Monday, 30 November 2009

Obama’s Crashing Economic Recovery

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There’s a new picture of Obama that’s sticking in my mind, like a song that keeps playing in your head  (the one that keeps playing for me this week is “Empire State of Mind,” especially the lines by Alicia Keys).

In this mental picture of Obama, he’s crunched down in a tiny cockpit and wearing oversized Kamikaze goggles.

His plane is completely coming apart, pieces flying off in all directions, and he’s got the throttle wide open, going faster and faster with that big million-dollar smile fixed on his face like everything’s cool.

That picture first popped into my mind when the survey from Gallup on Obama’s crashing poll numbers showed that his approval rating among whites has dropped to 39 percent (down from 61 percent in February) and the White House simultaneously announced that Obama will be flying off to Europe to pick up his peace prize and stopping in Copenhagen to vow that the United States will cut its greenhouse emissions by nearly 20 percent over the next 10 years.

Given the administration’s job-killing agenda, Obama might well be able to more than accomplish that energy-cutting goal without adding a single windmill.

With unemployment already at 10.2 percent (actually 17.5 percent by the government’s own numbers, counting “discouraged” workers who’ve quit looking for a job — and counting part-timers seeking full-time work), and the economy still losing a quarter million jobs per month, and 2.9 million jobs lost since Obama signed the $787 billion non-stimulating stimulus bill into law in February; the administration’s economic agenda is basically a suicide mission that treats job creation like cigarettes — something to discourage through increased regulations, more central controls  and higher taxation.

The basic Law of Demand principle in Economics-101 shows that consumers purchase less of something when the price goes up, and it’s no different with employers and entrepreneurs when they’re deciding on how much labor to purchase or how many jobs to create through business expansion or new start-ups.

So how can Obama maintain that economic recovery and more jobs will be delivered through his administration’s agenda of higher costs on business by way of carbon taxes, higher energy prices for consumers and employers, the cancellation of secret ballots for workers in union-organizing drives, mandated hikes in the minimum wage, higher payroll taxes on business to fund proposed health care mandates, a new surtax of 5 points on the incomes of the nation's key job creators, a higher inheritance tax that directly drains capital from the small business sector that’s creating most of the new jobs in the economy, and a 69-percent increase in the tax on capital gains, all of which are clear disincentives to new investment and job creation?

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It’s either a complete lack of understanding of even the basics in freshman economics or a refusal to accept the reality of how the world works, a blind devotion to what’s been proven to be a failed ideology, a Kamikaze mission, a last-ditch effort to intentionally go down in flames as a spotless devotee of statism and collectivism.

So off he’ll fly, picking up a peace prize and vowing to obey international directives that will diminish America’s sovereignty and economic growth. Totally ignoring the recent disclosures on how climate researchers have trumped up global warming numbers and plotted to crush dissent, he will advocate a global redistribution-of-wealth scheme in which the United States, already $12 trillion in the hole, will send hundreds of billions to the world’s poorest countries in order to green up a planet that’s already cooling.



And so it’ll be windmills for Ethiopia and a redistribution of American wealth on a global scale while the official arbiters of climate science continue to rig the warming “consensus” by silencing their critics by way of organized disparagement and exclusion from publication in peer-reviewed journals.

It wasn’t all that long ago that Obama pledged that his administration would “base our public policies on the soundest science” and be “open and honest with the American people about the science behind our decisions.”


Ralph R. Reiland is an associate professor of economics at Robert Morris University in Pittsburgh.