Skip to content

Obama’s Great Recession

May 22, 2012

Obama’s Great Recession

Our Chief-Story-Teller is claiming the US economy has improved since his inauguration. I wonder from which fortune cookie he pulled that nonsense. Then in June, he said: “the private sector is doing fine.” Sooner or later, OBama needs to hone in on the truth or get better at lying. Zen is not easy. It takes effort to attain nothingness.

Regardless of what Obama says, you will always have to unravel his fictional narrative. While he claims to have a “laser focus” on jobs, he also admits he sometimes forgets the impact of the recession. Todays walkaway: Regardless of his swag, the record show that the programs Obama has put in place have failed. Keynesianism doesn’t work, never has worked, and never will work.

For all of his talk about jobs and the economy, most of Obama’s economic and job ‘recovery’ speeches are not plans, but politics of the plan. Every speech is a Mickey Rooney and Judy Garland musical. Yet, all the while Obama is systematically authoring an economic collapse, which would lead to political turmoil and ultimately socialism. When things collapse… everyone starts at the bottom together.

And, Socialism isn’t just about redistributing wealth. It’s about redistributing poverty. When you promote an entitlement mindset with free market rhetoric, fools will buy-in. And, it will attract lots of buyers. Socialism, not capitalism, is greed. People who are non-producers want what the producers have without working for it. In Obama’s world, businesses exist only to pay taxes and fund unions, who then fund Democrats, who then fund unions and their social programs. Repeat and rinse.

Jobs are the No. 1 issue going into the 2012 election, which makes the unemployment rate a particularly important indicator. Employment is a key economic indicator. But a return to economic growth is a PRECONDITION for growth in employment. And, the more we divert away from the real focus, the greater chance the GOP has of losing the election. But, knowledge is king. And just as they tell us when we first get on an airplane — we need to put our own oxygen mask on first before we help others.

A basic economics civil lesson…

Liberals believe power and income are derived from government, not the individual, ultimately believing justice, not law, is the means of their governance. There’s a clear cause and effect here that is a neat and predictable as a law of physics: As government expands, liberty contracts.

Every dollar government injects into the economy must first be taxed or borrowed ‘out of the economy’. No new spending power is created. It is merely redistributed from one group of people to another. It is intuitive that government spending financed by taxes merely redistributes existing dollars. In that sense, liberals think dipping water out of the deep end of the pool and dumping it into the shallow end of the pool will fill up the pool with more water.

But, government spending does NOT “pump new money into the economy” because government must first ‘tax or borrow’ that money out of the economy. Get it? So, once it becomes clear that government spending only redistributes existing demand, the case for “stimulus” spending collapses. All government stimulus spending requires first taxing or borrowing dollars that would have otherwise been applied elsewhere to the benefit of the economy.  This Keynesian model is flawed.

History shows the U.S. economy has soared highest when the federal government was shrinking, and it has stagnated at times of government expansion. You can’t borrow your way out of a recession. You cannot spend your way out of debt. In fact, it is a mathematical impossibility to get out of a credit recession with more debt. And, just as rising inflation distorts economic behavior, tax policy too, influences human behavior.

Tax rate cuts raise tax revenues due to increased taxable activity. It happens every time it’s tried and is easily provable.  Newton’s third law of motion even states that for every action there is an equal and opposite reaction. Therefore, if one object exerts a force on a second object, the second exerts an equal and oppositely directed force on the first one. Tax cuts raise tax revenues.

Democrats never figure into their calculations; the decrease in activity of an increased tax on that activity. After the Bush’s 2003 tax cut, the U.S. had 52 months of uninterrupted job growth. Boosting revenues requires expanding the economy so revenues generally correlate with economic growth, not tax rate increases. Tax cuts are great, but not if you don’t cut government spending.

Lower tax rates encourage working, saving, and investing, which in turn encourages job creation and wage growth. Even JFK understood that lower tax rates produce economic growth and even higher tax revenue. The current tax code punishes productive behavior and rewards unproductive behavior. And, the ‘tax the rich‘ class warfare canard Obama and the Democrats endlessly tout is numbing.

As bizarre as it might seem, its quite perverse to suggest that allowing someone to keep more of their own money, which in turn, stimulates people to take more risks by investing in businesses, would be a deterrent in stimulating economic growth. Money flows in circles: you get paid you spend it, and once spent, the store owner pays someone else, and that someone else spends elsewhere, and so on… It has a multiplier effect. So, how does Obama taxing John help Jane get a job?

Obama’s policies do nothing to increase capital investment, but instead, take from it. If banks don’t lend, small businesses can’t grow. If small businesses can’t grow, they cannot hire. If taxes go up, businesses cut cost. When businesses cut costs, workers are let go. When tax rates drop, tax revenue goes up. When businesses can hire, more employees are available to pay MORE in taxes.

This little off-Broadway production Obama and the Democrats have been performing is nearing its Final Act. Obama is America’s number One con artist and he will continue to cook the books on unemployment numbers and the economy right up to the election. But, Obama’s Recession is all on him. Just ask DNC Chair Debbie Wassermann Schultz…

The Scorecard…

Conclusion

There is no silver lining to Obama’s economic policies. This entire deteriorating economic outlook has undermined business confidence. Fear of implementation of ObamaCare. New EPA rulings. Ban on oil drilling. Spiraling debt. Real Estate Foreclosures. Bank failures. Increase in oil and energy prices. Falling dollar. Higher inflation. Taxing the 1%… Consumer confidence is down. All of this has paralyzed economic recovery as business leaders hold off on ‘new investments’ and corporate leaders ‘wait and see’ what next mandate is handed down from Washington.

The Obama administration can report all the funny numbers it wants, but the American people know in their guts that things are getting much worse. Its fabricated optics. Just about every objective indicator foreshadows a re-election defeat for Obama. He has spent his term in the White House trying to tax, spend and regulate the nation into prosperity. Obamanomics, Keynesian economics on steroids, has been a legacy of failure. You can’t put a happy face on the unemployment rate figures when people are not working. The USA has had the longest streak of +8% unemployment since the Depression under Obama: 39 months and counting.

Do not believe what the Obama government says, especially, with the unemployment and economic statistics. Trust your instincts. The ‘False Narrative’ is a boom industry in an election year. Manufactured government statistics will try to get Obama re-elected. Its twisted logic to think a President can benefit from a flawed formula that generates a positive outcome as unemployment numbers rise. Too many of us get swayed with unrelated distractions. Get comfortable talking about the facts of Obama’s failed economy. Its all right here.

Any Republican who doesn’t soundly tar and feather Obama with the job numbers this campaign is not worth his salt. Polls and government figures are equal to fairy tales. This ‘Great Obama Recession” will not be televised. It is up to us to spread the word. Even Arianna Huffington isn’t believing Obama’s jobs rhetoric anymore. Cue the golf clap.

Remember, Obama is claiming the US economy has improved since his inauguration and that the ‘private sector’ is doing fine.. Are you better off than you were four years ago?”  Uh, no… Democrats should seek wisdom from their own if they are serious about winning in November.  If I wanted America to Fail.. Video.

Additional Resources:

17 National Debt Statistics

U-3 Unemployment by State

A List of “Firsts” for President Obama

Obama’s List of ‘Accomplishments’

The Tax Foundation

Federal Budget in Pictures – Taxes

Federal Budget in Pictures – Federal Spending

Federal Budget in Pictures – Debt & Deficits

Federal Budget in Pictures – Entitlements

Beat Obama PAC

Bureau of Labor Statistics – BLS

Heritage: Bush Taxes & Deficit Myth

Heritage:  Ten Myths About the Bush Tax Cuts

Heritage:  Three Top Tax Cuts and Deficit Myths

Heritage: Bush Tax Cuts did not Cause Budget Deficit

Heritage: Tax Rate Reductions vs Rebates

Heritage:  Top 10 Myths about Bush Tax Cuts

Heritage:  Tax Cut Myths & realities

Heritage:  Tax Cuts increase Federal Revenues

Factcheck.org – Bush Middle Class Tax Breaks


9 Comments leave one →
  1. MaddMedic permalink
    May 22, 2012 7:48 am

    Reblogged this on Freedom Is Just Another Word….

  2. May 31, 2012 3:15 pm

    Reblogged this on Talon's Point.

  3. May 31, 2012 5:44 pm

    Reblogged this on Gds44's Blog.

  4. June 10, 2012 11:26 pm

    Reblogged this on Leftoutinamerica's Blog.

  5. June 12, 2012 1:54 pm

    Reblogged this on The Right of the People and commented:
    This article is full of win. It nails every issue solidly. GOP, please focus on the economy and Obama’s track record with it.

Trackbacks

  1. Obama’s Great Recession | Politisite
  2. Obama’s Great Recession | Iron Mill News Service
  3. Twitter: Obama’s Recession « Furthermore
  4. Graph #Obama #Recession, Failed Record of a Presidency. UpdatedFacts in one place « Egyptday1

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 133 other followers

%d bloggers like this: