Obama could not be more wrong about almost every issue. Yet it is my belief the man is far too intelligent to hold the beliefs he espouses. I struggle to reconcile Obama’s apparent intellect with his apparent lack of “real world” understanding of most issues. I can only conclude the man has found himself between a rock and a hard place… and forced to say and do things that are out of character for a man of such intellect. Seemingly, he does not understand even the basics of Economics 101. We all know, the Government does not create jobs. And when the government spends money it takes money out of circulation in order to purchase things. Granted there is a short-term stimulus or multiplier on this money when it returns to the private sector, but it is nothing more than a short-term reaction to an infusion of money supply. Further his approach to stimulating the economy is 180 degrees opposite of his campaign rhetoric. My observation of the macroeconomic effects of Obama’s so-called stimulus is nothing more than simply “kicking a can down the road”. It heaps monstrous debt on our children and will not change the economic climate meangingfully. Bottom-line, the economy has to sort out the problems it is now experiencing through the “invisible hand” that Adam Smith talked about in Wealth of Nations over 100 years ago. And government was not Adam Smith’s solution to wealth creation then, nor is it the solution today. Self reliance is a personal key to personal success and capitalism is the economic model that gives each of us the ability to create a comfortable life for our families and ourselves.
Monthly Archives: February 2009
Hey Congress… why stop with cash giveaways to every American?
Is there no limit to where Congress and our inexperienced irrationally “idealistic” President might take this Country. Each day a new executive order is signed giving away more and more of my money to people who… in some cases don’t need the money and in many cases are not even asking for the money. Congress is moving towards setting aside the age old truisms of Economics 101, and simply rearranging the market as they see fit. They do this in a vacuum devoid of any economic principles as most Congressmen haven’t even pumped their own gas in 10 years. I ask… how can the government just decide 30 year mortgages should be 4%. Worse yet, how does the government just snap its fingers and suddenly 4% is the benchmark across the country. And if this is where we are going… i.e. arbitrary configuring of the economy, why stop at 4% mortgage rates. Let’s just all decide we should have incomes of $100,00 per year, we should get $15,000 payments to buy new cars, we should get $25,000 for purchasing a new home, free electricity and natural gas, fixed gasoline prices of $1.00 per gallon, cradle to grave healthcare, and on and on… Don’t laugh, while I have inflated some of the above suggestions, bits and pieces of these ideas have been discussed and kicked around by Congress, and I have no doubts Obama would seriously consider many of these programs. Here’s the problem though… who is going to pay for this. You can’t just arbitrarily determine prices and subsidies and incomes… blah blah blah. And if you think we have serious drug problems now, take away people’s motivations to work and achieve things in life, and watch how quick people become drug addicts and alcoholics. Humans need challenges in their lives to truly experience life. Take away all the trials and tribulations of life and surprisingly life becomes very very dull. Why? Because without experiencing difficult times, one cannot enjoy the good times. Without the bad there is no good as you need one to know the difference. Admittedly, I have exaggerated things, but even in the absurd ideas there are threads of truth and threads of just how idealistic and out-of-touch liberals think. WE should all be worried about where the new Congress and President are heading. They know not what they do!