President Barack Obama Peddling The Government Dependency Package (GDP) and Fear Mongering The Raw Deal!

Posted on February 6, 2009. Filed under: Blogroll, Economics, Employment, Energy, Investments, People, Politics, Quotations, Raves, Taxes, Video | Tags: Barack Obama, Economy, GDP, GNP, government dependency peddler |

President Obama on Economic Recovery

Obama Finally Lays Into the Opposition re: Stimulus Package 02-05-09

For economists GDP means Gross Domestic Product and measures the national income and output produced over a specified period time such as a year.

U.S. 4Q GDP Falls 3.8% – Bloomberg

Art Laffer on CNBC’s Kudlow Jan 23

President Obama apparently thinks it stands for Government Dependency Package, aka the so-called Stimulus Package–payoffs for the Democratic constitutents–play for pay.

When you actually look at what is in the so-called stimulus package, much of it is just more government spending and creates more dependency upon the Federal government:

“…Wasteful and Non-Stimulus Spending Provisions

• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Dept. of Energy defunded last year because the project was inefficient
• A $246 million tax break for Hollywood movie producers to buy motion picture film
• $650 million for the digital television (DTV) converter box coupon program
• $88 million for the Coast Guard to design a new polar icebreaker (arctic ship)
• $448 million for constructing the Dept. of Homeland Security headquarters
• $248 million for furniture at the new Dept. of Homeland Security headquarters
• $600 million to buy hybrid vehicles for federal employees
• $400 million for the CDC to screen and prevent STD’s
• $1.4 billion for a rural waste disposal programs
• $150 million for Smithsonian museum facilities
• $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion
• $75 million for “smoking cessation activities”
• $200 million for public computer centers at community colleges
• $75 million for salaries of employees at the FBI
• $25 million for tribal alcohol and substance abuse reduction
• $10 million to inspect canals in urban areas
• $6 billion to turn federal buildings into “green” buildings
• $500 million for state and local fire stations
• $650 million for wildland fire management on Forest Service lands
• $150 million for Smithsonian museum facilities
• $1.2 billion for “youth activities,” including youth summer job programs
• $88 million for renovating the headquarters of the Public Health Service
• $412 million for CDC buildings and property
• $500 million for building and repairing NIH facilities in Bethesda, MD
• $160 million for “paid volunteers” at the Corporation for National and Community Service
• $5.5 million for “energy efficiency initiatives” at the VA “National Cemetery Administration”
• $850 million for Amtrak
• $100 million for reducing the hazard of lead-based paint
• $75M to construct a new “security training” facility for State Dept Security officers when they can be trained at existing facilities of other agencies.
• $110 million to the Farm Service Agency to upgrade computer systems
• $200 million in funding for the lease of alternative energy vehicles for use on military installations.
• State Medicaid Bailout: $87.7 billion Through 3 different mechanisms, the bill would provide additional federal funds to state Medicaid programs over the next 3 years. This is nearly $70 billion more than the governors asked President Obama for in December, and should be a loan to be repaid by the states.

Questionable Policy

• Eliminates fees on loans from the Small Business Administration, thus pushing private capital toward unproductive businesses and away from productive businesses.
• Increases the definition of “youth” for certain summer job programs from age 21 to age 24.
• $160 million to the Job Corps program at the Dept. of Labor, but not for job programs – rather, to construct, alter or repair buildings.
• Requires a government study on the impact of minimum wage laws on the Northern Mariana Islands and American Samoa.
• $79 billion State Fiscal Stabilization (slush) Fund to bailout the States by providing billions of dollars for “education” costs of any kind.
• $47.843 billion is appropriated for a variety of energy programs that are primarily focused on renewable energy development and energy conservation/efficiency. Not one dollar is appropriated to make fossil fuels more affordable in the near future. More than $6 billion of these funds go to environmental clean ups.
• Increases eligibility for “weatherization” assistance to households 200 percent above the poverty level.
• The “Making Work Pay” credit of $500 to every individual making less than $75,000 (or $1000 to couples making $150,000 or less) would pay people whether they are productive or not – akin to welfare.
• The Supplemental Nutrition Assistance Program (SNAP – food stamps) would temporarily suspend the 3-month limit for non-working adults to receive SNAP benefits, thus giving incentives not to find a job.
• Installs government as the creator of broadband deployment regardless of whether the specific local/regional market can sustain it.
• Funds new “green jobs” job-training program without eliminating inefficient job-training programs or consolidating duplicative job-training programs.
• $890 million to the Social Security Administration without any provisions to reduce improper payments, or any plan to increase solvency of the trust fund.
• Nothing requires the products that are purchased with these funds be here in America. Lithium ion batteries, for instance, are primarily made in Asia. …”

http://coburn.senate.gov/public/index.cfm?FuseAction=RightNow.Home

When it comes to economics President Obama demonstrates his ignorance of the subject and his bias towards socialism or a government program to “solve'” any problem.

The result is ever growing government spending, deficits, national debt–Big Government!

Power of the Market – Big Government 1

Power of the Market – Big Government 2

Suggest President Obama watch the entire series Free to Chose by the late economist Milton Friedman, especially the videos pertaining to the failure of socialism:

Socialism not capitalism are the old worn ideas that have failed Mr. President.

As for this recession being the worse one in history and the one from which “perhaps” we will not recover–utter rubbish Mr. President:

President urges Congress to act!

Glenn Beck’s Comrade Update — [02-05-09]

Recessions and other Economic Crises

Name	Dates	Duration	Time since start of previous entry	Causes	References
Panic of 1797	1797–1800	&0000000000000003.0000003 years	–	The effects of the deflation of the Bank of England crossed the Atlantic Ocean to North America and disrupted commercial and real estate markets in the United States and the Caribbean. Britain‘s economy was greatly affected by developing disflationary repercussions because it was fighting France in the French Revolutionary Wars at the time.	^[8] ^[4]
Depression of 1807	1807–1814	&0000000000000007.0000007 years	&0000000000000010.00000010 years	The Embargo Act of 1807 was passed by the United States Congress under President Thomas Jefferson. It devastated shipping-related industries. The Federalists fought the embargo and allowed smuggling to take place in New England.	^[9]^[10]^[4]
Panic of 1819	1819–1824	&0000000000000005.0000005 years	&0000000000000012.00000012 years	The first major financial crisis in the United States featured widespread foreclosures, bank failures, unemployment, and a slump in agriculture and manufacturing. It also marked the end of the economic expansion that followed the War of 1812.	^[11]^[12]^[4]
Panic of 1837	1837–1843	&0000000000000006.0000006 years	&0000000000000018.00000018 years	A sharp downturn in the American economy was caused by bank failures and lack of confidence in the paper currency. Speculation markets were greatly affected when American banks stopped payment in specie (gold and silver coinage).	^[13]^[4]
Panic of 1857	1857–1860	&0000000000000003.0000003 years	&0000000000000020.00000020 years	Failure of the Ohio Life Insurance and Trust Company burst a European speculative bubble in United States railroads and caused a loss of confidence in American banks. Over 5,000 businesses failed within the first year of the Panic, and unemployment was accompanied by protest meetings in urban areas.	^[14]^[4]
Panic of 1873	1873–1879	&0000000000000006.0000006 years	&0000000000000016.00000016 years	Economic problems in Europe prompted the failure of the Jay Cooke & Company, the largest bank in the United States, which burst the post-Civil War speculative bubble. The Coinage Act of 1873 also contributed by immediately depressing the price of silver, which hurt North American mining interests.	^[15]^[4]
Long Depression	1873–1896	&0000000000000023.00000023 years	–	The collapse of the Vienna Stock Exchange caused a depression that spread throughout the world. It is important to note that during this period, the global industrial production greatly increased. In the United States, for example, industrial output increased fourfold.	^[16]^[4]
Panic of 1893	1893–1896	&0000000000000003.0000003 years	&0000000000000020.00000020 years	Failure of the United States Reading Railroad and withdrawal of European investment led to a stock market and banking collapse. This Panic was also precipitated in part by a run on the gold supply.	^[17]^[4]
Panic of 1907	1907–1908	&0000000000000001.0000001 year	&0000000000000014.00000014 years	A run on Knickerbocker Trust Company deposits on October 22, 1907 set events in motion that would lead to a severe monetary contraction.	^[18]^[4]
Post-World War I recession	1918–1921	&0000000000000003.0000003 years	&0000000000000011.00000011 years	Severe hyperinflation in Europe took place over production in North America. It was a brief but very sharp recession and was caused by the end of wartime production, along with an influx of labor from returning troops. This in turn caused high unemployment.	^[19]^[4]
Great Depression	1929–1939	&0000000000000010.00000010 years	&0000000000000011.00000011 years	Stock markets crashed worldwide, and a banking collapse took place in the United States. This sparked a global downturn, including a second, more minor recession in the United States, the Recession of 1937.	^[20]^[4]
Recession of 1953	1953–1954	&0000000000000001.0000001 year	&0000000000000024.00000024 years	After a post-Korean War inflationary period, more funds were transferred into national security. The Federal Reserve changed monetary policy to be more restrictive in 1952 due to fears of further inflation.	^[21]^[22]^[4]
Recession of 1957	1957–1958	&0000000000000001.0000001 year	&0000000000000004.0000004 years	Monetary policy was tightened during the two years preceding 1957, followed by an easing of policy at the end of 1957. The budget balance resulted in a change in budget surplus of 0.8% of GDP in 1957 to a budget deficit of 0.6% of GDP in 1958, and then to 2.6% of GDP in 1959.	^[23]^[4]
Recession of 1960-1	1960–1961	&0000000000000001.0000001 year	&0000000000000004.0000004 years	After President Kennedy’s 30 January 1961 call for increased government spending to improve the Gross National Product and to reduce unemployment, the 1960-61 recession ended in February.^[24]
1973 oil crisis	1973–1975	&0000000000000002.0000002 years	&0000000000000016.00000016 years	A quadrupling of oil prices by OPEC coupled with high government spending due to the Vietnam War led to stagflation in the United States.	^[25]^[4]
Early 1980s recession	1980–1982	&0000000000000002.0000002 years	&0000000000000007.0000007 years	The Iranian Revolution sharply increased the price of oil around the world in 1979, causing the 1979 energy crisis. This was caused by the new regime in power in Iran, which exported oil at inconsistent intervals and at a lower volume, forcing prices to go up. Tight monetary policy in the United States to control inflation led to another recession. The changes were made largely because of inflation that was carried over from the previous decade due to the 1973 oil crisis and the 1979 energy crisis.	^[26]^[27]^[4]
Early 1990s recession	1990–1991	&0000000000000001.0000001 year	&0000000000000010.00000010 years	Industrial production and manufacturing-trade sales decreased in early 1991.	^[28]^[4]
Early 2000s recession	2001–2003	&0000000000000002.0000002 years	&0000000000000011.00000011 years	The collapse of the dot-com bubble, the September 11th attacks, and accounting scandals contributed to a relatively mild contraction in the North American economy.	^[29]^[4]
Late 2000s recession	2007–present	ongoing	&0000000000000006.0000006 years	The collapse of the housing market led to bank collapses in the US and Europe, causing the amount of available credit to be sharply curtailed.	^[30]^[31]

This is utter nonsense and fear mongering of the worse kind.

If the Speaker of the House and the President of the United States cannot get the numbers right nor the history, what makes them think the American people trust them to get the policy right.

Nancy Pelosi ‘500 MILLION AMERICANS LOSE JOBS EVERY MONTH’

Obama Claims He’s Visited 57 States

FYI Obama kool aid drinkers– the population of the entire United States is about 304 million and there are 50 states–Google it!

The American people are looking for real hope and real change–jobs.

Here is one that will work:

American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009!

Tea Parties Take Off In Texas–Spreading Nationwide–Are You Going To Washington Fair? Millions Celebrate The Second American Revolution–Saturday, July 4, 2009

President Obama needs to show some courage and leadership–emulate President Lincoln or President Truman.

This is how professionals do it:

US Airways Flight 1549 – Audio Tapes Released

If President Obama is successful in rushing through the Government Dependency Package, aka the “stimulus bill” or talk radio’s favorite description the “crap sandwich” , Obama ‘s Presidency just crashed and burned.

By the time Obama sorts it out, the economy will be on its way to a two year recession followed by two years of very high inflation–the joys of stagflation–Carter 2 all over again.

Background Articles and Videos

Congressman Pence on “Hannity” to discuss stimulus

The No-Stimulus Bill
Don’t be fooled.By Phil Kerpen

“…How can any reasonable person believe that our country needs another pile of consumption spending and debt that will have to be repaid out of future income? The credit crisis was caused, in large part, by far too much borrowing to finance consumption expenditures at the household, corporate, and government levels. More borrow-and-spend isn’t change, it’s more of the same.

And truth be told, there’s barely any stimulus in this bill. Only about 3.5 percent of the expenditures in the current package would actually go to highways and bridges, the real physical infrastructure of our country. The rest would be spent on non-stimulus items such as global-warming computer modeling (I thought the debate was over), digital TV coupons, the National Endowment for the Arts, war bonuses for veterans in the Philippines, increased Amtrak subsidies, and new housing slush funds that could subsidize ACORN’s illicit political activities.

Conservatives who stand against this bill need to keep arguing the economic lessons of the 1930s — that rather than create wealth, government spending can destroy it, and that the jobs government spending does create are far fewer than the unseen jobs it destroys. But conservatives also need to be mindful of the political lessons of the 1930s: Democrats today are poised with this bill to construct a national political-patronage machine designed first and foremost to assure their election and re-election, which is the real legacy of the New Deal. …”

http://article.nationalreview.com/?q=NWI1MmYyYWYyNjg4YzRiODFhMzQ0OGJmMmEwOWM0NDc=#more

Gross domestic product

“The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and output for a given country’s economy. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products, in the period. Third, it is equal to the sum of the income generated by production in the country in the period—that is, compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits).^[1] ^[2]

The most common approach to measuring and quantifying GDP is the expenditure method:

GDP = consumption + gross investment + government spending + (exports − imports), or,
GDP = C + I + G + (X − M).

“Gross” means that depreciation of capital stock is not subtracted out of GDP. If net investment (which is gross investment minus depreciation) is substituted for gross investment in the equation above, then the formula for net domestic product is obtained. Consumption and investment in this equation are expenditure on final goods and services. The exports-minus-imports part of the equation (often called net exports) adjusts this by subtracting the part of this expenditure not produced domestically (the imports), and adding back in domestic area (the exports).

Economists (since Keynes) have preferred to split the general consumption term into two parts; private consumption, and public sector (or government) spending. Two advantages of dividing total consumption this way in theoretical macroeconomics are:

Private consumption is a central concern of welfare economics. The private investment and trade portions of the economy are ultimately directed (in mainstream economic models) to increases in long-term private consumption.
If separated from endogenous private consumption, government consumption can be treated as exogenous,^{[citation needed]} so that different government spending levels can be considered within a meaningful macroeconomic framework.

GDP can be contrasted with gross national product (GNP, or gross national income, GNI), which the United States used in its national accounts until 1992. The difference is that GNP includes net foreign income (the current account) rather than net exports and imports (the balance of trade). Put simply, GNP adds net foreign investment income compared to GDP. United States GDP, GNP and GNI (Gross National Income) can be compared at EconStats [1].

GDP is concerned with the region in which income is generated. It is the market value of all the output produced in a nation in one year. GDP focuses on where the output is produced rather than who produced it. GDP measures all domestic production, disregarding the producing entities’ nationalities.

In contrast, GNP is a measure of the value of the output produced by the “nationals” of a region. GNP focuses on who owns the production. For example, in the United States, GNP measures the value of output produced by American firms, regardless of where the firms are located. Year-over-year real GNP growth in the year 2007 was 3.2%. …”

http://en.wikipedia.org/wiki/Gross_domestic_product