President Doom and Panic Obama’s Big Lie: More Government Spending Works and Tax Cuts Do Not Work

Posted on February 10, 2009. Filed under: Blogroll, Economics, Employment, Investments, Politics, Quotations, Rants, Raves, Regulations, Taxes, Video | Tags: , , , , , , , , , , , , , , , , |

newsweek_photo1 

 

Bulworth (Warren Beatty) : the luncheon rap

 

 

Obama Flips Off McCain

  

President Obama’s

The American Recovery and Reinvestment Plan

 

 

 

President Obama’s first press conference – Question segment 1

 

Obama: I Thought FDR-New Deal Argument Was Resolved

 

Yes it was resolved that FDR intervention in the economy with massive federal government spending did not work in getting the economy out of the Great Depression.

The depression lasted until the start of World War II.

Stop misleading the Amercian people Mr. President.

Uncommon Knowledge: The Great Depression with Amity Shlaes

 

Tom Woods on Glenn Beck “Meltdown” 02/09/2009

 

Obama’s New New Deal: As bad as the old new deal?

 

Ayn Rand — “This Country is Moving Towards Socialism”

  

Liberate, Don’t Stimulate, the Economy – Ayn Rand Institute

 

President  Franklin D. Roosevelt’s  economic policies were a failure and prolonged the recession unnecessarily–hurting millions upon millions of Americans that remained unemployed for years.

FDR also had a justified reputation for being a notorious liar and manipulator of people.

Not exactly  a President one should emulate for economic policies, character and integrity.
 

President Doom and Panic Obama advocates the quick passage of a  “stimulus package”–the American  Recovery and Investment Plan–largely more Federal Government spending to pay off many of his Democratic supporters-government workers, union members and illegal aliens in the construction industry.

This stimulus bill is based upon the failed economic theories of John Maynard Keynes and is referred to by economists as Keynesian Economics:

 

Truth: More Government Spending Does Not Usually Work

Keynesian Economics Is Wrong Bigger Gov’t Is Not Stimulus CATO’s Dan Mitchell

 

Inhofe on Kudlow and Company

 

Inhofe Remarks on “1.2 Trillion Mistake”

Repeatedly President Doom and Panic Obama said that tax cuts do not work, this is a lie and is rewriting economic history.

 

Truth: Most Tax Cuts Do Work

 

Cutting the U.S.’s Corporate Tax Rate

 

The Laffer Curve, Part I: Understanding the Theory

 

The Laffer Curve, Part II: Reviewing the Evidence

 

The Laffer Curve, Part III: Dynamic Scoring (Corrected)

 

 

President Obama also misleads the American people as to what happened in Japan in the 1990 and the United States in 1930 when Keynesian economics and massive government spending was tried and only prolonged the recession/depression for many years.

One of the worst recession in US economic history was faced by a new President Warren G. Harding in 1921.

President Harding cut Federal government spending by about 40% and taxes were reduced.

The worse recesssion was also one of the shortest and resulted in an economic boom in the 1920s.

“…The recession of 1921-1923 recession proved to be the sharpest economic downturn since the emergence of the business cycle in the early 19th century, but it also was one of the shortest reversals. The government intervened to a greater extent, but wage rates were permitted to fall, and government expenditures and taxes were reduced. The recession was over in one year. …”

http://en.wikipedia.org/wiki/1921_recession

 

US Business Cycle Expansions and Contractions

Contractions (recessions) start at the peak of a business cycle and end at the trough.

http://www.nber.org/cycles.html

 

Wage Adjustment and Aggregate Supply  in the Depression of 1920-1921:  Extending the Bernanke-Carey Model 
 

 Bryan Caplan

 “… In one crucial respect, the depression of 1920-21 was actually more severe than the Great Depression itself: there was a rapid decline in the price level of between forty and fifty percent within the course of a single year.  As Friedman and Schwartz (1963) explain, “From their peak in May [1920], wholesale prices declined moderately for a couple of months, and then collapsed.  By June 1921, they had fallen to 56 per cent of their level in May 1920.  More than three-quarters of the decline took place in the six months from August 1920 to February 1921.  This is, by all odds, the sharpest price decline covered by our money series, either before or since that date and perhaps also in the whole history of the United States.” (1963, pp.232-233.)  The wholesale price index during the Great Depression took about three years to fall by the same amount. 

      Employment and output were however not as severely affected as in the Great Depression.  Of course precise unemployment data are not available for this period, but one representative estimate (Lebergott, 1957) puts civilian unemployment at 2.3% in 1919, 11.9% in 1921, and back to 3.2% in 1923.  Output figures tell a similar story: one aggregate index (Mills, 1932) indexes production at 125.3 in 1919, 99.7 in 1921, and rebounding to 145.3 in 1923.  As these stylized facts indicate, the second unusual feature of the depression of 1920-21 was the rapid recovery in employment and output, in sync with a swift adjustment of the real wage to its new equilibrium position. …”

http://74.125.95.132/search?q=cache:eTtQr-KkmTkJ:www.gmu.edu/departments/economics/bcaplan/year2.doc+caplan+wage+adjustment+1921&hl=en&ct=clnk&cd=1&gl=us

 

History speaks, who will listen?

“…So what to do? President Warren Harding first ignored his commerce secretary, Herbert Hoover, who wanted, naturally, to increase government further. Then he slashed federal spending – imagine! – cut taxes, paid down debt and, voila, the economy roared. Unshackled businesses reinvested. Factories rumbled back to life. Unemployment fell to 1.8 percent.

Hoover and then FDR tried a tack in precisely the opposite direction when the economy later slipped again, and the result was the Depression, exacerbated by the New Deal and ended by a wartime production boom.

What Harding understood that FDR and Hoover did not is that recessions, however painful, are necessary evils in a free-market economy, and not so evil at all when compared to totalitarian alternatives. The recession of 1920 to 1921, as historian Paul Johnson explained, “sorted out the sheep from the goats, liquidated the unhealthy elements in the economy and turned out the parasites … business downturns serve essential purposes. But they need not be long because they are self adjusting.”  …”

http://www.newsvirginian.com/wnv/news/opinion/editorials/article/history_speaks_who_will_listen/35528/

 

Harding and Historical Deconstruction

“…Harding inherited from the comatose Wilson regime one of the sharpest recessions in American history. By July 1921 it was all over and the economy was booming again. Harding and Mellon had done nothing except cut government expenditure by a huge 40 percent from Wilson’s peacetime level, the last time a major industrial power treated a recession by classic laissez-faire methods, allowing wages to fall to their natural level. Benjamin Anderson of Chase Manhattan was later to call it ‘our last natural recovery to full employment.’  The cuts were not ill-considered but part of a careful plan to bring the spending of the monster state which had emerged under Wilson back under control. The Budget and Accounting Act (1921) created a Bureau of the Budget, to subject authorizations to systematic central scrutiny and control. Its first director, Charles Dawes, said in 1922 that, before Harding, ‘everyone did as they damn well pleased,’ Cabinet members were ‘comanchees,’ Congress ‘a nest of cowards.’  Then Harding ‘waved the axe and said that anybody who didn’t cooperate his head would come off.’ The result was ‘velvet for the taxpayer.’

~Paul Johnson, A History of the American People, page 708  

 

Well President Obama how many Federal Government employees are being let go–any?

Start with your 1700 plus White House staff.

As I recall President Obama said that he was going to go over the budget line by line.

If President Obama and his staff cannot reduce Federal Government spending by at least 5% , they  are not really trying.

President Harding and not Presidents Hoover and Roosevelt should be the role model President Obama emulates. 

As an economist, I agree with President Obama that the American economy does need a stimulus package.

I know of no economist that advocates doing nothing, although it would be a better alternative course of action then massive government spending  and massive increases in the money supply–an economic catastrophe in the making bythe Obama Administration and the Federal Reserve.

However, instead of the Federal Government deciding what to spend taxpayer money on,  here is one economic plan that will at least let the American people make the spending and saving decision:

American People’s Household Stimulus Package Check–Please Call Today–Ask: Where is My Household Check for $7,044.24! I want my money back!

 

A even better plan that will work  in terms of creating million of jobs and getting the US economy out of the recesssion and booming again quickly:

 

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

 

The FairTax: It’s Time

 

Lunch&Taxes HOWITWORKS

 

Lunch&Taxes HOWMUCH

 

Lunch&Taxes COLLECTED

 

Lunch&Taxes: LESS

 

Lunch&Taxes HER

 

FAIRTAX AD

 

“Harding’s funeral train moving east was the occassion of extraordinary demonstrations of public affection for the man who, unlike Taft and Wilson, ‘looked like a president.’ In Cheyenne immense crowds stood in a dust-storm, in Chicago they filled the freight-yards until the train could not move: Harding was the kind of president American people of all classes love–kind, genial, decent, ordinary, human, one of them.”

~Paul Johnson, A History of the American People, page 710

 

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 1

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 2

 

Why Nazism Was Socialism and Why Socialism Is Totalitarian 3

Why Nazism Was Socialism and Why Socialism Is Totalitarian 4

Background Articles and Videos

 

 

Glenn Beck, “Do nothing, Congress!”

 

 

Glenn Beck is on a red scare

Glenn Beck, Economic Apocalypse (Obama’s Stimulus Package!)

 

 

Why I fear the west’s luck has run out

By Luke Johnson

“…Plenty of observers, including me, have criticised the media for being too gloomy. I am now beginning to believe that they have not been gloomy enough, if they want to reflect the true consequences of our profligacy and past conceit.

After all, who wants to face up to the bleak reality that confronts us? The experts say we will not suffer a repeat of the 1930s slump. Indeed, we have to contend with fresh issues. Like the fact that there are 1.5bn recent additions to the capitalist workforce in China and India – hard-working, increasingly well-educated people, all keen to better themselves. Meanwhile, modern logistics and communications mean trade and production can take place almost anywhere if it makes economic sense.

So why should industrious Asians earn a tiny fraction of what citizens in the west earn? Especially when they have so much of the cash and productive resources, while we have deficits, high costs and poor demographics.

Prepare for a wrenching, unstoppable redistribution of wealth – and I am not talking about domestic taxes. For too long it has been more profitable in the west to finance consumption rather than production. That cannot continue. I am afraid that the west’s credibility – and luck – has run out.

This vast reordering of our economic system has only just begun. We shall have to cancel all the self-indulgence of endless welfare spending and cultivate rather more of a work ethic and a sense of self-sufficiency. Expectations must be modified and attitudes altered profoundly. Expect years of negligible growth, permanent high unemployment, declining property prices, higher taxes, crumbling currencies and falling living standards.

We shall look back on the last decade and think: we never realised what we had until it was gone.”

http://www.ft.com/cms/s/0/49ccaa62-ec8e-11dd-a534-0000779fd2ac.html

 

Savior holds first fear-mongering press conference

By Michelle Malkin  

 

“…The wealth-redistributor-in-chief, his High Holiness, is set to begin his first official prime-time press conference at 8pm Eastern.

Will he go all Howard Dean?

Will he get snippy?

Drinking game buzzwords: “Bipartisan,” “crisis,” “get the economy moving again,” “create jobs.”

Add your own.

Update 8:05pm Eastern. President Obama. “It is only government that can break the vicious cycle.”

Jobs, jobs, jobs. Investment, investment, investment.

Gag. President Obama claims to be acting on behalf of my children and grandchildren.

Stop, thief. …” 

http://michellemalkin.com/2009/02/09/savior-holds-first-fear-mongering-press-conference/

 

1921 Recession

“The 1921 recession was an extremely sharp deflationary recession following World War I. It lasted until 1923. The extent of the deflation was not only large, but large relative to the accompanying decline in real product.

The National Bureau of Economic Research dates the 1921 recession from a general business peak in January 1920 to a trough in July 1921. The recession in the United States was brief relative to the Great Depression later that decade, but it included a very sharp price deflation. The decline in the GNP price deflator from 1920 to 1921 is the largest one-year percentage decline in the series in the more than 120 years covered.

Various estimates show that one-year deflation figures were 18 percent, 13.0 percent, and 14.8 percent, respectively. The closest comparator is the 11.5 percent deflation recorded for 1931-32, the third year of the Great Depression. Wholesale prices declined by 36.8 percent for 1920-21, the largest one-year decline on record, going back at least to the American Revolutionary War period. The 1921 deflation contains another striking feature. Not only was it sharp, it was large relative to the accompanying decline in real product. The ratio of the percentage decline in the GNP deflator for 1920-21 to the percentage decline in real GNP is 2.6 using the Department of Commerce figures. By contrast, during 1929-30, the first year of the Great Depression, the GNP deflator declined by 2.7 percent and real GNP by 9.4 percent, for a ratio of 0.3. The ratios of the percentage decline in GNP prices to the percentage decline in real GNP for 1930-31, 1931-32, 1932-33, and 1937-38, the other Great Depression years in which real GNP declined, were 1.0, 0.9, 1.2, and 0.3, respectively, all well below the 1920-21 figures.

Deflation was so sharp, both in itself and in relation to the decline in real product, because the deflation was produced by a sharp decline in aggregate demand combined with an increase in aggregate supply, a supply increase in which deflationary expectations played a prominent role.

As usual, a buoyant expansion followed the severe contraction of 1920-1921. In the 22 months after the depression bottom, industrial production rose 63%, the money stock expanded by 14%, and wholesale prices rose by 9%. Net national product rose 23% in the corresponding two calendar years. …” 

http://en.wikipedia.org/wiki/1921_recession

Thomas Sowell – Obama’s Vision

 

Dennis Prager & Thomas Sowell – Part 3/3

 

The Great Depression then 1929, & now 2008/09. PART 1:

 

The Great Depression then 1929, & now 2008/09. PART 2:

 

The Great Depression then 1929, & now 2008/09. PART 3:

 

The Great Depression then 1929, & now 2008/09. PART 4:

 

The Great Depression then 1929, & now 2008/09. PART 5:

 

The Great Depression then 1929, & now 2008/09. PART 6:

 

The Great Depression then 1929, & now 2008/09. PART 7:

 

The Great Depression then 1929, & now 2008/09. PART 8:

 

The Great Depression then 1929, & now 2008/09. PART 9:

 

The Great Depression then 1929, & now 2008/09. PART 10:

 

The Great Depression then 1929, & now 2008/09. PART 11:
 

 

The Great Depression then 1929, & now 2008/09. PART 12:

 

Keynesian Economics

“In economics Keynesianism (pronounced /ˈkeɪnziən/, also Keynesian economics and Keynesian Theory), is based on the ideas of twentieth-century British economist John Maynard Keynes. According to Keynesian economics the state should stimulate economic growth and improve stability in the private sector — through, for example, adjusting interest rates and taxation and funding public projects.

The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936.

In Keynes’s theory, some micro-level actions of individuals and firms can lead to aggregate macroeconomic outcomes in which the economy operates below its potential output and growth. Many classical economists had believed in Say’s Law, that supply creates its own demand, so that a “general glut” would therefore be impossible. Keynes contended that aggregate demand for goods might be insufficient during economic downturns, leading to unnecessarily high unemployment and losses of potential output. Keynes argued that government policies could be used to increase aggregate demand, thus increasing economic activity and reducing high unemployment and deflation.

Keynes argued that the solution to depression was to stimulate the economy (“inducement to invest”) through some combination of two approaches :

  • a reduction in interest rates.
  • Government investment in infrastructure – the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.[1]

A central conclusion of Keynesian economics is that in some situations, no strong automatic mechanism moves output and employment towards full employment levels. This conclusion conflicts with economic approaches that assume a general tendency towards an equilibrium. In the ‘neoclassical synthesis’, which combines Keynesian macro concepts with a micro foundation, the conditions of General equilibrium allow for price adjustment to achieve this goal.

The New classical macroeconomics movement, which began in the late 1960s and early 1970s, criticized Keynesian theories, while New Keynesian economics have sought to base Keynes’s idea on more rigorous theoretical foundations. 

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

 

Obama Hid His Father’s Socialism From Readers

“…There’s a big mystery at the heart of Barack Obama’s Dreams From My Father:  A Story of Race and Inheritance.  What was Barack Obama doing seeking out Marxist professors in college?  Why did Obama choose a Communist Party USA member as his socio- political counselor in high school?  Why was he spending his time studying neocolonialism and the writings of Frantz Fanon, the pro-violence author of “the Communist Manifesto of neocolonialsm”, in college?  Why did he take time out from his studies at Columbia to attend socialist conferences at Cooper Union?

And there is more mystery in the book.  Why does Obama consider working in a consulting house for international business like being “a spy behind enemy lines?”  Why does he repeatedly find it so hard to explain his political views to others?  Why was he driven to become a left-aligned political organizer?  It’s a question Obama again and again can’t seem to answer to the satisfaction of the interlocutors in his own memoir.

If there is a mystery at the heart of Barack Obama’s Dreams From My Father, one thing is not left a mystery, the fact that Barack Obama organized his life on the ideals given to him by his Kenyan father.  Obama tells us, “All of my life, I carried a single image of my father, one that I .. tried to take as my own.” (p. 220)   And what was that image?  It was “the father of my dreams, the man in my mother’s stories, full of high-blown ideals ..” (p. 278)  What is more, Obama tells us that, “It was into my father’s image .. that I’d packed all the attributes I sought in myself.”  And also that, “I did feel that there was something to prove .. to my father” in his efforts at political organizing. (p. 230) …”

 

http://blog.mises.org/archives/008007.asp

Warren Beatty interview Bulworth with Jimmy Carter

 

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