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Obama and Dems headed for pending fiscal disaster

Posted by Stephen on February 8, 2009

Hasn’t Obama and the Democrats on Capital Hill heard of the KISS philosophy?

Obama and his Democratic Party had a simple task to complete. Unfortunately, their obsession with excessive government spending and their need to prove to the world how right they are may lead to a fiscal challenge of unprecedented difficulty.

Keep It Simple Stupid! That’s the KISS philosophy and there may have never been a better time to follow it than right now. In this case, keeping it simple means you don’t let a doctor treat you for a broken leg when all you have is the flu.

Our economy is broken at the moment. The task at hand is to find out what is at the root of the problem. For some time now both parties, and plenty of fiscal experts have pointed out, gone over, and thoroughly vetted the sub-prime lending market and the negative effects it has had on our economy; specifically the closure of the credit markets to mainstream America and small businesses.

So why would Obama and his minions brush aside the mortgage challenge in favor of passing a spending bill that does nothing to solidify the credit market, does even less to save foreclosed homes, and spends less than 5% on the infrastructure that he stated was the lynchpin of his plan for economic success?

Why would Obama, Barney Franks, Nancy Pelosi, Harry Reid and their ilk, take such an arrogant position? That is to say, why wouldn’t they complete what they started? Why wouldn’t they spend 400 billion dollars on buying bad mortgages, refinancing them at a 4% fixed rate to the struggling home owner, while freezing federal income taxes on all Americans and small businesses for twelve months? It would cost less than they’re spending now and it would have immediate impact.

Instead, they are going to pass a bill that does nothing but secure reckless spending on pet projects. They are going to place American families at risk with an additional 1 trillion dollars of debt and not touch the fundamental problem that hinders our economy. Are they that incompetent and arrogant, or is it simply one more step toward total nationalization of business, health and welfare, and energy?

This may not be the last of the government bailouts either. Mark Zandi, chief economist at Moodyseconomy.com, said he thinks the White House will need to ask for another $350 billion down the road for the bank bailout.

That potential has Tennessee’s Republican Sen. Lamar Alexander in a furor over the decision to go for the economic recovery program while still dealing with the financial bailout. He told FOX News that if the administration knew it was going to ask for more for housing and banks, it should start there rather than seeking $800 billion for an array of spending programs that he says won’t solve the credit crisis.

Republicans “wanted lower mortgage interest rate for most credit-worthy Americans and tax credit for home buyers. We had other ideas. (Democrats) have ideas. Let’s do that first,” Alexander said. “We know we’re going to have to spend several hundred billion dollars on the bank problems, on the troubled assets. Then we might have had less appetite, just to waste money on passing spending projects that really have nothing to do with stimulus.”

Obama delivered a partisan speech full of combative rhetoric and condescending jabs directed toward Republicans. During the speech he said people can’t come to the table with the same old solutions of the past and expect our economy to turn around.

How ironic it is that he is selling America out with the same stale arguments Democrats have been making since they gave up there conservative roots for a far left, socialist, liberal agenda that believes you should pay the state. Obama has abandoned his promises to the American people of a new Washington. Instead, he is embracing the same old notion that all economic problems are solved with higher taxes and more government spending no matter how contrary to free market principles that is; no matter how abrasive that will be to the middle class budgets of the very households he has the audacity to suggest he wants to help.

Stephen Winslow is the executive editor of Conservative Viewpoints.

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5 Responses to “Obama and Dems headed for pending fiscal disaster”

  1. Cathy said

    I strongly agree with the point that the mortgage issue is the root of the current crisis. I don’t agree with further bailouts of banks or companies that have caused their own crisis. I don’t agree that stimulus is a bad idea, if it does relate to getting people back to work. Getting money to my state for roads and bridges WILL make jobs for the local economy. And with those people working again, other companies will put more employees on the payroll to handle those now spending again in retail and in restraunts.
    This is a very bad crisis, brought on by years of greed and de-regulation. We are headed for even tougher times and trying to veil that in flowery terms won’t change the reality. Even with this stimulus and tax cuts, we will not see much change for 18-20 months, and that assumes there are no further shocks to the system.
    Reagan cut taxes at the beginning and then raised them later. His “Trickle Down Economics” didn’t work. Bush led this country on the continued path of “Disaster Capitalism” that was tested out during the Reagan years. I am sure most Conservatives have read about Milton Friedman’s Chicago School of Economics and who followed his teachings, and why it’s to blame for what we have now.

  2. Stephen said

    Obama, at last night’s press conference, asked for a year. He stated that this was going to be a rough year but at that point he would be looking for the economy to have steadied and be headed in the right direction. He also stated that his benchmark for success would “jobs.” He stated that he is looking to create or keep up to 4 million jobs. I think that’s the lynchpin for his success or failure. If he creates the jobs he’s speaking of, and can do so in a year or so, he will be a hero. If he can’t, he and the Dems will be wearing an anchor around their necks; it will be a tough run for them.

    I’ve got to say, I love people who go after Reagan and Friedman. Both had great success and both were right. However, free market success means continuous tweaks. You, I’m sure, are aware of carrots and sticks as a tool for the economy. Taxes are the primary element in that discussion. Want business to grow and consumers to spend, use tax cuts and credits to get there; want business to slow production to avoid inflation and for consumers to save or slow their demand, raise taxes. There’s nothing wrong with both used appropriately. The killer is when someone cuts taxes and keeps spending like a drunken sailor (ie George W Bush), or when you raise taxes while watching inflation soar, unemployment climb, credit and investment stop and an overall crisis take form and do nothing…like Jimmy Carter did in the mid 70’s (it was more complex than that, but bad just the same).

    Whether you agree with the bank bailout or not, it’s coming. Obama restated that fact last night. The thing is just about every economist that speaks, every politician-no matter what initial is next to their name, and Obama himself has stated that the banking crisis IS what got us into this mess…so why wouldn’t you address what got us here before doing anything else?

    I certainly don’t get that. If you have the flu, you don’t let the doctor operate on your leg….fix what’s broken and it will jump start the economy. At that point, you can see what needs to be invested in new job technology, tax cuts, and other projects you see as additionally prosperous as long term solutions. That just seems like common sense to me. I also find it interesting to hear Obama acknowledge, as he did last night, that businesses need to have access to credit in order to be able to expand and then suggest that his stimulus, which doesn’t address the banking crisis, will allow business to expand….that doesn’t add up.

    In the end, I hope it works. I have no problem acknowledging Obama as a hero, or savior of our economy, or just “what the doctor ordered” if he can be successful…I’m just worried that it’s emotionally satisfying to accomplish the plan but short on substance and focus.

    I did appreciate the fact that he readily acknowledges that he really doesn’t know if it will work. After all, either do any of us…

  3. Josh said

    “Obama and his minions”

    Do you really expect me to take you seriously when you say something like that?

  4. Stephen said

    “Minion,” as defined in Webster’s, is a subordinate official; a servile dependent, a follower.

    Not only is it serious, Josh, it’s worse than was expected. Not only is this president destroying our economy and setting the stage for his ultimate desire of socialism, but he’s attacking the Constiution along the way. He is a bad, dangerous and ugly man who is as manipulative a person as has ever led in the United States. From increasing debt by more than 1.5 Trillion dollars to his desire to nationalize business, banking, energy, and health care, his agenda is clear and it is anti-American. It attacks our economic way of life, our freedom and our liberty.

  5. Josh said

    You can believe what you want, but I don’t agree with you.

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