For two years I have been arguing here and elsewhere that Obamanomics will not work. But for Obama and the Democrats to persist in transparent error after the election tsunami and now last Friday's catastrophic unemployment report has now veered into madness.
Obama's unreconstructed, throwback Keynesian economics from the 1970s and even the 1930s was a proven failure 30 years ago. Bringing it back as if nothing has happened since the Keynesian intellectual high water mark in the 1960s is public policy malpractice so extreme that it deserves sanctions. But Obamanomics has now gone beyond this silliness to outright assault on critical areas of our economy.
Dude, Where's My Recovery?
The American economy doesn't just fall flat on its back and then stay there for years and years. That has happened in countries like India in the past (currently booming), or Bangladesh or Argentina today, or elsewhere in the Third World. But not America.
For over 200 years, the American economy has fallen into periodic recessions and then recovered in a normal business cycle. A great success of Reaganomics was that it stimulated a 25-year economic boom virtually uninterrupted by recession. (People on the Left, like "Progressive" talk radio savant Thom Hartmann, don't know that, because mentally they have not been living in America during that time).
But on average since World War II, now 65 years ago, recovery from recession has arrived just 10 months after the recession began. The longest previous postwar recession was 16 months.
But as of last Friday, nearly 3 years after this latest recession began, the unemployment rate was still rising, flirting with double digits at 9.8%. African Americans suffered with an unemployment rate at 16%, Hispanics with unemployment at 13.2%. Instead of a recovery after a previous recession record of 16 months, the unemployment rate has now remained stuck at 9.5% or above for a postwar record 16 months. This is why the record of Obamanomics is starting to look more like a depression than a recession.
The Bureau of Labor Statistics (BLS) household survey in Friday's report actually showed a loss of 173,000 jobs last month, after a loss of 330,000 jobs the previous month, in a self-reinforcing downward spiral.
The number of unemployed rose to 15.1 million last month, with another 9 million "working part time because their hours had been cut back or because they were unable to find a full-time job," according to the BLS. The number of discouraged workers who were not counted as unemployed because they had given up looking for work was up 421,000 from a year earlier.
As economist John Lott explained at FoxNews.com last Friday, "Economists thought that the unemployment rate would rise as some of the Americans who had completely left the labor force began to look again for jobs." That would actually be a sign of coming recovery.
But as Lott further explained, that hopeful reason was not the cause of rising unemployment last month. Lott wrote, "Unfortunately, the bad news today is that not only is the number of unemployed rising, the number of people who have given up and left the labor force is also still going up. More than 500,000 Americans have left the labor force since September -- a shocking rise in such a short period of time for a so-called 'recovery.'" Moreover, "2 million Americans have either become unemployed or left the labor force since April." Those are signs of continuing economic deterioration rather than recovery, again 3 years after the recession began.
Finally, as Lott perceptively reveals, "The untold story that isn't being covered is how many Americans have stopped actively looking for work. At this writing, the number of unemployed plus those not in the labor force is at 99.83 million, just below 100 million and 10 million above what it was just two years ago. President Obama seems poised to claim the dubious distinction of breaking through that 100 million barrier."
The Failure of Keynesian Economics
The economy has continued to deteriorate rather than recover because from the beginning the recession was countered with the proven failed nostrums of Keynesian economics. That, again, is the doctrine that what promotes economic recovery and restores growth is increased government spending, deficits and debt. Hence President Obama's failed, wasted, nearly $1 trillion stimulus spending of February 2009.
The increased government spending and deficits are supposed to increase aggregate demand, which is supposed to stimulate increased production to meet that demand. It doesn't work in part because if the government has to borrow, or worse tax, $1 trillion out of the economy, spending that additional trillion back into the economy leaves the economy no better off on net. In addition, all that government spending doesn't do anything to change the fundamental incentives that really drive the economy.
Letter to the Editor
Peter Ferrara is director of entitlement and budget policy at the Institute for Policy Innovation, a policy advisor to the Heartland Institute, a senior fellow at the Social Security Institute, and general counsel of the American Civil Rights Union. He served in the White House Office of Policy Development under President Reagan, and as Associate Deputy Attorney General of the United States under the first President Bush. He is a graduate of Harvard College and Harvard Law School. He is author of The Obamacare Disaster, from the Heartland Institute, and President Obama's Tax Piracy.
Huzzah, Peter, Huzzah! Your calls for impeachment of these leftist beuracrats is the call for the end of strangling our country and it's people. Many small businesses are absolutely drying up. Hanging on by a thread, many are very close to closing up because of the lack of customers who are spending. The election in November was a shot over the bow but any conservative who thinks that the Democratic Socialists of the liberal elite will bow to reason is common sense is sadly mistaken. They mean to fundamentally transform our country and we must take it back!
Yet the reason you lost in 2008 is you lack the cohesion you enjoyed in the '80s.
So what? What in blazes does your remark have to do with TennVol's comment? You might try explaining why YOU lost in 2010. And give us a shout in 2013 with your analysis ...
All this talk of left or right, Liberal or Conservative. What happened to class struggle and discourse between the have's and have's-not? Keynesian economics also states government has the responsibility and the duty to ensure the spending is regulated. IE: it goes where it most needed and most beneficial with transparency and accountability (not the bankers pockets). There is no distinction between Liberal or Conservative in this regard. What we have is a distinction between right and wrong (morally, politically, and economically). If people want things to change, get out and vote (current voter turnout is abysmal)- or better yet, run for political office. This is especially true at the municipal levels. Reparation will be from the bottom up, not the top down.
"Reparation will be from the bottom up, not the top down."
Yours' is new age marxism: Toffler meets Trotsky. I am increasinglty surprised how gullible so many are; it's the timeframe, to change things takes enormous "amounts" of time (almost as if time is a commodity such as pork bellies!) KJ, if you want to be gullible, that is your business, however I choose not to share that aspect of you. You will say "we have to start somewhere", but you don't know what the "start" is heading to; that is to say the trajectory is all too open-ended. However if you feel reparation must be from the bottom up ('fads are top down, trends are bottom up'), you are saying we must struggle like marxists being the vanguard in a self-sacrificing class war. But go right ahead, storm the barricades; you can be in front of me taking bullets; because the vanguard is to be sacrificed-- so there is no reason for you to reply to this comment.
What is there to say?: "Power to de peeples"?
...PS "If people want things to change"
That's the point, perhaps the 'people' don't really want change.
ours' is new age maamounts" of time (almost as if time is arxism: T change things takes enormous " commodity such as pork belliesoffler meets Trotsky. I am increasinglty surprised how gullible so many are; it's the timeframe, to!) KJ, if you want to bhave to start somewhere", but you don't know what the "start" is heading to; that is to say the trajectory is all if you feel reparation must e gullible, that is your business, however I choose not to share that aspect of you. You will say "we be from the bottom up ('fads are top down, trends too open-ended. However are bottom up'), you are saying we must struggle like marxists being the vanguard in athe vayou can be in front nguard is to be self-sacrificing class war. But go right ahead, stormto de peeples"? the barricades; of me taking bullets; because sacrificed-- so there is no reason for you to reply tWhat is there to o thissay?: "Power comment.
I'm not here to get into a dogmatic argument. I'm part of the so called middle class. (This presumes there is an upper, and lower class). I'm not big business (I have 22 employees and feel responsible for 22 employees, 16 wives, 4 girlfriends, and 28 children...(at last count) not including cats, dogs, etc.) I take an avid participation in local politics, thereby (hopefully) helping to ensure the viability of my business and thus the livelihood of my employees and their families. I'm convinced this translates into bottom up political pressure with regards to regional and federal levels of government. I would love to get away from the Us and them, left and right dogmatism and get on with the real issues...jobs, sustainable monetary system (whatever that is), government transparency and accountability. This can be broken down to many levels: ie: Jobs on the continent, specific states, localities...checks on speculation in monetary terms (pay taxes on what you make...esp those making above 6 figures), I could and can go on. Changes to electoral system, not only making it easier to vote, but also encouraging independents to run. More independents. Independents give rise to increased exposure to local issues, and (in my experience) greater voter involvement. Maybe I am already in the vanguard (if you want to quote Trotsky). I don't see it that way. I'm trying to do what is right for my family, the families I support, and the environment we live in. The environment they will inherit. If I am taking bullets, it is from people like yourself that need to stop the dogma and engage in civil conversation so that we can take that conversation to higher levels.
PS: Who is gullible or accepted...who is good or evil...who is right or wrong. If I am biased, it is on behalf of the middle class and those striving to be a part of it. I would like to see politicians with the same bias.
You're right Billy. That was a really dumb statement. I had to write something. I'm a lozel, you know?
Of course Nancy Pelosi, Joe Biden, and John Kerry are going to tout these type of economics, is because they already have theirs. They're multi millionaires and the rational is. "Hey we can afford to experiment, but just not with our money, we'll use the taxpayers." The very economic system they rail against is the exact system that allowed them to be millionaires and the one sided tax code in this Country. Obama, will have come to Washington without a pot to piss in or a window to throw it out of, and will also leave a multi millionaire. I'm not against people becoming millionaires, it just the fact that Obama and the gang don't want anyone else to either. I guess they're attitude is that if there was too many Americans being millionaires then there wouldn't be a demand for Fascist elitist snobs would there?
Well then see if you can replace the effete GOP with a vibrant Tea Party-- if you have what it takes to pull it off.
Yes, we will see, won't we? but maybe you should be worried that no matter what the Tea Party does in the future, what they HAVE done to date is eviscerate you. Be afraid, be very afraid :))
Mr. brooks: We tire of your antics. I'd say you love to hear yourself talk, but I guess, in this forum, you must love to see how frequently and blatantly you can make a complete fool of yourself. Don't dispair though; you're getting better at it every day. In the immortal words of Forrest Gump: "Stupid is as stupid does." You're living proof. I think it's time you got a job and did something useful with your time.
Obama's intention is to collapse the entire economic and financial system and start over again. His hope is that this collapse will be such a calamity that he will be able to dictate directly from the Oval Office. There will be no need for the Constitution or the Congress any longer.
What the hell do you think he meant when he said, "we are going to fundamentally change this country"? Read his books; look at the people that he has surrounded himself with and look at his family. Who they were, what they believed in and how he was trained.
"former House Speaker Nancy Pelosi" That has a nice ring to it, kinda like former president obami.
Salboter, this woman is a Franciscan fascist snob, and they don't go quietly into the night with dignity. This woman will continue to wreak havoc on our economic system and system of governance. She'll be twice as deadly as she was as Speaker, now she can wreak havoc behind the scenes for the stuff we don't see. This woman and those like her need to be removed from Washington D.C. one way or another.
Yes, it does have a 'nice ring', but not nearly as nice as: "Disgraced, impeached, indicted, and convicted former president obama." Works for me.
The three "Fools", obama, reid, and pelosi, can't be that stupid, they are evil and their actions are intentional. As you said, "They have theirs", probably safely off shore in gold, and they are gleefully punishing the country they hate. Impeachment is too good for these people, and not even an option for pelosi and reid. I like conviction and prison.
Yeah, I kinda' like it.
Con Spiracy
EXCELSIOR!
It is time to throw the class warfare back into Obama's face and and give the American people a choice: Our regrowth or our destruction ? Obama's policies will mean our destruction. And expalin in very simple words how the SPENDING will hurt us very soon !!!!!!!!!!!
Thanks again , Peter for keeping us informed and for doing it these past 2 years. What the present leadership is doing to this country and to us a free people is downright tragic....all of it against our will! We need to look into IMPEACHMENT of "THE MINIONS'"....also ASK the Number UNO important question...WHY are you destroying the economy of this NATION on purpose? Those in POWER need to answer...hopfully under oath, and in a public hearing. There is no way they should be allowed to RULE by decree. My God , it.s going to take years to unravel this destruction. I for one , am praying for these NEW and OLD members of CONGRESS!!!
Peter, Again, thank you for laying it on the line. Please, Sir, grab a copy of "The Last Centurion" by John Ringo. It is nothing short of a nightmare of prophecy.
I also want your help. I have written an E-book, and the sequel could really use your expertise....and help our country as more and more people download it. Contact me at sales@texassaidno.com and I will send you a review copy. Thank you again for raising awareness of the issues so clearly.
Best regards
ken -
i picked up the book on your recommendation and read it twice. it's a great read.
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