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  • CAP: The Country Needs More Bush/Obamaism

    The Center for American Progress’ Matthew Yglesias asserts that “George W. Bush was a terrible president” and that since “the end of his administration coincides with everything being in a sorry state” that “it would be appropriate to respond with new and different policies.” We’ll let history judge how terrible a President George Bush is/was, but Matt is right about one thing: our country does need new and different policies. Problem is the Obama temporary tax cut/permanent new spending stimulus plan is Bushism on steroids.

    Heritage predicted back in January that Bush’s tax rebate checks would not stimulate the economy, and we were right. Heritage fought Congress’ massive new spending this year, and none of that has prevented the recession either. A real change in policies would be to abandon all of the Keynesian ideas embraced by Bush/Obama. As Obama’s own new Council of Economic Advisers chair Christina Romer has shown, Keynes ideas simply do not work:

    [The Romers'] bottom line is that “exogenous” tax cuts–that is, tax cuts not intended to offset the business cycle–have a large positive effect on gross domestic product. Specifically, a tax cut of 1% of GDP will raise GDP by about 3%.

    The Romers’ research actually undercuts the Keynesian approach in a more fundamental way. They find that tax cuts to offset a recession are ineffective, but their reasoning would also apply to government spending increases to offset a recession. In other words, if she believes her own research, Christina Romer should be a strong critic of her new boss’s policies.

    George Mason economics professor Arnold Kling also sees a doubling down on Bush policies in Obama’s stimulus plans:

    Mark Thoma gives us Joseph Stiglitz and Martin Feldstein being interviewed by Charlie Rose. I listened to it last night, and I found it so chilling that it adversely affected my sleep. Two issues stand out.

    1. Both of them are keen on re-working mortgages. Neither of them mentions non-owner-occupied housing or any of the other issues that make re-working mortgages extremely difficult. At one point, Stiglitz says that banks may be postponing writing down loans because they are waiting to see what sort of bailout they might get from the government. But he doesn’t draw the obvious conclusion that government interference is the problem, not the solution.

    2. Both of them are keen on trying a big stimulus. Stiglitz says that everything done so far has been a failure, but again he doesn’t draw the obvious conclusion. Instead, he says we have to try something bigger and different.

    I was reminded of the Battle of the Somme, one of the worst policy blunders of all time. Having experienced nothing but failure using offensive tactics up to that point, the Allies decided that what they needed to try was….a really big offensive. Just as Feldstein and Stiglitz pay no attention to the on-the-ground the housing market, the British generals ignored the impact of machine guns on men advancing over open fields.

    Posted in Ongoing Priorities [slideshow_deploy]

    12 Responses to CAP: The Country Needs More Bush/Obamaism

    1. Pingback: Who are the fear mongers? « America, You Asked For It!

    2. Barb -mn says:

      It is clear to see, Obama does not want to put this country back on her feet as so many answers could be easily implemented overnight with natural resources and without GOVERNMENT. We will soon be broken down as a 3rd world. God Bless the USA for what she could have become: Everything she once was and stronger.

    3. khris Dundee, MI says:

      I believe every single polaticion should have to take a 20% pay cut for getting us into the mess we our in. we have all had to take cutes to save our jobs that is what we the people are telling them they screwd it up they need to fix with their moneys not ours.it is about time they gave back to this country!!!!!!

    4. WhiteSquare-ATL,GA says:

      Lets get down to the bottom line here, it's time for American citizens to snap out of whatever stupor we've all been in and go take a look in the mirror. Point your finger at yourself and say, it's your fault the country is in the shape it's in, wake up and take responsibility for your part in leading this country. Forget the president, the house, the senate, what are 'we the people' going to do? It's our responsibility you know. I was told this is America, am I wrong? It looks like some socialist snowball headed for hell. I'm beginning to think it's not possible for 'we the people' to deny our own selfishness and greed. That's what has brought us to where we are you know. Does anyone see that? I guess I am the fool that actually believed that a country could be run by it's own citizens. The jokes definitely on me. On the small chance that it could happen, that someone will actually read this and be moved in some way, I am saying wake up, get real, set a goal, and don't stop until you reach it. Quit relying on politicians in Washington, your state, and your local government to 'fix' things. It's your responsibility, it's my responsibility, 'we the peoples' responsibility to make plans, set goals, and make a great country to live in.

    5. Bill Dana NC says:

      If the politicians want to give out trillions of our hard earned tax dollars, give to every tax payer, and I emphasize tax payer, $100,000 and watch the economy come around. Give it out as Obama is pushing for we might as well flush it down the toilet. Doing it this way would cost us less. (not my idea but it makes sense to me)

    6. Richard, Texas says:

      I wholly agree with Bill. If we're going to spend our tax dollars, then let us spend it. With $100,000 given to each taxpayer, many of us could get completely out of debt and then use our hard earned money to buy goods and services. It is such a novel concept!!! Obviously, too complicated for Congress.

    7. WhiteSquare-ATL,GA says:

      Money is not going to solve the problems that we have. Money is not the problem. Our problem is the inability to govern ourselves. We have bought into the idea that we should let representatives make decisions for us. We should be planning how to solve problems ourselves and then send the messenger boys and girls (our representatives) to Washington to propose the plans. If your representative will not do that, find one that will. Ride’em with a set of rusty spurs if you have to. If you don't have the time or the rusty spurs, find someone who does. Have them burnin’ up the phone lines. It's time to wake up and take responsibility. Only 'we the people' can make this country into what we want it to be. Do you want socialism or worse? I like being able to live and work wherever I like. I like being able to take vacations wherever I like. I have hobbies that I enjoy. It's wonderful to get up on Sunday morning and go the church. It thrills my soul to be able to knock on someone’s door and share the gospel of Jesus Christ. These things are how I enjoy living life. Not hold up in some hideout hoping the SS doesn't find me and put me on a train to some concentration camp. We are already headed down that road. Let’s stop it now!

    8. Mike Sheahen, Hickor says:

      Hey! Didn't you know that, to Liberal/Socialist government elitists (which includes "Liberals" [which includes both Bush and Obama, just to two radically different digrees]), the inevitable failure of government elitist economic policies (including "the Keynesian approach") hasn't and cannot really happen, so the facts don't count.

      Remember: The difference between a "Liberal" and a "Socialst" is: A Liberal is a patient Socialist, and a Socialist is a Liberal in a hurry.

    9. Mike Sheahen, Hickor says:

      Hey! Don't we realize yet that to Liberals/Socialists, (including both Bush and Obama, just to two significantly different degrees), the failure of their government elitist economic policies have not and cannot really happen, and so the facts don't count?

    10. Chris Berg, Albuquer says:

      A hundred million Americans on the dole are like parasites on the private sector causing foreclosures, bankruptcies, unemployment, etc. You can't expect corrupt politicians who are elected by this majority to do anything but protect entitlements and pocket money for themselves and their political cronies. The political system is inherently corrupt. Only a mensunion.org can bring America back from the coming Greater Depression, crime, hunger, and fascist labor camps. See you on the soup-line.

      Best regards, Chris Berg

    11. Roy G Callahan says:

      Nice. Somebody beside me knows that history will repeat itself if you do not learn from it.

    12. Grace, Jacksonville, FL says:

      No money is not going to solve the problem. People have to get back to basics for their families and their country. I feel like we now have no voice at all. I’m fearful the government is just going to keep giving and giving making more people dependent on them and then it will be too late for this great country. I wish a good conservative voice was speaking out.

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