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  • In Pursuit of Failed Theories

    President Barack Obama in an op-ed published in the Washington Post makes several valid points. But the most important is his statement dismissing plans that “echo the failed theories that helped lead us into this crisis.” He’s absolutely right. Failed theories such as:

    • Government spending stimulates the economy. Federal spending in 2008 topped $3.3 trillion, up over a trillion dollars since 2003 alone. The federal budget deficit this year is expected to be $1.5 trillion or more, or more than 10 percent of GDP. If federal spending and deficits were stimulative, the economy would be on the verge of a massive overheating right now. Yet President Obama is encouraging Congress to spend almost a trillion dollars more.
    • Raising taxes on the most productive in our economy makes sense. Speaker of the House Nancy Pelosi has suggested we do raise taxes even as the economy’s recession deepens.
    • More federal intervention in the housing sector is the solution. Foolishness in Washington is bipartisan. Many Senate Republicans are pushing a policy that would vastly increase Washington’s role in financing home mortgages. Fannie Mae and Freddie Mac were not bad enough, we need to put them on steroids?
    • More government regulation of financial markets would have prevented the financial crisis. Many countries with far more onerous and often frankly more competent financial regulators than ours failed completely to protect their financial institutions, financial systems, or the investors and customers who relied on them.

    Successful theories, on the other hand, rely on the wisdom, energy and industry of individuals and businesses, not the heavy hand of government. Successful theories involve lower tax rates, less government spending, less regulation, and freer trade, policies that allow Americans to make the most of the opportunities before them and grow the economy in the process.

    The President began his op-ed saying the economic crisis is “deep and dire,” and that Americans expect from swift, bold and wise action from Washington. Right on all counts. And he concludes by saying “we have a choice to make. We can once again let Washington’s bad habits stand in the way of progress….Or we can put good ideas ahead of old ideological battles…” Unfortunately, the President has taken the road of failed policies and Washington’s bad habits. But his presidency is still new. There is still time to hope for change.

    Posted in Ongoing Priorities [slideshow_deploy]

    14 Responses to In Pursuit of Failed Theories

    1. Janet Lure, New Jers says:

      Do you have figures on the untaxed/taxed(if any) benefits of the President, our US Senators, and our US Reps? How do they compare to the private sector. Also, what would be the effect on the income tax revenue of states like NJ & NY if this income limitation were put into effect?–Thanks for being there.

    2. Pingback: Jason’s Blog » In Pursuit of Failed Theories

    3. richard weirton says:

      Maybe we just aught to audit all liberals, and make them start paying their taxes. That would be all the stimulus we would need!

    4. Scott Mansfield, San says:

      Change….Now We know

      Now we can piece together what president Obama means by change.

      He means: scrap 300 years of incremental improvements in -banking

      -steam cycle energy(starting with James Watt)

      -self government(via the US Constitution)

      -rule of law(via the US Constitution)

      Replace with sweeping mandates crafted by the supreme, anointed one, himself. —

    5. Ken in Santa Barbara says:

      Good question Janet. I am trying to get answers similar to that from california and SB county. Maybe the foundry can be a productive and informative source for those questions. What about it Foundry?

      In quoting the Foundry and trying to understand that "More government regulation of financial markets would have prevented the financial crisis is a failed theory, I don't see how your statement "Successful theories, on the other hand, rely on the wisdom, energy and industry of individuals and businesses" makes any sense.

      It was those very theories derived of business and individuals that led us to the precipice of political and economic failure. I think your diluting the greed and evasive tax maneuvering deceitful wisdom and energy of business and certain individuals and trying to get us simple folk to beleive that a fox loose in the hen house is a good thing.

      We have listened to the last 20 years of pitching liberal demise and conservative assurance. This tripe of failed THEORIES isn't close to the reality that is the reward of greed and elitism. The lying and cheating of the "individual" and "business" has been seen and heard. We are now poised to bring the middle class back into the mainstay of this republic. I leave it to the readers to realize the difference between the middle class they picture and the the imagery politicians and the "right" press would have them wallow in. It's not just the money but simple happiness and time to spend with friends and family that is our middle class measure.

      The success of this rag has been the hatred of proactive and forward thinking conservative thought and disguising the rape of the middle class as a liberal "progressive corporatism" takeover. What makes factions of a desirable and peace loving society want to destroy one another? Press such as the Foundry?Perhaps I should say Press such as the Foundry! What gives the members of that society hope? The last sentence and perhaps the most important sentence in this misalligned politically motivated economic screed of the Foundry….."his presidency is still new. There is still time to hope for change". It will take more courage to stand beside the newly elected and help gather the momentum of the Foundry's recognition for a change and I quote the author Mr. Foster "Washington's bad habits" than hide behind the skirts of deceit and hatred making faces and crying foul and poor "me".

      I accept the right of the press to pitch it's point and therefore of the Foundry to set type. I would hope for less infect and more affect.

      We must choose wisely in what we realize and want for "our" country and not put in with the camp of delay or hopes of failure. If we don't want or accept the theory of change…..call it unity and work to unite ourselves for the best that "we" can be. We are not at our best fighting each other. We'd rather be fly fishing, sailing, reading, farming, laughing, happily debating and playing with loved ones and each other.

      Mr. Wierton where are you coming from?? What in that article prompted that? Is that a failed theory also? Please join this discussion.

    6. Marshall Hill-Michig says:

      How does this President of two weeks know what

      shape the Economy is in! Why is he in such a big

      hurry to Pass something that has Far reaching

      consequences for years to come! And why are we throwing more money on the Fire?

    7. Jeff, Ohio says:

      I have to wonder how much money the government could save if we put all the senators, representative, and their staff on no more than $5.00 above minimum wage and the same health care and and retirement plan (Social Security)that most of the rest of us have?

      How fast do you think they will fix SS?

      I've been wondering just how does one "spend our way out"? If I told my wife I was going to spend our way out of debt, she'd kill me!

    8. Pingback: Obama’s Politics of Pork and Fear | Mr. Conservative

    9. Edwin Buck says:

      These economic theories have been tried time and again, but the results are the same. What makes the liberals in the senate and congress think that the results will be different this time? This has been the problem with our politicos, if a law they passed didn't do the work that it was supposed to do, then maybe another similar law passed will be different. I think the government should out of economics, auto industry, banking and any other industry they wish to take over. Let them do what they do best, screwing things up.

    10. Pingback: Obama and Failed Economic Theories « Veracity Not Mendacity

    11. Michael Smith, Cave says:

      In reading the list of items that make up $105 billion Democratic recovery bill deductions, I realized that no one that has ever lived has the time in their life or the mental capacity to comprehend the what or where all the appropriations are for. Not a single elected official has any idea of what they are approving, so what is it that compels them to back something they don’t understand? They are backing a plan which has no specific immediate objective to help restore the people’s confidence in the economic system and more specifically the government. We surely can’t depend on the financial sector for any guidance as they are the ones with the cooperation of the federal government that placed us in this situation. Is it wise to back a spending bill that will ultimately create more money and lead to the devaluation of our currency? Over spending and borrowing is the root of our problem and these fools continue to do what they have always done, spend fiat money that doesn’t exist. Americans are doing instinctively what all people have always done when they perceive a decline in income. They tighten their belts and conserve their resources until they see that things are returning to normal. Could the solution be to let the bubble deflate to a more normal state in lieu of inflating it with un-productive government spending?

      We are hardwired to do certain things to protect ourselves; committing all of your resources to produce an unknown outcome seems contrary basic instincts. There are those who say that we don’t want to repeat the mistakes made almost 70 years ago, but the lessons of history become irrelevant when the circumstances change.

    12. Jan, California says:

      There is a crises of red tape in the foreclosed housing sector. There are buyers for the properties…they just cannot get timely responses to their offers to buy. Some take months to respond. The banks need to spend some of the "bailout" money on hiring unemployed escrow officers and clerks to process the paperwork. Foreclosed properties languishing on the real estate market are driving prices down further. Would be nice if the senators and respresentatives were more concerned with whats really going on at the local community level rather than the political posturing that is going on in Washington DC.

    13. John, Richland, MI 4 says:

      When people vote based on personality and "good looks" rather

      than on character and ability, who is really responsible?

      The Government is like an indulgent parent breeding irresponsibility and lack of accountability. So what is the

      consequence of such an unhealthy system? Possibly, the Fall of the United States.

      If our Country learns from its great mistakes, we may again

      develop a Reaganistic society. I'll put that on my wish list.

    14. Pingback: Some Sanity But Is It Too Late?

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