Posted by: Sanity Rules | July 3, 2008

The Obama Plan: Jumpstarting the Economy or Euthanizing It?

When Barack Obama first started to look like a serious contender for the Democratic Party nomination, I took a look at his website to see what his positions were.  I was not surprised to find that most of the “Obama Plan” is just not in touch with the realities of the world we live in.  Don’t take my word for it, let’s look at it in detail a bit at a time:

Barack Obama’s Plan(Obamanomics #101)

Jumpstart the Economy

  • Provide Additional Tax Rebates to American Workers:The economy has continued to weaken significantly, despite congressional action to provide immediate tax rebates to American consumers. Barack Obamabelieves as working families continue to bear the brunt of our economic downturn that we need to enact another round of immediate tax relief, $300 per family, to help maintain consumer spending, strengthen the economy and ease the squeeze so many Americans are currently experiencing. Stimulus: $20 billion.


The Bush “Economic Stimulus” give away is already a failure because it did not address the root problem with our economy.  The Obama Plan simply adds to this folly because everyone loves free money, free money helps get politicians elected.  If Obama had a real plan, he might suggest ideas that would actually solve the problem and not just ease the pain of the symptoms.

The problem with our economy is NOT that we do not have an extra $1,200 or $1,500 to spend on beer and cigarettes.  This economy is down because of 2 main problems.  First the Housing market went sour.  2nd our currency is losing value.  The loss of currency value plays a large role in the current price of gas.

When the housing market went sour, builders stopped building houses and the workers building the houses stopped buying new pick-ups, Plasma TV’s and even the local convenience store lost it’s market. 

After work, the construction crews still had some money for the essentials like Beer and Cigarettes, but they no longer had any discretionary spending for impulse items like Milk, bread and Diapers.  Like they say in construction, shit rolls downhill, so when a large portion of our economy suddenly finds itself out of work, all sorts of other industries were affected. 

Obama’s additional 20 billion (or $300 per-person) is money down the toilet.  Much worse, instead of benefiting the producers in society, it would reward almost everyone regardless of their own individual efforts.  The Robin is just a bird, but it does not teach it’s youth to wait for worms to jump in their mouth, but to fly and catch their own worms.

The solutions to our current economic problems are not only within our grasp, but have been modeled before with excellent results. 

At the end of Jimmy Carter’s presidency in 1980, we were suffering from 21% mortgage interest rates and a 10.8% unemployment rate. This nation turned itself around quickly by implementing sound economic policies.

The economic policies of Ronald Reagan ushered in a 20+ year period of prosperity and job growth. 

Maybe it is time to re-study Reagan, but instead the Obama plan is to reimplement Socialist regulation and government intervention that only leads to economic collaspe. 

In the following days we will look into Obamanomics more thoroughly.

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Responses

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