Wednesday, September 7, 2011

Obama's Big Surprise

You don’t need to be an economist to judge Obama’s big surprise tomorrow night.. There are just two main considerations: Tax cuts of any sort are just fine. Gov’t spending is at best a wash.

The masses fell for the first "stimulus" because both history and economics are a bore, at least to most folks. This allows individuals like Obama and his co-conspirators to put one over. We don’t think even they ever believed that it would work. It was that they had to posture.

The US does not maintain a slush fund for "stimulus" money. Then where does it come from? From 1) taxes, 2) borrowing or 3) the Fed’s printing press. Taxes discourage business; US borrowing crowds out the private borrower; inflation hurts everyone. This is why FDR’s own Treasury Sect, Henry Morgenthau, told the Senate that he’d spent a ton of money and for squat. It didn’t work.

Oh, but then what did he know.

And if Obama cooks up a new regulation or two, witness this recent complaint from free enterprise: John Schiller, chairman and CEO of Energy XXI, said "if the government would get out of the way, from a regulation standpoint, and let us [XXI] do what we do good you'll see us continue to hire and grow this economy."

Oh, but then what would he know?
 

Robert Craven

No comments:

Post a Comment