Voodoo Economics, 2011 Edition
In 1980, George Bush the Elder was challenging Ronald Reagan for the Republican nomination for president. Bush referred to Reagan’s tax-cutting proposals as “voodoo economics” and the term was picked up by the media and Reagan was battered with it for years.
The term still is kicking around although it never is applied to whom it rightfully should be applied – Barack Obama.
Because “voodoo economics” under Reagan produced an unprecedented 91% increase in revenues to the federal treasury over eight years. It is a statistical fact. Go look it up. Meanwhile Obamanomics has produced sharply decreasing revenues to the treasury over the last two years and eight months since Obama was inaugurated. It has caused huge deficits, massive economic displacement and joblessness.
Because Obama is the one who truly is practicing “voodoo economics”. His repeated call for Keynesian (government) spending to create jobs is like taking water out of one end of the swimming pool (government money being taken out of the economy) and putting it in the other end and expecting the pool level to rise (economic growth). It ain’t gonna happen. It can’t happen. It has never worked and it won’t work now and it never will.
Here is a quote from Franklin Roosevelt’s Treasury secretary Henry Morgenthau talking in 1941 about years of heavy government spending for make-work jobs during the depression:
“We are spending more money than we have ever spent before, and it does not work. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started and an enormous debt, to boot.”
In his September 8 speech to a joint session of Congress Obama just repackaged his same old socialist ideas. The stock market plunged the day after, showing no confidence. Obama even said repeatedly during the address that Congress must pass his legislation “right away” and he said “pass this bill” over and over. Why the hurry? Why the urgency?
This is a standard liberal tactic. It is much like Al Gore’s insistence that we must pass his phony ‘global warming’ legislation quickly because otherwise the earth will die.
What these two really are saying is that they want immediate legislative action to entrench their potemkin policies before more and more people discover that those policies do not work.
In his speech, for example, Obama proposed:
*Hundreds of billions in new government spending to ‘stimulate’ the economy. Yet this stimulation failed in 2009, first because such policies don’t work. And second – and worse – because that 2009 money was directed primarily to unionized government employees to sustain them in their jobs.
But now in 2011 Obama says he wants to fix schools and bridges and roads. Yet he could have done that with the 2009 bill, but he didn’t. And he won’t this time either. This will become an Obama re-election slush fund, coming just one year before the 2012 election. And any Republican who agrees to it should be voted out.
*Obama said “Pass this jobs bill, and companies will get a $4,000 tax credit if they hire anyone who has spent more than six months looking for a job.” Yet this is classis socialist sophistry. Why would a business hire a new employee at, say, $30,000 a year just to get $4,000 in a tax credit?
No business would. This is truly ‘voodoo economics’. Because rational people know that business hires new employees when the economy demands it. Thus Obama’s $4,000 proposal is just a feint to make it look as if he is favoring private-sector job growth. He is not.
These are the types of quick-fix policies that Democrats always favor because liberals do not believe in or comprehend the long-term policies and conditions that will favor real economic growth.
*VoodooMaster Obama said “And there are schools throughout this country that desperately need renovating. How can we expect our kids to do their best in places that are literally falling apart? This is America. Every child deserves a great school — and we can give it to them, if we act now. “
Yet we all know that the Democrat teacher unions, who control these schools and who are Obama’s most ardent supporters, have stolen public education blind for decades with everything from plush salary/benefit/pension plans to early retirement. The average S/B/P package for a teacher in the failed Milwaukee public system is $77 an hour.
That is why the schools are in such bad shape – because mediocrity and failure are being rewarded. Now Obama wants the taxpayers to further subsidize these unions by paying to rebuild the schools. Very slick… Fact is there’s plenty of money in America’s $500 billion annual public education (K-12) budgets for school construction and renovation. Getting the Democrats to spend it on something other than themselves is another story entirely.
*Obama wants to continue a Social Security payroll ‘tax holiday’. Sure this sounds appealing and this is what we conservatives believe in the long run. But this is not what we need right now when we are running multi-trillions in deficits. What is this policy all about?
It is a gift from Obama to the middle class for his re-election in a Social Security system that already is deeply in debt to tens of millions of Americans. According to some estimates, the system owes current and future retirees $80 TRILLION. And that is money that it does not have at this time.
So rather than reform SS spending in substantial ways, Obama is simply calling for a temporary cut to the taxing. And without major spending cuts to SS, this ‘tax holiday’ is only leading to more debt.
Yet when conservatives talk about overhauling SS from top to bottom including cuts in the pay-in taxes, Democrats go berserk.
*Obama wants to extend unemployment benefits, making those benefits a permanent part of the economic order so as to create a new government-dependent underclass.
Here are two excerpts from CNN.com about the plan:
‘Obama is asking for $35 billion to be pumped into local communities to keep teachers and first responders on the job, while also allowing for some new hiring. Of that, $30 billion would go to educators, and the rest to first responders…. Obama wants to give hundreds of thousands of youth “the hope and dignity of a summer job next year.” The unemployment rate for youth ages 16 to 24 rose to a record high this summer.’
So this plan is just another giveaway to the teachers cloaked in the emotional rhetoric about ‘the children’. Second, his mention of “first responders” is a subliminal reference to 9/11, obviously a poll-tested phrase. And third, summer jobs for youth will reappear naturally once Obama policies stop strangling the economy.
In short, it’s all Voodoo Economics, 2011 Edition. And here’s the final falsehood from Obama’s speech:
“The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act. And a week from Monday, I’ll be releasing a more ambitious deficit plan — a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run.”
All nonsense. First, notice Obama said the word “Christmas” when his secular allies are seeking to banish the word from our lexicon. This is very sly, and a subliminal appeal to Christian voters and traditional-values voters. Second, the $1.5 trillion is not going to be “cut” from spending. It is going to be a reduction in expected spending increases that will probably amount to $20 trillion or more.
And the idea that we’ll just toss another few hundred billion on the deficit-cutting fire is pure baloney. It will never happen with these Democrats in power. Because in the real world, you cut spending by cutting the size of the checks being issued by the government, not refusing to do it today but instead promising to do it in the future.
Because that, friends, is the real essence of “voodoo economics”.