More than anything thing else, President Obama was elected to 'fix' the economic problems that erupted last summer. People, wary of McCain's financial credentials and fearful of economic meltdown, were willing to give the junior senator from Illinois a chance to prove his case. Obama promised several things that would bring the economy back on track. He promised tax cuts, a stimulus bill, and an accomplished economic 'Dream Team' that would right the staggering economy and make our nation work again. However, his 'Dream Team' is instead giving us brutal economic nightmares.
The four major members of his economic team are Larry Summers, Christina Romer, Peter Orszag, and Tim Geithner. They have been front and center in both the production and publication of the economic plan put in place for this crisis. Each of them are highly educated and talented people. However, they have created a crisis even bigger than the one they inherited. All this because they have assumed the wrong things are harming the economy. Instead of looking at the crisis clearly, they have adopted bizarre fixes to peripheral issues.
Larry (The Misogynist) Summers argues to fix the long-term financial health and job sectors we must send kids to college, cap-and-trade CO2 emissions, and nationalize health care. Huh? How will these things help banks and financial institutions recover? In a speech before the Brookings Institute he said "It is tempting to suppose that as some argue the focus of
economic policy at a moment like this should be solely on achieving
economic recovery." Of course not. How silly of me. We should not be focused on economic recovery but socializing medicine, limiting imaginary causes of imaginary climate changes, and indoctrinating children. Those are sure fire ways to 'fix' the economy. This plan was never intended to fix anything. It's a bold, fresh lie.
Christina (Pollyanna) Romer, an economic historian, argued at the Brookings Institute that FDR, with his plenary programs, didn't do enough borrowing and spending to make much of a difference in the economy in the 1930's. In spite of the fact that his programs required massive borrowing and make-work jobs, the economy floundered and sputtered for ten years. In fact, it was when he raised taxes by creating the Social Security system that the house of cards he'd built fell down in the '1938 recession within a depression.' Romer proposed the millions of make-work jobs weren't enough to stimulate the economy so the Obama administration would do so in a bigger way. "The fiscal stimulus package was designed to create jobs quickly. In doing so, it should lower the faults and improve balance sheets so that our financial system can continue to strengthen." But, the stimulus package creates so few jobs there has been no positive impact on the job market. By Romer's own standards, the almost 800 billion dollar boondoggle won't work. Instead of creating jobs and stimulating demand, the stimulus bill simply pays off Democratic interest groups and sops up capital further limiting real economic growth. Her slight-of-hand card trick is a ruse. She urges Keynesian policies but then defends this giant non-Keynesian plan.
Peter (Babyface) Orszag is director of the Office of Management and Budget. He believes the federal government is a much better financial planner than the common folk are. He argues the more the government collects, the more the government can give. On George Snuffalupagus' This Week on ABC (All Barack Channel) he said "either you're going to look at what -- what is collected through the tax code and what's returned through the tax code." For him, financial matters are best decided in Washington instead of Peoria or Edina or Mesa. The federal government should collect as much money as possible and then mete out what you deserve to get. It's simple really. However, how this will create wealth or grow an economy is absurd. It is just a giant power grab by bureaucrats who want to direct your decisions instead of allow you to make your own choices.
Finally, our beloved Treasury Secretary Tim (Tax Cheat) Geithner flew off to China after trying to sell bonds and getting little to show for it. He believed he'd be able to get the Chinese to open up their pockets and fund an 1.8 trillion dollar budget deficit that explodes our lending system. However, he came up against a savvy audience who isn't falling for his argument. The Telegraph reports, "speaking at Peking University, Mr Geithner said: "Chinese assets are very safe." The comment provoked loud laughter from the audience of students." Uncowed by the Anointed One's reputation, people who are clear-eyed and objective saw through Geithner's idiotic statement. These deficits and the debt it creates are unsustainable. Bond markets are considering for the first time to downgrade the U.S. government's rating. The Artful Dodger can't catch a break. He's trying to fund this house of cards and no one is believing it.
There is no real attempt by this administration to 'fix' the economy. His 'dream team' is a bunch of political hacks who are unable to stand on their wobbly legs and generate a cogent argument of how these plans will work. That is because there is no economic plan. They have social programs, not economic programs, and those will simply drag us deeper into a longer, more prolonged economic funk. Our nightmares are only beginning with these four stooges in place.