Predicting the Success of the Stimulus
“We have tried spending money. We are spending more 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!”
The above quotes are not from any current Talking Heads. They aren’t GOP figures or members of the Democratic Party.
Know who said them?
Henry Morgenthau, Jr.
He was FDR’s Treasury Secretary from 1934-1945. FDR’s version of Timothy Geithner (though I would bet he paid his taxes).
Our Commander-in-Chief has been channeling several of the greatest presidents in his policies – or at least his rhetoric. A number of hopeful parallels to Lincoln, and of course, there are the hopes of a New “New Deal.” Bad news – the New Deal failed. The Great Society failed. You know what DID work? Nixon’s tax cuts. You know what else worked? Reagan’s tax cuts (it went so well the first time, he did it twice!). You know what else worked? Bush-43’s tax cuts. Those four occasions are the four largest expansions of GDP in our nation’s history.
You know what didn’t work? Spending bills. They racked up debt that turned into tax hikes to pay off the creditors which turned into a shrinking GDP because we weren’t doing anything productive with our money.
When you run up your credit card bill, does your personal wealth grow or shrink? Are you buying stuff you want, or are you blowing your money paying for the money you already spent? Our President has run up the country’s credit card hoping it’ll help us, and it will, a little bit, immediately. But even in the short-term future, Visa is going to send a bill to 1600 Pennsylvania Ave, and Barack will have to start paying on it. Whether you have a credit limit of $500 or $800B, credit is credit is credit.
Okay – check out those quotes again. The guy who was responsible for how the government spends money and developing governmental monetary policy said, “Hey! This is a bad idea! Don’t do it!”
My parents always told me to learn from my mistakes. Shouldn’t that apply on a macro level? Shouldn’t our government learn from the previous screw-ups of our government? Why does every administration insist on reinventing the wheel and trying to convince us they aren’t going to mess everything up as bad as the last guy? It’s becoming the commonly accepted norm.
So – Mr. Obama, read ALL of the history of the people you want to channel, not just the stuff that plays well in the media. You might learn something more useful than some new tricks for your 2012 campaign (which it appears you’ve already started).