Even the Associated Press has finally wised up to and admitted the downside of the Obama administration's fumbles in making our economy worse. You know it's bad (and common knowledge) when the mainstream media finally has to put it into print:
...Many health care stocks are down because of fears of new government restrictions and mandates as part a health care overhaul. Private student loan providers were pounded because of the increased government lending role proposed by Obama. Industries that use oil and other carbon-based fuels are being shunned, apparently in part because of Obama's proposal for fees on greenhouse-gas polluters.
Makers of heavy road-building and other construction equipment have taken a hit, partly because of expectations of fewer public works jobs here and globally than first anticipated.
"We've got a lot of scared investors and business people. I think the uncertainty is a real killer here," said Chris Edwards, director of fiscal policy for the libertarian Cato Institute.
(My bold.) Wow, the AP is finally writing about the unintended consequences
of the Obama administration's anti-enterprise, business-killing
, people-squeezing policies. I think only the Obama administration and the people who blindly and ignorantly voted for him as a saviour/historical messiah/non-Bush antidote are surprised about any of this. The market, on the other hand, comprised of people who actually understand economics, could see what was coming since before election day, and has reacted accordingly
. The market documents expectations, and with Obama in charge, proving to be as radically progressive as he'd promised, expectations aren't good. The rest of us Americans who didn't vote for this are dismayed, and still trying to minimize our losses as best we can, looking after our own interests and those of our loved ones, in the face of promised and impending massive, wasteful, and unutterably foolish big-government intervention, unsought and unwanted, in our lives.
The AP article ends up with this:
Allan Sinai, chief global economist for Decision Economics, a Boston-area consulting firm, said the complexity and enormity of the crisis make it hard to solve.
"There's no way to get it all right, regardless of which president is making policy," Sinai said. "The problem is the sickness got too far. The actions taken, medicine applied, were mainly the wrong actions. So it's just worse, and it gets harder to deal with. At this stage, there is no easy answer, no easy way out. It's a question of how we fumble through."
Yeah, there's no way to get it all right. But Obama and the Democrats have repeatedly made huge business-killing missteps (or, as some say, purposely business-killing steps)--and even purposeful charity-killing missteps or steps--as part of their avowed agenda. Whether ignorantly or purposely, or both, they have made a recession infinitely worse.
I am not just here to snipe. I have proposals that could get the market going again, if anything could. If President Obama and Congress were to telegraph the enactment of any of these proposals, the market would be shooting skyward within days, if not immediately:
1. Rescind the stimulus/porkulus bill. Pass barebones legislation without any
earmarks, big enough just to fund the government and keep the lights on, under the same budget as in 2008. Freeze all departmental budgets at 2008 levels. Announce that all Federal budgets will be cut five percent each year, starting in 2010, until the budget is balanced and the deficit is paid off. Announce that the President will be going through all legislation, line by line, to veto any earmarks by both parties (and somehow get us to believe that he means it). Freezing government spending is no different than what many state, county, and local governments, school districts, and individuals and families are having to do in the current recession. We the people are cutting spending and tightening our belts and so should Uncle Sam. If Obama really wanted to make a splash, he could recommend that he and every Congress person and Congressional staff member now cap their salaries at a 10-20 percent reduction, and cut staff employees by five percent. And why doesn't Congress vow to prohibit their members from flights on private and military jets? After all, this is a time of sacrifice for everyone, and politicians should take the lead
2. Announce that there will be no more government bailouts of failing private companies that are not FDIC-guaranteed banks. That means let GM go through bankruptcy, get restructured, and start producing again, like Delta and Northwest and other airlines have done--and like large and small businesses do all the time in a dynamic free market. The case of bailing out AIG as "too big to fail" and a key player threatening a systemic collapse including millions in teachers' pension funds may be debatable--but failing bloated, unproductive companies like the Big Three automakers should no longer feel entitled or welcome to hie to Washington with their hands out. Make this policy firm and known, and Americans will no longer feel their hard-earned money is being squandered by Washington on favored-insider losers. All, big and small, should look to the market and their own decisions, not Washington, for success or failure.
3. Reduce the corporate tax rate to zero. Abolish the inheritance/death tax.
4. Abolish the complicated and punitive current income tax system and the IRS (this will save a lot of dough) and enact the much simpler Fair Tax
(national sales tax) to fund the Federal government. The same amount of revenue to Washington is projected under the Fair Tax (i.e. it is a proposal that is revenue-neutral)--except that business and spending will be so stimulated, and investment in the U.S. as a tax haven from around the world will be so encouraged, that total tax revenues will actually increase (remember the Laffer Curve?), while individuals will pay the same or smaller taxes as they do now. Meanwhile, all citizens will receive a monthly check from the government reimbursing them for the cost of the tax on the basic necessities of life. So that the poor will in effect remain untouched by having to pay any Federal taxes. And the middle-class and wealthier citizens will have a much simpler, much more stable and fair tax obligation they can count on and plan on. (Read the details
before you knock it.)
5. Repeal all minimum wage laws. Let individuals voluntarily contract between themselves for what needs to be done. The immediate and beneficial result of this action would be immediately increased employment, particularly within the poorest sectors. The self-protectionistic unions would scream, but young and unskilled workers getting a chance to earn money and learn skills and prove themselves on the job would benefit from businesses now willing to take a lowered risk on hiring them.
6. Repeal all Federal restrictions on energy development and exploration. Let states and localities, in conjunction with business, be the decisionmakers in allowing offshore or in-state drilling for oil or development of nuclear or alternate energy sources and facilities. Let the market determine the viability of projects and innovations, not the wasteful, partisan, and stupid "central planners" of the government bureaucracy.
I've got lots more ideas, radical ideas for hope and change
, but these few first ones would get things humming within a week, once people really believed they were happening. I'm just a housewife, but even I could jumpstart the economy better than Obama and the Democrats could or would ever want to do. Because jumpstarting, growing, or protecting the health and success of the U.S. economy is clearly not their main priority
. They don't really trust the American people with real freedom, the freedom to grow and fail, the freedom to be themselves and live their own lives and find their own success, apart from politicians.
The main priority of the Obamas and the Democrats lies in forcing a nation's people to live under their thumb, under their power and control, and under the whip of their failed and phantasmal ideologies--because they think they know better than we do what's best for ourselves and our families.
And so the market continues to tank, and distress stalks more Americans. How long before people wise up and stop just assuming that liberals are the "compassionate" ones, when it is precisely their avowed policies that are doing all of this damage?
Labels: free market economics, hope and change, reinvigorating the economy