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Obama: Only The Gov’t Can Fix Economy

From an elated Associated Press:

Obama warns of dire consequences without stimulus

By JENNIFER LOVEN, AP White House Correspondent

FAIRFAX, Va. – President-elect Barack Obama warned of dire and long-lasting consequences if Congress doesn’t pump unprecedented dollars into the national economy, making an urgent pitch Thursday for his mammoth spending proposal in his first speech since the election.

"In short, a bad situation could become dramatically worse" if Washington doesn’t go far enough to address the spreading crisis, the Democrat said as fresh economic reports showed an outlook growing increasingly grim…

The president-elect cast blame on "an era of profound irresponsibility that stretched from corporate boardrooms to the halls of power in Washington." But he added, "The very fact that this crisis is largely of our own making means that it is not beyond our ability to solve." …

Obama laid out goals of doubling the production of alternative energy over three years, updating most federal buildings to improve energy efficiency, making medical records electronic, expanding broadband networks and updating schools and universities.

"It’s a plan that represents not just new policy but a whole new approach to meeting our most urgent challenges," Obama said.

Still, his remarks shed no new light on the details of his plan that could cost as much as $775 billion over two years in tax cuts and spending. And, he said little about the unprecedented red ink and rising debt confronting the government, even after spending days reassuring the public and Congress that he is committed to tackling long-term deficits after the economy rebounds…

It was the fourth day in a row that he had made a pitch for a huge infusion of taxpayer dollars to revive the sinking economy he will inherit from Bush.

Throughout his remarks, Obama painted a stark picture, including double-digit unemployment and $1 trillion in lost economic activity — that recalled the days of the Great Depression in the 1930s…

Speaking a day after the release of a stunning new deficit estimate — that the federal red ink will reach an unprecedented $1.2 trillion this year, nearly three times last year’s record — Obama acknowledged some sympathy with those who "might be skeptical" of the stimulus. Vast sums already have been spent or committed by Washington in an attempt — largely unsuccessful so far — to get credit, the lifeblood of the American economy, flowing freely once again…

To answer their concerns, he promised to allow funding only for what works. He also pledged a new level of transparency about where the money is going. A day earlier, he promised to tackle the out-of-control fiscal problem posed by Social Security and Medicare entitlement programs and named a special watchdog to clamp down on all federal programs.

Obama made broader arguments, too, saying that the private sector cannot do what is needed now.

"At this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe," he said.

Obama also promised action to address the economy’s ills beyond the package, such as tackling a potential wave of home foreclosures, preventing the failure of financial institutions, rewriting financial regulations and keeping accountable the "Wall Street wrongdoers" who engage in risky investing.

Not only is Obama wrong, but he knows he is wrong.

But this is not about fixing the economy. This is about growing the government and advancing socialism.

Just like he promised us.

This article was posted by Steve on Thursday, January 8th, 2009. Comments are currently closed.

28 Responses to “Obama: Only The Gov’t Can Fix Economy”

  1. curvyred says:

    “Lack of oversight” has not gotten us into this mess , in fact it was the Democratic Social Engineering and feel-good policies (CRA) that caused this problem.

    I have said it before and I will say it again:

    The difference betwen liberals and conservatives is one of pessimism vs. optimism. Dems should rename themselves the DOOM AND GLOOM party.

    • JohnMG says:

      Would that make them the DOG party, Red?

      Not a bad fit. Most of us already regard them as a sorry bunch of SOB’s.

    • curvyred says:

      DOGS seems very fitting – although I happen to really like dogs they are loyal and smart – let’s find another acronym.

    • JohnMG says:

      Your objection is well noted. It wouldn’t be fair to the dogs, would it?

      I’m up for a new acronym, but Hamas is already taken.

    • Liberals Demise says:

      FUBAR sounds appropriate.

  2. proreason says:

    Frow IowaHawk:

    “Barack Obama makes history as the first African-American sworn in as President of the United States; Invoking legacy of Franklin Roosevelt, promises America “nine years of economic depression, four years of world war, eventual nuking of Japan”

  3. proreason says:

    This is really all about permanently installing the American Aristocracy as a class unassailably separate from the rest of us.

    These huge tax burdens will be paid by workers like ourselves for generations. There will be no chance to accumulate wealth and threaten the Aristocracy of Kennedy, Kerry, Clinton, Gore and their wealthy liberal allies.

    The Aristocracy PAY NO TAXES. They have more wealth than they need and it is invested in Real estate and Municipal Bonds which are TAX FREE. They do not invest in risky stocks so pay no capital gains. They do not work and therefore pay no Social Security taxes.

    By imposing this massive new tax burden on people who must work, they insure that the unwashed will be permanently positioned at the bottom.

    Government regulation is part 2. The class that overthrew the old European Aristocracy was the capitalists, which today we call entrepreneurs. The new Aristocracy is not about to let these upstarts threaten their position. So we see….a) they fuel hatred of business people and lie about the benefits businesses bring to the country, b) they lie about the “income differential”, when in fact people who make a lot of income are the engines of the economy. The true parasites are the wealthy aristocrats themselves who DO NOT WORK or create value in any way. c) they harp constantly about the lack of regulations on business when we can clearly see that government intervention harms business and is the usual source of economic turmoil. d) they now intend to use Global Warming to further control the business, which they view as the enemy that must be controlled.

    The parasitic Aristocrats attack on business is the BIG LIE of our age. They created the economic crisis to destroy business and the wealth of the upstarts so that there can be no threat to their control and so that they can never be displaced from their thrones. The aristocrats lost nothing in the economic crisis. They do not hold stocks and have no jobs to lose. The prinicpal of their Municipal Bonds will be repaid, and the value of their Real Estate will recover in time (and it doesn’t matter anywaw, because they aren’t selling).

    The truth is that Obamy, Soros, Kennedy, Pelosi are parasites. They create nothing now or ever. The modern western lifestyle is only possible because the old European aristocrats were overthrown and a competitive business climate was able to prosper. Capitalism has created the wealth of the western world, not Socialists or Aristocrats under any name.

    Now through Obamy and this phantom crisis, they intend to permanently enthrone themselves with complete power.

    • DGA says:

      Well said Proreason, exactly on the money, no pun intended.

    • wardmama4 says:

      Not only that Proreason, but these are the very same people who screamed dynesty when GWB was elected. Who now have attempted and through the back door – re-installed the Clintonistas (i.e. revived that, dare I say it, dynesty) and are now attempting through the moroon state of NY – re-installing (and re-invigorating) the (*cough*)Kennedy dynesty (*cough*). Just when we thought that their own addictions, arrests and fatal illnesses had brought it (mercifully) to an end.

      These are people who are attempting in America to also harken us back to the ‘royalty’ and yes, aristocracy that they so belittle in Europe.

      And the stupid masses bought it – pretty lies, distortions and all.

      We The People need to stand up and say No.

      I wrote to all 3 of my ‘Representatives’ and said No – Don’t vote for this ‘stimulus package’, gave them a number of viable alternatives to stimulate the economy (mostly cutting taxes, earmarks and pork) and stated that Government isn’t the solution it is part of the Problem and that if 10% is good enough for God, it is good enough for the IRS.

      We The People can’t afford to wait until chaos and anarchy break out – or our economy is destroyed. We came together to shut down Shamnesty – we need to come together to shut down The One’s proposed Raw Deal (thanks Rush for that one). Now, not later.

      Otherwise, stock up on staples, lock and load – as the next 4 years are going to be he!!.

  4. Liberals Demise says:

    Someone nudge the Houseboy and let him know that it was the GOVERNMENT that got us into this mess in the first place!! Seems to me that nobody wants to find out who is responsible for this major screw up and invoke some jail time. I want the persons responsible for this to put outfront and hounded all the way to the pokey. They don’t deserve to sit on the throne of power and feel they are above the law; they aren’t!! Chris can watch Barney at the Saturday night mixers and pick up a few tips on how to chase men.

  5. TickTock says:

    If Obamy thinks we can’t drill our way out of an oil shortage, how in Heaven’s name does he think we can spend our way out of economic collapse?

    Of course he knows better than this. “Collapse” is what the libs want.

    And of course the “spending” will take place in the social-engineering arena, ie, education. A tax-payer funded investment in the future of liberal communism.

    As long as money is in motion, opportunities abound.

  6. pdsand says:

    In the spirit of 2000, I’d like to officially declare Obama an instant lame-duck President, and I want the Republicans to start running campaign ads for 2012 within the next two weeks.

  7. proreason says:

    “Barney Frank (D-Mass.) said Thursday that President-elect Obama’s stimulus plan spends too much money on tax cuts for his taste.”


  8. proreason says:

    How gov spending kept unemplyment at 25% throughout the Depression, from the Heritage Foundation:

    Check out the graph.


    But not a single government job was lost, and FDR demagogued his way to 40 years of Dem majorities. It’s not about the economy, it’s about power.

  9. Colonel1961 says:

    In BHO’s defense, you should, indeed, spend an economy out of a recession – it is the best method. However, I would do it through tax cuts or refunds to people who actually PAY TAXES, but that’s just me…

  10. U NO HOO says:

    After you lay off excess employees you work OVERTIME rather than (re)hire employees, at least until confidence returns.

  11. VMAN says:

    I know Bammy want’s to increase the size of the federal government but I’ve said it before and I’ll say it again socialism starts from the bottom up. We can’t fart in Florida without government regulation. When the government tells you how you will conduct every aspect of your business it ceases to be your business. Anytime government says something is for the public safety or “the children” bend over and grab your ankles. Then there is zoning!!! One city down here wanted all the people to paint their house the same color and have the same landscaping. This country is going crazy top to bottom and bottom to top!!!

  12. 12 Gauge Rage says:

    When the government says they’re here to fix things they really mean it. Unfortunately it’s never fixed right to begin with. The more power you give the government the less willing it is to relinquish that power. The only way for America to get out of this economic slump is to behave more fiscally responsible and to stop blaming everyone else for their problems.

  13. Virginia Shanahan says:

    Great article and so right on!

    If only the government can fix the economy then why is the economy not fixed after these massive bailouts? We just did this and no surprise that it failed.


    He told us he was going to do this throughout the campaign and people failed to listen. Now it’s time to pay the piper. For everyones sake I hope you have been doing your best to get out of debt because it’s about to get real ugly.

  14. proreason says:

    Proreason’s stimulus package:
    1. Eliminate capital gains tax for investments in businesses with payroll’s >50% in the U.S. This will encourage investment in U.S. businesses, which will allow businesses to create millions of new jobs. Standard Conservative fare.
    2. 1-year tax holiday on business taxes. Same purpose as point 1.
    3. Impose a 10% tax for the first year on U.S. resident’s (residents, not just citizens) estates greater than $25 million. Reduce this to 5% after year 1. The estates must include money held offshore or otherwise hidden. These people currently pay no taxes and do not invest in businesses. Their estates are inherited and the families do not work or create value. The top 50,000 families in the country control about $20 Trillion in assets so this tax will raise $1 Trillion in year 1. VERY IMPORTANT – this money must be used to OFFSET taxes paid by working people (no credits to non-taxpayers). It MUST NOT be used for inane government projects. This will allow $1 Trillion dollars to flow immediately into the economy which will create million of jobs.
    3a. The people who have this kind of wealth have armies of lawyers, so the penalty for non-compliance should be confiscation of their entire estates. The way to enact this is to create 10,000 private sector jobs which will be paid (after a substantial base) on a % collection basis.
    4. Immediately disband the Dept of Education. This department serves no useful purpose since it has been proven many times that federal spending adds no value to education. The money saved should be used to OFFSET taxes paid by people who pay taxes (no credits to non-taxpayers).
    5. Every week, the government must very publically provide a list of budgets and projects, and describe every item in 50 words or less that costs more than $10 million. The costs must always be expressed : a) in terms of what it costs a taxpayer paying $10,000 annually in taxes, and b) in terms of what it costs a taxpayer paying $50,000 annually in taxes. c) since small projects will show pennies per taxpayer, all projects and budgets under $1 Billion should also be summed and expressed in taxpayer terms.

    By the way, I am opposed to Class Warfare……but I’ve had it with the parasite wealthy elites who have taken control of the country for their own devices, and the serfs they have bribed with taxpayer money to vote for them.

    People who create value need to take the country back. Like Saul Alinsky says, we too should use the system to our advantage.

    • 1sttofight says:

      All your ideas are good.

      Another sure fire way to get the Fed gov in line would be to do away with withholding taxes.

      When folks have to write that check for $5,000+ to the IRS on April 15th there would be such an outcry (and probably an armed assualt) on DC that things would have to change.

    • Liberals Demise says:

      Very good and well thought out. I would also add that failure to provide said services would REQUIRE jail time for all politicans not following guide lines. A little time in Crossbar Hotel (not ClubFed) will tighten the ol’ spincter muscle and drive these out of control lawyers back into Line Step!! These cowards have got to be reeled in and told ” WHO IS THE REAL BOSS HERE!! ”
      Plus this gives your Stimulas Package teeth.

    • BillK says:

      The withholding thing would never fly.

      Recall the DTV transition must be delayed because people don’t have a “spare” $40.

    • proreason says:

      Thanks for the comments. I have sent this list (without the Class Warfare and Alinsky parts) to my congresspeople and will follow up later.

      A point of clarification on the 3rd item, which is taxing the estates of the wealthy. It isn’t just an “anger” suggestion. What the weathy do today is hide their wealth or invest in tax free bonds. Like us, they should be encouraged to invest their wealth in ways that help the economy, not just protect their estates. That is why I picked 10% and 5% for the amounts. I don’t want to steal their money, I want them to put it to good use. 5% is a good on-going number because that would inspire them to invest in equities instead of no-risk products. Since inflation runs at about 3% on average, they will have to take some risks if they pay a bit more than inflation. Of course, some people with access to good data ought to refine all of the suggestions. But whatever happens, it needs to be SIMPLE and ironclad, because complexity is what allows the elite’s lawyers to beat the system.

    • 1sttofight says:

      The tax withholding got started because they knew it was the only way to get the income tax scheme to fly.
      As far as the DTV thing goes, anyone who has bought a new TV in the last 10 years will have no problems.

  15. Confucius says:

    “President-elect Barack Obama warned of dire and long-lasting consequences if Congress doesn’t pump unprecedented dollars into the national economy . . . .”

    Where did I hear this before? Isn’t this one of Bush’s “failed policies?”

    I didn’t know “change” meant copycat.

  16. Liberals Demise says:

    Before one more dollar is pumped anywhere……..WHERE IN THE HELL did the first infusion of 350 Billion dollars go? What has it accomplished? Who is in charge of the books? As I know of today….noone can say exactly where it has gone or can they account for it!! They have the balls to ask for more without any oversight! This is utter BS…..whats gonna happen if we dont give them the $$$$$ immediatly? Why can’t we put someone in charge of seeing the money flow and where it flows? This is too damn fast and stinks like a political shell and pea scam. We have already been scammed by the Barney and Chris Horse and Pony Show. Now here comes Halfrican Smoke and Mirror parlor ploy. What is really needed is for us to find out the who, what, where and when of this scandel and fix it before we pump masses of money into the abyss.

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