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Report: BHO Causing US Depression

From the UK’s Telegraph:

Barack Obama accused of making ‘Depression’ mistakes

By Edmund Conway
6 Sep 2009

His policies even have the potential to consign the US to a similar fate as Argentina, which suffered a painful and humiliating slide from first to Third World status last century, the paper says.

There are "troubling similarities" between the US President’s actions since taking office and those which in the 1930s sent the US and much of the world spiralling [sic] into the worst economic collapse in recorded history, says the new pamphlet, published by the Institute of Economic Affairs.

In particular, the authors, economists Charles Rowley of George Mason University and Nathanael Smith of the Locke Institute, claim that the White House’s plans to pour hundreds of billions of dollars of cash into the economy will undermine it in the long run. They say that by employing deficit spending and increased state intervention President Obama will ultimately hamper the long-term growth potential of the US economy and may risk delaying full economic recovery by several years.

The study represents a challenge to the widely held view that Keynesian fiscal policies helped the US recover from the Depression which started in the early 1930s. The authors say: "[Franklin D Roosevelt’s] interventionist policies and draconian tax increases delayed full economic recovery by several years by exacerbating a climate of pessimistic expectations that drove down private capital formation and household consumption to unprecedented lows."

Although the authors support the Federal Reserve’s moves to slash interest rates to just above zero and embark on quantitative easing, pumping cash directly into the system, they warn that greater intervention could set the US back further. Rowley says: "It is also not impossible that the US will experience the kind of economic collapse from first to Third World status experienced by Argentina under the national-socialist governance of Juan Peron."

The paper, which recommends that the US return to a more laissez-faire economic system rather than intervening further in activity, has been endorsed by Nobel laureate James Buchanan, who said: "We have learned some things from comparable experiences of the 1930s’ Great Depression, perhaps enough to reduce the severity of the current contraction. But we have made no progress toward putting limits on political leaders, who act out their natural proclivities without any basic understanding of what makes capitalism work."

You can read further views by the author of this report here, via the Telegraph.

(Thanks to Nuthingbettertodo for the heads up.)

This article was posted by Steve on Monday, September 7th, 2009. Comments are currently closed.

7 Responses to “Report: BHO Causing US Depression”

  1. nuthingbettertodo says:

    From the UK’s Telegraph:

    Barack Obama accused of making ‘Depression’ mistakes

    By Edmund Conway
    6 Sep 2009

    His policies even have the potential to consign the US to a similar fate as Argentina, which suffered a painful and humiliating slide from first to Third World status last century, the paper says.

    http://www.telegraph.co.uk/finance/economics/6147211/Barack-Obama-accused-of-making-Depression-mistakes.html

    • Rusty Shackleford says:

      Well, given Blammo’s keen interest in the tightest of facts regarding history (The car was invented in the US and the muslims gave us the compass, to name but two), is it any wonder that he and his court have wandered about turning over stones from the 1930’s? One easy explanation is that they have no clue of what to do in the first place. They are as immune to applied learning as they are from recognizing an IRS tax return.

      “Those who do not learn from history are condemned to repeat it”.

    • proreason says:

      They aren’t “mistakes”.

      They are the strategy.

      It’s working as planned.

    • Rusty Shackleford says:

      That may be, but I refer to them as “mistakes” in the sense that a swordsman parried when they should’ve thrusted. That is to say, they may be executing their plans, but with each new encounter, they are showing more and more of their hand and thus, I think, are defeating themselves. Not that I’m opposed to this. I’m all for it.

      As I’ve said before, when I find my enemy digging their own grave, I can think of no higher moral duty than to hand them a shovel.

    • Liberals Demise says:

      But first, let us ask the governors of all 57 States their opinions on Barry!

  2. proreason says:

    “His policies even have the potential to consign the US to a similar fate as Argentina, which suffered a painful and humiliating slide from first to Third World status last century”

    In all seriousness, this must be the intent of the Moron and his handlers.

    To have 20% unemployment (the true rate), and to concurrently demand the wealth-crushing Cap and Trade bill, and the econimic tsunami that Universal Health Care would inevitably be (whether you approve of it or not), can only result from a deliberate strategy to destabablize and destroy the most powerful economy of all time.

    Look, it’s the equivalent of having a couple of years of bad crops, and then deciding to ban plows and confiscating private farms. It might work in an alternate universe, but the chances of a disaster outweigh the potential rewards by about a factor of a thousand.

    So I don’t believe the intentions are good in any way. You might have been able to argue that about FDR, when the world had 80 fewer years of experience with Marxist failures. but not today, after the USSR fell, China abandoned Socialism, and dozens of 3rd world countries remain mired in socialistic poverty.

    This can only be a very deliberate strategy to destroy the United States of America.

  3. canary says:

    Obama is doing this destruction intentionally. Karma awaits him.


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