President Obama’s Policies are Destroying the Economy and Transforming the Country in a Bad Way

Posted by PITHOCRATES - September 7th, 2013

Week in Review

Is President Obama the worst president ever?  Perhaps.  Based on what he has done to the economy.  FDR and LBJ caused great damage and destroyed families by putting us on the path President Obama has taken us further down than any other president.  Towards European socialism.  It’s all there in history.  And the economic numbers.  How activist governments destroy everything that made capitalist countries great.  Thrift.  Frugalness.  Working hard to save for your future.  Which created a strong banking system.  Where people deposited their money.  Creating investment capital.  And bankers practiced sound lending practices.  And suffered the consequences of making risky loans.  Unlike today.  Thanks to Keynesian economics.  And a monetary policy that controls and plays with interest rates to create artificial demand that causes great bubbles.  And prolonged recessions.  Ever since governments took control of interest rates and began printing money to finance the growth of their activist governments they have set countries everywhere on the path to financial ruin.  And bankruptcy.  As government spending outgrew the ability of taxes to pay for it.  And then the debt grew so great they struggled to finance it.

But it doesn’t deter the Keynesians from trying the same failed policies of the past.  They continue to intervene into the private sector economy.  And when they cause great economic damage they just report bad economic news as good (see Employment Situation Summary by the Bureau of Labor Statistics posted 9/6/2013).

Total nonfarm payroll employment increased by 169,000 in August, and the unemployment rate was little changed at 7.3 percent, the U.S. Bureau of Labor Statistics reported today.  Employment rose in retail trade and health care but declined in information.

Sounds good.  Things are good.  The economy added new jobs.  Fans of the Obama administration are trumpeting this as good news.  And proof that the Obama economic policies are working.  But if you take a close look at the jobs data you find that the economy is horrible.  Because of President Obama.  And his awful, job-killing economic policies.  Such as Obamacare.  Greater regulatory policies.  And higher taxes.  President Obama has advanced (or tried to advance in the case of cap and trade) every policy that he could think of that causes great harm to the economy.  Is he doing this on purpose because he hates capitalism?  Or is he just another Keynesian who thinks that government is smarter than the people going about their business in the private sector economy?  Or both?

The unemployment rate (the official U-3 rate that counts about the fewest of the actual unemployed) has fallen from a high of 10% since he’s been president.  But it’s not because he’s creating jobs.  It’s because these people just gave up and left the labor force.  Because there are no jobs.  As the falling labor force participation rate clearly shows.

U-3 Unemployment Rate and Labor Force participation Rate Jan 2009- Aug 2013

Ever since President Obama took office the labor force participation rate has steadily declined.  Showing a steady trend of destroying jobs.  Not creating them.  If you want to know exactly how many jobs his policies have destroyed you can get that from the Bureau of Labor Statistics, too.  By subtracting the number of people NOT in the labor force when he took office in January 2009 (80,507,000) from the number of people NOT in the labor force from the August Jobs report (90,473,000).  And when you subtract 80,507,000 from 90,473,000 you get 9,966,000 jobs that President Obama and his economic policies have destroyed.  Just under 10 million people have left the labor force while President Obama has been president.  And yet they celebrate the creation of 169,000 jobs in August.

The economy is not good.  It’s not improving.  It will only improve when we finally abandon the failed Keynesian policies of the past.  And get the government out of the private sector economy. The way it was when America became the number one economic power in the world.  Before the progressives/liberals transformed the country into what it is today.  A dying European social democracy.  Where governments tried to give the people everything.  Only to bankrupt their countries.  And caused their people to riot when they couldn’t borrow enough money to keep giving the people what they had been giving them.  Which is usually what happens when you take stuff away from people who have gotten used to having that stuff.  Which is why Obamacare is so insidious.  And important to the left.  Once they make Obamacare a ‘third-rail’ program like Social Security and Medicare they know it will never go away.  No matter what economic damage it does.  Or how much it destroys the quality of health care.

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Is the New York Times ready to blame Bill Clinton for the Subprime Mortgage Crisis?

Posted by PITHOCRATES - August 18th, 2013

Week in Review

President Obama likes to say that the Republicans only want to try the failed policies of the past.  And he’s both right and wrong.  For the Republicans do want to implement the policies of the past.  Because these policies did NOT fail.  Contrary to President Obama’s recurring bleat.  For the policies of President Reagan were based on classical economics.  Those same policies that made America the world’s number one economic power.  While the policies of the left, Keynesian economic policies, have failed every time they’ve been tried.  And reduced America’s economic prowess.

Before John Maynard Keynes came along during World War I the U.S. economy was steeped in the philosophy of our Founding Fathers.  Thrift.  Frugal.  Rugged individualism.  These are the things that made America great.  For over a hundred years Americans worked hard and saved their money.  Spending as little for the here and now.  Always planning for the future.  They put everything they didn’t have to spend into the bank.  As everyone put away these small amounts of money banks turned the aggregate of these numerous small deposits into capital.  Which investors borrowed at reasonable interest rates because we had a high savings rate.  Providing plenty of capital to grow the American economy.  Thanks to a sound banking system.   That exercised sound lending practices.  With investment capital a high savings rate provided.

This system worked so well because people balanced risk with reward.  Bankers made wise lending decisions based on the likelihood of those loans being repaid.  And investors with a history of wise and responsible borrowing had continued access to that investment capital.  While banks who took too great a risk failed.  And investors who took great risks soon found themselves broke with no further access to investment capital.  This balance of risk and reward complimented with a populace that was thrifty and frugal with their money created Carnegie Steel.  The Standard Oil Company.  And the Ford Motor Company.  Risk takers.  Who balanced risk with reward.  And paid a heavy price when they took too great a risk that had no reward.

But the days of Andrew Carnegie, John D. Rockefeller (Standard Oil) and Henry Ford are gone.  These men probably couldn’t—or wouldn’t— do what they did in today’s regulatory environment the left has created.  The higher taxes.  And the financial instability caused by the left’s destruction of the banking system.  As the left has made high-finance a plaything for their rich friends.  By transferring all risk to the taxpayer.  Allowing bankers to take great risks.  With little downside risk.  Giving us things like the subprime mortgage crisis.  Where President Clinton’s Policy Statement on Discrimination in Lending (1994) unleashed 10 federal agencies on banks to pressure them to loan to the unqualified or else.  So they did.  Using the Adjustable Rate Mortgage as the vehicle to get the unqualified into homeownership.  These with no-documentation mortgage applications, zero-down, interest-only, etc., put people into homes by the droves.  Especially those who could not afford them.  Of course, banks just won’t loan to the unqualified without some federal assistance.  Which came in the guise of Fannie Mae and Freddie Mac.  Who bought those toxic mortgages from these lenders, repackaged them into collateralized debt obligations and sold them to unsuspecting investors.  And, well, you know the rest.

So Bill Clinton gave us the subprime mortgage crisis.  And the Great Recession.  It’s always the same.  Whenever liberals get into power they do the same thing over and over again.  They destroy the economy with policies that only benefit them and their rich friends.  America’s aristocracy.  Yet they talk the talk so well people believe that THIS time things will be different.  But they never are.  Already President Obama is talking about doing the same things to increase homeownership that got us into the subprime mortgage crisis.  And his disastrous policies didn’t even prevent his reelection.  Because he can talk the talk so well.  Just like Clinton.  So well that few look at the swath of destruction in their wakes.  At least, not on this side of the Atlantic (see The New York Times takes down the Clinton Foundation. This could be devastating for Bill and Hillary by Tim Stanley posted 8/14/2013 on The Telegraph).

Is the New York Times being guest edited by Rush Limbaugh? Today it runs with a fascinating takedown of the Clinton Foundation – that vast vanity project that conservatives are wary of criticising for being seen to attack a body that tries to do good. But the liberal NYT has no such scruples. The killer quote is this:

For all of its successes, the Clinton Foundation had become a sprawling concern, supervised by a rotating board of old Clinton hands, vulnerable to distraction and threatened by conflicts of interest. It ran multimillion-dollar deficits for several years, despite vast amounts of money flowing in.

A lot of people are scratching their heads as to why the New York Times would run this story.  For it is very out of character for a liberal paper to attack a liberal icon.  Could it be to air out this dirty laundry long before Hillary is a candidate for president?  What, that?!?  That’s old news.  We’ve talked about it already.  Talked it to death.  Nothing to see there.  So let’s focus on what’s important for the American people.

Or could it be that the left has grown tired of the Clintons?  After all, Barack Obama was the first black man elected president.  Something the young people can get excited about.  But will today’s young even know who the Clintons are?  Could be a problem for a party that historically gets the youth vote.  So is this the first sign that Hillary won’t be the anointed one in 2016?  And is this an opening broadside against Hillary?  A harbinger of what is yet to come?  Perhaps.  Or it could mean people are just not falling for the Clinton charm anymore.  Something our friends in the British media have no problem seeing through.

The cynical might infer from the NYT piece that the Clintons are willing to sell themselves, their image, and even their Foundation’s reputation in exchange for money to finance their personal projects. In Bill’s case, saving the world. In Hillary’s case, maybe, running for president.

It’s nothing new to report that there’s an unhealthy relationship in America between money and politics, but it’s there all the same. While the little people are getting hit with Obamacare, high taxes and joblessness, a class of businessmen enjoys ready access to politicians of both Left and Right that poses troubling questions for how the republic can continue to call itself a democracy so long as it functions as an aristocracy of the monied. Part of the reason why America’s elites get away with it is becuase they employ such fantastic salesmen. For too long now, Bill Clinton has pitched himself, almost without question, as a homespun populist: the Boy from Hope. The reality is that this is a man who – in May 1993 – prevented other planes from landing at LAX for 90 minues while he got a haircut from a Beverley Hills hairdresser aboard Air Force One. The Clintons are populists in the same way that Barack Obama is a Nobel prize winner. Oh, wait…

Wish America could see Clinton and Obama as plainly as this.  And not get lost in the gaze of their eyes.

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Keynesian Policies are giving us Great Depression Unemployment with no Hope of Economic Recovery

Posted by PITHOCRATES - September 4th, 2011

Real Unemployment is Greater than the Unemployment Rate for about half of the Great Depression 

The unemployment numbers are bad.  But few realize just how bad they are.  The real unemployment numbers.  Not the official unemployment rate released by the government (U-3).  Because that number doesn’t count a lot of people who can’t find a full time job (see Unemployed face tough competition: underemployed by Paul Wiseman and Christopher Leonard posted 9/4/2011 on the Associated Press).

America’s 14 million unemployed aren’t competing just with each other. They must also contend with 8.8 million other people not counted as unemployed – part-timers who want full-time work…

And the unemployed will face another source of competition once the economy improves: Roughly 2.6 million people who aren’t counted as unemployed because they’ve stopped looking for work. Once they start looking again, they’ll be classified as unemployed. And the unemployment rate could rise.

Combined, the 14 million officially unemployed; the “underemployed” part-timers who want full-time work; and “discouraged” people who have stopped looking make up 16.2 percent of working-age Americans…

If you look at the unemployment rate during the Great Depression (1929 to 1941), this more real rate (16.2%) is greater than the unemployment rate for about half of those years.  From 1932 until 1936, the rate was 23.53%, 24.75%, 21.60%, 19.97% and 16.80%.  After dropping down to 14.18% in 1937, it went back up to 18.91% in 1938.  It fell to 17.05% in 1939.  It was below 16.2% for only 6 years of the 13 years of the Great Depression.  So this 16.2% is bad.  Very, very bad.  And very, very real.

In a healthy economy, this broader measure of unemployment stays below 10 percent. Since the Great Recession officially ended more than two years ago, the rate has been 15 percent or more.

Even if you don’t use Great Depression standards this 16.2% is still very, very bad.

Eventually, lots of Americans…will start looking for jobs again. If those work-force dropouts had been counted as unemployed, August’s unemployment rate would have been 10.6 percent instead of 9.1 percent.

If it wasn’t for a counting gimmick to exclude long-term unemployed who gave up looking for work, the official unemployment rate would count all the unemployed.  And it would be 10.6%.  Not the ‘official’ 9.1% reported.  Of course, throw in the underemployed and it’s back up to 16.2%.

If Taxes and Regulations were Good for the Economy, we wouldn’t have Real Unemployment of 16.2%

No doubt the employment picture is far worse than the media has reported.  And that Recovery Summer was purely political propaganda.  To put a positive spin on some really wasteful ‘stimulus’ spending.  Spending that was more pork and earmarks than stimulative.  And President Obama is going to address a joint-session of Congress to tell us how he’s going to fix the economy.  No doubt urging more of the same that hasn’t worked thus far (see Cheney dismisses Obama’s jobs speech: ‘Don’t think it will get the job done’ by Vicki Needham posted 9/4/2011 on The Hill).

Former Vice President Dick Cheney suggested Sunday that the White House should adopt Reagan-era tax and regulatory policy to spur economic growth…

“The Obama administration is doing exactly the opposite, they’re loading on more regulation on the private sector in respect to how the economy functions,” he said.

They say if it ain’t broke, don’t fix it.  But if it is broke then we should probably fix it.  And based on the real unemployment numbers, the Obama policies are broke.  And need to be fixed.  And a good place to start would be to back off on all of their regulations.  And stop with the new taxes.  We know they’re bad for the economy.  For if they were good for it, we wouldn’t have a real unemployment rate of 16.2%.

President Obama will address a joint session of Congress on Thursday to outline a jobs plan likely to include a call for more infrastructure spending along with an extension of the payroll tax cuts, unemployment benefits and tax incentives for business to pick up hiring…

The president used his weekly address to push passage of an extension of the surface transportation bill to spur highway construction, bridge repair and the improvement of mass transit systems.

Haven’t we heard this message before?  Infrastructure spending?  As in ‘shovel-ready jobs’?  That was the whole point of the stimulus bill.  And being that we’re still talking about ‘infrastructure spending’, apparently it didn’t work.  So why return to a failed policy?

Infrastructure Stimulus Projects are like a Pill that Cures the Common Cold…in only 3 Weeks

Even Obama conceded there was no such thing as a ‘shovel-ready’ job.  Not with the regulatory red tape you have to go through before breaking ground.  Which costs millions of dollars.  So it’s not likely anyone spent millions of dollars over the years just in anticipation of a stimulus program.  Something unknown then that would pay for a project started without adequate funding.  Yeah, like that would ever happen.

But infrastructure work isn’t your everyday make-work kind of employment.  It takes skill.  And experience.  It’s not picking up trash along the side of the road that any unemployed person can do without extensive training (see Did the Stimulus Create Jobs? Not Always for the Unemployed by Megan McArdle posted 91/2011 on The Atlantic).

In the construction industry, there’s another wrinkle; many of the specialties in heavy construction are, at least as I understand it, not overfull with qualified applicants; finding young people who have the math skills and other academic talents necessary to be a modern skilled construction worker, and also want to skip college and apprentice with an outfit like the operating engineers, is something that a lot of the skilled trades worry about. 

I think a lot of people assumed that doing infrastructure construction projects would be a great way to soak up excess labor from the homebuilding industry, but there’s not actually that much overlap; knowing how to install drywall or do framing work does not qualify you for a job that requires sandhogs and specialty welders.  And it can take a long time to make journeyman in many of these professions.  This is also true of certain kinds of civil engineers and so forth. 

Cleary infrastructure projects are not the panacea the Obama administration thinks they are.  They are not ‘shovel-ready’ for the unemployed.  After years of regulatory compliance expenditures, highly skilled and highly specialized workers will break ground.  Which won’t employ a single person outside these specialties.  At least, not without years of training.  And working as an apprentice.  Which will be years down the road.  Which won’t stimulate anything in the here and now. 

This is like a pill that cures the common cold.  In only 3 weeks.  They have no effect.  And their ‘cure’ is purely illusionary.

The Era of Keynesian Big Government came to an End in 1980…for Awhile 

So we know what doesn’t work.  We know what policies are wrong.  Almost 3 years of Obama policies have told us that.  But it’s easy to point to failure.  To identify problems.  It’s a little more difficult to fix problems.  But the amazing thing is we don’t have to fix them.  We just have to stop causing them (see Free The Market by Peter Boettke posted 9/2/2011 on The European).

“The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design”, F.A. Hayk once wrote. We would we well-served to heed his call and reinvigorate the ideology of the free market.

There are a few schools of economics.  There’s the Keynesian school.  The majority of mainstream economists adhere to this.  As well as the Obama administration.  And then there is the Austrian school.  Which is more in keeping with economists like F.A. Hayek and Adam Smith

The Keynesians want hands-on government control and spending.  The Austrian school doesn’t.  Because they don’t think they are better and smarter than the average consumer.

The past thirty years proved the validity of Adam Smith’s assertion, “The natural effort of every individual to better his own condition…is so powerful, that it is alone, and without any assistance, not only capable of carrying on the society to wealth and prosperity, but of surmounting a hundred impertinent obstructions with which the folly of human laws too often encumbers its operations.”

During “the age of Milton Friedman”, as Andrei Shleifer dubed it, key developments in economic freedom—deregulation in the US and UK, the collapse of communism in East and Central Europe, and the opening up of the economies of China and India—allowed individuals to surmount government meddling in the economy. From 1980 to 2005, there were marked, world-wide improvements in life expectancy, education, democracy, and living standards as integration into a world economy delivered billions of individuals from poverty, ignorance and squalor.

From 1980?  You know what happened at that time?  The era of Keynesian Big Government came to an end.  For awhile.  With the rise of Margaret Thatcher in the UK.  And the rise of Ronald Reagan in the USA.  Both were adherents to the Austrian school.  And because of that their nations exploded with prosperity.  Thanks to tax cuts.  And deregulation. 

Unfortunately, this began to reverse course around 2005.  Big Government began to return.  And it’s becoming bigger than it ever was.  We see this in declining Western economies.  And financial crises in these same Western economies (in Europe and the United States).  As they are imploding under excessive government spending.  And debt.

A setting of private property rights, free pricing, and accurate profit and loss accounting aligns incentives and communicates information so that individuals realize the mutual gains from trade with one another. Efficient markets are an outcome of a process of discovery, learning, and adjustment, not an assumption going into the analysis. That process, however, operates within political, legal, and social institutions. Those institutions can promulgate policies that block discovery, inhibit learning, and prevent adjustment, causing the market to operate poorly.

So rather than free market ideology being obsolete, what is needed is a reinvigorated ideological vision of the free market economy: a society of free and responsible individuals who have the opportunity to prosper in a market economy based on profit and loss and to live in caring communities. Yes, caring communities. The Adam Smith that wrote The Wealth of Nations also wrote The Theory of Moral Sentiments, and the F. A. Hayek that wrote Individualism and Economic Order also wrote about the corruption of morals in The Fatal Conceit. Our challenge today is to embrace the full scope of free market ideology so as to understand the preconditions under which we can live better together in a world of peace, prosperity, and progress.

Get government out of the private sector.  Let the private sector respond freely to market forces.  Be responsible.  And be kind to others.  Like they told us in kindergarten.

Keynesians don’t like the Masses, they just want to Rule over Them

Anyone looking objectively at the economy can see where the problem lies.  With government.  Their policies didn’t work in the Seventies.  And they’re not working now.  So why are they returning to failed policies of the past?  Because Keynesian policies grow government.  And those in government want to grow government.  For the money and the power.  And to stroke their egos. 

Keynesians are academics.  They have little real-life experience.  They didn’t run businesses.  Make payrolls.  They didn’t sell.  Or live on the other side of regulatory compliance.  Why?  Because they aren’t entrepreneurs.  They don’t have the ability to be creative.  So they elevate themselves above those who are.  To compensate for their inadequacies. 

They prefer privilege.  Entitlement.  Like the aristocracy in the Old World.  Where a good last name was all you needed for wealth and power. 

Just listen to them talk.  Their very words drip with condescension.  They don’t like the masses.  They don’t live with them.  They don’t vacation with them.  They don’t want to have anything to do with them.  Except to rule over them.  The way it should be.  In their world of privilege.

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As Usual, the Democrats are Trying to Deceive the Voters to Get Reelected

Posted by PITHOCRATES - October 24th, 2010

Yes, I Voted for Obamacare.  But I’m Really a Reagan Democrat.

America is a center-right country.  That’s why liberals don’t run as liberals during elections.  They lie.  And deceive.  They morph into something the people actually want.  Which isn’t who they are.  They move to the center.  They sound like conservatives.  Even invoke Ronald Reagan’s name during the election.  The leftist of liberals are all Reagan Democrats at election time.  Once the polls close, though, they go right back to castigating Reagan and his policies.  And scold us that we can’t return to the failed policies of the past.

Bill Clinton ran as a New Democrat.  But once in office he governed so far to the left that he lost both houses of Congresses at the midterm elections.  Barack Obama, too.  Well, is about to.  Lose super majorities in the House and the Senate.  Why?  Because he campaigned as a centrist.  And has governed as the most liberal president to date.

Obama did not run on the platform of nationalizing our health care.  But that’s the path we’re on.   Obamacare is forcing insurance companies to raise their premiums to comply, setting the stage for further attacks against these greedy corporations.  Some are dropping children-only policies because of the mandate to insure those with preexisting conditions.  With that mandate, no parent will spend money for insurance until their child needs health care.  Obamacare is full of such legislation that has but one purpose.  To kill the private health insurance industry.  To make way for the public option.  And, eventually, nationalize health care.  But he didn’t campaign that way.  Because the voting public clearly didn’t want this.

Don’t Look at My Liberal Legislative Accomplishments.  I’m Actually Against Everything I Voted For.

You see, liberals cannot be honest during campaigns.  They can’t say that their economic policies will make the recession worse.  And prolong it.  Which they have.  They can’t say they are going to raise everyone’s taxes.  Which they will after their commission reports after the election.  They will say that there is no choice but to raise taxes on everyone to reign in the out of control deficit spending.  And they can’t say that we will lose our doctors or the health insurance we like and want to keep under Obamacare.  Which we will.  They can’t be honest about these things and still win elections.  So they lie.  And they deceive.

And now here we are.  At the midterm elections.  If you have been following the campaigns across the country, you’ve no doubt noticed something.  Or, rather, noticed something that’s not there.  That is conspicuous by its absence.   Obama and his Democrat controlled Congress passed an enormous amount of liberal legislation in not quite two years.  And nary a Democrat is running on their impressive liberal legislative accomplishments.  In fact, some are now campaigning against their own legislative record.  Why?  Because they governed against the will of their constituents.  And it’s election time.  So now it’s time, once again, to lie.  To deceive.  And they found a new game this year.  Thanks to the Tea Party.

Oh, these people hate the Tea Party.  They came up with that pejorative ‘tea bagger’ to describe these people.  They did everything they could to mock and belittle these people.  Because these people scare them.  They’re educated.  They understand the issues.  And they know who these liberals are and see through all their lies.  So what’s the logical thing for these liberals to do during this election season?  Why, support Tea Party 3rd party candidates. 

Hello, I’m Devious.  Democrat Candidate for Office.  And I want to Deceive You

The Democrats are heading for a shellacking this November.  They’re desperate.  Especially poor old Harry Reid.  The consummate professional being beaten by some Tea Party hack.  Well, that’s how the Left views it.  So they’re turning up the devious this election.  The following quote comes from an article by Jim Rutenberg published 10/22/2010 at The New York Times on line (see Democrats Back Third Parties to Siphon Votes).

Democrats are working behind the scenes in a number of tight races to bolster long-shot third-party candidates who have platforms at odds with the Democratic agenda but hold the promise of siphoning Republican votes.

And, you’ve guessed it, these 3rd party candidates are balloted as ‘Tea Party’ candidates.  They’re competing against the Democrat candidate.  And the Tea Party endorsed Republican candidate.  That’s right, the actual Tea Party, the grassroots movement with that name, doesn’t endorse these ‘Tea Party’ candidates.

Democrat operatives are actually calling people, identifying themselves as registered Republicans, to promote these 3rd party candidates.  They’re trying to deceive registered Republicans into voting for the more conservative ‘Tea Party’ candidate in lieu of the ‘liberal’ Republican candidate.  If they deceive enough registered Republicans with this trick, they may just be able to Ross Perot their election (Perot was the 3rd party candidate that swept Bill Clinton into office).

Whether they do or not it sure says a lot about the Left.  They just can’t win elections honestly.

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Obama to Small Business: Take the Money. Please.

Posted by PITHOCRATES - September 27th, 2010

Smart Dumb People

Imagine you’re a business owner.  Let’s say you manufacture and sell fancy, high-end, architectural lighting for high-end homes.  Business was good during the housing bubble.  So good you expanded production.  Built a new factory.  Then, with the subprime mortgage crisis, sales took a nosedive.  You had to shutter the new plant you built during the bubble.  And you had to cut a shift at your other factory.  Because with the new home market in the crapper, high unemployment and a general lack of optimism in the future, few people are buying fancy, high-end, architectural lighting.  So what do you do?  Borrow money so you can expand production and hire more people?  If you’re an idiot, perhaps.  But you’re not.  So you won’t.

Business people are smart.  They understand business.  The people in the Obama administration, on the other hand, are a bunch of idiots.  When it comes to business.  They may have their Ivy degrees and their smug condescending arrogance, but they are some of the dumbest smart people that ever were.  To them all business owners are thieves who exploit their employees.  They don’t like them but they understand they need them.  To provide the jobs.  Because everyone can’t work in government.  Someone has to work in the private sector so the government has someone to tax.

With their simplistic understanding of business, they believe business just needs more money.  That’s their answer to everything.  More money.  A business owner can hire more people if only he or she had more money.  Ergo, get them more money.  Hire the people.  Create jobs.  Build stuff.  Just do it already.  What’s the problem?

“Ah, Mr. President, what am I going to do with all this stuff if no one buys it?”

“Huh?  What?”

“That’s what I thought.”

Spend Baby Spend

The economy is a complex thing.  But it’s simple to operate.  All you have to do is get the hell out of the way.  But there are those who just can’t.  They need to tinker.  Because they are smarter than you.  And every other consumer.

Economists are like weather forecasters.  They’re wrong more than they’re right.  Let’s face it; if these people could figure out the economy, they wouldn’t need a day job.  But they do.  They need to offer ‘expert’ commentary.  And advise presidents.  To feel important.  To feel better about themselves.  For being such abject failures that they need a day job.

And, of course, the ones who find favor with those in power are the ones who favor the use of that power.  Keynesians.  Unemployment, Mr. President?  Why you fix that by spending money.  Inflation, Mr. President?  That’s just too much money chasing too few goods.  So you need to spend more.  To stimulate the economy to build more goods.  Inflation is good.  It stimulates.  And it helps to pay off the debt you’re building with your deficit spending.  A trillion dollars today may only be a few hundred billion, say, 10 years from now.  Billions are easier to repay than trillions.  And the more we inflate, the easier it will be to pay off that debt.  See?  Deficit spending and inflation are good things.  So keep spending.

It’s a load of crap.  But it’s doesn’t take much to sell it to a president.  Especially if they want to spend.  As the current president does.  And, boy, does he.

Failed Policies of the Past

Easy money and irrational exuberance created the housing bubble.  People borrowed money and bought over-priced houses.  Then the bubble burst.  The huge inventory of unsold homes corrected the market.  Prices plummeted.  Interest rates went up.  Adjustable Rate Mortgages (ARMs) reset at higher rates.  Subprime mortgages defaulted.  Foreclosures.  More houses thrown on the market, pushing prices down further.  People still paying their mortgages found they owed more than their houses were worth.  Some walked away.  More houses thrown on the market, further depressing housing prices.  That’s what easy money and excess capacity gives you.  A bubble.  Then a deflationary spiral.

And now the Obama administration wants to return to these failed policies of the past.  Obama wants business to borrow money to increase capacity to build stuff no one will buy.  (See AP article Small biz, banks may spurn Obama’s $30B program by Pallavi Gogoi on My Way.)  It’s not housing.  But it’s still the same.  Irrational exuberance.

It’s the Government, Stupid

It’s not a tight credit market that’s hurting this economy.  It’s the Obama administration.  Just like it was the FDR administration.  There’s just too much uncertainty.  Too many anti-business policies.  When you see government dissolve a legal obligation (screwing the bond holders) in favor of helping a political constituency (the UAW), business owners take notice.  And get nervous. 

If you want to help the economy, you got to stop scaring business owners.  You got to stop running roughshod over the rule of law.  If people enter into legal contracts, they need to have some assurance that the government will honor those contracts.  And, to date, the Obama administration’s actions don’t give much assurance.

Until they stop scaring business, what idiot is going to expand and hire people?  That doesn’t work for the government?

www.PITHOCRATES.com

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Revising Language and History to Help the Agenda

Posted by PITHOCRATES - September 20th, 2010

Barack and Big Brother

“Have you heard, brother, about the summer of recovery?”

“No, brother.  Heard what?”

“Millions of jobs were saved.”

“Doubleplusgood, brother.  Doubleplusgood indeed.”

For inner-party members, perhaps.  For us regular party members, though, not a whole lot has changed.  But we don’t complain.  We continue to drink our Victory Gin and praise Big Brother.  Because we don’t want to be summoned to the Ministry of Love and feel the wrath of the state.  Or be audited by the IRS.

Of course, the proles, the masses, get to indulge in their pornography, drugs, music, prostitution, alcohol, cigarettes and other crimethink.  Anything to quell the unruly masses.  The lucky bastards.  Well, the ones not sent to joycamps, at least.  A few privations will always trump forced labor in my book.

The purpose of Newspeak in Oceania is twofold.  First it provides a political correct language to communicate in.  And, second, this simplified language simplifies the people so they’re little more than automatons of the state.  Makes it easier for the state to lie.  To twist the meaning of words.  To change their meaning.  And to change history. 

Unemployment is higher today than it was during the Bush administration.  But we’re not going to return to the failed policies of the past.  Things are better today and moving in the right direction.  Loyal party members believe this.  They know this.  This is blackwhite.  To believe in things that contradict.  The bad economy of today is better than the good economy of the Bush administration.  Despite what the numbers say.  Or until the numbers can be revised to agree with the new truth.  This is the power of Newspeak.

War is Peace

In the past it took a constant state of war to consume the economic output so everyone had less. Everyone was equal (other than inner-party members who were more equal than others).  Everyone was poor.  Lived in fear.  And sacrificed.  For the common enemy.  Today, we don’t need constant war.  We have the welfare state.  The war on poverty.  Which consumes the economic output.  And makes us dependent on the state.  Where we live in fear of losing our benefits.  And shared sacrifice leaves everyone with less.  For the common good.  Except, of course, the inner-party members.

Freedom is Slavery

Imagine a world where you never have to worry or think about where to work, finding healthcare, what to wear, where to live, what movies to watch, what music to listen to, what books to read, what cable news program to watch, what websites to visit or what to do with your spare time (because you won’t have any).  This is true freedom.  Freedom from choice.  You will never have to think again.  Or provide for yourself.  Because to be a slave is to be truly free.

Ignorance is Truth

What you don’t know can’t hurt you.  Obedience to the state is easy when you don’t question what they tell you.  When everything you hear is the truth.  And it is if you don’t know any better.  The era of Reagan is over.  Trickledown economics doesn’t work.  And if you don’t look at the numbers and see the robust economic health of the Reagan years, it is easy to accept the lie.  If you don’t know the truth then you accept what they tell you as the truth.  And you become good party members.

Newspeak Today

This word play doesn’t only exist in George Orwell’s classic book 1984 or in totalitarian regimes.  It exists wherever states want to revise history.  To alter your perception.  The way you think.  To bring you more into the party fold.  The latest is the revision of ‘global warming’ to ‘global climate disruption’ as noted in White House: Global Warming Out, ‘Global Climate Disruption’ In on the FOX News website.  To try and rescue a favored liberal cause from ridicule and charges of junk science it receives today.  Past examples of Newspeak include the following revisions: ‘terrorism’ to ‘man-caused disaster’; ‘war on terror’ to ‘overseas contingency operation’; and now that the Left wants to extend the Bush tax cuts, these have been revised from ‘tax cuts for the rich’ to ‘middle-class tax cuts’.

For further study on revisionism and abuses of state power, you can read 1984, watch the movie or follow the Obama administration.

www.PITHOCRATES.com

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