Yes Obama is right, deregulation, balanced budgets, low entitlements, and low taxes don’t ever work…so long as you ignore the economic prosperity of Hong Kong and Singapore, the economic growth of Sweden, Chile, and New Zealand in recent years, the booms of the industrial revolution in the U.S. and Britain, the U.S. Depression of 1920 (the reason you haven’t heard of it was deregulation and low taxes made it a very short depression) and the economic collapse of Soviet Russia and the E.U. In fact Obama is absolutely correct, all you have to do is ignore ALL of history and ALL sane macroeconomics theory…once you get rid of those little things hell it’s an easy thing to prove that low taxes and proper deregulation don’t work.
I say proper regulation because deregulating and lower taxes on the people who helped get you elected isn’t what we mean by capitalism, that comes under two different names (1) socialism or (2) crony capitalism…po-tay-to, po-tah-to…given this man’s great understanding of economics let’s call his whole second term off.
Clearly at this point any claim that this man is not a die-hard socialist is preposterous, he just said capitalism doesn’t work. He has made it clear that he doesn’t actually believe in the history of America where America prospers and prospers under capitalism and only really begins to slow down when letters like FDR and LBJ get involved (yes I’ve simplified that, trust me you do not want to read me going over 200+ years of economics). This man is a socialist.
And you have to love his statement, “And that theory fits well on a bumper sticker.” Actually the collected works of Smith, Friedman, Hayek, Von Misses, Sowell, WIlliams, Laffer and a whole host of other economists doesn’t fit on a bumper sticker all that well. Let me see if any of this works as a bumper sticker…”Lower taxes across the board will improve the flow of capital in the economy and allow for greater growth”. No, that’s a little long. Hmmm…what does work as a bumper sticker? What politician has been defined entirely by stupid phrases and bumper stickers? Hope. Change. Fair-share. Hmmmm….which side is defined by bumper sticker policy again? (Yeah both sides use bumper stickers…but the capitalists at least have really thick, well researched and thought out books behind them).
Oh and look what he has for proof “Remember in those years, in 2001 and 2003, Congress passed two of the most expensive tax cuts for the wealthy in history. And what did it get us? The slowest job growth in half a century. ” That’s right because the Democrats continuing to hyper-inflate the real-estate market and the college tuition market and control the minimum wage and spend more than we took in and offer more entitlements and not pass Tort reform…yes all those efforts on behalf of socialism should clearly not be taken into account. Nor should the much larger tax cuts by Kennedy and Reagan which boosted the economy even be looked at. No we should only look at tax cuts that didn’t have an immediate effect because that is all that matters in the economy. Again whose understanding of the economy could fit on a bumper sticker?
Then he goes onto say “Massive deficits that have made it much harder to pay for the investments that built this country and provided the basic security that helped millions of Americans reach and stay in the middle class — things like education and infrastructure, science and technology, Medicare and Social Security.” This coming from the man who supported TARP and the Stimulus and all the other forms of creating that massive debt. No, no let’s not look at spending or regulation. It only has to do with tax cuts. That’s it. That’s the only thing that is possibly relevant to an economy. To hell if raising taxes won’t close the debt or even this year’s deficit. Do you also like how he implies that education, science and technology couldn’t even exist without the government? Without the government nothing could happen in this man’s mind. Yeah he’s not a socialist. Hell you couldn’t even get into the middle class without the government according to Obama. That’s right getting a high school diploma, making good choices and working hard has nothing to do with getting into the middle class…it’s all the government and nothing else.
“Remember that in those same years, thanks to some of the same folks who are now running Congress, we had weak regulation, we had little oversight, and what did it get us?”
Of course. In the last decade we had very weak regulation. We only had rules that prevented insurance companies from crossing state lines and prevented competition…that’s very weak regulation. We had piles of laws, regulations, rules and lawyers to make sure that Banks had no choice but to offer loans to people who couldn’t possibly afford them. We had EPA regulations that forced entire sections of the California agricultural community to shut down all to save an ugly fish no one had ever heard of. We had OSHA rules that prevent productivity. We had a tax code that only benefitted the friends of politicians (GE and Warren Buffet anyone?) We prevented oil drilling in Alaska that would have been safe and forced drilling in the Gulf to be pushed out to more dangerous deep water drilling (remind me how that turned out). As for oversight, I’ll grant you that we had weak oversight, we’ve always had weak oversight. Mainly because the people who we should be looking at are contributing by the barrel load to Obama and the Democrats who controlled the Senate for the majority of the last 10 years and the House for quite a few of them. I love the basic argument of Democrats, since the last few decades of of pseudo-socialism in America has proved that capitalism doesn’t work, we need more socialism. Huh?
I love this one.
“[M]ortgage lenders that tricked families into buying homes they couldn’t afford, a financial sector where irresponsibility and lack of basic oversight nearly destroyed our entire economy.” Tricked. They tricked people into taking these loans. It wasn’t like the law firm you worked Barrack actually sued banks in conjunction with the Clinton Justice Department when the banks tried to not give these people loans. No. It has absolutely nothing to do with laws like the CRA and Barney Frank and Chris Dodd actively preventing legislation by the Bush administration to have more oversight and deregulate the sector and thus stop forcing banks from making bad choices. Nothing to do with that at all. They tricked people. Those evil evil banks.
“We simply cannot return to this brand of “you’re on your own” economics if we’re serious about rebuilding the middle class in this country. We know that it doesn’t result in a strong economy.” We know that? Really? Oh, I forgot we’re going to ignore all of human history that shows that it does work. That’s right how could I be so stupid? I forgot we have class warfare to maintain….and yes he then goes into 7 paragraphs on “inequality” and “fair share.” Despite the fact that this has no relevance in real economic discussions.
And who can forget these passages…
Today, even higher-skilled jobs, like accountants and middle management can be outsourced to countries like China or India. And if you’re somebody whose job can be done cheaper by a computer or someone in another country, you don’t have a lot of leverage with your employer when it comes to asking for better wages or better benefits, especially since fewer Americans today are part of a union
Today, manufacturers and other companies are setting up shop in the places with the best infrastructure to ship their products, move their workers, communicate with the rest of the world. And that’s why the over 1 million construction workers who lost their jobs when the housing market collapsed, they shouldn’t be sitting at home with nothing to do. They should be rebuilding our roads and our bridges, laying down faster railroads and broadband, modernizing our schools — all the things other countries are already doing to attract good jobs and businesses to their shores.
So foreigners, growing markets, and technology are to blame…sounds like a Ron Paul ad doesn’t it? And apparently if we were all in unions everything would be fine (except you know for the fact that every industry with unions is complete crap right now…I’m sure it’s just a coincidence). And he seems to forget that the infrastructure that he’s touting is often built by the companies that are leaving America not by the nations they’re leaving for…so if they’re leaving to spend money on building their own infrastructure at great cost,what is the reason they’re leaving…might it have something to do with high taxes and over regulation? And construction workers are out of work so let’s take carpenters and electricians who aren’t building homes and have them…build roads….wait did I read that right? Yes I did. He apparently thinks all construction workers are the same (they’re not) and even if someone did want to cross lines from one form of construction to another, Obama doesn’t seem to realize those pesky unions he touted just a second ago will not let that happen. Oh and this is all from a man who ensured there would be no new jobs for constructions workers by delaying a massive construction project (of a pipeline from Canada to the gulf) that would have created thousands of privates sector paid for jobs until after the election. Yes, clearly he cares about America construction workers being out of work.
I could go over the rest of the twaddle this man spouted but why bother. It only continues to show a complete ignorance of history, economics, human psychology, and long term thinking. I merely point out this paragraph from near the end of the speech:
“This isn’t about class warfare. This is about the nation’s welfare. It’s about making choices that benefit not just the people who’ve done fantastically well over the last few decades, but that benefits the middle class, and those fighting to get into the middle class, and the economy as a whole.”
And whenever you hear a Democrat tell you it’s not about class warfare, trust me it’s about class warfare…class warfare that will only benefit those politicians and the corrupt who pay to keep them in power because they couldn’t survive in a real capitalist system.
And another look at how we don’t exactly have a capitalist system right now…