Tuesday, December 02, 2008
Just stop it.
Hark back to 2000, when, following a Bush victory, it was magically revealed that the economy was in recession. The Democratics and the lapdog media did their damnedest to pin the poor economy on Bush, never mind that he inherited it from Clinton. Those pesky Arabs managed to make the electorate forget about the economy long enough to allow Bush and Company to get us into two wars, one justifiable. One not so much. And get Bush re-elected. Thanks pesky Arabs!
Now, it is 2008 and Bush has decided that handing off a recognizably crappy economy to the new Panderer-in-Chief is fair play. Unfortunately, the lapdog press is going to allow Obama to leave this pile on the porch where it really does belong while the Obamessiah proceeds to throw borrowed money down an ever-increasing black hole of bad debt in an effort to reinflate our flat economy. It won't work. FDR tried it in the '30's. Every damned Keynesian for the past 40 years has tried it and it doesn't work. Trouble is,the media and the Obamessiah's spin machine are going to maximize positive coverage of Obama's economic "solution" while ignoring inconvenient bad news. This isn't really new; I lived through stagflation and malaise and the worst economy in 100 years and all the spin I could stand. There's lots more where that came from, and from what I've been seeing for the past year, our leaders in DC are failing to learn anything from past failure and are desperately looking for a balloon to blow up.
The "solution" to our ailing economy isn't an increase in taxes. It isn't an increase in spending for public works. Giving our money - actually our great-grandchildren's money - to bankers makes bankers happy, but - just like in the Great Depression and the Great Malaise - the bankers parked on it once they got it. Credit is still tight. Bailing out failing business isn't the answer.
So what is the answer?
Stop it! Ummm, no, wait! Just stop it! *
"So for the same reasons that Washington should not bail out General Motors, the world should not bailout America. Like GM, our economy is in desperate need of a restructuring. Spending must be replaced with savings, and consumption with production. The service sector must shrink and manufacturing must expand to fill the void. The dollar must fall, wages in America must be brought down to a competitive level, and hopefully government spending and burdensome regulation****
can be reduced.
This transformation will not be fun, but it is necessary. Our standard of living must decline to reflect years of reckless consumption and the disintegration of our industrial base. Only by swallowing this tough medicine now will our sick economy ever recover. By accepting a lower standard of living today, we will eventually be rewarded with a higher one tomorrow." (Peter Schiff)
This morning on Fox News, I heard Stephane Dion, the opposition Liberal Party leader from Canuckistan, make an extraordinary statement to the effect that a major reason his new opposition coalition was planning on usurping power from Prime Minister Stephen Harper - an unprecedented move - was because Harper's budget included next to no stimulus for the flagging Canadian economy. "Dion said the coalition would announce a robust economic stimulus plan that would include money for housing, infrastructure and the auto and forestry sectors." Well do tell. If true, then a politician has done precisely the right thing for the Canadian economy. Which is to say, nothing. This was undoubtedly an accident. Harper is after all a politician, and a Canadian politician at that. Of course, Harper caved; apparently the potential loss of power was stimulating enough to pump a little stimulus into the economy. Plus ça change, plus c'est la même chose.
*Not only is the Newhart sketch hilarious, our "leaders" in Washington should apply its lesson to the economy. Those three little words, "just stop it," could go a long way to making the world a better place.
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