A dry discussion of economics of Leftist ineptitude.
Employment is down. Private spending is down. What happened?
Private spending is down because of missteps in the credit formation regulation. These missteps happened when the Democrat Party took over the Congress in 2006 and began to enact bad law. The Congress restricted new money creation rules, drying up all the bank cash. Then banks began to fail.
To be fair, this crunchy regulation may have been done in response to the sense too much credit was created. Far more likely it it was because of criminal clumsiness in the House Banking and Finance Committee and its new chair, Barney Frank.
When credit is damaged this way, the right thing to do is sponsor more private credit creation. The Obama government did exactly the wrong thing by going into the private market and borrowing trillions of dollars for pet projects rather than letting the people who needed to borrow money borrow it. All the paste on aid to distressed borrowers is not going to help if the government completely offsets it with elimination of credit.
Is it mere clumsiness or something else? Mr Obama has entered the credit market several times to eliminate credit and scare banks with new regulations. What the party controlled press spins to sound like nifty updating of banking practice regulation has in fact been piles of new reports and micromanagement.
Given that Mr Obama is hostile to free enterprise like the ghost of GM, the defunct Chrysler, soon to expire US Steel, banks of all flavors... this bodes poorly in the near term for large companies in the US. Except for Mr Obama's pets like General Electric.
At this time, the worst thing the Government could do is enact a tax. A tax would suck more money out of the pockets of the people when they need it most. So that is exactly what the Obama Government will do. The Carbon Tax, cap and trade, is a horrific tax increase in the neighborhood of a quarter of a trillion dollars. Around $227,000,000,000.
This reflects Mr Obama's mistrust of individual people and their ability to make sound financial decisions. This mistrust is the essence of Leftism. The Leftist believes people should have no say in their daily lives, so government should regulate every aspect of personal freedom. Mr Obama's policy proposals have all reflected this viewpoint so far. There is no reason to expect he will change.
Today's unemployment figures matched the highest unemployment figures in 26 years. That unemployment rate was caused by the Carter Malaise. Already, Mr Obama's government has equaled the worst, most careless, previous president in history. And Mr Obama's answer is for more of the same.
The question is, how much will we take? When do we say enough! and find some way to rebel. Sooner will be better than later. The sooner we stop the madness, the sooner we can begin to restore the world.
Why do these Leftists suffer such bloated egos? Why do they think there little cadres of elitists can plan to promote general welfare better than the general public. Its a question of incentive. Who has more interest in whether you do well, you or I? Who will be charged up to do a better job of seeing to your own interest? You. Naturally. But in the Leftist mindset, you are too Stupid, Rank, Uninformed, Illiterate, Disinterested, and plainly Despicable to be trusted to hold up your end of the bargain. So they feel no qualm about screwing you.
Big Government micromanagement is always a bad idea. Government screws up. There is no incentive to get it right the first time, since government runs on taxes, not sales. The best a government can do is waste. Some functions, like military, are naturally suited to government: Military is designed to kill people and break things. That character is innate to government. A micromanaging Big Government will kill us with health care and break our economy.