Wednesday, February 11, 2009

"Failed Policies"

The talking point used by Obama and his supporters as they advance that monstrosity of a 'stimulus' package, is that we don't want to go back to the 'failed policies of the past'. Oh?! And what failed policies might they be? The big O is always short on specifics. For good reason - he favors them. Here are the U.S. budgets for the years 2000-2007 :

Receipts Expenditures Surplus/Deficit
(In Trillions)

2000 2.025 1.789 + 0.236

2001 1.991 1.863 +0.128

2002 1.853 2.011 -0.158

2003 1.782 2.160 -0.378

2004 1.880 2.293 -0.413

2005 2.153 2.472 -0.319

2006 2.407 2.654 -0.247

2007 2.568 2.729 -0.161

(Sorry for the spacing problem)

Since the Bush tax cuts took effect, revenue has soared. This is contraintuitive to the liberal mindset, of course. The deficits, which, by the way, had been falling until the financial meltdown last year, were caused by the explosion of Federal spending. Obama's cure - more Federal spending. If you want to blame Bush for his part in increasing spending, go ahead, but understand that 1) He was advancing a liberal agenda, and 2) The present economic mess we're in was caused, in large part, to the loose money policy of the Federal Reserve and the de-risking of subprime mortgages by congressional Democrats supporting affordable housing for the poor through their advocacy of (the illiquid) Fannie Mae and Freddie Mac.

As with Bush, the Democrats demonized Herbert Hoover. Unlike Bush, Hoover's policies - increases in spending, higher taxes and protectionism - all dear to the Democrats, did much to push the U.S. into a depression. FDR upped the ante on Hoover's policies, keeping the country mired in depression for eight years. I don't think Obama and the Democrats can do that much damage this time - moves made by the Fed should help us avoid disaster - but they are doing damage.

One more point. It would help some if Obama wasn't so downbeat. I thought he was the candidate of "Hope". Much of what he says sounds mostly like fear to me. FDR screwed up but at least he could talk the talk.

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