Obama's Plan For Failure

Here is Obama's plan for failure. For instance he has promised to lower the debt. I think that promise has expired. And he will be friendlier to the working class by destroying the companies they work for. The man is a genius.

Obamanomics: How Bottom-Up Economic Prosperity Will Replace Trickle-Down Economics (Economics in the Obama Presidency)

I can explain in simple terms why bottom up doesn't work. Say you give a man a dollar stimulus and he spends it. About 10¢ of that dollar will wind up as profit for the manufacturer. This dollar will increase demand which will tend to cause prices to rise. Now suppose you give business a $1 tax cut. That whole dollar will go into making the business better serve its customers, tend to increase supply (lowering prices) and the very businesses that are satisfying their customers the most (doing more with less) will benefit the most from a tax cut on business. You know, reward winners instead of trying to pick them.

And here is another book that Obama needs to read. How to appoint people to government without embarrassing yourself. He seems to have missed reading it.

The Obama Political Appointee Primer

We now have a couple of benchmarks. We can look back in a year or three and see how he has been doing.

Why hasn't Polywell Fusion been funded by the Obama administration?
IEC Fusion Technology (Polywell Fusion) Explained

Cross Posted at Power and Control

posted by Simon on 01.31.09 at 02:19 PM










Comments

There is no plan to "recover" the US economy. There is a plan to transform US economics. The transformation requires that capitalism bow to statism. Private enterprise is secondary to the state, as is individual enterprise, innovation, and flow of capital.

Hence, most investors are pulling their money from the market. Redemptions far exceed losses from major funds and stocks. People are pulling their money from the market. Funds are gong under not because of losses but because of redemptions.

Further, most corporations are pulling back rather than investing in great buying opportunities: equipment, factories, and inventories.

Every industry that anticipates heavy government involvement, solicited or undesired, expects a lack of oxygen - a lack of business opportunity and freedom to profit - thus retrenches. Examples include auto, airlines, aircraft manufacturing, defense, healthcare, finance, and banking. Together these industries comprise more than 50% of what we had called private enterprise, even though they were heavily regulated before the latest round.

Now, in the name of economic stimulus, these industries, and more, will be minor players in a government run set of directives, funded by and controlled by US regulators already shown to be both uncaring of economic reality but also corrupt in appointing overseers for political gain.

Welcome to Change (tm).

It is the administration's interest to ensure that we, the people, recognize that this transformation will take years, and that we should not expect the stimulus package to yield results within the next couple of years.

Never mind that every other stimuli package that worked took months, not years to produce results - except that of Roosevelt, New Deal Creator, that showed only extended depression until events overtook policy after WWII.

Buckle down. Convert your assets. Find jobs with economic value, not services oriented.

Events will eventfully overcome this situation. Politics will not.

John Lynch   ·  January 31, 2009 10:19 PM

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