The moral failures of the Obama economy

Tuesday, May 19, 2009

Have you ever lost control of your car on a slippery road? Terrifying, isnt’t it? If you have the presence of mind to remember that the proper response to regain control is to steer in the direction of the skid, the car recovers. If not, you crash.

To torture the analogy for just a moment more, we are in an economic skid and we’re depending on the powers that be in Washington to steer us out of it. They don’t see the problem.

John Mauldin’s “Outside the Box” has an unusually good article by Horace Brock called The End Game Draws Nigh - The Future Evolution of the Debt-to-GDP Ratio.

Brock makes a compelling case that deficits the government creates are less important than the growth policies that that same government promotes. In other words, it’s possible to grow an economy out of the debt hole if the proper policies are followed.

Unfortunately, while the Obama policies are creating deficits that are larger than any seen before, the policies regarding economic growth are nowhere to be seen. the rest

Inheriting $4.8 Trillion Will Leave You Broke
by Kevin Hassett
May 18, 2009

Excerpt:
Given how huge the Democratic spending binge has been, these numbers have an astonishing impact on the budget outlook. If the Democrats had simply kept spending on the same long-run course they inherited, the budget would show a surplus of $70 billion for 2019, assuming that revenue would be the same as currently forecast.

In Washington, it is unacceptable socially to assert that anyone is telling a lie -- unless, of course, he is named Bush. So let’s say it is a pure, flat-out, bald-faced and shameless misstatement to claim that the budget outlook is an inherited problem. The mess is largely attributable to the Democrats’ own policies.

That’s why they keep saying “inherited” over and over.