Thursday, February 5, 2009

Obama: I Don't Understand This Economics Business But I'm Pretty Sure This Is Bush's Fault

US President Barack Obama descended from his well-heated White House today to give the misguided North American masses a shot of wisdom about the economy.

Straight from the horse's mouth:

In recent days, there have been misguided criticisms of this plan that echo the failed theories that helped lead us into this crisis — the notion that tax cuts alone will solve all our problems; that we can meet our enormous tests with half-steps and piecemeal measures; that we can ignore fundamental challenges such as energy independence and the high cost of health care and still expect our economy and our country to thrive.

I reject these theories, and so did the American people when they went to the polls in November and voted resoundingly for change. They know that we have tried it those ways for too long. And because we have, our health-care costs still rise faster than inflation. Our dependence on foreign oil still threatens our economy and our security. Our children still study in schools that put them at a disadvantage. We've seen the tragic consequences when our bridges crumble and our levees fail.
But don't get him wrong: he loves the American constitution. Just not those nasty parts about property rights and the limited role of the state in the individual's life.

Of course, he's right about tax cuts alone doing little to correct the fundamentals of the economy. Tax cuts need to be accompanied by spending cuts and it is well-covered ground that the Bush administration had a rather difficult time rolling back the spending.

But that isn't the gist of Obama's opinion editorial. Rather, he's looking to throw out the baby with the bath water. He is rejecting capitalism because conservative socialism didn't work. Bush did not govern like a capitalist; he governed like a big government "compassionate conservative" type. Accordingly, the flaws in the Bush method are not the flaws of capitalism. In fact, the truth is quite the opposite. The only tonic to the current financial crisis is a return to capitalism.

The Obama plan will replace flawed economics with even more profoundly flawed economics. Boy, the next four years ought to be a hoot.

H/t Kathryn Jean Lopez

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