"There is no disagreement," said then-President-elect Barack Obama Jan. 9, "that we need action by our government, a recovery plan that will help to jump-start the economy."
No disagreement?
During the last economic downturn — seven years ago — I interviewed economics professor George Reisman, author of the book "Capitalism: A Treatise on Economics." He reacted to a newspaper article that called government spending a "potent recession cure when administered properly."
Reisman: That is a view held by a large school of economists, perhaps the majority school, for the last 60 years or so. That's the Keynesian school, but there are other economists, like the Austrian school, which holds a very different position. In their view, an essential requirement to a sound economy is balanced budgets with small government. We want government limited to protecting life and property. The government should be attacking terrorists, providing police protection against common criminals, and that should be essentially it, and the people in an environment free from terror will proceed to provide for themselves economically. That has been the basic philosophy on which the United States was built.
Elder: I know you're not a journalist, but isn't it unfair to make (the "recession cure") statement … as if it's a fact?
Reisman: No, it is definitely not a fact, and it displays considerable ignorance which leaves out of account any alternative point of view, and in fact, it's easy to argue that deficits can pretty well worsen recessions with depression, because one of the main characteristics of any severe recession is widespread bankruptcies. Deficits contribute to that by withdrawing capital from availability for business. The deficits absorb savings, and those savings are then not available to be lent to business firms in need of credit, so more firms go under than would otherwise have gone under, and that worsens the depression or recession.
Elder: Is it too strong to say that this guy is simply wrong?
Reisman: … He's definitely wrong. … It's not deficits in and of themselves that promote spending, although he … seems to think that a dollar spent by the government is somehow more beneficial than a dollar spent by you or me, which is ridiculous. What people really have in mind, to advocate this position, is that the government will run at a deficit and not borrow from the general public … but will manufacture the money — print it. So they'll enlarge total spending. So it's this mentality I would think more than anything else that's been responsible for our problems with inflation for the last 65 years or so.
Every year, there is more and more money out there. … The rise in spending just outstrips the increase in production and the supply of goods, and so prices continually rise. …
Elder: (This article asserts) you can spend government money to get us out of a recession.
Reisman: That's definitely the idea that someone would come away with, and one would have no idea that one would have an alternative way to get out of the recession or depression or what one got us into in the first place. What put us into this recession and what causes every recession is precisely a preceding policy of inflation … the tremendous stock market boom fed by the Federal Reserve's rapid expansion of money. There was additional money poured into the stock market, and that … raised prices, and when they decided not to continue that … then the market fell. It would not have had that terrible fall if it had not had this artificial rise first, engineered by the Fed … a major aspect of inflation itself.
Elder: The (article) quotes an economist from the so-called "non-partisan" Brookings Institution: "Tax hikes do less damage to the economy during a downturn than an equivalent amount of spending cuts." What does that mean?
Reisman: … Keynesians argue that if you increase government spending by a dollar and increase taxes by a dollar, that serves to increase national income by a dollar. And that's what's being argued here. The joke of this argument is that the Keynesians are really very ignorant of aggregate economic accounting. … It's actually possible that by raising taxes a dollar and government spending a dollar, you can raise national income a dollar. But the way that would happen is only if the taxes were paid with funds that otherwise would have bought capital goods, like machinery and equipment.
Elder: Why the widespread myth that FDR's policies got us out of the Depression?
Reisman: I think that fits with the statist preconceptions. If you view the government as some kind of deity and you think it's omniscient and omnipotent, then that's your basic expectation. …
This interview took place seven years ago. Days ago, the libertarian think tank Cato Institute took out a full-page ad. It listed more than 200 economists — by name — who reject more government spending and instead urge tax cuts and smaller government. The full-pager ran in "minor" newspapers, such as The New York Times, the Los Angeles Times and The Washington Post.
So, President Obama, please read these economists' "disagreement." Whip out your BlackBerry.
Larry Elder is a syndicated radio talk show host and best-selling author. His latest book, "Stupid Black Men: How to Play the Race Card — and Lose," is available now. To find out more about Larry Elder, visit his Web page at www.LarryElder.com. To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.
CREATORS SYNDICATE COPYRIGHT 2009 LAURENCE A. ELDER
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OBAMA AND ‘TAX & SPENDERS' “SCARE TACTICS!”
Folks, if you care about America and it's future, you'll fight this latest Stimulus Package
by staying in touch with the politicians who are supposed to be working for Americans.
Guess what, they're only working for themselves. Their pockets are very deep and these
‘fat cats' are very greedy!
i just pulled up the following, which is Obama-Biden trillion dollar proposed budget,
added already to our trillions of dollars of debt, and counting, due foreign countries!
Guess what's going to happen to America when interest isn't paid on these notes?
The heading - ‘THREE FACTS ABOUT OBAMA AND POVERTY!' Surely, this is a joke?
Taxpayers know this is beginning of Obama and the ‘tax and spenders' final icing on
cake for Bankrupting America! All the trillions now owed was started when social,
welfare and housing programs were created; thus, stopping the illegitimates from doing
nothing, but lying around, having more illegitimates. ANYONE LISTENING? Illegitimates
are creating ‘TERRORISM ON AMERICAN SOIL' and ‘Obama-Biden and Tax and
Spenders' want to INCREASE AND ADD TO SAME PROGRAMS? My God, where's the
sanity in this?
It's obvious this document/proposal was written by someone who is'unfamiliar and
untrained' as all of this ‘proposal' is written into laws, and under several Departments! A
couple really come to mind: Department of Housing and Urban Development and
Department of Social Services, as this is where all the illegitimates gather to collect
money they're not entitled to!
This hyped-up document/proposal cost Taxpayers lots of money and is useless as a lot
of the politicians trying to use ‘Scare Tactics' and Taxpayers no longer are listening! It
looks like these ‘fat cats' will do and say anything to get this ‘Stimulus' package passed
for their very deep pockets! If you are a Taxpayer, don't you wonder why?
Take a very close look at last paragraph - RE: Illinois - and to think, Illinois has been
receiving millions for several years, and they're broke because of the ‘same social,
welfare, and housing programs, already on books, and they're trying to send them
through again! Doesn't take a rocket scientist to figure out this illegitimate mess had
bankrupted America and, it seems, politicians want to eliminate what we now call
America! If they didn't want to do this, why would they have sold America out for Nafta
and Cafta?
The following Obama-Biden ‘hyped-up' proposal should be read very carefully to see
how politicians can ‘twist and turn words' for their benefits. Taxpayers are now paying
close attention to what's affecting their homes, their jobs, and their stability!
======================================================================
a.. Barack Obama will expand access to jobs: Obama and Biden will invest $1 billion
over five years in transitional jobs and career pathway programs that implement proven
methods of helping low-income Americans succeed in the workforce.
b.. Make work pay for all Americans: Obama and Biden will increase benefits for working
parents, raise the minimum wage to $9.50 an hour by 2011, and provide tax relief to low-
and middle-income workers.
c.. Support rural and urban areas: Obama and Biden will invest in rural small
businesses, improve rural schools, and attract more doctors to rural areas. And they will
work with urban leaders to increase the supply of affordable housing and address the
unique challenges of every metropolitan area.
In this Section:
a.. Expand Access to Jobs
b.. Make Work Pay for All Americans
c.. Strengthen Families
d.. Increase the Supply of Affordable Housing
e.. Tackle Concentrated Poverty
More on Poverty:
a.. Watch More Videos
b.. Read the Plan
c.. Read the Plan to Fight Hunger
d.. Read the Urban Poverty Speech
Present your ideas:
Speak your mind and help set the policies that will guide this campaign and change the
country.
Plan to Combat Poverty:
The Problem Poverty Rising: There are over 37 million poor Americans. Most Americans
living in poverty work, but still cannot afford to make ends meet.
Minimum Wage is Not Enough: Even when a parent works full-time earning minimum
wage and EITC and food stamps are factored into their income, families are still $1,550
below the federal poverty line because of the flat-lined minimum wage.
Barack Obama and Joe Biden's Plan:
Expand Access to Jobs:
a.. Help Americans Grab a Hold of and Climb the Job Ladder: Obama and Biden will
invest $1 billion over five years in transitional jobs andcareer pathway programs that
implement proven methods of helping low-income Americans succeed in the workforce.
b.. Create a Green Jobs Corps: Obama and Biden will create a program to directly
engage disadvantaged youth in energy efficiency opportunities to strengthen their
communities, while also providing them with practical skills in this important
high-growth career field.
c.. Improve Transportation Access to Jobs: As president, Obama will work to ensure that
low-income Americans have transportation access to jobs. Obama will double funding
for the federal Jobs Access and Reverse Commute program to ensure that additional
federal public transportation dollarsflow to the highest-need communities and that urban
planning initiatives take this aspect of transportation policy into account.
d.. Reduce Crime Recidivism by Providing Ex-Offender Supports: Obama and Biden will
work to ensure that ex-offenders have access to job training, substance abuse and
mental health counseling, and employment opportunities. Obama and Biden will also
create a prison-to-work incentive program and reduce barriers to employment. Make
Work Pay for All Americans
a.. Expand the Earned Income Tax Credit: Obama and Biden will increase the number of
working parents eligible for EITC benefits, increase the benefits available to parents who
support their children through child support payments, increase benefits for families
with three or more children, and reduce the EITC marriage penalty, which hurts
low-income families.
b.. Raise the Minimum Wage to $9.50 an Hour by 2011: Barack Obama and Joe Biden
believe that people who work full time should not live in poverty. Even though the
minimum wage will rise to $7.25 an hour by 2009, the minimum wage's real purchasing
power will still be below what it was in 1968. As president, Obama will further raise the
minimum wage to $9.50 an hour by 2011, index it to inflation and increase the Earned
Income Tax Credit to make sure that full-time workers can earn a living wage that allows
them to raise their families and pay for basic needs such as food, transportation, and
housing - things so many people take for granted.
c.. Provide Tax Relief: Obama and Biden will provide all low and middle-income workers
a $500 Making Work Pay tax credit to offset the payroll tax those workers pay in every
paycheck. Obama and Biden will also eliminate taxes for seniors making under $50,000
per year. Strengthen Families
a.. Promote Responsible Fatherhood: Obama will sign into law his Responsible
Fatherhood and Healthy Families Act to remove some of the government penalties on
married families, crack down on men avoiding child support payments, and ensure that
payments go to families instead of state bureaucracies.
b.. Support Parents with Young Children: Obama and Biden will expand the
highly-successful Nurse-Family Partnership to all 570,000 low-income, first-time mothers
each year. The Nurse-Family Partnership provides home visits by trained registered
nurses to low-income expectant mothers and their families.
c.. Expand Paid Sick Days: Today, three-out-of-four low-wage workers have no paid sick
days. Obama and Biden support guaranteeing workers seven paid sick days per year.
Increase the Supply of Affordable Housing
a.. Supports Affordable Housing Trust Fund: Obama has supported efforts to create an
Affordable Housing Trust Fund to develop affordable housing in mixed-income
neighborhoods.
b.. Fully Fund the Community Development Block Grant: Obama and Biden will fully fund
the Community Development Block Grant program and engage with urban leaders
across the country to increase resources to the highest-need Americans. Tackle
Concentrated Poverty
a.. Establish 20 Promise Neighborhoods: Obama and Biden will create 20 Promise
Neighborhoods in areas that have high levels of poverty and crime and low levels of
student academic achievement in cities across the nation. The Promise Neighborhoods
will be modeled after the Harlem Children's Zone, which provides a full network of
services, including early childhood education, youth violence prevention efforts and
after-school activities,to an entire neighborhood from birth to college.
b.. Ensure Community-Based Investment Resources in Every Urban Community: Obama
and Biden will work with community and business leaders to identify and address the
unique economic development barriers of every major metropolitan area. Obama and
Biden will provide additional resources to the federal Community Development Financial
Institution Fund, the SmallBusiness Administration and other federal agencies,
especially to their local branch offices, to address community needs.
c.. Invest in Rural Areas: Obama and Biden will invest in rural small businesses and fight
to expand high-speed Internet access. They willimprove rural schools and attract more
doctors to rural areas. And they will implement a bold climate change and energy
independence plan that will revitalize rural America through new investments in
renewable energy production, including wind, solar and biofuel investments. Barack
Obama's Record
a.. Tax Relief for Low-Income Working Families: Obama created the Illinois Earned
Income Tax Credit for low-income working families in 2000 and successfully sponsored a
measure to make the credit permanent in 2003. The law offered about $105 million in tax
relief over three years.
b.. Housing: In the Illinois State Senate, Obama championed multiple pieces of
legislation to help low-income families find adequate affordable housing.
Comment: #1
Posted by: Shirley deLong
Thu Feb 5, 2009 4:37 PM
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