January 27, 2010 | American Spectator
Coming Tonight: The Mythic Tale of How Barack Obama Averted the Next Great Depression
By Andrew B. Wilson
If the Obama administration has its way, the “Great Recession” of our own time, like the Great Depression of three quarters of century ago, will be fondly and forever enshrouded in the clouds of politically inspired myth. The administration wants everyone to believe the myth of the averted depression, which is like the jobs saved part of its risible “jobs created or saved” metric, only larger and more breathtaking.
Even though things are bad today, President Obama and key members of his economic team repeatedly suggest that we should be thankful they are not a hundred times worse. No doubt we will hear this again tonight, when the president gives his state-of-the-union address. We will hear how the administration has performed a Herculean feat in pulling the country out of the downward spiral into another great depression.
In one of his 12 labors, Hercules diverted an entire river to cleanse the Augean stables. In the updated version of this ancient myth, Mr. Obama talks about the huge “mess” that he confronted upon coming to office. In his telling, this “mess” was years in the making—the result of a long period of unrestrained “greed and irresponsibility,” caused by excessive deregulation and a mean and uncaring reliance on “trickle-down economics.” …
It is difficult to disprove a negative supposition (e.g. things are bad today, but think how more terrible they might be if the president hadn’t done this or that). There are, however, good reasons for doubting the notion that the Obama administration deserves credit for averting a second great depression.
First, it is simply a fact that most of the critical steps that were taken to stabilize the financial system predated the Obama presidency. That includes the passage of the Troubled Asset Relief Program (TARP) and government-encouraged consolidation within the financial sector that eliminated free-standing investment banks. These events happened during Mr. Bush’s term of office. For better or worse, Mr. Obama thought well enough of the Bush administration’s handling of the crisis to retain Ben Bernanke as chairman of the Federal Reserve and to move Tim Geithner, who had been in the thick of Bush’s crisis management team as head of the New York Fed, to the position of Treasury Secretary.
Second, no one—not even such left-leaning economists as Paul Krugman or Joseph Stiglitz—is hailing the administration’s $787 billion stimulus package as a landmark success. It was sold on the basis of being a desperately needed emergency measure that would keep unemployment from rising above 8 percent. That was a line in the sand that did not hold. Instead, unemployment moved to 10 percent, where it remains today.
Third, and finally, it is difficult to believe that this administration could have stumbled across a cure to the dread disease of another great depression when its diagnosis of various elements leading to the financial meltdown of 2008 is so clearly faulty. It critically overlooks government’s role in causing the crisis. As Roger Parloff wrote in Fortune magazine last January, “The fact that lenders were hawking outlandishly risky mortgages to people who were terrible credit risks was, in fact, no secret: It was bipartisan national policy.” …
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January 27, 2010 | American Thinker
Guessing What President Obama Might Say in His State of the Union
By Harold Witkov
… When the president gives his speech, I am going to play “secret word”—or in this case, “secret phrase.” The secret phrase is “back from the brink.” If the president says my secret phrase in his speech, I am going to have myself a laugh and imagine a papier-mâché duck dropping on a string from above and dangling in front of the president’s startled face before the joint session of Congress.
Why “back from the brink”? Truth is, President Obama has already used this phrase on a few occasions, and it irked me every time I heard it. In each instance, he has used the phrase to imply that if it were not for him and the Democrat Congress passing the Recovery Act, we would all be goners—that they personally “pulled this economy back from the brink.” …
If our President chooses to play his clever “we owe the president big time” card, recognize it for exactly what it is: pure fiction. The president never pulled us “back from the brink.” It was by claiming that we were in dire peril that he was able get his failed legislation through. If we were truly on the brink, why were so many earmarks loaded onto the Recovery Act, and why has so much of the money yet to be spent?
If the president says “back from the brink” during his State of the Union, I will be on to his little trick. Besides picturing a descending papier-mâché duck, I will be reminding myself how he and the Democrats have been Pied-Pipering America “to the brink,” and not from it. Then I will thank the voters of Massachusetts for moving us one step safer away from Obama’s bankruptcy death wish for America. …
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January 27, 2010 | Big Government
The Marxist Roots of Obama’s Economic ‘Pivot’
by Joel B. Pollak
President Obama’s advisers assure us that he will use his State of the Union address tonight to deal with our nation’s ailing economy. Americans have already begun to hear talk of a “hard pivot” at the White House, away from health care and towards jobs.
Yet in economic terms, the president’s shift thus far has been more of the same: more government control and less individual freedom.
His attacks on banks—including a new tax that will invariably be passed on to consumers—caused stocks to plummet last week. He has targeted some banks for being “too big,” but without ending the costly policy of “too big to fail,” which removes the discipline of risk and reward. He crowed, “We want our money back,” but wants to use “our” money for his own spending programs, not for tax relief.
The central idea of the President’s new plan appears to be shaping up as a jobs program, in imitation of FDR’s public employment programs during the Great Depression, and funded by
new taxes on Wall Street.
The plan is not about job creation—more jobs could be created by the private sector—nor is it about recouping the bailout. It is primarily about redistribution—and is based on old, bad ideas.
Look for two key words likely to appear in the President’s speech: “productive” and “unproductive.” These come from Democrat strategist Robert Creamer, who recently wrote a blog at the Huffington Post entitled: “Tax Bank Bonuses and Capital Gains of Wealthy to Pay for Jobs Program.” Creamer argued that the government should tax the “unproductive financial sector” and “incentivize productive work” instead. ...
The false distinction between so-called “unproductive” and “productive” work has a long and sordid history. It was a cornerstone of Marxist economic theory, and was also a staple of antisemitic rhetoric in Europe. Jews, barred by law from owning land and practicing certain trades, became prominent in finance—“unproductive” work, to their detractors—and were scapegoated during times of economic turmoil. …
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January 27, 2010 | Front Page Mag
The State Of The Union Address Obama Should Give
In a culmination of his controversial first year in office, President Obama will deliver the State of the Union address this evening. Front Page magazine turned to a panel of experts for their advice on the speech that the president should give and the political priorities that he must address in 2010. — The Editors …
David Horowitz: Nowhere Left to Turn …
Peter Collier: A Teachable Moment …
Alan Dowd: The Pride Before the Fall …
James Carafano: Time for Return of the Straight Talk Express …
Ariel Cohen: A Reset on Russia …
Andrew Klavan: Here is my suggested text for the State of the Union in its entirety:
“My fellow citizens of the world. I come before you today to gaze into the middle distance and speak in ringing phrases. For make no mistake: the time for phrases that do not ring is past. Already, in only the first year since I have fulfilled my awesome destiny, I have created millions of jobs—not just ordinary jobs that you have to work at for pay, but jobs beyond your wildest imagination, over the mountain of your deepest desires, and down the hallway of your fondest dreams. I have sent many troops to Afghanistan—many, many troops who are running here and there with serious faces, shouting “Let’s go,” and firing their rifles so that the isolated extremists who have gathered together in great numbers to attack us will know that I am become Shiva, destroyer of worlds.
“But there is much still to do. Even as we speak, a child is crying—a little, sad, pitiful child with big eyes, crying enormous tears that will cost hundreds of billions of dollars to dry. So let me be very clear: the bridge from yesteryear leads to the cloudbanks of a golden perfection where the prospect of a horizon awaits a mighty century. At this, we must not fail. Thank you—and God bless us, every one.”
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January 26, 2010 | Pajamas Media
The Real State of the Union: Fear
Michael Ledeen
… I do believe that passion [in the Massachusetts special election] played a big role, but a somewhat different one: not anger, but fear. They’re afraid of Obama. Afraid of what he’s doing to them, and therefore prepared to change sides.
This fear is extremely broad-based. It is not limited to social class nor to domestic or foreign policies. Banks are not lending, companies are not hiring, because they are afraid of what Obama will do next. Both are afraid of onerous taxes, including new health care burdens, and the banks fear new regulations and the consequences of the recently declared war on evil bankers by the president. Seniors are afraid they will be deprived of medical treatment. Juniors are afraid they are going to be forced to buy health insurance they don’t think they need. Across the board, Americans are afraid they’re not going to find work, and won’t be able to afford a house. And, as the Massachusetts vote showed, Americans are worried about threats from abroad, worried about Iran, afraid of terrorist attacks, and afraid the Obama Administration doesn’t take all this seriously enough. As Scott Brown put it, most Americans think our tax dollars should go to fighting terrorists, not to pay lawyers to defend terrorists.
Machiavelli once asked whether it was better for a ruler to be loved or feared. He said that it would be best to be both, and that either one could work all by itself. But if you must choose, he said, fear is better, since love is fragile, while “fear of punishment works every time.” …
He doesn’t instill fear of punishment. It’s his policies and his weakness that frighten us. The man himself risks inspiring contempt. Which, as Machiavelli says, is the most dangerous thing that can befall any leader.
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January 27, 2010 | Pajamas Media
Obama’s State of ‘The One’ Speech Preview
Rich Baehr
No president has ever been more desirous of a large prime-time audience than Barack Obama, and the president will get his biggest audience since his inauguration with his first State of the Union address tonight. These speeches are almost always too long and boring, not even counting the dozens of standing ovation interruptions that will be led by Speaker Nancy Pelsoi and Vice President Joe Biden.
… If there is any mystery in the president’s remarks, it is what he will say about the health care reform effort. It appears that the president and Democratic leaders in Congress are unwilling to throw in the towel and seek a smaller and more bipartisan bill. In short, they have come too far to allow their failure to pass a bill even with complete control of both houses of Congress to be acknowledged. Instead, they will attempt one more time to jam this unpopular bill through by having the Senate version of the bill passed by the House and sent directly to the president, with a second bill containing fixes to the Senate bill passed via the reconciliation process in both houses. This would require only 51 votes in the Senate (no GOP filibuster possible).
Americans by a large majority hate the process that accompanied the health care reform effort: the bribes, the closed sessions, the payoffs to major lobbying groups (the latest a $60 billion deal for the unions), and the complexity (the unread 2,000-page bills). They want the effort killed. The health care reform effort in substance was a major redistribution effort — getting seniors and wealthy Americans to subsidize health care for lower income Americans without insurance. Since the 85% of Americans with insurance would not benefit from this, and some would now be asked to pay for the expansion of coverage of others, the bill could not be successfully sold for what it was — namely, a giant redistribution program.
Instead, the bill was sold as a way to protect Americans against sinister greedy insurance companies. The other selling point was that only with this reform effort would health care costs begin to come down. Most Americans had little trust that spending hundreds of billions more each year would bring their health care costs down ($2.5 trillion would be spent in the first ten years after the program was fully in place). It is hard to see a way for the president to successfully resell to the public the mishmash in the Senate bill with some new special interest fixes. But if the president believes in anything other than himself, it is in redistribution. …
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Wednesday, January 27 |Red State
Things are so bad there is a betting pool on which DEMOCRAT screams ‘You Lie!’ tonight.
Erick Erickson
… Said one well connected Democrat last night, “Things are so bad there is a betting pool on which DEMOCRAT screams ‘You Lie!’ tomorrow night.” Well, tomorrow night is now arrived.
This past week, Americans have been treated to two very awkward scenes — Barack Obama speaking to a group of elementary school students with his teleprompter and Barack Obama speaking to his middle class task force with a teleprompter.
The man is extremely scripted. The visuals subject Obama to appropriate ridicule (school kids + teleprompter. Really?!?), but the script he is using is the true punchline for jokes.
For the past year, Barack Obama has called everything he does “unprecedented” and “historic.” His favorite four letter word is “Bush”. A day does not go by without someone in the administration blaming George Bush for all their ills. Counter-intuitively, the Democrats even blamed George Bush for Scott Brown’s victory in Massachusetts.
Tonight, it will be interesting to see how often he blames George Bush and how often he resorts to stale cliches the public is no longer buying. Obama, his teleprompter, and the rhetoric they deploy have become the butt of late night jokes. When Barack Obama loses Jon Stewart [see below], he is in real trouble. …
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