Economy Sinks Further
The LA Times reported today that the Obama Stimulus is not working, GDP is decreasing, house sales have sagged since the first time buyer tax credit has expired, business is not restocking inventory and the job market remains weak.
The Times reported: “Economists at the left-leaning Economic Policy Institute argued that the latest GDP report was more reason for the federal government to provide additional stimulus to keep the recovery on track and ease the pain for millions of unemployed workers.”
This is the answer from the economically brain dead philosophy espoused by the Obama Statist movement. They are calling for an expansion of what doesn’t work Adam Smith the Scottish moral philosopher wrote the Wealth Of Nations in 1776. He carefully pointed out that governments do not create wealth and that individuals are the source of economic growth.
Henry Morgenthou was Secretary of the Treasury during the Roosevelt Depression. Roosevelt expanded the government and used deficit spending to try to stimulate the economy. After eight years Morgenthou wrote in his diary:“
“We have tried spending money. We are spending more than we have ever spent before and it does not work. . . . We have never made good on our promises. . . . I say after eight years of this Administration we have just as much unemployment as when we started . . . and an enormous debt to boot!”
If that sounds familiar it is because Obama has decided to fail even bigger than Roosevelt’s New Deal. The deficits created in the 20 months of Obama’s presidency make Roosevelt’s deficits look like Monopoly money.
Adam Smith in 1776 knew that Obama’s government stimulus would not work. Henry Morgenthou by 1938 learned that government stimulus doesn’t work. We know from today’s report in the LA Times that government stimulus in 2010 is still not a way to grow the economy.
Warren Harding took office in a deepening depression of 1920/21 where the excessive “Progressive” spending of Woodrow Wilson’s administration produced an unemployment rate of 11.7%. Harding quickly turned the economy around by drastically reducing the Federal budget and reducing taxes for business. Harding probably had read Adam Smith’s Wealth of Nation” and knew that government reduces the wealth of our nation. Private enterprise is where jobs are created.
November is coming!
