Obama: The only thing we have to fear is a sustained depression; Update: McConnell response added

posted at 1:00 pm on January 8, 2009 by Allahpundit

He actually used the D-word, albeit in reference to what earlier generations had to face. Which is fitting: Aside from the passage about green energy, this is pure FDR, right down to the nod at “fear itself.” Full transcript at Politico:

Now, the very fact that this crisis is largely of our own making means that it is not beyond our ability to solve. Our problems are rooted in past mistakes, not our capacity for future greatness. It will take time, perhaps many years, but we can rebuild that lost trust and confidence. We can restore opportunity and prosperity…

It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious cycles that are crippling our economy – where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit…

I understand that some might be skeptical of this plan. Our government has already spent a good deal of money, but we haven’t yet seen that translate into more jobs or higher incomes or renewed confidence in our economy. That’s why the American Recovery and Reinvestment Plan won’t just throw money at our problems – we’ll invest in what works. The true test of the policies we’ll pursue won’t be whether they’re Democratic or Republican ideas, but whether they create jobs, grow our economy, and put the American Dream within reach of the American people…

It will not come easy or happen overnight, and it is altogether likely that things may get worse before they get better. But that is all the more reason for Congress to act without delay. I know the scale of this plan is unprecedented, but so is the severity of our situation. We have already tried the wait-and-see approach to our problems, and it is the same approach that helped lead us to this day of reckoning.

There’s a cameo near the end by the Ghost of Bailouts Future, too.

Why the hedging about how long it’ll take? Because, like the rest of America’s economic braintrust, he’s not sure it’ll work at all. The furthest he’ll go is to say he’s “confident” it’ll “save or create” three million jobs; if you’re wondering what that means in real terms, just pick the number of jobs that you expect will be lost by 2010 and add three million to that. That’s how many we’ll be told would have been lost if this hadn’t passed. In fact, it’s his own pessimism that explains why he’s been so conciliatory towards the Blue Dogs and the GOP: It’s not about “changing the tone,” it’s about knowing that the ship’s going down and wanting Republicans on deck with him so that they don’t capitalize in the midterms. For reasons that escape me, the GOP’s evidently going to play along even though they’re powerless to stop the stimulus anyway. Maybe McConnell realized that opposing it is now semi-officially unpatriotic.

Pelosi wants it on The One’s desk by February 16 with a return to Hopenchange by summer 2010, according to economic genius/subprime hero Barney Frank. If you think they’re not going to move fast on this, just wait until tomorrow’s jobs report. Good god.


Update: Here’s McConnell doing some hedging of his own. He doesn’t want any “long-term” spending, but happily concedes the need for a short-term stimulus. Which, I take it, is his way of keeping his options open on whether to back the bill by characterizing it appropriately.


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Comment pages: 1 2

The only thing we have to fear is an Obama presidency.

t.ferg on January 8, 2009 at 1:01 PM

only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious cycles that are crippling our economy – where a lack of spending leads to lost jobs which leads to even less spending

Where do I even start?

crazy_legs on January 8, 2009 at 1:02 PM

Green jobs means unemployed. Never forget that.

If you think they’re not going to move fast on this, just wait until tomorrow’s jobs report.

Unfortunately, I’ll probably be adding to that. Thus far, January has been miserable in terms of sales. I’ll probably have to get rid of an employee soon if it doesn’t pick up. Hard to justify someone standing around with nothing to do.

It’s not that people aren’t buying. They aren’t even shopping. Even advertising costs are very low. So they aren’t even trying to look for things to buy right now.

lorien1973 on January 8, 2009 at 1:04 PM

Where do I even start?

crazy_legs on January 8, 2009 at 1:02 PM

By saying:

Government cannot give you anything that it did not first take away.

lorien1973 on January 8, 2009 at 1:04 PM

It will not come easy or happen overnight, and it is altogether likely that things may get worse before they get better.

Obama Translation:
“My main goal is to be reelected in four years so if the economy still stinks, don’t blame me”

RobCon on January 8, 2009 at 1:05 PM

Government got us into this mess and government will keep us in it. Obama preaches socialist nonsense.

rplat on January 8, 2009 at 1:07 PM

We have a 1 trillion dollar budget. The economy is still tanking. Larry Kudlow said this afternoon that 100 billion is allocated to infrastructure a year.

What evidence exists that more Government spending would be any more effective?

Chubbs65 on January 8, 2009 at 1:07 PM

Where do I even start?

crazy_legs on January 8, 2009 at 1:02 PM

I know. Sheesh. This is bad. Real bad. Either he’s never taken Economics 101 or he is the biggest demogogue of all time. Or both.

Pasalubong on January 8, 2009 at 1:07 PM

Chubbs65 on January 8, 2009 at 1:07 PM

3 trillion.

lorien1973 on January 8, 2009 at 1:08 PM

One more time . . . Don’t be sucked in to this Marxist/socialist scam. Obama is intentionally attempting to create as much fear and panic as possible to grease the gears for his massive government spending programs. If he can neutralize the frightened masses and cause them to believe he will save them from economic destruction, his goal of building a socialist state could well be achieved. The only real and enduring power within this country was its free market economy and the capitalist engine that propelled it. Wake up and speak up people, your liberties are disappearing and this once great Republic is about to tumble into an abyss. This is not leadership . . . it’s a psychological blitzkrieg.

rplat on January 8, 2009 at 1:09 PM

Time to get your stuff in order all.

Food items that are shelf goods.
Ammo and guns.
Water bottles.
baby wipes (you may be paying a crap load for water soon).
First Aide kits and medicines.

Hmmmm what else…. fuel?

upinak on January 8, 2009 at 1:09 PM

I’m feeling depressed.

BadgerHawk on January 8, 2009 at 1:09 PM

I’m feeling depressed.

BadgerHawk on January 8, 2009 at 1:09 PM

Me too… if you weren’t married I ask you for a hug.

upinak on January 8, 2009 at 1:10 PM

Hey… I just learned that I’m not getting a COL adjustment in my already pitiful salary which pinches me a little more, especially since my rent will be increasing and every other bill has increased (Natural Gas bill more than doubled this month). And then this moron here is using a bill full ‘o pork and saying that it is “stimulus.” I hate to tell you moron but that ain’t going to help me pay my bills…

Rant over.

Illinidiva on January 8, 2009 at 1:10 PM

Lemme see here

Obie is neck deep in one of the root causes of the current mess, the fannie, freddie, free homes for everyone debacle.

He ‘sought out marxist professors”

His administration is full of the same folks that brought you the fannie freddie scandal

The last great depression was extended by the actions of the government

and he thinks that his government spending us into oblivion will be the answer??

Better stock up on recipies for cardboard soup….

bullseye on January 8, 2009 at 1:11 PM

That’s why the American Recovery and Reinvestment Plan won’t just throw money at our problems – we’ll invest in what works.

Like windmills and General Motors and taxes on carbon. Well now I’m sold. Depression over.

BadgerHawk on January 8, 2009 at 1:12 PM

Illinidiva on January 8, 2009 at 1:10 PM

My Natural gas is going up 22% as of this month, and with the cold snap I am not sure how much it will be for last month on average. How much is yours going up too?

upinak on January 8, 2009 at 1:12 PM

Obama Translation:
“My main goal is to be reelected in four years so if the economy still stinks, don’t blame me”

RobCon on January 8, 2009 at 1:05 PM

That sums it up.

the_nile on January 8, 2009 at 1:13 PM

Me too… if you weren’t married I ask you for a hug.

upinak on January 8, 2009 at 1:10 PM

My wife would let me hug you. But that’s it.

BadgerHawk on January 8, 2009 at 1:13 PM

And everyone says he’s so smart.

He just guaranteed his first term will be a disaster and, because of his own economic stupidity, he’ll be out in ’12. Trust.

For reasons that escape me, the GOP’s evidently going to play along even though they’re powerless to stop the stimulus anyway.

Simple. It’s because they’re unprincipled, uninspired mopes, AP.

Rae on January 8, 2009 at 1:14 PM

Is that Politico video shot on 8mm film or something? Talk about grainy resolution.

BadgerHawk on January 8, 2009 at 1:15 PM

Two words: Cut taxes.

Problem solved.

Dr.Cwac.Cwac on January 8, 2009 at 1:15 PM

only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious…

Can we now stop getting stories about how centrist Obama is going to be…

catmman on January 8, 2009 at 1:15 PM

Now don’t let me say it:

I told you guys not to vote for Obama.

It will be real hard to hold my breath for 4 years but here goes:

3, 2, 1

izoneguy on January 8, 2009 at 1:15 PM

For reasons that escape me, the GOP’s evidently going to play along

Because they have no values any more; they just want to be popular.

Governance as high school.

PattyJ on January 8, 2009 at 1:15 PM

How is he getting away with this? Are the leaders in our country going to let him live out his fantasy of socialism, reparations, and government dependence? Please let the voices of dissent in government get very loud on Jan. 21st…..

sherry on January 8, 2009 at 1:17 PM

Can we now stop getting stories about how centrist Obama is going to be…

catmman on January 8, 2009 at 1:15 PM

He was Senator Government if you remember.

(2nd best line from the campaign…#1 being “This isn’t helping Michelle Obama’s children”)

lorien1973 on January 8, 2009 at 1:18 PM

Umm…I think that bankrupting the country and making most everyone dependent on Mamma Government is the whole point. Once that takes effect all power has been taken from the people.

Itchee Dryback on January 8, 2009 at 1:18 PM

That’s why I’m calling on all Americans – Democrats and Republicans – to put good ideas ahead of the old ideological battles; a sense of common purpose above the same narrow partisanship;

Common purpose = shared misery

He keeps repeating the same socialist lines in every friggin’ speech.

Dr.Cwac.Cwac on January 8, 2009 at 1:18 PM

So he’s channeling Roosevelt?

Okay (as was pointed out yesterday). Prepare for 9 years of depression, a devastating six year World War against a psychotic determined to rid the world of Jews, and America nuking Japan.

Oh, goodie.

mjk on January 8, 2009 at 1:18 PM

Only government can break the vicious cycles that are crippling our economy – where a lack of spending leads to lost jobs which leads to even less spending; where an inability to lend and borrow stops growth and leads to even less credit…

Yes, of course. Only government – that non-productive leech on society’s productivity – can break the cycle of non-productivity.

And only borrowing more of what we don’t have is how to grow money. Because bootstrapping our way to success with creativity and invested partnership is such a loser. Or at least it takes too long between now and his next election.

Yes. It’s a lack of spending that has brought us to this point.

You know, as much as I have turned on Bush for being an idiot in his spending ways, Obama looks to be worse. Which seemed impossible to do.

Oh for a press corps that went to college and took a few accounting and economics courses… but noooooo…

beatcanvas on January 8, 2009 at 1:19 PM

Prediction while Obama is in Office:

Gasoline cost average: 3.95
Average Unemployment: 8-10% and higher in the summer months
Forclosures on houses AND land (private): 20% on average
American Dollar: Will be 3 dollars to every Euro
Private business bankruptcy: 24% average (taxes are the main issue)
Corporate Business bankrutpcy: 26% average (Taxes are the main issue)
Food Costs: will double

Lets see what happens. I am going to email my list to myself fo safe keeping.

upinak on January 8, 2009 at 1:20 PM

I can’t wait to hear all the idiots who screamed bloody murder at a $400B deficit during a growing economy defend a $2 trillion deficit during a contracting economy.

Chuck Schick on January 8, 2009 at 1:21 PM

My Natural gas is going up 22% as of this month, and with the cold snap I am not sure how much it will be for last month on average. How much is yours going up too?

upinak on January 8, 2009 at 1:12 PM

From $15 last year to $35 this year, which was an kind of a shock. It is still not that bad, but the COL is pretty high in Chicago, so every $ counts, especially since we aren’t getting any salary increases this year.

Illinidiva on January 8, 2009 at 1:21 PM

Government got us into this mess and government will keep us in it. Obama preaches socialist nonsense.

rplat on January 8, 2009 at 1:07 PM

It’s a Mad-Off scheme.

the_nile on January 8, 2009 at 1:21 PM

” I’m from the Goverment and I am here to help you” RUN for your life.

calgrammy on January 8, 2009 at 1:21 PM

If things are so dire, why is he asking his poor, beleaguered supporters for even more money?

You know who the left is blaming for this? The evil rich guys. All of this is their fault because everyone knows they haven’t paid any taxes since Bush’s tax cuts went into effect. If only they paid those damn Bush tax cuts, we’d all be fine.

Jeez.

ctmom on January 8, 2009 at 1:21 PM

This crisis did not happen solely by some accident of history or normal turn of the business cycle, and we won’t get out of it by simply waiting for a better day to come, or relying on the worn-out dogmas of the past. We arrived at this point due to an era of profound irresponsibility that stretched from corporate boardrooms to the halls of power in Washington, DC.

as well as community organizing efforts.

For years, too many Wall Street executives made imprudent and dangerous decisions, seeking profits with too little regard for risk, too little regulatory scrutiny, and too little accountability. Banks made loans without concern for whether borrowers could repay them, and some borrowers took advantage of cheap credit to take on debt they couldn’t afford. Politicians spent taxpayer money without wisdom or discipline, and too often focused on scoring political points instead of the problems they were sent here to solve. The result has been a devastating loss of trust and confidence in our economy, our financial markets, and our government.

Caused mainly by Dumbocrats as well as community organizing groups and union strangleholds.

Dr.Cwac.Cwac on January 8, 2009 at 1:21 PM

Are you ready for World War III?

Dr.Cwac.Cwac on January 8, 2009 at 1:22 PM

I’m from government and I want to pump….you up!

lorien1973 on January 8, 2009 at 1:22 PM

only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the vicious…

Can we now stop getting stories about how centrist Obama is going to be…

And to think, it was “only government” that got us into this mess!

jgapinoy on January 8, 2009 at 1:23 PM

Common purpose = shared misery

Dr.Cwac.Cwac on January 8, 2009 at 1:18 PM

I for one look forward to living in perfectly equal mediocrity with my fellow Americans. It’ll be utopia.

BadgerHawk on January 8, 2009 at 1:24 PM

Forget FDR. This sounds way more like Johnson and his War on Poverty.

Only government can break the vicious cycles

Rocks on January 8, 2009 at 1:24 PM

From $15 last year to $35 this year, which was an kind of a shock. It is still not that bad, but the COL is pretty high in Chicago, so every $ counts, especially since we aren’t getting any salary increases this year.

Illinidiva on January 8, 2009 at 1:21 PM

I think I paid 95 for gas (I have a condo/townhouse) in Nov. And I am not sure if I got the Dec. bill yet. But I will let you know what mine went up to when I get the NEW bill. I think I may cry.

upinak on January 8, 2009 at 1:24 PM

…we’ll invest in what works.

That is such a dumb statement.
You don’t know what “works” until its been tried…and then its too late. Try something else, but only if it “works”.

Itchee Dryback on January 8, 2009 at 1:24 PM

upinak on January 8, 2009 at 1:20 PM

At this point an increase in the cost of gasoline would be a good sign for the global economy. However, it is likely to go below $1/gallon before it goes above $3/gallon. Deflation is what is scaring the economic team.

dedalus on January 8, 2009 at 1:25 PM

Obama’s Malaise Speech: “things may get worse”

faraway on January 8, 2009 at 1:25 PM

At this point an increase in the cost of gasoline would be a good sign for the global economy. However, it is likely to go below $1/gallon before it goes above $3/gallon. Deflation is what is scaring the economic team.

dedalus on January 8, 2009 at 1:25 PM

As everyone in the lower 48 pay less the 2.00 I still pay 2.30 and have for a little while now. I have had friends say it went up .27 cents in the last week. I can’t feel sorry for them, as I pay way more.

upinak on January 8, 2009 at 1:26 PM

upinak, Did Russia cut off your gas this week?

faraway on January 8, 2009 at 1:27 PM

Government is the solution!

Where have I heard that song before?

cs89 on January 8, 2009 at 1:27 PM

When Bush told everyone to go out and go shopping to stimulate the economy after 9-11 (which worked for several years to bring the economy up from the doldrums), he was roundly mocked by the same idiots who now think that magically creating new money out of thin air – pretending it’s is created wealth – and injecting it into “infrastructure” and “Democrat mayors” and “unions” and “welfare middle class tax cuts for those not paying taxes” by the trillions is going to “lift” the entire economy.

It would be hysterically laughable if the implications weren’t so dire.

Good Lt on January 8, 2009 at 1:28 PM

upinak, Did Russia cut off your gas this week?

faraway on January 8, 2009 at 1:27 PM

/snorts.. lol!

Umm yes them commies!/s

upinak on January 8, 2009 at 1:29 PM

And to think, it was “only government” that got us into this mess!

jgapinoy on January 8, 2009 at 1:23 PM

There was plenty of private sector mismanagement that contributed to the problem. Lehman blowing up should be blamed on Dick Fuld, but government didn’t understand how severe the ramifications would be for the rest of the economy and by not stepping in they created an even bigger burden for taxpayers.

dedalus on January 8, 2009 at 1:30 PM

We will be where the Germans where after WW1. It will take a wheelbarrow full of dollars just to buy a loaf of bread! Follow Barry s idea of government to fix it will be a disaster!!!!

grapeknutz on January 8, 2009 at 1:31 PM

“What the hells going out out here”????

Ugh, this is depressing.

therightwinger on January 8, 2009 at 1:34 PM

I for one look forward to living in perfectly equal mediocrity with my fellow Americans. It’ll be utopia.

BadgerHawk on January 8, 2009 at 1:24 PM

I suspect it will be more like “Idiocracy”.

rplat on January 8, 2009 at 1:34 PM

We will be where the Germans where after WW1. It will take a wheelbarrow full of dollars just to buy a loaf of bread! Follow Barry s idea of government to fix it will be a disaster!!!!

grapeknutz on January 8, 2009 at 1:31 PM

If we are lucky enough to have an inflation problem in the near future. Right now every country is busy cutting interest rates to zero and devaluing their currency, hoping for reflation.

I’m not a gold bug, but it’s not a bad idea to own some.

dedalus on January 8, 2009 at 1:35 PM

I sincerely hope that the majority of Republicans in Congress tell Obama and the Dems to stick it. We all know this could pass in a heartbeat regardless of how many GOP members come on board, but as we’ve seen with Pelosi and Reid, they don’t wanna sign off on any bill that could cost them politically without being able to pin at least some of the blame on the Republicans. Especially with the boogeyman named Bush no longer around.

This is where the GOP needs to assert itself. Don’t fall into the trap that Obama, the Dems, and the drive bys will set. Being labeled partisan or heartless or even racist is a small price to pay for standing on your principles. Plus they’ll have much more solid ground to stand on in 2-4 years when they go after the Dems for sinking our country into a depression.

Doughboy on January 8, 2009 at 1:36 PM

McConnell needs to go.
He is kissing up to democrats and not representing republicans at all.

jencab on January 8, 2009 at 1:36 PM

So tell me again what the difference between Republicans and Democrats is.

angryed on January 8, 2009 at 1:37 PM

Our government has already spent a good deal of money, but we haven’t yet seen that translate into more jobs or higher incomes or renewed confidence in our economy.

A um, lesser man might look at that evidence and conclude that spending more money won’t translate into more jobs or higher incomes or renewed confidence. He sees the past failures as anomalies. What was the definition of insanity again? Doing the same thing and expecting a different result over and over again.

Great post AP. Agree completely with you how they set it up. It used to be only they will ‘create’ 3 million jobs. It’s already they will ‘create or save’ 3 million jobs. Which means whatever you want it to mean.

Isn’t it wonderful that the most powerful nation on earth is governed by sound bites, stealing money, and pretending to know what you are talking about.

When did getting elected suddenly qualify you as an expert on so many things? I wouldn’t let Barney Frank balance my checkbook. . . but he’s in charge. The government is the biggest problem with this country.

ThackerAgency on January 8, 2009 at 1:37 PM

Here is a guy who has never run a business, never met a payroll, and who has really done nothing for most of his adult life but seek higher office, feeding at the public trough the whole time. But suddenly, he is an economic expert with vision, who publicly predicts trillion dollar deficits for years to come will be necessary to ‘rebuild’ the US economy. This would really be funny if it weren’t my future in jeopardy.

“Share the wealth”, my @$$; what he means is “Share the poverty”.

Wally on January 8, 2009 at 1:39 PM

Everyone you know should be reading this article:

FDR’s policies prolonged Depression by 7 years, UCLA economists calculate

According to the researchers, FDR did these things that were absolutely toxic to economic recovery:

* Pushed wage increases of over 25% above market;
* Allowed collusion between competitors, if they signed labor agreements raising wages per above; and
* Relaxed anti-trust enforcement also, same as allowing collusion between competitors.

One thing the article hints at, but misses: when NIRA (National Industrial Recovery Act) was enacted, it faced a challenge at the Supreme Court and was struck down two years later – and coincidentally, FDR wanted to stack the Court by significantly increasing the number of judges (the new ones all of which would be FDR appointees).

Protectionist legislation + high wages = high costs.

High costs = drag on recovery.

Which is exactly what the Left pines for, to keep the plebes dependent on the State.

Barry knows exactly what he’s doing.

Wanderlust on January 8, 2009 at 1:40 PM

McConnell needs to go.
He is kissing up to democrats and not representing republicans at all.

jencab on January 8, 2009 at 1:36 PM

I don’t get what happened to him. He was (can’t believe I have to use past tense) a conservative rock and never backed down from a fight– unless he cut a deal about something in the future. I kinda understand not wanting to be pit bull right out of the gate, but this plan is New Deal + Great Society x Jimmy Carter. Stand up for principles, man.

Pasalubong on January 8, 2009 at 1:40 PM

Illinidiva on January 8, 2009 at 1:10 PM

My Natural gas is going up 22% as of this month, and with the cold snap I am not sure how much it will be for last month on average. How much is yours going up too?

upinak on January 8, 2009 at 1:12 PM

My bill (Georgia) is going down. I signed a one year contract with SCANA last month that substantially reduced the rate I pay per therm, and locks the rate in. If rates were to decrease even further I could get out of the contract, with a one time $50.00 fee and then get a new contract at an even lower rate.

Do you not have any choice as to who your gas provider is?

Buy Danish on January 8, 2009 at 1:40 PM

Illinidiva on January 8, 2009 at 1:10 PM

Quit yer crying. If you don’t like your job, go get something better. COL, give me a break. That sounds like union and/or government work talk.

As for rent increases….you have to be kidding me. Rents are falling across the land. Negotiate with your landlord. If he says no, there are probably 10 others will will rent you the same apartment/house for less than what you’re paying today.

angryed on January 8, 2009 at 1:41 PM

Recessions are just the process by which the economy adjusts and purges its wasteful elements. The only way that you can keep the economy down is by keeping these adjustments from happening, like FDR did.

You know what would accelerate the economy? First, get rid of the minimum wage, and reduce unemployment benefits. Next, flatten the tax system, and eliminate the double taxation of business profits (keeping the capital gains tax low is also a good idea). Let businesses that took irresponsible risks fail, and let the investors that let them loose their money.
The recession (or perhaps depression) will be prolonged insomuch as P.BO and Congress act contrary to this.

Count to 10 on January 8, 2009 at 1:43 PM

Our government has already spent a good deal of money, but we haven’t yet seen that translate into more jobs or higher incomes or renewed confidence in our economy.

That’s why the American Recovery and Reinvestment Plan won’t just throw money at our problems – we’ll invest in what works.

Opening sentence meet closing sentence, Obie. What works apparently is not government spending a lot of money to “stimulate” the economy.

PackerBronco on January 8, 2009 at 1:43 PM

On a media note, who is advising Mr. O on his TelePrompTer placement?

He’s looking at the “campaign-era” monitors set at 45-degree angles from the camera. Yet, he’s got no straight-on monitor so he can address the viewing audience.

Unless he wants every address to look like a State of the Union message, he’d better rethink the look-left, look-right speech style.

DarthBrooks on January 8, 2009 at 1:45 PM

Do you not have any choice as to who your gas provider is?

Buy Danish on January 8, 2009 at 1:40 PM

I wish… they are monopolies up here. I could do the yearly flat fee, but since I just got this house. I have to be here a year before they start the yearly flat fee.

That can also work with our electric. But my electric goes from 150 in the winter to 14 dollars in the summer.

upinak on January 8, 2009 at 1:46 PM

Opening sentence meet closing sentence, Obie. What works apparently is not government spending a lot of money to “stimulate” the economy.

PackerBronco on January 8, 2009 at 1:43 PM

No no no , NOW they will do what works, it’s different this time , promise.

the_nile on January 8, 2009 at 1:50 PM

Go vote, here.

Entelechy on January 8, 2009 at 1:50 PM

it is not beyond our ability to solve We just haven’t figured out how to just yet

we can rebuild that lost trust and confidence. By lying about having any kind of plan.

We can restore opportunity and prosperity Yes we can. I think we can. Can’t we?

only government can provide the short-term boost necessary to lift us from a recession this deep and severe Government put us in this mess, so government can bail us out.

Only government can break the vicious cycles that are crippling our economy How?

I understand that some might be skeptical of this plan. What plan?

I know the scale of this plan is unprecedented When do we get to see the plan?

Just another campaign speech. The wordsmith is shooting blanks again. Anyone else notice that CBS, NBC and ABC broke into their regular programing this morning to carry the drivel speech of this dude who isn’t even president yet.

I think I’m going to puke.

fogw on January 8, 2009 at 1:51 PM

Wanderlust on January 8, 2009 at 1:40 PM

“As we’ve seen in the past several years, salaries and prices fall when unemployment is high. By artificially inflating both, the New Deal policies short-circuited the market’s self-correcting forces.”

That’s the money quote from the article.

Count to 10 on January 8, 2009 at 1:53 PM

I think I’m going to puke.

fogw on January 8, 2009 at 1:51 PM

And this is why I was in such a morose state on Nov. 5.

Count to 10 on January 8, 2009 at 1:55 PM

Go to the headlines guys.. McCain is talking immigration again!

upinak on January 8, 2009 at 1:58 PM

Wanderlust on January 8, 2009 at 1:40 PM
The policies were contained in the National Industrial Recovery Act (NIRA), which exempted industries from antitrust prosecution if they agreed to enter into collective bargaining agreements that significantly raised wages. Because protection from antitrust prosecution all but ensured higher prices for goods and services, a wide range of industries took the bait, Cole and Ohanian found. By 1934 more than 500 industries, which accounted for nearly 80 percent of private, non-agricultural employment, had entered into the collective bargaining agreements called for under NIRA.

Cole and Ohanian calculate that NIRA and its aftermath account for 60 percent of the weak recovery. Without the policies, they contend that the Depression would have ended in 1936 instead of the year when they believe the slump actually ended: 1943.

So, can we not make the same mistake again? Please?
The minimum wage and card check are versions of this.

Count to 10 on January 8, 2009 at 1:58 PM

I thought his mantra was “one President at a time”? I guess that only applies to issues he doesn’t want to state his opinion on like the Israeli Action. What an empty suit.

kingsjester on January 8, 2009 at 1:59 PM

I just put the whole farm on sweater futures.

Chuck Schick on January 8, 2009 at 2:00 PM

I know the scale of this plan is unprecedented When do we get to see the plan?

I think I’m going to puke.

fogw on January 8, 2009 at 1:51 PM

You will never see the real plan because these are reparations in disguise and pay back for the unions and other scum, who don’t think and were easily on board. Now they’re just getting rewarded for it.

Entelechy on January 8, 2009 at 2:00 PM

as things get worse, they will claim it would’ve been even worse than it is if they weren’t doing what they will do.

Its the job of the GOP and whatever media that will to expose this fraud and to re-vist Great Depression history and blame the real culprits: FDR

jp on January 8, 2009 at 2:01 PM

I just applied for a government job. My husband already has one, though it’s in New Jersey, so I wouldn’t be surprised if it gets cut eventually. I doubt either of us will work in the private sector again.

We’re in a classic bubble/crash cycle. The reason it has affected the entire world economy is that so many areas of debt and investments in that debt went back to an overinflated U.S. housing market. I worked the last 13 years in the mortgage industry, and I really don’t know what could have been done much differently to have avoided either the bubble or the crash. The world was awash in investment dollars that wanted to go where the returns were the highest. First that was in tech stocks, and when that bubble burst, the money went into real estate. (And this summer it went into oil and created yet another bubble, but since the oil crash hasn’t caused average people any pain this gets overlooked.) It wasn’t bad government or greedy Wall Street, it was human nature and the nature of investors who will always seek the highest returns on their money.

Now all of those investors have basically gone to the mattresses and don’t want to risk their money anywhere. That’s also human nature. And Barack Obama can’t do a damn thing about this, as most of the big investors are in Asia and Europe now. Eventually they will stick their toes back into the water, and later they will dive back in. Even subprime mortgage lending will eventually come back.

What the government ought to be doing is telling people what is really happening and trying to do as much as possible to mitigate the pain while the credit market thaws out on its own. This is where some of the liberals are right – put some dollars toward extending unemployment benefits, shoring up big employers like GM, and helping homeowners stay in their homes. Also some help for state and local governments would be a good idea, as the overall economic contraction is causing them to lose huge tax revenues through no fault of their own, and cutbacks or tax increases by state and local governments will exacerbate the recession.

rockmom on January 8, 2009 at 2:03 PM

How long till we start rationing food and energy? next winter?

Confronting russia will give them the perfect opportunity to exploit all this, institute a draft and sale their economic idiocy using the moral equivalent of war.

jp on January 8, 2009 at 2:03 PM

Government only has what they have taken or we have given…they produce nothing, they only consume.
Therefore, any money to the gov. must come back less.
This is so simple, yet so many ignore it. The only reason to send money to the Gov, or the only reason why they take it, is to hold us hostage.

right2bright on January 8, 2009 at 2:03 PM

Entelechy on January 8, 2009 at 2:00 PM

In Barryville,

plan = random thought

fogw on January 8, 2009 at 2:06 PM

“The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes,” Cole said. “Ironically, our work shows that the recovery would have been very rapid had the government not intervened.”

Count to 10 on January 8, 2009 at 2:06 PM

Quit yer crying. If you don’t like your job, go get something better. COL, give me a break. That sounds like union and/or government work talk.

As for rent increases….you have to be kidding me. Rents are falling across the land. Negotiate with your landlord. If he says no, there are probably 10 others will will rent you the same apartment/house for less than what you’re paying today.

angryed on January 8, 2009 at 1:41 PM

Yes… I hate my job and have been looking for two years for a new one. I have a kind of niche job so it’s hard to find a new one. Also, if you haven’t noticed, there’s kind of a recession on and jobs aren’t in the supply they were once in. I’m not sure that I want to apply for the Messiah’s ditch digging program as I have accounting degree. I did apply to some grad. programs, but again there are more applicants because of the tough economy, so I’m not counting on that happening.

As for my apartment, I live in Evanston and as everyone familiar with the area can attest to my rent, $775/ month is pretty reasonable. I expect that it will go up to $800/ month. I also go through a large company, because it is much better servicewise. I did rent from a couple a few years ago, but was really ripped off. I had to threaten to sue to get my security deposit back. So the only way for me to actually spend less money is to move in with a roommate (ughh… I hate living with other people) or move to a ghetto-y area of Chicago like Pilsen or Rogers Park.

My main whine here is that instead of helping people who have found money tight as companies cut back on merit increases (COL based on performance, which is what I have) and bonuses/ payouts is to cut taxes. Obama could have announced a temporary suspension of payroll taxes or a temporary cut in the income tax, instead he decided to focus on gov’t ditch digging.

Illinidiva on January 8, 2009 at 2:09 PM

Obama is right. Government CAN break the “vicious cycle” of the economy. If you don’t believe him, just look at Cuba, or the old Soviet Union.

No more annoying peaks of prosperity to disillusion us. The cycle will be dead! Won’t it be great?

hawksruleva on January 8, 2009 at 2:09 PM

My bill (Georgia) is going down. I signed a one year contract with SCANA last month that substantially reduced the rate I pay per therm, and locks the rate in. If rates were to decrease even further I could get out of the contract, with a one time $50.00 fee and then get a new contract at an even lower rate.

Do you not have any choice as to who your gas provider is?

Buy Danish on January 8, 2009 at 1:40 PM

Nope… I live in an apartment and even then I think that Nicor is the only one who services the area.

Illinidiva on January 8, 2009 at 2:10 PM

This is where some of the liberals are right – put some dollars toward extending unemployment benefits, shoring up big employers like GM, and helping homeowners stay in their homes.
rockmom on January 8, 2009 at 2:03 PM

Actually, this is backward. We need to cut unemployment benefits, let the housing market fall as long as it wants to, and let inefficient and failed companies like GM collapse. We need people motivated to work, not sitting idle, and we need investors to invest in things that work, not things that the government wishes worked.

Count to 10 on January 8, 2009 at 2:13 PM

Count to 10: I like your thinking. Something else that might help, and is backwards enought that Congress might bite: a 1-year tax holiday on income taxes. That way they could say they weren’t really SPENDING more money, and rich and poor alike would have more money in their pocket.

Of course, it wouldn’t spur any long-term investment, but clearly the government has no interest in promoting that.

hawksruleva on January 8, 2009 at 2:15 PM

McConnell needs to go.
He is kissing up to democrats and not representing republicans at all.

He’s trying to do the same thing the dems did when they voted for the patriot act and the iraq war, which allowed the moderate “blue dog” dems to get cover in red states, but kept just enough distance so they could turn around and blame it all on Bush when the war became unpopular, winning voters in blue states.

I think he’s being way too clever by half – the media won’t play along with him the way they did with pelosi and reid. But we shall see.

kcewa on January 8, 2009 at 2:18 PM

problem I see with just letting the housing market fall and fall, is so many Americans would be very upside down in their mortgages and may never get out of debt and be a complete slave to their homes. It is already 1 in 6 americans in this situation atleast.

plus, if incomes fall with the deflation, then you make less money but your payments on all of your past debt remain the same, based on old dollars.

jp on January 8, 2009 at 2:19 PM

Our problems are rooted in past mistakes, not our capacity for future greatness. It will take time, perhaps many years, but we can rebuild that lost trust and confidence. We can restore opportunity and prosperity…

Let me guess, our past mistakes are capitalism and liberty, and our future greatness is socialism and Obama worship.

Grafted on January 8, 2009 at 2:29 PM

Count to 10: I like your thinking. Something else that might help, and is backwards enought that Congress might bite: a 1-year tax holiday on income taxes. That way they could say they weren’t really SPENDING more money, and rich and poor alike would have more money in their pocket.

Of course, it wouldn’t spur any long-term investment, but clearly the government has no interest in promoting that.

hawksruleva on January 8, 2009 at 2:15 PM

Wouldn’t really do anything useful. You would have a rush to get a lot of income on the books for that year, but, because it isn’t long term, the effect on actual production will be minimal. You would kill investment by soaking up funds to deficit spend.
Now, it the government took a 1 year holiday from paying entitlements, then you would see the economy take off. Could get messy though.

Count to 10 on January 8, 2009 at 2:30 PM

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