Ryan: Obama is copying Euronomics that Europe now rejects

posted at 3:15 pm on June 18, 2010 by Ed Morrissey

How often does a conservative Republican say in public, “I actually agree with Europe”? Perhaps only when the current President insists on setting a economic-policy course that tacks to Europe’s left.  The EU wants to start scaling back government spending in order to stabilize its precarious debt position, but Barack Obama warned them today to keep the spigots wide open.  Rep. Paul Ryan says it’s just a cover to get progressive wish-list programs into law by exploiting the economic crisis:

A few key quotes:

We are doubling down on this neo-Keynesian borrow and spend spree. It’s not working. We’ve lost 3.6 million jobs since the last stimulus was passed and they want to do more of the same. Bailing out state governments is the next roll of the dice. We are copying European economic policies of the past and that is going to give us a European kind of debt crisis in the future if we don’t change our policies. Yet the President is doubling down, giving us a big debt hangover. …

The President got those same centrist Democrats to vote for a budget that doubles our debt in five years and triples our debt in ten years. He got those same centrist Democrats to vote for $1.8 trillion dollars in new spending and $670 billion in new taxes in this session of Congress. He has always gotten, along with Speaker Pelosi, the votes needed to engage in their continued spending spree. …

What we have right now is a neo-Keynesian model being pushed, which means spend, spend, spend — and they still have no problem with all of these tax increases. This economic doctrine conveniently fits a political ideology. This political agenda is built upon building government programs, building up spending — and they use this economic doctrine to satisfy their political pent up demand. The so-called “stimulus” was not about jobs as much as it was spending money on all these programs that they have wanted to spend on for a long time. Now that they have Congress and the White House, the spending spigot is wide open.

The New York Times reports that Obama is feeling a little lonely on the Big Spender front:

President Obama signaled on Friday that countries in Europe should not withdraw their extraordinary spending programs too quickly.

In a public letter to other leaders of the Group of 20 nations in advance of a summit meeting in Toronto next week, Mr. Obama wrote, “Our highest priority in Toronto must be to safeguard and strengthen the recovery.” …

Mr. Obama also wrote, “We must be flexible in adjusting the pace of consolidation and learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession.”

That statement represented a signal to Germany and other European countries, which have moved in recent weeks to pare spending, mindful of the wrenching consequences of excessive public debts in Greece, Portugal and Spain. The United States is trying to pare its own substantial deficit. Mr. Obama reiterated a pledge to cut the deficit, now about 10 percent of gross domestic product, in half by the 2013 fiscal year, and to 3 percent of G.D.P. by the 2015 fiscal year, a level he said would “stabilize the debt-to-G.D.P. ratio at an acceptable level” by then.

But American officials are concerned that fiscal retrenchment by too many countries at once could imperil the global recovery.

They’re probably not too concerned that the US will stop spending, not with this Congress and White House.  The problem is that the spending spree isn’t working.  In fact, it’s counterproductive, as it sends strong signals of pending tax increases and higher costs in the near- and long-term future.  Those with capital are sheltering it rather than investing, and as a result businesses are not expanding or creating new opportunities.

Europe has already learned its lesson, thanks to a painful bailout of Greece that may or may not succeed, and the likelihood that they’ll have to rescue Spain as well.  The Obama administration has not.


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Comments

Europe has already learned its lesson, thanks to a painful bailout of Greece that may or may not succeed, and the likelihood that they’ll have to rescue Spain as well. The Obama administration has not.

Obama has chosen not to see it.

ladyingray on June 18, 2010 at 3:21 PM

President Obama signaled on Friday that countries in Europe should not withdraw their extraordinary spending programs too quickly.

To which Europe should flip him the bird.

Daggett on June 18, 2010 at 3:21 PM

Obama has chosen not to see it.

ladyingray on June 18, 2010 at 3:21 PM

exactamundo

cmsinaz on June 18, 2010 at 3:21 PM

The Shermanesque statement saddened me.

Greek Fire on June 18, 2010 at 3:21 PM

“Cloward, meet Piven.”

Akzed on June 18, 2010 at 3:22 PM

Yeah, but the Obamunists will do it better. Screw you Europe! We’ll show you a real disaster!

RadClown on June 18, 2010 at 3:23 PM

Umm actually, Obama is going after the Communist Idealology… Europe isn’t quite that bad compared to a Communist Regime. Keep trying Ryan.

upinak on June 18, 2010 at 3:24 PM

When it is proven that the American voter has learned the lesson, we can all move forward.

WashJeff on June 18, 2010 at 3:25 PM

learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession.

What?
When? Where?

Count to 10 on June 18, 2010 at 3:27 PM

“Our highest priority in Toronto must be to safeguard and strengthen the recovery.”

I can see the recovery from my front porch.

chemman on June 18, 2010 at 3:29 PM

Not just ordering Americans around, and business leaders, now the Whine wants to order other countries around too?

L’il Duce indeed.

rbj on June 18, 2010 at 3:29 PM

OT: Gallup: Majority doesn’t want Obama reelected.

51%-46%

Bat Chain Puller on June 18, 2010 at 3:29 PM

What?
When? Where?

Count to 10 on June 18, 2010 at 3:27 PM

Don’t you realize that as soon as Obama says something, it’s a fact? It doesn’t matter if it was false before he said it.

Daggett on June 18, 2010 at 3:29 PM

The Great Depression was just the Depression in the rest of the world. In the U.S., the Depression was Great because it continued at least until the outbreak of WW II. The difference? Mainly continued government spending and mucking about with the U.S. economy.

If Obama is saying one lesson of the past is that a decade of spending is not long enough to spend to get the economy out of a problem, I’d like to hear him make that case.

hawksruleva on June 18, 2010 at 3:29 PM

BTW Bart Stupak is already coming up with new ideas for spending chunks of the $20 billion shakedown fund from BP.

This free hand to misappropriate is what happens when money is extorted extralegally, instead of in a lawfully adjudicated way.

http://www.realclearpolitics.com/video/2010/06/17/stupak_legitimate_for_bp_escrow_account_to_fund_health_care.html

Edouard on June 18, 2010 at 3:34 PM

“The difference here: Europe doesn’t have me.”

-PBHO

Bishop on June 18, 2010 at 3:34 PM

OT: Gallup: Majority doesn’t want Obama reelected.

51%-46%

Bat Chain Puller on June 18, 2010 at 3:29 PM

Gallup polls adults. Imagine what registered and likely voters are thinking.

Doughboy on June 18, 2010 at 3:35 PM

Who’s Barry’s Economics Czar, Bill Ayers or Reverand Wright?

The people have a right to know.

NoDonkey on June 18, 2010 at 3:39 PM

“Rep. Paul Ryan says it’s just a cover to get progressive wish-list programs into law by exploiting the economic crisis:”

Does anyone remember that sh%t eating grin on Nancy Pelosi’s face when Obowma was elected and she sat in the house and told the Democrats that programs that have been waiting for years would now be funded?

Seven Percent Solution on June 18, 2010 at 3:39 PM

Obama is in charge of the World Recovery and Reinvestment Act, who could have guessed?

fourdeucer on June 18, 2010 at 3:41 PM

Well Mr. ryan if YOU wouldn’t have voted for TARP, Stimulus and the auto bailout maybe Obama wouldn’t have the power nor money to implement euroeconmics

unseen on June 18, 2010 at 3:42 PM

How the Road to Socialism is Paved

One of the more insidious aspects of the government takeover is how such takeovers are pitched as reforms. Of course reform traditionally applies to institutions reforming themselves or being reformed by their constituents or shareholders. The idea of government reforming the private sector smacks of unlimited authority, which is exactly what it is. And so a government that cannot reform itself, that cannot stop its out of control spending, its constant legislative corruption, its culture of pork and kickbacks, its compulsive need to appropriate power, sets out to instead take over every aspect of life within the country in the name of reform.

Tav on June 18, 2010 at 3:44 PM

“…learn from the consequential mistakes of the past when stimulus was too quickly withdrawn and resulted in renewed economic hardships and recession.”

Does anyone have an example of this? I know the Dems are fond of invoking the Great Depression, but the post-war reduction in govt. spending back then didn’t “renew” economic hardships (as many Progressives insisted it would). To the contrary, when government finally got out of the way the economy took off under its own steam.

I hope Europe is learning not to take advice from this fool.

Dee2008 on June 18, 2010 at 3:45 PM

I am soo sick of these hypocrites like Rayan and JD Hayworth who have been part of the problem. who voted for the massive government spending under Bush, who voted for Trillions in new government spending like Medicare part D and then they try to say Obama is spending us into the abyss. I mean come on…..

unseen on June 18, 2010 at 3:46 PM

OT: Gallup: Majority doesn’t want Obama reelected.

51%-46%

Bat Chain Puller on June 18, 2010 at 3:29 PM

“They wont need to reelect me..”

the_nile on June 18, 2010 at 3:46 PM

Europe has already learned its lesson, thanks to a painful bailout of Greece that may or may not succeed, and the likelihood that they’ll have to rescue Spain as well. The Obama administration has not.

Au contraire. Obama knows his lesson plan very well. His goals are just not at all the same as yours. It may look to you like he is on the wrong road but that is because he is not going where you are going.

Tav on June 18, 2010 at 3:50 PM

Great line at the end there.

echosyst on June 18, 2010 at 3:50 PM

Gallup polls adults. Imagine what registered and likely voters are thinking.

Doughboy on June 18, 2010 at 3:35 PM

Usually you’re right, but this poll was of “registered voters”.

Still, like you, I don’t trust Gallup.

aquaviva on June 18, 2010 at 3:53 PM

Mr. Obama wrote, “Our highest priority in Toronto must be to safeguard and strengthen the recovery.” …

Translation: “If you guys come to your senses and stop spending, how will I be able to take over the world?”

PattyJ on June 18, 2010 at 3:54 PM

Who’s Barry’s Economics Czar, Bill Ayers or Reverand Wright?

The people have a right to know.

NoDonkey on June 18, 2010 at 3:39 PM

I think he channels Karl Marx and Al Capone.

Tav on June 18, 2010 at 4:01 PM

The problem Europe is having is that they have run out of their own people’s money to spend. Obama doesn’t really have to worry about that yet though. The American people don’t have to put up a lot of their own money because Obama can still spend China’s money. Of course China will want their money back someday…

Dawnsblood on June 18, 2010 at 4:03 PM

Cloward Piven.

Anyone really think this isn’t by design?

Fundamental change.

WisCon on June 18, 2010 at 4:04 PM

It’s not just the USA that Obama is working so hard on destroying, it is the entire western world.

jukin on June 18, 2010 at 4:20 PM

I am soo sick of these hypocrites like Rayan and JD Hayworth who have been part of the problem. who voted for the massive government spending under Bush, who voted for Trillions in new government spending like Medicare part D and then they try to say Obama is spending us into the abyss. I mean come on…..

unseen on June 18, 2010 at 3:46 PM

If this plan of Ryan’s could be put into effect and it would actually do what actuaries predict, I think we could all forgive him his past indiscretions!

http://spectator.org/archives/2010/04/09/the-man-with-the-plan/

Marybeth on June 18, 2010 at 4:22 PM

“The Obama administration has not.”

While Ryan did couch his arguments in ‘Obama is the leader of the Democrat Party’ implications, it was good to see that he fundamentally laid the blame at the feet of Democrats, and he was clearer in qualifying that with “centrist” Democrats.

That is interesting. The centrist qualifier is both true but, politically speaking, it helps to keep them from weaseling out of the blame on the campaign trail.

I’m really liking this Ryan’s savvy approach to punching back twice as hard.

Dusty on June 18, 2010 at 4:25 PM

If this plan of Ryan’s could be put into effect and it would actually do what actuaries predict, I think we could all forgive him his past indiscretions!

http://spectator.org/archives/2010/04/09/the-man-with-the-plan/

Marybeth on June 18, 2010 at 4:22 PM

possibly but I would like to see him release this on an off election year. congresscritters tend to change their spots on those off-year elections

unseen on June 18, 2010 at 4:29 PM

Not just ordering Americans around, and business leaders, now the Whine wants to order other countries around too?

L’il Duce indeed.

rbj on June 18, 2010 at 3:29 PM

He has been doing this for a while now, remember a few weeks back he was browbeating Merkel on the greek bailout, for which her party lost a key election in N. Germany which cost her the majority. The closer your ties to the US the more BHO will bully you as he uses those ties as leverage, who wants to find themselves on the wrong side of the most [powerful man in the world?

Unfortunately this does not extend to the wannabe tyrants with whom he wishes to co-opt in bid for global power. He wants spread his brand of collectivism to lesser and medium powers of like mind, you can almost trace his intentions by following where the SEIU is opening offices supposedly ‘consulting’. There are youtube vids where sStern outlines this operation.

The reason he and the SEIU limit their outreach to smaller & medium powers (excepting India & Australia whose democratic and therefore susceptable like us)is that, 1)they want the largesse of our treasury and access to our arms industry, and 2) Totalitarian regimes like Russia and China don’t trust a man so like themselves and are in competition trying to do the exact same thing. Iran is impenetrable and likely to become a major power when it gets the bomb this year or next, so thats a no-go as well.

Stern’s quest to go global in Africa, SA, India is seeding the syndicalist ambitions of the ‘progressive movement’ from which, if sucessful, they would engage in a competition for hedgemony with imperialist Russia and expansionist China. This of course is a blueprint for WWIII and the greatest threat to human kind, the only hope for any semblance of peace is to defeat the progressives here and now.

We must not falter, we must not blink or get into squables between fiscal and social conservatives, not now. As Mitch Daniels started a firestorm with recently, we must declare a truce. The consequences of failure are too terrible to contemplate.

Archimedes on June 18, 2010 at 4:32 PM

It’s not just the USA that Obama is working so hard on destroying, it is the entire western world.

jukin on June 18, 2010 at 4:20 PM

Turning and turning in the widening gyre
The falcon cannot hear the falconer
Things fall apart; the centre cannot hold
Mere anarchy is loosed upon the world
The blood-dimmed tide is loosed, and everywhere
The ceremony of innocence is drowned
(William Butler Yeats)

Tav on June 18, 2010 at 4:37 PM

Does this Administration remind anyone else of the Taliban? Replace religious fanaticism with social fanaticism and see the parallels. Obama will undermine our economy without any regard to long term sustainability so long as he can implement his socialistic wet dream agenda. It’s the same myopic world view and fanaticism that we abhor in the Taliban…sitting in our oval office on PA Ave.

DrW on June 18, 2010 at 4:38 PM

Slightly off topic, but closely related

Greenspan v. Krugman…outstanding analysis near the end of this piece.

http://www.businessinsider.com/krugman-greenspan-2010-6

DrW on June 18, 2010 at 4:39 PM

Say Barry, how’s the economy coming along?

GarandFan on June 18, 2010 at 4:43 PM

“Its not a very high bar to clear”

Oh BURN!!!

Spectreman on June 18, 2010 at 4:56 PM

I am soo sick of these hypocrites like Rayan and JD Hayworth who have been part of the problem. who voted for the massive government spending under Bush, who voted for Trillions in new government spending like Medicare part D and then they try to say Obama is spending us into the abyss. I mean come on…..

unseen on June 18, 2010 at 3:46 PM

Part D was a spending increase, but at least it was paid for and not just put on the credit card.

JeffVader on June 18, 2010 at 5:00 PM

A one term President who plans on taking his country down with him.

albill on June 18, 2010 at 5:12 PM

Tom Sowell’s Latest Column is a must read.

gh on June 18, 2010 at 5:22 PM

Part D was a spending increase, but at least it was paid for and not just put on the credit card.

JeffVader on June 18, 2010 at 5:00 PM

the long term impact is rated at an $8 trillion unfunded liability. Just add it to the credit card bill.

Until the GOp starts attacking their careless spending ways as well as the dems I do not see a light at the end of the tunnel. that is why I so spourt the new kids on the block. Like haley, angle, Carly, Palin, christie etc. At least they are not tainted with the liberal wing of the GOP party.

unseen on June 18, 2010 at 5:23 PM

Paul Ryan is our last, great hope…

PLEASE run for President in 2012…

Khun Joe on June 18, 2010 at 5:46 PM

“Our highest priority in Toronto must be to safeguard and strengthen the recovery.”

ObaMao the Economic Dunce had better safeguard his backside when he heads to Toronto. Americans are being warned to stay away while the 20-nation summit takes place. The anarchists are planning to destroy yet another city.

That interview with Rep. Paul Ryan was terrific. I loved his closing remark about the bar of economic understanding in Congress not being too high. Keep up the good fight, Paul. We need you in the House to keep an eye on the federal purse.

onlineanalyst on June 18, 2010 at 6:17 PM

L’il Duce indeed.

rbj on June 18, 2010 at 3:29 PM

I guess that we could call the ObaMao adminstration the L’il Duce Coup. (If you know what I mean.)

onlineanalyst on June 18, 2010 at 6:32 PM