Obama WH gives its economic policies a good, solid F+

posted at 12:15 pm on July 26, 2010 by Ed Morrissey

Of all Fridays to conduct a news dump, last Friday may have been the best.  The conservative grassroots and the progressive organizations busied themselves in Las Vegas, and the political media turned its attention to Sin City.  The Wall Street Journal minded the store, however, and noticed the late release of the White House’s semi-annual budget review.  It’s easy to see why the Obama administration didn’t want to draw any attention to it (via Instapundit):

Democrats have been running Congress for nearly four years, and President Obama has been at the White House for 18 months, so it’s not too soon to ask: How’s that working out? One devastating scorecard came out Friday from the White House, in the form of its own semi-annual budget review.

The message: Tax revenues are smaller, spending is greater, and the deficits are thus larger than the White House has been saying. No wonder it dumped the news on the eve of a sweltering mid-July weekend.

In fact, deficits grew even as the White House claimed that the economy grew, even at the anemic pace we’ve seen thus far.  Their projection for future growth is ambitious — greater than 4% starting in 2012 after slowly accelerating this year and next, which the White House claims will reduce the deficit naturally through greater revenues.  The WSJ points out the fallacy of that fantasy:

The White House predicts revenues will rise sharply after that, as it also assumes the economy will grow by more than 4% in each of 2012, 2013 and 2014. The last time the economy grew that rapidly for that long, however, was from 1997-2000 and from 1983-1985. In both of those cases, taxes were falling. The Obama White House plans a huge tax increase next year, followed by the ObamaCare tax hikes that hit in 2013, and that’s before whatever else the President’s deficit commission recommends. …

The Reagan Administration also pursued fiscal stimulus, but its policy choice was permanent across-the-board cuts in marginal tax rates. Revenue didn’t fall nearly as much as Keynesian economists predicted it would, and the economy roared back. Growth and spending restraint then reduced the deficit over time.

Democrats by contrast have pursued stimulus by spending and temporary tax rebates for selective constituencies. They did so first in concert with President George W. Bush, who was intellectually and politically tapped out, in February 2008. Then they did so again, on hyperdrive, with the February 2009 stimulus. They are now doing it again on a smaller scale with another burst of jobless benefits, adding some $30 billion to the deficit.

To put it another way, Democrats have been undertaking a vast fiscal policy experiment, blowing out the federal balance sheet in an effort to show that a country can spend and tax its way to prosperity. Look no further than the numbers in the White House’s own budget review for the unhappy lab results.

This was the subject of my speech to Right Online.  We have spent the past two years pursuing the policies that failed in the 1970s, such as large government interventions in labor and goods markets and the imposition of massive regulatory regimes intended to manage the economy from the top down.  We’re ignoring the policies that succeeded in the 1980s that eventually provided the antidote to the Keynesianism of the Nixon-Ford-Carter years, and that touched off a massive expansion of the American economy.

The semi-annual review shows that the Obama administration still hasn’t learned its lesson.  It’s akin to having a money-losing product but trying to convince the bank that you can make up the losses in volume sales.  At its heart, Obamanomics holds a central flaw: the idea that government acts as a multiplier to capital rather than a diluter and destructor of capital.  The more capital it confiscates for its central-planning economics, the less we have for real growth.  Some government oversight is necessary to prevent fraud and theft, but even that doesn’t act as a multiplier for the capital it consumes; it’s merely the rational cost of doing business.

Barack Obama still hasn’t learned that, but the voters have begun to figure it out.


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Gee, who’da thunk it?

JamesLee on July 26, 2010 at 12:19 PM

I never knew you could put a + behind an F to make it look somewhat more appealing.

deidre on July 26, 2010 at 12:20 PM

Bush’s fault…

right2bright on July 26, 2010 at 12:20 PM

Barack Obama still hasn’t learned that, but the voters have begun to figure it out.

The $64,000 question though is, have the taxpaying voters figured it out yet?

txmomof6 on July 26, 2010 at 12:22 PM

Arrogant, thin-skinned and socialist is no way to go through life, son.

Cicero43 on July 26, 2010 at 12:22 PM

“Obama WH gives its economic policies a good, solid F+”

At last, some truth out of the White House? IMO they are well aware their policies would never work, and they were implemented for that very reason! Proof you say? History, history, history!

GFW on July 26, 2010 at 12:22 PM

But he created 3 million jobs…

right2bright on July 26, 2010 at 12:23 PM

deidre, off topic I know ,but when my son was in junior high one of his teachers gave him an F+. We thought it was outrageous so my husband negotiated a D minus . Meant he passed. Left public school for private Catholic school and did fine.

sandee on July 26, 2010 at 12:24 PM

F…….piff……..

F minus,nope,

F minus to a trillion!!!

canopfor on July 26, 2010 at 12:25 PM

Where does the “+” come from? I don’t see it.

Cicero43 on July 26, 2010 at 12:25 PM

We have replace the “failed policies of the last 8 years” with the even worst policies of B.H.Obama

J_Crater on July 26, 2010 at 12:26 PM

“Tax revenues are smaller, spending is greater, and the deficits are thus larger than the White House has been saying…”

I blame whitey…

Seven Percent Solution on July 26, 2010 at 12:26 PM

F minus to a trillion!!!

canopfor on July 26, 2010 at 12:25 PM

More like F Minus to, what is it now, 2.6 trillion?

JamesLee on July 26, 2010 at 12:26 PM

No fecal material, Sherlock.

Dr.Cwac.Cwac on July 26, 2010 at 12:27 PM

But he created 3 million jobs…

right2bright on July 26, 2010 at 12:23 PM

right2bright: And,plugged the hole,crap,I mean well!!:)

canopfor on July 26, 2010 at 12:28 PM

I will feel better about lessons learned after November.

Cindy Munford on July 26, 2010 at 12:28 PM

The $64,000 question though is, have the taxpaying voters figured it out yet?

txmomof6 on July 26, 2010 at 12:22 PM

ding ding ding

cmsinaz on July 26, 2010 at 12:28 PM

We have replace the “failed policies of the last 8 years” with “failed policies of 34 years ago”.

J_Crater on July 26, 2010 at 12:26 PM

FIFY

Dr.Cwac.Cwac on July 26, 2010 at 12:28 PM

Everything Obama and his minions touch turns to fail.

cynccook on July 26, 2010 at 12:29 PM

The economy will recover once we all start going out and buying accessories for our unicorns.

rbj on July 26, 2010 at 12:29 PM

Look no further than the numbers in the White House’s own budget review for the unhappy lab results

the mad scientist-in-chief…his hypothesis failed

cmsinaz on July 26, 2010 at 12:29 PM

F minus to a trillion!!!

canopfor on July 26, 2010 at 12:25 PM
===================
More like F Minus to, what is it now, 2.6 trillion?

JamesLee on July 26, 2010 at 12:26 PM

JamesLee: Oh good point,the deficit!!:)

canopfor on July 26, 2010 at 12:29 PM

according to them, it’s still bush’s fault, no matter what we say…

cmsinaz on July 26, 2010 at 12:30 PM

The $64,000 question though is, have the taxpaying voters figured it out yet?

txmomof6 on July 26, 2010 at 12:22 PM

No, because half of the citizens are “zero liability” voters aka “tax takers”. It’s all good for them as long as they keep gettin’ from Obama’s “stash”.

Dr.Cwac.Cwac on July 26, 2010 at 12:30 PM

The $64,000 question though is, have the taxpaying voters figured it out yet?

txmomof6 on July 26, 2010 at 12:22 PM

Of course they have. It’s the other voters we have to worry about.

PackerBronco on July 26, 2010 at 12:31 PM

If they’re finally admitting it’s bad….then it’s REAL bad.

BigWyo on July 26, 2010 at 12:31 PM

the mad scientist-in-chief…his hypothesis failed

cmsinaz on July 26, 2010 at 12:29 PM

Nope. He proved the null hypothesis to be true. ;)

Dr.Cwac.Cwac on July 26, 2010 at 12:31 PM

No fecal material, Sherlock.

Dr.Cwac.Cwac on July 26, 2010 at 12:27 PM

Dr.Cwac.Cwac:Haha,love your word creativity!!!!!!:)

canopfor on July 26, 2010 at 12:32 PM

I’m really surprised at this. Higher taxes, more costly burdensome regulation on business, government takeovers, public sector unions raping the tax payer of the little free cash they have … I mean, I really thought the economy was all set to go gang busters.

darwin on July 26, 2010 at 12:32 PM

Isn’t is great trying to stay afloat in an economy that an ignorant man-child is treating like his personal high school science experiment?

Cicero43 on July 26, 2010 at 12:32 PM

Dr.Cwac.Cwac on July 26, 2010 at 12:31 PM

:) heh

cmsinaz on July 26, 2010 at 12:33 PM

ding ding ding

cmsinaz on July 26, 2010 at 12:28 PM

Then the followup is, are there enough of them anymore to matter in 2010 or 2012?

txmomof6 on July 26, 2010 at 12:34 PM

I will feel better about lessons learned after November.

Cindy Munford on July 26, 2010 at 12:28 PM

Cindy Munford: Gonna be painting the town,er America,
red,in November!!!!!!:)

canopfor on July 26, 2010 at 12:34 PM

To be fair, the results of Recovery Summer are not yet in. I anticipate a reversal of our financial problems, a lowering the the ocean levels, and a healing of the planet,..by September at the latest.

a capella on July 26, 2010 at 12:35 PM

So… when do the obama-nites figure out that we are about in a depression? Anyone.. Obama.. Bueller?

upinak on July 26, 2010 at 12:35 PM

The $64,000 question though is, have the taxpaying voters figured it out yet?

txmomof6 on July 26, 2010 at 12:22 PM

The problem is that most voters don’t pay tax. This is where democracy becomes a bug and not a feature. When the majority of those who have a say, actually pay no income tax, then guess what they support? This is not the democracy that the founding fathers created. They knew better than to go there. One of the requirements for voting was that you had to be a landowner – which meant you were a tax payer. That kept government small.

Over time, all of those restrictions on voting were removed. This is how progressives became powerful and why the New Deal arrived. Now it was not just the givers that had a say, it was now the takers as well. And the more takers there are, the more socialist we go.

keep the change on July 26, 2010 at 12:35 PM

It is almost as if the Obama Administration wants the economy to tank, and soon. Imagine the possibilities. Millions and millions more Americans totally dependent on the US Government for everything from food to gasoline, to the jobs they may hold, and housing. This has got to be part of the Plan. It can’t be accidental. I mean, nobody can be this stupid in their grasp of simple economics.

coldwarrior on July 26, 2010 at 12:36 PM

txmomof6 on July 26, 2010 at 12:34 PM

indeed

cmsinaz on July 26, 2010 at 12:37 PM

This administration is incapable of doing anything correctly. What a bunch of clowns.

tommer74 on July 26, 2010 at 12:37 PM

keep the change on July 26, 2010 at 12:35 PM

Which is why “the American Dream” has always been such a powerful Antidote. Problem is it is not celebrated anymore in school or elsewhere.

txmomof6 on July 26, 2010 at 12:38 PM

blame the UNION controlled Public Education (or lack thereof) system…..we are turning out folks day in and day out who know rap lyrics, what Lindsay Lohan wore yesterday and what happened on Jersey Shore last night but don’t know what this Country is about….when tools like that are afforded the opportunity to vote, this is what happens….

Hope and Change…..

SDarchitect on July 26, 2010 at 12:38 PM

The White House predicts revenues will rise sharply after that, as it also assumes the economy will grow by more than 4% in each of 2012, 2013 and 2014. The last time the economy grew that rapidly for that long, however, was from 1997-2000 and from 1983-1985. In both of those cases, taxes were falling. The Obama White House plans a huge tax increase next year, followed by the ObamaCare tax hikes that hit in 2013, and that’s before whatever else the President’s deficit commission recommends.

Could somebody PLEASE teach Obama about the First Rule of Holes? We’re ALL in this hole!!!

Steve Z on July 26, 2010 at 12:38 PM

“Tax revenues are smaller, spending is greater, and the deficits are thus larger than the White House has been saying…”
I blame whitey…

Seven Percent Solution on July 26, 2010 at 12:26 PM

Seven Percent Solution:Speaking of,ahem,have you seen this,
========================================================

Sherrod: “We Must Stop The White Man And His Uncle Toms …”
(Video)

http://www.riehlworldview.com/carnivorous_conservative/2010/07/sherrod-we-must-stop-the-white-man-and-his-uncle-toms-.html

canopfor on July 26, 2010 at 12:38 PM

Steve Z on July 26, 2010 at 12:38 PM

the only hole he knows is on the golf course…

cmsinaz on July 26, 2010 at 12:39 PM

canopfor on July 26, 2010 at 12:38 PM

nice

*sigh*

cmsinaz on July 26, 2010 at 12:40 PM

Shovel ready statistics.

seven on July 26, 2010 at 12:40 PM

PROTIP: central planning never works.

lorien1973 on July 26, 2010 at 12:41 PM

canopfor on July 26, 2010 at 12:38 PM

It’s on youtube, also. I sent it to Rush and Beck and HA tips.

kingsjester on July 26, 2010 at 12:44 PM

They could have just listend to FDR’s Treasury Secretary Henry Morgenthau Jr. and save ourselves a lot of money:

We have tried spending money. We are spending more than we have ever spent before and it does not work.”

WashJeff on July 26, 2010 at 12:46 PM

Obie and his merry gang of thieves strikes again!

30 pcs of silver on July 26, 2010 at 12:47 PM

Let’s be fair. F-…

Fuzzlenutter on July 26, 2010 at 12:47 PM

They could have just listend to FDR’s Treasury Secretary Henry Morgenthau Jr. and save ourselves a lot of money:

“We have tried spending money. We are spending more than we have ever spent before and it does not work.”

WashJeff on July 26, 2010 at 12:46 PM

This was definitely discussed in the debate before passage of the stimulus. It had no effect. Dear Leader’s poll numbers were too high and people were willing to give him a chance.

txmomof6 on July 26, 2010 at 12:50 PM

Related: Why Businesses Aren’t Hiring (click image to enlarge)

Mervis Winter on July 26, 2010 at 12:50 PM

The semi-annual review shows that the Obama administration still hasn’t learned its lesson.

A teachable moment???? gets longer……?

ted c on July 26, 2010 at 12:50 PM

Everyone on our side seems to be afraid of some “miraculous” upswing in the economy, and that such a swing will be attributed to Obama.

I can say this with certainty, that although the economy is cyclical – IT WILL NOT BE for as long as Socialistic economic policies are placed into effect by this administration.

The economy will get WORSE – the more tinkering he does with it.

The economy is going to be CRAP in 2012 – and Democrats will have to abandon Obama as a candidate – or run him with the knowledge they have no chance to win.

I’m hoping the latter.

HondaV65 on July 26, 2010 at 12:51 PM

Let’s be fair. F-…

Fuzzlenutter on July 26, 2010 at 12:47 PM

Frankly, I don’t know how you can give someone a grade who never bothered to register for the class in the first place.

txmomof6 on July 26, 2010 at 12:52 PM

This is an F-ing big deal.

jbh45 on July 26, 2010 at 12:52 PM

canopfor on July 26, 2010 at 12:38 PM

It’s on youtube, also. I sent it to Rush and Beck and HA tips.

kingsjester on July 26, 2010 at 12:44 PM

kingsjester:Excellent,I got it from Baxter Greene,and I
posted on,

http://iowntheworld.com/blog/

and a great site on the border situation,

http://oneoldvet.com/

with,as the source!!!!!!!!:)

http://www.riehlworldview.com/carnivorous_conservative/2010/07/sherrod-we-must-stop-the-white-man-and-his-uncle-toms-.html

canopfor on July 26, 2010 at 12:55 PM

In the Carboniferous Epoch we were promised abundance for all,
By robbing selected Peter to pay for collective Paul;
But, though we had plenty of money, there was nothing our money could buy,
And the Gods of the Copybook Headings said: “If you don’t work you die.”

Then the Gods of the Market tumbled, and their smooth-tongued wizards withdrew
And the hearts of the meanest were humbled and began to believe it was true
That All is not Gold that Glitters, and Two and Two make Four
And the Gods of the Copybook Headings limped up to explain it once more.

ZenDraken on July 26, 2010 at 12:57 PM

canopfor on July 26, 2010 at 12:38 PM
=================
nice

*sigh*

cmsinaz on July 26, 2010 at 12:40 PM

cmsinaz: Ahem,All in the Family!!:)

canopfor on July 26, 2010 at 12:59 PM

No, because half of the citizens are “zero liability” voters aka “tax takers”. It’s all good for them as long as they keep gettin’ from Obama’s “stash”.

Dr.Cwac.Cwac on July 26, 2010 at 12:30 PM

And what happens if the mean ole Republicans get in there and force a reduction in how much the tax takers get from Obama’s “stash”.

We’ll get the rise of Obama’s civilian army.

BowHuntingTexas on July 26, 2010 at 1:05 PM

canopfor on July 26, 2010 at 12:38 PM

Wow.

barnone on July 26, 2010 at 1:08 PM

But what about the rainbows and unicorns????? Maybe the unicorns are broke and unemployed too. The rainbows are so tapped out that they had to sell off all their colors.

search4truth on July 26, 2010 at 1:09 PM

The last time the economy grew that rapidly for that long, however, was from 1997-2000 and from 1983-1985. In both of those cases, taxes were falling.

I know Regan lowered taxes in 83-85 time frame, but didn’t Clinton raise taxes during his term?

bbordwell on July 26, 2010 at 1:09 PM

The semi-annual review shows that the Obama administration still hasn’t learned its lesson.

The Obama administration doesn’t think it needs to learn anything. They think it’s America that needs to learn a lesson from them.

Socratease on July 26, 2010 at 1:13 PM

Obama is ignorant when it comes to economics. If his administation had just a little common sense, we would all be better off. Those ivory tower eggheads are totally stupified with the current circunstances, and are too bone headed to look back and follow the bouncing ball on what has worked in the past.

Pathetic.

saiga on July 26, 2010 at 1:17 PM

It is almost as if the Obama Administration wants the economy to tank, and soon. Imagine the possibilities. Millions and millions more Americans totally dependent on the US Government for everything from food to gasoline, to the jobs they may hold, and housing. This has got to be is part of the Plan. It can’t be isn’t accidental. I mean, nobody can be is this stupid in their grasp of simple economics.

coldwarrior on July 26, 2010 at 12:36 PM

FIFY

fossten on July 26, 2010 at 1:19 PM

They dont care that their policies have failed….they knew they would…..its about ideology and “fairness”.

The masterminds behind Obama have plans to destroy the economy and blame capitalism because they think it will open the door for the total transformation to socialism for America and everlasting power for them….

Dont get fooled into thinking failure will change their policies….

alecj on July 26, 2010 at 1:20 PM

I know Regan lowered taxes in 83-85 time frame, but didn’t Clinton raise taxes during his term?

bbordwell on July 26, 2010 at 1:09 PM

Reagan had a new Congress in 1994 which cut spending and also instituted the Roth IRA into which tons of money was converted, generating a lot of tax revenue.

fossten on July 26, 2010 at 1:21 PM

fossten on July 26, 2010 at 1:21 PM

OOPS that should be Clinton

fossten on July 26, 2010 at 1:22 PM

Barack Obama still hasn’t learned that, but the voters have begun to figure it out.

The Emir obviously has, otherwise, why release this news on Friday night?

In other news, I’ve actually looked at the transcripts of this particular “class”, and Emir 0Bama’s grade was, in reality, a Z-…..

dmh0667 on July 26, 2010 at 1:27 PM

fossten on July 26, 2010 at 1:21 PM

Thanks for clearing that up. Yep, and that was a Republican Congress… thank you.

bbordwell on July 26, 2010 at 1:28 PM

Everything Obama and his minions touch turns to fail.

cynccook on July 26, 2010 at 12:29 PM

Everything Obama and his minions touch turns to fail fecal matter.

FIFY!

belad on July 26, 2010 at 1:29 PM

Ed,

I would like the Nobel Committee to announce that Paul Krugman’s prize was in fact something he found in a box of Cracker Jack.

belad on July 26, 2010 at 1:34 PM

cmsinaz on July 26, 2010 at 12:29 PM

Can you find some other term to use for him? I don’t want to be compared to him in any way.
There, now I need a shower.

Mad Scientist

mad scientist on July 26, 2010 at 1:41 PM

Barack Obama still hasn’t learned that, but the voters have begun to figure it out.

Don’t want to burst your bubble Ed, but no. The voters haven’t figured it out.

They don’t have the slightest idea, all they know is they don’t like how things are going and want a change. The vast majority have no clue as to why things are going badly though.

There will always be another socialist waiting in the wings to declare that they know the successful way to implement it next time.

ButterflyDragon on July 26, 2010 at 1:43 PM

“Barack Obama still hasn’t learned that, but the voters have begun to figure it out.”

Umm, Mr. Morrissey, Barack Obama learned that a long time ago, he just doesn’t care.

http://sayanythingblog.com/entry/obama_on_capital_gains_tax_lets_tax_the_rich_because_they_make_too_much/

It’s all about “fairness,” i.e. corruption and accumulation of power in his hands, while destroying America.

ebrown2 on July 26, 2010 at 2:24 PM

It’s akin to having a money-losing product but trying to convince the bank that you can make up the losses in volume sales.

C’mon down to Crazy Baracky’s folks! We gotcher stimuli; we gotcher bailouts! We gotcher out-and-out takeovers of private enterprises!

Our crazy sales staff can put you into any sort of failed economic policy you desire! Ask for Hangdog Harry for certification that your state’s workforce is illegal immigrant-free! Laugh your asses off as Nuttier-than-a-Decade-old-Fruitcake Nanzi ‘splains how unemployment benefits are the best stimulus … evah! Marvel at the antics of Chris “Call Me Chris, Angelo” Dodd and Bawney “Call Me Anytime, Boys” Frank as they execute their legendary “waitress sandwich” reforms on the financial sector! Prepare to be regaled as our VP, “Crazy Joe” BiteMe, uses both his fingers AND his toes to tally the number of jobs “created or saved” by the Porkulus! Don’t forget to visit our tax advice booth where Chuckles Rangel and Timmuh(!) Geitner provide free (free!) advice about how easy it is to escape paying those pesky li’l things to which only little people should be subjected! And leading the entire three-ring circus of economic extravaganzas, Crazy Baracky his own bad self! Crazy Baracky, whose motto is, “It’s in my own two hands, I think it’s my ass, but could you spot me two tries out of three?”

ya2daup on July 26, 2010 at 2:43 PM

The problem here is, obviously, racism.

It’s a racist economy. If only the economy weren’t racist then there would be no trouble at all powering it on rainbows and unicorn farts. But because our economy is, at its core, racist…well, it just won’t work.

But fear not. President Toonces and AG Iron Fist are working harder than any president and AG in our country’s history to destroy all vestiges of racism in our economy. The AG has his steel-toed boot firmly planted on this racist economy’s throat and will keep it there until all that nasty racism is choked out of it.

President Toonces has gone golfing (’cause it’s the only place where he can get any relief from all that racism goin’ on) and will find out how things are proceeding at some later date.

trapeze on July 26, 2010 at 2:48 PM

“The semi-annual review shows that the Obama administration still hasn’t learned its lesson.”

No Ed. YOU haven’t learned your lesson.

The Obama administration is accomplishing exactly what it intends to accomplish. The middle class is being squeezed into oblivion, which will leave the Ruling Class and the Serfs.

By continuining to discuss the matter as if the criminals just won’t learn, YOU are contributing massively to the problem, because YOU have a huge megaphone in HotAir, a megaphone you are turning into a RINO flute.

notagool on July 26, 2010 at 2:49 PM

Mad Scientist

mad scientist on July 26, 2010 at 1:41 PM

you got it….how about lab rat-in-chief?

cmsinaz on July 26, 2010 at 3:01 PM

The First Lardass is going to Spain.
Renting 30 rooms in a 5 star hotel.
You peasants just don’t know how to live.

¡Olé!

justltl on July 26, 2010 at 3:02 PM

Who put the D in dumb? DEMOCRATS!!!

capejasmine on July 26, 2010 at 7:40 PM

You cannot multiply wealth by dividing it. -Dr. Adrian Rodgers

Mr_Magoo on July 26, 2010 at 9:08 PM

Too bad that Barry has only one play in his play book.

The White House should be re-named “FantasyLand”.

GarandFan on July 26, 2010 at 10:11 PM