Via Mediaite, consider this the antidote to all of the liberal apologetics on why it’s just dandy that we went into negative numbers. The Democratic Party is now calling this GDP report the “best-looking contraction in US GDP you’ll ever see,” and no, that’s not meant to be ironic. While it’s important not to overreact to the contraction, a contraction is still bad news … at least for most Americans.
CNBC’s Rick Santelli scolds those blaming cutbacks in government spending as the reason for the poor report, and says the real issue is that we’re adopting a European model for government interventions and spending:
“When you act like Europe, you get growth rates like Europe,” Santelli said. “Our discussions with economists sound like we’re in Europe. They’re always doing the right thing. They’re always thinking they know better, and this the kind of growth.”
“We have become Europe,” Santelli declared. “We are now Europe.”
He was challenged when his co-host noted that federal spending decreased dramatically in the fourth quarter. “Why do we need to reduce spending?” Santelli asked hypothetically. “Because we run trillion dollar deficits, for crying out loud.”
The CNBC hosts joked that this negative growth rate means that the federal government will have to pursue yet another stimulus program to the tune of $800 billion. The joke became serious, however, when one host suggested that an $800 billion stimulus in the form of tax cuts may not be a bad idea.
We can consider this yet another warning signal that the Obama administration still hasn’t realized that Obamanomics hasn’t worked, and the flow of government stimulus just masks the underlying stagnation only for just as long as it continues to flow. Michael Ramirez put his Pulitzer-winning wit and talent to this point even before the GDP numbers made him look prescient:
Obamanomics is certainly Lost in Space.
Also, be sure to check out Ramirez’ terrific collection of his works: Everyone Has the Right to My Opinion, which covers the entire breadth of Ramirez’ career, and it gives fascinating look at political history. Read my review here, and watch my interviews with Ramirez here and here. And don’t forget to check out the entire Investors.com site, which has now incorporated all of the former IBD Editorials, while individual investors still exist.