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Tuesday, October 17, 2017

You Never Want A Serious Crises To Go To Waste

by Amo (writer), New York, February 16, 2009

Those were the “telling” words of President Obama’s, Chief- of-Staff, and former Congressman Rahm Emanuel.

“Telling” in that, it gives us an insight in to how this crisis is currently being manipulated by this administration.  Emanuel went on to say; “what I mean by that, it's an opportunity to do things that you think you could not do before.  This is an opportunity”.

What’s insightful is that this appeared to be an off-the-cuff remark given in Washington, DC, several weeks ago at the Wall Street Journal's CEO council.

He continued; “what used to be long-term problems, be in the health care area, energy area, education area, fiscal area, tax area, regulatory reform area, things that we had postponed for too long that were long-term are now immediate and must be dealt with.  And this crisis provides the opportunity for us, as I would say; the opportunity to do things that you could not do before”.

 

No one suggests that these aren’t worthwhile issues that need to be addressed, however to use the current economic crises to push through a massive social agenda when our economy can ill afford it, suggests to me that this president is willing to roll the dice at our expense.  His recent town-hall meetings in economically depressed areas of the country, and his dooms day scenario played well with the mainstream media, in pushing through this 1,175 page, trillion dollar massive spending package, which no one in congress as actually had the time to read, suggests to me that this democratically controlled congress along with this president, do not want the details of this massive bill exposed, before its signed into law.

Imagine, if you can putting your signature on a 1,175 page legal document without taking the time to read the details, its shameful and wrong, and we once again see  how we got into this crises, in the first place. With no accountability and with no oversight from our elected officials…it’s disgraceful.

Obviously, if this administration had wanted to immediately stimulate the economy rather then push through a social agenda, they would have used the economic principles that Presidents John F. Kennedy and Ronald Reagan used at the height of their own respective recessions,  that have proved time and again to have been successful. They reduced the corporate tax rates, they suspended or reduced the payroll tax, and tried to eliminate (a tall order to be sure), wasteful government spending and pork barrel entitlements, as part of their “stimulus package”, none of which has been incorporated by this administration.

That’s not to suggest that we should not infuse dollars into the troubled banking and financial industries, however accountability as to “how” and “why” this crises began should have been foremost with any “stimulus package” proposed, and sadly it’s not.    

What’s truly ironic is that while this massive spending bill does little to actually stimulate the economy, the payments due to future generations in the next 15 to 20 years will be staggering. “Ironic”, in that the current crop of young college educated voters, who made up a sizeable voting block for President Obama, will be the middle-aged wage earners and will eventually be the ones paying for this massive spending bill.



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Amo is a writer for BrooWaha. For more information, visit the writer's website.
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4 comments on You Never Want A Serious Crises To Go To Waste

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By Amo on February 18, 2009 at 08:55 am

Good morning HurricaneDean;

Thank you for your response, and for the those statistics, quite impressive, however the one thing about statistics and government policy is that they usually are at odds with one another and numbers alone don’t reflect the actual economic conditions. Perception and good faith is a much better indicator on how business functions. Rather then get into a debate; we (you and I), simply have a philosophical difference…however that being said, history is on my side, when it comes to improving the current economic crises.

Below are excerpts from an article by;

Peter Ferrara

Peter Ferrara is director of budget and entitlement policy at the Institute for Policy Innovation and general counsel for the American Civil Rights Union. He formerly served in President Reagan's White House Office of Policy Development, and as Associate Deputy Attorney General of the United States under the first President Bush. He is a graduate of Harvard College and Harvard Law School.

Regards,

Amo

What Works

We know how to get the economy booming again. The fundamental, practical principles of economics have worked over and over again, wherever they have been tried, throughout human history. Reagan's economic recovery program was based on these principles, with 4 concrete components reiterated over and over again throughout his campaign, and implemented after he was elected.

Those components were (1) across the board reductions in tax rates to provide incentives for saving, investment, starting and expanding businesses, job creation, entrepreneurship, and work, (2) removing the costs of unnecessary regulation, which today would especially mean removing the onerous restrictions on energy production, allowing drilling offshore and onshore for oil and natural gas, and revival of the nuclear power industry, (3) controlling government spending, which contrary to longstanding liberal propaganda Reagan did do, as explained in my article in the November 2008 American Spectator, "When the Republicans Cut Spending," and (4) sound anti-inflation monetary policy.

We know such policies work because they turned around in just two years an economy far worse than today's, suffering from multi-year double-digit inflation, double-digit unemployment, and double-digit interest rates, declining incomes, and rising poverty. What we suffer with today is not the worst economy since the Great Depression, but The Worst Economy Since Jimmy Carter, which was the last time Obama's ultraliberals were dominant, politically and intellectually.

Indeed, these Reagan policies not only ended the disastrous stagflation of the 1970s, but created what economists Art Laffer and Steve Moore have rightly noted was the 25-year economic boom, from 1982 to 2007, the greatest period of wealth creation in the history of the planet. This was recounted in detail in my October 8 column, "Prepare for the Worst." So, yes, we do know how to create an economic boom. But notice how the Obama/liberal Democrat stimulus package so carefully avoids all of the above components of the successful Reagan economic recovery package. That is for ideological reasons, not practical reasons.

Let's Try What Never Worked Instead

The much ballyhooed Obama stimulus "tax cuts" avoid entirely any reductions in tax rates at all, because Obama considers such rate reductions ideologically immoral. The centerpiece of the proposal is the $500 per worker tax credit, which is another tax rebate giveaway just like the supposed $164 billion stimulus package that Bush and the Democrats agreed on and adopted at the beginning of last year. We all know now how well that worked. Why are we doing the exact same thing now one year later? Where the heck is the change? As discussed in detail in my column last week, this and the rest of the Obama supposed tax cut package will not stimulate anything, because it does not involve any change in the fundamental incentives that govern the economy, and just borrowing $150 billion from the private economy to cover for the $150 billion revenue loss from Obama's brain-dead tax credit will not add anything to the economy on net.

On regulation, Reagan specifically campaigned in 1980 on unleashing the private sector to produce more energy supplies to counter the energy crisis of his day. He did so soon after entering office, and the price of oil and natural gas plunged and remained low for over 25 years. If we did the same today, if we removed needless regulatory barriers to increased oil and gas and nuclear energy production, we would enjoy booming energy industries that contributed mightily to the economy. We would also boost the entire economy, but particularly manufacturing, with low cost, reliable supplies of energy

Peter Ferrara

Peter Ferrara is director of budget and entitlement policy at the Institute for Policy Innovation and general counsel for the American Civil Rights Union. He formerly served in President Reagan's White House Office of Policy Development, and as Associate Deputy Attorney General of the United States under the first President Bush. He is a graduate of Harvard College and Harvard Law School.

 

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By Amo on February 18, 2009 at 07:00 pm

Good evening HurricaneDean,

Always a pleasure hearing from you, thanks for the response, and your insight. I believe however, that in 1982 the unemployment rate peaked to 10.8% and averaged 9.7% for that year. Over the next seven years (under Reagan), unemployment dropped to 5.3%.

Regards,

Amo

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By Amo on February 19, 2009 at 08:21 am

Guys,

We can go back and forth on this, all day, and I choose not too. During the Carter Administration inflation I believe hit 21% today I believe its less then 2%. Add that number to the current unemployment rate and you have what President JFK’s economist coined “The Misery Index”.

My point is simply this; we can take snippets of information, numbers, whatever and make our points, depending where we are in terms of ideology. If you believe that big government and “nationalizing” private industries and bailing out corrupt and bad business practices with monies we don’t have then President Obama is your man.

However, if you believe in accountability with all concerned, combined with putting a real stimulus package together, without throwing billions and billions of tax payer money for social engineering and pork barrel enlightenments then you believe as I do…it’s that simple.

Regards,

Amo

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By Amo on February 19, 2009 at 09:41 am

It’s a matter of degree, and you’re correct President Bush is responsible for starting this ridicules slide into “nationalization” of private industries. Simply take a look at what’s happening across our nation, California is a prime example of a society that’s out of control. The state is about 50 billion dollars in the red, they are  now handing out IOU’s to tax paying citizens, who overpaid their tax liability, while the state’s infrastructure is falling apart due to bad management and an  illegal alien crises that is dissipating the states social services. Compound that to other states that are now looking for a bailout, and you have a society on the brink of collapse.

Amo     

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