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August 26, 2010

Liberal Rerun vs. Party of No – A Time for Choosing

by @ 11:00 am. Filed under Business, Economics, Politics, Taxes

Obama's Sinking Ship

We’ve seen this movie before. It’s the same old Keynesian mumbo jumbo of growing government via non-stop spending as the cure all for economic woes. I’ve said it time and again – government doesn’t create jobs, it destroys jobs. Period!

Remember that House Democrat retreat to Williamsburg, Virginia where Barack Obama was pressing for his stimulus agenda?

“This is not something that we’re just doing to grow government. We’re doing this because this is what the best minds tell us needs to be done.”

Oh really? What if those “best minds” are out of their minds, wrapped up in the blanket of false economic theory, proved wrong before?

Obama and his ilk have passed three “stimulus” bills and were promising a “summer of recovery.” Let’s examine how the record spending has worked for the American economy and worker.

  1. July sales of existing homes fell by 27% from June of this year and by 25.5% compared to July 2009. This annual sales rate of 3.83 million homes was the lowest since the National Association of Realtors (NAR) began keeping track of sales in 1999.
  2. The Commerce Department reported that July sales of new homes fell 12.4% from June and by 32.4% compared to July 2009. This annual rate of 276,000 new units sold is the lowest since 1963, when government records were first kept.
  3. Last fall after the Obama administration’s Cash for Clunkers program dried up, new automobile sales plummeted. General Motors’ sales plunged 36 percent in September 2009 compared with August. Ford plummeted 37 percent. Chrysler dove 33 percent.
  4. The destruction of traded-in cars mandated by Obama, used car prices have soared this year. Most cash-strapped Americans who are already dealing with 9.5% unemployment now are finding it harder to find an affordable car, caused by government intervention in the marketplace.

Heritage Foundation explains real economics:

The problem with both of these liberal programs is the same: there is no such thing as a free lunch. In both cases the additional government spending did not create any new demand; it only shifted the time at which American consumers were going to make a purchase they had decided to make anyway. Instead of ensuring an environment where market participants could ascertain the true prices of the goods they want to purchase, these government interventions added uncertainty into the economy by making it harder for existing businesses and entrepreneurs to plan their next move. These government interventions, paid for with borrowed dollars, did not create new wealth. They just diverted capital and resources from the other places where markets would have invested it spontaneously absent government action.

Government spending does not create economic growth it only rearranges the economic deck chairs making it more difficult for the real job creators, small business, to plan for the future.

Forty-five years earlier, then-Gov. Ronald Reagan reminded the American people:

“Anytime you and I question the schemes of the do-gooders, we’re denounced as being against their humanitarian goals. They say we’re always “against” things—we’re never “for” anything. Well, the trouble with our liberal friends is not that they’re ignorant; it’s just that they know so much that isn’t so.”

That speech was entitled, “A Time for Choosing.” When Republicans have voted no to Obama’s radical agenda the Democrats have repeatedly cried that the GOP is the party of NO.

No to the Obama agenda is a good thing and American’s are deciding it’s now a time to choose less government and more fiscal responsibility. American’s are choosing freedom and liberty over Statism, Marxism and tyranny.

Pay attention America, it’s time to choose. Indeed!

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