Obamanomics: Recycled Campaign Hype

For several days the media  hyped “a major economic speech” to be given by President-elect Obama.  boondoggle-bucks

But when the much anticipated moment arrived,  the vague and misty content did not begin to justify the hype.  Obama opened with the same self-aggrandizing verbosity that marked his campaign speeches:

Throughout America’s history, there have been some years that simply rolled into the next without much notice or fanfare. Then there are the years that come along once in a generation – the kind that mark a clean break from a troubled past, and set a new course for our nation.  This is one of those years.

How can President-elect Obama know this will become the year of a “clean break from a troubled past?”  Perhaps he believes his own campaign hype, that convinced so many millions of naive voters, that  his majestic presence alone would bring about, in his own words, “a nation healed, a world repaired.”

Obama then listed the usual ominous statistics and tossed out some speculation as to how miserable we could become “if noting is done,” including:

  • Double digit unemployment
  • $12,000 lost income for every family of four
  • a lost generation of potential and promise
  • Four years of recession

That last one would virtually guarantee a one term Administration for a discredited President.  So he sure doesn’t want that to happen.  How does Obama know these terrible things will happen without massive government intervention?  He didn’t say.  There ‘s certainly no reason to believe this man can do what legions of economists have never been able to do, accurately predict the economic future, or accurately project the effect of government intervention on the economic future.

He went on to present an absurdly simplistic picture of who is to blame, mostly banks, Wall Street executives, and “too little regulatory scrutiny,” all resulting in:

…a devastating loss of trust and confidence in our economy, our financial markets, and our government.

He then discussed his “plan,” that he claims is not just a new policy, but “a whole new approach to meeting our most urgent challenges.”  He didn’t describe this “whole new approach,” whatever it is, nor did he admit that since it’s new it has no track record.  His plan starts with

“we will double the production of alternative energy in the next three years.”

So, why does it take government action to increase alternative energy production?  If alternative energy is such a wonderful thing, why aren’t companies stampeding into that business, competing with each other?   The answer is simple: Alternatives cost more than producing energy from nuclear, oil or coal – a lot more.  There is limited alternative energy production in America only because of government intervention to require power companies and their customers to do what they would not do voluntarily, pay $1.50 or $2.00 for $1.00 worth of energy.

Obama  plans to use the power of government to divert even more financial resources from more efficient, productive, market driven uses into  inefficient “alternative” energy.

Obama promised that massive government diversion of resources into inefficient, expensive alternative energy would:

…put Americans to work in new jobs that pay well and can’t be outsourced – jobs building solar panels and wind turbines; constructing fuel-efficient cars and buildings; and developing the new energy technologies that will lead to even more jobs, more savings, and a cleaner, safer planet in the bargain.

Obama should, and probably does know that the three decade history of government intervention to promote alternative energy  is ample evidence of how implausible these extravagant promises are.

Apparently, the rest of “the plan” will be cash grants to individuals, deceptively labeled “tax cuts,” and spending vast sums of government money on:

  • computerized record keeping systems for the health care industry;
  • repairing roads and bridges
  • a new “smart” electrical grid
  • installing more broadband lines
  • medical research
  • cash subsidies to states, “workers” and families

Finally, Obama assured us that with him as President the inept Congress who’ve spent Trillions on boondoggles and ineffective programs – alternative energy, for example – will, under his glorious leadership, set aside political motivations and suddenly become competent and adept, and thus will spend only on “what works.”  He really said that!  He said Congress will, in a matter of a few weeks, figure out how to spend a Trillion Dollars, but only on “what works!”

There is one bright spot in all this dreary news: before the 2010 election it should be obvious, to even the most naive voters, that politicians, including the magnificent Barack Obama, are simply not equipped to improve America by diverting a Trillion dollars from the private sector and hurling it at politically inspired projects and programs.  With his grand plan Obama may demonstrate the value of liberty and the clumsy incompetence of political authority more effectively than any politician since Reagan.

4 Comments so far

  1. gameManna on January 12th, 2009

    I think you are thinking like sukrat, but I think you should cover the other side of the topic in the post too…

  2. Sharon on January 13th, 2009

    what does thinking like sukrat mean?

  3. Enlargement on January 15th, 2009

    I am amazed with it. It is a good thing for my research. Thanks

  4. petrarbarapse on January 20th, 2009

    I am unable to understand this post. But well some points are useful for me.