President Obama addressed the economic crisis this morning:
The economic crisis we face is unlike any we’ve seen in our lifetime. It’s a crisis of falling confidence and rising debt.
If it’s a crisis of “rising debt” then how will you solve it by adding an additional Trillion Dollars in debt?
A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future. Millions more jobs will be lost. More businesses will be shuttered. More dreams will be deferred.
When the President says “act” he means Congress must pass the largest single borrow-and-spend bill in American History, mostly an assortment of ineffective social engineering schemes long favored by liberals. Since this didn’t have to happen, and since it was caused by government intervention, it’s already a catastrophe.
More from Obama’s remarks:
That’s why I feel such a sense of urgency about the Economic Recovery and Reinvestment Plan that is before Congress today. With it, we can save or create more than three million jobs, doing things that will strengthen our country for generations to come.
But this so-called “plan” is still evolving in the Senate, and then, if it passes the Senate, it must be reconciled with the House version through a the usual erratic process of political horse trading. How can the President possibly know how many – if any – private sector jobs will be “saved or created” when he doesn’t yet know what the final bill will include?
Of course, no matter how high unemployment soars after the bill passes, Obama and the Democrats, with vigorous support from the establishment media, will claim the toll would have been even greater had their massive borrowing and spending had not “saved” millions of jobs.
And by the way…Won’t the “generations to come” be a bit resentful that our generation borrowed an extra Trillion Dollars for them to pay off?
Now, in the past few days I’ve heard criticisms of this plan that echo the very same failed theories that helped lead us into this crisis – the notion that tax cuts alone will solve all our problems…
Tax cuts did not cause the credit bubble and reckless mortgage lending that led to this crisis. The notion that none of this would be happening had we paid higher taxes is absurd. And, nobody claims that tax cuts alone can solve all of America’s problems.
Nor is there any reason to believe this giant spending binge will solve even some of America’s problems. It will simply divert resources that would otherwise fund private sector investment, innovation and job creation to the same discredited schemes Democrats have promoted for eighty years. The record of these failed programs – the 45 year War on Poverty has already cost more than $4 Trillion and poverty is still winning - demonstrate that government has a very poor track record when it comes to solving problems.
I reject that theory, and so did the American people when they went to the polls in November and voted resoundingly for change.
Obama’s campaign speeches always criticized President Bush and the Republicans for running deficts for seven years. How many of those voters expected that electing Obama would cause a deficit in 2009 that exceeded the total of all seven Bush deficits?
Be assured, if so-called “stimulus” borrowing, diverting resources from the private sector to the government sector, had ever increased employment, profits, retirement savings, household income or wealth Obama and the Democrats in Congress would stampede to the cameras to tell us exactly when and by how much. In reality, there are no examples of past successes that would lead to the conclusion that the government can improve economic conditions or increase employment by borrowing and spending an extra Trillion Dollars.