The Failure of Obamanomics and the Financial Crisis

Well, here is a term that I just heard. Maybe it’s been circulating around but I haven’t

Obama and Bush meet in White House 2008

heard it until now, Obamanomics. An editorial in really underscores the failure of Obama’s economic plan, if you can call it a plan.  How is it that all the candidates, on both sides, are going to “revive” the economy by letting the private sector handle everything?  Aren’t they the ones who got us into the financial crisis in the first place?

Having been put into power by Wall Street, Obama has done their bidding to the letter, and the facts pointed out by this article makes it hard to dispute his failure to do what he promised in his campaigning, to fix everything that Bush broke. The name, Obamanomics should stick and be associated with economic failure and betrayal to the American people.

I think that’s the not said but implied message, betrayal of the American people. In fact, one of the first things Obama did after getting into office was to bail out the Wall Street banks, just like Bush did. Only Obama went for 800 billion while Bush only did 700 billion. So, Obama out-Bushed Bush! The American people, and most of the states are still waiting for a bailout that will most likely never come, at least not from the Obama Administration.

The article cites the case of Darin Wedel, who, at the request of the President Obama, sent his resume to the White house but is still unemployed after two months. Darin Wedel is an electronics engineer but has been out of work for a while. He sent his resume in response to an internet forum where the President stated that we don’t have enough home-grown engineers to fill the positions. Wedel’s wife stated that the recruiters aren’t even calling him for any jobs anymore, meaning there aren’t any positions available in this country. It was an outright lie by the President.

It also states that over 100 million Americans over age 16 don’t have jobs, and since 2000 that’s up 34%. And the official government figure of 8.2% is way off because they are not counting the people who have simply given up looking for work out of discouragement or other factors. So, the number is really much higher.

The Gallop pole includes people who are working part time, that is, underemployed, but want to work full time and the figure is 18%. So, now we are getting close to the Great Depression figure of about 23% unemployment.

Read the original editorial here.

And, I’ll further point out the failure of Obama’s economic policy, or Obamanomics. His recent plan to balance the budget first, then he can start creating jobs is a lesson in failure for two major reasons: first, that says that Wall Street gets paid first at the expense of Main Street and second, the budget will never get balanced. You can’t cut that much out of the budget without totally collaping the economy. Everytime you cut the budget, you put more people out of work, they lose health care and basic services. The whole system will shut down and we will be like Greece with riots in the streets.

It all goes back to what I’ve said many times in this blog that we need to return to an American System policy, based on FDR, JFK and Lincoln, among others, to rebuild the industrial base of the economy. That means going against Wall Street politically. They are running the economic and financial show at this point. But they should be viewed as parasites on an economy, not as economic experts deciding the future of Main Street America.

Having Wall Steet run our economy is like the fox guarding the hen house.

What do you think of Obama’s broken promises?

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2 Responses to The Failure of Obamanomics and the Financial Crisis

  1. Bill says:

    First off, Obama the candidate promised to balance the budget, but that was simply another poll driven lie, i.e. Obama was telling the public what the polls said they wanted to hear. His first 4 years prove he has no intention of balancing the budget. Secondly, nearly everything Obama says is, if not entirely untrue, untrue to a significant degree. He lies without compunction.
    Its not just his promise to balance the budget.

    His promises to create jobs also have not been kept. The history of American recessions (since the Great Depression) shows that recovery comes in an average of 10 months. It has been 54 months now, and recovery is not in sight. I believe Obama doesn’t truly want America to recover. He only wants enough of a recovery in the next 4 months to convince enough voters to re-elect him as President.
    He banned American companies from drilling in the Gulf of Mexico; but he has allowed other countries, such as Brazil, China, and others to drill in those same American controlled waters. Why? The history of American oil companies regarding safety is higher than anyone else, yet Obama went against the court and banned US companies.
    In fact, looking at policies which are proven to 1- stimulate recovery from recession, 2-stimulate economic growth, 3- stimulate job creation, and 4-strengthen the dollar, we see Obama is against all of them.
    He opposes business relief from regulation, he opposes lowering marginal tax rates, and he opposes strong monetary policy. The first two policies would increase tax revenues (history shows this to be true every time there is lowering of marginal tax rates), spur business investments which create jobs, and induces a strong recovery. And strong monetary policy strengthens the dollar, and helps prevent boom and bust cycles.
    Obama clearly is a lifelong marxist who seeks to fundamentally change America into a marxist style government run country. This will destroy our rights and freedoms, and will prevent everyone except the politically connected from becoming wealthy, hard work or not.

    • Tony says:

      I agree with the first part of your comment, Bill. Obama is a liar, he betrayed the American people and is an overall disaster. He was put into power by the Wall Street crowd. In fact, a good case can be made that there was foreign intervention into our electoral process to stop Hillary and put Obama in office, particularly by the mega-speculator George Soros. Soros gave lots of money to Obama and introduced Obama to all the big financial power brokers in New York, and was a major player in getting the Obama campaign going.

      As for the monetary policy, I oppose it. The U.S. was founded on a credit system, which is completely different than a monetary system. A system of public credit brings control of finances back under the U.S. government again, instead of private bankers. I just did a post which talks about the credit system, you can check it out here. There is even a document to download. Now, if only we can get the U.S. government back under the control of the American people, instead of Wall Street, then we could see unprecedented prosperity.

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