Posted by: reformedmusings | March 6, 2009

The Fruit of Obama’s Socialism

We’ve all seen the news. Hey, we’re living it. The Dow has dropped over 25% since the inauguration. Obamessiah tried to blame his predecessor, but it’s clear now that his rampant government spending-both real and promised-and unprecedented level of national debt are killing the economy. He promised change, and we’re getting it alright. All that’s left of our national wealth is the change in our pockets.

The Wall Street Journal has been chronicling the socialist fiasco. In The Obama Economy,  they observe that:

As 2009 opened, three weeks before Barack Obama took office, the Dow Jones Industrial Average closed at 9034 on January 2, its highest level since the autumn panic. Yesterday the Dow fell another 4.24% to 6763, for an overall decline of 25% in two months and to its lowest level since 1997. The dismaying message here is that President Obama’s policies have become part of the economy’s problem.

Remember that before the election, the Dow was around 9600, but it dropped almost 500 points the day after the election. The doubts about Obama’s socialistic policies were already coming home to roost. Of course, the left blamed former President Bush. The day Obama took the oath of office, the Dow dropped 332 points-4% in just one day. More Bush blame followed. At first glance, one could almost call that plausible. So, we were told that we needed the government to save us, so the democrats passed an almost 1 trillion dollar pork and ACORN left-wing payoff they called a stimulus. The Dow plunged another 382 points, or 4.6%. Coincidence? The House passes the first $410 billion, pork-laden step in Obama’s $3.6 trillion budget plan that declared war on the wealth producers in the country, and the Dow tanks again. The Journal:

The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they’re no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.

The market continues to free fall. It’s now dropped over 25% since the inauguration. Can Obamessiah blame his predecessor? The Journal doesn’t think so:

So what has happened in the last two months? The economy has received no great new outside shock. Exchange rates and other prices have been stable, and there are no security crises of note. The reality of a sharp recession has been known and built into stock prices since last year’s fourth quarter.

What is new is the unveiling of Mr. Obama’s agenda and his approach to governance. Every new President has a finite stock of capital — financial and political — to deploy, and amid recession Mr. Obama has more than most. But one negative revelation has been the way he has chosen to spend his scarce resources on income transfers rather than growth promotion. Most of his “stimulus” spending was devoted to social programs, rather than public works, and nearly all of the tax cuts were devoted to income maintenance rather than to improving incentives to work or invest.

And Michael Boskin also lays the responsibility where it belongs. In Obama’s Radicalism is Killing the Dow, Boskin describes the socialist disaster in the making:

Mr. Obama’s $3.6 trillion budget blueprint, by his own admission, redefines the role of government in our economy and society. The budget more than doubles the national debt held by the public, adding more to the debt than all previous presidents — from George Washington to George W. Bush — combined. It reduces defense spending to a level not sustained since the dangerous days before World War II, while increasing nondefense spending (relative to GDP) to the highest level in U.S. history. And it would raise taxes to historically high levels (again, relative to GDP). And all of this before addressing the impending explosion in Social Security and Medicare costs.

Redefining the role of government wouldn’t be bad if it meant less government, but Obama wants the government to enslave us. But, Obamessiah does have a plan, and it has nothing to do with economic recovery. Rather, it has more to do with Chavez’ president for life plan. Boskin again:

New and expanded refundable tax credits would raise the fraction of taxpayers paying no income taxes to almost 50% from 38%. This is potentially the most pernicious feature of the president’s budget, because it would cement a permanent voting majority with no stake in controlling the cost of general government.

That’s right – Obamessiah is creating a permanent slave class loyal to his socialist policies. The problem is, those creating wealth will simple stop doing so. The US at large will become like Philadelphia, California, and New York who have been bleeding talented wealth creators as fewer and fewer people must support more and more non-producers via income redistribution. More on that angle in another post.

The left apparently cannot read history. As Boskin writes:

On the growth effects of a large expansion of government, the European social welfare states present a window on our potential future: standards of living permanently 30% lower than ours. Rounding off perceived rough edges of our economic system may well be called for, but a major, perhaps irreversible, step toward a European-style social welfare state with its concomitant long-run economic stagnation is not.

As Bloomberg points out, Obama now presides over his own bear market:

The Dow Jones Industrial Average fell 20 percent since Inauguration Day through yesterday, the fastest drop under a newly elected president in at least 90 years, according to data compiled by Bloomberg. The gauge lost 53 percent from its October 2007 record of 14,164.53, slipping 4.1 percent to 6,594.44 yesterday.

More than $1.6 trillion was erased from U.S. equities since Jan. 20 as mounting bank losses and rising unemployment convinced investors the recession is getting worse.

This blog and others warned you before the election. We looked at Obamessiah’s sparse voting record and radical socialist associations and saw what would come. None of what has come to pass since his election has surprised me. Only radicals like Bill Ayers, Ward Churchill, Nancy Pelosi, Harry Reed, and Hugo Chavez are cheering. Michelle Malkin captures the idiocy very well in The Steve Urkel-ization of the Economy – a great read.

obama-urkel(Awesome illustration from thediamondguy as seen at Michelle Malkin)

What can we add to that, except this pre-election post?

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Responses

  1. […] We’ve all seen the news. Hey, we’re living it. Read more:  The Fruit of Obama’s Socialism […]

  2. […] pretends his snake oil socialism will solve our economic ills, when in reality it’s doing exactly the opposite. That was Rand’s point in Atlas Shrugged. Socialism exactly like Obamessiah’s destroyed […]

  3. […] and yet again on Obama, Reformedmusings writes The Fruit of Obama’s Socialism. Great […]


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