Aug 25 2009

Obama Admits Liberal Economic Policies Are Failures

President Obama’s administration has announced (because the law demands most likely) that the liberal policies he and the libs in Congress enacted to fix the economy have failed. And fail so miserably we will be living this economic nightmare for another year – right up until the 2010 elections for Congress:

U.S. unemployment will surge to 10 percent this year and the budget deficit will be $1.5 trillion next year, both higher than previous Obama administration forecasts because of a recession that was deeper and longer than expected, White House budget chief Peter Orszag said.

The Office of Management and Budget forecasts a weaker economic recovery than it saw in May as the gross domestic product shrinks 2.8 percent this year …

That’s not the worst of it. Not only will we see record high unemployment well into next year, we will be experiencing mind-numbing deficits that rivals all the debt accumulated  by this country in over the previous 239 years it has been in existence:

The federal government faces exploding deficits and mounting debt over the next decade, White House officials predicted Tuesday in a fiscal assessment far bleaker than what the Obama administration had estimated just a few months ago.

Figures released by the White House budget office foresee a cumulative $9 trillion deficit from 2010-2019, $2 trillion more than the administration estimated in May. Moreover, the figures show the public debt doubling by 2019 and reaching three-quarters the size of the entire national economy.

The DC liberals, led by Obama, Pelosi and Reid, are destroying this country. They need to be stopped before they do any more damage. We don’t have to double the debt over the next decade – we can fire the idiots in DC and get some new representatives for We The People long before that has to happen.

What is really telling is that, if you look across the globe at other nations and their economies, all of those who did not follow the doomed Japanese liberal recession model – which gave Japan two decades of economic hell for their mistake. The ones who did were America, Britain and Italy – the latter to lesser extents. They too are not yet pulling out of the economic nose dive.

But as Mark Steyn noted the other day all the others who shunned massive deficits and pork spending (and went the way of smaller government and tax cuts) are already coming out of their recessions.

Meanwhile, in Brazil, India, China, Japan and much of Continental Europe the recession has ended. In the second quarter this year, both the French and German economies grew by 0.3 percent, while the U.S. economy shrank by 1 percent. How can that be? Unlike America, France and Germany had no government stimulus worth speaking of, the Germans declining to go the Obama route on the quaint grounds that they couldn’t afford it. They did not invest in the critical signage-in-front-of-holes-in-the-road sector. And yet their recession has gone away. Of the world’s biggest economies, only the U.S., Britain and Italy are still contracting. All three are big stimulators, though Gordon Brown and Silvio Berlusconi can’t compete with Obama’s $800 billion porkapalooza. The president has borrowed more money to spend to less effect than anybody on the planet.

You would think that it takes a royal screw up to spend that much damn money and still get nothing in return! Clearly, the administration is trying to spin it, but they just admitted they royally screwed up and there will be no “Hope” (or “Change”) well into next year. Which will be a perfect reminder for all those voters who will have been in the 3rd year of an economic disaster which began when the Democrats took control of Congress.

Update: Reader Merlin notes that this very same White House called this level of deficit spending ‘unsustainable’, as noted at QandO:

Even so, Orszag acknowledged that if the CBO projections prove accurate, Obama’s budget would produce deficits that could not be sustained.

What we can no longer sustain is this naive foolishness in DC. How many liberal/socialist disasters have to be seen before we realize the horrible damage these simpleton concepts produce? Too many people are struggling, losing precious time in their lives to get ahead, to waste time waiting for the DC liberals to actually admit they were wrong.

5 responses so far

5 Responses to “Obama Admits Liberal Economic Policies Are Failures”

  1. MerlinOS2 says:

    Back in March of this year, when both the White House and the CBO put out their budget deficit numbers, we were told that the CBO simply had it wrong and were much too pessimistic about the 10 year budget that the Obama administration was touting.

    The head of the White House’s Office of Management and Budget, Peter Orszag, had this to say at the time:

    White House budget chief Peter Orszag said that CBO’s long-range economic projections are more pessimistic than those of the White House, private economists and the Federal Reserve and that he remained confident that Obama’s budget, if enacted, would produce smaller deficits.

    Even so, Orszag acknowledged that if the CBO projections prove accurate, Obama’s budget would produce deficits that could not be sustained.

    “Deficits in the, let’s say, 5 percent of GDP range would lead to rising debt-to-GDP ratios that would ultimately not be sustainable,” Orszag told reporters.

    Deficits so big put upward pressure on interest rates as the government offers more attractive interest rates to attract borrowers.

    “I think deficits of 5 percent (of GDP) are unsupportable,” said economist Mark Zandi, chief economist at Moody’s “It will lead to higher interest rates to the point where it will force policymakers to make changes.”

  2. WWS says:

    note how Conman will have nothing to say about this.

    There is nothing he can say.

  3. BarbaraS says:

    The dems knew all along that the stimulus would not work. common sense (which I admit the dems are short of) would tell you that spending gigantic sums of money will do nothing but cause more debt. The stimulus was nothing more than paying off their supporters. That’s all it was or ever could be. I’ll bet as lot of that money has or will come back to Obama and the dem congressmen. That is their modis operandi. They are trying to bankrupt this country and doing a pretty good job of it.

    It has been proven at every recession that ever was the only thing that will bring us out is low spending and tax cuts. The dems are doing this to us deliberately. It is how they plan to control us. Make us desperate and we will turn to the government for help. And they in their benevolent fashion will help us… on their terms, of course.

    The unemployment figure is much higher. Obama and his people are not counting people who are no longer collecting unemployment. Just look at all the jobs lost then look at all the jobs created. They don’t add up to 9.8% This is a lie, just like all his other lies.

    I will never understand the stupidity of the American people who supported this POSand the dems and still support them. Maybe when people start disappearing, never to be heard from again, they will wake up.

  4. jd watson says:

    If there were any courageous conservatives with any spine, they would deploy their own “nuclear” option – withhold unanimous consent on the normal business of the House and Senate. This would paralyze both chambers and nothing could be don – the rules can’t be changed until the new session starts in Jan. 2011.