Why Obama’s big economic gamble is failing

June 19, 2009

A string of new polls seems to show that America’s belief in the wonder-working power of Obamanomics has begun to fade. A Pew poll found President Obama’s economic approval rating has fallen to 52 percent from 60 percent in April. A Wall Street Journal poll found 53 percent disapprove of his handling of GM and Chrysler vs. 39 who approve. And the New York Times found that 60 percent don’t think Obama has a “clear plan” to deal with the monstrous budget deficit.

Okay, here’s the thing: Obama took a tremendous economic and political gamble last January. The new president had the option of putting forward a stimulus plan that would attempt to reverse or significantly dampen America’s terrible economic downturn ASAP. The quickest and most effective approach would have been a big cut in payroll taxes. For $800 billion, combined Social Security and Medicare taxes could have been slashed by 6 percentage points, or 40 percent. That would have put $1,500 in worker paychecks and, according to one credible study, increased employment by 4 million jobs in 2009.

Instead, Obama chose to listen to Rahm “Never let a crisis go to waste” Emanuel and put forward an $800 billion plan that advanced his healthcare, energy and education policy goals — but pretty much neglected the economy in 2009. Team Obama had to fully understand this. Indeed, a study from the Congressional Budget Office study — when led by current Obama budget chief Peter Orszag — concluded that an Obama-like economic stimulus package would be “totally impractical” because it would take so long to implement. (True enough, only seven percent of the American Recovery and Reinvestment Act has been doled out so far.)

Presidential gamble. In short, Obama wagered that the deluge of money coming from the Federal Reserve would do the heavy lifting as far as stabilizing the financial sector and keeping the already apparent recession from turning into a real disaster. Voters would, thus, continue to support his policies to assert more government control over healthcare, heavily regulate energy through a costly cap-and-trade program and further intervene into the financial industry.

The gamble appears to have failed miserably, both economically and politically. The terrible tale of the tape: a) the current downturn is arguably the worse since the Great Depression; b) household wealth has fallen by $14 trillion during the past two years, including the first quarter of 2009; c) while the economy may not shrink as much this quarter as it did in the previous three months (-5.7 percent) or the final quarter of 2008 (-6.3 percent), unemployment is soaring; d) Obama himself said the jobless rate will hit 10 percent this year; d) even worse, the Federal Reserve sees it approaching 11 percent next year. (Recall, that the original White House economic analysis of the Obama economic plan never saw unemployment exceeding 8 percent if Obamanomics was passed by Congress.)

Falling public support. So now many Americans are rightfully wondering just what they are getting for that $800 billion, as well as massive budget deficits as far as the eye can see. And it goes beyond the mercurial world of polling. Pricey plans to deal with perceived climate change and healthcare are also appear on the ropes or are being scaled back as voters view them as lower priorities than job creation and taming out-of-control spending.

Green shoots? Oh there are some to be sure. Just yesterday, the Conference Board said its index of leading economic indicators rose by its biggest monthly amount in five years And the stock market is up nearly 40 percent from its lows as depression fears ebb. Gluskin Sheff economist David Rosenberg, by contrast, declares that the “era of the green shoots is over.” He points out that 1) bellwether FedEx described the economy as “extremely difficult” when it reported disappointing earnings , 2) United Airlines said second quarter traffic fell as much at 10.5 percent, 3) commercial real estate loan concerns led S&P to cut ratings on 22 non-“too big too fail” regional banks; 4) incomes are being pinched by rising gas prices, and 5) surging interest rates are refreezing the housing market.

Too little, too late.
Then, of course, there is rising unemployment, which is either a lagging indicator of an economy slowly on the mend or a forward indicator of a possible double-dip recession. Either way, it takes a long time for economic perceptions to change after a nasty downturn. Just ask all those congressional Democrats who lost their jobs in 1994. Even though the economy had then been growing for 14 straight quarters since the 1990-91 recession and the unemployment rate was down to 5.8 percent from a high of 7.8 percent, 72 percent of Americans still thought the economy was “fair” or “poor” and 66 percent though the nation was headed in the wrong direction. What do you think the national mood will be like on Election Day 2010 if unemployment is over 10 percent, gas prices near $4.00 a gallon and homes prices moribund? Certainly by then, the effectiveness of the “Blame Bush” mantra will have hit its expiration date for Obama and the rest of the Democratic Party.


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What do the American people get, in the case of BAC interest and the right to buy stock at a fixed price at a future date. Most Americans have no clue about the interest received it is the of bail out, the words sell news and are fashionable.The truth who cares !

Posted by tony rocco | Report as abusive

why don’t you mention that unlike past launches, people could pre-order online for a week???

You think that might have something to do with lines being shorter??????????????????????

Posted by Ed | Report as abusive

He did mention that you could pre-order. However, this year unlike any other previous “launch” there is the option to have it shipped through the mail. You can pre-order and pick it up in the store…which would give you the option of going anytime throughout the day…you could have bought it in the store and picked it up today…or, you could have had I shipped to your home or work…these factors are the reason there are not insane lines. Apple was not out to make headlines about people lining up, but rather made it easier on the consumer like a great company would.

Posted by Jesse | Report as abusive

“Instead, Obama chose to listen to Rahm “Never let a crisis to go waste” Emanuel and put forward an $800 billion plan that advanced his healthcare, energy…”

I imagine the quote was supposed to be “Never let a crisis GO TO waste”

Posted by John Malone | Report as abusive

[…] Why Obama’s Economic Gamble Is Failing – James Pethokoukis, Reuters […]

Posted by New Jersey CFO » Obamanomics has begun to fade | Report as abusive

You never mentioned the inflation and huge taxes that are coming. Obama and Geithner may be able to hold it off until after the congessional elections, but it’s still coming. We will be years in this crisis, and decades for our descendants to pay off the Obama, Geithner, Pelosi and Dodd spending spree’s.

Posted by Fred | Report as abusive

Those of us that did our due diligence prior to the election even without the medias assistance, new exactly what we were headed for down the pike.. It is his MO, no secrets I will give him that. It is a tough reality for those who voted for this who really did not think it would happen. Some do not mind the government intrusion or the tax increase, it is their choice. Many voted for him that are flabergasted at what is going on.

Posted by sharon | Report as abusive

Thankfully, Folks are finally waking up from their Obocoma’s. Obama was so cock-sure that voters gave him a mandate with his “Change you can believe in” mantra. What he continues to underestimate is that Americans do not want to “Change what we Believe” which is government of the people, by the people and for the people. Power to the People!

Posted by MEG | Report as abusive

I come from a relatively poor background but most of my thought process today revolves around what I learned in Corporate Finance 101, expertly instructed by a U of Penn alcoholic who could teach better intoxicated than most today while sober. I learned new terms like laissez- faire, capitalism, free-enterprise, risk-taking, profit, loss and the economic thinking of Adam Smith. Somewhere I determined that those terms plus hard work were my ticket to the American dream. Along the way I realized that socialism/communism has never done much but impoverish all who were foolish enough to participate. Obama, Emanuel and the whole clan are products of government handouts and social engineered politics. Anyone with any common sense could have seen two years ago that this guy’s background had heavy communist influence. In American politics you get what you want……and most wanted change….with no idea of what it would be. The price of mass ignorance!!!

Posted by bagit | Report as abusive

Yeah, Americans are waking up to what their own mindless stupidity has wrought on our country, but so what?

In six months, the Chicago Con Man has stolen hundreds and hundreds of billions of dollars from us, delivering it all to his cronies and his backers and his syncophants and his fellow thieves. Why not the safer, sounder tax cuts? Because Con Man’s entire system depends upon routing as many dollars through sticky hands as possible. And if you look at what the fake stimulus consists of, you’ll see that each dollar is going to pass through multiple sets of those sticky hands. (How many Dem mayors and governors have now set up “handling fees” by which they’ll siphon off some flat percentage of stimulus money passing through their territories? Look it up. The media won’t tell you, so you’ll have to find out some other way, of course.)

So, talking about Con Man’s current problems misses the main point: this early in his term, he’s already set up and turned on the biggest theft from working people by and to thieving people in history – everything else he might be able to steal will be icing on his confiscated cake.

Posted by bobby b | Report as abusive

The refusal of congressional Republicans to vote for the stimulus is looking pretty savvy right about now.

Posted by Ursus | Report as abusive

It is easier to understand why certain policy choices have been and will be made if one keeps in mind that it is not about improving health care, about creating a favorable climate for job growth, for fostering a good business climate, etc. With a little background study of the clothing free emporer one can understand that it is about power, control and manipulation. That’s what is meant by not letting a crisis go to waste.

Posted by gdb in central Texas | Report as abusive

Is it surprising that people are so critical of Obama and his methods. He has gotten more done in 5 months than Bush in 7 years. Look at all those including the write of the story saying that Obama is failing, we are spending too much money. To this I ask, “How much have we spent on Bush’s Wars” We continue to spend. If George Bush attempted to do ANYTHING with respect to national politics, economy, health care, infrastructure. We would not be in such a mess. Obama is cleaning up after 8 years of collusion and corruption at the highest levels of our government. At this point NO ONE can be overly critical of Obama, especially conservatives. Give us back the 3 trillion dollars we would have spent on these wars! Ask the fiscal conservatives how Bush paid for it, they will have no answer. So never mind the money that is spent on our home soil, look at the cost you are spending killing people.

Posted by Taher | Report as abusive

“The refusal of congressional Republicans to vote for the stimulus is looking pretty savvy right about now.”

Yeah, almost as savvy as their stewardship of the economy from 2001 – 2006 was stupid. Bush’s Big Government Conservatism and Tom Delay’s GOP K-Street Project screwed the pooch at exactly the wrong time: just as the biggest bubble of all time was about to burst. There ruinous fiscal irresponsibility opened the door for Dear Leader and the even bigger idiots on the Left to completely run the car into a ditch.

The GOP may recover–or not–but we would never even be talking about an ignorant, arrogant political neophyte like Obiwon as president if they hadn’t succumbed to Washington D.C.’s corruption. But you gotta give ’em credit: it only took them twelve years to achieve the level of mendacity that it took the Democrats sixty years in power to achieve.

Posted by PD Quig | Report as abusive

Obama has taking care of the banking industry (over-paid, unproductive) at taxpayer expense.

He is propping-up the incompetently run auto companies at taxpayer expense. The truth is they were headed for bancrupcy for some years, the down-turn only exposed the mis-management.

He is nibbling at the fringes of the problems in the investment industry – we’ll probably end-up with a new “csar” of some type.

When he had the blank slate to stimulate the economy with inovation he instead chose hand-outs to his constituencies and tired liberal initiatives.

Very un-inspiring so far – but he looks good.

Posted by Jared | Report as abusive

Nice to see an “objective news site” blog with a trite-y right-y commentary on the economy.
The writer is a journalist, of course, and spewing the lines that he uses in his “economics” lectures.
Notice the opinions masquerading as fact and the fine opinions on character of players that justify those opinions.
Can’t you keep this guy in his Kudlow sound bite world, and away from the adult topics?
Yeah, Mr journalist/amateur economist, let’s let the free market get this one. It did so well up to now.
Don’t see any real solutions from this blogger, just hopes for the midterm elections favoring the party of zero ideas.

Posted by Wayno | Report as abusive

Barack Obama took office in January 2009. Savior of all poor and old in America and yes we can! Five months later Obama the yes we can man has raised taxes on cigarettes so the poor and unemployed will have to pay 60 cents more a pack of smokes to smoke! Denied S/S cost of living increases for 2009-2010 to all Social Security Recipients claiming that inflation is so low there is no need to give a cost of living raise! Meanwhile, people are still losing jobs and or have no jobs or health insurance! Obama gave AIG and car companies billions of tax payer money and it has not saved the economy. Obama has failed those that voted for him. Millions of hard working Americans are now poverty stricken. They all got duped by Obama!

Posted by Mozelle | Report as abusive

Not all deficits are created equal. Deficit spending can be an investment, which produces more growth which pays for itself, possibly many times over, in the long run. Or, it can be a massive boondoggle which dilutes everyone but a select few’s wealth, and stifles innovation and future growth.

The Obama deficits are of the latter type. In the end, they will make us far poorer overall than we would otherwise be. The Bush deficits were A) far, far smaller B) were geared toward growth and a better future.

To the poster who decried “Bush’s Wars”, I would suggest to you that the successful democracy implanted in Iraq will be a seed that will sprout across the entire region, bring the oil rich nations of the Middle East into the 21st century at last, the benefits of which for the entire world will be incalculable. Already, we are witnessing the fruits emerge in the awakening in Iran. This could not have happened if the people of Iran still felt threatened by a mad, genocidal dictator to their west. When people feel threatened, they willingly trade freedom for security. The mullahs no longer have that justification with which to cow an insecure public.

Posted by Bart | Report as abusive

Ladies and Gentlemen, the blame game has begun again. First we blame Bush for the wars, which since most forgot started when a group set on the destruction of the American way attacked New York, yes Iraq was a mistake got it move on. Obama has done nothing that those who elected him could not have expected, except maybe handing them the cash directly.

Stop whinning on a blog and try emailing the wonderful people you all elected in congress. Get them to represent your ideas not their own.

The problem with the stimulas program is simple, my folks taught me this lesson a looooong time ago, don’t through money at a finicial problem you just ruin both. If a bank or business does make enough profit to pay the bill and you give a “loan” to help cover the bill now they have two bills to cover with the same profit that didn’t work in the first place. Gee I wonder what went wrong there.

Posted by Dmanz | Report as abusive

The effectiveness of the “Blame Bush” mantra may have already hit its expiration date, but based upon some of the comments here not all of Obama’s supporters seem willing to give it up just yet.

And why should they? It’s not like Obama and his supporters actually know what they are doing. Plan B is the same as Plan A: Blame Bush.

Posted by Mwalimu Daudi | Report as abusive

All of the tremendous additional costs contained in the Obama Administration and Congressional plans for health care and the crushing taxes and costs effected by the Cap-and_Trade plans on industry and citizens are pure anathema to everyone. All of this additional burden on top of current soaring national debt and unemployment plus uncontrolled spending by the Obama Administration have placed this nation on an EXPRESS TRAIN TO HELL and everyone will be required to pay dearly for this one-way trip. The scene is the most depressing we have ever experienced.

Posted by Al | Report as abusive

A very informative article, until I got to the last paragraph:

“What do you think the national mood will be like on Election Day 2010 if unemployment is over 10 percent, gas prices near $4.00 a gallon and homes prices moribund?”

Actually, high home prices favor the Democrats in the medium to long term. I refer you to Steve Sailer’s articles on affordable family formation. Surely the Republicans don’t want to be ruined in the long term for the sake of victory in 2010?

Also, it seems to me that the best that Obama can do to cut gas prices is to reduce demand for gas — possibly under the pretext of fighting global warming.

Posted by Snorri Godhi | Report as abusive

The author fails to recognize that Obama’s main goal is, and has always been, deconstruction followed by reorganization at a basic level. It’s an overused saying by now but remains true- crisis is opportunity.

Posted by SamIam | Report as abusive

El presidente HussaneBama & The Chicago Crime Syndicate are simply introducing us this first year of his “presidency” how they do things up in Chicago-land. Next Year he’s going to show us how he’ll organize Amerika into one gigantic community………….

Posted by Obushma | Report as abusive

Despite what you say, there is absolutely no agreement at all that a cut in the payroll tax would have been the most effective approach to stimulus. See this article, for example:
http://www.cbpp.org/cms/index.cfm?fa=vie w&id=2264
To argue otherwise is disingenous at best. It’s disappointing to see right-wing talking points like this on a supposedly objective newswire.

Posted by Kramer | Report as abusive

[…] Pethokoukis explains President Obama’s big economic failure: Okay, here’s the thing: Obama took a tremendous economic and political gamble last January. The […]

Posted by Missing Reagan » Blog Archive » Obama’s Big Fail | Report as abusive

“Moribund” means “at the point of death”. The author said that home *prices* would be moribund, and it’s very likely he means that the prices will drop further. It wouldn’t make sense for house prices to going significantly higher at the same time that everything else the author predicts.

Posted by Garance | Report as abusive

Silver lining: most of the unemployed are Democrats, and the more of them and the longer they are unemployed the less they can do to ruin the country. Do not buy anything except guns, ammo, and survival supplies. We are in the early stages of a civil war being waged by Obama and the lib-nazis. They will be defeated, and a new Free America will be formed.

Posted by Rick | Report as abusive

Classic. Reuters has been posting love letters to Obama for over a year, and liberals were just fine with that. Now comes a sober critique of his policies, and you go moonbat-crazy.

How you folks ever saw a messiah in a sleazy Chicago political thug is beyond me.

Posted by John the Libertarian | Report as abusive

Let’s all settle down. No serious commentator thought that Obama’s popularity bubble would be long-standing, or that he’d somehow soar above accountability and reality forever.

Obama’s big gamble was whether he could get passed the kind of enduring, unable-to-halt-or-reform legislation that has comprised the major landmarks in the history of Democratic Party dismantling of market mechanisms and incentives. It looks like he overreached, and I agree with James, did so at the expense of sound stewardship of the immediate crisis, exacerbating its length and severity immeasurably.

At least markets will endure.

Posted by apetra | Report as abusive

“He has gotten more done in 5 months than Bush in 7 years.”
– – – – –

Likewise, Billy The Kid robbed many more travelers than Horace The Overly Polite Cattle Rustler ever did, but you don’t find Billy’s descendants defending him with that statistic.

And, yeah, Bush did turn into Mr. Big Government, and I get such a (bitter) kick out of listening to Democrats complain about that. Remember back to those big-ticket projects that earned him the ire of economic conservatives, and you’ll be reminded that they were, in the majority, Democrat proposals (remember Teddy’s NCLB?) that Bush went for in a spirit of attempted bipartisanship. But, alas, it’s like the old fable about the frog who overcame his fear that the scorpion would sting him even though the scorpion was promising not to if froggie would carry him across the river, and so froggie carried the scorpion across the river on his back. Halfway, of course, the scorpion DID sting him, and as froggie was dying and sinking, he asked “why?”, and the scorpion said “it’s just my nature”, which is sort of the response Bush got when the entire lefty world excoriated him for passing Kennedy’s program.

Posted by bobby b | Report as abusive

Seriously, wouldn’t now be the time for new thinking, a better dynamic, a reason to believe that the republican party is something more than hate, tax cuts, and anti-abortion? What a terribly opinionated argument too. Ugh, blogs are horrible.

Posted by Matt | Report as abusive

For my own part, I agree with parts of what the author said, but it is absurd to claim “The quickest and most effective approach would have been a big cut in payroll taxes” as if it is a proven fact. A big tax cut is great as a short-term boost, but it doesn’t solve longterm systemic problems.

I am not at all happy with the stimulus plan that Obama came up with, but also remember that 35% of the cost of that plan IS for tax cuts. So, 1/3 of the money spent is being spent exactly as the author recommends.

Posted by Garance | Report as abusive

“Despite what you say, there is absolutely no agreement at all that a cut in the payroll tax would have been the most effective approach to stimulus.”
– – – – –

But there IS almost universal agreement that committing to spend hundreds of billions of dollars on your friends’ pet projects, and on union wishlists, and on organizations ramping up to win you next election for you by “fixing” the census, and on outright stolen gifts and bribes to people who can help you win the next election – especially when such a commitment results in only 7% spent six months into the program – will not ever conceivably produce a Keynesian stimulus effect, even if there really WAS such a thing as a Keynesian stimulus effect.

Posted by bobby b | Report as abusive

Some of you people do not understand timelines OR cause & effect.

First of all “Obama gave AIG… billions” FALSE – Thank Bush for starting us down the road of nationalizing.
http://www.reuters.com/article/GCA-Credi tCrisis/idUSTRE52F06320090316

This idea that Obama started this deficit spending is hilarious. Bush’s budget project $400 billion deficit… evidently looking more like $600B…
http://en.wikipedia.org/wiki/2009_United _States_federal_budget

Deficits get BIGGER when you are in a recession… it is math… if your Revenues are falling you will get bigger deficits. The recession by all account STARTED under Bush and 8 years of ignorance cannot be overturned in 5 short months.

Granted Obama is spending more as well… that is why he was elected. The Republicans wanted the same $ amounts, but just in tax cuts… which may or may not have an effect (see Bush’s tax cuts, yet we are in recession).

Little bit of patience maybe? How about thinking of the long term? Investments in the future of Americans would not normally seem to be a bad thing…

Posted by Keith | Report as abusive

“Kramer’s” post attacking the payroll tax holiday is pretty funny, especially the link to the Center for Budget and Policy Priorities, a tool of the welfare lobby, founded by the folks who gave us the brilliant success of the War on Poverty. When will they make their move to try to undo the success of mid-1990s welfare reform? You know its coming.

I contend that astroturfing with the talking points of the far left is the essence of disingenuous(ness).

Posted by Bryan | Report as abusive

I am so sick of seeing Obama on TV every day –

Bla bla bla bla bla

The question someone should ask Obama when he is using the whine & cry line about inherited all these problems –


When you took office did you “inherit” an America with more GOOD or BAD?

Obvious the answer must be GOOD – so STFU.

Anyone who complains about the prior person is not a leader –

Hint for Obama – you are the president of the USA – the commander in chief – the most powerful person in the world – if you don’t like what Bush did then CHANGE it –

Stop being the whiner in chief.

Posted by z71bill | Report as abusive

I think the only thing that has failed miserably so far is the expectations of instant gratification that our societial bailout would have as immediate results as the rescue of the bankers.

This coupled with a ‘no-visible results’ big picture team that has not proven itself yet of day-to-day problem solving skills.

His Big-Picture Agenda established, we should hope that President Obama is ready to start swating the flys.

An Texas attorney once said to me, when I was 20 and having difficulty in negotiation for a redevelopment of a 41 acre ocean front park in Galveston Texas embroiled in insider interests, ‘jimmy, why don’t you shoot a couple rabbits first.’ I took his advice and started renting office space in downtown Houston, Texas during its ‘great recession’ which lead to the renovation of the Dickson Travis Wheel Factory Houston’s third oldest structure, which provided a critical turn for the Market Square Historic District.

I think I would give that same solid advice to the new President,

“Mr. President, it is time to shoot a couple of Rabbits”.

Everyone has been expecting the grand slam and you’ve only just approached the plate, bases are loaded, it is time to surprize everyone point to the outfield then promptly ‘bunt one in’.

Most careers are started with one small success.

That’s my advice.

Posted by James Reginald Harris, Jr | Report as abusive

I voted for the guy and I am not happy with all the spending. There is some truth to what you are saying. But I don’t think you have the whole story. If it was really that easy then it would have been done. Here is the problem, while your solution of payroll tax cuts would keep the economy supper heated for the next year but what happens the year after?? Can the government already fighting two wars take compounded trillion dollar revenue losses year after year to keep the economy floating high? IF you believe in Reaganomics you might justify that the economy would grow and that would offset it … but the numbers never work out like that in the short term. Your tax cut would have had the same short term effect as his stimulus … but without the possibility of funding the creation of the next breakthrough markets. So, I reject the conspiracy theory here. If tax cuts solved things then they would be used like the fed uses the prime rate to balance economic growth. What you fail to mention is the nasty truth of it … we all went above our means. And add to this the downward pressure of first world economies built on outsourcing labor to cheap sources. How long did you think that could go before the chickens came home to roost? Cheap credit is more to blame then Bush or Obama. And your tax cut would be just $1500 in cheap credit. If we want to keep this lifestyle we need new markets to open to us expensive workers because the old stable markets are being shipped to the lowest bidders.

How bout them apples!

Posted by Juls | Report as abusive

I can’t understand why people are not more concerned. We are printing money like some third world country. We are debasing the currency, risking losing the Dollar’s status as the world’s reserve currency. We are running up incredible debts that our children and grand children will be paying for decades to come.

I have to say, the Boomers really did this country no favors. They got a great country in the 1950’s and sucked it dry. There will be nothing left for the next generation but debts and the cost of caring for all those retired Boomers who already spent their social security etc.

Posted by Kyle | Report as abusive

Elvis Presley for President

Posted by eyah baby | Report as abusive

A big cut in payroll taxes would have had minimum or no impact since most people would have used the extra cash to pay off debt or stuff it away in a secure savings account and not spend it. Anyway, what good would a payroll tax cut do for people who don’t have a job? The stimulus package was the right way to go. The mistake was not spending enough early enough. The stimulus should have been well over a trillion and most of that should have been spent in 2009/2010 and focused on CREATING JOBS!. Now the deal is done. You better hope that Obama’s stimulus is enough to get the job done otherwise this country will without a doubt see a deep depression. Obama made the mistake of compromising with Republicans who wanted him to fail, regardless of what it did to the country. He runs the same risk in compromising with the Republicans on the public option for health care reform. No public option, no reform, no savings, no improvement in the health care system.

Posted by Joseph | Report as abusive

To all those Obamabots with their “But Bush’s wars added trillions to the debt” mantra should consider that tu quoque arguments are falacious. They convince no one who is not already a Bush hater and an Obamabot. All they do is prove that Obamabots have no answer to the failure of Obamanomics.

Posted by Craig R. Harmon | Report as abusive

We all know the republican party line: make the worker suffer, balance the budget on the blood of the economic weakest in society- the retirees and the sick. Yeah take it out of Medicare and Social Security… You know, I watched my wife die over the space of months as her greedy vulturous children attempted first to kill her by forging an ‘advanced directive’ and then by conspiring to steal her other assets. All along this was Medicare and a supplement policy that paid her hospital bills of over a half a million or more dollars that was being undermined by these murderers. Maybe a little investigation into what is happening to some of their patients may be in order. My late wife’s children should be in prison for what they have done. They may yet! If I can find the evidence. A simple exhumation will tell it all! VRE’s! Hospital conspiracies to suppress word of them getting out because they are commercial hospital corporations and ‘bad news’ would hurt their image! Crooked administrators and ‘discharge specialists’ that want to sweep these diseases under the rug in our insurance model driven health care system. A single payer health care system like that in Canada would cure much of it, and reform of the so called ‘advance directive system’ that condones legal murder would also be in order.

Posted by chester drawers | Report as abusive

Sometimes when I read these reports I wonder who in the world you are using for the polls! Most Americans know exactly what kind of shape this country is in after the last self centered administration that was on a grab and run wild streak for 8 full years! It will take us a long time to fix this nation after the kind of things Cheny and Bush did and I for one COMPLETELY SUPPORT THE PRESIDENT!

Posted by Sandra Witecki | Report as abusive

Before long the entire country will look like California today. No more taxes! We don’t need schools or medical services, just cheap gas and more TV shows. Long live American freedom propelled by the gun loving nation.

Posted by Axel Schenger | Report as abusive

“The quickest and most effective approach would have been a big cut in payroll taxes. For $800 billion, combined Social Security and Medicare taxes could have been slashed by 6 percentage points, or 40 percent. That would have put $1,500 in worker paychecks and, according to one credible study, increased employment by 4 million jobs in 2009.”

Of course, Mr. righty journalist (and amateur economist), cutting payroll taxes might exacerbate social security problems…but righty’s don’t care ’bout that.
And…$30/week ain’t gonna boost nothin’ but movie sales on Friday nights…4 million jobs according to what “credible study”?…or right wing “think” tank?
People, if a claim defies logic…why do you accept it? Time and time again?

The blogger just rehashes opinions readily available on the web…can’t wait to read his new book!

Posted by Wayno | Report as abusive

We are coming to a cross-road very quickly. We all want to see our living expenses aka overhead stabalize. We can then begin to use our descretionary income for things that make the economy grow (new cars, cell phones, clothes, dinner out etc). But we are on the verge of failure as the democrats in power, both nationally and in my home state of Massachusetts, are running out of money to spend. Obama can keep the fed printing it but at what cost. Locally it is humorous seeing a liberal without 2 nickles… Programs, projects, new beginnings all cost money. In the world of government money equals taxes. Taxes cut into our decretionary income that we would otherwise be spending on things that make the economy grow. Living expenses such as oil and energy also cut into income. Doesn’t anybody get that without lowering our overhead (living expenses including taxes and energy costs) there will be no free money in anyones budget to stimulate the economy.

Posted by Mike | Report as abusive

“I can’t understand why people are not more concerned. We are printing money like some third world country. We are debasing the currency, risking losing the Dollar’s status as the world’s reserve currency. We are running up incredible debts that our children and grand children will be paying for decades to come.”

– I am in agreement except that this is the argument used against Obama when Bush was more guilty of this. The guilt is not a result of who printed more money … its a result of the circumstances. The spending was less compelled by the economic meltdown. Generationally, there is no difference between debt derived by government spending or debt derived by government tax rebates. The only way to really get back what we lost is to become innovators and producers again. We can’t just finance … we have to look to ourselves (and Canada) to produce what we consume.

“I have to say, the Boomers really did this country no favors. They got a great country in the 1950’s and sucked it dry. There will be nothing left for the next generation but debts”
– that’s an old wives tale. This country has progressed in every which way since the 50s. What your hearkening back to is a hay day for white males. If you don’t mind your prosperity enforced by segregation of women and minorities; then there might be some measure of nostalgia. But I will say something that was better about the 50’s; America consumed what America made. We where the hands that built economic value.
We need to slow things down and become local consumers and local producers.

Posted by Juls | Report as abusive

What economic gamble? The 9000 “nonexistent” earmarks in Obama’s stimulus package, the biggest heist of the US Treasury in history in my opinion, is undoubtedly regarded as being very successful inside the Obama camp. The recipients of these earmarks, not necessarily the designated recipients, are probably very happy campers.

Posted by B. Johnson | Report as abusive

“The quickest and most effective approach would have been a big cut in payroll taxes. For $800 billion, combined Social Security and Medicare taxes could have been slashed by 6 percentage points, or 40 percent. That would have put $1,500 in worker paychecks and, according to one credible study, increased employment by 4 million jobs in 2009.”

And here’s where he lost all credibility. In 2001, WHEN THE BUDGET WAS BALANCED, Bush implemented the same strategy of cutting taxes to boost the economy. I’m sure he also had some “credible study” that should how it should have made more jobs, but 8 years of reality proved differently. Why anyone would think more of the same would do anything but make matters worse is beyond me. Furthermore, I’m amazed this author expects Obama to completely reverse 8 years of wrong-headedness in 6 months. The fact that it’s even slowing down is an indicator of success.

I also like how his “tale of the tape” includes things that happened mostly under the Bush administration (point b) or is pure speculation (points d and … d!?). My god, I can’t believe he actually got paid to write this article. Hey Reuters, if you’re looking for some actually competent writers, hit me up!

Posted by Rex Maximus | Report as abusive

“A single payer health care system like that in Canada” – June, i am sorry to hear about your late wife. It sounds like the circumstances around her death where horrible. I would like to say that single payer health like in Canada won’t help. I lived 6 years in BC and their health system is bureaucratic and horrible. But likewise, the .5 million dollar costs for medical is dumbfounding and ridiculous. In shear man hours, the cost amounts to 5 highly paid professionals (100k year) full time salary for a year; or about 200 hrs a week of full time care. Given your experience you should oped the following: http://docs.google.com/View?id=dfz22bg6_ 1554wgh8xhn

Posted by Juls | Report as abusive

Americans need to make better decisions in their elections. There was a far better choice in the Presidential election that Americans blew off.

Posted by jason | Report as abusive

Obama will go down in history as a complete failure.

Posted by mark | Report as abusive

If only 7% of the stimulus money has been distributed so far and it’s too little too late, why don’t we stop the other 93% from going out and try something else.

Posted by Matt Gerhold | Report as abusive

Does the OP actually proof-read his work before posting? This missive is replete with grammatical errors. Good content. Grammer fail.

Posted by Bill Mitchell | Report as abusive

Ask the most ardent Obama supporter to name 5 things Obama had done in his political or professional life which prepared or qualified him to be POTUS and they would be hard-pressed to name even one.

The man was in public office for at least 10 years prior to becoming POTUS and did N.O.T.H.I.N.G. of note. No bills written, no businesses run, no budgets created, nothing governed, nothing.

Electing Barack Obama to be POTUS was the equivalent of putting a 3rd string AA pitcher with a .200 batting average in as the Starter in Game 7 of the World Series just because he gave a rousing clubhouse speech and looked good in the uniform.

Given this, his performance to date is not only unsurprising, it should have been expected.

Posted by Bill Mitchell | Report as abusive

The Stinkulus will be Obama’s legacy, and his downfall.
Interest rates are going to rise, the recession will now linger for a least another year, and unemployment will continue as more and more companies are forced into layoffs or bankruptcies.

By 2010, long after the honeymoon has ended and reality has fully set in, America will want to divorce itself from this disaster and change will come to Washington. I can only hope that by 2012, we can salvage the damage…

Posted by djn | Report as abusive

Hey kidz! Let’s all play “Count the Obots!”

See how many posts blame Bush for the rising gas prices and unemployment caused by the Democrat’s record-breaking debt, Socialization and over-regulation of business and labor, and refusual to exploit American resources!

Wheeeee! I’m up to 6! Six Obots! There will be more, so shields on full!

Posted by Faptimus Prime | Report as abusive

Blah blah blah Bush’s fault blah blah blah Bush’s mess blah blah blah Bush’s war blah blah blah GOP sucks blah blah blah Obama is being forced to quadruple our national debt because Bush blah blah blah Karl Rove blah blah blah Bush’s fault blah blah blah Rush Limbaugh blah blah blah…

There. That about sums up every O-bot on this thread.

Posted by Good Lt. | Report as abusive

>Grammer fail.

Spelling fail.

Posted by Good Lt. | Report as abusive

Rove, you magnificent bastard.

Posted by BPD | Report as abusive

“Americans need to make better decisions in their elections. There was a far better choice in the Presidential election that Americans blew off.
– Posted by jason ”

Yep… but it wouldn’t have mattered because she was on the bottom half of the ticket.

Posted by BPD | Report as abusive

[…] *Why Obama’s Big Economic Gamble is Failing, by James Pethokoukis. […]

Posted by The Quantum Conservative » Blog Archive » Daily Edition 06/19/09 | Report as abusive

Who says Obamula didn’t have a resume to speak of prior to POTUS??? He was a gangland community organizer forever before that and then there was that sppech his telePrompter gave @ the demRat convent in 2004 nominating GeneraL Kerry, what else do you want from him!!!

Posted by Obushma | Report as abusive

To the poster who implies SS would have dryed up due to tax deductions. Due to Bush’s TAX CUTS, the trending of the deficit in 2007 (including the war in Iraq) had dropped to 100 Billion in 2007 and MORE TAX INCOME EVER WAS received by the government that year.

Sadly, the democrat congress raised the minimum wage in 2008, TARP, bank bailouts, Freddie and Fannie failed, AIG, housing crisis, GM, Chrysler caused the increase in 2008 to 560 Billion.

Obama has since incresased that to ONLY 1.6 TRILLION or MORE THAN ALL US presidents COMBINED IN HISTORY and 12 TRILLION In 10 years..I got your hope and change.

Posted by dano | Report as abusive

All hail the Chocolate Jesus!

Posted by Denny Crane | Report as abusive

I just read this article again, thinking perhaps that my original comment was harsh. And it was even worse the second time around.
Firstly, the CBO study that the author cites DOES NOT SAY that an Obama like stimulus would be “totally impractical”. Check for yourselves on p.19:
http://www.cbo.gov/ftpdocs/89xx/doc8916/ 01-15-Econ_Stimulus.pdf
Here is the CBO quote:
“Some of the candidates for public works, such as grant funded initiatives to develop alternative energy sources,
are totally impractical for countercyclical policy, regardless of whatever other merits they may have.”
In case you are wondering, only around 2% of the stimulus is going to alternative energy.
This is an incredibly sloppy piece of journalism.

Posted by Kramer | Report as abusive

Many economists believed and still do believe that pouring money in to the economy was and is the right thing to do to prevent run away deflation. This would be the gravest thing for our economy and create an environment like Japan that could last for 10+ years. The naysayers and repugs will continue to use fear-mongering just like Bush did with the unnecessary Iraq war to portray the current conditions as being a failure. With billions being pumped in it takes time for it to take effect. President Obama said it can take 1 or more years before the full effect starts to be seen.

Also, the approach on the auto crisis was the right one. According to the repugs, it would have been best to just let them fail without any real plan and let the survival of the fittest remain standing. Typical repug strategy. No real plan and let the market decide. However, we are talking about people’s lives. The bailout was necessary in so much as too plan a constructive reorganization of the auto industry for it to remain competitive in a world market. Repugs play for political points and not for Americans to have better lives. This is the most anti-American party that modern times has seen. Fear to win political seats and power and not to make Americans lives better.

Posted by truthbetold | Report as abusive

Hilarious that the trolls believe government can spend money better than private enterprise. Obama has just lost 12 TRILLION in American wealth and another 12 Trillion over 10 years in American debt.

If government can SPEND its way out of debt (KEYNES WAS A FOOL) why noy spend 5 trillion, 10, 25, 50 Trillion to get out of debt? Name ANY country where socialism has worked to generate wealth for the people? NOT ONE. Only in those who practice capitalism can this be acheived.

Reagan, Kennedy, Bush ALL cut taxes and government income and job creation INCREASED EVERY time. Roosevelt raised taxes and tariffs on imports in the 40’s which caused a recession to become a depression lasting 12 years. The unemployment rate never below 15% during his terms until WW2 caused a massive economic machine back to growth.

Give us facts, not democratic spew.

Posted by dano | Report as abusive

It’s not too early to start impeachment proceedings.

Unfortunately this is what you get when you let a cult of personality to run rampant…a pretty, unqualified, narcissist who , judging by his decisions to date, had to have flunked Econ 101.

Excuse me, I just had a tingle up my leg.

Posted by CK | Report as abusive

To Dano,

Get your facts straight – The 8 failed years of the Bushless White House led us to the greatest drop in American wealth then the current Administration that is barely 6 months old. The tax cuts and the terrible run up on costs with 2 wars and an unregulated exotic trading system caused great upheaval in our economy. Bush failed on the economy, failed on foreign policy, failed on physical responsibility, failed on the environment, failed on health care, failed on Iran and failed on N. Korea.

Posted by truthbetold | Report as abusive

Japan has BEEN IN A RECESSION FOR 10 YEARS because they HAVE SPENT STIMULUS money every year and NOT tax deductions!!!

YES, let the market dictate the FREE ENTERPRISE MARKET. If GM cannot sell cars, GE fails just as every other business. Show me in the US Constitution where the government OWNS ANYTHING in the private sector? Again, where has socialism acheived anything? NO WHERE.

Let’s recap Obama’s plan: Obama said “do nothing and unemployment rate goes to 9% maximum, stimulate the economy (a bill NO ONE READ) and we get to 8% maximum”. Uhhh we are at 9.4% and rising. Do nothing, give the market back some cash tax deductions as did Reagan, Kennedy and Bush and government profits ROSE. Facts.

Blaming BUSH is really old, BECOME A MAN AND TAKE THE BLAME, Obama clone.


Posted by dano | Report as abusive

That tingle up your leg is you pissing on yourself. What a repug thug.

Posted by truthbetold | Report as abusive

FACT: Bush deficit in 2007 was 100 billion (including 2 wars)before the democrat congress SPENT 560 BILLION in 2008. If I spent 100 billion and you come in and spend 560 billion, don’t blame me for your excesses. and now spend 1.6 TRILLION or MORE THAN ALL PRESIDENTS IN UNITED STATES HISTORY.
You gotta quit blaming others for Obama failures.

Bush FREED 50 Million Muslims in Iraq and Afghanistan. He freed Arabs in Kuwait, Bosnia, Kosovo, Sudan…

Obama blames Israel for Arab problems?

Posted by dano | Report as abusive


When DEMS LOSE the debate resort to name calling.
OK I got it.

Posted by dano | Report as abusive

truthbetold or distorted to fit the democrat playbook

It is called fiscal policy.

The 12 trillion wealth CREATED by Bush until 2008’s democratic congress LOST IT ALL by the TARP, baoilouts, housing crunche by Barney loves Franks and Chris Dodd, AIG, Freddie and Fannie failures, rise in minimum wage, GM.


Posted by dano | Report as abusive

Unemployment is a lagging indicator. I guess you failed econ 101 like Bush did. This is always the tired old foolish mantra of the repug thugs – Socialism, weak on defense, higher taxes – the last election proved that this line of thinking is going nowhere and John (bomb, bomb, bomb Iran) McCain failed like the repug party did in promoting a way for a healthier economy.

Check and balances on Wall Street, a real energy policy for not only a better environment but also for national defense, a true foreign policy that doesn’t use falsehood to wage a war and break our civil liberties and a real focus to reign in health care costs and entitlement costs and pay as you go physical responsibility is the key to get us out of this mess.

I guess you believe the wonderful healthcare provided to our congressman/women is not a form of socialized medicine? I guess the FAA is not a form of socialized control of the skies? The socialism tag comes from people who are weak in honest debate and weak on ideas.

Posted by truthbetold | Report as abusive

Let me think, ah yes, Christ advocated a form of Socialism. However, the repug party is the furthest away from Christian thought that I can think of. Greed is the mantra of the Republican party. Greed and moral relativism is the flag of the repug party.

Posted by truthbetold | Report as abusive

Hate to tell you truthbetold but I am a registered Democrat and before this past election I voted Republican twice in my entire life (and we are talking all categories, dog catcher to commander in chief). I know a cult when it stares me in the face. I did not flunk Econ 101. Obama is a fraud and a sham. I suspect we will all wake up to that fact with the next 12 months. Hope we can clean up the mess. Hope North Korea does not do something really squirrelly in the mean time.

Posted by CK | Report as abusive

If Obama is a sham and a cult toy then Bush was the Devil incarnate.

Posted by truthbetold | Report as abusive

Ah truthbetold. It is time to take your medication and go to bed.

Posted by CK | Report as abusive

Let’s wind the clock back a bit and imagine what Bush’s term in office would have looked like *without* 9/11, shall we?

First the (very) mild recession of 2001 would not have dragged out for 3 years. The terrorist attacks on that date sent a terrible shock through the American economy, starting with the airlines. Bush’s tax cuts would have cleared out the recession and put the US on a firm growth curve. Note that even with the economic hit the economy from 2003 grew and deficits shrank all the way up until 2007, when Democrats regained control of Congress.

Secondly, we probably would not have invaded Iraq. President Bush never linked 9/11 to Iraq (despite hysterical accusations from the left) except to say that 9/11 taught us never to back down from a confrontation with a rogue enemy power: the risk was simply too great. ALL the Democrats who later claimed they’d been “fooled” into voting for the Iraq war were as convinced as Bush that Iraq was rebuilding its WMD stockpiles: again hysterical ranters aside he didn’t try to fool anyone. CIA chief Tenent told him (and Congress) that the case for WMDs was a “slam dunk”: if he had to believe anyone it was the CIA. Nevertheless w/o the impetus of 9/11 Bush would not have ordered the invasion, just as Clinton backed down back in 1998. Ironically his critics would still have given him grief over this, calling him a wimp like his father or some such.

Absent the economic hit of 9/11 and the costs of the Afghanistan and Iraq wars the US Treasury probably would have started posting surpluses again by 2006. Many of the Monday-morning quarterbacks criticizing the Bush years now would have been silenced, ignored, or turned 180o to praising Bush. In essence Bush made the best of a bad hand dealt him. He secured the US against terrorists, removed 2 brutal despotic regimes from power, and put the country on track for economic recovery up until the subprime meltdown – that incidently he foresaw and tried desperately to get Congress to deal with back in 2003 and again in 2005.

For his part Obama has taken the hand dealt him and dropped it on the floor. Instead of tax cuts he’s gone on a spending spree to deal with the economic downturn, despite the fact that no government in history has spent its way out of a recession. The 2009 deficit is projected at $1.85 Trillion dollars, will probably go over $1.9 Trillion, and thanks to all the new spending he’s proposing will INCREASE, not decrease, next year. CBO estimates of “only” $1.2 Trillion dollars of new red ink in 2010 don’t include the cost of the new entitlement programs he’s ramming through Congress this summer. The only chance Obama has of success is if 250 years of economic theory and experience are wrong and he really CAN fly if he flaps his arms and wishes hard enough. It’d be great if that happens: don’t be surprised if it doesn’t.

Posted by Orion | Report as abusive

All these obama supporters… have no clue…. no clue whatsoever…. Here’s a news flash… I don’t care if you think Obama’s policies are good or bad….. they are UNCONSTITUTIONAL. The involvement in GM (both Bush AND Obama) is UNCONSTITUTIONAL. Taking citizen’s money and giving to banks is UNCONSTITUTIONAL. Forcing states to take stimulus money over the wishes of their local government is UNCONSTITUTIONAL… ALL OF IT. You idiots need to read the damn Constitution and then RE-READ the 10th amendment.

The debt we are accumulating (and I don’t care WHO is responsible for it) will DESTROY OUR WAY OF LIFE. As soon as countries stop lending to us, there will be a run on the dollar, and we may find ourselves foraging for food. So keep worrying about stupid crap like windmills and healthcare for illegals… none of it will matter when there is MASSIVE social unrest in this country.

Posted by BPD | Report as abusive

Just stop and think a little –

Does it seem possible that we can borrow, tax & spend our country to prosperity?

It sounds real good to liberals – just have the government give everyone a good life – give the poor what they need to be happy –

Just TAKE it from the people who worked hard to earn it (the rich) pay – they have more money than they can spend – IT WILL BE A HAPPY WORLD

All you end up with is more people DEPENDANT on the government –

Really – how can anyone possibly think that having more Americans dependant on the government would be a good thing?

Posted by z71bill | Report as abusive

Liberalism = Slavery

Posted by BPD | Report as abusive

I have tha answer to clear up the whole mystery! there was a misprint at the Obama headquarters. It was supposed to read: “Yes, We CON!”

Posted by Ima Aataloss | Report as abusive

“I think the only thing that has failed miserably so far is the expectations of instant gratification that our societial bailout would have as immediate results as the rescue of the bankers.”
– – – – –

The entire basis for Keynes’ “stimulus effect” is PREDICATED upon instant gratification. That’s the whole friggin’ POINT! (Oh, dear Lord, I’ve been reduced to yelling all-caps for emphasis. I am lost.)

It’s an attempt to tickle up a completely feel-good, don’t-stop-and-read-the-numbers, irrational continuation of the “yeah, let’s go buy that . . . uh . . . thingie . . . that we sort of always wanted starting this morning!” philosophy, and then the guy who makes the thingies can quickly run out and buy a bag of those chocolate things from the woman down the street, who can then go buy that assault rifle she’s been wanting . . .

The reason a stimulus could maybe someday actually work is all built upon that multiplier effect – we spend this dollar on thingies, and the person we gave it to buys chocolate, and the chocolate seller buys a rifle, and . . . that’s what a multiplier effect is, and you can’t get a multiplier effect if you pick such stoopid, in-your-face campaign-pork spending choices that you can only manage to spend 7% of the target in the first six months.

(Okay, calm down, yeah, yeah, I may be using inappropriate caps, but he thinks we should be patient for the wonderful but slow effects of the impending Keynesian stimulus train. Sociology major, maybe.

Posted by bobby b | Report as abusive

1. yes the republicans were 40 % responsible for this mess
2. the republicans didnt reign in wall street while all of geitners and paulsons friends were Raping the 401k’s of millions of americans and paying their ceos millions
for 4 weeks worth of incompeting work.

B. Democrats Destroyed the financial sector by FORCIng banks to loan money to every illegal that was breathing.

C. Democrats undermined the voting system by hiring Acorn who signed up every illegal as a democrat in 20 states..

But But.. it gets better for you Idiots voted for the democraps.. and obama

obama / the dems and pelozi promised the Dumb american people
1. Free jobs via a 800 billion dollar stimulus
2. Free health care for ALL (never mind it cost 2 – 4 trillion dollars
3. FREE jobs for the auto manufacturers (who they then SCREWED by forcing them to be sold OVERSEAS)..
4. Free jobs II with the Porkulus bill for 1.2 trillion
5. FREE cars, homes and heck free everything..

And now that the unemployed ranks are Swelling as business are running for their lives..

AWAY from the democrats i hate to say this too you all
But you
Elected Them (both parties)
Encouraged Them (to give you FREE CRAP) both parties
Didnt want to pay for IT (YOU)..

and now your complaining because your all out of jobs
while obama rapes the treasury and sends the last jobs overseas???



Enjoy their your president and congress
NOT mine..
I would have them all TRIED for TREASON..

Posted by veteranoutrage | Report as abusive

Sometimes pundits point at WWII and say that the massive US spending for that war ended the Depression. Well, if you want to test that theory we could always have another world war and see what happens.

Truth is, though, that saying WWII ended the Depression is a bit simplistic. Its immediate effect was to put the US Depresson on “timeout”, as 10 Million of the unemployed American men were shipped overseas and the rest put to work on government projects supporting the war. Almost immediately after the last A-bomb fell on Nagasaki the US slipped into a recession, as said 10 Million men began returning home. Much of the massive demobilization of 1946-1947 was Congress desperately trying to cut costs because of the huge war deficit incurred.

What really, unarguably ended the US Depression was that at the end of the war the US was really the only major industrial nation that hadn’t been bombed back to the Stone Age. Europe cleared the rubble from its streets with US-made bulldozers and fed its people with US grain and meat. Most industrial orders went to US factories for 20 years. As the rest of the world rebuilt US dominance receded but that “golden time” paid off the war debt and put America back to work.

Now that we’re in a Mini-Depression/Major Recession (the differences are hard to put into words) Obama’s channelling FDR and his “Tax and Spend/Tax and Spend/Elect and Elect!” mantra. Trouble is that didn’t work in the 1930s and there’s no world war coming to paper over the error this time. He’s got the wrong prescription for ANY time.

Posted by Orion | Report as abusive

YOU all voted for these IDIOTS
You all wanted free crap..

Now that your butts are in a jam now your crying..??
To damn bad..
You dont get something for nothing..

Period anything or anyone that promises you FREE STUFF
is either
A scam artist..

A Communist..

Enjoy your have 4 more years of obama and the demoncraps..

But even then (our country wont survive 1 year)..
Heck the communist chinese are SCARED of
obama and the Democrats..
Their actually worried they will not only destroy the US economy
But the entire worlds..
And that they will LOOSE ALL of their inverstments

Thats why obama had to send hillarious clinton over to BEG the chinese to keep buying our CRAPPY WORHTLESS BONDS.


Enjoy you asked for it..

Posted by veteranoutrage | Report as abusive

THANK GODDNESS!!I never thought America would wake up and see what is going on here. We never should have let identity politics and the urgent need to make history cloud of vision. Now everyone will pay for the majority that gambled on obama. We knew he was inexperienced there is no excuse, sorry to say fellow americans. All we can do now is pay attention and stop him from sinking us further into this whole. Maybe now we can listen to the old guy that tried to warn us.Mccain.Dont we wish we had elected him now. So sad.

Posted by PISSED | Report as abusive

to truthbetold, June 19, 5:13 pm “…Bush failed on Iran, and NK”

Isn’t that the pot calling the kettle black!!

Posted by bl | Report as abusive

OMG.. obocoma.. I’d thought I’d heard it all. that is soooooooo funny, and so accurate.. like a sugar rush. I agree with the comment about not being surprised, in all fairness, the man did say what he was going to do, some people just didn’t believe him.. Just like they didn’t believe Hitler’s Mein Kamph. And if you object to linking that name with Obama’s, check into the history channel at the faces in the crowds at Hitler’s speechs and compare them with what you see and hear today. Im not the only one seeing the similarities. I heard the same comment twice today from vastly different people. I guess we can only pray that when we wake up from this nightmare, all we have is debt, not concentration camp survivors..

Posted by SALLY HORTON | Report as abusive

[…] James Pethokoukis: A string of new polls seems to show that America’s belief in the wonder-working power of Obamanomics has begun to fade. A Pew poll found President Obama’s economic approval rating has fallen to 52 percent from 60 percent in April. A Wall Street Journal poll found 53 percent disapprove of his handling of GM and Chrysler vs. 39 who approve. And the New York Times found that 60 percent don’t think Obama has a “clear plan” to deal with the monstrous budget deficit. […]

Posted by Your Abbreviated Pundit Round-up | Design Website | Report as abusive

[…] James Pethokoukis: […]

Posted by Your Abbreviated Pundit Round-up &nbsp;|&nbsp;Bloggers For Change | Report as abusive

James, we heard you on CNBC. You were against EVERYTHING Obama in the Fall. Don’t pretend. It was your friends on Wall Street that got us into this mess, not Obama. You guys are thieves!

Posted by Dan Asta | Report as abusive

I know many hear are just itching and eager to whip out the “Blame Bush” defense for Obama but when if ever will he have to take responsibility for his actions regarding the economy? It’s as if nothing Obama does to make a already bad situation worse will ever stick to him in the eyes of his supporters. History will show that trying to tax and borrow our way out of this economic downturn was the worst possible reaction. The first takes away from the economy it’s supposedly helping in the first place and the second so greatly increases out debt and deficit that it’s threatening our bonds and currency. Yet so many so blindly defend his policies. History had to be made electing him after all but nothing, not even the brutal reality of his disastrous economic policies it seems will be tolerated from tarnishing that decision by so many.

Posted by Daniel | Report as abusive

[…] Why Obama’s economic plan is failing miserably. […]

Posted by Happy Fathers Day UpsideTrader | Report as abusive

Liberals love this garbage. As long as writers like this are bashing Obama, they are not giving Republicans any message to get elected on. Keep on bashing! Waste your time, effort, money and space bashing obama. conservatives will keep bashing, liberals will keep winning elections and running the world.

Posted by Reginald Marselus | Report as abusive

[…] James Pethokoukis: A string of new polls seems to show that America’s belief in the wonder-working power of Obamanomics has begun to fade. A Pew poll found President Obama’s economic approval rating has fallen to 52 percent from 60 percent in April. A Wall Street Journal poll found 53 percent disapprove of his handling of GM and Chrysler vs. 39 who approve. And the New York Times found that 60 percent don’t think Obama has a “clear plan” to deal with the monstrous budget deficit. […]

Posted by Your Abbreviated Pundit Round-up | Design Website Easy | Report as abusive

Obama chose the Chicago Way. His AIG Bonus Guarantee/Stimulous bill didn’t have much stimulous in it. It was full of corrupt payoffs to Democratic special interests. How anyone could believe that the way to cure too much spending and debt was by quadrupling the spending, debt, and massive massive tax increases is beyond the understanding of any sane person. We have the most corrupt White House and Congress in U.S. history merrily wasting trillions of dollars on outright corruption. 9.4% Unemployment and shooting up like a rocket. Does Obama even care! Never waste a good crisis!!!

Posted by valwayne | Report as abusive

Americans should have went with Ron Paul.

Posted by jason | Report as abusive

“”Is it surprising that people are so critical of Obama and his methods. He has gotten more done in 5 months than Bush in 7 years.””

Yeah but all of it bad.

Posted by Emo | Report as abusive

James Pethokoukis’s article is one of the crappy propaganda that I’ve read. I think Obama is the continuation of Bush crappy policies in regard to economy and banking. How about you tell us your party affiliation James..
Economic is failing is because approval falls from 60 to 52? Did James ever said that Bush policies were failing when his approvals fell like a rock??

QUOTE “(True enough, only seven percent of the American Recovery and Reinvestment Act has been doled out so far.)”
-So for the one who called Obama bears market while the market drop, any of you called it Obama bulls when the index jumped 40% from it’s low and higher?? Yes that the sheer genius of people like Kudlow. And if you consider only 7% has been spent. How many of you genius remember the Trillion spending by the Bush administration and the Republicans when they first took office in 2000?? Which one of you were crying big spending at that time? You JAMES??
People like James shouldn’t forget the last stimulus passed by the Bush administration with promises to save some jobs…Did it James?
How about telling us which *credible study* that you cited James.
Hey James, how does a 14 TRILLIONS fall in wealth of the last 2 years can be contributed to Obama’s economic failure ?

IF James want to take S&P cut rating of banks as the sign policies are failing, you should trust S&P rating of junk bonds and subprime bonds of AAA eh..Maybe James would contribute that as the growth of economy???

If I remember correctly, the Republicans made excuses for Bush ineptitude in 2003 recession too…And the failing to stop attack 9 months after he took office…What was that excuse?? It wasn’t long enough, it’s not his fault? It would be too much to expect people like James to apply the same standard. Like I said, crappy articles borderline propaganda..Maybe we should have voted for McCain who believes economy is sound….Maybe 14 Trillions loss in wealth of the past 2 years is a sign of sound economy…..

Posted by Freethinking | Report as abusive

I see we have true ideologue logic here. Let’s look at this brilliant remark: to show that Obama’s actions have failed, our blogger notes that
“a) the current downturn is arguably the worse since the Great Depression; b) household wealth has fallen by $14 trillion during the past two years, including the first quarter of 2009;”
I see: the $14,000,000,000,000 of loss in the LAST TWO YEARS can be used to show Obama failed, because that’s “including the first quarter of 2009″ – in which 1.3 trillion of the 14 trillion dollar loss occurred. So somehow Obama magically takes on blame for the whole 14 trillion because a few months of his presidency, with a small proportion of the loss, are included in the period.

The error of logic in the above and similar remarks in this commentary is utterly shameless. You should be embarrassed. Frankly, I am, just from reading this.

Posted by MPM | Report as abusive

Anonymous Banker asks: TALF, Trepp LLC and JP Morgan Chase… is there a conflict of interest?

http://anonymousbanker.com/?p=372 With apologies, I had difficulty getting hyperlinks to work in comments. Please go to original article for links to all back up info.

I hate the TALF program. It is going to come back to bite each and every one of us …. the taxpayers. First it was designed to get our securitization market flowing again, presumably to unfreeze the credit markets. It was to be a mechanism for the Treasury Department to guarantee, with our tax dollars, toxic loans stripped from the Banks’ balance sheets. It is duplicitous and it is designed to be that way.

Now, in addition to subprime credit cards, subprime auto loans (FRBNY’s words, not mine), student loans, and small business loans, they’ve tagged on Commerical Mortgages.
So I went to the FRBNY’s website to read up on the terms and conditions and found that the FRBNY has hired a collateral monitor, a company by the name of Trepp LLC. And I was simply curious to find out if I could find out who really owned Trepp and if it’s involvement is as “arms length” as one would expect it to be.

Here is an interesting interview by CNBC with Tom Fink, senior vice president of Trepp. I noticed that CNBC never once asked him if there could be any perceived conflict of interest with Trepp accepting this position as “The Feds new Toxic Avenger”.

So, I pose this question to the blogging universe and to our leaders on the Hill and to President Obama:
How many Commercial Mortgages will Chase Bank be allowed to unload through TALF, a government program that has hired as its collateral monitor Trepp LLC whose UK Parent company utilizes, as their stockbroker, a company that is owned 50% by JP Morgan Chase.

Does anyone else see this as a conflict of interest?

Here’s the back up data to this question. Read it and decide for yourself. If you think I’m wrong, I’d love to hear you tell me why you think I’m wrong.

About Trepp, LLC
Trepp LLC, headquartered in New York City, is an established independent provider of CMBS and commercial real estate information, analytics and technology in the securities and investment management industry. Trepp serves the needs of both the primary and secondary markets by providing one of the largest commercially available trading quality CMBS deal libraries, as well as a suite of products for the CRE derivatives and whole loan markets. Trepp’s clients include broker dealers, commercial banks, asset managers, and investors.

About PPR
PPR, headquartered in Boston, is an established provider of independent global real estate research and portfolio strategy services to the institutional real estate community. PPR provides views on markets in North America, Europe and Asia and offers expertise in real estate markets, real estate portfolio analysis, mortgage risk, and the design of real estate investment strategies. Clients include commercial banks, insurance companies, Wall Street firms, rating agencies, government agencies, pension funds, investment advisors, real estate investment trusts, and private investors.
Trepp and PPR are each wholly owned by DMG Information, Inc., the business information division of Daily Mail and General Trust, plc (DMGT).

And here’s information on the parent company: Daily Mail and General Trust , plc (DMGT)
and their “stockbrokers”

JPMorgan Cazenove Ltd
20 Moorgate
Great Britain
Cazenove Group is a private company, registered in Jersey, which holds the 50% interest in J.P. Morgan Cazenove, the joint venture with J.P. Morgan.J.P. Morgan Cazenove is one of the UK’s leading investment banks. Jointly owned by J.P. Morgan and Cazenove, it combines innovative and impartial advice with a broad range of capabilities and proven execution skills.

Posted by Anonymous Banker | Report as abusive

Back and forth.

Is Bush to blame? Is Obama at fault? Flame on.

Who deserves more blame?

Maybe it’s the unsustainable American Way of Life that has brought us to this sad state of affairs: Oversized McMansions, pockets stuffed with the latest personal electronic marvels, gas-guzzling SUVs and people living below the poverty line who still manage to make themselves morbidly obese.

More. more. and still more.

Something’s gotta give. Something did.

Cheap oil fed the beast. Oil spiked, the system crashed.

The re-boot could last years. Get used to it. Best to try to keep your wits about you and your sense of humor if you have any left. Otherwise your own stress will take you down.

Posted by Bryan X | Report as abusive

And just wait until the minimum wage hike that Congress so proudly passed last year kicks in next month and leaves most business owners with the choice of seeing their payroll increase with no return on that money, or keep payroll the same and shed its least skilled workers.

Posted by Ian B | Report as abusive

Bush’s economic policies where terrible toward the end. Obama’s economic policies appear to be even worse from start to finish. But don’t blame him per se—-he pounced all over McCain for saying he wasn’t an economist……turns out neither was Obama.

But I’m sure he had some experience managing government funding as a community organizer and even more experience overseeing those millions in campaign contributions form Acorn……shoot, I’ll bet he’s still sitting on what…….60? 70 million?

Posted by Obushma | Report as abusive

hey taher, you are an idiot man. first of all, they are not bush’s wars. They are America’s war….better yet it is the war of the free world vs. islamic terrorists. You can debate whether the Iraq war was just. (which I think it was) but you cannot debate the war in Afghanistan. The Taliban would not give up Bin Laden after the 9/11 attacks. What would you have done you moron? You would have said ok no problem taliban. You are a fool. We ousted the taliban and Bin Laden is hiding in a cave. No attacks since because we have weakened them so much. And as far as obama and the economy. He has no idea what he is doing. NONE. He is gonna to prolong this recession just like FDR did with his crappy “NEW DEAL”. We need the GOP back in power. Obama is clueless on domestic policy and way to weak on foreign policy.

Posted by MIKE | Report as abusive

Looks as though the Equalization of Opportunity Act should pass by EOY. Too big to fail, emergency powers, soon we may take our complaints up with the Unification Board…

How prophetic, yes, never let a good crisis go to waste indeed.

Posted by Hank Reardon | Report as abusive

Thank you for this great analysis.
Whe have to be truthful and wake up from the Obama delusion.

Posted by Yemanou | Report as abusive

I read a lot of posts that fail to address about THREE MAJOR items’
A. What would have happened had nothing been done?
B. What all did Obama inherit, as this thing was NOT his making and in fact is world wide, most nations doing same stuff.
C. There is the REAL issue that USA medical lags way behind the rest of industrial world.. and NO PROOF of the various lies told about Canadians dieing off from lack of health care or rushing south to USA AKA 1990’s R spin brought back. There is proof massive dollars and lobby going to DC to prevent Obama plans. What is the TRUE cost to USA of remaining where we are now, as only a fool would thing USA Corps are going to improve their employee’s health programs.. as record shows different. So what is TRUE cost if we do not change..
NOTE Most of USA to dumbed down to even do compound interests. fully 1/3 did not grad HS.. so good bet lot’s of posting via lobby backing, as most of public simply to stupid to understand it anyway.

Note: On auto, even Japan funding auto, but then in one way or other always have, but USA is ONLY nation so dumbed down as to support it;s workers get wages cut to compete with plants run by foreign owners.. Somehow cannot see that happening in China, India or Japan or Germany…
PLEASE would everyone in favor of no change post their health care, costs, deductible, and if “paid for by self” is it somehow tax deductible via LLC, business owner, etc as that is in fact lost tax money AKA “single payer plan” and THAT INCLUDES CONGRESS AND ALL THE MEDIA, even the blowhards on “talk” as I suspect they pay for “own” via their “corp” and get tax deductions AKA you pay for it.. but would be nice to know about and put things in better perspective.

Posted by Charles | Report as abusive

YES! Punish the Industrialists, the Capitalists and those that support them!

How dare they seek to make a profit in ‘these’ troubled times. The public good must take precedence over an individual’s so-called rights.

Liberty is a fallacy…get over it.

Even Rob’t Reich has hit the trail and is espousing making capitalism better. A new “democratic capitalism” that protects “everyman”.

Excepting those with a differing point of view.

“We can rebuild it. We can make it stronger, better…>insert theme from 1.6 Trillion dollar Man<

Posted by Hank Reardon | Report as abusive

Yes, the Prez inherited some problems, but nothing he’s doing will correct them. Looks like his administration is turning out to be a big flop.

P.S. To Orion – enjoy your posts.

Posted by Lee | Report as abusive

When you read article and the blithering of extreme partisans (on both sides)you find what appears as cracks in various rants as gaping Grand Canyon “cracks”. The bit about “$4 Tril lost” and other such rants is at best amusing garbage as the “Funds” are not real, they are just over inflated estimates of some sort of “values” that did not really exist. As such, the various systems collapsed as they were based upon “value of paper”, which the smart folks collected REAL DOLLAR FEES”, not paid in “derivatives and other funny paper. Most were simply incompetents, that just road the gravy train and lawyers got congress to give them special interest benefits as in those LLC type billionaires that were in 14$ MAX tax bracket BEFORE deductions.
The real issue is nearly the last 30 years of R or D rule has been on where the “other 85%” got increasingly less and the upper end, which starts at $100K or more, got a lot more. THE AVERAGE wage in USA, pretax is $35K, and that means half earn even less. Now try and support family of four on that one and if DUAL income, pay around $600/month (low side) for health with a $5K deductable, which is quite real.
THE AVERAGE INCOME of those 65 or older is less then $18K, and pull $100/month out for medicare payments.
USA wages and benefits are going down, as is job market. We have been sold out by special interests. We have NO “Fair Trade the H3 in demand in China” costs $130K there, in USA $30K and the list of other USA auto is same. We cannot export auto’s to S Korea and most of Asia as their “fees” (not tariff as that is illegal) drive up cost of imports. Most of the lobby for foreign goods, WS, Banks and Health Care is revolving door DC types that wrote the rules they now know how to get around. We have a “ruling class” in Congress and business that simply does not care about the populace, and please none of the partisan “they did it as my side is great” garbage as not a hill of beans delta between either side as the Bills for greed always get “just enough votes” or a amendment to Bills corrects the “error of honesty” that might have slipped through by mistake.
The last time USA saw greatness was the golden ages of the 50-60’s when USA had highest number of HS/college grads thanks to the GI BILL
They were bright, they shut down the Gotta Commie behind every bush Senator Joe, they sent us into space, they built the nation and corrected the errors/horrors good ole boys and of Segregation, voter abuse, fought poverty, and tried to make a lot of playing fields more level. Unlike today they did not want quasi military weaponry as did not buy into “Fear of gov” as they found they were the government and acted.
They passed a lot on to their kids, whom hit the streets to stop a war (and avoid draft as did the upper end kids) toss our a crooked Nixon and many “went south” to fight the KKK’s and such. They actually stood up and shouted.. which is not done now days by the “me first and always” generations.
Today’s USA is no longer the golden age USA, it is not full of a dumbed down populace where a hot button minor issue gets votes as most simply to stupid to deal with major items. We live in a “what if they might or may, possible etc. based on rumors and fear as most simply to stupid to deal with facts, if they can even be flushed out. Now I read posts of “taxes to be increased” but I have yet to see where and whom, other then those in the 3-4% area, $250 K or more, are impacted. Less and less health care, now what was third world emergency medical volunteers active inside USA, why? Every industrial nation in world going single payer and not “Broke due nor have I seen any mass rallies to “End single payer plan in ANY nation”. No Canadians protesting, real world is NO evidence of Canadians pouring over borders for USA medical, nor die off’s, in Canada, unlike USA for lack of medical.
I see NO real plans as to alternates to Obama plans by posters or R’s, just the predictable “tax raised, inflation’s, less medical care, communist plots, etc with ZERO hard data, even less REAL workable alternates. The REAL data, the REAL measure of this “Free nation and how it is doing is “REAL WORTH”.. that for the less then bright is what you 100% own vse what you OWE.. or some simply state it as what you own free and clear. The 95%’rs are going down, the upper end 5% are growing at record rates. The systems that used to at least try to balance such are broken,as is now obvious and it is going to get worse. The fact is the upper end will benefit most, as they did in Great Depression is expected.
The basis of this nation being great is NOT “Freedoms, choice, protections,Constitution, Bill of R’s and all those great words. The real basis and keystone for the greatness of this nation and it’s continuation as such, is 100% based upon a big educated and informed,active (thinking) Middle Class. The founder KNEW of Europe where the Royalty, inheritable lords and ladies courts ruled, and the masses not smart enough to question well and listen better, to organize to correct the errors, as we say “Toss the bums out”. They knew that what they wrote of this nation would ONLY WORK if we had strong educated, smart middle class capable of controlling their government, not the other way around. They feared the Career Politician’s (we now have 95% return rate in Congress, as high at state levels) as much as a dumbed down society that was easily placated by meaningless hot button rhetoric’s. I suggest the worse fears of the founder has happened, as defined by “real worth term” the Mid Class, is gone, the trappings might remain as dressings, but real ownership is gone. 90% of the posts are pure partisan puke, offer only fear, lies, what if’s and ignore hard facts as they just might not fit today’s “key words to spread in support of” etc.
The USA is in deeper mess then most can comprehend, and it shows. The lies abound and feed the fears, paranoids, and fools shout them. We have even reached state where citizens buying up “all the guns and ammo we can find” for silly reasons. Yes a review of posts pretty much proves a well informed mid class that questions well and reasonably with the ability to grasp all sides of the issues is not there and backs up the educational-financial data that mid class is failing if not down to about 20-30% of nation. No “Free nation” or any other has survived without a strong mid class, ever. So I suggest for a bit, let’s act like a nation, not a bunch of partisan pukes that anything the other side says is wrong and if wrongs were done, post and admit them, as part of success is learning from history.
I am not thrilled by the spending or direction of the nation, nor was I over last 30 years, but last 10 or so were obviously out of control. I am more fed up with this nations bitter and vicious divisions where all D or R plans are automatically attacked by other side. I for one would like to see the nation returned to the citizens by BOTH parties.. so go ahead with the rants and raves and offer no real solutions.. just part of the “NEW (failing) USA where we now vote mindlessly “Against the other guy” rather then “For the guy we want as he told me what he will do and does it”.. Time to bring the nation together or kiss it good bye, there is no mid grounds.. The big thing is the demise of the Mid Class and no one seems to want to acknowledge the Mid Class has little real worth left.. how do we fix that not what “libs of neo’s” wand done.. as they are simply partisan fools.

Posted by Charles | Report as abusive

P.J. O’Rourke summed it up: “I’m not sure I learned anything (about government) except that giving money and power to government is like giving whiskey and car keys to teenage boys.” If the crowd on the Hill and in the White House all went on vacation for a year, we’d be a helluva lot better off. Turn off the air-conditioning!

(Charles (previous) is very enthused about the idea of Repubs and Dems having a kumbaya moment – not good – keep them fighting each other – maybe they’ll leave us alone.)

Democracy is loud and messy – it’s when things are very quiet that we should start to worry. They’re plotting.

Posted by Lee | Report as abusive

Lee, they all to often get “quite”, as they never stop plotting, for selves… I am fed up with the whole bunch and really troubled when on of the Swineate or House of Reprehensible s says “never in 12,20,30 etc years here have I ever etc”…

I note they often become “quite” at those rather odd midnight secessions, where “things go about in the dark”. We need to toss any on more then second term.. as they are simply to secure, and could care less about the commoners.. There is NO reason for the partisan garbage as they already know what the Bills and votes will be ahead of time. I guess China is way ahead of us in politics and law, they tend to shoot their crooks, we retire ours. Ever tried to get one of the Creatans in Congress, OR their aids to FULLY Explain their retirments, (which can start after 6 years of “service” when the crook hits 62, or the total medical, and all they get.. Simply to much for them to pass on to mere mortals
NOTE FULL DISCLOSURE in the Health Care, DO WANT ALL WHOM GET INTO IT, from the DC and even State Capitals, to the media to the shouting radio jerks, experts, etc. I WANT ALL before they speak to tell me whom pays for their-family health care, what are their costs deductibles, etc.
IF “well I buy my own etc” do “I” get it via some corp or LLC I set up, a tax deduction perhaps AKA stealth “single payer plan” as the taxpayer is in fact paying for it.
SO LET’S ALL DEMAND of the pro and cons of Health Care. FULL DISCLOSURE PLEASE.. then talk..

Posted by Charles | Report as abusive

GMT – brevity is the soul of wit and,
me think you protest too much.
Good day.

Posted by kdizzydaze | Report as abusive

disregard last post – wrong thread entirely and GMT?? Wth was I thinking??

Obama has mortgaged the future and the poor will now get poorer and the rich will get richer (as they also seek to protect their wealth – who wouldn’t in their position?).
Me, my job is in peril because my prospects and clients that would normally be spending on my produts and services to reduce their expenses in their data centers are putting projects on hold indefinitely OR they are now demanding guarantees that anything offered will save them money and have a satisfactory ROI. Showing people how money can be saved is one thing, but what I am being asked is akin to telling a car salesman that you want a guarantee that the car you buy will NEVER get into an accident or lose its value over the next ten years. Oh man, I am losing it!!!!

Posted by kdizzydaze | Report as abusive

Ya wanted a Rockstar in the White House – Ya got one.

David Lee Roth or Alice Cooper for President 2012!

Posted by Glenn P Morris NYC | Report as abusive

Ya wanted a Rockstar? Ya got a Rockstar…

Where’s David Lee Roth when we need him?

Posted by Glenn P Morris NYC | Report as abusive


What to do about Washington? Easy.
ID all the redistributionists aka RINO’s and Progressives and vote them out.


A two-year, 50% reduction in the Social Security and Medicare tax for both the employee and the employer. This provision would guarantee that virtually everyone who pays federal taxes (many of whom do not pay income tax but do pay payroll taxes) will have an immediate boost in income and that small businesses will see a dramatic increase in available cash to hire more people or make investments for the future. This reduction would also help the cash flow problems of government at all levels, which also have to pay the employer’s match.

This proposal creates the opportunity for a serious conversation with every employer about how it would increase their income and give them more resources to create jobs. The revenue loss to the trust funds would be transferred from the general fund (a better use for the money than either TARP or the Politicians Spending Act of February).

Permanently match the Chinese capital gains rate, which is zero. This is the rate Alan Greenspan testified in the late1970s was best for economic growth. It is also a relatively inexpensive thing to do in the current economy because people are going to have smaller gains.

Match the Irish corporate tax rate of 12.5%. America has had the highest corporate tax system in the world (if you combine federal and state taxes). Moving to a 12.5% corporate tax rate and combining it with zero capital gains will make America the most desirable economy in the world in which to invest.

Eliminate the death tax permanently. Inheritance is the most powerful accumulator of capital and eliminating the death tax has been consistently supported by over 75% of the American people.

Give President Obama the Opportunity to Keep His Word. Adopt the best of the small business tax proposals announced by candidate Obama in October 2008 and forgotten by the Obama Administration in 2009.

Posted by Glenn P Morris NYC | Report as abusive

Obama owns this economy now. Quit the Bush bashing. I am also sick of seeing him on TV trying to convince the American people what is good for them. Thank God the true Americans are voicing their opposition,it is not too late. Go capitalism!!!!!

Posted by glenda martin | Report as abusive

I understand the article and the economic and political debates (arguments) being made here by the analyticals on both sides. I would like to suggest to posters that they read articles on behavioral investing or behavioral purchasing. This may surprise the readers here but the vast majority of people do not follow politics. And they certainly are not educated in economics or even capable of spelling GDP much less understanding a chart forecasting GDP quarterly percentage growth.

So to the point, voters measure candidates on how they feel about the candidate. For example:

1) I feel Candidate X is for the little guy. I am a little guy. Candidate X is my choice.

2) I feel Candidate X is for unions. I am a union guy. Candidate X is my choice.

3) I feel Candidate X is for women. I am a woman. Candidate X is my choice.

4) I feel Candidate X is for gays. I am gay. Candidate X is my choice.

5) I feel Candidate X is for minorities. I am a minority. Candidate X is my choice.

(And I use the demographics on the Dem side only in order to shorten the post. For fun, create your own list for Repubs.)

If Candidate X has enough voter support to win, victors then go to Washington to create personal family wealth for themselves, their friends and possibly their community, in that priority order. Are the voters original feelings accurate, relevant or even considered by the candidate? Perhaps..

But lets get real about the role analytics of any sort whether healthcare, energy, engineering, but especially economics have to play in the voters decision process or the ensuing support.

The overwhelming majority of people I have dealt with never let facts or data get in the way of their opinions (feelings).

Posted by GotLife | Report as abusive