Obama Rambles on about the Economy... Again

In his fourth major statement on the economy since his election, Obama droned on for 2,500 words in a press conference saying essentially the same thing that he has been saying all along. Here are excerpts from his January 8 statement, along with comments from Nikitas3.com


Obama: “We start 2009 in the midst of a crisis unlike any we have seen in our lifetime, a crisis that has only deepened over the last few weeks…. Nearly 2 million jobs have been now lost. And on Friday, we’re likely to learn that we lost more jobs last year than at any time since World War II.”

Comment: We know. We know. Obama has said this ten times since he was elected. His insistently negative tone is intended to demoralize the public so that Obama can do whatever he wants. A president is supposed to inspire, not demoralize. But Obama is a new kind of far-left president and people on the left use such tactics to undermine the public psyche. Leftists are negativists. They want to control you. And to do that, first they must undermine you and weaken you.


Obama: “The unemployment rate could reach double digits. Our economy could fall $1 trillion short of its full capacity, which translates into more than $12,000 in lost income for a family of four. We could lose a generation of potential and promise as more young Americans are forced to forego dreams of college or the chance to train for the jobs of the future…. This crisis did not happen solely by some accident of history or normal turn of the business cycle. And we won’t get out of it by simply waiting for a better day to come or relying on the worn-out dogmas of the past.”

Comment: More negativity. And this wasn’t a normal business cycle. This crisis comes after years of governnment waste and Democrat laws forcing  banks to lend good money to people who can’t pay it back. The “worn-out dogmas of the past” are the government taxing, spending and redistributing wealth.


Obama: “For years, too many Wall Street executives made imprudent and dangerous decisions, seeking profits with too little regard for risk, too little regulatory scrutiny, and too little accountability. Banks made loans without concern for whether borrowers could repay them, and some borrowers took advantage of cheap credit to take on debt they couldn’t afford. Politicians spent taxpayer money without wisdom or discipline and too often focused on scoring political points instead of problems they were sent here to solve.”

Comment: Are you talking about Wall Street executives like James Johnson and Richard Fuld, the big-time Democrat operatives and donors who ran Lehman Brothers into the ground? Are you talking about the Community Reinvestment Act, created by liberals, to force banks into lending to people who could not pay it back? Are you talking about your own Democrat party that has spent money like a drunken sailor while conservatives warned about the dire consequences?


Obama: “Only government can break the cycle that are crippling our economy, where a lack of spending leads to lost jobs, which leads to even less spending, where an inability to lend and borrow stops growth and leads to even less credit.”

Comment: “Only government can break the cycle” is frightening. By seeking to stoke the economy with massive deficit spending, he will be putting off the day when the economy recovers through natural forces. The economy was doomed by government action. It will recover only by private-sector work.


Obama: “This plan must begin today, a plan I’m confident will save or create at least 3 million jobs over the next few years. It’s not just another public works program…. That’s why the overwhelming majority of the jobs created will be in the private sector, while our plan will save the public sector jobs of teachers, police officers, firefighters, and others who provide vital services.

Comment: The jobs he wants to “save” are the unionized Big 3 auto company jobs. The unions have conceded virtually nothing in the Detroit bailout. Now Obama will give them all the money they want and they will pay his party back through campaign contributions and other in-kind initiatives at election time (phone banks, get-out-the-vote drives etc.). And the “public sector” jobs he’s talking about include more unionized workers to add to the rolls of school teachers, cops and firefighters who already are making statistically the best salaries in America in their respective employment classes. He also will double funding for Amtrak to almost $3 billion, funding another group of unionized government employees running a largely inefficient, dilapidated and ineffective train network requiring huge government subsidies. They too will kick back to the Democrat party.

Regarding education, Vermont Republican governor Jim Douglas started his fourth term with a vow to rein in education spending. From 2006 to fiscal 2010, spending on kindergarten through 12th grade in Vermont schools will have grown $283 million (it’s a very small state) while student enrollment falls 4.4 percent, Douglas said. “This means that since 2006, for every student who left the rolls, schools added — not reduced — $65,000 in costs. Our current education funding system is failing taxpayers and local voters… Only a wholesale transformation will return control to communities and put education spending on a sustainable course for the future.”

Democrats and teacher unions are fighting any challenge to rampant education spending increases because teacher unions always want more. These unions are all pro-Obama and Obama is pro-union.


Obama: “To finally spark the creation of a clean energy economy, we will double the production of alternative energy in the next three years.

Comment: The ethanol boondoggle proves that ‘alternative energy’ does not work. These programs simply are government transfers of wealth to people like Al Gore and his enviro friends who have invested in these utopian windmills and solar panels. Wind power will easily consume all of our energy investment capital and return a fraction of the energy, causing prices to skyrocket.


Obama: “We will equip tens of thousands of schools, community colleges, and public universities with 21st-century classrooms, labs, and libraries. We’ll provide new computers, new technology, and new training for teachers.”

Comment: Notice that he only talks about spending more money on education and not about education reform. We have been spending massive amounts on public education and getting less and less every year in return. Obama is continuing to promote the idea that  if you give every kid an expensive computer or a new building, that that kid will do better in school.  This is just an excuse for more money for education, and not the necessary reform.


Obama: “Yes, we’ll put people to work repairing crumbling roads, bridges and schools, by eliminating the backlog of well- planned, worthy, and needed infrastructure projects, but we’ll also do more to retrofit America for a global economy.”

Comment: It recently was reported that the mayor of Providence, Rhode Island includes a polar bear exhibit and a soccer field among the projects he wants to fund with federal bailout dollars. Nikitas3.com commented on this phenomenon recently, in which money wasted on non-crucial projects will lead to calls for even more money to fix crucial infrastructure.


Obama: “That means updating the way we get our electricity, by starting to build a new smart grid that will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation.

Comment: We do not need a new electricity grid. There is no person or company in America than can’t get power with the current grid. This suggestion of a new power grid is just another hugely expensive Al Gore boondoggle to get money for the expanded power grid that will be needed to accommodate widely dispersed wind energy sources.


Obama: “Government at every level will have to tighten its belt, but we’ll help struggling states avoid harmful budget cuts, as long as they take responsibility and use the money to maintain essential services, like police, fire, education, and health care.”

Comment: The reason that governments are not maintaining services like police, fire, education and health care is because Obama’s Democrat friends across the country have for decades been loading up  budgets with billions in unnecessary government pork. The states with the worst budget crises are the most liberal states like California, Massachusetts and New York.


Obama: We have to make tough choices and smart investments today so that, as the economy recovers, the deficits start coming down.”

Comment: This is just days after Obama said we’d have trillion dollar deficits for years.


Obama: “And it means reforming a weak and outdated regulatory system so that we can better withstand financial shocks and better protect consumers, investors, and businesses from the reckless greed and risk- taking that must never endanger our prosperity again.

Comment: Republicans were warning for years to regulate Democrat-run Fannie Mae more closely but two Democrats, Christopher Dodd, senator from Connecticut, and Barney Frank, congressman from Massachusetts said, No, no, Fannie Mae has no problems. It’s all on videotape, Mr. president-elect. It’s YOUR party that blocked regulation.


Obama: “I urge Congress to move as quickly as possible on behalf of the American people.

Comment: Obama wants to act quickly and spend trillions before the people know what is happening. That is why he opens with very pessimistic assessments – to frighten people.  


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