Another Economic 'Summit' (Yawn...)

Summit meetings “are for when nobody knows what to do,” wryly observed Stephen Moore of The Wall Street Journal commenting on president Obama’s call for an economic summit conference in December to discuss the nation’s fiscal woes.


And Moore is right. Because Moore is a realist who understands actual economics… you know, supply and demand, taxes, economies of scale and the rest. Obama, on the other hand, is a socialist who thinks that economic problems are solved by meetings of wizards in Washington, and at Harvard, where all the “smart” people reside.


But so far Obama’s plans do not seem to be working. While his administration claimed that the February stimulus would save and create millions of jobs, employment losses have continued unabated since its passage.


Things soon will be much, much better, however. Because Obama has announced a ‘summit’.


Cool… Now we’re gonna see some real action!


Here is Obama’s press conference about his proposed ‘economic summit’, with analytical comments added: 


Obama: Good morning, everybody.  Before departing for Asia this morning, I’d like to make a brief statement about the economy. Comment: Again? You haven’t shut up about the economy since the day after you were elected. Give it a rest, will ya!


Obama: Over the past 10 months, we’ve taken a number of bold steps to break the back of this recession.  Comment: No you have not. You have spread around some government money. But that does not revive economies. It hurts economic growth.


Obama: We’ve worked to stabilize the financial system, revive lending to small businesses and families, and prevent responsible homeowners from losing their homes.  And through the Recovery Act, we’ve cut taxes for middle class families, extended and increased unemployment insurance, and created and saved more than a million jobs. Comment: Your “tax cuts for the middle class” were no such thing. They were small tax ‘rebates’ that temporarily stimulated the economy. Real tax ‘cuts’ mean that you cut tax RATES over long periods so that people don’t end up sending their money to Washington in the first place, but rather they plan for the future without fear of the government taking their wealth.


Obama: As a result, the economy is now growing again for the first time in more than a year — and faster than at any time in the past two years.  Comment: It’s phony growth, just a debt-funded blip.

Obama: But even though we’ve slowed the loss of jobs — and today’s report on the continued decline in unemployment claims is a hopeful sign — the economic growth that we’ve seen has not yet led to the job growth that we desperately need.  Comment: And when this happened to Bush – even after the trauma of 9/11 – your media buddies screamed “jobless recovery”. But now they will not. Wonder why?


Obama: As I’ve said from the start of this crisis, hiring often takes time to catch up to economic growth.  And given the magnitude of the economic turmoil that we’ve experienced, employers are reluctant to hire. Comment: And they are going to be more reluctant to hire after you get done telling them to give every employee health insurance and paid flu leave, and everything else. Pretty soon you will be demanding lifetime employment like they do in Europe. Which leads to companies NOT hiring anybody anytime and jobs going overseas.


Obama: Small businesses and large firms are demanding more of their employees, (are) increasing their hours, and adding temporary workers — but these companies have not yet been willing to take the steps necessary to hire again.  Comment: And whenever employers increase work hours in a good economy, employers are called ‘robber barons’ by the media for pushing their workers too hard. Now we are thankful for any activity. Because the Obama Economy is so bad.


Obama: Meanwhile, millions of Americans — our friends, our neighbors, our family members — are desperately searching for jobs.  This is one of the great challenges that remains in our economy — a challenge that my administration is absolutely determined to meet. Comment: Right. It is called “wealth creation” leading to new jobs. Reagan did it. You are not.


Obama: We all know that there are limits to what government can and should do, even during such difficult times.  But we have an obligation to consider every additional, responsible step that we can [take] to encourage and accelerate job creation in this country.  Comment: Rational economists like Milton Friedman would tell you to take one simple, proven step that you are refusing to take – cut taxes and regulations on business so that they expand. The “limits to what government can and should do” are to get out of the way of economic growth.


Obama: And that’s why, in December, we’ll be holding a forum at the White House on jobs and economic growth.  Comment: Wow. A summit meeting… What rubbish. Summit meeting, forum, it’s all the same. Another photo-op to make you look like you are doing something.


Obama: We’ll gather CEOs and small business owners, economists and financial experts, as well as representatives from labor unions and nonprofit groups, to talk about how we can work together to create jobs and get this economy moving again. Comment: Forget about including your friends in the the labor  unions. They have killed millions of jobs in America since the end of World War II. Just study the history of the steel industry, railroads and the auto industry to understand how. It is happening today at GM, Chrysler and Ford.


Obama: It’s important that we don’t make any ill-considered decisions — even with the best intentions — particularly at a time when our resources are so limited.  Comment: You’ve already made bad decisions. Now un-make them. That will spur the economy.


Obama: But it’s just as important that we are open to any demonstrably good idea to supplement the steps we’ve already taken to put America back to work.  That’s what this forum is about. Comment: Hey, I’ve got an idea. Stop hamstringing and frightening business and rich people with more taxes. They will invest their time and wealth and you can go on vacation for the next three years. Because every day you are in Washington holding your summit conferences and news conferences is a bad day for our economy.


Obama: In the coming days, I’ll also be meeting with leaders abroad to discuss a strategy for growth that is both balanced and broadly shared.  It’s a strategy in which Asian and Pacific markets are open to our exports — and one in which prosperity around the world is no longer as dependent on American consumption and borrowing, but rather more on American innovation and products. Comment: Yeah, the same jobs we’ve exported because many businesses can’t make a profit anymore here in America thanks to taxes, regulations, labor union wage demands, lawsuits and enviro regs, all coming from YOUR Democrat party.


Obama: It’s through these steps with our partners, in addition to the work we’re doing here at home, that we will not only revive our economy in the short term, but rebuild it stronger in the long term.  That’s been the focus of our efforts these past 10 months — it will continue to be our focus in the months ahead. Comment: It’s all out of focus. There is no wealth being created. That’s why people voted Republican in the November 3 election after the Democrats said that Americans never, ever would vote Republican ever again.


Obama: Thanks very much, everybody. Comment: And thank you, Mr. President. Now go to Asia. And stay there. So that America can prosper once again.


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