Barack Obama, Nancy Pelosi, and Harry Reid all three entered 2009 with a commanding mandate and as much political power as any Democratic Leadership has had since Lyndon Johnson in 1965. Their mandate ordered them to fix the economy and put America back to work. They didn’t want to do that. They wanted to socialize the economy instead.
An examination of what is wrong with the economy, shows that the Democratic Party’s efforts in this regard have very little to do with what is wrong. The Democrats have faced an economy that is not featuring consumer spending, has lost a significant number of jobs and has been badly hurt by questionable and morally compromised decision-making by powerful members of the banking industry.
To boost consumer spending, Barack Obama has thrown out short-term tax credits with loud, splashy press releases. He has also passed an $800Bn stimulus plan; adorned like a gaudy Corinthian Column, with pork barrel bonanzas such as The Austin Frisbee Golf Course and The Chula Vista Dog Walk. He also has Joe Biden out hawking a website that brags about jobs that have been created or saved.
To solve the job loss problem directly, The Obama Administration has taken over the laggard firms of the failing automotive industry faster than they can finish canning their workforces. These companies still continue to fail badly in their respective markets. A sales report survey of Ford Motor Company (still a private corporation) and a similar look at GM and Chrysler (now government employment programs) demonstrates that several months of hope and change haven’t changed either into a reliable automaker.
A look at the current state of the banking industry reveals the impacts of over-connecting, unaccountable decision makers playing with money that belonged to others. These unaccountable decision makers were Congressmen and Senators in impregnable seats. When they passed the Community Reinvestment and banking Act and repealed The Glass Stiegel Act, they ordered the banks to lend money to people with no means to repay these loans.
The banks took advantage of this deliberate and callous non-regulation. Congress then turned around and yelled at the banks when the scheme failed. Our President, who previously sued banks to force them to issue more high-risk loans, told the CEOs of major banking institutions he was “the only thing between them and the pitch-forks.” Never underestimate President Obama’s mordant sense of irony.
The response to this failure by Congress to behave with one scintilla on ethical probity has been for President Obama to appoint a Pay Czar. The Pay Czar monitors the executive compensation given to bankers; rather than Members of Congress.
The Pay Czar is like the entire Democratic reaction to the current economic crisis. The Pay Czar is loud. The Pay Czar gets headlines. The Pay Czar satisfies angry populists with an axe to grind by redirecting their spleen towards less culpable targets than Democratic Congressional Leadership. Most importantly, the Pay Czar gives the Democrats more control over how other people make their living.
Nolan Finley, OP-ED writer for The Detroit News, describes how the Democrats have played the economic crisis as an issue.
Last week’s job numbers show unemployment nationally bumping past 10 percent and surpassing 15 percent in Michigan. Unemployment keeps climbing, even though President Barack Obama and Congress nine months ago committed $787 billion to creating jobs.
Since then, neither the White House nor Congress has spent a minute honestly analyzing whether the stimulus program is accomplishing its goal, and if not, what other approaches might work.
Instead, the administration is spinning dismal economic reports into positive news, allowing both it and Congress to ignore the economy while they pursue their ideological ends.
The ideological ends being pursued represent nothing more than a fundamental restructuring of the entire United States. They perform this restructuring by targeting their reforms at both Health Care and Energy. Again, these reforms, if passed and signed into law, would centralize all control over these two vital industries in Washington, DC. Mr. Finley describes the fundamental trade-off Barack Obama has made in pursuit of his goals.
Democrats are revealing that putting the country back to work is a lesser priority than passing their social agenda. If that weren’t true, they wouldn’t even consider any measure that would raise taxes on job creators. Higher taxes, particularly on business, always result in fewer jobs. Both the health care and climate change bills will trigger huge tax hikes for every taxpayer.
And this fundamental trade-off is what drives and shapes the fundamental policies proposed for economic recovery. The current leadership in Washington has chosen to trade economic recovery in return for the traditional liberal wish list of the Leftmost Wing of the Democratic Party. They were not elected to do this and know it will make for an extremely angry electorate.
They therefore fabricate loud, impressive-sounding do-nothing economic policies aimed at distracting the desperate public. Thus the Democratic Party offers America a smokescreen rather than an economic solution.