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Obama: Most economically ignorant president ever?
Division of Labour ^ | September 21, 2011 | Brad Smith

Posted on 09/26/2011 7:55:10 AM PDT by 1rudeboy

I've been saying for some time that Barack Obama is the most economically ignorant president since Zachary Taylor, but I increasingly fear I've been doing the general a disservice. It's not just erroneous economics, but sheer ignorance of markets and economics.

You see it in periodic comments of the President. Perhaps the most famous came when he said that ATMs and airport ticket kiosks lead to unemployment: “When you go to a bank you use the ATM, you don’t go to a bank teller. Or you go to the airport and you use a kiosk instead of checking in at the gate.” (An interesting tidbit - do a Google search for this - you'll see the comment was more or less uncommented upon in the "mainstream media.") He's used this a couple times, here also blaming internet travel sites.

But there have been numerous others, as when he explained that auto companies had to make more electric cars in order to satisfy the market. This showed a titanic ignorance of how markets work, the President apparently of the belief that "the market" was what a central planner decided was needed, not what consumers actually wanted. He shows know concept of consumer preference, the subjective value of goods and services, or even the role of prices in providing information to firms.

Now comes this quote from Ron Suskind's book, Confidence Men:

"Both [Chair of the Council of Economic Advisors Christina Roemer and National Economic Council Director Lawrence Summers] were concerned by something the President had said in a morning briefing: that he thought the high unemployment was due to productivity gains in the economy. Summers and Romer were startled.

“What was driving unemployment was clearly deficient aggregate demand,” Romer said. “We wondered where this could be coming from. We both tried to convince him otherwise. He wouldn’t budge.”

So our President really does think productivity is bad for the economy. As economist Scott Sumner says, "So for 200 years rapid productivity growth didn’t cause any serious unemployment problems in America, but now, right after NGDP collapses, we are to believe it is producing mass unemployment, even though recent productivity gains have been rather low. I’m at a loss for words. We elected a Luddite as President of the United States."


TOPICS: Books/Literature; Business/Economy; Government; Politics; Society
KEYWORDS: confidencemen; partisanmediashills; ronsuskind; timgeithner

1 posted on 09/26/2011 7:55:11 AM PDT by 1rudeboy
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To: 1rudeboy

Ignorant or malicious.


2 posted on 09/26/2011 7:58:48 AM PDT by Broker (God is sovereign)
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To: 1rudeboy

so this is the quaint “information technology creates more jobs than it eliminates” argument?


3 posted on 09/26/2011 8:00:06 AM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: the invisib1e hand

uh, no


4 posted on 09/26/2011 8:01:04 AM PDT by 1rudeboy
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To: Broker
Cities sell tax free municipal bonds to finance projects.
Barky thinks these should be taxed ‘cause only the rich folks buy them.

Goodbye cities...

5 posted on 09/26/2011 8:02:28 AM PDT by Eric in the Ozarks
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To: 1rudeboy

While traveling by car during one of his many overseas travels, Professor Milton Friedman spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic

Then instead of shovels, why don’t you give them spoons and create even more jobs?” Friedman inquired


6 posted on 09/26/2011 8:03:56 AM PDT by kabar
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To: 1rudeboy

is the most economically ignorant president?

This isn’t the question, it’s the answer. What did they expect from a failed community organizer. He is the worst president in history.

He is going to spend his last year in office finishing the damage he started.


7 posted on 09/26/2011 8:04:27 AM PDT by mardi59 (Time to turn off the tv so I don't break it..)
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To: 1rudeboy
So our President really does think productivity is bad for the economy.

uh, it sure sounds like it.

uh, cuz "productivity" is a euphemism for elimination of labor requirements by technology.

8 posted on 09/26/2011 8:05:46 AM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: Broker

I’ll take malicious for $500 Alex.


9 posted on 09/26/2011 8:06:15 AM PDT by Free Vulcan (Vote Republican! You can vote Democrat when you're dead.)
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To: the invisib1e hand

Not all technology is information technology, but thanks for playing.


10 posted on 09/26/2011 8:07:09 AM PDT by 1rudeboy
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To: the invisib1e hand

Few people noted that just a week after his first “ATMs cause unemployment” comment he stated at a robotics factory that “robotics is the future of the American economy”.

Uhm... so which is it? Automation good or automation bad?

I just don’t believe he ever even thinks about what appears on his teleprompter.


11 posted on 09/26/2011 8:10:35 AM PDT by PhilosopherStone1000
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To: 1rudeboy

Ignorant, yes. Anti business, absolutely.


12 posted on 09/26/2011 8:11:09 AM PDT by monocle
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To: 1rudeboy

Ignorant, yes. Anti business, absolutely.


13 posted on 09/26/2011 8:11:09 AM PDT by monocle
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To: 1rudeboy

Ignorant, yes. Anti business, absolutely.


14 posted on 09/26/2011 8:11:09 AM PDT by monocle
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To: mardi59
What did they expect from a failed community organizer. He is the worst president in history.

They saw it coming...

But as to the man himself as president, I'm certain that -- apart from that miracle or series of miracles -- he will be a political, economic, and administrative disaster. ~~ 11/06/08

15 posted on 09/26/2011 8:11:48 AM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: PhilosopherStone1000
I just don’t believe he ever even thinks about what appears on his teleprompter.

...or what he hears in his earpiece.

16 posted on 09/26/2011 8:13:54 AM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: Broker

Well, what would you expect from a college student who got failing grades in both Economics and American History?

Boy genius? Hardly!

See for yourself: Check his transcripts!


17 posted on 09/26/2011 8:21:19 AM PDT by pfony1
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To: 1rudeboy
Not all technology is information technology

Well, I think an ATM and an Airline Ticket Website are.

, but thanks for playing.

not sure what this means. But please don't explain.

Also, don't mistake replies to Post #1 as being directed to you -- they are directed to the subject itself.

18 posted on 09/26/2011 8:21:25 AM PDT by the invisib1e hand (...then they came for the guitars, and we kicked their sorry faggot asses into the dust)
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To: Broker

He lives in the world of the old USSR ,where he can control everything


19 posted on 09/26/2011 8:28:05 AM PDT by molson209
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To: kabar
While traveling by car during one of his many overseas travels, Professor Milton Friedman spotted scores of road builders moving earth with shovels instead of modern machinery. When he asked why powerful equipment wasn’t used instead of so many laborers, his host told him it was to keep employment high in the construction industry. If they used tractors or modern road building equipment, fewer people would have jobs was his host’s logic

This idea is not new. A Roman emperor refused to allow the use of canal-digging machinery because he wanted to create jobs. As someone once put it, when you use 20 men to do a job that could be done by 1, you haven't created 20 jobs, you've split a paycheck 20 ways. Workers can be paid only out of the wealth created by their productive activity. If you use more workers to create the same amount of wealth, there's less for each one.

20 posted on 09/26/2011 8:28:30 AM PDT by JoeFromSidney (New book: RESISTANCE TO TYRANNY. A primer on armed revolt. Available form Amazon.)
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To: the invisib1e hand
1. You should review the definition of "information technology."
2. Not all gains in productivity are the result of "information technology."
3. An ATM is not an example of of "information technology," and an internet website might only be in the broadest sense.

It appears to me that your delicate Luddite sensibilities have been violated by this blog post, when the concern you expressed in your very first post wasn't even addressed.

21 posted on 09/26/2011 8:29:04 AM PDT by 1rudeboy
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To: 1rudeboy

BULLETIN: Obama has decided to replace Tim Geithner. Obama will announce that the CEO of Susie’s Lemonade will serve as his chief economic adviser as well as Secretary of the Treasury. Obama was said to have made the decision after witnessing her incredible ability to create jobs on TV.


22 posted on 09/26/2011 8:30:26 AM PDT by hflynn
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To: 1rudeboy

BULLETIN: Obama has decided to replace Tim Geithner. Obama will announce that the CEO of Susie’s Lemonade will serve as his chief economic adviser as well as Secretary of the Treasury. Obama was said to have made the decision after witnessing her incredible ability to create jobs on TV.


23 posted on 09/26/2011 8:31:00 AM PDT by hflynn
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To: 1rudeboy

Yes, he is - and so are far too many Americans who still think he’s doing a good job with the economy. Good grief, what does it take to wake some people up?


24 posted on 09/26/2011 8:41:57 AM PDT by MEGoody (Ye shall know the truth, and the truth shall make you free.)
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To: 1rudeboy; the invisib1e hand
1rudeboy wrote: An ATM is not an example of of "information technology,"

There may be confusion because an ATM is so directly dependent upon information technology. It would not exist without it. The reverse is not true; that is, a human clerk was able to benefit from the productivity increase due to information technology by accessing account information through a computer prior to the invention of the ATM.

The term "internet website" is even trickier. We certainly had reference librarians who would respond to a customer request for information. Perhaps we should refer to the internet as an "Automated Librarian Machine", among other things.

25 posted on 09/26/2011 9:30:44 AM PDT by William Tell
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