Posted on 11/15/2008 5:37:10 AM PST by Kaslin
Fiscal Policy: President-elect Obama says he's modeling his recovery plan on Clintonomics because it pulled the economy out of a ditch last decade. But that's an old myth — and a dangerous one at that.
He rationalizes that Clinton raised taxes during a recession, and look what happened — average wages went up, along with economic growth and the stock market. And eventually the Treasury reported surpluses after decades of deficits.
Obama is even recycling Clinton's old economic team. Standing behind him at his first press conference were old Clinton hands Bob Reich, Laura Tyson, Larry Summers and Bob Rubin. The show of support was designed to calm the markets after the post-election stock sell-off.
But it hasn't worked, probably because Wall Street knows that Obama is also recycling myths about the Clinton years.
For starters, Clinton didn't turn the economy around. The recovery had already begun before he took office. In fact, the mild recession ended in 1991 — long before he was even elected.
(Excerpt) Read more at ibdeditorials.com ...
Yeah, let him put more taxes on the”rich” and they, we, etc. may choose not to make any money for this cause. And if we do, we can give it to our choice of charity!
The Clinton years were good because the US and the world were going through a transformational economic age that Clinton had NOTHING to do with.
The INTERNET (and personal computer). It sparked the development of thousands of new companies, new jobs, new stock incentives, and wealth.
All money generated by the Internet and PC’s were ADDED to the US economy, which also enjoyed a $250 billion bonus thanks to the ‘peace dividend’ from the collapse of the Soviet Union.
Clinton was like that guy who stands on the seashore and orders the tides to move, and then thinks he was responsible.
Why isn’t President-elect Obama modeling his recovery plan on Bushonomics because it pulled the economy out of a ditch Clintononomics put it in before Bush yook over?
Normally true. The Bush team, coupled with a Republican Congress in 2001-2006, screwed up by trying to play the game on DEMOCRAT terms... i.e. more largess, benefits, quotas, vote buying, etc.
I hate to admit it, but a Republican leader who was born into money (like GWB) often gives away the store out of a sense of guilt.
Republicans who earned their money themselves are MUCH more pragmatic and frugle (think Reagan) when it comes to spending taxpayer money.
late 1970’s - Dems control house, senate, and white house - stagflation and recession.
1980’s white house and senate are republican, congress passes some of Reagan’s initiatives - longest peacetime expansion in history.
1987 - dems regain senate - stock market crashes.
early 1990’s - dems have congress, liberal republican in white house - recession.
1995 - republicans control congress - economic expansion until dot-com bubble bursts in 2000
2001 - dems regain senate, liberal republican in whitehouse - slow recovery
2003 - republicans regain whitehouse - recovery accelerates
2007 - dems get congress, liberal republican in white house - real estate bubble bursts, credit crunch begins.
IBD is spot on, too many people forget that Klinton’s Cap Gains taxes were aided by the dot.com boom that had worthless stocks being sold at incredible price to earnings ration, in the late 90’s, virtually any Internet Enterprise made over night millionaires and filled the Treasury Dept’s coffers.
They may try the same thing with “green” mandates, but it will end up in the same place...the dustbin..
If that be the case then, Clinton plus 9/11 leads us to today's mess.
Ominously, the 90’s were the decade where credit derivitaves became a powerful force in investment and led to where we are today. Part of the economic growth in the 90’s was due to that.
He’s going to gut the US military.
1) the continued extraordinarily low price of energy (thank you, George H. W. Bush for protecting Kuwait and Saudi Arabia);
2) the continuing computer revolution (the "internet" reached 25% of the American public by 1998, the most rapid spread of any major technology in human history---thank you, Ronald Reagan for the capital gains tax cuts that sparked the innovation and invention);
3) and the opening of the former "Iron Curtain" countries to trade (due to both Reagan and Bush), creating a massive new market for U.S. goods. These were ENTIRELY due to Republican policies.
just amazing they missed that. Also amazing that they fail to mention that the economy was nosediving from mid 2000 on, though i suppose that would take the luster off the argument of how much a Republican Congress meant . I remember Larry Summers on MTP post -election '00, pleading , bleating, "don't talk down the economy" so that Q4 would come in nominally positive and he could get away with saying that he hadn't left US in a recession. By March '01, the media was already blaming Bush for economic down turn.
Liberals invariably attempt to make the case that after Slick Willie signed a $300 billion tax hike into law, the economy zoomed. (Naturally, they never call it a tax hike. They use terms like “economic recovery plan” or some such nonsense).
Liberals decided that they cane dupe many Americans by claiming that the tax increases were the cause of the robust economy. The old “correlation” = “cause & effect” canard.
Of course, we all know that the southern migration of birds causes temperatures to drop in the north.
Clinton was like that guy who stands on the seashore and orders the tides to move, and then thinks he was responsible.”
That sums up everything about Bill Clinton perfectly.
Wonder if Michelle NObama is going to “invest” $1000 into “cattle futures” and get back $100,000 a week later?
The entire economic climate is entirely different from when Clinton slid into office.
Get extra supplies into your houe now, people. It’s going to be a very bumpy ride if the courts don’t get NObama out before he goes into office.
I have had the opinion that Clinton’s economy was like a shyster who buys a business, transfers out all the value, then goes into bankruptcy”
I remember that they actually took stuff out of the White House!!! Did it EVER get returned???
He’s going to gut the US military”
That alone troubles me very much.
Add to it the “Civilian Militia” he wants to form scares the he^^ out of me.
You're thinking of King Kanute and he wasn't so high on himself. He did this demonstration for his courtiers and flatterers to knock off their ridiculous, high-sounding praise of him.
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