Why Obamanomics has failed

Wall Street Journal ^ | 6/30/10 | Allan Meltzer

[EscondidoSurfer]

The administration's stimulus program has failed. Growth is slow and unemployment remains high. The president, his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for which they are responsible.

But they want new stimulus measures—which is convincing evidence that they too recognize that the earlier measures failed. And so the U.S. was odd-man out at the G-20 meeting over the weekend, continuing to call for more government spending in the face of European resistance.

The contrast with President Reagan's antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months, the economy grew more than 9% and it continued to expand above trend rates.

[EscondidoSurfer]

The administration's stimulus program has failed. Growth is slow and unemployment remains high. The president, his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for which they are responsible.

But they want new stimulus measures—which is convincing evidence that they too recognize that the earlier measures failed. And so the U.S. was odd-man out at the G-20 meeting over the weekend, continuing to call for more government spending in the face of European resistance.

The contrast with President Reagan's antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months, the economy grew more than 9% and it continued to expand above trend rates.

[TASMANIANRED]

Can’t get the right answer if you don’t ask the right question.

The answer is Yes, they are turning the US into a 3rd world dictatorship.

[GunningForTheBuddha]

Not enough Skittle Sh@tting Unicorns, we’ll need to pass another kajillion $ stimulus package to buy more of them.

[JLAGRAYFOX]

Looking at the total failure of POTUS Obama, it is now time for the American people to rise up and demand that the Democrat party force Obama to resign or impeach him immediately. Obama wants nothing more then the absolute destruction of the American economy. The sooner all American realize that, the sooner the Demcrats broom Obama, the sooner private sector jobs will grow, unemployment will drop and the economy will grow in healthy fashion. If Obama stays in office, the country, the economy will go onward and continue on the “Obama” downward spiral. Democrat Party!!! IMPEACH Failed POTUS Barack Hussein Obama, immediately!!!!

[RayChuang88]

I think Obama--fearing the prospect of facing an ANGRY Republican Congress in January 2011--will suddenly announce real economic stimulus measures such as the most dramatic change in our income tax laws in many years with a much simpler system with very few deductions and a reduced marginal tax rate--written in a way to encourage Americans to keep as much of their savings and capital investments in the USA as possible.

[Moonman62]

The problem with Obamanomics is it isn’t much different from W-nomics.

[Minn]

Why Obamanomics has failed

Because it consists of bad ideas that have failed over and over, and Obama is dumber than many that have tried the bad ideas before him.

[reformedliberal]

Interesting. That would continue the tradition of American Presidents being known for the opposite of their campaign stance.

It could only happen if he begins to realize that he had better craft a legacy other than bankrupting the country if he wants the book deals and speaking engagements after his single term.

Perhaps he has been coached in preparation for his political rehabilitation.

[al baby]

SPENDING
YOUR WAY OUT OF DEBT IS LIKE SCREWING YOUR WAY OUT OF HIV

[Charles Martel]

I think Obama--fearing the prospect of facing an ANGRY Republican Congress in January 2011--will suddenly announce real economic stimulus measures such as the most dramatic change in our income tax laws in many years with a much simpler system with very few deductions and a reduced marginal tax rate--written in a way to encourage Americans to keep as much of their savings and capital investments in the USA as possible.

That is NOT what the guy was groomed for.

[Cobra64]

It's too bad that some FReepers don't agree with this paragraph (from the article):

"The Obama economic team ignored past history. The two most successful fiscal stimulus programs since World War II—under Kennedy-Johnson and Reagan—took the form of permanent reductions in corporate and marginal tax rates. Economist Arthur Okun, who had a major role in developing the Kennedy-Johnson program, later analyzed the effect of individual items. He concluded that corporate tax reduction was most effective"

Author: Mr. Meltzer is a professor of economics at Carnegie Mellon University, a visiting scholar at the American Enterprise Institute, and the author of "A History of the Federal Reserve" (University of Chicago Press, 2003 and 2010).

[Biblebelter]

Obamanomics has failed in my view for two reasons.

Barry has NEVER really been on either side of the private sector economy.

He has never held a job in the private sector or more importantly NEVER had to make a PAYROLL.

Barry has lived a charmed life of entitlements and NEVER had to sweat to put bread on the table.

[Vendome]

and monkeys will start flying out my butt...

[1rudeboy]

The problem with Obamanomics is it isn’t much different from W-nomics.

Unintentionally hilarious. LOL

[ThunderSleeps]

I disagree. What you are describing would be a complete U-turn for the Marxist/socialist obama. You and I may know you're right, and that the measures you describe would turn the economy around smartly. However, obama is an ideologue, and as someone once said, we marry our ideas more surely than our spouses. obama won't give up on big government, socialism, and a permanently crippled America. He sees that as a desirable outcome.

[SaraJohnson]

The author claims that obamanation ignored history, but in reality Marxists air brush history to their liking. They don’t change reality with that tatic; only the words of their propagandists.

[Seaplaner]

Almost daily, Mr. Obama uses his rhetorical skill to castigate businessmen who have the audacity to hope for profitable opportunities.

Mister Obama, IIRC, will not release his college transcripts. I suspect most highly that everything Mister Obama learned about basic, macro economics came mainly from his sociology and political science professors and text books.

.

[RipSawyer]

Yeah, that’ll happen alright, right after Superman blows all that oil back into the seabed under the gulf and Spiderman seals the new volcano by stretching a web over the top of it.
Oh, and Wonderwoman will die of a broken heart because I refused to divorce my wife and marry her. As soon as these events come to pass you will see a huge flock of flying pigs trailing a banner promising that Obummer will do just as you said.

[RipSawyer]

I agree he ain’t too bright but dumb ain’t the trouble. The problem is that his goal is to destroy this country. When you are shouting the loudest about what a failure he is he will be shuttled off to a glorious retirement as his handlers pound him on the back and say, “Way to go, hero”.