Posted on 09/06/2010 6:42:50 PM PDT by jazusamo
President Barack Obama boldly proclaims, "The buck stops here!" But, whenever his policies are criticized, he acts as if the buck stopped with George W. Bush.
The party line that we are likely to be hearing from now until the November elections is that Obama "inherited" the big federal budget deficits and that he has to "clean up the mess" left in the economy by the Republicans. This may convince those who want to be convinced, but it will not stand up under scrutiny.
No President of the United States can create either a budget deficit or a budget surplus. All spending bills originate in the House of Representatives and all taxes are voted into law by Congress.
Democrats controlled both houses of Congress before Barack Obama became president. The deficit he inherited was created by the Congressional Democrats, including Senator Barack Obama, who did absolutely nothing to oppose the runaway spending. He was one of the biggest of the big spenders.
The last time the federal government had a budget surplus, Bill Clinton was president, so it was called "the Clinton surplus." But Republicans controlled the House of Representatives, where all spending bills originate, for the first time in 40 years. It was also the first budget surplus in more than a quarter of a century.
The only direct power that any president has that can affect deficits and surpluses is the power to veto spending bills. President Bush did not veto enough spending bills but Senator Obama and his fellow Democrats in control of Congress were the ones who passed the spending bills.
Today, with Barack Obama in the White House, allied with Harry Reid and Nancy Pelosi in charge in Congress, the national debt is a bigger share of the national output than it has been in more than half a century. And its share is projected to continue going up for years to come, becoming larger than national output in 2012.
Having created this scary situation, President Obama now says, "Don't give in to fear. Let's reach for hope." The voters reached for hope when they elected Obama. The fear comes from what he has done since taking office.
"The worst thing we could do is to go back to the very same policies that created this mess in the first place," he said recently. "In November, you're going to have that choice."
Another political fable is that the current economic downturn is due to not enough government regulation of the housing and financial markets. But it was precisely the government regulators, under pressure from politicians, who forced banks and other lending institutions to lower their standards for making mortgage loans.
These risky loans, and the defaults that followed, were what set off a chain reaction of massive financial losses that brought down the whole economy.
Was this due to George W. Bush and the Republicans? Only partly. Most of those who pushed the lowering of mortgage lending standards were Democrats-- notably Congressman Barney Frank and Senator Christopher Dodd, though too many Republicans went along.
At the heart of these policies were Fannie Mae and Freddie Mac, who bought huge amounts of risky mortgages, passing the risk on from the banks that lent the money (and made the profits) to the taxpayers who were not even aware that they would end up paying in the end.
When President Bush said in 2004 that Fannie Mae and Freddie Mac should be reined in, 76 members of the House of Representatives issued a statement to the contrary. These included Barney Frank, Nancy Pelosi, Maxine Waters and Charles Rangel.
If we are going to talk about "the policies that created this mess in the first place," let's at least get the facts straight and the names right.
The current policies of the Obama administration are a continuation of the same reckless policies that brought on the current economic problems-- all in the name of "change." Fannie Mae and Freddie Mac are still sacred cows in Washington, even though they have already required the biggest bailouts of all.
Why? Because they allow politicians to direct vast sums of money where it will do politicians the most good, either personally or in terms of buying votes in the next election.
LAlalalala, we’re not listening...
Besides, Sowell’s not authentically black...
</ leftvoice>
Sowell misses the mark. Regulations were required when banks were allowed to gamble with taxpayer funds when they repealed Glass Stegall and allowed unlimited leverage. The regulators also failed to properly police Freddy and Fanny.
Well written as always and the scary thing is he didn’t even bring up the unions and how they too help Democrats benefit from bail out money.
BUMP!
Good to see you, Sarge, it’s been awhile.
Democrats controlled both houses of Congress before Barack Obama became president. The deficit he inherited was created by the Congressional Democrats, including Senator Barack Obama, who did absolutely nothing to oppose the runaway spending. He was one of the biggest of the big spenders.
What a shame that none of the elected Republicans seem capable of making this simple point coherently when being interviewed by the LeftStream Media.
It is clear to any thinking, reading American that the Congress is in charge of spending and budgets. Why they buy the lie that the President is in charge baffles me? Been saying that for years now.
So far as housing markets, I think some people can handle “no money down and/or adjustable rate mortgages.” I don’t think those instruments should be unavailable to those who demonstrate they have the resources to handle them.
For those who can’t afford what they are trying to buy or who don’t have the history of paying their debts, then any lending institution should be free to deny them loans.
How do you guarantee that an institution isn’t discriminating against certain races or income levels?
Simple answer: a free market. With other lenders competing down the street, it should be easy for a borrower to simply go to the next lender and get the loan. The discriminatory company loses legitimate business and the other company gains it.
Hangin’ In there, FRiend! :-)
Well said...Get the government out of business and let the free market govern it, capitalism works.
Sowell is great.
Thanks for the ping to another right on the mark Dr. Sowell article. I’ll be passing this one on as usual to my email list.
You answered your own question, FRiend.
"Five percent of people think. Ten percent of people think they think. Eighty-five percent of people would rather die than think."---Thomas A. Edison
I agree. Also, there is no “right to own a house.”
There is a “right to pursue happiness.” If you can’t afford the house, then home ownership isn’t yet a ripe dream for you.
I’d suggest saving up the down payment.
bttt
Obama boldly proclaims, “The buck stops here!” But he acts as if the buck stopped with George W. Bush.
Bookmark.
oh yeah, we’re listening... and i don’t care what color Sowell is... He is smart and has guts!
What a shame that none of the elected Republicans seem capable of making this simple point coherently when being interviewed by the LeftStream Media.
yea , I still don’t get it . I can defend the GOP better than professional politicians and lawyers seem to be able to do .What’s with that /? They never counter any of the trash talk the left throws out there. AMAZING
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