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Obama's Economic Model Is a Failure
Real Clear Politics ^ | June 2, 2012 | Larry Kudlow

Posted on 06/02/2012 3:52:01 PM PDT by Innovative

The Keynesian government-spending model has proven a complete failure. It's the Obama model. And it has produced such an anemic recovery that, frankly, at 2 percent growth, we're back on the front end of a potential recession. If anything goes wrong -- like another blow-up in Europe -- there's no safety margin to stop a new recession.

And that brings us to the grim May employment report, which generated only 69,000 nonfarm payrolls. It's the third consecutive subpar tally, replete with downward revisions for the two prior months. It's a devastating number for the American economy and a catastrophic number for Obama's re-election hopes. All momentum on jobs and the economy has evaporated.

Barack Obama doesn't get this, but businesses create jobs. And firms have to be profitable in order to hire. Yet the president is on the campaign trail criticizing Mitt Romney by degrading the importance of profits. Huh?

Without profits, businesses can't expand. And if they don't expand, they can't hire. And if they don't have profitable rates of return, they're not going to attract new capital for investment.

....

In fact, all the countries around the world should move to the supply side with lower tax rates to spur economic-growth incentives. Europe, China and Latin America ought to go back and read Ronald Reagan's speeches and examine his actions when he faced a similar crisis 30 years ago. It would be an hour or two well spent.

(Excerpt) Read more at realclearpolitics.com ...


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: economy; elections; obama; socialism
The USA, as we know it, will not survive a second Obama-term.
1 posted on 06/02/2012 3:52:09 PM PDT by Innovative
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To: Innovative

What is O(bama)’s case?

It’s sure not the economy

http://www.nypost.com/p/news/opinion/opedcolumnists/what_is_case_G2XmxRTEFv1ieifcFmAs3O

“Every president who wins re-election has such an argument. Reagan 1984: “I’ve brought America back.” Clinton 1996: “I’ve turned the economy around while shrinking the deficit.” Bush 2004: “I’m keeping America safe.”

The presidents who don’t win a second term seem to base their campaigns on an argument against the other guy. Carter 1980: “Reagan is a madman.”

The Obama team must know that they can’t prevail solely with a negative assault on Mitt Romney, but really, what is the positive case? “


2 posted on 06/02/2012 3:58:27 PM PDT by Innovative (None are so blind that will not see.)
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To: Innovative
It's a Kenyanesian Economic Model, run by an Economic Moron.
3 posted on 06/02/2012 3:58:55 PM PDT by Paladin2
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To: Innovative

Funny, the Undocumented Kenyan thought golfing, vacations, gay marriage, undoing DOMA, undoing DADT, cheeseburgers and Food Nazism would FIX the American economy.

Gee, what went wrong?


4 posted on 06/02/2012 4:02:38 PM PDT by F15Eagle (1 John 5:4-5, 4:15, 5:13; John 3:17-18, 6:69, 11:25, 14:6, 20:31; Rom10:8-11; 1 Tim 2:5; Titus 3:4-5)
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To: Innovative
The Keynesian government-spending model has proven a complete failure.

Absolutely, however it will still never go away!

5 posted on 06/02/2012 4:03:00 PM PDT by EGPWS (Trust in God, question everyone else)
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To: Innovative

Why do they keep misspelling Kenyan?


6 posted on 06/02/2012 4:03:09 PM PDT by Red_Devil 232 (VietVet - USMC All Ready On The Right? All Ready On The Left? All Ready On The Firing Line!)
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To: Innovative

If a country has a balanced budget it can get a short term stimulus out of borrowing to fund make work projects. But when you already owe trillions you cannot get a bounce by sucking another trillion dollars out of the private economy in order to pass it through the bureaucrats and put it back into the private economy. Deficit spending has already used up any stimulus effect you might have otherwise obtained. Borrowing money to fund a “stimulus project” is just like trying to fill the pool by dipping water out of the deep end and pouring it into the shallow end.


7 posted on 06/02/2012 4:05:51 PM PDT by csmusaret (I will give Obama credit for one thing- he is living proof that familiarity breeds contempt.)
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To: Innovative

I love Kudlow’s Sat. radio show. 10 AM-1 PM on WABC. He has a lot of great guests. Very worthwhile.


8 posted on 06/02/2012 4:10:00 PM PDT by randita
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To: Innovative

9 posted on 06/02/2012 4:10:30 PM PDT by FormerACLUmember
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To: Innovative
The Keynesian government-spending model has proven a complete failure. It's the Obama model.

The libtards don't care. They will never give up a model that is compatible with statism.

10 posted on 06/02/2012 4:16:41 PM PDT by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: Innovative
the boy isn't smart enough to understand the business model of a lemonade stand...
11 posted on 06/02/2012 4:17:42 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: Red_Devil 232

Touche.


12 posted on 06/02/2012 4:36:01 PM PDT by C. Edmund Wright
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To: randita

I normally like Kudlow, and I like his CNBC show 7 ET. But, he was a big Liz Warren fan back in the day....like 09. Tsk tsk Larry.


13 posted on 06/02/2012 4:38:09 PM PDT by C. Edmund Wright
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To: Chode
If Obie gets reelected he goes full Mugabe on US. That is Barry's model and he knows full well what he is doing.
14 posted on 06/02/2012 4:39:48 PM PDT by gov_bean_ counter ( A good measure, pressed down, shaken together and running over...)
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To: Innovative

15 posted on 06/02/2012 4:51:47 PM PDT by rawcatslyentist ("Behold, I am against you, O arrogant one," Jeremiah 50:31)
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To: FormerACLUmember

Great chart. Its author should also add the Heritage Foundation’s “Index of Economic Freedom.” It isn’t a pretty picture on the communist’s watch...it’s degraded 100% from what he “inherited” from Bush!

‘12 ‘11 ‘10 ‘09 ‘08 ‘07 ‘06 ‘05
10 9 8 6 5 6 5 5


16 posted on 06/02/2012 4:55:36 PM PDT by ProtectOurFreedom
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To: gov_bean_ counter
pretty much...
17 posted on 06/02/2012 4:56:18 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: rawcatslyentist

“...is a failure.”

My only comment: NSS...no sh** sherlock


18 posted on 06/02/2012 4:57:17 PM PDT by hal ogen (First Amendment or Reeducation Camp?)
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To: Innovative
The USA, as we know it, will not survive a second Obama-term.

It sure won't!



Where there's a shell, there's a way.

25 years ago, we had Ronald Reagan, Johnny Cash, and Bob Hope.
Today we have Obama, no cash, and no hope!

If you can't appreciate the pure beauty of the violin after hearing this, something's wrong with your ears.

Or you can get raw with these strings.

How about this gamechanger from America's Got Talent (which they SHOULD have won).

Either way, the violin is sweet yet lethal.

Do it!

19 posted on 06/02/2012 6:11:23 PM PDT by rdb3 (If you were tried in court for being a Christian, would there be enough evidence to convict you?)
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