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Does President Obama Understand Economics?
Fox News ^ | December 07, 2010 | John R. Lott Jr.

Posted on 12/07/2010 6:06:56 AM PST by JohnRLott

Neither government spending nor tax cuts automatically provide an economic stimulus. But President Obama has continued to make this mistake. Take a look at much of what he insisted be included in his tax cut deal with congressional Republicans.

So what makes the economic pie bigger? There are two sides to this. The supply side: lower marginal tax rates mean the more that people get to keep from each additional dollar that they earn, the harder that they will work and the more that they will produce.

The other view, the Keynesian view, also often called "the demand side view" or "the multiplier," is that giving the money to the right people to spend which will create wealth. Democratic House Speaker Nancy Pelosi made this claim earlier this year when she advocated more unemployment insurance benefits: "it injects demand into the economy and is job creating. It creates jobs faster than almost any other initiative you can name. Because again it is money that is needed for families to survive and it is spent."

We see this line of reasoning in the proposed 13-month extension of unemployment insurance benefits to continue paying out benefits for up to 99 weeks.

It is also the basis for the president's proposed expansion of the earn income tax credit and items such as the college-tuition tax credit for relatively lower-income families. . . .

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


TOPICS: Business/Economy; Government; Politics/Elections
KEYWORDS: economics; johnlott; keynes; keynesian; obama; obamanomics; stimulus; unemployment

1 posted on 12/07/2010 6:07:00 AM PST by JohnRLott
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To: JohnRLott

rhetorical question


2 posted on 12/07/2010 6:08:15 AM PST by Happy Rain
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To: JohnRLott

I think we could fill the navel of a flea with what he understands, and STILL have room for a Hummer!!


3 posted on 12/07/2010 6:08:59 AM PST by SMARTY (Conforming to non-conformity is conforming just the same.)
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To: JohnRLott
Zer0 understands Kenyanesian Economics - the planting of Marxist economic IEDs within the US economy.
4 posted on 12/07/2010 6:09:41 AM PST by Paladin2
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To: JohnRLott

No. He’s an economic moron.

*that should be efficient enough, I’m thinking*


5 posted on 12/07/2010 6:09:52 AM PST by Daisyjane69 (Michael Reagan: "Welcome back, Dad, even if you're wearing a dress and bearing children this time)
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To: JohnRLott

He knows the golden rule.

Those with the gold make the rule.


6 posted on 12/07/2010 6:10:26 AM PST by Hang'emAll
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To: JohnRLott
Does President Obama Understand Economics?

Obviously not, but he's far too arrogant to realize how ignorant he is. He's had so many people kissing his backside and telling him he's the chosen one and can do no wrong for so long he's come to believe it. (Although I suspect he believed it long ago.)

7 posted on 12/07/2010 6:11:41 AM PST by from occupied ga (Your most dangerous enemy is your own government,)
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To: JohnRLott

I love it when the substanative questions of which the media needed to ask and report, become actionable and newsworthy two years after the election.


8 posted on 12/07/2010 6:11:57 AM PST by blackdog
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To: JohnRLott

If the total amount of his understanding and knowledge of economics where shoved up the rear end of an ant it would roll around like a B-B in a box car.


9 posted on 12/07/2010 6:12:21 AM PST by gdzla
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To: JohnRLott
IF it's Marxist or Union-Thug economics, he understands it.

Otherwise, he doesn't know JACK SH*T.

10 posted on 12/07/2010 6:14:18 AM PST by DocH (Official Right-Wing Extremist Veteran Seal Of Approval)
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To: Hang'emAll
Those with the gold make the rule.

Yeah, like Gold-man-Sachs......

11 posted on 12/07/2010 6:14:54 AM PST by Thermalseeker (Stop the insanity - Flush Congress!)
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To: JohnRLott

Good read this morning John, and I like your explanation about changing who is spending the money as opposed to really stimulating the economy.

On the same note, what do you think about Bernacke’s statement yesterday that the Federal Reserve isn’t printing money? The cash has to come from someplace, so if the Fed isn’t printing it, just where is it coming from??

Kippis!


12 posted on 12/07/2010 6:15:02 AM PST by Bean Counter (Stout Hearts...)
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To: Paladin2
YouTube - Is Obama a Keynesian?

(stupid libs: "NO! He was born in Hawaii!")

13 posted on 12/07/2010 6:17:26 AM PST by MrB (The difference between a (de)humanist and a Satanist is that the latter knows who he's working for.)
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To: JohnRLott

I’m watching RAT liars on TV and they keep repeating that either they or wealthy people that they know didn’t want a tax break and that they could afford to pay more taxes.

EVERY SINGLE TIME THEY REPEAT THAT BALONEY, THE RESPONSE SHOULD BE: “OK, JUST CUT A CHECK TO THE US TREASURY FOR WHAT YOU THINK YOU SHOULD BE PAYING! DON’T TAKE THE LOWER RATE! PAY MORE! NO ONE IF FORCING YOU TO KEEP THE MONEY!”


14 posted on 12/07/2010 6:19:04 AM PST by MrDem (Founder: Democrats for Cheney/Palin 2012)
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To: JohnRLott

Obama understands economics just fine. The error is in assuming that economic prosperity is his goal.


15 posted on 12/07/2010 6:19:18 AM PST by Sloth (TSA: Because 10,000,000 sexual assaults per year is justified to *possibly* prevent 300 murders.)
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To: JohnRLott
NO, but his controllers do and their plan is to use it against us.

0 is just the face of the machine.

16 posted on 12/07/2010 6:19:18 AM PST by Only1choice____Freedom (FDR had the New Deal. President 0bama has the Raw Deal.)
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To: JohnRLott
It would be interesting for him to explaining what he does understand so we could get some clues to understand him.
17 posted on 12/07/2010 6:19:18 AM PST by mountainlion (concerned conservative.)
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To: JohnRLott
To quote Ronald Reagan...

“The problem with liberals is not that they are ignorant, it is that so much of what they know isn't so.”

If by “understand the economy” you mean, “studied socialist dogma” - well then yes 0bama is well versed.

18 posted on 12/07/2010 6:20:53 AM PST by allmendream (Tea Party did not send the GOP to D.C. to negotiate the terms of our surrender to socialism.)
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To: JohnRLott

It’s been made abundantly clear over the past two years that Obama doesn’t understand anything, and in future will be very lucky to hold down the job of men’s room attendant at a mid-level hotel washroom.


19 posted on 12/07/2010 6:25:35 AM PST by Jack Hammer
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To: JohnRLott

Obama...doesn’t care about the “rules” that make America.

Everybody-right and left, keeps being presumptious about what he will do, should do or could do.

His very strength politically, is his disregard of the traditions of American politics. His opponents call him “dumb” and “Obozo” because of his apparent lack of knowledge and understanding of American political tradition.

Truth be told..because he is so ignorant and disregarding of American political tradition, he is very, very dangerous. He demonstrates a studied disregard of convention and tradition that the Rinicratic Oligarchy can’t see or won’t admit to. Consequently he is beyond their control.

In this he demonstrates his true roots as a Marxist/Leninist..which the leading American Political Elite are incapable of identifying, let alone deal with intelligently and constructively.

He has ammassed, so far, more power to DC than the combination of Lincoln, Wilson, FDR and Johnson-at considerable expense to Flyover Country.


20 posted on 12/07/2010 6:29:24 AM PST by mo
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To: Happy Rain

“rhetorical question”

You beat me...


21 posted on 12/07/2010 6:35:16 AM PST by SumProVita (Cogito, ergo...Sum Pro Vita. (Modified Decartes))
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To: JohnRLott
the boy's not smart enough to understand the business model of a lemonade stand...
22 posted on 12/07/2010 6:39:16 AM PST by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: JohnRLott

Democrats like to use Keynes as their reasoning behind their actions but they are lying. It’s actually Marx who is their idol and their allegiance is to their party and their power, not the Republic. We live in a sad country when there are enough fools to elect these parasites into office.


23 posted on 12/07/2010 6:41:52 AM PST by rbosque (12 year Freeper!!! Combat Economist.)
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To: JohnRLott

Does anybody ever propose solutions other than “either/or”? For instance why not structure unemployment insurance so that it is steady for a certain amount of time. Then, when that time has elapsed it starts to go down by X amount every two or three months so that the person realizes it is running down like “sands through the hourglass.” That way they can both adjust to the gradual decrease of income and get motivated to get something going. It would then be possible for them to know for SURE the zero date looming before them.


24 posted on 12/07/2010 6:43:51 AM PST by Anima Mundi (If you try to fail and you succeed , what have you just done?)
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To: JohnRLott

This affirmative action empty suit has one of the shallowest internal libraries of usefull knowledge of any CEO in modern history, IMO.


25 posted on 12/07/2010 6:49:50 AM PST by Nonstatist
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To: Nonstatist

nobama understands his family’s economics. he and his grifter family are set for life at our expense. nobama hates America. His family is replete with America-loathers.


26 posted on 12/07/2010 6:54:58 AM PST by hal ogen (1st Amendment or Reeducation Camp?)
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To: JohnRLott

No Democrat understands economics. If they did, they would not be Democrats.


27 posted on 12/07/2010 6:58:09 AM PST by chuckee
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To: JohnRLott
http://www.youtube.com/watch?v=suVB3YGIUk0&feature=related
28 posted on 12/07/2010 6:59:36 AM PST by SkyPilot
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To: JohnRLott

I actually think this lame-duck session is the first time in his life he has ever had to seriously even try to understand supply-side economics.

Think about it:

(1) Columbia? Harvard? Their economic departments teach Kenysain as gospel, call supply-side vodoo economics, and say Marxism will work if you put the right people in charge.

(2) As a community organizer, his job was centered around govt. redistributing the wealth.

(3) As a senator he voted how he wanted. Nobody every tried to make him compromise.

(4) For the first two years as president, the Democrats had 100% control in Washington, and ignored conservatives.

Now, for the first time ever, he is in a position where he has to actually listen to, and even compromise with conservatives to get anything done. It is the first time in his life he has ever had to take seriously the other side of the economic argument.

So no, he doesn’t understand economics.


29 posted on 12/07/2010 7:06:33 AM PST by Brookhaven (Voter Fraud is Treason)
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To: Bean Counter

On the same note, what do you think about Bernacke’s statement yesterday that the Federal Reserve isn’t printing money? The cash has to come from someplace, so if the Fed isn’t printing it, just where is it coming from??


In today’s electronic age, they don’t have to physically print money.

The Fed just needs to change a database entry to say an account at the Fed has 1 billions dollars in it. The Fed then buys 1 billion dollars of T-bills by electronicly transfering money from the Fed account to the government account.

Ta-da! The Federal Reserve just put an additonal 1 billion dollars into circulation without printing anything.

Just because they aren’t printing money doesn’t mean they aren’t inflating the money supply.


30 posted on 12/07/2010 7:11:52 AM PST by Brookhaven (Voter Fraud is Treason)
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To: JohnRLott
NO, but then, most economists don't understand it either. The special cases they study are notoriously bad at recognizing feedback loops, opportunity costs, and socialized risks, all of which are significant components in transaction decisions.
31 posted on 12/07/2010 7:28:22 AM PST by Carry_Okie (The environment is too complex and too important to manage by central planning.)
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To: Brookhaven

That’s about what i though was going on. It’s all about virtual balance sheets and electronic transfers.

Thanks!


32 posted on 12/07/2010 7:28:58 AM PST by Bean Counter (Stout Hearts...)
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To: JohnRLott
It creates jobs faster than almost any other initiative you can name. ...

In China, where all the flat-screen TVs that people will be buying are made.

33 posted on 12/07/2010 7:34:39 AM PST by mvpel (Michael Pelletier)
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To: Sloth

Obama understands economics just fine. The error is in assuming that economic prosperity is his goal.


BINGO!! You nailed it.


34 posted on 12/07/2010 7:35:20 AM PST by unkus
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To: Sloth
Obama understands economics just fine. The error is in assuming that economic prosperity is his goal.

See my tagline of 2+ years.
35 posted on 12/07/2010 7:39:18 AM PST by Cheerio (Barry Hussein Soetoro-0bama=The Complete Destruction of American Capitalism)
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To: JohnRLott
In the UK the welfare state was inflated and distorted beyond reason (or its original intended function)by continued government policies of giving extra benefits in times of recession to boost the economy.

Even if it works (big if) it leads to benefits raising above lower wage limits and discourages work.

I know a guy who says that to work for less than £350 per week would leave him worse off.

36 posted on 12/07/2010 7:45:21 AM PST by vimto (To do the right thing you don't have to be intelligent - you have to be brave (Sasz))
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To: JohnRLott

He does not know. He does not care.


37 posted on 12/07/2010 7:52:55 AM PST by Georgia Girl 2
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To: JohnRLott

Only in the sense of “From each according to his ability, to each according to his need.”


38 posted on 12/07/2010 8:47:23 AM PST by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
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To: JohnRLott

Obama understands global communistic change only with class,race, warfare to usher it in.


39 posted on 12/07/2010 9:16:15 AM PST by Dubya-M-DeesWent2SyriaStupid!
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To: JohnRLott

Does Obama understand economics?

Does a pig read a Sunday school book?
Does a bear use a pay toilet?
Does a hippopotamus teach law at Harvard?


40 posted on 12/07/2010 10:12:44 AM PST by RipSawyer
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To: MrDem

Massachusetts recently rolled back the tax state income tax rate from 5.95% (Dukakis level) to 5.3%, although there was referendum making 5.0%, which the Great and General Court overrode. However, residents have the option of paying at the higher 5.95% rate and can so signify by checking a box on their returns. Can you guess which rate John Kerry chose to pay at?

Out of 3,000,000 tax payers guess how many voluntarily pay at the higher rate? Would you believe 20,000. Whose total tax liability was a few million dollars. Basically, they’re raising their average tax liability from $106 to $119, an average of about $13 increased taxes per 0.67% of the taxpayers who volunteered for the higher rates. This in a Moonbat 63% Obama state.


41 posted on 12/07/2010 10:28:06 AM PST by Lonesome in Massachussets (Socialists are to economics what circle squarers are to math; undaunted by reason or derision.)
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To: JohnRLott

No! He does not!
http://www.youtube.com/watch?v=pCQAJ5na5Z4&feature=related


42 posted on 12/07/2010 10:30:21 AM PST by csmusaret (Q: How do they say incompetent failure in Kenya? A: Barack Obama)
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To: Brookhaven

http://gregmankiw.blogspot.com/

Greg Mankiw teaches at Harvard and he makes a lot of sense, not that I always agree with him. I never disagree with him about empirical economic issues, however.


43 posted on 12/07/2010 10:35:35 AM PST by Lonesome in Massachussets (Socialists are to economics what circle squarers are to math; undaunted by reason or derision.)
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To: AdmSmith; Arthur Wildfire! March; Berosus; bigheadfred; ColdOne; Convert from ECUSA; Delacon; ...

Of course, that’s why he knew exactly how to destroy the economic life of the nation. Thanks JohnRLott.


44 posted on 12/07/2010 11:39:53 AM PST by SunkenCiv (The 2nd Amendment follows right behind the 1st because some people are hard of hearing.)
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