Skip to comments.Does President Obama Understand Economics?
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 ...
You beat me...
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.
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.
This affirmative action empty suit has one of the shallowest internal libraries of usefull knowledge of any CEO in modern history, IMO.
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.
No Democrat understands economics. If they did, they would not be Democrats.
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.
On the same note, what do you think about Bernackes statement yesterday that the Federal Reserve isnt printing money? The cash has to come from someplace, so if the Fed isnt printing it, just where is it coming from??
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.
That’s about what i though was going on. It’s all about virtual balance sheets and electronic transfers.
In China, where all the flat-screen TVs that people will be buying are made.
Obama understands economics just fine. The error is in assuming that economic prosperity is his goal.
BINGO!! You nailed it.
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.
He does not know. He does not care.
Only in the sense of “From each according to his ability, to each according to his need.”
Obama understands global communistic change only with class,race, warfare to usher it in.
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?