Reagan vs. Obama

“The worst crisis since the Great Depression.” – Barack Obama

How did we come out of the Great Depression during the 1930’s? Some argue it was the New Deal implemented by FDR. I’ll tell you that wasn’t the case and that the actions taken, actually made the economy worse. Seven years into the New Deal, unemployment sky-rocketed over 20%. Henry Morganthau, Roosevelt’s Treasury Secretary, stated the following-

“We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong . . . somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. . . I say after eight years of this Administration we have just as much unemployment as when we started. . . And an enormous debt to boot.”

We made it out of the Great Depression despite the New Deal. In the late 1930’s, before we entered World War II, we were selling mounds of weapons to other countries; guns, planes, tanks, etc. . American people went to work and were paid for creating these goods because of the wars in other theatres. These were not “New Deal” jobs, they were private sector jobs. When the government tries to create jobs, as the New Deal did, it hinders the private sectors ability to generate and sustain jobs.

As suffocating as the credit crisis is today, it’s not the worst since the Great Depression (another scare tactic from our President). Ronald Reagan was elected President in 1980 when this country was economically worse off than it is today. Unemployment was 10.7%, as opposed to 7.2%,. inflation was 14.76%, as opposed to .03% and interest rates were over 20%, as opposed to 5%.

FDR and Barack Obama (Obama on a MUCH LARGER scale) did the opposite of what Ronald Reagan did. Reagan cut the income tax for the top bracket from 70% to 28%. He passed the Economic Recovery Tax Act of 1981, which provided the largest tax cuts ever enacted. Many economists call this “Trickle-down economics.” The more money a restaurant owner has, the more willing he’ll be to open a new restaurant…creating more jobs. He also decreased non-defense government spending during his two terms. The net job increase was 16 million jobs while inflation and interest rates dramatically decreased. With the decrease in taxes and government spending, revenue to the government increased! Reaganomics.

So far we’ve established the New Deal (increased government spending and increased government intervention) failed and Reaganomics (decrease government spending and decreased government intervention) succeeded. Unfortunately we haven’t learned from past successes and past failures. Our government has decided to spend more money than it ever has in the history of our country, without proof it will work, and has taken direct ownership in private companies. Obama disagrees with “Trickle-down economics”. If he disagrees with “Trickle down” please explain what giving billions of dollars to banks to have them provide credit to people represents. That’s trickling down through corrupt companies on Wall Street after being siphoned off by government bureaucracy! If fifty cents out of every dollar would have made it from the top of the private sector to the bottom, you can bet we’ll be lucky to get a nickel down through the money grabbing filter of the federal government.

Two different philosophies. The American way…or the government way. What would Ronald Reagan do if he were President today? You decide.

King Porkulus

The invisible hand of government has been replaced by the iron fist of control. The free market has been replaced by wealth distribution and socialist democracy in which the government dominates the economy because that is apparently what the American people want. Private sector priorities are now dictated by the government and now pay to private sector employees is controlled by the government.

Where do we draw the line? Where is the end of the line? What is the end-game in the now prevalent question in the greater public thinking that asks; what can the government do for me? Soon, your kids won’t be deciding where to school, instead they’ll be waiting for the government to tell them. When you have a President saying “there will be a time for profits and a time to make bonuses, now is not that time.” Can you believe this? I can’t believe the President of the United States of America would say such a thing. When the government acts it’s never greed, it’s compassion. When private enterprise act, it’s greed. Greed is good in private enterprise! Greed is what produces profit and jobs.

This country has a $53 trillion obligation in unfunded Social Security, Medicare, Medicaid, VA, the Shift program, etc. $53 trillion we’re passing to people that haven’t been born! This number is going up every year. If you nationalize every dime in this country it won’t pay for this…the economy today is $14 trillion! Did the private sector drive up this $53 trillion debt?

"So then you get the argument, 'well, this is not a stimulus bill, this is a spending bill.' What do you think a stimulus is? That's the whole point," Obama said.

When has this way of thinking ever worked for the government? Democrats are trying to capitalize on fearful Americans, made more fearful by our leaders. Obama said it would be a “catastrophe” for American’s if this stimulus plan doesn’t pass immediately. He also said the situation today is worse than the depression. Joe Biden compared this economic crisis to 9/11.

Why?

So they can jam through a $1 trillion stimulus package…that won’t stimulate a thing! Fearful American’s will do anything for a “better tomorrow” but have lost sight of the expense since it is difficult to realistically comprehend the amount of money that “billions” and “trillions” represents.

Currently on the table for Obama’s stimulus plan-

$50 million for the National Endowment for the Arts
$380 million in the Senate bill for the Women, Infants and Children program
$300 million for grants to combat violence against women
$2 billion for federal child-care block grants
$6 billion for university building projects
$15 billion for boosting Pell Grant college scholarships
$4 billion for job-training programs, including
$1.2 billion for “youths” up to the age of 24
$1 billion for community-development block grants
$4.2 billion for “neighborhood stabilization activities”
$650 million for digital-TV coupons;
$90 million to educate “vulnerable populations”
$15 billion for business-loss carry-backs
$145 billion for “Making Work Pay” tax credits
$83 billion for the earned income credit
$150 million for the Smithsonian
$34 million to renovate the Department of Commerce headquarters
$500 million for improvement projects for National Institutes of Health facilities
$44 million for repairs to Department of Agriculture headquarters
$350 million for Agriculture Department computers
$88 million to help move the Public Health Service into a new building
$448 million for constructing a new Homeland Security Department headquarters
$600 million to convert the federal auto fleet to hybrids
$450 million for NASA (carve-out for “climate-research missions”)
$600 million for NOAA (carve-out for “climate modeling”)
$1 billion for the Census Bureau
$89 billion for Medicaid
$30 billion for COBRA insurance extension
$36 billion for expanded unemployment benefits
$20 billion for food stamps
$4.5 billion for U.S. Army Corps of Engineers
$850 million for Amtrak
$87 million for a polar ice breaking ship
$1.7 billion for the National Park System
$55 million for Historic Preservation Fund
$7.6 billion for “rural community advancement programs”
$150 million for agricultural-commodity purchases
$150 million for “producers of livestock, honeybees, and farm-raised fish”

For all you liberals out there, explain to me how this is a “stimulus package”. By spending $87 million for a polar ice breaking ship we’re creating jobs right? There’s a crew on the boat, there’s the captain. (What happened to global warming?) The examples above don’t scratch the surface. Billions of dollars will be given to states to dole out as they see fit. States like California, where the Jerkinator and his posse have made so many poor decisions that they have driven the state into budgetary black hole. States like South Dakota and Wisconsin will be paying for irresponsible choices made by states like California.

But hey, let’s redistribute wealth! How much is $1 trillion? Senator McConnel (R) said it right, “if you spent $1 million PER DAY since the day Jesus was born you wouldn’t have spent a trillion dollars!”

While we’re redistributing wealth and deciding salaries for pirvate sector employees- actors make way too much money, we should cap their pay too…uhhh…let’s say $120,000 (George Clooney will be limited to $80,000 since I can’t stand him). Sounds reasonable. Also, there are too many American’s that drive a nicer car than I do. Obviously not fair, so let’s put a cap on how much someone can spend for a car. $15,000 sound reasonable to you? A lot of employees for the federal government only have a 4 day work week, completely not fair, I’m doing it too! Don’t get me started with professional athletes or lawyers.

Where in the United States Constitution does it allow the President to be King? Where in the United States Constitution does it empower the government to bail out private enterprise?

What do the liberals think? Do agree with the increasing power of the government?

Call and tell your senator no to the stimulus bill- (202) 224-3121.