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alstry (35.76)

Are Economists Racists or Idiots?

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July 26, 2009 – Comments (19)

Scott Grannis is a well known economist and blogger at www.scottgrannis.blogspot.com.

On his blog this morning he posts the following:

The accelerating decline in Obama's approval rating, as calculated by polling done by Rasmussen and summarized in my chart here, is big news. The recent decline was likely driven by negative reaction to his prime-time news conference on ObamaCare. Negative feelings towards Obama are rising rapidly: the number who strongly disapprove of his performance has risen from 15% to now 40% in just six months.
 

This is big news for markets, since it means that passing his legislative agenda will be increasingly difficult. As a supply-sider and libertarian, I think big government, higher taxes, and rising regulatory burdens are bad for the economy and the market. And with Obama's true agenda now completely out of the closet (he's the biggest of the big spenders and tax hikers this country has seen since FDR), bad news for his agenda is very welcome news for the market.

http://scottgrannis.blogspot.com/2009/07/obamas-approval-rating-goes-negative-3.html

You hear this type of BS from many economists....not just Scott.

As many of you know, Alstry is no fan of BIG government. Actually Alstry can't stand big government.  Nothing equals the innovation and enterprising nature of the private American citizen when given the opportunity.

But to say Obama is "the biggest of the big spenders" is a flat out lie or a blatent representation of one's ignorance.  Under President Bush, government DOUBLED in size at a time when trillions of extra tax dollars were flowing in from the credit bubble.  Instead of balancing the budget AND REDUCING THE DEFICIT when it would have been easy, government put the pedal to the metal...spending exploded under Bush and so did our debt(the growth in the accumulated deficit under Bush equaled the entire deficit of the past few hundred years).

Obama inherited the largest deficit in human history.  It was there the day he walked into office.  In fairness, a deficit which he rode along with as Senator.  A deficit so massive we are all burdened with based on the excesses of the past 10 years. 

Too bad we didn't pay off our debt when we could under Bush...now we can't, the money has run out, it is time to restructure...and if Obama does not address this issue, the consequences will be severe.

Anything else is simply extend and pretend.  It is time to put it to an end before the masses can no longer bend.

19 Comments – Post Your Own

#1) On July 26, 2009 at 1:03 PM, whereaminow (70.26) wrote:

I agree. In all of my posts, I have never once blamed Obama for the shape we are in.  I think that Obama is making it worse, that McCain offered no real alternative, and I find it all very amusing (if you can't laugh at it all, you're just not trying). But GWB is still the King of Bad Presidency... until Obama invades another nation.  Then we'll have a new champion.

David in Qatar 

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#2) On July 26, 2009 at 1:09 PM, checklist34 (99.79) wrote:

i don't know how crying racism here makes a whole lot of sense, but, yes, bush and obama share many of the same sins as leaders.

bush was not, nor hardly, the super conservative guy he was sometimes portrayed as

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#3) On July 26, 2009 at 1:12 PM, alstry (35.76) wrote:

David,

You are right.

The question about Obama is still open as it has been less than a year since he assumed the CEO position.  But quite frankly, the problems are so massive that radical change will need to be implemented.  A change we can believe in.....and a change that few are prepared to accept. 

What America needs is freedom.  Freedom drives innovation and productivity and is the essence of the American spirit.

Our nation is a slave to debt and debt related instruments manufactured and imposed upon us by the banking system and encouraged by our policitical leaders by either ommission and/or commission.  It is time to put an end to it....,.or it will put an end to us.

 

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#4) On July 26, 2009 at 1:13 PM, alstry (35.76) wrote:

check,

So I guess you take the latter of the two choices?.

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#5) On July 26, 2009 at 1:33 PM, cthomas1017 (38.79) wrote:

True, Alstry, but you missed the mark.  Bush took 8 years to do his increases.  We aren't even at the 6 month mark for Obama.  Exprapolate the Obama spending trend and listen to his words.  Frightening.  The end-game for all of this debt and spending is inflation, and walking that fine line before stepping into hyper...

 You know all this.  Why am I preaching back at the master of hyperinflationary warnings and alstrynomics?  Please don't tell me that you're softening around the edges.  0909 is upon us.  hedging?  I think not.  ;) :o

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#6) On July 26, 2009 at 1:39 PM, checklist34 (99.79) wrote:

alstry, the latter of the two choices for president?  I'd take neither, and in fact the only president or leadership that would truly be able to claim my support would be one that aimed at stopping the opression of hard working people to benefit those who wont' or cant even take care of themselves.

I'm anti-socialism, anti-welfare, anti-anti-business (so, if you prefer, pro-business, but pro-small business, pro-innovation, pro-entrepreneurialism, not pro-50B companies), I'm anti bigotry (including the legal affirmative action kind) and feel everybody should get the same chance, not the same outcome, i'm anti-environmentalist to an extent (certainly anti-global warming because its BS, and also anti-the opposing of using our vast national resources).  

I'm pro the outlook of the founding fathers, con the massive shift since FDR.

 

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#7) On July 26, 2009 at 1:42 PM, AdirondackFund (< 20) wrote:

The issue of Healthcare to Government is the very same issue as downsizing is to U.S. Corporations.  When you can't grow revenues, you must cut expenses in order to survive. 

If you leave your computer screen for an evening and go out on a Friday night, you will notice that we are being over Policed, and in fact harrassed, by Government employees who have a need to justify their existence and raise cash.  They do this in a very entreprenerial way by seeking out Crime and if they cannot find Crime, they create some of their own, just as happened in Cambridge, Oakland, and New Orleans.  Last Friday night I witnessed 17 passes of 2 COP Cars as they were surveilling 3 people who were minding their own business, closing the Restaurant at 3 AM. There was no one else in Town at that hour.

We really need a National Academy on par with West Point, Annapolis, Colorado Springs, and New London for the training and education of our Police.  It seems they have absolutely no respect for the U.S. Constitution and until they can figure out how to be Police without breaking the Social Compact, then we are wasting every past and current dime in employing them in the first instance.  This is a system that is clearly not working.  

Perhaps some have noticed that we also have a Policing problem at the FED, with the SEC (cf Bernie Madoff), with Goldman Sachs, and with Freddie and Fannie.  All of these incidents have been allowed to occur simply because our Police have been asleep at the wheel.  It is their job to enforce Law and Regulation, not to take payoffs, look the other way, and then go harrass a small businessman at 3 AM.  The Government has made of itself....an Enemy of The People.    

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#8) On July 26, 2009 at 1:55 PM, Deepfryer (28.26) wrote:

Agree 100% with the original post.

AdirondackFund: It's too bad our officials can't figure out where the police are most needed. Some cities are crawling with cops who do more harm than good... but then there are cities like Hartford, CT where violent crime runs rampant, and the perpetrators usually get away with it. It's gotten so bad that no one even seems to care anymore. Report this comment
#9) On July 26, 2009 at 2:08 PM, AdirondackFund (< 20) wrote:

 @ deepfryer

 

Hartford, New Orleans, Oakland, yada, yada, yada all need Police Reform in order to survive as communities.  Many people simply won't go out at night because of all of the problems.  The Obama Administration understands that a multipronged approach is the right one.  One which includes the banning of dangerous pharmaceutical drugs which have now morphed into recreational drugs at an alarming rate (cf. Michael Jackson's death at the hands of the Doctors).  The problem is widespread and easy to solve.  All it takes is a new set of marching orders.  This would be best accomplished within the framework of a National Academy where the best ideas can be debated within the context of a vibrant and active U.S. Constitution.

The COP in Cambridge clearly sought to 'bait' a Black Man.  He entered a house without permission.  This is in violation of the U.S. Constitution pure and simple.  We are no longer safe in our own homes and businesses.

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#10) On July 26, 2009 at 2:52 PM, Varchild2008 (84.41) wrote:

President Obama more than doubled President Bush's deficit and you can not possibly claim that President Bush's deficit was worse.  Much of the money coming into the Federal Government had nothing to do with the so called "Credit Bubble," but due to the tax cuts.  Tax cuts generate job growth and business growth.

Alstry is trying to say that you can not credit President Bush 1 single penny for any of the increase in Government Revenues.... You can only credit President Bush for the deficit.  That is misleading analysis.

President Obama's $787 billion Economic Recovery Act alone was well more than the less than $500 billion dollar deficit President Bush had.  Then toss in the Belly Busting Budget and you have well over a Trillion Dollars.... That's humongous in comparison to President Bush.

If you take the year 2008 out of the equation then what you have is a Government Deficit that was reducing in size from 2003 - 2007.   The credit bubble burst and President Bush started spending like a drunken sailor, but come on?

Much of the Mortgage problems that created the bubble happened well before President Bush ever ran for President. 

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#11) On July 26, 2009 at 2:58 PM, Varchild2008 (84.41) wrote:

P.S. http://www.optimist123.com/optimist/2007/10/deficit-watch-e.html

Just something I quickly BINGed....  This shows that without the Economic Recession + Credit Bubble disaster we would have seen a Balanced Budget in early 2009.

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#12) On July 26, 2009 at 3:08 PM, awallejr (80.15) wrote:

As a general rule, it isn't fair to base the country's economic condition during the first year of a new President on that new President since it is still acting on the carryover of the previous year.  So I reserve judgment on that issue until 2010.

I am concerned that Obama is trying to do too much too soon. The primary focus really should be getting the economy back on its feet, creating jobs as soon as possible and getting the budget under control imo.

We can't undo the past.  It happened.  We can't undo Congress and Clinton's changing of Glass-Steagall Act back in 1999.  Or the change of the leverage rate.

So far, however, I am not enthralled with what is going on by ALL on Capital Hill.

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#13) On July 26, 2009 at 3:23 PM, awallejr (80.15) wrote:

Varchild the problem with that chart is it is being based on a destined bubble.  The real estate bubble WAS destined to happen.  It HAD to happen.  Once shadow banks were allowed in the game in 1999 it was just a matter of time before the implosion. They took a healthy, slow but steady real estate market and securitized the hell out of it and churned it as far and as long as they could.  Then once they reached the eventual limit (quickened by Bernanke's raising of the FED rate), things crashed and now the excess had and still has to be absorbed. 

Alot of jobs were created around that excess.  Alot of business worldwide grew because of that excess.  Now that excess has to be drawn down, hence your unemployment and negative GDP.  How long a process this will take I certainly don't know.  But it won't be overnight. 

Ironic that Glass-Steagall came in as a result of the 1929 crash, and then when we took it away we eventually got the 2008/2009 crash.

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#14) On July 26, 2009 at 4:53 PM, RonChapmanJr (98.43) wrote:

Obama's 2010 budget and projections show he is the biggest of the big spenders.  The only question is whether all that deficit spending will help or hurt the country.

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#15) On July 26, 2009 at 6:20 PM, alstry (35.76) wrote:

Alstry is trying to say that you can not credit President Bush 1 single penny for any of the increase in Government Revenues.... You can only credit President Bush for the deficit.  That is misleading analysis.

Var,

The analysis is spending more than you earn....it doesn't matter how much you bring in......deficits are created by spending more than your receipts.....and nobody did it better than Bush/Pelosi era.

Ron...

Current defcit is a product of the previous administration....if Obama doesn't cut going forward....we will be facing serious consequences based on evaporating revenues.

Time will tell.....the jury is still out.

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#16) On July 26, 2009 at 7:31 PM, DownEscalator (< 20) wrote:

This is a historical problem going back to the JF Kennedy days.  Every administration since then has had SOME part in causing our burden to be greater today, even the golden man around here, Ronald Reagan.  If you cut the revenue base while cutting obligations less, you're just as bad as someone who spends a little more.  Every administration and Congress is culpable in this. Every single one.  This is a CULTURAL problem, not a political one.

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#17) On July 26, 2009 at 7:46 PM, davejh23 (< 20) wrote:

Are economists racist?  I really hope you're not one that supposes that all Obama opposition is due to racism.  I have several black friends, some of which attended Obama's inaguration because they were excited to see a black president, that despise everything that Obama is trying to do.  You know this isn't about race.  I agree that Bush wasn't a great leader either, but to pin this all on Bush is pure idiocy.  Bush presented reforms that could have prevented, or at least lessened the effects of the housing bubble, and he was publicly ridiculed by members of congress.  Congress is more to blame than any individual president...and our current congress is willing to do just about anything that Obama suggests...so Obama will be more to blame individually than any president we've seen for a long time.  Obama will quadruple Bush's record deficit in one year, and is pushing legislation that could lead to further increases deficit spending in his first term...on the back of a promise to cut the deficit in half in his first term, and as a first priority, cut all pork from the budget with a scalpel.  He inherited a mess, but he is not helping, and will certainly not deliver on his campaign promise.

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#18) On July 26, 2009 at 8:46 PM, jmessner (< 20) wrote:

Well said davejh23.  Another problem I have with this article is that it seems like every time someone criticizes Obama, one of his supporters gives the "Bush was worse" excuse.  It is possible to have a problem with the radical things this guy is doing now and not be a Bush fan.

The whole Congress being completely on his side scares me too.  It seems like whenever he proposes something everyones afraid to vote against it because they want to ride his popularity.  God I hate politicians.

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#19) On July 26, 2009 at 8:57 PM, Effloresce (95.68) wrote:

This is a historical problem going back to the JF Kennedy days.  Every administration since then has had SOME part in causing our burden to be greater today, even the golden man around here, Ronald Reagan.  If you cut the revenue base while cutting obligations less, you're just as bad as someone who spends a little more.  Every administration and Congress is culpable in this. Every single one.  This is a CULTURAL problem, not a political one.

 

Kudos. I agree completely. You can't pin this on any one person. It's all of them (and all of us). It's an American thing, fueled by ever more expansive and ever more intrusive government, a nanny government here to watch over and 'take care' of us all. Comforting, eh? Not so much.... 

We can do the whole partisan thing and point the finger at this guy or that guy or Congress or whomever, but the reality is that we are the ones who keep putting these people into office and returning them there. And further, we encourage them to pander to our basest instincts. Do you think someone could be elected to office if he or she told the truth, was entirely honest and told people "Look, we have got a BIG problem here, and there is no solution but for raising taxes and cutting back on social services"? Of course that person wouldn't get elected, in fact they'd be slaughtered at the ballot box.

Somehow we've come to believe that we can have our cake and eat it too, and that we're entitled to that by virtue of being Americans. We expect to feel no pain. New taxes? What, are you nuts? Cutting back on social services and other government programs? Why that's just crazy talk! The fact is that it takes continued hard work and it takes sacrifice in order to maintain greatness, but we seem to have lost that point somewhere along the line- and we are seeing exactly where this mentality has led us. When is the last time an American President has actually asked us to make a personal sacrifice? I would love to see another JFK issue that ringing call to service and sacrifice "And so, my fellow Americans: ask not what your country can do for you - ask what you can do for your country."  Don't be selfish and thinking only of yourself. Think of your children, your childrens children, the future, and of America, this country which has given us so much.

Each generation is charged with the responsibility of passing down this country to the following generation in a little better state than the one in which they found it, however we are failing in that task completely, and are just screwing over our children and future generations nine ways to Sunday, while we've lived high on the hog and partied it up, and politicians have kowtowed to our every whim and pandered to all our pet programs and special interests. To blame the politicians, we may as well just look in the mirror, because they are us.  

 

 

 

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