Do I really need to provide references for all the times the Republicans and other conservatives have prophesied that Obama's economic plans would wreck the economy? I think the greater challenge would be to find a conservative who didn't make such a claim!
A quick check of the Dow Jones Industrial Average shows the DJIA has risen 27% since March. That's not bad. And as tax lawyer and bond broker Hale Steward points out, since their March lows, the Standard and Poor's index has risen about 40% and the NASDAQ has risen about 50%! He points out that these would normally be indicators of a bull market, but cautions that such is not the case, that growth will be sluggish for some time to come.
But that brings us back to the question – where's the economic train wreck that the conservatives claimed would be the sure result of Obama's economic policies? Um…it ain't there.
In every recession (or Depression) since 1900, America's economy has only recovered after significant injections of government funds…and the current recession is no different. The best example (especially for the history-challenged) is the Great Depression. In FDR's first hundred days, he subsidized price supports for farmers; took America off the gold standard; instituted Social Security (which pays for itself), the Civilian Conservation Corps (whose works can still be seen today), and the Tennessee Valley Authority (which continues to provide tens of thousands of jobs even today), and the Federal Deposit Insurance Corporation (which has provided banking stability for generations).
One of the most important acts FDR passed in his first hundred days was the Glass-Steagal Act, which created a firewall between investment banking and commercial banking. FDR's reasoning was, "There must be a strict supervision of all banking and credits and investments. There must be an end to speculation with other people's money." Somehow the conservatives think that it's wrong to have strict supervision over those bankers who hold the life savings of millions of American citizens. That's why they (with Clinton's support) repealed the Glass-Steagal Act in 1999, and look where it got us! The investment firms ran wild for several years, and then their house of cards began tumbling down in a way it never did when they were regulated under Glass-Steagal.
So is the massive amount of government stimulus used to brace up America's economy going to blow up in our faces? Possibly, but significantly increased government spending is precisely how America has recovered from EVERY recession (or Depression) since 1900. Remember what the saying was in the '82-'83 recession and the early '90s recession? "All we need is a good war!" Well, there's your proof right there — gearing up for a war economy is, in all but name, a government-spending stimulus package.
So what would happen if Obama had listened to the conservatives and had not implemented the stimulus package? Japan already knows, they tried to recover from their recession by cutting spending to the bone, and what happened? The Japanese call it their economic "Lost Decade".
So for the conservatives: where's the Obama train wreck? It ain't here! Why is the stock market doing so much better? Yes, unemployment is still bad, but just as with every other recession since 1900, improvement in unemployment always follows improvement in economy by at least a year, and often two years.
But wait — I think I see something! There is a train wreck , but the only 'O' I see on it has a 'G' on one side and 'P' on the other.Powered by Sidelines