Friday, August 27, 2010
Obama Stimulus is the Economic Equivalent of Red Bull
On some of the news commentary shows I've seen, partisan Democrats are trying to put a positive spin on the Commerce Department's downward revision of the country's 2nd quarter GDP rate. What these party hacks are basically saying is that despite the fact that the economy isn't growing as fast as they'd like, there's still growth. As such, Obama's economic policies, e.g., the $800 billion so-called "Stimulus" bill, are working.
This is utter and complete hogwash. The truth of the matter is the big recovery Team Obama assured us would occur if the "Stimulus" bill was passed has not been close to being realized. For instance, Obama's economic advisors claimed that if the "Stimulus" didn't get put into effect, the unemployment rate would surpass an unacceptable 8%. As you're no doubt aware, unemployment has been well over 9% for a while now. At best, the economy as measured by unemployment is just about where Team Obama said it would be without the "Stimulus" bill.
What economic growth that has occurred and can be attributed to Obama's "Stimulus" policies is entirely unsustainable. They are basically like Red Bull. You may get a noticeable energy boost, but it doesn't last for very long. A recent illustration of this point is the home buying tax credit which expired this past spring. Although this credit did spur some demand for homes, once it was gone so too were the home buyers. We know this by the news that previously owned home sales plummeted almost 30% from June to July.
Because of its high caffeine and sugar content, Red Bull has a negative impact on one's health when used. So too with the "Stimulus" on the financial health of the nation with respect to increased debt and the burden placed on future generations to pay it back.
The bottom line here is that when you hear or see Obama and the Dems try to put a happy face on what they have done with the economy, don't buy it. Their policies are nothing more than a short fix that have failed to account for long term consequences.