Making Sense of the The Obama Economy

Get ready for it. After the President’s truly historic spending spree, last year, with  the electorate turning decisively against him because of his disastrous fiscal policies, Obama will make a sharp pivot to a  deficit hawk position in his SOTU speech.  And he will of course blame “the last eight years” for the country’s financial woes.

He is hoping we all have horribly short memories:

The nation’s historic debt and record deficits are a direct result of the President’s big-spending agenda.

Debt:  The President’s spending policies have drastically increased the national debt.  Since taking office just one year ago, the President has increased the public debt by $1.47 trillion or 23 percent, from $6.3 trillion to $7.78 trillion.

Under the Administrations’ budget, public debt will triple, jumping to $17.5 trillion dollars by 2019.  Before Obama’s budget and “stimulus” were enacted, CBO estimated that the public debt in 2019 would be $9.34 trillion-or $8 trillion less than it is now projected to be under Obama. In addition, while the President prepares to tout his commitment to fiscal responsibility, he is encouraging Congress to pass a $1.9 trillion increase in the national debt limit, allowing the government to keep borrowing in order to keep on spending.  Today, the cost of the national debt is $39,870 for every woman, man, and child in the U.S.

Runaway Spending:  The record amounts of debt are a direct result of huge spending increases by the Democrats in Congress and the White House.  In one year controlling the White House and Congress, Democrats increased the annual deficit by 308 percent, from $458 billion to $1.4 trillion.  A quick review of Democrat’s spending increases in 2009 shows why the deficit exploded.  In 2009 alone, House Democrats passed $787 billion in “stimulus” spending (which will also add $347 billion in interest), two omnibus spending bills totaling more than $855 billion, and increased non-defense spending by 12 percent.  Faced with declining revenues, the President has chosen the least responsible option by increasing spending and deficits rather than lowering federal expenditures.

Deficits:  Another result of Obama’s runaway spending is record breaking deficits for the next decade and beyond.  Since Obama was inaugurated, the U.S. has had an average monthly deficit of $122.6 billion.  By comparison, from the year 2000 until 2008, the average annual deficit was $196 billion. Unfortunately, the trend of increased federal deficits will not come to an end under the President’s budget.  According to the President’s own estimates, his budget and spending plan will cause deficits to average $905 billion for each of the next ten years.   Budget shortfalls incurred by the government fuel the rise in the nation’s debt because the government is forced to borrow money to meet the shortfall.  In 2009, the budget deficit was $1.4 trillion-the first time in history the deficit exceeded $1 trillion and the first time the deficit exceeded 10 percent of gross domestic product (GDP) since World War II.

Why Spending and Debt Hurt the Economy:  When federal spending exceeds revenues the federal government usually does one of three things:  increase taxes, print new money, or borrow money.  Each of these possibilities is problematic and present different threats to the economy at large-especially during times of economic turmoil.

Keep reading…

Mike Pence appeared on MSNBC this morning to discuss the SOTU, and whether or not Obama has gotten the message from the American people, yet.

See also:

John Boehner:

Can You Blame Them? White House Tries New PR Campaign to Distract From Unpopular Job-Killing Agenda

The Obama Administration’s response to the results of the Massachusetts special election is a new PR campaign, and a hastily put-together one at that.  The New York Times says President Obama’s State of the Union address will now focus on “creating good jobs, addressing the deficit, helping the middle class and changing Washington,” with an accompanying slogan – “a new foundation” – to boot.  But no tacking, no pivoting, no reset-button-pushing, and no speechmaking can paper over the broken status quo President Obama and Washington Democrats have come to represent.  The people have spoken:

Read the whole thing.

Obama was against spending freezes before he was for them:

http://www.cnn.com/2008/POLITICS/09/26/debate.mississippi.transcript/
http://www.cnn.com/2008/POLITICS/10/07/presidential.debate.transcript/
http://www.cbsnews.com/stories/2008/10/16/politics/2008debates/main4525254.shtml

See also:

Obama’s Discretionary Spending Freeze Proposal

Freezes After Huge Increases:  The President’s plan to freeze some expenditures comes after a year of unprecedented discretionary increases which inflated current spending levels.  In March, 2009, the President signed a $410 billion omnibus spending bill for FY 2009 that increased non-defense spending by $32 billion or 8.3 percent above the previous year.  Less than two months ago, in December, he signed yet another, $447 billion omnibus which increased non-defense funding by 12 percent. Not all of those funding increases have taken effect, but the President has not proposed any rescissions.  Between FY 2009 and FY 2010, non-defense discretionary funding increased 17.4 percent.  In addition to the huge increases in regularly appropriated spending, Congress passed a $787 billion “stimulus” bill which included $311 billion in “emergency” discretionary appropriations.  According to the House Budget Committee Republicans, if “stimulus” funding is included, non-defense discretionary funding has increased by 57 percent since Obama took office.

Freezes Only a Portion of Discretionary Spending:  According to reports, the Obama proposal will exempt discretionary “security” spending, including defense, homeland security, veterans, and foreign aid discretionary spending.  Therefore, the discretionary spending subject to the freeze would be limited to portions of the Agriculture, CJS, Energy and Water, Financial Services, Interior, Labor-HHS-Education, Legislative Branch, and the Transportation and HUD spending bills.  According to CBO, those eight appropriations bills account for less than $450 billion or roughly 12 percent of the $3.5 trillion the government will spend in FY 2010.  While any type of spending freeze is a step in the right direction, the President’s proposal would be too limited to considerably reduce deficits, which will average $905 billion annually under Obama’s budget and $672 billion annually under current law over the next ten years.

Ignores Huge, New Spending Programs:  According to press reports, the proposal would exclude spending initiatives that might be passed between now and the start of FY 2011.  This could include the potential cost of implementing a government takeover of health care, the $49.9 billion in discretionary costs associated with a national energy tax, and a second “stimulus” bill which could cost in upwards of $150 billion.  In addition to the huge mandatory costs of the Democrats’ government takeover of health care, according to the Republican staff of the Appropriations Committee, the legislation could cost $150 billion in discretionary funding, costs which are not reflected in the CBO’s scores.  Two CBO letters sent to House and Senate Congressional Leadership prior to consideration of their respective health care bills stated, “CBO has not completed an estimate of all the discretionary costs that would be associated with the legislation.  Total costs would include those arising from the effects of the legislation on a variety of federal programs and agencies as well as from a number of new and existing programs subject to future appropriations.”

Excludes Mandatory Spending:  The spending freeze would not address mandatory spending, which will account for $1.9 trillion or 55 percent of all spending in FY 2010, according to CBO.  For instance, Medicare is projected to be $528 billion or 15 percent of total spending, and CBO estimates that Medicaid will cost $270 billion and account for 8 percent of all federal spending.  Funding for other smaller mandatory programs accounts for an additional $621 billion or 17 percent of federal spending in FY 2010.  In addition, the freeze would exclude any funding designated as “emergency spending,” including mandatory and discretionary portions of the “stimulus” bill, which total almost $500 billion.  None of these funds would be considered for a freeze under the proposal.


Wednesday’s Hero: Specialist Brandon K. Steffy

Specialist Brandon K. Steffy
23 years old from Sault Sainte Marie, Michigan
178th Military Police Detachment, 89th Military Police Brigade, III Corps
October 29, 2009

He came into to this world a rather large baby, so big the doctor thought that he’d just walk home with his mother. Brandon was well mannered, polite, and tough with a contagious laugh that lit up those around him. In 2005 he graduated from Brimley High School and in 2006 enlisted in the United States Army, following a tradition of family military service.

He served in Iraq as a gunner from May 2007 until July 2008 and was deployed to Afghanistan in June 2009 where he was a canine tracker handler for Forward operating Base Fenty Kennel in the Laghman Province. He and his K-9 dog Maci were inseparable, working on tracking terrorists; Maci specialized in tracking the scents of IED making materials.

Spc. Brandon Steffy was killed when the vehicle he was riding in was attacked. His decorations and awards include the Army Commendation Medal, Army Good Conduct Medal, National Defense Service Medal, Afghanistan Campaign Medal, Iraq Campaign Medal-Campaign Star, Global War on Terrorism Service, the Bronze Star and the Purple Heart.

Spc. Steffy is survived by his wife, daughter, parents and his sister.

Brandon made people laugh and he made them cry. There was not one dry eye at his funeral, from every day townsfolk, to big construction workers to police officers; they all recalled Brandon, this “Gentle Giant.” They want everyone to know that if you never knew Brandon, then you really missed out.

All Information Was Found On And Copied From MilitaryCity.com & Freedom Remembered

These brave men and women sacrifice so much in their lives so that others may enjoy the freedoms we get to enjoy everyday. For that, I am proud to call them Hero.
We Should Not Only Mourn These Men And Women Who Died, We Should Also Thank God That Such People Lived

This post is part of the Wednesday Hero Blogroll. For more information about Wednesday Hero, or if you would like to post it on your site, you can go here.

{{{The Thing That Wouldn’t Leave}}}: Pelosi Says Dems Will Have Health Bill

Egad. The Rocky Horror Picture Show that our government has become, continues to appall. First ObamaCare is dead because of the Brown election,  then it’s not dead, and then it is truly dead, stick a fork in it, and then :

The top House Democrat says giving up on a health care bill isn’t an option.

House Speaker Nancy Pelosi said Wednesday, “I don’t see that as a possibility…we will have something.”

The California Democrat said today’s health care system is financially unsustainable, and it’s not in the American character to allow tens of millions of citizens to go uninsured.

Pelosi didn’t say whether the final bill will be the sweeping overhaul sought by President Barack Obama, or smaller-scale legislation that accomplishes only some of his goals. Democrats were on the verge of passing far-reaching legislation, but the loss of a Massachusetts Senate seat has cost them the 60-vote majority needed to deliver.

UPDATE:

In case you didn’t get the “The Thing That Wouldn’t Leave” reference,  (Gosh this dates me) – it’s a classic skit from the original SNL:

John Belushi played the slobby, inconsiderate house guest of nice couple Jane Curtain and Bill Murray. All the rest of the guests had  gone home, it’s past midnight, and Belushi won’t stop flipping channels, and raiding their fridge.

Horrifying!

And hilarious.

UPDATE II:

EEEEEEEEEK!!!

UPDATE III:

CNN Poll shows 69% say scrap the bill, start over

But will the thing take a hint, and leave?

UPDATE IV:

Ace says update II was a false alarm.

Hat tip: Weasel Zippers

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Hump Day New Round-Up

•Frank Ross at Big Government has a good eye:

Former Obama economic adviser, Clinton Secretary of Labor, and Berkely Prof. Robert Reich claimed yesterday in his column at Salon.com that Fox News played a role in the conservative resurgence of 1994:

In December 1994, Bill Clinton proposed a so-called middle-class bill of rights including more tax credits for families with children, expanded retirement accounts, and tax-deductible college tuition. Clinton had lost his battle for healthcare reform. Even worse, by that time the Dems had lost the House and Senate. Washington was riding a huge anti-incumbent wave. Right-wing populists were the ascendancy, with Newt Gingrich and Fox News leading the charge. Bill Clinton thought it desperately important to assure Americans he was on their side.

Of course Fox News didn’t come into existence until October 7, 1996.

I can’t believe we’re losing the “Hipness” race to these guys.

I realize stories like this have a “Media Matters” nit-picky vibe to them. So Reich got a fact wrong, so he’s guilty of Fox derangement syndrome like so many on the left are…is this really worth mentioning?

Yes. Because the left has been doing it to the right for so long, obsessing over every word uttered on Fox News or talk radio, waiting for minor verbal slip-ups so they can rub our noses in it. The  point of Andrew Breitbart’s “Big” websites is to beat the leftwing media at their own game.

•By the way, it should surprise nobody that Fox is the most trusted name in news.

•You are going to be  appalled, and sadly……..not in the least bit surprised by some of the John Edwards anecdotes  shared by Andrew Young in his new book, The Politician, excerpted in the WSJ, today. Here are just a few:

Donations: “S–t, they love me — they would do anything for me,” John Edwards would say after getting a big donation, Young writes. If refused, he would say, “What the hell — why are they wasting my time? I’m going to be president. I don’t have time for this s–t. Everyone wants to give me advice. I don’t want their advice. I want their money.”

Made in USA: Young says Edwards is an Atkins-dieter who hated making appearances at state fairs where “fat rednecks try to shove food down my face. I know I’m the people’s senator, but do I have to hang out with them?” Before a SEIU candidate forum in Las Vegas, Young says Edwards made him cut out a “made in the USA” label from Young’s own suit to sew in place of Edwards’s “made in Italy” label.

Thoughts of leaving: Young says that Edwards would confide in him about how he thought about leaving “crazy” Elizabeth, but how she plays better with American voters than he. “I cringed when he said this,” Young writes.

Young should have been doing a lot of cringing around Edwards…..he should have been suffering damn near continuous shivering douchechills 24/7 around the guy. Yeesh. Who in their right mind would actively work for a man of such character?  Especially one running for President? What’s wrong with Andrew Young?

•The Marxist Roots Of Obama’s “Economic Pivot”:

Look for two key words likely to appear in the President’s speech: “productive” and “unproductive.”

***

The false distinction between so-called “unproductive” and “productive” work has a long and sordid history. It was a cornerstone of Marxist economic theory, and was also a staple of antisemitic rhetoric in Europe. Jews, barred by law from owning land and practicing certain trades, became prominent in finance—“unproductive” work, to their detractors—and were scapegoated during times of economic turmoil.

•Another thing to look for in the speech: the number of times he refers to himself.

•And S.E. Cupp has a few more words to look for, and drink to.

Whatever you do, don’t drink to the word, “I”, or you’ll risk alcohol poisoning.

•More SOTU speech (or “State of the Obama” as Rush calls it) drinking rules, via Dana Loesch

•Schadenfreude alert: Progressives’ anger grows against White House Chief of Staff Rahm Emanuel:

Few in the Obama administration appeared more formidable than Emanuel did a year ago as the new president entered the White House. He was recruited out of his congressional leadership position by Obama, who wanted only Emanuel to run his White House.

He was regarded as a fearsome political force, the enforcer and implementer of the Obama agenda, as “Rahmbo.” Profiles were written conveying that though Emanuel had matured somewhat since his somewhat wilder days in the Clinton White House, he still had the edge that made him so feared by many.

The story of Emanuel in 1992, after Bill Clinton was elected president, driving a steak knife into a table and shouting, “Dead!” over and over as he named off political enemies, was told again and again.

That story is now being reinterpreted by the ascendant liberal grassroots, which has grown disillusioned with the Obama White House.

“You’re not a tough guy if your first thought upon assuming the power of the presidency is to take it and use it to punish your enemies. You’re a cowardly, petty, small-minded thug,” said Jane Hamsher…

•ZoNation: Why Dems are losing: It Aint Complicated

•RE James O’Keefe’s arrest: Andrew Breitbart says….Wait until the facts are in.

Mainstream Media, ACORN, Media Matters (all the supposed defenders of due process and journalistic ethics) are jumping to conclusions over the arrest today of James O’Keefe, with the clear intention to smear and, if possible, convict O’Keefe and his alleged co-conspirators in the court of public opinion in order to taint the “jury of their peers.”

The ACORN story was a huge black eye for the organized left and their allies and cohorts in the mainstream media. So they are relishing every minute of this breaking story, making it their top story – while they ignored the initial ACORN story until they no longer could.

Read the entire piece.

Yeah, I couldn’t believe how quickly the MSM jumped on this story, after it took them so long to cover the truly damning ACORN stings. I for one, have been reserving judgment until I hear more, but  I think it’s safe to say…it don’t look good.

•Hugh Hewitt interviewed Breitbart, yesterday, after the story broke. Transcript, here.

•Aw! Stand up guy,  Tommy Christopher comes to O’Keefe’s defense.

•LOVE THIS! LOTR fans, get yourselves over to Verum Serum, right now, and watch their epic Video: Requiem for ObamaCare which uses LOTR style and imagery.

•COWABUNGA! Disaster poll: Nearly 70 percent say dump Dems’ health care bill

Linked in Michelle Malkin’s Buzzworthy, thanks!


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