Friday, September 6, 2013

Left & Right Agree - Obama's Economic Policy Has Been "An Astonishing, Horrifying Failure"

Another month into the Obama presidency, another horrid economic report. This from Hot Air:

The August jobs report from BLS offers yet another installment on the four-year stagnation period after the Great Recession. The US economy added 169,000 jobs, just above the 150,000 needed to keep pace with population growth. The U-3 jobless rate edged downward to 7.3%, but that’s because the labor force participation rate hit another 35-year low. . . . [A]lmost twice as many people [312,000] left the work force as found new jobs.

Obama, and indeed, the entire left, are simply economically incompetent. They shouldn't be allowed to run a lemonade stand. They see businesses as, at once, an enemy to be regulated and punished and as a cow to be milked for all they want.

The only thing keeping this economy afloat, even in this sad state, has been the Federal Reserve's "quantitative easing" - running the printing presses overtime, printing money to buy up government bonds in something akin to the world's biggest ponzi scheme. The danger of that is run away inflation, and indeed, the Fed has indicated that it intends to start unwinding this massive accumulation of debt at some point here in the near future as unemployment numbers fall.

The only part of the U.S. economy that is doing well is the stock market - and that is a bubble derived by Quantitative Easing (QE) that will burst the moment QE and the Fed's easy money policy stops. There is a reason today that Wall St. is celebrating the horrid economic numbers from the August BLS report - it means that QE will continue. This via Bizzy Blog:

Speaking today, at least one very famous economist says that we have suffered through five "years of tragic waste" under Obama:

[B]y any objective standard, U.S. economic policy since Lehman has been an astonishing, horrifying failure.

I couldn't agree more. That is indeed a damning indictment, but who is the economist that said this? Thomas Sowell? Art Laffer?

No. It is former Enron Advisor, Obama cheerleader and far left economist Paul Krugman writing in the NYT. As Krugman points out:

[T]he failure of policy these past five years has, in fact, been immense.

Some of that immensity can be measured in dollars and cents. Reasonable measures of the “output gap” over the past five years — the difference between the value of goods and services America could and should have produced and what it actually produced — run well over $2 trillion. That’s trillions of dollars of pure waste, which we will never get back.

Behind that financial waste lies an even more tragic waste of human potential. Before the financial crisis, 63 percent of adult Americans were employed; that number quickly plunged to less than 59 percent, and there it remains.

Do remember that Krugman blessed off on Obama's "stimulus" plan several years ago, both in design and size. Now he claims that the real problem is that the stimulus was three times too small. As Powerline describes it:

Of course, Krugman thinks the problem with Obama’s policies is that the stimulus was too small, the United States isn’t far enough in debt, and we don’t have a big enough public sector. More cowbell! The salient point, I think, is that we can say it is now unanimous: Left and Right agree that Obamanomics has been an utter failure. The only question at this point is whether to go even farther left–to, what, the policies of Fidel Castro or Kim Jong-un?–or return to the principles of limited government and a free market that produced our prosperity in the first place. Seems like an easy choice.

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