“Mountain Dew” Economics Won’t Solve Our Problems

politicalvanguard.com ^ | 12/18/08 | Tom Del Beccaro

[usflagwaver]

America, and indeed the World, is in a difficult economic period. As the new Administration gets ready to take office, the question remains exactly how it will address our economic woes. Sadly, it appears that Obamanomics won’t satisfy our long terms needs as much as it will attempt to provide a sugar rush for the economy. Like other such elixirs, however, that momentary rush will subside and our long term problems will remain if not be worse. It is worthy to note that we got into this problem because the government inflated the housing market by inducing, if not forcing banks, to make bad loans. That juiced-up market crashed when other government-induced bad economic factors created a triple-witching hour in the summer of 2008. The other two bad factors were government-induced, high oil prices and our high tax burden. Gas prices soared last summer even though the US has enough accessible energy to sustain $2-a-gallon gasoline for decades. But when that most basic economic commodity of all was allowed to spike nearly 250% in a few short months because of bad government policy, it was like a stiff upper cut to our already weakened economic jaw. Of course, the economy was already weak due to the second highest tax burden in American history. So how will Obama follow those bad acts? According to reports, Obama and the Democrat Congress may seek up to a “trillion” dollar “stimulus.” In plain terms, they are going to run up government spending through new New Deal programs and social spending. Just like the failed, 2008 Bush stimulus give-away, however, Obamanomics also will fail. At the time, I argued against the Bush government give-aways because government give-aways lack a very important economic element necessary for any sustained economic recovery: Incentives.

[ClearCase_guy]

People should pay down debt. Or, as I like to say: “Do the Due”.

[Gondring]

Good one.

But, of course, paying down debt makes little sense to the individual in a deflationary period.

[CE2949BB]

I grew up drinking Jolt.

Mountain Dew has no effect on me.