The Top Ten Reasons Obamanomics Won't Work

A brute inflationary monetary policy of the kind we are experiencing today can hardly avoid leading to a growth in GDP that, after all, is largely a record of consumer spending. But we cannot judge an economic policy to be "working" simply by detecting such an increase in GDP. Nor may we say policy has "succeeded" just from increases in government jobs or government-subsidized jobs. An economy's success, properly speaking, is one that increases long-term levels of production with robust private sector employment. In short, inflation and public sector growth do not mean a policy has "worked." As the essence of Obamanomics is easy money and government aggrandizement, there are lots of reasons for pessimism. Here are ten of them

10. The Obama economic team really does not know how we got into this mess. For example, Christina Romer, chair of the Council of Economic Advisors, claims that the "fundamental cause" of the current economic downturn is the decline in asset prices from the levels reached in 2006 and 2007, i.e., from the peak of arguably the biggest and broadest asset bubble in history. In other words, she believes that the retreat from absurd valuations is giving us problems.

9. Obama himself follows the scapegoating line initiated by Bush. He blames both the general asset bubble and its collapse on insufficiently regulated companies, rather than on fiat money and central banking -- the sacred institutions of the failed macroeconomic establishment -- which financed every aspect of the Great Bubble.

"A brute inflationary monetary policy of the kind we are experiencing today can hardly avoid leading to a growth in GDP that, after all, is largely a record of consumer spending."

?? It won't lead to growth in the GNP. It creates growth in GND, Gross National DEBT. Our GNP will also SHRINK, it has shrunk, and will continue to shrink unless this government QUITS spending money on social programs that are ultimately paid for by the taxpayer.

What Obama calls "Job Creation" in areas such as education, health care, redecorating government offices and buildings are all added debt which do NOT create additional tax revenues, tax revenues only come from wealth created in the private sector.

Spending tax revenue to "create jobs" does not create additional tax revenues. Sure, some of that money is taxed back, but it is still results in additional spending, which, because the government is broke, has to be borrowed, which adds to our GND (National Debt).

Because no action has been taken by the Obama government to stimulate economic activity in the private sector, which is what creates wealth, economic growth, (GNP) and ultimately, tax revenues- which the government spends on social programs such as education, health care, welfare, Unemployment insurance, old age security, etc. It will continue on as it has, shrinking in most every sector, resulting in more lay offs, which in turn results in LESS tax revenues for the government to spend on social programs, which in turn end up costing even MORE because more and more people are using them.

Shrinking economic activity in the private sector results in shrinking GNP, a number which we won't know until the reciepts are added up each quarter to give us a rough idea, then finally at year end. Then sometime in January or early Febuary, this number is released and we can all see how well or poorly the nation as a whole has done.

Currently, we are using the old GNP figures on which we are calculating what percentage our National Debt is of it, which is a very deceptive maneuver by the Obama government. We all know he has increased our National debt by several trillions of dollars, or several percentage points of our GNP.

In reality however, our GNP has fallen significantly, so our National Debt is now a percentage of GNP which we can never hope to repay and recover from.

Just like when you borrow too much money from the bank, and max out all the credit cards you have; Even paying the interest on all that debt adds up to more money than you earn.

Obama has done that to this nation. He has put this nation into an unrecoverable nose dive.

"But we cannot judge an economic policy to be "working" simply by detecting such an increase in GDP. Nor may we say policy has "succeeded" just from increases in government jobs or government-subsidized jobs. An economy's success, properly speaking, is one that increases long-term levels of production with robust private sector employment. In short, inflation and public sector growth do not mean a policy has "worked."

Even if Obama tossed trillions of dollars into the private sector, which he DIDN'T, For Obama worshipers to claim they are seeing signs of recovery already is rediculous. First, NONE, or hardly any of that money has even been distributed to it's intended targets.
It takes a good YEAR before money dumped into the system shows any measure of effect.

And since Obama hasn't dumped ANY money into the private sector as "stimulus", there can be no effect to measure.

ANY recovery in the private sector will NOT be as a result of anything Obama did. It will be DESPITE what Obama has done.

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