Nightmare on Pennsylvania Avenue

Townhall.com ^ | September 1, 2011 | Cal Thomas

[Kaslin]

In advance of a "major speech" on the economy and jobs, President Obama has selected Princeton University professor Alan Krueger to be chairman of the Council of Economic Advisers. Krueger is no relation to the horror film character Freddy Krueger, though if his ideas are implemented, they might further "slash" the economy.

Alan Krueger is the latest in a long line of professors and academics to populate this administration. Few, if any, have held real jobs in the private sector. They are mostly theorists, whose theories are often proved wrong, but in academia, as well as in government, being wrong rarely disqualifies one from a leadership post. Intentions are all that matter.

As an economic theorist, Krueger's record for accuracy is not a good one and doesn't produce confidence that adding him to the Obama team will revive an economy in the doldrums.

Krueger, writing for The New York Times blog in 2009, proposed as an object of discussion, instituting a 5 percent consumption, or value added tax (VAT), on top of the income tax, which he said would "raise approximately $500 billion a year, and fill a considerable hold in the budget outlook." He acknowledged, though, that a consumption tax would "reduce economic activity" and be a "greater burden for the poor, who spend a relatively high share of their income."

How many of those working in the private sector think government deserves more of our money when it has done such a dreadful job of spending what we have already provided it?

In May 2011, Krueger said he wanted to raise taxes on energy producers (meaning an end to tax breaks for "big oil"), but he assured us that "because the U.S. is such a small producer (of oil), eliminating the subsidy would have very little effect in the long run and no effect in the short run on gas prices."

America would have more oil if the administration lifted restrictions on drilling in Alaska, the Gulf of Mexico and other places in our backyard. If Krueger thinks raising the cost of energy production by eliminating tax breaks that encourage more exploration would not lead to higher prices, he's been spending too much time in the faculty lounge.

As if all of these new taxes weren't enough, Krueger has also said he wants to raise taxes on some employers to help fund unemployment benefits. If employers have to pay more to pay for the unemployed, won't they be forced to lay off more workers? It becomes a vicious cycle.

Krueger favors a national cap-and-trade program, which he says would produce green jobs. He has claimed the $825 billion stimulus was growing the economy, which can't be taken seriously given the jump in the unemployment rate from 8.2 percent when the stimulus was passed, to the current 9.1 percent. Previous economic advisers Christina Romer and Jared Bernstein predicted that, after the stimulus, unemployment wouldn't rise above 8 percent.

As The Washington Post fact checker, Glenn Kessler, noted last week, "Unless the economy turns around in the next 18 months, Obama is on track to have the worst jobs record of any president in the modern era."

In May 2001, when President George W. Bush had been in office just three months and unemployment was at 4.5 percent, Krueger told Jim Lehrer on PBS, it was hard to find a "silver lining" in the number since "the loss in total employment was almost a quarter of a million jobs" and that it was "quite a grim report."

Who wouldn't settle for numbers like that today?

The naming of Krueger is another indication that President Obama is not likely to adjust his "spread the wealth around" philosophy in light of the facts. With the words "fanatic" and "extremist" being applied by liberal Democrats to some of the Republican presidential candidates, the Obama administration continues to engage in economic extremism with its fanatical policies that don't have a chance of producing jobs in the private sector, much less win congressional approval.

Freddy Krueger terrorized his victims in their dreams. If Alan Krueger has his way, the dreams of too many Americans will soon become nightmares.

[Rummyfan]

Alan Krueger is the latest in a long line of professors and academics to populate this administration. Few, if any, have held real jobs in the private sector. They are mostly theorists, whose theories are often proved wrong...

Summers, Romer, Goolsbee, all led by the Big Thinker himself BHO. Can't believe the schmuck is going to give an address to Congress on the night of the start of the NFL season. Congress should say no thanks.

[GlockThe Vote]

Bump.

[WVKayaker]

Posting this retread response before Zero's campaign speech... and it's just as timely AGAIN!

***************************************

Lame Duck President

by Sarah Palin on Friday, July 22, 2011 at 9:11pm

After listening to the President’s press conference today, let’s keep in mind the following:

This is the same president who proposed an absurdly irresponsible budget that would increase our debt by trillions of dollars, and whose party failed to even put forward a budget in over 800 days! This is the same president who is pushing our country to the brink because of his reckless spending on things like the nearly trillion dollar “stimulus” boondoggle. This is the same president who ignored his own debt commission’s recommendations and demonized the voices of fiscal sanity who proposed responsible plans to reform our entitlement programs and rein in our dangerous debt trajectory. This is the same president who wanted to push through an increase in the debt ceiling that didn’t include any cuts in government spending! This is the same president who wants to slam Americans with tax hikes to cover his reckless spending, but has threatened to veto a bill proposing a balanced budget amendment. This is the same president who hasn’t put forward a responsible plan himself, but has rejected reasonable proposals that would tackle our debt. This is the same president who still refuses to understand that the American electorate rejected his big government agenda last November. As I said in Madison, Wisconsin, at the Tax Day Tea Party rally, “We don’t want it. We can’t afford it. And we are unwilling to pay for it.”

the President is outraged because the GOP House leadership called his bluff and ended discussions with him because they deemed him an obstruction to any real solution to the debt crisis.

He has been deemed a lame duck president. And he is angry now because he is being treated as such.

His foreign policy strategy has been described as “leading from behind.” Well, that’s his domestic policy strategy as well. Why should he be surprised that he’s been left behind in the negotiations when he’s been leading from behind on this debt crisis?

Thank you, GOP House leaders. Please don’t get wobbly on us now.

2012 can’t come soon enough.

- Sarah Palin

Click to learn more about her...

Elect Sarah Palin for President 2012

Re-Elect President Sarah Palin 2016

[NTHockey]

0bambi blames GWB for all our economic ills. Yet, GWB handed him an economy with 5.4% unemployment and 0bambi ran it up to 9.1% unemployment! Run on THAT, why don’t you?

Come to think of it, 0bambi blames GWB for everything from blisters to plagues

[newheart]

In May 2011, Krueger said he wanted to raise taxes on energy producers

ECON 101: Taxes are a cost of doing business. They are passed on to the consumer in the pricing of goods and services. Any college professor with Krueger's credentials knows this. Pretty much every freshman in the first week of Econ 101 knows that.

But when business pushes back on tax increases it makes them look like they are not interested in "paying their fair share." The administration knows that and trumpets it.

So I can only conclude that these people are intentionally attempting to destroy the American economy and foment class warfare.

[OrioleFan]

MSNBC is appoplectic this morning over the speechifier having to move his political speech to conflict with the Packers game. Mika was constantly saying her hero (my words) was “disrespected.” Joe was practically writing the speech opening for Zero, bashing the GOP for caring more about their debate than the country, because the speech was so darn important.

I sent them a nastygram that comcluded by saying, “If the speech is so darn important, he should give it tonight.”

[OrioleFan]

Well said!

[Kaslin]

Exactly, and he is going to blame blame President Bush next Thursday for the $1 trillion deficit that Bush created in 8 years. While totally ignoring that he created a deficit of $1.75 trillion in just a couple of month. If he inherited any deficit he inherited it from himself, because he voted for it and then voted to expand it

[COBOL2Java]

"Personally, I liked working for the university! They gave us money and facilities. We didn’t have to produce anything. You’ve never been out of college. You don’t know what it’s like out there! I’ve worked in the private sector… they expect results!"

[Lady Lucky]

He acknowledged, though, that a [five per cent] consumption tax would "reduce economic activity" and be a "greater burden for the poor, who spend a relatively high share of their income."

No problem. Just increase their benefits by ten per cent. Car down payments for the poor; free dentures; extended WIC to families with children up to age 16 instead of 6 or whatever it is. Free internet dsl. Reschedule the welfare payments so they come in every three weeks instead of monthly (this would result in an extra payment every year), raise the LIHEAP awards and make it a federal program; change the banking regs so that recipients of federal handouts get no-fee accounts for their direct deposits, and throw in another stimulus check.

If all that doesn't work, start a new federal program called "pre-SSI." PRESSI would be available to all individuals from birth to age 16, regardless of -- anything!

See how easy it is? If you HELP the poor to spend more of their income, everybody gets stimulated.

[GeronL]

4.5% was horrible but 9.1% ain’t so bad because there is a D in the White House? That isn’t economics, that is pure politics.