Filed under: Capitalism, Democrat Corruption, Economy, Health Care, National Security | Tags: Focus on Jobs and Growth, Jumpstarting the Economy, The Wrong Mindset for the Job
Just before President Barack Obama took off for his Hawaiian Christmas vacation, he held a press conference. Reporter Dan Lothian of CNN asked the president if he could “give an update on that car you talk about so much about being in the ditch?”
THE PRESIDENT: Well, I do think that the car is on level ground. I mean, the car is the economy. And I think we are past the crisis point in the economy, but we now have to pivot and focus on jobs and growth. And my singular focus over the next two years is not rescuing the economy from potential disaster, but rather jumpstarting the economy so that we actually start making a dent in the unemployment rate and we are equipping ourselves so that we can compete in the 21st century.
And that means we’ve got to focus on education, that means we have to focus on research and development, we have to focus on innovation. We have to make sure that in every sector, from manufacturing to clean energy to high-tech to biotech, that we recognize the private sector is going to be the driving force. And what the government can do is to make sure that we are a good partner with them, that we’re a facilitator; that in some cases, we’re a catalyst, when it’s a fledgling industry.
And that means that we’ve got to look at some of our old dogmas — both Democrats and Republicans, conservatives and liberals — to think about what works. If there are regulations that are in place that are impeding innovation, let’s get rid of those regulations. Let’s make sure that we’re also protecting consumers, and we’re protecting the environment and protecting workers in the process. But let’s find ways to do business that helps business.
People were doubtful about the approach that we took to the auto industry, but that was an example of there may be occasions — certainly during crisis — where a timely intervention that’s limited and restricted can end up making a difference.
“I think we are past the crisis point in the economy, but we now have to pivot and focus on jobs and growth. And my singular focus over the next two years in not rescuing the economy from potential disaster, but rather jumpstarting the economy so that we actually start making a dent in the unemployment rate and we are equipping ourselves so that we can compete in the 21st century.”
Do read the whole piece from which this excerpt is derived — It’s just a little longer than what I include here. Now we have to focus on jobs and growth? We should have done that “pivot” a year ago. But Obama isn’t really talking about much of a pivot. His mindset is completely wrong for the job.
Obama believes firmly that bright people from America’s best schools, such as himself, are needed to direct and control activities within the country. The private sector may be the driving force, but only when “facilitated” by the government. The government will make sure that the private sector is making the desirable products for the “clean energy economy.” The electric cars that engineers and auto experts tell us are not ready for prime time until there is an unexpected breakthrough in battery technology, are being made because of government pressure. Most of them are being purchased by the government or by rent-seeking corporations at the behest of government, in order to show sales success.
Obama has made a big deal of subsidizing electric battery factories. Experts tell us that there is a worldwide glut of electric battery production and most of those companies will fail and go out of business, because there is no market. Government facilitating.
“How do we get all these profits that companies have been making since the economy recovered into productive investment and hiring? That’s a conversation that I had with the 20 CEOs who came here, and that’s a conversation I expect to continue in the months ahead.”
Well, first off, when you sign a bill that keeps taxes for the people who actually run the small businesses that you need to start investing and hiring at the same level; it isn’t a good idea to tell them that you hate signing the bill and you will be back to really get them in two years. Did you think that businesses plan only for a year or two? A two-year deadline does nothing to eliminate the uncertainty that has prevented people from investing and hiring. It says to business that you’d better hunker down and get ready for the axe to descend on you in two years, and that because the president does not grasp the free market, you can expect all sorts of regulation to exert more governmental control.
Forgive me, but you haven’t rescued the economy from potential disaster. Your ObamaCare mistake is hanging out there, ready to create complete chaos in the economy; not only have you not done anything to clean up the mess at Fannie Mae and Freddie Mac, but they are being encouraged to repeat the actions that collapsed the economy; and nothing whatsoever has been done to stave off the time-bomb of the demographics of Social Security, Medicare and Medicaid. Just to mention a few minor details!
The problem is the government, and a failure to understand the “free” part of a free economy, and a free market. You have not removed uncertainty at all.
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America could do wore than to send Congress and the top people in the Administration on a three-week tour of New Zealand: ranked No. 2 in the world (after Singapore, an authoritarian city-state) as a place to start a business. New Zealand succeeds in protecting its workers (including with universal health care), and the environment, but levies low taxes and provides almost no subsidies.
Comment by Subsidy Eye December 26, 2010 @ 11:13 pm