American Elephants


A few insights from Obama’s press conference. by The Elephant's Child

In his televised press conference last night, celebrating his first 100 days, President Barack Obama claimed that his $787 billion deficit spending stimulus package “has already saved or created over 150,000 jobs.”  It’s just that nobody can figure out where these saved or created new jobs are, and a lot of policy wonks are trying to figure it out.

“This crisis is neither the result of a normal turn of the business cycle nor an accident of history.  We arrived at this point as a result of an era of profound irresponsibility that engulfed both  private and public institutions from some of our largest companies’ executive suites to the seats of power in Washington D.C.”

Well, no. This crisis is the result of regulations put in place by Congressional Democrats, and of Democrats refusal to rein in Fannie Mae and Freddie Mac.

While we have inherited record budget deficits and needed to pass a massive recovery and reinvestment plan to try to jump-start our economy out of recession, we cannot lose sight of the long-run challenges that our country faces and that threaten our economic health…”

Well, guess what happened while our attention was diverted by the debate about torture?  Congress passed an enormous budget without a single Republican vote. The graph below shows the ” inherited deficits,” and estimates of Obama’s spending.

wapoobamabudget11

“We have rejected the false choice between our security and our ideals, by closing the detention center at Guantanamo Bay and banning torture without exception.”

And where did the detainees go?  Obama also acknowledges that the harsh interrogation techniques he has banned might have yielded useful information.

“I don’t think we should micromanage.”

This is what the President says about the automobile companies after describing just how he plans to micromanage the automobile companies.

“We have to lay a new foundation for growth.”

The Treasury Department announced yesterday that it is going to step up the issuing of 30-year bonds to cover the hundreds of billion of dollars the Obama administration is spending on bailouts, budget and stimulus.   An advisory committee warned that domestic and foreign investors are going to demand significantly higher interest rates in exchange for buying the vast number of new bonds.  Higher interest rates will strangle the economic recovery.

At the Reason Foundation, economist Jeffrey Miron explains the financial crisis, and why we would have been better off to have done nothing at all.

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