American Elephants

Obama, in Permanent Campaign Mode, Plays Politics With Unemployment. by The Elephant's Child

President Obama, once again, tries to play the class-warfare game.  Goodness, even the British have noticed.  Janet Daley, a prominent British columnist, notes Barack Obama’s attempts to push class resentment in support of failing administration policies.  His Saturday radio message was a laughable attempt to (once again) call Republicans “the party of the rich.”

Speaker of the House Nancy Pelosi (D-SF) (estimated wealth $21 million) believes firmly that unemployment benefits create jobs. This loony theory assumes that people receiving unemployment are so destitute that they immediately rush out to spend every bit of their check, and the “multiplier effect,” a feature of the Keynesian economic computer models, make each dollar spent magically worth at least 1½ times as much in the economy, so everyone will start hiring. There are some missed steps in this process which have to do with uncertainty, increased taxes, increased regulation that have businesses sitting on their hands, afraid to do anything.  Another reason why Keynesian economics have largely been discredited.

The Obama campaign claimed that all their donations came from small amounts contributed by thousands of enthusiastic little people, but such was proved not to be the case.  Their campaign funds came from big donations from the unions, and big donations from — um, — rich people.

The Democracy Alliance was founded in early 2005 by very rich Liberals furious that their efforts to elect John Kerry did not succeed.  In April of 2005 seventy millionaires and billionaires met in Phoenix for a secret planning session.  Members of the Democracy Alliance (called “partners”) pay an initial $25,000 fee, and $30,000 in yearly dues.  They must also pledge to give at least $200,000 each year to groups that the Alliance endorses.

What the unemployed need are jobs.  Not government jobs, although Washington D.C. is the only place in the country where they are really hiring, because they are also paid for with taxpayer money or funds borrowed from China.  What will cause businesses to start hiring?  Removing the uncertainty that now has everyone sitting on the sidelines.

Every time a businessman turns around, there are a new set of rules and regulations. New rules on derivatives targeted on Wall Street but the effect of the rules will weigh heavily on farmers who use them to allay the risk that comes from weather or a drop in price on the market.  The bill will also affect small manufacturers, city governments, credit bureaus and home buyers.  How much?  How bad?  Nobody knows.

The healthcare bill’s effect on business is still unknown.  We’re just finding out a little more about the car-company debacle.  The disaster of the oil spill is not ended by the capping of the well, but exacerbated by the misguided moratorium on drilling.  When the government gets around to recognizing what their moratorium is doing, it may be too late, and all the rigs will have departed for friendlier climes.

The Obama administration has no idea how jobs are created.  Almost no one among his advisers and cabinet members has ever worked in the private sector.  Nor will they listen to those who have. Nor are they willing to listen to other approaches. Obama, we are told, is very dogmatic.  He does not change his mind.  I really hope that is not true.

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