On President Obama and Economics

Considering yesterday’s post, you may wonder whether I have some sort of vendetta or personal grudge against our president.  I do not.  I have a grudge against the welfare-warfare state, and since President Obama is heading it up, and bringing us more welfare and warfare, I am opposed, staunchly, to his policies which lead us in that direction.  I pray for him and hope for the best, and certainly have reason for some optimism.  But I am not expecting a liberty-based perspective from him.  I am relatively ambivalent about his superpopularity: that will be an achilles heel, a constant barrage of special interests that can in no way find complete satisfaction at his hand, and they will one day turn on him, in my opinion.  My wife and I are in agreement: with popular (and celebrity) expectations so high, how can he possibly meet them without becoming a tyrant?

I am staunchly opposed to his narrow-minded economic perspective.  He wants to transcend ideology by embracing it.  Namely, that ideology which trusts central economic planning and the powerful hand of government to fix problems.  The more numerous the problems, the more heavy-handed the government response.  The narrow-mindedness stems from the lack of regard to infringements on personal liberty and the misunderstanding that government intervention is the source of many of these problems to begin with.

Mr. Obama has said very recently, “Every economist, even those who may quibble with the details of the makeup in a package, will agree that if you’ve got a trillion dollars in lost demand this year, and a trillion dollars in lost demand next year, then you’ve got to have a big enough recovery package to actually make up for those lost jobs and lost demand.”

On January 9th, he said something similar, “”There is no disagreement that we need action by our government, a recovery plan that will help to jump-start the economy.”

I recommend you consult this interview for a perspective into the actual disagreement.  There are economists from the Austrian School that trust liberty over statism and freedom over government control.  They understand the great irony that statism is largely to blame for many of the weaknesses government tries to remedy.  It’s as if one tries to cure mercury poisoning by consuming more mercury, not understanding the cause, nor the effects of the cure.

Please note this ad: there is certainly disagreement with the idea that further government spending will fix the problem.

Mr. President, if you truly desire change that leads to greater prosperity, peace, freedom, and unity for all, you do yourself and the American people a huge disservice by discounting this growing school of thought that puts individual liberty ahead of collectivism.



Filed under Austrian Economics, fiscal policy, Learning, politics, role of government, Social Commentary

2 responses to “On President Obama and Economics

  1. Great post! Neither Congress, nor the President can bypass or escape the laws of economics and their consequences, no matter how well-meaning or popular the ideas or the politicians may be.

  2. “how can he possibly meet them without becoming a tyrant?”

    He can’t. I think he’s exhibiting some worrying tendencies, bringing out “people voted for HopenChange, and I won” every time he hits a partisan roadblock. It’s been interesting to watch how – regardless of his willingness to let “the other side” (but not journalists) at least finish their sentences, which is a step in the right direction – it comes down to “well, I won, so my side gets what they want, and if you don’t give me what I want, we’ll be poor forever.” (What I hear when he says that: “I’ll sign an executive order making it so!”)

    I’m not sure how many executive orders previous presidents have signed in their first few weeks, but at this rate, he seems to be giving FDR a run for his money. And we *know* the results of FDR’s rule by fiat…

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