Thursday, March 19, 2009

The President is missing the long-term effects of his policies

I found this article written by Mitt Romney( and I couldn't agree more. . .

"President Barack Obama’s actions on the economy have had the opposite effect than what was intended. His address to Congress was meant to restore confidence; instead, consumers retreated and investors sold.

His Treasury Secretary’s bank plan was meant to settle uncertainty; instead it added to it. Every speech, every interview, and every initiative has caused investors in America to recoil.
With consumer confidence plummeting to its lowest level in history and the stock market falling 20% since his taking office, it’s clear that something is wrong.

I believe it is that so far, Barack Obama has focused on the short term, on what I refer to as the first order effects of his policies. That initially plays well with some in the media and with the public at large. But investors are looking to see what the impact will be down the road. They don’t like what they see. President Obama’s economic policies fail to take into account second and third order effects.

In the president’s first address to Congress, he announced plans for a trillion-dollar health care plan and to take responsibility for a child from birth to its first job—universal healthcare, universal pre-school and universal higher education. To a lot of people, that sounds pretty good.
But look at the consequences: a budget that grows discretionary spending by a whopping 12%, that produces trillion-dollar deficits and that means much more borrowing from the Chinese and others. We may be approaching the tipping point where people who are lending us all that money will begin to worry about what the dollar will be worth in the future.

President Obama’s excessive spending and borrowing could precipitate a crisis of confidence in our currency and lead to hyper-inflation, evaporating what is left of family savings and wiping out the middle class.

The President’s cap-and-trade plan also ignores second order effects. By placing a trillion dollar energy burden on companies that do business here and without requiring China and India and others to sign on, energy-intensive companies will move.

Emissions will grow in China even as they decline—along with jobs—here in the US. Even those who are worried about carbon emissions don’t call it America warming—they call it global warming.

The President’s corporate tax plan makes the same error. He proposes to tax multi-national companies that “export jobs to other countries.” Sounds good on the surface.

But American companies that have subsidiaries doing business in other countries already pay taxes there; making them pay higher US taxes will make them uncompetitive in those markets and cost jobs here. And the multinationals themselves will simply relocate outside the US. The result will not be more jobs and more tax revenue as the President claims, but less.

The administration intends to sharply raise taxes on all investment income: interest, dividends and capital gains. But the pool of risk capital that finances new jobs and new businesses has already been shrunk by trillions of dollars; raising the tax on investment will shrink it further, depress job creation and result in less government revenue.

Even the President’s mortgage plan fails to adequately consider its long term consequences. By requiring investors and lenders to reduce the principal amount of their loan and by enabling bankruptcy judges to re-write mortgages, investors in the future will demand higher mortgage interest rates to compensate for their higher risk. Housing will suffer, as will responsible borrowers.

Perhaps the most disconcerting aspect of the President’s proposals is that they appear to be taking America down the very path of big government, big spending and big borrowing that got us in so much trouble in the first place.

By ignoring the second order consequences of his policies, the President is deepening and lengthening this recession. He inherited a recession, yes, but he is making it worse.
There is still time to limit the damage caused by the President’s policies. Republicans and “blue dog” Democrats need to insist on fiscal discipline. Expanding health insurance and improving education can be achieved without massive new federal spending.

Taxes should not be raised. Energy policy must not penalize America. Entitlements must be reformed. And a half a trillion dollar deficit in four years, which rises every year thereafter, must be rejected. It is unacceptable as a budget; it is unthinkable as a goal.

In times like these, America needs leaders with vision—men and women who see beyond the immediate, who understand and appreciate the importance of looking beyond today’s horizon.
President Obama has the opportunity to be that kind of leader. But that will only happen if he and his administration put aside their nearsighted, liberal agenda and focus on America’s future."
All I can say is, ROMNEY FOR PRESIDENT 2012!


Shell in your Pocket said...

Great post~ I would love Americans to spend just one month of socialized healthcare...waiting in long lines for hours for tests...just a starter. We have friends who live in countries in socialized medicine and it's awful~
sandy toe

Patty said...

Yesterday something happened that has not been covered by anyone I know except for Glen Beck. As a last ditch effort to fix the economy the Fed is pumping 1 trillion dollars into our system to buy our debt from our treasury. This has never been done in the history of the U.S. This in essence means that we are borrowing money from ourselves to pay ourselves for programs we can't afford. We are just manufacturing 1 trillion dollars out of mid air. This has been tried before but has never ever worked in the history of the civilized world. So instead of preventing us from going into a feared depression, the dollar and our monetary system will totally collapse. This is the most important decision this country has ever made and they just did this without even discussing it with us! To find out more about this go to and sign up for his free newsletter. I just thought you guys might want to know since nobody seems to be covering this!

Jan said...

This is awesome. So informative and makes me fall in love with Mitt all over again. Thanks Holly Dolly.

Pedaling said...

i am a romney fan. big time!
and i hope he runs.
he's on larry king tonight, or he was. i recorded it and am looking forward to hearing what he says.
all said here is right on. thanks for posting it.
today rush said something about what liberals really want in translation is to spread the misery around more evenly. obama seems to have a chip on his shoulder about race and about poverty.

Patty said...

Oh yeah, I love Mitt Romney!! He really knows what he is talking about.

Devri said...

I love Mit.. 2012 here we come.

Marie Rayner said...

I think Mitt Romney would have been a far better choice. Let's hope it happens in 2012!

The Bright Family said...

Romney has been every where lately--I think it is pretty safe to say he is running!! :) His son is on the panel on the Hannity show too. Romney 2012!

the duchess said...

Great article. I heard Mitt on Hannity's radio show and then on Larry King Live last night. Every time I hear him I'm more convinced that he's the real deal. What a different perspective our country would have if he had been elected.

I also couldn't get over the 1 trillion that was pumped into the economy yesterday by the Fed. It's so scarey and NOBODY reported it except Glenn. The media couldn't possibly be more in the tank for the President/Democrats than they are now.

Oh, and Obama's gaffe last night on Leno! If Bush had slighted the Special Olympics he'd have been mercilessly slaughtered by the media. Looks like true colors fly on the rare occasion he doesn't use a teleprompter.

-Melissa- said...

great article!

Becca said...

I miss Mitt:(

Katie said...

Great article thanks Holly.

Tonya said...

Great Post... Thanks for sharing it!

Me said...

So true! Right on man! Obama seems to think he is going to make it all even and fair for everyone. He forgets that no law can accomplish this task no matter the incentive or the punishment. It will never be equal, there will always still be injustices. It will ONLY happen through the Lord. Guess Satan will never give up on trying to destroy the Lord's plan. You think after all this time he would have figured out that it never matters how many he shackles, he still won't win. Too bad we allow ourselves to be shackled so easily and dragged away.