Obama’s Happy Depression

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Last Tuesday morning, Secretary of the Treasury Timothy Geithner “welcomed” us to the recovery. Seriously. “[A] review of recent data on the American economy shows that we are on a path back to growth,” he assured us. “The recession that began in late 2007 was extraordinarily severe, but the action we took at its height to stimulate the economy helped arrest the freefall, preventing an even deeper collapse and putting the economy on the road to recovery.”

This is what we call whistling through the graveyard. It’s Geithner channeling Groucho Marx circa “Duck Soup”: “Who’re you gonna believe? Me or your own eyes?”

The Obama administration wants us to believe them. What evidence do they provide to the effect that they “saved” the economy? Vagaries heaped upon vagaries; meaningless phrases piled atop meaningless phrases. No hard numbers of any value.

In fact, the Second Great Depression is just beginning. And just as during the First Great Depression, economic liberals are declaring that it doesn’t exist. “The depression is over,” President Herbert Hoover told a group of clergymen in 1930. “I am convinced,” he said in 1931, “we have passed the worst and with continued effort we shall rapidly recover.” In 1930, the national unemployment rate — which was a true unemployment rate, not today’s watered down version, which doesn’t count people who have totally dropped out of the job market — was 8.7 percent. In 1931, it was 15.8 percent. Today, our real unemployment rate is somewhere near 20 percent.

Hoover was wrong and so are Obama and his lackeys. And just like Hoover, Obama will take measures that are economically feasible in a strong economy but absolutely disastrous in a weak one.

After declaring the economy on the rebound, Hoover pursued three economic measures: raising tariffs, raising spending and raising taxes. Despite his personal opposition to the disastrous Smoot-Hawley Tariff Act of 1930, Hoover signed it into law, stating, “With returning normal conditions, our foreign trade will continue to expand.”

He raised government spending as well; between 1929 and 1933, Hoover raised real per capita federal spending by 88 percent. He forced through the construction of the Reconstruction Finance Corp., an agency designed to lend money to banks and building and loan associations, among other businesses.

“I have been called a socialist, a Bolshevik, a communist and a lot of other terms of similar nature,” fumed Rep. Fiorello La Guardia (R-N.Y.), “but in the wildest flights of my imagination, I never thought of such a thing as putting the government into business as far as this bill would put it in.”

Even as he raised spending, Hoover hypocritically called for tamping down the deficit. His solution: raising taxes. “Nothing will contribute more to the return of prosperity than to maintain the sound fiscal position of the federal government,” he declared in 1931.

Sound familiar?

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  • davarino

    What do they have to worry about, these fat cats have their pensions and government guarantees to soften the economic down turn. Of course they need to raise taxes, those pensions arent going to fund themselves, especially in a down economy. Ah yes, its good to be king, you can do anything, especially when you are the first black president. The sad thing about this whole thing is that, after his one or two terms, Obama will go down in history as the worst president. Unfortunately his presidency will be blamed on racist America, because people just didnt give him a chance.

  • max power

    why are so many pieces written as if obama and clown corp. are trying to get the economy improving ?

    they are not …STOP giving them the legitimacy that they are.

    they are actively imploding the economy while buying votes and creating more americans dependent on the government …more vote buying.

    welcome to Zimbabwe …remember what New Orleans looked like after Katrina …that is what the whole country will be like when these assh0les are done.

  • Cuban Refugee

    One of the marked differences between Hoover's Great Depression and Obama's slap in the face of capitalism as he channels Saul Alinsky is that Hoover was not also using the Cloward-Piven Strategy to deliberately bring our country to its knees in every sector. Did Hoover also appoint a cadre of Marxist czars to regulate U.S. citizens to death? If we continue down this twisted road at Obama's breakneck speed to destruction and polarization, "a chicken in every pot, and a car in every garage" will morph into "a race war in every city, and a suicide in every garage."

  • Stephen D.

    I think Newt has it right when this Admin. acts as if it has to fight against big business to impose regulations when in fact big business helped write these regs. It is the SMALL BUSINESS in America that will suffer. After all Tommy's Tool & Die can't meet or withstand the regs that Craftsman can so Tommy's piece of the pie gets "redistributed" 1/2 Gov. & 1/2 Big Business. My question is: how long before we're giving back 80% of our pay for minimal services?

  • TonyM

    Obama is an economic iliterate and a radical leftist ideologue. He may actually believe the economic clap-trap being fed to him by his amazingly brilliant group of economic advisors who are just trying to save their own butts while the economy heads over the cliff. The more Obama speaks, the more he seems to be but a puppet and spokesman for the other looney radicals with whom he has surrounded himself. HIs academic records are sealed because he isn't that bright.