Obama’s Great Economic Lie

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On Tuesday, April 10, President Obama spoke in Boca Raton at Florida Atlantic University. He promptly showed that he needs a remedial course in basic economics.

The speech covered all the same ground as the rest of his speeches lately: he’s declaring class warfare on the rich. In this speech, though, he went into particular depth on his vision of economics. Or rather, his blindness with regard to economics.

Obama casts his re-election campaign as a debate between becoming a nation “where a shrinking number of people are doing really, really well, but a growing number are struggling to get by,” and a nation where “everybody gets a fair shot … does a fair share … plays by the same set of rules.”

There’s only one problem with this – Obama isn’t on the side he thinks he’s on. According to Robert Reich, Obama’s interim economic advisor, Obama’s supposed economic recovery has gone almost entirely to the top 1%. So his economy is the economy creating unfairness – greater government interventionism does not translate into greater prosperity for those who are not top earners.

But Obama continued. “This is the defining issue of our time,” he said. He admitted that “Government is not the answer to everything.” And he added that the free market “is the greatest force for economic progress in history.” But, he said – and you knew there would be a but – “through our government,we should do together what we cannot do as well for ourselves.”  What kinds of things can’t we do well? Apparently we’re bad at education – although private education routinely outstrips public education in terms of performance. Apparently, we’re bad on our own at health care – even though the most highly-privatized sectors of our health care economy are also the most efficient. And apparently we’re bad at saving our money for the future – even though Social Security is an enormous Ponzi scheme that has essentially gone bankrupt.

No, said Obama, we need government for all of that. “This is not some socialist dream,” he blathered. “They have been made by Democrats and Republicans for generations, because they benefit all of us and they lead to strong and durable economic growth.”

This is nonsense. Worse, it is ahistoric nonsense. Every major government program undertaken by this country has cramped economic growth. Government has exploded over the last decade, but our living standards are essentially the same as they were ten years ago. The programs Obama is so fond of quoting are in dire need of reform – if they’re not reformed, they will be gone within the next two decades. Obama himself is cutting $500 billion from Medicare in order to fund his greater government.

But we still haven’t gotten to the crux of Obama’s vision. Here it is: “When we guarantee basic security for the elderly or the sick or those who are actively looking for work, that doesn’t make us weak.  What makes us weak is when fewer Americans can afford to buy the products that businesses are selling, when fewer people are willing to take risks and start their new business, because if it doesn’t work out they worry about feeding their families …. In this country, prosperity has never trickled down from the wealthy few.  Prosperity has always come from the bottom up, from a strong and growing middle class.”

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  • Gamaliel

    If what makes us weak is that we can't buy products than the logic that in order to make us strong the government should print and borrow money and give it to everyone logically follows. Since that is absurd the premise it is based on is absurd

  • Abisja

    Obama's economic lie, or for that matter the lie of planet earth. I'm not American, just a concerned person about what is going in in the world. The US spends trillions(NASA) on space research and travelling into space. When will someone be bold enough to admit that this is just money spent on totally unachievable objectives. Why are ordinary folk not told that just to circumnavigate our own galaxy(at the speed of light -IMPOSSIBLE), will take 250 000y – so why does NASA waste all this money. Use that money to develop alternative fuels – and then you will be able to kick every oil producing ME country in the behind. Sure we need space tech for communication systems, but to find ET – sorry, he/she is not out there

    • aspacia


      O destroyed NASA with a huge loss in scientific development for the USA. NASA research has provided numerous products: Tang, Velcro, etc., and given us a more in depth understand of the universe via Hubble. NASA was never meant to locate ET. You logic leads me to believe that you do not support scientific research.

      O has provided millions for alternative energy research, and bankrolled failed green energy companies. Companies are researching as well, and when a viable sources comes along, they will develop it, until then we need to drill.

    • mike

      Abisja, NASA is sadly one of the VERY FEW government agencies in America that has ever paid for itself…..possibly the only one thats produced anything of real long term value. Most US agencies are an endless money pit…..NASA is one of the few thats actually shown a return.

      Most of the amazing technology we have in the world today can be traced back to NASA or to its counterparts in other nations. Advances in science….health care….well, pretty much everything…can be traced back to the space programs. I am ALL FOR giving money to these programs, as I know they will eventually pay off, and in a big way.

  • Gamaliel

    Obama is hurting the poor with his inflationary policies. How does he think the high price of gas affects the poor? What about the price of meat that has increased steadily during his administration? What does he thinking the skyrocketing debt under his administration will do to America's ability to help the poor? He is an economic disaster.

    • johnnywoods

      Obummer does not care about the poor. He hates the U.S. and is trying intentionally to our economy. He is so arrogant that he thinks he can rebuild it to his specifications and everything will be better. He is that stupid.

  • Rifleman

    “where a shrinking number of people are doing really, really well, but a growing number are struggling to get by,” – hussein. He left himself wide open there, because that's a glaring and accurate description of his own obamaconomy.

  • Abisja

    Just look at the "Pied Pier" face of this man – he is leading your once great country and Western values and civilization into oblivion. Think – America – THINK! Rid yourselves of this menace at the ballot in November; the rest of right thinking civilization is waiting in anticipation. You either stand up for truth and live, or believe the socialistic lies and go under. May GOD help you in this, almost final hour!

  • Ronald Johnston

    osama obama knows exactly what he is doing. He is a terrorist pervert planted here by our enemies!!!

    • mike

      Terrorist? No….I dont think he is a terrorist planted by our enemies….but he is definitely the direct product of a long list of communist programs enemies of American have undertaken here and abroad.

  • Whatsinaname

    Looking at the picture of Obama for this article I am struck by the face of a man who from 18 yrs on was told he was brilliant (when he wasn't) virtuous (when he wasn't), articulate (when he wasn't), and beloved by all (when he wasn't and certainly isn't). Now this quintessential emperor with no clothes finds himself in a mess wondering why his handlers never told him the job would be so difficult. The poor King is frustrated with his subjects — apparently not all of them see his brilliance, kindness, wisdom, etc. Who knows, one day he may look into the mirror and see he is nothing but the personification of mediocrity with an accute case of inflated ego and narcissism.

  • crypticguise

    Obama is an economic MORON. What else would you think of someone who constantly spouts socialist-Marxist baloney. What is amaizing is that today the latest Rasussen Poll shows that Romney wins only 43% of Independents versus 37 % for Obama. What this proves to me is our nation is full of eonomic illiterates.

  • Arturo

    Obama's ratings are in the pits; his teleprompter is on the fritz.