Home > Economy, Obama > Obama and the new Depression

Obama and the new Depression

Right now we’re in a slowdown. Not quite a recession, but we are nevertheless economically vulnerable. In order to help us evade a depression and shift back towards a period of growth, our next president needs to do three things:

1. Lower taxes or at least not raise them.

2. Cut spending, that’s why we’re in this mess.

3. Expand our trading markets.

McCain wants to do all three. Hillary wants two out of three, also not bad. Obama says he will do the opposite of all three. He wants to raise taxes, raise spending, and diminish or eliminate many trade agreements. We’ve seen this type of economic policy before in a Republican president: Herbert Hoover, the man who led us into the original Great Depression. Most Republicans and most Democrats learned from Hoover’s mistakes and have avoided repeating them. Bill Clinton, for example, did all three. That’s why our economy was strong in the 1990’s. If Obama becomes president, we may be staring at a new depression.

For reference, here’s Obama’s stated positions on the above economic issues.

Taxes:

Obama has stated that he wants to raise the capital gains tax, which will affect one third of Americans.

Source: New York Times

MR. GIBSON: All right.

You have however said you would favor an increase in the capital gains tax. As a matter of fact, you said on CNBC, and I quote, “I certainly would not go above what existed under Bill Clinton, which was 28 percent.”

It’s now 15 percent. That’s almost a doubling if you went to 28 percent. But actually Bill Clinton in 1997 signed legislation that dropped the capital gains tax to 20 percent.

SENATOR OBAMA: Right.

Spending:

To his discredit, Bush raised spending. At the current government spending level, we are already spending too much. Obama has not vowed to eliminate any of Bush’s domestic programs, but instead intends to add more expensive programs to the already too long list. One would think that the candidate of “change” would want to avoid following the policies of Bush, rather than doubling down on them.

Source: www.barackobama.com/

Obama’s Plan to Cover Uninsured Americans: Obama will make available a new national health plan to all Americans, including the self-employed and small businesses, to buy affordable health coverage that is similar to the plan available to members of Congress. The Obama plan will have the following features:

1. Guaranteed eligibility. No American will be turned away from any insurance plan because of illness or pre-existing conditions.
2. Comprehensive benefits. The benefit package will be similar to that offered through Federal Employees Health Benefits Program (FEHBP), the plan members of Congress have. The plan will cover all essential medical services, including preventive, maternity and mental health care.
3. Affordable premiums, co-pays and deductibles.
4. Subsidies. Individuals and families who do not qualify for Medicaid or SCHIP but still need financial assistance will receive an income-related federal subsidy to buy into the new public plan or purchase a private health care plan.

All of this, especially the subsidies, will require large amounts of money from the government. All of these proposals, including insurance for the self-employed, are already available through non-government or limited government means. Obama’s plan will ultimately just make them more expensive.

Trade:

Source: www.barackobama.com/

He [Obama] will use trade agreements to spread good labor and environmental standards around the world and stand firm against agreements like the Central American Free Trade Agreement that fail to live up to those important benchmarks.

In other words, Obama will oppose any free trade agreements that he doesn’t feel disperse his labor policies. He wants to force other countries to adopt his standards instead of FREE trade agreements which allow nations to trade, well, freely. When you use pressure (in this case economic) to force another country to adopt your ways, that’s called imperialism. Not only that, but closing markets simply because the leaders think differently than Obama, will hurt the economy – not just ours, but the third world countries cut off from us because Obama doesn’t like them.

As in the Great Depression, if the U.S. should be steered into an economic ditch, the whole world will suffer. The world is already suffering needlessly because of our excessive spending. Food prices are too high. Gas is too high. Obama’s stated policies will make that all much worse.

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Categories: Economy, Obama
  1. Tommy Watts
    June 9, 2008 at 6:59 am

    Well. What can I say? Obamamama sucks!

    (No dammit! I am not a racist!)

  2. havok
    July 6, 2008 at 1:48 pm

    america dosnt want to admit it but its falling.. revelations is coming true. good, im tired of watching americas greed grow and the people turn to shit

  3. brandon
    September 23, 2008 at 12:15 pm

    ok first off this country has been in a downward spiral economically since the 60’s and the economy really started to plummet in the 80’s which is around the time we started relying more on financialization as opposed to manufacturing. just read the third thesis in a book entitled american theocracy; the peril and politics of religion, oil, and borrowd money in the 21st century by kevin phillips. its all in that book i promise you and you wont like what u read. oh and by the way the war in iraq is an example of imperialism, think about it. actually i think whoever wrote this initial article is crazy the new depression is going to happen no matter what and its really not the next presidents fault.

  4. fredshelm
    September 23, 2008 at 4:41 pm

    Brandon, American Theocracy is not a good source if one wants to understand the economy. (And the title makes no sense) I agree that our financial sector is over-inflated, but the book also promotes an unrealistic variety of mercantilism – which was already unrealistic to begin with.

    Furthermore, there is your strange assertion that the Iraq war was a form of imperialism. Strange, because imperialism consists of the acquisition of resources from another through force. The opposite occurred. In the process of building a democracy, we’ve given billions to the Iraqis.

  5. July 4, 2010 at 11:21 am

    Great article, My personal saved your web site we pay a after again upon, Good

  1. September 18, 2008 at 12:33 pm

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