The End of the Obama “Recovery”

The demise of Obamunism, over at the Atlantic:

It’s hard to overstate how much today’s GDP report blew up our understanding of the recovery. The recession was deeper than we knew, and the economy is weaker than we thought. We weren’t making new jobs, because we weren’t making new things, period. The economy grew less than 1% in the first half of 2011.

Yesterday, analysts thought the economy was expanding by 2.5% a year. This morning, they learned GDP grew by only 1.6% in the last four quarters. This is a remarkable discovery. It’s the difference between thinking we’re expanding at a decent, if disappointing, pace, and knowing we’re growing around half our historical norm…

As I said waaaay the heck back in 2010, my guess is that when the history of this time is fully known and all the data analyzed, it will be judged that we never emerged from the recession which officially began in 2007.  Sure, some “growth” happened – goosing the economy with trillions in borrowed and printed money can do that – but there was no real, organic growth.  We didn’t, that is, start creating wealth – not in any sense faster than we were losing it.  Here’s a clue – only wealth can make you wealthy, and wealth is only (ONLY!!!!!) things you make, mine or grow.  What is killing us is that our tax and regulatory climate has made it almost impossible to create wealth in the United States…we’ve been killing the goose that lays our golden eggs.

Our whole economic policy has been to reward the most those who make, mine and grow the least.  Whether its a welfare recipient, “too big to fail” bank, favored special interest or our increasingly regressive bureaucracy, the rewards have been going to people who just consume or who play around with money.  Until we start rewarding most those who farm, mine and manufacture, this situation will just continue to get worse.

An entire shift in our economic thinking is required.  We have to cut the size of government; eliminate huge swaths of regulations and the bureaucrats who enforce them; call a halt to “NIMBYism” and environmentalism which puts walls up against new farms, new mines and new factories; adjust our trade policies so we’re no longer allowing slave-driving tyrants to dump their exports on us; massively increase domestic energy production so that we’re no longer sending money over seas just to drive our cars and turn on our lights…and we need to tell those in America who are not working that they’d better show us a missing leg, or something…we’re not going to subsidize daytime talk show viewing.  Everyone who can work, works…or they don’t eat.  Welcome to the real world, everyone…the liberal fairy tale is over, and its time to get back to being Americans.

15 thoughts on “The End of the Obama “Recovery”

  1. Retired Spook August 1, 2011 / 2:21 pm

    Well, obviously the “Atlantic” hasn’t consulted Thomas yet. Come on, everything is great — good times are just around the corner. At 1.6% economic growth, it’ll just take a little longer.

  2. bardolf August 1, 2011 / 2:59 pm

    http://news.yahoo.com/bulldoze-way-foreclose-102000063.html

    Banks have a new remedy to America’s ailing housing market: Bulldozers.
    There are nearly 1.7 million homes in the U.S. in some state of foreclosure. Banks already own some of these homes and will soon have repossessed many more. Many housing economists worry that near constant stream of home sales from banks could keep housing prices down for years to come. But what if some of those homes never hit the market? ***Bulldoze the houses!***

    Housing economists like these deals because they remove homes from the market that would otherwise sell for a low price or not at all, dragging down home prices in general. An oversupply of homes on the market has been once of the big problems plaguing real estate.

    Matthew 15:27 She replied, “That’s true, Lord, but even dogs are allowed to eat the scraps that fall beneath their masters’ table.”

    So in America today, the “master’s” i.e. bankers in their housing bubble banquet have overreached and accidentally made housing prices within reach of the ‘dogs’. Time to bring in the bulldozing maids to clean up the scraps before the ‘dogs’ think that accidents happen in a free market. Of course the government will give tax credits or bailouts to the master if too many scraps fell off the table.

    The “master’s” advisers like the deal because otherwise the dogs might not know their place in the world, they might start begging at the table which is a real plague to those trying to have a good time at the dinner party.

    • Retired Spook August 1, 2011 / 3:30 pm

      Sort of like Cash for Clunkers for Houses.

    • Cluster August 1, 2011 / 3:39 pm

      Time to bring in the bulldozing maids to clean up the scraps before the ‘dogs’ think that accidents happen in a free market – barstool

      You can’t honestly think that the housing industry has been a “free market”, can you?

      I have known, and dealt with, quite a few of those “dogs” over the last couple of years, and trust me, they gamed the system as much, if not more so than the “masters”

      • neocon1 August 1, 2011 / 3:53 pm

        bulldoze the WH and congress to begin with.

      • neocon1 August 1, 2011 / 3:54 pm

        PS

        preferably with the occupants in them 🙂

      • Green Mountain Boy August 1, 2011 / 4:54 pm

        Neo, the EPA would get us for dumping hazardous waste without a permit,

      • bardolf August 1, 2011 / 5:39 pm

        Clueless

        Of course I don’t think the housing industry is a free market and the bulldozing is the proof. Another argument for a fair tax would be to stop the tax write offs for the losers who made housing into a Ponzi scheme. Funny when China is bulldozing buildings to keep up the pretense of growth we can all see through the charade but when the exact same thing happens here it is more subtle.

        Maybe when you think of dog it is associated with a do nothing animal. I think of working dogs and in this analogy hard working people who couldn’t afford a home in the bubble world the bankers are desperate to hold onto.

      • Cluster August 1, 2011 / 5:54 pm

        Another argument for a fair tax would be to stop the tax write offs for the losers who made housing into a Ponzi scheme.

        That would be your federal government. They encouraged banks to give mortgages to anyone, by promising to buy them on the secondary market via the GSE’s. Then they had the justice department look the other way, so that was a federally sponsored ponzi scheme.

        And the housing bubble? That popped, remember? Fact is, more people were screwed by governments antics, rather than the “masters”, but I don’t know if that would fit into your narrative.

      • bardolf August 1, 2011 / 6:30 pm

        Clueless

        the talking point where everything wrong gets blamed on “THE MAN” aka our federal government is thread worn. The idea that the majority of the housing crisis is because Bush encouraged minority home ownership only works for the kool aid crowd.

  3. js August 1, 2011 / 5:03 pm

    just like his birth certificate…the recovery that never was…

    in 1961…kenya was not a country…it was called mombasa, a part of zanzibar…not kenya…

    just like the recovery…they kept saying was 1.6%…that was like…barely over 0…

    nice tthings to look into…both of them are true

    • js August 1, 2011 / 5:16 pm

      sorry, the territory where obieOnes father came from was not called Kenya…except on obieOnes forged birth certificate…

      • neocon1 August 1, 2011 / 6:25 pm

        HEY PLUGS = “BITE ME”
        FUBO and YOU!!!!

        these people are OUR elected representatives, you filthy POS!!

        The real TERRORISTS went to wrights cult, hung out with domestic terrorists, NOI loons, drug heads and homosexuals, protects black panthers and is friends with hamas.
        look NO further than your filthy party of leftists, commies, sodomites, and real terrorists.

        Psalm 109:8 and soon!

        Biden: Tea partiers like ‘terrorists’

        Vice President Joe Biden arrives at the Senate on Capitol Hill, to help finalize the debt deal agreed on by Republicans and Democrats to avert a default.
        ‘They have acted like terrorists,’ Biden said, according to several sources in the room.

        Vice President Joe Biden joined House Democrats in lashing tea party Republicans Monday, accusing them of having “acted like terrorists” in the fight over raising the nation’s debt limit.

        “We have negotiated with terrorists,” an angry Doyle said, according to sources in the room. “This small group of terrorists have made it impossible to spend any money.”

        Biden, driven by his Democratic allies’ misgivings about the debt-limit deal, responded: “They have acted like terrorists,” according to several sources in the room.

  4. dvindice August 1, 2011 / 11:07 pm

    How can the Obama “Recovery” end when the “Recovery” never really started?

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