That’s not encouraging

| March 6, 2009

Another eye-catching headline from the Associated Press;

While the stock market tumbles, unemployment shoots higher, gas prices are rising again but The One “knows” he did the right thing. See, here let me explain to any Democrat philosophy major who has never had a job or a business or invested in the stock market how those things work (because I have a little experience at all three) – those things do well, or poorly, based on the expectations of future performance. That’s why businesses have sales targets and staff economists to project that stuff.

If it looks like business will be bad, businesses will cut labor – the most expensive part of doing business. If investors think that government is making unfriendly gestures towards the economy, they won’t invest and the market tumbles – businesses shed more jobs so they can stay in business. If taxpayers think their taxes will rise, they’ll stop spending their money to make those balloon payments they expect next year from the IRS.

The economy today is a result of what people with money think the future looks like. The reason the economy did well under Clinton and Bush is because they knew what the future looked like. The market tumbled after 9-11 because it added uncertainty into the market. Uncertainty that lingered for more than a year until it became apparent that Bush was going to keep the country safe.

I listened to Obama today yammer on about how change is good for us. That he’s tired of dealing with people who want to do things “the old way”, or words to that effect. Um, “the old way” is the reason we’re the most prosperous and powerful nation in the history of the world. Maybe the people who want to do the things “the old way” are right. “The new way” doesn’t seem to be panning out so well. Change isn’t always good – history is littered with spectacular failures that were considered good ideas until they weren’t so good anymore. Things like New Coke and dirigibles.

Folks used to criticize Bush because they said he was pig-headed and never admitted when he was wrong. Obama is being a bit pig-headed, too. Jobless rates rising and the stockmarket tumbling while he chants “I know I was right” is not encouraging. Not in the least. I think that’ll reflect in Monday’s market.

Category: Barack Obama/Joe Biden, Economy, Liberals suck, Politics

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Michael Moon

Excellent post, and right on about change not always being for the best, especially when “the old way” was working pretty darned well.

A little off topic, but you touched a point that I’ve been thinking about for some time, just in the context of health insurance. For some time we’ve been pounded with “facts” about the number of people without health insurance. In a free market, such a large and under served potential market should be attracting businesses to fulfill the need. What was keeping them out? I’ll go out on a limb and say that the government’s own chatter about needing to “fix” this problem is what kept private interests from actively pursuing business models that would have addressed it. When the government — with essentially unlimited resources (yeah, I know, that’s a myth too) decides to enter a market segment, the private interests in that segment typically cannot compete on either price or scale. So, as long as the government was acting like it might offer some kind of health insurance for low-income families, no private enterprise would be crazy enough to touch it.

defendUSA

Jonn,
I amazed at the stupidity of people. Those 25 cops will be gone as soon as the stimulus money disappears or, the city has to come up with that money. Good God, this guy is the worst thing to ever happen to the Country. I just hope the rest of them wake the hell up.

Frankly Opinionated

Prez Hussein, the 111th Congress, and the blind democrat voters; who all refuse to accept any responsibility, will not change their minds until we have lost the whole damned thing. And with every business news report that I click on; I am reminded of the commenter here, (SD), who is so elated that the Democrats won. Damned right they won! At the expense of America. Some victory they got, isn’t it? I thank GOD daily, that I am not invested, and feel sorry for those friends of mine who are. Recently, I took what small amount of cash I had and bought an alternative home, an additional vehicle, and more tools. Any of you who find a need to stay in your old house and not trade up; myself or someone like me would be glad to do an inexpensive remodel and upgrade to your existing home. Right now, I am doing just that for a Sportfish boat owner, allowing him to keep his offshore enjoyment, in the midst of all this “Change”.
Yes, the Democrats won in 2008. One Big Assed Mistake America. Check that acronym…………
nuf sed