Monday, December 29, 2008

Obama's 5 Year Plan


Does anyone ever learn history anymore in school. Are we so emotional that we are willing to throw away the lessons of the past because of the passion of the moment. It is a rhetorical question because I know we are. Obama's is working on his plan to maintain employment by spending almost 800 BILLION on government infrastructure projects, including "green" energy. UCLA recently released a study that said Roosevelt’s Depression era programs, which were smaller in scale than Obama’s proposal, actually extended the length of the depression by seven years, contrary to the popular belief that the programs were what helped to end the depression. The ultimate flaw in the design is that while you may create temporary employment, because there are no market forces driving this employment, it will not create permanent employment. Consumer demand is what will drive employment. You will either have to cut the programs or chase them with more and more money. This is why, while I totally disagree with printing money, Bush has chosen to just give the money out and let the consumer say where it should go as opposed to a government agent. A bunch of guys digging a ditch to lay sewer pipe to a town of 30 is noble in design, but just digging the ditch for digging sake is a waste of time and resources.
Another great leader, from which Obama’s is molded from, was Stalin. He took an agrarian nation and modernized its industry through his series of 5 year plans. The cost of the plans was the continued devaluation of the Soviet currency and the loss of millions of lives. Each 5 year plan led to another because the type of employment was not sustainable. Plans turned into pograms as Stalin turned to starvations, mass killings, and slave labor as the way to combat his economic woes. Will Obama’s ditch diggers be turned into grave diggers? Probably not, but we know that it won’t turn out well.
And just so you know what type of quality we can expect from the government run job programs, you need only look to the recent TVA fiasco.

8 comments:

Kansas Bob said...

It is a huge problem facing Obama, Scott. America just isn't what it was.. I wonder if Americans are what they were.. and countries like China are going to kill us in the global economy.. we have simply out-priced ourselves globally. I don't that that any president can get us out of it. Sorry to be such a cynic.

jrchaard said...

Because manufacturing has been shipped over seas and so many of these countries have boomed because of US exports from their country, as well as high oil prices, I predict that their economies will drastically feel the pressure of our lack of consumerism, and they will have a harder time dealing with it.

Kansas Bob said...

Good thoughts Scott.. of course they all can just come over here and work.. we import labor and products.. and we outsource jobs :(

thejotus said...

I wonder if Obama's 5 year plan will turn out better than "King" Carl Peterson's...

Kansas Bob said...

That was funny Jim! Maybe George W. Bush can take Carl's place.. I hear he is free next year.. of course he might want to move the Chiefs back to Texas :(

jrchaard said...

Bush is a baseball man

Kansas Bob said...

Baseball Bush man would fit in well here :)

jrchaard said...

I'll bet he would fit in nicely with the Royal's. Maybe he could bring that money printing, deficit spending style to the Royal's and buy us a decent team.