Wednesday, November 18, 2009

Obama's Most Outrageous Statement: Debt Could Cause Recession

I glanced at a headline this morning and had to double check the address to make sure that I wasn't on comedy Central's website. Our beloved President. The President that has grown our national debt at the fastest and largest rate in history is now saying that US debt could fuel a 2nd recession(as if the 1st ever ended). My jaw just hit the floor. This is the same president that wants to grow the debt even further with his health care bill. This is the same president that wants to grow the debt even further with a second stimulus package. This is the same party that said TARP and Stimulus were about creating jobs, while both now race to create a jobs bill and a jobs summit. If Obama has had a real change of heart(i doubt it because it is really all about causing a crisis to gain power), I think we have the Chinese to thank. Yes, our friends, the communist Chinese were likely the ones that enlightened Obama on the virtues of the free market.
In a previous post, I examined the simple logic around the use of tax money, real or unreal, to grow the economy. The logic says that if the expenditure of some of the government treasury will stimulate the economy, then a larger expenditure will stimulate the economy more. Therefore, the sole purpose of the government should be to grow the economy. Well, you know that isn't how it works and Obama's logic is flawed. Now, Obama is stating actual logic. So let's take it all the way out. If some government debt is bad for the economy, then a lot of government debt is worse for the economy.

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