Underpromise, Overdeliver

on Thursday, October 29, 2009

...at least that's what my father always taught me. Yet it seems that this administration has consistently done just the opposite. They promised to be the most transparent administration ever. They promised to post each bill on a website for several days before allowing Congress to vote on it so that the pubic would have the chance to properly vet it first. They promised to be decisive in Afghanistan. They promised to not raise taxes on those making less than $250,000 a year.

And yet now, a full 9 months after that sweet quesadilla-flavored "hope and change" reached the White House, we have yet to see the president keep a single one of those promises. This White House has been more secretive than any in modern history, with Congress going as far as to not even allow Repubicans into the room when bills are being drafted. They have not yet posted any major legislation online, nor allowed the public sufficient time to read it (in fact, even Congress themselves haven't been reading the bills before signing them). It's been over a month since General McCrystal begged Obama to send additional troops to Afghanistan "lest we lose", but Obama has yet to act (I guess he's been too busy spending more time on the golf course in 9 months than Bush did in 3 years and making commercials for George Lopez's new show on TBS). And as for taxes, the cap and trade (global warming) legislation that passed this past summer is expected to increase the average American's taxes by $1,800 a year - including everybody making less than $250,000 a year. And don't forget to carry the one into the next column when adding into that figure the fact that Obama is going to intentionally allow the Bush tax cuts to expire...

...and now we have the economy. Obama and crew promised that, if we passed his crappy $1 trillion stimulus (yes, that's trillion with a 'T'), unemployment would not exceed 8% and that millions of jobs would be saved. Yet unemployment is now expected to be at 10% before year's end with the possibility to go even higher. And according to the White House's own estimate, the stimulus only saved a measly 30,000 jobs - a figure that even the AP admits is actually an overestimate to the tune of about 5,000 jobs.

But if all you did today was watch MSNBC or follow any other sycophantic Obama-loving media outlet, you'd think that today's news that the GDP grew by 3.5% last quarter signals that Obama has healed all.

You couldn't be more wrong.

Home sales fell (again) last month and home inventories are not growing. Reconcile that with the fact that the housing tax credits expire in a few weeks, and you've got a recipe for disaster in the housing market for the next few quarters. And according to the Reuters column linked above, business investment fell 2.5% while investment nonresidential structures dropped 9%. Jobless claims are still holding steady as well.

"But Mike, why you gotta so pessimistic, man? This president has done some good things for the economy. Like Cash for Clunkers, man. That was a success. LOL"

You mean the Cash for Clunkers program that took billions of taxpayer dollars and sent them to Japan and Korea? Read what Edmunds has to say today about Cash for Clunkers:

A total of 690,000 new vehicles were sold under the Cash for Clunkers program last summer, but only 125,000 of those were vehicles that would not have been sold anyway, according to an analysis released Wednesday by the automotive Web site Edmunds.com...

The average rebate was $4,000. But the overwhelming majority of sales would have taken place anyway at some time in the last half of 2009, according to Edmunds.com. That means the government ended up spending about $24,000 each for those 125,000 additional vehicle sales.
Read the whole article if you wish to know how they calculated which cars "would have sold anyway". But basically Edmunds sums up to the fact that we spent almost as much as the cost of an average new car to incentivize each legitimate new sale. How in the world is that smart economics? And now that those who were in the car market have purchased, new car inventories will sit stale on the showroom floors this next year. And instead of allowing lower income families to purchase the old clunkers, the government just destroyed them instead to keep Al Gore happy, meaning that 700,000 less cars are available on the market right now for families struggling through the recession. Brilliant, Washington.

So to those who voted for hopenchange last year I ask: Is this the kind of change you can believe in?


UtahOSB said...

Read deeper into the GDP being +3.5% and you quickly figure out that consumer spending is flat or even down slightly and the VAST majority of the 3.5% is Government spending. There should be a big * after this number to indicate how much was one time gov't spending from bills like Cash for Clunkers / TARP / and the Stimulus bills.

Prepare for the double dip recession. I actually sort of hope it happens before the 2010 elections so people will wake up to the out of control spending and send these idiots from both sides of the aisle off to retirement.