Are Obama’s policies responsible for the stock market slide?
Every now and then, the stock market exhibits irrational exuberance or pessimism. But these days, the market’s long-term trend is not irrational. For the first time since the Depression, events have aligned to create the very real possibility of something previously impossible: that the United States could fundamentally transition toward a more European welfare-state model.
“The market” is simply millions of decision-makers buying or selling based on future expectations. And they recognize a perfect storm when they see one. First, take vast economic upheaval and pain demanding attention. Second, add a popular new president with the “Old Keynesian” belief that solutions lie in major government spending and growth (where modern Keynsian models demonstrate limited impact of spending). Third, add the highly rare occurrence that both legislative bodies are of the same mindset with each other and the president, and the even rarer ability to veto most opposition to pass a radical restructuring into law. Finally, add the fact that this theoretical restructuring is no longer theory: the first steps are already being taken.
I ask: why wouldn’t the markets seem subdued? It was entirely logical for share values to descend from their October 2007 high, once we realized that our financial system had the cancer of securitized “nonconforming” loans that could never be repaid. Just as it was entirely logical for 2008 markets to recognize that we would probably have a President Obama – with a more European bent — dealing with our economic illness come January 2009.
Unfortunately, the European philosophy accepts there will be a permanent hit to business and employment because of the higher taxes needed to pay for higher government spending. For example, the Heritage Foundation’s James Sherk pointed out in an interview, Europe has averaged a 60 percent higher unemployment rate than America, and on average European workers remain unemployed more than 12 months compared to three to four months for American workers.
Presidents and policymakers should never react to day-to-day stock market movements, maintaining a long-term focus instead. But a true long-term focus will look to the past and recognize that U.S. affluence has been based on encouraging U.S. business and rejecting the European model. Yes, the economy is sick and we are working the cancer out of our system. But we shouldn’t risk killing the patient in the process.
Are Obama’s policies responsible for the stock market slide?
Since the conservative Washington Times announced “the honeymoon’s over” the day before Barack Obama took office, I suppose it only makes sense that the GOP 2012 game plan is to blame the president for a market slide that began its descent a full year before he came into power. Is the president turning us into — quelle horreur! — Europeans? Let’s take a closer look at just how much of this is Obama’s faute (that’s “fault”, for those of you still speaking English).
We know he didn’t invent the housing bubble or the credit crisis, we know he didn’t oversee the massive deregulation, all leading to the first large bailout on That Other Guy’s watch, and we’re pretty sure that the collective global economic meltdown isn’t his fault either.
In fairness, Obama is still learning how to walk that wobbly line that forces him to both chastise big business while he solicits our support in the government aid that might save it. Yet any inference that the market began to falter in anticipation of an Obama presidency is way off base. That was around the same time Lehman Brothers failed, WaMu was rescued and it literally looked like every bank in the country could go under. (I suppose the market rally the week before the election came because people suddenly decided John McCain had it in the bag? Hardly.)
These are uncertain times; it’s an era where a Comedy Central comedian feels more credible to us than an MSNBC analyst, where the once mighty GOP now turns, for direction and inspiration, to Jonathan Krohn, a 14-year-old with a knack for public speaking. No wonder political panic is rampant on the right. “Socialist” hasn’t had much traction; I can hardly blame them for throwing “European” against the market research wall, hoping the slur will stick.
Americans aren’t terrified of turning into Europeans; they’re rightly concerned about a deepening recession that impacts their lives on a daily basis. They have no trouble remembering and cherishing our proud capitalist roots, but you know what else sticks in their mind? That the perfect storm of events that brought us to this point has little to do with the leader we’re hoping will bring us to shore.
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163 comments Add your comment
Mara
March 26th, 2009
1:26 pm
Gandy, sorry ’bout that…I guess I didn’t read the thread carefully enough. (shrug) As a privately funded and privately run group, the Scouts have every right to espouse (or eschew) any doctrine that they please.
Gale
March 26th, 2009
1:23 pm
I would like to see the scouts separated from the church. However, apparently they need a universal sponser so they have places to meet. I am not sure why that needs to be religious groups except they ussually have accessible space not otherwise committed most of the week. The scouts would have lots of favorable things to teach boys and girls without religion. It really is possible to teach morals and ethics without the religious aspects. From my brief exposure, most scout troops don’t delve into religion anyway.
Gandalf, the White!
March 26th, 2009
1:19 pm
I have to carry a gun when walking my dog, to many illegal mexicans running around.
Gandalf, the White!
March 26th, 2009
1:16 pm
Atheists are not really atheist, they are just too lazy to follow God’s word. They want to smoke thier pot, or have relations with this person or that, and maybe do something goood for someone, if they get around to it. Liberals are much the same. They want GOVERMENT to take care of every problem.
Oh, I just remembered1 Barry is going to lower from 40% to 28% the tax deduction of your charitible contributions. Christians give 10% to the church, he is no Christian! He must be muslim? What do you think? He loves the call to prayer, he can quote the Koran in Arabic and he married a woman the looks like a camel. I love the way democrats think that when a tax reduction expires, it’s not a tax increase! They are lazy just like atheists.
Kimberly, you’re a {DUMBASS!} Just saying….
Gandalf, the White!
March 26th, 2009
12:54 pm
Good logic there Mara! Goverment shouldn’t be INVOLVED, but Scouts can AND SHOULD BE! JesusKiller Jr. was trying to say the Girls Scouts were in fact faith based, which they once were, but are no longer. They are a sad shadow of what they once had been.
American Woman
March 26th, 2009
12:48 pm
Are we discussing religion today?
“It’s all about how we treat each other…” I like that! Good tenet. Is that kind of like: “the love you take is equal to the love you make?” BTW, if you don’t mind me asking, how does that work for you personally? Do you treat EVERYONE the way you want to be treated, and do you reap the rewards of this? Or do you let it slide for the “undeserving,” and if so, how is that working out? (I’m really just curious, and would not want you to answer if it would embarrass you to be truthful. No biggie.)
“The eradication of religion from public society takes away that teaching. How so? The atheists I know adhere to the “treat others the way you want to be treated” philosophy almost religiously. To them, it’s about having personal integrity and honor, not about what an invisible cloud man in the sky, or the congregation down the street thinks. The atheists I know are pretty decent, but you might know different atheists.
“The shootings that are taking place in the zoom-zoom lounge parking lot is not taking place in the First Baptist Church parking lot.” Really? I’ll bet that’s news to the folks at the First Baptist Church in Maryville, Ill, the Tennessee Valley Unitarian Universalist Church in Knoxville, the St. Thomas Syrian Orthodox Knanaya Church in Clifton NJ, the Living Church of God in Brookfield, Wis, the LDS Church in Lehi, UT, the New Life Church in Colorado Springs, the First Congregational Church in Neosho, Mo, the Ministry of Jesus Christ church in North Baton Rouge, and the Zion Hope Missionary Baptist Church in Detroit. Just sayin’.
Mara
March 26th, 2009
11:54 am
TOJ – if you want to get rid of religion
but I don’t want to ‘get rid of religion’. I just want my government to keep its nose out of it. And for religion to keep its grubby paws off of my government.
As for having a ‘blueprint for mutual respect and honesty’, there already IS one that’s almost universal whether you’re talking about religion or basic human rights…Do unto others as you would have others do unto you.
Gale
March 26th, 2009
11:44 am
I lay the blame on too many lawyers, and judges who refuse to toss out cases with no merit, not the lack of religion in schools. We let people sue a teacher for disciplining a child because the child was misbehaving and ‘that’ parent did not agree that the child should be spanked. The school system caved in and removed the option of spanking. Oh, and while they were at it, they took away the right of a teacher to hug a child because that might be seen as inappropriate touching. So, the system is not sued anymore, but discipline goes to heck in a handbasket. We get a couple public cases of a parent neglecting a kid, or a neighbor disciplining a neighborhood child and suddenly, we are all afraid of the role adults have carried for ages; that of supervising the care and teaching of children. We no longer have the village raising children.
I don’t want the schools teaching religion to a child. That is a parental responsibility. If they fail, that poor child will have to learn moral and ethical behavior from other adults in his environment. But if the other adults are afraid to speak to the child because they might be sued or end up in jail, it is the children and our entire society that suffers. The only tool we have to teach ethics to children in the absence of parental guidence is a just society. When the news is filled with politicians breaking or hedging laws and the adults are seen to be rounding disrepecting those in authority, what does the child learn? We have only our actions left with which to teach children.
Frustrated
March 26th, 2009
11:25 am
I totally agree about being a parent first, friends later….but have you not seen the news??? Parents can’t do anything remotely close to how our parent’s disciplined us. I got spanked…..with a paddle….made by my dad….as I was bent over to touch my toes. Granted, I got to the count of 3 as a warning to straighten up, but can you imagine if someone saw that today???? We would have DFCS called on us in a heart beat. Where did spankings go in school????? I would totally sign the consent form that told them they have a right to give my kid a swipe if he was rude/being a brat/not listening/bullying/etc
I live in a small town, I have to run to the mom and pop shop to grab some milk occassionally… But do you think I can leave my tot in the car (with it running) for 10 seconds while I run in????? No, all it would take is someone to see my baby in the car, me not there and I get children’s services called on me… And for those of you who are not parents….sometimes it gets really aggrivating hauling kids in and out of the car for a 2 minute pit stop to pick up something. Especially when they do not want to get back IN the car….but would rather run around in the store..
As far as the small town thing, I would NEVER in my life let my kids roam off around the neighborhood….Not because of them, but because of all the creepos in the world. My baby loves to play outside, and for that, we go out every day the weather is nice….Either we dig up rocks, she plays in her little house while I sit and read (I do believe in letting them have their own imagination)…or it is both of us sitting on the ground blowing bubbles or scribbling with sidewalk chalk.
A lot of rights have been taken away from the parents, so as much as I would say it is ALL placed at the feet of the parents, it isn’t. It is every other wolf cryer who turns in innocent parents and putting the fear of having their kids swiped away…that is why you don’t see kids out…that is why everyone is inside, together…. they don’t want peeping suzie next door to know their every move so that she can call them out on something she doesn’t agree with.
The Other Jack
March 26th, 2009
11:21 am
Mara – a ‘creator’ that is just as likely to be the Flying Spaghetti Monster as it is to be Jesus’ Daddy.
Does that really matter? It’s all about how we treat each other and for centuries, how we treated each other was all about what our religion taught us. Civil laws were taken from religious teachings. Yes, there are always a zealot who uses religion wrongly, but religion teaches us to treat others justly.
The eradication of religion from public society takes away that teaching. The shootings that are taking place in the zoom-zoom lounge parking lot is not taking place in the First Baptist Church parking lot. Religion has a use and a purpose.
Look at the past few posts. We are talking about how with modern society, a parent has to highly restrict our children’s movement during the day. This is caused because of a much more dangerous and course culture that embraces open sex, drug abuse and abhors moral teachings.
If you want to get rid of religion, you had better have a replacement that will act as a blueprint for mutual respect and honesty, but no one is doing that and our culture continues to nose dive.
Religion is pretty much gone as an influence in our school systems and our culture in general. How do you think that is working out so far?