And we haven't even discussed the pending additional disasters of Obamacare and Cap 'n Trade yet.
Meanwhile, Carnegie-Mellon professor Allan Meltzer looks at the politics that brought us to this point.
"So why do many opinion makers insist on inaccurate and frightening analogies that overstate the severity of present conditions? I believe there are several reasons.As I have said before, this financial crisis is mainly one of a lack of confidence, in many ways on many different levels regarding many different aspects of our economic conditions. Yet the signs are their of growth and progress returning, but such signs can easily be erased with the the continued wrong-headed-ness that infests our current Federal government and its apparatus.
First, there is a strong political motivation to make this recession out to be worse than it actually is. The Obama administration wanted to make it appear as though it saved us from an incipient disaster, so it overstated its achievements. The White House also wanted to foist its huge "stimulus" program on the country in order to redistribute income. That pleased many Democrats, but did very little to restore growth.
Many others repeated the administration's hyperbolic claims. One reason is because there is genuine uncertainty about what has happened and what is likely to come. Short-term forecasts have major errors, and extrapolation of current data adds to misinformation. Then there are economists who would like to see government take a larger role in the economy. They've chosen to use the recession as a pretext for arguing for this change.
New York Times columnist Paul Krugman and the International Monetary Fund repeatedly proclaimed that more government spending was a necessity. Most economists now believe that the recession is expected to end before much of the government spending takes hold. And while the improvement in recent GDP data reflects a big increase in government spending, consumer spending declined again in the second quarter. The $787 billion of fiscal stimulus has done little for consumers. Keynesian economists always fail to recognize the powerful regenerative forces of the market economy. The financial press—many of whom share their same political assumptions—endlessly reproduces their beliefs.
The Federal Reserve also shared this Keynesian viewpoint. It provided unprecedented monetary stimulus, increasing the monetary base by more than $1 trillion. Much of this increase corrected for its major mistake: allowing Lehman Brothers to fail. After 30 years of bailing out almost all large financial firms, the Fed made the horrendous mistake of changing its policy in the midst of a recession. That set off a scramble for liquidity and heightened the public's distrust."
The smarmy, self-proclaimed "experts" both nationally and locally continue to misrepresent and/or misunderstand what has happened previously, what is currently happening, and what is quite likely to happen in the future.These economic rocket scientists are doing this out of stupidity, or cupidity in service to an arrogant worldview "progressive" agenda that purposefully subordinates the best interests of our nation and our people to the fulfillment of that agenda.
It's time to put a stop to this dangerous political, social, and economic activity.