Tuesday, January 26, 2010

NOOOooo !!!

Krugman will blow a fuse. What is President Obama thinking ?

Obama Seeks Freeze on Many Domestic Programs

”President Obama will call for a three-year freeze in spending on many domestic programs, and for increases no greater than inflation after that, an initiative intended to signal his seriousness about cutting the budget deficit, administration officials said Monday. “

I’ve already seen Robert Reich on TV trying to explain that -- right now -- the Federal government is the “spender of last resort”. I agree with this line of reasoning and I don’t really think that it is that hard to understand. Businesses aren’t spending money. Heck, the banks aren’t even loaning any. Workers are not spending. The people that represent the 10% unemployed sure aren’t spending. The States are in such bad shape that they are laying off teachers and police officers. The only entity that can “prime the pump” on the economy is the Federal Government.

Are we really doomed to repeat history ? The only thing that will cut the deficit is a growing economy. We won’t “freeze” our way out of this. The only way to expand the economy is to put people back to work. Even if we have to have a massive jobs program. We will not prosper with 10% unemployment.

It doesn’t make sense economically and it doesn’t make sense politically. The Republicans are not going to play ball with the Democrats.

”Republicans were quick to mock the freeze proposal. “Given Washington Democrats’ unprecedented spending binge, this is like announcing you’re going on a diet after winning a pie-eating contest. “

This Republican Party will never do anything but obstruct President Obama. So what is President Obama thinking ?

And for those controllers out there that don’t care...

”The freeze would cover the agencies and programs for which Congress allocates specific budgets each year, including air traffic control, farm subsidies, education, nutrition and national parks.“

Do you care now ? While I’m here, do you ever notice how often air traffic control comes up when the talk about government gets serious ? Air traffic controllers remind me of the current Congressional Democrats. They’ve got all the power in the world but they can’t get their act together long enough to use it.

Maybe a double dip recession or a second set of imposed work rules will wake people up. The first one doesn’t seem to have done the job.

Don Brown
January 26, 2010


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