Showing posts with label Obama economics. Show all posts
Showing posts with label Obama economics. Show all posts

Obama injects himself into the Wisconsin conflict.

WaPo reports:
"Some of what I've heard coming out of Wisconsin, where they're just making it harder for public employees to collectively bargain generally, seems like more of an assault on unions," Obama told a Milwaukee television reporter on Thursday, taking the unusual step of inviting a local TV station into the White House for a sit-down interview. "I think everybody's got to make some adjustments, but I think it's also important to recognize that public employees make enormous contributions to our states and our citizens."
Actually, that's pretty equivocal. "Seems more like"... "recognize ... enormous contributions"... blah blah blah. But that's the figurehead speaking, maintaining deniability. The important thing is that his organization is working hard on this, and Democratic Party interests are massively at stake:
The White House political operation, Organizing for America, got involved Monday, after Democratic National Committee Chairman Timothy M. Kaine, a former Virginia governor, spoke to union leaders in Madison, a party official said.

The group made phone calls, distributed messages via Twitter and Facebook, and sent e-mails to state and national lists to try to build crowds for rallies Wednesday and Thursday, a party official said.
Meanwhile...
"This is not the way you begin an 'adult conversation' in America about solutions to the fiscal challenges that are destroying jobs in our country," [House Speaker John A.] Boehner said in a statement, alluding to the president's call for civility in budget talks. "Rather than shouting down those in office who speak honestly about the challenges we face, the president and his advisers should lead."

The battle in the states underscores the deep philosophical and political divisions between Obama and Republicans over how to control spending and who should bear the costs.

By aligning himself closely with unions, Obama is siding with a core segment of the Democratic Party base - but one that has chafed in recent weeks as the president has sought to rebuild his image among centrist voters by reaching out to business leaders.
It's a tough political problem for Obama, but the truth is... it's not all about Obama. It's about the long-term power of the 2 political parties and, more important, the economic health of the states.

"There is no electronic-based cause for unintended acceleration in Toyotas," Transportation Secretary Ray LaHood tells us now.

Surprised?

Now, let's try to remember how much trouble the Obama administration caused Toyota. Here's an article from last March:
Ever since the Transportation Department stepped up pressure on Toyota over its recalls several months ago, two delicate questions have hung over regulators: Is the Obama administration trying to help the Detroit carmakers it bailed out last year by attacking Toyota? And, will those attacks lead to new trade tensions with Japan?...

“It’s doubly convenient for the Obama administration to hammer Toyota excessively,” [Weekly Asahi magazine] said. “By picking on Toyota, Mr. Obama wants to reverse his falling popularity.”
And from last February:
Akio Toyoda, the president of Toyota, was billed as the main attraction at a House hearing Wednesday into the company’s recalls of millions of cars — recalls for which he profusely apologized and took personal responsibility....

He was criticized by a representative on the committee for failing to show adequate remorse for those who had been killed in accidents involving acceleration problems.

“I extend my condolences from the deepest part of my heart,” Mr. Toyoda said.

The text of the State of the Union Address from a Democratic insider who has violated the White House embargo.

Via the National Journal.

UPDATE 1:
With their votes, [the people] determined that governing will now be a shared responsibility between parties. New laws will only pass with support from Democrats and Republicans. We will move forward together, or not at all – for the challenges we face are bigger than party, and bigger than politics.
But the challenges were "bigger than party, and bigger than politics" before, when you "move[d] forward" on your own, with only your party. Now, you're into togetherness, and it's togetherness with the party that isn't into "moving forward."
At stake right now is not who wins the next election – after all, we just had an election. 
Ha. What a lie! The next election is completely at stake. As for the last election, some of us think it was really important. But you're saying: Eh, it's over. Let's turn away from electoral politics. But we know damned well you're working on 2012, and you opponents want some attention paid to what just happened last November.

UPDATE 2:
Many people watching tonight can probably remember a time when finding a good job meant showing up at a nearby factory or a business downtown. You didn’t always need a degree, and your competition was pretty much limited to your neighbors. If you worked hard, chances are you’d have a job for life, with a decent paycheck, good benefits, and the occasional promotion....
When was that true? Who is he talking about? I'm 60 and I don't remember that ever being true.
That world has changed. And for many, the change has been painful. I’ve seen it in the shuttered windows of once booming factories, and the vacant storefronts of once busy Main Streets. I’ve heard it in the frustrations of Americans who’ve seen their paychecks dwindle or their jobs disappear – proud men and women who feel like the rules have been changed in the middle of the game....
Proud... and bitter, clinging to their guns and religion. 
What we can do – what America does better than anyone – is spark the creativity and imagination of our people. We are the nation that put cars in driveways and computers in offices; the nation of Edison and the Wright brothers; of Google and Facebook....
Edison? Can I have my incandescent light bulbs back?

UPDATE 3: I'm skipping a ton of stuff to get to health care:
Now, I’ve heard rumors that a few of you have some concerns about the new health care law. So let me be the first to say that anything can be improved. If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you. We can start right now by correcting a flaw in the legislation that has placed an unnecessary bookkeeping burden on small businesses.

What I’m not willing to do is go back to the days when insurance companies could deny someone coverage because of a pre-existing condition.
He'll work together with Republicans, but only if they offer little tweaks to the big overhaul he rammed through, with no consideration for their opinion, when they didn't hold the seats in Congress.

UPDATE 4: Hey! I'm just noticing that Obama never says "The state of the union is [?]."

And now, what will I do when the actual speech comes on television? I don't know, but I feel so liberated! I'll just give you some chit-chat about whatever strikes me. The visuals. The screw-ups. The intonations. The hints of gray...

UPDATE 5: I've put up a new post for all the real-time style-over-substance chit-chat.

2 things about the impending government takeover of medicine.

These items are side-by-side at Memeorandum:

1. In the Boston Globe, a Harvard nanophysics researcher named Mike Stopa says the term "death panels" "persists... because it denotes, in a pithy way, the economic realities of scarcity inherent in nationalizing a rapidly developing, high-technology industry on which people’s lives depend in a rather immediate way."

2. The NYT reports that "The Obama administration has become so concerned about the slowing pace of new drugs coming out of the pharmaceutical industry that officials have decided to start a billion-dollar government drug development center to help create medicines."

Life and death — it's economics, and the government is here to help.

"The nearly $1.2 billion in federal funds for high-speed rail projects that newly elected governors in Ohio and Wisconsin rejected..."

"... has been redirected to other states, with New York receiving up to $7.3 million of the amount. The money was redistributed to states in proportion to their initial high-speed rail awards...."

Wisconsin and Ohio... such important swing states in the upcoming 2012 elections.

Did it not occur to them to not spend the money? Why the insatiable urge to spend? My mother used to say, "That money is burning a hole in your pocket." But that can't be what's going on here, because they don't have any money.

It's funny the way people are trying to spin the tax deal, now, before the vote.

There's this from Ezra Klein:
If you look at the numbers alone, the tax cut deal looks to have robbed Republicans blind. The GOP got around $95 billion in tax cuts for wealthy Americans and $30 billion in estate tax cuts. Democrats got $120 billion in payroll-tax cuts, $40 billion in refundable tax credits (Earned Income Tax Credit, Child Tax Credit and education tax credits), $56 billion in unemployment insurance, and, depending on how you count it, about $180 billion (two-year cost) or $30 billion (10-year cost) in new tax incentives for businesses to invest....

.... Much of what the Obama administration wanted was not that noxious to conservatives. They were tax cuts, many of them for businesses. Indiana Gov. Mitch Daniels had previously proposed both a payroll tax cut for 2011 and the tax breaks for business investment. Republicans have frequently said that they don't even oppose unemployment insurance.
I elided 4 paragraphs for humorous effect.  The "numbers alone" skew heavily toward the Democrats only because Klein limited the Republican side to "tax cuts for the rich." He also says:
Conservatives saw the extension of the tax cuts as an important pivot point in American politics -- full stop. As my colleague Jennifer Rubin puts it, Republicans "won the philosophical point (tax hikes impede economic growth)..." The Obama administration didn't see the tax cuts as a philosophical point....
Well, that's convenient.

Greg Sargent says:
... Obama's strategy going forward will be to position himself as Washington's lone resident adult in a town full of squabbling children on right and left, and at his presser just now, Obama offered a surprisingly stern, and even angry, rebuke to his liberal critics....
This is a good stance to take for 2012. At that point, we'll see how well the tax cuts worked. If the economy improves, Obama can take credit and warn us against giving too much power to Republicans because they will overdo tax cutting for the rich instead of taking the intelligently balanced approach he brokered. If things go badly, he can say the Republicans got some power in 2010 and forced a compromise that demonstrated that their ideology is wrong.

Meanwhile, both Jim DeMint and Mary Landrieu are lambasting the deal. Landrieu says she's "going to argue forcefully for the nonsensicalness and the almost, you know, moral corruptness of" tax cuts for the rich. DeMint says:
"I’m glad the President recognizes that tax increases hurt the economy.... [b]ut ... most of us who ran this election said we were not going to vote for anything that increased the deficit.... I don’t want to second-guess my leadership, but frankly, I think we need to come away with a lot better than this. We cannot increase the deficit, or keep increasing deficit spending.."
And I'll just end this patchwork post with Rush Limbaugh....
My take is, taken by itself in its own universe, yeah, okay, pretty good.  I like the fact the left hates Obama. I like the fact they're mad at him right now.  I like the fact that nobody's taxes are going up.  But placed in the context of the shellacking and of this huge election victory, it's not nearly what we coulda gotten....
ADDED: My post title is "It's funny the way people are trying to spin the tax deal, now, before the vote." Once the legislation is passed, I assume people will say different things. Extreme claims of victory can't be made now if what you want is to get the legislation passed. And, too, different things will be said about this when 2012 rolls around.

Axelrod on Fox News Sunday.

Man, was he evasive. I'll put up the transcript later and show you what I mean. Meanwhile, Jim DeMint is on after the break. An excellent opportunity to look brilliant simply by answering the questions asked in a reasonably specific and concise manner. Axelrod seemed robotic and anesthetized. His mustache was cut shorter on one side than the other. Asked whether Obama would accept any of what the deficit commission came up with, Axelrod droned emptiness until he latched onto the topic of Nancy Pelosi, which he blathered about until Chris Wallace cut him off.

ADDED: Transcript. [Analysis coming soon!]

ACTUALLY: It's too boring to pick apart. I've got to give Axelrod that. After the break, you can read the interchange about the deficit commission that annoyed me so much.

WALLACE: ... The co-chairs of the deficit commission, Erskine Bowles and Alan Simpson, both of whom the president appointed, came out with a plan this week to cut our debt by $4 trillion over the next decade.

Will the president include some of those proposals in his budget in February?

AXELROD: Well, we're obviously very, very interested. The president empaneled this commission for purposes of looking at this very difficult problem, and we're eager to look at all the recommendations once the commission reports. And his commitment to the chairman was to not -- was to refrain from commenting on their work until after December 1st.

But obviously, we're looking for all good ideas to help deal with our long-term debt problem. This is something that is going to affect our economy. It affects our kids. And we need to deal with it.

WALLACE: You say refrain from commenting. Nancy Pelosi didn't refrain from commenting. She immediately rejected the package as, quote, "simply unacceptable." Does the president agree or disagree that this package is simply unacceptable?

AXELROD: Well, I've seen comments from the left and the right on this, Chris, in fairness.

(CROSSTALK)

WALLACE: Well, I'm asking about Nancy Pelosi.

AXELROD: ... on the -- on the -- I understand. But I'm telling you that there were comments on both sides about this. And of course, this is something that we have to confront as we move forward.

One thing I know, Nancy Pelosi had concerns that -- and I understand those concerns and I respect those concerns. The truth is that as we move forward, if one side says we can't raise any taxes on anybody or any interest, and the other side says we can't cut anything, we're obviously not going to make progress on this. And our interest is in making progress on this.

Within that, we're going to protect important equities, for sure. I mean, we shouldn't cut without sensitivity to the impact of those cuts, and certainly Social Security, which is something she's concerned about, is a great concern to us.

But we should move forward in the spirit of cooperation, because we're not going to solve this, one party or the other, alone. We have to...

WALLACE: All right.

AXELROD: ... do it together.

WALLACE: All right. I want...

AXELROD: And that's what we want to do.

"Obama Recasts Asia Trip as Jobs Mission."

The NYT headlines:
“The primary purpose is to take a bunch of U.S. companies and open up markets so that we can sell in Asia, in some of the fastest-growing markets in the world, and we can create jobs here in the United States of America,” Mr. Obama told his cabinet Thursday, with the cameras rolling.

“My hope is, is that we’ve got some specific announcements that show the connection between what we’re doing overseas and what happens here at home when it comes to job growth and economic growth,” he said....

“On the trip that I’m about to take, I’m going to be talking about opening up additional markets in places like India, so that American businesses can sell more products abroad in order to create more jobs here at home,” Mr. Obama said.
If that's recasting the point of the trip, what was it previously supposed to be about? And whatever the original purpose, why didn't Obama figure out that this would be a good thing to say before the elections?

"Obama = Keynesian?" sign makes Rally for Sanity folks insane...

... and stupid:



Via Weekly Standard.

Bleh. I don't like saying Rally for Sanity folks. Help me pick a better coinage:

What should we call the Rally to Restore Sanity folks?
Sanitarians
Sane Freaks
Reasonable People
The Enemy
Sanitizers
Sanity's Little Elves
  
pollcode.com free polls

"Obama did exactly the opposite of what should have been done" for the economy.

Said "Black Swan" author Nassim Nicholas Taleb.
"He surrounded himself with people who exacerbated the problem. You have a person who has cancer and instead of removing the cancer, you give him tranquilizers. When you give tranquilizers to a cancer patient, they feel better but the cancer gets worse."
This medical metaphor makes me think of Obama's old red pill/blue pill scenario from the summer of 2009:
What I've proposed is that we have a panel of medical experts that are making determinations about what protocols are appropriate for what diseases. There's going to be some disagreement, but if there's broad agreement that, in this situation the blue pill works better than the red pill, and it turns out the blue pills are half as expensive as the red pill, then we want to make sure that doctors and patients have that information available to them.
Some people read that as "death panels" — that is, that what the government would really do is give cheap, painkilling pills and wait for death to extinguish the expense altogether. So: "When you give tranquilizers to a cancer patient, they feel better but the cancer gets worse." That might be something some people would want to do.

There are inferences other than ineptitude.

President Obama's back to school speech contained blatant lies...

... and if there were any students not bright enough to notice that they were hearing lies, the lies, in their particular cases, were, ironically, bigger lies. Check it out:
Nobody gets to write your destiny but you. Your future is in your hands. Your life is what you make of it. And nothing -- absolutely nothing -- is beyond your reach, so long as you’re willing to dream big, so long as you’re willing to work hard. So long as you’re willing to stay focused on your education, there is not a single thing that any of you cannot accomplish, not a single thing. I believe that.
If you believe that, you are so dumb that your chances of controlling your own destiny are especially small. But it's absurd to tell kids that if only they dream big, work hard, and get an education, they can have anything they want. Do you know what kind of dream job kids today have?  A recent Marist poll showed that 32% would like to be an actor/actress. 29% want to be a professional athlete.  13% want to be President of the United States.  That's not going to happen.

Even young people with more modest dreams — like getting a decent law job after getting good grades at an excellent law school — are not getting what they want. To say "nothing -- absolutely nothing -- is beyond your reach" is a blatant lie, and Barack Obama knows that very well. The assertion "I believe that" is on the level of Tommy Flanagan, the Pathological Liar, adding "Yeahhh! That's the ticket!"

And even if economic times were not so miserable, Barack Obama's political philosophy would not be "Your future is in your hands. Your life is what you make of it." That's the sort of thing Rush Limbaugh likes to say. If Obama believed that, he'd be all about reducing the role of government and unleashing private enterprise. He'd be a big right winger. Does he look at a poor person and say, his life is what he made it? Of course not.

Obama isn't rounding to the nearest billion dollars. He's not even rounding to the nearest 10 billion.

CNN: "Obama pushes $50 billion in infrastructure spending."

WaPo: "Obama to call for $100 billion business tax credit."

He's rounding to the nearest 50 billion dollars.

It's utterly terrifying. I keep seeing articles about how the Democrats are in a panic about the approaching elections. They should have panicked over their own proposals.

"U.S. Lost Jobs in August, but Fewer Than Expected."

A NYT headline. 

What will it take for the media to notice how pathetically laughable it is to say the bad news is better than what was expected? How long will this go on? It's getting surreal!

UPDATE: Obama reacts:
“This morning, new figures show the economy produced 67,000 private sector jobs in August, the eighth consecutive month of private job growth. Additionally, the numbers for July were revised upward to 107,000. Now that's positive news, and it reflects the steps we've already taken to break the back of this recession.”
Surreal!

Christina Romer, mystified.

Saying her good-byes.
When she and her colleagues [on the Council of Economic Advisers] began work, she acknowledged, they did not realize "how quickly and strongly the financial crisis would affect the economy." They "failed to anticipate just how violent the recession would be."

Even now, Romer said, mystery persists. "To this day, economists don't fully understand why firms cut production as much as they did or why they cut labor so much more than they normally would." Her defense was that "almost all analysts were surprised by the violent reaction."
Yes, we've noticed that every damned thing that happens is declared "unexpected."
That miscalculation, in turn...
What miscalculation?
... led to her miscalculation that the stimulus package would be enough to keep the unemployment rate from exceeding 8 percent. Without the policy, she had predicted, unemployment would soar to 9.5 percent. The plan passed, and unemployment went to 10 percent.
Unexpectedly and mystifyingly, it was quite a surprise.
No wonder most Americans think the effort failed. But Romer argued, a bit too defensively, against the majority perception. "As the Council of Economic Advisers has documented in a series of reports to Congress, there is widespread agreement that the act is broadly on track," she declared. 
The act is broadly on track is a helpful thing to believe if you want to experience every bit of bad news as a surprise.
Further, she argued, "I will never regret trying to put analysis and quantitative estimates behind our policy recommendations."
What?! I guess Romer, writing her speech, didn't predict the embarrassing ways those words would could be read. Surprise! Among the negative interpretations available for those words are: 1. They started with the policy preferences, then rustled up the numbers to support it, and 2. They had to choose what to put first, policy choices or professional analysis, and they chose policy choices.
But the problem is not that Romer did a quantitative analysis; the problem is that the quantitative analysis was wrong.
Well, if you did the quantitative analysis in order to support the policy preference you put first, then it's not... surprising that that your quantitative analysis was second-rate.

Obama is more like Reagan than Carter, says Mark Schmitt.

But he needs the economy to recover so we can perceive it.
Reagan recovered... in time for the "Morning in America" election of 1984. And so we naturally forget those days when he seemed doomed to be the fifth consecutive president to leave office a failure, rather than the first since Eisenhower to complete two terms and leave more or less respected. (I was kind of shocked to learn of the magnitude of Reagan's slump myself, although I was alive and politically aware at the time.) He recovered not because of his message or his political operation... but because the economy recovered.
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