Posted by
preservefreedom on Monday, February 09, 2009 8:38:41 PM
In Obama's news conference tonight, he made reference to FDR and Japan's economic troubles in the 1990's. Here are the facts:
FDR's own treasury secretary, Henry Morgenthau, recognized that FDR’s own "stimulus spending" plans did not work. Morgenthau talked about the New Deal in a 1939 interview. He was quoted as saying, ‘We are spending more money than we have ever spent before, and it does not work”....”We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started and an enormous debt, to boot..”
In regards to Japan, between 1992 and 2000, Japan implemented 10 separate spending stimulus packages in which public infra¬structure investment was a major compo¬nent. Excluding the 2000 program, for which final costs are not yet available, addi¬tional spending on the infrastructure com¬ponent alone amounted to 30.4 trillion yen, or $254 billion at the current exchange rate." Because of this government intervention, Japan went through a 10 year recession.
Here is a basic fundamental of economics: Recessions are a necessary component of any free market society. Markets naturally go up and down. A recession is a normal and necessary correction that must take place from time to time. If recognized as such, the economy will rebound and enter a "phase" of growth.
However, when we have a liberal majority in our legislature and a radical, incompetent president accompanied by a wealth-bating, crisis chasing media, we get government intrusion which will prolong the the inevitable "phase" known as a recession.