How Obama will fundamentally change the US, step 1

MenInTights

not a plastic bag
#2
Could not agree more. I used to post this chart a lot last year:


Those were the good ole days. Back when we used to freak out b/c Obama was only going to put us 1.2T in the hole for 2010.

One thing about Obama the campaigner I liked: PAYGO. Clearly Obama doesn't give a damn about that. Actually, I think he does and will enforce it after the spending is in place.


EDIT:
Actually the 2010 deficient numbers will be adjusted radically down at the end of the year. There was a story in the WSJ a few weeks ago about the Bush tax miracle coming in 2010. If I remember right, the last day to turn a 401K into a Roth IRA is 12/30/10. This is going to cause a rush of retirement accounts to roll over at the end of the year, forcing the one time tax and raising a ton of money. Lets just hope Obama didn't read the article or that money will be spent long before it arrives.
Just remember, there's a ton of money coming that we could have used pay down some of this monstrosity or pay back TARP. The current administration gives me little hope it won't be spent long before it arrives however. :-/
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EDIT Again:
This is the article I was talking about:
George W. Bush's 2010 Tax Miracle - WSJ.com

Thank you, President Bush. A voluntary tax(I'm cool with those) on the wealthy that could raise hundreds of billions of revenue and keep us from becoming Greece just yet. Brilliant move, sir.
 
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SmilinSilhouette

Registered Member
#3
First the massive spending must be completed, then the PAYGO rhetoric will be ressurected. That along with class warfare. Woo Hoo divide & conquer! Never thought the POTUS would declare war on the very citizens that fund government.
 

Sim

Registered Member
#7
It's a loss-loss situation for Obama.

If he didn't spend so much but save instead, people would blame him for an even worse situation on the labor market and regarding growth, blaming him because "he does nothing to stimulate the economy during crisis, but even prolongs it".

It's simply not easy to become popular when governing during economic crisis.

At any rate, what we see economically these days, on both sides of the Atlantic, is worrying me. Something tells me we (you and I, not Obama or Cameron or Merkel) won't have to wait too long before we get the paycheck.
 

CaptainObvious

Son of Liberty
V.I.P.
#8
I disagree completely. We haven't had an economic situation nearly as bad as during and after the Carter admonistration and Reagan not only did a pretty good job of getting us out, he was pretty popular in doing so.

EDIT: I should add there are lots of things Obama could be doing to improve our economy (or at least give it a shot) none of which he has done however.
 
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Sim

Registered Member
#9
I disagree completely. We haven't had an economic situation nearly as bad as during and after the Carter admonistration and Reagan not only did a pretty good job of getting us out, he was pretty popular in doing so.
I don't think that recession was as bad as the one today. I don't remember having read the situation on the financial sector and budget was remotely as critical back then, it was just a medium-sized recession.

I could be wrong, but I think the improvement under Reagan was not so much because of his policies, but the worst was over already when he took office and it was only matter of time until things would improve again. Doesn't mean his policies were necessarily bad, of course.

Today's recession (possibly even depression) is more on par with the one in the 1930s, when it comes to structural problems and magnitude, I'm afraid.
 

CaptainObvious

Son of Liberty
V.I.P.
#10
I don't think that recession was as bad as the one today. I don't remember having read the situation on the financial sector and budget was remotely as critical back then, it was just a medium-sized recession.

I could be wrong, but I think the improvement under Reagan was not so much because of his policies, but the worst was over already when he took office and it was only matter of time until things would improve again. Doesn't mean his policies were necessarily bad, of course.

Today's recession (possibly even depression) is more on par with the one in the 1930s, when it comes to structural problems and magnitude, I'm afraid.
Not even close, unemployment was at about 14%, mortgage interest rates was at 21%, price controls created double digit inflation...the 1970's was far far worse than what we're going through now.

The worst wasn't over when he took office, it was at it's peak. It could have been far far worse had Carter been reelected.