Clint Bolick, director of the Goldwater Institute Scharf-Norton Center for Constitutional Litigation makes some good points about Obamanomics here. Including:
I think I understand Obamanomics. I buy a yacht that I can’t afford. I
default on the loan. The bill is sent to my children and future
grandchildren (and to yours). The best part: I get to keep sailing.Obamanomics
is the New Deal on steroids. At the same time the administration
pursues a gargantuan bailout, it is pushing massive new government
entitlements, shrinkage of the private sector (such as the virtual
wipe-out of the private student loan sector), and huge tax increases.
The Arizona Republic’s Bob Robb reports
that Obama’s budget forecasts a deficit that is a larger share (67
percent) of the Gross Domestic Product than at any time in over 50
years. And that is only if Obama does not add any additional new
government programs–fat chance of that.Little wonder that Sen. Jon Kyl aptly called the budget “terrifying” and “mind-boggling.”
CNBC financial analyst Jim Cramer, who supported Obama’s election,
called the president’s agenda “a declaration of hostility toward
capitalists.”
While there is much to agree with in Clint’s analysis, Roy Cordato explains here that the reference to children and grandchildren paying for the spending is in fact a myth.
As the story goes, we are shifting the costs of
this massive spending scheme to our children. While this sounds like it
makes sense, it is in fact a myth. More than that, it would be
impossible to shift costs in this way.Neither the government, nor anyone else, can spend future dollars. In
reality, all current spending must come from current revenues and can
utilize only current resources. Every dollar that the government
spends, even if borrowed, has to come out of some existing person’s
pocket and therefore preempts the use of that dollar somewhere else in
the economy — not in the future, but in the here and now.
