06/13/2012 14 Comments
Steven Frisch wrote this on another local blog, known for promoting the color purple.
President Obama inherited an economy in worse shape than at any time since 1933. Economic historians will look back on this time as equally as disruptive as the Depression, and it is going to take a long time to dig out. And the policies of both Republicans and Democrats are responsible for the situation–but the lions hare of the problem can be laid squarely at the Republicans feet.
I am not sure that I agree that this is the worst economy since 1933. According to historian Scott Reynolds Nelson todays economic crisis looks more like the Long Depression of 1873, when times were much worse. It started with a banking crisis and insolvent mortgages and the failure of complex financial instruments which quickly spread through out the entire economy. I guess that sounds familiar. It was a time of creative destruction and it took a long time to recover. The 1933 recovery was shortened by WWII, and we do not have WWIII in the wings to shorten the current crisis.
My point of agreement is that both Democrat and Republican were responsible for the current economic situation we are in. The Democrat Congress created the mortgage crisis and the Republican’s spent more money than was coming in as they tried to buy votes like tax and spend Democrats. It did not work, it only created more debt. So, we can agree that both Republican and Democrats are responsible for the current economic crisis, spending more than was coming in and borrowing to cover the gap between spending and revenue. An unsustainable situation.
What we may not agree on is that the corrective measures that President Obama has attempted to apply have not worked. In fact they have made the problem even worse, delaying the recovery. No nation has taxes it self to economic recovery, the only measure that has proven successful is austerity.
Will the Republican’s do any better when they keep the House, win the Senate and White House. Not likely, unless “we the people” hold their feet to the promises they made to cut spending and reduce the size of government. The problem is that once politicians get access of other people money, they seem to lose control.
It will be out job, “we the people”, to be the adults and demand the our political leaders take action to stop spending and reduce the size of government. Yes, they will threaten us with the loss of benefits, but there are multiple useless agencies that have to go first. Return the control of education to the states and get rid the Department of Education. The Energy Department has failed in it mission to reduce our dependency on foreign oil and needs to go, and if Congress cut off the Agriculture subsides, we will not need a Department of Agriculture. Getting the EPA out of the global warming reduction business will enable them to reduce staff and just focus on the environmental dangers that will kill us. Once that is done then we can talk about benefit reduction.
I am hoping that Mr Frisch can agree on some of these changes. What about you?