For all their puffery about how magnificently smart they are, the administration has turned out to be a bunch of bunglers. They got virtually nothing right; the country continues to suffer because they insist on living in some left wing fantasy where the real world’s rules don’t apply.
One of their conceits was that they would be so much better than Bush, because Bush never listened to anyone else. They would consult all the world’s greatest people, and then make rational, fact based decisions.
But it has turned out to be just the opposite. The reason they complained that Bush never consulted anyone is because Bush never consulted anyone in the leftist universities, or the Democratic party controlled state department. He was always consulting people. Just not the people they who insisted on being consulted.
So in comes the new crowd, and now Obama gets advice from the universities. From wackos like Paul Krugman, who I swear is a bean short of a full load. The wackos from the universities are flooding the White House with advice, and what is the result?
Incompetence, bungling. A lack of connection to the real world.
The administration’s stimulus program has failed. Growth is slow and unemployment remains high. The president, his friends and advisers talk endlessly about the circumstances they inherited as a way of avoiding responsibility for the 18 months for which they are responsible.
But they want new stimulus measures—which is convincing evidence that they too recognize that the earlier measures failed. And so the U.S. was odd-man out at the G-20 meeting over the weekend, continuing to call for more government spending in the face of European resistance.
The contrast with President Reagan’s antirecession and pro-growth measures in 1981 is striking. Reagan reduced marginal and corporate tax rates and slowed the growth of nondefense spending. Recovery began about a year later. After 18 months, the economy grew more than 9% and it continued to expand above trend rates.
Two overarching reasons explain the failure of Obamanomics. First, administration economists and their outside supporters neglected the longer-term costs and consequences of their actions. Second, the administration and Congress have through their deeds and words heightened uncertainty about the economic future. High uncertainty is the enemy of investment and growth.
They have come to bury the free market, not praise it. That’s why they are bungling so badly.