Obama: A Keynesian, Not a Communist
by Gary North: Liberal
PBS Runs an Article on Government Default
"It is said
that if you know your enemies and know yourself, you will not be
imperiled in a hundred battles; if you do not know your enemies
but do know yourself, you will win one and lose one; if you do not
know your enemies nor yourself, you will be imperiled in every single
battle." ~ Sun Tzu
Step one: know
State of the Union address was long: 11 pages, single-spaced.
It was standard
stuff: a laundry list of Keynesian programs, few of which will get
by the House of Representatives. It was an exercise in futility.
He began his
laundry list with economic inequality, as a good Progressive always
does. "But we gather here knowing that there are millions of Americans
whose hard work and dedication have not yet been rewarded. Our economy
is adding jobs – but too many people still can't find full-time
employment. Corporate profits have skyrocketed to all-time highs
– but for more than a decade, wages and incomes have barely budged."
to the middle class, as every politician does. "It is our generation's
task, then, to reignite the true engine of America's economic growth
– a rising, thriving middle class. (Applause.)" This is where the
votes are. Then came bipartisan platitudes:
is our unfinished task to restore the basic bargain that built this
country – the idea that if you work hard and meet your responsibilities,
you can get ahead, no matter where you come from, no matter what
you look like, or who you love. It is our unfinished task to make
sure that this government works on behalf of the many, and not just
the few; that it encourages free enterprise, rewards individual
initiative, and opens the doors of opportunity to every child across
this great nation. (Applause.)
here. Why people say he is a Communist baffles me. He is a Keynesian.
They all are.
American people don't expect government to solve every problem.
They don't expect those of us in this chamber to agree on every
issue. But they do expect us to put the nation's interests before
party. (Applause.) They do expect us to forge reasonable compromise
where we can. For they know that America moves forward only when
we do so together, and that the responsibility of improving this
union remains the task of us all.
This is Sam
Rayburn's politics: "Go along to get along."
He talked about the federal deficit. He lied. He said they have
reduced the deficit. "Over the last few years, both parties have
worked together to reduce the deficit by more than $2.5 trillion
– mostly through spending cuts, but also by raising tax rates on
the wealthiest 1 percent of Americans." Reduce the deficit? It runs
$1 trillion a year. Nobody has done anything to reduce it. As for
spending cuts, both parties are trying to get out of the sequestration
cuts that will hit in March.
"As a result,
we are more than halfway towards the goal of $4 trillion in deficit
reduction that economists say we need to stabilize our finances."
At $1 trillion a year, the crisis is inevitable.
But he wants
out of the 2011 deal.
2011, Congress passed a law saying that if both parties couldn't
agree on a plan to reach our deficit goal, about a trillion dollars'
worth of budget cuts would automatically go into effect this year.
These sudden, harsh, arbitrary cuts would jeopardize our military
readiness. They'd devastate priorities like education, and energy,
and medical research. They would certainly slow our recovery, and
cost us hundreds of thousands of jobs. That's why Democrats, Republicans,
business leaders, and economists have already said that these cuts,
known here in Washington as the sequester, are a really bad idea.
today, deficits forever. It's kick the can.
identified the #1 problem: Medicare.
the biggest driver of our long-term debt is the rising cost of health
care for an aging population. And those of us who care deeply about
programs like Medicare must embrace the need for modest reforms
– otherwise, our retirement programs will crowd out the investments
we need for our children, and jeopardize the promise of a secure
retirement for future generations.
Tax the rich . . . the universal solution for Democrats.
we can't ask senior citizens and working families to shoulder the
entire burden of deficit reduction while asking nothing more from
the wealthiest and the most powerful. (Applause.) We won't grow
the middle class simply by shifting the cost of health care or college
onto families that are already struggling, or by forcing communities
to lay off more teachers and more cops and more firefighters. Most
Americans – Democrats, Republicans, and independents – understand
that we can't just cut our way to prosperity. They know that broad-based
economic growth requires a balanced approach to deficit reduction,
with spending cuts and revenue, and with everybody doing their fair
share. And that's the approach I offer tonight.
He says he
will go with Simspon-Bowles. Really? Why now? Why not when it was
proposed in 2010? Why did he oppose
it? Why did the Democrats in Congress oppose it?
Medicare, I'm prepared to enact reforms that will achieve the same
amount of health care savings by the beginning of the next decade
as the reforms proposed by the bipartisan Simpson-Bowles commission.
stick it to the rich!
the Affordable Care Act is helping to slow the growth of health
care costs. (Applause.) And the reforms I'm proposing go even further.
We'll reduce taxpayer subsidies to prescription drug companies and
ask more from the wealthiest seniors. (Applause.) We'll bring down
costs by changing the way our government pays for Medicare, because
our medical bills shouldn't be based on the number of tests ordered
or days spent in the hospital; they should be based on the quality
of care that our seniors receive. (Applause.) And I am open to additional
reforms from both parties, so long as they don't violate the guarantee
of a secure retirement. Our government shouldn't make promises we
cannot keep – but we must keep the promises we've already made.
And how will
this be done? The system is a gigantic squid. Why now? What's new?
hit the rest of our deficit reduction target, we should do what
leaders in both parties have already suggested, and save hundreds
of billions of dollars by getting rid of tax loopholes and deductions
for the well-off and the well-connected. After all, why would we
choose to make deeper cuts to education and Medicare just to protect
special interest tax breaks? How is that fair? Why is it that deficit
reduction is a big emergency justifying making cuts in Social Security
benefits but not closing some loopholes? How does that promote growth?
In short, raise
The real deficit
is $222 trillion. He never
mentioned that. They never do.
Then he returned
to that old favorite, a simplified tax code.
is our best chance for bipartisan, comprehensive tax reform that
encourages job creation and helps bring down the deficit. (Applause.)
We can get this done. The American people deserve a tax code that
helps small businesses spend less time filling out complicated forms,
and more time expanding and hiring – a tax code that ensures billionaires
with high-powered accountants can't work the system and pay a lower
rate than their hardworking secretaries; a tax code that lowers
incentives to move jobs overseas, and lowers tax rates for businesses
and manufacturers that are creating jobs right here in the United
States of America. That's what tax reform can deliver. That's what
we can do together. (Applause.)
We have waited
He called for
bipartisanship. That means "do it my way."
realize that tax reform and entitlement reform will not be easy.
The politics will be hard for both sides. None of us will get 100
percent of what we want. But the alternative will cost us jobs,
hurt our economy, visit hardship on millions of hardworking Americans.
So let's set party interests aside and work to pass a budget that
replaces reckless cuts with smart savings and wise investments in
our future. And let's do it without the brinksmanship that stresses
consumers and scares off investors. (Applause.) The greatest nation
on Earth cannot keep conducting its business by drifting from one
manufactured crisis to the next. (Applause.) We can't do it.
In short, no
more debt ceiling battles. Capitulate! But the question is:
How to avoid these battles? No one knows.
agree right here, right now to keep the people's government open,
and pay our bills on time, and always uphold the full faith and
credit of the United States of America. (Applause.) The American
people have worked too hard, for too long, rebuilding from one crisis
to see their elected officials cause another. (Applause.)
"Let us kick the can!" We must create jobs. How? By government action.
Government creates jobs.
tonight, I'll lay out additional proposals that are fully paid for
and fully consistent with the budget framework both parties agreed
to just 18 months ago. Let me repeat – nothing I'm proposing tonight
should increase our deficit by a single dime.
And pigs can
is not a bigger government we need, but a smarter government that
sets priorities and invests in broad-based growth. (Applause.) That's
what we should be looking for.
why we face a $222 trillion deficit is because of big government.
It will get much bigger unless it defaults, which it will.
first priority is making America a magnet for new jobs and manufacturing.
After shedding jobs for more than 10 years, our manufacturers have
added about 500,000 jobs over the past three. Caterpillar is bringing
jobs back from Japan. Ford is bringing jobs back from Mexico. And
this year, Apple will start making Macs in America again. (Applause.)
This has been
going on for 35
years. What will reverse it?
are things we can do, right now, to accelerate this trend. Last
year, we created our first manufacturing innovation institute in
Youngstown, Ohio. A once-shuttered warehouse is now a state-of-the
art lab where new workers are mastering the 3D printing that has
the potential to revolutionize the way we make almost everything.
There's no reason this can't happen in other towns. So tonight,
I'm announcing the launch of three more of these manufacturing hubs,
where businesses will partner with the Department of Defense and
Energy to turn regions left behind by globalization into global
centers of high-tech jobs. And I ask this Congress to help create
a network of 15 of these hubs and guarantee that the next revolution
in manufacturing is made right here in America. We can get that
We must bankroll
science: the drug industry.
if we want to make the best products, we also have to invest in
the best ideas. Every dollar we invested to map the human genome
returned $140 to our economy – every dollar. Today, our scientists
are mapping the human brain to unlock the answers to Alzheimer's.
They're developing drugs to regenerate damaged organs; devising
new material to make batteries 10 times more powerful. Now is not
the time to gut these job-creating investments in science and innovation.
Now is the time to reach a level of research and development not
seen since the height of the Space Race. We need to make those investments.
Why won't the
free market make these investments?
The man is
boondoggles! More Solyndras!
no area holds more promise than our investments in American energy.
After years of talking about it, we're finally poised to control
our own energy future. We produce more oil at home than we have
in 15 years. (Applause.)
We must reduce
carbon emissions. We must fight what used to be called global warming,
before we had a decade of stable temperatures.
for the sake of our children and our future, we must do more to
combat climate change. (Applause.) Now, it's true that no single
event makes a trend. But the fact is the 12 hottest years on record
have all come in the last 15. Heat waves, droughts, wildfires, floods
– all are now more frequent and more intense. We can choose to believe
that Superstorm Sandy, and the most severe drought in decades, and
the worst wildfires some states have ever seen were all just a freak
coincidence. Or we can choose to believe in the overwhelming judgment
of science – and act before it's too late. (Applause.)
So, it's the
same old story. He has not learned. The public has caught on. The
scare is fake. But the intellectual class believes it's real.
The man is
a standard liberal. He is not a Communist.
the rest of the article
North [send him mail]
is the author of Mises
on Money. Visit http://www.garynorth.com.
He is also the author of a free 31-volume series, An
Economic Commentary on the Bible.
2013 Gary North
Best of Gary North