Larry Summers Places The Bar at an All Time Low For Obama’s Economic Policies

By Caomhin

Larry Summers, Obama’s chief economic director, continues to help lower the bar for his new boss, today asserting that Obama will have achieved success by making a promise….to keep the unemployment rate below 10%.  Considering that there is debate and some evidence that we may already be experiencing some recovery, including a thawing of the credit markets, that is an unbelievably low target for which to aim.  Currently at 7.2%, what the administration in waiting in saying is that if they stop unemployment by growing another 38.9% to an overall level of 10%, they will have achieved success.

It is not a secret that I have little faith in the economic strategies adopted by the Democratic Party.  Massive bailouts will achieve nothing but a massive tax hike in our future.  To think that the gigantic deficits we are amassing will only be funded by tax cuts on the upper class is preposterous.  We will see a slowdown in private investment, a slowdown in the creation of small businesses, and an extremely large expansion of the Federal Government, one of the most inefficient organizations operating in America and the most difficult to scale down.  Whatever little short-term help these policies may provide will have far more damaging results in the long-run, but then, elections aren’t won in the long-run and we have precious few statesmen left.

Summer’s assertion that Obama will achieve economic victory by keeping the inflation rate below 10% is troubling on many levels.  First, it illustrates that the massive spending spree that the Obama administration will embark upon will not work, unemployment will continue to grow.  Second, even an increase in unemployment will be viewed as acceptable if you are to believe this assessment if unemployment does not reach 10%.  That’s hardly change in which you can believe.  Yet, you can rest assured, this 10% threshold will be the one in which he makes his benchmark comparison to the jobs he will “create or save” with his economic policies.  Third, having such a large variation in the figures that the new administration will be working with, then the inevitable conclusion is that his advisors have little to no handle on the how the economy is truly functioning.  Rather than consult with small business people, consumers, CEOs, distributors, etc., they are consulting career politicians and bureaucrats.  Should this continue, then expect to see that bar drawn ever lower.


2 Responses to “Larry Summers Places The Bar at an All Time Low For Obama’s Economic Policies”

  1. 1 Massively Flawed Democratic Spending Frenzy Passes « Trackback on January 29, 2009 at 1:55 am
  2. 2 Rendell, PA Democrats Looking to Raise Taxes « Trackback on May 30, 2009 at 2:25 pm

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