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Obama & Ben Bernanke’s Failed ‘Trickle Down’ Economics

September 14, 2012

‘Trickle down fairy dust does not work.’  That’s exactly what President Obama has been saying arguing that low taxes and less regulation doesn’t do enough to ‘share prosperity’.  Yet, ‘trickle down’ economics is the best way to categorize Fed Chairman Ben Bernanke’s most recent installment of Quantitative Easing or QE3.

By promising to pump $40 billion into the market buying mortgage-backed securities ‘indefinitely’ the Fed has not only moved to devalue our currency, the Obama Administration has backed a monetary policy that essentially provides government support to large corporations and well-to-do investors in the hopes of that economic boost will eventually translate into new jobs and economic growth.

From NPR (not exactly a right-wing, red-meat news source):

Bernanke was also pressed about the kind of effect this policy would have on Main Street.  Essentially, one reporter said, this policy translates to trickle down economics.  The banks are given more money and the Fed hopes that loans will trickle down to the rest of America.

The Obama Administration chastises free market advocates of supporting ‘trickle down’ economics because we do not believe in high tax burdens and regulations that strangle entrepreneurs.  Free market advocates do not want special deals from government, we oppose crony capitalism and we oppose government subsidies that pick winners and losers in the market place.  In short, we want government to get out of the way.

Economists argue it is uncertainty in the market place from an increasing tax burden, such as the 18 new taxes in ObamaCare and a massive new regulatory burdens that makes it impossible for business to plan for the future.  When business cannot budget for future tax liabilities, regulatory compliance costs, health care costs and so on, business cannot budget for expansion.  The uncertainty of the Obama Economy is the number one driver of our economic malaise.

Now the Obama Administration is looking to a short-term monetary fix by moving the Fed to pumping new money into the economy by propping up the banking sector and creating a false expansion of the investment economy.

When Chairman Bernanke states he wants 401k’s and housing prices to grow their dollar value he conveniently leaves off the value of the dollar is declining.  Because of QE3 home values and investments may see gains, but they will be negated by a devalued dollar.  Bernanke and the Obam

‘Trickle down fairy dust does not work.’  That’s exactly what President Obama has been saying arguing that low taxes and less regulation doesn’t do enough to ‘share prosperity’.  Yet, ‘trickle down’ economics is the best way to categorize Fed Chairman Ben Bernanke’s most recent installment of Quantitative Easing or QE3.

 

By promising to pump $40 billion into the market buying mortgage-backed securities ‘indefinitely’ the Fed has not only moved to devalue our currency, the Obama Administration has backed a monetary policy that essentially provides government support to large corporations and well-to-do investors in the hopes of that economic boost will eventually translate into new jobs and economic growth.

 

From NPR (not exactly a right-wing, red-meat news source):

 

Bernanke was also pressed about the kind of effect this policy would have on Main Street.  Essentially, one reporter said, this policy translates to trickle down economics.  The banks are given more money and the Fed hopes that loans will trickle down to the rest of America.

 

The Obama Administration chastises free market advocates of supporting ‘trickle down’ economics because we do not believe in high tax burdens and regulations that strangle entrepreneurs.  Free market advocates do not want special deals from government, we oppose crony capitalism and we oppose government subsidies that pick winners and losers in the market place.  In short, we want government to get out of the way.

 

Economists argue it is uncertainty in the market place from an increasing tax burden, such as the 18 new taxes in ObamaCare and a massive new regulatory burdens that makes it impossible for business to plan for the future.  When business cannot budget for future tax liabilities, regulatory compliance costs, health care costs and so on, business cannot budget for expansion.  The uncertainty of the Obama Economy is the number one driver of our economic malaise.

 

Now the Obama Administration is looking to a short-term monetary fix by moving the Fed to pumping new money into the economy by propping up the banking sector and creating a false expansion of the investment economy.

 

When Chairman Bernanke states he wants 401k’s and housing prices to grow their dollar value he conveniently leaves off the value of the dollar is declining.  Because of QE3 home values and investments may see gains, but they will be negated by a devalued dollar.  Bernanke and the Obama Administration are following a policy of manipulation.  Manipulate people into believing their net worth has risen but ignore the long-term consequences of government borrowing and printing more money.

 

Obama’s version of trickle-down economics; where government gets more involved in the market place in an attempt to manipulate the market and the American people is bad economic policy and will only lead to greater economic uncertainly in the long run.

a Administration are following a policy of manipulation.  Manipulate people into believing their net worth has risen but ignore the long-term consequences of government borrowing and printing more money.

Obama’s version of trickle-down economics; where government gets more involved in the market place in an attempt to manipulate the market and the American people is bad economic policy and will only lead to greater economic uncertainly in the long run.

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