Wednesday, June 17, 2009

Obama Stimulus A Disaster

Below is the graph provided by Obama to justify spending $787 billion to "stimulate" the economy. As conservative economists predicted, we would have been much better off NOT PASSING the bill. No Republicans in Congress voted for the plan. Only three Republican Senators voted to support the Obama plan.

And this is why. Conservatives predicted the so called "stimulus" would only make things worse. And it has.

The light blue curve is what would have happened if the economy and the banks had been allowed to work out the problems through normal free enterprise processes and no stimulus had been passed. The dark blue curve is the usual Keynesian prediction of better results with government intervention... which has never improved things no matter how many times it has been tried. (Remember, this graph is the actual data provided by Obama to justify the stimulus. This is Obama's plan.)

The red dots show the actual unemployment consequences due to sabotaging our economy with government intervention. That is what we are really getting. A disaster.

Why will Democrats NEVER allow the business cycle to work through these things? Why do they always insist we have to intervene and thus make them worse? No recession ever became the horrible depression of the 30s until Democrats insisted that they had to fix the problems. They made the problems worse then. They are making the problems worse now. Their own graphs prove it. Yet they repeatedly insist that WE HAVE TO INTERVENE.

Thanks to National Review for the graph. Click on the title above to see their original article.


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