President Obama’s gyroscopic legislative endeavors helped the nation survive the worst financial crisis since the 1930’s. It would have been unfathomable to risk America’s image of economic invincibility and allow the free markets to punish bad behavior. Instead, the Federal Reserve printed money to inflate the stock market and promote economic growth, all courtesy of a low interest rate environment. Now Congress is faced with yet another debt ceiling, and sure enough, they’re scrambling for the next fiscal stunt.
The unpopular stimulus package, albeit a short-term solution, created up to 2.1 million jobsthat may have prevented a depression. Real estate agents rejoiced at the $8,000 first time home buyer credit and state governors used contemptuous contemptuous federal handouts to balance budgetslater fashioned as dexterous fiscal stewardship. Wall Street bailouts, unemployment benefits and unfunded military ventures were all the rage; the glass house falling victim to the blunt force of capitalism.
While the military continues its search for more terrorists, Santa Claus struts through the halls of Congress in plain sight, soliciting public money for distribution to prized constituents in the form of counterproductive tax cuts, corporate welfare and social programs. To nobody’s surprise, the debt ceiling was reached last week and the treasury had already identified ways to adjourn the day of reckoning, this time dipping into public pension fundsto close the gap.
In years past, these cosmetic strategies would have passed as successful laissez faire remedies. President Reagan took office during a period of slow economic growth, and despite his many accomplishments, increased the national debt by 189 percent(a 60 percent spike as a percent of GDP) and changed the way CPI was calculatedto mask the true rate of inflation.