Obama’s Failed Response to the Downgrade and the Outlook for Fixing America’s Spending Crisis
BigGovernment.com
by Dan Mitchell
Posted Aug 8th 2011 at 12:53 pm
President Obama just spoke about the downgrade and his remarks were very disappointing. He uttered some empty platitudes, offered no plan, (amazingly) called for more government spending, and continued his advocacy of class-warfare taxation.
So what does this mean? Other than expecting volatility, I have no idea what will happen in financial markets over the next few days. But I can opine about the downgrade, Obama’s unserious response, and what it means in terms of public policy over the next few years and into the future.
Notwithstanding the President’s cavalier attitude, America is in trouble. But while the crisis is severe, we have some breathing room.
Our fiscal crisis is akin to a very dangerous, but slow-developing cancer. It is not a car wreck with immediate life-threatening injuries.
And there are solutions, as explained in this good news-bad news-bad news-bad news-good news-good news analysis.
1. There is virtually zero chance of the United States defaulting in the next 10 years (heck, probably the next 20 years). Yes, fiscal policy has been reckless and irresponsible during the Bush-Obama spending binge, but I’m guessing it will take another 10-20 years of additional over-spending to bring America to the point of Greek-style collapse. Simply stated, the U.S. economy is so large and so rich that it can’t be destroyed quickly.
Dem Base Not Optimistic on Economy
Liveshots – FoxNews.com
July 26, 2010 – 2:35 PM | by: Lee Ross
Seemingly convinced that the Obama administration has not done enough to improve the country’s economic outlook, a survey of liberals and progressives show a majority believe the nation is now in the midst of a serious long-term economic decline.
The straw poll from this weekend’s Netroots Nation convention of activists reveals that 53% of those surveyed believe the current economic difficulties will last for the foreseeable future. Only 35% think a positive correction is right around the corner.
In a video statement played at the convention Saturday, President Obama talked about the timing of an economic recovery that seems to match up with these numbers. “It took years to get here,” Obama said. “It will take time to get us out.”
Nearly three quarters of the people surveyed believe Washington lawmakers should make the nation’s sluggish employment marketplace their top priority. Concerns over the wars in Afghanistan and Iraq, as well as other issues, lagged far behind.
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