The O administration has some sensible economic voices, but they don’t seem to carry much clout. Larry Summers is fairly mainstream, Robert Reich is turning radical, and Paul Krugman is a hair-pulling wild  man. The so-called stimulus bill is pure political payoff to Democrat city machines, the teachers’ unions, and faithful leftwing armies like ACORN Those 1.17 trillion dollars are  not designed to stimulate normal economic activity, defined as products and services that Americans want and will work for — which is what “supply and demandreally means, after all. 

 

The economy is one gigantic incentive machine. Take away the incentive value of work and buying things, and yes, you will get a very bad recession. And no, Nancy Pelosi has it wildly wrong by arguing that more subsidized birth control means more wealth per person, for those who are actually born. The administration is even ignoring the first-grade lessons of the Smooth-Hawley with its buy-American provisions in the House bill. Suddenly alarmist headlines are appearing in the worshipful European press. Will the US turn protectionist under Obama? Watch what the Senate does with the outlandish House bill, and we will know the answer. 

 

Future generations are being burdened with this second trillion dollar payoff in a few months — after the first trillion bucks for TARP.  But fear not. The O administration is promising yet more trillions in spending, under the mad delusion that the New Deal didn’t spend enough on things people didn’t want. The stock market is signaling fear and doubt. So far,  the market looks to be right.  
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