Obamanomics 101 - Obama's Real Fiscal Policy

[jumpoutatree]

And what about the naked short selling hedge fund attack on Lehman Brothers that precipitated the financial collapse?

[jumpoutatree]

Is the misery index the only way to assess the health of the economy? Perhaps there are other factors that, when added to the ones used in the misery index, actually make the case that the economy of late 2008 was worse than the 1970s.

[zxcvbnmjhgfdsa1]

Misery index is misleading it doesn't talk about the amount of wealth lost. Obama would have had a deficit no matter what if banks don't lend.

[CHardi1099]

All I have to say is prepare now, with non-perishables, and gold or hard assets, don't save money unless you plan on using it to keep your fire going. There is no good reason to save when Inflation increases by 2019, if there is going to be a 200% GDP. I think it is a 5% now which isn't too bad. But if the CBO is correct and Obama keeps spending on track its going to get a lot worst and you and your children will be dealing with this as long as 2080 at best. If CBO is correct.

[stormbringerII]

@CHardi1099 not a chance, nothing like that scenario followed the inflation in the late 70's and by the mid 80's we were all living the high life again. In fact we were feeling so good we started the very fires of rising house prices that drove consumers in North America and Europe to feel that they are wealthier than they really are. Changing a mindset forever based on the crazy thought that as long as my house is gaining in value I can spend, spend, spend.

[CHardi1099]

CBO says "The Debt is unsustainable!"

cbo(dot)gov/ftpdocs/104xx/doc1­0455/Long-TermOutlook_Testimon­y.1.1.shtm

[HarrySeeword]

I understand that Napolitano is buying office products in bullk. That should save a few thousand. I hope we're still cranking out those Obama commemorative plates as well.

[Lancer7489]

So basically Obamanomics makes zero sense, and is going to do a hell of a lot more damage to the economy than anyone thought was possible. Keep making these videos, they make a lot of sense and help people who aren't economic majors in college, namely me, understand a very complicated subject.

[caligvla71]

I showed this to my professor, he said it was 100% dead on!

[bittergunowner12]

The words fiscal stability and Obama just don't mix...

[BasicEconomics]

It's not just about Obama and the Dems Congress, however they are certainly exacerbating the problem...

[BasicEconomics]

possible if we have rapid consecutive GDP growth until 2019,

[Questfortruth86]

BasicEconomics, I disagree with the general notion that the credit crunch is what caused this mess. Austrian business cycle theory is quite clear about certain interventionist policies, and their effects on the volatility of the business cycle. For me its clear as day, FED easy money policy, huge deficits, and over-taxation built this mess; other various forms of regulation and government intervention perpetuated it. Capital cannot be overtaxed, leads to low savings and low capital accumulation.

[BasicEconomics]

of course there are many contributing factors and you pointed out some good ones, I do believe Fannie and Freddie were the first big link.

Another preceding contributing factor was the minimum wage hike a couple years ago when the dems took over congress. Increases in minimum wage are strongly correlated with unemployment.

I'll have a forthcoming video on unemployment that talks about this in more detail.

[Questfortruth86]

Do you know where I can get Obama's detailed tax plan? I can't find any consistent information.

[BasicEconomics]

good question, It keeps changing, we won't know for sure until the 2010 budget is passed

[bittergunowner12]

Whens the next video coming out?

[Questfortruth86]

Did you guys hear? He's going to make a "new equilibrium" in the credit card market; but this is after he eliminates the business cycle. WOHOOOO OBAMA CHNAGEEEEEEE

[KumoOtokoZero]

BHO time to go!

[therealcaptobvious]

just wanted to add... republicans as a whole have been pushing for less regulation under the guise of free markets.

It's typically considered "laissez faire" economics, when Laissez faire means "your rights end where mine begin". So that would require legislation. This probably is the fine line that splits laissez faire from anarchy.

i'd prefer that the administration not throw debt at the problem and properly legislate it. However, Obama is doing the complete opposite.

[AshillaBeige]

So true about the Reps.

Deregulation usually means a few friendly corporations do whatever, and increased regulations on competition. Just look at Enron. It's a perfect example of that sort of deregulation, and when someone like me makes an argument for free markets, someone will WITHOUT FAIL go "Well just look at how Bush deregulated the market!". Yeah.. he did.. he also SOCIALIZED EVERYTHING. He and Obama are the OPPOSITE of free marketeers in different ways. Obama's Bush on steroids.

[BasicEconomics]

Enron was a case of clear accounting fraud, had nothing to do with not having the right regulations.

They broke the law and violated the existing regulations and people went to jail.

In the US you are innocent until proven guilty, if you kill someone with a hammer you go to jail, should we have the govt look over our shoulder every time we use a hammer just in case?

The types of regulations the Dems are calling for usurps our long standing public policy, and is a "big brother" tactic

[AshillaBeige]

I'm speaking more so of how they used the more deregulated areas of the California market to milk that state dry and ruin the lives of many folks over there. Yeah, accounting fraud was their, but the deregulated market made it easier for Enron to make money. Again, a deregulated market doesn't mean the market there is free, it usually means the regulations go elsewhere.. usually to restrict competition.

I'm just saying that a Bush-style deregulated market and free market are incredibly different

[BasicEconomics]

Just wondering what deregulation you are referring to Bush signed into law? I am very harsh critic of Bush on the bailouts, expanding HUD, etc. But I can't think of any specific deregulation legislation he championed.

I live in California, About 5 years ago the Gov. put up 4 ballot initiatives that would have drastically cut entitlement spending. None of them passed and he warned we would be bankrupt in a few years. California has been a mess for a very long time. countless factors

[BasicEconomics]

To be fair Bush did push for tough regulations over fannie mae and freddie mac. The problem was is that these banks have mandated govt. quotas that forced them to lend to high risk people. Had the govt not been involved with their operations they wouldn't have taken on all these high risk borrowers.

I'll get into much more detail on this in my "Anatomy of a Crisis" video.

What happened was a chain of events and everyone is putting blame on the link in the chain they don't like.

[therealcaptobvious]

I want to mention point number 2. i totally agree except for one thing. a crisis of this magnitude couldn't be possible without macroeconomic problems.The S&L Crisis didn't crash the economy.

I agree with the economists who cite the trade imbalance as a cause for our economic downturn, at a staggering $600 billion plus a multiplier effect. We're too heavily reliant on credit because of that and the 300 million americans can't sponsor econ growth for 1 billion in Chinaa or india.

[BasicEconomics]

Funny you bring up the S&L crisis, because if that was dealt with in the same way as the banking crisis, we would have had very similar results.

Reagan let bad S&Ls fail and lazy shareholders got wiped out and those CEOs never found a job again, even some went to jail. When there was a cash injection it was given to good banks that bought out the crappy banks and ran them right and paid the loans back. Worked great last time, and I am dumbfounded why they didn't do it again.