Media deliberately buries Victor Davis Hanson’s thorough devastating article explaining the Obama/US Economy.

Please forward to everyone you know. I could not find it on the Internet

http://israel-commentary.org/?p=3609

The Jewish Press May 18, 2012

Most economists since 2009 have been completely wrong in their forecasts, reminding us that their supposedly data-driven discipline is more an art than a science. After all, a great deal of money is invested and spent – or not — based largely on perceptions, hunches, and emotions rather than a 100 percent certainty of profit or loss.

And the message Americans are getting is that the Obama administration is hostile to investment and business, and thus should be waited out. Despite the stimulus of borrowing over $5 trillion in less than four years, near-zero interest rates, and chronic deficits, the U.S. economy is in the weakest recovery since the Great Depression and mired in the longest streak of continuous unemployment of 8 percent or higher – 38 months since the 1930s. The Mexican economy is growing more rapidly than ours.

Why did the massive annual $1 trillion-plus deficits fail to spark a Gross Domestic Product (GDP) as new public works projects were heralded by the administration? Much of the answer is found in the collective psyche of those Americans who traditionally hire, purchase or invest capital. An economy is simply the aggregate of millions of private agendas, of people sensing and reacting to a commonly perceived landscape. Yet since January 2009, that landscape has been bleak and foreboding.

Take the debt. The problem is not just that Obama has borrowed $5 trillion in less than four years, but also that he has offered few plans to reduce the ongoing borrowing and none at all to pay down the debt. Instead, he has demonized as heartless anyone who opposes his serial $1 trillion annual deficits. That demoralizes the public, who privately know that they cannot buy everything they might wish, and who expect that government will not, either. In the business community, there is the unspoken assumption that, at some point very soon, either taxes will have to rise, the currency will have to inflate radically, or debts will have to be renounced – all equally foreboding for those with capital.

Take energy. We are reminded that the Arctic National Wildlife Refuge (ANWR) oil fields in Alaska, and others far greater there, are still off limits. So too are over 25 million barrels off the California coast. Federal leases have been vastly curtailed in the Gulf of Mexico, off the Eastern Seaboard, and in the American West. The cancellation of the Keystone pipeline, which would have kept billions of U.S. petrodollars inside North America, coupled with Solyndra-like federally subsidized solar and wind boondoggles, sent the message that the government would oppose energy that was profitable and subsidize sources that were not.

Worse still, in less than four years we have now an entire corpus of Obama-administration quotations blasting fossil-fuel energy. The president himself promised skyrocketed energy prices with his now-stalled cap-and-trade proposals. He mused that new regulations might bankrupt coal-burning companies. He ridiculed the idea of increasing oil and gas supplies by more drilling and instead pointed to the importance of proper tire pressure and regular tune-ups and spoke of tapping Americas vast algae resources. (Huh?)

Interior Secretary Ken Salazar, who as a senator had claimed that even $10-a-gallon gas would not prompt him to open up federal lands for oil and gas leases, shrugged that there is no way of knowing whether $9-a-gallon gas is on the horizon. More recently, it was disclosed that an EPA regional administrator had bragged of trying to “crucify” and “make examples” of gas and oil companies in the manner that the Romans did to conquered peoples.

The current renaissance in American oil and gas production is primarily a private effort to drill on private land, despite rather than because of the Obama administration. Obama’s taking credit for private companies* finding new sources of low-priced oil and gas only heightens the sense of private-sector cynicism and pessimism. The result is that “speculators” do not believe oil companies will be given access to enormous energy reserves on public lands — and that, to the degree they drill new wells on private lands, a horde of apparatchiks (government flunkies) will make life difficult for them.

Take also new mandates. The problem with Obamacare is not just that it represents a vast new entitlement at a time of record annual deficits, but that no one knows how much it will cost employers to enroll their employees. Potential hirers instead suspect only that their healthcare expenses will spike, and those who are politically connected, for that very reason, have sought and obtained exemptions from the Obama administration.
The public likewise suspects Obamacare will come to resemble the hated Transportation Security Administration (TSA) they see at airports – lots of employees milling around, little guarantee that the job at hand is done well, and an evident resentment of federal employees toward the public they serve.

Take wealth. Obama has ridiculed those who have done well as fat cats, corporate-jet owners, people who don*t pay their fair share or don*t know when to stop making money. But the problem with this boilerplate populism is that it does not emanate from the muscular classes and is not aimed uniformly at the proverbial rich. The first family vacations in Martha’s*s Vineyard, Costa del Sol, Vail, and Aspen, not at Camp David; and the lieutenants in this class warfare are themselves one-percenters – Al Gore, John Kerry, Nancy Pelosi, etc.

The only thing more discouraging to investors than class warfare generally is a certain type of class warfare: a hypocritical crusade that emanates from the upper classes and selectively targets enemies on the basis not of wealth, but of the degree to which they have failed to buy exemptions with their wealth. If one were to dream up a perfect way to destroy incentives on both the top and bottom ends, one could do no better than what we have seen since 2009.

The net result is that those with capital, even if they are small businesses, do not believe the Obama administration likes them. They feel regulations will increase, taxes will increase, energy costs will increase, and that as they pay more to government and keep less, government will nevertheless become even more arrogant and inefficient and they will become even more demonized.

When people pay over 50 percent in payroll, federal, state, and local taxes and are still caricatured as “not paying their fair share,” a sort of collective shrug follows and bodes ill for the economy at large. One need not be liked to make money, but the constant presidential harangues finally take their toll in insidious ways.

I don’t know whether Mitt Romney’s economic package will bring instant prosperity. But, I suspect the fact alone that it is not what we have seen and heard for the last four years will unleash a pent-up energy of the sort we have not seen in a long time.

Victor Davis Hanson is a senior fellow at the Hoover Institution, and the author of numerous books on military history. He blogs at Pajamas Media (http://pjmedia.com/victordavishanson)

Why our economy and ability to compete are in the tank

Obama’s team has job, economy and liberty destroyers at every position

Video below article: Analysis of US economic crisis
By Mort Zuckerman, Chairman and editor in chief of US News & World Report and publisher of the New York Daily News

Chief destroyer, Obama aided and abetted by:
Ken Salazar, Kathleen Sebelius, Barney Frank, Carl Levin

By Richard W. Rahn
The Washington Times
April 25, 2011

Which two have done more to improve your life – Thomas Edison and Steve Jobs, or Barack Obama and Nancy Pelosi? Some people, in their pursuit of profit, benefit their fellow humans by creating new or better goods and services, and then by employing others. We call such people entrepreneurs and productive workers. Others are parasites who suck the blood and energy away from the productive. Such people are most often found in government.

Perhaps the most vivid description of what happens to a society where the parasites become so numerous and powerful that they destroy their productive hosts is Ayn Rand’s classic novel “Atlas Shrugged.” The just-released movie version is an entertaining, tension-filled struggle between the productive and the parasites who ally themselves with the envious and evil. Go see it.

When wages are rising faster than inflation (i.e., real wages), and the number of adults, as a percentage of the population at work, is rising, times are good; but when real wages fall, misery results.

For the past several months, real wages have been falling, and despite the small improvement in the unemployment rate, the adult population/worker ratio continues to fall. Declines in prosperity most often are a result of bad policies rather than natural forces, with the rare exception of an event like the Japanese earthquake and tsunami.

Bad policies come about from the actions of specific people – individuals in Congress and government agencies – not the Congress or the administration as a whole. Washington is filled with people who are more destructive than constructive. It is useful to name some of the most destructive people in the hope that they will either reform or leave.

One of Washington’s most aggressive destroyers of jobs has been Rep. Barney Frank, the Massachusetts Democrat who is a former head of the House Financial Services Committee and principal author of the now-notorious Dodd-Frank Act. He was one of main protectors and enablers of Fannie Mae and Freddie Mac as they went on their ruinous, subprime mortgage buying binge.

Peter Wallison, former general counsel of the U.S. Treasury and member of the Financial Crisis Inquiry Commission, has produced a lengthy report showing how the actions of Fannie and Freddie were the most important causes of the financial crisis. If Mr. Frank and his Senate counterpart, disgraced former Sen. Christopher J. Dodd, Connecticut Democrat, had acted responsibly, millions of Americans might not have lost their jobs and homes over the past few years.

Interior Secretary Kenneth L. Salazar, a former senator, has done more to destroy and curtail American oil, gas and coal production than any other single human. Soon after taking office, he prohibited oil and gas production in huge areas of the American West. He has held up the permitting of both offshore and onshore oil production well beyond what was necessary to ensure safety. He has ignored sound science and the rule of law. His actions, even according to Democrat senators and others, have cost hundreds of thousands of American jobs.

Health and Human Services Secretary Kathleen Sebelius was caught in a half-trillion-dollar lie last month, when, before a House Committee, she was finally forced to admit that the administration had been double-counting Medicare savings as critics had been claiming. If Ms. Sebelius and others in the administration had told the truth, Obamacare would never have passed. The costs associated with this piece of legislation, not even considering the costs of all of the legal challenges, will result in millions of job losses and a loss of personal and economic freedom – unless the Supreme Court upholds the legal challenges.

President Obama claimed last week in his budget speech that hundreds of billions of dollars can be saved in the Medicare program by eliminating waste, fraud and abuse. If that is true, why has he tolerated Ms. Sebelius’ mismanagement?

Sen. Carl Levin, Michigan Democrat, has done much to drive foreign investment and jobs out of America. He has done this by leading a headline-grabbing, but economically illiterate, crusade against legal tax avoiders, tax evaders and low-tax jurisdictions.

His destructive “solution” has been to put costly and punitive restrictions on domestic and foreign financial institutions. These restrictions have caused some foreign financial institutions to cease investing in the United States and to refuse opening accounts for Americans. It has been explained to Mr. Levin that his previous and newly proposed legislation is driving upwards of $1 trillion of foreign investment out of the country, which will cause Treasury to lose, in the real world, many times the tax revenue Mr. Levin and his gang of know-nothings claim.

But Mr. Levin carries on, leaving America with far less foreign investment and the jobs it would create – all in a selfish attempt to curry favor with the witless media.

Finally, we have the job-destroyer-in-chief, Mr. Obama. Even though the empirical evidence shows that both job creation and liberty increase with reductions in the size of government and tax rates, the president has done just the opposite.

Last week, without offering an alternative budget plan of his own, the president had the unmitigated gall to attack House Budget Committee Chairman, Paul Ryan, who has a serious plan to deal with the budget crisis. However, Mr. Obama did call for a big tax increase on those who create jobs. If that happens, prepare for double-digit unemployment.

Richard W. Rahn is a senior fellow at the Cato Institute and Chairman of the Institute for Global Economic Growth.

Click to view the Mort Zuckerman video.

And watch as interviewer desperately tries to put words in Mort’s mouth. We must have been watching MSNBC or CNN or TBS or any number of the other of the Left wing press. I am sure they were sorry that asked him for his point of view. jsk