Wanna Know Why the Economy Is Still In the Ditch?

Robert J. Samuelson, writing in the Washington Post nails it in the last paragraph of today’s column (emphasis is mine):

 

Obama can't be fairly blamed for most job losses, which stemmed from a crisis predating his election. But he has made a bad situation somewhat worse. His unwillingness to advance trade agreements (notably, with Colombia and South Korea) has hurt exports. The hostility to oil and gas drilling penalizes one source of domestic investment spending. More important, the decision to press controversial proposals (health care, climate change) was bound to increase uncertainty and undermine confidence. Some firms are postponing spending projects "until there is more clarity," Zandi notes. Others are put off by anti-business rhetoric. The recovery's vigor will determine whether unemployment declines rapidly or stays stubbornly high, and the recovery's vigor depends heavily on private business. Obama declines to recognize conflicts among goals. Choices were made -- and jobs weren't always Job One.

 

If you are not familiar with Samuelson, you should read him.  He is always clear, concise and accurate in his economic assessments.  He shows little if any bias, staking his positions based on solid data, not opinion.

So today, we have President Obama hosting a “jobs summit”.  This is a Potemkin village of a summit, put together for show.  He has already said that nothing will happen in the area of job creation until next year.  Of course not, Mr. President.  Because you waited until December to think about the issue.  This incredible prioritizing of issues will cost him re-election more than any other of his actions.  Somehow, it was more important to prop GM up, dive into health care, play with cap and trade, diddle around with bringing the Olympics to Chicago and pass a $787 billion porkulus bill that nobody can figure out exactly how many jobs it has “saved or created”>

OK, I’ve called him out on this clusterfuck he has made of things.  Here is how I think he should have prioritized things from the time that he took office:

• 1.  Address Afghanistan
• 1a. Take over and sell off the big zombie banks.  Get the bad stuff out so that the good stuff can grow.We’ve spent trillions in porkulus, bailouts and so forth.  $1.9 trillion is pretty close to the number, I believe, without trying to chase down the correct number.  Adjust that to $1.5 trillion to be conservative.  Instead of using that money to prop up banks and crappy car companies, buy up the bad assets of those companies and then sell them off, over time, for whatever they can get.  This, of course, is what TARP was supposed to be for in the first place.  This economy is languishing now because nobody knows what to do with all those empty houses and full car lots.  If the bad actors (GM, Lehman, etc.) go out of business, well, then too bad.  Obama has socialized the loss.  Bullshit.
• 1aa. Cut taxes, especially business taxes.  Right now, an estimated $13 trillion in corporate profits is held offshore in order to avoid the 35% tax rate that companies would have to pay if they brought that money home.  That money could have been repatriated with the stroke of a pen by signing a tax amnesty bill that would either eliminate that 35% or reducing it to some much lower lever.  Instead, we went and borrowed trillions when we could have had just as much capital brought in for zero cost.  No interest at all and even gain some tax revenue if that rate were lowered to say, 15%.  This was proposed by a Texas Congressman, but since he had an R next to his name, it wasn’t considered.
• 2.  Go collect undeserved nobel peace prize*, because those assholes were gonna give it to him no matter what he did. 

Had he done this, he would have utterly disabled the Republican party by co-opting their notions for running the country.  And he would have won over a large part of the Republican base in so doing.  And, oh yeah, he would have saved the country a Depression.

*Never capitalized here.

UPDATE:  He’s having this summit without his critics, otherwise known as people who might have some better ideas.  Jeez.  Somebody needs to remind him of how the Hegelian dialectic works.