Did Summers Go to College?

On February 9, 2010, in Background and Research, by Tiffiniy Cheng
Larry Summers probably should be crowned “dude reformer of the year”. He said, “To fully understand unemployment, we must consider the causes of recorded long-term unemployment. Empirical evidence shows that two causes are welfare payments and unemployment insurance. These government assistance programs contribute to long-term unemployment in two ways…
The second way government assistance programs contribute to long-term unemployment is by providing an incentive, and the means, not to work.”

Sarah Palin, on the other hand, made a remarkable point in her speech last weekend at the Tea Party convention in Nashville. We really have some colleagues in the tea party movement.

The problems that we face in the real world require real solutions and we’d better get to it because the risks that they pose are great and they’re grave. However, as Barry Goldwater said, we can be conquered by bombs, but we can also be conquered by neglect, by ignoring our Constitution and disregarding the principles of limited government. And in the past year, his words ring true. Washington has now replaced private irresponsibility with public irresponsibility. The list of companies and industries that the government is crowding out and bailing out and taking over, it continues to grow. First, it was the banks, mortgage companies, financial institutions, then automakers. Soon, if they had their way, health care, student loans. Today, in the words of Congressman Paul Ryan, the $700 billion TARP has morphed into crony capitalism at its worse. It is becoming a slush fund for the Treasury Department’s favorite big players, just as we had been warned about.

While people on main street look for jobs, people on Wall Street, they’re collecting billions and billions in your bailout bonuses. Among the top 17 companies that received your bailout money, 92 percent of the senior officers and directors, they still have their good jobs. And everyday Americans are wondering, where are the consequences for them helping to get us into this worst economic situation since the great depression? Where are the consequences?

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Scaring Democrats

On January 25, 2010, in The Public, by Joe Costello

Scaring Democrats

Over time, as the Democratic party lost

all moorings, it became, as tends to happen under such circumstances, the party of fear. The only way you could tell what Democrats where going to do was how fearful they were, and only way to get them to do anything was to scare them. So, in that best tradition, the Post has a house of horrors piece for the Democrats, warning them not to get too carried away with banging the bankers and by all means don’t do anything or the stock market will go down. One interesting thing about the piece is it doesn’t use any of the big banks or Wall Street firms. The great quivering economic intellect at the White House replies in the best empty political rhetoric:

“The policies that work out best over time are those that strengthen economic fundamentals, not try to influence day-to-day market movements,” said Lawrence H. Summers, the president’s top economic adviser. “The experience of the past 60 years is that not only working families but also businesses and markets have performed better during periods of progressive governance and sound financial regulation.”

Larry’s been in DC way too long.

Meanwhile the FT, shows they still don’t quite get the colonies and how the game is currently played. The title is good “Nightmare persists for White House” and they do provide the money quote:

“Obama has to decide whether he wants to be a transformational president, which looks optimistic at this stage, or merely an effective president,” says Bruce Josten, head of government affairs at the US Chamber of Commerce, which has spent tens of millions of dollars opposing healthcare. “My advice would be that he pick up the phone and ask for Bill Clinton’s advice on how to recover from a situation like this.”

Ho, Ho, Ho, we couldn’t possibly ask Mr. Clinton to do more to, I mean for, this nation than he already has. But, the Brits don’t quite get the game and the rest of the article is “stiff upper lip” advise. Sack Geithner, sack Summers, and just as importantly get rid of Rahm. The FT is the first place I’ve seen lay the health care debacle squarely on Rahm, and the size of the blunder of the move fits. Rahm got to his position in DC by collecting money, he’s a political knucklehead. If you’re relying on Rahm for anything but making the trains run on time, you’re in serious trouble.

Remember Democrats, as the fellow in the wheel-chair said, “The only thing to fear is fear itself.”

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