Thread: Obama’s Policies Are Failing By: Ronald Kessler

Obama’s Policies Are Failing

Monday, July 20, 2009 10:06 AM

By: Ronald Kessler

Six months into his presidency, it’s clear that neither President Barack Obama’s economic plan nor his world peace plan is working.

After pushing Congress to pass the $787 billion stimulus, Obama has seen the unemployment rate rise from the 8 percent limit he predicted if the bill passed to 9.5 percent. After apologizing to the world for America’s imagined failings, Obama has seen Iran and North Korea continue their nuclear programs and become more even belligerent than when George Bush was president.

Behind Obama’s failure is a blind spot when it comes to understanding that people respond to incentives and disincentives. Funneling money through the federal government has no multiplier effect and does not give businesses incentives to expand and hire more people. Nor does sweet talking dictators give them any incentive to change their behavior.

If Obama had instead offered tax incentives, as the Republicans proposed, rather than planning to raise taxes, businesses would have felt more confident about hiring more workers. Instead, businessmen see nothing but gloom ahead — higher costs for health insurance and higher taxes, especially on small businesses, which account for the greatest job growth.

Looking at Obama’s approach, I am reminded of sitting in the dining room at the National Hotel in Moscow when writing my book “Moscow Stationâ€

Obama’s Policies Are Failing

Monday, July 20, 2009 10:06 AM

By: Ronald Kessler

Six months into his presidency, it’s clear that neither President Barack Obama’s economic plan nor his world peace plan is working.

After pushing Congress to pass the $787 billion stimulus, Obama has seen the unemployment rate rise from the 8 percent limit he predicted if the bill passed to 9.5 percent. After apologizing to the world for America’s imagined failings, Obama has seen Iran and North Korea continue their nuclear programs and become more even belligerent than when George Bush was president.

Behind Obama’s failure is a blind spot when it comes to understanding that people respond to incentives and disincentives. Funneling money through the federal government has no multiplier effect and does not give businesses incentives to expand and hire more people. Nor does sweet talking dictators give them any incentive to change their behavior.

If Obama had instead offered tax incentives, as the Republicans proposed, rather than planning to raise taxes, businesses would have felt more confident about hiring more workers. Instead, businessmen see nothing but gloom ahead — higher costs for health insurance and higher taxes, especially on small businesses, which account for the greatest job growth.

Looking at Obama’s approach, I am reminded of sitting in the dining room at the National Hotel in Moscow when writing my book “Moscow Stationâ€

the media may think twice about its dereliction of duty in not informing the American people of who Obama really is.

Well, lets hope so, but Im sure not holding my breath. The media is still sooo in loooove with thier little "Golden boy".

the media may think twice about its dereliction of duty in not informing the American people of who Obama really is.

Well, lets hope so, but Im sure not holding my breath. The media is still sooo in loooove with thier little "Golden boy".