Monday, August 30, 2010

You must have failed Econ 101

Dear Mr. President,

(I'm sorry... but I find it difficult to address BHO, the clown in the above picture, as Mr. President, but out of respect for the office, and some before him, I need use the term Mr. President!)

So... Mr. President... I know you went to the most prestigious Universities in America (paid for by the the taxpayers... thank you) and I know you received multiple degrees. I know you have many years experience in such high pressure jobs as a Law Professor, government servant and Community Organizer (whatever the hell that is) but you must have failed Econ 101 as a freshman. So... as a trained economist, business owner, employer and parent from flyover country... let me educate you... and explain how the U.S. Economy works. It's really very simple.

For every dollar taken out of our economy to pay for useless government programs, wasteful and unproductive stimulus packages or systematic government waste, fraud and abuse... that's one dollar that cannot be used to make the economy grow. You see, once that dollar leaves the private sector it can't be used grow our economy. It can't be used to expand an existing business. It can't be used to hire unemployed workers. It can't be used to invest in new technology. It's gone... gone into that vast wasteland known as the federal government... where nothing productive comes of it... unless you (and you obviously do) consider a massive expansion of federal government programs and federal government power grab, a productive result.

Obviously your advisers are disciples John Maynard Keynes. I know, I know... he was 'state of the art' at the time I attended undergraduate school. But if you and your advisers actually follow Keynes then you've forgotten one very important point of Keynesian economic theory... and that is; If the government is to be the vehicle to stimulate the economy, borrow massive sums of money from foreign governments, thus, stealing future generation's economic freedom and pump those dollars into unproductive programs that attempt to increase employment and, thus, generate tax revenue... then you have to pay back the debt! Yes, Keynes' theory made it very clear borrowing to stimulate is acceptable... but what you and many of your predecessors have forgotten is that Keynes made it very clear the debt has to be paid back with the increased tax revenue generated by the stimulated economic activity... or bad things happen... like inflation, high unemployment, stagnant economic growth, deflation and hyper-inflation! (Honestly... Keynes theory was just that... theory! In practical application Keynes theroy has been proved wrong multiple times. In case you haven't noticed... you can't tax and spend your way out of a recession!)

The annual deficit under your Administration is now 4 times higher than Bush II's highest deficit. I might add, your Administration has projected annual trillion dollar deficits as far as you can see. You have added more debt to our nation's total debt than ALL your predecessors... combined! Sir... you are proving yourself to be the clownish, man child pictured above!

Call me if you have any question about the economy. I'll be happy to help and tell how it really works! It's really VERY simple!

The Flyover Conservative