Economics

The man who won the presidency with a message of faith and hope doesn’t seem to know how to govern by those principles.

If the first month of the Obama administration has any early trademark, it’s that faith (Yes we can!) has been replaced by fear, and hope by the looming shadow of Big Government. This is a stunning turn of events for the man that captivated America with a big smile and rhetorical visions of promise.

It’s also a lousy way to lead–and because of it, the markets continue to lose value, the financial confidence of the business community is teetering, and consumers aren’t spending. For the first time in my lifetime, our nation seems to be losing its economic faith and hope.  This could be disastrous if Barack Obama continues to flail in his leadership. Good Leaders inspire confidence; Poor leaders create fear.

Yes, we understand that Barack Obama inherited a serious recession caused by three major factors:

• Thirty years of liberal over-regulation of the housing market that created the monstrosities of Fanny Mae and Freddie Mac and forced other lending institutions to compete with them in selling bad loans to people who couldn’t pay their mortgages. The federal government is the biggest culprit in the current financial shake-up and the world’s largest debtor.
• Some businesses followed the government greed into bad loans and excessive debt.
• Some American consumers bought homes they couldn’t afford, maxed their credit cards to the hilt, and also ran up excessive debts.

So we can’t blame the president for this toxic mix of stupidity, but we can for his early governing response to it. He has done nothing but multiply fear and hopelessness so far.

In a speech last week in Colorado, President Obama, who would like to be known as a 21st century Franklin Roosevelt, did exactly the opposite of his esteemed predecessor. In less than thirty minutes of oratory, he called the current financial recession a “crisis” no less than twenty-six times–promoting fear and unease in the hearts of his listeners.  Wasn’t it FDR who said during the dark days of the Depression and World War II that “the only thing we have to fear is fear itself?” President Obama seems to think that the only way to get out of this mess is to play the fear card again and again.

Before that, and many other speeches on the subject, came the infamous “Stimulus Bill”–really a  Democratic wish list of social programs, paybacks to unions and other special interests, with a stealth universal health care provision. In the court of public opinion (a dismal 37% approval rating) and the only real polls now being taken–the voting of the financial markets–the “Porkulus Bill” bombed.  It also produced such disdain and loathing that it even elevated CNBC’s Rick Santelli to instant rock star status with his tirade before the Chicago stock exchange on February 20th. Here are his words which echoed the frustrations of a nation:

“The government is promoting bad behavior! We certainly don’t want stimulus pork and give people a whopping $8 or $10 in their check and think that they ought to save it. And in terms of modifications, I tell you what–I have an idea. The new administration is big on computers and technology. How about this, Mr. President and new administration. Why don’t you put up a website to have people vote on the Internet as a referendum to see if we really want to subsidize the losers’ mortgages? Or would they like to at least buy cars, buy a house that is in foreclosure … give it to people who might have a chance to actually prosper down the road and reward people that can carry the water instead of drink the water?”

“This is America! How many people want to pay for your neighbor’s mortgages that has an extra bathroom and can’t pay their bills? Raise your hand! President Obama, are you listening? You know Cuba used to have mansions and a relatively decent economy. They moved from the individual to the collective. Now they’re driving ‘54 Chevys. It’s time for another tea party. What we are doing in this country will make Thomas Jefferson and Benjamin Franklin roll over in their graves.”

Wow. Even former president Bill Clinton was concerned about Barack Obama’s current lack of positive leadership. Clinton said he was glad that President Obama “shot straight with us” about the economic crisis, but added that “Obama should also offer Americans more hope.” Clinton said he would like to hear that Obama “is hopeful and completely convinced we’re gonna come through this.”

Maybe he’s not convinced because he’s either a star-struck rookie still learning how to govern (something he’s never done before), or he just doesn’t have the faith himself. He should take a lesson from the last US president who presided over an economic recession–Ronald Reagan–who guided us steadily out of the malaise of the Jimmy Carter years into the greatest economic boom in history (1982-2007). Here are Reagan’s faith-stirring words:

“Whatever else history may say about me when I’m gone, I hope it will record that I appealed to your best hopes, not your worst fears; to your confidence rather than your doubts. My dream is that you will travel the road ahead with liberty’s lamp guiding your steps and opportunity’s arm steadying your way.”

Another person who understands the place of faith in economics and American history is author and political consultant Doug Simpson who ran my 2006 legislative campaign. In his wonderful book, Looking for America: Re-Discovering the Meaning of Freedom, Doug shares a magnificent perspective on faith and economics, hope and freedom. Here are some of his inspiring words:

• “Faith allows creativity, where fear does not. Faith always finds a new idea to make things better, to grow and multiply. In a word, faith is creation. Fear holds back, shrinks into bitterness and stifles new ideas…Faith loves and believes in the future, where fear covets and can only see the reality that exists in the present.”
• “The secret to the success of capitalism and free enterprise is faith. The secret to the failure of socialism and its children is fear.”
• “Faith cries out and innovates. It believes that even failure can be transformed into success, as long as you get one more shot at it. The key to the success of opportunity has always been faith. Fear cannot see opportunity, therefore it merely prophesies failure and, in the end, guarantees disappointment.”
• “Free market capitalism should be the eighth wonder of the world. It has been the primary economic governing system responsible for creating the wealthiest nation in all of history…Our poor are richer than the rich of the majority of foreign countries…We have produced an endless list of wonders of creation–creation born out of a desire to make life better and receive an achiever’s reward. That is what America is about.”
• “So what do we have that others don’t have? It’s on our money–In God We Trust–Trust means faith…When free market economics are coupled with faith they are an unbeatable combination.”
• “The reason why the free market has worked so well in America is not because we were a Christian nation by label, but because we’ve lived by the principles of Christianity of which the primary characteristic is faith. In other words, the system that we know as capitalism is a faith-based system.”

Let’s pray for President Obama–that he would stop speaking about fear and the need for ever-increasing government and lead us into the light of faith and freedom.  If our president will find his own faith, and lead us back to God, trust, repentance, hard work, liberty, and the economic blessings that follow those principles, then we can begin to believe in him.

And then we can all say, ”Yes We Can!”

Amazing Greed, How Sick the Sound!
That Destroyed a Great Nation Like We
We Once Were Free, But Now We’re Bound
Were Wise, But Now We Bleed

You can mark February 10, 2009 as another infamous date on our national calendar. It ranks with December 7, 1941, “a day that will live in infamy” when the Japanese invaded Pearl Harbor. It will live in our memory like September 11, 2001 when Muslim Jihadists sent three thousand Americans to their deaths.

February 10, 2009 could be remembered as the day America died–socially and economically. It was the day that three hundred foolish American politicians sold the heart and soul of our great nation for a pot of greed. It is a day to weep for our families, children and heritage that has been lost.

On February 10, the American Congress signed into law the “American Recovery and Re-Investment Act of 2009.”  We were told that this bill was “absolutely necessary,” that “something needed to be done,” that it would be a “catastrophe” if we don’t move quickly, and that to delay would be “inexcusable and irresponsible.” With fear tactics reaching all-time highs on Capitol Hill and in the White House, our normally deliberate Senate gave us the worst piece of legislation in American history. The cost of this boondoggle is staggering both in the short term and long run. Could it be the tipping point in America becoming a second class nation?

So many things amaze me about the passage of this bill.

I’m amazed at the brazen greed that is at its core. Let’s be honest: This is not a stimulus bill. Even liberal senator Diane Feinstein admitted that the bill was only 15% stimulus. What it really creates is the Biggest Pork Barrel Project in the history of the world. It’s twenty years of earmarks in one piece of legislation. Basically, our politically ravenous leaders decided to bribe their states and constituencies with goodies–millions for this and billions for that.

I won’t even bother you with the wish list–63% if Americans are already disgusted with it.  Every liberal politician pulled out his or her pet project list, bundled the numbers together, and voila!–nearly a trillion dollars was thrown to the special interests. Pure greed serving “pork sirloins” to secure power. Governments don’t make profits because they can’t create wealth. What they seek is power over people by creating dependence under the illusion of compassion and “leadership.” It’s Big Brother buying votes from his little, unthinking siblings. It’s a crock–fundamentally motivated by a greedy desire for power.

I’m amazed that we are throwing a trillion dollars of debt at solving a problem that is all about debt. It was too much debt that got us into this mess. The US Government was the biggest culprit piling up ten trillion dollars worth of IOUs (before the bailout money)–and that irresponsible behavior led corporate America and individual citizens to follow suit. We said, “If Uncle Sam can live on credit, why can’t we?”  Then the house of cards crashed.

What we really need is to work through the debt crunch by all of us paying down our obligations. When your boat is sinking you don’t fire hose the engine room. You bail like mad to get the water out of the stern. If the federal government, state governments, businesses and individuals got serious about foolish deficit spending this ship could be righted in months, not years. Instead, we could actually sink to the bottom of the economic ocean.

I’m amazed that the housing crisis–the government encouraging bad loans via Freddie Mac and Fanny Mae–which drew many banks and consumers into poor business decisions–is nowhere addressed in this pork barrel fiasco. If the housing collapse is at the center of the current economic recession, you’d think our leaders would be smart enough to aim their legislative powers at the heart of problem. But smart doesn’t seem to be a part of DC politics these days. They’d rather give 400 million dollars to fighting STD’s, 45 million to ATV trails, and 40 million to the National Endowment for the Arts. Maybe they think their “Thousands Points of Earmarks” will trickle down to the hard-working, struggling homeowner.

I’m amazed that this bill bails out the careless spending habits of many state governments. This is nearly 20% of the bill. California has a 16 billion dollar deficit due to reckless politicians. New York’s liberal leaders have overspent by 15 billion dollars. My home state of Washington, due to out-of-control spending, is facing a 6 billion dollar deficit. Other states are in trouble–but the fiscally responsible ones are not. Only 19 governors favor this bill, and guess which ones they are?  They are the governors of the poorly managed states. Instead of forcing the “bad businesses” (states) to change, we’re rewarding them with loot. This is economic marketplace insanity that will not force the bad states to change their ways. Two hallmarks of freedom are the importance of correction and the freedom to fail. If those consequence are removed–you never learn.

I’m amazed that President Obama and other liberal leaders can look us in the eye and say that this bill is about stimulating the economy. It’s equally stunning that the so-called “best financial minds” in the country advising our president are parroting this nonsense. What are all these guys smoking?  The evidence of the past is clear: Government spending does not stimulate growth because it is not focused on the wealth creating sectors of the economy–the entrepreneurs, the small business owners, and the large corporations who actually produce goods & services. The only jobs this bill produces are government jobs and labor union jobs who will be the prime recipients of the government contracts. No wealth is created–it’s transferred to the Government Bureaucracy and its primary cheerleaders, the Democratic Party.

This power grab didn’t help America under FDR or LBJ and won’t help now. We need tax cuts on capital gains, payroll taxes, small business, and corporate rates–and decreasing government spending–to stop the recession and spur economic growth. Democrat JFK applied that remedy and the economy soared in the sixties. Republican Ronald Reagan cut tax rates further and launched a 25 year boom in economic growth (1982 to 2007). Supply side economics work–Keynesian remedies don’t. How can our leaders be so blind?

I’m amazed at the claim that “44% of the bill is about tax cuts.” This is a lie that Barack Obama repeated for nine months on the campaign trail. He said he would give a “tax cut” to 95% of Americans–the so-called middle class. But he wasn’t telling the truth. 45% of all Americans pay no income taxes.  This means that half of the “tax cuts” are simply welfare handouts. Obama is simply buying votes from the lower classes by giving them money. This bill is the Mother of All Welfare State Bills. This type of stimulus sounds good on the surface, but it never translates into private sector-producing jobs.

I stand amazed at the type of leaders we’ve elected to run the United States. Instead of an Alexander Hamilton guiding wise banking policy, we have Barney Frank, an egotistical congressman who ran a gay brothel out of his DC apartment and Timothy Geithner who cheated on four years of taxes; Instead a Sam Rayburn or Henry Clay leading Congress, we have San Francisco madame Nancy Pelosi; Instead of national statesmen like Daniel Webster and John Quincy Adams we have Jim McDermitt and Larry Murtha; And for president, instead of choosing a wise businessman like Mitt Romney or a trusted war hero like John McCain, we elected an inexperienced two year senator who speaks well.  When are we going to start electing wise and experienced leaders again?

I’m amazed that 53% of Americans believed that Barack Obama would bring change and bi-partisanship to Washington, D.C. Why would he do so as president when he’s never been bi-partisan in the past? His record was clear. He’s a far left politician who wants to do radical things–and that’s exactly what he’s racing to do in a un leader-like partisan manner. Barack Obama’s definition of bi-partisan means “you change and accept my far left policies.” That’s how he led this first significant policy fight.

Republicans were locked out of the House bill. The twenty US senators who fought for balance and compromise on the Senate bill were told to shut up (”we won”) and sent home. That’s why this bill was supported by only three Republicans out of 535 Congressional leaders (three liberal Rs). There is one silver lining to this disgraceful partisanship: This bill is Obama’s Abomination and the Ds and 3 Rs will be held accountable for it. Mercifully, the next two years cannot be blamed on George W. Bush.

I’m amazed that we’re abandoning our incredible free enterprise system and its accompanying freedoms and blessings for the failed policies of socialism. Socialism, or its political form–communism–have never out-performed free men and woman who dream, create, and work hard to improve life around them. America’s greatness was never found in government power and financial redistribution. It came from free people acting with faith, hard work, strong morals, independence, limited government and unquenchable hope that we the people, not an Omnipotent State, could create a better world for our children and grandchildren. This was the essence of the American Dream. In 2009, President Obama and other liberal politicians are leading us into an American Nightmare where

• faith is replaced by fear and angst
• hard work is discouraged by welfare and government controls
• strong morals give way to immorality and a culture of death
• independence yields to dependency and victim-hood
• limited government is replaced with monstrous government intervention
• and hope is a hollow slogan, not the result of our faith and trust in God

And as Bloomberg Press pointed out yesterday, this is only one trillion of a total of 9.7 trillion in lending programs and guarantees that our government has rolled out over the past nine months. That’s two-thirds the total value of our 2008 gross domestic product. It’s enough money to give $1430 to every man woman and child in the world. It’s almost enough to pay off every mortgage in America. When does the concept of trillions mean something? When our kids and grand kids have to pay it back?

Let’s call this bill what it is: The American Anti-Recovery and Redistribution Act of 2009.  Amazing Greed, How Sick the Sound!

So where do we now turn to right this incredible wrong?

More then ever we need amazing grace from God to save us. It will come when we admit we’ve done wrong, turn from our foolish actions, put our faith in Him and not men, return to his principles in every area of life including economics, and build our individual, family, and national life on the time tested ideals of our magnificent history. Maybe the painful road down will lead us to the upward road of hope and renewal.

God, forgive us for what we’ve done. Lead us to your Amazing Grace.