Forget the Mainstream Media “Business Analysts”: Economics Prof Explains Obamanomics and Conducts Experiment That Proves His Point

~~By InsightAnalytical-GRL

American Lassie forwarded this little ditty which does what the mainstream media can’t won’t do–explain what extreme government control can do to a country’s get up and go.

Now, I, personally, believe in a strong social safety net, so I’ll NEVER be a Republican.  I’m not far over on the other side of the spectrum which seems to put unfettered business and profit above everything else.  Sadly, we’re in a situation now where pandering to business combined with the autocratic streak of the extreme left, is playing into GOP hands for the future.  When they get back in control on the back of their OWN misinformation and scare tactics, their own autocratic stamp will be put on our lives…the table will have been set for extreme cuts to the social services we need.  The GOP have blocked anything that even tries to help strengthen the social safety net in the past and I think they’re salivating right now at the thought of having a carte blanche in the future to wield a harsh and punitive knife so Medicare, Social Security, etc.  And many workers will suffer, as usual, at the hands of employers, as they have done for eons.

Of course, IF we actually have a sane Democratic Party that fights this in the future, we may survive, but at this point, we don’t have a sane Democratic Party, so all bets are off!

So, here is the current state of affairs explained simply. You may want to pass it around to anybody you know who is confused and needs a basic primer…Of course, things are way more complicated in real life.  After all the big banks are TOO BIG TO FAIL, so that sort of skews the curve…

An economics professor at a local college made a statement that he had never failed a single student before, but had once failed an entire class.

Economics Prof in Action

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That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.
The professor then said, “OK, we will have an experiment in this class on Obama’s plan”.
All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.
After the first test, the grades were averaged and everyone got a B.
The students who studied hard were upset and the students who studied little were happy.
As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.
The second test average was a D!
No one was happy.
When the 3rd test rolled around, the average was an F.
The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.
All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.
Could not be any simpler than that.

The Past Week: April 26-May 2, 2009 (Cap & Trade Speed Bumps; Tiny Houses; Obama’s Unchecked Spending Could Doom Health, Energy Plans)

~~By InsightAnalytical-GRL

At the start of the week, before all the hoopla over the first 100 Days of Obama Hell, it seems that a pesky group of moderate Democrats were a little bit edgy. Via Kenosha Marge:

Cap and trade hits speed bumps

Supporters of legislation to address climate change expected last week’s rollout of a cap-and-trade energy plan — complete with Earth Day events and an Al Gore appearance on Capitol Hill — would boost their efforts.

Instead, what they got was an earful from a group of moderate Democratic lawmakers, many of whom represent competitive seats, who said the policy would set their already-economically hard-hit districts even further back.

MORE

But the upset isn’t limited to those in competitive, targeted seats. Some Democrats in safe seats are also concerned about the possibility of sending more manufacturing jobs overseas as well as huge increases in energy costs in areas which depend on coal for energy.

Energy costs will go up for everyone, of course, so this may not be a bad idea. I saw an article several years ago on “small houses” in one of those Sunday magazine inserts, but this may be the time for this idea!  Checkout the Tumbleweed Tiny House Company:

Philosophy

Dream Big. Build Small.

My name is Jay Shafer and since 1997 I have been living in a house smaller than some people’s closets. I call the first of my little hand built houses Tumbleweed. My decision to inhabit just 89 square feet arose from some concerns I had about the impact a larger house would have on the environment, and because I do not want to maintain a lot of unused or unusable space. My houses have met all of my domestic needs without demanding much in return. The simple, slower lifestyle my homes have afforded is a luxury for which I am continually grateful.

Shafer has plans for houses from 65 to 837 square feet and testimonials, plans, as well as pictures and videos of  houses that have been built are at the site.  They are really very nice! Can you imagine if all the “McMansions” were replaced by these little places?

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As Obama’s spending plans balloon, here’s a very succinct rundown of the problems that may be down the road.  Again, via Kenosha Marge:

Obama’s Plans May Be Doomed by Unchecked Spending: Albert Hunt

Commentary by Albert R. Hunt

April 27 (Bloomberg) — “A hundred million there, a hundred million here, pretty soon, even in Washington, it adds up to real money,” President Barack Obama declared last week, paraphrasing a line attributed to the late Republican Senate leader, Everett Dirksen.

Hunt provides a list of the political realities of all these dreams. For example:

Social Security: The Obama administration knows that curbing the growth of entitlements is critical and that Social Security is an easier target than Medicare.

Former President George W. Bush’s attempt to institute private accounts was ill-conceived. The stock market crash has killed that approach for the foreseeable future.

Not That Hard

Yet a Social Security “fix,” which should command support from the center of both parties, isn’t very elusive. It could involve progressive indexation of benefits so wealthier retirees get less, small tax increases, and a gradual increase in the retirement-eligibility age as Americans live longer.

Many congressional Democrats, including the leaders, are as rigid in resisting this as Republicans are on taxes. They have told the White House: Don’t even think about setting up a commission to deal with Social Security or other entitlements.

On each of these measures, supporters avoid discussion of the fiscal costs and wrap themselves in buzzwords: family farms, small businesses, the “death tax,” protecting seniors. “Most of it is about labeling,” Reischauer says.

The small stuff, such as Obama’s directive to his agencies to cut a total of $100 million from their budgets, may score political points for the president. He’s talked a good game on some of the bigger-ticket items, while showing no inclination to fight for them. His apologists say he has higher priorities.

If it persists, this will produce one of two train wrecks: decimating his health-care and energy initiatives or imperiling a long term, fiscally sound economy.

This is a sobering read that even Obots could understand…

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THE PAST WEEK

*By Kenosha Marge

**By Grail Guardian

Saturday Sanity: The Antidote to the Madness (May 2, 2009) ORIOLES!

While Obama Blows Off Women’s Freedom as He Celebrates His First 100 Days, the Saudis He Bows to Clamp Down on Women Even More (UPDATE 1X – Souter Leaving Supreme Court)

*Holding Out for a Hero

**Spring Finally Arrives in New York! Hurray! Photos from Highland Park (Near Rochester)

Money Matters: “Banker to the Poor” In Impoverished Countries Now Lending in U.S.; “Money Goddess” Advises Obama Administration; IMF Bonds Update

The Past Week: April 19-25, 2009 (Pakistani Women Pushing Back; French Finance Minister Christine Lagarde Speaks; Doubts About Toxic Asset Plan; UK Blogs)