The Failure of Obama's Economic Policies

Idaho is suffering from a poor economy. I believe that Obama and almost all politicians have misdiagnosed our economic problems and their policies will make the economy worse. Obama’s policies are based upon Keynesian economics that stimulate consumption and discouraging production. This is a formula for unemployment; government budget deficits, monetary devaluation, and widespread poverty. Let me explain why.

The purpose of an economy is to produce wealth. As production increases, standards of living increase and unemployment decreases. A healthy society celebrates producers, workers, and self-sufficiency. A prosperous society maximizes the number of workers in agriculture, mining, logging, and manufacturing because these four activities are the source of wealth; at the same time keeping government and medical jobs and expenses at a minimum.

Keynesian/Obama economic policies fail because they focus on monetary policies that increase consumption and discourage production. These policies increase government jobs and the number of individuals on government programs while discouraging production through high taxation and senseless regulation.

Consider a car. A care needs both oil and fuel. Oil protects the engine while gasoline provides the power. Money is like oil. Gasoline is like production. Keynesian economics is like checking the oil every 10 minutes but forgetting to but any gas in the tank. It will not take long before the car stops moving.

Money doesn’t disappear no matter who spends it; however, wealth disappears if no one produces it and before long there is nothing to buy. The absolute lack of concern for increasing private sector production in agriculture, mining, logging, and manufacturing is the dilemma of Keynesian economics. Do you hear your politician calling for an increase in production and private sector job growth?