Disregard The Markets: Obama Knows What's Best For Us

President Barack Hussein Obama said of the automobile industry bailout in Cannon Falls, MN, in August, 2011, "If we're going to help you, then you've got to change your ways." Is that chutzpah and hubris, or what?  Obama continued, "You can't just make money on SUVs and trucks.  There is a place for SUVs and trucks, but as gas prices keep on going up, you have got to understand the market."  He said that while answering the first question he received.

And this from a US president who hands his own $7,500 electric-car subsidy (he proposed increasing it to $10,000) to America's upper class and wastes national resources to buy expensive electric cars for his government minions.  Obama was the one who bailed out General Motors (GM) to the tune of $49.5 billion.  And it was GM that gave us the Chevy Volt that sold wildly (1,626 vehicles in January and February, 2012, 2,289 in March, 2012), and that Obama so highly praised.

Now Obama is trying to regulate the oil market.  On April 17, 2012, Obama called on Congress to pass a series of measures that would help limit what he called speculation that, he says, is driving up the price of oil and gasoline. 

Obama said, "We can't afford a situation where some speculators reap millions while millions of American families get the short end of the stick.  We can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage and driving prices higher only to flip the oil for a quick profit." 

Obama continued, "None of these will bring gas prices down overnight.  But they will prevent market manipulation, and help protect consumers." He also said, "It wouldn't be fair. That's part of what's going on in a lot of these markets."

The White House offered no evidence that market manipulation is taking place, but Obama still wants to spend an additional $52 million to watch speculators.

"Washington should not be in the business of picking winners and losers," said Rep. Paul Ryan (R-WI) in his response to President Obama's State of the Union speech.  But by manipulating markets that is exactly what they are doing. 

So far in his presidency, Obama has favored certain business interests over others and ensured that campaign donors are well taken care of.  Obama selected General Electric (GE) chief Jeffrey Immelt to head his Council on Jobs and Competitiveness.  That is the same GE that was among the top corporate donors to Obama's 2008 presidential campaign, and that has interests in both renewable energy and China, interests aligned with those of the White House.

The economic stimulus was no different.  Bush started it, but Obama perfected it.  He took federal money, with little oversight, and handed a large portion of it to specific entities deemed "too big to fail," such as the banking industry and the auto industry.  Obama's 2009 Stimulus spent a lot of money, and specifically in these areas:

  • Housing and Cars: Buyers could get a modest break: If you were in the market for a new car or your first house, the stimulus bill offered modest tax breaks for both kinds of purchases.

 

  • Energy: Weatherizing homes will save money: The stimulus plan provided about $50 billion for a clean-energy future, including money or tax credits for Americans to weatherize their homes and buy hybrid cars. It also committed dollars to upgrading the electricity grid and underwrite renewable energy projects.

 

  • Broadband/Internet Access: Help for rural areas: Included is $7 billion for broadband deployment in rural markets across the USA. High-speed Internet access is counted as "infrastructure" spending. Under the Bush administration, broadband service was treated as a luxury. But the Obama-backed stimulus package treats Internet communications as an essential service.

 

  • Safety Net: Jobless got a little extra help: Many of those who are unemployed got a boost from the stimulus bill, including a $25 increase in weekly benefit checks.

ProPublica has a detailed list of stimulus spending.

And now he wants another stimulus.

So unless you were unemployed or work(ed) in these segments of the market, the stimulus did you no good.

Speaking of energy, Obama's intervention into the energy market has been breath-taking.  He pushes green or clean energy, while at the same time demonizing fossil fuels.   His promotion of his failed green energy policy and the green energy industry through taxpayer backed loans and/or subsidies is well known.  This is a very visible example of Obama trying to influence the market and have us do what he knows is best for us.

This is exactly the kind of market manipulation, favoritism, and pay-to-play politics that Obama promised would be over when he was elected.  Every president identifies its friends for largesse.  But no president before has promised so earnestly to end Washington's "culture" only to cozy up to it so quickly and completely as Obama.

Dr. Beatty earned a Ph.D. in quantitative management and statistics from Florida State University.  He was a (very conservative) professor of quantitative management specializing in using statistics to assist/support decision-making.  He has been a consultant to many small businesses and is now retired.  Dr. Beatty is a veteran who served in the U.S. Army for 22 years.  He blogs at rwno.limewebs.com.

President Barack Hussein Obama said of the automobile industry bailout in Cannon Falls, MN, in August, 2011, "If we're going to help you, then you've got to change your ways." Is that chutzpah and hubris, or what?  Obama continued, "You can't just make money on SUVs and trucks.  There is a place for SUVs and trucks, but as gas prices keep on going up, you have got to understand the market."  He said that while answering the first question he received.

And this from a US president who hands his own $7,500 electric-car subsidy (he proposed increasing it to $10,000) to America's upper class and wastes national resources to buy expensive electric cars for his government minions.  Obama was the one who bailed out General Motors (GM) to the tune of $49.5 billion.  And it was GM that gave us the Chevy Volt that sold wildly (1,626 vehicles in January and February, 2012, 2,289 in March, 2012), and that Obama so highly praised.

Now Obama is trying to regulate the oil market.  On April 17, 2012, Obama called on Congress to pass a series of measures that would help limit what he called speculation that, he says, is driving up the price of oil and gasoline. 

Obama said, "We can't afford a situation where some speculators reap millions while millions of American families get the short end of the stick.  We can't afford a situation where speculators artificially manipulate markets by buying up oil, creating the perception of a shortage and driving prices higher only to flip the oil for a quick profit." 

Obama continued, "None of these will bring gas prices down overnight.  But they will prevent market manipulation, and help protect consumers." He also said, "It wouldn't be fair. That's part of what's going on in a lot of these markets."

The White House offered no evidence that market manipulation is taking place, but Obama still wants to spend an additional $52 million to watch speculators.

"Washington should not be in the business of picking winners and losers," said Rep. Paul Ryan (R-WI) in his response to President Obama's State of the Union speech.  But by manipulating markets that is exactly what they are doing. 

So far in his presidency, Obama has favored certain business interests over others and ensured that campaign donors are well taken care of.  Obama selected General Electric (GE) chief Jeffrey Immelt to head his Council on Jobs and Competitiveness.  That is the same GE that was among the top corporate donors to Obama's 2008 presidential campaign, and that has interests in both renewable energy and China, interests aligned with those of the White House.

The economic stimulus was no different.  Bush started it, but Obama perfected it.  He took federal money, with little oversight, and handed a large portion of it to specific entities deemed "too big to fail," such as the banking industry and the auto industry.  Obama's 2009 Stimulus spent a lot of money, and specifically in these areas:

  • Housing and Cars: Buyers could get a modest break: If you were in the market for a new car or your first house, the stimulus bill offered modest tax breaks for both kinds of purchases.

 

  • Energy: Weatherizing homes will save money: The stimulus plan provided about $50 billion for a clean-energy future, including money or tax credits for Americans to weatherize their homes and buy hybrid cars. It also committed dollars to upgrading the electricity grid and underwrite renewable energy projects.

 

  • Broadband/Internet Access: Help for rural areas: Included is $7 billion for broadband deployment in rural markets across the USA. High-speed Internet access is counted as "infrastructure" spending. Under the Bush administration, broadband service was treated as a luxury. But the Obama-backed stimulus package treats Internet communications as an essential service.

 

  • Safety Net: Jobless got a little extra help: Many of those who are unemployed got a boost from the stimulus bill, including a $25 increase in weekly benefit checks.

ProPublica has a detailed list of stimulus spending.

And now he wants another stimulus.

So unless you were unemployed or work(ed) in these segments of the market, the stimulus did you no good.

Speaking of energy, Obama's intervention into the energy market has been breath-taking.  He pushes green or clean energy, while at the same time demonizing fossil fuels.   His promotion of his failed green energy policy and the green energy industry through taxpayer backed loans and/or subsidies is well known.  This is a very visible example of Obama trying to influence the market and have us do what he knows is best for us.

This is exactly the kind of market manipulation, favoritism, and pay-to-play politics that Obama promised would be over when he was elected.  Every president identifies its friends for largesse.  But no president before has promised so earnestly to end Washington's "culture" only to cozy up to it so quickly and completely as Obama.

Dr. Beatty earned a Ph.D. in quantitative management and statistics from Florida State University.  He was a (very conservative) professor of quantitative management specializing in using statistics to assist/support decision-making.  He has been a consultant to many small businesses and is now retired.  Dr. Beatty is a veteran who served in the U.S. Army for 22 years.  He blogs at rwno.limewebs.com.

RECENT VIDEOS