Even before taking office, Mr. Obama liked the financial bailout and the stimulus. As a senator, he voted for TARP. And, after the election and before he took office, he said:
There is no disagreement that we need action by our government, a recovery plan that will help to jumpstart the economy.
President-Elect Barack Obama, JANUARY 9, 2009
Later, CATO took
out an ad pointing out
With all due respect Mr. President, that is not
Notwithstanding reports that all economists are now Keynesians and that we all support a big increase in the burden of government, we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s. More government spending did not solve Japan'slost decadein the 1990s. As such, it is a triumph of hope over experience to believe that more government spending will help the U.S. today. To improve the economy, policymakers should focus on reforms that remove impediments to work, saving, investment and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth.
This statement was true then. It still holds.
Mr. Obama (along with McCain, Bernanke, Paulson and everyone else who seemed to be running around in panic) was on the wrong side of the equation. He still is.