In Part I, I discussed the errors and mistakes made by the Obama administration to arrest the economic free-fall, that have hindered our recovery. As awful as those mistakes have been, the President was simply following the time honored tradition of jumping off a bridge because your friend jumped. In choosing to follow the Keynesian formula, Obama has taken our economies normal recovery time of 18 -24 months and extended it into the 3-5 year range. Just as we have seen happen before from Japan's lost decade to the Great Depression under FDR, such policies are very good at prolonging the bad times and preventing a quick recovery.
I contrasted our current remedies to Reagan's policies during a similar, if not worse economic predicament. As the evidence shows, the Reagan recovery took off immediately after the end of the recession and soared in an unprecedented fashion (Obama likes to use the term unprecedented falsely, but in this case the term fits). Unlike the failed Keynesian model, Reagan's supply side model worked and has been emulated across the globe to great success, especially in the former soviet satellite nations.
Today, we will discuss President Obama's plans to transform our economy. As his chief of staff Rahm Emmanuel stated, "You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things you think you could not do before." President Obama has definitely used this crisis.
During the 2008 Presidential campaign, all of the candidates made one of the most ridiculous arguments I've heard. They would all put money into creating Green jobs. This was worse than the 2000 campaign's obsession with a "lock box". Every campaign has it's ridiculous issue that seemed to make sense at the time and this was 2008's. (go back and watch the speeches from previous conventions to see what I mean - Mondale '84 is a hoot)