Get a Backbone

Dear Friends,

Yesterday I voiced some hope that President Obama and the Democrats understood that they need to stand up for the traditional values espoused by the Democratic Party.  Then today, President Obama makes a big deal of some much needed help for the middle class "Sandwich Generation".  While this help is much needed, it does not create jobs or address the critical issues our country faces.  Then this evening the big leak of a freeze on domestic spending that is really not a freeze on domestic spending.  It doesn't cover big ticket items (Pentagon).  It covers about $477 billion and doesn't come into effect until 2011.  Oh, did I forget to mention that it has to get through Congress?  Good luck.

Unfortunately, today it seems that President Obama and the Democrats have bought into the narrative that the voters are most concerned about the deficit.  I have seen no data to suggest that the voters that got President Obama elected would place reducing the deficit above creating jobs and getting the economy going again. 

We may see some improvement in the stock market and some of that improvement may be permanent, but if our economy is to have a sustained recovery, the Federal government must spend the money that will create jobs--build, rebuild and maintain roads, schools, bridges, electrical grids, hospital, green economy projects, etc.  Private contractors will be hired to do the work and will make a profit.  They will hire people to work on the projects.  They will need capital equipment and raw materials to complete the projects which will create more jobs and private business profits.  Once people have jobs, they can spend money which will create further demand and further jobs and profits.  Its the multiplier effect from Economics 101, and it works.

It is far easier to erase a deficit with increased tax revenue because people are making more money than to cut expenses.  Right now the Federal government needs to spend money that will create jobs and not talk about reducing the deficit right now.


So it seems that President Obama and the Democrats need to get a backbone.  MoveOn.org is sponsoring emergency rallies tomorrow (Tuesday) entitled "Emergency Rallies for Democratic Backbone" (here).  We should all try to attend.  However thanks to my son at ich bin ein oberliner, I have discovered that for once MoveOn.org's approach and rhetoric is on the mild side.  As evidence I give you the following ad:



    

Thanks for reading and please comment,

The Unabashed Liberal