The new version of the old "New Deal" aka insanity making a comeback.
Insanity is continuously trying to do something that has been proven not to work over and over again yet expecting different result every time it's tried. The Obama idol worshiping loyalists continue to believe that Obama is very smart. If Obama is indeed as smart as they claim, why doesn't "the messiah" Obama understand the old passage of history? The passage is, "Those who don't learn from history are doomed to repeat it". The faithful became very upset when people referred to Obama as a socialist during the campaign. These very same people that were upset are about to get a lesson in real time on how much Obama is indeed a socialist and why his economic blue print from decades past is going to blow up in their faces. Franklin Dalino Roosevelt was sworn into office as President in the fall of 1932. He won in a landslide over President Herbert Hoover. The first lesson that needs to be made is that Presidents normally keep or lose their job based on the people's perception of how the economy is doing. That is the real reason why Obama won the election. Anyways when FDR took office, the great depression was already in it's four year. FDR believed that the federal government had the power to get the country out of the Great Depression. FDR enacted the banking reform laws, emergency relief programs, work relief programs, and agricultural programs. All of these socialist programs did nothing to address the problem of the economy. Many historians and economists say that it was because of FDR and his "New Deal" policies that the Great Depression was prolonged longer then it had too. Obama is going to make the same classic mistake FDR made, he's going to put his faith in government as the solution to fixing the economy instead of the free market system. Let me ask you all some questions. Can a beta tape work in a dvd player? Can a car that requires 93 octane premium gas run on 89 octane regular? The answers of course to both questions are no. Obama wants to emulate FDR in having the government to create construction jobs and build roads. On the surface it sounds good, but it was a stupid idea then and a stupid idea now. Government can't be the primary employer of a country. The economic system could never sustain itself for starters, and that country could never promote innovation and diversification to create a broad sector economic class. Let me try it a different way. Obama wants to " save OR create 2.5 million jobs" primarily in road construction, building schools etc. This is the same thing FDR did back during his time. The question should be blaring. How could FDR maintain or reverse job loses like Obama wants to do if the government is putting importance on one sector of the economy while the rest of the sectors continued to fail? Our country has way more the "2.5 million workers" spread out among several dozen different fields and professions. FDR wanted to try and fix the problem from the bottom up, when the cure was to let the free market systems work themselves out on their own. Another lesson that Obama could have learned from was with the Japanese Banking collapse during the ninety's. The Japanese Banks were buying up a lot of Real Estate in America during the 80's, when the U.S economy went into recession in the early 90's, the Real Estate downturn had an adverse impact on Japanese banks. The Japanese Government acted the exact same way our government is acting now during this banking/credit crisis. The Japanese Government tried to prop up bad banks and wouldn't let them fail. I'm sure you all heard the loud mouths in congress say that certain companies like AIG, Citi group and the big three auto companies were " TOO BIG TO FAIL" so they bailed them out. Originally the Secretary of the Treasury Henry Paulson who by the way is a liberal Democrat originally said, he was going to use the $700 billion dollar TARP fund to buy up the bad sub prime mortgages from the banks and lending institution. This would have ridden the bad loans off the bank's books and also freed up capital for the banks to lend out thus "thawing the credit market. Paulson didn't use the TARP money for it's intended purpose, he has used the money to bailout companies instead. So now as I type this, half of the $700 billion is gone and the bad paper mortgages are still clogging the credit markets. Like FDR, Obama would never let bad companies go under especially if they are companies with unions. If banks were allowed to fail, the bad mortgages of those banks would have to be written down in value until it would become attractive for investors or other rival banks to buy those mortgages. The end result would be the freeing up of the credit markets and no tax payer money would be needed. A body has the ability to heal itself in many ways, sometimes man can cause more damage then good by letting nature take care of itself. This is why Obama's New Deal version 2.0 is destine to fail and fail miserably. Obama will never learn that government tends to prolong problems and rarely fixes them. Japan and FDR are historical facts of that.