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How Fear Drives Economics





As Ramrocks has mentioned, we do not usually cover political issues that have little to do with Governor Palin but I feel this is an exception.

Ed Morrissey of Hotair.com has linked to a great piece on CNN Money that discusses the recent job woes in the country. The crux of the article is that layoffs are terrible but hiring freezes are worse and that fear is “running the show,” in the words of economist Robert Brusca.

At the middle of this fear mongering is none other than “Hope” and “Change” himself, President Barack Obama. Aiding in the fear mongering is Nanny Pelosi, who is so scared that she thinks that 500,000,000 Americans are losing their job every month. Obama has warned of a “catastrophe” if his stimulus bill is not passed soon. Obama should know that scaring people in a recession will only make things worse for the country. Make no mistake, this stimulus will do nothing to help the nation’s economy, it is nothing more than a ploy for a liberal Christmas list. Obama’s response of stirring up fear does not go well with the idea that he is the new FDR or Reagan.

Let us compare Obama’s ploy of fear tactics to FDR and Reagan:

FDR’s New Deal programs did not succeed in turning around the economy but he was able to lift the spirits of the nation through his radio addresses and speeches. FDR’s optimism about the nation did something his New Deal could never do, it made Americans feel better about themselves. After listening to Roosevelt, Americans said, “hey, today was bad but tomorrow will be better and the lives of my children will be better.” Roosevelt had the right idea and the wrong policies. The right idea was that America should be a confident nation and a nation in which tomorrow would be better than today. The wrong policy was that the federal government could do it all.

Ronald Reagan faced an economic crisis greater than the one gripping the country today. Record inflation and interest rates were holding the nation hostage. Ronald Reagan came into office and decided that it was time to get America moving again. Like Roosevelt, Reagan spoke of a grand America where anything was possible but unlike FDR, he allowed the American people to create economic growth. Reagan promised to “get government out of the way,” and he did. He boldly proclaimed that, “in this current crisis, government is not the solution to our problem … government is the problem.”

Reagan’s first order of business was to institute massive “supply side” tax cuts. He dropped the tax rates across the board for all Americans and was highly criticized for it. Reagan held tough and assured the American people that his tax cuts would lead to a boom in the American economy and they sure did. Reagan urged Americans to remove their doubt and move the country forward.

Reagan believed that as Americans we had, “every right to dream heroic dreams.”

So does it surprise you that Governor Palin, in proclaiming February 6, 2008 as “Ronald Reagan Day,” mentions economics first?

Governor Palin:

WHEREAS, in 1981, when Ronald Reagan was inaugurated President, he inherited a disillusioned nation shackled by rampant inflation and high unemployment.

WHEREAS, during Ronald Reagan’s presidency, he worked in a bipartisan manner to enact his bold agenda of restoring accountability and common sense to government which led to an unprecedented economic expansion and opportunity for millions of Americans.



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