2008 Financial Crisis


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Real Ways To Reclaim Freedom For America
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Need and Demand: Newly elected President Obama reacted to the 2008 financial crisis by enacting a so-called stimulus plan of removing tremendous amounts of freedom from the American economy. As we have already seen, government stimulus does not stimulate the economy – it instead creates a stagnant economy. Need becomes overwhelmingly dominant, and demand disappears. See for your self.

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Creeple economists who signed either the 2003 or 2009 economic petitions: They should be asked why they have not resigned in disgrace, and whether they have paid back their stolen tax cuts, as stipulated by universal Democratic Party doctrine.
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• Jonathan H. Hamilton University of Florida • Douglas Harris Florida State University • Ira Horowitz University of Florida • Ann Horowitz University of Florida • Frederick R. Strobel New College of Florida • Paul Swaim OECD • Scott J. Brown Raymond James & Associates • Richard Fryman University of West Georgia • Robert E. Moore Georgia State University • William C. Schaniel State University of West Georgia • Lawrence W. Boyd University of Hawaii – West Oahu • Bill Ferguson Grinnell College • Mark Montgomery Grinnell College • Bonu Sengupta Grinnell College • Bradley W. Bateman Grinnell College • Janet Seiz Grinnell College • Suzanne Wallace Central College • Martin C. Spechler Indiana University – Purdue University Indianapolis • George M. Von Furstenberg Indiana University • David Hummels Purdue University • Dan Kovenock Purdue University • James C. Moore Purdue University • Timothy N. Cason Purdue University • Teresa Ghilarducci University of Notre Dame • Charles K. Wilber University of Notre Dame • Martin H. Wolfson University of Notre Dame • Esther-Mirjam Sent University of Notre Dame • Ron Baiman University of Illinois – Chicago • Steven Cohn Knox College • Sidney Davidson University of Chicago • Robert J. Gordon Northwestern University • Fred Gottheil University of Illinois – Urbana • Walter W. McMahon University of Illinois at Urbana Champaign • Bruce D. Meyer Northwestern University • Michael Wallerstein Northwestern University • Burton A. Weisbrod Northwestern University • Robert M. Coen Northwestern University • Brian J. Peterson Manchester College • Samuel Rosenberg Roosevelt University • William A. Barnett University of Kansas • W. Robert Brazelton University of Missouri – Kansas City • Mehrene Larudee University of Kansas • Joshua L. Rosenbloom University of Kansas • Harry G. Shaffer University of Kansas • Gary E. Clayton Northern Kentucky University • John Gilderbloom University of Louisville • Peter B. Meyer The E.P.Systems Group, Inc. • Carl Simkonis Northern Kentucky University
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……..Need and Demand: Newly elected President Obama reacted to the 2008 financial crisis by enacting a so-called stimulus plan of removing tremendous amounts of freedom from the American economy. As we have already seen, government stimulus does not stimulate the economy – it instead creates a stagnant economy. Need becomes overwhelmingly dominant, and demand disappears. See for your self.

Premise: The 2008 financial crisis was the result of essentially the same creeplenomics marketplace interference that caused the infamous 1929 stock market crash (there were other factors, but these were the two main ones). As noted a few pages ago, the Federal Reserve controls interest rates. Again before 2008 (just as in 1929), the Federal Reserve had artificially kept interest rates low, encouraging reckless consumer borrowing and little saving. This time, instead of the threat of a tariff and trade war, creeple in the government piled on by mandating that the banks lend to high risk borrowers, despite objections from the financial sector. In 2008 when a climax of loans began to default, the markets crashed, similar to 1929. President Obama’s response has been almost identical to Presidents Hoover’s and Roosevelt’s in the 1930s – more government spending, bigger government, more debt, more regulations, and picking winners and losers for subsidies and punishment (textbook creeplenomics). The result has been the Obama Malaise. All you have to do is look at some governance indicators. (As you examine the following graphs and stats keep in mind that President Obama’s stimulus plan was implemented in February, 2009.)

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Unarguable Evidence of Obama Stimulus Failure

Disappearing Workers

Jobless Recovery

Obama Hockey Stick

Obama Hockey Stick

GDP Comparison

Home Ownership Rate

Income Index

Household Income Index

Full Time Employees Versus Population

Black Median Income

Civilian population employed: Down from 66% in 2008 to 63.2% in 2013

Household median income (2012 dollars): Down from $55,627 in 2007 to $51,017 in 2012

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Creeple economists who signed either the 2003 or 2009 economic petitions: They should be asked why they have not resigned in disgrace, and whether they have paid back their stolen tax cuts, as stipulated by universal Democratic Party doctrine.
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• Tom Cate Northern Kentucky University • Frank Ackerman Global Development and Environment Institute • Randy Albelda University of Massachusetts – Boston • Alice H. Amsden Massachusetts Institute of Technology • Michael Ash University of Massachusetts – Amherst • M.V. Lee Badgett University of Massachusetts – Amherst • Francis M. Bator Harvard University Kennedy School of Government • Sandy Baum Skidmore College • Olivier Blanchard Massachusetts Institute of Technology • Barry Bluestone Northeastern University • James K Boyce University of Massachusetts Amherst • Ralph Bradburd Williams College • Robert Buchele Smith College • Jim Campen University of Massachusetts – Boston • Jens Christiansen Mount Holyoke College • Alan Clayton-Matthews University of Massachusetts – Boston • David C. Cole Harvard University • James R. Crotty University of Massachusetts • David Danning Massachusetts Teachers Association • Peter B. Doeringer Boston University • James S. Duesenberry Harvard University • David T. Ellwood Harvard University, Kennedy School of Government • Gerald Epstein University of Massachusetts – Amherst • Rashi Fein Harvard University • Franklin M. Fisher Massachusetts Institute of Technology • Diane Flaherty University of Massachusetts – Amherst • Daniel Flores-Guri Skidmore College • Nancy Folbre University of Massachusetts – Amherst • Richard G. Frank Harvard University • Jeffrey Frankel Harvard University • Kevin Gallagher Global Development and Environment Institute, Tufts University • Marshall I. Goldman Wellesley College • Neva R. Goodwin Tufts University • Peter Gottschalk Boston College • Jerry R. Green Harvard University • Deborah Haas-Wilson Smith College • Jonathan M. Harris Tufts University • Carol E. Heim University of Massachusetts – Amherst • James Heintz University of Massachusetts • Joni Hersch Harvard Law School • J. K. Kapler University of Massachusetts – Boston • Roger T. Kaufman Smith College • Carl Kaysen Massachussets Institute of Technology • Marlene Kim University of Massachusetts – Boston • Kevin Lang Boston University • Robert Z. Lawrence Harvard University • George C. Lodge Harvard Business School • Lisa M. Lynch Tufts University • Catherine Lynde University of Massachusetts – Boston • Arthur MacEwan University of Massachusetts – Boston • Michael Manove Boston University • John A. Miller Wheaton College • Fred Moseley Mount Holyoke College • Richard J. Murnane Harvard Graduate School of Education • Richard A. Musgrave Harvard University • Julie A. Nelson Tufts University • Eva Paus Mount Holyoke College • Karen A. Pfeifer Smith College • Michael J. Piore Massachusetts Institute of Technology • Robert Pollin University of Massachusetts – Amherst • Dani Rodrik Harvard University, Kennedy School of Government • Janis A. Russell University of Massachusetts – Amherst • Bruce R. Scott Harvard Business School • William G. Shepherd University of Massachusetts • Betty Frances Slade Harvard Institute for International Development (ret.)
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Poverty rate: Up from 13.2% in 2008 to 15% in 2012

SNAP participation (food stamps): Up from 28 million in 2008 to 47 million in 2012

Question: Can you now see the Obama Malaise?

Conundrum: Millennials especially should think about this. Government debt has multiplied under President Obama. So has consumer debt. If you are a millennial you are probably in debt up to your ears in student loans, or you are in the process of doing so. I have a question for you. What happens when interest rates go up and you are stuck in a job for which you are way overqualified and underpaid (if you are lucky enough to have a job)?

[If you are a millennial with a large student loan, now you have something to legitimately fear.]

Explanation: When interest rates rise again (and they will, sooner or later), paying that interest on huge government debt will prevent the creeple in government from offering the entitlement programs that they offer today, and the creeple running it will be forced (at least in their minds) to massively raise taxes. Who are you going to run to for help when the debt collector and the tax collector both show up at your door and big-mommy government can’t borrow any more money to bail you out? (Failing to pay personal debt usually results in bankruptcy, and failing to pay taxes often results in jail time.)

Conclusion: Let’s not wait 17 years to implement austerity measures of freedom from big-mommy government to fix the American economy.

Freeplenomics and Creeplenomics: The Obama Malaise is a textbook example of an economy without demand (creeplenomics). Freeplenomics is the cure.


[This page is from The Paranoid Quiz website. To understand the context take the quiz.]
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