The victory of failed ideas

History will be puzzled looking back at the years from 2008 to 2010 at the peculiar victory of ideas that had failed. Fundamentalists advocating free-market have been in the wrong about nearly everything but strangely they are now dominating the political scene more strongly than before.

Despite the crisis of banks bringing the economy down to its knees there is a cry of dispensing with regulators. These were the words of Ron Paul who is about to occupy an important position in the House panel monitoring the Federal Reserve. The experiences of Clinton (raised taxes presiding over a stunning growth) and Bush (cut taxes presiding over pale growth prior to the crisis) all seem to be forgotten otherwise how could a bipartisan nod be given to additional tax cuts.

The right answer is that the failures of the Obama government on the economic field are proof that big-government failed. But what about the policies of the big government?

The Obama stimulus that itself accounted for 40% cuts in taxes was too hesitant and weak to turn around the economy. Many of the economists warned from the very start that the plan was insufficient. It was a programme that actually led to a fall in government employment and spending by the government on services and goods. It grew more gradually than during the era of Bush.

Perhaps the Obama team could not do more because of Congressional restraints. This goes to prove the hold failed doctrine has over politics.

Why did Obama-economics fail? The predictions of the right were wrong. For two years the warning was that borrowing by the government would push up interest rates to touch the sky. The fact is that the rates have swung causing opinions about recovery to jump from hope to despair. But the rates have remained low – an all time record.

Then there was warning about inflation – perhaps hyper-inflation. In reality there was dis-inflation with core-inflation excluding food and fuel; it is the lowest in 50 years.

The trouble is that those who have tried to end the dominance of failed ideas have ultimately come to compromise with it; this can be said of President Obama. Obama has tried to reach out covering up the myths of rightist thinking. He took on the GOP tone of talking saying that the government has to opt for austerity even with the threat of another recession and symbolically froze spending and wages of the feds.

Find more info at texasforeclosuresforsale.com