President Obama is giving out financial advice at the G8 Summit and he’s undermining Andrea Merkel in the process. He told the G-8 to ease up on austerity.
Obama wants the EU to continue feeding the beast of an entitled society. He supports welfare for the middle class. He is also very concerned about his re-election chances if Europe fails.
Kicking the can down the road with another huge stimulus would give Obama the months he needs.
Is it surprising that our socialist president is more socialist than Andrea Merkel and more aligned with the radical socialist Hollande?
Obama wants the EU to ease up on austerity and follow his model of tax and spend. Obama seems to believe that this tax and spend approach will bubble over into a vibrant growth agenda, even more so when he adds burdensome government regulations.
Boston.com posted the following in support of President Obama’s two cents –
“What you got in the United States was some stimulus, some cuts, but mostly a focus on growth,” said Boston University international relations Professor Vivien Schmidt, in a phone call from Italy. “What you have seen in Europe was all about austerity and making everyone agree to very rapid deficit reduction. Yes, structural reform is important. Yes, you need to worry about deficits. But austerity hasn’t worked economically and we are seeing the effects politically.”
The professor has misinformation if she thinks we did some stimulus and some cuts. We did a lot of stimulus and negligible cuts.
The EU was doing better than we were when we had our dueling stimulus packages (theirs was roughly a quarter of ours). Their downfall is not related to their lack of wild spending. Germany and Austria are faring better because they watch the spending.
Greece had a profligate welfare state and the results are not surprising.
France has a burdensome Big Government which is about to grow a lot bigger under Hollande and they will be in far worse shape because of it.
Obama believes that austerity in the long term is beneficial – when will that happen here, might I ask?
The U.S. recovery, which is often described as fragile, includes high unemployment. Can we really consider it a recovery if there is no significant improvement in the jobs situation?
President Obama wants free trade – he says – as he adds regulations and outsources our economy.
He also wants taxes on the rich, including a global tax. The global tax is one of his “growth agenda” items. It would create a permanent global slush fund that is supported by the global tax placed on “rich” businesses from “rich” nations. It will be used in a similar fashion to the U.S. stimulus – expect to see more shrimp on treadmills.
Obama and Hollande want “investments” which are “taxes” in newspeak.
Obama has reportedly aligned himself with Mario Monti of Italy who also urges a strong growth agenda with radical measures.
Monti has done a decent job of fiscal belt tightening by all accounts.
Prior to the G8 Summit, Monti said –
“Now is not the time to drop our guard,” he warned.
“Italy is not asking for less discipline on public finances but for more attention to growth with courageous and ambitious initiatives…The next few weeks will be decisive for our country and for the European Union.”
While Mario Monti does agree with leveling radical “growth” measures, he also believes in austerity, not something we have seen from President Obama so far. Perhaps he will follow Mr. Monti’s leadership on austerity.
Obama greeted Monti on Friday with, “Hopefully we’ll get some stuff done.” When President Obama is involved, I’m always hopeful he will not “get stuff done.”
Obama’s global minimum tax will subject our businesses to global bureaucracy. The “shared sacrifice” mentioned in the video below is PC for wealth redistribution.
Read more here: Finance Yahoo…More information here at the Chicago Tribune