November 21, 2009

C. Edmund Wright Explains and Validates the POR (Pelosi-Obama-Reid) Economy’s Existence and When It Began

Filed under: Business Moves,Economy,Taxes & Government — Tom @ 4:47 pm

NoObamaPelosiReid1109Not that he set out to do it, but Mr. Wright has brilliantly explained (HT A Traditional Life Lived):

  1. Why my call that the economy’s condition since the summer of 2008 is almost solely the fault of Nancy Pelosi, Barack Obama, and Harry Reid is absolutely correct.
  2. Why the POR (Pelosi-Obama-Reid) Economy really began when I said it did, i.e., why “going Galt got going” when it did.
  3. Why all of Dear Leader’s horses and all of Dear Leader’s men won’t be able to put what we used to know as the entrepreneurial American economy together again, unless they set aside their current mindset.

Key paragraphs of Wright’s must-read (bolds are mine):

…. politicians are equally ill-equipped to run the auto industry or the health industry or the lending industry or the insurance industry — and their determination to do so is sucking all the dynamism from the entrepreneurial class in this country.

With the threat of this administration and congress, what is the possible motivation for anyone with ideas and capital to invest his time, talent, and money into a risky endeavor? There appears to be none. In fact, there appear to be powerful incentives not to invest any time or treasure — thus an economy with almost zero creative inertia.

For Obama voters, almost zero creative inertia means almost no one is having bright ideas, starting businesses based on them, and hiring employees to help share the dream.

…. it’s different now, and there is no denying it. The (American) dream itself is being killed by legal and regulatory micromanagement. Washington is determined to employ policies to cure something that can be cured only by government getting the hell out of the way.

A small business summit in the White House will accomplish nothing unless the invitees include unions and lawyers and bureaucrats, in which case it will be devastating. When did a union or a lawyer or a bureaucrat ever start a business? How many times a day do they kill one?

And that’s the climate entrepreneurs see. Unions, lawyers, and bureaucrats gain more power and leverage every day. The big opportunity now is to spend government money: an eighteen-million-dollar government contract to create an awful Recovery.org website, SEIU union jobs in ObamaCare, bankruptcy lawyers, and perhaps carbon credit trades coming. There are ACORN-style crony contracts to be had, not to mention all the jobs created by the David Axelrod astroturfing media escapades. If you are connected or if your dream is to enrich yourself by killing the dreams of others, then the field is ripe for you.

But if you simply want to live some iteration of building a better mousetrap, this is not currently the country for you. And entrepreneurs can sense it. This is not about tax policy. It is not about health care. It is not about cap-and-trade. These are all terrible and need to be stopped, but most importantly, the dying American dream is in trouble. We now have a class of people in Washington now that will relentlessly pursue these ruinous initiatives, and a never-ending stream of similarly un-American agendas, until they are removed from power.

The businessmen are under attack, and they know it. This kind of economy cannot work — not until pigs fly, or until Barney Frank dunks on Lebron James.

The tipping point when entrepreneurs, businesspeople, and investors could sense everything Wright has described was reached in June-July 2008. Quite simply, that’s when enough of them to matter saw what was coming if Barack Obama won the presidency, and estimated that he would be the more likely winner.

Given the points Wright makes, it’s no surprise that the malaise turned into a rout at bailout time in late September and early October 2008. Pelosi, Obama, and Reid fully supported the creation of TARP, while others were dragged and/or hoodwinked into giving in to what their instincts screamed was a bad thing (and shame on all of them for doing so). Tim Geithner created the conditions that made it look necessary by, among other things, letting Lehman go under. Then of course it got even worse after Obama won and Democrats built a larger congressional majority.

Since mid-2008, it’s been their POR Economy; we’re just living and, as a country, underachieving in it.

Multiply the seriousness of every problem Wright cites by a large number if statist health care passes.

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8 Comments

  1. Tom, this proves you nailed that POR economy thing, and Sarah’s book proves you nailed this:
    http://www.bizzyblog.com/2008/08/29/you-know-who-this-helps/

    Comment by A. Browning — November 21, 2009 @ 11:35 pm

  2. Please keep telling it like it is. I think you might even be smarter than Sarah, and maybe even smarter than Rush or Glenn, and muche d=smarter than Sean.

    Comment by A. Browning — November 21, 2009 @ 11:38 pm

  3. In your first bolded, he sounds like he just found out about “The Democrat Effect.” Eventually, people will read this blog and find out months to years earlier what’s going to happen.

    How’s this?

    “I am of the opinion that B. Hussein doesn’t expect, care about, or even want a second term.” ( http://www.bizzyblog.com/?comments_popup=8118#comment-128124 )

    Report by KC Star: “In an interview with CNN in China, President Obama opened the possibility to not running for re-election in 2012 — something that no president has done since Lyndon Johnson.” ( http://primebuzz.kcstar.com/?q=node/20575 )

    Comment by Joe C. — November 22, 2009 @ 12:40 am

  4. #1, Haven’t bought or read her book, so I wouldn’t know. Please elaborate.

    #2, Thanks, but let’s not get carried away (/sarc) …. Looking back at the Aug. 29, 2008 post you linked, I didn’t do very well on the 60-40 thing at the post you linked, but I underestimated the ferocity of the media attacks on Palin, their willingness to air flat-out lies, the suicidal instincts of the McCain campaign in trying to coach her into being something she wasn’t, the willful white-guilt blindness of so many who should have known better like Peggy Noonan and other NE alleged conservatives, and the effect of “early voting” neutralizing the McCain-Palin comeback. I’m not alone in that.

    Oh, and in case you’re being sarcastic (my Karnak skills are less than perfect), you’re more than welcome to tell me why I’m wrong.

    #3, indeed true on the Dem effect. On your 2nd term assessment, his not going for another term would also conveniently play into a victimization, “he was just too good for us” meme that would hang over any discussion of the substance of what his one term will have done to us. The left would lionize him as a martyr for the cause.

    Comment by TBlumer — November 22, 2009 @ 5:13 am

  5. [...] commentsComments The Kansas City Star’s Steve Kraske, BizzyBlog’s Tom Blumer, and BizzyBlog Commenter Joe C. are all dumb as boxes of rocks. They read the following quotes and come to the conclusion that [...]

    Pingback by Breaking News from Wingnut World: Obama Won’t Run for a Second Term! — November 22, 2009 @ 1:21 pm

  6. #5, Eric, since I know you’re checking, neither Joe C nor yours truly concluded that BO is not seeking a second term:

    - Joe C quotes an article that says Obama “opened the possibility.” Nothing certain there. Previous to that, he was expressing his opinion. O-P-I-N-i-O-N. Duh.
    - My response speculated about what “would” happen if he chose not to run again. Nothing certain there either.

    Only you, the comprehension-impaired or deliberately lying, could invent any kind of implication of certainty out of absolutely nothing.

    Look in the mirror to find the person who’s either dumber than a box of rocks or a filthy deliberate liar. Which is it?

    It seems that you lie or totally miss the point almost as often as you breathe. In that sense, you make a great poster-child for your cause.

    Just add your latest lying/clueless post to the long, long list of unconditional apologies you owe before you get any respect around here. As you know, I remember them all. It’s hard to imagine why anyone would give you any respect after posting the garbage you just did.

    It’s really been something to watch you go from someone who appeared to be thoughtful to an object of pity and disdain in about four short years.

    Comment by TBlumer — November 22, 2009 @ 2:16 pm

  7. No, TB. I stand by my statement: “I am of the opinion that B. Hussein doesn’t expect, care about, or even want a second term.”

    Comment by Joe C. — November 22, 2009 @ 10:11 pm

  8. #7, Fair enough, but it IS an opinion (based on astute instinct and analysis), not some kind of statement of certainty, as #5 went with at his place of propaganda.

    Comment by TBlumer — November 23, 2009 @ 7:03 am

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