Friday, January 30, 2009

Is It Obama's New Deal or Obama's New WWII

One of the benefits of receiving Ann Coulter's columns in my e-mail is the little sales pitches she makes for a purported stock genius named Mark Skousen, Ph.D.
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I wonder if Coulter gets compensated for that.
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What's interesting about today's pitch is that Coulter titled it "Obama's "New New Deal" -- and YOUR Money."
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But if I understand Obamanomics right, the Obama administration is thinks of its policy as a "New World War II" rather than a "New New Deal."
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What finally brought the American economy out of the Great Depression was the massive government spending associated with WWII.
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That's essentially what Obama wants from his stimulus package, a huge fiscal boost that lifts the economy out of its current downward spiral.
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That brings us to a big question.
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It's doubtful that the current stimulus package of $819 billion is big enough to be the fiscal equivalent of WWII. $819 billion is only 5.7% of our $14 trillion economy.
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But will he be able to get another big stimulus package out of Congress next year?

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