Apparently being the Governor of Michigan requires you to also serve as the Apologist Czar. On the talk shows this weekend, Governor Granholm was dispensing more of her priceless economic wisdom. Here are some snippets:
"It would have been so much worse," Granholm said during a roundtable discussion that included former Massachusetts governor and Michigan native Mitt Romney and former Fed chairman Alan Greenspan. "These companies would have been liquidated."
Granholm, as did President Obama during his weekly address, criticized Wall Street, saying tight credit was inhibiting a retooling of the Michigan economy. She said auto suppliers hoping to diversify have been shut out from the necessary loans. "That is wrong," she said.
On the first. So we were warned that if we didn’t spend almost a trillion dollars, unemployment might go over 9%. So we did and it went to 10%. So the economy got worse and it only cost us $787,000,000,000 and now Obama wants to spend more. We spent almost a trillion dollars in borrowed money and got nothing to show for it but higher unemployment and a higher national debt. Well done, please do spend more!
On the second. Um, one of the big problems that led to this recession is the housing bubble which was created by credit standards being too lax. So lenders, i.e. evil Wall Street, have rightly tightened up credit because they have so much bad debt already on their books. It would be enormously helpful if Jenny or any of the apologists for the Obama administration actually had a clue about how the economy works, how the credit markets operate, how capitalism itself functions. When you already have a huge book of bad loans, you don’t make more risky loans. You tighten up your underwriting and reduce your risk until the bad loans clear off your books. This is what happens when you have a Canadian governor.
The two headed mantra monster we hear daily is “It would have been worse if we hadn’t spent $787 billion” and “we inherited this mess”. These two prongs of Obama’s defenders are ridiculous. First, I don’t think there is a lick of evidence that the stimulus did anything at all to improve the economy. The argument that “it would have been worse” is impossible to prove and is nothing but political cover. Second, Obama didn’t “inherit” anything. He chose to run as President and regardless of the circumstances, his solutions or lack thereof are subject to scrutiny. Every President faces any number of crises. That is part of being President. As the President’s poll numbers show, the American people aren’t drinking the Kool-Aid anymore and these empty rhetorical excuses are ringing hollow.
Is it 2012 yet?