Larry Summers, Bill Clinton’s former Secretary of the Treasury, and Obama’s National Economic Council Director wrote a fateful memo to Obama in December 2008. Today, Investors Business Daily reveals it and quotes from it, but doesn’t provide a link to it. The New Yorker provides access to the memo, or what appears to be the same memo. Summers has tried to distance himself from bigger spending, but the memos tell a different story. Obama whined that the Stimulus (spending) wasn’t big enough. Economists whined that it was not big enough, but in the Summer’s “memo” we see the warts of viral spending.
We learn that Obama knew all the problems, knew when he distributed our wealth to Unions, green initiatives, studies to “fix” education, millions of dollars of roadway signs hearlding shovel ready projects, the “Turtle Tunnel, the border crossing in Montana with less than three trucks a month, and two cars a day ($15 MILLION), disgraced Congressman John Murtha’s airport, all the non-existant homeless people, and dead people receiving checks, a $3 MILLION water tower for 82 people, and paybacks to political bundlers, no one had a good expectation of bringing recovery to the country.
The Stimulus, the eventual bigger bloated stimulus, and the tax cuts (counted as spending as it supposedly put money in the pockets of taxpayers) were what Summers, Obama and economist had called for. It’s you, the sucker, who may have fell for the story that we spent far short of what it would take to “fix” us. It’s all in the memo.
IBS summarizes: The “memo” reveals that Obama and Company knew exactly how deep the recession would be and was. It was no surprise to the Administration, but you may believe it still. Maybe you’re repeating the same today. “Jobs created,” and “Jobs saved” were creations as well. They hadn’t a clue whether federal spending would boost the economy. The memo said it could go either way. We know the way it went, and we know the way it didn’t go. It didn’t boost the economy or create jobs.
What the memo really exposes are Obama’s many bogus claims about his economic stewardship. Among the revelations:
• Obama’s economic team wasn’t surprised by the depth of the recession. Obama has repeatedly claimed that no one knew how bad things were when they put together the stimulus. But the memo makes clear that Obama’s economists knew full well that the downturn was worse than officially reported at the time, saying “further negative revisions” were likely.
• They had no idea if the stimulus would work. The memo shows why Obama’s “created or saved” jobs claims couldn’t be trusted. Job gains from federal spending, it says, are just a “rule of thumb,” adding “there is considerable uncertainty about the effects of fiscal stimulus on output and on unemployment and jobs. We could be surprised in either direction.”
Obama said the money would get into the marketplace fast, but the Summers memo said it was impossible to spend more than $225 BILLION in a two year period. The stimulus before the “bloat” was $787 BILLION. Stuffed in Union pockets across the nation, and the Solyndras we have yet to discover. They knew temporary tax cuts would do little, but Obama bloviated then and he bloviates about them today.
The job-killing regulations: Summer warned of them. Obama signed Dodd-Frank anyway. Obama bears this self-created burden. May it be his legacy albatross, as is Jimmy Carter’s legacy of failure.