President Barack Obama will call for new government spending on infrastructure, education and research in his State of the Union address Tuesday, sharpening his response to Republicans in Congress who are demanding deep budget cuts, people familiar with the speech said.
Mr. Obama will argue that the U.S., even while trying to reduce its budget deficit, must make targeted investments to foster job growth and boost U.S. competitiveness in the world economy. The new spending could include initiatives aimed at building the renewable-energy sector—which received billions of dollars in stimulus funding—and rebuilding roads to improve transportation, people familiar with the matter said.
It should be apparent to everyone -- from the hard-to-educate Frums and Noonans of the world to legacy media -- that the Emperor truly has no clothes.
After all, the President and his sycophants in Congress have a perfect track record when it comes to centrally planning the economy.
FAIL: The "Cash-for-Clunkers" program cost taxpayers between $20,000 and $45,000 per vehicle purchased.
FAIL: The "Stimulus" program, which cost $787 billion and was rammed through Congress using the premise that, without it, unemployment would not pass 8%, has resulted in persistent 10% unemployment and 17% "under-employment" (U-6). And the tab will be paid for by your children and grandchildren.
FAIL: The $60 billion bailout of GM and Chrysler -- abrogating bankruptcy law with payoffs to various union bosses -- is an utter and complete failure. The businesses are unsustainable without a massive restructuring, including dramatically retooling union contracts.
FAIL: HAMP and other centrally planned "housing recovery" programs have worsened the housing market to the point that the current downturn represents the worst in all of American history -- even worse than the Great Depression.
FAIL: "Green jobs" in the form of weatherization programs that have been utter, cash-burning frauds and failures. A series of spot-check audits of the $5 billion program indicates that fraud is rampant -- easily 20% can be chalked up to phantom services, blatant overspending on simple items, and unverifiable expenses. But not to worry -- it's only a billion dollars of wasted money, a pittance for this administration.
FAIL: The bailout of AIG, orchestrated by the then-head of the Federal Reserve Bank of New York (FRBNY) Timothy F. Geithner, "wasted billions" of taxpayer money according to the inspector generator of the TARP program. The initial $85 billion rescue failed, forcing the Fed to pay above-market for the swaps it acquired. The result? "There is no question that the effect of the FRBNY's decision - indeed, the very design of the federal assistance to AIG - was that tens of billions of dollars of government money was funneled inexorably and directly to AIG's counterparties," according to the inspector general. In fact, the terms of the plan were so flawed that the Treasury Department had to dole out an additional $40 billion to AIG just weeks later. For his part in the debacle, FRBNY chairman Geithner was rewarded with a Secretary of the Treasury role by President Obama.
These are the economic qualifications of the very same masterminds who are in the process of nationalizing the health care sector.
It's time to turn the bums out -- and let's be quite uncivil about it.