OPINION:FORGET THE pork. Forget the waste. Forget the 8,570 earmarks – amendments to pay for projects in particular congressional districts – in a Bill supported by a president who poses as the scourge of earmarks.
Forget the “$2 trillion in savings” that “we have already identified”, $1.6 trillion of which President Barack Obama’s budget director later admits is the “savings” of not continuing the surge in Iraq )until 2019 – 11 years after George Bush ended it, and eight years after even Bush would have had us out of Iraq completely.
Forget all of this. This is run-of-the-mill budget trickery. True, Obama’s tricks come festooned with strings of zeros tacked onto the end. But that’s a matter of scale, not principle.
All presidents do that. But few undertake the kind of brazen deception at the heart of Obama’s radically transformative economic plan, a rhetorical sleight of hand so smoothly offered that few noticed.
The logic of Obama’s address to Congress went like this: “Our economy did not fall into decline overnight,” he averred. Indeed, it all began before the housing crisis. What did we do wrong? We are paying for past sins in three principal areas: energy, healthcare and education – importing too much oil and not finding new sources of energy (as in the Arctic National Wildlife Refuge and the Outer Continental Shelf?), not reforming healthcare and tolerating too many bad schools.
The “day of reckoning” has now arrived. And because “it is only by understanding how we arrived at this moment that we’ll be able to lift ourselves out of this predicament”, Obama has come to redeem us with his far-seeing programme of universal, heavily nationalised healthcare; a cap-and-trade tax on energy; and a major federalisation of education with universal access to college as the goal.
Amazing as an explanation of our current economic difficulties, this is total fantasy. As a cure for rapidly growing joblessness and a deepening worldwide recession, this is perhaps the greatest non-sequitur ever foisted upon the American people.
At the very centre of our economic near-depression is a credit bubble, a housing collapse and a systemic failure of the entire banking system. One can come up with a host of causes: Fannie Mae and Freddie Mac pushed by Washington (and greed) into improvident loans, corrupted bond-ratings agencies, insufficient regulation of new and exotic debt instruments, the easy money policy of Alan Greenspan’s Fed, irresponsible bankers pushing (and then unloading in packaged loan instruments) highly dubious mortgages, greedy house-flippers, deceitful homebuyers.
The list is long. But the list of causes of the collapse of the financial system does not include the absence of universal healthcare, let alone of computerised medical records. Nor the absence of an industry-killing cap-and-trade carbon levy. Nor the lack of college graduates. Indeed, one could perversely make the case that the proliferation of overeducated, Gucci-wearing, smartass MBAs inventing ever-more sophisticated and opaque mathematical models and debt instruments helped get us into this credit catastrophe.
And yet with our financial house on fire, Obama makes clear, both in his speech and his budget, that the essence of his presidency will be the transformation of healthcare, education and energy. Four months after winning the election, six weeks after his swearing in, Obama has yet to unveil a plan to deal with the banking crisis.
What’s going on? “You never want a serious crisis to go to waste,” said chief of staff Rahm Emanuel. “This crisis provides the opportunity for us to do things that you could not do before.”
Things. Now we know what they are. The markets’ recent precipitous decline is a reaction not just to the absence of any plausible bank rescue plan, but also to the suspicion that Obama sees the continuing financial crisis as usefully creating the psychological conditions – the sense of crisis bordering on fear-itself panic – for enacting his “Big Bang” agenda to federalise and/or socialise healthcare, education and energy, the commanding heights of post-industrial society.
Clever politics, but intellectually dishonest to the core.
Health, education and energy – worthy and weighty as they may be – are not the cause of our financial collapse. And they are not the cure.
The fraudulent claim that they are both cause and cure is the rhetorical device by which an ambitious president intends to enact the most radical agenda of social transformation seen in our lifetime.
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