Don't cry for Obama America! - The Argentina Scenario

Familiar Scenario from Juan and Eva Obama. 

The Obamas, Juan and Eva

He even supports Argentina against Britain for the Falkland Islands! 

The Argentina Scenario by Jay Hallen - City Journal

The Obama administration’s familiar economic mistakes

2 November 2012

The opening decade of the twenty-first century has seen a slow but distinct decline in American capitalism. Economic policy has become increasingly overrun by central planning, redistribution, and government picking of industrial winners and losers. Beginning about half a century ago, those elements helped sink another free-market powerhouse—Argentina. While Barack Obama is no Juan Perón, the president’s misguided policies threaten to squander our economic advantages, just as Perón’s did in Argentina.

Government intervention in the housing market, caused by low interest rates; direct subsidies, such as the home-mortgage interest-tax deduction; and the market distortion caused by Fannie Mae and Freddie Mac—the two state-backed entities that make virtually all home loans now—has helped throw the American economy into a tailspin. A rerun threatens to occur in the student loan market and perhaps also health care, two areas where the government now plays an outsize role in financing and subsidies. Subsidies and bailouts to favored sectors have come at substantial cost to the taxpayer. The notion of “too big to fail” removes banks’ incentives for responsible risk-taking, while the Fed’s continued “quantitative easing” plays to the American consumer’s worst instincts: the over-leveraging that brought about the current crisis in the first place. Meanwhile, the U.S. Treasury retains a 27 percent stake in General Motors and refuses to sell its shares lest it realize a multibillion-dollar loss. But with government-subsidized Chevy Voltslosing $49,000 per car, any increase in GM’s share price seems a long way off.

President Obama’s response to the Great Recession and then a pallid recovery has been guided more by “fairness,” a thinly veiled code for redistribution, than by free-market principles. As it stands now, the top 1 percent of Americans generate 16 percent of the nation’s income butpay 40 percent of the income tax. This isn’t enough for Obama: he’s pushing for still-higher taxes on those who create jobs while increasing transfer payments and entitlement spending for everyone else. Recent publication of a 1998 video in which Obama declares, “I actually believe in redistribution,” helps reveal the philosophical underpinnings of his economic agenda.

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