Thoughts Aloud

Archive for December 14th, 2008

Charles Krauthammer warns us not to be fooled by Obama’s foreign affairs cabinet picks. He is focused on domestic affairs:

As Obama revealingly said just last week, “This painful crisis also provides us with an opportunity to transform our economy to improve the lives of ordinary people.” Transformation is his mission. Crisis provides the opportunity. The election provides him the power.

The deepening recession creates the opportunity for federal intervention and government experimentation on a scale unseen since the New Deal. A Republican administration has already done the ideological groundwork with its unprecedented intervention, culminating in the forced partial nationalization of nine of the largest banks, the kind of stuff that happens in Peronist Argentina with a gun on the table. Additionally, Henry Paulson’s invention of the number $700 billion forever altered our perception of imaginable government expenditure. Twenty billion more for Citigroup? Lunch money.

Moreover, no one in Congress even pretends that spending should be pay as you go (i.e., new expenditures balanced by higher taxes or lower spending), as the Democrats disingenuously promised when they took over Congress last year. Even some conservative economists are urging stimulus (although structured far differently from Democratic proposals). And public opinion, demanding action, will buy any stimulus package of any size. The result: undreamed-of amounts of money at Obama’s disposal.

To meet the opportunity, Obama has the political power that comes from a smashing electoral victory. It not only gave him a personal mandate. It increased Democratic majorities in both houses, thereby demonstrating coattails and giving him clout. And by running on nothing much more than change and (often contradictory) hopes, he has given himself enormous freedom of action.

Obama was quite serious when he said he was going to change the world. And now he has a national crisis, a personal mandate, a pliant Congress, a desperate public — and, at his disposal, the greatest pot of money in galactic history. (I include here the extrasolar planets.)

Are you ready for a socialist paradise? ◄Dave►