What is Obama's Real Goal?

President Obama has spent nearly $800 billion in an attempt to revive a slumping economy, and attempt which resulted in 9.5% unemployment. Double digit unemployment is just around the corner. The trouble with his approach to ending the recession and decreasing unemployment is that it is a purely ideological approach. Despite mountains of evidence indicating a contrary approach is warranted, Mr Obama has chosen to spend taxpayer’s money himself instead of “allowing” taxpayers to keep their money and use it to their own ends.

If his intention really was to end the recession, kick start economic activity, and return people to work, he could have taken a path followed by previous presidents. John F. Kennedy, Ronald Reagan, and George W. Bush each presided over substantial reductions in the tax burdens of Americans. Each was rewarded with significant periods of economic growth and low unemployment.

As depicted in the chart above, courtesy of the Heritage Foundation, the number of employed Americans began a steep climb almost from the moment the so-called Bush “tax cuts for the wealthy” were signed into law in May of 2003, adding nearly nine million jobs to a growing economy in four years. It is not a mystery or some form of magic. It is rational economics. Lower taxes allow people to make their own decisions about how to spend their money. Businessmen can reasonably expect to make money from investing in their businesses, increasing production, hiring new employees, and growing the economy in general.

And what is the result of the increase in economic activity? Increased revenue to the federal treasury, a reduction in the size of the annual budget deficit, high employment and growing wealth in the nation at large. The chart indicates that the change is nearly instantaneous. If, instead of forcing the pork-laden stimulus bill on the nation, Mr Obama had simply stated that he would continue the Bush tax cuts beyond their expiration next year, that would have sent a powerful message to the business community that would have resulted in an employment curve similar to the one depicted in the chart above.

Instead, Mr Obama has chosen to remain true to his ideological heritage, radical socialism, and sought a government funded solution. One really has to ask the question: Is it Mr Obama’s intention to end the recession and put Americans back to work? Or is there another goal in his mind? Better yet, one could ask the question: “If Mr Obama wanted to destroy the economic system of the United State (Free Market Capitalism) and replace it with a government-run command economy (Socialism), what would he do differently?