Michael View

Obamanomics: Is it Working?

22 September 2009

Like it not, Kevin Rudd and co follow the lead of the US. So, once again, I have been thinking about the US economy and what it might hold for our future.

Barack Obama was elected on a platform of change. And Washington was ready for change after eight years of the Bush Administration‘s mucking up on the world stage.

The war in Iraq, the war in Afghanistan ‘" despite the deep tragedy the world experienced on September 11, 2001 (and indeed, it was a world tragedy), we aren‘t any safer. We aren‘t any better off and, in fact, the financials are scary despite recent, sustained gains in the larger stock markets.

U.S. unemployment reached the symbolic 10% level, coming in at 10.7% in the last quarter.

It was a little over a year ago that Lehman Brothers announced it was defaulting on its debts and received and immediate infusion of government bailout money.

Insurance giant, AIG, also announced it was facing bankruptcy. AIG insures all of the home mortgages in default in the U.S. The feds pumped in an instant $80 billion to prop up a company that was ‘too large to fail.‘ So much for free economy.

The fact is, the US Government cherry-picked which companies would survive with federal loans, subsidies and tax breaks. When Merrill-Lynch came, hat in hand, they refused to bail out this commercial lender and the company collapsed under the weight of its own debt.

Read the whole article here

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