Democrats are Destroyers

It is alarming to hear gleeful democrats say that the mistaken policies of the last 30 years are now to be jettisoned.  What policies exactly?  In a nutshell it is the reduction of state participation in the economy.  As the chart below demonstrates, it is hard to view the policies that started with Reagan as a mistake.  More people have been lifted out of poverty worldwide both in gross numbers and as a share of the global population than at any time since the Romans forcibly civilized much of Europe, the Middle East and the Mediterranean.

This week, the lying president’s lying press secretary, Robert Gibbs, attacked CNBC’s Cramer (a democrat no less) for pointing out what should be obvious to anyone.  Democrats are destroyers.  This is what I have been telling my democratic friends all along.  We are all going to watch it happen to our country.  Why is it that at precisely the moment in history when she needs a true libertarian leaning government (not Bush mind you) that will let loose the energies of her people to rebuild after the huge mistakes made by regulators and bankers that led to this enormous credit crisis, instead she should shoot herself in the foot by electing statists to run Congress and then also the Executive?  It may be a function of the same mania that led to these problems in the first place.  Or maybe it is just dumb bad luck.

Note the first two great inflection points in the chart below.  The first occurs when Paul Volcker, the same Volcker who is advising Obama now, is hired by Reagan to break the back of the inflation.  It is hard to see because the levels at that time are dwarfed by the levels (of wealth) that occurred in the last 20 years, but in a suitable scale, it is clear.  The second great inflection occurs when Newt Gingrich leads the Republican takeover of the House in 1994.  The change in slope is just amazing.

Now, we come to 2007 when the Democrats have taken the House back.  They are seated in January.  The market continues to rise for most of the year.  But late in 2007, it was starting to become obvious that there was a real likelihood that the Democrats were going to take the executive and bolster their grip on Congress.  The result?  The S&P 500 has dropped back to 1996 levels.  Just a bit more and ALL of the gain from 1994 on will be gone.

Coincidence?  Not likely.  But this is somewhat misleading.  The 90’s of course saw the rise of the internet and technological and automation enhancements that dramatically improved output per hour worked, or productivity.  The gains of the 00’s were clearly and improperly augmented by lending gone mad.  Bankers Gone Wild!  Who will make the videotapes?

But just as I believe that the dawning of realization that Clinton was no longer going to be President broke the cult-of-personality spell that had levitated stocks (a Republican Congress to divide government also helped) and caused a decline prior to Bush actually entering office, merely on the anticipation of it, I also believe that the current massive destruction of wealth started happening as soon as people started to realize that the destroyers would take control.

I also believe that we would have had a fairly massive downturn anyway, but I also believe that we will have come out of the tailspin alot sooner if we did not have Demunists and Commocrats in charge of the whole shebang.

I had intended to write an email to McCain’s campaign to proffer the following analogy for use in the campaign.  In the end I did not because I realized the cause was lost.  But it went like this.  McCain should have communicated to the people the question:  If you are driving a car and you are distracted by something and you start driving toward the ditch and a large tree on the other side what do you do?  The prudent thing to do is to gently steer the car back onto the road and continue on your way.  What you do not want to do is to throw the wheel hard over to the left.  What will happen if you do?  The car will either catch pavement and flip over, or if the angle is a bit more shallow, it will cross over the median and into oncoming traffic.  In either case, if you throw the wheel over hard left, you will be hurt or killed, both your body and your car destroyed to one degree or another.

America must be a bad driver because she just threw the wheel over hard left.  We may just find the S&P 500 back down at 450, where it was the last time the Destroyers controlled both branches of government.

05 March 2009 Spoo Weekly
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