Friday, February 15, 2013

Why the U.S. economy will not improve under President Obama - Part I

People do what they know best. They also tend to stay away from topics (or subjects) about which they are least comfortable.

Thus, it is logical that President Obama promotes research and education, yet avoids economics and the mathematical fundamentals of stimulating the economy.

To best understand his positioning, one need only to listen to his campaign style speeches or read his past State of the Union addresses. In all, he continually promotes the need for more research and education for all. He repeatedly says that economic growth will be derived from an educated society and that research will lead to technological advances which will fuel future manufacturing demands.

This is all true. But unfortunately, the current state of the economy borders on another recession and GDP is at or below 0%. And since the benefits of education and research may not be realized for years, one may ask: Why does the President continue to promote these as cures to our faltering economy?

The answer to this question is found in Mr. Obama's own higher education. His undergraduate degree was a major in political science with an international relations focus. He then attended law school and earned a J.D.  Neither of these degrees are mathematically oriented which is important in understanding the fundamentals of economics.

Most people learn early in their education careers that they are better in either mathematics or in English. Those who are good in math tend to study engineering, economics, math, the sciences, or medicine. Those who are good in English tend to study English, history, political science, law. Rarely do students excel in both math and English.

Mr. Obama was good in English, and therefore gravitated to law. He is an excellent speaker and reads the teleprompter flawlessly.

However, he does not seem to be very good at mathematics. Thus he stays away from hard economic issues of how business influences economic growth which then translates into increased taxable income. But, he does focus on broad social issues and simply relies on raising taxes as the means of government income.

Mr. Obama does comprehend the important need for more governmental revenue in order to pay for the social programs he promotes.

But, he is not mathematically smart enough nor creative enough to think about how to raise governmental income. This is why President Obama's only solution is to raise taxes.

As long as the President maintains this singular solution, the U.S. economy will continue to sputter because the real problem of stimulating business growth has not been addressed.

In our upcoming future posts, we will discuss:
  • Why it is wrong for the President to continually promote the "Middle Class",
  • How Mr. Obama's education policy affects the unemployment problem, and
  • Why Mr. Obama does not like the oil companies.


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