Zero, His Magic Number

Barack Obama, Debt, Economy, EU, Europe, Labor, Political Economy

Under Barack Obama, the misery index has risen dramatically.

“Food stamp rolls have risen 8.1% in the past year,” reports the WSJ. “[I]n August, the number of recipients hit 45.8 million.” That’s an astounding figure.

Whatever BHO claims to the contrary, the debt is only increasing: $203 Billion in the month of October. The national debt is approaching 15 trillion dollars.

Officially, close to 14 million Americans are unemployed. However, the liars at Labor (U.S. Bureau of Labor Statistics) ought to use the U-6, which includes the unemployed and people who would like to work, but who have not looked for a job recently, as well as those involuntarily working part-time. The latter is closer to 25 million. It’s all very sad.

For his part, BHO has gone tripping in Europe. Evidently, “we have the standing to lecture them.” Or perhaps the president has traveled to the Continent, ostensibly to convince Europeans to continue on the road to ruin Obama has set the US upon? Who knows? Except that his contribution to a debate about debt will be … zero, his magic number.

Centrally Planned Scarcity

Barack Obama, Business, Capitalism, Economy, Free Markets, Political Economy, Regulation

In a free market, consumers direct supply and demand. And in a free market, increased demand leads to increased supply, as producers compete with one another to meet the demand.

We are being told that there is a “shortage of crucial medicines including cancer drugs,” and that “President Barack Obama on Monday signed an executive order aimed at remedying the shortage.”

Remedying? Really? At least one of Mr. Obama’s regulatory sleights of hand will increase the scarcity it seeks to remedy: hounding drug sellers for “charging exorbitant prices for scarce medicines.” High prices for scarce goods are what help to harmonize supply and demand.

Alas, “You can’t fix stupid”. The reported shortages in 178 drug—most involving older, generic, cancer drugs administered by injection, as well as antibiotics to treat infections and nutritional drugs for patients who can’t eat—would have been rectified in an unimpeded market:

The shortfall of supply has obviously followed a sudden urgent demand for these drug. Large demand and short supply would initially send the prices of these drugs rocketing. Profits in an unhampered pharmaceutical market would signal to the many drug makers that it’s time to enter into production.

Mr. Obama, however, has taken further action to shortcircuit the street signs of the market—profits.

When there is a shortage of a good in a highly regulated market such as ours, it is safe to say that it is a result of government incursion into the economy. Somethings gets between the market and the consumer—in the case of these drugs, the culprits are Food and Drug Administration regulations and the patent system, which gives a drug company a lengthy monopoly over manufacturing.

UPDATED: Snarling Sister Is Back, In Time for Halloween (Winnie Mandela/Madam Obama)

Affirmative Action, Barack Obama, Conflict, Critique, Politics, Racism

Michelle Obama has managed to lie low since the times I described her as “Militant Mama Obama” (February 22, 2008). In that column, I ventured that, “If anything, her charmed life has made Michelle Obama more racially militant.” As the woman complained in a blatantly banal university thesis, “My experiences at Princeton have made me far more aware of my ‘blackness’ than ever before.”

But she’s back!

The Washington Times has details of the strategy undergirding M’s latest moaning:

… She will go to the opulent homes of rich people across the country to tell them how rich people are to blame for America’s woes and guilt them into giving millions for her husband’s campaign. … [How] rich people (white, of course) certainly don’t want black people to succeed. They want to squelch success based on what people look like, how much money they have. … And the Princeton graduate will tell supporters they simply can’t comprehend the significance of what’s occurring today in America. ‘It can be hard to see clearly what’s at stake – because these issues are so complicated …’

MORE.

Michelle Obama’s sentiments seep out from that festering reservoir of racial animosity—the same cesspool wherefrom the Reverends Sharpton and Jackson launch their perennial strikes.

UPDATE (Oct. 1): WINNIE MANDELA/MADAM OBAMA. Robert, there is a similarity in anger levels between the two women, although Winnie Madikizela-Mandela had considerable cause for anger. The woman had it tough. I mention Winnie in the book you just reviewed on Amazon. Winnie, moreover, was a looker, unlike MO. I saw Winnie in person when I attended Tutu’s inaugural with my dad. She was then drop-dead (if deadly) gorgeous. But I mean Beyonce beautiful.

Springtime in Israel

Economy, Israel, Israeli-Palestinian Conflict, Middle East, Technology, Terrorism

The crazies are threatening it on the north (Lebanon & Syria), the south (the lovely Egyptian revolutionaries), and the east (the Palestinian Authority, Jordan and beyond), but, as the US and most of Europe decline, Israel’s economy flourishes. Here are Israel’s fiscal fundamentals, courtesy of Bloomberg.com:

• GDP growth of 4.8 percent this year
• A raised credit rating of A+
• Very low unemployment
• “60 companies traded on the Nasdaq Stock Market, the most of any nation outside North America after China.”
• “The largest number of startup companies per capita in the world.”
• A ranking of “third in terms of projected growth this year among MSCI’s list of 24 developed economies, after 6 percent for Hong Kong and 5.3 percent for Singapore, according to the IMF.”
• “Israel’s exports are high-added value exports like informatics and technology”: This means the stuff the Israelis make adds real value and jobs, unlike Obama’s state-manufactured jobs, which are a result of moving money around.

SADLY, that thing we in the US celebrate and anticipate—the Arab spring—threatens commence, innovation and economic prosperity in the region’s most productive oasis. Some “spring” …