Thursday, November 13, 2008

Bush Shows Obama the Way

President George W. Bush came out fighting for free markets with a strong and stirring defense of American capitalism on the eve of the G-20 World Economic Conference. Stocks soared 550 points Thursday as Bush’s luncheon speech was played live on all the major cable networks. It was as though Mr. Bush was trying to leave an economic-primer to his successor-elect Barack Obama. Markets cheered because it’s the best thing they’ve heard in many weeks.

Here’s one of several great passages from Bush: “At its most basic level, capitalism offers people the freedom to choose where they work and what they do … the dignity that comes with profiting from their talent and hard work. … The free-market system also provides the incentives that lead to prosperity -- the incentive to work, to innovate, to save and invest wisely, and to create jobs for others.”

In other words, free-market capitalism is the best path to prosperity.

During a gloomy period of financial crisis, recession, big-government rescues, and ailing banks and industrial companies, Bush has provided a strong visionary dose of big-picture economic prosperity and optimism that can lead the U.S. and the rest of the world out of its economic doldrums.

Here’s another uplifting passage from Mr. Bush: “Free-market capitalism is far more than an economic theory. It is the engine of social mobility -- the highway to the American Dream. And it is what transformed America from a rugged frontier to the greatest economic power in history -- a nation that gave the world the steamboat and the airplane, the computer and the CAT scan, the Internet and the iPod.”

Capping all this off, Bush said, “The triumph of free-market capitalism has been proven across time, geography, culture, and faith. And it would be a terrible mistake to allow a few months of crisis to undermine 60 years of success.”

That reference to 60 years harkens back to the original post-WWII economic-rebuilding conference held in Bretton Woods, N.H., in July 1944. At that historic meeting, the U.S. and Britain led 170 delegates from around the world into a new era of free markets, free trade, and stable currencies. It was a conference of global coordination that broke down the isolationist and protectionist sentiments that upset the world order so badly during the prior 15 years.

Ultimately, the free-market system forged at Bretton Woods, which was in no small way predicated on economic prosperity, led to a triumph of Western values over Soviet state socialism. And it was President Reagan -- along with his friend, British Prime Minister Margaret Thatcher -- who applied the final blow to the now-defunct Soviet system with his rejuvenation of free-market capitalism.

So what George W. Bush seems to be saying is this: Do not discard that triumphal system just because we’ve had a rough year in the financial markets and the economy.

In a few weeks Barack Obama will inherit the mantle of the capitalist system. What will he do with this responsibility? That’s the question being asked everywhere.

Since the election, and up until President Bush’s important G-20 speech, stock markets sold off nearly 15 percent. Investors want to know if economic rewards will be encouraged or penalized. Will trade remain open and free? Will we maintain competitive businesses that can compete worldwide? Or will we resort to the protection of ailing or failed businesses?

Will the U.S. lurch toward the semi-socialism of Old Europe? Or will we stay with free-market capitalism? Will we expand the nanny-state economy? Or will we keep the door wide open to entrepreneurial spirit and gales of creative destruction?

Investors want to know which way President-elect Obama is going to go. Might he reach back to the Democratic pro-growth supply-side policies of John F. Kennedy’s tax cuts, free trade, and strong dollar? Will he opt for Bill Clinton’s free-trade and strong-dollar policies, or even his capital-gains tax cut? Or will he fall back to the hopeless government tinkering of Jimmy Carter or the welfare-statism of Lyndon Johnson?

I’m keeping an open mind on Mr. Obama during this post-election honeymoon period. After all, he stole the tax-cut issue from Sen. McCain during the election. And surely he knows the conservative red states that joined his campaign for change didn’t vote for a leftward lurch to socialism lite.

Mr. Obama has a huge opportunity and an outsized responsibility to mend and revive the economy. It may be too much to ask, but perhaps he will give President Bush’s marvelous speech a close read. There is much wisdom there. And there is no iron-clad reason why a Democrat can’t adopt the economic-growth model that has worked so well and so long for this country.

19 comments:

Intrade said...

Damon said :

    As usual, Kudlow makes bold assumptions without evidence or logic. So if all it takes is Bush defending capitalism to make the market go up 550 points, then why didn't he mention these things six months ago? Maybe he can combine this with McCain omniscience about capturing bin Laden so everything will be settled.

Here's a newsflash Larry, the people who trade in the financial markets ALREADY believe in free market capitalism. The markets are not going to go up because a politician gives a speech praising free market capitalism. Obviously the traders were reacting to 1) news that has yet to hit the market or 2) the fact that stocks look relatively cheap, not some speech by some lame duck.

Intrade said...

sloganism said :

    The President once again shows the world how much of an intellectual midget he is by settling for yet another slogan "free markets". He has never paused to think about anything. But you cannot blame him, the man cannot think. Look at him finish a sentence without a mistake, he positively beams with pride and pleasure.

This administration has drawn a lot of comfort from familiar slogans. Democracy. Freedom. Now free markets. Just words to create distracting echoes in empty minds like Kudlow's.

How does one begin to explain to these drooling idiots that the phrase "free markets" is not a fix-it-all tool? That we face a set of complex problems and clear regime shifts that requires fresh thinking. (I am sure when I said regime shift Kudlow went off on a tangent - you moron think Greenspan rethinking the so-called free market economy).

I cannot wait for the new lease to be signed on the White House.

Intrade said...

dr461 said :

    Let's see Kudlow, you ancient hack. 365 electoral votes for Obama, and a 7% majority over McShame. Over 52%, meaning a mandate and a plurality. You, on the other hand are an ancient, "has been" crying in the wilderness--the lone voice of doom, gloom and partisanship. What the hell are you doing here anyway?

Intrade said...

Rwaz said :

    An economic primer from Bush? The fight two wars and cut taxes president who never saw a spending bill he didn't like? Hey, let's cut taxes and buy Hummers, live an hour from where we work, buy a McMansion and get a job restructuring liquid securities into illiquid securities, taking our slice at every iteration. Welcome to Bush economics. Will we make it to January?

Intrade said...

Urgent said :

    Just because it does not seem to get through to you Kudlow here it is in Yiddish
Ess drek und shtarbn!!

Intrade said...

paruig said :

    Kudlow you have absolutely no credibility......what happened to that "goldielocks economy" I've heard you preaching about non-stop for the last 8 years. Your Laffer Curve and supply side economics are merely a phoney disguise for tax cuts for the wealthy. If you were right surely in 8 years we would have seen the fruits of your theories. You can't blame the Democrats yet ...they aren't solidly in power until January 2009. I think it's time to look for a new gig!

Intrade said...

GOLDILOCK's & PROPGANDA said :

    "He(Larry Kudlow) offers a tremendous wealth of insight and expertise to help investors better navigate tomorrow's evolving economic and political terrain."(see biography below if you don't believe me) This is Goldilocks? Do you really believe all the Republican propoganda B.S that comes out of your mouth. You must think the American public is plain stupid.

Intrade said...

BUSH SPEAKS. CAUSES MARKET RALLY ????? said :

    You have to be kidding me. Lets go back over 8 years, look at every speach Bush has made, and ad up the total dow points lost or gained. Bush speaking has destroyed more Dow points than any President in history.

Intrade said...

SUCKING UP. said :

    I am glad I don't have to suck up to the Republican National Committee, tout a party line, to make a living.

Intrade said...

jim said :

    Please Intrade:

Stop running this column. Kudlow is a partisan hack and a halfwit. When columns become nothing but propaganda they lose all legitimacy.

Intrade said...

Austingunner said :

    Pure ideological caca. We are seeing what unfettered and unchecked greed has the capacity of doing. Bush = BuLLsHIT

Intrade said...

epar said :

    There is no way you can call Kudlow an economist in good faith. I don't know why Intrade feels compelled to post him.

Intrade said...

mello said :

    Obama's tax cuts for the "middle class" is a redistribution of wealth. It takes from society's most efficient and productive citizens and gives to society's less efficient and productive citizens. Why is it fair that some have to pay a higher percentage on their income? The beauty of a flat percentage is that if you make more you pay more. It's already built in. Obama seems like good guy, but his tax plan blows.

Intrade said...

yep said :

    Wake me up when Larry Kudlow's Goldie Locks is dead.

Intrade said...

Nancy Brumback said :

    The capitalists and their ideologue friends have caused millions, if not billions, of dollars of wealth around the world to evaporate. And now Bush just wants more of same. No doubt Obama will salvage capitalism, just as FDR did in the 1930s. But let's have some truth after Jan 20. The capitalists moan about socialism, but who do you see in front of congress asking for a handout? The rich owners want to privatize their profits and socialize their risk. Why can't working people have the same benefit? Free market capitalism, unregulated, causes the rich to become richer while the poor become poorer. Continue this long enough and eventually things grind to a halt, which is what we are seeing now. Let us have our capitalism to incentivize innovation, etc., but do it without sacrificing the working class! Protecting the interests of workers is not socialism, it's just plain common sense. The producers out there need someone to buy their products. That's what the American Civil War was about; the south could never move forward into the future if blacks were slaves instead of consumers. You can't have capitalist production without consumers, so don't impoverish the consumers! Duh!

Intrade said...

dr461 said :

    
Obama's tax cuts for the "middle class" is a redistribution of wealth. It takes from society's most efficient and productive citizens and gives to society's less efficient and productive citizens. Why is it fair that some have to pay a higher percentage on their income? The beauty of a flat percentage is that if you make more you pay more. It's already built in. Obama seems like good guy, but his tax plan blows.>

DO YOU REALLY BELIEVE this bullshit? It is so obvious that Kudlow and his Wall Street cronies have had 8 years of unfettered access to public and private funds, with NO REGULATION. YES, no regulation whatsoever. Thus, the rich have become richer, and the average Joe (not that stupid shill, Joe the Non-Plumber) have gotten poorer. It isn't an issue of 'redistribution of wealth; it is simply to structure the financial markets, banks, and economic system to make a level playing field for the middle class to enhance their well-being. Kudlow and his buds got rich off of pension funds being raided, IRAs being plundered, and corporate execs getting 40 mill golden parachutes for fucking up corporations (yes Carly Fiorina).

It isn't "Socialism" to even the playing field so that the majority of the country can get tax breaks, and financial parity and survival--it is simply common sense.

Intrade said...

goosegoose said :

    Jeez...these right wing nuts actually believe that Bush could find his way out of anything,
much less this manufactured crisis...
No need for another bush/cheney designed 9-11..instead, steal allthe monay that we have..

and thus render any real change very difficult. the less change the less finger pointing at the repigs, thus less perceived guilt..
sop for the repigs.
Newsflash...necons renderd impotent by meltdown...after the 10 o'clock news, republican can't get it up. hahahahahah

ps..Kudlowwrite his own praise..how sad, no one else will.

Intrade said...

TO INTRDAE CEO, said :

    Why do you allow articles on your web site that insult the inteligence of your customer base. You pride yourself in the accuracy of the markets traded. I believe this is the result of a well eduacted customer base. Some of the articles posted here cannot even attempt to mask the distortion of the facts. I would suggest a clean up of the Intrade website.

Intrade said...

MakeSense said :

    >"Here’s one of several great passages from Bush: “At its most basic level, capitalism offers people the freedom to choose where they work and what they do … the dignity that comes with profiting from their talent and hard work. … The free-market system also provides the incentives that lead to prosperity -- the incentive to work, to innovate, to save and invest wisely, and to create jobs for others.”

In other words, free-market capitalism is the best path to prosperity."
EOQ


Question, Larry: If free market capitalism is the best path to prosperity, then why have countries like the USA and the UK the highest poverty levels among the developed nations? And by a wide margin.

Yes, Larry K., Bush' speech you quote was almost correct.
But let me add a few small but important corrections:

"At its most basic level, capitalism offers *rich* people the freedom to choose where they work and what they do … the dignity that comes with profiting from *other people's* talent and hard work. … ”

In reality most people have little or no freedom to chose where they work, they have no choice but work "where they can" and agree to whatever low wage they get in return.
And most of these people enjoy the dignity of seeing others profit from it.
And the government does what is needed to keep it that way.
That's the game.