Europe needs a stimulus plan

According to president Obama, the European nations need to engage in more government spending to stimulate their economies. Obama also says that the austerity that the Europeans have tried so far has not worked.

If you read any of the coverage of the G-8 meetings of this past weekend or of the NATO meeting in Chicago, you heard that Obama gave the leaders of Europe this advice. It is advice that is both astounding and uninformed.

First, Obama is pushing for more spending even though more spending has not worked anywhere to get out of the recession and speed up growth. Obama's stimulus in the USA was a complete failure. The spending in Greece and Spain and Italy and elsewhere in Europe has not led to growth, only to debt. Furthermore, Obama does not even bother to discuss what sort of spending ought to be undertaken. Should it be payoffs to cronies like Obama did with the green energy "investments" like Solyndra? Should it be military spending? Should it be payoffs to political supporters like the salary support to teachers in the teachers' unions? Obama does not even bother to explain how to proceed here.

Second, Obama acts as if the large European nations have actually undertaken austerity. That is a lie. They have not cut spending. They have talked a great deal about cutting spending, but talking is not the same as doing. Obama ought to know this fact, but, if he is aware of the truth, he does his best to ignore it.

Obama's actions are the equivalent of what he is doing with Social Security and Medicare. Those programs are quickly running out of money. Obama, however, comes forward with no suggestions as to how to fix the programs. His position is that neither is bankrupt yet. Indeed, Obama's conduct reminds me of the old joke: A guy jumps off the Empire State Building. About halfway down, someone calls to him and asks, "How are you doing?" The jumper replies, "So far, so good!"

Obama and the USA may soon hit the pavement and splatter, but for now, it is so far so good. Americans need to wake up to this impending disaster. We can fix the problem with some hard work now. If Obama continues this mess in place, however, the damage will be permanent.