If Reagan offered "voodoo economics", as his opponents charged, Obama is selling Cargo Cult economics. After World War II, New Guinea aborigines build model airfields to entice the gods to bring them "cargo". They watched American soldiers build airstrips and land cargo planes, and sought to accomplish the same through sympathetic magic. Given the culture of the aborigines and their observations, anthropologists aver, making radios and observation towers out of straw and coconuts was a rational response. Something similar might be said of the position of the American middle class. Spengler, Asia Times, Jan 29, 2008.
So, what is it, exactly, that this man proposes to do? Raise the minimum wage? Okay, more unemployment. Is that what you want? No? You want more jobs? Oh, okay, so we need to become competitive with China, Russia, Brazil, and India. But that means lowering the cost of production. That will at least require energy as cheap as it is in these other countries. We can't drill? No Nuclear power? Oh, okay, we'll invest in solar energy. and wind energy. That's all well and good. So, what do we do when the sun doesn't shine or the wind doesn't blow? Might as well stay at home.
Like it or not, we are competing with the rest of the world to supply the goods and services that enrich our lives, and those of the rest of the world. When we saddle ourselves with significant competitive disadvantages, we had better have competitive advantages that greatly outweigh them.
So is there any competitive advantage to be gained in any of Obama's policies?
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