Does President Obama want the U.S. economy to decline further? Or is he just simply naïve about what is required to make the economy grow, and about the differences between “good“ and “bad“ economic policy?
I’ve pondered these questions several times since January 20th, not only in the column I write here for this publication, but on talk radio, and in columns published elsewhere. And in light of the President’s behavior within the past ten days, the questions are worth reviewing again.
Back in February and March I began stating - - in writing and on talk radio - - that this President has no intention or desire to grow the U.S. economy, but rather, wishes only to grow U.S. dependency. In my remarks, I defined “U.S. dependency” to mean a dependency on government welfare by U.S. citizens, and, ultimately, a dependency of our entire nation on China and other nations abroad.
“That’s ridiculous” I would hear in response, “why would any U.S. President want to weaken the country?” “Because in the American liberal mindset, economics is a zero-sum game” I would explain. “Other nations are economically weak, because America has become the world’s economic superpower. Weakening America economically - - even just a little bit - - will allow other nations to be a little bit stronger, or so goes the theory, and if Obama can achieve this, he will have made the entire world a more ‘fair’ place.”
It all sounds so absurd and sinister, doesn’t it? “Settle down” I was told back in March by a friend who is a mergers and acquisitions lawyer in Boston. “It’s not like he’s a closet socialist, Austin, he’s just a bit naïve about business and finance. But he’ll figure it out, and we’ll be fine.”
Okay. Let’s consider the possibility that President Obama is, simply, “a little naïve.” So was it this presumed “naivety” that led him to defy U.S. bankruptcy law, and insert himself in between a corporation and its secured creditors?
According to such law, a company in bankruptcy must pay its debts to its “secured creditors” before it pays its unsecured creditors. Not only that, in most cases, secured creditors can demand to be paid in full.
Austin Hill is an Author, Consultant, and Host of "Austin Hill's Big World of Small Business," a syndicated talk show about small business ownership and entrepreneurship. He is Co-Author of the new release "The Virtues Of Capitalism: A Moral Case For Free Markets." , Author of "White House Confidential: The Little Book Of Weird Presidential History," and a frequent guest host for Washington, DC's 105.9 WMAL Talk Radio.