Commentary: Obama’s speech will show government isn’t answer

Darrell Delamaide is an unusual commentator: while he clearly has his own politics, he tries to provide analysis, and not just talking points. Case in point, this column.

The measures being previewed (leaked) — extending payroll tax cuts, business tax credits for hiring, patent reform (huh?) — are just so much small ball, which is all that Obama can play now because of political and budget constraints. He’ll detail the plans in a prime-time speech before Congress on Sept. 7, the White House said Wednesday. So Ronald Reagan and the Republicans are right: Given the current state of play, government is definitely not the solution. Republican obstructionism and Democratic timidity over the past 2 1/2 years have seen to that. 

Not sure what that Reagan reference means, but certainly Republican obstructionism and Democratic timidity over the past 2 ½ years have accomplished nearly nothing.

But here’s the real irony: Private business, without the benefit of significant government help, may step up and give the economy enough lift to get Obama re-elected.

Not exactly without government help: the low level of taxation and the effectiveness of lobbyists in tailoring legislation for the benefit of business are of big help.

Historians can bewail the fact that enlightened policies were available that could have ameliorated the situation. But in a climate where widely accepted scientific theories like evolution and global warming are rejected by willfully ignorant politicians, it’s no surprise that Keynesian management of aggregate demand — one obvious solution to our problems — would also be spurned.

When major political candidates speak of doubting the reality of human causes of global warming to audiences who also do not believe in evolution, mature and effective economic policies are not going to be forthcoming.

So we are left with Adam Smith’s world, with its harsh business cycle and merciless treatment of the working class. Fortunately, some of the shock absorbers, built in by Keynes and other enlightened policy makers before the new Dark Ages of economics descended on us, continue to function and shield us from the worst. 

It is amazing to see middle class voters support ideologues who pander to their fears and ignorance while pushing legislation that enriches the already-rich by taking wealth away from all others – or, perhaps, not so amazing.