BY WCWINDBAG

Kirk: “Do you always multiply your repair estimates by a factor of four?”
Scotty: “How else to maintain my reputation as a miracle worker?”

Barack Obama is doing something no other President has done in modern times: he is trashing the American Economy and his predecessor on a daily basis.

When asked by Jennifer Loven of the AP if there is a risk he might lose credibility in his use of dire language used to describe the recession, the President said for the umpteenth millionth time “we are going through the worst economic crisis since the Great Depression.”

Never mind that more credible writers have debunked this statement over and over again. This from Larry Elder today:

But in the 1981-82 recession, unemployment reached 10.8 percent in 1982 versus 7.6 today. Reagan inherited an annual inflation rate of 13.5 percent, while you, sir, came in with a 0.1 percent inflation rate. Prime interest rates reached 21.5 percent at the end of 1980, compared with 3.25 percent at the end of 2008. Reagan did not ask for a “rescue” or “bailout” package. He cut taxes and slowed the rate of domestic spending. Unemployment, inflation and interest rates went down. The Treasury collected more revenue than ever.

These are just some examples of many why the 1981-82 recession was worse than today’s, but that is not the larger point: Obama talking down the economy.

From the bully pulpit, Presidents past have always spoke of hope, and a better future. Obama’s campaign was full of this rhetoric, which seems strangely absent now.

Today, questioning the One’s wisdom in pushing the largest spending bill in the history of the world, or pointing out his negative tone is “inexcusable and irresponsible” and is “to get bogged down in distraction.”

So the question is, does a President’s language, positive or negative, affect the functioning of the economy? We already know that policies announced in speeches, just like corporations announcing job cuts or record profits can send the market in either direction, so I don’t think there is any doubt. Performance is often affected by the words of an influential person.

A perfect example is Da Coach. Back in 1989, the Chicago Bears were defending division champs and 4-1 going into the fifth sixth game of the season. They had been a powerful team in the 1980s, and had not lost two games in a row in a non-strike season for several years. After a heart-stomping loss to the Houston Oilers, Coach Mike Ditka approached the media and said this:

“Am I aggravated? Yes, I’m aggravated, because I don’t remember feeling this bad in 1982 when I knew we couldn’t play football.

“Now, I don’t know if we’re capable of winning another football game. I don’t think we are at this point. This football team is in disarray and we are not very good. We looked at some of our key guys for leadership and I’m not sure I see it.

“Maybe we aren’t as tough as I thought we were. I always thought we were pretty tough, but I don’t know.”

After these comments, the Bears finished 6-10 after a 2-8 season ending slide, their worst season since Ditka became coach.

Mr. President… words matter.

Exit question: Since when is it an end to itself to pass an economic recovery and investment plan? Isn’t this just a means to an end. See Obama’s answer to Ms. Loven’s question to see if I have misread his response.

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