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Point: Obama Administration "Most Anti-Market" in U.S. History

Posted Sep 03, 2009 02:58pm EDT by Aaron Task in Newsmakers, Recession
Related: FNM, FRE, XLF, ^dji, ^GSPC, SPY, DIA
The top question in economic circles these days is whether it's time for the government to head for the exits and reign in the stimulus. Both the minutes of the August FOMC meeting and comments from Treasury Secretary Tim Geithner suggest major policymakers think it's too soon to take action.

It's debatable whether the $787 billion stimulus package is really helping the economy, or if the Fed should stop its various and sundry emergency programs, says Charles Ortel, managing director of Newport Value Partners, an independent research firm.

But there's a more fundamental issue at hand: Barack Obama is running "the most anti-market administration in the history of the Republic," says Ortel, expressing a view that's shared by many right-leaning Americans these days.

As evidence, Ortel cited Obama's reliance on House Financial Services Chairman Barney Frank, who recently advocated Fannie Mae and Freddie Mac lower their lending standards for condo buyers. "This is ridiculous stuff and the taxpayers are now saddled with the debt of Fannie Mae and Freddie Mac." (Click here for Rep. Frank's defense of claims he's responsible for the housing bubble and blocked reforms of Fannie Mae and Freddie Mac.)

More generally, Ortel cited expectations for higher taxes and a "schizophrenic" policy regarding employment. "We say we want to encourage [hiring] but we pile costs and regulations and uncertainty and risk on the private sector," he says. "The government needs to think carefully about whether it is pro-capitalism or anti-capitalism. We need to step back and understand creating wealth is a good thing."

Concerns about the Obama administration's commitment to capitalism are one reason why Ortel believes we're heading for "the worst of all worlds," as discussed here.

Editor's note: Stay tuned for a "counterpoint" segment on this question from a guest with a more left-leaning perspective.

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