President Obama stole money from retired teachers and police officers, and it’s wrecking the entire economy
During the Chrysler bankruptcy, President Obama violated the Fifth Amendment and more than 150 years of bankruptcy law by illegally treating secured creditors worse than unsecured creditors. Some of these secured creditors were retired teachers and police officers from Indiana.
The negative effects of this are going far beyond those retired teachers and police officers. When laws and contracts can be arbitrarily and illegally violated by the very same government that is supposed to be enforcing those laws and contracts, all of society is worse off. The uncertainty created by this means that lending and investing have become more risky, so it has become harder for businesses to acquire capital to expand and create new jobs.
This is one of the reasons why the unemployment rate remains so high. Since we now have a President who illegally rewrites contracts long after they were signed, people are terrified of the uncertainly that this creates.
Here are some quotes from some experts about this:
Richard A. Epstein, a law professor at New York University School of Law, wrote:
“Upsetting this fixed hierarchy among creditors is just an illegal taking of property from one group of creditors for the benefit of another, which should be struck down on both statutory and constitutional grounds.”
Todd Zywicki, Professor of Law at George Mason University School of Law, wrote that Obama’s treatment of secured creditors was:
“… dangerous to the rule of law.”
The Economist wrote that Obama’s actions could:
“… establish a terrible precedent. Bankruptcy exists to sort legal claims on assets. If it becomes a tool of social policy, who will then lend to struggling firms in which the government has a political interest?”
Francis Cianfrocca, the CEO of Bayshore Networks, wrote that Obama’s actions were:
“… an astonishingly reckless abrogation of contract law that will introduce a new level of uncertainty into business transactions at all levels, and make wealth generation more difficult going forward… An extraordinary uncertainty has been created when the most powerful man in the world can rewrite contracts and choose winners and losers in private negotiations as he sees fit. Since this is an unquantifiable uncertainty, and not a quantifiable risk, its effect on business and investor confidence will be large and unpredictable. As in the 1930s, a time when government also cavalierly rewrote private contracts, the prudent approach for business will be to invest minimally and wait for another administration.”
The job creators, and the people who invest in them and lend money to them, are waiting for a new President – one who won’t rewrite contracts.
In September 2008, the Wall St. Journal published this editorial, which is called “If You Like Michigan’s Economy, You’ll Love Obama’s.”
The prediction that was made in September 2008 in the title of that editorial has come true.
This is how the “recovery” under Obama compares to past recoveries. In the past, the bigger the rise in unemployment, the bigger the job boom that followed. But that is not the case this time:
Here’s another way of looking at the current “recovery” compared to past recoveries. This shows the median length of unemployment:
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