Obama Declares War on Investors

Discussion in 'Politics' started by jficquette, Feb 28, 2009.

  1. http://www.cnbc.com/id/29434104

    Article by Kudlow who happens to make sense for once.

    Friday, 27 Feb 2009 | 4:39 PM ET Text Size Posted By: Larry Kudlow


    Let me be very clear on the economics of President Obama’s State of the Union speech and his budget.

    He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.

    That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.

    Raising the marginal tax rate on successful earners, capital, dividends, and all the private funds is a function of Obama’s left-wing social vision, and a repudiation of his economic-recovery statements. Ditto for his sweeping government-planning-and-spending program, which will wind up raising federal outlays as a share of GDP to at least 30 percent, if not more, over the next 10 years.

    This is nearly double the government-spending low-point reached during the late 1990s by the Gingrich Congress and the Clinton administration. While not quite as high as spending levels in Western Europe, we regrettably will be gaining on this statist-planning approach.

    Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

    And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less.

    The tax hikes will generate lower growth and fewer revenues. Yes, the economy will recover. But Obama’s rosy scenario of 4 percent recovery growth in the out years of his budget is not likely to occur. The combination of easy money from the Fed and below-potential economic growth is a prescription for stagflation. That’s one of the messages of the falling stock market.

    Essentially, the Obama economic policies represent a major Democratic party relapse into Great Society social spending and taxing. It is a return to the LBJ/Nixon era, and a move away from the Reagan/Clinton period. House Republicans, fortunately, are 90 days sober, as they are putting up a valiant fight to stop the big-government onslaught and move the GOP back to first principles.

    Noteworthy up here on Wall Street, a great many Obama supporters — especially hedge-fund types who voted for “change” — are becoming disillusioned with the performances of Obama and Treasury man Geithner.

    There is a growing sense of buyer’s remorse.

    Well then, do conservatives dare say: We told you so?
  2. kudblow is the rush limbaugh of the financial world.
  3. LOL, Rush is right 99% of the time.

    I hope all you fools that voted for Obama are going to be happy when he passes the transaction tax.
  4. Or maybe you could address the points he made in the article...
  5. You're correct, but that does not change the fact that he's right on this issue. The truth is the truth, regardless of who speaks it.
  6. Don't know who Rush is, but he is quite right this time.
  7. "House Republicans, fortunately, are 90 days sober, as they are putting up a valiant fight to stop the big-government onslaught and move the GOP back to first principles. "

    republicans have lost any credibility about big spending after the last 8 years. kudlow had full implementation of his ideas the last eight years and look where we are.
    what the democrats are doing could prove to be a mistake also but i am tired of whining republicans. they have put forth no new ideas.
  8. Since you hated Republican spending you should be in a coma over Obama's $1.75 Trillion dollar budget deficit. 5 times anything the Republicans had.
  9. Alan Keyes made the statement something like, ".... NObama must be stopped or he will destroy America..."

    A little comparison... If the Bush Administration was like getting kicked in the balls, the NObama Administration will be like getting DISEMBOWELED!

    So, Larry K., let me be the first to say..

    I TOLD YOU SO!!! :mad:
  10. i dont like it but much of it is to clean up the mess bush and the republicans got us into. sometimes a doctor has to use radical measures to save the drunken driver after he crashed his car into a wall. time will tell.
    #10     Feb 28, 2009