« Obama Strikes Back at Budget Critics | Main | Paul Harvey, Good Day and Goodbye »
March 01, 2009
Obama Declares War on Investors, Entrepreneurs, Businesses, And More
Obama Declares War on Investors, Entrepreneurs, Businesses, And More
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?
Wild Thing's comment.......
Excellent artikcle.
Obama's war on capitalism is really a war against all Americans everywhere. The sad and scary part are that he is not dumb and neither are the people around him, this is intentional and designed and we shouldn't ignore it. Very scary stuff.
Hmmmm interesting, good article, I wonder if this means something too.....CNBC doesn’t like it, maybe something’s up. ( or wishful thinking for an Obama revolt)
Obama has 90 to 120 days to start to show some results on the economy....after that dissatisfaction with his Presidency will grow exponentially. I could be wrong but I think it will build faster than a tsunami.
....Thank you Mark for sending this to me.
Mark
3rd Mar.Div. 1st Battalion 9th Marine Regiment
1/9 Marines aka The Walking Dead
VN 66-67
Posted by Wild Thing at March 1, 2009 04:48 AM
Comments
Despite what Obamanation is doing, we are going ahead with our dream of owning our own business. We have put the wheels in motion and are studying up on the ins and outs of a home and internet based business. We have this chance to actually do something we both enjoy and want to leave to our children. We will make this a success. We have nowhere to go but up and out of the hole. I'll certainly keep you posted when we start the business for the rest of our lives.
Posted by: Lynn at March 1, 2009 07:50 AM
Wasn't it cNBC who pulled all the stops to get Obama elected? Isn't it their people who get tingles running up their legs when they hear him speak? Maybe these fools realized that he's coming after their $$$$$$ too?
Posted by: BobF at March 1, 2009 08:56 AM
Lynn - we too have just started our own business (our second). May good fortune smile on yours!!
We have faith in America. What Obama and his like don't understand is that when the going gets tough, that's when the true spirit of America shows up.
It will get even more interesting in the days ahead and I don't believe that things will turn out completely as some Os would wish. Keep your eye on 2010 and the ones who wish to be elected. if they voted for any one of these damn economical thefts, they should not get one vote!
Posted by: yankeemom at March 1, 2009 10:09 AM
Lynn, oh wow yessss keep us updated. Prayers and tons of wishes it all happens and does well. Very exciting.
Posted by: Wild Thing at March 1, 2009 01:01 PM
BobF., good points, yes CNBC, MSNBC both especially MSNBC was huge on Obama's side.
Posted by: Wild Thing at March 1, 2009 01:05 PM
Yankeemom, that is great, I wish you well and prayers too it does well.
This is so true!!!!
"What Obama and his like don't understand is that when the going gets tough, that's when the true spirit of America shows up."
Posted by: Wild Thing at March 1, 2009 01:06 PM
Squeeze that employer. Grandson #1 was working at a Shari's restaurant, starting out, a dishwasher, bus boy, server and was learning in the kitchen under the chef. In December right after Christmas he was laid off as were several other minimum wage workers. It's a down time for the food service industry too. The reason for the lay off, Washington's 2009 minimum wage is $8.55 per hour. Up 150% in ten years.
January 1, 2009 $8.55
January 1, 2008 $8.07
January 1, 2007 $7.93
January 1, 2006 $7.63
January 1, 2005 $7.35
January 1, 2004 $7.16
January 1, 2003 $7.01
January 1, 2002 $6.90
January 1, 2001 $6.72
January 1, 2000 $6.50
January 1, 1999 $5.70
Now I've been there more than once but it was an opportunity to learn, to progress and to establish a work ethic, that is being removed and soon so will that small business employer. Most employers that have good help but cannot afford to pay more will not hinder that employees chances on expanding, it's good business.
Best of luck and wishes on the new adventures Lynn and Yankeemom.
Posted by: Jack at March 1, 2009 02:24 PM
Jack, that's happened to small businesses all over America. They've either laid off employees or cut back on hours.
Where I work they cut back on hours of our part timers who are paid minimum wage. These part timers were college students who would would also get credit for working at my place since it was course related. But, they had to do 20 hours per week to get the credit and now they're not getting that many hours. Thanks to big brother, they're working less hours, making less money weekly, and not getting the course credit.
Posted by: BobF at March 1, 2009 04:37 PM
Obama = Reparation$! The lower classes are now being elevated - at taxpayers expense / and by screwing the rich - to the MIDDLE CLASS and soon, a la Marx Communist Manifesto, there will be two classes: wealthy and middle class.... Then ONE class in the end. Universal freebies, homes for all and free college, etc will result in the new USSR: United Socialist States Republic!
Posted by: darthcrUSAderworldtour07 at March 1, 2009 05:44 PM
"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."
What did they expect. This was the BS that was passed around about obama governing from the Center ???????
Geithner is a tax cheat, and hell we still don't know anything about obama except he is a communist but we new that from the beginning.
So the Hedge funders are becoming disillusioned, well it's about F***ing time. These are suppose to be the best and the brightest, yet they chose obama.
Rush was right again yesterday, we ran the wrong candidate. We let the Rockefellor Republicans pick our candidate. Screw that. We got to get a conservative party we some Cahones.
Posted by: Mark at March 1, 2009 07:22 PM
Jack, your right and then Obama said in one of his stupid speechs how peoople should not go to Vegas and other places like that, hotels etc. I read how the hotel industry is furious with Obama for saying that. I don't blame them, he had no right to and it has hurt their business, making companies feel guilty to do company trips to places.
Posted by: Wild Thing at March 1, 2009 11:40 PM
BobF., I have top wonder too howo much of it is the fear Obama keeps putting in peoples minds. He is a fear monger and a crisis maker to the max. Like you said too add in to that the taxes, companies are getting ready for big taxes coming and laying people off.
Posted by: Wild Thing at March 1, 2009 11:44 PM
Darth, yes that is his goal and he could care less that he is destroying our country. I can't stand him.
Posted by: Wild Thing at March 1, 2009 11:47 PM
Mark, I agree.
Nicholas said somethign months ago, that McCain was a set up. They knew having a rino he would not win, that we would all revolt about it, like how Duncan Hunter had no backing at all from the GOP/RNC. Only McCain and when McCain picked Palin it shocked the GOP how fast and enormous her following grew. He said that he thinks that is why her own campagin person with the McCain team sabotoged her with the clothes stuff and the Curic interview. That woman is ended up voting for Obama and is a total liberal.
It was all to get Obama to win. Anyway that is what Nicholas thinks and I think he has a lot of points that make sense. Scary stuff.
Posted by: Wild Thing at March 1, 2009 11:52 PM
