Is the economic dunce in chief about to kill his recovery like FDR did in 1937?
I posted this comment on HuffPo:
Has the worst presidential reelection victory in US history spun Obama's head around and warped his political and economic judgment? After Geithner's meeting with Republicans last week it certainly appears so. It appears that Obama has completely lost his mind and is ideologically obsessed with his class warfare nonsense and ridiculous assertion that fixing the debt and deficit hinges on taxing the rich-the most productive members of our society. After telling the public in 2010 that not extending the Bush tax rates on all Americans (rich, poor and in between) would damage his fragile, pathetic, trickle growth Keynesian recovery how will Obama explain himself if the economy should worsen and possibly crash into a recession upon letting the Bush rates expire? 24/7 Fox News, Rush Limbaugh, the Conservative Media, John Boehner, McConnell and the Republicans will be raising a storm that the mainstream media can't ignore about Obama intentionally crashing the economy as a premeditated plan to pin the blame on Republicans and win back the House for the Dems. If this is what Obama has in mind (and defying his own warning about the disastrous consequences of letting the Bush rates expire he lets that happen) he will not escape blame if the economy tanks-and Republicans will keep the House and possibly capture the Senate. Indeed, this act of economic folly will be seen as one of the greatest miscalculations and blunders in US political history.
Bob Morrow writes:
Your PROOF that the economy will tank is...?
You completely ignore that Obama wants the tax rates for middle and lower income people left in place, and taxes raised for those over $250,000. It's the Republicans who refuse. And you blame their actions on Obama??? Where's your rant against them?
Your universe is truly twisted...as is your post."
What ended the Wilson Depression and sent the economy soaring in the 1920s was Harding/Coolidge slashing taxes, spending and crushing regulations. They took the boot of big government off the neck of the American people put there by Wilson. This created an environment of certainty, optimism and growth for consumers, businesses and banks that brought unemployment down to unheard of levels of under 2%-not seen again until World War II.
Because the economic illiterate in the White House (with his pathetic trickle growth Keynesian recovery) is narrowly and stupidly focused on tax hikes, new stimulus spending and regulations (not cutting taxes, spending, gov't growth and control) to rein in the deficit and debt a pessimistic business community seeing the worst ahead is scared sh*tless that the expiration of the top Bush rates is just the beginning of massive Hoover-FDR-like soak the rich tax hikes. Consequently we're seeing a dangerous recessionary drop in capital investments: businesses aren't hiring, investing and expanding to protect their profits-and venture capital investment is also in decline Obama (who's projecting the image of an anti-business, tax-em-to-death class warfarer) is foolishly doing the opposite of what Harding/Coolidge, Kennedy/Johnson and Ronald Reagan did to restore certainty and confidence about taxes and regulations to the business and finance world. Obama's scaring the job creators and lenders and that's utterly stupid.
If we go over the cliff and the economy tanks at first the Republicans will get the blame until the public is reminded of Obama's warning in 2010, and how he extended all the Bush rates to avoid hurting the economy. Moreover, before anything else the public wants the booming recovery promised by Obama in 2009; the public is always for higher taxes on the rich in good and bad times; but they don't see any connection between tax hikes on anyone and creating the promised boom. Americans want a robustly growing economy and give very little importance to bloody tax hikes.
Websites linking this piece are as follows: