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"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." – Winston Churchill (1903)
http://www.cnbc.com/id/29434104
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?
"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." – Winston Churchill (1903)
Obama declared war on us!
Kudlow's such a dipwad. I love that guy.
Missed:
Rukeyser was the man. Horrible sense of humor, but that was part of his charm.Kudlow's such a dipwad. I love that guy.
Missed:
corps, esp finanical corps, have been beating down America for decades.
Wonderful to hear the assholes sqeal like buggered pigs when somebody dares to push back.
Last edited by boutons_; 02-28-2009 at 12:19 AM.
Obama were screwed.
Expect to hear more of this.
That Kudlow guy looks exactly how I imagined him to look: White and old.
Last edited by Winehole23; 02-28-2009 at 08:13 PM.
Pretty much.
I would have more respect for Kudlow if he were for better corporate governance and greater investor oversight of companies.
Kudlow is a fairly smart guy, but is a good example of an ideologue whose time as passed.
The whole "OMG THEYZ GONNA REGULATE US OUTTA BIZNISS" schtick gets old after a while.
"Trust in the markets" is all well and good if humans weren't given to "bubble" type behavior.
Free markets quite obviously need referees, just like basketball games.
He may continue to enjoy his turn as the Ghost of Christmas Past on cable TV. I wish him well, but his bit is so 30 years ago.
Yep. Who else is big enough to kick capitalism in the nuts when it needs the kick in the nuts?"Trust in the markets" is all well and good if humans weren't given to "bubble" type behavior.
Free markets quite obviously need referees, just like basketball games.
We had them.
Too bad Barney Franks was ing a bank exec at the time instead of doing his damn job as chair of the House Financial Services Committee, and Chris Cox was too busy hanging out with his hedge funds buddies to do about naked short selling.
Good thing we're keeping them on the job now in the Obama Administration!
We've never had free markets or (honest) referees.
cool tie
[quote=Aggie Hoopsfan;3154781]
That's ah, kinda dirty. Why are you focused on that AHF?Too bad Barney Franks was ing a bank exec at the time instead of doing his damn job as chair of the House Financial Services Committee, and Chris Cox was too busy hanging out with his hedge funds buddies to do about naked short selling.
Also, you say naked short like it's a bad thing. Is it?
We should thank the naked shorts for identifying the bad bets, weak and poorly run companies. We weren't going to let investors continue to accelerate the damage to our massively insolvent finance sector by going short on leverage, but in normal times they performed a valuable service. Hopefully, they will again.
Last edited by Winehole23; 03-01-2009 at 11:45 PM.
That's because TRUE 'free markets' are unstable.
Stereotype much?
then why didnt the previous govt tried to fix NFD?
pointing fingers and smear campaigns is what oppositions love.....
Pfft. Everyone stereotypes. Show me the person that says they don't and I"ll show you a liar.
The important thing is whether you use stereotypes to reinforce untruthful beliefs.
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