The situation is worse than even harsh critics expected.
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And that’s why I’ve been fighting, in addition to everything else we have done, for additional steps to speed up this recovery and keep the economy growing. We want an extension of unemployment benefits for workers who lost their job through no fault of their own. We want to help small business owners get the loans they need to keep their doors open and hire more workers. We want relief for struggling states so they don’t have to lay off thousands of teachers and firefighters and police officers.
The only thing standing in the way of all this government spending salvation is those mean, nasty Republicans. Obama explains:
[L]ately we’ve been having to wrangle around what used to be pretty noncontroversial things — providing loans for small businesses, extending unemployment insurance when 8 million people lost their jobs during the recession. But lately there’s a minority of Senators from the other party who’ve had a different idea. As we speak, they are using their power to stop this relief from going to the American people. And they won’t even let these measures come up for a vote. They block it through all kinds of procedural maneuvering in the Senate.
On February 13, 2010, in celebrating the signing of a Pay-As-You-Go budget rule into law, the President was saying something quite different:
But what also made these large deficits possible was the end of a common sense rule called “pay-as-you-go.” It’s pretty simple. It says to Congress, you have to pay as you go. You can’t spend a dollar unless you cut a dollar elsewhere. This is how a responsible family or business manages a budget. And it is how a responsible government manages a budget, as well…. Last night, I signed the “pay-as-you-go” rule into law. Now, Congress will have to pay for what it spends, just like everybody else.
But this “PayGo” charade was all about playing the voters for fools. Whenever the Democrats bring up more spending they want, they include a provision to exempt it from this PayGo rule. When the Republicans insist on enforcing the PayGo rules, President Obama and Congressional Democrats lambaste them for opposing essential spending “relief,” as Obama did in Racine. Democrat party controlled media outlets then dutifully echo these charges with disapproval for those nasty Republicans.
President Obama also made clear in Racine that the thinks that cutting tax rates causes recessions and economic crisis. He said about the Republicans:
They think we should keep doing what we did for most of the last decade leading up to the recession. So their prescription for every challenge is pretty much the same… basically cut taxes for the wealthy…. nearly a decade of tax breaks for millionaires and billionaires…. We’ve already tried these ideas. Remember we tried them for eight years. We tried them for a good part of the last decade. We know where they led us.
This explains the so predictable failure of Obamanomics. The President thinks federal spending is what causes economic recovery and growth. It was cutting tax rates that caused the recession and the financial crisis. This is what President Obama is saying in these and other passages of his Racine speech. If you try to explain to him that cutting tax rates creates essential, highly effective incentives for producing more by allowing producers to keep more of what they produce, his inner, neo-Marxist replies:
So I just want everybody to remember, we’ve tried the other sides’ theories. We know what their ideas are. We know where they led us. So now we’ve got a choice. We can return to what we know did not work, or we can build a stronger future. We can go backwards, or we can go forward. And I don’t know about you, but I want to move this country forward.”
Professor Meltzer, grounded in reality, said something quite different in the Wall Street Journal that same day, “The Obama economic team ignored past history. The two most successful fiscal stimulus programs since World War II — under Kennedy-Johnson and Reagan — took the form of permanent reductions in corporate and marginal tax rates.”
But President Obama is not interested in history since World War II. The future he is taking us to is the 1930s, enacting the same economic policies of that era, which will only produce the same results. To see our Obama future, look to Greece. For if we fall into a double dip recession, what will that do to his $1.6 trillion deficit?
A Democrat Problem
But the problem isn’t only President Obama. The problem is endemic to the entire Democrat arty, which is today, heart and soul, a neo-Marxist party. Witness Hillary Clinton, another self-styled “progressive,” who in recently speaking at the Brookings Institution in Washington, said, “The rich are not paying their fair share in any nation that is facing the kind of employment issues (as the United States) — whether it’s individual, corporate, or whatever the taxation forms are.” Look at Brazil, she suggested. “Brazil has the highest tax-to-GDP ratio in the Western Hemisphere, and guess what — they’re growing like crazy.”
So let’s take a look at Brazil. The highest income tax rate there is 27.5%, 21% less than our top income tax rate of 35%, soon to shoot up under Obamanomics to nearly 43%, 56% higher than Brazil’s. Brazil’s 27.5% rate is even lower than President Reagan’s 28% top rate. The top corporate tax rate in Brazil is 34%, compared to the combined federal and state corporate tax rate of 39.1% in the U.S., now highest in the industrialized world given that Japan has recently come to its senses (unlike the rapidly declining U.S.).
A man of faith in a godless age is hitting Americans where it hurts.
Mr. and Mrs. American Spectator Reader, let P.J. O’Rourke talk sense to your kids.
In Britain, defending your property can get you life.
The debacle of this president’s administration is both a cause and a symptom of the decline of American values. Unless Congress impeaches him, that decline will go on unchecked. An eminent jurist surveys the damage and assesses the chances for the recovery of our culture.
It won’t take long for conservatives to scratch this presidential wannabe off their 2008 scorecard.
The American Christmas, like the songs that celebrate it, makes room for everybody under the rainbow. Is that why so many people seem to be hostile to it?
Was the President done in by the economy, or by the politics of the economy?