His jobs plan is all about how stupid he thinks you — and the Republicans — are.
President Obama’s so-called Jobs Plan has nothing to do with jobs and economics. On that score, it is already a proven failure. Rather, the plan is pure politics: a ploy to make Republicans bear the responsibility for the President’s economic fiasco, with proven to fail policies he knows the Republicans were elected to stop and can’t support. The political calculation is that the public is too stupid to figure out both the economic fallacies in the plan, and the dishonesties in the political attack, which accuses Republicans of the exact political cynicism in which the President is engaged.
That is a Saul Alinsky strategy: accuse your opponents of doing what you are doing. Recall that the President previously served as a tutor of Saul Alinsky political tactics.
In the present economic crisis, such cynical political manipulation is a disgraceful abdication of the responsibilities of his office. This is why Congress, rather than pass Obama’s phony jobs plan, should be asking him to resign.
Answering the President
In last Saturday’s weekly radio address, the President reiterated the political ploy of his jobs plan. If Republicans insist on opposing his jobs plan, Obama demanded an explanation to the public as to why. Then he taunted, if they don’t support his plan, where is their plan?
This is where the assumption that the public is stupid begins. The obvious fallacies in Obama’s so-called jobs plan have been reiterated over and over, and Republicans have long been advocating far better, more effective job plans.
Obama’s jobs plan is about half the size of his nearly one trillion-dollar 2009 so-called stimulus plan, but otherwise contains the same policies. That 2009 stimulus didn’t stimulate anything except runaway government spending, deficits, and debt. Unemployment has soared since then, and remained stubbornly high, as Obamanomics, including the so-called stimulus, has short-circuited the traditional American recovery. That recovery is now long overdue, as has been explained in this column numerous times.
Part of the jobs plan is devoted to increased government spending on supposed infrastructure. That recalls the laughable “shovel ready” jobs of Obama’s 2009 stimulus. Another part is increased spending to bailout spendthrift Democrat states, which Obama calls hiring more teachers, firemen, and cops (which is a state and local government function).
But economic growth is not based on increased government spending, a fallacy which Wall Street Journal senior economics writer Steve Moore has rightly labeled “tooth fairy” economics. That is because the money for such spending needs to come from somewhere, and so drains the private sector to the extent of such increased government spending, leaving no net effect in any event.
What drives economic growth and prosperity is incentives for increased production, as Reaganomics proved. Obama’s assault on such incentives is why trillions are sitting on corporate and bank balance sheets, and America is suffering a capital strike and capital flight. The Occupy Wall Street protestors in threatening property and profits are just further undermining incentives and contributing to that capital strike and capital flight, which only contributes further to extended and increased unemployment.
The other half of the jobs plan includes temporary payroll tax cuts, which are a continuation and expansion of supposed temporary payroll tax cuts already in place. But such temporary tax reductions do not stimulate economic growth and jobs either, as permanent cuts and incentives are necessary for permanent jobs. That was just proved by the previous temporary tax cut that Obama already put in place, which failed to promote the long overdue recovery.
Moreover, as I have previously explained, continuing and expanding that failed temporary payroll tax cut on Obama’s grounds that expiration of the “temporary” cut would be a tax increase on the middle class is dangerous because long term it would eviscerate the financing for Social Security. This is why Republicans should not support this component of the “jobs plan” either. Notice that the phony AARP is once again in the tank for Obama and the Democrats, not uttering a peep about this growing fundamental assault on Social Security.
But even worse than the 2009 stimulus is that this current half stimulus echo is accompanied by Obama’s proposal for $1.5 trillion in permanent tax increases. That now includes Obama’s support for a 5% millionaires’ surtax. Those permanent increases only further reduce incentives for increased production, and only contribute further to economic downturn and stagnation under any economic theory.
Those tax increases, moreover, would come on top of all the tax increases Obama has already enacted under current law for 2013, of which major media institutions as well as most of the public are unaware. In that year, again, the Obamacare tax increases go into effect, and the Bush tax cuts expire, which Obama has refused to renew for the nation’s job creators, investors, and more significant small businesses. Under those tax increases, the top tax rates for almost every major federal tax will soar, as I explain in a new Encounter Books publication coming out next week, Obama and the Crash of 2013. All except the corporate income tax, which is already virtually the highest in the industrialized world, with no relief in sight under Obama.
That plus another $1.5 trillion tax increase, including a 5 percent millionaires surtax, is just what put the “Great” in the “Great Depression” in the phraseology of Amity Shlaes in her book The Forgotten Man. The Republicans are supposed to support this to create jobs?
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?