Sunday, July 25, 2010
Obama, The Nation Killer
By Alan Caruba
The unemployment rate keeps climbing and the polling results for the President and Congress keep falling. Conservatives are well aware that the Obama administration has relentlessly pursued legislation harmful to the economy, but just how bad it is and how bad it will become in 2011 may not have sunk in fully for the public in general.
Nothing among Obama’s legislative agenda and executive orders has done anything other than push the nation more and more toward bankruptcy. Perhaps the oddest aspect has been the action of the Federal Reserve which is, in theory, an independent entity. Suffice to say, it is pursuing policies that reflect the same disastrous actions that prolonged the 1930s Great Depression. Not surprisingly, Fed Chairman Ben Bernanke has pronounced the outlook “unusually uncertain.”
The worst is yet to come because the end of the Bush tax cuts on December 31, 2010 will generate major increases in taxation that will affect all but the appalling 40% who pay no taxes at all. This isn’t redistribution of wealth. It is a penalty levied on investors, entrepreneurs, and those who still have jobs.
One of those policies, the president’s shut-down of drilling in the Gulf, twice rejected by the courts, will add thousands more to the ranks of the unemployed without any justification.
When the tax cut deadline comes at midnight on December 31, the “death tax” on estates will return, increasing 55% on estates of $1 million or more, but it won’t just be “the rich” who are affected. As reported in Investor’s Business Daily, “The lowest bracket for the personal income tax, for instance, moves up 50%, to 15% from 10%.” These brackets will increase 25% to 39.6% for others.
The marriage penalty returns and the capital gains tax “will jump 33%” and “the tax on dividends will go all the way from 15% to 39.6%--a 164% increase.” Wall Street will hit a wall of resistance from investors.
A spending-crazed Congress will have $115 billion more to waste and, according to the Congressional Budget Office, it will reach $2.6 trillion by 2020, a mere decade from now. These funds are theoretically going to be allocated toward paying for the vastly expanded Obamacare “reform” of the already insolvent Medicare program.
A booklet by Michael D. Tanner, “Bad Medicine”, published by the libertarian Cato Institute, points how the fallacy—the lie—that an expanded Medicare will protect those now without such protection against rising healthcare costs. The truth is that by 2019 an estimated 21 million Americans will still be uninsured.
Obamacare will cost far more than advertised; more than $2.7 trillion over ten years of full implementation and will add $352 billion to the national debt over that period. Insurance costs will skyrocket for younger, healthier workers.
Furthermore, Obamacare “will increase taxes by more than $669 billion between now and 2019, and the burdens it places on business will significantly reduce economic growth and employment.”
A July 23 Rasmussen poll revealed that 75% of likely voters say free markets are better than government management of the economy. “Americans overwhelmingly believe that more competition and less regulation are better for the economy than more regulation and less competition.”
Wayne Crews, the vice president for policy at the Competitive Enterprise Institute, describes what is necessary for economic recovery, citing “massive spending cuts, deregulation, privatization, tax-cutting, avoiding of monetary inflation, and elimination of government-granted monopolies and favors.”
The Obama administration and Democrat-controlled Congress will not engage in any of these well known remedies. What is occurring is a deliberate policy to destroy the nation’s economy and with it the nation. The trade deficits the nation has run, importing more than we export, will ensure we do not dig ourselves out of the hole for years to come.
Writing recently in the Globe and Mail, a London newspaper, Neil Reynolds warned that “Democracies produced Nazi Germany and Fascist Italy, fulfilling the expectation of Socrates and Machiavelli that democracies end in tyranny. Now democracies are fulfilling the complementary expectation of Nobel laureate economist Milton Friedman that democracies end in bankruptcy.”
All hail, Obama! The Nation Killer!
© Alan Caruba, 2010