Trickle Up Economics…Voodoo Economics…


President Obama went on the offensive regarding his newly submitted budget.  Obama said that his budget was ‘a threat to the status quo’ because he is taking on the entrenched interests in Washington.  “I know these steps won’t sit well with the special interests and lobbyists who are invested in the old way of doing business and I know they’re gearing up for a fight as we speak,” Mr. Obama said in his weekly address broadcast on radio and posted as a video on the Internet. “My message to them is this: So am I.”

Who the President kidding?

This budget is the biggest gift to lobbyists and special interests in the history of the United States.  There are gifts to the unions, environmental lobby, among others.  And the few cost cutting measures that are in the budget, such as cutting farm subsidies, has been declared dead on arrival by the Democrats. But more than anything, this is a return to Lyndon B. Johnson’s Great SocietyEven Obama supporters, such as William Buckley’s son Christopher, are startled by the size and scale of the plan.  And this doesn’t even include the questionable home foreclosure plan.

At the same time, he wants to restructure the tax code to shift more of the burden from lower- and middle-income workers to the wealthy, effectively a redistribution of wealth intended to reverse the widening income gap of recent years. And he promised to bring the skyrocketing federal deficit, now projected to reach a breathtaking $1.75 trillion this year, back under control by the end of his first term.

Finally, the truth.  Obama is pushing for INCOME REDISTRIBUTION.  This is what conservative pundits kept saying through out the campaign, and the media discounted them as fear mongering.  I myself was attacked for saying that he really wanted income redistribution.  Remember Joe the Plumber?  He was attacked for suggesting the very same thing…and apparently he was right.  Obama is pushing for one of the major tenets of socialism; that income equality improves economic progress.

The only problem is that we have innumerable examples that this is a false assumption.  And our country is one of those examples.

Obama has basically declared that the wealthy, upper middle class, investor class, and business are going to attempt to carry the entire weight of the federal budget.  They now carry 80% of that load.  Almost 50% of this country already pays no income tax, and Obama wants to increase that number.

Take Clive Crook of the Financial Times:

Take this budget at face value, and when Mr Obama talks about “a new era of responsibility” he does not mean: “We are all in this together.” He means: “The rich are responsible for this mess and it is payback time.” Leftist Democrats are thrilled, and rightly so. The budget has three themes: healthcare reform, public investment and unflinching redistribution. This is indeed a new social contract: we get, they pay. Liberals never had it so good.

So when liberals call for common sacrifice, I assume the don’t mean the majority of people.  Liberals instant response?  “Well, you were in charge for 8 years, and see what you did!”  True.  But liberals were in charge of Congress for decades, impelementing the theories behind the Great Society…that were disastrous.  So why should we go back to that broken system?

To compound this mess, Obama’s Administration is bringing back ‘Rosy Scenario’.  Don’t remember what that is?  Back in the eighties, pundits would joke that the most important woman in Washington was Rosy Scenario; because the government would only provide the best outlook to convince the public.  Well, Obama obviously loves Rosy.  Economists are pouring over the details of Obama’s budget, and have found that the numbers simply don’t add up.  For example, they use the assumptions that the GDP will grow by 3.2% in 2010, 4% in 2011, and 4.6% in 2012.  Those numbers are higher than almost any private forecaster.  If any of these numbers are off, even by a little, the budget deficit will grow tremendously.  For example, for 2010, when the administration is forecasting the deficit will decline to $1.17 trillion, the administration is forecasting that the rebounding economy will boost revenues by 8.9 percent.  But say the economy only grows by 2%?  Then the deficit will actually grow larger, not smallerAlso, they are assuming a ‘V’ shaped economic recovery (that we have seen more of in recent decades), though many feel it will be the classic ‘U’ shaped recovery of yesteryear.

The economic theory behind this kind of socialistic bend is beyond terrible; it has been virtually proven false.  While other countries around the world have shed their socialistic tendencies, President Obama has now proposed one of the largest shifts of centralized planning in world history.  And no one is there to stop him.

The American Public voted for this change; just beware what you wish for.  This is the moment that if you believe that this is wrong for America to step up and fight.  Fight with what little voice we have in the political battlefield.  Obama basically challenged us to bring the fight…I say bring it on.

2 thoughts on “Trickle Up Economics…Voodoo Economics…

  • March 2, 2009 at 9:07 am

    HOW do we fight back? We have little voting power until 2010, and a lot of damage will have been done by then….

  • March 2, 2009 at 12:08 pm

    I only have one solution: go after blue dog Democrats. They are supposed to be fiscally moderate; let them prove it. There are atleast 40 members of Congress, and several senators, that were elected in 2006 as moderates. I can’t imagine most of them really believe in the Obama plan. Well, force them to make a choice: Defend the Obama plan and take the risk at home in 2010, or stand up for what they supposedly believe.
    I admit, it is a small chance, but the only one we have.

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