A 1-In-100 Blogger: Obama Lied, Our Economy Died

Friday, February 27, 2009

Obama Lied, Our Economy Died

Are you sitting down? Please do, brace yourself, because the truth can be disturbing. If you're under the age of 30, Barack Obama just stole your future. President Barack Obama lied to every single one of us about his tax agenda, with a straight face too. Don't get me wrong, I did warn you this will happen. Yet we're told this record spending is "necessary," because we’re in an economic crisis!

President Obama, in his pursuit of liberal big-government spending, his every remark and the constant preoccupation of his Cabinet is to heighten the sense of crisis and to escalate the predictions of doom if we do not do as they tell us. Obama warned of “hazards and reverses” the economy will face, stressing grim economic statistics and warning of economic “catastrophe” if the stimulus failed to pass. Indeed, it was President Obama, not the markets themselves, who helped spread this fear. And now, every time he speaks, Obama sends the markets down and stocks crashing.

But wait! What about transparency? President Obama promised the federal government would be more open and transparent, and that all legislation would be available for 5 days of public review. The House voted unanimously to allow a 48-hour public review. However, somehow, the transparency and "public review" was never allowed to happen. Obama lied. Transparency became a meaningless phrase of the past.

With Obama’s first $1 trillion pork barrel spending project, what sort of special interest giveaways and wasteful government spending are included in the so-called “Stimulus Package?” To name just a few:
$4.19 billion in slush funds for ACORN, the left-wing advocacy group best known for allegations of voter fraud during the 2008 presidential campaign

$600 million to buy brand new cars for government bureaucrats

$335 million for adult sex workshops (one of the few line items which could conceivably deliver "stimulus")

$150 million for honeybee insurance

$2.8 billion for the US Department of Agriculture in a misdirected program more likely be spent to build unnecessary broadband internet services in urban areas than in the rural areas that lack service.

I just threw up, a moment please… I promise, it gets better – err, more appropriately, it gets much worse.

Obama promised $300 billion to $400 billion in infrastructure spending; but instead, congressional Democratic leaders Nancy Pelosi and Harry Reid fill the bill with pork barrel spending - we got just $30 billion. The jobs that were supposed to be created and the business that was supposed to be “stimulated” likely won't happen. At least, according to Obama, there's no guarantee the $1 trillion gamble with our money will create any jobs at all. The infrastructure spending is far less than promised, there’s no solution for the housing crisis, no plan to save the banks, and the market knows it. Other economists agree, too.

Jim Cramer, who graduated from Harvard College in 1977, where he was president of The Harvard Crimson, then worked as a journalist for four years before earning a law degree from Harvard Law School in 1984, he expressed strong dissatisfaction with the spending bill. “There’s really nothing here,” Cramer said of Obama’s plan. “It doesn’t put anyone to work. And it doesn’t build any bridges. And it doesn’t fix the bank situation.”

The irresponsible spending doesn’t end there, Pelosi’s next wave of pork got approved by Obama as well; President Obama's $3.6 trillion budget plan will boost federal spending across the board - and all of us will pay for it with tax hikes of $1 trillion on individuals and businesses over the next decade. Barack Obama's budget will cost each taxpayer $25,573.48, and it will take 10 years for taxpayers to fund Obama's tax hikes proposed for FY 2010.

Barack Obama's agenda includes a Capital-gains tax increase from 15% to 20%, an agenda that begins 2011, and a scar on our nation that will last until 2021. I’m willing to bet it doesn’t end there either, since Obama continues to prove he doesn’t believe in the work of Arthur Laffer, a young economist, who drew a curve on a napkin in a Washington bar. The Laffer curve suggests that, as taxes increase from low levels, tax revenue collected by the government also increases for a short period of time, but at some point further increases in tax rates would cause revenue to fall (for instance by discouraging people from working), thereby reducing tax revenue. Eventually, if tax rates reached 100% (the far right of the curve), then all people would choose not to work because everything they earned would go to the government.

Some economists said that most governments could raise more revenue by cutting tax rates, an argument proven in the 1980s by the tax-cutting government of Ronald Reagan. Under Reagan, marginal tax rates were cut from a top of 70% to 28%. Revenues (from all taxes) to the U.S. Treasury nearly doubled. According to the Budget of the U.S. Government, Office of Management and Budget, revenues increased from roughly $500 billion in 1980 to $1.1 trillion in 1990. Not surprisingly, Obama laughs at the Laffer curve; in fact, the name “Obama” and “Laffer” should never be used in the same context, since the two ideologies are quite opposite from each other. This leads us to where we are now, a new era that looks to erase all positive legislation since the Reagan-era.

House GOP leader John Boehner of Ohio said, "The era of big government is back, and Democrats are asking you to pay for it. [Obama will] continue to pile debt on the backs of our kids and grandkids." Since Big Government is back - so are big taxes. America, we just got scammed! With Obama’s lies combined with Pelosi’s reckless approach to Governance and spending, our hope for opportunity and an improved economy died. Barack Obama, a Democrat, promised to get the red ink under control even as he planned new spending priorities that eerily resemble the ideals of socialism. He wants to reward bad behavior with income redistribution, taking from the hard working Americans and giving it to the needy.

There’s a saying, “Give a man a fish and you feed him for a day…” or in other words, create reliance on Big Government to feed you; or, “Teach a man to fish and you feed him for a lifetime,” with which, unfortunately, Obama doesn't believe in. In the words of Rush Limbaugh, “We cannot have this large a government role in the private sector with so many people thinking that just because they're Americans they're entitled to things, that this guy is going to be passing them out, and keep this country great and innovative, full of entrepreneurs.” Here’s the full Video Clip:

With oncoming increases in taxes across the board, the government will lose the tax revenue it would have made had it allowed small businesses to afford employee’s to remain in the labor force; thus, more people paying taxes at a lower rate. Money invested in businesses will shrink since working citizens won’t be putting nearly as much of their income into a 401k or other investment vehicles; moreover, consumption will decrease and hurt local economy’s that depends on it.

So where does all of this leave us? What can we expect, or at the very least, hope to expect? Will Obama’s stimulus package spark a much-needed rebound in the second half of 2009? Cramer said during his special State of Cramerica show, President Obama needs to fix the financials before we see a full recovery. It doesn’t matter how well the rest of the market’s holding up. Everything depends on the banks.

If you missed it, here’s Cramer’s ‘State of the Market’ Address:

In short, Cramer created an Obama Accountability Index, consisting of Bank of America, Citigroup, Caterpillar, General Electric, General Motor, and JPMorgan chase, to track the new president’s progress. To bet with Obama, you buy these stocks. To bet against him, you short them. This index will grade Obama’s success as president. If he fails, Cramer said, so does the stock market.

In conclusion, history shows we’re in for a rough two years. Since 1992, a pattern has emerged between Democrat control of the Congress and the White House, and the Dow-Jones Industrial Average. This revealing graph makes the pattern obvious:

Democrat control = Bear Market and Recession.
Republican control = Bull Market and Prosperity.

The last two years of Democrat control and now Obama fit the pattern…

You do the math.


Bluegrass Pundit said...

Taxing the rich at 100% won't pay for Obama's budget. The Wall Street Journal has reported that taxing the rich at 100% won't pay for Obama's budget. Barack Obama promised not to raise taxes on anyone making under $250,000 per year. Where is he going to get the money? The numbers indicate Obama will need to take 100% of the income of everyone making over $75,000.

. said...

Obama is also using fuzzy math in his estimates. His assumptions for rate of growth are way, way off. We're going to have a government with gold plated toilets in the social services buildings with a country of beggars lined up waiting to use it and flush our future.

Yobama said...

So what happens when we run out of 'rich' people to tax so the 'poor' people can have happiness (sic) as the Bill of Rights guarantees???

This is the big gaping hole in a socialist econcomy. You eventually run out of rich people. 80% of New York taxes come from about 40,000 citizens out of the 18 MILLION or so people that live there. If 5,000 of those 'fat cats' moved somewhere else because of this, the place would have a very serious problem.

We are in a very scary time.

Anonymous said...

First off, the economy was tanking before President Obama took office.
It's also not the first time we've had problems...we went through a less severe version of this earlier in Bush's administration. Yet, I don't see you picking on Bush at all.

Second, where do you get your information? You tossed a lot of numbers out there, but did not say where you got them.

I respect your right to express your disagreement with the current Presidency. Please don't view my comment as an attack. I just feel that we should give the new plans and presidency a chance before declaring them a success or failure.

Anonymous said...

Yes we went through this with Reagan after Carter and now Obama is faced with the cycles of a free market. But idiot don't confuse how we are dealing with the problem. Obama is spending his way from one problem to the next and he is changing the very fabric of the Great American Experiment set up by our founding fathers. His agenda is no different from Stalin or Hitler as far as economics. He is killing the free will of people to strive to make their lives better with the replacement of depending on the government to make your life better. This has NEVER worked in the history of mankind. Wake up you blowhard fool. Patriotism will prevail. Better look out you facist liar. Guess ABC and Obama will be hunting down my anonymous letter. Tyranny has taken over liberty!