Friday, February 27, 2009

Obama Declares War

Obama gets thrashed in an article by Larry Kudrow on CNBC.Com. In discussing the State of the Union address during the week, Kudrow writes:

He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.

That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our
economy’s long-run potential to grow.

Is Kudrow taking it a bit too far by calling this a declaration of war? Maybe. Will Obama's plans to spend our way out of the recession work? At some point, the government can spend enough to revive the economy. But at what cost?
Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

There is a lot to fear about the current spending plans by the administration, including the threat (promise?) of tax increases, and the specter of inflation in the near future, not to mention what are we going to do should this spending program not work.

Questioning Politics

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