Obama says that it is counterproductive to raise taxes during a recession because it would result in smaller paychecks and fewer jobs. Nonetheless, he advocates for higher taxes with “fair share” boilerplate or “revenue increases” that require raising taxes. This is the same failed experiment. The left denounced the Bowles-Simpson deficit committee’s recommendations as draconian bloodletting. Therefore, we have appointed another, even more partisan, committee to study the matter and make recommendations that will be rejected.
Why we need committees to tell us the obvious is a mystery. By now, sentient beings should recognize that recklessly spending borrowed money while hoping to pay for it with tax increases later has not solved our economic problems. Rather, this misguided Keynesian scheme has greatly contributed to our woes. We will spend over $250 billion paying interest on the national debt this year. With a quarter trillion dollars here and a quarter trillion there, before long, we are into some real money.
The Democratic Senate and House members who will serve on the deficit reduction super committee are one-trick-ponies. House members Jim Clyburn, Chris Van Hollen and Xavier Becerra are on the 12-member panel. These progressives are unconcerned about long-term US economic viability. Becerra belongs to the Democratic Socialists of America organization.
The Senate group is similar. They are Max Baucus of WelfareHealthCare infamy, John Kerry, an O-buma clone, and Patty Murray, a cultural Marxist and progressive. They are expected to find ways to decrease government spending. This is the equivalent of hiring pedophiles to work in daycare centers. Their modus operandi is to use government hooligans to steal for them so they can purchase votes from permanent welfare constituencies.
Rather than enabling moochers, we need to get government off businesses' backs and let the private sector create jobs. We desperately need them, but O-buma wants to borrow more money for pie-in-the-sky swindles. He refers to his so-called jobs plan as an infrastructure bank, but it would actually be a shush fund operated by his appointees to benefit union interests and corporate welfare recipients.
Unveiled at the radical leftist Center for American Progress in January…it would leverage $10 billion in unidentified public funds into $640 billion in government loans and loan guarantees for union-exclusive construction and bogus green jobs projects. This will replicate past presidential failures.
Walter Williams observes that O-buma’s regime is more like FDR’s than Jimmy Carter’s. Under Roosevelt, federal debt skyrocketed by 73 percent. Income taxes rose to 90%. Just when the economy began to recover—factory employment and payrolls had increased by 23 and 35 percent, respectively—he convinced Congress to pass the National Recovery Act. Sound familiar?
The NRA shortened work hours, raised wages arbitrarily, and imposed other new costs on businesses. In the six months after the law took effect, industrial production dropped 25 percent. Along with the NRA, came the National Labor Relations Act, a payoff to labor unions [that] went on a militant organizing frenzy [including] threats, boycotts, strikes, seizures of plants…violence and other acts that pushed productivity down sharply and unemployment up dramatically.
The stock market crashed, losing almost half its value. Unemployment was 20%. FDR’s treasury secretary wrote that tax and spend policies were not working, and they fail today. Unemployment remained stubbornly high, then as now. All that debt went for naught, as has ours. Roosevelt’s socialist schemes turned a three- or four-year sharp downturn into a 16-year affair. This repeating failed experiments is not insanity; it is all part of the progressive plan.
May your gods be with you.