The stock market continues its slide through the 6000s to the 5000s. Unemployment is soaring. Consumer confidence is plummeting. Housing prices are decreasing and foreclosures are increasing. And…the Democrats and Obama are blaming Bush. Nice try but that will not work for much longer.
In October of 2006, the stock market was in the 14,000s! Consumer confidence was above 70%. Gas and energy prices were stable and average. Interest rates were low. Housing sales were high. Housing values were soaring. Foreclosures were below 5%. Unemployment was below 6%. Durable goods sales were increasing. Car sales were good. The list goes on and on of all the positive aspects of the Bush and Republican economy. So, what happened?
In November 2006, the Democrats took over Congress. Soon after that, they raised the minimum wage, which always creates an increase in unemployment. They said they would not make the Bush tax cuts permanent. This sent a message to most Americans who pay taxes that they will be getting a tax increase in 2010, which created an uncertainty in the economy. Then, the gas prices started to soar which put pressure on the entire economy. The Democrats would not lessen the restrictions on oil drilling, which would have decreased the price of oil, and the prices soared to record highs. This hurt the economy at all levels.
Then, Republicans, Bush, and Greenspan warned the Democrats about the instability in the housing market and Freddie Mac and Fannie Mae. They started the warning in 2007 and 2008. The Democrats, Barney Frank, and Christopher Dodd all said that the institutions were fine and pushed them to take on more home loans. This, of course, caused them to collapse in 2008, when homeowners could not afford their homes after the their adjusted rate mortgages started to go up. Foreclosures soared. As Freddie Mac and Fannie Mae collapsed, it caused a domino affect of bank failures in banking systems across the world. This was the catalyst to the economic problems we are in today. Notice no Republican caused it. They warned to stop it.
Then, when Obama took the lead in the primary the stock market began to decline. Then, the housing market crashed. The stock market continued to decline. Obama won the primary and the stock market slid further. As Obama’s poll numbers increased, the stock market did the opposite. As Obama made speeches and laid out his policies, the economy sunk further directly reacting to his economic plans. Business people did not want high taxes, more regulations, and his other plans.
The Democratic Congress passed TARP and the bailouts began. Then, Obama won the election and the markets continued their slide.
Since the inauguration, Obama has passed a Stimulus Bill, a home foreclosure plan, and submitted a budget full of tax increases and excessive spending. What has happened? The stock market has lost at least $2 trillion dollars and 30% of it value. And, since the Democrats took power in 2006, the stock market has lost over 70% of its value.
This entire decline in the economy is a direct response to the Democrat’s policies. Since becoming President, Obama has talked down the economy. He has declared there is crisis, a catastrophe. His new budget with its tax increases is an out right declaration of war on the wealth of this nation, on small businesses, and investors. The market responded with further declines.
At this point, it is intellectually dishonest and borderline insane to say that the Democrats do not have culpability in the recession. Bush has his hands dirty too. Yes, he started the bailouts, but Obama is continuing them. Obama is raising taxes steeply in a recession, which is what Hoover and FDR did. This was one of the direct causes of the “Great Depression.” Hoover and FDR did not know what would happen. Obama doesn’t have that excuse. He has history to show him what to do and he is doing the exact opposite.
So, the economy slips further and further toward a depression. Obama owns this economy now. It is evident when he speaks or institutes a policy the stock market declines and companies layoff workers. If his speeches and policies were what investors and business people wanted to hear and worked, the market would be going up, not down.
So, blaming Bush does not work anymore. Obama’s policies are taking hold on the economy and affecting it at all levels. The stock market is plummeting, unemployment is soaring, foreclosures have soared, and consumer confidence is declining. Bush did not ask for higher taxes or make speeches saying the economy is in crisis. Obama did.
You broke it, Obama. You own it. Not Bush.
Showing posts with label Recession. Show all posts
Showing posts with label Recession. Show all posts
Tuesday, March 3, 2009
Sunday, February 22, 2009
Obama’ New Budget is Economic Suicide
According to the Washington Post, Obama will release his budget this week. He claims his budget will cut the deficit in half by in the next four years! Wow, that is quite ambitious, and completely unrealistic! His budget will do the exact opposite. He is preaching fiscal responsibility and limiting or cutting governmental spending. BUT…this is the same President that pushed for and signed the “Spendulous” Bill. Where is the intellectual honesty? This is just plain hypocrisy.
With this budget, he is breaking more campaign promise. He said he would cut taxes of 95% of Americans. Well…he is NOT. He raising them by default by allowing the Bush tax cuts to expire. He never set in stone what he would raise the capital gains tax. Well, he has now—he is raising it from 15% to 20%.
The results from raising government spending, debt, and raising taxes has been tried before. It did not work for Clinton, FDR and others. It eventually rapes the American economy of its much needed capital. The net result will be that economy will lose its greatest resource, the cash capital of all Americans—not just the rich, but all of us. This results in an eventual slowdown and a deeper recession or even depression.
This is exemplified during the Clinton years. The G.H. Bush tax increase slowed the economy by the end of Bush’s tenure and in the beginning of Clinton’s. A recession that helped Clinton get elected. Then, the recession G.W. Bush dealt with was the result from Clinton’s tax increases. Sometimes tax policy has an immediate effect while other times it takes a few quarters to affect the economy. The immediate improvement could be seen by Bush’s tax cut but it took longer for Reagan’s to take hold. However, the result from tax increases is ALWAYS a slow economy. And, that is exactly what Obama is going to get here.
However, he already has an economy in a recession. By raising taxes in a recession, he is just going to worsen the economy, and by taking more income and capital from it, he could possibly push the entire country into a depression.
By trying to cut the deficits created by the tax and spending Liberals and the fiscal irresponsible Republicans by raising taxes, he is going to lower the tax revenues even further. This is simple economic suicide. As the economy slows further from the tax increases, the government tax revenues will decrease. Without the tax revenue, the deficits will soar. This generates countless perils in our economy by affecting the value of our dollar to too many other issues to name here. Putting it simply, his entire economic policy with the “Spendulous” Bill and his budget will do exactly the opposite of its intent. It will increase deficits and slow the economy even further.
By the time Obama is done, he would tax and spend America into economic oblivion with tax rates punishing businesses and the wealth creators of our economy, and the government wasting whatever resources we would have on programs that have never worked.
With this budget, he is breaking more campaign promise. He said he would cut taxes of 95% of Americans. Well…he is NOT. He raising them by default by allowing the Bush tax cuts to expire. He never set in stone what he would raise the capital gains tax. Well, he has now—he is raising it from 15% to 20%.
The results from raising government spending, debt, and raising taxes has been tried before. It did not work for Clinton, FDR and others. It eventually rapes the American economy of its much needed capital. The net result will be that economy will lose its greatest resource, the cash capital of all Americans—not just the rich, but all of us. This results in an eventual slowdown and a deeper recession or even depression.
This is exemplified during the Clinton years. The G.H. Bush tax increase slowed the economy by the end of Bush’s tenure and in the beginning of Clinton’s. A recession that helped Clinton get elected. Then, the recession G.W. Bush dealt with was the result from Clinton’s tax increases. Sometimes tax policy has an immediate effect while other times it takes a few quarters to affect the economy. The immediate improvement could be seen by Bush’s tax cut but it took longer for Reagan’s to take hold. However, the result from tax increases is ALWAYS a slow economy. And, that is exactly what Obama is going to get here.
However, he already has an economy in a recession. By raising taxes in a recession, he is just going to worsen the economy, and by taking more income and capital from it, he could possibly push the entire country into a depression.
By trying to cut the deficits created by the tax and spending Liberals and the fiscal irresponsible Republicans by raising taxes, he is going to lower the tax revenues even further. This is simple economic suicide. As the economy slows further from the tax increases, the government tax revenues will decrease. Without the tax revenue, the deficits will soar. This generates countless perils in our economy by affecting the value of our dollar to too many other issues to name here. Putting it simply, his entire economic policy with the “Spendulous” Bill and his budget will do exactly the opposite of its intent. It will increase deficits and slow the economy even further.
By the time Obama is done, he would tax and spend America into economic oblivion with tax rates punishing businesses and the wealth creators of our economy, and the government wasting whatever resources we would have on programs that have never worked.
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