Obama Economy Fix? Regulation

Posted on March 27, 2008

Reagan combined tax cuts with deregulation to create the longest sustained period of economic growth in American history. That said, what is Barack Hussein Obama’s cure for our recent economic downturn? Regulation combined with tax increases. A successful President of the United States took one road and it led to an economic boom but a potential President would choose a path in an opposite direction. What do you think that outcome would be? What is the opposite of an economic boom?

From FoxNews.com:

Obama Rx for Economy: 21st Century Regulations

The government must revive the economy by tightening regulations and reforming its own agencies to adjust to the realities of modern finance, Barack Obama said Thursday.

In a speech billed as a major address, the Democratic presidential candidate said most experts agree the U.S. economy is in a recession.

â€œTo renew our economy â€” and to ensure that we are not doomed to repeat a cycle of bubble and bust again and again â€” we need to address not only the immediate crisis in the housing market; we also need to create a 21st century regulatory framework, and pursue a bold opportunity agenda for the American people,â€ Obama said.

â€œWe do American business â€” and the American people â€” no favors when we turn a blind eye to excessive leverage and dangerous risks,â€ he added. emphasis mine

Obama has gone on record several times as being in favor of allowing the Bush tax cuts to expire in 2010 when they are due to sunset. This is the equivalent of a tax increase. But to a leftist like Barack Hussein Obama, it is “targeted” because in their minds the tax cuts only benefited the “rich”. Tell that to the family whose income has them in the 10% tax bracket - the working poor - who will see a 50% increase in their tax burden with the sunsetting of the Bush tax cuts. It was those cuts which created the 10% bracket. Tell that to the working lower and middle classes when they get slapped with massive layoffs because their employers cannot afford to pay the larger tax burden created when these tax cuts expire. Remember people - it is those who have economic mobility who create jobs for the rest of us. By slapping them with a tax increase the money available to these people to expand business and make investments dries up. This will, and I’m not speculating I know for certain, this WILL create a higher unemployment rate.

One road would lead to prosperity the other to economic ruin. Reagan proved which road is which. Why would anyone vote for someone who advocates a road in the opposite direction?

The current problem is a credit problem. Banks extended loans and credit to people who were incapable of paying their bills. The last thing the government needs to do is involve itself. Mr. Obama’s “solution” will only compound the problem.