Thursday, October 09, 2008

NOW yer Talkin

FINALLY! We now have economists coming out with a common-sense response to what will happen to the US economy if Obama implements his tax hikes and other socialist agenda items. I have an economics degree, and I can tell you that there are as many economic opinions as there are...armpits. However, we do know from the experience of the Kennedy and Reagan years that tax cuts create increased revenue for the US Treasury. We also know that tax hikes cause people to say "f*** it" when they are asked to work overtime: Why work more to take home less? Hell, go home and have a beer instead.

Anyway, 100 economists have signed a letter condemning the Obama economic plan (plan? That's generous -- it's really a cluster you-know-what). Here's a sample:
Barack Obama argues that his proposals to raise tax rates and halt international trade agreements would benefit the American economy. They would do nothing of the sort. Economic analysis and historical experience show that they would do the opposite. They would reduce economic growth and decrease the number of jobs in America. Moreover, with the credit crunch, the housing slump, and high energy prices weakening the U.S. economy, his proposals run a high risk of throwing the economy into a deep recession. It was exactly such misguided tax hikes and protectionism, enacted when the U.S. economy was weak in the early 1930s, that greatly increased the severity of the Great Depression. (Emphasis mine.)
Read the rest here.

H/T The Corner and

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