A Troublesome Conversation about Obamanomics
I told my friend that based on my growing understanding economic recessions, in the past 100 hundred years, tax cuts have been the surest way to revitalize the economy. I informed him of the economic downturn after Woodrow Wilson and WWI and how Harding (then) Coolidge cut taxes and contributed to the prosperous 20s (until BLACK FRIDAY). We all know that time period as the Great Depression. I explained to him how FDR's "New Deal" programs did not help the recession despite what the history books taught us. Many economists now believe that FDR's monetary policy (which was primarily Keynesian) actually prolonged the depression. This is why Roosevelt's Secretary of Treasury and his close confidante Henry Morgenthau said:
"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong...somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises...I say after eight years of this Administration we have just as much unemployment as when we started...and an enormous debt to boot!"
I explained to him how Kennedy, despite lots of opposition, signed legislation to cut taxes and revamped a downtrodden economy. Nixon, LBJ, FORD, and Carter all let government spending get out of control until Reagan came along and slashed taxes. Some economists agree that the Reagan tax cuts helped fuel 25+ years of economic growth.
I'm not going to get into the 2003 Bush tax cuts because we all know (hopefully) these cuts created millions of jobs up until the housing bubble burst in 2008.
I was okay explaining what I had read about history to my friend but became extremely bothered when He said, "Vanessa, you are saying that government "spending" is harmful, and that cutting taxes has worked. You've also given me historical examples. If this is the case, why would Obama and so many people want to do the exact opposite of what works-- if what you are saying is true?"
I didn't know how to answer that question.
I am unequivocally convinced that tax-cuts are stimulative and government spending is retardant. But, surely Obama and his advisor's are smart, right? Later that evening, still haunted by his question, I asked myself, "Why wouldn't Obama want to cut taxes, revamp the economy and go down as one of the greatest presidents?" It would surely make MOST including the "crazy conservatives" (such as myself and some of you who are reading this) incredibly happy!
Think about it: Conservatives would say "Yeah! We get to keep America from falling apart like other socialist regimes!" Lots of the crazy liberals would say, "See, we told you guys not to be afraid! We knew he was a freedom promoting capitalist all along!" Ok, maybe they wouldn't repeat the latter. Because, as we know, LOTS of LIBERALS ABHOR capitalism-even though they benefit from it's fruits....but that's another blog post.
In all seriousness though, why wouldn't they want to follow the recipe for economic prosperity?
I continued to psychologically battle with the prospects of his question. I've heard the theory about how the Democrats are just trying to expand government to ensure that they have more control over the lives of everyday Americans? All I can think is, tomorrow isn't promised, so why wouldn't they devise plans that will benefit their posterity???
It just doesn't make sense because even if I was a Democrat (God forbid), I would want to do what has been PROVEN effective. I mean, that's what any decent human beings would do especially if the livelihood of virtually millions of their constituents rests upon their shoulders.
Maybe some of you reading have some insight. I'd love to read about it.
Here's the scariest prospect that I don't like to ponder because it angers me so:
Could it be that Obama and the Democrat's just don't care whether or not the economy bounces back? Maybe that's what it is! I am reminded of the time when Obama was asked if he would raise the capital gains tax DESPITE the fact that every time capital gains taxes are RAISED government revenue DECREASES and every time said taxes are LOWERED government revenue INCREASES. Why wouldn't they want more money for their social engineering programs?
Aside from Obama blatantly contradicting himself in terms of how he's governing now, it really bothers me to think that we have people in office who want to raise taxes on Middle Class Americans and struggling small businesses to pay for what they consider to be priorities. It irks the hell out of me that our elected officials are okay with passing cap and trade despite the minuscule effect it will have on
The fact that we have people in office who are more concerned about their "power" and "status" ---as opposed to doing what's best for all Americans (even if it means going against their ideological persuasions) is truly, truly disheartening.
After a liberal accused me of wanting Obama to fail, I told him that I would be more than happy if the Obama presidency was a success because that means the quality of life for ALL Americans improves. I also explained to him that I would be MORE than willing to concede that I was wrong about Obama because in the end it's really not about the titles "Republican", "Democrat", "Conservative" or "Liberal" it's all about who helps Americans do what we do best and that's work hard (spend most of our money the way we want), volunteer our time and resources, go to church, enjoy our families, culture, values, and FREEDOM.
Posted by Vanessa at 7/18/2009 6:07 PM 
Categories: Economics,Obamanomics
Tags: capital gains Cap and Trade Obama raising taxes middle class socialized medicine
Categories: Economics,Obamanomics
Tags: capital gains Cap and Trade Obama raising taxes middle class socialized medicine
Hey Vanessa,
I was just having that EXACT conversation this evening with someone...that is so funny I would see your blog tonight!! Anyway, the only thing we could come up with is that Obama wants complete government control, and he would fore go prosperity to get there. He just might be narcissistic enough to think he can strong hold this Country and "change" it into the Country that he envisions, which is much more in line with Eastern Europe. He has people in the House that agree with his visions and that is the scariest part. Just how long it will take the Blue Dog Dems to vote against him?? Well that remains to be seen, but I would say they are starting to see the light as we speak and, man they are our saving grace...Is that anything close to what you are thinking??
Love ya girl!
Roslynn Pomahatch ;p
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Funny, you never see quotes like Morgenthau's in the mainstream media. Probably because socialism would work very well for those in the mainstream press, if not for the rest of us.
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