Bob Davis at WSJ
explains what an Obama presidency will mean for the economy:
Sen. Obama is proposing to use the government to remake economic policies in a way that hasn't been seen in Washington in decades...
If the economy is faltering if and when he takes office...Mr. Obama would push for a stimulus plan with a price tag of $115 billion, his aides say. The plan would include $1,000 rebates for moderate-income and middle-class families, aid to state and local governments and heavy spending on roads, ports and levees and other infrastructure to create jobs.
Sen. Obama, in campaign appearances and discussions with staff, has said that he would start his term in office with three big economic priorities, apart from a possible stimulus plan. One would be a government health-care plan to cover millions without insurance. Another would be a system of tradable pollution permits to reduce emissions and bankroll alternative-energy projects. He'd also push the first increases in income-tax rates since 1993 and in capital-gains taxes since 1986.
In total, his top priorities would cost hundreds of billions of dollars a year, and some of them might require a stiff increase in regulation.
Gotta say this is about the worst set of economic priorities he could come up with. A costly stimulus package which has no incentives to increase output or investment. Then a bunch of pork-barrel spending whose economic worth will evaporate in a mist of corruption. Then destroying America's healthcare system while simultaneously bankrupting the country. Add in some more environmental regulations to an American manufacturing base that already has trouble competing with nations whose environmental regulations are incredibly lax in comparison to ours. This should manage to close the last remaining factories. Finally tax productive work and capital investment to grind the economy to a complete halt.
ReplyDeleteHe won't have the benefit that Clinton had, which was to come off ten years of Reaga-Bush economic growth. He'll inherit a country on the brink of economic disaster and will be doing his best to shove us off the cliff.
McCain will cave in to the democrats and do something equally stupid but the republicans will join him out of party loyalty.
ReplyDeleteAt least with Obama in office the republicans might grow a spine.
Sorry, I can't vote for Songbird Turncoat McCain.
-Richard