Posted on 08/08/2011 5:38:37 AM PDT by 1rudeboy
Last night for the first time in history U.S debt was downgraded. The Left still denies that President Obama has a lot of responsibility for this situation, instead laying blame on Republican refusal to raise taxes on the rich.
As I have written previously, it is dishonest to give voters the impression that tax increases on the rich is a solution to the deficit. In the latest projection by the Congressional Budget Office, the ten year deficit is estimated at 13 trillion dollars. By contrast, Obama’s various tax increases on the rich will only bring in 1 trillion in the same period.
The 13 trillion dollar deficit which the President helped create and long terms entitlement deficits are the main reason why S&P downgraded U.S debt, not the 1 trillion in tax increases which Republicans prevented.
As a response to the economic crises and based on ideological conviction, President Obama decided to expand federal non-defense spending more than any President in recent history. This unprecedented expansion of government can perhaps be justified by orthodox Keynesianism. But we should not allow the left to deny the magnitude of expansion itself, which they are trying to do.
Let me illustrate how much of a departure from history the Obama Presidency represents in terms of spending. I will graph non-defense federal spending as a share of GDP since 1975.
(Excerpt) Read more at super-economy.blogspot.com ...
Fight of the Century: Keynes vs. Hayek Round Two.
This assumes Obama's intent is to close the deficit. Of course it isn't. Remember this exchange during his debate with Hillary Clinton? Obama was asked why he would suggest raising capital gains rates when revenues went UP each time they were lowered, and it would affect 100 million people and this was his answer:
OBAMA: Well, Charlie, what I've said is that I would look at raising the capital gains tax for purposes of fairness. We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year -- $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That's not fair.
It's not about revenue with this guy, he admitted he would raise taxes even knowing it would reduce revenue. Because it's more fair. Commie.
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