Tag Archives: Marxist

Obama says that limited government and capitalism have never worked

Obama Economic Record November 2011
Obama Economic Record November 2011

Investors Business Daily explains the latest speech on economics from the man who has doubled Bush’s 2007 unemployment rate, and increased Bush’s 2007 budget deficits tenfold.

Excerpt:

One thing is certainly true about President Obama — no matter how many times people point out the falsehoods in his speeches, he just keeps making them. Case in point: his latest “economic fairness” address.

In that speech Tuesday, Obama once again tried to build a case for his liberal, big-spending, tax-hiking, regulatory agenda. But as with so many of his past appeals, Obama’s argument rests on a pile of untruths. Among the most glaring:

• Tax cuts and deregulation have “never worked” to grow the economy. There’s so much evidence to disprove this claim, it’s hard to know where to start. But let’s begin with the fact that countries with greater economic freedom — lower taxes, less government, sound money, free trade — consistently produce greater overall prosperity.

Here at home, President Reagan’s program of lower taxes and deregulation led to an historic two-decade economic boom. Plus, states with lower taxes and less regulation do better than those that follow Obama’s prescription.

Obama also claimed the economic booms in the ’50s and ’60s somehow support his argument. This is utter nonsense. Taxes at the time averaged just 17% of the economy. And there was no Medicare, no Medicaid, no Departments of Transportation, Energy or Education, and no EPA. Had Obama been around then, he would have decried it all as un-American.

• Bush’s tax cuts on the rich only managed to produced “massive deficits” and the “slowest job growth in half a century.” Budget data make clear that Obama’s spending hikes, not Bush’s tax cuts, produced today’s massive deficits.

And Obama only gets his “slowest job growth” number by including huge job losses during his own term in office. Also, monthly pre-recession job growth under Bush was about 40% higher than post-recession growth has been under Obama.

• During the Bush years, “we had weak regulation, we had little oversight.” This is patently false. Regulatory staffing climbed 42% under Bush, and regulatory spending shot up 50%, according to a Washington University in St. Louis/George Washington University study. And the number of Federal Register pages — a proxy for regulatory activity — was far higher under Bush than any previous president.

• The “wealthiest Americans are paying the lowest taxes in over half a century.” Fact: the federal income tax code is now more progressive than it was in 1979, according to the Congressional Budget Office. IRS data show the richest 1% paid almost 40% of federal income taxes in 2009, up from 18% back in 1980.

• We can keep tax breaks for the rich in place, or make needed investments, “but we can’t do both.” Not true. Repealing the Bush tax cuts on the “rich” would raise only about $70 billion a year, a tiny fraction of projected deficits. With or without the Bush tax cuts, the country can’t afford Obama’s agenda.

The Heritage Foundation describes the effects of the Bush tax cuts.

Excerpt:

President Bush signed the first wave of tax cuts in 2001, cutting rates and providing tax relief for families by, for example, doubling of the child tax credit to $1,000.

At Congress’ insistence, the tax relief was initially phased in over many years, so the economy continued to lose jobs. In 2003, realizing its error, Congress made the earlier tax relief effective immediately. Congress also lowered tax rates on capital gains and dividends to encourage business investment, which had been lagging.

It was the then that the economy turned around. Within months of enactment, job growth shot up, eventually creating 8.1 million jobs through 2007. Tax revenues also increased after the Bush tax cuts, due to economic growth.

In 2003, capital gains tax rates were reduced. Rather than expand by 36% as the Congressional Budget Office projected before the tax cut, capital gains revenues more than doubled to $103 billion.

The CBO incorrectly calculated that the post-March 2003 tax cuts would lower 2006 revenues by $75 billion. Revenues for 2006 came in $47 billion above the pre-tax cut baseline.

Here’s what else happened after the 2003 tax cuts lowered the rates on income, capital gains and dividend taxes:

  • GDP grew at an annual rate of just 1.7% in the six quarters before the 2003 tax cuts. In the six quarters following the tax cuts, the growth rate was 4.1%.
  • The S&P 500 dropped 18% in the six quarters before the 2003 tax cuts but increased by 32% over the next six quarters.
  • The economy lost 267,000 jobs in the six quarters before the 2003 tax cuts. In the next six quarters, it added 307,000 jobs, followed by 5 million jobs in the next seven quarters.

The timing of the lower tax rates coincides almost exactly with the stark acceleration in the economy. Nor was this experience unique. The famous Clinton economic boom began when Congress passed legislation cutting spending and cutting the capital gains tax rate.

If, in the 2012 election, half the country decides to vote for the person who gives the best speeches and who is cheered on the Comedy Channel, then we are going to have four more years of 9% unemployment and 1.4 trillion dollar deficits. Barack Obama knows nothing whatsoever about economics.

UPDATE: Obama says that small business owners didn’t build their own businesses

FARC terrorist leader Alfonso Cano killed by Colombian armed forces

Map of South America
Map of South America

From the Heritage Foundation.

Excerpt:

The armed forces of Colombia have scored a major battlefield victory. They finally hunted down, confronted, and killed the leader of the narco-terrorist Revolutionary Armed Forces of Colombia (FARC), Guillermo Leon Saenz, widely known by his alias Alfonso Cano.

A guerrilla for decades, Cano assumed the top leadership of the FARC following the natural death of founder Manuel Marulanda (2008) and the elimination of senior figures Raul Reyes (2008) and Jorge Briceno (aka Mono Jojoy, 2010).

Seen by some as a modern-day version of the “good revolutionary,” Cano—a life-long advocate of armed violence and terrorism—fell in combat with the Colombian armed forces as they rappelled their way into his secret jungle hideout. Cano was also indicted in a U.S. court for drug trafficking along with dozens of other FARC leaders and had a $5 million price on his head.

FARC is a Marxist terrorist group.

The Economist reports that the Colombian economy is also doing well.

Excerpt:

WHEN the figures are finally tallied, Colombia may prove to have weathered the world recession better than any other of the larger Latin American countries. After a slight contraction at the end of 2008, the economy has been growing modestly this year. This resilience stems from continued foreign investment, an increase in government spending on public works and easier money: since December the central bank has cut interest rates by six percentage points, to 4%, a steeper drop than anywhere in the region outside Chile.

[…]President Álvaro Uribe’s security policies have helped to restore confidence. Investment soared, from 15% of GDP in 2002 to 26% last year, says Mr Zuluaga. Private business has retooled. After many delays, the government has issued licences to expand several ports; this month it hopes to award a contract for the first of four big road schemes, costing a total of $7.5 billion over four years. It hopes for investment of up to $50 billion in mining and oil over the next decade.

And liberal MSNBC has more on the booming Colombian economy.

Excerpt:

…Colombia’s revival is benefiting U.S. economic and political rivals as much as or more than the U.S. itself.

The long delay in signing the treaty allowed Latin America’s fourth-largest economy to strengthen ties with China. It also damaged U.S. credibility in the region, says Eric Farnsworth, vice-president of the Council of the Americas in Washington. “The delay in passing this called into question the United States’ reliability as a partner,” Farnsworth says. “There’s a strategic component to this. It’s not just about economics and trade.”

[…]As talks between the U.S. and Colombia dragged on, Colombia and China forged plans for a rail link between the Pacific and Caribbean that could draw freight away from the Panama Canal. Colombian President Juan Manuel Santos aims for a trade deal with South Korea. To tighten his connections to high-growth Asia, he’s also seeking membership in the Asia-Pacific Economic Cooperation group. “While Washington was debating whether the accord with Colombia was opportune, we advanced in our foreign policy strategy,” says Trade Minister Sergio Diaz-Granados.

Santos has cooperated more with his South American neighbors, organizing a meeting of finance ministers to discuss ways to protect their currencies and economies from the debt crisis in the U.S. and Europe. He supports a stock trading platform with Colombia, Chile, and Peru and wants to bring Mexico and Panama on board. Exports to Brazil have surged tenfold. While the U.S. remains Colombia’s biggest export market, with $16.8 billion in 2010 sales, up 30 percent from a year earlier, sales to China more than doubled last year, to $1.2 billion. Sales to the European Union are also rising, to $5.4 billion this year through August, more than in all of 2010. An EU trade accord could come next year.

The government has reduced cocaine cultivation 37 percent and halved the number of insurgents to about 8,000. Improved security has spurred enough growth to win an investment-grade credit rating from Standard & Poor’s as well as investment from billionaires. Colombia’s victories over the guerrillas opened up swathes of countryside to exploration for oil, gold, and coal. Mexican billionaire Carlos Slim’s push into crude has helped fuel foreign investment that the government says may reach a record $12 billion this year. The economy grew 5.2 percent in the second quarter.

The U.S. faces more competition from Colombia’s neighbors and Canada. In 2010, U.S. agricultural exports to Colombia fell more than 50 percent from 2008, to $827 million, as Argentina’s more than doubled, to $1 billion, according to a report by Senator Richard Lugar’s staff. Diaz-Granados attributes the U.S. setback to the delay in the free-trade agreement.

An August accord reduces or ends Colombian tariffs on Canadian wheat, paper, and machinery. Bank of Nova Scotia, Canada’s third-largest lender, agreed in October to buy 51 percent of Banco Colpatria Red Multibanca Colpatria for about $1 billion—Scotiabank’s largest international takeover. “This is not the Colombia of old,” says Brian J. Porter, group head of international banking for Scotiabank. “The more we looked at Colombia, the more excited we got about the economic potential.”

We really should have signed that trade deal 3 years ago – it would have helped out economy a lot.  But unions got Obama elected, and the unions decided that the trade deal needed to be held up for 3 years. And that’s one of the reasons why we’ve had over 9% unemployment. Our economic policy is being set by unions, not by economists. But in Colombia, economic policy is set by economists, not unions.

Why do conservatives accuse Obama of engaging in “class warfare”?

From the left-leaning Politico. (H/T Dennis Prager)

Excerpt:

Obama has characterized Republican votes against his jobs bill — which are predicated, at least in part, over concern that new, temporary spending financed by tax increases will not help the economy — as a rejection of the most wholesome of American workers.

“They said no to more jobs for teachers, no to more jobs for cops and firefighters,” Obama said during a speech Wednesday to the administration’s Forum on American Latino Heritage, “no to more jobs for construction workers and veterans, no to tax cuts for small-business owners and middle-class Americans.”

But in these same remarks, Obama also subtly suggested something far worse — that his opponents are racially biased.

“I ran for president for the same reason many people came to this country in the first place,” he explained. “Because I believe America should be a place where you can always make it if you try, a place where every child, no matter what they look like [or] where they come from should have a chance to succeed. I still believe in that America. I believe we can be that America again.”

The clear suggestion is that someone has made this country a place where what a child looks like can hinder them — and Obama is the one who can erase the discrimination that has been permitted to return.

First lady Michelle Obama made this point more explicitly at a Washington fundraiser the night before.

“Will we be a country where opportunity is limited to just the few at the top?” the first lady asked. “Or will we give every child — every child — a chance to succeed, no matter where she’s from, or what she looks like, or how much money her parents [have]? Who are we? That’s what’s at stake here.”

Her suggestion that “what’s at stake here” in the 2012 race is whether a child will be judged by color is an outrage, implying that a Republican victory would result in discrimination.

Obama’s rhetoric has become increasingly shrill. I find it very alarming that the President of the United States is somewhere to the left of celebrity blowhards like Michael Moore. How does he expect to negotiate with people in good faith when he is constantly impugning their motives and caricaturing their policies?

In other news, Herman Cain, who is black, leads by 8 points in the Iowa Caucuses. Wouldn’t it be funny to see Barack Obama, who is only half-black, take on Herman Cain in a debate, and accuse him of racism? The rich, pampered Ivy-league ACORN trainer against the businessman with a Masters in Computer science from Purdue, whose mother was a cleaning woman, and whose father worked three jobs.