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Obama’s Robin Hood Economic Plan

June 12, 2008

Time’s Justin Fox wrote an article attempting to explain Barack Obama’s economic plan.  “It’s clear that Obama’s economic policies aren’t a continuation of the Bush era.  But what they are remains a hard-to-summarize mix of moderate Democratic standbys, populist silliness and the occasional truly visionary proposal.”

But what is Obama’s economic plan?  Fox never really said.  Larry Kudlow of the National Review Online had a better description of Obama’s policies.  He will spend $150 billion of our hard earned tax dollars on a green energy plan, expand health insurance by $65 billion, force renegotiations on trade deals( effectively raising barriers to free trade), regulate profits of drug companies, health insurers and energy firms, establish mortgage-interest tax credits, double the number of workers receiving earned-income and triple this benefit for minimum-wage workers.Obama’s economic spending plan is now around $800 billion, with a population of 300 million, that would make each person’s share of the proposal $2,666.67. 

How will Obama pay for this?  And what will the results be?  The green energy plan and increase in the earned-income credit wiil require a tax increase, that Obama says will be paid for by rolling back the Bush tax cuts.  Obama says that will increase taxes for anyone earning more than $150,000 a year.  The problem with that is that everyone benefited from the Bush tax cuts.  And everyone will be punished by allowing those tax cuts to expire.  The people at the bottom end of the earning scale will be punished the most.  It is the rich who do the hiring, they create the jobs, they buy the products and services that give jobs and revenue to smaller family businesses.  By increasing the tax burden on the wealthy, Obama will cause the wealthy to cut back on their spending, thereby reducing the job opportunities and income for the poor and middle class, who already will have to face a higher tax rate by the tax increase. 

Obama has pledged to regulate profits of drug companies, health insurers and energy firms.  That will have the effect of causing companies to cut back on employees and services to protect their profits.  Customers that need more expensive drugs won’t be able to get them, customers who engage in risky behavior will have their health insurance canceled and have to go into the Government health plan, thereby increasing the cost of the Government plan.  Insurance carriers will increase rates to maintain their profits with fewer customers.  Energy firms will compensate by reducing production to keep prices up and cutting jobs to cut expenses.

Renegotiating tade deals will force tax revenues onto imports and exports, increasing prices in America’s stores, decreasing our exports, increasing trade deficits, and costing still more American jobs.

Obama has said he would increase the death, capital gains and dividend taxes.  That would have the benifit of causing people to withdraw from investing or building a business to pass to their families, even family farms would be affected adversely. 

Larry Kudlow, of the National Review Online said,”Obama wants you to believe that America is in trouble, and that it can only be cured with a big lurch to the left.  Take from the rich and give to the non-rich.  Redistribute income and wealth. It’s an age-old recipe for economic disaster.  It completely ignores incentives for entreprenuers, small family-owned businesses, and investors.  You can’t have capitalism without capital, Obama would penalize capital, be it capital from corporations or investors.”  I would add that Obama would also penalize the poor and middle class by punishing the “evil” wealthy.

Robin Hood stole from the rich, gave to the poor.  Obama will steal from the rich, to give to the poor, but only until the rich have nothing more to steal.  Then the poor can pay, too.

 

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One Comment leave one →
  1. June 12, 2008 11:00 pm

    I must say this is a great article i enjoyed reading it keep the good work 🙂

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