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Friday, June 20, 2008

Obama: An Economic Illiterate

Obama recently gave a speech outlining his plans to stimulate our economy. He planned to raise taxes on oil companies, eliminate the Bush tax cuts, and have the government take over the health care industry. At the same time, he is against controls on immigration and for Kyoto-style limits on industry.

How on earth will this stimulate the economy?

Obama has finally revealed himself for the idiot he truly is. His so-called stimulus plan will, in fact, kill the economy. I think the man was asleep during Economics 101. Raising taxes on oil companies will raise the price of gasoline. The companies will have to do that to maintain their profit margin. Who pays that tax, in the end? You and I do, which means that we will be able to spend even less on other things.

At the same time, he wants to roll back the Bush tax cuts. This means the largest tax increase in history, a stick-it-to-the-rich move that will affect wealthy individuals and, of course, corporations. How will corporations respond? Leaving. There goes your tax base. As corporations leave, so do jobs. Unemployment rises. More people file for welfare. They become government dependents. Wait... Do I see a pattern in all of this?

The health care industry comprises a huge portion of our economy. It is productive, profitable, and efficient, if expensive. Much of the expense comes from government interference which limits the number of licensed medical schools, keeping the price of a doctor visit artificially high. Obama proposes to socialize health care, having the government take over a now-profitable segment of the economy. I'm sure he's planning on making it just as successful as other government businesses, like the post office. There are idiots out there, even in the tax-paying middle class, who see this as a freebie. I'm sure Obama does, as well. Where does the government get its revenue? Taxes. Who pays them? We do. Is the government likely to be more efficient than private industry? History says no. So we'll have to pay even more for health care, through taxes. I tell you, this man is a genius.

Ah, but maybe we can force wages up. After all, if the average working man is earning more money, high taxes won't be as important, will they? I know, let's allow people to flood the labor market from other countries. After all, the more workers there are per available job, the more they get paid, right? Right? Um, why do I hear crickets chirping?

Last but not least, let's put onerous environmental regulations on the few industries we have left. What the heck; we've killed the rest of the economy by now, anyway. If they can't afford to retrofit their factories, shut them down. Or, make them buy carbon credits from factories in other countries that produce nothing, but might pollute if not paid off. That sounds a lot like extortion to me. If an Italian does it, it's a crime. If Al Gore does it, he gates a Nobel Prize. Obama wants to paralyze the economy, not stimulate it.

The real danger is if Obama gets elected with a strong Democratic majority in both houses of Congress. Then, this type of lunacy might actually become public policy. The path to Hell... well, you get it.

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