President Obama's Bottom Line

This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse," " said President Obama while stumping for his $820 billion stimulus package.

It will be "a catastrophe" are the words of our President concerning the Congressional bill if it does not pass.

"We are enduring the worst economy since the Great Depression" states President Obama before the television cameras.

Nearly 600,000 thousand jobs were lost last month, unemployment is at 7%, and the stock market had its worst January showing down 8% ever. These figures make President Obama's appeal for decisive and immediate action much more compelling.

But is not accuracy not more important than speed? After all, Treasury Paulson determined that $700 billion was necessary to avert financial Armageddon. The first half went secretly into the pockets of big banks. Stock prices have sunk even afterwards while unemployment continues it's climb. Credit markets have eased a bit. But confidence, lending, and business sentiment have tightened ever since.

According to President Obama, government is the only solution to the marketplace turmoil. With the "failed policies of tax cuts in the past eight years", the President wonders why he should consider these "old worn out arguments of more tax cuts" during an impending crisis in which he was elected to fix.

Americans elected President Obama to four years based upon his his "change that you can believe in" policies. He should govern as he sees fit. But the President shoudn't be pulling the wool over the people's eyes with less than truthful remarks.

This is a weak economy that is getting weaker. However, 10% unemploymnet marked the days of 1981 with 21% interest rates. During 1973-1974 high unemployment and stagflation ensued eating people's savings and earnings.

The way out of this period were structural tax rate deductions. Personal income tax rates were revised downward from 70% to 28%. Capital gains tax rates were reduced as well. The greatest peace time expansion for 11 years ensued. JFK understood capital friendly policies in 1961 and passed a stimulus bill reducing taxes thereby spurring economic growth during the 1960's. Warren Harding and Calvin Coolidge separately reduced marginal tax rates in the 1920's giving America a 7% GNP growth rate toward the longest peace time expansion in U.S. history.

President Obama should understand that tax cuts alone have worked in the recessions of the past. But government spending has been detrimental to the growth of economic development over the long-term. The liberal Democrats of the 1960's promised a panancea ushered in by the "Great Society" spending that was forthcoming. But the spending led to inflation in the 1970's and stagnant growth in private industry.

Democrats aren't interested in what works. Tax cuts have worked. History has vindicated this position. It's the spending that reigns out of control and has caused all sorts of problems. In the last 40 yeasrs Congress has imposed an undue burden upon the people witht the egregious and outlandish spending habits since the days of LBJ.

President Obama's potion to magically hike tax rates is intended to:

Balance the budget, spur economic growth, add jobs, halt foreclosures, create a green economy, provide universal health care coverage, and expand welfare coverage.

Indeed, he is either the Messiah and subject to no laws of which men are subject to. Or he is a traveling evangelist with a phony message to which 60 million plus voters were duped into believing.