Here are the charts:
If you follow the link above to the site, you can make the charts larger. It really is not a pretty picture.
John Hinderaker at Power Line posted an article yesterday about President Obama’s claim that he plans to pay down the debt in a balanced fashion–increasing taxes on the wealthy to increase revenue and reduce the deficit. Aside from the fact that it is historically proven that raising taxes does not increase revenue, there are some definite problems with that approach.
This is a picture of a concept called the Laffer Curve:
As the illustration states, 50% is not necessarily the ‘magic number’–that number could be anywhere. The best real life illustration of this principle is the migration of millionaires out of Maryland after the tax on millionaires was increased (see rightwinggranny.com). People who will be impacted by large tax increases on the upper middle class (no–they are not ‘the rich’) usually have the means to shelter their wealth from the tax man (check out the financial disclosure statements of some of the Kennedy’s running for office).
The article at Power Line shows a graph of what President Obama’s budget plan will actually do for the deficit. The graph is based on figures from the Office of Management and Budget (OMB):
As voters, we need to be aware of the consequences of another four years of President Obama’s economic policies.
Some of his statements:
Last year the economy grew at a rate of 1.1 and we generated about 150,000 jobs a month. No one thought that was a good year. …If anything goes wrong, we do go back into recession. …I think it’s a pretty fragile situation. …This is a very, very weak recovery. …We should be adding 250,000, 300,000, 400,000 jobs a month, which we would be if the economy was growing faster.
A caller remarked:
If President Obama is trying so hard, why have we not had a budget?
The President talks about saving the automobile industry. What about the bond holders that were swept under the rug and lost all their money because all the money was given to the unions?
Mr. Pethokoukis commented that the President will be coming out with a plan today to extend the Bush tax cuts on taxpayers earning less than $250,000. Mr. Pethokoukis pointed out that the plan the President is proposing represents a $70 billion tax increase on those earners, many of which are small business owners. There is no way that helps the economy.
Mr. Pethokoukis also reminded us that during the 1983 recovery from the Jimmy Carter recession, we have one month where the economy gained one million jobs. A recovery after a severe recession should post that kind of numbers—not the numbers we are currently seeing.
Don’t be fooled by the campaign rhetoric—the Obama economic plans have not worked.
The U.S. economy created just 80,000 jobs in June and the unemployment rate held steady at 8.2 percent, reflecting continued slow growth in the economy with the presidential election just four months away.
The Bureau of Labor Statistics said private payrolls increased 84,000, while the government lost 4,000 jobs. Economists expected job growth of about 100,000 and the unemployment rate to be unchanged, though many had increased their forecasts based on some recent indicators.
President Obama has been in office for 3 1/2 years. His two major legislative programs were passed by Congress–Obamacare and the 2009 stimulus, which was supposed to keep unemployment below 8 percent and reduce it to about 6 percent by now. It really is time to evaluate whether either of these major legislative initiatives has done anything to help employment in America. At the same time, we need to look and see if any other decisions by the White House have negatively affected employment in America. How many jobs were lost by the President’s opposition to the Keystone Pipeline? How many jobs have been lost because of the ‘permitorium’ on oil drilling in the Gulf of Mexico? How many jobs have been lost by the uncertainty in the business community because a President and Congress have not passed a budget in three years?
Admittedly, President Obama inherited an economic mess when he took office. However, he asked to inherit that mess because he thought he could fix it. It is becoming extremely obvious that President Obama’s economic policies will not fix this mess. It is time to give someone else a chance to set things aright.
This can be turned around. Some of us are old enough to remember the Jimmy Carter Administration–high interest rates, high inflation, gas lines, declining influence abroad, etc. Those years were followed by some of the most rapid economic growth in American history due to the leadership skills of President Ronald Reagan. I am praying that Mitt Romney has those same leadership skills–we need them now!