Aug 11, 2011

President’s Growth Plan: More Stimulus, Higher Taxes

During a trip to Michigan today the President promised to put forth policy proposals to grow the economy and promote job creation.

President Obama Pledges To Put Forth Policies To Grow Economy & Create Jobs. “Now given the weaknesses of the economy, we need to do even more than, that and over the coming weeks I’m going to be putting out more proposals, week by week, that will help businesses hire and put people back to work.” (President Obama, Remarks, 8/11/11)

Yet, the President went on to advocate against spending cuts to achieve greater deficit reduction. He argued instead for massive long-term tax increases to fund more failed stimulus spending.

President Says More Spending And Higher Taxes Necessary For Economic Growth. “Now, we do have to pay for these things, and in order to pay for these things congress has to finish the job of reducing the nation’s budget deficit in a sensible responsible way. Not just with more cuts this year or next year. What we need is a long-term plan to get our nation’s finances in order. That’s the only way we can invest in places like this” (President Obama, Remarks, 8/11/11)

President Promises To Spend New Revenue From Proposed Tax Hikes On More Failed Stimulus Spending. “That’s how we can fund the research at the department of energy, that’s how we can fund the community college that trained folks to work here. That’s how we can fund the infrastructure and the technology that will help us win the future.” (President Obama, Remarks, 8/11/11)

When will the Administration come-to-terms with the fact that more spending and higher taxes are antithetical to economic growth?

Another Keynesian Spending Blow-Out Will Not Grow The Economy. “Where will the growth come from? Certainly not from another round of failed Keynesian spending blowouts. The White House’s lame call for an infrastructure bank this week is merely a stimulus redux, and Republicans have seen enough “shovel ready projects” to last two lifetimes. Nor will Republicans, in an era of $1.5 trillion deficits, get very far pitching pro-growth tax rate cuts, a la Reagan 1981, without major offsetting loophole closings.” (Steven Moore, “Tax Reform’s Moment?,” The Wall Street Journal, 8/5/11)