NooVoodoo Obamanomics


UPDATE 2:  Apparently at less than two months into Obamanation, the bloom is coming off the Obama rose….  David Bloom of the New York Times and some of the other self-described “moderates” who were enthralled with the notion of an Obama presidency are beginning to experience buyer’s remorse! (imagine that).  Click here for more….

ORIGINAL POST:

If you live long enough, all things old become new again.  President-elect Obama and his newly-seated Democrat-controlled Congress are pushing for quick approval of the all new, revamped for the 2009 model year, Voodoo Economics II:  The Rise of Obamanomics!  

What deja vu!  Thinking about today’s news takes me back to Michigan’s hot summer of 1980, when republican presidential candidate George (H.W.) Bush first coined the term “voodoo economics” in the heat of a tough primary battle against former California Governor Ronald Reagan.  The U.S. was in the midst of the Carter-era malaise of stagflation and the misery index.  Reagan’s plan for re-energizing the American economy included four key elements:  income-tax cuts, new expenditure priorities, monetary restraint, and regulatory reform.  

The intent of “Reaganomics” or “supply side economics” was to jumpstart economic growth through reduced income tax rates, providing strong incentives for individuals and businesses to produce and invest more.  The term “voodoo economics” disappeared from G.H.W. Bush’s vocabulary once he became Reagan’s running mate and Vice-President.   As the 1980s proved, Reagan offered not voodoo, but rather successful economic solutions for an ailing U.S. economy.

The Un-Voodoo-ed Truth of Reaganomics

Reaganomics worked, and proved to be overwhelmingly successful in creating the conditions for the strong U.S. economy of the 1980s.  Despite ongoing budget battles and pork-barrel spending by a Democrat-controlled House of Representatives, Reagan’s economic plan:

1.  Brought inflation under control and turned Carter’s lingering economic recession into the longest period of economic expansion in American history;

2.  Cut federal marginal income taxes rates from over  70% (high income earners under Carter saw 70 cents or more out of every dollar earned go to the I.R.S.) to a maximum rate of 28% (a rate that crept back up under Bush I and Clinton to close to 40%); and

3.  Reduced the size of the federal government  and cut burdensome federal regulations to provide a significant boost to productivity, reduce unnecessary costs to U.S. businesses, and eliminate obsolete, duplicative, and unnecessary programs, departments, and jobs.

The True Voodoo of Obamanomics

Fast-forwarding to 2009, we now are witnesses to the true master sorcerers at work conjuring up a new, truly voodoo economic plan, dubbed by incoming Chief Mage POTUS Barack Obama as the “American Economic Recovery and Reinvestment Act” (more accurately referred to as the Generational Theft Act of 2009 by Michelle Malkin).  Sorcerer Speaker Pelosi, Obama, Reid, Dr. Frankendodd, and the rest of the Democrat leadership have truly unleashed all of their liberal notions with this one.  

Obama’s economic stimulus plan includes three key elements, expansion of government, targeted tax rebates to those that pay little or no federal income taxes, and massive pork barrel spending.  The Obamanomics Plan would:

1.  Result in increased federal pork barrel spending from mere “hogs at the trough” to the truly astronomical level of “Pigs in Space,” with surreal trillion-dollar budget deficits becoming the norm

2.  Offer those famously “targeted income tax rebates” from Obama’s campaign that would be limited to those at the lower end of the income scale, while allowing the Bush tax cuts to quietly expire (effectively increasing the income tax burden for our most productive citizens).

3.  Further bloat the size of our federal government by adding as many as 600,000 new federal employees to the payroll!

I’m no MBA and I’ve never taken an accounting class, but I’m certain that if I balanced my checkbook and ran my business using Obamanomics, I would quickly find myself explaining my actions to a bankruptcy judge!

How do Designated Conservatives “Undoo” the “NooVooDoo” of Obamanomics?

As David Limbaugh recently asked in his column, where are the Republican supply siders?  Fortunately, we have a cadre of conservative republican members of the House of Representatives, including Michigan’s own Rep. Pete Hoekstra, who have spoken out against Democrat excesses.  However, they are small in number and need our help!  As designated conservatives, it is up to us to wade into the heady, free-spending party atmosphere in Democratic Washington and do our best to take the keys to the treasury away from Pelosi, Reid, Frankendodd, and Obama.  

Support the designated conservatives in Congress!  They are all that stand between us and the Democrat’s dream for America.

UPDATE:  Where are the supply siders?  At the Heritage Foundation, of course.  Nathaniel Ward recently posted a great article outlining the same topics covered in “NooVoodoo Obamanomics,” but in a much more erudite manner.  Check it out here.

Related Posts:  COLD TURKEY – QUITTING THE INCOME TAX HABIT
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4 Responses to NooVoodoo Obamanomics

  1. Darrel R Mitchell says:

    Reaganomics also doubled the national debt…it cost more than any administration in history up to then. The theory of “trickle-down”
    economics did not work because of greed by the richest few in our society. George W. Bush revived the theory and again, doubled the national debt. Explain their actions to a bankruptcy judge! I am tired of people living in ideological straight jackets!!

    • Thank you for your thoughts. It is amazing how ignorant people can be of history, especially recent history. Reaganomics did not double the national debt – that was the result of Tip O’Neill and the Democratic House leadership’s penchant for pork barrel spending. Reagan’s budgets (which focused on trimming federal spending and eliminating poor-performing and duplicative federal programs) were routinely dead-on-arrival in the House of Representatives, where Spend! Spend! Spend! was (and now is once again) the rule.

      Reaganomics worked because reducing punitive marginal tax rates freed up private capital for business investment and purchasing. Those investments and purchases meant more work for Americans, which meant more jobs and more money flowing through the economy. No matter how much liberals talk down the 80’s, the facts remain that Reagan’s conservative policies unleashed the longest sustained period of economic growth this country has ever known.

  2. Darrel R Mitchell says:

    Thank you for your thoughts…as long as someone disagrees with a “conservative” about their views they are automatically branded a “liberal.” That is what’s wrong with America today. I again repeat…
    people in America are living in ideological straight jackets influenced by an “r” or a “d” and I refuse to be so intellectually
    compromised. Reagan spent, spent spent as well and he had his share of scandals as well. I am not defending or supporting any of these politicians…they are all flawed because they are human. The one “true” government has yet to be unleashed on mankind, but when it does, all of this mindless bickering will stop, and that will be a great day to behold. Reagan or Obama are
    not political gods.

  3. David V says:

    “Reagan spent spent spent…” The President doesn’t spend a dime… Congress does. Period…. I *distinctly* remember the Dems bragging about how Reagans proposed budgets were “Dead on arrival…” In fact Reagan vetoed a $14B supplemental spending bill in 1982 only to have his veto overturned by congress…. The fact remains: Reagan’s tax and regulatory policies *doubled* net tax income at the Federal level.
    As for you “ideological straight-jackets” comment, well… you are intellectually compromised by not living in the real world of politics.

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