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….
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:
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.