Our way to prosperity

President seems to think it's by infusing the government with more money

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Did you hear what he said? Did the nation hear what he said?

Lost in the fiscal cliff panic and the New Year’s hangovers and bowl games and family get-togethers last week was a truly remarkable statement that reveals where this president is not only likely to go terribly wrong, but is sure to take the country with him if he continues to get his way.

In the wake of his success in raising taxes in the fiscal cliff deal, President Obama said the nation can’t “simply cut our way to prosperity.”

Yet he acts as if we can tax our way to prosperity. And no one is challenging that tack.

Actually, a good case can be made that we can, indeed, go a long way toward creating the conditions for prosperity by cutting taxes and shrinking government. The more money that is kept in the private economy, the more it can flourish.

The Reagan approach, which was to hold the line on taxes and spending as much as he could while dealing with an entrenched Democratic Congress, actually doubled revenues flowing to the federal government in the 1980s.

But even ignoring that fact, how can Mr. Obama insinuate that higher taxes are part of a formula to increase prosperity? Unless you think that taking money from those who’ve earned it and converting it to the government’s use is somehow “creating” anything.

It certainly doesn’t create prosperity, except in Washington.

The statement betrays a government-centric belief system that is completely at odds with economics and reality.

Mr. President, again, a good case can be made that cutting government spending and lowering taxes would till the ground for future prosperity.

But putting that aside, it’s ludicrous to believe that taxing people creates prosperity!

How can a leader get away with such illogic? On national television, in broad daylight?

Well, for one thing, he’s still personally popular. For another thing, the “mainstream” media hardly ever challenge him. To wit: Famed tough interviewer Barbara Walters recently had the Obamas on a couch and had no inquiries about the state of the country or solutions going forward. She did, however, wonder what the family dog was getting for Christmas.

Where is the serious dialogue about the vital issues America is facing – and which solutions really have a chance of working?

As we’ve noted before, the president seems to have fooled an entire nation into believing that the federal government is the same as the economy. When he claims that cutting government spending can’t create the conditions for prosperity, he’s trying to tell you that infusing the federal government with more money will, instead, somehow create prosperity.

When did the hypnosis occur?

And when will we wake up?

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Riverman1
79578
Points
Riverman1 01/07/13 - 06:02 am
9
2
Don't Blame Obama

He was taught and influenced by liberals who practice fuzzy math. The other day liberal economists were defending the decision to extend unemployment benefits again. (What is it up to now... 20 years?) They announced the billions in benefits would result in lots more than the amount given away in business activity and revenue. If that were true we have found the key to an opulent life without work. The less we work, the wealthier we become.

avidreader
2999
Points
avidreader 01/07/13 - 07:22 am
8
2
Barbara Walters!!

The Obamas never would have agreed to the interview with Walters unless the entire process was scripted in the President's favor. The days of "hard journalism" are over.

Has anyone heard the news about Kim Kardashian? She's with child and might pose nude. I can hardly wait!

Techfan
6461
Points
Techfan 01/07/13 - 07:52 am
5
8
Champagne wishes and caviar

Champagne wishes and caviar dreams. Living the lifestyle of the rich and famous on around $430 a week on unemployment and foodstamps. Yeehah!!! Tell the crew to get the yacht fired up.

nofanofobama
6750
Points
nofanofobama 01/07/13 - 07:58 am
6
2
the left's stale arguement

the left's stale arguement about spending cuts amount to this, we cant take money out of the economy..yet these are the same that will tell you it ok to tax the wealthy...this takes taxes money out of the economy that really does affect jobs. thru discreationary private sector spending which creates job for the middle class..the sad truth is that as grown ups we will have pain is in the equation to get us off the track of greece...but the pain has to do with GOVT spending not taxing those who truyly help the economy chug along.

Humble Angela
41338
Points
Humble Angela 01/07/13 - 08:50 am
7
2
Techfan...there must be
Unpublished

Techfan...there must be something to it or there wouldn't be record numbers of people doing it. Your sarcasm aside, the facts speak for themselves.

Techfan
6461
Points
Techfan 01/07/13 - 09:31 am
4
8
I've said this before but no

I've said this before but no one seems to get it. US revenues for 2011 minus payroll taxes (which should be reserved for SS and Medicare) was around $1.4 trillion dollars. Real spending on defense is around $1.3-$1.4 trillion dollars (Defense budget + homeland security + veterans affairs + all of the other defense related spending scattered through other departments, ie. all of the spending at SRS and all other nuke projects is in Dept of Energy budget). That leaves virtually ZERO to operate the rest of the entire US Government. Some cuts are going to have to be made in every department. The $1.4 trillion dollar gorilla in the room, however, is Defense. We can make some cuts all around the board but, we have to slash defense spending and we're going to have to raise revenue dramatically. Where are we going to get this revenue? Since the 1970's, the only group that has had any kind of revenue increase are those at the very top. The Frank Luntz type labeling of them as the "job creators" has gone through a 3 decade experiment and it has failed miserably. They are not about creating jobs, they are about creating wealth, for themselves. If not, the close to 300% increase in wealth that's gone to them in the past 3 decades would have us awash in jobs. Financial games and job creating in 3rd world countries where they can get labor for pennies on the dollar and there's no law that says they can't dump tons of mercury in rivers is their forte. Thanks to them we've gone from a manufacturing based economy that had decent paying jobs (mostly thanks to the evil unions which they've spent million killing off) to a consumer based economy where wages are close to minimum and you'll likely work less than full time so they can dodge benefits. Of course they're the ones who can buy the politicians to get their taxes cut 50% (or create dodges so it's considered a capital gain and pay a max of 15%). They also may fit a few chances for the taxpayers to pay them millions in cash, or build them plants or buildings (often bribed to they can skip taxes for decades) and have all the profits go to them and all of the risk go to the taxpayer. What's really sad is that the bulk of the right wingers are those that are being stepped on yet keep voting their way so maybe next time they can step on them with a new pair of shoes.

Humble Angela
41338
Points
Humble Angela 01/07/13 - 09:36 am
7
2
Revenue does NOT need to be
Unpublished

Revenue does NOT need to be raised if the only method the liberals can come up with to do that is to raise taxes. We do not have a revenue problem in this country. We have a spending problem, and that seems to be the one thing that Obama and his liberals WILL NOT put on the table. What they do is state what the projected spending increase will be.....then say they will increase spending less than that.....then tell the American people that they CUT spending......and his liberals followers eat it up and believe it.

rmwhitley
5526
Points
rmwhitley 01/07/13 - 09:51 am
1
0
pelosi says
Unpublished

"just go do it" bypass congress and the government will foot the bill. Just who does that moron think the government is? You and I are the government. It's time for these thug punks to take a long hike off of a short pier.

dichotomy
30666
Points
dichotomy 01/07/13 - 10:11 am
6
2
"That leaves virtually ZERO

"That leaves virtually ZERO to operate the rest of the entire US Government"

And that is perfectly OK because defense is about the only thing the federal government SHOULD be doing with our money. That and build a few roads and dams is all we need. That is all that was ever intended that we be taxed for. The problem is that the "rest of the government" is mostly give away programs and things the federal government should never have gotten involved with in the first place. Cut the rest of that crap out totally.

Bizkit
29232
Points
Bizkit 01/07/13 - 10:12 am
4
2
Well y'all fail to account

Well y'all fail to account the the US is no longer an industrial leader but a technological leader. There are jobs being created but fewer Americans have the skills for these jobs. The top 1% are those making over 350 K and that would be a lot of physicians and lawyers too that don't have a large number of employees. Studies have shown the wealth disparity is more to do with both spouses working and having degrees in marketable areas such a biotech, medicine, etc. It's a different economy with the internet too. The wealth disparity is logistical not some crazy conspiracy as progressives imply-talk about kool-aid.

nofanofobama
6750
Points
nofanofobama 01/07/13 - 10:25 am
6
2
TECH--all those spending you

TECH--all those spending you conviently state as DOD which is approx. 660 b of the overall budget.. does make spending go to 1.4trillion. so if we cut the defense budget in 1/2 . and cut pesonnel by 250k and lose 250k in defense industries that will still leave us about the same dollars under your reasoning....because all that unemployment etc...should be added to the .total expense for DOD.. RIGHT....WHICH AGAIN is one of the few constitutional spending the federal GOVT should be involved in..

nofanofobama
6750
Points
nofanofobama 01/07/13 - 10:44 am
4
2
tech.if the rich only

tech.if the rich only benefited from BUSH tax cuts ..why where dims ready to goe over the cliff for nothing...and revenue ...why with all that fraud, duplication and waste in the federal govt should we give them one penney more..yes defense has waste etc in it...so lets get our revenue across the board by being wise stewards of the money they get already ..then we can talk.

JohnRandolphHardisonCain
576
Points
JohnRandolphHardisonCain 01/07/13 - 12:27 pm
3
7
Cut 50% or more of the $1.2

Cut 50% or more of the $1.2 trillion that United States spends annually on the military and on off-budget secret "defense" operations. It is the military-industrial complex that is KILLING the U.S. economy. What is happening to the U.S. now is the long forewarned consequence of unsustainable military spending. This is exactly what happened to Soviet Union in the early 1990s when overspending on the military led to their collapse because they could not meet the basic needs of their domestic population.

grouse
1635
Points
grouse 01/07/13 - 12:33 pm
0
0
Ronald Reagan tripled the
Unpublished

Ronald Reagan tripled the national debt...

nofanofobama
6750
Points
nofanofobama 01/07/13 - 12:45 pm
6
2
jrhc-50 percent oF 1.2

jrhc-50 percent oF 1.2 trillion is 610 billion ...thats ABOUT THE DOD BUDGET NOW. ...the budget 614b for 2013...now if you know whats off budget you got a scoop... soviet union fell because of central planning of the economy..ie communist...someting you on the left are advocating now thru OBUMLER'S policies..

Humble Angela
41338
Points
Humble Angela 01/07/13 - 02:17 pm
5
3
I do appreciate when people
Unpublished

I do appreciate when people use buzzword terms like "military industrial complex." It lets me know that what follows will be nothing but opinionated rhetoric with very little facts to back it up. Thank-you sir for saving us the time. Next thing you know they will accuse people of "war crimes" without being able to name what law the people broke, or what governing body issued that law, or what gives that governing body authority over us. It happens quite frequently.

Humble Angela
41338
Points
Humble Angela 01/07/13 - 02:47 pm
4
3
"This is exactly what
Unpublished

"This is exactly what happened to Soviet Union in the early 1990s when overspending on the military led to their collapse because they could not meet the basic needs of their domestic population."

It is not the job of the government to take care of the basic needs of the domestic population. Perhaps you should actually read what the Constitution says once in a while. Military spending is one of the few things that the government IS supposed to spend our money on.

A population that depends on the government to provide its basic needs is destined to fail. Feel free to quote me on that.

Bantana
2071
Points
Bantana 01/07/13 - 04:23 pm
5
6
the collapse

Regardless of what some may think to be the sole responsibility of the federal government, it was indeed the wild military spending by the USSR, in response to Reagan's voodoo star Wars program, that lead to the eventual demise of the Soviet empire. I'm not sure what most folks think of the former WW II Supreme Allied Commander and two time Republican US President Eisenhower, but it was President Eisenhower that first warned of the threat to domestic tranquility posed by the military industrial complex with it's stranglehold on the US Treasury.

JohnRandolphHardisonCain
576
Points
JohnRandolphHardisonCain 01/07/13 - 05:03 pm
1
6
"$1.2 Trillion: The Real U.S.

"$1.2 Trillion: The Real U.S. National Security Budget No One Wants You to Know About"

http://www.alternet.org/story/150086/$1.2_trillion%3A_the_real_u.s._national_security_budget_no_one_wants_you_to_know_about

RMSHEFF
14062
Points
RMSHEFF 01/07/13 - 05:13 pm
3
1
There are many dollars to be

There are many dollars to be saved in the military budget but one thing is for sure you MUST spend enough to be strong and remain free. Weakness or perceived weakness leads to war. This is the first and most important job of the Federal Government and almost everything else should be left to the states. The second biggest threat to freedom is our national debt and we are in big trouble in this area.

RMSHEFF
14062
Points
RMSHEFF 01/07/13 - 05:30 pm
2
2
Bantana

Don't you wish we had Reagan back ! 7% growth in the economy instead of 1.3%.

JohnRandolphHardisonCain
576
Points
JohnRandolphHardisonCain 01/07/13 - 05:40 pm
2
4
Americans are not as free as

Americans are not as free as many suppose. The national security state is everywhere. Any American citizens can be deemed to be an enemy combatant or propagandist and held indefinitely without charge or killed without being charged or tried like Anwar al Awlaki and his 16 year old son. The endless war on terror is destroying the U.S. economy and is destroying Americans' Constitutional rights and civil liberties.

Humble Angela
41338
Points
Humble Angela 01/07/13 - 05:57 pm
4
2
Not fighting the war on
Unpublished

Not fighting the war on terror worked out so well for those in the World Trade Center. Someone seems be be channeling Neville Chamberlain. Not fighting worked out real well for him and his people too.

JohnRandolphHardisonCain
576
Points
JohnRandolphHardisonCain 01/07/13 - 06:55 pm
2
5
"It is now widely believed,

"It is now widely believed, even in US government circles, that the war on terror is counter-productive. Especially the wars in Iraq and Afghanistan, the torture in Abu Ghraib and the detentions in Guantanamo have produced a backlash and have increased rather than reduced the terror threat." I hasten to add the drone strikes have been particularly counterproductive. They do not make us safer or prosperous. United States is creating more enemies every day with its war on terror. The expansion of the war on terror from the Middle East and South Asia into the Arabian peninsula and large parts of Africa is proof of this. The war on terror is becoming more costly every day, and it is hurting the U.S. economy and imprimatur.

http://www.humanrightsdefence.org/human-rights-facts-the-war-on-terror.html

Darby
23605
Points
Darby 01/07/13 - 09:12 pm
5
1
And when will we wake up?.....

.....What is "When Hell freezes over, Alex?"

Someone once said, you can never underestimate the stupidity of the American voter....

Darby
23605
Points
Darby 01/07/13 - 09:23 pm
5
2
"United States is creating more enemies....

.....every day with its war on terror." I agree! Let's end the stupid war. All we have to do is surrender...... What's so difficult about that??? Can somebody point me in the direction of Mecca? Anybody got a slightly used Koran that I can buy on the cheap? My wife is gonna hate that burka but progress requires sacrifice. KnowwhatImean?

KSL
121961
Points
KSL 01/07/13 - 09:52 pm
3
2
Did somebody give JRHC a

Did somebody give JRHC a subscription?

KSL
121961
Points
KSL 01/07/13 - 10:02 pm
3
2
Knowing him, he should have

Knowing him, he should have an equal amount of animosity toward Obama. I have yet to see anything about Obama's
illegal wars with Obama mentioned of late. I wish I had a nickel for every time Bush's illegal wars were mentioned by him.

Humble Angela
41338
Points
Humble Angela 01/07/13 - 10:10 pm
1
2
This Cain guy is funny.
Unpublished

This Cain guy is funny. Simply make a statement (It is now widely believed, even in US government circles, that the war on terror is counter-productive. bla bla bla) ...back it up with one blog that concurs, and hope people believe you......WOW. The sad thing is that his use of eloquent wording ensures that there are people that will think he actually knows what he's talking about.

KSL
121961
Points
KSL 01/07/13 - 10:10 pm
0
2
I have a prayer rug, complete

I have a prayer rug, complete with slit so the idiots can know which way to lay it on the ground. I guess they were expected to know which way Mecca was, they just needed hints like a slit in one end in order to know which way to point the rug. WHAT DOES THAT SAY?

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