The Discerning Texan

Larry Kudlow lowers the boom:

Let me be very clear on the economics of President Obama’s State of the Union speech and his budget.

He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.

That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.

Raising the marginal tax rate on successful earners, capital, dividends, and all the private funds is a function of Obama’s left-wing social vision, and a repudiation of his economic-recovery statements. Ditto for his sweeping government-planning-and-spending program, which will wind up raising federal outlays as a share of GDP to at least 30 percent, if not more, over the next 10 years.

This is nearly double the government-spending low-point reached during the late 1990s by the Gingrich Congress and the Clinton administration. While not quite as high as spending levels in Western Europe, we regrettably will be gaining on this statist-planning approach.

Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less.

This is nearly double the government-spending low-point reached during the late 1990s by the Gingrich Congress and the Clinton administration. While not quite as high as spending levels in Western Europe, we regrettably will be gaining on this statist-planning approach.

Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less.

This is nearly double the government-spending low-point reached during the late 1990s by the Gingrich Congress and the Clinton administration. While not quite as high as spending levels in Western Europe, we regrettably will be gaining on this statist-planning approach.

Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less.

When does the madness stop?

UPDATE: The Bankers aren't happy either.

UPDATE: A reader writes:

"And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less."

First, he thinks America is too powerful. That's why the islamonutjobs attacked us. In a lib's twisted view of reality, there is no individual choice, only a reaction to provocation. Saddam was free to walk away from Iraq but chose to stay and we know how that turned out. In the lib's mind, GWB invaded a 'sovereign nation for her oil' (more prosperity). In his mind, if he can stifle economic growth then he'll actually be making the nation 'safer' (by reducing envy).

Secondly, his cap and trade program will help him win euroweenie support that the evil Bush destroyed by his illegal war in Iraq. He will pander to anyone for support because appeasement is the lib's main (sole?) tactic for acquiring power and influence. Every word that spews forth from a lib's mouth is about taking from one (producer) and giving to another (non-producer).

You, being a rational person, already know this.:-)

Unfortunately Reason and Rationality seem to be the biggest casualty of the naked power grab by the Left, which has occurred with unprecedented and dizzying speed.

One wonders if America has seen her last days as the economic engine which (formerly) inspired Global prosperity.

The leftists are leveraging crisis to rig the game in every sense of the word, from the Census to stacking the courts, to unconstitutional representation for DC, to setting up unaccountable "Czars" in the White House who make the decisions and bypass the Cabinet (who is accountable to the Senate for confirmation). This is what Hillary tried to do under the radar for single payer health care in 1992, but Gingrich and the Republicans were there to call her on it.

In the debates, Obama chastised Bush for "doubling the deficit" over the 8 years he was President. What GALL for this man, what shameless crap when he has now just released a budget that would QUADRUPLE that deficit in just ONE year, including his success (and the help/betrayal of two reprehensible "Republicans") in sneaking past the American People and its Representatives a horrendous "Stimulus Bill" (= Trillion dollar payoff to his constituencies), a package that in ONE WEEK which BY ITSELF exceeds ALL of the war costs AND tax cuts combined over the 8 years of Bush.

And now this--a carbon cap and trade that will be a disaster with NO tangible benefit, other than to enrich the Gores of the world.

Another reader quotes the New York Times on this topic:

But the full costs and benefits of controlling greenhouse gas emissions remain unknown, and perhaps unknowable. While there is rough consensus on the science of global warming — with some notable and vocal objectors — there is less agreement on the economics of the problem and very little on the policy prescriptions to address it. And while a cap-and-trade approach bears substantial cost, it also brings a benefit whose value is incalculable — a steady decrease in emissions that scientists say will over time reduce the risk of climate catastrophe.

Mr. Obama’s budget estimates $645 billion in cap-and-trade revenue over the next 10 years that will largely be paid by oil, electric power and heavy industries that produce the majority of carbon dioxide and other gases blamed for the warming of the planet. Many of these costs are expected to be passed on to consumers.

REPEAT:
the full costs and benefits of controlling greenhouse gas emissions remain unknown, and perhaps unknowable ... these costs are expected to be passed on to consumers.

REPEAT:
the full costs and benefits of controlling greenhouse gas emissions remain unknown, and perhaps unknowable ... these costs are expected to be passed on to consumers.

REPEAT:
the full costs and benefits of controlling greenhouse gas emissions remain unknown, and perhaps unknowable ... these costs are expected to be passed on to consumers.

IT'S INSANE TO MANDATE $65 BILLION IN NEW COSTS WITH NO PROVABLE BENEFIT.

IN-F*****G-SANE.

But Insanity seems to be norm for this Administration. The "hero-worship" of a charismatic leader promising revolutionary change is nothing new, but this "virus" is exponentially more dangerous today. Today there are nukes everywhere and there are more coming from countries that HATE US. Today--as then--countries and their leaders are desperate to cling to power and are threatened by forces beyond their control. And when backed against such walls, leaders resort to desperate (and often violent) measures.

The Der Führer virus of the 1930's which led to the rise of charismatic "saviors" Hitler and Mussolini--has mutated into something far more dangerous and it has now gone "airborne". This mutation is highly contagious and deadly virus, whose victims already piling up. It strikes first those with no understanding of economics and history, but eventually it infects everyone. Like then the "leaders" used race-baiting hyperbole and serialized blame of their predecessors as scapegoats for all the ills of the world, thus infecting people who feel and emote, but who do not think. They promise justice and prosperity for all--if we will only hand them ALL the power. Anyone who knows history knows what inevitably comes after that happens.

Today's mutation is spreading rapidly with the help of a cheerleading media acting right out of something Joseph Goebbels said on 22 April 1929. Read this letter from the past and compare it to what the Olbermans and Matthews are saying today--or what the covers of TIME and Newsweek proclaim each week. NO DIFFERENCE. I HAVE READ ABOUT THIS STUFF, EXTENSIVELY. We are being led, not by a socialist (although his views are fueled by Marx) but by a National Socialist. Read the book, see for yourselves. Fascism is rearing its ugly head, and that fascism is not coming from the right.

The spread of this disease in the 30's led to the greatest catastrophe of the 20th century. But it is not nearly as dangerous as the virus spreading today in the name of "change", led by another smooth talking leader who can't seem to sabotage our way of life--and the engine that led to American prosperity and power in the 20th century--quickly enough...and to what end??

Like 1930's Germany and Italy, there is a crumbling economy and people are scared. Like then a charismatic leader stepped forward--a leader who mesmerized the masses based on emotions and rhetoric and what the people wanted to hear rather than the truth. And--as then--it is the kind of collective madness which brought their nations to eventual ruin; and the work to the brink of annihilation. Because it convinced the people to confer upon this megalomaniacal "leaders" ALL the power they asked for. Welcome to Germany's nightmare--but today it is ours.

Many still do not see or understand what is happening under their feet--especially the majority of Americans who are clueless about history and economics. But the devastating truth is becoming clear: this cat is out of the bag; people who still believe in our Constitution need to take our country back, and fast. Or it will be gone, history.

America, WAKE UP.