[clue-talk] it's over!

[Collins Richey]

On Thu, Nov 6, 2008 at 2:43 PM, David Rudder
<david.rudder at reliableresponse.net> wrote:

> This is a conceit.  The idea that anyone who disagrees with you knows
> nothing about the economy.

Not what I said. See below.
>
> Here's an example of where I think the Republican ideals on economy fail.
>  McCain claims that lowering taxes will spur innovation*.
> Seriously, was the economy under Clinton bad?  Obama's policies are not far
> off from Clintons.  I remember a rolling economy that ended with real gains
> in productivity and per capita wealth, as well as raising the living
> standards of absolutely everyone.  Why is it that Republicans can't remember
> 10 years ago, and yet consistently claim that it's Democrats that don't
> understand the issues?
>

All of this is fine, but wiser people than I agree that 1. lower taxes
may not help much now that we're in the ditch and 2. raising taxes in
a time of severe recession sounds like a sure way to prolong the
recession and/or bring on a depression.

Things were relatively good under Clinton, but in spite of not because
of high taxes. Part of that is because his term of office didn't start
as far in the hole as we are now. I don't believe that either Obama or
McCain has the ability to pull us out (Jimmy Carter surely would have
loved to know that trick), but raising taxes will not help. I've
listened to too many entrepeneurs in the small to medium business
category that are struggling with the existing taxes and that are
convinced they will have to delay expansion and/or lay off existing
employees. Remember, Obama wants to uncap FICA contributions, so these
small businesses will get a double whammy - their own taxes go through
the roof and their share of FICA goes through the roof. I would love
to hear Warren Buffet discuss this.

And raising the corporate tax rate will certainly not encourage
corporations to hire more people. Indeed, it should make it nearly
impossible for Obama to encourage corporations to stay here rather
than moving off shore.

My personal opinion: I don't think the tax rates should be changed at
all right now. I'm convinced that the act of lowering the rates in the
first term of GWB had the effect of delaying the onset of recession
for several years, but that trick won't work now.

Also, I don't think Obama's math works (McCain's was probably wrong,
too). He can't possibly rip off enough from wealthier Americans to pay
for the bag of goodies that he's been promising to the disadvantaged,
and just wait until congress doubles or triples the goody bag.

I foresee two possibilities. If Obama is wise enough to realize that
this is not the right time for increasing entitlement programs and
works to implement programs that don't cripple the economy, he may
well be the hope that so many people sought, and he may be a two-term
president. OTOH, if he turns the lefty loons that control congress
loose to implement and expand on what he promised in his campaign,
then we are indeed screwed. Even Udall has now toned down the lefty
loon rhetoric. If Obama proposes programs that make sense, he may even
get the support of a lot of conservatives; he'll certainly get mine.

In essence: did he learn after long years association with terrorists,
black racists, and marxists that those ideas are wrong for America, or
did he take it all in and become the loony leftist that many believe
him to be. Time will tell.

Anyway, it's a historic moment: the first native Kenyan to become
president <grin>.

-- 
Collins Richey
     If you fill your heart with regrets of yesterday and the worries
     of tomorrow, you have no today to be thankful for.