In the Wall Street Journal today there is an opinion article written by Adam Lerrick, an economist at Carnegie Mellon University. This article states that Obama’s tax rebate that takes money from the top 5% and distributes it to everyone else will place the number of people that do not pay taxes (or even get more back than they pay in) will reach 50%. What happens when half of the voters of the US receive services but don’t pay any taxes to get them. They’ll vote for increasing taxes on those that do pay so that they’ll receive even more services (and checks?) from the government. This is so extremely dangerous.

This is the end result of Obama’s tax and economic policies. How long will it take for the top income earners in this country to start pulling back because of increased expenses caused by taxes? As a company’s expenses increase, in order to stay profitable, they have to either cut back on other expenses (ie employing people) or increase their prices. Price increases across the economy is inflation. That coupled with increased unemployment from companies cutting back and the Fed printing money like it’s going out of style to inflate us out of our national debts then we’re starting to see the misery index of Jimmy Carter’s administration rear its ugly head.

This country cannot afford moving towards the failed European policies that they are in turn moving away from to strengthen their economies. If we lose our economic strength while others, learning from their past mistakes, are gaining it, we may never catch up again.

Lerrick sums it up better than I ever could:

The economic tides will not stand still while Washington experiments with European-type social democracy, even though the dollar’s role as the global reserve currency will buy some time. Our trademark competitive advantage will be lost, and once lost, it will be hard to regain. There are too many emerging economies focused on prosperity and not redistribution for the U.S. to easily recapture its role of global economic leader.

Tomorrow’s children may come to question why their parents sold their birthright for a mess of “fairness” — whatever that will signify when jobs are scarce and American opportunity is no longer the envy of the world.

This entry was posted on October 22, 2008 at 9:33 am. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Posted in Politics by Josh Ferguson 1 Comment