Obama Pitches Economic Recovery Plans

On March 24, 2009, in Economy & Finance, by Trenton Hansen

For those keeping score, Mr. Obama is setting records now for prevaricating while on duty. It’s getting hard to track.

Mr. Obama made several claims in his press conference this evening that deserve a second look.

Mr. Obama is confident that his economic plan will encourage growth over the next 10 years or so. When challenged with figures from the Congressional Budget Office, he answered that his figures require a higher growth rate than that allowed by the CBO’s calculations. Supposedly this will help us feel better.

The fact is that Mr. Obama is making projections based upon expected growth. They are nothing more than projections, and very optimistic projections at that. It is impossible to know how the economy will behave in the next few years, but Mr. Obama is certain his plans to increase taxes on the rich will increase economic growth. Please understand my skepticism.

Increasing taxes on the richest part of our population while cutting taxes on the less-wealthy segments has never produced economic growth, and there is no evidence that will change now. Increasing taxes always has the net effect of driving tax revenues down, while slowing economic growth. But facts like these are lost on the Left, which holds as an expression of faith their ability to ignore historical data and trends which challenge their claims.

Mr. Obama also fired back at critics in the GOP who have called his budget proposals “irresponsible,” by claiming that he inherited a $1.3 trillion deficit from the previous Republican administration. What Mr. Obama, and the Left, would like the public to forget is that for the past two years of the “Republican” administration, Congress and the Senate have been in the hands of the Democrats. Does that absolve the Republicans? Not by a long way, but it puts the lie to Mr. Obama’s claim.

So, it seems Mr. Obama is keeping to politics-as-usual despite his promises to bring change to Washington.

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