Sunday, December 5, 2010

Mr. President, Are You Listening?

From Investor's Business Daily:

"Please, Mr. President, you and your economic team of born-again Keynesian central planners have had your chance.

Remember having to fire Christina Romer, among others, for forecasting your $800 billion stimulus bill would keep the jobless rate below 8%? Now, private economists are forecasting a 10% rate for next year. For the first time, the U.S. is facing Euro-style structural unemployment. This is no time to be raising taxes.

Yet, in a sign that ideology still trumps reality, Romer's replacement carries on the discredited tax-and-spend torch.

White House chief economist Austan Goolsbee remains opposed to renewing tax cuts for individuals earning $200,000 a year or more, demagogued by House Democrats who last week voted against it as a "millionaires' tax cut" and even "billionaires' tax cut."

"Why borrow $700 billion to pay for tax cuts that are not going to go into the economy immediately?" Goolsbee protested even in the wake of the depressing jobs report.

In fact, studies show cuts in individual tax rates encourage new business startups and new job creation. They fueled hiring in last decade's recovery as well as in the '80s. And they didn't have to be "paid for." Federal receipts soared as the tax base expanded.

An unrepentant Obama insists the lopsided election was a referendum on the economy and not a repudiation of his policies. He says voters were "not thinking clearly" when they voted for change.

Who's not thinking clearly, Mr. President?"

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