Less Income, More Spending

Obama is reportedly considering delaying his rollback of the Bush tax cuts to the Upper Class of America. This apparently comes after great consideration of the possibility that raising taxes in an economic flu is not a good thing. Like Republicans have been saying since he announced this policy.

 

A few questions for his supporters: Will you be upset that he has failed to deliver on redistributing the wealth? Will you be upset at his continuing Bush’s policies of unfairness? Will you be upset that he is now showing preferential treatment to the Upper Class? Probably not, because most of you never cared about or understood the issues anyway.

 

But here’s the kicker: In that same article, Reuters reported that his “bold” economic stimulus package has raised to $300 billion. (I am sure this is not the final figure. It will be over a half-trillion before he takes office [Ed. Note: Obama announced a $700 billion bailout package hours after this article was published].) Where is he going to get this money? His proposed spending may sound good to some, but coupled with his announcement of a possible delay in tax hikes, it sounds increasingly more unrealistic. He couldn’t pay for his plan even with the extra income from taxing the rich, now what is he going to do? Borrow more money? China seems very willing to get us indebted to them further.

 

As always, we can count on the government to do things completely backward. You would NEVER hear a financial advisor tell anyone that spending more is a good way to get out of debt, especially if you just got a pay cut. But the government has created an economic enigma from which there is no prospect of reality. Until reality finally hits them.

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