Free Markets, Free People

sharing the wealth


Obama: Doubling down on economic ignorance

Ever have one of those days?  My DSL has been down for 2 days, and I’m currently sitting in a public library trying to get some work done and sending out this post. 

And I was actually going to concentrate on work until I saw this article about something Obama said about the Buffett Rule:

President Barack Obama argued Sunday that his calls for wealthier Americans to pay a greater share of taxes aren’t about sharing the wealth, but about getting the American economy on a path for solid growth.

“That is not an argument about redistribution. That is an argument about growth,” Obama said in response to a reporter’s question at a news conference in Colombia. “In the history of the United States, we grow best when our growth is broad based.”

Broad based growth is not driven by heavily taxing one income class, Mr. Obama.  Nor is broad based growth driven by government spending (i.e. “redistribution” or “sharing the wealth”).

Broad based growth is driven by private enterprises having confidence in the economy and finding incentives to invest in both business and hiring.ISSdriv_101206.png

The “Buffet Rule” doesn’t do anything to provide those incentives or inspire that confidence.  In fact, it seems to be mostly a tax of desperation.  The numbers just don’t support the supposition that it will drive anything but more government spending, and, frankly, not much of that.

This is class warfare plain and simple.  It is also an attempt to offer up the rich as a panacea to the revenue problem blamed as the reason we’ve seen government borrow multi-trillions of dollars. 

There is no revenue problem.  There is a spending problem.  And taxing billionaires won’t solve that problem.  In fact it will likely exacerbate it. 

More importantly, the words Obama has spoken speak to two things: a) a deep seated ignorance of economics and b) a deep seated belief that government is the answer to all ills.

Both are dangerous and promise even more economic woes in our future. 

We can’t afford that.

~McQ

Twitter: @McQandO