Obama 2013 Recession...Yup

Discussion in 'Politics' started by Lumpy 1, Nov 25, 2012.

  1. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    But..don't expect Obama to take the blame or Democrats to stop making excuses...mmkay

    --------------------------:party:

    There are at least three reasons why an Obama victory will almost surely lead to a recession in 2013:

    (1) Obama’s version of the “Wealth Tax.” As part of his reelection ploy, FDR proposed what he dubbed a “Wealth Tax.” As he explained to Congress in June 1935, “Our revenue laws have operated in many ways to the unfair advantage of the few, and they have done little to prevent the unjust concentration of wealth and economic power. … Social unrest and a deepening sense of unfairness are dangers to our national life which we must minimize by rigorous methods.” [See here.]

    Similarly, Obama wants to impose a number of new taxes on those he considers wealthy—individuals making more than $200,000 and families making more than $250,000. Take the dividends tax, for example, which currently sits at 15 percent. The president’s proposal will nearly triple that tax, to 43.4 percent, at a time when the Fed’s low-interest rate policy has driven investors toward dividend-paying stocks in the hope of getting some return on their money. Think a tripling of the dividend tax, and a 33 percent increase of the capital gains tax from 15 percent to 20 percent, just might have detrimental impact on investing?

    (2) The certainty of uncertainty. The uncertainties created by the explosion of regulations, taxes and mandates (e.g., most employers must provide health insurance) will encourage businesses to remain hunkered down and sitting on their cash, unsure what challenges and costs they face when hiring and expanding.

    But it’s not because employers are greedy or evil, which was the constant message emerging from speakers at the Democratic convention. They are doing exactly what most families do in times of uncertainty. If you know your job is shaky, or that you may see your income decline, you will likely postpone major or unnecessary purchases until the situation is clearer or more stable. Obama’s policies have created massive uncertainties among employers—and employees, for that matter—who will sit on their hands, and cash, a little longer if he is reelected.


    And note that this uncertainty discussion doesn’t include the additional uncertainty created by other factors, such as what Congress will do to address the government’s debt limit coming around year’s end. It was this very battle that tanked the stock market in August of 2011 and led to a downgrading of the country’s credit rating. Could the economy stand a similar downturn without turning negative?


    The Coming 'Obama Recession' Of 2013 - Forbes
     
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  2. elvis
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    elvis BANNED Supporting Member

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    Another guarantee.....
     
  3. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    .. and a little more...


    3) The government-spending binge. FDR ran up government spending from 6 percent to 9 percent of the economy, while Obama increased it from about 20 percent of GDP under George W. Bush to nearly 25 percent. [See this graph.]

    To sustain that level of spending the government must dramatically increase the tax burden and/or borrow like a drunken liberal. The president has done both—$5 trillion worth of new debt—and will do a lot more. Both actions suck capital from markets and the private sector that is needed to boost real economic growth.

    But that isn’t the worst of it. Obama says he wants to “invest” in the U.S., by which he means confiscating trillions of dollars from the private sector to squander on “investments” the administration thinks are beneficial—especially to his political future. Economists refer to this practice as “mal-investment,” because the government handouts are based on political motives rather than the profit motive. It is a sign of the unusual times we live in when so many Americans think that buying votes with their own money is morally and economically superior to making a buck the old-fashioned way—by earning it.

    FDR undertook all three approaches and it resulted in the Roosevelt recession of 1937. If Obama is reelected and follows the same path, which is what he promises to do, it will lead to the Obama recession of 2013.

    Would a Mitt Romney victory in November avoid a recession? It’s hard to say, since too much economic damage may have already been done. In fact, we could slip back into recession before inauguration day.

    But if a President-elect Romney were to make it clear that he would cut government spending immediately, not raise taxes and curb or eliminate the Obama regulation-palooza, companies would begin to invest the trillions of dollars they are currently holding—because that’s what companies do when it makes business sense to do so.

    While it might not be enough to save us from a recession, it would be minor compared to the economic hit we’ll take if a reelected Obama is able to get his agenda passed.


    The Coming 'Obama Recession' Of 2013 - Forbes
     
  4. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    :gives:
     
  5. elvis
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    elvis BANNED Supporting Member

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    Apparently you.
     
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  6. francoHFW
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    francoHFW Platinum Member

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    After 30 years of Voodoo and a Pub depression, the problem is good jobs and DEMAND, hardly the bloated rich. A jobs act in the short run, and spending on education and training would do wonders.

    FCS, we're talking about a 4% rise here...
     
  7. Lumpy 1
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    Lumpy 1 Diamond Member Supporting Member

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    Democrats are like excuse machines.. will they ever man up...?
     
  8. francoHFW
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    francoHFW Platinum Member

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    Talking points and insults ONLY. see sig pp1 for all voodoo has done for us.

    The rich are bloated, the raisng taxes and crushing regulation are total BS, a recession would be due to more mindless Pub obstruction, so I don't see it now. That jig is UP.
     
    Last edited: Nov 25, 2012
  9. Avorysuds
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    Avorysuds Gold Member

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    I want a number form you now, how much in revenues would taxing the rich bring in, then how much of that is used to pay down the annual deficit. Until you do that all you are is a talking point.
     
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    Last edited: Nov 25, 2012
  10. Rozman
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    Rozman Gold Member Supporting Member

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    What a shock...more spending..
    Wasn't the stimulus the way to go...
    Now we just call it something else and that makes it all better.
    Let's spend more money we don't have.
     

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