President Obama seems to believe that money spent by government winds up benefiting the middle-class and the poor. But the more government taxes private sector job creators, the fewer resources they have to employ middle-class and poor people. More government bureaucrats and union-controlled projects will not be good for the long term growth of the economy.
The President’s proposed American Jobs Act offers an excellent case study in Trickle-Down Obamanomics. This bill would hikes taxes on individuals making more than $200,000 a year and families making more than $250,000 a year, and impose other tax hikes totaling $450 billion over 10 years. The government would then plow those funds into a $10 billion infrastructure slush fund, and spend $50 billion on union-wage road projects, $30 billion on “greening” schools, and $35 billion on teachers/first responders.
It’s the same philosophy employed throughout the President’s term. What has it accomplished? Unemployment was 7.8% when he entered the Oval Office; it’s 7.8% now. More than 22 million Americans are unemployed or under-employed. The percentage of able-bodied Americans participating in the job market is at the lowest level in the 30 years.
What’s at the highest level ever is the national debt. Trickle-down Obamanomics has run up deficits in excess of $1 trillion annually.
The left mocks Romney’s statement that he would reduce federal funding the Corporation for Public Broadcasting, which totaled approximately $1.7 billion over the last four years. It is hard to imagine how the United States will ever balance the budget if even Big Bird—emblem the fabulously successful and lucrative Children’s Television Workshop—is seen as a sacred cow.
Instead, Washington should chart a tested and true path. Cut taxes; slash government spending, and stop borrowing massive amounts from our kids and grand-kids. The only way to transform our nation back into what Ronald Reagan called that “shining city upon the hill” is to follow the Reagan Revolution pathway of reduced regulations, lower tax rates and limits to government spending.