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Friday, October 02, 2009

Economic Obamawinds (Read: Headwinds)

OK, so unemployment sucks and is getting worse. Is there reason for optimism? Let's review Obama/Pelosi policies - both already implemented and stated goals:

1) Higher minimum wage = record teen unemployment rate of 52% and soon-to-be record inner-city, low income unemployment.
2) A "stimulus plan" that under any other president would rightly be called a wasteful government spending bill.
3) Tax rates guaranteed to increase next year simply because Congress won't renew Bush's tax cuts. (Obviously they could allow certain brackets to retain their tax cuts but this is extremely doubtful as well given Democrats' view that "they need the money.")
4) Further proposed taxes on wealthier Americans who provide most of the investment dollars and small business jobs in the country.
5) A government health care plan that will cost trillions.
6) An energy tax (cap-and-trade) that will cost $2,000 per family immediately.
7) A takeover of the student loan industry and most of the mortgage industry, which adds to potential taxpayer risks down the road.
8) Higher interest rates which are a necessity when our deficits balloon (and I think we all know what happens to home prices when rates rise).

I am generally an optimist when it comes to the U.S. economy, but the country has gone so far off the tracks that it's hard to have that view unless the Democrats are badly defeated in the next couple of election cycles. (And yes, even if the GOP wins, they need to CUT spending, which I admit they haven't done since the 80s).