Sunday, December 06, 2009

Obama's Ideas on Economics

There has never been a secret about Barack Obama's economic philosophy and intended policies. The following is gleaned from a column by Austin Hill.

Before being elected president, Obama campaigned on, and promised

- to raise taxes on oil companies to get even with them for their so-called “windfall profits;”
- to “reign in” executive salaries;
- to raise the capital gains tax rate;
- to “crack down” on both the insurance, and pharmaceutical industries;
- to raise income tax rates on high-income earners
- to make both healthcare, and a college education, “universal.”

Since becoming President, Barack Obama has,

- alleged that doctors sometimes perform unnecessary procedures merely for the sake of enhancing their salaries;
- sought greater ability for his administration to seize private banks;
- engaged in a public campaign of maligning the U.S. Chamber of Commerce ;
- forced Chrysler into a bankruptcy
that defied both bankruptcy law and accounting rules. (Discussed earlier here and here);
- ordered his “Executive Compensation Czar” to mandate anywhere from 50 to 90% salary cuts for executives of bailout-receiving companies

Obama has now been in office nearly a year. His policies (some of which he began influencing before taking office) have had time to begin taking effect. Regardless of what the previous administration might have gotten him into, he is the President, with a Democrat Congress to support and implement his policies.

Recently, the unemployment rate "fell" to 10%. (From 10.2%, it might be noted; economists say the change is statistically neglible. The unemplyment rate when Obama took office was 7.2%) Gold is at an all-time high against the dollar, indicating that inflation may be rearing its ugly head.

Draw your own conclusions. Do Obama's policies appear as though they are designed to inspire confidence in the economy? If you were a business owner, would you borrow money to expand your business, with hopes of increasing your income?

Unfortunately, Obama's policies may be effectively accomplishing the goals of his underlying philosophy -- an increased dependence on, and the resulting increase in the power of, the federal government.

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