Obamanomics is failing because this president does not have a clue how a business is run. His economic advisers likewise were all academics with little if any business experience. Orszag, Roemer, Bernstein, and Larry Summers have now jumped a sinking ship. Obama is left with Tim Geithner who did not know how to use Turbo Tax !!!!
To understand why Obamanomics is not working one has to revisit the past. We need to see what worked and what did not. This article explains : http://www.investors.com/NewsAndAnalysis/Article.aspx?id=585083&p=1 Excerpt :
Ninety years ago — in 1921 — federal income tax policies reached an absurdity that many people today seem to want to repeat. Those who believe in high taxes on "the rich" got their way. The tax rate on people in the top income bracket was 73% in 1921.
On the other hand, the rich also got their way: They didn't actually pay those taxes.
The number of people with taxable incomes of $300,000 a year and up — equivalent to far more than a million dollars in today's money — declined from more than a thousand people in 1916 to less than three hundred in 1921. Were the rich all going broke? More than four-fifths of the total taxable income earned by people making $300,000 a year and up vanished into thin air. So did the tax revenues that the government hoped to collect with high tax rates on the top incomes.
What happened was no mystery to Secretary of the Treasury Andrew Mellon. He pointed out that vast amounts of money that might have been invested in the economy were instead being invested in tax-exempt securities, such as municipal bonds.
Read the whole article. It explains why Obama's "tax the rich" plan will not create jobs. Obama's new Jobs Bill is more of the same. It has no chance of being passed. But then it was never his intention. He just needs to run on something. He cannot run on the failed stimulus, nor on the economy, nor on Obamacare. But he can and will run on the evil Republicans who won't pass his jobs bill.
Actually history shows that economies, particularly a free market capitalist economy like ours, have a way of correcting themselves faster if the government just gets out of the way. This article explains : http://www.investors.com/NewsAndAnalysis/Article/584781/201109141731/Best-Way-To-Aid-Economy-Now-Just-Do-Nothing.htm FDR did not understand that. Neither does Obama. His Jobs Bill is not about jobs. It is all about politics. http://www.investors.com/NewsAndAnalysis/Article/584704/201109131830/How-Do-Taxes-Generate-Jobs-.htm
To understand why Obamanomics is not working one has to revisit the past. We need to see what worked and what did not. This article explains : http://www.investors.com/NewsAndAnalysis/Article.aspx?id=585083&p=1 Excerpt :
Ninety years ago — in 1921 — federal income tax policies reached an absurdity that many people today seem to want to repeat. Those who believe in high taxes on "the rich" got their way. The tax rate on people in the top income bracket was 73% in 1921.
On the other hand, the rich also got their way: They didn't actually pay those taxes.
The number of people with taxable incomes of $300,000 a year and up — equivalent to far more than a million dollars in today's money — declined from more than a thousand people in 1916 to less than three hundred in 1921. Were the rich all going broke? More than four-fifths of the total taxable income earned by people making $300,000 a year and up vanished into thin air. So did the tax revenues that the government hoped to collect with high tax rates on the top incomes.
What happened was no mystery to Secretary of the Treasury Andrew Mellon. He pointed out that vast amounts of money that might have been invested in the economy were instead being invested in tax-exempt securities, such as municipal bonds.
Read the whole article. It explains why Obama's "tax the rich" plan will not create jobs. Obama's new Jobs Bill is more of the same. It has no chance of being passed. But then it was never his intention. He just needs to run on something. He cannot run on the failed stimulus, nor on the economy, nor on Obamacare. But he can and will run on the evil Republicans who won't pass his jobs bill.
Actually history shows that economies, particularly a free market capitalist economy like ours, have a way of correcting themselves faster if the government just gets out of the way. This article explains : http://www.investors.com/NewsAndAnalysis/Article/584781/201109141731/Best-Way-To-Aid-Economy-Now-Just-Do-Nothing.htm FDR did not understand that. Neither does Obama. His Jobs Bill is not about jobs. It is all about politics. http://www.investors.com/NewsAndAnalysis/Article/584704/201109131830/How-Do-Taxes-Generate-Jobs-.htm
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