All great truths begin as blasphemies.

- George Bernard Shaw

OMG, Obama is Killing the Economy!

Nothing new to those with an understanding of economics, but a good op-ed piece by Arthur Laffer worth the 5 minutes it takes to read it:

In 1981, Ronald Reaganówith bipartisan supportóbegan the first phase in a series of tax cuts passed under the Economic Recovery Tax Act (ERTA), whereby the bulk of the tax cuts didn't take effect until Jan. 1, 1983. Reagan's delayed tax cuts were the mirror image of President Barack Obama's delayed tax rate increases. For 1981 and 1982 people deferred so much economic activity that real GDP was basically flat (i.e., no growth), and the unemployment rate rose to well over 10%.

But at the tax boundary of Jan. 1, 1983 the economy took off like a rocket, with average real growth reaching 7.5% in 1983 and 5.5% in 1984. It has always amazed me how tax cuts don't work until they take effect. Mr. Obama's experience with deferred tax rate increases will be the reverse. The economy will collapse in 2011.
[Read]

It sucks to misery being inflicted upon all by so few, so they can "feel" like they care.

This is his final line: If you thought deficits and unemployment have been bad lately, you ain't seen nothing yet.

At least no one has to pretend they do not know what they are doing to the economy. Yes, it is by design.

posted at 20:00:02 on 06/07/10 by clearpolitics - Category: Economics - [Permalink]

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