Blog by Murph

Sharing perspectives on key social, economic and political issues of the day

Posts Tagged ‘Obama’

Economics 101…

Posted by blogbymurph on January 9, 2009

Despite the hype, this is not the first or even the most severe recession we’ve faced.  Reagan inherited a far more serious economic situation than Obama.  He devised a simple strategy which has resulted in over 25 years of economic prosperity.  Cut taxes and reduce government spending.  Reagan unleashed the power of the free market and left the creation of wealth and jobs to entrepreneurs, not government bureaucrats.

The Obama stimulus plan will increase the size and power of the federal government, adding more than 600,000 federal employees.  It will reward special interest groups (i.e. teachers unions) with more money for their support in the 2008 elections.  It will continue to bail out poorly managed institutions, be they private enterprise or state governments.  It will redistribute wealth by giving tax rebates to those who don’t even pay taxes.  It will also prolong the recession.

Edwin J. Feulner of the Heritage Foundation describes a true conservative approach to fixing the economy:  fix the tax code so it encourages greater economic growth by improving the long-term rewards for investing in job-creating enterprises.  Lowering tax rates on capital and labor is the best possible tonic for our economic ailments.

Feulner advocates the following:

  1. Make permanent the income tax rate reductions that passed in 2001 and 2003
  2. Reduce the corporate tax rate to at least 25 percent to enable American companies to compete with those overseas
  3. Reduce marginal income tax rates for at least five years to reassure working families that their taxes will be affordable in the years ahead
  4. Extend “bonus appreciation” for at least two more years to make new equipment more affordable and thus encourages businesses to upgrade, a policy that helps get the economy moving

Learn more about proven ways to fix the economy at the Heritage Foundation

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