Aggregator • Hyscience • ID=78377
If you want to know why Obamanomics hasn't worked and why it continues to produce a stagnant economy, you need only look to what's happened in Europe where its worst economies (Spain, the United Kingdom, France, Greece, and Italy) have had tiny or non-existent spending cuts which were always overwhelmed by large counterproductive tax increases. Then take note that Barack Obama's plan for the United States is identical to the new Socialist government's plan for France: higher spending and taxes now, spending cuts later.
Conn Carroll writes at The Morning Examiner:
Higher taxes now, spending cuts later. That was the "balanced approach" President Obama and the Democrats tried to force Republicans to accept last August. While Speaker John Boehner, R-Ohio, wanted to make the deal, House conservatives forced him to say 'no.' They knew from President Reagan's experience in the 1980s that the tax hikes would come (sure as death), but the spending cuts never would.
ory has been playing out in Europe. For months we've heard liberal commentators like The New York Times Paul Krugman and Clinton Labor Secretary Robert Reich decry Europe's "austerity" programs. Yesterday, Krugman wrote, "claims that slashing government spending would somehow encourage consumers and businesses to spend more have been overwhelmingly refuted by the experience of the past two years. So spending cuts in a depressed economy just make the depression deeper."
Problem is, Europe has not been cutting spending. Mercatus Center Senior Fellow Veronique de Rugy has crunched the numbers and found that among some of Europe's worst economies (Spain, the United Kingdom, France, Greece, and Italy) government spending cuts have either been tiny or non-existent. Greece and Spain did cut slightly in 2009 through 2011, but both countries are still spending more today than they were in 2008. Italy did reduce spending in 2009 and 2010, but increased spending in 2011. Meanwhile France and the United Kingdom have yet to cut spending at all.
The most important point to keep in mind is that whenever cuts took place, they were always overwhelmed by large counterproductive tax increases. Unfortunately, that point is often overlooked. This approach to austerity -- some spending cuts with large tax increases -- is what President Obama has called the "balanced approach."Indeed, The Washington Post reports that Obama's message to France in the wake of their last election has been, "more spending and looser monetary policy would help promote recovery in the short term and could be reined in later." Complete silence from Obama on the new French government's plans to raise taxes on the rich to 75 percent.
Obama's plan for the United States is identical to the new Socialist government's plan for France: higher spending and taxes now, spending cuts later. Republicans should offer Americans a different path this November.In other words, our socialist president now has a fellow socialist running France ... and both countries are now headed on the very same path ... toward epic failure.
Related video: Fox News Special Report Panel on the French Elections (Steve Hayes, with Charles Lane and Charles Krauthammer, last night):
Show Me the 'Savage' Spending Cuts in Europe, Please (Data shows 'Austerity' in Europe never happened - all they actually did was increase spending ... and taxes)
NYT: Hollande's Socialism Fits Obama Better (Socialist François Hollande's economic policy beliefs are closely aligned with Barack Obama's).