Economist Arthur B. Laffer, head of the Office of Management and Budget under President Ronald Reagan and founder and chairman of economic research and consulting firm Laffer Associates, says President Barack Obama’s proposed budget “is the perfect plan for catastrophe.”
“It shows no spending restraint and is raising tax rates,” Laffer told Newsmax.TV’s Kathleen Walter.
He said the budget blueprint puts a greater burden on people who work and gives more money to people who don’t.
Video — Laffer: Obama Budget Is Plan for Catastrophe
“If you tax people who work and pay people who don’t, do not be surprised if you find a lot of people not working,” Laffer says.
“If you tax rich people and give the money to poor people, you’re going to have lots and lots of poor people and no rich people,” he says.
(snippet)
If you know that tax rates are going to go up on January 1, 2011, you try to accelerate all the income you possibly can into 2010, which will make 2010 look a lot better than it should,” he points out. “Then, on January 1, 2011, the train goes off the track.”
The sheer size of unfunded liabilities is “awesome, just amazing,” Laffer says.
Civil service and military retirement and medical benefits, Medicare, Medicaid, Social Security, and that’s not even taking into account things like California and unfunded pensions.
The Obama administration needs to go through each of these and literally change the rules.
“You’ve got to go through all these programs meticulously and make sure you eliminate things that increase unfunded liabilities, which now exceed $100 trillion,” Laffer says. “Our GDP is only worth $14 trillion.”
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Miss me yet?
ReplyDeleteno we dont miss you, you caused all of this to happen over 8 miserable years
ReplyDeleteAnd if you think those EIGHT years were bad ---
ReplyDeleteWait 'til you get a Lil ole taste of the next
THREE ( this one don't count 'cause he just inherited it all )
You will LOVE them guaranteed !!!!!!!!!!!!!!!!!
This moron community organizer has virtually no clue ---- NONE
we dont miss 911, which you ignored and let your criminal thug cheney make norad stand down, we loved that guaranteed! Your drunk Moron, cokehead w had no clue ever and never will, the bush crime family is the most corrupt in our history GUARANTEED!
ReplyDeleteWhen are you people going to realize evrything is controled by a few men. Obama bush are just puppets
ReplyDeleteThough I hate Bush junior I must say most of this crap now is alllll OBMAMA'S baby...He could hav shut down things...Pulled out of places...Fired contractor's...changed the tax codes...Winded down the useless missle programs and weapons systems that DON'T work...Shut down NASA...Fire or downsize departments and give us back our rights...But NOOOOO!...He hired crooked morons and YES he is responsible for the evil HIS people do.
ReplyDeleteHate both parties and even with lil demonstrations and all the country is technically sunk...Not being a pessamist being a realist...We are treading on unknown areas in modern times.
We are the largest, strongest, weakest super power EVER...Not to get all religious but in the book of Daniel it speaks of a kingdom made of clay and iron...That's a perfect description of us...SOOO strong but soooo weak...Mixed together and actually quite easy to collapse.
Weird.
Sad truth is that we should allow ourselves to go into the delveraging depression (really should have 24 months ago) and let all the chips fall. Fed and State govs should cut back spending to no deficit levels, but out all waste and fraud, and let the system reset with all new banks, no derivatives, and gold at 10K an oz. I fear we are going these places anyway, but with an extra $10 trillion of impossible debt thrown away trying to avoid the unavoidable.
ReplyDeleteHEH
ReplyDeleteWe don't need no education!
We don't need no thought control!
Hey! Policemen! Leave those Serf's alone!
Obama wanted the job; he fought for it for two years. Now all I hear is "I inherited a huge mess" waaaa waaaa. It will take more than eight years to change this you know. When are you Bush haters going to wake up? Obama has never run any thing except his mouth. Snap out of it.
ReplyDeleteBS to the tax increases. Obama is letting the Bush tax cuts expire. If Obama raises taxes afterwards, then you can say it's a tax increase. If the ten billionaires in the US: Gates, Buffet, Ellison, the Walton Family, and Dell--are not creating small businesses, then their taxes can be raised to confiscatory rates with no harm to small business creation.
ReplyDeleteUmm, Umm, Umm, Barack Hussein Obama
ReplyDeleteUmm, Umm, Umm, Barack Hussein Obama
The sooner this fool ends it the sooner we grown ups can put it back together again.
w loser bush mmm mmm mmm let 911 happen on his watch mmm mmm mmm mmm mmm amerika just loves it
ReplyDeleteBush never ran anything? He was President for eight years you retard. Now he's retired on several hundred acres. He also has a Mexican staff to cook and pick up the horse shit. What are your accomplishments? You just sit around smelling your own farts.
ReplyDeleteThis country has NOT had a president that stood up for the people, country and constitution since Calvin Coolidge.
ReplyDeleteYeah that's right Calvin Coolidge.
The rest of them have been puppets and pawns so'd this one
11:57 You are very knowledgeable. What you say is so right and would work. Except the oligarches wont let it
ReplyDeleteWell, the "good" news here is that Art Laffer was one of the people who thought people like Peter Schiff were insane when they were making their recession/housing crash calls back in like '05...
ReplyDeleteSo, hopefully he's wrong again...and the situation is really not that bleak.
Then again, those other people, like Peter Schiff, agree with him this time...
You are correct 11:55 a.m. It is startling how few citizens have the slightest notion of basic economic theory. I am reading alot of blustering rhetoric, profanity, and blaming for policy mismanagement of the financial sector that began 25 years prior to this crisis. Apparently most readers are not aware that every fiat currency system eventually ends in collapse. Keep your most trusted allies close at hand, this is not the time for new enemies. Best of wishes to you my brothers.
ReplyDeleteThank you, 5:20.
ReplyDeleteFor the love of god, the bickering is pointless.
This mess is not Bush's fault...and it is obviously not Obama's fault. If you want to blame the federal government in general, fine...
The bottom line is that we, the United States as a whole, have been living WAY beyond our means for a long time. The events of the last decade or so just accelerated what was bound to happen anyway...
What should have every single person, regardless of politics, very, very worried right now is that NOTHING has changed. We are doing the exact same $#!^ right now that got us into this mess - no I'm not blaming Obama...but the fact remains that nothing has changed at all.
All we are seeing right now, from about 99% of our politicians, is yet another attempt to kick the can down the road by ignoring the simple mathematical fact that we simply can not pay for all of "this" - e.g., bailouts, unfunded liabilities, etc.
The problem is that the road is only so long...and there is a cliff rapidly approaching.
Yes, you are absolutely correct. Again, I state, keep your allies close at hand, make no new enemies, and prepare for the inevitable conclusion to this tragedy.
ReplyDeleteDo the names like Rothchild,Bloomberg,Goldman,wolfowitz,B Frank,A Sharon,Schumer,Rosenberg etc,etc ring a bell?
ReplyDeleteWell these guys are tiny number of the tribe,who are the Decendence that were responsible for the Weimar Rebublic collapse and are now wrecking the US, and they ultimately gave the world the backlash known as Hitler.It is this Bedouin tribe that is ruling here,not Obama.
Laffer is a f*cking monkey:
ReplyDeleteShameful: Art Laffer
This economy is driven by good economic policy, by good monetary policy, by good trade policy, and it's working beatifully."
Art Laffer, Part 2
In the video he says you basically cannot forecast the economy beyond 9 months into the future.