Feb 2 2010

Yale Professor Jeffrey Garten: ‘ Obama’s economic blueprint is based on rosy assumptions and political impossibilities’

Posted by Jacquita in All Post
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Yale Professor Jeffrey Garten cuts right to the quick, and not only calls Obama’s budget a sham, but also says it may take China and others to force us into doing what we cannot do ourselves:

[...] Set aside the fact that it is based on overly optimistic growth assumptions and policy decisions that are only remotely feasible. For example, the underlying economic projections on which the budget is based presupposes a full recovery, even though nearly all experts believe high unemployment on the order of 9 percent to 10 percent is likely to remain for all of next year and maybe beyond. From such a rosy scenario stems unrealistic projections of tax revenues and reduction of various social-welfare subsidies. The budget also assumes that a good deal of the Bush tax cuts are repealed, which is hardly a certainty.

And not only is Obama’s budget a sham, so was candidate Obama’s promise not to “pay for the recovery” on the backs of anyone outside of “the rich,” as evidenced by this Reuters report: Middle class to get hit with “backdoor taxes”:

The Obama administration’s plan to cut more than $1 trillion from the deficit over the next decade relies heavily on so-called backdoor tax increases that will result in a bigger tax bill for middle-class families.

As the truth about Barack Obama’s agenda emerges, the more he looks like the ShamWow man.
Obama ShamWow.jpg Fortunately, it appears that Obama’s budget: has brought us to a tipping Point at which not even the media are buying what the president is selling.