Why Can't Obama Fix the Economy?

Question

History has shown that when the fed lowers the corporate tax rate and also lowers the capital gains tax, the economy takes off. Why, because it dramatically increases the GNP, thereby actually creating MORE TAX REVENUE!!

Obama will not only not do those things, but is stymieing business by creating a massive increase in the national debt which negatively effects business' ability to hire and grow.

Any economists out there?

Answer 1

That is the Laffer curve which I agree does work but you still are thinking like a Keynesian. Unless you plan to cut the size and scale of government then your plan is no different than the Democrats. You're just shifting the numbers from one column to another but the end result is the same.

Answer 2

Economists also note that stimulus programs which are increased government spending also stimulate the economy due to the multiplier effect which is that for every 1 dollar of government money spent, there is an x amount in output in the economy. So if they spend a certain amount of money, a sum larger than that will be created.



Think of this, if the government cut off all unemployment benefits and services, the economic downturn would worsen since people would get poorer and further deflate the country. There needs to be a steady income for these none-earners. If they make nothing, they will resort to crime and other delinquent activities.



That being said, I agree with you that corporate taxes should be lowered for a period of time to stimulate the economy.



An all of the above approach is needed.



Also, do you really think a democratic senate of 59 Democrats is gonna lower corporate taxes. No way!

Answer 3

I don't believe it! Someone who still thinks Reagan was right! I thought all you supply-side guys decamped when the recession of the late 80s hit.



Anyway, you may have noticed that Obama just lowered taxes on individuals and small business owners. The current corporate tax structure hasn't changed appreciably since the 1950s. Most corporations pay a tiny fraction of their income compared to what you and I pay. Take Exxon-Mobile, for example. 2008 profit: $45 billion. Federal taxes paid: Zero. Not a dime.



Please explain how you are going to cut that.



Complaining about answers that include facts makes you look bad.

Answer 4

Ha ha, you’re funny.

In stead of asking “Why can’t Obama fix the economy?” shouldn’t you be asking

“Why did Bush destroy our economy after Bill Clinton did such an EXCELLENT job

leaving to Bush a superbly healthy economy?”



Yeah I know you forgot about that.



On the contrary, history has shown that when the capital gains tax is lowered

[if you even know what that means] it does not cause the rich (who are the

primary beneficiaries of such legislation) to spend more.



There is also no reason for “the economy to take off” if the fed lowers the

corporate tax rate. You are using terminology that somebody fed you

without your understanding it.



You have much to learn Jimbo.

Don’t believe all the cr@p that your biased elders feed you.

You don’t want to keep sounding foolish do you?

Answer 5

Here's a graph for you to look at and feel really, really stupid (assuming you can count). The part from November 2004 until January 2009 is the time George W Bush was "in charge", from then until now is the period when Obama was at the helm;



http://finance.yahoo.com/echarts?s=^DJI+Interactive#chart2:symbol=^dji;range=20040423,20100423;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined



Under Mr. Bush, the Dow Jones Industrial Index went from 10,860 in 2001 when he was elected to 8,279 in Jan 2009 when his Presidency ended, an impressive decline of 23.7% Under Obama, it has gone from 8,279 to 11,204.28 as of close of business, a gain of 2,925.28 points, or 35.33%



There is no shame in your not being able to count, but there IS shame in not seeking help.....I do wish you well, as Bruce Williams might say!



Silly goose!

Answer 6

"We the human beings" and Congress have the "ability" to handle each and every project. study the US shape. For some reason anybody is reluctant to savor their rights as electorate of a representative government. Senator Obama needs to electrify upon "We the human beings" the accountability of conserving elected officers in charge. The ineptitude of the US homestead of Representatives and US Senate is getting used to the earnings of the financial industry. human beings on capital hill are too egotistical and vane to admit they're clueless concerning to the disappearing "Billions". The administration and "3 Blind Mice" Cox, Bernanke, and Paulson seem to be the only human beings in Washington that have an concept of what they're "Stealing" or "Lieing approximately". those adult men understand that maximum folk have not have been given any concept of a "Billion"money. how a lot of human beings could desire to count huge type their own "Billion" if it have been on the table in front of them?

Answer 7

Then why did the economy take off when Reagan signed a corporate tax bill. A $420 billion increase.

Answer 8

ya he has cut income taxes but enacted 25 other new ones on other things?? it's like giving you one dollar with one hand and robbing your pocket of 25 dollars with the other hand!! his spending is the highest in history!! obamacare the joke of a health care was really good?? now after it is law they are finding mistakes in the numbers? instead of saving people money it WILL COST more??you want the real truth about the great health care read what a retired constitution law teacher and lawyer said after he read it!! it's just a plan to bankrupt ALL insurances so the government can control health care and control ALL the people! soon everything will be government owned and ruined!! and our freedoms of choice gone!!! please read= micheal connelly/obamacare... see for yourself?? it's on the internet for all to read!!!

Answer 9

It's raining here today. If Obama can't even control the weather correctly, how can we expect him to fix the economy? He needs to be impeached for presiding over less than pleasant weather.

Answer 10

Obama, Congress and the government in general are the CAUSE of the recession. They have no clue how to fix anything, and for them to claim otherwise would be to admit their own irrelevancy.

Answer 11

obama and the liberals are out to destroy the economy so big government will take over all aspects of our life they want to redistribute the wealth give to the lazy bums that want work and take from the ones that do but he is running in to a problem we cant find jobs no body eats

Answer 12

What he is doing worked when he was in the classroom as an undergrad. It should work in the real world. What's wrong?

He has never run a cash register. GOT IT? Never made a pay roll. GOT IT? Never been without money or hungry. GOT IT?

He does not know what he is doing and has communist as advisors.

Answer 13

Really?



"Despite recent statements by the President [Bush], Vice President, and certain Congressional leaders that tax cuts pay for themselves, economists from across the political spectrum — including the Administration’s current and former chief economists — reject this notion. Further, the Treasury Department’s own analysis of the President’s tax cuts confirms common sense and conventional wisdom; it concludes that, even under favorable assumptions, the tax cuts would generate added growth that would offset no more than 10 percent of their long-term costs."



http://www.cbpp.org/cms/?fa=view&id=165





The Dow is UP 33% since Obama took office.



Retailers reported their strongest monthly sales growth in a decade, with gains in virtually every category of merchandise and every type of store. They posted a 9.1 percent sales increase, their strongest monthly sales growth in a decade.



Employers added 162,000 jobs last month, and employment numbers in the previous two months were revised upward.



http://26.media.tumblr.com/tumblr_kxfgdhngiP1qz4udmo1_500.jpg



IHS Global Insight says the economy has about 1.7 million more jobs today than it would have had without the stimulus.



GDP growth is a POSITIVE 5.6% (the highest growth in 6 years), after falling to NEGATIVE 6.4% under Bush.



The Conference Board Index of Leading Economic Indicators is up for the TWELFTH consecutive month. The Index increased 1.4 percent in March, following a 0.4 percent gain in February, and a 0.6 percent rise in January. The U.S. LEI is now at its highest level.



The Conference Board Consumer Confidence Index, which had decreased in February, rebounded in March. The Index now stands at 52.5 (1985=100), up from 46.4 in February. The Present Situation Index increased to 26.0 from 21.7. The Expectations Index improved to 70.2 from 62.9 last month.



The manufacturing sector expanded in March at its strongest pace since July 2004. The Institute for Supply Management, a trade group of purchasing executives, said that its gauge of industrial companies rose to 59.6 in March from 56.5 in February. It is the EIGHTH straight month of expansion.



The Institute for Supply Management’s non-manufacturing barometer rose to 55.4 in March, up from 53 in February, exceeding expectations. Much of the momentum came from a surge in new orders and business activity. It was the highest reading for the survey since May 2006. Exports also rose significantly.

Answer 14

In his opinion he is fixing it. The Progressive approach is to control everything and spread the wealth. His plan is working so far.

Answer 15

barack insane 0bama is "fixing" America with a wrecking ball !!

Just as the progressive liberals have been doing for 100 years.

Answer 16

I dunno, but I'm a little worried.