Is President Obama Pushing Us Into a Double Dip Recession? History Says YES
President Obama’s approval ratings among American voters have been dropping to historic lows as he heads into the third year of his first, and only term, as President of The United States. Electoral history backs up that last statement, in the fact that no incumbent President has ever been reelected with our current stubbornly high unemployment rate hovering over 9%. Throw in the fact that the dollar is weak, gasoline is still about double what it was when he took office, and the fact that many economists point to the total unemployment as to being more like 17%, not the 9% that the new Liberal math is using to get it at that level, and we end up with 63% of Americans saying they do not like the direction the country is going under Barack Obama. That points to Obama as being what is simply know as a “One and done President.”
Does Barack Obama know he is a one and done president? He must know how disgusted most of America is in the hope and change slogan that has now become simply, no hope and change for the worse, when we see those sharply tanking approval ratings. Since Obama knows he will be defeated in 2012, relegated to the dustbin of being known as the worst President in modern American history, many folks believe he is setting up the next Republican President administration to fail by damaging our economy immensely. History also shows this to be a pattern of past Presidents. If you can create an atmosphere of long-term instability in our economy, it could lead Americans to eventually voting for Hope and Change 2.0. in 2016, just like they did in 2006 without any clear definition of just what kind of trans-formative change candidate Obama was talking about.
Barack Obama and his Liberal Party USA group of advisers, czars and high-powered appointees have been shown to try to replicate the failed Socialistic policies of past administrations of the lefto-sphere numerous times since Obama was elected. They have also used the gimmickry and manipulation of the masses techniques of past Presidents Carter, Wilson, Hoover, FDR, and Clinton often, ( while ignoring Truman’s economy recovery facts) in trying to make their case for their Liberal wealth redistribution to buy votes campaigns. Jimmy Carter, whom is widely known as the worst POTUS in modern history, along with Bill Clinton who is infamous for disgracing our White House with his Monica Lewinski down-under policies, are both still heavily involved in pimping the Barack Obama tax hike agenda of today. Do these Liberal elitists ever retire? It says a lot about the current administration in their willingness to ignore Carter and Clinton’s incompetence and perversions, while trying to prop them up as respected people that Americans should listen to today.
The bottom line is that, true to their Liberal ideology, Barack Obama and company are trying to tax us into a double-dip recession. History proves it, and the current stagnant economy due to the failed policies of the past 3 years, coupled with the numerous stealth tax increases hidden in the Obama agenda such as those being found in Obama-care, will prove deadly to our economy in the near future. Tax increases and massive over-regulation are piling up in all sectors of our economy, with many of them being back-loaded until…. 2013, right after Obama is kicked out of office. Coincidence? Not likely. Fake Democrats have a well-documented history of implementing stealth policies in able to regain power in future elections by crippling the economy through failed Keynesian economic policies. Then, they sit back and start screaming that it is all the conservative policies that hurt working Americans and everyone should get out and vote for Democrats. This is the proven cycle of the two-party political system, and people fall for it time and time again while ignoring the history of American economics.
Today, on my local news I saw that Bill Clinton is telling Americans and Congress to pass Obama’s current massive tax hikes plan(s) RIGHT AWAY. The doomed-to-fail American Jobs Act, the newly announced Buffet Rule, and the hidden agenda of letting the Bush tax cuts expire are all in fact, tax hikes on every man, woman and child in America. ( Except for most of the Liberal base though, as they, like Buffett and Obama-bedpal G. E. , very rarely actually pay taxes) That sent red flags dancing across my vision immediately. Bill Clinton’s fallacy about just what happened when he was President has been very well-exposed as to containing a very heavy dose of leftist propaganda in saying our economy skyrocketed during the Clinton years simply because he raised taxes on the rich. To be perfectly clear, history points to raising taxes as prohibitive to growing our economy time and time again. The current Liberal administration seems very good at using past history to dig out the trickery and manipulation tactics that have been used before to fool the American public into going along with tax increases that, in fact, will lead us into a double-dip recession. Is Barack Obama pushing us into a double dip recession on purpose? History says he is doing just that, when we look at how past tax hikes have resulted in severe downturns in our economy throughout our presidential history.
In an article from The Heritage Foundation titled, Hoover, FDR and Clinton Tax Increases: A Brief Historical Lesson, we see indisputable facts that prove to us that raising taxes during a recession only leads us into a double-dip recession or even a depression. These historic examples also show us to be the exact same tactics that the Obama administration is now using as we head in 2012 and the Presidential elections.
Lets start with President Herbert Hoover back in the troubled economic times of the early 1930’s.:
” After the 1929 stock market crash, the Smoot-Hawley tariff of 1930 raised import prices and more importantly threw a bucket of cold water on global trade flows, helping send the economy into deep depression. The economy had very little chance to recover. Along with gross and ongoing monetary policy mismanagement, President Hoover raised taxes in 1932. The consequences were devastating. As Alan Reynolds points out: ‘ President Herbert Hoover asked for a temporary tax increase…in June 1932, raising the top income tax rate from 25% to 63% and quadrupling the lowest tax rate from 1.1% to 4%. That didn’t help confidence or the Treasury. Revenue from the individual income tax dropped from $834 million in 1931 to $427 million in 1932 and $353 million in 1933′ ” ( emphasis mine)
Note the highlighted lines there. Those were some whopping tax increases, and if Barack Obama and the Liberals in Congress get their way we will see the exact same thing when we look at the big picture and actually add all of the Obama tax increases already on the books to the new ones he is proposing today. Hoover’s huge tax increases also point us towards the failed New Deal Keynesian-style spending that is always at the root of Progressive ( posing as democratic) policy. It led directly to a double-dip recession that really hurt the very working class people Democrats at the time purported to represent as we see here:
This caused a “double-dip” recession, sky-rocketing the unemployment rate to well above 20 percent. After 1933, the economy showed glimmers of recovery: unemployment dropped from near 25 percent in 1934 to under 15 percent in 1937, and economic activity was picking up. Contrary to Keynesian conventional wisdom, however, the recovery didn’t come as a result of New Deal spending. Christina Romer, former chief economic advisor to President Obama, makes clear: “Fiscal policy played a relatively small role in stimulating recovery in the United States.” Rather, the initial recovery happened largely because of monetary expansion, the “money supply increased nearly 42 percent between 1933 and 1937,” according to Ms. Romer. ( the monetary expansion link there gives us a very detailed look at the Great Depression and it’s causes)
Five years later FDR repeated the same mistake as Hoover, as we see here:
Unfortunately, President Roosevelt made the same crucial mistake President Hoover made 5 years earlier, so the recovery didn’t last. FDR raised taxes sharply in 1937 in an attempt to balance the budget. Once tax increases took effect, the economy collapsed into another recession – the second stage of the double-dip which lasted into WWII. ( emphasis mine)
President Harry S. Truman, whom we all know was a huge history buff and an avid reader, learned just how dangerous Keynesian economic policies had been while he was serving as FDR”s Vice President , and as President in 1945 directed a true economic recovery through conservative, pro-growth principles:
As Burt Fulsom writes:
Congress reduced taxes. Income tax rates were cut across the board. FDR’s top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.
Corporate tax rates were trimmed and FDR’s “excess profits” tax was repealed, which meant that top marginal corporate tax rates effectively went to 38% from 90% after 1945….By the late 1940s, a revived economy was generating more annual federal revenue than the U.S. had received during the war years, when tax rates were higher. Price controls from the war were also eliminated by the end of 1946. The U.S. began running budget surpluses. ( emphasis mine)
How many of our readers can even imagine what a tax rate of 90%, as highlighted above, would do to this country ? Could that happen again? History already shows us that it will, if we do not address the current economic cliff we are standing on the edge of, and if we do not reinstate the free market principles that lead to overall economic growth and create a stable economic climate . That simply means less taxation through corporate tax rate deductions and a repeal of the overbearing, expensive regulations that stifle economic growth. The more companies and businesses pay in taxes, the less money there is for expansion and new job creation. It doesn’t take a Harvard trained elitist or a career politician to understand these facts. To the contrary, all it takes is a look at the history of economics above, with an eye on just what policies were good for America and which ones were proven to lead to double-dip recessions. It is historical fact.
Last but certainly least, President Clinton’s policy record shows us both how misleading Liberals are when they say he lead us into the most prosperous economy in U.S. history, and their fallacy of whether or not he raised taxes to do it:
The disastrous mistakes from Presidents Hoover and Roosevelt underscore the importance that Washington not raise taxes in a weak economy. But that doesn’t stop the Left from advancing the notion. They point to Clinton’s record as proof. After all, Congress pushed through a big tax increase under President Clinton, and the economy boomed, right? ( emphasis mine)
That much-overstated Liberal propaganda, when discussing the history of U.S. economic policy with regard to the Liberal tax-the- rich schemes, is in fact just that, mainly mind-manipulating propaganda put out by the ever- economically- illiterate Socialists posing as working-class champion Democrats as we see here:
Heritage senior fellow JD Foster adds:
The first period, from 1993 to 1996, began with a significant tax increase as the economy was accelerating out of recession. The second period, from 1997 to 2000, began with a modest tax cut as the economy should have settled into a normal growth period. The economy was decidedly stronger following the tax cut than it was following the tax increase. ( emphasis mine)
So there we have it, from Presidents Hoover, to FDR, to Truman, and finally to the myth of President Bill Clinton’s much-stated tax increases having ‘supposedly’ led to economic prosperity and job creation, we see that U.S. economic history shows us that raising taxes , especially during the current Obama-recession, will lead us straight into a double-sip recession. A double-dip recession, and possible great depression are on the horizon for America due to Barack Obama’s current numerous tax increases, ( some obvious and many hidden) and his big government-over- regulation-laden agenda. Obama knows he is a one and done President, and is doing everything he can to set up the next administration to fail by pushing for massive tax hikes during the current recession, while all the time blaming it on Republicans. History tells us that this is, in fact, Barack Obama’s current agenda. Let’s all work together to avoid a double-dip recession that will hurt all Americans, and defeat Barack Obama in 2012.