A speech made by Lawrence H. Summers, head of the White House National Economic Council indicates just how far from reality Obama has reached in predicting the economic future of America. His prediction that the American economy would be reshaped to be less dependent on consumer spending and more on manufacturing must have sent peals of laughter through India and China.
Once an admired economist while Treasury secretary under Bill Clinton, in making his predications he did everything but wear a clown suit to show just how ridiculous he and the Obama administration has become recently.
The reality is that the more taxes Obama piles on U.S. manufactures, the more apt they are to open or moving facilities to the countries that offer them the lowest taxes and fewest penalties for risking their capital.
At the same time that Summers was doing his song and dance for the gullible press and those listening at the Peterson Institute for International Economics, U.S. states were reporting the largest drop in revenue in 46 years. This was not just an isolated incidence, it is happening in 47 of the 50 states in the first quarter of 2009. And the prediction is that the second quarter is going to be even worse.
As Obama piles tax after tax on U.S. businesses and manufactures, both China and India offer incentives that makes it cheaper to make products there and ship them to American consumers. (See articles below)
Not only do U.S. companies moving to China and India have tax advantages but they will also escape the cap and trade penalties that will be put on American manufactures who will have to pass those tax-incurred costs to consumers, putting them out of competition in the rest of the world.
If those listening to Summers believed what they were hearing, perhaps they are ready to invest in an oasis in the middle of the Death Valley desert.
To read more, go to:
State Tax Revenues at Record Low...
http://www.nytimes.com/2009/07/18/us/18states.html?emc=tnt&tntemail1=y
Summers: Switch from Spending to Producing to Fix Economy
Consider the Total Package When Looking to Relocate in India
Tax Incentive for Investing In China
China Economy Expands as U.S. Shrinks
Obama Cap and Trade Send Jobs to China and India
China Taking Steps to Shift Away from Using U.S. Dollar
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Comments
Excellent commentary!!!
How stupid are we -- and the media -- to listen to economic forecasts. Did Larry Summers -- a year ago-- know that the market would crash and recession would happen? Nope. Then how does he know whats going to happen this fall? I love watching the TV anchor-reporter bozos go along with this crap.
In regard to the stimulus investment, my understanding is as follows:
1. The current surging fuel cost (World oil prices doubled during the last 6 months) is overwhelming the market rally.
And the pending clean energy bill might serve as a second stimulus package world-wide boosting private investments.
2. People are so worried about losing their job, coverage, denial of treatment, which seems to increase bank deposit latetly. That means stimulus funding mainly goes toward bank deposit for a rainy day increasing jobless rate. It proves again that a healthy society yields better productivity, prosperity.
It is time to 'Change' the notion of the public health as a fundamental human right and install 'a safety system for all' like all of the other industrialized nations, I think.
3. The stimulus funding begins to mobilize just 11%, meanwhile, the auto industry has undergone its restructuring with the massive job-related impact.
4. The pandemic swine flu has been hurti
You are a great writer!
I think Obama is doing a nasty job. Most people seem to think so too, vote here!! tinyurl.com/vobama
Obama is also STEALING lines from McCain which he ripped McCain for saying.
""Some of the jobs that have left the state of Michigan are not coming back. They are not. And I am sorry to tell you that," he said in Grand Rapids on Jan. 10, 2008."
""The hard truth is that some of the jobs that have been lost in the auto industry and elsewhere won't be coming back," Mr. Obama said on Wednesday, according to prepared remarks released by the White House."
Has Obama kept ANY of his promises?
well I don't know but things appear to be normal atlast except may be the jobs.
HSRO601 said "And the pending clean energy bill might serve as a second stimulus package world-wide boosting private investments." The only ones to be stimulated by a "clean enegy bill" (cap and trade) will be China and India. Many American jobs will be lost and large-scale losses in disposable income will result as energy costs soar. The way to stimulate the economy is put more disposable income in the hands of the public and I don't mean $250 stimulus checks! Why must we constantly relearn history? Just check figures on the American economy after Presidents Reagan's tax cuts. Go ahead - educate yourself. Your epiphany will be startling.
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