Friday, November 7, 2008

Obama's press conference

In Obama's press conference, there were a couple items of note.

1) He is working on another economic stimulus package
2) Obama also left the door open to the possibility economic conditions might prompt him to change his tax plan that would give a break to most families but raise taxes on those making more than $250,000 annually.
3) He planned to extend unemployment benefits.

The stimulus package that Bush passed was a blip in the grand scheme of things, and it did nothing for the economy and this economic stimulus package will be no different. Unless the stimulus package is long term (ie: tax cuts), the market and the economy ignore it. There may be a week of benefit, but it will quickly recede. This is going to be a long and enduring recession.

Until people feel confident, there will be no economic recovery.

On the second point Obama stated he plans to change his tax plan. He plans to still tax people over 250,000 dollars but not quite redistribute it as he had promised. Once again, you don't raise taxes on the very people who take the risks and create the wealth. Time and time again when you decrease taxes, you increase the tax base because businesses can grow. This is the main flaw that liberals fail to understand.

I have no problem with extending unemployment benefits during a recession.

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