Reformation Faith Today

Mark W. Hendrickson at Grove City College’s The Center for Vision and Values has a great article titled Economic Nonsense. In the article, he takes on a Princeton professor and former Federal Reserve vice chairman, Alan Blinder. Blinder is the author of The Great Debate. He is also a Barack Obama supporter. Hendrickson quotes Blinder’s misleading statement about tax cuts and then provides the real facts:

Blinder wastes no time in misleading his readers. In his opening paragraph, he writes, “McCain wants more tax cuts for the rich; Obama wants tax cuts for the poor …” Fact: McCain wants to retain the Bush tax rate cuts, not enlarge them. Like Democratic President John Kennedy and Republican President Ronald Reagan, McCain favors non-punitive marginal tax rates because they enhance economic growth and job creation. Fact: even with the Bush reductions in marginal tax rates, the tax rate on the rich is significantly higher than on the non-rich, and the rich’s share of total income tax payments has increased. Fact: Obama can’t give tax cuts to the poor, because the poor already pay zero federal income tax; what Obama proposes are tax credits, i.e., a negative income tax whereby the Treasury would mail checks to low-income Americans.

Notice the effect of what Obama wants to do. He wants to give “tax cuts” to people who don’t pay any taxes. Folks that is socialism!

Hendrickson goes on,

It is Prof. Blinder’s right to shill for Obama if he so desires, but a more candid, economically credible pro-Obama argument would be: my candidate wants to redistribute wealth from rich to poor to reduce income inequality; he wants to increase all sorts of federal spending. If Congress enacts his program, the short-term effect will likely be a boost to economic growth. In the long run, though, such booms generally wear off, and overall growth will slow as it has wherever and whenever government has absorbed a larger share of a country’s economic activity.

I know facts like these are hard for some people to deal with. Karl Marx would be pleased.

Socialism: All socialists advocate the creation of an egalitarian society, in which wealth and power are distributed more evenly.

Obama supporters, if there are any out there willing to speak up, is this what you are for?

Read the article here.