Democrats and the Obama Administration appear to think that people will not react to their economic initiatives such as limiting pay and increasing taxes. But, history shows that people do respond to their economic interests. Some Democrats think that it is unimportant if some high level, creative people leave their jobs in financial institutions, or move to a new location. We already see famous people like Donald Trump and Rush Limbaugh saying they will leave New York because of an income tax increase. And bankers are beginning to change jobs because of Obama's imposition of salary caps. So far not many people have been leaving the US, but that will come as the Obama rule becomes more heavy handed. Capital flight is also likely to become an issue. The Clinton Administration was working on laws to prevent capital from leaving the US in 1994, but Democrats lost control of Congress in 1994, preventing implemtation of measures that were feared to cause capital flight. Obama has a lot more support for draconian regulations than Clinton did, so he will probably proceed. If the carbon cap and trade law is passed many businesses will simply close here and move abroad to India and China, and even into Mexico and Canada. Unemployment in the US will soar to 20%. For a while, the majority of people will be working for federal, state and local governments, but eventually the government will have to start layoffs as tax revenues fall.