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Location: Pantego, Texas, United States

Sunday, July 12, 2009

Victor Davis Hanson has written an article explaining how Obama and the Democrats are waging war on economic producers. These are the middle class entrepreneurs. The enormously rich people like Soros, Buffett and Gates are not really affected by the increased taxes the Democrats want. And, they actually like the fascist controls and regulations that hamper upstart disruptive technology; they are happy with the status quo that restricts future GDP growth but insures their dominant position. Obama represents the realization of Ayn Rand's vision in Atlas Shrugged in which the looters and the moochers are in control of the nation. The question then is will the middle-class producers go "John Galt?" I saw a Democrat "spinner" on TV say that liberal "think tank" studies show that the personal marginal tax rate has to exceed 70% before initiative is affected. I am not so sure about that. Recently a plumber did some work at my house. He had recently bought a new truck, and said his intention had been to hire another employee to work out of his old truck. But, because of economic uncertainty and questions about future taxes, mandated healthcare, etc. he had parked the old truck and would probably just sell it. It may be that he was simply paralyzed by uncertainty about what the President and Congress would do in the future. But, he seemed pretty well convinced that he wasn't going to like what they were going to do with regard to taxes, regulations, etc. According to what I have read, the reason the 1929 recession turned into the Great Depression was largely the result of uncertainty about government intervention that caused people to not make new investments. The government action of the Hoover Administration made the situation worse. After FDR took over in 1933 he put Hoover's government action on steroids, and the the economy declined further. (The Democrats recall that things got better, but I was there, and people I knew thought things continued to deteriorate.)

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