100-Day Lurch to the Left
In the early 1980s, Ronald Reagan's popularity and policies moved American politics firmly to the right. In only 100 days, Barack Obama's politics and policies have shifted America way to the left.
The president is seeking to change the whole relationship between the government and the free-enterprise private sector. He is steering the country away from democratic capitalism and toward his big-government command-and-control vision. We are witnessing a triumph of government bureaucrats over entrepreneurs, investors and small businesses.
And with Sen. Arlen Specter switching from Republican to Democrat, Obama can now move the nation even further to the left. A filibuster-proof Senate will mean even greater economic restructuring, with expanded government control of health care and energy and increased unionization.
This looks very much like a war against investors, businesses and entrepreneurs. Shareholder rights are being eviscerated. Political decisions are replacing the rule of law, the rule of bankruptcy courts and free-market principles.
We are witnessing more spending, deficits and debt-creation than anyone ever imagined. Bailout Nation has run amok. This started under George W. Bush, but Obama is raising the stakes exponentially.
The latest federal budget would double the debt in five years and triple it in 10. For some perspective, that debt level is higher than the combined debt levels generated under every president from George Washington to George W. Bush. According to the CBO, federal debt held by the public as a percentage of gross domestic product under Obama is projected to rise to 82 percent in 10 years. The budget deficit itself never drops below $670 billion and closes the period at $1.2 trillion. That's nearly a 6 percent share of the economy.
All of this will certainly lead to large tax-rate hikes that will rob incentive power from entrepreneurs, investors and small-business owners. Just look at Britain, where the top tax rate has been raised to 50 percent from 40 percent. The Thatcher Revolution is being repealed over there. Unless current trends are reversed, the Reagan Revolution will be repealed over here.