For the life of me, I do not understand what Barack Obama’s economic philosophy is, even when he comes right out and says it.
President Obama: “We can’t grow this economy from the top down. We’ve got to grow this economy from the middle class out.”
— Barack Obama (@BarackObama) October 17, 2012
What in the name of Adam Smith does that mean? Of course you can’t grow an economy from the top-down, which is a baffling statement for him to make since that’s exactly he has been trying to do since 2009. The
Vote Buying Act Stimulus Bill? The “green” contributor paybacks loan guarantees to Solyndra, Fisker, and so on? That’s the very definition of trying to grow the economy from the top down.
I can suppose he meant that you can’t grow the economy by letting “millionaires and billionaires” pay less than whatever percentge of taxes Barack Obama thinks is their ‘fair share” while nearly half of us pay nothing at all. If that’s the case, and I’m almost sure it is, then the President doesn’t have an economic philosophy, he has an old 60′s protest sign he’s using as an economic philosophy. But that other sentence is equally nonsensical. You can not grow an economy from the middle class outward, because the middle class, largely, does not create capital and capital is what grows the economy.
I can not fathom what grown adult with even a small amount of responsibility for someone’s financial well-being could believe you can magically stimulate some arbitrary group of people you call the middle class into growing a vibrant economy. Growing economies need people at the top creating capital like Donkey Kong creates barrels. Economic growth is capital growth. Period.
Don’t get me wrong. I like the middle class. One day I aspire to a nice little upper middle class lifestyle. But the middle class is what happens when the upper class puts its wealth to work instead of hiding it away from greedy government grabbers or, worse, not hiding it from greedy government grabbers who spend it on floating outhouses and cars no one wants to buy. We need tens of thousands — no, thousands of thousands — of rich people trying to make themselves even richer by putting their money at risk. I want them out there churning billions of dollars into the economy and creating billions of dollars more of brand-spanking new capital that will enrich every last man jack of us. Employment will rise. Wages will rise. Workers will have more power as their labor becomes worth more and more. Consumers will spend more because they know they’re on far safer financial ground, which will further enrich small business owners and large business owners and all their employees, who will get their cut of all those dollars rolling in.
We all want a huge, happy middle class. That will only happen when the upper class thinks it can create more wealth. Capital is where it’s at, people. Capital at work drives the economy, creates and broadens the middle class, drives innovation, and makes America the world economic power it ought to be. Not government. Not hope and fundamental change. Capital.
That, to borrow a phrase from the President, is not politics; it’s economics.
Category: The Economy and Your Money