By Larry Kudlow CNBC

Let me be very clear on the economics of President Obama’s State of the Union speech and his budget.

He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.

That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.

Raising the marginal tax rate on successful earners, capital, dividends, and all the private funds is a function of Obama’s left-wing social vision, and a repudiation of his economic-recovery statements. Ditto for his sweeping government-planning-and-spending program, which will wind up raising federal outlays as a share of GDP to at least 30 percent, if not more, over the next 10 years.

This is nearly double the government-spending low-point reached during the late 1990s by the Gingrich Congress and the Clinton administration. While not quite as high as spending levels in Western Europe, we regrettably will be gaining on this statist-planning approach.

Study after study over the past several decades has shown how countries that spend more produce less, while nations that tax less produce more. Obama is doing it wrong on both counts.

And as far as middle-class tax cuts are concerned, Obama’s cap-and-trade program will be a huge across-the-board tax increase on blue-collar workers, including unionized workers. Industrial production is plunging, but new carbon taxes will prevent production from ever recovering. While the country wants more fuel and power, cap-and-trade will deliver less.

The tax hikes will generate lower growth and fewer revenues. Yes, the economy will recover. But Obama’s rosy scenario of 4 percent recovery growth in the out years of his budget is not likely to occur. The combination of easy money from the Fed and below-potential economic growth is a prescription for stagflation. That’s one of the messages of the falling stock market.

Essentially, the Obama economic policies represent a major Democratic party relapse into Great Society social spending and taxing. It is a return to the LBJ/Nixon era, and a move away from the Reagan/Clinton period. House Republicans, fortunately, are 90 days sober, as they are putting up a valiant fight to stop the big-government onslaught and move the GOP back to first principles.

Noteworthy up here on Wall Street, a great many Obama supporters — especially hedge-fund types who voted for “change” — are becoming disillusioned with the performances of Obama and Treasury man Geithner.

There is a growing sense of buyer’s remorse.

Well then, do conservatives dare say: We told you so?

Hmmm....I saw a different speech then you did. I heard him talking about helping small businesses.

Yes, it's going to get worse before it gets better. Obama inherited a terrible economic mess and two wars.

Some will never be happy winx.
They take every good thing Obama says and turn it around and around, unable to accept anything good from him, until they find the tiniest flaw and then jump to every (wrong) conclusion they can.
They make mountains of mole hills.

I call them Un-American!

I heard good things about energy, healthcare, education and more.

Dont read too much into it, but Obama's approval rating jumped 17 points to 80% after that speech.

I have honestly been out of the loop so I don't know what was said and what wasn't.....
i'll just watch for now

I suppose you think you're getting a tax cut too because you don't make more than $250k/a, don't you? I wouldn't be surprised if you'd believe that man's farts smelled like roses if he told you they did.

Obama declared war on banking and private business years ago when he helped ACORN to sue the Clinton Admin to force banks to make home loans to people who weren't qualified to borrow enough money to finance a lawn mower.

The stinkulus bill is growth for welfare and big government, not for private enterprise and small business. I suppose there are those here that think that's a good thing though..

haha some people did the same with Bush

its all in the demonization of the opposition

No, Bush earned everything he got.

"you'd believe that man's farts smelled like roses if he told you they did."

You're one class act.

I see the man's flaws. Everybody has them. I am happy that he is President and Bush and McCain are not.

Got Popcorn?

this is a BYOP forum
stop that damn fanta

Goody for you. I'm soooo glad you're **happy**

So you like growing welfare rolls, growth stunting tax hikes and growing government involvement in every aspect of your life..

Notice the Bush years?

He's screwed us so bad that to recover calls for many hard and drastic decisions.

His policies (yours) have been proven not to work.

what I notice is that the Clintons were decimating the military, pretending that we were invincible and driving up taxes during the 90's. Clinton's "surplus" is a result of decreased defense spending and high taxation.

There should never be a "surplus". Surplus means the government is keeping tax money that it is not spending.. your tax money.

lol at Obama for spending 2 trillion in pork projects his first month and calling it "stimulus" then turning around and calling for responsiblity in spending

That military was good enough to march across Iraq in 42 days.

Decimation is what Bush did to them by occupying the damn place for so long.

Better a surplus that is applied to the debt, than more debt.

Pork?
The Republicans added the Pork playing politics.
That my friend they are famous for.

I also notice the deficit coming down until the dems took office inthe second half of bush's 2nd term..

and then exploding/

are you denyng that Clinton gutted the Miitary?

They were good enough to get to Bagdad in 6 weeks because one of the first things bush did was start undoing the damage that Clinton did to the military

I think your noticer is a bit out of wack.

You do know when Bush was President dont you?

SOTU: Federal Earmarks Have Exploded Under Bush And GOP-Led Congress
Bush said: “The people’s trust in their Government is undermined by congressional earmarks — special interest projects that are often snuck in at the last minute, without discussion or debate.”

FACT — BUSH HAS ENGAGED IN HIS OWN EARMARKING: In 2007, Bush stuffed approximately 580 earmarks worth $15.6 billion into his appropriation request for military construction and veterans affairs. Bush’s earmarks included $24 million for the Laura Bush 21st Century Librarian Program and “$8.9 million for the Points of Light foundation, a pet project started by his father, former President George H.W. Bush.” [Washington Examiner, 11/15/07]

FACT — BUSH HAS REPEATEDLY SIGNED PORK-LADEN BILLS INTO LAW: According to the Congressional Research Service, there were 997 earmarks in the Fiscal 2000 defense appropriation bill. By the Fiscal 2005 law that Bush signed into law, there were 2506 earmarks, “more than two and half times the number contained the Fiscal 2000 bill.” In the bill funding the departments of Labor, Health and Human Services and Education, the number of earmarks grew from 291 in 2000 to 3,014 in 2005. [Lilly, 1/28/08]

FACT — EARMARKS EXPLODED UNDER THE GOP-CONTROLLED CONGRESS: When Republicans took over Congress in 1994, there were 4,000 earmarks on appropriations bills. At the end of the 109th Congress in 2005, there were 15,000. [Washington Post, 1/25/06; The Gavel, 1/28/08]

FACT — CURRENT 110TH CONGRESS HAS CUT EARMARKS IN HALF: “As promised when they took control of Congress,” in 2007, “House Democratic leaders cut in half from last year the value of earmarks in the bill, as they did in the other 11 agency spending measures.” [New York Times, 11/4/07]


http://thinkprogress.org/2008/01/28/sotu-federal-earmarks-have-exploded-under-bush-and-gop-led-congress/