Monday, April 27, 2009

Overspin: Must Stop Listening to President Obama

One week President Obama pressed a $787 billion stimulus package and the need to cover America's 50 million people without health insurance coverage. The next he called for fiscal restraint and passage of PAY-GO legislation. Cuts in federal spending occur alongside any new expenditures.

Obama then called for R & D spending equal to 3% of gross domestic product. He proposed a new agency, the Advanced Research Projects Agency for Energy, or ARPA-E. It will seek to do "high-risk, high-reward research" in energy. Recall the impact of high risk, high reward strategies on Wall Street.

Three percent of GDP, that's an annual expense of $430 billion. PAYGO requires cutting what, Mr. President? Add Obama's stated desire to corporate chief executives and the situation becomes more bleak. The President envisioned corporate income tax rates declining over time.

I see investments, R & D and healthcare, that corporations and the wealthy don't want to pay. That leaves the common man. I hope our health lasts.

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