Just as he promised, Obama has fundamentally transformed America.
The Standard & Poor’s downgrade of U.S. debt is the latest fruit of the Obama administration’s big-government policies. Ask Americans how the country is doing, and the response is a vote of no confidence. In August 2009, 34% of likely voters said the country was headed in the right direction. A month ago that proportion had declined to 25%, and last week only 16% thought so. Rasmussen’s mid-August poll found that 4% of adults rate the economy as good or excellent, and 66% think we are doing poorly.
Just before his election as president, Barack Obama declared that “we are five days from fundamentally transforming America.” He has made good on that promise. Huge increases in federal spending—up 28% in just three years—were the beginning. Putting health care—17% of the American economy—under Washington’s control was next. Government control of business is expanding too: 379 new government business rules were added in July alone, according to Sen. John Barrasso of Wyoming. Federal government debt held by the public rose from $6 trillion (40% of GDP) in 2008 to $9 trillion (62%) in 2010, The Congressional Budget Office says it could reach 200% by 2037, if the economy doesn’t collapse first.
One of the Obama administration’s central (and most damaging) beliefs is that tax rates must be raised for what President Obama calls “millionaires and billionaires,” which he defines to include individuals and small businesses making as little as $200,000. Interestingly, Christina Romer, who was chairman of Mr. Obama’s Council of Economic Advisors, has done some research on the impact of tax increases, and concluded that increasing taxes by 1% of GDP for deficit-reduction purposes leads to a 3% reduction in GDP.