Obama Top Advisor Larry Summers: Most Economists Agree Higher Taxes Fuels Job Growth
Posted by Jim Hoft on Thursday, February 11, 2010, 1:00 PM
Not only does the Obama Administration believe that you can spend your way out of a recession but yesterday we found out that they also believe that higher taxes fuels job growth.
Obama’s chief economic advisor Larry Summers told reporters yesterday that increasing taxes on the rich is a great way to fuel job growth.
Business and Media Institute reported:
President Obama continuously tries to portray himself as a friend to the little-man, middle class and small business. Hence his attacks on “fat cats” who “just don’t get it,” while labeling the extravagant bonuses as “obscene,” and “the height of irresponsibility.”
Meanwhile, members of his administration, in defending a sweeping small-business aid program Obama announced in his State of the Union, give reason to wonder if they really understand how to help small business.
Among the administration’s proposals for small businesses are a $5,000 tax credit to hire new workers, elimination of capital gains taxes, and new incentives to invest in plants and equipment. At the same time, however, the administration plans to raise taxes on “the wealthiest Americans.”
Obama’s chief economic adviser Larry Summers appeared Feb. 9 on the Fox Business Channel to discuss the administration’s economic agenda and defended proposed rate-hikes for those making over $250,000. “Almost all economists who studied these things have that kind of view,” he told Fox’s Liz Claman.
Perplexed, Fox News contributor Gary B. Smith replied: “it’s the biggest bunch of B.S. I ever heard … this is such a political game. , Larry Summers thinks everyone is Rockefeller living in their Newport, Rhode Island mansion. These are guys that are starting businesses, investing. You can’t give people business money to hire people, they have to have a reason for hiring these people and that’s because they see sales increasing or costs decreasing. You can’t just say ‘go hire these five people’ because the businesses will go ‘What for? I don’t have the demand!’”
It’s going to be a long and destructive four years.
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drjohn commented:
Well, hold on a minute. Raising taxes could mean more GOVERNMENT jobs.
Of course, these twits have absolutely no idea of the value of a government job to the economy.
Peggy commented:
I am going to have to seek therapy for economists. This administration has put forth the most bass-ackward economic thinking I have ever heard. I am losing my mind. I had hope for Larry Summers when, at Harvard, he pointed out the statistics for less participation by women in math and sciences.
BuryMeInAGeorgeOrwellTShirt commented:
Everyone has a price.
bill-tb commented:
What perplexes me is why didn’t the foreclosed home owners just tell the banks they will spend their way out of their dilemma.
Charlie Gibson commented:
It’s a consensus…settled, er…well known, ah…i got nothin’.
mrt commented:
Higher taxes does fuel job growth.
OVERSEAS!
Bill Mitchell commented:
The truly amazing thing is that roughly half of Americans still support this buffoon.
Don’t forget that this is the BRILLIANT man who said these words:
“I would rather be a great one term President than a mediocre two-term President…”
That belongs in the “Non-Sequitur Hall-of-Fame” in the category of “Greatest Oxymorons Ever Uttered”.
Reaganite Republican commented:
Interesting theory-
Which planet is that on?
seven commented:
I am an economist. Higher taxes mean higher taxes. They do not increase jobs directly except tax preparors or IRS jobs. Lower taxes incentivise capital spending. If Obama writes Summers talking points, I understand. I doubt he believes what he says.
The value of equities in America has fallen by 10 trillion since a peak during Bush. I suppose taxing people on top of a sharp drop in equities gives a buzz for the socialists. It sure won’t grow an economy.
Bill Mitchell commented:
THE BAD NEWS:
Unemployment will continue to suck.
THE GOOD NEWS:
A natural rebound in the economy will not save these idiots from utter electoral disaster in November.
Remember that recessions are a NORMAL part of the business cycle and occur roughly every ten years. But just as Roosevelt’s social engineering prolonged the Depression, so Obama’s idiotic socialist agenda is prolonging this recession.
IOpian commented:
That’s akin to saying that higher prices fuel more buying.
Daniel commented:
Larry Summers – visitor from the planet Melmac.
Along with the rest of the administration.
It’s the only explanation.
Kaitian commented:
You mean three years!
Pat the First commented:
I can tell you that I will not be hiring anyone new until I have to hire someone. And that means increased business. No way am I taking out any loans just to hire someone I don’t need.
Major Kong commented:
This is the problem when all of your advisers are either academicians or activists of one stripe or another. These are the sorts that Dear Leader has sought to surround himself with. Why would anyone be surprised when pablum of this nature is offered as expert advise?
pontoon commented:
If this is not proof of the ideology driving this mess I don’t know what is. No one in the private sector would be this arrogant and clueless. this does not work in the real world Barry.
Militant Conservative commented:
Just another nail in the zeros accomplishment casket lid. This would be funny if it we not happening here.
Zero will go away it is all the nuts that voted for him I am worried about.
dallasdan commented:
So much BS. The crap being spewed in obamaland is beyond comprehensible.
Patman77 commented:
Up is down. Black is white. Get used to it.
Obama/Biden 09′.
Spider commented:
The incentives they are talking about are one time ‘hits’. You hire an employee and get $5,000, you buy a machine and get a tax credit, etc., but the demand for your products and services does not change, so you have an idle worker, and an unused machine. This is demand side economics, it don’t work.
Remember the boom years? 1982 to 2008? They were brought about by Supply side economics…. TAX CUTS.
avery commented:
I just heard Snan said that their was 4 billions dollars in the jobs bill for “Acorns”
wow commented:
DanielNo Gravatar
February 11th, 2010 | 2:14 pm | #15
Larry Summers – visitor from the planet Melmac.
Along with the rest of the administration.
Hell even Melmac didn’t want them and we’re stuck with them. I’m no economist, but understand that high taxes will fuel nothing here in this country. What nitwits and at what cost!
Dana White commented:
More proof that his loony administration will say ANYTHING! Like POTUS saying that “all” economists agree that stimulus save or created millions of jobs.
DocScience commented:
America is so screwed.
Where is Ayn Rand when you need her?
squeaky commented:
i think gov paterson knows first hand how well taxing those rich folks works out.
http://www.businessweek.com/news/2010-02-11/obama-agnostic-on-deficit-cuts-won-t-prejudge-tax-increases.html
BurmaShave commented:
Among Liberals I used to think Larry Summers was one of the saner and more mature of his lot. Well, I am past that now.
Sojourner commented:
..of course, BHO said during SOTUA, he wouldn’t raise taxes on the middle class.. that was the clue!
(November’s going to be…historic.)
Jeff Boarman commented:
Christina Romer’s own research disagree’s with Summers. Please, GatewayPundit, put this research out there! For goodness sakes, its Romer’s own research that directly disputes Summers!
http://elsa.berkeley.edu/~cromer/RomerDraft307.pdf
“The resulting estimates indicate that tax increases
are highly contractionary. The effects are strongly significant, highly robust, and much larger than those
obtained using broader measures of tax changes. The large effect stems in considerable part from a
powerful negative effect of tax increases on investment.”
wth commented:
dallasdan said:
So much BS. The crap being spewed in obamaland is beyond comprehensible.
Every day. Every single day there is some idiotic statement or blatant lie out of this administration. It’s an adventure.
tjexcite commented:
How does anyone get a job if the money to pay that person goes to the government.
Eddie Kovacs commented:
And while we’re at it, new studies prove that being raped in prison is good for your health.
sybilll commented:
I know they love the broken window fallacy, but, I can’t even see how that would apply with this nonsensical nonsense.
WRJonas commented:
The insanity of this administration is beyond measurable. In their world , if the boat is sinking you pour more water INTO the boat.
Andreas K. commented:
Yep, higher taxes bring more jobs.
It works perfectly in Europe. Definitely works amazingly in Scandinavia. Sweden, for example, is a paradise! No unemployment! No crime! No… wait a second…
Crime ridden, police castrated, socialist running rampant, millions of currency destroyed every day. That’s Sweden.
It also worked well for my uncle here in Austria. Who just lost his job. Oh wait…
Or the steel mill in my hometown, where they’re going to fire a few hundred people. Oh wait…
Ah… well… forget I said anything. Nothing to see here.
Higher taxes bring more jobs! More spending also brings more jobs!
And pigs are blue with green dots and can fly!
Yes!
czekmark commented:
It’s probably no coincident that the high taxers are also global warmists.
Corporal Vere commented:
Most clueless economics professors think . . .
Highest worked sooo well in uber-taxed states like CA, MI, NY, NJ, VT.
In fact, these states would not have the highest unemployment rates or be in bankruptcy if they’d just raise more taxes: more, more, more, more.
Ah, yes. The country’s in the best of hands.
We’re screwed.
Corporal Vere commented:
No!
Them evil people at FOX didn’t let him finish . . . . He meant fuels job growth for Repo men and women (EEO), and concentration camp guards.
cal rifkin commented:
Patman – agreed! —- How is it even possible for dipsh!ts like this to be where they are?? It make me want to go po$tal !!
Auntie Em commented:
Psalm 109:8
Susan commented:
This is known as “voodoo economics.”
Solaratov commented:
DocScience
February 11th, 2010 | 3:07 pm | #28
America is so screwed.
Where is Ayn Rand when you need her?
+++++++++++++++++++++++++++++++++++++++++++
Dead.
It’s up to us now.
Espresso Logic - The 6th Sense commented:
DocScience
February 11th, 2010 | 3:07 pm | #28
America is so screwed.
Where is Ayn Rand when you need her?
Ayn lives on with:
http://www.aynrand.org/site/PageServer?pagename=index
Espresso Logic - The 6th Sense commented:
Can we just put Larry Summers in the F’ing Retard column or is that not PC?
Sojourner commented:
Once BHO’s economic experts (haa) reset what “wealthy” is to pay for his redistribution spree,we’ll see what kind of deals the unionized government workers get…Rush was saying that if you add their benefits and salaries, many make upwards of $175,000.. suspect the Dems will write up a sweet ‘wealth tax union exemption’ just like they did with scaled-back tax on high end union health insurance plans:
http://online.wsj.com/article/SB10001424052748704281204575003040695279432.html
(currently, the unemployment rate for unionized government workers stands at 3.6%).. but remember, POTUS “feels our pain.”
howdareyouaskformyname commented:
I own a small business with 17 employees. The only way I could take advantage of the tax cut for new employees is by firing someone I already have on payroll and replacing them. All we need right now is more job instability. I am already carrying more people than I really need in hopes things will get better.
Obama is an ass. He has never done an honest day’s work in his life and it shows.
Scott commented:
Gee Larry, how much are they paying you??? You “had” a reputation for being a bright guy. What price did you get for selling your reputation?
Fred Berry commented:
Every time someone in this administration opens his/her mouth about the economy, jobs, taxes, etc. I reach for my revolver…
Aussie commented:
I have a Bachelor of Economics degree, and even if my degree is modest, I do not agree with Larry Summers. What an idiot to even propose that “higher taxes mean more jobs”….
Blue Collar Todd commented:
Obama is concerned about expanding bureaucracies, which create jobs on the government payroll. I think the more people lose their job the better Obama sees it so the Democrats can gain more power over our lives. The Democrats know that their time is limited with a 2010 revolt against them at the ballot box. What will the “by any means necessary” Party do to try and prevent losing power? Time will tell.
averagemelon commented:
So many “smart” people in this administration have never stuck their head out the door of academia and sniffed the air of the real world. They have UTTERLY no clue how money makes the world go round and round. What do you expect from a president that never held a job in his entire 49 years of life?
He is doomed and so are we until he is gone.
TrickyDick commented:
Higher taxes does fuel job growth…..in the gobvernment. But for every job created in government, 2 or 3 are lost in the private sector. The guys an idiot!