On CNBC today, a "Democratic" Party cheerleader explained Mr Obama's tax increases would lead to prosperity. After all, she reasoned, the proposed tax increases would be no greater than the tax increases during the Clinton administration. In a marvelous flourish of speciousness, she indicated the tax increases caused the Clinton era economy to improve.
Wrong, wrong and wrong.
Tax increases lead to the government taking more of your money. The only way that could lead to prosperity is if the government spends your money on you in a better way than you can.
Mr Clinton inherited a prosperous economy from the previous Bush administration, so any comparison between 1992 and now needs to bear that in mind. That economy itself was a legacy of Mr Reagan's energetic transformation of the government into a lighter burden for the people. What is interesting was the newsdroids insisted in 1992 the economy was in a horrible slump. The networks didn't come clean until after the election. The economy had been fine all along. Seems the networks needed to lie a little for their "Democratic" Party buddies. But I digress....
The tax increases of the Clinton era lead to two events. The first was an immediate decrease in economic output. The second result was a Republican majority in both houses of Congress. When Republicans got control of Congress (where the laws are made) they refused to further damage the economy and reversed some of the Demo Congress' stupid spending and tax increases. The result was an improving economy and a more closely balanced budget.
Mr Bush's "New Tone" insistence amounted to Republicans acting like a lightweight version of Democrats. In consequence, deficits mushroomed and government got poised to be more intrusive. Now Mr Obama has the nation far more in hoc than during any previous administration. Mr Obama spends credit at a rate five times that of any previous administration ever. With that much credit in use, we don't have the room for tax increases. Instead, federal spending must be cut back, way back, to Clinton era levels.