Obama’s Debt, Wall Street Bonuses and the Economy vs. the Environment
A new congressional report estimates that President Obama’s spending proposals will produce over $9 trillion in debt.
Debate continues over the plan to tax some Wall Street bonuses at 90%.
A new Gallup poll finds that a majority of Americans rank economic growth higher than environmental priorities.
For more top stories listen to the LibertyWeek podcast.
1. ECONOMY
A new congressional report estimates that President Obama’s spending proposals will produce over $9 trillion in debt.
CEI Expert Available to Comment: Special Projects Counsel Hans Bader on how the numbers stack up:
“Obama’s budget would explode the national debt while increasing taxes. That’s the conclusion of the Congressional Budget Office, controlled by lawmakers who support Obama. ‘The President’s proposals would add $4.8 trillion to the national debt,’ increasing ‘the cumulative deficit from 2010 to 2019 to $9.3 trillion.’ The budget also adds $1.9 trillion in tax increases. And the stimulus bill Obama claimed was needed to avert ‘disaster’ and ‘irreversible decline?’ It will shrink the economy over the long run, since its ‘increase in government debt is expected to displace or “crowd out”. . . private capital.’”
2. BUSINESS
Debate continues over the plan to tax some Wall Street bonuses at 90%.
CEI Expert Available to Comment: Adjunct Analyst Fran Smith on where the heavily-taxed financiers may be going next:
“A different take on possible effects of lawmakers’ rabble-rousing on TARP bonuses [is provided by] Jeffrey Goldfarb at breakingviews.com. [Goldfarb] says that driving out talented financial executives in the U.S. may be a boon for foreign-owned banks in the U.S. in getting new talent, but most especially for London and its global financial powerhouse, the City. Sarbanes-Oxley already caused financial institutions to flee New York for London. The 90 percent tax rate on TARP bonuses might provide a new impetus for savvy executives to relocate.”
3. ENVIRONMENT
A new Gallup poll finds that a majority of Americans rank economic growth higher than environmental priorities.
CEI Expert Available to Comment: Energy Policy Analyst William Yeatman on why we should be sure something is a problem before we start spending money to solve it:
“Fighting the supposed problem of ‘global warming’ might or might not be a good idea. After all, it hasn’t warmed in almost a decade, despite a steady increase in global greenhouse gas emissions. The much-vaunted ‘scientific consensus’ failed to predict steady global temperatures, and they can’t explain it, either. So it seems there is some uncertainty on global warming. What is certain, however, is that reducing emissions also reduces economic growth, by making energy more expensive.”
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