Weekend Post – Obama Doubles Down on Stupid Ideas

Just when I thought Obama might just leave well enough alone and just encourage conservation through words, he comes out with six pages of emphasizing the really bad part of his strategy to give the appearance of his caring for high gasoline prices.

An “Emergency” Economic Plan by Obama

Here’s just a rundown of the faults:

• Another stimulus/rebate check. This time $500 a person. This time paid for by a 5 YEAR windfalls profit tax. This isn’t temporary, it’s permanent. And what happens if there aren’t “windfall profits” four or five years from now?
• $50 billion slush fund in the form of two congressional pork troughs, a direct grant to states and a “jobs and growth” fund.
• He asks for a “reasonable share of profits”… reasonable by what definition of the word
• Obama completely ignores economics. McCain has at least admitted his ignorance on the issue, but Obama’s is completely ass-backwards in terms of economics. Imposing a tax 5 years from now is just going to make prices higher NOW and IN THE FUTURE. Suppliers are going to cut back on supply (because they can, and why take a tax hit now when you can wait 5 years and get all of the profit on pumping oil), and that’s going to raise the price of oil.
• Then there’s Obama’s construction slush fund. This is going to be spent well, and there’s absolutely no room for corruption with having $25 billion to throw around on roads and school construction.

Now, I wouldn’t have a problem throwing money at road construction, except Congress has ZERO credibility in spending the money it has now. Where was all the construction when oil prices were low (lower asphalt costs) and consumption was high (greater revenues)? Oh yeah, being sent for study upon study and mass transit systems. And not for these critical repairs Obama says are needed.

I’m now currently reading Henry Hazlitt’s “Economics in One Lesson”. It covers many of the topics involved here, including taxation and public works. Perhaps Obama should read the first 50 pages and see where that takes him. Probably nowhere, but then maybe he won’t put out drivel like this proposal.