With the DOW now having reached an absolutely abysmal 11 year low, it looks like the economy is continuously sliding further and further down the toilet. I have no doubt that the Democrats in congress will blame this on rich and greedy investors who refuse to shed away their hard-earned money.
The clueless masses, unaware of how economies work, will be duped by a complicit media into thinking that this mess is nothing more than the failure of Republican policies and eight years of President Bush. Emboldened by the supposed mandate, the 111th congress and the new administration will begin to practice a new branch of economics that I like to call Obama-Pelosi-Reid economics, or Oprenomics.
Years from now, economists will be discussing how significant a failure such policies were.Oprenomics will begin with President Obama telling the American people that the tax cuts promised will not be attainable in the near future. He will claim that the economy is simply too fragile to allow cut taxes, especially in light of the $700b bailout. The Democrats will, however, pass another stimulus package that will put a few hundred dollars into the pockets of taxpayers. This will generally satisfy people in the short term. Many will not get to use this money, because they will end up donating it to the DNC's never-ending campaign.
In spite of not being able to cut taxes, the Oprenomists will put into the tax code numerous refundable tax credits, swelling the number of people who pay no taxes and creating a larger welfare class who get something for nothing. Peggy the mooch will be unhappy that she still has to pay for her own gas, but the free government money will quell her rage.
Government spending will rise above 30% of GDP, and continue to increase year after year. The 22% under Bush 43 will look like chump change. To cover this, the Democrats will increase the top income tax rate to 50%, and increase income tax rates on anyone making over $100,000/year. They will uncap Social Security and Medicare taxes and raise the Capital Gains tax.
As a student of the George Soros one world philosophy, President Obama will be driven to create a carbon cap and trade scheme. Electricity output will drop as plants find themselves unable to recoup the costs. Energy prices will skyrocket, even as the world continues to cool. Hundreds or thousands will freeze to death in the northeast as their heat or power is turned off. Local governments will initiate energy assistance programs for those who cannot afford to heat and power their homes, but the burden will be too large. They will ultimately turn to the Federal government for bailouts, creating a continuous loop. Al Gore will make billions selling carbon credits, but will ultimately declare bankruptcy because the increased tax rates will leave him with nothing. The irony will not be lost on him.
Companies, unable to pay the rising costs of labor due to mass unionization from the passing of card check legislation, along with insurmountable energy costs, will engage in mass layoffs. Many will shut their doors permanently. The cost of goods will go up by necessity.
Infrastructure will suffer and eventually collapse. The United States will be inches away from being a third world country, much to the delight of the UN, George Soros and the Kos kids.
Oprenomics will prove to be an unending spiral of pain and suffering for the American people, as well as the world. I can only hope that Obama and his gang decide to steady their hand and think about the potential impact of their policies.