ASU financial professor says Obama's plan will dig us deeper in the hole

United States
October 23, 2008 9:17am CST
Many people think the sound of Obama's financial plans sound great, especially to the poor. His plan is to increase taxes for the upper classes and use that money to pay for things available to the lower class. But an Arizona State University financial professor says "It sounds great, but we tried that during the Great Depression, and (President Franklin D.) Roosevelt kept digging us deeper and deeper and deeper into the hole," The professor also has this to say about Obama's tax plans: "That's going to require staggering tax increases which will collapse the economy." The article says McCain's plan has the best chance of saving jobs and it will jumpstart the economy. "People like to work hard and make more money," Sanders said. "The more money they make, the better they like it. They should be able to keep more of their money." For the full article go here: http://ktar.com/?nid=6&sid=971133 What are your thoughts?
3 people like this
7 responses
@redkathy (3375)
• United States
24 Oct 08
Well I disagree with Mr Obama. I am not a support of the extreme left or right. I fall somewhere in the middle and I think Mr McCain does too. I know what the dems are really proposing, that is to give more money to those who don't try hard or who use every excuse not to get into the race. I am all for helping people. I try to help everyone, even when I really can't afford to. It's a darn shame when someone who doesn't even pay taxes gets a tax refund! And with this new "idea" of Obama that check will be even larger. Of course middle America will foot the bill! Shame on the dems for using the smoke and mirrors trick! The professor is correct!!!
2 people like this
@ClarusVisum (2163)
• United States
23 Oct 08
Most economists favor Obama. "Eighty per cent of respondents and no fewer than 71% of those who do not cleave to either main party say Mr Obama has a better grasp of economics. Even among Republicans Mr Obama has the edge: 46% versus 23% say Mr Obama has the better grasp of the subject." -- http://www.economist.com/world/unitedstates/displaystory.cfm?story_id=12342127 Also, don't forget that McCain was for a progressive tax before he was against it: "archived MSNBC videotape from 2000 further demonstrates how McCain’s tone has shifted on taxes and what constitutes socialism since the end of his last presidential race. Answering questions during a Hardball College Tour show in October 2000, McCain defended the progressive tax system when questioned by a town hall participant who warned that the high tax bracket of her father – a doctor – smacked of an inching towards “socialism and stuff.” McCain said that progressive tax systems are based on the fact that “we feel, obviously, that wealthy people can afford more.” He spelled out this response: “Here's what I really believe, that when you are -- reach a certain level of comfort, there's nothing wrong with paying somewhat more.”" -- http://firstread.msnbc.msn.com/archive/2008/10/21/1577609.aspx His whole tax plan now is just another erratic flip-flop from his 2000 days.
1 person likes this
• United States
23 Oct 08
So politicians aren't allowed to change their views every so often? I know I personally have changed my views a million times over the past 10 years. I was once a fierce democrat, then became republican while keeping a few liberal views. Now even those few liberal views are changing to conservative. So if I'm allowed to change my mind as I grow and learn, why can't a politician?
1 person likes this
@Taskr36 (13923)
• United States
23 Oct 08
Nicely done Ladluna. I'm pretty sure Clarus is used to being proven wrong byu now. Expect Clarus to change the subject in 3...2...1...
1 person likes this
• United States
23 Oct 08
The fact that most economists nationally are Democrats should say plenty all by itself. Besides, the proof is in the pudding. McCain supports the same type of tax policy Bush implemented, and look where that got us. Time for a change.
@bdugas (3581)
• United States
24 Oct 08
I agree and I believe that he is naive and weak and trying to go back to the Carter years and we all know what that did to us. These so called programs cost money and he wants to add another 920 million to the debt as soon as he gets in. His taxes on taking from the rich and giving to the poor sounds to me like Socialism, Obama has the idea that your money is really his, and he should decide at what point in life you are making too much so he will tax you and take the money and spread it around. I read an article that said that 2 of his programs that he want to implement has to do with companies his wife's friends own and a couple that his wife has interests in. Now where do you think he is going to spread the money, it isn't going to be to the poor. What is the use of working hard to get where you are and someone come along and say I think you making too much so now I will tax you and take your money. You can not jump start the economy from the bottom up, and his idea that government will create jobs, since when did government start creating jobs. Jobs are created by people opening new businesses, and if he is there to automatically jump on you for higher taxes, those tax rates will only increase the cost of the product to the public. They must get this money back some way and raising the cost of the product is the first step, laying off is the next and eventually moving the company to another country is the final. This man has no idea, of what this country needs and I am afraid with the new voters the first time ones that don't under stand what is happening or what this country needs is going to put us farther into the hole, Obama lives in a dream world where his wealth is all he can see. He don't care about Joe the Plumber, or any one else, he is going to give Joe a tax break, that is his way of going around the bush about what he will do when he gets into office. I think Joe has brought out into the open what Obama's plans are. I don't need Joe's money. what insentive is he givign the people that want to buy into the business or create their own, only to be saddled with a tax bracket they can't survive under.
1 person likes this
• United States
24 Oct 08
That is so true. It will be a scary world if Obama is elected into office.
1 person likes this
@iriscot (1290)
• United States
24 Oct 08
Well it looks like the kat and several others are totally brainwashed. Figure your own tax refund, here is the Obama calculator: http://taxcut.barackobama.com
@ladyluna (7004)
• United States
23 Oct 08
Hello Katsmeow, If one takes the time to go to Sen. Obama's own website, and review his "Full Obama Tax Plan", a few things become very apparent. http://www.barackobama.com/pdf/taxes/Factsheet_Tax_Plan_FINAL.pdf First, there a number of assumptions, though not very many details in Sen. Obama's "Full Plan". And of course, we all know that the 'devil's in the details', right? For example below is just one of Sen. Obama's proposed tax changes: "Married Couple Making $75,000 with two children, one of whom is in college $3,700 [includes $1,000 Making Work Pay; $500 universal mortgage credit; and $4,000 college credit net of current college credits]" But wait ... why does the analysis make assumptions about that married couple's life? What if that couple earning $75k/yr. has no children? Or, what if they have adult children who are not in college? What if that couple has been VERY responsible and have paid off their mortgage early by making the sacrifice of applying extra principle payments? Well, in that case, that responsible couple will be punished versus the couple outlined in Obama's plan. Why? Why would Obama want to punish responsible Americans? Doesn't it seem rather punitive and dominating?
1 person likes this
• United States
23 Oct 08
I have found that problem with many of Obama's plans. They all sound great, but I don't often see or hear about how he plans to implement them and what that would mean for our economy. Where's the fine print?
2 people like this
• United States
24 Oct 08
I've so many times urged people to just go to McCain's site and go to Obama's site and read the ISSUES section. I don't see how people can trust what is written in Obama's Issues section. As you both say, he makes a good talk, but then you stop to think and realize he basically said nothing.
1 person likes this
@laglen (19779)
• United States
23 Oct 08
I agree. If we let this run its course, we can bounce back so much better. When the government wants to throw money at things, what happens? We pay for it. This isn't their money to throw around. We need to let them know that we don't want them doing this. What Roosevelt did, kept us in recession so much longer than we should have. Big Government needs to get out of this!
@di1159 (1580)
• United States
23 Oct 08
You mean the hole can get deeper????? Lol... I'm so confused with the entire situation that I don't know what plan is better. Everyone has an opinion and a lot make sense so its hard to tell who is right. I guess we all just have to hold our breaths, brace ourselves and pray for the best.
• United States
23 Oct 08
We should be doing a lot more than praying. If you're confused you should be reading up on the issues, doing a ton of research, and asking some questions to get the real answers. Then you need to vote!!
2 people like this
@iriscot (1290)
• United States
23 Oct 08
Wait a minute.... who is trying to snow who here? I lived through the "great depression", Hoover did nothing to help the situation, he had the same theory that the republicans are using today. The "trickle down" theory does NOT work. FDR had nothing to do with the collapse of the stock market and downfall of the economy. The stock market went belly up in 1929, FDR wasn't in office as President at that time a republican named Herbert Hoover was. Roosevelt put people back to work and the depression was so deep that it took several years for the economy to recover. When I was 5 years old my uncle, who was a mechanic worked on a person's car for two days in our driveway (by the way our whole family had to move into one house in order to survive, my aunts, uncles and their spouses including my grandmother and grandfather) putting as few new parts in it as possible, and he got it running like a top. He charged the man $1.25 for his labor and thought he was overcharging him. They took the $1.25 to the store and bought pork steak. We hadn't had any meat to eat for 3 days. They salted down the meat to keep it from spoiling. People who didn't go through the depression that was caused by the "trickle down" policies of the republican party at that time, have no idea what it was like. My grandfather who was a car dealer and mechanic, lost everything but his tools due to the depression, he repaired a car that was owned by a variety store merchant, he didn't get paid for his work with money, he got us some toys for Christmas that year. I got a wind up train and my sister got a doll. Don't tell me about what Roosevelt did and didn't do during those times, I lived through it.
• United States
24 Oct 08
I can't understand why this professor is referring to FDR being president during the Depression, UNLESS he meant to say AFTER the Depression on the road back... which I have heard many times from people who were living in the Great Depression. But I do know that I agree with his end result, even tho i don't see how he came up with it, since he seems to have the President wrong. Nevertheless, Obama's plan will give us big trouble, regardless of who was President during/after the Depression. McCain is not just trickle down, and Bush's policies are NOT what landed us where we are.