By Peter Ferrara on 12.5.12
Stop that cringing! I can already see the light at the end of
the tunnel. And it's not pretty for today's neo-Marxist Democrat
The man you see before you as your President today bears a
striking resemblance to the main character in a Greek tragedy. He
so reeks of hubris. Every word that drops from his lips speaks a
haughty derision of the lesser beings not benighted to be a cog in
his political machine. All witness Obama the Magnificent, the
conqueror of America, which was the world hyperpower, but is now
the Sick Man of the 21st Century, en route to terminal illness.
Middle class beware. Did you not hear four years ago Obama the
Magnificent bewail that America with 4 percent of the world's
population consumes 25 percent of the world's resources? So
unfair, you know, the magic incantation of the Obama
Regime. He told us that "we just can't keep driving our SUVs,
eating whatever we want, keeping our homes at 72 degrees at all
times regardless of whether we live in the tundra or the desert,
and keep consuming 25% of the world's resources with just 4% of the
world's population, and expect the rest of the world to say you
just go ahead we'll be fine."
The sloppiness in El Primo's thinking there is revealed by the
phrase "the world's resources." But America in reality
never consumed any of the world's production. It always
only consumed 100% of America's production (including what it
traded some of that production for).
That is why previous American Presidents would have
said, you got a problem with the American standard of living, you
just address your complaint to the Seventh Fleet. But under Obama,
America does not even have a Seventh Fleet anymore. We barely even
have a First Fleet, and that is doomed to the sequester budget
guillotine, on the same road as America's formerly dominant nuclear
So much for America's former morally embarrassing global
military dominance. And Obama has the same solution for America's
former morally embarrassing overconsumption. Reduce America with 4
percent of the world's population to consuming just 4 percent of
the world's resources, a decline of 84 percent from its former
standard of living. That would be fair, in Obama's eyes.
Richard Trumka, call your office.
The Obama Timeline to the Dustbin of
History Conservatives who want to fight back should
start with Obama's Second Inaugural Address and his 2013 State of
the Union. These will be grand pronouncements of neo-Marxist
principle and strategy. Books should be written unwinding them.
They will be monuments to the Obama tactic of Calculated Deception,
i.e., taking advantage of what he is sure a majority of Americans
do not know, and what he calculates the Democrat party-controlled
media won't tell them.
But in his hubris, and self-deception, Obama will plant the
seeds of his own demise in the words of those addresses. Every
paean to the middle class should and will be written in stone and
compared to subsequent performance. Every promise to the poor and
working people will be stored for future reference as the impact of
Obamanomics on the poor and working people unfolds.
At about the same time, the first shoe will drop -- the 2014
Obama Budget proposal. This will outline what America's socialist
future will look like under the Grand Vision of the Great Marxist,
as the numbers crunchers effectively force Obama to confess that he
wants higher taxes to pay for higher spending, which is what the
budget will show. Check out in particular CBO's long-term
projections of federal spending, and the national debt. They will
show Obama is proposing the so-called Swedish socialism of the
government taking and spending more than half of the entire GDP.
(Even the Swedes have grown past Swedish socialism.)
Since the end of World War II, two-thirds of a century ago,
federal spending has been remarkably stable at around 20 percent of
GDP. But in his budget, Obama will propose doubling and even
tripling that over the long run, as CBO's long-term projections
will show. His budget will also propose national debt spiraling
well beyond even what has trashed and ruined Greece, as CBO's
projections will also show. In other words, Obama's hubris will
lead to worse than a Greek tragedy.
These will be simple indicators of the socialism that has taken
over the modern Democrat party. But if you want a simple indicator
of why Obama is indeed a Marxist, you can find that in what he
repeatedly says about his own tax policies. In a world where,
according to official IRS data, the top 1 percent of income earners
pay 39 percent of all federal income taxes, three times their 13
percent share of income, and where the middle class, the middle 20
percent of income earners, pays less than 3 percent of all federal
income taxes, while earning 15 percent of income, Obama wants to
raise all income tax rates on "the rich," so that they will pay
what he sees as their fair share.
To a normal person, the fair share of federal income taxes for a
top 1 percent earning 13 percent of income is 13 percent of the
taxes. For a Marxist, the top 1 percent earning 13 percent of the
income while paying only 39 percent of the income taxes is
unfair because it is only fair for the top 1 percent to
pay most of the income taxes by themselves.
A normal person would see that policy as social theft. But a
born and bred Marxist would see that as social justice, because it
is unfair for the top 1 percent of income earners to even
exist. Their income and wealth is not earned in the Marxist view,
but stolen from The People. So it is only fair that the people
steal it back.
Don't believe it? Then ask the Obama Administration for their
explanation as to why their tax policy is fair. If they say they
want everyone to pay the same tax rate, then why are they not for
the flat tax? And if that is their standard of fairness, why are
they not proposing tax rate cuts for "the rich"? According
to the CBO, based on official IRS data, the top 1 percent pay an
average federal tax rate of 29 percent, taking into account
all federal taxes. The middle 20 percent of income
earners, the middle class, pays an average federal tax rate of 11.1
percent. The bottom 20 percent of income earners pays an average
federal tax rate of 1 percent.
Warren Buffett, call your office, which is the headquarters of
the largest tax shelter in the world. The more Obama raises tax
rates on the rich, the more will flee to Buffett's tax shelter,
which protects investors from precisely the capital gains taxes,
and taxes on dividends, that Obama is raising the most. Buffett is
laughing all the way to the bank, but if you are middle class, or
poor, the joke is on you, as we will see.
The Second Shoe Drops The second shoe to
drop will be the budget proposal of House Budget Committee Chairman
Paul Ryan, which will come a month later, and will be adopted by
the full House. That budget will propose to maintain the long-term
historical average of federal spending at 20 percent of GDP, under
which America prospered as the mightiest economic engine in world
history. It would eliminate most of the deficit after just a few
As CBO's long-term projections will show, the national debt
as a percentage of GDP would stabilize, and then begin a long-term
decline, avoiding the Greek tragedy.
That would be accomplished, moreover, without a single American
suffering. Ryan's pro-growth, modernizing, entitlement reforms
would be better for the poor and seniors than the current,
old-fashioned, outdated, tax and redistribution entitlement
programs, and all of their perverse incentives, that end up hurting
the poor and seniors. Find me a single American who would be a
living example to the contrary.
At the same time, the Ryan budget will propose individual and
corporate tax reform with sharply lower tax rates for
everyone. The difference will be made up by closing tax loopholes,
even without counting the resulting boost to economic growth. That
economic growth would produce more tax revenue on net, which would
eliminate the deficit entirely within a few years. In fact, in a
thriving, grown up, completely honest country, these tax reform
proposals would be scored on a dynamic basis, which would allow for
even lower tax rates, producing even more booming economic
As Ryan has proposed in the past, these reforms would include a
10 percent income tax rate for families earning less than $100,000
a year, and a 25 percent rate for families earning more. It would
reduce the federal corporate income tax rate to 25 percent, close
to the global average top marginal corporate rate.
These will be
wildly popular proposals.
You might say this will all make no difference. The exact same
has happened each of the last two years, and it made no difference
to the American people. No one noticed.
That was the fault not only of the Romney campaign, or of the
Republican Party. It was the fault of the conservative movement
more generally. Why did that movement not rise up, drive home the
truth to the American people, and hold Obama and his Democrats
accountable? We have been ringing those alarm bells right here in
this column for two years. But not only has the Democrat
party-controlled media failed to take notice. Most of the
conservative movement has as well.
But this time more shoes will drop, shoes of reality that will
do the job the conservative movement failed to do, and that Obama
and his neo-Marxist Democrats will not be able to evade.
Do Not Ask for Whom the Bell Tolls First,
the Republicans themselves will get more feisty, I kid you not. A
month or two after the Ryan budget goes public, House Ways and
Means Chairman Dave Camp (R-MI) will have the proposed tax reforms
written in legislation, scored, and introduced. His Committee will
vote the proposals out to the House floor soon after that. The
House will pass them.
That will demonstrate the falsehoods that have been told
alleging that these Republican tax reforms "do not add up." When
that happens, conservative media, the Tea Party, and grassroots
conservatives should start calling for those fake "journalists" and
misleading "commentators" in the Democrat party-controlled media to
Of course, Harry Reid's Senate will ignore the House passed tax
reforms, just as it will Ryan's House-passed budget. Indeed, the
Senate will continue to break the law, by failing to pass any
budget at all, or even to try.
This is where House Speaker John
Boehner can man up, by literally suing Harry Reid for
failing to obey the 1974 Budget Act, which the then
Democrat-controlled Congress enacted. Indeed, Boehner, who is just
about the only person who would have standing to sue, should file a
class action on behalf of the American people. The case of John
Boehner and the American People v. Harry Reid can ask the
court to enjoin payment of all Senate salaries until the Senate
complies with the law. Win or lose, the case would dramatize and
drive home the point to the American people.
But that is only the beginning of the Greek tragedy that will
rapidly unfold, and engulf the Obama Administration and the
Democrat party. About that time America will begin to miss the Bush
tax cuts, really really bad. In his hubris, Obama will maintain his
non-negotiation ploy of my way or the highway over the extension of
the Bush tax cuts, and the fiscal cliff, with sweeping tax rate
increases for the nation's job creators, investors, and successful
small businesses, and no specific, proposed spending cuts at all.
The Republicans will not take the bait, and the Bush tax cuts will
expire in their entirety.
That is when the American people will recognize that Bush cut
taxes for all taxpayers, including the middle class and working
people, contrary to Democrat and liberal mythology propagated at
such wildly overrated media institutions as the New York
Times and the Washington Post. Obama and his
controlled media bloodhounds will say that the resulting tax
increases on the middle class are the Republicans' fault for
refusing to go along with Obama's Marxist tax policy. But even the
Republicans and the conservative movement will not be able to screw
this one up. For even they will be able to retort that the Bush tax
cuts were Republican tax policy enacted into law by
Republicans, and it took Obama and his new Marxist
Democrat party to let them expire.
The Democrat Depression Even worse for
Obama and the Democrats is what the reality of life will be like
without the Bush tax cuts. All those soaring rate increases, along
with Obama's abusive regulatory policies, soaring federal spending,
deficits, and debt, and the Fed's continued mischief, will
definitely drive the economy back into recession next year. So far,
the Democrats' Marxist Obamanomics has produced the worst economic
recovery from a recession since the Great Depression. But for the
economy to go back into recession before there has been any real
recovery from the last one now four years ago will be
widely recognized as the Depression 2.0.
During the Depression decade, the recovery from the first
downturn was better than the recovery America has suffered under
Obamanomics. But the renewed recession so soon after the first one
drove unemployment back up, and wages and incomes down still
further, and put the Great into the Great Depression, in the words
of Amity Shlaes.
And that is what next year will bring with renewed, double-dip,
recession. Unemployment will soar back into double digits, above
even the prior post-Depression peak of 10.8 percent. The deficit
will break new world records, soaring past $2 trillion. The
national debt will spiral further out of control, bringing the
lifestyle of Greece to America. Poverty will set new
post-Depression records. Wages and incomes for the middle class and
working people will plummet further.
Where will it all end? The same place it ended last time. Reagan
gave us Peace Through Strength. Obama will give us what his idol
Roosevelt gave us, War Through Weakness.
America won World War II by driving up the national debt to an
all time American record of 109 percent of GDP. But Obama in his
second term will have run up the national debt beyond that, even
without any war, while he unilaterally disarms our nuclear
deterrent, which the American people have now empowered him to do
as our Commander in Chief.
I am consequently predicting that America's foreign enemies,
seeing America has trashed its defenses, and cannot even finance a
war to defend itself, will be tempted beyond resistance to attack
the American homeland. The result will make 9/11 look like a mere
skirmish. The Great Marxist will then politically have turned into
The Great Pumpkin.
Thank you, "Progressives." You will then really have transformed