February 6-7, 2010 - A Failure of Leadership and Management [56:41m]: Play Now | Play in Popup

This weekend, Sara Mohsin joined me on the program. Sara is the co-owner of a small business called Mohsin Mortgage Corporation. Sara and I discussed President Obama’s proposed $3.8 trillion budget and the response of the American people to the current state of our economy. Sara spoke as both a small business owner and a lender to businesses and families. The bottom line is that President Obama’s budget dramatically increases spending, putting the United States Government on an unsustainable spending trajectory into the future. Sara said that from her perspective the tax increases imbedded within Obama’s budget will translate into lower investment and spending by both families and businesses. Sara and I agree that Keynesian economics simply do not work. Taking money away from ordinary people and businesses in the form of increased taxes and borrowing which must later be repaid (so the government can spend more on political priorities like tunnels to casinos and free cell phones for low income people, etc. etc. etc.) does not grow the economy, it shrinks it. People spend and invest their own hard earned money much better than government which acquires that money through coercive taxation.

President Obama’s proposed budget includes a record $1.6 trillion deficit for fiscal year 2011! This deficit is $300 billion greater than last year’s deficit which was driven by what were originally supposed to be one-time measures to fight the financial crisis and economic recession! And even with optimistic estimates for economic recovery, the President’s budget will still create deficits in excess of $1 trillion for each year into the foreseeable future. The bottom line is that under President Obama and the Democratic Party controlled Congress, U.S. government spending is completely out of control! In November we must send as many of these liberal progressives packing as we possibly can! Read more »