Obamanomics

Investors are wary of the Obama promised capital gains tax increases; workers are fearing layoffs as business cuts back on staff. Working people are finally going to learn the meaning of “trickle down economics.” The average guy has always been susceptible to the Democrats’ populist milk and honey for everyone approach to economics; that is, take money from big business and give it to people who never had to earn it. It is much harder to get one’s mind around the Republican concept of supply side economics, or Reaganomics, which the Democrats named trickle down because it is easy to demagogue the idea of creating wealth starting at the top with business and investment instead of at the worker level; that is, starting at the bottom. Well, now that concept is going to hit home because it will be demonstrated in reverse order: Obama promised to raise the capital gain tax, which will slow investment, and to raise the tax on business. Since businesses essentially do not pay taxes; they just increase prices and lay off workers to compensate for just another increase in the cost of doing business. Fewer workers spend and invest less. Higher prices force families to spend less on all consumer goods. All business suffers from car companies to restaurants. Obamanomics is on the way.