Opinion: In Defense of Obamanomics-WSJ

President Obama has also proposed a 10-year budget that is faithful to the progressive vision he articulated during his campaign. Laura, can't we just say liberal?

And the strong expansion of the 1900s proves that the tax rates on income, capital gains and dividends in the Obama budget will support rapid economic growth and substantial income gains at the top. Moreover, the higher tax revenues resulting from these rates will reduce the deficit by about $750 billion, bringing it down to an average of 3.9% of GDP over the next 10 years and to 3.1% of GDP by the end of the decade. This conclusion requires suspension of belief, pretending that the dot.com boom never happened as well as the Republican take over of the congress in 1994!

The rising cost of health care per patient not just for Medicare and Medicaid but throughout the health-care system is the principal driver of the government's long-term deficit and debt problems. For more than 40 years, this cost has grown much faster than the overall economy and if the current rate continues, by 2050 Medicare and Medicaid will account for about 20% of GDP, and the national debt will soar to 300% of GDP. The rising cost of patient care is primarily due to lack to patient participation in the cost of health care and the lack of tort reform. Universal coverage will result in rationing of care, it must!

Critics of a cap-and-trade system are correct when they claim it will raise the prices of goods and services whose production and use emit carbon. This is not settled science and to propose disrupting our current way of life at such a time is dangerous. Cap in trade, quite frankly, reminds me of an Enron Scheme, or think MBS.

The real risk lies in the possibility that the economy's recovery starts later and is much weaker than the economic assumptions in the budget. In this case, by no means remote, President Obama will have to adjust his plans while remaining true to his values. In a very few days in office, he has already demonstrated that he has the leadership skills to rise to the challenge. The recovery will start later and be weak. Our liberal bloggers decry President Bush's 8 years, well the "O" term has started! He owns this mess. The country is hunkering down. Cramer has it right, the greatest destruction of wealth ever. The "O" plan is predicated on the affluent willingly being led to slaughter. (No, not overstatement, look at their words and hostility) But, again, there is no dot.com boom, we are in the midst of a huge recession.

Progressive=Liberal=Welfare State=Class Warfare=Continued Recession=Government Control (for our own good)

Opinion: In Defense of Obamanomics - WSJ.com