I found this article insightful (see link) regarding Obama's understanding of our economy. The key to future prosperity for all is growth, and capitalism's risk/reward incentive system only works if those who take the risks get to keep enough of the rewards to provide incentive. Obama seems to have an instinct that tells him what enough is, and when enough is enough Obama will have the State confiscate the rest. Really. Check out the article. It is a quick and interesting read.
Massive redistribution leads to reduced risk taking which leads to reduce growth. We should reduce excessive spending, but we cannot cut our way to prosperity. We need to constrain spending AND grow the pie.