Housing starts fell an unexpectedly sharp 5% last month, more bad news from an economy stalling out. Of course the Buffett Tax would hurt the housing sector as it removes income from those in a position to buy houses at the high end of the market, which in turn allows the segments lower down the housing ladder to thrive. Proposals to raise taxes on high income earners through caps on their charitable or mortgage interest deductions do the same thing. The president doesn’t understand this basic fact about the economy: The top must be prospering, investing and creating for the entire economy to grow.
Housing should be leading the “recovery,” but of course it is stalled under a massive weight uncertainty among high earners as well as the incoherent regulations and programs targeting the foreclosure world, and the burdens on ordinary lending put in place by Dodd-Frank. The president has done nothing to assist the housing market in three years, but he and his team haven’t figured out that housing makes the economic weather.
The Buffett Tax is the latest diversion from the central problems in the economy, and it would create additional barriers to wealth and productivity, as explained by the Wall Street Journal this morning. It is worse than useless. Its unveiling screamed to the markets that the president is either wholly incompetent or wholly indifferent to economic growth. The editors at National Review add more detail on the president’s folly.
“My view is that we should not make it harder for those who create jobs, to invest in America, and to build more jobs here,” MItt Romney said on my show yesterday. “If your priority is punishing people who have been successful, then you can vote for President Obama,” he added.
President Obama is running on a punishment platform, hoping that 50% plus 1 of voters in states equal to an electoral college majority are willing to suspend their disbelief and trust him to do other than drive the economy further down the deep canyon he has chosen.
The joke this morning is that if the presidntt has lost David Brooks, who is there left to loose? Brooks was willing to give the president a shot at fulfilling the 2008 campaign rhetoric, but in the past two weeks it has become impossible to believe a word of the old “hope and change” shtick.
Democrats must realize they are courting a historic wipe-out as this country has never rewarded either incompetence or class warfare, much less both at the same time. (And no amount of MSM cover will protect the president from a class warfare platform as obvious as hislove of golf.) The Supercommittee’s Democrats can save the Party from Obama’s rocket ride over the cliff, but whether the six Democrats on the body have the guts to do so is a very long shot indeed.