Seeking Alpha, 23 Mar 2009, Gerard Jackson
Obama is ideologically wedded to the cult of big government. This of course requires increased taxation as well as a fundamental belief in the intellectual superiority of those doing the taxing and spending. And as we all know, Obama and his advisors are the smartest clowns in town.
Unlike leftists, conservatives tend to instinctively realise that tax cuts stimulate savings and production. On the other hand, Obama and his merry band of economic vandals who usually go by the moniker of Democrats fully grasp that significant tax cuts weaken their power to bribe and punish and so they oppose cuts with specious economic arguments.
Public understanding of the relationship between taxation and growth is very poor. When this issue comes up I invariably think of a 1993 World Bank Study that concluded that "growth drives savings rather than the other way round". Quite a few years ago Brian Toohey, a leftwing Australian journalist, used the same study, following with another study carried out by two American economists, Christopher Carroll and David Weil, who claimed to have demonstrated that rapid growth in Japan, Hong Kong, South Korea and Singapore had preceded increases in savings.
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