Barack Obama Encourages Handout and Dependency Mentality

Author: Rory B. Bellows

In other words, Barack Obama is encouraging the American people to keep whining. In a response to McCain economic advisor Phil Gramm’s comments that America is a nation of “whiners,” Obama told people they should expect the government to steal other people’s money via taxes and give it to them in the form of handouts. Senator Obama declared “It isn’t whining to ask government to step in and give families some relief.” Sorry Senator, demanding that government fix your problems is whining.

Asking for handouts is whining.

Senator Obama’s economic policies can best described one way: insane. We have a negative savings rate in this country. Savings = wealth. What is Senator Obama’s economic proposal? Raise capital gains taxes, raise the top marginal tax rates and do nothing about corporate taxes. Senator Obama wants to make it more difficult for the people who can afford to save to do so. Without savings businesses can’t grow. They can’t set aside money for capital expenditures. If wealthy people do not have an incentive to invest, then companies will hire fewer workers and not raise wages. Senator Obama wants to use the income tax to confiscate money from the people who can save to give it to people who by their very low income nature cannot save. They will use that money to consume. We don’t need policies that encourage consumption.

Consumption is how we ended up in a credit crunch and a so-called housing crisis. Senator Obama claims we are in a recession. We are not yet, but I do believe we will be in one by next summer. Senator Obama believes the answer to a recession is to make it harder for businesses and individuals to invest, hire new workers and pay their existing workers higher salaries.

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2 Responses to “Barack Obama Encourages Handout and Dependency Mentality”


  1. 1 Allen Taylor July 11, 2008 at 10:34 am

    Nice writing. You are on my RSS reader now so I can read more from you down the road.

    Allen Taylor

  2. 2 Anonymous July 11, 2008 at 1:36 pm

    Actually, consumption helps alleviate recessions. Keynes was a huge proponent of shifting aggregate demand to combat recessions. Savings only affect long term economic conditions, and even then they require stable short term conditions. Businesses may have increased savings, but they will not necessarily turn those savings into investment unless they feel confident in the market. And if families don’t receive relief, businesses will feel that consumption will be low and thus have less of an incentive to invest. This isn’t to say we shouldn’t encourage saving, but it just goes to show we need a healthy balance of both, and that an increase in consumption may be the first step of a road to recovery. As for capital gains, the main problem is that it’s not adjusted for inflation. Raising the capital gains tax would be much more tolerable for investors and businesses if their illusory gains were not taxed, and their real ones were.

    And no, families being relieved by the federal government are not whiners. Government has an obligation to help its citizens. I doubt the writers of this site or most people know what exactly it is to live in a cycle of poverty. It is a condition in which government relief is only a small fraction of a much more grand solution.Obviously, there is a line we must draw to make sure taxes are not being used to drastically change economic situations, but income tax redistribution and the idea of higher taxes on those who make more do have their merits, economically and philosopically. I’ve noticed this site talks a lot about the woes of government spending , but very little about how government expenditures is a component of GDP and can actually help create jobs and raise salaries. However, it can also crowd out investment, which is something we don’t need at this moment. There are a lot of nuances in politics and economics that we must understand to move forward, and to simplify everything into one ideology that praises extreme government nonintervention and “rugged individualism” is both an insult to logic and intellect.


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