Obama’s China syndrome

Obama wants higher taxes for top income earners. The top 5 percent of taxpayers already pay 60 percent of all income taxes, but that is not enough for Obama. He is afraid if these rich people are allowed to keep more of their money they will save and invest it.

He wants lower taxes for the less affluent because we will take more money to Walmart, Kmart and Target and purchase products made in China. His preference is not to invest money here but to spend it and send it to China and other foreign countries.

Personal consumption peaked in the fourth quarter of 2007. While our economy tanked, personal consumption fell less than 2 percent, but has now recovered to set a new high in the second quarter of 2010. Obviously, consumption does not drive the economy. In contrast, private investment peaked in the first quarter of 2006, has since fallen more than 35 percent and has still not recovered.

Investment is needed to modernize equipment, develop new technology and fuel economic growth. This is something Obama and his economic advisers don’t understand.

David Wordinger

Medical Lake