6/26/2012

OBAMA AND THE EUROPEAN CASE



European leaders are promoting policies to balance their budgets based on what they call "Austerity". Their choices follow the idea that to solve their debt crisis they need to raise government revenue, by increasing taxes and expanding the government size.
For example in Italy PM Mario Monti, supported by the major parties in the Italian parliament, introduced a new property tax called IMU, raised sales tax, and imposed a new tax on gas.
This of course is hurting the economy and guess what, government revenues are getting lower and lower, the national debt is getting higher and higher and the Country is falling into a new recession.
Obama and the Democrats are trying to link the austerity measures adopted in Europe to the conservative policies. That's a dirty trick because we have a completely different vision: we support a limited government size and of course a simpler and more reasonable tax code to promote investments and economic growth.
As we know Obama and the Democrats are used to tell lies all the time, that's why we have to speak aloud and make the point.
The key to get out of this muddy economy is to focus on long term policies, limiting the government size and pushing for a simpler tax code able to attracts new investments. The president instead is proposing policies not so different from what European leaders are using for their crisis, with terrible results. He knows that raising taxes during this frail economic recovery would be a dangerous mistake that would doom the growth as it is happening in Italy.
The only reason he is pushing for these policies is to stir up a warfare within the Nation dividing it into two opposite sides and trying to get political benefit from it.