Posted by
Kenneth Hanson on Thursday, March 19, 2009 4:09:57 PM
Obama economic advisor Jason Furman recently admitted in senate testimony that the real cost of the administration’s carbon cap and tax plan would be almost 3 times higher than they previously stated. The new number? $2 trillion. $2T drained from the U.S. economy over 8 years, or almost $9,000 per American family! And that is just one of many, many tax increases that are in the Obama budget. This will provide significant downward pressure on the U.S. economy.
In conjunction with the carbon cap and tax plan, the administration also said they are considering carbon tariffs on countries like China to “level the playing field”. China has angrily responded that they will retaliate with trade sanctions of their own. How does this all play out, you might ask? The Obama administration’s plan slows economic growth and job creation, and makes us pay more for Chinese goods while lowing exports to one of our largest trading partners, while angering the country funding our country’s deficits, which Obama plans to double in 5 years and triple in 10 years.
China has said that they are going to diversify their foreign reserve holdings (read, buy less U.S. debt) because in order for Obama to pay for his deficits, he will have to print money on an unprecedented scale, devaluing the dollar and damaging the value of China’s reserve holdings. Quite a set of achievements for just one part of Obama’s policy agenda.