Skousen: Obama 'Is Doing Nothing' to Help Business

Thursday, 26 Aug 2010 01:37 PM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
President Barack Obama should cut taxes instead of acting against business, says Mark Skousen, a columnist for Franklin Prosperity Report, published by Newsmax.

“I would like to see a sharp reduction in the corporate income tax, maybe a tax credit to hire workers," he told Newsmax.TV. "Extend the Bush tax cuts.”

Meanwhile, the president should rescind entitlement programs, Skousen says. “Obamacare is a disaster. You want to reduce the minimum wage and other intervention in the labor market.”

Special: Millionaire Next Door Is a Step-By-Step Guide to Becoming Wealthy

Story Continues Below



There’s a lot the White House can do to revive the economy, he says. But, “The Obama administration is doing nothing to be pro-business,” Skousen said.

“It’s raising the cost of regulation and imposing new entitlements. All of this is causing uncertainty, and it’s causing businesses to take a wait and see attitude on hiring.”

Skousen agrees with economist Nouriel Roubini’s assessment that there’s a 40 percent chance of a double-dip recession. “We’re definitely headed in that direction,” Skousen said.

Private investment and GDP growth are declining. And the Federal Reserve’s policy of keeping short-term interest rates near zero is leading banks to borrow money and simply invest it in Treasury securities rather than loaning it to small business, he says.

“It’s not going into productive investment,” he said.

The economy is recovering, Skousen says. “Corporate profits and manufacturing are responding well.” But it’s a slow recovery, unlike the V-shaped rebounds of the past.

“This is exceptional, largely due to fear of the financial crisis,” he said. “The monetary system is shaken. It will take a lot more time to recover.”

Exactly how long will depend on the Fed, Skousen says.

“If the money supply starts spurting up, we will probable see a short-term recovery. If we continue to overregulate the economy and interfere, it might be another five years.”

That would have strong political implications, he says. “It would be a death knell for Democrats. Republicans will take back Congress and probably get some positive legislation out of that.”

As for inflation, Skousen sees little evidence of it.

“Short-term there is no inflationary pressure,” he said. “If anything the market forces of deflation are stronger than the government forces of inflation.”

Money supply hasn’t grown during the past year, keeping inflation and the economy at bay. Gold is the only indicator pointing to inflation, Skousen says.

“Until the Fed goes back to inject more money into the system, we’ll be in no man’s land.”

Declassified: The Simple Roadmap That Helped Create Over $41 Billion in New Wealth

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Democratic Pollsters: Obama Hurting Hillary's Chances

Sunday, 23 Nov 2014 21:52 PM

Two Democratic Party pollsters say President Barack Obama is hurting Hillary Clinton's presidential chances in 2016. . . .

Important Medicare Changes for 2015: What You Need to Know

Sunday, 23 Nov 2014 21:13 PM

Millions of seniors will have to dig deeper to pay for their Medicare benefits next year, thanks to rising costs for hea . . .

Report: Israel Considering Military Action Against Iran

Sunday, 23 Nov 2014 19:53 PM

As the deadline for nuclear talks between the P5+1 powers and Iran looms on Monday, Israel is warning it might use milit . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved