{"id":30675,"date":"2008-10-21T01:01:01","date_gmt":"2011-05-19T03:15:06","guid":{"rendered":""},"modified":"2011-05-19T03:15:06","modified_gmt":"2011-05-19T03:15:06","slug":"obama_and_the_democrats_think_capitalism_doesn_t_work","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2008\/10\/21\/obama_and_the_democrats_think_capitalism_doesn_t_work\/","title":{"rendered":"Obama and the Democrats Think Capitalism Doesn\u2019t Work"},"content":{"rendered":"
\n

RUSH: Obama was just — what? — ten, 15 miles south of us this morning. He was down in Lake Worth, Florida, and this is among the things he said.<\/p>\n

OBAMA: Yesterday I heard Senator McCain say I\u2019m more concerned with who gets your piece of the pie than with growing the pie. But make no mistake about it, after eight years of Bush-McCain economics, the pie is shrinking. It\u2019s not growing. That means lower wages and declining incomes, plummeting home values, rising unemployment. So we\u2019ve seen what happens with their policies. We\u2019ve had an eight-year experiment. We see where it leads. This economic crisis is the final verdict on that failed leadership. It is time to try something new.<\/p>\n

RUSH: All right, now, none of that\u2019s true. But what is the ‘something new\u2019? We\u2019ve had eight years of tax cuts; we have had eight years of profound economic growth. It wasn\u2019t until Democrat-inspired crises in the home mortgage industry surfaced that the economy took its sharp turn. Don\u2019t buy into all this, folks. The last six years, last seven years have been an economically robust time in this country, when you consider what we had to deal with. We had to deal with a recession that Bush inherited coming out of the Clinton years, and then 9\/11 happened. We had to rebuild the economy after that. We had tax cuts; people\u2019s incomes grew. The economy expanded. The pie did grow. Health care spending went up; government spending went up.<\/p>\n

Everything was going up, and then all of a sudden this Fannie Mae-Freddie Mac stuff hit. That\u2019s when everybody thinks… This is the challenge McCain has. Because there\u2019s no doubt that to the extent that there are people unhappy out there, it\u2019s because of the economy; and the natural tendency is to blame the party that holds the White House, in this case Bush, i.e., Republicans. But this economy is directly traceable to Democrats from Jimmy Carter to Bill Clinton on, to Barney Frank, to Chris Dodd, the whole mess of them. McCain is going to have to tie them together. I just don\u2019t see him doing it. He still rips on these Wall Street greedsters, and he does reference government corruption. <\/p>\n

Well, the government corruption is what led the Wall Street greedsters doing what they were doing, and the bankers doing what they were doing. It was Democrat policy that forced these loans to people that had no business paying them back. Now the Democrats are out whining and moaning about tens of thousands of people will soon be homeless because of this and we\u2019ve got to do something about it. Well, what\u2019s ‘the thing\u2019 we have to do? We have to raise all of our taxes to bail out these people who are going to be foreclosed on. We\u2019re working on the audio of this right now. But the challenge McCain has here is to peg this economy to Democrats and their policies, because that\u2019s the culprit. They are the culprit. <\/p>\n

Obama says, ‘McCain says, I\u2019m more concerned with who gets your piece of the pie than growing the pie.\u2019 He doesn\u2019t deny that, by the way, in this statement. ‘Make no mistake about it, after eight years of Bush-McCain economics the pie is shrinking. It\u2019s not growing.\u2019 Only in the last quarter can you say that the economy has not grown! The economy has grown, GDP has grown throughout the past seven years. Only in the past quarter or so has it slowed down to the point… We\u2019re not even in a recession! Obama can\u2019t even be up front about this. Lower wages, declining incomes? Wait \u2019til you see what his tax increases will cause in both of those categories. Plummeting home values? I wonder why that happened? That\u2019s traceable straight back to the Democrat Party. <\/p>\n

I know a lot of you people think I\u2019m just being partisan. I\u2019m not. Being factual with you here. All of this that\u2019s happening in the home market is brought about by all these subprime loans that were given to people had no business being given loans because they never had the opportunity to pay \u2019em back. It was what Barney Frank called ‘affordable housing.\u2019 What we\u2019ve had is not an eight-year experiment. What he\u2019s talking about is capitalism doesn\u2019t work. Capitalism doesn\u2019t work. We\u2019ve got to find something new, and what is that something new? Some people call it socialism. I don\u2019t know if that resonates with a lot of people. Pretty much what Obama is going to do is punish every achiever he can find. I don\u2019t care how much income you earn, you\u2019re going to be punished for earning it. Here, Barney Frank, closing bell, CNBC yesterday, Maria Bartiromo, ‘Do you want to encourage Obama to pull in his spending plan a little bit?\u2019<\/p>\n

FRANK: Well, I think at this point there needs to be a focus on a — an immediate increase in spending and I think this is a time when deficit fear has to take a second, ehhh — a second seat. I do think this is a time for a very important kind of dose of Keynesianism. Yes, I believe later on there should tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax at a — at a point down the road, and recover some of this money.<\/p>\n

RUSH: ‘Recover some of this money\u2019 by taxing some rich people down the road. ‘A lot of very rich people out there whom we can tax at a point down the road to recover some of this money.\u2019 He\u2019s talking about the deficit spending. He wants new spending. He wants the government spending like drunken… (well, I don\u2019t want to insult sailors) and to fix the deficit spending that occurs. They will raise taxes on ‘the very rich at a point down the road and recover some of this money.\u2019 Now, I know a lot of people have a resentment for the rich. A lot of people say it\u2019s just unfair and so forth. But you have got to change your attitude about this. The old American dream was becoming rich. The old American dream was becoming the best you can, experiencing the greatest amount of prosperity possible. The Democrats have succeeded in tarnishing these people and making them evil and making them the enemy of the United States. This is what Obama means when he talks about trying something new. Maria Bartiromo then said, ‘Do you think we\u2019ll actually see this market return to focusing on fundamentals earnings news like the quarterly numbers that we\u2019re talking about right now in the near future, or do you think that we\u2019re still very focused on the stimulus plans and alleviating this troubled banking system?\u2019<\/p>\n

FRANK: I obviously hope we will get back to the fundamentals. I think it\u2019s clear that the fundamentals are better than the psychology.<\/p>\n

RUSH: What? What did he just say? He just said, ‘[T]he fundamentals of the economy are better than the psychology.\u2019 Thank you, Congressman Frank, for opening up and being honest. Now, when John McCain said this, the Obama campaign went out and reamed him a new one. McCain said, ‘The fundamentals of our economy are strong.\u2019 ‘That just shows how out of touch that old man is,\u2019 they said. Now here\u2019s Barney Frank admitting, ‘the fundamentals are better than psychology,\u2019 meaning the economy is in far better shape than what you people have been led to believe and what you have soaked up. Barney Frank even said so. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Now, here\u2019s Obama once again talking about the pie, mentioning that McCain\u2019s accused him of not wanting to grow the pie, said this in Lake Worth, Florida. Don\u2019t forget, Michelle Obama, they don\u2019t want the whole pie, she told a woman, ‘There are some who do but most Americans feel blessed just being able to thrive a little bit, but that\u2019s becoming more out of reach. The truth is in order to get things like universal health care and a revamped education system somebody\u2019s going to have to give up a piece of their pie so that someone else can have more.\u2019 Barney Frank, once again, yesterday on CNBC.<\/p>\n

FRANK: Well, I think at this point there needs to be a focus on a — an immediate increase in spending and I think this is a time when deficit fear has to take a second, ehhh — a second seat. I do think this is a time for a very important kind of dose of Keynesianism. Yes, I believe later on there should be tax increases. Speaking personally, I think there are a lot of very rich people out there whom we can tax at a — at a point down the road, and recover some of this money.<\/p>\n

RUSH: This is just — folks, how can anybody who hears this not be affected by it? In the first place, look at the deficit spending these bailouts have already added. Now he wants to spend even more, cementing the Democrats\u2019 hold on the electorate, and to make up for the difference, ‘They\u2019re plenty of rich people out there we can tax down the road and recover some of this money,\u2019 that we\u2019re going to spend. Bartiromo then said, ‘You agree taxes should go up, then, for the top earners, even in this slow environment?\u2019<\/p>\n

FRANK: No, not right away — I — I –I want to wait a year for that.<\/p>\n

BARTIROMO: Did you ask him to push the plan back, then? Because he wants to raise tax as soon as he gets in office, correct?<\/p>\n

FRANK: Well, I don\u2019t think he has said recently he\u2019d do it as soon as he gets into office. I do think that we can incur a short-term deficit increase and not raise those until later in the year.<\/p>\n

RUSH: One of the premises of the Obama campaign is how out of control the deficit is and how irresponsible the Bush administration has been with spending. And here\u2019s Barney Frank who wants to ladle it up, load on even more spending and then raise taxes on the rich down the road, ‘There are plenty of rich people out there we raise taxes on. We can get that money back, but we don\u2019t want to do it next year. We want to give the deficit spending a time to work.\u2019 Now, the point about this is, he\u2019s admitting that it\u2019s not a good idea to raise taxes in a slow economy. That\u2019s what he\u2019s saying. So if it\u2019s not a good idea to raise taxes in a slow economy, why is it a good idea to raise taxes any time? If raising taxes in a slow economy is going to retard economic recovery, wouldn\u2019t raising taxes in a good economy slow it down? Especially the kind Obama\u2019s talking about. Obama\u2019s talking about marginal rates on achievers, not just the rich. <\/p>\n

You\u2019ve got to get this word ‘rich\u2019 out of your mind. He\u2019s not talking about the rich; he\u2019s talking about achievers. And, by the way, he is going to cut into your Social Security benefits. Democrats are out talking about how McCain\u2019s going to cut Medicare and so forth. We\u2019re going to go into great detail on this as the program unfolds. Some people have taken in-depth looks at Obama\u2019s tax plan and he\u2019s been out there saying 95% of the American people going to get a tax cut. We now found out how. He\u2019s going to give money away. He is going to call stimulus checks tax cuts, even for people who do not pay taxes. And people said, ‘How are you going to give a tax cut if people don\u2019t pay income taxes?\u2019 ‘Well, everybody pays payroll taxes and we\u2019re going to give \u2019em a payroll tax credit.\u2019 Well, you know what the payroll tax is. That\u2019s what funds Social Security. May I have the attention of all of you seasoned citizens? You damn well know, I\u2019ve talked to enough of you, you don\u2019t even want your own kids getting a tax cut because you\u2019re afraid it will incur negative results on your monthly Social Security checks. <\/p>\n

I\u2019ll never forget that woman that called from somewhere off the Mass Turnpike, was all upset that somebody was going to cut taxes because it would mean less Social Security to her. So listen to this. If Obama is going to make sure that people who don\u2019t pay income taxes get a tax cut by giving them a payroll tax credit, that means that less money will be pouring into the Social Security trust fund, i.e., the lockbox, and that is going to have a negative impact on Social Security benefits, that\u2019s how he\u2019s going to do it. Algore ought to be coming out of the woodwork saying, ‘I can\u2019t support Obama. He\u2019s messing with my lockbox.\u2019 That\u2019s exactly what Obama is going to do. That\u2019s how this is going to happen. Now, on CNBC this morning a show called Squawk on the Street, cohost Mark Haines was interviewing Eugene Ludwig, the former controller of the currency and now a Wall Street executive and Obama supporter, and they are discussing how many homeless will be produced by the housing crisis.<\/p>\n

HAINES: What homeowners are being thrown out of their homes?<\/p>\n

LUDWIG: Ten thousand a day, I\u2019ve been told, the initial rate is huge.<\/p>\n

HAINES: Here\u2019s where you run into a political problem in my opinion because an awful lot of people, I mean they are mad enough that we\u2019re bailing out, they perceive we\u2019re bailing out Wall Street, now you want them to bail out their neighbor who lied, probably lied on his mortgage application and couldn\u2019t afford the house he bought.<\/p>\n

LUDWIG: Mark, I realize that this is not necessarily popular politically, but in fact a lot of these people were victimized. They were sold products by unregulated institutions, mortgage brokers, people thought they were getting one thing, got another, and we really have to show compassion here. We have thousands, tens of thousands, hundreds of thousands of our fellow citizens that are going to be on the street. That\u2019s not acceptable in America.<\/p>\n

RUSH: This is an Obama supporter by the name of Eugene Ludwig, who once again is lying through his teeth. ‘They were sold a bill of goods, they were sold products by unregulated institutions, mortgage brokers, people thought they were getting one thing and they got another.\u2019 Nothing could be further from the truth. There were not greedy, predatory lenders. I\u2019m sure there were some but this whole thing that we\u2019re talking about here was brought about by the fisted, big hand of government demanding these loans be made to people who couldn\u2019t qualify for them. And now you hear an Obama supporter, what does he say, 10,000 a day are being thrown out of their houses, he\u2019s told. Where are these 10,000 a day on the street? You seen \u2019em? 10,000 a day for how many days? Ten days, 20 days, 30 days? We got 300,000 people out there on the street? Now, where are all these homeless people? Where are they, Mr. Ludwig? So we\u2019re back to making all this up. Now we\u2019ve got a crisis, people being thrown out of their homes because of greedy Wall Street people. This is all traceable to the Democrats in Washington. <\/p>\n

Folks, if we could get rid of the Democrats who were responsible for this problem, the Republicans would win this election in a landslide. And so now Mark Haines gets it exactly right. Now we\u2019re going to start bailing out these people who were the victims of all of these horrible products, they were lied to because we have to show compassion. So we\u2019re not only going to bail out the banks and bail out the Wall Street firms, whoever we\u2019re bailing out, now we\u2019re going to bail out all the people being foreclosed on. And guess who\u2019s going to pay for that? You are. Do you realize how little money we\u2019re all going to have left after Obama gets through taking from the achievers of this country what he needs? This is stunning stuff! A brief time-out. We\u2019ll come back. Joe Biden now on the front pages and the lead item on all the Drive-By network programs over his promise yesterday that Obama will be tested in his first six months because world terrorist dictator leaders think he\u2019s weak. <\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: The gasoline price now is officially below three dollars a gallon. The national average is below three dollars a gallon. In some parts of the country it\u2019s two and a half dollars. Some places, in the Midwest. You remember when Obama said he was happy with gas prices at four bucks a gallon? Remember it got up to four bucks, Obama said he was happy with that. He just didn\u2019t like how fast the price rose, but he was happy with the price at four bucks. Now, one would have to assume that Obama is unhappy today with gas prices now tracking down toward $2.50, $2.25 a gallon. What will Obama do to get gas prices back up to where he likes them? He wants expensive gas just like he wants higher taxes. <\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: Obama was just — what? — ten, 15 miles south of us this morning. He was down in Lake Worth, Florida, and this is among the things he said. OBAMA: Yesterday I heard Senator McCain say I\u2019m more concerned with who gets your piece of the pie than with growing the pie. 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