While President Obama this week will proposed another $50 billion in spending on roads, bridges, smart grids and other pork projects in an effort to save and create jobs, consumers will react by cutting their spending because they know that Obama will pay for his $50 billion binge by increasing the Federal budget deficit and debt and by increasing taxes. More government spending and higher taxes on the 50% of Americans who pay income taxes and buy the most stuff will kill jobs.

Obama Democrats don’t get it that by increasing spending they aren’t creating jobs, they’re killing jobs. They’re showing that they haven’t learned that the spend and tax binge that they’ve been on since they took control of Congress and Colorado’s government in 2007 has stopped consumer spending in its tracks.

And when consumers get scared of the government’s economic policies and go on a massive, years-long buying strike, small employers suffer. They don’t sell houses, cars, home remodeling projects, vacations, home and car maintenance services or advertising and marketing services. People cut back on going out to eat, attending sporting events, music lessons for their kids and on buying expensive clothes and electronics (other than iPhones and iPads).

Consumers are smarter than Obama Democrats. They see the train wreck that Obama Democrats are making us face. We’re already in a major financial crisis and recession, and despite some optimism that we’ll avert a double-dip recession, consumers know that we’re walking a fine line because Obama Democrats have been mismanaging the U.S. economy for going on six years.

A definition of insanity is doing something that doesn’t work over and over again. Obama Democrats’ economic policy is to tax and spend, tax and spend and tax and spend.
That’s insanity, and American consumers know it.

So they’re not buying. When consumers don’t buy, zero taxes and Obama’s small business lending bill—which would turn community banks into small Fannie Maes—, won’t get employers, small or large, to hire more workers.

Until Republicans can reduce or take away Obama Democrats’ power to spend and tax and increase the Federal debt, consumers will pay off their debts and save for the next economic crisis.

Unless Obama Democrats stop scaring consumers, consumers will vote with their dollars and unemployment will grow.

LINKS:

Small businesses feel squeezed by Obama policies, by V. Dion Haynes.

The small business tax hike and the 97% fallacy, by Kevin A. Hassett and Alan D. Viard. Also available at http://www.aei.org and http://www.opinionjournal.com.

What is Small Business Jobs Act? The Business Word, 8.30.2010.