Obama Won. Why Would Anybody Think There Would Be Spending Cuts or Entitlement Reform?
I just have to laugh. I’m watching Fox here at the top-of-the-hour break. They got Ed Henry, their White House reporter, they’re talking to Megyn Kelly, and the question is, “Will there be any spending cuts in the fiscal cliff?” There will not be any spending cuts in the fiscal cliff. At best there will be reductions in the rate of spending growth if there is even that, but Obama won the election. The Republicans are in the cave profile. Why in the world would anybody think that there is going to be spending — Dick Durbin, the Democrats, are all out there saying there is not gonna be any entitlement reform. Social Security, Medicare, Medicaid not even on the table. So they’re gonna kick the can down the road. Not gonna solve anything here.
The best way to understand this fiscal cliff, don’t look at it as a way to try to create economic growth. This is more redistribution. It’s higher tax rates on the middle class, not just the rich. Another big myth.