One hundred economists signed a statement denouncing Barack Obama’s economic policy. The list of of economists includes 5 Nobel Prize winners, Gary Becker, James Buchanan, Robert Mundell, Edward Prescott, and Vernon Smith.
The noted economists state That Obama’s promised tax hikes and protectionism will “reduce economic growth and decrease the number of jobs in America.”
The statement continues, “It was exactly such misguided tax hikes and protectionism, enacted when the U.S. economy was weak in the early 1930s, that greatly increased the severity of the Great Depression.”
Obama’s proposals “run a high risk of throwing the economy into a deep recession” by slowing trade and investment.
The statement concludes: “In sum, Barack Obama’s economic proposals are wrong for the American economy.”
Chester Spatt, a former chief economist for SEC and is a finance professor at the Tepper School of Business at Carnegie Mellon University, noted his belief that Obama’s positions on free trade would be harmful to the economy.
“I feel that free trade is incredibly important to our market and that low taxes are very important,” Spatt, who worked for the SEC for three years until 2007, said. “Those are very central issues to our economy.”
Michael Porter ’69, a Harvard Business School professor who identifies himself as a “centrist,” said “The statement opposing Obama’s economic thinking is clear and stands on its own.”
Porter further explained in his e-mail, “Obama’s economic ideas are not pro-growth nor focused on wealth and job creation. Instead, they are more about redistribution, protection, and trading off economic success for other social agendas.”
In response to the Obama’s camp suggestion that they could hold off on the tax hikes until his second year in office, instead of his first year as promised, the economists said that would make no difference.