Larry Summers: "Tax Increases Create Jobs"

Via Gateway Pundit

Someone please take Larry Summers’ “Economist” title away from him.

Not only does the Obama Administration believe that you can spend your way out of a recession but yesterday we found out that they also believe that higher taxes fuels job growth.

The Business and Media Institute reports:

Obama’s chief economic adviser Larry Summers appeared Feb. 9 on the Fox Business Channel to discuss the administration’s economic agenda and defended proposed rate-hikes for those making over $250,000. “Almost all economists who studied these things have that kind of view,”

Fortunately Fox News didn’t let that stinker slide by unchallenged:

Perplexed, Fox News contributor Gary B. Smith replied: “it’s the biggest bunch of B.S. I ever heard … this is such a political game. , Larry Summers thinks everyone is Rockefeller living in their Newport, Rhode Island mansion. These are guys that are starting businesses, investing. You can’t give people business money to hire people, they have to have a reason for hiring these people and that’s because they see sales increasing or costs decreasing. You can’t just say ‘go hire these five people’ because the businesses will go ‘What for? I don’t have the demand!’”

Contributor Mike Norman also disagreed with Obama’s economic plan, saying, “If you want to get money into the hands of most people, the fastest, you do something that has been proposed now since this whole crisis began – and that is a suspension or significant reduction in the payroll tax. That’s where people get the most taken out; that’s something like a trillion-dollars every year that goes to the federal government – that just goes nowhere,” Norman said. “That would bring our economy back, but he’s not for that.”

I will say Larry Summers is half right. Tax increases WILL create jobs in government, but only at the expense of jobs in the private sector and at a net loss.

But then, that’s what the Obama socialists want.