Straw Man Topples

World markets have plummeted; even oil, which was supposed to be past peak production with supplies on the way to drying up, has dropped under $50 per barrel. Demand has evaporated, not just for oil but for almost every consumer good. A cycle of deflation may prevail which the Obama tax plan would only worsen. When a luxury tax was passed on yachts and cars over $35,000, their sales contracted and the American boat industry collapsed. To stimulate demand and robust spending, taxes must be lowered. Unfortunately, Obama who does not recognize the dynamic nature of the economy does not have "tax cut" for the people who do the real spending in his vocabulary.