Douglas Rediker is Finally Proud of America; it’s a Team Obama Thing

I had the opportunity to attend an event in D.C. last week which included each candidate’s economic advisor. The forum featured Gary Gensler (Hillary Clinton), Douglass Holtz-Eakin (John McCain) and Douglass Rediker (Barack Obama). In brief summary, let’s just say that if you were not already convinced to support John McCain this session would have been the "coup de grace".

The first of many eye opening statements was offered by Barrack Obama’s representative Douglass Rediker. Besides trying to endear himself to the audience by stating his status as a “reformed” investment banker (sorry, I missed the joke along with numerous other colleagues) Mr. Rediker also offered an explanation for supporting Obama. He and his wife were effectively in a self imposed London exile because the country was racked by partisanship and headed in the wrong direction. However, Barrack Obama had a candidacy built on “telling the truth” and gave them something to “believe in”. I am guessing Douglass Rediker is of the same mind as Michelle Obama and they can now sit together, hold hands and finally be “proud” that Barrack is running. Honestly, is it a requirement for Team Obama acolytes to hate this country? Unfortunately, this was just the beginning.

Please read on.

Both Gary Gensler and Douglass Rediker spoke ad nauseam about the need to raise taxes, especially on those earning in excess of $200,000 to $250,000 per year. There were no significant exceptions mentioned for married couples or corporations and the increases expanded to all sources of income including a potential doubling of the capital gains tax. Overall, this was especially troubling since the proposals included small businesses including LLC’s and “S” corporations which produce about 70% of new jobs. The fact that our country currently has the second highest corporate tax rate amongst OECD nations didn’t seem to dissuade the Democratic Party participants who also spent some time talking about a “windfall profits tax” on companies like Exxon-Mobil (Gary Gensler said this would pay for the “gas tax holiday”). I suppose they missed the fact that company already pays twice their net income in taxes. Douglass Holz-Eakin sat somewhat bemused through the entire Democratic Party articulation. When finally asked to comment he offered “we don’t play that game” (income levels vs. taxes) and talked about common sense proposals focused on improving the tax code and shrinking the percentage of taxes vs. GDP.

Overall, there was not much to differentiate the Democratic Party candidates save their difference on the gas tax holiday. They felt more regulation was in order for the financial services industry with the impetus provided by recent market events. Gary Gensler felt that Hillary’s healthcare proposal was a “moral imperative” and necessary to competitiveness of our corporations. Douglass Rediker evoked some additional bewilderment when stating Obama’s comprehensive economic plan would depend on “what they inherited” (translation; we really don’t have a plan)

Besides opining the gas tax holiday a sensible proposal which would ease the short term disposal income challenges faced by many Americans Douglass Holtz-Eakin articulated the order of magnitude for McCain’s economic agenda. This includes less regulation, more global competitiveness, leading the world on trade, portable insurance policies (job to job), reforming unemployment/job insurance (community colleges for training, etc.) and tying oil to security with a focus on achieving energy independence. He further articulated Mr. McCain’s qualifications which included the ability to be “Commander in Chief” from day one, a history of addressing real problems including a desire to resolve healthcare challenges by solving cost issues/supporting competition, a proven ability to improve our education system, history of controlling spending, proven ability to restore confidence in government sullied by issues such as earmarks and desire to achieve real immigration reform by securing the border first (he said McCain heard the American people on the latter). Douglass Holtz-Eakin also spoke about the need for real entitlement reform and reducing the amount of taxes vs. GDP (now about 18.8%) back to about 16.5%.

Overall, from my perspective the choice appears relatively easy.