Obama Declares War on Investors, Entrepreneurs, Businesses, And More

by Larry Kudlow - February 27th, 2009 - CNBC TV

Let me be very clear on the economics of President Obama’s State of the Union speech and his budget.

He is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.

That is the meaning of his anti-growth tax-hike proposals, which make absolutely no sense at all — either for this recession or from the standpoint of expanding our economy’s long-run potential to grow.

Wall Street is in love with crony capitalism, where big government and big business make a deal to stomp out small business. The huge profits of the "Clinton" boom whetted the appetite of many (and the bust seemed not to change their minds). They acquired an illusion that free enterprise could be morphed into a phony form of corporate socialism where small businesses were bought up to eliminate competition and then huge profits from the resultant monopolies would flow into the pockets of Wall Street.

Derivatives and credit default swaps and collateralized mortgage obligations and various other scams were invented to delude the "rubes" out here in America while the "hedge fund" masters scooped up all the profits and lived like kings. As a result there was a great deal of enthusiasm for Barack Obama among those on Wall Street who thought that the glory days of the 90s would return if they put a Democrat back into the Presidency.

That illusion is coming to an end. Crony capitalism is not the goal of the socialists who back Obama. They hold the Clinton form of crony capitalism in as much contempt as they hold for free enterprise. Obama is an Alinsky disciple and he holds the middle class in as much contempt as he holds the rich. In fact, he sees the middle class as the rubes he has to deceive into supporting him to accomplish his huge remake of American society.

If you have a 401k, it is at risk from Obama from two sources. Destroying its value through the collapse of free enterprise and taking its value through higher taxes.

Obama and his socialist cohorts are at war with free enterprise. I would say America should wake up, but I am concerned it is already too late.