Categorized | Opinion

Arthur Brooks: 80% of the new fiscal cliff revenues will go to Obama’s wealthy cronies





In a post yesterday, James chronicled the rampant cronyism which characterized the so-called fiscal cliff deal. This morning Arthur Brooks appeared on CNBC’s Squawk Box and revealed some startling facts on the same topic. Here’s a partial transcript of the interview.

JOE KERNEN: The fiscal cliff fight’s over, a battle that is still looming large. Our guest host today is Arthur Brooks, president of the American Enterprise Institute, author of "The Road to Freedom." Arthur, I want to just start just quickly with you. OK, your point — and we were talking about it in welcome, it’s good to see you — out of the $62 billion, we’ve got a trillion dollar deficit, this raises how much in revenue? $62 billion or so?

BROOKS: About $62 billion a year, $620 billion over 10 years.

KERNEN: Your work is that $50 billion out of $62 billion is to corporate cronies?

BROOKS: Yeah, the first two years, $100 billion is going to corporate cronies, payoffs to corporate clients of the government effectively. And all kinds of crazy stuff: algae producers, rum producers.

KERNEN: Renewable crap.

BROOKS: Yeah, yeah. The wind guys that are a big deal with the Obama administration. Effectively what it means is that 80 percent of the new tax revenues are going right into the pocket of corporate cronies.

KERNEN: So people that call him a redistributionist, it just sounds good to him that he’s trying to help the — he always calls them ‘folks’ I think. Rich folks got to pay a little bit more –

BROOKS: To rich folks, to other rich folks.

KERNEN: But the rich folks are actually paying to other rich folks. Redistribution from the 2 percent to the corporate –

BROOKS: The corporate 1 percent. So it’s basically the rich makers are redistributed to the rich takers. That’s basically what Obamanomics is all about in a nutshell. That’s how it works. And he talks about redistributing to poor people and working people and helping people and all that.

Think about that. 80% of the new revenues that the government will collect as a result of the fiscal cliff deal will go to Obama’s wealthy corporate cronies. I wonder what Obama’s low-information voters, to whom I referred yesterday, would think of that. Brooks, Joe Kernen and the rest of the Squawk Box crew discuss a few other things as well, including how meaningless this fiscal cliff exercise was in terms of actual deficit reduction. Click the image below to watch. It’s eye-opening.

 

 



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  • friskyness

    My blood just boils with the stupidity of the uninformed voter!!!!!!!!!!!!!!!!!!

    • sarahsupporter

       Yes we are all going to pay for their ignorance.  Obama’s always talking about being "fair"….well guess what? That’s not fair!!

    • PhilTan

      Exactly. We get the goverment that they deserve. It’s the uniformed fools who don’t pay attention unill mid October and then show up in November to pull the lever are exactly the problem. Obama spins and misleads with soundbites and they take the bait, hook line and sinker. Uggh.  

  • Freempg

    This after the Republicans got their heads handed to them with a 48/1 tax increase to spending cut ratio, and yet all the goodies go to Obama’s cronies.

    In a normal corrupt world, the spoils would have gone to the Republicans for having prostituted their (our) principles. We got doubly screwed for nothing.

  • generictrainee

    " I wonder what Obama’s low-information voters, to whom I referred yesterday, would think of that"

    "Think"?

  • misterlogic0013

    So let me get this stright .. our (taxes) money going to extremely rich people who have big corporations (listed in stock market) = Obamanomics ..  I agree .. now they want to take our guns, already have out bank accounts / CC / debt cards, our cash … sounds about right ..
     Tea Party in their way ? most likely .. anyone, anyone who defends the current GOP = enemy .. must convert immediately .. $ root of all evil .. People are scared (ascared in ghetto) = no guts no glory .. coddled young adults are, ok with, status quo.  no guts = afraid  not complicated.
      God we trust, not money, today the other way around, money not God, moral fabric, compass missing, OB leads and gets over on millions of weak followers. Weak people, followers vs. Tea Party of personal responsible types, been through the ringer, Folks ..  We win they loose .. come over to the good (sane) side …….. logical .. not complicated / doable ..

  • patnatasha

    the uninformed voter will get what’s coming to them.

  • BrianusBerkleianus

    moved

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