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The New Administration


What’s Ahead for the First 100 Days

Economist Stephen Moore served as a senior economist on the Congressional Joint Economic Committee, founded and served as president of the Club for Growth from 1999 to 2004 and is now on the editorial board of The Wall Street Journal. He is the author of The End of Prosperity: How Higher Taxes Will Doom the Economy— If We Let It Happen. In a presentation on economic policy and the new administration, Moore asserted that controlling Congress will be the central challenge facing President Barack Obama.

“Studies of the last 50 years show very clearly that the worst combination for the economy and stock market is when the Democrats hold Congress and the presidency at the same time,” said Moore. “And right now they have towering majorities in both houses.

“To have a long-lasting Democratic governing majority he must basically keep people like Nancy Pelosi, Harry Reid, Henry Waxman and Charlie Rangel under wraps,” he added. “And that will be very difficult because they will be like tigers let out of a cage right now. They’ve been waiting for this for a long time.”

Calming a nation rocked by the financial industry’s meltdown and ongoing economic crisis will require getting the monetary system under control and keeping tax rates low, added Moore. “President Barack Obama can simply hold a press conference and say, ‘I’ve decided I’m not going to raise tax rates and I’m not going to raise the capital gains dividends or income tax rates,’” he said. “You would see a 1,000-point rise in the Dow. So that’s what we’ve got to keep hounding Obama on: keeping those rates low.”

The following are excerpts and charts from Moore’s presentation on the likely impact of the new administration’s proposed economic policy on Corporate America and the nation’s economy.

 

About Jennifer Pellet

As editor-at-large at Chief Executive magazine, Jennifer Pellet writes feature stories and CEO roundtable coverage and also edits various sections of the publication.