President Obama, in a speech today, made it clear that he will not back down with regards to extending tax cuts for the wealthy. In response, the Dow Jones Industrial Average closed down 185 points at 12,571. Since election day, when the market closed at 13,112, the market has lost 541 points or 3.7%. The President may not think raising taxes on the wealthy has any effect on the middle class but for all of those retirees who have 401Ks and other investments, the declining market will hurt the middle class as much and more than the wealthy. Let me be clear, raising taxes is not necessarily a bad thing, as we need a full-on approach to reducing the deficit, but now is not the time. The President should agree to keep all of the Bush tax cuts in place and if this time next year, the economy is still growing and unemployment is under 7%, then raise taxes. We are literally at the point where another piece of straw may indeed break the camels back. Investors are concerned about the so-called fiscal cliff which will drive the economy back in to a recession. Few, if any economists would disagree with that statement. The President spoke in a speech about a clear message sent by the American people in re-electing him regarding tax increases on the top 2%. However, if the market continues its slide and the unemployment rate remains at or climbs above 8%, he might change his tune. Incidentally, while he’s standing by his promise to raise taxes on the wealthy, poverty has jumped under this President’s regime. Black and Latino unemployment remains among the highest in the country.