Economy

Tax the Rich: Play It Again, Sam…

Barack Obama

The problem with liars and obfuscators is that, over time, it becomes increasingly difficult to keep your story straight. Nowhere has that been more evident than in the Obama administration. Is it a tax or is it a penalty (Obama’s Solicitor General argued both sides on consecutive days before the Supreme Court in order to get the ObamaCare law upheld). Is marriage an institution pre-dating government which unites a man and a woman in a spiritual and legal union, or an oppressive anachronism based on antiquated definitions of morality? Obama has argued both sides. Are massive deficits “unpatriotic,” as he accused George Bush of being, or is it a way to stimulate the economy, as he now claims? If you like your health insurance plan, you can keep it under ObamaCare, right? Maybe not, as Obama now admits that nearly three quarters of current insurance plans will fail to meet new government standards. Is the Guantanamo Bay terrorist detention facility the symbol of America’s violation of basic human rights as Obama repeatedly claimed? If so, then why is it still open nearly three years after he promised the doors would shut?

Federal Incompetence Stifles Job

“Were we directed from Washington when to sow, and when to reap, we should soon want bread.” ~ Thomas Jefferson

Each day we see proofs of the wisdom of the Founding Fathers in the creation of a federalist form of government which gave superior authority to a central government within a very limited sphere, and left all other functions to the states, or the people. Far from being the limited government which our Founders envisioned, the federal government today is a monstrous leviathan which is equal parts incompetence and avarice. This is what happens when government attains more power. Government is the only entity legally able to use force to achieve its goals. Government is a monopoly, and therefore does not have to be efficient or innovative on order to retain its “customers.” It is essentially immune from the disastrous consequences of its decisions and actions. It can compel continued allegiance and higher payments.

A timely example of the results of government expansionism is in the continued stagnancy of our economy. In the last days of the Bush presidency, and expanded throughout the Obama presidency, the federal government took steps which would supposedly save the economy from a financial collapse (which itself was the result of government interference in the market). With the passage of the “stimulus” bill, unemployment was not supposed to reach 8% according to the Obama administration, yet it did that and more. Unemployment spiked above 10% AFTER the near-trillion dollar stimulus was passed, and stayed at or above 9% for almost three years, before dropping to above 8%, a point we were not supposed to have reached at all.

Obama: “Private sector is doing fine”

On Friday, President Barack Obama hosted a press conference at the White House to discuss the economy. It wasn’t his finest moment. In his remarks, Obama told the media that all is well in the private-sector, rather it is the public-sector that is holding the economy back. Here’s the relevant quote:

The truth of the matter is that, as I said, we created 4.3 million jobs over the last 27 months, over 800,000 just this year alone. The private sector is doing fine. Where we’re seeing weaknesses in our economy have to do with state and local government. Often times cuts initiated by, you know, Governors or mayors who are not getting the kind of help that they have in the past from the federal government and who don’t have the same kind of flexibility as the federal government in dealing with fewer revenues coming in.

It’s hard to convince many people, particularly those that will be voting in the fall, that the private-sector economy is “doing fine.” People see the news reports about tepid job creation, still high unemployment numbers, and incredibly large budget deficit. They’re no doubt wondering what planet Obama has been living on over the last three-plus years.

The press conference really could be taken as an in-kind contribution to Mitt Romney and the Republican Party. They’ve pounced on the opportunity to slam the gaffe-tastic remarks. Playing right into their hands, Obama later issued a statement emphasizing that the economy is, in fact, not doing all that well:

CBO report shows high-cost per stimulus job

President Barack Obama and Democrat have time and time again repeated the talking point that the $831 billion American Recovery and Reinvestment Act, passed in early 2009, helped save the economy, which was suffering the effects of a severe recession, and helped create jobs.

However, a new report from the Congressional Budget Office (CBO) via James Pethokoukis shows that the stimulus bill was largely wasteful considering its affects on unemployment, with a high cost for what jobs were created:

When [the American Recovery and Reinvestment Act] was being considered, the Congressional Budget Office (CBO) and the staff of the Joint Committee on Taxation estimated that it would increase budget deficits by $787 billion between fiscal years 2009 and 2019. CBO now estimates that the total impact over the 2009–2019 period will amount to about $831 billion.

By CBO’s estimate, close to half of that impact occurred in fiscal year 2010, and more than 90 percent of ARRA’s budgetary impact was realized by the end of March 2012. CBO has estimated the law’s impact on employment and economic output using evidence about the effects of previous similar policies and drawing on various mathematical models that represent the workings of the economy. …

On that basis CBO estimates that ARRA’s policies had the following effects in the first quarter of calendar year 2012 compared with what would have occurred otherwise:

– They raised real (inflation-adjusted) gross domestic product (GDP) by between 0.1 percent and 1.0 percent,

– They lowered the unemployment rate by between 0.1 percentage points and 0.8 percentage points,

The War on Memes: Let’s focus on the economy, people

A few months ago, conservatives sought to gain politically by going after the contraceptive mandate implemented by the Department of Health and Human Services. This immediately became an issue of religious liberty for conservatives because it would have required religious institutions to cover contraceptives even if it was against their teachings.

Thanks to some rather nutty comments by Rick Santorum, who openly questioned the use of contraceptives, Democrats were able to spin the issue into a so-called “war on women.” The situation was exacerbated thanks to comments by Rush Limbaugh aimed at Sandra Fluke, who had argued that taxpayers should fund contraceptives. Even though Fluke’s reasoning was flawed, taxpayers shouldn’t be forced to subsidize her contraceptives, Limbaugh’s comments were completely unnecessary and wrong.

The strategy was successful in the short-term, as wedge issues usually are. However, it eventually backfired on them when Hilary Rosen, a Democratic operative, said that Ann Romney, wife of presumptive GOP nominee Mitt Romney, had never worked a day in her life.

Romney took to Twitter to defend herself, setting off a firestorm that caused Rosen to later apologize. The argument from conservatives is that Democrats are waging a “war on stay-at-moms,” largely silencing Democrats on the issue and swinging momentum back to Republicans — at least temporarily.

Free Advice for Mitt Romney

Mitt Romney will be the Republican nominee, unless he’s caught with a dead, Muslim, illegal immigrant boy. He will have the difficult task of facing Barack Obama in November. It is no secret that I have my differences with Governor Romney, however for the sake of wanting Barack Obama gone in November, I would like to offer him some free advice.

First thing you need to do Mitt is shut up about the sports team owners you know. We know you’re rich and successful in business, but the problem is, Obama is sending out his class warfare zombies in droves. They will use your success as their best weapon against you. Their goal is to paint you as out of touch with the American people. Also, along those lines, shut up about your dog and his road trip on the roof of your car.

Second piece of advice, be bold on the economy and fiscal policy. Be specific about your proposals and don’t be afraid to defend them. Don’t sugarcoat the fiscal problems we are facing. Propose bold tax reform including a flatter tax with a lot fewer deductions and credits. Eliminate a department or two. Propose real spending cuts and entitlement reform and more importantly, sell it. Outline a free market approach to healthcare as a replacement to Obamacare. Finally, start going after the Federal Reserve by supporting an audit of it.

Third, take a page from the Obama playbook. Set up a version of their “Fight the Smears” web page that they set up in 2008. Eventually Obama and his surrogates will drag the Mormon religion in this race and there needs to be something to address the nonsense they will be putting out.

Fourth, stay out of the social issues trap. The left will try to bring up abortion, gay marriage, birth control, and Lord knows what else to try and change the narrative. Yes, address the issues when they come up but don’t let the media trip up the message. The message needs to be about the economy and jobs first.

2012 Elections: Forget the President, It’s Congress That Matters

It appears that the 2012 race for President is all but set. Mitt Romney will very likely win the Republican nomination and he will face Barack Obama in November. For those of us concerned about restoring liberty, the rule of law and the  Constitution, and getting a grips on our debt and economic crisis; this is not a joyous prospect. Neither man has a record of leadership on those issues and in fact, both men have proven time and time again to be advocates of more government, more spending, and more debt. No matter who is elected President, I’m not optimistic that our serious issues, especially concerning the debt and the economy will be addressed. We need to look elsewhere to at least hold the tide against more spending and more debt. We need to really pour our energies into the Congressional elections and electing more Constitutional conservatives and libertarians.

Every even numbered year, we have the chance to change the entire makeup of the House of Representatives and one-third of the Senate. Imagine what kind of difference we can make if we elected Constituional conservative majority in the House and give Jim DeMint, Tom Coburn, Rand Paul, and Mike Lee some more company in the Senate this go around. The only way to do that is get involved. Find a Constitutional conservative candidate in the primaries and back them and volunteer for them. If there isn’t one in your district, consider running yourself. Granted, it maybe too late in many states to do this for 2012, but consider it for 2014.

It’s Super Tuesday: Is the end of the race around the corner?

It’s Super Tuesday, and hopefully the beginning of the end of the long and disasterous primary for the Republican Party. No one can deny that this cycle has been interesting process; well, most party primaries are. But this one has been especially painful to watch — especially recently, when the economy is the most pressing issue for voters, but some of the GOP candidates are focused on wedge social issues.

It’s hard to predict what will happen tonight, but observers say that Mitt Romney will have a good night and Newt Gingrich may re-establish himself if he manages to win more delegates that Rick Santorum, which looks like a very real possibility. On the other hand, we’ve seen so many twist and turns in this primary, would anyone be surprised to see a last minute surge for Santorum in Ohio or Gingrich not win Georgia by as substantial of a margin that polls indicate?

These three candidates — Gingrich, Romney, and Santorum — are a collective mess. While Gingrich generally respected amongst GOP voters and manages to gain enough support to remain relevant, national polls show him as toxic against Barack Obama.

Santorum isn’t much different. Polls show him doing decent in head-to-head matchups against Obama, but that’s largely because voters aren’t familiar with him. His socially conservative message isn’t one that will push independents to Republicans, and his numbers would fall even lower.

CBO: Deficit to exceed $1 trillion in 2012

On the campaign trail and during the third presidential debate with Sen. John McCain (R-AZ) in 2008, then-candidate Barack Obama promised that Americans would see a “net-spending cut” during his presidency.

The claim was met with a boatload of skepticism given that Obama was proposing massive expansions in healthcare and non-defense discretionary spending; however, we all crossed our fingers that he would follow through, but we didn’t hold our breath.

The skepticism proved to be justified. Just a couple of months after coming into office, President Barack Obama told Americans that under his budget that there would be trillion dollar deficits as far as the eye can see.

He wasn’t kidding. The Congressional Budget Office released its budget report for this current fiscal year yesterday, predicting yet another trillion dollar budget deficit and unemployment hovering around 9%:

The Congressional Budget Office on Tuesday predicted the deficit will rise to $1.08 trillion in 2012.

The office also projected the jobless rate would rise to 8.9 percent by the end of 2012, and to 9.2 percent in 2013.

These are much dimmer forecasts than in CBO’s last report in August, when the office projected a $973 billion deficit. The report reflects weaker corporate tax revenue and the extension for two months of the payroll tax holiday.
[…]
If the CBO estimate is correct, it would mean that the United States recorded a deficit of more than $1 trillion for every year of Obama’s first term.

Obama’s Revisionist State of the Union, Pt. 1

On Tuesday night Barack Obama, America’s class warrior-in-chief, gave a rambling, divisive campaign speech thinly disguised as a State of the Union Address. It was short on facts and truth, but with a heaping helping of blame, obfuscation and denial of any responsibility he bears for the current mess in which the nation finds itself. This was an exercise in unadulterated narcissism, plain and simple, with very little reference to what makes America great. In this meandering diatribe, Obama used the word “I” an astounding forty-five times, “my” eighteen times, “fair share” four times, “millionaires” twice and “shared sacrifice” twice. By contrast, he used the word “freedom” once, “liberty” once, and “personal responsibility” exactly zero times. There were more than two dozen examples of Obama telling us what we should and shouldn’t do. It was all quite nauseating.

As a public service, I will once again break down the SOTU and correct the many errors and omissions contained therein. I can’t cover everything, but I’ll try to hit the high points.

“Think about the America within our reach: A country that leads the world in educating its people. An America that attracts a new generation of high-tech manufacturing and high-paying jobs. A future where we’re in control of our own energy, and our security and prosperity aren’t so tied to unstable parts of the world. An economy built to last, where hard work pays off, and responsibility is rewarded.”


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