Another Bad Idea From Obama
February 7th, 2010In his quest to destroy private sector jobs in America, Obama has proposed another idea that will cut more jobs in businesses. He seems to have a grand plan to make the government the only employer other than trial lawyers and lobbyists. Government jobs are union jobs and the dues get raked off the top and Obama and the other Democrats get their share. It keeps Obama’s best friend Andy Stern happy(SEIU Union President).
In his 2011 budget he has a little clause, “reform U.S. International Tax System”. This little idea will rake in $122.2 billion from multi-national U.S. corporations in the next decade. The U.S. already has one of the highest corporate taxes in the world. This will not create jobs, it will reduce jobs. See studies by leading economists from Harvard and University of Michigan show multinationals add support jobs in the U.S. when they expand overseas. When McDonald’s and Walmart they add jobs here when they grow overseas. These are intelligent advisers, not community organizers. Much of the job expansion here is manufacturing related. As U.S. companies add business overseas they produce more goods here, Procter and Gamble, e.g.
This doesn’t even consider that some U.S. multi-nationals may just say, screw it, we’ve had enough of America’s war on business, and we’re moving. All the tax bases leaves except for profits created here in the US and all the jobs go too.
Mr. Obama is putting the two biggest job producers in the penalty box. Foreign corporations with U.S. subsidiaries and U.S. multi-nationals. Good move, Mr. President. Makes as much sense as closing Gitmo.
America needs to do just the opposite, give incentives for both of these groups to do more business, invest more capital, and hire more employees here.
Cleaning up Obama’s mess for his successor in 2012 will be like following the horse patrol in the Shriner’s Parade. There will be no place to step.
Tags: jobs, obama, taxing multinationals
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Obama Keeps Spending
February 6th, 2010Want a laugh? Go to the following site: Outsource.pdf It’s a combination of my issues with HP, earlier blog, and my disgust with our President.
With all the economic problems facing local, state, and the Federal government in 2009, one might think the spending at all levels would go down. Household spending went down dramatically. But, recent articles show the state and local spending was level for 2009. With revenues down, how did they do that? Two ways, they ran deficits and they used stimulus money to cover shortfalls. So, stimulus money did save and add jobs, they were just all government jobs. Federal spending went up 22% by most accounts. More government jobs added. It will go up again in the 2011 budget, if passed.
Today, 25% of this country’s GDP passes through the government to be spent by the government. In 2011, taxes will go up, spending will go up, and the deficit will will up. The deafness in Washington is astounding. The people are demanding smaller government and less spending and Obama is responding with bigger government and more spending. This man is spitting in the face of the majority of the population and saying,” I will do what I choose to do and you will like it.” Worse yet, this budget will pass, showing the Congress is saying the same thing.
Somehow, someway, Obama must borrow almost $2 trillion to finance his budget. That’s over double what the Chinese owe us now. Which is more than we have loaned the government our purchases of government securities. One way to protest is to stop buying government securities. At this point, why buy them anyway? The leadership has clearly shown that they have no clue. The biggest lender, China, has fired a couple shots across the bow about fiscal judgment, only to be ignored. What will China do next? Lend us more, or let us sink.
Pundits and economists are divided about what direction this economy is headed. Bulls say the worst is behind us and cite the 4th quarter GDP gain of 3%. They always add, unemployment lags the economy. Bears say the market pessimism ratio has reached 45%. This has been climbing. Investors see the Federal debt and deficit piling up and the new taxes on business and people making over $250K, and see storm clouds. Someone is right and someone is wrong. FDR went to war with business during the Great Depression and history says it extended the misery.
Tick tock, the clock is ticking for the mid-term elections. The American people will have yet another opportunity to send a message to Obama about bigger government and more spending. Unless the economy turns on a dime, I suspect he will hear this message.
Tags: 2010 elections, China debt, federal budget, government jobs, obama, spending
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Are Unions Destroying America?
February 5th, 2010I’m not talking about private-sector unions. In the private sector, unions lost 10% of their membership in 2009. That’s 771,000 fewer workers to have dues deducted to support Democrats. Total membership is 15.3 million. Lot’s of influence for 5% of the population. Once they were 35% of the population.
It’s the public sector unions doing the big damage. Sure, the UAW destroyed GM and Chrysler, but the public sector unions can destroy the entire country. Local, state, and federal government workers are now 51.5% of all union workers. They grew in 2009.
Look at every local, state, and federal plan to cut expenses. Almost none ever address reducing union employees. In Arizona they are closing state parks rather than lay off union workers. California and Chicago reduced hours, but no layoffs. Are we to believe there is no waste, redundancy, or unnecessary jobs in the public sector? Any businessman could cut 25-50% of the public jobs and you would see no difference in services. Politicians threaten to cut police and fire first. Businessmen would never cut there first.
The teacher’s unions in America are taking our once proud educational system and turning it into Chrysler. Fighting charter schools and accountability testing and hiding behind tenure, they handle education like it was done 60 years ago. Duplicate school board, excessive Superintendents, and administrative staff creates huge waste. No one can lean on a shovel longer than any public works employee.
In California the pensions for retired union workers is killing the budget. The same is true for local pension obligations. In California the average retired state union worker is getting $100,000 a year in pension payments.
Does any of this begin to sound a little like GM? The cost of retired workers at GM was adding so much cost per new car built than the company couldn’t compete.
How can this work? You can’t fire existing union workers to balance federal, state, and local workers. And you can’t afford the bill for the ones who have already retired. Both are overpaid. Revenues are down and the only way to balance the budgets is to cut essential expenses rather than deal with the real problems.
Another problem we will leave to our grand kids to fix?
Tags: California, chicago, Private sector loses 10% union workers, public sector grows, teacher's union
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If Obama Endorses it, it Won’t Work
February 4th, 2010We got exactly what we deserved by electing a community organizer president. With zero experience in the real world, his thought processes are severely flawed. Every idea, every plan, every program he has put forth in the first year has bombed. Every one.
His first big idea, close Gitmo. Not only is it not closed, it may never close. Why? More than likely they are going to try the thugs he proposed to try in NYC there. How was that for an idea? Cost maybe a billion and disrupt a major city.
He raised the minimum wage. We now have 1.6 million teens out of work. A record since statistics have been kept.
The stimulus bill. Local and state governments have not reduced expenses. How can they do that with revenues down so much? They have been able to dodge cost cutting by getting money from the stimulus bill. Most businesses have had to cut severely, but thanks to Obama, local and state governments, in total, were at the same place in 2009 as 2008. Good work, Mr. President.
Card Check, Obama’s big payback to Andy Stern. No where. Despite Stern’s thirty visits to the White House. last year.
Cap and trade. No where. Probably never in this country as Europe is pulling back from their billions they flushed with that plan.
Health care reform. No where. Done, in it’s present version.
Buying GM and Chrysler. Toyota has a safety problem. The UAW goes to Obama(the UAW really runs the country, you know) and squawks because the plant Toyota shut down with the faulty accelerator problem was the only UAW plant Toyota has. Ray LaHood said Tuesday”We’re not finished with Toyota and continuing to review possible defects and monitor the implementation of the recalls”. Then he said: “if you have a Toyota, park it.” That he later recanted. Lot’s of recanting in the Obama administration. Where does he get these people? It’s the Obama, kick ‘em when they’re down program. The US auto industry is in trouble. The government benefits if Toyota suffers. The UAW calls the shots. This is what happens when the government goes in the car business. Toyota gets reamed by the owner of two of the three competitors. It’s illegal as hell, dumb as hell, but Obama will still do the number on Toyota for the UAW. Chrysler will fail for sure. GM, probably.
Let’s look at loaning Brazil $2 billion of your tax dollars for their offshore drilling. George Soros wanted it. Next to the unions, George tells Obama what to do. We borrow the money from China, lend it to Brazil to drill offshore, and curtail offshore drilling here. Why not loan Chevron a few billion to drill in the Gulf?
Obama let Harry Reid close down the nuclear storage facility in Nevada. Now, he wants more nuclear plants here. But, the permit process is two years. Where will the waste go with Yucca Mountain stopped?
Obama stepped up the EPA clean air and water standards. Now, the states don’t have the money to comply. So, he will have to back off or many states will be in non-compliance due to necessary budget cuts.
Helping Chicago win the Olympics. Bad idea.
In the private sector, if Obama were a top executive, he would already be long gone. No one with this kind of judgment lasts where judgment counts.
I am open to suggestion. Can anyone name one idea, program, proposal, or plan Obama has put forth that has worked?
Tags: Andy Stern, cap and trade, card check, Chrysler, Gitmo, GM, health care reform, LaHood, minimum wage, obama, terrorist trials, Toyota, UAW
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Government’s Can’t Cut Costs
February 8th, 2010I reside in two states, each for part of the year. Both states are in dire financial straits. Arizona, where former governor and head of Homeland Security, a total incompetent and devout follower and adherent of Obama’s ideology, Janet Napolitano, left the state broke. And, Illinois, where the former governor, Rod Blagojevich, was too busy selling Obama’s senate seat to govern, left the state broke. One gets promoted for her incompetence and the other will just be another ex-Illinois governor to do prison time. And, you think we need political reform in this country?
I have observed, first-hand, how both states have tried to keep from running out of cash.
Illinois, first, the new governor, Pat Quinn, tried to raise income taxes. No dice. Then, he threatened to cut critical resources, like police, etc. Then, close state parks, etc. Things people really notice and care about. Never, never, any real discussion about the thousands of dolts that sit in offices and do virtually nothing or duplicate what others do, or, worst yet, add time and money to projects that would create jobs. If all of them went away, no one would notice. Or, to contract out government services, like motor vehicles. No, we don’t do that.
At every turn the media jumps on any proposal to cut expenses and make a plea to keep whatever it is. They go out to where 10 people protesting and film it and show it at 5 and 10PM. So, the politicians back off.
Arizona, same picture. Plan here was to add to sales tax. No dice. Cut critical things like police. Closed all the state parks.
Every proposal, media uproar. You see, the media lives in some world we don’t know. A world where money grows on trees and everyone deserves everything from the government. Talking heads don’t have to think, just read the teleprompter. Look at Obama.
So the cycle goes like this. No money in the budget. Try to raise taxes instead of cutting expenses. Usually that works. In today’s climate it isn’t working. Except in Washington, and the price for that will come in November. So, let’s have endless legislative sessions to discuss cost cutting. Start with the most critical areas for the public. Then, maybe, just maybe they will buy tax increases. Lot’s of media attention. But, the public isn’t buying the tax idea. If we cut the critical, we will all be gone in November. So, let’s really try to cut non-critical. More media coverage. Damn, we may get voted out for cutting non-critical expenses.
Now, it’s move to let the other guy cut. Keep my district out of the blood bath. Then, I can go home and tell the voters how I saved the jobs and programs in my district.
Now, we all see the truth. The way our political system works or doesn’t work today, all elected officials at all levels believer it political suicide to cut expenses. But, they fear it’s equally risky to add taxes. Again, except for Obama, who is so clueless, he will take the whole party down with him.
Checkmate. We, the voters have our elected officials in checkmate. With the media keeping them at bay on cost-cutting and the public on tax increases, they have no real options.
Until, we the real public, reward politicians for real cost-cutting, they don’t see any gain for the pain. Until we turn off the talking heads who are berating the cost-cutting and ignoring the fact that there is no option, we are the real reason cost cutting can’t happen.
I’ve written about Sheriff Joe, here in Maricopa, County, Arizona. Sheriff Joe epitomizes real cost-cutting. Need more jail space, just put up another tent. Price of food going up, just grow more with prison labor. Need revenue, just take over animal control from the county, do the job for 50% less budget, and do it better and turn it into a revenue generator rather than a cost area. Feed inmates for $3.50 a day, since they add value by doing work. Go out and clean the roads for the county.
The media and the local politicians hate Joe. Why? First, the media believes no one should be incarcerated in tents. Their ideology aligns with the ACLU. Remember, everything anyone wants should be provided by a benevolent government, even for convicts. So, the state of Arizona is broke, the City of Phoenix is broke, and the country of Maricopa is broke. If Joe is voted out or leaves, the country will need, mostly from the city and state, millions of dollars to build jail space. Millions of dollars to increase food budgets. More county jobs to clean up the roads Joe’s people clean. The animals will go back to the country and the budget will double. Who wins?
The media and the ACLU, certainly not the public. Banging away at Joe every day of the year, the media has damaged his approval rating and he might lose if he runs next term. Won’t that be a good thing?
This is a simple example of who stops expense cutting in government. First, it’s all risk and no reward for politicians. Next, it’s much easier to raise taxes and keep the expenses and avoid the risk. Third, if all else fails get help from the indifferent current federal administration. That worked in 2009, but may not work this year. Fourth, if you try expect bad media coverage. Last, if you have do it, try to make sure the other guy does it , not you.
Tags: arizona, Blagojevich, government expense, Illinois, media, Napolitano, raising taxes, sheriff joe
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