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Archive for October, 2010

Eight True Things The Public “Knows”

October 27th, 2010 by Rich Szabo

A dear friend sent me a link to the Dave Johnson article: Eight False Things The Public “Knows” Prior To Election Day

At first I thought my friend was joking. I then realized he was dead serious.

That of this economic crisis, only a liberal democrat could look upon it and say, “no, no, things are really great and getting better.” They are like toddlers who cover their eyes and say “if I can’t see it, it isn’t there.” In Dave Johnson’s article he makes eye catching bold claims, but provides absolutely no documentation to support his “if I can’t see it, it isn’t there” Kool Aid swilling baseless claims. So to those like Dave Johnson who would choose to cover their eyes and remain blind and pretend it isn’t there, and keep Congress as it is, I would love to simply say then vote to keep them there and you will get what you deserve. But it is not that simple because there are too many other Americans whose eyes are wide open, who are not blind, and WE DO NOT want what YOU deserve.

One thing I think everyone can agree on is that while a president sits in the center seat, it is the Congress who approves his plans, it is therefore far more important to have a sane thinking Congress than a sane thinking president.

“The White House is not going to save the Republic regardless of who is its occupant. It has to be on Capitol Hill where the nation’s lawmakers assemble, that the decision is made on legislation which charts the governmental course of our nation. One of the most dangerous things that has happened in the legislative halls is this growing idea that the President knows it all. He writes out the program for the year and the Senate and House are supposed to say amen.” Sen. Barry Goldwater (R) Arizona, 1962

Let’s look at each point of the above mentioned article:

1) President Obama tripled the deficit. - Yes he did. Your own MSNBC even thinks so: http://www.msnbc.msn.com/id/33348615/ Obama’s economic packages consist of more than just the “Stimulus”. There is also the bank bailout, automaker bailout, mortgage bailout, and a second “stimulus” in the works. The total will be in the area of $2-3 Trillion. The National Deficit and the National Debt are two different things. The National Deficit is the amount that we are in the red this year and the National Debt is the amount total amount that the government is currently behind. The current National Deficit pre-stimulus was about $1.2 Trillion and the National Debt was about $9.5 Trillion.. The Bush Administration inherited a National Debt of $6.5 Trillion and increased it to $9.5 Trillion over 8 years (including two wars). That comes to $375 Billion in deficit spending each year (on average).

2) President Obama raised taxes, which hurt the economy.
Technically Barry did not raise taxes. Congress raised the taxes. http://blogs.abcnews.com/politicalpunch/2009/02/obamas-budget-a.html I know for a fact as a small business owner. My taxes went up last year. This year it will even be higher. Let’s take a look at just the healthcare bill. I am the owner of a small business with one employee – me.. If my company doesn’t offer it’s employees (me) health insurance, my company will be “fined” or taxed. Now, even though we get health insurance through my wife’s job, my company will get whacked just because it doesn’t offer it to it’s employees (me). Now what is wrong with that picture?

2) President Obama raised taxes, which hurt the economy. Technically Barry did not raise taxes. Congress raised the taxes.
Tax Cuts Enacted

Click on picture for full size

3) President Obama bailed out the banks. On October 3, 2008, the Senate passed the $700 billion bank bailout bill. A Democratic controlled Congress bailed out the banks. And now Barry and da Boyz gave even more money to the banks, and just recently he signed yet another bank bailout

http://www.suite101.com/content/barack-obama-to-sign-in-another-bank-bailout-hr3808-a296644

4) The stimulus didn’t work. Google “Obama shovel-ready” and you’ll find more than enough quotes of Barry describing all the people going back to work because of stimulus-created jobs. You may find one more quote of interest…  In the NY Times Magazine Obama reflects on his presidency, admitting that he let himself look too much like “the same old tax-and-spend Democrat,” realized too late that “there’s no such thing as shovel-ready projects” and perhaps should have “let the Republicans insist on the tax cuts” in the stimulus. If “there’s no such thing as shovel-ready projects”, and if you remember, he really pushed the point only he could create them…”I can say that 14 days after I signed our Recovery Act into law, we are seeing shovels hit the ground.” – Barack Obama, 3/3/09

The Wall Street Journal tells us the “stimulus” didn’t work.  It doesn’t take a rocket scientist to figure this out. It’s simple math. It doesn’t add up

Here is another Wall Street Journal Article regarding the “stimulus”. Cash for clunkers didn’t change how much people spent. It only changed when they spent. It was supposed to help the AMERICAN car manufacturers when in fact the majority of cars bought were foreign!

Unemployment figures

5) Businesses will hire if they get tax cuts. – Businesses will hire if there is demand for the service or product they offer. This goes back to #1-3. If the consumer doesn’t have the money, they are not buying. therefore, businesses are cutting back and either not hiring or laying off workers. Most of the business owners I talk to are waiting to see what happens after January 1st.

6) Health care reform costs $1 trillion. – Congressional Budget Office estimates released predict the health care overhaul will likely cost about $115 billion more in discretionary spending over ten years than the original cost projections. The additional spending would bring the total estimated cost of the overhaul to over $1 trillion. If you do the actual math, it’s even higher than that.  – ABC News

7) Social Security is a Ponzi scheme, is “going broke,” people live longer, fewer workers per retiree, etc. – According the NY Times, This year, the system will pay out more in benefits than it receives in payroll taxes, an important threshold it was not expected to cross until at least 2016, according to the Congressional Budget Office.

#8) Government spending takes money out of the economy. – Abstract: Despite decades of repeated failure, President Obama and Congress continue to promote the myth that government can spend its way out of recession. Heritage Foundation economic policy expert Brian Riedl dispels the stimulus myth, lays out the evidence that government spending does not end recessions–and presents the evidence for what does end recessions. Hint: It’s not another “stimulus package.” Click here for the article. Now, let’s take a look at how this works.  The Federal Government spends like crazy. The money has to come from somewhere. TAX DOLLARS.  So, joe lunch bucket is taxed, businesses are taxed. All the taxes take money OUT of the economy which leaves less money for people to spend.

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