by David Kilpatrick
It's time for true colors to be seen. In light of the largest financial crisis to face our country since the Great Depression, McCain has decided to suspend the campaign of partisan attacks, reach across the aisle, once again, and do what needs to be done to serve the American public. After all, a Senator is a public servant, right? But, from Obama's shock at McCain's announcement that he really does put his country ahead of his party, we can see Obama's true priority: GETTING ELECTED first, while serving the country at his convenience which, with only 143 days in the Senate, he has yet to really begin doing.
For BOTH Senators to return to Washington at this time would prove their devotion to the country, but Obama will stoop to no such self-sacrificing move. He feels he would be better served if he were out giving speeches trying to motivate people to vote for him, a man with so few accomplishments, that one is really left in a sobering state of shock to realize that he could become the leader of the free world AFTER demonstrating that HIS needs and ambitions come first.
The question is simply: Is Obama still a Senator with a duty to serve the people? If so, can we ask him to do something other than vote "present" on important issues that will effect us for years to come? Or, is he already an exalted messiah that is above such demeaning things as returning to Washington to help steer the country through such dangerous and uncharted waters? He must realize, based on his past record, that if he doesn't input anything useful, he can later claim that he didn't cause the problem... and use that point to forward his career. Sadly, it's also like a race car driver refusing to steer and then claiming he could not have been responsible for the crash because his hands were no where near the steering wheel!
Obama is arguing that he can do two things at a time: maintain a back-breaking campaign/fund raising schedule AND simultaneously dedicate himself 100% to helping restore the economy. Is he so mighty? I think not. Obama is demonstrating that he is drunk with his own rhetoric! Does he imagine that his simple signature on someone else's work will suffice? Does he imagine that he is not required, as the leader of the Democrat party, to assist in finding solutions? What could be more important than attending to the crisis at had? Obama's political ambitions and quest for power? That, in his mind, is much more important than helping the country right now on Wall Street OR on Main Street and, as usual, he has no legislation offered and no ideas presented to the Senate, a body he still claims to be a member of.
One thing is absolutely certain. When this crisis has passed, as all do, thanks to the hard work and selflessness of real men like John McCain, we will not have Obama to thank. We can also be sure that if Obama is elected, we will have little to thank him for later. Simply put, his plans to raise taxes and double spending don't fit today's economic environment. On the other hand, maybe it's best that he stay out of Washington so that the real men can get things done. We can call him for his autograph later, then he can claim the credit like the clueless little boy that he is.
For Obama to remain on the stump attacking John McCain while McCain is doing what he can to help the country is a new definition of low in American politics. Obama is looking more and more like the junior mechanic who doesn't want to soil his overalls, while criticizing the man that is covered head-to-toe with the grime of getting things fixed.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Wednesday, September 24, 2008
Saturday, September 6, 2008
Obama’s Specifics for Economic Change
by David Kilpatrick
There has been a lot of talk about Obama being the agent of change, but many are asking the question, “What, exactly, does he intend to change?” His speeches are a virtual cornucopia of promises that a better life awaits us all under an Obama administration, but how will he deliver? Let’s examine some of his specific proposals relating to the economy from his web site and ask ourselves how these proposals will make our lives better.
According to the IRS: For 2006, taxpayers filed 138.4 million U.S. individual income tax returns, an increase of 2.9 percent from the 134.5 million returns filed for 2005. Adjusted Gross Income (AGI) increased from the previous year by 8.4 percent to $8.0 trillion for 2006. Taxable income increased 9.0 percent to $5.6 trillion; the alternative minimum tax rose 21.3 percent to $19.3 billion; total income tax increased by 10.6 percent to $1.0 trillion; and total tax liability rose by 10.3 percent to $1.1 trillion. So, even with a fundamentally strong U.S. economy, there are still weaknesses in job growth, the credit markets, manufacturing, and trade.
Obama Solution 1:
A Windfall Profits Tax on American oil companies to bring a $1000 energy rebate to American families.
Barack Obama will enact a windfall profits tax on excessive oil company profits to give American families an immediate $1,000 emergency energy rebate to help families pay rising bills. This relief would be a down payment on Obama's long-term plan to provide middle-class families with at least $1,000 per year in permanent tax relief.
Problem with that: Let’s do math: $1000 for each family, 140 million tax returns… that’s checks totaling about $140 billion! As oil company profits in 2007 were $120 billion, the rebates would be $20 billion more than ALL of the profits made by American oil companies… so clearly, this can’t be funded with a windfall profits tax.
Result: According to John Hofmeister, president of Shell U.S. in a recent interview on CNNMoney.com, "If our profits are taxed, that means we'll have less capital to invest in new production and it could raise gas prices." In other words, LESS SUPPLY and HIGHER PRICES, as well as a shortfall of almost $130 billion in funding the rebates.
Obama Solution 2:
Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs.
This relief would include a $25 billion State Growth Fund to prevent state and local cuts in health, education, housing, and heating assistance or counterproductive increases in property taxes, tolls or fees. Obama’s relief plan will also include $25 billion in a Jobs and Growth Fund to prevent cutbacks in road and bridge maintenance and fund school repair - all to save more than 1 million jobs in danger of being cut.
Problem with that: The Gross Domestic Product of the U.S. is $13.13 trillion. $50 billion is a drop in the bucket that directed toward government spending projects designed to “prevent cutbacks” can hardly be called a “Jumpstart”. A “Jumpstart” would normally be seen as a chance to advance, not merely hold the line. Interestingly, nothing proposed by McCain would provide for cutbacks in road and bridge maintenance or school repair, so the 1 million jobs are not in jeopardy in the first place.
Result: Two more pointless government funding projects costing $50 billion per year.
Obama Solution 3:
Provide a Tax Cut for Working Families.
Obama will restore fairness to the tax code and provide 150 million workers the tax relief they need. Obama will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family. The "Making Work Pay" tax credit will completely eliminate income taxes for 10 million Americans.
Problem with that: This is not a tax cut at all. It’s wealth redistribution. 50% of American workers pay no taxes, so “offering tax relief to those who need it most” sounds nice, but it is a nonsensical statement. Adding another entitlement to the spending problems facing the U.S. is counterproductive. Since 1965, incomes are up 35%. Since 1965, mandatory government spending is up 789%. Another government spending program is not the answer.
Result: Another government spending program costing $140 billion per year.
Obama Solution 4:
Ensure Freedom to Unionize.
Obama believes that workers should have the freedom to choose whether to join a union without harassment or intimidation from their employers. Obama cosponsored and is strong advocate for the Employee Free Choice Act, a bipartisan effort to assure that workers can exercise their right to organize. He will continue to fight for EFCA's passage and sign it into law.
Problem with that: The Employee Free Choice Act eliminates the right to a private ballot and would, consequentially, allow intimidation by unions that are trying to make workers join. Burdening businesses with more regulations in an obvious attempt to pander to the unions will not help the economy or encourage more hiring. Workers are already free to unionize and employers are already required to adhere to labor laws that protect workers’ health, safety, rights, working conditions, and fair wages. It’s not the health or welfare of the worker that Obama would fight for, but the health and welfare of big labor unions who sustain themselves on the backs of the American workers.
Result: Higher labor costs which HURT employment and the return of historic worker harassment by labor unions whose memberships are dwindling.
Obama Solution 5:
Raise the Minimum Wage.
Barack Obama will raise the minimum wage, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers earn a living wage that allows them to raise their families and pay for basic needs.
Problem with that: The minimum wage is an unfunded mandate on small businesses that offer entry level positions for teens and young adults that, most typically, don’t have families to support. Many live with their parents. Increasing the price of labor will make it more difficult for people to find jobs, not easier.
Result: Employers will hire the “bare minimum” number of employees and finding work will become difficult. We are in a global labor market and raising the cost locally will hurt us globally.
The policy of “raise taxes” and “spend more” has never been helpful during a weak economy and it is likely to cause a disaster. Obama continually wants us to remember Clinton’s era as a time of growth and prosperity, forgetting that tax revenues were falling under his higher rates and that the economy was stagnating prior to Bush’s tax cuts. The solutions he offers are either counterproductive to growth or address labor rights problems that don’t exist.
Obama's profound lack of experience leads him to make decisions based on book study rather than hands-on application and his advisors from socialist think-tanks won’t help. We can hope for one of two things: That McCain wins or that Obama changes his stands completely.
There has been a lot of talk about Obama being the agent of change, but many are asking the question, “What, exactly, does he intend to change?” His speeches are a virtual cornucopia of promises that a better life awaits us all under an Obama administration, but how will he deliver? Let’s examine some of his specific proposals relating to the economy from his web site and ask ourselves how these proposals will make our lives better.
According to the IRS: For 2006, taxpayers filed 138.4 million U.S. individual income tax returns, an increase of 2.9 percent from the 134.5 million returns filed for 2005. Adjusted Gross Income (AGI) increased from the previous year by 8.4 percent to $8.0 trillion for 2006. Taxable income increased 9.0 percent to $5.6 trillion; the alternative minimum tax rose 21.3 percent to $19.3 billion; total income tax increased by 10.6 percent to $1.0 trillion; and total tax liability rose by 10.3 percent to $1.1 trillion. So, even with a fundamentally strong U.S. economy, there are still weaknesses in job growth, the credit markets, manufacturing, and trade.
Obama Solution 1:
A Windfall Profits Tax on American oil companies to bring a $1000 energy rebate to American families.
Barack Obama will enact a windfall profits tax on excessive oil company profits to give American families an immediate $1,000 emergency energy rebate to help families pay rising bills. This relief would be a down payment on Obama's long-term plan to provide middle-class families with at least $1,000 per year in permanent tax relief.
Problem with that: Let’s do math: $1000 for each family, 140 million tax returns… that’s checks totaling about $140 billion! As oil company profits in 2007 were $120 billion, the rebates would be $20 billion more than ALL of the profits made by American oil companies… so clearly, this can’t be funded with a windfall profits tax.
Result: According to John Hofmeister, president of Shell U.S. in a recent interview on CNNMoney.com, "If our profits are taxed, that means we'll have less capital to invest in new production and it could raise gas prices." In other words, LESS SUPPLY and HIGHER PRICES, as well as a shortfall of almost $130 billion in funding the rebates.
Obama Solution 2:
Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs.
This relief would include a $25 billion State Growth Fund to prevent state and local cuts in health, education, housing, and heating assistance or counterproductive increases in property taxes, tolls or fees. Obama’s relief plan will also include $25 billion in a Jobs and Growth Fund to prevent cutbacks in road and bridge maintenance and fund school repair - all to save more than 1 million jobs in danger of being cut.
Problem with that: The Gross Domestic Product of the U.S. is $13.13 trillion. $50 billion is a drop in the bucket that directed toward government spending projects designed to “prevent cutbacks” can hardly be called a “Jumpstart”. A “Jumpstart” would normally be seen as a chance to advance, not merely hold the line. Interestingly, nothing proposed by McCain would provide for cutbacks in road and bridge maintenance or school repair, so the 1 million jobs are not in jeopardy in the first place.
Result: Two more pointless government funding projects costing $50 billion per year.
Obama Solution 3:
Provide a Tax Cut for Working Families.
Obama will restore fairness to the tax code and provide 150 million workers the tax relief they need. Obama will create a new "Making Work Pay" tax credit of up to $500 per person, or $1,000 per working family. The "Making Work Pay" tax credit will completely eliminate income taxes for 10 million Americans.
Problem with that: This is not a tax cut at all. It’s wealth redistribution. 50% of American workers pay no taxes, so “offering tax relief to those who need it most” sounds nice, but it is a nonsensical statement. Adding another entitlement to the spending problems facing the U.S. is counterproductive. Since 1965, incomes are up 35%. Since 1965, mandatory government spending is up 789%. Another government spending program is not the answer.
Result: Another government spending program costing $140 billion per year.
Obama Solution 4:
Ensure Freedom to Unionize.
Obama believes that workers should have the freedom to choose whether to join a union without harassment or intimidation from their employers. Obama cosponsored and is strong advocate for the Employee Free Choice Act, a bipartisan effort to assure that workers can exercise their right to organize. He will continue to fight for EFCA's passage and sign it into law.
Problem with that: The Employee Free Choice Act eliminates the right to a private ballot and would, consequentially, allow intimidation by unions that are trying to make workers join. Burdening businesses with more regulations in an obvious attempt to pander to the unions will not help the economy or encourage more hiring. Workers are already free to unionize and employers are already required to adhere to labor laws that protect workers’ health, safety, rights, working conditions, and fair wages. It’s not the health or welfare of the worker that Obama would fight for, but the health and welfare of big labor unions who sustain themselves on the backs of the American workers.
Result: Higher labor costs which HURT employment and the return of historic worker harassment by labor unions whose memberships are dwindling.
Obama Solution 5:
Raise the Minimum Wage.
Barack Obama will raise the minimum wage, index it to inflation and increase the Earned Income Tax Credit to make sure that full-time workers earn a living wage that allows them to raise their families and pay for basic needs.
Problem with that: The minimum wage is an unfunded mandate on small businesses that offer entry level positions for teens and young adults that, most typically, don’t have families to support. Many live with their parents. Increasing the price of labor will make it more difficult for people to find jobs, not easier.
Result: Employers will hire the “bare minimum” number of employees and finding work will become difficult. We are in a global labor market and raising the cost locally will hurt us globally.
The policy of “raise taxes” and “spend more” has never been helpful during a weak economy and it is likely to cause a disaster. Obama continually wants us to remember Clinton’s era as a time of growth and prosperity, forgetting that tax revenues were falling under his higher rates and that the economy was stagnating prior to Bush’s tax cuts. The solutions he offers are either counterproductive to growth or address labor rights problems that don’t exist.
Obama's profound lack of experience leads him to make decisions based on book study rather than hands-on application and his advisors from socialist think-tanks won’t help. We can hope for one of two things: That McCain wins or that Obama changes his stands completely.
Monday, August 25, 2008
Supporting Obama - Emotion or Logic?
By: David Kilpatrick
Senator Obama is, arguably, one of the most motivational speakers in the Democratic party. His words motivate crowds and touch hearts. His words inspire us to look past our current problems and imagine a better tomorrow. His words make us believe in a greater good and a united planet where peace, love and harmony unite with the environment. Where greed is a thing of the past and the possibilities are limited only by the power of our imaginations. He tells us that the only people that need to pay are the richest among us and that a free ride awaits everyone else. All we need to do is trust him and his judgment to lead us to a brighter tomorrow and if we do, “…the levels of the oceans will drop and the Earth will begin to heal itself.” Truly, only a great, great man would be capable of healing the wounds that have plagued mankind for so long.
The emotional reasons for following Obama on this journey are many, but unfortunately, the logical ones are few. If we examine beyond the great speeches and grand platitudes, we find that his positions are not as savory as many of us would prefer and some of them are downright silly. Is this because of profound inexperience? Many believe so. What are the logical reasons we should elect Barack Obama to the White House? What has he done, where does he stand and what does he want to do?
TAXES as a SAMPLE ISSUE:
We know that he wants to raise a variety of taxes, especially on the wealthy, but is that smart? The wealthy provide jobs and spend the most money. Will taxing them simply cause them to cut jobs and wages and/or spend less? History shows us, time and again, that that is exactly what will happen, but even as Obama denies the success of the surge in Iraq, we find that our constitutional scholar is ignoring this historical fact.
Under the Clinton tax rates that Obama wants to return to, tax revenues actually dropped starting in 2000 from $2.4 trillion until 2003 when they bottomed out at just above $2 trillion. What happened in 2003? The Bush tax cuts took effect and going into 2008, revenues have recovered to their highest levels in history at $2.5 trillion. Lower taxes did not hurt the country. The solution to our economic problem is not nearly as simple as a slight tweak of out tax burden to a lucky few among us, but it’s not so difficult to understand either.
Incomes for average Americans has increased by 35% since 1965, yet discretionary government spending has increased by 152% and non-discretionary spending has increased by a whopping 759%! How can any society maintain these types of spending increases without matching increases in wealth? The answer is simply that we cannot.
In 1850, Alexander Tyler wrote, "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury. From that moment on, the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policies followed by a dictatorship. The average age of the world's great civilizations has been 200 years. These nations have progressed through the following sequence:
From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From to liberty to abundance; From abundance to selfishness; From selfishness to complacency; From complacency to apathy; From apathy to dependency; and, From dependency back to bondage.”
Obama’s promise to lead us to dependence may sound great to the unwashed and uneducated masses and even many of the wealthy elite who stand to enrich their companies by serving the needs of the people at the request of the government through a variety of new programs, but to those of us who step back and think for a moment, the deals don’t sound so sweet.
Looking at his current positions and gathering from his statements we can put forth the following and ask ourselves if these are positions we can all agree to stand behind:
Obama's solution to illegal immigration: You need to teach your kids Spanish.
Obama's solution to the energy crisis: You need to check your tire pressure.
Obama's solution to abortion survivors: Let the abortionist pretend to be a pediatrician.
Obama's solution to health care: Free health care for all, including illegal immigrants.
Obama's solution to a sluggish economy: Raise taxes on the people who provide jobs and spend the most.
Obama's solution to the war on terror: Withdraw and wait for them to come to us again.
Obama's position on abortion: Government funding for all, up to and including partial-birth, with or without parental consent.
Obama is a community activist with no experience in governance, military, health care, finance, management, or business who got elected to the Senate and even now, rarely attends hearings and has never written any legislation of his own. Clearly he has no relevant experience and is not qualified under any standard we would normally hold someone to if they wanted this job.
I'm not saying he isn't a nice guy, but his support is largely among people who have more of an emotional attachment than a logical one. They believe he cares about them and will work to make their life better, but if he has yet to help his own brother who is living on a dollar a month and has made over $4 million of which less than 5% has been donated to charity, I again see sheer emotion over-riding factual evidence among his supporters.
When we vote, we need to think more about a person’s deeds and LESS about the grand platitudes they speak in. Will the ocean levels really drop if we elect Obama? We the Earth begin to heal itself upon his inauguration? Is this really the moment we've all been waiting for? OR are these all just words designed to move us emotionally?
When asking a supporter why they intend to vote for Obama, typical responses are, "I like him," or, "I think we need a change." When asking the same people what kind of change they look for from Obama, the answers start to get a little odd and if you ask them what Obama has done in the past that they really admire, the answers start to lose cohesion completely. It generally boils down to the emotion of hope while losing all logic of experience or qualification. As Joe Biden said, the White House is no place for on-the-job-training, yet that is exactly what Obama would need.
Senator Obama is, arguably, one of the most motivational speakers in the Democratic party. His words motivate crowds and touch hearts. His words inspire us to look past our current problems and imagine a better tomorrow. His words make us believe in a greater good and a united planet where peace, love and harmony unite with the environment. Where greed is a thing of the past and the possibilities are limited only by the power of our imaginations. He tells us that the only people that need to pay are the richest among us and that a free ride awaits everyone else. All we need to do is trust him and his judgment to lead us to a brighter tomorrow and if we do, “…the levels of the oceans will drop and the Earth will begin to heal itself.” Truly, only a great, great man would be capable of healing the wounds that have plagued mankind for so long.
The emotional reasons for following Obama on this journey are many, but unfortunately, the logical ones are few. If we examine beyond the great speeches and grand platitudes, we find that his positions are not as savory as many of us would prefer and some of them are downright silly. Is this because of profound inexperience? Many believe so. What are the logical reasons we should elect Barack Obama to the White House? What has he done, where does he stand and what does he want to do?
TAXES as a SAMPLE ISSUE:
We know that he wants to raise a variety of taxes, especially on the wealthy, but is that smart? The wealthy provide jobs and spend the most money. Will taxing them simply cause them to cut jobs and wages and/or spend less? History shows us, time and again, that that is exactly what will happen, but even as Obama denies the success of the surge in Iraq, we find that our constitutional scholar is ignoring this historical fact.
Under the Clinton tax rates that Obama wants to return to, tax revenues actually dropped starting in 2000 from $2.4 trillion until 2003 when they bottomed out at just above $2 trillion. What happened in 2003? The Bush tax cuts took effect and going into 2008, revenues have recovered to their highest levels in history at $2.5 trillion. Lower taxes did not hurt the country. The solution to our economic problem is not nearly as simple as a slight tweak of out tax burden to a lucky few among us, but it’s not so difficult to understand either.
Incomes for average Americans has increased by 35% since 1965, yet discretionary government spending has increased by 152% and non-discretionary spending has increased by a whopping 759%! How can any society maintain these types of spending increases without matching increases in wealth? The answer is simply that we cannot.
In 1850, Alexander Tyler wrote, "A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury. From that moment on, the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policies followed by a dictatorship. The average age of the world's great civilizations has been 200 years. These nations have progressed through the following sequence:
From bondage to spiritual faith; From spiritual faith to great courage; From courage to liberty; From to liberty to abundance; From abundance to selfishness; From selfishness to complacency; From complacency to apathy; From apathy to dependency; and, From dependency back to bondage.”
Obama’s promise to lead us to dependence may sound great to the unwashed and uneducated masses and even many of the wealthy elite who stand to enrich their companies by serving the needs of the people at the request of the government through a variety of new programs, but to those of us who step back and think for a moment, the deals don’t sound so sweet.
Looking at his current positions and gathering from his statements we can put forth the following and ask ourselves if these are positions we can all agree to stand behind:
Obama's solution to illegal immigration: You need to teach your kids Spanish.
Obama's solution to the energy crisis: You need to check your tire pressure.
Obama's solution to abortion survivors: Let the abortionist pretend to be a pediatrician.
Obama's solution to health care: Free health care for all, including illegal immigrants.
Obama's solution to a sluggish economy: Raise taxes on the people who provide jobs and spend the most.
Obama's solution to the war on terror: Withdraw and wait for them to come to us again.
Obama's position on abortion: Government funding for all, up to and including partial-birth, with or without parental consent.
Obama is a community activist with no experience in governance, military, health care, finance, management, or business who got elected to the Senate and even now, rarely attends hearings and has never written any legislation of his own. Clearly he has no relevant experience and is not qualified under any standard we would normally hold someone to if they wanted this job.
I'm not saying he isn't a nice guy, but his support is largely among people who have more of an emotional attachment than a logical one. They believe he cares about them and will work to make their life better, but if he has yet to help his own brother who is living on a dollar a month and has made over $4 million of which less than 5% has been donated to charity, I again see sheer emotion over-riding factual evidence among his supporters.
When we vote, we need to think more about a person’s deeds and LESS about the grand platitudes they speak in. Will the ocean levels really drop if we elect Obama? We the Earth begin to heal itself upon his inauguration? Is this really the moment we've all been waiting for? OR are these all just words designed to move us emotionally?
When asking a supporter why they intend to vote for Obama, typical responses are, "I like him," or, "I think we need a change." When asking the same people what kind of change they look for from Obama, the answers start to get a little odd and if you ask them what Obama has done in the past that they really admire, the answers start to lose cohesion completely. It generally boils down to the emotion of hope while losing all logic of experience or qualification. As Joe Biden said, the White House is no place for on-the-job-training, yet that is exactly what Obama would need.
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