Showing posts with label economic stimulus package. Show all posts
Showing posts with label economic stimulus package. Show all posts

Saturday, April 28, 2012

New AFP ad highlights Obama's job creation - overseas


We all know about President Barak Obama's penchant for spending your tax dollars on 'green energy' companies. 

It was supposed to be an 'investment' in green jobs but all we have to do mention names like Solyndra (bankrupt), America's worst wind energy project, First Solar (laying off thousands), Solar Trust for America (bankrupt), Evergreen Solar (bankrupt), or SpectraWatt (bankrupt) to know how that turned out.

But many do not know that a lot of that so-called stimulus money, designed to improve the employment picture here in the United States, actually went to create job overseas.

Americans for Prosperity has put together a few of the highlights on how those stimulus dollars were spent:


*  $2.3 billion in tax credits went to create jobs in foreign countries.
*  $1.2 billion went to a solar energy company to help finance a new plant in Mexico.
*  $500 million to an electric car company which created hundreds of jobs in Finland.
*  Tens of millions of dollars to build traffic lights in China.

But they're not counting on just bloggers and press releases to share this information. Here is their latest ad:



I saw this commercial twice last night during prime time. It's running in eight states, including Ohio where Obama's 'green energy' plans aren't just tanking in terms of creating new jobs, but are responsible for killing existing jobs here as part of his promise to bankrupt the coal industry.

I'm certainly not in favor of government picking the winners and losers in the marketplace via such funding, but if you're going to spend the money, at least ensure that our American tax dollars are helping American taxpayers, for goodness sake!

This is an important election.  Don't hope that your family, friends and neighbors will see this ad or read a blog about it.  Spread the word - especially to those union workers with the bumper stickers that say "Out of a job yet?  Keep buying foreign."  Make sure they know that their union leaders are firmly and staunchly supporting Obama - and spending their union dues to help a President who is sending jobs overseas.

Monday, September 19, 2011

We don't need another Obama czar

In case you missed it, President Barack Obama's American Jobs Act creates another czar.

What?

That's right. But wait, there's more...

It's not just a new czar - it's an entire new agency. And one that duplicates existing federal agencies already in place. Can you say 'stuck-on-stupid'?

American Infrastructure Financing Authority (AIFA) will be the name, complete with staff, office space, computers and phones and desks, etc.., etc..., etc.... And don't forget its 7-member board!

And what, exactly, is this new agency supposed to do? Well, this article spells it out nicely - including the duplication:

All of the infrastructure projects and tasks identified to be performed by Obama’s new Czar are already the responsibilities of the Senate-confirmed heads of Department of Transportation, the U.S. General Services Administration and the Department of Energy.

Some of these tasks are:

"oversee entering into and carry out contracts, leases, cooperative agreements or any other transactions as are necessary"

to approve the acquisition, lease, pledge, exchange and disposal of real personal property

to review all financial assistance packages to all eligible infrastructure projects" which includes “any non-Federal transportation, water, or energy infrastructure project, or an aggregation of such infrastructure projects, as provided in this Act.

the construction, alteration, or repair, including the facilitation of intermodal transit, of the following subsectors:
· Highways or roads.

· Bridges.

· Mass transit.

· Inland waterways.

· Commercial ports.

· Airports.

· Air traffic control systems.

· Passenger rail, including high-speed rail.

· Freight rail systems.

· Waterwaste treatment facilities.

· Storm water management systems.

· Dams.

· Solid waste disposal facilities.

· Drinking water treatment facilities.

· Levees.

· Open space management systems.

· Pollution reduced energy generation.

· Transmission and distribution.

· Storage.

· Energy efficiency enhancements for buildings, including public and commercial buildings.

Obviously, our president doesn't think the existing agencies can do their jobs or else he wouldn't be proposing to duplicate/replace them. Of course, it could be that he just wants to have political control over all the spending he's proposing rather than run it though the existing agencies with their rules, regulations and congressional oversight. You decide.

Either way, we don't need to create a new agency, a new board and a new czar - that's just plain 'stuck-on-stupid' when everyone, including the President, is talking about raising taxes and cutting spending elsewhere just to pay for this latest stimulus inaccurately called the American Jobs Act.

Friday, September 09, 2011

Obama's 'jobs' speech: second verse, same as the first

This is an exceptionally long post, but I hope you'll read through to the end and then click on the links to some other perspectives.


As I've previously explained, I don't watch President Barack Obama when he gives a speech. I read it afterward - and if you preferred reruns and football last night, the complete text is available here.

I did, however, hear parts of it. And while I admit I may have taken some of the tone out of context, what I heard came across as angry and demanding. It sounded like a petulant child who hasn't gotten his way and is demanding an unreasonable action. It did not sound presidential - and failed to do what it promised: lay out a plan to move the nation forward.

Oh, it had 'ideas,' but the most critical part of any idea is the implementation and, in this regard, the President failed miserably. He took several weeks to put together his 'plan' and then told us he'll let us know how in the world he's going to pay for all his grand ideas. Of course, he's not going to develop the funding plan - except to tax the rich like he always wants to do - he's pushing that off on the 'super committee' charged with finding ways to cut the budget. He assumes no responsibility whatsoever for the actual implementation - hardly what you'd expect of a leader.

Additionally, throughout his speech he gives clear evidence that his 'solutions' are not going to work - not just because they're exactly what he did with the first stimulus, but because he starts with an incorrect premise. And when you start with an incorrect premise, you cannot help but arrive at the wrong conclusions - or, in this case, a 'jobs' plan that won't really result in sustained job growth.

So let's get started with what he actually said (in order, but not his complete speech):

Tonight we meet at an urgent time for our country. We continue to face an economic crisis that has left millions of our neighbors jobless, and a political crisis that’s made things worse.

This past week, reporters have been asking, “What will this speech mean for the President? What will it mean for Congress? How will it affect their polls, and the next election?”

I don't really think we have a political crisis - we have political wrangling and divergent philosophies. Disagreement as to best way to address a problem is what our nation is all about and disagreement does not equal crisis. In fact, it isn't the 'political crisis' which has made things worse. No - it's the policies of this President that have given us increased unemployment (despite claims that it would remain under 8%), increased spending, increased debt, increased regulations that cost us a fortune, increased mandates that limit our freedoms and no certainty as to what is to come which results in a lack of confidence from the business community - the very people we rely upon to actually create the jobs Obama says he wants.

And it's interesting that he knows what the reporters are asking - and that he believes it's all about him. Narcissistic, perhaps?

But the millions of Americans who are watching right now, they don’t care about politics. They have real-life concerns. Many have spent months looking for work. Others are doing their best just to scrape by -- giving up nights out with the family to save on gas or make the mortgage; postponing retirement to send a kid to college.

These men and women grew up with faith in an America where hard work and responsibility paid off. They believed in a country where everyone gets a fair shake and does their fair share -- where if you stepped up, did your job, and were loyal to your company, that loyalty would be rewarded with a decent salary and good benefits; maybe a raise once in a while. If you did the right thing, you could make it. Anybody could make it in America.

Obama's basic misunderstanding of America and its history is astounding. Our nation isn't one where 'everyone gets a fair shake and does their fair share.' Where does he get such distorted ideas?

Our nation is one where what you accomplish is up to you. You can be whatever you want to be - if you work hard and are persistent. Our constitution guarantees equality under the law - not equal outcomes. Our nation rewards those who work harder than others. In fact, if our founders were interested only in doing their 'fair share,' I doubt our nation would have survived.

Our nation is not a collective. It has been successful as a whole because individuals have been successful.

And he seems to have so little expectations for Americans - as if all we want in life is to do a job, be loyal to our employer and maybe get a raise once in a while. Is that all Americans want for themselves? Perhaps George W. Bush's phrase should be brought out again: the bigotry of low expectations. I don't know about you, but my goal for my life is more than to just labor at a job hoping to maybe get a raise once in a while.

For decades now, Americans have watched that compact erode. They have seen the decks too often stacked against them. And they know that Washington has not always put their interests first.

While I can certainly agree that the politicians in Washington rarely put the interests of their constituents first, I take great exception to the characterization that we are victims. Of course, when you grow up the philosophy that the only reason you're not successful is because someone is preventing you from being such, it's only reasonable to think of everyone as a victim - and to treat them accordingly. And unless you're a victim, you don't need these wiser, smarter, better people to 'save' you.

The people of this country work hard to meet their responsibilities. The question tonight is whether we’ll meet ours. The question is whether, in the face of an ongoing national crisis, we can stop the political circus and actually do something to help the economy. (Applause.) The question is -- the question is whether we can restore some of the fairness and security that has defined this nation since our beginning.

If Obama truly wanted to stop the "political circus" he would have denounced the recent threat by Jimmy Hoffa; repudiated Rep. Maxine Waters saying the "tea party can go straight to hell", and rebuked Rep. Andre Carson's for saying that some of us want 'blacks hanging on a tree.'

Mr. President, your actions speak louder than your words.

And again, he reveals his complete and total lack of understanding about America. Our nation has not been defined, from the beginning, by 'fairness and security.' Our founders did not create a nation in which things would all be 'fair' - they clearly recognized that, while we are all created equal, what we make of ourselves is up to each of us and when some work harder than others, there will be different outcomes. I cannot help but wonder where Obama got such a twisted and distorted view.

Those of us here tonight can’t solve all our nation’s woes. Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers. But we can help. We can make a difference. There are steps we can take right now to improve people’s lives.

He is absolutely right - politicians in Washington cannot solve all our woes - and we don't expect them to. And the economic recovery will be driven by businesses - they are the only ones who can actually create jobs and create wealth (there is a difference). But Obama routinely demonizes businesses - different ones and different industries...a contradiction he fails to address and the main stream media continually ignores.

And yes, Washington can help and there are steps they can take. But his purpose - 'to improve people's lives' - is wrong. Here is his incorrect premise. The majority of us don't look to Washington to improve our lives - we're perfectly capable of doing that on our own, if Washington would just get out of the way. No, we look to Washington to take care of our national defense, to regulate commerce between the states and with other nations - to do the thing detailed in the Constitution. Much of our problems today are a direct result of D.C. politicians thinking they can - and should - take care of us.

I am sending this Congress a plan that you should pass right away. It’s called the American Jobs Act. There should be nothing controversial about this piece of legislation. Everything in here is the kind of proposal that’s been supported by both Democrats and Republicans -- including many who sit here tonight. And everything in this bill will be paid for. Everything. (Applause.)

I really don't get his urgency. If he needed Congress to rush this, why did he wait until after his vacation to present it? Also, shouldn't Congress do what we hired them to do - read it, deliberate, consider consequences, think of unintended outcomes, evaluate and then decide? Isn't that why we sent them to Congress in the first place?

Or does Obama believe they should hurry up and pass the bill in order to find out what's in it???

The purpose of the American Jobs Act is simple: to put more people back to work and more money in the pockets of those who are working. It will create more jobs for construction workers, more jobs for teachers, more jobs for veterans, and more jobs for long-term unemployed. (Applause.) It will provide -- it will provide a tax break for companies who hire new workers, and it will cut payroll taxes in half for every working American and every small business. (Applause.) It will provide a jolt to an economy that has stalled, and give companies confidence that if they invest and if they hire, there will be customers for their products and services. You should pass this jobs plan right away. (Applause.)

Again with the incorrect premise... Obama thinks that the way to address our economic issues to have people work and earn money. Actually, that is the outcome of economic activity - not the impetus. If we could solve our economic problems by just hiring and paying people, then we might as well hire a whole bunch of people to dig holes - with spoons - and then hire a bunch more to fill the holes - also with spoons. Just think of how many people will employed then!

The jobs he wants to 'create' are government jobs - teachers and government contracts for public works - most of which will end up going to unions who support him. What a surprise!

The payroll taxes he wants to cut are actually the Social Security taxes. While I certainly believe businesses pay too much in taxes in general (despite instances of some companies not paying anything at all - see below comment when Obama mentions Warren Buffet), I must question their logic of cutting the amount going to Social Security when the same people supporting this move are also talking about increasing Social Security taxes because the fund is broke! You cannot have it both ways. Well, perhaps they believe they can.

Obama says his bill will "give companies confidence that if they invest and if they hire, there will be customers." There is no way government - and certainly not a particular bill - can do this!!! No company is going to hire a person unless they actually need the worker. To do otherwise is fiscally irresponsible and just plain stupid. And business owners responsible for making such hiring decisions aren't going to just believe Obama when he says, "trust me - my bill will provide you with customers."

Obama's complete lack of understanding about how a business works, what motivates them and why decide to purchase equipment and hire people is just too evident to anyone who has ever been in business. Again, with an incorrect premise: that if companies would just hire people, all the problems will be solved.

It's simplistic thinking - we don't have enough people employed so the solution is just to have companies employ them. My head hurts just thinking about this!

Pass this jobs bill -- pass this jobs bill, and starting tomorrow, small businesses will get a tax cut if they hire new workers or if they raise workers’ wages. Pass this jobs bill, and all small business owners will also see their payroll taxes cut in half next year. (Applause.) If you have 50 employees -- if you have 50 employees making an average salary, that’s an $80,000 tax cut. And all businesses will be able to continue writing off the investments they make in 2012.

See? If you will hire someone, we'll give you a tax cut - $1,600. Yippee!!! What Obama and his administration fail to understand is that the costs of bringing on another employee must be less than what you think that employee will give you in profits - otherwise, it makes no sense to hire someone. And a $1,600 tax break pales in comparison to the additional costs of Obamacare, plans to raise taxes in others areas, regulations and new requirements coming from the EPA, OSHA, the NLRB, etc...

And do you remember all the demonizing of the corporate jet owners??? I didn't see the main stream media (MSM) questioning him on his original vote in favor of this particular tax break and now it seems his plan to continue letting businesses write off 'investments' would continue the corporate jet tax break. Does he never see his own contradictions? Don't his staff people tell him about these things? Is he so arrogant to believe no one will notice?

Well, maybe, since the MSM are so reluctant to do anything that might cast him in a negative light.

Pass this jobs bill, and we can put people to work rebuilding America. Everyone here knows we have badly decaying roads and bridges all over the country. Our highways are clogged with traffic. Our skies are the most congested in the world. It’s an outrage.

Building a world-class transportation system is part of what made us a economic superpower. And now we’re going to sit back and watch China build newer airports and faster railroads? At a time when millions of unemployed construction workers could build them right here in America? (Applause.)

There are private construction companies all across America just waiting to get to work. There’s a bridge that needs repair between Ohio and Kentucky that’s on one of the busiest trucking routes in North America. A public transit project in Houston that will help clear up one of the worst areas of traffic in the country. And there are schools throughout this country that desperately need renovating. How can we expect our kids to do their best in places that are literally falling apart? This is America. Every child deserves a great school -- and we can give it to them, if we act now. (Applause.)

This is another stimulus - no matter what he calls it. He made a joke about the last 'shovel-ready' infrastructure plan and now he wants to do the same thing. He apparently has no clue about the rules, regulations, time frames, requirements, etc... of doing such projects if he thinks they can all get under way right away. And exactly how much of the last stimulus is still waiting to be spent???

But what upsets me the most is his comparison of America to China. China is a communist country with a communist mindset when it comes to economics. Why in the world would we want to duplicate what they are doing?!?

The American Jobs Act will repair and modernize at least 35,000 schools. It will put people to work right now fixing roofs and windows, installing science labs and high-speed Internet in classrooms all across this country.

Umm....We don't need this in Ohio. Ohio passed its own school modernization program with tobacco lawsuit settlement monies. We matched those funds with our local taxes specifically for the building a new schools. So how, exactly, will a plan to duplicate what we've already done help Ohio? It won't. It will suck our tax dollars out of our state and send it to other states where either the politicians or the tax payers have decided NOT to make such investments.

So much for the idea of 'fairness.'

Pass this jobs bill, and thousands of teachers in every state will go back to work. These are the men and women charged with preparing our children for a world where the competition has never been tougher. But while they’re adding teachers in places like South Korea, we’re laying them off in droves. It’s unfair to our kids. It undermines their future and ours. And it has to stop. Pass this bill, and put our teachers back in the classroom where they belong. (Applause.)

In community after community, state after state, schools are making decisions to reduce both their size and the costs. Their primary expenditure is in salaries and benefits. The teachers unions - supporters of Obama - are the problem, yet this plan will reward those unions by keeping their members employed despite the wishes of the local communities. This is just plain wrong.

Pass this jobs bill, and companies will get extra tax credits if they hire America’s veterans.
...
Pass this bill, and hundreds of thousands of disadvantaged young people will have the hope and the dignity of a summer job next year. And their parents -- (applause) -- their parents, low-income Americans who desperately want to work, will have more ladders out of poverty.
...
Pass this jobs bill, and companies will get a $4,000 tax credit if they hire anyone who has spent more than six months looking for a job. (Applause.)
...
The plan also extends unemployment insurance for another year. (Applause.) If the millions of unemployed Americans stopped getting this insurance, and stopped using that money for basic necessities, it would be a devastating blow to this economy.
...
Pass this jobs bill, and the typical working family will get a $1,500 tax cut next year.

A tax credit for hiring veterans is not a bad idea - probably one that will garner support from all.

Unemployment among youth (teens, actually) was 25.4% (almost 49% for African-Americans teens and 35% for Hispanic youth). And why is unemployment among the teens so high? It's not just because of the recession. No, it's because they cost more than what they are worth. For the most part, they are unskilled and inexperienced. The minimum wage - what they must be paid under law - has been increased beyond their value to a company, resulting in their high rates of unemployment. Couple that with a recession where you have more skilled and experienced workers out of work and available to take jobs that would have otherwise gone to the teens and you have record unemployment.

The solution for this is not to pay companies to hire the teens - it's to make them attractive to employers overall which means that companies need to be able to pay them what they're worth.

As for their parents, the policies of this president and his party have done nothing but keep the poor mired in poverty; they are 'taught' that it's not their fault they're poor and that they are victims who can only 'make good' by electing Democrats who would rather have them dependent upon the government for largesse than have them independent and successful where they might actually realize that Democrats don't really have their best interests at heart.

Again, actions speak louder than words and good intentions are not enough to ensure positive outcomes.

The plan calls for $4,000 to anyone who hires a person out of work for more than six months. Again with the wrong premise - that companies just need to hire people, regardless of their need. Obama's plan, in an attempt to address the long-term unemployed, wants to subsidize their employment. But why are they unemployed for so long? Are they less skilled than their competitors? Are they less capable? Are they comfortable in continuing to be on unemployment compensation because it gives them more than what they could make by taking a job?

I think that the last point is it - but then Obama contradicts his own plan by extending unemployment insurance. It's already around two years now - just how long is it that we pay people to not work? And if it's bad now, what will happen when the government no longer grants the extension?

What happened in the past? Well, people went out and actually got jobs. They didn't always get a job that paid them the same - most often it was less. But they didn't stay in that lesser pay for very long - no one really does. They either gained new skilled or more experience, became more valuable and then went on to something better. Was it difficult for their families? Yes - for a while - but that plan is so much better than the contradictory plan presented by Obama which only extends the problem.

And how will he pay for all of this? He doesn't know - he's abdicating the responsibility for funding his plan to the super committee:

The agreement we passed in July will cut government spending by about $1 trillion over the next 10 years. It also charges this Congress to come up with an additional $1.5 trillion in savings by Christmas. Tonight, I am asking you to increase that amount so that it covers the full cost of the American Jobs Act. And a week from Monday, I’ll be releasing a more ambitious deficit plan -- a plan that will not only cover the cost of this jobs bill, but stabilize our debt in the long run. (Applause.)

What a plan! Oh - and tax the rich!

I am also -- I’m also well aware that there are many Republicans who don’t believe we should raise taxes on those who are most fortunate and can best afford it. But here is what every American knows: While most people in this country struggle to make ends meet, a few of the most affluent citizens and most profitable corporations enjoy tax breaks and loopholes that nobody else gets. Right now, Warren Buffett pays a lower tax rate than his secretary -- an outrage he has asked us to fix. (Laughter.) We need a tax code where everyone gets a fair shake and where everybody pays their fair share. (Applause.) And by the way, I believe the vast majority of wealthy Americans and CEOs are willing to do just that if it helps the economy grow and gets our fiscal house in order.

How much more should these wealthy people pay? They already pay half of what the nation collects despite the fact that they don't represent half the population. And he cannot tax those 'wealthy' people enough to address all the spending he's done so far, much less this additional amount.

As for Warren Buffet - perhaps Obama could just tell him the address of the U.S. Treasury and ask him to send a check? If Buffett (and others) are so keen to pay more taxes, there's nothing stopping them from writing a check. Of course, they pay accountants tons of money to avoid taxes in the first place, so maybe they could fire all those accounts and just fill in the 1040EZ and take no deductions. Better yet, how about if Buffett just has his company pay his back taxes - $1 billion dating back to 2002?!?

But Obama doesn't really want a tax code where "everyone gets a fair shake and where everybody pays their fair share." No, what he advocates just before that sentence is a direct contradiction. The rich should pay more because they can 'afford' to. The rich can also 'afford' to spend more for medical care and somehow that's not fair, but being able to 'afford' to pay more in taxes is???

A 'fair' tax code wouldn't expect some to pay while others don't, nor would it take from some to give to others. That's not 'fair' by any definition of the word.

Now, the American Jobs Act answers the urgent need to create jobs right away. But we can’t stop there. As I’ve argued since I ran for this office, we have to look beyond the immediate crisis and start building an economy that lasts into the future -- an economy that creates good, middle-class jobs that pay well and offer security. We now live in a world where technology has made it possible for companies to take their business anywhere. If we want them to start here and stay here and hire here, we have to be able to out-build and out-educate and out-innovate every other country on Earth. (Applause.)

First, I don't want an economy that creates good, middle-class jobs - I want one that creates all kinds of jobs - lower-, middle- and upper-class ones. I want a thriving economy that has jobs for all skill levels. My goal isn't to just have a good middle class position, but to excel. Why does he have such mediocre 'hopes' for us?

Then there is the incorrect premise: that is business is to stay here in America, we have to out-build, out-educate and out-innovate other countries. Actually, what's encouraging companies to locate in other nations has nothing to do with education, building and innovation; it has everything to do with being able to make a profit. If a company can make more money for its shareholders (most of whom are middle-class workers who have their retirement funds and pensions invested in such companies) by going overseas, it will do so. There is also the logistics to consider. Many companies want to have a manufacturing presence in countries where they sell their products. This is both logical and profitable from a public relations standpoint as well as from a fiscal one.

And on all of our efforts to strengthen competitiveness, we need to look for ways to work side by side with America’s businesses. That’s why I’ve brought together a Jobs Council of leaders from different industries who are developing a wide range of new ideas to help companies grow and create jobs.

Despite three years of demonizing businesses he now wants to work side-by-side with them? I doubt many businesses are going to believe he's sincere. As for a Jobs Council - most companies don't need a government committee to tell them how to grow and create jobs; they just need government to get out of their way so they can do what they know they need to do.

In fact, this larger notion that the only thing we can do to restore prosperity is just dismantle government, refund everybody’s money, and let everyone write their own rules, and tell everyone they’re on their own -- that’s not who we are. That’s not the story of America
.
First, conservatives, Republicans, tea party groups and members do NOT want to "dismantle government." We believe in a limited government - not an absence of government. We don't want to "refund everybody's money" - we believe that government takes too much of our own money to spend in ways we wouldn't and for things the federal government has no authority to do and would rather let people keep their money to spend as they want. I mean, really - does a tea pot museum really deserve national tax dollars???

Second, he's wrong because a limited government with taxes only sufficient to support that limited government is exactly who we are! And that IS the story of America.

Ask yourselves -- where would we be right now if the people who sat here before us decided not to build our highways, not to build our bridges, our dams, our airports? What would this country be like if we had chosen not to spend money on public high schools, or research universities, or community colleges? Millions of returning heroes, including my grandfather, had the opportunity to go to school because of the G.I. Bill. Where would we be if they hadn’t had that chance? (Applause.)

How many jobs would it have cost us if past Congresses decided not to support the basic research that led to the Internet and the computer chip? What kind of country would this be if this chamber had voted down Social Security or Medicare just because it violated some rigid idea about what government could or could not do? (Applause.) How many Americans would have suffered as a result?

Another incorrect premise: that if government hadn't done these things, none of them would have happened. Yet, we have plenty of private schools and universities, people build roads and bridges long before the federal government started to do so and people have been finding a way to go to college long before the federal government started subsidizing it.

As for the last two questions...

"What kind of country would this be if this chamber had voted down Social Security or Medicare just because it violated some rigid idea about what government could or could not do? How many Americans would have suffered as a result?"

... all I can say is 'wow!' We all know he believes there is nothing sacred about the limits placed on our government by our constitution, but this blatant, outright disregard for the document he swore to preserve, protect and defend is just unbelievable! Our constitution is not just some 'rigid idea' - it is the defining document that grants authority to the government for specific tasks, recognizing that it is 'we the people' who are supposed to be in control - not some far-off bureaucracy with the unlimited power to do whatever it sees fit.

Again, how is he so very wrong?

The President also says he wants to "listen to every good proposal, no matter which party comes up with it." Well, here's an idea: lift the moratorium on oil drilling. The American Petroleum Institute said lifting restrictions could allow them to create 1,000,000 jobs - actual jobs that don't rely upon government funding to exist. How's that for a job plan?

But since the President hates the oil industry (at least publicly despite accepting campaign donations from them), I doubt this will be one of those ideas he wants to 'listen' to.

In the end, the plan he put forth is just more of the same: nothing new in terms of policies, philosophies or actual substance; no funding plan; more class warfare pitting rich against poor; more politicking despite claiming not to be; and nothing different in terms of the last stimulus which failed miserably.

It's just the second verse, same as the first - and the outcome will also be the same.




Some other perspectives on the speech:

Warner Todd Huston's "Live Tweeting Obama's Job Speech: More Big Government Boondoggles"

Leslie Carbone's "Same Scheme, Different Speech"

Ken Marrero's "Congress Should Not Pass American Jobs Act, it Should Just Pass"

David McElroy's "Trusting Obama to create jobs is like trusting an arsonist to put out fires"

Ed Morrissey's "Which word was missing from Obama's speech last night?"

Ed Morrissey's "AP fact check skewers Porkulus II: Economic Boogaloo speech"

Wall Street Journal Editorial: The Latest Jobs Plan

Friday, September 24, 2010

Ohio stimulus dollars

I received a press release the other day from the Ohio Republican Party talking about how Ohio has spent its so-called 'stimulus dollars.'

From the release:

As a follow-up to Vice President Joe Biden's visit to Dayton on Monday, we thought it would be helpful to look at where Ohio's "stimulus" dollars are being spent:

* $1 million on road signs to tell Ohioans which highway projects were funded by federal stimulus dollars. (The Plain Dealer, 9/9/09)

* $11 million to outsource an appliance rebate program to a Texas company, which then hired workers in El Salvador. (The Plain Dealer, 7/29/10)

* $145,000 to rent "marble-clad" banquet halls, high-end hotels and conference centers for teacher workshops in Columbus. (Columbus Dispatch, 12/6/09)

* $1.4 million to pay speakers at a Columbus City Schools workshop, including thousands of dollars to a company owned by the former school board president. (Columbus Dispatch, 12/6/09)

* $800,000 for "quiet zones" in North Ridgeville, OH, where the mayor admits the project is "a long way from the top priority." (The Chronicle Telegram, 5/22/09)

* $63,000 for the Ohio Department of Agriculture to buy fish food. (CNN, 1/25/10)

* $4.5 million for Cleveland City Schools to provide "family liaisons" that help parents "find their way through the school district bureaucracy." (The Plain Dealer, 11/06/09)

* Unknown amount of funds to fix curbs on Gov. Strickland's street, which a local TV station calls "one of the most prestigious areas of Central Ohio where million-dollar mansions sit secluded behind well manicured landscaping." (WCMH-Columbus, 8/27/10)

* $500,000 for a consultant to design a recycling campaign for new trash cans in Dayton that use "microchips to track citizen participation." (Dayton Daily News, 2/11/10)

* $300,000 to open and operate a city-owned pool in Youngstown. (Vindicator, 6/12/10)

* $200,000 for a Toledo ship museum to remove asbestos from a 1911 ship. (Fox Toledo, 7/22/10)

* $336,000 to collect and document flowers and plants in Ohio. (WCMH-Columbus, 8/5/10)

* $267 million for home weatherization projects in Ohio, 40 percent of which later failed state inspection. (Columbus Dispatch, 3/14/10)

* $1.5 million to install fencing on an Akron bridge to keep people from jumping. (Akron Beacon Journal, 3/27/09)

Now, I understand how some people might think that government spending creates jobs - but every historical, empirical, objective evaluation of such spending shows it can only 'create' temporary jobs - not the kind of economic growth that is necessary to sustain a turn-around.

And if having the government pay people to work actually was such a good thing, we could employ half the unemployed by giving them a spoon and telling them to dig a whole while employing the other half to fill it. There's no economic growth in doing that.

And many of these types of projects are similar. They take money from the people actually paying taxes and spend it on 'make work' projects or on things that the federal government shouldn't be paying for.

What a warped system we have. We 'rejoice' and politicians 'brag' about getting this money only to find that it ends up costing us more in the long run. How much additional money would I have in my pocket if I wasn't helping to pay for pools in Youngstown, recycling advertising programs in Dayton (not to mention in addition to the huge trash tax I'm paying in Toledo), liaisons at Cleveland schools, curbs at the governor's mansion or fish food. And how much money would I have for weatherizing my home if I weren't helping to pay for everyone else to do the same?

This is a failed logic and I hope the majority of voters are going to vote against such programs and politicians who support such programs. And that non-voters realize what's going on and begin to vote.

Saturday, July 17, 2010

Things I don't want to think about on a summer Saturday

My postings have been a bit light lately, due to a number of things. I have work (yes, that thing that earns me money to help pay the bills) - and that's a good thing.

But I also have disgust at what I see going on in the political realm - and that's a bad thing.

I know exactly how so many people feel when they see what counts for 'action' by our governments at all levels and it is eerily reminiscent of the feelings I felt while in office .... that efforts are for naught.

Don't get me wrong - I'm very encouraged by a lot of things: good candidates with firm philosophies and not various 'positions' on issues; a growing awareness of the impact political decisions being made have on individual freedom; the enthusiastic embrace of limited government/low spending approaches by many individuals regardless of political party, etc...

But sometimes, the idiocy or 'stuck on stupid' things just really get to me.

We've seen Toledo City Council and the Lucas County Commissioners spending time on non-binding 'statements' opposing a state for a law greatly supported not only by their own residents but by a majority of Americans as well.

Considering all the polls on the issue, I can't help but think these elected officials are violating the wishes of their own constituents, but that's nothing new. They were catering to a specific small-but-vocal group of interests that they believe they need to placate.

We've seen the news that Ohio is facing huge budget deficits for the next year and that our governor is again hoping one-time money from the feds (actually from all of us) will get him by. State Auditor Mary Taylor warned everyone in the last budget go-round that relying upon one-time 'stimulus' funds was a recipe for bigger problems in the future - and she was absolutely right. Why the idiots in Columbus cannot see that, I don't know.

And then I heard on the news yesterday that Gov. Strickland has asked his departments and agencies to let him know the negative impacts a 10% budget cut would have. That's the most WRONG question to ask! You ask them how they can cut their budget, not how bad things could be if they are forced to do so.

I don't know why it is that politicians never want to ask the questions that will actually give them the answers they need. They always ask 'what don't you want cut,' knowing full well that every little group that benefits from the spending will show up to say 'don't cut my program.' We see that in Toledo and Lucas County, too.

Instead, they should be asking 'what can you live without'? With that type of question, you'll at least get a listing of programs, projects, etc...that people can do without as opposed to the ones they don't want to give up, regardless of priority.

So what will Strickland get as a response to his request? He'll get a bunch of doom-and-gloom scenarios as bureaucrats list the most dire consequences of a cut in funds. He'll then end up in a no-win situation if he and the state legislature make the cuts that we all know need to be made.

We've seen President Barack Obama give 'stimulus' funds to a foreign company that is setting up shop in Michigan. Where is the outrage from all the 'buy America' people?

I despise the idea of any 'stimulus' coming from the government in terms of handouts to companies while that same government simultaneously increases taxes and regulatory compliances. Talk about contradictory! We're supposed to be ever so grateful for the meager government largess while ignoring that they're making us less profitable by requirements/fees/rules/taxes/etc... that add much, much more to the cost of doing business. That's not the way to 'stimulate' the economy.

And while that is a huge thing, it's nowhere near the double standard so evident in the action. If providing subsidies to foreign companies is a bad thing, then it's a bad thing even when Democrats or Pres. Obama do it. If groups are pushing a 'buy American' approach, they need to be vocal when American tax dollars are going to a foreign company in Michigan. And if they're not going to object to this particular expenditure, they cannot object to others.

Most people can live with either position - or at least agree to disagree. But when the criteria for comments or outrage is not the principle, but whichever political party is engaged in the act, the American people see it for what it is and reject the hypocrisy. (I hope.)

We've also seen the slippery slope in full effect. Many people have rightly complained that when government pays for things, it insists upon making decisions relating to those monies. We see it with the states: impose certain laws or forgo the money we're planning to give you.

As the federal government moved into the realm of health care, they made promises about us still being in control, but many of us knew it was only a matter of time. If government is paying for your medical care, it won't be long until they're dictating your eating and exercise habits under the guise of 'containing costs' for your care.

The White House chef is now a 'senior policy advisor' to the White House so he can advise us on an 'epidemic' of obesity. I always thought an epidemic was some sort of infectious disease that spreads among the populace. Who knew that your own actions (or lack thereof) could qualify?!? So now obesity is a matter of 'national security' and legislatures are trying to figure out how to control things you eat like salt and trans-fats and junk food.

Oh - let me clarify. They're not yet trying to make YOU stop eating things that are bad for you (though they are requiring a reporting of your Body Mass Index to them by 2014). They realize that if they tell you that you can no longer eat too much salt (even though 'too much' is a large range that varies from person to person), you'll rebel. So they're telling food manufacturers that THEY can't include salt in their products - and they're doing so through force of law.

It is a slippery slope and we are gliding down it at a very fast pace, approaching an even steeper incline.

So with all these things going on it's easy to just bury oneself in work, family and things like mowing the lawn. But, as Wendell Phillips once said:

Eternal vigilance is the price of liberty — power is ever stealing from the many to the few…. The hand entrusted with power becomes … the necessary enemy of the people. Only by continual oversight can the democrat in office be prevented from hardening into a despot: only by unintermitted Agitation can a people be kept sufficiently awake to principle not to let liberty be smothered in material prosperity.

Wednesday, December 16, 2009

Does Toledo home weatherization program prove that stimulus funds weren't needed

WSPD News is reporting the following:

Applicants Still Sought for Home Weatherizing

Funded with $8M in Stimulus Money
By WSPD's Nik Rajkovic

A large portion of federal stimulus money is still available to qualified homeowners in Lucas County to install new insulation, repair windows or replace water heaters. William Farnsel with Neighborhood Housing Services says the agency now is going door-to-door with applications.

Farnsel says so far the agency will have completed 240 projects by the end of this year, and still has to complete 1,000 within 22 months.

Let's get this straight: too few people have signed up so this agency is going door-to-door to try and find enough people eligible for the transfer of wealth?

This is a prime example of the stupidity involved in the stimulus program and in government in general. They've given a sum of money to Toledo and a sub-contracted agency for a particular purpose, only to find that there isn't as large a demand for that particular purpose as they'd thought.

I can only wonder what the impact would have been if they sent out people to sign up 'qualified homeowners' and then funded ONLY the ones that got signed up.

Instead, NHS got $8,479,475 to 'weatherize' 1,000 low-income homes. What they don't tell you is that it doesn't equate to $8,479.48 per house. No - they're paying NHS staff and inspectors and technicians. Ohio, which divvied up the total allotment of $266,781,409, also authorized the purchase of several trucks and vans, infrared cameras, blower doors, combustion analyzers, insulation blowing machines, and additional safety equipment with the funds. And just for good measure, they funded training courses to meet demand due to the considerable increase of crew and contractor based personnel hiring they expected would be the result of the program.

And to what effect? Toledo's got a ton of money it's having trouble spending.

Of course, most of us aren't eligible for this 'assistance.' I happen to need a new hot water heater, one of the energy-efficiency items that are authorized under the program. But because my husband and I earn more than 200% of the poverty level, we've paid taxes to fund the program but will never see any benefit from it.

So because our tax burden is so high, we have to scrimp and save in order to be able to afford a new energy-efficient hot water heater. But those same tax dollars we're paying (instead of buying the item) are going to someone else so they can get a new energy-efficient hot water heater 'for free.'

And, of course, those politicians in Washington and Columbus and in One Government Center will be certain to take credit for 'helping' the poor with other peoples' money.

What a wonderful system we have.

Tuesday, November 24, 2009

The definition of stupidity....

I often mention Tom Blumer, who writes at BizzyBlog, for his writing on economics and accounting issues. One of his recent posts is a must-read for this area.

Kelo, GM, and the Stimulus: Three Big Government-Induced Failures details three examples that, as Tom puts it, "clearly demonstrate that government should be the last place people look to for solutions to economic problems."

He also asks the age-old question: if the lessons are so clear, why do people keep doing things that don't work?

Hmmm...sounds like he could have used Toledo/Lucas County as examples as well.

I hope you'll read the entire article - and maybe add BizzyBlog to your daily reading as well.

Tuesday, November 17, 2009

Bogus jobs numbers in the stimulus & Ohio phantom congressional districts

The Washington Examiner has been compiling various news reports about the bogus numbers of jobs 'created or retained' by the stimulus funds.

In their spreadsheet, they even list a Toledo example:

Koring Group reported hiring 52 people, but it turns out that they double-counted jobs that “only lasted about two months.” The FCC estimates that “actual job count is closer to five.”

But this got me thinking about two items I saw on the November 10th Council agenda:

608-09
Accept ARRA Stimulus grant for prosecutor and intern for crimes of Violence Against Women,$40,193
Passed

614-09
Accept ARRA Stimulus grant for retention of jobs in Prosecutor's Office, $93,724
Passed

These positions have been funded in the past by Violence Against Women Act (VAWA) grant dollars and Justice Assistance Grants (JAG) and/or Byrne Memorial grant funds.

So these are not new positions in the Prosecutor's office.

But, they are now funded by ARRA - the American Recovery and Reinvestment Act - and I can't help but wonder if they are part of the number of jobs 'created or saved' being claimed by government.

Certainly, since they are existing positions, they are not jobs 'created.' If these old grants had not been replaced (renamed?) by ARRA, it is likely they would have continued, so I don't know that we can say the jobs were 'saved.'

I still take exception to the 'saved' category, as any job that isn't eliminated could be claimed by the government as one 'saved,' regardless of any action of or by the government.

But that point aside - are jobs like these in the Prosecutor's office included in the claim? I couldn't tell by looking at the Recovery.gov website, which is supposed to track the stimulus funds.

Interestingly, though, I did find two curious expenditures at Recovery.gov:

$25,000 awarded on Aug. 12, 2009 as a sub-grant to TOLEDO ORCHESTRA ASSOCIATION INC.

$250,000 awarded July 1, 2009 to the Arts Commission of Greater Toledo - "To support the preservation of jobs that are threatened by declines in philanthropic and other support duringt he current economic downturn, as described in application A09-904015 and the approved project budget."

Remember - the Arts Commission gets funding directly from the citizens as part of the City of Toledo's 'set-aside' for the arts. In 1977, Toledo City Council passed the 'One Percent for Art' program, which takes 1% of the capital improvement budget and spends it on art in public places each year.

And the number of jobs identified with these two programs? So far, only 2 for the $603,400 total in funds that the state and/ or city received.

Additionally Ohio has 18 Congressional districts, but Recovery.gov shows that money was spent in 9 Ohio districts that don't even exist! In fact, $3,438,956 in stimulus funds went somewhere - and there were even 3 jobs associated with those funds.

Congressional District # of jobs $ amount
21st congressional district 3 $1,241,652
99th congressional district 0 $660,000
69th congressional district 0 $400,000
87th congressional district 0 $336,108
85th congressional district 0 $250,000
49th congressional district 0 $230,000
20th congressional district 0 $208,836
54th congressional district 0 $100,000
56th congressional district 0 $12,000

And people think this same government can handle health care on behalf of every American?????

The bigger problem with this whole fiasco is that government only has what it takes from us. In order to have the money to spend to 'save or create' jobs, it has to tax us (or our descendants) or borrow and then, eventually, tax us to repay the loans. By doing this, they are removing our money from the economy and putting it toward their pet projects. If we'd been allowed to keep our money in the first place, we'd be investing it, spending it, and/or saving it, resulting in a better and more efficient use of the funds - which would result in a better economy meeting the needs of the consumers, rather than the wants of politicians.

For a better understanding of this concept, read Henry Hazlitt's "Economics in One Lesson" - Chapter Two: The Broken Window (may take a moment to download and Chapter Two starts on page 17 of the .pdf). Better yet, give a copy of the chapter to our elected officials and ask them why, in light of the lesson, they continue to do the wrong things.

For more information on how the stimulus funds are being distributed in Ohio, be sure to read Ohio Watchdog and check out their information showing the jobs 'created' in our 9th Congressional district cost over $467,000 each - and that the majority of spending has been to government entities, including the City of Toledo (roughly $23 million), the University of Toledo (rougly $45 million) and Toledo Public Schools (roughly $40 million).

I sure do hope TPS doesn't ask for a levy any time soon.

Monday, October 05, 2009

Sen. Schumer ups job losses exaggeration

I've previously written about President Barack Obama's misrepresentation of the job losses when he took office, but apparently, that exaggeration just isn't enough.

Now Sen. Chuck Schumer (D-NY) is upping the ante:

"Before the stimulus, we were losing 700,000, 800,000 jobs a month, a huge amount."

See? Now it's up to 800,000 jobs a month...

And the reason this number gets exaggerated? To make today's job losses look like improvements.

The problem is, they ARE improvements. To have 300,000 job loses is better than 400,000 or 500,000 from the months prior to Obama taking office. Everyone will agree that the numbers are still too high, but there's no need to distort the facts to try and paint an even 'prettier' picture.

Of course, they're also saying these numbers are an indication that government spending in the form of the stimulus is working, even though most of that money hasn't even hit the economy yet.

The problem with that scenario is clearly demonstrated by the similar 'cash for clunkers' spending. The minute the money ran out, so did the supposed 'stimulus.' But that just leads to calls for even more government spending by those on the left....a vicious downward spiral because, as Margaret Thatcher once said, eventually you run out of other people's money.

H/T Warner Todd Huston at Publius' Forum

Tuesday, August 04, 2009

$4500 Cash for Clunkers causes $5000 loss for businessman

The law of unintended consequences is alive and well when it comes to the Cash for Clunkers program.

Auto parts dealers and scrap yards are required to destroy the cars turned in under the program. They have to 'freeze' the engine and crush the cars - many of which are in pretty good shape, as this video from WSPD shows:



Clunkers Program Not Good for All, Junk Dealers Say

Scrap Yards Call it a Waste of Money
By WSPD's Aaron Brilbeck


While the government and local car dealers are hailing the "Cash for Clunkers" program as a success--some local scrap-yards are calling it a huge waste of money. At Nationwide Autoparts in South Toledo, owner Zyad Humos stands next to a Mercury S-U-V that looks practically brand new, and shakes his head in disgust as he's about to crush a 1999 Lincoln that doesn't look like a clunker.

The program requires Humos to destroy the vehicles, but he says if he sold the Lincoln for parts, he could easily get $6,000 for it. And, he says, in the past week he's crushed about two dozen cars in similar shape
.

So the government borrows billions to give $4,500 to dealers for certain cars to be turned in and destroyed, and the aftermarket - used car dealers and auto parts suppliers - is losing money ... more money than the rebate.

So if the overall long-term loss of money from the market is much greater than the temporary rebate, how does this 'stimulate' the economy?

And idiots in Washington think this is such a good a idea that they want to put another $2 billion toward it? Insanity!

Monday, July 20, 2009

Stimulus funds - where's the cheese?

Interesting...

According to Recovery.gov, the Department of Agriculture has awarded MICELI DAIRY PRODUCTS COMPANY in Cleveland, $1,562,568 for "mozzarella cheese."

That's a LOT of cheese!

According to the company's website, they are a family-owned and -operated cheese manufacturer that specializes in ricotta - "a national leader in ricotta production and the entire Italian cheese industry." They also make mozzarella.

According to a press release issued by the USDA, the cheese (and other food products) were purchased by the government for distribution to food banks and other entities that feed the needy, like food pantries and soup kitchens. They purchased 837,936 pounds of mozzarella cheese.

Monday, June 15, 2009

Feds order Ohio to use stimulus funds for shovel-ready projects

A press release from U.S. Rep. John Boehner:

Boehner Statement on Federal Officials Ordering Ohio to Shut Down Its Transportation Slush Fund

WASHINGTON, D.C. – Congressman John Boehner (R-West Chester) issued the following statement after federal officials ordered the Ohio Department of Transportation to kill a $57 million slush fund to study projects and put the money into shovel-ready projects:

“The stated intent of the so-called stimulus package was to create jobs, and certainly a $57 million slush fund studying projects did nothing to achieve that goal. With Ohio’s unemployment rate the highest it’s been in 25 years, I’m pleased that federal officials stepped in to order Ohio to use all of its construction dollars for shovel-ready projects that will create much-needed jobs.”

NOTE: Ohio’s Republican congressional delegation wrote to U.S. Transportation Secretary Ray LaHood in April asking him to investigate Ohio’s plans to create the slush fund after media reports disclosed the fund’s existence. U.S. House Republicans also wrote to Gov. Strickland expressing their frustration that Ohio would spend money to study projects that may never get built while denying shovel-ready jobs that would create jobs immediately.

This is second allocation of “stimulus” dollars Ohio has been forced to rescind. Last week, the Ohio Environmental Protection Agency reversed its decision to award $1.1 million to clean up a Cold War-era weapons facility that was declared clean two years ago. Despite continued misuse of “stimulus” dollars, Gov. Strickland refuses to establish an independent, bipartisan oversight board to ensure Ohioans that their federal tax dollars are being spent appropriately.

Boehner represents Ohio’s 8th District, which includes all of Darke, Miami and Preble counties, most of Butler and Mercer counties, and the northeastern corner of Montgomery County. He was first elected to Congress in 1990.

Tuesday, May 05, 2009

Where do states get most of their funds?

The answer might surprise you, as most would think that income, property and sales taxes are the primary sources of funding for the states.

However, this USA Today story indicates otherwise:

"In a historic first, Uncle Sam has supplanted sales, property and income taxes as the biggest source of revenue for state and local governments.

The shift shows how deeply the recession is cutting. Federal stimulus money aimed at reviving the economy and a sharp drop in tax collections have altered, at least temporarily, the traditional balance of how states, cities, counties and schools pay for their operations.

The sales tax had been the No. 1 source of state and local revenue since the mid-1970s, according to the Bureau of Economic Analysis. Before that, property taxes were the primary source. That changed in the first three months of 2009."

Getting funds from the feds means that states will not cut back when they need to. In fact, despite making cuts in the budget, Ohio is actually expanding some programs, by increasing eligibility to allow middle- and upper-middle-class families to participate.

What many fail to realize is that, eventually, people in the states will have to pay - in one way or another - for all those federal funds coming our way. Then what?

Saturday, February 21, 2009

Porkulus protest

Fellow Samsphere blogger, Kansas Meadowlark, has a great photo essay of today's 'porkulus protest' in Overland Park, KS.

I think my favorite sign from the event was the one which said:

"We pay our Reps to read bills before voting."

Thursday, January 29, 2009

The 'appearance' of economic growth

This morning on NewsTalk 1370 WSPD, a caller had a question for Rep. Bob Latta who was scheduled to call in to discuss his no vote on the stimulus bill.

The caller wanted to know why Latta would vote no on the bill when there was a sod company in his district that might have benefited by one of the provisions in the bill - to spend $20 million on sod for the National Mall.

Latta explained that the bill as a whole was bad and wouldn't do what was promised - but there's an even better answer that demonstrates the reason why conservatives don't support government spending as 'economic development.' However, given time constraints, Latta probably wouldn't have been able to give it.

Suppose, for instance, that the local sod company decided to go through all the headaches and red tape of doing business with the federal government and then actually got part of the contract for supplying the sod. The owner would have a single large order paid for with tax dollars.

Now, those tax dollars have to come from somewhere, so either the government borrows the money (increasing our debt and subtracting dollars from future projects in order to meet the interest payments) or it taxes us more in order to raise the funds. It could also print up more bills, leading to inflation.

Regardless, the government 'takes' (in one form or another) the money from us. That means that none of us have the funds to replace our own sod. The local company has the single order which probably won't be duplicated. Potential customers in this area are left with less funds so they won't be ordering from him. Government - in spending this way - creates the appearance of economic growth, but no growth has actually occurred.

Now, if the government gave every taxpayer (not every citizen, but everyone who actually pays taxes) a reduction in their tax rates, every taxpayer would have more money. Those taxpayers would then either spend it, invest it or save it. If they spend it, they generate the activity that leads to economic growth, creating a demand for products and services. If they invest it, it provides the equity and funds for companies to do capital projects, like upgrading equipment or facilities. Again, that generates the activity that then leads to economic growth. If they save it, the bank they use has higher assets and can loan more.

And the local sod company would have many potential clients with more disposable income to provide a long-term customer base for their own growth.

And all of this would happen without government spending a dime - all government would have done is change a policy.

So which is the best way to 'stimulate' the economy?

I'd say the tax cuts, but then we're dealing with a Speaker of the House who believes that food stamp handouts "bring a bigger return than the tax cuts." No wonder the stimulus bill passed.

Of course, I'm reminded of the quote from President Ronald Reagan who said:

"The trouble with our liberal friends is not that they're ignorant: It's just that they know so much that isn't so."

Tuesday, January 20, 2009

Comments on the proposed recovery act

I've been doing some reading about the proposed "American Recovery and Reinvestment Bill of 2009" and want to share with you some of the statements that stood out:

From The Economist:

"The New Deal was introduced into a world of giant organisations—of big businesses and big trade unions that were capable of striking deals with big government. But today’s economy is much more fluid. America’s most successful companies are entrepreneurial outfits like Apple and Google, which thrive on flexibility; even giant companies such as General Electric are breaking themselves up into entrepreneurial divisions. More Americans own their own companies (15%) than belong to trade unions (12%).

Many liberals are determined to bail out Detroit’s carmakers. But is subsidising weak companies really the best way to start a new era of liberal political dominance? They are infatuated with the idea of a Green New Deal. But do they really think that a Washington brains trust is the best way to nudge people to change their habits? Mr. (Peter) Beinart argues that Americans want their government to “keep their 401Ks from going down” and “their health-care premiums from going up”. But can you base a new economic order on such pie-in-the-sky expectations?"

From John Henke, one of the founding editors of TheNextRight:

"This is a crucial point. With the fiscal stimulus legislation, Democrats want to create manufacturing and construction jobs - an attempt to recreate the New Deal. But America is no longer a manufacturing economy. America is an Information Economy. Dragging us back to 1930's-era shovel projects is not economic progress. It is nostalgia."

Investor's Business Daily editorial, "Paving Projects Won't Boost Economy":

"Although it's not popular with his party, Obama might want to rethink his aversion to tax cuts. They'll actually work. How do we know? Because they have in the past. In the '20s, '60s, '80s and again this decade, new presidents also faced grim economic conditions. Each time, the president – be it Coolidge, Kennedy, Reagan or Bush – cut taxes. And each time the economy boomed. … the only stimulus that's been shown to really work is cutting taxes."

From the blog A Taxing Matter:

"But many of the tax provisions are especially worrisome. The expansion of the earned income tax credit and child tax credits probably makes sense--that gets money into the pockets of those who most desperately need help. But making the home buyer provision a subsidy? Hard to justify that on fairness grounds or efficiency grounds, especially to the extent it goes to anyone above the 40% income distribution. Providing another tax cut like the stimulus checks (albeit indirectly this time, through the worker credit) for 95% of American workers doesn't make sense either. Couples with almost $200,000 in income don't need and shouldn't receive a $1000 credit. We should give more tax cuts to people at the bottom and none to people with such high incomes. (In fact, we should be preparing everyone with incomes more than about $50,000 per capita for an inevitable significant tax increase that will be necessary to pay off the huge debts due to the recession and unpaid-for Bush wars.)"

From National Review Online editor-at-large Jonah Goldberg:

"Economist Kevin Hassett of the American Enterprise Institute notes that whatever the benefits of the proposed stimulus, they probably don’t outweigh the enormous costs of the debt we would incur. As a result of the stimulus, the deficit this year would equal the total cost of the federal government in 2000. That’s on top of $7.76 trillion in bailouts pledged by the government, according to Bloomberg.com.

The real reason the stimulus package will be gigantic is not that the smartest people with the best ideas say it needs to be. It’s that Obama’s real priority is to get the bill out as quickly as possible, which means every constituency gets something, including Republicans. Indeed, Republicans are a priority because if he can bribe them into supporting the bill, that might prevent them from campaigning against it in 2010 if it proves ineffective or counterproductive. Hence Obama’s proposed billions in tax breaks for corporate welfare addicts and the lobbyists who love them. Democrats are justly skeptical about a tax break for a company that decides not to lay off its workers.

The GOP is right to question this “shovel-ready” infrastructure “investment.” From World War II to the early 1990s, according to economist Bruce Bartlett, not a single stimulus bill succeeded at moderating the recession it was aimed at, while many bills helped invite the next recession. Bartlett supports a stimulus in theory (as do I); he merely notes that the political process tends to be just that — a political process — and it produces political results.

The best stimulus might be to trim — or temporarily eliminate — the payroll tax. That would put money in the hands of the people who need it — and know best how to spend it. But that would be “too ideological” because it rejects the assumption that government knows best, and it would reward taxpayers, not politicians."

Lastly, there is the article "Does Government Spending Bring Prosperity?" from the Foundation for Economic Education's Freeman Magazine. It was written in 1975 by Percy L. Greaves, Jr., but valid today:

"The underlying philosophy behind political spending is not new. Similar ideas have appeared throughout all history. They came to full flower shortly after the economic collapse of 1929, when unbalanced budgets were generally accepted as necessary economic measures for relieving those in distress. You could not let innocent people starve, could you?

People pointed to idle factories, unemployed workers and their unsatisfied wants. All we need to do, they said, is to get the government to start priming the pump. A little government spending would provide the would-be workers with the wherewithal to buy the things they desperately need. This would encourage businessmen to put the unemployed to work in the idle factories. This solution sounded so simple, and its political appeal was apparent. So we tried it.

People just plumb forgot all that economists had ever taught. Many desperate persons reached for whatever share they could get of the apparent prosperity that followed. Until war changed the picture, the price they paid was chronic unemployment by the millions. Are we now asking for a repeat performance?
...
When the government raises the money it spends by borrowing savings or taxing its citizens, it merely transfers spending power from private owners and to political spenders in power. This creates no new wealth. It reduces the amount private citizens can spend while increasing the amount government can spend. With less money in their pockets and bank accounts, private individuals and corporations must reduce the amounts they spend or invest. Assuming prices and wages remain the same, they must buy fewer goods and employ fewer workers on private payrolls producing what people want most.

Money spent by governments cannot create any more jobs or produce any more wealth than it can when spent by private persons. In fact, it creates less, because both the tax collectors and tax spenders must be paid a commission. Their labors add nothing to the wealth of society. The shift of the money from private citizens to political spenders must result in fewer productive jobs, and thus a smaller amount of goods and higher prices than if the money had been left in private hands.
...
Then, too, much government spending is not based on the economic principle of getting the most for the least. This permits political spenders to grant privileges to their friends. Such political plums provide more satisfaction and prosperity for nonproducers at the expense of producers. The net result must always be a reduction in the production of wealth. Any such reduction in the quantity of goods and services available in the market tends to raise all prices and thus reduce the satisfactions and living standards of every buyer in that market. So spending to help one group, laudable as it may seem, does not, and cannot, create general prosperity."

Friday, January 16, 2009

A little light reading

Considering how cold it is today (where's global warming when you need it?), I decided I needed something to keep me warm. So I'm reading the 'stimulus' legislation - sure to make your blood boil.

The text of the draft House Democratic economic stimulus bill (spending side, not tax side) is now online. As is the draft committee report.

So far, the most telling line - and perhaps all you need to know - is this, from the draft report:

The aggressive spending, regulatory and monetary reforms of the New Deal revived the economy:

When you start with a false premise, you will make bad decisions. The solution for the economy is not for government to borrow and spend and 'create' temporary jobs that end when the government spending does.

As an aside - could you please explain to me how another $650,000,000 for analog-to-digital converter boxes and education is going to 'stimulate' the economy and provide 'long-term job growth'??? And Democrats say there's no pork in the bill.

Monday, May 05, 2008

UPDATED: Tobacco settlement was for health-related expenses

Well, I thought so!

Earlier I posted about the state's idea to take tobacco settlement money as part of the funding for a supposed 'economic stimulus' plan. And I questioned why we'd be taking money out of a fund that was supposed to pay for future medical-related expenses.

Today's Blade has an article about the tobacco companies making their yearly payment for the funds and it reiterates that these funds are for health-related expenses.

So if the state wins their lawsuit and raids these funds for a nebulous economic stimulus, where will they get the money to pay for all these health-related expenses that they sued over?

Inquiring minds....

UPDATED:
Apparently, Tennessee has the same problem with their tobacco funds, as Blue Collar Muse reports. What a surprise that government spends everything it gets for its own purposes, even when money is supposed to be earmarked?

Thursday, January 31, 2008

Will the stimulus go to illegal immigrants too?

That's the question and it's permeating the internet and blogosphere. In looking for what will or might occur and what language is included in the House stimulus package, I came across this entry from The Crypt, the blog for Politico.com.

As they explain, the problem is with the way that individuals file their taxes. Many use Individual Taypayer Identification Numbers (ITIN), rather than Social Security numbers. Both legal and illegal immigrants use ITINs. If the Senate prohibits rebates to individuals who use ITINs, they'll keep some people, who are here legally, from getting the funds.

"A spokesman for House Minority Leader John A. Boehner (R-Ohio) points out that illegal immigrants are ineligible for any rebates and are committing tax fraud if they fraudulently obtain taxpayer ID numbers to file tax returns. Republicans also issued a memo Wednesday trying to defuse any controversy over immigrants and tax rebates.

"The bill includes language similar to the provisions included in the 2001 and 2003 tax relief bills designed to prevent illegal immigrants from receiving benefits," Boehner spokesman Kevin Smith said. "There is no language in the measure that would enable illegal immigrants to receive a tax rebate.”"

The real problem with this is that the IRS, not being a law enforcement agency, doesn't check to see if the person using an ITIN is in the country legally or not.

"Mark Krikorian, director of the Center for Immigration Studies, a conservative organization, says the problem is not with the economic stimulus bill but with the lack of coordination between the IRS and immigration enforcement agencies.

"If the IRS was cooperating with Social Security or DHS [Homeland Security] ... they would know who the illegal immigrants are who file tax returns," Krikorian said."

I don't care whether illegals in this country pay taxes or not. The fact that they're here illegally should be cause enough to disqualify them from participation in any so-called stimulus rebate.

Tuesday, January 29, 2008

UPDATED: Economic stimulus - who gets the rebate?

UPDATE 2: The Wall Street Journal had a good column (may require subscription) with answers about the stimulus plan. Some of the Q&A:

Q: Do I have to file a federal income-tax return for 2007 in order to get something this year?

A: Yes. "You have to file a return for the 2007 tax year in order to receive a rebate check" during 2008, says an aide to Senate Finance Committee Chairman Max Baucus.

The IRS "will calculate the rebate from that return, estimating the reduction in tax liability for 2008 that results in the rebate check," the aide says.

Q: Do I have to figure out how much I'm supposed to get this year?

A: No. You don't have to apply. The Internal Revenue Service is supposed to handle it for you. As one congressional staffer put it, "all you have to know how to do is open an envelope" -- or tell the government how to zap your money electronically into your account.

Q: Will Uncle Sam tax these payments?

A: No, say representatives of the U.S. Treasury Department and congressional tax-writing committees.

Q: But what about all these rumors that the payments will cut into what I get as my refund next year?

A: They're wrong, congressional staffers say. "Please be aware that there have been erroneous reports that stimulus rebate checks are an advance on next year's tax refund, so that any refund a taxpayer might normally receive would be reduced by the amount of the 2007 stimulus check," says the Baucus aide. "This is not correct."

Amy McAnarney, executive director for H&R Block's Tax Institute, says, "The actual credit will be calculated on your 2008 return. If you're due a higher credit, you'll get the remainder next year when you file. If you received a higher credit than you should have, you do not have to pay anything back."

"What might happen next year," a House staffer says, "is that somebody who didn't get their full amount this year could get more, based on their return for 2008. For example, if you had a child born in 2008 and you were within the income caps, you'll get another benefit of $300 next year when you file your return for 2008."

UPDATE 1: Here is the breakdown of who gets how much based upon the proposal, which may be changed by the Senate.

If your adjusted gross income (AGI) is less than $3,000, you get nothing.
If you are single and your AGI is $3,000 to $6,000, you will get $300 to $600 plus $300 per child.
If you are single and your AGI is $6,000 to $75,000, you will get $600 plus $300 per child.
If you are married and your AGI is up to $150,000, you will get $1,200 plus $300 per child.
If you are single and your AGI is over $75,000, you will get $600 plus $300 per child, less 5% for every $1,000 over the $75,000.
If you are married and your AGI is over $150,000, you will get $1,200 plus $300 per child, less 5% for every $1,000 over the $150,000.

Total package is estimated at $150 billion with about $28 billion going to individuals who paid no taxes. Timeframe for actually receiving the funds could be as early as May, though most estimates are for July or later.

ORIGINAL POST:

From Dictionary.com Unabridged (v 1.1), the definition of 'rebate':

–noun 1. a return of part of the original payment for some service or merchandise; partial refund.
–verb (used with object) 2. to allow as a discount.
3. to deduct (a certain amount), as from a total.
4. to return (part of an original payment)
5. to provide a rebate for (merchandise) after purchase.
[Origin: 1400–50; late ME rebaten (v.) < OF rabatre to beat, put down, equiv. to re- re- + (a)batre; see abate]


This means that, in order to qualify for any sort of rebate, an individual must have, by definition, first paid something. If the second definition is used, there must first be something owed in order to allow as a discount.

In sticking with the definition, only individuals who've actually paid federal taxes and not gotten all of them back as part of a refund, should be eligible for a rebate.

By definition, individuals who've paid no taxes should not be eligible for anything under this portion of the so-called stimulus plan.

Yeah - right. Who thinks that Congress or the President will insist on following the definition? Anyone?

What's going to happen is that our elected officials will take to the microphones to espouse a redistribution of wealth under the guise of 'fairness' by saying it isn't fair to give money back only to the 'rich.' That the 'less fortunate among us' also deserve some 'help.'

How fair is it to give a rebate to those who've not paid anything in the first place? If a person walks into your store and demands a rebate without purchasing the required products, you'd laugh and tell him to get lost. But somehow, our elected officials seem to think that this same scenario is not only logical but 'necessary' when it comes to the proposed tax rebates.

It's redistribution of wealth under the false assumption that taking from the taxpayers and giving cash to everyone, regardless of prior payments, will somehow stimulate the economy.

They're wrong - and any amount of common sense would demonstrate just how wrong this is. But that's never stopped them before - so expect it to happen anyway, with the hoped-for results never materializing.
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