Posts Tagged ‘ Economy ’

15.2 TRILLION and there ain’t no stopping us now

January 9, 2012 was a historic day in America.  It came and went without much notice in the press or by the millions of Americans affected.  Without Congressional approval, without a vote, without a whimper, the debt limit was automatically raised and the national debt became a record 15.2 trillion dollars.

The new debt number exceeds the total Gross Domestic Product of the entire nation,* which was $15.176 trillion in 2011.  As Americans we should be outraged.  We should recall and impeach all our elected officials who silently approved.  But will we?

No.  Most Americans don’t even realize the danger.  Most won’t care until collapse is imminent.  Then just like in Greece, riots will erupt and people will be confused wondering why they never saw this coming.  I’ve been predicting this since 2004 and writing about it here since 2008.  People smarter than me have as well, but no one listens.

Would you like some fries with that?

Some with shallow understandings of macro economics argue, “it’s a harmless debt, we owe it to ourselves.”  That’s like walking across the Sahara without water and saying, “But it’s a dry heat.”  Nor is it unlike a 900 pound man claiming the extra 1300 calories in the Monster Thickburger won’t make a difference in his 20,000 calorie per day diet.  In both examples the result is the same. Continue reading

So much time, so little honesty

So much to say

I have a few different points to make in this essay. I’d love you to read them all but I’ll list them here and you can decide. If you’re left-leaning I encourage you to at least scroll to the “The spending issue.”

  1. History shows a lot can change in 15 months – don’t count Obama out yet.
  2. Facts are stubborn things.
  3. The best defense is a good offense.
  4. The spending issue or why my boss and banker are terrorists.

Continue reading

How to Grow an Economy and Create Jobs

Contrasting schools of thought“In this present crisis, government is not the solution to our problem, government is the problem.”

— Ronald Reagan, 1st Inaugural Address, 1981


Below I present reprints of two interesting editorials.  The first makes the point that punishing the rich does nothing to further the goal of reducing poverty.  That particular goal is best achieved through job creation.  It may feel good to steal from the rich and give to the government er, poor, but the reality is those with money are the ones providing the jobs.  Don’t get me wrong, the rich can afford to pay more and should, but there is a point of diminishing returns.  As you increase the burden, more and more jobs are cut and those remaining become increasingly demanding.  This results due to business owners’ desperate attempts to hang onto profits or in many cases just stay in business.

Not a Government Policy

November 30, 2010

Michael D. Tanner is a senior fellow at the Cato Institute and the author of “Leviathan on the Right: How Big-Government Conservatism Brought Down the Republican Revolution.”

Income inequality is the wrong focus for government policy. After all, if we doubled the income of every American tomorrow, inequality would actually increase — but we would also lift a lot of Americans out of poverty.

A more expensive government is a burden that will ultimately reduce growth and make it harder for the poor to move up the income ladder.

In the context of deficit reduction, that means we should keep this goal in mind: Continue reading

Surprise, Surprise. . .The universal laws of economics are still alive!

I know it’s been a while since I last wrote to you, but at some point, I felt as though I had made my case and the need for a daily chronicle of how we were doing everything wrong was draining on me and pointless for you. I write today to add fuel to a growing fire. As elections loom and the country seems to have had enough with the depressed economic situation we find ourselves in, it’s time to compare our plight with those who have taken a different course.

Last year I wrote an article about the enormous amount of government programs the new administration was passing through. They were spending like there was no tomorrow, telling us all the while that government was the only one who could get us out of this mess. The private sector had tried and failed. The article was “That’s Great, but what do you do for an encore.” Feel free to take time to read it now if you like. . .I’ll wait. . .OK, done? I liked to turn your attention to the massive THROW DOWN I issued to Germany and Hungary. While we are spending like crazy, those two countries decided to cut taxes. Not much mind you. But cut they did. I told Germany and Hungary IT. . .IS. . .ON!!! Let’s see if spending beats cutting. . .you know. . .for like. . .the first time. . .EVER! Come on America, we can do it this time!

A year has passed and let’s check the report card. Continue reading

An honest question, why do Conservatives support business

I surf blogs.  If you’re a blogger you probably do as well.  You want to know what others are thinking.  Not just your own ideas.  At least I hope so.  Here I post a lot of opinions.  I strive to post stuff I can support and I hope for intelligent discussion.  Most people read but never comment.  That’s unfortunate because it creates a monologue rather than a dialogue.  If I’ve visited your blog you’ll more than likely know because 4 out of 5 times I’ll comment.  Unless you’re a pinhead who interjects the F-bomb every sentence, then there’s not much point, but again I digress.

Today I came across an interesting editorial from a political science major, who works as an accountant. An anonymous blogger under the moniker, Well Whiskey Friday. He was musing about the economy and wondering aloud what could be done about it.  He posed the question, “Why the blind faith in corporations to create jobs and innovation?”  Continue reading

Democrats defy logic and the public

At least we see people are starting to get it.  Unfortunately, the administration looks at polls and dismisses them.  They are undounted.  Let’s review:  Health care that will raise a family’s health insurance cost while at the same time requiring that coverage under penalty of prison is not welcome by the American public.  The administration and the leadership in Congress flip America the bird and push harder.  Global warming is revealed to be a hoax complete with intentionally destroyed data and explicit written evidence of number tampering.  Does the Administration pause and investigate?  No they defiantly press harder, seeking an international treaty that would crush what’s left of American industry, impose a global tax on Americans, then pour salt on U.S. industry by announcing CO² a hazardous waste to be regulated. Stand-by for the breathing tax, trust me it’s coming. Meanwhile unemployment remains in the double digits.  Does any of this create jobs for Americans?  Not really.

I’ll give Obama kudos, he does not craft his agenda by following polls.  President Clinton seemed obsessed, chasing  polls, however Obama seems obsessed by ideological fervor.  I’ve heard him called an empty suit and while I have not come to any solid conclusion on that, I doubt it.  I do believe he is a front man for greater powers, but I think he is completely in line with those who sponsor him.  He has a clear agenda to socialize America.  He was raised and mentored by communists, by his own admission he chose to associate himself with radicals and communist professors while in college, why then should it surprise anyone when his administrative agenda is aggressively socialist?

I’ll answer that.  I believe it is due to two things.  Continue reading

The Fix for the Economy

Business abhors uncertainty. Right now, it doesn’t know what to expect from Obama’s programs. It finds them unsettling and creating more questions than answers.

Businesses are saying they cannot assess the full impact the health care bill will have on their business models. Even the health care insurance companies are struggling to determine its impact.

Then there is the upcoming Cap and Trade fiasco waiting in the wings. This creates even more uncertainty about how it will impact their profit margin. All they know is that it will be negative. Whatever the costs, they will be passed to their customers. That means we will have less disposable income and means another negative impact upon the economy.

With so much uncertainty, business is waiting for these bills to become reality (better yet, fiction) while they are cut costs in anticipation.

On the senate docket is the Waxman-Markey climate and energy bill—aka the American Clean Energy and Security Act, ACES, H.R. 2454. That’s going to hit business structures, new homes, existing homes and transportation. It’s just another source of uncertainty about costs and what it means to business and another source of negative impact upon the economy.

Consumers are pulling back, saving their money, paying off bills but not spending it on the economy at normal rates. This creates more problems for businesses trying to weather the storm. It causes them to batten down the hatches even tighter. It’s no wonder employment rates are at historic levels.

It appears the problem affecting the economy is Obama himself. His brand of change creates fear, uncertainty and doubt.

Fixing the economy would then appear to be simple. Since he won’t resign, Obama should sit down and shut up.

If Obama were to do anything at this time, it would be to call for a press conference to announce he will not sign this version of the health care bill, that he will not sign the American Clean Energy and Security Act and that he will not sign the Cap and Trade bill. In addition, he should announce he will cut taxes for both business and individuals and will support legislation to force the banks to begin loaning to business and consumers.

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