Filed under: Capitalism, Democrat Corruption, Economy, Progressivism, Taxes, The Constitution | Tags: Compromise?, Phony Claims and False Promises, Playing Politics
President Obama made a little fiscal speech today, saying how hard he has worked, and lashed out at Congress for not giving him what he wants.
“Ordinary folks, they do their jobs. They meet deadlines. They sit down and discuss things and then things happen. It there are disagreements they sort through the disagreements. The notion that our elected leadership can’t do the same thing is mind-boggling to them. It needs to stop. So I’m modestly optimistic that an agreement can be achieved. Nobody’s going to get 100% of what they want. But let’s make sure that middle class families and the American economy and in fact the world economy aren’t adversely impacted because people can’t do their jobs.“
That sounds impressive, but he’s been in Hawaii golfing all week. And before that, it was pretty clear that he was neither involved nor willing to offer any compromise whatsoever. Nor is he willing to cut back on spending.
While he was giving his speech the Dow Jones industrial average dropped by 158 points to finish below the 13,000 threshold, at 12,938. It dropped nearly 70 points during the speech. And the Dow Futures dropped 226 points following the speech.
President Obama is interested in playing politics, and the Republicans are trying to save the economy from another recession. He wants the revenue from those who earn over $250,000 a year, he doesn’t have any intention of cutting back on spending. Spending is what he does, and his idea of “governing.” Twenty-four million Americans are out of work, want jobs, and can’t find them. The median U.S. household income has dropped $4,520 a year. So right in tune with the times, Obama has issued an executive order to end the pay freeze on federal employees, giving everybody a raise. Poor Joe Biden only earned $225,521 last year , so he gets a $6,379 increase.
My hunch, and it’s only a hunch, is that his economic advisers have told him that the economy will recover naturally now, and he doesn’t need to worry about it. That’s sort of what Christina Romer and his other economic advisers told him about the effects of the stimulus. Keynesian economic program. Pump-prime the economy with a big shot of cash and the economy will come right back— that was in 2008. Didn’t matter where he put that $825 billion stimulus money, putting it into the economy would increase demand, just what was needed. Didn’t work. Stimulus wasted.
Perhaps the economy just needed more time, more stimulus? Nope. Didn’t work. Mr. Obama now wants more revenue — which he blames on “the rich” who are not paying “their fair share.” He also wants to do another stimulus.
Unfortunately, there are over 900,000 small businesses who file their taxes as individuals, who fall into that category whose taxes he wants to raise. And they are the small businesses whose rapid growth and expansion provides the engine of new employment— except they aren’t growing and expanding, because they are getting a gigantic hit from ObamaCare, and another hit from the flood of regulations emanating from the EPA and other government agencies, and with the expected sharp raise in taxes, they are letting workers go, not hiring.
President Obama does not believe that small businesses fall into this category, for he identifies small business as the neighborhood bookstore, coffee shop and barber. The Small Business Association, however, identifies “small business” as businesses with upwards of 50 employees. Obama has remarked any number of times that these are not small business. Republican lie, I guess.
Economist Stephen Moore suggested that Republicans in the House should just pass a bill extending the Bush Tax Cuts permanently for everyone, and then pass another bill giving Mr. Obama the tax hike on “the rich” that he so much desires, and pass both on to Harry Reid and let him deal with it. Heh.
Obama has a big microphone and a compliant media, so he will probably be successful at blaming whatever happens on the Republicans, and then he will fly back to Hawaii for the rest of his vacation and more golf.