American Elephants

House Speaker John Boehner’s Friday Press Conference. by The Elephant's Child

House Speaker John Boehner (R-OH) held a news conference at the Capitol today to talk about how the White House’s insistence on raising taxes led to a breakdown in discussions over increasing the debt limit. In a letter to colleagues, Boehner announced he would instead work with congressional leaders of both parties to pursue legislation that avoids default, reflect the will of the American people, and is consistent with the principles of the Cut, Cap, & Balance Act that passed the House with bipartisan support.

Speaker Boehner has written a letter to his Republican colleagues, explaining that the President is simply not serious, and dealing with him is useless. Obama was back again yesterday claiming that 80 percent of Americans want a balanced approach with more taxes and, well, no restraint on his investment. Obama makes up facts on the fly.

Another Democrat talking point is that the House Republicans’ proposal would reduce real GDP growth by 0.5% and 2012 growth by 2%, and cost the economy 700,000 jobs.  Economist John Taylor, looking at actual data rather than Keynesian computer models, said “Some argue that the economy would have been worse off without these stimulus packages, but the results do not support that view.

Kill jobs?  The GOP plan would potentially be a powerful job creator.

Representative Renee Ellmers Takes On Sec Tim Geithner! by The Elephant's Child

Representative Renee Ellmers R-NC questioned Treasury Secretary Timothy Geithner at a hearing on the Small Business Committee, on June 23, 2011. Congress should have paid more attention to Mr. Geithner’s failure to pay his taxes. That’s not just a minor oversight.

The Administration is Clueless About How to Create Jobs by The Elephant's Child

— The regulatory process for oil leases is holding back oil exploration and production activity in the Gulf of Mexico. The economic benefits from opening up domestic energy production would spread past the gulf states to the whole country, if producers were allowed to match industry capacity.

This is the most important finding by the House Oversight Committee which released a study “Restarting the Engine” today. The study documents a 250% increase in the deepwater permit backlog, with a near 80% decrease in plan approvals and deepwater drilling.  This means a loss of $9 billion in capital investment in 2011 and a loss to the government of $25 billion in royalties and taxes over the next 3 years.  One unexpected finding was the extent to which an increase in oil and gas activity reverberates through the broader economy. The report indicates that the slowdown is costing 230,000 jobs.

A study issued by the committee in May was scathing about the nation’s energy saying that the President has deliberately created policies which would cause energy prices to rise.

— The mass-market layoff is making a comeback, putting more pressure on an already lousy job market.  In the past week Cisco, Lockheed Martin and Borders announced a combined 23,000 in job cuts.  These announcements followed 41,432 in planned cuts in June, up 11.6% from May and up 5.3% over a year earlier.

Howard Davidowitz, CEO of Davidowitz and Associates said:

Everything in business is confidence.  You lose confidence and businesses can’t deal with that , [and] who could have confidence with what’s going on in Washington?

— President Obama is always hawking some kind of jobs plan — training more engineers, giving business hiring incentives, or creating one more commission. So it’s inevitable that McKinsey and Co., the well-known management consultants would chime in.They asked: What is the single most important step the U.S. should take to create more jobs. They teamed up with the Atlantic to ask a diverse group of economists, executives, social entrepreneurs and others to offer their solutions: [Do note that this group is “diverse”]

  • Teach job creation at our business schools— Richard Florida
  • Connect teenagers to the world of work —Dana Goldstein
  • Paint your roofs white — Bill Clinton
  • Hire people, retire things — Bill Drayton
  • Make permanent the research and experimentation tax credit— Eric Spiegel
  • Give more money to the unemployed— Clive Crook
  • Cut Corporate taxes by a third — Ross DeVol
  • Create an American infrastructure bank— Michael Lipsky
  • It’s time to repeal complex and expensive government legislation— Peter Wallinson
  • Aim for higher inflation —Matthew Yglesias
  • To create more jobs, start with the schools —Michelle Rhee
  • Increase the money in circulation — Carl J. Schramm
  • Overhaul career and technical education— Fredrick Hess
  • Lose the illusion of government job creation—Michael P. Fleischer
  • The challenge of empathy —Jody Lewen

Each of these titles represents a short essay, explaining their idea. At this point, I got discouraged, decided I would never hire McKinsey & Co. for any purpose, and left out the next ten. Didn’t anyone here study economics? Can you find the three probable Republicans or Libertarians?  Of course you can.

Why do they make this so hard? They think that the need is for government to do something, when the need is for the government to just get out of the way. Government cannot fix it, they are the problem. Businessmen keep telling us exactly what to do. •Cut back on regulation, and make sure it stays cut back. •Reduce corporate taxes sharply. •End ObamaCare, it’s going to make medicine less available and more expensive.• Stop spending on enlarging government, •the “green economy” (it doesn’t work), and •reform entitlements, •and don’t raise taxes during a recession.

Half of all U.S. jobs created in June — were created in Wisconsin! “We have made difficult decisions in our state, but they are beginning to pay off” said Wisconsin Governor Scott Walker.  Another outstanding record of job creation— Texas governor Rick Perry.

President Obama’s political ideology is clearly more important to him than creating American jobs.

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