Filed under: Economy | Tags: big government, Capitalism, Free Markets, Obama Administration
The revised figures for the first quarter show that the American economy shrank by 0.7 percent — January through March. The administration did not, however try to blame it on Bush, they blamed it on the harsh winter. It was a brutal winter on the east coast and in the Midwest. It is the third quarter in which the economy has actually contracted (the other two were the first quarters of 2011 and 2014).
This has been the slowest, most sluggish recovery since World War II. The strong dollar has meant that American exports are down. but other economies are not healthy either, including China’s. The Obama administration’s big-government, big-deficit, big waste and big-regulation policies are not a recipe for growth or recovery.
A new study finds that overhead costs are exploding under ObamaCare. Another promise up in smoke. The Health Affairs Blog published a study based on numbers from the Centers for Medicare and Medicaid Services, the agency that runs ObamaCare and found that ObamaCare increased health care costs by $17 billion last year, and by 2020 will add a total of more than $270 billion.Twenty-two percent of all new spending is going to overhead, paperwork, not patient care.
The United States spends more on regulation than ever before. The amount spent has increased significantly as has the number of people who are employed to write and enforce the increasing number of government regulations. In 1990, total spending on regulatory activity was $20.6 billion. This year it will clock in at $60.1 billion, a 192% increase. The National Association of Manufacturers estimates that in 2012 the total cost of federal regulations was just over $2 trillion — 13 5 of that year’s GDP.
Is this unruly Americans who need more careful control? Not likely. It is an administration that sees power and control as a goal. Not a climate in which free enterprise can prosper.
Filed under: Politics | Tags: big government, Democrat Corruption, Hillary's Laugh
It’s just Hillary.
Filed under: Democrat Corruption, Economy, Law, Progressivism, Statism | Tags: big government, FDA Regulations, HHS Regulations
It is really easy. The Department of Health and Human Services (HHS) passed three new rules over the course of just four days in January, adding $9.1 billion of regulatory burden during the first month of the new year, a new report claims.
According to a study by the American Action Forum released on Friday, the 797 pages of new regulations will account for $9.1 billion in new costs, and mount up to 10.6 million hours of additional paperwork burden.
One of the major costs came from expansion of Medicaid, the State Children’s Health Insurance Program (SCHIP), and the state–based health insurance exchange programs — all mandated under the Affordable Care Act. The total price tag is $2.6 billion, the paperwork burden 518,432 hours. HHS has allowed 17 working days to submit comments on the 500 page overhaul of Medicaid and SCHIP.
The other two rules come from the Food and Drug Administration (FDA). Their new rules for standard for harvesting and holding produce for humans to consume, is expected to cost $3.2 billion over a 7 year period, adding another 8.8 billion hours of paperwork.
The other FDA ruling is to standardize and modernize manufacturing practices and analysis for “hazardous food” which will cost between $2.2 billion to $3.3 billion. The paperwork burden is not a joke. These two FDA rulings would require 5,005 employees dedicated strictly to red tape compliance.
Filed under: Democrat Corruption, Economy, Freedom, Politics, Statism, The Constitution | Tags: big government, Excessive Regulation, Power Grab
Regulations have flowed out of the Obama administration like trickles of water that make gushing streams and become mighty rivers. The economy is drowning in them. The rules imposed by the government have little to do with health and safety, and much to do with power and whether the government or private individuals get to make basic pocketbook and lifestyle decisions that affect their lives.
Unfortunately, it’s not just the regulators that are to blame. Congress increasingly writes laws that pass off power to unelected bureaucrats to wield broad powers to which they are not entitled. It is Congress’ job to write the bills and determine the regulation for which they are ultimately responsible, not pass it on. Each regulation has big costs for the economy in both economic growth and increased unemployment.
Here are ten of the very worst regulations from 2012, courtesy of the Heritage Foundation:
1. HHS’s Contraception Mandate
The Department of Health and Human Services on Feb. 15 finalized its mandate that all health insurance plans include coverage for abortion-inducing drugs, sterilization procedures, and contraceptives. To date 42 cases with more than 110 plaintiffs are challenging the restriction on religious liberty.
2. EPA Emissions Standards
In February, the EPA finalized strict new emission standards for coal- and oil-fired electric utilities. The benefits are questionable, the majority unrelated to the emissions targeted by the regulation. Science is determining that CO2 is not the cause of climate change. The costs are an estimated $9.6 billion annually.
3. Fuel Efficiency Standards
In August, the National Highway Traffic Safety Administration with the EPA finalized the fuel efficiency standards for cars and light trucks, for model years 2017-2025. The rules require 54.5 mpg by 2025. Sticker prices will jump by hundreds of dollars. The climate will not change because of the standards.
4. New York’s 16-Ounce Soda Limit
NY Mayor Bloomberg pushed the NY City Board of Health to ban the sale of soda and other sweetened drinks in containers larger than 16 ounces. Those who are thirsty can just buy two smaller size.
5. Dishwasher Efficiency Standards
Even the regulators admit that these DOE rules will do little (nothing) for the environment. Proponents claim they will save consumers money, cutting back on water and energy. Big increase in cost of a dishwasher, few customers will keep the dishwasher long enough to recoup the cost. Please get out of my kitchen.
6. School Lunch Standards
The Dept. of Agriculture in January published stringent nutrition standards for school lunch and breakfast programs. More than 98,000 elementary and secondary schools are affected—at a cost exceeding $3.4 billion over the next 4 years. Students are in open revolt, they hate the food.
7. Quickie Union Election Rules
The NLRB in April, issued new rules that shorten the time allowed for union-organizing elections to between 10 and 21 days. This leaves little time for employees to make a fully informed choice on unionizing. but President Obama advances the union cause at every opportunity.
8. Essential Benefits Rule
Under ObamaCare, insurers in the individual and small group markets are forced to cover services that the government deems to be essential, whether your doctor deems them essential or not. Under ObamaCare, directions will come from unaccountable bureaucrats, not your own physician.
9. Electronic Data Recorder Mandate
The National Highway Safety Administration in December issued a notice of proposed rulemaking to mandate installation of electronic data recorders (“black boxes”) in most light vehicles starting in 2014. Raises the cost of a vehicle, and invades your privacy.
10. “Simplified” Mortgage Disclosure and Servicing Rules
The New Consumer Financial Protection Bureau (unneeded agency created in phony Congressional recess) released their proposal for a more “consumer-friendly” mortgage process to simplify home loans. The simplifying rules run an astonishing 1,099 pages which were followed a month later with 560 more pages for rules of mortgage servicing. That’s what bureaucracy does.
Follow the fascination progress of government moving to control your every move. See Heritage’s funny but sad Tales of the Red Tape series on The Foundry.
Filed under: Capitalism, Economy, Election 2012, Statism, Taxes | Tags: big government, Inefficiency of Government, Overspending
A report from the Congressional Research Service (CRS) recently revealed that the United States now spends more on means-tested welfare than any other item in the federal budget — including Social Security, Medicare or national defense. Including state contributions to the roughly 80 federal poverty programs, the total amount spent in 2011 was approximately $1 trillion. Federal spending on such programs was up 32 percent since 2008.
If you believe that giving a good chunk of your income to the government because they will use it to do good and help the poor is a good thing, you might need to rethink that.
Last year the government spent over $60,000 to support welfare programs for each household that is in poverty. The calculations come from the Census, the Office of Management and Budget and the Congressional Research Service. That dollar figure is almost three times the amount the average household in poverty lives on each year.
So, if I am doing the math correctly, and $60,000 divided by 3 is $20,000, then it costs the government $40,000 to distribute $20,000 to the poor to keep them poor. So they could just mail a check for $50,000, which is approximately the median national household income, to each poor family, and thus eliminate poverty completely.
Then they would still have $10,000 per household left over to pay for stamps, envelopes and the checks, which would leave a fair amount left over to return to the taxpayers, or have a big blowout convention in Las Vegas.
That’s a fair demonstration of why Republicans oppose big government.
Filed under: Capitalism, Democrat Corruption, Economy, Election 2012, Freedom, Liberalism, Media Bias, Politics, Statism, Taxes | Tags: big government, Big Regulation, Big Taxes
What is it that the Liberals just don’t understand? Free Markets and Free People. So the people are picking up and moving out — heading to where they can be free. Businesses are moving out — heading where there are free markets. There’s a point at which promising more goodies just doesn’t work.
Filed under: Capitalism, Democrat Corruption, Economy, Election 2012, Law, Taxes | Tags: big government, Financial Armageddon, Obamanomics Failure
The 2012 election is about the economy. Even Obama admitted it in his speech at Cuyahoga Community College in Cleveland last week. Obama said:
Yes, foreign policy matters. Social issues matter. But more than anything else, this election presents a choice between two fundamentally different visions of how to create strong, sustained growth.
President Obama believes firmly in Big Government. He believes that growth, strong, sustained growth comes about because of government ‘investment’ in the economy. Government investment in new industries, government investment in new ideas, government investment in training people, government investment in education, and government investment in clean energy. That’s a lot of government investment of “government money,” which of course comes from the taxpayers. We know this because he has demonstrated over and over that this is his belief and his program.
Obama’s fiscal 2013 budget shows federal spending increasing from $2,983 trillion in 2008 to an all-time record of $3,796 trillion in 2012 — an increase of 27.3%. The federal budget deficit for the last budget by a Republican-controlled Congress was $161 billion for fiscal year 2007. Obama’s budget deficit for 2012 is $1,327 trillion — the highest in world history.
The federal debt held by the public will double during Obama’s four years. In just one term, Obama will have increased the national debt as much as all prior presidents from George Washington to George W. Bush combined.
Unemployment stands at 8.2 percent, and the CBO expects the rate to remain there for the remainder of the year. The Federal Reserve expects the growth rate to remain stuck below 2%. Obama remarked in Cleveland that “Governor Romney and his allies in Congress believe deeply in the theory that…the best way to grow the economy is from the top down.” Huh? What? His plan, “our North Star — an economy that’s built not from the top down, but from a growing middle class.” A middle class is the result of growth, not the other way around.
The foundational economic theory of Obamanomics is that even though the economy expanded “during the last few decades,” the middle class stagnated. The rich took all the money, and they ought to give it back. He has said repeatedly that the U.S. has gone off the track in the last few decades — just when the tax rates started to fall dramatically.
Obama said in The Audacity of Hope that he didn’t buy the theory that the high marginal tax rates that existed when Reagan took office hurt incentives to save and invest. In other words, he does not accept that the Reagan revolution set off a 20-year economic boom. Evidence doesn’t matter. The Left didn’t like Reagan.
Obama rejected the recommendations of his own debt commission. The Bowles-Simpson Commission would have reduced or eliminated tax breaks while lowering the top tax rate to no higher than 29 percent. This would have resulted in a huge tax increase, but the amount of new revenue would not be enough to balance the budget without restructuring of entitlements.
To fund a federal government where ObamaCare is operating and Social Security is funded and domestic “investments” are financed, the Democrats would need more revenue. They always think that higher tax rates on the rich and maybe a value added tax on everybody else will be the way to get their hands on the cash.
So we have looming on the financial horizon “Taxmageddon” — the one-year $494 billion tax increase that looms on January 1, 3013. This is not what the economy needs when it is already deep in the doldrums from over-regulation and uncertainty. The recent spate of bad economic news — everything from weak consumer sales to bad consumer sentiment is a sign that the economy continues to slow even more. Businesses, investors and, entrepreneurs can’t plan for the near future. They don’t know what their taxes will be in a few months and they can’t tell if investments they might make would be profitable. Translation: no hiring.
Congress needs to stop the disaster of Taxmageddon and end the uncertainty as soon as possible. If it doesn’t act, they risk a return to a second recession, even deeper. You might want to contact your Congressional representatives and urge prompt action.