Wednesday, November 7, 2012

An Open Letter

An open letter to Obama voters, especially those celebrating big time today:

Let me recap what you voted for, and it’s all true.

17 of Obamacare’s 21 new taxes, most of which are intentionally, with premeditation, scheduled to take effect Jan 1, 2013, will hit the middle class. They will all impact job creation, as the other four are pretty big hits to business.

As a result of Obamacare rules that are set to take effect, many employers will have to reduce their staff to part time to avoid large fees and increases. To mitigate rules like that already in effect, HHS has issued over 1,000 waivers to companies like McDonald’s, a company that provided a health care option to even their part time staff, but under Obamacare could no longer do it without the waiver unless they provided them with full on, very expensive plans.

As of 2014, no matter how healthy you are, you will no longer be able to purchase a health insurance plan tailored for you. Catastrophic only plans won’t be legal any more. You will have to buy the “Cadillac” plan, or pay the IRS a fine. That “Cadillac” plan, regardless of your religious objections, will cover birth control, abortion drugs, and sterilization procedures, as well as whatever HHS decides to add to the mandate between now and then.

All this so that 9 million Americans not eligible for Medicaid can get healthcare paid for by the taxpayers. And that estimate doesn’t include all the people who will lose their employer provided healthcare because of the increase in premiums. There are MANY other things ANYBODY will object to in Obamacare, but they were pushed out past the election and you'll start discovering them soon.

By 2014 another trillion dollars will be added to our nation’s debt, which already exceeds our annual GDP by 2 trillion dollars. Every child under 18 now owes $218,000 in debt to China, Japan, Saudi Arabia, Dubai, United Arab Emirates, many other countries, and Americans that hold America’s bonds. By 2016 our federal deficit will top $20 Trillion.

We will either be about to financially collapse or already be there. All the welfare programs, Social Security, Medicare, etc. will be unsustainable and millions will lose those benefits.

You may think we can just print more money, but that doesn’t work. We’ve already tripled the amount of money in the federal reserve and banks have been wise enough not to get that out into circulation, but the devaluation of our currency is already there. Germany tried to print their way out in the 1920s, and inflation destroyed their economy and led to the rise of the National Socialist Party (Nazis for short) on the shoulders of a charismatic leader. Zimbabwe tried it too. In both countries it took wheelbarrows full of their currency to buy a loaf of bread. Germany recently asked to audit the gold in the Federal Reserve so they can take the gold they have with us back to Germany, before it's worthless.

You may think we can stimulate our way out. Hoover passed a massive stimulus bill after the 1929 stock market crash, but we still went into the depression. FDR pushed through seven more stimulus bills in his first 6 years in office and the depression continued, and deepened. It got so bad that even his treasury secretary said that the stimuli had just made the depression worse and prolonged it. FDR still pushed through an eighth bill. It took the building of industries and loss of labor of WWII to get us out of the depression.

Japan had their “lost decade” of the 90s because they tried eight stimulus bills to get them out of the 1992 recession. Growth was stagnant and even with their technology industry, they didn’t share in the internet boom.

Ending the “tax cuts for the wealthiest” isn’t going to fix the deficit either. That step will bring in, at most, $80 BILLION a year, versus a $1 TRILLION a year deficit. That $80 Billion will be taken out of the economy, a portion of it wasted (won’t quibble on percentages, but some ALWAYS IS) and then spent on people who won’t work.

You reelected a president who let four Americans die in Benghazi and went to bed to rest up for a campaign party in Las Vegas. Numerous leaked documents and brave people who were there confirm that they asked for help, told DC it was a terrorist attack, and were told to stand down and die. Six disobedient SEALs saved the surviving 30 consulate staff, only to have two of them die while painting mortars now aimed at their safe house. They would have only painted those targets, because it exposed their location, if they thought they could depend on air support from the drones or C-130 Spectres. We had Delta force an hour away in Italy. I don’t care who gave the order, he is the CiC, it’s his call.

If not for all the people who have given up looking and left the labor force, our unemployment rate this month would be 10.6%. With tax increases on the job producers coming, this is only going to get worse. The new regulations in Obamacare will compound that. Unemployment is going to increase, thousands of employers have already indicated that.

Do you think he’s fixed the banking world? Why would he? His biggest donors are Goldmann Sachs, Bank of America, etc. Dodd-Frank imposes so many new regulations (only half of them took 4500 pages) that only big banks can survive. Already dozens of small banks have closed and it is nearly impossible now to start a new one. Big banks will get bigger because they can absorb the little ones AND the manpower required to comply with Dodd-Frank. However, nothing in Dodd-Frank stops them from making risky loans or investments, because they are still protected by “too big to fail” rules.

Obama has submitted four budgets. Not one has been passed. The last three went down 99-0 in the Senate. Other than those budgets, Harry Reid has blocked EVERY OTHER BUDGET from coming to a vote. Don’t try to claim GOP obstructionism, because it only takes 51 votes for budgets, they can’t be filibustered. The GOP House has submitted several budgets a year for consideration in the senate, and the GOP in the Senate has proposed budgets, but in defiance of the law, Reid has blocked, through procedure, any of those even coming up for discussion.

So we’ve been operating under continuing resolutions. Since CBO added the stimulus to the baseline, that means we’ve spent the stimulus every year. We’ve increased annual government spending 40% under Obama, yet GDP has been steadily falling off, and unemployment has been gradually increasing. It’s only stayed around 8% because of people leaving the work force.

Obama’s EPA has already forced the closure of around 100 of 450 coal electric plants in the US. Coal provides 42% of America’s electricity. By next summer another 200 plants will have to shut down. Electricity prices will skyrocket, which Obama promised his policies would do in a speech in 2007. He’s shut down energy production on federal lands and is trying to stop private drilling growth. Gas and electricity prices are about to go through the roof. The rich will absorb it by spending less, hiring less and investing less. How will the poor and middle class survive it? Energy costs cascade through transportation and production costs and affect EVERYTHING we buy, from food to iPhones. It will make manufacturing in America even more expensive and force more things overseas. It will increase the cost of food for EVERYBODY! Even ignoring the money printing inflation coming, these energy crushing moves alone will accelerate inflation to economy and people crushing levels.

We are headed back to double digit unemployment even BLS can’t hide. GM, according to experts, is two years from being bankrupt again, as the rescue did NOTHING to resolve their underlying issues. That is what Romney talked about in the editorial the NYT editors put that horrible headline on. He argued that GM should be shepherded through a normal bankruptcy process that let them shed the structural weaknesses that led to them being in trouble to begin with. Instead, this administration just threw cash at them, closed dealerships and pretended everything is rainbows and sunshine. Ohio voters that voted for him for “saving Detroit” are in for a big shock very soon.

Did you vote for him because Romney would “take away birth control”? That would be insane. He would have ended taxpayer funding for it and the mandate that insurance plans cover it. Most insurance plans cover it already, and even without insurance, it runs about $9 a month at Walmart, and a box of 12 condoms is around $6. He would not, could not thanks to a Supreme Court decision, ban contraceptives; he could only force people to take responsibility for their own sexual choices.

Did you vote for him because of equal pay rules? Did you know Obama pays his female staff about 78% of what he pays his men? Did you know the equal pay laws have been on the books since the 70s and all that Lily Ledbetter law did was increase the statute of limitations? Romney would not have repealed that and commit political suicide. What Romney would have done is help the millions of unemployed women since Obama took office find a job to begin with.

Did you vote to continue the 2.1 million abortions every year? Do you care that 30 million women aren’t alive today because they were aborted, usually as a form of birth control? The Supreme Court has ruled on that too, and despite challenges to Roe v. Wade every year by states, abortion is still legal, safe and common. Anything Congress passed and Romney signed would have been tossed out. So what’s left? Ending taxpayer funding of abortion. Since the majority of the country is now opposed to abortion, except in cases of rape, incest and life of the mother, it seems reasonable not to have the taxpayers pay for killing babies.

Did you vote out of your faith in God for the party that in three votes insisted on keeping God out of the Democratic platform, but it was put back in anyways? That’s right, the convention floor was clearly against it, but the party leaders put the language back in. Why was it taken out?
Did you vote for him for gay marriage? He told an interviewer during the campaign that he wouldn't do anything about gay marriage in his next term. He told Russia, through Medvedev, that after his next election he'd have more flexbility to negotiate with them and to pass that on to Putin. Russia is one of the most repressive nations when it comes to gay rights, after the Muslim countries, on the planet. Their current unrest is blamed on their suppression of "gay propaganda." Obama has also welcomed the head of The Muslim Brotherhood to the White House, an organization that not only has called for the extermination of Jews, but also the institution of Sharia law, which stones gays! He proudly helped The Muslim Brotherhood take control of Egypt.

Please comment. Please tell me why you voted for four more years of suffering by the middle class. Four more years of rising insurance premiums, increased taxes on the middle class, rising food and gas prices.

At best we will be in a depression in 2016. At worst we’ll be in outright civil war. There’s nothing to indicate, from Obama or Reid, that anything is going to change in 2013 from what he’s done already.

So please, tell me why you voted for this man.

Tuesday, July 17, 2012

A Level Playing Field

I haven’t put thoughts to computer on here in quite a while, a shame. I’ve had a lot to say at times, just never felt the urge to put it on the blog. However, Obama has done it this time.

He’s truly inspired me to sit down and destroy something he said last Friday. Real Clear Politics has the video and text. Here’s the part that has conservatives and Twitchy and small business owners steamed (emphasis mine):
“[L]ook, if you’ve been successful, you didn’t get there on your own. You didn’t get there on your own. I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something — there are a whole bunch of hardworking people out there. (Applause.)  
If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business — you didn’t build that. Somebody else made that happen.”
Somebody else made that happen? Question for our President who has never owned a business or met a payroll: How did government get the money to do the things he mentions? Is it manufactured from thin air? No, businesses grew up and hired people and with the passage of the 16th Amendment to the US Constitution started collecting taxes on those people. Up until the 1900s roads were built by businesses. Toll roads were built and run by private companies. Most of the railroad infrastructure in this country was built by private entities.

I understand the argument some could make, that business makes use of “public” facilities and services to succeed. But business also provides the VAST majority of the money used to create those facilities. The poor person paying only one dollar for that bus ride is having that ride subsidized by the middle class and wealthy who pay taxes, since almost all mass-transit systems are money losers without subsidies.

Other than the circular nature of the argument, that business uses public facilities but business pays the lion’s share of taxes to pay for those public facilities that they then use . . ., there is another problem with it: the playing field is level. Regardless of how much help the government provides or how much regulation headwind they put in the way, everybody SHOULD face the same obstacles as everybody else to starting a business. They don’t because of crony capitalism, like the green energy cronies Obama’s been wasting our money on. The government also too often picks winners and losers. I digress, all that is for another posting.

Many argue that liberals as left as Obama and the people around him believe that all money people earn, 100% of it, belongs to “society” or government and the government generously lets you keep some of it.

It ignores that most people who make “rich” level of money, whatever the moving target is, did work harder, get more schooling, and prove themselves to make themselves worth that much to a company. Are there a few that got there with nepotism or unethical behavior? Absolutely, there are bad bananas in every bunch, but that doesn’t diminish the fact that people distinguish themselves and make more money through their own hard work. A truly free country recognizes that whatever a person earns, by what they do to distinguish themselves, is THEIRS, not the government’s. If you can’t go out and take out a second mortgage, burn your life savings and put in 80, 90 or more hours a week building a business and expect to keep most of the fruits of that labor, why do it?

The government’s job is to make sure it’s a level playing field and get out of the way. The government should be enforcing contract law and create recourse for a company killing or injuring people through its behavior. That’s it.

He uses the example of teachers. Let me use school to illustrate the level playing field and unequal levels of success argument. Suppose there are ten kids who travel start in the same elementary school and stay together through high school. They have the same curriculum, access to the same classes once they are elective, and the same opportunity to study. At graduation two of the kids are valedictorians, but only one of those two took honors and AP classes. The AP student is going Ivy league, the other valedictorian is going “second tier.” Five of the others did average, C’s and B’s, and are going to community or public colleges. Three more didn’t focus, didn’t work hard and will be working minimum wage jobs for the foreseeable future.

Did the top two students “not get their on their own”? Did “somebody else make it happen”? No, obviously they worked harder, studied harder, were probably smarter and made choices about which classes to take. Like a business owner, they made the extra effort. Bill Gates and his friends purchased DOS from DRI and stuck it to Apple and IBM, but they started with just that $50,000. Hewlett-Packard started with two guys in their garage. Oil companies started with some back breaking work and luck.

What Obama is saying is that the people who worked hard, made the right choices in school, and took advantage of the opportunities in front of them should pay more to provide welfare to the people who didn’t. I believe we should take care of those who CAN’T take care of themselves, through private charity, not government. Obama believes that you shouldn’t even have to try to find work if you're on welfare.

The tax changes Obama is proposing, increasing the highest rates from 35% to 39.5%, on top of the increase in investment taxes from Obamacare in 2013, would increase the tax burden by 10% for the investors and job creators. It would increase government revenue, at most assuming the rich didn’t find other ways to protect their income, by $82.9 Billion dollars a year, 0.5% of the current annual deficit. Yet we have zero White House proposals to reduce the cost of Medicare, get Social Security under control, or to respond to the GAO report that over 120 government functions are redundant. Obama’s budgets have all gone down almost unanimously, including Democrat votes, but they ALL kept spending at current levels and deficits right where they are.
According to the Tax Foundation in an October 2011 report, “The top 5 percent earned 31.7 percent of the nation’s adjusted gross income, but paid approximately 58.7 percent of federal individual income taxes.” In short, most taxes for non-retirement social spending – the same social spending liberals are so keen on expanding – are being paid by those people liberals also say don’t pay enough in taxes – the top five percent, whose income was a relatively modest $154,643,000 in 2009, according to the Tax Foundation.
He shouldn’t be demonizing the rich for political gain. He should be thanking them for providing the money for that infrastructure . . . and all of our social programs.

The Declaration of Independence proclaims "pursuit of happiness," not happiness. Our country should provide equal opportunity, not try to force equal results.