Obama-A Socialist America?

February 15, 2013

G’Day!

I agree with Dr. Charles Krauthammer, who indicated on National TV after this week’s State of the Union address, that President Obama’s intention is to transform America into a European-style Socialist State. Many of my articles over the last two years have suggested that Obama is a “Neo-socialist” – a person who believes in government control over all aspects of the economy, including wealth redistribution, regulations, “Executive Orders,” and central planning. (Neo-socialism is different from traditional ‘Socialism,” which is based on government “Ownership” of businesses and industries.) Neo-socialists want political and economic central control over the country but not the responsibility of ownership or consequences. Unfortunately, both socialism and neo-socialism are equally destructive to economic growth and individual liberties and has historically failed or is failing in nations that have pursued it. Is this the future you want for America?

Based on the President’s “Inaugural Speech” and the “State of the Union Address”, it appears evident that Obama and the Democrats have no real intention of reducing government spending, reforming entitlements, or even seriously addressing our federal deficit and debt crises. However, they are intent on more spending, more taxes, more regulations, more debt, and less freedom for the American people. Resuming the pattern of his first term, Obama also seems to be more interested in fixing “Blame” on everyone but himself (especially Republicans) for everything wrong, when he should be exercising bipartisan leadership to resolve our problems – especially the ones he has created or aggravated. In my opinion Obama’s idea of a “Grand Bargain” is to raise taxes by every means possible, including class warfare, to fund “Bigger Government,” “Entitlements,” “Green Energy,” “Climate Control,” “Wealth Redistribution” and any other project his neo-socialist ideology deems desirable. I believe America’s best days could be ahead but “Obammunism” is not the way to solve problems and is not good for jobs, the economy, the Middle Class, or the future of our great country. We need a President who is willing to represent ALL the people fairly, exercise impartial leadership, and take responsibility for the consequences of his actions and policies.

So how has Obama really performed so far? During his first Presidential Campaign, he promised “Change” to transform our government. Unfortunately, he has been remarkably successful in moving America in the direction of European-style socialism and a culture of dependency. In only four years the size of government has increased from 20% of GDP to 25% of GDP. Our annual Federal Spending has increased from $2.9 trillion to $3.8 trillion (an increase of over 30%) and is expected to continue for Obama’s second term. Our annual Federal Deficit has increased from $0.5 trillion to over $1 trillion (an increase of 50%). Our National Debt has increased from $10 trillion to over $16 trillion (a 60% increase and now more than 100% of GDP). In the first two years Democrats passed massive new legislation for government-controlled healthcare, sweeping regulations over the financial industry, and the use of “Executive Orders” by the EPA, the Department of Energy, and the unconstitutional appointments to the NLRB to regulate personal and business use of private property and erode personal freedoms. The Democrat controlled Senate has not passed a budget in nearly four years. Welfare dependency has increased significantly and forced wealth redistribution through higher taxes on the “Rich” was recently enacted (and Obama wants more). The economic results have been the worst recovery in decades and a decline in GDP in the 4th Quarter of 2012. Clearly, Obama has delivered on his promise to “Change” our country. Are these the “Changes” for which you voted? Do you believe continuing these policies will solve our problems and advance the future for our children?

In my opinion it is not too late to correct this adverse trend toward national decline and save our nation. America can resolve its fiscal and debt crisis and restore our country to a solid foundation of responsible government and future prosperity. However, this can only occur if we return to the principles that have made America the greatest and most exceptional country in the world. These principles are: Constitutionally protected individual liberties, free markets, sound fiscal and monetary policies, economic growth, and Constitutionally limited government. The “Obammunists” are rapidly leading us away from our founding principles and toward a future of economic stagnation, shared poverty, limited personal freedom, and dependence on government for much of our survival. Under Obama, America is quickly declining into a centrally controlled overregulated neo-socialist state with increasingly limited opportunities for aspiring individuals and companies to succeed.

So what should we do? We have a republic with democratically elected representatives. It is up to us to determine and vote for the representatives that place the future of America before politics and who will stand up for the best interests of the people and the nation. The first and most vital action we can take is to become informed about the issues and vote out the “Obammunists” in the 2014 election. This one single accomplishment will at least stop the decay and give us the opportunity to correct the damage being done by Obama and the Democrats. Currently, we should demand our President and Congress concentrate on resolving our fiscal/debt crisis, get our economy back on track, and create productive private sector jobs. As I outlined in many of my 45 previous articles, this can be done and we need to do it. The American People should not be the servants of the government. Government should be the servant of the people.

The Old Guy PhD


Let’s Send Congress & The President on Unpaid Leave!

November 30, 2011

G’Day!

Let’s face the truth. Our government is doing nothing to solve our country’s economic problems and has actually made the situation worse in the last two and a half years. While not practical, perhaps the best way to create jobs and improve our economy would be to send Congress and President Obama on an unpaid leave of absence for 2012. Certainly neither is accomplishing anything of benefit and paying Congress to do nothing and President Obama to campaign for his reelection is a waste of their time and our money. Also, my real concern that they will continue to do even more harm through Executive Orders or will create new regulations that further restrict our businesses and prolong the political uncertainty that is at the heart of our economic stagnation. Since they are not doing anything meaningful, preventing all new government action in 2012 would give business the certainty of “status quo” and no further damage would be done prior to our national vote on economic policy. Withholding pay is a logical penalty for our current do-nothing government representatives and would have the benefit of reducing the deficit. Since their priority is reelection, this would give them the freedom to try to convince the electorate that they support policies that will protect our freedoms, promote jobs and economic growth, and deserve to be retained in office.

To be fair, let’s review a few of the major government results since the 2008 election. Our total deficit has increased by $4 trillion and the annual deficit more than doubled from $500 billion to $1.3 trillion/year. Government spending has increased from approximately 20% of GDP to 25% of GDP. National Debt has now increased by nearly 50% to an estimated $15 trillion, nearly 100% of GDP. New entitlement commitments through “Obamacare” was passed against the desires of the majority of American voters and will further increase deficits and debt in the future. The Dodd-Frank Financial Regulations Bill was passed, which significantly increases regulations over the financial services industry and has currently added to the turmoil, confusion, and stagnation in our banking system. The Energy Department and the Environmental Protection Agency (EPA) have virtually shut down domestic development and exploration of fossil fuel resources, have wasted billions of taxpayer dollars in support of noneconomic renewable energy companies (Solyndra et al), and have again delayed the proposed pipeline from Canada (Note: Canada is now threatening to sell the oil to China). The Department of Justice (DOJ) tried to bring the terrorist prisoners back into the US to be tried under US laws, supported the sales of guns to criminals and is delaying business mergers, which will improve the competitiveness of American companies. The Federal Communications Commission (FCC) has joined with DOJ in attacking the proposed merger of AT&T and T-Mobile. The pro-union activist National Labor Relations Board (NLRB) is attempting to stop Boeing from finalizing its new “Dreamliner” plant in the Right-to-Work State of South Carolina and is attempting to change voting rules to eliminate the requirement for secret ballot for unionization in a company. The do-nothing Democrat-controlled Senate has passed no government budget for approximately three years and has blocked attempts by the Republican-controlled House to pass fiscally responsible legislation. Not an appealing set of accomplishments.

President Obama is and has been in re-election campaign mode for months and has virtually abdicated leadership to resolve our unsustainable deficit and debt crises. In fact, Obama has significantly added to the magnitude of these problems by his uncontrolled increases in government spending, Obamacare, and the overall anti-business attitude of his administration. Obama ignored the excellent recommendations of his own Bowles-Simpson Debt Reduction Commission, which addressed all areas of the deficit and debt crises including increased revenues through tax reform, entitlement reform, and decreased government spending. Obama has also provided no apparent advice or leadership for the failed “Super Committee” and it now appears to have been designed to fail in order to create a political issue for the next election. As Governor Christie of New Jersey said this week regarding Obama’s lack of leadership, “What the hell are we paying you for?”

Enough is enough. Given the stalemate in Congress and an absentee President focusing on his own reelection, we should, if we could, send them all home on unpaid leave until the next election. Unfortunately, we need to have this election ASAP and not a year from now. The will of the American people needs to be determined regarding whether free market capitalism and individual freedoms or redistributive socialism and big government central planning is preferred. Personally, I vote for individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government.

The Old Guy PhD


Is “The American Dream” Dying?

October 16, 2011

G’Day!

Yes, the traditional “American Dream” is probably dying if the divisive socialist and antibusiness policies of President Obama, the Democrats, and the Unions continue to be supported by our government. Already much damage is being done by the passage of Obamacare, the Dodd-Frank Financial Regulations Act (including the new Bureau of Consumer Financial Protection and the Durbin Amendment), the EPA, the NLRB, and now full force “Class Warfare” by the President to divide the country in an apparent attempt to be reelected. Martin Luther King Jr’s memorial opens this week and his famous “I have a Dream!” speech was about national unity and equality of opportunity not class divisions and wealth redistribution. If we want to preserve our freedoms, our opportunities, and our exceptionalism as a nation, these destructive attacks on our economy, attempts to divide the American people, and collectivist “nanny-state” policies must be stopped and reversed. We must protect and preserve “The American Dream” for future generations and ourselves.

Our traditional view of “The American Dream” is based on the principles our Founding Fathers and Patriots risked and gave their lives to secure for our country and our future. These values were documented in The Declaration of Independence, The Constitution, and The Bill of Rights. Primarily these values are: guaranteed individual freedoms (especially from government), equal opportunities for all Americans, decentralized governance BY THE PEOPLE, free market capitalism based on private property ownership, and a specifically limited-power federal government. These fundamental principles have provided all Americans the opportunity to choose our careers, succeed (or fail) based on our own decisions, and retain the fruits of our labor reasonably free from oppressive regulations, unnecessary controls, and excessive taxation. These freedoms and privileges essentially stood for over a century from our nation’s founding until the passage of the 16th Amendment in 1913 authorizing direct federal taxation. Since the authorization of direct federal taxation these basic rights have been inexorably eroded as the size, scope, controls, and restrictions by government over our lives and our economic opportunities has expanded. It is time to get government off our backs and return to our traditional vision of success embodied in “The American Dream”.

The socialist and antibusiness agenda supported by President Obama and his allies is accelerating the destruction of this dream. Obama’s alternative is a collectivist society of mandated wealth sharing, unsustainable federal spending, high taxation, limited individual and business freedoms, and highly centralized governance. Obama appears to want a federal government with virtually unlimited power to regulate, control and dictate our lives, our property, and our businesses, including the transfer of wealth from those who have created jobs and earned it to those who have not. Just look at the current “Occupy Wall Street” mobs that have picked up Obama’s message and essentially want to destroy the capitalism that made our country great. Socialism doesn’t work as the former Soviet Union and most European countries, especially Greece, have learned. As Margaret Thatcher said, “The problem with socialism is that you eventually run out of other people’s money”. Is this the vision of America’s future that you support?

So how has the growth of “progressive” or socialist policies influenced “The American Dream” over the last century? Federal income taxes have “progressed” from a maximum rate of 7% in 1913 to a current rate of 35%. Obama and the Democrats are proposing to raise this rate to 40%. (Note: this rate does NOT include the approximate 15% in federal “payroll taxes” additionally paid by employees and employers or State and Local taxes.) Federal government spending has “progressed” from 3% of our national economy in 1913, to a current level of 25% under President Obama (an increase in the size of government by 5% in just two and one-half years by Obama). The number of federal government agencies, bureaus, departments, and employees has exploded since 1913 under both Republicans and Democrats. This was especially true under President Roosevelt’s “New Deal”, President Johnson’s “Great Society”, President Bush’s “Prescription Drug” legislation, and now President Obama’s “Healthcare” and “Financial Regulations”.

The Obama Administration alone has more than doubled the ANNUAL Federal Deficit, increased the National Debt by approximately 40%, increased the cost, uncertainty, and complexity of healthcare, and passed sweeping and largely unnecessary regulation over our essential financial industry. Obama’s healthcare plan alone creates an estimated 159 new agencies and the Dodd-Frank Act requires an estimated 387 new regulations across 20 agencies. The EPA under Lisa Jackson wants to implement and administer new business and job killing environmental regulations that are projected to cost tens of thousands of jobs and increase our energy costs. Essential domestic fossil fuel exploration and development in America has been virtually shut down. (Note: Opening our domestic energy resources could create hundreds of thousands of good American jobs and improve national energy security.) Among other pro-union activities, the National Labor Relations Board (NLRB) is attempting to stop final implementation of Boeing’s new “Dreamliner” factory in South Carolina. The Department of Justice (DOJ) under Eric Holder is disrupting our legal system, suing States for trying to enforce immigration laws, and interfering with mergers that would improve the competitiveness of American Business. Obama’s failed economic policies have stifled business and job creation, stagnated our economy, and significantly expanded the size and spending of our government. These policies are radically advancing an unsustainable European-style centrally planned socialist welfare state for our country and eroding our individual and economic freedoms. Are these “progressive” social policies enhancing our lives or your vision of “The American Dream”?

If we don’t stop this madness and get the government off our backs and our businesses, “The American Dream” of opportunity and success will continue to die and may be destroyed. A nation cannot be successful by confiscating wealth from those who create it and redistributing it to those who do not. Leftwing collectivist policies do not work. These are not the foundation of freedoms and opportunities upon which our country was created and which made America great. It’s time to take back our country and restore “The American Dream”. Let’s get to work!

The Old Guy PhD


Yes, We CAN Grow the Economy and Create Jobs – Redux

September 30, 2011

G’Day!

On June 10 I posted the below article on the above subject. To date the Obama Administration and Congress have failed to act on any of the issues and suggested solutions presented. The article is still essentially accurate after three (3) months of non-action and is repeated below for those who missed it. We must get our government working for the people and not for themselves. I hope you join with me in advocating responsible government that supports individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government! Let’s get to work!

Obama and the Democrats have tried and failed with virtually every centrally controlled socialist alternative to stimulate the economy and create jobs. The only jobs they have really created are in government. The so-called recovery is the weakest in decades and may be about to “double dip”. Big collectivist government solutions have failed miserably (see “Big Government IS Our Problem!”). Obama and the Democrats only answer to this failure has been to blame it all on Bush. They claim that without their $4 trillion dollar taxpayer & debt funded stimulus, nationalization of businesses, increased healthcare regulations and spending, increased financial regulations, and extreme monetary easing by the Federal Reserve, it could be worse. The only thing that worked has been TARP and that was enacted under President Bush! It is time for government to stop regulating, remove the uncertainties facing business, get out of the way, and let the free market and capitalism work. You do not create jobs by taking wealth from those that generate it, siphon off government administration and oversight, and redistribute less of it back into the economy.

Economic growth and job creation is about free markets, minimum regulations, incentives, and opportunities in the private sector. Government doesn’t create jobs; the private sector creates jobs. Government also doesn’t create opportunities but it can discourage or prevent them (think energy policy) and it can and does distort the market through politically motivated subsidies or tax deductions for selected industries. If taxation and regulations are minimized to the level necessary to support the essential role of government as defined in our Constitution, business will take advantage of whatever opportunities are available in the marketplace and the economy will grow. Unfortunately, the Obama administration and the Democrats in Congress do not understand this. They apparently believe that a few “elites” (themselves) in government are smarter than the millions of consumers and business managers throughout the global economy. They have imposed on American business a climate of increasing regulatory restrictions, increasing healthcare costs, high business taxes, and increasing uncertainty as to what they will do next. In this centrally controlled environment, it is no surprise that American businesses are not currently hiring or investing in our country. The regulations and costs just in Obamacare and the Dodd-Frank Financial Regulations Act are particularly harmful and businesses are wisely waiting to see what the government will force on them next.

So what needs to be done to create jobs and get our economy back on track? At least six actions could and should to be taken: 1) Stop/Minimize non-essential regulations, 2) Have a business-friendly government, 3) Reduce tax rates, especially on business, through tax reform, 4) Enact an energy policy that encourages rather than discourages development of domestic sources of traditional energy, 5) Fix the fiscal and debt crises by cutting government spending, revising entitlements, and increasing tax revenues through tax reform, 6) Pass the three pending Free Trade bills and expand them to include other trading partners.

First, a moratorium on new regulations should be declared and all regulations associated with Obamacare and Dodd-Frank (especially the Consumer Protection Agency) halted until after the next election in 2012. The uncertainty overhang from these two bills alone is stifling hiring and investment by business. Ultimately, all regulations, both existing and new, should have a “sunset clause” that requires our government to formally reaffirm their need at pre-set intervals, perhaps every ten years. This would insure that outdated or unnecessary laws do not become permanent.

Second, President Obama needs to realize that his collectivist socialist policies don’t work and become truly business-friendly. It is no secret that the current administration is pro-union, pro-environmentalist, and anti-business as evidenced by numerous actions by himself and the Administration’s Departments and Agencies. The pro-union/anti-Constitution actions by the NLRB against Boeing in South Carolina (see “Attack on American Business by Obama “packed” NLRB!”) and the many actions of environmentalists against any form of energy development (drilling in the Gulf of Mexico, Shell Oil off the coast of Alaska (see “Obama Administration Attacks American Business Again!”) are not conducive to economic growth and job creation. This week the issue of an energy pipeline from Canada to Texas has also come under attack by environmentalists. These and other obviously pro-union and environmentally biased activities against businesses (and some States) should be halted and free markets given an opportunity to function.

Third, tax reform is essential to both economic growth and reduction in the deficit (see “Fiscal & Debt Crises – Tax Reform essential!”). As the referenced article indicates, there are several excellent proposals available and Republican presidential candidate, Tim Pawlenty, just added another this week. All are pro-growth and pro-job creation and all will work by providing incentives for private sector investment IN THIS COUNTRY, not abroad. Naturally, the Democrats, who believe in centralist government solutions and not in free markets, are generally opposed to all of them. Perhaps the easiest, most immediate, and most beneficial tax reform is to reduce (or eliminate) corporate tax rates to a level equal to or less than the major nations with whom we compete and simultaneously eliminate the politically motivated subsidies and deductions that distort the market. Currently US corporate taxes at 35% are highest in the developed world and actually represent double taxation on income, first at corporate level and again at personal level, when distributed as dividends. Additionally, the high US corporate tax rates discourage US based international companies from repatriating foreign profits back into the US because, if returned, they are taxed at the higher US tax rate. Our current tax policy encourages investment abroad and discourages repatriation of profits back into America. This is a job killer, not a job creator. Is our government crazy?

Fourth, enact a domestic energy policy that encourages rather than attacks development of domestic sources for traditional energy. This will create thousands of good jobs in our economy and reduce our dependence on foreign energy supply. For far too long we have allowed the environmentalists to dictate policy and stagnate domestic energy growth. Every rational person knows America will be dependent on fossil fuels for decades. Yes, development of alternative energy forms and technology is important but there is no chance “green energy” is going to be a replacement for traditional energy sources, including nuclear power, any time soon. It is madness to exclude active development of domestic fossil fuel sources and nuclear power from our alternatives just to satisfy a few environmentalists with unproven science and questionable computer projections. If “green energy” was a viable economic solution, we would not need a policy or subsidies to support it. Also, independent of the longer-term cost benefits from domestic production, the extremely high and increasing risk of supply from the foreign sources is a very dangerous national security concern. The Middle East is in turmoil and no one knows how it will turn out. Without domestic alternatives, American could find itself with an energy disaster, which could seriously endanger our economy. We must actively develop domestic energy to create jobs in America, sustain our economy, and reduce our global supply risk.

Fifth, resolve our short and long term deficit and debt crises. We must get government spending and the dual debt and deficit crises under control (see “Bowles & Simpson Have it Right!”, “Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!”, “Is Obama Really Serious about Debt Reduction?”). Our Government is too big, too oppressive, and exercises too much control over the American people and business. The current policies are sucking money from business and taxpayers, adding more public sector union layers of government control, stifling business growth, and reducing America’s ability to grow and prosper. As stated above, in a free market economy with protection for the freedom of individuals and businesses, the private sector creates jobs. Since his election, Obama has expanded the size and scope of government control far beyond the level any freedom-minded citizen would have imagined possible. Simultaneously, Obama has also increased our federal deficit by $4 trillion and increased our national Debt by approximately 40% to $14.3 trillion. Relative to GDP the size of government has increased from approximately 20% of GDP to over 25.5% of GDP, a 5% increase in the size of government relative to our economy in less than three years. Without correction, our deficit next year is expected to be another $1.6 trillion and in ten years our national debt will grow to a staggering $22 trillion! Does anyone think this makes sense? My article last week, “Is Our Government Broken? – Redux!”, provides more information on this critical issue.

Sixth, pass the Free Trade Agreements for South Korea, Columbia, and Panama. These proposals go back to the Bush Administration and should be easy to pass. I believe nearly everyone including the President and many Democrats support them. As usual, politics is holding them up. Free trade works and provides value through additional products and services at lower costs to all American consumers. Only unions are opposed to free trade because, in the short term, it may reduce union jobs in non-competitive industries. Over 200 years ago, Adam Smith established the unchallenged principle that the wealth of a nation was based on the goods and services available to its citizens. Free trade allows this to work for the benefit of all consumers. It’s time for the unions to realize this and support what’s good for the nation over what’s good for the union.

Yes, we CAN solve our problems, if we have the political will to do so. This country was founded and prospered on the principles of individual freedom, free markets, sound fiscal and monetary policy, and limited government. Let’s get back to our foundations and demand that our elected representatives in government get to work.

The Old Guy PhD


The Tea Party – Patriots or Terrorists?

August 21, 2011

G’Day!

Members of The Tea Party ARE true American “Patriots” and definitely NOT “Terrorists” or “Racists” or “Crazies” or “Fanatics” as accused by liberal politicians! I am not a Tea Party member but am appalled by the inaccurate, unfounded, and demonstratively biased political attacks on them by the Obama Administration, Congressional Democrats, and segments of the Liberal Media. The ONLY reason for these attacks is that the Congressional members of the Tea Party movement are willing to stand up for our nation’s long-term constitutional principals of individual freedoms, free markets, sound fiscal and monetary policy, economic growth, and limited government. Congressional Tea Party members have NOT been willing to make the short-term compromises of these principles typically characteristic of our political representatives. GOOD FOR THEM! We need more elected members of Congress who are willing to take a stand for what is right for our country not for what is convenient for reelection or supportive of bigger and bigger federal bureaucracy and spending. Political compromise is not necessarily progress and, given our current fiscal and debt crises, is not in the long-term interests of the American people. OUR GOVERNMENT GROWTH IS OUT OF CONTROL, UNSUSTAINABLE, AND MUST BE STOPPED AND REVERSED! The Tea Party is trying to accomplish this.

So what is “The Tea Party” and why are Obama and the Democrats so terrified of them that they are aggressively engaging in political demagoguery in an attempt to discredit their positions and influence? First of all “The Tea Party” is not a political party (yet). The Tea Party is a “movement” by ordinary Americans of all parties who are fed up with the encroachment by federal government into our personal lives, our business commerce, and the inexorable increase in the magnitude of our government spending and debt. The Tea Party is trying to correct this, which is the primary reason the Obama Administration and Democrats with their tax and spend big government socialist policies are attacking them.

Perhaps the most accurate and concise summary of what The Tea Party stands for is on TheTeaParty.net website, which describes supporters as follows:

“The Tea Party movement is a grassroots movement of millions of like-minded Americans from all backgrounds and political parties. Tea Party members share similar core principles supporting the United States Constitution as the Founders intended, such as:
•  Limited federal government•  Individual freedoms•  Personal responsibility•  Free markets

•  Returning political power to the states and the people

As a movement, The Tea Party is not a political party nor is looking to form a third political party any time soon. The Tea Party movement, is instead, about reforming all political parties and government so that the core principles of our Founding Fathers become, once again, the foundation upon which America stands.” 

So what’s not to like? Who among true hard-working Americans willing to challenge forced dependency on government could object to these core principles? It is no wonder that Obama and the Democrats object to and attack them because The Tea Party’s core principles are diametrically opposed to those of Liberal Democrats. The Liberals are leading us down a path of less support for our Constitution, bigger federal government, greater government control over our lives, more regulation of what’s left of our free markets, more central power for the federal government and less freedoms for the states and the people. Contrary to the “Blame Game” against The Tea Party, the real “obstructionists” in government are Obama and the Congressional Democrats, who refuse to address the fundamental causes of our fiscal and debt crises, such as government growth and entitlement spending.

Let’s review a few of the activities Obama and Democrats have initiated in just the last two and one-half years. Since Obama was elected, Federal Government ANNUAL spending has increased “relatively” from 20% to 25% of GDP and “absolutely” from $2.9 trillion to $3.8 trillion, the ANNUAL deficit increased from $500 billion to 1.7 trillion, and our total National Debt has increased by 40% from $10 trillion to over $14 trillion (and an additional $2 trillion increase has just been authorized)! The Democrats in Congress have not passed a Federal Budget for over 800 days and have so far this year rejected all attempts by the Republicans to pass one for next year! The budget proposed by President Obama earlier this year continued his excessive government spending and added another $10 trillion in deficits and debt over ten years, (fortunately, both parties in Congress overwhelmingly rejected the President’s budget). Over the objections of a majority of the American people, they passed Obamacare and the Dodd-Frank Financial Regulations legislation, both of which add additional costs, additional regulations, and additional central control to our federal government. During a Congressional Recess without Senate approval, Obama appointed union activists to the National Labor Relations Board who have attacked Boeing’s implementation of a new non-union factory in Charleston, SC, (see “Attack on American Business by Obama “packed” NLRB!” and “Obama “packed” NLRB Continues Attack on Boeing & Free Markets!”) and the EPA under Lisa Jackson has stopped a Department of the Interior’s previously approved Shell Oil request to development a large oil reserve off the Alaskan coast, (see “Obama Administration Attacks American Business Again!”). They have allotted $27 billion for “Green Jobs”, which have not worked out well and have virtually shutdown oil and natural gas development (at a loss of thousands if not hundreds of thousands of good jobs). In summary, the obstructionist policies of Obama and the Democrats have produced a Congressional stalemate, hurt our economy, are stifling job growth, are hostile to business operations, and have increased our deficit and debt crises. What part of reckless and unsustainable spending, destructive regulations, and excessive government control of free markets and personal liberties don’t Liberal Democrats understand? It is no surprise that they feel threatened by The Tea Party.

Regarding taking responsibility and showing leadership, Obama has been demonstratively invisible. During his recent “Black Bus Tour” (in a bus made in Canada), Obama has blamed Bush, The Tea Party, Republicans, Congress in general, the earthquake in Japan, the Arab Spring, and the European Debt Crisis for our current economic problems. Never once did he admit or even suggest that his policies of irresponsible spending, uncontrolled borrowing, and increased federal regulation were part of the problem (see “Government Imposed Uncertainties Hurt Economic Growth!”). Other than the President’s outrageous budget proposal noted above and his endless generic campaign speeches, Obama has offered NO SPECIFIC PLAN to solve our economic problems and create jobs. Like Democrats in Congress he has been content to “kick-the-can-down-the-road”. Astounding behavior for the so-called leader of the free world! Again, it is no surprise that the President is afraid of the patriots in The Tea Party, who actually have a plan to get America back on track and are willing to take responsibility for it.

So, can we resolve our problems? In a previous article I outlined, six (6) specific suggestions, which I believe would improve our situation (see “Yes, We CAN Grow the Economy and Create Jobs!”). If our President and Congress are serious about solving our problems and restoring our economy, all of these suggestions could be accomplished quickly and all are consistent with the goals of The Tea Party. Overall, the message is to reverse the socialist movement toward a “nanny state”, get government off our backs, and return our country to the American people. Because most of my suggestions require reversal of Obama’s policies, it is unlikely that they can be pursued before the next election in 2012. Therefore, the 2012 election will be critical to our future as a great nation. Think about it and act accordingly!!

The Old Guy PhD


Obama “packed” NLRB Continues Attack on Boeing & Free Markets!

June 17, 2011

G’Day!

The Obama Administration and the National Labor Relations Board (NLRB) continue their anti-business, anti-free market, and pro-union (not pro-labor) socialist attack on the Boeing Corporation and “Right-to-Work” States (see “Attack on American Business by Obama “packed” NLRB!”). The NLRB was originally intended to be an impartial arbiter of labor elections and management/labor disputes, if necessary. Under Obama, the NLRB has become a pro-union activist, anti-business organization and is now hurting job creation in America.

How did we reach the situation where the NRLB apparently defines only “union” jobs as “good” jobs and is willing to support union membership over job creation? During the March 2010 Congressional recess, Obama temporarily “packed” the NLRB by filling 2 of the vacant positions with Craig Becker and Mark Pearce without Senate confirmation. Subsequently Pearce and a Republican nominee, Brian Hayes, were confirmed by voice vote in the Senate in June 2010 but Becker was not. Becker, a union activist and former Associate General Counsel of the AFL-CIO & SEIU, remains a temporary voting board member until the end of 2011. Obama also appointed “Acting” General Counsel, Lafe Solomon, during the same Congressional recess. This currently gives the NLRB a majority of members supporting activist union causes and biases their decisions in favor of “union” jobs and against American business.

The International Association of Machinists & Aerospace Workers Union (IAMAWU) are attempting to stop Boeing, America’s #1 exporter, from final implementation of the firm’s new “Dreamliner” factory in Charleston, South Carolina. South Carolina is one of 22 “Right-to-Work” States, which don’t require (or prevent) hiring union workers and account for 7 of the top 10 and 10 of the top 15 in the “2010 Best States for Business” report. To date, Boeing has already invested approximately $1 billion and hired approximately 1000 workers in South Carolina. (Please note: the new workers in South Carolina independently decided to be non-union!) Boeing had $29 billion in exports in 2009 (nearly 2% of our country’s total), directly employs over 160,000 workers, and is indirectly responsible for approximately another 1.2 million jobs.

Boeing is not required to employ union workers in South Carolina or obtain union permission to build a new plant anywhere in the US or the World. However, the history of union disruptions and delays in Washington State could support moving their entire business operation out of Washington State. Boeing has not done this. Instead Boeing is hiring 2000-3000 new union workers in Washington State while adding the new plant in South Carolina. What Boeing has done is to diversify their operations by expanding into a State with a more favorable business environment and reducing their risk of union-motivated business interruptions. Expanding into South Carolina is much better than expanding into South Korea, or Mexico, or China as Boeing could have done. As indicated in the referenced article, this latest attack on business and free markets is another very, very dangerous anti-business precedent being attempted by the unions with NLRB reinforcement to increase both union & government central control over free market business decisions in America. Is anybody in the Obama Administration really interested in economic growth and private-sector job creation in this country?

Not surprisingly, President Obama has been totally silent on this blatantly inappropriate and probably unlawful move by the unions to force private firms to get union approval for the location of business operations throughout our country. This action has now reached the second level in the process where the “Acting” General Counsel, Lafe Solomon, and the NLRB will rule as to the validity of the union’s demands. Given Obama’s bypassing of the Senate confirmation process, the IAMAWU’s complaint is expected to be approved by the “temporary” pro-union membership in the NLRB.  The process will then move into the US court system for appeals, probably all the way to the US Supreme Court. This process may take years to resolve and leave Boeing and other US business with even greater operational uncertainty than already exists under the Obama Administration policies. This is another government and union-imposed dagger in the heart of job creation, economic growth, and the free market decision-making process for American businesses. In the interim, what will be the on-going status of the new Boeing plant, US vs. foreign expansion decisions by other companies, and the domestic job growth they could provide?

If this bogus union complaint is allowed to proceed, businesses in the 22 states with “Right-to-Work” laws are in jeopardy of having union membership forced on them and American businesses throughout our country will be clearly encouraged to locate future business operations and jobs overseas. This is likely to be another inappropriate and unnecessary administration-created “slow-motion train wreck” for the stalled economy. How can President Obama, who now claims “jobs” are his most important priority, permit this disaster in our country?

This is just another example that Obama and his policies are increasingly turning our nation into a centrally controlled socialist welfare state. These policies are not the foundation of freedoms upon which our country was created and which made America great. It’s time to take back our country as soon as possible and return to individual liberties, free markets, economic growth, and limited government.

The Old Guy PhD


Yes, We CAN Grow the Economy & Create Jobs

June 10, 2011

G’Day!

Obama and the Democrats have tried and failed with virtually every centrally controlled socialist alternative to stimulate the economy and create jobs. The only jobs they have really created are in government. The so-called recovery is the weakest in decades and may be about to “double dip”. Big collectivist government solutions have failed miserably (see “Big Government IS Our Problem!”). Obama and the Democrats only answer to this failure has been to blame it all on Bush. They claim that without their $4 trillion dollar taxpayer & debt funded stimulus, nationalization of businesses, increased healthcare regulations and spending, increased financial regulations, and extreme monetary easing by the Federal Reserve, it could be worse. The only thing that worked has been TARP and that was enacted under President Bush! It is time for government to stop regulating, remove the uncertainties facing business, get out of the way, and let the free market and capitalism work. You do not create jobs by taking wealth from those that generate it, siphon off government administration and oversight, and redistribute less of it back into the economy.

Economic growth and job creation is about free markets, minimum regulations, incentives, and opportunities in the private sector. Government doesn’t create jobs; the private sector creates jobs. Government also doesn’t create opportunities but it can discourage or prevent them (think energy policy) and it can and does distort the market through politically motivated subsidies or tax deductions for selected industries. If taxation and regulations are minimized to the level necessary to support the essential role of government as defined in our Constitution, business will take advantage of whatever opportunities are available in the marketplace and the economy will grow. Unfortunately, the Obama administration and the Democrats in Congress do not understand this. They apparently believe that a few “elites” (themselves) in government are smarter than the millions of consumers and business managers throughout the global economy. They have imposed on American business a climate of increasing regulatory restrictions, increasing healthcare costs, high business taxes, and increasing uncertainty as to what they will do next. In this centrally controlled environment, it is no surprise that American businesses are not currently hiring or investing in our country. The regulations and costs just in Obamacare and the Dodd-Frank Financial Regulations Act are particularly harmful and businesses are wisely waiting to see what the government will force on them next.

So what needs to be done to create jobs and get our economy back on track? At least six actions could and should to be taken: 1) Stop/Minimize non-essential regulations, 2) Have a business-friendly government, 3) Reduce tax rates, especially on business, through tax reform, 4) Enact an energy policy that encourages rather than discourages development of domestic sources of traditional energy, 5) Fix the fiscal and debt crises by cutting government spending, revising entitlements, and increasing tax revenues through tax reform, 6) Pass the three pending Free Trade bills and expand them to include other trading partners.

First, a moratorium on new regulations should be declared and all regulations associated with Obamacare and Dodd-Frank (especially the Consumer Protection Agency) halted until after the next election in 2012. The uncertainty overhang from these two bills alone is stifling hiring and investment by business. Ultimately, all regulations, both existing and new, should have a “sunset clause” that requires our government to formally reaffirm their need at pre-set intervals, perhaps every ten years. This would insure that outdated or unnecessary laws do not become permanent.

Second, President Obama needs to realize that his collectivist socialist policies don’t work and become truly business-friendly. It is no secret that the current administration is pro-union, pro-environmentalist, and anti-business as evidenced by numerous actions by himself and the Administration’s Departments and Agencies. The pro-union/anti-Constitution actions by the NLRB against Boeing in South Carolina (see “Attack on American Business by Obama “packed” NLRB!”) and the many actions of environmentalists against any form of energy development (drilling in the Gulf of Mexico, Shell Oil off the coast of Alaska (see “Obama Administration Attacks American Business Again!”) are not conducive to economic growth and job creation. This week the issue of an energy pipeline from Canada to Texas has also come under attack by environmentalists. These and other obviously pro-union and environmentally biased activities against businesses (and some States) should be halted and free markets given an opportunity to function.

Third, tax reform is essential to both economic growth and reduction in the deficit (see “Fiscal & Debt Crises – Tax Reform essential!”). As the referenced article indicates, there are several excellent proposals available and Republican presidential candidate, Tim Pawlenty, just added another this week. All are pro-growth and pro-job creation and all will work by providing incentives for private sector investment IN THIS COUNTRY, not abroad. Naturally, the Democrats, who believe in centralist government solutions and not in free markets, are generally opposed to all of them. Perhaps the easiest, most immediate, and most beneficial tax reform is to reduce (or eliminate) corporate tax rates to a level equal to or less than the major nations with whom we compete and simultaneously eliminate the politically motivated subsidies and deductions that distort the market. Currently US corporate taxes at 35% are highest in the developed world and actually represent double taxation on income, first at corporate level and again at personal level, when distributed as dividends. Additionally, the high US corporate tax rates discourage US based international companies from repatriating foreign profits back into the US because, if returned, they are taxed at the higher US tax rate. Our current tax policy encourages investment abroad and discourages repatriation of profits back into America. This is a job killer, not a job creator. Is our government crazy?

Fourth, enact a domestic energy policy that encourages rather than attacks development of domestic sources for traditional energy. This will create thousands of good jobs in our economy and reduce our dependence on foreign energy supply. For far too long we have allowed the environmentalists to dictate policy and stagnate domestic energy growth. Every rational person knows America will be dependent on fossil fuels for decades. Yes, development of alternative energy forms and technology is important but there is no chance “green energy” is going to be a replacement for traditional energy sources, including nuclear power, any time soon. It is madness to exclude active development of domestic fossil fuel sources and nuclear power from our alternatives just to satisfy a few environmentalists with unproven science and questionable computer projections. If “green energy” was a viable economic solution, we would not need a policy or subsidies to support it. Also, independent of the longer-term cost benefits from domestic production, the extremely high and increasing risk of supply from the foreign sources is a very dangerous national security concern. The Middle East is in turmoil and no one knows how it will turn out. Without domestic alternatives, American could find itself with an energy disaster, which could seriously endanger our economy. We must actively develop domestic energy to create jobs in America, sustain our economy, and reduce our global supply risk.

Fifth, resolve our short and long term deficit and debt crises. We must get government spending and the dual debt and deficit crises under control (see “Bowles & Simpson Have it Right!”, “Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!”, “Is Obama Really Serious about Debt Reduction?”). Our Government is too big, too oppressive, and exercises too much control over the American people and business. The current policies are sucking money from business and taxpayers, adding more public sector union layers of government control, stifling business growth, and reducing America’s ability to grow and prosper. As stated above, in a free market economy with protection for the freedom of individuals and businesses, the private sector creates jobs. Since his election, Obama has expanded the size and scope of government control far beyond the level any freedom-minded citizen would have imagined possible. Simultaneously, Obama has also increased our federal deficit by $4 trillion and increased our national Debt by approximately 40% to $14.3 trillion. Relative to GDP the size of government has increased from approximately 20% of GDP to over 25.5% of GDP, a 5% increase in the size of government relative to our economy in less than three years. Without correction, our deficit next year is expected to be another $1.6 trillion and in ten years our national debt will grow to a staggering $22 trillion! Does anyone think this makes sense? My article last week, “Is Our Government Broken? – Redux!”, provides more information on this critical issue.

Sixth, pass the Free Trade Agreements for South Korea, Columbia, and Panama. These proposals go back to the Bush Administration and should be easy to pass. I believe nearly everyone including the President and many Democrats support them. As usual, politics is holding them up. Free trade works and provides value through additional products and services at lower costs to all American consumers. Only unions are opposed to free trade because, in the short term, it may reduce union jobs in non-competitive industries. Over 200 years ago, Adam Smith established the unchallenged principle that the wealth of a nation was based on the goods and services available to its citizens. Free trade allows this to work for the benefit of all consumers. It’s time for the unions to realize this and support what’s good for the nation over what’s good for the union.

Yes, we CAN solve our problems, if we have the political will to do so. This country was founded and prospered on the principles of individual freedom, free markets, sound fiscal and monetary policy, and limited government. Let’s get back to our foundations and demand that our elected representatives in government get to work.

The Old Guy PhD

 


Obama Administration Attacks American Business Again!

April 29, 2011

G’Day!

In just the last few days, the Obama Administration has directly or indirectly initiated four (see below) separate anti-business actions against American corporations, which interfere with our national economic growth and prosperity. These actions are similar to strong-arm tactics initially used by authoritarian regimes to increase central government control and to decrease individual and economic freedoms. As I said in Tuesday’s OpEd, “Attack on American Business by Obama “packed” NLRB!”, this is a very, very dangerous precedent. The policies of President Obama do not represent the American free market, limited government culture I know and admire. Specifically, the actions taken in the last week are:

1) The National Labor Relations Board (NLRB) has agreed with a union complaint against Boeing and South Carolina to prevent Boeing from opening the nearly completed expansion plant in South Carolina for the 787 Dreamliner.

2) The Environmental Protection Agency (EPA) under Lisa Jackson has stopped a Department of the Interior’s previously approved Shell Oil request to drill and develop a 27 billion barrel oil reserve in the Arctic Ocean off Alaska.

3) The Health and Human Services Department (HHS) under Kathleen Sebelius has demanded the firing of the CEO of Forest Labs, a privately owned firm, under the coercive threat of refusing to do government business with the firm, if the CEO is not replaced.

4) The NLRB (again) is suing Arizona and South Dakota to invalidate a law requiring “secret ballots” for union recognition in those States. Two (2) other States have also passed similar laws. (How silly of me, I thought secret ballots were a fundamental part of our democratic freedoms.)

All of these actions represent intimidation or possibly even extortion by these government departments, agencies, and boards to bully privately owned businesses and even States of the Union to conform to the wishes of the current Administration. This is an unprecedented use of governmental administrative power in peacetime and is not in keeping with the freedoms we have enjoyed in this country for over two hundred (200) years. If this were happening in another country, we might call it “creeping fascism”. I sincerely hope this is not Obama’s intent.

Equally disturbing is the trend by the Obama Administration to bypass Congress and increasingly use administrative force, not legislation, to control and implement the Administration’s agenda and greater centralization of Presidential power. Evident in the actions above is promoting unions over business, environment over energy development, and intimidation of private businesses into conforming to healthcare and other administrative objectives. This centralization and probable misuse of administrative power is not good for our democracy or our nation.

The EPA’s frivolous and damaging action against Shell Oil is worthy of additional comment because of the importance of energy in our economy. This is another questionable environmental complaint by the EPA that forces Shell to abort its approved exploration and development of domestic oil resources in the Arctic Ocean off Alaska. The court ruling on the EPA claim is that the air quality of the remote village of Kaktovik, with less than 250 people and 70 miles away from the drilling site, will be “close to” the air quality standard (not above) based on the greenhouse gas emissions from an icebreaker servicing the site. Also claimed is the site is “too close” to ANWR (but not inside it) and wildlife will be endangered.

This action by the EPA comes at a time when higher domestic oil production is critical to reducing our dependence on vitally necessary oil from questionable foreign sources. The US currently consumes 18.8 million barrels of petroleum per day (approximately 6.8 billion/year) of which approximately 50% is imported. The proven US oil reserves are only 19.1 billion barrels. The Shell project in the Arctic Ocean was expected to add 27 billion barrels and 74 trillion cubic feet of natural gas of new US reserves, which would more than double the current level of US petroleum reserves! Shell has already invested almost $4 billion and over 5 years in the project, $2.2 billion for the leases alone.

This is another deliberate anti-business action by the Obama Administration, this time the EPA, and further stifles economic development, domestic oil production, American job creation, and encourages American businesses to move offshore. We do not need an authoritarian government that dictates to its people and its businesses what they can do, where they can do it, and how they can do it. If this policy is continued, it will restrict economic growth, innovation, job creation, and our personal liberties; AND it will further pressure our American enterprises to move to more business-friendly nations. I believe it was Thomas Jefferson who said, “That government is best which governs least.” This is good advice and should be remembered at the next election.

It’s time to take back our country and return to Constitutionally protected freedoms, free markets, economic growth, and limited government. Let’s get to work!

The Old Guy PhD

 


Attack on American Business by Obama “packed” NLRB!

April 26, 2011

G’Day!

The latest union-driven government-supported attack on business and free markets is against Boeing and South Carolina. This is another very, very dangerous anti-business precedent being attempted by the unions with National Labor Relations Board (NLRB) reinforcement, which would increase both union & government central control over free market business decisions.

After 4 crippling union strikes in Washington State in the last 2 decades (with 2 nearly back-to-back) and the most recent in 2008 costing Boeing an estimated loss of over $5 billion in revenue, Boeing decided to build an expansion plant for the 787 Dreamliner in South Carolina. Twenty-two (22) States, including South Carolina, are “Right to Work States” which don’t require (or prevent) hiring union workers. The Boeing plant in South Carolina is nearly complete and approximately 1000 workers have already been hired with 1000s more to follow (many from the soon to be closed NASA/Kennedy Space Center). Interestingly the new Boeing plant, if it is allowed to open in South Carolina, will be 100% powered by a combination of renewable energies.

The International Association of Machinists & Aerospace Workers at Boeing in Washington State filed a complaint with the NLRB to prevent Boeing from completing the new plant in South Carolina with non-union workers (as permitted by law). The NLRB, with a majority of union-supporting members has agreed with the Washington State-based union (big surprise). Obama temporarily packed the NLRB during the March 2010 Congressional recess by filling 2 of the vacant positions with Craig Becker and Mark Pearce without Senate confirmation. Subsequently Pearce and a Republican nominee, Brian Hayes, were confirmed by voice vote in the Senate in June 2010 but Becker was not. Becker, union activist and former Associate General Counsel of the AFL-CIO & SEIU, remains a temporary voting board member until the end of 2011. This currently gives the NLRB a majority of members supporting union causes and biases their decisions in favor of labor and against American business. Please note, the Democrat-controlled Senate prevented former President Bush from filling the 3 vacant appointments to the NLRB in 2007-08.

This will likely turn into another expensive and delaying lawsuit which, if unions and the NLRB win, will force businesses to get union or government approval on where and how to locate and operate their business operations within the US. This would be another potential disaster for capitalism and freedom in our economy and further encourages American businesses to move offshore. At a minimum it is a threat to all expanding businesses and the twenty-two (22) States that have “Right to Work Laws”, which were enacted to encourage competitive business operations and free markets. Timing could not be worse as we are just coming out of a recession and need job growth. Boeing has already committed significant time and money to the plant, which could be lost, and improved global competitiveness is crucial to the future success of American business. Is anybody in the Obama Administration really interested in economic growth and private-sector job creation?

Obama and his policies are increasingly turning our nation into a centrally controlled socialist welfare state. These policies are not the foundation upon which our country was created and which made America great.

It’s time to take back our country as soon as possible and return to individual liberties, free markets, economic growth, and limited government.

The Old Guy PhD