It was actually a slow week for Obama. Maybe he is still recovering from his trip to the Middle East and Europe. Speaking of Europe, the center-right party won a resounding victory by claiming nearly 40% of the European Parliament seats. The center-right party won a majority of the seats in nearly 70% of the European Union countries. The Socialist Party only won in Denmark, Sweden, Greece, and Malta. A hand full of other parties won in the Netherlands, Estonia, Latvia, United Kingdom, and the Czech Republic. This may not have anything to with Obama per se, but it is a sign that our socialist friends in Europe may be changing their tune after enduring a tough recession and ever increasing taxes and subsidies. It is interesting to note that the unemployment rate in some of these European socialistic countries is approaching 20%. If Europeans have had enough of the social agenda, it is a sign that Americans may also follow suit. Maybe that is why our “anointed one” has seen his job approval ratings drop below 60% for the first time.
Obama is moving to get more stimulus funds into the economy faster as unemployment hit 9.4%. He projects they will save or create 600 thousand jobs this summer. First, how is this number measured, the most transparent administration in history has not shown how they calculate this. Secondly, I never understood passing a stimulus plan only for it to take several years before most of the money hits the economy to alleviate the recession. Possibly the reason is because they know if they flood the economy with too much money at once it will lead to hyperinflation. Besides, it never makes much sense to spend money we do not have.
Obama proposes a pay-as-you-go mentality for Congress. In other words, for every dollar Congress spends, a dollar must be saved by tax increases or budget cuts in other areas. This is the philosophy that Congress used to balance the budget in the 90s. However, Congress in the 90s did not have to propose tax increases and budget cuts for trillions in new liberal spending. Yes, this policy can work to ensure we do not go further in debt, but there will have to be immediate tax increases (during a recession) to pay for Obama’s liberal agenda including a trillion in new spending for health care. The benefit is we do not go further in debt; the downside is that Americans will have to face heavy tax increases immediately. Either way it is not going to be good: larger deficit or higher taxes. This is another no win situation for the American people. Obama does not get that the problem is ALL of HIS SPENDING POLICIES!
I am hearing rumors that Massachusetts Senator, Barney Frank, is writing a bill that will make the Federal Government (the taxpayers) liable for the debt of each individual state. What better way for the federal government to own each individual state and regulate them to comply with their lofty agenda. This will only further reduce the power of the individual states and their ability to govern effectively. I am positive Obama will like this idea; after all he has no qualms about meddling in the private sector and paralyzing them with regulations. Speaking of corporate regulations; Obama is moving to enforce stricter executive pay guidelines on those financial giants that received bailout money as he has appointed a Pay Czar.
The latest on the proposed Cap and Trade (Climate Change) bill, or better known as the Global Warming Tax, is it will provide rebates to the poor. Since the Global Warming Tax will not only affect industries that emit carbon byproducts, it will cause the energy bills of every American family to increase substantially. Hence, the government will take a large part of the money it collects from carbon polluters that have to purchase permits and give it to the poor. Talk about another convoluted “spreading the wealth” plan. In essence, energy producers are going to be taxed and they in turn will have to increase their premiums to stay afloat while the government recycles the money back to the people to pay for their outrageous energy bills. Make sense? Of course it does! Everyone wins except for of course those that do not qualify for rebates. Who cares if our evil large corporations and small businesses bear the brunt of this cost, after all they only employ the American people.
My Book: Is America Dying? (Barnes and Noble, Amazon.com)
My Blog: http://patrickbohan.blogtownhall.com/ (The Theory of Mediocrity)