Among the issues most commonly discussed are individuality, the rights of the individual, the limits of legitimate government, morality, history, economics, government policy, science, business, education, health care, energy, and man-made global warming evaluations. My posts are aimed at thinking, intelligent individuals, whose comments are very welcome.

"No matter how vast your knowledge or how modest, it is your own mind that has to acquire it." Ayn Rand

02 November 2010

Obama White House: 8% Unemployment Until 2013!

Obama's economic advisers believe the U.S. unemployment rate will continue to be above 8% until 2013.  We have already had 17 months of unemployment above 9%.  We have had 20 months of underemployment above 15%.  Now Obama and his team are saying we will have another 32 months or so of unemployment above 8%!

Obama and the Democrats have had a series of economic advisers who have been unable to prescribe any actions to take on the economy which have been beneficial.  Instead of the obvious beneficial recognition that taxes on businesses and the wealthy are too high, Obama and team have insisted on one tax increase after another.  Instead of recognizing that business needs the freedom to produce and to provide services, Obama, with his clueless socialist philosophy, has insisted that businessmen and women are all evil, conniving slime balls, who must be evermore intrusively regulated by government bureaucrats.  Since the phenomenal growth of the government's spending from 2000 to 2008 with an increase of 66.7%, was not enough, Obama stole huge measures of wealth from the private sector with huge additional spending and with huge mandates. The mandates require businesses to spend much more money and time to provide what Obama regards as social services, but does not want to add to the federal budget and deficit.

If you wonder how the huge increases in actual federal spending are a drain on the private sector, it is because that spending will be paid for by the private sector through a combination of:
  • Higher future taxes
  • The loss of present and future property values on buildings, equipment, and facilities
  • The unavailability of money for present and future investment in new plant, equipment, facilities, and training
  • Higher interest rates on borrowed money due to inflation and increased business risk brought on by growing government, which is always a threat
  • The lower value of the dollar, making resources and supplies from abroad more expensive
  • The lower growth of the economy due to money for political purposes doing nothing to increase the productivity of the American worker and businessman
  • The mischief of using some of the money to subsidize very uneconomic products such as ethanol, solar power, wind energy generation, and mandated health insurance as a means to dump the costs of these lunacies upon the private sector
  • Huge increases in the time to provide government with much more paperwork and to keep many more records for such things as ObamaCare, energy use, CO2 generation, financial activities, and recording and filing 1099 Forms for every person or company more than $600 was spent with
As a businessman trying to rationally plan your future investments, the blizzard of federal spending, mandates, regulations, paperwork, and taxes is mind-numbing.  You stop dead in your tracks and say "I do not understand what is going on.  Clearly Washington is trying to kill my business.  I have to stop making decisions until I can figure Washington out.  But I do not have enough copious free time to do that.  Is that even possible?  What they are doing is so clearly lunacy.  I will just hold as tight as I can until this mess is somehow straightened out.  If it is not, then it is time to retire."

 Meanwhile, one thing you will definitely not do is hire anyone.  So, remembering that the one thing we can count on from the Democrat socialists is that they have no understanding of the economy and even less of business, especially small businesses, who is crazy enough to believe that unemployment will come down to 8% in another 32 months under their management of a very meddlesome and ubiquitous government.  So long as a clueless government guided by the theories of Marx, Alinsky, Mao, Castro, Chavez, and Mussolini has its hands in everyone's every pocket and its fingers in everyone's personal apertures, the unemployment rate will never again be less than 8%.

Unless the government pretends to give everyone a job as the Union of Soviet Socialist Republics used to do.  The good old USSR used to have three to six people watch one person work, but all were said to be employed.  Look where that got them.  That is not the fate Americans want.  The majority understand economics and the business of business better than do Obama and his economic advisers from academia.  They are about to overthrow his regime of childish and destructive control-freak meddlers into the workings of the very complex and very adult private sector of America.  The Socialist Party is going to lose 69 seats in the House of Representatives, giving the Republicans a substantial majority in the House and mercifully ending the Pelosi "You have to pass the bill to know what is in it" regime there.  The Republicans will come to have 49 or 50 Senate seats and look to end up with 33 or 34 governorships just in time for the decadal redistricting of House seats.

The Republicans, even given more resolve by Tea Party members, may not be able to undo all the ill-gotten gains of the socialists with only control of the House, but they can and should defund all of the mischief of that socialist program.  Will they have the guts and will the American People prove to be the Winter Soldiers who will stand with then to fight Obama?  It will come to that, because Obama is a committed socialist and his promise to fight viciously with fists and elbows is the only promise we will ever be able to count on from him.

Of course we will always remember these whoppers:
  • I will cure disease throughout the world, stop the warming and stop the rise of the oceans.
  • I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States.
  • I will not increase your taxes unless you make more than $250,000 a year.
  • If you like your health insurance, you can keep it.
  • The health care reform bill will decrease the cost of your insurance premiums.
  • The Stimulus Bill will keep unemployment below 8%.
  • There are no earmarks in the $787 billion Stimulus Bill.
  • The health care package will pay for itself.
  • The ObamaCare fee is not a new tax.
  • We have run out of places in the U.S. to drill for oil.
  • I will not rest until the BP Oil Spill stops.
  • The Finance Bill will provide transparency and end the risks and abuses that nearly collapsed the financial system.
  • The health care bill will not increase the deficit by one dime.
We can count on him adding greatly to the list over the remaining two sad years of his occupancy of the White House.  The man is a joke and a tragedy.

If only the first black American President had been Prof. Walter E. Williams and his wife had retracted her promise to assassinate him if he ran for the presidency!  With his good understanding of economics and the limits of legitimate government, what a President he would have been.  With advice from his friends Dr. Thomas Sowell and Supreme Court Justice Clarence Thomas, that triumvirate would have saved America much misery and would have demonstrated why you do not write anyone off on the basis of identity politics.

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