Is Obama Letting the Economy Tank on Purpose?

So, I have been watching the economy collapse day after day.  One would almost think the press itself wants it to keep diving.  That's obviously not the case, as we see newspapers and television stations scrabbling for more cash.  Today, the Rocky Mountain News published its last paper.  

Listening to President Obama over the past few weeks, I too was wondering if he had a stake in all of this.  When he was running for office, he had a message of hope for Americans.  He was going to solve all of our problems.  He was going to bring a new day.  We would be strong again. Granted, he has only been in office for a little over a month, but the market has fallen even further since inauguration day.  Rather than listening to the hopeful messages we got accustomed to hearing during the campaign days, we heard an Obama who has been downright scary.  Words like catastrophe, worst ever, and never recover.  What?

Since the birth of our nation, there have been between 18 to 20 recessions, depending how you count them (and depending on wikipedia's sources).  That's a lot.  Every time, America has bounced back.   We are stronger today for it.  We have learned from past mistakes.  So how is this one going to be the end to end all?  It isn't.  We just aren't used to bad ones anymore.

So why has Obama been so negative.  Simple, he wanted to get the stimulus bill passed.  Is that so wrong?  It depends on what you think will stimulate the economy.  If you think tax cuts, which has gotten us out of recessions before, then it was a bad deal.  If you think more government spending (which technically did get us out of the Great Depression, but it was spending for a war, not the New Deal), then it was smart.  However, here we are, after all that negative rhetoric, and the Dow is hovering just above 7000 points and it keeps falling day after day.  Investors are terrified.  That's not good for the economy.   They are waiting for a leader to emerge.

Then came the nearly 4 trillion dollar budget announcement this week.  Now, I'm for deficit spending in a recession.  I think it does help, but it's important where you spend all that money.  This budget is laced with Democratic Party initiatives rather than concepts that will help American's get jobs.  Higher taxes on the "rich".  Universal health care reform.  Some of the policy ideas are probably good.  Some are probably bad.  But, what you don't do when you are in a recession and America is broke...is create a bigger deficit than you need.  You wait on your drastic  reforms, because America just can't pay for it right now.  Just like we should only use credit cards sparingly, so should the government when considering deficit spending.  Not the Democrats, though.

So, why is Obama pushing this now?  Dick Morris suggests he made the economy sound even worse than it is (if you can believe that), so that the Democrats could push through their liberal agenda.  It's plausible.  The stimulus bill passed.  The Democratic Party has been licking their chops since they took control of everything to shove through their policies.  To make up for old times.  Nancy Pelosi says the people demanded it!  Really?  I think many people voted for Obama and the Democrats, because they were tired of all the corrupt Republicans and W's way of running things, more than anything.  They were tired of deficit spending!  They were tired of Iraq!  

My point is, if Obama truly is catering to his party now, not the American people, and making the economy out to be even worse, to pass through Democratic Party agendas, then it's a sad day in America.   What we need is a hopeful President with tighter controls on spending, not excessive spending.  There will be plenty of time for the Democrats to push through their agenda.  I just hope that Dick Morris is wrong and Obama is living up to his campaign promises.  We shall see.

How to Stimulate the Economy

What is happening to the American Economy? Well, it’s really the global economy, but to simplify things…let’s just keep it American. First, people borrowed more money than they could afford to pay back with their income. They financed credit with more credit. This was accomplished through credit cards, car loans and mortgages. Second, the banks went along with it. Finally, the crap hit the fan when the debt came due. Demand for everything softened, because Americans finally had tapped all their credit and couldn’t pay for anything else. There became less demand for homes, so prices fell. Then people defaulted on their mortgages…we have heard this explained a thousand times on the news and we know the outcome. We are living it.

So how do we fix it? Well, there are two models: 1. The Government spends its way out of the mess by spending money it doesn’t have…by spending OUR money. They use OUR debt to finance public projects and employing more people to build the projects. 2. The private market spends its way out of the mess. This is accomplished by massive tax cuts…basically letting businesses and individuals keep more of the money they earn.

Fans of Option 1 believe that the private market got us here. That is partly true. People got greedy and either loaned money on risky investments, or spent more than they made. Both parties in Government turned a blind eye. But is doing the same thing (Government spending more than it brings in) going to solve the problem? Don’t two wrongs make a wrong? The reason the American economy is in a tail spin is very simple…no one is buying anything. People are scared so they have cut back on spending. In part, this is irreversible, because we spent more than we could in the past. So, no matter what happens, Americans will spend less, because there is less credit.

Well, if the problem is less spending then the solution needs to be getting Americans to spend more (since we are anywhere from 2/3rds to 3/4ths of the economy, depending on the economist). The theory is, if Government spends more, it creates more jobs allowing people to spend more, because they have their new government job. But, what if instead we gave everyone that currently had a job a lot more of your money back by cutting taxes? What if we cut business taxes drastically for a period of time then gradually increased them? Businesses would have a lot more money and so would consumers. Consumers would buy more, because they have so much excess money to spend. This creates more jobs, so businesses can keep up with demand. Businesses have more money to keep current employees, make investments, and hire new help. More people have jobs, so they can keep spending money. Say goodbye to the recession.

So what happens when the tax cuts are gone and taxes increase? Well it must be increased gradually and if done gradually over time, the consumers will keep spending, because they have jobs, and businesses will keep hiring and not firing because they have consumers. Remember, the Government’s spending plan ends too. Eventually they will spend all of their money building the roads and improving the schools. What happens then? Well the roads are built and the schools are fixed…so time for layoffs? Allowing Americans to spend their own money will increase demand faster than the Government can implement its programs and by giving everyone 13 more dollars a week. Tax cuts are more drastic and immediate. People see the effects quicker and react quicker. Do our roads need to be fixed? Of course, but that can be dealt with at another time. Right now, we need to simulate the economy and fast. The Democrats can deal with education, infrastructure, and their other pet projects at a more appropriate time.

The Evil Oil Companies

Wealth redistribution is almost a certainty when Obama becomes president. Today his campaign said this lovely quote: “Obama simply asks that big oil companies contribute a reasonable share of the windfall profits they receive from high oil prices over the next five years to pay for emergency assistance for families right now,” the campaign says. http://www.politico.com/news/stories/0808/12237.html Simply asks that they pay their reasonable share? What reasonable share do they owe anyone? What is profits they receive? Don't they EARN their profits...I don't think anyone is allocating money to them. In America, this is a country where you can have nothing and make a boatload. You make a product, you sell it, you make money. If people want it, they buy it...if they don't want it, they won't buy it and you go broke. Where in the constitution does it say that you also have to give a portion of your profits to families? Where does it say you don't earn your money?

Obama and CNN love attacking the Oil Companies and portraying them as Evil. First, the oil companies do not force anyone to buy their products. It's our own fault, and our government's fault, that we have become so addicted to foreign oil. If you don't like what the oil companies are doing...move closer to your job, bike places, walk places, buy a more fuel efficient car. Second, while the oil companies profits are a lot...so are their expenses, which is why their profit margins are not obscene. If you want to tax a company for obscene profits...you need to go after Microsoft. But, you don't see Democrats going after them.

Obama's idea of windfall taxes on oil companies are horrible for two main reasons: 1. it's wealth redistribution, which is not what America stands for and is a step towards socialism or communism and 2. they aren't making windfall profits. Unfortunately most Americans are too lazy and don't understand the difference between a profit and profit margin and they don't want to take the time to go back to school to make more money. Instead they want to steal it from the "rich". How would middle class Americans like it if the rich came to their home, said you have been allocated to much money or "received" too much money, and we are going to take more for us rich folk? It would suck, huh? Well, eventually this idea will be stealing from the upper middle class, and then the middle class and then the poor when companies start laying off more people because of their high taxes. Then companies will just move. So...those rich folk will take the money they allocate, or pay in wages, and give it to people who do not live in a country with a government that loves to TAX TAX TAX. Then what? Who are we going to tax? Cows?

I understand that wealthier people should want to provide more, since they have more to give. But, everyone must be taxed at a point to where there are no diminishing returns. If you start raising taxes, jobs will leave and companies will leave. I do not know if Obama is saying this just to get elected or truly believes that people do not own their own money, but the government does. And, if the government doesn't like how you spend it, it will take it from you. WHY DOESN'T THIS SCARE THE CRAP OUT OF PEOPLE?

I was a huge Obama fan earlier in the year, until the real Obama showed up and has shown us his extremely liberal side. I want politicians who are moderates, that do not make policy based on the extremes of either party. Socialism will not work in America and it is not the American way. The more Obama talks, the more Americans are brain washed and the more I regret supporting him in the Democratic primary.

What is Wrong with Americans?

First, I would like to ask...what is wrong/scary about this picture? 1. That it looks like one of those crazy church services 2. The crowd's dazed-arm stretched out- look is very similar to another country's population in the 1930s 3. That this is a Barack Obama rally not a rock concert.

George W. Bush has done such a bad job at being president that Americans will turn to almost anything and anyone that is not George W. Bush. In fact, I heard that if Sanjaya from American Idol was over 35, he may be a lock for the next President. I will admit that a few months ago, I got caught up in this craze. I was an American that loved to hear the word "CHANGE". I didn't care what the change was, things just needed to CHANGE. I feel that most American, besides the 22% that still find something great about Bush, want a very different leader in the White House. But, there are many types of DIFFERENT and not all mean a better change. I finally decided to read about the candidates and now firmly believe one stands above the other because of his experience and stance on very important issues.

I will give Obama the Wow factor. He has been able to get people to fall in love with him. At very least, it has pumped some new blood into American politics not scene in a long time. But, there is a lot of bad coming with this Obama Wave. First, most people have no idea what he really stands for, except it's different from Bush. Well, as bad as Bush has been as a national leader, not all of his policies were bad.

Although the Media, who has fallen under the spell, loves to paint McCain as a war lover...and the comments at the end of many online news stories have jaded Americans calling him McWar...McCain is not pro war. McCain, unlike most Americans, fought in a war...McCain was tortured in war...McCain actually KNOWS how the military works, and knows what its like to lose friends and to be in some of the most horrible conditions. I would think McCain would think twice before sending his son to war. Obama does not have this experience.

My point, though is that many Americans look past this fact and many important others. Many do because they do not understand that you cannot just walk away from something and leave it worse off. Okay, we broke Iraq with the war, but I was taught if you break something you fix it. You don't just walk away. There are ways to fix it without losing a lot of life, either. The current surge has proven this. Of course, our government has been teaching us for years that Americans do not need individual responsibility. I have nothing against people that support Obama because they think and believe that leaving Iraq in a worse position is better, that having higher taxes is better, that the government needs to be our mom and dad, that the government needs to be involved in every aspect of our life. I disagree 100%, but if you really believe this then you should vote for Obama. He is YOUR man.

Many people forget or don't know that McCain is a uniter as well. Sure, he doesn't have the great speaking ability, he isn't as hip...but for decades he has been bucking his own party and making compromises for the good of the country. Look at Obama's voting record, that evidence is not there. McCain has some tough language for people that don't like to take personal responsibility...he thinks people need to be more accountable, along with businesses, but he isn't about leaving people out to dry either.

People need to understand about how the economy works, understand that higher taxes mean less money in your pockets to buy gas, less jobs for you to work, and not always more money in the government coffers. People need to understand the difference between record profits and profit margins. People need to understand you can cut plenty of government spending before you need to raise taxes to balance the budget. People need to understand that getting off oil isn't a one step solution, but takes many things happening at the same time to keep prices stable NOW and break away from oil altogether in the future. People need to understand that because the surge worked in Iraq now more troops can start coming home...but that setting an arbitrary date is stupid for so many reasons. People need to understand that the President has almost no say in what happens to the economy and has little power to affect the economy, but has enormous power over the military and upholding our laws...do you want a novice or an expert?

I really hope that people vote for the next President not based on the media, but go to their websites and read their stances. Americans need to first understand how our government works, then understand simple economics and then need to read about the candidates. After that, place your vote based on the person you agree with the most and you think can best lead this country. If you take those steps, I don't care who you vote for, because at least you are voting based on what you truly believe and not on misinformation or hysteria. Even if I disagree with your belief.

Money Talks Still In Politics

Yesterday Barack Obama said that he was no longer going to seek public money for the campaign. http://www.cnn.com/2008/POLITICS/06/19/obama.public.financing/index.html Awesome, right? He won't take the public's money. Or, is it a good thing? Didn't he make a promise to do so a few months ago? Now, he has given this a great spin by saying the money he is seeking is from private individuals who give $5, $10, $25 dollars and he needs to raise as much as he can from them to beat the evil Republicans. Public money just is not enough to beat back the Republican machine, he needs as much as possible to CHANGE America. Now, if 1,000,000 people gave $25, how much would that be? Right $3,000 er...I mean $25,000,000. Obama though has raised 272 million dollars since January. NEWS FLASH: All of this money isn't coming from people giving $25!!!

I am going to throw Obama a bone here and agree that sometimes you have to work within "the system" to change the system. In fact, I think it's mandatory. That is one reason I think it is silly when politicians say they aren't going to work with the evil lobbyist, and then have to fire their entire campaign staff the next day. It's just stupid, but I will save the lobbying debate for another day. Obama is right that sometimes you have to perform the same old tricks to win in order to make the changes desired. However, where he went wrong is he made a PROMISE to only use public money by working with his Republican counterpart to form an agreement, so neither candidate would be at a disadvantage. If McCain said no, Obama was within his promise to NOT accept public money and get it from supporters, instead. This would ensure that private interests did not affect the candidates if both candidates accepted the agreement. Very noble of Obama. Instead, though, Obama did not seek an agreement with McCain (who probably wouldn't mind public fundraising right now, since the Republicans are having trouble raising money) and went right past GO to collect as much money as he could from private individuals and companies (yes folks, let's not be naive, companies too).

Obama's entire message is about CHANGE. Many don't really know what this change is, but they know they want it. I probably can describe it most simply as people are tired of how politics works in this country. Where politicians care more about gamesmanship and building up power within a political party, than actually making some tough decisions that will piss off your supporters and your enemies in order to fix the country. Obama has showed he does not represent this change. I can hardly blame him, since almost no politician actually represents this type of change. It's nearly impossible, especially since you have to work within the system first to then change it later (and piss off many, ruining chances for reelection). But, Obama goes around preaching that he is better than all the other politicians, that he really is this savior, that he runs a clean campaign.

Unfortunately, all I have noticed in this campaign by both parties is politics as usual. The same tricks, the same distorting of the truth, the same backpedaling when a promise made six months ago no longer seems attractive...or while it's the right thing to do....it may cost you the election. This is the point when every politician starts to see the gold at the end of the rainbow. They imagine themselves in the White House, moving in the new furniture, calling the shots. They imagine all the good and change they will do. Then they say, no matter what the cost, do whatever it takes to win. Who can blame them? I just don't like when a politician comes out and won't admit what he or she is really doing...or worse, try to claim they are DIFFERENT, grabs the hearts of so many in the country, and then uses the same bag of political tricks.

If Obama is going to say he is about CHANGE and makes promises to do something...I expect him to keep them. If he turns the other way because it's EASIER or it gives him a better chance to WIN...then he is like the rest of them...and his message is one big LIE. Surprise!

(Editor's note: I will attack McCain one of these days...but Obama is just giving me too much material)

401k.gov

So, Obama now wants the Federal Government to start giving money to low income and middle class worker's 401ks http://money.cnn.com/2008/06/16/news/economy/retirement_savings/index.htm?cnn=yes. Sounds wonderful, right? The Government should help out the people who cannot afford this easily on their own. GOOOO OBAMA! But wait...where does Congress get all this fun play money to put into 401ks? From YOU! This plan of giving 500 hundred dollars to people making under 75k would cost the government nearly 20 billion dollars a year. I don't know about you, but Obama is finding a lot of ways to spend more federal dollars, more of your tax dollars...when we already had a HUGE deficit and he says he will balance the budget. How can this happen? HUGE HUGE HUGE tax increase!!

In case you are keeping score, Obama wants to have a excessive profits tax on Oil Companies. Of course, their profit margins are not huge at all, they just have a lot of revenue and a lot of costs, but Obama and his tax police will tax them more anyways. Then, Obama wants to federalize health care. We all know how smoothly things go once federalized (see TSA). Now, Obama wants to take more money out of your paycheck and redistribute it to the less wealthy. Some of you may be in the category that would get this 500 FREE dollars...but it comes at a price. Taxes will go up, meaning it's not truly 500 dollars you are getting for FREE. You are being forced to pay for it. Wouldn't you rather the federal government, who has a long history of mismanaging money, no matter what party controls Congress or the White House, give back more of those dollars to state and local government....oh and to you? Do you really need Uncle Sam stealing money from other people (including you) to redistribute the wealth. It sounds great until you are the person Sammy boy is beating over the head to take your money.

While Obama has good intentions, he is showing how truly liberal he is, now. What a disappointment. I really liked him in the beginning, but maybe Hillary was right (I can't believe I just said that). And, maybe Hillary should have been the democratic candidate (I just threw up a little in my mouth). Billary at least did not drastically increase taxes and last time those two were in the White House, they ran a very moderate administration. Obama will have us all paying through the ears in taxes and then let the mismanaged Feds redistribute the wealth when they get around to it.

Americans do have a problem saving. They learn from Big Brother himself when it comes to spending money and saving. We need to figure out ways to get people to save more, or else there will be a huge crisis when retirement comes, if it ever comes for Generation X, Y, Z or whatever they are all called now. One idea is to have automatic enrollment into the company's 401k plan, forcing people to save. If you think that is too Big Brother, don't worry...most of these ideas come with an opt out escape pod, so no one is actually forced to do anything. But, when the money is taken out at the same time as taxes, and you don't get used to having it...more people save it.

While Americans may need some help saving, they surely do not need Obama and his government tax police stealing money from Americans to give it to people he deems as more deserving. I spent a lot of money going to college to make what I do today. I don't appreciate Obama saying I don't deserve every penny I earn, or that Tom, who dropped out of high school and has never held a real job, is more deserving of my money. Whether we are blue collar or white collar, we all work hard every day. We deserve to keep the money we earn. Imagine if a president were elected that said, I am going to tax the middle class heavily, so I can cut taxes for the rich and give them more of the middle class worker's money. People would revolt and overthrow the government. Well, why should we be able to do the same to "wealthy" people? Didn't they earn the money the same as those in the middle class? Isn't it still their money? Every day I become more disappointed with Obama. I just hope people really research what he is saying and what it will do to this country.

Obama = Socialism?

So, whenever I hear Obama talk, I want to stand up and cheer and say bring back the 1960s and Camelot. I BELIEVE he is going to change things. How is he going to change them...I don't know, but it sounds good. I guess less fighting? I think to myself, finally a President who sounds intelligent when he talks. Then I slap myself and listen to what he is actually saying. I quickly realize that he is brainwashing me and so many other Americans into accepting something that is wrong, untrue, or simply will not work in America. I look around and see everyone buying into it. I instantly feel like I'm in some Stanley Kubrick movie and cannot get out.

Today, Obama told a crowd in North Carolina that when he is elected, he would tax the oil company's for their windfall profits. http://www.reuters.com/article/topNews/idUSWAT00963020080609?feedType=RSS&feedName=topNews&rpc=22&sp=true The crowd cheered. Yeah, that sounds good in theory, right? They make so much, and gas is so expensive, we should blame the oil companies for stealing money from our pockets. Maybe the oil companies should have invested more on oil research over the years. Or, maybe oil was so cheap the past fifteen or twenty years, that they didn't have the profits to invest...until now. Unfortunately, investing takes time. While it hurts being addicted to oil like crack, taxing windfall profits will not cure the addiction, like taxing heroin will not suddenly cure drug addicts. Instead you will only hand money over to the government, to waste in some pork barrel earmark for a bridge to nowhere.

The only way things will get better with oil in the LONG TERM, is by developing alternatives. This can ONLY happen when oil is expensive, forcing people to change habits and creating potential profits for other businesses to develop anything cheaper than oil to run a car. It will hurt for a while, possibly a long while, but eventually things will change. To help relieve the pain, Americans should buy smaller more fuel efficient cars, move closer to where they work, take fewer trips, and walk/ride bikes more (also solving the obesity problem). TAXING people who are legally making money does nothing but give politicians in Washington more money to waste. It will not create lower gas prices, but instead raise them. HOW, you might ask? Because then the oil companies have LESS profits to reinvest. LESS profits to find more oil. LESS profits to develop alternative fuels. Instead they will KEEP their profits up to the "windfall" tax and tell the American Government to go f-off and good luck finding the solutions to high gas prices. The oil TAX will not go to developing alternative fuels just like social security taxes don't go to social security.

It always sounds great when someone running for office says...I am going to give you more money for free, increase services for free, free lap dances for single men, free cars, free education, free free free. NOTHING is free. It comes at someones expense. While its easy to say, TAX THE RICH and demonize the rich...ever sit back and ask is that fair? What have rich people ever done to you, except give you a job and your paychecks? If you go out and work hard to make a living, is it fair for someone else to come and say "I make less than you doing my job, so you need to give me some of your money that you worked hard for"? Most people that are RICH worked very hard to get to that point. The men and women who work for oil companies, that work in the oil industry work very hard, whether they are blue collar or white collar. The men and women who invest in these companies, who risk their own hard earned money, many of it in retirement 401ks, so we can have gas to fill up or tanks...they deserve a return on their investment...a return on their risk. They deserve to retire. They DO NOT deserve Obama coming in, stealing their money and giving it to BIG Government.

Obama's slogans always involve change. There is no real change in his ideas, though. He just wants to change the presidency from a so called "conservative" President to a "liberal" President. Well, I believe in hard work and getting paid for doing the hard work...not government hand outs and not government stealing from my own pockets. It appears that Obama's talk of change are lies at worst, misleading at best. His "changes" will just make Congress and politics more partisan. Let's hope he finds his way to the center fast! Otherwise, this election will be easy.