Saturday, August 28, 2010

The Republican's Problem With The Bush Tax Cuts

The so called Bush Tax Cuts will expire at the end of the year and the Democratic controlled congress should let them expire with the exception of those earning under $250,000.00 a year. As usual, the Republicans are using the issue as a wedge to divide the people by saying it will be a tax increase for the wealthy if let to expire.

Former President Clinton would have a field day with the Republicans on this issue and would point out that the legislation was passed by the Republican controlled congress who put a sunset date of December 31, 2010, which means the tax rates would revert back to the previous level. If that is a tax increase it is the Republicans tax increase, not the Democrats.

Everything the Bush and Republican controlled congress did turned out to be a financial disaster for the middle class, the economy, for the creation of new jobs and was catastrophic in creating record federal deficits and debt for the country for eight straight years. Every major expenditure of the Bush administration was unfunded, including the prescription drug benefit that cost the government $1.2 trillion over 10 years and is still being paid for by the people and the Obama administration. That benefit also gave the people the donut hole that Obama's health care legislation closes.

Trickle down economics during the Bush years gave the country and its people the worst economy and loss of jobs since the great depression. Trickle down economics and unfunded expenses are trade marks of the conservative Republican ideology to bankrupt the federal government and deny the government needed revenue to finance programs that really matter and make a difference for the country and its people. That says it all.

Friday, August 20, 2010

The Political Wisdom of President Clinton

Although the former President has been out of office almost 10 years, President Obama and the democratic party are facing the same conservative republican rhetoric that Clinton faced. Obama and the party are not dealing with it as well as Clinton did and infact Clinton was so effective against conservatives they had to resort to impeachment.

Clinton was able to relate to the people how conservatives could only win elections by dividing the country using bogus wedge issues. The people understood when Clinton said the conservatives could not debate the issues because they had no record of accomplishments. Almost 10 years later the conservatives are still using the same tactics. Obama is good when he answers the conservatives but he does not do it often enough. He has to step up his challenge to the republican party and its so called conservative leaders inside and outside of Congress.

The democratic party itself does not do a good job in responding to the conservative ideology of division. Worst is the fact that the voting public seems not to remember how conservatives try to divide the country and as a result nothing gets done. Many have joined the "tea party" looking for a savior when all they need to do is remember the republican party's lack of any accomplishments and vote accordingly.

People in the news media don't get it either, especially TV news. They still promote the republican talking points that divide the country over issues that are bogus. They do not have a record of positive reporting on the issues that really affect the country and its people. The conservative networks like Fox News are way over the top and many follow the script of being unAmerican. The are beyond help.

The republican party with their conservative ideology have no shame or intention of being good Americans and facing the issues. Its hell when you have no record to run on or idea's that serve the country and its people's needs. Its even worse when you have no character or courage. That says it all.

Friday, August 13, 2010

The Latest Jobs Report

The U.S. Labor Department announced that the private sector added 71,000 jobs for July. Job losses which mostly came from state governments brought the net gains in jobs to 12,000. The unemployment rate stayed @ 9.5%. So far this year state and local governments have shed 169,000 jobs because of budget shortfalls.

The private sector has added jobs for seven straight months. The rate of addition is not fast enough to satisfy those unemployed or to ramp up the economy. Consumer spending will also not be up to par until more people are back at work.

Although the above numbers are weak to grow the economy the situation is not as bad as some people think and who are predicting another recession. The fact of the matter is the economy is not only growing steady but is on tract to add more jobs that reduce the unemployment rate. This is not an economy that is coming out of a normal or mild recession but one that is leaving behind the worst recession and job losses since the great depression. It is going to take longer than usual but the country is on tract. The federal reserve needs to keep its hands off the economy and stop manipulating things beyond their control.

The naysayers will once again be proven wrong. There will be no second recession and the economy will continue to improve and grow. Jobs will continue to be created and the pace of hiring will pick up as the economy continues its upward trend. Those who would still like to see the Obama administration fail will continue their negative talk up through the November elections. It is SOP for them because they have no record of success.

Thursday, August 12, 2010

The 2001 and 2003 Federal Tax Cuts

The above tax cuts known as the "Bush Tax Cuts" are set to expire at the end of 2010 and the subject of debate. President Obama wants to retain them for certain people making less than $200,000.00 and 250,000.00 and let the rest expire which mainly affect the wealthy. Obama said the status quo on the taxes is bad fiscal policy in light of the governments decrease in revenues, economic conditions and budget deficits.

The republicans want to keep the tax cuts and recently Minnesota Governor Tim Pawlenty said congress should extend the tax cuts but want to offset them with government reductions in spending. Republicans in congress think the tax cuts are a stimulus to the economy(wrong again) and do not need to be paid for by cutting the budget. It should be noted that Pawlenty was silent at the time the tax cuts were passed and said nothing about paying for them. He now wants to cut back on entitlement programs such as social security to pay for the extension.

Bush and the republican party said the tax cuts at the time of passage would create a sustained economy and job creation but it did no such thing and in fact contributed to the economic meltdown, the loss of jobs in record numbers, deficit spending and a decrease in federal revenues. It is the same "trickle down economics" of the Reagan administration that Bush 41 inherited and then lost the election to Bill Clinton. Remember, it was "the economy, stupid."

Gov. Pawlenty statement he would cut entitlements such as social security confirms what this writer commented on many occasions here in politidose that the 20 year record deficit spending and debt of republicans Reagan, Bush 41 and Bush 43 was to bankrupt the federal government of needed revenue so programs like medicare and social security would have to be canceled or reduced to nothing.

The American people fell for "trickle down economics" twice, once under Reagan and once under Bush 43 and are still paying the price. "Trickle down economics" stops as soon as it hits the pockets of the wealthy. Why should the wealthy take a chance and reinvest their large tax breaks when there is no incentive to do so. Why would they take a risk on a sure thing when they are already wealthy?

David Stockman, Treasury Secretary under the Reagan administration is the author of a just released commentary where he blames the republican party for the fiscal and economic mess the country is now going through because of the past republican President's fiscal policies on tax cuts that deprive the federal government of revenue and did not make cuts to offset the difference. Mr. Stockman resigned as Reagan's treasury secretary after he said the administration "cooked the books." That led to eight straight years of record federal deficits during Reagan's two terms. In his latest commentary Mr. Stockman said the republicans have crippled the economy.

Congress should follow Obama's advice and let the tax cuts expire in line with his proposal. Twenty years of failed fiscal policy by Reagan, Bush 41 and Bush 43 that produced record deficits and debt says enough is enough. There should be no doubt of the conservative republicans record: Bankrupt the federal government and deprive it of the needed revenue to do those things that really matter and make a difference for its people. They do not believe in a middle class. That says it all. The past is still the key to the future for those who are willing to learn from past mistakes.

Wednesday, August 11, 2010

Big Oil, Confirmation Of Industry's Deceitful Past

In a story by David Hammer in the Times Picayune dated August 5 four Major Oil Companies, Exxon-Mobil, Chevron, Shell and ConocoPhillips vowed that in six months, their plans for a $1 billion system to contain oil well blowouts will dramatically improve the industry's preparedness. Top engineering officials from those firms appeared before the head of the new federal offshore oversight agency at a public hearing at Tulane University. They promised, in six months, an improved blowout response, and a fully revamped system ready for entire industry to share in 18 months.

The oil industry which the above companies are a part of assured the public for over 50 years the industry had the safety capabilities to prevent a blowout and remove any spilled oil from the Gulf before that oil reached land and now after over 3 months of the BP explosion and spill they tell us they won't have the means to do what they said they could do all along for another 18 months. These are the same companies who want the 6 month moratorium lifted, yet they are 18 months away from a system. They have completely ignored the 11 workers killed, those injured and the families who are still paying the price for the BP explosion.

There seems to be no shame by the oil industry for being so deceitful. Every time their officials open their mouth and every time elected officials support their positions prove that President Obama was right in declaring the moratorium and that the President displayed his leadership and courage concerning the spill and its aftermath. The oil industry and those elected officials who support their positions have reached the bottom of the barrel.

Melanie Driscoll, director of bird conservation for the National Audubon Society's Louisiana Coastal Initiative, offered a sobering counterpoint to the oil companies' assurances. Delivering a statement on behalf of the wildlife affected by the spill she said: "You protect us after the fact with imperfect protection, imperfectly managed. It must never again be acceptable to perform a massive chemical experiment on our Gulf waters and the living resources within. After the 11 rig workers, we are the next to die."

The public and government officials must never trust anything the oil industry leaders say again unless they can back up any pronouncements with facts and the ability to demonstrate such facts.

Another Tuition Increase For Louisiana Public Colleges

In a reported story by the Associated Press, students returning to Louisiana's public colleges and two year community colleges will be faced with an 8 to 10% increase in tuition this year. The reason? Legislation passed by the Louisiana Legislature, backed and signed into law by Governor Jindal. Prior to this new law the legislature had to approve any increase in tuition. The legislators and Jindal got themselves off the hook of approving college tuition increases by allowing the colleges to act alone in the matter. No courage or leadership there.

Budget cuts recommended by Jindal to the legislature for higher education was adopted to balance the budgets which the governor and legislature still do not have a handle on. Colleges said they had to have more revenue to balance the budget cuts, hence, the increase in tuition. Once again, our so called leaders are brain dead concerning the budget and how to deal with the states fiscal problems.

It has been pointed out here in "politidose" and in other commentary how budget cuts under this administration has affected the average taxpayer at the same time the budget contains $7-8 billion in corporate welfare to those who need it the least and where no cuts have been made. The Saints who are owned by a multi millionaire is a prime example. Mr. Benson is laughing all the way to the bank. One can hear him saying to himself those dummies fell for it again.

This writer has pointed out on many occasions how so called conservative elected officials have stuck it to the average citizen in a hundred different ways under the guise of smaller government at a time of severe economic conditions. Let there be no mistake, under this administration the average citizen will continue to see his quality of life and economic status decline.