The Middle Class Tax Cut

President-elect Obama's promise of a middle class tax cut is needed more now than ever before.  It is estimated that consumer spending represents 70% of the economy and with the economy in free fall, retail sales down big time and still falling and the unemployment reaching 10.1 million people, the middle class is in a bind with too few dollars to spend.

 

The people who have benefited the most from republican trickle down economics are holding all the cards now.  These are the people who were supposed to use the money to grow the economy and create jobs.  Yet so far this year through October the economy has lost 1,179,000 jobs and the economy is in its second recession in 8 years.

 

A substantial tax cut for the middle class will go a long way to help revive the economy and put the middle class back in the ball game to some degree.  The big problem is that the middle class has fallen so far behind, part of their tax savings will have to go to pay off debt and to replenish savings.  That is good also but it means less money to use for buying to keep our economy running and hiring people.

 

In addition to the tax cuts, the middle class needs better paying jobs and a larger share of the profits they help create.  Corporate America must no longer be able to reap the benefits of what their workers produce without sharing those benefits with the worker.

 

The tax cut should be only the first step to help the middle class advance its economic power and Obama and his administration should keep that as a priority.  That would be the greatest foundation for a sustained economy and job creation.  President Kennedy said over 40 years ago business needs customers to have a productive economy.  It should be obvious that has never changed and it is playing out today.

 

It should be noted the 10.1 million workers without jobs is the highest since 1983 when Reagan was in office.  Republicans have run the country 20 of the last 28 years, yet it was the democratic administration of Bill Clinton who achieved the greatest economy and job creation and where the middle class did better.  President-elect Obama's administration will turn things around for the middle class, the economy and job creation.  Twenty years of trickle down economics should be put to bed with good reason.

Time For Change

Another Republican administration will come to an end in two months with the economy in shambles, massive job losses, layoffs, rising unemployment, massive deficit spending, and debt.  If that sounds all too familiar, it's because that is a description of the republican record and you read it first here on politidose in several articles going back to early this year.

 

Of the last three Republican presidents, Ronald Reagan did the best with the economy, but it too went into decline 18 months before he left office.  He then turned the mess over to Bush 41 who never got hold of the economy and ended up losing his reelection bid to Bill Clinton.

 

All three Republican presidents repeated the same mistake.  They never had a broad base economic policy to create a sustained economy or job creation and instead believed in trickle down economics.  Neither Reagan, Bush 41, or Bush 43 balanced the budget in the 20 years they served, and they are responsible for the majority of the massive national debt which is now in excess of $10 trillion.  It was less than one trillion dollars when Reagan took office.

 

The present Mr. Bush's failed policies are responsible for the massive melt down of the economy and the hardships facing our country.  Republican administrations have repeated and will continue to repeat (if given the chance) the trickle down policy that favors the wealthy over the middle class and has resulted in the greatest transfer of wealth in history.  No economy can be sustained if the middle class does not have the means and resources to fuel the economy.  That is the shameful republican legacy.  It was a Democratic administration led by President Clinton which presided over the greatest economy and job creation in the last 50 years and it was the Clinton administration that advanced the middle class.

 

Those three republican presidents had 20 years to achieve a sustained economy and job creation and help the middle class but they failed the test.  It is time for a change.  Vote Democratic on November 4. 

The Wealth Parade Continues

Because of what is happening on Wall Street and in the financing industry, lets take a look back at the May 5 issue of Forbes Magazine where Forbes ran a story on the top 20 individual earners of hedge and private equity funds.  Those top 20 earned a combined total of $18.7 billion last year, up 43% from 2006.  Part of the headline reads, "crumbling home prices and $100 oil helped wall street's highest earners to pull in $19 billion last year."  If you averaged out what those 20 earners made, their average earnings would be $935 million each in 2007.  

 

T. Boone Pickens was one of the 20, earning $1.2 billion.  His hedge fund, BP Capital Equity, grew 24% while his commodity fund grew 40% due to large positions in Suncor Energy, Exxon-Mobil, and Occidental Petroleum.  This is the same T. Boone Pickens who now wants to replace gasoline with natural gas as the fuel for automobiles.  

 

Those 20 earners are only a drop in the bucket of the wealthy; their power is so great as to be able to manipulate the financial markets for their own personal gain.  When the market loses 700 points, and price shares are dropping, they are the ones with the financial resources to scoop up those shares.  There is nothing wrong with being wealthy, but when 1% of the people own 50% of stocks, that's called a monopoly.

 

To make matters worse for Americans, the following headline appeared in a major newspaper on September 30.  "Three institutions have been gobbling up financial giants as fast as they fall, building unprecedented market power."  The three to which the headline referred were Bank of America, Citigroup, and J.P. Morgan Chase --- just what the average American needs, another powerful monopoly to control money and wealth and to stick it to the average working American. 

 

If ever our country needed people power, middle class people power at that, it is now.  We have the votes to change things this November, and it is our duty to do so.

The Truth About Taxes

Parade magazine recently ran an article that examined the tax plans of Senators Barack Obama and John McCain. Tax policy expert Alan Viard of the Conservative American Enterprise Institute said the following:

 

While the aggregate tax cut is bigger for McCain, a larger number of voters get more money under Obama's plan.  Obama is choosing to emphasize tax cuts for the middle class, whereas McCain's strategy is to keep rates lower at the top as a way to facilitate long-run growth.  For example, a person with an income of $1 million could see his taxes increase under Obama by $94,000, whereas under McCain's plan he could save $48,000.. 

 

For those who follow the economy and past tax plans of Republicans, one can quickly see McCain's tax plan represents the failed ideology of trickle down economics.  As recent as seven years ago, President Bush pushed his tax plan that benefited the wealthy and said that his tax plan would create a sustained economy, new job creation, and investments by the business community.  So far, those objectives have never been reached, and instead we have had two recessions, Wall Street and financial market melt downs, and the use of billions of dollars of taxpayers money to bail out corporate America.

 

The country can no longer afford this Republican tax give away at the expense of the average American. Where is the long-run growth that Republicans promised?  Nowhere to be found, and now it's time for the middle class to have the benefit of tax relief.

Time For Action

Both Presidential candidates and their party have attacked the excesses of corporate America, Wall Street, CEO's golden parachutes, and other extreme benefits to the wealthy.  It's a good sign but remember this is an election year.

 

If both parties are serious about this rape of America, now is the time for Democrats and Republicans in Congress to come together and demand, "no more."  They should put corporate America and their lobbyists on notice.  There will be regulation, oversight, checks and balances, and accountability. No more special favors and no more special access to members of Congress. 

 

The second thing both parties must do is review the tax code and eliminate all the loopholes that benefit the wealthy and well-off.  Loopholes and special favors do not get into the tax code by accident --- Congress put them there and Congress needs to fix it.

 

Reigning in the excess of corporate America won't be easy, but it can be accomplished if both parties exhibit backbone.  The time is right and the voting public should demand action and hold both parties accountable for their actions, or rather, inactions.

Job Losses Continue To Take Its Toll

The Labor Department announced the economy lost 159,000 jobs in September, the ninth straight month of job losses and the highest since 2003.  So far this year, the economy has lost 760,000 jobs and the department says more will continue.

 

Job creation on a steady basis has never been a priority for Republican administrations and certainly not the administration of George W. Bush.  The reason is because Republicans have a tax policy and not an economic policy for a sustained economy.  Job creation in the first term of this President was the worst since Herbert Hoover.

 

The norm accepted to define a recession is two quarters in a row of negative growth.  But serious people know job creation is in recession,  the housing market is in recession, the financial markets are in recession, and the economy is in recession for the middle class.

 

Our economy is locked down and drowning in federal deficits and debt at record levels.  The Republicans want to bankrupt our country so the neocons can kill social security, medicare, and other needed programs they hate.  One can expect the meltdowns that always happen on their watch. The Republicans have run the country 20 out of the last 28 years and their fiscal and economic record is pitiful.  They say government is the problem, but it is their kind of government that is the problem.

 

Our country and its people are in for hard times in the near future because of their reckless policies.  The problems can not be reversed quickly and it's not going to be easy to dig the country out of the hole that has been dug.  On November 4th, the American people need to be involved in our political system and hold those elected officials responsible for their reckless action.

John McCain: Not Maverick; Erratic

"The fundamentals of our economy are strong."

Who said this?  When did they say it?  If one was watching the news as of late, the guess could be made that Bill Clinton said this during the 1990s when the economy was prosperous and both Wall Street and Main Street were satisfied. 

But it wasn't Bill Clinton who said this.  And the person who said this wasn't talking about the '90s.  John McCain said the above quote on Monday, September 15, when Lehman Brothers collapsed and the stock market had its worst day since 9/11.  The American economy, ever since that fateful Monday, has been in a steep dive with no end in sight, leading many to believe that a depression is on the way.

Yes, on Monday the "fundamentals of our economy" were "strong", but by Tuesday John McCain reinvented himself as a the modern day Teddy Roosevelt, rallying against the corruption of Wall Street Barons.  

John McCain continued that theme through last week and into this week when talk of a $700 billion bailout plan was proposed by the White House.  John McCain, sensing a political gold mine, decided to suspend his campaign, call off the debate, and fly to Washington to save the day.  

There was, of course, a few issues to be had with the above statement.  For one, is it really fair to say that your campaign is suspended when your television ads are still playing, your campaign personnel are going on cable news 24/7 to attack Barack Obama, and Sarah Palin, your Vice-Presidential pick, is holding campaign rallies across Pennsylvania?  Secondly, why call off the debate?  Isn't a crisis time like this a time when the American people most need to hear from their leaders, especially the two men who could inherit this economic crisis?  More on the calling off of the debate in a minute.  Finally, John McCain was not needed in Washington.  He is not on the Senate Banking committee, the Senate committee negotiating with the White House.  John McCain, putting it bluntly, went to Washington to look pretty.  He accomplished nothing, and, sadly, Congress is now further away from settling on a plan than they were before John McCain came to their rescue. Why are they further behind?  Well, according to several members of the House and Senate, John McCain did what he said he wouldn't: politicize the event and in turn make a bipartisan effort into an extremely partisan one.  

The debate, as we now know, is back on.  No solution has been reached, but John McCain is, as usual, going back on his word.  It's clear to me and should be obvious to all why McCain attempted to postpone the debate.  Just a few hours after making his "I'm not going to the debate" statement, McCain suggested that the Vice-Presidential debate next week should just be replaced by a Presidential one.  How convenient!  Sarah Palin, the least qualified and knowledgeable VP candidate in history, wouldn't have to face tough questions yet again. Thankfully, Barack Obama and Joe Biden stood firm; Friday's debate would go on, with or without John McCain, and the Vice-Presidential debate would be next week no matter the circumstances.  Left with the option of either going back on his word or leaving Obama with one and a half hours of free national exposure, McCain chose the latter.  

So the debate will go on and we'll finally see McCain and Obama face-to-face confronting each other on the crucial issues facing America, but the happenings of the past two weeks surely brings into question McCain's judgment and rationality.  Perhaps even more than the debate, these last two weeks have drawn a clear contrast between Obama and McCain:  Obama is cool under pressure, while McCain acts erratically. 

Another Massive Failure On The Republican Watch

President Bush, as we all now know, has asked Congress to bail out the financial industry one again, this time to the tune of $700 billion.  And although swift action from Congress is necessary, Congress needs to review this plan with extra caution and care and make certain that it comes with strings attached (in other words, unlike the Iraq War resolution).  

 

What is happening with the financial industry is the consistent pattern of Republican ideology, a non-governing attitude of government.  Let's check the Republican Party's past and present record:

 

    -The great depression and stock market collapse of 1929.
 
   -The savings and loan collapse and subsequent bail out in the late '80s that cost the taxpayers over $125 billion.
    
   -The stock market collapse of 1987 know as "black Monday" and a loss of 22.5% of its value --- the largest
    one day loss in history.
 
   -The stock market and financial market scandals during the current President's term and the most recent
    bail out of private industries.

 

All of those "shocks" are related to economic conditions, and all were overseen by Republican Presidents.  When will conservatives get the idea: the status of the U.S. economy is related directly to the government's fiscal policies, set by the President. Outside and unforeseen circumstances also have a bearing on the economy, but that is why a sound fiscal policy is essential: to make sure the U.S. is ready for those circumstances.  

 

President Bush tells us the problem with the financial industry melt down started with unsound lending and borrowing practices.  Well, under Reagan-Bush 41 and Bush 43, which covers a period of 20 years, not one federal budget was balanced and deficit spending and borrowing occurred every year, along with record debt their administrations created.  

 

The bottom line: George Bush and the Republicans got "drunk" on their own policies and passed it on to Wall Street and the financial industry.  Worst of all, the American taxpayer is being asked to deal with the "hang-over".  

The Presidential Election and The Economy: Part I

Over 45 years ago, President Kennedy, in his State of the Union address of January 14, 1963, spoke about the economy and pushed for a reduction and revision in federal income taxes.  However, in conflict with Republicans say today, Kennedy had the wisdom to understand that tax reduction was not enough to sustain the economy and told the American people so.  His tax proposal did pass Congress, but was not tilted in favor of the wealthy or Corporate America, but rather the America middle class.

 

Here are some excerpts from President Kennedy's State of the Union address which outlines the broader picture for a stable economy:

 

"America has enjoyed twenty-two months of uninterrupted economic recovery.  But recovery is not enough.  If we are to prevail in the long run, we must expand the long-run strength of our economy.  We must move along the path to a higher rate of growth and full employment.(...)

 

I do not say that a measure for tax reduction and reform is the only way to achieve these goals.  No doubt a massive increase in federal spending could also create jobs and growth-- but in today's setting, private consumers, employers, and investors should be given a full opportunity first.

 

No doubt a reduction in either individual or corporation taxes alone would be of great help--but corporations need customers and job seekers need jobs.

 

Tax reduction, alone, however, is not enough to strengthen our society, to provide opportunities for the four million americans who are born each year, to improve the lives of thirty-two million americans who live on the outskirts of poverty.  The quality of American life must keep pace with the quantity of american goods.  This country cannot afford to be materially rich and spiritually poor.

 

First we need to strengthen our nation by investing in our youth.  The future of any country which is dependent upon the will and wisdom of its citizens is damaged and irreparably damaged, whenever any of its children is not educated to the full extent of his talent, from grade school through graduate school.  Today, an estimated four out of every ten students in fifth grade will not even finish high school-- and that is a waste we cannot afford.

 

In addition there is no reason why one million young Americans, out of school and out of work, should all remain unwanted and often untrained on our city streets when their energies can be put to good use.

 

We shall be judged more by what we do at home than by what we preach abroad.  Nothing we could do to help the developing countries would help them half as much as a booming U.S. economy.  And nothing our opponents could do to encourage their own ambitions would encourage them half as much as a chronic U.S. economy.  These domestic tasks do not divert energy from our security--they provide the very foundation for freedom's survival and success."

Both parties could learn a great deal from President Kennedy's economic policies.  

 

Next Up, Part II

Another Drunk On Wall Street

Lehman Brothers Holding, an investment Bank, just this week filed the largest bankruptcy in American history.  At the same time, Merrill Lynch, the world's largest recognized brokerage, avoided the same fate with a $50 billion transaction to become part of Bank of America Corp., which has the most deposits of any U.S. bank.  This deal will create a financial giant --- just what the people need: another monopoly in the financial markets.

 

The Dow Jones average responded to this news by dropping 504 points; approximately $700 billion evaporated from retirements plans, government pension funds, and other investment portfolios, reported business writers from the Associated Press.  This is the same industry Republicans want to shift Social Security money in the form of private accounts.  How would you like $700 billion to disappear from Social Security over night because of the reckless actions financial institutions take.

 

The worst part is that while this meltdown is taking place, the CEOs are still being given millions of dollars in bonuses, stock options, and other financial rewards.  Republicans have been in bed with corporate America from the beginning with policies that favor the wealthy and free them from any restraint or oversight. The sky is the limit.  Despite what T.Boone Pickens says, a record of wealth has been transferred from the average workers to the pockets of corporate America; CEO's make 400 times the average worker.  

 

So called economic and stock market experts on CNN, CNBC, and MSNBC end up aiding and abetting the Republicans and corporate American greed.  The only thing they are an expert at is giving out propaganda that follows the conservative Republican ideology. 

 

If the American people are really concerned about the future of their children, John McCain and the Republican party are not the answer in November.  They would only continue the policies of transferring more and more wealth from the average American to the wealthiest 1% --- that is the Republican policy. 

The Presidential Election and The Economy

With the November election only 50 plus days away and the economy being a top issue with the American voters, I will write a series of articles dealing with the two candidates and their party's intention on the economy.  Both parties have a clear record to be judged on, so there should not be any excuse for voters not to know which party and candidate will perform the best.

 

The readers of Politidose know from previous articles I have written that, in my judgement, the Democratic party's performance is the best by far in creating an economy that is sustained with a balanced budget, surpluses, even job creation, low unemployment, rising wages, low inflation, low oil and gas prices, and reasonable increases in spending.  

In the series of articles I will go back some years and share with the readers thoughts of some economic leaders of the past and also past presidents.  In the end, I believe the reader will understand why past Democratic administrations were able to do better for the country and its people.

 

If the American people stop and realize that when President Bush leaves office in 4 months, that he will leave behind an administration that is the biggest deficit spending and debt creator of all time and never had an economic plan to pay for his reckless deficit spending, the American people should surely know how important this election will be.

 

Next up: Part I

Fannie Mae And Freddie Mac: Another Government Bailout

Treasury Secretary Henry Paulson recently announced the take over of mortgage giants Fannie Mae and Freddie Mac by the federal government.  The move was done, said Paulson, in a bid to help reverse a prolonged housing and credit crisis with the idea being to keep owners in their homes.

 

It has been estimated that the bailout will cost at least $250 billion, but Paulson said he could not say for sure.  Regardless, it is another bill the tax payers will be saddled with, and once again it happened on the Republican watch.  While speaking about the financial crisis a few weeks ago, President Bush who thought the mic were off said, "Wall Street got drunk."  What he failed to say was Wall Street got drunk because of his own policies --- no oversight and a lack of regulation by the regulators charged with that responsibility.

 

We have the Wall Street scandal of manipulating the market, the mortgage scandal, and the federal bail out of Bear Stearns along with the infamous Enron scandal --- all on Mr. Bush's watch.  I have mentioned in previous articles how Republican administrations seduce the public with tax cuts that benefit the wealthy and then get into the tax payers pockets a hundred different ways. If the voters took time and examined the fiscal and economic record of the last three Republican presidents, Reagan, Bush 41, and Bush 43, which covers a 20 year period, they would be shocked to find how badly they performed compared to the Democratic administration of Bill Clinton.

 

Bottom line: a vote for John McCain in November is a vote for the continuation of this Republican pattern with its reckless policies.

This Just About Says It All

credit to Steve Greenberg

You Read It Here First --- Obama's Energy Plan

Barack Obama, the Democratic nominee for president, spoke in Michigan on August 4 and outlined what his and America's energy policy would be if he is elected president.  Much of what he said was outlined here first on Politidose in posts dated May 5, July 4, and July 31.

 

Renewable energy instead of our dependence on oil and gas; fuel efficient automobiles, and etc.  The greening of America would produce new industries, create new jobs that pay well and reverse the environmental problems that are piling up on us today.  A $1000 energy rebate to the people to help with rising fuel costs.  Tax credit of $7000 to purchase fuel efficient automobiles and etc.  All of that has already been written about here.  

 

Senator Obama rightly threw down the gauntlet.  America has to change its energy policy and its use of energy as we know it and start now.  The country can not wait any longer; time is running out and action is needed.  To erase any doubts that America can accomplish these goals, Obama reminded the people of President Kennedy's pledge to put an American on the moon when the doubters asked, "How can we do that?".

 

Obama's comprehensive energy plan is a positive and bold step towards the greening of America.  The people should embrace his sensible and practical approach to our energy problems. I would suggest that people read his entire speech on the subject.

Need Some Extra Cash?

As this economy is surely taking a toll on all of us, I just want to share with you a great website I found called Cashcrate.  It is 100% legit and you can make real money easily.  All you have do is complete surveys.  Just give your address and Cashcrate will send you a check the next month.  A survey takes about 1 to 3 minutes to complete and they pay anywhere from $.25 to $5.00 a piece.  Here's a tip: give a fake phone number and an email account you don't use often.  I have not had any problems, but I don't like giving out phone numbers and I don't want to start getting a ton of spam mail.  

Click here to sign up or click the banner on the front page of POLITIDOSE.  Good luck!

(And of course, if you are fortunate enough to be financially secure, you could complete a few surveys and donate your earnings to Barack Obama, the DNC, or one of the great Democratic candidates running in your home state.)

The Republican Cycle Of Record Federal Deficits And Debt

The champions of deficit spending and the creation of debt are indeed the so called conservative Republican presidents.  On July 28, Mr. Bush's White House announced that the federal budget deficit for fiscal year ending Sept. 30, 2009, Mr. Bush's final budget, will be another whopping record of $482 billion --- by far the largest ever.  It was originally projected to be $400 billion. 

 

The White House also announced that this year's budget deficit for fiscal year ending Sept. 30, 2008 will be $389 billion.  It was projected early on to be $260 billion.  The White House and Mr. Bush are now trying to blame everything and everyone under the sun for this deficit explosion, but now it won't wash because of his record of reckless fiscal policies.  Lets look at Mr. Bush's irresponsible deficit spending and debt:

 

If the latest two projections on the deficit hold up Mr. Bush's total deficit spending for 8 years in office will be over $2.5 trillion and he will have added over $4 trillion to the national debt.  Ronald Reagan's total deficit spending for 8 years was $1.4 trillion and he added $1.9 trillion to the national debt.  Mr. Bush 41 (George Herbert Walker Bush) deficit spending for his 4 years in office was $1.03 trillion and he added $1.5 trillion to the national debt. 

 

I will let the readers add those numbers up so they can understand the reckless behavior of those so called conservative Presidents.  They will have served a total of 20 years when Bush 43 leaves office and did not balance one federal budget in those 20 years.  The reckless fiscal behavior of those 3 Presidents is the reason the economy was never sustained on their watch and why job creation was uneven and suffered job losses.  They never had a true economic policy.  They had a tax policy of trickle down economics which never worked to sustain the economy. 

 

Bill Clinton reversed Reagan-Bush 41 reckless behavior of 12 straight years of deficit spending and debt by reducing the deficit every year his first 4 years in office and then created a balance budget with surpluses each of his last 4 years.  His administration had a $62.8 billion surplus for his 8 years in office and paid down over $400 billion on the national debt.  Mr. Clinton had an economic plan that produced the greatest economy and created a record number of over 22.7 million new jobs.  He also left Mr. Bush a projected surplus of $5.6 trillion which Mr. Bush squandered. 

 

The Republican Party has no record of being fiscal conservative despite their lies.  The record shows their real intention, to bankrupt the country to deprive the government of funds for Social Security, Medicare, and other programs that have been a benefit to the American people.  Their tragic record speaks for itself.  And the present Mr. Bush is by far the most tragic.

Innovation: Lost in America

Webster's New World Dictionary defines innovation as such:  1) The act or process of innovating;  2) Something newly introduced, new method, custom device, etc.;  3) Change in the way of doing things.

 

Our fore fathers were innovative in the contents of our constitution.  Democracy is a way of life that allows us to be innovative.  American business and industry has been innovative in the past in what they produce and the American people have been innovative in adjusting to conditions thrust upon them.  Sadly, only the former and the latter are working for America and its people at the present time.

 

Corporate America is in the dark age of innovation.  We have a crisis with the use of fossil fuels for many years but noone in corporate America is willing to take the lead and be innovative.  Auto manufacturing have to be told by the government to build better vehicles with better gas mileage.  The oil and gas industry continues to push for more drilling and in pristine places instead of working to produce alternate fuels.  The list can go on and on with all the problems we have today and I know the people understand where I am coming from.

 

The problem is two fold:  Corporate and political greed.  One can not exist without the other.  Why does corporate America have to innovate when they can get corporate welfare and tax breaks from the government for any little thing?  Why do CEO's have to think about innovation when they take home millions even when their companies do poorly?  And why should elected officials perform when they can get elected and reelected because of all the money they receive from lobbyist in the form of campaign contributions?  Make no mistake, our country can handle the problems that are with us today with the right leadership from our elected officials and corporate America.  Innovation can not be bought.  It is an attitude of progress for wanting and creating some thing new and useful to move humankind forward.

 

In order for people to understand how greed has retarded innovation in America I will pass on the following information published in the book, " A Time To Fight" by Senator Jim Webb.  It tells the sad story of what is happening in America.

 

In 1968 The average Corporate CEO made 20 times the salary of his average worker.  Today that multiple is over 400 times his average worker.

 

Japanese CEO's make 10 times the salary of the average worker.

 

German and S. Korean CEO's make 11 times the salary of the average worker.

 

French CEO's make 16 times the salary of the average worker.

 

Italian CEO's make 19 times the salary of the average worker;  Canadian CEO's make 21 times the salary of the average worker;  British CEO's make 25 times the salary of the average worker.

 

All of these foreign CEO's direct companies that compete with the United States.

 

The most productive Countries, Germany, Japan and S. Korea have  the least amount of income disparity between their CEO's and their workers.

 

Half of the stocks in America are owned by 1% of the people.

 

This great disparity between American executives and their workers is a disgrace and has grown at a time when workers are upon hard times.  The American worker should share more in the wealth they helped create but instead, wealth is being transferred to their CEO's.  And get this, corporate America has been cutting back on their workers, retirement, pensions, health insurance and benefits at alarming rates.  Innovation?  You won't find it in corporate America.  Greed, yea you got that right.

 

Former V.P. Al Gore has started a campaign to have the next President and Congress act to have our country produce electric power from renewable fuels and to discontinue using fossil fuels for that purpose and do so in the next 10 years and of course corporate American and those who want to continue the status quo say the goal can not be reached in 10 years.  These are the same voices who said America could not reach President Kennedy's goal of putting a man on the moon.

 

Innovative corporate America --- it has not existed for many years.  Their ideology now is corporate welfare, greed, and tax breaks to add to their profits and transfer of wealth.  If the average worker were allowed to share in the wealth they help create our economy would be strong and sustainable.  The next President  and Congress needs to address the problem.

Another Financial Meltdown On The Republican Watch

The Bush administration's policy and lack of a true economic plan has once again plunged the financial and mortgage industry into collapse.  The Federal Government has already bailed out Bear Stearns.  Now they are bailing out Freddie Mac and Fanny Mae and the FDIC has just announced the take over of Indymac Bank which has $32 Billion of assets.  As of this writing there are 90 Banks on the FDIC's list of problem banks, up 50% since the end of 2006.  No one yet knows where it will end and how much it will cost the taxpayers. 

 

In case one forgets, we had the Savings and Loan meltdown in the 1980's during Reagan's term in office.  50% of the Savings and Loan Industry went belly up.  The Federal Government had to bail the industry out.  The reports say that bail out cost the taxpayers $150 billion.  Some suggest it was 5 times that much but the Federal Government has never given the American people an accurate count of what it actually did cost the taxpayer.

 

Both Bush and Reagan pushed through tax cuts which benefited the wealthy that fit their ideology of trickle down economics.  Both of them also believed in deregulation and letting corporate America do what they want to do at the expense of the middle class. 

 

The Bush administration also presided over the stock market scandal where the regulators did not regulate.  The American people get themselves in trouble by voting Republican especially when Republicans have a sorry record on the economy and protecting the middle class.  Mr. Bush's sorry approval rating of 28% comes after the people elected him twice.  Now as he nears the end of the line the country is in terrible economic shape and no end in sight. 

 

These so called conservative Republican Presidents promise the people tax cuts and then get into the people's pocket a hundred different ways.  When the cost of the current financial meltdown is calculated and the debt created by this President is tallied, God help us all if people still think Republicans are conservatives.

The Roadblock To Job Creation And A Sustained Economy --- Conservatives

The economy lost 62,000 jobs in June, the sixth straight month of job losses that total 438,000 since the first of the year.  As of this writing, we are in the midst of a second recession on Mr. Bush's watch and he has no clue what to do about it.  Worse yet, the labor department says the country can expect the job losses to continue. 

 

Conservative Republicans are masters of deceit when it comes to the economy and job creation.  Now we are in the final months of the general election and John McCain has no plans to change the status quo.  In fact, he has no credibility on economic matters.  His voting record in Congress rubber stamped Bush's economic decisions even the massive debt this President will leave our children and grand children. 

 

The economy lost jobs in the first four years of Bush's term.  The last time that happened was under the administration of Herbert Hoover, another Republican.  The Clinton Administration created approximately 4.1 million more jobs in eight years than Reagan-Bush 41 created in 12 years.  When Bush 43 leaves office his economic and job creation performance will be, to say the least, sorry.  And when his record budget deficits and debt is added to that he will have earned the title of the worst President in our lifetime.

 

The other legacy that Reagan, Bush 41, and Bush 43 has scarred our country and people with is the largest transfer of wealth from the middle class to the most wealthiest Americans.  Our people and country will continue to suffer because of that and it will take many years to reverse the trend.  Our economy will not sustain itself until this transfer of wealth flows back to the middle class.

 

Corporate America controls every major consumer need because of their buying power in Washington.  They enjoy corporate welfare, tax breaks, tax loopholes and other goodies our elected officials are willing to lavish them with.  Try this on for size: one percent of the people own half of the stocks in America. 

 

Conservative Republican Presidents have pursued over the years policies that favor the very wealthy at the expense of the middle class (The heart of any Democracy) and put our people in debt because of their ideology with this transfer of wealth.  Over 7 trillion dollars of debt created by Reagan-Bush and Bush 43, along with a few more trillion dollars of interest payments on their debt could have gone a long way to pay and provide for those needs that really matter and make a difference for our people and the country.  But they choose to destroy the middle class in favor of an ideology of wealth for those who need it the least.

 

If any one thinks a Conservative Republican will balance the budget, create a sustained economy and job creation, have the middle class share in that part of the wealth they deserve because of their working sacrifice and move our country forward, they are sadly mistaken.  Conservative Republican Presidents do not have any record of doing that in the last 30 years.

 

The November election is very critical for America, its economy, and the middle class.  The United States and its people can not afford another Republican President. 

Senators Obama and McCain On The Economy

Obama and McCain outlined their approach on how to revive the nation's economy.  Both their plans rely heavily on taxes.  Like Reagan-Bush and Bush 43, their's is a tax policy and not an economic policy so it will not result in a sustained economy or job creation on a sustained basis.  They seem to have learned nothing from the last three Republican Presidents concerning the economy.

 

McCain's Plan:  (1)  Reduce regulation. (Like as if Bush paid any attention to regulation)  (2)  Cut Corporate Taxes;  (3)  Expand free trade agreements;  (4)  Cut Government Spending;  (5)  Maintain Bush's tax cuts for the wealthier Americans.

 

Obama's Plan:  (1) Expand health insurance for all;  (2)  Reducing income inequality;  (3) Raise taxes on Wealthy Americans;  (4)  $50 Billion economic stimulus plan and tax cuts for middle income Americans.

 

McCain plans to pay for his proposal by reducing spending but Republican Presidents and Republicans in Congress including McCain do not have any record of reducing spending.  In fact the Republicans are the biggest spenders of all time and deficit spenders at that.

 

Obama plans to pay for his proposals by raising a variety of taxes including increasing capital gains rate to 20%; increasing taxes for families with incomes over $250,000. and ending the cap on Social Security income now set at $102,000. by also taxing income over $250,000.

 

McCain and Obama's announced plans are not an economic policy to answer the serious problem facing America.  Neither one mentions balancing the federal budget, so they are committed to keep piling on debt which is the main cause of our economic problems.  The United States can not keep paying a half trillion dollars a year just to pay interest payments on the national debt.

 

Where do they stand and what are their plans for the Greening of America, for conservation to reduce Energy usage; for reducing gasoline prices?  Both voted for Bush's energy bill that gave the Oil and Gas Companies $17 Billion in tax breaks.  The Oil and Gas Companies really needed that;  yea, tell me another fairytale.  They should both be urging congress to reduce the speed limit on the Interstate system to 55 MPH like President Carter did.  It worked and worked well.  In fact both of them should be in Washington introducing that measure.

 

I have commented before that stimulus packages do nothing to create a sound economy.  In fact they come after the economy goes south.  In other words, after the fact.  The idea is to have a sound economic policy that is broad based with the intent of balancing the federal budget.  We are near ending eight years of an administration who has wrecked the economy and put the country into record debt.  The President, Republicans and Democrats in Congress have offered no way to pay for the war in Iraq and the cost will soon hit the trillion dollar mark and climbing.  Sadly, Obama and McCain are AWOL on the issue.

 

We the people are asked to believe in change, yet both candidates have had an opportunity to change things in Congress but failed to do so.  New we have their proposals concerning the economy that also fails to change the status quo or to answer our economic problems.

 

We are told that this is an important time in our history, yet, we have two candidates without any original thought and still stuck with recycled proposals that are supposed to pass as an economic policy.  Where are Americas true leaders for the future?