Give It the Ole Heave Ho Says the O ’
Mr Obama stated in his First State of the Union Address "I don't quit,' vowing to make job growth a top priority, urging
a divided Congress to give the ole Heave Ho with boosting the still-ailing economy with fresh Keynesian Economics,
(stimulus spending) For determination this guy deserves something. Maybe Change they all can depend on in the
upcoming election. The majority of American Voters will agree with Mr Obama when he stated, "Change has not
come fast enough," before a politician-packed House chamber and millions of people who listened in on his speech.
Mr Obama went on to state, "As hard as it may be, as uncomfortable and contentious as the debates may be, it's
time to get serious about fixing the problems that are hampering our growth." And what is hampering the growth of
our country is what is titled as the Golden Decade has long past and the Keynesian Era has taken control.
According to Richard W. Rahn, Senior Fellow at the Cato Institute and Chairman of the Institute for Global Economic
Growth., for many years (until 1983), the Federal Reserve implicitly followed the Taylor Rule (a formula that provides
central bankers with information about whether they are creating too much or too little money) to guide monetary
policy, which gave the United States both a falling and relatively stable rate of inflation, says Rahn.
During that golden quarter-century, both the presidency and Congress switched parties a couple of times.
Theoretically, it should be possible to go back to the policies that gave us the golden quarter. However from how
both parties have recently adopted the Keynesian Theory it is more likely than not that they the only change that can
be expected is in 2010 done by the American Public at the voting booth.
The American public understands when the government is growing faster than the economy the result is further
damage will ultimately occur. However when the economy and the private sector grow faster almost everyone will be
much better off.
The golden quarter focused around a long-term trend toward lowering tax rates. Currently congress and this
administration have been characterized by increasing taxes and proposing many additional taxes, only to result in
further damage to the economy . Many of the tax rate increases, such as the capital gains tax and corporate income
tax, are well above their revenue and welfare-maximizing rates and should be reduced, not increased..
Source: Richard W. Rahn, " Recouping the golden quarter," Washington Times, January 27, 2010.
Another chief demand from Mr Obama was for Congress to continue forward with his socialized health care overhaul,
which was placed in danger when Scott Brown was elected in the US Senate Seat and sent a clear message to the
others that 2010 is coming up, and their seat is not guaranteed in Congress,, "Do not walk away from reform," Mr
Obama said, "Not now. Not when we are so close." And Close we are! Just a little over 9 months for the rebirth of
Change they can depend upon.
Something else the American Public should know about, and compare is the Cash For Clunkers Program with what
is being taunted as Free Healthcare. Those who traded in a clunker worth $3500,received $4500 off the cost of the
vehicle an apparent "savings" of $1000.
However, something that no auto dealer will tell you is, you have to pay taxes on that $4500 credit April 15th. If you
are in the 30% tax bracket, you are expected to pay a tax of $1350.00 on that $4500.00 gift from your dear Uncle
Sam who lives in Washington DC. So, instead of saving $1000, you actually pay an extra $350 back to to the
government. Wait, There is more.
When the new car buyer decided to trade in their automobile it was most likely already paid for. That now the new
car owner is required to be in debt for 4-5 more years for a car payment. That most could have done better with just
keeping their original vehicle and maintaining the upkeep. However this may seem to be a disaster waiting to
happen. There is still more. The Consumer was also ripped off by the Auto Dealerships often times. For example,
every dealer in LA was selling the Ford Focus fully loaded, A/C, auto transmission, power windows, etc for $12,500
the month before the "cash for clunkers" program started. When "cash for clunkers" came along, the auto
dealerships stopped discounting these vehicles instead selling them at the list price of $15,500. The Consumer was
now paying $3000 more then a month earlier. (Honda, Toyota , and Kia played the same list price game that Ford
and Chevy did.
Not including the cost of the Tags Taxes Title Transfer fees etc the consumer has ended up paying 3350.00 more
than what that vehicle was selling for the year before. The governments lined its pocket through additional taxes to
the consumer. Kickbacks were given to the banks and lending companies and the poor consumer now at risk of
loosing their job with the unemployment numbers continuing to rise is faced with loosing the automobile they just
went in debt for. And the auto industry was able to dump off the bulk of cars that were sitting in the lots that the
consumer had no interest in purchasing the month before knowing they were at risk of being laid off and not being
aware of the tax burden they would be required to pay back to the Government for that free government program.
So, if you think that the American public were given the shaft by the “Cash for Clunkers” program
Just wait until we get health care with no additional costs over what most of us now pay for health insurance and the
best medical care in the world for the young and less benefits for those over 40 with the government deciding when
and how you should die to help limit increased healthcare premium costs with added tax to the government everytime
you receive benefits. Think that scheme might be designed by the same people who came up with Cash for
Wait until the Obama CAP and TAX Energy Bill, where you will be taxed everytime you turn a light on, purchase fuel,
purchase products made from petroleum or uses energy to produce them, shipping fee taxes and on and on....Get
the point yet?
Portions of this are from the AP News wire on Obama’s State of the Union Address. And “The Plan, The Scam, The
Man, Don't ya just love it when a plan comes together?”