An Obama Economics Primer

President Obama decided he would have a surprise town hall meeting in the sleepy little community of Cackti, Texas. He sent David Axlerod to check out the place and make arrangements for getting some “shovel-ready” projects on the front burner. Mr. Axlerod drove around the dusty deserted streets until he found the towns only hotel. Upon entering the lobby, he informed the owner that the President was coming to town and would require 15 rooms for three days. The owner, Mr. Jones said that he only had 15 rooms and that they would have to be fully paid in advance or else he could not afford to hold them. After all, you never new how many people might get off the 5:00 bus to take a breather and stay overnight. Mr. Axlerod placed a $100.00 bill on the counter and told Mr. Jones to hold the rooms for 20 minutes while he inspected the rooms and made sure they were acceptable. As soon as the President's man was upstairs, Mr. Jones snatched the bill and raced next door to pay his debt to the town butcher. The butcher drove to the edge of town and paid 100 dollars to the pig farmer. The pig farmer takes the $100.00 and runs it over to the Farmer’s Co-Op to pay towards his feed account. The guy at the Co-Op take the hundred dollars and hands it off to EllyMae the local prostitute who has had to start performing services on credit as times in Cacti are so bad. EllyMae races down the street and slaps the $100.00 bill on the hotel counter, paying towards her room charges. The proprietor nudges the bill back in its original place just as David Axlerod comes down the stairs, snaps the bill off the counter and storms out the door mumbling something about “I wouldn’t let an north Alabama hillbilly stay in this pigsty”! This is the Obama Stimulus Plan in a nutshell. It all looks good on paper, but where was the benefit? Did anyone really earn anything? Is anyone really better off? It’s a nifty little slight of hand trick and nothing more. Repairing pot holes in roads is not going to do anything for the economy. I heard it said yesterday, that these new ‘shovel-ready’ projects were going to be the greatest economic boom since the Eisenhower Interstate System. Building the road system certainly put a lot of people to work and was good for the economy. But, that was all paid for with taxpayer dollars. The real jump in the economy and the sharp upward spike in GNP, and creation of jobs came from that man who decided to put a Waffle House at every interchange in America. It came from the private businessmen who built the Holiday Inn’s, the restaurants and service stations, it all came from private investor’s putting there money and faith in good business practices. It came from common sense and sound capitalism. Wake up Mr. Obama, socialism and communism have never worked - Never!. Sooner or later you just run out of other people’s money. If you keep robbing Peter to pay Paul, one day Peter will catch up to you and break your legs.

CONSERVATISM vs. LIBERALISIM

History 101 (Crash course)

For those that don't know about history ... Here is a condensed version:

Humans originally existed as members of small bands of nomadic hunters/gatherers. They lived on deer in the mountains during the summer and would go to the coast and live on fish and lobster in the winter.

The two most important events in all of history were the invention of beer and the invention of the wheel. The wheel was invented to get man to the beer. These were the foundations of modern civilization and together were the catalyst for the splitting of humanity into two distinct subgroups:

1. Liberals (the gatherers)
2. Conservatives. (the hunters)

Once beer was discovered, it required grain and that was the beginning of agriculture. Neither the glass bottle nor aluminum can were invented yet, so while our early humans were sitting around waiting for them to be invented, they just stayed close to the brewery. That's how villages were formed.

Some men spent their days tracking and killing animals to B-B-Q at night while they were drinking beer. This was the beginning of what is known as the Conservative movement.

Other men who were weaker and less skilled at hunting learned to live off the Conservatives by showing up for the nightly B-B-Q's and doing the sewing, fetching, and hair dressing. This was the beginning of the Liberal movement.

Some of these liberal men eventually became known as girlie-men. Some noteworthy liberal achievements include the domestication of cats, the invention of group therapy, group hugs, and the concept of democratic voting to decide how to divide the meat and beer that conservatives provided.

Over the years Conservatives came to be symbolized by the largest, most powerful land animal on earth, the elephant. Liberals are symbolized by the jackass.

Modern liberals like imported beer (with lime added), but most prefer white wine or imported bottled water. They eat raw fish but like their beef well done. Sushi, tofu, and French food are standard liberal fare. Another interesting evolutionary side note: most of their women have higher testosterone levels than their men. Most government social workers, and employee's, personal injury lawyer's, journalists, dreamers in Hollywood and group therapists are liberals. Liberals invented the designated hitter rule because it wasn't fair to make the pitcher also bat.

Conservatives drink domestic beer, mostly Bud. They eat red meat and provide for their family & community. Conservatives are big-game hunters, rodeo cowboys, lumberjacks, construction workers, firemen, medical doctors, police officers, corporate executives, attorney’s, athletes, members of the military, airline pilots, teachers who believe in our founding fathers, and generally anyone who works productively. Conservatives who own companies hire other conservatives who want to work for a living.

Liberals produce little or nothing. They like to govern the producers and decide what to do with the production. Liberals believe Europeans are more enlightened than Americans. That is why most of the liberals remained in Europe when conservatives were coming to America . They crept in after the Wild West was tamed and created a business of trying to get something for nothing.

When a fishing boat comes to the dock, Liberals want to confiscate some of the fish to feed those who cannot fish. Conservatives want to hire people to fish and let them learn how to buy their own boat.

Here ends today's lesson in world history:

It should be noted that a Liberal may have a momentary urge to angrily respond to the above.

A Conservative will simply laugh and be so convinced of the absolute truth of this history that it will be forwarded immediately to other true believers and to more liberals just to tick them off.

And there you have it. Let your next action reveal your true self.

WE LIVE IN THE LAND OF THE FREE, ONLY BECAUSE OF THE BRAVE

Thanks to Ron V.

Note: This is NOT about Republicans and Democrats. It’s a distinction as to what you believe about the Constitution, National Defense, Personal Responsibility, Fiscal Responsibility, and most importantly Freedom!
Moderates are a melding of Republicans, Democrats, Libertarians, and all others that believe in the above ideas.

War was declared on the United States of America
2,724 days, 9 hours, 24 minutes and 12 seconds ago.

Conservatives want to end the war in victory for the people of Iraq, so they may also have personal and economic freedom.
Liberals choose to walk away, because it has just ‘taken too long”, AND there would be more money to spend on people in this country who want more hand-outs.

DIPLOMACY Or CAPITULATION??

China expresses relief over Clinton visit:
1 hour ago

BEIJING (AFP) — Hillary Clinton's trip to Beijing has come as a relief to China after the US secretary of state steered clear of human rights and other sensitive issues to focus on cooperation between the world powers.

Just before arriving in the Chinese capital, Clinton told reporters that while she would press concerns over human rights: “Those issues can’t interfere on the global economic crisis, the global climate change crisis and the security crisis.”

Hillary Clinton is redefining herself to some extent (again?). After going to Beijing in 1995 as first lady to deliver an impassioned speech on women’s rights, Mrs. Clinton has sidelined human rights on this trip, saying she does not want the topic to interfere with central issues like climate change or the economic crisis.

Here are the words of U.S. Secretary Of State Hillary Clinton in April of 2008 less than one year ago. "These events underscore why I believe the Bush administration has been wrong to downplay human rights in its policy towards China. ...

But this year we get this:

Clinton: Chinese 'human rights can't interfere' with other crises

Dissidents held during Clinton Beijing visit

Clinton focusses on selling US treasury bills to China

China still sure of US bonds: Clinton

Clinton says America and China must work together

Clinton: US to 'deepen and broaden relationship' with China


Ahhh, the Fresh Face of Diplomacy!

REGONOMICS vs OBAMANOMICS

With regards to:

Peter Ferrara
Director, Entitlement and Budget Policy, Institute for Policy Innovation

President Reagan’s economic recovery plan included four specific components on which he explicitly campaigned over and over and then implemented once elected.

These were:
1. Reductions in tax rates to restore incentives for economic growth. This consisted of, first, a reduction in the top income tax rate of 70% down to 50%, and then a 25% across the board reduction in income tax rates for everyone. The 1986 tax reform then reduced tax rates further, leaving just two rates, 28% and 15%. Reagan also cut corporate income tax rates and capital gains tax rates
2. Spending Reductions. The reductions included a $31 billion cut in spending in 1981, close to 5% of the federal budget then, or the equivalent of about $150 billion in spending cuts for the year in 2008. In constant dollars, non-defense discretionary spending declined by 14.4% from 1981 to 1982, and by 16.8% from 1981 to 1983. Moreover, in constant dollars, this non-defense discretionary spending never returned to its 1981 level for the rest of Reagan’s two terms! By 1988, this spending was still down 14.4% from its 1981 level in constant dollars. Even with the Reagan defense buildup, total federal spending declined from a high of 23.5% of GDP in 1983 to 21.3% in 1988 and 21.2% in 1989. That’s a real reduction in the size of government relative to the economy of 10%
3. Anti-inflation monetary policy to restrain money supply growth.
4. Deregulation. Reagan’s deregulation plan has now saved consumers an estimated $100 billion per year in lower prices. Reagan’s first executive order, in fact, eliminated price controls on oil and natural gas. Production soared, and the price of oil declined by over 50%.
The results were spectacular. These four components produced a 25-year economic boom from 1982 to 2007. In their new book, “The End of Prosperity,” Art Laffer and Steve Moore call the these years “the greatest period of wealth creation in the history of the planet.” They note that — adjusted for inflation– more wealth and income was created during this Reagan boom than in any other prior period in U.S. history. That’s right, than any other entire period dating from President George Washington all the way up to Ronald Reagan.
But Barack Obama is doing exactly the opposite on each of these four points:
–He is still promising tax rate increases, at least by letting the Bush tax cuts expire.
–He just passed the greatest increase in government spending in the history of the planet.
–He is promising massive increases in regulatory burdens, including global warming cap and trade regulation that would cost the economy another trillion dollars a year.
–The Fed is already furiously reinflating the money supply, sowing seeds of further havoc in the future.
Even the Obama tax cuts do not follow the Reagan economic recovery plan because they are not reductions in tax rates, which is what drives the incentives that govern the economy.
A reduction in tax rates increases incentives by allowing people to keep a higher percentage of what they earn from productive activity. But Obama’s tax cuts are all based on tax credits, which do nothing to improve incentives. They are really just the same as his government spending in terms of their effect on the economy, just like sending more welfare checks out to everyone.
At AmericanSolutions.com, former House Speaker Newt Gingrich has proposed an updated version of the Reagan economic recovery program for today. It includes, among other items, a reduction in the federal corporate income tax rate from 35% to the 12.5% rate that over the past 20 years has lifted the standard of living in Ireland from the bottom of the EU to the top. It would eliminate the capital gains tax to match rates in China, Singapore, and other international competitors — a move that would entice capital investment from the world over to America. It would provide middle class tax relief by reducing the 25% income tax bracket to 15%, establishing a flat rate tax of 15% for close to 90% of American workers. Gingrich also proposes that a cut in the payroll tax by 50% for 2 years. He also proposes that our government work to control government spending to balance the budget, something Gingrich himself achieved when he was Speaker of the House. Under his plan, the United States would also adopt a real, comprehensive energy program that would allow production of domestic U.S. oil and natural gas, as well as nuclear power, clean coal, ethanol, and renewable fuels.
Obama keeps saying he is only interested in what works, not ideology. So why doesn’t he include any of the above components that have a proven track record of effectiveness? Why is our president ignoring what works and insisting on embracing an ideology that will simply expand big government?

Why indeed?

John Deere Wins New Contract!!!!

Despite the cozy relationship that this Administration has with Caterpillar it has awarded it's first agricultural contract for new machinery to rival John Deere.
In his promise to "work smart and make government work smart", President Obama has chosen John Deere to build new machinery needed for the Tax Stimulus Plan.
"We have had a lot of proposals that involved new design and manufacturing, that would only push up the cost of the equipment needed. The good folks at John Deere have come up with a plan to inexpensively modify an old piece of equipment with readily available parts. This is American ingenuity at work, and the kind of forward thinking all of us need to be doing!"
When asked what he thought of the first test run with the prototype the President stated:
"Actually I just kind of teared up looking at it".

John Deere has renamed it's 1941 Manure and Compost Spreader and promised to retro fit all existing equipment as a way of helping this Administration "Work Smart for the American People".
What we will see with the Tax Stimulus Plan;

Workers who make less than $75,000 a year (or married couples who make $150,000 or less) will receive $400 tax credits in 2009 and 2010. Those who make more will receive reduced amounts. But instead of mailing out checks, as the Bush administration did with its stimulus plan last year, the government will withhold a little less -- leaving average workers with perhaps $8 extra per week.

Health insurance subsidies for the unemployed could also have a direct effect, but even with the federal help many may find it hard to afford continued coverage. Workers who lose their jobs must arrange with their employers to continue the coverage and must pay the premiums themselves -- a hefty outlay even with the government now picking up 65% of the cost for nine months for individuals earning up to $125,000 a year ($250,000 for couples). Of course we have already extended the length of time that benefits can be collected.

The federal government will deliver $54 billion in aid to cash-strapped states, with some of the money available to prop up state budgets, help maintain services and keep employees on the job.

Other money could help keep teachers and day-care workers on the payroll. That alone could save or create hundreds of thousands of jobs nationwide, Democrats say.

Counties, cities and municipalities that receive a chunk of stimulus money are expected to green-light so-called shovel-ready projects, using workers and equipment that otherwise might sit idle. The U.S. Conference of Mayors has projected that such projects could yield 1.6 million jobs by the end of next year.

It is pretty obvious that 'creating and saving' jobs means government jobs!

This is known in the business world as more overhead.

A SHOUT IN THE WILDERNESS

One Sunday as I was napping on the back porch, I heard a bunch of
screaming out in the woods behind the house. Hmm. What could that
be about I wonder? Stepping into the kitchen I picked up my .22 rifle
and headed out to investigate. About two miles into the trees I came to the little pond where I sometimes go to catch bream and catfish.
There was a man walking back and forth with two buckets of water, dipping out of the deep end, walking the length of the pond and pouring into the shallow end of the small pond. Each time he poured in a bucket of water he would cuss, yell and throw the buckets down
In frustration.
“Excuse me sir, what are you doing out here and why all the noise on beautiful day like this”?
The stranger looked at me as if I were crazy and said “I am here to fix this pond".
“But sir, there is nothing wrong with the pond! It’s perfect, it’s full of catfish, bream and is spring fed by the aquifer”.
“Nothing wrong with it? Nothing wrong with it? Are you blind mister”? “Sure, this is end is nice, but look at the other end, it’s shallow and muddy and has no vegetation like this end. This pond is out of balance and I am here to make it nice on both ends and in the middle as well”! “But, every time I take water out of the deep end and pour it into the shallow end, it all just levels out again, I’m stumped, but I know I can come up with the solution, I just know it”!
“But sir, you are tramping all over the frog habitat on the shallow end of the pond! If you keep this up, the frogs will die, the fish will die and the pond will stagnate”!
“Now look fellow! I know it may not be a perfect plan, but it’s the one I came up with. I happen to be in charge here. I’m from the government and I’m here to help you”! By the way mister, is that gun loaded? Do you have a permit for it? I can’t believe we have people walking around in the woods with a loaded gun! What is your name”?
"This is another problem we are going to have to fix, just as soon as I get done with this pond"!

Obama sets executive pay limits

Obama Lays Out Limits on Executive Pay

"For top executives to award themselves these kinds of compensation packages in the midst of this economic crisis is not only in bad taste — it’s a bad strategy — and I will not tolerate it as President. We’re going to be demanding some restraint in exchange for federal aid — so that when firms seek new federal dollars, we won’t find them up to the same old tricks".
--Barack Obama

The plan, which represents the most aggressive assault on executive pay by federal officials, includes salary caps of $500,000 for top executives at firms that accept "extraordinary assistance" from the government.

Sounds good doesn’t it? Let’s punish those bad boys and make ‘em
Hurt! But is there any teeth to this pay cap or is it just empty rhetoric?

Let’s look at how the new plan will affect James Owens, one of the members of President Obama’s Economic Recovery Team.

"The board will be chaired by former Federal Reserve Chairman Paul Volcker. Its members include Jeffrey Immelt, chief executive of General Electric, and James Owens, chief executive of Caterpillar. Both companies have strong sales around the world, though both are coping with hard times amid the slowing global economy; Caterpillar said last month that it would cut 20,000 jobs".

According to Forbes, this is James Owens compensation package for
2007. Now personally, I don’t care how much any CEO or Executive
Makes. I think that is between them and the shareholders. But, just for the heck of it, let’s see how this ‘salary cap’ will affect him.

$ 1,512,504.00 Salary
$ 300,000.00 Bonus
$ 0.00 Other Annual Compensation
$ 0.00 Long term incentive plan payouts
$ 918,626.00 Restricted stock awards
$ 0.00 Security underlying options
$ 221,307.00 All other compensation
$ 7,136,911.00 Option awards $
$ 4,442,998.00 Non-equity incentive plan compensation
$ 2,575,395.00 Change in pension value and nonqualified deferred
compensation earnings
$17,107,741.00 Total Compensation

So at first glance, it appears that Mr. Owens would lose $1,012,504.00.
Or would he? Might he just put oh, lets say $200,000 into his bonus plan and $800,000
into the item labeled 'Other Annual Compensation'?
Even if he did take the 1 million dollar pay cut, does it really hurt him? Of course not. CEO
salaries are nothing more than 'walking around money, for many of them.
I am all for CHANGE and a better method of doing things,but I firmly believe that I don't appreciate being misled by meaningless DoubleSpeak.

Where's the beef?

Air Force One to Williamsburg??

Obama takes first Air Force One trip to Williamsburg

Let me see if I have this correct. Obama takes his first Air Force One trip to Williamsburg?
Williamsburg, Virginia? The town that is 152 miles from Washington, DC?
Did he just need to take a ride and try out his new 'wheels'?

Are you kidding me?

Has anyone thought to calculate what it cost to fly Marine Corp One to Andrews Air Force Base?
Then load up on a 4,000 square foot flying office and travel to Virginia? (152 miles)
How many military people and staff did this require?
Did the C-141 cargo jet that carries the Presidential Limo and staff cars make the trip as well?
Was the Air Force AWACS plane flying overhead?
Was the military and air traffic control on special alert because the President was in the air?
How many millions did this cost?

Are you kidding me?

Is this the same person who criticized the ‘Big Three’ CEO’s for taking a corporate jet to Washington from Detroit?
Is this the President that is calling for personal responsibility and a ‘new way’ of doing business?
Is this the President who has promised accountability and transparency?

Is this the President who is asking for a Trillion dollar spending plan?

Are you kidding me?

Are you kidding me?

Lets just hope he doesn’t take it to Camp David next week!

...Bill

A plea to Congress and a Fractured Fable

THE SILVER SCREW

Once upon a time, a young lad was born without a belly button. In its place was a silver screw. All the doctors told his mother that there was nothing they could do.
Like it or not, he was stuck with it . . . He was screwed.
All the years of growing up were real tough on him, as all who saw the screw made fun of him. He avoided leaving his house . . . And thus, never mde any friends.
One day, a mysterious stranger saw his belly and told him of a swami in Tibet who could get rid of the screw for him. He was thrilled. The next day, he took all of his life's savings and bought a ticket to Nepal .
After several days of climbing up steep cliffs, he came upon a giant monastery. The swami knew exactly why he had come. The screwy guy was told to sleep in the highest tower of the monastery and the following day when he awoke, the screw would have been removed. The man immediately went to the room and fell asleep.
During the night while he slept, a purple fog floated in an open window. In the mist floated a solid silver screwdriver. In just moments, the screwdriver removed the screw and disappeared out the window.
The next morning when the man awoke, he saw the silver screw laying on the pillow next to him. Reaching down, he felt his navel, and there was no screw there! Jubilant, he leaped out of bed . . . . And his butt fell off.
The moral to this is:
'Don't screw around with things you don't understand -- You could lose your ass.'
---- Congress is noted for screwing around with things they don't understand - like the economy. That's why we are all losing our asses!

....Padroo

Personal Tax Stimulus Plan

2009 STIMULUS PLAN

(FAX OR MAIL TO YOUR CONGRESSMAN)


The Honorable ______________________
https://writerep.house.gov/writerep/welcome.shtml

Dear Sir/Madam

As an American tax payer of long standing, I would like to apply for
my own personal bail out program.

I request $1,000,000.00 to be spent over the next 10 years to bring
our economy back to life.

I pledge to use this money exclusively in the following manner.

1. Paying off my home mortgage and all personal bills.

2. Buying new cars, and boats as needed.

3. Travel at will to all possible vacation spots in the United States, only.

4. Diner, dancing, generous tipping and events at the above locations.

5. Golfing, fishing and other recreational passtimes as suits me.

6. Investing 10% up front in a long term mutual fund.

If we can do this for every taxpayer in the U.S. we will all retire and let
others who have not been able to find jobs in their lives take over the
work load.

The purchases and investments will get our troubled economy back on
track and solve the unemployment crisis.


ECONOMIC PROBLEMS SOLVED!!

SIMPLE!