Talk about corruption -- or is it just pure ignorance of economics. I think it is a combination of ignorance and corruption .. what else? In 50 years - this administration will be the case study for High School Textbooks. Teapot Dome was child's play.
1. Cap and Trade - A tax program that Obama's supporters blindly believe will apply only to the "big oil and big utility" companies that use carbon based energy. Duh? The beneficiaries here are a. Goldman Sachs (you know - the company that the AIG bailout (under the Pelosi/Obama Congress) saved? and the company from which nearly all of Obama's financial commissars come from?) that has the trade concession on the assigned carbon units and b. Al Gore - who has enormous positions in the so-called carbon neutral "new energy" sources. The losers? The effective rise in energy costs across the board will destroy what little income the poor have at this point and put them further in the care of the government which keeps losing real tax revenue as tax paying businesses stagnate. The government can only pay for the new welfare overload by printing more money (more inflation).
2. Health Care Reform: A competitive but clearly Byzantine mix of doctors, hospitals, patients and insurance choices will be replaced by a NON competitive and clearly Byzantine mix of doctors, hospitals, patients and only ONE insurance choice. The only change? "Competition" is replaced with "no competition". What needed change? The word "Byzantine" for "efficient".
How to pay for this shift to non-competitive Government Care? Tax the leading providers of jobs in America - successful small business owners with a 15% increase in income tax.
Result? a. One million lost jobs mostly in the service industries that depend on part time and tip based employees. b. Rise in the cost of dining out and entertainment by as much as 50% to pay for the forced insurance on the remaining employees in these industries. c.Ultimately the poor will pay the costs anyway as fast food prices double and jobs are lost. (Short list - this list of lost jobs and increased costs that the poor will pay for goes into every facet of business and life).
3. Government Motors: Rather than allow the automobile companies go bankrupt and reorganize without the "unions" - Political payback was put into play. Where "TARP" was applied (Ford did not take it) - the Government became the primary owner and the "UNION BOSSES" became secondary owners. The retirees and pension funds depending on the Bonds loaned to GM and Chrysler were stabbed in the back to support the Union Bosses in the largest political payback from a presidential candidate in the history of America. The union bosses bought and paid for this president and the investment went quite well. Obama is the best president their money could buy. The Michigan Auto industry was destroyed by the UNIONS and government regulation over 40 years of poor policy and poor government strategy (state and national) that led to poor choices by management. This LOSING COMBINATION is now rewarded by the political payback and Detroit, Cleveland and Gary continue to lose jobs while they support their presidential choice of continued devastation - Obama.
These are just THREE of the many scandalous actions the Obama administration pursues. What is common to all is that the people he claims to help with his programs and policies are the very people who will be devastated with the "unintended consequences"( or is it INTENDED?). The people who voted for Obama and his supportive Democrat Congress are unable and/or unwilling to explore the real economic and social damage that will occur from the unabashed pursuit of money and power.
(copyright 2009 - Vic Campbell)