Wednesday, December 2, 2009
How Barack Obama intends to dismantle the US economy
It was learned recently that the Obama Administration, when compared to other Administrations dating back to 1900, is a bit shy of “private sector” experience. When I say a “bit shy” I mean substantially shy.
The graph shows this dynamic pretty clearly and overall it also exposes the Democrats as anti-business as well (when compared to their Republican counterparts), historically.
The highest percentage of “private sector” experience is in the Eisenhower, Nixon, Reagan and Bush (1 &2), all Republican Administrations. The lowest percentage of “private sector” is Kennedy, Carter and Obama, all Democrat Administrations.
The Obama administration has the lowest amount in the history of the record keeping. Of the individuals that do have private sector experience in his administration, Lawrence Summers is at the top. This is the man that handles the “purse strings” of the Treasury of the United States. He is also the most destructive. When you look at his success/failure in all things finance, you find this:
As Secretary of the Treasury for the last 1 ½ years (7/99 – 1/01) under the Clinton Administration (also one of the lowest with “private sector” experience in his cabinet) Summers had the reigns when the US Economy dove into recession.
As President of Harvard University (7/01 – 6/06) Summers ignored financial sector warning signs from advisors resulting in a $1.8 billion dollar loss of cash/capital that essentially crippled the University.
Ironically, in 2009, Summers' (a Democrat) stated in his prominent findings in labor economics, that unemployment insurance and welfare payments are a major contributor to unemployment, and therefore should be scaled back.”
In spite of the failures of Summers at the Federal and private sector levels he will be leading the December 2nd “Jobs Summit”.
Finally, in addition to a serious lack of private sector experience in those around him and the failures of Obama’s main financial guy the summit will exclude the national “Chamber of Commerce”.
Some of the leading ideas under discussion include:
• offering a payroll tax holiday, which would temporarily suspend the 12.4% tax on workers' first $106,800 of wages;
• creating a new jobs hiring credit;
• giving more money to states and localities to close budget deficits. These shortfalls could cost 900,000 jobs in 2010 alone, according to one think tank;
• and offering public-service employment.
One measure that is more likely to be enacted is an extension of unemployment benefits. One million people could lose unemployment benefits in January if Congress doesn't lengthen the deadline to apply for federal aid beyond Dec. 31, according to the National Employment Law Center.
It appears that the Summit is a sham and is intended to give the impression that the Administration is working hard on finding ways to increase job creation. The problem is you cannot create jobs without tax cuts and incentives. Creating Government jobs is not providing public sector expansion, but then again this administration hates the public sector and that reality can be seen in the serious lack of officials that came from there in the first place.