Obama’s Campaign Strategy – The Blame game!

By: Richard H. Frank

The Obama Administration’s policies having proven to be classic failures, the President must switch to the old stand-by tactic of blaming everyone else, including his own party for failing to support his agenda. His position will not focus on how the Democratic-controlled Congress is responsible for creating a $5.2 trillion deficit between 2007 and 2010 and that his stimulus program to spend $787 billion followed by another proposed $447 billion has nothing to do with the increased deficit. His continued lies to the American public that his latest proposals are fully paid for are wearing thin with the very people who elected him to office. He continues to demagogue the Republican- controlled House of Representatives as caring only for the rich that do not pay their fair share of taxes and how he will not place the burden of the economic dilemma on the backs of the middle class and senior citizens.

His contention that he will veto any legislation that does not include new revenues from the richest Americans in the form of higher taxes is in direct opposition to his pledge not to raise taxes on the middle class in America. Likewise his “Grand Bargain” which he personally blames Speaker Boehner for rejecting lacks any detail as to how he will cut spending by $2 for every $1 of new revenue generated through closing tax loop holes and tax increases on the rich.

What is even more astonishing is that he expects the public to sign on to the class warfare he creates by stating that Warren Buffet pays a lower tax rate than does his secretary. He fails to acknowledge the fact that Buffet’s tax rate is from capital gains that are taxed at 15% while his secretary who allegedly earns $50,000 per year is taxed on income at the rate of approximately 25%. “Just math” he says as he stands and proclaims supposed facts before the American public. Notwithstanding the fact that Mr Buffet has already paid income tax on the money he invested when he first earned it, lets examine the math. If Mr. Buffet’s secretary paid 25% on her $50,000 salary she would pay the government approximately $12,000. If Mr. Buffet on the other hand achieved $50 million as the President contends, he would have paid $7, 500,000 in taxes not to mention the hundreds, or possibly thousands, of jobs his investment has created and sustained. This is the math Mr. President. I wish you could prove the same for the $787 billion in wasted stimulus dollars you spent.

As the campaign takes shape we hear the old refrain of blaming Bush for the economic woes of the country. Two wars unpaid for, a prescription drug program unpaid for and tax cuts for the rich that crippled the flow of revenue to the Federal Government.  Now his claim is that stimulus was not enough and we need to spend more money that we do not have to fix the economy coupled with taxing those greedy rich people and companies that do not pay their fair share. He knows full well that Congress will not pass his latest attempt at redistribution of wealth in the form of “The Americans Jobs Act” which he insists must be passed immediately. Even the Senate leader Harry Reid will not bring the bill to the floor until some time in October if even then. This is all in the plan for placing the President above the fray and blaming Congress for his failures as he deflects any responsibility from himself to others for failures of his policies and ideological agenda.

He insists that Washington must live within its means and in order to do so must reform the tax code, Medicare and Medicaid; this from a party that has failed to pass a budget for the last two years.   He continues to scare senior citizens with cuts to their benefits many of which are hidden in his signature legislation aptly dubbed “Obamacare.” Just wait until the increases in premiums kicks in for seniors that subscribe to their part “B” benefits. These increases will be more than offset by cost of living increases forecast in the near future. Lastly, he stated that the government should ask all companies that received bailout money from the government to repay their debt. I thought this was explicit in the original bailout agreements. Just how much is still owed by these large companies to the American taxpayers?

But then again I guess the American taxpayers should just bend over and grab our ankles and kiss the money we “invested” in the New General Motors, Chrysler and solar companies like Solyndra good-bye.

To quote Barack Obama, his speeches have all become “words just words” and can fall into the category of more campaign rhetoric called the “Blame Game”.

Big Government Tinkers with the Economy: Americans Bear the Cost and Pain

by Richard H. Frank

What will it take for Barack Obama and Washington politicians to admit the Government does not and cannot create jobs or wealth for our nation?  Every day we hear of another scandal involving some Government-administered program.

Consider the accomplishments of the following Government programs:

  • TARP (troubled asset relief program)
  • Obamacare (Affordable Health Care Act)
  • Stimulus 1 ($787 billion in Government spending for shovel-ready projects)
  • American Jobs Act ($447 billion for infrastructure projects)

TARP allegedly saved America’s financial system.  Banks and insurance companies were given billions of dollars to bail them out of bad investments and the chance to take writeoffs and amend their balance sheets.  Addition billions of dollars were provided to assist homeowners in avoiding foreclosure by modifying their mortgages in an attempt to save their homes.  What happened is that the banks took the money and have elected to withhold the funds from the public in the form of loans, mortgage modifications and encouraging investment in the private sector.

The Government takeover of General Motors and the claim that Obama single-handedly saved America’s automotive industry is another fabrication for the campaign trail in 2012.

The truth is that the American taxpayer can kiss the $56 billion in Government investment in the New  General Motors goodbye forever. Obama will claim $20 billion has been repaid through the sale of Government shares during the first public offering leaving a mere $26 billion to be repaid.  This does not take into account the tax relief of $45 billion granted to the Corporation.  In order to recover the remaining investment, Government shares would have to be sold at $55/share.  Today’s market price stands at $22.32/share with  the year-to-date stock price performance down 39.8%.

Also take notice of General Motors financial performance.  The press releases tout the massive improvement in sales and profits year over year.  The August 4, 2011 earnings report trumpets a profit of $3.0 billion on sales of $39.4 billion.  As an investor I would be hard pressed to buy shares in a company having return on sales of .7% let alone pay $55/share.

The latest example of waste deals with the green energy initiative by the Obama Administration.  The solar panel company Solyndra managed to burn through $535 million taxpayer dollars in just over one year.  Of course, no one in our Federal Government is willing to accept responsibility for oversight of that “investment” even though the Department of Energy held a seat on the company Board.

As for “Obamacare,” the bill that had to be passed to find out what was in it, we are finding out every prediction of forcing companies to drop insurance, cost increases and rationing of care are coming to pass.  When Congressman Wilson said Obama lied during his state of the Union speech, he was correct.  There are now 50 million uninsured because companies are finding it cheaper to drop full-time employees with insurance coverage in favor of keeping part-time workers onboard.

Stimulus 1 turned out to be nothing more than a payoff to big unions in the form of paying the states to increase or keep current Government-funded positions in union represented functions.  The result was Obama’s claim that he had saved or created over 3 million jobs.  Conversely, the private sector shed over 2.5 million jobs during the same period.  Jobs that created value and paid taxes to support the Government jobs Obama takes credit for creating.

As for the “American Jobs Act” it is just more of the same.  An attempt to impose taxes on the “rich” (people earning over $200k/year) and redistribute wealth instead of creating an environment for free market economic growth. When Government is allowed to pick winners and losers the American public is the ultimate loser!

Every economic indicator for growth is negative.  Weekly claims for first time unemployment benefits continue in excess of 400,000. Energy prices rise and inflate the price of every commodity we consume.  Bank foreclosures skyrocket while real estate prices continue to plunge.

Yet, Barack Obama can only see the 2012 election and because his record of accomplishments is virtually non-existent, must turn to demonizing Congress as obstructive to his programs as his only path to re-election.

America will have to endure the albatross of Barack Obama and his Administration for the next 14 months before he can be voted out of office and returned to his role as community organizer-in-chief, living off taxpayer-funded pension the rest of his life.

Obama’s “American Jobs Act II” – More Government Spending !

by: Richard H. Frank

Watching and listening to the President’s speech to a joint session of Congress, where he once again attempted to assume the guise of a leader, would have been laughable were the state of our economy not so serious.  It must have pained Obama to acquiesce to Republican ideas for tax cuts as part of his continued attempt to introduce $447 billion dollars in new stimulus spending to Congress and a skeptical electorate.  Nonetheless, he had the gall to stand before the nation and insist that continuing his failed policies would provide the “jolt” necessary to jump-start the economy.

Further he insisted the new legislation would be fully paid for through “undefined” yet to be determined spending cuts and closing of tax loopholes in the existing tax code. Mr. President, give me a break, please!  How stupid do you think the American people are?  Since when has the Federal Government found a dollar of savings and not turned around and spent two?

As for charging the Congressional “Super Committee” the task to find an additional half trillion in cuts in addition to their current assignment to find $1.3 trillion in reductions, I can’t help but wonder what you are smoking.

After listening to the outline of Obama’s “American Jobs Act,” I must ask “Is he just stupid or so ideologically committed to destroying the free market system that he is blind to real solutions when they are placed in front of him?”  He gives lip service to cutting the corporate tax rate and removing obstacles to small business who create the jobs.  He then totally ignores taking the barriers away from our domestic energy producing companies when they attempt to make our Nation energy independent.

His statement using  mercury from fluorescent lamps  as an example of the regulations that he would never relent upon to protect our children from poisoning shows just how naive  he really is.  No one in business wishes to place individuals in jeopardy nor destroy the environment by elimination of all regulations.  They just want the barriers to doing business removed that stifle innovation, development and job creation.

Mr. President, how about paying for your $447 billion dollar boondoggles through elimination of Federal Government agencies that add no value to the economy and allow the states to assume those responsibilities.  Additionally, cancel your   campaign to sell this monstrosity of a Bill by travelling across America  at the taxpayer’s expensive and also promoting your Presidency under the guise of selling your legislation.  Your political donors can pay for your Presidential election campaign, not the rest of us.

Mitt Romney said it best when describing the President’s ability to fix our economy when he stated “Obama doesn’t have a clue…”

The best thing Obama could have done during his speech to the joint session this past Thursday would have been to follow the example of Lyndon Johnson who said “I shall not seek, nor will I accept the nomination of my party to run for President of the United States of America.”  That announcement would be the jolt needed to jump-start our economy.