Category Archives: Economy

Employee Free Choice Act Is Democrats' Quid Pro Quo

Among the first items on President-elect Obama’s agenda will be to pay back labor unions for their generous campaign contributions in the name of the Employee Free Choice Act. As if government is not already involved in all kinds of things of a socialist nature that it should not be involved in, but is, Democrats in Washington, if not by executive order itself by our new President, will resume the effort to boost labor union membership by enacting new legislation. Since when does boosting labor unions membership become a responsibility of the government? The easy answer to that is to follow the money. If you do that then you’ll know why the bill was sponsored solely by Democrats including Barack Obama.

The bill was mis-named on purpose. Had it been named correctly, it would have been named the Employee Forced Choice Act. The meat of the bill will remove the private ballot in union organizing and replace it with a public one. It is more than a little ironic that Democrats would have such contempt for a private ballot when every other kind of vote Americans participate in is a private one.

And be prepared also for the Left to attach this bill to their favorite political tact, class warfare. Last year, Sen. Hillary Clinton was speaking for this bill and said that it is for ‘the middle class’ because, she asserts, labor union members are middle class. Although Democrats purport to support ‘the working people,’ what they really support are labor unions.

Didn’t we just learn that small businesses create something like 80 percent of jobs in this country, and that most of these small business owners and their employees are ‘middle class?’ And that’s why Obama wants a ‘middle class’ tax cut while raising taxes on ‘the rich.’

Let’s examine Barack Obama’s economic theory. He wants to increase minimum wage to over $9/hr. He wants to increase taxes on small businesses with incomes higher than $120,000. He wants to enable labor unions to unionize small businesses. Does this sound like a pro-growth economic policy to you? It sounds like disaster that will only worsen our economic woes.

In 1983, 20 percent of workers in the U.S. were union workers. In 2007 that percentage was 12.1 percent, up .1 percent from 2006.

Much of last year’s growth came in the West. California’s rate of union membership rose one percentage point, to 16.7 percent, an increase of more than 200,000 members. Nevada showed an increase of 15,000 union members, reflecting the organization of casino and construction workers.

As you might expect, union membership in the Midwest decreased.

In the Midwest, manufacturing job losses reduced union membership. Michigan lost 23,000 union members. The largest decrease came in Illinois, where union rolls dropped 89,000. Ben Zipperer, research associate at the Center for Economic Policy Research, said the manufacturing sector — long the stronghold of U.S. unions — is being supplanted by the construction and private health-care fields, where union membership is growing.

The reason union membership has declined over the years is that employers have negated the need for them by paying more and offering benefits that employees want, without them having to pay dues to a union. This so-called Card Check legislation is a mistake for a number of reasons. Not the least of which is that it is not the government’s job to increase labor union membership. The other reason is the negative impact on business that come with unions in vastly increased overhead and payroll expense.

Look what labor unions do the the auto industry. Did you know that . . .

At a time when the average American company requires workers to pay more than $2,000 a year toward family health insurance premiums, the auto industry is among the 4% of employers that offer free family health coverage.

And these figures are from 2005, it is only worse now . . .

The cost of providing health care adds from $1,100 to $1,500 to the cost of each of the 4.65 million vehicles GM sold last year, according to various calculations. GM expects to spend at least $5.6 billion on health care this year, more than it spent on advertising last year.

Granted that it was the management of these automakers that agreed to such extravagant benefits, at the threat of a strike, but it doesn’t take a rocket scientist to see how labor unions can put not only the auto industry, but any industry at a competitive disadvantage, including small businesses that need all the help they can get. If unions go away, no one suffers. If small businesses go away, everyone suffers.

related links: Union Membership Up Slightly in 2007 | Obama renews promise on NAFTA, ‘card check’ | Employee Free Choice Act, Part Two

Obama Campaign’s Illusion On Coal Power Plants

The Obama campaign is responding to posts like this ‘How Obama Supports The Coal Industry‘ by dismissing it as ‘“right wing blogs” that “wildly edited to take it out of context.”’ They go further to say that Barack actually said the opposite of what he actually said. ?? OK, so they are lying and the dumb masses will accept it rather than check it out for themselves. Consider this, have you ever known anyone, let alone a presidential candidate, that needed so many people to explain what he says? Or rather, to explain away what he says? Their problem is simple. When he actually says what he means, his surrogates come out to say that no, that’s not what he means. The whole Obama campaign has been an illusion in so many ways. But I digress.

To this subject, the Obama campaign added ‘“In the full interview Obama actually praises coal and says that the idea of eliminating coal is ‘an illusion,’” the campaign explained.’ They are word wizards for sure. In fact, Obama did praise coal (as a fossil fuel) as being responsible for about half of the electricity production in the country. He did not praise coal power plants that use it, and certainly not the building of more coal power generating plants. In fact, as far as coal power plants go, he wants to ‘take it off the table.’

Here are his words, not taken out of context.

What I have said is that for us to take coal off the table as an ideological matter, as opposed to saying if technology allows us to use coal in a clean way, we should pursue it.

That is a statement, ‘for us to take coal off the table.’ His position is to take coal power plants off the table. That was not a conditional statement to use coal power plants in a cleaner way. He intends to NOT use it. He intends for the ‘caps and trade system’ to penalize any company that wants to build a coal-fired power plant, and if they are stupid enough to try it and risk bankruptcy, through fines that he defines as a ‘huge sum’ that he says ‘will also generate billions of dollars that we can invest in solar, wind, biodiesel, and other alternative energy approaches.’

Where am I missing the part that says, like his campaign claims, that the idea of eliminating coal is an illusion?

But don’t take my word for it. Here is the entire transcript from the above video. Then have the courage to call a spade a spade and recognize that the only illusion here is the Obama campaign’s spin on Obama’s own words.

Barack Obama: I voted against the Clear Skies Bill. In fact, I was the deciding vote. Despite the fact that I’m a coal state. And that half my state thought that I had thoroughly betrayed them. Because I think clean air is critical and global warming is critical. But this notion of no coal, I think, is an illusion. Because the fact of the matter is is that right now we are getting a lot of our energy from coal. And China is building a coal-powered plant once a week. So what we have to do then is figure out how can we use coal without emitting greenhouse gases and carbon. And how can we sequester that carbon and capture it. If we can’t, then we’re gonna still be working on alternatives. But…let me sort of describe my overall policy. What I’ve said is that we would put a cap and trade policy in place that is as aggressive if not more aggressive than anyone out there. I was the first call for 100% auction on the cap and trade system. Which means that every unit of carbon or greenhouse gases that was emitted would be charged to the polluter. That will create a market in which whatever technologies are out there that are being presented, whatever power plants are being built, they would have to meet the rigors of that market. And the ratcheted down caps that are imposed every year. So if somebody wants to build a coal-powered plant, they can. It’s just that it will bankrupt them because they’re going to be charged a huge sum for all that greenhouse gas that’s being emitted. That will also generate billions of dollars that we can invest in solar, wind, biodiesel, and other alternative energy approaches. The only thing that I’ve said with respect to coal–I haven’t been some coal booster. What I have said is that for us to take coal off the table as a ideological matter, as opposed to saying if technology allows us to use coal in a clean way, we should pursue it. That I think is the right approach. The same with respect to nuclear. Right now, we don’t know how to store nuclear waste wisely and we don’t know how to deal with some of the safety issues that remain. And so it’s wildly expensive to pursue nuclear energy. But I tell you what, if we could figure out how to store it safely, then I think most of us would say that might be a pretty good deal. The point is, if we set rigorous standards for the allowable emissions, then we can allow the market to determine and technology and entrepreneurs to pursue, what the best approach is to take, as opposed to us saying at the outset, here are the winners that we’re picking and maybe we pick wrong and maybe we pick right.

related link:A ‘Dirty’ Fight

Got Energy? Then Pass The Hat

It is bad enough that the United States spends over $700 billion per year on oil resources from the Middle East and elsewhere, when we have enough resources of our own which could be developed right here in the United States, creating jobs all over the country in the process.

The confluence of two problems, energy dependency and the financial market meltdown, seem to have the world looking to the Middle East and Saudi Arabia for help. President Bush took a trip to Saudi Arabia with his hand out for more production and lower oil prices. Now British Prime Minister Gordon Brown goes there looking for money for the International Monetary Fund’s ‘bailout reserves.’

British Prime Minister Gordon Brown said Sunday he is confident that Saudi Arabia will contribute to the International Monetary Fund’s bailout reserves after he promised business leaders in the Gulf that they would have a say in any future new world economic order.

When you are the one in control of the oil spigot, with cash reserves that are as large as your oil reserves, it is not hard to imagine, nor is it surprising, to see this kind of attitude ‘from those that don’t like us very much.’

A senior British government source, speaking on condition of anonymity because he was not authorized to comment, said that during talks the Saudis had been concerned about becoming a “milk cow” to prop up “basket case” economies in other parts of the world.

Both the energy and economic ‘crises’ can be solved by restoring common sense to both. By using our own resources and by paying attention to sound business practices by not offering mortgages to people that have no ability to pay. Those people are called ‘renters.’ In the meantime, with help from Saudi Arabia or not, the world will have to pay the consequences of our bad decisions.

On Tuesday, Nov 4, Americans can choose which of the two candidates, which of two parties, have the answer to today’s problems. Or at least an inclination as to which way to proceed. The choice seems pretty clear to me. One party wants to cut oil dependency by a small percentage, the other party wants to eliminate it. One party wants to make home ownership a ‘right,’ and the other wants to enable every citizen to get their own home based on their own efforts.

Socialism is easy, the government makes decisions for us, and innovation and productivity are depressed. Freedom is hard, you have to make your own decisions, innovation, productivity and the rewards that come with it are unlimited.

related link: Brown expects Saudi financial help

Obama Attacking Joe And Middle Class Americans

Isn’t it amazing how the media is all over ‘Joe the plumber?’ Within 24 hours, we know all about this man’s personal and professional business. And for over two years now, the media is still not motivated to tell us about Barack Obama’s alliances with people that hate America, and his proclivity for supporting directions in education that promote socialism. Then there’s his working for and with ACORN, and so much more.

It is more than an little ironic that Obama and his willing accomplices in the media chose to attack this hard working middle class guy, a union member no less, that hopes to one day buy the plumbing business he currently works for. ‘Joe the plumber’ is of the kind of people that Democrats purport to champion. Working hard to get ahead and having some financial difficulty, as the media is so quick to point out, but trying to overcome the obstacles he faces. What has Obama’s hair standing up about ‘Joe’ is that Joe isn’t looking for the government to bail him out. He is wondering whether the government is going to put more obstacles in his way. This episode really shines the light on how disingenuous the Democrat platform is. Which is more about maintaining a middle-class and ‘poor’ than helping them rise above it.

The Democrat party of today is the class-warfare party, and Barack Obama’s reaction to Joe personifies it. Barack came out and said what his vision for America is. That the government should spread the wealth, which means taking from the haves to give to the have-nots. ‘A government that robs from Peter to pay Paul can always count on the support of Paul,’ George Bernard Shaw.

Convincing people how harmful this Democrat doctrine is to this country remains conservatives’ biggest challenge. The amount and scope of education necessary to accomplish that begins in our elementary schools and goes right up to the college level. It is not a coincidence that people like Obama and William Ayers want to start socialistic indoctrination in elementary school, and earlier.

New York Times link: McCain: Obama Turned Heat on Joe the Plumber

Mexico's Economy Depends On Illegals In U.S.

Oil revenues is Mexico’s largest single foreign revenue source for the Mexican government. The second largest foreign revenue source for Mexico is money mailed or wired back to Mexico from the United States by Mexicans living in the United States. They have a nice clinical name for it. They call it remittances. And by the looks of this video , the major part of it seems to be coming from illegal alien Mexicans living in the United States.

Mexicans living in the U.S. sent home 12 percent less money in August, the largest drop on record since the Bank of Mexico began tracking remittances 12 years ago. Many towns depend on these dollars for survival.

According to the report, ‘remittances’ have dropped from $2.2 billion last year to $1.9 billion this year. It is not clear whether that was for August only or if that was a year-to-date figure ending in August. Whichever, they ‘blame’ increased border security and increased deportations, in addition to a slowing economy in the United States for ‘their’ loss. They are saying there is no work available here anymore. Can you say ‘guest worker’ program?

Looks like Mexico is going to have to learn how to take care of its own people and from within its own borders for a change. The bad guy here is Mexico’s government, not the United States government.

Since there is no compulsion in Washington or in Mexico, for Mexico to reimburse the United States for subsidizing them via remittances, and for letting the illegals here suck on the American teet, the question is whether the current financial crisis is enough for legal taxpayers to stand up and say ‘No Mas.’

MSN video

Gov. Sarah Palin Rocks Pensacola

A week ago, Pensacola was preparing to welcome Gov. Palin outdoors at the end of the runway at the airport. It’s a good thing they changed the venue to the Civic Center for two reasons. The original thousand tickets got swallowed up in a few hours, and, it rained. I was among the 10,000+ people who stood in line in the rain to get in the Civic Center. Afterwards, I found out that the fire Marshall had declared the event full and not everyone that came could get in.

The anticipation and enthusiasm of the crowd was as good as it gets for any rock concert I’ve been too, and I’ve been to a lot in my day. Most of them I can remember, but I digress.

The big difference was that the people in line were sober, orderly, polite, of all ages, and anxious to see Sarah Palin.

She spoke of how John McCain and she will change and shake up things in Washington and get the economy going with lower spending, lower taxes, on energy, and that we will continue to win the war instead of merely end it. She listed contrasts between the Obama campaing and what they want to do and the McCain campaign and what they want to do. She effectively laid it out as a clear choice for voters.

She didn’t let Obama slide on some of his unsavory alliances or associations as relates to his judgment and character. She reiterated the Bill Ayers saga. Today for the first time, she also referenced two of his recent economic advisers who were also heads of Fannie Mae and Freddie Mac. And from their roaring response, the audience knew who she was talking about without mentioning Johnson and Raines by name.

Having been to the last VP visit prior to the 2004 election, when Vice President Cheney held an event at PJC, the difference in turnout and enthusiasm was striking. I think if they were asked who you would rather have a cup of coffee with or go hunting with, Cheney or Palin? Palin would win by a landslide. 😆

Below was the scene when Gov. Palin took the stage. Just a 60 second sample of the excitement. My position was beside the media’s camera platform where there was zero commotion during the entire event.

Germany, Europe Have Their Own Financial Issues

Countries within the European Union are reacting individually rather than collectively, in propping up their banks amid worries that a run on the banks by depositors will lead to another 1929-like rush on the banks. Fresh in their memories is what happens after severe economic troubles. Someone nasty comes to political power. In their case, it was Hitler.

Sunday’s deal came hours after Merkel and Finance Minister Peer Steinbrueck announced an unlimited guarantee for all personal savings and checking accounts. The move was aimed to shore up confidence amid a spreading global financial crisis, in a country in which failing banks bring up particularly bitter memories of the 1930s Great Depression, which helped the Nazis rise to power.

In a bid to head off a run on banks, Finance Minister Peer Steinbrueck assured that German account holders need not worry about losing a “single euro” in the crisis. “This is to give a signal so citizens do not run to their banks and savings and loans tomorrow to withdraw their money,” he said of the guarantee.

Italian Prime Minister Silvio Berlusconi was quoted as saying Italy would revive the idea of a common bailout fund for European banks at a meeting of finance ministers in Luxembourg on Monday. Germany shot back that it remained opposed to any such pooled funding for European bank rescues like the $700 billion bailout approved last week by the United States.

What's Wrong With This 'Bailout' Bill?

This bill had a lot of bi-partisan support. It also had a significant number of bi-partisan non-support. Just not enough to defeat it. My representative, Rep. Jeff Miller (R-FL) voted NO on both opportunities, last Monday and yesterday, when the bill was fast-tracked to the President’s desk, who signed it into law. Miller has proven to me that he is the kind of Republican, a real conservative, that we need more of in Congress. So kudos to him. Sen. Bill Nelson (D-FL) also voted NO on the senate version. Good for him. Then there is Sen. Mel Martinez (R-FL) and former head of the RNC. Martinez voted for it. No surprise there. Regarding this bill, I have two objections to it.

1) It is unconstitutional based solely on the preamble of it:

We the people of the United States, in order to form a more perfect union, establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity, do ordain and establish this Constitution for the United States of America.

Promote the general welfare does not mean insure the general welfare, and, there is no liberty when it is usurped by the government.

2) By its actions, the bill totally socializes the financial industry of the country. Whether, like Bush says, the bill will save us from a financial crisis is besides the point. The right solution would be one that does not socialize the entire economy and still solves the problem.

That we are supposed to have confidence, that the same people that created this problem can fix it in a matter of a week, if I may quote a famous politician, ‘requires a suspension of disbelief.’ Congress, President Bush, and Secretary Paulson have behaved more like used car salesmen than statesmen. No disrespect to used car salesmen.

I don’t have a solution. I’m not that smart. But I do know that going the socialist route is not the correct route. Manipulating the market made the problem. Now, manipulating the market and putting taxpayers on the hook is supposed to fix it? I don’t think so. The answer lies somewhere in letting some companies fail and/or reorganize and/or renegotiate their currently worthless paper, and not allow mortgages to be ’securitized.’

What do you think?

EPA, Not Enough Damage To Limit Corn Ethanol

Using corn-based ethanol as a fuel alternative has not accomplished what the ‘experts’ thought it would do. What it has done so far is to drive up the price of corn-based products world-wide. You’ve seen this in the grocery store in higher prices. Corn has gone from $2 per bushel to $8 per bushel, hitting the poor people in Central and South America especially hard.  It has caused the United Nations to complain that they can no longer feed the poor that they used to, let alone expand their aid program to feed the world’s hungry. It has also depressed the cattle and poultry industries, and any industry that uses corn as food, whether for people or animals.

Texas governor Rick Perry, (R-TX) puts it this way, ‘we do not want to be forced to choose between fueling our cars and feeding our families.’  In his state, higher corn prices are . . .

devastating the livestock industry to the point that Texas cattle feeders have been operating in the red since 2007.

Even our largest agriculture companies are taking a hit. Pilgrim’s Pride and Smithfield both posted huge losses this past year. Tyson’s bonds were downgraded. And New Way Pork, Texas’s largest independent pork producer, has been driven out of business by feed costs that have risen 50% since 2004.

In an effort to stop the bleeding, Gov. Perry asked the EPA to cut the grain-based ethanol mandate in half for one year.

Last Thursday, the EPA announced it was denying my request. Why? Because the agency’s agriculture and energy economists said the mandates are not causing sufficient damage to warrant action.

The EPA didn’t say how much damage to the economy they were hoping for.  But one thing is clear. Using food products for fuel is a huge mistake.

Perry says . . .

Supporters of the ethanol mandate have their hearts in the right place if they want to diversify this nation’s fuel supply. But artificially propping up an industry to the detriment of the vast majority of Americans is bad policy. And that’s what this mandate does.There are many sources of renewable energy in addition to corn-based ethanol. It is time America took steps to develop the technology to make use of these sources.

Only a bureaucracy like the EPA can argue with that. Time has come to inject this agency with a good dose of common sense.

related links:Texas Is Fed Up With Corn EthanolUnited Nations Warns Of Food Fight | New Study Recommends Against Burning Biofuels to Solve Global Warming