Oh Happy Day! Twenty-six states have joined Florida in suing the federal government over Obamacare. That makes 27 states total.
The only answer to our debt problem, well there are more but this government-run health care is priority number one that has to go. To repeal and replace it is the road out of the economic ruin and the decimation of quality health care for our citizens.
Repeal it, the alternative already exists.
Continue reading Majority Of States Join Suit Against Obamacare
As an addendum to this post, Deficit Commission And Debt Ceiling Sleight Of Hand, below is a picture that ought to get your attention. It was a major factor in the mid-term elections. Believe it, or not.
No matter the spin about spending out there, our national debt has now surpassed, or on its way to soon surpass, our GDP. Put simply, we’re spending, and continue to spend, more than we make.
Anything wrong with this picture?
Congressman Rob Woodall (R-GA7) introduced the FairTax on the first day in session. It is still called H.R. 25. ? I thought it would be assigned a different number but, I guess not.
The FairTax effectively kills two birds with one stone. Make that three birds. 1) It will be an economic stimulus like no other in the world, without increasing our debt. 2) It will be totally progressive and will eliminate all taxation for the poor via the prebate. 3) No more filing tax returns, no need for the IRS. And because the FairTax will expand the tax base (the number of people currently paying taxes) from only working Americans to every person within the borders regardless of citizenship, the individual shared burden couldn’t be more ‘fair.’
The biggest advantage and stimulus will be evident with every paycheck you receive. Under the FairTax, your gross pay will be your net pay, exclusive of any state taxes of course. That’s because under the FairTax, all the federal income taxes you are currently paying will go away. The term ‘take home pay’ will be a thing of the past. You actually get to keep what you make. And you don’t need an accountant or tax lawyer to help get it for you. How fair is that?
And one more, which will be the biggest obstacle to overcome, and explains why H.R. 25 never made it out of the Ways and Means Committee under Charlie Rangel (D-NY15). The FairTax would end the taxing power currently held by politicians in Washington, and shift that power back to the people. Taking the ‘tax hammer’ away from Washington means no more leveraging tax breaks for campaign contributions.
The other good news here is that it begins with 47 co-sponsors. That’s more than in previous sessions when first introduced. And, among the sponsors is a Democrat, Dan Boren [D-OK2]. That’s a first too.
Meanwhile, contact your representative and ask him or her to become a co-sponsor, if they are not already. Tell them you support it and want them to do likewise.
Use this link to easily find your congressman’s phone number -> http://bit.ly/contactcongr
OR
Use this link to send them a quick email. -> http://bit.ly/ftcongress
“When They Feel the Heat, They Will See the Light” – Herman Cain
Link: to H.R. 25
In a nutshell, the propaganda wing of the West Wing is still saying ‘the economy is now on a sustainable growth path.’ New unemployment claims rose 18,000 last month. And the four-week average of unemployment claims is 410,750.
The number of people continuing to receive unemployment benefits fell by 47,000 to 4.1 million in the week ending Dec. 25, the department said. That doesn’t include millions of long-term unemployed who are receiving extended benefits from the federal government . . . {emphasis added}
and
Bad weather can also make it harder for laid-off workers to apply for benefits.
So I guess we can expect more. But hey
[A]pplications are far below their peak during the recession of 651,000, reached in March 2009.
All of which sort of belies the headline of the story. “Jobless claims rise, but positive trend intact; Economist: The jobs market, ‘the recovery’s caboose, is starting to catch up‘”
In their mind, the fact that there was only 410,750 new jobless claims last week is good news.
Considering the retail industry is reporting disappointing results in December, there isn’t going to be a whole lot of hiring going on any time soon. This is because the retail industry depends on the last 6 weeks of the year to turn the loss they carry all year into what they expect will be their year-ending profit. Thus the term Black Friday. This year, we had a Black Friday in name only, because if the ink is in the black, it isn’t to the point that any hiring will be going on until next Christmas season. Compounding the business climate is that fact that the FUD Factor is still alive and well. Another not insignificant condition that forces businesses take the cautious route.
Don’t worry, be happy.
Peter Robinson at the Hoover Institution interviews Dr. Thomas Sowell, noted economist, historian, and philosopher on his new book ‘Basic Economics’ and today’s economic situation and why we are where we are.
The interview is chock full of food for thought.
Thanks to the Hoover Institution for producing this interview, Peter Robinson for asking the questions, and Dr. Sowell for sharing your genius and book, Basic Economics, with us.
Listen to all the reporting and hand wringing over the thought that the new House majority party is out to repeal Obamacare. As though something terrible will happen. Actually, passing Obamacare, or more correctly, shoving it down our throats, is precisely why there is a new majority party in the House. It’s not that Americans would not like improvements in health delivery and health insurance in this country. It’s just that they did not ask for and do not want THIS solution.
The alternative exists that will deal with those ten percent of Americans that don’t have and for some reason do not want health insurance. It will do it without ruining the health insurance industry and the plans for the other 80 or 90 percent of Americans and their employers that are just fine with their current situation and the plans they have. The alternative is not a budget buster. Nor does it take your choice away or make your health care decisions for you. That alternative is H.R. 3400
Unlike Democrat-care, the Republican alternative would not impose fines on workers or employers, require cuts in Medicare, increase taxes, require a new government bureaucracy, require a “government health insurance” option nor add $1 trillion or more to the national debt.
Pulled this out of the archives . . .
At the beginning of President Obama’s speech to the joint session of Congress on Sept. 9, 2009 a truism was spoken about “comprehensive” (that’s political-speak for government-controlled) health care.
President Obama said “A bill for comprehensive health reform was first introduced by John Dingell Sr. in 1943. Sixty-five years later, his son continues to introduce that same bill at the beginning of each session.”
The truism that seems to escape Democrats is that for 65 years, they continue to ignore the will of the people. That socialized medicine is one thing that Americans do not want, and it’s time to move on. If the president really believes what he is saying, then he ought to be confident enough to also say that if his plan does not increase the availability and quality of care and the debt, and does not decrease the cost, then he will scrap his version of health care reform before his term ends and enact H.R. 3400, the Republican alternative.
Regarding President Obama, you have a decision to make. Is he lying about there not being a Republican alternative, or is he that far out of touch that he doesn’t even know it exists? Which one works for you?
Besides, if you take the president at his word, it should be President Obama calling for its repeal. He said he would not sign a health care reform bill if it did not bring down costs or if it increased the debt. By any account, Obamacare has not lived up to what he promised. Do you still trust what President Obama says? It’s a rhetorical question.
The American people already answered that one. And it’s time for a change. H.R. 3400, or a reasonable facsimile thereof, ought to be the course of action to take where actual health care reform (as opposed to deform) is concerned. Whatever comes out of it, it ought to be something that the American people want, not what a bunch of idealogues high on government-run health care want. An idea that has been rejected routinely for 65 years.
Hearken back to 2008. The government’s budget (yeah, they had one back then) was what it was. The debt was what it was also. Since that time, we’ve seen what we were told were ‘bailouts’ for various and sundry items that were going to save the economy from collapse. Instead, what happened was that the size of government grew.
Now, the president’s Deficit Commission dutifully omitted the part about going back to where we were in 2008, as if the new bloated government was the new starting point to work on decreasing the debt. They, through this sleight of hand, have assumed the massive growth in government in the last two years as a given, instead of the temporary booster shot that the bailouts were sold to us as being.
Putting aside all the minutiae and detail, the crux of the proposal comes down to two points: capping federal government expenditures at 22% — and eventually 21% — of GDP, and capping revenues at 21% of GDP.For virtually all of the Clinton and G.W. Bush years – and during all the Kennedy/Johnson/Nixon years – federal expenditures ranged between 18 and 20% of GDP.
The more important problem is on the revenue side. According to Office of Management and Budget figures, federal revenues have NEVER reached 21% of GDP. In fact, only in Bill Clinton’s final year in office – and during WW II – did revenues even exceed 20% of GDP. During the whole time from 1960 through 2008, federal tax revenues almost always fell between 17 and 19% of GDP, only occasionally rising above 19% (chiefly in Clinton’s second term) or below 17% (G. W. Bush’s first term). Even President Obama’s FY 11 Budget has federal revenues rising only to around 19% of GDP by 2015. So the 21% “cap” represents two full percentage points of GDP above what we have experienced even during historically “high” tax environments.
The next project for the new congress (remember we still don’t have a 2011 budget) is whether or not to raise, I said RAISE, the debt ceiling. That is a process that allows Washington to put us further into debt. It is also the process that will codify and approve the smoke and mirrors of the stimulus spending as being temporary, to being the new bloated state and size of our government as being permanent.
Question is will the American people see it this way? When Obama says we need to cut spending, he means that after increasing spending by orders of magnitude that we should be content with that, keep the size and reach of government where it is, and then we shouldn’t be spending any more.
Which brings us to ‘put our money where your mouth is’ day. Will congress acquiesce to the current size of government and all the bureaucracy that goes with it or will they say NO to raising the debt ceiling? If they approve raising the debt ceiling, will they follow up with the drastic cuts needed so we will not have to raise our grandchildren’s debt again?
Here is something else to ponder. No matter the spin about spending out there, our national debt has now surpassed, or on its way to soon surpass, our GDP. Put simply, we’re spending, and continue to spend, more than we make.
Link: What Am I Missing?
And in the quid pro quo department comes this gem that garnered zero mention in the media. It apparently has been scrubbed from the Department of Labor’s website. If it’s not there, does that mean it never happened? Screenshot below tells the story. Thanks to Red State for their diligence in being the watchdog on this story. You won’t find it anywhere else.
Isn’t it amazing why too, no one has ever questioned what business it is or should be of the government to support labor unions? They are a business just like any other. But, instead of taking them over, the Obama administration is more concerned with helping them grow by advancing The Employee Free Choice Act, now commonly called ‘Card Check.’
And so it was that last week, President Obama met with union leaders and ‘[T]alked about creating good jobs for the American people, and how the partnership with labor unions is essential to growing our economy and continuing our recovery.’
President Obama is the last person on the planet who believes that labor unions create jobs or grow the economy. And that some partnership with them (aside from giving them controlling interest in Chrysler) is essential to growing the economy. Considering that labor unions constitute only 12.3% of the workforce, down from 20.1% in 1983 when comparable records were first available, it is obvious that the president is looking for ways to pay them back for their huge campaign contributions and political activism in support of the Democrat party’s agenda. Labor unions won’t create jobs or continue a so-called recovery in the same way that the stimulus money has not created jobs or stimulated the private sector economy.
Looking at which side Obama’s bread is buttered on, it is revealing to see that union membership rate for public sector (government) workers is 37.4 percent, and only 7.2 percent in the private sector. Is it any wonder why Andy Stern is the most frequent visitor to The White House?
Check this, from Red State . . .
In light of the NLRB’s attacks on business this week, this little piece is striking, as it is the epitome of why the economy still sucks unemployment remains high.
The U.S. Department of Labor, which has become akin to the Ministry of Workers’ Councils, regularly issues a newsletter via e-mail and posts it on the Ministry’s website. This week, among other items touted, was this little gem on union bosses meeting with President Obama to discuss growing the economy and the government-union partnership.
[Screenshot below the fold just in case…well, you know.]
Obama, Solis and Labor Leaders
President Obama, Secretary Solis and key White House staff met last week with a dozen leaders from several national labor unions to discuss ways to work together to strengthen the economy. The group talked about creating good jobs for the American people, and how the partnership with labor unions is essential to growing our economy and continuing our recovery. The president and the labor secretary also highlighted critical steps that the administration has taken and pledged to continue to work closely with organized labor in the coming months on important economic issues.
It’s funny that the administration still refuses to admit that unions are the antithesis of private-sector job creation. In fact, it seems the only way unions create jobs is to buy politicians who steal other people’s money, then reward the union bosses with taxpayer dollars and government-approved discrimination.
Links:
Vice President Joe (BFD) Biden sent out his congratulatory message to the eleven percent of the country that think we’re going in the right direction. Oh how easy it is to ignore the other eighty-nine percent of us. Here it is, with comments.
Ross —
Yeah, we’re on a first name basis.
I’ve been in Washington for almost 40 years. I’ve seen a lot of Congresses come and go. But I can’t remember a group of lawmakers who accomplished more than the folks who just wrapped up their work.
Replace ‘lawmakers’ with ‘lawbreakers’ or ‘pirates’ and he’d be more correct. They dispensed with the Constitution about two years ago. What Joe really means is, ‘despite the will of the American people, we shoved government-run health care down their collective throat anyway. Aren’t we good?’
With their help, we repealed “Don’t Ask, Don’t Tell” and ratified the START arms control treaty. We passed a new law to rein in the abuses on Wall Street and protect consumers. We reformed the health care system and passed the Recovery Act to get our economy growing again.
And that’s all working so well isn’t it? No net increase in full-time jobs, unemployment still over 9.5%, with real unemployment north of 15%. Well, repealing Bill Clinton’s DADT is a plus.
But do you know why all that happened? Because people like you rolled up your sleeves, dug deep, and decided to make a difference. We had a dedicated group of lawmakers — no doubt — but they were supported every step of the way by folks from all across this country who were ready for change. People like you.
I know why. It happened because you decided not to listen to the American people and ram legislation through without reading it. That’s why. And yes, eleven percent of the folks liked the idea of imposing ‘social justice’ throughout the land, like it or not. ‘Social justice’ does sound better than what it really means. Which is redistribution of wealth.
I know how much that means to me. And I can’t even begin tell you how much it means to the President.
Oh come on Joe. Give it a try.
So here’s the deal: President Obama wants to send you a note to express how grateful we are for all you did. Would you like to receive one?
Ahhh, ‘the deal.’ No thanks Joe. I think that eleven percent figure is about right. But give the DNC credit for trying to demonstrate greater support than there really is with this mailing. Joe, don’t be surprised if most of those on your mailing list pass on this one.
Two years ago, we were staring into an abyss. The financial crisis was the worst this country has faced since the Great Depression.
So what’s your point? We still are, and it still is.
But this Congress passed the largest set of tax cuts for the middle class since President Reagan, the largest education reform since President Johnson, the largest infrastructure investment since President Eisenhower, and the largest clean-energy bill ever.
And, you also increased the size of government exponentially. But here again, I’ll give you credit for repealing Clinton a second time by keeping the tax rates where Bush ’43 left them instead of where Bill Clinton left them. But Joe, only in your mind does leaving the tax rates unchanged constitute a cut. Well, you and your boss, and apparently the DNC also pretend to believe it.
The ‘this Congress passed the largest set of tax cuts for the middle class’ part is a lie of whopper proportions. Joe, let me remind you of what your boss said about these Bush tax rates. He said that they were ‘tax cuts for the rich’ and ‘on the backs of the poor’ and were ‘destroying the middle class.’ Joe, the benefits of what actually were the Bush tax cuts have worn off years ago. In the last two or three years, we have lost millions of jobs with no signs of improvement. The FUD factor still reigns supreme. But here’s the good part, now President Obama says that these same tax rates that were destroying the middle class are not only good for the middle class, but will now create millions of jobs. This, after having already lost millions of jobs. Huh?
Everything else Congress did just grew government and increased our national debt. Something only a community organizer would or could be proud of.
Now — even though we still have a ways to go — the economy is growing again.
Not in the private sector Joe. Not in the private sector.
Prior to this Congress, lawmakers had talked about reforming health care for almost a century. But with the President leading the way, these folks went out, and — with you at their side — they did it. Now 32 million more Americans will have access to health coverage.
Just goes to show how when you are persistent enough, that even 60 years of the American people saying NO to government-run health care, and a Congress that won’t take NO for an answer, what one can accomplish. So 300 million Americans can pay more in every way including suborning their own health care responsibilities and decisions to the government so, allegedly, 32 million people can have some kind of health care. Amazing.
When we came into office, just about the entire country had come to realize that “Don’t Ask, Don’t Tell” was wrong. More than 14,000 brave men and women had been discharged simply because of who they were. With your help, we struck down that law and made this country a more just place.
Good job. Funny though, that was one of the first things Bill Clinton did. Just don’t call our troops homophobes. And, no grab-ass on the battlefield. Talk about friendly fire.
Every lawmaker who worked to accomplish these things will talk about their votes — and the role they played in this progress — for years.
Legislating against the will of the American people is a big deal. Will probably never be forgotten. At least not by 2012.
The President and I take great pride in those achievements. But each one belongs to you. You believed in them, you fought for them, and we’re darn grateful.
No Joe. You and your Congress deserve all the credit.
So let the President send you a note to show our appreciation.
Sign up here:
http://my.democrats.org/ThankYouCard
Thank you — for everything,
Joe
Paid for and authorized by the Democratic National Committee bla bla bla ….. and bla.
And thank you Joe, for the opportunity to help you spread the word.
Links: Bill Clinton Sends The Kid Off ‘Please Go’ From Presser | Kill The So-Called Tax Cut Bill | Obama To Focus On The Economy; Believe It, Or Not | Congressional Performance
Now that the election is over, there still remains a solution that, whether implemented on the state level or the county level, can turn red ink into black. And it doesn’t come from taxing more or going further into debt. It is done by decreasing cost, with little effort and no sacrifice required. A novel idea for sure. And something that no one except economist Farid Khavari has thought of. Well, except for North Dakota, one of only two states with a surplus. They’ve been doing it for about 100 years and they only have a population of 672,591 people. His explanation below ought to be a challenge to our new state, county and city leaders to really think ‘outside the box’ and move our economy in the right direction.
Florida candidate for governor Farid Khavari shows you how in the article below. You can substitute Miami-Dade County for any county you want. It will work to our advantage. And by ‘our’ I mean, the government entity as well as the taxpayers. The progression goes like this; as the revenue increases, the taxes can be reduced. It’s just that simple. Download and read Zero-Cost Economy to find out how. The solution to our macro economic problem involves more than just our bank. But the public bank solution will go a long way in reducing our costs all by itself.
AN ECONOMIC SOLUTION FOR MIAMI-DADE COUNTY
by Farid A. Khavari, Ph.D., economist
Whether or not efforts to recall Miami-Dade County’s mayor and three commissioners succeed, MDC’s government must confront escalating unemployment, rampant foreclosures, declining property values and shrinking economic activity. Obviously, we cannot expect Washington or Tallahassee to save us. What we need are leaders and a coherent Economic Plan for Miami-Dade County’s future.
Miami-Dade County’s government faces the same insurmountable problem as a typical family today: costs are rising faster than income. When a family must pay higher costs for interest, taxes, insurance, energy, medical care, food and clothing, first they can cut back and reduce their quality of life. Eventually, the family will end up in debt and destitute. A county government can also cut back on services and employees. Of course, a county government can raise taxes to increase its income.
However, raising tax rates on declining property values and shrinking economic activity is a temporary fix at best. In the long term, it can only lead to more unemployment and further erosion of the tax base. This creates more need for county services as revenues dry up, clearly an unsustainable situation.
Simply put, anywhere you look, there is just not enough money.
Fortunately, there is a permanent solution to Miami-Dade County’s economic problems which will also benefit every county resident and make Miami-Dade County recession-proof forever. The solution includes reducing reliance on tax revenues, while lowering and finally eliminating property taxes by 2015. MDC’s government can earn more revenue than ever before, by providing services which lower the costs of living for its residents.
The results of this solution will be massive job creation without subsidies, a stable and affordable housing market, and unprecedented prosperity as everyone’s costs of living are reduced. MDC will have a permanent budget surplus without cutting jobs or salaries.
The cornerstone of this solution is to create the Bank of Miami-Dade County, owned by the county and operated for the benefit of the people of MDC. This bank can be established at no cost to the taxpayers, and earn billions of dollars per year for MDC’s treasury, while saving MDC residents even more billions per year in interest costs.
A publicly-owned bank is not unprecedented. The State of North Dakota has owned a bank since 1918. North Dakota has the lowest unemployment in the U.S. (less than 4% compared to MDC’s 13+%), and a budget surplus of over $1 billion, because they do not rely on Wall Street for money. MDC can do even better.
Under the same Fractional Reserve regulations that govern all banks, the Bank of Miami-Dade County can create $900 of new money through loans, for every $100 of new deposits. Since the BMDC will not be encumbered by massive derivatives liabilities and bad loans, and will operate for the benefit of the people of MDC rather than Wall Street—the BMDC can make substantial profits by paying higher rates for deposits than it charges for loans. Thus we can have:
4% Certificates of Deposit, 6% for long-term IRA’s
2% fixed rate, 15-year mortgages (new and refinance) for MDC residents and businesses
6% credit cards
3% car loans
3% business and construction financing
2% student loans (new and refinance)
2% alternative energy loans
2% financing/refinancing for MDC government and school projects
and more.
Note that in the extreme case of paying 6% for deposits, and charging only 2% for loans, the bank can earn $12 per year for every $100 of deposits ($900 x 2%= $18, less $6 for the deposit).
If we consider just the County’s own receipts as deposits for the bank, over $70 BILLION in new money can be created and earn at least $2 BILLION per year for MDC’s treasury. At the same time, MDC’s people and businesses would save at least $4 billion per year in interest expenses, which is $4 billion more that will stay in MDC to drive the economy. This is $4 billion PER YEAR added directly to the net worth of MDC citizens.
This additional $4 billion per year can create $36 billion per year in new money, earning another $1.5 billion for MDC’s treasury.
Most deposits cost a bank nothing. But to build up real wealth for MDC’s people and the treasury, the bank can pay above-market rates for savings. By attracting only 10% of the deposits already in banks in MDC, the BMDC can create another $90 billion in new money, ENOUGH TO PROVIDE A $100,000 2%/15-YEAR MORTGAGE LOAN FOR EVERY HOUSING UNIT IN DADE COUNTY. This would earn MDC’s treasury another $1 billion per year. At the same time, the homeowners would save over $2.5 billion per year in interest. That money contributes directly to the net worth of MDC citizens and stays in MDC to drive the economy.
Earnings from the bank can replace property tax revenues for MDC. Starting with pro-rata property tax rebates in the first year, then lower tax rates combined with rebates, BY 2015 MDC’S PROPERTY TAXES CAN BE ELIMINATED.
The result of the foregoing will be 150,000 new jobs in MDC within three years. This eliminates unemployment in MDC. These jobs will be created by the private sector, without subsidies. Within six years, those new jobs will have created 100,000 more.
It seems obvious that 2% mortgages would save everyone money, create employment and boost the housing market. However, in light of recent history, it is natural to assume that 2% mortgages would cause another housing bubble. In fact, 2% fixed rate/15 year mortgages would do exactly the opposite, creating stability and affordability in housing. Prices will stabilize at levels which are affordable to buyers and profitable for builders.
The reason is simple. While a 2%/15 year mortgage will save over 75% of the interest compared to a 5%/30 year loan, the monthly payment is slightly higher on the 2% loan due to the shorter term. This limits the price of a home for which a buyer’s income qualifies. At the same time, low construction interest rates mean the builder can earn more money offering a better house for a lower price. Further, since the average interest cost on a 2%/15 year loan (due to the rapid principle reduction) is only 1% per year, home prices will remain stable long-term for future generations of home buyers.
There are much more important long-term economic benefits from 2%/15-year mortgages. To begin with, a family will save about $150,000 in interest per $100,000 of mortgage amount, and own their home 15 years sooner. This means that after 15 years, the monthly amount that would have been paid for the next 15 years for a 30-year mortgage is available for spending or investment. This can result in $250,000 in extra retirement savings.
Further, with a 2%/15-year loan, 11% of the principle balance is paid in the first two years. This effectively creates enough reserves to make another mortgage loan of the same size. This makes the 2%/15 mortgage plan self-sustaining.
Creating the Bank of Miami-Dade County will cost taxpayers NOTHING. Using the bank’s earnings to replace property-tax revenue returns $billions per year to the people and economy of MDC. Operating the bank for the benefit of the people saves more $billions per year for the people and economy of MDC.
MDC will never face a deficit again. MDC will be recession-proof forever. Unemployment in MDC will be the lowest in the world. MDC’s people will enjoy prosperity and financial security unparalleled in the United States. Miami-Dade County will be a model for the entire United States.
Farid A. Khavari, Ph.D., is a noted economist and author of nine books, including the classic Environomics and his latest, Toward a Zero-Cost Economy. He was a candidate for Florida governor on the 2010 ballot. His proposal to create a state-owned bank in Florida was adopted by gubernatorial candidates (including Democrats and Republicans) in seven states. Dr. Khavari has lived in Miami since 1977. For more information, see www.zerocosteconomy.com.