Obammunism – What is “Fair”?

G’Day!

Everyone believes in “Fairness” but what is it? Is “Fairness” equal opportunity to succeed based on your own efforts and decisions, free of government intervention? Or, is “Fairness” government dictated equal sharing of the success of others independent of personal effort and decisions? Consider this, who determines “Fair Share”? Under Capitalism, “Fair Share” is objectively determined by the choices of free people in a free market. Under “Obammunism”, political bureaucrats subjectively and arbitrarily determine “Fair Share” and impose it on the people. Regarding tax alone, what is to protect you from the “Bureaucratic Elite” changing the wealth threshold from $1 million, to $250,000, to $100,000, to $75,000 or lower? If you support Obama’s policies, nothing can protect you from the Government arbitrarily changing “Fair Share” to adversely penalize more and more successful people. If you work hard and succeed in improving yourself and your family, what is to prevent the government from penalizing you for becoming “Rich”? Under Obama, “Fair Share” cannot be satisfied until everyone is economically equal. This is not “The American Dream”.

To our Founding Fathers “Fairness” is our personal “Entitlement” to national security, individual freedom, and free market capitalism with limited fiscally-sound government based on equality of opportunities and private property rights. To President Obama and the Democrats it is “Obammunism”, which is based on the government’s “Entitlement” to regulate and control the American people and businesses to accomplish subjectively determined income and wealth equality. “Obammunism” is achieved through higher taxes, bigger government, forced income and wealth redistribution, expanded welfare dependency, and unfunded entitlements to an unnecessary and undeserved portion of the population. It further requires excessive environmental restrictions on the use of private property, regulations and controls over selected industries, and use of taxpayer funds in the arbitrary selection of industrial “winners & losers”. So far Obama’s big government approach to economic equality has resulted in slow economic growth, a net loss of approximately 4 million jobs, and an energy policy that has killed jobs and leaves American security more dependent on imports of foreign oil. “Obammunism” has also resulted in a 60% increase in our National Debt (from ~$10 trillion to ~$16 trillion) and a huge fiscally unsustainable federal deficit that has exceeded $1.3 trillion in every year of Obama’s Presidency. Erskine Bowles of the Bowles-Simpson Debt Reduction Commission stated earlier this month on the subject of our National Debt, “It is like a cancer. Over time it will destroy the country from within.” Alan Simpson simply referred to it as, “Madness”.

The founders of our great country also believed in equality, the equality of opportunity implemented through personal freedoms, private property rights, and free markets. They believed in minimal government and established a Constitution and subsequent Bill of Rights to guarantee and protect the individual liberties of all citizens from the oppressive policies of the foreign governments from which our ancestors fled in search of a better life. Is it moral or ethical or “Fair” for the government in a land of equal opportunity to engage in wealth redistribution from those who worked hard, made good decisions, and earned their success to those who did not? While nearly everyone believes and supports a reasonable social safety net for the truly needy, the trends since the Great Depression have increasingly been to increase welfare and entitlements far beyond reasonableness and absolutely beyond sustainability.

So what do I believe is “Fair”? What “Entitlements” should we expect from our government? First and foremost, I believe that we are entitled to a President who actually believes and supports the oath of office he declared at his inauguration, which is: “I do solemnly swear (or affirm) that I will faithfully execute the Office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States.”

I believe that we are entitled to a limited government that is business friendly and supports and protects our individual freedoms, free markets, private property rights, sound fiscal & monetary policy, economic growth, and the security and defense of our great nation.

I believe that we are entitled to a limited federal government that regulates and enforces only those activities that cannot be controlled by citizens through either individual freedom of choice under free market capitalism or by State and local governments.

I believe that, except for essential government services, we are entitled to keep what we earn and that wealth redistribution for the goal of economic equality, excessive welfare, and unsustainable entitlements is “Unfair”, unethical, and destructive to economic growth. I further believe that tax reform is essential. (See “Fiscal & Debt Crises – Tax Reform Essential!”)

I believe that, as the Founding Fathers intended, we are entitled to a government that protects our right to use our private property as we wish as long as it does not endanger or encroach on the value of our neighbor’s property AND that we should have the right to use our private property free of unnecessary environmental control and regulation by administrators.

Finally, I believe we are entitled to a President that supports and protects the rights of ALL American citizens and does not promote policies intended to enhance reelection prospects by dividing the country by income, gender, ethnicity, religion, political party, sexual orientation, or race.

Under Obama, our exceptional nation is on the precipice of a fiscal catastrophe and terminal decline in the world. It is not yet too late to correct the Obama’s neo-socialist trend for more taxes, more spending, bigger government, slower economic growth, and eventual collapse under a mountain of unsustainable debt. Throughout history, no nation has been able to sustain excessive spending by taxing, borrowing or “printing money” as a way out of fiscal insanity. All have failed. It is time for America to wake up and realize where this “Amateur” President is taking our country. Study the issues and vote accordingly in November.

The Old Guy PhD

“Obamacare” Revisited!

G’Day!

Originally I intended to post an article on the subject of “Fairness”, but the unexpected decision by the Supreme Court to uphold “Obamacare” has placed the healthcare issue firmly back on the political table. It is expected that the House of Representatives will vote to repeal “Obamacare” in its entirety in the next few weeks and, like the fate of nearly all House proposals passed, it will die from total avoidance and neglect in the Democrat controlled Senate. This makes healthcare, along with the economy and job creation, again a key issue for the November election and one we should seriously reconsider. Therefore, the article noted above will be delayed and posted in the future.

Over a year ago I posted two articles on the subject of fixing healthcare, “How to Solve Healthcare Part I” and “How to Solve Healthcare Part II”. The suggestions proposed in these articles are as relevant today as they were last year. Because many of you may not have read them previously, I am summarizing the important points of these articles below. Reconsider them carefully in light of the current situation, follow closely the proposals put forward, and vote accordingly in November.

First, while I am deeply disappointed with the Supreme Court decision, perhaps its most troubling aspect is the justification by Chief Justice Roberts of the “Mandate” on the principle that Congress has the power to tax in order to force us to buy products consistent with laws they pass. This seems to open a new Constitutional power for Congress to dictate what we should (or should not) buy or to “tax” us if we do not comply. In this case we must buy insurance or a penalty (now considered a “tax”) for non-compliance will be imposed. What are the limits of this new power? Can the federal government demand that we buy (or not) certain foods or buy specific energy sources (or not) or buy other specific products (or not) or we will be penalized (“taxed”) into compliance? This is a troubling development that was not in the original bill and now permanently stands as a constitutional Supreme Court ruling regardless of the ultimate fate of “Obamacare”. This is not a good outcome.

Next, as stated in the two articles referenced above, “Obamacare” will only increase costs, undermine individual freedom of choice, result in jobs lost in the private economy, reduce competition, increase government size, spending, regulations, and ultimately lead to government-only rationed health services & treatment. This is still true. Nothing has changed. If anything, the damage to the economy and free markets from “Obamacare” has become even more obvious to all except Obama and his hardcore supporters. Obama’s tax and spend supporters actually want fewer freedoms for citizens, bigger government, and more control over individuals, private property, and business. “Obamacare” is just another big government program of tax and spend, which in my opinion is neither necessary nor desirable for the country. As I said in the above articles, there are free market solutions available, which would expand individual choices and minimize or prevent a government takeover of healthcare. The Republicans are right to oppose the bill, but the question of how we can fix it, reduce costs, and maintain our freedom of choice is still an issue. Perhaps the biggest question to be answered is, “Who should make healthcare decisions, the government or the patient in consultation with his or her doctor?” For me, given my belief in personal liberty and the effectiveness of free markets, individual freedom of choice is the correct answer.

In the two referenced articles the major issues upon which there is general agreement for improvement were identified. These are still applicable: 1) cost reduction, 2) coverage for “pre-existing conditions”, 3) patient choice in doctor selection & treatment, 4) portability of existing coverage in relocation, 5) coverage for catastrophic events, 6) tort reform, and 7) coverage for those involuntarily uninsured because of need. In the referenced articles I explain why largely non-government free market alternatives to “Obamacare” can provide specific solutions to each of these issues. We can do this at lower cost, with greater freedom of individual choice, and without an intrusive and expensive government takeover of healthcare in America. President Lyndon Johnson’s Great Society introduced the Medicare and Medicaid programs that started us on our current unsustainable healthcare path to ultimate fiscal collapse. We need to curtail these programs to cover only the truly needy not expand these unsupportable models for our future.

Simple and rational changes can and should be pursued such as:

  • Insurance competition across state lines,
  • Repeal/amend the McCarran-Ferguson Act of 1945, which exempts insurance companies from anti-trust acts,
  • Require portability of existing policies when relocating,
  • Enact tort reform (capped punitive damages and “loser pays”),
  • Create a national catastrophic healthcare insurance pool (similar to “Flood Insurance”,
  • Require coverage of pre-existing conditions with appropriately higher premiums (like car insurance for bad drivers),
  • Elimination of employers from the healthcare system with the current tax-deductible payments going directly to the employee with the option to buy his or her own insurance (also tax-deductible) (see “How to Solve Healthcare Part II” for details).

All of these changes except the last should be doable with some common sense and a little political will and are explained in greater detail in the original articles.

Healthcare should be a choice and responsibility of individual citizens in a nationwide market-driven economy. Let’s keep our government’s role at the minimum necessary to provide a competitive level playing field and a safety net for only those in temporary need and medical catastrophes.

“Obamacare” is another big government socialist attempt to take over our country, reduce our freedoms, and control our lives. Individual choice in a competitive free-market economy is the best way forward. Study the issues and policies carefully and vote accordingly in November.

The Old Guy PhD

Big Government IS STILL Our Problem – & It’s Growing!

G’Day!

A year ago on February 11, 2011 my first posted article was “Big Government IS Our Problem!” I firmly believe Big Government is STILL our problem and it is not only growing, it is accelerating! What our country needs is LESS GOVERNMENT not more. If we could get government off our backs, unnecessary discretionary spending could be eliminated, individual and business opportunities could be pursued, jobs created, and income increased, allowing our economy to expand more rapidly. Government needs to be reduced not enlarged.

Last year I believed President Obama and the Democrats would eventually consider the best interests of our country first and would finally realize that their policies were dividing and potentially bankrupting the nation and stifling economic growth. I hopefully thought the President and Congress would recognize this and relatively quickly pursue the excellent recommendations in the bipartisan Bowles-Simpson Debt Reduction Commission’s Report, which was officially presented to President Obama in early 2011. How wrong I was! Obama immediately shelved the report; the Democrats declared it dead on arrival and again failed to pass the required Federal Budget. It has now been over 3 years that the Democrats have prevented passing a budget and Obama’s huge overspending budget proposals have been overwhelmingly defeated by both Republicans and Democrats. Only the Republicans, especially Paul Ryan, have tried to adopt any of the Bowles-Simpson recommendations. Reluctantly, I have come to the conclusion that the “Obammunists” are only interested in pushing their socialist agenda for central control over our lives, our environment, and our private property. Their actions, or lack of, are driving our country into an increasingly dependent and unsustainable welfare state. More importantly, their policies are in serious danger of destroying the American creative opportunistic spirit and national prosperity in which the majority of US citizens believe and enjoy.

In my opinion it is not too late to correct this adverse trend toward mediocrity and save our nation. America can resolve its fiscal and debt crisis and restore our country to a united foundation for responsible government and future prosperity. However, this can only occur if we return to the principles that have made America the greatest and most exceptional country in the world. These principles are: Constitutionally protected individual liberties, free markets, sound fiscal and monetary policies, economic growth, and Constitutionally limited government. The “Obammunists” are rapidly leading us away from all these principles and toward a future of economic stagnation, shared poverty, limited personal freedom, and dependence on government for much of our survival. Under Obama, America is declining quickly into a centrally controlled overregulated socialist state with increasingly limited opportunities for aspiring individuals and companies to succeed.

So what should we do? The first and most vital action individuals can take is to become informed about the issues and vote out the “Obammunists” in the November election. This one single accomplishment will at least stop the rot and give us the opportunity to correct the damage done by Obama and the Democrats. Next we should demand our new President and Congress concentrate on resolving our fiscal/debt crisis, get our economy back on track, and create productive private sector jobs. As I outlined a year ago, at least six actions should be undertaken: 1) Stop/Minimize non-essential regulations, 2) Have a business-friendly government, 3) Reduce tax rates, especially on business, through tax reform, 4) Enact an energy policy that encourages rather than discourages development of domestic sources of traditional energy, 5) Fix the fiscal and debt crises by cutting government spending, revising entitlements, and increasing tax revenues through tax reform, 6) Pass the three pending Free Trade bills and expand them to include other trading partners. Of these six actions only #6, the Free Trade bills, has been passed. (see “Yes, We CAN Grow the Economy and Create Jobs!”)

More specifically, I suggest our new government in 2013 accomplish the following ten (10) priority items:

1)   Unless already accomplished in 2012 by the outgoing President and Congress, immediately extend all the 2012 tax rates for 2 years or until the Tax Reform in Item 6) below is enacted.

2)   Immediately declare a moratorium on any non-essential new laws and regulations.

3)   Immediately rescind Obamacare (unless The Supreme Court has already done this for us).

4)   Immediately rescind the Dodd-Frank Act and its approximately 400 new required regulations (most of which are still to be written). In this regard the most important pieces that need to be rescinded are “The Bureau of Consumer Financial Protection”, “The Financial Stability Oversight Council”, and “The Durbin Amendment”.

5)   Initiate and approve a medium term Balanced Federal Budget that downsizes government, reforms taxes by simplifying the code, reducing tax rates, broadening the tax base, and eliminating politically motivated subsidies. This budget should reform entitlements to sustainable levels, assure the defense and security of America, and reduce and “Cap” the Federal Government Spending at 18-20% of GDP. (see “Bowles & Simpson Have it Right!”)

6)   Initiate and enact the necessary tax and entitlement reform necessary to accomplish suggestion 4) above. (see “Fiscal & Debt Crises – Tax Reform Essential!”)

7)   Demand that any and all new laws or regulations enacted have a “Sunset Clause” that automatically terminates the new law within no more than 10 years.

8)  Demand that Congress review and terminate annually for the next five years at least 10% of all currently existing laws and regulations that are non-essential, unnecessary, or out of date.

9)   Demand a review of all Executive Departments and Agencies of our Government with the goal of downsizing or eliminating over time those that are non-essential, unnecessary, or just bloated. I suggest the prime candidates for consideration are the Departments/Agencies/Bureaus of: Environmental Protection, Energy, and the National Labor Relations Board.

10)   Longer term, Congress should initiate and pass a Federal “Balanced Budget Amendment” to the Constitution. Forty-nine states currently have some version of a balanced budget requirement. Only Vermont does not. (see “Is a Balanced Budget Amendment Necessary?”)

Our country can be saved if the American People recall and return our government to the original spirit and intent of our founders. The United States is exceptional among all nations because of our Constitutional support of individual liberties, private property rights, a free market capitalist society, and limited government. Government should be the servant of the people. The American People should not be the servants of the government. It’s time to take back our country! Study the issues and vote in November!

The Old Guy PhD

Obama – The Ego has Landed!

G’Day!

When I started this Blog in February 2011, it was not intended to be political but, after a year of following our President and Congress carefully, I believe I have no choice. My overall assessment is that Obama and the Democrats, what I call the “Obammunists”, are determined to fundamentally change the culture, prosperity, and exceptionalism of America into a huge centrally governed socialist nation where hard work, innovation, achievement, and success are penalized and indolence, obedience, and dependence are rewarded. Obama is actively pursuing a “Race to the Bottom” policy of economic wealth redistribution where the general population and industry (except the chosen “Obammunist” elite) are equally poor and dependent on government for survival. As I have said before, it sounds like communism to me. The Republicans are not perfect but at least they are trying to save our Constitution and our country from becoming Greece or perhaps Russia. If the Obama Administration’s policies are pursued, America is on a path of potential self-destruction that is unnecessary, unwise, and undesirable. I call on all freedom-loving Americans to become politically active, to get out the vote, and to defeat Obama in November.

Obama is acting like a man who would be king and is displaying the ego to believe he can accomplish it. Perhaps the clearest indicator of excessive self-image is someone who blames everyone else for bad decisions and bad results and continues to actively pursue and promote his mistakes. So far he has blamed his failures on former President Bush, the Republicans, Congress, the Tea Party, millionaires and billionaires, Wall Street, Europe, and recently launched an advance attack on The Supreme Court over Obamacare. He has been campaigning with our taxpayer dollars to divide the country by economic class, ethnicity, gender, religion, age, and entitlements. Charles Krauthammer recently predicted this could be “The dirtiest campaign you’ve ever seen.”

Obama’s ego is off the scale. He appears to believe that he is always right and anyone who doesn’t agree with him is wrong. Obama appears to believe that Americans are so naïve and gullible he can continue to be “charming” and successfully blame everyone but himself for the failures and bad policies of his administration. I believe that the American people are smart enough to see through his organized propaganda campaign of blame and misinformation. He is following other self-centered historical European kings and dictators who believed that a distortion of truth repeated often enough and combined with the use of government force will be tolerated by sufficient population to acquire and retain authoritarian power. Do you want to reelect a man who has been so wrong and made so many mistakes and still believes in his infallibility? The “Obammunists” are very dangerous to our Constitution and our culture of free market capitalism, constitutionally protected individual freedoms, entrepreneurship, and limited federal government. These are the foundations that have made America exceptional for over 200 years and, with our help will keep it strong, free, and prosperous for the future.

The “Obammunists” are counting on a silent majority of Americans to be apathetic and to believe the politics of misinformation that is being proclaimed to divide our nation. Obama is expecting freedom-loving Americans to stay at home in November and allow the organized leftwing socialist (communist?) labor unions, those receiving entitlements, and their supporters determine the election outcome. We must not let that happen! We must become passionate about saving our country for our children. The Founding Fathers established the Constitutional principle that government is the servant of the people not vice versa. We have the opportunity in November to correct the course of our country and put it back on the right track of liberty, capitalism, economic growth, and limited government. Study the issues and candidates and vote accordingly.

The Old Guy PhD

Wake Up America – Obama is Hazardous to Your Health (& Wealth)!

G’Day!

Not only is Obama hazardous to your health and wealth, he is even more hazardous to our Constitution, our personal freedoms, our national defense, our foreign policy, our economic growth, our energy independence, and our very fiscal survival as a country. If Obama and the Democrats are left unchecked (pun intended), our capitalist freedom-loving nation, that has been a model for the world for over two centuries, could become a centrally mandated, entitlement state of mostly parasites living off the productive endeavors of fewer and fewer successful hard-working citizens. At worst, America could turn into a failed bankrupt state. Given the apparent Obama agenda of dictated economic equality and oppressive federal government control over all aspects of our social, economic, and personal lives, the freedoms and opportunities for the hard working Americans will continue to be eroded through increasing regulations, restrictions, and taxes. It appears that Obama’s intent is to engage the nation in “class warfare” in order to make us all equally poor and dependent on the federal government for our survival. Unfortunately, it sounds a lot like communism to me. As “The Economist” headlined in February: “Over-regulated America: The home of laissez-faire is being suffocated by excessive and badly written regulation”. Regrettably, this appears to be true!!

Regarding health, all I need to say is “Obamacare”. Approximately two-thirds of the country doesn’t want it. It has and will continue to increase both healthcare and business costs and will inhibit job and economic growth. It will penalize medical innovation, decrease incentives for doctors, and increase direct and indirect taxes for those who actually pay them. It is a massive increase in government’s intrusion in our lives and will ultimately result in government-rationed healthcare including end-of-life decisions by bureaucrats. Hopefully, the Supreme Court will correctly declare the act unconstitutional and we can return to a logical and rational free-market based system with reasonable government support for the truly needy. I lived in Europe for approximately ten years and can assure you even our current system, which can be improved, is far better than “Obamacare”.

Obama is clearly an “elitist” who does not support our Constitution. The Constitution is the foundation of our individual liberties and places strict limits on federal government power. Obama appears to believe that he and his administration are smarter than our Founding Fathers and are more qualified than Congress or the people to make decisions and rules controlling our lives and our economy. Obama’s agenda is found throughout his administration and especially in his policies for Energy, Environment, Labor, Defense, and the Department of Justice, not to mention his appropriately named “Czars”. Look at the damage these federal bureaucracies have done during his brief term in office. Obama is trying to force his socialist agenda of an all-powerful federal government on the American people. He is even trying to bypass Congress with excessive use of executive power through administrative mandates. This is not the way our Founding Fathers intended the three branches of our government to function and is not good for our country.

Obama’s financial and economic policies have been and continue to be an accelerating train wreck for America. Suffice it to say that in only three years he has increased our national debt by over $1 trillion every year and in total by $5 trillion to more than $15 trillion (+50%), so much for electing a Community Organizer to run the country. Over the last year I have written many articles about how totally unsustainable and incomprehensible his financial and fiscal policies are. His Presidential budgets and the Dodd-Frank regulations are obvious examples of bad proposals and legislation. President Obama may be charming but he is a disaster for the future of our nation.

How many of you really believe Obama’s National Defense and Foreign Policies over the last three years have been favorable? Do you believe our country is safer and that our influence throughout the world has improved under Obama’s guidance? Do you feel that ignoring European desires, especially Poland and the Czech Republic, and caving in to Russia’s demands to eliminate the European missile defense shield has made Europe or the United States more secure? Has this concession to Russia resulted in any change in Russia’s willingness to cooperate with us on Iran, Syria, the Israel-Palestinian conflict or any important foreign issue? Has the abrupt withdrawal of armed forces from Iraq caused the Iraqi to experience less internal hostilities and regard us more favorably than before? Has the ill-advised announcement of a specific timetable for unilateral withdrawal from Afghanistan improved our relations with the Afghan government and the Taliban or resulted in a reduction of hostilities? Has his policy regarding Israel improved or worsened their conflict with the Palestinians in the West Bank? Have the unilateral defense cuts, including cancelling of the NASA Space Program with the immediate lost of thousands of highly trained technology jobs improved our ability to defend ourselves or compete scientifically in space with China, Russia, Iran, or even North Korea? Have our relations with China and Pakistan improved under Obama? And finally, how is the containment of Iran’s nuclear program going? Are these the policies you want continued by our government? I know that I do not.

Regarding Energy, the arbitrary Energy Department and EPA restrictions on fossil energy use, exploration, and development have made us more dependent on foreign energy sources from unstable regions of the world and increase our energy costs. Does the stoppage of the Keystone Pipeline from Canada and the associated loss of desperately needed domestic jobs make any sense to anyone other than radical environmentalists? Will the newly released emission standards on coal-fired power plants kill the coal industry and result in thousands of lost jobs. These administrative mandates will result in higher gas prices, higher energy prices, lower employment and less economic growth at a time when our country is struggling to recover. Obama and his administration should realize that our nation and the world will be dependent on fossil fuel energy for years and probably decades. We have abundant domestic sources of oil, natural gas, and coal available if our government would let us develop and use them. And, if we do not, the security of America will be in jeopardy and we will be at the mercy of unstable nations that do not like us. I for one am totally mystified. What is Obama thinking? I do not want to believe that Obama intentionally wants to destroy our country but his policies are certainly trending in this direction. This is not good.

As I said in last month’s article, “The growth of Western Civilization and especially the United States was fuelled by the expansion of individual liberties, property rights, and a free market capitalist society. Our nation was established on the fundamental principle that government is the servant of the people, not that the people are the servants of the government. It’s time to take back our country and return to the individual liberties, free markets, economic growth, and limited government we have long enjoyed.” WAKE UP AMERICA!

The Old Guy PhD

Obama’s 2013 Budget – More “Obammunism”!

G’Day!

Tax and Spend! Spend and Tax! Spend, Spend, Spend! These are the only fiscal policies the President appears to support. They were also reflected in his populist State of the Union oration in January. President Obama’s socialist concept for our country is painfully transparent. Higher taxes, excessive federal spending, unsustainable entitlements, reductions in National Defense, and another fiscal deficit of approximately $1 trillion for 2013 are all included in his push for more and bigger central government. Obama appears to believe in “Trickle-down Government”, where a parasitic government extracts wealth created by the productive private sector, adds an administrative processing fee, and returns the residual to government selected individuals and businesses in the hope for “stimulated” economic growth. Does this concept make any sense?

The Democrat-controlled Senate has not passed a budget in over three years. In every year of the Obama Administration federal deficits have exceeded $1 trillion (in 8 years of President Bush the maximum federal deficit was $0.5 trillion). Obama claims that his new budget “saves” approximately $4 trillion over the next ten years. It actually increases the cumulative deficit and debt over this ten-year period by approximately $6 trillion. Other than National Defense, his proposed budget makes no serious attempt to reduce government discretionary spending or entitlements. It appears that the President’s rhetoric is to create class warfare intended to improve his chances for reelection and not for the future benefit of our nation. How far behind Greece are we?

In my opinion, this budget and the State of the Union speech are more of what I call “Obammunism” and is bad for our country. “Obammunism” is essentially turning America into a centrally planned, European-style, bureaucratic, welfare state. This concept is based on a socialist doctrine of forced economic equality determined by an arbitrary bureaucratic definition of “Fairness” or “Fair Share”. Obama apparently wants to establish a socialist nanny state by transferring wealth from the successful businesses and individuals above a government-determined wealth “Threshold” to those below this level. “Obammunism” penalizes hard work and achievement and rewards idleness and failure. Simultaneously, it is stifling economic growth, promoting class warfare, lowering the potential standard of living for all citizens (especially the middle class), and continuing our nation’s decline under a mountain of debt. Obama’s policies continue to undermine our Constitution, our heritage, our culture, and our fundamental principles of individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government.

Consider this, who determines “Fair Share”? Under Capitalism, “Fair Share” is objectively determined by the choices of the people in a free market. Under “Obammunism”, bureaucrats subjectively and arbitrarily determine “Fair Share” and impose it on the people. What is to protect you from the “Bureaucratic Elite” changing the wealth “Threshold” from $1 million, to $250,000, to $100,000, to $75,000 or lower? If you support Obama’s policies, nothing can prevent the “Government” from arbitrarily changing “Fair Share” to adversely penalize more and more successful people. If you work hard and succeed in improving yourself and your family, what is to prevent the government from penalizing you for becoming “Rich”?

A society built on “Obammunism” has few incentives for anyone to create value (except bureaucrats, who subjectively divide the wealth, frequently among themselves). If value is created, it is likely to be taken away and redistributed to others. Taking from those who earn and redistributing to those who do not does not create wealth and prosperity. Margaret Thatcher said it best, “The problem with Socialism is that you eventually run out of other people’s money!”

The Communists put it this way, “from each according to their abilities, to each according to their need”. This did not work well for the people in the former Soviet Union. Communism’s precursor, socialism, is currently eroding the freedom, growth, and prosperity of the European Union. The path from democracy based on personal freedoms and private property rights to authoritarian wealth-sharing socialism based on central planning and control is not necessarily a long one (see “The Road to Serfdom” by Nobel Prize winner, Friedrich A. Hayek). If it is allowed to continue in America, it will further damage and perhaps destroy both the culture of constitutionally protected personal liberty and opportunity that we have enjoyed for over 200 years. Socialist societies penalize success and reduce economic growth and living standards. Capitalist societies reward success and increase economic growth and living standards. Which future do you want for yourself, your children, and our country?

The growth of Western Civilization and especially the United States was fuelled by the expansion of individual liberties, property rights, and a free market capitalist society. Our nation was established on the fundamental principle that government is the servant of the people, not that the people are the servants of the government. It’s time to take back our country and return to the individual liberties, free markets, economic growth, and limited government we have long enjoyed.

The Old Guy PhD

Election 2012 – America’s Choice Has Never Been More Clear!

G’Day!

Happy New Year! I hope your holiday season was enjoyable and successful and best wishes for a healthy and prosperous 2012!

This year we will face an election that will probably decide our nation’s course for many years to come. 2012 may be the most important election in our lives. Never have the choices been clearer than they are today: small government vs. big government – free market capitalism vs. centrally planned socialism – individual liberty vs. bureaucratic control of freedoms. At stake is the future of our economy, the relationship between our government and ourselves, federal fiscal and debt solvency, taxation levels, America’s role in the world, and the legacy we are endowing to our children. The key issue is which choice offers the best opportunity for economic & job growth, wealth creation, and a higher standard of living for the American people. It is critical that we each take the time and make the effort to understand the potential consequences for our culture, our opportunities, and our country from these two widely different visions of the role of government and vote accordingly.

Choice 1: Overall, the Republican Party generally supports small government, free market capitalism, and individual liberty. More specifically, they further believe in the Constitution as written by the Founding Fathers, individual & business freedoms, sound fiscal and monetary policies, tax reform for business and individuals, a government limited to protecting the legal rights of individuals, property, and the security of our nation, and equality of opportunities for all citizens. They believe that a reasonable but not unlimited social safety net is desirable for those truly in need. Republicans believe that prosperity and job growth is derived from entrepreneurial business activity free from excessive government interference and is promoted by minimizing regulations and maximizing freedoms and opportunities. Individual success is honored and rewarded. Free markets determine winners and losers and wealth is distributed based on objective “achievement”.

Choice 2: Overall, the Democrat Party supports big government, centrally planned European-style socialism, and bureaucratic control of freedoms. They support a “living” Constitution to be interpreted and modified by the judicial system as desired, regulated individual & business freedoms, unsustainable government spending and entitlements, higher taxes, and forced wealth transfer from the successful to the less successful. Democrats and especially the current President believe in regulated and even hostile control over businesses and the use of Administrative Executive Power as desired to accomplish this. They believe that economic and job growth is derived from government planning, controls, and subsidies to bureaucratically selected companies and industries. Individual success is envied and resented and should be corrected through wealth redistribution. The government determines winners and losers based on fiat and wealth is distributed based on an arbitrary determination of “fairness”.

For months we have heard impressive speeches from our President promising more “Hope and Change” supported by more government regulations, unsustainable entitlements, and higher taxes on the “Rich”. No doubt we will hear many more. But no volume of skillful oratory by the President or his eventual Republican contender can disguise the fact that the two fundamental choices above are the issues in the forthcoming election.

Do you believe that big government, centrally planned European-style socialism, and bureaucratic control of freedoms with increasing control over your lives and businesses are best for you? Do you believe that government administrators can make better decisions for us than we can make for ourselves? Do you believe that these bureaucratic decisions are the best approach to economic growth, job creation, and a higher standard of living? If you believe this, vote for Democrats.

On the other hand, do you believe in small government, free market capitalism, and individual liberty with the freedom to make our own decisions about our lives and businesses? Do you believe that we can make better decisions for ourselves than the government? Do you believe that individual decisions under free markets are the best approach to economic growth, wealth creation, and a higher standard of living? If you believe this, vote for Republicans.

President Obama’s position on the above choices is precisely clear and soon we will have a Republican Presidential Candidate to compare. Please take the time to study the choices, the potential outcomes from each on your lives, consider what is at stake for our nation and our children, and vote accordingly. The choice will be yours in November.

The Old Guy PhD

Capitalism is the Answer – Socialism is the Problem!

G’Day!

Yes, Free Market Capitalism IS the answer to our economic malaise. America is the country of equal opportunity (not equal income) and self-improvement through economic and social mobility, not stagnation, stratification, and redistribution of other people’s money. Capitalism is founded on growth, innovation, unlimited production, and decentralized decision-making through free market pricing. Capitalism properly allocates our economic resources as citizens’ wish (not the government), rewards creativity, and expands the wealth “Pie” for all to share based on effort and contribution. Socialism is founded on personal immobility, government control of production through central planning, and price controls. Socialism predetermines and distorts proper allocation of goods and services as the government wishes (not the citizens), restricts innovation, and redistributes the existing wealth “Pie” based on arbitrary administrative decisions of the government “elite”.

While no system is perfect in all respects, history has proven that Free Market Capitalism works best for maximizing economic growth and prosperity and improving living standards. History has also shown that Socialism does not work and over time retards economic growth and prosperity, and produces a lower standard of living. The demise of communist Russia, China under Mao, and the current European Union fiscal and debt crises are recent examples of the failures of Socialism and central planning. Our government should realize that it cannot tax and spend America into prosperity. Only growth in the private sector can create long-term prosperity and new jobs for our nation. The government should get out of the way, reduce regulations, shrink spending and entitlements, reform personal and business taxes, and let the innovative forces of Free Market Capitalism work.

Our current socialist-oriented, anti-business government has assaulted and discouraged innovative opportunities by enacting legislation and imposing regulations that restrict our ability to engage domestically in creative and profitable endeavors. These policies, including taxation, have stifled domestic investment, encouraged companies to create new jobs offshore, and suppressed the economic growth for which our nation is famous. If Obama’s policies continue and he is reelected, the “Middle Class” will suffer most from the continuing consequences of our economic stagnation. The current “Middle Class” will increasingly join America’s “Dependent Class” who rely on government handouts that sustain and maintain lower living standards. Is this the future you want for our nation and your children?

The factors that have made our country great and the envy of the world are the equal opportunities to improve ourselves through personal hard work, innovation, risk-taking, and thrift. To grow and prosper as our nation has historically done, we need to return to our foundations and encourage entrepreneurial opportunities for wealth creation based on individual freedoms, free markets, private property ownership, and limited government. We don’t need a handout; we want a hand up. Without government support and encouragement for vibrant and profitable financial and business sectors, our economy will continue to underperform. This will result in less, if any, economic growth; less, if any, wealth to redistribute; and fewer, if any, new jobs. Wealth is not created by attacking the institutions and individuals who create it. The choice for the future of our country will be ours at the 2012 election. Vote wisely.

The Old Guy PhD

Let’s Send Congress & The President on Unpaid Leave!

G’Day!

Let’s face the truth. Our government is doing nothing to solve our country’s economic problems and has actually made the situation worse in the last two and a half years. While not practical, perhaps the best way to create jobs and improve our economy would be to send Congress and President Obama on an unpaid leave of absence for 2012. Certainly neither is accomplishing anything of benefit and paying Congress to do nothing and President Obama to campaign for his reelection is a waste of their time and our money. Also, my real concern that they will continue to do even more harm through Executive Orders or will create new regulations that further restrict our businesses and prolong the political uncertainty that is at the heart of our economic stagnation. Since they are not doing anything meaningful, preventing all new government action in 2012 would give business the certainty of “status quo” and no further damage would be done prior to our national vote on economic policy. Withholding pay is a logical penalty for our current do-nothing government representatives and would have the benefit of reducing the deficit. Since their priority is reelection, this would give them the freedom to try to convince the electorate that they support policies that will protect our freedoms, promote jobs and economic growth, and deserve to be retained in office.

To be fair, let’s review a few of the major government results since the 2008 election. Our total deficit has increased by $4 trillion and the annual deficit more than doubled from $500 billion to $1.3 trillion/year. Government spending has increased from approximately 20% of GDP to 25% of GDP. National Debt has now increased by nearly 50% to an estimated $15 trillion, nearly 100% of GDP. New entitlement commitments through “Obamacare” was passed against the desires of the majority of American voters and will further increase deficits and debt in the future. The Dodd-Frank Financial Regulations Bill was passed, which significantly increases regulations over the financial services industry and has currently added to the turmoil, confusion, and stagnation in our banking system. The Energy Department and the Environmental Protection Agency (EPA) have virtually shut down domestic development and exploration of fossil fuel resources, have wasted billions of taxpayer dollars in support of noneconomic renewable energy companies (Solyndra et al), and have again delayed the proposed pipeline from Canada (Note: Canada is now threatening to sell the oil to China). The Department of Justice (DOJ) tried to bring the terrorist prisoners back into the US to be tried under US laws, supported the sales of guns to criminals and is delaying business mergers, which will improve the competitiveness of American companies. The Federal Communications Commission (FCC) has joined with DOJ in attacking the proposed merger of AT&T and T-Mobile. The pro-union activist National Labor Relations Board (NLRB) is attempting to stop Boeing from finalizing its new “Dreamliner” plant in the Right-to-Work State of South Carolina and is attempting to change voting rules to eliminate the requirement for secret ballot for unionization in a company. The do-nothing Democrat-controlled Senate has passed no government budget for approximately three years and has blocked attempts by the Republican-controlled House to pass fiscally responsible legislation. Not an appealing set of accomplishments.

President Obama is and has been in re-election campaign mode for months and has virtually abdicated leadership to resolve our unsustainable deficit and debt crises. In fact, Obama has significantly added to the magnitude of these problems by his uncontrolled increases in government spending, Obamacare, and the overall anti-business attitude of his administration. Obama ignored the excellent recommendations of his own Bowles-Simpson Debt Reduction Commission, which addressed all areas of the deficit and debt crises including increased revenues through tax reform, entitlement reform, and decreased government spending. Obama has also provided no apparent advice or leadership for the failed “Super Committee” and it now appears to have been designed to fail in order to create a political issue for the next election. As Governor Christie of New Jersey said this week regarding Obama’s lack of leadership, “What the hell are we paying you for?”

Enough is enough. Given the stalemate in Congress and an absentee President focusing on his own reelection, we should, if we could, send them all home on unpaid leave until the next election. Unfortunately, we need to have this election ASAP and not a year from now. The will of the American people needs to be determined regarding whether free market capitalism and individual freedoms or redistributive socialism and big government central planning is preferred. Personally, I vote for individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government.

The Old Guy PhD

Debt Crisis – Whatever happened to Bowles-Simpson?

G’Day!

The bipartisan Debt Reduction Commission co-chaired by Democrat Erskine Bowles and Republican Alan Simpson completed and submitted to President Obama in February a rational and comprehensive approach to our country’s fiscal and debt crises. I posted articles praising the work of the co-chairs and the commission members on April 1, April 16, and July 22. (See “Bowles & Simpson Have it Right!”, “Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!”, and “Debt Reduction: Bowles & Simpson Have it Right – Redux!”) To date, President Obama, the Democrats and the Republicans in the House and Senate have fundamentally ignored their proposal. Why their recommendations have been ignored by our government, and especially by the President, who established the commission, is a “puzzlement”?

The final Co-Chair’s proposal, “The Moment of Truth”, included both long and short-term government actions to resolve our fiscal and debt crises, contains nearly $4 trillion in debt reduction over 10 years, and was approved by eleven (61%) of the eighteen bipartisan members of the commission. As stated in Guiding Principle #2 of the draft report, “The Problem is REAL – the Solution is Painful – There’s no Easy Way Out – Everything Must Be On the Table – and Washington Must Lead”. Their proposal is comprehensive. It includes cuts and caps on discretionary spending and revenue enhancements through major tax reform to broaden the tax base, simplify the code, reduce tax rates, and cap revenue at 21% of GDP. It reduces spending for entitlements including healthcare and social security and eventually caps total spending at 21% of GDP. The proposed plan stabilizes the debt by 2014, reduces debt to 60% of GDP by 2024 and 40% by 2037. What’s not to like??

As noted above, it is a mystery to me why this proposal, developed and approved with bipartisan support, was shelved by Obama and ignored by Congress since it was formally delivered to the President nine months ago. While these are difficult and trying times, we should expect and demand that our President and Congress put partisan bickering and reelection concerns aside and act for the benefit of the American People. Time spent on campaign fundraising does not reduce our debt or improve job creation and economic growth. We deserve rational behavior from our elected representatives and should demand the compromise and cooperation necessary to correct our economic problems and return our great nation to a path of growth and prosperity. Admittedly, the Co-Chair’s proposal is controversial. It is also realistic, responsible, comprehensive, and should be receiving the immediate and serious attention of our President, Congress, and currently the “Super-Committee” (who are looking for a mere $1.2 trillion over ten years).

Every sensible citizen knows America has an unsustainable debt crisis that, if not corrected quickly, will lead to financial and economic disaster for our country. Socialism does not work. Greece is not a role model for government in America. Our current government is too large, too oppressive and is out of control. Economic growth is based on opportunities not restrictions and lower tax rates not higher regulations. Escalating government spending must be halted and its intrusion in our lives and businesses reversed. Tax reform to broaden the tax base, simplify the code, lower rates (especially corporate), and increase revenues is essential. Our government MUST be business friendly and promote the entrepreneurial spirit necessary for economic growth and global competitiveness. We need to bring back the constitutional freedoms and personal liberties that led us to be the greatest nation on earth. The Bowles-Simpson proposal is a good start.

The Old Guy PhD