Big Government – The Old Guy Phd

America, We have a Problem!

G’Day!

Yes, if we can still call it our country, America has a problem and it is Obama’s continuing push for “Big Government.” The results of his socialist policies are increasing dependency on government, more central control over our lives, slow economic growth, higher taxes, and unsupportable debt financing for the increased spending and expansion of government. Obama, Congressional Democrats, and the liberal media are promoting this unnecessary federal enlargement primarily for political purposes. Simultaneously, they are trashing the Republican Party for trying to do the right thing for our country by offering intelligent fiscal policies to correct the liberals’ addiction to spending and debt. All of these left-wing groups are ignoring the results of their policies and believe they know more about what is best for us than we know for ourselves. These liberals are very wrong and are hurting our country. Obama and his supporters are transforming America from a nation of “makers” into a nation of “takers.”

Our great country was created by people who came here desiring religious and individual freedom, economic opportunities, limited government, a fair legal system to protect their rights, and a democratic process that prevents development of the autocracies from which they fled. They left everything behind in the hope of a better life for their families and themselves. Our Founding Fathers and the American patriots risked their wealth and their lives to establish our independence from tyranny and create the freedoms our ancestors wanted and which we have enjoyed for over 200 years. Liberal and especially Obama’s socialist policies are undermining the country our Founding Fathers created. America’s historic virtues are being replaced with left-wing policies that are slowing job & economic growth, are rapidly expanding a dependency class that relies on wealth-transfer from the success of others, and exploding and unsupportable debt. Currently, there is no end in sight to this potential result. Is this the future you want for yourself and your children?

For the last century starting with Woodrow Wilson, these so-called “progressive” policies have been systematically undermining our individual freedoms, our Constitution, our capitalist economy, and the very fundamentals upon which our country was founded. FDR, Lyndon Johnson, and now Barack Obama have expanded these economically destructive policies in major ways. Perhaps more importantly, these policies have accelerated with Obama and are increasing the probability of our financial failure as a country. America cannot continue to support our current entitlement programs and government, let alone their enlargement. Throughout history socialism has not succeeded and, over time, nearly always results in oppressive central government, a debt crisis, and economic collapse. Under Obama in only five years our National Debt has increased by 70% from $10.0 trillion to $17.2 trillion. Make no mistake; these liberal groups really do want to control every aspect of our lives from cradle to grave and are apparently willing to risk bankrupting our country to accomplish this. If we do not stop them, the America in which you and I grew up and loved will likely be lost for our children and ourselves.

It is totally beyond my comprehension how we twice elected an inexperienced, unqualified, aloof, and imperial-minded President with few, if any, managerial skills to lead the greatest nation on earth. Obama’s singular skill is to be an impressive “talking head” by reading from a teleprompter. He has shown little interest or ability in effective leadership. The list of Obama’s economic failures and his foreign & domestic policy disasters is extensive; of which Obamacare is just the most recent. History will be the ultimate judge of Obama’s two terms in office and it is not likely to be favorable.

One of the few things Obama got right was when he said in a recent speech, “Republicans need to win an Election!” Absolutely true! The only way America can change Obama’s failing liberal policies that are continuing to damage our country, is to vote out the “tax, spend, and borrow” Congressional Democrats in the 2014 election and in 2016 elect an unbiased and qualified President who understands economics, foreign policy, supports our Constitution & individual freedoms, and truly believes in American exceptionalism. Obama has not been that leader.

Yes, America, we have a big problem and the problem is Obama and his left-wing supporters of “Big Government.” As noted above, on one thing Obama is right, if we want to correct the problem, “Republicans need to win an election.” Are you ready to do your part?

The Old Guy PhD

Obama-A Socialist America?

G’Day!

I agree with Dr. Charles Krauthammer, who indicated on National TV after this week’s State of the Union address, that President Obama’s intention is to transform America into a European-style Socialist State. Many of my articles over the last two years have suggested that Obama is a “Neo-socialist” – a person who believes in government control over all aspects of the economy, including wealth redistribution, regulations, “Executive Orders,” and central planning. (Neo-socialism is different from traditional ‘Socialism,” which is based on government “Ownership” of businesses and industries.) Neo-socialists want political and economic central control over the country but not the responsibility of ownership or consequences. Unfortunately, both socialism and neo-socialism are equally destructive to economic growth and individual liberties and has historically failed or is failing in nations that have pursued it. Is this the future you want for America?

Based on the President’s “Inaugural Speech” and the “State of the Union Address”, it appears evident that Obama and the Democrats have no real intention of reducing government spending, reforming entitlements, or even seriously addressing our federal deficit and debt crises. However, they are intent on more spending, more taxes, more regulations, more debt, and less freedom for the American people. Resuming the pattern of his first term, Obama also seems to be more interested in fixing “Blame” on everyone but himself (especially Republicans) for everything wrong, when he should be exercising bipartisan leadership to resolve our problems – especially the ones he has created or aggravated. In my opinion Obama’s idea of a “Grand Bargain” is to raise taxes by every means possible, including class warfare, to fund “Bigger Government,” “Entitlements,” “Green Energy,” “Climate Control,” “Wealth Redistribution” and any other project his neo-socialist ideology deems desirable. I believe America’s best days could be ahead but “Obammunism” is not the way to solve problems and is not good for jobs, the economy, the Middle Class, or the future of our great country. We need a President who is willing to represent ALL the people fairly, exercise impartial leadership, and take responsibility for the consequences of his actions and policies.

So how has Obama really performed so far? During his first Presidential Campaign, he promised “Change” to transform our government. Unfortunately, he has been remarkably successful in moving America in the direction of European-style socialism and a culture of dependency. In only four years the size of government has increased from 20% of GDP to 25% of GDP. Our annual Federal Spending has increased from $2.9 trillion to $3.8 trillion (an increase of over 30%) and is expected to continue for Obama’s second term. Our annual Federal Deficit has increased from $0.5 trillion to over $1 trillion (an increase of 50%). Our National Debt has increased from $10 trillion to over $16 trillion (a 60% increase and now more than 100% of GDP). In the first two years Democrats passed massive new legislation for government-controlled healthcare, sweeping regulations over the financial industry, and the use of “Executive Orders” by the EPA, the Department of Energy, and the unconstitutional appointments to the NLRB to regulate personal and business use of private property and erode personal freedoms. The Democrat controlled Senate has not passed a budget in nearly four years. Welfare dependency has increased significantly and forced wealth redistribution through higher taxes on the “Rich” was recently enacted (and Obama wants more). The economic results have been the worst recovery in decades and a decline in GDP in the 4th Quarter of 2012. Clearly, Obama has delivered on his promise to “Change” our country. Are these the “Changes” for which you voted? Do you believe continuing these policies will solve our problems and advance the future for our children?

In my opinion it is not too late to correct this adverse trend toward national decline and save our nation. America can resolve its fiscal and debt crisis and restore our country to a solid foundation of 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 our founding 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 quickly declining into a centrally controlled overregulated neo-socialist state with increasingly limited opportunities for aspiring individuals and companies to succeed.

So what should we do? We have a republic with democratically elected representatives. It is up to us to determine and vote for the representatives that place the future of America before politics and who will stand up for the best interests of the people and the nation. The first and most vital action we can take is to become informed about the issues and vote out the “Obammunists” in the 2014 election. This one single accomplishment will at least stop the decay and give us the opportunity to correct the damage being done by Obama and the Democrats. Currently, we should demand our 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 in many of my 45 previous articles, this can be done and we need to do it. The American People should not be the servants of the government. Government should be the servant of the people.

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

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

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

Is “The American Dream” Dying?

G’Day!

Yes, the traditional “American Dream” is probably dying if the divisive socialist and antibusiness policies of President Obama, the Democrats, and the Unions continue to be supported by our government. Already much damage is being done by the passage of Obamacare, the Dodd-Frank Financial Regulations Act (including the new Bureau of Consumer Financial Protection and the Durbin Amendment), the EPA, the NLRB, and now full force “Class Warfare” by the President to divide the country in an apparent attempt to be reelected. Martin Luther King Jr’s memorial opens this week and his famous “I have a Dream!” speech was about national unity and equality of opportunity not class divisions and wealth redistribution. If we want to preserve our freedoms, our opportunities, and our exceptionalism as a nation, these destructive attacks on our economy, attempts to divide the American people, and collectivist “nanny-state” policies must be stopped and reversed. We must protect and preserve “The American Dream” for future generations and ourselves.

Our traditional view of “The American Dream” is based on the principles our Founding Fathers and Patriots risked and gave their lives to secure for our country and our future. These values were documented in The Declaration of Independence, The Constitution, and The Bill of Rights. Primarily these values are: guaranteed individual freedoms (especially from government), equal opportunities for all Americans, decentralized governance BY THE PEOPLE, free market capitalism based on private property ownership, and a specifically limited-power federal government. These fundamental principles have provided all Americans the opportunity to choose our careers, succeed (or fail) based on our own decisions, and retain the fruits of our labor reasonably free from oppressive regulations, unnecessary controls, and excessive taxation. These freedoms and privileges essentially stood for over a century from our nation’s founding until the passage of the 16^th Amendment in 1913 authorizing direct federal taxation. Since the authorization of direct federal taxation these basic rights have been inexorably eroded as the size, scope, controls, and restrictions by government over our lives and our economic opportunities has expanded. It is time to get government off our backs and return to our traditional vision of success embodied in “The American Dream”.

The socialist and antibusiness agenda supported by President Obama and his allies is accelerating the destruction of this dream. Obama’s alternative is a collectivist society of mandated wealth sharing, unsustainable federal spending, high taxation, limited individual and business freedoms, and highly centralized governance. Obama appears to want a federal government with virtually unlimited power to regulate, control and dictate our lives, our property, and our businesses, including the transfer of wealth from those who have created jobs and earned it to those who have not. Just look at the current “Occupy Wall Street” mobs that have picked up Obama’s message and essentially want to destroy the capitalism that made our country great. Socialism doesn’t work as the former Soviet Union and most European countries, especially Greece, have learned. As Margaret Thatcher said, “The problem with socialism is that you eventually run out of other people’s money”. Is this the vision of America’s future that you support?

So how has the growth of “progressive” or socialist policies influenced “The American Dream” over the last century? Federal income taxes have “progressed” from a maximum rate of 7% in 1913 to a current rate of 35%. Obama and the Democrats are proposing to raise this rate to 40%. (Note: this rate does NOT include the approximate 15% in federal “payroll taxes” additionally paid by employees and employers or State and Local taxes.) Federal government spending has “progressed” from 3% of our national economy in 1913, to a current level of 25% under President Obama (an increase in the size of government by 5% in just two and one-half years by Obama). The number of federal government agencies, bureaus, departments, and employees has exploded since 1913 under both Republicans and Democrats. This was especially true under President Roosevelt’s “New Deal”, President Johnson’s “Great Society”, President Bush’s “Prescription Drug” legislation, and now President Obama’s “Healthcare” and “Financial Regulations”.

The Obama Administration alone has more than doubled the ANNUAL Federal Deficit, increased the National Debt by approximately 40%, increased the cost, uncertainty, and complexity of healthcare, and passed sweeping and largely unnecessary regulation over our essential financial industry. Obama’s healthcare plan alone creates an estimated 159 new agencies and the Dodd-Frank Act requires an estimated 387 new regulations across 20 agencies. The EPA under Lisa Jackson wants to implement and administer new business and job killing environmental regulations that are projected to cost tens of thousands of jobs and increase our energy costs. Essential domestic fossil fuel exploration and development in America has been virtually shut down. (Note: Opening our domestic energy resources could create hundreds of thousands of good American jobs and improve national energy security.) Among other pro-union activities, the National Labor Relations Board (NLRB) is attempting to stop final implementation of Boeing’s new “Dreamliner” factory in South Carolina. The Department of Justice (DOJ) under Eric Holder is disrupting our legal system, suing States for trying to enforce immigration laws, and interfering with mergers that would improve the competitiveness of American Business. Obama’s failed economic policies have stifled business and job creation, stagnated our economy, and significantly expanded the size and spending of our government. These policies are radically advancing an unsustainable European-style centrally planned socialist welfare state for our country and eroding our individual and economic freedoms. Are these “progressive” social policies enhancing our lives or your vision of “The American Dream”?

If we don’t stop this madness and get the government off our backs and our businesses, “The American Dream” of opportunity and success will continue to die and may be destroyed. A nation cannot be successful by confiscating wealth from those who create it and redistributing it to those who do not. Leftwing collectivist policies do not work. These are not the foundation of freedoms and opportunities upon which our country was created and which made America great. It’s time to take back our country and restore “The American Dream”. Let’s get to work!

The Old Guy PhD

Yes, We CAN Grow the Economy and Create Jobs – Redux

G’Day!

On June 10 I posted the below article on the above subject. To date the Obama Administration and Congress have failed to act on any of the issues and suggested solutions presented. The article is still essentially accurate after three (3) months of non-action and is repeated below for those who missed it. We must get our government working for the people and not for themselves. I hope you join with me in advocating responsible government that supports individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government! Let’s get to work!

Obama and the Democrats have tried and failed with virtually every centrally controlled socialist alternative to stimulate the economy and create jobs. The only jobs they have really created are in government. The so-called recovery is the weakest in decades and may be about to “double dip”. Big collectivist government solutions have failed miserably (see “Big Government IS Our Problem!”). Obama and the Democrats only answer to this failure has been to blame it all on Bush. They claim that without their $4 trillion dollar taxpayer & debt funded stimulus, nationalization of businesses, increased healthcare regulations and spending, increased financial regulations, and extreme monetary easing by the Federal Reserve, it could be worse. The only thing that worked has been TARP and that was enacted under President Bush! It is time for government to stop regulating, remove the uncertainties facing business, get out of the way, and let the free market and capitalism work. You do not create jobs by taking wealth from those that generate it, siphon off government administration and oversight, and redistribute less of it back into the economy.

Economic growth and job creation is about free markets, minimum regulations, incentives, and opportunities in the private sector. Government doesn’t create jobs; the private sector creates jobs. Government also doesn’t create opportunities but it can discourage or prevent them (think energy policy) and it can and does distort the market through politically motivated subsidies or tax deductions for selected industries. If taxation and regulations are minimized to the level necessary to support the essential role of government as defined in our Constitution, business will take advantage of whatever opportunities are available in the marketplace and the economy will grow. Unfortunately, the Obama administration and the Democrats in Congress do not understand this. They apparently believe that a few “elites” (themselves) in government are smarter than the millions of consumers and business managers throughout the global economy. They have imposed on American business a climate of increasing regulatory restrictions, increasing healthcare costs, high business taxes, and increasing uncertainty as to what they will do next. In this centrally controlled environment, it is no surprise that American businesses are not currently hiring or investing in our country. The regulations and costs just in Obamacare and the Dodd-Frank Financial Regulations Act are particularly harmful and businesses are wisely waiting to see what the government will force on them next.

So what needs to be done to create jobs and get our economy back on track? At least six actions could and should to be taken: 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.

First, a moratorium on new regulations should be declared and all regulations associated with Obamacare and Dodd-Frank (especially the Consumer Protection Agency) halted until after the next election in 2012. The uncertainty overhang from these two bills alone is stifling hiring and investment by business. Ultimately, all regulations, both existing and new, should have a “sunset clause” that requires our government to formally reaffirm their need at pre-set intervals, perhaps every ten years. This would insure that outdated or unnecessary laws do not become permanent.

Second, President Obama needs to realize that his collectivist socialist policies don’t work and become truly business-friendly. It is no secret that the current administration is pro-union, pro-environmentalist, and anti-business as evidenced by numerous actions by himself and the Administration’s Departments and Agencies. The pro-union/anti-Constitution actions by the NLRB against Boeing in South Carolina (see “Attack on American Business by Obama “packed” NLRB!”) and the many actions of environmentalists against any form of energy development (drilling in the Gulf of Mexico, Shell Oil off the coast of Alaska (see “Obama Administration Attacks American Business Again!”) are not conducive to economic growth and job creation. This week the issue of an energy pipeline from Canada to Texas has also come under attack by environmentalists. These and other obviously pro-union and environmentally biased activities against businesses (and some States) should be halted and free markets given an opportunity to function.

Third, tax reform is essential to both economic growth and reduction in the deficit (see “Fiscal & Debt Crises – Tax Reform essential!”). As the referenced article indicates, there are several excellent proposals available and Republican presidential candidate, Tim Pawlenty, just added another this week. All are pro-growth and pro-job creation and all will work by providing incentives for private sector investment IN THIS COUNTRY, not abroad. Naturally, the Democrats, who believe in centralist government solutions and not in free markets, are generally opposed to all of them. Perhaps the easiest, most immediate, and most beneficial tax reform is to reduce (or eliminate) corporate tax rates to a level equal to or less than the major nations with whom we compete and simultaneously eliminate the politically motivated subsidies and deductions that distort the market. Currently US corporate taxes at 35% are highest in the developed world and actually represent double taxation on income, first at corporate level and again at personal level, when distributed as dividends. Additionally, the high US corporate tax rates discourage US based international companies from repatriating foreign profits back into the US because, if returned, they are taxed at the higher US tax rate. Our current tax policy encourages investment abroad and discourages repatriation of profits back into America. This is a job killer, not a job creator. Is our government crazy?

Fourth, enact a domestic energy policy that encourages rather than attacks development of domestic sources for traditional energy. This will create thousands of good jobs in our economy and reduce our dependence on foreign energy supply. For far too long we have allowed the environmentalists to dictate policy and stagnate domestic energy growth. Every rational person knows America will be dependent on fossil fuels for decades. Yes, development of alternative energy forms and technology is important but there is no chance “green energy” is going to be a replacement for traditional energy sources, including nuclear power, any time soon. It is madness to exclude active development of domestic fossil fuel sources and nuclear power from our alternatives just to satisfy a few environmentalists with unproven science and questionable computer projections. If “green energy” was a viable economic solution, we would not need a policy or subsidies to support it. Also, independent of the longer-term cost benefits from domestic production, the extremely high and increasing risk of supply from the foreign sources is a very dangerous national security concern. The Middle East is in turmoil and no one knows how it will turn out. Without domestic alternatives, American could find itself with an energy disaster, which could seriously endanger our economy. We must actively develop domestic energy to create jobs in America, sustain our economy, and reduce our global supply risk.

Fifth, resolve our short and long term deficit and debt crises. We must get government spending and the dual debt and deficit crises under control (see “Bowles & Simpson Have it Right!”, “Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!”, “Is Obama Really Serious about Debt Reduction?”). Our Government is too big, too oppressive, and exercises too much control over the American people and business. The current policies are sucking money from business and taxpayers, adding more public sector union layers of government control, stifling business growth, and reducing America’s ability to grow and prosper. As stated above, in a free market economy with protection for the freedom of individuals and businesses, the private sector creates jobs. Since his election, Obama has expanded the size and scope of government control far beyond the level any freedom-minded citizen would have imagined possible. Simultaneously, Obama has also increased our federal deficit by $4 trillion and increased our national Debt by approximately 40% to $14.3 trillion. Relative to GDP the size of government has increased from approximately 20% of GDP to over 25.5% of GDP, a 5% increase in the size of government relative to our economy in less than three years. Without correction, our deficit next year is expected to be another $1.6 trillion and in ten years our national debt will grow to a staggering $22 trillion! Does anyone think this makes sense? My article last week, “Is Our Government Broken? – Redux!”, provides more information on this critical issue.

Sixth, pass the Free Trade Agreements for South Korea, Columbia, and Panama. These proposals go back to the Bush Administration and should be easy to pass. I believe nearly everyone including the President and many Democrats support them. As usual, politics is holding them up. Free trade works and provides value through additional products and services at lower costs to all American consumers. Only unions are opposed to free trade because, in the short term, it may reduce union jobs in non-competitive industries. Over 200 years ago, Adam Smith established the unchallenged principle that the wealth of a nation was based on the goods and services available to its citizens. Free trade allows this to work for the benefit of all consumers. It’s time for the unions to realize this and support what’s good for the nation over what’s good for the union.

Yes, we CAN solve our problems, if we have the political will to do so. This country was founded and prospered on the principles of individual freedom, free markets, sound fiscal and monetary policy, and limited government. Let’s get back to our foundations and demand that our elected representatives in government get to work.

The Old Guy PhD

The Tea Party – Patriots or Terrorists?

G’Day!

Members of The Tea Party ARE true American “Patriots” and definitely NOT “Terrorists” or “Racists” or “Crazies” or “Fanatics” as accused by liberal politicians! I am not a Tea Party member but am appalled by the inaccurate, unfounded, and demonstratively biased political attacks on them by the Obama Administration, Congressional Democrats, and segments of the Liberal Media. The ONLY reason for these attacks is that the Congressional members of the Tea Party movement are willing to stand up for our nation’s long-term constitutional principals of individual freedoms, free markets, sound fiscal and monetary policy, economic growth, and limited government. Congressional Tea Party members have NOT been willing to make the short-term compromises of these principles typically characteristic of our political representatives. GOOD FOR THEM! We need more elected members of Congress who are willing to take a stand for what is right for our country not for what is convenient for reelection or supportive of bigger and bigger federal bureaucracy and spending. Political compromise is not necessarily progress and, given our current fiscal and debt crises, is not in the long-term interests of the American people. OUR GOVERNMENT GROWTH IS OUT OF CONTROL, UNSUSTAINABLE, AND MUST BE STOPPED AND REVERSED! The Tea Party is trying to accomplish this.

So what is “The Tea Party” and why are Obama and the Democrats so terrified of them that they are aggressively engaging in political demagoguery in an attempt to discredit their positions and influence? First of all “The Tea Party” is not a political party (yet). The Tea Party is a “movement” by ordinary Americans of all parties who are fed up with the encroachment by federal government into our personal lives, our business commerce, and the inexorable increase in the magnitude of our government spending and debt. The Tea Party is trying to correct this, which is the primary reason the Obama Administration and Democrats with their tax and spend big government socialist policies are attacking them.

Perhaps the most accurate and concise summary of what The Tea Party stands for is on TheTeaParty.net website, which describes supporters as follows:

“The Tea Party movement is a grassroots movement of millions of like-minded Americans from all backgrounds and political parties. Tea Party members share similar core principles supporting the United States Constitution as the Founders intended, such as:

• Limited federal government• Individual freedoms• Personal responsibility• Free markets

• Returning political power to the states and the people

As a movement, The Tea Party is not a political party nor is looking to form a third political party any time soon. The Tea Party movement, is instead, about reforming all political parties and government so that the core principles of our Founding Fathers become, once again, the foundation upon which America stands.”

So what’s not to like? Who among true hard-working Americans willing to challenge forced dependency on government could object to these core principles? It is no wonder that Obama and the Democrats object to and attack them because The Tea Party’s core principles are diametrically opposed to those of Liberal Democrats. The Liberals are leading us down a path of less support for our Constitution, bigger federal government, greater government control over our lives, more regulation of what’s left of our free markets, more central power for the federal government and less freedoms for the states and the people. Contrary to the “Blame Game” against The Tea Party, the real “obstructionists” in government are Obama and the Congressional Democrats, who refuse to address the fundamental causes of our fiscal and debt crises, such as government growth and entitlement spending.

Let’s review a few of the activities Obama and Democrats have initiated in just the last two and one-half years. Since Obama was elected, Federal Government ANNUAL spending has increased “relatively” from 20% to 25% of GDP and “absolutely” from $2.9 trillion to $3.8 trillion, the ANNUAL deficit increased from $500 billion to 1.7 trillion, and our total National Debt has increased by 40% from $10 trillion to over $14 trillion (and an additional $2 trillion increase has just been authorized)! The Democrats in Congress have not passed a Federal Budget for over 800 days and have so far this year rejected all attempts by the Republicans to pass one for next year! The budget proposed by President Obama earlier this year continued his excessive government spending and added another $10 trillion in deficits and debt over ten years, (fortunately, both parties in Congress overwhelmingly rejected the President’s budget). Over the objections of a majority of the American people, they passed Obamacare and the Dodd-Frank Financial Regulations legislation, both of which add additional costs, additional regulations, and additional central control to our federal government. During a Congressional Recess without Senate approval, Obama appointed union activists to the National Labor Relations Board who have attacked Boeing’s implementation of a new non-union factory in Charleston, SC, (see “Attack on American Business by Obama “packed” NLRB!” and “Obama “packed” NLRB Continues Attack on Boeing & Free Markets!”) and the EPA under Lisa Jackson has stopped a Department of the Interior’s previously approved Shell Oil request to development a large oil reserve off the Alaskan coast, (see “Obama Administration Attacks American Business Again!”). They have allotted $27 billion for “Green Jobs”, which have not worked out well and have virtually shutdown oil and natural gas development (at a loss of thousands if not hundreds of thousands of good jobs). In summary, the obstructionist policies of Obama and the Democrats have produced a Congressional stalemate, hurt our economy, are stifling job growth, are hostile to business operations, and have increased our deficit and debt crises. What part of reckless and unsustainable spending, destructive regulations, and excessive government control of free markets and personal liberties don’t Liberal Democrats understand? It is no surprise that they feel threatened by The Tea Party.

Regarding taking responsibility and showing leadership, Obama has been demonstratively invisible. During his recent “Black Bus Tour” (in a bus made in Canada), Obama has blamed Bush, The Tea Party, Republicans, Congress in general, the earthquake in Japan, the Arab Spring, and the European Debt Crisis for our current economic problems. Never once did he admit or even suggest that his policies of irresponsible spending, uncontrolled borrowing, and increased federal regulation were part of the problem (see “Government Imposed Uncertainties Hurt Economic Growth!”). Other than the President’s outrageous budget proposal noted above and his endless generic campaign speeches, Obama has offered NO SPECIFIC PLAN to solve our economic problems and create jobs. Like Democrats in Congress he has been content to “kick-the-can-down-the-road”. Astounding behavior for the so-called leader of the free world! Again, it is no surprise that the President is afraid of the patriots in The Tea Party, who actually have a plan to get America back on track and are willing to take responsibility for it.

So, can we resolve our problems? In a previous article I outlined, six (6) specific suggestions, which I believe would improve our situation (see “Yes, We CAN Grow the Economy and Create Jobs!”). If our President and Congress are serious about solving our problems and restoring our economy, all of these suggestions could be accomplished quickly and all are consistent with the goals of The Tea Party. Overall, the message is to reverse the socialist movement toward a “nanny state”, get government off our backs, and return our country to the American people. Because most of my suggestions require reversal of Obama’s policies, it is unlikely that they can be pursued before the next election in 2012. Therefore, the 2012 election will be critical to our future as a great nation. Think about it and act accordingly!!

The Old Guy PhD