Obama’s "Stimuless" Fleeces You to Pamper Bureaucrats

Tom Pauken, Texas Workforce Commission

The Financial Times recently reported these dismal figures for private sector hiring: “Since the stimulus began, about 400,000 public sector jobs have been added (through May 2010) while 2.7 million private sector jobs were lost.” The National Federation of Independent Business (NFIB) has a study showing that small businesses in the United States lost jobs in twelve of the last fourteen months. What is equally disturbing in the NFIB survey is that its small business members have no plans to increase hiring in the foreseeable future. Considering that small businesses are responsible for the creation of a majority of new private sector jobs, this is particularly worrisome.
One group of employees, however, continues to do well even in these difficult recessionary times. Federal employment has increased by 225,000 since President Obama took office. Moreover, according to USA TODAY, federal workers now earn more than twice as much as employees in the private sector doing comparable jobs.

For every other sector of the American economy, unemployment remains high, and those who have gone back to work after losing their jobs in this recession often are making less than they were before. The U.S. Bureau of Labor Statistics reports that 46 percent of the unemployed have been out of work for 27 weeks or longer. Economist Martin Hutchison notes that long-term unemployment in the U.S. “has reached levels not seen since World War II.”

All of this data should make it clear to most Americans that the so-called stimulus programs aren’t helping to get Americans back to work. The thrust of these various government spending packages has been to encourage the American consumer to spend more as a means to get us out of this recession. The problem with this approach is that, if the consumer is worried about holding a job, keeping a business going, making mortgage payments on a house, or paying down credit card debt, he or she is going to spend less and save more – which is precisely what is happening.

That’s why consumer confidence continues to remain weak. In fact, the latest consumer index from the Conference Board for July states that “confidence had hit a five-month low,” down to near the 50 percent range.  It was at the 100 percent level a little less than three years ago.

Scott Burns had it right in a recent column in which he warned of “the idea that government could stimulate demand with deficit spending.” Burns quotes economist Lacy Hunt: “Deficit spending, rather than energizing the economy, is debilitating it. Worse, after the spending is done, the private sector has to service the new debt.”

If the current policies aren’t effective in putting Americans back to work, then what should we do instead? The key is to provide incentives to get the private sector moving again similar to what we did with the Congressional passage of the Kemp-Roth Job Creation Act in 1981 during President Ronald Reagan’s first term in office. The economic circumstances are different than what we faced back then (government debt is a lot higher), but the concept is similar: How do we encourage savings and capital investment in order to create jobs here in the United States?  I would submit that the best way to do that is to replace our corporate tax system and its 35 percent tax rate with an 8 percent revenue-neutral, business consumption tax. That tax would be applicable on goods and services coming into the U.S., while U.S. exports would get a comparable tax credit. This gets rid of our onerous tax on businesses operating here in the U.S., while leveling the playing field with our trading competitors who currently enjoy a huge trade advantage over American exporters.

Adopting a business consumption tax to replace our current system would reduce the outsourcing of American jobs, encourage long-term investment in U.S. businesses, rebuild our manufacturing base, reduce our trade deficits, and put business owners back in charge of the American economy.

This is a real economic stimulus plan to get Americans back to work.

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6 Responses to Obama’s "Stimuless" Fleeces You to Pamper Bureaucrats

  1. Pingback: Tweets that mention Obama’s “Stimuless” Fleeces You to Pamper Bureaucrats | Impeach Obama Campaign -- Topsy.com

  2. john says:

    you cannot write more checks than the money that you have in the bank on deposit. To continue this act/ acts of irresponsible spending gets you put in jail. nobama and his cohorts all want you to believe that the government is an entity like " The Tooth Fairy " where you get something for nothing useful. The money magically appears, they print more and the party goes on. When you have to borrow more than you make or produce, one day you are going to run out of OTHER PEOPLE'S MONEY. nobama and his wife and lots and lots and lots of "closest friends" are out there spending you money like a pimp with a stolen credit card ( apologies to all real pimps )

  3. Raymond says:

    Pedophilia was not only practiced by Muhammad but also sanctioned by the Quran.
    In its discussion of the waiting period required to determine if a wife is pregnant
    before divorce, the sacred text says if you are in doubt concerning those of your
    wives who have ceased menstruating, know that their waiting period shall be three
    months. The same shall apply to those who have not yet menstruated ?(65:4).
    Those who think that modern Muslims have abandoned this teaching should study
    the pictures and videos that accompany this article and recall the words of Ayatollah
    Khomeini, the most famous Islamic cleric of the 20th Century: A man can have sexual
    pleasure from a child as young as a baby. However, he should not penetrate; sodomizing
    the child is OK. If a man penetrates and damages the child, then he should be responsible
    for her subsistence all her life. This girl, however, does not count as one of his four
    permanent wives. The man will not be eligible to marry the girl's sister. . . It is better
    for a girl to marry in such a time when she would begin menstruation at her husband's
    house rather than her father's house. Any father marrying his daughter so young will
    have a permanent place in heaven.[7]

  4. Raymond says:

    Clinton is on the beach at Martha's Vinyard and finds that an old bottle has washed ashore. When the Prez opens it a very wan Genie snakes out.

    Genie: Hi Bill. I'm a very weak genie, so I can only grant you one wish–it had better be easy if you want me to do it.

    Clinton: I pray for world peace. Give me that.

    Genie: That's a little hard, give me something easier.

    Clinton: Make Hillary into the most beautiful woman in the world?

    Genie: World peace it is.

  5. dvdrf says:

    I read in our local paper $18 million has been spent for job placement and they not only can't account for it' they don't even know if it's done any good.
    From what I've heard, much of the money locally has gone into "stuff" like computers, refrigerators, cabinets, etc – all this without one job being generated or any one placed on a job. The few jobs we have now are replacement in "production labor", not in "high tech." positions. So much for a flourishing economy.

  6. Pingback: Reagan’s Stimulus vs. Obama’s “Stimulus”

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