Friday, September 9, 2011
Third Stimulus Package Not a Charm
Third Stimulus Package Not a Charm
Commentary by Sanford D. Horn
September 9, 2011
The great patriot, statesman and inventor Benjamin Franklin is credited with the adage “haste makes waste.” Apparently Barack Obama is unfamiliar with that idiom as 18 times, the official count, during a 32 minute speech, Obama implored Congress to pass a jobs bill that will inject $447 billion into the economy, although he has not revealed from where the funds will magically materialize.
Thirty-two minutes of ego-maniacal bloviating will not solve the unemployment crisis in this country. Not only that, but to then tell Congress pass it now, pass it immediately, but to have to wait two weeks for more details is unconscionable. One speech two weeks from now with the details of how he intends to pay for it would have been sufficient. Quite frankly, any speech in the first place was unnecessary.
Yet, during his speech, Obama said he wants to see more products stamped “Made in America.” Hmm – his good pal Jeffery Immelt from GE has sent more and more jobs overseas to China, yet, there he was sitting with Michelle Obama. Actions speak louder than the disingenuous words Obama reads from the teleprompter. And adding insult to injury, Immelt is the head of Obama’s so-called jobs council. Sure, council on how to send more jobs overseas.
The oft-used mantra from Obama was in full throat when he called for corporations and the wealthy to “pay their fair share.” If I had a dime for every time Obama uttered this phrase I could retire and not worry about where my next paycheck would come from. Apparently Obama either never took the basic economics class I took in high school, or he was simply in one his pot-induced hazes during that semester.
The more businesses are taxed, two things typically happen – businesses employ fewer people and businesses pass the cost of the higher taxes on to the consumer. Because fewer people are hired, there are fewer people who can afford the goods or services provided by the aforementioned higher taxed businesses. Subsequently, those businesses produce less, thus the need to lay off even more employees. As revenues wane, so to do the taxes collected by the government – money that is now needed to pay the unemployment of the folks laid off because businesses were taxed more in the first place. It’s a vicious cycle that can be corrected.
When businesses are given tax breaks, they can hire more people, thus generating increased revenues for the company and the government. As more people are working, fewer people are dependent upon government and the increased revenue received by government can be used more productively to fix crumbling infrastructure – which also puts more people to work.
And when businesses expand, they contribute to the cost of infrastructure in the form of proffers to help build the necessary roads, sewage systems and even new schools. Because business is involved in the improved infrastructure, government needs less revenue and should be able to lower tax rates across the boards.
Now here is where government has a hard time. Instead of using the surplus for more useless government programs like research of the pickle at North Carolina State University, that money should reduce the deficit or give pay raises to the military. Then, the next step is to decrease the budget for the following year. Yes, spend less. Eliminate agencies that are counterproductive or redundant on one another, and likewise, with specific programs that are obsolete or also redundant of one another.
Note to government: the people can better spend their own money than government can spend the people’s money.
The answer to the unemployment crisis is not to continue throwing money at the situation. The tax cut proposals, of course, are a good idea – all tax reductions are welcome. The reduction of payroll taxes will enable employers to hire more people, thus taking them off the government dole. Coupled with the alleged stimulus portion of the bill must be concomitant spending cuts.
This was purely a political campaign speech in which Obama had his obsequious minions in the Congress lapping up his every word. Now it is up to the GOP House members to ensure this $447 billion boondoggle never sees the light of day. Have they not learned their lesson? With two failed stimuli, does anyone think the third time is the charm? Certainly not. This is the epitome of insanity – repeatedly doing the same thing over and over again, only expecting different results.
President Harry Truman had sign on his desk reading “The Buck Stops Here.” He took responsibility for his actions and didn’t lay blame elsewhere. Obama is passing the buck and he did so by directing his comments at the Republicans in Congress – a public goading by suggesting his proposals are bipartisan allowing Obama to lay the blame squarely on the Republicans if the bill is defeated.
This bill ought to be defeated if every dollar proposed in it is not matched with an equal amount of spending cuts – now. Not in 10 years as is being proposed, but now. There is no more time to pass the buck, or kick the can down the road as is so popular a phrase these days. The spending must stop now. All those who vote for this monstrosity, clearly did not learn from the failures of the first two stimuli packages, and should not be rewarded with reelection in 2012 – and the first out the door should be Obama.
Sanford D. Horn is a writer and educator living in Westfield, IN.