Lengthening the Recession

If we ignore the lessons of history, then we will be
condemned to repeat the mistakes.
Some mistakes made by Hoover and FDR were trying to keep
wages high and being protectionist. Obama and the
Democrats are doing exactly that. They raised the
minimum wage earlier this year. IBD today had several
examples today of protectionist policies.
It should be obvious that, if you have 5 employees and
$100,000 available for wages, and if wages increase to
$120,000, then you can no longer afford 5 employees!
Unemployment has exceeded the expected 8% and is 9.7%
and still going up. It averaged about 18% under FDR.
The US may have violated treaties like WTO and NAFTE
with the administration's protectionist policies.
Businesses are reluctant to rehire workers or expand
since they have been branded "greedy" and threatened
with increased taxes, assessments and surcharges,
mandatory benefits, unionization, pay control,VAT, etc.

U. S. Representative Joe Wilson

It is appropriate to challenge the POTUS when he is
lying to a world-wide audience. Wilson correctly
apologized for breaking a - rather stupid -
Congressional rule. To avoid vocal feedback like this,
speakers just need to tell the truth. Most viewers on
TV are uninformed while Congress knows a lie when they
hear it. Wilson did a courageous service for the TV
audience. He will suffer consequences since the Democrats
control the Congress. He will not get invited to the White
House any time soon either! But it is OK for Obama to say
that the police "acted stupidly" without knowing any facts....
Wilson should invite Obama over to his house for a beer to
discuss it!

Obama's Health Care Speech

Did he not say that it would be illegal not to have health
insurance? He compared health insurance to auto insurance.
People can choose not to drive or to buy the minimum (liability
only) insurance. How does that work with health insurance?

Those 8.4 million 18-25 year olds who consider themselves
indestructible and choose not to buy health insurance will
be subject to fines and imprisonment. Those 18 million who
can afford health insurance, but choose not pay for it
because they can self insure, also will be subject to fines
and imprisonment.
Because these 26.4 million will be new policies, the Federal
government will tax the insurance companies. Isn't this an
indirect tax on the individuals who Obama promised no tax
increases?

Did he not say that it would be illegal for an insurance
company to deny coverage due to a pre-existing condition or
an existing illness? Assuming the punishment will be fines
and/or imprisonment, doesn't this interfere with the way the
insurance industry balances risk with higher premiums?

Did he not say that illegal aliens would not be covered under
his health reform? Who will pay for their Emergency Room
visits?

Did he not say that the reductions to Medicare and Medicaid
would be put back by stopping fraud and abuse? Why has that
not been done since the inception in the 1960s?

Obama's school speech

If the kids only remember to take personal responsibility
and that there is no excuse for not trying, then the speech
was worth the effort.
If everyone got the message that education is the
Constitutional responsibility of the Federal government,
then the speech did more harm than good. Those folks
who have read the Bible know that the education of
children is the responsibility of parents. Our founding
fathers knew that.
The pure form is home schooling. The next level is using
trained teachers who will faithfully follow the wishes of
the parents. Only when these options are not available
should parents give their children to the government to
educate and indoctrinate for 40 hours per week.
True conservatives - not neo-cons like GW Bush - have read
the Constitution, and were distressed when Carter created
two new bureaucracies with the Departments of Education
and Energy. Part of the conservative agenda was to abolish
these and return power to the people in these areas.

Labor Day

The labor leaders blame the problems on corporate greed.
Management blames the problems on the high costs of labor -
particularly health and retirement benefits. At the same time,
Japan was producing higher quality cars and trucks because of
our own Dr. Deming. American MBA schools ignored his
statistical quality control ideas.
Labor wants to keep the high wages and have taxpayers
cover the health and retirement benefits. What they don't
tell you is that there are non-union, American auto workers
who are paid well but much less than UAW workers when
the total cost of labor is considered. The Federal
government's solution to failed business is for the taxpayer
to buy the failed business.
In 1970, Future Shock, warned that the industrial age was
maturing and that automation would free many industrial
- as it had for agricultural - workers to be service and
information workers. Most industrial workers ignored the
warning because they would have to take a serious cut in
pay to retrain and take the jobs which the economy was
creating. The UAW was paying 95% of a worker's pay to UAW
workers whenever they were laid off. Even with the deep
pockets of the taxpayers, the UAW can not afford to do that.
The taxpayers were supposed to pick up the tab for UAW
workers' health and retirement benefits, but most are not
willing to do that.The unemployment rate is now 9.7%
We are deeply in debt and subject to the whims of our
creditors like China and Japan. Our graduates of
government schools are ill-prepared to compete in the
global economy. Obama will tax small business with
both hidden taxes like the VAT and a 5.4% surcharge
on any business making more than $1M. Cap and trade will
increase the cost of doing business. Small business will
have to lay off workers. We will be in recession
or slow growth mode until capitalism returns.
For the solution, see my heisrisen2009 blog.

Forgotten items

Why is tax reform a forgotten item? The Fair Tax would have
solved many of the problems we now see as tax scandals. It would
also really stimulate the economy.
What about illegal immigration? The number of new illegals has
decreased since the recession started, but the problem has not gone
away. Every day that Congress ignores this exacerbates the problem.
A small part of the solution is for Congress to clarify the 14th
amendment with a simple bill (you spent $2 billion with a 2 page
bill to extend the clunker bill):

Citizenship shall not be granted on the basis of an illegal act.

Obviously - to me - the 1868 amendment was not meant to confer
citizenship to babies of illegals. Congress can fix this, but every day
makes the problem worse, because they will not renege on
citizenship already granted. These "anchor babies" then give an
excuse to grant citizenship to the extended family. All of these will
cut in line in front of those who request citizenship through legal
means.

The Lack of an Energy Policy

Since the "oil crisis" of the 1970s it has been clear that the USA did
not have a reasonable and complete energy policy.
We have operated on the GOBEP, good old boy energy policy, which
rewards the supporters of those in power.
T. Boone Pickens has proposed using windpower in the midwest
corridor from Texas to North Dakota to produce electricity and
using natural gas to power internal combustion vehicles. Will he
make money if his policy is implemented? Absolutely!
Natural gas prices are the lowest since 2002. Anyone - normally
trucking firms and cities who are converting their truck fleets by
attrition - who has implemented the plan is saving money.
Pickens wants taxpayers to modernize the distribution grid for
electricity in America.
The USA is still importing over 9 million barrels of oil each day at
over $70/barrel. Approximately $630 million of American capital
is transferred to foreigners - many who hate us - each day!
Our own government is preventing the development of domestic
resources.