The President challenged the Congress to work with him on creating job training programs, lower mortgage financing, reduced interest student loans, as well as a renewed focus on manufacturing jobs and, of course, repair work on our national infrastructure (roads and bridges). All this might sound good except he plans to do it with money that we, as a nation, do not have in the first place. Here we go again with more federal spending and more federal borrowing all based on the premise of “fixing the economy”. That premise is flawed for several reasons but one most significantly jumps off the page at us. Of course, the President would never notice it for his form of economics does not include such beliefs.
Why “flawed” you might ask? The concept is flawed in terms of job creations for a myriad of reasons. In the first place, the government has no power or ability to create any real jobs. Jobs are a product of the “private sector business” on which most of our economy runs. In fact, the private sector is the centerpiece of that formula. Neither Obama nor anyone else in government can expect to put the government at the center of the economic structure, make a few proclamations while throwing a little money around, and expect it to have any lasting effects.
Jobs exist, first and foremost, because there is a perceived business need for them within the entity that is doing the hiring. That perception results from economic growth and planned expansion by businesses that are seeing growth in the economy and want a larger share of the pie. The government can stifle this process to no end with an overload of taxes and regulations but it can do little in terms of creating the jobs except to get out of the way and let the economy drive itself. That is never going to happen with Obama because it takes the centralized focus and power away from the federal government. In Obama’s mind, the private sector in America is doing fine…he has said so. If that is the case then what we presently have is what it is in summation and nothing more…”what you see is what the government produces in terms of jobs”. No urging by the government is going to change that position.
The President cited the need for the government to sponsor job-training programs as if to suggest that plenty of jobs exist out there for the taking if the proper training is received…a flawed conclusion. The fears associated with ObamaCare meshed with the lagging consumer confidence which is driven in great part by the price of fuel is working against a growing marketplace and a natural occurrence of jobs. Here we have the suggestion that we use taxpayer dollars to train a bunch of folks for jobs which do not exist. What would you bet that Obama knows just exactly who could do that for the nation? In addition, we have the mid-term 2014 elections coming up which, with a shift in the majorities in the House, could throw the doors wide-open on higher taxes on American industry. Those taxes end up on the back of consumers with higher product prices on the shelf and at the pumps. The process then gets worse and not better yet there we are paying folks to train others for jobs.
The President beats the drum for higher and higher minimum wage levels yet expects industry to shoulder the burden and continue to offer more and more jobs because the federal government is training people for the task. Industry can do that...pay more, hire more, etc. provided the American consumer can pay more for the products produced to cover the associated expenses. Instead, industry would rather hire less people and keep their payroll in check until more confident times arrive. Obama wants to flip some levers and switches and think that he has opened the flood gate for economic recovery when all he is really doing is wasting taxpayer dollars and borrowing more money.
If lower-interest mortgages are going to be good for the economic growth, then why not have the government finance everyone’s home for zero interest? The same holds true with student loans. Moving the interest rate downward on a student loan does not play to the primary reason that students are in college. If it did, they would not spend as much as they are spending by borrowing money which covers every conceivable expense they can associate with college to include housing and automobiles. It only ups the ante in terms of how much they are willing to borrow. Of course, lower-rate loans can be sold as an avenue to higher education for some and the path to a better job, but, where are the better jobs now? The answer is “hard to find for new college grad and that will only become more difficult if more people graduate and the job market continues to lag”. Oh yeah…great strategy for economic growth…more like welfare growth in reality.
How many times have you driven down the highway and looked up and saw a decal on the back of a tractor-trailer that says something to the effect that “this vehicle pays over $8,000 in highway taxes per year”? There are plenty of them out there touting that fact. Multiply that figure by approximately 1.8 million heavy-duty Class-8 tractors on the road and it derives a figure of almost $14.5 billion dollars in tax revenue. This does not include auto fuel tax and the many other smaller commercial vehicles on the road. Do you really believe that we are currently spending that money on the infrastructure? I seriously doubt it but you can be assured that the money is being spent on something and the only way to get more money for the infrastructure will be to raise taxes or borrow money. Apparently the President believes that the vast majority of people out of work in America are qualified to work in the construction business. In actuality, what he knows is that more government spending on infrastructure would be a big shot in the arm for his cronies in the construction trade unions who are already earning a good living milking government infrastructure contracts…nothing new there.
This is just another opportunity for the President to beat the drum and demand to employ his Keynesian Economic Theory…a flawed and failed system of economics that puts government at the center of all economic growth and development through subsidizing. Government is the creator of all things! Ultimately, the only thing that grows from it is that bloated pig of a federal government that we have already created in this country…the one that is feeding heavily off of its growing power over the people…something Obama lives for every single day.
Beyond this poser’s efforts to focus on the economy for the good of the nation lies the real agenda for Obama. First, the Zimmerman distraction is reaching a lull which can no longer sustain the distraction from those “phony scandals” like Benghazi, the IRS, the NSA, and Fast ‘n Furious. The administration cannot afford for the focus to move back in that direction which only shores up the legitimacy of all of the scandals which he has proclaimed as “phony”. Secondly, it starts fanning the flames leading up to the mid-term elections in an attempt to paint the Republicans in a negative, uncooperative light in terms of the economy, and threatens them with a loss of their majority base in the House. As with anything concerning Obama, the purpose here is “self-serving” and has nothing to do with the welfare of the nation or the American people in a positive sense.
As long as this nation continues to pursue the suggested path which Obama offers up in his plastic compassionate terms, we will be crafting our own demise as a country. He knows that as sure as he knows his middle name. He also knows that this nation cannot be transformed into the dream that he envisions without breaking the financial back and the spirit of the middle-income wage-earners in this country…the last bastion of resistance. Those in poverty have no skin in the game except the risk of losing the handouts which Obama has so generously offered in his tenure. The rich always have options thus they are not a real concern in the formula. It is the working-class men and women of America that drive the economic engine…break their spirit and we are done.
I leave you with one last thought…how can a President who has established an all-out attack on coal and energy expect that anyone in the manufacturing business would want to set up shop here? Ask yourselves…are the scandals phony or is the President a phony?
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