Tag-Archive for » Spending «

Aug
28

Mona CharenPresident Obama has a weakness for thinking in categories — compartmentalizing. For someone who provokes swoons among liberals for his great intellect, he has repeatedly evidenced an unsophisticated, one might even say simple-minded, view of the world: Workers good; bosses exploitative. Borrowers good; lenders bad. Patients good; insurance companies bad. Again and again, the president and his spokesmen have justified their expansions of government power as efforts to help those who "through no fault of their own" find themselves in difficulties.

Most politicians drag this "I'll take care of you" rhetoric out during campaigns, but Obama has institutionalized it in policy.He has a veritable Ph.D (piled high and deep) degree in it.

One of those piles — the Home Affordable Modification Program — was a total failure.

Recall that in February 2009, President Obama proposed to solve a "crisis unlike we've ever known." It wasn't, the president insisted, that anyone had made poor decisions — [of course not - let's not confuse the people with "accountability" here].

"It begins with a young family … They save up … They choose a home that feels like the perfect place to start a life. They secure a fixed-rate mortgage at a reasonable rate, and they make a down payment, and they make their mortgage payments each month. They are as responsible as anyone could ask them to be." But then someone loses a job, a spouse has his or her hours cut, or a child becomes sick.

Um, isn't that called "Life"?  Life happens as a result of the decisions we make. Such a simple concept which frees us because we know we are in charge of our lives. Don't like your circumstances? Make different choices.

We live on the planet Earth, not in a bubble. One cannot protect people from"Life" — or their decisions — or the consequences of such decisions.

Neil Barofsky, the special inspector general for the Troubled Assets Relief Program (SIGTARP for those who speak Washingtonese) blasted the program in a July report:

"Treasury's refusal to provide meaningful goals for this important program is a fundamental failure of transparency and accountability that makes it far more difficult for the American people and their representatives in Congress to assess whether the program's benefits are worth its very substantial cost.

"The American people are essentially being asked to shoulder an additional $50 billion of national debt without being told, more than 16 months after the program's announcement, how many people Treasury hopes to actually help stay in their homes as a result of these expenditures, how many people are intended to be helped through other subprograms, and how the program is performing against those expectations and goals. Without such clearly defined standards, positive comments regarding the progress or success of HAMP are simply not credible, and the growing public suspicion that the program is an outright failure will continue to spread.

In contrast to the Obama morality play, the foreclosure crisis was not a conspiracy of the rich and powerful against dutiful homeowners reliably making their monthly payments. It was the result of multiple stupidity by government, bankers, and individuals. Obama's instinct to insulate people from the consequences of their bad decisions (and yes, sometimes bad luck) amounts to subsidizing failure. The results are coming in daily — persistent high unemployment, an anemic recovery, and billions upon billions of wasted taxpayer's money.

– based upon article by Mona Charen

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Aug
19

Larry ElderObama is a community organizer, a person who, by definition, wants government to do more, not less. Obama rails against the "greed" of capitalism and believes that "at a certain point, you've made enough money." He urges higher taxes on the rich to "spread the wealth." He admits that higher capital gains taxes actually produce less revenue but supports a hike so that the rich pay a higher percentage — a matter of "fairness." He doesn't understand that government subsidization of the housing market — through Fannie Mae, Freddie Mac, the Federal Housing Administration and the Community Reinvestment Act — sparked the running on emptyunsustainable run-up in home prices. He ignores the consensus among economists and says, "The American dream … means that we raise the minimum wage not just every 10 years, but all the time."

"Every economist who's looked at it," said President Obama, "says that the Recovery Act has done its job." This is true — except for all the economists who think it failed.

Townhall

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Aug
10

Greedy Government Greedy Obama

When Obama is not blaming George Bush for his troubles, it is those Evil, Greedy Corporations who are at fault for whatever.

But listen to why Bogen Communications is not hiring:

My company has to write checks for $74,000 so Sally can receive her nominal $59,000 in base pay. Health insurance is a big, added cost: While Sally pays nearly $2,400 for coverage, my company pays the rest — $9,561 for employee/spouse medical and dental. We also provide company-paid life and other insurance premiums amounting to $153. Altogether, company-paid benefits add $9,714 to the cost of employing Sally.

Then the federal and state governments want a little something extra. They take $56 for federal unemployment coverage, $149 for disability insurance, $300 for workers' comp and $505 for state unemployment insurance. Finally, the feds make me pay $856 for Sally's Medicare and $3,661 for her Social Security.

When you add it all up, it costs $74,000 to put $44,000 in Sally's pocket and to give her $12,000 in benefits. Bottom line: Governments impose a 33% surtax on Sally's job each year.

Because my company has been conscripted by the government and forced to serve as a tax collector, we have lost control of a big chunk of our cost structure. Tax increases, whether cloaked as changes in unemployment or disability insurance, Medicare increases or in any other form can dramatically alter our financial situation. With government spending and deficits growing as fast as they have been, you know that more tax increases are coming — for my company, and even for Sally too.

— Michael P. Fleischer, president of Bogen Communications Inc. in Ramsey, N.J.

So who is really the Greedy one here?

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Jul
06

Many say that the situation in Greece is a harbinger of what is coming to the United States. They are right. But first it will come to states like New York, California and Michigan that have spent foolishly and are deeply in debt.

The problems in these states have been papered over by federal aid. Essentially, Washington has relieved these states (and the local governments they fund) of their constitutional obligations to balance their budgets by giving them welfare checks in the nick of time. Obama now seeks to pass $50 billion in additional welfare to the states.

But all this does is enable the states to go more deeply into the red since they are not cutting spending.

As these deficits mount, bondholders will get more and more nervous. Eventually, they will realize that the less solvent states are bankrupt and will refuse to buy their debt. Eyes in Sacramento, Lansing and Albany will turn helplessly to Washington to guarantee their debt, just as Athens turns to Berlin.

Republicans, if they control either or both Houses, should stand firm and insist that these states sink or swim on their own. America's taxpayers will not take kindly to having to bail out other states — or even their own — to pay for years of reckless spending.

The money will run out. States, school boards and localities will stop sending out checks. Emergency state funding may keep schools open, prisons locked and police and fire services running, but otherwise all hell will break loose.

We must free our local governments from the stranglehold of municipal unions, their rigid work rules and their unaffordable pensions.

Dick Morris.com

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May
07

Obama and Biden have clearly stated (esp the latter) that we can spend our way out of a recession.

That's not sound economic theory,  it's political bullshit.

Greece is rioting — but what for? There is no money to keep the extravagances they (the unions) have become used to. They want to keep retirements at age 53 with full pay and benefits for example. It all too expensive to fund.  Is setting things on fire going to magically produce money-growing trees?

There is no money. What part of "there is no money" do they not understand?

Get a grip and get a job!

Three people died.

Take heart and a warning America and Unions! We can no longer fund your crap either.

If you make $200, you cannot spend $300.  If someone in your home loses a job, you cut back all spending. Duh.  You can't spend what you do not have.

What part of "there is no money" do you not understand?

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Mar
13

greece Riots

 

Over 60,000 protesters took to the streets in Greece to protest the coming budget cuts, and it didn't take long for it to turn violent. Riot police tried to contain the crowds and avoid the homemade bombs being tossed everywhere.

Cars and stores were burned by protesters who were largely anarchists — and union members. Gee, that was helpful.  SEE STORY

Since we are doing the exact same things Greece has been doing (spending what we do not have) – why should we expect a different result?

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