Posted tagged ‘small businesses’

Obama Plans to Slash the Federal Deficit in Half

February 22, 2009

Hey America, watch me pull a rabbit out of my hat!

obama_hat_trick1

Tuesday night, February 24th, President Obama will address a joint session of Congress and is expected to lay out his plan to cut the federal deficit in half by the end of his first term.

This ought to be good. I’ll be parked in front of C-Span with my popcorn because this speech is guaranteed to be good for some laughs. I really want to know how the man who spent nearly a trillion dollars we don’t have earlier in the week thinks he can cut the deficit in half along with “plans to broaden health care coverage to eventually insure everyone. Moving the country toward greener energy sources. Expanding education opportunities. Overhauling financial industry regulation“.

I want to know how a man who a few short months ago said deficits don’t matter can now say “We can’t generate sustained growth without getting our deficits under control,” with a straight face.

It will all be just a lot of hot air, I’m sure since the plan rests “on the assumption that the economy recovers from the current slump” and does not consider “additional spending on economic stimulus or bailouts of the financial or other sectors“.

Where will the money come from? “Winding down the war” in Iraq, eliminating Bush’s tax cuts on families earning more than $250,000 a year (raising their tax rate from 35% to 39.6%), increasing the capital gains tax by 5%, closing corporate tax “loopholes” and taxing the earnings of hedge fund managers as normal income rather than as capital gains. 

Not mentioned, of course, is that while “winding down” in Iraq, Obama is “winding up” in Afghanistan and Pakistan. Obama authorized 17,500 additional troops to Afghanistan just a few days ago and The Raw Story reported yesterday that Obama is expanding miliary operations in Pakistan.

There is also no mention of how businesses – especially small businesses – might be able to create jobs when suddenly faced with a much higher tax bill. Common sense says higher taxes will lead to more layoffs and more businesses closing down completely.

Obamanomics. It will make you laugh till you cry.

Obama’s Bailout Promises

February 1, 2009

President Barack Obama on Saturday promised to lower mortgage costs, offer job-creating loans for small businesses, get credit flowing and rein in free-spending executives as he readies a new road map for spending billions from the second installment of the financial rescue plan.

The White House is deciding how to structure the remaining half of the $700 billion that Congress approved last year to save financial institutions and lenders. An announcement was possible as early as this coming week on an approach that would use a range of tools to unfreeze credit, helping families and businesses.

At the end of a week that saw hundreds of thousands of people lose their jobs, Obama also used his Saturday radio and Internet address to tell that nation that “no one bill, no matter how comprehensive, can cure what ails our economy.”

[emphasis added]

Continue reading…

Actually, Mr. Obama, I can think of one bill that would have gone a lot further in the right direction than anything the government has done or is planning so far…

H.R. 2755: Federal Reserve Board Abolition Act

To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.

But since Congress doesn’t seem to have the intelligence or courage to do anything about the Fed, we’ll have to deal with the futile efforts it is willing to take.

Considering the promises made by Mr. Obama today, futile is indeed the correct word. Lower mortgage costs and “flowing credit”  will not help people who have lost their jobs or fear losing their jobs soon, sir. Small businesses will not be able to create enough jobs to replace the millions already lost, even if they were willing to risk taking out loans in such a volatile economy.

I sometimes wonder just how disconnected from reality the people running this country actually are.