Do I detect a hint of double speak here, which no doubt will outrage the progressive netroots? Obama can't understand why a recent quarterly Bloomberg poll of American financial analysts and investors showed 77% consider him anti-business and a comparable number express little or no confidence in his ability to cope with the ongoing economic crisis (with the next bad news apparently commercial real estate). He claims he's "fundamentally business-friendly" and "fierce" defender of the free market and doesn't "begrudge people success or wealth".
Yeah, right. This is the same guy whom has repeatedly railed against "fat cat bankers" and "Wall Street greed"; he has threatened penalties or mandates on company payrolls (e.g., health care "reform"), energy tax increases (cap-and-trade), wants to limit how big banks can get and further regulate a financial services industry already highly regulated, wants to eliminate a "loophole" which allows companies to defer taxes on foreign profits as long as it remained invested overseas (this is an incentive to protect American profits overseas), and a new "big bank" tax (even after they paid off TARP loans with interest). What about the facts that he has made no progress on new free trade pacts (including South Korea and Colombia) negotiated some time before Bush left office), refuses to consider lowering the business high tax rate (which would make it more profitable for companies, domestic or foreign, to invest in America and American jobs), and he has openly pushed not only to ensure a year-end income and investment tax hike on the upper two tax brackets, but to further limit deductions available for those Americans? Where were the business tax credits (other than politically favored businesses, e.g., in infrastructure or green energy)? What about the way bondholders got short-changed in favor of lower-standing unions during the auto industry reorganizations? What about massive federal deficits funded in competition with private-sector investment capital?
No, I expect Obama, in all his egotistical splendor, sincerely believes that if he simply finds a new way to communicate his anti-business agenda, investors and business will capitulate to his point of view, just as surely as the American people would back his health care "reform".
No, Mr. President, it will take more than toned-down, state-of-denial rhetoric or an occasional meeting with House Republicans or the occasional bipartisan photo op at the White House. Talk is cheap; actions speak louder than "words, just words..." You want policy improvements for the economy? Simple: chop the top business income tax bracket to 25%; defer action on health care and cap-and-trade until we are at full employment; permanently cut business payroll tax burden; extend the Bush tax cuts for 2 more years; defer action on expansions of mandates and regulatory cost burden; shift tax burden more towards consumption, away from saving and investment; stop picking winners and losers with narrowly vs broad-based tax cuts/credits.
International Miscellany
- Iran declared itself a nuclear state. It announced initial production of a small amount of 20% enriched uranium, of sufficient strength for use in a nuclear power reactor [roughly 90% enrichment is needed for weapon-grade materials]. The international community, short of China (which has business and oil supply ties to the Tehran regime), is worried about a nuclear-armed Iran, which may trigger a nuclear race in the Gulf region, not to mention a possible preemptive attack (if diplomacy fails) by Israel, which considers Iran an existential threat. On another front, yesterday's celebration of the so-called Islamic Revolution was marked by protests by opposition Green revolutionaries, intimidated by nearly a dozen executions of opposition leaders or participants since last spring/summer's protests, paintball and tear gas attacks by government forces, and communications among the opposition hampered by state restrictions. Let us hope that the dreams of Neda Soltani and other murdered Iranian patriots will be fulfilled one day.
- I haven't discussed the Greek financial crisis which have roiled the global financial markets over the last few weeks. Greece has an estimated 2009 GDP of $338B, but a national debt of about $414B, which is roughly 123%. The 2009 American GDP is estimated at $14.3T, and a federal national debt of $11.9T. (Estimated state/local is $2.9T.) Thus, the combined government debt already amounts to roughly 104%. Greece's fiscal woes are against European Union guidelines, with Greek debt being downgraded (i.e., higher interest rates), and the result could be a correction against the euro. Greece has had to resort to a number of unpopular austerity measures, including pushing out retirement age for pensions by two years, cuts in crop subsidies, public sector pay cuts, and a variety of consumer taxes. Take into account the progressive "don't worry--be happy" Democrats, constantly worrying about the fairness of the federal tax system for the bottom 40% of wage earners, whom are expected to pay market price for a carton of eggs, but not a penny towards government goods and services. Isn't it nice to know that those thrifty Democrats in the "Recovery [so-called stimulus] Act" made it possible for Polk County Florida parents (of disabled kids) to get $350K worth of complimentary iPod's as a reward for completing a short online survey? All those workers in China making the iPod's (and $5.4 billionaire Apple CEO Steve Jobs) thank you.... The Democrats want to make the GOP or conservatives appear to be the "party of no"? I think the American people will reward those politicians this fall whom said 'no' to drunken-sailor spending and massive government growth. It's time for America to elect politicians willing to make the tough decisions to bring down the cost of government, before we end up being forced to do what Greece is having to do today for kicking the can down the road....
Sammi Smith, "Help Me Make It Through the Night"
Johnny Cash, "Sunday Morning Coming Down"
Janis Joplin, "Me and Bobby McGee"
