Well I just got done reading the latest article by pretend economist Paul Krugman where he points out the lack of economic honesty by the Romney campaign when it comes to the economy and when job loses took place. I have to say the Krugman got one thing right in this article and that is the Bush Administration is at fault with causing the economic depression we are in but Obama has to take the blame as well. Do I think that Mitt Romney is going be the savor if he is elected President? No, he will continue the same bad ideas that have gone on for over 12 years and will most likely add his own signature to the failed ideas of the past. We can go into the history of George Bush’s failings as a President another day but today we will focus on what actions by Barack Obama prolong and expand the economic hardship of the country.
We will first take a look at one or two of his votes as a Senator that lead to mismanagement of funds, bureaucratic road blocks to job creation and the devaluation of the American wage through dollar inflation. First we have his vote to increase the minimum wage from $5.15 to $7.25 an hour which causes several problems that lead to an increase in unemployment. First the increase in the minimum wage forces employers to pay more for unskilled workers who would benefit from these first jobs in order to learn necessary skills to move of the economic ladder. This about it if you are a small business and you have someone who just graduated high school and never worked before and someone who has worked before but is applying for the same position. The employer would more than likely hire the worker who has acquired skills from previous work experience over the unskilled as they are getting a better investment for their dollar. If there wasn’t a minimum wage the employer could employ both people one for a more skilled work and one for entry-level employment at a lower wage that the employer and the employee agree upon. The argument that the person who is making less than minimum wage would not be able survive is placing blame on the wrong area of the problem. The problem isn’t that folks are not getting paid a fair amount for their labor the problem is the money the receive is constantly losing purchasing power. One part of the problem is that Congress who holds the purse strings has not held the budget in check with its ability to vote no on debt ceiling increase. In 2006 Obama did something that he should be proud of, he voted against the increase of the National Debt ceiling. He now as it states in a news article linked here, regrets voting against the debt ceiling. I am assuming he now wants the rubber stamp in perpetuity when it comes to debt ceilings.
Maybe Kruman had amnesia as he didn’t mention the destructive nature of the Banker Bailout that Obama voted for when he was still running for President. This was touted as a way to free up lending so that small businesses could get back to manufacturing but this did not happen as the banks did not lend and small businesses which live in the real world knew it would be a waste of time. The bill also cost tax payers much more than the $700 billion price tag it was sold. Despite huge opposition by the American public to not reward bad decisions of Wall Street Congress went ahead and approved this bill anyway.
Well we can now get to the Presidential decisions he took part in that have led to increased joblessness as well as prolonging the depression we are currently facing. While Obama did not start the snowball effect of increasing the debt ceiling he has not done anything to stop this runaway train that is compounding interest. This increase in debt has called for the increasing of dollar creation to export this debt which demise the value of the dollar you earn, your employer earns, and leads to the layoffs and shipping of jobs to cheaper labor markets nationally and internationally.
Another bill issue that has led to a lagging growth of jobs is the Health Care Bill that was signed into law last year and will go into effect unless stopped in 2014. The Health Care Reform Act takes a failed system and makes it even worst. You can read my article on health care in this country and why it has failed for so long at Independent Voter Network. The regulations that have yet to be written yet and will come into focus after the law if upheld go into effect. Now I don’t know about you but I prefer to know the rules of a game before I participate. This is like playing high stakes poker under vague guidelines and allowing the house to write the hard rules as the game is played out. Who in their right mind would want to take part in such an unfair system. Yet, this is what businesses in the US are forced to do if they want to expand and hire new folks. In addition to the Health Care Bill highest corporate tax rates in the world is now a the honor of the United States. Now this can not be blames on Obama but he has offered no solutions and had even attempted to add new taxes such as the Buffet Rule which thankfully was struck down. But, we still have the real possibility of what are termed as the Bush Tax cuts being eliminated at the end of the year if not extended. These cuts are termed as tax cuts for the “rich”. Now I don’t know about you but I am sure you and I have different views of what is considered monetary rich as I am sure most Americans have their own interpretations. A lot has to do with where you are economically, what part of the country you live in and as such what the cost of living is in that area. An easy example is a person who makes $250,000 in San Fransisco would be middle class. This person would be able to rent an apartment or own a tiny condo and live the same type of lifestyle that a person who earns $50,000 in North East PA. But if you took that $200,000 salary on NE PA that person would be upper middle class. Still not rich but doing well enough to be comfortable and be able to put money away for retirement. The point is the government and a small group of people can not determine who is rich and is not based strictly on numbers. This is why a free market is superior to central planning in everyday.
While I could go on and on about the many examples that Obama has prolonged the economic damage to the U.S. that has gone on for over a decade. This is not a Democrat/Republican problem this is an educational problem that stems from a poor understand of the economics of a true free market economy and the current central planning economy masked as a free market that we have in the United States today.
“Those who fail to learn from History are doomed to Repeat it”.!