Blogalwarning

The truth that was swept under the rug

S.C. governor evokes Zimbabwe in arguments against stimulus

Interesting and not surprising take of a Republican gov. on the Stimulous Bill. What I noticed which I did not know before, is that there is a provision in the bill that allows state legislators to override governors that do not want to take the money allotted for their states, and take it anyway. Talk about power grab of the Federal Government and the Congress…

This articles is from CNN.com  3/11/09

COLUMBIA, South Carolina (CNN) — The United States faces a Zimbabwe-style economic collapse if it keeps “spending a bunch of money we don’t have,” South Carolina Gov. Mark Sanford said Wednesday.

South Carolina Gov. Mark Sanford says he does not want to spend money that his state doesn't have. 

South Carolina Gov. Mark Sanford says he does not want to spend money that his state doesn’t have.

Sanford, a Republican, has been an outspoken critic of the Obama administration’s $800 billion stimulus plan. He said he’ll turn down about a quarter of his state’s $2.8 billion share unless Washington lets him use that money to pay down debt.

“What you’re doing is buying into the notion that if we just print some more money that we don’t have and send it to different states, we’ll create jobs,” he said. “If that’s the case, why isn’t Zimbabwe a rich place?”

Zimbabwe has been in the throes of an economic meltdown ever since the southern African nation embarked on a chaotic land reform program. Its official inflation rate topped 11 million percent in 2008, with its treasury printing banknotes in the trillion-dollar range to keep up with the plummeting value of its currency.

But with South Carolina’s unemployment rate now the second-highest in the country, state lawmakers will attempt to override Sanford and take the $700 million if he turns it down, Lt. Gov. Andre Bauer said.

“They will use the total economic stimulus to stimulate the economy, jump-start it, so we can get out of the ditch we are in as a state and as a nation,” Bauer, a fellow Republican, said in a written statement Wednesday.

Labor Department figures released Wednesday showed South Carolina’s January unemployment rate hit 10.4 percent, second only to Michigan’s 11.6 percent.

Sanford is one of several Republican governors who have criticized the nearly $800 billion stimulus package, which passed with minimal GOP support in the Senate and none in the House of Representatives. Other governors, such as California Republican Arnold Schwarzenegger or Michigan Democrat Jennifer Granholm, have said they would take any money Republican-led states reject.

But Sanford told reporters that taking the money now would leave the state in the lurch in two years, “when those funds dry up.”

“Fundamentally, if you boil down what the stimulus means for South Carolina, it means we would go through the process of spending a bunch of money we don’t have,” he said.

The stimulus measure allows state legislatures to override governors and take the money — a provision championed by South Carolina congressman James Clyburn, the No. 3 Democrat in the House. Clyburn said Sanford is unlikely to get any waiver from the administration, and he called the governor’s announcement “100 percent political posturing.”

“This recovery package is designed to stabilize communities, to save and create jobs, and help our economy get back in a growth mode,” he told reporters. “And you don’t do that by paying down debt that’s been incurred over a long period of time.”

And Bauer said that if South Carolina turns down the money, “South Carolina taxpayers will be taking on the debt for economic stimulus money sent elsewhere.”

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March 15, 2009 Posted by | On Obama and Economy | , , , , , , | Leave a comment

Card Ceck and Empolyee “Free” choice (EFCA)

Below are excerpts from James Sherk’s article in the Heritage Foundation website regarding the “Employee Free Choice Act”. The act does everything but giving employees any choice.  It sure gives unions the power to intimidate employees who vote against joining them s and gives government agencies the power to force contracts on employers that do not settle a contract with the union within a certain period of time.

In a nut shell, it gives Unions much better chance to organize work places in which employees will vote for joining the union just to avoid intimidation and harassment. Then it puts the negotiation power in the hands of the union. All the union needs to do is to come with extreme demands, and drag its feet through the negotiations to exhaust the time allowed by the law. Then contracts will be imposed by government bureaucrats. 

 Card Check Creates Government-Run Workplaces

by James Sherk

WebMemo #2334

The misnamed Employee Free Choice Act (EFCA) does more than effectively eliminate workers’ rights to a secret ballot vote on joining a union. Section 3 of EFCA gives government officials the power to impose contracts on workers and firms. Government bureaucrats would set compensation and make most major business decisions at newly unionized companies. The bureaucrats writing these proposals would have no expertise in the company’s operations or business model and would be unaccountable if their decisions drove the company into bankruptcy. Workers would lose all say over working conditions. EFCA would effectively create government-run workplaces.  

Mutual Consent and Good Faith Bargaining…The end result is a contract that both sides can live with, even if they would have preferred different terms…If negotiations break down, the workers can strike or management can lock them out, but neither side must work under an unsatisfactory contract.

EFCA Imposes Contracts…Under Section 3 of the act (misleadingly titled “Facilitating Initial Collective Bargaining Agreements”)…EFCA provides that—after unions organize a business—the company has 10 days to meet with union officials to begin collective bargaining. After 90 days of bargaining, either party may request mediation by the Federal Mediation and Conciliation Service (FMCS). Thirty days later, if the parties have not settled on a contract or agreed to extend negotiations, the FMC…shall refer the dispute to an arbitration board established in accordance with such regulations as may be prescribed by the Service. The arbitration panel shall render a decision settling the dispute and such decision shall be binding upon the parties for a period of two years, unless amended during such period by written consent of the parties.

Bureaucrats Dictate Workplace Conditions…Unions would have strong incentives to make extreme demands and hope the arbitrator splits the difference between these demands and management’s position…Granting such a radical amount of power to an arbitrator puts control of workplaces in the hands of unaccountable government bureaucrats

March 14, 2009 Posted by | On Obama and Economy | , , , , | Leave a comment

Obama’s war on prosperity

Notes from “Wagin war on prosperity” By Dick Morris nd Eileen Mcgann, 3/3/09

Obama not only raising the top rate to 39.6 percent (on 3 percent most wealty in the nation) he’s also disallowing about one-third of top earner’s deductions…This is an effective hike in their taxes by an average of about 20 percent.

…And soon the next shoe will drop…apply the full payroll tax to all income over $250,000 a year…this hike will raise their total taxes by about half.

…Finally…raising the capital-gains-tax rate to 20 percent.

The top 2% earners in the nation are only 4% of the voters. So they are not to be worried about come next elections. However, those who earn more than $200,000,  pay almost 60 percent of America’s income taxes and account for a third of its total disposable income.

…Their spending will drop; they’ll be unlikely to invest (except in new tax shelters)

…Roosevelt’s assault on the rich led directly to the recession of 1937-39 – when unemployment soared back up to 19 percent

But then, Obama must also realize that his stimulus package, with its massive growth of government, is going to kindle huge inflation in coming years…Here is a president who would rather redistribute income than create wealth. He thinks it more important to grow government than to fight inflation. He believes that it is crucial to expand health care to the young and middle aged, even if it means cutting it back for the elderly.

March 4, 2009 Posted by | On Obama and Economy | Leave a comment

Spending our way out of the recession – it was tried before…

(Excerpts from “Do We Need a New New Deal?” By Burton W. Folsom Jr., Imprimis, January 2009).

 …There are three reasons why we do not need a New New Deal from President Obama In 2009…

…First, FDR’s New Deal did not lower unemployment. Sure the Works Progress Administration built roads, the Tennessee Valley Authority built dams, and the Civilian Conservation Corps planted trees. But every dollar that went to creating a federal job had to come from taxpayers, who, by sending their cash to Washington, lost the chance to buy hamburgers, movie tickets, or clothes and create new jobs for restaurants, theaters, and tailors… Henry Morgenthau, FDR’s loyal secretary of the Treasury, was frustrated at the persistence of double-digit unemployment throughout the 1930’s. In May 1939, with unemployment at 20 percent, he exploded at the failed New Deal programs. “We have tried spending money”, Morgenthaugh noted. ” We are spending more than we have ever spent before and it does not work…We have never made good on our promises… I say after eight years of this Administration we have just as much unemployment as when we started… And enormous debt to boot!”…

…Second, the taxes to pay for the New Deal became astronomical. In 1935, Roosevelt decided to raise the marginal tax rate on top incomes to 79 percent and. Later he raised it to 90 percent. These confiscatory rates discouraged entrepreneurs from investing, which prolonged the Great Depression…

…Third, the New Deal divided ad politicized the country in tragic ways. Those who lobbied most effectively won subsidies and bailouts even if their cause was weak. Others who had greater needs received nothing…

March 1, 2009 Posted by | On Obama and Economy | , , , | Leave a comment

Letter to my employees

Forwarded to me by a friend……

To All My Valued Employees,

There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn’t pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.

However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.

First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You’ve seen my big home at last years Christmas party. I’m sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.

However, what you don’t see is the back story.

I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.

My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn’t have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business — hard work, discipline, and sacrifice.

Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom’s for the latest hot fashion item, I was trolling through the Goodwill store extracting any clothing item that didn’t look like it was birthed in the 70’s. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.

So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don’t. There is no “off” button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden — the nice house, the Mercedes, the vacations… You never realize the back story and the sacrifices I’ve made.

Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn’t. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.

Yes, business ownership has is benefits but the price I’ve paid is steep and not without wounds.

Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:

I am being taxed to death and the government thinks I don’t pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my “stimulus” check was? Zero. Nada. Zilch.

The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.

The fact is, if I deducted (Read: Stole) 50% of your paycheck you’d quit and you wouldn’t work here. I mean, why should you? That’s nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.

Here is what many of you don’t understand … to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn’t need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.

When you have a comatose man on the verge of death, you don’t defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.

So where am I going with all this?

It’s quite simple.

If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child’s future. Frankly, it isn’t my problem any more.

Then, I will close this company down, move to another country, and retire. You see, I’m done. I’m done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.

If you lose your job, it won’t be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about….

Signed,

Your boss

(Source: Taz4509 of bersatalk.com)

February 28, 2009 Posted by | On Obama and Economy | , | Leave a comment