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Jaws Summit

December 3, 2009

Click the image for a stunning video illustrating the rise in unemployment.

I’m trying to come up with a yardstick to measure the incompetence of the Obama administration — and failing.

And it’s political incompetence I’m talking about. You come into office in the midst of the biggest financial crisis in decades and facing what you at least are telling the public the threat of a general economic meltdown. So what do you do? Focus on the economy? Create jobs? No, you make the centerpiece of your legislative agenda — one that has occupied the center of the national stage since July or August — a massive overhaul of the healthcare system that will increase taxes and therefore potentially decrease jobs in the long run but in the short run will create massive uncertainty for small businesses who don’t know what a new employee with the new health care would cost them — and thus kill jobs. The Obamacare fiasco has already driven a powerful wedge through a main Democratic base (old folks) and threatens another (women) as the implications of government rationing set in. Now with the government out of money and hemorrhaging red ink, the president is going to try to figure out how not to lose its labor base (and of course it’s already losing its leftwing activist base over the war in Afghanistan.) Kind of a perfect storm of self-induced defections, and a remarkable feat of political ineptitude.

  1. Theodore Blunt permalink
    December 3, 2009 5:48 pm

    I heard Krauthammer give more credancr to a Limbaugh statement that”jobs wouldnt increase while the health care bill was in limbo” Krauthammer said that no one was going to hire or start a business until they knew what the downside was to the health care bill. In everything this administration undertakes, I see incompetence. It seems that the entire staff are covered with tax issues or some other inappropriate act or action Where did he find all these people? One good competent person would shine like a thousand watt bulb.

  2. December 3, 2009 6:16 pm

    Naaaa, most companies already provide health insurance for their employees, and companies with less than 15 employees are exempt. It’s not going to affect the economy negatively whatsoever. What it will do is lower premiums in the long run, which will take money out of the pockets of insurance company CEOs and put it in the pockets of workers, who will spend it, which will stimulate the economy.

    • Carterthewriter permalink
      December 3, 2009 6:31 pm

      Sweet dreams, Ben.

    • Barmat permalink
      December 3, 2009 7:08 pm

      Ben, I wouldn’t show off your Economics prowess from the Acorn Institute of Income Redistribution so openly. I’d be more subtle.

    • phrogs69 permalink
      December 3, 2009 7:14 pm

      Ben, how does something that will cost, conservatively, $900,000,000,000 not effect the economy?

    • Walt permalink
      December 3, 2009 8:19 pm

      Thank you for the talking points Ben. Would you actually like to explain how roughly $500 billion in cuts to Medicare over a decade will improve healhcare for the elderly? Also, will the proposed new taxes on medical equipment and devices make such items more affordable for the public? You might want to check out such matters for yourself, rather than rely on Senator Reid’s promises.

    • semus permalink
      December 4, 2009 6:07 am

      Naaaa No big deal Ben will just let “Uncle Joe” take care of us right Ben. Let’s all go to sleep right Ben.

      You wish Ben, but no chance.

    • William Hoffpauir permalink
      December 4, 2009 8:45 am

      Pass me that pipe!

    • Joseph Cottrell permalink
      December 4, 2009 1:12 pm

      Ben – you fool – companies do not “provide health care” for their employees, they purchase it from medical insurance companies. When there are no more private insurers – and all of THOSE jobs are gone – what do you suppose will happen?


    • jhimmi permalink
      December 5, 2009 6:42 pm

      The federal government’s subsidization of college tuition doesn’t seem to have had the same effect on tuition rates.

      Even if government is successful in reducing prices, it will have unintended consequences, like discouraging would-be doctors and creating doctor shortages, or long waits discouraging would-be patients and preventing early detection of diseases.

  3. ant permalink
    December 3, 2009 7:14 pm

    Yea, I forgot this 900 billion dollar plan was “deficit neutral”. Obummer has to know his agenda is preventing recovery. He also has to know having business leaders at a jobs summit would be more productive than enviromentalists and union Marxists. But hey, maybe we could all get “green jobs”,where would the money for our salaries come from though?

    • Marylou permalink
      December 4, 2009 12:35 am

      I know! they could get the money from………taxes!! Pretty smart, huh?

      That seems to be how they think.

      In reality, govt (created green) jobs are money taken from us and therefore not actual economic growth because there is no Profit to continue the system of free enterprise and individual effort that has enriched our country.

      I can’t decide whether Obummer knows he is wrecking small business people’s desire to hire people by creating so many unknown factors, such as health care unknowns, or whether they are just that uneducated about how our system actually works. From some of the things they say, I think they really don’t know. After all, they’ve been in the govt schools being taught by civil servants and not entrepreneurs or individualists at all for many, many years.

      Still, it’s a puzzle.

      • December 4, 2009 11:28 am

        No puzzle. The Soros/Obama/Reid/Pelosi game plan is to reduce Capitalism to a bare minimum – just enough (they think) to keep a replacement Socialism financially afloat. Mussolini called it Fascism. In essence it’s “capitalism” stripped of its energizing competitiveness. The unions and the socialist government dictate to the ‘private’ sector how to run their businesses. It doesn’t work because you have the idiots running the asylum. An example now is GM which still hemorrages money but is – and will continue to be – run at staggering losses subsidized by the taxpaying public.

  4. TalkinHorse permalink
    December 3, 2009 7:30 pm

    The danger in a situation like this is for a cure that’s worse than the disease. “Cash for Clunkers” bumps up the GNP for a tick — but it runs up the debt, and wastes precious resources by trashing perfectly good infrastructure. I don’t blame Obama for today’s high unemployment — but I weep at the pain to come as a result of his counterproductive efforts to “help” us. Yeah, the health care focus is nothing short of insane…nobody can deny this will run up the debt and increase the cost of health and employment, while at the same time decreasing access for mainstream America. Obama has placed his leftist agenda above everything…and Democrats know it’s crazy and the bill under consideration is a job-killing nation-bankrupting citizen-murdering Frankenstein monster being rammed down America’s throat — but still they march ahead out of fear of embarrassing Dear Leader. Is this process unstoppable? Are we doomed to fascist dysfunction?

  5. Cas Balicki permalink
    December 3, 2009 9:33 pm

    Obamacare will have to be paid for somehow. Here are, in general, the choices available to the government:

    1) Taxes/premiums, in order to pay for the program taxes will have to go up, this is not a revenue neutral program and it will never be so. Raising taxes on anyone in this fragile economy will kill any prospect of job led recovery by taking money from potential consumers.

    2) Deficit financing, at least in the interim. Such financing will drive government into the debt market, and that means increased interest rates and relatively scarce capital. High interest rates can be more affectionately referred to as the mother of all job killers, because they cripple both the debt and equity markets. As rates increase the price of old debt issued at significantly lower interest rates drops making buyback an attractive option for debtors that might otherwise invest the money in job creating ventures. In addition higher interest rates raise the “hurdle rates” on new projects which decreases the number of viable potential projects and makes those fewer viable projects that much more difficult to finance due in no small part to the demands for higher returns and lower risk exposure. Higher interest rates also cause stock prices to fall if not collapse as margin plays become more costly and the demand for higher safer yields in bonds attracts capital away from equities. With the equity markets thus imploding equity financing becomes an unattractive option to capital users that might be considering job creating investments.

    3) Printing money, the absolute worst thing this government can do. The result will be to ratchet up inflation, which will undermine any potential job recovery. Investors facing an uncertain future due to inflation are far more likely to move money into assets that track positively with inflation and are not management intensive, meaning no pesky people working at jobs with which to contend. Those who might think this bodes well for real estate should remember that real estate will sell, but at historically low prices. Real estate is always a long term and very illiquid investment, so don’t go looking to make a killing buying up repos from Fanny and Freddy, especially when buyers and renters are worried about their employment prospects.

    The one thing readers can absolutely take to the bank is that in every scenario the job recovery is likely to be slow, which for the government means that its revenues (taxes collected) are going to be way down and its outflows way up. In such circumstances the government will be running an operating deficit in addition to any deficits that will surely result from new program spending. Not being related to Henny Penny I will not utter her famous words, but my one word definition of the road ahead would be, unsustainable.

  6. December 3, 2009 11:52 pm

    I will leave Ben alone as he most likely has inhaled some strong fumes from the glue he’s been using to keep his argument together. That being said, we all see what’s going on, and it’s time to really do something about it…

    I wrote some thoughts on the matter, should anyone have the time:

    I believe that all major change in a nation begins with the individual. Yes, I am implying that you, by yourself, have the ability to effect our Country. It’s true.

    Nathan R. Jessup

  7. richard permalink
    December 4, 2009 5:32 am

    where others see incompetence i see malfeasance.
    i believe they are trying to weaken the system we have.
    so restructuring of power/wealth to what groups they want to will
    be easier.

  8. richard permalink
    December 4, 2009 5:34 am

    the almost one trillion dollars should have been used to create jobs.
    how is it that we have a government that can get away with
    outright deceit with half of the people applauding their own demise?

    • Carterthewriter permalink
      December 4, 2009 6:17 am

      The people supporting are either working for the government or are lining up outside the door.

      The problem with government jobs is they don’t produce their own revenue. Some fools seem to forget that fact and most of them were voted into those positions. How enlightening.

    • In the Know permalink
      December 4, 2009 7:46 am

      Answer- Years of patronage (paying for votes) by democrats have created an entitlement mentality in inner cities. The Romans suffered the same fate. The citizens determined they could steal other citizens money simply by voting for a certain candidate.

  9. ant permalink
    December 4, 2009 12:37 pm

    “When the people find they can vote themselves money,that will herald the end of the republic.” – Benjamin Franklin

  10. Edisa permalink
    December 4, 2009 2:23 pm

    In the last two federal elections, I watched independents and nominal republicans become disillusioned with the GOP because the decisions coming out of a “republican congress” were not fiscally conservative enough. In an irrational reaction, they voted in a democrat majority in both houses and a democrat administration. What did they THINK would happen? The federal spending is going crazy, and with MUCH more to come in the health care segment of the economy.

    The economy is composed of the productivity of the population. The free market guarantees the most efficient use of resources, so that productivity is maximized if the money system is held to stable and predictable rules and the money supply matches output.

    Spending tax dollars and creating more national debt to create government jobs (or government approved jobs that cannot fly in the free market) will only slow the overall economy down and create waste. Government jobs are less efficient–less productive–than free market jobs. And somebody has to make the payments on the additional debt. That non-productive interest payment goes outside the country to whoever holds the “note,” further slowing the economy because that money could have been used instead for productive purposes instead if the debt were not there.

    We needed MORE republicans in office, not fewer! We needed enough to cancel the vote of those “moderate” republicans who vote with the democrats on fiscal issues. I just hope we can bring in enough new GOP members in the mid term elections to prevent a total economic meltdown.

  11. Elaine B permalink
    December 4, 2009 5:17 pm

    The only logical answer is the plan is not to improve the economy but improve the riches of the Marxist elitist who rule and increase their power over us all.

Comments are closed.