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Obama “Economic Stimulus” Isn’t Working

The Financial Times recently reported these dismal figures for private sector hiring: “Since the stimulus began, about 400,000 public sector jobs have been added (through May 2010) while 2.7 million private sector jobs were lost.” The National Federation of Independent Business has a study showing that small businesses in the United States lost jobs in twelve of the last fourteen months. What is equally disturbing in the NFIB survey is that its small business members have no plans to increase hiring in the foreseeable future. Considering that small businesses are responsible for the creation of a majority of new private sector jobs, this is particularly worrisome.

One group of employees, however, continues to do well even in these difficult recessionary times. Federal employment has increased by 225,000 since President Obama took office. Moreover, according to USA TODAY, federal workers now earn more than twice as much as employees in the private sector doing comparable jobs.

For every other sector of the American economy, unemployment remains high, and those who have gone back to work after losing their jobs in this recession often are making less than they were before. The U.S. Bureau of Labor Statistics reports that 46 percent of the unemployed have been out of work for 27 weeks or longer. Economist Martin Hutchison notes that long-term unemployment in the U.S. “has reached levels not seen since World War II.”

All of this data should make it clear to most Americans that the so-called stimulus programs aren’t helping to get Americans back to work. The thrust of these various government spending packages has been to encourage the American consumer to spend more as a means to get us out of this recession. The problem with this approach is that, if the consumer is worried about holding a job, keeping a business going, making mortgage payments on a house, or paying down credit card debt, he or she is going to spend less and save more – which is precisely what is happening.

That’s why consumer confidence continues to remain weak. In fact, the latest consumer index from the Conference Board for July states that “confidence had hit a five-month low,” down to near the 50 percent range. It was at the 100 percent level a little less than three years ago.

Scott Burns had it right in a recent column in which he warned of “the idea that government could stimulate demand with deficit spending.” Burns quotes economist Lacy Hunt: “Deficit spending, rather than energizing the economy, is debilitating it. Worse, after the spending is done, the private sector has to service the new debt.”

If the current policies aren’t effective in putting Americans back to work, then what should we do instead? The key is to provide incentives to get the private sector moving again similar to what we did with the Congressional passage of the Kemp-Roth Job Creation Act in 1981 during President Ronald Reagan’s first term in office. The economic circumstances are different than what we faced back then (government debt is a lot higher), but the concept is similar: How do we encourage savings and capital investment in order to create jobs here in the United States? I would submit that the best way to do that is to replace our corporate tax system and its 35 percent tax rate with an 8 percent revenue-neutral, business consumption tax. That tax would be applicable on goods and services coming into the U.S., while U.S. exports would get a comparable tax credit. This gets rid of our onerous tax on businesses operating here in the U.S., while leveling the playing field with our trading competitors who currently enjoy a huge trade advantage over American exporters.

Adopting a business consumption tax to replace our current system would reduce the outsourcing of American jobs, encourage long-term investment in U.S. businesses, rebuild our manufacturing base, reduce our trade deficits, and put business owners back in charge of the American economy.
This is a real economic stimulus plan to get Americans back to work.

Tom Pauken is the Chairman of the Texas Workforce Commission.

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Obama vs. Romney: The Houston Money

South Texas Daily – News, Opinion and Politics from South Texas by Paul Gable

Massachusetts Gov. Mitt Romney’s campaign raised nearly twice as much money in the greater Houston area than that of President Barack Obama – most of it from wealthier upscale communities – but more people overall contributed to the president’s re-election, according to aHouston Chronicle analysis of campaign contributions.

See an interactive map of donors here.

Though Romney’s numbers are hardly surprising in a Republican-dominated state, the money trail reflects both the political diversity of the Houston region and the two candidates’ eclectic support in the nation’s fourth-largest city.

The post Obama vs. Romney: The Houston Money appeared first on South Texas Daily.

Rose Vela exits chief justice race

South Texas Daily – News, Opinion and Politics from South Texas by Paul Gable

Republican Party leaders expressed disappointment over Justice Rose Vela’s decision to withdraw from the race for chief justice of the 13th Court of Appeals given the bid by her husband, Democrat Filemon Vela, for the District 34 U.S. congressional seat.

Justice Vela, 47, of Corpus Christi, asked Secretary of State Hope Andrade on Aug. 21 to drop her name from the November General Election ballot. Justice Vela had been unopposed in the Republican Party primary.

“I appreciate the tremendous opportunity I have had to serve the citizens of Texas over the last 14 years and I look forward to my private practice,” Justice Vela, who serves in Place 2 on the appellate court, said in a written statement Friday.

The post Rose Vela exits chief justice race appeared first on South Texas Daily.

Reuters calls Mexico’s socialist, Fidel Castro-aligned PRI "centrists"

By Eric Dondero

Vazquez Mota and PAN, middle-of-the-road quasi-free market supporters, are labeled "conservative"

by Eric Dondero

This is an absolutely stunning example of off-the-charts liberal media bias.

In an article, April 5, "Mexican conservatives revamp presidential bid." Reuters throws the centrist label on the hardline socialist partido revolucionario institucional (pri):

[Josefina] Vazquez Mota (photo) trails by double digits behind Enrique Pena Nieto, a former state governor running for the centrist Institutional Revolutionary Party, or PRI.

The PRI ruled Mexico for most of the 20th century until it was ousted by the PAN in 2000. It is now trying to capitalize on voters' frustrations with President Felipe Calderon's administration and a drug war that has left more than 50,000 people dead in the past five years.

PRI's socialist ties

PRI has a long history of associations with the worldwide socialist movement dating back to the 1920s. The party was founded by socialists from the "campesino" movement. PRI boasts that their ideology is "for the campesino class." The party is a longstanding member of Socialist Internacional. Additionally, PRI has long aligned itself with the policies of Cuba's communist dictator Fidel Castro, and has had warm friendly relations with other communists throughout Latin America, including Nicauragua's Daniel Ortega and of couse, Hugo Chavez of Venezuela. PRI representatives even attended a Pan-Latin American conference on socialism in Caracas hosted by Chavez in 2010. (Source: PRI - Yucatan)

A libertarian party in Mexico?

Moreover, to call PAN "conservative," is a stretch. The Party has consistently opposed American immigration policy. PAN is more corporatist, than consistently pro-free market. Though, they can be described as conservative Catholic on social matters including abortion.

There is essentially no rightist party in Mexico. The spectrum runs from an assortment of far left parties including Partido de la Revolución Democrática and Partido del Trabajo, to the hard left PRI to centrist PAN.

There is a website for an explicitly libertarian party in Mexico, Partido Libertario de México. The site suggests they are "Objectivists," adhering to the philosophy of prosperity and Objectivist ethics. There seems to be little political activity. They do advise to be "careful," in voting for Vazquez Mota.

This entry was posted on Saturday, April 7th, 2012 at 9:54 am and is filed under Syndicated. You can follow any responses to this entry through the RSS 2.0 feed.

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Reuters calls Mexico’s socialist, Fidel Castro-aligned PRI "centrists"

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