The Truth About Obama’s Plans - Part 2 - The Economy

I started this post out to debunk Obama’s economic platform.  Unfortunately, it ended up taking too long.  I’ll post what I’ve got, but his platform is so wrongheaded it would take too long to go through the whole thing.

Details from Obama’s website (with my notes)

The Problem

Wages are Stagnant as Prices Rise:
While wages remain flat, the costs of basic necessities are increasing.
The cost of in-state college tuition has grown 35 percent over the past
five years. Health care costs have risen four times faster than wages
over the past six years. And the personal savings rate is now the
lowest it’s been since the Great Depression.

Obama’s cherry-picking here.  He’s picked the two highest-inflation things he can find to pick on.

Tax Cuts for Wealthy Instead of Middle Class:
The Bush tax cuts give those who earn over $1 million dollars a tax cut
nearly 160 times greater than that received by middle-income Americans.
At the same time, this administration has refused to tackle health
care, education and housing in a manner that benefits the middle class.

Obama’s trying to start a class war here by pitting the middle class against the rich.  The only reason the tax cut is bigger is because they make more money.

Barack Obama and Joe Biden’s Plan

Jumpstart the Economy

• Enact a Windfall Profits Tax to Provide a $1,000 Emergency Energy Rebate to American Families:Barack
  Obama and Joe Biden will enact a windfall profits tax on excessive oil
  company profits to give American families an immediate $1,000 emergency
  energy rebate to help families pay rising bills. This relief would be a
  down payment on the Obama-Biden long-term plan to provide middle-class
  families with at least $1,000 per year in permanent tax relief.
• Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs:
  This relief would include a $25 billion State Growth Fund to prevent
  state and local cuts in health, education, housing, and heating
  assistance or counterproductive increases in property taxes, tolls or
  fees. The Obama-Biden relief plan will also include $25 billion in a
  Jobs and Growth Fund to prevent cutbacks in road and bridge maintenance
  and fund school re­pair - all to save more than 1 million jobs in
  danger of being cut.

First, the windfall profits tax.  If his goal is to jumpstart the economy, diverting about $1 trillion away from private companies into government monopolies (energy companies) isn’t going to jumpstart anything.  Also, who gets to define windfall?  Finally, when oil prices tank (as they are now), will they give the taxes back?  Doubtful.

Second, the $50 billion: where’s the money coming from for this?  He talks about balancing the budget and then proposes $50 billion in spending.  There’s not much detail in this and so I’m skeptical.

Provide Middle Class Americans Tax Relief

Obama and Biden will cut income taxes by $1,000 for working families to offset the payroll tax they pay.

What, rich people don’t work?  That’s pretty ridiculous.

• Provide a Tax Cut for Working Families:
  Obama and Biden will restore fairness to the tax code and provide 150
  million workers the tax relief they need. Obama and Biden will create a
  new “Making Work Pay” tax credit of up to $500 per person, or $1,000
  per working family. The “Making Work Pay” tax credit will completely
  eliminate income taxes for 10 million Americans.
• This is socialism.  Let’s take money from those who are earning it and producing and give it to those who don’t.  This gives producing people every incentive not to produce by raising the cost of doing so.  It also gives those 10 million an incentive not to work more because doing so would incur an income tax liability.
  
• Eliminate Income Taxes for Seniors Making Less than $50,000:
  Barack Obama will eliminate all income taxation of seniors making less
  than $50,000 per year. This proposal will eliminate income taxes for 7
  million seniors and provide these seniors with an average savings of
  $1,400 each year. Under the Obama-Biden plan, 27 million American
  seniors will also not need to file an income tax return.
• That last part is a lie.  Everybody has to file a return, even if they don’t make any money.  That’s how the IRS knows you didn’t make any money.  This is pure pandering to a demographic who doesn’t typically vote with the left.
  
• Simplify Tax Filings for Middle Class Americans:
  Obama and Biden will dramatically simplify tax filings so that millions
  of Americans will be able to do their taxes in less than five minutes.
  Obama and Biden will ensure that the IRS uses the information it
  already gets from banks and employers to give taxpayers the option of
  pre-filled tax forms to verify, sign and return. Experts estimate that
  the Obama-Biden proposal will save Americans up to 200 million total
  hours of work and aggravation and up to $2 billion in tax preparer fees.
• “Pre-filled forms” won’t “dramatically simply tax filings”.  Give me a break.
  

Trade

Obama and Biden believe that trade with foreign nations should strengthen the
American economy and create more American jobs. He will stand firm
against agreements that undermine our economic security.

• Fight for Fair Trade:
  Obama and Biden will fight for a trade policy that opens up foreign
  markets to support good American jobs. They will use trade agreements
  to spread good labor and environmental standards around the world and
  stand firm against agreements like the Central American Free Trade
  Agreement that fail to live up to those important benchmarks. Obama and
  Biden will also pressure the World Trade Organization to enforce trade
  agreements and stop countries from continuing unfair government
  subsidies to foreign exporters and nontariff barriers on U.S. exports.
• Ah, fair vs free.  The question is, fair to whom?  Should we keep lousy production jobs in the US and make sure blue collar workers keep the same low-pay, high-work jobs or should we offshore those jobs and allow those workers to take better jobs?  Obama says keep them in the low-pay jobs.  That way, they can rely on the government.
  
• Amend the North American Free Trade Agreement:
  Obama and Biden believe that NAFTA and its potential were oversold to
  the American people. They will work with the leaders of Canada and
  Mexico to fix NAFTA so that it works for American workers.
• What does that mean?  Could that be less specific?  I’m pretty sure “works for American workers” means “protectionist”.
  
• Improve Transition Assistance:
  To help all workers adapt to a rapidly changing economy, Obama and
  Biden will update the existing system of Trade Adjustment Assistance by
  extending it to service industries, creating flexible education
  accounts to help workers retrain, and providing retraining assistance
  for workers in sectors of the economy vulnerable to dislocation before
  they lose their jobs.
• This is a good idea.
  
• End Tax Breaks for Companies that Send Jobs Overseas:
  Barack Obama and Joe Biden believe that companies should not get
  billions of dollars in tax deductions for moving their operations
  overseas. Obama and Biden will also fight to ensure that public
  contracts are awarded to companies that are committed to American
  workers.
• Why do companies send jobs overseas?  Because they need to cut costs.  I don’t think the solution is raising costs on companies who need to cut costs to survive.  Obama has this idea that corporations are evil and trying to hurt workers.  He has no concept that layoffs are hard on managers as well as employees.  We cannot elect somebody who hates the drivers of our economies (businesses).  Who does he think provides jobs to workers?  Oh that’s right…the government.
  
• Reward Companies that Support American Workers:
  Barack Obama introduced the Patriot Employer Act of 2007 with Senators
  Richard Durbin (D-IL) and Sherrod Brown (D-OH) to reward companies that
  create good jobs with good benefits for American workers. The
  legislation would provide a tax credit to companies that maintain or
  increase the number of full-time workers in America relative to those
  outside the US; maintain their corporate headquarters in America if it
  has ever been in America; pay decent wages; prepare workers for
  retirement; provide health insurance; and support employees who serve
  in the military.
• Pretty much the same as above.
  

Invest in the Manufacturing Sector and Create 5 Million New Green Jobs

• Invest in our Next Generation Innovators and Job Creators:
  Obama and Biden will create an Advanced Manufacturing Fund to identify
  and invest in the most compelling advanced manufacturing strategies.
  The Fund will have a peer-review selection and award process based on
  the Michigan 21st Century Jobs Fund, a state-level initiative that has
  awarded over $125 million to Michigan businesses with the most
  innovative proposals to create new products and new jobs in the state.
• This sounds good, as long as the government doesn’t maintain an interest in any businesses.
  
• Double Funding for the Manufacturing Extension Partnership:
  The Manufacturing Extension Partnership (MEP) works with manufacturers
  across the country to improve efficiency, implement new technology and
  strengthen company growth. This highly-successful program has engaged
  in more than 350,000 projects across the country and in 2006 alone,
  helped create and protect over 50,000 jobs. But despite this success,
  funding for MEP has been slashed by the Bush administration. Barack
  Obama and Joe Biden will double funding for the MEP so its training
  centers can continue to bolster the competitiveness of U.S.
  manufacturers.
• Right, Obama’s concerned about efficiency in the manufacturing sector.  Then he supports unions.  What is he, a literature major?
  
• Invest In A Clean Energy Economy And Create 5 Million New Green Jobs:
  Obama and Biden will invest $150 billion over 10 years to advance the
  next generation of biofuels and fuel infrastructure, accelerate the
  commercialization of plug-in hybrids, promote development of commercial
  scale renewable energy, invest in low emissions coal plants, and begin
  transition to a new digital electricity grid. The plan will also invest
  in America’s highly-skilled manufacturing workforce and manufacturing
  centers to ensure that American workers have the skills and tools they
  need to pioneer the first wave of green technologies that will be in
  high demand throughout the world.
• This would involve tripling the existing number of jobs in this sectcor.  Not likely.  Also, $150 billion divided by 5 million is $30,000.  Does Obama really think $30,000 per person OVER 10 YEARS is a “good job with good benefits”?  Moron.
  
• Create New Job Training Programs for Clean Technologies:
  The Obama-Biden plan will increase funding for federal workforce
  training programs and direct these programs to incorporate green
  technologies training, such as advanced manufacturing and
  weatherization training, into their efforts to help Americans find and
  retain stable, high-paying jobs. Obama and Biden will also create an
  energy-focused youth jobs program to invest in disconnected and
  disadvantaged youth.
• High paying?  See above.
  
• Boost the Renewable Energy Sector and Create New Jobs:
  The Obama-Biden plan will create new federal policies, and expand
  existing ones, that have been proven to create new American jobs. Obama
  and Biden will create a federal Renewable Portfolio Standard (RPS) that
  will require 25 percent of American electricity be derived from
  renewable sources by 2025, which has the potential to create hundreds
  of thousands of new jobs on its own. Obama and Biden will also extend
  the Production Tax Credit, a credit used successfully by American
  farmers and investors to increase renewable energy production and
  create new local jobs.
• See above above.
  

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Proof That Unions Hurt Workers

** Thanks to my EMBA group for coming up with some of the numbers in this post.  Man, they’re smart! **

Note this graph from this article:

See that?  People are losing jobs in the auto industry.  Almost 500,000 since 2000.  Why?

Well, US auto manufacturers’ costs are high compared to their foreign competitors.  This means they make less money, per car (and sometimes lose money, per car).

Which costs are higher?

Pension and healthcare benefits for retirees are one example.  US auto manufacturers have to pay this and foreign competitors don’t. How much?  $1,500 per car.

Another cost that’s higher is wages.  Toyota’s total labor cost per hour is $35.  GM’s is $81.  That equates to 1,000 per car.

So, just those two areas alone cost GM $2,500 per car more than Toyota.

GM produced 9,370,000 cars in 2007.  An extra $2,500 per car would mean an extra $23,425,000,000.

GM lost $38,732,000,000 last year.  That extra money would have cut that loss by 60%.  The extra $23 billion would have meant fewer jobs lost.

So, why on Earth would GM pay so much in wages and benefits that they have to layoff workers?  Is it a vast corporate conspiracy?

Nope.

Unions.

That’s right, the unions have negotiated themselves out of 500,000 jobs.  They keep the company’s costs so high, it cannot even afford to do business.  And therefore, has to lay people off.

Anybody know the definition of a parasite?  “An organism that grows, feeds, and is sheltered on or in a different organism while contributing nothing to the survival of its host.”

Sounds like a union to me.

Incidentally, what has Obama made his first priority in the White House?  Increasing union membership.  Also here.

In addition to minorities, shouldn’t laborers hate Obama, too?

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Proposition 8 Is A Missionary Opportunity

I saw an interesting memo tonight.  It was written by a member who is an attorney.  He took the “Six Consequences” of Prop 8 not passing and debunked their legal foundations.  Basically, the six consequences are nothing more than
scare tactics and exaggerations.  This bothers me a great deal because I allowed myself to get taken in by them.  I’m grateful to Brother Thurston for pointing these out.

To be clear:  I want Proposition 8 to pass.  Homosexuality is wrong.  It is a mockery of a one of the most sacred sacraments (see section “A Holy Sacrament”) in which we will ever partake.  Homosexual marriage is a mockery of a sacred institution, ordained by God Himself.  I cannot state that strong enough.

However, I do not believe in achieving a goal by any means necessary.  If we continue to peddle scare tactics with no factual support, no matter what happens with Prop 8, our personal integrity will have suffered, to say nothing of the Church’s good name.

Instead of propagating falsehoods, why not take this opportunity to teach why homosexuality is wrong?  Is this not a missionary opportunity?  Should we not teach the importance of families and procreation and godly progression?

Proposition 8 is not the solution to all of our problems and the failure of its passage will not herald the defeat of religion.  Religion will only be defeated if we continue to shy away from religious arguments that explain our actions and beliefs and instead hide behind scare tactics and exaggerations.

Many reasons are given to oppose homosexual marriage these days. They include the idea that homosexual couples have a harmful effect on their adopted children.  Additionally, our legislators say the Constitution doesn’t allow for it.  If we continue to cite these flawed and weak reasons* as the cause of our opposition to homosexual marriage, not only are we painting ourselves in a logical corner, we are hiding the real reason for our opposition.  We are hiding God’s commandments behind flimsy excuses instead of “letting [our] light…shine before men”.  I think we will find it difficult to truly say we “have no other Gods before [Him]” if we don’t acknowledge His reasoning first and foremost.

I propose that we instead proclaim our opposition to homosexual marriage on the grounds that God has forbid it.  Further, that we know God has forbid it because He has a prophet on the Earth today who has revealed His will in a sacred document known as the Family Proclamation.  Finally, if they would like more information about President Monson or Jesus Christ’s church on Earth today, they can meet with representatives by going here.

* I say they’re flawed and weak because there are also studies that show that homosexual couples have well-adjusted families; the Constitution of the US makes no mention of marriage, heterosexual or otherwise.

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The Truth About Obama’s Plans - Part 1 - Civil Rights

I’m tired of hearing lies from the media and Obama’s campaign about his policies and their effects.  So, point-by-point, I’m going to examine his stated plans from his website.  His text is in black, mine is in red.

Part 1 - Civil Rights - Summary

Good - potential rehab for druggies instead of prison may cut costs

Bad - fair pay legislation that will increase unemployment of women and minorities, curtailing of civil rights through broadened hate crime legislation, tampering with the voting system, curtailing ability to capture criminals

Overall - increasing unemployment, costs and crime.  Quite the triumvirate.

Details from Obama’s website (with my notes)

The Problem

Pay Inequity Continues: For every $1.00 earned by a man, the average woman receives only 77 cents, while African American women only get 67 cents and Latinas receive only 57 cents.

The statistics behind this are dubious.  Does the “average” woman include non-working women?  Does the average woman, regardless of race, tend to take jobs that pay lower and give them more time with family?  Some studies say this is the case.

Hate Crimes on the Rise: The number of hate crimes increased nearly 8 percent to 7,700 incidents in 2006.

This is extremely misleading.  The definition of hate crimes changes is ever-expanding.

Efforts Continue to Suppress the Vote: A recent study discovered numerous organized efforts to intimidate, mislead and suppress minority voters.

This is the pot calling the kettle black if I’ve ever heard it.  Ever heard of ACORN?

Disparities Continue to Plague Criminal Justice System: African Americans and Hispanics are more than twice as likely as whites to be searched, arrested, or subdued with force when stopped by police. Disparities in drug sentencing laws, like the differential treatment of crack as opposed to powder cocaine, are unfair.

I’m going to say this is mostly due to the fact that the overwhelming majority of crimes are committed by blacks and hispanics.  See the stats from the Bureau of Justice Statistics.  40% of all jail inmates are black, and 19% are hispanic.  That’s 59%.

Barack Obama and Joe Biden’s Plan

Strengthen Civil Rights Enforcement

Obama and Biden will reverse the politicization that has occurred in the Bush Administration’s Department of Justice. They will put an end to the ideological litmus tests used to fill positions within the Civil Rights Division.

I would fully back this, if they’ll do it.  However, I think it will just swing the other way, instead.  We’ll see.

Combat Employment Discrimination

Obama and Biden will work to overturn the Supreme Court’s recent ruling that curtails racial minorities’ and women’s ability to challenge pay discrimination. They will also pass the Fair Pay Act to ensure that women receive equal pay for equal work and the Employment Non-Discrimination Act to prohibit discrimination based on sexual orientation or gender identity or expression.

The Fair Pay Act will only make it more burdensome to hire women and minorities because you have to 1) ensure you’re paying the same and 2) be able to prove it and 3) defend yourself when somebody gets upset because they had a bad morning and decides they want to sue you.  If this passes, I’d be interested to see the unemployment statistics over time.

Expand Hate Crimes Statutes

Obama and Biden will strengthen federal hate crimes legislation, expand hate crimes protection by passing the Matthew Shepard Act, and reinvigorate enforcement at the Department of Justice’s Criminal Section.

Again, the idea of a hate crime is suspect itself.  And the broad definitions that will continue to expand (”strengthen federal hate crimes legislation”) only guarantees this administration will eventually prohibit you from expressing dislike for somebody because they’re a member of one of Obama’s anointed groups (women, minorities and gays).

End Deceptive Voting Practices

Obama will sign into law his legislation that establishes harsh penalties for those who have engaged in voter fraud and provides voters who have been misinformed with accurate and full information so they can vote.

If there is voter fraud, I agree it should be eliminated.  However, I don’t have any faith this guy is going to do anything that would cut out potential Democrat votes.

End Racial Profiling

Obama and Biden will ban racial profiling by federal law enforcement agencies and provide federal incentives to state and local police departments to prohibit the practice.

Spectacular.  We can no longer use valid data to determine who is most likely to commit crimes and, therefore, have some small shot at prevention.  Isn’t this the same group of people that criticized Bush for not listening to data?

Reduce Crime Recidivism by Providing Ex-Offender Support

Obama and Biden will provide job training, substance abuse and mental health counseling to ex-offenders, so that they are successfully re-integrated into society. Obama and Biden will also create a prison-to-work incentive program to improve ex-offender employment and job retention rates.

Our prison system is awful.  I’m all for reforming people instead of punishing them (actually, only some people.  Rapists, murderers and the like should be savagely murdered in public as an example).  Do I think they’ll do anything other than make it easier to get out of prison and raise the cost of prisons?  No.

Eliminate Sentencing Disparities

Obama and Biden believe the disparity between sentencing crack and powder-based cocaine is wrong and should be completely eliminated.

I don’t know anything about crack vs powder, so I can’t say anything.

Expand Use of Drug Courts

Obama and Biden will give first-time, non-violent offenders a chance to serve their sentence, where appropriate, in the type of drug rehabilitation programs that have proven to work better than a prison term in changing bad behavior.

As long as this cuts the cost of the penal system and helps work towards actual rehab, this sounds good.

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Kim, You Said A Mouthful

The Wall Street Journal has a great opinion piece by Kim Strassel today. In it, she highlights the contradictions inherent in Obama’s ideas. Here are a couple of highlights:

• “For his next trick, the Great Obama will jumpstart the economy, and he’ll do it byraising taxes on the very businesses that are today adrift in a financial tsunami!”… “Mr. Obama will, with a flick of his fingers, show them how to create more jobs with less money. It’s simple, really. He has a wand.”
• “Mr. Obama will now demonstrate how he gives Americans the ‘choice’ of a ‘voluntary’ government health plan, designed in such a way as to crowd out the private market and eliminate all other choice! Don’t worry people: You won’t have to join, until you do. Mr. Obama will follow this with a demonstration of how his plan will differ from our failing Medicare program.”  Nice.

Read the whole thing, it’s definitely worth it.

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