What is Obamaâ€™s economy all about? Is it Stupid and a Big Fat Lie?
By: Dr. Phil Taverna
I donâ€™t quite understand when the polls have questions like what is the most important issue for Americans today. And today the number one and two issues are jobs and the economy. Now I can imagine two economists like Friedman and Keynes having a debate about the difference. But for the regular person like you and me, the economy is all about jobs. Some might argue about the stock market. But letâ€™s face it; I love when these experts make excuses why it goes up and down. It goes up and down so people can make money. If it stayed where it was no one would make any real money. But it is funny when these idiots make excuses for the changes in the stock market. If they knew ahead of time when it was going up or down they would be trillionaires. Letâ€™s face it; they donâ€™t know anything about the changes until after they have occurred. Then it is too late!
In my famous book I spend a great deal of time writing about the economy in simple terms. Letâ€™s see if we can short cut it. At the end if I have done my job well, you will know that Obamaâ€™s job bill is plain old stupid and a big fat lie.
Letâ€™s think about concentric circles and these circles are balanced or in a relationship to some degree. In one circle there are real jobs. In the old days this was everyone who had a job or business that was not related to the government. For the most part this supplied all the money that the government ran on. In its hay day real businesses included large factories owned by companies like GE. Today many of the GEâ€™s jobs have been moved out of the country. Many of the service industries are now handled by places like India. So when a Bank says it is cutting thousands of jobs, you have to ask them which jobs. And you will find in a few months all those jobs are still there but they are being handled in places like India. So the next time you call Bank of America donâ€™t be surprised if the person answering the phone has a thick â€œAmericanâ€ accent. They may understand you well, but you may not understand them.
When these clowns move the jobs out of the country, we still get the opportunity to buy the American products made elsewhere, but the taxes that those businesses pay both the business tax and the employee taxes do not come to America.
So thatâ€™s the major problem that liberals like Clinton donâ€™t understand. They thought that the advantage of buying cheaper made products and products of lesser quality would benefit the American Economy. But in reality the circles of economy that pays the most to the government for government jobs has decreased proportionately. But Clinton did benefit personally from all those contributions from foreigners!
In summary, that means Clinton and Obama have sent American Jobs overseas. We benefit by cheaper products sold in America, but these foreign workers do not pay any taxes into the American system. We need those taxes in America to run the government tax mill.
There is another circle which I call the collateral jobs folks. These are the folks that support all the workers. They donâ€™t make things like widgets, but they supply healthcare, and all other services and products to the real jobs folks and the government workers. This circle pays taxes and they help pay taxes to the government mill. To a large degree these folks could be considered as part of the real jobâ€™s circle but keep in mind they also support the folks in the government jobâ€™s circle as well. So part of this income comes from the real jobâ€™s circle and part comes from the government jobâ€™s circle.
This circle for the most part has remained the same. The insurance companies and big business try like hell to cut the money going to healthcare, but since healthcare has become a right and not a benefit; it will continue to go up in price. In most cases each individual worker is not making more money because more time and money needs to be spent on governmentâ€™s silly regulations and fees.
The government circle is the largest circle and the most confusing and it is out of control. It is easy to see the folks that run the government and teach in the schools and support our emergency services. But it is harder to see the money spent by politicians on nonsense and the so called infrastructure. These are all necessary expenditures, but the problem is that all the circles need to be in balance for capitalism or socialism to work. This point is where the commies end up wrong. They think you can have all government jobs and some how in their imagination the economy will be fine.
Take the Obama jobs bill, for example. Most of the money spent goes to the government circle and Obama imagines the money going to the real and collateral jobâ€™s circles. Letâ€™s hope that there are a lot of government workers making over $250,000. There is a bunch. If we include their benefits there are more government workers approaching that figure than you want to know about.
So you could be the dumbest person on the planet and if you are tracking with me, we have a problem. And the problem began, not really began but started to get out of hand under Carter. And it has snowballed every year since.
We can create a sub grouping of the government circle called the crooked politiciansâ€™ circle. This is the one like Solyndra. The politicians give the bogus company $500 millions dollars of taxpayer money and they in turn give the Democrats campaign money from that money. In effect the politicians stole the taxpayer money to run for office. What a heck of a cycle. Wouldnâ€™t you want a piece of that action? Step up and become an American politician. It is like another Ponzi scheme. Oâ€™Reilly thinks the government needs to subsidize things like solar energy. He has to be nuts. Just because we subsidized the first atomic bomb, doesnâ€™t mean we have to subsidize an industry that is useless.
But the point here is that the money that changes hands with the politicians always has strings attached to it. Usually the companies make contributions before hand, but you can bet they will make many campaign contributions afterwards. Remember Enron. They gave a ton of money to Hillary and many other politicians. Maybe someone might get smart and consider it a conflict of interest if a politician votes for something that benefits someone who contributed to his campaign. My guess is we have laws like that. They must be hidden away with our immigrations laws in the algore lock box.
With a little bit of intelligence, you can see that the most important circle is the real jobâ€™s circle. The energy and money from this circle drives all the other circles. And since Carter they have been building the government circle and proportionately making the real jobs circle smaller.
What should the Obama jobs bill objectives be? One would be to grow the real jobâ€™s circle, and create more tax revenue coming from the real jobâ€™s circle. This will automatically increase the collateral jobâ€™s circle and its revenue as well. If this is successful then the government jobâ€™s circle could stay the way it is. But if the real jobs circle canâ€™t grow fast enough there will not be enough revenue to pay for the government jobâ€™s circleâ€™s expenses.
One comment to think about. During times like this they drag out things like poverty level and minority stuff. But in the end the politiciansâ€™ concern is not really for the poor, but to keep the government jobs going that are needed to supply services to the poor. That could be why they donâ€™t want to get rid of drugs and an environment that is not conducive to success. If you ever saw how some of the poor live, you should be astounded that the liberals would think that way. But for the liberals it is important to keep all those prison guards and court people and poor peopleâ€™s money dispensers flush with government jobs. But this is not good for the poor. The poor would be better off if they went out and got a real job. They would be happier and would not be dependent on the whims of the government. Letâ€™s teach them how to fish!
You would have to be the dumbest person on the planet if you think Obamaâ€™s job bill would do anything for the real jobâ€™s circle.
He wants to hire more teachersâ€¦ government circle.
He wants to fix bridgesâ€¦ government circle.
He wants to extend unemployment benefitsâ€¦government circle in part.
There is absolutely nothing in the Obama Jobs Bill that will grow the real jobâ€™s circle.
Without growth in the real jobâ€™s circle everything else will continue to contract.
Letâ€™s see, if you are smarter then the president. If you donâ€™t grow the real jobâ€™s circle and you expand by almost a trillion dollars the government jobâ€™s circle will America be worse off or better off in 3-5 five years? Remember the first trillion Obama spent had no real lasting impact that was beneficial. But where it was beneficial it only lasted about a year.
I have to agree with Clinton. Obama should take his jobs bill and shove it where the sun donâ€™t shine. He should not cut spending or raise taxes. Any major change will disrupt the fragile balance between the circles. Politicians do not understand that simple principle! If they did, the liberals would have never passed NAFTA.
Instead Obama should roll back real estate appraisals to May 2008. And freeze the appraisals at that amount for at least 5 years.
Obama should cancel Obamacare. Keep the policy changes that were made that you didnâ€™t need Obamacare for. Let the marketplace work on healthcare not a bunch of crooked politicians.
These 2 steps will not cost the government and the taxpayer a dime and will create millions of jobs. It will actually save the government money. I sound like Pelosi and Obama now! Bad news: If the economy starts to improve by November 2012 because of this, some liberals like Pelosi will get re-elected; I can live with that, how about you?
Dr. Phil Taverna owns and operates his own website.