A relatively minor program captured the headlines over this past week end and promises to continue to arouse partisan political passion through this week until the final disposition of the ” cash for clunkers ” program is determined. The White House is very much in favor of continuing the program which has burned through the initial one billion dollars that was allocated to the automobile purchasing stimulus.
The program provides for a $4,500. trade in on older automobiles. The program was so well received by consumers that the program quickly ran out of money. Last week the House quickly approved an additional two billion dollars for the program and the Senate is debating the issue this week prior to the beginning of the August recess.
With an economy in recession and the majority of voters deciding that the stimulus plan provided by Barack Obama under the guise of the American Recovery Act has been a dismal failure, it is no wonder that the White House is promoting the “success” of “cash for clunkers”. It is most likely the Senate will pass an appropriation to continue this program since the auto industry is a Government preferred industry as demonstrated by the bail outs provided by both the Bush and Obama administrations.
Ceo4aday believes that programs that stimulate the purchase of durable goods are welcome and truly provide a stimulus to the economy but do not believe they should be discriminatory. We have long advocated a program that is not discriminatory that would put dollars in the hands of consumers through a federal voucher with an expiration date that would expire within a specific period of time. The program would consist of a spend it or lose it clause and the monies distributed to tax payers should be allocated on a proportionate basis per actual taxes paid.
Funds from the American Recovery Act could be reallocated from their current entitlement and union subsidization program to fund real stimulus. Under this plan all tax payers would receive in effect a rebate on prior taxes paid which would provide an economic stimulus across all sectors of the economy as opposed to being sector specific like “cash for clunkers”. It would also be class inclusive as opposed to previous attempts at consumer stimulus that omit those at the top rungs of the economy.
We recognize that the likelihood of reallocating funds from the American Recovery Act and converting them to real stimulus dollars is unlikely. The Obama administration and the members of Congress that rushed through this partisan $787 Billion bill during the first weeks of the new progressive administration would be reluctant to alter its current structure in any way that would divert funds away from the numerous liberal programs that were included in the bill to satisfy the various special interest groups of the left.
Obama “Recalibrate” Agenda: Focus On Economy
Posted in economy, politics, tagged Age of Austerity, American Recovery and Reinvestment Plan, Bail Outs, Barack Obama, business, CEO, class war, commentary, congress, main street, news, politics, recession, Republicans, wall street, White House on July 25, 2009| Leave a Comment »
Harry Reid, the Senate Majority Leader announced this week that the Senate would delay any action on a health care reform bill until after the August Congressional recess. The delay in Senate action has been caused by an inability to develop an acceptable compromise between liberal Democrats, willing to agree to any bill promoted by the Obama administration and moderate Democrats and Republicans who are unwilling to agree to a government take over of health care that will increase the federal deficit, lessen the quality of health care and increase the burden on American tax payers.
Delaying the process in the Senate will most likely cause a delay in the House which following the August recess may lead to the ultimate death of health care reform as elected officials hear an increasing roar from a public that has become disenchanted with the idea of placing their health care in the hands of an administration that is increasingly being perceived as being less than forthcoming with the real costs of health care reform as well as the quality of service to expect from a government mandated program.
Barack Obama is keen on stating that he is enacting the change that Americans want. He is correct that Americans voted for change when they elected him President last November but the change that this President has brought to date and the changes he continues to propose are reflective of a classic political bait and switch. President Barack Obama has failed to deliver on the promise of candidate Barack Obama. This should hardly come as a surprise given the President’s thin resume of leadership. Other than his campaign Obama had never had any management experience.
Six months into office and obama’s inexperience weighs like a wet blanket upon an economy that is struggling to heat up. His self promoted and much touted stimulus plan, the American Recovery and Reinvestment Plan of 2009, has proved to be the debacle that opponents of the bill had opined that it would be when the partisan bill was rushed through Congress with out being read and was subsequently signed by the President who had promoted the bill as a job savings and creation bill. The President’s pronouncements on the bill have under gone some ‘recalibration’ as the President and his administration now refer to the stimulus as having a longer term arc than would be expected with the urgent passage of a stimulus bill.
In retrospect the Obama administration will have proved to have miscalculated American’s tolerance for the political sleight of hand that is the stimulus package. The proposed take over of the Health Care industry by Obama in addition to the energy and safe climate act that narrowly passed the House is making Americans uncomfortable and testing their patience with this administration during a period of rising unemployment and a challenged economy.
The majority of the nation are expecting the President to adjust his priorities and focus on the economy rather than attempting to save the earth through the building of windmills and saddling the nation with an ill conceived health care program.
Read Full Post »