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Posts Tagged ‘Stimulus Plan’

Barak Obama, beginning to lose ground in the polls is seeking a boost in the polls from his forthcoming visit to Moscow . The President is currently promoting transformational legislation on numerous fronts including health care, global warming, and renewable energy. He is also directing unprecedented government intervention in the auto, finance and banking industries at the same time as he attempts to rewrite history as it relates to the American Recovery Act or as it is affectionately noted by the press, Obama’s stimulus plan.

Today at a Town Hall meeting to promote his health care reform legislation Obama again thanked the House for passing a cap and trade bill that promises to be the largest tax increase in history should the 1200 page bill be passed by the Senate and signed into law by the President. Obama also took advantage of the occasion to announce that his stimulus plan has been a success.

The President makes this announcement at a time when unemployment is hovering at 10% and consumer confidence is again receding. Ceo4aday has written extensively on the American Recovery Act and the fact that Obama’s stimulus plan was really an entitlement program designed to stimulate increased union labor on government funded projects.

The $787 Billion dollar American Recovery Act has done little to aid an economic recovery that is hindered by high unemployment and a tight credit market. The reality of Obama’s stimulus plan is that despite his constant self promotion he did not provide America with a stimulus plan. He has saddled America with an historical deficit that promises to bankrupt the nation.

The President’s trip to Moscow is designed to distract Americans from the economic strife we are currently engaged in and focus our interest on Barack Obama’s attempt to rid the world of nuclear armaments. No doubt he will engage in an apology for America’s role during the cold war and more importantly for forcing Russia in the guise of the former Soviet Union into the cold war.

This President has made numerous gaffes as he has represented America on his trips abroad. It is fitting that the American President who is least interested in protecting the Independence of America will be again be presenting himself to the world stage only two days after the nation celebrates the fourth of July in a nation that established the benchmark  for totalitarianism in the twentieth century. A country that continues to explore its own unique form of capitalism while Obama promotes a progressive toward Socialism for the United States.

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The economic stimulus package that Congress agreed to with the White House yesterday, was originally thought to have been expected to be scheduled for a vote in the House today. The vote now appears to be postponed until tomorrow, while legislative language is still being added and deleted to the bill.

The package which had been discussed and debated for several weeks in both houses of Congress and across the universe of economic punditry, prior to President Obama becoming becoming President, has had more rewrites than an Oliver Stone film. Affectionately referred to as the American Recovery and Reinvestment Plan, the package which promises to create or at least save 3, 3.5 or even 4 million jobs pending the spin of the day.

Though we have not seen the latest version of the stimulus plan, we have watched the plan assume Everest proportions of spending as it hurdled toward a trillion dollar package. We are now asked to believe that sanity has returned to the Congress as the economic stimulus bill will be less than $800 Billion.

The premise behind any stimulus package should be to quickly inject extraordinary stimulus into the economy, thereby increasing consumption, decreasing supply and creating demand for additional goods and services to be produced or provided. In turn, the increased demand moves through the economy in a multiplier effect that at worst will result in eliminating further job cuts in the economy and should create new employment.

The challenge, with the soon to be revealed and approved package, is that it will fall short on real stimulus initiatives by limiting tax cuts and credits and not allowing additional incentives for business investment. The stimulus package is representative of a bill that was prepared by a Democrat party that is indebted to a variety of special interest groups and is out of touch with or fails to understand the fundamental aspects of our economy. We have a Democratic Congress, that is more concerned about levelling the playing field relative to executive compensation than it is concerned about creating the proper fiscal environment for those executives to expand their businesses and create additonal employment.

A stimulus package should encourage private investment to create sustainable employment via the appropriate tax cuts and investment credits. It should allow for substantive tax credits for home purchases and provide merchandise vouchers to all taxpayers with a finite redemption period. these initiatives would  provide substantially greater stimulus than the package that has been rumored to have been agreed upon which will only result in big government becoming bigger and more intrusive in our economic lives.

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