Let's see, since Obama took office as President, the stock market is down around 30%, unemployment is up, the deficit is on its way to an incredible $3 trillion and pork barrel spending is out of sight. As the economy continues to sink, with Americans having lost $3 trillion in wealth, according to Investor's Business Daily, Obama continues to aid corpse corporations with no value.
Recessions traditionally are to clean up the excesses of the last boom. To be fair to the Democrats, Clinton, Bush, and Obama bear responsibility for what has occurred. The current problem is to clean things up ASAP and move on, not prolong the agonizing with aid to GM, AIG, Citicorp, etc.
It really seems to TCR, that President Obama is more concerned with a monster boost to the federal government, while reducing the private sector in the charitable area (as part of the proposed axing of deductions).
One other question, where does the President think he can find the funding for these historic debts? Savers in the U.S.? China? Other foreign investors? Or the area that TCR fears most, the printing press (which will lead to a large increase in inflation and in the gold price). In fact, some respected economists suggest hyperinflation and the demise of the U.S. dollar is in our future. Many are predicting the dollar losing 75% of its value within 2 to 3 years. Under such circumstance, cash in bonds, CDs and other bank accounts will be hit hard. Not a pretty picture.
So far, no answers from the White House. As conservatives, we need to lay out our answers. The best idea TCR has heard is a 4 month federal tax holiday, that should get the economy moving.
Unemployment Compensation, Taxes
And The Federal Stimulus
Last spring with the Texas economy showing few signs of distress and with great fanfare, Governor Perry reduced the unemployment tax on employers.
Almost one year later the fund from the tax is $500 million in the hole and rising rapidly. It's now clear the tax cut was ill advised and was done so the Governor could bolster his tax cutting credentials. By doing so, he put the unemployment funds in trouble. To be fair, given the rapidly descending Texas economy it would be in debt anyway, just not as bad.
The federal stimulus offers more money to Texas and requires some changes in the law. So as conservatives, are we in favor of unemployment for part-timers, they work too? Are we in favor of raising the benefit, which will increase taxes? And as unemployment heads to 8-10% and many can't find jobs, do we favor expanded eligibility and lengthening of payment so workers don't end up on welfare?
Texas should consider the opportunity to get additional federal funding on the merits, not on political posturing for the 2010 GOP Governor primary.
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About Your Editor
Gary Polland is a long-time conservative and Republican spokesman, fund-raiser, and leader who completed three terms as the Harris County Republican Chairman. During his three terms, Gary was described as the most successful county Chairman in America by Human Events - The National Conservative Weekly. He is in his twelfth year of editing a newsletter dealing with key conservative and Republican issues. The last seven years he has edited Texas Conservative Review. Gary is a practicing attorney and strategic consultant. He can be reached at (713) 621-6335.