We’ve heard the fawning of the mainstream media over the Occupy Wall Street movement. We’ve heard the leaders of the Democratic Party, who lambasted the Tea Party with the most vile and vitriolic language, dreamily coo over the OWS people as being true grass-roots, not AstroTurf. What is the truth? The truth can be very disturbing.

Citizens United, Andrew Breitbart and Steve Bannon are in the final stages of a film that rips the mask off of Occupy Wall Street and tells the story, a war story as Bannon puts it, of the puppet masters and the mostly harmless followers that they used.

Lee Stranahan and Brandon Darby moved among the OWS groups and because they used to be activists of the left, they know how to speak the language and not stand out as most conservatives would. They went to Zucotti Park to talk to the protesters. ACORN was paying people $100 a pop to  homeless people to go to Zucotti Park to add to the protesters numbers. Does anyone know of Tea Party members who gathered by the hundreds of thousands in Washington being paid by any group?

The OWS organizer’s goal is to knock down the Tea Party and build up the Occupy Wall Street groups. OWS was the left’s answer to the Tea Party. The main stream media likes to mention the Tea Party every time they report on the OWS groups. But OWS is violent and dangerous. The Tea Party is only dangerous if you believe their embrace of the Constitution is dangerous.

Take a look at the film’s trailer.

http://www.youtube.com/watch?v=uqxA9LMa_0c

Many of the people who went out to protest with the OWS groups were innocents. They were disgusted with the Wall Street bailouts, as were many Tea Party members, and their outrage was sincere. But this was planned and they were being used by the far left puppet-masters behind the movement.

The film is targeted to be released in April. The film is currently unrated, but they are editing it so that it can be widely distributed, but the raw footage is just that, raw. Andrew Breitbart expressed his desire to keep it X-rated so that the full impact of how extreme this movement is, can be displayed. The producers will make sure, however, that it can be distributed more widely. For more information go to the film’s website (http://occupyunmasked.com)

That’s my opinion; I’d like to know yours. Please comment below.

To many conservatives Mitch McConnell is a sellout. To me, he is a parliamentary master who held off a filibuster-proof majority by his fingernails until reinforcements arrived in the person of Scott Brown. He kicked off his address to the crowd with a little humor.

McConnell said that conservatives are more fun because we are always right. He then quoted what Democrats believe in by quoting from Saul Alinsky. It is all about division and smearing your opponents. But it is going to be a tough task with the president’s record.

The president believes in rewarding his friends and punishing his enemies. Examples include: the Keystone pipeline, Solyndra, Goldman Sachs. He preaches diversity and then attacks Catholics.

This is about Obama’s policies. He asked for and received from his Democrat Congress, nearly $1 trillion so that unemployment could be kept under 8% and since then it hasn’t been below 8%. The average length of unemployment under Obama is forty weeks. The unemployment rate for African-Americans is over 14%, for Hispanics it’s 10.5%, for recent college graduates it’s over 10%. He promised to cut the deficit in half and the deficit has been above $1 trillion for the fourth straight year. He ignored his own deficit commission.

Obama believes in bigger and bigger government. Today, the earnings of federal workers is 60% higher than those in the private sector who pay those salaries. Layoffs of federal employees is running at less than 300 per year, meaning there is a higher probability of a federal worker dying of natural causes than getting laid off. Meanwhile Obama has added 150,000 to the federal payroll. We are supposed to believe that there is no possible way to shrink the federal payroll because of how important government is to life in America.

In just nine months we will have a chance to let Obama know what we think of his vision of big government.

That’s my opinion; I’d like to know yours. Please comment below.

While wiping his feet on the First Amendment by trying to force Catholic institutions to bend to his will and force them to provide services that go against their core beliefs, President Obama took time to lecture us on the Bible, and twist it to fit his reelection campaign. This outrage doesn’t get a pass.

The Bible Supports Obama’s Tax Plan

Obama tried to use the bible verse about from those who have been given much, much is expected, as a call from God to pay more taxes. To follow the Buffett Rule, if you will. Here is the verse from Luke 12:48:

When much has been given a man, much will be required of him.

But the context is in terms of doing the master’s will, not paying taxes. When it comes to paying taxes, Jesus was asked specifically about it. Here is that passage:

They sent some Pharisees and Herodians after him to catch him in his speech. The two groups came and said to him: “Teacher, we know you are a truthful man, unconcerned about anyone’s opinion. It is evident you do not act out of human respect but teach God’s way of life sincerely. Is it lawful to pay the tax to the emperor or not? Are we to pay or not to pay?” Knowing their hypocrisy he said to them, “Why are you trying to trip me up? Bring me a coin and let me see it.” When they brought one, he said to them, “Whose head is this and whose inscription is it?” “Caesar’s,” they told him. At that Jesus said to them, “Give to Caesar’s what is Caesar’s, but give to God what is God’s.” Their amazement at him knew no bounds – Mark 12:1-17

When asked specifically about taxes Jesus dismissed them, seeing the political trap. Jesus didn’t say let’s go to Rome and lobby for the least of our brothers. He didn’t say, you know, we need a new government program. He didn’t tell of the Good Samaritan, calling his Roman Senator to pass a new law to provide free health care for victims of highway robbery found laying in a ditch. He said we should take care of such things ourselves, not pass the buck to someone else. So instead of asking the rich like Romney to pay more in taxes, ask Joe Biden how much he gives of the public’s money, that he has been living off most of his adult life, to charity. See if Obama wants to brag about so-called Catholic Biden, giving an average of $1 a day to charity while pulling down a tidy six figure income. Since 2010, Romney gave $7 million to charity. What about the Obamas? Barack Obama and his wife Michelle gave $10,772 of the $1.2 million they earned from 2000 through 2004 to charities, or less than 1 percent. As former Louisiana Senator Russell Long famously said, “Don’t tax you, don’t tax me, tax that fellow behind the tree.” It is hypocrisy at its boldest. But then this president has never been shy.

Wasted Gifts

What should be embarrassing to Obama is that the passage he used really refers to him. Who has been given more than Obama?  He grew up in Hawaii, he got an Ivy League education, he has drawn a salary from the public trough as an Illinois state senator, a U.S. Senator, and President of the United States. What has he done with these gifts? We know he has played golf over ninety times, he has taken long vacations, he plays basketball every week, and rather than meeting with members of Congress he stonewalled them and then blames them for the state we are in. Let’s take the passage from Luke that Obama quoted and back it up a few verses:

The Lord said, “Who in your opinion is that faithful, farsighted steward whom the master will set over his servants to dispense their ration of grain in season? That servant is fortunate whom his master finds busy when he returns.”

It is not the rich who according to Obama do not pay enough taxes that the Bible refers to, but him, who was given bountiful gifts from God but squandered them. What would Jesus say to Illinois Senator Obama who opposed legislation that if a woman went to a hospital to have an abortion and if the child was actually born alive, the surviving child should be given all necessary medical care? Is that caring for the least of his brothers? Is that emulating the Good Samaritan? Is there no level to which Obama will not stoop to get himself reelected? America has had enough of this president. America deserves better.

That’s my opinion; I’d like to know yours. Please comment below.

If you ask conservatives what their number one priority is in the 2012 election, most will agree it is to unseat Barack Obama. Yet unless Rick Santorum can expand his base beyond social conservatives, Newt Gingrich and Mitt Romney may hand the election to Obama on a silver platter.

When Newt Gingrich is good, he is very, very good, but when he is bad he is awful. Romney has not won the hearts and minds of conservatives because of some of his past positions, his fumbling when he should strongly be defending himself, and his personal tar baby, RomneyCare. In the last debate Santorum almost pleaded for a focus on the national issues, but it only took a moment for Gingrich and Romney to roll back into the mud.

Romney has not been able to break out of the 25% neighborhood, but he hasn’t much fallen below it either. Santorum, Romney, and Gingrich each have a win under their belts, but Romney has either been first or second in each contest, which the others can’t claim.

Gingrich can rightfully claim to have led the Republicans out of the wilderness that they languished in for forty years. He can rightly claim that he worked to reform welfare, balance the budget, cutting the capital gains tax, and has worked hard to strengthen conservative causes. He also has some good ideas on taxes. That is what he should run on.

On the flip side, he resigned from Congress when it was clear to him that his own party was not going to reelect him Speaker of the House. In 1997 there was an attempted “coup” where several Republican leaders told Gingrich to step down or be voted out. Newt stood firm and prevailed, but after the 1999 election it was clear that he would not retain the Speaker’s gavel and he resigned. At the time Gingrich said, “I’m willing to lead but I’m not willing to preside over people who are cannibals.” On the one hand, Newt Gingrich through deft political skill got Bill Clinton to go along with welfare reform, balancing the budget and tax cuts which turned Clinton into a demigod among Democrats. On the other hand, his brinksmanship against Clinton, with the government shutdown and his handling of the impeachment, drove Republican approval ratings into the ground. Clinton was a masterful politician, so is Obama.

The Dark Side

In the nomination battle Gingrich has gone after Romney on some pretty bizarre points for a conservative. He has attacked him on being a free market capitalist. The super PAC that backs Gingrich put out a hit piece that was so full of errors, even Gingrich said it should be corrected or pulled. But is attacking free market capitalism conservative?

He attacked Romney for his investments and for having foreign bank accounts when he knew, or should have known that Romney’s investments were in a blind trust. For those who don’t know what a blind trust is, here’s a definition.

A financial arrangement in which a person, such as a high-ranking elected official, avoids possible conflict of interest by relegating his or her financial affairs to a fiduciary who has sole discretion as to their management. The person choosing the trust also gives up the right to information regarding the status of the assets.

The key point is that Romney “gives up the right to information regarding the status of the assets.” How can Newt attack him on his investments if Romney has no control or knowledge over them? So Newt either knew this and hoped no one would notice, or he didn’t bother to find out. Romney seems be more on top of his game, because in the debate when Newt attacked him on investments in Fannie Mae and Freddie Mac, Romney shot right back that Newt had similar investments. Oops! Who would you rather have in the Oval Office, the guy who does his homework, or the guy who shoots from the hip?

The latest attack from Gingrich out today concerns Medicare fraud at a company called Damon Corporation. Damon was involved in Medicare fraud to the tune of about $25 million between 1988 and 1993. Bain Capital acquired Damon in 1989, while Romney was running Bain and he sat on the board of Damon. So according to the timeline Damon was already fraudulently filing Medicare claims before Bain bought them.

When tipped off by whistleblowers an investigation was started and Damon ultimately paid a fine of $116 million. Romney was never charged with any wrongdoing. So what is the point of Gingrich’s ad? Why are Democrats and unions running similar ads to Gingrich’s? This is not a new discovery. It was brought up when Romney ran for Governor in 2002 and a Google search finds a similar reference on a Huckabee blog in 2008. Romney said he learned of the issue and took steps to deal with it, prosecutors disagreed. More facts will certainly come out in the next few days, but it seems that Gingrich is writing Obama’s campaign playbook. It’s one thing for the Democrats to raise these petty issues, but it gives them a whiff of credibility if they can show clips of prominent Republicans mouthing the same charges.

The focus for both of them should be the guy in the White House. For Romney it’s about making the case that he is a reformed moderate and he has moved away from those positions and how he has to convince conservatives of that and of Republicans that he can beat Obama.

For Gingrich, he has to prove that he is not a flip-flopper between pro-free market or anti-free market; between government solutions or government being the problem; about creating an environment for success or demonizing success; about being pro-cap and trade or against the global warming hoax; about endorsing liberal Republican candidates because they can win or backing the most conservative, electable candidate.

I took up commenting on the political scene just before the last presidential election. I don’t want to try to survive another four years of Barack Obama. It will be no consolation to say,”Yeah, but do you remember how Gingrich ripped up John King of CNN?” Retiring Obama is job one.

That’s my opinion; I’d like to know yours. Please comment below.

President Obama, always on the campaign trail, is now on the road trying to explain why his class warfare strategy is not class warfare. In his State of the Union address, he once again invoked the “Buffett Rule”, which is little more than a fig leaf to allow Obama to raise taxes. But what about some other “Buffett Rules”?

Spending

What is the Buffett Rule on spending? Does Warren Buffett agree with President Obama that we should spend 150% of what we take in? Did Warren Buffett become one of the richest men on the planet by spending 150% of what he takes in and borrowing the shortfall? I think Buffett’s counsel would be to live within our means; don’t spend more than you take in, but I didn’t hear President Obama invoke the “Oracle of Omaha” when he submitted his budget to the Senate that was voted down 97-0. I didn’t hear Obama mention spending at all other than to say some nonsense about cutting spending by $2 trillion over ten years. At the rate we are going that level of spending “cuts” will mean we are $8 trillion deeper in debt ten years from now rather than $10 trillion. We need to cut $1 trillion in spending next year. So let’s hear what Buffett has to tell Obama about spending.

Investing

Warren Buffett is regarded as a masterful investor. What’s the Buffett Rule on investing? President Obama took credit for saving the auto industry. Really? If that is his idea of a good investment why does the price of GM stock have to rise to $52 before the American people’s investment to break even? GM stock is currently trading around $25. How many people are expecting GM’s stock to double in the near future? Or is it more likely that union contracts will once again, drag GM beneath the waves? My research indicates that Warren Buffett does not hold any GM stock. I wonder why? I do know that Warren Buffett made a very tidy profit by investing in Goldman Sachs. Meanwhile American taxpayers, you know, the ones who are under taxed, bailed out that company and many others. How much did Buffett invest in Solyndra? How much money is Warren Buffett investing in high-speed rail in California? Why should the American people believe that someone who has never held a job in private industry (Obama) is suddenly the smartest venture capitalist in America? How big of a portfolio do the real venture capital firms put in the hands of new hire fresh out of college? But this president takes billions of our tax dollars and squanders them on his pet projects and then lectures us how we need to invest in our future when they go belly up. When is Warren Buffett going to tell him to stop?

The Buffett Rule on Taxes

At the State of the Union address we were introduced to the famous secretary of Warren Buffett. She’s the poor woman who pays a higher tax rate than Mr. Buffett on her income. It is estimated that the poor dear makes between $200,000 and $500,000, otherwise she would not be paying double the tax rate of Buffett. That could put her solidly in the top 1% of earners in the country, if she is at the high-end of that range (the top 1% is earnings above $343,000). So Barack Obama actually lamenting that the top 1% is over taxed? Of course not. It is not about who is paying too much, it is about who is not paying enough.

The problem is spending, plain and simple. There are not enough rich people in America, even if taxed at 100% to close the budget gap. What Obama is doing is class warfare. Let’s get people angry enough at the wealthy so that Obama can then link the wealthy to the Republicans and sneak back into a second term.

If Obama thinks he is playing by the rules, Buffett’s rules, then he should at least play by all of them.

That’s my opinion; I’d like to know yours. Please comment below.

Rick Santorum timed the wave perfectly and rode it to within eight votes of Romney in the Iowa caucuses. Whether it was timing or real support is not certain, but where does he go from here, and I don’t mean geographically?

In the 1964 Olympic 10,000 meter race there was an American named Billy Mills. Back in those days they ran on a cinder track and after a while the track would get chewed up and you would lose a little push on each step, sort of like how it feels running on the soft sand of the beach compared to the packed, wet sand down by the water. Toward the end of the race there was some jostling and Mills got bumped out a couple of lanes, but he found firmer footing there and started gaining ground, ultimately taking the gold medal. Rick Santorum in Iowa reminds me a bit of Mills. He chose to run on social issues, while the other candidate focused on economic issues. This gave Santorum some traction with those voters who felt strongly on those issues. But to quote former Clinton adviser James Carville, “It’s the economy, stupid.”

Santorum’s strategy gained for him one of the coveted “tickets out of Iowa.” Well done. But that strategy won’t carry him very far in the nominating process, and definitely not in the general election. He needs to shift his focus to the economy and come up with something bold, if he hopes to beat Romney. If you go to Santorum’s web site and dig a little he has some sensible economic proposals, but they are too timid. If he want’s to beat Romney he needs to put more daylight between him and his opponent’s plans.

For example, he calls for cutting $5 trillion over five years. Mathematically that may not be very different from Ron Paul’s cutting $1 trillion in one year, but if so, just say it. Who knows if Santorum will be around in five years if he was to get elected and in Washington all spending cuts seem to come at the back-end of any time period, while tax increases always happen now. It didn’t take Obama five years to find a way to add more to the national debt than every president since Washington, combined, so why should it take five or ten years to unwind that disaster?

On taxes, he needs to be bold. If you read the tax policies on his website, it is a tweak here and a tweak there. Cain, Gingrich, and Perry all had bold plans. Scrap the IRS and you will add hundreds of billions of dollars to the economy, without raising a nickel in taxes. It may increase unemployment among tax preparers, accountants and lawyers, but that will be more than offset by businesses adding jobs with resulting from their new-found windfall. Eliminate the payroll tax. Congress has revealed what a fraud that is by creating a payroll tax holiday and then saying the Social Security Trust Fund will not face any shortfall. Why have multiple tax structures and mechanisms and associated bureaucracy if Treasury will just shuffle the money around as they see fit anyway? Why not pick up Cain’s 9-9-9 plan? Cain is out of the race, but Santorum would almost immediately pick up Cain’s support and many of his followers. Hell, for that matter, he should be even bolder and ask Cain to be his running mate if nominated.

Without a stark choice, Romney will probably end up the nominee. If Romney doesn’t start convincing conservatives that he has mended his ways, they may choose to stay home, but if they do, I don’t want to hear any griping about Obama if he gets reelected. If Santorum is bold, it will force Romney to be a little bolder to protect his right flank. If nothing else, we need whoever is the nominee to be battle hardened for the general election. This one won’t be pretty.

That’s my opinion; I’d like to know yours. Please comment below.

In his recent telephone town hall meeting, Tim Bishop expressed his support for the continued payroll tax holiday but making it clear that it would have no impact on the Social Security Trust Fund. Money for Social Security would continue to go into the trust fund from other sources. What other sources you might ask? I may have an answer for you.

In an article in HousingWire magazine, the author points out that:

The Federal Housing Finance Agency will increase guarantee fees on single-family mortgage-backed securities charged by the government-sponsored enterprises by 10 basis points effective April 1, 2012, in response to the new funding mechanism for the payroll tax cut extension passed by Congress.

So it seems that the Social Security Trust fund will get its money from Fannie Mae and Freddie Mac, or more accurately, from new home buyers. So for a two month extension of the payroll tax holiday that will prevent taxpayers from paying an additional $130 into the Social Security Trust Fund, that everyone expects to get back anyway, new home buyers will have to pay thousands in new fees.

The g-fee increase will remain in effect through Oct. 1, 2021. The Congressional Budget Office estimated the g-fees would offset about $35.7 billion in the costs of the tax cut. Mortgage Bankers Association CEO David Stevens said the increase could mean an extra $4,000 in fees on a $200,000 mortgage.

One of the problems facing Long Island is affordable housing. Our young people are leaving Long Island for areas were there is a larger rental stock that they can start out in, rather than living in mom and dad’s basement, and where they can afford to buy a house after saving a down payment for a couple of years. Apparently for the benefit of a political talking point Tim Bishop votes to slam an already weak housing marking with additional fees. After all who can really call a two month anything sound fiscal policy? Notice there is no spending cut mentioned here, it is an increase in taxes and fees. This is what Tim Bishop was telling his constituents not to worry about in his town hall meeting? What will become of his district, if nobody lives here but retirees? Is that his plan to solve the unemployment problem? Drive enough young people away until the number of jobs fits the remaining population?

The problem is spending. It was only last week that Joe Biden was attacking Mitt Romney’s policies by saying:

“His proposal would actually double down on the policies that caused the greatest economic calamity since the Great Depression and accelerated a decades-long assault on the middle class,” Biden added.

Decades long assault on the middle class? I guess he means you too, Bill Clinton. The greatest economic calamity since the Great Depression has been the Obama administration and if he were to get reelected it would finish America off. We have had the worst consistent unemployment since the Great Depression for the entire Obama administration. We have had the worst record of job creation, loss actually, since Herbert Hoover. The National Bureau of Economic Research says the recession ended in June of 2009. Does it feel like it to you? Most recoveries from economic downturns are mirror images of the slump. A gradual recession is followed by a gradual recovery; a sharp downturn is followed by a sharp upswing. Not this time. Just look at the job creation record of Team Obama.

This chart goes all the way back to Harry Truman and Obama’s performance stands alone.  Let’s put to rest the “eight years of failed Bush policy, yada, yada, yada” and face the fact that Obama and his spending, heavy-handed regulations, and insatiable appetite to fix everything by taxing more has put us into an economic winter. Tim Bishop has happily ignored the needs of his constituents to buy favor from the Democratic leadership and their special interest pals. They have done an awful job and we need to turn them out, before they turn us into Greece.

That’s my opinion; I’d like to know yours. Please comment below.

Tim Bishop has submitted legislation to punish firms that use overseas call centers. He is desperate. He needs an issue that he hopes will sneak him past the electorate into office for another two years. Outsourcing worked for him last time, so he is trying to put lipstick on that pig and pass it off as bold, new thinking. What I am thinking is when is Tim Bishop ever going to represent the people who actually live in his district?

How many call centers are in his district that are threatening to move overseas? How may call centers are trying to decide between locating in his district or locating in India? If the answer to either of the above questions is none, why is he spending time on this?

Over twenty years ago, while working at Citibank, they had a customer service center for credit cards in Melville. For cost reasons they were looking at shutting it down and moving it. I was asked to provide an analysis of the telecommunication costs in an effort to keep it in place. Based on the customer distribution, I showed that its current location was the best choice from a telecommunications basis, but it was not enough to offset the people cost. The alternatives considered were Maryland, South Dakota and Nevada. India was not on the list. But if you were a customer service rep on Long Island who didn’t want to move, was the fact that the job was staying in America, give you consolation? Your job went away

So what is Tim Bishop doing starting a trade war with India? How does that help his constituents?

 ”Outsourcing is one of the scourges of our economy and why we are struggling so to knock down the unemployment rate,” said Bishop.

In a previous post on Mr. Bishop’s insightfulness I pointed out that the largest Toyota factory outside of Japan is in Georgetown, Kentucky. Through a new free trade agreement that plant will now begin exporting Toyotas from the U.S. to South Korea. If Toyota didn’t outsource those jobs to the U.S. but kept them in Japan, there would be 7,400 fewer Americans employed in Kentucky than there are today. So how does Bishop square this with his statement that outsourcing is a scourge and contributes to unemployment when this is proof of the opposite? Perhaps if our tax structure wasn’t so abysmal, other companies would locate their factories here? But we have one of the highest corporate tax rates in the world, so why build here? But when was the last time you heard Tim Bishop pounding the podium for lower tax rates?

With the stimulus plan, Congressman Bishop voted to spend a trillion dollars across the country to be paid for by whom? Well, consistent with the Democratic message of “tax the rich”, when compared to other states, New York is relatively rich, so we get a bigger share of the bill and a smaller cut of the benefits. How did Congressman Bishop’s vote help his district? Most of the money that did come here went to people who already had a job, and a union card, the teachers. Who is backing Mr. Bishop on his phone center folly? The Communication Workers of America. Bishop knows he needs union muscle if he has a prayer of getting reelected.

He also likes the idea of the payroll tax holiday and tells people at his town hall meeting, not to worry about the Social Security Trust Fund losing important funding, that money will come from elsewhere. Where exactly? Does Mr. Bishop have some magic beans or a goose laying golden eggs like a gatling gun? We’re broke thanks to Mr. Bishop and his pals spending, spending, and spending.

So Tim Bishop looks out for Tim Bishop first, Nancy Pelosi second, and if he can help his constituents cut through some bureaucratic red tape, cut through it but not eliminate it, he will do so. But he needs something, anything, to take the voters eyes off his dismal record in Congress, so let’s try another new twist on outsourcing, whether it is germane to his constituents or not. After all, where else is Tim Bishop going to land a job that pays $174,000 a year with his resume?

That’s my opinion; I’d like to know yours. Please comment below.

Congressman Tim Bishop held an online town hall meeting to hear questions from constituents and give his answers. Perhaps he thought this a safer forum than a live town hall meeting. Last year’s meeting in Setauket did not go well and was soon viral on You Tube.

I will comment on three of the topics from that meeting: the payroll tax cut, regulations, and manufacturing jobs.

Payroll Tax Cut

Congressman Bishop came out heavily pitching the extension of the payroll tax cut, from the normal level of 6.2% to the current level of 4.2% and even to go lower to 3.1%, for at least another year. He made the startling claim, quoting some experts that if the payroll tax cut wasn’t retained it would cost 400,000 jobs. It must be from the loss of all that spending power generated from a 2% cut in the payroll tax. I am sure pizza parlors will be devastated, as the weekly savings to a typical family will be about the cost of a pizza pie. The other statistic was that if the payroll tax was cut further to 3.1%, 750,000 new jobs would be created. Interesting. Raise the tax by 2% and 400,000 jobs would be lost, cut it by an additional 1.1% and nearly twice as many jobs would be created. Like prior predictions of how government intervention would affect jobs, we are supposed to believe that employers will start hiring if the cost of hiring a new employee  is reduced by 3.1% for just one year, before going back up. Only those people who never worked in private industry, like Bishop, Schumer, Obama, would believe that.

Bishop insisted that these cuts would have no impact to the Social Security Trust Fund. Considering that there is nothing in the Social Security Trust Fund other than a bunch of IOUs from Uncle Sam’s other pocket, he may be correct on that front, but he said that the cut would be paid for cutting spending elsewhere. Not surprisingly, he didn’t say where exactly “elsewhere” was.

Throughout the call, Bishop’s press secretary was conducting a dopey poll. To paraphrase, “If you are in favor of the payroll tax cut that will put $1,500 in your pocket, press 1, if not, press 2.” Who wouldn’t press 1? What would the results be if he asked, “If you are in favor of borrowing $600 from China that your children and grandchildren will have to pay back, so that we can give you $1,500 today, press 1, if you think more borrowing and debt is a bad idea, press 2,” I think the poll would turn out quite differently.

Regulations

A caller who owned a small construction company asked about all the regulations and paperwork that businesses had to deal with. Bishop said that President Obama had things well under control forming a commission to “zero base” all regulations and hundreds and hundreds of regulations have been taken off the books. In the Wall Street Journal today there is an editorial titled, “Regulation for Dummies,” that paints a very different picture.

To answer the most basic question—has regulation increased?—we’ll focus on what the government defines as “economically significant” regulations. Those are rules that impose more than $100 million in annual costs on the economy, though there are hundreds if not thousands of new rules every year that fall well short of that.

According to an analysis of the Federal Register by George Mason University’s Mercatus Center, the Cabinet departments and agencies finalized 84 such regulations annually on average in President Obama’s first two years. The annual average under President Bush was 62 and under President Clinton 56

As the graph clearly shows the number of “economically significant” regulations under Obama has skyrocketed. This is what is causing the uncertainty that is hindering employment. How can this be curtailed? A bill just passed in the House of Representatives called the “Regulation from the Executive In Need of Scrutiny Act (REINS)”. This would require any of these economically significant regulations to be sent to Congress for approval before becoming being enacted. What the process is today is that Congress can vote against regulations, but that can be vetoed by the President. If the regulations are coming from the president, wouldn’t you expect him to veto it? This turns it around so that the Congress has to approve the regulations, if they don’t, there is nothing for the president to veto. The Democrats say this is a Congressional encroachment of the Executive.

“The REINS Act would undermine our ability to protect children from harmful toys, prevent asthma and lung ailments resulting from pollution, and ensure that our small businesses can compete fairly in the marketplace,” House Minority Whip Steny Hoyer added. “At the same time, it would force Congress to play a larger role in the regulatory process, leading to even more gridlock in Washington.”

Surely he forgot to mention killing bunnies in there somewhere. But let’s look at the process: Congress passes a law; departments in the Executive branch write regulations to carry out the law Congress passed. So why is it an outrage that Congress reviews economically significant regulations to see if the Executive is actually implementing what they passed? Tim Bishop voted against the REINS Act. This is another case of Democrats focusing on piddling regulations while saying “hands off” the really impactful ones.

Manufacturing Jobs

Another caller asked the Congressman about manufacturing jobs. He patted himself on the back for helping to bail out the auto industry. He said if he and others hadn’t done that that hundreds of thousands of jobs would be lost. I addressed the implausibility of this in an earlier post. In that post I argued that if GM and Chrysler went bankrupt and even if they didn’t come out of it leaner and meaner, people still needed transportation. They would buy Fords, Toyotas, Nissans, Hondas, etc., that are currently built here in the U.S. Those car companies would need to increase their purchases from suppliers and those who formerly supplied GM and Chrysler would be well situated to supply the remaining car companies. The argument that we don’t manufacture here anymore is a myth. On a dollar volume basis, we still manufacture more than any country on earth. A few miles from where I am writing this, in Georgetown, Kentucky, is the largest Toyota factory outside of Japan. Due to a free trade agreement with South Korea that the Democrats blocked for years, that Toyota plant will begin exporting about 6,000 Camrys a year from Kentucky to South Korea.

One of the reasons we don’t build more here is our lousy tax code. Fix it. A reason there is not more manufacturing in Mr. Bishop’s district on Long Island is high electric rates. Factories run on power and power on Long Island is expensive. One of the reasons for that is that government approved the building of a $5 billion nuclear power plant on Long Island, and then when it was ready to throw the switch, they changed direction and said it couldn’t open. So Long Island rate payers had to find and buy electric from other sources and pay for the mothballed plant that produced nothing. Once again, the government helping us out.

But Tim Bishop has a solution. He wrote a bill to ban offshore call centers from federal contracts or loan guarantees for five-year. Nothing like micromanaging a corner of the economy while the rest of it burns. Why not look to the root cause? Tax structure, too much regulations, ObamaCare, out of control government spending. If Congress would fix those problems maybe companies wouldn’t look offshore to set up call centers.

The Budget

Tim Bishop also touched on the deficit and debt. He said we need to cut spending, but he never said what he would cut; he said we needed to control entitlement spending, but he didn’t say how he would do that; and he said we needed to add revenue, but he knew exactly how to do that, tax the rich. Here’s how I see it. The government got us into this mess by spending too much money, they should get us out of it by spending less money. Asking for any more tax revenue is just shirking their responsibility for which they are paid handsomely, and passing the problem on to us. Who couldn’t solve the problem with enough money?

That’s my opinion; I’d like to know yours. Please comment below.

With the economy in shambles and his campaign sound bites and early interviews as president coming back to haunt him, President Obama has ramped up the class warfare rhetoric. Let’s put the lie to these strategies.

The Payroll Tax Cut

The issue here is that President Obama wants to help the middle class and he claims the Republicans do not. The famous payroll tax cut puts about $8 a week in the pocket of individuals. But everyone who pays the payroll “tax” expects to get every dollar back, and then some, after they retire. So what is really going on here? The government forces you to participate in the Social Security system. It offers a lousy rate of return compared to alternatives and if you die before you start collecting, everything you paid into it is gone. Your heirs get nothing. If Obama believes in cutting back on payroll taxes, why not convert everything to private accounts and eliminate the tax altogether? Let people save for their own retirement. Let them put more away in the good times, and be able to scale back in the bad times.

The Republicans are not opposed to Obama’s plan, their only requirement is that we cut somewhere else in the budget to make up for the shortfall. This is nothing new. Former Kentucky Senator Jim Bunning raised this very point nearly two years ago, when the Democrats held both houses of Congress. In this enormous government can’t we find anything to cut? Find the cuts and the Republicans will sign on. If not, this is just another case of piling debt on our children and grandchildren, because they will have to make up the difference when we retire.

Taxing the Rich

This week we saw former senator and former New Jersey governor, Jon Corzine testify before Congress to say how sorry he was that he couldn’t find over a billion dollars of his customer’s money. But since he resigned from MF Global he doesn’t have access to any of the records to help in the search. Is the Justice Department beginning a criminal investigation?

Has anyone been charged with a crime for what happened in the fiscal meltdown of 2008? Has anyone collected more campaign cash from Wall Street than Obama? So is it unusual to conclude that President Obama, other than giving speeches, is perfectly fine with Wall Street ripping off the American people, as long as he can rip off the most successful people in America and claim he is looking out for the little guy. Let his pals get boatloads of government money to bail out their companies so they can keep getting richer and then say he wants to tax them more. Is it any surprise that a lot of rich Democrat supporters are coming out and saying they are all for paying more. Who wouldn’t?

President Obama says you can have billions of tax dollars and I just want a kickback in the form of higher taxes so that I can keep spending recklessly. However, ask anyone of these guys to write a check to the Treasury voluntarily, and they all balk. Why? Nobody gets any credit for donating their money to the government. They want the government to take it, not just from them but from every successful business person.

An Economic Winter

If President Obama gets another term, we may face an economic winter from which we may never recover. If the last three years were painful, the next four could be even worse.

That’s my opinion; I’d like to know yours. Please comment below.