A takeover of the House of Representatives
by the republicans should not in any way cause President Obama to want to stop the Bush tax cuts from expiring.And let me be clear,even if the small companies who seem to always be in the conversation as a reason for extending the Bush tax cuts didn't even have the Health Care reform uncertainty in the equation and the Bush tax cuts were extended they still wouldn't hire.All of this is just a big cloak and lie.The real reason the republicans want to get the Bush tax cuts extended is because they are in bed with wall-street and they know that the elite wealthy who will benefit the greatest if the Bush tax cuts were to be extended will only invest this new found wealthy into company stocks of companies that have outsourced or to save this money until they fully study stock options.But in my opinion they will not invest in America for the most part.
But allowing them to expire will go along way towards paying for a lot of the things that the government was going to have to just borrow.And adding to the debt right now may not be the best policy.
It looks to me like two years of gridlock will occur with the republicans attempting to use any gridlock action in a political way in starting the presidential campaign for 2012 since they know that the good jobs are not going to be coming back any time soon.
Will someone please tell me why I can see right through the republicans real agenda while no one else seems to be able to do this.
Why allowing the Bush tax cuts to expire will not hurt the economy or the Democratic party politically.
Here, then, are 10 Republican Lies about the Bush tax cuts:
We must allow the Bush tax cuts to expire even if this means that the taxes for the middle class will also go up because the republicans "the party of no"will undoubtedly vote down any measure that would help the middle class but not the wealthiest of Americans.This rise in taxes will not hurt the economy because not much spending is happening right now anyway.And until we can correct the damage that was done by allowing all the outsourcing of good jobs to places overseas like China etc the middle class which is the base here in the United States will not be able to get back to the spending levels that can drive this economy back to levels not seen in a while.But by allowing the Bush tax cuts to expire it will help the democratic base and Obama politically because number one---Obama will have stuck to his guns,and number two--since our economic problems are very complex by nature with a lot of different items within that need to be corrected it should be of no surprise that this will take time.
This blog contains specific points about the blame game.It will describe in my opinion why everyone should reconsider how they view why the republicans knew that the Clinton signing of the housing bill was actually an attempt to help create good paying construction jobs while other manufacturing jobs were being lost.But it also contains specific information as to why the outsourcing of jobs has had a killer effect on the middle class.George Carlin stated in this video that the elite wealthy are actually the ones that are in complete control of the country.But he didn't ever know of Obama when this video was filmed nor did he know that Obama would go against wall street and the big banks and get the financial reform bill passed.They don't like this bill very much and this makes me very happy.
If President Obama allows the Bush tax cuts to expire Jan.1 2011, this will not hurt him or the democratic party politically.I need to declare right here right now that I myself would feel really good if the Bush tax cuts are allowed to expire even if it means that myself and all other people in the middle class will have to pay slightly higher taxes as well.After these tax cuts expire this will set Obama and the democratic party up to make some really good plans such as tax cuts for small businesses to buy equipment and to expand and to hire more American workers.This is what the far right was trying to claim until they were called out on this claim by reminding them that no new jobs were created during all the time that the Bush tax cuts were in place.Because in case you haven't noticed the far rights claims of why they should be extended have dramatically and suddenly changed.Just last week the main claim of why the cuts should be extended was because the far right was saying that by doing so more investments will be made in small business and that this will lead to job creations.But now suddenly and I guess lots of people including myself have said that the Bush tax cuts didn't help create jobs before so why do they think they will now.I had even been saying what the elite wealthy would do with the extra money if the Bush tax cuts were extended, and that was to invest the money in companies that had outsourced to China.Because these companies are making the best dividends because their good profits are tied directly to the low wages they pay their workers.Of course this greedy methodology does not not help the economy here in the United States.
President Barack Obama told Chinese Premier Wen Jiabao Thursday September 24th,2010 that China must do more to revalue its yuan currency, in a "candid" two-hour meeting, which did not appear to shift Beijing's position.They have been getting away with this for so long that are getting real used to it.
During Thursday's meeting, Obama mentioned the two WTO complaints his administration had lodged against China in recent days -- in what may be seen as a deeply veiled threat of more US action if the yuan does not rise.
"The president made clear through that, and in this meeting, that he is going to protect US economic interests and that we look for the Chinese to take actions," Bader said.
"If the Chinese don't take actions, we have other means of protecting US interests."
So now the far right seems to be saying that by extending the Bush tax cuts for at least a year or two that the increased spending will help our economy.I say that is hogwash.Why will it not help our economy a lot of people will probably be asking.My answer to anyone asking this very question is as far as a very small tax cut for the middle class this will only lead to a mini boost to the economy like eating out one or two times per week and possibly a new pair of shoes for people that are working at a retail or fast food place making at or near minimum wage.Yes I agree that when the minimum wage law was passed that it did help the economy a little but what we really need is to somehow start to regain our manufacturing jobs that we lost.Then for the declining number of people who are actually in the middle class making middle class wages the boost in the economy that this group might help will be in the line of another very small economic boost because of purchases such as a few Christmas toys for their kids.The people in this group are in a little better position to charge these purchases and some probably have Christmas club money to spend but my point is that they can afford to charge and would be making these purchases anyway.But for the people making over %250,000.00 per year this will not help the economy hardly at all.Because in most cases these people have already purchased just about everything they want.Oh it might spike the economy a very small amount for a very short time but for the most part a lot of these people in the class of making over $250,000.00 per year will only be making decisions as to how and where to invest the extra money.And I can tell you that for the elite wealthy class of those making $900,000.00 and up they won't be investing the money here in the United States when they know that they can get greater returns by investing in company stocks where a company has long since outsourced it's work by building a company over seas like China where the labor is cheap.
But by allowing the Bush tax cuts to expire we will be taking in money to the treasury, and at the same time Obama can work on the long term plan that is necessary for everyone to get on board with what everyone should see by now that it will take to get this economy back on track.Because the damage that Bush did in his eight years will not be repairable overnight.The percentage of good middle class paying manufacturing jobs have dropped dramatically in the last 25 years and percentage wise even more during the Bush years as millions of good paying middle class jobs were lost due to outsourcing jobs to China.
It is almost like people ,and especially republicans either try to block out or just conveniently forget how focused Bush was on destroying the unions and the middle class here in America by rewarding the outsourcing of jobs.Kerry and Edwards battled Bush in 2004 about his plan to kill the middle class in America.
Bush economic officials consistently were defending tax breaks for companies that outsource jobs.Subsidizing Job Destruction with
Taxpayer Dollars
George W. Bush actively supports tax breaks
that reward companies more for shipping
jobs overseas than for creating them here
in the United States, and he strongly opposes
efforts to reform these tax rules. These tax breaks
cost the U.S. Treasury $7 billion each year and
make it significantly cheaper for American companies
to operate overseas than in this country. And they even pushed for more tax breaks for companies that export our jobs – to be paid for by raising taxes on companies that export our products and create American jobs. This was a failed plan for America that took us in the wrong direction.I have even provided a down loadable PDF file explaining how in 2004 Kerry and Edwards battled Bush over his plan to basically kill the middle class by rewarding companies that our source and to tax the companies that invest here in the United States.
An example was that on October 25th 2004 Bush signed into law $136 billion in corporate tax breaks, including a one-year reduction from 35 percent to 5.25 percent on foreign profits for U.S. multinationals. The provision was strongly backed by the technology industry despite criticisms that the break rewards corporations that outsource jobs overseas.During the Bush years Employer interviews revealed that most of the relocations
were domestic, involving the movement of work
within the same company, but work was moved
out of the country in more than a quarter of the cases.
This brings us up to the present where President Obama has a lot on his table.It is not as though this President doesn't want to do the work but rather it just seems like it would be so difficult to get anything accomplished when you have the republican party members in congress ---so named the party of no blocking just about every attempt by Obama to try and get somethings passed that would help the economy.But then you also have amid all this obstructionism a TV news station called Fox news which is actually just an extension of the republican party is telling lies in an attempt to give their own party an advantage in building up a political following.
I did save my most important observations of the last two administrations before Obama for last and for a good reason.I have a feeling that possibly none of you reading this have ever this way of looking at how our economy suddenly went into a recession.My observation was that a lot of reasoning and very difficult decision making went in overdrive before Clinton ever signed the Fair Housing Act which allowed the average person working in the United States to purchase a home with hardly any money down.Looking back at this period of growth one has to be reminded that even back then certain companies were already starting to outsource jobs to overseas countries.But here in the United States we actually had a surplus of money in the government and the unemployment was at a reasonable level.But what people fail to remember was that along with the gradual loss of the once good paying jobs to outsourcing,that these job losses were being replaced with mostly retail types of jobs like wall mart and fast food types of jobs.And lets be clear,these types of jobs are not usually the types of jobs unless their spouse has a really good job to go along with it of being able to purchase a home.So keep this information in your mind as you try and realize where I am going with this.When Clinton signed the fair housing act I believe he knew that unless an immediate boost to the economy in the way of good paying construction jobs that would come from the housing bill started up,that this good economy he was experiencing could come to a screeching halt.
There are two aspects to an economy. There's the support economy, which basically is all the jobs that support a region (however you define that region), such as restaurants, local businesses. They sell to the people in the region. Then there's the base economy, which is the business that brings money into a region from outside of it. The base economy is what gives people money to support the support economy.
Since Reagan, the US has been a debtor nation, meaning we import more goods than we export. That means our base economy is not bringing in enough money. The inevitable result of that, long term, is that our money becomes worth less and less compared to the rest of the world's money, and our jobs slowly evaporate.
The biggest cause of this problem is Reaganomics. Reagan believed--for outdated economic reasons--that if you give the wealthiest industries more money and give them an incentive to invest that money, they will spend it on creating more jobs. The problem with the theory is obvious and simple--industry doesn't make a product because they have money to make it, they make a product because there is a market to buy it. GM wasn't going to make more cars and put more people back to work if no one was buying their cars in the first place. Instead, they invested the money by buying up markets that already were making money--parts, tires, smaller car makers, etc. This created no new jobs, since they were just buying existing jobs. It only shifted those jobs from smaller ownership to larger ownership, and in the process reduced the number of employers.
So take the tax cuts that gave more money to the wealthy, giving them an unfair advantage in business competition against smaller businesses who did not get as much money back, and take the shrinking employer base from larger businesses buying smaller businesses (those who remember the 80s know that the big words then on Wall Street were merger and takeover), and you have middle and lower economic classes making less money, therefore starting fewer businesses, therefore not contributing to the base economy.
But the whole thing finally came to a head when Bush Signs the $700 Billion Financial Bailout Bill.
The period from the year 2000 to 2008 will go down as one of the worst in American history and George W Bush will undoubtedly go down as one of the if not the worst presidents of all time.During his administration Bush had to have been advised by his economic ad visors that the housing boom and the value of all homes were peaking out.But it was almost like he just looked the other way as more and more home equity loans were being lend ed to people that in a lot of cases were simply going to pay off their credit cards.Then these same people would just start to place more charges on these credit cards.But Bush just looked the other way instead of addressing this growing problem.We all know that Clinton signed the Fair Housing Bill but there were a lot of forces at work during the Bush years that if dealt with could have averted a total collapse of the economy.
The only answer right now is that we the democratic party have to get out in huge numbers in this upcoming midterm election November of 2010.The Republicans have a set of dirty little (actually not so little) secrets they don't what you to know -- and certainly don't want you to think about when you go to the polls in November.So spread these facts to everyone that you know so that we can get a huge boost in voter enthusiasm this fall.Because if we don't as a democratic base get out and vote in huge numbers here is what the republicans candidates have planed if they can get back into power.
President Obama more or less has called the republican party out for trying to block things like a small business jobs bill that will also contain a tax relief for the middle class.So he issued a warning to the republican party saying that the middle class will not be held hostage while the republican party is playing politics.So after months of bi-partisan blockage Obama put forth this bill that was actually written by both the republicans and the democrats.But for months the republicans had used different measures to even allow this bill to come up for a vote.
But this doesn't need to ever happen.All we have to to is once again come together and vote for another huge victory.Because even though it will take some time to get this country out of the mess we are in,together-yes we can.
Steve Rechel
bigbusinesshawk@gmail.com
