GOP where are you? (part one)

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Sep 282011

GOP where are you?

OK, everybody knows what’s going on now. We’re 14 trillion in debt, our credit rating has been downgraded; by the year 2055 the payments on the national debt will consume all government revenue and the dollar will soon become worthless and be replaced with  food stamps as the national currency.

So, the Republicans, who have been telling us they are our saviors put together some debates and a  Florida straw poll gave us some results, where are we now?

Well, the debates started out as expected with Mitt Romney and Rick Perry having a slug fest, but what we got instead was the spectacle of them knocking themselves out of the race. This happened because they exposed themselves as the establishment politicians the public is tired of and wants to get rid of.

This was already suspected of Mitt Romney because of his RomneyCare health care plan, but the debate showed beyond any doubt that he has the mindset of a person that thinks the government has to take care of the people. Despite the fact that current experience has shown that this leads to entitlement programs that are not affordable and is  leading America to financial disaster.

Rick Perry was a big disappointment when he showed himself as also having the mindset that the government has to take care of everything for the people as if they were children. This came out again with the fact that he ordered that 12 year old girls should be injected with medications as ordered by the government. This got even worse when it was disclosed that he approved a bill that gave illegal aliens free  tutuion money so that they can attend college in his state of Texas. The question was raised as to why American kids can’t get this free tuition money to which Mr. Perry had no effective answer. He only said “you gotta have a heart” , and so missing the point that the people are sick of politicians showing a big heart for foreigners and sticking the taxpayer with the bill.

So, its Rick Perry and Mitt Romney as just a couple of establishment politicians running for office when the people are basically looking for something else. This was proved with a Florida straw poll that showed Rick Perry and Mitt Romney tied with 15% and 14% of the vote; but Herman Cain got 37% of the vote and is now way ahead of the Rick an Mitt show.

The reason Herman Cain is now ahead in the race  is because he impressed  the audience when he told them about his fight with cancer; he is a cancer survivor and a brave man beyond question. When a man is told by a doctor that he has a 30% chance to live, this changes a person forever; they forget about the petty things in life and focus on what is important. And I hate to say this, but this makes for a better man. His financial plan of 999 meaning: 9% national sales tax, 9% flat business tax and 9% flat personal income tax sounded like a tax cut, (a popular thing to do when running for office) but if it is a tax cut, it was not explained how can he cut taxes when America is 14 Trillion dollars in debt? Then his advocating of the Social Security plan that Chile has of personal saving plans as a workable alternative to the American Social Security system, raises the question of the IRA accounts that Americans have and are ignoring, so can this be a workable plan? More answers are needed here from Mr. Cain who is now the front runner in the GOP race.

Then there is  Newt Gingrich, who only got 8% in the poll; but he was perhaps the only real political operator on the stage at last weeks debate. He looked like a big wise old Yoda throwing out sound bites. But the real question about him is, who is the real Newt Gingrich, why did all his campaign managers just quite one day recently? Was he too much of a maverick for them? He resigned his speakership of the House of Representatives and his Congressional seat in 1998 and was sanctioned for ethics violations. But he was speaker of the House during the Clinton presidency when he forced a government shutdown to force a compromise plan that lead to a balanced budget (ah, the good old days). So there remain a lot of questions about him. But,  maybe he has to be looked into a bit more. Is he the rebel America needs now?

Then there is Michele Bachmann. In many of her other appearances she showed herself to be a great public speaker, but in the debate she showed herself to be too measured in her statements. She also repeated statements she made in the last debate. She lacked the sharp come backs the other candidates had and so had the lowest vote in the poll of 2%. I was disappointed.

Rick Santorum and Jon Huntsman had that new kid on the block look that many voters do not like, perhaps more public exposure can help them.

This  leaves Ron Paul, you know, the small guy in the over size suit. A strict Constitutionalist who has many good ideas. He may be just the guy to cut the Washington D.C. over-bloated bureaucracy down to size. He spent just about his whole career demanding to audit the Federal Reserve, a questionable organization of private bankers that control the currency. If Ron Paul  becomes President, its a sure thing that he will balance the budget and terminate useless agencies and seriously cut down to size other agencies. But those suits he wears? He has to realize that he is running for the Presidency of the United States, ( the big enchilada) and you just can’t do this while swooshing around inside an oversize business suit. He has to dump that Wal-Mart rag and get some serious threads if he wants to get the Presidency. His vote total in the Florida straw poll was 10%, this puts him in fourth place, behind Herman Cain, Rick Perry and Mitt Romney.

Herman Cain has little political experience, no foreign experience; only business experience, so is he what America needs now? Should we  replace the clueless one in the White House with an “on the job training” administration?…..Let us pray.

Jose Lugo

American Jobs Act and Tariffs—(read more)

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Sep 152011

For weeks before President Obamas Jobs Speech  the Republicans said that it will be a waste of time, because it will be the same old stuff. I thought they were not being fair to the President;  it would have only been the right and respectful thing to do, to listen to what he had to say.  But it really turned out to be annoying when the Republicans were right.

As far as the media goes, the reactions were predictable. MSNBC said it was great, Fox News said it was the same old stuff that has already proven that it does not work. Maybe Fox News said this  because Obama said, “Pass This Bill Now” and he said this several times. He also said “everything in this bill will be paid for”. This sounds too much like the talk he used when promoting the Health Care bill last year. Can’t he think of any new way of promoting bills. 

In looking at the Presidents Jobs program, I also think it’s the same old proven failure of an idea to take money out of the economy or borrow it, to try to stimulate it. The President said that the needed $447 billion dollars  to finance the Jobs Act will come out of savings generated by other spending cuts in other areas. But this completely ignores the fact that Congress spent the whole summer arguing about spending cuts so that the debt ceiling can be raised; not a dime has been  found yet that can be cut because all the entitlement programs are needed so that Congressmen can keep “Their Jobs” in Congress. If they make their base supporters unhappy by not financing the programs they want, they will be out of a job. But to be honest about this, I don’t see anything wrong with sending them onto other employment or unemployment checks.

So, where can the $447 billion dollars come from to finance the Jobs Act. Nowhere; there is no money to be spent on this program. America is $14 trillion in debt, Americans are tired of this  high debt to foreign countries to fund  our day to day operations, the whole mess is not sustainable. If taxes are raised, this will only do more damage to the economy than any stimulus can heal.

One idea the President had was to renovate 35,000 schools. Well, giving kids a better education is certainly a good idea;  this will make for better citizens in the future, but not now, Americans need jobs now! School renovation will provide jobs for about a year, after that its back to the unemployment line. Permanent jobs, like factory jobs where a person can build a career for a life time are what is needed.

Another idea the President mentioned was to, “close loop holes”, but this only increases the cost of doing business in America and so will make America more expensive to do business in, and so cause more jobs to go to foreign countries. Some of these loop holes give business a tax write off if they donate to a charity and this is a good thing,  some of these loop holes give business a tax write off if they have extraordinary expenses one year and so helps them survive hard times and stay in business and provide jobs. Sure, closing loop holes sounds good from a “Social Justice” point of view, but it will not generate any new jobs.

The only loop hole that should be closed is the one that allows a tax write off for reducing the cost of moving a  business to another country, but this was not mentioned in the Presidents speech. It should be noted that General Electric (a main supporter of President Obama) used this tax write off when it sent some of its factories to China and so loosing jobs here in America.

Also not mentioned in the President’s speech was a fact that I have been writing about for a long time. That is the fact that the main impediment to job creation in America is the fact that people in China make about $2 dollars an hour, while Americans need at least $15 per hour if they are going to live any kind of decent life here in America. That is if they want a house, a car and the ability to send their kids to a decent college. With this wage difference, any job in America that isn’t securely nailed down is going to move to China. But  Congress and the President refuse to talk about this, I doubt if they even realize this.

So, what is going on here is the government continuing to use a policy of “Open Trade”, despite its obvious failure, and is now using a policy of “Damage Control” to cover-up the damage of lost jobs here in America. The stimulus package that cost us $878 billion and the now proposed American Jobs Act is just more damage control to maintain the “Open Trade” failure.

Congress is acting like an anarchist who sets fire to a house, then calls the fire department and just before they arrive  he shuts off  the fire hydrant in front of the house. Then he calls the firemen on the phone, telling them that he can help while getting his book of matches ready.

What America needs is fair trade, not the  open trade we now have. This situation where low wage countries can freely sell their goods here in America is destroying America. Tariffs are needed now so that Americans can compete on a level field, only then will there be jobs in America again because Americans can compete with any nation if fair rules are used in  international trade.

Other than that, the only other possibility of Americans having any kind of job is the elections in November in 2012, if we can last that long.

Jose Lugo