Category Archives: Economy

The Big Lie – GM Bailout And The Non-existant 1.5 Million Jobs

For a political junky such as myself, the conventions mark the end of “spring training” for me.  You watch the teams, the trades, the performance before partisan home teams – all to get ready for the real campaign season.  One of the stand out performances for the Democrats at their convention was the speech given by Bill Clinton.  His myth has been written so large that, combined with his charismatic delivery, the speech has taken some of the wind from the terrific convention held by the Republicans in Tampa.

There are a couple of things wrong with this situation though.  First, Bill Clinton isn’t running for President.  Second, the record of statements and actions of the former President are totally at odds with President Obama’s not-so-lite style of socialism.  And finally, Slick Willie can’t can only lie about the so-called achievements of the current administration – those that they will even talk about, that is.

Here is a break down from Ace of Spades HQ rebutting some of Clinton’s bigger whoppers:

  • “Obama didn’t really take $716 billion from Medicare.  Somehow Clinton made this sound as if Obama put more money into Medicare.  He didn’t.  He cut it.  He did not “use the money to close the donut hole” as Clinton claimed (or, rather, only a part of it is used for that; the rest is for the new clients of ObamaCare).”
  • “Clinton also claimed, baffling, that if Romney puts the $716 billion back into Medicare, that makes the system go broke more quickly.  But, the $716 billion being used to “shore up Medicare” has always been a lie. You cannot spend the same dollar twice.”
  • “Clinton fudged facts to suggest that Obama’s Miracle Economy was just around the corner. It was no accident that Clinton fudged dates to claim that people “didn’t feel” the recovery in 94-95, but then suddenly felt it in 1996. He is trying to convince people who Obama’s own economic miracle is just six or nine short months away. In fact, Clinton inherited a growing economy — the Bush recession ended the quarter before the election — and the economy grew far more strongly in Clinton’s first three years than it has in Obama’s. Something like 4% vs. 2%.”

But, the biggest lie of them all was the 1.5 million jobs saved by the nationalization bailing out of General Motors.  National Review Online delivers a scathing, in-depth analysis.

“Admirers of the GM bailout should bear in mind that it was the Bush administration that first decided to intervene at the firm, offering a bridge loan on the condition that it draw up a deeply revised business plan. President Obama’s unique contribution was effectively to nationalize the company, seeing to it that the federal government violated normal bankruptcy processes and legal precedent to protect the defective element at the heart of GM’s troubles: the financial interests of the UAW. It did this by strong-arming GM’s bondholders into taking haircuts in order to sweeten the pot for the UAW… Bill Clinton bizarrely tried to claim that the bailout has been responsible for the addition of 250,000 jobs to the automobile industry since the nadir of the financial crisis. Auto manufacturers and dealerships have indeed added about 236,000 jobs since then, but almost none are at GM, which has added only about 4,500 workers, a number not even close to offsetting the 63,000 workers that its dealerships had to let go when the terms of the bailout unilaterally shut them down.”

The Romney campaign needs to get out in front of this freight train of falsehoods.  They need to rebut point by point the false allegations and false accomplishments of the Obama administration.  Bill Clinton is a former President and due all the respect a holder of that office deserves.  However, no one gets to vote “present” when it come to the truth.

And if Obama’s apologists want to say that none of this could be forseen, check out Death of a Thousand Car Dealerships.  I wrote it in May of 2009.


Paul Ryan’s Line Of The Night

“College graduates should not have to live out their 20s in their childhood bedrooms, staring up at fading Obama posters and wondering when they can move out and get going with life.”

That’s so good, someone should do a commercial about it.  Oh, wait…

And if you didn’t watch the speech, you should.

Obama’s War On Seniors

Republican Vice Presidential nominee Paul Ryan made a great point last night.  The biggest threat to Medicare is Obamacare.

The President and his defenders like to say that they didn’t take $716 Billion from Medicare.  They say that it is still there.  But, you and I both know that if you are using that $716 billion for Obamacare then it isn’t there for our seniors.  You can’t use the same (huge) pile of money to fund both programs.  If Medicare costs will be reduced through improvements and cost savings, who gets paid less?  The doctors and hospitals that are currently treating our seniors are already paid way below market for their services.  More cuts mean fewer doctors will take Medicare patients.  Those that do will have to make up in volume what they lose in per patient reimbursement.  Less time with your physician and longer waits for visits will play nicely with the government overseers that get to determine what kind of treatments you will be allowed to receive.

But, Medicare is not the only place that the administration is covertly hurting our seniors.  look at this economy.  Higher gas and food prices hit those on fixed incomes especially hard.  To make ends meet, more seniors are trying to stay in the workforce longer or find work after “retirement”.  The current high unemployment is forcing generations to move back in together just to keep afloat, further depressing housing values that seniors thought formed the backbone of their retirement portfolio.  Add to this the abysmally low-interest rates that seniors are receiving on their savings and you have a real disaster on your hands.

Glenn Reynolds (the Instapundit) has a great analysis of these and other economic problems created or exacerbated by this President.

Our seniors are suffering and face increasing hardship.  Yet, the media choose to ignore the crisis at hand.  I guess we can tell who they are rooting for.

I Want To Gow Up And Be A Crony Capitalist

From the mouths of babes we get a perfect understanding of what has infected not just our economy but our political system as well.

Government Didn’t Build It

The most revealing thing Obama has said during the 2012 campaign continues to bite him on the butt… and HARD.  The reaction of business owners to his “you didn’t build that” comment continues with all of the creativity and intensity and energy that are the hallmarks of the American entrepreneurial spirit.

From roadside signs to refusing the use of your business as a campaign photo-op for the Vice President, business owners are expressing their long pent-up frustration at a government that has “erected a multitude of New Offices, and sent hither swarms of Officers to harass our people, and eat out their substance.”  However, the owner of Davenport, Iowa Village Corner Deli did agree to cater an event during President Obama’s recent visit.  He just made sure that he wore a Mitt Romney campaign shirt while doing it.

The outrage over the President’s comments has taken on a life of its own.  Weeks later the controversy has only sharpened as the true import of what was said is examined.  In one of the notoriously long comment threads over at the Ace Of Spades HQ, a poster summarized his feelings of anger, frustration, and betrayal that Obama’s statements have brought to the surface – and the forefront of the campaign.

129 As a small business owner all I can say is that I think the current sentiment in the small business community is that we didn’t sign up for this shit. Y’all can vote for whatever the hell you want but we are not going to be a part of it.

I have seen more owners get out of the business or retire in the past couple of years than ever before and with the ACA on the horizon the jobs these businesses produced will not be replaced. The economics no longer work. This is why unemployment is always so high in socialist countries. What you have to go through to have employees is just brutal.

But here’s the thing about what Obama said — he has it exactly backwards. The government didn’t build any of that shit he is talking about — we built it. We are the ones who paid for it. Not only did we build our businesses we built the schools and the roads and everything else he thinks was generated out of thin air. If you want to get technical about it the businesses and taxpayers that came along before we did built it all and now we are building what comes next.

And not only that, but we did it with the albatross of a predatory, corrupt and overbearing government hanging around our necks at every juncture.

And now we have had enough…

Go read the whole thing here.

No advertising agency or focus group could have developed a campaign with as much impact as Obama’s own un-telepromptered disdain for free market capitalism.  Statements like these demonstrate daily to the American people why the economy is where it is.  Government did build this…


More posts on Obama’s “you didn’t build that” fiasco:

Do Democrats Really Want To Campaign On Their Medicare Record?

The Democrats seem to think that they can win by making Medicare reform a key issue in the upcoming election.  They hope to scare seniors in crucial battleground states like Florida and Ohio – telling them that Paul Ryan’s budget would “end Medicare as we know it”.

Well, Obamacare HAS ended medicare as we know it.  The Romney/Ryan campaign points out that The Affordable Care Act stole $716 billion out of Medicare; cutting benefits for seniors, giving us bureaucrat run rationing boards, and bankrupting the trust fund.  If the Democrats insist on attacking Ryan and Romney over their plans, then Democrats will have to defend their own as well.

National Review lays out rather succinctly why this strategy may be a losing one for the Obama campaign.

Their defenses so far fall into roughly three categories: Ryan did it too, the Obamacare Medicare cuts aren’t very serious, and finally what can only be called frantic distractions. Even as pure demagoguery (let alone as efforts at actual substantive arguments) all three are exceptionally weak defenses, and suggest the Democrats could be in serious trouble. Let’s examine each one.

The “Ryan did it too” defense is perhaps the most amusing of the three, as it succeeds in being simultaneously untrue, irrelevant, and an admission of the basic charge against the Democrats. Even as they call Paul Ryan a cruel and merciless budget cutter who cares not for the weather service and would gladly see children exposed to E. coli, the Democrats justify their taking $710 billion out of Medicare and spending it on Obamacare over the next decade by pointing out that Paul Ryan didn’t put that money back into Medicare in his budget. So if he had, would that have made their cuts unjustifiable? Well it so happens that he did. By repealing all of Obamacare’s spending, the Republican budget does not spend the money Obamacare took out of Medicare and thus those funds are used to extend the Medicare trust fund. And this point is hardly hidden in the Ryan budget. The budget document spells it out in its spending tables and also explains it in its narrative section, noting on page 54 that:

This budget ends the raid on the Medicare trust fund that began with passage of the new health care law last year. It ensures that any potential savings in current law would go to shore up Medicare, not to pay for new entitlements. In addition to repealing the health care law’s new rationing board and its unfunded long-term care entitlement, this budget stabilizes plan choices for current seniors

The Republicans so far are giving as good as they get; staying on offense where Medicare is concerned.  Check out the new video:


Some Things Aren’t Disposable

We live in a disposable society today.  Cars and clothes and gadgets are all tossed away when they lose their lustre, stylishness, or geek chic.  I grew up wearing pants my mother had hemmed and then later patched as I wore them out.  My brother wore my hand-me-downs and played with the toys of mine that survived.  Our family drove used cars and worked at keeping them running.  Our first computers were built from kits bought at Heathkit.  They were later scavenged to build the next generation of home PC.

This spirit of thrift… of making a dollar stretch as far as it could… came down from previous generations that had weathered depressions, joblessness, illness, and family tragedy.  They had learned to save, buy well, recycle, and to repair what was broken.  Debt was at best an ugly necessity and worst an all-consuming sin.  Where is that spirit now?

Perhaps we will see its resurrection after the trials of the current economic disaster.  Today’s college graduates and boomerang kids are finding out first hand the results of poor planning, bad decisions, and frivolous lifestyles.  A recent survey shows that to deal with crushing student debt and Obama’s 8.2% unemployment rate, many in America’s recession generation are looking to rent their lifestyle.  Renting cars, houses, furniture, and even clothes is a growing trend.  With median starting salaries down $3,000 from 2007 levels and gas prices double what they were at Obama’s inauguration, those lucky enough to find work are struggling to get by on much less.

It is a sad situation when one comes to believe that we will one day look back and thank the Democrats and President Obama for their ruinous economic policies.  An entire generation will have re-learned through this needless suffering the lessons of prior planning, delayed gratification, and thrift.  Reduce, reuse, and repair could be the mantra for America’s recession generation.

Do I wish for too much when I hope that our society can take these lessons and apply them to their lives as well as their wallets?

Forget The Bridge To Nowhere: How About A Bridge To Anywhere

Where is the bridge to anywhere?

A week ago Obama’s uttered his disastrous statement to small business owners that you “didn’t get there on your own” .  Nice to hear again what you really feel about entrepreneurship and capitalism.  The President went on to tell us that “When we invested in the Hoover Dam or the Golden Gate Bridge, or the Internet, sending a man to the moon – all those things benefited everybody. And so that’s the vision that I want to carry forward.”

Mark Steyn takes him to task on what President Obama has actually built.  With trillions in new debt, there should be some great signature public work that the Spender-in-Chief could point to.  Where is it?

“the Golden Gate cost at the time $35 million – or about $530 million today. So, for the cost of Obama’s 2009 stimulus bill alone, we could have had 1,567 Golden Gate Bridges…”

And what of the President’s talk of the great Hoover Dam?  He seems a little confused policy-wise when you look back only a month to comments from his own Deputy Assistant Secretary of the Interior. Deanna Archuleta said in a speech to Democratic environmentalists in Nevada that “you will never see another federal dam.”

Steyn succinctly points out in his article that “Instead of roads and bridges, Obama-sized government funds stasis and sclerosis: The Hoover Dam of regulatory obstruction, the Golden Gateway to dependency.”  Take a moment and read the whole thing.

(Hat tip to the Ace of Spades HQ.

So, We Didn’t Build It? (Video)

After President Obama’s asinine statement that “…look, if you’ve been successful, you didn’t get there on your own. You didn’t get there on your own.”, the backlash has been palpable.  Entrepreneurs, business people, inventors, and every day folks that have a basic grasp of free market economics have been pushing back.

The media says that the comments were taken out of context.  Well, I argue that his comments were the un-telepromptered truth.  Read the text here for context.

Governor Romney has it right when he says “President Obama attacks success, and therefore under Obama we have less success.”  To push that point home, the campaign has released a new video.

Let’s Check Obama’s credentials.

Here’s what Obama is trying to say.

And here is what a real leader says about American progress and success.

Obamanomics in One Illustration

If you’ve ever needed to define kleptocracy in one brief illustration, this is it.

Obamanomics 101.