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Obama’s “Financial Solutions”: What They Mean to Your Wallet

October 11, 2012 at 5:00 am / by
 

I’m not a financial wiz like, Jack Welch (former CEO of GE), nor am I as savvy as Indiana Governor Mitch Daniels, who successfully turned the horrific Indiana state deficit into a monumental surplus during Mr. Obama’s term in office. But, it seems to me all these government bailouts during the past few years have been putting next to nothing in our wallets and adding to the debt for generations to come. Every bailout is on the taxpayer’s dime, our debt to pay.

When President Obama was still new to the office he has held now for nearly four years, he decided to pursue a politically progressive approach to solving the mounting unemployment (when he took office the rate of unemployment was about 7.8%), business closures- massive layoffs, and the lack of jobs. As President, he would make the decisions for us and solve the country’s major problems. The economy was in trouble, and most Americans were feeling the pinch. Gas prices seemed to be on a roller coaster, food prices were up, and clothing costs were rising. The situation we faced in January 2009 is just as important now, as our present circumstances- because things have gotten worse not better. The bailouts that President Obama, Nancy Pelosi, Harry Reid and the Democratic Congress passed through into law cost the taxpayers plenty.

Mr. Obama, as the Presidential candidate of 2008, promised to cut unemployment by half during his Presidency.  It is in fact no better. During Mr. Obama’s Presidency unemployment rose from a low of 7.8% to a high of 10.1%, and stayed above 8% for more than 40 consecutive months.  A Presidential term is only 48 months. Job growth has not been his strong point. To keep pace with the rate at which our population grows, through immigration, birth rates and the like, there must be at least 150,000 jobs created each month. Analysts estimate sufficient job growth needs to be somewhere between 150,000 and 200,000 jobs created per month.  Job growth only can be claimed as successful if no jobs are lost. Millions of jobs have been lost during this presidency. Statistics show there are more than 23 million Americans out of work, and others who are not tracked have stopped looking for work. The estimated amount of Americans under-employed remains at 14.6%, meaning better jobs are not available for them. We all can’t work at a fast food restaurant and survive.

As of October 5th, 2012 Mr. Obama’s attempts at economic solutions can be credited with producing an average of 111, 000 jobs each month of his Presidency. The unemployment rate for August (the most recent data available) has been reported to be 7.8%. This number, mediocre at best, and may end up being adjusted upward, since these findings are not supported by the report on jobs created or jobs lost in August. Don’t expect the adjustment to come before the election. It seems convenient to the Obama campaign to manipulate the statistics to get votes. Consider the impact Mr. Obama’s decision-making has had on the economy, your wallet and National Debt.  When Mr. Obama took office in January 2009, the National Debt stood at approximately $10.6 Trillion (twelve zeros). Mr. Obama, as the Presidential candidate of 2008, promised to cut the National Debt in half during his Presidency. Instead, the National Debt (sometimes called the Deficit) has grown each of the last four years to a total of $16.5 Trillion dollars (twelve zeros). Tax cuts ($1 Trillion- amount of tax cuts), which were in passed into law under the Bush Administration, are about to expire on January 1, 2013. If the Obama Administration and Congress allow those tax cuts to expire financial analysts say the economy will be negatively impacted, calling the effect a “fiscal cliff”.

To be honest, heading toward a “fiscal cliff” worries me as much as you.  If the average family income dropped during the Obama Presidency by more than $4300 dollars, what then awaits us if the economy slides further downhill or remains sluggish? Financial analysts indicate when the Bush era tax cuts expire, small businesses, large businesses and individual investors- modest and large will be directly impacted. Then it seems to me the rest of us might feel the pinch. Just the other day I heard Vice President Biden say in a speech dripping with venom- he wanted the tax cuts to expire, so that money wouldn’t go to the wealthy. He didn’t tell the crowd the purpose of the tax cuts. Vice President Joe Biden was intentionally dividing the classes, creating division among Americans in a time when we need unity to pull ourselves out of this economic chaos. Here is the information you need to know.

When tax cuts expire, people end up paying more taxes. The expiring (Jan 1, 2013) Bush tax cuts have more to do with the average family than Obama/Biden are letting you know. The money in those tax cuts can increase and stimulate the base of the economy- its growth and job creation. Conversely, if investors are worried about taxes going up, the trend is to invest less. I will mention a few of the tax cuts here to show their impact on the economy, but they total approximately $1 Trillion (twelve zeros). Consider the effect on your life and that of your family. Set to expire and increase; small business tax, presently at 35% – would increase to as much as 42%.  If you work for or own a small business this could mean a drop in pay, or some layoffs. This could be a major consequence to many businesses and their employees. Of every dollar earned, 42 cents will go to the federal government in taxes. How will employees get paid?  Next to expire and increase; the capital gains tax, presently at 15%, it would increase to 24%. Of every dollar earned, 24 cents would go to the federal government that might have been reinvested in buying more stock. A person may have invested in a stock, such as your favorite coffee company, or a department store’s stock.  If any profit you realize from investing in your favorite coffee store will be taxed at a higher rate, you might choose not to invest in that stock. As a result, the company would lose out on hiring more people, or expanding their business. They may even need to lay-off workers or close stores, to deal with the lack of investment in their stock.  Jobs would be lost. Lastly, it has been mentioned that estate and dividend taxes will increase. You may already know about these tax cuts, this has been a simplified explanation, but you will need to do your own homework to see how the “fiscal cliff” may affect you life and plan for it. President Obama and Vice President Biden intend to “let the chips fall where they may”. If a negative impact happens, they’ll just blame the “haves”. They won’t take responsibility themselves.

Analysts say that when these tax cuts expire the economy will not grow. Even with the threat of this happening the economy continues to be sluggish, the stock market rolls and pitches as the tax cut deadline looms. Those same financial analysts agree, America will lose more jobs to our competitors- like; China, India, Germany and France. They are in competition for business from corporations to move jobs to their countries. More companies may need to move out of the country, thanks to the plan of Barrack Obama and Joe Biden. Big business, small business, high-income earners, and middle income Americans- we will all be in the boiling water together.

According to an online article by the N.Y Times, March 15, 2012- “Economic Stimulus-Jobs Bills”, there have been three bailout bills signed, and a set of Executive Orders by Mr. Obama. President Bush made one bailout early in 2008 and President Obama made the rest.  These attempts at solutions were still missing the key components to reducing the National Deficit and stimulating the economy. If any economic stimulus bill is passed into legislation without a viable source of funding, the costs essentially get added to our National Debt, now at more than $16.5 Trillion (twelve zeros).  It seems crucial to solve our economic crisis; tax rate changes- and closing loopholes, tax cuts for the Americans, combined with spending cuts- tightening the belt of Washington lawmakers at the federal level, make for a more complete solution. Politicians like President Obama, seek to make decisions for us-replacing their judgment for our own. These decisions affect our everyday lives, whether they pass new laws, add regulations or develop new programs. We have suffered as a result of Mr. Obama’s bailouts. In a recent issue on the cover of Newsweek, the journalist writing the cover story about former President Clinton speaking at the recent Democratic Convention, indicated the one issue that seems to bother President Clinton most about Obama- President Obama does not accept counsel or seek it. I wonder why not, Mr. Clinton was considered successful during his Presidency, and Mr. Obama has not been. The article went on to say that Clinton was a centrist politician- seeking to unite, build consensus and even compromise, called “Clintonism.” The article later indicates that “Clintonism” has been replaced by Mr. Obama’s tactic of  “Class Warfare” [my emphasis].  President Obama came into the Presidency with little real world experience in working with people of opposing viewpoints to a positive outcome. He has continued to not be able to bring legislators together, and the economy shows it.  Americans are suffering. With less than one month to the Presidential election, Mr. Obama says he has another plan, and needs four more years. He says he can fix things. Really. If that is the case, don’t you think he would have already pushed for it to become legislation during his term in office? No, his plan includes a financial assault on all Americans. That won’t stimulate the economy; it will just be “Class Warfare.” Send a message to Mr. Obama. Mitt Romney has our backs

 
 
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  • http://www.facebook.com/annmariemurrell Ann-Marie Murrell

    Such a good article Joan & SO important to know–this will definitely come up in the next debate, good to be prepared.

 
 
 
 

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