500,000 New Unemployment Claims – CNBC Once Again Claims: “Unexpected”!

CNBC is reporting that new jobless claims rose to a 9 month high as of August 14th to 500,000 new claims. The word, “unexpected” was, once again, used in conjunction with additional jobless claims. With the economy in “stimulus” mode, the nation has lost more than it has gained going into 2010 mid-terms. The only thing unexpected about these claims is the continual use of the term in conjunction with monthly job losses under the Obama administration's watch.

In addition, the number of individuals receiving “emergency benefits” (extended) jumped to 4.75 million as of July 31st. Good thing they passed that "Jobs Bill".

Eventually, the Progressive mantra “tax the wealthy”, (i.e. corporations), will drum the nation into deeper penury if someone, somewhere doesn’t realize that the current taxing problem needs a bold approach – repealing every piece of legislation that has added a nickel to the corporate and individual income taxes, and instituting attractive packages for employers to get back on the hiring wagon, including busting a few unions. How many more jobs must be lost before the powers that be wake up and smell the coffee?

Obama Job’s Bill Includes Huge Cuts to Medicare and Increase to Oil Fees in Attempt to Extend Unemployment Benefits through November.

Greek Riots in Greece - With continued spending this could be Washington. photo zimbio

Apparently, in a measure to reduce the jobs bill by $50 Billionwhich includes cuts to Medicare reimbursement to physicians, and increase in oil fees, and a reduction of one month in unemployment benefit extensions. The bill, with an original price tag of $190 billion, cut one vital program and increased a tax that will impact the price of oil, in order to attract enough votes from so called “moderates” in order to push another huge spending bill through Congress before the June recess.

The cut in Medicare payments to physicians is most worrisome to seniors, and the physicians who are at the receiving end of yet another stimulus. Although Congresshad promised there would be no cuts to Medicare, and the President, according to the AP, sent out “a glossy brochure to reassure seniors the health care program is on solid ground”, the jobs bill, with heavy pressure from unions, contains a reduction of $21.8 billion in Medicare reimbursements, from the $65 billion commitment made to physicians and seniors. In addition the funds are only guaranteed for a portion of the original time dictated by the administration (Politico).

Democrats are now referring to this cut as a “freeze”.

Most worrisome is the input from Gerald McEntee, president of the American Federation of State, County and Municipal Employees, who apparently feels that the growing deficit is of less import than extending unemployment benefits. (Politico) McEntee, a regular contributor to the Huffington Post, opined in a recent piece that there is an assault on Public Employees. The clueless Union Talking head has apparently missed the New York Times article, which discussed the gap in pensions for public employees versus those in the private sector (and lack of transparency): “about 3,700 retired public workers in New York are now getting pensions of more than $100,000 per year, exempt from state and local taxes”.

Meanwhile, Europe scrambles to avoid financial collapse (see Greece) in France, the government is raising the retirement age to 60 in order to stave off huge deficits. It may be recalled that Greece, with outrageous entitlement programs that it could no longer sustain, was recently bailed out by the U.S. government.

One should ask those Union leaders and the clueless horde that currently runs our government, who might bail out the U.S. should our entitlement programs (already unsustainable in most states) are summarily cut? New Jersey Governor, Chris Christy is battling to cut the state deficit, and warns that New Jersey is one step away from being “Greece”. He is currently ignoring the state union employees who had rallied on the Statehouse steps against the budget cuts. Chris Christie “gets it”.

While the Administration and the Democrat Controlled Congress are about to cut essential services to the nations senior, place a tax on oil that will impact both seniors and those on fixed incomes nationwide, in order to pacify the unions, one has to ask when the proverbial “light bulb” will finally appear over the heads of the committed Progressives who are so pro-union, they cannot see the forest through the trees. There will be no bailout of the U.S. period. We can, as a nation, only sustain so much debt before serious cuts must be made, and taxes reduced on those very same businesses so vilified by the union talking heads, that create jobs. John F. Kennedy got it, Ronald Reagan got it, even George W. Bush got it – for some reason, Progressives never get it, instead, they cry foul of the corporations whose very existence created jobs for the likes of union bosses.

The big what if? Certain economists believe that the Chinese Economy is not on solid ground, and the real estate market there is experiencing some difficulty, in addition they face rising unemployment. Given the fact that the China holds the biggest percentage of U.S. Debt (allowing the Democrats to continue to spend like no tomorrow), should that country’s economic system experience a hiccup – they would no longer be in a position to bail us out. Europe is in a shambles – there is literally no place to turn.

What needs to be done now is not minor surgery to yet another tax and spend bill, rather serious cuts to every segment of the Federal government and a reduction in entitlement programs, coupled with across the board tax cuts. This is not an overnight fix, it takes time to bring back those businesses Mr. McEntee accuses of leaving the U.S. jobless in pursuit of non-union employees in other nations that offer real tax breaks. One other remedy that should be on the table – disband the unions that protect individuals in jobs where there is absolutely no risk to life and limb. Any left standing should be federally mandated to ensure that dues are used only for retirement programs and plans for its members. (Not hefty salaries and donations to political parties, as is now the case, on the back s of those same union members McEntee is allegedly tyring to protect) Salaries to so-called union officials and union management should be capped, period. Someone has to have the courage to make major change to the current program, which is highly unlikely given the current administration and like-minded Congress. The only remedy at this point is the ballot box. November cannot come soon enough.

Obama to Move to the Middle – Class – State of the Union to Include “Tax Credits” – Congress to Work on Job Creation! Who’s Buying This?

Barak and Jimmy - image conservative report.wordpress

Obama’s State of the Union Address which will be telecast Wednesday night, January, 27th, will include a slew of “tax credits” aimed at the Middle Class. The President now believes that the “Middle Class” is under assault, however, his tax credits, will be offset by the Bush tax cuts due to expire this year. What is lost on those who blindly follow, yet refuse to read, is that the Bush Tax Cuts included the child tax credit, eliminated the marriage penalty and gave across the board relief in the form of a tax reduction. This will now be offset by the following proposals by the Obama administration: begin with new mandates on employers to “encourage” retirement plans – this will encourage “savings”. (This will result in additional paperwork, an expense that the actual private sector employers left, can hardly afford.).

Obama also plans to almost double the tax credit that families receive for the costs of child care. One has to ask what happens to the millions of families that cannot afford “child care” per se – those that use the “latch-key” method, let alone those who have older teens who are not about to go into a “child care” setting.
Here’s one for the ever growing budget: adding more to the federal fund that helps working parents pay for child care – most often those that need assistance to pay for child care under federal guidelines are not the middle class.

Adding to the federal deficit through Job Creation - although the President and his like-minded Congress and Senate agree that American’s need job creation, they apparently have no clue as to how to achieve job creation in the private sector. This is evidenced by a new proposal being pushed through Congressto the tune of $80 billion dollars in the form of a “Job Creation” package. Job creation defined by the administration is to save jobs in the public sector and then designate the balance of the monies (being printed out of the Congressional basement) to “shovel-ready” projects. (See all the infrastructure work and thousands of private sector constructions jobs created by Stimulus 1?). Perhaps it would do well for the administration to take a step back and review a bit of history.

Although not found in history books, per se (as they are mainly written by Progressives, a group with an agenda, less a clue), there are archives of newspaper clippings and articles and books written on subjects (Google Books and Amazon.com) such as: Jimmy Carter's failed Job Stimulus program. A program which worked so poorly that between unemployment and inflation (which resulted when the U.S. dollar was worth less than the Canadian Dollar and the Cost of Oil rose through the roof – one should refer to recent articles where: the Canadian Dollar is strong compared to the U.S. Dollar and the price per barrel of oil continues to rise)the mix of unemployment and inflation caused a “misery index”. That index name leaves no room for speculation.

Recently, Obama gave an interview to Diane Sawyer of ABC in which he noted he’d rather be a really good one-term President as opposed to a mediocre two-term president. One, our President is considered a progressive (political ideology that is based mainly on socialism) and b); there are concerns that that he does not have a clue. Obama was being somewhat predictive in his interview with Ms. Sawyer, yes; he will be a one-term President – more than likely. The question of a “really good” one-term president, now that’s a different story. Then again, Jimmy Carter believes he was a “really good” one-term president too, and there are textbooks that are there to back him up.

Senator Elect Scott Brown (the Pride of the Bay State), has a clue. In one of his initial campaign ads, a video of John F. Kennedy discussing tax cuts (not mentioned in text books), was morphed into Scott Brown talking about – tax cuts! It was not designed to compare Brown to Kennedy as so many who cannot read believed. Clearly stated in the ad was that there were difference between the men, but that one policy that worked, regardless of political party or ideology, was: Tax Cuts

Apparently Brown did his research, while, some holding higher offices have not. In order to give true relief to the American public, including those from the bottom to those on the top, we need less “stimulus” and much less “debt”, in order to function and bring jobs (private sector) back on track. Which, it is obvious from the preview of the President’s State of the Union, that’s not going to happen.

As the second year of the one-term Presidency of Obama begins, let us hope that someone, somewhere gives that man several teleprompters loaded with articles from the 1970’s that explain, in detail, where he may be going wrong. Perhaps he’ll get it in time to stop the bleeding of the Middle Class, those on fixed incomes, and those who are seeking employment in the private sector.

How bad is it?

Sam’s Club, (owned by Wal-Mart) is being forced to layoff 11,000 employees. This is not high end luxury retail we’re talking about, this is deep discount. Apparently, the fact that rising costs due to rising taxes on every business that has anything to do with production, from food to clothing, has been lost on the administration. Our nation is at the point where, should this pattern continue, no matter what spin the political powers that be put on the misery of the people, no matter how many times Bush and Cheney are mentioned by a Progressive Democrat who is hell-bent on not getting elected (See Martha Coakley), the fact remains – that the “Buck Stops Here”, and it has. Republican or Democrats in both houses need to jump on the Scott Brown train and take a look at what can help the People, party politics aside, or they will soon be joining the ranks of the ever increasing unemployed.