Sunday, February 5, 2012

Obama's [Goldman Sachs'] Shell Game

Actually, it should read US Government  (c) Google
Click here for related story [Washington Post]

We are pleased to learn that the Goldman Sachs Administration [excuse me, the Obama Administration] is revisiting FDR's Great Depression solution [which failed miserably] to fix our broken economy.

Leading this effort is Gene Sperling [Goldman Sachs paid him over $800,000 in 2008] who worked with Larry Summers [from Goldman Sachs] to repeal the Glass-Steagall Act which removed virtually all regulation from the financial industry [and we know how that worked out!].

Sperling created the American Jobs Act, budgeted at $447 Billion, which would have forced an increase in the US Debt Ceiling.  Obama proposed this bill [it's not an Act yet], last September, and in the usual Administration process, demanded it be passed "Without Delay" [you can find out the details after its passed].

Accept the carrot; get the bomb!
As with all Obama's legislative proposals, there are carrots which disguise the sticks.  

In this case, the carrots are tax benefits for the Middle Class and extended benefits for the unemployed --which the GOP proposed early on.

Barely noticeable are the sticks; the legislative openings for still more federal regulations, union organizing, and federal control over local governments.  Ultimately, this legislation will destroy business growth and increase unemployment to unprecedented levels.

To formulate this bill, Obama drew in a number of successful business leaders to ostensibly seek their input.  In reality, they became his unwitting PR smokescreen when he was challenged on the bill, so he could say
"I worked this proposal out with the input of the Business Community".  

[We know one of these guys [corporate CEO], and he and his family were "thrilled" that the President consulted him, not realizing he was simply being used as a pawn to facilitate passage of the bill.  Interestingly, the Board of Directors was not pleased with his Obama interaction and fired him.]

This is a mixed bag proposal, with components that appeal to the Middle Class and unemployed; it also puts in place more penalties and restrictions on business.  Let's look past the carrots which appeal to the GOP and all voters, and examine the dangerous parts of the bill:

1) "Creates additional 'regulations' against businesses which discriminate against the 'long-term unemployed'."
-- This would be an opening for Trial Lawyers and the Unions.  The lawyers would be empowered to generate thousands of lawsuits against companies which had not hired new employees; the suits would allege that that individuals were not hired because of their unemployment record.

A Windfall for Trial Lawyers
(c) AMC (Breaking Bad)
a)  How does a business defend itself against that type of charge?   And how much will a business have to spend to defend itself against this vague type of litigation?

b)  Unions would be enabled to force companies to hire union thugs and slugs whose work records make them unemployable simply because no business would want them fomenting dissent and labor strife within their companies.  They'll be the first to sue, backed by the unions and trial lawyers.

c)  Disputes in this venue would be ruled on by the National Labor Relations Board -- now packed with Obama's union appointees, with the assured result in rulings against businesses.

d)  Bottom Line:  This is a Union/Trial Lawyer godsend, guaranteed to shatter business recovery and create unemployment the likes of which this country has never seen.

2)  Spend $35 Billion to PROTECT THE JOBS of teachers, police officers, and firefighters.

a)  "Protect the Jobs" is a Union smokescreen --  for organizing public service employees.
We're here to organize your workforce

The federal government would spend $35 Billion to help unions organize, strike, and cripple local governments' ability to manage their employees.  Most of these people are already unionized, with catastrophic results [e.g., the DC government was forced to rehire hundreds of teachers  fired for cause; or Montgomery County, MD being at the mercy of a unionized police force that ignores the orders of its Police Chief and County Council].

Teachers' Unions vs Quality Education
(c) AvidEditor
b)  This is also a push to force local and state governments to hire more public employees in an austere period in which these governments are anxious to trim their budgets to keep from going bankrupt.  The federal funding would theoretically alleviate such funding strains, but in reality, to accept federal money is to accept  ALL the related federal regulations -- which carry criminal penalties for failure to obey.

c)  Ultimately, this Bill sponsors Union growth, expansion of local governments [with huge long-term costs for health and retirement benefits -- long after federal funding dries up], and eventually, much more federal control over state local government.

Every proposal in this Administration seems designed to increase the power of the federal government over state and local governments, to increase the funding and strength of unions, and to undercut private enterprise -- all resulting in increased unemployment.