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It’s been a long time since we’ve seen gross domestic product (GDP) grow at such a robust rate. Not since the third quarter of 2003 has the United States experienced this type of growth. However, that’s all for the good news. Once this number is broken down, it reveals glaring weaknesses.
First off, about two-thirds of the 5.7 percent uptick is attributed to inventory replenishment. This marks an end to businesses’ panicked inventory liquidation and nothing more. Eventually, restocks are in order regardless of market conditions. Considering the mass liquation that has taken place, this number should have been much higher. Furthermore, private inventory investment does not address unemployment.
735,000 jobs were lost in the last six months of 2009. (1) The economy is continuing to shed jobs, as year-over-year GDP growth has remained flat. (2) One key indicator of a strengthening economy is real nonresidential fixed investment, as it indicates the level of confidence business has in the economy. The 2.9 percent increase seen in the fourth quarter does not come close to offsetting the 14.6 percent decline from 2008. (3) Upon digging deeper into the employment numbers, wages and benefits rose a meek 1.5 percent in 2009 – the smallest change since the series began in 1979. (4)
Some will tout the 18.1 percent increase in U.S. exports. (2) However, it is naïve to think the United States can play the same game as China. The pain felt and problems associated with a weak U.S. dollar are far greater than any reduction in the trade deficit. A weaker dollar leads to inflation and makes the prices of imports more expensive. Needless to say, there will be a lot of consumer frustration at the gas pump this summer.
After going inside the numbers, more evidence illustrates that none of the “growth” is real. Last quarter, positive GDP rode the coattails of government injected stimulus. This quarter, inevitable inventory replenishment along with growth being derived from government gimmicks is supposed to excite people. The key here is that sectors that are not benefiting from government stimulus are severely lagging such as equipment and software – down about 16 percent from 2008. (3)
History has proven that the government cannot prop up the economy. During the Great Depression, GDP grew at an average rate of 9 percent per year between 1933 and 1937. However, unemployment remained extremely high, and then the economy suffered another severe downturn in 1937 and 1938. The measures being taken today are not only planting the seeds for inflation, but are creating the conditions for the same kind of unstable environment seen during the Great Depression and the 1970’s.
President Obama’s $3.8 trillion budget will set a record breaking $1.56 trillion deficit for 2010. It is clear that Obama remains steadfast in pursuing anti-growth policies. Taxes on those who produce and provide jobs; burdensome regulation that serves as barrier to entry as well as escalating compliance costs for small businesses; increasing the government’s already huge presence in healthcare; and cap and trade which will increase taxes along with skyrocketing utility costs will ensure the current economic environment for years to come.
How long are people going to fall for the “if we didn’t act, things would be much worse” bit? How well is government-funded “growth” working? How many will be happy with positive first quarter 2010 GDP growth when it is very possible unemployment will continue to rise? Going inside the numbers reveals an ugly truth.
(2) http://www.bea.gov/newsreleases/national/gdp/2010/gdp4q09_adv.htm
(3) http://www.richmondfed.org/research/national_economy/national_economic_indicators/pdf/all_charts.pdf
When in doubt, it is always safe to pander to the masses. President Obama’s approval ratings have taken a severe hit; but there is no better way to try and change direction than to have sharp words for Wall Street bankers and to portray himself as siding with the little guy. However, there are many facts the President left out of his little P.R. stunt.
During his interview on 60 Minutes Sunday evening, he said “I didn’t run for office to be helping out a bunch of fat cat bankers on Wall Street.” Is that so Mr. President? If one has paid any attention to President Obama’s first 11 months in office, they would be very well aware of the fact that he has not only continued, but has expanded the Bush/Paulson bailout plan. He has also recently considered bailouts for the ailing newspaper industry.
The President may claim that he has no intention of helping Wall Street fat cats, but one is left to wonder why these fat cats were so generous in their donations to his presidential campaign. (1) Goldman Sachs was President Obama’s second largest donor contributing nearly $1 million to his campaign. The top ten list included Citigroup, JP Morgan Chase & Company, Google, Microsoft, Morgan Stanley and General Electric.
These fat cats have invested heavily in this administration since they not only get rewarded for their irresponsibility; they also stand to profit immensely off of their proposed policies such as Cap and Trade. Cap and Trade would do absolutely nothing to address climate change concerns, but it would give the government tremendous power while companies like Goldman Sachs would profit off of the commissions. Goldman Sachs currently owns a 10 percent stake in the Chicago Climate Exchange. All of this would be at the CONSUMER’S expense. President Obama can spew rhetoric all day long that talks about heavy taxation and regulation, but the truth is that these taxes and regulatory costs are passed onto the consumer. It’s quite comical to think otherwise.
General Electric (GE) also made the list and is currently being repaid with the receipt of lucrative government contracts. The company also started a joint venture called Greenhouse Gas Services which will invest and manage the trading of greenhouse gas credits. During the fourth quarter of 2008, the company’s stock declined 30 percent. However, that did not stop the company from spending $4.26 million on lobbying. (2)
It’s interesting how the left widely publicized former Vice President Dick Cheney’s connection to Halliburton Corporation, yet they turn a deaf ear to amount of influence General Electric has had on public policy not only through lobbying, but through the promotion of its agenda via its ownership of NBC Universal along with Jeffery Immelt’s special connection to President Obama. Mr. Immelt sits on the President’s Economic Recovery Advisory Board. Mr. Immelt has all but run GE into the ground, yet he is being consulted for economic advice? These types of connections make the former Vice President’s look like small potatoes.
President Obama claims he will put pressure on banks to open up their purse strings and loan money to small businesses. There is the saying that “ignorance is bliss,” but this is not the case. Obama denies what really caused the crash of 2008 – the Federal Reserve’s policy of cheap money which allowed for the financing of reckless lending practices backed and regulated by the government. He’s never spoken seriously or has expressed real concern for the weakness of the dollar, the amount of debt that burdens the nation and a dangerously large federal deficit – the largest in history. Instead, he continues and expands on the Bush administration’s (the same administration he loves to blame) absurd monetary policy while encouraging banks to stray from prudent lending practice all in the name of saving the economy.
When all of the facts are examined, one can conclude just how much Obama cares about “the little guy.” He shows his concern by condoning a monetary policy that weakens the purchasing power and net worth of every American. He supports bailouts of failing companies (many that are run by those fat cats he says he doesn’t wish to help) that prevent opportunity. Propping up failure comes at the expense of growth and innovation. He does not address any of the burdensome regulation and mandates that prevent small businesses from expanding and hiring people. Larger corporations enjoy economies of scale, which allows them to spread out and pass the regulatory cost onto the consumer; but the small business owner cannot. It’s no coincidence that there has been a surge in the hiring of temporary workers over the past several months since these mandates do not apply to temporary workers. In addition, temporary workers can be let go much easier than employees, which is a wise move for employers in precarious economic times. All that the President offers is a promise that banks will give small business the option of assuming more debt – just what it needs!
The little guy doesn’t need the Obama Administration’s statist agenda and the enactment of the same failed policies that have prolonged and made recessions worse in the past. Such polices create a very volatile economic atmosphere – not the kind that puts people back to work and ensures prosperity for all.
(1) http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638
BY: MIKE PORTER
This Monday November 9, 2009 represents the twenty year anniversary of the first time the Berlin Wall was opened in Germany. On that glorious day, it marked a significant step in the destruction of the Soviet Union and the end to the long and brutal cold war. America emerged as the lone super power in the world and surged ahead proving to the world that democracy and individual freedom had triumphed over tyranny and socialism. It was a wonderful time to be an American and an even more wonderful time to be alive. The heavy hand of government and the terrors of the Soviet Union would influence the world for the last time.
Germany became divided at the end of World War II, because the Allies could not agree as to which government should be installed after the fall of the third Reich. After much deliberation, it was decided that East Germany would belong to the Soviets and West Germany would belong to the American, British, and the French. After countless people had fled from East to West the Soviets had trouble controlling the border. Many were put in prisons and others were shot dead on the spot by Soviet border police. In 1961 it was decided by the Soviets that a more cost effective solution was necessary to stop frantic East German citizens from seeking freedom on the other side. Shooting some and putting others in prisons was very costly and thus the wall was built by the Soviets to help police the border between East and West Germany. The wall stood for many years until it was opened for the first time in 1989, and a united Germany was born.
On Monday the Germans have a huge celebration on hand to commemorate this giant accomplishment of freedom. Many will be on hand to celebrate this wonderful event including Germany’s Chancellor Angela Merkel as well as the last Soviet chairman, Mikhail Gorbachev. Barack Obama was invited to take part in the event, but as reported by White House press secretary, his schedule does not allow him to take part in these festivities. Upon hearing this news, I was speechless. How in the world can a sitting President of the United States and leader of the free world possibly skip an event as big as this one? Aside from winning World War II, one would be hard pressed to cite a larger example of freedom’s success in modern times than the fall of this wall and the end of the Soviet Union.
Many have tried, but nobody can deny America’s assistance with bringing down the Soviet Union. America engaged in several wars and struggles to prevent other countries from falling under Soviet rule. America would help in countless ways monetarily by sending money and aid to help other countries to stand tall in defense against the red army. The end of World War II left two world super powers who’s economic philosophy were polar opposites of one another. Each would watch each other like a hawk in a brilliant “chess like” game played throughout the decades as each tried to undermine each other. Each country would stare each other down knowing a simple blink of an eye or the first sign of weakness would open an opportunity for the other. All the while, the possibility of another world war with nuclear consequences could be in the near future. The rest of the world would watch this showdown continuously as one country gaining power over the other would affect decisions their governments would make. It was Stalin who once said, “for the final victory of socialism, for the organization of Socialist production, the efforts of one country, particularly of a peasant country like Russia, are insufficient.” (3) The Soviets believed socialism needed to expand to other nations to truly be successful, but during the cold war, America was there every step of the way to slow and prevent the Soviet “domino effect” in other countries. Some of America’s decisions to prevent the spread of communism this day are viewed as controversial, but nonetheless proved effective in keeping Communism at bay all over the globe. Finally the arms race in the 1980’s lead by compassionate, yet firm Ronald Reagan furthered the demise and helped to bankrupt the once great world threat. The fall of the Berlin Wall marked the end of this madness.
I have not heard what Barack Obama will be doing that day instead, but nothing excuses him taking a pass on this event. He found time to fly in the last minute to make a push for the Olympics a few months ago. He flew several times to campaign for his Democratic colleagues running for Governor. He made several overseas trips and has already met with Russia. Obama is only days away from a trip to Asia, I find it remarkable he can’t pencil in some time to stop by one of our best allies for an event as big as this one. He has apologized to the rest of the world endlessly for American mistakes made throughout history, but rarely cites examples of American success. This is Barack Obama’s opportunity to set everything else aside and enjoy the success of world freedom and America’s involvement in helping establish it as such. Unfortunately, the President has someplace else he would rather be that day and is dispatching Hillary Clinton in his place. I am not sure what the President was thinking on this one, but I am extremely disappointed he refuses to show up in person to represent America and share in one of freedom’s greatest accomplishments.
(1) http://www.spiegel.de/international/world/0,1518,655632,00.html
(2) http://www.dailysoft.com/berlinwall/history/berlinwall-timeline.htm
(3) http://www.encyclopedia.com/doc/1G2-3404101254.html
Not so fast. Estimations for positive GDP growth began early this summer; however, a closer look at how this was achieved will reveal a bleak outlook in the future.
The key contributions to growth in the third quarter are listed below:*
• Real personal consumption expenditures increased 3.4 percent in the third quarter, in contrast to a decrease of 0.9 percent in the second.
• Durable goods increased 22.3 percent, in contrast to a decrease of 5.6 percent.
• Real residential fixed investment increased 23.4 percent, in contrast to a decrease of 23.3 percent.
The Economic Recovery Act of 2009 had very little impact on the numbers as the federal government's contribution to GDP growth was up just 2.3 percent.* In addition, the money spent thus far has exceeded total output from quarter to quarter. However, much of the growth is attributed to the government’s “Cash for Clunkers Program” and the $8,000 first-time home buyer credit.
The costs of these government programs have well exceeded $1 trillion. Was this exorbitant cost worth 3.5 percent “growth?” More to the point, there wasn’t any REAL growth! The government has essentially printed money it doesn’t have to BUY growth. This is similar to individuals borrowing money on their credit line, going out and buying goods and claiming that their personal wealth has increased. Money shifting hands is not growth. Speaking of money shifting hands, how many people borrowed more than they can afford to take advantage of these programs betting on the fact a strong recovery is in sight? Does the word “bubble” come to mind?
Now, let’s have a look at the more discerning part of this report.
“Current-dollar personal income decreased $15.5 billion (0.5 percent) in the third quarter, in contrast to an increase of $19.1 billion (0.6 percent) in the second.”*
This is a cause for concern. 4.1 million jobs have been lost in 2009, and unemployment currently stands at 9.8 percent. People who still have jobs have been reduced to four-day work weeks in many cases. With personal income declining and no change in the high unemployment status, it’s time to look beyond the textbook term for an end to a recession.
“Personal current taxes increased $4.8 billion in the third quarter, in contrast to a decrease of $119.1 billion in the second.”*
Current-dollar personal income has declined, but personal current taxes have increased. Many individual states have raised sales taxes, property taxes and income taxes to cope with very large budget deficits. If people’s personal income increased, an increase in tax liability would have made sense.
“Disposable personal income decreased $20.4 billion (0.7 percent) in the third quarter, in contrast to an increase of $138.2 billion (5.2 percent) in the second. Real disposable personal income decreased 3.4 percent, in contrast to an increase of 3.8 percent.”*
Translation – people are barely getting by. Households and businesses have cut down expenses as far as possible. This is not a good situation for a consumption-driven economy.
Finally… “Personal saving -- disposable personal income less personal outlays -- was $364.6 billion in the third quarter, compared with $533.1 billion in the second.” “The personal saving rate -- saving as a percentage of disposable personal income -- was 3.3 percent in the third quarter, compared with 4.9 percent in the second.”*
A key indicator of real recovery is an increase in the personal savings rate for obvious reasons. An increase in personal savings is indicative of job growth and an increase in personal income. People then have dollars to invest to strengthen the markets.
In the end, what does all of this sum up? It reveals how just how effective government intrusion in the economy really is. What do we have in exchange for 3.5 percent GDP growth?
• A very weak U.S. dollar (Take no notice of the short-term bounce it has received from the GDP news, as it will be temporary.)
• A real possibility of a V-shaped recovery, inflation and stagflation if the government does not reverse course soon
• Personal income and savings declining and taxes rising
• A jobless recovery thus far
• An economy currently reliant on excessive government spending to produce positive growth with government spending exceeding the rate of growth
Considering how fast and how much the U.S. economy has declined, growth should have been much higher – possibly 6 or 7 percent. Perhaps that would have been possible with less government intervention and a focus on a strong U.S. dollar. For those naysayers who still believe that a weak dollar is critical to recovery, it is important to state that the U.S economy is not one that relies on exports. In addition, do people really think the U.S. will ever outdo China in terms of labor cost?
I’ll save my celebrating until the United States’ government looks backward in time and remembers the effects of Keynesian “stimulus.”
BY: MIKE PORTER
I find it ironic that healthcare, the strongest campaign message by the Democrats in 2008, has today become the party’s largest thorn. During the campaign, healthcare reform was a clear and concise message that struck a nerve with liberals, independents, and some disgruntled Republicans. Obama and Clinton continued to banter back and forth during the primaries on health care reform which registered with voters and showed America the Democrats owned this issue. Healthcare for everyone was the campaign slogan and nobody would have to pay extra for it - except for a few wealthy people who should buy it for you anyway, right? If you like your current plan you can keep it. If you are down on your luck there will be a public option for you. President Obama rode into Washington with an approval rating just shy of 70 percent on the heels of many promises; the most important being health care.(1) A badly beaten Republican party, who already lost Congress back in 2006, turned the White House over to the Democrats. America today is being lead by the country’s most liberal leaders in our history. Liberal Democrats have majority control in every branch of government – Executive, Judicial, and Legislative.
How could something so good go so wrong for the Democrats? Months after the health care bill has been drafted, many Americans do not fully understand what he is trying to reform. Obama has completely lost control and has failed to lead during this process. Back in 1993 when Bill Clinton was pushing “Hillary Care,” he addressed the nation and explained the plan to the public. Obama has had several opportunities to explain this and to this day all of his addresses have lacked specifics. That leaves one to conclude our President doesn’t understand the plan himself, or he does not feel comfortable talking about the plan with us. I tend to believe the latter, and as long as the media fawns over this man, nobody will put him on the spot with difficult questions that will force him to explain anything. This tactic has not worked, and it has been detrimental to the Democrats.
While our President has failed to communicate with the American people, our government has ignored the concerned citizens who have flooded town hall meetings expressing their concerns. Thepublic option and cuts in medicare have been among their primary concerns. Most people do agree the system needs reform, however many statistical polls show that 75 percent of the people in America are happy with their current plan. Many of these people do not believe the entire system needs to be overhauled in order to provide reform. The current bill, H.R. 3200, does nothing to address the costs that go into why doctors charge so much. Instead, it just tries to “bandaid” the issue by extending insurance to everyone. Many of the so called “uninsured” today already have access to some kind of plan, either private or governmental. Government mandates on insurance and tort laws are the primary reasons why medical costs are so high, yet the bill does nothing to address these costs. Instead, the bill contains more mandates on companies who already provide insurance and individuals being forced to purchase plans. Many are concerned about whether a public option will eventually lead to single payer, and rightfully so. Obama has yet to answer how this can work without adding any new doctors to provide this additional level service. No one has ever explained how illegal aliens will be treated with the public option.
Citizens of this country are storming the town halls and burning up the phone lines calling their representatives frantic for answers. Meanwhile the White House and many of the elite in Congress simply brush this off as a Fox News initiative driven by far right radicals, or people being sent by insurance companies. I cannot think of anything more devastating than public officials ignoring concerned voters in their constituency. Downplaying, and in some cases, insulting Americans who are executing one of the most essential rights of liberty is not going to help the cause. Americans are rightfully angry at the bill's contents. They should be heard and taken seriously by everyone. The people voicing their concerns have damaged the possibility of a public option and the passage of this bill in general. Many "blue dog" Democrats opposed this bill from the start. Meanwhile, some in Congress support an even more liberal version of this bill and do not believe this goes far enough. Many argue the President let the far left have far too much influence in the writing of this bill, which today is over 1,000 pages.
What has happened here is a perfect example of “the straw that broke the camel’s back.” Today, healthcare costs are about 17 percent of our gross domestic product (GDP). The Democrats have decided to quickly push through healthcare without any bipartisan support or debate. The great uniter has quickly become the great divider. America has already seen an expensive and urgent stimulus package which almost all economists agree will never work. Cap and Trade was next, and now healthcare. All of these bills have been enormous making it impossible to read. Bills of this size are in itself an exploit of our entire government model. Americans are seeing spending and deficits that were once unthinkable – despite the outrageous spending from the previous administration. Americans have simply had enough. This is not the change that drew moderates and independents to vote for Barack Obama - that much is clear. America is still a center right nation, and I am proud to say that is not going to change anytime soon. No one in Washington is going to force us to change the way we live so we can be more like Sweden or France. Both are wonderful places to visit and the people there are great, but no one can expect anything there will ever work over here without a drastic change in our lifestyles. It will not happen and outraged Americans are speaking out against this nonsense.
Congratulations to everyone out there who has let their voices be heard. This is how our government is supposed to work. Polls show support for the President and the Democrats are in a free fall. The latest Rasmussen poll shows the President is at a 47 percent approval rating and falling – down from almost 70% only nine months ago!(2) Even George W. Bush, who left office with the lowest approval ratings ever, fared better than this through his first eight months as President. Without a drastic change by this administration, the Democratic party stands to be in a lot of trouble in the 2010 elections.
(1) http://www.gallup.com/poll/113962/obama-starts-job-approval.aspx
(2) http://www.rasmussenreports.com/public_content/politics/obama_administration/daily_presidential_tracking_poll
Adam Smith once wisely said “Great ambition, the desire of real superiority, of leading and directing, seems to be altogether peculiar to man, and speech is the great instrument of ambition.” If only President Obama would embrace more of Smith’s beliefs…
The first two pieces (Part I, Part II) of this series exposed some major caveats in the healthcare bill that Obama is urging Congress to pass and addressed some of the common myths of a free market enterprise system. Now that the criticisms have been established, it is time to focus on the solution.
The Invisible Hand vs. The “Visible” Hand
As President Obama continues to campaign around the nation in an effort to win support for the current healthcare proposal, he is selling the “visible” hand approach. The visible hand has been present in the healthcare sector for decades. The result has been out-of-control costs and a monopoly by the insurance companies.
In 1964, President Lyndon Johnson promised the American people that Medicare would not cost more than $1 per month. For $1 per month, Americans would have a secure financial future knowing that all of their medical costs would be paid when they reach an age when they will require more medical care. It is safe to say that Medicare costs today are far off the inflationary curve, and Medicare no longer covers all costs.
Proponents of government healthcare say that rationing is a scare tactic used by the opposition. The truth is rationing is not a scare tactic, as it has taken place with Medicare. In an effort to control costs, Medicare no longer covers medical care in full. Senior citizens must purchase supplemental insurance in order to have little or no out-of-pocket costs.
Part II of this series touched on government regulation of the insurance companies and the community rating system. Obama’s plan is more of the same. People will not have the freedom to choose what is in their plan. Government regulations require anything from in-vitro fertilization to hair transplants to be covered. Those who may never require those services are forced to pay for those that do, which is why insurance premiums are so expensive. If people have the freedom to pick and choose what they wish to have insurance cover, the premiums will be more affordable.
The community rating system states that people must pay the same rates for their level of coverage regardless of their age or medical condition. It’s a wonder why so many young people opt out of purchasing health insurance when they have to pay the same rates as those who require more medical services. Under the current proposed plan, insurers would not be allowed to charge more than twice as much for one patient than any other patient with the same coverage.
Perhaps it is time for the invisible hand. Real healthcare reform should allow the consumer to freely choose what to buy, how much to buy and allow the producer to freely sell it. This means allowing people to purchase insurance policies across state lines, and removing all government mandates that dictate what should be covered.
Cost Control vs. Number Insured
Which is more important? The magic number is 47 million. Try and type the number “47 million” in a general internet search and leads for “47 million uninsured Americans” will appear. The focus in the current proposal is on the latter when it should be on the former. What good does insuring everyone do if the costs are not addressed? Furthermore, if the costs are not addressed, everyone’s quality of care will be severely diminished.
Countries that have universal care face rationing of care and lack of access to modern medical technology because rising costs do not allow for such investment. Healthcare reform should not be about getting people insured, but rather bringing down the costs in order to allow more people to have access to QUALITY care at an affordable price. Nations that reject centralized government control and incorporate market mechanisms have the best chance of accomplishing this feat. Nowhere in the world has any nation’s government been able to successfully control costs without it coming at the expense of quality care. France’s healthcare system, a country that Michael Moore suggests the United States follow, is the single largest factor driving their overall budget deficit.
Empowering the Government vs. Empowering the People
Which has the power to do more harm? The United States is a country that embraces freedom, so why does the Obama Administration want to empower the government to make the American people’s most PERSONAL decisions? Benjamin Franklin once said: “They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.” If the government bureaucrats are empowered to make people’s health decisions, the United States will suffer one of the greatest losses of liberty.
The Bush Administration didn’t get much right when it came to fiscal and economic policy, but one bright spot was the creation of the Health Savings Account (HSA). HSA accounts create a market that is strictly CONSUMER driven. People are empowered to make their own decisions and use tax-free dollars to pay for medical care. HSAs are not about insurance. They are about people spending their OWN dollars which induces far more cost-conscious behavior, which will play one of the largest roles in bringing healthcare costs down for everyone. This is due to the fact that people spend their own money much more wisely as opposed to “using their insurance.”
HSAs can be structured to reward those who live a healthy lifestyle and give people the freedom to choose the level of insurance based on their needs. People who complete personal health assessments are given funds, and employers can fund the accounts much more cheaply than being forced to insure their employees. Preventative care is encouraged and is FREE. In addition, some people may choose to use HSA dollars to purchase a high-deductible plan in an effort to guard themselves against higher medical costs. The bottom line is the consumer is empowered to make their own decisions as opposed to the government.
The modern technology of government takeover is not improving the wellbeing of America’s healthcare system. Perhaps it is time to try an age-old, natural remedy that has historical proof of success…
Republican Representative Jack Kingston (GA) and 29 Republican co-sponsors filed legislation that would force Obama to actually be accountable by vetting his Czars. This is probably one of the most needed pieces of legislation that we will see in our lifetimes. Obama has a list of 34 Czars – some ‘positions’ that still need to be filled but of that number 27 have not been vetted by Congress. In 6 months Obama has taken it upon himself to bypass Congress and the American people by appointing his very own ‘shadow government’. The Czars report directly to him and are not held accountable to Congress; therefore, not held accountable to the American people – who pay their salaries.
From the United States Constitution - Article II, Section 2:
“[The President] shall have power, by and with the advice and consent of the Senate, to make treaties, provided two thirds of the Senators present concur; and he shall nominate, and by and with the advice and consent of the Senate, shall appoint ambassadors, other public ministers and consuls, judges of the Supreme Court, and all other officers of the United States, whose appointments are not herein otherwise provided for, and which shall be established by law: but the Congress may by law vest the appointment of such inferior officers, as they think proper, in the President alone, in the courts of law, or in the heads of departments.”
This clearly states that what Obama is doing by appointing Czars left and right is a violation of the Constitution. I realize that Obama doesn’t seem to think much of our Constitution but we, the people, DO. The only government officials who can make policy are the members of Congress who WE nominate. The ‘Pay Czar’ cannot tell anyone what their salaries or bonuses will be limited to, it has to be legislated by Congress. Yet Obama seems to think that his Czars can do whatever they want and most people probably don’t understand that his ‘Yes we can’ is really our “Hell no you can’t”. Finally someone is standing up for us against Obama’s outrageous appointments.
I am currently researching Obama’s ‘Shadow government’ appointees and so far I am finding that some of these people are clearly radicals like Obama. There is at least one Socialist (Carol Browner), a fellow ACORN organizer (Adolfo Carrion Jr.), a complete nut job who wrote a book about sterilizing people to quash the growing population (John Holdgren) and his latest appointment Cass Sustein who believes that animals should have the same rights as people, including bringing lawsuits against people. These Czars are clearly not representative of America or Americans. They should not be anywhere NEAR the White House or Capitol Hill other than to attend one of Obama’s Wednesday night soirees.
Presidents in the past have had Czars but they usually act as advisors and do not make policy. Obama has specifically appointed these people to make policy. The most Czars in any administration was during George Bush’s reign who appointed 14 Czars in 8 years. Obama has appointed twice the amount of Czars in 6 months as Czarist Russia had in 300 years! As Kingston points out on his website: “At this rate, we will have: 272 czars in Obama’s fist term (48 months) 544 czars if he lasts two terms (96 months)”. This is obviously Obama’s attempt to bypass Congress to further push his radical agenda by appointing radicals to make policy.
We all must push for this Act to be brought to a vote and passed. This is for our present and our future. We cannot let the House Oversight and Government Reform Committee sit on this. After reviewing some of the representatives who are on the Committee, it is clear that this may be a battle as it is filled with partisan party-line-voting Democrats -Tierney, Maloney, Kennedy, Kucinich - are some examples. Email, call, write, fax every member of the Committee to let it be known that WE, THE PEOPLE, are aware of the Act and fully support it. The Republicans have brought this Act forward, it is now up to us to tell Obama “Hell no you can’t”.
Links for information in the article:
http://kingston.house.gov/News/DocumentSingle.aspx?DocumentID=137527
http://www.opencongress.org/bill/111-h3226/text
http://kingston.house.gov/UploadedFiles/BKAC.pdf
http://www.opencongress.org/committee/show/281_house_oversight_and_government_reform