. . .and we may have found a candidate!
October 26, 2009
Newt Gingrich said he would run for president in 2012 if there is support for his candidacy. Win or lose, his candidacy would do wonders for our party. [via] [video]
Obama thinks Americans making less than $250K grow their own food?
October 22, 2009
Obama’s administration plans to give the FDA sweeping new powers to over see the safety of the food supply. Everyone thinks this is a good idea. I think safe food is good. How are we going to pay for it? Half of the expanded FDA will be paid for by a new $500 tax on facilities that make food. The other half will come from deficit spending – ug. I seem to recall that Obama promised not to raise taxes on Americans who make less than $250K. Unless everyone who earns under $250K grows their own food they will be paying more for food. This is on top of the higher prices the poor and middle class are having to pay for tires due to Obama’s tax on inexpensive imported tires from China (the ones that are on inexpensive cars). I guess Obama is keeping his promise, but is he keeping the spirit of his promise? Everything we consume is costing more – food, tires and health care – is this good for America? Can we afford the higher costs?
Why government should run businesses
Imagine a future where Major League Baseball is in trouble. Three of the top teams are about to fail, but the new president is a huge baseball fan and decides to offer a bank-style bailout to the Yankees, Red Sox and Rangers. The teams are able to stay solvent and the season is able to continue. The government hopes to get its money back if the teams do well enough to attract fans and new investors. Along the way Congress decides that any team that is using federal dollars should have a salary cap of say $200,000. This is below the union contract, but the rules don’t apply to Congress. Do you think the Yankees will be able to keep their best players? Will the fans keep showing up? Will investors be interested? The easy answer is NO. The government will decimate each team rendering them completely worthless.
This is what the government is doing at the banks that owe us (taxpayers) billions of dollars. Annual salaries are being cut by 90% over last year, with total comp dropping by about 50%. I think the folks responsible for the mess we are in should be terminated and we should hire the best and brightest (and pay them handsomely) to fix these companies. I don’t know any CEO worth his salt who would sign a SOX compliance statement for $200K – not a single one.
Democrats target new tax on Advertising?
The advertising business isn’t doing so hot. The various firms we work with are laying off staff, cutting expenses and just trying to hold on until business gets back to normal. Of course the ‘MadMen’ have had to cut back on campaign donations to Democrats and of course to their K Street lobbists. Senate Democrats, led by Al Franken, have decided to get rid of the tax deduction for advertising. Specifically AdAge is reporting, “legislation has been introduced in the Senate to eliminate the federal tax deduction on advertising for prescription-drug medications.” This industry is already reeling from the current economic climate. According to AdAge, “The AAF estimates that disallowing the advertising tax deduction would increase the costs of advertising and marketing for affected companies by up to 35%. The ad industry provides $6 trillion in annual sales in the U.S. and 21 million jobs, according to the AAF.”
Government’s Good Intentions: Inverted Incentives
October 21, 2009
The government has been offering first time home buyers and $8,000 incentive when they buy a home. On its face it seems like a good idea that might help the real estate market. But this $8,000 bonus is helping first time home buyers – i.e. people without a history of repayment or default – buy homes they might not be able to afford. This is very much like the sort of legislation that got us in this mess in the first place. Congress wanted ALL Americans to be able to afford the American dream and as a result pressured banks to make loans to people who simply couldn’t afford to repay them. Good intention, bad idea.
Wouldn’t it make sense to offer a n $8,000 incentive to anyone who hasn’t had any delinquencies on their existing mortgage for the past 48 months? The problem with the $8,000 first time home buyer incentive is that it creates demand for homes on the low end, but doesn’t help anyone currently in the low end upgrade to a better home. They might be able to sell their existing home, but they won’t get any help from the government to buy something newer or bigger. If we offered the incentive to anyone who has proven they can manage their finances well enough NOT to have had a delinquency we would free up existing homeowners to buy and sell homes unlocking equity that is tied up in houses all over the US.
Four minutes you need to watch . . .
October 20, 2009
In December Obama will sign a treaty giving US sovereignty to a ‘world government’ transferring wealth from the US to the third world. Lord Christopher Monckton has a warning for all Americans:
Don’t punish the troops for political failure
October 19, 2009
Afghanistan has been a failed state for my entire lifetime. They have no history of democracy and their current leadership was installed by our government. From all accounts the most recent election was evidently a massive failure – fraught with fraud and malfeasance. Obama and his team are using the failure to put any military decision on hold until the government has legitimacy. All the while Obama’s generals are begging for more troops. The generals have told Obama that he can’t wait to decide. If we do the war will be lost. My opinion is that we should substantially reduce our troops strength and focus on a ’skynet’ approach. The worst option is no decision at all. Leaving our troops in theater without the support they need is unconscionable. Despite that fact, Rahm Emanuel explained that any troop decision would have to wait until the Afghans could be an effective partner. Either give them the tools to win or let them get out – don’t defer the decision until the Afghans get their sh*t together. They never will.
On a side note, my eight year old was listening to NPR with me last week during a report on the war in Afghanistan and suggested that the war would be over when the Taliban runs out of IEDs. Out of the mouths of babes. The sad part is that he is right, but what he couldn’t understand was that they will never run out of IEDs. I tried to explain that they would not run out because they could always buy more; Ethan didn’t why people would sell them explosives if they knew they were going to use them to kill people.
Obama’s Hope Built on a Lie
October 17, 2009
When Shepard Fairey created Obama’s ‘Hope’ poster he stole the work of Mannie Garcia, the owner of a small freelance photography company. When confronted by authorities Shepard claimed that he did NOT use Mannie’s photo, but more recently he has admitted to perjury as well as destruction and fabrication of evidence. His lawyers have indicated they can no longer represent him. The irony of the situation? After the AP confronted Shepard about the photo, asking for compensation, Fairey sued the AP. Yes, the guy who stole Mannie Garcia’s work had the gall to sue the AP for asking for compensation. Wow.
At the end of the day, this situation is ironic. Obama’s plan for America requires that property be taken from one group and given to another (and he is going to take the credit). For example, last week Obama announced he would be making a cash payment to senior citizens of $250. This plan will cost $12 billion and is being touted as part of a ’second stimulus’ to create jobs. You can create a boatload of jobs with $12 billion, but if you divide it up and give $250 to each senior you can’t create a single job. The administration is ‘hoping’ that seniors will go out to Best Buy and buy something. We need to start making investments – investments that are worth MORE tomorrow than they cost to build today. Build a building, build a nuclear power plant, built a road – all of these are examples of capital assets that a) create jobs near term and long term and b) will be worth more tomorrow than they are today. Assets appreciate. Cash payments to seniors make the situation worse.
Just as Shepard blamed the victim, Obama blames us – the small business owners who try to create jobs. He calls us ‘fat cats’, ‘whiners’ or unruly teenagers who don’t know what is good for ourselves. I have hope for America – but my hope is not invested in Obama or our government – instead my hope is invested in the people of America.
Venture Capitalists Falling Out of Love with Obama
October 15, 2009
All my friends in the venture capital industry (and I mean all) backed Obama in the 2008 election. They loved his plans for government investment in technology, research and development. Tim Mullaney from Bloomberg explains that venture capitalist are having a “Lovers’ Quarrel” with Obama over his new tax proposal. Specifically his “plan to double some taxes on venture firms’ profits and a Treasury Department proposal for tighter regulation would hurt innovation without raising significant revenue.” Ouch. This is on top of the administration’s plan to regulate financial institutions including venture capital firms.
Punishing speech is Unamerican
October 14, 2009
This evening my business partner confronted me about this blog. He was concerned that my political speech in this blog was bad for business. Several of his associates expressed to him their concern about my positions on various issues including health care, immigration reform, tax reform, environment and energy, right to bear arms, capital punishment and church and state. Several weeks ago I had a conference call with one of his more liberal friends who counseled me to use a pseudonym for my political speech. He tried to help me understand by offering an analogy suggesting that if one of my employees maintained a blog advocating sadism I would terminate his employment. He really viewed my speech as sadistic and recommended I hide behind a nom de plume.
Earlier today Rush Limbaugh’s business partner ended their relationship over a statement he made in 2006. It is troubling that the Left is working very hard to punish speech. This summer everyday Americans attended townhall meetings and when they expressed their opinions they were met by harsh rebukes by their Congressmen. Called everything from liars to brownshirts by their Senators and Representatives Americans were punished for speech. The Left won – they control the House, the Senate and the White House – why are they scared of dissent? Isn’t the Left supposed to be the guardian of speech?
The truth of the matter is that the Left DOES punish speech. My business partner is right – sharing my opinion in this blog IS bad for business. But I really believe what I write. I honestly believe that “all that is necessary for the triumph of evil is that good men do nothing.” (thanks Edmund Burke) Too many conservatives sit quietly by as our liberal friends yell and scream. There is a place for political speech and frankly I don’t want to do business with anyone who wouldn’t do business with me if they knew my true character.
