Category Archives: economy

General Motors reports $1.3 billion in 2nd quarter profits

General Motors recently reported second quarter revenues over $33 billion and profits totaling $1.3 billion. GM claims it now has made up for its previous $13 billion loss. What was not clear is whether the the $13 billion was made up by the recent $33 billion revenue stream, prior quarter profits, or by the $50 billion bailout by Democrats on Capitol Hill. Whatever the case may be, the federal government still owns GM. A positive light at the end of no GM’s not so dark tunnel is their likelihood of issuing a new public stock offering in the near future. Presumably, this means the recession is now over and the government’s 61% ownership will be purchased by private investors. The key word here is presumably not actuality.

Source: Industry Week, August 12, 2010.

U.S. Bailout Foreign Companies, but What Happened to Peace and Prosperity?

Yesterday, Newsmax ran a story about the federal government bailout of overseas banks and other foreign corporations. Part of the reason was attributed to global reach of AIG. Because we are all part of a global economy, a global bailout was to be expected.

I don’t remember hearing the Obama administration, Congressional politicians, or the media ever mentioning that part of $787 billion would help save foreign banks or General Motors, do you?

To save the world, globalists on Capitol Hill seem to believe Americans on Main Street should welcome state approved robbery. The Washington-run Empire, like all past empires, impoverishes millions of its people for the grand cause of power, status, and the flow of wealth. Remember, most of the imperialists on Capitol Hill are millionaires.
Anyone familiar with the history of bailouts funded by the federal government (including the Federal Reserve) knows this has been going on for decades.

In one sense, global economy is just another nice but deceptive phrase for the increasing reach of American economic empire. It appears that the goal of Democrats is to increase the burden of empire to the point of America’s bankruptcy.

That is one important factor that led to the decline and fall of the Roman Empire.

Are the elites among the Republican Party any different? I doubt it. Can you remember any America president or Congressional majority ever proposing to end the American military presence around the world? Only Ron Paul proposed such a thing. Doing so would put billions of dollars back in the pockets of Americans. A large scale-back of U.S. military’s global presence would also mean leaving America’s global corporation vulnerable to the dictates of foreign governments and the interests of their people. Not that the wealth given to foreign government by American corporations is used to prosper all of their citizens, but its does keep foreign dictators willing to dance to America’s green tunes. Think of how much that would save taxpayers if Congressional politicians were not so willing to travel to all of those subjected nations.

I know; we are the leader of the world. World peace and prosperity is dependent upon our government. Millions at home and certainly abroad are still are wondering when real peace and prosperity will be achieved. Maybe the elite’s utopian vision is flawed. Just consider the achievements of that bastion of global peace, the United Nations–not very impressive. No lasting peace in Israel, genocide in Sudan, massacres in Africa, wars in the Middle East, Europe, Central America and elsewhere, and now terrorism. Don’t misunderstand me, sincere efforts toward peace are honorable, but repeating failed policies and strategies of the past is to demonstrate stupidity.

Again, the lessons of failed empires of the past demonstrate egalitarianism, multiculturalism, moral relativity, immorality, and much debt are all co-factors in what social scientists call structural violence, which includes poverty. The peace waged by all empires has been most won and maintained by the merciless power of their armies. Empires have never been very effective at creating real peace or prosperity for masses of non-elite peasants. America is no exception.

American exceptionalism inherited from its founder’s vision has been fading away for a long time. Maybe it’s not too late to revive it.

Ohioans ready for Big Fixes

On July 28, the Buckeye Institute released a statewide poll of 1,800 registered voters that shows Ohioans are at odds with their government leaders on the major issues of the day, especially regarding government compensation, regulations, and Ohio’s pro-union policies. Magellan Data and Mapping Strategies of Broomfield, Colorado, conducted the poll on July 19, 2010, via an autodial survey of registered voters from across Ohio. Because of the large sample, the survey has a margin of error of 2.31%.

Here are some top-line numbers:

·    50% think government leaders should first reduce government worker
     compensation to eliminate the $8 billion budget state deficit;

·    Only 16% think taxes should be increased to eliminate the Ohio deficit;

·    52% think Ohio’s state and local taxes are too high;

·    56% think Ohio’s regulatory environment makes it harder for businesses to
     create jobs and grow;

·    85% think workers should be free to choose whether to join a labor union to get      jobs;

·    67% think we should stick with coal or add nuclear and natural gas energy.

Source: Buckeye Institute Reports, August 9, 2010.

Statewide Poll of 1,800 Registered Voters Shows Ohioans Ready for Big Fixes

The Buckeye Institute for Public Policy Solutions today released a statewide poll of 1,800 registered voters that shows Ohioans are at odds with their government leaders on the major issues of the day, especially on government compensation, regulations, and Ohio’s pro-union policies. Magellan Data and Mapping Strategies of Broomfield, Colorado, conducted the poll on July 19, 2010, via an autodial survey of registered voters from across Ohio. Because of the large sample, the survey has a margin of error of 2.31%.

Here are some top-line numbers:

· 50% think government leaders should first reduce government worker compensation to eliminate the $8 billion
budget state deficit;
· Only 16% think taxes should be increased to eliminate the Ohio deficit;
· 52% think Ohio’s state and local taxes are too high;
· 56% think Ohio’s regulatory environment makes it harder for businesses to create jobs and grow;
· 85% think workers should be free to choose whether to join a labor union to get a job; and
· 67% think we should stick with coal or add nuclear and natural gas energy.

Other than for government workers who think cutting compensation and cutting services are equally appealing, every other demographic group chose cutting government compensation as the top choice to cut the deficit. Except for one group, every demographic group thinks Ohio’s taxes are too high by a majority or plurality.

On Ohio’s regulatory environment, every demographic group by a majority or plurality feels our regulations make it harder for businesses to create jobs and grow. The most stunning result is that all demographic groups support a worker’s freedom to choose whether or not to join a union to get a job with all but five groups polling at over 80 percent. A whopping 93% of Republicans, 87.7% of Independents, and 77.2% of Democrats want workers to have the freedom to choose.

Buckeye Institute President Matt A. Mayer noted, “It is clear Ohioans believe that business as usual is not sustainable. As always, common sense Ohioans are ahead of the politicians. I hope our elected officials follow the people and don’t just say, but do the right thing to get Ohio growing and prosperous again.”

Rep. Steve Austria on Blue Ribbon Commission

It is important now, more than ever, to focus on how our region can be more competitive and bring additional jobs to Ohio. This week,  I joined members of the Blue Ribbon Commission at a meeting held at Wright State University. I appointed the commission to examine how local companies and universities can better position themselves to win more contracts, create more jobs and support Wright Patterson Air Force Base, one of the largest single site employers in the state. It is made up of a broad cross-section of talented and energetic community leaders who have extensive experience both inside and outside the fence, including business leaders and individuals in academia.

When the commission was formed, members were tasked with submitting their recommendations for increasing the number of contracts awarded to local companies, in turn creating more private-sector jobs in the area that can be sustained for years to come. They were asked to look into a wide variety of issues including identifying any impediments to local companies and determining the best business model to receive contracts.

The commission has completed its work and identified 18 specific ways we can enhance regional economic opportunities through partnerships with the business community, academia and government in the Dayton area. John McCance, who is retired Air Force, and Gary Kowal, who has several years of experience in defense contracting, served as co-chairs of the Blue Ribbon Commission and presented the commission’s findings, conclusions and recommendations to the public. Some recommendations highlighted in the report include,

* Utilize social media (a website, or collaborative networking site) to house centralized information to include such items as a calendar of events; detailed information on government requirements; prime/sub contractor opportunities and links to related informational sites.

* Leverage the region’s engineering capabilities and skill base to accelerate subcontractor opportunities with large defense contractors who are involved in the research, development and manufacture of weapon systems acquired by WPAFB.

* Publish the “Corporate Development Education Framework” as a tool to help beginning, intermediate and advanced businesses assess their government contracting maturity and identify areas for improvement.

* Establish a centralized electronic capability for local area businesses having service, R&D, manufacturing, and other capabilities to provide detailed information about their qualifications, capacity and contact information and have it indexed by product and service.

* Encourage the State of Ohio and local governments to support a program, similar to the State of Utah, which provides funded support in the areas of opportunity assessment, strategy, proposal development, contract negotiations, capture and program support.

* Provide access to additional resources and training in the area of proposal writing and preparation.

Economy Continues to Struggle One Year After Biennial Budget

By Jarrod Martin, State Representative

As we are all well aware, Ohio’s economy has continued to struggle while other states have seen a slight economic rebound. Unlike many of our neighbors, our economy cannot grow because our tax rate is so high. If we were able to lower taxes, small businesses would have more income to hire new employees and businesses across the state would expand because Ohioans would be spending more. However, House Democrats raised taxes in 2009 and passed a budget last July that will cost the taxpayers for years to come.

The biennial budget, which passed in 2009, increased spending by $1 billion in 2010 and $950 million more in 2011. Tax revenue alone cannot fund this budget nor repair the state’s deficit. The Office of Budget and Management projected that the state’s tax revenue will grow by $974 million in the next two years, but will not reach the $5 billion necessary to replace the losses from this budget’s out of control spending.

To otherwise fund this spending, the governor proposed 150 new fees that will take nearly $1 billion from the wallets of the taxpayers. Additionally, the budget usurps $8.5 billion from one-time sources that could have been more wisely spent. On top of these sources, the state received $900 million more from the taxpayers after Ohio’s Democrats passed House Bill 318, which repealed the final installment of the income tax reductions and raised your 2009 income tax rate by 4.2 percent.

With the government reform initiatives my Republican colleagues and I proposed, the state would have saved more than $1 billion annually. Our proposals include legislation to streamline the bloated executive branch and to weed out wasteful Medicaid spending. We found areas where we can painlessly eliminate excess spending; however, the House Democrats decided to cut spending from the areas that need funding the most, including education and elderly health care programs. Their shortsighted moves will jeopardize important programs and will not pay off in the long run.

Raising my three children in Beavercreek, I frequently think about their future here in Ohio and whether there will be enough incentives for them to stay when they are considering colleges and careers. I fear that our state will not grow jobs and hold as many economic opportunities for them if we continue to overspend and burden our taxpayers. All parents hope that their children will have as many opportunities-if not more-than they had, and I would like to do my part to make this a reality for all of our children in the Buckeye State.

Islam, AIG Bailouts, Federal Reserve Banks, Tim Geithner, and Barak Obama : Connections

I just came across a pending federal court case against U.S. Treasury Secretary Tim Geithner and the Federal Reserve for their involvement in the federal governments bailout of AIG bank. The case alleges the federal government’s bailout and majority ownership is a violation of the Establishment Clause of the U.S. Constitution. By bailout and acquiring a controlling interest in AIG, the federal government participates in funding Islamic Sharia law and religious activities. The White House leaders and Federal Reserve leaders not only knew they were funding Islamic religious activities but the openly publish it on official website and similar means of communication.

It becomes clearer why a Muslim President was needed to work his PR magic throughout a stupefied America as well as predominately Muslim Middle East. Acquiring AIG is good for Islam. It is good for federal revenues, and it is good some types of investors. However, it is not good for predominately non-Muslim taxpayers to fund Islamic religious activities no matter how profitable it may be.

Some prophecy writers see Islam as dominating the globe during what the Bible describes as the last days. The same believe the anti-Christ will be a Muslim. They also see this anti-Christ figure as having worldwide control over commerce and banking. Could it be we are witnessing the means by which the anti-Messiah will rise to this level of power?

Too Big To DISCLOSE? SBE Council Rips Bill that Protects Speech of Powerful Interests, but Muzzles Small Business

With a June 18 vote expected in the U.S. House on the so-called “Democracy Is Strengthened by Casting Light on Spending in Elections Act” (DISCLOSE Act, H.R. 5175), a leading small business advocacy organization ripped the legislation, and said its clear intent is to silence the voice of small business during the 2010 election cycle. SBE Council President & CEO Karen Kerrigan sent a letter to every House member detailing the group’s outrage about H.R. 5175’s “unconstitutional, discriminatory, onerous and politically motivated underpinnings.” SBE Council will KEY VOTE the legislation as a vote against small business in its upcoming Ratings of Congress.

“Small business owners are rightly outraged by this legislative charade. It imposes complex and burdensome ‘disclosure’ requirements on businesses and their associations, while exempting big powerful interests like labor unions, the NRA and AARP. First there was ‘too big to fail’ and now ‘too big to disclose’ – small business owners keep getting the shaft from this Congress,” said Kerrigan.

According to SBE Council’s Kerrigan, H.R. 5175 is a bad bill that got worse once the National Rifle Association (NRA) cut its deal with House Democrats. The NRA will not take a position on the bill ever since language was included that effectively exempts the organization from its onerous and unconstitutional demands.

Kerrigan said, “This special deal for the NRA and other groups is a scandal. It speaks to the desperation of the bill’s supporters to muzzle the business community during the upcoming election cycle.”

The unwarranted, complex and burdensome disclosure requirements in H.R. 5175 would apply to businesses and business associations, but not to labor unions or the NRA due to the crafty donor levels designed by the legislation. Blanket restrictions on election-related speech, such as independent expenditures, would be placed on government contractors, but effectively not unions under government contract. Unworkable and intimidating “stand by your ad” provisions would only apply to business groups and other advocacy organizations.

“Essentially, the free speech rights of labor unions, the NRA and a few other powerful interest groups are left intact by the bill. Our voice is effectively curbed by the legislation,” added Kerrigan.

According to SBE Council, the bill’s language flies directly in the face of the kind of speech most clearly and fully protected under the First Amendment, i.e., speech related to politics, elections and policy. The U.S. Supreme Court has been clear in its decisions that such speech warrants protection, and any differential treatment of speakers based on identity or content violates the First Amendment.

“No matter where one happens to fall on the philosophical and political spectrum, this legislation is nothing less than shameful,” concluded Kerrigan.

SBE Council is a nonpartisan organization dedicated to protecting small business and promoting entrepreneurship. For additional information, please visit: http://www.sbecouncil.org/.

Obama Seeking Another $50 Billion State Bailiout

The Business & Media Institute recently reported Obama is seeking $50 billion state bailout package from Congress. In a June 12 letter, Obama urged both parties to pass a derailed stimulus bill. He claims the bailout would preserve government and private sector jobs. Government jobs Obama is trying to protect include teachers, fire fighters, and police. If memory serves, the last $787 billion stimulus supposedly had already saved those jobs.

CATO Institute Budget Analyst Tad DeHaven criticized Obama’s latest request as a union bailout. Most, if not all, of the above government jobs are indeed union jobs.

Maybe Gov. Strickland’s comrades in the White House are trying trying to help him pay for Xenia’s union jobs too. I’m not sure it would ultimately save Xenia taxpayers any money for in the long run taxpayers will have to pay their portion of the $50 billion anyway. Taxpayers and consumer always pay for more government spending. But it sure would be nice for our local government union employees to get their raises without raising our taxes especially during the on-going Great Recession.

Ohio Legislators Pass Questionable Obesity Bill

Healthy Choices for Healthy Children legislation–SB 210–passed both Houses of the Ohio Legislator. The bi-partisan legation aims to address childhood obesity. As reported by the Ohio Hospital Association, more than one in three children (35.6 percent) in Ohio is overweight or obese. The bill specifically targets increased physical activity, improved nutritional options, and body mass index (BMI) testing in Ohio schools. (Heath e-News+ June 4, 2010)

Commendable as this bill may be, its provisions like the following raise some questions:

* Providing free breakfast to eligible children during the school day;
* Requiring physical education (PE) teachers to have a PE license;
* Increasing parents’ awareness about their children’s health through BMI screenings.
 

The first provision-providing free breakfast–has been part of federal funded since the beginning of the Elementary and Secondary Education Act. This grand federal empowerment program has been a local school cash cow for both poor and rich school districts alike. So, why does Ohio legislators need to duplicate an existing program? Is the U.S. Department of Education too bankrupt to continue funding it? Does the feds require more local and state paper work to obtain those dependency enhancing programs? Or are Gov. Strickland and his liberal associates in both the White House and Congress inspiring Ohio politicians to attempt another attempt to double dip into taxpayers dwindling pockets? Besides being ignored by the powers that be, one answer to these questions is why not convince McDonald’s, Taco Bell, Bob Evans, etc. to contribute free breakfasts to their many community’s needy school children. This would provide such business endless “good neighbor” marketing fodder.

Besides, what does free breakfast have to do with reducing obesity? If schools serve bacon and donuts with breakfast. will that reduce body fat or obesity?

The second provision–requiring PE teachers to possess a license–is eye-popping. Who would have ever thought it possible for any Ohio teacher to teach without state certification or license? Could it be current unlicensed PE teachers (if they actually exist) are training kids to be lazy, computer mongering, and junk food connoisseurs? I think not! If finger pointing is called for, the big fat finger should be pointed at school officials wanting monetary kick backs from pop, candy, junk food machine vendor purchases by students and fat teachers. Another boney finger should be aimed at those same officials for permitting  during homeroom TV programming whose advertising sells the same obese enhancing junk foods and other accouterments of that lifestyle. One more waging finger should alos be pointed in the same direction. The same school officials are often guilty of condonning  lunch menus that mimic fat food restaurants.

At home, parents may cater to their kids’ whinny demands for fat tasty foods, but paternal state officials should have an even stiffer backbone. Alas, the paternal state also trains society’s parents and their children. Big sigh!

Of course, the obesity problem may be like other post-modern lifestyles; they were born that way. Those poor downtrodden fat kids are just victims of their DNA (and a few actually are). That means Ohio legislators and health professionals should be ashamed of themselves for forcing on them a false and degrading solution to an irresolvable condition. OAA (Obese Anonymous Association) may be there only refuge and hope. Better than that, they probably just need to come out of the closet and flaunt their fatty stuff.

But, please, don’t blame PE teachers. They do not deserve the regulating punishment of state licensure for the paternal state’s lack virtue and self-discipline. It is the paternal state itself that should be required to possess a license. That might enable the public to better regulate its attitudes and practices.

Last but not least  is the third provision–the Body Mass Index.  School-based BMI screening of children might help parents to regulate their children’s weight issues. However, it will never replace the good old fashion practice of making kids eat a healthy diet. The paternal state and its local school nannies are not necessary for a stern disciplining mom or dad.

What would help parents and the rest of Ohio citizens even more than a BMI index is a GSI index. No, GSI is not a gas saturation index. GSI is a government-spending index that would make Ohioans aware of how much wasting fat the paternal state is accumulating. After all, GSI would also remind Ohioans how much of their limited incomes the paternal state is consuming on the proverbial junk food called debt.