Thursday, September 8, 2011

Fully committed to their treachery

President Obama has proposed a laundry list of Republican’s previous proposals for job creation. He is of course counting on the Republicans not passing this into law as it would be a dismal failure if enacted. Only 100 of the 400 billion dollar proposal is actual infrastructure work that would provide stimulus to the economy. This is 1/30 of the amount needed just to revitalize America without doing any expansion or modernization along the lines of what China is doing. Obama made reference to China in an effort to shame the Republicans into doing something, but this proposal is so anemic that Obama should himself be ashamed to compare it favorably to what China is doing.

The bulk of the proposal is payroll tax cuts but some of that is already in effect and is not new stimulus but rather just a defensive move to keep things from getting worse. Eric Cantor jumped right in, proclaiming that the Republicans could peel off certain proposals and pass them, like the 50% payroll tax cut for employers. This is the one aspect of Obama’s proposal that would do zero stimulus, so of course the Republicans can get behind that.

Obama did take the occasion to announce his intention to go ahead with mortgage refinancing at the current 4% rate which would save the average family $2000 a year. Obama pointed out that Republicans should be in favor of that sort of thing, he didn’t get any applause, in fact they will oppose it vehemently. It will cost their real constituents (the rich) billions. He made a point of saying he doesn’t need Congressional support to do this, this elicited more silence.

Obama also alluded to “other” unnamed things he intends to do without Congressional approval. The one really big thing he could do is a “Michelle Bachman” on gas prices. It’s within the President’s power to drive down commodity prices by restricting who can trade in the futures market, and by increasing the margin requirement to 50%. Rules to do this under the Dodd-Frank Law were to take effect early this year and are now tentatively scheduled for the end of year if there aren’t more delays.

The President’s speech was “political” or you could say it was educational in the sense that it again points out that Republicans are traitors. Obama also passed the buck to them on paying for the proposal by finding still more budget cuts. Something Republicans really don’t want to do, as real voters would find themselves on the receiving end of such cuts. He also suggested that they might raise Warren Buffet’s taxes to the level of his secretary’s, (gasps of horror).

In short, the things within Obama’s power to do, mortgage refinancing and energy price cuts would have far more effect on the economy than the Republican mish-mash he proposed in this speech. The only thing is that the economy will still be in the tank a year from now and Obama has to convince voters that he’s really doing something while the Republicans aren’t. Luckily for Obama the Republicans can’t figure out how not to play along as they are fully committed to their treachery.  www.prairie2.com

5 comments:

jimmy said...

YOU SUMED IT UP BEAUTIFULLY! Thanks for your incite and for having an intelligent sub for you while you were on vacation.

jimmy fr. S.F.,CA

Jack Fox said...

Ok, allowing for the fact that Obama appears to be playing more "chess" with rethuglicans, and given that he has in the eyes of many progressives like myself, been seen as a serial compromiser, how does he motivate us to show up and vote for him next November 7th?

Anonymous said...


Jack Fox said...

Ok, allowing for the fact that Obama appears to be playing more "chess" with rethuglicans, and given that he has in the eyes of many progressives like myself, been seen as a serial compromiser, how does he motivate us to show up and vote for him next November 7th?




Hmmph! You can't be much of a "progressive" if someone has to motivate you to vote... especially when it doesn't cost ya' nothing but a few minutes of your time! Hmmph!

Just one woman's opinion...

Tony said...

All I've heard the last week is how liberals and democrats "love" Obama's proposal. I kept studying it and scratching my head, as it seemed like a GW Bush wet dream more than the beginnings of a "newer deal," which is what this country really needs.

I am utterly startled by the fact that this crappy proposal will also continue the payroll tax cuts and indeed cut it even slightly further. The payroll tax should be around 6.2%, but this cuts it down to less than 3.5%. This tax DIRECTLY funds social security!! So we hear Obama and the rethugs complaining about social security "solvency" while they propose more cuts to the very revenue that will keep social security going. This is insane economic policy and is being perpetrated on the backs of the middle and working class.

If we simply increased the payroll tax for all wage earners, instead of the current maximum that stops taxing income at about $120k, we wouldn't even be having this conversation.

These rich people aren't just the republican constituents, they are the Obama base as well.

prairie2 said...

It's true an across the board FICA tax cut is bad policy, a 100% cut on all earners under 150% of the poverty line would make more sense, what Obama said upfront is that these are all Republican proposals. They either pass this or they show themselves to their own base for what they are.