Today’s Obama Speech Without the Fog

We can now stop calling it “The Big Jobs Speech” and start calling it the “American Jobs Act” as that is what Obama will, later today, unveil before a joint session of congress. “The American Jobs Act” and I can tell you now, before the speech is made, that Obama has failed.

How can one say, before the speech that it has failed? Because in it’s very title, we find the fundamental flaw, the precise thing which will cause its self destruction. “The American Jobs ACT.”

What this president cannot grasp, because of his ideology is that GOVERNMENT does NOT create jobs and any ACT of government aimed at doing so will fail. Government creates government jobs and sure those jobs look shiny and attractive…for a while…but they cannot be sustainable.

What are we to expect from a president who has never had a job in the private sector, never created jobs in the private sector and who’s revolving door of top economic advisers has never spit out anyone who has any economic experience beyond the halls of academia?

The PEOPLE who create jobs, the entrepreneurs, small business owners, and corporate business owners all want the same thing. They want government OFF their backs…PERIOD. When those people catch onto to some ACT of government meant to create jobs are they going to breathe a big sigh of relief? Will they just start creating jobs out of thin air? Of course not because this is exactly more of the same as far as they are concerned.

Another government act, another government program, another promise to put Americans to work right now…from the GOVERNMENT.

Later today, Obama will place a spending act before the joint session and the American people with a price tag of nearly 400 billion dollars. Neither Obama or his spokesman Jay Carney will CONFIRM that figure but Carney’s quickness to NOT CONFIRM it while at the same time not DENY it means the 400 billion in spending is pretty accurate.

Carney, this morning was also fast to point out that “IT’S PAID FOR” through a series of other suggestions we will hear from Obama later today including the closure of loopholes for the rich and corporate jet owners.

This will be an ever so slight change of wording from Obama who has for years wanted to RAISE taxes on those people and now will settle for a closing of loopholes.

Let’s look at that claim again, “It’s all paid for” which Carney stated more than once this morning and which Obama will no doubt emphasize later today.

It’s not all paid for. Not yet anyway. In stating this, Obama is looking for political leverage to use in his campaign against republicans in congress and it provides insight into his reelection strategy.

He’s going to run against congress.

Obama today will propose spending AND new sources of revenue which could also include a value added tax on goods and services (one of the “NEW” things we will hear in his speech) which will have to be passed through the House. There is a pretty good chance not all of it will pass and when it doesn’t, Obama will be out on the campaign trail trying to vilify congressional republicans for  killing jobs when in fact what those republicans would REALLY be doing, is putting the brakes on taxation, maybe a form of double taxation, and not passing yet another GOVERNMENT job stimulus bill.

Here is another way to look at the “It’s paid for” claim.

Since there is no budget, NOTHING is actually paid for except those things with are perennial expenditures and those exist on the back of temporary spending measures. The very republicans Obama will attempt to vilify are the ones who DID pass a budget only to have that budget denied the light of day in the senate.

Obama’s budget did not receive a single vote in the senate losing 97-0 and the democrats, even while they enjoyed the majority in both the House and Senate never passed a budget for the Obama administration.

Any NEW spending, which the American Jobs Act clearly would be, must be paid for with NEW revenue and closing a few loopholes will NOT generate 400 billion dollars. He will bring up tax relief for some…a conservative approach meant to pull in independents and will try to shore up his base by proposing new taxes.

Obama has had jobs stimulus money and has spent it wildly before to not avail. His shovel ready jobs stimulus failed because as even HE was forced to admit, “Those shovel ready projects weren’t as shovel ready as we thought.” Now, he’s poised once again to tell the American people that “Business is on board, workers are on board” and that there are companies and people ready to start rebuilding our schools and roads and bridges right now.

If, and it’s a big if, Obama actually has any “companies on board, workers on board or businesses on board” in his pocket, it’s because Obama’s in the pocket of the unions and the only real jobs available will be union jobs. If he DOESN’T find a way to placate the unions now, he’ll lose their reelection support and if it doesn’t work out he’ll try to pin it on republicans giving him a back door out with the unions.

Obama will point the finger at congress (read republicans) and insist they act on his recommendations quickly, implying they have been dragging their feet at the American people’s expense (while ignoring the trenches he and the democrats has dug with their own shoes) and try to create a campaign impression that any impedance to his scheme will cost more jobs, higher unemployment and a 2nd recession.

Don’t be surprised if Obama also mentions having the Fed just print up an extra 400 billion or so dollars to “jump start” the American Jobs Act which will be repaid by the passage of his measures through congress “as we cannot afford to wait” for congress to act as every day without adding jobs is straining an already strained economy.

DO be surprised if he trys to float THAT idea and makes a point to inform us that simply printing another 400 billion bucks devalues the dollar even further and increases the cost of living and Americans already hard hit from previous failed stimulus plans and money printing schemes.

Here is the bottom line on the “It’s paid for” line. It’s only HALF of a statement and without the rest of the mission reality…it’s a lie.

To be a full statement and an honest one, the line SHOULD be…”It’s paid for with money we don’t yet actually have but will have if republicans agree to raise revenue through higher taxes by passing Obama’s measures without really knowing what’s in them.”

Obama will campaign on things like the idea of creating an infrastructure bank which allows states to draw from it for bridge and road projects. While that will make unions happy since they will be reap the benefit of it, it’s actually much more of a conservative idea…giving more control to the individual states rather than to federal government.

He’ll campaign on closing loopholes in the tax code but that too came from conservatives last month during the debt ceiling talks.

He’ll campaign on the backing off of new EPA regulations…another conservative idea.

Any way you look at it, the American Jobs Act, in name, is a misdirection of reality. It’s NOT the AMERICAN Jobs Act at all. In REALITY, it’s the GOVERNMENT Jobs Act and GOVERNMENT only creates GOVERNMENT jobs. Any private sector jobs created by such legislation will be union jobs and those unions funnel money right back into the democrat coffers for campaigns.

Republicans returning from their districts and having heard from their constituents will be in no mood to offer Obama anything resembling a blank check not will they be amenable to yet another stimulus scheme. They will most likely act on ideas they have put forth before, loophole closures for instance but little more meaning this plan is nearly dead on arrival.

Trust that the DOA status is something of which Obama is fully aware and therefore, today’s speech is but one thing.

It’s a campaign speech in front of a joint session of congress and a national television audience.

If you think the vilifying of republicans over aspects of this Government Jobs Act speech won’t start until the House says no to a measure contained within, think again. It’s already started and Nancy Pelosi fired the first salvo yesterday.

Despite Pelosi’s tantrum, republicans are completely within bounds NOT to offer a rebuttal to this oration until after a nominee is chosen. While the Congressional Budget Office does not rate speeches, neither does the republican leadership rebut campaign speeches.

Once again, the most transparent administration in history is trying to fog the glass. Here’s the clear view:

The American Jobs Act is really the Government Jobs Act. When Obama talks about creating jobs today he’s really talking about creating more union jobs. When Obama mentions “American Workers” he means Union Members. Increased revenues are tax hikes. Value added Tax means double tax.  His address to a joint session of congress is really a campaign speech and all this amounts to is an Organized Labor bailout.

One thought on “Today’s Obama Speech Without the Fog

  1. The US economy is in a mess. You spend too much and tax too little. You complain about high taxes, yet compared to your OECD shipmates pay significantly less as an overall %. Even Canada with its high personal tax rates and GST / HST has an overall lower tax burden. Business in Canada pay corporate taxes at the low 16.5 and soon 15% rate, while the US is stuck in the 70’s with a high 35% rate. Canada, like the rest of the world (except the US, Burma, Malaysia, Hong Kong and the Gulf countries) has a VAT which is levied at 5%, far lower than the VAT rates in the EU. Perhaps Obama can look North to Canada – the same country that supplies the US with more than 1.4 million barrels of oil a day – for an example of fair taxation.

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