Tag Archives: revenue

Economic reality and unemployment

unemployment
image source: marketmixup.com

The most recent unemployment number, 6.7% nationally, unchanged from the previous month. Among Millennials the number stands above 15%. One of the “news” pieces on Fox this morning was on how those in the 15% who favored President Obama have been failed by him (The Young Vote). Has the President failed the youth of America? Or, has and IS America failing the youth and for that matter everyone?

The Great Recession, does Fox and everyone else remember this devastating economic event? I certainly do and the lasting effects of the GR is seen in these numbers and will continue to affect our economy until economic, monetary and tax policies are reversed. Yes, President Obama has failed the youth and America as Bush II, Clinton and Bush I, all the way back to Reagan. Business in America, the favored group with the all to well-known “trickle down economics. Which despite the rhetoric from President Obama has continued for three decades with little on the horizon to hope for change soon. The tax system, with its low rates on the rich and business (with its tax breaks) would be a great starting point. Changing these breaks to encourage business to build factories and manufacture here and encourage EMPLOYMENT.

Everyone cannot be a professional! College and the youth who have been left behind. College that many of us have encouraged for our children, are there enough jobs for these youth? By the plus 15% unemployment number, one would have to say that answer would be no. With more college graduates each year, one can expect a higher number in the future. But where will they get a job if they don’t go to college? We make less in this country each year, so moving to the “labor” of the labor market a failed choice as well.

Raising the minimum wage, a great idea? Not if it is done on its own. Let me be clear, I favor a minimum wage increase ($15.00). It will immediately impact the lower paid workers and will benefit our consumer economy. Done alone, it will not have a lasting impact. Washington MUST promote investment in America, its manufacturing capabilities along with its infrastructure to move those products.

America’s decline, high unemployment and under-employment. How does President Obama, Washington fix? Politicians must acknowledge first that the 30 plus years of “trickle down economics” has created our current woes. Fixing it, not just one move will change our direction. The economic divide is the largest it has ever been and if allowed to continue we are well on our way to the next depression.

Debt ceiling, raising the limit or default?

Congress
image source: www.teambuildinginc.com

The nations debt ceiling limit is fast approaching and what will happen if it is not raised? Opinions on the effect of not raising the limit vary depending on which side of the aisle you sit on (Republican/Democrat). Fundamentally the government will not be able to spend money that it does not have, borrowing will cease. The rate of borrowing by the United States is at the alarming rate of $30,000 a second. Obviously this number is unsustainable (to steal a GOP word) but how long can it possibly continue without addressing?

To service our debt the government last year spent $223 billion on interest payments on a debt of $17 trillion. With a continued budget deficit in last years budget of $901 billion (5.5% of GDP) this number would be the number to focus on. To eliminate the need for increasing the debt ceiling, Washington needs to address this number. The sequester that effectively reduced the deficit with automatic cuts took both parties off the hook politically. And more needs to be done if we are to get our house in order. But what needs to be done seems impossible considering the gridlock of Congress.

Increasing taxes or to decrease spending? Or a combination of both? No new taxes always the pledge of the GOP is not a realistic approach as cutting programs is not to Democrats. The deficit in comparison to the overall budget of $3.8 trillion is significant about 24%. These numbers indicate that both parties will have to move from their positions if we are to successfully balance our budget and send the debt ceiling fear to extinction.

If no agreement is made and we “default”, the government will not go bankrupt. Spending will be prioritized and some will be paid and others will not. Service on our debt will continue, Social Security payments will likely be made and our debt? This will stop growing at least for the short period that no deal is in place. The overall effect on our economy is unknown. To be a betting man, I would think that the stock markets would crash and “WE THE PEOPLE” will suffer yet again. Those in Washington who are representing, I would also bet that their paychecks will not be at risk.

sources: bankruptingamerica.org , Wikipedia.org , Thomas.loc.gov

Fiscal Cliff is exactly where Washington wants to go

Remember Us? we made the fiscal cliff

DOOM, the Fiscal Cliff is on the horizon and Washington again is at impasse? Much is being said of this impending DOOM that will fall on the economy if nothing is done. Automatic spending cuts and tax increases will enacted on January 1. The “Fiscal Cliff” a name that has been given to legislation bourne from previous non-compromise, or for a more honest description the failure of the SUPER COMMITTEE. We do remember the Super-Committee don’t we?  The bi-partisan group of leaders who were tasked with dealing with taxes and spending. Now, the countdown is on AGAIN, to a meaningless deadline that the useless in Washington will ignore.

Yesterday Mitch McConnell said it best, “we will either reach compromise or we will not.”  Does this sound as dire as the media is making out to be? The cliff, falling off to where? It is the place that both parties want to be in some fashion or another isn’t it? Automatic spending cuts( The Republicans) and Tax Increases on the Rich (The Democrats), will be the result that they  the end result after this latest failure in Washington.

So what did they actually do? They avoided the difficult, which is standing by a position either it be tax-cuts or spending-cuts and passing it off as a “fiscal cliff” to the American people. And the American People bought it hook-line and sinker. The cliff that we are allegedly about to fall off of and into economic calamity will have no name or party attached. All of that has been avoided and we have just voted basically all of them in again. John Boehner will get to pass the buck along with Nancy Pelosi and every other member of the House and Senate. The blame, will be because “they” cannot compromise, “they” being Republicans and Democrats not the actual NAMES of those with the power to make or in this case not make tough choices.

It will be left up to us to decide how this “fall of the cliff” will affect out lives. Afterall our economy is driven by the consumer and we will create our next recession or we won’t. So to steal a line from former President George W. Bush,”Go out and SHOP”,our economy depends on it.

Growing America’s economy the Eisenhower way

image: en.wikipedia.org

America’s future and how do we grow our economy, the never-ending and always hotly contested debate in Washington. Party-line politics drives much if not all the debate with tax-cuts taking center-stage with Republicans. The belief that private business will create jobs with tax-cuts and tax-breaks. Always avoided in their claim the obvious. which is many of these companies are pocketing the savings and/or returning the money to shareholders. Spending our way to economic growth/expansion, a dirty thought in the world of Republicans and also the right one.

Getting down and dirty, lets take a look back in America’s history and 1956. President Dwight D. Eisenhower championed and authorized the Federal Aid Highway Act the largest public works project ever in the United States. The Inter-State system of roads which  has a total length exceeding 47,000 miles is largely responsible (if not solely) into making the United States the worlds largest economy. The costs of this massive project have been paid by a combination of gasoline taxes, general fund receipts, bonds, and other taxes ( gas taxes account for 70% of bill). Construction of our Inter-State Highway system took 35 years to complete and in this time we have also financed repairs as well. President Eisenhower’s roads plan was driven by economics but also defense, moving troops and military equipment across the nation quickly and efficiently was also important to Eisenhower.

We often hear “we must invest in America’s future” and this statement takes us in many directions with much debate and little action. America would not have grown into the world’s largest economy without investment and we will not grow without it. America’s great expansion model can today be seen in China’s growth and how they are investing in their infrastructure. Rebuilding America and creating jobs in mass can only come from the Federal Government. Improvements to our highway system can again be a large part of this. Over the long-term, other benefits achieved would be a reduction in congestion (reduced pollution), improved gas mileage and lower transportation costs.  Would that also impact the costs of our goods moved across the nation? It would also have a positive impact on our gas consumption!

Washington needs a history lesson and specifically the lesson that can be learned from President Eisenhower’s plan to investment in America. We also should state another obvious from this plan, JOBS equate to TAX REVENUE another political dirty word and hot potato. 

 

 

Buckle your dogs! New Jersey police to crack down and issue fines

pic: defenderofthemiddleclass.com

The radio and newspaper coverage in New Jersey has been clear, if you have rover in your car you better seatbelt him in. The campaign to inform motorists has been going on now for roughly a week and over that time I have changed the way I feel about the reinforcement of an existing law.

My initial thought was probably what many thought, New Jersey is at it again looking to collect $$$$ for their coffers, in this case $250.00 fine for a violation. That was until after I had heard a radio spot on KYW 1060. The interview piece had someone from the state discussing the law and more important was the description he gave. Your dog is in the car unsecured and you get into an accident and that dog becomes a projectile. Potentially leaving the car, injuring others and killing your pet. Does anyone consider this when transporting a pet? Obviously no, if  New Jersey is coming out with a campaign to educate people prior to cracking down. Changing a view totally by one 20 second news piece is very unusual for me and I am sure many. Could my initial thought have something to do with collecting fines? Sure it could, but in the end following the law is better for your pet and wallet. CATS TOO, they are to be transported in a carrier. Finally!!! something good’s going on in JERSEY!