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This is my effort to share my thoughts with readers about concerns facing our country today.  I believe there is a good chance my grandchildren may be the first generation in the history of this great country not to have a better standard of living than their parents. If so, our generation is to blame. The clock is running out for damage control. .

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« No Need to Contribute to Charity With President Obama | Main | Success Turns Sour »
Wednesday
Oct222008

2009 Economic Surprises

If you buy the polls, it's all but over. When President Obama takes over in 2009 there will be some surprises. Here are my calls.

First, on Energy. There is no windfall profits to tax with the crude price back down. Interest in offshore leases will be diminished. Hence, there will be no Obama energy strategy since it was all based on windfall profits taxes. Sorry, you will have to pay money to foreign governments that hate us for four more years. If and when the global economy recovers, it will be worse for us next time the crude price runs up. 

Obama will nationalize the auto industry much like Europe has done in the past. The fact that the government regulations here have caused much of the pain for the industry will prove the industry was smarter than the government. Example, all of the U.S.auto makers have fuel efficient cars they sell in other parts of the world. They can't sell them here due to minor regulatory differences. Would it not make sense to waive those now rather than give money to the car manufacturers? No. That would require government to admit to their part of the problem. Obama will run the industry but it may take a few tax dollars to offset the losses. It will dwarf Amtrak in tax subsidies.

The airline industry may be next. Remember, President Obama will tell you what's best for you and the country. No need to ask.

The European economy will be worse than ours. Strange that we are going to elect a president that wants to model us after Europe. Japan will be even worse. China will continue to grow but at a somewhat slower rate than the 12% they have experienced. 

The $500 and $1000 refundable tax credit Obama used to buy the election will come due. In 2006 220 million Americans were eligible to vote and 40% paid no taxes. This will jump to 49% with the tax credits. Plus, another 11% will pay less than the $1,000 tax credit. The plan to pay for this with tax increases for the 5% that now pay 60% of the taxes won't stretch. Thus, to pay for the votes he bought he will need to increase taxes down to $75,000. This will certainly capture a lot of college professors, media types, and small business people who believed only the 5% in brackets over $250,000 would be punished. Surprise. Surprise. There is a certain justice in this. If he tries to get it all from the 5%, history has shown that group can be very creative. They will cut back investment, spending, hiring, and even move as California and New York have found. That will wreak havoc on the overall damaged economy. 

Today's economy is much like a sewage disposal plant. It takes a lot of churning to get the bad stuff to come to the top. It's far from all there yet. As more and more surfaces between now and the crowing of the new King in January, more retirement accounts will be severely damaged, more jobs will be lost, more tax dollars will be pledged to clean the new floating material at the sewage plant. 

President Obama owes a big debt to the unions. Hence, the card check program that has passed the house will pass the senate and be signed into law. New business after new business will be unionized.This will raise the cost on domestic production and reduce exports and increase imports.

President Obama owes the environmentalists. Cap and trade will pass. It will increase every form of energy including gasoline and heating oil, plus jet fuel. Europe is trying to take it out since the economic pressure to do so is mounting. While they take it out, we will put it in. 

Day in and day out President Obama and the media will lay this at the feet of the Bush administration. 

Meanwhile, the back up at the sewage disposal plant will begin to reek. People will become more and more upset with congress and begin to refuse to breath the rancid air. 

There will be no stock market recovery until 2011 when President Obama loses the Democratic majority in congress and much of the damage done is reversed.

Reader Comments (2)

Effective immediately, I am going to implement Obama’s wealth distribution plan on anyone who thinks it’s a good and just plan. This is the only way we are going to make believers out of those who don’t have a clue and believe Obama’s plan is good for America.

This is how it’s going to work, when I go out for dinner or get my car washed or have my car parked for me or anytime it would be appropriate were I would normally give some one a tip, so after we’re done, the first thing I’ll ask them is this, are you voting for Obama and if they say yes, I will immediately implement his plan and explain it in detail so they understand it.

If they say they are voting for Obama or any other liberal who supports Obama, I will immediately reduce their tip by at least 50%. I normally give a 20% tip when out having dinner and the service is good, but from now on and if they are Obama supporters, I will reduce that tip down to 10% and will explain to them that I am going to redistribute the other 10% they worked so hard for, to someone else who does not have a job or is less fortunate as they are.

If after we’re done and they say they are voting for McCain or another Conservative candidate, I will give them 20%. I will again also tell them why I’m giving them the tip so they can spend that extra 10% as they see fit to help stimulate the economy.

If they say that they are still yet undecided or not committed and not sure who their voting for, I will explain to them that they are too stupid and don’t deserve a tip. Those who don’t take the time to decide or vote should and will get what they deserve, which is Obama’s wealth re-distribution plan.

October 23, 2008 | Unregistered CommenterKen Dozier

Ken:

Great Idea. You could expand that to the annual Christmas gifts to the mailman, paper person, etc. Since Obama is doing that for me, I plan to make zero contributions to charity for the next four years. Why should I, it's my government's job now.

Bill

October 23, 2008 | Unregistered Commenterbill robertson

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