Do NOT Increase the Debt Ceiling – the Tea Party Opinion

This is the views of the Tea Party. Grover Norquist has successfully convinced many conservative congressmen to sign on to this position. My view is there needs to be a compromise.

It’s hard to believe how poorly we are educated about our nation. ABC News and the Associated Press both report our lack of knowledge about our country. It’s no surprise. Recently both Congresswoman Michele Bachmann and former Alaska Governor Sarah Palin recited incorrect information about America’s history.

Eighth Grade Sample Questions

1. Who was Thomas Jefferson and why was he important?

Refer to the passage below for questions 2 and 3:

“We hold these truths to be self-evident: That all men are created equal; that they are endowed by their Creator with certain unalienable rights; that among these are life, liberty, and the pursuit of happiness. That, to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed; that, whenever any form of government becomes destructive of these ends, it is the right of the people to alter or to abolish it, and to institute a new government. —1776

2. The quotation is from the:

A) Articles of Confederation B) Constitution C) Declaration of Independence D) Missouri Compromise

3. The primary author of the document was:

A) George Washington B) John Marshall C) Robert E. Lee D) Thomas Jefferson

4. What were the three main countries that made up the Axis powers in World War II?

A) Germany, Russia and Japan B) Italy, Japan and Russia C) Germany, Japan and Italy D) Germany, Japan and Great Britain

12th Grade Sample Questions

1. A consequence of Prohibition was

A) the failure of the Republicans in the 1928 presidential election B) the growth of organized crime C) the turning of public attention to pressing international issues D) widespread popular support for further moral reform

2. North Korea was helped by this ally during the Korean War:

A) Japan B) The Philippines C) Hong Kong D) China

3. President Franklin D. Roosevelt’s goal in supporting the Lend-Lease Act of 1941 was to

A) Encourage Japanese Americans to relocate voluntarily B) Use foreign investment as a way of stimulating the American economy C) Maintain an isolationist stance by providing only limited aid to both sides of the European conflict D) Assist Britain’s war effort without violating United States neutrality laws

4. Before the Vietnam War, the Vietnamese broke free from this colonizer:

A) Britain B) China C) France D) Russia

5. What main factors contributed to the growth of suburbs?

A) Increases in automobile ownership B) The building of a modern highway system C) Tax deductions for mortgage interest D) All of the above

6. In the 1970’s the United States economy was directly affected by

A) a sharp increase in the price of oil B) an increase in the cost of solar energy C) an overall decline in international trade D) a rapid decline in prices of consumer goods

7. The North Atlantic Treaty Organization (NATO) and the Warsaw Pact are best described as two

A) Organizations founded by the European Economic Community to promote trade between Europe and the United States B) Treaties negotiated between the allies and the Central Powers at Versailles after the First World War C)Bodies established by the United Nations to promote peace within multiethnic European countries such as Czechoslovakia and Yugoslavia D) Military organizations made up, respectively, of the United States and its allies and the Soviet Union and its allies during the Cold War

Answer Key

8th Grader Questions:

1. Thomas Jefferson was the third U.S. president and was the main author of the Declaration of Independence.

2. C

3. D

4. C

12th Grader Questions:

1. B

2. D

3. D

4. C

5. D

6. A

7. D

American Recessions are Nothing New

When Barack Obama was inaugurated president the unemployment rate was 7.8%. That was January 20th, 2009. Subsequently the unemployment rate rose to 10.1% in October 2009. Since then it dropped to 8.8% in March of this year but has now risen to 9.1%. That was a bit of a roller coaster.

Despite the federal government’s best efforts the unemployment rate rose from 3.2% in 1929 to 23.6% in 1932. It never dropped below 14% until 1942 when WWII was in process. The massive expenditures of the war proved that Keynesian theory does work but the cost is astronomical.

On “John King, USA” on Thursday, Richard Quest said he was looking for a low increase in jobs of 90,000 to 120,000. That number is twice the BLS reported increase of 54,000 new jobs.

Friday evening: “CBS Evening News,” Harry Smith (lead story): “Tonight, too much firing, not enough hiring: The economic recovery hits a detour. But the president says it would have been a lot worse without the auto bailout” … “NBC Nightly News,” Brian Williams (second story after John Edwards): “Hitting home: Americans are feeling it every day. And tonight, new evidence is out on the economy stalling out” …ABC’s “World News,” George Stephanopoulos, filling in for Diane Sawyer, (second story after Edwards): “Surprisingly bad unemployment numbers fuel new worries about the economy: Is the recovery in reverse?” “John King, USA” started with an interview of Chrystia Freeland, of Reuters and Dr. Peter Morici, Professor at the R.H. Smith School of Business at the University of Maryland, with both of them agreeing that the focus in Washington should be on jobs but it’s on debt reduction.

While Mitt Romney is correct in saying, “He can’t keep blaming George Bush”, neither he nor any other politician has offered a coherent plan to revise the economy and bring back jobs.

The history of recessions and panics in this country goes back to 1797. That first panic is listed as one of the 13 worst in America’s history.

Our economic system appears to have an inherent flaw. Despite Ben Bernanke’s study of the Great Depression, he does not know how to avoid recessions and does not know how to speed a recovery any more than anyone else. No doubt, eventually this recession will end. We just don’t know when.

Wanted: An American President Who Focuses on the Economy

As President Obama spoke to “the Mother of Parliaments” at Westminster Hall in theU.K. I couldn’t help but notice that his recent focus has been on foreign affairs. This first link is the words that appear on the White House website when you Google the words “president Obama’s recent agenda.”

Using those same Googled words I was reminded by USA Today that he recently paid a visit to Latin America in March. Then it was “We Got Him” followed by a speech explaining his policies regarding the Middle East and North Africa. Now he has followed this with a visit to Europe.

So where was time spent on the American economy? This morning’s news on-line briefing advised me that More people applied for unemployment benefits. It’s accurate. I track it and there were 10,000 more claims this week than last for a total of 424,000 this week.

Then I Goggled “new laws that will create more jobs in America” and this pops up:

· PolitiFact Wisconsin | State Sen. Rich Zipperer says deregulation …

http://www.politifact.com / wisconsin / statements / 2011 / may / 23 / rich-zipperer / state-sen-rich-zipperer- / – 35k – similar pages

May 23, 2011… The new law could create 50000 jobs, according to a study cited by state … A key result was that 7 percent more people signed up for … Yet another jobs yardstick is found in a 2010 study by the Communication Workers of America, … admit they do not know how many jobs the new law will create, …

· Economy | Change.gov: The Obama-Biden Transition Team

http://change.gov/agenda/economy_agenda/ – 56k – similar pages

May 25, 2011… Immediate Action to Create Good Jobs in America … The tax credit will benefit all companies creating net new jobs, even those struggling to make a profit. … The typical non-elderly household saw its income decline by more than ….. Obama and Biden will create an exemption in bankruptcy law for …

· GOP: New Anti-Abortion Laws Will Create Jobs « Feminism « William …

http://www.williamkwolfrum.com / 2011 / 03 / 22 / gop-new-anti-abortion-la / – 29k – similar pages

Mar 22, 2011… GOP: New Anti-Abortion Laws Will Create Jobs … we can’t keep a hanger in stock these days,” said Jim Thompson, lead lobbyist with Coat Hanger America Industries. … “We’ll take care of it. We need more employees, tho. …

· GOP: New Anti-Abortion & Anti-Women Laws Will Create Jobs | dagblog

http://dagblog.com / health / gop-new-anti-abortion-an… – 64k – similar pages

Mar 22, 2011… GOP: New Anti-Abortion & Anti-Women Laws Will Create Jobs … a hanger in stock these days,” said Jim Thompson, lead lobbyist with Coat Hanger America Industries. … “We’ll take care of it. We need more employees, tho. …

· Chairman Bono Mack Outlines Jobs Agenda to President

http://bono.house.gov/News/DocumentSingle.aspx?DocumentID=221483 – 23k – similar pages

The U.S. Constitution, the supreme law of our land, is only 4618 words … companies that create new jobs and keep those jobs here in America. … These reckless new rules will unfairly punish American businesses and lead

If Barack Obama continues to focus on foreign affairs it will take One Competent GOP candidate, that does not express extreme ideas, to easily win the presidency in November 2012.

Government Nationalizing Business

If your company does business with the government does the government have a say in how it is operated or where you locate operations?

“Living wages,” now adopted by over 50 local governments, require employers that have some financial interaction with the local government to pay covered employees a living wage that is significantly above the federal or state minimum wage.

The National Labor Relations Board (NLRB) filed a complaint recently over Boeing’s plans to open a second plant in South Carolina, a “right-to-work” state, instead of expanding its operations in Puget Sound, Washington, where its workers are unionized. The new South Carolina facility is for the production of the company’s 787 Dreamliner plane.

Boeing’s Washington workers belong to the International Association of Machinists and Aerospace Workers (IAM). The IAM went on strike four times since 1989, costing Boeing at least $1.8 billion in revenue. The new plant in South Carolina would be a non-union facility.

The government agency decided nearly two years after the fact that Boeing’s actions were retaliation for the IAM’s repeated shut downs of commercial aircraft production, including a strike lasting almost 60 days costing billions.

There might be another reason for Boeing’s decision to re-locate to South Carolina. The cost of labor. In Washington the median hourly pay for Production Operations is $16.56. In South Carolina the median hourly pay for the same category is $14.49. When you are employing thousands of people, that $2.07 difference per hour adds up to a significant savings. These numbers are from the Bureau of Labor Statistics.

According to Boeing’s financial reports, 37% of its “Earnings from Operations” were from Military aircraft. Like General Motors, Boeing relies on the United States government for support. Of course they have the right to direct Boeing operations. Or do they? Is this another case of creeping government control of everything? Wasn’t that the system used in the U.S.S.R.? As I recall it failed.

The President’s Debt Reduction Speech

The president’s (read the transcript here> debt reduction speech was both good and bad. He told us he would stand up to the Republicans and refuse to sign legislation that would end Medicare. He told us that slightly higher taxes for the very wealthy would not harm them or the country and he was correct. Then he wandered into a wilderness that included “the Vice President will begin regular meetings with leaders in both parties with the aim of reaching a final agreement on a plan to reduce the deficit by the end of June.”

What happened to the National Commission on Fiscal Responsibility and Reform (also called Bowles-Simpson). That was a Presidential Commission created in 2010 by President Barack Obama to identify “…policies to improve the fiscal situation in the medium term and to achieve fiscal sustainability over the long run.” The commission first met on April 27, 2010. A report was released on December 1, 2010, but failed a vote on December 3 with 11 of 18 votes in favor, with a supermajority of 14 votes needed to formally endorse the blueprint.

Do we really need another group to study the issues? At the very least Bowles-Simpson was headed by two highly respected former government leaders. It’s not that Joe Biden is not respected but he is the current Democratic Vice President.

If the Joe Biden committee delivers real reform by reaching compromise with Republicans than the effort will be worthwhile but is that likely? Not in the present environment.

Comparing the Rich to the Poor

The median American family income in 2009 was $49,777, not statistically different from the 2008 median according to the U.S. Census Bureau. (Arithmetic Median Definition: Median is the middle value of the given numbers or distribution in their ascending order.) The U.S. Census Bureau also reports that 43.6 million people in 2009 were defined as being in poverty.

However over 1% of the population has earnings of more than $250,000 per year. That is more than 3 million people. The GOP obtained extension of Bush income tax cuts for that group. Even worse is capital gains are taxed at 15% while salaries are taxed on a graduated tax scale. Thus a family earning taxable income of $212,300 – $379,150 is in the 33% tax bracket.

Representative Paul Ryan is the Un-Robin Hood.

GOP Long Term Budget Plan

Let’s be honest. Seniors would have a very difficult time finding health insurance if there was no Medicare. After all the age group of 65 plus are the group most likely to need health care. Just go to any medical center and you see far more seniors there than any other age group. I doubt that will change in 2022.

Still there must be some money to be made because every year I receive solicitations from every provider trying to encourage my enrollment in their plan.

The solution is non-profit health care for everyone. Call it socialized medicine if you wish but the wealthiest nation in the world provides limited health care for its poorest citizens while other industrialized countries provide health care for every citizen.

Key points of the GOP plan as summarized in the Los Angeles Times. The primary focus of savings is health care. There is no cap on the fees that health insurance providers charge.

Overall savings: Would provide about $6 trillion more in savings than the president’s budget over the next 10 years.

Medicare: In 2022, Medicare would become a “premium support program,” ending open-ended payment of doctor bills and health costs for seniors. The· government would begin paying a set amount of money to insurers. Beneficiaries would select from a list of subsidized health plans. People now 55 or older would remain in the current Medicare plan.

Medicaid: The program would be turned over to the states using a block-grant system, and $771 billion would be cut from Medicaid over the next decade.

Taxes: Individual and corporate top rates would be reduced from the current 35% to 25%. Tax loopholes would be closed and tax brackets consolidated.

Health insurance: Would do away with the president’s healthcare law and provide a refundable tax credit – $2,300 for individuals and $5,700 for families – that would allow individuals to buy coverage in any state, as well as portability.

Budget process: Would establish an overall spending limit as a percentage of the gross domestic product and require the president’s budget and the Congressional Budget Office to make annual projections.

Sources: Reuters, Rep. Paul D. Ryan

Drill Baby Drill!!

What ever happened to “Drill Baby Drill”?

John Hofmeister, founder and CEO of the non-profit group Citizens for AFFordable Energy and former CEO of Shell Oil, keeps sounding the alarm but no one seems to be listening. As recently as February 24 he appeared on Parker Spitzer saying what he has said before. In addition he said we have plenty of oil within the United States; we just don’t want to deal with the messy business of extraction.

John Hofmeister on FBN “Varney & Company” 2/28/2011
The price of gasoline continues to rise. So what is the Obama administration doing about it? What should it do? Listen to John Hofmeister’s comments on this and likelihood of $4 a gallon gasoline this year.

The AP reported today “Oil prices climbed Tuesday as Iran clamped down on anti-government protesters and unrest in the Middle East threatened to keep energy prices high for months to come.”

What will it take to change our objections to utilizing our own resources? Perhaps the answer is gasoline at $5.00 per gallon.

Category: Government