Tuesday, October 7, 2008

Obama's Economy- Socialist or ?

Enact a Windfall Profits Tax to Provide a $1,000 Emergency Energy Rebate to American Families:
Why is this tax being considered? It ammounts to taking the legal profits away from companies that had no expectation that they would be denied or even be compelled to pay a tax for making a wise business choice. Instead their profits will now be devoted to providing a $1000 a year public entitlement.

Provide $50 billion to Jumpstart the Economy and Prevent 1 Million Americans from Losing Their Jobs:
This would create a $1 billion fund for each state to essentially provide funds for government public works. Instead of promoting fiscal responsibility at the state level due to budget balancing, Obama instead intends to use the Federal government's ability to create debt funded payments to provide social programs which would otherwise not be funded or would be funded at the level each state's economy is capable of funding.

Provide Middle Class Americans Tax Relief

Under his plan 37 million people will cease to pay any income taxes. And additionally create a tax system where banking records and transaction records will be centralized to an extent where taxpayers will receive individualized pre filled out tax forms. If the taxpayer has formerly filled 1040 long forms with extensive itemized deductions and economic exchanges that include depreciation, small business sole proprietorships, or charitable deductions they will essentially red flag themselves for audits if they choose to fill out the tax forms with their own data. It is very interesting that the people most likely to file such returns are also more likely to be Republican. It also is interesting that Obama's plans for the tax code as pertains to individuals will most likely benefit low income Democrats. Manipulating the tax code to benefit primarily those who back you at the ballot is suspect.

Fight for Fair Trade:
Since when is fair trade with other nation states defined by placing the worker in the trading partner's own economy as most important? A trade agreement is about removing artificial barriers to free and open markets. Further, since when is a trade agreement based upon artificial restrictions on environment? Wise market choices would be those agreements which allow for another nation to realize that if it wants to sell goods to the USA consumer market, "green practices & sustainability" are the only way that they will be able to enjoy significant market penetration. The opposition to the Central American Free Trade Agreement is a strong case in point against the logic of what a trade agreement should be under their interpretation. CAFTA would indeed create a neutral tariff free economic zone with open markets. Their interpretation of what fair trade is would be more in line with a centralized planning based on social goals. Namely workers should be treated across all boarders as economically equal and protected and the resources consumed by them in the process of creating goods should be determined on grounds of ecology.

Amend the North American Free Trade Agreement:
One of the few highlights of the Clinton administration was NAFTA, and with few exceptions, its enactment has exceeded even the most pessimistic predictions on its impact to the three nations. In short it has benefitted all three nations, and in the case of the United States it has greatly increased income based upon goods, services, transport, and investments in almost all industries that come under NFTA. It is therefor puzzling as to why Obama plans to amend this treaty to prevent a supposed decline to our collective economic security. Hats off to Bill for getting this one right.
Improve Transition Assistance:
In this day and age, most human resource managers and people employed in the various state departments of labor freely advise people that two things are required of all workers in this day and age. First, all workers must realize that technology innovation will now occur at such a fast pace that almost all workers will be forced to transition between multiple jobs and skill sets in their productive lifetime. The second is that all workers should realize that continuing professional education and continuing trade skills education is a fact of life. A wise individual will realize that technology will more than likely impact their career over their lifetime and failing to keep current in terms of education applicable to their careers will make them less of an asset to any company. What they propose is a creation of a continuing education entitlement funded by and directed by the government.

End Tax Breaks for Companies that Send Jobs Overseas
This one is truly laughable in the face of the reality that we live in an increasingly globalized economy. Further, American companies that have international and multinational footprints simply cannot just employ American citizens. Consider things such as Apple, IBM, CISCO, GM, Exxon Mobile, GE, CNN, Coca Cola, Pepsi, or any other well known company that is based in the USA. Because of globalization and free trade, our companies are expanding and growing irrespective of boarders. Free Trade makes this possible, and the fact is that often the American workers find that the old jobs that get shipped away from the physical confines of the USA tend to be replaced with better jobs that require less physical labor and pay higher salaries to those who take on these new roles. To enact a trade barrier in the form of issuing federal contracts based upon the citizenship of the workers of a company will instantly put most American multinationals into the "Do Not Apply" column when it comes to attempting to bid on a contract.

Reward Companies that Support American Workers:
In a further affront to open and free trade, Obama wants to enact legislation that would subsidize a system where companies would be favored with tax breaks. All they have to do is use the tax to subsidize their employment of American citizens instead of basing their employment needs on the market conditions. All they need do is stay incorporated in America, pay a federally approved wage rate, provide a retirement package, provide healthcare, and subsidize the pay of military personnel.

There are just a few examples of what Obama proposes. And all of them are a direct form of Federalized administration of the economy to achieve social agendas.

Deploying broadband, Public-Private Business incubators, EFCA and its dropping of the secret ballot, denying a company's right to replace striking workers, low income mortgage credits beyond what is already provided to everyone, federalizing credit scoring, even fundamentally changing consumer credit are all examples of a socialist based economic plan.

There is no other way to define what he is proposing. It is indeed socialism.

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