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The 800 lb Gorilla in the Room


     Mr Obama spent his lifetime putting chains on the 800 lb gorilla in his presence. Making the powerful submit to his will was what he was about. A civil rights lawyer and community organizer who fought for the rights of the down trodden against the powerful others like police, business leaders, government that didn't champion his causes, businesses that hired and fired people for economic reasons (to remain profitable). Yah those kind of folks.

     Now Mr Obama is the 800 lb Gorilla in the room. And he doesn't appear to know how to act. Should he use brute force against any resistance? Should he use a mild persuasive approach that takes up time and energy and may not be successful? Or should he use a divisive misdirection approach and sneak stuff in before the opposition can get organized against him?

     The promise fulfilled by our founders was to make this a land of opportunity and not a land of entitlements.

     The founders knew that "necessity is the mother of invention". They knew without necessity as a stimulant there would be only stagnation and nothing would improve in their lives.

     Government isn't in business to make money. Government gets into the business of providing goods and services to pacify a population so they won't oppose government. Politicians get reelected ad infinitum; however, most of the incentive for people to improve their lot is lost.

Negative Feed Back

     When government increases taxes of the working entrepreneurs to pay for the goods and services of folks who won't risk opening a business several outcomes follow:

1. Some entrepreneurs leave town to do business where taxes are lower. And other people (their employees) loose their jobs.

2. The tax base shrinks. Taxes are raised on the entrepreneurs who remain because government's need for funds doesn't diminish, it increases.

3. The tax laws are adjusted so the politicians' supporters are rewarded for their loyalty.

4. The cycle of diminishing return is continually propagated.


"Change You Can Believe In"

     The stimulus bill (American_Recovery_and_Reinvestment_Act_of_2009) to solve the credit crisis was passed by the house and senate in a huge rush before any one at all  had time to read and evaluate it. Mr Obama allowed all of the earmarks to get past him. ("Just this one time." he said.) In the rush, only about 20% of the money was directed toward improving the credit market. The rest was social engineering that his party couldn't get passed under another administration. "Change you can believe in?" Ha.

Cap'n Trade

     The Cap'n Trade bill (American Clean Energy and Security Act)
is a tax on carbon emissions being sold to the public as a fix for "global warming". Oh, and to help pay for a Government Health Care Plan. My congressman, Hon. Rick Boucher, sent me an e-mail assuring me that my electric bill and my gasoline bill wouldn't rise very much as a result of this hidden tax. I still have my doubts.

     Ms. Pelosi advised all of us that GAO (Government Accounting Office) is always presenting worst case scenarios of what the cost of government health care would be. GAO and CBO (Congressional Budget Office) sure missed the heck out of their estimate for Social Security, Medicare and Medicaid expenses didn't they?   NOT!   They were all under estimated! Congress knows all about these unfunded obligations and they aren't doing anything to help the situation. After all it's not part of their current tax and spend agenda. This health care plan is modeled on the one in force in Massachusets. Massachusets is going broke from it. Canada's health care program uses forced rationing to contain expendatures.

     Did I mention that the Cap'n trade bill that was debated was a thousand pages. And 300 more pages were added just the night before the vote in the house? When did the house members have time to read and digest these changes? NONE! What the hey, one party has a solid majority, and it appears their members stay in line or else, so the outcome was already in the bag. Mr. Obama, when the bill comes to your desk, which unelected Czar will tell you whether to sign or not?

Who or What Will Lead Us Out of Recession

     Small business will provide 70 % to 80 % of the new jobs to bring us out of the current recession. That's what most folks tell me, even the politicians. Yet our politicians are promising to increase the taxes on the very people who must increase the tax base that these politicians need to pay for their wave of social engineering. The party in power is so tied up with the idea that business is the enemy to their constituents that they can't quite embrace the idea that improving  business' competitiveness is the only real proven way to pay for their programs.

     Tax and spend only leads to financial system failure and not prosperity. The national debt is out of hand. Didn't the credit market melt down teach our elected leaders anything?

What's Your Future?

     Today we're still the land of opportunity. Should we become a land of entitlements, Mr.Obama won't have to worry about being the 800 lb gorilla in the room. Because we won't be the world's largest economy or have the strongest military any more. We'll only have nostalgic memories of the "Kennedy Camelot" dream of what might have been.

     There is no free lunch! Somebody always pays.

     I gave my wife a plaque many years ago. It reads:

"I'd rather you did it yourself."

It's still in the kitchen by the sink. I don't think she appreciated it at the time. And still may not.  But we sure have run an efficient and solvent life style for more years than most folks have been on earth. When you grow up with the idea that debt is your enemy, you never over extend your credit but still are able to live the true "American Dream".

    We're not children any more. The cross over from entitlements to "doing it yourself" is a painful journey and impossible for the faintly motivated. Mr. Obama, stick to the "tough love" you preached to the Ghana Parliament. Government provided entitlements are counter productive to this great country you lead. Let us do it ourselves so we are all stimulated to increase the tax base to do the things we can't (but not won't) do for ourselves. Every decision has consequences.

     Dear Lord, please save us from ourselves. Amen.

     I'm Karl Kinkel

     PS: If you want a model of a great economy gone bonkers, study California, 1950 to 2009. I was stationed there a couple of times when it was still solvent.


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