President’s First State of the Nation Speech – 2011

by Jack Lee

President Obama said creating jobs must be the nation’s number one focus. Fair enough. . . then government needs to get out of the way and let America get back to work.

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As the most taxed people in the world, we’ve got an uphill struggle against the competition. Taxation and over-regulation is like a huge weight we’re forced to drag around the race track. Every day fedup businesses are moving jobs to some other country. Fact is we don’t make anything here anymore, if we can avoid it. Big government has made it too difficult. The motivation to take risks as entrepreneurs is undercut by the depth of our bureaucracy with all its assessments, fees, taxes, studies, permits, EPA hoops, DOT hoops, and other heavy handed federal oversight regulating ag to industry, drilling to developing, mining to medicine – it’s overwhelming progress and this is a far greater threat to our survival than Al Qaeda ever could be.

President Obama has acknowledged that Americans are “hurting,” which is hard to ignore when real unemployment is likely around 14% and the advertised unemployment is around 10%. It’s obvious to the unemployed that his election pledge of change has not materialized. He’s done nothing to curb a bloated, top heavy government. If anything, he’s added to it with his healthcare reform and the highly controversial big bank, big corporation, bail-out policies.

A proposed 5 year spending freeze from 2011 on would save us over $550B and that’s a start to reducing the monstrously large deficit which is expected to add another 1.5 trillion dollars by the end of this year.

Bob McDonnell, the governor of Virginia summed it up like this, he said the federal government was “simply trying to do too much” to help us.

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8 Responses to President’s First State of the Nation Speech – 2011

  1. Tina says:

    Insight into the thinking behind Obamas fixes for jobs and our economic woes come from his new advisor, GE CEO Jeffrey Inmelt:

    http://online.wsj.com/article/SB10001424052748704698004576104172158318768.html?mod=WSJ_Opinion_LEADTop

    Mr. Immelt inherited the time bomb that was GE Capital and it is probably too much to have expected him to defuse it before the panic hit. Most other finance CEOs and everyone in government also misjudged the mania. Yet without federal loan guarantees for debt issuance, among other government aid during the crisis, GE Capital might well have taken the entire company down.

    Along with Mr. Obama, Mr. Immelt is now preaching the virtues of U.S. manufacturing and innovation. A glance at the GE homepage invites readers to “watch the rebirth of rails,” of all things. GE also wants to produce more in the U.S., even though its domestic employment fell by about 34,000 from 2000 to 2009. These are laudable intentions.

    Less laudable is Mr. Immelt’s habit of inviting government to be his business partner and promoter. In his 2008 letter to shareholders, the CEO declared that the financial crisis and election of Mr. Obama meant that the U.S. economy had been fundamentally “reset.”

    His key line: “The interaction between government and business will change forever. In a reset economy, the government will be a regulator; and also an industry policy champion, a financier, and a key partner.”

    This is an invitation to the same kind of capital misallocation that led to the housing bubble. Mr. Immelt’s particular goal is to promote policies and subsidies that aid green energy, in which GE is deeply invested. But if wind turbines are a good business, they will find a market on their own. If wind power turns out to be an uncompetitive bust, then the government will have misallocated hundreds of billions more dollars that could have found more productive uses.

    Democrats and their partners in the corporate world do not get it. Government has no business being in the middle of business.

  2. Post Scripts says:

    Good comment Tina and I agree with Jeff too. However, I have to give credit where credit is due. Obama is one heck of a good speech giver. He is poised, slick, confident and says what people want to hear…for the most part. He sounds very moderate. But, you know the old saying watch what they do not what they say.

  3. Chris says:

    “As the most taxed people in the world”

    I didn’t know we were living in Denmark.

    Sorry, I know you had bigger points to make, but it’s kind of hard to focus on them when you start off with such a massive, obvious lie.

  4. Toby says:

    As a guy at the bottom looking up, I can see a really good case for calling the United States the most taxed Country. I consider a tax being any money I pay to the local, state or federal government. I also consider any “service charges” or “fee’s” paid to anyone a tax. Look at your phone bill and your PG&E bill, you will understand what I mean. We have a lot of people in this Country who can ignore charges like this and just pay them. I am not one of those people, wish I were.
    I feel that this is a reasonable point of view. I am looking forward to how others see it. All you have to do is stop and think of all the money you spend and get nothing for it. All those 1/4% and 1/2% and the nickels, dimes, quarters, pretty soon your talking big money.
    Hell, look at parking meters. Your paying to park on a street that your tax dollars pay to build and fix so what are you paying for?

  5. Post Scripts says:

    When you stop to add up all little taxes we got, just like you said Toby, we have one huge tax burden. On tires for example you pay sales, then you pay excise tax on top of the sales tax.

    A fee is just another tax. We have so many hidden taxes it’s staggering when you add them all up.

  6. Tina says:

    I agree Jack, the President is an accomplished speaker, although at times his rythms grate on me. It makes his presentation seem trite even if it is not. (I approach this from a singers POV)

    I didn’t think this was a very good speech, certainly not exceptional in any way. it was like the writers took a bunch of earlier speeches and cut and pasted them together. The response from the audience was lukewarm for the most part. Although there isn’t a lot to cheer about right now there was an opportunity to propose something dynamic that would inspire people to go out and make things happen. He failed in this regard but then, I didn’t expect any more than we got.

    I’d just like to take a moment here say THANK YOU to all of the TPers and everyone else who made it possible for us to make so many gains both in Congress and around the country in state houses and governorships.

  7. Chris says:

    I get it, you guys think we pay too much in taxes. You may have a case there, but that doesn’t lead to the conclusion that we are “the most taxed people in the world.” In order to conclude that, you’d have to look at, you know, other people in other parts of the world, which neither of you did in your responses.

    According to this website, we are the 12th most taxed nation in the world.

    http://www.businessinsider.com/oppressive-tax-nations-2009-7

  8. Tina says:

    Jack was thinking of corporate taxes, I believe.

    http://taxprof.typepad.com/taxprof_blog/2008/03/us-states-lead.html

    U.S. States Lead the World in High Corporate Tax Rates
    The Tax Foundation has released U.S. States Lead the World in High Corporate Taxes:
    Many states impose state corporate income taxes at rates above the national average of 6.6%. Iowa, for example, imposes the highest corporate tax rate of 12%, followed by Pennsylvania’s 9.99% rate and Minnesota’s 9.8% rate. When added to the federal rate, these states tax their businesses at rates far in excess of all other OECD countries. When compared to other OECD countries … 24 U.S. states have a combined corporate tax rate higher than top-ranked Japan.
    See below the fold for a table with the combined federal and state corporate tax rates for the fifty states and the thirty OECD countries (see chart)

    That was back in 2008. I dont think its changed since then. And people said Bush gave all the breaks to the big guysnot so.

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