January 31, 2010
By Herman Cain
Last week I wrote an assessment of the real State of the Union. It was based on compelling and irrefutable facts. As expected, my assessment did not match what the president said last Wednesday in his State of the Union address. The president’s address was filled with new rhetoric and old policy, more promises that had already been broken, and more Bush-bashing.
As a result, listeners did not get a sense of direction, a reassurance that we are safe, positive prospects for renewed prosperity, nor did we get a sense that we are more united as a nation. Obama supporters will say that he needs more time.
Sorry, that dog will not hunt!
We do not need another year of trying to spend our way to prosperity with more spending on government, and hardly any real incentives for businesses to start growing and hiring again. Even though the president said, “Jobs will be our number one focus in 2010”, people were left wondering, “Where’s the beef!”
We do not need to give President Obama more time to break the same promises he has already broken on transparency, pushing back on earmarks in proposed legislation, and seriously listening to other ideas.
And continuing to try and deflect all of our nation’s problems on the eight years before he took office is a really bad excuse for a serious lack of leadership.
And then things got worse.
I am not talking about the just reported growth in GDP in the fourth quarter of 2009 over the third quarter. Even though the Associated Press article described the 5.7 percent growth rate as having “boomed” at the end of 2009, you have to read way deep into the article for them to point out that the 2009 growth rate over 2008 fell by 2.4 percent overall.
I am also not talking about the new jobless claims, or the fact that the unemployment rate is still expected to hover around 10 percent, or that many analysts do not expect these latest two quarter-over-quarter growth rates to be sustained.
Things got worse when the Senate approved a 15 percent increase in the statutory debt limit from $12.4 trillion to $14.3 trillion. Although the House will also have to approve the new debt limit and the president must sign it, the likelihood of them not doing so is somewhere between zero and zero.
The new debt limit is bad news because whenever Congress raises the limit, then it is just a matter of time before they come close to it and have to raise it again. It is called runaway tsunami spending.
The new debt limit is also bad news because it represents an additional $5,000 for every man, woman and child living in this country. This is on top of the $40,000 of debt the government had already committed for each of us. Sooner or later, it will have to be repaid, or eventually the state of our union will be bankrupt. Unlike some big banks and General Motors, the USA is not too big to fail. Uncle Sam does not have a bailout sugar daddy.
More federal debt is driving down the value of our U.S. dollar, thus, reducing our spending power as consumers domestically and in the global market place.
More federal debt and the uncertainty of what the Democrat-controlled Congress will do about the existing tax rates that will expire at the end of this year keeps businesses in a state of stop. As long as that remains, the economy will remain in a state of stalled.
That’s not good for the State of the Union.
January 31, 2010
January 17, 2010
Let’s make a deal…with other people’s money
January 17, 2010
By Herman Cain
President Obama, Senate Majority Leader Harry Reid,and House Speaker Nancy Pelosi are buying votes in Congress to pass a Health Care “Deform” bill that the majority of the American people do not want. It is a dishonest and abusive use of power and taxpayer dollars.
They have gone beyond the usual practice of “earmarks” in proposed legislation to reward legislators with special dollars to send home in exchange for their votes. And they have gone beyond the typical special favors hidden in the tax code, which historically were intended to help the disadvantaged and low income families, or severely distressed segments of our economy.
I agree with provisions in our current tax code to help the poor, but I do not agree with the practice of buying votes with earmarks regardless of which side of the congressional isle they go. They should be eliminated. And the only way to eliminate the insatiable appetite for special favors in the tax code and proposed legislation is to replace the tax code with a consumption tax, the Fair Tax. But that’s a different story for a different day.
When the president and the leaders of Congress start using our tax dollars to buy votes to pass legislation for the sole purpose of enhancing their political power and control over the people, they have crossed a dangerous threshold that our Founding Fathers never imagined.
Speaker Pelosi spent just enough of our money to get a two-vote majority in the House version of the Health Care Deform bill, while Majority Leader Reid bought the votes of several senators with special deals that infuriated the public and even their fellow senators. Sen. Reid calls that compromise. As stated previously, I call it corruption.
And now for the president to extend special favors to union workers of this country over the sweat equity of non-union workers is outrageous and blatantly wrong. Proposing a tax on successful financial institutions because he does not agree with the earned bonus payouts at these institutions, while not taxing the failing government-controlled institutions is excessive government intervention.
This irresponsible use of power and our money puts freedom, liberty and fairness up for auction to the highest bidder, and a government-controlled totalitarian state in our future if we let it happen.
Excessive government and discretionary observance of the Constitution has become standard operating procedure for this president, his administration and the current Democrat-controlled Congress. Sadly, they make these infractions on the people’s rights and do not expect to be challenged.
The people are challenging them with their voices, even though they are not listening. And people will challenge them with their votes in 2010, because this time enough of the people will remember in November.
And if the president and Congress succeed in shoving their unfair and ultra liberal agenda down our throats, they will most certainly be challenged in our court system.
If the Democrats in Congress continue to hear from millions of us even as they try to craft a final version of their health care bill, we can impact that narrow two-point margin they had in the House version, and possibly cause some of the pirates in the Senate to rethink selling their votes.
One caller to my radio show tried to defend these actions by the president, Harry and Nancy according to the old adage “He who has the gold makes the rules”.
The problem is that it is our gold. It does not belong to Obama, Harry or Nancy.
By Herman Cain
President Obama, Senate Majority Leader Harry Reid,and House Speaker Nancy Pelosi are buying votes in Congress to pass a Health Care “Deform” bill that the majority of the American people do not want. It is a dishonest and abusive use of power and taxpayer dollars.
They have gone beyond the usual practice of “earmarks” in proposed legislation to reward legislators with special dollars to send home in exchange for their votes. And they have gone beyond the typical special favors hidden in the tax code, which historically were intended to help the disadvantaged and low income families, or severely distressed segments of our economy.
I agree with provisions in our current tax code to help the poor, but I do not agree with the practice of buying votes with earmarks regardless of which side of the congressional isle they go. They should be eliminated. And the only way to eliminate the insatiable appetite for special favors in the tax code and proposed legislation is to replace the tax code with a consumption tax, the Fair Tax. But that’s a different story for a different day.
When the president and the leaders of Congress start using our tax dollars to buy votes to pass legislation for the sole purpose of enhancing their political power and control over the people, they have crossed a dangerous threshold that our Founding Fathers never imagined.
Speaker Pelosi spent just enough of our money to get a two-vote majority in the House version of the Health Care Deform bill, while Majority Leader Reid bought the votes of several senators with special deals that infuriated the public and even their fellow senators. Sen. Reid calls that compromise. As stated previously, I call it corruption.
And now for the president to extend special favors to union workers of this country over the sweat equity of non-union workers is outrageous and blatantly wrong. Proposing a tax on successful financial institutions because he does not agree with the earned bonus payouts at these institutions, while not taxing the failing government-controlled institutions is excessive government intervention.
This irresponsible use of power and our money puts freedom, liberty and fairness up for auction to the highest bidder, and a government-controlled totalitarian state in our future if we let it happen.
Excessive government and discretionary observance of the Constitution has become standard operating procedure for this president, his administration and the current Democrat-controlled Congress. Sadly, they make these infractions on the people’s rights and do not expect to be challenged.
The people are challenging them with their voices, even though they are not listening. And people will challenge them with their votes in 2010, because this time enough of the people will remember in November.
And if the president and Congress succeed in shoving their unfair and ultra liberal agenda down our throats, they will most certainly be challenged in our court system.
If the Democrats in Congress continue to hear from millions of us even as they try to craft a final version of their health care bill, we can impact that narrow two-point margin they had in the House version, and possibly cause some of the pirates in the Senate to rethink selling their votes.
One caller to my radio show tried to defend these actions by the president, Harry and Nancy according to the old adage “He who has the gold makes the rules”.
The problem is that it is our gold. It does not belong to Obama, Harry or Nancy.
January 10, 2010
Time to change economic course, because that ship is not what Captain Obama thinks
January 10, 2010
By Herman Cain
Whereas I applaud the president’s speech last week admitting that government intelligence agencies did not adequately “connect the dots” to prevent the attempted Christmas Day airline terrorist attack, the next most significant news (unemployment) was glossed over by the broadcast media.
We are all pleased that the president has admonished the Department of Homeland Security and the various intelligence agencies to do their jobs, which they should have been doing in the first place. And we hope they follow through on the common sense collaboration among agencies they shared with the American people, which we thought was already happening.
It is not realistic to expect all terrorist attempts against the United States to be detected and prevented. But for no action to be taken with multiple clues about the Christmas Day attempted bomber, it is very discomforting.
Let’s be prayerful that our agencies will begin to connect the dots, faster and more frequently.
The lack of speed at which the administration responded to this attempted attack has caused some people to question the administration’s commitment to national security as our number one priority. Many more people are questioning their commitment to real solutions to our national economic challenges. The news last week that employers had shed more jobs than expected in December, and that the unemployment rate once again reached 10 percent, should have evoked more from the president than a speech about green jobs.
The economy continues to downward spiral as the administration and Congress continue to try and wish us out of a recession with ineffective spending policies, and pass control-obsessed legislation that will only make matters worse. Businesses and workers don’t need green jobs that may materialize in ten years. They need jobs in existing businesses that are hanging on for survival today. They do not need more tax credits, they need real tax cuts.
The public becomes acutely aware of national security when there is an attempted attack on us, and worse yet, when one actually succeeds.
But when people are out of work, they face it every day while looking for a job. If a business owner sees bankruptcy just around the corner, he or she does not get much sleep at night. And if a family has reached the point of begging for food then another tax credit or green job will not put food on the table.
When I wrote my October 10, 2009 commentary titled How to End the Recession in Twelve Months, the unemployment rate was 9.8 percent. It is now 10 percent. The suggestions presented in that commentary have not changed.
To repeat myself and echo the opinions of millions of other people, we can’t spend our way to prosperity! In 12 months, the administration and Congress have spent trillions of dollars we do not have. Our national debt has topped a new historic level. And yet, the economic news continues to get worse.
There’s a story about a ship at sea that came upon what it thought was another ship during the night. The captain sent a message for the other ship to change course, or they would fire upon them. After repeated messages the “other ship” politely informed the bully ship that it was not a ship, but a lighthouse, and that it would be wise for them to change course.
Our economy is positioned for a prolonged recession. Real people are feeling real economic pain. We do not need another year or three years of “let’s give it more time”. We need a new economic plan from the administration and Congress.
I hope they see the lighthouse.
By Herman Cain
Whereas I applaud the president’s speech last week admitting that government intelligence agencies did not adequately “connect the dots” to prevent the attempted Christmas Day airline terrorist attack, the next most significant news (unemployment) was glossed over by the broadcast media.
We are all pleased that the president has admonished the Department of Homeland Security and the various intelligence agencies to do their jobs, which they should have been doing in the first place. And we hope they follow through on the common sense collaboration among agencies they shared with the American people, which we thought was already happening.
It is not realistic to expect all terrorist attempts against the United States to be detected and prevented. But for no action to be taken with multiple clues about the Christmas Day attempted bomber, it is very discomforting.
Let’s be prayerful that our agencies will begin to connect the dots, faster and more frequently.
The lack of speed at which the administration responded to this attempted attack has caused some people to question the administration’s commitment to national security as our number one priority. Many more people are questioning their commitment to real solutions to our national economic challenges. The news last week that employers had shed more jobs than expected in December, and that the unemployment rate once again reached 10 percent, should have evoked more from the president than a speech about green jobs.
The economy continues to downward spiral as the administration and Congress continue to try and wish us out of a recession with ineffective spending policies, and pass control-obsessed legislation that will only make matters worse. Businesses and workers don’t need green jobs that may materialize in ten years. They need jobs in existing businesses that are hanging on for survival today. They do not need more tax credits, they need real tax cuts.
The public becomes acutely aware of national security when there is an attempted attack on us, and worse yet, when one actually succeeds.
But when people are out of work, they face it every day while looking for a job. If a business owner sees bankruptcy just around the corner, he or she does not get much sleep at night. And if a family has reached the point of begging for food then another tax credit or green job will not put food on the table.
When I wrote my October 10, 2009 commentary titled How to End the Recession in Twelve Months, the unemployment rate was 9.8 percent. It is now 10 percent. The suggestions presented in that commentary have not changed.
To repeat myself and echo the opinions of millions of other people, we can’t spend our way to prosperity! In 12 months, the administration and Congress have spent trillions of dollars we do not have. Our national debt has topped a new historic level. And yet, the economic news continues to get worse.
There’s a story about a ship at sea that came upon what it thought was another ship during the night. The captain sent a message for the other ship to change course, or they would fire upon them. After repeated messages the “other ship” politely informed the bully ship that it was not a ship, but a lighthouse, and that it would be wise for them to change course.
Our economy is positioned for a prolonged recession. Real people are feeling real economic pain. We do not need another year or three years of “let’s give it more time”. We need a new economic plan from the administration and Congress.
I hope they see the lighthouse.
January 3, 2010
Predictions for 2010: It could all go ‘right’
January 3, 2010
By Herman Cain
In my commentary last week I described how 2010 could be better than 2009. I will now be so bold as to describe what that better 2010 would look like. I know that there’s a great risk in making predictions, but I decided that my crystal ball is just as good as the next writer, and plenty of writers will be giving their predictions for 2010.
Besides, no one will be exactly right or totally wrong. So I’m in the game.
The economy will not improve in 2010. It may stabilize a bit more than in 2009, but the Obama Administration has not implemented one program that will stimulate businesses to add jobs or grow their businesses.
Thus, the unemployment rate will remain high at 9 percent or higher, and GDP growth will remain flat at best.
In fact, it is clear that the so-called $787 billion stimulus bill was just a disguised expansion of government on top of back-to-back record fiscal year deficits for 2009 and 2010, respectively. This will cause businesses to remain in a state of “stop” as they plan for 2011. They will stop hiring and stop making plans to grow.
Republicans will regain control of the House, and the Senate will be split 50 to 50.
Conservatives will be propelled into office because of the boiling resistance movement by voters against the ultra liberal agenda of the administration and the Democrat-controlled Congress. Just as it was difficult to quantify the Obama effect in the 2008 presidential election until after the fact, it is equally difficult to quantify the resistance effect on the 2010 elections.
The three biggest reasons for this resistance are the tsunami run-away federal spending, the Cap & Trade & Tax & Kill bill, and the Health Care Deform bill. Most voters know that we cannot spend our way to prosperity, and they have caught on to the scams and deceptions in both of those bills, regardless of whether they are actually signed into law or not.
The resistance movement is more than just tea party rallies and demonstrations, which the administration and the Democrats are dismissing as a bunch of fringe crazies and not representative of a real grassroots movement. I hope they continue that attitude, while a growing number of conservative organizations are getting their acts together and getting together to better inform and inspire voters.
According to an October 2009 Gallup poll, conservatives and moderates outnumber liberals two to one. Informed voters will not be snookered again with eloquent rhetoric and deceptive promises. Voters will remember in November.
Several new faces will emerge as potential presidential candidates for 2012. It is doubtful that a Democrat will challenge the eloquent one, but none of the Republican usual suspects will generate a commanding lead in early 2011 polls. Just as the resistance movement will produce unexpected results in the 2010 mid-term elections, some unexpected new household names will appear as presidential possibilities.
Some corners of the conservative universe are making noises about “throw all the bums out” or even to start a third political party. Both of these objectives are unlikely because of a lack of coordinated leadership and money. This is another area where the resistance movement is making significant headway. But please don’t tell the president, Harry or Nancy.
Just like an irrefutable law of physics, before you can stop a train you must first slow it down. I predict that the socialism express will be severely slowed in 2010. And if everything goes “right”, then we could see a derailment in 2012.
That’s not just better, that would be great!
By Herman Cain
In my commentary last week I described how 2010 could be better than 2009. I will now be so bold as to describe what that better 2010 would look like. I know that there’s a great risk in making predictions, but I decided that my crystal ball is just as good as the next writer, and plenty of writers will be giving their predictions for 2010.
Besides, no one will be exactly right or totally wrong. So I’m in the game.
The economy will not improve in 2010. It may stabilize a bit more than in 2009, but the Obama Administration has not implemented one program that will stimulate businesses to add jobs or grow their businesses.
Thus, the unemployment rate will remain high at 9 percent or higher, and GDP growth will remain flat at best.
In fact, it is clear that the so-called $787 billion stimulus bill was just a disguised expansion of government on top of back-to-back record fiscal year deficits for 2009 and 2010, respectively. This will cause businesses to remain in a state of “stop” as they plan for 2011. They will stop hiring and stop making plans to grow.
Republicans will regain control of the House, and the Senate will be split 50 to 50.
Conservatives will be propelled into office because of the boiling resistance movement by voters against the ultra liberal agenda of the administration and the Democrat-controlled Congress. Just as it was difficult to quantify the Obama effect in the 2008 presidential election until after the fact, it is equally difficult to quantify the resistance effect on the 2010 elections.
The three biggest reasons for this resistance are the tsunami run-away federal spending, the Cap & Trade & Tax & Kill bill, and the Health Care Deform bill. Most voters know that we cannot spend our way to prosperity, and they have caught on to the scams and deceptions in both of those bills, regardless of whether they are actually signed into law or not.
The resistance movement is more than just tea party rallies and demonstrations, which the administration and the Democrats are dismissing as a bunch of fringe crazies and not representative of a real grassroots movement. I hope they continue that attitude, while a growing number of conservative organizations are getting their acts together and getting together to better inform and inspire voters.
According to an October 2009 Gallup poll, conservatives and moderates outnumber liberals two to one. Informed voters will not be snookered again with eloquent rhetoric and deceptive promises. Voters will remember in November.
Several new faces will emerge as potential presidential candidates for 2012. It is doubtful that a Democrat will challenge the eloquent one, but none of the Republican usual suspects will generate a commanding lead in early 2011 polls. Just as the resistance movement will produce unexpected results in the 2010 mid-term elections, some unexpected new household names will appear as presidential possibilities.
Some corners of the conservative universe are making noises about “throw all the bums out” or even to start a third political party. Both of these objectives are unlikely because of a lack of coordinated leadership and money. This is another area where the resistance movement is making significant headway. But please don’t tell the president, Harry or Nancy.
Just like an irrefutable law of physics, before you can stop a train you must first slow it down. I predict that the socialism express will be severely slowed in 2010. And if everything goes “right”, then we could see a derailment in 2012.
That’s not just better, that would be great!
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