Recovery Lagging for Middle Class

-By Warner Todd Huston

So much for Obama being the “President of the middle class”…

According to the Census Bureau, income for the middle class fell 8 percent to its lowest level since 1995. “The New York Times” severely understates the case saying that this “poses a challenge” for Barack Obama as he vies for a second term
According to the report, middle class income has fallen to a national average of $50,054 annually, close to what it was back in 1995. The Times finds this troublesome for the President.

That drop poses a political challenge for President Obama as he presents himself as a champion of the middle class and defends his economic stewardship in a tightly fought presidential race. The Republican presidential candidate, Mitt Romney, is likely to seize on the decline as evidence of the president’s failure to fix an ailing economy. Mr. Obama, for his part, has emphasized the potentially damaging effects of Republican policies on the middle class.

Revealing a lopsided recovery, the same Census Bureau report does note that the top 5 percent of households have seen some recovery of lost income even as they “took a whack in the recession.”

The Obama administration points to these statistics claiming that the “rich” need to be taxed more. But others disagree.
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Recovery Lagging for Middle Class”


EXCLUSIVE: Illinois Voters Can Help Stop The Coming Taxmageddon

-By Warner Todd Huston

Attention Illinois voters: call your congressman and tell him that you want to stop the President’s tax hike on small businesses so they can help begin to turn this disastrous economy around. And as voters we should also press those vying to upset sitting congressmen on this question, too.

Sometime this week the House of Representatives will be voting on H.R. 8, the Job Protection and Recession Prevention Act of 2012. This bill is intended to stop things like Obama’s time bomb of a 4.3 trillion tax hike over 10 years, well-known as Taxmageddon.

We can do something about this in the Land of Lincoln. As the American Action Network notes, Illinois residents need to tell Illinois liberals in Congress to let small businesses “compete for the gold.”
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EXCLUSIVE: Illinois Voters Can Help Stop The Coming Taxmageddon”


Rep. Mike Kelly’s Fantastic Speech on House Floor

-By Warner Todd Huston

“So, do you want know the price of regulations? You want to talk about creating jobs in America? …Take the heavy boot off the throat of America’s jobs creators and let them breathe!” — Mike Kelly, Representative of Pennsylvania’s 3rd Congressional District

On Friday, July 27, Rep. Mike Kelly (R, Penn.) took to the floor of the House of Representatives to slam Washington’s business as usual, red tape attacks on the American business sector.

Obama’s regulations are killing this country.

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Rep. Mike Kelly’s Fantastic Speech on House Floor”


Obama Did THIS On His Own!

Obama wants us all to feed into his collectivist nonsense regarding personal achievement, but what about the negative impact government has on us?

Behold the results of Obamanomics.


In Portland, Maine, President Obama’s re-election headquarters is on the second floor of a two story brick building. The first floor is home to a furniture and flooring store.

But not for long.

This speaks more than a thousand words. Obama, above it all, while the businessman loses everything.

Image from obamadidthisonhisown.com/.


June Young Adult Unemployment at 12.8 Percent, Signaling More Delayed Dreams and Stalled Careers for Millennials

-By Generation Opportunity

Generation Opportunity encourages young Americans to call White House and demand an end to policies that stifle job creation, hiring, and opportunity

Washington, DC – (7/9/12) – Generation Opportunity, one of the largest grassroots organizations connecting with young Americans through advanced social media outreach and traditional, boots-on-the-ground organizing, is releasing today the non-seasonally adjusted (NSA) 18-29 unemployment rate data for June:

  • The youth unemployment rate for 18-29 year olds specifically (NSA) for June 2012 is 12.8 percent.
  • The declining labor participation rate has created an additional 1.735 million young adults that are not counted as “unemployed” by BLS because they are not in the labor force, meaning that those young people have given up looking for work due to the lack of jobs.
  • If the labor force participation rate were factored into the overall 18-29 youth unemployment calculation, the actual 18-29-unemployment rate would rise to 16.8 percent (NSA).

Generation Opportunity President Paul T. Conway, former Chief of Staff for the United States Department of Labor and the United States Office of Personnel Management (OPM), responds to the June 2012 jobs numbers:

“For young Americans, through no fault of their own, their story is one of few opportunities, delayed dreams, and stalled careers. Today’s unemployment numbers tell the story of millions of young Americans who are paying the price for the failed policies coming out of Washington that have inhibited economic opportunity and job creation.
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June Young Adult Unemployment at 12.8 Percent, Signaling More Delayed Dreams and Stalled Careers for Millennials”


Obama Has Lied to Us For Years About Jobs Reports!

-By Warner Todd Huston

Once again we get a dismal jobs number from our government. So few jobs were created that we aren’t even keeping up with population growth! And once again Obama tells us not to pay any attention to those numbers.


Pay no attention to the man behind that curtain!

What is it they say in Obama’s world? Tell a lie loud enough and long enough and it becomes fact? This must be the President’s mantra at least where it concerns the importance of the dismal jobs numbers we’ve seen over the last four years. OIW notes that over the last 41 months of stagnant employment numbers hovering near 8 percent Obama has told us not to pay any attention to those bad jobs reports over and over and over again.

Like the perpetually frightened Wizard of Oz, Obama uses his bully pulpit to warn us to “pay no attention to the jobs report behind that curtain.”

After all the billions he spent on “stimulus”, just look at the lies, won’t you? (These all from the White House website, too)

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Obama Has Lied to Us For Years About Jobs Reports!”


Help Stop The High Cost of Federal Regulations

-By Warner Todd Huston

(Reposting this because the House is voting on this bill today…)

One of the reasons that our economic recovery has been so slow is that the Obama administration has opened a continuous avalanche of regulations affecting jobs, hampering businesses, and costing all of us billions in lost revenue, taxation, and waste. But there is a bill in the House called the REINS Act that could help tamp down this avalanche, save us all money, help bring back the creation of jobs that aren’t being created now.

The full name of the act is the Regulations from the Executive in Need of Scrutiny Act and that is a pretty straight forward name for the legislation as its premise is that regulatory agencies are so out of control and the costs they impose on the people have become so onerous that Congress has to step in and place limits on this untrammeled power. (H.R. 10 and the Senate’s similar bill S. 299)
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Help Stop The High Cost of Federal Regulations”


With the Economy Down, Obama Looks to Help Big Labor Make it Worse

-By Warner Todd Huston

With this week’s Chapter 11 bankruptcy filing of American Airlines, we again see the results of unions having a hand in destroying American businesses. We also saw GM laid low by union demands costing Americans billions in bailouts. But despite these lessons of the recalcitrance of Big Labor forcing even worse calamities on our jobs climate in this dismal economy, Obama is about to make matters worse by using his powers to regulate to further harm both our business sector and our economy.

Obama likes to stand before the American people and claim that he wants to “help” the business sector. He claims that his crony capitalism is meant to “save” those businesses that are “too big to fail.” But while he stands before the microphones and pretends at being interested in capitalism, he wields his powers to regulate like a club with which to beat down the business sector.

Obama’s latest move — among dozens in the last three years — is to have a regulatory board he controls to issue new rules which would make it harder on business owners to prepare themselves and inform their employees on what it might mean to unionize their workplace.
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With the Economy Down, Obama Looks to Help Big Labor Make it Worse”


Illinois CAT Dealer: Illinois’ Worst Business Climate Getting Worse

-By Warner Todd Huston

On Wednesday I attended a “government day” event at Patten Industries, a 78-year-old Illinois Caterpillar dealer situated in Elmhurst, a northwest suburb of Chicago. The event, led by current General Manager Garrett Patten, featured a discussion on the severely unfavorable business climate in Illinois and why the state is lagging so horribly behind the leading economic indicators of every surrounding state.

Patten Industries has been guided by four generations of Pattens, the company having been founded by B. C. Patten, Sr. in 1933. But Illinois has not been good to the company or its employees over the last decade or so. Unfortunately, the company has gone from employing some 700 employees in 2006 to only about 400 today due to the harsh economic climate in the Land of Lincoln.

This contraction is most certainly not something the Patten family wanted to see happen to their long-standing Illinois-based company. Patten Industries has faced a whole host of negative forces causing them to scale downward. And Patten is just one of many Illinois businesses facing the same problems — problems faced in much less severity by businesses in other nearby states.

Even as many corporations are just starting to see an upturn in their fortunes, Illinois government has set up so many hurdles to growth that other states are either taking our customers or even welcoming Illinois businesses themselves as new residents.

Garrett Patten says that at least three major problems face Illinois businesses. Workman’s comp, labor unions, and corporate taxes.
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Illinois CAT Dealer: Illinois’ Worst Business Climate Getting Worse”


Rancho Cordova Blast Fine Too Low to Assure Future Public Safety

-By Warner Todd Huston

In 2008 a pipeline operated by Pacific Gas & Electric exploded destroying several homes and killing 72-year-old Wilbert Paana. Since that time authorities have been attempting to determine what sort of fines PG&E should face for its negligence. Recently administrative law judge John Wong proposed that a fine of $38 million — and an end to the whole matter — would be enough. But is this enough to assure the protection and safety of California’s ratepayers?

To his credit, Judge Wong rejected an even lower proposal of a $26 million fine noting that if found guilty the utility would face at least a $97 million if found guilty of all the charges and safety violations leveled against it. Yet, he’s willing to let PG&E get away with less than half of what it could face were it to go the distance in the courts.

Whatever is fair or not, though, one thing must be noted. PG&E’s board recently rewarded CEO Peter Darbee with a $35 million severance package even though he presided over multiple violations of safety including that Rancho Cordova incident that took the life of Mr. Panna, not to mention eight more deaths in the San Bruno incident. He also headed up the utility as it wasted $46 million on the ballot initiative Prop 16 which was an attempt to enshrine in law PG&E’s California monopoly.
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Rancho Cordova Blast Fine Too Low to Assure Future Public Safety”


Contact Super Committee: REAL Debt Reduction MUST Include Entitlement Reform

-By Warner Todd Huston

American Action Network has created a Facebook application to help you contact the liberal members of the Super Committee to urge them to include entitlement reform in the budget negotiations now going on in Washington.

American Action Network’s effort to put pressure on super committee liberals to include entitlement reform in the debt deal can be seen at their new Contact the Super Committee Facebook Page.

This allows users to tweet, Facebook and email the super committee liberals with the messaging, “Real debt reduction must include entitlement reform! Do not play politics with our children’s future.”
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Contact Super Committee: REAL Debt Reduction MUST Include Entitlement Reform”


Death By Regulations: Has Obama Lost Senator Blanche Lincoln?

-By Warner Todd Huston

Last year for the 2010 midterms Arkansas Senator Blanche Lincoln was in trouble with her reelection. Up until 2010 most felt her seat was a safe one but Democrat challengers pushed the sitting Senator to a runoff that she barely won. 55% of her constituents opposed her.

Lincoln welcomed the support of President Obama who cut an early ad for the Senator portraying her as a “populist crusader.” Still, Lincoln lost her her reelection bid to Republican John Boozman.

Obama may have come to Lincoln’s aide in 2010, but it doesn’t look like Blanche is returning the favor in 2012. Lincoln is leading a charge against the Obama administration’s regulatory orgy by taking the chairmanship of a new group called Small Businesses for Sensible Regulation.
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Death By Regulations: Has Obama Lost Senator Blanche Lincoln?”


New York Billboard Campaign: ‘Congress Must Cut $1.5 Trillion’

-By Warner Todd Huston

Bankrupting America has started a new billboard campaign in both New York City and Washington DC urging the so-called “Super Committee” to cut $1.5 trillion from the federal budget this November.

As the supercommittee continues to meet behind closed doors, it’s important they remember what is at stake. Millions of Americans sit out of work, cost of living is rising, and uncertainty continues to hamstring a recovery. They must keep in mind that they’re not working in a vacuum. The policies enacted within the halls of Congress send ripples throughout the country and the world.

So we decided to place some high-profile reminders for the the members of the supercommittee – that Americans are still watching. We placed billboards in Times Square in New York City and in Washington D.C. telling the supercommittee we remember your promises of fiscal responsibility and commitment to place the federal government’s spending back on a sustainable path.

Keep your promise. Check out the billboards below.

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New York Billboard Campaign: ‘Congress Must Cut $1.5 Trillion’”


Ballot Measure Boondoggle – High Speed Rail Costs Balloon to $100 Billion

By Steve Maggi

Nearly $100 billion. That’s what High Speed Rail is now going to cost California taxpayers – more than double the costs initially promised by the proponents of Prop 1A, which contained the initial taxpayer financing for the project.

2033. That’s when the HSR project is now expected to be completed – 13 years after it was initially supposed to be completed.

So, in the three short years since voters were sold this bill of goods, the costs have gone up $50+ billion and the time to complete the project has doubled. How could that be? Maybe the cost of labor has skyrocketed, despite unemployment being in double digits? Or maybe the cost of purchasing land for the tracks has dramatically increased, despite the real estate market being down? Or – just maybe – the special interests that pushed High Speed Rail didn’t give voters all the facts when they sold this program in 2008.
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Ballot Measure Boondoggle – High Speed Rail Costs Balloon to $100 Billion”


Obama’s Regulations So Far Cost Us $84.8 Billion And Climbing Weekly

-By Warner Todd Huston

There is a lot of talk about the high cost of regulations (in fact, a lot of talk from me about them). But how do you put a number on that cost? Well Sam Batkins of the American Action Forum has been keeping a running tab not only on the high cost of the regulations themselves but also the man hours it takes Americans to implement them and the cost is staggering.

Every Friday Batkins reviews that week’s new regulatory onslaught, makes his calculations and thus far Obama’s regulatory juggernaut is costing Americans $84.8 billion bucks. But that isn’t the last of what it will cost Americans. In order to implement these regulations, to make sure business and individuals are following the rules, it will cost Americans 88.2 million annual man hours to do the paperwork, file the reports, and follow the Internet-based reporting procedures in order to satisfy the rules.

Imagine this burden of worker’s time wasted just to make sure we follow regulations! It is obscene.
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Obama’s Regulations So Far Cost Us $84.8 Billion And Climbing Weekly”


$200 Million of Calif. Taxpayer’s Money Spent With No Accountability

-By Stephen Kruiser
Voter-Approved First 5 LA Program Spends $200 Million of Taxpayers Money without Oversight

As the Los Angeles Times reports, a recent independent audit of the First 5 LA Commission revealed massive problems with the agency, including lack of accountability, spending oversight or competitive bidding. First 5 LA is part of a statewide program created in 1998 by Prop 10, a measure which was supposed to use funds from a tobacco tax to promote health and education of young children. According to the audit, it’s not exactly fulfilling its mission. From the Times:

An audit by Harvey M. Rose of San Francisco found First 5 LA’s commission was unable to monitor money that was being spent “since monthly programmatic expenditures are not presented relative to a budget.” Auditors also concluded the agency was overstaffed while under-spending on programs for children.

So, First 5 LA is spending too much on public employees and not enough on kids. Not to mention doling out $200 million without a competitive bidding process and operating with such a lack of oversight that there’s no way to determine if the agency has signed agreements “for inappropriate purposes or with unqualified vendors or grantees”. Sounds like standard operating procedure in California, which has seen similar accountability and oversight problems with other initiative-created agencies as well.

And yet, former pro Tem and career politician Don Perata is pushing another measure – the so-called California Cancer Research Act – to create yet another unaccountable bureaucracy with six political appointees that can spend nearly a billion each year, including millions on staff salaries and pensions and overhead. With huge budget problems and public pension costs spiraling out of control, the last thing California needs is another big-spending bureaucracy with no oversight or accountability.

The measure is slated for the June 2012 ballot in California.


Saving the American Idea: Rejecting Fear, Envy and the Politics of Division

This week, Representative Paul Ryan (R, Wisc.) made an important speech at the Heritage Foundation.

Full Text

Thank you so much, Ed, for that kind introduction.

We’re here today to explore the American Idea, and I can’t think of a better venue for this topic. The mission of the Heritage Foundation is to promote the principles of free enterprise, limited government, individual freedom, traditional American values, and a strong national defense.

These are the principles that define the American Idea. And this mission has never been timelier, because these principles are very much under threat from policies here in Washington.
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Saving the American Idea: Rejecting Fear, Envy and the Politics of Division”


Business Roundtable: Regulations Are Killing Business

-By Warner Todd Huston

On Friday I attended an informative business roundtable meeting of Chicago-area small businessmen who came together to discuss how government intervention and its avalanche of regulations are killing jobs and businesses not only in Illinois, but nation wide. Some of the stories were chilling, to say the least. These trials go to show how anti-business the most famously capitalist country in the world has become. No wonder we can’t get out of this second great depression!

The event was held at the headquarters of The Rabine Group in Schaumburg, Illinois. The Rabine Group is a group of nationwide companies that specializes in driveway paving, roofing, and other contracting work. The company is headed by owner and CEO Gary Rabine.

Filling out the panel was Moderator, Brian Kelly of Bulk Lift International; Gary Rabine, The Rabine Group; Garrett Patten, Patten Industries; Randy Truckenbrodt, Randall Industries, Inc, and Former State Senator Steve Rauschenberger, Rauschenberger Partners.

The panel began with some of the regulatory horror stories experienced by the panel. Each story illustrated how government stands in the way of job creation, small business, and expansion, and how government is not working hand-in-hand with small business but actually fosters an inimical relationship. The panel showed how the oppressiveness of these regulations actually tempts business to break laws just to be able to carry on with business.
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Business Roundtable: Regulations Are Killing Business”


Obama: Transparency? Who Needs it?

-By Warner Todd Huston

In another breach of trust between President Obama and the American people, Obama has once again broken a promise to change the business-as-usual habits of Washington. As a candidate and early in his presidency Obama claimed he’d bring an unprecedented transparency to Washington. But now it looks as though he’s OKayed his agencies to lie about the records they hold.

Obama’s Justice Dept. floated a proposal that if records sought by Freedom of Information Act (FOIA) Requests are exempt from the eyes of the American people, why, they should be able lie and pretend such records don’t even exist.

This has transparency watchdogs a bit miffed, to say the least. Both the ACLU and Citizens for Responsibility and Ethics in Washington (CREW) issued a press release decrying the situation. Obama’s move threatens to “destroy integrity in government,” they say.
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Obama: Transparency? Who Needs it?”


The Rise of the Obamavilles

Remember back in the 30s when disgruntled WWI veterans and homeless Americans created shanty towns called “Hoovervilles“? They felt failed by an uncaring president in Herbert Hoover.

Well, with the Occupy-Whatevers have they created “Obamavilles”?

I’d say they have.


President Continues to Play Politics With the Economy

The GOP Senate’s video this week is about the bipartisan opposition to President Obama’s most recent stimulus proposal (#Stimulus2). Senate Republicans believe Congress should follow the bipartisan path it recently pursued when it passed the Colombia, South Korea, and Panama free trade agreements (#TradeMeansJobs) and focus on passing other measures that will free businesses to grow and create jobs.


Another California Tax Hike to Fund a Boondoggle Program

-By Warner Todd Huston

As a result of years of budget deficits and wasteful spending by the state legislature, California faces difficult budget challenges for the next ten years. This bad news is courtesy of a recent analysis of the state’s long-term debt obligations by state Treasurer Bill Lockyer (Download .pdf of Lockyer’s Report). The analysis adds to a growing list of bad fiscal news for California, a state already struggling under the nation’s worst credit rating not to mention suffering the highest unemployment in the country at 12%.

Even as California deals with this financial crisis, a career politician is pushing a ballot measure that would raise taxes by nearly $1 billion — but doesn’t allocate one penny to balance the state budget, pay down its debt, or to fund existing critical programs like education and public safety. This measure, the so-called California Cancer Research Act, would mandate a new bureaucracy with six political appointees that can spend tax money on buildings and salaries and benefits. This includes $16 million spent on overhead and $117 million on new buildings and facilities. These are no one-time expenditures as such spending will continue year after year.

The Golden State is already on the verge of bankruptcy, to be sure, and California can’t afford this kind of spending right now. Californians should expect their legislature to fix the deepening budget deficit and fund existing programs before starting new costly spending programs like this.
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Another California Tax Hike to Fund a Boondoggle Program”


Government Kills… Businesses, Anyway

-By Warner Todd Huston

A small business named Nice Cream found that government wasn’t very nice to its bottom line. In fact, due to its heavy hand, government froze the company into nonexistence. So much for everyone loving ice cream!

The other day, while discussing the failures of government unions and their pliant, paid-for, lapdog politicians, one of my Publius commenters said that government should “stick to its guns” and turn a blind eye to the needs of the business sector. This commenter wanted government to continue sticking it to the business sector and maintained that business would simply stand there and take it because of the “value they receive” from government. I said that business did react to a bad business climate fostered by government regulations, taxation, and interference. He didn’t think so.

Well, here is a story of how one small business was crushed, not by the market but by government. It was crushed because of government “sticking to its guns” and slamming it with idiotic regulations and rules made for multi-billion dollar corporations that did not make sense for small business.
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Government Kills… Businesses, Anyway”


VIDEO: EPA Regulations Jeopardize IL Manufacturing Jobs

From the Republican Study Committee…

The Republican Study Committee today released a new AmericanJobCreators.com video – “Voices of Recovery: Eric’s Story” – highlighting the cost of federal government regulations on Bensenville, Illinois job creator Chicago White Metal Die Casting (CWM). A privately held family small business since 1937, CWM is struggling to remain competitive under the burden of new U.S. Environmental Protection Agency (EPA) regulations which restrict energy use at manufacturing facilities.

In business for nearly 75 years, CWM supports about 250 jobs, but faces growing challenges from mounting Washington rules and regulations.
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VIDEO: EPA Regulations Jeopardize IL Manufacturing Jobs”


How Obama Is Bypassing Democracy, Congress and YOU

-By Warner Todd Huston

Phil Kerpen has a warning for you, America. He wants to alert you to the fact that Barack Obama is using his powers to create regulations to undermine Congress, ignore voters, and “radically transform America.” But Kerpen also has some good news. There’s a way to stop this left-wing assault on our country. You can find out what that something is in his new book, Democracy Denied: How Obama is Ignoring You and Bypassing Congress to Radically Transform America — and How to Stop Him.

For this book — his first if I am not mistaken — Kerpen, the Vice President for Policy at Americans for Prosperity, has decided no less than to save the Republic. Of course, it’s an uphill battle to beat back the war that has been launched against America for sure.

Why is it an uphill battle? Because the way our country is being torn down is happening in the most subtle way possible. Worse, it is all being done with such ersatz legality, a legitimacy so seemingly ironclad, that most Americans are completely unaware of what is happening. And when they are aware of it they imagine there is nothing wrong with it all.
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How Obama Is Bypassing Democracy, Congress and YOU”