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Democrat Steny Hoyer: unemployment checks and food stamps stimulate the economy

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Why are we in a recession? Maybe it’s because the people running the country believe that unemployment checks and welfare are better than earned paychecks for “stimulating” the economy.

Here’s CNS News to explain what Democrats are trying to achieve:

House Minority Whip Steny Hoyer (D-Md.) said Tuesday that food stamps and unemployment insurance are the two “most stimulative” things you can do for the economy.

During a pen and pad briefing with reporters on Capitol Hill, Hoyer was asked if any Democrats are “reconsidering the wisdom” of letting the Bush tax cuts expire at year’s end for the top income earners given the still struggling U.S. economy.

“I haven’t talked to any who are of that mind,” said Hoyer. “If you talk to economists, they will tell you there are two things that are the most stimulative that you can do — one’s unemployment insurance, the other’s food stamps, okay?”

“Why is that?” he said.  “Because those folks who receive those resources must spend them. And they’ll spend them almost upon receipt. Most economists with whom I talk believe that those with significant discretionary income, that that’s not the case.”

Unless action is taken by Congress, the Bush tax cuts will expire on Jan. 1, 2013.  Originally enacted in 2001 and 2003, President Barack Obama and Congress renewed the cuts for all income-brackets for two years in 2010.

[…]The Congressional Budget Office (CBO has projected that if the Bush tax cuts are allowed to expire at the end of 2012, coupled with the defense cut sequester, it will lead to a 1.3 percent contraction in GDP after Jan. 1, 2013.

If the Bush tax cuts are allowed to expire, it is expected that 710,000 people will lose their jobs. This will achieve the Democrats goal of “stimulating the economy” with higher unemployment and more food stamps. This continues the Democrat plan of increasing the record number of people on welfare and food stamps. They will pay for this “stimulus” by adding more debt to the $8 trillion they have already run up since January 2007. The debt will be paid by young people and children. The real plan behind making millions of people dependent on government is, of course, to be able to buy their votes and to control them. Democrats are the anti-freedom party. You have too much freedom when you have a job. It leads to “inequality”. If everyone received their daily bread from the government, and rode on mass transit to labor camps instead of driving in cars, and slept in identical apartments with identical furniture and identical television programs to watch, then the world would be more equal. And equality is what Democrats want most.

So what is the Republican alternative plan for the economy? To let job creating businesses keep their own money and hire people to do work. Republicans want to stop taxing and regulating job creating businesses so that people can be put back to work, and have the confidence to spend money. That’s how you stimulate the economy – we know this because it has worked for Reagan and Bush before. Obama’s approach has never worked. The Democrats have been running the show since January 2007. And that’s why we are down 5 million jobs since Steny Hoyer became the House Whip in January of 2007. This is not going to end until the Democrats are voted out.

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New Ernst and Young report: proposed tax increases will cost 710,000 jobs

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Here’s the news from The Hill:

Allowing tax rates for the country’s highest earners to rise, an idea endorsed by top Democrats, would have a dire effect on the economic recovery, according to a new report prepared for business groups that was released Tuesday.

The study from Ernst & Young found that letting tax rates for the wealthiest Americans lapse would sap $200 billion and some 700,000 jobs out of the economy, reduce wages by 1.8 percent and lead to a decrease in investment.

“These results may suggest to policy makers that allowing the top tax rates to increase comes with economic consequences,” Ernst & Young’s Robert Caroll and Gerald Prante wrote in the report for the Independent Community Bankers of America, the National Federation of Independent Business, the S Corporation Association and the U.S. Chamber of Commerce.

“Long-run output can be expected to fall, and, depending on the use of the revenues, living standards, as reflected by workers‟ real after-tax wages, may also be lower.”

Top Republicans, including House GOP leaders and committee chairmen, jumped on the Tuesday report, as they continue to battle with President Obama and Democrats over how to proceed on tax issues and the broader fiscal cliff.

Obama reiterated last week his plan to only extend the Bush-era rates for annual family incomes up to $250,000 for another year, a proposal many congressional Democrats have coalesced behind. Republicans on the Hill want to extend all current rates for a year.

The key findings are here on the House Ways and Means Committee‘s web site:

Lower wages, fewer jobs and less investment

  • Output in the long-run would fall by 1.3 percent, or $200 billion in today’s economy.
  • Employment in the long-run would fall by 0.5 percent, meaning roughly 710,000 fewer jobs in today’s economy.
  • Capital stock and investment in the long-run would fall by 1.4 percent and 2.4 percent, respectively.
  • Real after-tax wages would fall by 1.8 percent, reflecting a decline in workers’ living standards relative to what would have occurred otherwise.

Every state in the U.S. feels the impact of tax hikes

  • The report, which offers a state-by-state look at the impact on economic output and employment, finds that every state is affected negatively by the tax increases contemplated by the Obama Administration.

Ernst & Young is one of the top financial firms in the world. The report is entitled “Long-run macroeconomic impact of increasing tax rates on high-income taxpayers in 2013”.

Even though Obama has increased our debt by nearly 6 trillion in less than four years, that money hasn’t created any jobs because government is not efficient at creating jobs that last. When you take money away from people who create jobs, you lose the jobs.  Wasting money on green energy firms that go bankrupt is a great plan to pay back your campaign fundraisers, but it’s not a good plan to create jobs. Bailing out labor unions with billions of taxpayer dollars so that they can create electric cars that catch fire is not the right way to create jobs, either. That’s what the stimulus was – $800 billion dollars taken out of the hands of businesses and sent directly to Obama’s allies. We need to get the government out of our business if we want job creation.

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Quebec court orders Dunkin’ Donuts to pay $16.4 million to failed franchise owners

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Political map of Canada
Political map of Canada

ECM sent me this story about the most immoral and socialist province in Canada.

Excerpt:

Former Dunkin’ Donuts franchisees have been awarded a total of $16.4-million in damages from the company for losses suffered because of the “Tim Hortons phenomenon,” in which the donut shop saw almost all of its Quebec stores close in less than a decade as it lost market share, according to a superior court decision released Thursday.

The Quebec Superior Court ruled that Dunkin Donuts Canada Ltd. failed to protect and enhance its brand at the cost of the 21 franchisees and misled owners to get them to buy into a new strategy that ultimately failed.

“In this case, you have a very large franchisor with a successful chain and it’s facing a competitive threat by another large chain, i.e. Tim Hortons,” said Toronto-based franchise lawyer David Sterns of Sotos LLP. “And the judge’s view is that the franchisor couldn’t just cede the territory to the competitor, that it was incumbent on the franchisor to hold the ground for the system.”

There are currently 11 Dunkin’ Donuts stores left in Quebec, from a high of more than 200 in 1998.

In 2003 the franchisees launched the suit against Dunkin’ Brands — formerly Allied Domecq Retailing International Canada Ltd. — claiming they were induced under false pretenses to join a remodelling program that would boost sales by 15% in the first year and several subsequent years, which never happened.

The company also failed to live up to a promise to invest $40-million, half of which would come from franchise fees.

The lesson here for business owners and job creators is clear: never, ever start a business or expand a business in Quebec. They’re not just secular and anti-family, they’re socialist and anti-business.

Here’s an interesting post about Quebec’s fiscal situation:

Quebec’s austerity measures which include the raising of tuition fees for its post-secondary students have been headline news in Canada for the past month. In light of that, I thought that it was time to do a brief posting on Quebec’s financial situation.

Let’s start by looking at Quebec’s debt. Quebec is Canada’s second-most indebted province after Ontario and has the misfortune of having a bond credit rating that is in the lower middle of the pack, well below Alberta, Saskatchewan and British Columbia, Manitoba and below New Brunswick and Ontario at A+ (Standard and Poor’s), the same rating as Nova Scotia. This poor rating makes it more expensive for Quebec to service its debt. Quebec’s total debt in fiscal 2011 – 2012 is estimated to be $170.9 billion; this compares to Ontario’s estimated debt of $237.6 billion. Quebec’s debt nearly twice the size of all other provinces combined (excluding Ontario).

Quebec’s debt-to-GDP is estimated to be 51.2 percent in 2011 – 2012, the highest in Canada by a very wide margin with Ontario coming in second place at 37.2 percent and Nova Scotia coming in third place at 35.2 percent.

[…]If the Harper government follows through with its plans to wean Canada’s have-not provinces from the federal teat, Quebec may find it impossible to meet its fiscal goals. As well, when interest rates return to normal levels, Quebec’s expenditures on debt interest payments will become an ever-increasing portion of its overall spending. Since Quebec is already Canada’s most highly taxed regime, if the province hopes to meet its targets, it has only one choice – cut spending now.

It’s a worthless, backwards province that exists only by stealing money from hard-working provinces like Alberta and Saskatchewan. I hope Harper cuts them off – it’s not like they vote for him anyway. Let them eat grass and leaves for a few years.