Tag Archives: Spending

How good a job is Obama doing running car companies?

Investors Business Daily explains.

Excerpt:

President Obama’s electric car vision is off to a hot start. First the heavily subsidized Chevy Volt started catching fire. Then government-backed Fisker Automotive had to recall all its cars due to a fire hazard.

Late last month, Fisker, the electric car startup that is busy spending its $529 million in Department of Energy loans, announced a recall of its entire fleet of luxury Karmas because of a faulty battery that posed a fire risk.

The battery maker at fault — A123 Systems — is another Obama grantee, having gotten $380 million in taxpayer support to make advanced car batteries.

Fisker says it’s already fixed the problem, but this is just the latest in a series of troubles plaguing the new car company.

Although it once promised to be profitably churning out 1,200 cars a month by now, Fisker has so far sold only about 240 — at a price almost 14% higher than promised. And the more moderately priced electric sedan it says it will build in an abandoned Delaware plant is still nowhere to be seen.

Bad as this is, Fisker’s troubles are just a taste of the expensive and dangerous mess in store for car buyers should Obama succeed in forcing the industry to bend to his green dreams.

In May, a Chevy Volt caught fire three weeks after a government crash test of the car. In follow-up tests in November, a second Volt caught fire after a test crash, and a third began to smoke and emit sparks.

[…]Volt sales came in about 30% below GM’s forecast for 2011 — in a year when overall retail car sales beat industry analyst forecasts by almost 12% — earning the Volt third place on 24/7 Wall Street’s list of worst product flops of 2011.

And that’s despite the substantial tax break to Volt buyers and the hundreds of millions in grant money to its suppliers.

Obama is spending a lot of taxpayer money on his Solyndra-style boondoggles. Taking money away from employers and families and just throwing it in the trash. We are now officially over 100% debt-to-GDP. We are entering a Greece-style debt situation and this dingbat is throwing our money away on Peter Pan energy policies.

Could Obama have done better? He could learn from Canada’s success

Prime Minister Stephen Harper
Prime Minister Stephen Harper

Here’s an editorial from Investors Business Daily.

Excerpt:

Away from the low growth and high regulation of an America under Washington’s thumb, our northern neighbor is economically strong. As 2011 ends, Canada has announced yet another tax cut — and will soar even more.

The Obama administration and its economic czars have flailed about for years, baffled about how to get the U.S. economy growing.

In reality, the president need look no further than our neighbor, Canada, whose solid growth is the product of tax cuts, fiscal discipline, free trade, and energy development. That’s made Canada a roaring puma nation, while its supposedly more powerful southern neighbor stands on the outside looking in.

On Thursday, Canadian Prime Minister Stephen Harper announced that he will slash corporate taxes again on Jan. 1 in the final stage of his Economic Action Plan, dropping the federal business tax burden to just 15%.

Along with fresh tax cuts in provinces such as Alberta, total taxes for businesses in Canada will drop to 25%, one of the lowest in the G7, and below the Organization of Economic Cooperation and Development average.

“Creating jobs and growth is our top priority,” said Minister Jim Flaherty. “Through our government low-tax plan … we are continuing to send the message that Canada is open for business and the best place to invest.”

It’s not just that Canada’s conservative government favors makers over takers. Harper’s also wildly popular for shrinking government. “The Harper government has pursued a strategic objective to disembed the federal state from the lives of citizens,” wrote University of Calgary Professor Barry Cooper, in the Calgary Herald.

Harper also has made signing free trade treaties his priority. Canada now has 11 free trade pacts in force, and 14 under active negotiation — including pacts with the European Union and India, among others.

“We believe in free trade in Canada, we’re a free-trading nation. That’s the source of our strength, our quality of life, our economic strength,” Flaherty said last month.

Lastly, Canada has pursued its competitive advantage — oil. And it did so not through top-down “industrial policy,” but by getting government out of the way.

Harper has enacted market-friendly regulations to accomplish big things like the Keystone Pipeline — and urged President Obama to move forward on it or else Canada would sell its oil to China.

These policies have been well-known since the Reagan era. But in a country that’s been institutionally socialist since the 1950s, Harper’s moves represent a dramatic affirmation for free market economics.

For Canada, they’ve had big benefits.

Canada’s incomes are rising, its unemployment is two percentage points below the U.S. rate, its currency is strengthening and it boasts Triple-A or equivalent sovereign ratings across the board from the five top international ratings agencies, lowering its cost of credit.

Is it too much to ask Washington to start paying attention to the Canadian success story?

These sound principles work every time they are tried, and they have led to a transformation in Canada.

Although this article doesn’t mention it, Stephen Harper is also the most solid statesman on foreign policy issues as well.

And here’s a view from up north from Canadian journalist Brian Lilley.

Excerpt:

Prime Minister Stephen Harper has put out his own list of accomplishments for the year that just ended but here are a few of the key conservative minded actions that spring to mind for me.

  • Ending political welfare. The per-vote subsidy that made political parties lazy and unresponsive to the voters of this country and insulated them from angering their core supporters will be gone by 2015-2016. Legislation ending the subsidy has already passed but the parties are slowly being weaned off the money and will get smaller amounts each year until the subsidy is gone.
  • They saw the light of common sense and released the names of those on their wanted list of suspected foreign war criminals. These were people that officials admitted should not be in the country, had been ordered out but that were still in Canada. At first officials would only admit there was a list of suspected war criminals but not say who they were. After much pressure, common sense won the day.
  • Ending the insane rules that would see farmers from certain provinces jailed for daring to sell their wheat to the customer of their choice. The Canadian Wheat Board still exists for those that want to use its centralized system. For those that want freedom, they now have that choice.
  • While much attention has been paid to Bill C-10, the omnibus crime bill, the government has passed C-2 (the mega-trials bill), this bill will make it easier to conduct the mega-trials now associated with organized crime without infringing on the right to a fair trial.
  • While the bill to end the gun registry has not been passed yet, it has been introduced and will pass early this year.
  • Immigration. On this file the Conservatives continue to push for ever higher numbers of newcomers while keeping those skeptical of high immigration onside by cracking down on fraud, cleaning up the system and putting Canada first.

Another thought for those, often myself included, that like to say this government is not conservative enough.

Lilley also notes that electing Harper presented a national day care program (which punishes families with stay-at-home), increasing unemployment benefits (which encourages people not to work), etc.

 

Obama will ask for $1.2 trillion dollar increase in the debt limit

Obama Economic Record November 2011
Obama Economic Record November 2011

From Reuters.

Excerpt:

The White House plans to ask Congress by the end of the week for an increase in the government’s debt ceiling… according to a senior Treasury Department official on Tuesday.

The approval is expected to go through without a challenge, given that Congress is in recess until later in January and the request is in line with an agreement to keep the U.S. government funded into 2013.

The debt is projected to fall within $100 billion of the current cap by December 30, when the United States has $82 billion in interest on its debt and payments such as Social Security coming due. President Barack Obama is expected to ask for authority to increase the borrowing limit by $1.2 trillion, part of the spending authority that was negotiated between Congress and the White House this summer.

[…]The debt limit currently stands at $15.194 trillion and would increase to $16.394 trillion with the request.

And yet some people apparently think that he is doing a good job with the economy.

Perhaps this story provides a clue about why things have gone so badly:

After an hour of hiking, President Obama Monday got down to the serious business at hand, heading out to golf for the second day in his first three days of vacation. He was back on the course at Marine Corps Base Hawaii.

With this one, Obama reaches a new milestone, having gone golfing 90 times in less than three years as president. That’s about three months of golf, given that the excursions generally take about five hours – much of the useful portion of the day.

What’s more, it’s the 32nd time he’s been on the links this year, a record for the president. His 32 outings eclipses the 2010 mark of 30 and is far ahead of his 2009 tally of 28 rounds as president.

And remember, there are still five days left in the year for Obama to pad his new record, which he almost certainly will.

Along for Monday’s round were three of Obama’s Hawaii friends, Mike Ramos, Greg Orme and Bobby Titcomb. The latter, you may remember, was arrested in April in a prostitution sting.

It’s the children who are going to be paying for Obama’s spending spree. Remember, the last Republican budget was in 2007 – and the deficit then was $160 billion. Then the Democrats took over the House and the Senate and the deficit rose dramatically and is not going down in the near future.