It has been one year since the Obama Administration announced their so-called Recovery Summer. Predictably, this six week effort came and went without moving the needle on economy recovery and millions of Americans remain out of work. Despite all the promises of the Democrats’ $787 billion ‘stimulus’ bill, the bad economy has gotten worse, unemployment remains well above 8 percent, small businesses are reducing their payrolls, gas prices have skyrocketed, and a quarter of American mortgages are underwater. The Administration likes to tout the creation of 574,000 private-sector jobs thanks to the stimulus, but as the Richmond Times Dispatch points out today, they came at the cost of more than $1.7 million in taxpayer dollars per job.
Despite overwhelming proof that their backward policies have failed to grow the economy and get people back to work, President Obama and his party continue to refuse to produce a real plan to create jobs. In contrast, House Republicans have put forward our plan to spur economic growth and create jobs. The Plan for America’s Job Creators attacks the big challenges facing our country head-on, will manage down our debt, reduce burdens on families and businesses and take away the uncertainty and impediments in the way of job creators so that people can get back to work. As Leader Cantor has said, economic growth is not a government program. The Democrats’ rhetoric may sound good, but as we saw with “Recovery Summer” that’s all it is – rhetoric. Families and small businesses throughout this country cannot afford to wait – we need real action and real growth today.
This morning, the House Republican Conference released “28 Months Later,” a new web ad pointing out the stark reality of President Obama’s failed stimulus and mythological “recovery summer.”
Today In History: In 1885, The Statue of Liberty, a gift of friendship from the people of France to the people of the United States, arrives in New York City's harbor.
Birthdays: Rep. Marcy Kaptur, Newt Gingrich, Venus Williams, Barry Manilow, Art Bell Tomorrow: Paul McCartney
Here is what’s in today’s Ledger ...
State Of Play: VP Biden Says It’s “Probable” $4 Trillion In Savings Can Be Found
Leader Cantor: There Is More Work To Be Done In The Areas Of Health Care and Discretionary Spending. Thursday’s discussion focused on non-health mandatory spending, which accounts for about 12 percent of the federal budget. But nothing had been agreed to yet, legislators leaving the meeting emphasized. “We have more do to on that, and we’ve got more to do on the healthcare and more to do on the discretionary,” House Majority Leader Eric Cantor, R-Va., said. ABC News
- Biden: It’s Probable We Get $4 Trillion In Savings Over 10 Years. Biden expressed confidence that any deal reached by the group could clear Congress, though he said it couldn’t pass without broad bipartisan support. ... “It has to be real, there has to be a real down payment and there has to be a real path that people believe ‘Yes, it’s possible, it’s probable they’ll get at the end of 10 years $4 trillion.” Bloomberg
Growth: The Republican Pro-Growth Strategy Creates An Environment For Economic Growth
Speaker Boehner: Republicans Have Put Forward A Serious Blueprint For Private Sector Job Creation and Economic Growth. Republicans have been focused on one thing: jobs. Our new plan builds on our Pledge to America and the efforts we’ve undertaken all year to liberate our economy from the shackles of debt and big government. ... Our plan would pay down America’s debt over time by stopping Washington from spending money it doesn’t have and preventing tax hikes on families and small businesses. The House has passed a budget that would cut more than $6 trillion in government spending, spur private-sector job growth, and save Medicare for current and future retirees. Senate Democrats still haven’t passed a budget, and the president’s plan for Medicare is to let it go bankrupt. The Republican plan — reining in excessive regulations, expanding energy production, paying down our debt, fixing our tax code, and opening new markets for American-made goods — is a serious blueprint for private-sector job creation and long-term economic growth. National Review
- A Call For Pro-Growth Policies – Baker: The Best Way To Increase Economic Activity Is Through Lower Tax Rates, Less Regulation and More Free Trade. ... take a page from Ronald Reagan's playbook in 1986 and restructure our convoluted tax code by reducing loopholes and lowering marginal rates. Business responded when the Reagan administration and a Democratic House overhauled the tax system this way. It would respond again today if given the chance. But, as in 1986, any changes in 2011 must be revenue-neutral so as to avoid turning the discussions on tax reform into a heated debate over aggregate levels of taxes and expenditures. Otherwise, with a divided government, the effort will fail. ... fully embrace free trade. With the dollar at low levels, consumers in other countries have an appetite for products with a "Made in the USA" label. To encourage them, we should give more than lip service to the currently pending free trade agreements with Colombia, South Korea and Panama. The White House should stop stalling after two and a half years of inaction and send them up to Congress for a vote. ... But as President Reagan taught us, the very best way to do that is by increasing economic activity with pro-growth economic policies—lower tax rates, less regulation and more free trade. The Wall Street Journal
The Obama Economy: A Year Later, The Administration’s “Recovery Summer” Has Yet To Occur
9 Private Sector Jobs Could Have Been Created For The Cost Of 1 “Stimulus Job.” To conclude that the federal spending created more jobs than the money would have created if left in the private sector, you would have to assume that the federal government is a more efficient allocator of capital than private enterprise. ... The White House claims otherwise — that nearly 574,000 private-sector jobs have been funded with stimulus contracts. Whether the 574,000 figure is accurate is anyone's guess. ... Still, assume such mistakes are rare and the stimulus has created more than 574,000 private-sector jobs. That works out to more than $1.7 million per job. Estimates for the total cost of a private-sector job vary, and lately may have gone up thanks to factors such as Obamacare, but they don't come anywhere near that figure. Even if every private-sector job cost $200,000, that still works out to almost nine private-sector jobs that could have been created with the money D.C. has spent to create just one. ... As the French economist Frederic Bastiat pointed out more than a century and a half ago, that which goes unseen matters just as much as that which is easily seen. The White House is welcome to claim credit for the latter — so long as it also accepts the blame for the former. Richmond Times-Dispatch
- President Obama’s Stimulus and “Recovery Summer” Have Driven Up The Debt and Failed To Deliver On The Administration’s Promises. Approximately 1.5 million jobs have been lost since the “stimulus” was signed in 2009 — roughly 300,000 of them as administration officials hopped from town to town promoting the “summer of recovery.” The national unemployment rate was 9.1 percent in May — far above the 8 percent promised by the White House — and has averaged 9.5 percent throughout the Obama presidency. ... The president can call this a “bump in the road,” or blame ATMs, or joke that those “shovel ready” jobs that were promised “weren’t as shovel ready as we expected.” But there’s nothing funny about policies that keep workers on the unemployment line and drive us deeper into debt. Those aren’t the kinds of results — and this isn’t the recovery — the American people deserve. National Review
Business Berates The Administration Over Burdensome Regulation. One by one, exasperated executives stood to air their grievances on environmental regulations and stalled free-trade deals. And Daley, the former banker tasked with building ties with industry, found himself looking for the right balance between empathy and defending his boss. At one point, the room erupted in applause when Massachusetts utility executive Doug Starrett, his voice shaking with emotion, accused the administration of blocking construction on one of his facilities to protect fish, saying government “throws sand into the gears of progress.” Daley said he did not have many good answers, appearing to throw up his hands in frustration at what he called “bureaucratic stuff that’s hard to defend.” “Sometimes you can’t defend the indefensible,” he said. The Washington Post
• CEO: The Administration Needs To Step Up, We Want To See Action, Not More Platitudes. some business executives in the room said they were unimpressed by the White House’s attempts to woo industry. “We think there’s a thin facade by the administration to say the right things, but they don’t come close to doing things,” said Barney T. Bishop III, chief executive of the business group Associated Industries of Florida. He called the efforts to streamline regulations “immaterial.” “We love the platitudes, but we want to see action,” Bishop said. The Washington Post
Confidence Erodes Among U.S. Factories, Consumers. Manufacturing in the Philadelphia region unexpectedly contracted in June and Americans’ views on the economy’s outlook soured, signaling an erosion of confidence in the expansion. ... The Fed’s report corroborates data yesterday showing New York-area manufacturing shrank in June and adds to evidence the economy’s slowdown extended through the second quarter. Bloomberg
- President Obama & His Administration Choose To Protect Their Union Allies Over Promoting Job Creation. “Shovel-ready was not as shovel-ready as we expected,” observed President Obama this week, enjoying a nice chuckle about the unhappy fate of his near-$1 trillion stimulus. To be sure, Obama has also been promoting a less amusing remedy for anemic growth and high unemployment: exports. ... One obvious way to increase exports is through free-trade agreements. But unions don’t like them. ... Under the pressure of dire economic conditions and of the consequences of stiffing three valued allies, Obama appeared ready to relent — only to put up a last-minute roadblock. ... Democratic fealty to unions does not stop there. ... the idea that a company in a unionized state can thus be prohibited from expanding into right-to-work states by a partisan regulatory body is quite insane. It violates the fundamental principle in a free-market economy that companies can move and build in response to market conditions, rather than administrative fiat. It jeopardizes the economic recovery, not only targeting America’s single largest exporter in its attempt to compete with Airbus for a huge global market, but also threatening any other company that might think of expanding in any way displeasing to unions and their NLRB patrons. The Washington Post
ObamaCare Fallout: Higher Costs and Rationed Care
ObamaCare Shaping Up To Cost Much More Than Democrats Pledged and Lead To Lower Quality Care. Obamacare poses two great dangers to our nation: lower quality of care and runaway costs. It will stifle innovation and lead to rationing. But the overwhelming cost and the damage it will do to our nation’s finances at a pivotal moment in our history deserve greater scrutiny. ... The history of entitlement programs is certainly not encouraging. Congress tends to overpromise and underfund. Medicare, for example, cost nine times more in 1990 than was expected in 1965 ($109 billion, instead of the $12 billion originally estimated). We don’t believe that the federal government has gotten any better at cost estimates or resisting the temptation to expand programs. And at a time of crushing deficits, we can’t afford to be that far off again. ... If half of the 180 million workers who enjoy employer-provided care wind up in the exchanges, the annual cost of Obamacare would increase by $400 billion by 2021. If the other half eventually follows suit, and all American employees wind up in the exchanges — which we believe is a goal of Obamacare — then the annual cost of the exchanges would increase by more than $800 billion. Like Medicare in 1965, this would be more than nine times the original cost estimate of $93 billion each year ($893 billion vs. $93 billion). The Washington Post
Off The Beaten Path
County Shuts Down Kid Run Lemonade Stand Raising Money To Fight Pediatric Cancer – USA 9
GPS Fail: Bad GPS Directions Leaves Motorists Swimming Out Of Their SUV – KATU
Scientists Tout First “Self-Powered” Wireless Transmitting Nano Device – Science Daily