Today, the President will visit Holland, Michigan to push for higher fuel efficiency standards. While the goal of promoting more fuel efficient vehicles is laudable, such costly new regulations will only create more obstacles to growth and make it harder for working families and small businesses. With 10.5% unemployment in the Great Lakes State, the President should explain to people of Michigan how his calls for tax increases and new regulations will create jobs or spur economic growth. Instead of hiking taxes and spending money we don’t have, we need to focus on policies that will demonstrate that America is open for business and will allow the private sector to expand, get our economy back on track and help get people back to work.
Today In History: In 1973, the nostalgic teenage coming-of-age movie American Graffiti, directed and co-written by George Lucas, opens in theaters across the United States. Set in California in the summer of 1962, American Graffiti was nominated for five Academy Awards, including Best Director and Best Picture, and helped launch the big-screen careers of Richard Dreyfuss and Harrison Ford, as well as the former child actor and future Oscar-winning filmmaker Ron Howard.
Birthdays: Rep Billy Long, Hulk Hogan, Joe Rogan, Will Friedle and Amber Brkich
Here is what’s in today’s Ledger ...
State Of Play: Another Trillion Dollar Deficit Demonstrates The Need To Cut Spending
It’s A Spending Problem – This Year’s Trillion Dollar Deficit Is Predicted Exceed Last Year’s. The US budget deficit has topped $1 trillion for a third straight year, underlying the pressure Congress and the White House face to make more progress on a long-term plan to shrink the imbalance. The Treasury Department said yesterday that the deficit through July totaled $1.1 trillion. Three years ago, that would have been a record high for the full year. This year’s deficit is on pace to exceed last year’s imbalance of $1.29 trillion. The Associated Press
- President Obama’s Refusal To End His Spending Spree Led To America’s Unprecedented Downgrade. President Obama followed the traditional Democrat approach of increasing spending, increasing government handouts and increasing taxes. When government spending was recognized as reaching a crescendo, President Obama upped the ante, handing out hundreds of billions in the form of stimulus, bailouts and overreaching government programs. Eventually lenders and analysts decided that Obama's uber-spending was breaking the bank. The government was addicted to debt. Despite signals that spending needed to be cut and our national debt reduced, Obama refused and this unfortunate precedence of downgrading occurred. The Detroit News
Leader Cantor: Republicans Were Not Elected To Take More Money Out Of The Pockets Of Hard Working American Families. "The new Republican majority was elected to change the way Washington does business," Cantor told his colleagues. "We were not elected to raise taxes or take more money out of the pockets of hard working families and business people." CNN Money
The Road Ahead: The Solution To The Nation’s Debt and Jobs Crises Is Economic Growth
Meltzer: The Focus Must Be On How To Create Long-Term Growth – Not More Short-Term Stimulus. Some will read this as heartless disregard of the unemployed. It is, instead, based on an analysis of the problems we face and what is required for a transition that puts us back on our historic growth path with good wages resulting from higher productivity. Short-term stimulus will not get us there. Even if some stimulus could raise the near-term growth rate to double or triple the 0.8% of the first half of this year, it will reduce the unemployment rate very little. The president is wrong to pose the issue as more taxes for millionaires to pay for more redistribution now. That path leads to future crises because higher taxes support the low productivity growth of the welfare state, delay the transition to export-led growth, and do not reduce future budget liabilities enough. The central issue facing the U.S. is whether we turn away from unsustainable budget and trade deficits toward an economy that grows at historic rates with low inflation. More redistribution now won't do that. More investment and productivity growth now will, and it will also provide more resources to pay for a greater share of future health-care costs at lower tax rates. The Wall Street Journal
How To Create An Environment For Long-Term Growth
- Reducing corporate tax rates permanently to encourage investment (paid for by closing loopholes).
- Agreeing on long-term reductions in entitlement spending.
- A five-year moratorium on new regulations affecting energy, environment, health and finance.
- An explicit inflation target between zero and 2% to force the Fed to pay more attention to the medium term and to increase public confidence that we will not experience runaway inflation.
The Obama Economy: Despite Bipartisan Congressional Support, Declining Exports, and A Rising Trade Deficit, President Obama Continues To Stall Job-Creating Free Trade Agreements
Sen. Thune: By Not Submitting The Columbia, Panama and South Korea FTA’s To Congress, President Obama Is Preventing Job Creation. For the president to hold trade opportunities hostage to a demand backed by his union base leaves us with nothing but missed opportunities. Meanwhile, it keeps U.S. employers from expanding their businesses in a way that could lead to more jobs for the workers that the administration claims it wants to help. On a level playing field, where our products do not face higher tariffs than imports from other countries, U.S. businesses thrive. Under the Panama agreement, American grain exports are estimated to increase by more than 60 percent, and automobile exports would go up by 43 percent. Exports to Colombia would increase by almost 14 percent overall, including large increases in machinery, chemical products and agricultural goods. Exports to South Korea would jump by 25 percent or more as tariffs on U.S. products are eliminated.... Obama should submit the trade agreements for consideration immediately. Congress should then approve them as the first order of business in September — before America loses even more business opportunities to the EU, Canada and others. Politico
- While President Obama Withholds The Trade Agreements – Trade Deficit Hits Its Highest Level Since October 2008, Exports Decline The Most Since January 2009. The U.S. trade deficit unexpectedly increased in June to the highest level since October 2008 as a slump in exports exceeded a decline in shipments from overseas. The gap widened 4.4 percent to $53.1 billion from $50.8 billion in the prior month, Commerce Department figures showed today in Washington. The deficit exceeded all estimates in a Bloomberg News survey of economists in which the median was $48 billion. Exports declined the most since January 2009. Bloomberg
Liberal Watchdogs Call For Sen. Murray To Stop Fundraising, Cite Her Position As A DSCC Chair As A Major Conflict Of Interest. A coalition of liberal groups is calling on Sen. Patty Murray (D-Wash.), chairwoman of the Democratic Senatorial Campaign Committee, to stop all fundraising while serving on the debt-reduction “supercommittee.” If Murray does not pledge to stop her fundraising activity for the reelection efforts of Senate Democrats, she should step down as DSCC chairwoman, some say. “It really sends a bad message to the American people when you’re the chief fundraiser trying to come up with this balanced approach to deficit reduction,” said Adam Smith, communications director of Public Campaign. “She’s going to be focused on this committee and also on fundraising? Will she make decisions based on whether it hurts the fundraising ability of the [DSCC]? “She should step down or say ‘I’m not going to raise any money,’” Smith said. ... Public Campaign and other left-leaning government watchdog groups that want to reduce the influence of special interests have released a letter calling on members of the supercommittee to stop fundraising. “We believe this position as co-chair of the supercommittee is so important that there can’t be any suggestion at all that any of these members are under the influence of special interests,” said David Elliot, communications director for USAction, which signed the letter. ... Twenty-five groups signed the letter. The Hill
- Dem Strategist: No Doubt Sen. Murray Will Be Serving Two Masters. Democratic Sen. Patty Murray is under scrutiny from Republicans, watchdog groups and even some liberal activists as she sits atop the powerful deficit reduction “super committee,” while she plans to raise millions of dollars running the campaign arm for Senate Democrats. ... “It puts her in a position where she is going to be serving two masters, really,” said Joe Newman, communications director for the Project on Government Oversight. “One is the public interest, but she’s also going to be very involved in trying to woo some of these big donors.” Politico
Off The Beaten Path
@DayspringFacts ... Learn Them, Live Them, Love Them
Bear + Monopoly = Game Over
Mysterious Roadkill Spawns All Kinds Of Theories – Grand Folks Herald
From London To Sydney In Less Than An Hour – The Guardian