Obama’s Economic Plan: A for oratory & F for substance

Obama’s Economic Plan: A for oratory & F for substance

 

It is very nice to hear good oratory full of populist phrases & populist schemes with out any explanation from where the money will come from. Obama must know that at some point oratory & populist schemes has to meet ground realities. Team Obama with Congress full of economy idiots are going to bankrupt <?xml:namespace prefix = st1 />America in 4 years what the previous administrations could not do in last 40 years.

 

Obama’s over $1 trillion stimulus package along with $7-8 trillions already spent by the treasury to buy Debt Papers which can not be used even as a toilet papers from the Banks without cutting the size of the governments at all levels in all 50 states will prove a disaster for the generations to come. For the first time economics ignorant McCain who knew 3 words for Economy Bomb, Bomb & Bomb is very right in calling Obama Economic Recovery Plan a “Generational Theft”.

 

American’s have lost $8 trillion in housing, $10 trillion in Stock Market and their consumer debt stands at $14 trillion. Add up the consumer debt, national debt of over $10 trillion, over $1 trillion Stimulus and almost $8 trillion already spent to buy bad debts of Pirates & another $5-6 trillion in pipeline to rescue these Pirates in the name of saving economy; the total comes up to $40 trillion. Interest on this money is at least $1.6 trillion/annum at the rate of 4%. The total US economy is less than $14 trillion which is predicted to drop 2.5% then how Obama propose to offset $40 trillion deficit from the America Inc. balance sheet which has a current operating loss of over $1 trillion?

 

Obama by misusing his oratory skills is telling the American public through accounting tricks, fiction, trickery, misleading statements, half truths, omissions and out right lies that he will cut in half the current operating loss (deficit) of $1 trillion by next year.

 

On a very conservative estimate to cover $40 trillion deficit and $1.6 trillion/annum interest cost if every thing is done wisely it will take 7-10 years provided we cut expanses at Federal, State, County and Municipal Level as well as save more and increase the size of our economy. Obama is doing just the opposite he wants to spend more on populist schemes; money to his big Campaign donors who have bankrupted their corporations and

 to people to live in big houses which they can not afford.

 

We came to this country in Dec. 1996; for almost 4 years we had no insurance, no car and for over a year lived in a small room of a run down motel after that for more than 3 years lived in a 2 room apartment and now we live in 4 Bed room house and drive luxury cars and now work more than 160 hours from 120 in 2001. During our tough time we never looked for any state, federal, city or Church assistance for our family’s survival. We are still making our Mortgage and health insurance Payments despite property Tax going up to $16500 from $7800 & Health Insurance $1723 from $462 in 2001. The only good thing we have noticed is Politicians financier the CEO of Health Company’s carry home income has gone up from $8 mil in 2001 to $32 mil in 2008.

 

Obama reminds me of my cousin in India who in early 1990’s was given a brand new retail business with an investment of over Rs. 10 mil by his rich father. He grounded that business to Zero in flat 2 years with a debt of another Rs. 2.5 mil. His philosophy was very simple once you have a sale of Rs. 1000 order a lavish lunch for your self and your friends from an expansive restaurant costing Rs.200-300 and in the evening get the best liquor and food for another Rs.300-400 if you have done another Rs. 1000 in sales after lunch time. He never paid any attention that on Rs.1000 sale his effective profit margin is less than 10%. That is exactly Obama is doing spending money on his friends and constituents which is not there without paying any attention to earnings of America Inc. Obama is certainly going to bankrupt America may be in less than 4 years because he has inherited America Inc. which is certainly bigger than my cousin’s company.

 

The honest solution to present crisis is we must reduce the size of the government at all levels to cut down spending.  We must learn how to live with in our means. We must stop thinking that Housing, Healthcare and higher Education is our right; we must earn it. Let’s start with New Jersey a state in 8,000 sq miles for 8.5 million people with 588 Governments feeding to 9,000 Elected officials & 400,000 employees. Think of the legacy cost for the 588 governments ruling NJ, staggering billions of dollars. All of this can be cut by putting no more than 30 governments with less than 150,000 employees & less than 1,000 elected officials. Take this mantra to every town, municipality and state of America; cut the size of the government at all levels, cut down expanses on things which we can not afford, stop giving charity to foreign counties like Israel & Pakistan who are using it for state sponsored terrorism.  

 

Dave Makkar

www.citizensfordemocracynj.org