Thursday, December 22, 2011

Apparently We Can Wait (for Jobs)



It appears that the Obama push for jobs has ended since his bus tour of the Fall. He opposed a provision to force a quicker decision by the Administration on the Keystone Pipeline XL project (that could create about 100,000 jobs) being included in the year-end bill to extend the payroll tax cut. He even suggested that he would veto the whole bill if the pipeline project of the TransCanada company were to be included in the bill ..... during a recent press conference with the Prime Minister of Canada standing next to him!

As the calendar turned closer to the end of the year and the payroll tax cut seemed to be in jeopardy of expiring on New Year's Day, the Senate agreed to keep the pipeline project in its bill, as it was in the House passed bill. The usual end of the year political bickering then ensued over which bill should be passed before New Year's Eve, but the dispute was focused on the length of time that the tax cut should be extended. The Republican controlled House passed a full year extension of the tax cut, as Obama had asked for, but the Democratic controlled Senate only extended the tax cut for two months. which would allow the Democrats to renew their partisan attacks over how to pay for a full year tax cut in the new year.

But trying to deny the creation of 100,000 jobs related to the pipeline project was not the only job killing action by the Obama Administration as the year comes to a close. As Americans are preparing for Christmas gatherings and not paying much attention to the inside-the-Beltway news other than the headlines about the payroll tax cut, the Environmental Protection Agency (EPA) just issued new air pollution regulations that will force closure of at least 32 coal-fired power plants across the country that will result in lost jobs, reduction of electricity production and higher energy costs for Americans in the areas affected.

The Associated Press explained the effect of the EPA rules as follows:

"At least 32 mostly coal-fired power plants in a dozen states will be forced to shut down and 36 more might have to close because of new federal air pollution regulations, according to an Associated Press survey. Together, those plants produce enough electricity for more than 22 million households, but their demise probably won't cause homes to go dark. Tax revenue and jobs, however, will be lost, and investments in new power plants and pollution controls will probably raise electric bills." http://www.star-telegram.com/2011/12/19/3606472/new-epa-rules-expected-to-cause.html

So while the President has been making public statements almost every day about extending a tax cut that will save the average American family about $25 a week, his Administration has been taking actions that slow the creation of new jobs, cause the loss of other jobs and raise utility costs for many Americans. The tragedy is that the mainstream media buys into the White House and Democratic narrative that attacks Republican efforts at responsible government action, such as solving the tax cut issue for the whole year (not 60 days at a time) and controlling government spending while helping to create jobs and revive the economic engine that will improve Americans' lives, not add to their burdens.

Fortunately, the Congressional year ended by passing a bill that extended the payroll tax cut (albeit for only 60 days) and included a requirement that the President must make a decision within 60 days on whether to approve the Keystone Pipeline XL project. If the President does not approve the pipeline project, he must explain why it is not in the national interest to proceed with the pipeline's construction.

The new year will, therefore, begin with continued debates about how to pay for a payroll tax cut for the rest of the year after the 60 day extension expires and with the question of whether Obama really wants to create new jobs with the pipeline project or continue to favor environmentalists, who seem to have a tendency to support positions that stall economic progress and job creation. Can we wait any longer to renew the American economy?
Sphere: Related Content

Wednesday, December 7, 2011

Christmas during the Civil War

I have been coming across interesting stories and facts about the Civil War this year, which marks the beginning of the Sesquicentennial of that conflict which took place from 1861 to 1865. Here's a description of how the soldiers celebrated Christmas, the first depiction of Santa Claus in 1863 as we know the "jolly old" fellow today and how the national holiday honoring Christmas was established that I found in an e-mail from Ford's Theatre:

Civil War Digest
Civil War Christmas Traditions
How Union Soldiers Celebrated

Although Christmas was not technically a nationwide holiday during Lincoln's presidency, soldiers celebrated Christmas in a variety of ways. Union soldiers would use salt pork and hardtack to decorate Christmas trees. Many soldiers also indulged in special meals with foods such as turkey, fruits and pie. While troops were traveling, many received care packages with food, clothing and small trinkets.

The image that we equate with Santa Claus today—the long white beard, cherry-colored nose and big belly—was created by Thomas Nast for the January 3, 1863, issue of Harper's Weekly. Nast's image depicted Santa arriving at a Union camp dressed in an outfit with stars and stripes in a carriage pulled by reindeer. In 1870, Christmas became an official Federal holiday when President Ulysses S. Grant used it as a means to unite the North and South.

"Santa Claus in Camp" by Thomas Nast. Cover of "Harper's Weekly" Jan. 3, 1863. Sphere: Related Content

Monday, December 5, 2011

We Can't Wait?



President Obama has been holding town hall meetings and giving brief press conferences since September advocating his Jobs bill that was defeated in Congress. Since that defeat, the White House and Congressional Democrats have been trying to pass pieces of the Jobs bill with the President continually stating that "We Can't Wait" for Congress to act or for the next election when so many people are out of work now.

The November Unemployment Report showed a drop in the unemployment rate to 8.6% but that's after many months of 9% or higher. Furthermore, one month's report does not establish a trend, and this is the time of the year that seasonal jobs increase. So there is no assurance that the long term trend will continue to show improvement. Consequently, the President is right to be focusing attention ... at long last... on the unemployment problem as the economic downturn continues into the end of the fourth year since Lehman Brothers collapsed in 2007.

Unfortunately, we are now learning that at the start of the Obama Presidency the substantial federal funds made available by the 2009 Stimulus law were being providing to prop up public employment and state and local governments that were in deep economic trouble. Many of these public workers are now losing their jobs as government employers are cutting spending to balance their bloated budgets.

The Washington Post spelled out the effect that the end of the Stimulus funds flowing to the state and local governments has had when the October unemployment was released:

"Amid lower tax revenue due to the recession, state and local governments have cut 455,000 jobs since the beginning of 2010, almost half of them in education. Overall, the proportion of government jobs fell to 16.7 percent in October, its lowest level in three years...

During the recession of 2008 and 2009, public employers generally held steady, not slashing jobs substantially. But since then, particularly since federal stimulus dollars ran out in 2010, the losses have been persistent."

http://www.washingtonpost.com/business/economy/economy-adds-80k-jobs-in-oct-unemployment-dips-to-9percent/2011/11/04/gIQAt2ynlM_story.html

Of course, the reason that tax revenue is down is due to the continued economic decline and unemployment trends that the 2009 Stimulus failed to help reverse, as advertised by the White House and Democratically controlled Congress when the Era of Hope and Change began. The temporary and ineffective nature of that $1 trillion Stimulus program is now becoming very clear. And with government workers being added to the unemployment rolls faster than private sector workers in recent months, Obama sees an urgent need to promote his Jobs bill or any piece of it he can get Congress to enact.

In addition, the Stimulus program tried to create so-called "green jobs". That effort too has not worked very well. Green energy companies, such as the Solyndra solar panel company that received about $500 million in federal grants from the US Energy Department, have recently filed for bankruptcy. In Solyndra's case alone its bankruptcy put over 1,000 people out of work.

While there has been employment improvement in some private sector areas recently, there is one partcular area that Obama Administration actions have held back: the energy industry that actually supplies current energy needs, not the future green industries that cannot sustain themselves without federal grants. The White House recently announced a delay in making a decision about the Keystone Pipeline XL project that is actually a real "shovel ready" project that could create over 100,000 American jobs in fairly short order.

The White House delayed the decision to approve the pipeline project until after the 2012 elections due to environmental issues raised by environmental groups regarding the fragile nature of certain lands over which the pipeline would be built. The TransCanada corporation is working with the legislature of Nebraska to change the route of the pipeline to avoid some the environmental concerns. Certainly any other valid issues could also be resolved to allow this project to move forward.

As TransCanada has stated: "The U.S. $13 billion Keystone pipeline system will play an important role in linking a secure and growing supply of Canadian crude oil with the largest refining markets in the United States, significantly improving North American security supply....

TransCanada is poised to put 13,000 Americans to work to construct the pipeline - pipefitters, welders, mechanics, electricians, heavy equipment operators, among other jobs - in addition to 7,000 manufacturing jobs that would be created across the U.S. Additionally, local businesses along the pipeline route will benefit from the 118,000 spin-off jobs Keystone XL will create through increased business for local goods and service providers." http://www.transcanada.com/keystone.html

This project is good for Americans workers who need jobs, good for our national security since it helps supply oil from a reliable neighbor that is already the largest source of imported oil into the US and good for economic growth and stability. Why do we have to wait until after the 2012 election for these jobs to be created? Sphere: Related Content