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Obama, Stimulus II and Small Business

During his Saturday radio address to the nation President Obama let slip his administration's real purpose for the stimulus legislation... which is to save government.

"It has already extended unemployment insurance and health insurance to those who have lost their jobs in this recession," Obama, who is traveling today in Ghana, said in his weekly Saturday radio and Web address. "It has delivered $43 billion in tax relief to American working families and business."

Were it not for the stimulus program, the president said, "state deficits would be nearly twice as large as they are now, resulting in tens of thousands of additional layoffs -- layoffs that would affect police officers, teachers, and firefighters."

Obama said the measure "was not designed to work in four months -- it was designed to work over two years."

Vice President Biden also chimed in:

"Remember, we're only 140 days into this deal," Biden said in a speech in Cincinnati. "It's supposed to take 18 months."

Balancing state budgets that are under stress is an excellent electoral strategy because it prepositions allies that can be counted on in 2012. What better way to get a state campaign operation energized than to relieve the budget pressure on the legislative and executive branches? And speaking of the two year time frame, why wasn't that leisurely pace an issue when Congress passed the stimulus bill so fast they didn't bother to read it?

So there you have it: the Obama administration bailed out state budgets first. The private sector, which actually produces income and wealth, is (optimistically) on the two year program. And who wants to bet that Stimulus II won't include another large allowance check to state and local governments? So where does that leave small business? The Obama administration is already prepping the battlefield for that debate by offering up TARP funds to be used to assist small business:

The Obama administration is developing an initiative to take money from the $700 billion rescue program for the banking system and make it available to millions of small businesses, which officials say are essential to any economic recovery because they employ so many people, according to sources familiar with the plan.
This concept is beyond stupid. Why not just give the small business a tax cut? Declare a payroll tax holiday? Either would put cash in small business' bank account today. Well, obviously those ideas won't work because they would leave the relative operating freedom of small business in tact. Better for the government to use the TARP funds to mandate what type of cars small business buys (GM and Chrysler), where they bank (TARP banks), how they should treat union organizing efforts (EFCA), energy consumption (Cap & Trade), and health care benefits (ObamaCare).

An organized political opposition to this wholesale power grab by Obama/Pelosi/Reid better coalesce soon. It's all slipping away.


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Comments (32)

oh NOW it's "supposed to ta... (Below threshold)

oh NOW it's "supposed to take 18 months"

hmmm...wasn't there some goofy graph that showed the economy already recovering under Obama's "stimulus"??

hmmm...didn't Obama and Biden and all the Dems claim that THEY had the answers for this? and that by SUMMER the economy would be recovering?

I love (not) Obama and Biden moving the goalposts!!

"So there you have it: the ... (Below threshold)
GarandFan:

"So there you have it: the Obama administration bailed out state budgets first."

Whoa! Where the hell is Sheriff Joe? This was not supposed to happen. "Stimulus" funds were NOT to be diverted by the states! They didn't move the goal posts, they've stolen money under false pretenses. So when the economy is still in the tank next year, what will be the excuse then? What ever it is, you can bet the family bank account it will NOT BE THEIR FAULT!

If they are now saying that... (Below threshold)
Mark W:

If they are now saying that the we need 2 years to see if the stimulus is working, how do they know that we need another stimulus package now?

Mark W: "If they are now sa... (Below threshold)

Mark W: "If they are now saying that the we need 2 years to see if the stimulus is working, how do they know that we need another stimulus package now?"

You DARE to question The One??

Dude, you are in some serious need of re-educating!! Remember to board the bus quickly and quietly when it arrives...you are allowed one small suitcase.

Obama's "stimulus" is a tra... (Below threshold)

Obama's "stimulus" is a train-wreck- these jobs figures are far worse than the ones the White House warned us about if we DIDN'T pass the bill- so it was passed, and then unemployment soars anyway? He said it would top-out at 8%, we give him a trillion dollars, and he and Joey Pluggs now tell us they "underestimated" as it pushes 10%?
-oh please

Instead of creating jobs, interest rates were bumped up, the dollar slid... and it didn't help anybody get any work. Much of this is due to the fact that Obama's agenda has mortified almost every machine of job-and-growth creation in the country.

The One couldn't deliver the type of "temporary, targeted, and timely" bill that he promised repeatedly, and regardless of his image in the press, Obama simply lacks the the political stature to control Pelosi and Reid... who hit the trough hard, while bickering like siblings.

And the lack of GOP co-conspirators exposed Obama politically... this legislation now looks to be a HUGE gamble. And when all this pork-n-welfare fails to generate any real economic gains, the Democrats will face a bloodbath in 2010.

One could even make the argument that Obama knows his legacy will be in tatters by 2012... so is just ramming-through as much of his far-left agenda as he can before the day comes when people cringe at the mere mention of his name... sure seems like it.

http://reaganiterepublicanresistance.blogspot.com

Mark,Your logic is s... (Below threshold)
DaveD:

Mark,
Your logic is spot on and it would be a great question for Gibbs at the next press conference. But I agree with Justrand, wear your Helen Thomas mask.

Obama is on the ball but mo... (Below threshold)
carly:

Obama is on the ball but more incentives are need for filling open jobs and creating new ones. There is a related post at http://iamsoannoyed.com/?page_id=588

This was predictable. ... (Below threshold)
ODA315:

This was predictable.

Where's our John Galt?

ODA315: "Where's our Joh... (Below threshold)

ODA315: "Where's our John Galt?"

You are...I am...Mark is...GarandFan is...ALL OF US!

I started my BeJohnGalt website for that very reason. As the Tea Parties heat up, and they ARE, I'm finding more and more people at them who resonate with the John Galt theme.

Remember, Galt's answer to the insanity was to "stop the engine of the world". Yes, Obama's doing a fine job of stopping the engine all by himself. But that's only because he then wants US to bow down to total government control in order to "earn" a scrap of food from his table, or a block of wood for our fire.

I'll die on my feet before I'll crawl to Barak!

Obama said the mea... (Below threshold)
Mac Lorry:
Obama said the measure "was not designed to work in four months -- it was designed to work over two years."

So they purposely developed a plan to prevent the economy from recovering for two years. Obama's strategy is to quickly pass healthcare reform and carbon cap and tax and then purposely lose control of the house in 2010 so that he can blame Republicans for whatever downside there is during his 2012 campaign.

Obama is on the ba... (Below threshold)
pvd:
Obama is on the ball but more incentives are need for filling open jobs and creating new ones. There is a related post at http://iamsoannoyed.com/?page_id=588

Carly, did you miss the part in the article at that post that mentioned that openings are down 36 percent from a year ago? These aren't unfilled jobs in the sense that no one can be found to fill them, just that they haven't filled them yet.

Per your stat, there is one job per six unemployed individuals, not counting those that have given up.

Also, you may have missed it but those not downsized are not working nearly as many hours and are under-employed - a number that continues to get worse.

The only reason Obama needs more incentives is to fill more patronage jobs and creating more dependents in the workplace. Job growth in the private sector is almost non-existent over the past several years with the public sector growing like a cancer.

I have another question for... (Below threshold)
Mark W:

I have another question for Obama, Pelosi, and Reid. Why will it take 2 years to know if the stimulus worked? Is it because most recessions end in 2 years or less already, or is it because 2 years will get you past the midterm elections?

Q: Why is it always 'we'll ... (Below threshold)
Yogurt:

Q: Why is it always 'we'll have to layoff cops and firefighters'
A: Because if the said we'll have to layoff hundreds of useless bureaucrats they know there would be a party.

By October, the Obami is go... (Below threshold)
Michael:

By October, the Obami is going to be the low 40's and Cap&Trade and Heath care will be dead.

Think I'll PhotoShop a SF m... (Below threshold)
GarandFan:

Think I'll PhotoShop a SF marsh mouse holding a sign saying "16.1 Million, I won!"

Maybe for the second round ... (Below threshold)
LiberalNItmare:

Maybe for the second round of stimulus, President Hopenchange can work it out so that the stimulus isnt timed to save the democrats ass during an election year.

Obama is in to redistributi... (Below threshold)
Zelsdorf Ragshaft III:

Obama is in to redistribution of wealth. Since government does not produce wealth, playing Robin Hood will not really support the poor. It will however buy votes. Question is how many people will be able to see this game for what it is? Who gets to be the Small business Czar? Will they have the power to limit profits? Will they be able to make you unionize? Will they be able to tell you what products you can or cannot make? Does selling drugs qualify for small business help?

From the official White Ho... (Below threshold)
Les Nessman:

From the official White House press release, Obama addressing leaders in Ghana this week :
" ..No business wants to invest in a place where the government skims 20 percent off the top..."

Um, only 20%?
So how much do the Dems/Obama want to tax American businesses?

(Found via Instapundit.com)

Umm, re comment # 3:<... (Below threshold)
Bruce Henry:

Umm, re comment # 3:

Obama and Biden are not calling for a second stimulus package now. So your logic is not "spot on," as DaveD claims. You are arguing with Obama against a position he has not taken.

That's not what I call "spot on" logic.

Top 20%? Ask any small busi... (Below threshold)
bobdog:

Top 20%? Ask any small business owner what the cost of payroll is. It's 43% for me, and then I get to pay income taxes on it as personal income. Without health insurance, which I leech from my wife's job.

Bruce, Obama and Biden disa... (Below threshold)
SCSIwuzzy:

Bruce, Obama and Biden disagree on whether or not they misread the situation.
Even you use the qualifier "now"

SCI, the question in # 3 wa... (Below threshold)
Bruce Henry:

SCI, the question in # 3 was, "...how do they know we need a second stimulus package now?" which DaveD said was "spot on."

Neither Obama nor Biden have called for a second stimulus package, at least not yet. IF they do, then # 3's question will be closer to "spot on."

Right now it's a straw man.

Bruce, you read minds? You... (Below threshold)
SCSIwuzzy:

Bruce, you read minds? You know which "we" # 3 is talking about? He never mentions names (and why I ignored the comment until you decided to build a strawman with it)

SCI, you read English? I cl... (Below threshold)
Bruce Henry:

SCI, you read English? I clearly wasn't addressing which "we" he was talking about, but which "they."
And by "they" he meant Obama and Biden.
And I don't think "strawman" means what you seem to think it means.

So you do read minds, eh Br... (Below threshold)
SCSIwuzzy:

So you do read minds, eh Bruce?

You assume. Maybe he meant democrats. Maybe he meant acorn. Maybe he meant the underwear gnomes. Or Reid/Pelosi/Obama.

No, SCSI, I read ENGLISH. C... (Below threshold)
Bruce Henry:

No, SCSI, I read ENGLISH. Can you?

The article, the thread, and comment # 3 all were about what Obama and Biden have been saying, not "Democrats" or "acorn" or the "underwear gnomes."

And as for "Obama/Pelosi/Reid" what have Pelosi and Reid called for? A second stimulus? If so, I missed it.

"Context." You should look it up.

Or are you being willfully disingenuous?

Angry little bugger, aren't... (Below threshold)
SCSIwuzzy:

Angry little bugger, aren't you Bruce?

I'll admit I tossed in the gnomes, but everything else came from the post.

Perhaps I need a new prescr... (Below threshold)
Bruce Henry:

Perhaps I need a new prescription, Mr Wuzzy.

Could you please point me to the part in the post that mentions "Democrats" and "acorn"?

Darned if I can find it.

Bruce Henry:<blockqu... (Below threshold)
_Mike_:

Bruce Henry:

Obama and Biden are not calling for a second stimulus package now

Correct. Any additional 'stimulus' would the the third such. (1 under Bush, 1 much larger under Obama already)

What better way to get a st... (Below threshold)

What better way to get a state campaign operation energized than to relieve the budget pressure on the legislative and executive branches?

bill shor

I believe Obama will always... (Below threshold)

I believe Obama will always want the best for the country. Great president for a great country. But he should do more moves. Good luck!

Dedicated to scientific res... (Below threshold)

Dedicated to scientific research, energy programs, school districts, contractors and Medicaid in conjunction with creating millions of new jobs, the $787 billion economic recovery package is the lunch room gossip heard throughout the country. Who is going to be eligible for the money, how does one go about bidding for it and how much would one receive are all important questions being asked by business owners.

Saratoga springs




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