Saturday, September 6, 2008

DEM Policies Harming Economy

Here's an analysis you won't here from the pathetic pawn propaganda machine. The Democratic policies are directly responsible for our higher unemployment rate. There are two reasons why Obama and the Democrats are directly responsible for our current economic ills. They are directly responsible for our rising energy costs, food costs, and higher unemployment due to a no drilling philosophy and minimum wage increases.

This Congress accomplished very little in terms of their destructive policies but they were able to block a responsible energy plan, promote ethanol as a fuel, and raise the minimum wage. By blocking a responsible energy plan Congress has allowed the costs of energy that fuels our transportation industry to almost double since 2006. This winter fuel costs to heat our homes will be 48% higher than they were last year. This means more family members will be seeking those lower minimum wage jobs that simply no longer exist.

Americans will be paying more for food because of increased use of food products going to fuel. Ethanol is a failed policy of the 1970's. It was a joke back then and nothing much has changed. Fuel economy standards are decreased by increased use of ethanol. Ethanol is inefficient as a fuel. It sounds good in lofty rhetoric because it will lower consumption of fuel required to be provided by foreign countries. However, it does very little to reduce actual expenses. The reason why? The use of foodstuffs to fuel our cars increases food prices and does very little to reduce consumption of fuel becasue it is an inefficient fuel. These costs do nothing to offset each other. It is a failed gimmick that makes environmentalists feel better about themselves. It is not based in reality only based on emotion.

The lack of drilling is creating a further dependence on imports. Imports are a drain on our economy. Promote more drilling and mandating our fuel is sold within our borders is a far more responsible plan. George Bush lifted the executive order banning offshore drilling and the price of oil has dropped by a third. Yet Obama does not see that this reduction in prices undermines his opposition position.

The higher minimum wage requirement has created higher unemployment rates. The reason for this is two fold. Small businesses can not afford rising wage costs. The easiest way to curb wage expenses is to cut jobs. Smaller business owners work longer hours while cutting labor resources. The other consequence of higher minimum wage is increased union wages. Unions are the main reason for democrats to promote higher minimum wages. What Obama will not tell you is that most union contracts tie their union wages to the minimum wage. There is usually language that states a rise in minimum wage will also raise the union wages. So now corporations are also seeing increases in direct labor costs. What happens when direct costs increase? Jobs are either cut or prices of products raise.

It is true that these Obama policies are directly responsible for the high unemployment and the drag on our economy. Obama does not have the depth of knowledge required to understand that each of his stove piped issues has unintended consequences on his other issues. He operates in a vacuum with his issues. But that is not the case. Increased direct labor costs decrease job opportunities. Increased use of ethanol does very little to decrease the cost of fuel but is directly responsible for increasing the cost of basic necessities for life. Obama's energy policy of no drilling, waiting for immature technology to develop, inflating our tires, and use of ethanol does very little to curb our dependence on foreign oil. It increases inflation, it increases energy costs, and it increases unemployment as companies curb hiring in an effort to offset other rising costs.

The July 24th increase in the minimum wage should have been delayed. We could have waited for this increase to take effect. When an economy is on the brink of recession we should not be mandating increased costs. This mandate only exasperates the problem. The time to mandate such economic drains is when the economy is growing and expanding. When an economy is contracting we need to pump money into the economy not further erode the stability. Obama and his policies are not in sync with the real problems we are facing. How many jobs were lost in August that are a direct result of increased energy costs, increased inflationary pressures, and increased direct labor costs? I would say all of them and that is why the Obama led Democratic policies are harming the economy.

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