The economy shed 131,000 jobs in July and June job creation was revised downward, according to the Labor Department.  Unemployment remains at 9.5%, not counting the millions who’ve given up looking or settled for part-time work.  Obama and the Democrats spent $862 billion to jump-start the economy and create jobs, plus another recent $26 billion to stimulate previously stimulated teachers.  Obama’s stimulus is a colossal failure.

It was doomed to fail.  It’s based on a flawed model, Demand Theory:  Americans aren’t spending and investing enough, so increase demand through government spending.  This doesn’t work, because the government can’t create wealth.  It can tax wealth away to redistribute it, or destroy it by excessive regulation and taxes.  The only place for government to get money is the private sector.  Less money in the private sector makes it harder to create jobs.

High unemployment and debt were also the result of FDR’s New Deal.  Elected in 1932, FDR doubled federal spending by 1940.  From 1934 to 1940, median unemployment was 17%.  During the 1930’s, unemployment was never below 14%.

Exactly how are our stimulus dollars being spent?  We spent $555,000 to replace windows at a closed visitor’s center at Mt. St. Helens and a whopping $62 million on a tunnel in Pittsburgh that Democrat Gov. Ed Rendell called “a tragic mistake.”  This is stimulating, but not in a good way.

But wait, the worst may be yet to come.  Massive tax increases loom for 2011, leaving even less for private-sector job creation.  Everyone’s personal income tax is scheduled to rise about 3%.  The capital gains tax will rise from 15% to 20%.  Dividend taxes will rise from 15% to 39.6%.  The smart money saw this coming.  Corporations and small business trimmed expenses and took profits in 2010 to take advantage of lower taxes.  This likely inflated growth numbers and made the economy look better than it was.

How do we fix this mess?  The answers are found in history and common sense.  History shows us two presidents who quickly turned around bad economies, Harding and Reagan.  Common sense tells us if you want economic growth and jobs, make it cheaper to create them.  To do this, cut taxes; but not all tax cuts are created equal.  Cuts in personal tax rates encourage productivity because we get to keep more of what we earn.  Cuts in capital gains and dividend taxes increase investment and business start-ups.  The road map to prosperity exists.  Now we need a Congress and a President who will take the right road.

Michael A. Morrongiello, Ph. D.

My fellow capitalists. I am seeking your opinion about Time Warner’s plan to re-organize the business model for the delivery and sale of high speed Internet offered as roadrunner. I am also seeking your input on Eric Massa’s response.

I believe it is a core principle of capitalism that a business has the right to evaluate and modify their business model how they see fit. Time Warner has identified a need to change based on their understanding of the their industry. I’m sure some people will end up paying more and others less. I think moving to a tiered consumption based system makes sense.

As for Massa there are few if any examples that I recall of a time government involvement has been a positive influence when regulating an industries pricing. This quote is a great example of how government is disconnected from industry “They have yet to explain how increased Internet usage increases their costs.” Mr. Massa also said “Time Warner has announced an ill-conceived plan” what gives him the expertise to evaluate their plan? Why do they need to explain how increased usage increases costs? Isn’t that the concern of the share holders and customers more than the government. Besides, it is typically the case that the more you consume the more it will cost with almost anything. I guess we should add high speed Internet to the bill of rights just under health care…

It is not acceptable for government to interfere with industry at this level. I believe these are the types of things that the majority of people will read and agree that Massa is doing the right thing. Unfortunately, government meddling like this is what leads to economic and industry issues long term. If capitalism is left alone, the natural order of free markets will decide what is acceptable.

http://www.the-leader.com/news/x1098997265/Massa-to-fight-Net-data-caps