What will happen in an Obama second term?
So, as we listen to the GOP candidates make their case for the presidency, I think reflecting on what will happen under a second term of Obama is worth understanding. And quite frankly I am a bit frightened.
Ignore Entitlement Reform:
Of all the issues I
have with Obama, this is by far the biggest. How can a president asking
for a second term, completely slap our children's future in the face.
Every person in America (including his own budget office) understands
that Social Security and Medicare are insolvent (going bankrupt). How can our
leader completely bury his head in the sand. He has NOT PROPOSED A SINGLE REFORM to
secure these programs in the future. These programs have some easy tweaks that can be made to keep them sustainable, but because Obama feels like this will upset some
voting block, he will continue to punt on this issue, moving us
closer and closer to the scary situation that is Europe.
Obama intends to MASSIVELY RAISE TAXES. Most estimates I have seen would take top tax rates to around 40% greatly increasing taxes on numerous job creators that run small businesses. Further, tax on investment income is expected to skyrocket to offset costs for profligate spending programs like Obama-care. We are still a very vulnerable economy, how do we expect to take more money from job creators and grow the economy?
Obama did recently propose a reduction in the corporate income tax rates, but of course marred that by trying to pick winners (like clean energy) and losers (like big oil) and also adding a big tax to corporate profits abroad which will make them less competitive. Do you actually think Obama knows more about efficient capital allocation than all the free markets combined. He thinks he does.
Completely out of control, absolutely no plan to reign in long term spending (See Obama's own budget plan). In fact, he added a major entitlement (Obama-care) to the list. I do think he will reduce defense spending a bit (which I am OK with), but he has no plan to come close to balancing a budget. Again, this is devastating to our children.
On Obama-care, I will just say this program is a tragedy that will begin to demoralize this nation in 2014. Whatever the estimates, remember that they are going to force insurance on millions more people and thus the demand for health care is going to go way up, and employers are going to be forced to cover the bill (do you think they will hire more or less people as a result?) I am truly scared to see how much HEALTH CARE COSTS WILL EXPLODE over the next 10 years, and what tax rates will be needed to cover everyone.
Support Illegal Immigration:
The only place where the Obama team has weighed in on illegals, is to fight laws like the ones in Arizona and Alabama where they tried to implement laws to identify illegals. Amazingly, we need a ton of LEGAL immigrants to keep our economy growing, but by catering to illegals, we crowd out many of the legal immigrants who wish to come here. Expect four more years of INCREASING ILLEGAL IMMIGRANTS who utilize our schools, roads, hospitals, and jobs, but do little in the way of paying for these accommodations.
Strangle Domestic Energy Production:
All of his rhetoric, attacks on oil and gas companies, and subsidization of clean energy programs, points to Obama's dislike of traditional energy sources. Obama has also REDUCED THE NUMBER OF DRILLING PERMITS on federal lands by 40%, tremendously lowering production and the jobs associated with production. Hey its great that we thrive to live on renewable energy and he gets points for effort. Disappointingly, we do not have competitive clean energy alternatives, and the private sector only needs the government to step in to back losers. If they were winners, do you think the government would recognize the opportunity before the market? They NEVER have before. Sadly, the result of Obama's energy policies will be HIGHER GAS PRICES and utility bills, while further increasing dependence on foreign oil and wasting billions in government money to find uncompetitive clean alternatives.
The predictability for an America on four more years of Barack Obama is simple. He wants to GREATLY EXPAND THE SIZE AND SCOPE OF THE FEDERAL GOVERNMENT through increased entitlements, taxation and regulations while utilizing massive borrowing and dollar devaluation to pay for it. Expect higher taxes, higher national debt, higher gas prices, more illegal immigrants, and bankrupt retirement programs to result. Frightening.
Obama will tell you that expansive government is needed to save you from finding a job you may not like, protect you from taking loans you cannot afford, provide you with free health care that you deserve, all the while sticking Richy Rich with the tab. Please do not take your vote lightly in this election cycle, and do not leave it up to a 10 second sound bite on TV. If you are a hard working American who pays taxes, you stand to lose a lot of your money, your freedom, and your future with four more years. Make sure yourself, your family, and your friends are aware of the consequences.