The year 2010 will reveal which direction our economy, housing market, and culture are headed. The greatest economy in the world when left to its own recuperative powers will rebound. After all, people need to earn a living. Historically, no matter the challenge, the American worker and small business owner have led the way to recovery. The engine to employment and success for the economy, and all of America is the entrepreneur and small business owner.
The time it will take to fully realize a recovery, that is the creation of jobs and putting millions back to work, will be dependant upon government actions. Will the government be an ally of business, the true creators of employment, or will the government be the enemy of job creation? To date the Obama adminstration has thrown road block after road block in front of business that has suppressed job creation and recovery.
The promise from candidate Obama was transparency, that the American public would finally be able to see who is on their side by promising to post every bill on the Internet for five days for full public scrutiny, and going even further on health care reform by promising the debate would be held on C-Span.
President Obama violated these promises, with back room closed door dealings, passing a Stimulus Bill before it could be read before being voted upon, and now allowing Pelosi and Reid to craft a health care bill in the dark of night, that will impact every living American, with the hopes of rushing another unread bill to a vote.
The Stimulus has proven to be an objective failure. Obama declared a crisis as the reason to vote on the monstrous bill before it could be read, as the only way he could keep unemployment at 8% or lower. That he would go line by line to make certain there was no waste, only stimulative spending that would create jobs for shovel ready projects. The opposite resulted. The bill contained primarily wasteful spending, driving up the deficit for future generations to repay, nearly four million jobs were lost, and unemployment surpassed 10% since the Stimulus bill was passed.
The credibility of the Presidents administration is now called into question with such dismal results. The Health Care Reform bill narrowly passed the house, and put the ugliest of American politics on display with the buying of votes through bribes in the senate to pass the bill. Now in conference to iron out the differences between the bills nobody knows what type of deals are being made that will forever change the relationship between the people and the American government, and at what cost to business and tax payers.
The Stimulus Bill (results) proved to have nothing to do with stimulus. The Health Care bill is turning out to have nothing to do with health care. Both are about power and control over the people. Both are about creating massive debt, and the largest expansion of government bureaucracy in history, that will drag down the economy through higher taxes, and increased costs of living
Both programs have small business owners frightened. The primary source for revenue to pay for these ill advised , anti business bills are tax payers, the wealthy, seniors, and small business owners.
The National Federation of Independent Business estimates the Health Care bill will cost the economy an additional 1.6 million jobs due to the mandates and costs of the bill. The cost of the bill for the first ten years when both taxes are collected and benefits are paid is estimated at $2.5 trillion. President Obama says the cost is less than a trillion. He is correct because due to a slight of hand the bill collects taxes for four years before paying out benefits in 2013. Pure deception to pass the bill and win public favor.
The government implements hundreds of billions of dollars in taxes on small business owners for four years without any benefits being paid. Those taxes depress the potential for hiring. The mandate for citizens to purchase health insurance will drive up the cost of premiums. The 40% tax on Cadillac plans falls upon the shoulders of the middle class as studies show 90% of those with the plans earn less than $250,000 a year. A group Obama promised never to raise taxes upon, further tarnishing the credibility of the president.
After all is said and done, 16 million will remain without insurance in 2019. The costs for health care arguably will be higher. The president says it will bend the cost curve down. Studies by The Heritage Foundation, and the presidents own Health and Human Services Medicare actuary says costs will go up.
This is a bad bill any way it is looked at. It will not accomplish what the president, Harry Reid, and Nancy Pelosi say it will. It will however stifle economic growth, cost hundreds of thousands of jobs, and drive up the cost of living at a time the economy teeters in the balance. This is a clear example of the government being the enemy of job creation, as with the Stimulus Bill.
The Stimulus, and Health Care reform prove to be the enemy of job creation, diverting trillions of dollars away from job growth to bigger government with no discernible benefit to Americans. The takeover of the energy sector of the economy fits this same mold. Either through Cap and Trade legislation over Climate Change, a disputed hypothesis at best, and fraud at worst, or by additional regulation through the EPA, both are the enemy of job growth.
The past week the EPA issued new guidelines for standards for smog control. If this is approved according to Dave Sykuta of the Illinois Petroleum Council, it will cost billions of dollars to meet the new standards. It would mean Sangamon County and Springfield would have the same rules as Chicago regarding fuels. This will drive up the cost of gas, put jobs in jeopardy, and for what reason? According to Sykuta the air quality in America is the best it has been since being studied. Another example of the government being the enemy of job growth.
It was reported that Illinois has now joined California, New Jersey, New York, and Michigan with the highest outbound populations. Tax policies, and regulations from states drive out business owners, people, and the wealthy to other states that are business and tax friendly like Texas, Arkansas, Indiana, and Nevada.
The state of Illinois now has over $5 billion in unpaid bills. The city of Springfield will have an estimated $12 million deficit. How will these deficits be cured? Small business owners and tax payers are watching for proposed solutions.
The state and federal elections will determine which direction the economy will go. In Illinois the Democrat candidates for governor both propose tax increases. Quinn a 50% income tax increase on personal and business income. Hynes is proposing a progressive tax that would be disastrous, and would increase out migration.
Curtis Dubay Senior tax policy analyst at The Heritage Foundation explains the progressive tax systems in New York, and California as reasons for their massive deficits, and the same result should be anticipated in Illinois. The elections in Illinois will be important to the economy dependant upon whether anti business tax increase proponents are elected or business friendly, lower tax candidates win election.
The same is true for the national mid term elections. The Democrats and Obama policies are based upon wealth redistribution through higher taxation, and regulation which punishes business and entreprenureal success by robbing the fruits of their labors. This will continue to depress job expansion and economic growth.
Whether the country continues down this redistributionist path, or a change in direction to smaller government, lower tax, business friendly representatives being elected to slow down or stop the current trajectory, will be determined by the congressional elections.
Either way small business owners, and the wealthy producing class of Americans that provide opportunity for the American worker will have their challenges. Reversing the socialist redistributionist trend will not be easy, however in my opinion, is the only way to a real and sustainable prosperous American economy.
If voters decide they prefer higher taxes, redistribution of wealth, massive government expansion, then the Remaking of America that candidate Obama promised will be realized. America will become a mirror image of a second class socialist European democracy. High unemployment, inferior services, high taxes, suppresion of the human spirit, a lower standard of living, no reward for hard work, and little opportunity for upward mobility will become the norm.
The best thing that could happen for freedom, liberty, for the economy, and for the unemployed would be the defeat of the proposed Health Care Reform bill. Health care reform is needed. This is the antithesis of a solution. Hopefully one Democratic senator will stand up and not be bought by bribes, and stop this life altering, America remaking bill
The election year 2010 will have plenty at stake. The future of Illinois, America, the economy, and the ability to put Americans back to work will be determined. The small business owner and entrepreneuers can create jobs for people to prosper, redeem their sense of worth, and contribution to society.
Vote wisely. Become involved, regardless which path you desire for your state and country. We are at a tipping point in our history, and the future of our nation, state, and future generations will be decided.
by: Fritz Pfister
About the Author:
Fritz Pfister is a real estate broker in Springfield Illinois. With over 2000 real estate sales since 1987 is recognized as a local market expert. Fritz hosts Let's Talk Real Estate live Saturday's at 10am central streaming live at WMAY.com, and was voted best Realtor by readers of the State Journal Register three times.
Fritz's website is