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  • Morning Bell: The Road to Recovery Begins with the End of Obamacare

    When President Barack Obama was trying to sell his $787 billion economic stimulus plan to the American people, there was no louder cheerleader for the plan than Mark Zandi of Moody’s Economy.com. Zandi confidently produced scientific tables purporting to prove that for every $1 the Obama administration gave to states, GDP would grow by exactly $1.36. Zandi later produced an analysis claiming that Obama’s stimulus would create 2.2 million jobs.

    But as millions of Americans now know all too well, Zandi was very, very wrong. President Obama’s stimulus has completely failed to create any jobs and instead has witnessed more than 4 million jobs lost in 2009. Commenting on the state of the U.S. economy, Zandi now tells USA Today: “It’s getting increasingly unusual that we’re not seeing a hiring kick set in.”

    If Zandi and his allies on the left want to figure out why the economy is not creating any jobs, they need to put down their failed Keynesians formulas and talk to real business owners and executives. Executives like Dan DiMicco, CEO of steelmaker Nucor Corp, who told the Wall Street Journal: “Companies large and small are saying, ‘I am not going to do anything until these things — health care, climate legislation — go away or are resolved.’” Or Porta-King CEO Steve Schulte who tells USA Today his company is not investing because “proposals in Congress to tackle climate change and overhaul health care would raise costs.” These businessmen have every right to be worried. As we’ve detailed before, the Senate Health Bill currently being debated in the Senate would be a disaster for the U.S. economy:

    Kills Jobs: All told, the Reid Bill raises taxes by $370.2 billion over the next ten years with many of those taxes starting to be collected this year with unemployment at 10.2% and rising. Worse, the bill includes a job killing employer mandate which taxes companies for hiring people. Specifically, companies with more than 50 employees that do not offer a health plan approved by federal bureaucrats will be forced to pay a $750 per employee job tax.

    Hurts Small Businesses: The Reid Bill acknowledges it is terrible public policy for small businesses and tries to address this problem by including a “small business tax credit” to minimize the impact of the job killing employer mandates and regulation-caused increases in private health insurance premiums. But the tax credit only lasts two years and largely excludes small business owners, small businesses with high-average payrolls, and firms with 25 or more workers. Essentially, after all exclusions,  the only eligible firms are those firms with 10 or fewer workers as well as those with low-income workers—the least likely to offer coverage even with a significant price reduction.

    Hurts Poor: The Reid Bill’s employer mandate is especially punitive on poor families. Firms that hire an employee from a low-income family who qualify for an insurance subsidy are charged a tax penalty of $3,000. So a company could save $3,000 by hiring, say, someone with a working spouse or a teenager with working parents, rather than a single mother with three children. Worse, companies only have to pay $750 an employee instead of $3,000 if one quarter of employees are low-income. This creates a situation where, if a company has a lot of low-income workers, they can actually save money by dropping their health plan and just dumping all their employees into the federal exchange at their own expense.

    This morning the White House will host a “Forum on Jobs and Economic Growth” or what everybody else is calling a “jobs summit.” At the summit, the 130 invited executives, union leaders, academics and local government officials will discuss what the White House wants to call a “jobs plan” but what everybody else is calling a second stimulus. But the ideas being discussed for the second stimulus are the same failed ideas from the first stimulus.

    It is way past time for a new direction. Yesterday, House Minority Whip Eric Cantor (R-VA) outlined a seven point common sense plan for job creation here at the Heritage Foundation. Item number 1: “Halt Any Proposed Rule or Regulation Expected to Have an Economic Cost, Result in Job Loss, or Have a Disparate Impact on Small Businesses.” As Cantor explained in his speech, that means a merciful end to Obamacare.

    Quick Hits:

    • During a Senate Armed Services hearing yesterday, Defense Secretary Robert Gates testified that the July 2011 date for a withdrawal of troops from Afghanistan is “locked in.”
    • President Obama’s withdrawal date rattled nerves in Pakistan and Afghanistan, as American diplomats worked to convince the two countries at the center of the president’s war strategy that the United States would not cut and run.
    • When President Obama spoke to troops at Alaska’s Elmendorf Air Force Base last month, the White House ordered the F-22 the servicemen had placed in the hangar moved because they didn’t want Obama speaking in front of the weapon he fought so hard to kill.
    • According to the Gallup Job Creation Index — based on U.S. employees’ self-reports of hiring and firing activity at their workplaces, job creation remained weak in November.
    • President Obama’s $787 billion stimulus has been a boon for the economy of Washington, DC.
    Posted in Obamacare [slideshow_deploy]

    32 Responses to Morning Bell: The Road to Recovery Begins with the End of Obamacare

    1. Ken Jarvis - Las Veg says:



      won't write good about it.

    2. Ozzy6900, CT says:

      When will Liberals learn that the Federal Government CANNOT create jobs (unless they are Government jobs)? Only BUSINESSES can create jobs! The only thing that the Federal Government has been able to do since the early 1900's is DEGRADE and NEGATE jobs. Since before most of us were born, the Liberals have tried to make their precious Government be the lord and master of the working world. It hasn't worked yet, has it? Leeave jobs to Businesses and the Economy to those that know how to deal with it!

    3. Whicket Williams Kin says:

      I have been watching this very closely for my entire adult life, which is longer than I care to admit Where you have extreme corruption unchecked, people are in bad shape and the country suffers as a whole. When the crooks at the top are reigned in, the economy explodes and people do well, until the cycle repeats itself. This happens continuously throughout history. The only question here is, how long is it going to be before they are reigned in this time? It is like Bernie Madoff in control of everything, and everybody who is in a position to do anything is in on it, so it is in their interest to pretend it is not happening.

    4. Ben C, Ann Arbor says:

      The fact that Howard Dean has stated "the Democratic party is in permanent campaign mode" and that "we can be both socialists and capitalists" speaks volumes for the direction the White House is sending us. He has finally validated what has been apparent since Obama began his campaign. Time to distribute pink slips.

    5. K H says:


    6. Jonathan Seid, Willi says:

      Just this week the county sent a truck around my neighborhood to repair pot holes. This vehicle is a self contained machine that blows debris away, fills the hole with the asphalt and then scatters small rock over it. It is quite the machine to watch for about 10-minutes or so. It requires one operator and one flagman. Maybe you have seen one in your neighborhood?

      Before this machine, there would have been 4-men doing the pot hole repair plus the flag man and the truck driver…for a total of 6-men.

      My point to all of this is that the supervisors and planners in my county are liberal and have spoken eloquently about how they are for the little man; you know, the common guy. Yet in their action, they have purchased an expensive piece of equipment that benefits a large corporation who manufactures and services the equipment and has put 4-men out of work.

      As is the case repeatedly, we are asked to absorb their declarations and rhetoric as truth and not to question their good intentions. Such is the discipline of liberalism. In action, these liberal (do gooding folks) have taken away the work and benefits of 4-men, meaning 4-families and replaced them

      with a machine built out of the state, no less, by a large company.

      When the left rails on and on about the conservative minded citizen being more supportive of BIG Business than of the small guy, let us be reminded that so many of the economic problems we suffer today are brought on us by liberal minded people with little regard for the realities of growing a business. And it's not difficult to see. Liberals want to grown government, there's so much less competition.

    7. Richard Cancemi, Arl says:

      The way to Recovery is to get rid of Obama, all of his gang, and all the leftist and big spenders in Congress.

      We need to stop the hand-outs to foreign countries and stop the waste at home.

      We need to dump the idiotic environmentalists and go after corrupt organizations such as SEIU and Acorn.

      Let us have a realistic energy policy, roll back spending and taxes and have amendments for Term Limits and a balanced budget that relies more on watching what is spent rather than raising taxes to offset the profligate spending.

      All politicians and civil servants should have to live under the law etc without special privileges. They might think twice before passing the crap they impose on J.Q. Citizen!

      THAT would be a plan for true Recovery.

    8. John, Arizona says:

      Is there a Ken Jarvis out there? What's the matter Ken? No come back for the failures of Reid/Pelosi/Obama in their socialistic plans for America's survival? There must be a lot that you can blame on the Bush administration for eleven months of the Dem's failures!

    9. Mike Rapkoch, Billin says:

      Perhaps most troubling about the continued support of the stimulus package among Democrats, academics and "thinkers" like Zandi is the absolute blindness to fact. The truth is that the stimulus, cap-and-trade and health care reform are draining the productive economy. The 10.2% unemployment rate is proof enough of failed, no, worse, destructive economic policies, yet the truth is lost on the Keynesians.

      "Truth," Aristotle tells us, "is the mind in agreement with its object." Here the object is the fact or facts which stare the Zandis in the face but, caught up in some Humean, Kantian idiocy, these individuals are convinced that their minds (ideas) are the truth and the object (read "objective") reality is to be ignored because, I guess with John Locke, the truth is their subjective "idea" of what is so.

      This line of thinking is, as Edward Feser has explained, and I paraphrase, the single greatest disaster in the history of human thought. Nonetheless, it is a demon that, though demolished by proper analysis, stubbornly refuses to go away. Until right reason again prevails I fear our leaders, a term used with tongue stuck in cheek, will simply go on living life in a world of their own creation while the rest of us are smothering under the truth.

    10. Jackie, Maryland says:

      It's just tragic, what is going on in our country. The poor economy, the cap & trade, war, Obamacare, etc.etc.

      Seems as though, citizens of our Great Nation are not being heard.

    11. Gary Wilson, Toledo, says:

      A very good analysis of the last ten months of failed policies, and yet those in the current administration have no understanding of how we got here and how we can get out of it. Or, they understand and choose to wreck the American economy and burden future generations with crushing taxes. The choice of which path they are pursuing is difficult to understand and neither path is encouraging to any thinking American.

    12. Dennis A. Social Cir says:

      The citizens of this Nation do not count anymore. The dems and obama are all about power and controll, pelosi and reid are in power and demand that they be able to controll all the people. This sure does sound like socialism, communism, or just plain old dictatorship. The question for us, who will be the head dictator, reid, pelosi, or obama????

    13. joan, connecticut says:

      The embedded politicians in Washington, think they know what is best for all citizens of the USA. I hope these pork loving pols, get their hats handed to them in the next election. They push bills through, without listening to people they are elected to represent. Did we send them to Washington to vote their will, or to act for the public good? They are so beholden to big business, and the K Street lobbyists, that they have sold their souls to. There are a few good men and woman in the House and the Senate,but they are few and far between.The good ones get nowhere and are ignored and denied their voice. It's time for us, to keep calling and writing the others who ignore tea party goers, and let them know that they are failing to do their job, and we are not happy, Its time for a big change. Term limits, would serve to stop these career politicians. We have to do something before it is too late, lest we wake up one day to find we are now a Socialist country and our Constitution has been round filed. Act now and E-mail often, to wake your politician up, maybe they will finally listen to us.

    14. Richard Cancemi, Arl says:

      Ken Jarvis,

      Can you come out of your dream world long enough to explain how and where and when the Recovery has started? What is good about Marxism?

      Would you or could you explain you position as a 'true believer'?

    15. Ron Derry NH says:

      The road to recovery is being paved over by lost jobs of Americans, company failures and wishful thinking by government drones that can't see tax revenues collapsing, business momentum shifting to foreign sources and imbeciles that are on fixed incomes that haven't been affected yet by the failing job market.

      As tax revenues drop so will government s ability to print a bubble recovery and the bell will toll for those ignorant enough to believe a recovery is based on government spending and debt increasing.

      Every business I know of from Lowe's, to H depot to self employed workers are still dropping and we have yet to see the damage to the economy when these commercial interests start folding and more homes go to foreclosure next spring when un employment runs out for the next bunch.

      Eventually this recession and bubble spending will exhaust the moron theory and government services will start feeling the pain the rest of us have already endured from the Socialists with no clue.

    16. jim toledo says:

      I think that people like Ken Jarvis, 'The ROAD TO RECOVERY HAS ALREADY STARTED,


      won’t write good about it', must be living on Mars or are so financially set that nothing matters. It is pathetic for me to see so many folks standing in line for food, clothing or shelter; this administration has done nothing to set a climate for growth or economic stability and has created a hugh deficit, an unemployment rate over 10%, a proposed hike in taxes to pay for Health care, an illusion regarding cap and trade and a bailout of several businesses that has proved to be a 'bust'. It's like watching the 'the Amateur Hour'.

    17. Ben C, Ann Arbor says:

      Ken Jarvis:

      My view is that whatever recovery we are experiencing is occuring despite the current administration. Spending money we don't have for efforts that do not create wealth then asking our kids to pay for it doesn't make sense to me – does it to you? The stimulus money is borrowed and must be repaid. The path we are on is that of bankruptcy. And you view this as a good thing? I sure as heck don't and I will not stand idley by while my daughter is stuck with the bill.

    18. TIM K COUNCIL BLUFFS says:

      ImpeachObamaCampaign.com is a project of the Policy Issues Institute.

    19. Clay R, says:

      The Libs and their mainstream media cohorts are a PRICELESS bunch. When Bush was in office and the economy was doing well (my company had it's best year ever in 2006)they were saying how bad it was and that the DJIA didn't matter one bit. Now the the annoited one is in charge and true unemployment is around 18% nationally, they're saying look at the DJIA, that's proof of recovery.

      I have a question for these libs; Since you and you're union buddies have decimated manufacturing in this country, creating a consumer based economy, how can we have a recovery when 18% of the consumers do not have a job?

    20. George T Council, Id says:

      Obama & his corruptocrats don't want the economy to recover. Thier goal is to collapse the economy completly. Do some research, see who his cabinet members & czars are & where they come from!!! They hate capitalist America and are determined to bring it down!!!

    21. Rich, Osh Kosh says:

      If U think this is just the Obama admin., you're short sighted. Lenin said, "two steps forward, one step back". The socialist world movement has been moving forward world-wide since the early 1900's. The US is simply being taken over more slowly, which is why are still a power. But we won't be for long if the socialists continue. "Societies fail to the extent they adopt socialist policies." – Ayn Rand. Social Security-broke; Medicaid-broke; Medicare-broke; Amtrack-broke; Fannie-Mae/Freeddie-Mac-broke; Cuba-broke; USSR-broke & gone. See a pattern yet? And what are we told? Capitlaism has failed in banking and insurance industries and we need more gov't regulation to fix this. These were, and are, two of the most regulated indutries in our society.

      "One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary." – Ayn Rand 1975

      Sound familiar?? HELLO,McFLY!!! All that is happening is that the gov't is now working hand-in-hand with banking industry, and big unions in taking from the People to give tax breaks or subsidizes to these indutstries (friends), while expanding a voting base of gov't workers. Once 50.1% of the population has a vested interest in gov't largess, the working people (whether making $25K or $250K) are screwed henchforth. This is why the founders of this, the late greatest country known to man, created a system of LIMITED FEDERAL GOVERNMENT!! (Which has since been disposed of by the elites of BOTH parties.)

      "To preserve independence (of the people), we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude. If we run into such debts as that we must be taxed in our meat and in our drink, in our necessaries and our comforts, in our labors and our amusements, for our callings and our creeds, as the people of England are, our people, like them, must come to labor sixteen hours in the twenty-four, give the earnings of fifteen of these to the government for their debts and daily expenses, and the sixteenth being insufficient to afford us bread, we must live, as they now do, on oatmeal and potatoes, have no time to think, no means of calling the mismanagers to account, but be glad to obtain subsistence by hiring ourselves to rivet their chains on the necks of our fellow-sufferers." – Thomas Jefferson

    22. Pingback: Jobs Summits And Why Liberals’ Always Doom Us To Failure And Misery

    23. velma moore artesia says:

      how do we start the impeachment process and how do we go about getting term limits on the ballot for senators and representives. also we need to cut out slush fund money. rubberneck peloski spent 3,500.00 on flowers last month. that would have paid someone's wages.

    24. Judith in Michigan says:

      The first step to recovery starts next November in the voting booth if we can hold on long enough. But we can start laying the groundwork now. The current administration is not clueless or stupid as many fear. They know exactly what they are doing, and it is deadly for this country.

      We need, and must support, Conservative leaders who are NOT afraid to fight back, will pound tables with fists (I'm tired of mealy-mouthed rebukes. Show some passion, for goodness sake!!), DEMAND accountability for all of the corruption that is so rampant today and get back to the business of rebuilding a great America. A free America.

      We did it once, we can do it again.

      We must do it again. There will be no second chance if Socialism/Marxism becomes the law of the land.

    25. kim CA says:

      I agreed 100% with all comments except Ken jarvis. He didn't know real Economy recovery look like. He probably only see news from MSNBC,ABC,CBS,NBC & CNN. We need jobs right now not Global warming or Healthcare. Why Obama & dems.congress & main stream Media not mentions a big corruption Acorn & hoax Global warming. Acorn is still getting the reward 8.5 billions dollars. That is not fair for tax payer. We work hard & pay alot of tax to feed those criminal organizations. I feel this country became socialist country with Obama & his gang, dems. congress & ACLU, SEIU, ACORN & Civil lawyers. Our country will become communist if we don't clean up vote fraud from ACORN.

    26. Prevailer76AZ says:

      On the road to recovery indeed!! Not in the Phoenix area.

    27. Al Reasin says:

      I Stand Up For Freedom with my small business owner friend twice a week in Bel Air, MD, the founder of the Patriots Corner Club, and his comments echo those in this missive. The uncertainly in the economy because of the incoherent tax message from this congress and administration would make anyone resist investing and hiring until the tax policies and program spending has reached some measure of clarity. Even a school of hard knocks engineer like me understands that Econ 101 lesson.

      My personal decisions are influenced as well by this uncertainly as I expect others are too. But when you have an administration with the lowest number of cabinet members and other high officials, including Mr. Obama, in modern history who have no outside of government or business experience and who are arrogant to the point of being blinded by ideology, what would one expect.

    28. Joe in SC says:

      Getting term limits passed will not happen because those responsible for the changes are the ones determined to stay in office until they die. The only option is to vote them all out of office and start fresh. To do this, the voting population must examine a candidates past record, if he or she has one, and pay close attention to all campaign rhetoric to be sure that it is more than catch phrases such as "Hope and Change". We should listen carefully for some evidence that the campaigner has some understanding of the job he seeks. Pay close attention to the candidates associates. There's a lot to be discerned from that, as many have recently learned.

    29. R. Cover says:

      Americans don't like it when the political pendulum swings too far either way, left or right. The WSJ's readers know very well that the economic policies of Obama and his socialist team have failed and the status will not change with time. The two wars are stagnant and Obama has presented neither the definition of winning, nor a strategy for it. Despite the urgency and gravity of those problems, he elevated nationalized health care to the top of the national agenda. Granted, health care and business success are intertwined and there is much to be improved in America's health care systems. But, let's also try to become economically stronger by shedding the liberal agenda. Obama's team has swung the pendulum too far to the left. Americans should not let them hold it there. If the current administration and congress get away with turning a deaf ear to public outcry, they will surely experience a corrective adjustment of the pendululm in the 2010 and 2012 elections.

    30. Sheri, Ohio says:

      Rich in Osh Kosh — well stated!

      Thank You

      ("We must make our election between economy and liberty, or profusion and servitude.") <— isn't this missing a "not"

    31. Tom, AUstin TX says:

      Silly conservatives using comon sense and facts to make a point. If we could just get the progressive/marxist kill the messenger format down, we too can destroy the world… They want us to be more like europe…. well we got the 10% unemployment part, now if we could all just get in line for our pittance, we would all be happier!!

      Healthcare is deficit netural…

      Worldwide global warming fix will ONLY cost $175 TRILLION…

      Electrical costs will skyrocket.. (Is that a bad thing?)

      Taxes will go up (I forgot, only on the rich… silly me)

      Isn't Oil a natural acuring organic product??

      But I digress…

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