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Sunday, November 4, 2012

“Bill” Board – Day 14: turn in your test


Time is up.  Time to decide. Time to turn in your test papers, as my government teacher in the 11th grade use to say.

This is the last post in this series. The last “Bill” Board for me. I leave you with this thought: words form ideas, ideas drive elections, and elections have consequences. 

In 2008, the words were “hope and change.” Today, the word is “forward.”  Both slogans convey positive ideas, but upon reflection, are nothing more than empty shells into which the average voter can project his or her own meaning.  In 2008, few looked beyond the rhetoric to discover what then Senator Obama and his merry band of “critical theorists” meant by those words.  In the name of political correctness, his ethnicity trumped any serious discussion about his ideology, his circle of friends, or his track record.  Instead, we left it to him to define how those words would “fundamentally transform America.”  We were satisfied to believe, with no basis in fact, that the election of a black President would prove once and for all we had achieved the civil rights era objective of a post-racial America in which, as Barack Obama said, “There is not a Black America and a White America and Latino America and Asian America -- there’s the United States of America.”   Instead, what we elected was the first post-American president, who has accomplished – if nothing else – dividing America by race, by economic class, by religious belief, and by political party. 

As Abraham Lincoln famously stated in his second inaugural address, “A house divided against itself cannot stand,” a fact on which this President is counting – but in a negative sense – to achieve his goal of fundamental transformation.  In his speech, Lincoln made the case that the struggle against slavery would determine the outcome of a free people.  If President Obama were to give Lincoln’s speech, he would make the case that the struggle against our republican form of government will determine the outcome of the socialist / Marxist ideal of a one-world government.  The speech might go something like this:

A house divided against itself cannot stand. I believe this government cannot endure, permanently, half slave [social democracy] and half free [a constitutional republic]. I do not expect the Union to be dissolved — I do not expect the house to fall — but I do expect it will cease to be divided. It will become all one thing or all the other. Either the opponents of slavery [social democracy] will arrest the further spread of it, and place it where the public mind shall rest in the belief that it is in the course of ultimate extinction; or its advocates will push it forward, till it shall become alike lawful in all the States, old as well as new — North as well as South.[1]

Fortunately for us we do not have to opine about what the President might say. It is 2012, and we have the President’s track record and his own words we can examine.  Here is his track record:


We also have the President’s own words. In a 2001 WBEZ.FM Chicago Public radio interview, when Mr. Obama – then an Illinois State Senator – said this “… the Supreme Court never ventured into the issues of the redistribution of wealth and the more basic issue of political and economic justice in this society.  … The Warren Court … did not break free of the essential constraints placed by the founding fathers in the constitution.”  President Obama concludes,  “Generally, the constitution is interpreted as a charter of negative liberties, says what the states can’t do to you, says what the federal government can’t do to you, but it doesn’t say what the state government or the federal government must do on your behalf.” 

Taken in its in entirety, the WBEZ interview reveals a President who sees himself and his “coalitions of power” as the mechanism to bring about “fundamental change” to America rather than working through Congress and the Constitution.  The President’s thinking is foreign to me and seems to me to be an abrogation of the constitutional “contract” between the federal government, the states, and most importantly the citizens of the United States.

To me, the choice seems clear. I pray it does for you also.

Turn in your test.  Vote November 6th.

“Bill Board” Day 13 – Two Clear Choices


The “Bill” Board advertisements over the past two weeks chronicle in numbers failed Obama administration policies and the impact on American families.  His “transformation” of our constitutional republic into a failing social democracy is almost complete. For example, if the Patient Protection Affordable Care Act (viz., Obamacare) is not repealed, fully more than 40% of the American economy will be controlled by the federal government. And, for the first time in American history to be a law-abiding citizen, you will be mandated to buy a product from the government. Sadly, if the government can mandate you to buy healthcare, they can mandate you to do anything.

The choices before us are clear. Do you believe our inherent individual rights come from God and are to be protected by the government, or do you believe they come from the government? Do you believe in the rule of law and that the government can exercise only those specific powers granted it by Article II, Section 8 of the Constitution?  The record shows that our current President does not.

In a 2001 WBEZ.FM Chicago Public radio interview, when Mr. Obama  -- then an Illinois State Senator – said this “… the Supreme Court never ventured into the issues of the redistribution of wealth and the more basic issue of political and economic justice in this society.  … The Warren Court … did not break free of the essential constraints placed by the founding fathers in the constitution.”  President Obama concludes,  “Generally, the constitution is interpreted as a charter of negative liberties, says what the states can’t do to you, says what the federal government can’t do to you, but it doesn’t say what the state government or the federal government must do on your behalf.” 

Taken in its in entirety, the WBEZ interview reveals a President who sees himself and his “coalitions of power” as the mechanism to bring about “fundamental change” to America rather than working through Congress and the Constitution.  The President’s thinking is foreign to me and seems to me to be an abrogation of the constitutional “contract” between the federal government, the states, and most importantly the citizens of the United States.

When historians look back on this election, they will see it as a point of strategic inflection in America’s history: did we meet the challenge and remain a constitutional republic or did we succumb to the socialists’ siren call? I do not know, because I do not hold the future; only God does.  But I do know I have a vote, and I know how I will cast it.

Who and what will you choose?

Vote November 6th.

Thursday, November 1, 2012

“Bill” Board Day 11 – Feel Poorer? It’s because you are poorer.


Four years after the new era of “hope and change” started are you feeling poorer?  Maybe, it is because you are.

In June 2012, the Federal Reserve released its 3-year Survey of Consumer Finance.  The median family net worth in 2010 was $77,300, down from $126,400 in 2007 –levels last seen in 1992. A drop in home prices is a big reason behind this loss.

Moreover, the forced shift to unwilling part time work has contributed to declining real family incomes.  So has the shrinking labor force, with more and more people giving up the search for work.  In August, the labor force participation rate for men was the lowest on record, which goes all the way back to 1948.  The overall labor force participation rate was the lowest since September, 1981, before the Reagan recovery.

In addition, jobs being created are not replacing the incomes of the jobs being lost.  As economist John Lott reported at FoxNews.com on October 3, “Mid-wage occupations accounted for 60% of the jobs lost during the recession, but low-wage occupations accounted for 58% of hiring during the recovery.”

As a result, since President Obama entered office, annual median household income has declined by $4,019, or 7.3%.  Moreover, the decline has been greater since the recession supposedly ended in June, 2009, than it was during the recession.  In the three years from June, 2009, until June, 2012, median household income declined by 6%.

Closer to home, in Virginia Beach where I live, using publicly available data for a Virginia Beach family-of-four[1], over the period 2009 to 2011 (this is the last period for which I did a detailed analysis of the Virginia Beach City budget (2011-2012)), the average Virginia Beach family saw its annual disposable income decrease by $9,500 (14%) and its home’s value decline by up to 17%:[2]

·       Median Virginia Beach household income decreased from $65,776 to $59,298,[3] a decrease of approximately $6,000.

·       Gasoline prices increased from $1.88 per gallon to $3.71,[4] an increase of $1,400 per year. [5]

The monthly food budget for a family of four has increased from $770[6]  to approximately $950 per month,[7] an annual increase of $2,160. In May 2011, the last month prior to my analysis, food prices soared 3.9 percent, the biggest gain since November 1974.

So, while the median wage earner is struggling, what is the government doing?  The federal government is in gridlock and the Bush Tax cuts look like they will expire. On top of this, the City of Virginia Beach has passed a 2012-2013 budget that raises personal property tax $0.06 per $100 of assessed property value.

If the federal payroll tax break expires this December, and the Bush tax cuts expire Jan. 1, new, higher rates will take effect the following year. Since payroll taxes are deducted from wages every week, the effect there will be immediate, whereas the income tax rate increases only affect income starting in 2013. If employers adjust withholding, the effects could come sooner.

In addition, proposed sequestration cuts will take effect starting in January too, meaning their impact, like the payroll tax cut’s expiration, will be more immediate. The cuts are evenly split, with $27 billion each in 2013 for defense and non-defense spending, plus $12 billion in cuts to Medicare.

Using the Tax Foundation tax calculator, for the average Virginia Beach family (2 wage earners earning about $32,000 each and 2 dependents under 17), expiration of the Bush tax provisions, with no action by the President or Congress, will result in an increase of the family tax bill by $2,200 per year. For a small business owner (S-Corp) making $300,000 per year in business income, the additional tax bill will be an additional $11,000 per year.  Add to this the effect of sequestration on the military in Hampton Roads – fewer jobs – and the effect would be divesting on the economy.

So if you are feeling poorer, you are.  And while you are making cuts to make ends meet, the government is raising taxes and borrowing more to make their ends meet.  When the government taxes and spends, it reduces the capital available to business.  Without capital, business cannot grow.  When businesses do not grow, they do not hire.  Without  jobs, there is nothing to tax.

Vote November 6th.



[1] Assumes $12,500 tax burden: federal Income tax (estimated at $4,000), state tax (estimated at $1,500), and employee’s portion of payroll tax (estimated at $3,500), Virginia Beach City Tax ($3,500).  This data was obtained from online tax calculators, federal state, and local websites.
[2] Case Schiller Home Price Index, January 2011
[3] Virginia Beach 2011 – 2012 Proposed Budget Executive Summary
[4] 24 Month Average Retail Gas Prices in Virginia Beach, GasBuddy.com
[5] Assumes 1.5 vehicles in a family, at 10,000 miles per vehicle-year or 15,000 miles at 20 miles per gallon.
[6] Official USDA Food Plans: Cost of Food at Home at Four Levels, U.S. Average, February 2008
[7] USDA Center for Nutrition Policy and Promotion.

Remember ...

"You're entitled to your own opinion, but you're not entitled to your own facts," Sen. Daniel Patrick Moynihan.

"Against public stupidity, the gods themselves are powerless." Schiller.

“Who controls the past controls the future. Who controls the present controls the past.” – George Orwell, 1984

"Statistics are no substitute for judgement," Henry Clay

"The problem with socialism is that you eventually run out of other peoples' money," Margaret Thatcher