Merry Christmas and A Few Thoughts about Socialism

Let me start this column by wishing everyone a very Merry Christmas. I hope all of you get through these hard economic times and that this Christmas season brings you joy, peace and happiness. May you all have a wonderful and prosperous 2009. We will all get through this and come out stronger just like we did after the Great Depression.

Now for the politics: I am afraid. As stated in one of my earlier columns, it seems that President Bush is going to be remembered, not for his foreign affairs achievements, but for his move away from the free market and into European style socialism. Apparently, we didn’t even have to wait for President-Elect Obama. We are getting it right now. And boy, are we getting it hard!

Last week, the final nail in the coffin of a free market, was hammered. President Bush decided to give our friends in Detroit approximately 17 Billion Dollars. Of course, there were many strings attached to this bailout. For one, the auto companies must prove they are competitive and on the road to profitability by the end of March. Secondly, the UAW must agree to substantial concessions; these include elimination of the jobs bank and acceptance of company stock instead of cash into the legacy plans. The UAW has already said that they will appeal to the incoming Obama administration to lessen these concessions. Based upon Obama’s love for the unions, I am sure that all of the demands on the UAW will quickly go away.

The part of this bailout plan that scares me the most is that the US Government could actually be purchasing shares in the auto companies as part of the plan. Since when does this government own companies: since, maybe October or November. It started with AIG and since then has gone on relatively unabated. Don’t you want to own GM? Especially in light of the fact that the government ownership will dilute the stock so much that some stock market analysts are saying that GM stock could become worthless.

Didn’t we fight a cold war so that this type of socialism would not happen? Didn’t Ronald Reagan do everything in his power to de-regulate so that we would actually have a free market? And, lastly, how can Mr. Bush be happy that this will be his legacy. Wouldn’t he rather be remembered as the man who kept America safe after the biggest attack against the continental United States in its history?

Secretary Paulson has spent the bailout funds without any checks and balances. The banks have received billions of dollars and just yesterday we discover that more than one billion has gone to bank executives. These are really people that need money. Maybe another week in Palm Beach can be paid for by the taxpayers? Wasn’t this money supposed to be used to loosen up the credit markets? That obviously hasn’t happened. Money is tighter than ever. And, the housing market continues its spiral downward. I agree that Secretary Paulson will probably go down as the worst Treasury Secretary in history. He has completely bungled his way through this economic downturn.

Now, the bailout fever has reached a new high! Even casinos are seeking bailout funds. Why shouldn’t they? We are giving the money to everyone else. I guess when Secretary Paulson decides to give money to the casinos which are suffering their worst economic turndown ever; the next people with their hands out will be organized crime. They probably can’t collect on their loans either. If Paulson gives them money, maybe it will result in a few less broken legs!

The bottom line is that the bailouts have got to stop. We cannot continue to print worthless money and give it to businesses that don’t deserve it. The economic cycle must play itself out. If that results in a few bankruptcies so be it. No one is going to save the mom and pop restaurant owner, why should we save some mega corporation with overpaid executives. Once this economic cycle completes itself naturally, growth and jobs creation will return. This country survived the Great Depression. It can survive this. Let’s keep the free market. It’s the only way to ensure long term growth and the creation of wealth.

I probably should have started this column by saying, “I am angry.” The proper word is not afraid. I am angry that President Bush has bailed out the failing auto industry. I am angry that President Bush has abandoned the free market. I am angry that President Bush’s legacy will not be his foreign policy achievements, but his cave-in to the left in the final days of his presidency.

In closing, I, again, wish you all a Merry Christmas and a great 2009.

© 2008 Frank T. DeMartini – All rights reserved. Permission to be copied will be granted freely upon request.

What is a Republican Today?

This week turned out to be very interesting. Because of its events, I now have a whole new view on what has become of the Republican Party and who are actual Republicans. Unfortunately, it appears that the Reagan Republicans and the highly educated Yuppies from the 80’s are long gone. The party is beginning to look like it consists of what used to be Democrats in the 50’s and 60’s. It seems that our base has completely changed.

On Monday night, totally by accident, I attended an ACLU event that honored, among others, Magic Johnson. The title of the evening was something to the effect that this organization protects the Bill of Rights. I had to really hold my tongue on that one. In fact the pamphlet given to all attendees stated Freedoms of the Press, Religion, etc., as the cornerstone of the ACLU.

Nowhere on this pamphlet was there any mention whatsoever of the Right to Bare Arms. Being a lawyer, I am pretty sure this would also be considered part of the Bill of Rights. You and I both know that there is not one left wing Democratic or ACLU cardholder that would ever defend that position.

It also struck me as odd that this is the organization that supposedly protects Freedom of Religion. Again, you and I know that this organization only protects such when it benefits the Democratic way of thinking. The ACLU would never defend a Christmas display on public grounds. In fact, it would sue to eliminate such displays. We already know that the ACLU is totally against the Ten Commandments. They have tried to stop them being displayed in a number of places. This is not Freedom of Speech or Freedom of Religion. It is an outright attack on those freedoms.

If the ACLU truly believed what it allegedly stands for, the Bill of Rights would be protected completely. There would be no exceptions. Free Speech would be just that. The Supreme Court has basically stated that there are limited exceptions to Free Speech. Among these are obscenity and inciteful speech. These exceptions are logical. There should be no others.

However, this whole discussion is the subject of another column completely. Let’s get back to the point. As I was sitting at this ACLU propaganda filled banquet, I began to peruse the room. It was filled with Corporate Leaders, Attorneys, and other high net worth individuals. A large portion was entertainment industry as one of the honorees was the head of Universal Pictures. This group, on the whole, was the elite of Southern California society.

On Tuesday, I attended another mostly entertainment industry event. This event was sponsored by an underground group of Republicans who make their living in the entertainment industry. Most of these people are afraid to even tell anyone that they are Republican. In fact, they hold occasional meetings in which the tone is that of an AA meeting. They sit at a round table and complain about how they have been treated as being a Republican in the entertainment industry. Sounds to me like the entertainment industry is suppressing a person’s right to free speech just like the hypocrites at the ACLU.

As I sat there and talked with a number of the group, which I might add was a much smaller group, than the Liberal ACLU crowd, I noticed a stark difference between the groups. Here, among my brethren, were mostly blue collar workers. This was the union cardholding, working class of the entertainment industry. It was grips, electricians, stunt men and actors. Where were the producers and moguls? Where was the group that I would expect to be Republicans?

In fact, I was actually told, when introduced to a working stuntman, “What are you doing here?” His meaning was clear. The amount of management, producers, executives, and creative intellectuals that are Republican is really low. The majority of this group was the working class Joe!

My mind really began to spin at this point. Have the tables turned that much? Are the Republicans of old, the Democrats of the present? I was seriously beginning to think that is the case.

I then began to think about this year’s election and the campaign and my hypothesis became clearer. During the campaign, who was Sarah Palin playing to? She was playing to the base of the party: Joe the plumber and Joe six-pack. In fact, most of her support was blue collar labor, exactly what used to be a Democrat.

When you look at where our party runs strongest, it is obvious that there is a fundamental change going on here. We win the south, Midwest and what are substantially rural, working class areas. Where do the Democrats run strongest? In areas that contain intellectualism and big business.

What have we done and why has our base completely changed to this portion of the populace? And, more importantly, how can we get the Reagan Democrats and intellectuals back?

For my whole life I always believed that Republicans believe in small government, strong national security, supply-side economics and traditional family values. I still believe this is the core of our party. This is what will win elections. In the last eight years, has the Big Government Bush White House caused a loss of faith in our electorate? Have the Keynesian ideologues changed things that much? Has the country swung to the left? Or, have we just lost our way?

Isn’t it funny that one of Mr. Bush’s last accomplishments in office will be to pander to the United Auto Workers and make sure that the Big 3 gets their bailout? His administration seems to be bent on giving them the money even though a large group of traditional Republicans are against it. Is big spending what he wants to be remembered for? Or, would he rather be remembered for his foreign policy accomplishments?

I do not have answers to the questions posed at this time. I can only state that the questions exist and must be answered by the next generation of the GOP. We must go back to our roots and our beliefs. We will get the intellectuals back, but it will take time. Until then, we will have to live with the left wing, big government Obama, Clinton, Pelosi, Reid, Frank and Bush. Oh, did I say Bush?

On another subject completely, I must make a small comment here about the scandal in Illinois. Politics as usual in Illinois must stop now. The Governor must step down, admit his wrongdoing and spend a substantial amount of time in prison. A Special Prosecutor must be appointed to investigate this scandal at all levels. And, if these investigations lead to the incoming federal administration, they must be dealt with accordingly.

We cannot allow politics as usual to continue in Illinois. It is really time for this machine that goes back 50 or so years to change! Oh, isn’t that a great word, “Change!”

Bailing Out the Auto Industry Part 2 (or Maybe Another Solution)?

Since my last column on the auto industry, much has changed. The CEO’s of the big three are attending hearings this week in Congress to convince lawmakers to give them billions of dollars. In fact, they are getting so desperate that all of the CEO’s drove the 500 miles from Detroit to Washington, D.C. in hybrid vehicles. This is a far cry from the private jets used a few weeks ago, which in response to Congressional and public ire, are now being sold or put into storage.

The situation at Chrysler and GM is much worse than the situation at Ford. In fact, Ford is saying that it can probably last through most, if not all, of 2009 without any money whatsoever. Chrysler and GM, on the other hand, probably cannot make it through the end of this year.

At this point, both Nancy Pelosi and Harry Reid know that the necessary votes for their socialist bailout of the automakers are not there. Conservative Republicans are against it and many are voicing their opinions in this regard. Georgia Republican, Tom Rice, stated, “I don’t see the upside to the obligating of more taxpayer money for a private industry.” In fact, the situation is so dire from the automakers viewpoint, that the UAW is actually considering serious concessions in order to stop the potential bankruptcies. As stated in my prior article, the unions would suffer the most if the Big 3 were forced to file for Chapter 11 protection. And, right now, the unions are really scared.

The UAW is the main the reason why American automakers have a higher per vehicle cost than other car makers. In fact, did you know that laid off autoworkers get 95% of their salary as part of the union contract? How can we compete with garbage like this as part of our economy? Simply put, we cannot.

The UAW, acting in true desperation, is offering major concessions, including the elimination of the above cited 95% welfare. They are also agreeing to open renegotiations of the union agreements which may mean lower salaries and more competitiveness. And, there may even be some movement on extra payments due the pension plans.

Movement is in the right direction. However, I still believe that the way for the auto industry to survive beyond the next 12 months is to file for Chapter 11 protection. In fact, Texas Representative Jeb Hensarling told Fox News just that: "It's painful; it's not a fun process. But some actually end up leaner, meaner, more profitable, more healthy in the back end of the process. I don't buy into the fact that (bankruptcy is) simply not an option.”

So, why are all of the democrats on Capital Hill still pushing for the bailout? As stated earlier, it’s because they must act for their union cronies. They cannot hope to get elected without the union money and the union influence over its members. The American people should not kowtow to this. The Republican Party should stand up for the belief in free enterprise and fight these union bullies. We should not agree to any bailout of the auto industry without even more substantial union concessions and then, only if, the economic plans of the car companies are not just a delay of the inevitable.

Who should we bailout instead? How about the American taxpayer? There is currently a bill being drafted by Texas Congressman Louie Gohmert that would do just that. Representative Gohmert is suggesting that the remaining funds from the 700 billion dollar bailout be cancelled and instead, every American should get a tax holiday for January and February of 2009.

The plan would suspend both income and FICA taxes on every wage earner for two months. It would not be a regressive benefit because the people hurt the most by FICA (social security and Medicare) are the lowest wage earners. And, by stopping income taxes on everyone, the wealthiest will have extra cash for investment. This extra cash would be used to create jobs and stimulate the economy.

I know that most of you are saying that this plan is ridiculous because of the geometrically expanding deficit. However, this plan is actually cheaper than almost every other proposal on the table. By enacting this plan, the total cost of the tax holiday would be approximately $334.4 billion. (Source: American Solutions, a conservative think tank founded by former Speaker of the House Newt Gingrich). This represents a savings to the American public of almost sixteen billion dollars from just the 700 billion dollar bailout. If this is the final amount of federal money spent, it would be an even greater savings. Remember, there are almost one trillion dollars worth of plans on the table in addition to the 700 billion dollar plan already passed by Congress.

However, you and I both know that the Democratic Congress would never do something like this. Imagine giving people their own money to spend and invest as they choose. The shame! The horror! Remember, they believe that government is the answer and solution to everything. People just are not smart enough to deal with their own fate. They need someone (the government) to tell them what to do. Bigger government will solve every problem.

I beg to disagree and I really believe that Gohmert is onto something. Maybe, he is thinking of Ronald Reagan. Remember, Reagan felt that government was the problem and not the solution.

If you support Mr. Gohmert’s plan, which I suggest you do, please go to: https://redstate.kimbia.com/taxholiday and register your support.

© 2008 Frank T. DeMartini – All rights reserved. Permission to be copied will be granted freely upon request