RUSH: Hi ya, folks, and welcome to the EIB Network, and day 15 of the Summer of Recovery. Ha! Day 15 of the Summer of Recovery. The good news is there are only 120 days ’til the November elections.
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RUSH: The Daily Caller today: ‘Lack of Jobs Increasingly Blamed on Uncertainty Created by Obama’s Policies — There is one word being mentioned by business leaders and economists more frequently when the conversation turns to why jobs are not returning more quickly to the U.S. economy: uncertainty. ‘By reaching into virtually every sector of economic life, government is injecting uncertainty into the marketplace and making it harder to raise capital and create new businesses,’ said Verizon CEO Ivan Seidenberg –‘ a big donor who contributed to Obama ‘– at a speech in Washington in late June.’ I have figured out what is going on. I’m going to make this understandable. It’s hard for people to get their arms around the fact that when I say Obama is destroying the private sector on purpose, people do not want to believe, no matter what they think of Obama now, they do not want to believe we’ve elected a president who has that as an objective. Let me give you an analogy here that might make it a little bit more — well, not palatable, but understandable.
It is said of Reagan — I think it’s true to a certain extent — Reagan decided to starve the welfare state by creating deficits and spending, therefore making it impossible for the Democrats to continue spending, and it worked for a while, back when the Democrats cared about deficits and cared about spending. The Reagan effort was to starve the Democrats of their primary weapon. Obama is attempting to starve the private sector of its primary weapon which is job creation, which is wealth growth, creation of wealth, by transferring or taking so much of the private sector, putting it into the government sector. And now these CEOs are starting to speak up. This Verizon guy, Ivan Seidenberg: ‘By reaching into virtually every sector of economic life government is injecting uncertainty into the marketplace.’ Although there are some things that are certain, and that is crippling tax increases are going to hit beginning January 1st. ‘Roberton Williams, senior fellow at the Tax Policy Center, said in an interview, ‘The whole tax situation is very much in flux, very uncertain. It makes it hard to plan.’
‘It’s clear that firms are not yet hiring. A lot of them are sitting on big bundles of cash,’ Williams said, citing the examples of Google and Apple, which are both hoarding about $30 billion in cash instead of investing it or using it to expand. … But, Seidenberg said he was ‘troubled’ by Obama’s agenda, so much so that he had ‘reached a point where the negative effects of these policies are simply too significant to ignore.” Now, Seidenberg was a huge contributor to Obama just as Jeff Immelt of General Electric was and Jeff Immelt, remember, that private dinner in Rome last week said that Obama and the American business community did not like one another and are not getting along with each other. Immelt said the US is a ‘pathetic exporter,’ according to the Financial Times. ‘Seidenberg said he was ‘troubled’ by Obama’s agenda, so much so that he had ‘reached a point where the negative effects of these policies are simply too significant to ignore.” Can I translate that for you? Meaning, ‘Wait a minute. This is so bad that anybody who really wanted to grow the economy would pull back on these policies instead of amplifying them and ratcheting them up.’
What this guy is saying is what you’ve been hearing from the Golden EIB Microphone for 18 months: it’s on purpose. We can’t ignore it anymore. These policies which are crippling the private sector and growth are on purpose. Seidenberg is not the last major business leader and Obama ally to turn on the president in recent days and they quote Immelt. Amity Shlaes had a column for the Wall Street Journal at one point, a great book, by the way, she wrote on the depression and FDR. ”We don’t know what to expect from Washington. That’s essentially what Seidenberg is saying,’ said Shlaes, author of the influential book The Forgotten Man, which argues that President Franklin Delano Roosevelt’s punitive and unpredictable policies toward business prolonged, rather than solved, the Great Depression.
‘And we also don’t like that their law involves a lot of discretion. It doesn’t say, ‘And the rules of bankruptcy are’ … The financial law basically sends the message: we have decided that they will take care of things, and the law gives them the discretion to do that as they see fit,’ when they want to do it without having it specifically spelled out.
So we in business do not know what the hell to do because we don’t know if what we do is going to be considered something the administration’s gotta stop or penalize or tax. We also are very much concerned about the economy, as it’s slowing down. Even The Politico says: ‘Danger for Democrats as Economy Slows.’ ‘The stimulus is winding down right when Democrats need it most,’ is a quote. The stimulus hasn’t done diddly-squat except the exact opposite of what it was intended to do, at least they claimed what it was intended to do. The Democrats are divided on this because at some point they want job creation. They want to do something more than just say they’re for job creation. They want to do something more than just pass legislation that is supposedly going to create jobs. They actually want to see some jobs, and they’re not seeing them. And the stimulus is not winding down at this time anyway. Only 43% of the stimulus has been spent.
The stimulus is an Obama slush fund, and it will be spent coming this fall for reelection efforts of Democrats and in 2011 for Obama reelection efforts. It’s a slush fund. Only 43% of it has been spent, folks.
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RUSH: Riverdale, New York, Adam, as we go back to the phones, you’re up, sir. Great to have you on the Rush Limbaugh program. Hi.
CALLER: Hi, Rush. It’s good to reach you today.
RUSH: Thank you, sir.
CALLER: You know I’m very distressed because I’m completely shocked that there isn’t as much of a mass, mass rebellion against Obama over his economic policies that I thought there would be. If you go back months with the health care —
RUSH: Well, there’s a reason for this.
CALLER: Yeah.
RUSH: There is a reason for it.
CALLER: Yes.
RUSH: The people who generally protest bad economic circumstances are being taken care of. The unions, the teachers, the unions —
CALLER: Yes.
RUSH: — the teachers, the public employee unions, the teachers, the people that do not work, the people who are not trying to find jobs, they’re being taken care of. There’s no reason to protest. The rest of us, that’s normally not what we do. But there is a pretty large protest movement taking place, and you will see it in November, it’s called the tea party movement.
CALLER: There’s no doubt in my mind that in November the Republicans will win both houses of Congress. I would just like to see more Senate Republicans get more angry and aggressive at Obama and really get on the TV and really tell exactly what Obama is doing.
RUSH: Well, maybe they will as soon as they await word from General Powell on what to do about Michael Steele.
CALLER: Right.
RUSH: When we clear the decks of that controversy maybe we can get to Obama and his economic policies.
CALLER: Well, I just wanted to say that I always liked Ronald Reagan a lot and I voted for him, but now I consider him The Messiah. I’ve been watching documentaries on him and if there was ever a president that really cared about Americans and production, it was him.
RUSH: Isn’t that amazing?
CALLER: Yeah.
RUSH: I mean Reagan gets greater and greater —
CALLER: He sure does.
RUSH: — as you go back and relive —
CALLER: Yeah.
RUSH: — his presidency, his speeches —
CALLER: Yes.
RUSH: It’s like anything else, when you’re alive when things are taking place, they’re your moment, things are going by pretty fast.
CALLER: Yeah.
RUSH: You look back on them after some time’s gone by and you go, ‘Wow, the man was really great.’
CALLER: Hmm. And I just want to say one thing —
RUSH: Yes.
CALLER: — very briefly. I mean if you look back even at a president like Lyndon Johnson, I mean I know he was a tremendous liberal and he gave all the federal money and all that, but at least he cut taxes, right?
RUSH: No, I think you mean JFK.
CALLER: JFK?
RUSH: JFK cut taxes.
CALLER: Yes.
RUSH: Lyndon Johnson, no, did not cut taxes. That’s like saying Walter Cronkite did objective news. Didn’t happen.
CALLER: Oh, okay.
RUSH: Yeah.
CALLER: I thought Kennedy and Johnson both pushed it through, the tax cuts. But I guess it was Kennedy.
RUSH: Well, Johnson might have gotten the ball — I don’t know. But Kennedy finished it off, if Johnson did.
CALLER: Well, these men were capitalists, were they not, Kennedy and Johnson?
RUSH: Kennedy’s father was. And Johnson, you know, yeah, (laughing) —
CALLER: No, I mean for some reason I thought that most of the presidents or practically all of them were underneath it all capitalists. This is the first one that’s like a Castro.
RUSH: Look, that’s true. Johnson was the first of the thugs.
CALLER: Yeah.
RUSH: Johnson could have taught Mayor Daley a few things, and may have. I’m talking about the original Mayor Daley, not the son. But you’re right, this is the first president who has an active animus against the private sector. This is the first one. We’ve never elected a president before who has an agenda that is aimed at punishing, specifically harming the people who work in the private sector, which is where genuine, legitimate economic growth takes place. So I appreciate the call out there, Adam, I really do.
Annette in Highland, Illinois. Great to have you on the EIB Network. Welcome.
CALLER: Yes, sir. Thank you for taking my call. I’m a third-time caller —
RUSH: Yes.
CALLER: — and here in a state that’s terminally taxed, Illinois. And I told your call screener that I had this epiphany this weekend. I was reading about Michael Steele, and I was reading about some congressman or senator who wanted to tax Internet purchases. I got really upset and then all of a sudden it dawned on me that we have 19 weeks left to go before November, and I started praying that the Democrats tax everything they can between now and November. Because I think people will get fed up and, you know, I know voters who are trying to —
RUSH: Wait, wait, wait, wait. I understand what you’re saying. But if they do this, you should know that whatever tax increases that they authorize, pass into law between now and November, will not be implemented until January. And it will not have that dramatic effect on the electorate. I mean I know what your theory is, and it’s a good one.
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RUSH: From The Politico a couple days ago: ‘Danger for Democrats as Economy Slows — President Barack Obama and the Democrats head into the summer campaign season with the economy slowing, unemployment flirting with double-digits — and few options for a quick fix. Obama’s economic stimulus plan is winding down, right when Democrats need it most.’ It’s not ‘winding down.’ Only 48% of the stimulus has been spent. What ought to be patently obviously to people is the stimulus was not about creating jobs. We’ve lost eight million jobs! We’ve lost nearly four million jobs since Obama signed the stimulus. It was never about creating jobs. Politico says, It’s that kind of year: Democrats desperately need to show midterm voters they’re doing something to create jobs.’
‘Republicans are ready to pounce, blasting the Democrats as free-spending budget-busters — and polls show voters are listening, nervous about government spending and ballooning deficits after Obama’s barrage of bailouts, stimulus and health care reform.’ They spent $800 billion, and now they need to show they’re doing something? Actually, as we all know there have been two or three stimuli, more than $800 billion. Try a trillion. They’ve spent minimum a trillion on job creation, and now they need something to show for it? The only thing that’s gonna work or show for it is job creation, and we just had the story earlier that middle class and large businesses are holding off because they don’t know what the circumstances are going to be given Obama’s tax increases, health care, and the like come January. ‘This political problem has spurred a fierce philosophical debate inside the Democratic Party over what’s the best medicine for the economy — bigger spending, or cutting deficits.
‘Liberals are clamoring for more money to save the economy, and centrists are arguing there’s no more money to give in the face of trillion-plus dollar deficits.’ Does anybody still really believe…? Well, Paul Krugman does. Paul Krugman of the New York Times. I don’t know why anybody pays any attention to him. Grab sound bite number 12. This is Sunday morning on ABC’s This Week. I’m saying, ‘Why does anybody give him any credence?’ and here I’m gonna play a sound bite. What kind of idiot am I? But it’s during the roundtable and Jake Tapper said to Paul Krugman (summarized), ‘Paul, what do we do now? What do we need to do? What do we need to do, Paul? We spent a trillion dollars and there aren’t any new jobs. The Europeans are out there cutting back. They’re going austere. They’re gonna cut taxes. They’re going to reduce spending. What do we need to do, Paul? You got all the answers, Paul. What do we need to do?’
KRUGMAN: More stimulus! I mean we — we had — (stammers) You know, right from the beginning, you know, l-luckily some of us have a track record. Right from the beginning, January-February of 2009, looking at the scale of the crisis, we said, ‘This program, although it sounds like a lot of money, seven or $800 billion, is actually not enough that you need something bigger.’ This is a pretty grim situation. We really should be going in for another stimulus program, which has a chance for approximately minus-5% of getting through Congress right now.
RUSH: Yeah, we need more of what has created the problem. So that’s leftist-agenda thinking. In the meantime, are ‘Tired of waiting for spending to rebound on its own’ if you’re a retailer? If you’re in the private sector, if you have a retail business, are you tired of waiting for people to start spending money? If you are, other retailers are doing things you should take note of. ‘[R]etailers are taking matters into their own hands. Stores like Sam’s Club, Target, Toys ‘R’ Us, Staples and Office [‘Dee-pot,’ as Obama would pronounce it] are offering unconventional promotions meant not only to attract visitors to stores, but also to get them feeling profligate. Sam’s Club is introducing a program in which it facilitates loans for shoppers of up to $25,000, backed by the Small Business Administration.
‘Target will give its credit card holders 5 percent discounts. Toys ‘R’ Us is instituting a holiday fund program where it adds to shoppers’ savings, and Staples and Office [Dee-pot] are giving away office products for a penny or at no cost.’ The banks are not lending money so retailers are, essentially, going to start loaning consumers money. They’re not going to sit out there and continue to take it in the shorts. If Obama will not stimulate their sector, they’re gonna stimulate it themselves. Wait for a federal law to say, ‘You can’t do this!’ Wait for an executive order: ‘You can’t do this! Only banks can give loans. We’re in charge of the banks and you’re not a bank, so you can’t loan anybody any money.’ Don’t be surprised. They don’t want private sector economic growth. They don’t want it yet. Not in the regime.
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RUSH: Danny in Bangor, Maine. Great to have you on the EIB Network, sir. Hello.
CALLER: Hey, Rush, it’s great to talk to you.
RUSH: Thank you.
CALLER: I’ve been a longtime listener since high school. You’re one of the biggest reasons I’m conservative, so mega dittos to you. My main purpose for calling was that Kennedy’s tax cuts were actually passed by Johnson, and also that they were justified using John Maynard Keynes philosophy. The goal was to increase the deficit using tax cuts, and they were not to be tax cuts for the rich because — and you can go back and read this in congressional testimony — the rich would waste them, quote, unquote, using —
RUSH: No, no. Wait, wait, wait. Wait, wait, wait, wait. Your memory differs from mine. I have played the Kennedy sound bites. I don’t know what Congress said when they passed these things. You may be right about that. But when Kennedy at the Economic Club of New York pushed these tax cuts, the whole theme was economic growth, the whole theme was putting more money in the private sector, the whole theme was letting people keep more of their money. Now, the tax cut that was finally passed was just 10% or 20, top marginal rate — yes, it was, 91% to 71%, that’s what it was and then Johnson tried to put 10% of that back. Now, it did pass, it was an homage to Kennedy because he was assassinated. But to say that Johnson was in there as a tax cutter, I can’t go along with that. Now, they mighta tried in Congress to portray all this as Keynesian, but Kennedy didn’t. And that’s the key.
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RUSH: A bunch of liberal economists are gonna dispute this, but we did not go into a recession until the fourth quarter of 2008. After the Democrats and after the media got what they wanted — they had been stumping for a recession for three years — and after they controlled Congress and they finally got their way that’s when unemployment — you look at the unemployment numbers when Obama was elected, that’s when we started losing 700,000 people a month, the month he was elected, not the month he took office. And Kennedy said, ‘A rising tide lifts all boats.’ He was not talking about Keynesian economics. Keynesian economic theory, as we know, sinks every boat except the leader of the regime’s boat.