According to an AP report, President Obama will be looking to announce a new investing spree… well, it’s not a new one but it is one that will defy the “5 year spending freeze” that he called for. CNSNews has an article detailing the pending announcement…
“President Barack Obama is calling for a six-year, $53 billion investment in high-speed rail, as he seeks to use infrastructure spending to jumpstart job creation.
An initial $8 billion investment will be part of the budget plan Obama is set to release Monday. If Congress approves the plan, the money would go toward developing or improving trains that travel up to 250 miles per hour, and connecting existing rail lines to new projects. The White House wouldn’t say where the money for the rest of the program would come from, though it’s likely Obama would seek funding in future budgets or transportation bills.
Vice President Joe Biden and Transportation Secretary Ray LaHood were to announce the initiative during an event Tuesday in Philadelphia.”
You may be wondering about investing in the face of a call for spending freezes during his State of the Union address and his speech at the Chamber of Commerce yesterday. It seems to defy the message he wants Americans to take comfort and resolve in. The article covers this as well…
“Obama’s push for high-speed rail investments is part of his broad goal of creating jobs in the short-term and increasing American competitiveness for the future through new spending on infrastructure, education and innovation. During last month’s State of the Union address, Obama said he wanted to give 80 percent of Americans access to high-speed rail within 25 years.
At the same time he’s calling for new spending on sectors like high-speed rail in the upcoming budget, Obama also has pledged to cut overall spending as he seeks to bring down the nation’s mounting deficit. The White House has said environmental programs for the Great Lakes, and block grants for community service and community development are among the programs that will face cuts.”
That last part will make the Liberal voters happy, huh? I can hear the screams now… “
You lied to us!” or “ Don’t touch my environmental causes!“ “It’s all Bush’s fault!”… Yep, that’s what it will be again. But the fact is that the groundwork was already laid for this by President Obama and his administration…
“Obama’s call for increased spending on high-speed rail projects is nothing new. He’s long seen the sector as an area of opportunity for creating jobs and improving the nation’s transportation system. His administration awarded $10 billion in federal grants for high-speed rail projects last year, including $2.3 billion for California to begin work on an 800-mile-long, high-speed rail line tying Sacramento and the San Francisco Bay area to Los Angeles and San Diego; and $1.25 billion to Florida to build a rail line connecting Tampa on the West Coast with Orlando in the middle of the state, eventually going south to Miami.”
Look, the government doesn’t create private sector jobs. One of the roles of government is to create an environment where businesses are able to thrive so that they can create the jobs. However, with the unparalleled spending of this administration, businesses exist in the same uncertainty that you and I do. Why would they continue to spend their cash reserves or take out more credit if they have no real sense of what their revenue will be in the next year or two? Do you feel comfortable dipping into your savings right now, knowing that jobs are hard to come by and there is no certain safeguards in place to prevent a further economic slide? It’s the same for business enterprises. And would you want to take out more credit today if your income is not equal to your expenses?
Your answers might change once your debt starts to disappear and your job security improves. That would be a time for more risk-taking, right? Right now, the President needs to focus on stopping the continued spending of the government… and don’t pretend that investing is not spending. We can’t invest without spending money that we don’t have! We are faced with paying other bills first and let’s not even get into the fact that we owe LOTS of money to a loan shark… China. You think that being in debt to the mob is frightening, try thinking about owing China. Would you take a loan out from the Gambino crime family to invest in some shaky stocks, especially if you have already invested in failed stocks before? Amtrak is a government run train business that is losing $14 Billion a year. Why go even further into the hole with a train system that hasn’t even begun yet?
Maybe when people start to consider these things in terms of how they have to make decisions at home, it will help them realize just how poor of a decision this is.
Even more importantly, once it is clear how unwise this notion of investing is, given the current finances of this country, people may start to wonder why the President said he wouldn’t spend money but he is about to now. This spending won’t spur new business growth, it will only cause a limited number of businesses to profit while entire segments of our economy stagnate. The greater portion of our businesses will struggle all in the name of convenience for travel.
Thomas Jefferson touched on this when he wrote a letter to Shelton Gilliam in 1808, “The same prudence which in private life would forbid our paying our own money for unexplained projects, forbids it in the dispensation of the public moneys.” We can learn a lot if only we would pay attention to what the Founders had to teach us all those years ago.
It’s time for President Obama to put down the grandiose ideas of his utopian dreams because we can’t afford them anymore. We can’t afford the investing, the spending, or the lying anymore.