Obama’s ‘American Jobs Act’ a farceon October 3, 2011 at 16:05
The recent speech of U.S. President, Barack Obama, to a combined session of the U.S. Congress has been met with mixed reaction. While on the surface, it certainly sounded like great news for the unemployed, when you dig a little deeper, certain numbers do not add up.
Firstly, the American Jobs Act will cost tax payers $447 billion. This is almost 50% higher than what was originally envisaged. Some quarters are of the opinion that this act is a ploy to appease voters who will simply add to the already over strained budget deficits.
While the idea of rewarding employers via tax cuts for hiring people who have been out of work for more than half a year sounds great, this will come at a price of $8 billion, unemployed people currently enjoy grants for up to 20 weeks and Obama wants to increase this to 53 weeks. Is he crazy? This will only motivate people not to look for work. The EUC (Emergency Unemployment Compensation) is due to cease at the end of this year, yet Obama wishes to extend this fund for another 12 months at a further cost of almost $50 billion. This is hardly fair to the hard-working people who slave away to keep the wolves from the door.
Two problems exist with this strategy. One is that people are being paid not to work, and the second one is that employers are not encouraged to hire people who have recently been put out of work. It is obvious that this will only worsen the unemployment crisis in America.
It has been revealed that certain farmers are looking for workers. However, no one is prepared to work too long. The workers go out of their way to get laid off so that they can claim unemployment benefits. All these workers are doing is getting work so that they can prove to the unemployment agencies that they are looking for work.
It is believed that Obama and government should stop attempting to improve the unemployment situation in America. All of these strategies are only interfering with the free-market system and are counter-productive especially considering the ample handouts to Wall Street bankers at a cost to the American taxpayer. Removing minimum wage legislation and unemployment benefits will restore employment far better than is currently the case.
Perhaps the U.S. Government should do away with payroll taxes as these only serve to pay for other Americans to receive benefits. The way things are going, it will not be long before social security checks will not be worth the paper that they are written on. Rather allow these taxes to be used to accumulate silver and gold as these people will be able to retire with real wealth. It is no secret that Medicare and Social Security are already on the brink of bankruptcy in the U.S.
Obama announced further funding for infrastructure upgrading and repairs. Surely, it would be better to alleviate the massive debt problem first? China on the other hand has a $254 billion trade surplus. The Chinese can afford to spend money on infrastructure. America cannot. The only way Obama can fund all of these proposals is by printing more worthless non-redeemable paper notes (fiat currency electronic currency); something that will ultimately exacerbate the problem that America is currently facing. This is another reason to buy and store physical silver, especially at the current silver price of more or less $30 per troy ounce.