Obama has botched the recovery

The full resolution is, "President Obama and the Democrats in Congress could have adopted different laws and policies to lead the United States into a more effective economic recovery." This challenge is intended for an experienced debater; please do not accept the challenge if you are new to debating. This is a difficult resolution because it covers so much ground. I contend: 1. The economic stimulus package was a failure. According to Obama Adviser Christina Romer, if it were passed unemployment would not exceed 8%, and by now it would be reduced to 7%. http://thehill.com... Unemployment went over 10% and is now around 9.5%. It was supposed to build transportation infrastructure, but only 3.3% of it was spent on that. Most of the money went to bailing out states whose rampant spending, much of it going to employing overpaid government workers whose unions support Democrats. Some the stimulus money had an effect. It's impossible to spend that much money without having some effect. For example, there were tax cuts early in the program that probably had a positive effect. But by the governments own accounting, on recovery.gov, only about 600,000 jobs were created. That's pathetic. The greatest incompetence is shown by nearly half the stimulus money being unspent. If there is going to be any stimulus, the money has to get into circulation, and they haven't done that. If there was going to be a government stimulus, it should have gone entirely into tax cuts and outright grants. That could have gotten the money into the economy in six or eight months. 2. The main reason the economy is not recovering on its own is that new legislation and executive policies have so frightened investors and the public that they are afraid to put money into the economy. a. The health care legislation has $500 billion in new taxes, $500 billion in Medicare cuts, and has done nothing whatsoever to reduce medical costs. http://www.cbsnews.com... In fact, increasing the demand for medical care by 40 million more insured without increasing the supply of medical professionals is certain to make medical costs soar. Just how much remains uncertain, as Nancy Pelosi promised, "We have to pass it to see what is in it." For example, it recently surfaced that the health care legislation has requirement for all businesses to report all expenditures of over $600 to the government. The paperwork involved is enormously damaging to small business. No one knows what else awaits, so people will not hire of expand. b. The so-called "financial reform" bill is similarly laden with costs and uncertainties. Virtually every financial institution must now have affirmative action offices and race-based loan quotas, totally nonproductive cost paying tribute to political correctness. http://www.nypost.com... New rules will dry up credit for many people. The full impact will not be known until vast bureaucracies are installed to impose new rules, now unknown. http://www.finchannel.com... c. Energy policy threatens has brought substantial increases in energy costs with much more promised. http://www.cbsnews.com... Obama started with a moratorium on offshore drilling to cost about 100,000 jobs and requires increases in oil imports with associated balance-of-trade deficits. http://www.rawstory.com... The Administration succeeded in getting carbon dioxide, necessary for life on earth, classified as a pollutant. The alternative energy that Obama likes is about four times as expensive, so manufacturing will be forced offshore and consumers and businesses will be forced to spend money subsidizing windmills rather than productive ventures. Exactly what will happen is unknown, but the threat paralyzes investment. No one can plan on building a new manufacturing while there is factor of four uncertainty in energy costs. d. The Obama Administration is bought and paid for by labor unions. The Stimulus required that union wages be paid by localities, doubling the labor costs of carrying out projects. The Administration wants "card check," under which Vinnie from the union can put his arm around you and suggest that you sign here to get a union. So far the legislation has failed, but the threat remains. Beyond that, the Administration has floated the idea card check can be imposed by the National Labor Relations Board without new legislation. http://www.workforce.com... Obama as put a union lawyer in charge of the NLRB, raising the chances of that happening. Faced with the threat of doubled labor costs, businesses are hesitant to expand. There is good evidence that both consumers and businesses are paralyzed by fear of the Administration's radical policies. Businesses have $2 trillion that they could invest but are unwilling. Since there is so little hope for economic growth, large companies are looking at acquisitions to increase sales rather than investing in new capacity. 4. Obama and his fellow Democrats are not shy about favoring taxes on the rich. The rich, of course, are he people who create jobs. The Democrats plan to continue the Bush tax cuts in the lower brackets, but let taxes increase on the higher brackets. Much of the new taxes will come out of small business, with serious effects. http://www.portfolio.com... Most of the expansion of small business comes from plowing profits back into business. The government taking the profits ensures that won't happen. 5. What should have been done to spur economic recovery is to remove the fears that are preventing investment. The government should have: a. Adopted health care legislation that would have lowered costs by tightening qualifications of Medicare suppliers to reduce fraud, enacting tort reform, making insurers compete across state lines, and funding increased training for medical professionals. The rest should have been postponed. b. Adopting clear measures to increase energy supplies through increased drilling and building nuclear plants. Recycling nuclear fuel should be made legal. Subsidies of uneconomic wind and solar power production should be dropped. The threat of energy taxes should be renounced. c. Bailouts to states should be authorized only subject to states adopting austerity measures including dramatic cuts in union retirement benefits and requirements to vend out state services. State who don't want or need bailouts need not accept them, and thereby escape. Big spending states in trouble must reform to qualify, and they would be required to repay the bailouts after they have reformed. d. Financial reform efforts should be focused on the real problems of reforming Fannie and Freddie. That would restore confidence in the economy. The extra expenses required for political posturing should be eliminated. e. The government should adopt policies of reducing the regulatory burdens on business. A business ended up paying $100K because the mirrors in its restroom were two inches too high. That violates the Americans with Disabilities Act. That kind of ridiculous regulation from the ADA, OSHA, the EPA, and other agencies should be ended. A policy of reform would provide hope to the economy. What is really holding the economy back is not a lack of stimulus, it is fear of a future in which investment is pointless because there is little hope of surviving. The cure is to remove the threats of increased costs for health care, energy, labor, regulatory compliance, and taxes. The resolution is affirmed.