Look Out Below, Hope and Change Are on The Way Down!

During last year’s election I would ask people why they were voting for their candidate.  Obama supporters would frequently tell me that they were voting for him because they wanted “hope and change.” When I asked them what hope and change looked like, very few people could offer specifics. They just wanted “hope and change.”

Last week, I watched as President Obama explained the justification for the Budget he submitted to Congress on February 26, 2009: “Americans are getting the Hope and Change they voted for in November.” I was relieved. Forty days in to his Administration, we are now starting to understand what hope and change looks like. In real numbers, we’re looking at a deficit in excess of two trillion dollars, and a Dow Jones Average that has gone down over 1500 points in forty days. I hope that things start changing for the better.

This Blog isn’t supposed to be about partisan political views, but given what has transpired the past forty days, aren’t you wondering who is running this asylum, formerly known as the United States of America? Consider this reality: Our politicians voted on a Bill that will (with interest) cost over ONE TRILLION Dollars without even reading what they were voting on. And despite pledges to end earmarks, the Stimulus and Budget have over 8600 “earmarks” – and we’re only forty days in to this Administration. Even a self respecting pig would be embarrassed by that much pork.

When we bought companies (involving “only” millions of dollars), we read the loan documents before we signed (a.k.a. voted). When we bought a house we read the mortgage documents before we signed. And anyone who runs a company would be called stupid and found negligent if they failed to read contracts for transactions that in essence bet their future. But in Washington, when you don’t read something that is arguably betting the future of this country, you’re not called stupid, you’re called a Democrat.

Two weeks ago, we got a $275 Billion mortgage bailout plan. This economic depression has really hurt some hard working people and these people deserve some leniency from their banks so that they can stay in their house until they get back on their feet. But this bill goes way beyond protecting the unfortunate. It basically says that its OK that you overpaid for a house you couldn’t afford because, after all, you had a proverbial gun held to your head and were forced to take on too much mortgage. You can relax, Big Brother (a.k.a. the government) will take care of you.”       

Last week the President, in submitting his Budget to the Congress, proclaimed that his budget will halve the federal deficit within a couple of years. What he failed to mention is that his budget presumes a 4% growth rate for the economy. Does anybody, believe that this economy will grow 4% for the next two years?

His budget also assumes that tax policies have a static impact on the economy. In announcing tax increases of One Trillion Dollars (remember when one trillion used to be considered a lot of money), the President let it be known that itemized deductions will be reduced for those evil people whose main sin has been that they worked hard, played by the rules and made some money.

Newsflash for our politicians! Limiting the deduction for interest on mortgages will hurt the sale of houses and will prolong the decline of the housing sector. Phasing out the deduction for charitable contribution will hurt many non profit organizations whose mission it is to serve the poor. Tax policies are dynamic; they directly influence the behavior of the taxpayer. If you don’t think these tax policies will have a devastating impact on the construction trades, the hospitality sector and the thousands of charities in this country, then you’re dumb enough to be a Democrat.

Finally, hopefully our politicians will learn, words matter. The President can criticize companies who go to Las Vegas, but don’t be surprised when 72 companies cancel their contracts with hotels in the city after his comments. Obviously, this will impact on the people who are employed by these hotels.  And as an entrepreneur who has created over one thousand jobs I have a message for everyone in Washington: You don’t help the job seekers by attacking the job creators! Make no mistake about it, as Lawrence Kudlow recently wrote: “He (Obama) is declaring war on investors, entrepreneurs, small businesses, large corporations, and private-equity and venture-capital funds.”

You can dismiss the notion that I’m a disgruntled Republican upset with the results of the election. Truthfully, the Republicans did an awful job of governing this country when they were in power. What I am is someone who loves his country and is thankful for the opportunities that have been afforded me. As a father with four kids, I am deeply concerned about mortgaging the future of this country for the belief that the government knows what is best and will take care of us. 

Hopefully, this Posting has caused you to think about what is happening with our country. Some of you may agree; others may disagree. Given what is at stake for our kids and grandkids, voters cannot afford to be apathetic, ignorant, and overlook the substance of all this “hope and change.” For all our faithful readers, here is some free advice: Look out below because hope and change is coming on down!

TranzAct Technologies, Inc.