07-30-2010: Economic White House Illiteracy Slaughtering Middle Class

Posted: July 27, 2010 in Weekly Constitution Watch
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{Posted 07-27-2010}

The so-called President of the United States met Tuesday (07-23) morning with a bi-partisan group of legislators at the White House to brainstorm “help for middle class business”.   Following the meeting he blessed the Nation with a few ignorantly arrogant remarks suggesting more of a brain drizzle, than brain storm.  Maybe that’s why this meeting was downplayed as just a meeting and not an “economic summit” or at least given the credibility of a “bipartisan committee”.  The Obama Administration is usually big on talky committees; or perhaps the indolent White House Resident was just transparently demonstrating that he hates middle class America for its independent quest for excellence and fully intends to destroy it.  He did after all promise transparency.

At any rate, this esteemed, very expensive, well dressed group came up with nothing of any value for the middle class beyond the usual meaningless tripe that passes in our media culture as Obamanomic brilliance.  The focal point of Tuesday’s White House brilliance was “loans for small middle class businesses”. Honestly – this is what our genius White House came up with to throw at 9.5% statistical unemployment, 19% real world unemployment; commercial / retail lease space steadily vacating by the hour;  historic residential foreclosure rates;  complete insolvency of Social Security, Medicare and Medicaid not to mention the Federal government itself;  several States in bankruptcy with more than a dozen States near bankruptcy;  the number of insolvent cities and counties across the country growing by the week; investment capital flooding out of the U.S. and New York to London – the new financial capital of the world;   the devaluation of the U.S. dollar; the destruction of worldwide U.S. credit-worthiness; a certainty of coming inflation;  a high probability of hyper-inflation; and a level of Federal government corruption on a scale never before seen in world economic history.  We are experiencing Federal government corruption so vast, it is pathetically regarded as common place and unremarkable.

“Loans for small business”. You really have to tattoo the word “stupid” on your forehead just to listen to this drivel.  Small business doesn’t need loans.  Small business needs customers. This idiot’s Administration is drowning small business in a tsunami of new “small”  hidden taxes;  is suffocating small business beneath a mountain of corrupt, near-sighted regulation, all with his left hand and then offers loans with his right hand and claims he’s offering an economic solution.  Either this megalomaniac is simply too dumb to lead;  or insane;  or he is intentionally leading his Administration down a path focused on destroying American middle class entrepreneurship.  It’s obvious that he is more malleable than bright;  I’ll give you mentally unstable;  but intentionally destructive – no question about that.  It is simply not possible or probable that our President, Vice President, 100 Senate Members and 435 Members of the House are this economically vacuous.  The crushing of our middle class, which I remind you is the financial backbone of America is completely intentional.  It is by design.

It is not accidental that our current White House Resident, a troubled and indoctrinated Marxist from a young age is surrounded by a destructive, hateful gaggle of self professed Mao loving communists.  (No disrespect intended to geese.)  I also remind you that without an economically viable, revenue generating, American middle class; there is no possible way to continue funding a defensive U.S. military capability in a world that is at best, not very friendly, nor stable.  You may want to ponder this because it’s important.  It is an obvious undermining, possibly treasonous strategy, not a coincidence.

Let me give you an example.  I’ll use my own now defunct, fifteen year old civil engineering consulting firm, which my wife and I dissolved in May of 2010 for lack of business.  I’m now a professional, 59-years young, over-the-road (OTR) truck driver for what it’s worth.  If you’ve never owned your own business, this may illustrate the fallacy of taxing those earning more than $250,000, but never touching the sacrosanct uber rich trusts and foundations.  You should realize beforehand, that the purpose of Obamanomics is not to “share the wealth” as is frequently opined.  The purpose is for the international financial elite, the “oligarchy” to “control the wealth”.  The American middle class entrepreneur is notoriously independent and difficult to control, thereby rendering them unsuitable candidates for One World Governance.  It is Obama’s assigned, oligarchical task to bring this independent middle class to its knees as preparation for admittance to World Globalization – but that’s another conversation – I’m just saying it, so you know the context he appears to operate within and who he actually works for – because it sure ain’t “we the people”.

Many, if not most small businesses are “limited liability corporations (LLC’s) or partnerships.  Some are “sole proprietorships”.  In all three cases company income passes through to the owner’s personal income tax.  My own corporation was a standard “C” corp, but my wife’s bookkeeping firm is an LLC.  My “C” corp functioned much the same way for tax purposes as any LLC, since any retained corporate profit is taxed at the corporate rate of 37%.  This behooved me to pass any profits through to myself or subject this income to double taxation.

If, as at one point, my firm had five employees;  the firm would have to generate a bare bones minimum monthly revenue of $6,000 per employee per month just to keep the door open.  At this revenue level rent, utilities, cleaning, phones, errors and omissions insurance, liability insurance, office supplies, furniture, computers, plotters, printers, software, copiers, vehicles, travel, employee payroll and other office expenses could be covered.  Note that this level of revenue could not cover employee health insurance benefits, matching retirement accounts nor any salary at all for my wife and I.  Yet this revenue, under Obamanomics must be more highly taxed as it grosses 5 employees x $6k/month x 12 months = $360,000 per year, which is $110,000 above Obama’s arbitrary $250,000.

In other words, even though my wife and I could derive no income whatever for our own 70-hour work weeks at the $360,000 per year level;  Obama says our taxes must be increased because we are supposedly wealthy.  How could we pay this tax?  For my wife and I to earn $36,000 per year between us, which is $18,000 below the average U.S. worker salary (for two) and $72,000 below the average Federal worker salary (for two);  our employees would have to bring in an average of $9,000 per employee per month.  This would put our small business at the $540,000 annual income level.  In order for our small business to provide our employees with health insurance, retirement benefits and provide ourselves with a joint salary of $1,000 per week as the business owners, the annual revenue would have to be maintained at a minimum of $13,000 per month per employee;  or $780,000 annually;  a truly obscene amount requiring punishment under Obamanomic theory.

These numbers are a bit gruesome when you realize that the realistic upper end of civil engineering employee productivity is about $10,000 per month per employee.  Most firms cannot achieve this, though a few exceed it and ours was able to meet it.  The end result is that for my wife and I to get a raise from $36k to $50k annually – we had to hire more employees.  This means more office space, more furniture, more  computers, more licensed software, etc.  Capitalizing and expanding the business, which is already not quite break-even is extremely risky and difficult in a situation like this.  The capital can only come from my wife and I taking less salary, working far more than 70-hours per week or from a loan.  If we borrow to hire more employees we then add the additional overhead burden of debt service on top of everything else.

If you were in the above business environment while simultaneously facing higher taxes and more draconian regulation – would you feel comfortable borrowing money to expand your business?  Only a fool like Obama would purport to do this.  This is why businesses that are profitable in today’s marketplace are sitting on their retained earnings and not reinvesting.  In a business environment being heavily micro-managed by a corrupt Congress for benefit of special interests the risk/reward ratio for investment doesn’t even come close to 50/50.  A small business owner may as well flush his or her money down the toilet – it’s much less trouble than trying to grow against the impossible uphill odds that Washington D.C. is busy creating.

My point in boring you with all this is simply to point out a real world small business example that I am personally familiar with along with its relationship to White House and Congressional policy.  Obamanomics cannot grow an economy. Obamanomics coupled with so-called health care, finance and immigration reform along with soon to be upcoming environmental regulation (replacing crap and tax since it can’t pass Congress) and out-of-control Federal spending is guaranteed to collapse our U.S. economy and bring the American middle class painfully to its bloody knees.

None of this is an accident and it certainly isn’t because Barack Hussein Obama and his corrupt Congress “don’t get it”.  They get it it perfectly.  This is not a liberal academic exercise.  This is our lives.  If “we the people” fail to wake up from our political coma soon – we’ll be getting it perfectly as well.  Please vote knowledgeably so we can fix this mess.  I would like my children to be free.  I hope you do as well.  Voting knowledgeably can still fix this so vote happily.

For those who wish to dig deeper I’ll explain what I mean by “intentionally destroy the American middle class”.  I don’t mean this figuratively or facetiously.  I mean it literally. We’ve all heard the term Globalism or One World Government or more often now “governance”.  We are led to believe by the lobotomized journalism majors in today’s media that this is nothing more than a different way to manage world affairs through working more cooperatively together; an academic exercise really.   This thinking is just a sales pitch similar to that of socialism being a system to “share the wealth”.  Socialism has always been intended by its inventors, the oligarchy, to stop short of the promised communist goal of a government free utopia.  It is intended to stop at full centralized government control thereby enabling the oligarchy to easily control it and us by controlling only the top of the power pyramid.  Using socialism, which the oligarchy, not Karl Marx or Frederich Engels, invented to establish manipulated, centralized governments throughout the world, facilitates control of all people and all wealth throughout the planet simply by controlling the political leaders, that is, the anointed ruling class of each nation.  This is why the oligarchy now uses the term governance in place of One World Government, which they realize will never happen.

The oligarchy I refer to is the interconnected, intermarried, international financial elite with family names such as Rockefeller, Morgan, Harriman, Loeb, Rothschild, Warburg, etc.  This group of families under the leadership of Mayer Amshel Bauer, later changed to Rothschild, began planning in 1773 to take over and control  all wealth and all people in the world by eliminating free market competition and returning the world to feudal serfdom.  They basically use central banking to control the ruling class, which indirectly gives all control to themselves as no member of the ruling class can survive without the oligarchy’s blessing and money.  This is the reason the RNC and DNC are non-functional as far as “we the people” are concerned.  The RNC and the DNC owe their existence to the oligarchy – not you or I.  We have foolishly and incrementally given up our “consent” of the governed and now have no elected representation whatever.  We stand alone, but together.

The end result hoped for by the oligarchy is a worldwide return to the feudalism of the Dark Ages where there are only three classes of people.  The financial elite or oligarchy, their ruling class pawns and their slaves.  Guess who the slaves are.  Dishonest criminals like Bill and Hillary Clinton, the Bush family, Al Gore, Barack and Michelle Obama, etc. are the anointed eunuch ruling class who are and have been busily selling our freedom down the drain for self gain.  Some might call it treason.

The upstart American middle class, which still insists on freedom, delusional or not;  is a serious roadblock to Globalized serfdom and the oligarchy wants it wiped out.  That, I believe is Barack Obama’s day job.  You may disagree, but I doubt anyone can produce evidence of Obama’s beliefs or actions contradictory to this task.  His night job is, of course, golfing and vacationing on Martha’s Vineyard courtesy of one of the oligarchy’s “$50,000/week beach cottages”;  this one named Blue Heron Farm.  Supposedly Mr. Obama is paying the cottage rent out of his own pocket.  I suppose the same way he purchased  an upscale Hyde Park home on an Illinois Senate salary.  I call it oligarchy magic;  and it only costs the pawn his soul.

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