This week, many of our largest corporations reported robust earnings – a positive sign of growth.
This last week large banks reported the rape of the public once again, with "profits" that came from skimming off pieces of production from common Americans. Every dollar a bank "makes" is one it takes from a productive person in this country, just as every dollar the government taxes is one it takes from a productive person.
But too many of our small business owners and those who aspire to start their own small businesses continue to struggle, in part because they can’t get the credit they need to start up, grow, and hire.
Capital formation does not come from borrowing. It comes from savings. But your policies, along with those of George W. Bush and the Federal Reserve under both you and he, have intentionally destroyed the return available on savings.
Therefore, you have sought to intentionally and willfully destroy capital formation, which is the source of entrepreneurship and small business formation.
This is a fact and no amount of spin will change it.
You have chosen to protect those who made bad bets in their lending through government largesse and manipulation of the markets.
You have permitted banks to lie about the quality of their alleged "assets" by getting rid of mark-to-market accounting and nightly collateral and margining for OTC derivatives.
Instead of allowing the market to enforce discipline, you have tampered with the market, protecting those "big businesses" and their revenue siphons which have bled the economy dry.
The problem is not the absence of government "help". It is the presence of government interference which has stifled small business growth and formation, and no amount of further tampering will make the situation better.
Three times, the Senate has tried to temporarily extend that emergency assistance. And three times, a minority of Senators – basically the same crowd who said “no” to small businesses – said “no” to folks looking for work, and blocked a straight up-or-down vote.
Some Republican leaders actually treat this unemployment insurance as if it’s a form of welfare.
It IS welfare.
Only the first 26 weeks of unemployment is actually a self-insurance program paid for by employees in the form of lower wage offers from their employers, compulsorily taxed (through both direct taxes and compulsory insurance payments) into an alleged fund that is then disbursed when one loses their job.
The entire rest of the so-called "EUC" benefit - second and third tier - is indeed WELFARE. It is a transfer payment from the general fund of the government to a person, not a payment of insurance upon loss, but rather a direct transfer.
Two years of these payments - 99 weeks - is more than enough. Indeed, that is a sufficient amount of time for someone to earn an associates degree in a local community college - if they bothered to do so.
But through the last year we have seen repeated "sob stories" of people who are on their last dollar as the EUC welfare ceases. And what do all of these sob stories have in common?
$100 cell phone plans, $75 cable television and Internet bills, $300 electric bills blasting air conditioning into the summer heat.
You would think that when someone loses their job they would immediately cut back on these non-necessary purchases. Purchases that nobody needs. You and I grew up in a world without cable TV, cell phones and in many cases (including mine) air conditioning.
That's five hundred dollars a month in many of these households that is being spent unnecessarily.
Oh sure, it's nice to have those things. And when one has a job, one can afford those things. But when one does not have a job it is not government's responsibility to cover the comforts that employment brings to one's personal situation.
Wake up Mr. President.
Your policies, just as those of the previous President Bush, are the reason there is no capital formation in this country.
YOU, ALONG WITH BERNANKE AND CONGRESS, HAVE INTENTIONALLY AND WILLFULLY DESTROYED CAPITAL FORMATION IN THE UNITED STATES WITH YOUR INCESSANT BAILOUTS AND HANDOUTS.