Thursday, January 21, 2010

White House Still Doesn't Get It

The Obama White House always seems to have to demonize someone. For the past ten months, that someone has been the insurance industry. Now that Massachusetts voters have shut the door on the incredible nonsense known as "health care reform," the Obama White House has now decided to demonize the financial industry. Obama's $ 90 billion tax on the industry plus demonizing rhetoric from the President and his lackeys is the new strategy.

Hate mongering and ill will is the same old White House strategy. This will not get the economy going. This is not a "jobs" program. In fact, it will reduce jobs. It will reduce the interest and incentive on the part of the financial system to provide much needed credit to Main Street. Wall Street can, in the end, pay the $ 90 billion tax. But, the cost will be born by further job losses and continued restriction on credit to American business. The White House strategy is an "anti-jobs" approach. That has been the consistent way with the Obama Administration and it continues.

To make matters worse, the President is pressing for a new financial strangulation (oops, I mean regulation) regime that "reduces the risks" taken by financial companies. One sure way to reduce risk is to quit lending to American business. That will reduce risk. In fact, that is largely what American financial institutions have been doing since Obama took office.

The White House still doesn't get it. If you want the private sector to increase job offerings, then you need to try to put in place policies that encourage job formation not policies that discourage job formation. Everything out of this White House discourages business, discourages entrepreneurship, and ultimately, reduces job creation.

Given, Obama's background as a community organizer, it is not surprising that he is unfamiliar with ideas that could encourage business to expand jobs. Ideas like lower taxes, less regulation are not appealing to this White House.

So, in spite of the Massachusetts vote on Tuesday, look for this White House to continue its war on business and its war on the American middle class. Heaven help you if you are looking for a job in the private sector. Maybe after November, the environment will change. Not likely until then.

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