In the beginning, Obama nationalized the auto industry. He took control of General Motors and Chrysler. The President, just a few weeks into his first term, nationalized the two auto companies who were facing financial hardship. He appointed Steven Rattner as Auto Czar in February of 2009. The Administration pumped $85 billion into the industry. The Czar closed dealerships, (mostly the ones owned by Republicans), cancelled models, and ran the day-to-day operations of the companies. Saturn was closed, as it was a non-union experiment of GM. Bonds were cancelled, as was the company stock. Controlling ownership was given to the United Auto Workers union. This was the ‘taking from the rich and giving to the workers’ mentality that set the stage for the rest of Obama’s first term. Because bonds were said to be only for the ‘rich,’ widows who had financial advisors that put their retirement into auto bonds for income to live on, were financially wiped out by the Administration. As of 2013, GM still owed $9.7 billion on the loans from the government.
Let’s not forget about healthcare. To be sure, the system needed some changing. Healthcare costs grow much faster than the rest of the economy. Under the Obama socialist system, the Federal Government always knows best. Now healthcare costs have skyrocketed way out of control. Because all employees who work over 30 hours a week automatically receive employer sponsored healthcare, many good workers have had their hours cut to avoid the cost. Many workers are required to multiple jobs to support their families and pay for their own healthcare. The standard of living for many of these middle class workers has decreased. To be fair, many of the poor who previously had no healthcare, now have subsidized coverage paid for by many of those who lost their coverage. The bottom line is this; The U.S. economy has to absorb these costs and loss of productivity.
Obama came up with a method of running America without any oversight from Congress. While his Cabinet had to be confirmed by Congress, and although they worked for and at the pleasure of the President, they still had to answer to Congress. Obama appointed Czars for all the areas he was interested in. These people were appointed by the President, paid by the Executive branch, received no confirmation from Congress and only reported to the President. These Czars replaced many of the functions done by the Cabinet members, but without any oversight. Czars were appointed to oversee the Middle East, run the auto industry, oversee labor law, make environmental decisions, monitor energy usage, and many more areas.
This Administration, like those before, has entered trade deals with foreign countries that has the effect of moving manufacturing offshore to foreign plants. The finished products then return to the U.S. for consumption by the American market. Republicans favor this system because it produces larger profits for the manufacturers, who contribute to their campaigns. Democrats favor this system because the pollution the manufacturing generates is sent offshore. This produces campaign contributions from the environmental lobby. Of course, the loser is all the middle class jobs that left the country.
The second term of Obama has been one of increased regulations. The Administration has used the regulators to control all aspects of American life. My favorite item is the curly light bulbs, but that item was given to us by the Bush Administration, not Obama. The Obama folks have decided to regulate carbon dioxide. In case you don’t know, that’s the stuff we exhale as we breathe. It is also what plants use to grow. In case you have forgotten, green plants produce oxygen so humans can live. The regulations are so severe, manufacturing has abandoned the United States for more business friendly countries.
American taxes are the highest in the industrialized world. Not only is our corporate tax rates extremely high, but foreign countries have drastically reduced their taxes. The rest of the world has learned tax lessons from the United States at the exact time America has forgotten what low taxes produce.
The government has a real fetish about energy. Obama has done all he can to stop America from producing enough energy to become self-sufficient. The Administration would rather we buy oil from our ‘friends’ in the Middle East. He has blocked drilling on federal land, and has drastically increased regulations on the industry to make it more difficult for them to produce what America needs. Obama has refused to approve the Keystone Pipeline, preferring to see the Canadian oil sold to China rather than be used in North America. The Administration has declared war on coal. The environmental regulations on coal usage his driving the industry into oblivion. Obama does favor some energy production. Wind and solar do get his approval.
Interest rates are extremely low. The Federal Reserve has been pumping billions into the economy on a regular basis. Unfortunately, most of this money has been going into the stock market rather than growing the economy.
There isn’t anything this Administration doesn’t think they can do better than any individual. In other words, government knows best.