The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Why the Senate should pass the unemployment benefits extension.

Posted by iusbvision on June 26, 2010

I know all the arguments for cutting off the benefits and under a normal recession under normal circumstances I would agree. This recession is different and for now the old rules do not apply and I will explain why.

While it is true that most people find jobs shortly before their benefits expire this recession is so different that this rule doesn’t really apply.

While it is true that deficit spending is at an all time high, cuts should be made in government to pay for this

So what is different?

First of all this recession is all but entirely government orchestrated.

It was government that abused the CRA to pressure banks to make bad loans.

It was the Federal Reserve who kept interest rates artificially low for political purposes.

It was government who enforced that idiotic mark to market rule.

It was government who put all of those corrupt Democratic appointees in Fannie Mae and Freddie Mac.

It was Fannie and Freddie who bought every lobbying firm in DC to keep it from being opposed.

It was Fannie and Freddie who bought up bad loans as many as they could find and issued government backed mortgage securities on those bad loans.

It was government who started nationalizing business, made war on bond holders, engaged in Chicago style regulation , started bribing members of Congress with our money and passed bills like ObamaCare that put a huge tax on every employee hired.

It is government that destroys confidence and raises fears of regulatory uncertainty with the ridiculous new financial regulation bill, cap and tax etc etc.

It is government who blocked mortgage reform in the Senate time and time again (Democrats).

It was government who destroyed confidence with the stimulus package failure.

It is government that is arbitrarily trying to stop offshore drilling.

It is government that is actively preventing states and foreign countries from helping with the oil spill.

It is government that is threatening to let old tax cuts expire; undermining confidence.

It is the cost of government that is sending wealth and production overseas.

It is government who has employers and investors scared to death. Investors don’t want to invest here and employers are afraid to hire and when jobs do open many more people apply for them than can ever be hired.

It is government employees who make between 30-300% more than their private sector counterparts so that government has been largely shielded from the recession.

As sure as BP must pay the bill for the oil cleanup it is government that must pay for causing this financial crisis. Not enough jobs are being created to keep up with people entering the economy now.

Confidence is not going to even start trickling back in till the GOP has the Congress so that it can stop Obama and the Democrat leadership cold. Unemployment benefits are going to have to be extended at least until that time. Confidence and thus hiring, production and investment cannot begin in earnest until the world knows that the agenda of this administration and Nancy Pelosi is effectively stopped.

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