by Scot Mussi | Nov 13, 2009 | News and Updates, Uncategorized
Just when you thought the federal government had too much on their plate comes news that the Federal Reserve will implement new rules prohibiting banks from charging overdraft fees without consumers’ consent.
I always figured that a bank charged a stiff penalty for insufficient funds, so that in the future, I wouldn’t withdraw more money than I have. Silly me. But hey, what about the fees charged by banks for using their ATM rather than the bank in which my money is in? I just figured that was a convenience fee, but if we’re setting new rules, let’s kill that one, too. Oh yeah, the minimum monthly balance I have to keep in order to enjoy a better savings rate–strike it down!
When the bank rules are done, can Chairman Bernanke please turn his attention to the late fees at Blockbuster?
by Scot Mussi | Nov 4, 2009 | News and Updates, Uncategorized
White House spokesman Robert Gibbs told reporters this morning that the election results were not a referendum on President Obama. He said, “People didn’t go to the polls to register support for, or opposition to, the President.” He said the elections were purely debates over local issues. Gibbs added that the election results will not “spook” members of congress from supporting the president’s agenda.
If the official White House line is, “Hello, we’re tone deaf,” congressional Democrats have real problems on their hands. The Bush years are over. And while the cratered economy, high unemployment, and pessimism everywhere aren’t a direct result of anything Obama did before he was elected, his solutions since being elected are failing – miserably.
In 2008 more voters than not were reluctantly open to the TARP, the stimulus, the idea of health care reform, the idea of capping greenhouse gases, and the like. It appears today that voters have seen enough. Bigger government isn’t working, in practice (high unemployment or in theory. Senate Democrats yesterday said they didn’t think they pass their health care reform before the end of the year. This bill was supposed to pass in July.
It’s time for the Democrats to reassess. If there’s one thing more certain than a rising morning sun, it’s that incumbents like to be reelected. So, no matter what the White House line is, national Democrats this morning will feel much more comfortable telling the president to slow down.
by Scot Mussi | Oct 29, 2009 | News and Updates, Uncategorized
In the Sunday, Oct. 17 edition of the Arizona Republic there was a column on “creating” the new Arizona economy. It made the usual argument that we don’t subsidize enough cool stuff to have a “knowledge” economy, but that wasn’t the good part. Along side this story was a sidebar developed by the Morrison Institute at ASU titled, “Milestones in helping Arizona build its economy, 1991 – 2009. Here are the milestones (my description in parenthesis).
ASPED (public/private blueprint for economic development strategies)
State Job Training Program (government job training program)
Proposition 301 (sales tax increase for education funding)
Bioscience Roadmap (study by Flinn Foundation to advocate biosciences)
“Angel” Tax Credits (legislative program to subsidize private investment)
Science Foundation Arizona (public/private program to fund research grants in high tech areas)
Moving Arizona Forward (ASU study focusing on increased education spending)
WIRED (federal government program to spur high-tech businesses)
STEM (A Science Foundation program to support education)
Solar Energy Tax Credits (legislative program to subsidize the manufacturing of renewable energy components)
Look at all the government programs that built Arizona’s economy. I love how ASU and Flinn Foundation studies make the list, but 7 consecutive years of tax cuts in the 1990’s don’t. I love how the solar energy tax credit bill makes the list (the bill was signed on July 10 OF THIS YEAR and therefore hasn’t had — couldn’t have — one iota of impact on Arizona’s economy) and the 2006 personal income and statewide property tax cuts don’t.
Don’t be insulted if you are one of the thousands of companies who took risks, invested your own capital, produced goods or services, and otherwise actually built Arizona’s economy.
Forget that. Feel free to be insulted.
by Scot Mussi | Oct 29, 2009 | News and Updates, Uncategorized
The White House is cheering today’s news that GDP last quarter was up 3.5%. But they’re also cautious not to get too excited. They know they goosed the numbers a bit.
It’s no secret that the government can artificially boost economic activity. Take, for example, the cash-for-clunkers program. Auto sales (contributing 1.66 percentage points of the 3.5% GDP growth) jumped in July and August in large part due to the fact that the government handed out $4,500 to people to buy new cars. It looks like auto dealers had some false hope of a turnaround since September auto sales are down 10%. It seems a lot of people who were going to purchase a new car anyway, simply did so during the cash-for-clunkers time period. Those who couldn’t afford a new car then still can’t. The net effect is that government artificially boosted demand for new cars for two months, destroyed many usable cars in the process, and cost taxpayers $3 billion for its work.
Another factor that contributed to the GDP increase (about .5%) is home building. Part of the significant 23% jump in new home building last quarter comes from the federal homebuyer’s tax credit. We really don’t know for sure if the sector is going to turn around or not because government artificially inflated this sector as well.
These programs don’t do anyone any favors. If auto dealerships or home builders need to close or consolidate, the sooner that happens, the better. Federal programs like these only prolong the pain.
by Scot Mussi | Oct 6, 2009 | News and Updates, Uncategorized
When the GOP had control of the WH and Congress, fissures occurred in the Party over issues like immigration, government spending, and the wars in Iraq and Afghanistan. Divisions in the Party aren’t always bad because a Party that stands for something is by nature going to cause some strong disagreements. And what’s the use of belonging to a political party that doesn’t stand for something (or tries to stand for everything)?
Whether it’s healthy is one question, but what influence peddlers do in response can be quite interesting. Filmmaker Michael Moore as reported in Politico:
“To the Democrats in Congress who don’t quite get it: I want to offer a personal pledge. I – and a lot of other people – have every intention of removing you from Congress in the next election if you stand in the way of health care legislation that the people want,” Moore told supporters of women’s groups and unions gathered at the headquarters of the government watchdog group Public Citizen. “That is not a hollow or idle threat. We will come to your district and we will work against you, first in the primary and, if we have to, in the general election.”
Moore issued a not-so-veiled warning to Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee and an opponent of the so-called public option, though not by name, asserting that his movie could be a rallying point for people across the country – including in Montana – to work to defeat Democrats who opposed the public option.
“You’ve made a serious mistake,” he warned Baucus.
Mr. Moore’s “pledge” didn’t influence Chairman Max Baucus and four other Democrats on the Senate Finance Cmte, who last week joined Republicans on the committee to shoot down the ‘public option’ on a 8-15 vote.
Read more: http://www.politico.com/news/stories/0909/27703.html#ixzz0SWqnTcm0
by Scot Mussi | Sep 29, 2009 | News and Updates, Uncategorized
In yet another poll on the 2010 Governor’s race, we found this nugget:
Seventy-six percent (76%) say the unwillingness of politicians to control government spending is a bigger problem in the state than the unwillingness of voters to pay enough in taxes. Just 17% say reluctant taxpayers are the bigger problem.
Arizona voters are very astute. State spending increased 57 percent from 2004 to 2009, greatly exceeding our growth in population plus inflation (36 percent). With revenue below 2005 levels, it’s easy to see how the state’s deficit grew to over $3 billion. The message from the survey participants is clear: get spending under control before seeking a tax hike.
Is anyone at the Governor’s office listening?
The Rasmussen Poll also shows that former Governor Fife Symington is in the running, polling the same as the current governor:
Highlighting Brewer’s unpopularity even in her own party is the fact that Symington, who resigned as governor in 1997 following a fraud conviction, polls about the same as she does at this early stage. Symington’s conviction was later overturned on appeal, and he was pardoned by President Clinton in 2000.
To see all the Rasmussen Poll results, click here.
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