GOP Tries to Kill Economic Recovery

The only good news is that the economy is virtually too big for any single Congress (the 2 years between House elections) to do too much damage.

But here is the bad news.

The Tea Party wants to wind down the U.S. Export Import Bank.  The Export Import Bank has been around since 1934.  It helps finance the export of U.S. manufactured products which creates manufacturing jobs in the U.S.  It helps businesses of all sizes.  For big firms, the primary thing it does is create a level playing field with companies located in other countries with export import banks that support their competitor's exports.  But make no mistake, if the U.S. big companies did not have access to the U.S. Ex-Im Bank, they would lose U.S. sales and cut U.S. production and U.S. employment.  For small firms, the U.S. Ex-Im Bank is crucial to their being successful at exporting because they have no ability to assess the creditworthiness of their potential customers.  Ex-Im does a good job assessing creditworthiness, its default rate is only 21 bps and it produces $400 mm a year in net profits for the U.S. taxpayer.  Why does the Tea Party want to shut down a part of the government that produces profits to pay for other parts of the government?  And, at the same time, the Tea Party does not want the loss producing U.S. Post Office to close rural Post Offices, require central post boxes where it makes sense (like condo developments) and end Saturday delivery.

Ever since the Eisenhower Administration started the inter-state highway system, Federal & State gasoline taxes have paid for Highway maintenance and repair.  But Congress has refused to raise the gasoline tax for over 20 years.  Now the Highway fund is running out of money and Congress cannot find a solution to keep it running mostly because the Tea Party doesn't want to raise the gasoline tax or impose a mileage tax that would help spread the burden to more efficient fuel consumption vehicles.  If I owned a Hybrid, I would not want the latter because I would be getting a free lunch.  But there aren't many hybrid owners in Tea Party land, so you would think they would support ending this free lunch.  Anyway, if you work in road construction, I hope you have been saving for a rainy day because you are about to be laid off when the funding runs out and I would not count on a long term solution because the Congress is to dysfunctional it cannot even run itself.

I have pointed out the idiocy of some of our corporate tax policies.  But even more companies are running to change their incorporation to tax havens because it is becoming a huge source of competitive disadvantage.  Dave Camp, the out-going GOP Chairman of Ways and Means, has developed a tax reform to address this, but John Boehner called it Dead on Arrival, so it has gone no where.  Tax Policy starts in the House Ways & Means Committee.  That is in the Constitution or someplace equally rigid.  If the House of Representatives will not address improving the way the country works, the country will not improve and that will mean employment will be lower than it would be otherwise, no matter what the Federal Reserve does.  Fiscal and Tax Policies effect employment.  Fiscal and Tax Policies effect the revenue the country has for everything including National Defense.

I can barely read the newspaper these days, but I struggle on.  There is so little progress these days on any issue in the world, it is very discouraging.

The Economist had an interesting article on Pakistan/Afghanistan.  A U.S. General once remarked, "We can't defeat an enemy with a free home base in a country we can't go into."  He was referring to the Taliban hiding unmolested in Pakistan.  Now Pakistan is upset that the Taliban they are going after in the lawless territory are using Afghanistan to hide from them and complaining the Afghan are doing nothing.  Perhaps both will realize that if you don't impose law & order everywhere in your country, you lose control over your country.

This is something the Ukrainians understand and I hope they are successful at eliminating the Russian thugs in Eastern Ukraine who seek to sow violence.  Why Putin would think this is a good idea baffles me because he already has a Chechnya problem and you would think he understood chaos within your borders is not something that you can allow.

And as for these kids on our border.  I love our immigrants and believe they add greatly to our vitality as a country.  But there can be no mass migration and, in particular, minors who need education cannot be allowed to enter without parents.  They will not contribute to society until they are educated and they will be wards of the state until they are educated.  Their parents at home are irresponsible for allowing or forcing them to take the treacherous journey to the U.S.  We should just be sending them home, but Congress needs to change the 2008 law that Bush II signed to allow that.  Congress agrees to that, but as usual, they cannot pass even a bill they all agree on.

I hate Congress.  I hate the Tea Party.

I need a good movie to go to.