Thursday, April 5, 2018
Attacks on Amazon Threaten Middle Class Wallets
Friday, September 30, 2016
Is Trump really better than Hillary?
![]() |
| imgflip.com |
Friday, August 19, 2011
Obama’s attacks on corporate jets cost jobs
One of President Obama’s frequent talking points is about the wastefulness and elitism of corporate jets. In a June 2011 news conference, CNS News quotes the president as saying, “I’ve said to some of the Republican leaders, you go talk to your constituents, the Republican constituents, and ask them are they willing to compromise their kids’ safety so that some corporate jet owner continues to get a tax break.”
In contrast to the president’s statements, corporate jets are a valuable business tool. Many factories and business deals are found in far flung areas of the country that are not served by airlines or, after years of airline downsizing and bankruptcies, have only very limited service. While it is easy to find direct flights from Atlanta to every major metropolitan area in the country, smaller cities are primarily served by regional airlines and require layovers and connecting flights which add significantly to the length of the trip. This also increases the chance of delays and canceled flights.
Parking, security screening, checking and waiting for bags, and finding transportation all add to the nonproductive time when traveling through major commercial airports. It can take a traveler over an hour to get out of Atlanta’s Hartsfield-Jackson International Airport and the airlines typically advise travelers to arrive at least two hours early.
With the current federal debt crisis, Congress is also considering cuts to the essential air service program. Under this program, the federal government subsidizes flights to small cities that would otherwise be unprofitable to airlines. If airline service to these smaller cities is dropped, it would mean that business travelers would have to fly to the nearest city served by an airline, then rent a car to continue their journey. This would mean a dramatic increase in the time required to make the trip. In the case of deliveries of parts and tools needed to keep a factory running, it might mean that the plant would be shut down for days until the shipment could arrive by ground.
Corporate aviation is a commercial lifeline to many small communities around the country. Hartwell and Elberton, both in northeast Georgia, recently became the sites for new plants for SD Automotive Group and Moeller Tech Plastics respectively. These towns are over two hours from the nearest commercial airport, but they are served by Elberton’s general aviation airport with a 4,000 foot runway. Tifton is home to a new American Textile Company plant. The South Georgia city is an hour drive from Albany, which has only three airline flights each day, or a three hour drive to Atlanta’s international airport. Tifton has its own general aviation airport, however, with a 5,500 foot runway that is suitable for even larger corporate jets. These are examples of plants that might locate in urban areas, adding to urban congestion and rural unemployment, if small airports and corporate jets were not available. Time is money.
Georgia is also home to Gulfstream Aerospace, a manufacturer of high-end business jets that is located in Savannah. When sales of business jets plummeted after Barack Obama became president and criticized auto executives for using their company airplanes, Gulfstream, like many other aircraft builders, was forced to lay off thousands of workers.
Georgia’s fixed-base-operators are more affected by the downturn in aviation. Fixed-base-operators (FBOs) are private air terminals that service corporate jets and other general aviation airplanes. When corporate jets don’t fly, these companies, such as the three FBOs at DeKalb-Peachtree airport in Atlanta, lose hundreds of thousands of dollars in revenue from fuel sales and maintenance. When FBOs don’t make money, it inevitably leads to the layoff of workers.
The effect trickles throughout local economies when corporate jets do not fly. When fewer passengers and pilots fly into a community, local businesses suffer as well. There are fewer guests at local hotels and fewer diners at local restaurants. Since the old saw about more business being conducted on the golf course than in a boardroom is still true, local golf clubs would also feel a pinch.
President Obama is offers a false choice between tax breaks for the rich and safety for children. The real choice is between allowing companies to use airplanes as a legitimate and valuable business tool or stigmatizing corporate jets that bring jobs to Georgia.
Photo credit: David W. Thornton
Read this article on Examiner.com
Saturday, July 17, 2010
Obama's war on jobs

It is much easier for the government to screw up the economy than to fix it. This is a fact that that President Obama is probably coming to appreciate as he reaches the close of his second year in office. Although Obama almost certainly means well, the effects of his policies are what count. Overall the effect is similar to what would happen if President Obama had declared war on the national economy.
The financial reform legislation passed this week is only the most recent anti-business legislation passed by the Obama Administration. The new law guarantees future bailouts by giving the government the right to seize businesses to prevent their collapse. It also establishes new layers of federal bureaucracy to create new rules for banks and financial companies (with the notable exception of auto finance companies). The new law adds costs of compliance to business and makes credit harder to obtain in the midst of credit crisis while simultaneously failing to address the problem of Fannie Mae and Freddie Mac, the quasi-government entities widely credited as being a root cause of the sub-prime mortgage crisis.
The war on jobs began shortly after Obama took office with the passage of the stimulus package. Obama claimed that the passage of the American Recovery and Reinvestment Act would keep unemployment below 8% (http://www.time.com/time/business/article/0,8599,1910208,00.html). In reality the spending package spurred unemployment to continue rising to the 10% range, where it remains today. In Georgia, the unemployment rate has been even higher than the national average at over 10% (http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST13000003).
The number of jobs created by the stimulus is disputed, but the fact is that when stimulus funds run out, so do the stimulus jobs. Jobs created by the $787 billion stimulus reportedly cost an average of $117,933 per job to create (http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1857) while not creating a lasting boon to the economy.
The second assault on the economy was in the form of government interference in the auto industry. The Obama Administration pumped billions of dollars into General Motors and Chrysler in an unsuccessful attempt to prevent the companies from restructuring in bankruptcy. During this process, Obama not only interfered with the control of private companies, he also short-circuited the bankruptcy process and contract law. Obama’s bailout deal placed unions above secured creditors of the companies (http://www.cbsnews.com/stories/2009/05/07/politics/otherpeoplesmoney/main4997900.shtml, http://online.wsj.com/article/SB124109550079373043.html). Ultimately, the Obama Administration even forced the CEOs of both companies out and gained the right to appoint members to the boards (http://www.worldcarfans.com/109050119091/chrysler-bankruptcy-announced-by-obama---ceo-nardelli-to-step-down, http://www.washingtonpost.com/wp-dyn/content/article/2009/03/31/AR2009033101521.html). When the US government arbitrarily usurps contract law, it makes businesses less likely to engage in contracts that they are not sure will be honored. This ultimately costs jobs.
The third assault against the job market was the passage of Obamacare. Like the new finance reform law, Obamacare requires many new costly reports, including the new requirement that businesses issue a 1099 to every business or individual from whom they purchase more than $600 in goods or services (http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/index.htm). Additionally, Obamacare is already health care more expensive to businesses (http://www.businessinsider.com/henry-blodget-obamacare-already-jacking-up-health-insurance-costs-for-businesses-2010-3). As a result, businesses are cutting benefits to workers and hiring as few new employees as possible. Some companies are also considering additional layoffs to cut the new costs.
The next attack on jobs will likely come soon. It could be an attempt to ram through the carbon cap-and-trade tax bill that will dramatically increase energy costs. Hopefully, there will not be time to pass this bill before the election.
More likely, it will come in the form of the expiration of President Bush’s tax cuts. These across-the-board tax cuts that affected all Americans are set to expire at the end of 2010 unless Congress acts. If the cuts expire and taxes increase, it might suck as much as a $1 trillion from an economy that is struggling to recover. In spite of the fact that Democrats usually refer to them as “Bush’s tax cuts for the wealthiest Americans,” taxes were cut for all American and if they expire everyone’s taxes will increase (http://www.smartmoney.com/personal-finance/taxes/how-the-expiring-bush-tax-cuts-affect-you/). There will be less money for consumers to spend and less money for businesses to hire new employees.
One possible cause of these anti-business and anti-job policies is that President Obama doesn’t have a single person in his administration that has ever run a business (http://www.weeklystandard.com/Content/Public/Articles/000/000/016/619dvjlm.asp). They don’t know that their ideas are hurting the job market because they have never run a business. Obama appointees come almost exclusively from government and academic circles. They don’t understand free markets and have no idea what they are doing. The uncertainty derived from sweeping anti-business reforms certainly has a chilling effect on the economy as business owners hunker down to see what will happen next.
Sources:
http://www.time.com/time/business/article/0,8599,1910208,00.html
http://data.bls.gov/PDQ/servlet/SurveyOutputServlet?data_tool=latest_numbers&series_id=LASST13000003
http://knowledge.wpcarey.asu.edu/article.cfm?articleid=1857
http://www.cbsnews.com/stories/2009/05/07/politics/otherpeoplesmoney/main4997900.shtml
http://online.wsj.com/article/SB124109550079373043.html
http://www.worldcarfans.com/109050119091/chrysler-bankruptcy-announced-by-obama---ceo-nardelli-to-step-down
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/31/AR2009033101521.html
http://money.cnn.com/2010/07/09/smallbusiness/irs_1099_flood/index.htm
http://www.businessinsider.com/henry-blodget-obamacare-already-jacking-up-health-insurance-costs-for-businesses-2010-3
http://www.smartmoney.com/personal-finance/taxes/how-the-expiring-bush-tax-cuts-affect-you/
http://www.weeklystandard.com/Content/Public/Articles/000/000/016/619dvjlm.asp
July 17, 2010
Bedford, MA
Photo credit:
graur razvan ionut
http://www.freedigitalphotos.net/images/view_photog.php?photogid=987
