The Rich are Getting Richer and While the Poor Stagnates

On my previous article, I talked about how President Obama wanted to implement the expiration of tax cuts for the wealthy. The tax cut shall only remain to individuals or couples who at earn at most $250,000 a year. All else in the society will be subjected to full tax payments especially business owners. Republicans argue that the term what the Pres. Obama has called the “wealthy” are in fact small business owners. These owners are the ones who give numerous jobs to people and giving them the burden of tax will only hinder recovery and result in more unemployed citizens.

Donna Brazile, a known democratic strategist, argues that extending tax cuts to low-earning families would be very beneficial and may produce favorable results to the economy in the long run. She also emphasized that for the last couple of years, the distribution of wealth hasn’t really been balanced at all. The top 1 percent of the population gained a significant increase in their income and wealth while the bottom half hasn’t got any increase at all. In simple terms, the wealthiest benefited and gained more income while the poorer ones remained poor.

She further emphasized the inequalities in income which is a result of poorly decided and irrational government bills. The richer people received lesser taxes which enabled them to get larger incomes. The low to mid income people, on the other hand, never really got any boost on their earnings. Figures showed that the income of the top 1 Americans nearly quadrupled for the last 3 decades as opposed to the lower and middle class Americans barely gaining at all.

It is intriguing to know that the top 1 percent of earners actually got a 74.6 percent jump for the last decade. This is significantly huge compared to the lower groups who only managed to receive not more than 20 percent in increase. To put things into perspective, the rich Americans get more and earn more while those who are near and below the middle-class group haven’t gotten any improvement in their earnings at all.

The recession of today is clearly a result of the wrong decisions being done by the government in imposing tax cuts. A capitalist system is very much prevailing and where rich capitalists are taking control of most of the wealth of the nation. We can clearly see what happens when financers and creditors of today hold or freeze their funds. Consumer spending will be greatly reduced and the economy will be put on a stand still. It is up to Pres. Obama and his administration to find ways in ensuring the equal distribution of wealth among its citizens. We should avoid a capitalist system as only a handful can benefit from it.

Protecting the Men and Women of the BP Oil Spill Cleanup Effort

Disasters and tragedies are always unpredictable and can impose a long term effect on entities it has affected. Behind every disaster, there are those men and women who are willing to sacrifice their lives in order to save more and lessen the problem. The September 11 attack on the World Trade Center for example has prompted numerous citizens to rescue people trapped under the debris and help during the cleanup effort.

The year 2010 has been rocked by many disasters and accidents which have already claimed thousands of lives. One of the destructive and most significant is the Deepwater Horizon oil spill or more commonly known as the BP oil spill. On April 20, 2010, the Deepwater Horizon drilling rig explosion has caused the largest offshore oil spill accident in the United States and probably one of the worst oil spill incidents in the world. Currently, the incident has already claimed 13 lives mostly from the original explosion and also 17 people were reportedly injured.

With the possibility of further destroying marine wildlife and ecology, it is now the job of the cleanup workers to lessen the impact of the oil spill and eventually take control of the situation. A recent report disclosed by the Louisiana Health Department has indicated that about 324 people of whom 241 are directly involved on the actual oil spill cleanup itself have reported to suffer from various illnesses. These illnesses were thought to originate from chemicals and oil dispersants used for the cleanup effort. It is quite alarming that a lot of fisherman’s and other workers have offered their assistance without receiving any assurance of their safety.

A report has also pointed out that these cleanup workers are in fact working with dangerous chemicals without having any respiratory protection. There is indeed a high probability that every worker working in the cleanup effort will eventually incur future health problems. With the symptoms already seen from various workers, the BP has continued to deny requests for respiratory protection gear from workers. This prompted various

Democratic senate candidate Roxanne Conlin launched an online campaign which will generate enough signatures for a formal letter that will be sent to the President. The letter contains a proposal unto developing a provision that will require cleanup workers to use protective wear such as gas masks and skin cover. She aims to protect the thousands of workers who are in danger of acquiring chemical-produced diseases. Thousands of workers have sacrificed their lives in cleaning the mess of other people. They should be properly compensated and unconditionally supported at all cost.

A New Bill to Punish Violators of the Lobbying and Disclosure Act of 1995

Have you ever wondered what happens to politicians or legislators who have lost during the elections? Do you have a hint of what other possible options can they undertake so they can still have a flourishing political career? Well actually, politicians who lost during the elected may opt to become a lobbyist. A lobbyist is a political activist who is paid by various groups to influence legislators regarding bills or laws that are being supported by that particular group. Their job is primarily is to convince legislators to support or to ignore certain laws depending on the requirement of the interest group.

On the year 1995, the federal government passed the Lobbying and Disclosure Act of 1995 in order to promote accountability and to regulate the influence of Lobbyists on the government of the United States of America. The law has mandated all performing lobbyists to register and disclose all their lobbying actions to the House of Representatives and to the Senate as well. Any forms of non-compliance shall automatically result in fines amounting to over $50,000.

Just recently, the House of Representatives passed on a house bill which will thoroughly investigate and rightfully punish all the violators of the Lobbying Act. It has been observed that a lot of lobbyists are doing prohibited acts with regards to lobbying and are getting away with it. Data from the Senate Secretary has revealed that there are about 8,729 possible violations with regards to the Lobbying and act and only 3 have been given enforcement actions. It is quite alarming to compare the very high number of violations over the much lesser number of prosecutions made.

Mary Jo Kilroy, the one responsible for the new bill, indicated that the Attorney General will be creating a task force that will taking over and implementing the investigations that are targeted to illegal lobbying practices. It will also impose fines for offenders which will start for a little as $500. Sen. Michael Bennet of Denver Colorado introduced another bill which aims to ban former members of Congress from entering the Lobbyist career. The tough dilemma faced by the bill is with regards to defining who should be considered a lobbyist.

The House and the Senate is still having difficulties distinguishing between a lobbyist and a legitimate influential person. It also revolves around the issue of bribery. There in fact exists widespread bribery especially when any particular law or act is being decided. The good side of the law is that it promotes better transparency and accountability. It ensures that our legislators aren’t only thinking of a particular interest group but instead for the whole nation.

The Obama Administration: To Spend or Not to Spend?

The present events suggest that America is faltering and is losing so much money fast. The economy has become unstable and financial institutions are either holding their funds or are declaring bankruptcy. The American middle-class for example have taken the most impact as job scarcity is seen everywhere. Businesses and even the government departments themselves are massively laying-off workers. Finding a job today is just like finding a grain of rice in a sandy beach. And the results are definitely shocking as America’s future is put at stake.

There is a big decision that Pres. Obama has to make and that is if the government should spend more or lessen spending. There are certain points that we should consider. First is that job growth is stagnant and the unemployment rate is almost near 10%. The number of people who have remained unemployed for the last 6 months have almost reached 7 million and more are getting discouraged to seek for one. The foreclosures of banks have exceeded last year’s figures and mortgages are on a record low. Indeed, the Obama administration needs to take the right decision now to at least alleviate the problem.

Have you ever heard of the economic stimulus fund which amounted to $787 but now has ballooned to $862 billion? A lot of people actually opposed the idea of a stimulus indicating that it only made the budget deficit bigger. Pres. Obama’s economic recovery strategy is based on John Maynard Keynes strategy which calls for more government spending to battle recession. More spending by the government would mean more cash that can be used by both consumers and businesses in doing economic activities.

But the problem is people are already convinced that any further spending by the government will only hurt the nation. In a country where the national debt has already reached $13 trillion, citizens have already developed a mindset where more government spending will only add up to the budget deficit and will only put more burdens to its citizens. In fact, a study has showed that two-thirds of the respondents opposed the idea of a second stimulus package while 53% said the country is better off without the first stimulus.

It is indeed a tough and complicated task by Pres. Obama and his administration to make people believe that they are doing the right thing in helping America get out of the recession. Pres. Obama and his team of economic advisers are faced by the dilemma of balancing in order to avoid both overspending and under-spending. In order to gather that needed support, the government should first provide a rational and reasonable explanation on how will the government act to put the nation back to economic recovery. And if the government is really sincere in helping the nation, they should first cut and avoid projects and earmarks that are not really beneficial to the American people.

The Fall of a Superpower May Be Near

For decades already, the United States of America has been widely considered the lone superpower of the world. With a technologically advanced military, a sprawling economy where most of the top companies and financiers are based, a high-profiled society and a very influential government, the US is indeed a superpower. In almost every global event, the US always has taken its stand and has introduced and influenced its values and beliefs to other foreign countries.

Today, the lone superpower in the world is in danger of faltering and losing its influence. And though it is hard to imagine something so huge and so complicated suddenly falling apart, the collapse may in fact be accelerating at a pace that tomorrow may spell doomsday to this mighty nation. A computer scientist name Christopher Langton believed that superpowers or great countries are complex systems. All their composition operates in harmony and equilibrium.

But that equilibrium is often threatened by critical risks. These risks, if not taken into consideration, may shaken the system and eventually destroy it. In present situation, the US is indeed shaken by the recent financial crisis which caused many financial establishments to fall or to limit spending. But the real problem lies on the increasing budget deficit. Did you know that the US already has $US1.47 trillion in budget deficit for the year 2010 alone.

In the span of about 10 years, the federal debt has almost reached 66 % which is twice the number 10 years ago (32 %). As what the Congressional Budget Office has stated, the federal debt is projected to rise above 90 % of GDP by the year 2020 and reach 146 % by 2030 and 344 % by the year 2050. These figures are staggering as trends all point to a future having immense federal debt.

Another thing to consider is that about half of the federal debt owed by the US now is being owned by foreign financers or creditors. China, which is now considered the second largest economy in the world, may in fact be the toughest rival that the US will face and possibly a new candidate to replace the US as a global superpower.

The truth is the US is already facing a bleak future. Without the drivers for change, the US is in perfect course to lose all its resources and its influence. The question is that are we ready to face the reality that someday the US will eventually lose steam and be overtaken by other potential superpowers. In the near future, we may be seeing a sudden change in the balance of power.

More War Funds Spent for Troop Surge

A few days ago, we heard from all over the news world about the sudden disclosure of confidential and important documents regarding the war in Afghanistan. The documents suggest that the US armed forces and its allies are indeed struggling to keep pace with the war and are starting to lose hold on it. With so many allied casualties reported every day, there might be more that went unreported. It also introduced the idea that the US may have fought the wrong war and are now starting the rip the consequences.

It is evident that the US has already spent billions and billions of dollars for this never ending war. Such a huge budget mostly goes to troop deployment cost, ammunitions and foreign aid. The US has been providing aid to foreign country where in fact they themselves have already accumulated so much debt. The US has also often claimed significant victories which the recent disclosed documents have proved otherwise. After 9 years of war, the Taliban insurgency hasn’t weakened and it may be stronger now than before.

Just recently, the US house has recently voted to approve $33 billion in war funding for the war effort in Afghanistan. This funding will be used for the additional 30,000 US troops which will be deployed in Afghanistan. The Government and the military forces seem unaffected by the scandalous nature of the leaked documents. Though they strongly condemned the release of such secret documents, it seems that they are unfazed and are still certain that they can handle the Afghan situation more precisely.

Before the actual voting procedure, one of the participants Rep. Jim McGovern, stated that the leaked documents indicated corruption and mismanagement by high ranking government officials in pursuing an Afghan government. McGovern also emphasized that the US government is more concerned at borrowing $33 billion to fund a foreign government rather than spend it on internal affairs such as education, health and social services.

The US goals in Afghanistan are all blurry and bleak. Too much lives and bloodshed are encountered by US troops and the government still hasn’t gotten the real lesson. The troop surge of 30,000 additional troops is a clear indication that the Obama administration is not paying attention to real and factual details. I personally hope that they wake up in their dreams and start realizing that the government of America is for the Americans and not for other foreign nationalities. If the US government is able to waste $33 billion on a silly and unwinnable war, why can’t they spend more money on basic social services such as unemployment benefits, healthcare insurance and education which will benefit more the American society?

Today’s Recession May Damage the Future of America

There is indeed widespread panic among Americans who can be considered victims of the irresponsible acts of the Government which resulted into a global economic recession. The continuous increase in budget deficit and national debt has cut major government services and as a result, more people are unemployed or underemployed or underprivileged. The unlikable events that are happening may have caused a more destructive impact on the nation’s future.

Because of the rising trend in which individuals are deprived of work opportunities, families’ especially bigger ones are unable to support their children’s needs. Take for example the son’s or daughter’s of each parent which might not be able to go to school and get the proper education that is needed for a brighter future. Also take in mind those young children who might fell ill but cannot be brought to the hospital because of huge medical bills. Several evidences suggest that indeed the nation’s future is severely affected by this catastrophic event in America.

It has been projected that one in every four children will eventually experience poverty. Without job opportunities, teens aging from 16-24 will comprise the vast majority of persons who will more likely get no job at all. There is also a study which predicts child poverty to be on the rise in the next couple of years. In the study, it is noted that a child may have a higher chance of not finishing high school and may end up growing poor. Children may also end up being overweight because their parents are unable to provide them with healthy and nutritious foods.

Being poor may affect the basic elements of one’s survival such as health. Without sufficient money or savings, future adults may be deprived of proper healthcare and medical attention. More adults are prone to diseases and may die at a younger age. The morale and confidence will be lowered and basically the industry’s talents will be lessened. As an effect, families may also refrain from paying their taxes. The national budget will be lessened and so the cycle goes on.

There is indeed a relationship between the present events and what will happen in the future. What we are living today will greatly influence the future of our nation. Think of our future sons and daughters who might be suffering from starvation, poverty and lack of education. If we don’t act now, our nation will falter and the future might end in peril. The government should stop cutting the federal and civil workforce as this will only result in more unemployed individuals. The best practice is to implement programs that are accountable and at the same time reasonable which aim in helping more citizens get the essential benefits and eventually get back their jobs.

The Wealthy may in Fact Be the Small Business Owners

Taxes are the primarily the basic life-support of the government. Without the existence of taxes, the government will not be able to implement programs and projects as they need appropriate funding to so. Government programs such as healthcare, national defense, social security and infrastructure development all rely on taxes to get them going. It should be noted that the previous Bush administration has implemented tax cuts or tax discounts to various businesses.

Today, the Obama administration together with his Democrat supporters has proposed to remove these tax cuts in order to improve tax collection and help reduce the budget deficit. They instead wanted to grant tax cuts on individuals who are single and are earning $200,000 a year. They also included couples who are earning lesser than $250,000 a year. The idea is that people who earn less should only be the one to receive lower taxes as well.

On the other hand, the Republicans opposed their claim and want to maintain these tax cuts. They say that most wealthy people who enjoyed and benefited these tax cuts are in fact small businesses owners. These small business owners are the work-horse of the economy and are employing thousands of individuals. Stephen Hayes, a known conservative specialist, said that the Obama administration is trying to raise taxes on people who are going employ a lot of people and who are supposed to help fuel back the economy.

With two contrasting statements, we are left with the task of figuring out if these wealthy individuals are certainly small business owners. While it is quite impossible that all these taxpayers are small business owners, it is good to figure out just how much do they comprise of the entire taxpayer’s population. Hayes’s claim is based on the Internal Revenue Service data indicating that a lot of the wealthiest taxpayers are in fact declaring a non-wage income such as income from a sole proprietorship or from a partnership.

While it may be hard for us to determine if these high earners are really those we perceive as small business owners, the government should provide a more clear definition of this so called “small business owners”. The effect of the expiration of tax cuts is still uncertain up to now. The republicans gave a reasonable logic that tax cut expiration on small businesses would in fact damage further the economy through unemployment. Let us just hope that the government is aware of this and will come up with ways to salvage the economy and empower these small businesses to provide more jobs.