The Obama Effect…. by Richard Frendt

The election of Barak Obama will be felt in extreme ways across the country.  Blacks will understandably be ecstatic, as will other Democrats, especially the Far Left.  With victory comes the spoils and I personally fear for the future of the country and in particular for well-being of my children and grandchildren.  I could be wrong, perhaps there will be some restraint rise up against the rising avalanche, or the country’s mood may change before the next presidential election and the tide may be partially held back, but I am pessimistic about this.

I am not thinking in abstract terms, I have specific concerns about the new direction and especially about the changes which will affect the lives of our citizens.  Just to be clear, I have compiled a list of specific, and for the most part measurable, changes I predict will befall this nation and it’s citizens.  If you think this is hogwash, do me a small favor and keep this list.  Eight years from now, do an objective review of it.  If I’m still around, point out to me all my errors; it will make me feel better.

 Barak Obama often says he will be beholden to no one when he takes office.  This, of course, is silly.  He will owe labor unions, teacher unions, trial lawyers, environmentalists, blacks, and the middle and lower classes he made so many promises to.  He will not act differently than what he believes to placate them, but he will feel obligated to charge ahead with their agendas.

The following are my fears.

Personal Freedoms

Eliminating the Secret Ballot

There will be a quick push to pass legislation favored by the unions to allow organizing activities to be in the union’s favor.  There already is legislation pending that will allow unions to organize a company or workplace by simply having employees sign a petition requesting it.  Secret ballot elections, currently required by the NLRB, will be done away with.  It will be justified as a “fairness” issue, and people will simply rationalize away one of our most fundament rights, to assist the unions.

Eliminating Dissent

A new Fairness Doctrine will be implemented to effectively shut down conservative talk radio.  The argument in favor will be cloaked in terms of “local content” or other similar terms.  It won’t directly forbid talk radio; it will simply establish “fairness” principles which will make it impractical for it to exist except in neutered forms.  Who can argue with fairness?

Gun Ownership

This will be slower to develop than the above elements.  It will come through both a liberal court appointed by the Obama administration and legislative efforts.  Creeping decisions on the type and amount of guns will be followed by a general banning of concealed weapon permits, or severe new restrictions being imposed.

Inventing new Rights                                                                                                                     

Health Care

Obama stated in one of the debates Health Care is a Right.  Once the principle of a right is established, courts define the parameters of the right.  It will be the “right” of anyone in this counry, legal citizens or illegal aliens, to receive the full complement of this right.  Canada does not pay for treatment of non-citizens, but we will.  This will put an ever-greater burden on the health care system.  The result will be a decline in health care for all by rationing services.

This will be compounded by the expanded government control of the health care system.  The only way to reduce costs will be to reduce payments to health care providers.  This has already been the tactic in the Medicare program for the past ten years.  A great majority of doctors no longer accept new Medicare patients.  About half the Doctors entering the system each year are foreign born.  As their compensation declines further, less of them will want to come here.  Fewer U.S. students will want to invest the money or the seven-year education commitment, and we will slowly spiral down in available care.  This will be a long-term development and most people won’t even recognize it has happened to them.  Surprisingly, they will be happy as long as no one else has better service.

Societal Justice

Obama has publicly stated that a major problem with the Constitution is that the Bill of Rights is a list of “negative rights”; what the government may not do to you.  It should have “positive rights”, what the government must do for you.  Economic sharing of the wealth is one of these.  It is reasonable to assume that he will appoint judges who agree with this philosophy.  We should expect then, the question of “Black Reparations” to come to a head.  Will the Black community not demand it?  This president may be their only chance for generations to come; will they just pass on this opportunity?

Obama will give his moral support to this issue, but won’t make a push to legislate on this item.  It will not go away.  The liberal courts will eventually weigh-in on the subject, and who knows how far they will go?  When decisions are based on fairness, the only way to forecast an outcome is to read the minds of the omnipotent judges who will issue the decree.   This will likely not come to a head until after the Obama administration has passed from power to avoid tarnishing his legacy.

Capital Punishment

The same conditions listed above will cause an end to capital punishment.  This disproportionately affects blacks, and it will disappear by the end of his second term, but it will come about through the liberal court system.  Soon thereafter a clamor will arise to end Life Imprisonment as “cruel and unusual punishment.”  This is not something I dreamed up, there is already a movement to support this concept, and isn’t it equally “unfair” to the Black community?  I don’t believe this will come to pass for many years, but a liberal court system will make inroads in some states for all but the most heinous crimes.

Illegal Immigrants.

Some type of amnesty program will be implemented.  Citizenship will be granted to expand the Democratic base.  Social Security benefits will be granted for even the past illegal time spent in this country.  Part of this will be legislated and then the new liberal courts will redefine the benefit system based on their new interpretation of what government must do for you.  As Hispanics gain political power with their expanded “legal” population, they will demand, and get, easier access to and immigration to the U.S.

Teacher’s Rights

Obama has promised increased pay for teachers.  This will surely be a commitment he must keep to the powerful Teacher’s Union .  How much of an increase will be sufficient?  Surely, ten percent would be seen as a pitiful offer, given the rhetoric about their plight.  Perhaps fifteen or twenty percent would be seen as meaningful.  Two million teachers with say a $10,000 pay increase will cost $20 billion a year.  But whom will it cost?

The teachers will also demand “reforms” to “improve” the teaching of those they currently don’t control.  Home Schooling will be greatly constrained by requirements that appear to be for the good of the students, but are geared to the good of the teachers union.  Requirements for certified teachers, mandatory foreign language instruction, or similar legal barriers will make Home Schooling very difficult and will place Charter schools under extreme pressure.

Teachers will then have unfettered access to the young minds to educate them in the “fairness” of our new approach.                                                                                                                                                                                                                                                                                        Voting Rights

New pressure will be brought to demand no “discriminatory” burdens such as personal I.D. or proof of residence, which are employed by the states.  Fraud will be difficult if not impossible to detect.  It will encourage each side to cheat, thinking the other side surely is.  But who is more likely to cheat, the side which advocates for less I.D., or the side who advocates for more?  Election fraud seriously undermines democracy.

Social Security Benefits  

These benefits will be preserved but will be means tested.  “Fairness” will require sacrifices on the part of the “upper class.”   Benefits will likely be based on your total income at retirement, and will be graduated to decline as you’re retirement income increases.  

Maternity Rights

It is only fair that paid leave become law.  This will be an early legislative push..  You always get what you pay for, just as Aid to Dependent Children destroyed families in the lower class (both blacks and whites); people will play the system, as they always do. 

Teachers especially will “play the system.”  If a female teacher is planning a family, it will be to her advantage to have her baby during the school year rather than during the summer months.  Some will take advantage of this and the costs to the public school systems will rise.

Tax Policy

Tax Cuts

A tax cut for the middle class will surely be delivered as promised.  We will then have nearly fifty percent of our population who pay no income tax.  Will this group be likely to vote for someone who says we must cut back our spending and live within our means, or will they want to just raise taxes on those who do pay, and not worry about the possible consequences?  At some point, incentives to invest in this country will decline enough to be problematic.  Our economy will decline and people will say it was inevitable, we all knew our Standard of Living had to decline, in spite of nearly 250 years of evidence to the contrary.

Social Security/Medicare Taxes.

They will rise sharply on the “wealthy”.  The salary caps that limit taxes will be eliminated.  Tax rates for Medicare will rise for everyone.  Medicare Benefits may actually increase for some, at least theoretically.  We will all be entitled to a vast array of treatments, but you will just have to wait your turn to receive them.  This will be a gradual decline and we won’t know what we’re missing.  We will just know that it is totally fair; all get equally poor treatment, so it won’t seem so bad.

Windfall Profits Taxes

Exxon/Mobile is the poster boy for “excessive profits”.  It’s just not “fair” to make such large sums, even if they did go through years of losses and meager profits.  The Oil industry will be the first, but surely not the last, to be penalized for success.  In this past year of excess profits, Exxon/Mobile made about ten percent profit based on revenues.  Many companies and many industries as a whole exceeded this amount.  I can only guess that something in excess of seven percent will be determined to be “excessive.”  It hard not to imagine the huge destructive force this will have on investment in this country, when investing in a foreign country will bring much more opportunity for profit. 

Capital Gains Taxes

Obama has promised to raise them even as most industrialized countries are lowering theirs.  He stated in a TV interview, that the negative effect of this tax is not as important as being “fair.”  The consequences will be similar to the Windfall Profits Tax.

Foreign Policy

U.S. Image Abroad

There will no doubt be great relief around the world at Obama’s election.  We will quickly become as well liked as the French, and just as effective.  We will “negotiate first” and come to agreements with our adversaries.  When they violate the agreement, we will negotiated a new agreement while threatening harsh action, much like Jimmy Carter did.  In severe situations, we will fire a few missiles. Our approval by our allies will be high unless they are one of the allies who were counting on our resolve.

Trade Policy

The union lobby will try to keep Obama’s feet to the fire on trade.  He will most likely renege on this promise, blaming Bush for tying his hands (although Clinton negotiated NAFTA and granted Most Favored Nation status to China .)

Still, it is likely that some trade barriers will be put in place as the pressure to “save jobs” increases.  Some of the pressure will come from Europe, (especially France ), but without U.S. leadership, creeping protectionism will set in, along with great distrust of the U.S.   This will further depress our Standard of Living as prices rise and unemployment increases.

Military Strength

Obama has promised to increase the regular Army and Marines by nearly 100,000.  This has almost zero chance of happening as the liberal congress sees other priorities.  The huge budget deficits ahead are much more likely to result in military reductions.  Our options to deal with serious situations will be reduced to Cruise missile strikes in most cases, and our adversaries will understand that.

United Nations/World Court

We will take a highly visible role at the UN and will support the Global Poverty Act, which calls for every developed nation to contribute 0.7% of its GDP annually, to eradicate poverty.  Obama currently is cosponsoring legislation to start this process in the U.S.   It is difficult to imagine signing on to this at the UN and then not being subject to the World Court ’s jurisdiction in this effort.  The current estimated cost to the U.S. is about $65 Billion/year.

Foreign Aid

Obama has pledged to double Foreign Aid and this will cause lots of countries to like us initially.  After a few years, countries will see it as their “right” to share our wealth and the benefit to our image abroad will decline, especially if budget constraints force cutbacks.. 

U.S. Debt

The commitments made by Obama are breathtaking in scope.  Substantial increases are promised in infrastructure, science, medical research, health care, education, college tuition, energy research and other areas.  There is not a single area of saving to be seen except ending the Iraq war.  He says we need at least part of the forces in Iraq to be moved to Afghanistan .  He also says we will remove combat troops from Iraq in 16 months.  The fifty to sixty thousand support troops we will leave in Iraq , plus those transferred to Afghanistan will negate most of the savings.  We are in for a huge deficit, in his first year alone nearing a trillion dollars.  This is in addition to the Bailout loans.  And it will not get better fast.

Investors, banks and creditor nations are going to begin to see this mushrooming debt as the next “bubble” in our economy.   Interest rates will balloon and we will be forced to either dramatically cut spending or dramatically increase taxes.  My guess is that the Military budget will be slashed in half and taxes will be raised substantially across the board.  It seems unlikely Obama will abandon the promised giveaways to his constituents.   

Utility Costs

Obama has pledged to pay for his Energy plan with fines collected from carbon emitters.  This means principally the Midwest Utilities, where most of our electric power comes from coal fired power plants.  Our electric bills will rise by up to 50% to pay these fines.  The utilities simply can’t absorb these costs.  Further, the new technologies, including wind and solar, will also cost more than our present system.  The Obama approach compounds the cost of clean energy.  This is not speculation, both Obama and Biden have stated recently that no new coal plants will be built in the U.S. , or if they are it will result in bankruptcy for the coal industry.

If we undertake this approach on our own without China and India being subject to the same rules, industries that use substantial amounts of energy will simply relocate to the unregulated countries.  More jobs lost and more of the downward spiral.  The companies that don’t relocate now will have a further cost burden to overcome.  Auto imports from China will flood the market, along with other high-end components such as semi-conductors and solar panels that require high amounts of energy.  The really bad news is that it will increase worldwide pollution and we will pay the Chinese to do it!

Some may think we can simply regulate China ’s behavior by shutting down their imports.  There are two immense problems with that approach; first, they are a principal financer of our debt, would we really risk an adversarial relationship with them; and second, we would be taken to the World Court and lose, or, if we did prevail, we would initiate a global trade war.

Court Appointees

In several of the above discussions, the impact of Obama appointments to the Federal Courts are noted.  He has stated the Warren Court was really not very activist.  He wants judges to be much more activist; to “protect the little guy” to bring “fairness” to the country.  Judges should be unencumbered by the Constitution, they simply need to have a sense of what is “right.”  The Constitution was written in another time, and no longer has relevance to the needs of the people.

CONCLUSIONS:

The predictions outlined above will not come about rapidly in most cases.  The first two or three years of the Obama administration will be widely celebrated.  The economic condition of the country will improve based on the vast stimulus deficit spending.  Then interest rates will begin to balloon and the bubble will burst.  This will probably not come to a head until early in his second term (almost a certainty).

The political climate will change faster with legislation favoring unions, teachers, trial lawyers, environmentalists, and illegal aliens, all moving quickly.  It is likely the Congress will move the legislation farther left than even Obama has proposed.  A telling indicator of whether this is true will be the size of new stimulus package passed.  Obama has called for another $60 billion but Democratic congressional leaders want $300 billion!  If Obama can’t hold the line on this item, it’s unlikely he will hold it in any other area.  If he caves, his reason will be “that conditions have worsened,” and then conditions will worsen.  The disaster of his plans will be even worse than we thought.

Some of the predictions that result from court decisions will be long term, but we will see “progress” toward them in four to ten years in most every case.  The tearing down of law and the building up of “class justice/fairness” will spread slowly but surely throughout the judicial system.

While I’m pessimistic about the next decade or two, I have hope for America over the long haul.  Our history shows we know how to overcome great adversity.  We will be given opportunities to turn back to our founding principles and slowly undo the harms we are about to inflict on ourselves.  The road is long and the hill is steep, but we have greatness infused in our spirits.  Liberty is not a worn out idea, personal responsibility can never be replaced with government guarantees, and the ingenuity and industry of individuals can’t be shakeled forever.  A sustained effort to gradually turn the ship of state toward liberty and self-reliance, may eventually see the barnacles of dependence, envy and self-pity wash clear.  We may again be masters of the rolling sea, not cowering in fear of what lies ahead.