Obama Energy: Bankrupt Coal...Artificially High Oil; Economy:40% Increase In Minimum Wage...Tax 80% Small Business Profits...

With just one day until the election, the real world effects of Barack Obama's economic and energy plans have 'come home to roost'.

Consider this...

According to the Department of Labor, 80% of Small Business profits and employment are derived by small businesses that have profits in excess of $250,000. These small businesses will which represent the primary strength of our economy will face a double whammy under a potential Obama administration.

First, the tax rates of these small businesses will increase. The result will force these small employers will in turn suffer slower growth as more money flows to the government and away from the business itself. The small business employers will hire fewer employees and in an attempt to maintain profitability during times of slow growth will most likely rely upon a combination of layoffs and higher prices.

Second, Senator Obama wants to impose a second increased expense upon these small businesses. Obama has promised to increase the Federal Minimum Wage to over $9.50 per hour within the next three years. The problem with Obama's proposal is not an increase in the minimum wage, but rather the size of the increase and timing of the increase. The United States is entering a recession, during which unemployment is on the rise. The absolute worst thing that could be done at this time is to force an increase in the Federal Minimum Wage.

The minimum wage primarily affects small businesses and particularly the service sector. A rise in the minimum wage, during an economic downturn will only force small businesses that are struggling to maintain profitability to either dramatically raise prices, or most likely eliminate jobs.

Just consider if you owned a small business that employees 10 individuals at the minimum wage. Obama's wage increase would have the financial equivalent of you hiring an additional 4 employees. As a small business owner, are you now likely to go out and hire additional employees? No... During a recessionary period in which business revenue is shrinking, are you going to raise prices? No...Instead you are now likely to make cuts, and in most cases those cuts will come from your payroll expenses.

During recessionary periods our government should be looking to help protect job creation, not imposing additional taxes and expenses of employers. The minimum wage issue has had little discussion, but the ill-timing of his proposed increase only demonstrates the true destructive nature of Obama' economic policies.

Onto Energy...

Remember just one month ago...when Senator Biden stated that Obama was opposed to clean coal?? Obama immediately came forth and stated that Biden was wrong and that he supports the coal industry as a vital part of our nation's economy.

Yet, yesterday audio recordings of Senator Obama in an interview with the San Fransisco Chronicle surfaced in which he stated, "If somebody wants to build a coal power plant they can, it's just that it will bankrupt them because they are going to be charged a huge sum for all that greenhouse gas that's being emitted."

That interview took place in January of this year, just 10 short months ago. The interview supports Senator Biden's assessment and supports what Obama's opposition has claimed for months. Under the Obama Energy Plan, US coal production will fall as production expenses and taxes increase to a point that the business is no longer viable.

Moreover, Senator Obama continues to lambaste oil companies, calling for a Windfall Profits Tax to pay for his energy proposals. The problem however is that Obama's WPT is not based upon actual profits, it is based upon the gross cost of a barrel of oil. Under Obama's plan the government would impose a steep tax on any barrel of oil that is traded at a cost above $80 per barrel. Yet, today the cost of a barrel of oil is well below $80 per barrel. As a result, Obama's own energy proposals no longer have any funding. So what now?

Since Senator Obama is still discussing the tax, you can only assume one of two things must occur. One, an Obama administration would work to artificially inflate prices to a point well above $80 per barrel. The public would be forced to pay higher prices, domestic production would fall, but the government could collect their valuable taxes. Or... Obama will simply lower his target price, imposing the massive tax on on barrels trading for far below $80 per barrel. Again the result would be a mass exodus of domestic production and a destruction of oil company profits that would endanger the entire industry. Either way, the result will not be good for our economy.

With just one day left until this election, the American people need to wake up. Although Senator Obama's over-populous messages sound grand, the reality is that they are economically irresponsible, especially during periods of increased recessionary periods. Obama is appealing to nothing more than the self-centered nature of so many Americans who want to blame those who are more fortunate for their woes and believe that the government is somehow the solution to their economic woes. Americans need to stop putting themselves first and put this nation first. A strong economy is built upon policies that promote job creation, not punish the small businesses that create a majority of our nations jobs. A wealthy nation, which utilizes its own resources and works increase domestic production can do far more for improving the lives of it's citizens, developing new technologies and protecting the environment. Our nation has the highest standard of living of any nation in the world, yet Senator Obama wants to change "decades" (did you catch that) "DECADES" of economic policy to move towards a European Socialist Economy. Obama has promised everything to everybody and that is a recipe for disaster.

So with one day left, if you know anyone in these battleground states, call them. If you know anyone in a state that is not even a battleground state, call them, talk to them and let them know what the mainstream media is not telling them. If your a small business owner, let everyone know what the effects of an Obama administration will do to your business. Fight for your business, fight for your employees and end this madness and the potential election of this Manchurian candidate.

J Brown
November 3rd, 2008