Obama’s fiery weekend speech to the Congressional Black caucus: Was that misplaced?

Keywords or Terms: President’s Speech; Congressional Black Caucus; Chastisements; Poverty; Black Americans; Jobs; Republican lawmakers; Tea Party; Grid-locks; Obama’s Administration

Many of us have heard this famous quote: “You are a sweet heart, don’t let anybody tell you anything different” Those are words uttered often affectionately to a lady, a friend, a family member, or the President. It is rather difficult to claim that these words can incite anyone to annoyance or outright disagreement. However, when the President speaks with a fiery tone to Congressional Black Caucus as reported this weekend, even ardent supporters of Obama’s Administration begin to wonder, if this current administration recognizes the unreasonable market condition that Americans are asked to survive; and, how less an effort the President has been perceived to have taken to address the huge unemployment rate in America. The blog tonight takes up the question: Was the President’s speech to the congressional black caucus misplaced?

With the declining retirement savings, huge mortgage foreclosures and convoluted stock market performance, many Americans are weary; and some are close to being completely out of their wits, with this current Whitehouse. Given that President Bush screwed-up with the two foreign wars and the associated expenses, shouldn’t the current Whitehouse have taken up the burning issue of unemployment in America before now? The Obama’s Administration took an awful long time before coming around to appreciate that many people in the right, and Republicans especially with flair for what the Tea Party group stands for, are never going to support progressive initiatives, whether it is a public policy that ask for more equitable taxation or a bill designed to help Americans who have suffered catastrophic experience from the down turn in America’s economy. The lateness in its realization of how much opportunity has seized for many, especially for black Americans, has somehow disadvantaged Obama’s administration and put it in a vulnerable position towards the 2012 general elections.

President Obama’s response to the apprehensive attitude of many blacks regarding his handling of the economy and the close to 25% unemployment rate among this group of Americans is: March on with me and press on! The President wants his loyal followers to take off their bedroom slippers, put on their marching shoes and shake things off. He wants them to stop grumbling and stop crying. If any black American has remained unemployed for the better part of Obama’s Administration, it will be rather hard for him or her to sing along with the President wishful thinking. There was reported thunderous applause from his audience at the black congressional caucus meeting; and, if the President believes that all is well in the hood, he is very mistaken; or, his political strategists are out of torch with reality; or, are not being truthful with him. The truth is: many black Americans are loyal to this President because of his august performance in other areas of national leadership; others, because he is considered as the first black American to hold that office. Bluntly spoken, if a Caucasian President had delivered an economy with twenty-five percent unemployment among black Americans, he definitely will be voted out by this minority group.

The President insists he is going to press on because we’ve got work to do. There is still ample room for the President to change the tide of history by working hard to bring back jobs to Americans before the oncoming general elections. Many blacks believe he can still do magic, only if the Republican lawmakers can forgo their self-preservation mentality on Capitol Hill. And, there goes the dozy! The nation today is in uncharted waters. The recession has nearly mopped off the remaining numbers of blacks and whites in the middle-class income group and worse more, our retirees are feeling the impact of a nonperforming economy on their retirement savings. Could  loyalty to a President out of other considerations withstand the assault of the present economy?


As the President’s 2012 campaign strategy evolves, it seems his campaign team is fast realizing that he has to hold on to his loyal base, some of whom are today wondering where his message of hope, that was as brilliant and crystal clear in the 2008 campaign, has been? Where is the message of hope for black youths, single-female black heads of households and new graduates of historical black colleges without a job? Where is the hope in the black families loosing many of their homes to foreclosures? Can anyone truly paper-over or sing ‘kumba-yah’ over tight credits for thousands of small-businesses ran by blacks? Who can keep matching on, when elderly retired blacks are loosing their retirement savings in troves and many of them, kicked out of retirement homes because they cannot afford the expenses of daily living? These are issues of concern to many Americans and one they all want their President to deliver on.

Chastising the loyal black base, calling for them to press on with the President, may be asking for too much or, falling on deaf ears considering the plight of many blacks in the current America’s economy. Black America has remained a loyal supporter of the President; and, would probably remain so for other reasons that I may not be able to articulate at this time. However, many of them are losing spirit like a dropping yo-yo, not because they dislike the person of the President, but because of the predicament they have found themselves with unemployment under this administration. How can one justify the number of the homeless at this time? With a huge number of blacks loosing their homes and about 40% youth unemployment among blacks, to call for complete loyalty may sound unreal! On the issue of poverty, many Blacks have known more years of poverty than the President can fathom, so coming around to chastise them is hardly a good campaign strategy. Black Americans are not seeking a hand down, all they want is the opportunity to chart their future and be treated humanely, when it comes to finding opportunities or chasing the American Dream. What Black Americans seek, just like the other 18 – 20 million unemployed Americans, are jobs, jobs and jobs, not chastisements!

In an era of Republican recalcitrance, there must be a way to get to the hearts of these Americans, convince some of them, if not all of them, to work for the betterment of this country and our Democracy. Further, in an era where and when Republicans want to extract something out of anything, and any bill moving through congress is being held ransom for one excuse or the other, the President must actually be forthcoming regarding his strategy in the next twelve months to change the fortunes of Black Americans. He cannot be exasperated by the level of recalcitrance among his opponents or tired of fighting, as if he is wounded; politics is a tough game, not for the faint at heart, which is why only the best survive. That is why the President is considered a leader; and, leaders learn to accommodate and or, put themselves in the shoes of the led. President Obama cannot afford to be seen as lecturing his loyal base on loyalty and forbearance, as this occasionally, is interpreted as insensitive and probably abuse of privilege.

The President needs to speak directly to what he intends to do to change the perception of close to complete breakdown in leadership and cooperation among lawmakers that is hurting the chances of jobs creation for Americans. Yes, blacks are unwavering in their support for this administration; however, what blacks like any other American will be contemplating come next year’s election is this: I’m I better off than what I’ve been since the rise to power of this President? Americans of all stripes are more interested in whether they are better-off under a Presidency or not? Quite a challenging question for an occupant of the office; however, many Americans are deeply thinking if there is a better option out there. The message from this President, in this trying economic atmosphere, must be: Yes, there are options to me, but I understand the problem of this country right now better than any contemplated candidate to me. I am working hard as I can get and will do better to ensure that many more Americans are able to get a job, feed their families and have a roof over their heads. This is an essential message for a second term in the White house.

Congressional Black Caucus may have been polite to the President last weekend, out of  respect for his office and the need to hold forth on his behalf on his first time around; but, not because they are pleased with the sufferings among blacks and their constituencies. Many of them may not have spoken much after the President’s speech, or offered public comments regarding the chastising from the President; however, deep inside many of them is the same question: Is America better off under this President or not? The American Jobs Act is probably a first step to help turn around a bad job market; however for blacks, like other Americans who remain unemployed, this is an act that came a little too late; or is in limbo, considering the atmosphere in today’s congress. Frankly, the challenge is not found in a rousing speech to a committed constituent; rather, it is in establishing a relationship with Republican lawmakers so that bills like the America’s Job Act do not end up in a grid-lock, just like many other bills that have been introduced this year in congress.

Blacks want President Obama to be more forceful, for this is one genuine way to bring about accountability in congress. The President cannot be fighting from a weak point against the Republicans. He cannot always be snickered or bamboozled by Republicans, assuming that these lawmakers have good intentions for the nation, especially with regards to minorities’ concerns. The current Republican primary debates are unique opportunities to truly find out where Americans are truly hurting; or, where there have been some short-comings in the current administration’s effort to better the welfare of Americans. As things stand among Republicans, it seems there is hardly any top notch candidate among the slate of aspirants yet, if the results of the ongoing debates among the aspirants are taken into consideration. This is an opportunity for the Obama’s Administration to commit to greater goals and heights to see that the dysfunctional lawmaking atmosphere in congress is a thing of the past; and, the task of creating better employment opportunities for Americans and ensuring many retired citizens, have better retirement living, without stress and anxieties, are realities.

P.S.

I still love President Obama and will vote for him, hands down. However, there is no better person to tell a brother, if things are upside down in the family because of his action or inaction, than another brother!

P.S.

I still love President Obama and will vote for him, hands down. However, there is no better person to tell a brother, if things are upside down in the family because of his action or inaction, than another brother!

PPACA One Year Later: Why the increase in the number of the insured matters?

Keywords or Terms: PPACA; 600,000 health Insurance Policies; Obama’s Administration; Legislative Successes; Constitution; Constitutionality; US Department of Health; Grand Father Clause; Universal Health Care Plan

In a time when one in four New Yorkers are living in poverty; and, poverty increases in my own home state of Washington has jumped from roughly twelve percent to about fifteen percent, it is refreshing to know that there has been an increase in the number of people with health care insurance in the United States. Further, in a time when many newly minted college graduates are unemployed, it is not just refreshing to know that many more youths under the age of 26 carry health care insurance; it is heartwarming that in his first two years in the Oval office, President Obama pulled all the strings to make health poverty, a thing of the past for many Americans. The United States Congress passed the Patients Protection and Affordable Care Act and Obama signed into law, an act that was over half a century in making. In addition, in a time when seniors and retirees are realizing that their retirement’s investment returns are on a precipitated slope, the news that at least 600,000 Americans, were afforded health insurance, opens the door to other promises of the law, including giving a solid ground to Medicare and Medicaid by saving costs, one aspect of concern for many of our senior citizens. In the spirit of the good news, the blog today offers the argument that increased number of Americans with health care insurance matters, no matter how any critic of the law, cuts or dices it.

Many Presidential advisors, policymakers and press secretaries, past and present, in Obama’s Whitehouse may blush at the news of increased number of Americans under health insurance since the passing of PPACA. However, none of them will now like to swap those sleepless nights of lobbying congressional lawmakers to support the act while moving through congress for something else. With the current news of increased number of the insured, over half a million, just in the first quarter of this year, the sleepless nights and rocky days endured by the early members of the Obama’s Administration, make it worthwhile, no matter what the polls say of their boss’s handling of the economy. The anxiety of Barack Obama being a one term President may be worrisome to some of the advisors in the Whitehouse; however, history will definitely be kind to this administration, for pulling many Americans from health poverty. In life, occasionally, it isn’t how long, but how well. Frankly, if we examine the numbers of legislative achievement of this current Whitehouse, no one, friend or foe, will ever say Obama’s administration has not been productive. If in doubt, call for the legislative records from Congress since January 8, 2009!

Never mind the naysayer, many of us in the left, give kudos to Obama for fighting for what is just and proper in the lives of Americans. The Whitehouse may be daunted by the unyielding unemployment rate; however, Obama’s Presidency has answered one of the greatest questions of our time: Can America have enough heart to take care of her own, when they are desperately in need of health care insurance? With the help of former Speaker Pelosi and Senate Majority leader Reid, President Obama and the United States Congress reaffirmed the conviction of our founding fathers in the Preamble as implemented on March 4, 1789:

“WE, the People of United States, in order to form a more perfect union, establish justice, insure domestic tranquility [provide for common defense, promote general Welfare], and secure the Blessing of Liberty to ourselves and our Prosperity, do ordain and establish this constitution for the United States of America.”

Two items in the list of what a government is expected to deliver as affirmed in the United States Constitution were met by Obama’s Administration in the introduction and passing of the Patients Protection and Affordable Care Act; and, in bringing Osama Bin Laden to judgment. In the first two years of Obama’s Administration, he hashed out one of the constitutional mandates, to promote general welfare of Americans; and in the third year, met and destroyed a prominent enemy of the union; an enemy that created a daunted challenge for his predecessor, the Bush’s Administration. By working tirelessly, day and night, in passing the Patients Protection and Affordable Care Act, Obama delivered on the promise of promoting the welfare of the citizens of this country; and, in finding and killing Osama Bin Laden, he secured the blessing of liberty to our union and our prosperity. Despite the endless questioning of the constitutionality of the Patient Protection and Affordable Care Act, the truth is, the law met the constitutional requirement of improving the welfare of Americans. For those slates of Republicans running to unseat President Obama, including their far right leaning party stalwarts, it may just be time to read and re-read, what the constitution says; rather than lip-singing what a few shallow-minded Republicans are advertizing about the Patients Protection and Affordable Care Act.

We’d like to think that when politicians cry foul, there is really something out there. Late last year, U.S. Department of Health clarified some issues regarding the types of changes that may cause the loss of grandfathered clause, due to the introduction of the Patient Protection and Affordable Care Act. There were fears that many plans are going to loose grandfather status after the introduction of the provisions of the law. Given that over time, it is expected that some plans will loose some grandfather clause due to other factors,  including plan size and number of participants, the fact that U.S Department of Health addressed some grandfathered issues in its September 23, 2010 Newsletter, says a lot about the flexibility to changes expected from the law. In addition, it is expected that the U.S. Department of Health will issue other administrative guidelines in addition to the preamble to the regulations provided to insurance companies as footprints to managing health plans. All these efforts have the potential of expanding the number of people buying health care insurance.

A survey of health insurance companies’ reported quarterly profits in Standard and Poor, indicate that many more small businesses are offering health benefits to their employees since the advent of the law. Critics who were looking for evidence that small businesses will close shop because of probably higher premium costs for providing health insurance to workers have been confounded; as data show, close to fifty percent increase in the number of small companies offering health care benefits to their employees. The compliance with the law by small businesses is far from the expectations of the naysayers; and, the dream of carrying health insurance that has escaped many Americans in past, is gradually becoming a reality. This law is good governance, whether its critics believe or not.

Certain criticisms are tenable against the law; however, those criticisms are only because some expected provisions in the law have not phased in, or delayed. As the Patients Protection and Affordable Care Act continues to help Americans carry health insurance, Americans will begin to learn of the bests in the law and become attuned to its overall benefits. Republicans are still apprehensive of the provisions in the law and believe that some of the provisions in the law are a dangerous hype and unsuitable for a free-market health care environment. Notwithstanding, we are all witnessing the promise of the law as many more Americans, at least more than half a million today, are carrying health care insurance than last year. Criticisms are good for anything because they allow us to improve or do better; but, Republicans must not shut their minds to the reality that the Patients Protection and Affordable Care Act is the right thing for America; not the bogie-man their leaders in congress are making it to be.

The Patient Protection and Affordable Care Act did not deliver the Universal Healthcare Plan dreamed about by many supporters of reform in the Health Care System; however, it guaranteed that some Americans who were in the past excluded from coverage, because of pre-existing conditions, have a place to go; or, can sleep a little easier, as the phasing in of the law ensures that no American maybe turned down on grounds of pre-existing condition; this is another two to three million potential health care insurance customers. Two prevailing practices of health insurance companies, dumping patients when in need of coverage or when the cost of care seems unprofitable and excluding high risks health insurance customers, are now against the law. Both practices had been exploited by insurance plans and made many Americans go bankrupt before the advent of Patients Protection and Affordable Care Law.  

Americans must be hopeful that being in this country – perhaps we are lacking in per-capital number of available doctors- when compared with some advanced economies; however, none of those countries can best the multiple options of services available in the America’s healthcare system. If we did not reform the health care system, “we’d still be paying more for health care insurance and administrators of many plans will still be excluding a huge number of Americans from the system, while making the few carrying insurance to pay more for those who were freeloading in the hospital emergency rooms." The analogy that the Patients Protection and Affordable Care Act is synonymous with socialistic medicine is not only ludicrous, it makes one laugh at anyone making that analogy, as more health insurance companies are making more money as the expected critical mass of customers they anticipated are exploding with the advent of the Patients Protection and Affordable Care Act!

Buffet’s Rule or principle: Risk sharing across American households?

Keywords or Terms: Oracle of Omaha; Shared Sacrifice; Inequality in Taxation; Class Wars; Fairness and Unfairness; Middle Class; Millionaires; American Politics and Campaign 

 If you read the January 2010 issue of Review of Economics Dynamics article: “Unequal We Stand: An Empirical Analysis of Economic Inequality in the United States, 1967-2006” by Fabrizio, Heathcote and Violante), you will understand why the case is being made by Warren Buffet and President Obama for shared sacrifice in the nation's effort to dig herself out of the huge budget hole. We have had inequality in taxation and accumulation of wealth for years in this nation. And, like Republicans want us to believe, there is nothing wrong in being entrepreneurial and reaping  the fruits of one's labor. This notion is fundamental to a free-market economy; or, characteristic of an enterprising economy that can help create jobs. Mind you, there is nothing wrong in accumulating wealth from wages and investments. However, where the difficulty arises, is when wealth is being taxed at differential ratio, or the percentage of one's income paid seems lopsided for disproportional number of Americans, which in turn makes it seem as if there is no equality in shared sacrifice among all income groups; especially, when there is an urgency to dig the country out of an economic doldrums.


Enters the Oracle of Omaha, Warren Buffet, and his acclaimed contribution to the debate over how we may now get the economy moving.  Mr. Buffet surmise that the rich have to pony out more of their wealth largesse. The mega-rich billionaire wants to be taxed just as well as his secretary and wonders aloud in New York Times, why he pays taxes at a lower rate than his secretary. The chagrin of this unfairness led him to call for more taxation of the rich, including him; a position many Republicans have problems with. To put it in his word, the government should stop hugging the rich. The Republicans probably have problems with Buffet’s position, because to a large extent, about half a million of Americans who fall in the category of the mega-rich, with the assumption of a million-dollar income threshold, are mostly Republicans. In fact, over half of congressional representatives or senators fall in this category. It is not surprising therefore, when the Republicans liken this call to class warfare in their charade over the Sunday’s television talk shows circuits; to which President Obama, simply refers to as a Math problem; or raptly [my emphasis]: a misunderstanding of the ratio of taxation spread!


The persistence of income inequality in America has been a problem since 1979. Income increased for all groups on the economic ladder after the second world war. However, in the decades since 1979, while the income of the poorest Americans declined, the richest had an expansion in income threshold never before seen in the history of this democracy. During the booming Clinton era, the stock market was jumping and the rich were carting billions home. The Bush era tax cut, wiped out probably all the savings to the economy of that era and exploded the federal budget deficits. The gaps between the rich and poor, as well as between the rich and the middle class, have continued to expand since the second Bush's Presidency. While unemployment reached and surpassed ten percent in between the last Bush Administration and Obama's, rich Americans have had their wealth expanded vociferously from worthy stocks and bonds' investment performance.


Some economists claim that Obama was dealt a bad hand when he took up the office of the Presidency; that the economy was not only in a free fall as he ascended the office; but, that the precipitated unemployment problem preceded his Administration; and, made all the remedy in terms of economic stimulus, unnoticeable. As many Americans attempted to find jobs, an equal number were being thrown out of work nearly every quarter of Obama's administration. Further, the housing problem has not made matters better, more homes were being lost to foreclosures as many Americans lost their jobs and the American economy tanked. In addition, the parameters of measurement of wealth was skewed against the middle class and the poor, as many in these groups fell into the category of Americans whose homes were under water or in foreclosures. With a stubborn unemployment problem, government tax revenue fell and much of the economic remedies prescribed by Obama's Administration, seemed belated or ineffectual. Worse more, the issue of income inequality began to enter into political lexicon once again; and, many Americans in the middle class and poor groups saw themselves at the receiving end of a slumping economy. 

Inequality in human rights in America led to the equal rights amendment of 1972; the question today, is it time for amendments to the constitution to empower congress to enforce legislative provisions that ensure that the taxation codes are not too lopsided against a class, to an extent that the class feels cheated or annihilated when it comes to sacrificing for the nation in times of economic recessions. Empirical analysis of data on income inequality indicate the inequality across American households; and the inequality in risk borne when taxation is chosen as a measure of forbearance to the nation’s financial woes. For purpose of recalibrating the economy, could the secret lie in the taxation code as is now lauded, or are there other issues that we must be looking at to overcome the close to a grinding economy which has led to scarcity of jobs for a huge population of Americans? The rich in America are not finding President Obama's proposal to tax them at close to fifty percent of their wealth, very funny or welcoming. The middle class and poor income groups see this call as necessary or probably, too late, considering how long it has taken and the pain they have suffered during these trying times. 

The politics of the current call for the rich to pay  more in taxes probably emanated by the call from the left for a more proactive attitude from this White house to stand up against the Republicans, to shift away from conciliatory negotiations on issues of budget and more.  President Obama has been inundated by complaints from the left, that there is need to change tone in leadership. Many Democrats had called for bold and confrontational stance, challenging the Republicans to stand back and see that they are being obstructionists in negotiations regarding common ground on the deficits issues. The President has done just that in the last two days and he has even gone as far as drawing a line on the ground, indicating that he will veto any bill that does not carry the shared sacrifice doctrine with respect to raising revenue along social welfare budget cuts. There are those who perceive this new face of the Presidency as one that is long overdue; however, many Republicans perceive this new stance as apolitical rather than result-oriented.  Who is right in this assessment is better left for time to tell.

The Super Committee on Budget negotiations are probably listening; however, the Republican members of the committee are already saying there is no deal, if the proposal is to raise taxes against the super rich. These are delicate times and the fundamental underlying success of a call from a Presidency are hardly assessed by its pronouncement, but by his ability to effectively ensure that his pronouncement(s) come to pass rather than his adversaries'. The current speech from the President may not have broken the resolve of the majority of the House members, but Capitol Hill has very little options now, as they cannot just dismiss the current call from the President. The rhetoric of class warfare coming from Republicans probably will not make much of a difference, however, Democrats want their leader to return and stand on the basic principle  of their party; shoulder high above everyone. Those are the state of things now!