Where Keynes Went Wrong

I recently received an advanced review copy of a compelling and important book entitled "Where Keynes Went Wrong," scheduled to be published on October 1, 2009 by Axios Press. One of the perks of hosting a show is the large number of free books I receive every month. Better still is getting books weeks before they are released. This particular book, by Hunter Lewis, is fantastic and is must reading for those who are concerned about the future of our country. It provides one of the most thorough critiques of John Maynard Keynes and, more importantly, it restores the economic way of thinking that use to be a central part of Western thought and was the mighty force that made nations prosper. If nations applied the principles in Hunter's book, those nations would grow economically.

The timing for the book could not better. One year ago the US economy (and many economies around the world) began a terrible meltdown and responded with an approach very similar to what economist John Maynard Keynes promoted during the Great Depression. Lewis' compelling and powerful book eloquently argues that Keynes approach made that Depression far worse than it should have been and will have a similar impact on our economic situation today.

In the press release for the book we see that "When the world financial system began to fall in 2008, the US government reacted decisively with a stimulus package, bailouts, and printing, borrowing, and spending trillions of dollars. All of these interventions were taken from a playbook devised by the last century's most influential economist, John Maynard Keynes. But is Keynes right? The implications of this question are large and timely. If Keynes is wrong, then so are the economic policies of Barack Obama, George W. Bush, and virtually all governments today."

He tackles Keynes with extraordinary vigor and raises the questions that are desperate to the issues of the day. Did Keynes have proof for his theories? Lewis argues that the answer is absolutely not. In fact, the author noted in an interview that "Overall, the most surprising thing is the lack of evidence, much less proof for anything he says. It is just a series of brilliant hunches. But there is really nothing to back up the hunches. In the whole of the General Theory, Keynes most important book, there are only two pages devoted to actual evidence." Imagine building an economy on such flimsy evidence and even those two pages were lacking.

The two pages -- and the rest of the book -- are full of paradoxes that tend to only confuse and not bolster his arguments. The following are a few examples from Lewis of the type of approach Keynes would take to problems based on the General Theory:

• "If too much bad debt is the problem, for example during the Crash of 2008, the solution is to add more debt."


• "An economy depends on the confidence of the players. If confidence has been shaken by too much bad debt, restore confidence by adding more."


• "If low interest rates held down long have caused trouble, lower them further and hold them down longer."


• "If the public seems to be opposing the idea of borrowing and spending more, their elected representatives in government can do it for them."

These types of paradoxes (and many more) not only confuse the debate, but when they are applied in the form of public policy the consequences for the Great Depression was an economic downturn that lasted almost two decades. The jury is out on what kind of impact Obama's policies will have today, but human nature and the way a person responds to polices is unchanged. Lewis does an excellent job of providing a window of our own possible future based on the policy pursuits of Obama. What we can expect is long term pain.

This book is extremely readable and might be a force to impact the opinions of the general public. Unfortunately, I don't think most people will read a book about John Maynard Keynes except for those in the academic world who have already made conclusions about the economist. Many are familiar with the popular book, Free to Choose by Milton Friedman, but virtually no one (outside of academia) know about Capitalism and Freedom (also by Friedman) which has almost the exact same message. Titles matter. One that focused on our problems, rather than the philosopher behind them, would likely be a more popular work. This book is great, however, and with the times we are in it could create a huge following. With it coming out just before the holiday season, I believe this could be the idea gift for the person looking for answers to today's biggest problems.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

What will Fox News do with Glenn Beck?

Back in 2007 Don Imus set off a bomb when he called the women basketball team at Rutgers University "nappy headed hoes" during his daily broadcast on CBS Radio and MSNBC TV and was dismissed from both networks. Within no time Imus was back on the air on a different radio (Citadel) and TV (RFD-TV) network. Imus is about to upgrade his TV affiliation by joining the Fox Business Network. Imus rebuilt a significant amount of audience in no time and is bringing that crowd to Rupert Murdoch's business TV network.

Rupert Murdoch is one of the savviest people in media today, but his Fox News network is in a similar dilemma that MSNBC was in with Imus. Glenn Beck, host of the ever popular "Glenn Beck Show" told the Fox viewing public back in July (on the network's morning show, "Fox and Friends") that President Obama has a "deep-seated hatred of white people and white culture." It was really an off the cuff statement spoken in passing upon observing some of the President's choices, that led Beck coming to such a conclusion. Off the cuff? Maybe, but it has created a stir and has the network buckling down as it faces an onslaught of attack. An organization called the Color of Change has waged a boycott on the network and it has been effective in the financial arena. The Atlantic points out that "Lots of big companies who advertise on Fox have signed onto the boycott, orchestrated by Color of Change to protest Beck's proposition that President Obama is a racist, reportedly including Wal-Mart, Sprint, Travelers Insurance, General Mills, DirecTV, Geico, Progressive, Procter & Gamble, Radio Shack, Men's Wearhouse, GMAC Financial Services--at least 36 companies in all. (UPDATE: as commenter Mike Cee points out, Color of Change put the total at 46 after announcing 10 more yesterday.)" An hour long program would typically not have more than 40 sponsors, so this is a huge number by any standard.

I think that many advertisers who are currently on the Glenn Beck Show are not actual sponsors of his program, but of the network in general and are being placed in the "best times available" (BTA) which is one of the cheapest media buys. Many of these ad buyers are getting multiples of the exposure they are use to receiving at BTA. If this is the case, Fox News is probably losing money compared to what they normally enjoy for Glenn Beck's hour. However, I think everyone, even Beck and Fox News, are crying all the way to the bank. The LA Times points out in an article titled "UPDATED: As boycott continues, Glenn Beck's audience swells" that the TV host and Fox network "attracted 2.81 million viewers Monday, his third-largest audience since his show launched on Fox News in January, according to Nielsen Media Research data provided by the network. On Tuesday, nearly 2.7 million viewers tuned in, his fifth-largest viewership to date. And the conservative host got a plug from former vice presidential nominee Sarah Palin, who urged people to watch his program in a post on her Facebook page." The Times went on to quote Palin, saying “"FOX News' Glenn Beck is doing an extraordinary job this week walking America behind the scenes of 1600 Pennsylvania Avenue and outlining who is actually running the White House,' she wrote Wednesday to her 800,000-plus supporters."

In light of the audience Beck is receiving and the "ink" the networking is enjoying in the media, this temporary lost in revenue is little more than a high priced advertising campaign that should pay the network off significantly over time. As long as Murdoch and his team take a strategic approach and stay with the host, the network should be all the better when the dust finally settles.

If Fox can't handle the heat, I think the ratings hungry MSNBC would be delighted to get Glenn Beck in what they might call "Don Imus Revenge."

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Next Big Economic Earthquake

While some Americans are beginning to believe they are recovering from the twin disasters of the mortgage crisis and the Wall Street freeze, there is a new problem just beyond the horizon...a potential crash in commercial Real Estate. The extent of the concern was expressed quite well in a recent interview on Fox Business between anchor Alexis Glick and FDIC Chairwoman Sheila Bair.

Concerning the commercial and residential Real Estate situation: “Commercial real estate is ticking up more. I think later in the year into next year, the commercial real estate losses are going to be a much bigger factor. We’ve known it’s been coming for some time—there’s not a whole heck of a lot we can do about it.”

“The more traditional commercial real estate loans are showing some distress and that is derivative of the economic situation, so we will have some time working through that and I think it will be a big driver for bank failures in the next year."



On the rules that the FDIC put out yesterday: “They are good rules. I think there are some issues about timing because a s you know the industry is still under some distress…I think the issue is more of timing as opposed to whether the rules are the right thing to do. If we’d had them a few years ago, there would have been more capital in the system, so it would have been nice to have it back then and we’re doing the right thing now although the timing is troublesome.”

On economic recovery: “As the economy improves it will take a bit longer for the banks to fully recover, but we have some challenges ahead. They’re manageable and we’ll work through them.”

Can the FDIC cover the cost of bank failures? “We have a lot of cash—we have $22 billion cash on hand to cover the cost of failures.”

On the common ground between herself and other regulators: “We all agree that we need to end ‘too big to fail’ and we need a resolution mechanism that will allow these even very large institutions to be closed down and for shareholders to take losses as part of that process.”

Funny how the hero of 2008 was "too big to fail" is now the demon of 2009. I think the "average joe" could have forewarned the geniuses of Wall Street and DC that government wasn't the solution to our economic crisis.

View Glick's interview here.




Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Role of Geography in News

There was a time where it made sense for the distribution of news to be confined to one or two locations. Instead of sending news from Dallas, Kansas City, Chicago and other cities to all cities around the country, it was simpler to send information to major sources and for them to distribute it. It fit the technology limits of the time, but is no longer necessary today because of the online world we now live in.

The choice location for news to be sent was New York, which became the industry "leader" in journalism. More news is distributed from New York than any other source. The vast majority of the content in magazines, newspapers, and other traditional media are from the "Big Apple" and it is from that city's perspective that news is often "couched" or interpreted.

New York has polling numbers of "liberals vs. conservatives" that is almost twice the national average leaning to the left. Very few states -- maybe Hawaii, Vermont, or Massachusetts -- can even compete. Furthermore, the center of the universe of New York City is a tiny little neighborhood that yields a disproportionate amount of power called Wall Street. There is no question that the businesses traded there have a profound effect on the nation's economy, but it doesn't even come close to creating a majority of the jobs in this country (that honor goes to small businesses around the nation). Simply put, New York has an exaggerated view of itself and seems to measure the importance of all news on how it reflects on this small area.

The other major source for news is the nation's capital, Washington, DC. Having had lived many years there, I can speak first hand about the extent of its self importance. Those on the left content the rest of the nation cannot feed itself without an act of Congress. We are a nation of pets waiting to be taken care of by those far brighter than ourselves. This has long been the case, but seems to have hit an all time high under the Obama administration. Those on the right, on the other hand, have largely become cowards. They are no longer fighting for what is right and what is wrong, but are merely hoping to slow down the break neck pace of socialism. Those in the policy process that actually ask the question of what government can and should do are simply laughed at as irrelevant. It isn't "cool" to think the constitution matters. All sides there seem to think that policy is crucial, rather than the millions of people who create meaningful lives for themselves in spite of the governments best and worse efforts.

Combined these two cities add up to around 10 million people. Than there are the other 290 million of us who are fed up with the arrogance of both cities. People who believe that the average American is more capable of pursuing his or her destiny than the best government institutions can do for them. These people believe that the Constitution matters and if you swear to defend it, you better do so. These same people know that the vast majority of jobs are made by them and in spite of government.

The explosion of the blogosphere and social media are directly linked to the national discontentment towards both Washington, DC and Wall Street. People are making their own media that provides a better picture of reality than the vast majority of the mainstream media. In my opinion we have only seen the beginning of news media driven by the people. There is more to come and the need is huge. The news media was intended for the people and like what you are seeing with the Tea Party movement and government, expect the people take the news industry back also. These are interesting times indeed.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Don Imus on Fox Business?

It appears that Don Imus is in "advanced talks" with the Fox Business Network about being a part of its morning team with his radio program being simulcasted on the News Corp network. The network has tried to weaken expectations, stating that they have many conversations with many media personalities, but the talks with Imus seem to be further down the road. Imus is a controversial figure who has been known for his racial rants and also his profound philanthropy. Every person I have met that I have discussed Imus with fall in two camps, they either love his honesty and his generosity or they hate him and think he is a blow hard. In this culture these are among the essential elements of a successful media personality.

If Imus is added he will be on from 6 am to 9 am and the addition will affect current programs. The LA Times notes "Imus' show would replace current programming, which now includes 'Fox Business Morning,' hosted by Connell McShane and Jenna Lee, and 'Money for Breakfast,' anchored by Alexis Glick and Eric Bolling. Nielsen Media Research does not yet release public ratings for Fox Business, which is now available in about 50 million homes." Currently he is on RFD, which seems to be having a difficult time paying its bills (including Imus) and has virtually no footprint. Imus and his strong populist roots (which fits in nicely with Fox Business' desire to be an alternative to its more "elitist" competitors) and the incredible Fox brand could be an impressive "one two punch" and put the business channel on the media map. There are, however, many questions surrounding the deal:

• How will Imus "fit" on a business show? His show isn't about business, but there are ways they can make it more business like. They will, of course, have a crawl on the bottom of the screen with business news and probably put additional information on side boxes. Furthermore there are designated breaks during his radio broadcast that I'm sure Fox will use to promote important business news.



• What about that time of day? The show would run from 6 am until 9 am EST right up to the opening bell. For many, this is a great opportunity to find out what happened over night in foreign markets and to interview those who might make a play on the day's business news. It is the end of this type of programming that makes some think Fox is throwing in the towel. The reality is, that information can also be conveyed with crawlers.



• What is the biggest benefit for Fox Business to having Imus on the network? He has access to millions of listeners who will hear about the Fox Business brand every day on his program. Furthermore, he is a major name in the radio industry.

So, would Don Imus be good for Fox Business? It is hard to say, but both TV and radio are "numbers" games and Imus certainly has the eyes and ears that the Fox Business Network would love to have watching its network.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

News Reporters or News Makers?

Although every media has an opinion section, you want to hope that you are largely getting real news and not a political agenda. That "hope" is quickly becoming a joke thanks to the clear agenda of the "mainstream" media.

For example, much of the mainstream media has created a "profile" of what a "Tea Party" member looks like. He is white, angry, and racist. His interest isn't nearly as much about taxes and government control, we are told, but has much more to do with the fact we have a black president. This assumption about Tea Party members was challenged by a recent health care rally being held by President Obama. Sure there were protesters, but this particular one even included the favorite media stereotype of all -- someone actually carrying a gun. MSNBC reported that "A man at a pro-health care reform rally...wore a semiautomatic assault rifle on his shoulder and a pistol on his hip....there are questions about whether this has racial overtones....white people showing up with guns." The one thing MSNBC reporter Contessa Brewer failed to mention is that the gun man was a black and they edited the video in such a way you would never know. A black, gun carrying, protester, didn't reflect MSNBC's obvious agenda.

Than there is the story of a leaked email from Tea Party Patriots and reported by TPMMuckRaker.com, a decidedly liberal website. Zachary Roth points out in the article that "CNBC approached Tea Party activists, looking for angry protest events that would make good television, according to a leaked email from a Tea Party discussion group. And one Tea Bagger responded by flagging an upcoming event that, he said, 'should be a riot ... literally.'" Having had witnessed Tea Party events and having been a speaker for them, I know first hand they are very peaceful demonstrations. Loud, but very orderly. Members of the Tea Party went on to say that they intended to provide an event that was "above reproach." For me, the far bigger issue in the exchange between the CNBC and the Tea Party. The network abdicated its role of merely reporting stories and not trying to create it. It is interesting that CNBC made this request to a conservative organization and not one of the many left wing "truth squads" who naturally create riots at Ann Coulter, Tom Tancredo, and others.

It is the burden of the media to monitor people and events and provide stories of these accounts to keep us better informed. This often includes investigative reporting. But creating stories themselves is not reporting but the worse form of political activism.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Economic Agenda based on Realities

After a few weeks of euphoria in which it appeared that the economy was on an up turn we are receiving reports that unemployment has seen a remarkable increase. AFP reports that "US jobless claims in surprise jump for second week." The article goes on to point out that "The Labor Department said that initial jobless claims increased by 15,000 to 576,000 in the week to August 15, which happens to be the survey week for the monthly non-farm payrolls report, seen as one of the best indicators of economic momentum."

While the President and his Administration are making health care the single most important, millions of Americans are trying to figure out how to make the next payment on their home, their car, or their meal. Do they think health care is important? Maybe, but they think a job is imperative.

The largest unemployment rate in recent history. Forget about the 9.5 percent touted by the Obama Administration, economists on both the right and left say it is more, much more. Many

economists are projecting an unemployment as much as double of that when you factor in the untold numbers who have given up on the idea of finding a job.

It appears this Administration believes that the best way to solve our unemployment problem is by excessively taxing those who create jobs.. The majority of jobs comes from people who make $250,000 a year or more, yet this group is being singled out to pay more taxes. It has never been easier to move capital and with US tax rates the second highest among industrialized countries in the world, you can expect a flight of capital and jobs that comes with such.

Obama should distance himself from the fantasy that people are pounding the doors for socialized medicine when there are millions pounding the pavement for health care.

The Obama Administration should reduce barriers between people and jobs. This isn't through temporary government jobs that will run out with the subsidies, but through real jobs that create revenue for them to grow in number and in quality. The federal government should mandate the states to have a minimum wage law in each state of the union and allow them to set them based on the needs of the people and the cities. This would not cost the federal government a penny, but would spur economic activity immediately.

We should restore the competitiveness of US businesses and eliminate any temptation for jobs to be exported by relieving corporations of the burden of being a tax collector. Taxes are a fixed cost for doing business, plain and simple. If taxes are too high, businesses have no choice but move to places where the rate is less so they can lower prices and be competitive. This alone would have a profound impact on the creation of jobs. This policy would also encourage an increase in productivity and soften the blow of inflation.

The word "crisis" is often over used, but seems very appropriate in light of our current situation.

Obama is a modern version Nero, playing his fiddle of health care while the nation is in flames over unemployment.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Interviewing Your Next Congressman or Senator

The Tea Party movement will have many people voting for the first time in years and some voting for the first time ever. When they go into those voting booths they will be filled with anger -- even revenge -- and will be poised to "get back" at those politicians who have taken this country on such a dangerous course.

Candidates for Congress are applying for a job and it is imperative that they be asked some tough questions before one casts a vote:

• What is your employment history? In my opinion, if a candidate has never owned a business and has never been subject to the payroll, regulations, taxation, and licensure laws that comes with it, they should not be taken seriously as a candidate.


• What is your view of the Constitution? The responsibilities of a member of Congress are wide, but the single most important duty is to carry out the responsibilities in the Constitution they have sworn to defend. They need to explain what the enumerated powers in Article I, Section 8 of the Constitution mean. They need to articulate the role of the Tenth amendment in limiting federal power. If a candidate does not answer these questions in a manner in line with the Constitution, they have no business running for such an important office. This is the most important question to ask someone running for federal office.


• What other elected offices have you been in? US House or Senate are pretty significant offices. In my experience it takes politicians a significant period of time to "get their legs" in Congress. When I worked for the US Senate I was surprised by how little members knew when it came to conducting their duties. I believe that career politicians are a problem, but I believe it makes sense for the House or Senate to be the next step after serving in a state legislature.


• What other positions have you held? I think that many Americans will be a little reluctant to elect a career "community activist" to any office after Barack Obama. For a long period of time people on every level of government (federal, state, local) were reluctant to elect attorneys to office because who wants to elect individuals who make a living off the proliferation of laws? To me, the best candidate is the one who is most sympathetic to the plight of all Americans and understands the challenges of job creation and economic growth.

If Americans had been asking these type of questions before now, our country would be in a very different position today.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Is Michele Bachmann Considering a White House Run?

Recently I had the opportunity to interview Michele Bachmann (R-MN), a woman often described as a rising star of the Republican Party. In a political world plagued with Democrats on the fast track of socializing our economy and Republicans who provide the weakest of criticisms, Bachman certainly stands out. She is very vocal about her convictions and is willing to take Democrats and Republicans to task.

Bachmann has not been on the political scene long, first getting elected to Congress in 2006, but there is significant buzz that surrounds her among the rank and file of the GOP. She took Secretary of Treasury Timothy Geithner to task for what appears to be his complete lack of understanding of the United State Constitution. It was actually very riveting television. In spite of her short sprint in the House, her overall political experience is as long or longer than President Obama, having served in the Minnesota Senate since 2000.

What makes Bachmann interesting is her honesty about the obligations she made to defend the US Constitution. Frankly, most members of Congress in the GOP act simply too sophisticated to take the Constitution seriously and the Democrats simply don't seem to care. Bachman is quick to remind people that they have sworn to defend that document and that commitment requires more than lip service.

Drew Zahn of WorldNetDaily is reporting that Bachmann is now hinting on a possible Presidential run. No, she has not put together an exploratory committee, but she has already stuck her neck out by modern political standards. Zahn discussed the possibility of a run for the White House with Bachmann. The Congresswoman stated that "If I felt that's what the Lord was calling me to do, I would do it." Furthermore she noted that "When I have sensed that the Lord is calling me to do something, I've said yes to it. But I will not seek a higher office if God is not calling me to do it. That's really my standard. If I am called to serve in that realm I would serve," she concluded, 'but if I am not called, I wouldn't do it." Meanwhile most of the other candidates who are ran in 2008 and consider likely contenders in 2012 seem to dismiss this possibility without hesitation.

Bachmann would have a serious challenge running for the nation's highest office. She is a female facing a media that doesn't seem that interested in having a woman for President. Just remember the ridiculous "stay at home mom" questions Hillary Clinton faced. Furthermore, she is a conservative woman. This is almost a crime by media standards since the press seems to believe women and minorities should all be liberal. Finally, she comes from the politically impotent US House of Representatives, which has not been able to produce a President in over 120 years. In the end she will be interesting to watch. She has already caught the imagination of many in the conservative movement at at time when it is looking for serious leadership.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

"Choice" Under Obama's Health Care

There is a huge amount of angry rhetoric surrounding Barack Obama's health care policy agenda. On the left we hear about the untold numbers of people dying on the streets without health insurance and on the right we hear about "death panels" that will determine who gets to live and who has to die. The President has asked that the America people take the rhetoric down a little bit and have a thoughtful discussion. He tells us that "choice" won't be affected. You will "always have private options," Obama has told us. This is, of course, a little different from what he said on the campaign trail, in which he discussed a single payer system like Canada's which prohibits private practice, but is more in line with the political realities he faces today.

It is this issue of choice that I want to focus on. Advocates of government health care are telling us that under a new system you will be free to keep your private option, but you are going to have to pay for the health care of everyone on the government system. Candidate Obama said that only those who make $250,000 or more a year will be subject to new taxes to pay for his expansive government. In the last few weeks that number has been adjusted to those making around $100,000. The reality is that spending is so out of control and unemployment is so high, having a job at all will be considered affluent under this Administration.

The funding model of government health care will be similar to that of public schools. Everyone pays for the school, even if they don't use the school. Millions of Americans can simply go to their schools of choice and not be subject to the under performing public schools that we have become famous for on the international scene, but approximately 90 percent of all children come from families that choose not to go private, according to the Department of Education. This happens because parents are "crowded out" of the private options due to how expensive they are and the lack of dollars available to spend on them because they have to pay for public schools no matter where their children attend. In England, approximately 90 percent are on socialized medicine and only 10 percent have private insurance.

Ironically, most of the same politicians who argue that our public schools are not performing at the level they should are also arguing for national health care. Since government has done so well in public education, let us allow it to have a shot at our nation's health. That is a scary thought.

So will you feel forced to be under socialized medicine? Do you feel forced to have your children in private schools, but would prefer a private option? If the answer is "yes" to that question there is a high liklihood you will be under government health care program. However, if you are part of that minority that have children in private schools, you know how great that additional burden can be. It will likely be very similar under socialized medicine, far more of a burden than private health insurance is currently.

According to Freedom Works only around 15 milllion (out of 300 million) of the population are uninsured withough choice (not including illegals who should clearly be treated differently from the rest of the country, in my opinion). The US is toying with the idea of destroying a system that gives us huge choices and the most advanced health care in the world in order to accomodate approximately 5 percent of the population. The way we will help them is by destroying their health care too, because they are still being treated in our system, even without contributing. There certainly has to be a "better way."

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Discussing "Rule of Law" on Strategy Room

On FoxNews.com Strategy Room recently, I had the opportunity of being on again with my friend Eric Bolling, Host of the Biz Hour of the popular web based program (M-F at 3 PM EST). We dove into the subject of the arbitrary nature of government. We asked the fundamental question about whether it was appropriate for the government to change the rules on the way they do business with companies. For me, it was the more basic question of, "should the government be required to abide by the same contracts as the rest of us?"

Bolling gave the example of the "retro tax" on insurance giant AIG executives who lost approximately 95 percent of their bonuses after the bailout. At the time of the bonuses, there was no such sweeping tax on such bonuses. This was designed for no other purpose but to be vindictive on an institution that had reached a very low popularity level. Some loved it because it "felt good" to take money from those who "took money" from us taxpayers. It was, unfortunately, a slap in the face to the concept of "rule of law." One of those things that separate modern economies from the Third World.

Businesses succeed in countries where the risks are predictable. The decision to attack AIG executives in their bonuses may have felt "good," but has far reaching and negative implications. Since the government owns around 80 percent of the company, does it not make sense that we would want it to prosper? If that is a goal, wouldn't it be difficult to hire quality people if they will not be able to offer bonuses like others in the industry? Furthermore, if the government can arbitrarily change how much people are paid, people begin to wonder the reach of government, especially if it is not required to abide by contracts (like the one that allowed AIG executives to get bonuses).

For example, what if the government decided to fire the CEO of a company it was invested in? A couple of years ago this would have seemed impossible, but not any more. Simply ask Rick Wagoner, the former Chairman and CEO of General Motors. Obama's speech to the American people on why Wagoner "had to go" should have been a wake up call to everyone who wonders if it is good policy for the government to intervene in such a profound way. It makes for a more confused market place, not a more efficient one. It makes economies worse, not better.

Is this a defense for AIG executives who had their bonuses taken? Not at all, there is a side of me that is actually pleased because I hope it proves to be a cause for pause for any businesses that might pursue government solutions to problems. What I am trying to defend, however, is the idea of "rule of law" that contributes to stable and strong economies. Everyone, including government, must abide by the rules if our nation is to remain prosperous. Economic recovery itself rides on the idea that government must play by the same rules as everyone else.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

When Obama's Legislative Agenda Becomes Reality

Fast forward to November 2010 when Members of Congress face mid term elections. From what I can tell, it will make 1994 look like a cake walk for Democrats. That is saying quite a bit, considering the Democrats held a 56 percent majority in the Senate that was changed to a 55 percent Republican majority. In the US House it went from 258 Democrats to 204 and 176 Republicans to 231. It was the first time in decades that the Republicans held both Houses of Congress. It was a slaughter for the Democrats and many consider it a referendum on Bill Clinton's first two years and a reaction to corruption among Democrats in the US Congress (of particular concern was the large number in that party that wrote bad checks at the House bank that were covered by tax payer dollars).

In 2010 we have millions of Americans up in arms over bailouts to major businesses and an ambitions President with a political agenda that has under gone very little vetting. We have seen arrogance and elitism from Obama like we have witnessed from no other president and he has, ironically gone around the world apologizing for the "arrogance" of the American people. He has given us our first double digit employment in over a quarter of a century (in real numbers) and has spent more in the first hundred days of his administration than Ronald Reagan did in two terms. The President and those who support him are very vulnerable.


This is becoming all the more clear by simply looking at the man who sets the policy agenda in the US Senate. Harry Reid (D-NV) is fighting for his political life in his reelection for 2010 and often finds himself saying "no" to a second stimulus and is delaying the vote on Obama's health care agenda. This is not due to the economic consequences of these bills, but because of the political consequences as he faces a very difficult election in just over a year.


So with things looking so bad, when will the Obama agenda become law? Well, I don't have a crystal ball, but I feel very confident that I can narrow it down to around 90 days. I don't think Republicans will win a majority in the US Senate (because of the seats that are up for reelection this cycle), but I believe it will be a complete wipe out in the House. Ironically, it will be after this defeat of the Democrats that huge portions of Obama's most controversial bills will become law. The reason for this is simple, after the elections of November of 2010 and before the new Congress that is seated in 2011, both Houses will aggressively pursue Obama's agenda as a going away present to the American voters that threw them out. Cynical? Maybe, but I worked for the Senate and have been observing their behaviors for over two decades. This is more than a hunch, but something you can take to the bank.


Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Tax Policies in a Small World

The cliché that the "world is small" has increasingly become fact and not merely a clever statement. In fact, one of the most important books on the changes the world has faced in recent years is "The World is Flat" by Thomas Friedman. In it, Friedman points out that the lag time between information and decision making is at a all time low. Not only do people know where the best places are for the best deal on a car or a TV, they know the best states and countries for doing business.

Ireland went from what was practically a "third world" country in Europe to one of the fastest growing economies in the world. That was directly linked to its efforts of pursuing the lowest corporate tax rates in the industrialized world. Meanwhile, in the same time frame, Japan's economic situation has only become more dire as it continued to pursue high tax policies and garnering the dubious distinction as having the worse tax environment for business among modern economies.

The problem facing governments is simple, because in addition to being able to find our information fast on changes in government policies, people are able to move capital at a more rapid rate than any time in history. This is particularly true for the very wealthy (who have the resource to move money), who are always a popular target for high tax policies. The problem is not only among countries, but among regional or state governments (depending on the country).

Take the problem facing Maryland. The Wall Street Journal notes that the state of Maryland was in a terrible fiscal crisis and the government decided to saddle the deficit on the backs of the rich and "created a millionaire tax bracket, raising the top marginal income-tax rate to 6.25%. And because cities such as Baltimore and Bethesda also impose income taxes, the state-local tax rate can go as high as 9.45%. Governor Martin O'Malley, a dedicated class warrior, declared that these richest 0.3% of filers were 'willing and able to pay their fair share.' The Baltimore Sun predicted the rich would 'grin and bear it.'" The article goes on to point out that a year after the tax increases, "One-third of the millionaires have disappeared from Maryland tax rolls. In 2008 roughly 3,000 million-dollar income tax returns were filed by the end of April. This year there were 2,000, which the state comptroller's office concedes is a 'substantial decline.' On those missing returns, the government collects 6.25% of nothing. Instead of the state coffers gaining the extra $106 million the politicians predicted, millionaires paid $100 million less in taxes than they did last year -- even at higher rates."

There is no doubt that the recession is playing a role in the problem of less revenue coming into the states. However, the amount of revenue that Maryland is losing far out paces the majority of the states in the union. The rich are people and not blocks of wood. Unlike an inanimate object, when people are attacked (in this case "the rich" in the form of high taxes) they "fight" (which is why they join the many other income groups adversely affected by government in protests) or they "flight" (capital leaving to find safer or more profitable places).

Obama has waged a war on those he deems affluent. This is beginning to include those who make less than $250,000 a year as seen in cigarette taxes and Cap and Trade. Even before many of Obama's policies have been put into law, businesses are responding. USA Today reports that Federal tax revenue "plunged" by the largest amount since 1981." There is no question that many of the dollars disappeared due to the recession, but there appears that much may have taken "flight" to safer places.

If the US is serious about increasing its revenues, it will need to develop tax policies that allow it to compete with other countries that are fighting to improve their economic circumstances. Just as companies have to compete with low prices, countries now have to compete with lower taxes.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Why Steny Hoyer wanted to Avoid a Recess

For years there has been a great deal of division between Republicans and Democrats, at least in style, if not substance. However, there is one area of general agreement between both parties and that is their love for the summer recess.

The summer recesses are valuable and important for several reasons. When I worked for Senator Gordon Humphrey (R-NH), he use to remind his staff that was a very important time for them to determine if Members of Congress were heading in the right direction by hearing the concerns of constituents. Furthermore, when Congress isn't meeting, taxpayers can breathe a little easier because the fear of new spending takes a momentary rest. Some members simply go on vacation, but the vast majority work on the reelection efforts. This has been the way the Congress has conducted itself for decades.

Therefore, it came as a little bit of a surprise when House Majority Leader Steny Hoyer (D-MD) announced that he thought that Congress should not adjourn until it passed "urgently needed" health care reform. What was pitched as something that needed to be done immediately is increasingly looking like something that must be avoided. That "something" was the wrath of voters who feel as though the Obama Administration and its accomplices in the Congress are simply going much too far, much too fast in their aggressive legislative agenda. Congressman Hoyer and other Democrats who were in stronger positions in the next election cycle knew that vulnerable members might have a difficult time sticking to their guns. Keeping them away from their constituents added hope to the Obama team.

Ironically, Harry Reid, the Democrats leader in the Senate has had an agenda of his own. He immediately dismissed the idea of skipping the recess because he wanted his colleagues -- particularly the vulnerable ones -- to be fully aware of public sentiment. He didn't want to disrupt the Obama Express on his own, after all, as a leader in the party it is his job to get these bills passed. But Reid is among the vulnerable. His approval numbers are the lowest since he began his service in the Senate and he faces reelection in just over a year in 2010. I believe he wants his colleagues to stand with him to, at least, slow down the Obama agenda, if not obstruct it.

How bad is it? Several Democrats are avoiding Town Hall meetings altogether. Others are choosing decidedly safe places like predominantly minority churches and organizations. Barack Obama has given marching orders to his activist friends to overwhelm these events and demand that Congress support the President's health care agenda. This could get very tense when they face grass root activists of the Tea Party variety. Still others are facing some very tough questions from voters, including Steny Hoyer when he went to upstate New York to help his colleague, Michael Arcuri. At this event they faced a very angry mob, with one voter pointing out that the President put more time into the purchase of a dog than what he is giving the Congress in deliberating on socialized medicine.

Hoyer has read the "tea leaves" quite well on the situation facing members and I believe the cold shower on the Obama agenda should be significant. That is, at least, until the days between the 2010 election and the Congress that follows it. As a betting man, I believe those lame duck Democrats will do in defeat as they say goodbye, what they cannot do while style fighting for their political lives.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

A Lesson in Modern Journalism

Recently I wrote my column for RenewAmerica.com on "Barack Obama and the Racism Charge." Often my column gets picked up by other publications, which I am always delighted to see happen. The more sites it is found, the bigger the reach. With that, I should be thrilled about how well this most recent article was received in light of the many sites it was found. This time I was on the Discovery Channel, USA Today, the Boston Globe, and even the Wall Street Journal. The quotes they chose to highlight, on the other hand, has weakened my enthusiasm. The article was several hundred hundred words, but the syndicate only showcased three quotes:

"Moderation, contemplation, reasoned discourse and a bipartisanship spirit have been banished from the GOP. The birthers, tea baggers, Palin nuts and demented pundits like Rush Limbaugh, Sean Hannity and Beck are now in control of the Republican Party."

"Beck's claims are so crazy that I feel silly refuting them. Obama with his multi-cultural background, and his inclusive and open administration, is the very symbol of racial harmony."

"Glenn Beck's inability to hide the fact that he is an utter moron explodes into the open once more on Fox News when he, without bringing forward a single example, decides that Barack Obama is a racist."

To read these above quotes, the only ones out of the entire article that were displayed in large print, you would have to conclude I hate Beck and love Obama. If you read the article in its entirety, something that the page does, at least, encourages you to do, you will see a different picture:

• I am critical of these quotes above and those of other left wing bloggers.



• I actually cite evidence that supports Beck's claims, including Obama's appointment of Sotomayor, his treatment of the white side of his family in his biography and other sources, and the President's rush to judgement when it came to the incident with his friend Professor Gates in Boston.

The distribution of this article demonstrates one of the many problems going on in journalism today. The quotes from were likely pulled by a writer who doesn't know what journalistic integrity means. On the one hand, I'm delighted to get exposure on several major news websites. On the other hand, being projected as a liberal extremist is more than a little disconcerting.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

"No New Taxes" Meet Barack Obama

In the eyes of most people, including political pundits, scholars, and every day voters, the beginning of the end of the George H.W. Bush presidency began in June 1990 when he decided to raise taxes. Raising taxes is the occupational hazard of a politician. Even my favorite tax cutter, Ronald Reagan, found himself doing such near the end of his second term. For George Bush, it was absolutely fatal.

In 1988 Bush was desperately trying to make the case that he could carry the Reagan mantle. Conservatives have long been suspicious of Bush's tax cutting credentials. In 1980 Bush described Reagan's tax cut objectives as "Voodoo Economics." Many rank and file Republicans feared that the candidate of 1980 would become the President of 1989. During the 1988 Republican National Convention, Bush tried to placate those concerns with a paragraph that would at first lift up his candidacy and then later haunt his presidency. During that speech, Bush told the enthusiastic crowd: "And I'm the one who will not raise taxes. My opponent now says he'll raise them as a last resort, or a third resort. But when a politician talks like that, you know that's one resort he'll be checking into. My opponent, my opponent won't rule out raising taxes. But I will. And the Congress will push me to raise taxes and I'll say no. And they'll push, and I'll say no, and they'll push again, and I'll say, to them, ‘Read my lips: no new taxes.’ Many believed that statement both sealed the deal and cursed his presidency when he turned back on his pledge in less than two years.

Fast forward to 2008 and candidate Obama has pledged that the middle class would not see an increase in taxes. In fact, we were told that the vast majority of those making less than $250,000 would actually receive a tax cut. This was a constant theme of the Obama campaign and we were even given a nifty calculator on the Obama website so people could see how much they would save under the Obama plan. Fox News reports that is about to change: "'We will not get this economy back on track, recovery will be not strong and sustained, unless we ... can convince the American people that we're going to have the will to bring these deficits down once recovery is firmly established,' Treasury Secretary Tim Geithner said on ABC's 'This Week.' Asked point blank whether it was right to suggest it is a matter of when, not if, taxes will be raised, Geithner responded, 'It is absolutely right.'" The Associated Press went on to point out that Geithner would "not rule out tax increases for the middle class." The Administration can't afford to do such because the middle class has the vast majority of the taxable income "available."

According to Steve Moore of the Wall Street Journal, "The latest data show that a big portion of the federal income tax burden is shoul­dered by a small group of the very richest Americans. The wealthiest 1 percent of the population earn 19 per­cent of the income but pay 37 percent of the income tax. The top 10 percent pay 68 percent of the tab. Meanwhile, the bottom 50 percent—those below the median income level—now earn 13 percent of the income but pay just 3 percent of the taxes."

When Obama begins to go after this "treasure chest" of dollars, his positive polling numbers will go the exact opposite direction as the unemployment figures. The amount of days that will be left in his administration will likely become very numbered indeed.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Obama's Cap and Trade and Other Regulations will make Environment Worse

When I think of Cap and Trade and government efforts towards a better environment, I think of an interesting encounter I had while conducting seminars on Free Market economics. When I traveled Eastern Europe and the former Soviet Union, I was horrified by the pollution levels. Poland was particularly bad. I remember escaping to a large park because of the trees there actually made it easier to breathe. Much of the time my eyes simply watered and I coughed. It was miserable. I had a meeting with an economist in the Polish government and he noticed my distress. "What's wrong?" I said politely, "well, it seems I have caught something in your country." "Yes, we call it pollution, what do you call it in your country?" and smiled. I said, "why is it so bad?" He said, "well, it isn't because of the laws, we have the toughest environmental laws of any country in the world." Sure enough, I did my homework, and that was true at the time. He went on to say "the problem was recognized long ago by Aristotle who said 'What is common to the greatest number gets the least amount of care. Men pay most attention to what is their own; they care less for what is common; or at any rate they care for it only to the extent to which each is individually concerned. Even when there is no other cause for inattention, men are more prone to neglect their duty when they think that another is attending to it.'" He went on to say that he hoped that the moves the country was making towards free markets would lead to more ownership and better care of the environment.

Later, in another meeting he said, "the answer to these environmental problems are found in technology, not regulation." I liked the sound of that, so I asked him to elaborate, "as we recover economically, have more ownership, we will enjoy greater capital formation, which will lead to better and more efficient technology. That, more than anything else will reduce pollution." I casually responded, "I have never seen a poor country that wasn't polluted" and he responded back, "neither have I."

I have done further research on other government efforts to reduce pollution and found more stories that point to private, and not government, solutions. For example, according to the National Center for Policy Analysis, 90 percent of all dollars spent on the Super Fund has actually gone to lawyers and not clean ups.

The Obama Administration's multi tiered policies of Cap and Trade, CAFE Standards, and "Cash for Clunkers" (which largely benefits foreign auto makers, rather than domestic) while taxing wealth and job creation (which will only lead to more poverty), will actually contribute to more pollution in the years to come. One may be able to argue that one could pursue the aggressive regulations he desires in a strong economy, but in our current situation he is begging for immediate economic ruin and long term environmental disaster.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Is Barack Obama a Racist?

Radio and TV Host Glenn Beck has created quite a stir this past week in stating that Barack Obama "is a racist." It has been interesting reviewing the news headlines and seeing stories of deaths due to the war on terror, political scandals that are bringing down governments and international tensions caused by rogue regimes that we find Glenn Beck right there with all of them, because of his statement on an early morning cable show.

The political left, predictably, has come out in full force dismissing the claim:

The Osterly Times declares that "Glenn Beck's inability to hide the fact that he is an utter moron explodes into the open once more on Fox News when he, without bringing forward a single example, decides that Barack Obama is a racist."

Rose Conley of the Examiner simply declares that "Glenn Beck is stupid."

Comedienne Whoopi Goldberg proclaimed that Beck is a "Lying Sack of Dog Mess" in the Huffington Post.

Robert Paul Reyes, at Newsblaze.com, says: "Beck's claims are so crazy that I feel silly refuting them. Obama with his multi-cultural background, and his inclusive and open administration, is the very symbol of racial harmony." He goes on to say that "Moderation, contemplation, reasoned discourse and a bipartisanship spirit have been banished from the GOP. The birthers, tea baggers, Palin nuts and demented pundits like Rush Limbaugh, Sean Hannity and Beck are now in control of the Republican Party. "

That last quote is worth further review. It is time to simply look at the facts.

• Obama nominated a person for the Supreme Court who is, without question, a racist. Sotomayor has demonstrated such in many speeches as she discussed the superiority of "Latina women" over white males in the courtroom on the lecture circuit and was demonstrated in how she discriminated against white firefighters in a court case that was later overturned by the Supreme Court.


• When a well respected police officer (who actually teaches racial sensitivity training) arrests a black man for disorderly conduct (when a person yells they will not show a police officer his ID because it is "racist," that is disorderly), Obama calls the officer and the police department "stupid." Comedian Bill Cosby, when asked about it, simply said "I wasn't there." He went on to suggest a sensible approach would be to ask both sides. That does seem more Presidential.


• In his biography and speeches, you would never know that Obama was raised by white family members and that the black side of his family lineage virtually did not exist in his life. He had only a brief encounter that is measured in days with his African father. He seems to love a culture that abandoned him and is embarrassed by one that embraced him.

So, is Obama a racist? I think it is safe to say that he is certainly predisposed to such. Furthermore, he is an elitist of epic proportions as demonstrated in his treatment of individuals who didn't enjoy the education background afforded to him, be it the rural white people who "cling to their guns and religion" or the police officer trying to make tough decisions in the rough streets that surround Boston. The bottom line is Obama does not have the temperament necessary to represent the needs and interests of all Americans.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.