Tag Archives: federal spending

Posted by Big Governement
March 9, 2010
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The Stimulus Bill’s Hidden Attack on What We Eat, Drink, and Smoke

One of the more extreme proposals floated early in the national health care debate was the idea of taxing soda and other sugary beverages. That trial balloon was almost immediately shot down by the American public, but the Obama administration is attempting to achieve, by subterfuge, soda taxes and a lot of other ways to micromanage our lives in the name of public health—whether or not ObamaCare passes. The mechanism is buried in last year’s $862-billion-and-counting stimulus bill, and works by diverting hundreds of millions of dollars that should be promoting economic growth to instead pay lobbyists to push for higher taxes and nanny-state controls over our lives.

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It’s on pages 66 and 67 on the American Recovery and Reinvestment Act, which created a $1 billion “Prevention and Wellness Fund.” Of that, $650 million went to Kathleen Sebelius’s Department of Health and Human Services and has been used to start a new program at the Centers for Disease Control and Prevention (CDC) called “Communities Putting Prevention to Work” (CPPW).

Where does that giant pot of grant funding under the CPPW go? What it calls “MAPPS Interventions for Communities Putting Prevention to Work.” MAPPS stands for “Media, Access, Point of decision information, Price, and Social support/services.” In other words, strategies for changing our behavior, for social engineering on a large-scale, and, it seems, circumventing the normal democratic process. In a 14-page guidance for grant applicants, the CDC details tactics that grant applicants should include in their plans. It includes “counter-advertising” against targeted products, complete tobacco usage bans, limiting “unhealthy food availability” (the really bad stuff like “whole milk, sugar sweetened beverages, high-fat snacks”), and of course taxes (or in CDC lingo: “changing relative prices of healthy vs. unhealthy items”).

A supplemental document explains in more detail what the targets are, including restricting availability of soft drinks “in homes, schools, work sites, and communities.”

It also recommends local zoning changes to put fast food restaurants out of business, trans-fat bans, salt regulation, and food taxes. They even suggest a TV ban of sorts, recommending: “specific regulations/policies that limit television and other screen media.”

The first $120 million of funds has already been awarded to the states, and local grant recipients are expected to be announced soon. In Wisconsin, for example, we already know that the state department of health submitted a grant to use federal stimulus dollars to hire lobbyists to push for bans on flavored tobacco programs at the local level.

Although the grants under this program are supposedly restricted from funding lobbying activities, there is imply no way these objectives can be accomplished without major legislative changes at the state and local level. Our federal stimulus dollars are being used to hire lobbyists to push for these taxes, bans, restrictions, rules and regulations on what we eat, drink, smoke, and do for recreation. It’s a sweeping micromanagement of our lives that we didn’t vote for, made even worse by the fact that it’s being funded by stimulus money that was supposed to put people other than lobbyists back to work.

Posted by Big Governement
March 9, 2010
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Reason.tv: Pork Party House! Where DC Insiders Go for Tax-Subsidized Fun

First Rep. Charlie Rangel (D-N.Y.) surrenders his chairmanship of the Ways and Means Committee amid an ethics investigation. Now Speaker Nancy Pelosi (D-Calif.) proposes an idea that she hopes will help her make good on her promise to help lead “the most ethical Congress in history”—a party-wide ban on earmarks. Will it happen? Don’t bet on it. Reason.tv’s “Pork Party House” helps explain why neither party can resist the pull of pork.

If you’re a politician, lobbyist, or insider and you’re in the mood to party, check out a Washington D.C. mansion called the Sewall-Belmont House. Party with senators and celebrities at thousand-dollar-a-plate fundraisers! You might even get to ride a mechanical bull! The Sewall-Belmont House hosts so many A-list events, you might be surprised to find out that your tax dollars help fund this hotspot for Washington insiders. “Over the last 10 years, the Sewall-Belmont House has gotten over $3.4 million in earmarks,” says Leslie Paige of Citizens Against Government Waste.

Reporters often highlight the most ridiculous examples, but politicians have learned how to make their pork projects sound uncontroversial, even appealing. Just say your project will help children, senior citizens, or—if you really want to slip under the radar—direct taxpayer dough to a museum.

“Museums are one of the biggies because they sound so good,” says Paige. Sen. Mary Landrieu (D-La.) used that angle to direct a million-dollar earmark to the Sewall-Belmont House (after the Senator received an award from the Sewall-Belmont House). Turns out Landrieu was just getting warmed up, because her recent $300 million “Louisiana Purchase” shot her into the ranks of pork legends.

It wasn’t supposed to be like this, laments Rep. Jeff Flake (R-Ariz.), one of Congress’s few legitimate pork busters. Flake tells Reason.tv that despite pork-laden scandals that stuck some members behind bars—remember Rep. Randy “Duke” Cunningham (R-Calif.)?—and promises from Barack Obama to reform earmarks, spending on pork continues to swell in the giant pork party house called the U.S. Congress.

“Pork Party House” is written and produced by Ted Balaker. Producer: Hawk Jensen; Host: Nick Gillespie; Field Producer: Dan Hayes; Associate Producer: Paul Detrick; Additional Camera: Meredith Bragg; Production Assistant: Josh Swain; Music: “Get What You Want?” by Beight (Magnatune Records).

Approximately six-and-a-half minutes. Go to Reason.tv for iPod, HD, and audio versions of this and all our videos.

Subscribe to Reason.tv’s YouTube Channel and receive automatic notifications when new material goes live.

And come back to Reason.tv March 15 through March 19 for the debut of Reason Saves Cleveland With Drew Carey: How to fix the “Mistake on The Lake” and other once-great American cities, an original six-part documentary series.

Posted by Big Governement
March 9, 2010
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Reason.tv: Pork Party House! Where DC Insiders Go for Tax-Subsidized Fun

First Rep. Charlie Rangel (D-N.Y.) surrenders his chairmanship of the Ways and Means Committee amid an ethics investigation. Now Speaker Nancy Pelosi (D-Calif.) proposes an idea that she hopes will help her make good on her promise to help lead “the most ethical Congress in history”—a party-wide ban on earmarks. Will it happen? Don’t bet on it. Reason.tv’s “Pork Party House” helps explain why neither party can resist the pull of pork.

If you’re a politician, lobbyist, or insider and you’re in the mood to party, check out a Washington D.C. mansion called the Sewall-Belmont House. Party with senators and celebrities at thousand-dollar-a-plate fundraisers! You might even get to ride a mechanical bull! The Sewall-Belmont House hosts so many A-list events, you might be surprised to find out that your tax dollars help fund this hotspot for Washington insiders. “Over the last 10 years, the Sewall-Belmont House has gotten over $3.4 million in earmarks,” says Leslie Paige of Citizens Against Government Waste.

Reporters often highlight the most ridiculous examples, but politicians have learned how to make their pork projects sound uncontroversial, even appealing. Just say your project will help children, senior citizens, or—if you really want to slip under the radar—direct taxpayer dough to a museum.

“Museums are one of the biggies because they sound so good,” says Paige. Sen. Mary Landrieu (D-La.) used that angle to direct a million-dollar earmark to the Sewall-Belmont House (after the Senator received an award from the Sewall-Belmont House). Turns out Landrieu was just getting warmed up, because her recent $300 million “Louisiana Purchase” shot her into the ranks of pork legends.

It wasn’t supposed to be like this, laments Rep. Jeff Flake (R-Ariz.), one of Congress’s few legitimate pork busters. Flake tells Reason.tv that despite pork-laden scandals that stuck some members behind bars—remember Rep. Randy “Duke” Cunningham (R-Calif.)?—and promises from Barack Obama to reform earmarks, spending on pork continues to swell in the giant pork party house called the U.S. Congress.

“Pork Party House” is written and produced by Ted Balaker. Producer: Hawk Jensen; Host: Nick Gillespie; Field Producer: Dan Hayes; Associate Producer: Paul Detrick; Additional Camera: Meredith Bragg; Production Assistant: Josh Swain; Music: “Get What You Want?” by Beight (Magnatune Records).

Approximately six-and-a-half minutes. Go to Reason.tv for iPod, HD, and audio versions of this and all our videos.

Subscribe to Reason.tv’s YouTube Channel and receive automatic notifications when new material goes live.

And come back to Reason.tv March 15 through March 19 for the debut of Reason Saves Cleveland With Drew Carey: How to fix the “Mistake on The Lake” and other once-great American cities, an original six-part documentary series.

Posted by Big Governement
March 9, 2010
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The United States of Argentina: Obama’s Pension Grab

Barack Obama’s money train has steamrolled uncontrollably across the country, compiling record-breaking budgets, deficits, and debt along its path. Now, the train is running out of fuel, and the nation’s retirement money may find its way on board, to keep the train on the tracks.

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Earlier this year, the U.S. Treasury and Labor Departments began a public discussion on the aim to convert 401(k) saving plans and Individual Retirement Accounts (IRAs) into annuities and other forms of guaranteed income streams. Deputy Assistant Treasury Secretary Mark Iwry stated, “the question is how to encourage it, and whether the government can and should be helpful in that regard.” The supposition that the government is looking to be helpful with this proposal should automatically cause alarm.

The rationale for what would ultimately serve as a government takeover of the nation’s private pension system is of the same mold as the position Obama and Congressional Democrats have staked throughout the debate on health-care reform; “trust us, we know better than you”. Their assertion is that a weakened economy and a volatile stock market call for them to protect you and your interests, in this case your retirement money.

Last month, Newt Gingrich and Peter Ferrara editorialized on the Investor’s Business Daily website:

“The idea is for the government to take your retirement savings in return for a promise to pay you some monthly benefit in your retirement years. They will tell you that you are “investing” your money in U.S. Treasury bonds. But they will use your money immediately to pay for their unprecedented trillion-dollar budget deficits, leaving nothing to back up their political promises, just as they have raided the Social Security trust funds.”

If such a scheme sounds familiar to you, that’s because it is—cue Amos Lee’s I’ve Seen It All Before.

When Obama-mania was sweeping the world, and the then-Senator from Illinois was weeks away from making history, Argentina was searching for a solution to keep its own runaway train on the tracks—in hopes of improving its ability to service the nation’s debt and prevent another national default. Socialist President Cristina Fernandez de Kirchner’s solution came in the form of the seizure of the $30 billion Argentines had amassed in their private pension funds and immediate transfer of the money into the nation’s social security system. Unsurprisingly, her administration defended the nationalization of the system as a means to guarantee pensions during a time of global economic uncertainty, and attacked the private system’s administrators who criticized the government’s intervention.

In February, Obama unveiled his budget for fiscal year 2011 which includes a proposal to require small businesses to establish automatic IRAs for employees. With his cronies from the financial services industry by his side, the measure is being marketed as a means to create a nation of savers. But this proposal wasn’t conjured up with your interests at heart. In actuality, the president is licking his lips, with his eyes set on sweetening an already massive lottery jackpot for the government.

As of the third quarter of 2009, Americans held a combined $8 trillion in 401(k) plans and IRAs, according to the most recent retirement market report from the Washington D.C.-based Investment Company Institute. Furthermore, his proposal for health-care reform calls for an extension of the 2.9% Medicare tax to unearned income, which means those annuities and other forms of guaranteed income streams you would receive in exchange for relinquishing the freedom you currently possess over your retirement funds, would be subject to taxation. The American people consistently lose when the government desires to be helpful.

The presidency of Barack Obama is nearly 14 months old, and the campaign-feel good rhetoric waxed about the Change We Need in Washington has materialized into the concoction of a young president channeling his inner-Daley to transform the nation’s capital into Chicago on the Potomac. Now, the citizenry of this nation should prepare for him to channel his inner-Kirchner to provide a taste of Argentine politics.

Unfortunately, it won’t taste as good as the steak.

Posted by Big Governement
March 9, 2010
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US Census Form Letter Promises ‘Fair Share’ of Federal Money

census-workers

Knowing that federal and state money doesn’t come from Obama’s stash and does come from our own paychecks and our friend’s and neighbor’s paychecks, I found the 2010 US Census form letter puzzling. Yes, I know that the census is required (but not all forms are completed) and helps allocate federal funds, but this was much more in-your-face and clearly baits the reader with federal funds that they “need” as quoted:

Dear Resident:

About one week from now, you will receive a 2010 Census form in the mail. When you receive your form, please fill it out and mail it in promptly. Your response is important. Results from the 2010 Census will be used to help each community get its fair share of government funds for highways, schools, health facilities, and many other programs you and your neighbors need. Without a complete, accurate census, your community may not receive its fair share. Thank you in advance for your help.

Sincerely, Robert M. Groves
Director, U.S. Census Bureau

Go to for help completing your 2010 Census form when it arrives. [Note: this sentence is repeated in Spanish, Chinese, Vietnamese and Russian]

On the web it continues to tell about the 2010 census; this section does not appear on the actual form letter:

ABOUT THE 2010 CENSUS
The 2010 Census is a count of everyone living in the United States and is mandated by the U.S. Constitution. Census data are used to apportion congressional seats to states, to distribute more than $400 billion in federal funds to tribal, state and local governments each year and to make decisions about what community services to provide. The 2010 Census form will be one of the shortest in U.S. history, consisting of 10 questions, taking about 10 minutes to complete. Strict confidentiality laws protect the respondents and the information they provide.

According to the Constitution the census is to be taken every ten years to count the population to accurately determine how to apportion Congressional Representatives among the states. The census is also used to allocate federal funding to the states. Now, the White House oversees the census and Congress enacts, via law, the questions the 2010 will ask.

In addition, the census process has had to endure a White House power grab making Americans very skeptical of the WH’s true intentions. Moreover, there’s is some inherent distrust of how the census is designed and the information it may yield that could allow for a permanent Democrat-controlled government:

The civil rights community won an important battle today in the fight for a fair and accurate 2010 census that counts every person in the United States as required by the U.S. Constitution.

By voting today for cloture on the Commerce-State-Justice Appropriations bill, the Senate effectively ended debate on the divisive Vitter-Bennett amendment. The amendment, which would have forced the Census Bureau to add questions on citizenship and immigration status to the census form less than six months before the count, is clearly unconstitutional. Under the 14th amendment to the Constitution, the apportionment of members of the House of Representatives is based on a full count of persons – not just citizens – in each state. emphasis mine

Unconstitutional? Not sure about that if the people they are referring to are in this country illegally. But, because the citizenship question is not on the form, illegal residents will be more inclined to fill out the form.

Furthermore, the questions asked are quite intrusive and appear unconstitutional.

Finally, this form letter has all the characteristics of Obama’s “fair share” and ”spread the wealth around” sentiment because, as we clearly know now, he will return the wealth to its rightful owner–and it’s not the ones who earned it–because that wouldn’t be fair.  And it’s disturbing that other people’s money is used as the bait to motivate people to fill out the census form.

Posted by Big Governement
March 9, 2010
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Bob Corker’s Bailout Bureaucracy

It appears that the Bailout Bob Corker continues to ignore the pleas of his conservative allies and constituents and is close to reaching a deal on establishing a new consumer regulatory bureaucracy that in the words of Sen. Dodd, will be like one we have not seen before. Corker has told CNBC that the last stick point is not the principle of new regulation — he has capitulated on that point — but “administrative issues.”

The legislation includes Corker’s pet project, a “strong resolution mechanism for unwinding troubled companies.” News to Corker: For over 200 years, America had such a mechanism — it was called bankruptcy. But “unwinding” troubled companies is a code word for BAILOUT. The Federal Government, via the Federal Reserve, would be empowered to break-up, subsidized and bailout companies. As House conservatives warned during the House debate, enactment of the bill would establish bailouts as the official policy of the United States for decades to come. That’s why the House bill authorizes $4 trillion for the Federal Reserve.

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Adding insult to injury, Reuters also reports that the Corker “reform” bill does not address the main culprit in the financial crisis — Fannie Mae and Freddie Mac. It does not address the issues associated with Community Lending that encouraged banks to lend to people who could never pay back their loans. It does not address ACORNS. All it does it layer more Washington bureaucracy on top of existing Washington Bureaucracy. Nice work, Bob.

The bill was flatlined and now Corker has revived it. His media fawning work will cost taxpayers for decades to come. It appears that Corker is officially off the conservative reservation.

Posted by Big Governement
March 8, 2010
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Now, I Definitely Want A Job In Government

Study this USA Today chart and cry:

http://reason.com/assets/mc/kmw/2010_03/jobs.png

According to USA Today:

“Overall, federal workers earned an average salary of $67,691 in 2008 for occupations that exist both in government and the private sector, according to Bureau of Labor Statistics data. The average pay for the same mix of jobs in the private sector was $60,046 in 2008, the most recent data available.”

And let’s just add insult to injury:

“These salary figures do not include the value of health, pension and other benefits, which averaged $40,785 per federal employee in 2008 vs. $9,882 per private worker, according to the Bureau of Economic Analysis.”

So now when you put your kids to bed and they tell you that when they grow up they want to be a doctor and a veterinarian, your answer should be: “Honey, these are all great choices, but what you really want to be is a bureaucrat.”

Here and here are more arguments to convince your little ones.

Posted by Big Governement
March 6, 2010
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That Smell

That Smell.

Posted by Big Governement
March 4, 2010
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Reason.tv: 3 Reasons Obama’s High-Speed Rail Will Go Nowhere Fast

Supertrain 2010 = Supertrain 1979!

President Barack Obama has pledged $8 billion in tax dollars to build a national network of high-speed rail—trains that can carry passengers at speeds in excess of 150 MPH.

But the Supertrain fantasy was a mistake back in the 1970s, when it gave rise to one of the most expensive—and rotten—TV shows in history. And it’s just as much of a wreck in the 21st century for at least three reasons:

1. The lowball costs. CNN estimates that delivering on the plan could cost well over $500 billion and take decades to build, all while failing to cover much of the country at all. Internationally, only two high-speed rail lines have recouped their capital costs and all depend on huge subsidies to stay in operation.

2. The supposed benefits. “We’re gonna be taking cars off of congested highways and reducing carbon emissions,” says Vice President Joe Biden, an ardent rail booster. But most traffic jams are urban, not inter-city, so high-speed rail between metro areas will have no effect on your daily commute. And when construction costs are factored in, high-speed rail “may yield only marginal net greenhouse gas reductions,” say UC-Berkeley researchers.

3. The delusional Amtrak example. Obama and Biden look to Amtrak as precedent, but since its founding in 1971, the nation’s passenger rail system has sucked up almost $35 billion in subsidies and, says The Washington Post’s Robert J. Samuelson, “a typical trip is subsidized by about $50.” About 140 million Americans shlep to work every day, while Amtrak carries just 78,000 passengers. There’s no reason to think that high-speed rail will pump up those numbers, though there’s every reason to believe its costs will grow and grow.

“Supertrain 2010″ was written and produced by Meredith Bragg and Nick Gillespie, who also hosts. Approximately 3 minutes.

Go to Reason.tv for iPod, HD, and audio versions, and for supporting materials and more videos.

And subscribe to Reason.tv’s YouTube channel to get automatic notifications when new material goes live.

Posted by Big Governement
March 4, 2010
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The Vast Right Wing Conspiracy: Bunning Throws Reid the High Hard One

I grew up in Kentucky where every boy who ever played baseball knew the name of Jim Bunning. He is the Hall of Fame pitcher who threw a perfect game for the Philadelphia Phillies and knew how to play hardball long before the tingly-legged Chris Matthews co-opted the name for his decidedly softball show.

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If you are anywhere near being a fiscal conservative you have to absolutely love what Senator Jim Bunning did this week. This week Senator Bunning showed Senator Harry Reid, and a few Senate Republicans how to throw one high and tight. His one man play at fiscal responsibility has the Washington “in” crowd crying foul and showing their hypocrisy.

In case you missed it here is a brief rundown. A few weeks ago the Congress passed a bill known as “Pay-Go,” a fluffy piece of nonsense posturing. On its surface Pay-Go seems to be fiscally responsibly, if you want to spend some money you need to show where it is going to come from. Senator Bunning knew the bill was hogwash because any spending could avoid being subject to Pay Go if it was “an emergency.” He didn’t vote for the bill for that reason. He also saw another flaw in the bill, a single Senator could hold up the whole Senate if they wanted to.

This week when Senator Reid tried to push through an extension to unemployment benefits Senator Bunning played a little chin music for the Majority leader and put the breaks on the additional 10 billion in spending. Senator Bunning invoked his right to stop the bill and call for the application of the Pay Go rule. When members of the media hounded Senator Bunning for a comment he showed them the door, of the elevator he was taking. Nice added touch!

What followed was supreme political theater and posing by the left. Senator Reid could have simply called for closure on the bill and gathered eighty votes, which were there for passage and the poor unemployed whom he, a parade of progressives senators and fellow traveler Bernie Saunders of Vermont cried crocodile tears for would have had their additional handout from Uncle Sugar. Oh my, oh my thousands would soon be starving and homeless due to this heartless conservative! Cue the beating of breasts and gnashing of teeth and much wailing! None of that could have been further than the truth but as conservative talk show host Larry Elder says, “Facts are like kryptonite to toe tag liberals.”

Senator Bunning gave up his stand after a few days and I think that’s too bad. After watching the parade of phonies decry Senator Bunning’s actions I was wondering what the average American who doesn’t live with an hour of LA, D.C. or New York thought of this tough guy making a stand. It’s my feeling that if a national poll were held on who they supported in this standoff, Senator Bunning or Reid, Senator Bunning would have another win on his record.

Posted by Big Governement
March 4, 2010
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‘Symbolic’ Wind Turbines Generating More P.R. Than Power

Now that most of twelve California wind turbines retrofitted for Minnesota winters are finally operational, several cities have acknowledged to the Freedom Foundation of Minnesota that the $5 million project may be more suited for generating PR—both good and bad—than producing significant quantities of power.

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The wind power project involves utilities in eleven cities scattered across the state from the metro area to East Grand Forks in a consortium called the Minnesota Municipal Power Agency (MMPA). Each of the eleven member cities received one turbine, and the twelfth was given to the MMPA owned and operated Faribault Energy Park in Faribault. It was supposed to be a step toward meeting the state renewable energy mandate that requires 25 percent of Minnesota’s power be from renewable energy sources by 2025.

It turns out, however, the twelve wind derricks will produce power for perhaps several hundred homes, hardly making a dent in the MMPA’s 57,000 household and business customers.

“They’re basically for public relations, educational purposes. They’re just not feasible for any significant amount of electrical generation,” said Dan Voss, Municipal Utilities Director for the City of Anoka.

The idea of a green energy public relations campaign is acknowledged up front in what’s called the Hometown WindPower project’s criteria for the turbine site selection on member city North St. Paul’s website. The document states the turbine must have “prominent visibility from major roads” and serve to “show each community’s commitment to clean renewable energy.”

The turbines succeeded in attracting publicity from the start, drawing national attention for all the wrong reasons, when the frigid Minnesota temperatures shut down the turbines before they ever got going.

“The original purpose was to help meet our 25 per cent requirement,” said Wally Wysopal, City Manager of North St. Paul. “The other objective is to get people to understand this is going to be a tough objective to hit and these are symbols of that.  And I think you can see they’re not easy to get going sometimes.”

At $417,000 per wind turbine, it’s an expensive campaign fueled by federally subsidized Clean Renewable Energy Bonds (CREBS). The revenue or cost savings from the renewable energy are utilized to pay off the bonds over an average of 15 years.

“The CREBS bonds made it reasonable. It is subsidized, it is available, and we took that opportunity,” Wysopal added. “Otherwise, we would not have done it.”

In 2007, MMPA envisioned installing 300 foot tall turbines that would generate as much as 1.5 megawatts of electricity, providing a greater portion of the cities’ daily energy use. But last fall MMPA began installing turbines less than half that height at 115 feet and with about one-tenth of the capacity at 160 kilowatts.

The estimates of how much power will be produced varies: North St. Paul’s website estimates that 110 homes will receive power when the turbines operate at full power; Anoka’s estimate is at 35-40 homes. At least one city utilities director hopes the controversy focuses attention on the danger of over-relying on wind power to meet the state’s renewable energy mandate.

“One fifth of the arable land would have to be taken up by wind turbines to meet the mandate,” Dan Voss said. “It’s just not a good policy and it’s not sustainable and unfortunately, there’s no interest in it until the lights go out.”

Check here for coverage of another controversial wind power project in Minnesota.

Posted by Big Governement
March 4, 2010
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ShoreBank, Sharia Law and Bank Bailouts

We all know what the words “debt,” “taxpayer,” and “interest” mean, but how many people know what the words “jizya”, “dhimmi” and “Grameen” mean? In order to understand the precipice of disaster that the banking system is resting upon today, one must understand all these words, and then some. No solution can be found by only understanding the first three. Only an illusion of understanding exists until the latter, and more, like “jihad” and “Sharia Law”, are considered.

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The jizya amounts to a tax paid by Non-Muslims to Muslims in order that they may live in peace. A fair comparison is money paid by business owners to neighborhood thugs in order to gain protection. Think Mob. Engaging in this endeavor creates the status of dhimmi – a willingly subservient protected group of third class subjects. Let’s just call this what it is – extortion based slavery. Let us also understand that this is an endgame of this thing called “jihad”.

From the Koran:

(9:29) – “Fight those who believe not in Allah nor the Last Day, nor hold that forbidden which hath been forbidden by Allah and His Messenger, nor acknowledge the religion of Truth, (even if they are) of the People of the Book, until they pay the Jizya with willing submission, and feel themselves subdued.”

(30:39)  And whatever you lay out as usury, so that it may increase in the property of men, it shall not increase with Allah; and whatever you give in charity, desiring Allah’s pleasure– it is these (persons) that shall get manifold.

(3:130) O you who believe! do not devour usury, making it double and redouble, and be careful of (your duty to) Allah, that you may be successful

(2:275) Those who swallow down usury cannot arise except as one whom  Shaitan has prostrated by (his) touch does rise. That is because they say, trading is only like usury; and Allah has allowed trading and forbidden usury. To whomsoever then the admonition has come from his Lord, then he desists, he shall have what has already passed, and his affair is in the hands of Allah; and whoever returns (to it)– these arc the inmates of the fire; they shall abide in it.

You get the idea.

Notice this is not an out-of-context rant demonstrating Islamophobia. This comes from the Koran itself. It is quotes like these that form the basis of Sharia Law.

Before we move forward, take a moment to watch this video outlining some important points about Sharia Law and its influence in the American banking system:

So now let’s take a look at the terms which were introduced above.  First is “Grameen“ – just what is it?

Well, it is a banking movement supposedly for the poorest among us. A proposed mix of capitalism and social responsibility, created by a man named Muhammad Yunus,  that accommodates the religion of Islam at the expense of everyone else.  It is banking based on making risky, Sharia-compliant loans to those least able to repay and financed by those with the most ability to do so.  (Notice the hint of Karl Marx there? – From those according to their ability to those according to their needs.)

Heralded by so many corners, like the United Nations, the Nobel Peace Prize committee and the progressive left in this country, Grameen banking is to be the solution to all the world’s ills. Sound familiar?  It should. Think about Fannie Mae and Freddie Mac, think ACORN, think home loans, think about Clinton’s almighty forecasted surplus. Think about Obama stimulus claims, cash for clunkers and economic justice. Think Van Jones.

In order to spin the situation and muddy the waters of understanding, a new word was manufactured. Microfinance.  Here is the ‘nuts and bolts’ of microfinance, microcredit, microdebt, or whatever one wishes to call it: One set of rules for you, who is not bound by the Koran and the Sharia Law it creates, and another set of rules for those who are. So much for equality, huh?

Imagine this situation. You have a bank savings account with a balance of a hundred thousand dollars. You also hold a home mortgage of about the same amount. Your bank leverages your money fractionally and then makes Sharia compliant loans abroad for nine hundred thousand dollars, set beside your mortgage. You pay all interest on that mortgage, while your savings earns next to nothing, but as it pertains to the rest of that cool million – not so much.  So what is the big deal?

Well, here is the big deal. That bank finds itself over-leveraged as a result of it’s attempted social engineering and unable to meet the demand for withdrawals. Remember that hundred grand you have saved? Well, you have decided to pay for your grandson’s college instead of seeing him saddled with student loans. In order for your bank to cover your withdrawal, it requires a taxpayer funded bailout so it doesn’t fail.  Do you see it yet?

You pay interest on the front side of loans that you take on, and now you pay taxes on the backside to fund a bailout because your bank used your money to make social engineering investments that do not provide enough returns to sustain it’s own chosen activity. This so that do-gooders can “spread the wealth around”. Many avenues to accomplish this spreading have been developed. Think “green”. Environmentalism is the ultimate social engineering tool useful in every branch of government to the ends of controlling private business.

To be sure, this issue has permeated the entire banking industry and by extension every other industry. Combining environmentalism and banking is a wicked marriage. Endless control is created and Liberty itself is on the chopping block.

From your fifty dollar bank account to the Bill Gates fortune, this parasitical idea of Sharia complaint banking financed on the backs of interest and tax paying Americans is eating prosperity alive. Where do we begin to even understand so we can rid ourselves of this epidemic? Sometimes, you just have to plop down somewhere in the middle of it all and start there.

ShoreBank is great place to start. Truly amazing is it’s history and undeniably profound are the generational ramifications of it’s activities.  The more you read about it, the more open your eyes become, the more moments of insight you will experience. Of this, there is no doubt. The web of ties that are exposed when reading about ShoreBank is shocking.

Why are community-based banks, like ShoreBank and its affiliates,  financing projects in Kenya?

Why does the United States send seemingly endless amounts of taxpayer dollars to Egypt, Jordan, Pakistan and others in the form of “military and economic aid”?

Why does the United State’s government force the purchase of oil and natural gas from Muslim and socialist dominated-countries by legislatively or judicially disallowing access to resources found here in our own neck of the woods?

Why did Al Qaeda attack the World Trade center — twice?

Why did the United Nations refuse to relinquish control over Saddam’s Iraq and it’s oil revenues?

How is our own government managing to gain access to control over the smallest of life’s decisions like what vehicles we drive or where we set our home thermostats?

What is really wrong with the banking industry and what is it going to take to fix it?  What is the real cause of the so called “meltdown”?

Ponder these questions deeply and then seek out honest answers. Prepare yourselves for the facts you will be faced with and what those facts mean. Political correctness need not apply for this job because actual correctness, absent that qualifier, is required.

As Tim Geitner tries to offer every explanation besides the real one concerning AIG, maybe there exists at least one courageous elected official who will ask him directly to explain Grameen banking, microfinancing and how the progressives drove the American Economy into the ground by bowing the American’s economy to Islamic law via the guise of political correctness known in the form of “environmentalism” and “social justice.”

Are those Fightin’ words?  Yep,  that is one thing that happens when a nation is engaged in war and Patriots actually fight back with the most powerful weapon that ever existed.  Truth.

Posted by Big Governement
March 3, 2010
1 Comment

Feeding the Deficit: The Ultimate Obesity

Controlling obesity is all the rage now in America as, indeed, it should be. Feeding the American appetite with too many of the wrong kinds of calories is exacting a terrible toll on the health of Americans of all ages. Obesity, like cigarettes, kills. In recent years, Congress, along with a compliant President Bush and now with an enthusiastic President Obama, has been appeasing another kind of appetite with reckless abandon. The toll this fiscal obesity will exact from America and our people is incalculable and Jenny Craig will be of no help.

Clearly, most Americans do not want to be force fed programs they haven’t asked for and that they know neither they, their children nor their grandchildren can possibly afford. People throughout the country are beginning to dig in their heels and a growing number of congressmen and senators know it. Seventy years ago, Japanese Admiral Isoroku Yamamoto is quoted, following his successful and deadly attack on Pearl Harbor, “I fear all we have done is to awaken a sleeping giant and fill him with a terrible resolve.” It appears that the American electorate, long apathetic and used to acquiescing by default to reckless government spending may be awakening from its long slumber. Let’s hope so, for it is the last best hope we have to rein in the destructive behavior of so many of our elected representatives of both parties in Washington and the White House strategists who lead them on.

As we noted in this column two weeks ago, Moody’s has fired the first warning shot over the bow of our ship of state. The international credit-rating agency warned that America’s AAA credit rating would be in jeopardy (given our spiraling debt) if economic growth does not keep pace with the projections made by the Obama Administration. China and Japan, our largest sovereign creditors, fired two more warning shots at last week’s treasury auction when they decreased their purchases of U.S. debt. But is anyone in Washington listening?

Let us stipulate that our concern is not that America is in danger of defaulting on its ever-mounting debt as Greece and, perhaps, Spain, Italy, Ireland and Portugal might very well be. We will always pay our bills: even if we have to print the money with which to meet our obligations when they come due. Should our creditors here in America and those abroad, however, begin to worry that they will be paid back with dollars that are worth a lot less than the dollars they loaned us, they will demand a higher rate of interest to offset that risk. If our creditors, to whom we are more beholden than ever before, were to decide they want a substantially higher rate of return on their money than we currently pay (approximately 3.6% for 10 year maturities and 4.6% for 30 year maturities) every segment of our society could be drastically affected.

Of equal if not greater concern, however, is that the dollar’s continued position as the world’s reserve currency is no longer certain. As our deficit widens and our debt grows nations on whom we depend are beginning to explore alternatives to the dollar as the world’s reserve currency. This should be causing many sleepless nights for those in Washington who are responsible for the health of our economy. The loss of the dollar as the world’s reserve currency would not merely be a loss of prestige. Such an occurrence would cause the dollar’s purchasing power to plunge and affect the standard of living of nearly everyone. A reserve currency is the currency nearly all nations hold in order to transact all international business (such as for commodities) that are priced in the reserve currency of the day. Think oil, gold, copper, etc. In many instances it is the currency nations use to settle their debts as well, and it is also the currency nation’s hold for the proverbial rainy day. A transfer of the world’s reserve currency status from the dollar to, say, the Chinese renminbi would cause a run on the dollar as sovereigns began trading their collective trillions in dollars for renminbis. Loss of reserve currency status could represent a crisis of unimaginable proportions causing a sudden and precipitous drop in the value of the dollar. Far fetched? No, not at all. In fact, there is a serious move among a number of nations, including China, which during this century will become the world’s largest economy, to begin preparing for such a development. Nations on whom we depend for trade, loans and investment are eyeing developments in Washington with alarm. Again, we ask, is anyone in Washington listening?

While few people can really predict when and if such an adverse event might occur, there is no question that the odds go up as our national indebtedness goes up. And it is going up exponentially.

Our total debt is now as large as our entire economy, if we include what we owe here in America (to domestic holders of treasury obligations) and what we owe to China, Japan, the Saudis and an assortment of oil-supported sheikdoms and other smaller foreign creditors as well as what we owe to our own Social Security and Medicare trust funds and our collective state and municipal obligations. Greece, the basket case of Europe, has total debt of 108% of its economy. Our total debt stands at just a fraction under 100% (98.2% to be exact) of our entire economy ($14 trillion of total debt vs. $14.25 trillion of total economic output. While we suppose we can always cancel some (or all) of that portion of our debt that is the result of what our government has borrowed from the so-called Social Security and Medicare trust funds, this is not a pretty picture.

Carmen Reinhart and Kenneth Rogoff, economists at the University of Maryland and Harvard, respectively, in their recent book with the tongue-in-cheek title, “This Time is Different: A Panoramic view of Eight Centuries of Financial Crises,” sound an ominous alarm. They note that every time an economy begins precipitously to run up debt, various, so-called, experts are always there to provide comforting advice that “things are different” and we needn’t be concerned about the debt “this time.” The authors then go on to demonstrate, convincingly we think, that this invariably has been, and continues to be, just plain wrong. They found that, even in a developed economy, once public debt reaches 90 percent of economic output, it begins seriously to stifle economic growth. While we make no pretense of being qualified to attest to the findings of these accomplished economists, we get little comfort from the reassurances of the Obama Administration’s economists that, “this time it’s different.” We fear that it is not. We are spending with abandon and exaggerating (outrageously, we think) what this spending is accomplishing. “Hail Mary” passes rarely work in football and certainly never work as economic policy.

We have now spent (or committed to spend) nearly a trillion dollars to “stimulate” the economy (exclusive of the TARP bailouts and new stimulus proposals) and all we really have to show for it is the fastest increase in our deficit in history. Claims of jobs saved are fatuous. How do we even begin to assess the cost of a trillion dollars being vacuumed out of the capital markets by the government instead of being available for private investment and job creation in the private sector?

Harvard economics professor Robert Barro, writing in the Wall Street Journal last week took serious issue with Christina Romer’s (Chair of President Obama’s Council of Economic Advisors) estimates of the multiplier effect of government stimulus dollars. Professor Barro’s analysis indicates that, over five years, the President’s stimulus package trades $600 billion of public spending for $900 billion of private expenditure. It is, he notes, a bad deal.

Given that 77% of the stimulus money was still sitting in Washington at the end of last year, the notion that the stimulus program was putting people to work (net of jobs that otherwise would emerge in the private sector) in any significant way was patently absurd. As Democratic Senator Evan Bayh, one of the more respected and analytical members of the Senate, said when announcing his decision not to seek re-election, “if I could create one new job by working in the private sector, that would be one more job than Congress has created in the past six months.” Notice how no one mentions, “shovel-ready jobs” anymore. It was an empty sales line a year ago, and it’s an empty sales line now. But this time everyone knows it. We know that roughly 50% of the stimulus money will be directed to existing government agencies such as Health and Human Services and the Department of Education. Again, a tremendous increase in spending to existing government agencies disguised as economic stimulus. Worse yet this added spending will become the baseline for future budgeting.

It would be wrong and unfair to lay this gathering storm at the feet of President Obama. The storm clouds began gathering long before President Obama became president, indeed, long before President Obama was even old enough to vote. But President Obama came to office promising change and has governed, instead, by greatly compounding the errors of his immediate predecessor and most other democratic and republican administrations of recent decades.

It would take a courageous and masterful leader and a magical moment to say to the American people, “the government has made entitlement promises to you that we can’t keep…that we can’t afford, and that we can’t place on the shoulders of our children. We’re going to have to establish a “means test” for Social Security and Medicare and even the age at which our people will be eligible to begin receiving benefits. We’re also going to have to eliminate hundreds, maybe thousands, of programs that are wasteful or redundant or that we can do without. Henceforth, there can be no programs that are ‘untouchable.’”

It seems we will have to wait for such a leader and such a magical moment. We can only hope he or she arrives in time.

Posted by Big Governement
March 3, 2010
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The Bob Corker Bailout Sellout

While the media and most of the public are consumed by the health care death march, the Senate is deep in negotiations to pass a sweeping re-regulation of the financial sector. As the public knows, ObamaCare is an attempt to regulate 1/6th of the US economy. The financial ‘reform’ proposal, though, will impact the other 5/6ths of the economy. In many respects, the financial services ‘reform’ is much more damaging to the economy and our future competitiveness. Worse, its passage is being aided by Bob Corker.

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Sen. Bob Corker (R-TN) has snatched defeat from the jaws of victory with his complete capitulation and total surrender on the Financial Services bill.  The bill, passed by the House with a $4 trillion bailout provision, making bailouts the permanent policy of the United States government, was on it’s last legs until Corker came to the rescue.  Now the Washington Post and other are reporting that Corker and ethically-challenged, retiring Sen. Chris Dodd (D-CT) are on the verge of a deal to breathe life back into the regulatory and bailout scheme.

Let’s be clear – the President and the hard left want this bill. David Reilly of Bloomberg described the measure as Barney Frank’s $4 trillion gift to the banks. Reilly wrote:

Here are some of the nuggets I gleaned from days spent reading Frank’s handiwork:

– For all its heft, the bill doesn’t once mention the words “too-big-to-fail,” the main issue confronting the financial system. Admitting you have a problem, as any 12- stepper knows, is the crucial first step toward recovery.

– Instead, it supports the biggest banks. It authorizes Federal Reserve banks to provide as much as $4 trillion in emergency funding the next time Wall Street crashes. So much for “no-more-bailouts” talk. That is more than twice what the Fed pumped into markets this time around. The size of the fund makes the bribes in the Senate’s health-care bill look minuscule.

– Oh, hold on, the Federal Reserve and Treasury Secretary can’t authorize these funds unless “there is at least a 99 percent likelihood that all funds and interest will be paid back.” Too bad the same models used to foresee the housing meltdown probably will be used to predict this likelihood as well.

– The bill also allows the government, in a crisis, to back financial firms’ debts. Bondholders can sleep easy — there are more bailouts to come.

– The legislation does create a council of regulators to spot risks to the financial system and big financial firms. Unfortunately this group is made up of folks who missed the problems that led to the current crisis.

– Don’t worry, this time regulators will have better tools. Six months after being created, the council will report to Congress on “whether setting up an electronic database” would be a help. Maybe they’ll even get to use that Internet thingy.

Sources in the Senate have made conservatives aware of a sleight of hand that Sen. Corker and Dodd may use to try to get this bill through the Senate. The discussion draft contained the infamous bailout provisions. But we have been warned that the “compromise” may take the bailouts out so they can be inserted back into the bill through the House Senate conference committee.

Does this sound like a bill a senior Republican Senator should be trying to revive? Since when do Republicans believe in more government, more bureaucrats and more Washington red tape?

Bob Corker’s Senate office number is 202-224-3344.

Posted by Big Governement
March 3, 2010
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The Bob Corker Bailout Sellout

While the media and most of the public are consumed by the health care death march, the Senate is deep in negotiations to pass a sweeping re-regulation of the financial sector. As the public knows, ObamaCare is an attempt to regulate 1/6th of the US economy. The financial ‘reform’ proposal, though, will impact the other 5/6ths of the economy. In many respects, the financial services ‘reform’ is much more damaging to the economy and our future competitiveness. Worse, its passage is being aided by Bob Corker.

83985149BS001_SMIALOWSKI

Sen. Bob Corker (R-TN) has snatched defeat from the jaws of victory with his complete capitulation and total surrender on the Financial Services bill.  The bill, passed by the House with a $4 trillion bailout provision, making bailouts the permanent policy of the United States government, was on it’s last legs until Corker came to the rescue.  Now the Washington Post and other are reporting that Corker and ethically-challenged, retiring Sen. Chris Dodd (D-CT) are on the verge of a deal to breathe life back into the regulatory and bailout scheme.

Let’s be clear – the President and the hard left want this bill. David Reilly of Bloomberg described the measure as Barney Frank’s $4 trillion gift to the banks. Reilly wrote:

Here are some of the nuggets I gleaned from days spent reading Frank’s handiwork:

– For all its heft, the bill doesn’t once mention the words “too-big-to-fail,” the main issue confronting the financial system. Admitting you have a problem, as any 12- stepper knows, is the crucial first step toward recovery.

– Instead, it supports the biggest banks. It authorizes Federal Reserve banks to provide as much as $4 trillion in emergency funding the next time Wall Street crashes. So much for “no-more-bailouts” talk. That is more than twice what the Fed pumped into markets this time around. The size of the fund makes the bribes in the Senate’s health-care bill look minuscule.

– Oh, hold on, the Federal Reserve and Treasury Secretary can’t authorize these funds unless “there is at least a 99 percent likelihood that all funds and interest will be paid back.” Too bad the same models used to foresee the housing meltdown probably will be used to predict this likelihood as well.

– The bill also allows the government, in a crisis, to back financial firms’ debts. Bondholders can sleep easy — there are more bailouts to come.

– The legislation does create a council of regulators to spot risks to the financial system and big financial firms. Unfortunately this group is made up of folks who missed the problems that led to the current crisis.

– Don’t worry, this time regulators will have better tools. Six months after being created, the council will report to Congress on “whether setting up an electronic database” would be a help. Maybe they’ll even get to use that Internet thingy.

Sources in the Senate have made conservatives aware of a sleight of hand that Sen. Corker and Dodd may use to try to get this bill through the Senate. The discussion draft contained the infamous bailout provisions. But we have been warned that the “compromise” may take the bailouts out so they can be inserted back into the bill through the House Senate conference committee.

Does this sound like a bill a senior Republican Senator should be trying to revive? Since when do Republicans believe in more government, more bureaucrats and more Washington red tape?

Bob Corker’s Senate office number is 202-224-3344.

Posted by Big Governement
March 3, 2010
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Batter Up!

Batter Up!

Posted by Big Governement
March 2, 2010
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New Government Programs Always Cost More Than Predicted

fortune teller

It’s time to stop playing along with this ridiculous game called, “The government says the health care bill will cost…” It’s always wrong. And it’s always wrong by underestimating the cost. Why don’t the Republicans point this out? (Probably because they’ve been big government spenders, too.)

Look back at when Medicare was first created:

At its start, in 1966, Medicare cost $3 billion. The House Ways and Means Committee estimated that Medicare would cost only about $ 12 billion by 1990 (a figure that included an allowance for inflation). This was a supposedly “conservative” estimate. But in 1990 Medicare actually cost $107 billion.

In 2007, total Medicare spending was $431 billion! That isn’t even close to the costs predicted in 1965. Why do we act like the numbers coming out of Congress and the CBO have any basis in reality?

The predictions for Medicaid were just as wrong:

In 1987, Congress projected that Medicaid – the joint federal-state health care program for the poor – would make special relief payments to hospitals of less than $1 billion in 1992. Actual cost: $17 billion.

The list goes on. The 1993 cost of Medicare’s home care benefit was projected in 1988 to be $4 billion, but ended up at $10 billion. The State Children’s Health Insurance Program (SCHIP), which was created in 1997 and projected to cost $5 billion per year, has had to be supplemented with hundreds of millions of dollars annually by Congress.

Yet, Obama, Pelosi, etc. tell us with a straight face that this new plan won’t really cost as much as we think. That’s not even counting the smoke and mirrors they’re using on the CBO to come up with their happy deficit reduction numbers.

We don’t know enough to create adequate models to predict the outcomes, the models we do have are being fed flawed data, yet we continue to act like we know what will happen five, ten, twenty and 100 years from now.

Does anyone really believe that Congress can design a health care system that will provide the best care at the lowest cost?

Here is an example of how dumb some of our “leaders” are. Congresswoman Maxine Waters doesn’t even know the difference between the discount rate and the federal funds rate. Watch her make a fool of herself while questioning Ben Bernanke. By the way, she’s on the Financial Services Committee and is on the Subcommittee on Financial Institutions and Consumer Credit! God, help us.

How about getting government out of the way and letting us work this out with our doctors.

1) No mandates on insurance. I choose what I want.

2) I can buy any plan I want from any state.

3) I get the same tax breaks for insurance that my employer gets.

4) I can put as much as I want in my Health Savings Account – tax free – as long as I only spend it on health care.

5) I can pay for routine care out of my HSA and buy a catastrophic insurance plan only.

6) I buy health status insurance so I will always be insurable even if I develop a “pre-existing condition.”

No new government program is necessary. I just saved us a gazillion dollars. You’re welcome. Let’s roll.

Posted by Big Governement
March 2, 2010
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Pork Report, March 2, 2010: Beer Museum Edition

Spending Under the Influence: National Brewery Museum receives a $449,574 grant from the Federal Highway Administration

The Secretary of Transportation says “it’s fun playing Santa Claus to states and cities around the nation”

…as the Department of Transportation furloughs federal bridge and road inspectors

Washington politicians and bureaucrats enjoy ‘lavish’ government pensions; Federal employees can draw on their pension beginning at age 50 and can get as much as 80 percent of their final salary

National Institutes of Health spends $3.9 million to develop ‘Avatar’ sex-ed video game for kids

National Science Foundation pays to produce a “free” CD for road trips on a highway in California

Director of Louisiana housing agency charged taxpayers for personal expenses; Unallowable charges included a $150 bill at hair salon, items from a sporting goods store and Wal-Mart, and telephone and electric bills

BAILOUT WATCH: Fannie Mae seeking a $15.3 billion bailout

78 percent of Americans say government spending is out of control and 59 percent of U.S. citizens do not trust the federal government

Posted by Big Governement
March 1, 2010
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Graft, Greed and Waste in State Government: New Mexico Edition

In early 2008, New Mexico Governor Bill Richardson grabbed national attention when he ran for the Democratic nomination for President. He dropped out early in the race but still made headlines for endorsing Obama over Hillary. As thanks, Richardson was named the nominee for Commerce Secretary.  One of the first scandals of the Obama Administration followed almost immediately.  Due to a controversy surrounding a pay-to-play scandal, Richardson was forced to withdraw his name from consideration after only one month.

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Richardson quietly slipped out of the national spotlight and most Americans forgot about New Mexico’s corrupt Governor.  Most don’t realize that prosecution for the scandal was quietly discontinued when the Obama team drained the investigator’s budget resource, leaving them unable to pursue prosecution.  The case is still pending and will likely remain that way.

Now back in New Mexico in his final year as Governor, the behavior of a man who was an inconvenient nuisance to the Obama team has revealed itself to be nearly cataclysmic to my state’s future.

Just seven years ago, New Mexico was one of only a handful of states in the black, thanks to the leadership of our previous Republican Governor.  Now, we’ve got an estimated $500 million deficit this year thanks to a government that continues to loot the pockets of taxpayers.

Aside from the absurd corruption, pay-to-play scandals and shady investment deals one of the most obvious evidence of poor management is the sheer size of New Mexico’s government.  With new state agencies and 4,500 new employees, our state government has grown by more than 50% in the last 7 years costing taxpayers $250 million annually. Further, the numbers don’t even include the hundreds of exempt political appointees now drawing a government paycheck.  Those people got jobs as payback for family, favors and financial contributions. Estimates put new political appointees in the neighborhood of 450 costing taxpayers around $50 million a year.

Already I’ve accounted for more than half the budget shortfall, and I haven’t even begun to talk about the fraudulent investment schemes, pay-to-play scandals and pork projects that have nearly sunk our state.

To put it into perspective, for every 100 private sector employees there are 24 state and local government employees.  The average ratio is 12 per 100.  I can assure you, my interaction with government in this state is not twice as good as it was seven years ago.

And now, the Governor who doubled the size of government has to find a way to pay for his distends.  His answer?  Well, it isn’t cutting state employees.  And it isn’t cutting unfriendly regulations to grow small business.   Nope.  His answer is—you guessed it—NEW TAXES.  During our last legislative session, lawmakers proposed taxes on candy, cigarettes, soda and even tortillas.

All proposals died a slow death and our legislatures failed to come up with a budget.  Now, they’ve been called in to a special session that begins next week.

I am running for Governor of New Mexico to put an end to the graft, greed and waste that has run rampant in New Mexico.

The moment I am elected, I will immediately demand the resignation of every unnecessary political appointment.  I made a pledge this week to roll back the number from over 600 to 167.   I have called upon the Democratic candidate, Lt. Governor Diane Denish, to make the same pledge. The Lt. Governor has been trying to distance herself from the present administration’s defective distends, but a promise to return to a reasonable number of political positions would be a substantive statement, should she be willing to make it.   Sadly, I expect silence will be her response.

The issue of bloated government is not limited to New Mexico.  The waste here is merely a reflection of the corruption that is occurring nationally. For those among us who challenge the wisdom of Federal Stimulus dollars, look no further than the state of New Mexico for evidence of its failings.  Those dollars only fuel our inefficient government and do nothing to force our government to fix itself.

Posted by Big Governement
March 1, 2010
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It Is Time For a New Tax Revolt

We will never control our government until we control the federal tax system.

It is corrupted and unfair and feeds unchecked government growth. It has made the federal government far more powerful than what was supposed to be its equal—our state governments. The income tax hides the cost of the government from plain sight and provides endless amounts of our money for the advancement of politician’s personal ambitions. It is very good for those in Washington and very destructive for the rest of us.

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We’re being treated as if our only value as citizens is how much more money we can be made to give up from our paychecks. When it comes to more and more spending and more and more taxes, it is a one-way conversation. I’m ready to talk back and I don’t think I’m alone. That’s why I’m calling on every patriot to join me in a tax revolt march on Washington , D.C.

I’m leading a Tea Party Patriot team in a growing on-line tax revolt which arrives in Washington , D.C. on April 15th to merge with the huge physical rallies that are already planned for that day. It’s a new technology that allows people to choose a graphic “avatar” to digitally march on-line to Washington with hundreds of thousands of other Americans. Even the homebound, recovering veterans and the elderly can add their voice to this new American chorus.

I’m seeing a lot of people remembering that politicians are supposed to follow the will of the people—not trample it. Like Boston Harbor , this is where we again make our stand.

First you choose an avatar at: www.onlinetaxrevolt.com. Then you choose a team. Michael Reagan has a team, Neal Boortz has a team, Ken Hoagland of FairTax.org has a team and I have a team, among a growing number of others. Every day after you join the march, you can check your progress toward Washington , D.C. on a Google Earth map of the United States . You can see other marchers from your hometown, read blogs from the leaders and count the growing number of citizens willing to make a stand.

The on-line tax revolt is open to all whether they favor the Flat Tax, the FairTax or the kind of simplification that President Reagan promoted and achieved. What this march is really about is shifting public policy back to favor the public instead of the political elite. Right now, the on-line revolt has 100,000 marchers and is growing by 1,000 people per hour. It’s wake up call to those in the halls of power.

This nation began in a tax protest against the rule of royalty, indifference to what were once loyal citizens of the crown and the arrogance of power. A brand new form of government began here that held that government power could only be granted with the consent of the governed. Well guess what? The aristocrats are back, the arrogance of power is back and even taxation without representation is back as our government pledges the earnings of future, unborn, generations of American citizens to secure mind-numbing levels of national debt today. It will ruin the country if we don’t stop it.

This is not the government we learned about in our civics class and not the liberty for which our forefathers shed blood. It’s time for the next great American tax revolt and I hope you join me.

Posted by Big Governement
March 1, 2010
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Liberty and Government: An American Tipping Point

Thomas Paine said that “It is the duty of every patriot to protect his country from its government.”  He did so amidst the long shadow of a centralized government which regarded individual rights as secondary to its own.  Today, “56% of people questioned in a CNN/Opinion Research Corporation survey  . . . say they think the federal government’s become so large and powerful that it poses an immediate threat to the rights and freedoms of ordinary citizens.”  They do so in the shadow of a government seeking to take control of nearly 17% of the US economy, if not that portion of our lives, in the name of caring for our health.

statue_of_liberty

For any that have cared to listen to the debates over multi-trillion dollar spending programs, tax hikes, cap and trade or health care, at issue is not simply whether those huge government programs would provide lasting solutions – they will not – at issue is our basic right to Liberty.  Quite frankly, it was never the assumption of the Founding Fathers that it was the role of government to provide a moving target standard of living for Americans.  It was their sincere hope that the government of limited powers they set up would allow people to pursue their lives, Liberty and happiness.  To do so they, wanted to hamstring government’s ability to act – not ours.

Since then, of course, the scale has tipped in favor of government power over our pursuits.  Each step along the way, those concerned with our Liberty have heard the echoes of Senator Daniel Webster when he said:

“Good intentions will always be pleaded for every assumption of authority. It is hardly too strong to say that the Constitution was made to guard the people against the dangers of good intentions. There are men in all ages who mean to govern well, but they mean to govern. They promise to be good masters, but they mean to be masters.”

As you consider his words, it may worthy to also consider the lives of Americans, at the dawn of these United States, and the lives of Americans today.

We can start by noting that the freedom of the early American settlers’ was curtailed perhaps only in relation to their ability to remain safe.  The bravest among them ventured westward and put stakes in the ground to claim their unbridled Manifest Destiny and ours.  Today, by contrast, property owners’ use of land, already their own, is vastly curtailed by government restrictions, setbacks, and zoning limitations – not to mention often unwarranted and often uncompensated takings.

We should also note that, at the birth of our Nation, a loose confederation of unruly states, fresh from their Revolutionary War victory had to be coaxed into ratifying the Articles of Confederation – Articles that proved so unfastened that a more “perfect union” was advocated less than a decade later.  Today, the Federal Government promulgates hundreds of thousands of pages of superseding laws and regulations that ties the hands of those States whose powers were once thought to be “numerous and indefinite.”

Beyond those considerations, even the Founding Fathers of our Country did not see fit to impose an income tax on Americans.  Indeed, no less than Chief Justice John Marshall said that “in a free government almost all other rights would become worthless if the government possessed power over the private fortune of every citizen.”  Today, that is not even a distant memory for Congressional leaders who regularly advocate income tax increases and who, along with state governments, have taxed America with a myriad of taxes and fees simply unimaginable in Marshall’s time.

If you are as yet  unpersuaded by those examples, consider that Presidents Jefferson and Madison did not believe that our Constitution permitted the government to levy taxes to pay for roads yet, today, our government does just that to not only pay for the roads but subsidize the purchase of the cars driven on those roads.

So what happened between now and then?  Did our rights become worth less overnight?  Did those numerous and indefinite powers our Founders thought they were reserving to the States become lost without our knowing it?  Or did we simply fail to safeguard ourselves despite Jefferson’s warning that the “natural progress of things is for government to gain ground and for liberty to yield.”

It is, of course, the sum of those things and more – all of which brings us to today. With so many people against the direction of our government, let alone this latest government takeover, only the arrogance of a central planner could deem their actions as listening to the American people let alone responsive to them.  In truth, as so many Americans now do, we must understand that their good intentions are only pleaded in pursuit of their assumption of authority.  It is up to the Thomas Paine in the rest of us to guard our country  against the dangers of their good intentions lest the American experiment with Liberty reach beyond this tipping point.

Posted by Big Governement
March 1, 2010
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Why Larry Kudlow Must Run

The prospect of CNBC analyst Larry Kudlow seeking the Republican and Conservative Party nominations to oppose Sen. Chuck Schumer has become a cause among Tea Party folks, Conservatives, Republicans and many on Wall Street. Not since James L. Buckley won a US Senate seat in 1970 have New York Conservatives been so excited about a statewide political race.

Pick Up the Mantle

Pick Up the Mantle

I don’t know Kudlow well. We met several times during the Reagan years but it was at Buffalo Congressman Jack Kemp’s 2009 memorial service that I got reacquainted with the pro-growth enthusiast. Kudlow has been on on my STONEzone TEN BESTED DRESSED LISTtm since 2008. I admire him as an unabashed apostle of hope and optimism and opportunity on television and radio. His are the politics of Ronald Reagan and Jack Kemp, who Kudlow calls his mentor.

It goes without saying that Chuck Schumer needs a vigorous challenger; he is perhaps the most odious, pushy, abrasive and self-absorbed jerk in Congress today. His pork-fests are legendary, and he narrowly escaped indictment for corruption as an Assemblyman before becoming the master of the “pay to play” game in Washington.

But Kudlow’s potential candidacy is about something even more important than sending Schumer packing.

Today leftist historians are rewriting history, burying supply-side economics and recasting what really happened under Ronald Reagan.

Relight the Torch

Relight the Torch

Their mantra – the Reagan tax cuts caused the deficit – is dead wrong. Government revenues soared under Reagan – so did Congressional spending which is the real cause of federal deficits.

Reagan and Kemp transformed the Republican Party from the party of the wealthy to the party of the workingman. It was the Bushs who carted us back to the country club. Still, the 1992 defeat of President George HW Bush who raised taxes demoralized those who understood the need to keep the “read my my lips” pledge. Although W. was a tax-cutter the insane levels of spending undermined growth and tax-cutting became dicredited.

As a result, the pro-growth wing of the Republican Party has no leader today, no one to carry the banner of growth and opportunity and free markets.

Larry Kudlow can make a case for economic growth at center stage in the media capital of the world. In the United States Senate, Larry Kudlow would have the bully pulpit. And make no mistake – he would use it wisely.

It has bothered me to no end that The Washington Post never ran an obituary of Jack Kemp, whose 1988 campaign for President I ran in New Hampshire. The newspaper only mentioned his death in passing, relegated to the sports page.

The message behind the Beltway Bible’s dismissive treatment of one of the lions of the Reagan Revolution is this: tax-reduction didn’t work, so Kemp’s greatest achievements were on the football field.

Conservatives cannot let them rewrite history, and Larry Kudlow can snatch away their pen. He was present at the birth of the economic prosperity Ronald Reagan brought to America. So it is up to him to pick up the Kemp banner; he must relight the Reagan torch.

Win or lose, a Kudlow campaign would re-energize the growth wing of the Republican Party. That alone is worth running for, but he can certainly beat Schumer whose approval rating has dipped to a record low.

Some decry Kudlow, saying he was wrong in his economic predictions as our global economic meltdown approached. But who was right? Here is what we do know: taxing and spending got us to where we are today, and higher taxes and more pork spending are making it far worse. This is Chuck Schumer’s Washington, and it is NOT the answer.

But the 2010 campaign is not about the past, it’s about the future.

Kudlow would run an uplifting, erudite and issue-oriented campaign in the style of Jack Kemp. Although he cannot match the $19 million in blood money packed in Schumer’s war chest, Kudlow is well liked on Wall Street and at the Tea Parties and he can raise significant late dollars – big and small – to be competitive on television. As a skilled communicator in America’s Medium, Kudlow would wear well with a broader audience.

In the end, it was a popular draft movement that pulled Jim Buckley and Alfonse D’Amato into their New York Senate races, and they both won tough campaigns. In perhaps the most important draft since Goldwater, Larry Kudlow would attract thousands of young conservative activists and he would re-invigorate the Reagan/Kemp wing of the Republican Party.

Pick Up the Banner?

Pick Up the Banner?

I say run, Larry, run.

Posted by Big Governement
February 28, 2010
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Fiscal Death by Welfare

Ironically enough, the medicine applied by our state as the antidote for our ills has proven to be poison.  The welfare state is killing our nation.  Today entitlement spending makes up nearly half of our budget.  Long term, we know that there will be no way to pay off our unfunded obligations — we will go bankrupt.  There will be three options ultimately, though ultimately can come quite suddenly: default, hyperinflation or abolition of the welfare state.

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Default is considered by many to be an impossible option as it would likely lead to mass chaos given the necessary suspension of many government services, not to mention the practical reality that WE are the collateral in the event of default.  To default is to be honest, and to be honest is anathema to the state.

Hyperinflation in my view is the most likely outcome given the massive increase in the money supply, which is good for politicians until it hits because it allows them to kick problems down the road and impose a stealth tax.  Currently, government is toeing the line between monetizing debt and intervening to keep its borrowing rates down, while incentivizing banks to keep money in their vaults or pump it into the stock market.

I believe that as the downturn goes on the government will blame the banks for the lack of economic growth and force them to allocate credit to chosen political entrepreneurs and other bad credit risks, leading to massive inflation in prices which they will likely blame on evil speculators and greedy price gouging companies.  Hyperinflation would allow the government to pay for the welfare state –  by writing entitlement checks in worthless dollars and lead to economic paralysis as constantly rising prices would make economic calculation and thus commerce impossible.

The final option would lead to the crucifixion of politicians.  Of course, this might not be such a bad thing.  All joking aside, there is a reason that entitlement spending is categorized as “mandatory” spending in our budget.  It is wrongfully viewed as an essential function of a civilized western nation, and its end would be met with a serious backlash from all of the welfare state’s recipients.

Yet while default is the most honest option, hyperinflation the most likely and abolition the most untenable, in my view it is the third option which is the inevitable end, regardless of the path we choose, with the only question being whether we take our lumps now or at some unknown and jarring point in the future.

But it never had to be this way.  Back in February of 1887, Texan farmers were struggling as a severe drought was killing their crops.  Congress was looking to pass an appropriations bill to bail out the ailing farmers.  President Grover Cleveland had the following to say on the matter:

Though there has been some difference in statements concerning the extent of the people’s needs in the localities thus affected, there seems to be no doubt that there has existed a condition calling for relief; and I am willing to believe that, notwithstanding the aid already furnished, a donation of seed grain to the farmers located in this region, to enable them to put in new crops, would serve to avert a continuance or return of an unfortunate blight.

And yet I feel obliged to withhold my approval of the plan as proposed by this bill, to indulge a benevolent and charitable sentiment through the appropriation of public funds for that purpose.

I can find no warrant for such an appropriation in the Constitution, and I do not believe that the power and duty of the general government ought to be extended to the relief of individual suffering which is in no manner properly related to the public service or benefit. A prevalent tendency to disregard the limited mission of this power and duty should, I think, be steadfastly resisted, to the end that the lesson should be constantly enforced that, though the people support the government, the government should not support the people.

The friendliness and charity of our countrymen can always be relied upon to relieve their fellow citizens in misfortune…Federal aid in such cases encourages the expectation of paternal care on the part of the government and weakens the sturdiness of our national character, while it prevents the indulgence among our people of that kindly sentiment and conduct which strengthens the bonds of a common brotherhood.

Unfortunately, as we well know future politicians failed to heed these words.  Due in large part to the New Deal and Great Society legislation, post-Lochner era court decisions and ideological subversion of the left in media and academia, the state became the paternalistic figure that it is today.  The welfare state imposed on the people the notion that we were morally required through the force of government to help out our fellow man, an inherently immoral argument.  In so doing, the state became the institution of moral hazard.

By providing aid to untapped politically lucrative constituencies for many of life’s woes, the state altered the character of the American people.  When before, life was based on self-reliance, innovation and entrepreneurship, today a wide swath of American life is based on dependency, complacency and politics, an ironic assertion in that we built our wealth that funded the welfare state on the very foundations that the welfare state undermines.  George Will outlined this transformation eloquently in his CPAC speech.

The demoralizing nature of the welfare state in absolving people from making decisions on matters of health, career and retirement in altering our character necessarily altered our actions, the sum of which make up our economy.  By taking long term planning out of the hands of people, the welfare state led us to increase our time preferences.  Time preference refers to our relative short term or long term orientation.  When we prepare for the long term, we make prudent decisions such as saving more and borrowing and spending less, in expectation of reaping greater rewards down the road.  On the other hand, when government taxes, reducing returns on capital and removes the need for cogent planning, we become more short term oriented, valuing more highly instant gratification achieved through spending and borrowing more to consume today.  High time preferences result in low capital formation, high real interest rates and diminished prosperity.

It should be noted that politicians are not immune to time preferences.  Since politicians are concerned most with getting re-elected, and the state came to be seen as the mechanism for spreading the wealth around to various voting blocs, naturally there grew a conflagration of welfare programs (using the term welfare loosely) funded through direct taxation, inflation and debt with little regard for the future.

The psychological and concomitant economic effects of the redistributive state cannot be understated.  What has been consistently understated is what the world would look like without the welfare state.  If we were to abolish Social Security, Medicare and Medicaid, billions of dollars would return to the hands of the people.  People would have to plan their lives more carefully and responsibly and redevelop the drive that had been taken from them by the state, and they would allocate these new funds accordingly.  This influx of new cash to be reallocated according to the preferences of consumers would lead to unimagined innovations.

How many new hospitals, pharmaceutical companies and insurers would crop up?  How many more dollars would people save for retirement and in so doing invest in the private sector?  How many charitable organizations would be created for people to voluntarily help their fellow man?  How many government bureaucrats would be unleashed into the economy and employed in productive jobs?  How many productive jobs would the private sector create?  How many people would pick themselves up out of poverty?  One fascinating anecdotal example of the types of innovations that occurred when the government did not coddle people from cradle to grave was the institution of the fraternal society, one of the functions of which was healthcare provision under “lodge practice,” whereby society members could voluntarily pool their money and draw upon it when in need of medical care.  Prices were low and service was of quality until government intervened and destroyed the practice.

Now surely, as a practical matter the scrapping of the welfare state would cause great disruption, and people expecting to receive and/or reliant on benefits would incur immediate hardships.  But with the infusion of capital back into the hands of private individuals making decisions for themselves, in the long run our standard of living would increase, our competitive advantage in the world would widen and we would restore the national character to which Cleveland spoke.  We would reverse the demoralization and economic stagnation induced by the state.  We would see the bountiful unseen benefits blocked by the massive edifice of the state that holds our people back.  It bears remembering that we didn’t grow wealthy with a safety net under us in the first place.

Our society was built on the non-aggression principle.  Individuals should be free to pursue purposeful ends so long as they do not harm others.  Government’s role is to protect us from external harm by providing defense, public safety and the courts.  By government attempting to protect us from the harm of our own decisions, imposing morality on the people through forcing some to subsidize others, government becomes an immoral, socially and economically destructive institution and perpetuates a cycle of intervention, dependency, crisis and further intervention.

As the healthcare debate rages on, and in context of the reality on the ground today, it surely seems as if we are miles from the end of the welfare state.  But indeed, we are going to arrive at the end of the experiment of the Ponzi welfare scheme, and it will not be by government fiat but by gravity.  This will be a blessing in disguise, though the short term pain of a sudden collapse will be great.  Traumatic as the collapse of the welfare state will be for those reliant on it, collapse will go quite a ways towards restoring power back with its rightful owners, the people.

Posted by Big Governement
February 26, 2010
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Freedom is a Right, and Any Health Care Bill That Takes Away Americans’ Freedom is Wrong

After the conclusion of yesterday’s nationally-televised health care “summit” hosted by President Obama, in a video for YouTube’s Citizen Tube I answered five health care questions submitted and voted on by the You Tube community.  The questions posed on You Tube are the same questions and concerns I hear from Americans across the country.  They want to us scrap the current bill and start over with common-sense, step-by-step measures that lower health care costs.  And they want to know why Congress insists on passing massive bills that no one in America has time to read or understand.  My Republican colleagues and I agree a different approach is needed – not just to health care reform, but to the way Congress works on every issue.

In the video, I respond to citizens’ questions about health care reform.  On one question, for example, about whether I believe that health care is a right, I said that, “I believe that freedom is a right, and that any health care bill that takes away Americans’ freedom is wrong.” I also answered questions about my support for health care reforms aimed at lowering Americans’ health care costs, such as medical liability reform and allowing Americans to purchase health insurance across state lines, and pledged I will insist on smaller, simpler bills and implement a mandatory 72-hour online reading period for all bills if Republicans are entrusted with the majority.

Over the past year, Republicans have used new media tools to interact directly with the American people.  Whether on Twitter, where House Republicans outnumber their Democratic counterparts two-to-one, or YouTube, where eight of the top 10 most-viewed and most-subscribed YouTube channels in Congress are from the GOP, House Republicans are listening to and learning from the American people.  Below is full text of my answers to You Tube:

“Hi, I’m Congressman John Boehner.

“First let me thank the YouTube community for submitting some very thoughtful questions and comments.  My colleagues and I believe the best ideas come from you, not from bureaucrats here in Washington.  This effort is just one more example of that.

“Before I get into your questions, I want to also make sure you know this isn’t the only chance you have to weigh in on the issues that are important to you and your family.  Visit GOPLeader.gov to send me a message, or follow and reply to GOPLeader on Twitter.  With your help, direct media is making government more transparent and accountable.  Forward this video to your friends, and let’s work together to make sure Washington listens to the people.

“The first submission is from ‘Blinn’ in Illinois.  Blinn says ‘All people voting on these bills should be required to personally read the entire bill before being allowed to vote on it. It is ridiculous that these bills are thousands of pages long. Bills should be written in clear language.’

“Blinn, Americans have the right to know what is in these massive bills before Congress votes on them, and if I become Speaker of the House, we’ll run the House differently – differently from the current majority and from past Republican ones. And if I become speaker, there will be a 72 hour reading period before any bill is brought to the floor.  It’s part of our congressional transparency Initiative – you can check it out at GOPLeader.gov/ReadTheBill.

“But in addition to that, we don’t need to have these really big bills.  We can keep these bills smaller, more targeted, so that people actually can read them and understand what they’re voting on before they come to the floor.

“Next, ‘C. Rodgers’ from Lincoln, Nebraska asks ‘Why not quit artificially limiting the market? Stop tying health insurance to employers and increase the market dramatically. Allow insurance providers to sell across state lines and increase it even more. The larger the market the lower the price.’

“This is really one of the centerpieces of our Republican health care proposal.  Marsha Blackburn talked about it today at the summit.  Democrats claim they’ve included it in their bill, but they really haven’t.

What they really are trying to do is say, we’ve got the same thing – buying across state lines – but only  if you go to a government–run exchange with a government mandated health insurance policy that’s going to be designed by the government as well.

“Republicans believe that you should be able to buy any insurance policy across state lines and you can decide for yourself fits the needs for you and your family.

“Up next we have Pat from Chicago who asks ‘Thompson Reuters had performed a study in which they concluded that 40% of healthcare waste was from unnecessary care. Unnecessary care is primarily a result of a fear of being sued, aka malpractice. What is being done to address malpractice?’

“Well Pat, you heard today that medical malpractice is really important.  And it’s not just that we reform this so that we’re not driving doctors out of states and out of communities, it’s also because of the defensive medicine that doctors practice.

“You know it was brought up today a number of times, but we never really got into the numbers.  The Congressional Budget Office says that we would save $54 billion over the next ten years in the government-run programs if we had medical malpractice reform.  PricewaterhouseCoopers issued a report in 2006 that said that we would save up to $125 billion over the next ten years.

“And we’ve got other reports.  One that came out was a Gallup study that was done just six weeks ago, and they interviewed doctors all across the country, and a majority of doctors claimed that 26 percent of the care they give is defensive medicine.  We know that if we can eliminate all of this defensive medicine that’s going on, we can dramatically lower the cost of health insurance around the country.

“Brian, a student, asks: ‘Do you believe that healthcare is a right, or that health insurance is a right?’

“We all know that if you have a health emergency in America, you have a right to be treated.  It’s as clear as that.  Health insurance – I’m not quite sure I’d call it a right – but we would clearly like to make health insurance affordable for more Americans.  And the way to do that is to drive down costs in the current system.

“I believe freedom is a right, and any health care bill that takes away Americans’ freedom is wrong.  I think Americans should have the freedom to choose their own health care, and that the government shouldn’t choose it for them.

“Finally, the number one question based on your votes comes from Chris at the University of Florida.  Chris says: ‘What is the explicit reasoning behind mandating the purchase of healthcare services?’

“Well, Chris, liberals believe mandating health care coverage will lower costs.  I believe that mandating coverage like this for everyone is unconstitutional.  And I think there are better things we can do to lower the cost of health care and make it more affordable for all Americans.

“Well, that’s the last of the questions, but this conversation on health care is far from over.  VisitGOPLeader.gov and reply to me via Twitter at GOPLeader. Thanks for watching.”

Posted by Big Governement
February 26, 2010
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Freedom is a Right, and Any Health Care Bill That Takes Away Americans’ Freedom is Wrong

After the conclusion of yesterday’s nationally-televised health care “summit” hosted by President Obama, in a video for YouTube’s Citizen Tube I answered five health care questions submitted and voted on by the You Tube community.  The questions posed on You Tube are the same questions and concerns I hear from Americans across the country.  They want to us scrap the current bill and start over with common-sense, step-by-step measures that lower health care costs.  And they want to know why Congress insists on passing massive bills that no one in America has time to read or understand.  My Republican colleagues and I agree a different approach is needed – not just to health care reform, but to the way Congress works on every issue.

In the video, I respond to citizens’ questions about health care reform.  On one question, for example, about whether I believe that health care is a right, I said that, “I believe that freedom is a right, and that any health care bill that takes away Americans’ freedom is wrong.” I also answered questions about my support for health care reforms aimed at lowering Americans’ health care costs, such as medical liability reform and allowing Americans to purchase health insurance across state lines, and pledged I will insist on smaller, simpler bills and implement a mandatory 72-hour online reading period for all bills if Republicans are entrusted with the majority.

Over the past year, Republicans have used new media tools to interact directly with the American people.  Whether on Twitter, where House Republicans outnumber their Democratic counterparts two-to-one, or YouTube, where eight of the top 10 most-viewed and most-subscribed YouTube channels in Congress are from the GOP, House Republicans are listening to and learning from the American people.  Below is full text of my answers to You Tube:

“Hi, I’m Congressman John Boehner.

“First let me thank the YouTube community for submitting some very thoughtful questions and comments.  My colleagues and I believe the best ideas come from you, not from bureaucrats here in Washington.  This effort is just one more example of that.

“Before I get into your questions, I want to also make sure you know this isn’t the only chance you have to weigh in on the issues that are important to you and your family.  Visit GOPLeader.gov to send me a message, or follow and reply to GOPLeader on Twitter.  With your help, direct media is making government more transparent and accountable.  Forward this video to your friends, and let’s work together to make sure Washington listens to the people.

“The first submission is from ‘Blinn’ in Illinois.  Blinn says ‘All people voting on these bills should be required to personally read the entire bill before being allowed to vote on it. It is ridiculous that these bills are thousands of pages long. Bills should be written in clear language.’

“Blinn, Americans have the right to know what is in these massive bills before Congress votes on them, and if I become Speaker of the House, we’ll run the House differently – differently from the current majority and from past Republican ones. And if I become speaker, there will be a 72 hour reading period before any bill is brought to the floor.  It’s part of our congressional transparency Initiative – you can check it out at GOPLeader.gov/ReadTheBill.

“But in addition to that, we don’t need to have these really big bills.  We can keep these bills smaller, more targeted, so that people actually can read them and understand what they’re voting on before they come to the floor.

“Next, ‘C. Rodgers’ from Lincoln, Nebraska asks ‘Why not quit artificially limiting the market? Stop tying health insurance to employers and increase the market dramatically. Allow insurance providers to sell across state lines and increase it even more. The larger the market the lower the price.’

“This is really one of the centerpieces of our Republican health care proposal.  Marsha Blackburn talked about it today at the summit.  Democrats claim they’ve included it in their bill, but they really haven’t.

What they really are trying to do is say, we’ve got the same thing – buying across state lines – but only  if you go to a government–run exchange with a government mandated health insurance policy that’s going to be designed by the government as well.

“Republicans believe that you should be able to buy any insurance policy across state lines and you can decide for yourself fits the needs for you and your family.

“Up next we have Pat from Chicago who asks ‘Thompson Reuters had performed a study in which they concluded that 40% of healthcare waste was from unnecessary care. Unnecessary care is primarily a result of a fear of being sued, aka malpractice. What is being done to address malpractice?’

“Well Pat, you heard today that medical malpractice is really important.  And it’s not just that we reform this so that we’re not driving doctors out of states and out of communities, it’s also because of the defensive medicine that doctors practice.

“You know it was brought up today a number of times, but we never really got into the numbers.  The Congressional Budget Office says that we would save $54 billion over the next ten years in the government-run programs if we had medical malpractice reform.  PricewaterhouseCoopers issued a report in 2006 that said that we would save up to $125 billion over the next ten years.

“And we’ve got other reports.  One that came out was a Gallup study that was done just six weeks ago, and they interviewed doctors all across the country, and a majority of doctors claimed that 26 percent of the care they give is defensive medicine.  We know that if we can eliminate all of this defensive medicine that’s going on, we can dramatically lower the cost of health insurance around the country.

“Brian, a student, asks: ‘Do you believe that healthcare is a right, or that health insurance is a right?’

“We all know that if you have a health emergency in America, you have a right to be treated.  It’s as clear as that.  Health insurance – I’m not quite sure I’d call it a right – but we would clearly like to make health insurance affordable for more Americans.  And the way to do that is to drive down costs in the current system.

“I believe freedom is a right, and any health care bill that takes away Americans’ freedom is wrong.  I think Americans should have the freedom to choose their own health care, and that the government shouldn’t choose it for them.

“Finally, the number one question based on your votes comes from Chris at the University of Florida.  Chris says: ‘What is the explicit reasoning behind mandating the purchase of healthcare services?’

“Well, Chris, liberals believe mandating health care coverage will lower costs.  I believe that mandating coverage like this for everyone is unconstitutional.  And I think there are better things we can do to lower the cost of health care and make it more affordable for all Americans.

“Well, that’s the last of the questions, but this conversation on health care is far from over.  VisitGOPLeader.gov and reply to me via Twitter at GOPLeader. Thanks for watching.”

Posted by Big Governement
February 26, 2010
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Fiscal Responsibility Lasted Two Weeks In Senate

Two weeks ago the U.S. Senate passed new rules that would require new spending to be offset somewhere else in the budget, the so-called paygo rule. They did this because Democrats and Obama got tired of being called big spending socialists and wanted the veneer of fiscal responsibility with which to cloak themselves. It lasted two weeks before the Senate broke its own new Obama-sponsored rule and went headlong for just another big spending program with its supposed jobs bill.

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On February 13 President Obama celebrated the paygo rule as a “common sense” rule that would “rein in spending.” Obama then said that the new rule would assure that Congress would be forced to “pay for what it spends, just like everybody else.”

It all sounds so grand. But it wasn’t to last. Maybe that’s why the Senate couldn’t abide by the rule, it was too much “common sense” for them to put up with?

Two weeks ago the Senate Republicans stood against the President’s “common sense” saying that the paygo rule didn’t do a thing to dampen spending but only gave Congress the dispensation to raise more taxes in order to fund the spending levels desired. All 40 Republican Senators voted against the paygo rule two weeks ago, though this week six voted to suspend the paygo rule for the jobs bill, newly seated Senator Scott Brown of Massachusetts being one of them.

Regardless, Republicans were flabbergasted that the Senate could pass what was touted as a fiscally responsible rule one week and the next break that very rule.

“I’m just not sure how you vote for this bill when it violates that rule, which you just voted for two weeks ago,” said Sen. Judd Gregg, New Hampshire Republican. “It just seems to be a bit of inconsistency that’s hard even for a political institution to justify.”

The jobs bill is but more fuel for Obama’s big government juggernaut by funding state projects while doing much of nothing for private sector jobs. But what ever the jobs bill is or isn’t on its own merits the fact is after only two weeks of celebration about those “common sense” paygo rules the whole idea was thrown right out the window at the first opportunity.

What this episode shows is that there is no shame at all even in this wondrous age of Obama’s “fiscal responsibility” and “common sense.” No Congress can be trusted to observe even its own grand ideas of fiscal responsibility.

And will President Obama scold this spendthrift Congress for breaking a rule that hadn’t even aged a month yet? One would not expect so.

Perhaps this is why Congress has a disapproval rating of between 65 and 80 percent at this point in time?

Posted by Big Governement
February 25, 2010
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Obamacare Taxing Your Savings and Investments in the Name of Fairness

Congress can raise taxes because it can persuade a sizable fraction of the populace that somebody else will pay.

– Milton Friedman

taxes

How dare you save and invest your hard earned money while other people waste it can’t afford to. It’s just not fair that you’re making “unearned” income and we need to take more of that from you to pay for our big government programs.

Terrence Jeffrey has the details from Obamascare 2.0:

“Under current law, workers who earn a salary pay a flat tax of 1.45 percent of their wages to support the Medicare Hospital Insurance (HI) trust fund, but those who have substantial unearned income do not, raising issues of fairness,” says the summary.

Fairness?! The Redistributor in Chief wants to go there? Seriously?

Right now, the people who earn very little, or nothing, get way more back in Medicare than they’ve ever paid in and there is no income cap on the Medicare tax. The rich are already paying more than their “fair share.” In addition the money being used to make unearned income has already been taxed at least once.

The Wall Street Journal points out the unprecedented nature of the taxes and how anti-growth it is:

This new ObamaCare bargain would for the first time apply the 2.9% Medicare payroll tax to “interest, dividends, annuities, royalties and rents,” so-called passive income that we are told includes capital gains, though the latter wasn’t explicitly mentioned in the proposal. This antigrowth investment tax would apply to singles earning more than $200,000 and joint filers over $250,000 and comes on top of the Senate’s 0.9-percentage-point increase in the payroll tax, which would bring the combined employee-employer share to 3.8%

Hey, wait a second, didn’t Obama say he wouldn’t raise any tax on families making less than $250k/year?

Single moms and dads making over $200k are going to be slapped with this. Obama hates single parent families!

More on the “fairness” issue: The Tax Foundation does an annual survey of US attitudes on tax and wealth. In their 2006 survey, more than two thirds of the people said no one should pay more than 20% of their income in taxes. That includes state, federal and local taxes. Of course, the top federal income tax rate for 2008 was 35%. That means most Americans believe “the rich” are taxed too much right now. If every American truly understood how excessive our taxation has already become we could create a tax revolution. (I understand we’re talking about payroll Medicare taxes and not income taxes, here, but it all goes into the tax debate. )

These new taxes will have a huge, negative impact on job growth. When will the lefties learn that whatever you tax you will get less of? This is another step into turning Medicare into a welfare program. STOP!

Three-fifths to two-thirds of the federal budget consists of taking property from one American and giving it to another. Were a private person to do the same thing, we’d call it theft. When government does it, we euphemistically call it income redistribution, but that’s exactly what thieves do — redistribute income.

–Walter Williams.

Here’s the latest episode of The Recap, my humorous, conservative look at the week in politics. Watch it, rate it and send it to your friends. Enjoy.

Posted by Big Governement
February 24, 2010
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Dept. of Homeland Security Loses over 1,000 Computers in One Year

I lose things all the time.  Last month I lost my wallet.  Once a week I lose my car keys.  Every day I lose the TV remote.

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Thankfully, I’ve never lost a computer.

The Department of Homeland Sercurity (DHS), on the other hand, cannot say the same.

New documents show that component agencies of DHS, specifically Immigration and Customs Enforcement (ICE) and Customs and Border Protection (CBP) combined to lose no less than 985 computers in fiscal year 2008.  Along with other component agencies in DHS, well over 1,000 computers were lost.

But the inventories of lost stolen and damaged equipment don’t stop with just computers.  They include radiation detectors, night vision scopes (hundreds of them), night vision goggles, lost vehicles, lost blackberries, computer servers, expensive radios and radio repeaters.

CBP maintains that the computer losses were within acceptable standards for asset management, saying the losses only represented about .5% of their total computer inventory.

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Also, CBP categorically stated that no sensitive information was on any of the 500-plus lost computers from their component agency.  If that’s true, it makes you wonder what exactly they use their computers for.  Shouldn’t one expect that a CBP computer maintains plans, databases, maps, anything at all, that relates to the securing of the nation’s borders?

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Click here for the full story.

Posted by Big Governement
February 23, 2010
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Public Sector Pay: Pucker Up Monica and Bring Your Scalpel

I’m sure Ms. Monica Potts, is a delightful person and in polite company never wets on the carpet as some of us are want to do.   And history teaches when a lady speaks ill of me, I surely have earned it.

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So I find myself  a bit out of sorts after pouring over her latest screed, at the American Prospect, because no matter how I turn this around in my little mind I reach the conclusion: Monica owes me (gasp) an apology.

Here are a few minor gaffes Monica makes:

  • I called for 20% cuts in federal, state, and local employees salaries.  She misread and uses only federal numbers to impugn either my math skills or Google’s Calculator.
  • I said we should cut public employee compensation by 20% and future increases should be tied to private wage growth.  Again, Monica appears to have misread.  I didn’t say each worker should receive 20% less, precisely because there is so much obvious inequity in the salary, pension, and overtime public employees receive.  She makes my point by explaining a government cashier earns sixteen thousand dollars more per year than a cashier in the private sector.  NJ’s governor just pointed to a 49 year old pensioner who is to receive $3.3 Milion on a $124,000 contribution.  Please know this Monica:  I don’t want to use a hatchet, I want to use a scalpel to remove 20% from public employee compensation. This doesn’t mean job reductions (that’s for another post), but if for instance a cashier quits in a huff, his eager replacement will still earn less.   And this doesn’t mean furloughs, workers will be expected to earn less and (horrors!) show up for work.

  • Monica doesn’t know of any work force that would tolerate a 20% cut in pay. Let me help her here with the aid of the interweb.  Frankly, I’m a bit stunned by her assertion, because most all Americans in the private sector have experienced this kind of wage volatility at different points in their careers… including the UAW.

It has been noted, that Monica’s type of people get a tad miffed when they investigate the minds of my type of people, so quite naturally she’d read imaginary sentences and invent sub-par ideas to attribute to my spectacular failings.

As to restitution, in my own household, when I am so deeply in error, I’m lucky to get away with an hour long foot massage as penance.  Though based on Monica’s notions of real world work, I’ll happily settle for a kiss on my ass.

And Monica, if your lips are pledged to the bottom of another, how about we work through your errors, and my insufferable attitude, with a podcast debate?  Seriously, I’ll set it up, and we’ll both get copies….

Posted by Big Governement
February 23, 2010
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More On My Public Sector Fat Cat Obsession

Okay, I will admit that I am obsessed with this one particular truth:  The stimulus bill and all the stops that the federal government pulled to save the economy and create jobs didn’t not help the private sector employees. On the other hand, it did show support for its own employees.

Encouraged by Reason Magazine’s founder Manny Klausner, I made this chart this morning based on Bureau of Labor Statistics data that shows the change in employment in the private and the public sectors during the last two years.

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Warning: the number of public employees is on the right hand-side of the chart and the private employees are on the left.

Warning 2: This chart is not claiming that public employment was ever higher than private employment.

However, it is showing without a doubt that during the last two year the number of public employees has increased from 22.3 million in January 2008 to 22.4 million in January 2010, after peaking at 22.6 million in July 2009.  Not that impressive you will say. Well, excuse me but it certainly beats being a private employee during that same period of time. The number of private jobs decreased from 115.5 million in January 2008 to 107 million. That’s a lose of 8.7 million jobs in the private sector while the public sector gained almost 100,000 jobs.

The data doesn’t lie my friend. Now, let’s me ask this question again: who are the big losers in this recession and who has ultimately benefited from the big government intervention in our economy?

Posted by Big Governement
February 23, 2010
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The Mount Vernon Statement, A Poor Man’s Manifesto… Very Poor

A group made up of some of the biggest names in contemporary conservatism got together a few days ago and crafted what they are calling the “Mount Vernon Statement,” a manifesto of sorts meant to give direction to today’s conservative movement. Put succinctly, it fails to fill the bill.

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Taken as a whole this statement is fine as a short history lesson. It explains pretty clearly what the founders had wrought when their basic work was done with the adoption of the U.S. Constitution. But as a statement of principles that might guide today’s discussion, I do not think the letter works.

Don’t get me wrong, I am not saying that this effort is harmful. In fact, I think every young person should read it for its explication of our historically conservative American principles. The problem is that this thing doesn’t seem to speak directly to what we are facing today like a statement that perhaps aims to become boilerplate should.

Some of those involved with the statement said that the 1960 “Sharon Statement” served as their inspiration. The Sharon Statement, intended to give some ideological umph to Goldwater conservatives, is an effort that works much better as a rallying cry to action. Sadly, the Mount Vernon Statement falls a little flat in this respect.

Historically I have two minor qualms about the newest effort. First of all its name doesn’t resonate. Yes, George Washington was the indispensable man of our early republic. Without him the warring factions facing off in political battle during our early republic just might have strangled this baby in its crib. But, as steadying a force as he was, Washington was not really the ideological or intellectual father of our nation. He was the father that kept the kids from beating each other up, the father we looked up to as a model of comportment, the man we looked to as the solid rock of the family, certainly, but he wasn’t the idea man. For that we looked to men like Alexander Hamilton, James Madison, Thomas Jefferson, and John Adams among many others.

So, naming this letter after George Washington’s estate seems a bit odd. Better that these folks should have met in Independence Hall, Philadelphia and called this the Philadelphia Statement, the Independence Statement, or some such thing. The words “Mount Vernon” are obviously meant to lend historical heft to the document but they just don’t succeed as a meaningful ideological association. In fact, it’s sort of hollow. Are we naming our bedrock ideological principles for the man that didn’t craft them? That seems a bit odd to me.

Secondly, I find fault with this paragraph (my bold):

The conservatism of the Declaration asserts self-evident truths based on the laws of nature and nature’s God. It defends life, liberty and the pursuit of happiness. It traces authority to the consent of the governed. It recognizes man’s self-interest but also his capacity for virtue.

The word “recognizes” is not the correct word to use for what the founders thought about the word “virtue.” They didn’t merely “recognize” virtue existed. They built their entire political edifice on the insistence that our political leaders practice virtue and that they base their every move on the need to be seen as civically virtuous. This is an idea about which few of our political leaders today have the slightest clue, not to mention that the public is generally ignorant of what the founders meant when they discussed public virtue. Sadly, this letter doesn’t help us regain a proper perspective on the founder’s idea of public virtue.

The Mount Vernon Statement missed an opportunity to better explain what virtue in government could mean as a rallying cry for today’s conservative movement.

The Mount Vernon Statement is a fine little history lesson but compared to the Sharon Statement, it just doesn’t seem to as immediately take on the issues that we face. Where is the discussion of the destruction of our educational system, where is the warning against our worst foreign threat, where is the assertion that our system of jurisprudence has been undermined? All these things are broadly implied by the Mount Vernon Statement, granted, but one wishes that today’s problems were more directly addressed.

While we don’t want a statement that names names or attacks specific policies directly — that would detract from the essential universality of such a statement of principles — still to my mind the Mount Vernon Statement is a bit too broad. I feel that we need something a tad more direct. The Sharon Statement was perfect for its mixture of what were then current issues and timeless conservatives principles.

Should you have signed onto the Mount Vernon Statement, or should you feel that you’d like to do so, I can find no harsh words for you. As I said, there is no great harm done by this effort. Unfortunately, there is also correspondingly little succor that this effort can lend to our cause. It seems like a nice history lesson but as a manifesto to rally around it is more like a staid assertion than a battle cry. It is eminently forgettable.

Part Two

Yes, it’s easy to criticize. Surely it will occur to the minds of many readers of my criticism here that I should offer solutions along with my criticisms. So I offer the following basic idea of what I’d consider a better “statement” than what resulted from the efforts at Mount Vernon, Virginia. I’ll call it the “Huston Statement” for lack of a better title and since, well, I’m the one writing the thing.

Remembering that I am one man, not a committee of 80 some high-powered conservative operatives, here are the ideas I thought of while reading the Mount Vernon Statement, humbly offered as a basis upon which to further the discussion:

The Huston Statement

Since our political climate has long since drifted from the first principles of our founding and since we now face a crisis threatening to tear down our American moral center we commit ourselves to re-establishing our American character.

We believe that our Constitution and the principles espoused in the Declaration of Independence form the best guide by which to nurture our American character and provides a firm bedrock upon which to build a government.

We as Americans believe:

That as individuals we have the right of self-determination, to be free of overweening involvement in our lives by government at all levels from local, to state, to federal.

That as free men we must strongly assert that we are responsible for ourselves, our family, and our property and that others owe us nothing but to observe our rights as we observe theirs.

That our liberties depend on our civic virtue and that it is up to each of us to become informed citizens.

With these God-given liberties in mind, that our representatives must strive to keep government out of the lives of the people to the greatest extent practicable and that they should honor the principles of limited government as handed down to us from our founders.

And we assert that adherence to these principles will act as a beacon of freedom to the world, that we should actively promote them abroad giving succor to all those that would follow in our footsteps, and that we should not lend legitimacy to foreign bodies or nations that retreat from them.

We affirm that:

Private property is sacrosanct

The market-based economy free of government meddling must be preserved

Employees must be free of compulsory associations

Governments must be accountable to the voters not to judges and unions

Communities have the right to draft standards without federal approval

Education is a local responsibility solely under local and state control

It is freedom of religion, not freedom from religion

And that our Second Amendment rights are God-given and cannot be infringed

Additionally, we as Americans also reaffirm that legislation is the rightful duty of our constituted bodies of representatives and not the venue of capricious judges. Ruling from the bench is no better than the ill-considered tyrannies from the throne from which we so long ago rebelled.

Finally, let us understand these principles to be an affirmation of our American character one that has made our nation the richest and strongest nation in human history. Any force, whether domestic or foreign, that wishes to materially alter this character is an enemy to our nation and one that should not be treated lightly but faced squarely and with resolution.

Well, this is how I see a statement of principles that are geared to today’s issues but are still the sort that attest to our timeless conservative ideals.

I hope this can serve to continue the discussion that the Mount Vernon Statement started.

Posted by Big Governement
February 22, 2010
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Scott Brown Joins Democrats to Support ‘Jobs’ Bill

From the Associated Press:

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A bipartisan jobs bill cleared a GOP filibuster on Monday with critical momentum provided by the Senate’s newest Republican, Scott Brown of Massachusetts.

The 62-30 tally to advance the measure to a final vote on Wednesday gives both President Barack Obama and Capitol Hill Democrats a much-needed victory—even though the measure in question is likely to have only a modest boost on hiring.

Brown and four other Republicans broke with GOP leaders to advance the measure. Most other Republicans voted in favor of the filibuster because of strong-arm tactics by Democratic Majority Leader Harry Reid of Nevada. The bill is likely to enjoy far broader GOP support on Wednesday when it’s put to an up-or-down vote.

The bill featured four provisions that enjoyed sweeping bipartisan support, including a measure exempting businesses hiring the unemployed from Social Security payroll taxes through December and giving them another $1,000 credit if new workers stay on the job a full year.

Read the whole article here.

Posted by Big Governement
February 22, 2010
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But Is Our Republicans Learning?

Economist John Tamny has a piece in Forbes, “The Paradox Of A ‘Giving’ Government”, detailing the new, stepped-up emphasis by business on getting cozy with Washington, and how and why it pays off. In it is a very disturbing example of why we should expect at best weak and highly dispiriting pushback from Republicans when Obama finally gets around to following through on his telegraphed Plan B for the “global warming” agenda, “green jobs”.

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“Rep. Paul Ryan, R-Wis., presently a darling among Republicans for his pro-growth policies, has long made known his dislike of the 2009 Obama stimulus plan as a ‘wasteful spending spree.’ Nice rhetoric for sure–and as it turns out not very pure. In October 2009 the congressman wrote a letter to Labor Secretary Hilda Solis in favor of a grant application in his district, which, according to Ryan, would ‘place 1,000 workers in green jobs.’”

That’s pretty stomach-turning, when you consider the source. The government can give us nothing that it has not taken from us. The government cannot give your favored constituencies anything it has not taken away from others. The politics of envy have never been as strong in the United States as in Europe – which fact has given us a chance over the decades, but it appears to be a dwindling chance.

And no one who attended any appreciable part of CPAC this past weekend has any time for the philosophy that these are just the accommodations that one must make to stay here and do good work.

The public increasingly understand the scam that is that new “green jobs” line of argument, and in short green jobs mean pink slips, but not before an awful lot of your money goes to create far more Indian, Chinese and other jobs for every generally temporary gig they set up here.

We also now know there should be tempered optimism about whether Republicans really are ready to lead, that is, whether they are any different than the mess that got tossed out a few short years ago. When your leading thinkers and principled-types can’t resist and/or don’t get the truth about this, they are in trouble. And that’s bad news for the rest of us.

Tea, anyone?

Posted by Big Governement
February 22, 2010
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Needed: An English-Democratic Party Dictionary?

This past week in Washington, DC has seen the GOP actively engaged in discussions and strategizing about taking back the House of Representatives and taking back the Senate.  But before the GOP, Tea Party, or anyone else, can take back the House or Senate, they will face a more difficult and important battle–taking back our language.

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Democrats have made an art form of mis-speak, consistently showing only a passing familiarity with good, old Merriam-Webster.  Think Kafka and Orwell, where words are elastic, and plain-speaking is all but abandoned.

Understanding what President Obama, Nancy Pelosi and Harry Reid are saying is difficult; for, though the language may seem to be English, in reality, they speak a different language, the language of the Democrats in DC.  To understand exactly what they are saying, Americans need an “English –Democratic Party Dictionary.   Here is a sampler of some of the most important words and phrases that cause confusion:

  • INVESTMENT: President Obama and Speaker Pelosi frequently talk about the need for “investments”. For example, ” President Obama recently identified a need to invest in American infrastructure (and education)  What Mr. Obama and Nancy Pelosi really seem to mean when they talk about “investments” is that government needs to spend more.  Democrats  have learned from extensive polling that disguising calls for more government spending, and even greater national debt, are more palatable (to those that have not yet figured out the scam) if,  they talk about spending as  “investments”.  As most Americans know, making an investment  implies a return worthy of the risk.  Investors always want their money back and a profit to boot.  Fat chance of that!  According to the Democrat-version, “investments” are just spending by another name.  There will never be a return, and taxpayers putting their money are risk will never get their funds back, nor is there any chance of a decent return.

  • WORKING MAN: A favorite chestnut of Democrats, which really means Union Worker.   Lots of Democrats talk about being the Party of “the working man”, but what they are really saying is that we need to support Unions and Organized Labor.  Other Americans, that actually work very hard in a thousand different industries,  and especially entrepreneurs, and small  business owners, are not ever considered to be “working men or women”.  Sure they might work 90+ hours a week, to build their business, but that matters not at all.   Democrats support, and honor, only the unionized employee as a “working man or woman.   All other, hard working, Americans are an afterthought, and none merit much attention beyond how much more their taxes should be raised.
  • ENTITLEMENTS v. RIGHTS: When Democrats speak of “rights” most people mistakenly assume that they are talking about constitutional rights, that are specifically enumerated in the Constitution, But, that is a big mistake, for Democrats, and Progressives, have so misused and bastardized the “rights” to portray their expansive vision of government ,and the many false promises of something for nothing.  For example, “it’s my right to have cheap healthcare.”  Nowhere in the Constitution or the Bill of Rights is healthcare identified as a “right“, nor is the concept even discussed.  Progressives also point out that, “it’s every American’s right to have a decent standard of living.”  Wrong again.  What Americans have been promised in our Constitution  is an equal  opportunity to pursue their own dreams and pursue happiness free of excessive government control .   Similarly, it is important to remember that Entitlement programs are not “rights” either.
  • JOB CREATION: Democrats in government  talk a lot about job creation and the urgent need for government to create more jobs. But, government does not create any jobs in the private sector, and the only jobs it does create are government jobs, that can only be funded and supported by additional taxes on those that do create jobs.
  • SHOVEL READY: Remember this one?  “Shovel Ready” projects were supposed to result in the immediate launch of any number of new construction projects, creating jobs across the country.  But that was a myth; very few “shovel ready” projects ever existed.  Instead, the vast majority of new construction projects were tied up in nightmarish, regulatory processes;  scoring rules, prospectuses, approvals, assessments, FONSIs (Finding of No Significant Impact) and Permitting, are just a few of the obstacles that must be overcome before a project is “shovel ready.” Had President Obama really wanted to push infrastructure projects, he could have eliminated or reduced any or all of the many different  bureaucratic hurdles that a building project must navigate.  Instead, the President merely called for more money to be placed into the maw of a process that grinds too slowly and at great expense to taxpayers. There are all sorts of infrastructure projects that could be made “Shovel Ready”, but that would require  dedicated leadership willing, and able, to curtail excessive bureaucratic reviews and focus more on the actual building of new infrastructure, versus a timid, rote adherence to an unsuccessful process that does not serve the nation.
  • CRITICAL INFRASTRUCTURE: Critical infrastructure  should be restricted to a very narrow definition– roads, bridges and buildings essential to continued or increased commerce of the nation.  But Dems in Congress have, in the Stimulus, expanded the definition to include water parks and studies of the Harvest Marsh Mouse.  According to this view, building new tennis courts, water parks, and stadium parking lots, (especially if they are targeted into their own districts) are all now labeled as “critical infrastructure”.  What Dems in Congress cannot, and will not, ever do is to actually prioritize the nation’s needs, and have the courage and leadership to decide which projects would provide the greatest benefit to the nation as a whole.  Instead, a “critical infrastructure” is defined as any building project, or any spending plan, that will bring federal funds to their home districts.
  • SPENDING CUTS / CUT TO THE BONE: Washington is always talking about “cutting to the bone”, but that is a fiction.  There is so much blubber in the budget that it’s been many a decade since Americans saw the “bones.”  When Dems use the term SPENDING Cuts — as in “we must reduce federal spending”, what is really meant is: let’s cut the amount of the increase to the budget line item.  Memo to Congress:  cutting an increase is not a budget cut.

Our country used to be one where a man, or woman, was bound by their word, and their word was their bond in  public and private transactions.  We are so long gone past that because, now, in the 111th Congress, words only means whatever the speaker wants them to mean.  Before we can solve a problem, we need to acknowledge the problem openly and with candor.  When we lose our language, we lose the power to change by civil discourse.  And, that bodes ill for all Americans.

Posted by Big Governement
February 19, 2010
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Do We Need a National Commission on Fiscal Responsibility and Reform?

The President’s National Commission on Fiscal Responsibility and Reform is what everyone really knows it is—a bipartisan group of former and current political elites that will listen to hours of testimony by a select group of witnesses in order to create a report that will justify a tax increase for which there does not exist political support. The fact that the commission is being created by Executive Order rather than by congressional action tells us what the expected conclusion of the commission will be.

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We do not need another commission to know that decades of programs that tax those who work in order to provide benefits to those who are in political favor has led to the point where the promises made to millions of Americans cannot possibly be met. To quote from the Social Security and Medicare Board of Trustees 2009 Annual Report: “Projected long run program costs are not sustainable under current program parameters.” This is government-speak for: “the jig is up.” The Social Security cash flow will be negative by 2016, at which time the baby-boomers will start to retire and things go south ever faster.

To again quote from the report: “Medicare’s financial status is much worse…Medicare already runs cash flow deficits…For the third consecutive year, a ‘Medicare funding warning’ is being triggered, signaling that non-dedicated sources of revenues—primarily general revenues—will soon account for more than 45 percent of Medicare’s outlays. A Presidential proposal will be needed in response to the latest warning.” We don’t need a bipartisan commission to tell us what the problem is. Social Security and Medicare have total unfunded liabilities in excess of $100 trillion. We need Presidential leadership that will address the spending problems that are the result of a government that has been shorn of the limitations of the 10th amendment.

Our budget crisis is a crisis of responsibility and a government that no longer is bound by enumerated powers. Friedrich Hayek wrote that a free society probably demands more than any other that people be guided in their action by a sense of responsibility. Rather than letting the system of markets and family satisfy our retirement and health care needs, we have instead created a government retirement program and two government health insurance companies that make up an annual expenditure of $1.5 trillion out of the projected $3.7 trillion 2011 budget. Adding on another $250 billion for net interest on the national debt, and we know what the problem is.

Raising taxes to sustain government transfer programs is not going to solve our budget crisis. Indeed, this is how we got into the problem in the first place. In 1850, Bastiat wrote in The Law that a just government is based upon our natural right to self-defense. An unjust law is one which violates this natural right, by taking the property of one person to give to another. He also argued that once a government engages in what he termed “legalized plunder” several things will happen, one of which is that people will fail to recognize an unjust law when they see it. The government will become, in his words, “that great fiction by everyone tries to live at the expense of everyone else.” We have arrived at that time.

We do not need a National Commission on Fiscal Responsibility and Reform. We need to return to those principles of liberty and responsibility that have resulted in the wealth and social cooperation that we still enjoy. This will include electing representatives that will admit that it is not possible for Americans to retire at the age of 62 with a government pension or to have a government insurance company pay for their medical expenses. We must make the transition to individual retirement savings and a market-based insurance system. This will take strong leadership from our elected officials, not the formation of a commission designed to distract us from the impending difficulties caused by our attempt to use an unbounded government to make us all secure.
National Commission on Fiscal Responsibility and Reform

Posted by Big Governement
February 18, 2010
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Obama, The Director

Several weeks after the Senate rejected Barack Obama’s plan to create a bipartisan congressional panel charged with decreasing the deficit, the president will use his executive authority to create the National Commission on Fiscal Responsibility and Reform.

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The less-powerful bipartisan commission, chaired by Erskine Bowles and Alan Simpson, will be tasked with formulating a plan to decrease the federal budget deficit to 3% of GDP by 2015.

Yawn.

With the signing of this executive order, Obama will add fiscal responsibility to his growing library of political theater. Thus far, his other featured films have starred earmarks, lobbyists, Sonia Sotomayor, bipartisanship, etc. Unsurprisingly, they all share a common theme: disingenuousness. You’re welcome to grab some popcorn and take a seat, but as you watch the production of fiscal responsibility featuring Obama the deficit hawk, keep in mind you’re only being entertained.

In his first year in office, the president spent a record-breaking $3.52 trillion. At the end of the year, he used Christmas Eve to sneakily sign an executive order that provides an unlimited, perpetual bailout to Fannie Mae and Freddie Mac.

At the beginning of this month, he released a $3.8 trillion budget proposal that will increase the deficit to a record-breaking $1.56 trillion, and just last week he signed a bill that increases the federal debt limit from $12.394 trillion to $14.294 trillion.

The president’s track record speaks for itself. He’s not a deficit hawk; he’s a big government ideologue. Unfortunately, big government costs big money, and the formation of Obama’s America will cost unprecedented amounts of money–to use the administration’s favorite word.

So what’s going on here?

As usual, Barack Obama believes he’s the smartest guy in the room, and he can trick the American people because they only pay attention to his words, not his actions.

That’s why he makes a pledge of no lobbyists, but allows waivers to sneak them in the back door. That’s why he makes a pledge of no earmarks, but signs unread legislation filled with thousands of them into law. That’s why he talks about bipartisanship, but behind closed doors proclaims to the GOP, he won, they lost, and they can either go along or get out of the way. And that’s why he creates a commission designed to create the appearance of a president who wants to get the nation’s financial house of cards in order even while he plots to spend it into oblivion.

Films often capture our imaginations, allowing us to believe in the unbelievable. Obama wants us to believe the unbelievable in him, but according to a recent CNN poll, 52% of the participants don’t believe he should be re-elected.

Translation?

The American people don’t believe he’s doing a great job directing, and they’re going to be the ones to say “cut!”

Posted by Big Governement
February 17, 2010
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Job-Sniffing GOP Bloodhound Ellie Mae is Still on the Jobs Hunt

Last summer, I released a web video targeting Washington Democrats’ trillion-dollar “stimulus” bill and asking “where are the jobs?”  Today, on the one-year anniversary of President Obama signing the “stimulus” into law, job-sniffing GOP bloodhound Ellie Mae still hasn’t found any jobs “created or saved” by the “stimulus.”  And I’m re-releasing the video for an encore performance.

The video features a down-home voiceover by Rep. Lynn Westmoreland (R-GA), and concludes with an appearance by me and Ellie Mae herself.

When Democrats rushed their massive 1,100 page, “stimulus” through Congress last year, they promised that unemployment would not rise above eight percent and that job creation would begin “almost immediately”.   But one year later, more than three million more Americans have lost their jobs, the deficit is set to hit a record shattering $1.6 trillion, and Administration reports on how many jobs were “saved or created” have been “riddled with inaccuracies and contradictions.”

By the metrics the Democrats themselves set, the “stimulus” hasn’t worked – it’s chock-full of wasteful government spending that’s funneled money to Congressional districts that don’t exist and claims of jobs “saved or created” were so exaggerated that the Administration quietly abandoned the metric at the end of last year.

Poll after poll confirms that an overwhelming majority of Americans oppose the “stimulus” program.  In fact, a CBS/New York Times poll released yesterday found that “just 6 percent of Americans think it has created jobs.”   Any wonder that a CNN survey reported that “3 of 4 Americans say much of stimulus money wasted.”

All Washington Democrats have to offer struggling families asking “where are the jobs?” is more spending, more debt, and more broken promises.  Republicans are offering better solutions to:

For a look back at the Democrats’ broken “stimulus” promises, please see a new report released today entitled “Where are the Jobs?: A Look Back at One Year of So-Called ‘Stimulus’” outlining the failure of the Democrats’ trillion-dollar “stimulus” to create the jobs they promised while leaving massive deficits in its wake.

Posted by Big Governement
February 17, 2010
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Happy Stimulus Day! One Year’s Worth of Waste

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No man’s life, liberty, or property are safe while the legislature is in session.

– Mark Twain

The Obama peeps are actually trying to celebrate the one year anniversary of the $862 billion “drive us into perpetual debt” bill. Biden repeatedly told an audience in Saginaw, MI -unemployment 14% – that the “stimulus” is working.

Thanks, Joe! Hey, maybe that’s the next great achievement of The One. Back in the real world people are finally starting to notice that all this debt we’re racking up could lead to inflation, kill your savings and wages, and make it harder for you and businesses to borrow money.

Over the past year alone, the amount the U.S. government owes its lenders has grown to more than half the country’s entire economic output, or gross domestic product.

Even more alarming, experts say, is that those figures will climb to an unprecedented 200 percent of GDP by 2038 without a dramatic shift in course.

“Within 12 years&the largest item in the federal budget will be interest payments on the national debt,” said former U.S. Comptroller General David Walker. “[They are] payments for which we get nothing.”

There’s no getting around the fact that eventually we have to pay this back and the interest payments are killing us.

“I place economy among the first and most important virtues, and public debt as the greatest of dangers. To preserve our independence, we must not let our rulers load us with perpetual debt.”

– Thomas Jefferson, 1743-1826

Okay, debt can be bad, but look at all the good the “stimulus” has done! It’s kept states from cutting their budgets and throwing teachers, firemen and policemen out of work. Does anyone really believe states would have decided THAT was the answer? There are other ways to cut state budgets. We are simply delaying the inevitable and not fixing the problem of outrageous spending. State spending went nuts in the boom years and they need to right their ships now.

We’re also learning more about where the “stimulus” money went.

More than $3.5 billion in economic stimulus funds are going to programs that President Obama wants to eliminate or trim in his new budget.

But wait, there’s more:

“We’ve gone through records that said they spent money on lion and tiger dens at the National Zoo in D.C., stopped modified funding for fish sperm, resetting headstones at cemeteries, cleaning bird droppings,” said Grabell.

The country needs an intervention. We are addicted to spending and the idea that the federal government’s role is to solve all our problems. Until we admit that, we won’t change it. We must get back to the idea of a limited government, lower taxes, less spending, more personal responsibility and voluntarily helping each other instead of stealing from one to redistribute to another.

Families cannot prosper and keep America strong if government becomes a Goliath that preys upon their wealth, usurps their rights, and crushes their spirit.

–Ronald Reagan

On a lighter note, here’s the latest episode of my web show taking a humorous look at the week in politics. Enjoy!

Posted by Big Governement
February 15, 2010
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Our Time for Choosing

You and I have a rendezvous with destiny.  We’ll preserve for our children this, the last best hope of man on earth, or we’ll sentence them to take the last step into a thousand years of darkness.

Ronald Reagan spoke these words some forty-six years ago in his famous “A Time for Choosing” speech.  Tragically, today in America it appears the time for choosing is fast passing. As each day goes by our debt grows more untenable; our security more imperiled; our economy more shackled; our government more tyrannical.

These are symptoms of an America that has chosen the wrong path.  We lost our way on the road to civilization, veering onto the road to serfdom. Our plight is the result of a hundred-plus year campaign by the socialist sophists to slowly but surely undermine the bedrock principles on which we had built our strength.

While the ends of a nation are peace, prosperity and culture, from our founding there was a dichotomy of opinion as to how best to achieve these ends.  It was not merely a matter of state versus federal or small versus big government.  Rather, at its core the split rested and continues to rest upon embracing liberty or embracing tyranny.

As the underappreciated French Political Economist Frédéric Bastiat argued, “The state is the great fictitious entity by which everyone seeks to live at the expense of everyone else.” James Madison in an equally cynical but less damning statement asserted,

If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself.

Put another way, the great challenge of government is that while in forming it we grant man privileges to protect our natural rights, it proves difficult enough for man to govern himself let alone others. Thus, in devising a governmental system, our founders set up a Constitution of diffuse powers confined to explicit spheres.  This was to ensure that the majority of power rested with the states or the people.

As our country aged, the state increasingly stripped us of our rights instead of securing them. Government grew whilst the individual shrunk. Whereas the law was meant to protect against the diminution of man, instead it was used as an instrument to plunder him. As Bastiat shrewdly posited in The Law back in 1848,

..legal plunder can be committed in an infinite number of ways. Thus we have an infinite number of plans for organizing it: tariffs, protection, benefits, subsidies, encouragements, progressive taxation, public schools, guaranteed jobs, guaranteed profits, minimum wages, a right to relief, a right to the tools of labor, free credit, and so on, and so on. All these plans as a whole — with their common aim of legal plunder — constitute socialism.

If only this message had resonated.

We lovers of liberty allowed for the planting of these seeds of our destruction. We have always had the better ideas, but too often failed to adequately defend them. Our ideological counterparts, realizing that they could not win on substance propagandized through academia and the media, and co-opted the poorest and the richest in their lust to undermine our rights for their personal gain.

Anecdotally, we can see a clear difference in the logical ends of the policies the statists espouse.  It is instructive to look at the experience of those in East and West Germany before the fall of the Berlin Wall (well-documented on pages 33-37 here).  Similarly, if we compare and contrast the liberal urban areas in America with the more conservative suburban ones, in many instances we see a clear difference in wealth, safety and overall quality of life, which is incidentally ironic given that it is often the suburban areas that subsidize their urban neighbors.  Yet even with this stark difference in results, somehow we have succumbed to the path to barbarism.

Perhaps one of the reasons for our loss in the war of ideas is that while the battle lines are clear, we have not sufficiently articulated the virtues of our side. The following questions are exemplary of our divide, and were Americans to consider their implications in context of our political system, I believe support for the left would wither. Do Americans believe in private self-reliance or public largess? Do we believe in meritocracy or thugocracy? Do we reward success or failure? Do we stand upright or bow to the world? Do we wish to return America to fiscal order, or condemn future generations to debt slavery? Do we believe that solutions come through the ingenuity and toil of the American people, or from faceless bureaucrats in Washington? Do we wish to be the shining beacon of civilization, or a mere footnote in a history book?  Do we believe in the individual, innovation, morality and the spontaneous and organic harmony of freedom or the collective, backward, perverted morality and destitution of centrally planned servitude?

The people of this nation know that the progress of man has always come from the individual, free to question, experiment and fail. In fact, it is often out of failure that opportunity arises. Our nation was built on principles the founders gleaned from their studies of the failures of their predecessors. They understood that powerful centralized government could never advance man, but only restrain him.  They understood that the sole purpose of government was to protect man from the tyranny of others and that of government itself.  This was to be achieved by building a foundation based on property rights and the rule of law, a foundation that would allow man to flourish.  Sadly, generation after generation, we have allowed our government to usurp more and more of our freedom — to steal from us the life, liberty and property that make us people.  In our quiescence, we have given politicians sanction to weaken our constitution and dehumanize us.

But just as failures created the conditions for the founders to build this nation, so too have failures created an opportunity for us to refound it.  Today we have a populace galvanized against our largely corrupt stewards. We must avail ourselves of this opportunity to educate a captive audience on history, on principles and on the ideals that we have allowed to grow decadent. In the meantime in trying to roll back years of ideological subversion that have numbed Americans to truth and morality, we must elect officials who will stop government from expanding.  Then, we must go to work in stripping it back to the bare bones ascribed to it in our Constitution.

In order to achieve this monumental task, we will need to seek out candidates who are unafraid of the censorship that is political correctness; who understand that the state is always to be subservient to the individual; who are willing to abide by principle even if it means political pain.  In other words, we will have to find patriots who stand to gain little from serving in government, the very people who have traditionally avoided serving in it.

This battle will take many, many years, and there is no guarantee of success.  But difficult as the struggle may be, appeasement and the middle path will surely lead to failure.  Reagan understood this when it came to the Cold War.  He argued,

every lesson of history tells us that the greater risk lies in appeasement, and this is the specter our well-meaning liberal friends refuse to face—that their policy of accommodation is appeasement, and it gives no choice between peace and war, only between fight or surrender. If we continue to accommodate, continue to back and retreat, eventually we have to face the final demand—the ultimatum.

Reagan further noted as to a policy of appeasement that, “You and I know and do not believe that life is so dear and peace so sweet as to be purchased at the price of chains and slavery.”  One might add that chains and slavery will never lead to a dear life or sweet peace.

We must fight another war against our ostensibly well-meaning liberal friends, a war on ideological grounds in the political arena.  We must express to all those who cherish this country that nothing less than our existence rests upon our fight against the tyranny of our democracy.  Our state is a Leviathan, hurtling towards fiscal and moral bankruptcy and war.  History will either remember us as the generation that twiddled our fingers while Rome burned, or the underdogs who overcame great evil to return this nation to its rightful place as a shining city on a hill.

We may lie very close to the precipice today, but it is still our duty to make the proper choice.  We must choose to fight the fight for civilization or risk dishonoring our founders, enslaving our children and debauching our once great nation.  If we choose rightly, we will either save our country from impending collapse or build a contingent strong enough to rise from its ashes. In a world being terrorized by the twin tentacles of socialism and Islamism, we still remain the last best hope of man on Earth.

Posted by Big Governement
February 14, 2010
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Obama’s Financial Hope and Change: Free Money for Wall Street

A recent Pew survey revealed the nation’s big banks are drawing the most ire from the American public, and now that the Federal Reserve is poised to hand them another victory, it’s easy to see why Main Street’s anger burns deep.

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Wednesday, Federal Reserve Chairman Ben Bernanke released a statement to the House Committee on Financial Services which detailed the accommodative policy the Fed implemented as a result of the Great Recession and outlined its exit strategy from that policy.

The objective of the Fed’s intervention was to alleviate the pressure on the balance sheets of the banks, which would provide them with the financial flexibility necessary to begin lending to consumers and businesses once again. To meet such an end, the Fed increased the size of its balance sheet through purchases of securities and real-estate loans from the banks, and decreased the interest-rate for interbank lending to nearly zero percent.

The banks’ first ‘Win’ came as a result of those sales to the Fed which produced billions of dollars in revenue. Afterwards, many of us were wondering why the banks weren’t lending again, despite raking in record profits, but the answer was simple. They quickly realized they had found themselves with a can’t lose proposition, as they could make guaranteed money instead of taking on more risk from lending to consumers and businesses during a period of economic uncertainty.

How could they do that?

They made the federal government their primary customer and charged them a higher interest rate than the artificially low rate the Fed had set as their cost to borrow. Additionally, they parked more than the federally mandated amount of reserve funds at the Fed, and received interest on those excess amounts.

The banks’ second ‘Win’ will come as a result of Bernanke’s proposed exit strategy, which calls for an increase on the interest rate the banks receive on the aforementioned excess reserves.

Why would the Fed want to do that?

Bernanke has to encourage the banks to keep their money parked at the Fed as opposed to filtering it into the economy through lending to prevent an increase to the money supply that would cause inflation.

So what will the banks do?

They’ll keep raking in the cash.

Their primary customer is poised to spend even more money, and they’ll be right there to lend it to them. Per their standard procedure, they’ll charge them a higher interest rate than their cost to borrow, and because of Bernanke’s incentive, they’ll keep even more money in the Fed’s coffers; the profit-making cycle repeats itself.

The government and Federal Reserve have forged a collective effort to stabilize and stimulate the economy, and in the process, they’ve unintentionally rewarded the banks for not engaging in their principal business and now the Fed is forced to financially incentivize them to continue to not lend to prevent another economic catastrophe.

While Main Street continues to be mired in a long losing streak, the banks remain undefeated at the expense of taxpayers; don’t expect those results from the Pew Survey to change anytime soon.

Posted by Big Governement
February 12, 2010
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Repeat After Me: Tax Credit for Employers is a Dumb Idea When These Guys Have No Customers

The definition of insanity is to keep doing the same thing over and over again and expect different outcomes.  The different versions of the jobs bills circulating in Washington DC these days are perfect example of that point.

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See for instance, the  jobs tax credit for hiring new workers idea. What a brilliant example of bipartisan nonsense that is. Pushed by President Obama during his State of the Union address earlier this month and most recently picked up by Senators Schumer and Hatch.

Still no one seems to wonder, why would employers pay a new worker $40,000 to earn a $5,000 credit unless that worker generates at least $35,000 of revenue? Even when the advice comes from economists at the National Federation of Independent Businesses, the largest association of small business owners in the country, it is ignored by the President and Congress.

This about it this way:

If your business is slow, and your customers are not buying your goods and services, it is likely that your tax liability will be significantly reduced or nonexistent even.  No tax liability, no need for a tax credit. Better yet, no customers, no need for employees, tax credit or not. (Duh)

Of course the same can be said about Obama’s proposal to use $30 billion of the repaid TARP money to prop up small business lending. There will be no demand for loans as long as the economy is doing poorly and customers are not buying goods and services produced by small businesses.

If Obama wants to help small businesses he should stop pretending to give with one hand while stealing big time from the other hand. What do I mean? Well, he gives useless tax credits on the one hand but is proposing big tax increases for those earning more than $250,000 a year on the other, including all the small business owners that report their business income as individual income. These guys aren’t going to take loans and invest in their businesses and hire new employees if they are going to be hammered with tax the following year.

Posted by Big Governement
February 12, 2010
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My Country ‘Tis of Thee, Sweet Land of Dependency

If you want to get depressed or angry, the New York Times has an article celebrating the effort by politicians at all levels of government to lure more people into the food stamp program. New York City is running ads in foreign languagues asking people to stick their snouts in the public trough. The City is even signing up prisoners when they get out of jail. The state of New York, meanwhile, actually set up quotas for enrolling new recipients. And on the federal level, there apparently is a program that gives states “bonuses” for putting more people on the dole. No wonder one out of every eight Americans is receiving food stamps.

food-stamps

By the way, this is not just the fault of Democrats. The ranking Republican on the Agriculture Committee is a big defender of the program, in part because of the sordid pact among urban and rural politicians to support each other’s handouts. And President George W. Bush’s food stamp administrator actually had the gall to assert “food stamps is not welfare.” No wonder the burden of federal spending skyrocketed during the reign of so-called compassionate conservatism.

The correct policy, of course, is to get the federal government out of the welfare business. If Mayor Bloomberg thinks it is a “civic duty” to expand food stamps, he should see whether New York City voters agree with him – and want to foot the bill.

A decade ago, New York City officials were so reluctant to give out food stamps, they made people register one day and return the next just to get an application. The welfare commissioner said the program caused dependency and the poor were “better off” without it. Now the city urges the needy to seek aid (in languages from Albanian to Yiddish). Neighborhood groups recruit clients at churches and grocery stores, with materials that all but proclaim a civic duty to apply — to “help New York farmers, grocers, and businesses.”

There is even a program on Rikers Island to enroll inmates leaving the jail. “Applying for food stamps is easier than ever,” city posters say. …These changes, combined with soaring unemployment, have pushed enrollment to record highs, with one in eight Americans now getting aid. “I’ve seen a remarkable shift,” said Senator Richard G. Lugar, an Indiana Republican and prominent food stamp supporter. “People now see that it’s necessary to have a strong food stamp program.” …The program has commercial allies, in farmers and grocery stores, and it got an unexpected boost from President George W. Bush, whose food stamp administrator, Eric Bost, proved an ardent supporter. “I assure you, food stamps is not welfare,” Mr. Bost said in a recent interview. Still, some critics see it as welfare in disguise and advocate more restraints. …The federal government now gives bonuses to states that enroll the most eligible people.

…In 2008, the program got an upbeat new name: the Supplemental Nutrition Assistance Program — SNAP.

…Since Mayor Michael R. Bloomberg took office eight years ago, the rolls have doubled, to 1.6 million people…

Albany made a parallel push to enroll the working poor, setting an explicit goal for caseload growth. “This is all federal money — it drives dollars to local economies,” said Russell Sykes, a senior program official. But Mr. Turner, now a consultant in Milwaukee, warns that the aid encourages the poor to work less and therefore remain in need. “It’s going to be very difficult with large swaths of the lower middle class tasting the fruits of dependency to be weaned from this,” he said.

Posted by Big Governement
February 9, 2010
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Pork Report, February 9, 2010: Neon Edition

More than three-quarters of the $2 billion in federal stimulus funds intended to create green-energy jobs in the U.S. has gone to foreign-owned companies

Despite millions in federal tax credits, wind-equipment manufacturers cut thousands of jobs in the U.S. last year

Las Vegas receives $4.5 million federal grant to build the neon museum

Alaska Senators fight to restore funding for earmark that both President Bush and Obama have tried to eliminate

New Jersey Senator prodded the Federal Reserve to aid a struggling bank whose chairman and vice chairman were big campaign contributors

Media critics agree the U.S. Census Bureau’s $2.5 million Super Bowl ad was one of the worst

$501,940 of federal stimulus aid will help finance an animal shelter, which will include pet bathing areas and a kitten nursery

Only 11% of Americans think the government spends taxpayers’ money wisely and 83% say the size of the federal budget deficit is due to the unwillingness of politicians to cut government spending

75% of voters are angry at the government’s current policies; 59% believe cutting taxes is better than increasing government spending for job-creation, but 72% expect Washington politicians to increase spending instead

Posted by Big Governement
February 8, 2010
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Political Alchemy, Part I: Turning Spending Increases into Tax Cuts

Politicians in Washington have come up with something far more impressive than turning lead into gold or water into wine. Using self-serving budget rules, they can increase the burden of government spending and say they are cutting taxes instead.

Mad_scientist

This bit of legerdemain is made possible, thanks to the convolutions of the personal income tax, by adopting or expanding refundable tax credits. But in this case, “refundable” does not mean the government is returning money to taxpayers. Instead, it means that money is being redistributed to people who do not earn enough to be subject to the income tax.

This is hardly a trivial issue. According to the Congressional Budget Office, the amount of income redistribution being laundered through the tax code is now so large that the bottom 40 percent of the population has a negative “effective” income tax rate. In simple terms (though perhaps with profound political implications), the income tax is a revenue generator for a big share of the population.

And the problem is going to get worse if the President’s budget is approved. Buried in the fine print, on pages 188-189 of the Analytical Perspective of the Budget, you will see that the President is proposing to increase this hidden form of spending by more than $152 billion over the next ten years.

It is worth noting that proponents argue that it is okay to classify this new spending as tax cuts because it somehow offsets other tax payments, especially the payroll tax. I’m sympathetic to lower taxes on everybody, including the poor, but surely it is better to be honest and simply cut the taxes that people pay. The current methodology, by contrast, is open to abuse. Heck, I’m surprised politicians don’t classify other forms of spending as tax cuts. Maybe corporate welfare can be reclassified as a corporate tax cut (I better stop lest I give the political class any ideas).

Defenders also assert that some so-called refundable tax credits, particularly the earned income tax credit, are designed to encourage work. That is partly true, but credits like the EITC are withdrawn as income climbs, and this means poor people face punitive marginal tax rates, so the overall effect on hours worked may be negligible.

The right approach, of course, is to get the federal government out of the racket of redistributing income. And without “refundable” tax credits, it would be easier to adopt real tax reform, such as a flat tax or national sales tax.

Posted by Big Governement
February 8, 2010
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Show ACORN the Money

From The American Spectator:

acorn

ACORN and other left-wing advocacy groups could be eligible for up to $3.99 billion in federal funding included in the $3.83 trillion fiscal 2011 budget blueprint that President Obama unveiled last week.

ACORN and other left-wing advocacy groups could be eligible for up to $3.99 billion in federal funding included in the $3.83 trillion fiscal 2011 budget blueprint that President Obama unveiled last week.

The $3.99 billion comes from a congressional slush fund known as the Community Development Block Grant (CDBG) program, which is part of the Department of Housing and Urban Development’s (HUD) $48.5 billion fiscal 2011 budget. CDBG grants, which are awarded to states and localities, pass indirectly to ACORN.

How is more funding of ACORN possible when Congress passed a ban on funding the group and its affiliates just last year?

Congress has already hinted it might vote to restore funding to ACORN. On Dec. 8 the House Appropriations Committee rejected on a party line vote of 9 to 5 an amendment offered by Rep. Tom Latham (R-Iowa) that would have blocked federal funding of ACORN.

And in December federal Judge Nina Gershon restored federal funding of ACORN by issuing a temporary injunction against the congressional funding ban. The Brooklyn-based Gershon, a Bill Clinton appointee, determined that depriving ACORN of taxpayer dollars was an unconstitutional “bill of attainder” that singled out ACORN for punishment without trial.

You might be familiar with Gershon’s oeuvre. In 1999 she ruled then-New York mayor Rudy Giuliani had no right to cut off city funding of the Brooklyn Museum of Art when it displayed dead animals and a painting of the Virgin Mary decorated with elephant dung.

Gershon’s order covered the federal government’s temporary spending legislation that expired Dec. 18 but ACORN is asking that the injunction be modified to cover the remainder of fiscal 2010, which ends Sept. 30. If the litigation drags on, ACORN will undoubtedly seek another modification to cover fiscal 2011.

Read the whole article here.

Posted by Big Governement
February 8, 2010
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A Formula for Real Economic Growth: Cut Public Employee Pay by 20%

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Slate’s Jacob Weisberg came unhinged on Friday and gave the country the finger.

“Down with the People!” he screams from Bill Gates lap.  As Jacob sees it, we the people are demanding two mutually exclusive things: premium government services and tax cuts, and when we can’t have what we want, we become unruly children.

There is of course a third option, and I think it is the voting issue for the 2010 elections.  It frankly amazes me that TPM-style Democrats going after Paul Ryan’s Roadmap, don’t see it coming…

You can thank me later, but I just saved the United State of America at least  $278,309,600,000.00 PER YEAR. You read that right.  $278 BILLION per year.  That’s almost entirely what Medicaid will spend this year for children and the disabled.  That’s what our normal deficit looks like without TARP and stimulus.

The crazy thing is how easy it was to do.   It took me like three minutes.  And since I’m a big open source, creative commons guy I’m even posting my magical formula shown here using 2008’s budget:

(1,391,548 1,000,000)*.2

Somebody start printing bumper stickers baby, so everyone can see how much we save when we cut federal, state, and local public employee pay by 20%.*

Amazing isn’t it?  And Obama, Weisberg, and SEIU are out of their friggin minds if they think 20% government pay cuts aren’t on the table come next November. What are they going to do?  Quit?  Strike?  Bring it on.  Newt’s 1994 revolution will look uneventful by comparison. We call them civil “servants,” for a reason.

We don’t need to be politically delicate about this,  we aren’t advocating a single program cut, no school closed, no park uncleaned, no fireman not coming to save you.  All of that will continue to happen.

But the government employees doing all this marvelous stuff for us are going to earn 20% less…. and from now on their future pay increases will be tied to private wage inflation.  Our country is in deep financial straits, and it is time for government workers to share our pain and get their interests aligned with ours.  They’ll make more money when we do.

Yes, there are further budget issues we face, entitlements must be humanely reigned in, but before we can seriously look at future debt projections, we must first return sanity to the public labor market.  Until we cut government pay down to size, we can’t honestly talk about which programs to fund…. because right now they all cost too much.

Republicans and Blue Dog Democrats should refuse to deal with any other issue, until this one is fixed.  They should make Senator Shelby’s 70 holds seem a trifle.  Want a jobs bill?  Let’s fix government pay, so main street can have a tax cut.  $278 BILLION as small business tax relief at the federal, state, and local level is one hell of a jobs program.  Real jobs.  The kind that don’t have the dirty taint of government on them.

China will LOVE us.  Wall Street will soar.  It will be serious proof Washington DC has been cracked to the core.  It will be morning in America.

I can’t imagine a single Indie voter not rushing to the voting booth on this one.  Politicians courting the tea party, listen up, this gets completely around the false choice the left wants the voters to have to make.  Instantly, the debate changes.

*of course, Josh Marshall, there will be no military cuts. Minus military wages, the Bureau of Economic Analysis places government compensation in 2008, at $1,391,548,000,000.00

Posted by Big Governement
February 8, 2010
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California’s Costly High-Speed Rail Hoax: Using Borrowed Money to Build a Flawed Train

California has the worst bond rating in the nation, hovering just above junk bond status.  A lower bond rating means higher interest rates when selling bonds – and California already spends $10 billion per year in bond principal and interest repayments.

In this, as in many other things, California leads the nation, for better or for worse (repaying the money borrowed for President Obama’s Stimulus will cost every American $280 a month for life).

Some people place a portion of California’s debt problem at the feet of voters who approve nearly every bond initiative, from $3 billion for an embryonic stem cell research bond to $10 billion in debt to build a high-speed rail system.

It’s hard to blame citizens of the Golden State for voting for debt when the most famous Californian, Governor Arnold Schwarzenegger, proclaims bonds “a gift from the future.”  It’s also hard to blame voters for approving bonds when the bond ballot descriptions and arguments are chock full of shaky claims.

Take November 2008’s much promoted High-Speed Rail Initiative, Proposition 1A.  Voters approved it by 52-48 after proponents, such as train manufacturers and unions poured $2.5 million into the effort.  As with almost every bond measure, there was no funded opposition.  The measure’s proponents, big business and labor unions, claimed that the trains would offer time-saving travel “AT A CHEAPER COST!” than air travel or car.  And that, the train would, “give Californians a real alternative to skyrocketing gasoline prices and dependence on foreign oil while reducing greenhouse gases. Building high-speed rail is cheaper than expanding highways and airports to meet California’s population growth.”

Really?  Who checks these claims?

A widely read California columnist recently noted that the cost estimates for the fast train were rapidly unraveling only 18 months after the vote.  According to the signed ballot argument train fares were sold to voters as going for “about $50 a person” for a ride from Los Angeles to San Francisco.  Now the estimated cost for that same train ticket has soared to $105.  The doubled cost to riders has tanked train ridership estimates by one-third.

An additional report from the San Jose Mercury News revealed that the train’s crucial ridership numbers were based on an unpublished study rather than the disclosed peer reviewed documents.  A High Speed Rail Authority internal memo indicates the public employees deliberately withheld the final assumptions, presumably to ease passage of the controversial bond initiative.  (A trick learned from the Global Warming community, perhaps?)

Meanwhile, as the state teeters on insolvency, the repayment cost is still anticipated by the High-Speed Rail Authority to hit $647 million annually, an estimate that lacks even a basic level of credibility as California’s bond interest rates are expected to soar as they reach junk status.

I was pleased to author the arguments against Proposition 1A, along with Tom McClintock, then a Senator, now a Congressman, Senator George Runner, Jon Coupal, President of the Howard Jarvis Taxpayers Association, and others.  We wrote that repaying the bond would cost $20 billion; or about $2,000 for each California family of four over the life of the bond.  If California’s bonds go to junk status, the annual repayment cost would escalate to more than $960 million per year, taking an additional $1,000 bite out of the typical California family’s budget over 30 years.

Further, the bond repayment costs will be in addition to a heavy yearly subsidy from state taxpayers to keep the train from operating in the red.  This train subsidy will take scarce tax funds from road and highway construction, as well as such mundane things as buses for urban mass transit.

California is tapped out.  We can borrow no more.  The question is, will voters realize this and start to hold on tight to their wallets in future elections?

As for the rest of America, look to California and take careful notice: incurring mountains of debt without the ability to reliably repay it comes at a high cost.  Out of control debt encumbers future generations with crushing repayment obligations – essentially subjecting America’s youth to taxation without representation while consigning them to a life with a lower standard of living than their parents and grandparents.

Posted by Big Governement
February 4, 2010
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‘Tough’ Decisions on Spending Include $2.5M on Super Bowl Ad

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Where to cut the spending? Obama has told us we have to make some tough choices. Yup, it wasn’t easy, but they decided to keep in the $2.5 million for a Census ad during the Super Bowl. That’s just a part of the $132 million we will spend to tell people to fill out and mail in their census forms.

We’d get a better bang for our buck by gambling it in Vegas. No matter what Obama says about the town, at least there we would have a chance to win big.

I understand that our constitution requires a census every ten years, but it does not require we waste our money advertising for it.  You don’t turn it in – you’re not counted. Next!

Here are some of the proposed cuts listed on the White House blog as  ”tough choices” for 2011:

  • Cutting Save America’s Treasures and Preserve America grant programs at the National Park Service. Save America’s Treasures program was started to mark the millennium and was supposed to last for two years. Both programs lack rigorous performance metrics and evaluation efforts so the benefits are unclear.
  • Eliminate the Advanced Earned Income Tax Credit (AEITC). EITC eligible taxpayers with children may file a form with their employers and receive a portion of their EITC throughout the year in their paychecks. Only a tiny number of EITC eligible taxpayers claim the AEITC; 3 percent, or 514,000 taxpayers according to the Government Accountability Office. And the error rate for the program is high: 80 percent of recipients did not comply with at least one program requirement. This ineffective and prone-to-error program should be eliminated.
  • Terminate the Brownfields Economic Development Initiative.While a consistent supporter of the brownfield clean-up on the campaign trail and a strong advocate for expanding economic opportunity in urban areas, the President proposes to eliminate BEDI, a small program duplicative of larger programs. Instead, the Administration consolidates its support for the brownfield clean-up – funding larger programs and thereby reducing overhead costs.
  • End Abandoned Mine Lands Payments to Certified States. The Abandoned Mine Land program was established to restore abandoned coal mine lands. Changes to this program allowed these funds to go to states and tribes who already have cleaned up these mine. Paying states and tribes to clean up mines that are already cleaned up was not the intention of this program, and is why it is being terminated
  • If those are tough choices we are in serious trouble.

    As a side note did you see where the money for the tax credits Obama is touting to create jobs are being paid for by the TARP funds? It was bad enough when the money was going to the banks and was earmarked to come back to us when they paid it back. It got worse when they started giving it to car and insurance companies. Now we’ve totally turned it into a slush fund. Kiss it all good bye.

    Obama and the Democrats think they can control the economy and spend our way out of our problems. They think it’s all their money to be doled out. They target tax cuts for limited times in ways they think will control our behavior instead of just cutting taxes for all – individuals, businesses, investors, etc.  They don’t understand the unintended consequences of their actions and have no clue how businesses and people plan for the long term. The result will be a slow, weak recovery.

    Hey, Big Government – quit stealing, borrowing and spending our money and get out of the way!

    Posted by Big Governement
    February 3, 2010
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    Wednesday Open Thread: Spending Edition

    From the fine folks at CATO Institute comes this chart, detailing the allocation of federal spending:

    catospending020210

    Posted by Big Governement
    February 2, 2010
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    Geithner and Bernanke: Laundering Money Through an Illegal Trust?

    This afternoon on Secure Freedom Radio we announced a breaking news story concerning the Administration’s ongoing cover-up of AIG financial wrong-doing.  In an interview with David Yerushalmi, senior litigator on the Murray v. Geithner et al lawsuit, we expose possible fraud, money-laundering and criminal activity.

    tim-geithner-and-ben-bernanke

    As Yerushalmi says in the interview, “So here’s what we find out in the midst of discovery when we depose the Treasury Department’s deponent and the Fed and get documents, here’s what we’ve learned: The Federal Reserve Bank of New York at the time that it structured the debt that it was going to give AIG insisted that not only did it get the debt, not only would it get principal and interest payments and collateral for that, it wanted 80% of AIG, precisely 77.9% of the shares and the voting rights.  But the Federal Reserve Bank and Geithner knew that it was illegal for the Fed system whether there’s a Fed or the Federal Reserve Bank of New York to own that, so what did they do….”

    Read the rest – the  transcript and audio of the interview – at Secure Freedom Radio.    Come back for an update tomorrow involving Neil Barofsky, Special Inspector General for TARP….and an animated movie showing exactly how the AIG, Treasury and Federal Reserve scheme worked…

    Posted by Big Governement
    February 2, 2010
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    Inspector General: TARP Has Created a Looming Disaster

    For all the phony talk coming out of the White House this past year about transparency and accountability, there actually is an institution outside of the executive branch which does a pretty darn good job at this most of the time: the Inspector General system. In fact, IG’s may do too good of a job by producing lengthy and meticulously detailed reports, difficult even for politically-attuned readers to digest, and which usually do not contain the types of partisan zingers that attract a lot of media attention.

    tim-geithner

    Yesterday the Inspector General for the Troubled Asset Relief Program (SIGTARP) released their Quarterly Report to Congress for the period ending 12/31/2009. The executive summary tells us all we need to know about their assessment of the TARP initiatives over the past year. This whole segment is a MUST READ (it’s not a pretty picture):

    The substantial costs of TARP — in money, moral hazard effects on the market, and Government credibility — will have been for naught if we do nothing to correct the fundamental problems in our financial system and end up in a similar or even greater crisis in two, or five, or ten years’ time. It is hard to see how any of the fundamental problems in the system have been addressed to date.

    • To the extent that huge, interconnected, “too big to fail” institutions contributed to the crisis, those institutions are now even larger, in part because of the substantial subsidies provided by TARP and other bailout programs.
    • To the extent that institutions were previously incentivized to take reckless risks through a “heads, I win; tails, the Government will bail me out” mentality, the market is more convinced than ever that the Government will step in as necessary to save systemically significant institutions. This perception was reinforced when TARP was extended until October 3, 2010, thus permitting Treasury to maintain a war chest of potential rescue funding at the same time that banks that have shown questionable ability to return to profitability (and in some cases are posting multi-billion-dollar losses) are exiting TARP programs.
    • To the extent that large institutions’ risky behavior resulted from the desire to justify ever-greater bonuses — and indeed, the race appears to be on for TARP recipients to exit the program in order to avoid its pay restrictions — the current bonus season demonstrates that although there have been some improvements in the form that bonus compensation takes for some executives, there has been little fundamental change in the excessive compensation culture on Wall Street.
    • To the extent that the crisis was fueled by a “bubble” in the housing market, the Federal Government’s concerted efforts to support home prices — as discussed more fully in Section 3 of this report — risk re-inflating that bubble in light of the Government’s effective takeover of the housing market through purchases and guarantees, either direct or implicit, of nearly all of the residential mortgage market.

    Stated another way, even if TARP saved our financial system from driving off a cliff back in 2008, absent meaningful reform, we are still driving on the same winding mountain road, but this time in a faster car.

    But don’t worry, it’s a hybrid.

    I am sure the Administration will argue that this report only reinforces the need for the financial regulatory reforms they are attempting to push through Congress. Congress, of course, is likely to water down these proposals due to intense lobbying by the financial industry. But even if they are passed as proposed, they would only slightly mitigate the risk factors identified above. By placing some new limits on the risk-taking behavior of very large financial institutions, and by mandating much broader, and more integrated, regulatory oversight of the financial industry.

    Notably, the reforms proposed by the Administration would do nothing to address the systemic risk posed by the federal government’s effective takeover of the residential mortgage industry.  Given that the government-brokered inflation of the housing market was the root cause of this crisis to begin with, the fact that the federal government is now underwriting or insuring virtually all new mortgage loans, and has purchased well over $1 trillion of existing mortgage-backed securities, should be of great concern to us all.

    The White House is in the midst of a campaign to focus populist anger on Wall Street, which is certainly deserving of some blame for the financial crisis. But by continuing to leverage the future of our children by adding trillions of dollars more to our national debt over the next few years, the Administration is demonstrating where the ultimate blame should reside for the culture of irresponsible borrowing and financial mismanagement which led us to this point. It’s not Wall Street – it’s Pennsylvania Avenue.

    Posted by Big Governement
    February 2, 2010
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    Reason.tv: Obama’s Doublethink Doubletalk (SOTU Remix)

    George Orwell defined doublethink as “the power of holding two contradictory beliefs in one’s mind simultaneously, and accepting both of them.

    When it comes to war, spending, and more, President Barack Obama’s 2010 State of the Union address showed that doublethink is alive and well in Washington, D.C.

    Approximately two minutes. Written and produced by Paul Feine.

    For downloadable versions of all videos, go to Reason.tv. For automatic notifications when new content goes online, subscribe to Reason.tv’s YouTube channel.

    T

    Posted by Big Governement
    February 1, 2010
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    There Is some Budget Good News, but It Is Actually Really Bad News

    The  Office of Management and Budget has released the President’s FY2011 budget and the Congressional Budget Office has released its semi-annual Budget and Economic Outlook. Much of the coverage of these documents has focused on deficit numbers. This is not a trivial concern, particularly since the Bush-Obama policies of bigger government have dramatically boosted red ink.

    001-1210120114-Red-Ink

    But the most important numbers in the budget documents are the estimates of what is happening to government spending. The good news is that burden of government spending is projected to decline over the next few years from about 25 percent of GDP to less than 23 percent of GDP.

    That’s the good news.

    The bad news is that federal government outlays only consumed 18.2 percent of economic output when Bush took office. In other words, notwithstanding the good news cited above, the size and scope of government has increased dramatically since 2001. The worse news is that the long-run spending forecasts show a cataclysmic expansion in the burden of government. The “optimistic” estimate is that the federal government will consume more than 30 percent of GDP by 2050 and 40 percent of GDP by 2080.

    Posted by Big Governement
    February 1, 2010
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    We Need a Real Spending Freeze and Tax Cuts

    freeze

    Don’t you hate it when you go to a 50% off sale and then realize the store marked up all the prices in order to offer the big savings? Welcome to President Barack Obama’s spending freeze.

    It’s hard to keep up with the shocking numbers under Obama. Federal spending was up 18% in his first year and the deficit was $1.4 trillion, almost three times greater than it was the previous year. That’s 9.9% of 2009’s GDP, more than three times the post World War II average. (Sorry, Barry, but you can’t blame it all on Bush. That budget was done under a Democrat House and Senate and signed by you. ) Depending on whose numbers you believe federal nondefense discretionary spending will increase another 7-10% for 2010.

    The Congressional Budget Office says we’ll run at least another $1.35 trillion deficit. The average deficit for 2011-2020 will be around $600 billion per year. Even in Washington that’s a lot of money.

    The spending boom has not stimulated the economy and unemployment has climbed to over 10%.

    But don’t worry. Now that Obama has created “government gone wild” he wants a spending freeze to save your money. As my dad used to tell my mom after she bragged about all the money she saved while shopping, “We can’t afford to save anymore.”

    How much will we save? It depends on what “spending freeze” means.

    Here is the spending that won’t be frozen:

    • The $787 billion stimulus – Whoops, it’s now $862 billion according to the CBO
    • The new stimulus – sorry, “jobs program”
    • Any new health care plan
    • Medicare
    • Medicaid
    • Social Security
    • Veteran’s Affairs
    • Homeland Security
    • Defense

    Here is the spending that will be frozen if Obama’s plan gets passed:

    • Discretionary, nonmilitary spending from 2011-2013 (with exceptions even to that, it look like it will save us about $15 billion for 2011 from a budget of more than $3 trillion)

    This ice cube sized spending freeze will do almost nothing to help. It’s time to bring in Mr. Freeze Meister (see above photo) and the liquid nitrogen.  Private businesses and individuals have had to cut back everywhere they can. It’s time for our federal government to do the same. Here’s the plan:

    • No increase in spending in any program and all government salaries frozen for the next two years.
    • All new hiring frozen except for defense for obvious reasons.
    • All government pensions, including for the legislative and executive branches, will be phased out. If a 401k plan is good enough for the rest of us, it’s good enough for our government workers.
    • All government employees, including our politicians, will be required to take one week off without pay as many in the private sector have had to do.
    • Government employees will be monetarily rewarded for the savings they create in their departments.

    Long term economic growth will come from capital and jobs. We must stop taking money from people to spend on an ever bigger government. It’s time to be bold. Cut income taxes across the board. Cut our corporate tax rate from the second highest in the industrialized world to the lowest at 10%. Cut the capital gains tax to zero for the next two years. Watch the world send money and jobs to America and existing American companies stay here, expand and hire.

    The idea that these types of tax cuts explode our debt has been proven false by Coolidge, JFK, Reagan and George W. Bush. Every time these types of tax cuts have been applied our economy has improved markedly and tax revenues have increased. The deficits and cumulative debt have been created by the increased spending, not by letting Americans keep more of their hard earned money.

    Obama and the Democrats won’t suggest any of these things. The question is, when will the Republicans?

    To paraphrase the Clintons, it’s the spending, stupid.

    (Don’t miss my new web show Recap with Greg Knapp segment one andsegment two. It’s a week’s worth of politics and current events crammed into about 7 minutes with a bunch of humor mixed in.)

    Posted by Big Governement
    January 29, 2010
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    Obama’s Lobbyist Slams Mask Big K Street Payday

    In his State of the Union speech, the president puffed up his chest, fixed his Mr. Scornful face, and once again pulled out the populist’s handbook to bash those evil, monstrous lobbyists.

    Obama mentioned lobbyists seven times in his address and in every case they were used as a scapegoat to explain away Washington’s inability to get one thing or another done.

    obama-close-up

    Obama promised — again and for the thousandth time — to “end the outsized influence of lobbyists” in Washington. He then praised himself for excluding lobbyists from jobs in his administration and he proposed even more limits on them.

    This attack on lobbyists is cathartic and makes for great populist boilerplate, of course, but there isn’t much truth in Obama’s attack on them because the fact is K Street — the D.C. street where many lobbying firms are located — has made more money off the Obama Administration than from any previous president.

    And Obama has been pretty blatant about ignoring the obvious disconnect between his populist harangues against lobbyists and his coddling and sidling up to them. Obama’s big paydays to lobbyists at nearly every level has been nothing short of breathtaking. It has been like this since day one.

    One is tempted to call the president a prevaricator on the issue.

    Obama didn’t even let his TelePrompters get cold before he was snuggling up to lobbyists. The Hill reported that the very next day after Obama attacked the evils of lobbying in the STOU speech his administration invited a bunch of them to private briefings.

    The Hill quoted one lobbyist’s frustration with Obama’s habit of talking out of both sides of his mouth where lobbyists are concerned. “Bash lobbyists, then reach out to us. Bash lobbyists [while] I have received four Democratic invitations for fundraisers,” The Hill reported this lobbyist as saying.

    Meanwhile, back in December, Politico reported that Lobbyists were on pace for a record year. It was estimated that lobbyists would spend $3.3 billion lobbying the federal government in 2009.

    “We’ve never had as good a year,” said one lobbyist whose shop deals mostly with financial services and health care issues. “It’s been a tremendously busy year, and it’s going to keep getting that way,” the lobbyist said, noting that both health care and financial reform will remain active as congressional action moves from drafting legislation to implementation to the inevitable fixes.

    Never had as good a year? I thought Obama was the veritable Jack the Lobbyist killer?

    During the SOTU Obama wanted brownie points because he “excluded lobbyists” from important jobs in his administration. This has been a longtime refrain from this president. Even as he began his term last year he claimed he was instituting the “strictest ethics rules ever applied” to lobbyists in Washington. The truth, however, shows that his back patting does not quite ring true. As early as February 2 of 2009 it was becoming clear that quite a few lobbyists had, indeed, been hired into the Obama Administration. It was so obvious that Politico began tracking the number of lobbyists that Obama was hiring — and waiving his new “rules” for. Politico discovered at least a dozen had been hired by the end of January, 2009.

    The lobbyist’s big payday didn’t end there. In March Chris Frates reported that former Democratic legislative aides were “hot commodities” for lobbying firms as Obama’s new rules became increasingly dense and hard to understand. By May 30 Roll Call was reporting (subscription required) that the Obama Administration was lifting some of its bans on lobbyists so that they could get their hooks more easily into the stimulus spending. Last August Obama even “gave a seat at the table” of healthcare negotiations to a former Congressman turned healthcare lobbyist.

    If I can paraphrase Chico Escuela, former faux baseball great, the truth is that Obama has been berry, berry good to lobbyists. So much for the hopinchange and the end of lobbyist’s influence in the era of Obama.

    Posted by Big Governement
    January 29, 2010
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    Reason.tv: Celebrating Obama’s Surprising Jobs Program Successes

    The president has increased opportunities in at least three different fields.

    For more videos, please go to Reason.tv’s YouTube Channel.

    Posted by Big Governement
    January 28, 2010
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    What Did Obama Say in his State of the Union Address?

    The State of the Union Address that Barack Obama delivered last night bore little, if any, resemblance to the speech that, in my opinion, he should have delivered. The actual speech was, in fact, all too typical of the genre. It ran for an hour or more, and it consisted of an interminable laundry list of putative accomplishments and proposals. When, near the end, the President said, “I don’t quit,” I found myself thinking, “No, surely! But I very much wish you would.” In the course of an hour, I felt as if I had spent three weeks listening to the man. I very much doubt that I was alone.

    obamamirror-1

    Seven things stood out.

    First, at no point did Barack Obama acknowledge that the promises that he made in campaigning for the so-called stimulus bill have gone unredeemed and that unemployment has continued to grow in a fashion that, he told us, it would not.

    Second, much of the speech consisted in self-praise that, in the grim circumstances that we now face, seemed out of place.

    Third, despite what the Climategate scandal has revealed concerning the dishonesty of those who have shilled for bills like the cap-and-trade measure passed by the House of Representatives, the President insists on our basing American public policy on discredited science.

    Fourth, our President is still telling the same old lies concerning the healthcare reform measures passed by the Senate and the House of Representatives; and, despite everything that has happened, he intends to push for their reconciliation and passage into law by one means or another.

    Fifth, he intends to raise taxes on the investing class — both by means of imposing a tax on the large banks and investment operations which will be passed on to those who make use of the services they provide, and by allowing the tax cuts introduced by President Bush to lapse for those making over $250,000 a year — and he has no appreciation for the role which the investing class, if not denied the rewards for which it has incurred considerable risks, can play in creating new jobs and fostering prosperity.

    Sixth, Barack Obama has a vast array of programs that he wants to put in place, and he provided no information as to how these would be paid for.

    Seventh, he is not in any way serious in the arguments that he makes for fiscal prudence.

    I doubt that President Obama helped himself or his party with his State of the Union Address. A year ago, such a speech might have done him some good and would have done him no harm. By now, however, too many people are aware that they are being had. If anything, his decision to continue pushing his signature measures — cap and trade and healthcare reform — is likely to wreak havoc on his party in November.

    Posted by Big Governement
    January 28, 2010
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    What Did Obama Say in his State of the Union Address?

    The State of the Union Address that Barack Obama delivered last night bore little, if any, resemblance to the speech that, in my opinion, he should have delivered. The actual speech was, in fact, all too typical of the genre. It ran for an hour or more, and it consisted of an interminable laundry list of putative accomplishments and proposals. When, near the end, the President said, “I don’t quit,” I found myself thinking, “No, surely! But I very much wish you would.” In the course of an hour, I felt as if I had spent three weeks listening to the man. I very much doubt that I was alone.

    obamamirror-1

    Seven things stood out.

    First, at no point did Barack Obama acknowledge that the promises that he made in campaigning for the so-called stimulus bill have gone unredeemed and that unemployment has continued to grow in a fashion that, he told us, it would not.

    Second, much of the speech consisted in self-praise that, in the grim circumstances that we now face, seemed out of place.

    Third, despite what the Climategate scandal has revealed concerning the dishonesty of those who have shilled for bills like the cap-and-trade measure passed by the House of Representatives, the President insists on our basing American public policy on discredited science.

    Fourth, our President is still telling the same old lies concerning the healthcare reform measures passed by the Senate and the House of Representatives; and, despite everything that has happened, he intends to push for their reconciliation and passage into law by one means or another.

    Fifth, he intends to raise taxes on the investing class — both by means of imposing a tax on the large banks and investment operations which will be passed on to those who make use of the services they provide, and by allowing the tax cuts introduced by President Bush to lapse for those making over $250,000 a year — and he has no appreciation for the role which the investing class, if not denied the rewards for which it has incurred considerable risks, can play in creating new jobs and fostering prosperity.

    Sixth, Barack Obama has a vast array of programs that he wants to put in place, and he provided no information as to how these would be paid for.

    Seventh, he is not in any way serious in the arguments that he makes for fiscal prudence.

    I doubt that President Obama helped himself or his party with his State of the Union Address. A year ago, such a speech might have done him some good and would have done him no harm. By now, however, too many people are aware that they are being had. If anything, his decision to continue pushing his signature measures — cap and trade and healthcare reform — is likely to wreak havoc on his party in November.

    Posted by Big Governement
    January 27, 2010
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    What Should Obama Say Tonight?

    The State of the Union Address is ordinarily a bore. It generally consists of a laundry list of proposals, and the list nearly always seems interminable. If Barack Obama has moxie, however, tonight could be different. His State of the Union Address could be a real game changer.

    picture29

    Here is how he could do it – if he was really intent on saving his Presidency and on turning a disgraceful performance in that office into something worthy of eulogy. This evening, after the usual formalities, he could say.

    My fellow Americans, let me begin by stating the obvious. The state of our union is not good. We seem to be – we may be – coming out of a recession. But, if so, the recovery is not only jobless; it is accompanied by an increase in unemployment.

    This is contrary to my expectation. When I became President, my economic advisers told me that the rate of unemployment would be considerably lower now than it is. They were mistaken, and I erred in taking their advice. The fault is mine. I may not have gotten us into a severe recession, but I advanced proposals and I pursued policies which have prolonged and deepened it. I am at fault.

    To be precise, I signed into law a so-called stimulus bill that has thus far retarded economic growth by greatly increasing the size of the federal bureaucracy, the expense of supporting it, and the national debt. I urged Congress to pass cap-and-trade legislation that, had it become law, would have greatly increased the cost of energy, and I encouraged Congress to pass a healthcare reform that would have increased not only the cost of medical care but the burden on employers attendant on hiring. Everything that I did in my first year in office contributed to economic uncertainty and made employers less likely to hire and investors wary of investing. I am at fault.

    When I became President, I knew next to nothing about economics. I had never run a business, and the only political experience that I had had was in running for office. I have now had a tutorial, and the lessons have been learned at a considerable expense – not just to me but to you. The fault is mine.

    I have now learned those lessons, and I am now intent on doing everything within my power to promote an economic recovery and prosperity. To that end, I invite everyone in Congress – Republicans as well as Democrats – to join with me in reversing course.

    First, I propose that we move towards a balanced budget and even towards a reduction in the national debt. To this end, I propose that Congress repeal the stimulus bill and enact a spending freeze and a hiring freeze with regard to all domestic programs, and I ask that Congress sanction the establishment of a bipartisan commission – made up of Republicans and Democrats in equal numbers – to recommend which federal programs should be eliminated. At the national level, we have been living beyond our means, and we cannot continue to do so. There are, I suspect, departments in the federal government that have no reason to exist: departments that concern themselves with matters – such as education – which are best left to the states, the localities, and individual citizens.

    Second, I ask Congress to make permanent the tax cuts initially proposed by President Bush. I once spoke of the government creating jobs. I now realize that jobs in the government are parasitic on jobs in the private sector and that a tax code that punishes entrepreneurs for their success is a tax code that discourages the creation of jobs by the only people genuinely capable of creating the jobs that matter.

    Third, I ask that for a three-year period Congress relieve employers of the payroll contribution made to the Social Security administration so that they can hire new workers and rehire as many as possible of those laid off.

    Fourth, I call on Congress to set aside the cap-and-trade bill passed last year by the House of Representatives. To my dismay and embarrassment, we have recently learned  that the work done by the Climatic Research Unit at the University of East Anglia, which formed the basis for the four reports issued by the United Nations’ Intergovernmental Panel on Climate Change, is a sham – that the data was doctored, that the computer simulation was a fraud, and that systematic efforts were made by the most prominent climate scientists to corrupt the peer-review process and suppress legitimate criticism: all for the purpose of imposing a strait jacket on the world economy. In my inaugural address, I promised to “roll back the specter of a warming planet” and “restore science to its rightful place.” I intend to be true to my word. Until there is a genuine consensus among the scientists dealing with climate change, I would urge that we do nothing at all. Above all, I urge that nothing be done that would slow down this country’s economic recovery or inhibit economic growth.

    Fifth, I call on Congress to set aside the question of healthcare reform. I objected, when I ran for the Democratic nomination for the Presidency, to the notion that American citizens should be forced to buy health insurance. I regret having deviated from that position. I have learned in recent days by way of careful study that only a small proportion of those lacking health insurance lack it because it is unavailable to them. I now recognize that most of those without such insurance are either illegal immigrants, who do not deserve our support, or young people or well-to-do people with no need or desire for insurance. I do not doubt that changes need to be made in our healthcare system, but I am now persuaded that we should enact only those changes that can be made without adding directly or indirectly to the cost of insurance or the burden of taxation.

    Sixth, I have decided to keep the prison at Guantamo open and to have all terrorists whom we catch tried by military tribunals. Here also I was in error. We are at war, ladies and gentleman. We have to win this war – and coddling terrorists is not the way to do it.

    There is, of course, much else that could be said, but this is not the time. As a nation, we need at this point in our history to focus our attention on the economy and on the twilight war against Islamic terrorism in which we are now engaged.

    I doubt very much whether President Obama will say anything of the sort. But if he did – and if he followed through – I am confident that he could restore his stature, regain a measure of popularity, and rescue his party from the cataclysmic defeat in store for it in November. I am told that Newt Gingrich once said of William Jefferson Clinton that the man never stopped learning. Can anything of the sort be said of Barack Obama? Soon – all too soon — we will learn.

    Posted by Big Governement
    January 27, 2010
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    What Lesson Did Brown Teach Obama/Democrats? Apparently Pass Bad Stuff Faster

    Once Scott Brown took away the Democrat majority in the Senate by becoming the Republican’s 41st vote based in large part on the fact that Massachusetts voters were unhappy with Obamacare, one would think that President Obama and the Democrat Party would learn a vital lesson. A look at a dozen or so stories across the media over the last few days shows that the Democrats have indeed learned a lesson from Scott Brown’s victory. But is it the right lesson?

    Scott Brown

    Did they learn that they’d better slow down their freight train of extremely left leaning policies? Did they learn that with 58% of Americans standing in opposition to Obamcare they’d better reassess their direction? Have they learned from an entire year of raucous healthcare townhalls, multiple loses at the polls, and tea party protests that brought out over a million people that they might be agitating the American people?

    Nope.

    Looks like the lesson they’ve learned is that they have to pass their bad policies faster before they really lose power in the November midterm elections. It seems that a certain self-righteous arrogance is what we are seeing from Democrats instead of an acknowledgment that the voters have chastised them in Virginia, New Jersey, and now blue, blue Massachusetts. Democrats have not learned that they’d better listen to the voters but instead have decided that they better move on their agenda even faster. It’s hubris that they’ve assumed not a mien of humbleness.

    For his part the president has boldly claimed that even as more Americans every day are turning against his ideas he’d rather make of himself a “really good one-term president” and pass his cherished policies than win a second term. In yet another TV interview Obama told ABC’s Diane Sawyer that he doesn’t care if he pays a political price at the hands of an unhappy electorate.

    The president has previously admitted the convoluted process of cobbling together the huge bill had alarmed voters, but said today he will not back off of tackling large issues despite the political jeopardy involved.

    So it’s Katie bar the door, and full steam ahead as far as this president is concerned — voters be damned.

    The president isn’t the only one. One-time Senate Majority leader Tom Daschle — a man who himself was thrown out of office by his constituents — told reporters about the lesson Brown taught him. Oh, it isn’t to slow down and think harder, no-siree. As far as Daschle is concerned the Dems need to hurry up and “do the right thing” and pass the hard bills that Americans are against. That, to Daschle, is “political courage.” Some may call it political suicide, others extreme arrogance, but, well, you know.

    Another voice of the Democrat establishment is campaign wunderkind David Plouffe who the president has called back to Washington to help the donkies retake victory at the polls in 2010. Did Plouffe advise his patrons to step back and reevaluate their position? Uh, nope. Plouffe immediately began by saying that the Democrats should hurry up and pass Obamacare.

    In a recent mass emailing, for instance, Plouffe told supporters that they have to push even harder on every policy that has caused the voters to rise in anger against them.

    The President’s resolve has never been stronger to keep fighting for health insurance reform, for lasting job creation, and to rein in the big banks and fight the undue influence of lobbyists. Wednesday’s speech will be a pivotal moment for us all to get on the same page and continue the fight together.

    Lesson learned? Hardly.

    These few aren’t the only ones. The Associated Press is reporting that Congressional Democrats are gathering to unite on a health care strategy and that strategy is to pass through the House of Representatives the same Senate bill that drove Massachusetts voters to vote against their Democrat candidate for Senate.

    Lesson learned: Hubris, not humbleness.

    So what are the Democrat’s rewards thus far? Check out these headlines:

    Poll: Americans glad Dems lost supermajority

    Is The Senate Also In Play?

    CNN Poll: 3 of 4 Americans say much of stimulus money wasted

    Republicans Pull Ahead on Generic Ballot

    If these headlines are any indication the voters really are trying to teach the Democrats a lesson. But if I can paraphrase a saying, Is Demmie learning?

    Posted by Big Governement
    January 26, 2010
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    The Pork Report, January 26, 2009: Atlantic City Edition

    Federal budget deficit will reach $1.35 trillion in 2010, and Congress is already planning to borrow billions more to pay for a new jobs bill and another war funding bill

    Most TSA employees to receive performance-based pay hikes

    Taxpayers spent more than $1.1 million to send members of Congress and their staff on junkets to the Copenhagen Climate Summit in Denmark

    More than half of the companies that have received federal stimulus dollars to do highway work in Massachusetts have a history of breaking the law

    Monterey wine association receives $98,5000 federal stimulus grant

    $2 million of federal stimulus money paying to teach Ohio residents how to cut, color and style hair

    Atlantic City spends federal stimulus money to pay for more than $276,000 worth of playground equipment

    Nearly three out of four Americans think that at least half of the money spent in the federal stimulus plan has been wasted, according to a new CNN poll

    Texas spends federal transportation funds on “spectacular” rest areas that include “state-of-the-art” vending machines and even a Battleship Texas restoration project

    Louisiana spent millions of dollars of federal funds intended for health care for low income and uninsured patients to pay for the state’s hazardous road claims

    Posted by Big Governement
    January 26, 2010
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    Where’s Our Copenhagen Souvenir?

    Drudge is pointing to this damning story to proclaim “TRIPS TO COPENHAGEN COST OVER $1,000,000… ” for Congressional trips across the pond. What did you get for it, other than the joy of sending “106 people from the House and Senate” which included “spouses, a doctor, a protocol expert and even a photographer”? Nothing. No climate deal (thankfully). While you gave the shirt off your back, you didn’t even get this:

    Posted by Big Governement
    January 25, 2010
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    Stimulus Wasted and Most Americans Know It

    toilet money

    A new poll by CNN, shows that almost 75% of Americans believe the “stimulus” wasted most of our money. There’s more:

    • 63% of public thinks projects in plan were included for purely political reasons.
    • 21% of people in poll say nearly all the money in the stimulus has been wasted.
    • Only 4% think that no stimulus dollars have been wasted.
    • 56% of the public opposes the stimulus

    Joe Klein says if you think like this you’re just Too Dumb to Thrive. Klein believes we should be thanking The One for our big tax cut. Hey, I’m always in favor of letting people keep more of their own money, but if you’re looking to stimulate the economy we are doing the wrong kinds of tax cuts. Klein also ignores all the tax increases The Big O has planned.

    Maybe people are a little ticked over how some of the “stimulus” money has been spent.

    Some of your money has gone “to help fund nude simulated-sex dances, Saturday night ‘pervert’ revues and the airing of pornographic horror films at art houses in San Francisco.” (I guess that does “stimulate” certain Americans.)

    $2.3 million has gone to help the hair stylists, nail technicians and massge “therapists” of tomorrow. (Americans won’t get their “happy ending” out of that one.)

    Your hard earned money has been spent on toilets, rental cars, sediment removal and more!

    Very little of the “stimulus” does much of anything to grow the economy and create jobs. Here’s a rundown of where the money has gone so far. This type of government spending never works. Government doesn’t create wealth. Every dollar they spend they have to take from you or borrow from our future.

    We should cut income taxes across the board, cut corporate taxes so we go from the second highest in the world at 39.54% to the lowest in the industrialized world at 10%, and (for the next two years) cut capital gains taxes to ZERO. Watch capital and company headquarters flood America. Jobs will follow.

    Less government. More freedom. Allow people to keep, spend and invest more of their own money. Let failing companies fail and stop trying to reinflate the housing bubble. It ain’t rocket science.

    rocket

    Posted by Big Governement
    January 25, 2010
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    Explaining the Tea Party Movement and the Bewilderment of the Political Class

    It is apparently a mystery to a lot political insiders why the Tea Parties have become so popular with so many Americans in state after state across the nation.

    Many have simply tried to dismiss the phenomena as the ranting of a relatively small number of angry right-wing zealots. They are dead wrong but one gets the feeling the political class finds this easy dismissal far more comforting than the unsettling truths driving angry and vocal dissatisfaction by people from across the political spectrum.

    Tea-Party-11a_storyphoto

    “Real people” like me resonate in politics right now because of the growing chasm between what the political elites of both parties see as the best course for the nation—and for themselves– and the hopes and fears of the average American man and woman. In China that difference might mean very little to government as we saw in Tiananmen Square but, according to the Founding Fathers, such a division should not even exist here in the United States.

    Those who are passionately protesting at Tea Parties and making themselves felt at the polls have rightly detected more than a hint of contempt for the average citizen. If everything were going well such elitist arrogance might be accepted, as it has been in the past. But things are not going well for our nation and more and more people are challenging the performance, ideas and motivations of those who hold themselves out as smarter and better than the rest of us.

    Can a plumber or carpenter, housewife or truck driver (clutching their bibles and guns as Mr. Obama once sneered) have anything much to add to the public policies developed at the seats of government and financial power? To those of us “out here” the righteously indignant answer is “yes”–and not a moment too soon.

    To understand the Tea Party perspective, political elites will have to come to understand that they are seen as having failed us. Whether it’s “Brownie’s” “great job” after Hurricane Katrina or the recent “system worked” remarks by Janet Napolitano or the tax problems of various government leaders (including the chairman of the House committee writing tax laws), we feel betrayed. This judgment is actually directed at politicians on both the right and the left. The arrogant and often contemptuous “smart guys” have saddled us with failure after failure and now seem bewildered that people are so angry.

    Have political insiders given us a Social Security and Medicare system with more than $100 trillion in unfunded liabilities? Yes. Did the “successful” job stimulus program really end up costing more than $200,000 per low level job? Yes. Did we get help with usurious mortgage and credit card rates and life wrecking job losses caused, in truth, by bad government? No. Does the public education system really produce 50% and higher drop out rates in almost every major city? Yes. Does the unfathomable income tax system really cost us more than $300 billion a year in tax preparation expenses? Yes. Has spending billions of dollars to confiscate blue-haired ladies’ knitting needles and millions of pocket knives and lighters stopped terrorist bombers? No. And to many of us, the answer to everything is not shifting more of the fruits of our labors to the 40% of the population who pay no income taxes at all.

    If all politics is really local, consider Washington D.C.’s abysmal public education record. The political clout of teacher’s unions saw the school choice program there dismantled last year even though it was working very well and wildly popular with poor African-American parents desperate for something better for their children. Their views were summarily ignored and then trampled on by both the White House and Congress because of the political advantage to politicians willing to ignore the fate of these children.

    Are we angry? Yes. Because even worse than being routinely ignored by our leaders is the growing certainty that policy decisions that are bad for citizens and the nation often work out to the advantage of those inside government and those close to government. If you doubt this or wonder why there is such grassroots fervor for the FairTax, for example, take another hard look at the tax code’s 67,500 pages of regulations, the “royal treatment” of Congressional tax committee members and staff and the billions spent on special interest tax lobbying every year.

    The Tea Party movement will grow larger and larger and will resist being taken over by insiders who see potential for their party or candidates until the distance between what average Americans feel and what political leaders do in pure self-interest has been closed. To understand the anger in the Tea Parties one has to understand that many Americans still expect our government to act in the public, instead of private or political interest.

    Posted by Big Governement
    January 25, 2010
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    Calling another Stimulus a ‘Jobs Bill’ Won’t Make it Work any Better than Last Year’s Fiscal Flop

    This new video from the Center for Freedom and Prosperity explains how last year’s so-called stimulus was a flop – and also reveals why politicians are pushing for another big-government spending bill.

    Interestingly, since last year’s stimulus was such a disaster, the redistributionists in Washington are calling their new proposal a “jobs bill.” But as I say in the video, this is akin to putting perfume on a hog.

    For further background, here is a video explaining why Keynesian economics is wrong and another predicting (in advance!) that last year’s stimulus would be a mistake. And just in case anyone actually wants the economy to grow faster, here’s one about policies that actually increase prosperity.

    Posted by Big Governement
    January 23, 2010
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    Halleluiah! Obama Endorses Task Force to Look at Cutting Deficit After Tripling It His First Year

    Well, Halleluiah! Barack Obama says he wants to cut the spiraling national deficit.

    Barack Obama tripled the national deficit last year.

    This year Barack Obama is on track to nearly quadruple Bush’s 2008 budget deficit.


    (CBO Estimates)

    But don’t worry.

    Barack Obama called for a task force today to come up with a plan to curb his spiraling budget deficits.

    He’s serious.


    Breitbart reported:

    President Barack Obama has endorsed a bipartisan plan to name a special task force charged with coming up with a plan to curb the spiraling budget deficit.

    The bipartisan 18-member panel would study the issue for much of the year and report a deficit reduction blueprint after the November elections that would be voted on before the new Congress convenes next year.

    Unlike a plan tentatively endorsed on Tuesday by the White House and Capitol Hill Democrats, the new task force would have to be approved by Congress, where there’s lots of opposition.

    Here’s an idea…

    If Obama really wanted to cut deficits he would eliminate the rest of the failed Stimulus package spending that is slated for this year and beyond.

    Over $236 billion is scheduled to be spent this year alone.

    (Washington Post graphic)

    If Barack Obama and democrats were really serious about cutting the national deficit they could admit that the Stimulus bill was a failure and cancel this year’s spending. But then again, Obama would really have to be serious about cutting the deficit.

    Posted by Big Governement
    January 23, 2010
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    A Victory for Fiscal Sovereignty and a Long-Overdue Defeat for the IRS

    A Swiss court just threw a wrench in the gears of an IRS effort to impose bad US tax law on an extraterritorial basis, ruling that UBS does not have to hand over data to the American tax authorities.

    swiss

    This ruling nullifies an agreement that the Swiss government was coerced into making with the US government last year. In typical arrogant fashion, the IRS already has indicated that it still expects acquiescence, notwithstanding Switzerland’s strong human rights policy on personal privacy. The Bloomberg story excerpted below has the details, but it’s worth noting that this entire fight exists solely because the internal revenue code imposes double taxation on income that is saved and invested and imposes that bad policy on economic activity outside America’s border. But just as other governments should not have the right to impose their laws on things that happen in America, the United States should not have the right to trample the sovereignty of other nations:

    A UBS AG account holder won a Swiss court case preventing data from being disclosed in a ruling that may impede a U.S. crackdown on overseas tax evasion. The failure by U.S. citizens to complete certain tax forms or declare income doesn’t constitute “tax fraud” that would require Switzerland to disclose account data, the country’s Federal Administrative Court ruled in a judgment released today. …“The prosecutors at the Justice Department are not going to be happy with this opinion,” Namorato said in an interview in Washington. …U.S. Justice Department spokesman Charles Miller declined to comment. …The Internal Revenue Service said in a statement that while the agency hadn’t reviewed the ruling it “had every expectation that the Swiss government will continue to honor the terms of the agreement.” …Switzerland distinguishes between tax fraud, which is a crime, and tax evasion, which is a civil offense.

    This battle is part of a broader effort by uncompetitive nations to persecute “tax havens.” Creating a tax cartel for the benefit of greedy politicians in France, Germany, and the United States would be a mistake. An “OPEC for politicians” would pave the way for higher taxes, as explained here, here, and here. But this also is a human rights issue. Look at what happened recently in the thugocracy known as Venezuela, where Chavez began a new wave of expropriation. The Venezuelans with money in Cayman, Miami, and Switzerland were safe, but the people with assets inside the country have been ripped off by a criminal government. Or what about people subjected to persecution, such as political dissidents in Russia? Or Jews in North Africa? Or ethnic Chinese in Indonesia? Or homosexuals in Iran? And how about people in places such as Mexico where kidnappings are common and successful people are targeted, often on the basis of information leaked from tax departments. This world needs safe havens, jurisdictions such as Switzerland and the Cayman Islands that offer oppressed people the protection of honest courts, financial privacy, and the rule of law. Heck, even the bureaucrat in charge of the OECD’s anti-tax competition campaign admitted to a British paper that “tax havens are essential for individuals who live in unstable regimes.” With politicians making America less stable with each passing day, let’s hope this essential freedom is available in the future.

    Posted by Big Governement
    January 23, 2010
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    A Victory for Fiscal Sovereignty and a Long-Overdue Defeat for the IRS

    A Swiss court just threw a wrench in the gears of an IRS effort to impose bad US tax law on an extraterritorial basis, ruling that UBS does not have to hand over data to the American tax authorities.

    swiss

    This ruling nullifies an agreement that the Swiss government was coerced into making with the US government last year. In typical arrogant fashion, the IRS already has indicated that it still expects acquiescence, notwithstanding Switzerland’s strong human rights policy on personal privacy. The Bloomberg story excerpted below has the details, but it’s worth noting that this entire fight exists solely because the internal revenue code imposes double taxation on income that is saved and invested and imposes that bad policy on economic activity outside America’s border. But just as other governments should not have the right to impose their laws on things that happen in America, the United States should not have the right to trample the sovereignty of other nations:

    A UBS AG account holder won a Swiss court case preventing data from being disclosed in a ruling that may impede a U.S. crackdown on overseas tax evasion. The failure by U.S. citizens to complete certain tax forms or declare income doesn’t constitute “tax fraud” that would require Switzerland to disclose account data, the country’s Federal Administrative Court ruled in a judgment released today. …“The prosecutors at the Justice Department are not going to be happy with this opinion,” Namorato said in an interview in Washington. …U.S. Justice Department spokesman Charles Miller declined to comment. …The Internal Revenue Service said in a statement that while the agency hadn’t reviewed the ruling it “had every expectation that the Swiss government will continue to honor the terms of the agreement.” …Switzerland distinguishes between tax fraud, which is a crime, and tax evasion, which is a civil offense.

    This battle is part of a broader effort by uncompetitive nations to persecute “tax havens.” Creating a tax cartel for the benefit of greedy politicians in France, Germany, and the United States would be a mistake. An “OPEC for politicians” would pave the way for higher taxes, as explained here, here, and here. But this also is a human rights issue. Look at what happened recently in the thugocracy known as Venezuela, where Chavez began a new wave of expropriation. The Venezuelans with money in Cayman, Miami, and Switzerland were safe, but the people with assets inside the country have been ripped off by a criminal government. Or what about people subjected to persecution, such as political dissidents in Russia? Or Jews in North Africa? Or ethnic Chinese in Indonesia? Or homosexuals in Iran? And how about people in places such as Mexico where kidnappings are common and successful people are targeted, often on the basis of information leaked from tax departments. This world needs safe havens, jurisdictions such as Switzerland and the Cayman Islands that offer oppressed people the protection of honest courts, financial privacy, and the rule of law. Heck, even the bureaucrat in charge of the OECD’s anti-tax competition campaign admitted to a British paper that “tax havens are essential for individuals who live in unstable regimes.” With politicians making America less stable with each passing day, let’s hope this essential freedom is available in the future.

    Posted by Big Governement
    January 23, 2010
    Leave a Comment

    A Victory for Fiscal Sovereignty and a Long-Overdue Defeat for the IRS

    A Swiss court just threw a wrench in the gears of an IRS effort to impose bad US tax law on an extraterritorial basis, ruling that UBS does not have to hand over data to the American tax authorities.

    swiss

    This ruling nullifies an agreement that the Swiss government was coerced into making with the US government last year. In typical arrogant fashion, the IRS already has indicated that it still expects acquiescence, notwithstanding Switzerland’s strong human rights policy on personal privacy. The Bloomberg story excerpted below has the details, but it’s worth noting that this entire fight exists solely because the internal revenue code imposes double taxation on income that is saved and invested and imposes that bad policy on economic activity outside America’s border. But just as other governments should not have the right to impose their laws on things that happen in America, the United States should not have the right to trample the sovereignty of other nations:

    A UBS AG account holder won a Swiss court case preventing data from being disclosed in a ruling that may impede a U.S. crackdown on overseas tax evasion. The failure by U.S. citizens to complete certain tax forms or declare income doesn’t constitute “tax fraud” that would require Switzerland to disclose account data, the country’s Federal Administrative Court ruled in a judgment released today. …“The prosecutors at the Justice Department are not going to be happy with this opinion,” Namorato said in an interview in Washington. …U.S. Justice Department spokesman Charles Miller declined to comment. …The Internal Revenue Service said in a statement that while the agency hadn’t reviewed the ruling it “had every expectation that the Swiss government will continue to honor the terms of the agreement.” …Switzerland distinguishes between tax fraud, which is a crime, and tax evasion, which is a civil offense.

    This battle is part of a broader effort by uncompetitive nations to persecute “tax havens.” Creating a tax cartel for the benefit of greedy politicians in France, Germany, and the United States would be a mistake. An “OPEC for politicians” would pave the way for higher taxes, as explained here, here, and here. But this also is a human rights issue. Look at what happened recently in the thugocracy known as Venezuela, where Chavez began a new wave of expropriation. The Venezuelans with money in Cayman, Miami, and Switzerland were safe, but the people with assets inside the country have been ripped off by a criminal government. Or what about people subjected to persecution, such as political dissidents in Russia? Or Jews in North Africa? Or ethnic Chinese in Indonesia? Or homosexuals in Iran? And how about people in places such as Mexico where kidnappings are common and successful people are targeted, often on the basis of information leaked from tax departments. This world needs safe havens, jurisdictions such as Switzerland and the Cayman Islands that offer oppressed people the protection of honest courts, financial privacy, and the rule of law. Heck, even the bureaucrat in charge of the OECD’s anti-tax competition campaign admitted to a British paper that “tax havens are essential for individuals who live in unstable regimes.” With politicians making America less stable with each passing day, let’s hope this essential freedom is available in the future.

    Posted by Big Governement
    January 22, 2010
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    Pork Report, January 22, 2009: Bureaucrats Gone Wild Edition

    Bureaucrats gone wild! Taxpayers charged for international trysts, golf, skiing, and other government junkets

    Military officials bought thousands of dollars worth of alcohol, food and other amenities for congressional overseas junkets

    Delaware airport that “hardly ever sees a paying passenger” has received $12.3 million from the federal Airport Improvement Program for a runway construction project

    Tennessee library pays for Rock Band video game session and Monday Night Football with a $5,000 federal Community Building Through Video Games in Libraries grant

    Nearly five years after Hurricanes Katrina and Rita, Louisiana still looking for ways to spend one-third of the $13.4 billion leftover from the funds provided by the federal government for recovery efforts

    Defense appropriations bill signed by President Obama contained 97 pages listing nearly 1,000 congressional earmarks costing billions of dollars

    Posted by Big Governement
    January 22, 2010
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    New Questions Surface About Bernanke’s Role In AIG Bailout

    Sources on the Hill tell Big Government that the nomination of Ben Bernanke to remain Chairman of the Federal Reserve is in deep trouble.  A Senior Capitol Hill Staffer said to Big Government, “if [Senate Majority Leader] Reid does not file for cloture tonight, I don’t think they have the votes to confirm him.”  The Wall Street Journal thinks the vote will be “tight,” yet the White House is spinning that they have the votes.  Hill sources say that this nomination is trending in the wrong direction for the Obama Administration and many on the Hill are stunned by the news that, according to CNBC, Senator Barbara Boxer (D-CA) has announced her opposition to the nomination.  There is growing opposition to this nominee remaining in charge of the Federal Reserve for a second term.

    Senators have made public statements indicating that there may be non-public information that is hurting this nominee.  Senator Jim DeMint (R-SC) said that “the Fed continues to stonewall Congress and the public.”  Senator Jim Bunning (R-KY) referenced “ongoing examinations by Congress and the GAO of the Fed’s AIG bailout” and that there are “unpleasant facts for the Fed and Chairman Bernanke” that will come out after “full public disclosure of all information about the AIG bailout” that has only been shared with “select Congressional Committees and the GAO.”  Senator David Vitter (R-LA) said, “it is vitally important that Congress has the ability and time to adequately review the Federal Reserve’s bailout of AIG.  Although some of our offices have had time to review some of the documents, not all are available at this time and Congress should wait until GAO’s review before proceeding with his nomination vote.”

    It appears that there is non-public information about Bernanke’s role in the AIG bailout that is leading Senators to jump ship on his nomination.

    Posted by Big Governement
    January 22, 2010
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    Louisiana Legislature Floating Bill Making Obamacare Illegal in State

    Louisiana State Senator A.G. Crowe (R, Slidell) is introducing a bill for the 2010 legislative session in Baton Rouge that would make Obamacare illegal if it violates state laws, effectively making Obamacare null and void in the Pelican State.

    0005-copy

    Senator Crowe states that his bill “provides that no law or rule shall compel, directly or indirectly, any person, employer or health care provider to participate in any health care system or health insurance.”

    Crowe’s proposed Senate Bill (download .pdf file) begins as follows:

    HEALTH CARE. Prohibits state or local governmental coercion of any Louisiana employer, health care provider, or individual to compel participation in any health care system or health insurance plan.

    Crowe insists that Obamacare violates Article I, Section 8 of the Constitution and “is therefore unconstitutional.” He also feels that the president’s plans violates the 10th Amendment among others.

    In addition to the proposed legislation nullifying any possible federal healthcare laws, Senator Crowe has asked Buddy Caldwell, the State Attorney General, to determine if, in his opinion, Obamacare would violate any state laws, the Constitution, or would pass onerous unfunded mandates on the state. (download .pdf of letter)

    Senator Crowe has been involved in many conservative projects including the 2009 State sovereignty resolution, a Tenth Amendment policy project. Also in 2009 Crowe introduced a resolution proclaiming April as “Abortion Recovery Awareness Month” which was signed by Governor Jindal. Crowe also became a signatory to AFP’s No Climate Tax Pledge. (Crowe’s committee assignments and associations can be seen at Project Vote Smart)

    Senator Crowe is part of an increasing push by state lawmakers to affirm state sovereignty and Tenth Amendment rights, laws that will likely come before the U.S. Supreme court in short order once Obamacare is passed in D.C. According to Michael Boldin’s Tenth Amendment Center some 25 states have introduced state sovereignty resolutions or bills that would nullify federal laws that the state legislature feels violates their laws and those of the U.S. Constitution.

    (Hat tip LouisianaConservative.com)

    Posted by Big Governement
    January 22, 2010
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    Obamanomics: Crony Capitalism Disguised as Progressive Reforms

    In his new book Obamanomics: How Barack Obama is Bankrupting You and Enriching His Wall Street Friends, Corporate Lobbyists, and Union Bosses, Timothy P. Carney explains that Barack Obama’s “progressive” rhetoric masks good old-fashioned crony capitalism, in which the favored few and politcally well-connected get all sorts of benefits paid for with public dollars. Whether the area is Wall Street, health care reform, union organizing, or K Street lobbying, the same pattern is everywhere: using the government’s power to distribute goodies and rig markets.

    A columnist at the Washington Examiner and a non-partisan reporter, Carney also lays into the Republican Party for its massive contribution to the problem when it wielded power. Carney provides a game plan to take the country back and restore truly free markets that will benefit everyone.

    I interviewed Carney for Reason.tv in December; our talk is about 8.30 minutes long. For more videos, check out our YouTube channel here.

    Posted by Big Governement
    January 22, 2010
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    Obama’s Options: What Would Slick Willie Do?

    It is evening. Dinner is over, and I can see Bill Clinton sitting back at a table. In my fantasy, he has a mischievous smile on his face and a cigar in his right hand; his left hand lies on the knee of a scantily-clad lass less than half his age; and he is waiting in vain for the President to call.

    Obama

    Republicans, when on the spot, are apt to ask themselves, “What would Reagan do?” Democrats would be well advised, when in similar straits, to ponder what Bill Clinton would do. For whatever one might think of him — and in the last couple of years Democrats have been as likely to badmouth the man as Republicans — Slick Willie is a survivor who knows how to stage a comeback when nearly everyone thinks him not only down but permanently out. It was with such a figure in mind that H. L. Mencken wrote these immortal words: “The smarter the politician, the more things he believes and the less he believes any of them.”

    I have no doubt what advice Clinton would give Barack Obama if the latter were to make that call. He would tell him to jettison Rahm Emanuel and David Axelrod; to hire a David Gergen, and a Dick Morris; to leave Nancy Pelosi, Harry Reid, and their minions twisting in the wind; and to announce in his State of the Union Address that the era of big government is once again at an end.

    Clinton would instruct him to drop healthcare reform, fall silent on the global warming scam, abandon cap-and-trade, and forget about closing Guantanamo and trying terrorists in civil courts. He would advise him to cut a deal with the Republicans and with endangered Democrats from swing states and swing districts and join with them in passing tort reform, in trimming domestic spending, and in making permanent the tax cuts first introduced by the younger Bush.

    With an eye to encouraging employers to rehire those laid off, Clinton would urge Obama to join with that coalition to institute a temporary cut in the payroll taxes businesses pay the Social Security administration; and, if the economy did not quickly turn around, he would urge him to team up with John McCain, sing, “Bomb, bomb, bomb! Bomb, bomb Iran!” — and take out the nuclear program of Mahmoud Ahmadinejad.

    Slick Willie would, I think, tell him all of this, and he would be right. I doubt whether such a turnabout would do the Democrats in Congress any good ten months from now, but Clinton would not think that Obama should be concerned with the welfare of a party he himself always thought expendable. He would advise the President to worship the rising, not the setting sun; and he would remind him that, if Iran gets nuclear weapons and the economy is not in markedly better shape in November, 2012, his own goose will be cooked.

    I doubt, however, whether Barack Obama would seek or could take such advice. He is more likely to channel Jimmy Carter than the Arkansas Kid. In his heyday, Bill Clinton was an accomplished rogue. He bamboozled women from all walks of life, and he exercised his charms on everyone he met. Like many a practiced seducer, to accomplish the job that he had in mind, he could be just about anyone he needed to be. Jimmy Carter was more high-minded than this; and, once he got an idea into his head, he tended in a rigid fashion to stay on script.

    Barack Obama is, I think, even more self-righteous than Carter was. When he is on stage, there is always a whiff of fanaticism in the air. It is this that explains his almost complete lack of scruples with regard to the means he uses in pursuit of what he takes to be sacred ends. As a colleague of mine contends, he is really a preacher, and he is intent on doing us what he takes to be good whether we want it and consent or not.

    Obama may also be, as I have suggested elsewhere, a one-trick pony. He may be nothing more than an empty suit with a golden tongue. Arm him with a teleprompter, and he can be dynamite. Take it away, and he is no less apt to make a fool of himself than is his Vice-President.

    He is, moreover, pathetically vain. His natural instinct is to pose as a Messiah and to praise himself, trash his opponents, and blame everything untowards that happens on that bogus bogeyman George W. Bush. This posture was always insufferable and undignified, and it is now wearing thin, but it may be the only posture that Barack Obama knows how to assume.

    Thus, last Wednesday, in his interview on ABC with George Stephanopoulos, the President once again resorted to Bush-bashing with his claim that “the same thing that swept Scott Brown into office swept me into office. People are angry, and they’re frustrated. Not just because of what’s happened in the last year or two years, but what’s happened over the last eight years.”

    And he blamed himself and his administration only for a failure of communication: “we were so busy just getting stuff done and dealing with the immediate crises that were in front of us, that I think we lost some of that sense of speaking directly to the American people about what their core values are and why we have to make sure those institutions are matching up with those values.”

    If this means that he will respond to Scott Brown’s victory in Massachusetts simply by turning up the volume — and we should learn the upshot when the President delivers his State of the Union Address on Tuesday night — we are in for quite a ride.

    Here again, however, H. L. Mencken can come to our rescue. “Any defeat,” he wrote, “however trivial, may be fatal to a savior of the plain people. They never admire a Messiah with a bloody nose.”

    Posted by Big Governement
    January 20, 2010
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    Three Reasons Why Obama and The Dems Are in Big, Big Trouble.

    Over at Reason.com, my colleague Matt Welch and I list three basic reasons why the Dems are in big, big trouble. And one reason why they’re not:

    Martha Coakley’s resounding defeat in the Massachusetts Senate race is hardly the sort of anniversary gift President Barack Obama could have predicted. Yet there it was, wrapped in a bow and plopped on his doorstep like a flaming bag of dog poo to mark the end of his first year in office.

    obama-climate-legislation

    Among other things, Scott Brown’s upset victory means that Obama, who flew up to the Bay State to campaign for the deservedly doomed Coakley in the race’s twilight, is zero for three when it comes to high-profile two-minute drills for beloved causes (remember getting Chicago the Olympics and putting together a global carbon deal at the U.N climate conference in Copenhagen?).

    There are at least three basic reasons, plain as the nose on your face, that the Democrats and Obama are in trouble for the near future:

    1. Health care reform is not popular. An ABC News/Washington Post poll published on January 19 has 51 percent against current congressional plans and just 44 percent in favor, numbers that haven’t moved in a month. Other polls show even greater percentages oppose the plan, with all the trend lines over the past year working heavily against the Democrats.

    People fear the obvious: “Reform” that increases the government’s role in anything virtually guarantees steadily increasing costs, lower levels of services, and ballooning federal deficits. All the special-interest carve-outs to buy votes from wavering senators and pay down objections from Big Labor didn’t help either, especially on an issue that was not boiling over on the front-burner of voter concerns at a time of prolonged economic crisis.

    2. The stimulus and TARP bailouts are not popular. They never were, even back when Republicans were pushing them, and are getting less and less so as it becomes clear that such policies are at best ineffective and at worst horribly counterproductive. During his first year in office, reports Congressional Quarterly, Obama got what he wanted from Congress a record-setting 97 percent of time, so it’s not like he’s simply muddling through with a bad hand. Yet the president (and by extension, the Dems) are tanking when it comes to handling the economy, both in terms of results and job approval. An NBC/Wall Street Journal poll from January 10 shows just 43 percent approving of Obama’s economic policies, down from 56 percent a year ago.

    Simply put, nobody believes that weatherizing vacant homes in Detroit or keeping an already bloated public sector on permanent life support is going to restart the economy.

    3. The wars in Afghanistan and Iraq are not popular. Neither is Obama’s foreign policy more generally. According to Gallup, Obama’s reaction (or non-reaction) to the Christmas Day bomber had a marginally positive effect on the president’s marks for handling terrorism, but it remains a fact that his positions on Iraq and especially Afghanistan are at odds with most Americans. Whatever latent peacenik tendencies his supporters and detractors assumed he harbored, Obama has doubled, or even tripled, down in Afghanistan while following the Bush-Petraeus withdrawal plan in Iraq. This may qualify as hope, but it doesn’t count much as change. Especially since we’ve still got no real clear mission in Afghanistan, despite having been there for so long.

    Obama’s failure to define a coherent foreign policy is not his alone. At the end of the Cold War, the political class shrugged and almost immediately began to spend “the peace dividend” that came with a winding down of military spending as a percentage of GDP and the federal budget. Both George H.W. Bush and Bill Clinton cut relative military spending, as they should have. Where they, and Bush II and Obama so far, manifestly failed was in working to build a consensus of what U.S. foreign policy should be. We continue to pay for that failure in wasted dollars and, more damningly, wasted lives.

    All is not ashes for Obama and the Democrats, of course. After all, a new AP-GfK poll finds that 49 percent of Americans want the Democrats to maintain control of Congress (just 37 percent are pulling for the Republicans to take charge). The GOP had its run at the top and the results were nothing less than a disaster on just about every front.

    For those of us who don’t paint our faces for either the red or blue teams, the tragicomedy of American politics is that each party looks pretty freaking awesome when compared to its counterpart. As bad as Bush was, Obama may well be worse. As rotten as Harry Reid and Nancy Pelosi are, just remember Trent Lott and Dennis Hastert. Now reverse the party affiliations and repeat. In their hour of darkness, all the Dems need to recall is that they are running against Republicans. And vice versa. Independents–the only reliably growing voting bloc in an electorate long since fatigued by two-party politics–are swinging violently against Democrats after throwing the Republican bums out in 2008 and 2006.

    The hangover from the first year of Obama and the afterglow of Scott Brown’s stunning senatorial upset can teach the major parties some real lessons: First and foremost, listen to the voters, especially voters who are calling for smaller government despite very tough times. In a recent ABC News/Washington Post survey, 58 percent say they favor smaller government that provides fewer services rather than bigger government and more services (38 percent want that). Moving in that direction would indeed constitute change. For a change.

    The way back to voters’ hearts is not through boosting the size and scope of government (something else that Obama and the Dems simply filched from the Bush-era GOP) but by unmistakably trimming some sails. Health care reform, such as it is, should consist of giving individuals more options via a deregulated, non-job-based marketplace where costs are made more transparent rather than less so. It works everywhere else in the economy and will work in health care. Regarding government spending, it means freezes all around and reductions in staff sizes at all levels of government. It means starting (and winning) a debate over ridiculous public-sector retirement packages that bankrupt whole polities for the benefit of a privileged few. With foreign policy, it means thinking through a coherent set of principles that will guide our interactions, and not just our reactions, in the world, focusing on trade rather than aid and warfare. It means fighting terrorism with amply-funded intelligence services rather than the misbegotten occupation of whole troubled regions.

    The 21st century has so far been a tremendous disappointment to those of us who remember the end of the 20th. We know that today’s leaders are dogs, but here’s hoping they are not so old that they can’t learn a few new tricks. Especially since we are the ones that will continue paying for their mistakes.

    Posted by Big Governement
    January 20, 2010
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    George W. Bush Revisited

    He left office a year ago today. He has maintained a dignified silence in the last twelve months — even though his successor denounces him in almost every speech and acts as if he is still running against the man. I reviewed President Obama’s disastrous first year on Saturday. Today, I ask, “What, in retrospect, should we think of George W. Bush?”

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    The first thing that needs to be said is that he meant well. He is not a vindictive man, and he sought to put behind him the controversies and turmoil of the Clinton years. He thought that his focus would be domestic policy, but, as tends to happen, events intervened.

    Had it not been for 9/11, George W. Bush would probably have been a one-term President. He fell short of his adversary in the popular vote but won a majority in the electoral college. He was destined to be weak — but when disaster struck, he was in the line of fire, and he rose to the occasion.

    He made one crucially good choice when he ran for office. He chose Dick Cheney as his running mate, and he leaned on him for advice throughout his Presidency. With the support of Cheney, Bush chose to treat 9/11 as what it was: an act of war. He launched an assault on the regime of the Taliban in Afghanistan, which had supported Osama bin Laden and Al Q’aeda; he managed to drive them from power and install a government more friendly to the United States: and he set in motion a twilight war against Al Q’aeda that prevented further attacks within our borders. This was no mean accomplishment.

    Mindful of Saddam Hussein’s invasion of Kuwait in 1990, of his failure in the intervening years to honor the ceasefire negotiated in 1991, of the role he seems to have played in the first attempt to bring down the Twin Towers of the World Trade Center in New York, and of intelligence reports strongly suggesting that, contrary to the terms of that ceasefire, the man had maintained a clandestine program for the production of chemical and biological weapons of mass destruction, Bush turned his attention to Iraq, and there, too, his administration managed to overturn a tyrannical regime.

    It was in the aftermath that things began to go sour. Saddam was adept at bluffing, and he fooled everyone. He had maintained a skeleton operation, ready to produce such weapons, and he had played cat-and-mouse with the UN inspectors in such a fashion as to leave the impression that he had a great deal more to hide. The absence of a large-scale program made it possible for the left to mount a vicious assault on Bush’s integrity, and he never managed adequately to counter their claims.

    One cannot blame him for the invasion. Given the information available, it was the right thing to do. One can, however, blame the Bush administration for failing to make use of the information available to respond to their critics.

    When the United States took Baghdad, our soldiers captured a treasure trove of tapes, recording Iraqi cabinet meetings and numerous other meetings between Saddam Hussein and others — including foreign visitors and those within his inner circle. The Institute for Defense Analyses ran these tapes through a computer designed to identify passages in which certain key words for used, and from this they produced a series of classified reports — some of which documented in detail the connections between the Iraqi regime and various terrorist organizations. When officials at the institute sought permission to release these reports to the general public, they were repeatedly turned down.

    Bush and his advisors blundered in one other crucial regard. They were advised by military men with experience in Kosovo that it was crucial that they flood Iraq in the aftermath of the American invasion with military police capable of maintaining order. I am told that Jim Webb, now a Senator from Virginia, repeatedly proffered similar advice reflecting his experience in Vietnam. This they ignored. The army was, as always, reluctant to do anything other than re-fight World War II, and Bush himself appears to have had no idea what to do next. The first few months were squandered because of a lack of clarity with regard to postwar policy, and the administration ultimately opted to attempt an occupation on the cheap.

    The result — which was not only predictable but predicted — was a Sunni insurrection supportive of and supported by Al Q’aeda and something approaching a civil war. It was not until after the losses suffered by his party in the midterm elections of 2006 that Bush felt compelled to alter his strategy. And, then, against all the odds and in the teeth of fierce opposition within Congress, the armed forces, and our intelligence agencies, he not only managed to install in Iraq a group of officers prepared to implement a counter-insurgency strategy and eager to win; he also managed to fend off attempts to deny them support; and, sustained by his resolution, they brought the struggle to a successful conclusion.

    This was undoubtedly Bush’s finest hour, and it was a fine hour, indeed. In the long run, developments in Iraq may justify the blood we shed and the treasure we spent. As I argued in a recent post on Powerline, the era of Arab nationalism is coming to an ignominious end; the only seemingly viable alternative in the field is the Islamic revival fostered by the Muslim Brotherhood; and it, too, is bound to fail in the long run — for, while Islam may offer spiritual solace, it does not provide a plausible answer to the social, economic, and political problems that beset the Arab-speaking world. If, however, the Iraqi democracy survives and prospers, it will serve as another alternative, and there lies hope.

    What I have to say in this regard is not mere speculation. Across the border in Iran, the Iraqi achievement has already served as an inspiration. If our fellow Muslims in Iraq can be free, can openly debate anything and everything and decide matters in free and open elections, the Iranians tell themselves, there is no reason why we cannot do so ourselves; and now, as a consequence of the Iraqi example, the Iranians are willing to fight for their freedom. Had the Obama administration had the wit to give them wholehearted American backing last summer, we might not now be worrying that Mahmoud Ahmadinejad will soon have nuclear weapons at his disposal.

    There is a little to be said in praise of George W. Bush’s domestic policy, but only that. The tax cuts he initiated have undoubtedly been a help, and the stimulus checks sent out in his first term may have done some good at the time. But the easy-money policy followed by the Department of the Treasury and the Federal Reserve Board during his time in office was a disaster exceeded only by the policy followed by those bodies under Calvin Coolidge and Herbert Hoover. Bush never managed to find an adequate Secretary of the Treasury; he failed to put an end to mismanagement at Freddie Mac and Fannie Mae; and we have paid dearly for the fecklessness of his administration.

    In other areas, he also did damage. Though well-meaning, he was not well-instructed, and the advice he received was often not good. Many of those who served him are proud of his educational initiative (”No Child Left Behind”) and of the Prescription Drug Benefit he added to Medicare. They should be ashamed.

    Both programs were unprincipled efforts at triangulation on the model of the Clinton administration in the days when Dick Morris was riding high. The first opened the way for even more extensive federal regulation of institutions that should be regarded as resolutely local. The second paved the way for Obamacare.

    Like his father and like Herbert Hoover and Richard Nixon in an earlier time, George W. Bush was a business progressive, marching — if at a slower pace — to the same drummer as the Democratic Party and committed, as its adherents are, to the notion that “rational administration” from the center is the answer to every political question. With these initiatives, he contributed mightily, if unwittingly, to an expansion of the administrative state and to its propensity to subvert federalism and run roughshod over local autonomy.

    There was one other regard in which the younger Bush fell short, and it was, I believe, reprehensible in the extreme. When he was inaugurated, Bush — like every President before and since — swore to uphold and defend the Constitution. George W. Bush broke that oath; he betrayed this country; and he did so knowingly — when he signed McCain-Feingold.

    The first and most important of our liberties is political liberty. All of our rights depend upon its being sustained. It is essential that American elections be free and open. That is why we have the First Amendment to the Constitution. It is the most important item in the Bill of Rights. Those who framed this amendment were not concerned with artistic freedom and with freedom of expression; they took moral police and moral censorship at the local level for granted — and rightly so. They stipulated, however, that political speech be free and that the press be free as well, and they did so because they recognized that, in the absence of this freedom, if there was not free and open political debate, we would cease to be a self-governing people.

    McCain-Feingold is an attempt on the part of progressives to introduce “rational administration” into the messy realm of politics by empowering an appointed commission of putative experts — in no way accountable to the American people — to decide who can say what, when, and where in the political arena. George W. Bush understood this; he expressed his misgivings; then, he signed on. For this, he cannot be forgiven.

    I think that I know why he did it. If my suspicions are right, it was all part of a deal with John McCain, who, after being unjustly included in the Keating Five, set off on a futile, pathetic, and disgraceful quest to recover what he took to be his honor — in which he sought to eliminate the system that requires public officials to raise money for campaigns and was willing to sacrifice our liberty in the process. That deal, if a deal there was, guaranteed Senator McCain’s enthusiastic support for President Bush’s re-election bid. If this is what happened, however, if there really was such a deal, it was as corrupt a bargain as we in America have ever seen.

    It was President Bush’s hope and expectation that the Supreme Court would declare McCain-Feingold unconstitutional. Thanks to Citizens United v. Federal Election Commission, which is now before the Supreme Court, his hopes may — as Bradley A. Smith suggests in the current issue of National Affairs — soon be vindicated. But nothing can excuse Bush’s failure as President to do what he knew to be his constitutional duty and veto the bill.

    Barack Obama represents a threat to liberty, but he may not be as dangerous as certain of liberty’s putative defenders. What he stands for is clear enough, and, as Scott Brown and his supporters have now shown, we have the means with which to resist such an onslaught. Those, however, whom we take to be on our own side, those who nonetheless betray the cause of liberty and advance — even if at a slow pace — the growth of the administrative state are, I think, a greater threat — for, by taking us in, they make us complicit in liberty’s demise.

    It is vitally important that, in 2012, the Republicans nominate for the Presidency a principled defender of limited government and American constitutionalism. One more business progressive, one more rational manager who thinks that he can make the welfare state hum, and we are doomed.

    Posted by Big Governement
    January 19, 2010
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    A Victory Speech for Scott Brown

    I believe that Scott Brown will win the senatorial election being held in Massachusetts today and that he will do so not by an eyelash but by a landslide. We are about to witness the Massachusetts Miracle.

    I have three reasons for being so confident. First, the polls — with admirable consistency — suggest that he is ahead. Second, the Coakley campaign and the Democratic Party nationally have panicked. Coakley’s minions have sent out a flier accusing Scott Brown of wanting to turn rape victims away from Massachusetts hospitals, and the DC apparatus has sent in Bill Clinton and Barack Obama for last-minute campaigning. Both moves are likely to backfire.

    First, the claims in the flier are ridiculous and demonstrably false, and voters in Massachusetts have the wit to recognize that fact. Second, the bloom is off the rose. Clinton is a has-been, and Obama inspires little in the way of adulation these days. Their appearance in Massachusetts under these circumstances is a public confession that Martha Coakley is herself a loser. In special elections, turnout is everything. Scott Brown commands enthusiasm; no one — even within the Democratic establishment — has expressed any genuine excitement regarding his opponent.

    There is, then, if I am right, one crucial matter left to consider. This evening Scott Brown will be called upon at some point to address his supporters, and the whole nation will be watching. Here is what, I think, he should say:

    Ladies and Gentlemen, this is a turning point — not only in Massachusetts politics, but in the politics of the United States. We have won a great and unexpected victory against a well-entrenched political machine, and I want to thank all of you for the help that you have given my campaign. I know how hard you and many others not present in this room have worked, and I promise to do my best to justify the hopes that you have lodged in me.

    Tonight marks the end of a long, hard campaign. But it also marks a beginning. The people of Massachusetts have a way of speaking for the American people as a whole. They did so at the time of the Boston Tea Party; they did so again when a shot was heard around the world; and they did so today. For this election was a referendum on the conduct of the Obama administration in Washington. It was an anticipatory tremor — a harbinger of the electoral earthquake that is going to take place throughout the United States in November.

    President Obama was in Massachusetts on Sunday campaigning for my opponent. Your rejection of her candidacy was, as he well knows, a rebuke of his administration. What you have said is simple and straightforward, and I will do my best to put it into words.

    First, Mr. President, Speaker Pelosi, Majority Leader Reid, there is this: You promised us transparency in government, and you have done the opposite. We in Massachusetts demand that you deliver what you promised. No more deals behind closed doors. No more corrupt bargains. No Gator Aid; No Louisiana Purchase; No Cornhusker Kickback; no special deal for union members. What we want is a fair deal for all Americans!

    Second, Mr. President, Speaker Pelosi, Majority Leader Reid, there is this: We do not want healthcare rationing; we do not want to gut Medicare; and we do not want a middle-class tax increase under any disguise.

    Please understand, it is not our view that the existing healthcare system is perfect. We believe that costs could be reduced and access encouraged by four simple expedients.

    First, we urge the adoption of tort reform — which would result in a reduction in the costs of malpractice insurance and an elimination of the pressures on physicians to order unnecessary medical tests.

    Second, we urge a repeal of the measures which consign health insurance to state regulation. We want a national market for health insurance — we want to increase competition and thereby lower costs.

    Third, we urge that hospitals, clinics, and physicians be required to post their prices — so that consumers can shop around.

    Fourth, we urge that legislation be passed eliminating the connection between employment and the formation of pools for the purchase of health insurance so that voluntary associations — churches, clubs, professional societies, unions, and other comparable organizations — can form pools to negotiate discounts and health insurance arrangements on behalf of their members.

    Mr. President, when you were inaugurated, you promised to “roll back the specter of a warming planet” and “restore science to its rightful place.” This past Fall, we learned that what many have long suspected is sadly true: that the work done by the Climatic Research Unit at the University of East Anglia, which formed the basis for the four reports issued by the United Nations’ Intergovernmental Panel on Climate Change, is a fraud — that the data was doctored, that the computer simulation was a scam, and that systematic efforts were made by prominent climate scientists to corrupt the peer-review process and suppress legitimate criticism — all for the purpose of imposing a socialist strait jacket on the world economy.

    We remind you, Mr. President, that a specter is “an apparition inspiring dread” and that one of the principal functions of science is to dispel illusions of this very sort. We demand that you now be true to your word; that you act to “roll back the specter of a warming planet” and “restore science to its rightful place” by sponsoring an impartial reconsideration of the evidence both for and against man-made climate change.

    Finally — and most important — Mr. President, we remind you that this country faces an economic crisis and that a great many Americans are unemployed and underemployed.

    It is not our opinion that a massive expansion in the federal bureaucracy is conducive to a recovery of the private sector. Nor do we do believe that a massive increase in the national debt is favorable to the long-term well-being of the American people. We call upon you to balance the federal budget by reducing dramatically the size of that bureaucracy and by eliminating unnecessary programs reflective of corrupt bargains negotiated in the past.

    We also call upon you to make the tax cuts introduced by President Bush permanent — so that Americans have a compelling reason to work long hours and risk their savings by investing them in new ventures likely to produce jobs.

    We have one more thing to say. Not long after the spontaneous formation of the Tea-Party Movement, Anderson Cooper of CNN disgraced himself by applying to those who joined that movement the obscene phrase “tea-baggers.” Since that time, Mr. President, you have demeaned your office and others, such as Senator Schumer of New York, have demeaned theirs by deploying the same vile phrase. We call upon you to stop this practice, to apologize to the American people for your misconduct, and to conduct debates concerning public policy in a civil fashion from now on.

    If, in his victory speech, Scott Brown were to say something along these lines, I am confident that it would electrify the nation, put both the Obama administration and the Democratic Party on the defensive, and set the Republican Party on the right path. The country is beginning to mobilize; the first Tuesday in November is just a few months away; and now is the time for the campaign to begin.

    Posted by Big Governement
    January 19, 2010
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    The American People Reject Big Government

    According to a Washington Post story, Obama wants to be the anti-Reagan, a President who permanently changes the American people’s attitude about big government. Obama’s efforts to make statism popular, however, are not exactly working out as he hoped.

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    According to a new Washington Post-ABC poll, the American people have become much more libertarian when asked if that want a bigger government with more services or a smaller government with fewer services. But this is just part of the story. As David Boaz points out, more accurate polling data, which mentions that bigger government also means higher taxes, reveals that support for small government becomes even more pronounced. Here’s an excerpt from the Post story:

    Could he restore confidence in government, even as he was proposing the biggest federal intervention in the domestic economy in a generation? …As Obama marks the first anniversary of his inauguration on Wednesday, that question remains one of the most politically charged of his presidency — and central to the politics of this election year — and will hinge on how Americans judge Obama and his policies. Will the public conclude that his policies worked, however much they may cost and however much they may entail more government intervention in the economy? Or will they regard his agenda as intrusive and ineffective big government? What steps may Obama take to alleviate public discontent over these first-year decisions? …Obama receives mixed reviews for his first-year performance, according to a new Washington Post-ABC News poll. His approval rating stands at 53 percent, with 44 percent disapproving. Among independents, 49 percent approve, the lowest of any of his recent predecessors at this point in their presidencies. …The poll also shows how much ground Obama has lost during his first year of trying to convince the public that more government is the answer to the country’s problems. By 58 percent to 38 percent, Americans said they prefer smaller government and fewer services to larger government with more services. Since he won the Democratic nomination in June 2008, the margin between those favoring smaller over larger government has moved in Post-ABC polls from five points to 20 points.

    Posted by Big Governement
    January 19, 2010
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    Rep. Schakowsky’s ShoreBank Bailout

    Why is Rep. Jan Schakowsky trying to use Illinois taxpayers’ money to bail out ShoreBank?

    Rep. Schakowsky and fellow Illinois Democrat, Sen. Dick Durbin, have pressured state officials to meet with the bank to discuss a $100 million bailout.

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    This would apparently be the first bank bailout by a state government–not just in Illinois, but in any state.

    The reason ShoreBank is in trouble is quite simple: it made too many bad real estate loans, and fell below the capital requirements required by regulatory authorities.

    Its political supporters point to its mission of helping borrowers in low-income communities. But ShoreBank is hardly the only struggling bank to serve those customers.

    Why is Rep. Schakowsky only helping ShoreBank? After all, when the Bank of Lincolnwood failed last year, Rep. Schakowsky did not save it–and that bank, unlike ShoreBank, was in her own district.

    The answer may lie in the history of campaign contributions by ShoreBank executives and employees.

    Federal Election Commission records reveal that ShoreBank executives and employees gave thousands of dollars to Rep. Schakowsky and Sen. Durbin.

    They also gave heavily to Barack Obama’s presidential campaign. Indeed, Crain’s Chicago Business reports that “President Obama and the first lady are former neighbors of ShoreBank executives.”

    Other ShoreBank-related contributions include Democrats across the country and left-wing organizations such as MoveOn.org.

    The ShoreBank bailout would seem to be more of the same Blagojevich-style, pay-to-play politics that Illinois has suffered under for too long.

    The people of Illinois are tired of bailouts. We know that the $700 billion TARP bailout–which both Rep. Schakowsky and Sen. Durbin voted for–was a failure.

    We know that Illinois–which cannot even afford to pay state pensions–cannot afford to start bailing out banks.

    And we are tired of seeing our elected representatives using our tax dollars to help their cronies and contributors.

    As usual, when they are caught, Rep. Schakowsky and her colleagues will point to their supposedly good intentions, and those of ShoreBank.

    But this bailout is simply wrong. It is all about the greed of the politicians, not the needs of the people.

    It will reward ShoreBank for making bad financial decisions, rather than encouraging responsible behavior to protect low-income customers and communities.

    Just as we need to get rid of the policy of “too big to fail,” we need to stop the policy of “too connected to collapse.”

    Posted by Big Governement
    January 16, 2010
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    Obama’s First Year

    Wednesday will mark the first anniversary of the presidential inauguration of Barack Obama — who began his Presidency, as nearly all new first-term Presidents do, high in the polls. At that time, Obama’s approval ratings were, in fact, in the stratosphere. In the last twelve months, however, they have fallen further and faster than those of any President since polling began; and, and, as developments in Massachusetts suggest, his party is now in danger of suffering in November an historic defeat — which is likely to rival its fate in 1938, 1966, and 1994 if the Democrats do not, as I believe they may, do even worse. In a poll released on Thursday, the National Journal reports that half of the adults sampled responded that, if new Presidential elections were held right now, they would vote against Barack Obama, and less than a quarter of those questioned indicated that they would vote to re-elect the President. It is an appropriate time in which to pose this question: Why have Obama and his supporters fallen so far and so fast?

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    We must, I think, begin before the beginning. The Obama campaign was predicated on a fraud. With a skill that was breathtaking, Barack Obama managed during that campaign to signal to the left within the Democratic Party with a wink and a nod that he was their man and that he meant business — that he really intended to “transform” America. To those in the middle and on the right who are ashamed of the nation’s historic sins in matters of race, he offered absolution, and he promised that the penance that they would have to perform after leaving the confessional would not be harsh. He was not, he said, a tax-and-spend liberal.

    I was not taken in. Late in 2008, after reviewing the page proofs of Soft Despotism, Democracy’s Drift, I persuaded my editor to allow me to add the following to the book:

    Once again, as in the 1920s, rational administration has failed us. As on that other occasion, the Federal Reserve Board and the Department of the Treasury pursued over an extended period under more than one administration an easy-money policy bound in the end to give rise to “irrational exuberance” in the markets and to a bubble followed by a catastrophic decline in prices and a collapse of the credit markets. And, to make matters worse, we responded to this set of circumstances precisely as we did on that earlier occasion — by electing a president and choosing a Congress intent on dramatically increasing the scale and scope of the administrative state.

    Our new masters have ample room for maneuver. They have it in their power to deepen the economic crisis and worsen our distress in the manner of Hoover and the younger Roosevelt. By instituting a second New Deal, as they would very much like to do — by sharply raising taxes on fossil fuels, dividends, and capital gains; by targeting the earnings of the well-to-do; by confiscating our 401(k)s and IRAs and substituting government retirement accounts at fixed interest; by pursuing protectionism, expanding the regime of programmatic rights, and forcing workers into labor unions — they can discourage investment, curb entrepreneurship, reduce foreign trade, and decisively slow economic growth, or even bring it to a lasting halt, while offering to those consigned to the dole thereby a dependence upon the generosity and good will of an all-encompassing state. Just how ambitious and ruthless they will prove to be on this occasion, just how far in the next few years they intend to hustle us down the path we tread, remains as yet undetermined.

    The only thing that is crystal clear is the direction of our drift and the nature of the threat we face. Walter Lippmann’s warning is as apt today as when he issued it in 1937 — for “the premises of authoritarian collectivism” are once again, as they were then, “the working beliefs, the self-evident assumptions, the unquestioned axioms” behind “nearly every effort which lays claim to being enlightened, humane, and progressive,” and hardly anyone today “is taken seriously as a statesman or a theorist who does not come forward with proposals to magnify the power of public officials and to extend and multiply their intervention in human affairs.” Like the younger Roosevelt, our new leader poses as a secular Messiah; his minions believe, as did the progressives of an earlier time, that “there has come into the world” in recent times “some new element which makes it necessary for us to undo the work of emancipation” achieved by our forebears and “to retrace the steps men have taken to limit the power of rulers”; and in the ranks of our compatriots they will find many prepared to sacrifice self-reliance and personal independence for a promise of security no government can keep. The hour is, indeed, late.

    Of course, many were fooled — some of them putatively on the right. Christopher Buckley and David Brooks come first to mind, but they were by no means alone. Many of the libertarians whom I have encountered in the last year fell prey to Bush-Derangement-Syndrome and, in their fury, stayed home on election day, voted for a third party, or even supported Obama. Nothing, they thought, could be worse than John McCain.

    To be fair, they could have been right. On the domestic front, McCain seemed feckless, and Obama could have governed from the center. He could have put off his radical agenda. He could have concentrated, as Franklin Roosevelt did in his first term, on turning the economy around. He could have pledged to extend the tax cuts passed under George W. Bush. He could have introduced a temporary cut in the portion of the payroll tax paid by employers to make it worth their while to hold onto veteran employees with valuable knowledge and skills through the economic storm.

    The Republicans would have played ball. In the early months of the Obama administration, they were in a sorry state, and they were perfectly willing to get on the bandwagon. In early May, Jeb Bush met with Mitt Romney and House Republic Whip Eric Cantor and emerged from the meeting to urge that Republicans put Reagan behind them. “You can’t,” he explained, “beat something with nothing, and the other side has something. I don’t like it, but they have it, and we have to be respectful and mindful of that. So our ideas need to be forward looking and relevant. I felt like there was a lot of nostalgia and the good old days in the [Republican] messaging. I mean, it’s great, but it doesn’t draw people toward your cause.”

    Had Obama moved to the center, had he made good on his promises regarding bipartisan government, the Republicans would have provided him with cover. Instead, however, he adopted the strategy forecast in his prospective chief-of-staff Rahm Emanuel’s notorious remark in November, 2008 that “you never want a serious crisis to go to waste.”

    To make matters worse, the new President chose to leave the details to Nancy Pelosi and Harry Reid — who crafted a so-called “stimulus” bill designed to loot the country for the benefit of constituencies associated with the Democratic Party; and, while employees in the private sector were laid off or relegated to part-time work, the federal government hired and hired, gave massive salary increases to those already on the payroll, and even set aside two billion dollars for “community-stabilization” organizations — which is to say, for the criminal conspiracy called ACORN.

    No less on point, Pelosi and Reid gave way to resentment and sought revenge on their Republican colleagues. In the “stimulus” bill, there were numerous earmarks for Democrats but few, if any, for Republicans. At the time, it would have been easy to secure a modicum of Republican support. Hopeless and hapless, the Republicans were virtually begging to be bought. In November, 2008, they had seen what they took to be the future, and many of them wanted to be a part of it. But Pelosi and Reid denied them the opportunity, forced them into opposition, and guaranteed that those within their ranks who were inclined to articulate a principled critique of the bill would get a hearing nationwide.

    No one anticipated the Tea-Party insurrection. But they should have. It is, after all, one thing to steal and enrich one’s supporters. That is, sad to say, an age-old Congressional practice. It is, however, another thing to do so on so massive a scale and in so transparent a fashion at a time when so many are facing exceedingly hard times. It did not help that President Obama was inclined to appoint tax-evaders to high office and that the chairman of the Ways and Means Committee in the House and the chairman of the Banking Committee in the Senate were known to be crooks. The American people can be fooled but not by skulduggery as obvious as what we have seen.

    Obama’s economic advisors can hardly have encouraged him to believe that shoveling money into the hands of his supporters would actually cause the economy to rebound. Christina Romer and Larry Summers have track records as academic economists that strongly suggest that they understand the defects of Keynesian economics. They may, however, have predicted that there would be a sharp economic rebound in any case (as there usually is in such circumstances), and the President may have calculated that he could use such a rebound as a cover for an attempt to “spread the wealth around.” In fact, however, on the job front, thanks to the uncertainnty that he has created, things have gotten markedly worse, and the “stimulus” bill is widely recognized as what it is: grand larceny.

    The Tea-Party insurrection nonetheless caught the Republican Party flat-footed; and, even after the initial eruption, the Republicans were slow to recognize its importance. Thus, when the Obama administration began agitating for what the Democrats call “healthcare reform,” there were Republicans eager to get on board. It took the explosions at the town halls in August to get Charles Grassley, Olympia Snowe, Susan Collins, and the like to recognize that it was not Obama and the Democrats that they had most to fear.

    Everything that has happened since then regarding the healthcare bill has reinforced the suspicions directed at the Obama administration. As the polling data makes clear, the American people do not want healthcare rationing; they do not want to gut Medicare; they do not want a middle-class tax increase under any disguise; and they find the special deals — Gatorade, the Cornhusker Kickback, and the like — cut by particular Senators and Congressmen reprehensible. If, as is reported, President Obama, Speaker Pelosi, and Senator Reid have agreed to exempt union members and others in favored categories from the 40% excise tax on high-priced health insurance while imposing it on those outside constituencies favored by the Democrats and if, at the insistence of the unions, they have also recast the bill as a tool for driving non-unionized construction firms out of business, there will be additional hell to pay.

    I could go on and on. Remember the auto-industry bailout and the fashion in which Barack Obama defrauded the bondholders to the advantage of the United Auto Workers? Have you heard about the manner in which Tim Geithner set up an opportunity for insider trading on the part of the fine folks at Goldman Sachs?

    The Democrats have played every trick in the book, and they have done it in broad daylight. If Scott Brown is elected to the Senate in Massachusetts on Tuesday, as I think he will be, and if, under these circumstances, the Massachusetts Secretary of State delays certifying the election so that Paul Kirk can once again vote for cloture in the Senate on the healthcare bill, as is apparently the Democrats’ contingency plan, it would be par for the course. After all, the Democrats in the Massachusetts legislature changed the law and put off the special election so that Paul Kirk could be appointed in the first place.

    We live in a remarkable time. I cannot think of any moment in American history in which a President and a political party have squandered an opportunity as promising as the one afforded Barack Obama in November, 2008. Had he chosen a more moderate course, had he reined in the radicals in control in the House and the Senate, had he focused on the economy, had he insisted on transparency, had he ruled out corrupt bargains, had he scrupulously kept the promises he made during the campaign, he would have reinforced the sense of those who voted for him that he was a man who could be trusted; and later, relying on their confidence in him, he might have accomplished much of what he wanted.

    As things stand, Obama has given the Republicans the opportunity of a lifetime. It is as if he, Pelosi, Reid, and their associates conspired to convince the American people that the Democratic Party is “a small group” of women and men intent on concentrating “into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor – other people’s lives.”

    These are words that Franklin Delano Roosevelt deployed in 1936 against those whom he called “economic royalists.” When the American people are persuaded that such a claim is true, as they have been on the eve of every electoral realignment in our history, they turn on the putative perpetrators with a vengeance.

    Mark my words. In November, we are going to witness an electoral earthquake. What is slated to happen in Massachusetts on Tuesday is merely an anticipatory tremor. I just hope that the Republicans have the wit to capitalize on this opportunity.

    Posted by Big Governement
    January 16, 2010
    Leave a Comment

    Obama’s First Year

    Wednesday will mark the first anniversary of the presidential inauguration of Barack Obama — who began his Presidency, as nearly all new first-term Presidents do, high in the polls. At that time, Obama’s approval ratings were, in fact, in the stratosphere. In the last twelve months, however, they have fallen further and faster than those of any President since polling began; and, and, as developments in Massachusetts suggest, his party is now in danger of suffering in November an historic defeat — which is likely to rival its fate in 1938, 1966, and 1994 if the Democrats do not, as I believe they may, do even worse. In a poll released on Thursday, the National Journal reports that half of the adults sampled responded that, if new Presidential elections were held right now, they would vote against Barack Obama, and less than a quarter of those questioned indicated that they would vote to re-elect the President. It is an appropriate time in which to pose this question: Why have Obama and his supporters fallen so far and so fast?

    59093

    We must, I think, begin before the beginning. The Obama campaign was predicated on a fraud. With a skill that was breathtaking, Barack Obama managed during that campaign to signal to the left within the Democratic Party with a wink and a nod that he was their man and that he meant business — that he really intended to “transform” America. To those in the middle and on the right who are ashamed of the nation’s historic sins in matters of race, he offered absolution, and he promised that the penance that they would have to perform after leaving the confessional would not be harsh. He was not, he said, a tax-and-spend liberal.

    I was not taken in. Late in 2008, after reviewing the page proofs of Soft Despotism, Democracy’s Drift, I persuaded my editor to allow me to add the following to the book:

    Once again, as in the 1920s, rational administration has failed us. As on that other occasion, the Federal Reserve Board and the Department of the Treasury pursued over an extended period under more than one administration an easy-money policy bound in the end to give rise to “irrational exuberance” in the markets and to a bubble followed by a catastrophic decline in prices and a collapse of the credit markets. And, to make matters worse, we responded to this set of circumstances precisely as we did on that earlier occasion — by electing a president and choosing a Congress intent on dramatically increasing the scale and scope of the administrative state.

    Our new masters have ample room for maneuver. They have it in their power to deepen the economic crisis and worsen our distress in the manner of Hoover and the younger Roosevelt. By instituting a second New Deal, as they would very much like to do — by sharply raising taxes on fossil fuels, dividends, and capital gains; by targeting the earnings of the well-to-do; by confiscating our 401(k)s and IRAs and substituting government retirement accounts at fixed interest; by pursuing protectionism, expanding the regime of programmatic rights, and forcing workers into labor unions — they can discourage investment, curb entrepreneurship, reduce foreign trade, and decisively slow economic growth, or even bring it to a lasting halt, while offering to those consigned to the dole thereby a dependence upon the generosity and good will of an all-encompassing state. Just how ambitious and ruthless they will prove to be on this occasion, just how far in the next few years they intend to hustle us down the path we tread, remains as yet undetermined.

    The only thing that is crystal clear is the direction of our drift and the nature of the threat we face. Walter Lippmann’s warning is as apt today as when he issued it in 1937 — for “the premises of authoritarian collectivism” are once again, as they were then, “the working beliefs, the self-evident assumptions, the unquestioned axioms” behind “nearly every effort which lays claim to being enlightened, humane, and progressive,” and hardly anyone today “is taken seriously as a statesman or a theorist who does not come forward with proposals to magnify the power of public officials and to extend and multiply their intervention in human affairs.” Like the younger Roosevelt, our new leader poses as a secular Messiah; his minions believe, as did the progressives of an earlier time, that “there has come into the world” in recent times “some new element which makes it necessary for us to undo the work of emancipation” achieved by our forebears and “to retrace the steps men have taken to limit the power of rulers”; and in the ranks of our compatriots they will find many prepared to sacrifice self-reliance and personal independence for a promise of security no government can keep. The hour is, indeed, late.

    Of course, many were fooled — some of them putatively on the right. Christopher Buckley and David Brooks come first to mind, but they were by no means alone. Many of the libertarians whom I have encountered in the last year fell prey to Bush-Derangement-Syndrome and, in their fury, stayed home on election day, voted for a third party, or even supported Obama. Nothing, they thought, could be worse than John McCain.

    To be fair, they could have been right. On the domestic front, McCain seemed feckless, and Obama could have governed from the center. He could have put off his radical agenda. He could have concentrated, as Franklin Roosevelt did in his first term, on turning the economy around. He could have pledged to extend the tax cuts passed under George W. Bush. He could have introduced a temporary cut in the portion of the payroll tax paid by employers to make it worth their while to hold onto veteran employees with valuable knowledge and skills through the economic storm.

    The Republicans would have played ball. In the early months of the Obama administration, they were in a sorry state, and they were perfectly willing to get on the bandwagon. In early May, Jeb Bush met with Mitt Romney and House Republic Whip Eric Cantor and emerged from the meeting to urge that Republicans put Reagan behind them. “You can’t,” he explained, “beat something with nothing, and the other side has something. I don’t like it, but they have it, and we have to be respectful and mindful of that. So our ideas need to be forward looking and relevant. I felt like there was a lot of nostalgia and the good old days in the [Republican] messaging. I mean, it’s great, but it doesn’t draw people toward your cause.”

    Had Obama moved to the center, had he made good on his promises regarding bipartisan government, the Republicans would have provided him with cover. Instead, however, he adopted the strategy forecast in his prospective chief-of-staff Rahm Emanuel’s notorious remark in November, 2008 that “you never want a serious crisis to go to waste.”

    To make matters worse, the new President chose to leave the details to Nancy Pelosi and Harry Reid — who crafted a so-called “stimulus” bill designed to loot the country for the benefit of constituencies associated with the Democratic Party; and, while employees in the private sector were laid off or relegated to part-time work, the federal government hired and hired, gave massive salary increases to those already on the payroll, and even set aside two billion dollars for “community-stabilization” organizations — which is to say, for the criminal conspiracy called ACORN.

    No less on point, Pelosi and Reid gave way to resentment and sought revenge on their Republican colleagues. In the “stimulus” bill, there were numerous earmarks for Democrats but few, if any, for Republicans. At the time, it would have been easy to secure a modicum of Republican support. Hopeless and hapless, the Republicans were virtually begging to be bought. In November, 2008, they had seen what they took to be the future, and many of them wanted to be a part of it. But Pelosi and Reid denied them the opportunity, forced them into opposition, and guaranteed that those within their ranks who were inclined to articulate a principled critique of the bill would get a hearing nationwide.

    No one anticipated the Tea-Party insurrection. But they should have. It is, after all, one thing to steal and enrich one’s supporters. That is, sad to say, an age-old Congressional practice. It is, however, another thing to do so on so massive a scale and in so transparent a fashion at a time when so many are facing exceedingly hard times. It did not help that President Obama was inclined to appoint tax-evaders to high office and that the chairman of the Ways and Means Committee in the House and the chairman of the Banking Committee in the Senate were known to be crooks. The American people can be fooled but not by skulduggery as obvious as what we have seen.

    Obama’s economic advisors can hardly have encouraged him to believe that shoveling money into the hands of his supporters would actually cause the economy to rebound. Christina Romer and Larry Summers have track records as academic economists that strongly suggest that they understand the defects of Keynesian economics. They may, however, have predicted that there would be a sharp economic rebound in any case (as there usually is in such circumstances), and the President may have calculated that he could use such a rebound as a cover for an attempt to “spread the wealth around.” In fact, however, on the job front, thanks to the uncertainnty that he has created, things have gotten markedly worse, and the “stimulus” bill is widely recognized as what it is: grand larceny.

    The Tea-Party insurrection nonetheless caught the Republican Party flat-footed; and, even after the initial eruption, the Republicans were slow to recognize its importance. Thus, when the Obama administration began agitating for what the Democrats call “healthcare reform,” there were Republicans eager to get on board. It took the explosions at the town halls in August to get Charles Grassley, Olympia Snowe, Susan Collins, and the like to recognize that it was not Obama and the Democrats that they had most to fear.

    Everything that has happened since then regarding the healthcare bill has reinforced the suspicions directed at the Obama administration. As the polling data makes clear, the American people do not want healthcare rationing; they do not want to gut Medicare; they do not want a middle-class tax increase under any disguise; and they find the special deals — Gatorade, the Cornhusker Kickback, and the like — cut by particular Senators and Congressmen reprehensible. If, as is reported, President Obama, Speaker Pelosi, and Senator Reid have agreed to exempt union members and others in favored categories from the 40% excise tax on high-priced health insurance while imposing it on those outside constituencies favored by the Democrats and if, at the insistence of the unions, they have also recast the bill as a tool for driving non-unionized construction firms out of business, there will be additional hell to pay.

    I could go on and on. Remember the auto-industry bailout and the fashion in which Barack Obama defrauded the bondholders to the advantage of the United Auto Workers? Have you heard about the manner in which Tim Geithner set up an opportunity for insider trading on the part of the fine folks at Goldman Sachs?

    The Democrats have played every trick in the book, and they have done it in broad daylight. If Scott Brown is elected to the Senate in Massachusetts on Tuesday, as I think he will be, and if, under these circumstances, the Massachusetts Secretary of State delays certifying the election so that Paul Kirk can once again vote for cloture in the Senate on the healthcare bill, as is apparently the Democrats’ contingency plan, it would be par for the course. After all, the Democrats in the Massachusetts legislature changed the law and put off the special election so that Paul Kirk could be appointed in the first place.

    We live in a remarkable time. I cannot think of any moment in American history in which a President and a political party have squandered an opportunity as promising as the one afforded Barack Obama in November, 2008. Had he chosen a more moderate course, had he reined in the radicals in control in the House and the Senate, had he focused on the economy, had he insisted on transparency, had he ruled out corrupt bargains, had he scrupulously kept the promises he made during the campaign, he would have reinforced the sense of those who voted for him that he was a man who could be trusted; and later, relying on their confidence in him, he might have accomplished much of what he wanted.

    As things stand, Obama has given the Republicans the opportunity of a lifetime. It is as if he, Pelosi, Reid, and their associates conspired to convince the American people that the Democratic Party is “a small group” of women and men intent on concentrating “into their own hands an almost complete control over other people’s property, other people’s money, other people’s labor – other people’s lives.”

    These are words that Franklin Delano Roosevelt deployed in 1936 against those whom he called “economic royalists.” When the American people are persuaded that such a claim is true, as they have been on the eve of every electoral realignment in our history, they turn on the putative perpetrators with a vengeance.

    Mark my words. In November, we are going to witness an electoral earthquake. What is slated to happen in Massachusetts on Tuesday is merely an anticipatory tremor. I just hope that the Republicans have the wit to capitalize on this opportunity.

    Posted by Big Governement
    January 15, 2010
    Leave a Comment

    Texas Is Right to Quit the ‘Race for the Top’ Education Program

    As if bailing out banks and the auto industry wasn’t enough, now Washington, D.C. wants more control over schools.

    education

    In order for a state to apply for its share of President Obama’s Race to the Top stimulus funds, it will have to explain how it will use those federal dollars on a list of suggested education reforms.  This week, Texas Gov. Rick Perry said “thanks but no thanks.”

    This was the proper decision for Texas, and here’s why:

    • Education has historically been a state issue, with power in Texas delegated to the Texas Legislature and the State Board of Education. Texas lawmakers control funding and school requirements, and the State Board makes decisions about curriculum.  All of these are elected positions directly accountable to the voters at least once every four years.

    • States such as Texas may have to spend state funds to access the federal dollars. The Texas Education Agency estimates that Texas will have to spend $3 billion just to have the chance to access, at most, $750 million.
    • The federal funding will dry up. As we are seeing with other stimulus funds, states and local school districts would need to find funding for the reforms after the federal money goes away.
    • What if the “reform” could be a step backwards for quality of a state’s education system?

    It seems that if Texas continues to hold out on moving towards a national curriculum, Texas will lose points on its application for Race to the Top funds. Why should a state that has steadily improved the rigor of its own K-12 curriculum be forced to adopt national curriculum standards that have not been developed and could wind up being weaker than what we already have in place?

    Since adding more math and science course requirements and college-readiness components, Texas is in the process of updating its textbooks and designing state end-of-course exams that align to the new curriculum. Yet if Texas were to scrap its own curriculum in favor a national curriculum, Texas would have to spend an estimated $3 billion – $2 billion to purchase new textbooks and $1 billion to redesign our state tests.

    Education is a state issue, and the federal government has no business dictating academic standards or curriculum to states. Washington, please leave Texas alone.

    Posted by Big Governement
    January 14, 2010
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    Hide the Job Decline: $500k in Stimulus Funds to ClimateGate Professor

    The American Reinvestment and Recovery Act (the Stimulus Bill) has been such an epic failure, that even the mainstream media has started to notice. The White House has tacitly acknowledged this and recently announced that it would no longer ‘count’ jobs ‘created or saved’ by the Stimulus. The basic problem is that the bulk of the spending went to programs or projects that have nothing to do with economic growth.

    091212_michael_mann

    The latest example of this is a $500,000 grant to Michael Mann, Professor at Penn State University and unintended c0-star of the ClimateGate e-mail scandal. The leaked e-mails revealed collaboration among scientists to stifle dissenting views on the extent of man-made global warming.

    Mann is also the creator of the “Hockey Stick” graph, which purported to show a sharp increase in recent temperatures. That work has been thoroughly discredited by researcher Stephen McIntyre. Yet, in June 2009, the National Science Foundation awarded Mann a three-year $500,000 to further study the climate’s response to human activity. According to the grant award:

    The broader impacts involve supporting postdoctoral scholars and graduate students and contributing to the understanding of abrupt climate change.

    So, the research is supposed to give us a better ‘understanding of abrupt climate change.’ Mind you, the research isn’t to determine whether there is abrupt climate change occurring. Given that Mann is known for using “tricks” to finesse his data, the National Science Foundation will not be pleased with the results.

    Actually, this particular grant is special, even by the low-bar set by other spending. Most of the Stimulus funds are simply wasted with no real impact on the overall economy. However, Mann’s “research” will presumably be used to further justify cap-and-trade legislation or other draconian regulatory actions. Either of these will have a very negative impact on the economy, retarding growth for years to come.

    We may be paying for this $500,000 for a very long time.

    Posted by Big Governement
    January 13, 2010
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    America’s New Year’s Unemployment Hangover

    One cannot drink oneself into sobriety. Yet that is precisely what Congressional Democrats and the Obama Administration have attempted with our economy for the past year with predictable and painful results.

    EmploymentRecessionsDec

    Unemployment continues to stand at an official 10% for the third month in a row, the worst joblessness in 27 years.  The real unemployment rate is far worse.  Included in the December economic figures was a shocker – the percentage of adult men who are working has fallen to the lowest level in recorded U.S. history at just 80%.  That means that one in five men in this country between 18 and 54 are neither working nor claiming unemployment.  They have fallen completely out of the workforce.

    That helps explain why December’s unemployment rate remained at November’s 10% rate in spite of an additional 85,000 Americans losing their jobs.  At the same time the new jobless claims were added, many of the previously unemployed were simply removed from the workforce numbers altogether.

    Economists estimate our true jobless rate as high as 17%, and that could grow in coming months as more Americans exhaust their unemployment benefits and lose homes to foreclosure.

    When Barack Obama was sworn into office last January, unemployment stood at 7.2%.  President Obama of course blamed this on the preceding Bush Administration, while ignoring the fact that his fellow Democrats had total control of the House and Senate since 2006.

    We were told that unless we passed his $757 billion stimulus plan immediately, unemployment could jump to 8% before we started recovering midway through 2009.  Democrats passed it, and unemployment has soared to over 10% and stayed there.

    Did any of this budget-breaking spending do any good? Not according to the Associated Press:

    “Spend a lot or spend nothing at all, it didn’t matter, the AP analysis showed: Local unemployment rates rose and fell regardless of how much stimulus money Washington poured out for transportation, raising questions about Obama’s argument that more road money would address an ‘urgent need to accelerate job growth” (AP, 1/11/10).

    So Congressional Democrats and the President pushed for a “cap and trade” energy tax and a health care takeover that will add millions more to the jobless roles through massive new taxes, higher consumer prices, oppressive regulations, and out-of-control federal spending and deficits.

    The unemployment rate soared even higher, but Obama and Pelosi learned nothing.  They pushed another “stimulus” bill through the House in December, putting taxpayers another $75 billion in debt.

    Deficit spending undermines economic growth.  Shoring up failed businesses and business practices undermines economic growth.  Piling on debt for our children and grandchildren undermines economic growth.  Lack of economic growth means more joblessness.

    The Obama Administration and the House of Pelosi spent 2009 in a drunken binge of government spending and power grabs.  We are left in January 2010 with a splitting deficit hangover, and the only way to recover is to set aside the bottle of fiscal irresponsibility.

    We can begin by repealing whatever is left of the Bush and Obama Administration “stimulus” plans, ending the energy and health care takeovers, and recovering the taxpayer funds handed over to failed companies.

    Then we can start creating sustainable new jobs through cutting taxes for individuals and small businesses, taking the burden of debt off our children, and restoring the vibrancy of our free market economy that has been stifled by Washington.

    Posted by Big Governement
    January 12, 2010
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    Lessons of ‘66 and ‘94 Loom Over Democrats: Part I

    Midterm elections can present a considerable risk for a new President.  Often viewed as a referendum on a President’s policies, the last 45 years featured such huge party losses as 52 House seats under Clinton, 48 seats under Ford, and 47 seats under Johnson.  While Ford’s fate was not entirely his own, the fates of Johnson and Clinton present foreboding scenarios for Democrats in 2010.

    lyndon

    Johnson and Clinton: Unpopular Policies Lead to Midterm Losses.

    In 1964, the Democrats were sitting atop the political world.  They held 68 Senate seats and gained 36 House seats for an overwhelming margin of 295 to 140 – not to mention winning the White House.  Just two years later, however, they lost 48 seats.  Why? A series of policies that were unpopular including a “credibility gap” on the Vietnam War and what one Democrat Governor said was “Frustration over Vietnam; too much federal spending and… taxation; no great public support for your Great Society programs; and … public disenchantment with the civil rights programs.”  Despite the economy growing 6% because of the Kennedy/Johnson tax cuts, the divide between Johnson’s policies and public opinion produced a 49% approval rating for Johnson and resulted in historic losses for the President and his party in 1966.

    In 1994, the Democrats lost a stunning 54 seats and control of the House for the first time in over 40 years.  Bill Clinton was elected because Bush 41 broke his “no new tax” pledge, the economy was weak, the deficit was high and Ross Perot siphoned votes – all of which gave the young Clinton, promising middle class tax cuts, a plurality victory.  Clinton then overestimated his victory, got off to a rocky start and raised taxes instead of cutting them.  The divide between Clinton and voters over policy played out in his first midterm election when Republicans picked up 54 seats amidst an approval rating of 46% for Clinton – despite a recovering economy.

    bill-clinton1

    Obama’s Growing Divide.

    Barack Obama won the Presidency in large part because of a weak economy.  Although he gave the voters only a vague sense of what Change would really mean, the damage Republicans did to themselves between 2005 and 2008, along with the economy, was enough for Obama to win – along with Media help and the dynamic of an historic first chance to elect a black President.  It is important to note that Obama won only 52.9% of the vote – a victory but not an overwhelming victory.

    Today, Obama’s approval rating is in the mid to high 40s – an historic drop for a first year President.  Democrats rightly point out that the economy Obama inherited hurts his ratings.  It is his policies, however, that are increasingly more at odds with Americans and are truly the cause for his plummeting ratings.

    Keep in mind that Obama approval rating in April was in the 60% range despite the bad economy.  Yes the continuing bad economy has a corrosive effect on Obama’s popularity; his divisive policies, however, have had a worse effect.

    The so-called “stimulus” spending and resultant higher deficits are unpopular and hardly working. The Health Care bill is strongly opposed; the cap and trade/global warming policies are unpopular as are the coming tax hikes.  Those divisive policies have played a central role in quickly driving down Obama’s ratings.

    2010 – No Room for a Turnaround.

    Given lagging job growth and high deficits, and policies that many know will hurt, not help, the economy, the economic situation will not be the Democrats friend in 2010.  The unpopular Health Care bill will dominate the 1st quarter of 2010 as the reconciliation process takes center stage – along with cap and trade, a record federal deficit, along with tax hikes, and an immigration battle that may scare and anger many voters.

    Obama’s mounting policy divide with Americans, combined with a weak economy should leave Obama’s approval ratings in the low 40s by the summer and through the fall.

    All of that is bad news for Democrats House candidates next fall.  Over the last 40 years, the average loss, in House seats, for the Presidents party when his approval rating is below 50% was 41 seats.  Recalling that even in a recovering economy that Clinton lost 52 seats and Johnson 47, unless Obama can bridge the growing policy divide he has with Americans or the economy roars back, unlikely scenarios both, Obama may well suffer the same fate as Johnson and Clinton with losses that exceed 40 seats – enough for the Republicans to retake the House.

    Posted by Big Governement
    January 12, 2010
    Leave a Comment

    Lessons of ‘66 and ‘94 Loom Over Democrats: Part I

    Midterm elections can present a considerable risk for a new President.  Often viewed as a referendum on a President’s policies, the last 45 years featured such huge party losses as 54 House seats under Clinton, 48 seats under Ford, and 47 seats under Johnson.  While Ford’s fate was not entirely his own, the fates of Johnson and Clinton present foreboding scenarios for Democrats in 2010.

    lyndon

    Johnson and Clinton: Unpopular Policies Lead to Midterm Losses.

    In 1964, the Democrats were sitting atop the political world.  They held 68 Senate seats and gained 36 House seats for an overwhelming margin of 295 to 140 – not to mention winning the White House.  Just two years later, however, they lost 48 seats.  Why? A series of policies that were unpopular including a “credibility gap” on the Vietnam War and what one Democrat Governor said was “Frustration over Vietnam; too much federal spending and… taxation; no great public support for your Great Society programs; and … public disenchantment with the civil rights programs.”  Despite the economy growing 6% because of the Kennedy/Johnson tax cuts, the divide between Johnson’s policies and public opinion produced a 49% approval rating for Johnson and resulted in historic losses for the President and his party in 1966.

    In 1994, the Democrats lost a stunning 54 seats and control of the House for the first time in over 40 years.  Bill Clinton was elected because Bush 41 broke his “no new tax” pledge, the economy was weak, the deficit was high and Ross Perot siphoned votes – all of which gave the young Clinton, promising middle class tax cuts, a plurality victory.  Clinton then overestimated his victory, got off to a rocky start and raised taxes instead of cutting them.  The divide between Clinton and voters over policy played out in his first midterm election when Republicans picked up 54 seats amidst an approval rating of 46% for Clinton – despite a recovering economy.

    bill-clinton1

    Obama’s Growing Divide.

    Barack Obama won the Presidency in large part because of a weak economy.  Although he gave the voters only a vague sense of what Change would really mean, the damage Republicans did to themselves between 2005 and 2008, along with the economy, was enough for Obama to win – along with Media help and the dynamic of an historic first chance to elect a black President.  It is important to note that Obama won only 52.9% of the vote – a victory but not an overwhelming victory.

    Today, Obama’s approval rating is in the mid to high 40s – an historic drop for a first year President.  Democrats rightly point out that the economy Obama inherited hurts his ratings.  It is his policies, however, that are increasingly more at odds with Americans and are truly the cause for his plummeting ratings.

    Keep in mind that Obama approval rating in April was in the 60% range despite the bad economy.  Yes the continuing bad economy has a corrosive effect on Obama’s popularity; his divisive policies, however, have had a worse effect.

    The so-called “stimulus” spending and resultant higher deficits are unpopular and hardly working. The Health Care bill is strongly opposed; the cap and trade/global warming policies are unpopular as are the coming tax hikes.  Those divisive policies have played a central role in quickly driving down Obama’s ratings.

    2010 – No Room for a Turnaround.

    Given lagging job growth and high deficits, and policies that many know will hurt, not help, the economy, the economic situation will not be the Democrats friend in 2010.  The unpopular Health Care bill will dominate the 1st quarter of 2010 as the reconciliation process takes center stage – along with cap and trade, a record federal deficit, along with tax hikes, and an immigration battle that may scare and anger many voters.

    Obama’s mounting policy divide with Americans, combined with a weak economy should leave Obama’s approval ratings in the low 40s by the summer and through the fall.

    All of that is bad news for Democrats House candidates next fall.  Over the last 40 years, the average loss, in House seats, for the Presidents party when his approval rating is below 50% was 41 seats.  Recalling that even in a recovering economy that Clinton lost 54 seats and Johnson 47, unless Obama can bridge the growing policy divide he has with Americans or the economy roars back, unlikely scenarios both, Obama may well suffer the same fate as Johnson and Clinton with losses that exceed 40 seats – enough for the Republicans to retake the House.

    Posted by Big Governement
    January 6, 2010
    Leave a Comment

    Congress Tinkers with Withholding Tax Tables for 2010

    Recently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:

    NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.

    DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.

    After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.

    MPj03168680000[1]

    The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.

    Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases. Here are some of the “highlights” of the new 2010 withholding tables:

    1.) Congress has lowered the threshold to capture more wages that qualify to owe taxes–across the board. For example, in 2009 the withholding tax threshold began at weekly single wage levels of $138. In 2010, that same wage is lowered to $116. In short, instead of the taxable wage starting at $138, it is now down to $116–which changes the income threshold and taxes even poorer Americans.

    For married couples, the change in the weekly base taxable wage changes from $303 in 2009 down to $264 in 2010. These lower wage thresholds can be seen throughout the new withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semiannual, and annual, as well as daily and miscellaneous pay periods.

    This across-the-board reduction in the initial wage threshold increases the number of wage earners who would have to pay taxes.

    2.) Instead of seven (7) wage categories, there are now nine (9) wage categories. The new structure allows for direct taxation on the middle class with these wages broken out into smaller categories. The direct hit on the middle class withholding taxes can be seen on all of the new tables. Additionally, the IRS could not explain these changes.

    Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
    2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances

    Not over $276: $0 in taxes
    Over $276 – $400: 10% payroll tax
    Over $400 – $1,392: $12.40 plus 15% of excess over $400
    Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
    Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
    Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
    $14,423: pays $4,162.17 plus 35% of excess over $14,423

    Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances

    Not over $233: $0 in taxes
    Over $233 – $401: 10% payroll tax
    Over $401 – $1,387: $16.80 plus 15% of excess over $401
    Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
    Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
    Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
    Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
    $14,450: pays $4,169.99 plus 35% of excess over $14,450

    These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.

    Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?

    Maybe there is a good explanation for the increase in the withholding taxes from 2009 through 2010, but I remain skeptical, because inherently, Democrats do not have the capacity to reduce taxes and typically make up the revenue somehow.

    Get your calculators out and you do the math. Go here for 2009; start on page 4. Go here for 2010; start on page 39.

    And you should remember this and the fact that House and Senate Republicans united against the stimulus bill, which may have been the trigger to all of this. And Obama and Congress should remember this from December 21, 2009:

    After years of irresponsibility, we are once again taking responsibility for every dollar we spend the same way families do. It’s true that what I’ve described today will not be enough to get us out of our fiscal mess by itself. We face a deficit that will take some tough decisions in the next year’s budget and in years to come to get under control. But these changes will save the American people billions of dollars. And they’ll help to put in place a government that’s more efficient and effective, that wastes less money on no-bid contracts, that’s cutting bureaucracy and harnessing technology, that’s more fiscally responsible and that better serve the American taxpayer.” ~President Obama

    Responsibility. Really?

    Posted by Big Governement
    January 6, 2010
    Leave a Comment

    Congress Tinkers with Withholding Tax Tables for 2010

    Recently, retired military have received e-mail messages notifying them of a withholding tax increase. The email states:

    NO ANNUAL COST OF LIVING ADJUSTMENT (COLA) WILL BE ADDED TO MILITARY RETIRED PAY IN 2010.

    DUE TO RECENT LEGISLATION YOUR FEDERAL WITHHOLDING TAX HAS CHANGED.

    After much investigating and several discussions with the IRS, it appears the Democrats have played a “cash-flow trick” on working Americans and are taking more out of American’s paychecks across the board–all the while touting the Making Work Pay tax credit.

    MPj03168680000[1]

    The trick, when looking at the new withholding tax tables for 2010 as compared to post-stimulus 2009, buries an increase in federal withholding taxes–for all income categories–basically giving the government an interest-free loan until current year taxes are filed next year. Some would blame the increase in withholding on the Making Work Pay tax credit being spread out over 12 months as compared to 2009, which was only over 9 months, but this would be impossible as some middle class wage categories carry an increase in the withholding tax of over $200 per pay period.

    Unlike the middle class wage earners, who are going to see huge amounts taken out of their paychecks, unless they increase their exemptions on their W4 form, it’s an increase that most wouldn’t even notice–$10 or $20 in some cases. Here are some of the “highlights” of the new 2010 withholding tables:

    1.) Congress has lowered the threshold to capture more wages that qualify to owe taxes–across the board. For example, in 2009 the withholding tax threshold began at weekly single wage levels of $138. In 2010, that same wage is lowered to $116. In short, instead of the taxable wage starting at $138, it is now down to $116–which changes the income threshold and taxes even poorer Americans.

    For married couples, the change in the weekly base taxable wage changes from $303 in 2009 down to $264 in 2010. These lower wage thresholds can be seen throughout the new withholding charts for weekly, biweekly, semi-monthly, monthly, quarterly, semiannual, and annual, as well as daily and miscellaneous pay periods.

    This across-the-board reduction in the initial wage threshold increases the number of wage earners who would have to pay taxes.

    2.) Instead of seven (7) wage categories, there are now nine (9) wage categories. The new structure allows for direct taxation on the middle class with these wages broken out into smaller categories. The direct hit on the middle class withholding taxes can be seen on all of the new tables. Additionally, the IRS could not explain these changes.

    Let’s look at the actual numbers for one category and compare them from 2009 to 2010:
    2009 Biweekly, Single, Payroll Period, after subtracting withholding allowances

    Not over $276: $0 in taxes
    Over $276 – $400: 10% payroll tax
    Over $400 – $1,392: $12.40 plus 15% of excess over $400
    Over $1,392 – $2,559: $161.20 plus 25% of excess over $1,392
    Over $2,559 – $6,677: $452.95 plus 28% of excess over $2,559 (Notice the large salary range)
    Over $6,677 – $14,423: $1,605.99 plus 33% of excess over $6,677
    $14,423: pays $4,162.17 plus 35% of excess over $14,423

    Let’s look at the new numbers for 2010 Biweekly, Single, Payroll Period, after subtracting withholding allowances

    Not over $233: $0 in taxes
    Over $233 – $401: 10% payroll tax
    Over $401 – $1,387: $16.80 plus 15% of excess over $401
    Over $1,387 – $2,604: $164.70 plus 25% of excess over $1,387
    Over $2,604 – $3,248: $468.95 plus 27% of excess over $2,604 (Notice the large salary range is gone)
    Over $3,248 – $3,373: $642.83 plus 30% of excess over $3,248 (Notice the substantial increase and 30% tax rate on these wages)
    Over $3,373 – $6,688: $680.33 plus 28% of excess over $3,373
    $14,450: pays $4,169.99 plus 35% of excess over $14,450

    These patterns of additional withholding can be seen throughout the new charts for the 2010 tax year for single and married persons. It appears that everyone earning a paycheck is affected, not just retired military; social security payments will remain the same.

    Why would the Democrats tinker with the withholding taxes and, ultimately, cause more stress on Americans and businesses? Why would the Democrats create more wage categories and deliberately target the middle class with a huge withholding increase and 30% tax rate? Are the Democrats trying to backfill the deficits they created in 2009? Because taxpayers will have overpaid the federal government payroll taxes, will they be eligible to get back this additional withholding money in a tax refund when filing in 2011? Do taxpayers in the hardest-hit wage categories even realize that their paychecks are going to be significantly lower, unless they make the necessary changes?

    Maybe there is a good explanation for the increase in the withholding taxes from 2009 through 2010, but I remain skeptical, because inherently, Democrats do not have the capacity to reduce taxes and typically make up the revenue somehow.

    Get your calculators out and you do the math. Go here for 2009; start on page 4. Go here for 2010; start on page 39.

    And you should remember this and the fact that House and Senate Republicans united against the stimulus bill, which may have been the trigger to all of this. And Obama and Congress should remember this from December 21, 2009:

    After years of irresponsibility, we are once again taking responsibility for every dollar we spend the same way families do. It’s true that what I’ve described today will not be enough to get us out of our fiscal mess by itself. We face a deficit that will take some tough decisions in the next year’s budget and in years to come to get under control. But these changes will save the American people billions of dollars. And they’ll help to put in place a government that’s more efficient and effective, that wastes less money on no-bid contracts, that’s cutting bureaucracy and harnessing technology, that’s more fiscally responsible and that better serve the American taxpayer.” ~President Obama

    Responsibility. Really?

    Posted by Big Governement
    January 5, 2010
    Leave a Comment

    ClimateGate’s Next Phase: False Claims Act Lawsuit

    The United States government has shelled out huge sums of money to universities, think tanks, and businesses to study global warming climate change.  The government is poised to dole out even more money for climate-change “solutions” like the cap-and-trade scheme.  With the revelations about the lengths to which the leading group of global warming doomsayers went to “hide the decline” in temperatures in their seminal studies – studies that themselves spawned an avalanche of government spending – the world is seeing that the entire enterprise may be based on a fraud.

    How FCA Works

    In a normal scandal where the government appears to have been ripped off, someone in the legislative or executive branch can usually be counted on to investigate the alleged fraud, if for no other reason than advancing their own political career.  In the case of this scandal, however, the Obama administration and congressional Democrats have calculated that their political interests are best served by ignoring ClimateGate.  This is sure to continue as new scandals emerge.

    That leaves only the judicial branch as a place where climate change fraud can be unmasked in a government forum.

    Individuals with inside knowledge about scientists, businesses, or any organization who knowingly used false statements to get (or keep) government money to perpetuate the “climate change” machine should consider a lawsuit under the federal False Claims Act.

    The False Claims Act permits whistleblowers to sue in the name of the government as a “qui tam” plaintiff.  Qui tam whistleblowers have used the FCA for decades to police (some would say hound) government contractors accused of obtaining government money by means of false statements.  What’s the non-altruistic incentive for exposing fraud on the government?  Successful whistleblowers can keep a share of the money that a federal judge or jury says should be paid back to the government, sometimes up to 30% of the recovery.  Indeed, whistleblowers have recovered hundreds of millions of dollars in these suits over the last 20 years.

    There is no reason this legal tool can’t be used against unscrupulous professors, scientists, and “green jobs” hucksters who knowingly submit false statements to get government grants that fund their research, fuel their green-tech start-ups, and underwrite their proselytizing about supposed man-made climate change.

    Importantly, false statements necessary to justify a False Claims Act suit don’t have to involve the same type of data-manipulation exposed in the current ClimateGate scandal.  A climate-fraud FCA case could be made out of any type of false statement made in order to get or keep government money.  Government grants and contracts typically involve a significant amount of ongoing certification of compliance with bureaucratic restrictions – think of a government contractor’s progress reports or a hospital’s never-ending stream of paperwork assuring that all is in order – and false statements in this paperwork may open the door to a lawsuit.

    What about retaliation against those who blow the whistle on their organization or their boss?  The law provides extremely strong protections for those who bring a lawsuit.  In fact, the FCA contains separate provisions permitting whistleblowers to recover for such retaliation.

    Finally, a few important caveats for anyone considering a qui tam suit:

    First, secrecy is important, at least at the beginning.  You may lose the opportunity to litigate on behalf of the government if you or someone else publicizes your inside information.  The FCA imposes strict guidelines on whistleblowers’ ability to maintain suits based on information that has been publicly disclosed.

    Second, states and state universities (like Prof. Michael Mann’s employer Penn State) cannot be sued under the FCA for reasons having to do with federalism, but individuals working at state universities can be named as defendants if they caused false claims to be submitted.

    Third, before filing suit, whistleblowers must share the information supporting their suit with the Justice Department.  Although the government has the option of taking over the litigation to recover the money, it is unlikely, to say the least, that the current Justice Department would assist a whistleblower whose FCA case threatened to undermine the administration’s climate-change policies.  If (or when) the government declines to intervene, the whistleblower plaintiff and their lawyers can vigorously prosecute the lawsuit, with all the powerful tools of pre-trial discovery.

    A climate fraud False Claims Act suit would be no small undertaking.  The rewards, however, could be quite substantial, and not just in monetary terms.  Who would like to see a videotaped deposition of a climate-change fraudster defending his or her actions under oath?  I sure would.

    Posted by Big Governement
    December 31, 2009
    Leave a Comment

    Barack Obama and the Exhausted Presidency

    In a recent puff piece, The New York Times reports that our President is tired. This is not the first such report. Back in May, when he treated England’s Gordon Brown so shabbily, the excuse given — according to The Daily Telegraph – was that wrestling with the economic crisis had left Barack Obama too exhausted to be able to focus on foreign affairs.

    article-1135603-034A1057000005DC-377_468x286

    We should perhaps discount what was said in May. For, as I have attempted to document in detail here, here, here, here, here, and here, President Obama is a gentleman, and, as such, he is never unintentionally rude. He is, in fact, a master of the insulting gesture, which he seems to reserve for political opponents, such as Hillary Clinton, John McCain, and Sarah Palin, and for political leaders in countries, such as England, France, Germany, Israel, and Poland, which were closely associated with the United States prior to the Age of Obama.

    This time, however, Barack Obama may be genuinely tired, and he may be depressed as well. He certainly has warrant. In public, he may claim that he deserves a B+ for his first year in office, but the polling data suggests that he has earned a failing mark, and he has to know better.

    As I observed in an earlier post, if Barack Obama harbored any doubts as to whether he was leading his party off a cliff, William Daley — the brains behind the Chicago machine — put these doubts to rest in the op-ed that he published on Christmas Eve in The Washington Post, warning that, if the Democrats did not plot “a more centrist course,” they would “risk electoral disaster not just in the upcoming midterms but in many elections to come.”

    Barack Obama has thus far led a charmed life — prep school in Hawaii, Occidental College, Columbia University, Harvard Law School, the Illinois State Senate, the U. S. Senate, the Presidency. He did lose a race for a Congressional seat. But, otherwise, to all appearances, he has never even stumbled.

    One fact is emblematic. Obama managed to get elected editor of The Harvard Law Review without having to do what all of his predecessors did — which is to write an article of a quality that would allow it to be published in the journal. With the one exception mentioned above, his political races have been easy. Events consistently broke in his favor. He has never really been tested — until now.

    And, of course, now he finds himself in over his head.

    Obama’s difficulties are of his own making, and they arise from his failure thus far to recognize what it means to be President of the United States.

    American presidents put aside personal pique and pay close attention to protocol. They do not bow to queens, kings, and emperors; they do not warmly embrace dictators and thugs; and they do not direct gratuitous insults at America’s allies.

    They know that, for a president, the personal is not political and the political is not personal. What happens has little to do with the man and everything to do with the office he holds, and no president can opt out of the responsibilities that go with the office.

    A president who ignores the niceties, who stiffs America’s friends and embraces her enemies, who betrays weakness and irresolution with regard to an ongoing war will soon discover that others can be rude as well — that those who sense his weakness will treat him and, more to the point, his country like dirt. This is what the Chinese did when Barack Obama visited Beijing and Copenhagen, and Hugo Chavez and Mahmoud Ahmadinejad have repeatedly done the like.

    This is no minor matter — for what begins with calculated rudeness can turn into something far worse, as John Kennedy and Jimmy Carter learned to their regret.

    In the domestic sphere, American presidents do not leave the initiative to Congress, and they do not continue the presidential campaign after the election is over — not, that is, if they know what is good for them.

    The President of the United States represents the national interest; Congressmen often cater to particular interests. If legislation is left to the latter, principle tends to give way to patronage, and the result can be a profound embarrassment. Like it or not, when he signed the so-called “stimulus” bill, Barack Obama accepted responsibility for the national debt and for the systematic looting embedded in the bill.

    Once the looting begins, Congressmen may not be able to help themselves. The current crop needed — Congressmen always need — adult supervision, and Barack Obama offered them none. The same argument applies to the healthcare proposals passed by the House and the Senate, which are, by any system of accounting, a disgrace.

    The Obama administration’s handling of terrorism is of a piece with the pattern of irresponsibility evident in its conduct of foreign policy and its management of domestic affairs.

    When news came that a Nigerian trained in the Yemen and equipped with an explosive device had very nearly brought down a Northwest Airlines jumbo jet outside Detroit, Janet Napolitano initially thought it appropriate to say that “the system had worked,” and Barack Obama, after remaining ostentatiously silent for three days, dismissed the matter as “allegedly” the work of an “isolated extremist.”

    Both backtracked in subsequent statements, to be sure. But it was clear that, at first, neither took the incident seriously.

    It was obvious from the start that it was dumb luck and nothing else that saved the passengers on that flight, that no “isolated extremist” could have done what Umar Farouk Abdulmutallab managed to do, and that the elaborate security procedures put in place after 9/11 had failed ignominiously.

    By the time that President Obama first bothered to address the matter, it was already evident that the authorities in the United States had been warned about the man and that he had been trained by a branch of Al Q’aeda in the Yemen; and we now know that the religious leader that Abdulmutallab sought out in the Yemen was the very man with whom Major Nidal Malik Hassan was in communication before he massacred thirteen Americans at Fort Hood.

    The event at Fort Hood, which revealed deep flaws in our intelligence apparatus, should have been a wake-up call. What Major Hassan did and what Umar Farouk Abdulmutallab attempted to do are not crimes in the ordinary sense of the word. They are acts of asymmetric war, intimately linked with one another, and, if we are to reduce the likelihood of things like this happening again, they need to be treated as such.

    Even left-liberals are beginning to figure out that something serious is amiss. The latest of these is, of all people, Maureen Dowd — who, on Tuesday, in a column in The New York Times aptly entitled “As the Nation’s Pulse Races, Obama Cannot Seem to Find His,” posed the following question:

    If we can’t catch a Nigerian with a powerful explosive powder in his oddly feminine-looking underpants and a syringe full of acid, a man whose own father had alerted the U.S. Embassy in Nigeria, a traveler whose ticket was paid for in cash and who didn’t check bags, whose visa renewal had been denied by the British, who had studied Arabic in Al Qaeda sanctuary Yemen, whose name was on a counterterrorism watch list, who can we catch?

    In her column, Dowd went on to compare Obama with Star Trek’s Spock, noting his propensity to oscillate between inspiration and listlessness, and observing just how “chilly” he appeared in “his response to the chilling episode on Flight 253, issuing bulletins through his press secretary and hitting the links.” What bothered her most, however, was that the President of the United States did not even “seem concerned.”

    When Obama ran for the Democratic nomination, his opponents — Joe Biden among them — warned that he was not ready. When his party nominated him, Republicans made the same point, but to no avail.

    Now, if I am correct in my interpretation of the character of his exhaustion, even Obama appears to realize that he may not be up to the job. It seems not even to have crossed his mind when he ran for the office and assumed it that with the office would come responsibilities of a sort that had never previously encountered and that he had no particular desire to shoulder.

    Now he is stuck with those responsibilities, and we are — at least, for the time being — stuck with him. Let’s hope that he returns from Hawaii rested, resolute, and intent on carrying out in a responsible fashion the duties associated with his office — for this would require of him a radical change of course.

    Someone should give President Obama sign for his desk in the Oval Office. It should read, “The buck stops here.”

    Posted by Big Governement
    December 28, 2009
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    Obama’s 6 Worst Policy Decisions

    obama

    From Guantanamo to Health Care, Obama is certainly seeking to Change America – or more accurately -to accelerate the pace of change from a private enterprise-freedom based civilization to a Big Government-run society.  According to Thomas Paine, “It is the duty of a patriot to protect his country from his government.”  I realize that is a slightly different definition than Joe Biden would use, but nevertheless, in that light, here is my listing of the worst of his policy decisions:

    6. Bailing Out GM.  “His policy of public investments prevented necessary liquidations.  The businesses he hoped thus to save either went bankrupt in the end, after fearful agonies, or were burdened . . . by a crushing load of debt.  [He] undermined property rights . . .pushed federal credit into the banks and bullied them into inflating . . .” Historian Paul Johnson wrote that of Herbert Hoover.  You can almost substitute Obama’s name for Hoover’s  in every detail.   By the way, Government Motors sales are declining at 3 times the rate of the industry as a whole.  Hoover would be proud.

    5.  The Energy Farce.  In what universe does economics work like this:  A $14 trillion economy is sinking and employers are cutting jobs, so…let’s raise the costs of doing business even more and that will lead to a recovery fueled by an industry, i.e. green technology, which barely exists?  Cap & Trade is right out of a classic “command economy” model worthy of 1940’s Eastern Bloc imaginations.  If it passes, its regulations will stifle the US economy for decades before someone is wise enough to junk it amidst global cooling.

    4.  The So-Called Stimulus Bill.  So far, this is Obama’ signature legislative “accomplishment.”  In time it will be his albatross.  The basic policy decision made by Obama was directly the opposite of the choice Reagan made.  Reagan said government was not the solution to our problems -  Government was the problem.  Reagan dramatically cut taxes and regulations, the economy rebounded and tax revenues doubled.   Obama’s policy, on the other hand was, and is, to have government spend our way out of our economic problems.    Sadly for us, spending, taxing and borrowing is not an economic remedy for too much existing debt and the far too high existing tax burden.  Indeed, as the Congressional Budget Office pointed out, in the long run, Obamanomics will hurt more than it will help.  Given its short term-failure, it’s hard to imagine something worse and it is even harder not to dub this one of his worst policy decisions.

    3.  Socialized Health Care.   Do I really have to explain the demerits of this decision?  Socialized medicine doesn’t work, never has and never will and will be nearly impossible to repeal – oh, and it will bankrupt us.  Next!

    2.  Trying Terrorists in American Courts.   As I stated my article, Internment, CSI and Eric Holders Disarming of America, throughout our history, we have treated enemy combatants as those committing an act of war.  That is so because (a) they are not US citizens, and (b) their acts were acts of war.  In other words, they were not criminal acts of a US citizen committed during peace time.  Now however, Obama has allowed at least one enemy combatant to be tried in a US criminal court subject to the constitutional laws of our country.  The parade of horribles that will emerge from this decision are numerous and include putting America on trial, tearing down the barriers between citizens and non-citizens and changing the way we fight wars.

    1.  Cancelling the Missile Defense System.   On November 16, 2008, fresh off Obama’s victory, Time Magazine carried an article that read:  “Missile-defense skeptics yearning for a fresh look at the wisdom of pumping $10 billion annually into missile defense aren’t going to get it from Barack Obama when he moves into the Oval Office.”  How so very wrong Time was.  Obama did cancel the long range system – just as every liberal Democrat has been want to do to American defense systems in pursuit of less guns and more butter.   So why was that Obama’s worst policy decision?  Even worse than nationalization of health care?

    Let me count the ways:

    1) Defense spending on defense technology is dollar-for-dollar very productive (compared to most gov’t spending) and leads to break-throughs thereby employing and encouraging US scientists – I thought the liberals told me we needed to encourage future scientists?

    2) You do not negotiate for years with an at-risk ally, i.e. Poland, and then pull the plug on the deal – what does that say to future at-risk allies, like say Israel!  It says you can’t count on the U.S.

    3) Obama’s decision to abandon the longer range missiles is based on an assumption that Iran is no longer interested in longer based offensive missiles.  You read that right, Obama is trusting Iran against the advice of Bush era advisors,

    4) The decision leaves the U.S. without a long range system for the Eastern Seaborg – You are on your own NYC – don’t worry it can’t happen twice,

    5) The Decision tells Middle Eastern countries, like Saudi Arabia, that you better defend yourself, i.e. it could/will start a local arms race.

    6) It was an obvious caving into Russia without a serious, tangible benefit, and

    7) It is in keeping with his other defense cuts which send a strong message when you consider his weak rhetoric.  Dean Acheson, who turned his back on South Korea, which led to the Korean War, could not be more impressed.

    All in all, when it comes to the nuclear world, ignoring Jefferson’s advice that “Weakness provokes insult & injury,” seems beyond a bad policy decision – it is his worst policy decision.

    So there they are – the 6 worst.  Stay tuned, however, the worst may be yet to come!

    Posted by Big Governement
    December 26, 2009
    Leave a Comment

    Blank-Check Bailout for Fannie and Freddie Means Taxpayers Get a Lump of Coal from Obama

    Even though politicians already have flushed $400 billion down the rathole, the Obama Administration has announced that it will now give unlimited amounts of our money to prop up Fannie Mae and Freddie Mac, the two government-created mortgage companies.

    fann

    While President Obama should be castigated for this decision, let’s not forget that this latest boondoggle is only possible because President Bush did not do the right thing and liquidate Fannie and Freddie when they collapsed last year. And, to add insult to injury, Obama’s pay czar played Santa Claus and announced that that a dozen top “executives” could divvy up $42 million of bonuses financed by you and me. Not a bad deal for a group of people that more properly should be classified as government bureaucrats.

    Here’s an excerpt from the Washington Post about the Administration’s latest punch in the gut for taxpayers:

    The Obama administration pledged Thursday to provide unlimited financial assistance to mortgage giants Fannie Mae and Freddie Mac, an eleventh-hour move that allows the government to exceed the current $400 billion cap on emergency aid without seeking permission from a bailout-weary Congress. The Christmas Eve announcement by the Treasury Department means that it can continue to run the companies, which were seized last year, as arms of the government for the rest of President Obama’s current term. But even as the administration was making this open-ended financial commitment, Fannie Mae and Freddie Mac disclosed that they had received approval from their federal regulator to pay $42 million in Wall Street-style compensation packages to 12 top executives for 2009. The compensation packages, including up to $6 million each to Fannie Mae and Freddie Mac’s chief executives, come amid an ongoing public debate about lavish payments to executives at banks and other financial firms that have received taxpayer aid. But while many firms on Wall Street have repaid the assistance, there is no prospect that Fannie Mae and Freddie Mac will do so.

    Posted by Big Governement
    December 25, 2009
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    Bailouts, TARP…And Bowl Game Sponsorships?

    One year ago this month, I opined about taxpayers footing the bill for several college football bowl games.  I decided to revisit the college football bowl scene and find out who’s sponsoring this year’s post-season gridiron clashes.

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    Perhaps most surprising among my findings is the fact that a UAW-General Motors entity, the UAW-General Motors Human Resources, is listed here as a sponsor, alongside Ford and a few other organizations, of the Little Caesar’s Pizza Bowl (formerly known as the Motor City Bowl) to be played at Ford Field in Detroit Dec. 26.

    This sponsorship deal makes me wonder how many football fans of the matchup between Marshall University and Ohio University will spend halftime visiting this sponsor’s exciting web site.

    The Eagle Bank Bowl is set for Dec. 29 at RFK Stadium in Washington, D.C., and appears to be back stronger than ever in 2009. The bowl’s “strength”– not found in the battle between UCLA and Temple — could be due to the fact that it’s title sponsor, Bethesda, Md.-based Eagle Bancorp Inc., received $38.2 million via the Troubled Asset Relief Program, according to a Wall Street Journal report early this year. [Note: From the strange-but-true department, the name of the bank's chairman and chief executive officer is -- drumroll, please -- Ron Paul.]

    Judging by its web site, it appears no one but the federal government — which provided $3.55 billion in bailout funds to Capitol One — is helping the title sponsor of the Jan. 1 Capitol One Bowl pitting LSU against Penn State in Orlando. The good news: Over the summer, the bank paid back more than it received, according to this report.

    The Detroit News reported last week that Motor City-based GMAC Inc., sponsor of the GMAC Bowl, could benefit from a bailout extension. To date, according to the newspaper, the company has received $13.5 billion in government support and has been in talks with the White House about an additional infusion of up to $5.6 billion. What might happen if an extension falls through before the Jan. 6 game between Troy and Central Michigan? Not much, I suspect.

    Finally, after receiving a whopping $20 $25 billion in TARP funds, according to the aforementioned Journal report, Citigroup officials promised yesterday (see this article) they’re going to pay back $20 billion soon. Good for them!

    As the title sponsor of both the Rose Bowl (Jan. 1) and the BCS National Championship (Jan. 7) in Pasadena, Citi should be expected to spare no expense when it comes to putting on a good show.  At a minimum, they should buy the Oregon Ducks some decent-looking uniforms to wear as they take on Ohio State in the “granddaddy” of bowl games and give the Texas cheerleaders gold-plated shovels to clean up Bevo’s mess after he sees how many points Alabama has pasted on his Longhorns after 60 minutes.

    Posted by Big Governement
    December 24, 2009
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    Lessons from John Galt

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    Recent headlines seem lifted directly out of an Ayn Rand novel. President Obama decries the “fat cat bankers on Wall Street”. Harry Reid attacks insurance companies for making too much profit. House Democrat leaders call Tea Partiers “Racist, Nazi, Gun Nuts”.  How about this nauseating statement made by Army General George Casey after the Muslim terrorist attack on Ft. Hood?

    As great a tragedy as this was, it would be a shame if our diversity became a casualty as well

    Each of these headlines might well have been uttered by an Ayn Rand character. Rand, whose father’s pharmacy was confiscated by the Soviets during the communist revolution of 1917, and who came to America in 1926, seems uniquely able to speak to us about the inverted morality of our times. Virtue is to be apologized for. Depravity commands respect. Success is cast as evil and punished while failure is blamed on others and rewarded. Rand’s insights into the psychological state of collectivists—those who demand that we sacrifice our individual freedom and happiness for the sake of the state—explain what often seems incomprehensible to thinking people.

    An epic demonstration of the inverted morality that Rand described was on display in Copenhagen last week as the world’s worst most evil dictators—Mugabe and Chavez—partnered with the world’s most visible and misguided progressives—Al Gore , Gordon Brown, Barack Obama—in an orgy of depravity. Sadly, even the Pope lent his moral support to the lunacy, saying, “Industrialized nations must recognize their responsibility for the environmental crisis, shed their consumerism and embrace more sober lifestyles.”

    John Galt, the industrialist hero of Rand’s 1957 masterpiece, Atlas Shrugged, refers to those in power who stripped men of their minds, wealth and freedom, as mystics. The mystics of spirit were the religious leaders of centuries past who proclaimed that faith is superior to reason. Galt is no fan of these mystics but it is the mystics of muscle—the progressives who force us to submit to their version of the common good—that Galt despises.

    And Barack Obama is a mystic of muscle in its purest form, able to corral the worshipping media, the always superficial Hollywood elites, America hating academics, state-sponsored capitalists (e.g., Goldman Sachs), and grant hungry “scientists” & environmentalists hoping to cash in on a trillion dollar loot of the American people called global warming. These are the pillars of deceit Obama used to get elected. This was how he convinced enough of us to give up our minds for the the mystical concept that Rand called the collective. True to form, Barack, master of the mystics of muscle, has used his power mightily to loot from the producers, and hand it to the parasites, crooks and undeserving (read; SEIU, ACORN, UN Climate Fund, General Motors).

    John Galt leads a revolt by the productive class and outlines Rand’s philosophy in his 60-page radio address. Here, he explains how human beings—alone among life forms—can choose to be mindless:

    A living entity that regarded its means of survival as evil, would not survive. A plant that struggled to mangle its roots, a bird that fought to break its wings would not remain for long in the existence they affronted. But the history of man has been a struggle to deny and destroy the mind.

    Sad to say, for a movement powered by the mindlessness, there is plenty of fuel to sustain “hope and change”:

    • Who but the mindless can believe that government run health care will reduce costs and improve care while covering more people?
    • Who but the mindless can believe that this President is now serious about reducing the deficit after shattering spending records during his first year?
    • Who but the mindless can take seriously the sham “jobs summit” held by a President whose every policy is a lesson in job destruction?
    • Who but the mindless can believe Obama’s lie that “Cash for Clunkers” which cost taxpayers $24,000 per car was successful?
    • Who but the mindless would not outraged that our government has reneged on its promise pay back the unused TARP fund to taxpayers?
    • Who but the mindless would not question the morality that the world’s finest health care, which has extended and improved human life in unimaginable ways—conceived and produced by countless unsung heroes in the private sector—should magically be transformed by Harry Reid and Nancy Pelosi into a “human right”, taken over by the state and rationed out as they please?

    The assault on reason by our President and Congress goes on ad infinitum. It is mindlessness that elected “hope and change” and mindlessness that sustains it. Ayn Rand recognized that the greatest struggle on earth is that between the individual and the collective, and to submit to the collective, the individual must lose his ability to think for himself. Howard Roark, hero of The Fountainhead explains;

    The mind is an attribute of the individual. There is no such thing as a collective brain.

    The last thing a mystic of muscle wants is for us to start using our minds to uncover their fraud. Galt gets to the heart of the evil of progressive demand that we all serve the state when he says,

    By the grace of reality and the nature of life, man—every man—is an end in himself, he exists for his own sake, and the achievement of his own happiness is his highest moral purpose.

    Posted by Big Governement
    December 21, 2009
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    ObamaCare and Mission Creep: Why Health Care Reform Will End Up Covering Much More Than You Think.

    Government programs almost always end up costing much more than they were supposed to. They also usually end up doing more than they were supposed to. Would ObamaCare be any different?

    Some say ObamaCare would lead to death panels, even euthanasia classes. But you don’t have to side with those who warn of euthanasia classes to recognize that government programs often end up doing all kinds of things that weren’t in politicians’ original plans.

    Call it mission creep. Politicians pass a program, and then the scope of the program grows and changes.

    It’s happened with everything from state-level health insurance plans to the Troubled Asset Relief Program. TARP’s original mission was spelled out in its name—the government would purchase troubled assets from financial institutions. However, just over a year later TARP’s mission has exploded, and billions in TARP funds have gone to bail out General Motors, Chrysler, and struggling homeowners. TARP money may even fund another stimulus.

    “The Best Laid Plans of ObamaCare” is written and produced by Ted Balaker, and hosted by me, Nick Gillespie. Director of Photography: Alex Manning; Associate Producer: Paul Detrick.

    Approximately 2.30 minutes. For more health-care-related vids, go to Reason.tv or visit our YouTube channel.

    Posted by Big Governement
    December 21, 2009
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    The Problem is Spending, not Deficits

    Reckless spending increases under both Bush and Obama have resulted in unprecedented deficits, which is the reason for boosting the nation’s debt limit by an astounding $1.8 trillion. Government borrowing has become such a big issue that some politicians are proposing a deficit reduction commission, which may mean they are like alcoholics trying for a self-imposed intervention.

    But all this fretting about deficits and debt is somewhat misplaced. Government borrowing is a bad thing, of course, but this video explains that the real problem is excessive government spending.

    Fixating on the deficit allows politicians to pull a bait and switch, since they can raise taxes, claim they are solving the problem, when all they are doing is replacing debt-financed spending with tax-financed spending. At best, that’s merely taking a different route to the wrong destination. The more likely result is that the tax increases will weaken the economy, further exacerbating America’s fiscal position.

    Posted by Big Governement
    December 21, 2009
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    Our National Debt is Growing to Immoral and Unsafe Proportions

    If you are under 30, you really need to read this column and pass it on to your friends.  Your elected officials are dooming you to a new sort of bondage, a form of 21st Century slavery, if you will.

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    First, some background.

    On October 16, 1854, Abraham Lincoln, then a former one-term Congressman, gave a three hour speech in Peoria, Illinois in which he decried the extension of slavery into the territories.  The Republican Party was barely three months old.  Lincoln warned that slavery was a “monstrous injustice” based on the raw principle of “self-interest” at odds with the “fundamental principles of civil liberty.”

    Lincoln was moved to action by the repeal of the Missouri Compromise, widely seen as a check on the growth of slavery in the territories.

    At Peoria, Lincoln presented the economic, legal and moral case against slavery.

    Today, we are faced with a similar and urgent crisis: a burgeoning debt at all levels of government that threatens our prosperity, our posterity, and our probity.

    This week, the U.S. House of Representatives voted 218-214 to raise the debt limit to $12.4 trillion.  Including all unfunded liabilities, such as Medicare and Social Security, federal obligations have reached $106 trillion.

    Just the cost of paying back the borrowing from President Obama’s Stimulus plan, which I opposed, will cost you $280 per month for the rest of your life.  Imagine buying and trashing an iPod every month for the rest of time – that’s the practical impact of just one of the many planned expansions of government from Obama, Reid, Pelosi and Boxer.

    Meanwhile, garden variety federal spending – spending that grew too fast under our last president as well – is vaulting even higher, with Senator Boxer recently voting for a “routine” $1.1 trillion appropriations bill that spends 12 percent more than last year.

    Paying for all of this federal spending will eventually force middle-class tax rates to double.  For those in college that means you will likely have to postpone starting a family and buying a house, take longer to pay off your student loans, and have less savings for education, health care, and retirement.

    This is intergenerational theft and it is immoral.

    In fact, it has a certain parallel to slavery.  In effect, your leaders are stealing from your future while you, those younger than you, and those yet born, don’t have a say in the process. It is, as Lincoln said, based on pure “self-interest.” Of the mounting debt and its impact on the 65 million Americans between the ages of 16 and 30 we can invoke Lincoln by saying that your, “sacred right of self government is grossly violated by it!”

    In this, California is a harbinger, once again, for the nation. Our state debt and obligations are approaching half a trillion dollars.  This has led to a plummeting credit rating that pumps up the cost of borrowing.  This, in turn, diminishes the money available to fund schools, repair roads, and provide social services.  That’s why, as a lawmaker, I have yet to vote for a general obligation bond that would be repaid by the taxpayers – our credit card has been maxed out since I arrived in Sacramento in 2004 and, no matter what the claimed urgency, I have resisted the temptation to add to debt that my 18 and 12-year-old daughters would have to repay for the next 30 years.

    Our national debt also has profound and unsettling national security ramifications.  Since Mr. Obama became president, the Peoples Republic of China has quietly sold their long-term U.S. government securities and shifted their entire $985 billion government debt portfolio to securities with six-month maturities.  What might happen next spring when the Chinese simply let these securities mature and demand dollars for their debt?

    Once upon a time, Americans were concerned for their children, for future generations.  They saved and invested and built.  Today, those in charge are taking the full inheritance from those whose turn at the helm is yet to come.  In a sense, allowing their raw self-interest in massively borrowing for the present to bury the future.  We are living better today at the expense of those who largely cannot vote.  Why?  Because we can.

    The institution of slavery was also driven by self-interest.  One man was able to live off the sweat of another man’s brow.  Why?  Because he could.

    Perhaps America has become hardened to her children.  Perhaps the generation in power today, a generation raised on self-interest, self-gratification, and self-actualization, cannot help but to steal from the future to bolster their present.

    I can only hope that California’s youth will awake to the danger and reclaim their future before it is too late.

    One last word.  When Lincoln spoke at Peoria, the Republican Party was in its infancy.  Today, the Republican Party is 155-years-old.  In recent years we lost our way on the principle of fiscal discipline.  Many current and former Party leaders either encouraged Big Government or idly stood by without thought of the economic, moral and future implications.  This is why the Republican Party ranks lower in many eyes than an as yet unformed “Tea Party.”  But, the debt crisis is too dire, and the stakes too high, to try to form a new party in the midst of this storm.  Instead, those of us who care about America and its future must act now to fully reclaim the Republican Party and fashion it into a real alternative to the Big Government, Big Spending, Big Borrowing and Big Taxing ways of the Democratic Party.  It is only by first being true to our principles that can we hope to successfully challenge Barbara Boxer, Harry Reid, Nancy Pelosi and their allies.

    Posted by Big Governement
    December 17, 2009
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    Let’s Be Frank, Mr. Vice President: The Stimulus Failed

    Today, the State of Georgia welcomes Vice President Joe Biden for an update on the administration’s so-called stimulus bill. With national unemployment sitting today at 10%, and worse in Georgia, the White House’s credibility on stimulus success is dubious at best. Yet as proper manners would dictate, we owe the Vice President an opportunity to make his case.

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    President Obama tapped Mr. Biden to oversee the stimulus program because, as he put it, “nobody messes with Joe.”  While that may be so, as the Vice President has been traveling around the nation touting the various spending priorities of the stimulus bill, their alleged benefits have yet to materialize into jobs.  So if the Vice President is visiting to have us believe expanding broadband is how jobs are created or that we can “weatherize” our way back to prosperity, it may be Joe who is messing with Georgia.

    It’s actually quite telling that the Vice President is visiting us to discuss the stimulus package on the same day that President Obama is setting off for Copenhagen to promote a job-killing National Energy Tax as a means to combat global warming. Because what was evident in the stimulus package, and has been reinforced through subsequent actions, is that this administration places a higher premium on its social goals than on putting people back to work.

    To demonstrate this point, just take a look at the projects funded by the stimulus package. The hodgepodge of wasteful spending has included $3.8 million for an urban art trail in Rochester, N.Y., $1.5 million to streetscape a Detroit casino, and $578,000 to fight homelessness in Union, N.Y., a town with no reported homeless people. Rather than anything resembling a jobs bill, the package was awash with pet projects for Democrat members of Congress and their special interest allies.

    Perhaps no agenda was more apparent in the bill than that of transforming our economy to the liking of Al Gore and his friends. The bill was loaded with billions of dollars to “green” America. The merit of each “green” initiative can be debated, but what is indisputable is they have nothing to do with sparking immediate economic growth. If taxpayer-funded rebates for the purchase of more energy efficient dishwashers were the key to putting folks back to work, I’d be all for it. But the “Cash-for-Clunkers: Home Appliance Edition” program included in the bill is not what will cure unemployment.

    The unfortunate reality is that with its promises of an immediate impact and jumpstarted job growth, the stimulus has been a demonstrable failure.

    We were told we’d see up to 4 million jobs “saved or created.” The Vice President’s own economist, in a now infamous report, told us if we passed this emergency package that unemployment would be contained to 8%.  Instead, over 3 million Americans have lost work since its passage, and unemployment is expected to remain near 10%.  In another promise, the President said 90% of the jobs “saved or created” would be in the private sector. The jobs the administration actually can pinpoint, however, have been overwhelmingly in government.

    One thing that the stimulus has created without any dispute, though, is an unprecedented budget deficit. This past year, the budget shortfall was $1.4 trillion, nearly four times the deficit of the previous year. And Congress will soon be forced to increase the federal debt limit that already sits at $12.1 trillion. This will be the fifth increase in the debt limit since Democrats took control of Congress just three years ago.

    The deficits created by the stimulus are not only unsustainable in the long-term, but have grown so large they threaten economic stability today. As the big-government approach has predictably let Americans down, it’s time for a new approach. That’s why, working with my Republican colleagues, I have introduced a pair of measures that would pull the plug on the ill-fated stimulus and put into action real incentives for economic growth.

    For starters, our REBOUND Act, H.R. 3140, would rescind the large unspent portions of the stimulus bill, as well as the TARP bailout funds, to pay down the deficits. And our Economic Recovery Act, H.R. 470, would offer across-the-board tax relief to American families. The legislation reduces economic burdens on businesses, small and large, so they may expand and hire workers once more. And finally, the legislation includes spending reductions, because downsizing an overgrown Washington can no longer wait.

    Our solutions revolve around a basic principle that it is people, businesses, and markets that create jobs, not government borrowing and spending. We can talk all day long about double sealing our windows for the winter, but we won’t see real recovery until the Vice President and this administration recognize that government can only do so much, while the economic potential for unburdened and economically empowered Americans is unlimited.

    Posted by Big Governement
    December 9, 2009
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    Pork Report, December 8, 2009: Downhill Edition

    Alaska’s $680 million bridge to nowhere still a state priority

    17,000 Medicaid patients put on waiting lists for medical services in Maryland as the state misspends $98 million including paying for services for dead people

    Medicare loses $60 billion to fraud every year

    Democrat political consultants receive millions of dollars in federal stimulus funds; Millions more spent to heat a near-empty shopping mall, to search for fossils in Argentina, for socially conscious puppet shows, and to study the genetic makeup of ants

    Restaurant with a long record of not paying its taxes receives $143,988 in federal and state funds for renovations, including a “spiffed up” facade and a “striking awning”

    Federal dollars hit the slopes: National Science Foundation funds research on how to design skis

    Posted by Big Governement
    December 8, 2009
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    Obama and Democrat Leadership: Out of Touch and Desperate

    President Obama’s meetings at the Senate on Sunday, much like his visit to Copenhagen this week, are not indicators of inevitability; they are portents of panic.  The reports coming out of the closed door, Democrats-only, meeting of internal divisions that are still irreconcilable, despite the high rhetoric of historic moment, only make the point more vividly: can you say “desperation”?

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    The sensible Democrats know they are in trouble.  They know the American people have lost confidence that the Administration and Congress share their priorities.

    While polls consistently show that Americans are increasingly concerned about jobs, reviving the economy, and managing our deficits, the Democrats fixate on health care, a relatively low priority for most Americans and anathema for many in this form.  The reforms the Democrats push are themselves unpopular, and for good reason.  Americans know that a government takeover of health care will diminish the quality of care, reduce our ability to control our treatment options, and drive up the premium costs for many Americans.  It’s not just the health care system that will suffer, but proposed reforms will also cripple one of the few sectors that have been creating jobs during the recession, create multiple new taxes and penalties, and further hamper the economy by creating massive new debt and entitlements.

    At the same time, the Obama EPA stands ready to declare carbon a pollutant while Pres. Obama commits in Copenhagen to grandiose reductions in carbon use.  Undoubtedly “climate change” is another  “crisis” that Rahm Emmanuel doesn’t want to let go to waste, but the presumption of consensus crumbles as scientific certainty morphs into a political put-up job.  Regulating carbon is a control-freak, revenue-sucking bureaucrat’s wet dream, but it is also the average American’s definition of insanity.  It may be change, but it’s not the change Americans voted for.<

    What can save the Democrats?  Not much.  They no longer have a shrewd and sensible leader like Bill Clinton, who would listen to a Dick Morris and understand the need to move to the middle, manage the party’s extremist elements, control government and deficits, and genuinely encourage private sector growth.

    Instead the Democrats are manipulated by rabid, loony left activists who won’t tolerate compromise on their utopian, authoritarian impulses, and an arrogant, ideological leadership that will buy, seemingly at any price. the votes of Members and Senators to get the game-changing legislation it wants, even if that means losing the mid-term elections.

    Moderate Democrats are terrified for their seats short-term, and longer term for their party and the country.  Obama’s visit to the Hill was both an indication of the Democrats’ continued difficulty in ramming unpopular health care legislation through, despite their majorities and positive spin, and the determination of the left to get this passed at any cost – they cannot see wasting their majorities, even if what they want is not what the country wants.

    The moderate Democrats know this is wrong, but are still consoling themselves by drinking the Democrat leadership’s delusional Kool-Aid: that August was a manipulated fluke, that intensity of concern is not now what it was then.  Their leadership knows to exploit the fact that people are busy during the holidays, and Members are not home, to encourage their nervous Nellies to believe that it really won’t hurt them to impose these tremendous burdens on the American people.

    Who can save the Democrats and prevent legislation that is so out of line with what America wants?  Only the American people.  Big business won’t do it – they’re in bed with the administration on these efforts, or at best in keeping their heads down and hoping someone else will have more courage than they.

    But imagine the effect of another Rostenkowski moment – where furious seniors pursued Rep. Dan Rostenkowski to his car in their disgust over the catastrophic health care bill — only this time it’s Harry Reid.  Also feared  is an “I’m mad as hell and I’m not going to take it any more” uprising where the normally quiet silent majority – the moderates, the independents, and ordinary seniors, women, and small businesses –rise up and make clear that August was no fluke, writing letters all December (far better than calling or emailing) again and again.  And though media will try to ignore it, Members will notice when there are well attended rallies like the one Sen. Tom Coburn is encouraging in DC on December 15th.

    If Americans produce one final push to show that it’s not over, that the intensity today is greater than ever, that indeed the American people are paying attention, will hold policymakers to account, and are willing to speak loudly to defend their basic rights, then that would embolden enough votes that we could stop the insanity, defeat this monstrosity of a bill, and get a chance to pursue genuine reforms that might instead actually improve the health care system without hurting jobs, the economy, or our children’s futures.