CONSERVATIVE POLITICAL COMMENTARY
Pro-Constitution, Anti-Globalist, Anti-Socialist, Anti-Communist, and usually with an attempt at historical and economic context ************************13th Year ----- 2009-2021*****
Showing posts with label economy. government spending. Show all posts
Showing posts with label economy. government spending. Show all posts

Friday, May 19, 2017

Our Betters Keep Getting Worse

By Eddie Howell
The leaders of America, as a whole, are failing to improve the lot of our country. We are witnessing what looks like national suicide in progress, abandonment of the rule of law, collapsing “higher education” run by gutless fools and populated by arrogant fascists. Also, we've seen open borders, deliberate release of vicious criminals, deliberate importing of jihadist murderers, and more by people who seem to demand our respect for their superior wisdom and judgment.

Sen. Schumer, Official Portrait
The main exception to this miserable state of affairs among our so-called betters is Donald J. Trump, whose intention is to drain the swamp these lazy louts, crooks, and influence peddlers have created. There is scarcely an area of American life that has not been damaged or hampered or tainted by the political left and their unhinged war on honesty, conservatism, and freedom. The founding principles of America are left to languish in a sea of death, debt, dishonesty, and cronyism. People with Ivy League credentials who claim the leadership positions very often cannot manage their own affairs but are too willing to micromanage other peoples' business.

The ruling class has become nearly as bad as the mafia, complete with criminal activity. The mafia at least is not responsible for leading and protecting the nation or setting a moral example. They are a bad thing, but they are trying to, in some sense, give people what they want. The Left gives some people what they want by means of stealing from others. They probably think they're like Robin Hood, but Robin Hood, whatever else he was, was a thief and essentially part of the corruption.

The main goal of the elite today is to destroy Donald Trump. This now overrides all other considerations for the mainstream media, the liberal universities, Hollywood, the Democratic Party, and the left in general. The anti-Trumpers are stirring up hostility against their enemy with wartime-like propaganda, with such a slanted negativity against the president that a study by Harvard (!) shows it's much more negative than anything thrown at the previous three administrations.

The enthusiasm to investigate Trump is high, with some clamoring for impeachment. But where was the enthusiasm to investigate when it came to investigating the numerous scandals of Obama and Hillary? Real, demonstrated crime was left alone, while seemingly baseless concerns about Trump are made into a constitutional crisis. Someone Trump once associated with had some business dealings that involved a Russian bank. Where's the crime? Where's the evidence? Apparently, it's so well hidden that no one can find it, so we must employ a special counsel. The same Mr. Trump who is presented in media as an inept oaf apparently is so clever he can concoct elaborate plots to hide his actions.

The people who are not destroying the country, as the elites are, would be the factory workers, skilled tradesmen, professionals, business people, and others who refuse to be part of the elites' political, social, and moral cancer on America. They are the ones helping to keep our nation's head above water, while the influential go about raising the skyrocketing debt, killing babies, and regulating us to death. Where are the national leaders who (1) genuinely want the best for Americans, and (2) recognize and observe moral and legal boundaries? They are not plentiful in education, government, journalism, or entertainment.

“For everyone to whom much is given, from him much will be required; and to whom much has been committed, of him they will ask the more.”* What we're getting from the privileged is disdain for America and ordinary people, a massive overdose of political lies and BS, destruction of our money and economy, and an attachment to the idea of globalist socialist dictatorship. The “much” they are giving is not in line with the spirit of that quoted statement.

The warmongers are getting louder. Russia, the leftists' formerly admired country, is now so bad that some want to risk war. Any administration official who has spoken to any Russians is now considered suspect. Everyone in government should think about supporting President Trump against ISIS and dealing with North Korea, without urging any kind of elective nation-building or regime-change interventions.

What's most needed among the establishment types, is the attitude of understanding and striving to live up to real responsibilities, and recognizing that special interests aren't so special that everyone has to love them. We don't need to all be friends, but we need to respect our country and appreciate its history.

What the left wants is to tear down our history and adopt the globalists' view that the American Revolution was a mistake, all traces of the Confederacy must be obliterated, all religion removed from the military and all aspects of government. Promotion and celebration of transgenderism and homosexuality are required, but the Ten Commandments are evil itself, and our children must be protected from them. In other words, the elites are turning our society's system of values upside down.

For all their faults, previous generations of American leaders have stood up for America and worked for the betterment of American families and society, and maintained a responsible place in the world for the United States. At great hardship and sacrifice, which can hardly be comprehended by most of the people living in the U.S. today, Americans have dealt with slavery, the Depression, and two world wars and several additional conflicts and been willing to follow responsible leadership.

Those who find themselves in positions of responsibility and authority, or want to do so some day, need to consider the good of the nation and the American people when working out their strategies. Is the gaining of power and wealth the main thing? Or is genuine service to be preferred even though it may not pay as well?

Today in America, we have the hard, loud left, and a lunatic fringe considered far-right. But we fortunately have the moderates, liberals, libertarians,and conservatives of the great middle who prefer not to live in an upside-down world. I say let's leave the upside-down to “Stranger Things.”



*Luke 12:48b, NKJV, words of Jesus Christ.

Wednesday, December 4, 2013

Repost: On Wealth and Income Inequality

Ludwig von Mises
Ludwig von Mises (Photo credit: Wikipedia)
[I am re-posting this article which originally appeared here on November 9, 2009, with minor revisions. Because of the recent increased interest in income and wealth inequality, addressing this topic seems to be especially needed now.]


By Eddie Howell

“Those who would give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” — Benjamin Franklin [1]

When tougher economic times come, as at present, we hear more about how we need to redistribute wealth and income to help those who have less. This is especially true under Barack Obama, who is on record as favoring redistribution. For him, this should have been part of the Supreme Court’s decrees during the civil rights movement of the 1950’s and 1960’s. We are fortunate that it wasn’t, because that would have brought on a constitutional crisis and, if serious redistribution happened, the collapse of our economy.

Equality of wealth and income in a nation has never been and never will be a fact. It is a grasping at straws and striving after wind to attempt to realize it. If it could be made real, it would result in universal poverty, economic depression and degradation of everyone’s standard of living.

When people observe the different economic levels among people, their sympathy for those at the lower part of the spectrum sometimes leads them to believe that wealth should be confiscated from those at the upper end, and distributed to the less wealthy. Sometimes this motive drives political movements and tax policy. In some people’s religious efforts to help and serve the poor, they call upon government to help in their projects through grants, tax changes, etc.

We do not wish poverty on anyone, but we do recognize that some people are going to be poorer and some richer than others. Poverty is not necessarily a permanent or long-lasting condition, nor is wealth. There are opportunities and hazards which can sometimes change things quickly. I want to discuss reasons that forced redistribution of wealth, as advocated by some left-wing or liberal activists is a terrible and destructive idea.

Safety Net
To start, I will say that we need some kind of safety net to prevent and correct conditions of life-threatening poverty, i.e., hunger and homelessness. For those unable to work and support themselves, we rightly have programs to help them. For the homeless, the focus should be, not only on helping them in their homeless condition, but also in striving to help them to earn their way out of that condition. Most welfare help, other than for those permanently disabled, should be of a temporary and emergency type.

A High Standard of Living
According to distinguished Austrian School economist Ludwig von Mises:
“Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulates riches …

“This country enjoys the highest standard of living ever known in history because for several generations no attempts were made toward ‘equalization’ and ‘redistribution.’ Inequality of wealth and incomes is the cause of the masses’ well-being, not the cause of anybody’s distress. Where there is a ‘lower degree of inequality,’ there is necessarily a lower standard of living of the masses.” [2]

In general, it is unjust for the government to take the fruit of a person’s labor and give it to someone who has not earned it. It is, in fact, legalized thievery if it goes beyond a minimal reasonable amount. The best role of government in preventing and dealing with poverty, beyond a minimal safety net, is to maintain an environment of free market competition and to punish fraud and abuse.

Capitalism Is Not the Problem
Here is a brief conversation between Milton Friedman and Phil Donahue about the supposed drawbacks of capitalism:



There are so many examples of government interference and manipulation in the markets today that hardly any transaction completely escapes. Thus we have constant cost overruns, extreme tax rates, overbearing regulation and low incomes for many.

Any serious attempt to equalize wealth or income requires the imposition of socialism and the loss of economic freedom:
“The only alternative to this financial pressure as exercised by the market is direct pressure and compulsion as exercised by the police power. The authorities must be entrusted with the task of determining the quantity and quality of work that each individual is bound to perform. As individuals are unequal with regard to their abilities, this requires an examination of their personalities on the part of the authorities. The individual becomes an inmate of a penitentiary, as it were, to whom a definite task is assigned. If he fails to achieve what the authorities have ordered him to do, he is liable to punishment.” [3]

Inequality Is Not Unjust, and Is Necessary
The market economy requires an inequality of wealth and income. The pressures of the market serve as incentives to work, save, improve, advance, learn, and innovate. Without these incentives, under a socialist system, the incentives are toward gaining political power by exercising more control over others. The tendency is always to “innovate,” not by research, and more efficient production and marketing methods, but by more onerous requirements and expanding government power. This is always the tendency of bureaucracy. Bureaus try to perpetuate themselves by finding more things to regulate and more ways to control people.

Consider the fact that when the authorities determined that environmental pollution was a problem needing attention (as it was), the number and kind of regulations grew rapidly. Having achieved a good deal of cleaning up, government sought ever more authority to regulate and rule, and more hazards were “discovered,” even to the point that carbon dioxide, the gas we breathe out, has now been declared a pollutant, and the objectively stupid cap and trade legislation is actually being considered. We have reached the point where the “cure” is truly worse than the disease.

The same kind of bureaucratic growth tends to happen whenever government can take authority over activities that under capitalism are part of the private sector.

Private Sector Abuses Involve Government
The main abuses by the private sector have occurred when companies, professional associations, and unions and others have succeeded in getting government to enforce their economic interests, to the disadvantage of others, and in defiance of market forces, as discussed here by Ayn Rand with Mike Wallace in 1959:



Because of private-sector interests colluding with government, we have a lot of large and smaller evils such as:

1. Abuse of eminent domain: Taking property from citizens to provide to other citizens for their private gain, including spending public funds to finance sports arenas and events.
2. Handing out government funds to lure businesses to locate in a particular area.
3. Using the power of the Fed and the Treasury Department to bail out large private banks and take over private companies.
4. Government granting authority over a given profession such that a private association’s pronouncements have the force of law (e.g., AICPA, AMA, and ABA).
Also, these groups can restrict education and practice in these professions.
5. Labor unions employing government help to shake down employers for more benefits, beyond what the market alone would warrant.

If these entities could all operate without the force of government, outside of dealing with crime and abuse, the market would determine the results of economic activity. And the market can do a much better job than government. The more government control we have in any area, the less freedom. “That governs best which governs least.”

Liberal Offers
A major mistake people make when they accept the liberals’ claims that the government must provide what they need, is that they somehow trust politicians more than they trust private enterprise. Politicians are definitely not more trustworthy, nor, as a group, better-motivated than businessmen. Nor are they more knowledgeable, and generally they are much less knowledgeable about running a business operation of any kind. So when they set about to determine everyone’s income (think: pay czar), and wealth (IRS), we need to be prepared to work at gunpoint. Remember, current government officials think it will be all right to imprison people who refuse to buy insurance. That’s how much respect they have for our freedom.

Low-income people have many opportunities in this country. True, a lot of better opportunities are open to people who have inherited wealth or who are especially talented in some high-paying skill. There is always someone who has more and who does more than his fellows. But these are among the differences that make life interesting, and encourage people to strive for improvement, and to appreciate their accomplishments.

Many of the poorer people have items considered luxuries not long ago. Many items people of modest means have are of comparable quality to items rich people have. Even after all the liberals’ attempts to destroy incentive, most people want to try to succeed on their own, and don’t want a handout unless life leaves them no other choice. For those who need help, many charitable operations are at work. The Obama Administration hurts this by planning to reduce income tax deductions for charitable contributions, and allowing the economy to languish, making it harder for people to contribute to charities anyway.

Liberals buy votes by promising government benefits to “victimized” groups. People in these groups are often willing to give over control of much of their lives to the authorities in order to receive these promised benefits. The benefits prove to be less than expected, and less as time goes by, but these voters are trapped into thinking that they must rely on government, so they keep voting for those who make the promises.

Conclusion
The demagoguery about “income and wealth inequality” is appealing to some people who think they should be entitled to what others have, and that government should give it to them. It also appeals to people who want to be in charge of the redistribution, whether to gain power over others, or to feel good about themselves. Class envy is the very lifeblood of "liberalism" today, as it is with communism. The exploitation of the “class struggle” is the whole process. Clinging to that narrow and misguided view is what has produced much of the economic and social failure in our society. The sense of entitlement and victimhood encouraged by liberals, their false promises, and exploitation of the powerless drive much of the feeling of helplessness and despair around us. People who should know better, including politicians, fall for the liberal premises that lead to frustration and discontent. Liberals have little to offer as economic solutions. The results of their tax-and-spend and welfare-state policies can be seen in places like Michigan and California, and are coming soon to a state near you.*

*By "liberals" and "liberalism" in this article, I mean liberals and liberalism as understood today, not classical liberalism. Mises refers to liberalism in the classic tradition, which is something very different.

[1] Quoted at Goodreads.com.

[2] Ludwig von Mises, “Inequality of Wealth and Incomes,” Ideas on Liberty, No.1. Irvington, N.Y.: Foundation for Economic Education. (May 1955) 83-88. Reprinted in Essays on Liberty, III. Irvington, N.Y.: Foundation for Economic Education. (1958)123-31. Previously found on Mises.org, at http://mises.org/EFANDI/CH9.ASP, but the link is currently not available (as of 12/04/13).

[3] Ludwig von Mises, Human Action: A Treatise on Economics, Scholar’s Edition, Ludwig von Mises Institute, Auburn, Ala., 1998, 285-286. Ebook available at Mises.org. Excerpt at http://mises.org/humanaction/chap15sec7.asp.

Further reading: from Ludwig von Mises, Liberalism in the Classical Tradition, "5 The Foundations of Liberal Policy: The Inequality of Wealth and Income," German edition published in 1927, English 1985. Ebook available for viewing and download at http://mises.org/liberal.asp    
 This section at http://mises.org/liberal/ch1sec5.asp

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Monday, May 28, 2012

Hey, Big Spender . . . America’s on to You!


Dreamstime.com
President Barack Obama’s claim to fiscal responsibility is nothing short of ludicrous, although he makes the claim in seriousness. Based on a report by MarketWatch columnist Rex Nutting, which is based on seriously flawed data, Mr. Obama claims to have presided over a period in which  “federal spending, since I took office, has risen at the slowest pace of any president in sixty years.” In fact, the Obama Administration has increased spending at a robust pace, and by the greatest amount ever by far (video here).

According to Brian Darling at Heritage Foundation, while Politifact rated Nutting’s article as “mostly true,”

What Politifact must have missed is a very important data point: President Obama signed most of the spending attributed to President George W. Bush’s last year in office, which was assigned wrongly to Bush in Nutting’s piece. (Heritage’s Emily Goff and Alison Fraser set the record straight on The Foundry.)

Nutting argues that President G.W. Bush’s second term spending bills from Fiscal Year 2006-2009 averaged 8.1% and President Obama’s annualized growth averaged 1.4%.  The reason why Nutting included FY 2009 is because it was “the last of George W. Bush’s presidency — federal spending rose by 17.9% from $2.98 trillion to $3.52 trillion.”  This assumption is incorrect and dishonest.  This flaw in Nutting’s analysis is the reason why the Obama numbers are wrong and Nutting’s whole piece is based on flawed data.
Further, according to the article (citing Congressional Quarterly), Congress delayed the Fiscal 2009 Omnibus, hoping for a Democratic Congress, to avoid George W. Bush’s threatened vetoes, and to gain an opportunity for further bloated spending. So this spending is attributable to Obama’s watch, not Bush’s.

Also, the Nutting article mishandles the fact that TARP spending was under Bush and some TARP recovery happened under Obama.

A Wall Street Journal article dated October 13, 2010 includes a table that indicates that federal spending rose 21.4% from 2008 to 2010, with domestic items leading the way. Unemployment benefits rose 240.4%. Defense spending rose 12.1%.

The outrageous spending increases were a major factor in the GOP Congressional victories in 2010. But with Obama in office and Democrats controlling the Senate, not much has changed, and we are in line for trillion-dollar annual deficits for several years to come unless more serious changes are made. The current situation cannot continue without bringing on another recession at the least, and financial collapse likely later.

The Mitt Romney campaign is correct in saying 
“For the last three-and-a-half years, President Obama's liberal policies of wasteful spending and skyrocketing debt haven't lived up to his own promises to control our nation's mounting deficits. As president, Mitt Romney will finally change Washington and stop passing our financial burdens on to the next generation.” -Andrea Saul, Romney Campaign Spokesperson (Quoted in Chicago Sun-Times)
The Sun-Times quotes President Barack Obama in the same article as follows: 
President Obama, In 2009: “Today I'm Pledging To Cut The Deficit We Inherited In Half By The End Of My First Term In Office.” OBAMA: “[T]oday I'm pledging to cut the deficit we inherited in half by the end of my first term in office. This will not be easy. It will require us to make difficult decisions and face challenges we've long neglected. But I refuse to leave our children with a debt that they cannot repay - and that means taking responsibility right now, in this administration, for getting our spending under control.” (President Barack Obama, Remarks, Washington, D.C., 2/23/09)
But that pledge apparently has expired.

Later, the White House came up with the pathetic excuse that they didn’t realize how bad the situation was when the president took office. I say they needed, and still do need, some competent economists.

What’s needed is not “slower growth” in spending, but rapid and serious cuts. Four more years of Obama in the White House will bring us four more years of out-of-control government in the Executive Branch. It is well established by now that liberals will never cut spending and will always want higher taxes. That’s just the way they are. This cannot be changed.

Recent polls show that voters are increasingly skeptical of Obama’s ability to improve the economic situation, and are more trusting of Mitt Romney. Examples:

Rasmussen, 05/15/12:  58% of likely voters trust Romney more on economy, 39% trust Obama more.

In the poll, 55% say the economy would get better over the next four years if Romney was elected, compared with 46% who say it would improve if Obama were re-elected. Twenty-seven percent say the economy would get worse in a Romney first term, compared with 37% who say that of an Obama second term.
Mitt Romney definitely has the better economic plan, and now appears to have an advantage on economic issues with Americans.
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Wednesday, December 7, 2011

Some Comments on President Obama’s Economic Speech of December 6, 2011

President Theodore Roosevelt. Photo via Wikipedia
The president spoke in Osawatomie, Kansas on Tuesday, December 6, 2011, on his version of Theodore Roosevelt’s “New Nationalism,” essentially trying to make a case for a more socialistic approach to the economy, with the idea of government striving to make everything “fair” and supposedly advancing the middle class.

The comments cover a good deal less than the entire speech (video found here and here), but I believe they address the main ideas he expressed. The text is found at the Washington Post website. The president’s words are in bold, mine are not.


For many years, credit cards and home equity loans papered over the harsh realities of this new economy. But in 2008, the house of cards collapsed. We all know the story by now: Mortgages sold to people who couldn’t afford them, or sometimes even understand them. Banks and investors allowed to keep packaging the risk and selling it off. Huge bets – and huge bonuses – made with other people’s money on the line. Regulators who were supposed to warn us about the dangers of all this, but looked the other way or didn’t have the authority to look at all.

It was wrong. It combined the breathtaking greed of a few with irresponsibility across the system. And it plunged our economy and the world into a crisis from which we are still fighting to recover. It claimed the jobs, homes, and the basic security of millions – innocent, hard-working Americans who had met their responsibilities, but were still left holding the bag.

The president conveniently leaves out the fact that banks were under heavy pressure from the government to make these loans, and Fannie and Freddie purchased them. The Democrats in Congress, led by Barney Frank, would not permit the needed regulation of Fannie and Freddie, claiming that they were on sound footing. Financial companies issued extremely risky derivatives, which should have been stopped by government regulators but weren’t, and now, banks have it set up where derivatives take priority in bankruptcy, over the interests of investors. See Gary North’s informative article here.

Community agitators like ACORN (which previously employed Barack Obama)  increased pressure on banks to make the bad loans. The “breathtaking greed” was driven and incentivized by the government through purchase guarantees and “affordable housing” pressure. Banks shared blame as well, but it was primarily a government- and Federal Reserve-caused situation. The bailouts (under Bush’s administration) set the tone for further legislation handled in an “emergency” fashion, (Obamacare, cap and trade, etc.), with little to no debate and in the dark of night, with 1,000-plus-page bills which were not read and perhaps not yet entirely written when voted upon. This is the fault of government.

But this isn’t just another political debate. This is the defining issue of our time. This is a make or break moment for the middle class, and all those who are fighting to get into the middle class. At stake is whether this will be a country where working people can earn enough to raise a family, build a modest savings, own a home, and secure their retirement.

Obama is correct that the middle class is at stake. It is Obama’s policies that are destroying the middle class through ensuring massive unemployment and an economic environment that discourages business growth and hiring. His answer is higher taxes and more spending. More “stimulus,” when the stimulus to date is proven ineffective.

Now, in the midst of this debate, there are some who seem to be suffering from a kind of collective amnesia. After all that’s happened, after the worst economic crisis since the Great Depression, they want to return to the same practices that got us into this mess. In fact, they want to go back to the same policies that have stacked the deck against middle-class Americans for too many years. Their philosophy is simple: we are better off when everyone is left to fend for themselves and play by their own rules….

According to Obama, the government needs to make sure a good outcome is experienced by all who “work hard.” The task of government in the economy is punish fraud and abuse, and to provide an appropriate, rather than oppressive, tax and regulation environment. The Federal Reserve has harmed the economy through massive money printing and artificially low interest rates that discourage investment and saving. The government should not interfere with the free market, which they constantly do through corporate welfare and “crony capitalism” which is actually not capitalism but more like fascist corporatism.

They should stop all subsidies, bailouts, and special tax treatment, and trust the free market, in which companies and individuals pursue their own self interest without government interference.

Now, just as there was in Teddy Roosevelt’s time, there’s been a certain crowd in Washington for the last few decades who respond to this economic challenge with the same old tune. “The market will take care of everything,” they tell us. If only we cut more regulations and cut more taxes – especially for the wealthy – our economy will grow stronger. Sure, there will be winners and losers. But if the winners do really well, jobs and prosperity will eventually trickle down to everyone else. And even if prosperity doesn’t trickle down, they argue, that’s the price of liberty.

It’s a simple theory – one that speaks to our rugged individualism and healthy skepticism of too much government. It fits well on a bumper sticker. Here’s the problem: It doesn’t work. It’s never worked. It didn’t work when it was tried in the decade before the Great Depression. It’s not what led to the incredible post-war boom of the 50s and 60s. And it didn’t work when we tried it during the last decade.

It’s called free market capitalism and it does work and will work whenever it’s allowed to operate. The reason the Great Depression got so bad and lasted so long is that government tried to fix it. There was a depression in 1920 that started out as bad as the one in the 1930’s, but lasted less than two years, because neither the government nor the Fed did anything to interfere. They didn’t enshrine the mistakes as they did in the 1930’s and in the 2008 collapse. The government should have simply let the recession run its course, and by now, bad debt would be liquidated and we’d be back to normal growth. But no, politics trumps all. See Tom Woods's eye-opening video on the 1920 depression here.

When Obama says “It’s not political,” he would be more accurate in saying, “It’s not just political, it’s very, very political.” He is the servant of the unions, the radical environmentalists, and the socialist left.

This speech, delivered in the form of populist rhetoric, is an attempt to make the case for socialism. Theodore Roosevelt was something of a “Progressive,” as some liberals like to be called today, but people don’t generally understand that Progressivism is the belief that economic, social and cultural decisions that people traditionally make for themselves, should instead be made by a group of elite “experts,” acting for all. Thus we got big government, big bureaucracy, less freedom, and even eugenics. Now we have abortion, and may soon have more government-rationed health care and government-rationed or mandated who-knows-what.

Remember that in those years, in 2001 and 2003, Congress passed two of the most expensive tax cuts for the wealthy in history, and what did they get us? The slowest job growth in half a century. Massive deficits that have made it much harder to pay for the investments that built this country and provided the basic security that helped millions of Americans reach and stay in the middle class – things like education and infrastructure; science and technology; Medicare and Social Security.

Actually, we had strong job growth, compared to today. The deficits came mainly from wars that started after 9/11/2001 and continue today. And Bush’s worst deficits pale in comparison to those racked up under the Obama Administration.

Obama wants more “investment,” i.e. government spending, in education and infrastructure. But if the economy could just be allowed to recover, these issues would be taken care of without massive borrowing and endless debt.

We simply cannot return to this brand of your-on-your-own (sic.) economics if we’re serious about rebuilding the middle class in this country. We know that it doesn’t result in a strong economy. It results in an economy that invests too little in its people and its future. It doesn’t result in a prosperity that trickles down. It results in a prosperity that’s enjoyed by fewer and fewer of our citizens....

According to Obama, we need government in control to make sure the incomes and outcomes are what they should be. But experience has shown that government is hardly qualified to run anything outside its actual constitutional responsibilities. They are poorly qualified to give guidance on running business or the economy, when their own business and their own finances are out of control. It’s the private sector that needs to be able to invest, not the government. But politicians put many roadblocks in the way: bans on energy development and oppressive EPA regulations, just to name two.

America can’t afford four more years of Obama. That should be the focus of the GOP message. A few more years down the current path and we’ll be worse off than Greece.

Wealth and income inequality is not the problem. It’s simply a convenient propaganda component to stir up class envy, which, I repeat, is the very life blood of liberalism, and class warfare is its process.

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Wednesday, October 26, 2011

Government Policies Are Bringing About America’s National Decline

Occupy Wall Street protester.  Photo: Dreamstime.com
The New York Times reports that “a deep sense of economic anxiety and doubt about the future hangs over the nation, according to the latest New York Times/CBS News poll, with Americans’ distrust of government at its highest level ever.”

Further, “Not only do 89 percent of Americans say they distrust government to do the right thing, but 74 percent say the country is on the wrong track and 84 percent disapprove of Congress — warnings for Democrats and Republicans alike.”

The distrust of government and impatience with the status quo is reminiscent of President Jimmy Carter’s “malaise” period. The cure for the “malaise” turned out to be serious changes in economic policy, a sense of cheerful optimism, and pride in America, things championed by President Ronald Reagan.

Today, the Tea Party represents a responsible citizen movement with actual ideas for improving the nation’s economic situation, and actions taken toward accomplishing an improvement. The mob known as Occupy Wall Street (or Occupy ---) demands that the government redistribute the wealth of the rich to them in the form of free college tuition, housing, health care, etc. They are in sympathy with Europeans who have demanded to keep their government benefits uninterrupted, despite the fact that their nations' governments are on the verge of default and bankruptcy.

As Chris Adamo at Renew America points out,
Throughout Europe, the spurious and unsustainable promises of socialist utopia, Ponzi schemes all, are collapsing, leaving entire segments of the population in the throes of riots and revolt. The few remaining adults on the continent are faced with the reality that the massive funding needed to prop up the sham was bound to eventually run out, and now no longer exists. As a result the dream of socialist beneficence simply cannot keep going, no matter how hysterically the short-sighted and morally vacant masses demand it.
These OWSers seem convinced that there is plenty of money to go around, if only the wealthy would “pay their fair share.” More likely, they have no clue about it except they don’t like the idea of people having more than they have – unless they’re celebrities. Actually, America’s public debt obligations are so huge that even if the rich gave up all their annual income to be redistributed, it would not even begin to solve the problem.

The challenge the GOP candidates face is this: Somehow, face up to the fact that nothing being done by the Obama Administration, nothing being suggested by OWS, and nothing the “super committee” is likely to come up with will help in the least. In fact, any of these are making and will make the situation much worse. The results of the 2012 presidential election will in all probability mean the difference between economic and currency collapse, or a real chance at a recovery that everyone can recognize as a recovery.

How the OWS protesters could support Barack Obama in view of the economic damage his administration has done, can be explained only by the fact that the protest’s money and energy is coming largely from people who have no use for America as it has been anyway, and would like to see the whole system fall. Communists, Socialists, Nazis, and fascists are eagerly awaiting what they hope will be the collapse of capitalism and the inauguration of a socialist paradise.

Economically, what they want is not only not feasible, it is not possible, unless they want something like Soviet communism, which is bound to fail. This involves the end of individual liberty and the institution of slavery. We are on Friedrich Hayek’s “Road to Serfdom” already; we need to reverse this, not accelerate it. People who are willing to trade their liberty for government “benefits” will be disappointed if they get their request.

See short video depicting the ideas of Hayek’s classic book in cartoon form here. The presentation is a bit dated, but the ideas are not:


Class warfare, stirring up the mob against the supposedly unjust success of the wealthy is the classic appeal. Liberal agitators, and probably the mainstream media, are just waiting for more violent outbursts to occur.

People who want some corrections made, but not a violent upheaval, ought to consider the fact that it is possible to address America’s economic situation in a responsible way that would bring about substantial improvement fairly quickly. This involves electing a competent Republican president and a Congress that will get rid of the “super committee” and reverse their results, and face up to the task of cutting the size and scope of the federal government and reining in the ridiculous spending.

At the least, it should be recognized that Obama has accomplished nothing positive for the economy. Actually, he has brought about much economic, social and cultural destruction. Short of direct divine intervention, four more years of Barack Obama would bring about the tragic failure of American freedom and prosperity for many years to come. That’s how serious our plight is.
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Tuesday, August 16, 2011

Our Tax Dollars at Work: Obama’s Bus Tour

Not Obama's bus
No one doubts that an incumbent officeholder has some advantages when running for re-election. President Obama, of course, has the power of his office working for him during the presidential campaign. But to what extent is this advantage ethical or even legal? It would surely be hard to get anywhere with legal action against Obama’s campaign activities, but one might question a couple of the excesses. I mean (1) his supposed need for  two taxpayer-funded buses costing $1.1 million each on which to make his (2) taxpayer-funded campaign tour.

The following video, via Dakota Voice tells something about this:


The president has carped and lectured on excesses of spending to private jet owners, Las Vegas vacationers, etc., but he has seen no reason not to send Michelle and friends on a vacation to Spain, where they had to clear public beaches to allow the First Lady’s group to frolic in the sand, nor to use Air Force One for personal “dates” with the First Lady in New York, Europe, or wherever.

I haven’t heard from anyone who doubts that the President’s “listening tour” is simply a campaign tour, or that the ultra-fancy bus is a campaigning vehicle. The expenses of these things should be paid for by political supporters, not taxpayers in general.

Of course, the president can also get free TV time whenever he wishes, but by now, he may be reluctant to use it too much, since each appearance lately seems to be followed by a drop in the stock market, and also his poll numbers.

I suppose the president believes in public funding for (his) political campaigns. But where does this cross the line? Of course, all this is a minor issue compared to the economic threats currently facing our country. But Obama’s tactics do not seem to represent financial caution or much concern about the public treasury.

Further reading:

Emily Miller, “MILLER: Obama’s Bus Force One,” 08/15/2011, The Washington Times.

Illustration: Public domain image courtesy of The Crittenden Automotive Library.
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Sunday, May 15, 2011

Paul Ryan-type Budget Plan Is Best Hope for Budget Sanity; Boehner Should Maintain His Strong Stand

Rep. Paul Ryan (R-WI), official portrait
House Speaker John Boehner of Ohio has said that there will be no raising of the debt limit unless serious budget cuts, involving “trillions, not billions,” accompany any such legislation. Here is one area the GOP must stand firm on. The hope that they would is the main thing that contributed to their 2010 election success.

The Democrats have shown that they really don’t want anything beyond simply nominal cuts, those being cuts that won’t matter in the actual spending situation. Republicans have, I think, been too shy about the idea of shutting down the government, if the need should arise.

As I mentioned recently, the House GOP majority must assert its power over the budget if any actual progress is to be made, shutdown or not. If the GOP doesn’t approve it, it can’t happen. If somehow a GOP budget is passed by Congress, it would still face a possible presidential veto. Boehner needs to maintain his position that there will be substantial cuts, or no debt limit increase will be approved. Period.

Americans for Limited Government posted the following video of remarks by Boehner to the Economic Club of New York, and added their own comments:


As reported by The Hill,
White House press secretary Jay Carney said Boehner was being inflexible by refusing to move from his opening position that the nation’s borrowing limit should only be raised with a deficit-reduction deal built on trillions in spending cuts and no new taxes…. “Maximalist positions do not produce compromise,” said Carney, who described Boehner as restating his “starting position” with his New York speech. [1]

It would be nice to get Democrats on board with the kind of cuts Boehner has in mind, but it will likely require a stand of inflexibility, at least no compromise on major points, to get any kind of budget that will keep our economy viable over the next few years, let alone growing. Democrats have very little in the way of ideas to grow anything except debt and government. They have demonstrated that they are unable to improve the employment picture to any significant degree.

Rep. Paul Ryan (R-WI) has done admirable work in producing his “Plan for Prosperity,” and, while it may need some tweaking here and there, it currently represents one of the few, if not the only, serious plan to address the actual problems, including entitlements. Democrats are anxious to use his plan to scare seniors into thinking that Medicare is going away, when in fact, if the types of changes he proposes are not implemented, Medicare will have to go away, because it will not be possible to fund it. Medicare, Medicaid, and Social Security represent tens of trillions of dollars of unfunded liabilities, which do not show up on the formal budget.

A Ryan-type plan that seriously and credibly addresses the entitlement issues, and seriously cuts current spending, even into the future, is probably the only route, at this point, to avoiding a disastrous collapse. Even if the plan became law, there are still deep concerns. One, a future Congress can repeal it; two, the Fed can so damage the dollar that the numbers may become meaningless in a currency collapse. But without a cut on the scale proposed by Ryan, or even greater, we are only greasing the skid to the edge of the cliff. And gravity will take over.

[1] Erik Wasson, “Carney: Boehner being inflexible on debt,” 05/10/2011, The Hill.

Illustration: Public domain.
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