Economics/Fiscal

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As a child, I remember having discussions which sometimes led to arguments over the popular topic of the moment. Without change, both sides of the discussion would be firm in their views until the decisive answer was handed down by a parent or an encyclopedia. That was pre-Google, if any of us can recall those days. It was a time when encyclopedia britannicas, not wikipedia, resolved disputes.

When no adults were available, or a vastly over-priced collection of books wasn’t handy, you had to end the dispute along a defined line of responses. ‘We agree to disagree,’ ‘whatever (thanks to Saved By The Bell),’ ‘think what you want to think but I KNOW I’m right,’ ‘Nuh-uhhhhhh,’ or the ever popular, ‘it’s science,’ would make the short list for common final arguments. All juvenile, and all were based on pride and lacking in facts. The ‘it’s science’ response was my favorite because it was an attempt to establish a certain fact out of the clear, blue sky.

When one side couldn’t successfully argue their way to the finish line, they would attempt to bludgeon the other side into submission by suggesting that the facts were on their side and any resistance was futile.

I was reminded of this argument today when reading through Speaker Nancy Pelosi’s (D-CA) comments at Tsinghua University in Beijing, China. She was speaking on the issue of “climate change,” a subtle, clever phrase shift away from “global warming” which suffers from a dwindling population of legitimate proponents in the scientific community. Speaker Pelosi began her comments to the gathered crowd by saying, “we are all in this together.” She hammered her point home by saying that goverments “should make decisions and choices based on science.”

She went on to deliver a dizzying array of comments, too scatter-shot and thoughtless for me to cover in this post. Some of the gems [read: eggs] she laid included: “The impact of climate change is a tremendous risk to the security and well-being of our countries;” “They also have to do it with openness, transparency and accountability to the people;” “everyone has to have their situation improved by it;” and “I do see this opportunity for climate change to be … a game-changer.”

As for my obviously differing view on the issue of “climate change,” they have zero argument from me that we should take ownership of our actions and be conservatives when it comes to the environment. Where Pelosi and Co. lose me and a large portion of the population is when they politicize and polarize the issue on the basis of incomplete information, all in the name of “science.” It is an intimation that we are to bow at the alter of “science” and adjust EVERY aspect of our lives on the basis thereof.

This begs a painfully obvious question: how do we account for errors, agendas, and a lack of information with regard to this science? Make no mistake, this argument isn’t, ‘we don’t have all the information, so we shouldn’t act,’ rather I am saying that we should preserve our “well-being” by avoiding costly jaunts into a green economy without any significant return on investment, and look upon the Al Gores and Nancy Pelosis of the world with a politically skeptical eye.

Instead of heavy-handed suggestions that we let climatologists determine what is best for our countries, economies, and personal lives, all under the basic argument that ‘it’s science,’ shouldn’t we be having a rational, non-political discussion about the environment? I suppose that is too much to ask for with the stellar leadership of House Speaker Pelosi. What do you think?

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For those in or out of the law, one of the best and most funny courtroom cross-examination scenes is in the movie My Cousin Vinny.  Linked here (the section begins at about 8:00 minutes), Vinny, played by Joe Pesci, is defending two young guys mistaken for suspects in an armed robbery at a convenience store.  He cross-examines a guy who identified the two boys as suspects based on the time it took him to cook grits on his stove.

Cross-examination is great, because it tests out a story and helps to uncover the truth.  When someone speaks, it can sound great; but it may be full of holes when another comes forward to question him. (Prov. 18:17).

In this cross-examination, Vinny suggests that maybe two other boys did the robbery, ones who came in the store afterward.  The witness, Mr. Tipton, says that Vinny’s idea is wrong.  Mr. Tipton says that he saw them enter when he began cooking his grits and heard the shots when he sat down to eat, a time of about 5 minutes.

Vinny then reminds Mr. Tipton that cooking grits from scratch, which follows the laws of physics, takes the rest of the world 20 minutes.  How could it only take 5 minutes for Mr. Tipton?  Vinny then goes into a series of questions.  “Can water can soak into a grit [a piece of ground corn] faster” in his kitchen “than in any other place on the face of the earth?”  Tipton responds very flustered, ‘I don’t know….I’m a fast cook, I guess.”  Vinny continues, asking whether the “laws of physics cease to exist on your stove?”  “Where these magic grits?”  “Did you buy them from the same guy that sold Jack his beanstalk beans?”, a reference to the Jack and the Beanstalk fairy tale.

In thinking of this it reminded me of one of my earlier posts and the need to emphasize the craziness of our President’s economic plans.  Our President really should be cross-examined on how he expects increasing debt to make us economically prosperous.  Here’s my cross-examination script, which because of the lunacy of our economic plan, ends up looking pretty close to the lines from My Cousin Vinny.

William (calmly):  Is it possible that there is another way to get us out of this recession other than by spending money we don’t have and redistributing money from businesses and people who have it to those who don’t?

President Obama (confidently):  No. I believe that buy printing money and giving people money, our economy will improve.

William: (calmly)  So you mean to tell me that not having money to spend affects you differently when the entire money spending world can’t spend what it doesn’t have? How can you make debt go away by spending more money?

President Obama (flustered):  I don’t know; I’m a great leader, I guess.

William (a bit more intense and louder) :  I’m sorry, I was all the way over here and I couldn’t hear you; did you say that you’re a great leader?  That’s it?!

Obama (nods sheepishly): <silent>

William (incredulously): Are we to believe that the money in your national checkbook multiplies to pay debts in a way different from any other place on the face of the earth?!

President Obama (flustered):  I don’t know.

William (incredulously):  Well perhaps the laws of economics cease to exist in your administration?!

President Obama: <silent>

William (incredulously): Are these magic dollars?! Did you get these bailout dollars from the same person who sold Jack his beanstalk beans?!

President Obama: <silent>

And as the judge attempts to protect Mr. Tipton, the media in reality swoop in and protect the President from any further criticism. But the answer he eventually must give is “I’m not sure.”

We can go beyond that, and give a resounding “No.”  The entire depository of world history can testify that money doesn’t spring from debt.  Debt must be paid away; it cannot be spent away.  And that’s the final analysis on the upside-down economic plan that this country has had pressed upon it.  The basics of economics are that you can’t spend yourself out of debt; printing money causes inflation because it devalues the dollar.   Rewarding companies for poor performance by bailing them out does not force them to change their ways.  Debt must be reconciled with the people who made it, not pushed off to another generation.  And when government interferes in the economy rather than being a referee, bad things result.

The laws of physics didn’t fail on Mr. Tipton’s stove; he was simply wrong.  And the laws of economics don’t change because Barack Obama is at the helm of our ship of state; he is simply wrong.  Let’s call it for what it is and begin to operate on truth.

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Remember that cold January day just a few months ago when President Obama promised to take “bold, swift action” regarding the economy? Remember hearing the president-elect was in serious discussion with the big three auto makers before his inauguration to save the auto industry and, gasp, the economy from certain ruin?

Now, just a few months on, it appears that the President and Democrat-controlled Congress who saw fit to take over Chrysler and General Motors by using billions in taxpayer money aren’t as effective as they fancied. In the not-so-distant past, Republicans led by Senators Shelby (R-AL) and Kyl (R-AZ) called the auto makers “dinosaurs,” and stated that federal money “just puts off for six months or so the day of reckoning.” Despite protests of the auto bailout, we were reassured by Obama and the “New Direction Congress,” that they would “hold tight the purse strings of government to protect American taxpayers— and make only sound investments to grow our economy for a lasting and broadly shared prosperity for all our people.” Even Barney Frank boldly asserted “there’s no downside to trying.

As of today, we find the Nation billions deeper in debt, Chrysler and GM are preparing to meet their day of reckoning AKA filing for bankruptcy, and we have a Democrat-controlled government at the wheel (no pun intended) attempting to steer these auto companies back to viability. Wouldn’t this big mess have been averted if we let the markets do our bidding? Despite the massive infusions of government funds and the governmental hulking over these businesses, they and America are no better off. The economy is no safer from the dire consequences warned of if these companies were allowed to enter bankruptcy to begin with, and yet the same Democrat leaders continue to hold the line on a policy of “bold, swift action” which thus far has been a massive hemorrhagic failure.

We continue to hear claims from the administration that they remain “very hopeful” that Chrysler will survive. However, the markets, investors, and car buyers have already made their decision. The only thing that remains to be seen is when the Democrats realize their mistake and cut our loses, allowing this failure of a venture into the open markets to slide into textbooks as an example of the ineffectiveness of government intervention for failed businesses.

In case you missed it, Arthur Brooks, president of the American Enterprise Institute, had an excellent editorial in the Wall Street Journal on Friday entitled “The Real Culture War Is Over Capitalism.”

A teaser:

Free enterprise is culturally mainstream, for the moment. Asked in a Rasmussen poll conducted this month to choose the better system between capitalism and socialism, 13% of respondents over 40 chose socialism. For those under 30, this percentage rose to 33%. (Republicans were 11 times more likely to prefer capitalism than socialism; Democrats were almost evenly split between the two systems.)

I chalk this up to the lack of economic education in our classrooms.  We love to teach arts and sciences (as we should), and then tell the kids they’ll need this stuff in the real world (they will).  Unfortunately, we then fail to teach them the most basic of economics, civics, and personal finance, which they’ll need even more in the real world.  Consequently, our country is turning away from reality and into socialist fantasy.

Also, did you realize that President Obama’s budget report is entitled ”A New Era of Responsibility”?  That gave me a hearty laugh, but I guess the joke’s really on us.

I interrupt my series of articles on why illegal immigration hurts America to discuss a politician who has no principles except that of protecting his own political career—the exact opposite of public service. This article is about the recent change of Arlen Specter from Republican to Democrat Senator.  My other fellow SquarePost-ers have weighed in, and I will also.

As most folks know by now, Benedict Arnold was general to George Washington in the Revolutionary War; he left and betrayed the American principles to support the British. The name has come to stand for a high level of betrayal.

Senator Arlen Specter’s recent party change from Republican to Democrat, while explained in language that seems like it had to be done, is nothing more than a high level of betrayal. And the sickening thing about it is he, by his own words, did it for selfish pride.

Specter’s reasons or defenses for this are: (1) that while he came in the Republican party under the Ronald Reagan “Big Tent,” the Republican Party has drifted to the right, and (2) polls of his state reveal his unpopularity and he is not going to let his 29 year Senate career be based on the voters of the Republican primary. This explanation is, plain and simple, wrong. Here’s why.

Just a brief comparison of the party platforms of 1860 (the first year the Republican Party existed; available here, 1980 (Reagan’s first year; available here), and 2008 (the most recent Republican Party platform; available here) shows that the party has not moved; Specter is dead wrong. While each platform obviously reflects the issues facing the nation at each different time period, the approach to solving these issues and the goals of the platforms all center around (1) inalienable rights given by God, (2) limited government power, (3) low taxes, and (4) personal responsibility. In the 1860’s the issues were trade and slavery; in the 1980’s the issue were the Cold War and abortion; in 2008 it was the war on terror, social program spending, the economy, abortion, and traditional marriage.  And the Democratic opposition was against these core values each time.  In the 1860s the Democratic Party was pro-slavery, it has always been a tax-and-spend party; has no problem with the “government is the solution to our problems” approach, which has the result of giving people “fish,” creating a nation of dependent people, rather than independent responsible people.

For the Republican Party, while the issues change, the approach to the issues remains the same. Republicans believe that the Declaration of Independence and the Constitution provide for inalienable rights, a limited federal government, that government is not the answer to all our problems, and that people are over the government, not the other way around. These ideas also form our solutions: we are for the rights of the unborn; allowing people to keep more tax money so that social programs come from people who care—churches and private civic groups who always [read: forever] are more efficient than government programs; handing people fish [read: constant social welfare dependency] is never as effective as teaching people how to fish [read: training folks to be independent]; and that government spending should be like household spending—that is, you don’t spend what you don’t have, and you don’t hike taxes on folks in Texas to pay for bridges in Pennsylvania.

So Specter has no truth in his claim that the Republican Party has moved to the right; but what about his other reason: his 29-year Senate career? In his press release, he wrote:

In the course of the last several months since the stimulus vote I have traveled the state, surveyed the sentiments of the Republican Party in Pennsylvania, done public opinion polls, observed other public opinion polls and have found that the prospects for winning the Republican primary are bleak. I am not prepared to have my 29-year record in the United States Senate decided by the Pennsylvania Republican primary electorate.

Basically he is writing that because the people of Pennsylvania are voting more Democratic, his principles must change. This, from the standpoint of the Christian public servant, is sickening. Two examples come to mind. First is that of Cincinnatus, who became a public servant in Rome only to lay down the “reins” of leadership when he was no longer needed. When he ruled, it was on his principles and only so long as the people asked him to be there. When his time was done, he went back to farming.

The best example though, by far, comes from Jesus, both in word and deed. In Luke 22, Jesus told his disciples he would be gone. “Within minutes they were bickering over who of them would end up the greatest. But Jesus intervened: ‘Kings like to throw their weight around and people in authority like to give themselves fancy titles. It’s not going to be that way with you. Let the senior among you become like the junior; let the leader act the part of the servant.’” (The Message Version) Specter is acting like the disciples, concerned about his place and position, leaving behind a set of core values which are supposed to animate everything he does for his own self interest and self gain, so he can hold onto the “title” of Senator no matter what.

And Specter admitted this. His only guiding principle is not serving others, but serving himself. He remarked, “No, I’m putting principle at the top of the list. The principles that I subscribe to are my independence, which I will retain regardless of party label.” Who knows how he will vote? Independence is good, because you can stick to your principles. But when your only principle is yourself, you will in the end bow down to and worship yourself through greed, envy, and pride—the desires that corrupt our hearts, instead worshiping God through compassion, service to others, and selflessness—the desires that make the world a better place.

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President Obama’s new-found commitment to fiscal discipline would be comical if it were not so insulting. After waiting three months to hold his first Cabinet meeting, the President presented the Cabinet and the nation with a version of himself that is concerned about runaway deficits and out of control government spending. Before the meeting even began, Team Obama’s press office lauded the solution their boss had come up with to solve this weighty problem—ordering his Cabinet members to find waste in their departments and eliminate it.

After pounding the drums of fiscal conservatism, however, Obama’s delivery looked less like a President responding to the concerns of the American taxpayer and more like Dr. Evil in the first Austin Powers movie. Frozen for 3 decades, Dr. Evil attempted to hold the world ransom for $1 million, not realizing that this was a paltry sum to the governments he was extorting. Obama, seemingly oblivious to the size of the federal budget, demanded that his Cabinet cut (cue the pinkie finger) $100 million dollars. It is a shock that his Cabinet secretaries did not start laughing at (or with?) him as soon as the words came out of his mouth.

Everyone needs to be very clear about how small this amount is in the scheme of our bloated federal government, and how smug the administration is to think that this is going to appease the crowds of people that demonstrated at last week’s Tea Parties.

–This year’s federal deficit is expected to be in the ballpark of $1.3 trillion, thirteen thousand times greater than the proposed agency cuts. It would take a Cabinet meeting every day for the next 36 years to eliminate the deficit $100 million at a time.

–Estimates of the size of the TARP program and its successor “public-private partnerships” top out around $2 trillion—twenty thousand times larger than the cuts. That’s 55 years of daily Cabinet meetings.

–There were $8 billion in earmarks in the latest appropriation bill—eighty times larger than Obama’s cuts.

–The cuts are two hundred and fifty times less than the $25 billion the FDIC got from Sen. Diane Feinstein for awarding a lucrative contract to her husband’s real estate company.

–Finally, on the same day he so lauded his own commitment to fiscal discipline, he proposed to give the IMF $100 billion—one thousand times as much money as he proposed be cut from the agencies. For an excellent analysis of how paltry Obama’s agency cuts are, this AP report is a must-read.

Team Obama’s arrogance throughout this ordeal cannot be understated. Thankfully, however, the press is pushing back on Team Obama’s laughable claims. In an exchange with ABC News’ Jake Tapper, Robert Gibbs tried to justify these cuts by saying that “only in Washington is $100 million is a not lot of money” and that “hundreds of millions” of Americans agreed with him. It seems that Team Obama just wanted to pick a number large enough to resonate with wage-earning, tax-paying Americans, but they completely missed the mark on how outraged people are with the ever-burgeoning size of the federal government. Mr. Gibbs, $100 million is not a lot of money in Washington precisely because your boss consistently doles out amounts hundreds, if not thousands, of times larger. President Obama has presented the taxpayers with a joke of a deficit reduction measure, but he should take note—not many of us are laughing.

In honor of today’s Tea Parties:

“I hold it that a little rebellion now and then is a good thing, and as necessary in the political world as storms in the physical.”

- Thomas Jefferson

When the concept of an online conservative movement was first brought up, we thought it would be important to be specific about our values.  It is daunting to try to reduce the idea of conservative values into one page, but we gave it a valiant effort.  This document took several months to complete, and is the end result of a lot of critical eyes.  Though the document isn’t meant to cover every aspect of conservative thought, it is broad.

This declaration is intended to give our readers a more concrete idea of who we are, and what we stand for.  We wanted to extend beyond the obvious points of “lower taxes, and smaller government” to further define the conservative outlook.  This effort includes detailed positions regarding: limited and civil government, federalism, social values, fiscal and economic values, immigration, national defense, foreign policy, the second amendment, and the environment.  So when someone asks you what conservatives stand for, you can point to our Declaration of American Values.

We believe that reviving the conservative conversation begins and ends with the ideas.  After all, our motto is “It’s about the ideas.”  We aren’t into baseless rhetoric, and we are careful to avoid the tired anti-intellectual attacks while still standing firm in our positions.    One thing that our friends of other viewpoints have come to discover is, we will engage them in debate on any topic, but we will not attack them or attempt to shut their ideas down simply because we do not see eye-to-eye.  This is because vigorous and lively debate is the hallmark of a healthy society.  We believe that our values are made stronger by having to defend and debate them.

Let this declaration be a starting point for your perception of our movement called, SquareWON.  We intend to build upon these values so as to demonstrate the relevance and importance of being a conservative in today’s world.  We hope you will give the declaration a read, and if you think these values are agreeable, please sign them at the bottom.  We won’t be using your information to sell lists or do any of the other reprehensible things people do with others’ information after they sign a petition.  We will however need it to demonstrate the collective strength of the next wave of conservatism in America.  So give it a look, and let us know your thoughts.

Our Declaration of American Values.

One of the things I have always admired about the British and their parliamentary system is their method of direct, face-to-face debate with the Prime Minister and his cabinet.  It often creates excellent debate, and the occasional Jerry Springer-like spectacle.

The European Parliament operates similarly, and Daniel Hannan, a Conservative MEP, got the opportunity to confront UK Prime Minister Gordon Brown on bailouts and budgets:

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I can feel the burn all the way from Brussels.  Now wouldn’t it be nice to have that kind of honesty here?

Stop Sending Our Future, an educational website sponsored by The Heritage Foundation and Americans for Prosperity Foundation, has produced a fascinating and truly scary video on what the politicians in DC have done to our nation’s finances:

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Please watch and then forward to your friends.

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