Free Markets, Free People

Daily Archives: February 14, 2009


Fat-Tax Gets Trimmed Down To Size

I‘m sure this will come as a complete surprise to some on the left but the people didn’t go for Gov. Paterson’s idea at all:

New York Gov. David Paterson admitted Thursday one of his most talked-about tax proposals, an obesity tax on sugary drinks, is fizzling.

But he said it popped the right question.

In meeting with college students over his budget, Paterson told the young New Yorkers not worry about his soda tax because the Legislature won’t go for it. But he said it has served its purpose of raising awareness of childhood obesity.

It served  another more important purpose – it showed the extent to which politicians are willing go to control your life and that they are only limited by their imagination. Without a public outcry, this might have found its way through the legislative process. Eternal vigilance is the price of freedom.

And another point to ponder – if government was the sole purveyor of health care, how outlandish of an idea do you really think this would be? A legislature looking for ways to raise revenue while cutting costs in health care?  A fat-tax would be a no-brainer and its justification would be found in government’s assumed responsibility for your health.

[HT: Matthew H.]


Buyer’s Remorse? Have Obamacons Been Obamaconned?

I‘ve spoken before about the political brilliance that running on nebulous catch phrases can accrue for the politician. Lay them out there, let the voting public decide what they mean to each of them and then ride the wave to elected office.

Obama did precisely that. And many who are marginally on the right, were fooled by that. Those who voted for him projected their “hope” for “change” on the blank screen he provided. But, as you’ll see in this example, the reality of who Barack Obama really is may be clearing up, and it appears it is a huge disappointment to many of his more conservative/libertarian supporters.

Silicon Valley, where I live, is home to both political liberals and conservatives–more liberals of late, but not by a huge margin. The lopsidedness occurs on the freedom-statist divide. An overwhelming majority of Valley residents would place themselves on the freedom side and against the state. This should not surprise anyone. Silicon Valley is a land of immigrants, both foreign and from other American states. What draws people to Silicon Valley is the freedom to go out and commit industrial revolution and make the future.

Thus it was always odd that Silicon Valley voted for the most statist-inclined presidential candidate since FDR. Silicon Valley fell in love with Barack Obama. His youth and multicultural cool, along with the Web superiority of his presidential campaign, had Silicon Valley going googly for Obama.

In the eyes of Silicon Valley, Obama was like the Apple Macintosh. John McCain was like Windows.

Now comes the reckoning. Obama may be the coolest guy ever to hold the office of U.S. president. He may be the personification of an Apple Mac, iPod and iPhone. But this week Obama proved he is a big-state liberal, through and through.

My Silicon Valley friends who supported Obama are weirdly silent about this. I suspect they are in denial, still hoping for the closet libertarian Obama to emerge. Throughout the 2008 campaign, Silicon Valley Obama voters would tell me that Obama was really an economic centrist. Forget his liberal Senate record and Saul Alinsky-conditioned career as a community organizer. Forget the Chicago-style thug politics. That was in the past. Obama did what he had to do to rise. Once in the Oval Office, Obama will really govern more like John F. Kennedy, Bill Clinton or Tony Blair.

Say it enough times, and you can almost believe it. Well, sorry about that, you Obamacons. You just got thrown under the bus.

The $790 billion stimulus headed for Obama’s desk is statist. It is also backward looking. Sure, there are some forward-looking initiatives, such as a few billion for broadband. But the bill is overwhelmed by “shovel-ready” projects aimed at school building improvement, road repair and so forth, and by bailouts to profligate state governments.

Very disturbingly, the bill has the stench of protectionism in it. This is antithetical to the interests of trade-happy Silicon Valley.

What is becoming clear is the Obama we can expect to govern is the big government statist liberal and not a “closet libertarian” as they hoped. Note the word. They fooled themselves into thinking that was actually a possibility. Yet as I pointed out below, this huge and unfocused spending plan being touted as a “stimulus” is nothing more than a massive expansion of government. It is also just the prelude for further intrusion, essentially a down-payment which paves the way for massive intrusion in health care and the energy sector.

For those who cast a jaundiced eye on the candidate and his blank slate campaign, none of this comes as a surprise. A creature of the most liberal political machines in America, a student of Saul Alinski’s method and someone who consistently saw government as the answer and not the problem during his political rise, the Barack Obama the folks are suddenly discovering in Silicon Valley and other parts of America is precisely the guy we expected.

His “youth and multicultural cool” may have been part of sales job, but now it comes down to performance. Thus far his performance has been directed at expanding government. Two of the first three bills passed in his administration have massively increased government. And as I’ve noted, he promises even more.

In less than a month, Obama has signaled that there isn’t a libertarian leaning bone in his body. The question remains as to how people, like those in Silicon Valley, managed to fool themselves enough to vote for a candidate who so obviously didn’t fit their “hope”. And are they, as this particular piece seems to indicate, feeling a little buyer’s remorse?

~McQ


Years, Not Months, To Recovery

Well yeah - now:

President Barack Obama on Friday warned that economic recovery in the United States “will be measured in years, not months” as he scored a major victory in his young presidency with the approval in Congress of a $787 billion (£542) bill to revive the economy.

How unfocused is this mess? Well here’s a nice example:

Sec.1421 of the American Recovery and Reinvestment Act gives employers a tax incentive for hiring people (I hesitate to call them “workers,” given it’s not likely they’ve ever held a job for more than a couple days) who fit the following description. Betcha can’t wait to hire this person!

DISCONNECTED YOUTH . –The term ‘disconnected youth’ means any individual who is certified by the designated local agency as having attained age 16 but not age 25 on the hiring date, as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, as not regularly employed during such 6-month period, and as not readily employable by reason of lacking a sufficient number of basic skills.

I wonder if the Democrats who voted for the stimulus bill realize they just voted to give a tax break to McDonald’s and WalMart.

Of course, they have no idea of who or what they’ve given breaks too (although I doubt McD’s and Wal-Mart are eager to take on workers with no skills).

And the bill is rife with examples like the above. What is doesn’t have at all are the things economists know work and work immediately – like marginal tax cuts.

Fact Check takes a look at the bill and finds problems with many of the basic promises made (and certainly takes issue with the claim there are “no earmarks” in the bill).

A couple of things Fact Check notes include the claim that digitizing health records and modernizing the electrical grid will be quickly done and provide great savings:

The president also says electronic health records will save billions of dollars. But the Congressional Budget Office says that even a decade of expected savings are unlikely to pay back the government what the government will spend on health IT.

The president said the bill will modernize the nation’s electricity grid, reducing consumption by 2 percent to 4 percent. That’s optimistic. Industry reports say that a new grid could reduce energy consumption by up to 4 percent, but not until 2030 and at a cost much greater than the stimulus bill would cover.

But what this does is get the proverbial government nose under the tent and set up more spending with future bills:

Mr Obama will also propose a budget to lay the groundwork for sweeping health care reform and present a major green energy bill. Mr Obama will also propose a budget to lay the groundwork for sweeping health care reform and present a major green energy bill.

The mistake of the paragraph above is the “groundwork” is being laid with this “stimulus” bill.

So, we’ve added 789 billion to the 750 billion TARP and the possible 1.2 trillion Geithner plan and are contemplating spending hundreds of billions more for “sweeping health care refomr and … a major green energy bill”. And we haven’t even mentioned the coming “AGW” spending debacle.

What generation are we up to now? Have we dragged my great, great, great grandchildren’s generation into to this yet?

Shameful.

~McQ


Welcome To The Extended Recession

I was sitting here with my two older grandsons and when word came that the bill had been approved by the Senate I said, “congrats boys, you just went about $30,000 into debt tonight”. Of course that spurred an instant response – “What!?”. And then we had a nice little talk.

Watch for flying pigs

Watch for flying pigs

A bill full of wasteful, unfocused spending with money we don’t have and we’ll be lectured soon about “fiscal responsibility” and “sacrifice” by the profligate yahoos that put this mess together. Can’t wait.

~McQ