Free Markets, Free People
Perhaps you’ve heard about Joe Biden’s latest gaffe regarding his task of overseeing the Recovery Act:
How can the public know that the money is allocated correctly? That’s the question CBS’s Maggie Rodriguez asked.
“We’re going to put every bit of this transparently up on a website. You’re gonna know. You’ll be able to go on a website. Every single bit of this will be on a website,” he explained.
“You know, I’m embarrassed. Do you know the website number?” he asked looking offstage. “I should have it in front of me and I don’t. I’m actually embarrassed.”
He was able to get the website “number” from someone off camera.
“Recovery.gov. It’s Recovery.gov. It’s up and running,” he said with newfound confidence.
If that doesn’t inspire confidence, then maybe you should just go visit the “number” VP Joe suggested. Before you do, however, keep in mind that, from far to wide and low to high, the Obama administration has been touting not just the need for transparency,
Orzag said the two goals are to spend stimulus money “quickly” and “wisely,” adding, “We have to go beyond normal procedures to a higher level of transparency.”
But also on the determination and ability of the administration to deliver it:
“I [Pres. Obama] am also proud to announce the appointment of Earl Devaney as Chair of the Recovery Act Transparency and Accountability Board. For nearly a decade as Inspector General at the Interior Department, Earl has doggedly pursued waste, fraud and mismanagement, and Joe and I can’t think of a more tenacious and efficient guardian of the hard-earned tax dollars the American people have entrusted us to wisely invest.”
Apparently, the whole point of Recovery.gov is to show where your tax dollars are going, and what they are being spent on. So let’s have a gander.
On the front page, my eyes were immediately drawn to the large graph dominating the left side of the page:
Wow! According to that chart, the largest expenditure by far ($288 Billion) is going to tax relief. Heck it’s twice as much as the next category of State and Local Fiscal Relief which is only get a paltry $144 Billion. That’s fantastic news. I feel so bad now for thinking that the bill was nothing more than a huge wealth transfer and goodies giveaway. Tax relief is always a good idea when it comes to pulling ourselves out of a recession.
But wait? What’s that asterisk? I click on the chart and am taken to a lovely bubble graph that displays the same information. But with more bubbles, which are always nice. And bubble are transparent too, right?
Yep. There it is again, that $288 Billion in tax relief, dwarfing all the puny spending bubbles. Of course, being an intelligent person, I know that you have to add all of the spending bubbles together to see how they compare to the tax relief, but it’s strangely comforting to see that giant, transparent bubble named Tax Relief making all the other bubbles seem, somehow, insignificant.
Unfortunately, that asterisk is still there as well. I follow it down to the bottom of the page where, in tiny print, I see these words:
* Tax Relief – includes $15 B for Infrastructure and Science, $61 B for Protecting the Vulnerable, $25 B for Education and Training and $22 B for Energy, so total funds are $126 B for Infrastructure and Science, $142 B for Protecting the Vulnerable, $78 B for Education and Training, and $65 B for Energy.
I think my bubble has burst. But that’s how government works now I guess: making bubbles bigger than they ought to be.
First the Obama speech. My overall impression was that of a campaign speech. High flying rhetoric, intentions hidden in comfortable rhetoric that Americans find more acceptable than other and contradictions which were so evident that I’m surprised the media let them pass (ok, not really, but I thought I’d jab them a little). However, in reality, it was much more than that as I’ll cover a little further on. But, as usual, very well delivered.
The Jindal speech, on the other hand, suffered by comparison. And, in fact, it suffered badly. Whoever helped him put that together should have skipped the “folksy” stuff and gotten down to business. By the time he finally got to the point, I was slack jawed with stupification. Having just sat through a 45 minute Obama speech I wanted a quick “give it to me now” response. 5 minutes into the Jindal speech we still didn’t know where he was going with it. My guess is by that time, most people who had thought about watching him had thrown up their hands, hit the can and were raiding the liquor cabinet.
Back to the Obama speech. As I thought about it more I realized he’d very carefully hidden the intention of his administration and the Democrats to convert this country into a cradle to grave European-style socialist country. Seriously. It’s all in there, but you have to carefully pick it out. While he never came right out and said it, he sure hinted around the edges. Probably the closest he came to actually laying it out was this:
That is why it will be the goal of this administration to ensure that every child has access to a complete and competitive education –- from the day they are born to the day they begin a career.
The same basic message was given concerning health care. When speaking about the budget he made this statement:
It includes an historic commitment to comprehensive healthcare reform –- a down payment on the principle that we must have quality, affordable healthcare for every American.
Two things to note – he didn’t say “health insurance” for every American. He said “health care”. And he also seems to have backed off of not making this mandatory.
He hit it again when talking about the two largest entitlement programs we have:
To preserve our long-term fiscal health, we must also address the growing costs in Medicare and Social Security. Comprehensive healthcare reform is the best way to strengthen Medicare for years to come. And we must also begin a conversation on how to do the same for Social Security, while creating tax-free universal savings accounts for all Americans. [So those "savings accounts" of old W's weren't so bad after all, huh? - ed.]
And here is where one of the glaring contradictions comes out. While claiming that the government’s version of health care will be much more efficient and less costly than the private version, he contradicts himself when he says we must get the spiraling Medicare and Medicaid costs under control. I’ll remind you of what we were promised Medicare would cost when it began, and I’ll further remind you that the real cost ended up at least 6 times that amount. I’ll also remind you that each year, that program has about 60 billion in waste, fraud and abuse. One of the efficiencies Obama claims will bring cost down is the elimination of that waste, fraud and abuse. That promise is as old as politics and still unfulfilled.
Last night, during the liveblogging, when Obama got to the auto industry, and started throwing “we” around, I asked “who is the ‘we’ he keeps talking about? Of course when you read the passage, I’m sure you will be able to figure it out:
As for our auto industry, everyone recognizes that years of bad decision-making and a global recession have pushed our automakers to the brink. We should not, and will not, protect them from their own bad practices. But we are committed to the goal of a retooled, reimagined auto industry that can compete and win.
I bet “we” are. The question is, will the “we” who are known as the public be willing to buy these autos designed and “reimagined” by government?
And, of course, the populist Obama was present as well . That’s a very old and tired political trick which still manages to work unfortunately. A method of creating an emotional distraction while you propose things which are much worse:
This time, CEOs won’t be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over.
Just hearing a President of the United States say such a thing should send shivers up your spine. Instead it was one of the major applause lines of the night.
And this too should have caused those who love freedom to pause and understand the underlying promise of the words spoken:
A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future. Regulations were gutted for the sake of a quick profit at the expense of a healthy market.
Transfer wealth to the wealthy? How by letting them keep more of their money? How is that a “transfer”? Well, it becomes a transfer if you believe it really isn’t theirs at all. And the spending spree the Democratic Congress and the Obama administration are embarking upon certainly makes that case. With the lie about “no earmarks” in the “stimulus” bill again given voice, and with a 410 billion omnibus spending bill with 9,000 earmarks and another trillion being thrown into the financial sector, not to mention the cost of health care “reform”, S-CHIP and the coming cap-and-trade system, there’s no question where the “transfer of wealth” will be going during the next 4 years is there?
I‘m a big booster of the military (yeah, yeah, I know, big surprise) but when it or members of the military do dumb, stupid or illegal things, I call them out. This is one of those times:
A U.S. soldier on active duty in Iraq has called President Obama an “impostor” in a statement in which he affirmed plans to join as plaintiff in a challenge to Obama’s eligibility to be commander in chief.
The statement was publicized by California attorney Orly Taitz who, along with her DefendOurFreedom.us Foundation, is working on a series of legal cases seeking to uncover Obama’s birth records and other documents that would reveal whether he meets the requirements of the U.S. Constitution.
“As an active-duty officer in the United States Army, I have grave concerns about the constitutional eligibility of Barack Hussein Obama to hold the office of president of the United States,” wrote Scott Easterling in a “to-whom-it-may-concern” letter.
As Neptunus Lex says, “this is a guy way out of his swim lane”. Lex mirrors my reaction exactly:
I’m no particular fan of the president’s agenda, but this smells too like the actions of those refuseniks who insisted that the 2000 presidential election was invalid because the result failed to conform to their preferences. Only this is worse, because the individual in question is an active duty officer serving in a combat zone. It’s going to create a huge headache for both his soldiers and their chain of command, all of whom have much better things to do with their lives – like preserve them – than to coddle the whimsies of a rogue 2LT.
He swore an oath to support and defend the Constitution of the United States. This is mere vanity.
And it is utter stupidity. I don’t support this LT any more than I supported the LT who refused to deploy because he had decided that the Iraq war was “illegal”. They need to get this guy out of Iraq where his divided attention might end up getting someone killed. Then they should help him quickly learn to reassimilate into civilian life again (where he will surely become the darling of a few far-right fringe groups).
Sen. Chuck Schumer has decided he, not the Constitution, should be final arbiter as to whether states take the stimulus money or not:
“No one would dispute that these governors should be given the choice as to whether to accept the funds or not. But it should not be multiple choice.”
So he sent a letter to the OMB Director, Peter Orszag in which he said:
As you know, Section 1607(a) of the economic recovery legislation provides that the Governor of each state must certify a request for stimulus funds before any money can flow. No language in this provision, however, permits the governor to selectively adopt some components of the bill while rejecting others. To allow such picking and choosing would, in effect, empower the governors with a line-item veto authority that President Obama himself did not possess at the time he signed the legislation.
Well, Chuckie, no language in there says they must accept it all either. And, btw, many governors do enjoy line item vetoes.
And then there’s that pesky 10th amendment.
Fed Chairman Ben Bernanke says bank nationalization is unlikely:
Stress tests of big US banks that start this week are unlikely to lead to any of them being seized by regulators and nationalised outright, Federal Reserve chairman Ben Bernanke told Congress on Tuesday.
His comments provided the clearest signal yet that US authorities hope to support major banks as going concerns in the private markets, taking equity stakes as necessary to shore up their capital in what would amount to partial nationalisations.
Stocks rose in response, with the S&P 500 index rising 4 per cent from the previous session’s 12-year lows. Both Citigroup and Bank of America rose about 21 per cent to lead the market higher.
Asked whether the stress tests will lead regulators to move in to take outright control of some banks under powers used to deal with failing institutions, the Federal Reserve chairman said: “No, I don’t think so.”
He made it clear that he does not believe that outright nationalisation makes sense today.
“I do not see any reason to destroy the franchise value or to create the huge legal uncertainties of trying to formally nationalise a bank when it just is not necessary.”
He said the authorities had other ways to “exert adequate control to make sure they are doing what is necessary to become healthy and viable”.
Obama has been trying to play down nationalization for the last week as well, though some would argue that a partial nationalization has already taken place.
You have to wonder if nationalization would cause a run on banks. Wall Street was clearly worried about the prospect. Stocks tanked last week even as Obama was denying plans to nationalize, but they jumped when Bernanke said nationalization was unlikely.
Despite Obama basically telling us last night that the Era of Big Government is back and on steroids, Wall Street was has been skeptical of his plans. For the first time in months, I’m proud of Wall Street.