Free Markets, Free People
During his presidential campaign, President Barack Obama promised the American people a “net spending cut.” Instead, he signed a “stimulus” bill that spends $800 billion, and he has proposed a budget that would:
- Increase spending by $1 trillion over the next decade
- Include an additional $250 billion placeholder for another financial bailout
- Likely lead to a 12 percent increase in discretionary spending
- Permanently expand the federal government by nearly 3 percent of gross domestic product (GDP) over pre-recession levels
- Raise taxes on all Americans by $1.4 trillion over the next decade
- Raise taxes for 3.2 million taxpayers by an average of $300,000 over the next decade
- Call for a pay-as-you-go (PAYGO) law despite offering a budget that would violate it by $3.4 trillion
- Assume a rosy economic scenario that few economists anticipate
- Leave permanent deficits averaging $600 billion even after the economy recovers; and
- Double the publicly held national debt to over $15 trillion ($12.5 trillion after inflation).
H/T: Club for Growth
No one with any sense is going to argue that AIG should be doing what it is doing or that the insurance giant isn’t absolutely tone-deaf to the dirge playing within the economy. But the effort and the PR agenda to reclaim the bonus money pursued by our new president just underscores the “confusion and contradiction” his actions and words engender.
President Obama vowed to try to stop the faltering insurance giant American International Group from paying out hundreds of millions of dollars in bonuses to executives, as the administration scrambled to avert a populist backlash against banks and Wall Street that could complicate Mr. Obama’s economic recovery agenda.
We’re talking “hundreds of millions” of dollars here. But when confronted by a omnibus spending bill with hundreds of billions of dollars in 9,000 pork projects, meh, no biggie – “last year’s business.”
I mentioned last week that there was a narrative building which could be quite detrimental to the Obama administration. That narrative started with the British press, in a snit about the treatment of British PM Gordon Brown during a visit to the White House, noting that the administration seemed “overwhelmed”. Supporters claimed that was normal for a new administration, and besides, this one had been handed a very difficult crisis as they came into power, one that would test the abilities of even the most seasoned of administrations. But that didn’t stop the narrative from continuing to form. Then we saw others, even among supporters, begin to wonder. Camille Paglia and Howard Fineman were concerned that things seemed “not quite right” even after 50 days. Was this new administration in over its head? Even Paul Krugman carefully mentioned that those things which needed to be addressed immediately weren’t getting the attention they needed or deserved.
A feeling of uneasiness seemed to be settling over even the Obama supporters. Yesterday, Michael Goodwin, hardly someone who would be identified as a rightwinger, wondered out loud if there may indeed be something to the building narrative:
Not long ago, after a string of especially bad days for the Obama administration, a veteran Democratic pol approached me with a pained look on his face and asked, “Do you think they know what they’re doing?”
The question caught me off guard because the man is a well-known Obama supporter. As we talked, I quickly realized his asking suggested his own considerable doubts.
Yes, it’s early, but an eerily familiar feeling is spreading across party lines and seeping into the national conversation. It’s a nagging doubt about the competency of the White House.
As I said then, when I first brought it up, this is a narrative that if it becomes established, then becomes “conventional wisdom”. Speaking of “eerie”, this is very similar to the narrative that developed and established itself about Jimmy Carter. Goodwin goes on:
The tag of incompetence is powerful precisely because it is a nondenominational rebuke, even when it yields a partisan result. It became the strongest argument against the GOP hammerlock on Washington and, over two elections, gave Democrats their turn at total control.
But already feelings of doubt are rising again. House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid were never held in high regard, so doubts about their motives and abilities are not surprising.
What matters more is the growing concern about Obama and his team. The longest campaign in presidential history is being followed by a very short honeymoon.
Polls show that most people like Obama, but they increasingly don’t like his policies. The vast spending hikes and plans for more are provoking the most concern, with 82% telling a Gallup survey they are worried about the deficit and 69% worried about the rapid growth of government under Obama. Most expect their own taxes will go up as a result, despite the President’s promises to the contrary.
Goodwin is right – the GOP sits on the sidelines for exactly the same reason that the Obama administration and Democrats should be concerned about this building narrative. Voters questioned their competence. And, of course, Democrats hammered the issue. Reid, Pelosi and the Democratic presidential candidates all talked about George Bush’s incompetence, and, by extension, the competence of the GOP. The shoe is now on the other foot and the same charges are beginning to be made about Obama and the Democrats. Warren Buffet has chimed in with criticism. The Treasury Secretary is a Saturday Night Live punching bag. The nomination process has been a disaster.
And it isn’t just the circumstances of a difficult situation which is making this seem worse than it is. No, there’s much more to it than that as Goodwin points out in his conclusion:
Which brings us to the heart of the matter: the doubts about Obama himself. His famous eloquence is wearing thin through daily exposure and because his actions are often disconnected from his words. His lack of administrative experience is showing.
His promises and policies contradict each other often enough that evidence of hypocrisy is ceasing to be news. Remember the pledges about bipartisanship and high ethics? They’re so last year.
The beat goes on. Last week, Obama brazenly gave a speech about earmark reform just after he quietly signed a $410 billion spending bill that had about 9,000 earmarks in it. He denounced Bush’s habit of disregarding pieces of laws he didn’t like, so-called signing statements, then issued one himself.
And in an absolute jaw-dropper, he told business leaders, “I don’t like the idea of spending more government money, nor am I interested in expanding government’s role.”
No wonder Americans are confused. Our President is, too.
Confusion and contradiction are not what people expect from strong leadership. It is what they expect from weak leaders. Obama, to this point, has exerted little leadership. He let himself get rolled by Congress on the “stimulus” bill, eventually becoming a front man trying to excuse their excesses and trying to spin the enormous social spending as economic stimulus. He was again pushed forward to pretend that the omnibus spending bill was “last year’s business” and the earmarks were Bush’s fault. Even the most rabid of supporters have had difficulty swallowing that bit of nonsense. Goodwin is right, what the nation and world is presently seeing from this administration is not the stuff of confidence and competence. It is, instead, precisely what those who actually looked at his previous accomplishments or lack thereof said we should expect – an eloquent and likable young man with no executive experience, no leadership experience and precious little legislative experience who appears overwhelmed by the job. The contradictions and confusion are a result of being pulled hither and yon by competing interests among his advisors and Congress as they try to convince him to back their agenda.
There are no timeouts in the job he’s won. Running off to Chicago for a 4 day Valentine weekend doesn’t slow or stop the world or the events always in motion from continuing to unfold. There’s a reason we usually don’t elect legislators to the presidency. And that’s probably even more true about inexperienced ones.
Unless something drastic happens in which the Obama administration is able to blunt and change the building narrative, watch for it to continue to grow.
Talk about the government getting all up in someone’s business:
Things could get hairy in New Jersey this summer for women who sport revealing bikinis or a little bit less.
The painful Brazilian wax and its intimate derivatives are in danger of being stripped from salon and spa menus if a recent proposal to ban genital waxing is passed by the state’s Board of Cosmetology and Hairstyling.
New Jersey statutes allow waxing of the face, neck, arms, legs and abdomen, but officials say that genital waxing has always been illegal, although not spelled out.
Regardless, almost every salon in South Jersey, from Atlantic City casinos to suburban strip malls, has been breaking the law for years by ridding women, and some men, of their pubic hair for $50 to $60 a session.
Jeff Lamm, a spokesman for New Jersey’s Division of Consumer Affairs, said that the proposal would specifically ban genital waxing, and was prompted by complaints to the board from two women who were injured and hospitalized. One of them sued. Lamm said that the state only investigates infractions if consumers complain.
What happened to “keep your hands off my body”? If the government can dictate the size and shape of the drapes, what’s to stop it from taking over the whole
womb room? It’s not as if the rights of the unshorn are at risk here. In addition, there is a legitimate concern for where women will turn if they lose the right to freely control their bare necessities:
Cherry Hill salon owner Linda Orsuto said that women would “go ballistic” if the proposal passed. She said that some women would resort to waxing themselves, visiting unlicensed salons or traveling to other states, including Pennsylvania, in a quest to remain bare down there.
“The clients are going to freak,” said Orsuto, who owns 800 West Salon & Spa, on Route 70. “It’s a hot issue, and we’re going to have to do something.”
Now, I understand that some aficionados of adult entertainment from the 70′s might be excited about the return of a tufted tarts and piliferous punani. But that sort of hirsute protectionism treads dangerously upon our most cherished freedoms, and will potentially lead to messy entanglements from which we will find it hard to extricate ourselves (think “velcro”).
Accordingly, I stand firmly behind the women of New Jersey and fully support their rights to depilate as they see fit, with the advice and counsel of their salon professional. So say it loud, ladies, in all your glabrous glory: “We’re bare! Down there! And we’re proud!”
Glad they finally noticed:
The Obama administration is increasingly concerned about a populist backlash against banks and Wall Street, worried that anger at financial institutions could also end up being directed at Congress and the White House and could complicate President Obama’s agenda.
Of course the greatest stoker of this populist backlash has been the Obama administration. I’ll be the first to agree that some of the financial institutions, such as AIG recently, have played into the populist condemnation by the administration, but instead of being specific about the AIGs of the world, they have instead gone after an entire industry to the point that “banks and Wall Street” are synonymous with crooks, swindlers and liars. Having established that narrative, seemingly purposely, there’s now a huge backlash building which may, in fact, cripple the administration’s efforts pertaining to both.
“We’ve got enormous problems that need to be addressed,” David Axelrod, Mr. Obama’s senior adviser, said in an interview. “And it’s hard to address because there’s a lot of anger about the irresponsibility that led us to this point.”
“This has been welling up for a long time,” he said.
Mr. Obama’s aides said any surge of such a sentiment could complicate efforts to win Congressional approval for the additional bailout packages that Mr. Obama has signaled will be necessary to stabilize the banking system.
As it is, there have already been moves in Congress to limit compensation to executives at banks and Wall Street firms that are receiving government help to survive.
Beyond that, a shifting political mood challenges Mr. Obama’s political skills, as he seeks to acknowledge the anger without becoming a target of it. A central question for Mr. Obama is whether his cool style — “in a time of crisis, we cannot afford to govern out of anger,” he said in his address to Congress last month — will prove effective when the country may be feeling more emotional.
And the country is feeling emotional because the administration has been making emotional arguments targeting the industry it wants to help. Not very smart politics. And they’ve now finally realized that.
“Never underestimate the capacity of angry populism in times of economic stress,” said Robert Reich, a professor of public policy at the University of California, Berkeley, and labor secretary under President Bill Clinton. “A big challenge for President Obama will be to maintain a rational and tactical public discussion in the midst of this severe downturn. The desire for culprits at times like this is strong.”
The “culprit” has been identified. In their desire to escape blame, government officials in Congress and elsewhere have almost unanimously used their access to the media to vilify banks and Wall Street while pretending they had no hand whatsoever in this debacle. Unfortunately they’ve been quite successful in the scapegoating. However, having established the narrative, they now have to attempt to reverse it because the public rage they’ve helped stoke may prevent them from doing what they think they need to do to turn the financial industry around.
The entire problem that the administration is now recognizing is one of their own making and another indication of their inexperience and lack of foresight. It’s one thing to demonize such industries when campaigning, it is, as they’re learning, an entirely different thing when you do it as the President of the United States. The administration now has to figure out how to reverse a narrative they helped build and establish. That should be interesting to watch.