Free Markets, Free People

Michael Wade

Prepare To Be Smeared

Stephen Tyrone Johns lost his life today at the hands of a deranged man who terrorized the Holocaust Museum in Washington, DC:

A Holocaust Museum guard died after being shot Wednesday in the crowded attraction and a gunman was seriously wounded in return fire, authorities said. The incident left panic-stricken visitors dashing for exits, witnesses said.

“Officer Stephen Tyrone Johns died heroically in the line of duty today,” a late-afternoon museum statement said. “There are no words to express our grief and shock over these events.

“He served on the museum’s security staff for six years. Our thoughts and prayers go out to Officer Johns’ family.”

If you are of the type to be deemed “right wing” by anyone who considers themselves not to be right-wing, then after saying a prayer for Mr. Johns and his family prepare yourself for the onslaught of comparisons that will be made between you and Mr. James Wenneker von Brunn:

D.C. Police Chief Cathy Lanier believes the suspect was acting alone when he entered the museum just before 1 p.m., raised his rifle and began shooting. The suspect started shooting before going through metal detectors, Lanier says.

Von Brunn is said to be affiliated with white supremacist web sites.

Federal law enforcement sources tell WTOP Von Brunn is a convicted felon. He had been convicted of bringing weapons into the Federal Reserve and served time in a federal penitentiary.

A Web site apparently linked to Von Brunn contains Anti-Semitic and racist writings and promotes a book written by Von Brunn. The biography section of the Web site says Von Brunn was born in 1920, was a lieutenant in the U.S. Navy Reserves and a captain of a patrol torpedo boat during World War II and received four battle stars.

After a career in New York City as a copywriter and art director, Von Brunn now lives on Maryland’s Eastern Shore, where he is an artist, according to the Web site.

Because Mr. von Brunn was associated with anti-semitic and neo-nazi hate groups he will automatically be deemed “right wing” just like you. Nevermind that he also seems to have supported other, not-so-right-wing causes as well, or that just today a famous anti-semitic buddy of the President’s resurfaced with a timely quote. As someone labeled “right wing” you will now be forced to carry the von Brunn albatross around your neck.

Moreover, Gaia help you if you squawked about being lumped in with such extremist nutjobs when that DHS report came out, because that only proves their point that you, too, are a right-wing hater who approves of all such vicious murders. And no, there is nothing ironic about the fact that the non-right-wingers are now doing the same thing to you that the DHS report did because you complained about the DHS report doing it. Nothing wrong with that at all, nosiree.

So be prepared, because the caterwauling is coming. Indeed, as Legal Insurrection notes, it didn’t take very long at all for this meme to start up:

Although the shooting is only hours old, numerous blogs already are attempting to tie the act of violence to conservatives and criticism of the Obama administration’s overly broad definition of those who are “extremists.” Posts such as “this looks like the latest episode in what is looking like the spate of right-wing violence we’ve been predicting” or “the right wing has lost whatever restraint it had” or “perhaps it’ll be time to revisit all that criticism of the DHS report” are highly irresponsible attempts to take political advantage of this apparently lone-wolf tragedy.

Ed Morrissey takes on the DHS angle:

Yet again, we have a despicable attack based on hatred and political extremism, the third such attack in two weeks to result in fatalities. Doubtless many people will try to find ways to score political points, like the e-mailer who waited a whole 20 minutes to blame conservatives for dismissing the DHS report on right-wing extremism for this tragedy. To that, I’d respond that our criticism was that the DHS report didn’t focus on known, specific threats, instead making generalized threats about abortion opponents and other vague and broad generalizations about conservative issues. In fact, it never mentioned Holocaust denial at all, nor did it mention anti-semitism at all, either; those terms don’t appear at all in the report. [ed. – my emphasis] And despite being well-known as a threat since the 1980s, the DHS never bothered to identify von Brunn or his organization as a specific threat in the report — which, again, was the heart of our criticism.

To be fair, I have come across one sane “non-right-winger” who seems to understand that a nut is a nut (internal links omitted):

The suspect, James Von Brunn, appears to be a neo-Nazi/white supremacist. This is not an extension of the Republican Party’s, or religious rights’, ideology. There is no question that Tiller’s suspected murderer, Roeder, had direct connections to rightwing propaganda — I drew those connections in this post.

Von Brunn is different. This kook is a neo-Nazi conspiracy theoriest with no connection to the mainstream right. As evidence, here’s his Internet paper trail: an archive of his website “holywesternempire.org”. (The reference to the Germanic Holy Roman Empire during the Middle Ages should be obvious.) Explore his website if you want (I’m not wasting my time), but keep two questions in mind: Do you see links to mainstream rightwing sites? And did any mainstream rightwing websites pay attention to him. Perhaps I need to do more research before answering these questions, but after a cursory look at Von Brunn’s website — as well as trolling rightwing blogs for ages — I think the answers to these questions are no and no.

Tensions are running high and it’s easy to try making a connection between the GOP and people like Von Brunn, but that connection just isn’t logical. Neo-Nazis stand apart from the rest. Let’s not confuse the two.

Despite the reasonableness above, the insanity is already gathering a good deal of speed. By tomorrow night I expect there to be major news reports about the life of von Brunn, how he was connected to neo-nazi groups, how he hated Obama, as well as deep probing questions about how we stop the rising tide of right-wing hate. I would also venture to guess that there will be speculation about whether Dr. Tiller’s murder, von Brunn and that guy from Pittsburgh knew each other, or whether they were in any way affiliated. Their guilt would be further extended to anyone who possibly uttered a conservative idea that sounds vaguely like one expressed by one of the nutjobs, especially if it has a general anti-government flair. In fact, don’t be surprised if Tea Parties are somehow made to blame for all of it.

All because two mentally challenged individuals killed two people. I guess the old Michael Moore-ish pooh-poohing of the fight against terrorism because there is so little chance of your actually dying from it has gone out the window. Of course, if the “non-right-wingers” getting on their collective high horse now had shown even an inkling of the same interest in fighting terrorism as they are exhibiting in their zeal to combat right-wing extremism, then the chances of being killed by a terrorist might be too small to measure.

Nevertheless, extremists have killed and you will be blamed. Consider yourself warned.

UPDATE: As of June 11, 2009 at 12:30 AM ET, Memeorandum has the Rev. Wright story as the lead post to the entire discussion of the Holocaust Museum murder. Hmmmmmm …

* Correction: Originally, the post identified the victim by the last name of Jones. It has been corrected to show the victim’s last name as Johns.

Podcast for 07 Jun 09

In this podcast, Bruce, Michael, and Dale discuss the Obama “Muslim” speech, and the socialization of the economy.

The direct link to the podcast can be found here.

Observations

The intro and outro music is Vena Cava by 50 Foot Wave, and is available for free download here.

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2007, they can be accessed through the RSS Archive Feed.

Socialism In America

Perhaps the time has come to be perfectly frank. We Americans live in a socialist country. In point of fact, we have for quite some time, even though private property has a long, continuing and still revered position in our society. To be sure, we aren’t an entirely socialist country, but instead a mixed one that teeters between the two extremes of collectivism and freedom (i.e. socialism and capitalism). In the past century or so, however, the scale tipped noticeably toward the socialism side, and we are now at the point where capitalism is not the dominant force. Of course, there are many who will disagree with my assessment.

Conor Clarke, for example, offers the following to dispel notions that we have become a socialist country:

Government vs. Private Ownership

Government vs. Private Ownership

Conor explains:

Have you heard that the United States is headed toward socialism? Jonah Goldberg says it is. Alabama Senator Richard Shelby says it is. Phyllis Schlafly says it is. Richard Viguerie says it is. The Republican National Committee says it is. We must be getting pretty close.

[…]

The hot-pink portion of this pie chart is the percentage of listed American business assets that have recently been nationalized by the American government (ie, General Motors). Obama’s version of socialism is so sneaky you can hardly see it!

(And there is some reason to think this actually overstates the portion of the corporate landscape that’s been nationalized, but more on that at the end of the post.*)

While the chart above would appear at first glance to be pretty dispositive of the issue (if the federal government owns so little, can we really be socialist?), it actually begs a huge question. If the segment of the economy effectively nationalized in the past several months is so vanishingly small, why is it necessary for taxpayers to fund trillions of dollars to save it? We’ll come back to that.

Next, Jon Henke observes:

NOTE: The fact is, American has always had a mixed economy, as do all modern, developed economies. The question is not one of category – capitalism or socialism? – but of degree.

[…]

Obama is not socialist. But he is more comfortable with centralizing economic power. As that centralization proceeds, the focus of public interest will shift from “how do we fix the immediate economic problems?” to “how do we fix the problems we created when we tried to fix that temporary problem?” That is when the pendulum can swing back towards decentralization and individual empowerment.

Jon takes a more organic view of the subject. That is, he posits the governing structure of the US as subject to the tolerance of the polity for centralized control of the economy. In his view, just because Obama “is more comfortable with centralizing economic power” that does not mean that we have become a socialist nation. Instead, we are merely experiencing a swing of the political pendulum towards socialism that will inevitably swing back towards the capitalism node. Left unsaid is how often that pendulum has swung away from socialism in the past 100+ years. More importantly, Jon’s assertions beg their own question — i.e. how “comfortable” must a politician and/or the populace be with centralized power before we can safely label it socialism?

In addition to the above, another line of argument is sure to be made (if it hasn’t been already) that we cannot possibly be a socialist country because private property has not been outlawed and the people as a whole do not own and control the means of production. Truly, this is the argument that Conor attempts to support with his graph (not that Conor necessarily agrees with that argument, just that he is holding up evidence that would tend to suggest socialism is not at hand). Essentially, although socialism comes in many forms, a primary ingredient is that the state (on behalf of the people) have dominance over the means of production instead of private concerns. The most extreme form, of course, is where all private property is abolished and the state decides what will be produced, by who, when and how much. Much milder versions such as social democracy exist today that, while they allow private property and much more freedom than, say, Stalinist North Korea, maintain a firm grip over the economy as a whole. Is there any doubt that Germany is a socialist country for example? The question then is, where does America fit when it this spectrum of socialist possibilities, if it fits at all?

At bottom, the problem with these sorts of arguments is almost always definitional. If I start arguing that communism never works and use the Soviet Union as an example, someone is sure to pipe up “that wasn’t real communism” followed by a neat explanation how Lenin and Stalin perverted what the true communists wanted in order to seize power for their own means. In order to avoid that annoyance, let’s at least agree on the dictionary definition of socialism:

An economic system in which the production and distribution of goods are [owned and] controlled substantially by the government rather than by private enterprise, and in which cooperation rather than competition guides economic activity. There are many varieties of socialism. Some socialists tolerate capitalism, as long as the government maintains the dominant influence over the economy; others insist on an abolition of private enterprise. All communists are socialists, but not all socialists are communists.

The definition above comes from the The American Heritage® New Dictionary of Cultural Literacy, Third Edition, and I think sums up the idea nicely. The one thing missing is the word “ownership” which, I expect, someone will insist upon, so I’ve inserted the words “owned and” into the definition. As luck would have it, this is the very concept that I think is missed by almost everyone who discusses whether or not we are a socialist country.

Specifically, what is the difference between ownership and control? Looking again to the dictionary, here is a good legal definition of “ownership”:

“one’s exclusive right of possessing, enjoying, and disposing of a thing.” 72 So. 891. The term has been given a wide range of meanings, but is often said to comprehend both the concept of possession and, further, that of title and thus to be broader than either. See 139 N.W. 101. See fee simple.

The primary concept behind ownership is that of exclusivity, such that if I own real property, for example, I can by right exclude all others. Without the ability to exclude, my “ownership” is something less than complete and the use, enjoyment and alienation (a fancy word for selling, trading or giving away) of property is limited.

To illustrate the idea, consider that you own a piece of real property (Blackacre) which is rich with gold and silver mines, oil, and an abundance of flora and fauna. In short, it is a little slice of heaven and it is all yours. Or at least it would be if were not for the fact that the flora are mostly designated as protected, the fauna are all listed as endangered, and the mineral deposits are tightly regulated, all to the extent that you cannot make any real use of your land except to look at it from a neighbor’s yard in humble admiration for its splendor. Not only are you prevented from drilling or mining on your property, you cannot even build a house or structure of any kind because that might disturb the protected species. The rules and regulations governing Blackacre are so ominous, that you can’t even sell it without first offering it to the government for a price it will set in its own arbitrary discretion. Furthermore, just on the other side of Blackacre is the Pacific Ocean fronted by a lovely beach, to which the law declares access must be allowed for the public, and there is nothing you can do to prevent them from traipsing across your wonderland. In short, you may own Blackacre in title, but you have very little, if any, control.

Of course, at least here in America, the laws and regulations aren’t quite that strict. And the vast majority of people would agree to at least some controls over private property to prevent the owners from harming other property or people (e.g. pollution, building setbacks to prevent fire, etc.)[ed. – let’s ignore Coasean bargaining for now, shall we?]. At some point, however, those restrictions on the owner’s use become so burdensome as to effectively deprive the owner of any real control. The same can be said for the ownership of capital, which can be anything from money to a large factory for building tractors. When the government sets up enough rules and regulations affecting the use and enjoyment of that capital, the fact that ownership is nominally in private hands does not somehow render that government as something other than socialist.

Now, getting back to our definition of socialism, which is more important, “ownership” or “control”? To my mind, this isn’t even a close call. Without control, ownership is next to meaningless. Therefore, if the state has the ability to control the means of production (a.k.a. capital), whether directly through ownership, or indirectly through law and regulation, I contend that such state should be deemed socialist.

Think of a scale that measures the owner’s rights in her own property and how, with each new government missive, that ownership indication drops a little more. Where the state’s intervention becomes intolerable will be different for each person, but from a definitional standpoint, that intervention represents socialism. When the scale registers a significant enough intervention into the owner’s rights, socialism becomes the prevalent factor in the control of property, and private, capitalist “ownership” is either dulled or altogether neutered. Again, without the ability to control that capital, ownership is a meaningless concept that should be left out of the conversation.

Accordingly, when Conor suggests that we are not a socialist nation because the government only owns an almost immeasurable portion of the corporate assets of this country, I suggest that he use a new measurement. Specifically, one that measures the amount of control that “owners” have over their property/capital/etc. That graph would look significantly different in my estimation.

Furthermore, when Jon states that Obama is not a socialist, he’s just comfortable with centralizing economic power, I ask that he consider what ways centralizing power (i.e. control over the means of production) is not socialist, and that he provide a few examples for clarification. Also, if the pendulum is going to swing back towards more decentralization (i.e. less control over capital), how far back would it have to go before most people could be reasonably certain that we are not, in fact, a socialist nation? How far back does he think it would have to go, or is his contention that the pendulum simply hasn’t swung into socialist territory? In considering those questions, I’d ask that the concept of control, rather than titular ownership, be the dominant factor in deciding where the state stands vis-à-vis socialism.

As I see it, we’ve been living with socialism in this country for a very long time. The only difference has been one of degree and magnitude. Its pervasiveness has ebbed and flowed over the decades, but American’s tolerance for it has grown substantially, even if many of us don’t like to call the governance we desire “socialism.” Unfortunately, that’s exactly what it is, and it’s only going to become more prevalent and intrusive. After all, why would anyone who is comfortable with centralizing economic power stop it? They’ll just call it something else and move on with asserting they’re control until one day you’ll be gazing longingly at Blackacre from the public beach, because that’s the only place where you can legally see it.

Dealergate and Statistics

Yet another statistical analysis of the Chrysler dealership closings has been conducted, although this one appears to be both much more thorough (albeit preliminary) and concentrated on the correct data (my emphasis):

To start with, we pulled raw donor data from The Center for Responsive Politics / OpenSecrets.org for the 2008 election cycle and extracted ~865 megabytes of 2008 individual contribution (“IC”) cycle table entries.

[…]

… this particular output is the widest available dataset on contributions. We matched this data against two Chrysler dealer lists:

First, Docket #797 “Document #3″ “Schedule of Designated Domestic Dealer Agreements and Cure Costs Related Thereto” (a list of dealers expected to survive).

Second, the famous “Exhibit A” document of dealers to be closed.

[…]

We ran binary logistic regressions across the variables. The results are interesting but the most dramatic was saved dealers v. donations by candidate and/or party.

The results of the analysis suggest that donors to Hillary Clinton in the recent presidential race received some preferential treatment. That does not mean that anyone has proven anything, nor that the statistical analysis makes any sort of unassailable case. It merely raises a concern that, given the probabilities, Clinton donors appear to have survived the dealership closings surprisingly well.

This puzzled us. Why would there be an significant noticeable (we have rightly been called out for using significant here) and highly positive correlation between dealer survival and Clinton donors? Granted, that P-Value (0.125) isn’t enough to reject the null hypothesis at 95% confidence intervals (our null hypothesis being that the effect is due to random chance), but a 12.5% chance of a Type I error in rejecting a null hypothesis (false rejection of a true hypothesis) is at least eyebrow raising. Most statistians would not call this a “find” as 95% confidence intervals are the gold standard for this sort of work. Nevertheless, it seems clear that something is going on here. Specifically, the somewhat low probability that the Clinton data showing higher survivability of Clinton donors could result just from pure chance. But why not better significance with any of the other variables? Why this stand out?

Then we got to thinking. Steven Rattner, the Car Czar, is married to Maureen White, one-time national finance chairman of the Democratic National Committee. What does Maureen do now? From her website:

Maureen White is currently Chairman of the Board of Overseers of The International Rescue Committee (IRC), a member of the North American Advisory Board for the London School of Economics, and a National Finance Chair of the Hillary Clinton for President Campaign. (emphasis ours)

That website looks dated, but you get the idea.

Again, we want to point out that our findings are preliminary and subject to change. But whatever the result, the Administration has made themselves very vulnerable by taking charge of the dealership closing decisions.

I’m still not sure if there’s anything to the allegations, but there seems to be more than enough anomalies to warrant some questions being asked of the Obama administration. It should be noted that the theory regarding potential shenanigans has morphed from Obama creating a Republican hit list with the closings, to Obama benefiting Democrat donors by allowing their dealerships to survive (and thrive), to Obama’s “Car Czar” rewarding donors to his wife’s favorite political candidate (Hillary Clinton). When the theory moves that much, often it’s a sign that one is fishing for a villain. And despite the evidence amassed in this case showing that an unusual number of Democrat donors are set to prosper from the closing decisions, that may be the case here.

However this all turns out, one thing is certain: by involving itself so deeply in the fate of Chrysler (and GM), the Obama administration invited scrutiny concerning its decision-making processes. Furthermore, in being so opaque about how the government is picking winners and losers (not to mention that it is making these decisions at all), the Obama administration has left itself open to attacks of favoritism. That has nothing to do with Obama or partisanship in particular, but with the fact that unaccountable power rightfully raises fears and suspicions of favoritism. If Chrysler had been left to fend for itself in bankruptcy, none of these questions would have been raised.

The government arrogated to itself tremendous amounts of power over what would normally be private business decisions. In the process, the Obama administration blatantly used its power and influence to reward a favored constituent group (the UAW). Now that statistical evidence suggests more favoritism may have been in play, it’s a little late to cry “conspiracy theory.” Instead, the Obama administration should start opening the books and answering questions.

“Dealergate”: Things To Keep In Mind

Whether or not the decisions to close certain Chrysler dealerships was political motivated is still an open question, and based mostly on anecdotal evidence as well as an incomplete analysis data. Regardless, the evidence available thusfar, when viewed in light of the Obama administration’s previously demonstrated willingness to meddle for partisan gain (UAW anyone?), suggests that in the very least more investigation is warranted.

As the investigation unfolds (the yeoman’s work of which is being done by Doug Ross and Joey Smith), there are couple of things to keep in mind. Although many people have referred to the closing list of dealerships as a “hit list” it makes much more sense to concentrate on the dealerships remaining open and regarding it as a potential “friends Obama supports” list. By way of example, the evidence unearthed by Joey Smith regarding the RLJ-McLarty-Landers enterprise reveals that big time Democrat donors and partisans are reaping enormous benefits from the Chrysler plan in the form of all its competition being wiped out. So who owns this luckiest of dealerships?:

In my analysis of the Chrysler dealers that will remain open, I came across one dealer group that stood out to me.
The company is called RLJ-McLarty-Landers, and it operates six Chrysler dealerships throughout the South. All six dealerships are safe from closing.

[…]

The interesting part is who the three main owners of the company are. The owners are Steve Landers (long-time car dealer, 4th-generation dealer), Thomas “Mack” McLarty (former Chief of Staff for President Clinton), and Robert Johnson (founder of Black Entertainment Television and co-owner of the NBA’s Charlotte Bobcats). Landers has given money to Republicans in the past, but McLarty campaigned for Obama in 2008, and Johnson has given countless amounts of money to Democrats over the years.

Smith has found a similar fortune for Lithia Motors, whose CEO Sidney Deboer is a Democratic donor (although he’s also given to Republicans) and has come out publicly in favor of the Obama administration.

Of course, all of this is still anecdotal, but the planned closings look awfully fishy when the list of canceled dealerships is so totally dominated by Republican donors, and the list of survivors features prominent Democrat supporters.

Regardless of the above, Nate Silver has provided the excuse for Obama supporters to safely ignore this story by declaring the percentage of Republican car dealers to be so high in comparison to Democrats, that there should be little to no surprise when the closing list is so chock full of GOP partisans:

There is just one problem with this theory. Nobody has bothered to look up data for the control group: the list of dealerships which aren’t being closed. It turns out that all car dealers are, in fact, overwhelmingly more likely to donate to Republicans than to Democrats — not just those who are having their doors closed.

[…]

Overall, 88 percent of the contributions from car dealers went to Republican candidates and just 12 percent to Democratic candidates. By comparison, the list of dealers on Doug Ross’s list (which I haven’t vetted, but I assume is fine) gave 92 percent of their money to Republicans — not really a significant difference.

There’s no conspiracy here, folks — just some bad math.

Despite what Silver asserts (i.e. that the control group of non-closing dealerships should be examined), he does no such thing. Instead, he researches the Huffington Post’s Fundrace database for donations from car dealers to arrive at his decision that such occupation gives to the GOP at the tune of 8-1. However, Open Secrets arrives at a much different conclusion, especially over the long term, in which dealers only gave to the GOP at approximately a 3.5-1 clip. At those numbers, one would expect to find somewhere around a quarter of the closings to affect Democrat donors, instead of the 2.36% found thus far:

In fact, I have thus far found only a single Obama donor ($200 from Jeffrey Hunter of Waco, Texas) on the closing list.

Another review of all 789 closing dealerships, by WND, found $450,000 donated to GOP presidential candidates; $7,970 to Sen. Hillary Clinton; $2,200 to John Edwards and $450 to Barack Obama.

Of course, it’s important to remember that statistics do not prove the existence of anything, just its likelihood of existing. Nevertheless, the details uncovered so far suggest that partisanship may have indeed played a role in deciding which franchises remained open.

Juxtaposition

Compare and contrast this rehabilitation effort of Timothy Geitner:

After his hellish opening weeks, Treasury Secretary Timothy Geithner started inviting White House economic officials across the street to his conference room for hours-long working dinners that have helped get — and keep — the whole team on the same page.

[…]

Geithner, a former president of the New York Federal Reserve who once looked like he was floundering in one of the administration’s most scrutinized jobs, is emerging in a new position of strength with the media and the markets, just as he launches President Barack Obama’s high-stakes effort to re-regulate the nation’s financial markets.

[…]

The secretary’s advisers acknowledge that his newfound political standing is tied, in part, to the state of the economy, which is now showing early signs of improvement. But Treasury officials also have updated their playbook after his Feb. 10 speech on financial recovery, which was panned by the press and blamed for a 381-point slide in the stock market.

They decided to “let Tim be Tim” and accepted the fact that his strength wasn’t giving a speech in front of a bunch of flags. Rather, they let reporters see him in off-camera, pen-and-pad settings, where he fielded questions with the confidence that his staff saw behind the scenes. He aced an interview with PBS’s Charlie Rose, thriving in a relaxed setting where he could explain issues at length.

… with this bit of economic reality:

China has warned a top member of the US Federal Reserve that it is increasingly disturbed by the Fed’s direct purchase of US Treasury bonds.

Richard Fisher, president of the Dallas Federal Reserve Bank, said: “Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature.”

“I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States,” he told the Wall Street Journal.

[…]

The Oxford-educated Mr Fisher, an outspoken free-marketer and believer in the Schumpeterian process of “creative destruction”, has been running a fervent campaign to alert Americans to the “very big hole” in unfunded pension and health-care liabilities built up by a careless political class over the years.

“We at the Dallas Fed believe the total is over $99 trillion,” he said in February.

“This situation is of your own creation. When you berate your representatives or senators or presidents for the mess we are in, you are really berating yourself. You elect them,” he said.

His warning comes amid growing fears that America could lose its AAA sovereign rating.

I guess since the media tried to talk down the economy for the previous eight years, they may as well try and talk it up now that their boy is in the White House. The shame of it is that as the economy worsens, a lot of people are going to be shocked.

Media Matters Takes On Sotomayor Quote

Water is wet, the sky is blue, and Media Matters tortures facts and logic to arrive at the conclusion that Sotomayor is being unfairly treated with respect to a prior statement:

Better than a white man?

Better than a white man?

“… I would hope that a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn’t lived that life.”

According to Media Matters, FoxNews babe Megyn Kelly and renowned ABC correspondent Jan Crawford Greenberg misrepresented the above remark and skewed Sotomayor’s true meaning:

Fox News host Megyn Kelly and ABC correspondent Jan Crawford Greenburg misrepresented a remark that Judge Sonia Sotomayor, President Obama’s nominee to the Supreme Court, made in a speech delivered at the University of California, Berkeley, School of Law, claiming that she suggested, in Kelly’s words, “that Latina judges are obviously better than white male judges.” In fact, when Sotomayor asserted, “I would hope that a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn’t lived that life,” she was specifically discussing the importance of judicial diversity in determining race and sex discrimination cases.

Oh, so it’s okay if Sotomayor thinks that her race and gender make her a superior judge in certain cases. Obviously Kelly and Greenberg were horribly unfair then in accusing the SCOTUS nominee of thinking that in every case, since it’s perfectly justified to be a little bit racist and/or sexist … in some cases … sometimes.

As Media Matters for America has noted, former Bush Justice Department lawyer John Yoo has similarly stressed that Supreme Court Justice Clarence Thomas “is a black man with a much greater range of personal experience than most of the upper-class liberals who take potshots at him” and argued that Thomas’ work on the court has been influenced by his understanding of the less fortunate acquired through personal experience.

Well that really nails the coffin shut, doesn’t it? Media Matters goes to the man whom they were vilifying just two weeks ago as the arbiter of what sorts of statements concerning a judge’s race and gender are acceptable. Of course, in making the comparison between Yoo’s statement and Sotomayor’s, they miss a couple of critical points:

(1) In direct contrast to Sotomator’s statement, Yoo never claimed that Clarence Thomas’ experience made him a better judge than anyone else. Instead he merely pointed out that Thomas’ experience aids in his judicial decision-making, just as those who often attack him claim they want from diversity on the bench, and that comparatively, Thomas is in a much better position to understand the plight of the less fortunate than a bunch of upper-class liberals.

(2) Sotomayor was speaking for herself, while Yoo was speaking abouts someone else.

Furthermore, going back to first, misguided point, the claim that Sotomayor was speaking only about sex and discrimination cases is more than a stretch. In fact, she was directly countering a statement attributed to Sandra Day O’Connor, and not at all limiting her refutation of that sentiment to particular cases (my emphasis):

Whether born from experience or inherent physiological or cultural differences, a possibility I abhor less or discount less than my colleague Judge Cedarbaum, our gender and national origins may and will make a difference in our judging. Justice O’Connor has often been cited as saying that a wise old man and wise old woman will reach the same conclusion in deciding cases. I am not so sure Justice O’Connor is the author of that line since Professor Resnik attributes that line to Supreme Court Justice Coyle. I am also not so sure that I agree with the statement. First, as Professor Martha Minnow has noted, there can never be a universal definition of wise. Second, I would hope that a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn’t lived that life.

While it’s true that Sotomayor is addressing sex and discrimnation cases overall, it’s clear that, in this passage, she is listing the reasons that she thinks the O’Connor (Coyle?) platitude is mistaken in general, not just in specific circumstances. Accordingly, Kelly and Greenberg get it exactly right, and Media Matters proves, yet again, that they no more than a propaganda outfit.

RNC “Fumbles” Sotomayor Talking Points?

According to The Hill’s Blog, the Republican National Committee has already screwed up their opposition to Sonia Sotomayor’s nomination:

Whoops. The Republican National Committee (RNC) has apparently inadvertently released its list of talking points on the nomination of Judge Sonia Sotomayor to the Supreme Court.

Included on the released list were a few hundred influential Republicans who were the intended recipients of the talking points. Unfortunately for the RNC, so were members of the media.

Yikes! Sounds bad doesn’t it? There must be some mention of Sotomayor being an “especially dangerous” candidate because of her Hispanic ethnicity or something. Well, let’s have a look-see:

o President Obama’s nomination of Judge Sonia Sotomayor to the Supreme Court is an important decision that will have an impact on the United States long after his administration.

o Republicans are committed to a fair confirmation process and will reserve judgment until more is known about Judge Sotomayor’s legal views, judicial record and qualifications.

o Until we have a full view of the facts and comprehensive understanding of Judge Sotomayor’s record, Republicans will avoid partisanship and knee-jerk judgments – which is in stark contrast to how the Democrats responded to the Judge Roberts and Alito nominations.

o To be clear, Republicans do not view this nomination without concern. Judge Sotomayor has received praise and high ratings from liberal special interest groups. Judge Sotomayor has also said that policy is made on the U.S. Court of Appeals.

o Republicans believe that the confirmation process is the most responsible way to learn more about her views on a number of important issues.

o The confirmation process will help Republicans, and all Americans, understand more about judge Sotomayor’s thoughts on the importance of the Supreme Court’s fidelity to the Constitution and the rule of law.

o Republicans are the minority party, but our belief that judges should interpret rather than make law is shared by a majority of Americans.

o Republicans look forward to learning more about Judge Sotomayor’s legal views and to determining whether her views reflect the values of mainstream America.

Wow. That’s devastating. Republicans want a “fair confirmation process” devoid of “knee-jerk judgments” so that they can take the time to study Sotomayor’s record. Actually that sounds about right. Maybe this is one of those communiques that require a special liberal decoder ring to reveal the “code words” and their obviously racists message.

Pressing on with points about Obama’s motivations in picking a nominee:

o Liberal ideology, not legal qualification, is likely to guide the president’s choice of judicial nominees.

o Obama has said his criterion for nominating judges would be their “heart” and “empathy.”

o Obama said he believes Supreme Court justices should understand the Court’s role “to protect people who may be vulnerable in the political process.”

o Obama has declared: “We need somebody who’s got the heart, the empathy, to recognize what it’s like to be a young teenage mom, the empathy to understand what it’s like to be poor or African-American or gay or disabled or old-and that’s the criterion by which I’ll be selecting my judges.”

For sure, quoting the President in your talking points is a sneaky way to get around the racist message that must be lurking in there … I sure could use that decoder ring.

Further points:

o Justice Souter’s retirement could move the Court to the left and provide a critical fifth vote for:

o Further eroding the rights of the unborn and property owners;

o Imposing a federal constitutional right to same-sex marriage;

o Stripping “under God” out of the Pledge of Allegiance and completely secularizing the public square;

o Abolishing the death penalty;

o Judicial micromanagement of the government’s war powers.

Ummm … so that’s it? Talking points that reiterate what the GOP has been saying for years? I’m missing where the RNC “fumbled” anything. Instead, it looks like The Hill got pwned.

Closing Dealerships Via Barack-Foolery?

I watched this story percolate throughout the day, wondering if there was anything of substance to it. Even now I’m not entirely sure how much is pure speculation and how much can be decisively proven. If any of it turns out to be true, however, then the repercussions could prove politically fatal. Doug Ross has the scoop:

A tipster alerted me to an interesting assertion. A cursory review by that person showed that many of the Chrysler dealers on the closing list were heavy Republican donors.

To quickly review the situation, I took all dealer owners whose names appeared more than once in the list. And, of those who contributed to political campaigns, every single one had donated almost exclusively to GOP candidates. While this isn’t an exhaustive review, it does have some ominous implications if it can be verified.

However, I also found additional research online at Scribd (author unknown), which also appears to point to a highly partisan decision-making process.

[…]

I have thus far found only a single Obama donor (and a minor one at that: $200 from Jeffrey Hunter of Waco, Texas) on the closing list.

Chrysler claimed that its formula for determining whether a dealership should close or not included “sales volume, customer service scores, local market share and average household income in the immediate area.”

In fact, there may have been other criteria involved: politics may have played a part. If this data can be validated, it would appear to be further proof that the Obama administration is willing to step over any line to advance its agenda.

Doug notes some anecdotal evidence to back up his theory, and reading through the various personal accounts from dealerships who claim to be successful, and yet who are being shut down, lends some credibility to the idea. As does the fact that the closing list is reportedly populated almost exclusively with Republican donors and/or those who gave money to Obama’s Democratic rivals. But the real test is in a comparison of the lists of dealerships staying open and those that are closing against a campaign donor database (which I haven’t done, but feel free to scrutinize them for yourself).

Nevertheless, the following bit of research from Red State strikes an ominous chord:

Eric Dondero recognizes some of the dealers’ names on the hit list:

“Vern Buchanan is a Republican Congressman from the Tampa Bay area. Robert Archer is the son of former Republican Congressman Bill Archer. John Culberson, a libertarian-leaning Conservative, is now the Congressman for that West Houston District. He was heavily supported in his election efforts by the Archers Family.”

“Additionally, James Crowley, owner of a Chrysler Dealership in Escondido, California is on the list to be closed. Crowley is a big backer of libertarian-leaning Republican Cong. John Campbell of Orange County.”

The list is heavy with influential Republicans and libertarians. Another name on the list is Ray Huffines, who owns a large dealerhsip in the Metro-Dallas/Ft. Worth area. The Huffines family have been major contributors to Rep. Ron Paul (R-TX) over the years.

It’s hard to know what to make of all this, but at first blush it certainly looks like the decisions to close dealerships may have been influenced by the political affiliations of the dealers. Under regular circumstances that would elicit a big shrug, but when Chrysler’s decisions are basically being made for them, well, that’s a whole ‘nother kettle of fish (via Reliapundit):

A lawyer for Chrysler dealers facing closure as part of the automaker’s bankruptcy reorganization said on Tuesday he believes Chrysler executives do not support a plan to eliminate a quarter of its retail outlets.

Lawyer Leonard Bellavia, of Bellavia Gentile & Associates, who represents some of the terminated dealers, said he deposed Chrysler President Jim Press on Tuesday and came away with the impression that Press did not support the plan.

“It became clear to us that Chrysler does not see the wisdom of terminating 25 percent of its dealers,” Bellavia said. “It really wasn’t Chrysler’s decision. They are under enormous pressure from the President’s automotive task force.”

Given the other sorts of thuggery that have been alleged in these Chrysler proceedings, this should come as no shock. But the fact that these closings will have to be approved by the creditors in the bankruptcy case lends a certain bit of intrigue to this case and raises a lot questions in my mind.

Assuming that the closings are motivated by political payback from Obama, how will that plan affect the stakeholders in the new company? If there really are profitable dealerships being shutdown just because they gave money to the wrong candidates, then it stands to reason that the remaining dealers will be something less than the cream of the crop, and therefore the new Chrysler will have a less than optimal distribution chain for its products. It’s not entirely clear why shutting down dealerships helps Chrysler anyway, since they are essentially the real customers of the carmaker, but it seems to me that those who plan to profit from the new venture would have something to say about the plan in the bankruptcy case. Presumably, they will want to protect their investment by challenging any plan for closings that does not maximize their return. If and when they do, it could get very interesting for Obama (again, assuming that any of this is true).

It should be noted that until some further confirmation surfaces, this story should be treated with a healthy dose of skepticism. Indeed, if it weren’t for the rather dictatorial way the Obama administration has dealt with the entire automaker bailout fiasco, these allegations of political payback would ring pretty hollow. Yet, considering the past bullying, the story definitely merits further consideration, so keep your eyes and ears open for more.

Sotomayor Nominated to SCOTUS

As a surprise to almost no one, Obama went with the candidate who fills the most quotas for his first Supreme Court pick. Since I’ve already covered what sort of Justice I think she’d be, I’ll just note that I think Obama picked the least qualified and most political of the three top contenders (Kagan and Wood being the others). Other than that, I don’t think her nomination will make much difference in the grand scheme of things.

Ilya Somin arrives at basically the same conclusion, and along the way takes special exception a particular statement from Sotomayor (my emphasis):

I am not yet sure what position to take on President Obama’s selection of Sonia Sotomayor. My general sense is that she is very liberal, and thus likely to take what I consider to be mistaken positions on many major constitutional law issues. I am also not favorably impressed with her notorious statement that “a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn’t lived that life.” Not only is it objectionable in and of itself, it also suggests that Sotomayor is a committed believer in the identity politics school of left-wing thought. Worse, it implies that she believes that it is legitimate for judges to base decisions in part on their ethnic or racial origins.

Expect to see that quote get much airtime as Republicans seek some ground from which to undermine Sotomayor’s nomination.

As for whether or not the Republicans should go to the mat on this, it seems to me like a bad idea. I think there are certainly some troubling aspects to Sotomator’s candidacy (such as her quote above), but there is also almost zero possibility that she will not be confirmed. With 59 Democrats in the Senate, there is also little hope of fillibustering the nomination. Accordingly, if Republicans choose this particular hill to die upon, they spend political capital for no gain, and risk losing the ability to generate opposition to any subsequent nominees who may have more substantive influence on the direction of the Court (e.g. a replacement for Kennedy or Scalia).

Since it appears that taking on Sotomayor’s nomination is rife with bad consequences for the GOP, I think it is a very safe bet that they will pull out all the stops in order to oppose her. This will prove once again that, sometimes, it takes great effort to earn minority party status. In that endeavor, expect the Republicans to leave no stone unturned.