Free Markets, Free People

Politics

The “Deregulation” Bogeyman

As Dale has mentioned before, ginning up support for massive federal expenditures and deepening deficits was much easier for FDR because he had Nazis. Obama does not have any such luxury, so he has to invent an equivalent enemy. Luckily for him, decades of propaganda have cemented the idea into many heads that capitalism=rightwing=nazi, leading to the inexorable conclusion that anyone or thing whose primary purpose is to make profit is dangerous and must be controlled.

Dovetailing nicely with that need is the meme that deregulation is to blame for the current financial mess. Although it’s a fairly ridiculous claim (as I’ve pointed out before), that won’t stop “studies” like this from being published and reported on:

$5 BILLION IN POLITICAL CONTRIBUTIONS BOUGHT WALL STREET FREEDOM FROM REGULATION, RESTRAINT, REPORT FINDS

Steps to Financial Cataclysm Paved with Industry Dollars

March 4 – The financial sector invested more than $5 billion in political influence purchasing in Washington over the past decade, with as many as 3,000 lobbyists winning deregulation and other policy decisions that led directly to the current financial collapse, according to a 231-page report issued today by Essential Information and the Consumer Education Foundation.

The report, “Sold Out: How Wall Street and Washington Betrayed America,” shows that, from 1998-2008, Wall Street investment firms, commercial banks, hedge funds, real estate companies and insurance conglomerates made $1.725 billion in political contributions and spent another $3.4 billion on lobbyists, a financial juggernaut aimed at undercutting federal regulation. Nearly 3,000 officially registered federal lobbyists worked for the industry in 2007 alone. The report documents a dozen distinct deregulatory moves that, together, led to the financial meltdown. These include prohibitions on regulating financial derivatives; the repeal of regulatory barriers between commercial banks and investment banks; a voluntary regulation scheme for big investment banks; and federal refusal to act to stop predatory subprime lending.

The quote above comes directly from the report’s financial backers, Essential Information and the Consumer Education Foundation. The former is a non-profit that was created by Harvey Rosenfield, a lawyer who also controls the advocacy group Consumer Watchdog, formerly known as the Foundation for Taxpayer and Consumer Rights. The latter is an entity created by Ralph Nader. None of that information is found either in the press release, or in the news stories reporting on (i.e. quoting) the release.

The Hill reports:

The organizations are a nonpartisan, nonprofit advocacy groups which push for stronger consumer protection laws and to curb “excessive corporate power.”

The report alleges that excessive deregulation of the financial sector combined with undue influence from the billions spent in lobbying and political contributions resulted in the current financial crisis.

And CBS’ Political Hotsheet finds:

The two men behind the report are California lawyer Harvey Rosenfield of the nonprofit Consumer Education Foundation and Robert Weissman of Essential Information, a Washington nonprofit “that seeks to curb excessive corporate power.”

The report argues that the lobbying and contributions kept financial derivatives from being regulated, led to the repeal of regulatory barriers between commercial banks and investment banks and kept the government from stepping into halt predatory subprime lending.

The remainder of the reporting is merely quoting and paraphrasing the press release. Absolutely zero analysis of the actual report is offered. Why would they report anything else? Well, just looking at the press release provides one clue:

Financial deregulation led directly to the current economic meltdown. For the last three decades, government regulators, Congress and the executive branch, on a bipartisan basis, steadily eroded the regulatory system that restrained the financial sector from acting on its own worst tendencies. “Sold Out” details a dozen key steps to financial meltdown, revealing how industry pressure led to these deregulatory moves and their consequences:

1. 1. In 1999, Congress repealed the Glass-Steagall Act, which had prohibited the merger of commercial banking and investment banking.
2. Regulatory rules permitted off-balance sheet accounting — tricks that enabled banks to hide their liabilities.
3. The Clinton administration blocked the Commodity Futures Trading Commission from regulating financial derivatives — which became the basis for massive speculation.
4. Congress in 2000 prohibited regulation of financial derivatives when it passed the Commodity Futures Modernization Act.
5. The Securities and Exchange Commission in 2004 adopted a voluntary regulation scheme for investment banks that enabled them to incur much higher levels of debt.
6. Rules adopted by global regulators at the behest of the financial industry would enable commercial banks to determine their own capital reserve requirements, based on their internal “risk-assessment models.”
7. Federal regulators refused to block widespread predatory lending practices earlier in this decade, failing to either issue appropriate regulations or even enforce existing ones.
8. Federal bank regulators claimed the power to supersede state consumer protection laws that could have diminished predatory lending and other abusive practices.
9. Federal rules prevent victims of abusive loans from suing firms that bought their loans from the banks that issued the original loan.
10. Fannie Mae and Freddie Mac expanded beyond their traditional scope of business and entered the subprime market, ultimately costing taxpayers hundreds of billions of dollars.
11. The abandonment of antitrust and related regulatory principles enabled the creation of too-big-to-fail megabanks, which engaged in much riskier practices than smaller banks.
12. Beset by conflicts of interest, private credit rating companies incorrectly assessed the quality of mortgage-backed securities; a 2006 law handcuffed the SEC from properly regulating the firms.

The damning list offers only one instance of actual deregulation (the Glass-Steagall Act), at least seven instances of regulation that the authors simply disagree with (nos. 2-5, and 8-10), one claim each of “global regulators” and ratings agencies failing to do their respective duties (nos. 6 and 12), and two allegations that federal regulators didn’t pursue their jobs aggressively enough (7 and 11). So, despite the bold claim that “Financial deregulation led directly to the current economic meltdown,” the authors produce almost no evidence to support their conclusion.

It seems like that may have been a little more newsworthy than simply regurgitating the press release.

Then there is the fact that a Ralph Nader organization is partly responsible for the funding. Not only has the man run for president four times, one of those times perhaps leading to the election of George W. Bush, he’s notorious for his left-wing politics, including having a serious distaste for corporate America and capitalism.

Could be relevant, no?

But the real failure of journalism here was to take anything that Harvey Rosenfield has to say at face value.

The Foundation for Taxpayer and Consumer Rights (FTCR) [owned by Essential Information creator, Harvey Rosenfield] has decided to re-brand itself as “Consumer Watchdog.” Will a simple name change help shore-up the eroding reputation of this “consumer group?”

Few days pass without someone from FTCR pontificating in a newspaper story or TV report. Agents of this organization often are quoted — without explanation of their credentials — about auto, fire or health insurance, gasoline pricing, stem-cell research, or just about any public policy debate on the FTCR’s mind.

[...]

Behind the pithy quotes from FTCR’s leaders lies an organization with too much to hide and too many faults to be taken seriously anymore. It has survived by quietly pocketing millions of dollars in fees stemming from an initiative it wrote and sponsored nearly two decades ago. Along the way, it has engaged in hypocritical and speculative stock trading, enjoyed the secret patronage of wealthy trial donors, and either cozied up to or bullied politicians. All of this came despite operating under IRS rules as a “public-benefit” charity.

[...]

Of course, the public has no idea what is really motivating FTCR because its agents refuse to disclose their financial backers. Their reasons for hiding the facts are insulting to the average Californian’s intelligence.

FTCR declined to release a list of donors on its website by ludicrously equating their work to the civil rights movement in the South. It’s refusal to list details about its financial backers is particularly galling since FTCR spends a lot of time lambasting politicians for alleged corruption surrounding their own political donations.

One source of income is clear, thanks to some available public disclosure forms. Following the disastrous 1994 Northridge earthquake, founder Rosenfield extracted $5 million in a consumer-protection settlement with Allstate Insurance. The money was placed in a new group he controls, the Consumer Education Foundation, which was supposed to prevent the kinds of insurance disasters that followed the Northridge quake.

But nearly a decade after the group was formed, its biggest accomplishment appears to be paying Rosenfield a $100,000 salary and writing a few grant checks … including to Rosenfield’s own FTCR, to fund its operations. One wonders what the judge in the Allstate settlement would think about this cozy relationship, let alone why Northridge consumers have yet to see much benefit from the $5 million that was paid out supposedly for the public good.

It gets even more absurd.

Rosenfield’s Consumer Education Foundation invested some of its Northridge windfall in Enron stock — the Texas company that bilked California consumers out of billions of dollars. This laughable investment, which the CEF was forced to reveal in disclosure statements, is almost too incredible to believe. The “consumer” foundation put its money in one of the biggest consumer ripoff companies in U.S. history.

Enron wasn’t the only hypocritical stock purchase made by the Rosenfield’s Consumer Education Foundation. The group purchased stock in Abbott Labs, Amgen, Merck, Pfizer, Idec Pharmaceuticals, Johnson and Johnson, and Proctor and Gamble. Meanwhile, FTCR would soon get busy lambasting politicians for accepting campaign donations from these same companies. And while FTCR has lashed out at automobile and chemical companies, the “consumer” foundation has invested in Clorox, DuPont, General Motors, Ford Motors, and Toyota Motor Credit.

There’s more on Rosenfield’s endeavors here (scroll through the comments to the ftcrfollies.org stuff), but the original site is now defunct, so caution is warranted.

In any case, it seems that Rosenfield’s alleged background as an agent provocateur should raise enough red flags to warrant at least a mention that perhaps the report he’s funded (written?) should be taken with a grain of salt. Instead, we get news stories that basically repeat exactly little more than the juiciest allegations from the press release, absolutely zero analysis of the actual report (or the press release for that matter), and nothing more than the bare bones information regarding the provenance of the report.

With apologies to Mike Judge, “What would you say ya do here, MSM?”

Podcast for 03 Mar 09

In this podcast, Bruce, Bryan, and Dale talk about the president’s new budget, and the end of the Post-WWII global financial system.

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.

Romney wins CPAC poll

Mitt Romney won the presidential straw poll at CPAC today:

One day after delivering a forceful campaign-style speech to the conference of conservative activists, former Massachusetts Gov. Mitt Romney won his third straight CPAC Straw Poll, earning 20 percent of the vote on a ballot that included nine other Republicans who could seek the party’s presidential nomination in 2012.

Romney’s straw poll win at the 2007 Conservative Political Action Conference helped to elevate Romney from a little-known governor to a bona fide presidential frontrunner, and his narrow victory in last year’s straw poll reaffirmed his support among conservative voters. But Romney failed to win the Republican nomination, which was eventually won by Arizona Sen. John McCain.

In the 2009 poll, Louisiana Gov. Bobby Jindal came in second with 14 percent of the vote, while Alaska Gov. Sarah Palin and Texas Rep. Ron Paul tied at 13 percent. Jindal and Palin did not attend the conference.

Rounding out the straw poll results were former House speaker Newt Gingrich at 10 percent, former Arkansas Gov. Mike Huckabee at seven percent, South Carolina Gov. Mark Sanford at four percent, former New York City mayor Rudy Giuliani at three percent, Minnesota Gov. Tim Pawlenty at two percent, and Florida Gov. Charlie Crist at one percent. Nine percent of poll participants were undecided.

Glad to see the folks at the conference aren’t taking Tax Hike Mike too seriously, though I’m a bit bummed about Mark Sanford’s numbers. I’m surprised to see how well Ron Paul did. I know C4L had a presence at CPAC, looks like it paid off.

Here is a better look at things from CPAC:

Here’s A Bit Of A Surprise

Eric Holder talked about reviving the assault gun ban. But he’s meeting opposition from unexpected quarters.

Senate Majority Leader Harry Reid will join Speaker Nancy Pelosi (D-Calif.) in opposing any effort to revive the 1994 assault weapons ban, putting them on the opposite side of the Obama administration.

Reid spokesman Jim Manley said the Nevada Democrat will preserve his traditional pro-gun rights voting record.

“Senator Reid would oppose an effort (to) reinstate the ban if the Senate were to vote on it in the future,” Manley told The Hill in an e-mail late Thursday night.

There’s a pretty political explanation for the opposition.

A) gun bills are always losers for Democrats. It seems that Pelosi and Reid have finally figured out (at least in this case) that it is rather stupid to hand your opposition ammo (no pun intended).

B) unpopular legislation like this wastes time and goodwill. They have a much more ambitious plan to sell us down the river than piddling stuff like this, and they don’t want to be distracted by something that will be virtually ineffective the second it is signed into law (but put the pro-gun lobby front and center for a while).

C) Reality.

A number of House Democrats lost their seats after being targeted by the National Rifle Association for voting for the 1994 ban.

And finally, it is a way to make sure the Obama administration knows that it is Congress they must coordinate these things with before they go shooting their mouths off. Eric Holder said, without such coordination, that he planned on trying to reinstate the assault weapons ban. Pelosi and Reid used the opportunity to send a message.

That said, be aware that Holder certainly appears to have an anti-gun agenda, or, at least, so it seems.

~McQ

Transparency Redefined

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.

What website?

“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:

Recovery.gov breakdown of what the $787 Billion is going to

Recovery.gov breakdown of what the $787 Billion is going to

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?

Recovery money.  Now in bubble form!

Recovery money. Now in bubble form!

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.

On Deck: Universal Health Care (Updated)

According to Ezra Klein, the Obama administration intends to finagle universal health care coverage out of its budget proposal, including an individual mandate:

I’ve now been able to confirm with multiple senior administration sources that the health care proposal in Obama’s budget will have a mandate. Sort of.

Here’s how it will work, according to the officials I’ve spoken to. The budget’s health care section is not a detailed plan. Rather, it offers financing — though not all — and principles meant to guide the plan that Congress will author. The details will be decided by Congress in consultation with the administration.

One of those details is “universal” health care coverage.

Some of you may recall that Obama, while in campaign mode, consistently denied that he wanted to introduce mandates as part of his health care package. Paul Krugman cited that opposition as the major difference between Obama and Hillary Clinton:

Let’s talk about how the plans compare.

Both plans require that private insurers offer policies to everyone, regardless of medical history. Both also allow people to buy into government-offered insurance instead.

And both plans seek to make insurance affordable to lower-income Americans. The Clinton plan is, however, more explicit about affordability, promising to limit insurance costs as a percentage of family income. And it also seems to include more funds for subsidies.

But the big difference is mandates: the Clinton plan requires that everyone have insurance; the Obama plan doesn’t.

Mr. Obama claims that people will buy insurance if it becomes affordable. Unfortunately, the evidence says otherwise.

Now that he’s been elected it’s presto hope’n change-o, and voila! Mandates!

Ezra Klein notes that the difference between the pre- and post-election plans is based on one word in the budget — “universal”:

That word is important: The Obama campaign’s health care plan was not a universal health care plan. It was close to it. It subsidized coverage for millions of Americans and strengthened the employer-based system. The goal, as Obama described it, was to make coverage “affordable” and “available” to all Americans.

But it did not make coverage universal. Affordability can be achieved through subsidies. But without a mandate for individuals to purchase coverage or for the government to give it to them, there was no mechanism for universal coverage. It could get close, but estimates were that around 15 million Americans would remain uninsured. As Jon Cohn wrote at the time, “without a mandate, a substantial portion of Americans [will] remain uninsured.”

In essence, unless everyone is forced to buy insurance, there is no “universality,” and the benefits of large participation in the insurance pool cannot be realized. An even shorter version is, if healthier people opt out, then sicker people can’t sponge off them.

The budget — and I was cautioned that the wording “is changing hourly” — will direct Congress to “aim for universality.” That is a bolder goal than simple affordability, which can be achieved, at least in theory, through subsidies. Universality means everyone has coverage, not just the ability to access it. And that requires a mechanism to ensure that they seek it.

Administration officials have been very clear on what the inclusion of “universality” is meant to communicate to Congress. As one senior member of the health team said to me, “[The plan] will cover everybody. And I don’t see how you cover everybody without an individual mandate.” That language almost precisely echoes what Senate Finance Chairman Max Baucus said in an interview last summer. “I don’t see how you can get meaningful universal coverage without a mandate,” he told me. Last fall, he included an individual mandate in the first draft of his health care plan.

The administration’s strategy brings them into alignment with senators like Max Baucus. Though they’re not proposing an individual mandate in the budget, they are asking Congress to fulfill an objective that they expect will result in Congress proposing an individual mandate. And despite the controversy over the individual mandate in the campaign, they will support it. That, after all, is how you cover everybody.

So it looks like you better start scarfing down those cheeseburgers, eating transfats, smoking cigarettes, or whatever it is you do that’s not considered healthy, because once the federal government pays for health care (which is what individual mandates essentially works out to), then it also has the power to determine what “healthy” means. After all, since everyone will be pulling from the same health care pot, and since each claim on that pot diminishes what someone else can get, then each claim must be a legitimate one as weighed against all the competing interests. Because the viability of the system depends on healthy people making much fewer claims than sick people against the collective health care resources, the government now has a vested interest in making people healthier, whether they like it or not.

Another way to put it is that we will have entered a Pareto optimal world where no one can change their position for the better (i.e. receive more of the pooled benefits) without hurting someone else. Whereas in a competitive market system, each person can get at least as much health care as he or she wants to buy and can afford, in a Pareto optimal world, we are competing for the same scarce resources (health care dollars), and our claims are granted based on a a third party’s (the government’) determination of worthiness. No longer can we get what we can afford, we get a predetermined portion of what the government decides to pay for. That, of course, is why there are 6+ month waiting lists for routine health care in places like Canada and the UK.

Possibly the most depressing result of yoking America with universal health care, is that we can pretty much kiss medical and pharmaceutical innovation good bye.

Government run health centralizes the risks of exploring new technologies, medicines, techniques, etc. Centralized risk translates into (i) observing a very cautious approach to advances, and (ii) the politicization of research … From a purely capitalist point of view, opportunites that might have been pursued otherwise, are foregone since those who accept the risks of pursuing them do not get to maximize their reward, so instead those advances must come from the government. With government as the sole innovator, there are now two types of risk (1) the risk of failure (i.e. spending gobs of money on something that does not deliver as promised, or that costs significantly more than the benefit), and (2) the political risks (i.e. what politicians face for advocating spending on projects that either fail or that don’t disproportionately benefit favored voters). The result is that risk is increased overall, and fewer innovations are realized.

America is pretty much the last industrialized nation to still have a (semi) private health care system, which should be understood to include the pharmaceutical industry (as a supplier of that health care system). What would happen to the growth and advances we’ve realized over the past few decades if (when?) we adopt universal health care? Where will the innovation come from? Who will take the risks? Without the proper incentives, and indeed with some of the worst possible incentives as the only driving force to creation, I fear that the scientific and medical Atlas will shrug.

I don’t mean to say that there will be no breakthroughs ever again, but the pace will be slowed dramatically. That’s because, one the government is in charge of paying for health care, it will also be in charge of paying for medicines. As we’ve already seen around the world, drug companies will be forced to sell their wares for much less than the (legal) monopoly prices they charge now. The result, therefore, will be much less risky and expensive research into new drugs that may never come to market, and much more emphasis on improving old drugs so as to continue to pay for further research.

Surely the federal government will pony up money for research into some diseases. But then the government will be in charge of picking winners and losers when it comes to whose diseases will get cures and whose won’t. To imagine what this would look like, just think back to how AIDS and breast cancer research dollars were successfully lobbied for, despite neither affecting anywhere near as many people as other deadly diseases.

In the end we will be left with less individual freedom, worse health care, and fewer prospects for any improvement in either. That is not the change I was hoping for.

UPDATE: Tom Maguire helpfully reminds us of how the health care debate progressed during the Democratic primary season:

For folks whose memories have blessedly erased any recollection of the endless Democratic candidates debates, let me toss in a brief reminder. Obama claimed that he would offer health insurance subsidies so generous that most folks would volunteer to sign up. Hillary mocked that, insisting that the young and healthy would decline to subsidize the rest of us, especially since they could not subsequently be denied coverage on the basis of pre-existing conditions; her plan included a mandate obliging everyone to buy health insurance, like it or not (as in Massachusetts). Hillary then diligently ducked the “or else” question of what penalties she would inflict on the young, helathy and recalcitrant who would prefer to hold off on buying insurance until they were sick. As a nostalgia piece here is a link to a lefty wondering why his party was so committed to forcing young, healthy members of the working class to subsidize the rest of us on health care; that seems like a good question but I am long resigned to not being smart enough to be a lefty.

Aww, Tom. You’re plenty smart enough. Just not angry, bitter or jealous enough.

As for the “or else” question, Obama and the Congress won’t be able to duck that one. I can only imagine what sort of sword they intend to dangle of recalcitrant ,comrades citizens who refuse to sign up for the program.

MYOB

In my last post, I argued that the Seventeenth Amendment should be repealed.  Once upon a time, Americans from across the political spectrum could agree on at least one principle of good governance: federalism, or more generally, localized decision-making.

To put a fine point on it:

  • Your state knows its own values and interests better than the national government does.
  • Your county knows its own values and interests better than the state government does.
  • Your city knows its own values and interests better than the county government does.
  • Your neighborhood knows its own values and interests better than the city government does.
  • Your household knows its own values and interests better than the neighborhood does.
  • And you arguably know your own particular values and interests better than other members of your household do.

Depending on who’s won lately, the people in power at higher levels of organization may approximately reflect your values and interests, but the further away they get, the less likely this is to be the case.  Simply put, the more people you have to represent, and the further they are away from you, the harder it is to faithfully represent them all.

Even if your Congressman is a tremendously intelligent and virtuous man, what he doesn’t know about his constituents’ beliefs and circumstances could fill libraries.

So as a general rule, it makes sense that we should want matters to be decided at the most local level possible.  If you have a personal problem, you have the greatest incentive to fix the problem, your values will determine what trade-offs you’re comfortable with, and the matter probably shouldn’t leave your household — or at worst, your peer groups.  If it doesn’t naturally spill over into other people’s lives, they don’t want you to make it their problem.

Largely because so much power has accrued at higher levels of government, people increasingly turn to the impersonal and ignorant forces of those higher levels to handle their problems.  Today, the federal government has so much power, reaching down to the most local possible decisions, that people focus an inordinate amount of their attention and aspirations on who controls it and what they do with it.  Everyone’s fate is determined by whose collective hand controls the Biggest Lever.

I cannot stress enough how dangerous a development this is. Let’s leave aside, for the moment, how centralized control and planning tend to double down on mistakes rather than correct them.  They have much more insidious effects.

Making everything a national issue has poisoned the national debate.  It is a significant cause of the Culture War (see Roe v Wade, or Defense of Marriage Act).  It has contributed to making politics personal, and it’s why so many people have become emotionally invested in the person of the President.  Think about how much more common it has become for both parties to use the language and imagery of dictators to describe the president — usually when we disagree with him.

Bottom line: it is difficult to tolerate your neighbor’s difference of opinion if his opinion controls your life.  It has become too difficult to mind one’s own business.

Let that marinate for a minute, and I’ll move on to my suggestion for one solution. Continue reading

“This is our house now”

Remember the organization that refused to pay its own workers a “living wage” even while it agitated for higher minimums for other businesses? The same organization that has been the subject of several voting fraud investigations? And the same one to receive $2 Billion from the stimulus bill? Well, its now in the process of “peacefully” occupying homes that are in the process of foreclosure. That organization, of course, is ACORN:

A community organization breaks into a foreclosed home in what they are calling an act of civil disobedience.

The group wants to train homeowners facing eviction on peaceful ways they can remain in their homes.

[...]

“The mortgage went up $300 in one month,” said Hanks, former homeowner.

ACORN fights foreclosures by breaking the law

ACORN fights foreclosures by breaking the law


She says the bank refused to modify her loan and foreclosed, kicking her out of the house in September.

The community group ACORN calls Hanks a victim of predatory lending.

“This is our house now,” said Louis Beverly, ACORN.

And on Thursday afternoon, they literally broke the foreclosure padlock right off the front door and then broke into the house, letting Hanks back in for the first time in months.

“We are actually trespassing, and so this is a way of civil disobedience to try to stay into our house,” said Beverly. “Legally it’s wrong, but homesteading is the only means that she has left to stay into her house. And we feel as though this is the right thing to do at this particular time to save this family.”

So even though they know it’s “legally wrong” ACORN is going to go ahead and do it anyway? Maybe they could take some of the $2 Billion they received and help Ms. Hanks pay her mortgage or even renegotiate it. Presumably ACORN received the stimulus money to do something other than commit criminal acts. Didn’t it?

[HT: Rick Moore]

Jack’s Friends

Political Wire writes that tomorrow might be an interesting day in Congress, corruption-wise.  It seems that some things have been going on around Congressman John Murtha (D-PA) which may not be entirely copacetic.

There’s a potentially big story brewing on Capitol Hill…  Apparently 104 members of Congress of both parties — 42 Republicans and 62 Democrats — secured earmarks for a lobbying firm linked to Rep. John Murtha (D-PA) in a single bill. The earmarks were inserted in a bill Murtha controlled as the defense appropriations subcommittee chairman.

It looks like business as usual, of course, until we learn that the company’s executives and clients seem to be big, big political donors to Rep. Murtha.

So, I guess it is business as usual.

This Could Be Interesting

If they can get this passed, it might shake things up in the states rights arena:

This week the Oklahoma House of Representatives Rules Committee voted unanimously to support House Joint Resolution 1003 authored by state Rep. Charles Key. Key’s proposal should now be headed to the floor of the House where I look forward to supporting it.

HJR 1003 seeks to reassert Oklahoma’s sovereignty under the 10th Amendment to the U.S. Constitution, and according to the resolution’s language, serves as “Notice and Demand to the federal government, to cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers.

The 10th Amendment states: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.”

Of course it will end up in court if passed, but I would love to see it upheld and it lead to more 10th amendment exceptions leading toward a reestablishment of more states rights.

Read the rest of the article – Rep. Jason Murphey makes a good case concerning levels of influence and representation. His point about those with money driving national politics is well taken.

~McQ