Free Markets, Free People

Congress


Newspeak: Bi-Partisan Redefined

I won’t go into the whole kit’n kaboodle about how “bi-partisan” has recently come to mean “all of one party plus 3 of the other,” but instead point to this (supposedly) journalistic effort to shore up the new definition:

Harry Reid spokesman Jim Manley on Heath Shuler’s comment that Reid and Nancy Pelosi “failed” on bipartisanship.

It’s a good one

Quite the set up, eh? It must be something awfully devastating. The way that Glenn Thrush, the Politico “reporter” detailing Shuler’s walk into the wilderness, leads into the allegedly withering comments with little more than a snarky swipe at the Congressman’s dubious NFL career (“Manley sacks Shuler”)

Sacked

Sacked

one would think that Manley had something important to say. One would be wrong.

Before getting to Manley’s “sack” (in Thrush’s words), let’s take a look at the sole account of Shuler’s misdeed, which incidentally is from Glenn Thrush:

“In order for us to get the confidence of America, it has to be done in a bipartisan way,” Shuler said in Raleigh following an economic forum, according to the AP.

“We have to have everyone — Democrats and Republicans standing on the stage with the administration — saying, ‘We got something done that was efficient, stimulative and timely … I truly feel that’s where maybe House leadership and Senate leadership have really failed.”

Shuler, rumored to be mulling a ’10 Senate run, was one of 11 House Democrats to vote “no” on the stimulus and was already deep in Pelosi’s doghouse. Now he’ll have to build a Harry Reid wing.

Apostasy! How dare a Democrat call the incompetent leaders of the House and Senate incompetent. What is he, a Republican? It’s almost as if Shuler really bought into all that post-partisan claptrap that Obama spouted on the campaign trail. Well, Earth to Shuler. The campaign’s over. Time to get in line and do what your told like the rest of America.

But I kid.

According to Thrush, Manley had a much better takedown of Shuler’s insubordination:

Let me get this straight – this is coming from a guy who threw more than twice as many interceptions than touchdowns?

Maybe Someone should tell congressman Shuler that under the leadership of President Obama we have put together a bipartisan bill that will create or save 3 to 4 million jobs, and that We have been more than willing to work with our republican friends. We have accepted some of their ideas and will continue to do so. But not at the expense of creating jobs, investing in our future of helping the middle class. He can stand on a stage if he wants, but senate democrats are busy trying to pass legislation that will provide essential investments designed to create and save jobs.

Hmmm. I didn’t realize that Shuler’s career as an NFL quarterback was somehow relevant. Didn’t get that memo. But Thrush sure did:

In four years as an NFL QB — three with the Redskins, one with the Saints — Shuler threw 32 INTs while tallying only 15 TDs. Shuler was the third overall pick in the 1994 NFL draft and held out for a seven-year $19 million contract, but completed fewer than half his passes — with a rock-bottom 54.3 lifetime passer rating.

In 2008, ESPN rated him the 4th biggest draft bust in league history.

Ummm … OK. So, that’s it? That’s the “good one”? Cracking on Shuler’s life before becoming a Congressman? I mean, I see that Shuler’s point concerning the lack of bi-partisanship is roundly countered by Manley’s response to the effect of “Nuh’uh.” But is that really so devastating? Does that have anything to do with Shuler’s point about the failure to include Republican’s in the Mother of All Spending Bills? Judging from Thrush’s reporting, the “good one” was little more than a schoolyard taunt.

Toady in the Wilderness

Toady in the Wilderness

Perhaps the larger point was that Thrush simply wanted to generate some controversy so that he’d have something to write about. Take a critical remark from a supposed friendly and use it to elicit a stinging retort. That’s the world of lazy journalism and tabloid reports.

But Thrush misses the real story here in a spectacular fashion. Where Schuler takes a political risk in challenging the leaders of his own party by pointing to the actual lack of any Republicans signing onto the bill, Thrush instead focuses on the sarcastic response, completely ignoring the glaring fact that only three out of 219 have been brought on board. Manley’s retort may generate guffaws in the Democratic lunchrooms, but it’s hardly the caliber of a “good one” even for a sophomore in high school. Thrush has reduced himself to little more than a gossiping sycophant, content with relaying the latest insults delivered by the cool kids in order to ingratiate himself with the in-crowd. And in the process, he has perpetuated the myth that the stimulus bill is any way bi-partisan.

One would think there was a good story in there somewhere. That is, if one were really a journalist.


Lies, Damn Lies and Nancy Peolsi’s Charts

If you’re wondering,  her charts would be the “statistics”.

You’ve seen her “worst recession ever chart, right?  If not, here it is:

The Pelosi Chart

The Pelosi Chart

I know, I know – OMG! They’re right! Panic! Spend! Do something!

Hold on there Bunky. Check this out from Justin Fox:

Six Recessions

Six Recessions

Ahem. Uh, we’re not even in as bad a shape as the ’74 recession and haven’t yet approached the ’81 recession, have we? Hmmm.

But wait, there’s more. Economist William J. Polley takes us back to WWII:

All Post-WWII Recessions

All Post-WWII Recessions

Oh.  My.  So,  at the moment, we’re kind of in a middling recession (when you go all the way back to ’48) huh?

The lesson?

Beware of politicians with charts and an agenda.

Hope and change.

~McQ


$9.7 Trillion

That’s “trillion” with a capital “T“. And that’s the amount of money being spent by Congress to right our approximately $14.58 Trillion economy (source).

The stimulus package the U.S. Congress is completing would raise the government’s commitment to solving the financial crisis to $9.7

Capitol Spending

Capitol Spending

trillion, enough to pay off more than 90 percent of the nation’s home mortgages.

The Federal Reserve, Treasury Department and Federal Deposit Insurance Corporation have lent or spent almost $3 trillion over the past two years and pledged up to $5.7 trillion more. The Senate is to vote this week on an economic-stimulus measure of at least $780 billion. It would need to be reconciled with an $819 billion plan the House approved last month.

Again, that’s “trillion” with a “T”. In order to grasp the magnitude of that much spending, understand that you can reasonably round the number to $10 Trillion and thereby assume an extra $300 Billion, which is about the amount of TARP funds already pushed out the front doors of Congress. It’s also about one third of the amount being debated in Congress right now. In other words, the stimulus funds are pennies compared to amount of money already spent and/or promised.

Here’s another way to look at it (my emphasis):

The $9.7 trillion in pledges would be enough to send a $1,430 check to every man, woman and child alive in the world. It’s 13 times what the U.S. has spent so far on wars in Iraq and Afghanistan, according to Congressional Budget Office data, and is almost enough to pay off every home mortgage loan in the U.S., calculated at $10.5 trillion by the Federal Reserve.

It’s a lot of money. So why is it that we’re only privy to the debate (if it can be called that) over a measly 10% of the spending?

“We’ve seen money go out the back door of this government unlike any time in the history of our country,” Senator Byron Dorgan, a North Dakota Democrat, said on the Senate floor Feb. 3. “Nobody knows what went out of the Federal Reserve Board, to whom and for what purpose. How much from the FDIC? How much from TARP? When? Why?”

Financial Rescue

The pledges, amounting to almost two-thirds of the value of everything produced in the U.S. last year, are intended to rescue the financial system after the credit markets seized up about 18 months ago. The promises are composed of about $1 trillion in stimulus packages, around $3 trillion in lending and spending and $5.7 trillion in agreements to provide aid.

Many of us were disappointed with the spending habits of “compassionate conservativism” and lamented how it merely approximated socialist government policies with a friendly face. Of course, the alternative to Bush was real-deal socialist spending and a weakening of our national security.

Now we’re getting the full-on brunt of a dour-visaged collectivist government, employing a magician’s sleight of hand, and it makes the compassionate conservatism look positively stingy in comparison. While we argue over $800 Billion, another $9 Trillion is quietly being shoveled out the backdoor with little to no accountability.

When Congress approved the TARP on Oct. 3, Fed Chairman Ben S. Bernanke and then Treasury Secretary Henry Paulson acknowledged the need for transparency and oversight. The Federal Reserve so far is refusing to disclose loan recipients or reveal the collateral they are taking in return.

There’s no doubt that the Bush administration greased the skids, but Obama is running a rocket sled of spending, and there does not appear to be any end in sight.

One has to wonder when Atlas will finally shrug.


The Promise And The Reality (Part II) – Massive Waste, Fraud And Abuse Likely With Passage Of “Stimulus” Bill

The fear-mongering and panic inducing rhetoric used by the Obama administration and Congresional Democrats concerning the “stimulus” bill has set up another probable broken promise – this time on an unimaginably massive scale.

The Promise: The end of wasteful government spending and more accountability:

-Make Government Spending More Accountable and Efficient: Obama and Biden will ensure that federal contracts over $25,000 are competitively bid. Obama and Biden will also increase the efficiency of government programs through better use of technology, stronger management that demands accountability and by leveraging the government’s high-volume purchasing power to get lower prices.

- End Wasteful Government Spending: Obama and Biden will stop funding wasteful, obsolete federal government programs that make no financial sense. Obama and Biden have called for an end to subsidies for oil and gas companies that are enjoying record profits, as well as the elimination of subsidies to the private student loan industry which has repeatedly used unethical business practices. Obama and Biden will also tackle wasteful spending in the Medicare program.

The administration’s promise was transparency, bid competition, and new auditing resources and oversight boards.

The Reality: But this “stimulus” bill will most likely overwhelm any ability to properly monitor the spending anticipated. And, if such proper monitoring and regulating of spending is indeed required, it will drastically slow the spending process which is supposed to provide the stimulus.

The Obama administration’s economic stimulus plan could end up wasting billions of dollars by attempting to spend money faster than an overburdened government acquisition system can manage and oversee it, according to documents and interviews with contracting specialists.

The $827 billion stimulus legislation under debate in Congress includes provisions aimed at ensuring oversight of the massive infusion of contracts, state grants and other measures. At the urging of the administration, those provisions call for transparency, bid competition, and new auditing resources and oversight boards.

But under the terms of the stimulus proposals, a depleted contracting workforce would be asked to spend more money more rapidly than ever before, while also improving competition and oversight. Auditors would be asked to track surges in spending on projects ranging from bridge construction and schools to research of “green” energy and the development of electronic health records — a challenge made more difficult because many contracts would be awarded by state agencies.

The stimulus plan presents a stark choice: The government can spend unprecedented amounts of money quickly in an effort to jump-start the economy or it can move more deliberately to thwart the cost overruns common to federal contracts in recent years.

“You can’t have both,” said Eileen Norcross, a senior research fellow at George Mason University’s Mercatus Center who studied crisis spending in the aftermath of Hurricane Katrina. “There is no way to get around having to make a choice.”

So here’s the choice – remove the oversight, drop the transparancy, go with “no-bid” contracts and eschew the auditing process which will slow the spending to a trickle, or keep them in place and accept the molasses slow flow of supposed stimulus funds.

The probability is we’ll see the promise go by the boards. Why? Because of the insistence by both Congressional leaders and the administration that this bill be passed now, that it can’t wait and that it shouldn’t be debated (and by implication, shouldn’t be closely examined either).

“We don’t have the means to make sure we don’t blow through billions of dollars and give it to the wrong people,” said Keith Ashdown, chief investigator at the nonpartisan Taxpayers for Common Sense. “We’re on track to lose billions, if not tens of billions, to waste, fraud and abuse.”

Goodger said the federal contracting system has been extremely troubled in recent years. He emphasized the lack of trained employees to manage contracts, which he called a “human capital crisis.”

Stan Soloway, president of the Professional Services Council, a group that represents government contractors, does not oppose the stimulus package. But he said the government appears to lack the planning and the “infrastructure and architecture” upfront to manage the spending.

“Without it,” he said, “we’re going to have a repeat of what we’ve seen over and over and over, from major weapons systems to Katrina and Iraq.”

Hope and change.

~McQ


S-CHIP – An Incremental Move To Universal Health Care

If you harbored any doubt about the real purpose of the recent S-CHIP bill which expanded government health care, these excerpts should remove it:

Obama at a White House signing ceremony said, “I refuse to accept that millions of our children fail to reach their full potential because we fail to meet their basic needs” (Pulizzi/Johnson, Wall Street Journal, 2/4). He added, “In a decent society, there are certain obligations that are not subject to tradeoffs or negotiation, and health care for our children is one of those obligations” (Mussenden, Media General News/Richmond Times-Dispatch, 2/5). He said, “The way I see it, providing coverage to 11 million children [through SCHIP] is a down payment on my commitment to cover every single American” (Levey, Los Angeles Times, 2/5). He continued, “It is just one component of a much broader effort to finally bring our health care system into the 21st century,” adding, “I am confident that, if we work together, if we come together, we can finally achieve what generations of Americans have fought for and fulfill the promise of health care in our time” (Washington Times, 2/5).

House Speaker Nancy Pelosi (D-Calif.) said, “This is the beginning of the change that the American people voted for in the last election and that we will achieve with President Obama” (Los Angeles Times, 2/5). Rep. Charles Rangel (D-N.Y.) said, “I cannot think of a better investment than the health of our children” (Graham, “Triage,” Chicago Tribune, 2/4). Sen. John Kerry (D-Mass.) said, “We’ve waited far too long for this day. America’s kids should be guaranteed comprehensive care whether they need dental care, mental health, medical or surgical treatment” (Rhee, “Political Intelligence,” Boston Globe, 2/4). House Energy and Commerce Committee Chair Henry Waxman (D-Calif.) said, “While this bill is short of our ultimate goal of health reform, it is a down payment, and is an essential start” (New York Times, 2/5).

Keep your eye on the ball because this is moving very, very quickly.

~McQ


But Don’t You Dare Question My Patriotism

Looks like the same old stuff to me

Looks like the same old stuff to me

Change?  Where? From the NY Times via Newsbusters:

Mr. Obama called Ms. Collins and Mr. Specter, as well as Senator Olympia J. Snowe of Maine, another Republican expected to support the deal, to acknowledge they were acting against pressure from their party and, one official said, to thank them for their patriotism in helping advance the bill at a critical time.

So the man who bristled at any questioning of his patriotism now implies that those who won’t vote for this monstrosity of a bill are unpatriotic?  I told you that dissent would become unpatriotic.

Hope and change.

~McQ


The Stretch To Call Porkulus “Bi-Partisan”

For the Washington Post, it only takes 3 Republicans (out of approx 218 Congressional Republicans) to declare the “stimulus” bill to be a “bi-partisan” achievement.

As I said yesterday, and the WaPo article validates,  those three who will vote for this give the veneer of bi-partisan legitimacy to the bill and something the left and its fellow travelers will use to give them cover.

Calling this bill “bi-partisan” is like calling Andrew Sullivan’s obsession with Sarah Pallin “rational”.  But WaPo dutifully tries to frame the narrative:

The bipartisan deal was cut after two days of talks and would cut more than $100 billion from the $920 billion bill, dropping its cost to about $820 billion, if amendments added on the Senate floor are retained.

Of course the key phrase in that sentence is “if amendments added on the Senate floor are retained“. The bill must now be negotiated with the House and all of that which was cut may very well end up back in there. As Carl Cameron pointed out last night, you might expect bills with similar totals to be an easily negotiated, but that’s not the case. Different programs make up the amounts in each bill, and historically these negotiations haven’t lowered the totals for the final bill, but, instead, increased them – sometimes dramatically. And it is certainly possible those amendments added by Republicans could be discarded.

If that happens, and it is entirely possible, what will the three RINOs do then?

~McQ


Porkulus – It’s A Done Deal

political_pork

Well there’s an agreement on the Generational Theft Act of 2009. The squishy middle has capitulated.

As expected, just enough Republicans have signed on to ensure its passage. Names?

Specter for one:

Specter said Friday night that action was “very necessary,” and this bill, though not perfect, is better than inaction.

“I think no one could argue with the fact that the situation would be much worse without this bill,” Specter said at a news conference.

And of course, Susan Collins is the other (and Olympia Snowe is also reportedly going to vote for it). Voinavich and Martinez bailed. They’ll give this the veneer of bi-partisan legitimacy.

Oh, and the Senate has reportedly gotten the bill down to a miserly $780 to 805 billion depending on who you listen too.

Nancy Pelosi isn’t happy with the cuts:

“These cuts are very damaging — [the House bill] was put together very carefully. … The funding goes directly to school districts, they are stimulative because they maintain jobs instead of cutting jobs.”

If you believe the House bill was put together “very carefully”, then you will believe 500,000,000 Americans are losing their jobs every month.

But, even with the 3 Republicans, this monstrosity is all Democrat.

As an aside, our recent QandO poll asked which Senator was most likely to break for the bill. In that poll, Olympia Snow won with 33%. Interestingly, John McCain came in second at 29%. Specter came in third with 14%. Surprisingly, Susan Collins came in 4th with 7%.

~McQ


Democrats Seem Poised To Repeat The Mistakes Of Japan

It’s been interesting to watch the left attempt to paint the right as obsessive about tax-cuts, to the exclusion of any other method of stimulating the economy.   Josh Marshall called it “tax cut monomania”.  Of course careful readers who’ve followed this debate know that’s absolute nonsense.  The Republicans have bought into the premise that some level of government spending is necessary, except that it should be tightly targeted and provide immediate stiumlus.

Instead they’re faced with this bloated piece of garbage legislation derisively called the  “2009 Spend Your Grand Children and Great Grand Children into Debt bill”.

I noted Marshall’s appeal to authority (the sacred macroeconomic texts) yesterday and his claim that macroeconomists couldn’t exactly run controlled experiments to prove their point.  But upon reflection, I thought, that’s not precisely true.  While it may not fit the classic definition of a “controlled experiment”, Japan’s 2 decade long struggle to revive its economy is about as close as we’re going to get.

And you know what – the lessons learned from that say we’re about to commit the same mistakes they did.  President Obama claimed, last night, that spending on infrastructure was the way to go – that it would create jobs and stimulate the economy.  But Japan spent $6.3 trillion on construction-related public investment between 1991 and September of last year, and it did nothing of the sort.  Nope, paving over Japan accomplished little in terms of stimulating a down economy.

In the end, say economists, it was not public works but an expensive cleanup of the debt-ridden banking system, combined with growing exports to China and the United States, that brought a close to Japan’s Lost Decade. This has led many to conclude that spending did little more than sink Japan deeply into debt, leaving an enormous tax burden for future generations.

In the United States, it has also led to calls in Congress, particularly by Republicans, not to repeat the errors of Japan’s failed economic stimulus. They argue that it makes more sense to cut taxes, and let people decide how to spend their own money, than for the government to decide how to invest public funds. Japan put more emphasis on increased spending than tax cuts during its slump, but ultimately did reduce consumption taxes to encourage consumer spending as well.

Trade and tax cuts along with spending targeted at banking system was how Japan finally pulled out of its doldrums. We already have 700 billion aimed at our banking system, with only half of it spent. That leaves what, if you’re interested in not repeating the mistakes of an economy which has already gone thorugh this sort of thing?

Well it’s certainly not a huge NRA style spending spreed on public works. Japan spent trillions on public works and infrastructure and it didn’t do what all the economists said it would do. Instead Targeted spending on the banking system, tax cuts and the development of trade turned the tide.

Given the present bill it appears we’re going to “Buy American”, refuse tax cuts and spend hundreds of billions on roads and bridges. The Republicans objections to this mammoth pork and relief fest have nothing to do with “tax cut monomania”. It has much more to do with understanding the lessons learned from the Japanese experience and not wanting to repeat them. Democrats, in their arrogance, seem to believe that they can do the same thing as Japan but have a different outcome.

Insanity.

~McQ


Planning To Shut Up Right-Wing Talk Radio

Well, after Democratic assurances that the Fairness Doctrine wasn’t something they planned to pursue, Michigan Democratic Senator Debbie Stabenow muddied those waters again.  Appearing on the Bill Press Show she had this to say:

BILL PRESS: Yeah, I mean, look: They have a right to say that. They’ve got a right to express that. But, they should not be the only voices heard. So, is it time to bring back the Fairness Doctrine?

SENATOR DEBBIE STABENOW (D-MI): I think it’s absolutely time to pass a standard. Now, whether it’s called the Fairness Standard, whether it’s called something else — I absolutely think it’s time to be bringing accountability to the airwaves. I mean, our new president has talked rightly about accountability and transparency. You know, that we all have to step up and be responsible. And, I think in this case, there needs to be some accountability and standards put in place.

BILL PRESS: Can we count on you to push for some hearings in the United States Senate this year, to bring these owners in and hold them accountable?

SENATOR DEBBIE STABENOW (D-MI): I have already had some discussions with colleagues and, you know, I feel like that’s gonna happen. Yep.

Really.  “Accountability”?  What sort of “accountability” is Sen. Stabenow talking about?

What she means is she’d like to see the bane of the Democrats, the one venue that regularly frustrates their efforts, out of business or seriously handicaped.

The arguments for the previous Fairness Doctrine were pitifully inadequate and certainly an infringement of free speech, but radio was a dominant medium at the time and that’s how supporters justified their attempted control of what could or couldn’t be said.

Now, however, even those marginal arguments are obsolete.  The choices of media have expanded exponentially.  The internet has changed the whole game.  To pretend that “standards” and “accountability” must be imposed on a very small part of this media spectrum while ignoring the rest is laughable.

So this comes down to power and control.  And it requires a willingness to ignore the tenets of liberty and heritage of free speech embodied in the Constitution.  I have no doubt that Democrats are more than willing to do exactly that in their effort to consolidate their power.

~McQ