Free Markets, Free People

Republicans


The Republican Alternative Budget

It can be summed up in one sentence: They still don’t get it.

Tax cuts are great, but they’re not real tax cuts unless there’s a commensurate cut in spending. If there’s no cut in spending, they’re simply taxes which are being deferred. And that is precisely what the Republicans offer in their alternative. Long on tax cuts and long on spending. Their only claim to fame is they don’t spend as much as the Obama budget. Well, you’d have to be insane to spend as much as the Obama budget, but claiming that your plan is better because you spend less isn’t much of a recommendation.

For instance:

Discretionary Spending. The budget gives priority to the Federal Government’s most important obligations, national defense and veterans’ benefits. All other appropriated spending is level-funded for fiscal years 2010-14, and then increased at a moderate rate through 2019. The final allocation of these and other amounts will be determined by the Committee on Appropriations.

As long as we’re running a deficit, we can’t afford “increased spending” even at a “moderate rate”. What part of that can’t these people seem to get through their heads? Of course, that means they have to bring the bad news to the people that spending for government provided goodies isn’t going to go up, and, in fact, may go down. And the people haven’t exactly been kind to those who do so. Talking about it is one thing, but unfortunately actually doing it is detrimental to a politician’s career. So their cowardice is understandable if still unacceptable (given their rhetoric)

Mandatory Spending. Total mandatory spending increases by an average of 3.9 percent per year for the next 10 years. This is slightly slower growth than projected in the Congressional Budget Office baseline and the Obama/Democratic budget. It provides for a sustainable growth rate to assure the viability of these programs in the future.

Here is the budget killer – mandatory spending. And what to the Republicans propose? Growing it at almost 4% a year. The inflation rate is what? Well, even now, it certainly isn’t 4%. And while it may rise, you can’t assume that. So this does precisely what they claim their budget does:

To Control the Nation’s Debts. It halts the borrow-and-spend philosophy that brought about today’s economic problems, and puts a stop to heaping ever-growing debts on future generations.

It does not end the “borrow-and-spend philosophy” at all. It merely slows the rate of borrow-and-spend. The claim is nonsense on a stick.

And to cap it all off, they buy into the premise of some sort of universal or nationalized health care.

To Fulfill the Mission of Health and Retirement Security. The budget reforms the health care marketplace by making quality coverage affordable and accessible for every American regardless of pre-existing health conditions. It reinforces the decision-making of patients and their doctors, not government bureaucrats; and it reforms Medicare and Medicaid to make them sustainable. The budget also advances the cause of strengthening Social Security.

So instead of buttressing and supporting the concept of private health care and less government intrusion, the Republicans again commit to the concept of government involvement, but just not at the level of the Democrats. And they also want us to believe this isn’t going to cost much as well.

Disappointing is a mild word for what I see in their proposals. They’re again Democrat lite, buying into all the programs just claiming theirs doesn’t spend as much, and again proposing tax deferral as “tax cuts”, completely ignoring the need to cut spending to make those deferrals actual and permanent cuts.

No wonder they put it out on April 1st.

~McQ

[My latest Examiner.com article]


Fact Checking Obama

Believe it or not, it was AP which undertook this job. And although superficial, it was interesting to see the agency actually attempt some objectivity. That said, the one that really stands out as almost laugh outloud funny was where Obama did a little chiding of the Republicans:

First of all, I suspect that some of those Republican critics have a short memory, because, as I recall, I’m inheriting a $1.3 trillion deficit, annual deficit, from them.

Well, first of all, only Congress can appropriate money and for the last two years, when that 1.3 trillion was pile up, it was appropriated by a Democratic Congress.

Yes, Paulson rolled them and they ran around like a bunch of chickens with their heads cut off – and that includes Republicans – but trying to lay this deficit solely at the feet of the Republicans is simply laughable.

Laughable point two came when Obama claimed “In this budget, we have made the tough choices necessary to cut our deficit in half by the end of my first term even under the most pessimistic estimates.”

Well, that’s just not true. The “most pessimistic estimates” (in this case the CBO) essentially disagree with his point.

The Congressional Budget Office forecasts that Obama’s spending plan would leave a deficit of $672 billion by the end of 2013. Explaining the differences between his projections and CBO’s, Obama said his administration projects a higher growth rate.

It is also important to understand that “cutting the deficit in half” is a mask for the fact that it means he’ll still be running up a record deficit of over 600 billion a year. That is not progress in deficit reduction or  “fiscally responsible” government. But it sounds good when thrown out there in a sound bite. Here, maybe this will help make the point:

wapoobamabudget1

As you can see, both the most “pessimistic” and his own projections see huge deficits projected well into the future – and, as many economists have said, unsustainable deficits.

So let’s get a few facts straight concerning spending and deficits then and now:

-President Bush expanded the federal budget by a historic $700 billion through 2008. President Obama would add another $1 trillion.

-President Bush began a string of expensive financial bailouts. President Obama is accelerating that course.

-President Bush created a Medicare drug entitlement that will cost an estimated $800 billion in its first decade. President Obama has proposed a $634 billion down payment on a new govern ment health care fund.

-President Bush increased federal education spending 58 percent faster than inflation. President Obama would double it.

-President Bush became the first President to spend 3 percent of GDP on federal antipoverty programs. President Obama has already in creased this spending by 20 percent.

-President Bush tilted the income tax burden more toward upper-income taxpayers. President Obama would continue that trend.

-President Bush presided over a $2.5 trillion increase in the public debt through 2008. Setting aside 2009 (for which Presidents Bush and Obama share responsibility for an additional $2.6 trillion in public debt), President Obama’s budget would add $4.9 trillion in public debt from the beginning of 2010 through 2016.

Yes, Bush did contribute to an expanded deficit. But Obama’s plans expand it beyond anything Bush did and it continues the spending well into the future. Obama’s budget is the blueprint for a huge and unsustainable expansion of government over the next decade.  What you see going on now is all Obama.

And don’t let him get away with pretending otherwise.

~McQ


And Republicans Wonder Why They’re In The Wilderness

Don’t buy or own any property in Mississippi, at least not while Republican Governor Haley Barbour is in the Governor’s mansion:

Mississippi Gov. Haley Barbour says he’s vetoing a bill that would limit the use of eminent domain because it would hurt the state’s ability to lure economic development projects.

The bill would’ve prevented the government from taking land for private projects. Barbour said Monday eminent domain was needed to lure projects such as the Nissan vehicle plant in Canton and the Toyota plant in north Mississippi.

And who is on the side of private property?

The bill was filed by Rep. Ed Blackmon, a Democrat from Canton. An attempt to override veto would have to start in the House, where Blackmon is head of the Judiciary A Committee.

Sen. Eric Powell, a Democrat from Corinth, said he voted for the bill and he doesn’t intend to change his vote.

Amazing. What in the hell happened to individual rights and small and less intrusive government among Republicans? And, at least in Mississippi, why are they ceding the fight to Democrats?

Is it any wonder the GOP is losing support at a dizzying rate? With “Republicans” like Barbour, the GOP doesn’t need any enemies.

~McQ


Quote Of The Day

Disgust is a bi-partisan concept. Michael Goodwin again:

Ronald Reagan’s famous line that “government is the problem” kept going through my head as the AIG hearing demonstrated the dangers of Washington’s role in the economy. The very people, Republicans and Democrats alike, who can’t balance America’s budget now claim the expertise to run banks, insurance companies and automakers.

If we let them, we’re dumber than they are.

Amen.

~McQ


Put The Race Card Away, Please

Mark Sanford, the governor of South Carolina, said this the other day about the possible effects of all of the spending the Obama administration was doing and planning:

“What you’re doing is buying into the notion that if we just print some more money that we don’t have, send it to different states — we’ll create jobs,” Sanford said. “If that’s the case, why isn’t Zimbabwe a rich place?… Why isn’t Zimbabwe just an incredibly prosperous place. ‘Cause they’re printing money they don’t have and sending it around to their different — I don’t know the towns in Zimbabwe but that same logic is being applied there with little effect.”

A little oversimplistic, but this is “sound bite nation” so you have to condense. In effect his point is true to the extent it goes, and the example is a good and valid one, since Zimbabwe is printing money as fast as it can add zeroes to its demonimations. By now, the hyper-inflation it is undergoing from doing so should be well known to people versed in current affairs.

Unless, of course, you want to make a racial thing out of it. Rep. James Clyburn, Democratic Majority Whip, reacts to Sanford’s lesson and example of Zimbabwe:

“For him to compare the president of this country to Mugabe. … It’s just beyond the pale,” said Clyburn, who has sparred with Sanford over the Republican’s refusal to accept all the state’s stimulus funding.

[...]

“I’m sure he would not say that, but how did he get to Zimbabwe? What took the man to Zimbabwe? Someone should ask him if that’s really the best comparison. … How can he compare this country’s situation to Zimbabwe?”

Of course the “how” is fairly simple – if what is being touted as a solution here and was touted as a solution there, then Zimbabwe should be in great economic shape right now. But Clyburn would rather make a racial thing out of it. Obviously Sanford could have used Wiemar Germany of the ’30s, but it isn’t as relevant today as the case of Zimbabwe. And, he could have also used Venezuela. But Venezuela isn’t quite the basket case Zimbabwe is. Nope, in terms of a current example of what might happen, in terms of hyper-inflation from artificially pumping up he money supply, Zimbabwe is as good as it gets.

And besides:

“Rep. Clyburn always plays the race card,” shot back Sanford spokesman Joel Sawyer, who said his boss has also compared the stimulus to failed government policies in Germany and Argentina. “This policy will result in hyper-infaltion. … [Clyburn] is ripping off the people he purports to represent.”

Round 2 to follow.

~McQ


Easy come, easy go

Today, Rep. Mike Pence and Rep. Cathy McMorris Rodgers, the Chair and Vice Chair of the House Republican Conference, led a blogger conference call. The representatives stayed on point throughout the call:

  • On the economy generally and on the Democrats’ budget proposal specifically, they repeatedly said the Democrats are spending, borrowing and taxing too much.
  • They hammered on the Democrats’ proposal as bad for families and small businesses, including family farms.  They emphasized the role of small businesses in job creation.
  • They said they believed in free markets, fiscal restraint and tax relief as the keys to growth.
  • To that effect, they said Senate and House Republicans would be cooperating closely to promote those messages over the next several weeks and then unveil an alternative budget proposal of their own, which they promise will be a bold, clear contrast with that of the Democrats.

I expected something along these lines, and I don’t object to the sentiment or disagree with their diagnosis of the Democrats’ budget. They’ve identified what’s wrong with the Democrats’ plan, they’ve developed a strategy for responding with their own alternative, and they want to get everyone on record as either supporting the Democrats’ messy bill or the ideal Republican vision.

The first question went to Quin Hillyer over at AmSpec, who asked how unified we can expect the GOP response to be if a Republican leader like Lamar Alexander broke to vote for the omnibus spending bill. Pence acknowledged that he and Sen. Alexander had a difference of opinion on that one, but hastened to add that Sen. Alexander had voted for all the limiting amendments and had voted against the stimulus, etc.

For my part, I asked the representatives why, in light of Republicans’ so-far unsuccessful attempts to bring “clean” Republican versions of bills to the floor for debate, their alternative budget would be different.

Rep. Pence answered that Republicans would be given the opportunity on this one. The Republican House leadership is working closely with the budget committee, and specifically with Rep. Paul Ryan, the ranking Republican on that committee. There are some limitations on how quickly they can move their alternative and get a CBO estimate done on it, but they’re going to use the interim to expose problems with the Democrats’ budget before unveiling their alternative.

Rep. Morris Rodgers said that it was important that it goes to the House floor for debate, and that they wanted the difference in approach to be clear to the American people, too.

As I said earlier, this is about what I expected – when your party is some 70 seats down in the House and retains only the most meager leverage in the Senate, having lost all credibility, you need to remind people that you at least remember what a conservative is supposed to want.

I just hope that’s not all they have in their playbook. It’s much easier to present a principled image when you’re out of power and have no sway over whether a given bill will pass.

Assurances that the GOP will remain so principled when they regain a measure of power won’t carry a lot of weight without some kind of binding commitments – changing the structure and practices of the party rather than the short-term tactics. After all, misbehavior that receded smoothly when the majority last changed hands can come back just as readily. Easy come, easy go.

* Cross-posted from The Next Right


Brooks On Capitalism

David Brooks had started down the road to Damascus when he was called back into the fold by Dear Leader. His Op-Ed in today’s NYT is the result.

Most of Brooks’ offering is a rather transparent attempt to shame congressional Republicans into supporting Pres. Obama’s agenda:

The Democratic response to the economic crisis has its problems, but let’s face it, the current Republican response is totally misguided. The House minority leader, John Boehner, has called for a federal spending freeze for the rest of the year. In other words, after a decade of profligacy, the Republicans have decided to demand a rigid fiscal straitjacket at the one moment in the past 70 years when it is completely inappropriate.

The G.O.P. leaders have adopted a posture that allows the Democrats to make all the proposals while all the Republicans can say is “no.” They’ve apparently decided that it’s easier to repeat the familiar talking points than actually think through a response to the extraordinary crisis at hand.

There are myriad problems with Brooks’ line of reasoning, including many in just to two foregoing paragraphs (e.g. How much input did Republicans have into the recent legislation? By “adopted a posture” is he referring to “not having control of either the House or the Senate”?), but I wanted to focus in on a couple of points in particular.

After some platitudinous admonitions, Brooks launches into his prescription for Republicans to save capitalism:

Third, Republicans could offer the public a realistic appraisal of the health of capitalism. Global capitalism is an innovative force, they could argue, but we have been reminded of its shortcomings. When exogenous forces like the rise of China and a flood of easy money hit the global marketplace, they can throw the entire system of out of whack, leading to a cascade of imbalances: higher debt, a grossly enlarged financial sector and unsustainable bubbles.

I really don’t know what point Brooks thought he was making, but he failed miserably on any score. First of all, “exogenous forces” cannot be “weaknesses” and/or “shortcomings” with capitalism since, by definition, they come from outside that system. At best, examining such forces can be used to understand better ways of protecting capitalism from them. In the context of the entire Op-Ed piece, however, it appears that Brooks is pitching the tired line that capitalism must be reigned in so that people don’t get hurt. That’s like diagnosing the problem with house, finding termites, and then thinking of ways to protect the termites from the house.

Furthermore, Brooks cites a “flood of easy money” (which, of course, is caused by government) as an example of an exogenous force, and then lists the following “shortcomings” of capitalism: “higher debt, a grossly enlarged financial sector and unsustainable bubbles.” What do any of those things have to do with capitalism? If anything, these are once again a failure of government skewing incentives.

In fact, when the government does its darnedest to make the cost of borrowing money historically low, people would be really stupid not to take advantage of that. We all know that rates fluctuate, and that the cost of money will be more expensive when they go back up. Logically therefore, it only makes sense to borrow when the Fed turns the money spigot on and then to find some sort of an asset to grow that money in. That, of course, is what leads to bubbles as everyone has barrels of money but not as many clear ideas of what makes a good investment. Instead of taking the time to really investigate what opportunities are available, and which ones fit a particular person’s portfolio, the herd mentality takes over and we all tend to keep up with the Jones and Smiths whether that means buying tulip bulbs or a run-down house we intend to flip.

The bottom line, however, is that these sorts of scenarios start with government intervention into the market place. In addition to turning on the money spigot, the federal government was also encouraging lenders to make high-risk loans, and for the Freddie Mac and Fannie Mae to buy them up, securitize them and sell them into the derivatives market. Again, that’s all fine and dandy (until it it all goes to hell), but it has nothing to do with “weaknesses” and “shortcomings” of capitalism, and everything to do with government sticking its big fat honker where it doesn’t belong.

More Brooks:

If the free market party doesn’t offer the public an honest appraisal of capitalism’s weaknesses, the public will never trust it to address them.

The “free market party”? Who does he think he’s kidding here? The Republicans haven’t acted like a free market party since … well … it’s been so long I can’t remember.

Moreover, I simply can’t fathom how Brooks thinks a “free market party” would ever be able to reconcile itself to joining hands with Obama on his completely anti-capitalist agenda.

Power will inevitably slide over to those who believe this crisis is a repudiation of global capitalism as a whole.

Earth to Brooks: that’s already happened. Look who the president is for crying out loud, or take the time to read your own newspaper. Each and every day we hear about how the excesses of capitalism caused this crisis, and how the “libertarian” policies of Bush (HA!) have landed us in this awful spot. Capitalism didn’t get a trial, Mr. Brooks, it was rounded up, convicted and summarily shot as soon as the latest grand experiment in government do-goodism failed (again).


Stray Voltage

Apparently Timothy Geithner isn’t the financial “rock star” he was touted to be if his handling of the Asian crisis 10 years ago is any indication.

While Obama may have “inherited” the financial problems, the bear market is all his.

Speaking of lay-offs, this isn’t going to make our jet jocks feel very secure.

The new slogan of the Democrats – never let a good crisis go to waste.  So this is a “good” crisis?

Take a look at this page and tell me where are the promised tax money from rich folks is going to come from.

Stray Voltage

Stray Voltage

If you don’t believe government is contemplating some pretty heavy care rationing when and if they get control, read this little beauty carefully.

Even George McGovern finds the pending card check legislation desired by unions to be “fundamentally wrong” and undemocratic.

Grey wolves “delisted” from endangered species list.

No time for Gordon Brown, but plenty of time for Brad Pitt.  Wonder if Pitt got a 25 volume DVD set too?

Is Obama preparing the way for a massive defense spending cut?

George W. Obama?

Even Paul Krugman is getting a little antsy about the apparent lack of focus of the Obama administration on the financial crisis.

It appears Hugo Chavez recognizes a kindred spirit when he sees one.

The Senate is one vote short of passing the omnibus spending bill with 9,000 earmarks.  All I wonder is which Republican will cave first?

~McQ


GOP Tech: Clueless Losers

Today, the GOP released a request for proposal for a new web site.  This is the RFP (PDF).  I have read it all the way through.  It’s quite a document.  It’s an especially interesting read for someone like me, who responds to RFPs for web development for a living. I say “interesting” because it’s a masterpiece of confusion and idiocy.

<sarcasm>

I assume it was written by someone who has heard of this new thing called “com-poo-tors”, and who doesn’t actually have one, but has been told that they’ll be very big in the future.

Let’s take a little closer look at this document, shall we?

Integrate outside products through common API’s, widgets, or iframes (examples: Kimbia fundraising, Voter Vault, Widgetbox, Ning).

As far as I know, there is no common API for those applications.  Each has it’s own API, I’m sure.  They may be accessible through a common technology, i.e., any ODBC compliant data/programming model like PHP or .NET will probably be able to access them in some way.  But there’s not going to be anything common about it.  I also love the use of the term “widgets”.  Because every tech person knows what a “widget” is.  It’s such a specific term.

But the best part is asking for the use of the IFRAME tag.  I guess that’s OK.  As long as you won’t be wanting to use the XHTML Strict doctype, or anything.  Or you’ve never heard of the OBJECT tag.

Flash interfaces can often make mundane tasks exciting, and having Flash developers who understand user behavior will make the site more user-friendly.

Well, that’s a perfectly uncontroversial statement.  If there’s one thing that everybdy in the web-based tech community agrees on, it’s how wonderful Flash is.  because it makes things, you know, move.  And it’s so easy to optimize for search engines!

An ideal client will have a CMS that is already built out and ready to plug into the system, so the only programming time will be building the outward facing presence.

“No limitations on design”?  Oh.  OK.  There’ll be no limitations on cost, then.Because, as everyone knows, every CMS system uses the exact database schema that the RNC uses, so there will need to be no data import, or customized programming to access the RNC’s content data.  All you have to do is install the CMS, and, like magic, the only work you’ll have to do is set up a really nice theme. And how convenient that Flash will require no custom ActionScript programming to integrate into the CMS.

The really helpful thing about the RFP is that there are no indications of what database backend the RNC uses, no information about the database size or schema, no indication of the server technology they’d like to use, or, actually, any technical details at all.  But, when you throw all that stuff in, the RFP gets so, you know, long, and boring.

But long and boring is one thing this document is not.  In fact, it’s only two pages long.  Once you start throwing that sort of stuff in, you end up with a hideous and stuffy nightmare of an RFP like this.

But, one thing the RNC does want:  They want to know what it’ll cost them.

All costs of the project will be delivered with proposal.

Well, it’s a good thing the RFP is so chock full of the kinds of detailed information that will allow a contractor to make accurate time/cost estimates.  But, I kid.  In actuality, the RNC has made costing this proposal childishly simple, with the addition of this:

No limitations on design; the RNC will be in on the entire process and will ensure everything is to our exact specifications.

“No limitations on design”?  Oh.  OK.  There’ll be no limitations on cost, then.  Your web site will cost $.  Or, whatever amount causes you to stop saying, “I’m done fiddling with it now.”  It’s up to you.

I’ll be billing every two weeks, thanks.

</sarcasm>

Surely this is all some sort of elaborate joke.  Perhaps on Monday the RNC will tell us that they were just having us on.  Then, once we’ve all had a good laugh, they’ll release the real RFP.

Because whatever this document is, it’s not an RFP.  At best, this is some sort of marketing-related  statement of intent.  It’s nothing more than a series of barely-related bullet points that say:

  • We want a cool web site.
  • We want neat external applications to run on it.
  • Flash is fun.
  • We want it to be easy to use, ’cause we ain’t got us much of that compooter learnin’.
  • Make it pretty.

This the new, high-tech-savvy GOP?  This is the kind of in-depth attention to leveraging technology that the refurbished, Michel Steele RNC has planned?

This is a travesty.  And it’s sad.  Especially since the opening paragraph states:

This RFP and the ambitious goals behind it result from the help of the RNC Tech Summit and the 7,000 grassroots volunteers who participated both online and in-person.

Wow.  That must have been an über-effective tech summit.


Knowing Your Base And Not Really Caring What They Think

I have to admit I’m surprised that the bill that came out of markup was smaller than either the House or Senate version of the bill. That’s a true rarity. If it wasn’t such a bad bill, I’d have to complement the three Republican Senators who helped negotiate it.  It speaks to how badly the Democrats want to be able to say “bi-partisan” when they talk about it.  It won’t fly of course, but it does demonstrate the point.

“I’m all for bipartisanship, but I don’t consider three Republican senators bipartisan,” said Missouri Rep. Emanuel Cleaver, who oversees economic recovery issues for the CBC. “Let’s not deny who we are legislatively for three senators.”

But they have to deny it if you can believe a 790 billion dollar bill denies much of anything. Are we so numbed to the numbers that some think that what these people came up with is a significant savings? Do we not understand what 1.2 trillion (including interest) means?

Good grief.

Of course “progressives” are very unhappy with the final bill:

Some House Democrats are working furiously to reinstate funds the Senate cut from an $789 billion economic stimulus package speeding to the floor this week.

In particular, progressive Democrats and members of the Congressional Black Caucus would like to see more money for social spending programs that was cut from the Senate package over the weekend in a deal with three moderate Republican senators. It’s not clear if they will get all their wishes, but the deal announced this afternoon will be finalized in the coming hours.

The CBC sent House negotiators a letter Wednesday asking them to add an additional $4.2 billion for the federal government to lend states money to acquire foreclosed homes, another $4 billion for job-training programs and $14 billion for school construction.

Question: Does anyone think any of the Democratic leadership cares one whit what the CBC wants put back in there? Furthermore, does anyone think the CBC won’t vote for this if they don’t get their way?

Nope – three Republican Senators and the ability to say “bi-partisan”, no matter how thin it sounds, is far more valuable to the Dems than the CBC. And not for the first time.

~McQ

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