Free Markets, Free People

Policy

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Sometimes I wonder …

I wonder just how intelligent the bulk of Americans are.  From a Quinnipiac poll:

American voters support 71 – 27 percent raising the minimum wage. Republican support is 52 – 45 percent. Given several options:

  • 33 percent of voters say increase the minimum wage to $10.10 per hour;
  • 18 percent say increase it from the current $7.25 per hour to something less than $10.10;
  • 18 percent say increase it to more than $10.10 per hour;
  • 27 percent say don’t increase the minimum wage.

Raising the minimum wage will lead businesses to cut jobs, voters say 50 – 45 percent, with Republicans seeing job cuts 68 – 29 percent and Democrats saying no 65 – 29 percent. Independent voters expect job cuts 51 – 45 percent.

We’re faced with the lowest job participation numbers in a long, long time, our economy is just starting to recover, a majority of Americans know that raising the minimum wage will lead “business to cut jobs” and yet, the majority also want to raise it anyway (to include 52% of “Republicans”).

It makes you just want to throw up your ands and say “screw it”.

~McQ


Is prosperity about to become a thing of the past?

You tell me.  Robert Samuelson:

The presumption of strong economic growth supported the spirit and organizational structures of postwar America.

Everyday life was transformed. Credit cards, home equity loans, 30-year mortgages, student loans and long-term auto loans (more than 2 years) became common. In 1955, household debt was 49 percent of Americans’ disposable income; by 2007, it was 137 percent. Government moved from the military-industrial complex to the welfare state. In 1955, defense spending was 62 percent of federal outlays, and spending on “human resources” (the welfare state) was 22 percent. By 2012, the figures were reversed; welfare was 66 percent, defense 19 percent. Medicare, Medicaid, food stamps, Pell grants and Social Security’s disability program are all postwar creations.

Slow economic growth now imperils this postwar order. Credit standards have tightened, and more Americans are leery of borrowing. Government spending — boosted by an aging population eligible for Social Security and Medicare — has outrun our willingness to be taxed. The mismatch is the basic cause of “structural” budget deficits and, by extension, today’s strife over the debt ceiling and the government “shutdown.”

You know, we keep saying this is “unsustainable”, yet we keep refusing to face the problem head on and do anything about it.

This little bit of political theater isn’t going to change that and we all know it.  The last paragraph identifies the problem.  What apparently isn’t understood, though, is government is not the solution.  And big government simply makes the problem worse because it sucks down more and more of the GDP.

The solution is both painful and difficult.  And, of course, no one wants to face that fact, certainly not any politician.

So the can gets kicked down the road – as you know it will before any of this ever begins.  None of the politicians want to be “the ones” in power when all of this collapses.

For whatever reason, after WWII, we decided to change the purpose of government from “night watchman” to “Santa Claus”.  Maybe it was the horror of war.  Maybe it was the huge surge in post-war prosperity, but like the story of the goose that laid the golden eggs, we’re about to kill the goose.

So what does that mean?

As economist Stephen D. King writes in his book “When the Money Runs Out: The End of Western Affluence”:

“Our societies are not geared for a world of very low growth. Our attachment to the Enlightenment idea of ongoing progress — a reflection of persistent postwar economic success — has left us with little knowledge or understanding of worlds in which rising prosperity is no longer guaranteed.”

And that fact alone makes any recovery from this mess even less likely.  We’ve been able to stumble along and put off the inevitable because we have managed to have “persistent postwar economic success”.  But if you look at economic projections for the future, they don’t show the historical growth that America has enjoyed since the ’50s.  They show European type “growth”.  They show slow growth as the “new normal”.   Why?

Lindsey attributes U.S. economic growth to four factors: (a) greater labor-force participation, mainly by women; (b) better-educated workers, as reflected in increased high-school and college graduation rates; (c) more invested capital per worker (that’s machines and computers); and (d) technological and organizational innovation. The trouble, he writes, is that “all growth components have fallen off simultaneously.”

As it seems now, Greece is our future.  Nothing, politically, is going to be done about it, despite the current political theater.  Neither the politicians nor the citizens want to face reality.  And as it is shaping up, it isn’t a matter of “if”, but “when” it all folds in on itself like a wet cardboard box.

~McQ


Governing By Expert

On last night’s podcast, Dale and I discussed the rise of a soft tyranny and expansion of the regulatory state in this country. Pres. Obama has, on more than one occasion, unilaterally declared the power to pick and choose what laws to enforce, or to simply change the way they are enforced, without any consequences (i.e. checks and/or balances). He’s not the first POTUS to act that way (albeit the most brazen about it), and probably won’t be the last.

The primary reason he, or any other POTUS, is even able to act this way is because of the massive regulatory apparatus at the disposal of the Executive branch. An apparatus created by Congress; one it seems strangely reluctant to rein in. As Kevin Williamson notes, “Barack Obama did not invent managerial liberalism,” and while his agenda is painfully horrendous, it’s “a good deal less ambitious than was Woodrow Wilson’s or Richard Nixon’s.” However, Obama has used the leeway provided by Congresses past and present to further expand the regulatory state. Williamson characterizes this as Obama’s “utterly predictable approach to domestic politics: appoint a panel of credentialed experts.”

His faith in the powers of pedigreed professionals is apparently absolute. Consider his hallmark achievement, the Affordable Care Act, the centerpiece of which is the appointment of a committee, the Independent Payment Advisory Board (IPAB), the mission of which is to achieve targeted savings in Medicare without reducing the scope or quality of care. How that is to be achieved was contemplated in detail neither by the lawmakers who wrote the health-care bill nor by the president himself. But they did pay a great deal of attention to the processes touching IPAB: For example, if that committee of experts fails to achieve the demanded savings, then the ball is passed to . . . a new committee of experts, this one under the guidance of the secretary of health and human services. IPAB’s powers are nearly plenipotentiary: Its proposals, like a presidential veto, require a supermajority of Congress to be overridden.

IPAB is the most dramatic example of President Obama’s approach to government by expert decree, but much of the rest of his domestic program, from the Dodd-Frank financial-reform law to his economic agenda, is substantially similar. In total, it amounts to that fundamental transformation of American society that President Obama promised as a candidate: but instead of the new birth of hope and change, it is the transformation of a constitutional republic operating under laws passed by democratically accountable legislators into a servile nation under the management of an unaccountable administrative state. The real import of Barack Obama’s political career will be felt long after he leaves office, in the form of a permanently expanded state that is more assertive of its own interests and more ruthless in punishing its enemies. At times, he has advanced this project abetted by congressional Democrats, as with the health-care law’s investiture of extraordinary powers in the executive bureaucracy, but he also has advanced it without legislative assistance — and, more troubling still, in plain violation of the law. President Obama and his admirers choose to call this “pragmatism,” but what it is is a mild expression of totalitarianism, under which the interests of the country are conflated with those of the president’s administration and his party.

(emphasis added)

I likened the expansion and independence of the regulatory state to 2001: A Space Odyssey or The Terminator in that these things that were created to ostensibly serve in the aid of their users developed a life, mind and interests of their own, and eventually turned on the users. A perfect example would be if the IRS scandal of targeting conservatives turns out to be completely divorced of any political direction, and instead was completely self-initiated from within the department. As James Taranto often points out, that is the far scarier scenario than the one where the White House directed the agency to target its political enemies. Corrupt politicians are bad, but they are expected and can be dealt with in a summary manner. An unelected, unaccountable and extremely powerful organization exercising its own political agenda is orders of magnitude worse.

Williamson continues:

Democracy never lasts long,” [John] Adams famously said. “It soon wastes, exhausts and murders itself. There was never a democracy that did not commit suicide.” For liberal regimes, a very common starting point on the road to serfdom is the over-delegation of legislative powers to the executive. France very nearly ended up in a permanent dictatorship as a result of that error, and was spared that fate mostly by good luck and Charles de Gaulle’s patriotism. Long before she declared her infamous state of emergency, Indira Gandhi had been centralizing power in the prime minister’s office, and India was spared a permanent dictatorship only by her political miscalculation and her dynasty-minded son’s having gotten himself killed in a plane wreck. Salazar in Portugal, Austria under Dollfuss, similar stories. But the United States is not going to fall for a strongman government. Instead of delegating power to a would-be president-for-life, we delegate it to a bureaucracy-without-death. You do not need to install a dictator when you’ve already had a politically supercharged permanent bureaucracy in place for 40 years or more. As is made clear by everything from campaign donations to the IRS jihad, the bureaucracy is the Left, and the Left is the bureaucracy. Elections will be held, politicians will come and go, but if you expand the power of the bureaucracy, you expand the power of the Left, of the managers and minions who share Barack Obama’s view of the world. Barack Obama isn’t the leader of the free world; he’s the front man for the permanent bureaucracy, the smiley-face mask hiding the pitiless yawning maw of total politics.

(emphasis added)

I would add that, if the politics were reversed (i.e. “the bureaucracy is Right, and the Right is bureaucracy”) we would still have the same issue: an unaccountable power structure that invades every aspect of our lives. Coupled with a President who exercises that power based on political whims, and we have a serious issue:

The job of the president is to execute the law — that is what the executive branch is there to do. If Barack Obama had wanted to keep pursuing his career as a lawmaker, then the people of Illinois probably would have been content to preserve him in the Senate for half a century or so. As president, he has no more power to decide not to enforce the provisions of a duly enacted federal law than does John Boehner, Anthony Weiner, or Whoopi Goldberg. And unlike them, he has a constitutional duty to enforce the law.

So, one might ask (as Dale did last night), why isn’t the President being impeached for dereliction of duty? Partisan politics is one answer (see, e.g., the failure of the Clinton impeachment). A lack of will is another. Perhaps the simplest answer, however, is that Congress is quite complicit in this expansion and abuse of the regulatory state:

Congress’s supine ceding of its powers, and the Obama administration’s usurpation of both legal and extralegal powers, is worrisome. But what is particularly disturbing is the quiet, polite, workaday manner with which the administration goes about its business — and with which the American public accepts it. As Christopher Hitchens once put it, “The essence of tyranny is not iron law; it is capricious law.”

[snip]

Barack Obama’s administration is unmoored from the institutions that have long kept the imperial tendencies of the American presidency in check. That is partly the fault of Congress, which has punted too many of its legislative responsibilities to the president’s army of faceless regulators, but it is in no small part the result of an intentional strategy on the part of the administration. He has spent the past five years methodically testing the limits of what he can get away with, like one of those crafty velociraptors testing the electric fence in Jurassic Park. Barack Obama is a Harvard Law graduate, and he knows that he cannot make recess appointments when Congress is not in recess. He knows that his HHS is promulgating regulations that conflict with federal statutes. He knows that he is not constitutionally empowered to pick and choose which laws will be enforced. This is a might-makes-right presidency, and if Barack Obama has been from time to time muddled and contradictory, he has been clear on the point that he has no intention of being limited by something so trivial as the law.

I agree with Williamson that Obama has pushed the limits, but I think he lets Congress off the hook too easily. Every POTUS presses the limits. Indeed, Williamson provides the example of Nixon’s abuses, and even compares Obama favorably: “… it is impossible to imagine President Obama making the announcement that President Richard Nixon did on August 15, 1971: ‘I am today ordering a freeze on all prices and wages throughout the United States.’” Williamson notes that Nixon was able to make that announcement because of power invested in him by Congress. Just as Obama has been entrusted with incredible power via such instruments as the IPAB which requires a super-majority of Congress to override its decisions. While Obama is bad, clearly the issue here is that Congress isn’t doing its job either.

Recall that in Federalist #51, James Madison explained that the way the Constitution controls the new federal government, such that “the private interest of every individual may be a sentinel over the public rights”, was to divide the different departments in a way that each had interests sufficiently distinct from one another so as to provide an incentive for each to jealously guard those interests and maintain their power. This system of checks and balances was meant to prevent consolidation of power in any one part of the government.

The problem we seem to have run into since then is when the two most powerful departments combine their interests and secret away their combined powers in an unaccountable regulatory apparatus, safe from the will of the electorate. That the office of POTUS would be willing to do this is to be expected, and indeed is a large part of why there was much resistance to its creation. However, that Congress has done so much to aid and abet the effort is contemptible. Unless and until Congress rights the balance, and vigorously pursues its checking role, the problem will only worsen.


Obama’s doublespeak droning about drones

Reason magazine notes the following concerning Obama’s “end of terrorism” speech:

What was remarkable about Obama’s speech was its complete disconnect with his own actions in office. In a textbook example of Orwellian doublespeak, he declared that America would be haunted by the civilian casualties produced by drone attacks — without noting that these attacks were the defining feature of his war on terror.

As atonement, he pledged to transfer oversight of the drone program from the CIA to the Pentagon. But the problem with the program is not who runs it but what it does.

For those of us that have watched this guy from the beginning, it’s hardly a “complete disconnect”, it’s business as usual.  We’ve noted from the start that one should never believe what the man says, they should instead monitor his actions.  9 times out of 10, what he does or has done won’t be anywhere near what he said or said he’d do.  He is the master of doublespeak.

Oh, and remember how he told us that the world would love us again now that he was in charge?  Uh, yeah, more doublespeak:

[The Obama Administration] has escalated drone strikes against alleged militants along the Pakistan-Afghanistan border. According to the liberal AlterNet, the Bush administration conducted 52 drone strikes in this region killing 438 people, including 182 civilians. This administration ordered 300 strikes in just its first term, killing 2,152 people, including 260 civilians. The constant buzzing in the sky traumatizes the local population — and violates Pakistani sovereignty — all of which has caused America’s popularity in Pakistan to plummet from 36 percent under Bush to 24 percent under Nobel-Peace-Prize-winner Obama.

I wonder if the Nobel committee ever wished they had recall privileges.  More importantly, I wonder if they learned anything from this debacle which might make them tend to wait until the subject of their next peace prize has actually done something to earn it.

~McQ


Liberals Don’t Understand How Agricultural Subsidies Work

To be fair, they don’t understand how most things work, especially when there’s math involved, but this particular quirk is quite annoying.

I remember the first time I came across this general ignorance (see the comments), in a West Wing episode:

Actual dialog from a recent West Wing rerun:

Josh: What do I say to people who ask why we subsidize farmers when we don’t subsidize plumbers?
Farmer’s daughter 1: Tell ’em they can pay seven dollars for a potato.

Yes, I know it’s a TV show, but do people actually think like this? I always assumed that the reason we couldn’t get rid of farm subsidies was rent seeking by the farmers, but if people actually believe this, that could be part of the problem.

Yes, people actually do believe this. Indeed, here is David Sirota spouting the same ignorance:

GOP meat eaters aren’t free market – they want everyone to subsidize their eating via taxes that fund meat subsidies.

Among best ways to reduce meat consumption is to end ag subsidies so that the cost of meat is a true free market price – think: $9 burgers

David also makes the correct point that some GOP congressmen vote to keep these subsidies in place (particularly those in states with farms that benefit the most from them), but that doesn’t alleviate the complete misunderstanding of what these subsidies do.

In short: agricultural subsidies don’t reduce consumer prices, but instead raise them.

In fact, the entire point of these subsidies is to set minimum price levels (often called “price supports”) or trade barriers that create an artificial monopoly. The entire milk industry, as an example, is propped up with such subsidies. Why else do you think it costs about as much for a gallon of milk as does for a gallon of gas?

Although there had been several different forms of subsidies in the U.S. prior to the 1930′s, most were simple tariffs. When the Great Depression began, the Roosevelt Administration sought to prop up the nation’s farmers by raising their incomes. How did they propose to do that? Mainly by setting minimum prices and production quotas (remember Wickard v. Filburn?):

When Franklin D. Roosevelt was inaugurated president in 1933, he called Congress into special session to introduce a record number of legislative proposals under what he dubbed the New Deal. One of the first to be introduced and enacted was the Agricultural Adjustment Act. The intent of the AAA was to restore the purchasing power of American farmers to pre-World War I levels. The money to pay the farmers for cutting back production by about 30 percent was raised by a tax on companies that bought farm products and processed them into food and clothing.

The AAA evened the balance of supply and demand for farm commodities so that prices would support a decent purchasing power for farmers. This concept was known as “parity.”

AAA controlled the supply of seven “basic crops” — corn, wheat, cotton, rice, peanuts, tobacco, and milk — by offering payments to farmers in return for farmers not planting those crops.

The AAA also became involved in assisting farmers ruined by the advent of the Dust Bowl in 1934.

In 1936 the Supreme Court, ruling in United States v. Butler, declared the AAA unconstitutional. Writing for the majority, Justice Owen Roberts stated that by regulating agriculture, the federal government was invading areas of jurisdiction reserved by the constitution to the states, and thus violated the Tenth Amendment. Judge Harlan Stone responded for the minority that, “Courts are not the only agency of government that must be assumed to have capacity to govern.”

Further legislation by Congress restored some of the act`s provisions, encouraging conservation, maintaining balanced prices, and establishing food reserves for periods of shortages.

Congress also adopted the Soil Conservation and Domestic Allotment Act, which encouraged conservation by paying benefits for planting soil-building crops instead of staple crops. The rewritten statutes were declared constitutional by the Supreme Court in Mulford v. Smith (1939) and Wickard v. Filburn (1942).

During World War II, the AAA turned its attention to increasing food production to meet war needs. The AAA did not end the Great Depression and drought, but the legislation remained the basis for all farm programs in the following 70 years.

The entire point of these subsidies is to increase the incomes of farmers. It has never had anything to do with making the price of a potato or a hamburger cheaper for consumers. By design, these programs intend to raise the price for agricultural products, as well as to transfer dollars from taxpayers to farmers.

How liberals like David Sirota and Aaron Sorkin came to think the exact opposite is puzzling. As Ronald Reagan said: “It isn’t so much that liberals are ignorant. It’s just that they know so many things that aren’t so.”


Is policy killing red-state women?

I see some on the Left passing around this map showing that female mortality worsened in many counties between the early/mid-’90s and the early/mid-2000s.  (Meanwhile, male mortality only worsened in 3.4% of counties.)

They noticed red states doing worse than blue states, and thought that this must, of course, be due to the Republican war on women™.

The mortality rate of females [worsening] in 43 percent of U.S. counties from 2002-2006 is eye-opening. This map from health researcher Bill Gardner helps you see where the worst results are typically coming from — red states and the redder parts of blue states.

It apparently did not occur to these partisans to control for a fairly simple, innocent phenomenon: old people just die more frequently than younger people.

  • Rural areas are aging faster as they have fewer kids who stick around – and it’s mostly women left behind, since women have a longer life expectancy than men in the US.  So the mortality rate of a county could go up even if people are as healthy for their age as ever.
  • On the other hand, when you have an influx of young people (like in high-immigration counties), the mortality rate drops.

As evidence for this, look at the overlaps between the above map and two others:


More old people combined with fewer people in the prime of their health tends to mean a higher death rate, and vice versa.  It’s not a perfect correlation, but at very least it’s something that should be taken into account before blaming policy for deaths.

It certainly seems like less of a stretch than trying to blame the trend in female mortality on suicides connected to expanded gun ownership:

[A]nother study suggests that red states’ high levels of gun ownership make them especially dangerous:

With few exceptions, states with the highest rates of gun ownership — for example, Alaska, Montana, Wyoming, Idaho, Alabama, and West Virginia — also tended to have the highest suicide rates.

How big of a stretch is this as a contributor to female mortality?  Two little hints:

And then there’s this bold prediction:

With red states rushing to turn down the Medicaid expansion, these results will likely only get worse.

That’s not outlandish as guesses go, since women consume two thirds of medical care in this country, but there’s not an obvious nationwide relationship between Medicaid dependence and changes in women’s mortality (though controlling for ethnicity might be a start):

Blaming the party elected by older people for higher mortality in the areas they govern is like blaming Democrats for young urbanites being more prone to violent crime than old rural farmers.  If you’re not controlling for other causes, you’re just trolling for partisan causes.


Obama’s Middle East policy is a disaster

Do you remember the promises?  When Obama took over, the Middle East would come to love the US again.  As Obama, famously declared in his 2009 Cairo speech, his election meant a “new beginning” with the Muslim world.

The truth, however, is much uglier:

President Obama’s first journey to Israel as president comes amid earth-shattering change in Middle East, much of it for the worse. The Arab Spring, which once raised hopes of freedom and dignity, has diverged onto the dark path of Islamist authoritarian rule. In Syria, tens of thousands of people have died in a bitter civil war that might have recently seen its first use of chemical weapons. And Iran continues its march toward nuclear weapons capability, heedless of international condemnation. Obama’s effort to seek peace between Palestinians and Israelis is in tatters.

And Libya?  One word: “Benghazi”.

How about the much anticipated and promised love fest that would occur after that mean old George W Bush was retired and The One waved his mighty hand and blessed his own Middle East policy?  Yeah, it hasn’t quite worked out that way:

According to the latest survey by the Pew Research Center’s Global Attitudes Project, confidence in Obama in Muslim countries dropped from 33% to 24% in his first term. Approval of Obama’s policies declined even further, from 34% to 15%. And support for the United States in Egypt, Jordan, Lebanon and Pakistan is lower today than it was in 2008 in the closing year of George W. Bush’s administration.

Israel, our closest and most important ally in the area isn’t much enamored with Obama:

Of all the strained relationships in the Middle East, the partnership with Israel is the most important and potentially the most easily repaired. Obama is not popular in the country. A poll released last week showed he had a scant 10% approval rating in Israel, with an additional 32% saying they respect but don’t like him.

And, if the tactic of stiffing Israel had the intent of winning popularity among Palestinians, that too hasn’t worked:

If Israelis don’t like Obama, Palestinians are even less favorable.Washington’s perceived failure to take a harder line with Israel over the final status of Jerusalem, and U.S. opposition to President Mahmoud Abbas’ successful campaign for higher Palestinian status in the United Nations, have engendered a deep sense of frustration. Passions spilled over in Bethlehem this week, when young Palestinians defaced a billboard with Obama’s image and burned pictures of him in the streets. Obama’s symbolic nods to Israel’s history are likely to raise Palestinian ire even further.

In fact, none of the administration’s policy initiatives have had any positive impact, or, for the most part, any impact at all (despite a fawning media telling us how wonderful a SecState Hillary Clinton was, this is her legacy too).

So, what will Obama do today in Israel?  What he usually does.  Make a speech:

The hope that Obama will say the right things in Thursday’s speech at Jerusalem’s convention center is negated by doubts he will follow through. The president has to assure Israelis and Palestinians that he is still engaged if the peace process has any chance of moving forward. In part, this means convincing them that he still matters.

Key point emphasized.  If you’ve watched Obama even casually over the past years, you can’t help but have noticed that he’s very strong on “talking the talk”, but hardly ever “walks the walk”.  He doesn’t know how.

And there’s absolutely no reason this particular issue will see him even attempt it now.  Oh, he’ll say the “right things”. That’s what he does. His problem is he never then does the “right things”.  Rhetoric is his action.  It’s for the history books, not as a guide to leadership.  He’s not a leader.

But you know that.  And the results of that lack of leadership are evident for all to see in the Middle East.

~McQ


Obama claims credit for something he hasn’t done

I’m sure that doesn’t surprise anyone particularly.  A) it’s Obama and B) he’s a politician who has yet to quit campaigning (mostly because he hasn’t a clue how to govern).

What am I talking about?  His attempt to claim responsibility for the fact that fossil fuel production is up under his watch and he’s somehow responsible for that.

Yes, it is, but that has absolutely nothing to do with him or his policies.   The Congressional Research Service has apparently made that official now:

The Congressional Research Service has released a report finding that, as was already generally known, U.S. oil and gas production has increased substantially over the past four years, but on private lands only, while it’s actually declined on federal land.

Or said another way, where Obama had control and the opportunity to do what he is claiming, he declined that opportunity and in fact impeded further exploration and production with his policies.  Where he had no real control, production boomed.  Federal lands – nada.  Private lands – bunches and bunches.

What has he sacrificed with his anti-fossil fuel polices?  Revenue and jobs.

Again, you have to wonder anymore what it takes to be fired.

~McQ


Keystone XL pipeline: How long will Obama delay this time

In the wake of sequestration, an opportunity to do the right thing for this country arises.  Unfortunately, it arises within an administration ideologically, and therefore adamantly, opposed to the idea of more fossil fuel:

Today the State Department released yet another positive environmental review for the northern portion of the Keystone XL pipeline project. The State Department approved the original pipeline route through Nebraska, which was supposedly less environmentally friendly, without any problems.

It is no surprise, then, that the State Department also seems to look favorably on this second iteration of the project in this fourth report—a report that should have been unnecessary. For the record, the pipeline also received a stamp of approval from Nebraskans.

Yes, that’s right, the Obama State Department has given the Keystone XL pipeline favorable reviews before.  It has been the executive, in this case, arbitrarily overruling the reports, inserting himself in a process he really has no business in and delaying the project.

IER senior VP Daniel Kish sums it up pretty well:

"This is, as President Obama says, ‘a teachable moment.’  It teaches us why our government’s policies continue to stifle job creation, investment and new energy sources and instead spends valuable time and increasingly limited resources studying things to death.

"While we welcome this report, we also note this is the 4th such environmental report on the Keystone XL pipeline proposal and since it is only a “draft” there will be at least 5 federal environmental studies before a decision is made by our government on the pipeline. The Canadian government made a decision in 6 months; our government has taken 54 months so far.  This is an abject lesson in why – when it comes to energy – no one wants to deal with our government.  This is evident also by continuing falling production on federal lands at the same time U.S. oil and gas production on non-federal lands makes historic gains.  It is time for our Leaders to make a decision….Canada’s did a long time ago.  Too many are hurting and too much is at stake for any more time or money to be wasted on trivial matters and long addressed and re-addressed chimeras advanced by opponents of any and all affordable sources energy."
54 months, numerous positive reports and counting.  Canada, meanwhile, has moved on, planning, while we dither, to sell it’s product to China.  Pipelines don’t have to run through other countries which make life difficult, they can run only in Canada, to their coast for shipment to the Far East.
 
What is Obama delaying?
The project will accommodate up to 830,000 barrels of oil per day, create some 179,000 jobs on American soil, and continue good trade relations with a close ally. The benefits won’t stop with the oil sector, though—the Keystone project will have a positive ripple effect even in areas without the pipeline that will provide goods and services to support the pipeline.
And where do we stand in the wake of this latest favorable report?
Before any real decision is made, there will be a 45-day comment period and some time for the State Department to consider the comments. Then the notably anti-carbon Secretary of State, John Kerry, will give his recommendation and the final decision will lie with the President.
Any feeling of confidence that this administration, no matter how late in the game, will make the right decision isn’t exactly surging in me right now.
 
More than anything, it’s just sad that the lives and livelihoods of so many Americans rest in the incompetent hands of Barack Obama and John Kerry.
 
~McQ


The politics – and failure – of going “green”

“Going green” and “climate change” certainly are interlinked parts of a political agenda that have nothing to do with public opinion or will.  In fact:

Seventeen years of continuous surveys covering countries around the world show that people not only do not care about climate change today – understandably prioritising economic misery – they also did not care about climate change even back when times were good. The new information comes in a study released by the National Opinion Research Center at the University of Chicago – a large, long-standing and respected non-profit. The NORC spokespersons said that decades of climate alarmism have had basically no effect on people’s attitude around the world.

Part of that has to do with the fact that they’ve heard it all before.  Dire predictions about population growth that have come to naught.  Warnings about using up the earth’s resources which have proven to be false. Ozone holes. Melting icecaps. Yatta, yatta.

Climate change is just the latest among the apocalyptic prophesies and as the real science – not Al Gore “science” – comes out, fewer and fewer people are staying on the bandwagon.

Of course the promise was a “green economy” in which everyone would benefit.  How’s that worked out?  Well we know how it has worked out in Spain.  Germany is now finding out how mistaken they were to go in that direction.  In fact:

Energy, manufacturing and agriculture are playing a major role in the corridor states’ revival. The resurgence of fossil fuel–based energy, notably shale oil and natural gas, is especially important. Cheap U.S. natural gas has some envisioning the Mississippi River between New Orleans and Baton Rouge as an “American Ruhr.” Much of this growth, notes Eric Smith, associate director of the Tulane Energy Institute, will be financed by German and other European firms that are reeling from electricity costs now three times higher than in places like Louisiana.

Interesting.  It is another reason why they’re also putting manufacturing plants in the US, mostly in Red States.  Skilled labor, right to work and cheap energy.  Obviously neither the “right to work” nor cheap energy are part of any Obama administration design.

And how is it going for green jobs more locally?  Well, the usual state can be consulted for an update on what such a move has wrought and demonstrate for all to see why “going green” is a foolish road to travel – at least in the near future.

It was supposed to be the next big thing. California built decades of broad-based prosperity from the Gold Rush, then Hollywood, then aerospace, and later Silicon Valley. At the turn of the century, “green jobs” were supposed to be the wave of the future. How is that going for them? According to the best numbers from the Bureau of Labor Statistics, fewer than 2,500 green jobs have been created in California since 2010.

Wow … bask in the success!  Government again demonstrates how poorly it does picking winners and losers.  Not that such failures ever hinder the central planners from using your dollars to try again.  What’s Einstein’s definition of insanity?

Meanwhile, the “success” of green energy has brought California to a point where it will have to fish or cut bait very soon:

California is weighing how to avoid a looming electricity crisis that could be brought on by its growing reliance on wind and solar power. At Tuesday’s meeting, experts cautioned that the state could begin seeing problems with reliability as soon as 2015.

Of course, had we heeded the experience of others, we likely wouldn’t see California going through this nonsense:

The former chancellor Lord Lawson has urged the Government to keep Britain’s coal-fired power stations working for as long as was needed to avoid any short-term power shortages. In a House of Lords debate on energy policy and electricity generation Lord Lawson also called on ministers to give “every encouragement  it can” to the quickest possible development of shale gas supplies. Lord Lawson urged energy and climate change minister Baroness Verma to assure the House that “if the need arises our coal-fired power stations will be kept open as long as is necessary, regardless of the European combustion plants directive”.

But our dauntless leaders never learn from others.  Just as with healthcare, they seem bound and determined to recreate the failure of others.

We have abundant fossile fuel resources.  They would generate both jobs and revenue for government.  Wind and solar, while great in theory, have in practice been shown to be woefully inadequate to our needs.  We even have communities wanting wind turbines taken down due to health concerns.

Yet our government and this administration continue to pursue an “energy policy” which is detrimental to the welfare of this nation despite a state that has done everything they want to do nationally and is a dismal failure because of it.  They are bound and determined to make all 50 states Californias.

~McQ

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