Questions and Observations

Free Markets, Free People

Stimulus II? Ponder This ….

You’ve just witness the unimaginable – Congress passes a 789 billion dollar pork-laden spending bill disguised as a “stimulus” bill and they may be contemplating “Unimaginable II”:

Despite the enormous size of the $787 billion stimulus plan, some economists worry that it won’t make a big enough dent in unemployment and that lawmakers will have to work on another stimulus in short order — something members of Congress are loathe to discuss.

“That’s possible,” said Alice Rivlin, a former Clinton administration budget director. “I think the economy is getting worse quite rapidly and this may not prove to be enough.”

And why is that, Ms. Rivlin? Why might it not be “enough”?

The stimulus got “less stimulative,” Rivlin said, as it passed through the Senate and some of the things that offered “the biggest bang for the buck” were scaled back, such as more money for food stamps.

*Gasp*

You mean it was exactly what those mean old Republicans said it was – more relief than stimulus. More social spending than jobs? That, in fact, any stimulative part of the bill was watered down or eliminated in favor of special interest spending on programs which are either years in the future or will provide no immediate jobs with which to help get the economy moving?

You mean, despite all the rhetoric and nonsense to the contrary by Obama and the Dems, we are on the road to repeating the mistakes Japan made that brought them their “lost decade”?

No kidding?

And I doubt many would call Ms. Rivlin a right-wing reactionary economist spouting Republican talking points, would they?

So now that the Dems have fulfilled their 40 year social program spending spree, it appears they may now try to actually stimulate the economy with a few more hundred billions of your great, great, great grandchildren’s money.

More future theft.

“Son of Stimulus”, coming to a wallet near you soon?

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Guess Who Is Back, Hat In Hand?

I suppose this too will somehow come as a surprise the left:

General Motors Corp., nearing a federally imposed deadline to present a restructuring plan, will offer the government two costly alternatives: commit billions more in bailout money to fund the company’s operations, or provide financial backing as part of a bankruptcy filing, said people familiar with GM’s thinking.

The competing choices, which highlight GM’s rapidly deteriorating operations, present a dilemma for Congress and the Obama administration. If they refuse to provide additional aid to GM on top of the $13.4 billion already committed they risk seeing an industrial icon fall into bankruptcy.

Tired of throwing money at a company which has a failing business model? Not interested in throwing good money after bad?

Well, then let them seek protection under the bankruptcy laws, reorganize (which means getting out from the labor contract the UAW refuses to renegotiate) and let them stand a company back up that’s able to compete. Heck, this is as good a time as any – they’re not selling any cars anyway.

Oh, and as an afterthought, if bank execs have to have salary caps, how about auto execs and labor leaders? No I’m not for any of that, but it does provide a vivid example of how arbitrary the rules Congress imposes are, doesn’t it?

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Fat-Tax Gets Trimmed Down To Size

I‘m sure this will come as a complete surprise to some on the left but the people didn’t go for Gov. Paterson’s idea at all:

New York Gov. David Paterson admitted Thursday one of his most talked-about tax proposals, an obesity tax on sugary drinks, is fizzling.

But he said it popped the right question.

In meeting with college students over his budget, Paterson told the young New Yorkers not worry about his soda tax because the Legislature won’t go for it. But he said it has served its purpose of raising awareness of childhood obesity.

It served  another more important purpose – it showed the extent to which politicians are willing go to control your life and that they are only limited by their imagination. Without a public outcry, this might have found its way through the legislative process. Eternal vigilance is the price of freedom.

And another point to ponder – if government was the sole purveyor of health care, how outlandish of an idea do you really think this would be? A legislature looking for ways to raise revenue while cutting costs in health care?  A fat-tax would be a no-brainer and its justification would be found in government’s assumed responsibility for your health.

[HT: Matthew H.]

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Buyer’s Remorse? Have Obamacons Been Obamaconned?

I‘ve spoken before about the political brilliance that running on nebulous catch phrases can accrue for the politician. Lay them out there, let the voting public decide what they mean to each of them and then ride the wave to elected office.

Obama did precisely that. And many who are marginally on the right, were fooled by that. Those who voted for him projected their “hope” for “change” on the blank screen he provided. But, as you’ll see in this example, the reality of who Barack Obama really is may be clearing up, and it appears it is a huge disappointment to many of his more conservative/libertarian supporters.

Silicon Valley, where I live, is home to both political liberals and conservatives–more liberals of late, but not by a huge margin. The lopsidedness occurs on the freedom-statist divide. An overwhelming majority of Valley residents would place themselves on the freedom side and against the state. This should not surprise anyone. Silicon Valley is a land of immigrants, both foreign and from other American states. What draws people to Silicon Valley is the freedom to go out and commit industrial revolution and make the future.

Thus it was always odd that Silicon Valley voted for the most statist-inclined presidential candidate since FDR. Silicon Valley fell in love with Barack Obama. His youth and multicultural cool, along with the Web superiority of his presidential campaign, had Silicon Valley going googly for Obama.

In the eyes of Silicon Valley, Obama was like the Apple Macintosh. John McCain was like Windows.

Now comes the reckoning. Obama may be the coolest guy ever to hold the office of U.S. president. He may be the personification of an Apple Mac, iPod and iPhone. But this week Obama proved he is a big-state liberal, through and through.

My Silicon Valley friends who supported Obama are weirdly silent about this. I suspect they are in denial, still hoping for the closet libertarian Obama to emerge. Throughout the 2008 campaign, Silicon Valley Obama voters would tell me that Obama was really an economic centrist. Forget his liberal Senate record and Saul Alinsky-conditioned career as a community organizer. Forget the Chicago-style thug politics. That was in the past. Obama did what he had to do to rise. Once in the Oval Office, Obama will really govern more like John F. Kennedy, Bill Clinton or Tony Blair.

Say it enough times, and you can almost believe it. Well, sorry about that, you Obamacons. You just got thrown under the bus.

The $790 billion stimulus headed for Obama’s desk is statist. It is also backward looking. Sure, there are some forward-looking initiatives, such as a few billion for broadband. But the bill is overwhelmed by “shovel-ready” projects aimed at school building improvement, road repair and so forth, and by bailouts to profligate state governments.

Very disturbingly, the bill has the stench of protectionism in it. This is antithetical to the interests of trade-happy Silicon Valley.

What is becoming clear is the Obama we can expect to govern is the big government statist liberal and not a “closet libertarian” as they hoped. Note the word. They fooled themselves into thinking that was actually a possibility. Yet as I pointed out below, this huge and unfocused spending plan being touted as a “stimulus” is nothing more than a massive expansion of government. It is also just the prelude for further intrusion, essentially a down-payment which paves the way for massive intrusion in health care and the energy sector.

For those who cast a jaundiced eye on the candidate and his blank slate campaign, none of this comes as a surprise. A creature of the most liberal political machines in America, a student of Saul Alinski’s method and someone who consistently saw government as the answer and not the problem during his political rise, the Barack Obama the folks are suddenly discovering in Silicon Valley and other parts of America is precisely the guy we expected.

His “youth and multicultural cool” may have been part of sales job, but now it comes down to performance. Thus far his performance has been directed at expanding government. Two of the first three bills passed in his administration have massively increased government. And as I’ve noted, he promises even more.

In less than a month, Obama has signaled that there isn’t a libertarian leaning bone in his body. The question remains as to how people, like those in Silicon Valley, managed to fool themselves enough to vote for a candidate who so obviously didn’t fit their “hope”. And are they, as this particular piece seems to indicate, feeling a little buyer’s remorse?

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Years, Not Months, To Recovery

Well yeah - now:

President Barack Obama on Friday warned that economic recovery in the United States “will be measured in years, not months” as he scored a major victory in his young presidency with the approval in Congress of a $787 billion (£542) bill to revive the economy.

How unfocused is this mess? Well here’s a nice example:

Sec.1421 of the American Recovery and Reinvestment Act gives employers a tax incentive for hiring people (I hesitate to call them “workers,” given it’s not likely they’ve ever held a job for more than a couple days) who fit the following description. Betcha can’t wait to hire this person!

DISCONNECTED YOUTH . –The term ‘disconnected youth’ means any individual who is certified by the designated local agency as having attained age 16 but not age 25 on the hiring date, as not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring date, as not regularly employed during such 6-month period, and as not readily employable by reason of lacking a sufficient number of basic skills.

I wonder if the Democrats who voted for the stimulus bill realize they just voted to give a tax break to McDonald’s and WalMart.

Of course, they have no idea of who or what they’ve given breaks too (although I doubt McD’s and Wal-Mart are eager to take on workers with no skills).

And the bill is rife with examples like the above. What is doesn’t have at all are the things economists know work and work immediately – like marginal tax cuts.

Fact Check takes a look at the bill and finds problems with many of the basic promises made (and certainly takes issue with the claim there are “no earmarks” in the bill).

A couple of things Fact Check notes include the claim that digitizing health records and modernizing the electrical grid will be quickly done and provide great savings:

The president also says electronic health records will save billions of dollars. But the Congressional Budget Office says that even a decade of expected savings are unlikely to pay back the government what the government will spend on health IT.

The president said the bill will modernize the nation’s electricity grid, reducing consumption by 2 percent to 4 percent. That’s optimistic. Industry reports say that a new grid could reduce energy consumption by up to 4 percent, but not until 2030 and at a cost much greater than the stimulus bill would cover.

But what this does is get the proverbial government nose under the tent and set up more spending with future bills:

Mr Obama will also propose a budget to lay the groundwork for sweeping health care reform and present a major green energy bill. Mr Obama will also propose a budget to lay the groundwork for sweeping health care reform and present a major green energy bill.

The mistake of the paragraph above is the “groundwork” is being laid with this “stimulus” bill.

So, we’ve added 789 billion to the 750 billion TARP and the possible 1.2 trillion Geithner plan and are contemplating spending hundreds of billions more for “sweeping health care refomr and … a major green energy bill”. And we haven’t even mentioned the coming “AGW” spending debacle.

What generation are we up to now? Have we dragged my great, great, great grandchildren’s generation into to this yet?

Shameful.

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Welcome To The Extended Recession

I was sitting here with my two older grandsons and when word came that the bill had been approved by the Senate I said, “congrats boys, you just went about $30,000 into debt tonight”. Of course that spurred an instant response – “What!?”. And then we had a nice little talk.

Watch for flying pigs

Watch for flying pigs

A bill full of wasteful, unfocused spending with money we don’t have and we’ll be lectured soon about “fiscal responsibility” and “sacrifice” by the profligate yahoos that put this mess together. Can’t wait.

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

They Just Won’t Leave it Alone

T

Apparently, we need a muzzle for this

Apparently, we need a muzzle for this

he Democrats in Congress keep talking about it, and talking about it:  The Fairness Doctrine.  The newest musings about it come from Rep. Maurice Hinchey (D-NY).

More and more Democrats in Congress are calling for action that Republicans warn could muzzle right-wing talk radio.

Representative Maurice Hinchey, a Democrat from New York is the latest to say he wants to bring back the “Fairness Doctrine,” a federal regulation scrapped in 1987 that would require broadcasters to present opposing views on public issues.

“I think the Fairness Doctrine should be reinstated,” Hinchey told CNNRadio. Hinchey says he could make it part of a bill he plans to introduce later this year overhauling radio and t-v ownership laws.

When Bruce addressed this recently, commenter PogueMahone responded:

Well then you are kooks.  This is no fairness doctrine.  Despite the wishes of some, there will be no “fairness doctrine” bill passed.

Kooks.

Huh.  maybe.  But for people who aren’t going to pass it back into law, they sure talk about it a lot.

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

About Those “Corporate” Jets

The other entity who got us into this financial mess has no problem whatsoever about using the equivalent when necessary or convenient while lecturing others about their insensitivity to the times:

A government plane will ferry Sen. Sherrod Brown (D-Ohio) back to Washington from his mother’s wake in Ohio in time to vote tonight, courtesy of the White House.

Brown won’t even be leaving until viewing hours end at 8 p.m. He then travels back to Washington for his mother’s interment, vote and fly home for his mother’s funeral tomorrow morning.

Nope, when government decides it must “maximize the time” of it’s members, it pulls out all the stops and, as usual, you pay for it.

What was the line – “as long as you’re taking our money”?

Well, that’s all government does.

Do as I say, not as I do.

Hope and change.

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Spinning The Census Move

I guess this is “excitable Andy” day, but Andrew Sullivan is engaged in some pretty poor spin today. Calling it a canard, Sullivan has this to say about the proposed census move to the White House by the Obama administration:

Again, this is not a real issue. It’s an issue driven by the paranoid GOP base. The census has not been removed from the Commerce Department’s purview, as Ambers explains below. And past censuses have long been conducted with coordination from the White House staff.

The explanation Sullivan offers says:

“This administration has not proposed removing the Census from the Department of Commerce and the same Congressional committees that had oversight during the previous administration will retain that authority.” …

Kenneth Prewitt, who served as Census director from 1998 to 2001, said he worked with White House staff during the 2000 Census on budgeting, advertising and outreach efforts.

But as Jeff Zeleny of the NYT reminds us, that’s not at all what the White House proposed:

The White House signaled last week that it would exert greater control over the Census Bureau, in part because of a concern among minority groups over Gregg leading the Commerce Department. Then, in response to complaints by Republicans, the administration said it would work closely with the director of the census, but it would not be under the direction of the White House.

Those “minority groups” were the Congressional Black and Hispanic caucuses. So it was political pressure that precipitated the move. Additionally the move was to have the director of the census bureau work with and report directly to Rahm Emanuel, President Obama’s chief-of-staff.

Now the claim is that nothing different was planned, and it all was a misunderstanding and that it will be business as usual (now that it appears a Republican isn’t going to be running Commerce).

A "Spinorama" Adventure

A "Spinorama" Adventure

Of course, that’s nonsense. But not to excitable Andy. He, with his fine tuned discrimination antenna says:

This issue was championed by Republicans for the usual “the-darkies-are-taking-over!” reasons.

Lost in his sloppy analysis is the fact that the announcement by the Obama administration was very specific about the move and why – complaints from the CBC and Hispanic caucus. Also missing is the fact that the move was overtly political and meant to placate the complaining political special interest groups. For a guy who constantly complained about the politicization of the Justice Department, he seems fine with covering an attempt to do the same thing with the census. Coordinating budget and outreach with the executive department isn’t at all the same as proposing a move of the entire census bureau out from under the Commerce Dept. – where it has always been – to the White House.

Sullivan will be fun to watch as he becomes part of the effort to backtrack and coverup for the new administration.

~McQ

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

Buy Dale’s Book!