Free Markets, Free People

Obama Administration

Observations: The QandO Podcast for 29 Jan 12

This week, Bruce, Michael, and Dale talk about the SOTU speech, Republican race, and slow collapse of the EU.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

Observations: The QandO Podcast for 22 Jan 12

This week, Bruce, Michael, and Dale talk about the Republican primaries and the Keystone decision.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

Observations: The QandO Podcast for 16 Jan 12

This week, Bruce, Michael, and Dale talk about the Marines incident, re-organizing government, and the coming economic collapse.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

Observations: The QandO Podcast for 18 Dec 11

This week–our last podcast before we go on hiatus for the Christmas Holidays–Bruce, Michael, and Dale talk about the end of the Iraq war, and the Republican nomination race.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

Observations: The QandO Podcast for 11 Dec 11

This week, Bruce Michael, and Dale record talk about China, illegal immigration, and Egypt.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

The Mask Comes Off

President Obama did the nation a huge service today, in two respects. First he took off the mask and told us explicitly that the "change" he wants is an explicit move towards welfare-state socialism, and, second, in doing so, he set out the major thrust of his re-election campaign. In a 55-minute speech in Osawatomie, KS, the president explicitly argued that capitalism is a failed economic system, and the main thrust of government economic policy should be the redistribution of income.

It’s darkly amusing that he makes this argument just weeks—perhaps months—before a major political and financial crisis, caused mainly by their socialist policy leanings, strikes Europe. They are just about to hit the stark reality of what happens when you run out of other people’s money to spend to finance extravagant social benefits. President Obama, it seems, is keen to rush us down the road to meet them. Not that we aren’t already pretty far down that road ourselves. The national debt is now over $15 trillion, more or less 100% of GDP, with no clear path to reducing that percentage in the near future, or even in reducing the rate of growth substantially.

President Obama apparently thinks that the solution is to take the money from "the rich" and distribute it to the rest of us. The trouble is, we could take pretty much everything the rich have, as well as all the profits of all the Fortune 500 companies, and it wouldn’t even even cover 1 year’s worth of government spending. As economist Walter William notes:

This year, Congress will spend $3.7 trillion dollars. That turns out to be about $10 billion per day. Can we prey upon the rich to cough up the money? According to IRS statistics, roughly 2 percent of U.S. households have an income of $250,000 and above. By the way, $250,000 per year hardly qualifies one as being rich. It’s not even yacht and Learjet money. All told, households earning $250,000 and above account for 25 percent, or $1.97 trillion, of the nearly $8 trillion of total household income. If Congress imposed a 100 percent tax, taking all earnings above $250,000 per year, it would yield the princely sum of $1.4 trillion. That would keep the government running for 141 days, but there’s a problem because there are 224 more days left in the year.

How about corporate profits to fill the gap? Fortune 500 companies earn nearly $400 billion in profits. Since leftists think profits are little less than theft and greed, Congress might confiscate these ill-gotten gains so that they can be returned to their rightful owners. Taking corporate profits would keep the government running for another 40 days, but that along with confiscating all income above $250,000 would only get us to the end of June. Congress must search elsewhere.

According to Forbes 400, America has 400 billionaires with a combined net worth of $1.3 trillion. Congress could confiscate their stocks and bonds, and force them to sell their businesses, yachts, airplanes, mansions and jewelry. The problem is that after fleecing the rich of their income and net worth, and the Fortune 500 corporations of their profits, it would only get us to mid-August.

We could take everything the rich have, and it still wouldn’t give us a balanced budget for one year. Collecting money the next year would also be…problematic, too.

But, the president has to be—well, not admired, exactly, but recognized—for his utter inability to accept that reality. As well as his apparent ability to construct "realities" that aren’t true.

At no time during the president’s hour-long perversion of the country’s economic history did he even allude to the massive growth in government spending we’ve seen, the cronyism between government and big business that led to private profits and socialized losses, or the explosion of debt that’s grown from $1 trillion in 1980 to $15 trillion today, all of which has resulted in removing money from the productive economy, and funneling it into government priorities, rather than into private income and investment. At no time did he mention the aggressive enforcement of the Community Re-Investment Act, which essentially forced banks into making sub-prime loans—indeed, explicitly instructed banks to make such loans—that led to the mortgage bubble and, when the less credit-worthy mortgagees couldn’t pay, it’s collapse—as a prime cause of our present economic difficulties. These are failures of government, and the president calls it a failure of capitalism.

"The market will take care of everything," they tell us. If we just cut more regulations and cut more taxes — especially for the wealthy — our economy will grow stronger. Sure, they say, there will be winners and losers. But if the winners do really well, then jobs and prosperity will eventually trickle down to everybody else. And, they argue, even if prosperity doesn’t trickle down, well, that’s the price of liberty.

Now, it’s a simple theory. And we have to admit, it’s one that speaks to our rugged individualism and our healthy skepticism of too much government. That’s in America’s DNA. And that theory fits well on a bumper sticker. (Laughter.) But here’s the problem: It doesn’t work. It has never worked.

In the president’s mind, economic freedom and capitalism don’t work. Never have. How he explains America’s ability to become the richest country the world has ever seen while operating under such a system is a complete mystery. And never mind that, to the extent the American system has failed, it is the reduction of economic freedom and the growth of government—especially over the last 50 years—that caused the failure.

But have no doubt that he believes this foolishness, even as the government-run technocracy he admires so much is literally weeks away from running the European Union’s economy straight into the ground. In a bit less than a year from now, we’ll see whether a majority of Americans believe it as well.

And if they do believe it, then the interesting question will be how they expect to pay for it.

~
Dale Franks
Google+ Profile
Twitter Feed

Observations: The QandO Podcast for 18 Sep 11

In this podcast, Bruce Michael, and Dale discuss Solyndra affair, and some troubling news from Turkey.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

Observations: The QandO Podcast for 11 Sep 11

In this podcast, Bruce Michael, and Dale discuss discuss the president’s proposed jobs bill, Gunwalker, and Solyndra.

The direct link to the podcast can be found here.

Observations

As a reminder, if you are an iTunes user, don’t forget to subscribe to the QandO podcast, Observations, through iTunes. For those of you who don’t have iTunes, you can subscribe at Podcast Alley. And, of course, for you newsreader subscriber types, our podcast RSS Feed is here. For podcasts from 2005 to 2010, they can be accessed through the RSS Archive Feed.

The White House stimulus chart

The gift that keeps on giving: The White House’s chart of unemployment predictions in the Stimulus/no Stimulus world. Superimposed is the graph of actual unemployment, but now, with wall street economists predictions for the near-term future.

romney1

I think a big speech will help, though. ‘Cause that’s what we’ve been missing. Speeches.

The analysis of that speech is pretty straightforward and simple. We’ve spent $800 billion for TARP, $1.4 trillion in the stimulus package, and $2 trillion in quantitative easing from the Fed. Now, if we spend another $430 billion on the American Jobs Act, that’ll be the fix we’ve been looking for, and everything will be peachy.

The president’s child-like faith in the power of government is touching. And frightening.

~
Dale Franks
Google+ Profile
Twitter Feed

2012 is gonna be nasty

Mitt Romney is upset that the Obama team is planning to run a negative campaign of personal attacks against him.

Obama has remained personally popular — scoring as high as an 86 percent approval rating in the District of Columbia in a recent Gallup poll. But while he’s personally well-liked, the president’s overall approval rating is 43 percent compared to 48 percent disapproval, according to Gallup.

With that knowledge and the poor economic climate, Politico reported that the Obama campaign has no choice but to give up the 2008 campaign of "hope" and turn negative, portraying the incumbent as "principled" whereas Romney is an "opportunist." 

By the way, going to a DC Poll to prove how well-liked Obama is, seems like a pretty clear case of cherry-picking your polls for a positive result. In any event, there’s more from Politico:

The dramatic and unabashedly negative turn is the product of political reality. Obama remains personally popular, but pluralities in recent polling disapprove of his handling of his job, and Americans fear the country is on the wrong track. His aides are increasingly resigned to running for reelection in a glum nation. And so the candidate who ran on “hope” in 2008 has little choice four years later but to run a slashing, personal campaign aimed at disqualifying his likeliest opponent…

“Unless things change and Obama can run on accomplishments, he will have to kill Romney,” said a prominent Democratic strategist aligned with the White House.

The onslaught would have two aspects. The first is personal: Obama’s reelection campaign will portray the public Romney as inauthentic, unprincipled and, in a word used repeatedly by Obama’s advisers in about a dozen interviews, “weird.”

Bill Clinton’s 1992 campaign focused on a now-famous aphorism: "It’s the economy, stupid." It was the top theme of the campaign that carried the Arkansas governor to the White House. Skip forward 20 years, though, and the Obama administration’s campaign can rightfully be characterized with the slogan "It’s anything but the economy, stupid!" Seeking re-election with 9%+ unemployment and sub 2% GDP growth means that the economy is literally the last thing you want to discuss.

In fact, it’s difficult to figure out what, exactly, the Democrats can push as a positive result of the Obama Administration.  His signature achievement, Health Care Reform, remains deeply unpopular. The debt to GDP ratio has risen to 100%—and no doubt will be higher next year. For all his talk about deficit reduction, the president hasn’t actually put forward a written plan, though he has given a number of speeches.  His signature economic reform at the moment appears to be increasing taxes on "the rich", i.e., any family making more than $250,000 in household income. But beyond that is the deeper fear that the social welfare statism that has been the central tenet of the Democratic party for the last 30 years is simply unsustainable.  Not only is it nearly impossible to financially justify any real expansion of social democracy in the US, it’s difficult to see how even the current levels of welfare state spending can be sustained.

For the last three decades, Republicans have made soothing mouth noises about smaller government, while in actual practice, have continued driving the car off the cliff. The main difference between them and the Democrats, is that the Republican establishment has been firm in their refusal to upshift past third gear. On most occasions, anyway. That hasn’t really been particularly helpful. Both Republicans and Democrats in the political class have embraced a set of assumptions that spending increases are baked into the budget baseline, that any reductions in that baseline increase are "cuts", and that the time for financial rectitude—if it ever came—was at some hazy point in the far future.

Sadly, we’ve learned, as Rams coach George Allen used to tell us, that the future is now.

So, now, there’s the rising threat of the TEA Party, and their explicit argument that the welfare state experiment has been a financially disastrous failure, in that, even if one were to stipulate, arguendo, that the Democratic Party’s policies accomplished everything they wished in terms of creating a compassionate society, it would still be doomed to end due to the unsupportable financial burden it imposes. But, of course, while the latter is true, the former certainly isn’t, so there’s declining enthusiasm for continuing to support expensive programs that simply don’t accomplish their stated objectives.

In such an electoral climate, what remains, in the absence of any solid record of accomplishment, growing distrust of government, and financial/economic failure, is simply the will to power. And to maintain that power, destructive personal attacks are just about the only tool left in the Obama campaign toolbox. After all, we’ve already seen the change, and, so far, it hasn’t offered much hope.

The attacks that have been launched on the TEA Party are instructive.  If you can judge the quality of an opponent’s threat by the response it provokes in his enemies, then the TEA Party is enormously threatening to the entrenched political class. So far, they’ve been subjected to accusations of racism, extremist violence, been blamed for the failure of debt ceiling negotiations and the S&P downgrade of US debt, and derided as cranks and "hobbits".  Nearly every political ill has been ascribed to them by the political class—Democrats and establishment Republicans alike. I can only presume that this is because the political establishment perceives them as a threat.

By the same token, any Republican candidate can now expect withering personal attacks in response to any perceived electoral threat to President Obama. It may come from the Obama Campaign. It may come from media surrogates like Tina Brown’s Newsweek, which intentionally ran a cover picture this week whose sole purpose was, apparently, to make Michelle Bachmann look like a loon. It may come from campaign surrogates like SEIU union goons to heckle and disrupt campaign rallies. 

But, there’s no doubt that we’re in for a high level of personal nastiness and invective. This election is not going to be about some minor adjustment to spending, or some trifling adjustment of tax rates, or some nibbling at the edges of the regulatory state.  What is at stake in the 2012 election is the continuation of a world-view; a political philosophy that sees ever-larger government as the cure to whatever ails us. This next election is the first big battle for the survival of that worldview as the majority view of the political class, or the survival of the insurgent TEA party idea that government has become to large, too intrusive, and too expensive, so therefore must be radically reduced. There is little room to compromise between these two visions of government.  Indeed, in most ways, they are worldviews that are mutually exclusive. Over the next decade or so, we are going to learn which of these two views will prevail, and if the US, as presently composed, will remain a united polity.

We are now at a point where the fabric of the Republic is about to be tested as it hasn’t been since the Civil War, and this election is the first major event in that test.

It’s not going to be pretty.

~
Dale Franks
Google+ Profile
Twitter Feed