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Barack Obama Archive

Monday

9

February 2009

0

COMMENTS

Kentucky And Federal Aid

Written by , Posted in Free Markets

Many of you may not be aware, since it’s getting virtually no media coverage, but Kentucky is reeling from a disasterous ice storm that has left more than half a million without power, perhaps for as long as a month.

Reason has done a good job of looking at the federal government’s lack of response, as well as a brief history of federal disaster responses.  Not surprisingly, Reason takes the position, which I share, that the federal government is incapable of competently dealing with such matters.

At the end of the article someone actually helping – by selling generators at marked up prices – is highlighted:

Enter David Strange, the enterprising figure the Associated Press calls the “generator man.” Strange drove the hills and hollows of backwoods Kentucky delivering and setting up generators to those without power—at a $50 to $100 mark-up over retail. Willing customers included a dialysis patient and a powerless 80-year-old woman dependent on an oxygen system. They called him a “godsend,” although Strange prefers “jack of all trades” or even “hustler.” To Adam Smith, he would be recognizable as an agent of the invisible hand.

If President Obama were nimble, he would give Strange a fancy federal title and take credit for his actions. That would make far more sense than trusting the federal government to come to the rescue in times of distress.

Not only will President Obama surely not do this, he’s as likely to throw the man in jail as anything.  You see, “generator man” is actually committing the horrible crime of “price gouging.”  That means that he’s delivering a product to the people who need it most.  Terrible, I know.

Saturday

31

January 2009

1

COMMENTS

Obama's Patriotism Deficient Cabinet

Written by , Posted in Taxes, Waste & Government Reform

“It’s time to be patriotic, time to jump in, time to be part of the deal, time to help get America out of the rut [by paying more taxes]”
– Vice President Joe Biden

Obama Appointments:

Tim Geithner – Secretary of the Treasury – owed $34,000 in back taxes.
Tom Daschle – Secretary of Health and Human Services – owed $128,203 in back taxes.

More to come?  How many other Obama nominees will be found out to lack patriotism, by Joe Biden’s standards?

Friday

23

January 2009

0

COMMENTS

Spot The Disconnect

Written by , Posted in Economics & the Economy

Here’s a story in the news today, see if you can spot the disconnect:

President Barack Obama pressed congressional leaders to reach a consensus on an $825 billion stimulus plan, warning the country may be facing an “unprecedented” economic crisis.

Obama said that, while there are “some differences” between his administration and lawmakers on the details, the legislation is “on target” for passage by mid-February.

“We are experiencing an unprecedented, perhaps, economic crisis that has to be dealt with,” Obama said as he began a meeting with nine Democratic and Republican leaders at the White House, his first such session with lawmakers since taking office.

Each day brings “greater focus on the problems that we’re having, not only in terms of job loss but also in terms of some of the instabilities in the financial system,” he said.

…Obama also criticized the way some companies getting federal bailouts are spending their money, and he said stricter accountability will be part of any future assistance.

Without citing any individual or company, Obama said recent reports “about companies that have received taxpayer assistance, and then going out and renovating bathrooms, or offices, or other ways not managing those dollars appropriately” show the need for more scrutiny.

John Thain, the former Merrill Lynch & Co. chief executive officer ousted yesterday, spent $1.2 million redecorating his downtown Manhattan office last year as the company was firing employees, a person familiar with the project said.

So let’s see if I can understand this.  We need almost a trillion dollars to “stimulate” the economy. Well, isn’t buying furniture stimulating?  Isn’t giving work to carpenters and delivery workers exactly the kind of demand stimulus the Keynesians say we need to revive the economy?

Merrill Lynch is just doing its duty to turn around the economy!  It’s rather disingenuous for Obama to complain about how they are spending taxpayer dollars when he proposes to do the exact same thing on a much more massive scale.

Friday

16

January 2009

1

COMMENTS

Dumbing Down 'Disaster'

Written by , Posted in Liberty & Limited Government

On Tuesday President Bush declared Barack Obama’s inauguration a federal disaster, a move designed to allow more money to funnel into a city that’s about to be up to the neck in hope and change.  But the move also provided a fitting end to Bush’s presidency, as he declared more such disasters than any previous President. It also provides, I suspect, a strong foreshadowing of the disastrous presidency about to begin.

Saturday

10

January 2009

0

COMMENTS

Obama's Job Creation Illusion

Written by , Posted in Economics & the Economy

Obama’s got the economic chicken little routine down pat, and he’s not even president yet.  We are being told every day that if we don’t act immediately with all kinds of big government programs and spending, the economy is doomed.  Not quite.

Chief among Obama’s promises is that he’ll “create or save” millions of jobs (the exact figure fluctuates).  This is fallacious economics.  Obama, like the newspapers that unquestionably regurgitate his statements, is committing one of the most common fallacies of economics: the broken window fallacy.

French economist Frédéric Bastiat described this fallacy of thinking in his classic 1848 essay on What Is Seen and What Is Not Seen.

Have you ever been witness to the fury of that solid citizen, James Goodfellow, when his incorrigible son has happened to break a pane of glass? If you have been present at this spectacle, certainly you must also have observed that the onlookers, even if there are as many as thirty of them, seem with one accord to offer the unfortunate owner the selfsame consolation: “It’s an ill wind that blows nobody some good. Such accidents keep industry going. Everybody has to make a living. What would become of the glaziers if no one ever broke a window?”

Now, this formula of condolence contains a whole theory that it is a good idea for us to expose, flagrante delicto, in this very simple case, since it is exactly the same as that which, unfortunately, underlies most of our economic institutions.

Suppose that it will cost six francs to repair the damage. If you mean that the accident gives six francs’ worth of encouragement to the aforesaid industry, I agree. I do not contest it in any way; your reasoning is correct. The glazier will come, do his job, receive six francs, congratulate himself, and bless in his heart the careless child. That is what is seen.

But if, by way of deduction, you conclude, as happens only too often, that it is good to break windows, that it helps to circulate money, that it results in encouraging industry in general, I am obliged to cry out: That will never do! Your theory stops at what is seen. It does not take account of what is not seen.

It is not seen that, since our citizen has spent six francs for one thing, he will not be able to spend them for another. It is not seen that if he had not had a windowpane to replace, he would have replaced, for example, his worn-out shoes or added another book to his library. In brief, he would have put his six francs to some use or other for which he will not now have them.

Let us next consider industry in general. The window having been broken, the glass industry gets six francs’ worth of encouragement; that is what is seen.

If the window had not been broken, the shoe industry (or some other) would have received six francs’ worth of encouragement; that is what is not seen.

The same principle applies to government spending.  In order to fund these job creation programs, money must first be taken out of the economy either by taxes or borrowing.  What is seen are the people put to work doing some activity, productive or not, that government pays them to do.  What is not seen are the people that could not be hired in the private sector because there was less capital available.  The outcome is not job creation, but job shuffling.  Jobs will move out of politically unfavored industries (most everything) and into favored industries (green, alternative fuel, etc.).

So on first analysis, the outcome would be no net change.  But it’s actually worse than that.  There is a cost to transferring this wealth.  Tax collectors must be paid, while big bureaucracies will be created to administer these programs.  This is a productive loss to the economy, so the net effect of Obama-style stimulus is actually negative.

Of course, Obama has made sure to word his promises such that they cannot be falsified by events.  Because he says that he will create or save jobs, actual employment figures can never prove him wrong.  Whatever happens, he can just claim that, had he not acted, it would have been worse.

Tuesday

6

January 2009

0

COMMENTS

Biden Goes To War

Written by , Posted in Economics & the Economy

Joe Biden has finally realized we’re at war.  This might be encouraging if he was referring to radical Islamic jihad.  Sadly, Joe Biden has another enemy set in his sights: the economy.

Vice-president-elect Joe Biden likened the country’s economic crisis to the attacks of 9/11 Monday in a private meeting on Capitol Hill.

“We’re at war,” Biden told congressional leaders of both parties during their sit-down with Barack Obama in the Capitol, according to two sources familiar with the exchange.

It’s not the first time the vice-president-elect has used stark language to underscore the perilous state of the economy. In an interview last month on ABC’s “This Week,” Biden said that a stimulus package was needed to keep the economy from “absolutely tanking.”

Biden spokeswoman Elizabeth Alexander said Biden “was speaking of how after September 11th, that the Congress came together and worked together for the sake of the country, that the Congress worked day and night to accomplish what was necessary. We did it then and we can do it now.”

The left has been dying to find a crisis they could exploit to pass their big government agenda.  As soon to be chief-of-staff Rahm Emanuel put it, “Never let a serious crisis go to waste.”

Obama fashions himself after FDR, a disaster of a President who prolonged the misery of the 30’s.  Roosevelt also understood the power of crisis for making huge power grabs.  He even went so far as to try to deliberately exacerbate the crisis, arguing with his Treasury Secretary, Henry Morgenthau, that they should manipulate bond prices and keep them chaotic for political gain.

Will Obama-Biden stoop to that level?  It’s impossible to know, but the agenda they plan to ram through, under the false pretense of “saving” us from a financial crisis that left only 99.65% of commercial banks in business through 2008, will be bad enough.  In order to ensure this agenda can pass without too much scrutiny, expect them to continue sounding the false siren of war.

Tuesday

30

December 2008

0

COMMENTS

Déjà vu all over again

Written by , Posted in Economics & the Economy

I recently finished reading New Deal or Raw Deal?: How FDR’s Economic Legacy Has Damaged America by Burton Folsom, Jr. In it he provides a thoroughly supported rebuke of the popular FDR administration.

That Roosevelt’s economic policies prolonged the depression, and still holds the prospect of national bankruptcy over our heads, was not news to me. Contrary to helping us through the Great Depression, we know now that FDR prolonged it dramatically. The list of bone-headed policies promoted by FDR is long, and includes a 100% income tax on all income over $25,000, paying farmers not to produce, and wage and price controls. Really, the best thing he ever did for our economy was to die.

But what was really fascinating was how FDR, a habitual liar, popularized almost all of the political behavoirs we criticize today. He quite possibly did more than all other Presidents combined to undermine our Constitutional government and its system of checks and balances. Furthermore, he showed that the easiest way to electoral success is through political patronage. By funneling massive amounts of federal dollars through his supporters, while simultaneously abusing federal institutions to harass and destroy his opponents (the use of the IRS for political purposes is another of his legacies), Roosevelt easily cruised to reelection (twice!) despite a record of near complete failure. This failure was best summed up by FDR’s Treasury Secretary of over 10 years, Henry Morgenthau Jr., who said:

We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong…somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises….I say after eight years of this Administration we have just as much unemployment as when we started….And an enormous debt to boot!

The lessons of this book are frighteningly applicable to today. As Obama looks to repeat the economic failures of Roosevelt, those who care about the Constitution have every reason to fear that, by emulating FDR’s corruption, he can also repeat his electoral successes and secure a new New Deal Coalition to rain terror over our economy and freedoms for another generation. Reading this book is a good first step to knowing how to stop him.

Wednesday

3

December 2008

0

COMMENTS

Another Obama Promise Goes Down In Flames

Written by , Posted in Economics & the Economy, Energy and the Environment, Taxes

A funny thing happens when you become president, you can’t blindly advocate stupid ideas knowing you’ll never be held responsible for the outcome.  Apparently Obama realized this:

President-elect Barack Obama is not planning to implement a windfall profit tax on oil companies because prices have dropped below $80 a barrel, an aide said on Tuesday.

“President-elect Obama announced the policy during the campaign because oil prices were above $80 per barrel,” an aide on Obama’s transition team said. “They are currently below that now and expected to stay below that.”

Oil prices have fallen from a record $147 a barrel in July to under $50 this week.

That nonsense about the price of oil having anything to do with it (why the hell would you tax companies more for something they have no control over?) is just spin to placate the anti-capitalist left – who wanted to stick it to the big, eeeeeevil oil companies.  Far more likely, his economic team said, “Hey, this is a really dumb idea that will have very negative economic consequences.  Only an idiot would do this again.”

Obama is no idiot, so he probably knew this already.  But he is, apparently, a fraud who will promote idiotic policies, knowing they would be harmful if implented, to pander to his radical base.  It could be worse though: he could actually believe the nonsense he peddled for the last 2 years.

Wednesday

26

November 2008

1

COMMENTS

Darfur Our Next Intervention?

Written by , Posted in Foreign Affairs & Policy

Dr. Susan Rice is now said to be the leading contender for Ambassador to the U.N. in the Obama administration. The pick would be telling in terms of the foreign policy Obama plans to pursue, and how it doesn’t square with his campaign rhetoric. In 2006 Rice argued for military action, unilateral if necessary, in Darfur:

History demonstrates that there is one language Khartoum understands: the credible threat or use of force. After Sept. 11, 2001, when President Bush issued a warning to states that harbor terrorists, Sudan — recalling the 1998 U.S. airstrike on Khartoum — suddenly began cooperating on counterterrorism. It’s time to get tough with Sudan again.

After swift diplomatic consultations, the United States should press for a U.N. resolution that issues Sudan an ultimatum: accept unconditional deployment of the U.N. force within one week or face military consequences. The resolution would authorize enforcement by U.N. member states, collectively or individually. International military pressure would continue until Sudan relented.

The United States, preferably with NATO involvement and African political support, would strike Sudanese airfields, aircraft and other military assets. It could blockade Port Sudan, through which Sudan’s oil exports flow. Then U.N. troops would deploy — by force, if necessary, with U.S. and NATO backing.

If the United States fails to gain U.N. support, we should act without it. Impossible? No, the United States acted without U.N. blessing in 1999 in Kosovo to confront a lesser humanitarian crisis (perhaps 10,000 killed) and a more formidable adversary. Under NATO auspices, it bombed Serbian targets until Slobodan Milosevic acquiesced. Not a single American died in combat. Many nations protested that the United States violated international law, but the United Nations subsequently deployed a mission to administer Kosovo and effectively blessed NATO military action retroactively.

Many on the left may be surprised at these positions. Likely, they took Democratic leaders at their word when they explained their reasons for attacking Bush on Iraq. Those of us more familiar with political history – such as Clinton’s unilateral sidestepping of the U.N. in Kosovo – and the intellectual currents driving policy debates, saw it for what it was: an argument of convenience.

Left-wing interventionists are actually more common than right-wing ones. Before the neoconservatives had won the day in establishing Republican policy, there was Secretary Madeliene Albright, who asked Colin Powell, “What’s the point of having this superb military you’re always talking about if we can’t use it?” The ironic difference between the left and right interventionists is this: on the left they only want to use force when U.S. interests are non-existent. Boondoggle that Iraq was in many ways, at least there was a debatable, though certainly plausible, claim of serving U.S. national interests in deposing Saddam. One can’t even make a pretense of serving U.S. interests in Darfur.

When the French foreign minister said, “We cannot accept either a politically unipolar world, nor a culturally uniform world, nor the unilateralism of a single hyper-power,” he wasn’t talking about Bush. The statement was made in 2000 and referred to the administration of Bill Clinton. With Clintonites now littered throughout Obama’s emerging administration, yet another reversal looks to be in order, this time on the usefulness of unilateralism and interventionism.

Monday

24

November 2008

4

COMMENTS

Polarization: No End In Sight

Written by , Posted in Liberty & Limited Government

While John McCain and Barack Obama disagreed on taxes, health care and foreign policy, there is at least one issue on which they found common ground during the recent presidential campaign: the polarization of Washington and the nation. Both candidates made it one of their central themes. McCain observed that he’s “never seen Washington as polarized as it is today,” while Obama thought that President Bush “polarized us when he should have pulled us together.”  McCain promised, while accepting his party’s nomination, to end the “constant partisan rancor” of Washington, while Obama made sure to clarify that he wasn’t blaming voters by noting that “the country is not as polarized as our politics would suggest.” Rather, we are to conclude, it is cynical politicians who exploit wedge issues to win elections, and launch personal attacks against their opponents, that are to blame. To hear each candidate tell it, all we need is the right leader with a conciliatory tone to unite America and end polarization. History shows this to be a fantasy.

The conventional wisdom is that politicians create polarization by being excessively negative in their campaigning. Every four years we are told that the current election is the most negative in history. Commentators bemoan the debasement of the political process, while reporters highlight voters turned off by the negative tone. Rarely are these assertions placed into historical context. The problem with the conventional wisdom is that our politics are no more contentious today than in the past.

The birth of the attack campaign can be traced back to 1800 and the contest between President John Adams and then Vice-President Thomas Jefferson. Despite the personal friendship of the candidates, the campaign was brutal. Adams was accused of having a “hideous hermaphroditical character, which has neither the force and firmness of a man, nor the gentleness and sensibility of a woman.” Jefferson was “a mean-spirited, low-lived fellow, the son of a half-breed Indian squaw, sired by a Virginia mulatto father.”

This is not to say that Americans haven’t become more polarized, but we should separate the distinct issues of campaign negativity and polarization of voters. Political mudslinging is not new, but there has been an increase in the degree to which voters view others as not just political opponents, but as outright enemies. Negativity is a constant and thus incapable of explaining changes in polarization. To what, then, can we attribute increasing polarization?

While negative campaigning has not changed since 1800, the size and scope of government has. It doesn’t matter which measurement is used; they all tell the same story. Per capita expenditures – the amount of money spent by the government per citizen – exploded during the 20th century, growing in 2004 to 55 times that of 1910. Total government expenditures at all levels (federal, state and local) grew 417% in just the last half century. Economic growth cannot account for this increase, as it has been significantly outpaced by government spending. With the federal government falling all over itself to hand out shockingly large sums of money to banks, automakers and any other big business that asks nicely, or at all, this trend shows no signs of slowing.

Despite the modest downsizing after the end of the Cold War, by 2000 the federal government employed almost 3 million people, and government employment at the federal, state and local level now combine for 16% of the total national work force. There are ten additional cabinet positions compared to the beginning of the 20th century. So in addition to spending more, they are also doing more.

We have all these bureaucrats to manage the regulations covering every aspect of our lives. Government tells us what we can eat, where we can smoke, what medicines we can use and what insurance we can purchase. It even tells us who we can marry and where we must send our children to school, along with what they must be taught.

This intrusion of government has sparked the “culture war.” It exists because government, by design, requires one-size-fits-all solutions on issues on which there is no one size that fits all. As an example, when parents cannot choose where to send their kids to school, they must fight within the political system to see that the schools teach what they want. Different parents have different ideas, often mutually exclusive, on what they want their children to learn. Because they must fight over control of the same system, some must inevitably lose.

When issues of importance to the people must be fought over, it’s understandable that the fighting can be intense. A lot is at stake in every election. Repeat this process again and again, on issue after issue, and it is little wonder why Americans are polarized today. Government has pit us against our fellow citizens in a battle for control of our own lives. It’s a battle we can only lose, and which the new administration’s big government programs can only make worse.