Category Archives: Government

UPDATED: McCain's Idea Of A Spending Cut

Britain, Conservatism, Debt, Foreign Policy, Government, John McCain

How serious are Republicans about revolutionary cuts in state spending? John McCain serious.

McCain’s idea of “spending cuts,” just articulated to Fox News’ Shepard Smith, is cutting National Public Radio loose, and doing away with earmarks. I doubt these will cover a day’s interest payment on the national debt.

McCain’s notion of heeding the voter: securing the borders and reforming, not repealing, ObamaCare. Remind me again why movement conservatives betrayed J. D. Hayworth, who ought to have beaten Senator John McCain in the Arizona GOP primary.

Contrast McCain’s worse-than-futile slashes to the state with the reductions the British have begun to make.

BBC News: “Chancellor George Osborne has unveiled the biggest UK spending cuts for decades, with welfare, councils and police budgets all hit.”

A “19% average cuts to departmental budgets,” as well cutting “higher education spending by 40%, flood defences by 15% and sport England and UK Sport by 30%”—this is better than increasing spending as we are. Of course, price controls, such as on rail fares, are being tinkered with, namely “allowed to increase by 3% above RPI inflation from 2012.”

No doubt, certain cuts in the UK are an illusion, to be replaced by other, slightly modified programs. But again: better to fire 500,000 state workers than to hire 1.4 million census stalkers.

Prick up your ears when you hear promises to dismantle the IRS, the Department of Education, and to recall ALL troops, and the installations erected to satisfy their needs, from the over 100 countries in which they are stationed. That’ll be a modest beginning.

UPDATED: As to “Fair Tax,” campaigned for by the likes of Mike Huckabee and liberventionist Neal Boortz. When these two are right, it is only by accident. So you’re safe opposing most of their pet issues. I don’t like the “Fair Tax.” Granted, a tax on consumption is only an indirect tax on income.

Here’s Ron Paul:

A: We have to cut spending. You can’t get rid of the income tax if you don’t get rid of some spending. But, you know, if you got rid of the income tax today you’d have about as much revenue as we had 10 years ago, and the size of government wasn’t all that bad 10 years ago. There are sources of revenues other than the income tax. You have tariff, excise taxes, user fees, highway fees. So, so there’s still a lot of money. But the real problem is spending. But, you know, we lived a long time in this country without an income tax. Up until 1913 we didn’t have it.

Q: But if you eliminate the income tax, do you know how much lost revenue that would be?

A: A lot.

Q: Over a trillion dollars.

A: That’s good.

But since I have been called a Pollyanna, let me say this: the 16th is “The Number of The Beast”; it needs to be abolished. Taxation is immoral and naturally illicit. But given that, realistically, the state will not so do, a a flat, low tax is a pragmatic solution. Let the poor set the rate. The Russians have a low flat tax. As Dan Mitchell reports, “The former communists running Russia apparently understand tax policy better than the buffoons in charge of U.S. tax policy. Not only does Russia have a 13 percent flat tax, but the government has just announced it will eliminate the capital gains taxA pure flat tax would preclude any capital gains tax.

The Fair Tax our local buffoons propose is prohibitive.

Zombie Zakaria Has Some “Ideas” For You

Affirmative Action, America, Education, Europe, Government, Labor, Multiculturalism, Outsourcing, Political Economy, Science, Technology

Fareed Zakaria: is there anyone more inane and wishy-washy than he? Zombie Zakaria’s “Restoring the American Dream” presentation is in the tradition you’ve come to expect from this CNN pundit.

Thus, Fareed vows to “bring you solutions” to “the hollowing out of the middle class” by growing the state’s role in R & D, for, as he concludes, “Almost all of the science and technology research that we take for granted now came out of the Defense Department spending post World War II.”

But surely, and logically, we cannot assert that because the DOD (the Department of Defense) gave rise to certain technologies, without it these inventions would not exist, as ZZ claims? It might be the case that sans state intervention, there would be even more innovation than with it.

This guy’s “ideas” are festooned with similar falsehoods.

Another of ZZ’s lessons comes courtesy of the super-productive German workforce.

“Despite some of the highest wages in the world, strong unions, lots of regulation, Germany has maintained a very powerful manufacturing base, employing millions,” ZZ opined. “It has held in good stead during this economic crisis. Germany’s unemployment rate has actually fallen for the past 15 months straight, an unbelievable record in this economic climate.”

As ZZ narrated the above passage, images of industrious German factory workers flashed on the screen, and were contrasted with the long lines of the unemployed in America. Guess what the American assembly and unemployment lines look like? You are right: By comparison, the German workforce so famous for its industry looked relatively homogeneous.

Still, ZZ hopes to apply efficiencies learned from the German cohort to America’s increasingly third-world, imported, underclass of workers. (“The United States,” we are told, “now ranks 52nd in the world in quality of science and math education.” It used to have “very high levels of performance in math and science.” What happened other than suffocating unionization in education, third-world immigration, and affirmative action?)

As Fareed and his well-to-do, high-achieving (indubitably high IQ) guests conclude, and I paraphrase, opportunities are indeed boundless if somebody has the smarts and the motivation; everybody can be the designer of an iPod or a programmer at Google; this essentially, is not a rarified group. Any one can get to be at “the top end of America.”

ZZ’s smart panel, which can never be called an interest group plumping for government/taxpayer subsidies (no never!), included Eric Schmidt, CEO of Google; Muhtar Kent, chairman and CEO of Coca-Cola; Lou Gerstner, who has run R.J. Reynolds, American Express and IBM; and Klaus Kleinfeld, CEO of Alcoa, the aluminum giant.

All were agreed that laborers are interchangeable in as much as potential is concerned, and if given the right conditions by government.

I have advocated in my writings for “a natural shift from a credit-fueled, consumption-based economy, to one founded on savings, investment and production.”

ZZ favors only a shift from consumption to investment; massive federal-government investment.

UPDATED: A Vote For Chile’s President

America, Barack Obama, Bush, Free Markets, Government, Media, Technology, Trade

The following is from “A Vote For Chile’s President,” my latest WND column:

“President Barack Obama took to the podium well before President Sebastian Piñera did. Chile’s president bided his time patiently with the group of rescue workers in hard hats, until all 33 miners had surfaced from deep within the San José copper-gold mine, in northern Chile, where they had been entombed for 69 days.

If not for the translator’s running commentary, I would not have guessed that the man with a beaming smile—so different from Obama’s gleam of dentition and Bush’s demented grin—last in-line to meet and greet the miners who ascended from hell, was no other than Chile’s president. Sebastian Piñera wife, first lady Cecilia Morel, was equally low-key, fading into the background and ceding to the heroes of the unfolding drama.

The images transmitted from Camp Esperanz showed no swat teams, personal body guards, or retinues of handlers and props—the sort of ‘presidential comitatus’ that accompanies the head of the American hyperpower everywhere.

At ‘Camp Hope,’ the pensive group of rescuers and their president looked like a band of brothers. The media scrum did nothing to shatter what was almost a religious atmosphere. All present—mining men, the rescued and the rescuers, and their families—seemed oblivious to the din from the outside world. Nobody appeared star-struck; few were playing to the cameras. All present had eyes for one another alone. Expressions of joy were all the more poignant because so dignified. There was no slobbering, no Geraldo-Rivera hyperbole.” …

The compete column, now on WND.COM, is “A Vote For Chile’s President.”

Next week I hope to introduce you to the work of a dear friend, Professor Dennis O’Keeffe, who has just written a gem of a book about Edmund Burke. My conversation with Dennis will be the first of a two-part interview. You’ll enjoy it.

And do read my libertarian manifesto, Broad Sides: One Woman’s Clash With A Corrupt Society.

The Second Edition features bonus material and reviews. Get your copy (or copies) now!

UPDATE (Oct. 16): Star Parker in “What Chile can teach America about freedom”:

But back just a little less than 40 years ago, Chile was a typical, poor South American nation, with intrusive government and sluggish growth.
How was it transformed?
Read a short essay called “How the Power of Ideas Can Transform a Country,” by one of the leaders that made it happen – Jose Pinera.
He relates how, in the mid-1950s, the Catholic University of Chile signed a cooperation agreement with the Department of Economics of the University of Chicago, then home to the world’s top free-market economists, including the legendary Milton Friedman.
Milton Friedman’s classic “Capitalism and Freedom” explains how individual liberty can only thrive when accompanied by economic liberty
Thus began the education of a generation of young Chileans in the wisdom of economic freedom.
Beginning in the late 1970s, these young leaders, with newly minted Ph.D.s, helped implement new economic reforms in Chile protecting private property and promoting free trade.
A graph showing annual economic growth in Chile over the last hundred years looks like a hockey stick. From the early part of the twentieth century until 1980, the line is flat, averaging less than 1 percent growth per year. But beginning 1980, growth takes off in a vertical surge, averaging over 4 percent per year.

UPDATED: Healthcare Under The Hammer

Government, Healthcare, Law, Regulation, The State

The judicial, legislative, and executive are in an unholy alliance that has long since sundered the 10th Amendment, namely constitutional individual and states’ rights. As we wait on the tyrannical federal trinity to issue decrees in response to the challenge to Obamacare launched by “20 different lawsuits with 21 different states as plaintiffs,” TIMES-DISPATCH COLUMNIST A. BARTON HINKLE provides valuable background analysis.

How Will the Court Rule in Mandate Case?
By A. BARTON HINKLE

Predicting how the Supreme Court will rule in a given case is often a sketchy business. The court doesn’t break down neatly along liberal/conservative, or big-government/small-government, lines. For every Heller or Citizens United infuriating the left, there’s a Kelo or Raich to send steam billowing out of conservatives’ ears.

So there’s no telling how the Supremes might come down on the question of whether Obamacare’s individual mandate is constitutional. Now that a federal judge has refused to dismiss Attorney General Ken Cuccinelli’s suit against it, proponents of the Patient Protection and Affordable Care Act will have to argue the case on the merits.
That might not be as easy as some have assumed. This becomes clear from an amicus brief submitted by Ilya Somin — a law professor at George Mason — along with the Washington Legal Foundation and assorted other law profs from around the country.

Somin notes that, as Madison said, the Constitution does not grant Congress “an indefinite supremacy over all persons and things.” Rather, it lists a finite set of federal powers — and forcing people to buy consumer goods is not one of them.

True, the federal government does many other things the Constitution does not explicitly mention, and the power to do them is taken to be implied. So proponents of the individual mandate hang their hat on a couple of different hooks.

One is the Commerce Clause, granting a congressional power to regulate interstate commerce. The Supreme Court has broken down the Commerce Clause into three parts: regulating the channels of interstate commerce, the instrumentalities of commerce, and the “activities” that “substantially affect” interstate commerce. But, Somin writes, “an individual’s mere status as uninsured is neither an instrumentality of interstate commerce, such as a road or airport, nor . . . is being uninsured a person or thing that travels in interstate commerce.” And it is absurd to claim that inactivity constitutes activity.

To see why, Somin goes back to the decision in Gonzales v. Raich, in which the court ruled that growing marijuana for personal medical use — an activity that is neither commerce nor interstate — could be forbidden under the Interstate Commerce Clause. The Supreme Court ruled that Congress had broad authority under the clause to regulate even “noneconomic activity.”

But unlike growing marijuana, not purchasing health insurance is not even an activity, and it is fatuous to pretend otherwise. The Commerce Clause gives Congress the power to regulate transactions between Jim and Bob. It doesn’t give Congress the power to force Fred, who had been resting under a tree, to join Jim and Bob’s exchange.

If Congress has the power to do that, Somin writes, then “the federal government would have the power to force citizens to engage in any activity that might conceivably affect commerce is some way.” Big-government liberals might be perfectly fine with that. But, Somin says, “this is precisely the kind of unconstrained power that the court has expressly rejected.”

At this point, Obamacare advocates usually interrupt with the emergency-room argument. It goes like this: “Well, people who don’t have insurance end up needing medical care, and hospitals are required by law to treat them, and that imposes costs on everybody else. What are you going to do — let hospitals throw patients into the street?”

This is a fine rhetorical device and an interesting ethical question, despite some factual weaknesses (not everybody requires medical care they can’t pay for out of pocket; millions of healthy young adults don’t need insurance). But it is not a constitutional argument. A hospital’s legal obligations don’t confer powers on Congress. Banks have lending obligations. That doesn’t mean Congress can force you to open a checking account.

On Thursday, a federal judge in Michigan tested another argument: The failure to buy insurance qualifies activity because “by choosing to forgo insurance plaintiffs are making an economic decision to try to pay for health care services later.” The same reasoning, however, would deny conscientious objectors the right to avoid military service, because by choosing to forgo participation in a war, they are forcing someone else to go in their place.

The amicus brief makes quick work of the notion that the penalty for not buying insurance is a tax. It’s not an income tax, it’s not an excise tax, so it must be a direct tax — which must be apportioned among the states — or, as seems patently obvious, it’s a penalty. But Congress can’t impose a penalty to enforce regulation of something it has no authority to regulate in the first place.
Finally, the mandate’s proponents say it’s authorized by the Necessary and Proper Clause, because it’s necessary to impose the requirement that insurance companies accept all comers regardless of pre-existing conditions. (Why? Because without the mandate, people wouldn’t buy insurance until they got sick.) This might be the strongest argument for the mandate. But it still faces a couple of problems.

First, the individual mandate tries to achieve something by taking an extremely broad step when a more narrowly tailored one would suffice. As Paul Starr wrote in the liberal American Prospect last year, Congress could address the adverse-selection problem by giving individuals “a right to opt out of the mandate if they signed a form agreeing that they could not opt in for the following five years . . . .For five years they would become ineligible for federal subsidies for health insurance and, if they did buy coverage, no insurer would have to cover a pre-existing condition of theirs.” Strictly speaking, the mandate is not necessary.

Second, if the court concludes that the mandate is justified because it is, after all, “rationally related” to insurancee regulation, then the justices would open the door (as they did in Kelo) to governmental sophistry: As long as legislators claim a new power being sought has some tenuous connection to an existing power, then the courts can never say no. This would allow lawmakers to assume an indefinite supremacy over persons and things, by stacking new powers one atop the other.

Liberals are in love with granting Washington indefinite supremacy right now, with a Democratic Congress and president at the helm. They might not like it so much should a Republican Congress start working hand-in-glove with a President Sarah Palin.

UPDATE: Good news. A “Federal Judge Allows Multi-State Suit Against Health Care Law to Proceed.”