If the news hasn’t reached you yet, we are all on an express train heading over a cliff due to public unions and the ridiculously generous pay and benefit packages they have gotten from the taxpayer, and we never even got to sit at the bargaining table.  A report in the New York Times  yesterday reports that there are 8,074 employees of the Metropolitan Transportation Authority, the entity that runs the commuter railroads and subways in and around New York City, that made more than $100,000 per year.  This includes a conductor who retired in April that made $239,148 which was $4,000 more than the Chief Financial Officer made.

By the way, did I mention, that the MTA had a budget deficit of $400 million?  Did I mention that they went through a series of service cutbacks to try to close the gap?  Perhaps, I can suggest another place to look?  But there’s more.

Two train car repairmen and twelve police officers who guard the bridges and tunnels under the MTA’s control were among 50 employees that pulled in more than $200,000.  Mr. Thomas J. Redmond, the aforementioned conductor had a base salary of $67,772, overtime of $67,000 and he took in almost $100,000 in unused sick days and vacation time. 

A locomotive engineer earned $75,000 in base salary, with overtime of $52,000, but wait there’s more.  He also received $94,600 in penalty payments.  What are those, you might ask?  Union rules say that because the engineer worked in a storage yard, he gets paid extra if he is assigned to move a locomotive outside of the storage yard, for example to a nearby maintenance facility.  I don’t understand your pique.  Don’t you have a similar arrangement with your employer?  You mean you don’t get a penalty payment when you have to go to a meeting on another floor in your building? I am shocked!

But don’t feel sorry for the senior management.  The new president of the Long Island Railroad, part of the MTA, now earns $350,000 plus a $3,500 monthly housing allowance.  I guess $350,000 is not enough to get by on so we have to pay the guy’s mortgage too.

This is what the politicians give to the unions when they negotiate contracts with them.  The unions in turn, make sure those politicians get re-elected, through the unions electioneering efforts.  Does that sound like collusion to you?  New York State is broke, just like California but we will have to pay for all these sweetheart contracts that make the federal budget deficit look like chump change.

In their pledge of openness and transparency in government the House of Representatives takes some pride in putting the health care bill online for 72 hours before voting on it.  Sounds like a good step, no?  Well… that is until you to the math.  If the bill they are voting on is 2,500 pages long you would only have 1.7 minutes to read each page provided you did not eat, sleep, rest your eyes, use the restroom for three straight days!

We have Nancy Pelosi’s famous cry for support, “we have to pass the bill so that you can find out what is in it”.  Turn one-sixth of the economy over to the government, first, then find out what’s behind door number 1, door number 2, or door number 3.  If you remember from that game show, what was behind one of the doors was a real stinker.  The problem here is we got all three doors.

AT&T reports that they are writing off $1 billion to pay for compliance with the new health care bill.  Guess where they are going to get that $1 billion?  That’s right watch your phone bill.  You are going to be paying for this health care monster in places you never imagined.  Caterpillar announced they were writing off $100 million, John Deere $150 million, and AK Steel $31 million.  So look for more expensive roads, farm equipment (food), and more expensive cars.  This is from companies that have figured this out in less than a week.  It will take time for thousands of other companies to tally up the cost.

Henry Waxman to the Rescue

But don’t worry folks, Congressman Henry Waxman is riding to the rescue:

Representative Henry A. Waxman, Democrat of California and chairman of the Committee on Energy and Commerce, said he would hold a hearing next month to investigate the effects of the law on big companies. He asked the chief executives of Caterpillar, Deere & Company and Verizon for financial data to document the projected impact of the law on their companies, and he asked them to explain their accounting methods.

“The new law is designed to expand coverage and bring down costs,” Mr. Waxman said, adding that he would be concerned if it drove up costs.

I’m sorry to have to say this, but he has to be the dumbest man in the House of Representatives.  Members of the House are supposed to REPRESENT  the people.  The people have been screaming their opposition to this for months.  Obama dared his opposition to campaign on repealing his prized piece of…er, work.  Here’s news for you Mr. President, according to a Rasmussen poll 55% of Americans favor repealing this monstrosity.

But let me get back to Mr. Waxman, who is surprised that health care costs could actually increase.  Listen to the American people:

Most voters still believe cost is the biggest problem with health care in America today, but most also think passage of the health care plan proposed by President Obama and congressional Democrats will drive costs even higher.

A new Rasmussen Reports national telephone survey finds that 54% rate cost as the biggest problem, a finding that has been consistent for months.

If Mr. Waxman got his head out of the sand or wherever else he conveniently parks it, and out into the fresh air, he might have realized that he is among the very few who actually believe this was going to lower costs, because there is nothing in this bill that addresses costs.  It’s all about tweaking reimbursements to health care providers, which will accomplish nothing but drive doctors and other providers out of business, ration health, and expand government control.  Oh, but wait, that is the Democrats plan.

The Silver Lining

But there is a silver lining.  Communist dictator Fidel Castro loves it! 

Cuban revolutionary leader Fidel Castro on Thursday declared passage of American health care reform “a miracle” and a major victory for Obama’s presidency

Bill O’Reilly, do you still think President Obama is not  a socialist?

“We have to pass the bill so that you can find out what is in it” – Nancy Pelosi 

The White House claimed, incredibly, that most Americans support ObamaCare.

“If you take the last 12 independent polls, and you throw out four by Rasmussen, whose results the White House doesn’t like, and you throw out six others that show a wide margin of opposition, then you have two polls with results consistent with the Washington Post poll showing a fairly small margin of opposition to the Democrats’ national health care plan. And that is Benenson’s case. By the way, the headline of his article? “Most Americans want health care reform.”  – Byron York, National Examiner

Governor Ed Rendell of Pennsylvania, gushed on Fox News last night, about how ObamaCare was good for Pennsylvania.  Why?  Well, he said, today Pennsylvania is only reimbursed 50% for Medicare while under ObamaCare Pennsylvania will be reimbursed 90%.  Very cool.  Er, who’s picking up the tab for that extra 40%?  That question goes to the heart of the Liberal/Progressive movement which is basically you are too damn stupid to recognize a shell game when you see one.

Unless the plan is to have ObamaCare paid for with the profits from GM and Chrysler, the only thing the government does for a profit, it is all a giant shell game.  The giddy governor of Pennsylvania knows that this is a shell game and that extra 40% will either come out of Pennsylvanians federal tax pocket instead of their state tax pocket or it will be subsidized by citizens in other states through their taxes.  Oh wait, no, there is always those evil drug and medical device companies to tax.  But where do they get their money?  That’s right taxes are built into the price of their products, so expect drugs and medical devices to cost more.

The Evil Health Insurance Company Myth

Obama & Co. jumped all over a 39% premium increase by Anthem Blue Cross in California as Exhibit A justifying their takeover of the health care industry.  This is not going to be fixed with ObamaCare but only made worse.  An example is given by a doctor who says for the last seven years he has been reimbursed $50 for an office visit under Medicare.  In that time his expenses have risen 30%. (Quick check — if the good doctor gives his staff a 4% raise each year for 7 years that comes out, compounded, to about 30%).  Under ObamaCare they are proposing a 21% reduction in Medicare reimbursement, so the doctor will now get a $40 reimbursement for an office visit.  The doctor can do one of two things.  He can stop seeing Medicare patients, or he can charge his other patients more to make up the difference.  If he chooses the latter course of action, then private insurance companies, like Anthem, will have to pay for the increase.  How do they recover their costs?  That’s right by increasing premiums.

Just like you never hear statists blaming government polices of HUD, Fannie Mae, and Freddie Mac for the housing bubble that triggered the financial crisis and recession (it was all those greedy, evil bankers), you won’t hear them mention their policies regarding Medicare as triggering the premium increases.  It was all about greed.  So government will need to step in and make sure those greedy insurance companies cannot increase prices like they have.  So expenses rise, premiums are capped, insurance companies fold, and voila you have a public option, which becomes the only option.  Next to keep expenses from rising, health care will have to be rationed because there are no market mechanisms in ObamaCare to actually reduce costs.  No tort reform.  No elimination of 3rd party payers.  No true insurance that protects against catastrophic costs while you pay for the routine, like all other insurance.  Just government fiat.  Obama can no more order health care costs to decline than he can turn off gravity. 

News flash to people around the world living under socialized medicine who travel to the United States for critical care when they need it, that door will soon be closed.

Who Is Really Stupid?

Statists believe the average American is too stupid to make decisions, or should I say the right decisions, about their lives, health, safety, etc.  We need the really, really smart people in government to tell us what is good for us and follow their instructions.  Or…in November we can send them the message that they were really, really stupid to ignore what the American people were screaming at them, STOP!!!! If Jefferson, Madison, Washington, Adams, Hamilton, et al, thought Americans were smart enough to look out for their own best interests, who are Pelosi, Reid, Waxman, Boxer, Rangel, Schumer, Dodd, et al, to say otherwise?

You hear a lot of talk these days about the Senate being broken because nothing can get passed with a majority vote.  Everything has to get sixty votes to pass and that’s just un-American.  Is it? 

The House of Representatives

The Founding Fathers were brilliant in designing the government that has survived longer than any other, and it wasn’t an accident.  The House of Representatives was designed to be the branch of government closest to the people.  The members come from districts that are sized based on population.  It is also in the House of Representatives that all revenue bills (i.e., tax increases) must originate.  The Senate cannot create legislation to raise taxes. 

The Senate

 The Senate was designed with a different purpose in mind.  In the form of federalism that they created, the Senate was supposed to represent the individual states.  Originally Senators were appointed by the state legislatures and this continued until the ratification of the Seventeenth Amendment in 1913, which provided for the direct election of Senators by the people.  The Senate was designed to be a check on the tyranny of the majority.  In the House, populous states like New York, California, Texas and Florida, have a lot of representation.  To prevent a handful of states from pushing around everyone else, representation in the Senate is the same for Rhode Island as it is for California, two each.  In the House, California trumps Rhode Island.  In the Senate they do not.  Are you picking up the theme?

 The Dreaded Filibuster

Being able to filibuster in the Senate is another way of allowing cooler heads to prevail.  If legislation before the Senate cannot win over some reasonable number of Senators, then it’s probably not a very good idea for the country.

 As proof that things are more partisan today, pundits point to how the number of filibusters has greatly increased over time. 

 In the entire 19th century, including the struggle against slavery, fewer than two dozen filibusters were mounted. 

 It is reported that things really took off during the Clinton administration.  Hmm, what else was going on then… Hillary Care?  We have also seen the out of control growth of the federal government’s involvement in almost every aspect of our lives, such as, how much we can be paid, how much a bushel of wheat should cost, how schools are funded; none of which is in the Constitution as powers the federal government should have.  Those are all things that, according to the 10^th Amendment, are the purview of the states or the people.

 The Filibuster Fix

So if you don’t like the way the Senate is bogged down, instead of taking the brakes off the car, how about dumping the junk in the trunk?  The less minutia the federal government gets involved in (let’s start with health care), the less reason, reasonable Senators will have to filibuster.

When will our President come to the realization that the government does not have any money save that which is provided by its citizens?  If he understood that, he wouldn’t have said this:

“Just as it would be a terrible mistake to borrow against our children’s future to pay our way today, it would be equally wrong to neglect their future by failing to invest in areas that will determine our economic success in this new century,” Mr. Obama said at the White House.

Let me posit a translation: we shouldn’t borrow against our children’s future, so we should borrow against our children’s future.  And let me add another pet peeve and that is how the statists have redefined the word “invest”.  What they really mean is spend, but invest sounds so much more grown up.  However, most intelligent people understand invest to mean when you put your money into something with the belief you will get all your money back plus a premium.  You don’t invest in the stock market with the idea you will never see your money again and will subsequently put more money into it next year.  You invest in a house with the idea that you will sell it later for more money.  You don’t invest in a house if you expect it to go down in value.  But our elected representatives would have you believe that pouring money down a rat hole is an investment.

Immature and Irresponsible

Like a child caught standing over his mother’s prized china lying shattered on the floor, President Obama wants us to believe it’s not his fault, no, we are going to have trillion dollar plus deficits for the next ten years because of Bush and the Republicans.  He is one year into his presidency.  This is his budget, not Bush’s.  If he can’t handle the job he should resign and turn it over to, er, Biden?  Check that.  Perhaps he can just go watch television in the White House for the next three years and leave the rest of us alone.  Doing nothing would cause less damage than what he has planned.  He jacked up spending 24% and then “courageously” instituted a freeze on that spending for three years.  Think about it.  If I gave you a 24% raise on Monday and then came back on Friday and said, “Gee, I’m really sorry to have to do this, but times are really tough.  I’m going to have to freeze your new salary for the next three years.  Can you ever forgive me?”  Could you not burst out laughing?

We’re Going to Make Some Tough Decisions…Next Year

We are in a fiscal crisis, but don’t think for a moment you are going to see any tough decisions in an election year, particularly when so many Democrats are in danger of having to find jobs in the real world.  So this year is tough talk.  Next year we get busy!

Democrats or Republicans or maybe the Tea Party movement is going to have to act, sooner rather than later.  Here is how the federal government breaks down:

• Medicare and Medicaid — 33%
• Social Security — 21%
• Interest on the Debt — 8%
• Defense — 20%
• Non-Defense Discretionary — 18%

The first three items continue to grow with no signs of slowing and interest will really take off when the Fed stops the easy money program.  Defense can shrink as Iraq and Afghanistan stabilize, but not a lot as this is still job number one for the federal government.  So do you see the problem?  You can thank Democratic President Lyndon Baines Johnson for the first ticking time bomb above.  You can thank Democratic President Franklin Delano Roosevelt for the second ticking time bomb.  You can now thank President Barack Obama for what is becoming the third ticking time bomb and that is without his Health Care, and Cap and Trade.

So how is President Obama going to “solve” this problem?  By tinkering with the last item, Non-Defense Discretionary spending.  But don’t worry, he will also tax those evil rich and make sure they pay their fair share.  But before he goes too far down that path I have a suggestion for him:

1. Listen closely to the Beatles song “Taxman“
2. Ask yourself why the members of the band moved to the United States?

High tax states like New York and California are finding that a significant number of their wealthy citizenry are moving to lower tax states, exacerbating those states’ fiscal problems.  If you look at the percentage of the population that pays the lion’s share of the taxes you will quickly see that if a relatively small percentage of the population, who can afford to live anywhere, actually decide to leave the United States of Tax the Rich, the resulting fiscal problem will be very, very severe. Obama can only poke his tax stick in that cage so long before he gets a nasty reaction.

We’re All Standing On the Third Rail

Social Security has been called the third rail of politics, but the reality is that we are all standing on the third rail trying to keep our balance and if anyone slips and touches the ground, we’re all fried.  We have to suck up the courage to address Social Security, Medicare, and Medicaid.  If we can’t slow the growth of these programs so that they take a smaller amount of the budget pie each year, we are toast.  None of those programs is in the Constitution, but the liberals/progressives created them with empty promises of benefits without costs.  This should have been the first clue:

“Ida May Fuller worked for three years under the Social Security program. The accumulated taxes on her salary during those three years was a total of $24.75. Her initial monthly check was $22.54. During her lifetime she collected a total of $22,888.92 in Social Security benefits.”

Ida May Fuller was the first recipient of monthly S.S. checks when she retired in 1940. She lived to be 100.

She almost got paid back in full with her first check. She got 926 times more than what she paid in. That’s a 92,600% return on “investment.” Not bad, huh?

She got back almost everything she paid in with her first check.  Instead of ringing alarm bells all over the country, politicians patted themselves on the back for the great system they created.  We sent Bernie Madoff to jail, why should Congress be exempt?  What Bernie Madoff did was child’s play in comparison.  Where he fell short was that he couldn’t force people to participate through payroll taxes, and he couldn’t print money.  So why is what he did criminal and what Congress is doing not?  He had to get his participants to voluntarily turn over their money.  He promised returns of 40% per year.  Ida may got 92,600% return on her investment.

Burn the Ships

There is the story of a general who landed on a beach to face an formidable enemy.  He ordered that the ships that brought them there be burned.  By doing so, he knew his men would fight ferociously because there was no escape, either they fought to win or they died.  Perhaps we should do the same with Congress and President Obama.  Fix Social Security and Medicare/Medicaid or you join Bernie Madoff in Cell Block “C”, for running a massive Ponzi scheme.  What has kept Congress from fixing this in the past is the fear of not getting reelected.  Let’s raise the stakes so that not getting reelected would pale in comparison to incarceration.  It’s time our elected officials started paying attention to the people and not their perks.  The disaster train is going downhill and picking up speed, headed for a cliff.  It’s time ALL politicians put the country first and fixed this problem that, after all, they created.  It’s fun to give out the goodies, but this is a crisis that cannot be shunned.  It must be dealt with head on.

The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.  – Tenth Amendment of the Constitution of the United States of America

 The Tenth Amendment

The Tenth Amendment of the Constitution is an interesting piece of work.  The way the Constitution is written is to explicitly state what the national government could do, and thereby exclude it from doing everything else.  When some of the Founding Fathers advocated a Bill of Rights the federalists strongly objected.  Why?  First, they thought it was redundant.  If, for example, the Constitution did not say the national government could regulate speech then having a First Amendment guaranteeing the Freedom of Speech made no sense.  The national government was only permitted to do precisely what the Constitution said it could do. 

 The second objection concerned having the opposite intent of the original writing of the Constitution.  You see, if the constitution has a provision that says what the national government cannot do (First Amendment barring free speech for example) it implies that the national government can do anything else that is not prohibited, which is exactly what the federalists did not want the Constitution to say.  It wanted to specifically enumerate the powers granted to the national government and no more.  So they compromised by adding the Tenth Amendment, which spelled out that distinction.  To quote Hamilton in Federalist 84:

 “Why, for instance should it be said that the liberty of the press should not be restrained, when no power is given by which restrictions may be imposed?”

The Federal Government’s Runaway Growth 

The federal government has expanded enormously particularly with FDR and the New Deal.  The Supreme Court has paid scant attention to the Tenth Amendment in curbing that expansion.  Perhaps it is time they gave it a closer look and more weight in their decisions.

 Below is what the Constitution says Congress has the Power to do.

 Article I. Section 8. The Congress shall have Power To:

• Lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defense and general Welfare of the United States;
• To Borrow Money on the credit of the United States;
• To regulate Commerce with foreign Nations, and among the several states, and with the Indian tribes;
• To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;
• To coin Money, regulate the value thereof, and of foreign Coin, and fix the Standard of Weights and Measures;
• To provide for the Punishment of counterfeiting the Securities and current Coin of the United States;
• To establish Post Offices and post Roads;
• To promote the Progress of Science and useful Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries;
• To constitute Tribunals inferior to the supreme Court;
• To define and punish Piracies and Felonies committed on the high seas, and Offenses against the Law of Nations;
• To declare War, grant Letters of Marque and reprisal, and make Rules concerning Captures on Land and Water;
• To raise and support Armies, but no Appropriation of Money to that Use shall be for a longer Term than two years;
• To provide and maintain a Navy;
• To make Rules for the Government and Regulation of the land and naval Forces;
• To provide for calling forth the Militia to execute the Laws of the Union, suppress Insurrection and repel Invasions;
• To provide for organizing, arming, and disciplining, the Militia, and for governing such Part of them as may be employed in the Service of the United States, reserving to the States respectively, the Apportionment of the Officers, and the Authority of training the Militia according to the discipline prescribed by Congress;
• To exercise exclusive Legislation in all Cases whatsoever, over such District (not exceeding ten Miles square) as may, by Cession of particular States, and the Acceptance of Congress, become the Seat of the Government of the United States, and to exercise like Authority over all Places purchased by Consent of the Legislature of the State in which the Same shall be, for the Erection of Forts, Magazines, Arsenals, dock-Yards and other needful Buildings; — And
• To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.

 Does anybody see anything there about minimum wages?  miles per gallon?  housing subsidies?  urban development? education? energy?  James Madison summed it up thus in Federalist 45:

“The powers delegated by the proposed Constitution to the Federal Government are few and defined.  Those which are to remain in the State Governments are numerous and indefinite.  The former will be exercised principally on external objects, as war, peace negotiations, and foreign commerce;….The powers reserved to the several states will extend to all objects, which, in the ordinary course of affairs, concern the lives, liberties and properties of the people, and the internal order, improvement, and prosperity of the state.”

To see how far we have come from Madison’s and the other Founding Fathers views can be seen in the New Deal era court case Wickard v. Filburn(1942).  Roscoe Filburn was a farmer during the Great Depression who was growing wheat to feed his chickens.  The Federal Government had imposed limits on how much wheat a farmer could grow based on acreage in order to prop up wheat prices.  The amount of wheat that Filburn was growing exceeded this number, however, Filburn intended to use the wheat entirely on his own farm.  Not only was the wheat not going to leave his home state, it was not going to leave his farm!  But the Supreme Court ruled that by growing more wheat than allowed, Filburn would not have to buy additional feed in the open market and by not doing so the lack of his consumption of wheat on the market would adversely affect the price of wheat, therefore he was violating the Federally imposed limits.  Now if that doesn’t set off Tenth Amendment alarm bells, I don’t know what could.

Federal Government Sprawl

Here are the cabinet level departments of the Federal Government.  Those in bold seem, in my opinion, to be consistent with the enumerated powers above.  Those in italics seem, again in my opinion, to be a national government overstepping its Constitutional bounds.  It is not that each and any of these things should not be done at all, but according to the Tenth Amendment should be at the discretion of the states or local government.

•  Department of Agriculture
• Department of Commerce
• Department of Defense
• Department of Education
• Department of Energy
• Department of Health and Human Services
• Department of Homeland Security (Incorporate in Department of Defense) 
• Department of Housing and Urban Development
• Department of Justice
• Department of Labor
• Department of State
• Department of the Interior
• Department of the Treasury
• Department of Transportation
• Department of Veteran Affairs (Incorporate into Department of Defense)

 Federalism

 One of the brilliant ideas of federalism is the ability to vote in two ways.  One, is at the ballot box and the other is with your feet.  If my state puts forth a bad idea and the majority of the citizens of my state agree with the bad idea, I have the freedom to move to another state.  However, if we keep moving all these bad ideas up to the national level, my right to vote with my feet is taken away.  If states like California and New York choose to follow polices that lead to their bankruptcy, so be it, but let’s not force those policies on Texas and Florida or force the citizens of those states to pay for the mistakes of Californians and New Yorkers.

Since George Washington, who had four cabinet positions, we have added thirteen new cabinet departments and eliminated two and the ones eliminated did not go away, they simply became part of other government entities (e.g., Navy into Defense; Post Office into Postal Service).  In other words our government is telling us that they have not solved a single problem for which one of these agencies were created since 1789, otherwise why wouldn’t that cabinet department be shut down, after ceremoniously giving all the key players well deserved gold watches?  But Government encroachment marches on with the Obama Administration poised to devour one-sixth of the U.S. Economy into the Department of Health and Human Services.  They tell us they know how to solve that problem.  With their track record do you believe them?  Perhaps it’s time to dust off the Tenth Amendment, and start putting a scalpel to the federal government rather than tying a bib around its bloated neck.

Let’s look to 2010 as the year we start taking back our government.  Polls show how far out of touch our elected leaders are from the views of their constituents.  It’s time to retire them from office.  Let’s keep up the hard work and countdown to November 2010.

The New York Times had some, what was to me, shocking news today.  The article said that there was now consensus that the Obama stimulus plan was working.  Is this the same kind of consensus that man-made global warming was settled science, despite the glaring evidence that carbon dioxide emissions continue to grow while the globe stopped warming ten years ago?  This is also close on the heels of breaking stories of extraordinary misinformation if not outright deceit on how the $787 billion is being spent.

Smoke and Mirrors

Early on in the article we have this gem:

“The legislation, a variety of economists say, is helping an economy in free fall a year ago to grow again and shed fewer jobs than it otherwise would. Mr. Obama’s promise to “save or create” about 3.5 million jobs by the end of 2010 is roughly on track, though far more jobs are being saved than created, especially among states and cities using their money to avoid cutting teachers, police officers and other workers.”

There is no mechanism that exists to measure a job saved. None.  So how do they do it?  It goes something like this:

“Here, Mr. Stimulus Funds applicant, I have this check for you for $642,000.  No can you tell me, if I give this to you, how many jobs would you create or save?”

“Create? Er, none.”

“Hmmm,” the bureaucrat mutters, staring down at the check in his hand, “what about jobs you would save?  You know, if I don’t give you this nice, rather large check, how many of your people would you be forced to lay off?”

“Oh, I get it,” the potential recipient says with a wink and a smile, “probably all of them!”

The bureaucrat scribbles down a number, and hands over the check, walking away shaking his head.

That’s about how it’s done.  The government surveys the people getting the money and asks them what would have happened if they didn’t get the stimulus.  And what would you expect them to say?  Keep the check?

Revenue Starved States

What a concept, “Revenue Starved States.”  The article complains that not enough money was provided to “Revenue Starved States.” Does he mean states like California and New York?  I believe the correct term is states where spending is out of control.  It means states where taxes are so high that people are moving out in droves, and among them the “wealthy” people they love to tax to the eyeballs, meaning a dramatically shrinking revenue base.  After all, if one of the wealthiest people in the state, who is part of the group that pays 70% of the taxes, moves out of the state or (out of the country when it gets bad enough), that means a lot of people are going to see their taxes raised to make up for it.  So the statists seem to think a stimulus package that keeps these bloated bureaucracies fat, dumb and happy is the way to go, until when exactly?

The Multiplier Fallacy

The other great fraud being foisted on us is the multiplier effect, where for each dollar of stimulus money spent more than a dollar of economic activity results:

That sort of impact is what makes federal aid to state governments rank high in economists’ reckoning of the stimulus value of various proposals. Every dollar of additional infrastructure spending means $1.57 in economic activity, according to Moody’s, and general aid to states carries a $1.41 “bang” for each federal buck.

Even more effective are increases for food stamps ($1.74) and unemployment checks ($1.61), because recipients quickly spend their benefits on goods and services.

Okay, then how is this for a solution.  Let’s spend $10 trillion on infrastructure, food stamps and unemployment checks, since they will result in $15 trillion or so in economic activity, because of the multiplier, right?  For that matter, let’s have the government spend $100 trillion and we’ll really be rocking.

Where’s the So Called Consensus

From what I read in the article, there was only one economist that could be called a conservative, Martin Feldstein, that they were willing or able to quote, and this was his take on the stimulus.

While some conservatives remain as skeptical as ever that big increases in government spending give the economy a jolt that is worth the cost, Martin Feldstein, a conservative Harvard economist who served in the Reagan administration, said the problem with the package was that some of its tax cuts and spending programs were of a variety that did little to spur the economy.

“There should have been more direct federal spending that would have added to aggregate demand,” he said. “Temporary tax cuts and one-time transfers to seniors were largely saved and didn’t stimulate spending.”

That’s it?  That’s the consensus?  It seems to me that he is pointing out what was wrong with the package rather than what was right.  He was in the Reagan administration and he knows what works: permanent cuts in marginal tax rates. Those dreaded tax cuts for the “rich.”  The thing is that when the people above the subsistence level get to keep more of what they earn, yes it does belong to them and not to the government, they tend to invest it, which means the provide capital to businesses that grow and create jobs.  Yes, capitalism.  What the stimulus does is take money away from these people, or borrows it and steals it from future generations, and gives that money, as in the example above, to highway projects, food stamps and unemployment checks.  The first of these may create jobs until the road project is completed, but the latter two only increase the dependency of those recipients on the government.  So how exactly does the stimulus plan that puts money into a highway project and unemployment benefits, help a banker who got laid off?  How does it help the unemployed executive from United Technologies?  It doesn’t.  It’s like a drug fix.  You may feel good for a while, but then it wears off and you need another fix.

The Genius of Government

You would think that with all the examples of government planning lying on the waste heap of history, the statists will finally catch on that they can’t successfully pick the winners and losers in an economy.  Government has to get out of the way and let the market work.

Government must be drastically cut down to size.  Think of the popular TV show “The Biggest Loser.” Picture the governments of the United States, California, New York, New Jersey, Rhode Island, Michigan, Nevada, for starters, as contestants.  Let’s see who can lose the most weight.  Ready? Go.

Douglas “Wrong Way” Corrigan was an aviator in the 1930s.  In 1938 he mistakenly flew from New York to Ireland when he was supposed to fly from New York to California, because he claims he misread his compass.  It later turned out that he really intended to fly to Ireland but couldn’t get permission.

What’s Hillary’s excuse?  As the Obama Administration has called the removal of Honduran President Manuel Zalaya a coup d’etat, more attention is being focused on what the law in Honduras really says.  The Congressional Research Service looked into it and had this to say:

“The Supreme Court of Honduras has constitutional and statutory authority to hear cases against the President of the Republic and many other high officers of the State, to adjudicate and enforce judgments, and to request the assistance of the public forces to enforce its rulings.”

—Congressional Research Service, August 2009

So why is Hillary Clinton now attacking the Honduran Supreme Court by pulling the visas of all fifteen members of the court?  The U.S. sided with Hugo Chavez and Costa Rica to reach a “negotiated” settlement that would put Zalaya back in the presidency.  Honduras said, sorry, that would violate our constitution.  He broke the law, we dealt with it according to our constitution, and that’s that.

Mary Anastasia O’Grady writes in the Wall Street Journal:

The upshot is that the U.S. is trying to force Honduras to violate its own constitution and is also using its international political heft to try to interfere with the country’s independent judiciary.

Hondurans are worried about what this pressure is doing to their country. Mr. Zelaya’s violent supporters are emboldened by the U.S. position. They deface some homes and shops with graffiti and throw stones and home-made bombs into others, and whenever the police try to stop them, they howl about their “human rights.”

When will the apology tour end and we start standing up for liberty and democracy?  Is it more important that Hillary have an accomplishment she can brag about than following  the rule of law?  This administration has so much, so backwards it is hard to keep track of it.  They focus all their time and energy doing things they are not constitutionally authorized to do (health care, taking over car companies and banks, funding ACORN), and ignoring their fundamental constitutional duties of foreign policy and national defense.  Let’s hope some pressure can be brought to bear on the Obama Administration to back off before Chavez puts a puppet in place.

In a previous post I described how I wrote to my Congressman on a particular topic.  He responded with a letter I thought was so flawed with logic that I felt compelled to respond, even as I believed it would have the equivalent effect of arguing with my dog.  He would politely listen,  cock his head, and then go about his business, but I wrote it anyway.  What I got in response surprised me.  I got the exact same letter as the first time around with only the date changed.

Fool Me Once…

With all the town halls and people finally beginning to find their voice, I tried to communicate with my Representative again.  This time I sent him a short e-mail with two very simple questions:

1. On the Stimulus, Cap and Trade, and Health Care, did you read these bills in their entirety before voting on them?
2. Can you help me by directing me to that part of the Constitution that authorizes the federal government to get involved with health care.

An honest response would be along the lines of:

1. Yes, Yes, No
2. Article I, Section…

But instead a got a long e-mail telling me that health care was complex, that he wrote a letter to Nancy Pelosi requesting a delay in voting, and basically all the statist talking points.  My two simple questions were simply ignored.

Town Hall Outrage

The outrage being demonstrated in the town halls is not the result of right-wing organizers.  It is the result of being treated by our elected Representatives as children who should be seen but not heard.  They schedule a town hall meeting, read an opening statement of their carefully crafted talking points, and then take questions that they answer by rephrasing the question so that a reply can be given from the talking points.  At the appointed time, they thank the crowd for their input, which they will ignore, wave to the crowd and hurry away from the unwashed masses to marble halls of Congress, their $169,000 salary, their staffs, etc.

The people will not stand for this anymore.  They see these power hungry, career politicians, not representing the people but lecturing them.  Americans have had enough, and they’re not going to take it anymore.

Here is Congressman Tim Bishop’s Town Hall experience, in two parts.

Tim Bishop\’s Town Hall Meeting – Part 1

Tim Bishop\’s Town Hall – Part 2

Can anyone offer us a deal to give us cash if replace our Congressional Clunkers?  How about the health insurance companies?  They’d probably kick in, since they are Congress’ new whipping boy.  Oil companies, coal companies?  They get bashed every time Congress screws up and bans nuclear power, offshore drilling, ANWR, and coal as the price of oil climbs.  Banks who didn’t take TARP money?  Well Congress wants to set their salaries now.

Congressional Mileage

How much liberty per dollar are we getting for the money guzzling Congressmen and Senators who pull down $169,300 per year (more for committee chairs, and Speaker Pelosi who weighs in at $217,400)?  And this doesn’t begin to count their expense budgets, gold plated health care, etc.  I’m sure we could get much better mileage from a smaller government and a Congress that only meets half a year.  I’m willing to bet that the longer Congress stays in session the more trouble they get us into, while consolidating their power and feathering their own nests.

Here’s the Plan

Let’s set up a fund.  We’ll let Goldman Sachs run it, as they seem to know how to turn a buck. Anyone can contribute to the fund, no limits. For every Congressman who voted for the Stimulus, Cap and Trade, and the Health Care disaster and is run out of office, the fund will pay out a percentage of the fund to everyone who registered and voted.  The percentage will be calculated as the percentage of these clunkers who are retired out of Congress.

Think about it.  If you are a voter who really, really believes that the Stimulus, Cap and Trade, and the government takeover of our health care system is a good thing, you will vote to re-elect the members of Congress who voted the same way.  However if you don’t, then perhaps you need a little personal stimulus to cross party lines, or set aside ideology, and vote the bums out.  It might even help improve voter turnout.  And why not?  If ACORN can get illegal aliens and dead people to vote for their candidates, we need a way to fight back.

What do you think?