Fighting to Preserve Liberty in America
photo by Kevin Dooley
One of the main reasons the current economic problem is so hard to solve and the battle lines are so starkly drawn is that there is strong disagreement on what the problem is and likewise the solutions. The mantra from the left is that the problem is Bush’s fault, there was too much deregulation under Bush, although no one points to any particular regulation repealed under Bush that caused the crisis, and that we don’t tax enough. Those on the right have a different view.
Texas governor Rick Perry announced on Saturday that he was running for president. In his teleprompter free speech he drew more distinctions between himself and Barack Obama.
Mommy! Johnny Boehner didn’t return my phone call! Waaaah! Seriously? Is this what a president says in a press briefing? Good Grief!
I received an e-mail from my congressman introducing his new “Big Oil Welfare Repeal Act”. It was one of those proposals that was either a political ploy or demonstrative of the potential damage that can be done by politicians who spent their lives closeted from the real world in either the ivory towers of academia or as life long members of the ruling class. I wrote a reply: Click to read more
It didn’t take long for President Barack Obama to get set back on his heels and hastily call a press conference to talk about his budget. Throughout his term we have seen his inexperience show as he jerks back and forth from position to position, unless it involves pushing his progressive agenda, where he is laser focused.
As we approach the mid-point of his term we, once again, hear President Obama with another scheme to create jobs. This time he really, really means it. For a mere $50 billion we can build roads, rails and runways and we can create an “infrastructure bank” to boot. I guess the government wants to get into the banking business now that they have swallowed up two thirds of the domestic auto companies and passed a law to take over health care. But, hey, who are you calling a socialist?
The infrastructure bank has supporters: Arnold Schwarzenegger, Ed Rendell the Democratic governor of Pennsylvania and Michal Bloomberg the Democratic, Republican, Independent mayor of New York, but they want it to support more projects such as water and clean energy projects. But here’s the really good news, according to the New York Times “They say such a bank would spur innovation by allowing a panel of experts to approve projects on merit, rather than having lawmakers simply steer transportation money back home.” We get a brand new panel of experts to tell us morons what is good for us!
How about this idea, get the Federal government out of the roads, rails and runways business. Unless the road is part of the Interstate highway system, and that means interstate, the feds should stay away from it. If a road within a city needs maintenance, that city and its citizens should pay for it, not taxpayers elsewhere in the country. That’s how the whole process got screwed up. You build my road, I’ll build your road and nobody will know who pays for what, until we find out we are $13 trillion in debt.
One of the good ideas Jimmy Carter had was to deregulate the airlines. Airlines became competitive and prices came down. The problem is that air travel consists of three components: the airlines, the airports and air traffic control. Complete the process, deregulate the airports and air traffic control. If you do that, airports can charge different prices for takeoff and landing slots. No more will we see thirty-two flights all scheduled to take off at 7:30 AM from one airport. Private investors would also have an incentive to build a state of the art air traffic control system.
By the way, what happened to all those “shovel ready” projects from the first stimulus plan? Did we actually finish building all the turtle crossings that this country needs?
On another front, Obama continues to tinker with the mortgage market rather than getting out of the way, letting housing prices find their bottom and then going from there. George Mason economist Anthony B. Sanders said in the New York Times, ““Housing needs to go back to reasonable levels. If we keep trying to stimulate the market, that’s the definition of insanity.” Even Democrats are piling on:
“The administration made a bet that a rising economy would solve the housing problem and now they are out of chips,” said Howard Glaser, a former Clinton administration housing official with close ties to policy makers in the administration. “They are deeply worried and don’t really know what to do.”
Who would have thought that a president and vice president with no executive experience prior to taking office would not know what to do once they got there? After all everyone knew that Obama was a really nice guy with an even temperament, what went wrong? Now we hear that Fannie Mae wants to back mortgages with nothing down. But not to worry, this time they are actually going to require the lenders to check to make sure the borrower has income. I feel better already.
Since this administration seems to like experts how about listening to these experts:
“We have had enough artificial support and need to let the free market do its thing,” said the housing analyst Ivy Zelman.
Michael L. Moskowitz, president of Equity Now, a direct mortgage lender that operates in New York and seven other states, also advocates letting the market fall. “Prices are still artificially high,” he said. “The government is discriminating against the renters who are able to buy at $200,000 but can’t at $250,000.”
It’s time for President Obama and his administration to get his boot off of the neck of the economy. Ours is the strongest most resilient economy in the world, if you set it free. All of the tinkering and the anti-business threats have pushed employers to the sidelines. The uncertainty over the economy has led businesses to take a wait and see attitude.
The rhetoric the Democrats have been trying to muster to save their skins is that “eight years of failed policies,” yada, yada, yada. The reality is that this recession started one year after Nancy Pelosi and Harry Reid took over Congress. This recession started in the last year of the Bush administration, not the first seven. This recession has lasted nearly twice as long and counting under Obama than it did under Bush, and it shows no sign of changing anytime soon. A recent poll in Ohio by Public Policy Polling asked respondents who they would prefer to see in the White House right now and the results were George W. Bush 50%, Barack Obama 42%; what does that tell you?
So, Mr. Obama, keeps your hands were we can see them and slowly step away from the economy.
Two disparate news items this weekend got me thinking. The main stream media is all abuzz with Chelsea Clinton’s wedding, even to the point of throwing the term royalty around. It is estimated that the wedding will cost $3-$5 million, although Sally Quinn of the Washington post puts the bill at closer to $1 million. The comparison was then made to the cost of Jenna Bush’s wedding, a mere $100,000. This became fodder for The Joy Behar Show. Comedian Judy Gold leaped at the opportunity to take a shot at Bush, “Yeah, well, if he could have found a way for us to pay for Jenna`s wedding, he would have done that, okay, he likes to spend other people`s money.” An interesting perspective on other people’s money that I will return to later.
The other news items was an article in The New York Times, by Bob Herbert titled “A Sin and a Shame,” lamenting that corporations are hording cash and not hiring people and it is all so unfair, in fact, sinful. This is while this government is spending huge amounts of money that someone will have to pay back, massive new programs like ObamaCare that we are still uncovering what that will cost, and enormous tax increases about to kick in on January 1 when the Bush tax cuts expire. Perhaps they are hording cash for a reason? Perhaps they are not hiring because they don’t know what any new employees will cost under these new programs, or for that matter what their existing employees are going to cost? Perhaps it is because the latest economic reports show GDP shrinking and if that continues why would you start hiring if your business is going to slow down with the rest of the economy?
We have two very divergent views of the economy today. One view is held by those who actually work in the private economy and the other view is held by those in the ivory towers of government, which brings me back to the weddings. I really don’t care what the Clintons or the Bushes spend on their daughter’s weddings. It’s their money. But perhaps it is instructive to look at where that money came from.
George Herbert Walker Bush, Jenna’s grandfather, was born into a successful family. His father was a banker and a Senator. But after getting out of the Army after WWII he went to Yale and upon graduation, moved away from that family and settled in Texas to start an oil company. He went into private business and put his own money at risk. What that means, to those who never took that chance, is you may be successful and make a lot of money, you may be successful and make a little money, you may fail and lose your money. Chances are greater that you will lose than win, but that is the American Dream. If you lose, you have to start over by trying to earn and save up what you lost to try again, if you have the guts and drive. Bush succeeded in forming Bush-Overby and later with Zapata Petroleum. He became President of Zapata for ten years and then Chairman for another two, before going into politics. By then he was a millionaire in his own right.
George Walker Bush, Jenna’s dad, attended public school in Midland, Texas, where his parents had settled. He went to private school after the family moved to Houston. He later attended Yale University and became the only president to get an MBA which he did, from Harvard. Like his father, he went into the oil business starting several independent oil exploration companies. He later bought a stake in the Texas Rangers baseball team for $800,000 and was instrumental in building the team’s attendance. He later sold his stake for $15 million. Then he went into politics.
The two Bushes know risk, know about taking chances and became millionaires on their own before going into politics. They also learned lessons about spending money and doing so prudently.
Bill Clinton went into politics almost immediately after getting his law degree. He was Attorney General and then Governor of Arkansas. As governor he had a governor’s mansion. He ran for president and upon winning traded in his governor’s mansion for the Executive Mansion, aka the White House. He had been on the government payroll and living in government provided housing almost his entire working life. The sweat of the people in who paid their taxes paid him. After leaving office, Mr. Clinton was able to write books about his experience and make speeches commanding six figures a pop. His wife did pretty much the same. They lived off the people and ended up very rich. They didn’t create a product or service, they didn’t create jobs, and they didn’t meet a payroll.
I can hear the screams from the left right now, “What do you mean he didn’t create a job or meet a payroll?” Try this test. If Bill Clinton’s opponent was elected rather than Bill Clinton, would there still be a government payroll and government jobs? If yes, Bill Clinton didn’t create them. If either of the Bushes didn’t create their companies would there be jobs at those companies or payrolls? No.
What about some other famous politicians who tell us what to do? Let’s look at Al Gore. Here is another individual that spent the bulk of his career in government. He was a member of Congress, a United States Senator, Vice President and presidential candidate. Today he is very rich. It is said he may become the first “green billionaire”. If he went into his current endeavors before a life in government, would the story be the same? Or is it because of his name, reputation, and connections that he made at the public trough, that he is wallowing in riches, and telling the rest of us to reduce our carbon footprint while his mansions consume ten times the energy of his neighbors?
Charlie Rangel spent most of his life in government. He rose through the ranks and now has a waterfront condominium in the Dominican Republic, writes the tax laws but does not observe them, and is a wealthy man. Conservatives don’t believe in rent control or rent stabilized apartments, but Charlie does. After all, how can poor and middle income people afford to live in places like Manhattan if greedy landlords have their way. So Charlie Rangel who makes $174,000 per year, plus his chairmanship pay, has not one, not two, not three, but four rent controlled apartments. Is he poor or middle class? No, he is the political class. He took three adjoining rent controlled apartments and had them joined together, while the fourth apartment served, illegally, as his campaign headquarters. What about the poor and blue collar workers who could live in Manhattan if three of your four rent controlled apartments weren’t being horded by you? Let them eat cake.
John Kerry is in the news for trying to avoid $500,000 in taxes on his new yacht. Here is another individual who spent his entire working life in government. He can tell the rest of us to pay more taxes while he garners favors spending our money. He is the richest man in the Senate but with prenuptial agreements with his wife he only lists personal assets of between $400,000 and $1.8 million and joint assets with his wife of $300,000 – $600,000. So how does he buy a $7 million yacht? I am not suggesting anything nefarious, it’s obvious his wife paid for it, but do you think he is in touch with someone trying to make a payroll in the private sector? You pay taxes; John Kerry has advisors to figure out how to avoid them.
So those evil corporations started by those evil men like George Herbert Walker Bush and George Walker Bush, know the value of a dollar. They know we are not out of the woods yet and so to protect the jobs that their companies still have they are not hiring but are building their rainy day funds. Perhaps Bob Herbert should ask why his employer is shedding jobs left and right. Perhaps this is his safe way of doing so, but on the other hand the New York Times is hardly hording cash. Its circulation is crashing because people like Bob Herbert are so out of touch with the rest of America; no one wants to read his rants any longer.
So perhaps Bill Clinton spends millions on Chelsea’s wedding because he didn’t learn the value of a dollar. He lived of the government for many years and then just held out a basket and it was miraculously filled with more money than he can count. George Bush spent $100,000 on a wedding because he knows how hard it is to earn a dollar. What we need is less of the political class telling us what to do, and then handing us the bill and more entrepreneurial Americans who risk their own money, watch it like hawks, create jobs and generate wealth that they then reinvest in America.
Best wishes to Chelsea and Marc.
The talking points have been established that it was eight years, eight, of failed Bush and/or Republican policies that got us into this mess and President Obama and the Democrats are working hard to get us out of it. Let’s take a closer look.
What blew up in 2008? It was the housing market. The underlying cause of the problem has Democrat/liberal/progressive fingerprints all over it going back to Franklin Roosevelt who created Fannie Mae. Add into that mix Lyndon Johnson privatizing Fannie Mae to hide it from the budget and creating HUD; Jimmy Carter creating the Community Reinvestment Act; Bill Clinton pushing for more home ownership among those who could least afford it, Andrew Cuomo as HUD Secretary pushing Fannie and Freddie to take on riskier mortgages; Barney Frank and Chris Dodd fighting against regulation before they were fighting for it (and where have we heard that formulation before?); and when housing prices run out of gas and the house of cards that the Democrats built collapses, it’s all Bush’s fault.
Let’s look at the timeline. When he took office, President Bush was handed a recession from Bill Clinton resulting from the dot.com bubble. In less than a year we had 9/11. In spite of that, Bush pushed through tax cuts and got the economy to grow through most of his presidency. The Democrats took control of Congress in January 2007 and in December 2007 the economy went into recession. One year later Barack Obama is elected President of the United States. Now, more than a year and a half after Obama is in office the economy looks like it is slipping into a double dip recession, and this is the Republican’s fault? Who has been spending like a drunken sailor? Who wasted almost $1 trillion on a stimulus plan that was so ineffective the Obama administration had to invent a new statistic, “jobs saved”, to hide its dismal performance. They add on ObamaCare, which no one in Congress read before voting on it and no one knows what is in it and so no small business is going to hire anyone until they know what it costs. How is that the Republican’s fault or Bush’s?
We are just a few months away from the tax cuts put in place by President Bush expiring. President Obama wants them to expire. This will place an additional massive burden on small businesses and just about everyone else and he wonders why aren’t companies hiring? The man came into office with no executive experience and the year and a half he has been in office he hasn’t seemed to pick up any. Could it be because he is surrounded by advisors who have little to no executive experience themselves?
To my fellow Americans I say, hang in there it is less than 100 days to vote the bums out. Perhaps not all of them, but at least we can bring in some adult supervision. It’s time to stop steamrolling the American people with the socialist programs and to let “We the People” take back our government.
Although it is getting very tiresome and it is losing it’s bite, Democrats still are desperately clinging to “we inherited eight years of Bush policies, yada, yada, yada.” Was it eight years? If so, how did he get re-elected in 2004? I will be among the first to say that Bush wandered off the conservative reservation with his spending, but Bush didn’t create Fannie Mae and Freddie Mac either.
What Have We Inherited?
Let’s take a look at everything else we have inherited. Why stop at Bush?
“Urged on by ACORN, congressional Democrats and the Clinton administration helped push tolerance for high-risk loans through every sector of the banking system — far beyond the sort of banks originally subject to the CRA. So it was the efforts of ACORN and its Democratic allies that first spread the subprime virus from the CRA to Fannie and Freddie and thence to the entire financial system. Soon, Democratic politicians and regulators actually began to take pride in lowered credit standards as a sign of ‘fairness’ — and the contagion spread.”
Gee, all of this we inherited from the pantheon of Democratic gods. It makes Bush sound like a piker.
Will We Never Learn?
When this country was founded Congress created three departments: Department of War, the Department of State, and the Department of the Treasury. That pretty much fits what the founders intended. A limited federal government that would deal with external issues and defend us from our enemies. There are now fifteen federal cabinet level agencies. Why is it that Democrats feel this need to create massive new bureaucracies? Why don’t they ever go away when they have achieved their mission? We are now facing crushing deficits brought about by decades of government growth brought about by the Democrats.
It’s time to stop blaming Bush. Mr. Obama, you wanted this job. You won this job. Now, do this job and stop bitching about what you inherited. If anyone has something to bitch about it is we Americans, because you and your fellow travelers have built this house of cards and you think the only solution is to build it bigger, faster. If the load is too heavy to carry, we don’t need vitamins (VAT tax) to get stronger, we need to lighten the load. We have to shrink this beast down to a manageable size, NOW.
On Tuesday night President Obama gave an uncharacteristically bland speech regarding his way forward in Afghanistan. In one sentence he said he was adding 30,000 troops while shortly thereafter he said he would be removing them. It’s enough to make one nostalgic for John Kerry’s “clarification” of how he voted for the war in Iraq before he voted against it. So our Waffler in Chief has given the enemy their battle plan: hunker down; keep a low profile; don’t back me into a corner, and beginning in July 2011, while we’re packing up you can be ramping up. Bush never committed to an end date certain for that very reason. They way you defeat the enemy is by making it clear that you will finish the job, no matter how long it takes.
It’s All Karzai’s Fault!
With this administration, it’s always somebody else’s fault. But put yourself in Karzai’s shoes. If you have the U.S. on one side, and the Taliban on the other with the U.S. packing up and the Taliban sharpening their knives, who are you going to cut a deal with? They guy who plans to be there for the next 20 years or the guy who plans to be there for the next 20 months? There is one way to deal with the bad guys who plan on being there for the next 20 years and that’s to make sure they spend those next 20 years six feet under.
We had similar challenges in Iraq, but once Bush ordered the surge and the bad guys knew we were going to finish the job, they started cutting deals of their own. Many came over to our side and helped end the violence in a number of provinces. Peace through strength. It works. Weakness fires up the enemy and emboldens him. You decide which is the better strategy.
