photo by cliff1066

Just because Democrats are statically stuck on stupid, why do they think everyone else is? What I am referring to is static analysis of changes to the tax code. Democrats always want to have any potential changes statically scored. In other words if Democrats raise rates 10%, naturally, the government will get 10% more revenue. If on the other hand you cut tax rates 10%, a very bad thing, tax revenues will fall 10%. The problem is that they have been proved wrong every time. In other words, Democrats believe that if they raise tax rates you will be too stupid to change your behavior in response.

The evidence is in that when capital gains tax rates were cut, revenues poured into the Treasury. When the Bush tax cuts went into effect in 2003, by 2007 the Treasury took in more revenue than at any time in history.

Federal Government Revenue over Time

So why, do we have massive deficits. There are two reasons and neither of them have to do with the Bush tax cuts. The first is the housing bubble bursting. This put us into a recession and when economic activity slows, tax revenues fall as well. As the economy recovers, tax revenues will increase. This bedrock principle is what the Democrats deny exists. The second reason is spending. We are spending an enormous amount of money. If you want to see the deficits shrink, stop spending, and stop attacking businesses.

The Latest Dustup

The much ballyhooed debt committee that is supposed to come up with their recommendations by Thanksgiving has reached another impasse. The Republicans put $500 in additional revenues by locking in lower tax rates, and closing $250 billion worth of loopholes. The resulting growth in the economy would add another $200 billion and another $40 billion would come by adjusting the tax brackets for inflation. I thought the Democrats were agreeing with Herman Cain when they said, “Nein, nein, nein!” until I realized they were speaking German. To the Democrats lowering the tax rates has no effect on the economy, so the $250 billion in loophole closures will only generate $250 billion.

So as the clock ticks down, you can expect the committee to remain stuck on stupid, and our military to take a big hit as mandatory, pre-negotiated cuts kick in. Isn’t it gratifying to pay a bunch of people $174,000 a piece to have them accomplish absolutely nothing? Isn’t that how it is where you work?

That’s my opinion; I’d like to know yours. Please comment below.

Maybe it’s just me. Perhaps not having lived in the rarefied air of academia or politics, I have a more roll up the sleeves, get some dirt under the fingernails approach to what a job entails. Today it seems that politicians like to get in front of the cameras, fire off a sound bite and then go do something more interesting.

President Obama puts our troops in harm’s way and then jets off to Brazil to be photographed doing the samba, and saying he wants to be first in line to buy more foreign oil, this time from Brazil. Didn’t he just say that he wants to cut our imports of foreign oil by one third? Shouldn’t we be drilling here rather than lining up new suppliers?

We have a myriad of problems that include spending, the crisis in the Middle East, North Korea, unemployment, the budget, and yet the president has found time to play sixty-one rounds of golf, at last count. Who’s minding the store?

Newly elected Delaware Senator Chris Coons got on television to lament that he is holding a job fair at his Delaware office and if the government shuts down Friday night, he won’t have any staffers to run the job fair. This is very, very bad. Er, excuse me, senator but your job is to pass a budget not to be the local employment office. Cancel the job fair, as I am sure there are plenty of government and private agencies that handle that, and get back to work doing what you were elected to do.

In a similar vein, Congressman Tim Bishop is scheduled to kick off his 2012 reelection campaign this Sunday so that he can plan on continuing to pick up his $174,000 salary for failing to pass a budget. I am sure his quick retort will be that he is in the minority and therefore powerless to move those stubborn Republicans. But it was his failure a few short months ago when he and Nancy Pelosi were in the majority to pass a budget resolution for the first time since budget resolutions became standard practice. They also failed to pass the appropriation bills to fund the government until the end of the fiscal year in October.

A cynic might look at it as a designed power play. “Look, we’re going to get clobbered in 2010, so let’s not vote on a budget or spending bills and it will be a twofer. One, we won’t be held accountable for voting for higher spending and that may save a couple of seats in November 2010; two, it will dump this mess in the Republicans lap and if we hold the Senate we can force a government shutdown and blame them like we did in 1995. Then we can coast back into power in 2012.” Of course, you would have to be a cynic to believe that, wouldn’t you? Wouldn’t you?

In the midst of the current budget crisis we hear an announcement by Harry Reid that their staffs will be working through the night, and the politicians will be back in front of the microphones tomorrow.

I worked a number of years in Information Technology, specifically in the credit card business. I can remember sitting at my desk on New Year’s Eve 1999. Perhaps the biggest New Year’s celebration of a lifetime and I was at my desk. Why? Remember the Year 2000 software bug? Well, we had to be ready to respond instantly if anying we worked endless hours to prevent slipped through. Nothing did and around 3AM or so, we started to head home. On the day after Thanksgiving, known as Black Friday, in the retail world it was “all hands on deck” to make sure that things worked and if there were any hiccups, we were on top of them immediately. Although I was a VP, I was there on the floor with the first line folks. The same went for any major software releases. If a critical decision had to be made we were there to make them. That’s the way it was done. We didn’t make pronouncements and go play golf. We were there onsite. But that is in the private sector, where things like profits and losses matter, accountability is real, and lifetime employment is unheard of. We could be fired any day, not just one day every two, four or six years.

We have a right to that accountability from our political leaders. Instead of raising funds for the next run for office, these politicians should have their salary cut off and be dipping into their savings to pay for the skyrocketing gasoline prices that are a result of not exploring for energy here, and instead destroying the dollar. Instead of doing their jobs, those on the left are ramping up their slime machines to give every reason under the sun why they can’t possibly cut any spending. There was some Congressman on the news talking about how wonderfully efficient Medicare is and how those evil Republicans want to put that in the hands of private insurers, horrors! It is common knowledge that between $60 – $100 billion is STOLEN from Medicare every year. How is that for efficiency? As I point out in my book Liberty’s Lifeline Steve Kroft of Sixty Minutes reported that stealing from Medicare pushed aside cocaine as the major criminal enterprise in South Florida.

2012 is coming and everyone one of these hand wringing, overpaid, do nothing, politicians should be bounced out on the street, if they don’t want to step up and transform Washington in to an efficient and accountable government.

That’s my opinion, I’d like to know yours. Please comment below.

The baseball season has ended.  The San Francisco Giants are the world champions for the first time since 1954 when they were the New York Giants.  The stadiums are empty and the spring training fields have not yet gotten busy.  But, fear not, the free agent season is heating up.

I’ve got a hot prospect for you.  His batting average is 0.004, but he does have a home run to his credit.  Interested?  Fantasy league or real, any attempt to sell this turkey, even during Thanksgiving would be a bust.  But when it comes to the trial of Islamic terrorist Ahmed Ghailani those are the stats turned in by Eric Holder. 

Ghailani was charged with 285 counts and the jury convicted him on one of them.  So for a batting average that is 1 for 285 or 0.004.  Holder and his backers are bragging that Ghailani is going to be sentenced to 20 years to life; the home run.  So how do you feel about having this player on your team?  Yes, his is capable of hitting a home run once every 285 times at bat, but how close was he to striking out?  Was the home run skill or dumb luck?  If you were a baseball team’s general manager, would to take a chance on him?

Such are the problems of trying terrorists in civilian court with the full rights of American citizens.  When asked if the information that could have resulted in more convictions was a result of interrogation techniques that may be considered coerced, the Holder team told the judge to assume so.  Out the door went all that evidence.

In a civilian court any number of national security issues are at risk.  A prosecutor has a choice to make, go for the conviction and reveal information that could be priceless to Osama bin Laden and his cohorts, or keep it under wraps and let the perp walk.

In a military tribunal, there is more leeway on the evidence and greater concern over protecting national security secrets.  It is well past time to stop the nonsense of trying these people in civilian court and try them in military tribunals instead.

There is one more thorny issue.  If the mighty Eric had struck out, after telling the American people that failure to gain convictions was not an option, they administration is saying they would have put Ghailani back in Guantanamo or some similar facility and held him as a prisoner of war until the end of hostilities.  If that face saving device is on the table, what is the whole point of even considering civilian trials?  Another head scratching moment brought to you by the most inexperienced administration in the history of the Republic.

Daniel Henninger wrote in the Wall Street Journal:

Senate Majority Leader Harry Reid tells of congratulating freshman Sen. Obama on a phenomenal speech. Without a hint of conceit, Mr. Obama replied, “Harry, I have a gift.”

In the article he also describes this observation:

Harvard Law Prof. Charles Ogletree told how Mr. Obama spoke on one contentious issue at the law school, and each side thought he was endorsing their view. Mr. Ogletree said: “Everyone was nodding, Oh, he agrees with me.”

That’s essentially how he got elected.  With a heaping helping hand from the popular media, many people saw Obama as a blank screen upon which they could project their own views and see those as Obama’s own.  He’s our man!  He listens.  He cares deeply.  For a politician it is a phenomenal gift.  For a legislator it is an extremely valuable gift.  For an executive it is poison.

Pulling the Trigger

As a politician or a legislator you are in the role of persuader; somebody else makes the decision to vote for you or vote with you, respectively.  As an executive you are in the role of the decider.  You must make a decision and every decision, especially the tough ones are going to make a good many people unhappy.  Perhaps that explains why, in the Illinois Senate, Obama voted “Present” so many times.  Voting “Present” rather than “Yea” or “Nay” allowed him to hold that special place where everyone felt he agreed with them.  Too many decisions one way or another would have tarnished “the gift”.  So why is “the gift” poison for an executive?  If you don’t have “the gift” and you make a decision your opponents may disagree with you, but they are not surprised.  If you have “the gift” and you make a decision, those on the short side feel betrayed and angry, because they thought you agreed with them and then “sold out” and decided the other way.

Obama is in a tight spot where he has to make decisions and decisions have consequences.  When you make a decision it is very hard to make it seem like everyone got their way.  His complete lack of executive experience is telling.  If he had some executive experience, such as a mayor or a governor, he might have had enough practice learning how to make his decisions appear to satisfy everyone, as his campaign speeches did.  But that’s the thing about decisions.  If everyone supports them, they’re not much of a decision, like deciding to pardon a turkey on Thanksgiving.  Everyone enjoys the decision, but it’s really not what we elect presidents for.

I’ll Have the Waffles, Please

If you watch closely, you can see that Obama is struggling to preserve “the gift”.  He said he is for closing Guantanamo, but not yet.  He is for pulling out of Iraq, but no timetable.  The general he put in charge of Afghanistan, McChrystal, said he needed 40,000 more troops, but Obama could not bring himself to say yes or no.  He had to ponder, think, consult, weigh alternatives, and three months later, he gave McChrystal what he asked for.  Those on the left complained that he was not pulling out.  Those on the right complained that he wasted precious time while our troops were on the battlefield.  His backers tried to give him the fig leaf of showing gravitas.   He can’t seem to find the magic formula where everyone applauds him.  From “the gift” he has gone to “the anti-gift”.  Instead of satisfying everyone, he is finding that he is satisfying no one.

Move On

It’s time for Obama to “Move On”.  He should put “the gift” in his trophy case right next to his Nobel Peace Prize.  It got him to the White House.  How much more can he ask of such a thing?  So drop the pretense.  We all know he is a hard left guy, so he should just be who he is.  He may suddenly face a more hostile press, or they may love him more, although that would be hard to believe.  But when he makes a decision he will at least please his base, and then his opponents can fight his statist goals without being branded as racists.  As a hard left guy he will probably not get re-elected because America is not a hard left country, on the contrary the majority of Americans describe themselves as conservative.  But by choosing he can try to do what he can within one term.  It will be a battle. Obama’s poll ratings have dropped steadily since his inauguration and the Democrats are likely to lose seats in Congress this fall.  As an old acquaintance once said to me, “It’s like standing in the middle of the road.  Choose left or choose right, but choose; otherwise you get hit by traffic coming in both directions.”

Despite the economic turmoil, the bruising two year run for the presidency, and the continued danger around the world there is still much to be thankful for.

• We have not been attacked since 2001 due to the efforts of President Bush and his administration
• We have had another election, this one a particularly historic one, and we are in the midst of another peaceful transition of power, something that is the marvel of the world that we have been able to do this for over two hundred years.
• There is talk about the worst economic times since the Great Depression, which is what we typically hear each election season such that it trivializes those hard times.  These are probably the worst economic times since the Carter Administration, but even with that interest rates are no where near the 20%+ they were back then, unemployment is still in single digits, lower than in the Carter years and no where near the 25% of the Great Depression
• Business is being conducted,  jobs are being posted, and we will get through this

It is a time to reflect on what we have, despite the challenges, and how great this country is.  To help me stay grounded I have always enjoyed reading two articles that are published each year at this time in the Wall Street Journal.  The first tells the story of the Pilgrims and their journey to the New World and how having made that decision there was no turning back. You can follow the link to it here, The Desolate Wilderness.

The second article is called And The Fair Land which was written in 1961.  It seems that a number of the things it mentions are still current.  It is a testament to the fact that we will always have challenges, but as Americans, we will find a way to overcome them.  The key to this is to allow the American people the freedom and liberty to try, experiment, and find solutions.  The less government gets in the way, the more confident I am that we are only limited in by our imagination.

Have a Happy Thanksgiving