TO FORM A MORE PERFECT UNION: An Honest, Open, Effective, Transparent, Good-Faith, Responsive, Accountable, Much Smaller and Far Less Expensive Federal Government -- Greater Freedom and Liberty -- Fewer and Smarter Regulations -- Fewer and Smarter Taxes (i.e., FAIR TAX) -- More National Security -- More Secure Borders -- More Stable Currency -- An Accurate, Fair, Honest and Unbiased News Media
1. The world is a dangerous place to live — not because of the people who are evil but because of the people who don't do anything about it. — Albert Einstein
2. The quickest way of ending a war is to lose it. — George Orwell
3. History teaches that war begins when governments believe the price of aggression is cheap. — Ronald Reagan
4. The terror most people are concerned with is the IRS. — Malcolm Forbes
5. There is nothing so incompetent, ineffective, arrogant, expensive, and wasteful as an unreasonable, unaccountable, and unrepentant government monopoly. — A Patriot
6. Visualize World Peace — Through Firepower!
7. Nothing says sincerity like a Carrier Strike Group and a U.S. Marine Air-Ground Task Force.
8. One cannot be reasoned out of a position that he has not first been reasoned into.
2017-03-09
The Exhaustion of American Liberalism
2016-04-18
The Big Lie of the Presidential Campaign
Apparently millions of American voters believe the federal government should be required by law to provide things for the folks – education, healthcare, good jobs, financial security in old age, on and on.
That belief runs counter to how America was established in the late 18th century when our first-elected officials put their game plan into effect.
Basically their vision was a limited one. Citizens would have basic freedoms to worship, vote, speak openly without being punished, assemble without interference, and pursue happiness within the framework of the law.
It was entirely up to the folks how they would use those freedoms. No one was forced to go to the voting booth as they are in Australia, no one was forced to believe in God as they were in the Massachusetts Bay Colony.
Today the question of individual choice -- the quest to succeed or fail on your own -- has almost been obliterated by politicians and judges who don't respect the concept of competition and the struggle to prosper.
In short, they are evolving away from how this country was established.
In addition, they are deceiving the American people into believing that their success and well-being will be almost assured by a giant federal nanny state, which is absolutely impossible in a nation of nearly 320 million people.
Politicians deceive because it is an easy way to seduce voters unhappy with their circumstance in life.
When Bernie Sanders tells Americans that the economic system is rigged against them, he destroys incentive.
Why work hard if the big banks will harm you no matter what? If I am failing, it's not my fault -- the phantom billionaires are hurting me.
Sanders is correct that the feds need to stop fraud in the marketplace, but his message of wall-to-wall capitalist corruption is false and pernicious.
When a guy like Rand Paul tells Americans that they should be able to intoxicate themselves at will and public safety be dammed, he gives license to behavior that has destroyed untold billions of people the world over. Not to mention the message that legalized drugs sends to children.
We don't live in a vacuum here. The condition of others can directly affect us, just look at the drunk-driving stats.
When Al Sharpton and his grievance lobby assert that black Americans are oppressed by a racist system bent on hurting them, he provides an excuse for a litany of apathetic and destructive behaviors.
The kid struggling in a bad school with parents who don't care needs all the encouragement leadership can give him or her, not a list of historical atrocities that can cause even more bitterness.
The cold fact is very few powerful people are willing to address vexing problems by telling the truth to the folks.
Here's what the government owes us:
Protection from foreign concerns who would harm us.
Protection from criminals who would harm us.
A secure border system whereby our immigration laws are enforced and respected.
An infrastructure of mass transportation that is safe and efficient. What the U.S. airlines are doing to their passengers is a scandal and the fact that we don't have a high-speed rail system is flat out irresponsible.
The government also has an obligation to protect our constitutional rights and to protect private property.
Seizing assets after an American dies is abhorrent. Many Americans work hard all their lives to give their children a better situation than they had.
Finally, it is the duty of those in power to foster a system that allows every single American a truly fair shot at material and emotional success.
That means schools with strong educational and disciplinary standards; subsidized benefits for the poor and infirmed that are delivered responsibly with clear guidelines; also, protections in the workplace against companies that would violate labor laws and exploit powerless employees.
That's the heart of what the government owes us and social engineering is not part of it, nor is free education, nor free health care, nor a free income if you choose to lay about.
Workers pay taxes to support the government, as well as for personal social security in old age, which the feds have mismanaged in the extreme.
We deserve honesty and responsible spending, not wasteful programs designed to secure votes.
Last week I spoke with Donald Trump about his promise to return jobs from overseas.
Mr. Trump, Senator Sanders and Secretary Clinton all say they will punish American companies who move jobs abroad.
A president could certainly make life very difficult for corporations that ship jobs out, but the truth is that many of the lost jobs pay little and even if they do come back it's a marginal play.
The big problem is that millions of Americans are so poorly educated and personally irresponsible they simply cannot compete in the free marketplace.
So what are the power-seekers going to do about that?
Blank stares.
Now the race hustlers, who apparently have not walked the streets of poor neighborhoods lately, immediately accused me of racism.
And that is why the acute problem of cultural deprivation among underclass children of all colors is never addressed. The smear merchants hammer anyone who does so.
It is beyond disgraceful that powerful people look away from the real problem.
Mr. Trump is noble in his intent to create jobs and train Americans to do them.
But that will require much more than trade deals and rhetoric.
It will require a cultural change in many working class and poor precincts. If you reject the conventional road to success -- education and hard work -- you will fail in our capitalistic system … no matter what kind of outlandish promises Bernie Sanders makes.
It is all about personal responsibility and motivation, and who is preaching that message?
Who?
The truth is that individual motivation is being destroyed by phony politicians seeking power by promising an endless series of entitlements to a population that is moving away from achievement and into the gimme zone … gimme, gimme, gimme.
Until that deep cultural flaw is exposed, until the phonies, race hustlers and corporate greed heads are called out, we will continue to see big lies spouted by deceivers and enabled by a gutless media.
God help America.
And that's the memo.
|
2012-11-16
2012-09-12
Obama: The Radical Marxist
Figures. Chicago Teacher’s Union President Linked to Former Communist Party Chief and Barack Obama
Posted by Jim Hoft
September 10, 2012
More Hope and Change…
Mike Klonsky, an Obama supporter and former associate of the radicals who formed the terrorist group the Weatherman, received a $175,000 grant from the William Ayers/Barack Obama-led Annenberg Challenge to run the Small Schools Workshop.
Klonsky belonged to the Students for a Democratic Society (SDS) and was best friends with friends William Ayers and Bernadine Dohrn who later became famous for their acts of terrorism.
Later he started a blog on the Obama website: Between 1979 and 1981, Communist Party chairman and Obama supporter Mike Klonsky was repeatedly feted with state-dinner-level visits to Beijing.
And get this… Klonsky reportedly shared offices on the same floor with Barack Obama and Bill Ayers at the University of Illinois, Chicago campus.
So it should come as no surprise that Mike Klonsky, the former Communist Party leader, is a huge supporter of Karen Lewis, head of the Chicago Teachers’ Union. Chicago teachers went on strike today for the first time in 25 years despite the fact that the average teacher salary in Chicago is $74,839 a year.
Obama served with Weather Underground terrorist and neighbor Bill Ayers on the Chicago Annenberg Challenge education initiative. Downplaying academic achievement in favor of left-wing radical activism in the public schools is rooted in Bill Ayers’ pedagogical philosophy. Obama served as the program’s first chairman of the board, while Ayers steered its curricular policy. The two oversaw grants to welfare rights enterprise ACORN and to avowed communist Michael Klonsky – a close pal of Ayers and member of the militant Students for a Democratic Society. SDS served as a precursor to the violent Weather Underground organization.
As investigative journalist Stanley Kurtz reported, Klonsky and Ayers teamed up on the so-called “small schools movement” to steer schoolchildren away from core academics to left-wing politicking on issues of “inequity, war, and violence.”
2012-09-02
2012-08-21
Hit The Road, Barack - NOW!
Obama’s Gotta Go
Yet the question confronting the country nearly four years later is not who was the better candidate four years ago. It is whether the winner has delivered on his promises. And the sad truth is that he has not.
In an unguarded moment earlier this year, the president commented that the private sector of the economy was “doing fine.” Certainly, the stock market is well up (by 74 percent) relative to the close on Inauguration Day 2009. But the total number of private-sector jobs is still 4.3 million below the January 2008 peak. Meanwhile, since 2008, a staggering 3.6 million Americans have been added to Social Security’s disability insurance program. This is one of many ways unemployment is being concealed.
In his fiscal year 2010 budget—the first he presented—the president envisaged growth of 3.2 percent in 2010, 4.0 percent in 2011, 4.6 percent in 2012. The actual numbers were 2.4 percent in 2010 and 1.8 percent in 2011; few forecasters now expect it to be much above 2.3 percent this year.
Unemployment was supposed to be 6 percent by now. It has averaged 8.2 percent this year so far. Meanwhile real median annual household income has dropped more than 5 percent since June 2009. Nearly 110 million individuals received a welfare benefit in 2011, mostly Medicaid or food stamps.
Niall Ferguson discussed Obama's broken promises on ‘Face the Nation.’
And all this despite a far bigger hike in the federal debt than we were promised. According to the 2010 budget, the debt in public hands was supposed to fall in relation to GDP from 67 percent in 2010 to less than 66 percent this year. If only. By the end of this year, according to the Congressional Budget Office (CBO), it will reach 70 percent of GDP. These figures significantly understate the debt problem, however. The ratio that matters is debt to revenue. That number has leapt upward from 165 percent in 2008 to 262 percent this year, according to figures from the International Monetary Fund. Among developed economies, only Ireland and Spain have seen a bigger deterioration.
Not only did the initial fiscal stimulus fade after the sugar rush of 2009, but the president has done absolutely nothing to close the long-term gap between spending and revenue.
His much-vaunted health-care reform will not prevent spending on health programs growing from more than 5 percent of GDP today to almost 10 percent in 2037. Add the projected increase in the costs of Social Security and you are looking at a total bill of 16 percent of GDP 25 years from now. That is only slightly less than the average cost of all federal programs and activities, apart from net interest payments, over the past 40 years. Under this president’s policies, the debt is on course to approach 200 percent of GDP in 2037—a mountain of debt that is bound to reduce growth even further.
Newsweek’s executive editor, Justine Rosenthal, tells the story behind Ferguson’s cover story.
And even that figure understates the real debt burden. The most recent estimate for the difference between the net present value of federal government liabilities and the net present value of future federal revenues—what economist Larry Kotlikoff calls the true “fiscal gap”—is $222 trillion.
There’s some truth in this. It was pretty hard to foresee what was going to happen to the economy in the years after 2008. Yet surely we can legitimately blame the president for the political mistakes of the past four years. After all, it’s the president’s job to run the executive branch effectively—to lead the nation. And here is where his failure has been greatest.
According to Ron Suskind’s book Confidence Men, Summers told Orszag over dinner in May 2009: “You know, Peter, we’re really home alone ... I mean it. We’re home alone. There’s no adult in charge. Clinton would never have made these mistakes [of indecisiveness on key economic issues].” On issue after issue, according to Suskind, Summers overruled the president. “You can’t just march in and make that argument and then have him make a decision,” Summers told Orszag, “because he doesn’t know what he’s deciding.” (I have heard similar things said off the record by key participants in the president’s interminable “seminar” on Afghanistan policy.)
This problem extended beyond the White House. After the imperial presidency of the Bush era, there was something more like parliamentary government in the first two years of Obama’s administration. The president proposed; Congress disposed. It was Nancy Pelosi and her cohorts who wrote the stimulus bill and made sure it was stuffed full of political pork. And it was the Democrats in Congress—led by Christopher Dodd and Barney Frank—who devised the 2,319-page Wall Street Reform and Consumer Protection Act (Dodd-Frank, for short), a near-perfect example of excessive complexity in regulation. The act requires that regulators create 243 rules, conduct 67 studies, and issue 22 periodic reports. It eliminates one regulator and creates two new ones.
It is five years since the financial crisis began, but the central problems—excessive financial concentration and excessive financial leverage—have not been addressed.
Today a mere 10 too-big-to-fail financial institutions are responsible for three quarters of total financial assets under management in the United States. Yet the country’s largest banks are at least $50 billion short of meeting new capital requirements under the new “Basel III” accords governing bank capital adequacy.
Obama Faces a Tough Crowd in Iowa
Ironically, the core Obamacare concept of the “individual mandate” (requiring all Americans to buy insurance or face a fine) was something the president himself had opposed when vying with Hillary Clinton for the Democratic nomination. A much more accurate term would be “Pelosicare,” since it was she who really forced the bill through Congress.
Pelosicare was not only a political disaster. Polls consistently showed that only a minority of the public liked the ACA, and it was the main reason why Republicans regained control of the House in 2010. It was also another fiscal snafu. The president pledged that health-care reform would not add a cent to the deficit. But the CBO and the Joint Committee on Taxation now estimate that the insurance-coverage provisions of the ACA will have a net cost of close to $1.2 trillion over the 2012–22 period.
The failures of leadership on economic and fiscal policy over the past four years have had geopolitical consequences. The World Bank expects the U.S. to grow by just 2 percent in 2012. China will grow four times faster than that; India three times faster. By 2017, the International Monetary Fund predicts, the GDP of China will overtake that of the United States.
For me the president’s greatest failure has been not to think through the implications of these challenges to American power. Far from developing a coherent strategy, he believed—perhaps encouraged by the premature award of the Nobel Peace Prize—that all he needed to do was to make touchy-feely speeches around the world explaining to foreigners that he was not George W. Bush.
In Tokyo in November 2009, the president gave his boilerplate hug-a-foreigner speech: “In an interconnected world, power does not need to be a zero-sum game, and nations need not fear the success of another ... The United States does not seek to contain China ... On the contrary, the rise of a strong, prosperous China can be a source of strength for the community of nations.” Yet by fall 2011, this approach had been jettisoned in favor of a “pivot” back to the Pacific, including risible deployments of troops to Australia and Singapore. From the vantage point of Beijing, neither approach had credibility.
His Cairo speech of June 4, 2009, was an especially clumsy bid to ingratiate himself on what proved to be the eve of a regional revolution. “I’m also proud to carry with me,” he told Egyptians, “a greeting of peace from Muslim communities in my country: Assalamu alaikum ... I’ve come here ... to seek a new beginning between the United States and Muslims around the world, one based ... upon the truth that America and Islam are not exclusive and need not be in competition.”
In the case of Iran he did nothing, and the thugs of the Islamic Republic ruthlessly crushed the demonstrations. Ditto Syria. In Libya he was cajoled into intervening. In Egypt he tried to have it both ways, exhorting Egyptian President Hosni Mubarak to leave, then drawing back and recommending an “orderly transition.” The result was a foreign-policy debacle. Not only were Egypt’s elites appalled by what seemed to them a betrayal, but the victors—the Muslim Brotherhood—had nothing to be grateful for. America’s closest Middle Eastern allies—Israel and the Saudis—looked on in amazement.
“This is what happens when you get caught by surprise,” an anonymous American official told The New York Times in February 2011. “We’ve had endless strategy sessions for the past two years on Mideast peace, on containing Iran. And how many of them factored in the possibility that Egypt moves from stability to turmoil? None.”
Remarkably the president polls relatively strongly on national security. Yet the public mistakes his administration’s astonishingly uninhibited use of political assassination for a coherent strategy. According to the Bureau of Investigative Journalism in London, the civilian proportion of drone casualties was 16 percent last year. Ask yourself how the liberal media would have behaved if George W. Bush had used drones this way. Yet somehow it is only ever Republican secretaries of state who are accused of committing “war crimes.”
The real crime is that the assassination program destroys potentially crucial intelligence (as well as antagonizing locals) every time a drone strikes. It symbolizes the administration’s decision to abandon counterinsurgency in favor of a narrow counterterrorism. What that means in practice is the abandonment not only of Iraq but soon of Afghanistan too. Understandably, the men and women who have served there wonder what exactly their sacrifice was for, if any notion that we are nation building has been quietly dumped. Only when both countries sink back into civil war will we realize the real price of Obama’s foreign policy.
America under this president is a superpower in retreat, if not retirement. Small wonder 46 percent of Americans—and 63 percent of Chinese—believe that China already has replaced the U.S. as the world’s leading superpower or eventually will.
Now Obama is going head-to-head with his nemesis: a politician who believes more in content than in form, more in reform than in rhetoric. In the past days much has been written about Wisconsin Congressman Paul Ryan, Mitt Romney’s choice of running mate. I know, like, and admire Paul Ryan. For me, the point about him is simple. He is one of only a handful of politicians in Washington who is truly sincere about addressing this country’s fiscal crisis.
Just as importantly, Ryan has learned that politics is the art of the possible. There are parts of his plan that he is understandably soft-pedaling right now—notably the new source of federal revenue referred to in his 2010 “Roadmap for America’s Future” as a “business consumption tax.” Stockman needs to remind himself that the real “fairy-tale budget plans” have been the ones produced by the White House since 2009.
I first met Paul Ryan in April 2010. I had been invited to a dinner in Washington where the U.S. fiscal crisis was going to be the topic of discussion. So crucial did this subject seem to me that I expected the dinner to happen in one of the city’s biggest hotel ballrooms. It was actually held in the host’s home. Three congressmen showed up—a sign of how successful the president’s fiscal version of “don’t ask, don’t tell” (about the debt) had been. Ryan blew me away. I have wanted to see him in the White House ever since.
It remains to be seen if the American public is ready to embrace the radical overhaul of the nation’s finances that Ryan proposes. The public mood is deeply ambivalent. The president’s approval rating is down to 49 percent. The Gallup Economic Confidence Index is at minus 28 (down from minus 13 in May). But Obama is still narrowly ahead of Romney in the polls as far as the popular vote is concerned (50.8 to 48.2) and comfortably ahead in the Electoral College. The pollsters say that Paul Ryan’s nomination is not a game changer; indeed, he is a high-risk choice for Romney because so many people feel nervous about the reforms Ryan proposes.
But one thing is clear. Ryan psychs Obama out. This has been apparent ever since the White House went on the offensive against Ryan in the spring of last year. And the reason he psychs him out is that, unlike Obama, Ryan has a plan—as opposed to a narrative—for this country.
Mitt Romney is not the best candidate for the presidency I can imagine. But he was clearly the best of the Republican contenders for the nomination. He brings to the presidency precisely the kind of experience—both in the business world and in executive office—that Barack Obama manifestly lacked four years ago. (If only Obama had worked at Bain Capital for a few years, instead of as a community organizer in Chicago, he might understand exactly why the private sector is not “doing fine” right now.) And by picking Ryan as his running mate, Romney has given the first real sign that—unlike Obama—he is a courageous leader who will not duck the challenges America faces.
The voters now face a stark choice. They can let Barack Obama’s rambling, solipsistic narrative continue until they find themselves living in some American version of Europe, with low growth, high unemployment, even higher debt—and real geopolitical decline.
Or they can opt for real change: the kind of change that will end four years of economic underperformance, stop the terrifying accumulation of debt, and reestablish a secure fiscal foundation for American national security.
I’ve said it before: it’s a choice between les Ătats Unis and the Republic of the Battle Hymn. I was a good loser four years ago. But this year, fired up by the rise of Ryan, I want badly to win.
2011-01-26
2011 The State of the Union Heritage Reply
What does the committed progressive do when the direction of history turns against them? That’s what seems to have happened between 2008 and 2010–between an election thought to be the next great leap forward in the movement of liberalism and another which seems to signal a popular rejection of just that claim. The Left had long maintained that big government is inevitable, permanent, and ever-expanding – the final form of “democratic” governance. But now the progressive transformation seems to have bogged down. Indeed, the Left’s beloved modern state seems at issue. The American people just haven’t bought in to the whole new New Deal. Now what?
Consolidate. For progressives, politics has always been seen as an ebb and flow between periods of “progress” and “change” and brief interregnums to defend and consolidate the status quo as we wait for the bursting forth of the next great era of reformism. “It is time to leave behind the divisive battles of the past,” he said at one point, referring to the fight over open homosexuality in the military. “It is time to move forward as one nation.” Look at what he said about “the new health care law”: he is eager to improve it, but “what I’m not willing to do is go back.” “So instead of re-fighting the battles of the last two years, let’s fix what needs fixing and move forward.” Lock in progressive achievements and let’s move on.
Next, redefine what change means. Rather than transformative change (as in the old notion of ‘we are the change we have been waiting for’) it now turns out that “the world has changed,” driven by technology and competition. The new challenge is not to bring about change but to respond to change and “meet the demands of a new age.” What we can’t do is stand pat–a cut against conservatives using the phrase early progressives coined against their critics who wanted to “stand pat” rather than join the liberal surge. Today we must change to keep up with change.
President Obama said several times that we must “win the future.” Fine. Does anyone want to lose the future? But–and here he betrays his progressive principles and reconfirms that liberalism is the philosophy of government–it turns out that the key is more government “investment” in innovation, education and infrastructure. And more progressive government: “We cannot win the future with a government of the past.” We know what that means.
So: consolidate, meet the demands for change and win the future. There’s still hope: “We are poised for progress.”
- Matt Spalding
Still No Choice in Education
We agree with the president: No Child Left Behind is broken. Unfortunately, the similarities end there. although both sides of the aisle agree that No Child Left Behind is broken, the Obama administration does not believe the federal role in education is fundamentally flawed. They’re still holding onto the hope that after 40 years of failed federal interventions, this time, Washington will get it right.
In his address tonight, President Obama lauded his Race to the Top Program and continued to promote national standards. He also talked extensively about “investing” more in education, a clear indication that he plans to continue Washington’s education spending spree.
But conservatives have a better plan for improving education: The Academic Partnerships Lead Us to Success (A-PLUS) plan. A-PLUS would allow states to opt out of onerous federal programs such as those found within NCLB, and would allow state and local leaders to have more control over education dollars and decision-making.
The president’s speech also lacked any serious discussion of school choice, despite the fact that the highly effective D.C. Opportunity Scholarship Program is on life support in his back yard. By contrast, Speaker John Boehner had parents and children from the D.C. Opportunity Scholarship Program as guests in the Speaker’s Box during the SOTU tonight – a sure sign that he plans to make school choice in the District a priority.
- Lindsey Burke
Obamacare is Still Unconstitutional
Tonight, the President, defending his health care plan, stated “If you have ideas about how to improve this law by making care better or more affordable, I am eager to work with you.” Unfortunately, he did not express any concern regarding the constitutionality of the bill. As Heritage has described here [3], the health care mandate is both unprecedented, and unconstitutional. A federal court in Virginia has already agreed, declaring the mandate unconstitutional, and a majority of states are challenging the mandate in court in Florida.
The mandate’s constitutional defect is a major problem for Obama’s offer to just modify the existing, ill-conceived bill, because as President Obama’s own Justice Department has argued in court, the mandate is so essential given the other requirements in the law that its elimination would “inexorably drive [the health insurance] market into extinction.” Tinkering around the edges will not fix the problems with this bill. A due respect for the Constitution and public opinion requires that the unprecedented overreaching of the mandate be corrected–and this will require complete repeal.
- Robert Alt
Social Security
The good news was that the speech included a reference to fixing Social Security. Unfortunately, President Obama’s laudable goal of finding a “bipartisan solution to strengthen Social Security for future generations” was either empty rhetoric or showed a serious misunderstanding of what causes that program’s underfunding. His next sentence exempted everything that might improve future generations’ retirement security except raising taxes.
Not only does that make a bipartisan solution almost impossible, but the tax increases that he has discussed in the past don’t fix the problem. For instance, Social Security’s nonpartisan actuaries say that making every dollar or earnings subject to the payroll tax only delays the start of permanent deficits by 8 years from 2016 until 2024. Future retirees can still expect a more than 20 percent cut in their benefits. And those who would pay those higher taxes will see the huge increase in their marginal tax rates drain away dollars that could otherwise have been used to start small businesses.
The President’s approach ignores the recommendations of his own bipartisan commission. It also fails to recognize that Americans are living longer than ever, and that over 80 percent of those who reach retirement age are healthy enough to work a little longer if it means that they can avoid the 20 percent benefit cuts that will come otherwise. If he really wants a bipartisan solution to Social Security’s problems, this speech didn’t show it.
- David John
Repeal
Throughout the health care debate, the Heritage Foundation offered numerous ideas [4] for how to improve the health care system, including for those who are most in need.
Americans want health care reform, but not the kind enacted under the new health care law. They do not want to turn more power over their health care dollars or personal health care decisions to Washington bureaucrats. And, Congress cannot fix a health care law that is founded on a fundamentally flawed foundation. [5]
Real health care reform [6] is based on consumer-focused, market-based reforms that empower individuals by fixing the tax treatment of health insurance, transforming health care entitlement programs, and letting the states develop reforms that best meet the unique needs of their citizens through portability, choice and competition.
If the President is serious about American’s fiscal future, he would begin by repealing a health care law that adds a trillion dollars in new health care spending, stifles economic growth through a half a trillion in new taxes, burdens future generations with unknown costs, and undermines individual freedom through government mandates and regulations.
- Nina Owcharenko
Subsidies Don’t Create Jobs
In his state of the union address, President Obama dragged out a 50 year-old, cold-war poster child to paper over his proposal for a tried-and-failed energy/jobs policy. The rhetoric for his policy alludes to the Sputnik space race. Unfortunately, the reality promises a sputtering economy. Government bureaucrats and federal mandates are not the motivating force for innovation and job creation.
Last year’s poster children for clean-energy jobs, Solyndra and Evergreen Solar, are this year’s object lessons in the futility of trying to subsidize our way to good, permanent job creation.
Mere months after receiving a $535 million government loan (and after a well-publicized presidential photo op), Solyndra withdrew its initial public offering because it got a sub-par review from an independent auditor. And a year after getting their half-billion dollars, Solyndra closed a factory and got rid of nearly 200 jobs.
After much hyped state subsidies of up to $76 million and after millions of dollars of federal subsidies Evergreen Solar is now shutting its factory in Massachusetts, laying off 700 workers, and moving production to China.
If a company needs a subsidy to hire a worker, that worker will be out on the street when the subsidy expires. Private enterprise provides energy, creates jobs, and develops innovative technology. It does so because private enterprise only succeeds when the energy, jobs, and technology provide value that exceeds the cost. That’s how we get good, durable jobs.
- David Kreutzer
The State of the Family
This evening’s State of the Union address was notably devoid of discussion of one of the issues that could be fairly characterized as “decades in the making,” the phrase President Obama used to introduce a litany of problems facing the country. Evidence continues to accumulate [7] that the persistence of problems like poverty and welfare dependency is strongly associated with the rise in the number of children born out of wedlock.
To a striking degree, the challenges of the federal budget are linked to and aggravated by the fracturing in family budgets brought on by the failure of families to form [8] and government policies that neglect the best adhesive to repair that fracturing – the bonds of marriage. The state of American families went unmentioned tonight but it is vital that this conversation, and its implications [9] for the State of the Union, happen with a new urgency at the national level.
- Chuck Donovan
Preserving Peace
The President said tonight that the nation must always remember that the Americans who have borne the greatest burden in this struggle to be free are the men and women in uniform. President Obama was right to say that the country is united in support of those who serve and their families. As a result, he also rightly said that we must provide them the equipment that they need, care and benefits they’ve earned, and more.
The challenge in meeting this task of providing our all-volunteer force all the tools they need to succeed now and for the next 20 years is that the U.S. is slipping in this area, as well. The traditional margins of U.S. technological military superiority are declining across the board. These long-held “margins” are ingredients in U.S. military supremacy that have ensured that our forces are never in a fair fight. Indeed, during a recent trip to China, the Secretary of Defense said [10] that the Chinese “clearly have potential to put some of our capabilities at risk.”
Let us truly recall the lessons of history in reversing the trend [11] of trying to seek a peace dividend when none exists. A decade of conflict and two decades of underinvestment have left the U.S. military too small and inadequately equipped to do everything being asked of these men and women. In July 2010, a bipartisan commission warned of a coming “train wreck” if Congress does not act quickly to rebuild and modernize the U.S. military. There is no quick or easy fix. Meeting the military’s full modernization requirements [12]
American Founders understood [13] that “the surest means of avoiding war is to be prepared for it in peace.” As Thomas Paine warned, it would not be enough to “expect to reap the blessings of freedom.” Americans would have to “undergo the fatigues of supporting it.” Supporting freedom and defending the nation still requires public spending on the nation’s defense forces in both times of war and peace. As President George Washington asserted in his First Annual Message, delivered in 1790, the “most effectual means of preserving peace” is “to be prepared for war.” Congress and the President should recommit tonight to rebuilding America’s military and giving the best to those who serve.
- Mackenzie Eaglen
Tax Agenda Falls Short
President Obama acknowledged the two biggest tax issues holding back the economy and hampering our competitiveness: our inefficient individual income tax code and our high corporate tax rate. His desired remedies, however, fall short of what is needed.
The individual income tax code needs fundamental reform. It has become cluttered with too many credits, deductions, and exemptions that slow economic growth. The president did not lay out his vision for tax reform. For tax reform to become a reality leadership at the presidential level is vital. President Obama’s lack of thorough attention to the issue does not bold well for success in the near future.
The president revisited his old hobby horse: eliminating tax cuts for the top 2 percent of income earners. This was an odd inclusion in the speech since just a few weeks ago he signed a 2 year extension of those very tax cuts. And if tax reform does become a reality, the 2001/2003 tax cuts would be a non-issue.
On the corporate tax front the president was better but far from perfect. He rightly called for the rate to come down but only if Congress closes “loopholes” to offset the cost. Many of the provisions that are commonly referred to as loopholes are in fact justifiable deductions that help lessen the blow of the corporate tax systems’ other shortcomings like the taxation of income earned in foreign countries and the lack of ability for companies to immediately deduct the cost of capital investment. Getting rid of them will temper any benefit derived from a lower rate. The few loopholes that do exist would fall well short of making up the revenue from a rate cut. Spending should be cut to make sure the rate reduction does not add to the deficit.
The best tax recommendation the president made was the elimination of 1099 reporting requirements that are part of the healthcare law. These requirements will cripple small businesses should they ever go into effect.
The worst tax idea was the elimination of so-called subsidies for oil companies. These tax breaks allow oil companies to expense a portion of the huge upfront costs they incur for developing new oil sources. The specific provisions would not be necessary if the tax code rightly allowed all businesses to expense their capital investments. Taking them away from oil companies will increase the cost of oil for all Americans and be a step in the wrong direction for the tax code.
-Curtis Dubay
Denial on Deficits
On one vital point the nation has almost without exception reached a consensus when it comes to entitlement spending — current policy is unaffordable and unsustainable. President Obama acknowledged this clearly when he announced the creation of the National Commission on Fiscal Responsibility and Reform and again when he received the Commission’s final report. The preamble to the report concluded [14]:
After all the talk about debt and deficits, it is long past time for America’s leaders to put up or shut up. The era of debt denial is over, and there can be no turning back.To the existing consensus regarding the need to act, the need for “America’s leaders to put up or shut up,” as the Commission put it, can now be added a second point of broad agreement – the President’s policies as outlined in his State of the Union Address regarding Social Security, Medicare, and Medicaid, the programs that have the nation on course to a “crushing debt burden”, continue the era of debt denial unabated, unabashedly, even proudly.
The President in short has turned his back on his own Commission, on his vows of leadership, and on future generations. On these issues it will now be up to the Congress to take up the mantle of leadership the President has found too heavy to bear.
-JD Foster
American Leadership
In the opening section of his address, the President referred to the need to “sustain the leadership that has made America not just a place on a map, but a light to the world.” Those are certainly words that conservatives can endorse and respect, just as they will agree with his statement that America is “the first nation that was founded for the sake of an idea.” As Matthew Spalding has stated, the American creed [15] “is set forth most clearly in the Declaration of Independence, … a timeless statement of inherent rights, the proper purposes of government, and the limits on political authority.”
Unfortunately, this was not the creed that the President proclaimed in his speech. Instead of recognizing that the Founders wanted to limit the role of the federal government, the President continued on in the vein that has marked American politics for too many years: arguing that the needs of tomorrow demand more spending — the President now calls them “investments” — on programs that have already failed.
Laudably, the President called on Congress to pass the free trade area with South Korea; regrettably, he accompanied it with a reiteration of his promise to “only sign deals that keep faith with American workers, and promote American jobs,” a pledge that, in the case of the agreement with South Korea, meant months of delay and special favors to organized labor in the U.S. automotive sector [16].
Laudably, the President twice noted the need for American leadership in the world. He even went so far as to claim that “American leadership has been renewed and America’s standing has been restored.”
The source of this restoration, though, remained mysterious. In Iraq, the President noted, the war is ending — thanks to the surge strategy that the President opposed. America continues to disrupt Islamist plots — made by an enemy the President was unwilling even to name, in a war that, as the still-open Guantanamo prison testifies, has required him to rethink his presumptions.
In Afghanistan, the President reiterated the U.S. determination to win — and coupled it with a promise that “we will begin to bring our troops home” in July 2011. The New START treaty and the “reset” with Russia made predictable appearances — but nothing was heard about the fact that Russia is an autocracy that attacks, threatens, and subverts its neighbors, while at the same time it murders and imprisons opponents at home.
In the realm of foreign affairs, the only surprises came at the end of the President’s remarks, when he expressed solidarity with Southern Sudan, and explicitly said that “the United States of America stands with the people of Tunisia, and supports the democratic aspirations of all people.” Where is that support in Russia? In Iran? In China?
As Marion Smith wrote in his essay [17] on American leadership, “George Washington recommended a foreign policy of independence and strength, a policy that would allow America to ‘choose peace or war, as our interest, guided by justice, shall counsel.’ ” What was missing from
the President’s address was any sense that both U.S. interests and our sense of justice ought not to be engaged only in the Tunisias of the world. The President’s emphasis on the value of American’s alliances was welcome. Too bad it was not balanced by a recognition that the U.S. also faces hostile regimes.
In an echo of President George W. Bush’s call in 2002 for “a balance of power that favors freedom” — a phrase much mocked at the time — President Obama called for “a world that favors peace and prosperity.”
Until the President accepts that prosperity flows from freedom, and that we will not advance the cause of peace by speaking only in abstractions about oppression in “some countries” and ignoring the flaws in the world’s multilateral institutions, all of us are not likely to move closer to that goal.
- Ted Bromund
President’s Budget Proposals Don’t Match the Rhetoric
President Obama asserted that “a critical step in winning the future is to make sure we aren’t buried under a mountain of debt.” Yet he failed to offer any proposals that would significantly rein in escalating spending and deficits.
The President’s proposed freeze of non-security discretionary spending would essentially lock in the 25 percent expansion these programs have received since 2007. Yet paring back deficits requires actually reducing runaway spending, starting with the House Republican plan to cut this spending back to 2008 or even 2006 [18] levels.
Furthermore, only 12 percent of the federal budget would be affected by the President’s freeze proposal. Social Security, Medicare, and Medicaid costs are truly driving long-term deficits [19] upward. Yet the President ignored nearly all entitlement reforms proposed by his own commission [20], and even stated opposition to any change in future Social Security benefits. Additionally, the President again defended his budget-busting trillion-dollar health care program.
Finally, President Obama sought to rehabilitate the reputation of runaway spending by renaming it “investment.” While investment indeed drives economic growth, politicians have proven to be poor investors. Federal K-12 education spending has grown 219 percent [21] faster than inflation over the past decade, yet student test scores have stagnated. Thirty years of federal energy spending has failed to significantly improve the alternative energy market. And massive increases in federal transportation spending have been diverted [22] into earmarks, bike paths, and museums, or allocated to budget-busting transit [23] programs that governors do not want. If President Obama truly wants to encourage investment, he should focus on reducing the budget deficit – which is crowding out private investment – and should reduce barriers to productive private sector investments.
-Brian Riedl
1 Million Electric Cars Should Reach the Market When They’re Ready
In his address President Obama emphasized that [24] “With more research and incentives, we can break our dependence on oil with biofuels, and become the first country to have 1 million electric vehicles on the road by 2015.”
How much more research and incentives do electric cards need? [25] We taxpayers have handed out billions for advanced battery vehicle manufacturing. We taxpayers foot the bill (from $2,500–$7,500, depending on the battery capacity) for every electric vehicle purchase. And we taxpayers help pay for the tens of millions of dollars the Department of Energy spends to study increased battery storage. Even so, the demand for electric vehicles is low because electric cars are prohibitively costly even with the lavish handouts.
One survey [26] found that the number of consumers interested in buying a hybrid vehicle dropped from 61 percent to 30 percent when they learned they would pay an additional $5,000 compared to a comparable vehicle with a traditional internal combustion engine (ICE) Only 17 percent of those surveyed showed interest in buying a battery electric vehicle (BEV), and that number decreased to 5 percent when told a BEV would cost an additional $15,000 compared to the closest ICE-powered vehicle. Even after counting the gasoline savings you would reap from buying an electric vehicle, electric cars are still a bad investment [25]. A good sign for the viability of electric vehicles is when they won’t need the handouts from taxpayers.
President Obama also said in his address, “None of us can predict with certainty what the next big industry will be, or where the new jobs will come from. Thirty years ago, we couldn’t know that something called the Internet would lead to an economic revolution.”
The same is true with our vehicle fleet in the U.S. No one will know what it will look like 30 years from now, or even 4 years from now. So why is the government trying to dictate that market when it knows it can’t?
-Nick Loris
Free Enterprise vs Big Government
President Obama, in his speech tonight, rightfully identified the issue of competitiveness as a key for reviving the economy, and innovation as a vital ingredient in achieving that competitiveness. America can, as he said, out innovate the rest of the world. But his prescription for sparking that innovation and making America again a world leader is badly off-target. His model is Sputnik, and he prescribes economic NASAs as the solution. Washington would set the rules, define the parameters of the challenge. This is not the way the today’s economy works.
American entrepreneurs do not need grants from Washington in order to compete, they don’t need incentives from bureaucrats in order to compete. The Steve Jobs’ of the future are not applying for federal grants, or federal “challenges.” What they need is for Washington to get out of their way — to tax them less, regulate them less, and leave them alone. Yet, there was nothing in his remarks that provided hope that these burdens would be lifted anytime soon, save for a short reference to regulatory reform, and even that was hedged with defense of regulation. Until the need to free enterprise — rather than guide it — is addressed — the entrepreneurial spirit of Americans will remain leashed, and all the NASAs in the world will not improve our competitiveness
-James Gattuso
Energy “Investment”
In his State of the Union speech, President Obama pointed to the government investments that led to such commercial successes as the Internet, computer chips, and GPS (interestingly, he left out Tang). The implication is that more tax payer support would bring the same sort of innovation to the energy sector. This supposition is misleading.
The government programs that led to the Internet, computer chips, and GPS were not programs to develop technologies to meet a commercial demand. They were each the result of defense-related programs that were created to meet national security requirements. People like former Secretary of Energy and Defense, Dr. James Schlesinger argued tirelessly for investment in GPS not because it would help him to find the nearest burrito bar but because he (and not many others at the time) understood the national security value of such a system. It was not until after the first Gulf War (when Americans witnessed the accuracy with which GPS could guide a vehicle to its destination) that entrepreneurs gained access to GPS signals. It was they that that commercialized that technology, not the federal government. In essence, the federal government invested to develop capabilities that did not exist and were needed for specific government activities. Entrepreneurs gained access to that basic work and commercialized it.
This is an entirely different model from what the President is suggesting the United States take to develop new energy technologies. Not only does he want the federal government to choose which energy sources Americans can access, but he believes that the government is best prepared to oversee the entire business development process. He does not want to support research and development, but he wants to drive commercialization, and to define the market.
That is not the right approach for the United States. We are a country abundant with natural resources and as the President correctly pointed out, “Our free enterprise system is what drives innovations.” Mr. President, you had me at “innovation.” Too bad you lost me after that.
-Jack Spencer
Obama’a Sputnik Moment
“This is our generation’s Sputnik moment,” declared President Obama in the State of the Union address. If he believes that, he probably should have studied his history and how President Eisenhower responded to Russia’s satellite launch—because Ike would not have endorsed anything like Obama’s prescription. In the wake of sputnik hysteria the Gaither commission argued [27] for an astronomical increase in spending to “catch-up” with the Soviets. Eisenhower knew that writing checks that the nation can’t cash is no way to make America more innovative. Ike declared you do not win a competition by “by bankrupting yourself…”
President Eisenhower’s reluctance to throw government and money at every problem was rooted in his distrust of Big Government. “Eisenhower was deeply concerned about the growth of the federal government and the systematic loss of state and local autonomy,” writes [28] Martin Medhurst, an expert on Ike’s rhetoric. “He was concerned about a government that spent more than it took in. …”
Eisenhower also understood that getting spending under control was about getting Washington’s priorities right. Ike did not want to needlessly throw money at anything, even defense(“[G]ood management dictates that we resist overspending as resolutely as we oppose under-spending, Ike declared), but he clearly understood that soundly funding defense had to be his first priority. Obama’s call of simply calling for not-cutting security spending is not enough – defense modernization is already underfunded and defense spending too inefficient [29] – Obama needs to buck up defense [30] even as he needs to do much, much more to reign in other government spending.
We did not hear that kind of commitment during the State of the Union address. Nor did we hear a president who is willing to get tough with all of America’s competitors in the same way Ike would. Instead, the Obama Doctrine [31] is still alive and well.
The State of the Union address was a pale shadow of what the nation should expect [32] from presidents who are responsible for providing for the common defense.
-James Carafano

