Category: Accountability

Categories
Accountability

My Favorite Fix

California is going bankrupt. Behind its economic trouble lies serious political dysfunction.

What to do?

To hear some Golden State legislators and experts talk, the problem can be blamed squarely on the people and their lawmaking power through the state’s initiative process.

While initiatives like Prop 13 and term limits may bedevil the Sacramento insiders, they remain popular among voting Californians. Voters don’t see handing over all power to the politicians as a magic solution.

Others suggest California is so ungovernable that it should be split into two, a North and a South California. Why? To make the insolvent state start completely anew. And to reduce the massive scale of decision-making in what is by far our country’s most populous state.

I have a better solution, which more and more folks from across the political spectrum seem to be considering. I suggest doubling the size of California’s legislature. Or tripling. Or more.

California’s legislative districts are huge, dwarfing those in other states. The ratio of voters to Assembly reps is 455,000 to one. The ratio of state senators to constituents is 900,000 to one.

The balance of interests between citizens and their representatives is all out of whack. When constituencies grow too large, politicians feel answerable to no one.

Smaller districts give voters more relative power — and legislators relatively less. Now that sounds like the right track.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability free trade & free markets national politics & policies

Stress Test for the Fed?

A bill proposed by Congressman Ron Paul would shine a light on the mysterious goings-on at the Federal Reserve.

The Fed has been sopping up many billions in toxic assets, creating money hocus-pocus, loaning vast fortunes to central banks in other countries, and in general behaving as if its actions cannot have bad consequences.

HR 1207, introduced in February, would authorize the GAO to audit the Fed’s various funding facilities, used with such abandon over the last year. Look under the hood, see what’s going on in nitty-gritty detail.

Doesn’t sound very radical. But the Fed is accustomed to being “independent,” i.e., unaccountable. Yet as Jim Grant, editor of a publication that monitors interest rates, has observed, if the Fed had to accept the auditing it requires of others, it would be regarded as insolvent.

Except, of course, for that whole create-money-out-of-thin-air thing.

President Obama, a.k.a. Mr. Transparency, has said zilch to support the bill. Still, with over 150 Republicans and over 50 Democrats cosponsoring the legislation, it now has enough votes to pass if congressional leadership allows a vote.

An audit with a negative outcome would not force the Fed to shut down.

But it would provide more ammo for those interested in slowing or stopping fiscal insanity.

And that, too, should be bipartisan. Transpartisan. Universal.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability too much government

So Let It Be Read

It’s a laugh a minute on Capitol Hill, where folks who supposedly represent us fritter away our freedom with giddy abandon. And without a glance at the fine print.

Well, it’s all fine print when you’ve got a cap-and-trade bill 900-plus pages long. This bill would tax businesses that need to produce more “greenhouse gases” than the new law would allow according to a formula so congested that, well, it takes 932 pages to spell it out. If the bill passes, it’s another punch to the gut of the American economy.

For a while, it seemed that Republicans on the energy committee might obstruct things, might insist that the bill be read. Aloud!

So the Democrats hired a speed reader. No reading was ever demanded. But since the guy had been hired, he was asked to zip through just a bit of the bill. His incredible machine-gun delivery cracked everybody up.

Well, DownsizeDC.org isn’t laughing. The activist group notes that the cap-capitalism bill was rushed through committee so fast that it could not possibly have been read, publicly or privately.

The group supports a Read the Bills Act to require every bill to be read in full before the House and Senate . . . and require all lawmakers to sign an affidavit affirming that they have read any bill they vote on. A sensible rule, long overdue. Seriously.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability free trade & free markets too much government U.S. Constitution

Stop Unconstitutional Stomping

Here’s an idea about how to help businesses survive in this troubled economic climate: Stop allowing an unaccountable regulatory board — unclad by even a fig leaf of constitutionality — to ride roughshod over public companies.

In the wake of the Enron scam and other financial scandals several years ago, Congress enacted a packet of onerous new regulations. This Sarbanes-Oxley legislation created a regulatory board, the Public Company Accounting Oversight Board, to issue arbitrary edicts, impose arbitrary penalties, etc.

One problem with this star chamber is that its officers are neither appointed by the executive branch nor approved by Congress, as required by the Constitution.

The Competitive Enterprise Institute and the Free Enterprise Fund want this practice to end. CEI explains that if the president were obliged to appoint and dismiss members of this board, as required by the Constitution’s Appointments Clause, “he will be on the hook for their policy failures, and thus have an interest in making them develop sound policies. . . . He won’t be able to blame the red tape on an unaccountable agency. . . .”

But the two organizations are not merely publishing op-eds and issuing press releases. They have filed suit, taking their case against the oversight board to the courts. And now the Supreme Court has agreed to hear the case.

At last, this oversight board gets some much-needed oversight.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability free trade & free markets too much government

Barney’s Bubble Babbling

To hear Congressman Barney Frank tell it, he was a lone voices of fiscal reason when the surge of ill-considered mortgage debt fueled the now-popped housing bubble.

Unfortunately for Frank, this is the age of the Internet. Bloggers have proved more than willing to collate inconvenient evidence.

Thanks to Ed Morrissey on HotAir.com, then, we have two testimonies of Frank-ish speechifying. Here’s Frank in 2009:

People haven’t fully understood. One of the causes of the terrible crisis we had over the last few years . . . it came from people being pushed into buying houses, taking out loans that they couldn’t afford. Part of that was a conservative view that rental housing was a bad thing. . . . People were pushing home ownership [for] people who shouldn’t have been there.

“People in power” pushed this, eh? Which people? The irresponsible conservatives. But here’s this same sir, Barney Frank, in a clip from 2005:

We have, I think, an excessive degree of concern right now about home ownership and its role in the economy. . . . This is not the dot-com situation. . . . [Y]ou’re not going to see the collapse that you see when people talk about a bubble. And so, those of us on our committee in particular, will continue to push for home ownership.

Oh dear. Barney, just be honest already and admit you helped destroy the economy, okay?

This is Common Sense. I’m Paul Jacob.

Categories
Accountability government transparency

Transparently Faster

If a promise is important, clear, specific — and keeping it would be honorable — well then, it’s bad to break it.

Alas, political candidates make and break such promises all the time. They make the promises to get votes, then break them from political expediency.

Usually, politicians don’t admit this. Usually, if they note the lapse at all, they plead some fictitious but awesome and unexpected impediment.

So, for example, candidate Obama’s promise that final legislation going to the president’s desk would be accessible online in every detail for a full five days before he signed it — well, that quickly went by the wayside. So has the idea of tracking every particular of so-called “stimulus” spending. Technical difficulties, they say.

Who knew the web-savvy Obama campaign would have so much trouble with “the Internets thing” once they got into power?

For some reason, however, a private company — unburdened by the rush to sign us all into permanent debt bondage — is doing much better when it comes to reporting the runaway spending. The Washington Times tells us that a firm called Onvia is tracking federal expenditures “down to the local level . . . in real-time speed.” Onvia has free software that people can use to follow the dollars.

Sounds like time for a little outsourcing.

Oh, wait, I forgot. The Obama administration is opposed to outsourcing.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability national politics & policies too much government

Enough at Tea Time

On April 15, more than 2,000 Tea Parties were held across the country, many with thousands in attendance. These weren’t dainty luncheon ceremonies. They were protests, named after our revolutionary Boston Tea Party.

In Washington, D.C., it rained like the dickens, but people still came out to say “Enough.” Regular folks sounded off. They work hard, and they’ve had enough of paying the bills for politicians and favored political interests.

Some big media personalities and major political figures showed up. Governor Rick Perry of Texas spoke at the Austin, Texas event. He’s called the federal government “oppressive.” In South Carolina, Governor Mark Sanford told folks that “Real change begins in the hearts and minds of people who are willing to stand . . . against an ever-encroaching government.”

Meanwhile, much of television news media behaved badly, trying to marginalize or even demonize the protests as “anti-government.” CNN correspondent Susan Roesgen was particularly argumentative, suggesting to one guy that he should be grateful for the $50 billion President Obama was sending to his state.

When a woman protester accused Roesgen of slanted coverage, she asked the woman why she was there. “We’re here,” the woman responded, “because we are sick and tired of the government taking our money and spending it in ways that we have no say in. We have no say whatsoever.”

And that’s what has to change. The people must be heard. Not just on one day, but every day.

This is Common sense. I’m Paul Jacob.

Categories
Accountability

Expect the Unexpected?

If we expect things to be exactly the opposite of what we expect, would we still be surprised by the unexpected? Or surprised by the expected?

You tell me.

There exist laws about how employers must treat their employees. Employers are required to offer equal opportunity. To make certain this happens, the federal government has established and funded an agency called the Equal Employment Opportunity Commission. So what employer do you think was just found guilty of willfully violating the Fair Labor Standards Act on a nationwide basis?

Yup, it’s the EEOC. The federal agency charged with protecting worker rights has been systematically violating the rights of its own workers.

We often hear calls for tougher regulation, but the problem here is regulators who can’t seem to follow their own regulations.

Here’s another bizarre case of the unexpected. The Virginia branch of PETA — that is, People for the Ethical Treatment of Animals — just filed a report about their animal shelters.

My kids have donated to no-kill shelters because they don’t like the idea of killing stray pets that don’t quickly find homes.

Well, don’t tell my kids, but PETA reports that under its “ethical treatment” 95 percent of the dogs and cats they “rescued,” were then killed.

As always, don’t listen to what folks say; watch what they do.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability insider corruption

Why Pay Your Taxes?

Why pay your taxes? I mean, why pay your taxes until you’ve been chosen for President Obama’s cabinet?

Most folks pay with little or no threat of having to serve on Obama’s brain trust.

I pay because my wife tells me to and she agrees to fill out the forms. Some folks pay because they like all or much of what government does. Others may hate the waste, folly, or unconstitutional criminality of the bulk of government spending, but pay taxes out of a sense of duty.

Or fear.

But what of those politicians who constantly put forth the importance — the glorious nobility — of granting government an ever-larger role? Why would they fail to pay their taxes to support that government?

The latest is the current nominee to head the Health and Human Services Department, Kansas Governor Kathleen Sebelius. She owes $7,000 in back taxes, which now that she’s in line to be a cabinet secretary, she’s taking care of.

House Ways and Means Committee Chairman Charles Rangel hasn’t paid his tax bill. Sebelius’s predecessor, former Senate Majority Leader Tom Daschle withdrew his nomination because of, yes, tax problems. And who can forget Treasury Secretary Tim Geithner? He paid up after he was nominated. But of course, he was “too big to fail.”

Maybe it’s how our leaders see the division of labor: We pay, they spend.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability too much government

Deep, Deep Waters

Are you surprised? I’m not surprised.

Turns out Congresswoman Maxine Waters had “family financial ties” to a bank for which she personally helped solicit bailout money. Without regard to its relative need or value to the economy.

Shocker.

Trillions in stimulus money, bailout money. And we expect politicians will allocate it according to some impersonal calculus that has nothing to do with who their chums are?

Nor can we expect the politicians and bureaucrats to sit back and let the market, or what’s left of it, function unhampered once bailout money has been forked over.

Many banks seemed to think they would simply be allowed to spend the subsidies according to their own judgment about how best to promote the health of their enterprises. But once the bailouts failed to work the instant magic they were supposed to, politicians began attaching strings. So that voters angry about the bailouts could see that there’s “accountability.”

It’s not just about trimming fat executive bonuses. The banks are also supposed to obey orders to cancel employee training, reduce dividends to shareholders, stop hiring employees from overseas, etc. This is about social engineering, not economic efficiency.

So, many banks now say they’ll give the money back. Good idea; great idea. But it would really surprise me if it found its way all the way back to taxpayers.

This is Common Sense. I’m Paul Jacob.