Category: national politics & policies

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national politics & policies too much government

Can You Cut It?

Let me call to your attention a noble and popular (if perhaps slightly under-baked) political initiative launched by Congressman Eric Cantor and the House Republican Economy Recovery Working Group. It’s called YouCut. The goal is to let people vote for spending cuts they’d like to see Congress enact.

The response has been enthusiastic. Cantor reports that the first week YouCut was up and running, visitors cast an average of more than 3,000 votes an hour. People are also mailing in ideas of their own — tens of thousands of ideas.

Yet so far there have been only two “winners” of the YouCut budget-cut sweepstakes. One winning idea was to cut a redundant welfare program. The other was to drop the latest pay raise for nonmilitary federal employees. These cuts would save several billion in the short run and many more billions down the line.

Great . . . but why have only two spending-cut ideas passed muster so far? We’ve got trillions in expenditures to eliminate. And it’s really not that hard to find greasy marbled slabs in the federal budget to hack away at. YouCut’s contest rules are way too “conservative.”

Therefore, by the power vested in me as a fellow downtrodden taxpayer, I hereby authorize any and all spending cut ideas vetted by YouCut visitors that earn more than a dozen votes be judged victorious and worthy of immediate implementation.

Congratulations to all you winners.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies tax policy too much government

A Plague Upon Small Business

Those who like Big Government tend to dislike Big Business. So it must be just an unintended effect that shiny, new government programs invariably harm small businesses, aiding big ones.

There are many examples of this. Today’s comes from the biggest new kid on the block, the new health care reform.

Who wins with it? Sure isn’t small business.

The increased paperwork and added regulations especially burden smaller operations. Big corporations can more easily eat the additional costs. Small businesses, on the other hand, have to expend a greater percentage of their gross incomes to meet new requirements, and this drain on their resources means that they can’t compete as well against the big guys, toe-to-toe in the marketplace.

Worse yet, even the special tax credits tossed in small businesses’ direction serve up a thorny mess of complexity and arcane paperwork. And while the credits are scheduled to evaporate, there appears no end to soaring costs.

Finally, the new IRS 1099 reporting requirements on business-to-business transactions of $600 or more will hit small businesses hard. These new required forms are in effect a tax themselves, because the extra paperwork will cost real money.

Is this any way to improve health care? No. It’s got nothing to do with health care. It’s just a way to increase the tax take and another way Big Government helps Big Business at the expense of the little guys.

And that’s sick.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies tax policy

But He Promised

Like the rest of us, politicians can honestly change their mind about an issue.

But when a presidential candidate “firmly” pledges to, say, never act to raise taxes of any kind on families earning less than $250,000 a year, and then reneges, that doesn’t quite count. And then when, soon after being elected, the politician pretends that his earlier pledge doesn’t mean what it plainly meant — or even pretends that he never made the pledge at all — one suspects that the original promise was really a fib, a falsehood. From the get-go.

In an interview with George Stephanopoulos given last September during the health care debate, Barack Obama tried to escape his no-new-taxes pledge by asserting that the new taxes that would be imposed on Americans declining to buy health insurance under his health care plan would not in fact be taxes. With a straight face, Obama even disputed the dictionary definition of “tax” that Stephanopoulos recited to him.

Now we’re hearing from an administration official that the president never even made the pledge. According to White House Budget Director Peter Orszag, it was merely an expression of a “preference.” We’ll have to wait until a bipartisan commission (on how to tax us more) finishes its work before we learn whether it will be viable for Obama to hew to that “preference.”

Meanwhile, those who prefer truth can view the video proof of an actual pledge on YouTube.

This is Common Sense. I’m Paul Jacob.

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national politics & policies too much government

Let the Bedbugs Bite

Whenever governments interfere in the basic operation of markets, trying to “help” in some way, pretty soon an unintended effect emerges, and government must step in, again, to correct for that. And that second, corrective intervention then causes another problem, requiring yet another intervention. And so on.

This process of intervention-upon-intervention was detailed by economist Ludwig von Mises, and explained with elaborate reasoning. Since Mises’ day, the history of economic interventionism is littered with examples that reinforce Mises’ point.

Take bedbugs.

In 2008, I noted that bedbug infestations were on the rise. And that Congress was working to combat the problem with a special program.

I suggested that Congress should stay out of it.

What I didn’t know was that the Environmental Protection Agency (EPA) was hard at work . . . in effect defending bedbugs. The EPA regulates pesticides. The cheapest and most effective anti-bedbug pesticide had come up for re-registration for home use. But the company that makes it decided not to re-register. The cumbersome, bureaucratic re-testing process cost too much, taking away the company’s incentive to sell the chemical.

So now in Ohio — an apparently bedbug-conscious state — the State Senate is petitioning the EPA to get a special exemption for this one product. No word from the EPA yet.

So, if a bedbug infestation breaks out big time, don’t blame Congress for not spending enough. Blame the EPA. Or blame the body responsible for the EPA. Yup, Congress.

This is Common Sense. I’m Paul Jacob.

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First Amendment rights national politics & policies too much government

Congress Moves to Censor the Net?

The Internet is not safe. Congress wants to regulate it. The most recent idea is to sic the Federal Elections Commission on Net freedom.

Recent hearings on something called the DISCLOSE Act disclosed that the act would “extend the FEC’s control over broadcast communications to all ‘covered communications,’ including the blogosphere.” Or so say the Center for Competitive Politics’ Bradley Smith and Jeff Patch, writing on Reason.com.

It’s hard to imagine a worse idea. No groundswell of citizens demanded this. So of course Congress is considering it.

Would they really try to regulate the blogosphere?

The lead “reformers” in Congress say all they want to regulate are political ads on the Internet, not bloggers. But, as Smith and Patch note, the actual language of the current bill quite clearly leaves open the blogosphere for regulation. They also doubt the good intentions of the would-be regulators, explaining how, in the early days of McCain-Feingold advocacy, “the ‘good government’ crowd . . . denounced a deregulated Internet as a ‘loophole’ in campaign finance law, a ‘poison pill,’ ‘anti-reform’” etc.

How can respectable Americans advocate regulation of speech, as if the First Amendment did not exist? It’s as if they are baffled by plain language: “Congress shall make no law . . . abridging freedom of speech, or of the press. . . .”

How can they live with themselves?

For me, it’s a consolation to know that at least censors in Congress can still be thrown out, peacefully, with votes.

This is Common Sense. I’m Paul Jacob.

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national politics & policies too much government

Economics vs. Politician-Incurred Debt

For several years now I have worried — here on Common Sense and on Townhall — about the unsustainability of politician-incurred debt.

I’ve used the word “unsustainable” quite a few times. But too often I’ve simply called it “government debt.” I think I like “politician-incurred debt” better. For it’s politicians who have been unable to keep from over-spending.

And pretending that the consequent problem of debt is “impossible to solve in the current political climate.”

They’re wrong, of course. The “current political climate” is whatever people think and speak right now. Change the way we think and speak, and suddenly the impossible becomes possible.

But what do economists say?

Economists are notoriously able at the higher maths, such as simultaneous equations, symbolic logic and regression analysis. But the number of economists unfazed by the simple calculations to figure debt load and maintenance is almost as frightening as those figures.

Luckily, those ready to do the arithmetic of public debt are on the rise.

Take economist Veronique de Rugy.

Writing in Reason magazine, de Rugy succinctly offers up the numbers. America’s trillions in debt now surpasses half of Gross Domestic Product. Politician-incurred borrowing increasingly soaks up the limited capital available, undermining market recovery. She says politicians must “reform entitlement spending, put both military and domestic spending on the chopping block, and start selling off federal assets. Better to do it now than during a fire sale later.”

This is Common Sense. I’m Paul Jacob.

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First Amendment rights general freedom national politics & policies

Riot Cops to a Tea

Here’s a federal budget cut: Air Force One and all other presidential travel services. The prez doesn’t need to travel. Keep the Executive Entourage in Washington, DC.

This struck home to me when I saw video of police in full riot gear, called up specifically to keep Tea Party people from gathering to greet the president at an event in Quincy, Illinois.

The cops marched around and repelled the Tea Party folk, moving them back, away from the president and his admirers.

President Obama’s Secret Service and crowd control experts are carrying on the tradition of George W. Bush. I haven’t heard Orwellian talk of “free speech zones,” but that doesn’t mean that free speech or the mere waving about of signs is encouraged by the president.

Presidential outings and speeches are tightly controlled. They are now mere political events, designed to shore up the president’s party.

So there’s no reason, in the age of mass media, for American taxpayers to continue to pay for them. The president can speak in front of the camera, on radio and the Internet, and he can speak on the White House steps. But spending one more cent on presidential roamings to rally partisan troops just isn’t very American. Not if all sides aren’t allowed to participate.

What was unacceptable under Bush remains unacceptable under Obama. But I doubt if we’ll hear many on the left protest this marginalization of dissent.

Wrong crowd, I guess.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability national politics & policies too much government

Fearing Free Fall

The European Union is bailing out Greece. Fearing financial contagion, EU’s policy wizards decided to throw 100 billion euros at Greece, in tandem with demands for austerity.

New spending restrictions are tough enough to elicit the verdict of “savage” from Greece’s public employee unions. But are they “savage” enough?

The euros-to-the-rescue scheme occurred only after collapses of Portuguese and Spanish bonds. As mentioned last Friday, things aren’t good on Europe’s other southern peninsulas, either.

The “Domino Theory” remains a dominant metaphor. Once, we feared countries would fall like dominos to communism. Now, it’s like dominos into insolvency.

But propping up a tipped domino isn’t easy.

Drastic solutions, like expelling the duplicitous Greek nation-state from the EU? Not on the table. The apparent aim of the bailouts? Keep as many of the major players responsible for the fiasco in as good a shape as possible.

If, on the other hand, every politician were fired and every contract with unsustainable giveaways to public employee unions were dissolved as part of bankruptcy, might future policy makers be a little more cautious?

Meanwhile, the dominos keep falling. The day after announcing the bailout, the euro plummeted.

My question: What happens when “too big to fail” is applied not to a tiny country like Greece, but to the good ol’ US of A?

What if we’re too big to bail out?

This is Common Sense. I’m Paul Jacob.

Categories
government transparency national politics & policies

Democrats Give the Internet to the FTC?

Congress has all the backbone of a jellyfish. Tasked with sole power to declare war, it delegates such decision-making to the Executive Branch every chance it gets. The U.S. hasn’t declared war since World War II, but is now engaged in two land wars in Asia.

Further, for a long time, Congress has handed over law-writing tasks to various regulatory divisions of the Executive Branch. This may have gotten worse with the recent Democratic hegemony. Example? Congress is maneuvering to give the Internet over to the Federal Trade Commission.

Pelosi’s little platoons have hidden this momentous change in the recent banking regulation bill. But as Ed Morrissey of Hotair.com notes, the Internet had nothing to do with the recent financial collapse, another iteration of which the new bill is ostensibly designed to prevent

So why sneak this provision into an unrelated bill?

Maybe to come down on one side of the Net Neutrality debate without ever really confronting the issues.

People engaged in this debate about regulating Internet and bandwidth pricing may disagree about a lot of things, but surely they all agree that Congress should legislate for the Internet openly and honestly, not make its biggest decisions in obscure provisions of a measure that will be voted on only to solve utterly unrelated problems.

You may be thinking, FCC, FTC — does it matter? Well, I bet it really matters to some powerful Democrat. Hence the sneaky maneuvers.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

The Inglorious Mess That Is Greece

Ah, the glory that was Greece! Too bad the modern country is anything but. The nation-state of Greece is going broke, and going broke spectacularly.

And, dare I say it, instructively?

Everybody’s blaming everybody else, there. But the simple truth of the matter is that the politicians of Greece — both socialist and “conservative” — enticed citizens to go along with a sustained binge of spending, spending far beyond revenues.

And then the government lied to European Union HQ in Brussels about how much it was spending over revenues.

And, you guessed it, Greece continued to borrow even more.

Yes, public spending in Greece was more out-of-control than government spending here in America. And that’s why it’s instructive. What is happening right now to Greece is happening elsewhere in Europe — Italy, Spain, Portugal — and is on pace to happen to us, too.

Greece does have one option the good ol’ US of A doesn’t have: It can go begging to the European Union. So far, saner heads in the EU are saying “no,” but that may not last.

While we don’t have that option, Greece lacks ours: With the Euro as its standard, it’s constrained from the monetary fiddling that American leaders are tempted with. Inflation. Hyperinflation.

When things get worse here, we’ll hear talk of huge tax hikes, confiscations, and sovereign default.

But also expect a lot of what Greek politicians did: Lying.

Inglorious, eh?

This is Common Sense. I’m Paul Jacob.