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Weapon Of Mass Wealth Destruction

Bloomberg has a deeply critical piece written by Kevin Hassett arguing that Obama has declared “war” on American business. This may seem like hyperbole, but the evidence bears it out:

Imagine that some hypothetical enemy state spent years preparing a “Manchurian Candidate” to destroy the U.S. economy once elected. What policies might that leader pursue?

He might discourage private capital from entering the financial sector by instructing his Treasury secretary to repeatedly promise a brilliant rescue plan, but never actually have one. Private firms, spooked by the thought of what government might do, would shy away from transactions altogether. If the secretary were smooth and played rope-a-dope long enough, the whole financial sector would be gone before voters could demand action.

Another diabolical idea would be to significantly increase taxes on whatever firms are still standing. That would require subterfuge, since increasing tax rates would be too obvious. Our Manchurian Candidate would have plenty of sophisticated ideas on changing the rules to get more revenue without increasing rates, such as auctioning off “permits.”

Now, Obama is no “Manchurian Candidate”, but he is doing everything he can to bring the economy into depression. His policy goals will continue the already unprecedented destruction of American wealth that has resulted since his elections. The markets, looking ahead to the Obama Administration, have reacted with panic. They see the future wealth-destroying effects of higher taxes, more government intrusion into the markets, a socialized system of health care, and a reckless “cap and trade” system that will push energy prices sky-high.

The markets are seeing Obama clearly for what he is: a weapon of mass wealth destruction.

If Obama wants to restore the economy, he would restore the engine of American prosperity: American business. Yet through higher taxes and more unnecessary and unneeded regulations, the Obama Administration has already put itself out as strongly anti-business. Small business owners are already trying to do whatever they can to get through the next four years, and that means continuing to stockpile rather than sell and cutting as many jobs as we can.

I have always said that liberalism will always fail because its premises are wrong. Obama has barely started to enact his agenda, and already the results speak for themselves. Into Year Two of the Obama Recession, it’s going to be very hard for the left to blame the previous President for the bad economy—not that they won’t. But the reality will be that Obama’s policies will not create wealth, they will destroy it. We will all suffer due to this reckless experimentation. What we are seeing in the markets is a clear-headed response to Obama’s policies—and the markets will continue to sink unless this nation changes its current, disastrous course.

Buyer’s Remorse

Sometimes, a concept can be so obvious that even David Brooks sees it. Brooks, the New York Times’ wishy-washy man of the Right no wakes up to the obvious and that Barack Obama is not a moderate at all and that he and the Democratic Party are engaged in an orgy of spending and ideological experimentation.

Brooks and other erstwhile conservatives—I’m looking at you, Chris Buckley—are just figuring out what should have been obvious all along: Barack Obama is not a moderate, and never was. He just played one on TV.

As Brooks puts it:

Those of us who consider ourselves moderates — moderate-conservative, in my case — are forced to confront the reality that Barack Obama is not who we thought he was. His words are responsible; his character is inspiring. But his actions betray a transformational liberalism that should put every centrist on notice. As Clive Crook, an Obama admirer, wrote in The Financial Times, the Obama budget “contains no trace of compromise. It makes no gesture, however small, however costless to its larger agenda, of a bipartisan approach to the great questions it addresses. It is a liberal’s dream of a new New Deal.”

Where were these people during the campaign? What in Obama’s background suggested that he would be anything more than a doctrinaire left-wing liberal? His Senate voting record was the most liberal in the Senate by any objective measure. He grew up in the Chicago political machine. He was raised in a comfortable liberal orthodoxy. His books are filled with grand liberal planning. He’s a devotee of left-wing radical Saul Alinsky. And yes, Gov. Palin was right, he was “pallin’ around” with such esteemed “moderates” as Rev. Jeremiah Wright and admitted left-wing terrorist Bill Ayers.

What did these “moderates” expect?

They let their own gauzy feelings dictate their choices rather than evaluating Obama as he really is. They used Obama as an empty vessel into which they poured their vision of the ideal candidate. Of course, their idealized version of Barack Obama had little do with the real Barack Obama once one gets beyond the superficial elements. They thought that because Obama was so intelligent and articulate that he wouldn’t be so radical. How little did they know…

President Obama is not a moderate. He never was, no matter how fervently ersatz conservatives like David Brooks and Chris Buckley wanted him to be. Now that Obama has power, he is showing his true spots. The real Barack Obama is the most radical President in American history, even more so than LBJ. He aims to fundamentally transform American culture and society into something akin to a European welfare state. He does not believe in limited government, he believes in the expansive state. He does not believe in moderation, but in radical transformation. He does not need the support of people like Brooks or Buckley, he has the power he needs, and he will wield it.

Obama will not listen to Brooks’ proposed “moderate manifesto”—he doesn’t need to. He has his power. He has a Congress that is equally committed to left-wing experimentation. He has a media that is utterly supplicant to him. He has a populace that has yet to see through his charming façade. The more the markets sink in reaction to his dangerous experimentation, the more he can use the crisis as a justification.

Obama’s critics were dismissed as reactionaries for not recognizing his brilliance—and now it looks like those of us who questioned the President’s much-vaunted moderation were right. Brooks and the others who were so swept away by Obama’s surface appeal are not belatedly coming to see what others saw from the beginning. The problem is that it’s too late—Obama was figuratively and literally given a blank check, and now the “moderates” no longer matter.

We’re All Merrily Skipping Down The Road To Serfdom

For those who want to know what our future will look like, here’s a brief preview. F.A. Hayek’s brilliant The Road to Serfdom in a short illustrated form.

I’ve never been more bleak about the future of this country. The road to serfdom isn’t obvious. Nobody intentionally elects a dictator for the purpose of electing a dictator. Instead they pour the ill-conceived hopes and dreams into a Leader who promises them the world so long as they give him the power to create it.

Now, I don’t necessarily think that Barack Obama is a dictator. But the point is that he doesn’t have to be. He’s just creating the ideal conditions for one. What truly saddens me, what truly sickens me, is if that Obama passed the “Fairness Doctrine” to silence his critics, created “civilian work corps” to put an army of young men and women into his service, and arrested business owners, nearly half of the county would go along. Nearly half are so filled with irrational love for Obama that they’d let him become a Caesar. It isn’t about issues, it isn’t about the country, it’s about some gauzy notion of “hope.”

To hell with “hope.”

As Charles Murray says, everything Obama is promising has already been tried and failed. There’s nothing new. This isn’t “change we can believe in” this is “I can say whatever the hell I want and you simpletons will slurp it up.” It’s the wish list of every statist in the last 40 years, and it represents a radical and dangerous turn away from tested principles and towards abject statism.

Universal healthcare? It means the government will have to ration what we get. That’s the only way such a system can possibly work. Even worse, it doesn’t scale up at all. Which means America’s larger population will make the endemic and innate problem with universal healthcare worse than in a smaller country like Sweden or even Canada. Which means that we had better get used to dying in lines, and forget risky or experimental treatments.

Universal college education? For most people, a four-year college degree is a waste of time and money. I believe in a liberal arts education, but I’m not so arrogant as to say that it’s right for everyone. But now Obama will make the value of that degree effectively zero—and a four-year college degree is already worth nowhere near what people pay for it. My suspicion is that the real reason for this is ideological: make everyone go through the like-minded public university system and you’ll have an ideologically “pure” citizenry. Even if that’s not the plan, that will be the effect. A better solution would be to make our existing system actually work, but that doesn’t concentrate any political power into the President’s hands.

A cap-and-trade system for carbon emissions? It’s already been tried and failed. It’s a way of creating a stealth tax increase on energy consumption. A more honest approach would be to just slap a tax on energy. But Obama doesn’t want to be honest, he wants to play to the mob. That cap-and-trade programs hurt the Third World doesn’t seem to matter.

I don’t like to ascribe the worst motives for people, but even so President Obama is taking this country farther down the Road to Serfdom than it even has been. It may take decades for America to recover from what he is doing. He is pouring sugar into the engine of American prosperity, and we will suffer for it.

I love this country. I want this country to succeed, regardless of who is the occupant of the Oval Office or what party is in power. But the end result of what Obama wants will be a United States that is following the disastrous path of statism. At best America will suffer a “Lost Decade” like Japan.

At worst? America takes the road to serfdom to its inevitable conclusion.

I wish this were merely sour political grapes. But the future of this country truly is in deep peril. The way to the future is through individualism, hard work, limited government, thrift, ingenuity, and political pluralism. Today, we have a President who wants a cradle-to-the-grave welfare state and has the audacity to not only hope for one, but to say it in no uncertain terms.

I fear that if we continue down this road, the future will belong to India and China, while this nation lives out its twilight years in increasing obsolescence.

Partisanship Is Democracy By Another Name

Yuval Levin has why “partisanship” is a healthy thing in a democracy:

Our deepest disagreements coalesce into two broad views of human nature that define the public life of every free society. In a crude and general way our political parties give expression to these views, and allow the roughly like-minded to pool their voices and their votes in order to turn beliefs into action.

To ridicule these disagreements and assert as our new president also did in his inaugural that “the time has come to set aside childish things” is to demean as insignificant the great debates that have formed our republic over more than two centuries. These arguments—about the proper relationship between the state and the citizen, about America’s place in the world, about the regard and protection we owe to one another, about how we might best reconcile economic prosperity and cultural vitality, national security and moral authority, freedom and virtue—are divisive questions of enormous consequence, and for all the partisanship they have engendered they are neither petty nor childish.

Levin’s words match my own thoughts on the issue. Our current working definition of “non-partisan” seems to be more based on shutting up and getting with the program than anything else. When the President calls for an end to “childish” partisan disagreements, what he means is that everyone should accept his views on the proper role of the state and be done with it. The problem with that is that a large segment of the American population doesn’t accept the basis of his worldview, and they have a legitimate right to have their voices heard.

We don’t need “non-partisanship” at this point in our history. We need vigorous partisan debate. Democratic debate is a crucible that helps extract the truth—and today’s society is becoming less about democratic debate and more about cultural balkanization. We have a media elite that is overwhelmingly uniform in their worldview. With the exception of specialized media outlets like Fox News and talk radio, conservative voices are marginalized and diminished. Not only does this harm conservatism by denying it a forum, but it diminishes liberalism as well. Without a counterbalancing force, any ideology becomes stagnant and increasingly irrelevant. Liberalism, by constantly defining itself as the only valid worldview, has ceased being a vital political philosophy. Is it any wonder than that the banner of today’s liberalism is the empty slogans of “hope” and “change” and it’s ultimate rationale the accumulation of power? When President Obama spoke with GOP members of Congress his message was simple: “I won”. While that counts for a lot in politics, winning an election does not vindicate the rightness of a worldview.

This isn’t to say that conservatism is perfect. Many, if not possibly most of conservatism’s wounds are self-inflicted. Conservatism stopped, by and large, being intellectually vital during the Bush Administration. By going along with Bush’s “compassionate conservatism”, the conservative movement lost sight of it’s small-government origins. By becoming more stridently anti-gay rather than pro-family, conservatives alienated much of their own audience. The Republican leadership that has become the standard-bearers for conservatism lost the ability to connect to the American public because they became too ingratiated with power and defending their own record. That President Bush spent most of his second term allowing the opposition to control the public imagination helped bring conservatism in America to a new low.

But liberalism is making the same mistake. At this moment, liberalism is embodied in President Obama in a way that is fundamentally unhealthy. Just as conservatism tied itself to the political fortunes of President Bush, liberalism has become the Ideology of Obama, with the President as its pontifex maximus.

This is particularly unhealthy for a democracy. The combination of ideological arrogance and a cult of personality surrounding one great leader is a dangerous thing. The President, much to his credit, has tried to create a “team of rivals” to challenge his beliefs, but has yet been able to demonstrate more than a token commitment to that end.

Instead of trying to be aloof and above-the-fray, Obama should embrace respectful partisan disagreement as part and parcel of democracy. Instead of putting himself in an ideological cocoon, Obama should engage with the conservative movement. Instead of having The Huffington Post ask him pre-approved questions at his press briefings, he should invite prominent GOP and libertarian bloggers to grill him. It would be interesting to see how he would respond to questioning from someone like Glenn Reynolds or William Safire.

Obama has the bully pulpit of the Presidency, and he has a large hand in setting the tone. If he is serious about leading this nation, and he certainly is, he should be embracing partisanship rather than decrying it. The past President was accused, probably with merit, of living in an ideological bubble. He, like Obama, promised to be a unifying leader. If the President wishes to avoid the same problems that befell his predecessor, he needs to realize that you can’t strengthen your arguments without accepting the arguments of others as valid. For all his promising talk in this regard, his Administration has scarcely wavered from Democratic politics as usual.

Democracy cannot survive in a political monoculture or in a state where only one side is given legitimacy. Liberalism needs conservatism and vice versa. Partisanship is a crucial part of a healthy democracy, and right now American democracy is increasingly unhealthy. If we are to set things right, we need more reasoned disagreement, not mindless and rigid ideological conformity.

Andrew Sullivan’s Further Descent Into Hackery

Andrew Sullivan went from being an astute conservative columnist to a frothing partisan hack somewhere around the 2004 elections. His latest column in The Sunday Times amply demonstrates his fall into hackery. Now, because the Republicans have the sheer audacity to defy the Leader and go against a budget-busting spending bill in a time of fiscal turmoil, they are akin to the Taliban.

So much for not questioning the patriotism of others.

For instance, Sullivan makes this blatantly silly argument:

From the outset, the Republicans in Washington pored over the bill to find trivial issues to make hay with. They found some small funding for HIV and sexually transmitted diseases prevention; they jumped up and down about renovating the national mall; they went nuts over a proposal – wait for it – to make some government buildings more energy-efficient; they acted as if green research and federal funds for new school building were the equivalent of funding terrorism. And this after eight years in which they managed to turn a surplus into a trillion-dollar deficit and added a cool $32 trillion to the debt the next generation will have to pay for. Every now and again their chutzpah and narcissism take one’s breath away. But it’s all they seem to know.

Which conveniently ignores the very nature of the bill—a trillion-dollar giveaway to Democratic special interests. It is hardly “narcissistic” or an act of “chutzpah” to cry foul when the Treasury is being raided in a time when America’s debts are already threatening our fiscal future. But Sullivans M.O. is already well established—Republicans are always evil schemers seeking to establish their own power while the Obama Administration is always pure of heart. His simple morality play has little to do with reality, but it is a constant struggle for Mr. Sullivan to ignore what is in front of his nose.

The Republicans are an opposition party, and they have finally rediscovered the idea that they are supposed to be the party of small and responsible government. Apparently to Sullivan, their job now is to roll over at acquiesce to whatever the Great Obama wishes them to do. That someone who so frequently quotes George Orwell cannot see the Orwellian implications of our times is distressing.

That Sullivan adds some faint condemnation of the Democrats is only due to it allowing him to show how magnanimous and post-partisan the Obama Administration is. That the Obama Administration is attempting to politicize the Census is ignored. That the Obama Administration’s attempts at partisan “compromise” is largely window dressing is ignored. The ethical scandals that surround the Obama Administration is immaterial to Sullivan’s worldview. The resignation of Sen. Gregg as Commerce Secretary? To Sullivan, this had nothing to do with the Obama Administration’s evisceration of the post in favor of having Rahm Emmanuel run the show, it was clearly an act by the Republican base.

Sullivan is capable of deep though, but he choses not to exercise it, instead going for the rhetoric of a third-string Daily Kos blogger. How tiresome must it be to be yet another unquestioning mouthpiece for the Obama Administration. One would think it to be intellectually deadening after a while. But perhaps Mr. Sullivan has become tired of thinking and would rather trade his insightfulness and relevance for the adulation of the “netroots” mob.

The loss of such a formerly insightful thinker, alas, diminishes our political rhetoric at a time when it’s at one of its lows.

Atlas Is Shrugging

The U.S. economy shed 598,000 jobs in January, the worst job loss since 1974. There is no doubt that the U.S. economy is in a state of crisis. Our government is only making it worse.

It is more than mere coincidence that this huge job loss occurred in the same month that President Obama signed the Lily Ledbetter Fair Pay Act into law. The Ledbetter Act basically means that employers can be sued for “paycheck discrimination” years after the events occurred. In Ms. Ledbetter’s case, the alleged discrimination happened so far ago that the supervisor involved had not only left the company, but died. This Act, instead of making things “fairer” for employees, puts a massive burden on employers who now have to worry about lawsuits stemming from events decades old.

This is what the business environment will be like under the Obama Administration. There will be more regulations and those regulations will be written by representatives of big industries and radical special interests. There will be higher taxes on everything from corporate income taxes to personal income taxes to the estate tax, and there is a strong possibility of a carbon tax that will raise prices on every single good that needs shipping. The web of regulations, higher taxes, and the way society is treating the very idea of entrepreneurialism is making American business falter.

The result: more lost American jobs.

This “stimulus” bill will not help. It will give hundreds of billions to political contributors, and barely anything to American small business. Big business, the ones with the lawyers and lobbyists, have already gamed the system. The Democratic Party has no room for the interests of American small business, even though their employees are half of the American workforce. The situation for American small business will be dire: not only will there be more taxes, more regulation, and more self-righteous condemnation from Washington, but the credit markets are still tight. Unless you’re in a field that will be the recipient of government spending, like health care or road construction, forget hiring employees, you have to cut expenses to the bone right now.

American jobs are being lost because we are punishing the people who create them.

President Obama and the irresponsible Congressional Democrats are pushing this recession into a depression. Their wrong-headed pro-government economic policy is turning America into a banana republic. It is crucial that they be stopped.

Atlas is shrugging, and the world is at the brink of tumbling right off.

‘Shovel Ready’ BS

Popular Mechanics has a great piece on the myth of “shovel ready” infrastructure projects:

The programs that would meet the bill’s 90-day restriction are, for the most part, an unappealing mix of projects that were either shelved after being fully designed and engineered, and have since become outmoded or irrelevant, or projects with limited scope and ambition. No one’s building a smart electric grid or revamping a water system on 90 days notice. The best example of a shovel-ready project, and what engineers believe could become the biggest recipient of the transportation-related portion of the bill’s funding, is road resurfacing—important maintenance work, but not a meaningful way to rein in a national infrastructure crisis. “In developing countries, there are roads that are so bad, they create congestion, because drivers are constantly forced to slow down,” says David Levinson, an associate professor in the University of Minnesota’s civil engineering department. “That’s not the case here. If the road’s a little bit rougher, drivers will feel it, but that’s not going to cause you to go any slower. So the economic benefit of those projects is pretty low.”

That might be acceptable to people focused purely on fostering rapid job growth‹but, ironically, such stimulus spending could fall short on that measure, as well. “In the 1930s, when you were literally building with shovels, that might have made sense. That was largely unskilled labor. Today, it’s blue collar, but it’s not unskilled,” Levinson says. “The guy brushing the asphalt back and forth is unskilled, but the guy operating the steamroller isn’t. And there’s an assumption out there that construction workers are interchangeable between residential and highway projects. But a carpenter isn’t a whole lot of help in building a road.”

It’s ironic given the I-35W bridge collapse being used as a symbol of America’s “failing infrastructure”—that collapse was the result of a design flaw that should have been spotted in the design phase. And what is our reaction to such problems? Push through a bunch of projects in a hurry rather than perform the sort of painstaking design that needs to be done before a project is truly “shovel ready.”

There is some wisdom to spending on infrastructure, but let us be honest. It won’t make a dent in the unemployment rate unless you believe that you can take a stockbroker and put her into a bulldozer and call that good enough. It won’t stimulate the economy because the money will go to government contractors who are the least affected by the economic slowdown. And what stimulus it does produce won’t be likely to come about until well after the slowdown is past. Justifying this sort of spending on the grounds of economic stimulus isn’t realistic.

If we want to spend money on infrastructure, we should do it right. That means assessing our needs in a realistic manner, spending only on projects that will make a real difference, having a realistic plan to build these projects, building them right the first time, and having a competitive bidding process to make sure that money isn’t being funneled to campaign contributors.

This bill is not about stimulus. It’s about the Democratic Party looting the future to pay off their political supporters. It is nearly 100% pure pork that will saddle the future with at least another $1,000,000,000,000 in debt—not counting interest. Even the Congressional Budget Office finds that the “stimulus” bill will just shift the costs to future generations. We can’t rob Peter to pay Paul and expect to get away with it. Recent history should demonstrate all too well why such ideas don’t work.

We need a real stimulus package, not an act of wanton irresponsibility. If President Obama were to demonstrate real leadership, he would tell Reid and Pelosi to stop playing childish partisan games and send him a bill that is nothing but stimulus and no pork—and if they refuse, he should veto it. We need real infrastructure repair, not political cronyism. The only shovel that’s ready to go is the shovel needed to clear out all the B.S. surrounding this bill.