Category: Obama Administration

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.

Dissent Is SO Yesterday!

David Harsanyi asks whether dissent is still patriotic in the Age of Obama. The answer, I suspect, is no. Instead, watch for any opposition to President Obama, whether measured or not, to be labeled as “divisiveness” and cast aside. As Harsanyi puts it:

Some of you must still believe that politicians are meant to serve rather than be worshiped. And there must be someone out there who considers partisanship a healthy, organic reflection of our differences rather than something to be surrendered in the name of so- called unity — which is, after all, untenable, subjective and utterly counterproductive.

President Obama’s call to unity was standard boilerplate stuff. After all, one of the mottos of this nation is E pluribus unum—”out of many, one.” But at the same time, there’s a difference between coming together as a nation and being forced to all read from the same playbook. The strength of America is in our ability to have legitimate disagreements about politics and policy while still acknowledging our common values. That is a balance, and I fear that Obama will fail to understand the difference. These passages from his Inaugural Address does not bode well:

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.

Have we? I despise the idea that one party of another has a monopoly on either hope or fear, and it’s a transparently dumb argument to make. Those of us who voted for McCain voted out of hope as well, hope for a better future in which government did not trample upon the right of the people to pursue their own happiness. Does President Obama really believe his own bull about him being a living symbol of hope? If not, are these words just more empty rhetoric, sugary words devoid of substance? Then why make them?

I suspect the answer is that Obama is a believer in his own hype, and that scares me deeply.

On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics.

Like hell we have.

Every politician plays hardball. Partisanship is inevitable in a free society, and that’s a feature, not a bug. In order for this statement to make sense, Obama must believe 1) that he is somehow above politics, which is transparently ludicrous for any politician to say; and 2) that our politics would be better if we jettisoned the “worn out dogmas” that he doesn’t like.

As a good Burkean, this makes me gag. Our politics is meaningless without the beliefs that President Obama wants to denigrate as being “worn out.” Our politics needs vital disagreement on key issues. Democracy is never about conformity, else it becomes little more than the rule of the mob. But when you’re at the head of the mob, I suppose, mob rule doesn’t sound all that bad.

We remain a young nation, but in the words of Scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.

Note what Obama is doing here. He’s first calling partisanship “childish” rather than a necessary part of vital democratic debate. He’s then wrapping himself in the mantle of the American character. It’s the classic way that a politician tries to diminish his or her opponents without appearing to do so. First you delegitimize the “other” then you wrap yourself in the values you wish to be seen as embodying. It’s a classic rhetorical trick, and Obama plays it to the hilt.

If that weren’t enough, this passage further demonstrates Obama’s feelings towards dissent:

What the cynics fail to understand is that the ground has shifted beneath them – that the stale political arguments that have consumed us for so long no longer apply. The question we ask today is not whether our government is too big or too small, but whether it works – whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified.

Hear that, all of us “cynics”? We’re too stupid to realize that now that Obama is on the scene, the question about the role of the State in our lives is no longer relevant. Now the question is not whether the government should interfere in our lives, but just how much it will take to achieve the desired ends of the left-wing nanny state. Our “stale arguments” aren’t even worth discussing, now is the Era of Government, and we are but mere roadbumps on the way.

Sadly, those words betray a worldview that would delegitimize debate. Whenever a politician speaks of “transcending politics” or whatever mumbo-jumbo they use, what they ultimately mean is that they would like their side to always prevail. Politics isn’t a flaw in our system, it is our system. The moment we start arguing that legitimate debate over issues is “childish” or decide to chuck out the “worn out dogmas” of the opposition party, we abandon the principle of democracy in for tyranny.

Not once in the speech does President Obama countenance any opposition to his worldview. Not once in his speech does Obama even admit to the legitimacy of those who see things through another lens. Rather it was entirely about how now that Obama is in charge it’s time to “remake” America, whether those cynical believers in the value of a limited government of enumerated powers like it or not.

It is one thing for America to be one nation united by common bonds of history and culture. It is another for someone to declare that their election is a triumph of hope over fear. The worst thing that could happen is that they actually start to believe that.

I will keep my “worn out” dogma and be “childish” then. We should, and must, act as a loyal opposition, never sacrificing the national interest solely to make a political point, but that does not imply rolling over for Obama’s “remade” America. In the words of another President, “aggressive fighting for the right is the noblest sport the world affords.” Just because President Obama says that the days of partisan disagreement is over will not make it so, nor should it.

The 44th President Of The United States

Congratulations to Barack Obama, the 44th President of the United States.

There will be a time to get into the rough-and-tumble of politics, but that time is later. Today is a time to celebrate the peaceful transitions of power that signal a healthy democratic republic. We tend to take these things for granted, but it is sadly still rare in this world. That we have had 230 years of free elections is a testament to the durability of our Constitution.

God bless our new President, and God bless this nation.

UPDATE: The text of President Obama’s Inaugural Address.

Obama Digs A Hole For The Economy

President-Elect Obama has chosen to embrace some of the worst economic thinking in his recently announced economic recovery plan. The buzzword he’s following is “infrastructure”—and it’s a strategy that is doomed to fail.

Reason‘s Nick Gillespie sarcastically looks at the plan:

When the history of this awful moment of bailout hysteria is written, there’ll be a chapter or 20 on the complete bogosity of what might call “the infrastructure flim-flam”—the idea that government can boostrap the economy out its funk by hiring two guys to dig a hole and a couple more to fill it in.

Don’t you see? It’s the perfect plan!, as Batman’s Riddler might exclaim. In fact, one only wonders why they don’t hire three guys to fill the holes, thereby cutting unemployment to negative-something.

There are so many flaws with Obama’s plan that one hardly knows where to begin. For one, there’s no way to “create” 2.5 million jobs through infrastructure improvements alone. Unless Obama wants to pave over Iowa, there isn’t going to be enough work to make a significant dent.

Then there’s the issue of the utility of taking a bunch of unemployed stockbrokers and autoworkers and having them pour concrete or lay cable—they’re not trained for either, and it doesn’t help them build the skills they need for the future. It’s busy-work, and it’s economically counter-productive. Something like job retraining would be valuable, not more government-run “public works” projects.

There’s also the fact that if you believe that government is more efficient at allocating goods and services than the private sector, you probably missed the whole “collapse of the Soviet Union” thing. Who will decide what “infrastructure” gets built where? A bunch of Washington nomenklatura? That creates a system where superhighways get built in places where politically powerful Congresscritters live while real needs go unmet. Government is simply not designed to do what Obama wants it to do, and as much hyperbole is there is about Obama being a “socialist” in this case his policies are the sort of thing we’d see from the leader of some banana republic. Economic troubles? Just round up some plebs and have them start digging ditches.

The Obama plan is not a viable solution. We do need better infrastructure, but not through wasteful, inefficient, and crude make-work programs. There is no future in the American economy if we start making our workers dig ditches or pour concrete rather than innovate in nanotechnology, alternative energy, or space. We need an economy for the 21st Century, and Obama keeps playing from the dusty playbook of the 1930s.

What should Obama do? What we need in this country is a high-tech economy. We need more civil engineers to design all those bridges. We need more innovation, more risk-taking, and more entrepreneurialism. What can government do? It can incentivize innovation and risk-taking. If you’re a college student and you want to be a civil engineer? Graduate in engineering and go into government service for 5 years, and you get your college loans forgiven. Obama should direct NASA to give a $1 billion prize to the first company that can demonstrate a workable prototype for a replacement for the Space Shuttle. (Limited versions of such a prize system are already in place, and helping generate high-tech jobs.) Instead of another government make-work project to lay fiber-optic cable, Obama should incentivize companies to develop wireless technologies that can help remove the need for physical connections. These are just a few examples of what would be a, dare I say it, progressive approach to this economic crisis.

But Obama, listening to the radicals of his party, is not really a “progressive” in this sense. He has picked up the failed FDR playbook and seems hell-bent on making the economy worse by embracing the same failed plans as before. We cannot bootstrap a modern economy through government spending. If that were true, the Third World wouldn’t be the Third World. Government spending always comes with prohibitively high administrative costs that creates a severe dead-weight loss on the economy. It is always less efficient than a market-based approach.

Government has a role, but it is a limited one. It can incentivize innovation, but it shouldn’t be in the business of picking winners and losers. It can support the development of a healthy economy, but it cannot create one by fiat. It can help regulate the marketplace, but it can also stifle the entrepreneurial spirit. It is a tool, like a hammer, but you shouldn’t use a hammer to fix a watch.

Obama’s economic plan is based on a fundamentally flawed view of government and the economy. No matter how well thought-out it may be, it will never achieve its objectives because of that basic flaw. Now, more than ever, we need to embrace what actually has worked, not reach back to the failures of the past. The process of economic transformation can be painful, in what the great economist Joseph Schumpeter called the process of “creative destruction”—but without that creative destruction we cannot move forward. Obama wants to move us back to the socialized economy that devastated Britain in the 1970s. If he wants to give us the “change we need” then he must realize that change cannot come from a government program, but from allowing ordinary men and women the opportunity to take risks, innovate, and succeed.

So Much For The Whole “Change” Thing…

President-Elect Obama has unveiled his national security team, and it’s hardly what his supporters would have suspected. Hillary Clinton gets the thankless job of Secretary of State, ensuring that she’ll never be President and keeping her well away from Washington. Robert Gates remains as Secretary of Defense, meaning that the chances of Obama “ending” the war in Iraq any sooner than McCain would have seem slim. Former General Jim Jones, who probably would have served in a McCain Cabinet, will be National Security Advisor.

Putting Clinton in as Secretary of State is an excellent way that she’ll be sidelined for the next four years. Secretaries of State tend not to have political careers after their service, mainly because it is nearly impossible to build up political capital when you’re rarely in the US. Not only that, but Obama knows quite well that the position will not be a very happy one. Tasking her with something like the Israel-Palestine crisis is Obama’s way of ensuring that she’ll be set up to fail from the beginning.

Keeping Gates at Defense is a smart move. The military was quite pro-McCain, and is suspicious of what Obama’s brand of “change” will be. There is little doubt that Obama will not pull us out of Iraq any faster than McCain or Bush would have. The war is largely won, and the media will happily ignore what bad news there is. The anti-war faction was played for the fools they are—Obama’s policies towards Iraq will be the same as if Bush got a third term, and keeping Gates is just one sign of that. It’s bad news for the Kossacks and Code Pink, but a smart move on the part of the President-Elect.

Gen. Jones is a strong pick for NSA. Obama needs military advisors who aren’t Wesley Clark, and Jones’ records seems relatively strong. That pick is another sign that Obama will not pull out of Iraq on an arbitrary timetable. It would be even better if Obama put Gen. Petreaus on the Joint Chiefs and Col. H.R. McMaster in at CENTCOM—it would drive the left nuts, but it would also be a continuation of Obama’s independent-minded defense policy choices.

Janet Napolitano and Eric Holder are less strong picks. Napolitano has a mixed record on immigration, and it doesn’t look like Obama has much interest in defending this nation against illegal immigration—not when they can be used to buttress Democratic numbers through voter fraud. Eric Holder made some very questionable choices with the pardon of Marc Rich, and is anti-Second Amendment. Both, however, will be confirmed, and probably by a large margin.

The Obama national security team does not stand for “change”—which is a reassuring move on his part. In a time of turmoil, making dramatic moves like pulling out of Iraq is not smart policy. Instead, Obama seems to be making pragmatic moves when it comes to foreign policy. Rather than providing a clear break with the policies of the Bush Administration, Obama is likely to continue many of them, including the Bush Doctrine.

Unsurprisingly, Victor Davis Hanson puts it adroitly:

I think we are slowly (and things of course could change) beginning in retrospect to look back at the outline of one of most profound bait-and-switch campaigns in our political history, predicated on the mass appeal of a magnetic leader rather than any principles per se. He out-Clintoned Hillary and followed Bill’s 1992 formula: A young Democrat runs on youth, popular appeal and charisma, claims the incumbent Bush caused another Great Depression and blew Iraq, and then went right down the middle with a showy leftist veneer.

At least in foreign policy, that may be the case. But the reality is that even if Obama really wanted radical change, it would be politically suicidal to do so. The world is dangerous, and getting more so by the moment. Obama the freshman Senator could play fast and loose, but President Obama will not have that luxury. Why the left may hate it, the “change we need” in terms of foreign policy may end up looking much more like “staying the course.”