Thursday, July 29, 2010

Dems Playing "Chicken" With Taxpayers

From the Washington Post:

"After 18 months of runaway spending, bailouts and takeovers, Washington Democrats are poised to allow the largest tax increase in American history to take effect next year," Rep. Mike Pence (Ind.), a member of the GOP leadership, said Saturday in the party's weekly radio address. "House Republicans will oppose this tax increase with everything we've got."


The Democrats are more interested in playing the class warfare card in the upcoming elections than doing their jobs.

This blows a hole in their argument that they're deficit hawks. They're not deficit hawks; they're deficit chickens," said Rep. Chris Van Hollen (Md.), who heads the Democratic Congressional Campaign Committee, which is tasked with defending the party's House majority.


Political posturing aside, the difference between extending all the Bush tax cuts and just those the Dems claim apply to the "middle class" is $600 billion over ten years. This is hardly chump change, but when Democrats are running up a deficit of $1.47 trillion this year alone they can hardly sell themselves as competent stewards of our nation.

Besides, lost in the dems demogogic rhetoric is the fact that many of the "rich" they are planning to soak are small business owners:

Republicans say the tax cuts are critical to bolstering a feeble economic recovery. And with unemployment at 9.5 percent, even some Democrats are queasy about raising taxes on high earners -- a category that includes many small-business owners -- when policymakers are trying to encourage them to create jobs.


When the Democrat who chairs the Senate budget committee, Conrad (D-ND) isn't drinking the class warrior Kool-Aid, President Obama has a messaging problem.

When you add the Democrats willingness to see taxes rise and their promise to address the recommendations of the president's deficit commission in a lame duck session taxpayers are about to be hit with a one-two punch:

Obama debt commission member, Republican Sen. Judd Gregg of New Hampshire, launched a scary trial balloon on ABC News. Gregg suggested the debt commission will likely recommend a massive $26.7 trillion tax increase.

Monday, July 26, 2010

From "Hope" to "It Could Be Worse", Yes He Did

Congressional Democrats are undoubtedly walking around with a newfound swagger today. The political strategists in the White House have finally settled on the message to save their House and Senate majorities: "It could be worse". First they invented the nigh impossible to verify or refute metric of jobs "created or saved" and now this. They deserve every taxpayer penny they get paid. Republicans simply can't match the Wile E Coyote caliber intellects of Axelrod, Gibbs and the rest of the White House message machine. Just look at how easily any Republican argument can be dismissed:

1)Unemployment is 9.5%, under-employment tops 20%- "It could be worse"

2)The budget deficit is $1.47 trillion- "It could be worse"

3)4 out of 5 jobs "created or saved" by the $862 billion stimulus were government jobs, leaving a private sector jobs deficit of 7 million- "It could be worse"

4)The $862 billion borrowed to pay for the stimulus that didn't stimulate won't be paid back until the year 2130- "It could be worse"

5)Our national debt will top $18.5 trillion by 2020- "It could be worse"

6)Taxpayer funded bailouts reach $3.7 trillion- "It could be worse"

7)Small businesses are about to get hammered by massive tax increases- "It could be worse"

8)Over half of Americans will lose their current health insurance due to "health care reform"- "It could be worse"

Etc.etc..

Forget the concept of the "teflon presidency", we are witnessing the dawn of the "I'm rubber and you're glue presidency". Republicans need to run focus groups of pre-K tots immediately to find a way to counter this brilliance, or risk seeing their dreams of electoral success turn into the nightmare of epic defeat this November.

Friday, July 23, 2010

LiveShot Says "Only Peasants Pay Taxes"

From the Herald:

Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I

Could the reason be that the Ocean State repealed its Boat Sales and Use Tax back in 1993, making the tiny state to the south a haven - like the Cayman Islands, Bermuda and Nassau - for tax-skirting luxury yacht owners?

Cash-strapped Massachusetts still collects a 6.25 percent sales tax and an annual excise tax on yachts. Sources say Isabel sold for something in the neighborhood of $7million, meaning Kerry saved approximately $437,500 in sales tax and an annual excise tax of about $70,000.


Plus

Isabel - Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage - was designed by Rhode Island boat designer Ted Fontaine.


Senator Kerry I get that you and the Mrs. wanted to avoid a hefty tax bill. Who wouldn't? But you ran for president demonizing companies that were "shipping jobs overseas" and you have your yacht built in New Zealand. You couldn't find a single shipyard in the U.S. that could build your pleasure boat and put some Americans to work? There is a reason that sailing trophy is called the America's Cup, we have a rich heritage of building the best boats in the world.

Now maybe the Herald is missing a major scoop here and you are planning to relocate to Newport permanently. After all, now that you lost the fight to keep Cape Wind from being built and the views in Nantucket sound will soon be despoiled, it's time to find a more pristine sailing locale. Or maybe you're growing bored coasting to re-election every six years and you believe a primary fight with "Big Sheldon" Whitehouse is just the ticket to get your mojo back?

However,if you plan on staying in MA pay your "fair share".

Friday, July 16, 2010

Daily News Calls Out Governor Patrick

To the editors' of the Newburyport Daily News, welcome to the fight.

Some excerpts:

Gov. Deval Patrick filed a bill last week seeking $28.5 million to cover appropriations for the fiscal year that just ended on June 30. It is intended to cover a variety of things, including summer jobs and the settlement of various claims. But it also includes $9.5 million to fund more than 30 collective bargaining agreements.


and

This comes on the heels of the governor backing a project labor agreement for the $750 million rehabilitation of the University of Massachusetts Boston campus. The agreement requires the use of union labor in exchange for the unions agreeing not to strike while the work is under way. But it is expected to add as much as $100 million to what it would cost if it were put out to truly competitive bidding.


Read the whole thing http://www.newburyportnews.com/opinion/x536265353/Governor-sends-wrong-message

Going Green and Bust

President Obama went to Holland, Michigan yesterday to promote another "green economy" project funded by stimulus cash. A South Korean company is receiving $151 million taxpayer dollars to build a factory that will one day hopefully employ 300 in the manufacture of batteries for electric cars. That's $500,000 per job, which for this administration is small potatoes. The Obama administration's bequeath of
$1.45 billion to Abengoa Solar is expected to create only 85 permanent jobs. Michael Graham did the math and came up with $17 million per job for that foray into creating a new economy.

Using taxpayer funds to remake an economy has been tried in Spain with disastrous results:

As for Spain's vaunted "Green Jobs program" a study by Dr. Gabriel Cardoza has found that for every green job created 2.2 jobs have been lost. Of those green jobs 2/3 were only temporary, mainly in installation and construction.


True to form in the greening of our economy, Heritage takes a look at the effects of Sec. Salazar's ban on drilling:

Heritage analyst David Kreutzer has crunched the numbers and found that a full Obama administration ban on all offshore drilling would be absolutely devastating to the U.S. economy. Between now and 2035, an offshore drilling ban would: 1) reduce GDP by $5.5 trillion; 2) reduce job growth by more than 1 million jobs by 2015 and more than 1.5 million jobs by 2030; and 3) increase the total expenditures for imported oil by nearly $737 billion.


Congress isn't about to leave all the fun in regulating our way to a new and improved economy to the Obama administration. While Cap and Trade may be dead, Harry Reid is introducing its ugly stepsister on July 26th. John Kerry's bill is being replaced by Sen. Jeff Bingaman's (D-NM) renewable electricity standard legislation (RES), which is simply CAP without the Trade. Heritage explores what it will mean if passed:

RES would: 1) raise electricity prices by 36 percent for households and 60 percent for industry; 2) cut national income (GDP) by $5.2 trillion between 2012 and 2035; 3) cut national income by $2,400 per year for a family of four; 4) reduce employment by more than 1,000,000 jobs; and 5) add more than $10,000 to a family of four’s share of the national debt by 2035.


The Green/Progressive dream of using economic policy to punish the use of fossil fuels and promote more expensive, less efficient, but "greener" technologies will cripple our economy. In essence, they are adopting the policy of the officer that insisted during the Vietnam War that "we had to destroy the village in order to save it". I hope the Obama administration and Congress come to their senses and follow the sage advice of former President George HW Bush as channeled by Dana Carvey "The first lesson of Vietnam. No more Vietnams" before too much damage is done.

If Vietnam references are too dated and President Obama has his mind set on following a Spanish model; I suggest that instead of emulating the policies of Mr. Zapatero's socialist government that have his country mired at 20% unemployment and facing bankruptcy, that he just follow Penelope Cruz on Twitter.

Thursday, July 15, 2010

Pawlenty's Principles

Minnesota Governor Tim Pawlenty takes to the pages of Politico to instruct President Obama and Congressional Democrats in the ways of fiscal accountability:

1. Set clear priorities but cut almost everything else. Not everything government does is equally important. When faced with a budget shortfall in Minnesota, we considered the importance of programs. We decided to protect funding for the most important ones: the National Guard, veterans’ support programs, public safety and K-12 schools.

2. Reform out-of-control entitlements. By far, the biggest long-term driver of the federal debt is entitlement spending, including Social Security and Medicare. These programs are going to have to be changed. And despite Beltway rhetoric, it can be done.

3. Sacrifice. Americans have sacrificed enough; it’s time for government to sacrifice for a change. When Washington Democrats talk about balancing the budget, they speak gravely about painful choices and sacrifice — but what they mean is tax increases. In other words, we sacrifice so they can spend.


Read the whole thing: http://www.politico.com/news/stories/0710/39674.html

Republicans could do much worse than Mr. Pawlenty as our nominee in 2012.

Wednesday, July 14, 2010

"Recovery Summer" Flops, Jobless Hardest Hit

It seems fitting that President Obama signed "financial reform" into law and the US Senate belatedly passed another extension of unemployment benefits on the same day. Because what the Democrats are doing in Washington D.C. is hurting economic recovery rather than helping foster growth. It's tempting to compare their actions to those of BP in the Gulf; just as folks in the Gulf states' are forced to subsist on checks from BP because of its negligence, the unemployed rely on checks from a federal government whose policies have kept them jobless. Business leaders are trying to communicate to the Obama White House that it's the Obama/Pelosi/Reid agenda that's the problem, not evil corporations who put greed and profits before people. They began their efforts last week.

Wall St. Journal

Business groups including the U.S. Chamber of Commerce, the Business Roundtable and the National Federation of Independent Businesses will air a list of concerns about government policy at a "Jobs for America Summit" at the Chamber's offices Wednesday.

The Chamber will issue an open letter to President Barack Obama asking that the administration cut taxes, act on pledges to expand export markets, and streamline government rules, according to a copy of the letter obtained by The Wall Street Journal.

On the regulatory front, "What we're looking at here is a tsunami of regulations coming online slowly because of legislation that has either been enacted or legislation that people expect in some form will be enacted," said Bruce Josten, the chamber's chief lobbyist.

The letter points out that the Environmental Protection Agency is moving forward with 29 major economic rules (a major rule would have an impact on the economy of at least $100 million) and 173 major policy rules.

Legislation overhauling financial-markets regulation now nearing passage in Congress would create more than 350 rule makings, 47 studies and 74 reports.

"You can find in these numbers a principal reason why businesses are so reluctant to make investments," the letter reads.


"Investments" is another way of saying "we won't be hiring anytime soon".These entreaties fell on deaf ears. So today business leaders took their concerns to Politico, which unlike that mouthpiece for capitalist dogs Journal, the White House views favorably.

Politico:

Corporate executives counter that the market recovery began as a result of a bank bailout that predates Obama and that the bulk of corporate profits in recent quarters have come not from business expansion but from massive layoffs and cost cutting.

And they do not see a friendly environment for job creation ahead, citing a possible credit crunch and an exploding budget deficit saddled by more health care spending.

“What I think bothers businesspeople is, they feel like they have a multitude of new regulations to comply with, and now they have to hire compliance experts and lawyers and other cost-generating personnel rather than revenue-generating workers,” said Scott Shay, chairman of Signature Bank, which has $10 billion in assets and serves companies in the New York metro area.

“When the devil is in the details, when you are dealing with a lot of new regulation at a time when we desperately need to be [generating] revenue-creating jobs rather than cost-center jobs, it causes concern. I hear it time and time again: ‘Give us broad rules, but don’t micromanage us like this.’”


and

“There is still a great deal of anxiety over the demonization of business, and it is a serious problem” for Obama, said Mort Zuckerman, the billionaire chairman of Boston Properties and owner of the New York Daily News, who has long supported Democrats.

Executives “really feel there is a deliberate attempt, as a populist political measure, to blame the business world for all the problems we have been having, when, in reality, the housing bubble was provoked by Fannie Mae and Freddie Mac. And it wasn’t business or the public that lowered interest rates and created the credit bubble. It was the Federal Reserve.”


American companies are collectively sitting on $1.8 trillion and with unemployment at 9.5%, the White House needs a target for voters to blame, instead of Congressional Democrats. The problem is, it's not only big business that is refusing to put out the Help Wanted signs.

From Reuters:

Small businesses grew more pessimistic about their economic outlook in June in the face of weak sales and political uncertainty, the National Federal of Independent Businesses said on Tuesday.

The NFIB's monthly survey of members showed the small business optimism index fell by 3.2 points in June, dipping to 89, after posting several months of gains.

"Seventy percent of the decline this month resulted from a deterioration in the outlook for business conditions and real sales gains," the NFIB survey concluded. The report is based on 805 responses to a random survey of NFIB members.

"The performance of the economy is mediocre at best, given the extent of the decline over the past two years," the NFIB survey concluded. "Pent-up demand should be immense, but it is not triggering a rapid pickup in economic activity."

Very few small businesses plan to create new jobs, according to respondents. The survey showed that only 10 percent of firms plan new hiring, that is down 4 points from May, the NFIB said. About 8 percent of firms plan to reduce their workforce, up one point from the previous month, the group said.


If you prefer visuals, this graph shows how the Obama/Pelosi/Reid agenda is redefining the term "jobless recovery". Actually, they are doing their best to bring the terms "double-dip recession" and "stagflation" back into vogue.

http://www.theatlantic.com/business/archive/2010/07/the-scariest-unemployment-graph-ive-seen-yet/60086/

Tuesday, July 13, 2010

Miscarriage At Justice



This is the fellow that had his case dropped, after it had been won by Eric Holder's cronies in the Justice Department.

The Democrats in Congress refuse to investigate the dismissal of charges against the members of the New Black Panther Party. Until Republicans take back at least one house of Congress the rampant politicization of the Justice Department under Eric Holder and by extension President Obama will go unpunished. Just like the members of the New Black Panther Party.

Deroy Murdock encapsulates the case well:

When they ignored late-term Bush administration charges of Voting Rights Act violations, federal district judge Stewart Dalzell issued a default ruling against Shabazz, Jackson, the New Black Panther Party, and its chairman, Malik Zulu Shabazz (no relation to the other Shabazz). Although career federal prosecutors won this case (arguing, among other things, that “There is never a good reason to bring a billy club to a polling station”), they were overruled by political appointees in Obama’s Justice Department who ordered them to dismiss the complaints against all parties except King Samir Shabazz. He was ordered not to exhibit a weapon within 100 feet of a Philadelphia precinct through Nov. 15, 2012. Pittsburgh seems fair game.

The May 15, 2009 case dismissal was timed perfectly for Jerry Jackson. During the 2008 incident, he was an elected member of Philadelphia’s 14th Ward Democratic Committee and a credentialed poll watcher for the Democratic Party and the Obama campaign. With the federal case safely behind him, Jackson watched the polls again in municipal elections on May 19, 2009.

Friday, July 9, 2010

Tax Hikes For All

Calling for a "rollback" of the tax cuts for "the wealthy" has been a populist mantra for President Obama and his allies in Congress. As with much of our president's rhetoric, the gulf between his promises and reality is rather wide. The truth is that come January most Americans, not just the rich, will see their taxes increase. The folks at smartmoney.com have looked at what will happen when the tax cuts expire:

You may have been led to believe that only individuals in the top two brackets will face higher federal income taxes when the Bush cuts go bye-bye. Not true!Just a few months ago, it seemed like a safe bet that Congress would make a fix to keep the existing 10%, 15%, 25% and 28% rate brackets to help out lower and middle-income folks. That bet is now looking iffy.


Are you married? Your taxes are going up. A senior citizen with investment income? Your taxes are going up.

Their bottom line:

The Bush tax cuts don't just offer tax relief to the wealthiest Americans. They offer it to just about anyone who pays federal income taxes.


The Democrat majorities in Congress aren't simply contenting themselves by letting tax cuts expire, they are seeking new ways to tax the American public. The borrow and spend spree they have been on since January 09 is just the beginning of their plans for an ever bigger government. When President Obama came to office our national debt equaled 40% of our Gross Domestic Product(GDP), at the end of this year it will be 62%. The president's budget blueprint calls for increasing the debt by a further $10-12 trillion over the next ten years. To pay for all this spending the Democrats have floated two ideas to find the revenue to pay for a government as big as their dreams.

The first is to enact a value added tax(VAT). This tax is very popular in Europe because being based on consumption, it's paid by rich and poor alike. Dictionary.com has the following definition for VAT:

a tax levied at each addition of value in the processing of a raw material, the performance of a service, or the production and distribution of a commodity with each payer except the consumer reimbursed from payment at the next stage.

Their latest brainstorm has been dubbed the ATM tax.This is from The Hill newspaper:

One idea for raising taxes to pay down the debt is the bill introduced this February by Rep. Chaka Fattah (D-Pa.). His “Debt Free America Act” (H.R. 4646) would impose a 1 percent “transaction tax” on every financial transaction — whether paid by cash, credit card or any form of financial transfer, the only exception being transactions involving the purchase or sale of stock. Theoretically, everyone would pay one cent on the dollar for every such transaction in America every day — whether $3 million on a $300 million business acquisition, $300 on the purchase of a $30,000 car, or $5 on a $500 ATM withdrawal.


The Democrats are pushing this idea because it would represent a revenue bonanza for big government.

Using 2008 numbers as an example: There was $755 trillion in total transactions that year. If you deduct the exempted $312 million in stock transactions, that leaves $443trillion in new revenues


What it means for Americans is a quadruple tax whammy. Not only will your income taxes increase, you'll be taxed an extra 1% on what's left when you deposit your paycheck. Also, thanks to the VAT, everything you buy: food, shelter, transportation etc. will cost more, plus the 1% transaction tax.

President Obama promised to "spread the wealth around", but what he's doing with the aid of Congress is to spread the debt around. Very soon, it will be the incomes of the working and middle classes as well as the poor that gets "redistributed" to Washington D.C. along with those of the rich.

Speaker Pelosi is planning a very busy lame duck session after November's election. Every member of Congress, whether they are on the ballot this Fall or not, should answer if they support passage of the VAT and ATM taxes.

Thursday, July 8, 2010

The Prez Gets His Ration-Man

President Obama, complaining about phantom efforts to stall Dr. Berwick's appointment to head the Centers for Medicare and Medicaid Services(CMS) simply installed him to the post while the Senate is out of town for two weeks. It isn't just Republicans that are outraged by the president's maneuver.

"I'm troubled that, rather than going through the standard nomination process, Dr. Berwick was recess-appointed," said Senate Finance Committee Chairman Max Baucus, Montana Democrat. The Senate confirmation process, he added, is a check on executive power and "ensures that crucial questions are asked of the nominee - and answered."


The truth is that Republicans were pushing for a nomination hearing for Dr. Berwick, it was the Democrats that were stalling. They were stalling to keep the American people in the dark about the policies Dr. Berwick advocates and that their "health care reform" will make inevitable.

Dr. Berwick's views:

In 2009 Dr. Berwick told Biotechnology Healthcare: "NICE is extremely effective and a conscientious and valuable knowledge-building system. ... The decision is not whether or not we will ration care - the decision is whether we will ration with our eyes open."


NICE is the rationing board in Britain's National Health Service. He goes on to explain why a rationed system is superior to our market-based model:

“Please don’t put your faith in market forces,” he said (italics in original). “It’s a popular idea: that Adam Smith’s invisible hand would do a better job of designing care than leaders with plans can. I find little evidence that market forces relying on consumers choosing among an array of products, with competitors fighting it out, leads to the healthcare system you want and need. In the US, competition is a major reason for our duplicative, supply driven, fragmented care system.”

Berwick argued that purposely provided an inadequate supply of health-care—as Britain’s health-care system does—is superior to allowing the market to provide an excess.

“In America, the best predictor of cost is supply; the more we make, the more we use—hospi­tal beds, consultancy services, procedures, diagnostic tests,” Dr. Berwick wrote. “… Here, you choose a harder path. You plan the supply; you aim a bit low; you prefer slightly too lit­tle of a technology or a service to too much; then you search for care bottlenecks and try to relieve them.”


What results can we expect from intentionally limiting the supply of health care?

Britain, has one of the lowest cancer survival rates in the Western world. While 60.3% of men and 61.7% of women in Sweden survive a cancer diagnosis, in Britain the figure ranges between 40.2% to 48.1% for men and 48% to 54.1% for women. And NICE's rationing has not just hit cancer patients. Doctors have warned that patients with terminal illnesses are being made to die prematurely under the NHS rationing scheme. And according to the Patients Association, one million NHS patients have been the victims of appalling care in hospitals across Britain.


Considering his championing of NICE's rationing policies, Dr. Berwick is the perfect person to supervise the $500 billion in cuts to Medicare that are mandated by our new health care law. It's a shame that Democrats by avoiding an open debate about the effects of their takeover of our health care system are keeping the American people in the dark.

Seniors should know that in Obama's America you better not get sick, because to paraphrase the Soup Nazi, "No medical care for You!".

Tuesday, July 6, 2010

Mission Creep At NASA

Does President Obama see America going back to the Moon? Nope. Mars? Nope. NASA's new mission is to make Muslims feel good about themselves:

“When I became the NASA administrator, [Obama] charged me with three things,” NASA head Charles Bolden said in a recent interview with the Middle Eastern news network al-Jazeera. “One, he wanted me to help re-inspire children to want to get into science and math; he wanted me to expand our international relationships; and third, and perhaps foremost, he wanted me to find a way to reach out to the Muslim world and engage much more with dominantly Muslim nations to help them feel good about their historic contribution to science, math, and engineering.”


Unbelievable.

In Saudi Arabia women are prohibited from driving a car, much less a space shuttle. Since President Obama wants NASA to stop sending men and women into space anyway, I guess we've already adopted Saudi policy.

Saturday, July 3, 2010

Happy Independence Day

Silent Cal's take on the meaning of The Declaration of Independence and our Constitution. For a man of few words, he could let it rip when inspired.

Speech on the Occasion of the One Hundred and Fiftieth Anniversary of the Declaration of Independence

Calvin Coolidge
July 5, 1926
Philadelphia, Pennsylvania

We meet to celebrate the birthday of America. The coming of a new life always excites our interest. Although we know in the case of the individual that it has been an infinite repetition reaching back beyond our vision, that only makes it the more wonderful. But how our interest and wonder increase when we behold the miracle of the birth of a new nation. It is to pay our tribute of reverence and respect to those who participated in such a mighty event that we annually observe the fourth day of July. Whatever may have been the impression created by the news which went out from this city on that summer day in 1776, there can be no doubt as to the estimate which is now placed upon it. At the end of 150 years the four corners of the earth unite in coming to Philadelphia as to a holy shrine in grateful acknowledgement of a service so great, which a few inspired men here rendered to humanity, that it is still the preeminent support of free government throughout the world.

Although a century and a half measured in comparison with the length of human experience is but a short time, yet measured in the life of governments and nations it ranks as a very respectable period. Certainly enough time has elapsed to demonstrate with a great deal of thoroughness the value of our institutions and their dependability as rules for the regulation of human conduct and the advancement of civilization. They have been in existence long enough to become very well seasoned. They have met, and met successfully, the test of experience.

It is not so much then for the purpose of undertaking to proclaim new theories and principles that this annual celebration is maintained, but rather to reaffirm and reestablish those old theories and principles which time and the unerring logic of events have demonstrated to be sound. Amid all the clash of conflicting interests, amid all the welter of partisan politics, every American can turn for solace and consolation to the Declaration of independence and the Constitution of the United States with the assurance and confidence that those two great charters of freedom and justice remain firm and unshaken. Whatever perils appear, whatever dangers threaten, the Nation remains secure in the knowledge that the ultimate application of the law of the land will provide an adequate defense and protection.

It is little wonder that people at home and abroad consider Independence Hall as hallowed ground and revere the Liberty Bell as a sacred relic. That pile of bricks and mortar, that mass of metal, might appear to the uninstructed as only the outgrown meeting place and the shattered bell of a former time, useless now because of more modern conveniences, but to those who know they have become consecrated by the use which men have made of them. They have long been identified with a great cause. They are the framework of a spiritual event. The world looks upon them, because of their associations of one hundred and fifty years ago, as it looks upon the Holy Land because of what took place there nineteen hundred years ago. Through use for a righteous purpose they have become sanctified.

It is not here necessary to examine in detail the causes which led to the American Revolution. In their immediate occasion they were largely economic. The colonists objected to the navigation laws which interfered with their trade, they denied the power of Parliament to impose taxes which they were obliged to pay, and they therefore resisted the royal governors and the royal forces which were sent to secure obedience to these laws. But the conviction is inescapable that a new civilization had come, a new spirit had arisen on this side of the Atlantic more advanced and more developed in its regard for the rights of the individual than that which characterized the Old World. Life in a new and open country had aspirations which could not be realized in any subordinate position. A separate establishment was ultimately inevitable. It had been decreed by the very laws of human nature. Man everywhere has an unconquerable desire to be the master of his own destiny.

We are obliged to conclude that the Declaration of Independence represented the movement of a people. It was not, of course, a movement from the top. Revolutions do not come from that direction. It was not without the support of many of the most respectable people in the Colonies, who were entitled to all the consideration that is given to breeding, education, and possessions. It had the support of another element of great significance and importance to which I shall later refer. But the preponderance of all those who occupied a position which took on the aspect of aristocracy did not approve of the Revolution and held toward it an attitude either of neutrality or open hostility. It was in no sense a rising of the oppressed and downtrodden. It brought no scum to the surface, for the reason that colonial society had developed no scum. The great body of the people were accustomed to privations, but they were free from depravity. If they had poverty, it was not of the hopeless kind that afflicts great cities, but the inspiring kind that marks the spirit of the pioneer. The American Revolution represented the informed and mature convictions of a great mass of independent, liberty-loving, God-fearing people who knew their rights, and possessed the courage to dare to maintain them.

The Continental Congress was not only composed of great men, but it represented a great people. While its members did not fail to exercise a remarkable leadership, they were equally observant of their representative capacity. They were industrious in encouraging their constituents to instruct them to support independence. But until such instructions were given they were inclined to withhold action.

While North Carolina has the honor of first authorizing its delegates to concur with other Colonies in declaring independence, it was quickly followed by South Carolina and Georgia, which also gave general instructions broad enough to include such action. But the first instructions which unconditionally directed its delegates to declare for independence came from the great Commonwealth of Virginia. These were immediately followed by Rhode Island and Massachusetts, while the other Colonies, with the exception of New York, soon adopted a like course.

This obedience of the delegates to the wishes of their constituents, which in some cases caused them to modify their previous positions, is a matter of great significance. It reveals an orderly process of government in the first place; but more than that, it demonstrates that the Declaration of Independence was the result of the seasoned and deliberate thought of the dominant portion of the people of the Colonies. Adopted after long discussion and as the result of the duly authorized expression of the preponderance of public opinion, it did not partake of dark intrigue or hidden conspiracy. It was well advised. It had about it nothing of the lawless and disordered nature of a riotous insurrection. It was maintained on a plane which rises above the ordinary conception of rebellion. It was in no sense a radical movement but took on the dignity of a resistance to illegal usurpations. It was conservative and represented the action of the colonists to maintain their constitutional rights which from time immemorial had been guaranteed to them under the law of the land.

When we come to examine the action of the Continental Congress in adopting the Declaration of Independence in the light of what was set out in that great document and in the light of succeeding events, we can not escape the conclusion that it had a much broader and deeper significance than a mere secession of territory and the establishment of a new nation. Events of that nature have been taking place since the dawn of history. One empire after another has arisen, only to crumble away as its constituent parts separated from each other and set up independent governments of their own. Such actions long ago became commonplace. They have occurred too often to hold the attention of the world and command the admiration and reverence of humanity. There is something beyond the establishment of a new nation, great as that event would be, in the Declaration of Independence which has ever since caused it to be regarded as one of the great charters that not only was to liberate America but was everywhere to ennoble humanity.

It was not because it was proposed to establish a new nation, but because it was proposed to establish a nation on new principles, that July 4, 1776, has come to be regarded as one of the greatest days in history. Great ideas do not burst upon the world unannounced. They are reached by a gradual development over a length of time usually proportionate to their importance. This is especially true of the principles laid down in the Declaration of Independence. Three very definite propositions were set out in its preamble regarding the nature of mankind and therefore of government. These were the doctrine that all men are created equal, that they are endowed with certain inalienable rights, and that therefore the source of the just powers of government must be derived from the consent of the governed.

If no one is to be accounted as born into a superior station, if there is to be no ruling class, and if all possess rights which can neither be bartered away nor taken from them by any earthly power, it follows as a matter of course that the practical authority of the Government has to rest on the consent of the governed. While these principles were not altogether new in political action, and were very far from new in political speculation, they had never been assembled before and declared in such a combination. But remarkable as this may be, it is not the chief distinction of the Declaration of Independence. The importance of political speculation is not to be under-estimated, as I shall presently disclose. Until the idea is developed and the plan made there can be no action.

It was the fact that our Declaration of Independence containing these immortal truths was the political action of a duly authorized and constituted representative public body in its sovereign capacity, supported by the force of general opinion and by the armies of Washington already in the field, which makes it the most important civil document in the world. It was not only the principles declared, but the fact that therewith a new nation was born which was to be founded upon those principles and which from that time forth in its development has actually maintained those principles, that makes this pronouncement an incomparable event in the history of government. It was an assertion that a people had arisen determined to make every necessary sacrifice for the support of these truths and by their practical application bring the War of Independence to a successful conclusion and adopt the Constitution of the United States with all that it has meant to civilization.

The idea that the people have a right to choose their own rulers was not new in political history. It was the foundation of every popular attempt to depose an undesirable king. This right was set out with a good deal of detail by the Dutch when as early as July 26, 1581, they declared their independence of Philip of Spain. In their long struggle with the Stuarts the British people asserted the same principles, which finally culminated in the Bill of Rights deposing the last of that house and placing William and Mary on the throne. In each of these cases sovereignty through divine right was displaced by sovereignty through the consent of the people. Running through the same documents, though expressed in different terms, is the clear inference of inalienable rights. But we should search these charters in vain for an assertion of the doctrine of equality. This principle had not before appeared as an official political declaration of any nation. It was profoundly revolutionary. It is one of the corner stones of American institutions.

But if these truths to which the declaration refers have not before been adopted in their combined entirety by national authority, it is a fact that they had been long pondered and often expressed in political speculation. It is generally assumed that French thought had some effect upon our public mind during Revolutionary days. This may have been true. But the principles of our declaration had been under discussion in the Colonies for nearly two generations before the advent of the French political philosophy that characterized the middle of the eighteenth century. In fact, they come from an earlier date. A very positive echo of what the Dutch had done in 1581, and what the English were preparing to do, appears in the assertion of the Rev. Thomas Hooker of Connecticut as early as 1638, when he said in a sermon before the General Court that--

"The foundation of authority is laid in the free consent of the people"

"The choice of public magistrates belongs unto the people by God�s own allowance."

This doctrine found wide acceptance among the nonconformist clergy who later made up the Congregational Church. The great apostle of this movement was the Rev. John Wise, of Massachusetts. He was one of the leaders of the revolt against the royal governor Andros in 1687, for which he suffered imprisonment. He was a liberal in ecclesiastical controversies. He appears to have been familiar with the writings of the political scientist, Samuel Pufendorf, who was born in Saxony in 1632. Wise published a treatise, entitled "The Church�s Quarrel Espoused," in 1710, which was amplified in another publication in 1717. In it he dealt with the principles of civil government. His works were reprinted in 1772 and have been declared to have been nothing less than a textbook of liberty for our Revolutionary fathers.

While the written word was the foundation, it is apparent that the spoken word was the vehicle for convincing the people. This came with great force and wide range from the successors of Hooker and Wise, It was carried on with a missionary spirit which did not fail to reach the Scotch-Irish of North Carolina, showing its influence by significantly making that Colony the first to give instructions to its delegates looking to independence. This preaching reached the neighborhood of Thomas Jefferson, who acknowledged that his "best ideas of democracy" had been secured at church meetings.

That these ideas were prevalent in Virginia is further revealed by the Declaration of Rights, which was prepared by George Mason and presented to the general assembly on May 27, 1776. This document asserted popular sovereignty and inherent natural rights, but confined the doctrine of equality to the assertion that "All men are created equally free and independent." It can scarcely be imagined that Jefferson was unacquainted with what had been done in his own Commonwealth of Virginia when he took up the task of drafting the Declaration of Independence. But these thoughts can very largely be traced back to what John Wise was writing in 1710. He said, "Every man must be acknowledged equal to every man." Again, "The end of all good government is to cultivate humanity and promote the happiness of all and the good of every man in all his rights, his life, liberty, estate, honor, and so forth . . . ." And again, "For as they have a power every man in his natural state, so upon combination they can and do bequeath this power to others and settle it according as their united discretion shall determine." And still again, "Democracy is Christ�s government in church and state." Here was the doctrine of equality, popular sovereignty, and the substance of the theory of inalienable rights clearly asserted by Wise at the opening of the eighteenth century, just as we have the principle of the consent of the governed stated by Hooker as early as 1638.

When we take all these circumstances into consideration, it is but natural that the first paragraph of the Declaration of Independence should open with a reference to Nature�s God and should close in the final paragraphs with an appeal to the Supreme Judge of the world and an assertion of a firm reliance on Divine Providence. Coming from these sources, having as it did this background, it is no wonder that Samuel Adams could say "The people seem to recognize this resolution as though it were a decree promulgated from heaven."

No one can examine this record and escape the conclusion that in the great outline of its principles the Declaration was the result of the religious teachings of the preceding period. The profound philosophy which Jonathan Edwards applied to theology, the popular preaching of George Whitefield, had aroused the thought and stirred the people of the Colonies in preparation for this great event. No doubt the speculations which had been going on in England, and especially on the Continent, lent their influence to the general sentiment of the times. Of course, the world is always influenced by all the experience and all the thought of the past. But when we come to a contemplation of the immediate conception of the principles of human relationship which went into the Declaration of Independence we are not required to extend our search beyond our own shores. They are found in the texts, the sermons, and the writings of the early colonial clergy who were earnestly undertaking to instruct their congregations in the great mystery of how to live. They preached equality because they believed in the fatherhood of God and the brotherhood of man. They justified freedom by the text that we are all created in the divine image, all partakers of the divine spirit.

Placing every man on a plane where he acknowledged no superiors, where no one possessed any right to rule over him, he must inevitably choose his own rulers through a system of self-government. This was their theory of democracy. In those days such doctrines would scarcely have been permitted to flourish and spread in any other country. This was the purpose which the fathers cherished. In order that they might have freedom to express these thoughts and opportunity to put them into action, whole congregations with their pastors had migrated to the colonies. These great truths were in the air that our people breathed. Whatever else we may say of it, the Declaration of Independence was profoundly American.

If this apprehension of the facts be correct, and the documentary evidence would appear to verify it, then certain conclusions are bound to follow. A spring will cease to flow if its source be dried up; a tree will wither if its roots be destroyed. In its main features the Declaration of Independence is a great spiritual document. It is a declaration not of material but of spiritual conceptions. Equality, liberty, popular sovereignty, the rights of man these are not elements which we can see and touch. They are ideals. They have their source and their roots in the religious convictions. They belong to the unseen world. Unless the faith of the American people in these religious convictions is to endure, the principles of our Declaration will perish. We can not continue to enjoy the result if we neglect and abandon the cause.

We are too prone to overlook another conclusion. Governments do not make ideals, but ideals make governments. This is both historically and logically true. Of course the government can help to sustain ideals and can create institutions through which they can be the better observed, but their source by their very nature is in the people. The people have to bear their own responsibilities. There is no method by which that burden can be shifted to the government. It is not the enactment, but the observance of laws, that creates the character of a nation.

About the Declaration there is a finality that is exceedingly restful. It is often asserted that the world has made a great deal of progress since 1776, that we have had new thoughts and new experiences which have given us a great advance over the people of that day, and that we may therefore very well discard their conclusions for something more modern. But that reasoning can not be applied to this great charter. If all men are created equal, that is final. If they are endowed with inalienable rights, that is final. If governments derive their just powers from the consent of the governed, that is final. No advance, no progress can be made beyond these propositions. If anyone wishes to deny their truth or their soundness, the only direction in which he can proceed historically is not forward, but backward toward the time when there was no equality, no rights of the individual, no rule of the people. Those who wish to proceed in that direction can not lay claim to progress. They are reactionary. Their ideas are not more modern, but more ancient, than those of the Revolutionary fathers.

In the development of its institutions America can fairly claim that it has remained true to the principles which were declared 150 years ago. In all the essentials we have achieved an equality which was never possessed by any other people. Even in the less important matter of material possessions we have secured a wider and wider distribution of wealth. The rights of the individual are held sacred and protected by constitutional guaranties, which even the Government itself is bound not to violate. If there is any one thing among us that is established beyond question, it is self-government--the right of the people to rule. If there is any failure in respect to any of these principles, it is because there is a failure on the part of individuals to observe them. We hold that the duly authorized expression of the will of the people has a divine sanction. But even in that we come back to the theory of John Wise that "Democracy is Christ�s government." The ultimate sanction of law rests on the righteous authority of the Almighty.

On an occasion like this a great temptation exists to present evidence of the practical success of our form of democratic republic at home and the ever-broadening acceptance it is securing abroad. Although these things are well known, their frequent consideration is an encouragement and an inspiration. But it is not results and effects so much as sources and causes that I believe it is even more necessary constantly to contemplate. Ours is a government of the people. It represents their will. Its officers may sometimes go astray, but that is not a reason for criticizing the principles of our institutions. The real heart of the American Government depends upon the heart of the people. It is from that source that we must look for all genuine reform. It is to that cause that we must ascribe all our results.

It was in the contemplation of these truths that the fathers made their declaration and adopted their Constitution. It was to establish a free government, which must not be permitted to degenerate into the unrestrained authority of a mere majority or the unbridled weight of a mere influential few. They undertook the balance these interests against each other and provide the three separate independent branches, the executive, the legislative, and the judicial departments of the Government, with checks against each other in order that neither one might encroach upon the other. These are our guaranties of liberty. As a result of these methods enterprise has been duly protected from confiscation, the people have been free from oppression, and there has been an ever-broadening and deepening of the humanities of life.

Under a system of popular government there will always be those who will seek for political preferment by clamoring for reform. While there is very little of this which is not sincere, there is a large portion that is not well informed. In my opinion very little of just criticism can attach to the theories and principles of our institutions. There is far more danger of harm than there is hope of good in any radical changes. We do need a better understanding and comprehension of them and a better knowledge of the foundations of government in general. Our forefathers came to certain conclusions and decided upon certain courses of action which have been a great blessing to the world. Before we can understand their conclusions we must go back and review the course which they followed. We must think the thoughts which they thought. Their intellectual life centered around the meeting-house. They were intent upon religious worship. While there were always among them men of deep learning, and later those who had comparatively large possessions, the mind of the people was not so much engrossed in how much they knew, or how much they had, as in how they were going to live. While scantily provided with other literature, there was a wide acquaintance with the Scriptures. Over a period as great as that which measures the existence of our independence they were subject to this discipline not only in their religious life and educational training, but also in their political thought. They were a people who came under the influence of a great spiritual development and acquired a great moral power.

No other theory is adequate to explain or comprehend the Declaration of Independence. It is the product of the spiritual insight of the people. We live in an age of science and of abounding accumulation of material things. These did not create our Declaration. Our Declaration created them. The things of the spirit come first. Unless we cling to that, all our material prosperity, overwhelming though it may appear, will turn to a barren sceptre in our grasp. If we are to maintain the great heritage which has been bequeathed to us, we must be like-minded as the fathers who created it. We must not sink into a pagan materialism. We must cultivate the reverence which they had for the things that are holy. We must follow the spiritual and moral leadership which they showed. We must keep replenished, that they may glow with a more compelling flame, the altar fires before which they worshiped.

Thursday, July 1, 2010

Dems Mis-Placed Priorities

Ronald Reagan attempted to "starve the beast" by cutting taxes and hoping a Democratic majority in the U.S. House would go along with his efforts to cut federal spending. The result, large budget deficits and a growing national debt.

Now that Democrats have large majorities in both the House and Senate and control of the White House the plan is to "gorge the beast". In effect, increase spending to the point that taxes have to be raised. So far their plan is going swimmingly.

CNN writes up the CBO Director's testimony:

Douglas Elmendorf, chief budget cruncher for Congress, got to play the role of bad-news bear before the president's bipartisan fiscal commission on Wednesday.

His job: Present the Congressional Budget Office's latest assessment of the long-term federal budget.

The gist of his testimony went something like this: The outlook is bad under current law and daunting if many current policies are extended as expected. And even that may understate the fiscal problem the country faces, because it doesn't factor in potential effects of debt on economic growth.

Under the rosiest scenario painted by Elmendorf, the debt held by the public is on track to rise to 80% in 2035 from 62% at the end of this year. At that point, interest payments on that debt would jump to 4% of GDP, up from roughly 1% today. That's the equivalent of a third of all federal revenue.

Based on current policies, debt held by the public would hit 185% of GDP in 2035. And interest payments on that debt would jump to nearly 9% of GDP.


Why should the average American care about the national debt anyway?

The larger the debt burden grows, the less money there will be for domestic investment. That, in turn, can suppress income growth and economic growth, which then reduces tax revenue.


Which as Vice President Biden would say it's all about that important three letter word "Jobs", "Jobs", "Jobs".

Mr. Elmenorf's suggestion?

The only way to bring the federal budget into better balance would be to sharply reduce U.S. spending, drastically increase taxes to rates never before seen in the United States or some less dramatic combination of the two, Elmendorf said.


So, where do the Democrats plan to cut spending? Our national defense. This take on Barney Frank's wishlist comes from the Daily Caller:

The Obama administration intends to slash the defense budget in order to pay for its riotous spending on bailouts, “stimulus bills,” their signature healthcare program, and massive pork bribes for votes from congressmen who hopefully will not survive this November’s balloting. To continue the spending spree, the White House plans to eliminate over a trillion defense dollars in the next ten years. Details of those proposed cuts were laid out by Rep. Barney Frank’s (D-MA) Sustainable Defense Task Force in a 56 page report titled: Debt, Deficits, & Defense – A Way Forward. None of the service arms are spared.

The Navy will be reduced to eight aircraft carriers (from twelve planned) and seven air wings. Eight ballistic missile submarines will be cut from the planned force of 14, leaving just six. Building of nuclear attack submarines will be cut in half, leaving a force of 40 by 2020. The four active guided missile submarines would be cut, too. Destroyer building would be frozen and the new DDG-1000 destroyer program cancelled. Among other huge cuts, the fleet is to be reduced to 230 combat ships, eliminating 57 vessels from a current force level of 287.

The Air Force must retire six fighter air wings equivalents, and at the same time build 301 fewer F-35 fighters. The nuclear bomber force will be completely eliminated in the name of unilateral disarmament—the B-1 and B-2 and B-52 and other bombers will still be able to drop bombs, but their nuclear weapon wiring and controls will simply be removed. Procurement of the new refueling tanker and the C-17 cargo aircraft will be cancelled. Directed energy beam research and other advanced missile and space warfare defense projects will also be eliminated or curtailed.

Active duty Army personnel will be slashed from 562,400 to 360,000. That includes elimination of about five active-component brigade combat teams (the report is not exactly). The Army will also suffer a myriad of other cuts, including closure of overseas bases.

The Marine Corps would be cut by 30%, from 202,000 to 145,000, and the other funding cuts planned for the Corps mean the United States will not be able to mount a major amphibious landing on any hostile shore. Marine Corps programs to be killed include the V-22 Osprey tilt rotor aircraft and the Expeditionary Fighting Vehicle.


Downsizing and effictively disarming our military only gets them so far, so they cut benefits for the folks that will be left standing.

The hot button item of reducing pay, pension, healthcare and other benefits for our soldiers, their wives, their families and their widows is stated as: “Resetting the calculation of military compensation and reforming the provision of military health care…” Whatever those mysterious words will ultimately come to mean, the task force report shows a planned reduction of pay and benefits for the troops and their families to the tune of $120 billion.


All this to save $1 trillion. I have a better idea, scrap Obamacare, not our military. That will save a projected $1.2 trillion. An extra $200 billion of savings should please that noted deficit hawk Frank and we will still be able to defend ourselves.