Economics & Taxes Archives

As noted in the introduction to this series, I’m blogging on two short works on Poverty, the first is Ched Myers The Biblical View of Sabbath Economics and the second is the 14th oration by St. Gregory of Nazianzus entitled “On Love for the Poor” (note I misquoted the title in the prior essay as well as Mr Myers first name). In this short essay, I’m going to attempt to precis the basic thrust of the two works. The current plan is follow this short summary with some critical assessments of the two works. The introduction was here, and the overview essay here.

Reading Mr Myers pamphlet is a little disconcerting. For that which he argues, that concern for the poor, charity, and turnings one heart and aspirations to God instead of the material transient world are all well known and established virtues in Christian living. This where he concludes, where he is driving and this conclusion is not wrong. But it must be admitted, that it is very rare to use the validity of a conclusion to justify an argument … and alas Mr Myers reasons and arguments are very very bad. Mr Myers, as noted in the introduction, follows a unusual hermeneutic for extracting meaning from Scripture. That is he views Scripture via a lens of economics … with a caveat on that description that one must note that his views of economics themselves are also somewhat unusual. Read the rest of this entry

Fred Thompson, on Economic Misdirection

We need a President who understands that you don’t make citizens prosperous by making Washington richer, and you don’t lift an economic downturn by imposing one of the largest tax increases in American history.  Now our opponents tell you not to worry about their tax increases.  They tell you they are not going to tax your family.  No, they’re just going to tax “businesses”! So unless you buy something from a “business”, like groceries or clothes or gasoline … or unless you get a paycheck from a big or a small “business”, don’t worry … it’s not going to affect you.  They say they are not going to take any water out of your side of the bucket, just the “other” side of the bucket! That’s their idea of tax reform.

Fred Thompson, Republican National Convention, September 2, 2008

Christianity and Poverty: Two Views (Introduction)

A frequent commenter and blogger (his blog is here) Dan Trabue graciously sent me a copy of a book (that arrived with me away on vacation) that he finds to be a significant work describing his view on how Poverty and the Christian relate. In a short series of essays I’m going to compare, review, and contrast this pamphlet The Biblical View of Sabbath Economics by Chad Myers with a somewhat older work on basically the same topic. The the latter part of the 4th century St. Gregory of Nazianzus gave a lengthy oration “On the Poor”. It is these two works I’m going to compare.

Chad Myers according to the frontispiece has “worked for three decades in the field of non-violent activism for social justice, church renewal and radical discipleship.” Mr Myers has degrees in philosophy from UC Berkeley and the Graduate Theological Union (also in Berkeley).”

St. Gregory of Nazianzus on the other hand was the most accomplished rhetorician of the 4th century Church. The piece “On the Poor” is the 14th oration that has been passed on from his era. His most famous orations, the so called 5 “theological orations” given in just a short interval from just outside of Constantinople was a major turning point forever cementing the Nicene tradition in the Church over the more popular (at the time) Arian heresy. If you today hew to the Nicean statement of faith … in part you owe it to the brilliant rhetoric of St. Gregory. It also should be noted that St. Gregory unlike his friend St. Basil (the Great) took a different approach to asceticism. He personally eschewed the monastic and extreme asceticism practiced by St. Basil and others around him. His asceticism was a more literary (and spiritual) asceticism of contemplation without embracing all or perhaps many of the rigors of the monastic life. It might be noted however, that he did take at an early age a vow of celibacy which he maintained throughout his life.

Both of these pieces have some similar conclusions. Both stress that charity is a primary virtue. However their methods, arguments and ultimately their conclusions are very disimilar.

I will also admit up front that I have a lot of difficulty giving Mr Myers work a fair reading. Stylistically he makes blanket assertions about, for example, the nature of the free market society which at best are a caricature of the market economy as told by a Marxist. In short, a lot of false statements are made about economic truths and conditions in markets and in pre-market, i.e., early Bibilical societies which need disentangling from his main argument. What is left after the dissection … is a question I can’t answer at this point of this study. It is indeed one of the questions that will need to be answered in this short series.

A Cure Worse Than the Disease

Poverty, as Glenn Beck notes, is an issue that unites us all, at least on the surface.  It’s not a political condition, he says; it’s a human condition. 

According to the U.S. Census Bureau, nearly a third of the residents in those cities [Detroit, Michigan and Buffalo, New York] are living beneath the poverty line, the highest rates among large cities in the entire country.

No matter what side of the political aisle you’re on, that is nothing short of appalling. Yet if you ask people what we should do about it, you’ll probably hear answers that inexplicably break down right along party lines.

Indeed.  Instead, we should see what works and do it.  Additionally, we should see what doesn’t work and stop doing it.  I mean, if providing the same solution for decades hasn’t helped, it’s time for a radically different answer. 

But as Glenn observes, there are some places that will stick with their solution through thick and thin (and failure).

Read the rest of this entry

Understand this general rule (economically derived): The higher the price of gasoline, the less driving an individual will do.

Now, understand that the Democratic Party’s platform states:

We will create a cleaner, greener and stronger America by reducing our dependence on foreign oil, eliminating billions in subsidies for oil and gas companies and use the savings to provide consumer relief and develop energy alternatives, and investing in energy independent technology.

So, wouldn’t it stand to reason that an economy with higher gasoline prices would be welcomed by Democrats? Wouldn’t such an economy yield, through the effect of less driving, a cleaner, greener and stronger America?

Yet, Nancy Pelosi recently stated,

The President knows, as his own Administration has stated, that the impact of any new drilling will be insignificant – promising savings of only pennies per gallon many years down the road. Americans know that thanks to the two oilmen in the White House, consumers are now paying $4 a gallon for gas. But what Americans should realize is that what the President is calling for is drilling as close as three miles off of America’s pristine beaches and in other protected areas.

Today, the New Direction Congress will vote on legislation to bring down gas prices by taking crucial steps to curb excessive speculation in the energy futures market. The President himself could lower prices by drawing down a small portion of our government oil stockpile, the Strategic Petroleum Reserve. The New Direction Congress will continue to bring forth responsible proposals to increase supply, reduce prices, protect consumers, and transition America to a clean, renewable energy independent future.

Does Pelosi really want to lower the price of gasoline or does she want to play politics under the guise of saving the environment? How high must the price of gasoline go before the Democrats relent, and actually do something?

$10 a gallon?

Lessons From a Trip Down Memory Lane

I’m currently on vacation in Ithaca, NY. My dad’s father, my dad, his 2 brothers, and a whole host of family in-laws and friends have purchases homes here and retired to the beautiful central New York region. Ithaca is home to Cornell University and Ithaca College, and over the years students from those schools essentially paid for the homes while they rented them during the school year. We would take our 3 weeks vacation here every year to mow the lawn (5 feet high by summer; students don’t typically mow lawns) and see our cousins. Because the brothers and their sister tried to coordinate vacations, we got to know our first cousins very well, as well as some second cousins and others of various once-removed or twice-removed situations.

Ithaca lives up to the stereotype of a very liberal college town, politically speaking. Obama will carry this town with greater than 95% of the vote. For a very long time, large, “big box” stores — Wal-Mart, Kohl’s, Home Depot, for examples — were kept out of town so as not to ruin the local town charm. The problem was, suburbs just outside the town were quite accepting of these stores, and they saw their tax revenues jump as the stores came in, while Ithaca found itself in a bit of a crisis. Money came in to the town, but it flowed out to the mall just on the other side of the town line or in burgs 20-30 minutes away. In the end, the “CAVE” people (liberal folks who were labeled “Citizens Against Virtually Everything”) had to relent to the fiscal realities. Ithaca now has a thriving shopping area for those that want the big stores, and after 5 or so years it still has The Commons where you can stroll around to find that corner bookstore.

What the CAVE people were worried about didn’t really happen, or at least not nearly to the extent that they predicted. The Meadow Court and the Grayhaven motels, longtime residents of Ithaca, have survived the introduction of the Hampton Inn chain. The Grayhaven caters to dog owners, one of the ways they stay competitive; defining their market. The local Wicks Lumber, which has a small hardware store attached, is still in business, even with Home Depot less than 2 miles away. The “mom & pop” establishments are essentially still here. The free market didn’t kill them off, and the CAVE people have grudgingly accepted it. (Well, some were simply out-voted. Acceptance isn’t always a given.)

In the end, capitalism worked. People got more choices, and the existing businesses survived, either by defining their markets, trading on their nostalgic or hometown quality, or enjoying customer loyalty going back decades. In Ithaca, both kinds of consumers — for the large and small businesses — exist, and businesses of both types can exist, side-by-side, in a capitalist society.

Read the rest of this entry

Dude, I Found Your Recession

If America falls into recession, Democrats will blame Bush, no doubt.  But does Dubya’s influence on the economy cover the entire continent of Europe?  Retroactively?

A mood of fear and pessimism is starting to descend on Europe. It now seems the region could head into recession even before the United States.

Many EU nations are in real trouble. In Spain, economy minister Pedro Solbes declared that the country was facing its "most complex crisis ever" following a collapse of the property market.

A leading Spanish property group, Martinsa-Fadesa, filed for bankruptcy earlier this week.

Like Spain, Ireland has suffered a housing market collapse and many people have run up huge personal debts. The Irish economy shrank earlier in the year and economists say that if it continues to contract, the nation will fall into recession by the end of 2008.

Despite this, the Irish Prime Minister or Taoiseach, Brian Cowen, has insisted his country is still doing remarkably well, despite the global economic downturn, and has rejected claims that he is personally responsible for the downturn.

Denmark is already in recession and shows no sign of emerging from it in the near future. The government there stepped in to rescue a failing bank, Roskilde, in early July.

Unlike the US economy, which still grew (albeit very weakly) in the first quarter, European countries are already in different degrees of economic retreat.  And the emphasis above (mine) notes that this is a global economic problem which we are weathering better than the countries Democrats keep holding up as examples we should follow.

Is Bush that all-powerful?  (Hint: No.)  But it’s just too good a glop of mud to sling at him for Democrats.  They just can’t pass up the chance, and they hope their followers aren’t paying attention. 

[tags]economics,recession,Spain,Ireland,Denmark[/tags]

Whining about waiting in line

So John McCain is left to address Phil Gramm’s remarks that we have become a nation of whiners who are merely in a mental recession?

What exactly is a mental recession? Well, let’s do a little comparison of a mental recession with an economic depression.

Below is a photo (courtesy Yahoo!News) in which we see people queued up… waiting.

Iphone_whiners

Now take a look at a photo (courtesy National Park Service) in which we see another group of people queued up… waiting.

Depression-Food-Line

The difference?

In the first photo, the people are waiting to buy the latest iPhone (circa 2008), while in the second photo, the people are waiting to be given something to eat (circa 1930s).

First photo = mental recession.
Second photo = economic depression.

First photo = nation of whiners.
Second photo = nation of those eager, but unable, to provide for their families.

[tag]phil gramm, nation of whiners, mental recession, obama, john mccain[/tag]

Health Care Follow-up: Who Do You Believe?

(Dan Trabue, in a comment here to my previous post on health care, referenced a think tank paper that predicts cost reductions without a loss of effectiveness with a single-payer system, and took issue with my terming this "socialized medicine".  I decided to put my response up as a post.)

From the Wikipedia entry on health care in Canada: "Health care in Canada is funded and delivered through a publicly funded health care system, with most services provided by private entities."  So in Canada, it’s not government-run hospitals but it is a government funded system.  While the writer of this Wikipedia entry insists it’s not truly socialized medicine, the article at the link to the words "socialized medicine" does concede, "The term can refer to any system of medical care that is publicly financed, government administered, or both", I suppose depending on who you ask.

But who’s in charge of the hospitals or what you want to call it is immaterial, as the outcome is the same.  Britain has government-owned hospitals and Canada doesn’t, but the result is still that bureaucracies make medical decisions instead of doctors and patients.  HMOs were the Left’s bogeyman for years, but their solution is to institute the nation’s, perhaps the world’s, largest HMO/insurance company to make our individual health care decisions.  This makes no sense at all.

From the think tank paper cited:

[The Lewin Group, "a nationally respected nonpartisan
consulting firm"] estimates the proposal would cover 99.6 percent of all Americans without raising total national health spending. It would also save hundreds of billions over time – more than $1 trillion over the next 10 years – in national health spending, according to Lewin.

The Lewin Group is inexplicably closing its eyes to the Canadian system, blue-skying his prediction.  The Canadian system uses both government- and employer-based payment system, utilizing private insurance/doctors/hospitals, and they are in crisis.  They are not saving money (Claude Castonguay, quoted in the original post, notes that rationing and "injecting massive amounts of new money" has not helped).  They most certainly do not serve effectively (Wikipedia cites a study showing 57% of Canadians wait 4 or more week to see a specialist).  And it unfortunately affects everyone (read the Wikipedia article sections titled "Government Involvement" and "Private Sector").

Are you really going to believe predictions on the efficiency and cost effectiveness of a massive government program.  No government program of such a size ever comes in under budget; not Medicare, not Social Security, not the Iraq War, nothing

The Lewin Group says that the government could bargain for lower costs, and yet Canada’s are skyrocketing.  They may have gone down at the beginning, but as The Acton Institute’s Dr. Donald Condit notes:

Resource consumption increases when people think someone else is shouldering the cost. Nobel Laureate Milton Friedman observed, “Nobody spends somebody else’s money as carefully as he spends his own.” More than 60 years of “someone else” paying for health care has led to medical expense inflation. Our predominately third-party reimbursement “system,” beginning after World War II for employees and after Medicare in 1965 for the retired, has resulted in out-of-control spending. Increasing the role of government will spur unbridled medical services consumption and further harm the underserved. Medical resources are limited. An expanded government role in health care will necessarily lead to rationing, shortages of health-care providers, delay in treatment, and deterioration in quality of care.

Medicaid is a socialized medicine microcosm. In that system, price controls and bureaucracy result in rationing by deterring provider participation and delaying treatment, with subsequent deterioration in quality of care. Affluent individuals are able to access better health care outside of any government system.

And this "Medicare model" is what the EPI plan wants to take the "best elements" of, which they only enumerate later on as the federal government administering it.  How can the Left possibly say they care more for the less-fortunate in one breath, and in the other hold up health care rationing as "caring"?  This makes no sense at all.

Canada’s system currently compares favorably to the US in terms of a couple of cherry-picked statistics, but that’s like judging a pyramid scheme based on the first few generations.  They are losing on other fronts, like a drain of doctors.  And they are now at the tipping point of that pyramid scheme, where the choice is either returning a bigger role to the private sector (what Castonguay called "radical" and what conservatives call "sensible") or sliding further down the slope to socialism.  The Left, not wishing to have their utopian vision challenged, will no doubt push for the latter.

Read the rest of this entry

"Change" That Has Already Failed

As the promise of Universal Healthcare continues to be sold to the American public by Democrats, the anecdotes fly. Look here; a case failure of our healthcare system! Look there; another person falls through the cracks!

The problem is, it’s the big picture that continues to put the lie to the selling of socialized medicine. As I’ve noted before, the system in Oregon will deny cancer patients life-saving or -extending medicine, but will gladly pay for life-ending “treatment”. You can decry all you want the profit motive of the private enterprise system, but with socialized medicine the profit motive is just as motivating, with a bigger bureaucracy larger than any insurance company you can name calling the shots.

And as Christians, is this the kind of system that we want to be encouraging? We’d have rationed healthcare (all socialized systems wind up here, sooner or later), equally poor quality, and a respect for life on par with Oregon’s.

But hey, it would be “equal”. Wonderful.

This bit of “hope” and “change”, however, has already been done on this scale. And how has it worked? Let’s talk to one of the founding fathers.

Back in the 1960s, [Claude] Castonguay chaired a Canadian government committee studying health reform and recommended that his home province of Quebec — then the largest and most affluent in the country — adopt government-administered health care, covering all citizens through tax levies.

The government followed his advice, leading to his modern-day moniker: “the father of Quebec medicare.” Even this title seems modest; Castonguay’s work triggered a domino effect across the country, until eventually his ideas were implemented from coast to coast.

Four decades later, as the chairman of a government committee reviewing Quebec health care this year, Castonguay concluded that the system is in “crisis.”

“We thought we could resolve the system’s problems by rationing services or injecting massive amounts of new money into it,” says Castonguay. But now he prescribes a radical overhaul: “We are proposing to give a greater role to the private sector so that people can exercise freedom of choice.”

Read the rest of this entry

Lessons in "The Market"

Learned by Josh Marshall, lefty blogger at Talking Points Memo. First, he starts out the post being inspired.

I happened yesterday on this article in The Atlantic by Jonathan Rauch about the Chevy Volt. GM is throwing tons of resources into a breakneck schedule to produce an electric powered car that is dramatically more advanced than the hybrids currently on the market. The question is whether they can have the technology developed in time for release date.

It’s sort of inspiring to see an American company try something so ambitious.

American companies try ambitious things all the time. Energy companies might try this more often, if there wasn’t the ever-present concern that their return-on-investment might get sucked away by the government as “windfall profit”. The freedom to innovate while keeping the fruits of your labor, and responding to needs by the consumer, is a feature of what we call “the market”. Familiarizing oneself with the concept would be very helpful in the current economic climate.

Josh then finds in himself a newfound concern about alternative energy sources. Despite his upbringing, he says, he was never really focused on it much.

But that’s changed over the last several months: most of the key issues that face us today, from environmental issues proper, to our geostrategic position vs. other great powers and the future of our economy, all turn on our reliance on fossil fuels. Not just ‘foreign’ ones, all of them.

And what has likely contributed heavily to this rediscovered concern? How about the gas prices that have been rising quickly over “the last several month”? But that’s nothing to be ashamed of. The price of an item is an amazing bit of information that gives suppliers knowledge of short-term future demand, gives consumers an incentive to buy more or less of a product, and, depending on the price itself, gives innovators an incentive to come up with new and better way to supply the need. This is a feature of what we call “the market”. (Detect a pattern here?)

This is instead of nationalizing the particular industry or forcing the price to an artificially lower value which could easily bring about shortages (just ask Venezuelans) and stifle innovation. I mean, a new source of a product just may cost a bit more as it’s getting ramped up, and forcing existing prices lower make consumers less likely to make the transition, unless you force them to do so. The keyword here, which must be used over and over again, is “force”. And when your government is forcing all of your economic decisions on you, this is a feature of what we call “socialism”.

Would Marshall know the free market it if jumped out and bit him? I think it just did, but according to the title of his post, he’s “shocked, shocked”. Likely that’s an intentional pun on the Chevy Volt subject, but his surprise at seeing American innovation, and his lack of understanding of his changing attitudes tells me that he apparently doesn’t recognize the source of those teeth marks.

[tags]Josh Marshall,free market,economics,supply and demand,oil industry,socialism,communism[/tags]

Cruel to be Kind

No, not the 80’s song by Nick Lowe. The “kindness” brought to you by a government that just doesn’t seem to understand basic economics. Employment of minimum wage earners keeps going down (the cruel part) because of the hikes in the minimum wage the government keeps mandating (the “kind” part).

The percentage of teens classified as “unemployed” — those who are actively seeking a job but can’t get one — is more than three times higher than the national unemployment rate, according to the most recent Department of Labor statistics.

One of the prime reasons for this drastic employment drought is the mandated wage hikes that policymakers have forced down the throats of local businesses. Economic research has shown time and again that increasing the minimum wage destroys jobs for low-skilled workers while doing little to address poverty.

According to economist David Neumark of the University of California at Irvine, for every 10 percent increase in the minimum wage, employment for high school dropouts and young black adults and teenagers falls by 8.5 percent. In the past 11 months alone, the United States’ minimum wage has increased by more than twice that amount.

So it should be no surprise to see teen jobs disappearing or to hear bleak testimony from employers across the country that make these hiring decisions.

And it’s not just teens looking for a summer job that this hurts.

There’s no end to the economic data that confirm these common-sense observations. Research from the University of Georgia, the University of Connecticut and Cornell University indicates that increasing the minimum wage causes four times more job loss for employees without a high school diploma than it does for the general population.

Furthermore, minimum wage hikes don’t effectively target the people who are typically portrayed as the key beneficiaries — low-income adults raising kids. According to U.S. Census Bureau data, just 14 percent of those who benefited from the most recent federal minimum wage hike are sole earners in families with children.

The whole “living wage” canard used to buttress the case for increased minimum wage, then, is an incredibly small amount of those who benefit, and arguable more folks are hurt because of it. The question always asked is, “Is it better to have a lower-paying job, or no job at all?” Democrats will consistently ignore or hand-wave away this question, in the interest of “caring”.

Well ask those unemployed folks how much that “caring” helped them.

[tags]minimum wage,economy[/tags]

Who’s More Honest?

I looked at the “charitability” of conservatives and liberals when Arthur Brooks came out with his study in 2006. He noted that conservatives were more charitable with their time and money than liberals.

Today we have a piece about multiple polling groups finding a correlation between the political spectrum and the honesty spectrum. But before I get to the data, I want to address the issue I have when I say “I hate polls”, which I’ve said quite a lot.

I’ve covered this a bit before, but it bears repeating. When we poll people on topics that they have little to no experience in, the poll is meaningless; no more than, as SCO contributor Mark Olson calls them, a cricket race. “Consumer confidence” numbers are as much (or more) a measure of economic news reporting as they are about how a person feels (itself, an ephemeral measurement). “Who would you vote for”, on the other hand, is certainly something each person can know about themselves for sure. Now, that may change over time, but no one else knows you better than you at this moment. It’s not a good measure of who you’ll vote for 6 months from now, but it’s accurate enough for the here and now, much more so than deciding how the economy is going based on feelings.

With that out of the way, on to the results.

Is it OK to cheat on your taxes? A total of 57 percent of those who described themselves as “very liberal” said yes in response to the World Values Survey, compared with only 20 percent of those who are “very conservative.” When Pew Research asked whether it was “morally wrong” to cheat Uncle Sam, 86 percent of conservatives agreed, compared with only 68 percent of liberals.

(Maybe that’s why liberals are all for tax increases. They figure the conservatives will do most of the paying.)

Ponder this scenario, offered by the National Cultural Values Survey: “You lose your job. Your friend’s company is looking for someone to do temporary work. They are willing to pay the person in cash to avoid taxes and allow the person to still collect unemployment. What would you do?”

Almost half, or 49 percent, of self-described progressives would go along with the scheme, but only 21 percent of conservatives said they would.

When the World Values Survey asked a similar question, the results were largely the same: Those who were very liberal were much more likely to say it was all right to get welfare benefits you didn’t deserve.

The World Values Survey found that those on the left were also much more likely to say it is OK to buy goods that you know are stolen. Studies have also found that those on the left were more likely to say it was OK to drink a can of soda in a store without paying for it and to avoid the truth while negotiating the price of a car.

And on the article goes, with more and more examples in the same vein. Buy why is this? Well, this is an opinion piece (because the MSM would never touch this with a 10-kilometer pole), so the writer, Peter Schweizer, a Hoover Institution fellow and author of a new book on this subject, actually does some analysis and gives us his take, but based on data, not just out of thin air.

Now, I’m not suggesting that all conservatives are honest and all liberals are untrustworthy. But clearly a gap exists in the data. Why? The quick answer might be that liberals are simply being more honest about their dishonesty.

However attractive this explanation might be for some, there is simply no basis for accepting this explanation. Validation studies, which attempt to figure out who misreports on academic surveys and why, has found no evidence that conservatives are less honest. Indeed, validation research indicates that Democrats tend to be less forthcoming than other groups.

The honesty gap is also not a result of “bad people” becoming liberals and “good people” becoming conservatives. In my mind, a more likely explanation is bad ideas. Modern liberalism is infused with idea that truth is relative. Surveys consistently show this. And if truth is relative, it also must follow that honesty is subjective.

Ideas, indeed. Post-modern deconstruction of traditional values did not originate from conservatives. And this is even more important, considering what year it is.

Sixties organizer Saul Alinsky, who both Barack Obama and Hillary Clinton say inspired and influenced them, once said the effective political advocate “doesn’t have a fixed truth; truth to him is relative and changing, everything to him is relative and changing. He is a political relativist.”

[tags]honest,conservatives,liberals,polls[/tags]

The Carbon Credit Scam

Jim Lindgren at The Volokh Conspiracy notes a few studies showing that the carbon offset program set up by the United Nations is what amounts to a scam.

Leading academics and watchdog groups allege that the UN’s main offset fund is being routinely abused by chemical, wind, gas and hydro companies who are claiming emission reduction credits for projects that should not qualify. The result is that no genuine pollution cuts are being made, undermining assurances by the UK government and others that carbon markets are dramatically reducing greenhouse gases, the researchers say.

[…]

A working paper from two senior Stanford University academics examined more than 3,000 projects applying for or already granted up to $10bn of credits from the UN’s CDM[clean development mechanism] funds over the next four years, and concluded that the majority should not be considered for assistance. "They would be built anyway," says David Victor, law professor at the Californian university. "It looks like between one and two thirds of all the total CDM offsets do not represent actual emission cuts." . . .

Should we really be shocked that a left-wing scheme to "do something" turns into a Make Money Fa$t scam?  (Hint: No.)  It’s just become another tax, which, one wonders, if that wasn’t the plan all along.

[tags]environment,United Nations,global warming,climate change,carbon offsets,Stanford University,David Victor,clean development mechanism[/tags]

A Stinging Rebuke

Senator Tom Coburn (R-OK) slaps his party on the back of the head and tells them to wake up.

As congressional Republicans contemplate the prospect of an electoral disaster this November, much is being written about the supposed soul-searching in the Republican Party. A more accurate description of our state is paralysis and denial.

Many Republicans are waiting for a consultant or party elder to come down from the mountain and, in Moses-like fashion, deliver an agenda and talking points on stone tablets. But the burning bush, so to speak, is delivering a blindingly simple message: Behave like Republicans.

Unfortunately, too many in our party are not yet ready to return to the path of limited government. Instead, we are being told our message must be deficient because, after all, we should be winning in certain areas just by being Republicans. Yet being a Republican isn’t good enough anymore. Voters are tired of buying a GOP package and finding a big-government liberal agenda inside. What we need is not new advertising, but truth in advertising.

Becoming Republicans again will require us to come to grips with what has ailed our party – namely, the triumph of big-government Republicanism and failed experiments like the K Street Project and "compassionate conservatism." If the goal of the K Street Project was to earmark and fund raise our way to a filibuster-proof "governing" majority, the goal of "compassionate conservatism" was to spend our way to a governing majority.

Indeed, Republicans, with control of the purse strings to incredible riches that is the constant lure in a centralized government as huge as ours, turned into the very things they criticized; spendthrifts.  In doing so, they further exemplified one of the major problems with government trying to "do something".  Each party essentially winds up promising money for votes.  A smaller central government, not nearly as flush with cash, would be required to stick more closely to its constitutional boundaries.  Instead, regardless of the party, government has, in recent administrations, decided that it knows better how to be "compassionate".

But, as Senator Coburn notes, it’s not "compassion".

Compassionate conservatism’s starting point had merit. The essential argument that Republicans should orient policy around how our ideas will affect the poor, the widow, the orphan, the forgotten and the "other" is indisputable – particularly for those who claim, as I do, to submit to an authority higher than government. Yet conservatives are conservatives because our policies promote deliverance from poverty rather than dependence on government.

Compassionate conservatism’s next step – its implicit claim that charity or compassion translates into a particular style of activist government involving massive spending increases and entitlement expansion – was its undoing. Common sense and the Scriptures show that true giving and compassion require sacrifice by the giver. This is why Jesus told the rich young ruler to sell his possessions, not his neighbor’s possessions. Spending other people’s money is not compassionate.

Precisely.  Read the whole thing, especially if you’re a Republican.

[tags]Senator Tom Coburn,Republicans,compassionate conservatism,K Street Project,small government[/tags]

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