Archives: May, 2009

No Balanced Budget, No Raise

Ben Goddard writes in The Hill about the new taxpayer revolt in California this week. The political establishment put together a package of initiatives that it thought would fix the budget process there – but the people weren’t buying it. The only thing they passed was the measure to ban salary increases for legislators if they didn’t balance the budget.

There are similar proposals floating around Capitol Hill. If bills were subject to a popular vote, it seems like such a thing would be likely to pass.

Declining Support for More Spending

The Pew Research Center has come out with the report of its latest survey on trends in political values.  There is much interesting stuff here. For example:

The public continues to broadly support stricter environmental laws and regulation, but its willingness to pay higher prices, and suffer slower economic growth for the sake of environmental protection has declined substantially from two years ago. In the new poll, 51% agree that protecting the environment should be given priority even if it causes slower economic growth and some job losses, down from 66% in 2007. At the same time, the share saying that people should be willing to pay higher prices in order to protect the environment has dropped from 60% in 2007 to 49% currently. This represents a 17-year low point on this measure. Surprisingly, declines since 2007 in support for economic sacrifices to protect the environment have been particularly large among young people and political independents.

These results suggest one reason cap-and-trade is having trouble in Congress. Imagine what might happen if the public actually had to pay more for Obama’s green agenda.

The results are also consistent with the hypothesis that support for government spending should begin to decline almost immediately after Obama took office.

Why We Shouldn’t Bomb Iran—From an Unlikely Source

Many of the same people who were telling us what a cakewalk invading Iraq would be are now lobbying to bomb Iran.  They assure us it would be another cakewalk which would restore American prestige around the world.  Indeed, North Korea and other rogue states would come groveling.

Right.

But an unusual opponent of launching another war has emerged.  Reports the Jerusalem Post:

There is no viable military option for dealing the Iranian nuclear threat, and efforts by the Israeli government and its supporters to link that threat to progress in peace with the Palestinians and Syria are “nonsense” and an obstacle to the Arab-Israeli and international cooperation essential to changing Iranian behavior.

That’s the conclusion of Keith Weissman, the Iran expert formerly at the American Israel Public Affairs Committee (AIPAC), speaking publicly for the first time since the government dropped espionage charges against him and his colleague, Steve Rosen, earlier this month.

There’s no assurance an attack on Iran’s nuclear facilities - even if all of them could be located - would be anything more than a temporary setback, Weissman told me. Instead, a military strike would unify Iranians behind an unpopular regime, ignite a wave of retaliation that would leave thousands dead from Teheran to Tel Aviv, block oil exports from the Persian Gulf and probably necessitate a ground war, he said.

“The only viable solution is dialogue. You don’t deal with Iran with threats or preaching regime change,” said Weissman, who has lived in Iran, knows Farsi (as well as Arabic, Turkish and French) and wrote his doctoral dissertation at the University of Chicago on Iranian history. That’s where the Bush administration went wrong, in his view.

“President Bush’s demand that Iran halt all nuclear enrichment before we would talk with the regime was an excuse not to talk at all,” Weissman said. “And the administration’s preaching of regime change only made the Iranians more paranoid and told them there was no real desire to engage them, only demonize them. The thing they fear most is American meddling in their internal politics.”

His arguments would have had no effect on the previous administration.  But his judgment offers powerful and welcome backing for President Barack Obama, who seems determined to pursue diplomacy.

Labor’s Waxing Political Influence

It has long been recognized that many capitalists are the greatest enemies of capitalism.  They want free enterprise for others, not themselves.

Unfortunately, organized labor tends to be even more statist in orientation.  Unions now routinely lobby for government to give them what they cannot get in the marketplace.

Labor influence is greatest in the public sector.  And as government’s power has expanded during the current economic crisis, so has the influence of unions.  Observes Steve Malanga in the Wall Street Journal:

Across the private sector, workers are swallowing hard as their employers freeze salaries, cancel bonuses, and institute longer work days. America’s employees can see for themselves how steeply business has fallen off, which is why many are accepting cost-saving measures with equanimity – especially compared to workers in France, where riots and plant takeovers have become regular news.

But then there is the U.S. public sector, where the mood seems very European these days. In New Jersey, which faces a $3.3 billion budget deficit, angry state workers have demonstrated in Trenton and taken Gov. Jon Corzine to court over his plan to require unpaid furloughs for public employees. In New York, public-sector unions have hit the airwaves with caustic ads denouncing Gov. David Paterson’s promise to lay off state workers if they continue refusing to forgo wage hikes as part of an effort to close a $17.7 billion deficit. In Los Angeles County, where the schools face a budget deficit of nearly $600 million, school employees have balked at a salary freeze and vowed to oppose any layoffs that the board of education says it will have to pursue if workers don’t agree to concessions.

Call it a tale of two economies. Private-sector workers – unionized and nonunion alike – can largely see that without compromises they may be forced to join unemployment lines. Not so in the public sector.

Government unions used their influence this winter in Washington to ensure that a healthy chunk of the federal stimulus package was sent to states and cities to preserve public jobs. Now they are fighting tenacious and largely successful local battles to safeguard salaries and benefits. Their gains, of course, can only come at the expense of taxpayers, which is one reason why states and cities are approving tens of billions of dollars in tax increases.

The government’s increased power over the economy also gives organized labor a new hook to lobby for more special interest privileges.  For instance, the AFL-CIO is arguing that the federal bailout of the auto industry should bar the companies from moving factories overseas.

Explains the union federation:

The pundits and politicians inside the Washington Beltway don’t get: If the United States continues to send its manufacturing jobs [1] overseas—as [2] General Motors and Chrysler are now proposing—the result will be more low-income U.S. families.

So today, workers, economists, academics and business and union leaders, fresh from the “[3] Keep It Made in America” bus tour through the nation’s heartland, brought that message to the policymakers’ doorstep as part of a teach-in on Capitol Hill.

The 11-day, 34-city bus tour showcased the ripple effect on communities of the lost jobs in manufacturing. ([4] See video.) Today, during the teach-in, those who took part brought the stories they heard along the tour and presented principles for revitalizing the auto industry to members of Congress and the press. 

Labor officials have been making similar arguments about bank lending.  If you got bailed out by Washington, then you have an obligation to keep funding bankrupt concerns.  Never mind getting paid back, and paying back the taxpayers.

Markets are resilient, but can survive only so much political interference.  If the American people aren’t careful, they might eventually find themselves living in an economy more appropriate for Latin America than North America.

… But Obama Generally Comprehends Terrorism

My difference with the President on releasing photos of Abu Ghraib notwithstanding, he exhibits an understanding of terrorism and how to counter it – an understanding that was not on display at the other end of Pennsylvania Avenue this week or at the American Enterprise Institute today.

Here’s a portion of President Obama’s speech today showing that he knows how overreaction to terrorism (such as resorting to torture) plays into the terrorism strategy:

As commander-in-chief, I see the intelligence, I bear responsibility for keeping this country safe, and I reject the assertion that these are the most effective means of interrogation. What’s more, they undermine the rule of law. They alienate us in the world. They serve as a recruitment tool for terrorists, and increase the will of our enemies to fight us, while decreasing the will of others to work with America. They risk the lives of our troops by making it less likely that others will surrender to them in battle, and more likely that Americans will be mistreated if they are captured. In short, they did not advance our war and counter-terrorism efforts – they undermined them, and that is why I ended them once and for all.

Tom Tancredo Says: Legalize Drugs!

Former Rep. Tom Tancredo is no libertarian.  After all, he made his name attacking immigration.  But the former member is now speaking politically painful truths.

Yesterday he spoke to a local Republican group in Denver:

Admitting that it may be “political suicide” former Colorado Congressman Tom Tancredo said its time to consider legalizing drugs.

He spoke Wednesday to the Lincoln Club of Colorado, a Republican group that’s been active in the state for 90 years. It’s the first time Tancredo has spoken on the drug issue. He ran for president in 2008 on an anti-illegal immigration platform that has brought him passionate support and criticism.

Tancredo noted that he has never used drugs, but said the war has failed.

“I am convinced that what we are doing is not working,” he said.

Tancredo told the group that the country has spent billions of dollars capturing, prosecuting and jailing drug dealers and users, but has little to show for it.

“It is now easier for a kid to get drugs at most schools in America that it is booze,” he said.

He said the violent drug battles in Mexico are moving north. A recent ABC News report profiled how easy it has become for violent drug cartels to smuggle cocaine into the United States. Drug enforcement officials told ABC that Denver is a hub city for distribution.

It’s time for politicians like Tancredo to start telling the truth while they are still in office.

Transparency and National Security Are Not in Tension

Penny-wise and pound-foolish. That is my take on the “balance between transparency and national security” President Obama claims to have struck with regard to photographs of wrongdoing at Abu Ghraib.

Taking it as a given that release of the photos would inflame enemies in Iraq and threaten our troops there, failing to release the photos will warm anti-American sentiment the world over for far longer as people assume that the U.S. is concealing far worse than what is already known.

Not lancing a boil is a way to avoid pain, but failing to lance that boil is potentially much more painful over the long haul. By not releasing the photos, President Obama protects troops today at a cost to more troops in the future.

The damage was done at Abu Ghraib. All that remains is to let sunlight heal the wounds or to let the infection continue to fester.