Tag: stimulus

No Wonder the GOP Has No Credibility on Spending

You would think Barack Obama’s tsunami of federal spending would provide an easy target for Republicans.  But they apparently haven’t learned the right lessons after two successive electoral debacles.

Earmarks don’t account for a lot of money in Washington terms.  You know, just a few billion dollars out of trillions or quadrillions or whatever we are now up to – it’s so easy to lose track!

Nevertheless, earmarks are a powerful symbol.  So trust the “stupid party” to muff its chance.  Reports Politico:

Bashing Democrats on the day President Obama signed the $410 billion omnibus spending bill was the easy part for Republican leaders Wednesday.

But getting Rep. John Boehner and Sen. Mitch McConnell on the same page on earmarks will be a lot tougher.

At a joint press conference designed to present a united Republican front against Democratic spending habits, McConnell (R-Ky.) and Boehner (R-Ohio) appeared to diverge on earmark reform.

“I think the president missed a golden opportunity to really fulfill his campaign commitment to not sign bills that have a lot of wasteful spending and are overburdened with earmarks,” Boehner said. “If you look at the earmark reforms that he proposed, the question I have is, ‘Where’s the beef?”

McConnell declined to answer the question about earmarks, and instead criticized the president’s contention that the omnibus bill was simply last year’s unfinished business.

“Let me tell what was not last year’s business was plussing the bill up 8 percent, which is twice the rate of inflation,” McConnell said. “This bill is not last year’s business. … It further illustrates my point that when you add up the stimulus and the omnibus, the spending in the first 50 days of the administration [comes] at a rate of $1 billion an hour.”

Republicans have tried to come up with a unified earmark reform plan, but have struggled as GOP appropriators are reluctant to sign on. McConnell is on the Senate Appropriations Committee and has called for earmark reforms, but he and many lawmakers defend Congress’ constitutional right to direct spending.

In the omnibus bill, McConnell secured some $75 million worth of earmarks, while Boehner, a long-time critic of earmarks, did not. Boehner says Congress should freeze earmarks for the rest of the year, saying it leads to wasteful and potentially corrupting Washington spending.

Of course, Democrats have taken not.  In signing the latest spending bill President Barack Obama landed a nice blow against GOP hypocrisy:

And I also find it ironic that some of those who rail most loudly against this bill because of earmarks actually inserted earmarks of their own and will tout them in their own states and their own districts.

If Congress can’t take a vow of poverty on distributing pork when the nation faces a $1.3 trillion budget deficit and trillions more in deficits over the coming years, then it isn’t likely ever to be more responsible with the public’s money.

Hillary’s Shock Doctrine

Hillary Rodham Clinton, the secretary of state who no doubt thinks of herself as “fourth in the line of succession,” tells a European audience how the Obama administration will pass an agenda that Americans have previously rejected: “Never waste a good crisis … Don’t waste it when it can have a very positive impact on climate change and energy security.”

As I’ve written several times, governments throughout the decades have taken advantage of wars and economic crises to expand their size, scope, and power. Bob Higgs wrote about “Crisis and Leviathan” long before Naomi Klein called it “The Shock Doctrine.”

But the striking thing about the Obama administration is that they openly acknowledge that’s what they’re doing – using a crisis to ram through their entire policy agenda while people are in a state of panic. Projects like national health insurance, raising the price of energy, and subsidizing more schooling – the three prongs of President Obama’s speech to Congress – have nothing to do with solving the current economic crisis. But the administration is trying to push them all through as “stimulus” measures. And they keep proclaiming their strategy.

First it was Rahm Emanuel: “You never want a serious crisis to go to waste. And this crisis provides the opportunity for us to do things that you could not do before.” Then Joe Biden: “Opportunity presents itself in the middle of a crisis.”  Not to mention Paul Krugman and Arianna Huffington. And now Hillary.

Not since George Bush the elder told the media that his campaign theme was “Message: I care” has a president been so open about his political strategy. But these people are displaying a contempt for the voters. They’re telling us that we’re so dumb, we’ll go along with a sweeping agenda of economic and social change because we’re in a state of shock. They may be right.

But voters and members of Congress should remember Bill Niskanen’s sobering analysis of previous laws passed in a panic.

Cato Scholars Address Obama’s First Speech to Congress

President Barack Obama’s first address to Congress laid out a laundry list of new spending contained within the stimulus legislation and provided hints as to what will be contained in the budget - a so-called “blueprint for America’s future” - he’ll submit to the legislature. Cato Institute scholars Chris Edwards, Jim Harper, Gene Healy, Neal McCluskey, David Rittgers, John Samples and Michael D. Tanner offer their analyses of the President’s non-State-of-the-Union Address.

Subscribe to Cato’s video podcast here and Cato’s YouTube channel here.

New Podcast: “Stimulus: The Welfare Un-Reform”

When President Obama signed his massive spending bill into law yesterday, many of the provisions of the 1990s welfare reform were chipped away, says Cato Senior Fellow Michael D. Tanner in today’s Cato Daily Podcast. Parts of the new law actually offer states incentives to add people to their welfare rolls, Tanner says.

They didn’t repealed the ’96 act, but what they have done is chip away at the foundations and the very idea that you’re supposed to hold down your rolls rather than increase them, particularly when you take this into the context of all the other welfare spending….There really is a surprising increase in the welfare state in this bill.

In a New York Post op-ed, Tanner expands on the welfare-friendly provisions of the stimulus plan:

This is radical change. States that succeed in getting people off welfare would lose the opportunity for increased federal funding. And states that make it easier to stay on welfare (by, say, raising the time limit from two years to five) would get rewarded with more taxpayer cash. The bill would even let states with rising welfare rolls still collect their “case-load reduction” bonuses.

In short, the measure will erode all the barriers to long-term welfare dependency that were at the heart of the 1996 reform.

Stimulus Lobbying Watch

Tim Carney has more details on some companies that hired lobbyists specifically to get a piece of the kitchen-sink spending bill:

For example, the National Association of Home Builders hired Baker & Hostetler a week after Barack Obama’s inauguration to lobby explicitly on the stimulus bill, which, in the end, included an $8,000 credit for home purchases.

Better Place Inc. is an electric car company that hired its first lobbyist — Steve McBee, a former staffer for House appropriator Norm Dicks, D-Wash. — to push for electric car incentives in the stimulus. The resulting cornucopia included an expanded tax credit for plug-in cars, $2 billion in funding for electric car batteries and $400 million to build an electric car infrastructure, complete with recharging stations.

Media giant Time Warner added to its lobbying army, hiring the firm Parven Pomper Strategies to lobby for broadband subsidies in the bill. These subsidies included $2.5 billion to underwrite loans to get broadband out to rural areas and an additional $4.7 billion in spending on other broadband projects. Similarly, network giant Cisco Systems lobbied for the broadband subsidies in H.R. 1.

Carney calls it “The Lobbyist Enrichment Act.” I wrote about “Obama’s K Street Recovery Plan” a couple of days ago.

New Podcast: Obama’s Shock Doctrine

Naomi Klein, author of The Shock Doctrine: The Rise of Disaster Capitalism, says free-market advocates spend their careers stockpiling free-market ideas waiting for a crisis that could be used as a springboard for implementing those ideas. But, as David Boaz asks, what about Obama’s policy proposals amid recession and financial crisis?

In today’s Cato Daily Podcast, Boaz exposes Obama’s Shock Doctrine:

We know from history that, while there are a few examples of free-market or somehow right-wing programs coming about after a crisis, usually what happens in a crisis is government seizes more money and power. And you can see that in the New Deal; the Great Depression led to the New Deal. You can see it after Kennedy’s assassination led to Lyndon Johnson and his 100 days of legislation. You can see it in practically every communist government that ever came to power, was in the devastation of war….

We had a financial crisis and what happened? Did the incumbent Republican administration say, now’s our chance to implement Milton Friedman’s program and privatize and deregulate? No, they did what governments always do: they expanded their own powers at the expense of civil society, and so in that sense, Obama’s just doing the same thing that Bush did. We could call this the Bush-Obama era.

It was, after all, Rahm Emmanuel who said, “You never want a serious crisis to go to waste. This crisis provides the opportunity for us to do things that you could not do before.”

Topics:

The Biggest Check Ever Signed

The Obama Administration has banked a lot of political capital on the economic “stimulus” package signed into law today, and is hailing the measure as a sound-minded reaction to a dreary economic climate.  In truth, many of the programs in the bill are not only wasteful and inefficient, but have the potential to do some real long-term harm to U.S. policy.

Among them:

The economic stimulus bill is merely a nearsighted return to government spending policies which have been discredited over and over again [PDF].

For more on the package, check out Cato’s Fiscal Reality page.