Topic: Government and Politics

Dick Cheney: Obama’s Enabler

That’s the theme of my Washington Examiner column this week:

Dick Cheney’s “Shut Up and Listen” tour continued last week on CBS’s “Face the Nation.” There, the former veep reiterated his favorite theme: Obama is putting America at risk by “taking down a lot of those policies we put in place that kept the nation safe.”
 
What in the world is Cheney talking about? Granted, Obama’s anti-terror policies are clouded by rhetorical “Hope” and euphemism, and the new administration is less given to chest-thumping than its predecessor. Otherwise, Obama’s approach to terrorism is virtually identical to Bush/Cheney’s.

 Harvard Law prof and former Bush OLC head Jack Goldsmith makes a similar point in a New Republic piece out today, though Professor Goldsmith is happier about the continuity than I am.   For more, see Glenn Greenwald.

Congress “Helps” Credit Card Customers

One of the best laugh lines always has been “I’m from the government and I’m here to help you.”  Certainly that’s true when it comes to consumer protection.

In the name of saving customers from the evil, rapacious credit card companies Congress plans on limiting access to credit.  It also is working to hike costs for people with good credit.

Reports the New York Times:

Now Congress is moving to limit the penalties on riskier borrowers, who have become a prime source of billions of dollars in fee revenue for the industry. And to make up for lost income, the card companies are going after those people with sterling credit.

Banks are expected to look at reviving annual fees, curtailing cash-back and other rewards programs and charging interest immediately on a purchase instead of allowing a grace period of weeks, according to bank officials and trade groups.

“It will be a different business,” said Edward L. Yingling, the chief executive of the American Bankers Association, which has been lobbying Congress for more lenient legislation on behalf of the nation’s biggest banks. “Those that manage their credit well will in some degree subsidize those that have credit problems.”

This makes a lot of sense.  We’re worried about bad debt, bad mortgages, and bad loans.  So Congress is going to penalize people with good credit who carefully manage their financial affairs.  Of course!

It has long been evident that Congress has the reverse Midas touch.  Everything congressmen touch turns to, well, this is a family-oriented blog.  You can fill in the blank.

If Congress wants to help consumers, the best thing it could do is take an extended recess.

Irony! Get Your Red-Hot Health-Care Irony!

Someone forwarded me an email update from our friends at the Center for American Progress Action Fund (motto: “Disagree with us? Then you hate progress.”).

In one blurb, CAPAF’s crack team of spin-disclosers chides Republicans for discussing health care reform using the language recommended by pollster Frank Luntz, who “advised Republicans to fearmonger” Obama’s proposals to death!  Or something.

The same email had another blurb titled, “INSURANCE COMPANIES AT THE TABLE?” There, CAPAF’s crack team of spin-disclosers describe how “health insurance companies and lobbying groups” stood beside President Obama last week to announce their support for reducing spending growth.  The blurb continues:

However, days later, the insurance companies tried to walk back their promises, saying Obama had overstated their commitments. Richard Umbdenstock, the president of the American Hospital Association, wrote to his company’s state and local affiliates to “clarify” that “[t]he groups did not support reducing the rate of health spending by 1.5 percentage points annually.” However, the letter to Obama signed by Umbdenstock and the other insurance leaders specifically pledged…

Umbdenstock and the other insurance leaders”??  Since when do we classify hospitals as insurance companies?  And if “the insurance companies…sa[y] Obama had overstated their commitments,” why not quote the insurance companies?  Could they not find such a quote?

It’s as if CAPAF’s crack team of spin-disclosers has decided to blame every development that might threaten a – ahem – government take-over of health care on the insurance companies.  Now why might they want to do that?  Could it be because insurance companies are less popular than hospitals?

And how would CAPAF’s crack team of spin-disclosers know that?  By listening to a … pollster?

Sarbanes-Oxley under Attack… from the Supreme Court!

Today the Supreme Court agreed to review a case brought by our friends at the Competitive Enterprise Institute that challenges the constitutionality of the Public Company Accounting Oversight Board (PCAOB, pronounced “peek-a-boo”).  The constitutional problem with the PCAOB – there are many policy problems – is that its officers are appointed in an unconstitutional manner. 

Under the Appointments Clause of Article II, section 2, the president has the exclusive power to appoint and remove government officials.  The members of the PCAOB – which enforces the massive regulatory scheme Sarbanes-Oxley imposes on public companies – are appointed by the SEC, however, which then has limited supervisory/removal power.  While this structural defect may seem like a minor technicality, what it means is that the awesome power to set accounting standards – not least Sarbox section 404, which has cost the economy over a trillion dollars – impose taxes, and levy criminal and civil penalties is vested in a bunch of unaccountable bureaucrats.  Entities with similar authority, even those having a modicum of political independence, such as the IRS Commissioner and Federal Reserve governors, are all vetted by the president and the Senate.

The court below (the D.C. Circuit), however, held that PCAOB members are inferior officers and, as such, Congress “may limit and restrict the power of removal as it deems best for the public interest.”  But this gets the Constitution backwards; Congress isn’t allowed to insulate important decisionmakers from political accountability.  As CEI’s press release says:

If the President can pick and remove the PCAOB members, as the Appointments Clause requires, he will be on the hook for their policy failures, and thus have an interest in making them develop sound policies that protect investors and don’t stifle economic growth.  He won’t be able to blame the red tape on an unaccountable agency whose officials he doesn’t select or control.

The Court will hear the case, Free Enterprise Fund v. PCAOB – which I previously blogged about here – in late fall.

Energy Mismanagment

Try as they might, supporters of big government spending cannot make federal programs work very well. The Department of Energy, for example, has been plagued by mismanagement, cost overruns, and scandals for decades.

Today, the Washington Post reports on the poor performance of DoE’s environmental clean-up programs. As I reviewed in the linked essay, these enormously costly programs have been plagued by mismanagement for at least 25 years. Last week, Lou Dobbs lambasted DOE’s National Ignition Facility in California for its huge cost overruns (Hat Tip: Harrison Moar).

I summarize these costly projects and other DoE boondoggles here. With bipartisan support for increases to energy subsidies, we can expect a raft of bipartisan boondoggles developing over coming months and years.

Cultwatch: Union Station, New York Times

obamastoreSnapped this pic at DC’s Union Station this afternoon, on my way from the Amtrak platform to the Metro (where the machine dispensed a metrocard featuring a grinning BHO). Readers planning to visit DC will be happy to know that you can get all your Obama-related tchotchkes and talismans in one convenient locale right after you get off the train.

Say what you will about hapless Jerry Ford, but he had this going for him: nobody ever thought of making an action figure in his image.

In other cult-related news, today’s New York Times has an “Op-Extra” sidebar,with “excerpts from Opinion Online.” Our friend Judith Warner, last seen discussing cougar fantasies about “sex with the president,” weighs in about the shirtless Obama cover on the current Washingtonian:

“Just as having a president who can string a sentence together with subject-verb agreement makes us all look a little bit smarter, just as having a really admirable family in the White House makes us all seem a little less dysfunctional, perhaps having a president who can look good in a bathing suit is in some bizarre way good for the nation.”

Yeah, I mean, God knows it’s been good for Russia.

Obama’s Unerring Instinct for Aides with Authoritarian Instincts

President Obama has appointed New York City health commissioner Thomas Frieden to head the Centers for Disease Control. Public health is an important issue, but as Jacob Sullum points out at Reason, Frieden has a weak grasp of what’s “public” in the world of health:

Frieden, an infectious disease specialist who is known mainly as an enthusiastic advocate of New York’s strict smoking ban, heavy cigarette taxes, trans fat ban, and mandatory calorie counts on restaurant menu boards, embodies the CDC’s shift from illnesses caused by microbes to illnesses caused by lifestyle choices. “Dr. Frieden is an expert in preparedness and response to health emergencies,” Obama said today, ”and has been at the forefront of the fight against heart disease, cancer and obesity, infectious diseases such as tuberculosis and AIDS, and in the establishment of electronic health records.” Some of these things are not like the others. When it comes to justifying the use of force, there is a crucial difference between health risks imposed by others (such as bioterrorists or TB carriers) and health risks that people voluntarily assume (by smoking or overeating, for example). In the former case, even those who believe that government should be limited to protecting individual rights can see a strong argument for intervention; in the latter case, intervention can be justified only on paternalistic or collectivist grounds. Frieden either does not recognize or does not care about this distinction.

Frieden told the Financial Times in 2006 that “when anyone dies at an early age from a preventable cause in New York City, it’s my fault.” That’s a breathtaking vision of the scope and power of government. If you eat butter or salt, or smoke, or climb mountains, or ride a motorcycle, or bungee-jump, or run with the bulls in Pamplona, Dr. Frieden feels that he and the government are personally responsible. This isn’t paternalism; your parents usually let you make your own decisions along about the age of 18. And it isn’t fair to nannies to call it “nanny state” regulation: after all, nannies are paid to take care of children until they can care for themselves; they don’t barge into your home or your bar or your restaurant uninvited, issuing orders to adults. Maybe the right term is food fascism, for the attempt to use force to tell adults what they can and can’t eat, smoke, or purchase.

More on the distinction between public health problems and health problems that are merely widespread here.

And more about Obama’s appointment of “a bunch of statist ideologues who have been waiting years or decades for an election and a crisis that would allow them to fasten on American society their own plan for how energy, transportation, health care, education, and the economy should work” here.