Both the Washington Post and NPR refer to the Tenth Amendment as a “tea party favorite.” I would have thought that tea partiers — and most of the rest of us — liked all 10 of the Bill of Rights, and indeed the rest of the Constitution as well. Now, sure, I guess if the ACLU could publish (in the 1970s or 1980s) the poster below, an “illustrated guide to the Bill of Rights” featuring only the First, Fourth, Fifth, Sixth, Eighth amendments (and only parts of those), along with the Fourteenth, Fifteenth, and Nineteenth amendments, which are not part of the Bill of Rights — well, then, I guess the Tea Party is entitled to have its own favorite parts of the Bill of Rights. But then, it was NPR and the Washington Post, not tea partiers, who suggested that the Tenth Amendment was perhaps uniquely a “tea party favorite.” I would urge the ACLU, the Tea Party, and all other Americans who care about freedom to consider the entire Constitution a “favorite.” Of course, the Tenth Amendment is pretty crucial, reminding policymakers that the federal government does not have any powers not delegated to it in the Constitution.
Cato at Liberty
Cato at Liberty
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Two Reasons Governors Should Stop Implementing ObamaCare
The Washington Post reports:
Practically every week, a Republican governor or lawmaker announces a new effort to kill the health-care law or undercut its implementation.
Unfortunately, many of those same governors are still implementing the law when they should be outright refusing to do so.
In my Kaiser Health News column today, I offer two reasons why (at least) Republican governors should stop implementing ObamaCare:
Swearing an oath to support the Constitution also obligates governors to use lawful means to prevent its unlawful abuse. Governors who believe ObamaCare to be unconstitutional are as duty-bound to stop implementing the law as they are to challenge it in court…
It is the height of fiscal irresponsibility to be making new spending commitments (1) when the federal deficit is $1.5 trillion and state budget deficits are a cumulative $175 billion, (2) when those new commitments create a framework for a massive new entitlement program, and (3) when that new spending comes under the auspices of a law that has been invalidated by one federal court and may be invalidated by the nation’s highest court.
So far, the only governors I’ve seen take a firm stand against implementing the law are Rick Scott (R‑FL) and Sean Parnell (R‑AK), who respectively govern the fourth-largest and the fourth-smallest states. (Disclosure: I served on Rick Scott’s transition team.)
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Spending Restraint Works: Examples from Around the World
America faces a fiscal crisis. The burden of federal spending has doubled during the Bush-Obama years, a $2 trillion increase in just 10 years. But that’s just the tip of the proverbial iceberg. Because of demographic changes and poorly designed entitlement programs, the federal budget is going to consume larger and larger shares of America’s economic output in coming decades.
For all intents and purposes, the United States appears doomed to become a bankrupt welfare state like Greece.
But we can save ourselves. A previous video showed how both Ronald Reagan and Bill Clinton achieved positive fiscal changes by limiting the growth of federal spending, with particular emphasis on reductions in the burden of domestic spending. This new video from the Center for Freedom and Prosperity provides examples from other nations to show that good fiscal policy is possible if politicians simply limit the growth of government.
These success stories from Canada, Ireland, Slovakia, and New Zealand share one common characteristic. By freezing or sharply constraining the growth of government outlays, nations were able to rapidly shrinking the economic burden of government, as measured by comparing the size of the budget to overall economic output.
Ireland and New Zealand actually froze spending for multi-year periods, while Canada and Slovakia limited annual spending increases to about 1 percent. By comparison, government spending during the Bush-Obama years has increased by an average of more than 7–1/2 percent. And the burden of domestic spending has exploded during the Bush-Obama years, especially compared to the fiscal discipline of the Reagan years. No wonder the United States is in fiscal trouble.
Heck, even Bill Clinton looks pretty good compared to the miserable fiscal policy of the past 10 years.
The moral of the story is that limiting the growth of spending works. There’s no need for miracles. If politicians act responsibly and restrain spending, that allows the private sector to grow faster than the burden of government. That’s the definition of good fiscal policy. The new video above shows that other nations have been very successful with that approach. And here’s the video showing how Reagan and Clinton limited spending in America.
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Honoring Our Greatest President
A new Gallup Poll shows that Americans are most likely to say that Ronald Reagan was our greatest president. Reagan had many good qualities, but this is not plausible. Following Reagan in the poll was Lincoln, who despite a devastating war and a vast expansion of government, did end slavery and preserve the union. Then come Clinton and Kennedy, about whom one can only bemoan the historical illiteracy of the voters. They were actually the top two picks among Democrats, followed by Obama.
Only in fifth place do we find George Washington, the man who led the revolution that created the United States and then ensured that it became an enduring republic. Washington’s accomplishments are the subject of my weekly column at the Britannica blog:
Had he been a Caesar, a Cromwell, a Napoleon, we know what he would have done. A French officer who wrote a book about the new country of America told us what he in fact did: “This is the seventh year that he has commanded the army and that he has obeyed the Congress; more need not be said.” But one more thing was said: The Commander in Chief traveled to Annapolis, where the Continental Congress was meeting, returned his commission, and said, “Having now finished the work assigned me, I retire from the great theatre of Action; and bidding an Affectionate farewell to this August body under whose orders I have so long acted, I here offer my Commission, and take my leave of all the employments of public life.” And he created a new order for the ages.
It is appropriate that we still celebrate the birth of George Washington — and in fact the actual federal holiday on the third Monday in February is Washington’s Birthday.
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Wisconsin, Virginia and Public-Sector Unions
The struggle over collective bargaining and government worker benefits continues in Wisconsin. Residents of the Badger State may be interested in comparing their government’s fiscal and union policies with policies in the Old Dominion.
Wisconsin
- Collective bargaining (monopoly unionism) in place for government workers, with about 52 percent of state/local workers in unions (Source: Table 1 here)
- State debt as a share of income: 4.6% (Source: Moody’s)
- State unfunded pension obligations as a share of GDP: 32% (Source: Andrew Biggs)
- Score on quality of state government management: B- (Source: Pew Center)
- Score on Pew’s subcategory for “people” management: B-
Virginia
- Collective bargaining in state and local government banned by a 1993 statute signed into law by Democratic Governor Douglas Wilder
- State debt as a share of income: 2.1%
- State unfunded pension obligations as a share of GDP: 17%
- Score on quality of state government management: A-
- Score on Pew’s subcategory for “people” management: A
Public sector unionism is, of course, just one factor affecting a state’s fiscal and management results. But there is a statistical correlation across the 50 states on unionism and some public policy outcomes (see here and here).
Ending monopoly unionism in state government would not be the apocalyptic event that some Wisconsin protesters seem to think. Indeed, collective bargaining is not a “right” of government workers, but a special privilege that stands in the way of modern and flexible policy management. Hopefully, public sector unions will eventually go the way of private sector unions and the dinosaurs.
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The Internet Kill-Switch Debate
Experienced debaters know that the framing of an issue often determines the outcome of the contest. Always watch the slant of the ground that debaters stand on.
The Internet kill-switch debate is instructive. Last week, Senators Lieberman (I‑CT), Collins (R‑ME) and Carper (D‑DE) introduced a newly modified bill that seeks to give the government authority to seize power over the Internet or parts of it. The old version was widely panned.
In a statement about the new bill, they denied that it should be called a “kill switch,” of course–that language isn’t good for their cause after Egypt’s ousted dictator Hosni Mubarak illustrated what such power means. They also inserted a section called the “Internet Freedom Act.” It’s George Orwell with a clown nose, a comically ham-handed attempt to make it seem like the bill is not a government power-grab.
But they also said this: “The emergency measures in our bill apply in a precise and targeted way only to our most critical infrastructure.”
Accordingly, much of the reportage and commentary in this piece by Declan McCullagh explores whether the powers are indeed precisely targeted.
These are important and substantive points, right? Well, only if you’ve already conceded some more important ones, such as:
1) What authority does the government have to seize, or plan to seize, private assets? Such authority would be highly debatable under any of the constitutional powers kill-switchers might claim. Indeed, the constitution protects against, or at least severely limits, takings of private property in the Fifth Amendment.
and
2) Would it be a good idea to have the government seize control of the Internet, or parts of it, under some emergency situation? A government attack on our private communications infrastructure would almost certainly undercut the reliability and security of our networks, computers and data.
The proponents of the Internet kill-switch have not met their burden on either of these fundamental points. Thus, the question of tailoring is irrelevant.
I managed to get in a word to this effect in the story linked above. “How does this make cybersecurity better? They have no answer,” I said. They really don’t.
No amount of tailoring can make a bad idea a good one. The Internet kill-switch debate is not about the precision or care with which such a policy might be designed or implemented. It’s about the galling claim on the part of Senators Lieberman, Collins and Carper that the U.S. government can seize private assets at will or whim.
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Senator Toomey’s Legislation Would Protect Financial Markets During a Debt Limit Showdown
There will be several pivotal fiscal policy battles this year and the fight over the debt limit may be the most crucial.
This is a “must-pass” piece of legislation, so it will be a rare opportunity for fiscal conservatives in the House to impose some much-needed spending restraint.
But it’s also a high-stakes game. If Obama (or Reid) refuses to accept the fiscal reforms approved by the House and there is a stalemate, the
federal government ultimately would lose its ability to borrow from private credit markets. And while that notion has some appeal for many of us, it almost certainly would require more fiscal discipline than the political system is willing to accept (i.e., actual deep cuts rather than just restraining the growth of spending).
In a bit of reckless demagoguery, the Treasury secretary even says it would mean default — which could cause instability in financial markets.
To preclude that possibility, Senator Toomey of Pennsylvania has a proposal to protect the “full faith and credit” of the United States by requiring the federal government to make interest payments a top priority. Writing for Bloomberg, I opine about the Senator’s proposal.
…the federal government is expected to collect more than $2.1 trillion of tax revenue this year, while interest payments on the publicly held debt will only be about $200 billion. So even without an increase in the debt limit, the Treasury Department will have more than enough revenue to cover its interest obligations and avoid a default. That being said, financial markets are sometimes spooked by uncertainty. And since Treasury Secretary Timothy Geithner began making some irresponsible statements about the risks of default, there is growing interest in legislation by Senator Pat Toomey, a Republican of Pennsylvania, to alleviate the market’s fears. Quite simply, Toomey’s bill would require the federal government to fulfill obligations to bondholders before making any other disbursements. …If the Toomey legislation is adopted, fiscal reformers will have a powerful weapon at their disposal. Secure in the knowledge that default no longer is a possibility, they can be much tougher in their negotiations with the politicians who favor the status quo. This explains the attacks against the Toomey plan. Some even argue that the law requires the government to pay Chinese bondholders (gasp!) before it pays Social Security recipients. This is demagoguery. The federal government will collect more than enough revenue to finance the majority of budgeted outlays. Social Security checks will be disbursed, unless the Treasury secretary decides otherwise. In any event, the attack is rather hollow since it’s almost always made by people who say that default would be a cataclysmic event. What they really mean, it seems, is that deficits, debt and default are bad, and only higher taxes are the solution. That’s what this debate is all about. We have a fiscal crisis caused by too much spending, not too little taxes. Restraining the size and scope of government is contrary to the interests of the iron quadrangle of politicians, interest groups, lobbyists and bureaucrats who benefit from ever- expanding government.