Politicians Need To Be Needed

If you’re a successful business in America, you either quickly open a lobbying office in Washington, or Washington makes you regret that you didn’t.

“If you want to get involved in business,” Sen. Orrin Hatch warned technology companies at a conference in 2000, “you should get involved in politics.”

Hatch was referring to the shortcomings of then-software king Microsoft, which he had spent most of the previous decade harassing from his perch as Judiciary Committee chairman. The message was clear: If you become successful, you must hire lobbyists, you must start a political action committee, and you must donate to politicians. Otherwise Washington will make your life very difficult.

Hatch’s crusade against Microsoft was a formative moment in the cozy relationship between K Street and Capitol Hill. That coziness has become a prime target of the Tea Party in recent years — and so has Orrin Hatch, who faces a primary Tuesday against conservative challenger Dan Liljenquist.

People think money drives politics. It doesn’t. Money is merely the vehicle. Power drives Washington. As Carney points out, Hatch has spent a good deal of his time on the Judiciary Committee targeting Microsoft. So he wasn’t mad that the company wasn’t giving him money—they weren’t giving to his opponents, either. Hatch was angry that the company wasn’t acknowledging that it needs Washington, that it needs people like him. He finds that offensive. So people like Hatch make companies like Google need people like Hatch.

More:

. . . it grated on Hatch and other senators that Gates didn’t want to want to play the Washington game. Former Microsoft employee Michael Kinsley, a liberal, wrote of Gates: “He didn’t want anything special from the government, except the freedom to build and sell software. If the government would leave him alone, he would leave the government alone.”

This was a mistake. One lobbyist fumed about Gates to author Gary Rivlin: “You look at a guy like Gates, who’s been arrogant and cheap and incredibly naive about politics. He genuinely believed that because he was creating jobs or whatever, that’d be enough.”

Gates was “cheap” because Microsoft spent only $2 million on lobbying in 1997, and its PAC contributed less than $50,000 during the 1996 election cycle.

“You can’t say, ‘We’re better than that,’ ” a Microsoft lobbyist told me on Friday. “At some point, you get too big, and you can’t just ignore Washington.”

You know what happens next . . .

After the Hatch hearings, Microsoft complied. Its PAC increased spending fivefold in each of the next two elections. In the 2010 elections, Microsoft’s PAC contributed $2.3 million to House and Senate candidates. The PAC has contributed the maximum $10,000 to each of Hatch’s last two campaigns.

Back before the antitrust case, Microsoft’s tiny lobbying contingent sat in the company’s local sales office in Chevy Chase. Since the Hatch hearings, Gates’ company has poured more than $100 million into K Street’s economy, hiring up members of congress and Capitol Hill staff, many of whom then became top fundraisers — such as Republican Jack Abramoff and Democrat Steve Elmendorf.

And of course now that Microsoft has a strong Washington presence, it uses its influence to lobby the government to harass its competitors. Like Google, which must then open its own Washington lobbying outfit in response. And the cycle starts all over again. (If you’re really on your game, you then hire the government regulators you’ve lobbied to investigate your rival to come work for you.)

A politician like Hatch will always demand that powerful people kiss his ring. It’s why people like Hatch go into politics. The proper response is Gates’ initial reaction—to tell people like Hatch to pound dirt. The problems begin—and the corruption beings— when people like Hatch have the power to force people like Gates to respect them. So long as there’s hell to pay for not respecting Washington, no “get money out of politics” law is going to rid the city of corruption.

I don’t always agree with the Tea Party. But if the group helps oust Washington dinosaurs like Hatch, that can’t be a bad thing.

SOURCE

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Obama Administration - Terrorists and Those Who Oppose Terrorism are the Same

Armstrong Williams

In 1993 Islamic terrorists launched an war on America. With a Rider Truck bomb, they attacked in the heart of NYT, trying to topple the World Trade Center. They were led by a terrorist know as the Blind Sheik, the head of Gamaa Islamiya, an Islamic extremist terrorist organization based in Egypt, who was orchestrating a wave of attacks trying to blow up major landmarks - the Holland and Lincoln tunnels and the George Washington Bridge - and assassinate a U.S. senator and New York Jewish community leader.

The 1993 attack on the World Trade Center was led by Ramzy Yousef. On September 11th, 2001, Al Qaeda terrorists led by Yousef's cousin, Khalid Sheik Mohammed and Osama Bin Laden, returned to finish the job.

Former US government prosecutor Andrew McCarthy writes in his book, A Memior of the Jihad, which details the case and his prosecution of the 1993 terrorist plots, there is a direct connection between the 1993 attack on New York and the bigger plot to attack New York by Egyptian based Gamaa Islamiya and the Al Qaeda attacks on the United States on 9/11.

America has never been confused about who is a terrorist and who is not.

But it appears that the Obama Administration does not know the difference.

Last week, the Obama Administration paid for a Gamaa Islamiya terrorist to visit America. They invited him into the State Department and the White House, where he met high ranking officials.

He should never have gotten into America, let alone meet the Deputy Secretary of State!

What message are we sending to those in Egypt and beyond who are FIGHTING TERRORISM as our partners, united in the defense of liberty? Is this the new Obama Administration policy on Egypt - terrorists and those who oppose terrorism are the same? How can we lend legitimacy to Islamic extremists terrorists bent on global domination and coercive dominion over their society at home?

We are not agnostic about the outcome of events in Egypt, where forces of Islamic illiberalism seek to take over the state through Democracy. With no standards in sight, every terrorist is free to call himself a politician. That dystopia is abhorrent. America knows better. Does President Obama?

When the Gamaa Islamiya terrorist, who in today's Egypt calls himself a "politician", got to meet the President's deputy national security advisor this week in Washington, he had one request. He wanted a "gift to the revolution."

He asked for the Blind Sheik to be released from jail, where he is rotting for life, convicted of his effort to kill thousands of Americans.

One can only image what kind of "revolution" this man and his terrorist colleagues want to cement.

Rather than welcoming these poisonous players, President Obama and America should make absolutely clear we stand with liberty and tolerance, and are forever and inexorably opposed to Islamic radicalist terrorism.

Call yourself whatever you want. But know this: America knows who you are. You are a terrorist and you are not welcome here.

To fix this colossal mistake, President Obama should make it known to the world exactly what America’s policies are toward terrorism and the future of Egypt. He should use plain English so that everyone can understand. Obama should avoid the measured and philosophical constructions he often uses in his speech, which some regard as a sign of his intellectual prowess and pragmatism and others attribute to his unwillingness to articulate clear positions on sensitive topics.

Terrorists, whether actively engaged in blowing people up and committing atrocities or masquerading as politicians in Egypt today, need to get this message: America does not and will not stand with those who use violence to achieve their political means. We oppose terrorism, and will always stand with those who fight this deadly scourge.

SOURCE

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Blogger Aaron Walker Latest Swatting Victim

Another conservative blogger has become the victim of a "swatting," where a false report of a murder sends the police, armed and ready, to a victim's home. The victim this time was blogger Aaron Walker, who had just this morning won a legal victory against convicted felon and leftist activist Brett Kimberlin.

Breitbart News contacted the Prince William County, Virginia police department to confirm the swatting. A dispatcher affirmed that police were called to the home of Mr. Walker based on a fraudulent 911 call. The individual did not take the call and could not disclose any details of the call's content but immediately confirmed that Mr. Walker had been swatted.

The swatting occurred hours after Walker's hearing. A judge had modified a previous ruling that prohibited Mr. Walker from exercising his right to free speech.

Walker told Breitbart News that he was home with his wife this evening at approximately 6:00pm when there was a "pretty insistent" knock at his door. Walker answered to find about six police cars in the street and two officers taking positions against the wall with M4 rifles. Since he was aware of the previous swattings of Patrick "Patterico" Frey, Erick Erickson, and Mike Stack, Mr. Walker asked the police if someone had called and claimed he had killed his wife, and police confirmed that that was the case.

In a statement to Breitbart News, Walker said, "This is obviously very upsetting but my wife and I are fine. Whoever did this had the intent to put our lives in danger."

SOURCE

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Nobody knows (officially) what food stamps buy

Seeing they currently cost the taxpayer around $100 billion p.a., isn't that a little strange?

Legislation seemingly designed to protect the industry goes so far as to say that anyone who releases the amount of food stamp dollars paid to a store can be jailed.

Profiting from the poor's taxpayer-funded purchases has become big business for a mix of major companies and corner bodegas, which have spent millions of dollars lobbying Congress and the USDA to keep the money flowing freely.

The National Association of Convenience Store Operators alone spends millions of dollars on lobbying yearly, including $1 million in the first quarter of this year.

In February, 7-Eleven hired a former aide to House Speaker John A. Boehner, Ohio Republican, to lobby on "issues related to the general application and approval process for qualified establishments serving SNAP-eligible recipients."

The USDA is notoriously secretive about who receives its money, relying on weak legal reasoning, said Steve Ellis of the watchdog group Taxpayers for Common Sense.

"USDA hides behind a specious proprietary data argument: The public doesn't want to know internal business decisions or information about specific individuals' finances," he said. "The USDA sees retailers, junk food manufacturers and the big ag lobby as their customers, rather than the taxpayer."

The agency also has no idea what type of food the benefits are buying, even though the combination of universal bar codes and benefit cards makes that entirely feasible.

"It's one of those questions that frankly those of us who have been working on this issue have been struggling with a long time because we need to see the data. The industry looks at it as proprietary. The USDA doesn't track where that money goes," said Beth Johnson, a former Senate Agriculture Committee and USDA staffer who now consults for the Snack Food Association.

She noted that stores have breakdowns of products bought with food stamps but declined to share them with the USDA.

The junk food lobby appreciates the informational void.

‘Anecdotal info'

Susan Smith of the National Confectioners Association, a candy trade group, dismissed assertions that food stamp recipients commonly buy candy and soda as "anecdotal info," while declining to call for the collection of statistics.

SOURCE

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ELSEWHERE

FL: TSA thug spills victim’s grandfather’s ashes: "A TSA worker at an airport in Florida violated the agency’s policy when she opened a container containing the ashes of a passenger’s grandfather and spilled them on the terminal floor. ... John Gross of Indianapolis was visiting relatives in Florida when an uncle, acting on the wishes of the family, gave Gross a portion of his grandfather’s ashes. ... Gross was presented with the ashes in a tightly sealed jar, marked 'human remains,' which he assumed would warrant enough respect that he would be able to board his flight home unmolested. He was wrong."

Assassination, conformity, and conscience: "As most every American knows, we now live in a country in which the ruler possesses the unfettered power to assassinate his citizens. What an extraordinary situation. Who would have ever thought that America would end up with a governmental system in which the ruler possessed such omnipotent power?"

Why is it okay to pay an intern $0? Or, liberal insanity on the minimum wage: "One benefit of a job at any price is the skills and learning experience -- learning to engage with customers and co-workers, to show up on time, manners, dress code, and so on. This is, in fact, one reason some people are willing to serve as 'interns' for no pay: for the work experience, contacts, resume padding. And this an absurdity in the very idea of the minimum wage: it’s legal to offer to pay someone, say, $10 per hour for a certain job, or more, and it’s legal to offer to pay them $0 per hour (internship), but it’s illegal to offer them something in-between."

Putin visits West Bank, tours key Christian shrine: "Visiting Russian President Vladimir Putin praised his Palestinian counterpart Tuesday for what he said was a "responsible" position in negotiations with Israel, frozen for nearly four years, and said Russia has no problem recognizing a Palestinian state. Putin also offered veiled criticism of Israel, saying unilateral actions — an apparent reference to Israeli settlement construction on war-won land — is not constructive. The Russian president spoke at the end of a visit to the biblical West Bank town of Bethlehem, with Palestinian President Mahmoud Abbas by his side. Putin inaugurated a Russian cultural and language center in Bethlehem and toured the church built over the traditional birth grotto of Jesus."

Four U.S. Navy minesweepers arrive in the Gulf: " Four U.S. minesweepers have arrived in the Gulf to bolster the U.S. Fifth Fleet and ensure the safety of shipping routes, the U.S. Navy said, as an Iranian military chief suggested on Monday that Iran might try to block the Strait of Hormuz to defend its interests. The four additional mine countermeasures (MCM) ships arrived on Saturday and are scheduled for a seven-month deployment in an area of operations that includes the Gulf, Gulf of Oman, Red Sea and parts of the Indian Ocean. The area also includes two other critical shipping choke points of the Suez Canal and the Strait of Bab al Mandab between the southern tip of Yemen and Africa."

Iran in trouble with the Russian bear too: "The Caspian Sea, once a strategic backwater, is quickly becoming a tinderbox of regional rivalries -- all fueled by what amounts to trillions in petrodollars beneath its waves. Observers gained a first glimpse into this escalating arms race last fall, when Russia and Kazakhstan held joint military exercises on the Caspian, which abuts Iran and several former Soviet republics. But a scoop by a Russian newspaper, Moskovsky Komsomolets, told a different story. The newspaper got hold of a map apparently showing the real scenario of the exercise: the defense of Kazakhstan's oil fields from several squadrons of F-4, F-5, and Su-25 fighters and bombers. The map didn't name which country the jets came from, but the trajectory and the types of planes gave it away: Iran."

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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The Master Narrative Nobody Admits: Centralization Has Failed

Nobody expected the sudden collapse of the Soviet Union. Will the steady, unceasing Sovietization of America end up the same way? Will there in the end be nobody willing to enforce the steady torrent of new rules and decrees that pour out from everywhere? Will Congress become as irrelevant as the Politburo?

The primary "news" narrative may be the failure of the euro, but the master narrative is much, much bigger: centralization has failed. The failure of Europe's "ultimate centralization project" is but a symptom of a global failure of centralization.

Though many look at China's command-economy as proof that the model of Elite-controlled centralization is a roaring success, let's check in on China's stability and distribution of prosperity in 2021 before declaring centralization an enduring success. The pressure cooker is already hissing and the flame is being turned up every day.

What's the key driver of this master narrative? Technology, specifically, the Internet. Gatekeepers and centralized authority are no match for decentralized knowledge and decision-making. Once a people don't need to rely on a centralized authority to tell them what to do, the centralized authority becomes a costly impediment, a tax on the entire society and economy.

In a cost-benefit analysis, centralization once paid significant dividends. Now it is a drag that only inhibits growth and progress. The Eurozone is the ultimate attempt to impose an intrinsically inefficient and unproductive centralized authority on disparate economies, and we are witnessing its spectacular implosion.

Centralization acts as a positive feedback, i.e. a self-reinforcing loop that leads to a runaway death spiral. Centralize the entire banking sector into five corporations and guess what happens? They buy access to the highly centralized power centers of the Federal government. Like the HIV virus, centralized concentrations of capital like the five "too big to fail" banks disrupt the regulatory "immune response" that was supposed to control them.

This feedback between centralized capital and centralized government cannot be controlled by more rules and regulations--the two partners in domination will subvert or bypass any such feeble attempts with shadow systems of governance and control of the very sort we now see dominating economies and governments around the globe.

Centralization itself is the disease, and devolving power to decentralized nodes based on the transparent power of the Web is the cure. The authorities and Elites attempting to maintain their centralized fiefdoms of power are desperately trying to control the technology of the Web, but disruptive technology that offers stupendous improvements in efficiency and productivity cannot be put back in the genie's bottle. The authorities can try, but they will fail.

The analog to the printing press is but one example. The centralized authorities of the Holy Roman Empire tried to limit the citizens' access to the Bible and other books, and as their failure became evident they ramped up their oppression to extremes: printing the Bible was a "crime" punishable by death.

Despite their almost total dominance of society and the economy, the centralized authorities failed to limit the technology of printing and distributing books.

Centralized authorities face an impossible double-bind: if they limit access to the Web, their economic growth is doomed, and thus eventually so is their power as the impoverished and oppressed populace rises up to overthrow their failed Elites. But if they enable widespread access to the Web, then the populace eventually realizes the centralized authorities and Elites are burdensome hindrances to liberty and prosperity.

The highly centralized Elites controlling China are engaged in a desperate campaign to constrain the Web in China to what they deem supportive of their regime. The "Great Firewall of China" reportedly has tens of thousands of employees monitoring and censoring content. Hyper-nationalistic rants are "enabled" to spread virally, while inquiries into official over-reach and misconduct are quickly suppressed.

You can't fool Mother Nature for long, and the Chinese are trying to tame forces akin to Nature.

We already saw this dynamic play out with the Soviet Union. In the former U.S.S.R., networked computers were understood to be a serious threat to political control by centralized authorities, so access was strictly limited. Scientists and mathematicians in the U.S.S.R. were relegated to working with paper and pencils because this was "politically acceptable."

Denied access to transformative technologies, the economy and society of the U.S.S.R. withered and eventually expired.

China has played a very quick game of catch-up based on a unique set of factors:

1. An abundance of low-hanging fruit to be picked, both domestically and globally. If you watch documentaries filmed in China in the early 1980s, villagers were harvesting bamboo by hand and the village "theater" was one black-and-white television. By the time I first visited China in 2000, there was already a glut of cheap TVs and massive overcapacity in TV manufacturing.

2. An abundance of mobile global capital to fund the initial industrialization.

3. The ease of stealing/copying existing technology. It's always easy to steal/copy existing technologies: strip down the motorbike to its parts, machine-tool a factory to make the parts and voila, you are soon producing "Yamaka" motorbikes in quantity (and drinking "Starbuck" coffee).

But once the low-hanging fruit has been picked, you have to develop new technologies on your own to keep growing. The U.S.S.R. was able to keep up by stealing technology for decades, but once the pace of innovation slipped from centralized labs (where spies could be highly effective) to decentralized networks of innovation, the game was over: stealing technology became inefficient and/or impossible on the necessary scale and timeline to keep up.

The Web also feeds social innovations. Centralized authorities move with glacial trepitude because any change, no matter how modest, steps on the exquisitely sensitive toes of some vested interest, protected fiefdom or favored Elite. So while the centralized Elites and their apparatchiks in government are detailing more regulations of the buggy-whip industry, the entire industry is bypassed by social and technological forces beyond the control of the Elites and their flunkies and factotums.

The forces of centralized authority will not relinquish their power easily. In Egypt and many other quasi-feudalistic nation-states, the Empire of centralized Elite authority is striking back, often via the "shadow" systems of governance and control they established behind the thin veneer of legitimacy created by their organs of propaganda.

But all centralized systems, open and shadow alike, act as heavy taxes on the society and economy. Their attempts to retain control will fail because of the conundrum outlined above: if they succeed in stifling the Web and the powers of decentralization, their economy will wither and their impoverished people will eventually tire enough of poverty to rise up and crush their oppressive Elites.

If they allow access to the Web and the innovation-driven power of decentralized networks of knowledge, collaboration and information, then their political and financial control will be eroded. Either way, disruptive technologies will dismantle their power base and wealth.

Here in the U.S., our Central State and Financial Elites are also desperately trying to maintain their control, even as their control strangles the economy and social innovation. Being controlled by five "too big to fail" banks and six media corporations is like being dominated by the buggy-whip industry and the horse-manure-collection industry.

The way forward is to dismantle the five banks and six media companies and allow 500 banks to compete in a transparent market but be unable to buy other banks or other companies. If there are 500 banks that are forced to compete in a transparent marketplace, it will be very difficult for those corporations to purchase the political power the TBTF banks own.

The Federal Reserve is the ultimate centralized horse-manure-collection industry. Like the Catholic Church trying to control Gutenberg's printing press, the Fed is terrified of transparency, liberty, competition and the technological forces of networked decentralization. Though those in power cannot dare contemplate it, their highly centralized institution and the chokehold of its authority are already doomed.

Centralized control leads to stagnation and poverty, which leads to the overthrow of oppressive political Elites. If the centralized Elites attempt to corral the Web to serve their own narrow self-interests, it will overflow their narrow channels and erode their power. Either way, their attempts to control disruptive technology will fail. Their only choice is which path to destruction they wish to tread.

SOURCE

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On Reason TV, Andrew Ferguson Discusses the Parasite Economy of Washington, DC

Back in February, I posted this startling map showing that 10 of America’s 15-richest counties are the bedroom communities surrounding Washington, DC.

There’s a lot of money in Washington because federal bureaucrats are wildly overpaid, as I document in this video, and also because there is a huge shadow workforce of contractors, consultants, and lobbyists who have their snouts buried deeply in the public trough.

In an interview for Reason TV, Andy Ferguson talks about how these well-paid parasites have created a bubble economy in Washington.



And you know it must be true because even the leftists at Politico wrote a story acknowledging how the DC area was thriving at a time when the rest of America was struggling.

In other words, the poor and middle-class people in the real world are paying high taxes to subsidize the indolent moochers of Washington.

You would think that’s one kind of redistribution that the left would oppose. Heck, it’s almost enough to make you think that it would be a good idea to reduce the size and scope of the federal government.

SOURCE

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Thomas Sowell has some fun with the trash that Leftists talk

Since this is an election year, we can expect to hear a lot of words -- and the meaning of those words is not always clear. So it may be helpful to have a glossary of political terms.

One of the most versatile terms in the political vocabulary is "fairness." It has been used over a vast range of issues, from "fair trade" laws to the Fair Labor Standards Act. And recently we have heard that the rich don't pay their "fair share" of taxes.

Some of us may want to see a definition of what is "fair." But a concrete definition would destroy the versatility of the word, which is what makes it so useful politically.

If you said, for example, that 46.7 percent of their income -- or any other number -- is the "fair share" of their income that the rich should have to pay in taxes, then once they paid that amount, there would be no basis for politicians to come back to them for more -- and "more" is what "fair share" means in practice.

Life in general has never been even close to fair, so the pretense that the government can make it fair is a valuable and inexhaustible asset to politicians who want to expand government.

"Racism" is another term we can expect to hear a lot this election year, especially if the public opinion polls are going against President Barack Obama.

Former big-time TV journalist Sam Donaldson and current fledgling CNN host Don Lemon have already proclaimed racism to be the reason for criticisms of Obama, and we can expect more and more other talking heads to say the same thing as the election campaign goes on. The word "racism" is like ketchup. It can be put on practically anything -- and demanding evidence makes you a "racist."

A more positive term that is likely to be heard a lot, during election years especially, is "compassion." But what does it mean concretely? More often than not, in practice it means a willingness to spend the taxpayers' money in ways that will increase the spender's chances of getting reelected.

If you are skeptical -- or, worse yet, critical -- of this practice, then you qualify for a different political label: "mean-spirited." A related political label is "greedy."

In the political language of today, people who want to keep what they have earned are said to be "greedy," while those who wish to take their earnings from them and give it to others (who will vote for them in return) show "compassion."

A political term that had me baffled for a long time was "the hungry." Since we all get hungry, it was not obvious to me how you single out some particular segment of the population to refer to as "the hungry."

Eventually, over the years, it finally dawned on me what the distinction was. People who make no provision to feed themselves, but expect others to provide food for them, are those whom politicians and the media refer to as "the hungry."

Those who meet this definition may have money for alcohol, drugs or even various electronic devices. And many of them are overweight. But, if they look to voluntary donations, or money taken from the taxpayers, to provide them with something to eat, then they are "the hungry."

I can remember a time, long ago, when I was hungry in the old-fashioned sense. I was a young fellow out of work, couldn't find work, fell behind in my room rent -- and, when I finally found a job, I had to walk miles to get there, because I couldn't afford both subway fare and food.

But this was back in those "earlier and simpler times" we hear about. I was so naive that I thought it was up to me to go find a job, and to save some money when I did. Even though I knew that Joe DiMaggio was making $100,000 a year -- a staggering sum in the money of that time -- it never occurred to me that it was up to him to see that I got fed.

So, even though I was hungry, I never qualified for the political definition of "the hungry." Moreover, I never thereafter spent all the money I made, whether that was a little or a lot, because being hungry back then was a lot worse than being one of "the hungry" today.

As a result, I was never of any use to politicians looking for dependents who would vote for them. Nor have I ever had much use for such politicians.

SOURCE

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ELSEWHERE

In praise of consumerism: "We generally hear the term ‘Consumerism’ used as a term of abuse, usually by religious movements, pro-state economists, environmentalists and so on. I would argue that, properly constituted, a ‘consumerist’ society is exactly the type of society that we should be striving for. However, part of the pejorative use of the term comes from a particular meaning attached to it."

Litigious Apple loses one: "A US judge on Friday ruled that Apple cannot pursue an injunction against Google's Motorola Mobility unit, effectively ending a key case for the iPhone maker in the smartphone patent wars. The ruling came from Judge Richard Posner in Chicago federal court. He dismissed the litigation between Apple and Motorola Mobility with prejudice, meaning it can't be refiled."

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Obama's new America again (Quite Soviet)

Feds Jail New Mexico Family, Seize Everything They Own for Being Honest Legal Firearms Dealers

This has got to be one of the grossest miscarriages of law enforcement that I’ve read about lately.

Rick and Terri Reese, along with their two sons Ryin and Remington ran a federally licensed gun shop in Deming, New Mexico. They kept meticulous records of all the firearms and ammunition they purchased and which were purchased by customers. They performed the required FBI background checks when necessary. Basically, they ran their gun shop by the letter of the law for 17 years.

Even much of their hired help was legal as the Reeses often hired law enforcement officers who were either retired or off duty, to work in the gun shop. This brought in a substantial amount of business with the law enforcement community and agencies.

In 2011, Terri noticed a customer that had made an unusually large number of purchases. The customer, Penny Torres, told Terri that they were having a family reunion at a ranch in the area and that they all liked to shoot. Terri was suspicious of Torres story and being the law abiding gun dealer she is, she reported her suspicions to one of her friends that worked with the Luna County Sheriff’s Department. Terri told him that she suspected Torres might be a ‘straw buyer’ (someone who purchased guns for illegal purposes such as going over the Mexican border to the drug cartels, kind of like what the US government did with Operation Fast and Furious).

The Luna County Sheriff’s Department officer Terri reported to was someone she trusted and who she always turned to if they had any need for law enforcement. He told her that he would promptly report it to ATF and would let her know what happened with the case.

Torres was subsequently arrested, but ended up making a deal with the feds for leniency by implicating the Reese family as knowingly selling guns that were to illegally cross the border into Mexico. This launched an investigation by a recently formed federal agency known as Homeland Security Investigators (HSI), who set up a sting operation to entrap the Reeses.

HSI hired a confidential informant called Roman, who was seeking a reduced sentence for human trafficking and drugs smuggling. Roman agreed to go to the Reese’ gun shop, purchase weapons and drop hints that they would be heading across the border into Mexico but to do so in such a way as not to alarm them and cause them to refuse the sale. Roman was fitted with a wire to record everything that was said. HSI figured that if the Reeses sold the guns to Roman, that they could then arrest them on gun walking charges.

Shortly after Roman made his gun purchases, the feds swooped in to arrest all four members of the family. HSI and local law enforcement raided the gun store and the Reese home. They came in helicopters, armored vehicles and too many heavily protected and armed law enforcement officers to count. Not only were the four members of the Reese family arrested, but the feds confiscated every gun, all ammunition from both their store and their home, then they confiscated the home, cars, bank accounts, coin collections and virtually everything the family owned.

Each member of the family was eventually taken to a different jail or prison facility to be held without bail until their trials. The prosecution argued that they were flight risks or might even stage a Ruby Ridge type stand off because their home had a well and solar panels and they had found guns on the premises. Can you imagine that? They actually found guns and ammunition in the house and place of business of federally licensed gun dealers. It was also noted by the prosecution that Rick and Terry Reese were part of the local Tea Party, which must have made them look violent in the eyes of the prosecutor.

Six months after being arrested, Terri Reese was allowed to post bail, but the courts continued to withhold bail for the father and two sons.

Recently, the first preliminary hearing was held for the four members of the Reese family. According to a WND report, the prosecution revealed a number of revelations during the preliminary hearing. For one thing, Roman spoke little broken English and that most of the hinting of guns going to Mexico was said in Spanish, which none of the Reese family knew or understood. However, the transcripts that the court had to read had all been translated into English, so that it appeared that the conversation had taken place in English.

Additionally, the prosecution admitted that all of the Reese’ gun sales had been properly logged and all transactions appeared to have been legal. They also admitted that the Reeses has paid all of their taxes and that there was no evidence of any under the table transactions and that all banking and financial evidence indicated that all members of the family never received any money other than their normal paychecks.

When the defense pointed out to the prosecution that they used so many law enforcement personnel in their store, the prosecution replied that it didn’t matter because ‘a lot of them [cops and former cops] are dirty.’

Now the Reese family is awaiting the main trial which is scheduled for some time in July. Since all of their worldly possessions, even personal items accumulated over 25 years of marriage, have been confiscated, they have no money with which to use to pay for their defense. And if by some miracle they are acquitted of all charges, they have no home and no business to return to.

What galls me to spit in anger is that this family, even by the prosecution’s own statements in the preliminary trial, have never done anything wrong. Their lives have been raped by the federal government based on promises made to two convicts in lieu of lighter sentences. Roman’s statements should not be admissible since he spoke Spanish and the Reeses don’t. This is a horrible case of entrapment and what’s worse is that they are accusing the family of doing what the feds did in Operation Fast and Furious and NO ONE IS BEING PROSECUTED in that case!

We need to pray that the Reese family is exonerated and that the feds are forced to replace all of their possessions, guns, ammunition, house, cars, bank accounts, coin collection and pay for wrongful imprisonment. If anyone belongs in jail for gun walking, it’s Eric Holder, not the Reese family.

SOURCE

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The Great Destroyer

Frank Turek

“Politics is fought between the forty yard lines,“ remarked Charles Krauthammer just after Obama was elected in 2008. Krauthammer is right about nearly everything, but his rule clearly warrants an exception when applied to Barack Obama and his administration. Attorney David Limbaugh shows why in his new book, The Great Destroyer: Barack Obama’s War on the Republic.

This is the second book in Limbaugh’s very readable and insightful narrative of Barack Obama’s Presidency. The Great Destroyer picks up where Crimes Against Liberty left off in 2010. Limbaugh meticulously narrates how the President has been striding to the liberal goal line with nearly every policy, appointment and statement since taking office. Almost without exception, Obama implements or supports policies that negate America’s founding principles—individual liberty, limited government and the rule of law are among the casualties in the President’s war on the Republic.

You say, “’War on the Republic.’ That’s a little strong, don’t you think?”

You might think so until you read the book. I am a political junkie, but even I was shocked to see the extreme scope of Obama’s anti-American assault.

“Oh, but this was written by a Limbaugh, and Limbaughs are well known for their conservatism.”

If any liberal or so-called “independent” judgmentally dismisses The Great Destroyer simply because Limbaugh is a conservative, point out that people can present evidence objectively even if they personally are not neutral. First, neutral people rarely have the interest or expertise to write books! But more importantly, you can’t dismiss what Limbaugh says simply because he supports conservative policies. That’s a fallacy that cuts both ways—you’d have to dismiss everything Obama says because he supports liberal policies. The truth is, everyone has political beliefs. The issue is not those beliefs, but the evidence one presents!

David Limbaugh presents a wealth of evidence that Barack Obama is inflicting unprecedented injuries on America and the liberties of its citizens. He does the work the mainstream media refuses to do. In addition to using neutral sources, such as the Congressional Budget Office for financial data, Limbaugh quotes several liberals, administration officials, and, of course, Barack Obama himself to make the irrefutable case that Obama’s ultra-liberal positions are resulting in catastrophic negative effects for America. Unfortunately, his case is quite compelling.

The Great Destroyer is well organized by topic. Chapter headings include: The War on America, The War on Our Culture and Values, The War on the Economy, The War on Our Future, The War on Business, The War America’s National Security, and several others. The book also includes several helpful charts that display, at a glance, the current and impending disaster known as Obama’s economic policies.

Since The Great Destroyer is over 500 pages (including nearly 100 pages of endnotes), I can only summarize a few revelations that Limbaugh provides. These are from just two chapters of The Great Destroyer.

From “The War on Values and Culture”:

In prepared remarks, Vice President Biden said he had no objections to China’s forced abortion policy.

With several new policies and edicts, Obama has ensured that federal funds are now paying for abortion. He is clearly the most pro-abortion president in history.

Education Secretary Arne Duncan warned public school districts about blocking students from forming gay themed organizations.

HHS administrator Pam Hyde declared, “Your federal government has finally come out of the closet in support of LGBT youth.” HHS Secretary Kathleen Sebelius said, “I want to tell you, you have a friend in this administration, who will stand beside you each and every step along the way.”

Obama’s HHS website promoted the idea that kids may “experiment” with homosexuality.

The Obama Administration initially refused to publicize the results of their own study that abstinence education programs actually work.

President Obama declared his support for “age-appropriate” sex education for kindergarteners.

The survey of our military men and women about “Don’t Ask Don’t Tell” may have been a sham to mislead Congress—the executive report of the findings was written before the survey was actually taken!

Attorney General Eric Holder and Obama appear to be in collusion in refusing to defend, and even attempting to overturn, democratically decided laws defining marriage as between one man and one woman.

In July 2011, Holder ordered Banks to relax mortgage qualifications for the poor—the same insane policy that led to the housing crash in the first place!

Obama’s Justice Department refuses to prosecute several grievous injustices including video-taped voter intimidation by Black Panthers, and video-taped instances of potential sex trafficking, prostitution and underage abortions by Planned Parenthood.

Obama not only lifted the ban on federal funding of embryonic stem cell research (which has yet to cure any human being of a disease), he rescinded President Bush’s executive order to fund adult stem cell research (which has resulted in treating more than a hundred diseases and medical conditions). Obama is the “anti-science” president, not Bush!

Obama’s stance against the freedom of religious organizations to hire people with their values was so extreme that the Supreme Court ruled against him 9-0 (even his own liberal appointees disagreed!).

From “The War on the Economy”:

Contrary to his claim to save or create 3.5 million jobs, Obama has actually lost almost 4.1 million jobs – a jobs deficit of 7.6 million.

February 2012 was the worst one-month debt in U.S. history: $219 Billion (Bush’s deficit for all of 2007 was less than that!).

Four years in a row, Obama’s deficits have or will be in excess of $1 trillion, dwarfing President Bush’s deficits.

Obama has added more to the debt in three plus years than Bush added in eight.

Obama and his team have engaged in accounting gimmickry and unrealistic rosy predictions in an attempt to make their dismal plans look less dismal.

New research into 108 national economies shows that government “stimulus” spending—staunchly advocated by Obama—tends to have a net negative effect on the economy.

Despite promising not to raise taxes on those making less than $250,000 per year, ObamaCare will result in 17 new taxes or penalties that will burden all Americans.

Costs for ObamaCare will be nearly double original estimates (and most of the program hasn’t even started yet!).

Despite the President promising that people could keep their current health insurance plan, multiple sources report that a majority will loose their current coverage under Obamacare.

Union members comprise only 12 percent of all employees, but the Obama Administration has granted them 50.3 percent of all ObamaCare waivers. (By the way, if ObamaCare is such a good deal, why does anyone want a waiver?)

David Limbaugh provides more revelations in these two chapters and the other ten. You really need to get the book to appreciate the full breadth of the destruction—destruction that you are not going to hear from the mainstream media.

In the era of Obama, politics in America is no longer fought between the forty yard lines. Americans need to read The Great Destroyer to encourage enough voters to begin running the ball the other way—back to the principles that made America great.

SOURCE

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Supreme Court decision protects workers, deals another blow to public employee unions

–The Supreme Court deserves praise for their 7-2 decision today in the Knox v. SEIU case, which determined that a state cannot require its employees to pay a special union fee that will be spent for political purposes without first giving the employees information about the fee and a chance to object to it.

It is simply an unconscionable violation of public employee worker rights for any state to compel their civil servants to pay special political fees into a union, so that union can pump that money into the pockets of politicians. The Supreme Court got it 100 percent correct when they protected workers from this abuse.

As the individual decisions of thousands of public employee union members have proven in Wisconsin who have stopped making union dues payments after they ceased to be compelled to do so, unions depend upon the state forcing people to join and pay dues. When individual workers get to choose, they abandon the union and their big government agenda in droves.

SOURCE

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ELSEWHERE

Alan Turing has always been something of a God to us computer folk because of his brilliance. So it has always been saddening to hear that he was hounded to death because of his homosexuality. There is a good argument here, however, that his death was simply accidental.

Southern Baptists decree: Gay rights not civil rights: "A day after electing their first African-American president in a historic move that strives to erase its legacy of racism, Southern Baptists passed a resolution opposing the idea that same-sex marriage is a civil rights issue. ... The nation’s largest Protestant denomination is attempting to broaden its appeal beyond its traditional white Southern base. At the same time, leaders said they feel it is important to take a public stand on their opposition to same-sex marriage."

There is a new lot of postings by Chris Brand just up -- on his usual vastly "incorrect" themes of race, genes, IQ etc.

My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Should We Hire Even More Teachers, Cops, and Firemen?

Not if we want the economy to recover any time soon. Encouraging business is the only way to increase real, lasting jobs

Do we in fact have our staffing levels for teachers, cops, and firemen right? Could we get by with fewer of these sorts of employees or do we need yet more, to make up for the supposedly draconian cuts that have descended upon schoolhouses, police departments, and firehouses like Herod's minions murdering innocents?

A lot of Obama's stimulus was spent on keeping public-sector payrolls going full-tilt and now that the stimulus has dried up (and clearly failed to "prime the pump" of general economic activity in any serious way), some of those folks are being let go. At least at the state and local level. As Keith Hennessey notes, outside of the Postal Service (which has long been shrinking), Obama has added 1420,000 workers to the federal payroll.

Before we look at teachers, cops, and firemen in turn, consider the overall plight of working America. Here's a chart of private- and public-sector job losses since January 2009. Public-sector employment is indeed down from where it was back then and private-sector jobs are back to about where they were when Obama took office (though still lower than they were in pre-recession times; about 4 million jobs total have vanished since the start of the Great Recession in 2007, and 80 percent of those losses were in the private sector).

Despite recent cuts to the public-sector workforce, fears of teacher-less classrooms, cop-free streets, and empty firehouses are misplaced.

When it comes to teachers, in 2008 (the last year for which the federal government lists actual data), there were 15.3 pupils per teacher in public K-12 schools. That's the lowest recorded number. In 1998, the number was 16.4 and in 1978, it was 19.3. Over this same time period, the amount of money per student has increased tremendously and scores on the National Assessment of Educational Progress (NAEP) have stayed flat at best. Since 1970, the number of public-school students has increased by about 9 percent while the number of public-school employees (teachers plus everyone else) has increased by 96 percent. Something ain't right there. It seems quite plausible that states and local school districts can lose a good chunk of teachers without significantly impairing the quality (that may not be the right word) of K-12 public education.

What about cops? According to Bureau of Justice Statistics, in 1992 there were 332 "full-tme state and local law enforcement employees per 100,000 residents." By 2008, that number had jumped to 373 full-timers. To be fair, crime has been declining over that time frame, so maybe the extra cops have really made a difference. Yet most experts point to factors other than the sheer number of law enforcement employees to explain the decline. The population is aging, which correlates with less crime; the sorts of gadgets and gizmos that get ripped off are more affordable for everyone, leading to less crime; surveillance cameras (both private and public) seem to have chilled thefts and assaults; and more. So there's every reason to believe that we can scrimp on high-cost uniformed cops and not be met with a crime wave that will turn even Smallville, USA into Gotham City any time soon.

Then there's firefighters. Data from the National Fire Protection Association (NFPA) tracks the number of firefighters between 1986 and 2010. In 1986, there was a total of 4.35 volunteer and career firefighters per 1,000 Americans. That number dropped to 3.57 firefighters per 1,000 people in 2010. The number of career firefighters—these are the ones who are compensated by taxpayers—has remained relatively stable though, going from 1.73 per 1,000 people to 1.53 per 1,000 people. That's not much of a drop and it's worth pointing out that firefighting, unlike teaching or police work, doesn't scale the same way relative to population. Having more (or fewer people) doesn't clearly mean more (or fewer) fires. In any case, NFPA data show a decrease in "incidents attended by public fire departments." In 2003 (the oldest year I could find data for), for instance, public fire departments covered 1.6 million fires. In 2010, the numbers was 1.33 million. More people, fewer firemen, and fewer fires. That's great news.

So it seems that the American public can get by with fewer public-sector employees without spiraling down into chaos. Unless you believe that the primary function of the public sector is to be a jobs program, there is no reason to sweat recent cuts to public-sector jobs, whose numbers, as Mickey Kaus has pointed out, have "been bloating since around 1980." Obesity isn't just about food, it turns out.

As it happens, Nobel-winning economist and New York Times columnist Paul Krugman and many others (let's call them stimulatarians), seem to believe that a key function of government is precisely to employ lots of people who otherwise would look for work elsewhere. He argues that growth in public-sector employment is all that stands between recession and recovery:

"Conservatives would have you believe that our disappointing economic performance has somehow been caused by excessive government spending, which crowds out private job creation. But the reality is that private-sector job growth has more or less matched the recoveries from the last two recessions; the big difference this time is an unprecedented fall in public employment, which is now about 1.4 million jobs less than it would be if it had grown as fast as it did under President George W. Bush."

I happen to think that the really big difference between this recession and the last two are the absolutely humongous interventions into the economy by the federal government via the stimulus, TARP, and ObamaCare (whose uncertain legal status and cost estimates can't in any way have helped businessess want to hire more people). I may be forgetting the great Pets.com bailout of 2001, but I don't think so. What's more, argues Krugman in a recent column, the lackluster experience of Ireland's "austerity" program, in which 28,000 public workers were canned over a few years, shows that reducing public payrolls is no way to win the future:

"Recovery never came; Irish unemployment is more than 14 percent. Ireland's experience shows that austerity in the face of a depressed economy is a terrible mistake to be avoided if possible."

Let the record show that George W. Bush, as this site (and me personally) never tires of pointing out, was a big-government disaster, who broke the bank like an impulsive five-year-old smacking a piggy bank with a hammer. If Bush's free-spending ways were so stimulative, the question before us would be how can we restrain such fantastic economic growth and not how can we get anything going.

Like Obama, George Bush inherited a crap economy and a whopping 900,000 public-sector jobs were added in his first term, which was also known as a "jobless recovery." The feds went on a hiring and spending spree, of course, and so did state and local governments once the economy bounced back. Unlike Obama, Bush also inherited a surplus from which to at least pay for some of that spending. To insist that public-sector spending is the way to reduce unemployment really does mean forgetting that these jobs don't pay for themselves. The only way the government at any level makes payroll is by taxing now or borrowing now and taxing later to pay off debt.

A decade-plus after Bush first took office, debt at all levels has metastisized, which is another way of saying that the bill for runaway government spending—we're talking increases of 60 percent or more in inflation-adjusted dollars at the federal level and well over 50 percent at the state level between 2003 and 2007 alone—is coming due. So for Krugman and other stimulatarians to simply keep harping on public-sector employment levels really begs the questions of who's going to pay for those saved-or-created hires and what effect explicit or implicit tax increases have on the larger economy.

Which brings us to the related question of Irish austerity, which to Krugman's mind proves that firing public workers will hurt any economy. Contrary to Krugman, Irish public spending has been relatively flat in recent years, which is really nobody's idea of austerity, if by that term you mean taking a hatchet to a budget to reduce the debt to GDP or spending ratio. By the same token, Ireland has been happy to raise all sorts of taxes in recent years to attempt to close budget and debt gaps. As Reason columnist and Mercatus Center economist Veronique de Rugy has pointed out, an incomplete list of "austerity" tax increases in the Old Sod includes:

* Standard VAT rate increased by two percentage points to 23 percent. (It was cut in December 2009 down to 20 percent from 21.5 percent)

* €100 household charge introduced to fund vital local services.

* Carbon tax increased from €15 to €20 per tonne effective from midnight, Budget Night, on petrol and diesel, and from May 1, 2012, on other fossil fuels, excluding solid fuels. This change equates to 1½c increase in cost of a litre of petrol & diesel.

* Excise tax on cigarettes up by 25 cents.

* Motor-tax rates increased.

* Capital acquisition tax, capital-gains tax and D.I.R.T. raised to 30 percent.

* Property-relief surcharge of 5 percent to apply to large investors.

These levies, she notes, have been laid on top of a whole bunch more as well. Far from Krugman's suggestion that Irish austerity has taken the form of massive cuts in goverment spending and public-sector employment, most of it involves tax increases that are properly understood as "private-sector austerity."

De Rugy has elsewhere pointed out that there are crystal-clear examples of how to shrink public-sector spending (and by extension, public-sector employment) which not only reduce debt-to-GDP ratios but correlate with economic growth. The key is to eschew "balanced approaches" that rely on some spending cuts and some tax hikes and to go whole hog on the spending cuts.

Successful austerity plans—those that see debt-to-GDP decline by at least 4.5 percentage points after three or more years—contain an average of 80 percent of spending cuts and 20 percent tax increases. Rather than grapple with actual examples from the recent past, the stimulatarians either fudge weak arguments about how World War II ended the Depression ("the Great Depression ended largely thanks to a guy named Adolf Hitler") or how stimulative a Watchmen-style fake alien invasion would be.

And to answer Krugman's query about runaway spending causing rotten economic performance: Yes, there appears to be a pretty strong connection, especially when spending keeps the debt ratio from shrinking. According to Carmen Reinhart, Vincent Reinhart, and Ken Rogoff, "debt overhang"—defined as a country posting a debt-to-GDP ratio of 90 percent or more for five consecutive years—causes significant reductions in long-term economic growth.

Economists such as University of California at San Diego's Valerie Ramey and Harvard's Robert Barro—not to mention former Obama adviser Christina Romer—have all made convincing empirical cases that fiscal stimulus doesn't work. Certainly we know this much: The Obama stimulus failed to deliver on its unemployment rate promises (and that would be true even if public-sector employment had not been cut).

The stimulatarians would keep increasing government expenditures and padding public payrolls as the one true route to prosperity. Tax increases are OK in this scenario (or at least not worthy of much serious discussion) because they might help to keep more folks on the public payroll which is, in Krugman's analysis, "the big difference this time."

But we plainly don't need more teachers, more cops, or more firemen to educate our kids, protect our streets, or put out our fires.

And hiring more public-sector employees is no way to reduce government spending, which is the best way to reduce the debt-to-GDP ratio. Which is the best way right now to get the economy moving. If only President Obama or Gov. Romney understood any part of that.

SOURCE (See the original for graphics)

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IPAB, Obamacare's Super-Legislature

The individual mandate isn't Obamacare's only unconstitutional provision, or even its most unconstitutional provision. That distinction belongs to the Independent Payment Advisory Board. A heretofore unreported feature of this super-legislature makes it even more authoritarian and dangerous than anyone knew.

IPAB consists of up to 15 unelected government "experts." Its stated purpose is to restrain Medicare spending. If projected spending exceeds certain targets, Obamacare requires IPAB to issue "legislative proposals" to reduce future spending. Those proposals could include drastic cuts that jeopardize seniors' access to care, leading some critics to label IPAB a "death panel."

But the really dangerous part is that these are not mere "proposals." Obamacare requires the secretary of Health and Human Services to implement them — which means they become law automatically — unless Congress takes certain steps to head them off. Congress may replace the Board's proposal with its own cuts, at least initially. But Obamacare requires a three-fifths vote in the Senate to pass any replacement that spends more than the Board's proposal. In other words, to override IPAB's proposal completely, opponents must assemble a simple majority in the House and a three-fifths majority in the Senate and the president's signature.

That makes IPAB more than an advisory board. It's a super-legislature whose members are more powerful than members of Congress. If eight members of Congress propose a bill, all that's necessary to block it is a majority of either chamber, or one-third of either chamber plus the president.

Worse, Obamacare forbids Congress to repeal IPAB outside of a brief window in the year 2017 — and even then requires a three-fifths supermajority in both chambers plus a presidential signature. Under Obamacare, after 2017 Congress could repeal Medicare, but not the board it created to run Medicare. Congress and the states could repeal the Bill of Rights — but not IPAB.

What kind of laws will these super-legislators impose? Obamacare supposedly prohibits these super-legislators from raising taxes or rationing care. Yet those restrictions are unenforceable and meaningless. For instance, the statute lets IPAB define "rationing" and protects that definition — along with the secretary's implementation of IPAB's edicts — from administrative or judicial review. The prohibition on raising taxes is likewise toothless. IPAB can raise taxes as surely as it can cut Medicare spending.

In effect, Obamacare gives IPAB the power to raise taxes, spend money, place conditions on federal grants to states, and exercise other powers the Constitution reserves solely to Congress. If the Supreme Court upholds Obamacare's mandated Medicaid expansion, states may soon see IPAB imposing similar mandates on states. And if President Obama fails to appoint any IPAB members, all these powers fall to Secretary of Health and Human Services Kathleen Sebelius.

As if all this weren't bad enough, we discovered a heretofore unreported feature of Obamacare. According to the statute, if Congress fails to repeal IPAB during that short window in 2017, then in 2020 Congress loses any and all power to restrain these super-legislators.

The Congressional Research Service and others have reported that Congress will always retain some (limited) power to block IPAB's edicts, but they misread a crucial part of the statute. They thought they saw the word "or" where the statute actually says "and." The difference is dramatic.

As we explain in our new report, under the statute as written, if Congress fails to repeal IPAB in 2017, the secretary must implement IPAB's edicts even if Congress votes to block them. Nancy Pelosi was right: We needed to pass Obamacare to find out what was in it. We're still finding out.

Obamacare is so unconstitutional, it's absurd. It delegates legislative powers that Congress cannot delegate. It creates a permanent super-legislature to supplement — and when conflicts arise, to supplant — Congress. It tries to amend the Constitution via statute rather than the amendment procedure of Article V.

Obamacare proves economist Friedrich Hayek's axiom that government direction of the economy threatens both democracy and freedom. After decades of failing to deliver high-quality, low-cost health care through Medicare, Congress struck upon the "solution" of creating a permanent super-legislature — or worse, an economic dictator — with the power to impose taxes and other laws that the people would reject.

Fortunately, one Congress cannot bind future Congresses by statute. If the Supreme Court fails to strike down Obamacare, Congress should exercise its power to repeal IPAB — and the rest of Obamacare with it.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Norton/Symantec are bunglers: Do not use them

One of my readers received the following rubbish warning:

Fraudulent Web Page Blocked

You attempted to access:

http://australian-politics.blogspot.com.au/2012/06/another-race-that-stopped-nation.html

This web page is a known fraudulent web page. It is recommended that you do NOT visit this page.

For your protection, this web page has been blocked. Visit Symantec to learn more about phishing and internet security.

Interestingly, the page had been up for only about an hour when Norton had their strange spasm above. I received no warning from Norton and I can find no way of contacting them to ask why.

True Christians desert heretical church

As a baptized Presbyterian and a former member of an Australian Presbyterian church, the news below gives me some sadness. How can the clear docrine of the Bible and our forefathers have been so lightly deserted? But a church whose gospel is Leftism and approval of homosexuality belongs in the Devil's camp and those who read their Bible can see that. Start from Romans chapter 1 if you doubt it

Presbyterian Church (U.S.A.) membership dipped below the 2 million mark in 2011, according to statistics released by the PC(USA) Office of the General Assembly on Thursday.

According to the numbers, during 2011 the denomination experienced a decline of 63,804 members and the loss of 96 congregations due to a mixture of church dissolutions and dismissals.

The Rev. Gradye Parsons, stated clerk of the General Assembly, commented on the loss. "The loss of membership through certificate-of-transfer is the lowest number it has been in at least four years, which is encouraging," said Parsons in a statement. "At least two challenges are before us … The first and primary need is to continue to increase our efforts to live out the Great Commission and share the good news of Jesus Christ. The second is to connect with the growing number of the 'Spiritual But Not Religious.'" [No need for that silly old Bible any more]

The statistics showed a years-old trend continuing. According to the PC(USA) General Assembly Mission Council, in 2000 the denomination had over 2.5 million members. Over the past decade the entire denomination has lost over 20 percent of its membership.

In addition to fewer members, in 2011 the PC(USA) also lost 96 congregations. Of them, 21 of the 96 congregations voted for dismissal from the denomination over theological differences, including the approval of openly gay clergy.

Sorge of the Pittsburgh Presbytery told CP that he believed the trend of departing congregations would likely continue for the foreseeable future.

The Evangelical Covenant Order of Presbyterians, a Reformed body recently created as part of the wave of departures from the PC(USA), declined to comment to The Christian Post for this story.

More HERE

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Another textbook deception about Fascism

When I was in sixth grade, a 1967 copy of The Pageant of World History by Gerald Leinwand came into my possession. While I learned a great deal from it, the book contains shocking omissions. Here's what Leinwand says about the early years of Mussolini:

Mussolini, at one time, had been a socialist, and, as a newspaperman, had written articles favoring the overthrow of capitalism.

All true, but so misleading! Leinwand makes Mussolini sound like a low-level journalist who happened to be a rank-and-file member of the socialist party. I didn't learn the real story for decades, when I discovered the works of A. James Gregor, especially his Young Mussolini and the Intellectual Origins of Fascism. Fortunately for the sixth-graders of today, Wikipedia has the facts that Leinwand leaves out. Mussolini wasn't just another socialist; he was the Lenin of Italy - the leader of the hard-line revolutionary faction. And Mussolini wasn't just a "newspaperman"; he was the editor of Avanti!, the official newspaper of the Socialist Party. By 1910, he...

...was considered to be one of Italy's most prominent Socialists. In September 1911, Mussolini participated in a riot, led by Socialists, against the Italian war in Libya. He bitterly denounced Italy's "imperialist war" to capture the Libyan capital city of Tripoli, an action that earned him a five-month jail term. After his release he helped expel from the ranks of the Socialist party two "revisionists" who had supported the war, Ivanoe Bonomi, and Leonida Bissolati. As a result, he was rewarded the editorship of the Socialist Party newspaper Avanti! Under his leadership, its circulation soon rose from 20,000 to 100,000.

Wikipedia's article on the Italian Socialist Party has more details on Mussolini's purge of "revisionists":

At the start of the 20th century, however, the PSI chose not to strongly oppose the governments led by five-time Prime Minister Giovanni Giolitti. This conciliation with the existing governments and its improving electoral fortunes helped to establish the PSI as a mainstream Italian political party by the 1910s.

Despite the party's improving electoral results, however, the PSI remained divided into two major branches, the Reformists and the Maximalists. The Reformists, led by Filippo Turati, were strong mostly in the unions and the parliamentary group. The Maximalists, led by Costantino Lazzari, were affiliated with the London Bureau of socialist groups, an international association of left-wing socialist parties.

In 1912 the Maximalists led by Benito Mussolini prevailed at the party convention and this led to the split of the Italian Reform Socialist Party.

For socialists, of course, Mussolini's apostasy proves nothing except his supreme evil. For everyone else, though, Mussolini's origin story puts his subsequent career in a whole new light. Outsiders can easily see what insiders deny: The apostate fruit rarely falls far from the orthodox tree.

Yes, Mussolini realized that socialism plus nationalism had more mass appeal than socialism alone. Yes, Mussolini realized that socialism would be stronger if it allied with the Church instead of destroying it. Yes, Mussolini realized that full-fledged mass expropriation of private property would devastate the economy. And yes, Mussolini realized that the word "socialism" alienated millions of Italians who would otherwise be receptive to his message. But this doesn't make Mussolini a radical socialist who betrayed everything he believed in. It makes him a radical socialist who dropped some peripheral socialist dogmas that stood between him and absolute power. If he'd kept the socialist label and avoided alliance with Hitler, Mussolini might now be a left-wing icon as big as Che Guevara.

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Estonia and Austerity: Another Exploding Cigar for Paul Krugman

Daniel J. Mitchell

I have great fondness for Estonia, in part because it was the first post-communist nation to adopt the flat tax, but also because of the country’s remarkable scenery.

Most recently, though, I’ve been bragging about Estonia (along with Latvia and Lithuania, the other two Baltic nations) for implementing genuine spending cuts. I’ve argued that Estonia is showing how a government can reignite growth by reducing the burden of government.

Not surprisingly, some people disagree with my analysis. Paul Krugman of the New York Times criticized Estonia yesterday, writing that the Baltic nation suffered a “Depression-level slump” in 2008 and has only managed an “incomplete recovery” over the past few years.

He blames this supposedly weak performance on “austerity.”

I have a positive and negative reaction to Krugman’s post. My positive reaction is that he’s talking about a nation that actually has cut spending, so there’s real public-sector austerity (see Veronique de Rugy’s L.A. Times column to understand the critical difference between public-sector and private-sector austerity).

This is a sign of progress. In the past, he launched a silly attack on the U.K. for a “government pullback” that never happened, so what he wrote about Estonia at least is based on real events.

My negative reaction is that Krugman is very guilty of cherry-picking data. If you look at the chart that accompanies his post, Estonia’s economic performance isn’t very impressive, but that’s because he’s only showing us the data from 2007-present.

The numbers are accurate, but they’re designed to mislead rather than inform (sort of as if I did a chart showing 2009-present).

But before exposing that bit of trickery, there’s another mistake worth noting. Krugman presumably wants us to think that the downturn coincided with spending cuts. But his own chart shows that the economy hit the skids in 2008 – a year in which government spending in Estonia soared by nearly 18 percent according to EU fiscal data!

It wasn’t until 2009 that Estonian lawmakers began to reduce the burden of spending. So I guess Professor Krugman wants us to believe that the economy tanked in 2008 because of expectations of 2009 austerity. Or something like that.

Returning now to my complaint about cherry picking data, Krugman makes Estonia seem stagnant by looking only at data starting in 2007. But as you can see from this second chart, Estonia’s long-run economic performance is quite exemplary. It has doubled its economic output in just 15 years according to the International Monetary Fund. Over that entire period – including the recent downturn, it has enjoyed one of the fastest growth rates in Europe.



This doesn’t mean Estonia is perfect. It did experience a credit/real estate bubble, and there was a deep recession when the bubble burst. And the politicians let government spending explode during the bubble years, almost doubling the budget between 2004 and 2008.

But Estonia reacted to the overspending and the downturn in a very responsible fashion. Instead of using the weak economy as an excuse to further expand the burden of government spending in hopes that Keynesian economics would magically work (after failing for Hoover and Roosevelt in the 1930s, Japan in the 1990s, Bush in 2008, and Obama in 2009), the Estonians realized that they needed to cut spending.

And now that spending has been curtailed, it’s worth noting that growth has resumed.

What makes Krugman’s rant especially amusing is that he wrote it just as the rest of the world is beginning to notice that Estonia is a role model. Here’s some of what CNBC just posted.

Sixteen months after it joined the struggling currency bloc, Estonia is booming. The economy grew 7.6 percent last year, five times the euro-zone average. Estonia is the only euro-zone country with a budget surplus. National debt is just 6 percent of GDP, compared to 81 percent in virtuous Germany, or 165 percent in Greece. Shoppers throng Nordic design shops and cool new restaurants in Tallinn, the medieval capital, and cutting-edge tech firms complain they can’t find people to fill their job vacancies. It all seems a long way from the gloom elsewhere in Europe. Estonia’s achievement is all the more remarkable when you consider that it was one of the countries hardest hit by the global financial crisis. …How did they bounce back? “I can answer in one word: austerity. Austerity, austerity, austerity,” says Peeter Koppel, investment strategist at the SEB Bank. …that’s not exactly the message that Europeans further south want to hear. …Estonia has also paid close attention to the fundamentals of establishing a favorable business environment: reducing and simplifying taxes, and making it easy and cheap to build companies.

Good policy makes a difference. But it also helps to have rational citizens (unlike France, where people vote for economic illiterates and protest against reality).

While spending cuts have triggered strikes, social unrest and the toppling of governments in countries from Ireland to Greece, Estonians have endured some of the harshest austerity measures with barely a murmur. They even re-elected the politicians that imposed them. “It was very difficult, but we managed it,” explains Economy Minister Juhan Parts. “Everybody had to give a little bit. Salaries paid out of the budget were all cut, but we cut ministers’ salaries by 20 percent and the average civil servants’ by 10 percent,” Parts told GlobalPost. …As well as slashing public sector wages, the government responded to the 2008 crisis by raising the pension age, making it harder to claim health benefits and reducing job protection — all measures that have been met with anger when proposed in Western Europe.

It’s worth noting, by the way, that government is still far too big in Estonia. The public sector consumes about 39 percent of economic output, almost double the burden of government spending in Hong Kong and Singapore.

But, unlike certain American politicians, at least the Estonians understand the problem and are taking steps to move in the right direction. I hope they continue.

P.S. The President of Estonia, a Social Democrat named Toomas Hendrik Ilves, used his twitter account to kick the you-know-what out of Krugman yesterday. For amusement value, check out this HuffingtonPost article.

P.P.S. A few other nations, such as Canada and New Zealand, also imposed genuine spending restraint in recent decades and they also got good results.

SOURCE

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The American tax system explained in beer -- Obama take note

When pondering the question of your income tax please refer to this explanation using the language of Beer !!! (Attributed to David R. Kamerschen, Ph.D., Professor of Economics)

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100.

If they paid their bill the way we pay our taxes, it would go something like this:

The first four men (the poorest) would pay nothing.
The fifth would pay $1
The sixth would pay $3
The seventh would pay $7
The eighth would pay $12
The ninth would pay $18
The tenth man (the richest) would pay $59

So, that's what they decided to do.

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball.

"Since you are all such good customers," he said, "I'm going to reduce the cost of your daily beer by $20". Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes.

So the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his fair share?

They realised that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man's bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 (33% saving).

The seventh now paid $5 instead of $7 (28% saving).

The eighth now paid $9 instead of $12 (25% saving).

The ninth now paid $14 instead of $18 (22% saving).

The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

"I only got a dollar out of the $20 saving," declared the sixth man. He pointed to the tenth man, "but he got $10!"

"Yeah, that's right," exclaimed the fifth man. "I only saved a dollar too. It's unfair that he got ten times more benefit than me!"

"That's true!" shouted the seventh man. "Why should he get $10 back, when I got only $2? The wealthy get all the breaks!"

"Wait a minute," yelled the first four men in unison, "we didn't get anything at all. This new tax system exploits the poor!"

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn't show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works.

The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore.

In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

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The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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Racial Double Standards

Walter E. Williams

Back in 2009, U.S. Attorney General Eric Holder said we were "a nation of cowards" on matters of race. Permit me to be brave and run a few assertions by you just to see whether we're on the same page. There should be two standards for civilized conduct: one for whites, which is higher, and another for blacks, which is lower. In other words, in the name of justice and fair play, blacks should not be held accountable to the same standards that whites are and should not be criticized for conduct that we'd deem disgusting and racist if said or done by whites.

You say, "Williams, what in the world are you talking about?" Mitt Romney hasn't revealed all of his fall campaign strategy yet, but what if he launched a "White Americans for Romney" movement in an effort to get out the white vote? If the Romney campaign did that, there'd be a media-led outcry across the land, with charges ranging from racial insensitivity to outright racism. When President Barack Obama announced his 2012 launch of "African Americans for Obama", the silence was deafening. Should the same standards be applied to Obama as would be applied to Romney? The answer turns out to be no, because Obama is not held to the same standards as Romney.

Liberals won't actually come out and say that criticism of Obama is in and of itself racist, but they come pretty close. Former President Jimmy Carter said that criticism of Obama shows that there is an "inherent feeling" in America that a black man should not be president. Chris Matthews, host of MSNBC's "Hardball," said that critics of Obama are crackers. Morgan Freeman said that the campaign to see that Obama serves one term is a "racist thing." Former Obama czar Van Jones said that Romney's campaign sign "Obama Isn't Working" implies Obama is a "lazy, incompetent affirmative action baby."

Racial double standards also apply to how crime is reported. I'm betting that if mobs of white youths were going about severely beating and robbing blacks at random and preying on black businesses, it would be major news. News anchors might open, "Tonight we report on the most recent wave of racist whites organizing unprovoked attacks on innocent black people and their businesses." If white thugs were actually doing that, politicians would be demanding answers. Such random attacks do happen, but it's blacks preying on whites.

On St. Patrick's Day in Baltimore, a 19-year-old white man was viciously attacked by a mob of black thugs. He broke loose, but a second mob of black thugs attacked him, taking all of his belongings. Baltimore County Delegate Pat McDonough demanded the governor send in the Maryland State Police to control "roving mobs of black youths" at Baltimore's Inner Harbor. Maryland Gov. Martin O'Malley and other activists demanded that McDonough apologize for talking about "black youth mobs."

Similar episodes of unprovoked violence by black thugs against white people chosen at random on beaches, in shopping malls and at other public places have occurred in Philadelphia, New York, Denver, Chicago, Cleveland, Washington, Los Angeles and other cities. Most of the time, the race of the attackers, euphemistically called flash mobs, is not reported, even though media leftists and their allies are experts in reporting racial disparities in prison sentencing and the alleged injustice of the criminal justice system.

Racial double standards are not restricted to the political arena and crime reporting; we see it on college campuses and in the workplace. Black people ought to be offended by the idea that we are held accountable to lower standards of conduct and achievement. White people ought to be ashamed for permitting and fostering racial double standards that have effects that are in some ways worse than the cruel racism of yesteryear.

SOURCE

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Self-sufficiency not allowed in the new America

A woman from Tulsa, Oklahoma is suing the city’s code enforcement teams after they illegally cut down her entire survival garden. Denise Morrison, who started the garden after becoming unemployed, had over 100 medicinal and edible plants in her front and back yard.

She told local Tulsa reporters that she started her garden, after becoming unemployed, as a way to feed herself and treat a variety of medical issues. Instead of relying on government handouts, this woman took matters into her own hands and decided to become self sufficient. She filled her yard with things like, fruit trees, berries, nut trees, and a wide variety of edible and medicinal herbs. She used these herbs to treat her diabetes, high-blood pressure and arthritis.

Is the Self-Reliant Lifestyle Now a Crime in America?
All her hard work ended when the local code enforcement team showed up to her house and forcibly removed her entire survival garden. Morrison says that she tried to explain how everything in her yard followed the local code enforcement rules. You see, she had problems with these people in the past and this time she was determined to do things by the book.

She obtained the local ordinances and followed every rule to the tee. She made sure that everything in her garden had a purpose, and that her garden looked its best at all times. Local ordinances stated that no plant could be over 12-inches tall unless they were being used for human consumption.

Morrison made sure every plant in her garden could be eaten, but that didn’t matter to the city. They could care less about what the law actually said, they were determined to take out her garden. “Every word out of their mouth was, ‘we don’t care,’” Morrison said.

Over 100 plant varieties were removed by the code enforcement team leaving her with no way to feed or medicate herself. They took almost everything, including a number of her fruit and nut trees. She told local reporters in Tulsa, “I came back three days later, sat in my driveway, cried and left.”

While this case is extremely sad, it’s also becoming more and more common throughout the country. From “nuisance abatement teams” that have been forcing Off-Griders in California to hook back into the grid, to the heartbreaking story of Andrew Wordes who took his life after code enforcement teams seized his home, this country is making it harder and harder for self-reliant people to live on their own land.

While some dismiss these cases as localized issues, I believe they’re part of a larger movement to control anyone who dares to live a self-reliant lifestyle. I think evidence of this can be seen in the federal governments attempts to regulate small farms out of existence, their use of the EPA to seize private land, the formation of the Department of Homeland Security’s Green Police Force, their attempts to seize control of the Great Lakes, oceans, and waterways, and their use of organizations like The National League of Cities to take control of local governments.

SOURCE

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The Washington 1 percent

The Associated Press recently reported that half of all new college graduates are either unemployed or underemployed. These fresh-faced bachelor-degree holders are finding themselves opting for waiting tables and serving coffee just to pay off a trillion dollars in student loans. They are coming to grips with a lie perpetuated by university professors, faculty unions, and politicians that deluded them into thinking college by itself was the golden ticket to success.

Meanwhile, the rest of America is still muddling through years of high unemployment. The jobs connected to Alan Greenspan's housing bubble are gone and will likely never return. Federal Reserve chairman Ben Bernanke met the financial crisis with an unprecedented amount of monetary-base expansion, which has failed to significantly affect the unemployment rate. President Obama and his allies in Congress threw $800 billion at the economy to no avail and have been running federal deficits to the tune of over $1 trillion for three years now. This orgy of money printing and spending has done little for the residents of Main Street but has done wonders for Wall Street and other politically connected interests.

Last fall's Occupy campaign was representative of a growing distrust of the American economic system. Although many occupiers were misled into believing capitalism is the culprit behind the sluggish economy, the protest's focus on income inequality was not wholly inaccurate. Of course the inequality in income that is a byproduct of an unhampered market economy is not something to demonize. As Ludwig von Mises wrote in Economic Freedom and Interventionism,

Inequality of wealth and incomes is an essential feature of the market economy. It is the implement that makes the consumers supreme in giving them the power to force all those engaged in production to comply with their orders. It forces all those engaged in production to the utmost exertion in the service of the consumers. It makes competition work. He who best serves the consumers profits most and accumulates riches.

Today, no Western, industrialized country operates under genuine capitalism. What passes for the free market in the context of mainstream political debate is actually a fascist-like partnership between big government and big business. The dynamic, cost-cutting competition that defines the uninhibited market has been stifled by Washington's endless decrees of regulation.

As Leviathan's grasp over all economic life continues to grow, it only makes sense that greater amounts of wealth funnel into the area that surrounds the various bureaucracies and decision-making bodies that make up the state. This past October Bloomberg News reported that Washington, DC, now tops Silicon Valley as the richest metropolitan area in the country. In a recent Time magazine article entitled "Bubble on the Potomac," author Andrew Ferguson documents the lifestyles of those within or well-connected to the federal-government apparatus:

Even as the nation struggles, the capital has prospered, making it a magnet for young hipsters but leaving its residents with only a tentative understanding of how the rest of the country lives.

Every week brings fresh evidence of continuing prosperity: a new restaurant, a new nightclub, another restored 19th century townhouse in a previously dodgy neighborhood selling for $1 million or more. Start-ups are hiring through Craigslist, and just opened lobbying firms have no trouble collaring clients.

Other big cities, of course, have made it through the recession in one piece. But few eased through the crash as lightly as D.C., much less prospered so widely on the rebound. The local unemployment rate, at 5.5%, stands well below the national figure of 8.2%. The region's foreclosure rates have always been significantly lower than those elsewhere, and now housing prices in D.C. and across the river in the Virginia suburbs of Arlington and Alexandria are close to their precrash peaks.

While Washington's palette of policy prescriptions becomes more diversified, more and more feeders are flooding to the public trough to get a share of the pie. Trillions of tax dollars being spent every year means a better chance to obtain that much-needed earmark or appropriation. The political class's inclination to create a perfect society has resulted in the state having an influence in virtually all aspects of private life. The car you drive, the food you eat, and the pillow you lay your head down on to sleep at night all have to comply within the legislative whims of the federal government. Lobbying has thus become a lucrative profession for those savvy enough, and well financed enough, to pay for that subsidy or competitor-crushing regulation. Just as F.A. Hayek recognized, "the worst rise to the top of government," and centers of power attract all types of opportunists.

Though lobbying for privilege has become a staple industry within the DC area, it isn't the sector experiencing the biggest growth in employment. Ferguson explains:

Why the boom? The size of the nonmilitary, nonpostal federal workforce has stayed relatively stable since the 1960s. What has changed is not the government payroll but the number of government contractors. It's estimated that, thanks to massive outsourcing over the past 20 years by the Clinton and Bush administrations, there are two government contractors for every worker directly employed by the government. Federal contracting is the region's great growth industry. A government contractor can even hire contractors for help in getting more government contracts. You could call those guys government-contract contractors.

Which means government hasn't shrunk; it's just changed clothes (and pretty nice clothes they are).

In order to project the image of a scant increase in the number of federal-government employees, a type of shadow economy of contractors has developed to deceive the public's eye. These contractors are employees of the state whether on the official payroll or not. Their income is derived from stolen funds just as much as the budget analyst at any of the alphabet-soup bureaucracy. The so-called private companies they work for do the bidding of the state at what is often an exorbitant price compared to what may prevail under free-market conditions. Government contractors are merely deceptive when describing themselves as private, for-profit companies. They are de facto agents of the state.

With all the money culminating in the Washington area, the city and its surrounding suburbs are indeed a world apart from the rest of the country. As the Time article shows, while regulatory uncertainty and the threat of increased taxation continue to stifle entrepreneurial capital investment, DC residents often help themselves to $150 meals, a taxpayer-subsidized metro system, and a variety of bars serving overpriced drinks. Armed with "fistfuls of disposable income," they live in paradise compared to recession-wrecked America.

This disconnect in lifestyle is understandable when we consider the anatomy of the state. As Murray Rothbard defines it,

Social power is man's power over nature, his cooperative transformation of nature's resources and insight into nature's laws, for the benefit of all participating individuals. Social power is the power over nature, the living standards achieved by men in mutual exchange. State power, as we have seen, is the coercive and parasitic seizure of this production — a draining of the fruits of society for the benefit of nonproductive (actually antiproductive) rulers. While social power is over nature, State power is power over man.

By being infused with the central state, much of Washington, DC, lives parasitically off of the collective labor of the rest of the country. Their standard of living comes at the expense of those whom they lord over. The ruling class establishes the rules of conduct for millions despite being made up of just a very small portion of the population. In return, it demands and receives compensation that is then funneled to the politically connected. This stream of violently confiscated funds is the lifeblood of the city.

To drive this point home, it must be emphasized that those on the payroll of the state don't actually pay taxes. As Rothbard points out, the notion that they do is "a mere accounting fiction." Claiming a government employee pays taxes is the equivalent of claiming they pay their own salary.

In the end, the people of Washington have little desire to have their lavish way of life fall by the wayside. Their goal is to keep the nation's focus on the government's operations. This guarantees more power, prestige, and authority for a city overrun by men and women who take pride in their lawful ability to wage war abroad and at home. As long as the federal government remains an overarching factor in everyday life, it will attract a great deal of wealthy interests looking to the game the system in their favor.

The DC mindset is fixated on the idea that such a state of affairs can last forever. Much of the younger crowd that resides in the nation's capital still doesn't see the writing on the wall. Ferguson ends the article explaining why:

The optimism of über-Washingtonians so far survives the unspoken worry about a coming age of austerity, in which government spending cuts would end the high life that Washingtonians have come to expect. They are right to be optimistic. The two most plausible deficit-reduction proposals — one by President Obama, the other by the Republican-controlled House Budget Committee — each calls for the government in 2021 to spend a trillion dollars more than it spends today.

Those living off the state are convinced the good times won't come to an end. Trillion-dollar deficits beg to differ however. The day will come when either investors demand higher interest rates for government bonds or prices pick up exponentially due to the extraordinary amount of inflation engineered by the Fed. Either way, Washington will then have no choice but to cut back or risk the complete destruction of the dollar. It will be a period of reckoning like no other. As Tom Woods writes in Rollback: Repealing Big Government Before the Coming Fiscal Collapse, it is estimated that the federal government's unfunded liabilities comes in at around $111 trillion. According to Professor Laurence J. Kotlikoff, the unfunded liability gap actually exceeds $211 trillion. Such staggering numbers mean a great default is coming. It's only a matter of who the losers will be.

For a country that is forced into subsidizing the profligate living habits of the state and its partners in crime, the only justifiable outcome would be for the latter to suffer.

For every government employee or contractor relieved of service in Washington, DC, and elsewhere, one or more taxpayers will be relieved of the burden of paying their salary. When such an event happens en masse, it will truly be a time of celebration for America as a whole.

SOURCE

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My Twitter.com identity: jonjayray. I have deleted my Facebook page as I rarely access it. For more blog postings from me, see TONGUE-TIED, EDUCATION WATCH INTERNATIONAL, GREENIE WATCH, POLITICAL CORRECTNESS WATCH, GUN WATCH, FOOD & HEALTH SKEPTIC, AUSTRALIAN POLITICS, IMMIGRATION WATCH INTERNATIONAL, EYE ON BRITAIN and Paralipomena

List of backup or "mirror" sites here or here -- for readers in China or for everyone when blogspot is "down" or failing to update. Email me here (Hotmail address). My Home Pages are here (Academic) or here (Pictorial) or here (Personal)

****************************

The Big Lie of the late 20th century was that Nazism was Rightist. It was in fact typical of the Leftism of its day. It was only to the Right of Stalin's Communism. The very word "Nazi" is a German abbreviation for "National Socialist" (Nationalsozialist) and the full name of Hitler's political party (translated) was "The National Socialist German Workers' Party" (In German: Nationalsozialistische Deutsche Arbeiterpartei)

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