Money and Finance

Texas jobs and wages – very impressive!

Thanks to a tweet from “Students for Perry” I found this blog post from the Political Math Blog showing that my wonderful home State, the Great State of Texas, has a very impressive record for job creation and for wages.

The post is full of information and graphs. Please read it!

I can’t resist these quotes:

“In a “normal” employment data set, we can easily look at it and say “Yep, that’s where the recession happened. Sucks to be us.” But not with Texas. With Texas, we say “Damn. Looks like they’ve recovered already.””

and

“Texas median hourly wage is $15.14…  almost exactly in the middle of the pack (28th out of 51 regions). Given that they’ve seen exceptional job growth (and these other states have not) this does not seem exceptionally low.”

and

“Since the recession started hourly wages in Texas have increased at a 6th fastest pace in the nation.”

and just one more:

“I mentioned on Twitter that the Texas jobs situation was nothing short of miraculous. This is why I said that and why I’m standing by that statement.”

WILLisms.com: Texas’ Interest Payments On Government Debt: Third Lowest In America.

See more of this post at WILLisms.com: Texas’ Interest Payments On Government Debt: Third Lowest In America..

Texas also has the second lowest state debt as a percentage of personal income.

While it is true that voters in Texas have approved far more bond debt, mostly for roads, in the past decade (voters, even conservative Texas voters, tend to vote “yes” to almost any shiny objects on the ballot), those bonds are at least paid for with fees and assessments, and they are targeted and temporary, for specific purposes like infrastructure.

Texas has seen its non-self-supporting debt (the kind that gets you in trouble because the money is spent on who-knows-what and there’s no mechanism for paying back the borrowing) fall significantly in recent years, to the tune of roughly 16%.

Forbes ranks Texas number four (meaning, one of the best) on its debt weight scorecard, and gives Texas four stars out of four for avoiding a state debt disaster. All this, and Texas remains a donor state, contributing more in taxes to Washington than it receives back in federal benefits.

Moreover, while America got downgraded under President Obama, Texas got a credit upgrade under Rick Perry.

via WILLisms.com: Texas’ Interest Payments On Government Debt: Third Lowest In America..

Government Motors Spends Your Money | RedState

Ben Howe at RedState questions General Motors’ spending, including $15 Million on advertising at one football game.

So the government appointed CEO has taken the company’s stock to historic lows; pushed out money losing, government subsidized cars that the American people don’t want, all at the behest of his bosses in Washington; and is sitting on enough cash to pay back the loan but is instead choosing to wait for the treasury to lose money when it sells our shares. So what’re they doing with all that money?

Well, they’re handing out bonuses that will be over $400 million and could exceed 50% of workers salaries. In fact, nearly all 28,000 engineers and managers will get 4-16 percent of their base pay.

They’re paying homage to the green gods by investing in solar panels and wind farms. Not exactly sure how that contributes to making cars, but what do I know? In fact they’re spending just under $1 million for weatherization projects in Maine which they claim will be the first of similar investments in all 50 states.

GM is investing over $40 million dollars to “offest its carbon footprint,” and invested enough money into the World Golf Championship in Doral, Fl to get them to add the word “Cadillac” to it.

The average cost of a superbowl ad is $3 million for 30 seconds. GM aired 5 of them.

They’re working on getting the green light for a reality tv show about their Chevy Volt. I’m guessing it’ll include a cast of 20 people that will coincidentally be the only people in America that actually own one.

In fact, they are spending on entertainment at a faster rate than any other category.

And I know what you’re thinking, “Hey, companies have to advertise man! It’s getting them name recognition!” To that I would ask you if you really believe that GM’s name is so unknown that they need to spend a minimum $15 million worth of advertising during one game, or if, perhaps, they might be well known enough to advertise somewhere other than the most expensive commercial spot on planet Earth.

via Government Motors Spends Your Money | RedState.

Office of the Governor Rick Perry – [Press Release] Gov. Perry: Fiscal Responsibility is Essential for Prosperity and Job Creation

Gov. Rick Perry touted Texas’ strong economy and job creation, and discussed the importance of fiscal responsibility at all levels of government. The governor delivered the keynote speech at the National Conference of State Legislatures Legislative Summit (NCSL).

“Jobs are the fundamental building blocks of any community, and over the last two years, 40 percent of the net new jobs created in the United States were created in Texas,” Gov. Perry said. “That’s why we continue to make the tough choices that all states and the federal government should be making. We passed a balanced budget while maintaining essential services, kept taxes low and preserved more than $6 billion in our Rainy Day Fund.”

Gov. Perry noted that government doesn’t create jobs, it creates the environment for jobs to grow. He credited Texas’ economic strength to our state’s low taxes, reasonable and predictable regulatory climate, fair legal system and skilled workforce.

“Employers fleeing the over-taxing, over-regulating and over-litigating atmosphere that has taken hold in so many other states come to Texas because we’ve cultivated a culture that rewards innovation without all the red tape,” Gov. Perry said.

via Office of the Governor Rick Perry – [Press Release] Gov. Perry: Fiscal Responsibility is Essential for Prosperity and Job Creation.

UPDATE 1-Republican tax hardliners on US debt super panel | Reuters

Pray for Texas’ Representative Jeb Hensarling. He will co-chair with Patty Murray.

In a move that could deadlock the 12-member panel over taxes, but perhaps set the stage for changes later, Senate Republican Leader Mitch McConnell named Tea Party ally Patrick Toomey to the panel with Jon Kyl and Rob Portman.

The panel is known as the Joint Select Committee on Deficit Reduction and was established to find $1.5 trillion in additional budget savings over 10 years, but markets have been looking for signs that it may be able to do more.

House of Representatives Speaker John Boehner, the top Republican in Congress, appointed Dave Camp, who chairs the tax-writing House Ways & Means Committee, along with conservative “young gun” Jeb Hensarling and Fred Upton.

via UPDATE 1-Republican tax hardliners on US debt super panel | Reuters.

Debt Ceiling Debate, Already?

The standoff that we saw in Washington, DC last week may be repeated sooner than we thought.

The deal was for an immediate $400 billion raise in the debt ceiling, with another increase of $500 Billion when the President asks and there aren’t enough votes in Congress to veto it.

As the Washington Times reported (and WingRight reposted), the Treasury Department spent 60% of that $400 Billion on Tuesday, August 2.

The debt subject to the statutory limit shot way past the old cap of $14.294 trillion to hit $14.532 trillion on Tuesday, according to the latest the Treasury Department figures, which are released on the next business day.

And the US Debt clock is still going up, although slightly more slowly. Tonight, the US Debt is at 14.591 Trillion.

Mona Charen: Gov. Perry right to question skyrocketing cost of college | The Daily News Journal | dnj.com

Governor Perry takes on the Academic elites:

“Between 1978 and 1997, home prices increased annually at about the same rate as general prices, but then appreciated at a faster pace over the next decade. In the ten-year period starting in 1997, home prices increased by 68 percent, or more than twice the 29 percent increase in overall prices, and that home price appreciation caused an unsustainable housing bubble that burst in 2007 and contributed to the financial crisis of 2008-2009.

During that same 1997-2007 decade that home prices increased by 68 percent and created a housing bubble, college tuition and fees rose even higher — by 83 percent. In fact, college tuition and fees have never increased by less than 73 percent in any ten-year period back to the 1980s. And in the decades ending in 2009 and 2010, college tuition increased by more than 90 percent. The still-inflating increases in the price of higher education are starting to make the housing bubble look pretty tame by comparison.”

In addition to suggesting that tuition be reduced, a panel appointed by Governor Perry suggested that professors were “wasting time and money churning out esoteric, unproductive research.” Shocking. The panel suggested dividing the research and teaching budgets to encourage excellence in both, while also introducing merit pay for exceptional classroom teachers.

Meanwhile, The Wall Street Journal reports that students are flocking to colleges and universities in flat, freezing North Dakota to take advantage of lower tuition rates. Enrollment at public colleges has jumped 38 percent in the last decade, led by a 56 percent increase in out of state students. Colleges around the nation, the Journal advises, must now compete for a new kind of student: “the out-of-state bargain hunter.”

via Charen: Gov. Perry right to question skyrocketing cost of college | The Daily News Journal | dnj.com.

(Hat Tip to tweet from @TotalProfMove

Rick Perry is against embryonic stem cell research, but he wants Texas to be center of stem cell advances | Texas on the Potomac | a Chron.com blog

The Governor has always opposed unethical destructive stem cell research, but Representative Hardcastle changed his mind on embryonic stem cells and cloning this year.

Hardcastle said the governor’s office didn’t ask him to carry it — as the only member of the Legislature with MS, he said, it’s been on his mind for “a long time” — but one of the governor’s staffers did advise him on it. Somewhat involved, Hardcastle said, was Jones, who has already removed some of Hardcastle’s stem cells to prepare them for re-injection.

A spokeswoman with the Health and Human Services Commission said the agency is in the very early stages of considering whether to create the stem cell bank. A few weeks ago, the agency received a letter from Houston Reps. Beverly Woolley, a Republican, and Senfronia Thompson, a Democrat, expressing their “serious concern” with the measure, for fear it might hinder the work of public and private scientists.

Meanwhile, Texas Medical Board spokeswoman Leigh Hopper said the regulatory agency held a stem cell stakeholder meeting last week — “at the governor’s behest, via Dr. Jones” — to start dialogue about adult stem cell treatments in Texas. The question? If Americans are — like Jones — increasingly flying all over the world to get promising stem cell treatments, shouldn’t Texas be a scientific and economic center for it?

via Rick Perry is against embryonic stem cell research, but he wants Texas to be center of stem cell advances | Texas on the Potomac | a Chron.com blog.

Texanomics: Texas Wage Growth Faster than Other Big States and US

Pretty graph!

Texanomics: Texas Wage Growth Faster than Other Big States and US.

Debt ceiling: never lowered

That should be enough to make the people who holler, “The debt ceiling has been raised dozens of times over the decades,” reconsider.  But probably not.

The problem is not revenue. Revenue is high, but spending is higher!

U.S. eats up most of debt limit in one day

Don’t look behind the curtain!

The debt subject to the statutory limit shot way past the old cap of $14.294 trillion to hit $14.532 trillion on Tuesday, according to the latest the Treasury Department figures, which are released on the next business day.

That increase puts the government already remarkably close to the new debt limit of $14.694, which means one day’s new borrowing ate up 60 percent of the $400 billion in space Congress granted the president this week.

via U.S. eats up most of debt limit in one day – Washington Times.

» Higher Education Reform Meets Professor X – Big Government

Wow, what this man exposes! No wonder our Universities and Colleges are so expensive. And no wonder Governor Perry’s recent recommendation that State institutions spend more on teaching and less on research caused such an uproar.

Professor X pulls down a six-figure salary, plus 25 percent in fringe benefits. He teaches two 15-week courses per semester – for a total of 30 weeks per year – and has 22 weeks off.

He says he “works 60 hours a week.” Maybe so, but many of these hours are extraneous to his teaching and focus on outside matters that he wishes to pursue.

With tenure, he has no accountability to students, administrators, or the public. He can confess, with impunity, that his teaching is beyond reproach.

With tenure, he cannot be forced into retirement at any age, but even in retirement, his benefits will be bountiful.

Is there any wonder why college teaching is one of the most coveted positions in the world?

Now here is the sad part: the above prototype is real. There are countless professors like Professor X. I have discovered a great many of them in my five decades of working in higher education.

To be sure, there are thousands of excellent, conscientious, hard-working professors out there, but the educational system enables indolence and abuse, with impunity.

Now here is the key question: How many professors at our colleges and universities are like Professor X?

I don’t know.

But I can also tell you that regents, chancellors, presidents, faculty, students, parents, and the public don’t know either – at least not yet. Awareness is limited to the respective trenches of compartmentalized universities. The history faculty knows who the slackers are in the history department, but not in the physics department. Nor do regents or presidents know who the slackers are because there is no overall accountability.

And naturally, the status quo defenders want to keep it that way.

As I mentioned at the outset, there are charges and countercharges, both sides seeming to be right at the time to the confused public. There is only one way to resolve this conflict: regents must require thorough examination of compartmental trenches in the university and report the results to the subsidizing students and taxpayers. That is beginning to happen in Texas, with predictable howls of indignation from university faculty, administrators, and the alumni elites.

via » Higher Education Reform Meets Professor X – Big Government.

The moon or bust

Funny, as I was writing this, David Letterman discussed the future of the US in space with Chris Ferguson, the commander of the last flight of the space shuttle Atlantis.

This afternoon, I got a reminder that Tweets sometimes play time-warp games – I suppose when someone signs up for the first time.

A tweet on the TMA member’s only daily newspaper sent me to an old 2006 post on the Residency Notes blog,with their beautiful theme and graphics (why didn’t I think of that?).  The post concerned Slate.com’s complaints (yes, they’re still around, even today) about NASA and President Bush’s former proposal to put a permanent base on the moon. Why not a little time travel to a time when the US was still considering out of this world research?

It looks like NASA’s cuts may have limited the progress on the base.The recession/depression is reality. Wonder whether there’s any private money out there working on the idea?

NASA is working on a new lunar landing, though, called Morpheus.   You can even follow them on facebook.

I’d donate my own money to a permanent base. Great boon to research in low gravity, some place for kids to reach for and part of that horizon we’re always looking over. (Heinlein, Asimov,and Wall-E fan)

New Right to Government Funding?

“Americans will be thrilled to know that the courts have invented a new “right” to government money.”

These are points that need to be clarified: How much control do the people of the State have when money passes from the taxpayers to the Feds, and then back through the State’s Treasury under the State Legislature and does any entity have a “right” to tax funds? In other words (borrowed from something I read somewhere from Justice Rehnquist) are the courts to decide the big issues and only allow the Legislatures to decide small, inconsequential issues?

Today’s Washington Update, an e-mail newsletter from Tony Perkins and the Family Research Council, reviews a recent legal ruling in a Kansas Court.

The Judge indulged in political speech, himself (“The purpose of the statute was to single out, punish, and exclude Planned Parenthood.”) but he may have a point that Kansas Legislators might not have legal standing to limit the use of Federal Title X (“Title Ten”) family planning funds that come out of Medicaid appropriations. This is a point that needs to be clarified: How much control do the people of the State have when money passes from the taxpayers to the Feds, and then back through the State’s Treasury under the State Legislature?

Here in Texas, there haven’t been any challenges against our new laws that will eventually limit tax payer funds that will go to PP. We worked on Texas’ family planning funds rather than Federal money. We prioritized funds going to hospitals, county health and federally qualified health clinics that provide comprehensive and continuing care for more than one body system. We also tightened up law prohibiting State tax funds from going to any organization or clinic that performs abortions.

Red Tape: Rising Cost of Government Regulation

More Costly Regulations Looming. The torrent of new regulation will not end any time soon. The regulatory pipeline is chock full of proposed rules. The spring 2011 Unified Agenda (also known as the Semiannual Regulatory Agenda) lists 2,785 rules (proposed and final) in the pipeline. Of those, 144 were classified as “economically significant.” With each of the 144 pending major rules expected to cost at least $100 million annually, they represent at least $14 billion in new burdens each year.

This is an increase of 15.2 percent in the number of economically significant rules in the agenda between spring 2010 and spring 2011. Moreover, in the past decade, the number of such rules has increased a whopping 102 percent, rising from 71 to 144 since 2001.[9]

via Red Tape: Rising Cost of Government Regulation.

More de Tocqueville moments (yes, they want to tax and spend)

Last Friday, I was asked by the editors of the New Braunfels Herald-Zeitung, to write the “Counter-Point” to an essay by the Comal County Democratic Party chair (behind a pay-wall, here.) At the time, I didn’t know who the author was and only had a portion of the original to read, but the major points were that the debt ceiling debate was only meant to be used against President Obama and all due to “past policies.” Here’s my answer, along with the title given it by the H-Z:

“The Public Is Being Bribed”

Yes, the current problems with the United States’ budget are due to errors of the past, including those of the current Administration. However, the first author’s basic philosophy is wrong.

In 1831, Alexis de Tocqueville observed, “The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money.”

Last year, nearly half of the people in the United States didn’t pay income taxes. The top 50% paid 96% of the income tax revenues. The top 5% (those earning over $160,000) paid 55% of all income taxes, although they earned 33% of the gross income.

Congress and Federal bureaucracies have expanded the budget and the reach of government regulations. They heaped “ObamaCare”, on top of the “Stimulus,” on top of TARP bailouts, on top of earlier spending that made Conservatives angry enough to stay home in 2006 and 2008. The American voters didn’t like spending in November, 2010 and we don’t like it now.

Ronald Reagan convinced the Democrat-controlled Congress to cut tax rates along with tax deductions and loopholes, increasing Federal revenue. However, promised cuts in spending never materialized and the National debt exceeded $2 Trillion dollars in 1988. In 1995, Bill Clinton forced two government shut-downs, but the Republican House and Senate persisted until he signed  balanced budgets four years in a row.

Unfortunately, since 2001 both Parties have increased non-defense spending in addition to recovery from September 11, 2001, the war on the Afghanistan and Iraqi fronts, and the near-failure of the banking system in 2008. Attempts to decrease the rate of growth for non-essentials and bureaucracies were knocked down by histrionics from special interests and the media, even as new layers of tax credits and deductions were added, until half the country pays no taxes.

America was built on the dream that every child could grow up to be President or start a billion dollar business in the garage like the Wright brothers, Henry Ford and Bill Gates. I don’t remember hearing that if I worked hard, I could grow up to be middle class.

We Americans have a tradition of giving back, lending a hand up, and rescuing the helpless. Bloated Government bureaucracies divide families and force PC “separation of Church and State.” They’re poor substitutes for Churches and private charities that we choose as stewards for our duty to the less fortunate.

Yes, it’s important to think for ourselves and research the truth behind the latest controversies. I wouldn’t expect anything less from the people I know. However, we can learn from history. De Tocqueville also predicted, “”A democracy . . . can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.”

Edited for spelling 3/28/2012 BBN

ObamaCare’s Most Frightening Consequence: Not Enough Doctors – HUMAN EVENTS

It’s more about the hassles and the regulatory burden than the money. We want to help people, but we end up bean counters and paper pushers.

According to Roe, only 4% of the nation’s students are getting into primary care fields.

This is significant. Family Practice residencies have been shut down because the program can claim to have enough “primary care” resident slots in the Internal Medicine department. However, if 96% of those IM docs go on to a subspecialty, they will not practice primary care. We lose both ways.

A survey by the Associations of American Medical Colleges found the nation’s doctor shortage likely will increase the project shortfall of 62,900 doctors in 2016 to 91,500 in 2020.

“When these older doctors who are used to working 70 or 80 hours quit, I don’t know what we are going to do for internists and primary care,” Roe said.

via ObamaCare’s Most Frightening Consequence: Not Enough Doctors – HUMAN EVENTS.

(What the NYTimes.com really means)

Tonight, we saw the Senate Democrats table (without a vote) the debt ceiling Bill passed in the House because it cut spending, did not add taxes, and included a requirement to pass a Balanced Budget Amendment before raising the debt ceiling again.

(NO to #compromise.)Senate Majority Harry Reid (D-Utah) (who hasn’t passed a budget in nearly 3 years, even one sent from the President) along with Senator Schumer (D-NY), then held a press conference to tell us that he’s upset with Senate Minority Mitch McConnell (R-KY) and the Senate Republican Minority want a “filibuster” (they won’t vote to vote on it without a debate).

Then tonight, New York Times had the nerve to print the following in an editorial (parentheses comments are my explanations):

Instead of worsening the bill,

(That means: he wouldn’t agree to more fewer cuts in spending or any increases in taxes.)

Mr. Boehner could have negotiated with Democrats to construct one with a chance of resolving the standoff and passing in the Senate.

(That means he could have agreed to increase taxes so the Dems would agree.)

But concerned largely with preserving his position,

(That means: Republican voters and our Representatives are very serious about cutting spending without raising taxes and we want some sort of Balanced Budget Amendment.)

he gave in to the very lawmakers who have been insisting for weeks that the Obama administration is lying about the coming default. That argument alone should have given him pause about giving in to their demands.

The Senate quickly tabled the revised House bill.

(The Democrat majority refused to vote on the House Bill, so they voiced a decision to “table” it, effectively killing the Bill so it can’t be considered without a majority of votes to bring it back to the floor.)

The legislation being prepared by Harry Reid, the majority leader, would raise the debt ceiling through March 2013. That avoids another showdown, and potential meltdown, in the middle of the crucial retail shopping period and at the start of the presidential campaign cycle, when Washington will be even less open to rational compromise.

What this means: the Dems absolutely do not want to debate the debt ceiling issue to be debated when people are deciding who to vote for in the Primary and in next November’s Presidential election. The NYT and the Dems evidently believe that raising the debt ceiling, increasing spending or taxes will not be popular with those voters.)

via It’s Up to the Senate – NYTimes.com.

NIH-Backed Study Examined Effects of Size of Male Genitalia in Gay Community

This source  and subject of this post is rated PG13, at least, even though I’ve cleaned up the title a bit.

There is a bit of scientific knowledge gained: an association with size and rate of STD’s. However, in medicine, I was taught that we probably shouldn’t measure test if there is no treatable condition involves.

It appears that the stipend for a post-doctoral fellow (someone who has already finished his Ph.D, but is doing further research under the supervision of a professor or committee, was covered by the National Institute of Health (the NIH), as some part of a large grant which was then awarded to subsidiaries:

“Those researchers then compiled data from a survey of more than 1,000 gay and bisexual men at events in New York City for the gay community.

     ”    . . . . But one of the researchers involved with the report told FoxNews.com that NIH funding was only used to help “analyze and write up” data that had already been collected without the use of taxpayer funds.  

“The data were not collected using taxpayer funds,” Jeffrey Parsons, a professor with Hunter College, said in an email. “NIH funds were not used to measure anyone’s penis size.” 

“This study was funded by the Hunter College Center for HIV/AIDS Education Studies and Training,” the National Institutes of Health said. “Dr. Christian Grov was supported as a postdoctoral research fellow at the time the research was conducted by a National Institute on Drug Abuse (NIDA)-funded training grant.”

The de Tocqueville Moment: will we endure?

Has the United States of America reached the Moment predicted by Alex de Tocqueville when,”The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money?”

Congress and the DC bureaucracies have expanded the federal government, increased regulations and permits, heaped ObamaCare —>on top of “Stimulus” —> on top of TARP and all of this —> on top of the other spending that made Conservatives angry enough to stay home in 2006 and 2008 is not the answer.  We didn’t like it in November, 2010 and we don’t like it now!

Edited for spelling 3/28/2012 BBN

Lame Duck President (From Sarah Palin)

Now the President is outraged because the GOP House leadership called his bluff and ended discussions with him because they deemed him an obstruction to any real solution to the debt crisis.

via Lame Duck President.

Federal Reserve Audit: $16 Trillion in loans over 3 years

Yep, $16 Trillion. Or maybe, less?

(or was it $1 T? This guy doesn’t explain his numbers, but REALLY? Only $1 Trillion?)

Thursday, the Government Accounting Office released its review, “Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance” of the accounts of the Federal Reserve Bank’s books from December 2007 through July, 2011. (Some were credit lines never used, some were paid back. As far as I can tell from page 4, there’s $956 Billion still outstanding.  But I’m a doctor, not an accountant.)And some went to foreign-based subsidiaries of US institutions in Switzerland, France, Germany, Scotland, Britain, and Belgium.The GAO report, “Federal Reserve System: Opportunities Exist to Strengthen Policies and Processes for Managing Emergency Assistance, ” is here.

Why GAO Did This Study:
The Dodd-Frank Wall Street Reform and Consumer Protection Act directed GAO to conduct a one-time audit of the emergency loan programs and other assistance authorized by the Board of Governors of the Federal Reserve System (Federal Reserve Board) during the recent financial crisis. 

The GAO criticized the Fed’s reluctance to explain all of it’s reasoning about the emergencies. There’s also criticism about the way that Timothy Geithner, then-Chairman of the New York Federal Reserve Bank, gave waivers and allowed no-contract bids for entities hired to help arrange the Emergency loans. One of those waivers went to a man who had interest in AIG, and is now the President of the New York Federal Reserve Bank, replacing Geithner when the latter moved to DC to take over the Treasury Department.

(I’m thinking they were really scared and doing the best they could at the time.) (But, again, I’m a doctor, not an accountant.)

(That first table is an adaptation of the pdf from CNBC. The second is from the GAO report, page 40.)

The de Tocqueville Moment? (Are you for sale?)

President Obama has declared that he will veto the Cut, Cap,and Balance Bill if it passes. The White House is calling the Bill “extreme, radical, and unprecedented” and  ” the Ryan plan on steroids.” I’m hoping the Republicans in Washington remember who their base is and count his threat as a dare – and call his bluff.

Cut spending first, show a good faith effort, then we”ll talk. President Obama needs to bite the bullet, eat his own peas, and decide that if he wants to cut the deficit and cut debt, some – in the form of savings from cutting unnecessary spending – is better than none.

What Congress and the bureaucracies in DC have done by expanding the federal governments, increasing regulations, permits, heaping ObamaCare on top of the “Stimulus” on top of TARP and all of this on the other spending that made Conservatives angry enough to stay home in 2006 and 2008 is not the answer. We didn’t like it in November, 2010 and we don’t like it now.

I remember that the tax code was simplified when Ronald Reagan cut the tax rates in the 80’s. The Democrat controlled Congress promised cuts in spending to go along with the lost deductions. Those cuts never materialized and federal spending grew even faster than the remarkable Federal revenue.

Federal Revenues and Expenditures 1980-1993

more and more people became beneficiaries of Federal largess.

It’s gotten to the point that more than half of people in the U.S. fell right off the tax rolls. 

Has the United States of America reached the Alex de Tocqueville moment when,”The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money?”   What’s your price?

Edited for spelling 3/28/2012 BBN