Spending

How The Sequester Torpedoed Conservatives’ Credibility

John Boehner

It was a mere tweet, but it summed up the entirety of the modern conservative movement:

It has everything: the source is the preeminent conservative “think tank” in DC, soon to be headed by Tea Party conservative and former senator Jim DeMint; lamenting about spending cuts; the laments are all about a government department that by all rights should not exist; and for good measure, it has a photograph. It shows precisely how the sequester had torpedoed conservative credibility.

We have heard relentlessly these past five years, ever since Obama was elected, that we need to cut spending. (Indeed, another Heritage article is a dorky little bit that specifically notes a “thrifty” House which demands that they have a balanced budget and avoid deficits.) Yet now that there is something which will cut—no, sorry, I can’t type that with a straight face; it will not cut spending, but merely slightly decrease the rate of spending—Heritage is up in arms about it.

Meanwhile, Speaker of the House John Boehner (R-Military Contractors) wrote the following in an op-ed:

Guess who else is against the minimum wage?

minimum wage

Read these paragraphs and see if you can figure out who wrote them:

The Federal minimum wage has been frozen at $3.35 an hour for six years. In some states, it now compares unfavorably even with welfare benefits available without working. It’s no wonder then that Edward Kennedy, the new chairman of the Senate Labor Committee, is being pressed by organized labor to battle for an increase.

No wonder, but still a mistake. Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. A far better way to help them would be to subsidize their wages or - better yet - help them acquire the skills needed to earn more on their own.

An increase in the minimum wage to, say, $4.35 would restore the purchasing power of bottom-tier wages. It would also permit a minimum-wage breadwinner to earn almost enough to keep a family of three above the official poverty line. There are catches, however. It would increase employers’ incentives to evade the law, expanding the underground economy. More important, it would increase unemployment: Raise the legal minimum price of labor above the productivity of the least skilled workers and fewer will be hired.

[…]

The idea of using a minimum wage to overcome poverty is old, honorable - and fundamentally flawed. It’s time to put this hoary debate behind us, and find a better way to improve the lives of people who work very hard for very little.

Guess? Guess? Hmm? Give up? All right then, the individual who wrote this was…

7 on the 7th: Inaugural Low-Hanging Fruit Edition

I’ve decided to start a new feature here at United Liberty, one that would run on a monthly basis. I’m calling it “7 on the 7th.” It will be a list of 7 agencies, on the 7th of the month, that we should get rid of. The purpose is to showcase just how many government agencie that exist, which most Americans just don’t realize. While they may think the government does too much stuff, I doubt that many know just what the government really does. Most don’t know about the ridiculous organizations that are prt of our government, and I can say because I don’t know.

So this will be informative not just for you, dear reader, but also for yours truly. What sort of stupid things can we uncover? Feel free to submit your suggestions for next month’s feature in the comments (but please, don’t be silly and tell me we must get rid of the Department of Defense; we’re moderate, sensible libertarians here, not barking-at-the-moon anarcho-capitalists.) Hopefully, if enough on the web read this feature, we may be able to spark a genuine discussion about the role of government and what it should actually be doing, so when some politician says we need more money to fund essential services, we can tell him (or her) that nothing he (or she) is demanding funding for is actually essential.

Now, on to the inaugural list. For this one I’ve decided to go for the low-hanging fruit, to get them out of the way and remove temptations for future entries. I don’t really expect to surprise anyone with these, but that just goes to show you how many folks think a lot of what our government does is rubbish.

1 - Department of Homeland Security

We Are All Modern Monetary Theorists Now

As a consequence of loose monetary policy with a fiat currency, the United States is rapidly descending into an economic reality of Modern Monetary Theory, or MMT.  While MMT (also known as Chartalism) is typically associated with its Keynesian predecessor and the policies of the Left, new developments reveal that both parties are responsible for the slip into a brave new economic world.

Essentially, there are four preconditions in Modern Monetary Theory:

1) Money enters the economy through government spending, as the total amount of money is constrained not by gold but by the total output of the national economy;
2) Government spending is speculative as it prints as much money as it needs to control production and, as a byproduct, employment, and spending beyond productive capacity leads to inflation;
3) Taxes do not pay for expenditures but are instead a way to throttle private sector demand; and
4) The government is the issuer of the currency, sovereign governments that issue their own currency are never insolvent, so debts essentially don’t matter.

Rand Paul’s New Plan to Prioritize Spending

Rand Paul

Senator Rand Paul has a new plan to prioritize government spending in order to stave off defaults and bring the country back towards solvency:

In a renewed attempt to force President Barack Obama’s hand on the debt limit, Kentucky Republican Sen. Rand Paul is pushing legislation that would ban federal spending on anything but interest payments on the national debt, Social Security checks, and military salaries.

Paul, who is traveling through Israel this week, told Business Insider here Thursday that he believes the GOP should take a more pro-active approach to the coming fight over raising the debt ceiling. Rather than march the country toward a government shutdown — and spook markets with possible default — Paul argued that Republicans should pass a bill that would force the government to prioritize payments to bondholders.

Welfare Recipients Make More Than Honest Workers

welfare_state_greetings

I think I may have finally found the most bothersome, noxious piece of information of all time, thanks to the editors at Townhall.com. The emphasis in the next quote is mine:

It’s official. Taxpayers are no longer simply helping the poor, they’re subsidizing the lives of welfare recipients at a better rate than their own. The Senate Budget Committee has released a report showing households living below the poverty line and receiving welfare payments are raking in the equivalent of $168 per day in benefits which come in the form of food stamps, housing, childcare, healthcare and more. The median household income in 2011 was $50,054, totaling $137.13 per day. The worst part? Welfare payments are equivalent to making $30 per hour for 40 hours a week. The median wage for non-welfare recipients is $25 per hour but because they pay taxes, unlike welfare recipients, the wage is bumped down to $21 per hour.

When I read this, I threw up a bit.

I’m going to be honest with you and tell you a little bit about my personal life, which I don’t typically do in the pages of United Liberty. And I certainly don’t want to start a pity party over me. But here’s the facts: I currently have a paying job, but not a great one. I’m an intern in DC. I make $30 a day. Let me repeat that: I make thirty dollars a day. Yet even though I work hard, create value, and do my damndest to support myself without forcing others to support me, the average welfare recipient receives 5.6 times what I make, paid for with my tax dollars.

Dear Media: This Isn’t About Grover Norquist

Grover Norquist is under fire. Unjustly.

With Republican Sens. Lindsey Graham, Saxby Chambliss, Rep. Peter King and others seemingly deserting Grover Norquist and the Taxpayer Protection Pledge created by his organization, Americans for Tax Reform, media outlets across the spectrum are declaring that the GOP is “Over Grover” and that his vicelike grip of eternal dominance on the GOP might not be so eternal after all. We have images like this one, showing Republican leaders bowing to him as if he is a god. And on and on and on.

What it really is, though, is just another round of misinformation, wrong data, and interpretations based on faulty premises. Yet another sideshow that is completely missing the point, the real debate we should be having in DC.

More about libertarianism, fusionism, and the Romney campaign

Jason Pye has written a great blog post about libertarians and the Romney campaign already. He asked me my opinion about it, perhaps even with the possibility of a “point-counterpoint” sort of thing. I pretty much agree with what he’s saying, particularly about Ron Paul and the Libertarian Party. We are not a monolithic group; we are a very wide and very diverse range of individuals who just want to increase individual liberty.

What I want to add is that, while Republicans and conservatives complain about us, and want us to support them in elections, they have done nothing to earn such support. Let me show you a few examples:

To which I responded with:

And to which I got this response:

Profiles in Liberty: Mia Love, Conservative Candidate for Congress, UT-4

Mayor Mia Love of Saratoga Springs, Utah is running for Congress in her state’s newly created 4th District. A graduate of the University of Hartford with a degree in fine arts, Mayor Love also spent two terms in city council.

As a staunch defender of the Constitution and supporter of limited government, Mayor Love’s principled message was heard throughout the country during her speech to the Republican Convention in Tampa, FL.

National Journal ranked Mayor Love as 1 of the top 10 Republicans you should follow on Twitter. You should do so @MiaBLove.

Mia Love

Matt Naugle: How did you become a conservative?

Mia Love: Our country was founded on the conservative principles of fiscal discipline and small government. I watched as my parents achieved the American dream through the power of those founding principles. I observed as these conservative practices played out in the lives of my parents and came to believe in them and to trust them.

These beliefs and conservative principles were reaffirmed as I married an incredibly self-sufficient, hard-working husband who took responsibility for himself and his family. I have continued to believe in those conservative principles and believe that they are what can bring us back to a strong America.

MN: Your parents were Haitian immigrants. What did you learn from your parents?

America Survived 9/11, But Will It Survive Obama?

Eleven years ago, America was attacked by bloodthirsty Muslim terrorists who hijacked commercial jetliners and flew them into the World Trade Center towers, the Pentagon, and failed in a fourth attack on the Capitol Building or the White House. Three thousand Americans died that day in the most horrific and hateful attack on American soil in history, an attack injuring not only the American economy, but the American psyche. We felt vulnerable and afraid. However, if we are to be honest with ourselves, we will acknowledge the attacks of 9/11 as only the second most destructive event during that span and, in terms of long term damage to the stability of the United States, paling in comparison to the damage inflicted upon us by the Obama administration.

Now, I am well aware this will be considered a hyper-partisan attack on our president, but I believe the facts will justify the claim. The terrorist attacks were brutal to watch, and we could witness the devastation and destruction wrought with our own eyes. The terrorists desired to crush our economy and undermine our faith in our government, to weaken us. You might even say that they wanted to “fundamentally transform” America. Yet within two years America was well on her way to recovering from those events.

It was understandable that the economy was severely damaged that day. As noted in Kiplinger Financial, on the day of the attacks, the unemployment rate was just below 5%, and in the aftermath, with hundreds of thousands of jobs lost in the travel, tourism, and financial industries alone, it would rise to just over 6% in 2003. However, by 2007, the unemployment rate was back down to just over 4%, and America had come roaring back.


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