Spending

“No More Solyndras?” Well, maybe just one more…

DemsGOP_energy.jpg

House Republicans have recently put forward a new bill, H.R. 6213, otherwise known as the “No More Solyndras Act.” It was passed by the House Energy & Commerce Committee on August 1st, and sounds quite promising when you consider the colossal mistake that Solyndra, supported by federal loans, was. It’s estimated that taxpayers will lose over half a billion dollars on Solyndra, which went bankrupt last year. Preventing that from happening again is a great idea.

Unfortunately, the Republicans backing this bill are not really saving you from another Solyndra, or Beacon Power, or Abound. For the “No More Solyndras Act” leaves a gaping hole—as in, everything before December 2011 is still totally cool.

See, it’s “No More Solyndras,” not “No Solyndras.” As the text of the bill makes plain, the Act only prevents new applications from new companies, not applications from ones “grandfathered” in:

Sentences I Hate: “Americans Are Hungry for Leadership.”

Cross-posted from Friction Tape.

By United States Congress [Public domain], via Wikimedia Commons

The Wall Street Journal editorial board today floats House Budget Chairman Paul Ryan as the best possible vice presidential running mate for presumptive GOP presidential nominee and former Massachusetts governor Mitt Romney:

The case for Mr. Ryan is that he best exemplifies the nature and stakes of this election. More than any other politician, the House Budget Chairman has defined those stakes well as a generational choice about the role of government and whether America will once again become a growth economy or sink into interest-group dominated decline.

Against the advice of every Beltway bedwetter, he has put entitlement reform at the center of the public agenda—before it becomes a crisis that requires savage cuts. And he has done so as part of a larger vision that stresses tax reform for faster growth, spending restraint to prevent a Greek-like budget fate, and a Jack Kemp-like belief in opportunity for all. He represents the GOP’s new generation of reformers that includes such Governors as Louisiana’s Bobby Jindal and New Jersey’s Chris Christie.

As important, Mr. Ryan can make his case in a reasonable and unthreatening way. He doesn’t get mad, or at least he doesn’t show it. Like Reagan, he has a basic cheerfulness and Midwestern equanimity.

Paul Krugman is Delusional

It’s official: the New York Times’ resident Nobel Prize Laureate/Loony is delusional. He wrote on his blog Monday about “how right he was”:

We’re coming up on the second anniversary of my piece “Myths of Austerity“, in which I tried to knock down the simply insane conventional wisdom then gelling among Very Serious People. Intellectually it was, I think I can say without false modesty, a huge win; I (and those of like mind) have been right about everything.

But I had no success in deflecting the terrible wrong turn in policy. Moreover, as far as I can tell none of the people responsible for that wrong turn has paid any price, not even in reputation; they’re still regarded as Very Serious, treated with great deference. And the political tendency behind that terrible economic analysis has at least a 50% chance of triumphing in America.

Oh well.

“Oh well” is right.

His first problem is that he says he has “been right about everything.” When one looks at the stimulus programs that have been enacted since this recession began, and the high unemployment that has persisted, the evidence is blatantly clear: Krugman is an idiot.

His second problem is his statement that “I had no success in deflecting the terrible wrong turn in policy.” Um, lest I am living on a different worldline than Krugman, the man’s main policy prescription has been stimulus, and we’ve had a lot of it:

Conservatives Need To Focus On The Two Scandals That Matter

There have been a lot of silly “scandals” during this election season, which is a usual and normal waste byproduct of the American election process, though this year has been notably intense. Unfortunately, between the “scandals” of Obama having eaten dog while a child in Indonesia, criticism over a flubbed line in Poland, guffaws about him using the word “thingamajig” in a speech, and the resurgent “Birther” nonesense, conservatives and libertarians are losing sight of the real problems with the Obama administration. As I see it, there are two that need to be focused on relentlessly:

  1. The absolutely dismal economic situation, exacerbated by this president’s misguided and foolhardy policies
  2. The utterly atrocious record on civil liberties that President Obama has engendered, a holdover from the Bush administration (so much for “Change”)

Everything else can pretty much be secondary to this or just treated as nonsense. These are the real core problems with the Obama administration, and they are all that conservatives need to hammer him with. Forget the memes, forget the social conservatism, just focus on two things: jobs and civil liberties (which does, in case you’re wondering, tie into foreign policy. A bit.)

The economic problem is fairly straightforward: this is the worst recession since World War II, bar none. From the Calculated Risk blog, this chart shows you how badly:

worst_recession

The Land of the Fee and Home of the Slave

In the days leading up to the IPO (Initial Public Offering) of Facebook stock as it became a publicly traded company, much of the news surrounding the company was made not by founder Mark Zuckerberg, but by Eduardo Saverin, a young man who became very rich after he invested his life savings in that unknown company running out of a Harvard dorm room. Saverin had announced that he was renouncing his U.S. citizenship, preferring to make his ties with Singapore instead.

In the aftermath of his announcement, it was claimed that he was doing so in order to avoid the heavy tax burden placed on his wealth by the United States. Senator Chuck Schumer (D-NY), a man of whom former Senator Bob Dole once said that “the most dangerous place in Washington is between Charles Schumer and a television camera,” wasted no time in turning this into face time with the press to score political points, joining with fellow Democrat, Senator Bob Casey (D-PA) in announcing their intention to submit the “Ex-PATRIOT” Act.

According to Schumer, this law would “re-impose taxes on expatriates like Saverin even after they flee the United States and take up residence in a foreign country.” Like a modern-day Rasputin, this would enact into law the assumption that politicians have supernatural powers of mind-reading, and would presume any person who renounced U.S. citizenship, while having a net worth greater than $2 million, or an average five-year income tax liability of at least $148,000, had done so for the purpose of tax avoidance. The law, eviscerating the Constitution’s presumption of “innocent until proven guilty” principle, would require the individual to prove to the IRS that they’d not done so for tax avoidance purposes, or risk additional capital gains taxes on any future investment gains.

Paul Krugman: Patron Saint of Idiocy, Death, and Misery

No, seriously, that is what this man has become. He recently blogged a chart on his blog (inappropriately—or maybe entirely appropriately—named “Conscience of a Liberal,”) showing first quarter growth for five countries:

dumb_krugman_chart

He then goes, “Wait, what? Japan as star performer? What’s that about? Actually, no mystery.”

He links to a Bloomberg article, and excerpts:

Japan’s economy expanded faster than estimated in the first quarter, boosted by reconstruction spending that’s poised to fade just as a worsening in Europe’s crisis threatens to curtail export demand.

So he then argues that the tsunami reconstruction has led to great economic growth, while so-called “austerity” (which isn’t actually austerity at all, if Krugman had bothered to pay attention) has doomed Italy.

It makes perfect sense! Absolutely! Let’s hit Japan with another tsunami that will kill over 15,000 people, injure 27,000 citizens, and make 3,155 go missing! If only the 2011 tsunami had destroyed even more than that paltry 130,000 buildings—if only it had actually caused Fukushima to go critical and explode—it would have created so much potential for rebuilding! It would have shot the Japanese GDP right over the moon!

Can we just sell the Post Office already?

On Wednesday, the United States Senate narrowly avoided a two-year ban on the closing of post offices, which prompted me to ask: do you guys still live in the 1950s?

In a world of Gmail, Twitter, Facebook, cloud services, Google Drive, Dropbox, 3D printing, UPS, DHL, and who knows what else, I have to ask: who still uses the postal service any more?

There are only a few people with which I still get mail from through the USPS. The first are direct mail types, and nobody reads those sort of things. (This is the way your trash can goes “OM NOM NOM.”) The second are my parents and grandparents, so, in other words, old people.

The thing is, as I said, nobody is reading the former, and the latter are getting fewer and fewer. Meanwhile, the postal service is hemmorraghing money; the Cato Institute’s Downsizing Government project notes that it lost $20 billion between 2007 and 2010, and it hasn’t done any better since then. The thing is, we taxpayers are being forced to foot the bill. A bill for something that these days, an increasingly small portion of the populace actually wants. And, at the same time there’s decreasing demand for its services, its costs have continued to go up as it struggles to deal with employee pensions. Not a good situation to be in.

Here’s a better idea: let’s just privatize the post office. And by privatize it, I don’t mean sell it to one major corporation, but let’s privatize the entire industry. Allow competing mail delivery services in the market. Ensure that there are no more monopolies on first-class mail within the United States.

Who Has The Party Delegates?

What all the GOP candidates are after, are so-called ‘delegates.’Elected officials that will broker the convention of either party this fall. Officials are parcelled by the amount of votes, the candidates receive in the primary.

During Michigan’s primary recently, for instance, there were 30 official delegates, state-wide. Two were ‘at-large’ candidates, which meant they could be assigned individually to any winning candidate. The other 28 were ‘proportional’ ones, alotted through 14 congressional districts. During the push for the nominations in Michigan last night, Mitt Romney and Rick Santorum spent millions of dollars to influence the voting population; with TV ads, pamphlets, media, interviews, rallies, stickers, and much more. Michigan’s grand sum of politcal expenditure was near six million bucks.

Delegates are what really counts at the GOP convention. What looks to be happening, is that no clear winner will come out victorious. There’s a righteous number: 1444 delegates will win any nominee the victory-nod of the Republican National Committee. Nationwide, 2169 delegates are extended for contestation, until the RNC celebration in Tampa, Florida. From the RN Committee, an additional 117 delegates are added into the mix, ostensibly to keep debate lively and clear-up dead locks. So what appears, on first looks, to be a rather hot-headed and fast paced Republican rocket-launch to the RNC, is more like a jammed or misfired pistol in a duel.

Momentarily, Mitt Romney is in the lead, with 167 total delegates. Rick Santorum is second with roughly half, at 87. Newt Gingrich won only one state and has 32, while Ron Paul has 19 carefully collected delegations. The count may reshuffle at any moment, since constitutionalism and populism together, ring alarm-bells in states such as Arkansas, Kentucky, Tennessee, Texas, Oklahoma and New Mexico.

Santorum: No Better Than Barack Obama

If you missed the debate on CNN last night in Arizona, count yourself lucky. It was miserable. I only watched it because I discovered—much to my chagrin—that a recently purchased WiMAX adapter allowed me to stream video directly off the web at a framerate that wouldn’t make my brain explode. (It instead left that job up to the candidates.)

If you were a conservative turning in to your first presidential debate, you may have been surprised. Up on stage was one Rick Santorum, former senator from Pennsylvania, who in a number of statements said that he voted against spending and was dead set against the big government philosophy of Barack Obama…only to then say that he wanted to use the power of the government to force his own view of family life on people, and that he was for the big government philosophy of Barack Obama.

Just, you know, for his things. Riiight.

If you were still unswayed by the arguments by myself or Kevin or anyone else that Santorum was not a friend to libertarians or even fiscal conservatives, well, Santorum should have swayed you tonight. Let us focus on his whopper of a quote during one of his numerous tirades against Mitt Romney:

[C]ongress has a role of allocating resources when they think the administration has it wrong.

Newsflash, Santorum: Neither Congress nor the administration has the role of allocating resources. We have this thing called the “free market” that does that. Now, one could say that I was misconstruing Santorum’s argument, because he was only talking about resources that were justly appropriated for government use (though that is a whole Pandora’s box right there.) But as Alex Roarty over at the National Journal points out, the whole thing came in over a discussion on earmarks, something that Santorum has defended.

The death of Baseline Budgeting?

I didn’t put it in my “14 Fixes for our Messed up Country” list, since I thought it was long enough, but one of the things I really think needs to be reformed is the utterly insane institution of “baseline budgeting,” aka “Washington accounting,” aka “DC moonbattery.”

Apparently, though, according to CNS News (no, that’s not a typo) baseline budgeting might be on the ropes:

The House approved a potentially sweeping budget reform Friday that would force federal agencies to justify an annual increase, as opposed to getting an automatic increase under current budget law.

“What we are about to do could be the most responsible financial thing this Congress has done, this House has done in the whole last year,” Rep. Louie Gohmert (R-Texas) said before the vote. “It could be $1.4 trillion in cuts over the next 10 years and all we’re doing is just stopping the automatic increase.”

The Baseline Reform Act of 2012 passed the House by a near party-line vote of 235-177. However, the bill will likely have a difficult time passing the Democrat-controlled Senate.

Under current federal budget law, the amount of money a federal agency will automatically get for the next year is based on the current year’s amount, plus inflation, which is the “baseline” for the next budget year.

Read that last paragraph again, and then ask yourself: where, outside of the federal government, does that sort of accounting work? Do you ever give yourself a budget equal to last year plus inflation automatically? I don’t even think Warren Buffet, as wealthy as he is, does that, nor Mitt Romney. Probably not even Trump, but who really knows what the Donald does.

 


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