Regulation

Imperial presidency: Obama threatens executive action on economy

As part of his ongoing effort to change the narrative in the media, President Barack Obama told reporters yesterday that his administration will resort to executive action to enact parts of his economic agenda if Republicans won’t play along:

With two weeks left before delivering an economy-focused State of the Union address to Congress, Obama is picking up the pace of his jobs message and demonstrating how he can advance his economic agenda administratively and through his ability to coax action from important interest groups.

“We’re not just going to be waiting for legislation in order to make sure that we’re providing Americans the kind of help they need,” Obama said Tuesday as he convened his first Cabinet meeting of the year. He said he would instruct his department heads to “use all the tools available to us” to assist the middle class.
[…]
Obama’s reliance on his executive powers and his bully pulpit — at the White House it’s called his “pen-and-phone” strategy — illustrates the means at his disposal to drive policy but also highlights the limits of his ability to work with Congress.

Only through legislation can Obama obtain some of the most ambitious items on his economic agenda — from a higher minimum wage to universal preschool to an overhaul of immigration laws, three items in his 2013 State of the Union that will make a return appearance in this year’s address.

As long as Republicans in Congress are unreceptive to his legislative priorities, he will have to settle for more incremental and narrower solutions that don’t necessarily have the staying power and the force of law.

The “war on poverty” turns 50

LBJ

If you’re paying attention to Washington politics, you know that there is currently a big push underway by the White House and congressional Democrats to highlight income disparities in the United States.

The familiarity of this song and dance aside — which is, of course, another attempt to turn Americans’ attention away from Obamacare, an unpopular law, and President Obama’s terrible job approval rating — it’s worth noting that today is the 50th anniversary of the “war on poverty.” After this decades-long war, the poverty rate has barely moved, despite Congress spending trillions of dollars to combat it.

The Washington Examiner explains that, by any measure, the war on poverty has been a failure when viewed at the money spent compared to the poverty rate:

[W]hen LBJ declared the war, the U.S. economy was surging and the poverty rate had already declined from 22.4 percent in 1959, the earliest year available from the Census. Between 1965 and 2012, the national poverty rate has stubbornly averaged 13.6 percent per year and it has never fallen below 11.1 percent.

During the current economic downturn, the poverty rate was 15.1 percent in 2010, and 15 percent in 2011 and 2012 (the last year for which Census data is available). That’s the highest it’s been in a three-year span since 1964, and it means a stunning 46.5 million people are still living in poverty half a century later.

Poll: Americans pessimistic about the economy

More than five years after the recession officially ended, there are some signs of life in the economy. There have been a couple months solid job growth and the stock market is surging. But the vast majority of Americans are still pessimistic about the economy as they head into 2014, according to a new CNN poll:

A new CNN/ORC poll released Friday showed people were pessimistic that the economy was improving. Nearly 70% said the economy is generally in poor shape, and only 32% rated it good.

Two-thirds of respondents said most of the economic news they’ve heard recently was bad news. More rural than urban dwellers said the economy was in poor shape.

And just over half expected the economy to remain in poor shape a year from now.
[…]
Those people aren’t buying big-ticket items like furniture or appliances, and some were cutting back on essentials. Thirty-six percent said they were cutting back spending on food or medicine, up from 31% in late 2008, the year the housing market collapsed.

It hard to blame people for feeling this way about the economy and for doubting that there will be any improvement in the next year. They’ve been told time after time by President Obama that the economy was improving. How many times were we told that the 2009 stimulus saved the economy or hear the phrase “summer of recovery”?

Jennifer Lawrence: A product of her world

Jennifer Lawrence

I’ll admit it.  I’m a big fan of Jennifer Lawrence.  The Oscar-winning actress is both beautiful and down to Earth, something I rarely get from most in Hollywood.  However, many conservatives and libertarians are justifiably upset about comments Lawrence recently made to Barbara Walters.

From The Daily Caller:

“The word ‘fat’ I think should be illegal,” the Oscar winner told Walters. “If we’re regulating cigarettes and sex and cuss words, because of the effect they have on our younger generation, why aren’t we regulating things like calling people fat?”

Now, I’m not going to excuse Lawrence’s desire to outlaw a word.  However, I am going to point out the rest of her comments, in bold above.

Many libertarians - and yes, a fair number of conservatives - argue that a simple regulation can lead to more and more intrusive regulations.  Lawrence, a product of her times and her society, is simply manifesting the innate desire to build upon previous works to move society in a direction more to her liking.

Is she right?  No, she’s not.  Banning a word like “fat” would make me criminal on a daily basis.  Am I some bully who’s shaming my son or daughter into developing an unreasonable body image?  No, I’m usually talking about my fat ass.  However, the act of banning the word - a word which is also used for a necessary macronutrient found in food, I might add - would make my own self-deprecation illegal.

Kentucky Republicans file brief at Supreme Court, seek to end Obama’s war on coal

Republican members of Kentucky’s congressional delegation have filed an amicus brief in a pending case at the Supreme Court which could have big implications on the Commonwealth’s coal industry and, by extension, its economy.

The case, Utility Air Regulatory Group v. Environmental Protection Agency, deals with regulations enacted by the Obama Administration in 2010 that would impose stricter limits on emissions from “stationary sources,” such as coal-fired plants. The EPA claims this authority through a 2007 Supreme Court decision, Massachusetts v. Environmental Protection Agency, which allowed the agency to regulate vehicle emissions.

The problem is that the EPA essentially re-wrote provisions of the Clean Air Act to raise the emissions threshold to 75,000 tons per year from 100 tons, which, as the Wall Street Journal recently noted, “would require some six million buildings to get environmental permits, including such grand polluters as churches and farms.”

“Recognizing that such a rule would create ‘absurd results’ like shuttering the entire economy, the EPA rewrote Congress’s numbers and adjusted the threshold to 75,000 tons from 100 tons,” the Journal explained. “EPA’s clear political purpose was to escape a large political backlash to its new rules by unilaterally limiting their reach.”

Kentucky Republicans argue that the EPA has overstepped its bounds by trying to re-write the law, thus usurping power from the legislative branch, and promulgate new rules that would hurt the coal industry.

WaPo: White House delayed environmental, healthcare rules before 2012 election

Government agencies were told to delay enacting environmental and healthcare rules, among others, according to a report from Washington Post, for fear of the role the regulations could play in the 2012 presidential election:

The White House systematically delayed enacting a series of rules on the environment, worker safety and health care to prevent them from becoming points of contention before the 2012 election, according to documents and interviews with current and former administration officials.

Some agency officials were instructed to hold off submitting proposals to the White House for up to a year to ensure that they would not be issued before voters went to the polls, the current and former officials said.

The delays meant that rules were postponed or never issued. The stalled regulations included crucial elements of the Affordable Care Act, what bodies of water deserved federal protection, pollution controls for industrial boilers and limits on dangerous silica exposure in the workplace.

Obama Administration studying how to make Americans do what it wants

Obama's propaganda

The Obama Administration is taking the study of behavioral economics and government paternalism to a new level by setting up a task force to come up with ways to determine how best to influence or nudge Americans to make decisions of which it approves, via Richard Williams at Politico Magazine:

Rand Paul proposes “Economic Freedom Zones” for Detroit, other challenged cities

Rand Paul

Sen. Rand Paul (R-KY) plans to introduce legislation that would empower impoverished cities to break the chains of big government tax and regulatory policies that have prevented economic opportunities.

In a speech in the heart of Detroit, arguably the most financially troubled city in the country, Paul detailed the principles behind the legislation — The Economic Freedom Zone Act — and explained that the resilience and optimism of its residents and economic freedom are a way to break the stagnation in which they currently find themselves.

“Detroit’s future…will not come from Washington. The magic of Motown is here in the city,” Paul said on Friday at the Detroit Economic Club. “It’s not in some central planner’s notebook. What Detroit needs to thrive is not Washington’s domineering hand — but freedom from big government’s mastery.”

“To thrive, Detroit needs less government and more freedom — less red-tape, less punitive taxes, more money left in Detroit,” he said. “The answer to poverty and unemployment is not another government stimulus, it’s simply leaving more money in the hands of those who earned it.”

“These ‘freedom zones’ will dramatically reduce taxes and red-tape so that Detroit businesses can grow and thrive,” he explained, noting that the idea is similar to one proposed by the late Rep. Jack Kemp (R-KY). “This bill will lower personal and corporate income taxes in Detroit to 5%. My bill will also lower the payroll tax — 2% for the employees, 2% for the employers.”

Nanny State FDA bans trans fats

Donuts

Nanny State regulators at the Food and Drug Administration (FDA) announced late last week that it will require restaurants and other food makers to phase out the use of trans fats in their recipes, claiming that such a move will prevent heart attacks and deaths:

Heart-clogging trans fats were once a staple of the American diet, plentiful in baked goods, microwave popcorn and fried foods. Now, mindful of the health risks, the Food and Drug Administration is getting rid of what’s left of them for good.

Condemning artificial trans fats as a threat to public health, the FDA announced Thursday it will require the food industry to phase them out.
[…]
It won’t happen right away. The agency will collect comments for two months before determining a phase-out timetable. Different foods may have different schedules, depending how easy it is to find substitutes.

“We want to do it in a way that doesn’t unduly disrupt markets,” said Michael Taylor, FDA’s deputy commissioner for foods. Still, he says, the food “industry has demonstrated that it is, by and large, feasible to do.”

This ban managed to fly under the radar with all of the public focus on other stories, like the government shutdown and Obamacare, over the last month. There has been a public campaign for years to try to raise awareness to trans fats, which can be, if consumed often enough, hazardous to people’s health.

That apparently wasn’t enough for busybody regulators. The FDA contends that banning trans fats, thus eliminating public choice and personal responsibility, will prevent some 20,000 heart attacks each year and 7,000 deaths.

No, the insurance industry hasn’t been under-regulated

During his speech last week in Boston, President Barack Obama tried to sell his healthcare reform law by slamming “bad-apple” insurance companies that, in his opinion, sold health plans that weren’t up to par.

“Remember, before the Affordable Care Act, these bad-apple insurers had free rein every single year to limit the care that you received, or use minor preexisting conditions to jack up your premiums or bill you into bankruptcy,” he said. “So a lot of people thought they were buying coverage, and it turned out not to be so good.”

 
 


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