Wall Street Weekly | 02/27/2009 8:45 am
Obama Budget a Can of … Pythons, by Liz Peek

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Bears, Bulls, Chickens and Pigs: wOw’s Wall Street Weekly with Liz Peek (Week of 2/23)
Editor’s Note: Liz Peek is a financial columnist and the author of wOw’s SHEconomics.
This was a big week for President Obama. First, he warmed up the nation with a beautifully crafted speech to Congress, then he turned up the rhetorical flame – and scorched a number of industries – with his first budget. I have been reading the fiscal 2010 spending plan and trying to pin down why it makes me so uncomfortable. It isn’t the size, though by any standard $3.55 trillion seems like a monumental amount of money. It isn’t even the deficit of $1.7 trillion, which — he reminds us at every turn — he inherited. (Admittedly, like a good heir, he has surely helped it grow!)What alarms me is that the president appears to have no confidence in private enterprise and, instead, enormous trust that the government can solve our problems. The proposed budget is Shakespearean in its ambitions – launching all manner of new and complicated long-term programs amid a severe recession. It is also vague. Like Treasury Secretary Geithner’s financial plan, the programs are described in generalities, leaving the details to Congress. Oh, dear.
In fairness, this country does need to tackle our aging infrastructure, and we should encourage alternative energy. It is true that the short-term focus of our government and of our corporations distracts from undertaking important initiatives. And we do have problems that need to be addressed, including improving our education system and reducing our dependence on imported oil.
But instead of encouraging corporations to undertake these challenges, President Obama wants to insert government into every facet of health care, energy production, manufacturing and education with complex and occasionally illogical programs. For instance, the president wants to establish fees for those generating pollutants, in a modified version of Europe’s cap-and-trade program (which has been a complete failure). The plan is expected to generate hundreds of billions of dollars – ultimately becoming the sixth largest source of federal revenues in 2019. In effect, this will be a huge new cost to our industries that are struggling to remain competitive on the world stage. Obama wants to create jobs; this is hardly the way to go about it. In any case, recognizing that such a program will drive up utility costs, (but realistically, all costs will rise as the burden will be shared by all industries), Obama’s team plans to compensate our low-income citizens with tax credits. Imagine figuring that one out.
Similarly, he wants to reduce the deductions on mortgage outlays that homeowners in the highest income tax bracket can take, in effect increasing the cost of buying a home. That seems like an exceptionally poor idea when we’re trying to stabilize the critical housing sector. Not until the overhang of homes disappears can prices hit bottom and mortgage-related securities — the stopped heart of the financial system — end their drastic descent. One of the few bright lights on the horizon for the industry is that homes are more affordable than they have been in decades because of lower mortgage rates and prices. Under Obama’s plan, that trend will reverse for a sizeable number of buyers.
Obama also wants the government to end the subsidies available to companies like Sallie Mae that facilitate low-cost student loans. Instead, he wants the federal government to take on that job. My guess is that, before long, we’ll be graduating people in their 30s, taking into account the years they will need to wade through the bureaucracy in search of funding. Never mind that meddling with the industry has already driven scores of companies out of business and severely constricted the availability of student loans.
He is also considering taxing company-provided health insurance, in an effort to make such coverage more affordable. Try to get your head around that one.
Read more about: Barack Obama, Budget, Charity, Government, News, Politics, Recession, Stimulus, Taxes, Tim Geithner























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And another thing—Wake Up America! The housing crash was caused by?? Do you watch c-span or youtube? Did you not see McCain and Bush asking for some control? And what lawyer helped Acorn threaten bankers and their families? go back and look.
and ck out Kanjorski’s story abt the electronic attack on our money market that happened on a thursday morning in mid-September, starting abt 11 in the morning—and the emergency meetings abt it happened on Sept 15—so WHAT Thursday in Sept did it happen? look at a calender-September 11.
We were attacked! go read Diana West from the Washington Post.
Get informed, women!
The idea that we should trust corporations to do the right thing is risible. Liz, you are in denial. That corporate ethics thing fell out of fashion long ago. They are like the children of neglectful parents - without any sense of responsibility, and rotten with entitlement. So the government has to act as a tough parent now. We gave deregulation a try, remember?
It has become jaw-droppingly clear that Barack Obama seeks to radically shift the alignment of this country — tying its citizens to their government in a dramatic leftward lunge the likes of which America has never seen before.
Obama deceitfully billed himself a pragmatist on the campaign trail. He was marketed as a “moderate.” After his November victory, pundits predicted he’d govern from the center. — They couldn’t have been more mistaken. Barack Obama is an extremist progressive who seeks to molest our fiscal values and pumps up our reliance on fruitless government programs.
Obama certainly will be successful in his mission for unparalleled historic recognition. But don’t expect his face on the dollar bill in the future.
Most of the time on the campain trail "the fundamentals of the
economy [were] strong." Or so we were led to believe.
Okay, I’ve been thinking about this today and I have to ask. With Pres Obama proposing to pay for his ambitious liberal agenda with increased taxes on 5% of Americans (including reduced charitable deductions), increases on capital gains, and more corporate taxes (cap taxes). Is he doing this because he wants to punish the job creators, innovators, investors and business people who help fuel our economy? I really don’t get it.
So my question to you 70% or so liberal wower’s out there—do you believe that this 2 - 5% of Americans should be responsible (because that’s what P Obama meant by "taking responsibility") to advance these agendas? Is this their responsiblity? And why? Or is it a punishment for being so greedy?
You know, there are greedy wealthy people out there and same for the not so wealthy. But most of these are good people, who love America, and are producers. Why are they held responsible for all of this? There are lots of people who do well in America, including some of our poor. They do much better than most of the poor in the world. How is "socking it to" the wealthy going to fix all of our poor’s problems—especially if they have to lay off a poor person to pay extra taxes or can’t invest in another job to pay additional capital gains?
This is NOT American and I have yet to see anyone who can explain how this is the right way. Is this Pres Obama’s only way to make this work? Is it yours?
I saw one columnist say "how else are we going to pay for it?" So is that a good reason to do it?
Where do we go when the government needs a bailout ?
Mr. David Walker serves as president and CEO of the Peterson Foundation. Prior to joining the Peterson Foundation, Mr. Walker served as the comptroller general of the United States and head of the U.S. Government Accountability Office (GAO). to 1998, Mr. Walker was a partner and global managing director as a public trustee for Social Security and Medicare from 1990 to 1995.
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hey you guys—thought you’d like this great article…food for thought
March 04, 2009
Obama: The Great Divider?
By Victor Davis Hanson
I confess I did not believe Barack Obama entirely during the campaign when he bragged on working across the aisle and championing bipartisanship.
You see, as in the case of any other politician, one must look to what he does—and has done—not what he says for election advantage.
And in the case of Sen. Obama, in his nascent career in the Senate, he had already compiled the most partisan record of any Democratic Senator. He had attended religiously one of the most racially divisive and extremist churches in the country. His Chicago friends were not moderates. His campaigns for state legislature, the House and the Senate were hard-ball, no-prisoner affairs of personal destruction, even by Chicago standards. Campaign references to reparations, gun- and bible-clingers, and Rev. Wright’s wisdom were not words of healing.
In short, while the rhetoric was often inspirational, I found no real reason then—or now—to believe that Barack Obama wishes to be a uniter. And nothing in his first five weeks of governance has disabused me of that first tough impression.
Nevertheless, here are five modest recommendations that he might adopt if he were really interested in bringing the country together.
1) Forget talk radio. During the campaign, President Obama, you went after Sean Hannity on numerous occasions—which are recycled ad nauseam almost daily as sound-bites on his radio program. Once in office, both you and your staff have zeroed in on Rush Limbaugh by name. But Presidential candidates and elected Presidents must seem above the fray, and not descend into tit-for-tat with media celebrities. There is a reason why even your closest associates have ceased calling you Barack and now quite properly address you as "Mr. President"—and it is not due to your persistence in demonizing talk radio.
Did George Bush go after Bill Maher or Air America or Keith Olbermann when almost daily they slandered his character? Did he serially evoke Michael Moore? To have done so by name, would have demeaned his office. Worry about refuting conservative ideas, and governing the country, rather than dueling over the airways with those who get paid for only that. The country wanted a Lincoln, not another Nixon going after Dan Rather at a press conference. So far your administration resembles the latter, not the former.
2) Forget about George Bush. We got the message already that he is near satanic, you angelic. Yet even in your inauguration speech, you could not leave well enough alone, and so once again went after a predecessor who won two elections, and so far has been circumspect in his criticism of your own brief tenure. Even ex-Presidents—cf. Jimmy Carter’s self-serving ankle-biting and Bill Clinton contorted snipes—reduce the office when they engage in schoolyard "they did it, not me" finger-pointing.
Again, in your first address to the nation, you went out swinging: "As for our common defense, we reject as false the choice between our safety and our ideals." But President Bush never set up such a Manichean either/or situation, as you yourself must accept, when you embraced his protocols on FISA, the Patriotic Act, the Bush-Petraeus Iraq withdrawal plan, and kept rendition, and so far have not quite closed Guantanamo.
And there was more still in that address: "A surplus became an excuse to transfer wealth to the wealthy instead of an opportunity to invest in our future…Regulations were gutted for the sake of a quick profit at the expense of a healthy market."
But Mr. President, deficits arose from out-of-control spending, inasmuch as the Bush tax cuts resulted in increased revenue. It is fair to fault the past eight years of profligate spending, but when you engage in such demagoguery, the American people can detect your subtext: "I won’t criticize Bush’s spending because I found it not enough and will trump it; I will criticize his tax cuts, since I want to make the wealthier pay for my even greater borrowing."
Cutting taxes on everyone who pays them is not transferring wealth, unless you believe that one’s own income belongs to the government in the first place. Under Bush, nearly 50% of the tax filers for the first time paid no income tax at all—hardly a transfer of wealth.
As far as "gutting" regulations go, I don’t think you wish to go there—given the careers of Franklin Rains, a disgraced Jim Johnson (of your recent hire), Barney Frank, and Chris Dodd, who not only really did gut regulations that were at the center of the financial meltdown, but profited from such complicit laxity.
3) Drop the messianic style. The campaign is over. The Victory Column and Parthenon facades belong to last summer. Remember, it’s hard finding elites to serve in government that are not tainted. You yourself discovered that depressing fact when you nominated tax-dodgers and lobbyists to your own cabinet. Not only did you have far more trouble on such ethical fronts than did Bush in his first month of nominations, but you suffered the additional wage of hypocrisy after adopting the prophetic rhetoric about your own virtue. 2012 will come soon enough without vero possumus at every turn.
4) Enough of the evil "rich." We’ve heard now about the proverbial jets, parties, and ‘they want us to eat cake’ rhetoric that is approaching the sloganeering of the French Revolution. No one likes a Bernie Madoff, or supports AIG and Citicorp execs wanting federal subsidies to cover their lavish lifestyles.
But a little humility is in order: the problem is not just Richard Fuld at a bankrupt Lehman Brothers, but also Clintonites like Robert Rubin at Citicorp, and liberals at Freddie and Fannie who took millions while destroying the financial integrity of hallowed institutions.
A William Jefferson, Charles Rangel, or John Murtha is an advertisement for ethical impropriety. Nancy Pelosi’s private jet is as worrisome as those of the Big Three auto execs now on public assistance; both Ms. Pelosi and the car CEOs get federal monies and preside over bankrupt entities—and fly in class.
You are our President; so, please, begin seeing greed as an equal opportunity vice that infects liberal and conservatives alike—and anyone else with all too human frailties. If anything, the liberal egalitarian suffers the additional wage of hypocrisy for engaging in Rangelesque schemes or Robert Rubin ‘me-first’ bonuses—in the same manner conservatives do when caught with women or drugs after boasting of the need for old-time morality.
5) Stop the dissimulation. Your plan might work for a while given the incineration of trillions in stock and home equity and the need for replacement cash, but its revenue-raising component is not just aimed at the miniscule number of "rich", which you imply to the American people are flying the skies of America in private jets while being unpatriotic in avoiding taxes and violating regulations.
In fact, for your plan to succeed, you must go after the upper, upper middle-class, those making between $250,000 and $600,000 who are restaurant owners, home builders, labor contactors, architects, surgeons, engineers, hospital executives, college administrators, Ivy-League law professors, and many dentists.
These households are wealthy, yes; but they don’t own or even fly on $50 million private jets or host private Super Bowl parties. Their income is all reported, and with such good salaries come high insurance and, in the case of business, constant reinvestment and expensive inventories. They are not greedy, but the bulwark of the United States’ productive classes who in aggregate pay over 40% of the collective income taxes, and provide most of the jobs in the country. Under your plan many in these high-tax states will pay nearly 70% of their incomes in FICA, Medicare, federal income, and state income taxes. Why gratuitously mislead the American people that those for whom you will lift FICA ceilings or up their IRS bites to 40% are in any way synonymous with the super-rich? Remember the very, very wealthy voted overwhelmingly in your favor precisely because their riches gave them immunity from high taxes, and in many cases they were far removed from the everyday risk and worry of owning a hardware store or trying to keep together a family-owned construction firm. George Clooney is a world away from a paving contractor, just as making $400,000 a year on call 24/7 is not quite making $40 million investing or $2 million for a cameo.
So please no more intellectual dishonesty, Mr. President. Those in great numbers who will pay your higher taxes are not really the rarer Warren Buffets, Bill Gateses, Diane Feinsteins, Teresa Heinz Kerrys, Sean Penns, George Soroses, Oprah Winfreys, or Tiger Woodses, whose mega-wealth really does result in private jet rides, and yet exempts them from worries that increased taxes might wreck their small businesses.
A final note. You are engaged on a vast revolutionary agenda, one that if successful will create a high-tax, big government, large entitlement, UN-centered, and European-emulating country, far different from America of the past. Given your political skills and the current economic crisis, you, as FDR once did, may well pull it off.
Such radical transformation ipso facto creates winners and losers and means radical readjustments that stir passions. But the challenge of a President is to show empathy for those you must target, and some sensitivity to counter-arguments made from good intentions and sound logic.
Instead, you are beginning to create an ‘us/them’ climate of increasing passionate intensity, and unleashing zeal that cannot be healthy for the country. So far your soaring rhetoric, untraditional background, and the good will of the American people have mitigated such extremism as your Attorney General calling the nation collective "cowards" or your own serial invective against "the rich," "bankers" and Rush Limbaugh.
But there will come a time, when you will rue the politics of class warfare and the rhetoric of the demagogue—and may find the very intensities that you are unleashing for political advantage now, later on will be precisely those that you most regret that even you cannot control.
So a little less ‘Bush did it’ or Rush this and Sean that, and a little more of the need of all Americans to debate in calm and respect dissension in these times of uncertainty in which no one has all the answers.
Victor Davis Hanson is a classicist and historian at the Hoover Institution, Stanford University, and author, most recently, of "A War Like No Other: How the Athenians and Spartans Fought the Peloponnesian War."
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Last week, HUMAN EVENTS reported that eleven states, Washington, New Hampshire, Arizona, Montana, Michigan, Missouri, Oklahoma, Minnesota, Georgia, South Carolina, and Texas, had all “all introduced bills and resolutions” declaring their sovereignty over Obama’s actions in light of the 10th Amendment.
These actions are in response to the Obama administration’s faux-“stimulus” legislation which directly assaults the rights of states to reject the money coming from the federal government. So far, several Republican governors — among them South Carolina’s Mark Sanford and Louisiana’s Bobby Jindal — have said they would refuse all or part of the stimulus money because of the constitutional infringements and because of the additional unfunded liabilities they impose on the states.
This week, HUMAN EVENTS is happy to report that five more states have decided to invoke the 10th as well.
These five — Tennessee, Kentucky, Kansas, Indiana, and West Virginia — have all begun their action under the 10th Amendment in a bid to protect themselves from what they view as nothing less than an unconstitutional usurpation of power on the part of the Obama administration.
On February 23, HJR 108 was put forth in the Tennessee legislature, indicating that legislators in that state decided “it [was] time to affirm state sovereignty under the Tenth Amendment to the Constitution of the United States and demand the federal government halt its practice of assuming powers and of imposing mandates upon the states for purposes not enumerated by the Constitution,” according to Truman Bean.
The very next day, February 24, Kentucky State Representative John Will Stacy (D), “introduced House Concurrent Resolution 168… serving notice to the federal government to cease mandates beyond its authority.”
In declaring their sovereignty these states have joined what has come to be known as “the 10th Amendment movement.” It is a grassroots, conservative movement that seeks to defend the separation of powers as originally set forth by our Founders in the Constitution.
Through this movement, conservatives are throwing down the gauntlet against tyranny and the abuse of power. They are invoking the 10th Amendment at the state level against abuses of power by the federal government, and doing so with appeals to the extra-constitutional writings of our Founding fathers.
For example, Indiana’s resolution calls attention to the words of Alexander Hamilton, a Federalist and Founder who “expressed his hope that ‘the people will always take care to preserve the constitutional equilibrium between the general and the state governments.’” Hamilton “believed that ‘this balance between the national and state governments forms a double security to the people. If one [government] encroaches on their rights, they will find a powerful protection in the other. Indeed, they will both be prevented from over-passing their constitutional limits by [the] certain [rivalry] which will ever subsist between them.’”
Kansas’ Senate Concurrent Resolution No. 1609 delves even deeper into the mechanics of the matter by reminding the Obama administration, as well as the House and Senate, that “the scope of power defined by the Tenth Amendment means that the federal government was created by the states specifically to be an agent of the state.” In other words, the federal government exists by and for the states, not the other way around.
The resolution headed to West Virginia’s 79th Legislature couples its action under the 10th Amendment with a reminder directed to Speaker of the House Nancy Pelosi (D-Calif.) and Senate Majority Leader Harry Reid (D-Nev.): “[The] United States Supreme Court has ruled in New York v. United States, 112 S. Ct. 2408 (1992), that Congress may not simply commandeer the legislative and regulatory processes of the states.” This reminder is followed by a pronouncement that “a number of proposals from previous administrations and some now pending from the present administration and from Congress may further violate the Constitution of the United States.”
In light of these violations of the Constitution, the stated purpose of West Virginia’s resolution is, in part, to “serve as Notice and Demand to the federal government, as our agent, to cease and desist, effective immediately, mandates that are beyond the scope of these constitutionally delegated powers.”
Our rights as citizens are under assault by an administration of leftist ideologues with an insatiable appetite for power. There is little difference between them and the appeasement-drunken, government-expanding leftists in Lyndon Baines Johnson’s administration of whom Ronald Reagan said in 1964, “Inalienable rights are now considered to be a dispensation of government…and freedom is close to slipping from our grip.”
Every state assembly and legislature that has joined “the 10th Amendment movement” understands that Reagan’s words about freedom’s fragility in 1964 are no less true for our day when not only freedom, but also the America ideal, is “close to slipping from our grip.”
We must stand shoulder to shoulder with states like Tennessee, Kentucky, Kansas, Indiana, and West Virginia in demanding that the federal government immediately “cease and desist” its usurpation of our liberties.