When Barack Obama was sworn in as president, he chose the Bible that Abraham Lincoln used on which to take the oath of office.
A little over a year later, as President Obama strong-arms House and Senate Democrats to pass a health-care bill that will nationalize 17 percent of our economic lives – a bill that Americans don’t want – we ought to recall Lincoln’s famous words at Gettysburg.
Dedicating the final resting place for those who fought there, Lincoln appealed that we not let up in the struggle for “government
of the people, by the people and for the people.”
Democrats may soon show, if we let them, that the American ideal of representative government – government of a nation, in Lincoln’s words, “conceived in Liberty” – is lost.
Bending rules into a procedural pretzel, Democrats will attempt to pass one of the largest government takeovers of private American lives in history without a single Republican vote and, against the will of the people. Obama will sign it into law.
Democrat pollsters Pat Caddell and Doug Schoen write in the Washington Post, “… a solid majority of Americans oppose the massive health-care reform plan.”
Pollster.com, which reports an average of all polls, shows that now for the first time disapproval for President Obama exceeds approval – 48.8 to 47.5 percent.
According to Gallup, just 21 percent of Americans are satisfied with the direction of the country, down 10 points from spring of last year when the health-care reform push began.
And, per the latest from the Pew Research Center, only 13 percent of Americans view health care as “our most important problem.”
But this isn’t about logic. Mr. Obama and his colleagues on Capitol Hill perceive a once-in-a-lifetime opportunity to grasp the holy grail of the left and realize the dream of transforming America into a European-style welfare state. Democracy – what the American people actually want – is just not going to stand in the way.
It isn’t just about Republican opposition. Nancy Pelosi must persuade, bribe and threaten to get 216 House Democrats to support this despite having 253 sitting House Democrats.
Speaking the other day in Missouri, Obama mocked Republicans who want to stop this train and begin the process over.
But Warren Buffett, the legendary investor and one of the nation’s wealthiest men – himself a Democrat – said the same thing in an interview on CNBC.
Buffett said we should “start over.” And he said, correctly, that the main health-care problem is runaway costs and that the bill the president is pushing “unfortunately … doesn’t attack the cost situation that much.”
Yet, in his remarks in Missouri, the president said, “Let me tell you, we’ve incorporated almost every serious idea from across the political spectrum about how to contain rising health-care costs. There’s not an idea out there that we have not worked on, that we have not included in this proposal.”
At the recent White House health-care summit, Rep. Paul Ryan challenged with clarity the massive accounting gimmicks and hallucinatory economic assumptions Democrats have used to present this massive budget-busting disaster of a bill as a prudent deficit-cutting measure.
Ryan, speaking for Republicans, showed that the 10-year costs are in reality $2.3 trillion, rather than under a trillion as claimed. It’s all been ignored.
In the one laboratory experiment we have – Massachusetts – which enacted a state plan similar to what Democrats want for the nation, premiums are now the highest in the nation, and per-capita health expenditures are 27 percent higher than the national average.
Every freedom-loving American patriot who cares about our future should be on the phone today to their senators and congressmen saying “stop.”
The new Obama Fed is going to be very dovish when it comes to fighting future inflation and defending the value of the dollar.
The president has nominated Janet Yellen to be vice chair of the Federal Reserve. Ms. Yellen is a distinguished economist who unfortunately subscribes to the Phillips-curve model that trades off unemployment and inflation. In other words, rather than excess money creation as the cause of rising prices, she focuses on the unemployment rate, the volume of new jobs being created, and the growth of the overall economy. For Ms. Yellen, inflation is caused by too many people working and too much economic prosperity.
And since we have the opposite problem today — high unemployment and too few people working — she will be the last Fed governor to turn out the lights on the central bank’s zero interest rate.
There is no evidence in Ms. Yellen’s public opinions or speeches that she might use a market-price rule — targeting commodities, gold, bond rates, or the dollar — as a forward-looking inflation (or deflation) signal. So the absence of a commodity- or dollar-price rule will continue at the Fed. Ben Bernanke doesn’t use a market-price rule, and Obama’s additional Fed appointees — whoever they are — will undoubtedly come from the same Phillips-curve camp.
Supply-siders like myself who believe that only market prices can provide accurate signals of the supply and demand for money are going to be very disappointed. If the Fed supplies more cash than markets want, the inflation rate can go up whether unemployment is high or low. We learned this painfully in the 1970s, when high unemployment was accompanied by high inflation.
Even more troubling, fiscal policies coming out of Washington will reduce the investment demand for money. This is because tax rates on those individuals, families, and entrepreneurs who are most likely to save and invest are going up. Rather than extending the Bush marginal-tax-rate cuts on capital gains and other forms of investment, Washington will let that tax relief expire at the end of this year.
On top of this, Obamacare proposes to apply the 2.9 percent Medicare payroll tax on ordinary labor income to capital gains, dividends, interest, and profits from passive investments in partnerships and S-corporation small businesses.
Saving and investment are already double-taxed several times over. This includes the inheritance tax, which is slated to rise substantially next year. But taxing successful investors and earners is the exact wrong policy. Continued…
This headline in the Washington Post seemed like a pleasant surprise: “Rise in Washington Area Unemployment Seen as Good Sign for Economy’s Recovery.”
The logic seems unassailable: The District of Columbia is the hub of the political class. Higher unemployment in Washington and vicinity thus means fewer parasites feeding off the productive economy, which augurs well for recover[y]. But we wouldn’t have expected to read it in the Washington Post.
Turns out we would have been right, for it turns out the story actually says that higher unemployment in Washington is a sign of prosperity in Washington:
Unemployment rates rose in the District, Maryland and Virginia in January, a shift that economists said could be a positive sign for the economy because it suggests that discouraged job-seekers are feeling more optimistic about their prospects and have resumed looking for work.
So what looks to the Post like good news that looks like bad news is actually bad news that looks like good news.
While the White House claims their stimulus bill “has already created or saved up to 2 million jobs,” the table below compares the White House’s original projections of state-by-state job creation with the actual change in state payroll employment through January 2010, using the latest data from the U.S. Department of Labor. Only North Dakota, Alaska and the District of Columbia have seen net job creation since stimulus, and even those levels fall far short of what the White House forecast.
To see how the Democrats’ stimulus has failed your state, see the table below.
State
Administration Claims of Change in Jobs Through December 2010
CONSERVATIVES – believe in personal responsibility, limited government, free markets, individual liberty, traditional American values and a strong national defense. Believe the role of government should be to provide people the freedom necessary to pursue their own goals.
Conservative policies generally emphasize empowerment of the individual to solve problems.
LIBERALS – believe in governmental action to achieve equal opportunity and equality for all, and that it is the duty of the State to alleviate social ills and to protect civil liberties and individual and human rights. Believe the role of the government should be to guarantee that no one is in need. Believe that people are basically good.
Liberal policies generally emphasize the need for the government to solve people’s problems.
THE ISSUES:
ISSUE
CONSERVATIVE
LIBERAL
Abortion
Human life begins at conception. Abortion is the murder of a human being. Nobody has the right to murder a human being.
Support legislation to prohibit partial birth abortions, called the “Partial Birth Abortion Ban” (partial birth abortion – the killing of an unborn baby of at least 20 weeks by pulling it out of the birth canal with forceps, but leaving the head inside. An incision is made in the back of the baby’s neck and the brain tissue is suctioned out. The head is then removed from the uterus.)
A fetus is not a human life.
The decision to have an abortion is a personal choice of a woman regarding her own body and the government should stay out of it. Women should be guaranteed the right to a safe and legal abortion, including partial birth abortion.
Affirmative action
People should be admitted to schools and hired for jobs based on their ability. It is unfair to use race as a factor in the selection process. Reverse-discrimination is not a solution for racism.
Due to prevalent racism in the past, minorities were deprived of the same education and employment opportunities as whites. We need to make up for that.
Support affirmative action based on the belief that America is still a racist society. Minorities still lag behind whites in all statistical measurements of success. Also, the presence of minorities creates diversity.
Death penalty
The death penalty is a punishment that fits the crime; it is neither ‘cruel’ nor ‘unusual’. Executing a murderer is the appropriate punishment for taking an innocent life.
We should abolish the death penalty. The death penalty is inhumane and is ‘cruel and unusual’ punishment. It does not deter crime. Imprisonment is the appropriate punishment. Every execution risks killing an innocent person.
Economy
The free market system, competitive capitalism, and private enterprise afford the widest opportunity and the highest standard of living for all. Free markets produce more economic growth, more jobs and higher standards of living than those systems burdened by excessive government regulation.
Favor a market system in which government regulates the economy. We need government to protect us against big businesses. Unlike the private sector, the government is motivated by public interest. We need government regulation to level the playing field.
Education – school vouchers
School vouchers will give all parents the right to choose good schools for their children, not just those who can afford private schools. Parents (who pay the taxes that fund the schools) should decide how and where to educate their child.
School vouchers are untested experiments. We need to focus on more funding for existing public schools -to raise teacher salaries and reduce class size.
the Environment
Desire clean water, clean air and a clean planet, just like everyone else. However, extreme environmental policies destroy jobs and damage the economy.
Changes in global temperatures are natural over long periods of time. So far, science has not shown that humans can affect permanent change to the earth’s temperature.
Conservatives don’t care about protecting the environment.
Industrial growth harms the environment.
Global warming is caused by an increased production of carbon dioxide. The U.S. is a major contributor to global warming because it produces 25% of the world’s carbon dioxide. The U.S. should enact laws to significantly reduce that amount.
Gun control
The Second Amendment gives the individual the right to keep and bear arms. Gun control laws do not thwart criminals. You have a right to defend yourself against criminals. More guns mean less crime.
The Second Amendment gives no individual the right to own a gun, but allows the state to keep a militia (National Guard). Guns kill people. Guns kill children.
Health care
Free healthcare provided by the government (socialized medicine) means that everyone will get the same poor-quality healthcare. The rich will continue to pay for superior healthcare, while all others will receive poor-quality free healthcare from the government. Health care should remain privatized.
Support Healthcare Spending Accounts.
Support universal government-supervised health care. There are millions of Americans who can’t afford health insurance. They are being deprived of a basic right to healthcare.
Homeland security
Wary of parts of the Patriot Act
Oppose the Patriot Act
Immigration
Support legal immigration at current numbers, but do not support illegal immigration. Government should enforce immigration laws. Oppose President Bush’s amnesty plan for illegal immigrants. Those who break the law by entering the U.S. illegally should not have the same rights as those who obey the law by entering legally.
If there were a decrease in cheap, illegal immigrant labor, employers would have to substitute higher-priced domestic employees, legal immigrants, or perhaps increase mechanization.
Support legal immigration and increasing the number of legal immigrants permitted to enter the U.S. each year. Support blanket amnesty for current illegal immigrants.
Believe that regardless of how they came to the U.S., illegal immigrants deserve:
- U.S. government financial aid for college tuition.
- visas for spouse/children to come to the U.S. Families shouldn’t be separated.
Illegal immigrants do the jobs that Americans do not want to do.
Religion
The phrase “separation of church and state” is not in the Constitution. The First Amendment to the Constitution states “Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof…” This prevents the government from establishing a national church. However, it does not prevent God from being acknowledged in schools and government buildings.
Oppose the removal of symbols of Christian heritage from public and government spaces.
Government should not interfere with religion and religious freedom.
Support the separation of church and state. Religious expression has no place in government.
Support the removal of all references to God in public and government spaces.
Religion should not interfere with government.
Same-sex marriage
Marriage is between one man and one woman.
Opinions differ on support for the creation of a constitutional amendment establishing marriage as the union of one man and one woman.
Believe that requiring citizens to sanction same-sex relationships violates moral and religious beliefs of millions of Christians, Jews, Muslims and others who believe marriage is the union of a man and a woman.
Marriage should be legal for gay, lesbian, bisexual and transgender couples to ensure equal rights for all.
All individuals, regardless of their sex, have the right to marry.
Believe that prohibiting same-sex citizens from marrying denies them of their civil rights. Opinions differ on whether this issue is equal to civil rights for African Americans.
Social Security
The current Social Security system is in serious financial trouble. Changes are necessary because the U.S. will be unable to maintain the current system it in the future. Support proposal to allow a portion of Social Security dollars withheld to be put into an account chosen by the individual, not the government.
Generally oppose change to the current Social Security system. Opinions vary on whether the current system is in financial trouble. Changing the current system will cause people to lose their Social Security benefits.
Support a cap on Social Security payments to the wealthy.
Taxes
Support lower taxes and a smaller government. Lower taxes create more incentive for people to work, save, invest, and engage in entrepreneurial endeavors. Money is best spent by those who earn it.
Support higher taxes and a larger government. High taxes enable the government to do good and create jobs. We need high taxes for social welfare programs, to provide for the poor. We can’t afford to cut taxes.
United Nations (UN)
The UN has repeatedly failed in its essential mission: to preserve world peace. The wars, genocide and human rights abuses of the majority of its member states (and the UN’s failure to stop them) prove this point. History shows that the United States, not the UN, is the global force for spreading freedom, prosperity, tolerance and peace. The U.S. should never subvert its national interests to those of the UN.
The United States has a moral and a legal obligation to support the United Nations (UN). The UN can be effective in promoting peace and human rights. The U.S. should not have acted in Iraq without UN approval. The U.S. should submit its national interests to the greater good (as defined by the UN).
War in Iraq
This was a preemptive strike to protect the U.S. All intelligence indicated that Saddam Hussein possessed and used weapons of mass destruction (WMDs) in the past and was prepared to use them again. He would not allow United Nations weapons inspectors to confirm his claim that he had destroyed his WMDs.
A democracy can succeed in Iraq if the people are given the opportunity to create one. All people want to live in freedom.
This is Bush’s war for oil. Saddam Hussein was no real threat. We have not found weapons of mass destruction (WMDs), so Saddam did not have any. President Bush lied about WMDs and the dangers posed by Saddam. We should have given the UN more time. We have alienated the rest of the world by our unilateral action (‘go it alone’ attitude).
A democracy can’t succeed in Iraq. Not everyone wants to live in a democracy.
War on terror/terrorism
The world toward which the Militant Islamists strive cannot peacefully co-exist with the Western world. In the last decade, Militant Islamists have repeatedly attacked Americans and American interests here and abroad. The terrorists must be stopped and destroyed.
9/11 was caused by America’s arrogant foreign policy. America needs to stop angering other countries. The threat posed by terrorism is exaggerated by President Bush for his own political advantage.
Welfare
Oppose long-term welfare. We need to provide opportunities to make it possible for poor and low-income workers to become self-reliant. It is far more compassionate and effective to encourage a person to become self-reliant, rather than keeping them dependent on the government for money.
Support welfare. We need welfare to provide for the poor. Conservatives oppose welfare because they are not compassionate toward the poor. We have welfare to bring fairness to American economic life. Without welfare, life below the poverty line would be intolerable.
“You’ve heard about the controversies within the bill, the process about the bill, one or the other. But I don’t know if you have heard that it is legislation for the future . … We have to pass the bill so that you can find out what is in it, away from the fog of controversy.” — Speaker of the House Nancy Pelosi, March 9, 2010
Pity the Democrats. They just can’t get their message out. Not with a charismatic president (who has delivered 52 speeches on the subject), control of both houses of Congress, the gooey enthusiasm of 90 percent of the press, and more than a year of ceaseless agitation. Their efforts have been thwarted, so they imagine, by “misinformation,” “distortion” and the “special interests.” So influential are these dark forces that the leadership cannot shout over them. Speaker Pelosi must pass the grossly unpopular bill in order to get the peace and quiet she needs to explain its virtues.
In fact, on the most important variable about this legislation — cost — Americans see through the optimistic projections. Asked by Rasmussen whether the health care plan will cost more than currently estimated, 81 percent of voters said yes and 66 percent said it was “very likely” to exceed projections. Doubtless the Democrats can explain that Americans believe this only because they’ve been duped by lies and clever ad campaigns, not because 60 years of recent history demonstrate conclusively that government programs, particularly open-ended entitlements, nearly always exceed projected costs. In 1966, Medicare cost taxpayers $3 billion. The House Ways and Means Committee estimated that by 1990, we might be spending as much as $12 billion. The actual 1990 figure? $107 billion. In 1987, Congress estimated that the Medicaid DSH (disproportionate share hospital) costs would be less than $1 billion in 1992. The actual cost? $17 billion.
But since Pelosi is so eager for us to know the details, let’s indulge her. Among the specifications of the House bill that passed last November are several sections that mandate racial and ethnic quotas for medical schools and other federal contractors. As Allan Favish reported in The American Thinker, the bill specifies that the secretary of Health and Human Services, “In awarding grants or contracts under this section … shall give preference to entities that have a demonstrated record of … training individuals who are from underrepresented minority groups or disadvantaged backgrounds.”
This, along with other provisions, is broad enough to cover every medical, nursing, dental school and teaching hospital in the country and guarantees the institutionalization of racial, sex, and ethnic quotas in perpetuity (though the use of the word “underrepresented” before “minority” ensures that the quotas will not apply to Asians or Jews).
The rationale for quotas, insofar as there is one, is that African-Americans and Hispanics have, on average, poorer health than other groups. Liberals assume that these disparities are the result of discrimination or lack of access to health care rather than other factors like poverty, eating habits, heredity, and fitness. If medical and dental schools are required to admit more minority applicants, newly minted minority professionals will tend to those “underserved” populations.
Of course, medical and dental schools have been practicing affirmative action for decades, but they’ve had trouble recruiting large numbers of minorities. Part of the problem is that African-Americans do not tend to gravitate to math and science (the solution to which is to be found in families and schools). Still, for the past few decades, less-qualified minorities have been offered spots in medical schools, with the result that: 1) Those minority professionals who would have qualified without affirmative action bear a stigma, and 2) less-qualified minorities fail licensing exams at much higher rates than their classmates. Is it a service to the African-American or Hispanic communities to provide physicians and dentists who are less capable than others? Will it improve health outcomes to be treated by less-qualified professionals?
President Obama asked this week whether anyone could oppose “holding insurance companies accountable,” and “bringing down costs for everyone.” Funny, he doesn’t ask whether we object to this: a provision on “maintaining, collecting and presenting federal data on race and ethnicity,” in order to “facilitate and coordinate identification and monitoring … of health disparities to inform program and policy efforts to reduce such disparities.” That’s an engraved invitation to social engineering.
But then, even to mention it is probably contributing to the “fog of controversy.”
LibertyPen—November 01, 2009 — Economics professors Walter E Williams and Thomas Sowell discuss what citizens can expect from government-run health care. http://www.libertypen.com
Talking Points Memo reported that Senator Harry Reid spoke earlier today to a group of “progressive” reporters, pundits, and bloggers in which he blamed Republicans for obstructionism – apparently ignoring that until recently, Democrats had a 60-vote supermajority in the Senate. Reid then announced that he would be moving forward with “filibuster reform” legislation.
In fact, according to TPM, Reid even claimed that GOP “obstructionism” was to blame for his much-maligned decision to yank – and ultimately scale-down – a bipartisan jobs bill last month. GOP obstructionism? Here’s what actually happened last month, as reported by Politico:
Senate Majority Leader Harry Reid led colleagues and the White House to believe he supported a bipartisan jobs bill — only to scuttle the plan as soon as it was released Thursday over concerns it could be used to batter Democratic incumbents, according to Senate sources. Senate Finance Committee Chairman Max Baucus (D-Mont.) and Sen. Charles Grassley (R-Iowa) worked for weeks with Reid’s blessing and frequent involvement to craft an $85 billion jobs bill, a measure that seemed destined to break the partisan logjam that has ground the Senate to a halt. But as Baucus, Grassley and President Barack Obama were preparing to celebrate a rare moment of bipartisan Kumbaya on Thursday, Reid stunned a meeting of Senate Democrats by announcing he was scrapping Baucus-Grassley, replacing it with a much cheaper, more narrowly crafted, $15 billion version. (Lisa Lerer & Glen Thrush, Reid’s About-Face Stuns Dems, White House, Politico, 02/11/10)
But that wasn’t even the most egregious aspect of Reid’s remarks today. In announcing that he will move forward with filibuster reform legislation, voters are reminded that Reid has made countless statements over the years defending the use and importance of the filibuster. Reid went so far as to declare in his own book, The Good Fight, that “without robust debate, the Senate is crippled.” And while the Democrats were in the minority in 2005, Reid also said on the Senate floor that “the filibuster is an important check on executive power and part of every Senator’s right to free speech in the United States Senate.”
So what’s changed Senator Reid, other than the fact that Democrats are now in the Majority?
The signs are all around us. Even as Barack Obama and the Democrats lower their heads and prepare to bulldoze a huge new entitlement through Congress, the results of profligate government spending are everywhere apparent. It requires a prodigious degree of ideological blindness to miss this.
In Greece, decades of lavish spending on public employees and social programs have led to national bankruptcy. Greece’s budget deficit last year was 12.7 percent of GDP. Want to know what an economic dead end looks like? It looks like this: A socialist government is forced to try to adopt austerity measures on an infantilized citizenry gone soft and dependent. Public employees respond with strikes and violence. “Tax collectors began a two-day walkout,” reports the Sydney Morning Herald, “court employees launched a week-long series of work stoppages and garbage collectors also mobilized against state spending cuts that are meant to save 4.8 billion euros (6.5 billion US dollars).” These smaller walkouts fall between last week’s general strike and the general strike called for Thursday.
In related news, thousands of students and faculty took to the streets to protest cutbacks and tuition increases at the lavishly funded University of California at Berkeley. Arrests were made after about 200 students rioted, vandalizing a university building and lighting trashcans on fire. An ethnic studies professor at San Francisco State lamented the violence, explaining that it “casts a shadow on the majority of our students who are working constructively toward budget justice.”
No doubt many New Jerseyans also think of themselves as crusaders for justice. But last month, newly elected Gov. Chris Christie delivered a frank assessment of the need for budget continence: “There’s no time left. We have no room left to borrow. We have no room left to tax.” New Jersey, he warned, is “on the verge of bankruptcy.” New Jersey faces a $68.9 billion long-term liability for retiree health care and other benefits, one of the steepest obligations of any state, but has not set aside the funds to cover it. The recession played a role in bringing New Jersey’s woes to a head. But part of competent government is planning for contingencies. Consider what even the liberal Newark Star-Ledger acknowledged:
“We have the highest-paid police officers in the country, and they can retire after 25 years at 65 percent of their highest salary. We have the nation’s highest-paid firefighters, too. Salaries for our teachers are always at the top of the nation, or close to it. And most pay nothing for red-carpet health benefits for life.
“This year, in the middle of a punishing recession — when more than 10 percent of New Jerseyans are out of work, when others are having their pay and hours cut, when many are losing homes to foreclosure — teachers’ average base salaries rose by nearly 5 percent, double the rate of inflation.”
Unlike most private sector employees, New Jersey police officers can cash in on unused sick days. A retiring New Brunswick officer received $376,234 for unused sick days, on top of his annual $115,000 pension. It’s a common pattern. New Jersey has run itself into a ditch, led by liberal Democratic office holders and their public union backers/beneficiaries.
New Jersey is one of the worst offenders (along with California, Florida, Michigan, and a few more), but nearly all states are facing a shortfall. The Pew Center on the States found a $1 trillion gap at the end of fiscal year 2008 between the $2.35 trillion states had set aside to pay for employees’ retirement benefits and the $3.35 trillion price tag of those promises. “While the economic crisis and drop in investments helped create it,” explained Susan Urahn, the study’s director, “the trillion dollar gap is primarily the result of states’ inability to save for the future and manage the costs of their public sector retirement benefits.”
At the federal level, the government has undertaken promises in the form of Social Security and Medicare that amount to $107 trillion in 2009 dollars. And while the future obligations under Medicare get plenty of ink, the costs of the Medicaid program (which, due to elastic eligibility standards, winds up providing nursing home care for many middle-class elderly people in addition to the poor) may eventually dwarf its sister programs.
Last week, the Congressional Budget Office projected that if President Obama’s budget is adopted (without the health care bill), the national debt will grow by $9.7 trillion over the next decade. And what we need, at this critical juncture, the Obama administration insists, is a huge new entitlement.
Abraham Lincoln once asked an audience how many legs a dog has, if you called the tail a leg? When the audience said “five,” Lincoln corrected them, saying that the answer was four. “The fact that you call a tail a leg does not make it a leg.”
That same principle applies today. The fact that politicians call something a “stimulus” does not make it a stimulus. The fact that they call something a “jobs bill” does not mean there will be more jobs.
What have been the actual consequences of all the hundreds of billions of dollars that the government has spent? The idea behind the spending is that it will cause investors to invest, lenders to lend and employers to employ.
That was called “pump priming.” To get a pump going, people put a little water into it, so that the pump will start pumping out a lot of water. In other words, government money alone was never supposed to restore the economy by itself. It was supposed to get the private sector spending, lending, investing and employing.
The question is: Is that what has actually happened?
The stimulus spending started back in 2008, during the Bush administration, and has continued under the Obama administration, so it has had plenty of time to show what it can do.
After the Bush administration’s stimulus spending in 2008, business spending on equipment and software fell– not rose– by 28 percent. Spending on durable goods fell 22 percent.
What about the banks? Four months after the Trouble Asset Relief Program (TARP) poured billions of dollars into the banks, the biggest recipients of that money made 23 percent fewer loans than before. A year later, the credit extended by American banks as a whole was down– not up– by more than $20 billion.
Spending in general was down. The velocity of circulation of money fell faster than it had in half a century.
Just two weeks ago, the Wall Street Journal reported, “U.S. banks posted last year their sharpest decline in lending since 1942.” You can call it a stimulus, if you want to, just as you can call a tail a leg. But the actual effect of what is called a “stimulus” has been more like that of a sedative. Continued…
For those of us who place more trust in free markets than state-directed economies, we must inevitably (and repeatedly) confront the skeptical interlocutor who details the “successes” of Swedish social democracy. “If state intervention into the economy is so bad, high taxes so destructive, then why is Sweden such a success?” It’s an irritatingly simple question with a incredibly complicated answer, though I do recommend pointing out, when the conversation turns to health care and secondary education, that nothing, in a state the confiscates a massive portion of your income, is “free.” But as many have pointed out, during its boom years, Sweden was a pretty free market place; from the 1970s through the 1990s—when taxes and regulation dramatically increased—the economy slowed until it spun out in the early 1990s.
There isn’t enough time in the day to respond to the ceaseless stream of Sweden hagiographers, though I took a crack at it a few years back, when a liberal blogger at The American Prospect, in an error-laden piece of Google scholarship, told readers that “everything they knew about Sweden was wrong.” But this video, while certainly not Avatar-like in its production values (and with an unfortunate reference to peeing one’s pants), does a pretty good job explaining the country’s free market past and the reforms enacted in the past few decades.
My favorite Sweden-know-it-all, incidentally, is lefty blogger Matthew Yglesias, who never misses an opportunity to correct American “misconceptions” about the land of Ace of Base and early retirement (you see, he went on a junket to Stockholm last year). “Americans often find this a bit confusing but Scandinavia,” he recently wrote, “strictly speaking, only refers to Denmark, Sweden, and Norway.” Or this classic bit of pompous pedantry, correcting the Swedish Foreign Minister Carl Bildt on whether, when he served as prime minister, he was technically the “head of state”: “I don’t necessarily expect Americans to grasp the distinction, since our President is both head of state and head of government, but Sweden’s prime minister is not a head of state.”
Elsewhere, Yglesias claims that former conservative party leader Bo Lundgren is the “architect” of the Swedish model. As Lundgren, author of the 1989 book Sänk skatten för alla (Lower Taxes for All), recently explained to the Telegraph, ”I am a market liberal. I was even called the nearest Sweden had every (sic) come to having a party one could call libertarian.” Picayune details, I suppose.
But the nitpicky often segues into the bizarre generalization: ”My bottom line: Visit the Nordic countries and you’ll be impressed that their civilian public agencies are much more effective than ours.” Well. How one determines that Sweden’s “civilian public agencies” are better functioning than those in the United States during a few days in Stockholm (Did he try to post a letter? Start a business?), is left unsaid. But I have dealt with all manner of public agencies in Sweden and the results were, at best, mixed (try changing doctors in Stockholm).
So here is my bottom line: When some American pundit, with expertise is everything, explains why some European welfare state “works,” or how everything you know is wrong about taxing income at 75 percent, do a little digging, make use of Google Translate, and don’t trust that, because Swedes and Danes tell researchers that they are happy, the United States should introduce “daddy leave” and provide subsidies to syndicalist newspapers.
The best English-language explication of the Swedish model comes from my pal Johan Norberg, who wrote this brilliant piece for The National Interest a few years back. And watch my interview with Norberg on Swedish welfare politics here and on Naomi Klein here.