The Real Deflate-gate: The Depressed State of Our UnionMelanie Sturm | @ThinkAgainUSA Read Comments - 14Publish Date:
Thu, 01/29/2015
Aired-out uproariously on Saturday Night Live, “Deflate-gate” has been a national fixation since word broke that the New England Patriots used under-inflated footballs in their Super bowl birth-clinching victory over Indianapolis. The alleged cheating controversy has even pumped up the lovability of the oft-despised Seattle Seahawks.
However, Think Again if you believe Deflate-gate is merely hot air. Though overblown, Americans’ disquiet reflects our fairness instinct and commitment to equality of opportunity – the ideal that all competitors in the race of life, no matter their status, can succeed on a level playing field.
Sensing a slanted NFL field, Seahawk Richard Sherman questioned the close relationship between NFL commissioner Roger Goodell and Patriot owner Robert Kraft, calling it a “conflict of interest.”
Sherman’s unease resonates in an America increasingly distrustful of society’s umpires. President Obama spoke to this anxiety in last week’s State of the Union address. “This country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules,” he declared, labeling this “middle-class economics.”
Yet the story of our five-year-old recovery is how poorly working Americans have fared. With workforce participation at forty-year lows, “America’s wealth gap between middle-income and upper-income families is the widest on record,” Pew Research recently reported. From 2010 to 2013, household incomes fell for all except the most affluent 10 percent, a 2014 Federal Reserve survey revealed, with the bottom 40 percent suffering disproportionately.
So while Wall Street, Silicon Valley and Washington boom, the rest of America suffers crisis levels of job insecurity, economic immobility and government dependency, with a record 50 million living in poverty.
That’s because our economy’s playing field is askew, warped by a cronyist system -- long in the making -- that is neither “middle-class economics” nor Thomas Jefferson’s ideal: “a wise and frugal government, which shall restrain men from injuring one another, which shall leave them otherwise free to regulate their own pursuits of industry and improvement.”
Free to pursue their individual life objectives, American entrepreneurs -- and immigrants fleeing societies where one’s start pre-determined one’s end -- transformed an agrarian backwater into human history’s greatest economic wonder. Between 1800 and 2007, economic well-being (real GDP per-capita) increased 32-fold in America compared to 14-times in Great Britain and 5-times in India.
It’s not a miracle; it’s the free market where rivals meet in open competition, generating a continuous stream of innovation, choice and value. In return for pleasing customers and being good corporate citizens, entrepreneurs earn profits.
As government has grown, so have its anti-competitive powers, corrupting the free market with corporate cronyism -- the incestuous relationship between Big Government and Big Business that rewards political connections over competitive excellence.
Our tax code is a cronyist masterpiece, allowing well-connected individuals and big companies like GE to lobby for, win and exploit tax breaks, rendering their tax bills negligible and affording lawmakers unending contributions.
Equally distortive are corporate welfare programs sold as economic saviors -- the 2009 stimulus, cash-for-clunkers, farm bill, bailouts, Export-Import Bank loan guarantees and Dodd-Frank “Wall Street reform.” Each benefits well-connected private companies, forcing Americans who “work hard and play by the rules” to subsidize elites who don’t.
Then there’s cronyism’s granddaddy, Obamacare, “the product of an orgy of lobbying and backroom deals,” according to Steven Brill, whose new book “America’s Bitter Pill” details how the $3-trillion-a-year health industry’s largest stakeholders – drug and medical device companies, hospitals, insurers – profited, at taxpayers’ expense.
When profits accrue to those with the most to invest in politics -- and the most to lose in the free market -- wealth and opportunity shift from ordinary people to the government and its friends. That’s why Americans struggling to maintain living standards must contend with ever-increasing prices in government-controlled sectors -- housing, health, and education.
Most worrisome, the small business sector, which generates two-thirds of new jobs, is languishing. Unable to grow in a market that protects large corporations from competition, and disproportionately burdened by an explosion of regulatory red tape, small business deaths now exceed business births for the first time in the Brookings Institution’s thirty-plus-year history of data collection.
So who are the greedy Gordon Gekko’s? Those who prudently risk hard-earned money to continuously deliver life-enhancing benefits – iPhones, 3-D printers, medicines, refrigerators – or cronies who relegate competitors, consumers, employees, and investors to the sidelines of a rigged game?
To protect our freedom and broadly share prosperity, shouldn’t we disperse power away from economic leeches, returning it to economic producers whose raison d'être is the fulfillment of needs and desires?
Think Again – It’s human nature to want competitive advantages -- whether tax breaks or deflated footballs. That’s why a free society needs referees with only enough power to assure fair competition, not so much that they become self-interested players in the game.
It's Right Versus Wrong, Not Left Versus RightMelanie Sturm | @ThinkAgainUSA Read Comments - 14Publish Date:
Thu, 07/03/2014
Imagine a 4th of July tradition like Hollywood’s where each year the Oscars pay homage to fallen stars. Liberty-loving Americans would fete public servants who’ve honored Thomas Jefferson’s rule to “leave no authority existing not responsible to the people.”
Might celebrating trustworthy stewards inspire Americans to Think Again about our founders’ insights, ingraining a culture that prizes democratic accountability and lawful government, the one that transformed our risky political experiment into history’s freest and most prosperous society?
We’d be celebrating two recently passed stalwarts who put country and constitutional order before party: Senator Howard Baker, the Senate Watergate Committee’s ranking Republican who famously asked “what did the President know and when did he know it,” and Johnnie Walters, President Nixon’s IRS commissioner, who refused to target his “enemies list.”
Like our Founders, Baker and Walters understood that where equality under the law goes, so goes freedom. Therefore, the greatest threat to civil society and human potential is a powerful, deceitful and unaccountable government where the few rule the many.
That’s why the Founders designed a liberty-preserving system that fragmented and checked government power among equal, competing branches, conferring ultimate authority upon the people -- not our representatives.
Respectful of Jefferson’s rule, unlike many in today’s “Ruling Elite,” it’s doubtful Baker or Walters would stomach the IRS targeting Americans for their political beliefs, or the evaporation of email evidence critical to congress’ investigation -- called “a conspiracy theory” by the White House.
Journalistic sleuths Woodward and Bernstein know that government accountability derives from an active media and an informed citizenry. In comparing the IRS and Benghazi scandals to Watergate, they criticized the media for abandoning its constitutionally protected watchdog role, appearing instead to protect the government from Americans.
Public servants may arrive eager to drain Washington’s cesspool, but after harnessing governmental power and dispensing money and favors, they discover it’s a hot tub made inviting by politicians, bureaucrats, public-sector unions, lobbyists, donors, and the media.
Our greatest challenge -- and the biggest threat to the world’s oldest (and shortest) constitution -- isn’t a left versus right tug-of-war, but a struggle to wrest power away from those who collude at the citizens’ expense.
Incentivized to invest in influence instead of innovation, Big Business (currently enjoying record profits) can buy access to trillions in spending, tax and regulatory favors. The result is a heavily indebted citizenry and a stagnant economy warped by cronyism, as evidenced by the 2.9 percent plunge in first-quarter U.S. GDP -- the worst non-recession contraction in over 40 years.
Not surprisingly, the small business sector that accounts for two-thirds of net new job creation is suffering as “business deaths now exceed business births for the first time in the thirty-plus-year history of our data,” according to a new Brookings Institution report on declining business dynamism.
While Wall Street and Washington boom, the rest of America suffers crisis levels of income stagnation, underemployment, economic immobility and government dependency, with a record 50 million living in poverty.
Yet as the American Dream slips beyond reach for ordinary citizens, those who oppose the Ruling Elite are labeled extremists, proving George Orwell’s adage that “In a time of universal deceit, telling the truth will be a revolutionary act.”
Consider last month’s Mississippi Senate run-off that spoilsman Thad Cochran narrowly won, thanks to crony donations and promises to keep the gravy train running, unlike his “extremist” opponent.
But who are the extremists? Those who advocate free markets, equality under the law, fiscal responsibility, constitutional adherence, in God we trust, and peace through strength – the campaign platform of David Brat, Majority Leader Eric Cantor’s vanquisher – or the Ruling Elite who subvert these guiding principles?
Though distressed Americans clamor for law, order and security on our southern border, slack immigration-law enforcement has accelerated unlawful migration. Exacerbating the lawlessness are lawmakers like Nancy Pelosi who called the deluge of illegal immigrants an “opportunity.”
Unfortunately, the opportunity is at the expense of working Americans, considering all employment growth since 2000 went to immigrants (legal and illegal), the Center for Immigration Studies reported.
Meanwhile, with Congress requiring border security prior to any amnesty, President Obama intends to act alone, as he did in 2012 when he indefinitely suspended deportations of 550,000 alien youths, granting them work permits.
Commenting on Obama’s intentions following his twelfth unanimous Supreme Court rebuke for federal power over-reach, constitutional law professor and Obama-voter Jonathan Turley explained, the President “can’t say the solution to gridlock is you simply have to resolve it on my terms.”
Having overthrown King George’s unfair and arbitrary rule, our Founders established an America of, by, and for the people – not Ruling Elites -- stipulating that presidents “shall take care that the laws be faithfully executed.”
Think Again – wouldn’t a shared allegiance to our constitutional order be the best way to realize a more perfect union, for “ourselves and our posterity?”
Tyranny of BureaucracyMelanie Sturm | @ThinkAgainUSA Read Comments - 11Publish Date:
Thu, 06/06/2013
In his 1980s comedy routine, Yakov Smirnoff celebrated America’s free society and equality before the law, joking: “In America you can always find a party. In Russia, Party always finds you! In America, you break law. In Soviet Russia, law breaks you!"
In the wake of scandals involving the abuse of governmental power, Americans must Think Again about Smirnoff’s ironic word plays. As we’re learning, the ruling Party can find and break you – despite constitutional protections.
Today, our federal government is the nation’s largest spender, debtor, lender, employer, contractor, property owner, insurer, healthcare provider, and pension guarantor. What it doesn’t directly control, its unchecked bureaucracy can ban or mandate. Moreover, the Justice Department’s wiretapping of journalists and the demotion of Benghazi whistleblower Gregory Hicks at the State Department have impeded the watchdog media’s ability to assure a free flow of information between the people and our government. Even New York Times reporters aren’t getting calls returned.
Meanwhile, large swaths of America are in no mood to party -- especially the Tea Party -- after getting trapped in the government’s dragnet and subjected to personally invasive, banana republic-like scrutiny. Along with other conservative, pro-Israel and religious groups, their First Amendment rights -- freedoms of association, speech and religion -- were systematically abridged by the most feared agency of the government, the IRS.
After unfairly applying tax-exempt laws and divulging personal files to media site ProPublica, Americans worry the IRS can’t be trusted to impartially and confidentially administer 47 new healthcare provisions and 18 new taxes. Mistrust spiked after learning the IRS’s Obamacare office is led by the same manager who oversaw and ignored abuse in the tax-exempt entities office. Adding fiscal insult to political injury, revelations about the IRS’s lavish spending culture – especially its $4 million employee boondoggle – prompted Jay Leno to suggest we close the IRS, not Gitmo.
Though government officials acknowledge the IRS’s “inexcusable” and “inconsistent” application of the law -- and notwithstanding their apologies for the “unprecedented” abuse of power -- many Americans are gleeful that political groups with which they disagree were muffled, as video-blogger Caleb Bonham discovered when inviting students in Boulder, Colorado to sign his gigantic thank you card to the IRS. Ironically, students in Bonham’s viral video cheerfully endorsed the harassment and intimidation of fellow citizens, unmindful that coercive government could one day crash their party.
Quick to call limited-government types devils incarnate, and inspired by politicians for whom there can be no honest difference of opinion, hyper-partisans are willing to commit fellow countrymen to an administrative Star Chamber, simply because they identify with different values. But nothing is more destructive to our social fabric and antithetical to America’s founding principles than the abuse of federal power to stifle dissident opinion, as Smirnoff knows and our founders feared. That’s why our founders devised a system to protect the very liberties that are currently under assault.
Defending limited government and our system of checks and balances, James Madison penned this famous argument: “What is government itself, but the greatest of all reflections on human nature? If men were angels, no government would be necessary. If angels were to govern men ... controls on government would (not) be necessary. In framing a government, ... you must first enable the government to control the governed; and in the next place oblige it to control itself."
Clearly, our government is out-of-control, as recent revelations of government over-reach, excess and incompetence testify. The federal bureaucracy has morphed into a government of special interests, by the bureaucrats, and for the political class. Occupy Wall Street meets the Tea Party at the intersection of their contempt for a government that routinely presses its massive thumb on the scale of justice, picks winners and losers, and gives sweetheart deals to well-connected cronies.
As law professor Jonathan Turley described in an eye-opening Washington Post op-ed, the administrative state has grown so powerful and independent, it constitutes a fourth branch of government whose impact on citizens’ lives is larger than the other three branches combined. Composed of 15 departments, 452 agencies, and 2.8 million unelected and inaccessible bureaucrats, it’s less transparent and more unaccountable than other branches. “We cannot long protect liberty,” Turley concludes, “if our leaders continue to act like mere bystanders to the work of government.”
This fourth branch is our founders’ nightmare, and an assault on their constitutional principles: government by consent, separation of powers and equal rights of individuals. To preserve the system that is the source of our flourishing and the bedrock of our culture, we’ll need “a new birth of freedom,” as Abraham Lincoln yearned, so that “government of the people, by the people, for the people, shall not perish from the earth.”
Think Again. We wouldn’t want to be like the USSR where, Smirnoff says, comedians could crack jokes about leaders -- but only once.
Buffett Rule: Tax Fairness or Farce?Melanie Sturm | @ThinkAgainUSA Read Comments - 5Publish Date:
Thu, 03/01/2012
“The higher up in the tree the monkey goes, the more of his backside that shows,” goes the maxim. It would be hard to climb higher than Warren Buffett, the world's most celebrated investor. However, as the namesake of the Buffett Rule that imposes higher tax rates on the wealthy, Buffett and his backside dangle precariously “out on a limb.” Class warfare divisive and un-AmericanMelanie Sturm | @ThinkAgainUSA Read Comments - 0Publish Date:
Thu, 08/04/2011
In a Russian joke, there are two friendly farmers, Boris and Ivan. Both are prosperous, though Boris owns chickens and Ivan doesn't. When a genie offers Ivan anything he desires, he ponders his wish and orders, “Kill Boris' chickens!” Wall Street protestors: blame cronyism, not capitalismMelanie Sturm | @ThinkAgainUSA Read Comments - 1Publish Date:
Thu, 10/13/2011
I didn't “Occupy” Wall Street, though I spent enough hours working there that a sleeping bag could have come in handy. I can attest to one of the protesters' claims about Wall Street bankers: While most are good and ethical people, they are supremely money-oriented, and, like the bear that sniffed out a Payday in my trash, they'll take the path of least resistance to find theirs. America’s Tebows await their startMelanie Sturm | @ThinkAgainUSA Read Comments - 1Publish Date:
Tue, 12/13/2011
Back in September when President Obama was arguing for his third stimulus, he pronounced America soft and said we lacked a competitive edge. At the same time, the NFL cognoscenti were declaring Tim Tebow an NFL bust despite being a first-round draft pick. Remarkably, Tim Tebow and the U.S. economy are showing signs of resurgence.
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