Melanie Sturm | @ThinkAgainUSA
Last week political, media and celebrity worlds converged to produce headlines worthy of “News of the Weird.” Sean Penn eulogized anti-American strongman Hugo Chavez as “a friend [America] never knew it had,” while Dennis Rodman declared North Korean dictator Kim Jong Un “an awesome guy.” Upon returning from the starving gulag-state, Rodman scored a coveted Sunday interview with George Stephanopoulos and CNN declared him a “diplomatic triumph.”
But perhaps the most captivating cause célèbre -- likely to transform advocates into media and campus darlings -- is the crusade to halt the drilling innovation called hydraulic fracturing (“fracking”). However, if you expect those aspiring to star in the next “China Syndrome” to possess more scruples than Rodman or Penn, Think Again. Though fracking has opened up vast reserves of clean, cheap, and reliable natural gas in shale-rock deep underground, making America the world’s largest natural gas producer, it’s a bête noire to enviro-stars like Matt Damon.
In his new movie “Promised Land,” Damon doubled down on alarming claims made in Josh Fox’s Oscar-nominated documentary “Gasland,” even copying the signature scene of a man lighting tap water on fire. Wanting another environmental blockbuster like “The China Syndrome” -- whose release days before Three Mile Island’s near meltdown devastated the nuclear power industry -- Damon aimed to stoke natural gas fears. However, not only has mass hysteria not materialized, his film is a box-office and financial bust for investors, including oil-rich United Arab Emirates.
Damon’s conceit derives from the frenzy generated by “Gasland’s” Fox, who claims fracking causes “toxic streams, ruined aquifers, dying livestock, shocking illnesses and tap water that bursts into flames.” Media jumped on the anti-natural gas bandwagon, including the New York Times, prompting its ombudsman to twice rebuke Times’ editors and staff for biased reporting and questionable ethics.
Meanwhile, aware that “natural” gas occurs naturally in water where there’s methane-rich soil (like Burning Springs, New York) and of stories about George Washington lighting water on fire, former Financial Times reporter Phelim McAleer started an 18-month investigation to uncover the truth about fracking and “Gasland’s” startling allegations.
His just released documentary ”Fracknation” was financed on-line with donations averaging $64 and has won plaudits for exposing enviro-hucksters while championing their victims: Variety called it “a well-reasoned film…. [that] makes a good case against Fox’s movie,” and the New York Times said it’s “no tossed-off, pro-business pamphlet” but “methodically researched and assembled.”
Its pivotal scene is of McAleer questioning Fox at a 2011 screening of “Gasland” about his famous flaming faucets. “Isn’t it true,” McAleer asks, “there’s reports, decades before fracking started, that there was methane in the water there?” Aware of these scientific studies, and galled by the question’s ethical implications, Fox declares contradictory evidence “not relevant,” as if documentarians enjoy the same dramatic license as fictional filmmakers.
But if facts and scientific proof aren’t relevant, what is? Are Fox and Damon intent on reverse-engineering arguments from pre-ordained conclusions, or informing the public? As with all types of energy production, fracking involves legitimate risks; why not focus on assuring regulatory best practices?
The truth is technological innovations like fracking have spawned an energy boom, enabling both economic and environmental improvements including: the substitution of low-carbon gas for coal; cheaper energy (a rebate for the poor); cleaner air; new energy jobs; increased governmental revenues; greater energy independence; a drop in U.S. carbon-dioxide emissions to a 20-year low, outpacing Europe whose expensive renewable-energy strategies have underperformed; and improved energy efficiency -- it takes 50 percent less energy to produce one dollar of economic output than it did in 1980.
Anti-frackers should learn John Meynard Keynes' lesson: “When my information changes, I alter my conclusions.” What’s irrefutably relevant is that fracking has succeeded where renewable-energy subsidies, government stimulus, and climate treaties have failed, potentially enabling cheap American energy to eventually offset China’s cheap labor advantage.
These upside surprises come when entrepreneurial thinkers “dream things that never were and say ‘why not’,” as Robert Kennedy famously said. One dreamer, biologist Allan Savory, spoke at TED2013 of his odyssey to reverse global desertification, which degrades the land’s ability to absorb water and carbon causing famine, war and climate change. Savory described how he challenged his assumptions – ones that led him to mistakenly recommend killing 40,000 African elephants -- and centuries of conventional wisdom, deriving a counter-intuitive low-tech strategy to use grazing livestock to reclaim the land. At first he met bruising academic scorn, then astonishing and indisputable success.
Savory predicts his soil restoration strategy, if employed on half the available land, will enable enough carbon absorption to return to pre-industrial carbon-dioxide levels. Drawing a standing ovation he said, “I can think of almost nothing that offers more hope for our planet, for our children, for their children, and for all of humanity.”
Think Again – Aren’t the real celebrities innovators who solve seemingly intractable problems, not eco-stars who peddle fiction?
Melanie Sturm | @ThinkAgainUSA
During the Civil War when the union’s preservation and slavery’s abolition were in doubt, President Lincoln roused the nation with his dream “of a place and a time where America will once again be seen as the last best hope of earth.” In rekindling our Founders’ vision, Lincoln helped assure that America would become the freest and most prosperous nation on earth, a status successive US presidents have dutifully maintained, or they were cast aside by voters.
As Americans Think Again about President Obama, consider that no president has won re-election amid such economic stagnation, declining incomes, high gas prices and business pessimism. Living astonishingly beyond our means and more indebted than any other nation in world history, Americans face a reduced standard of living, diminished opportunities for our children, and a weakened capacity to secure our national interests in a menacing world.
After trillions in fiscal and monetary stimulus, the 39-month old economic recovery has one-seventh the GDP growth rate of the Reagan recovery in which double-digit inflation and interest rates were also slain. With 261,000 fewer jobs today than January 2009 (despite population growth of 9 million), exploding poverty, government dependency, and income inequality imperil Lincoln’s dream.
During the economic turmoil of 2008, Obama sounded Lincoln-esque, promising to “provide good jobs to the jobless…secure our nation and restore our image as the last best hope on Earth.” But unlike Presidents Kennedy, Reagan and Clinton who understood the benefits of economic growth policies – more and better jobs, larger paychecks, growing tax revenues without tax rate increases, and deficit and debt mitigation -- Obama doubled down on government-centric and budget-busting policies.
Having inherited a government moving in the wrong direction on bailouts, spending, deficits and debt accumulation, Obama floored the gas. Though critical of Bush’s $4 trillion in accumulated debt and vowing to halve the annual deficit by now, Obama has run four successive trillion-dollar deficits – each nearly triple Bush’s average -- while increasing debt nearly $6 trillion to a sum ($16.1 trillion) that exceeds the US economy. Historically, America’s economy has grown faster than its debt -- until Obama, under whom debt is growing $2.50 for every dollar of GDP growth.
With 10,000 baby boomers turning 65 every day, manditory expenditures for Medicare, Social Security and Medicaid are exploding, consuming more annually than the combined cost of the Iraq and Afghanistan wars and TARP bailouts. Rather than address the looming entitlement crisis, Obama’s budget projects massive deficits and $20 trillion in debt by the end of his second term. So fiscally irresponsible, not one member of Congress -- not even a single Democrat -- has voted to approve either of Obama’s last two annual budgets.
Meanwhile, with Democrats in complete control of Congress through January 2011, Obama’s signature legislative “reforms” – Obamacare and Dodd-Frank – ignored Republican solutions, and imposed thousands of complex regulations and new taxes on the private economy, nearly paralyzing job creation and economic growth.
Though sold as “Wall Street reform”, Dodd-Frank makes bailouts more likely by designating selected banks “too-big-to-fail” and failing to reform the financial crisis’ real culprits -- housing-finance giants Fannie Mae and Freddie Mac. With smaller banks competitively disadvantaged, lending is down, consumer prices are up, and expensive consultants, like the former chiefs-of-staff to both Dodd and Frank, are in demand.
Neither is Obamacare meeting its promises. Insurance premiums are up $2,500 and according to the Congressional Budget Office (CBO), Obamacare will cost nearly twice its original estimate, leave 30 million Americans uninsured, and cause 20 million people to lose their employer-provided health insurance. Additionally, it imposes 20 new taxes on families and small businesses and incentivizes employers to hire part-time instead of full-time workers.
Thanks to recent technological breakthroughs, America is now the most energy-endowed nation in the world. Allowing the responsible development of our resources would generate millions of jobs while turbo-charging the economy and revitalizing distressed communities. Yet despite promising an “all-of-the-above” energy policy while investing $90 billion in uncompetitive green energy companies, Obama blocked the Keystone XL pipeline and reduced drilling permits on public lands by 36 percent, compared to increases of 116 and 58 percent under Bush and Clinton, respectively.
Meanwhile, GDP growth slumped to 1.3 percent in the second quarter, but Obama proposes to increase tax rates on “millionaires and billionaires” (individuals and small businesses making over $250,000) to promote fairness, after opposing them in 2010 when the economy was growing at twice its current rate. But how can it be fair to implement a policy that the CBO considers economically injurious and would yield only enough revenue to fund 8.5 days of government spending? Given Obama’s track record, how could another four years of the same policies result in enough economic growth to overcome our economic challenges?
Mindful of these challenges and eager to diffuse the debt bomb while preserving entitlement programs for future generations, Governor Romney proposes to expand the private economy with spending, regulatory, tax and entitlement reforms reminiscent of those enacted by Kennedy, Reagan and Clinton – modern America’s most successful economic stewards. Romney proposes to cut tax rates by 20 percent for all Americans while maintaining the same share of taxes paid by the wealthy. But unlike Bush, he’ll pay for them by eliminating expensive loopholes only accessible to wealthy individuals and companies like GE.
Divided as we were during the Civil War, Americans long to be unified by a leader, like Lincoln, committed to expanding liberty and increasing individual opportunity -- the source of human flourishing and America’s promise.
Think Again – only by restoring these cultural bulwarks can we pass our children a strong America, and remain the last best hope of earth.
Melanie Sturm | @ThinkAgainUSA
Mark Twain famously remarked, “No man's life, liberty, or property are safe while the legislature is in session.” So when Massachusetts Senate candidate Elizabeth Warren proclaimed “the system is rigged” in her prime-time speech at the democratic convention -- Bill Clinton’s warm-up act – it appeared she agreed with Twain and 69 percent of Americans who believe “politicians break the rules to help people who give them money,” according to an August Rasmussen poll.
Before assuming Warren blames politicians for rigging the system, Think Again. In fact, as an advocate of an assertive and growing federal government run by benevolent and enlightened policymakers, Warren is out of sync with Mark Twain, public opinion, and America’s founders who feared a system rigged by powerful elites, like the British one they overturned.
When Thomas Jefferson asked if a “man cannot be trusted with the government of himself, can he then be trusted with the government of others,” he expressed our founders’ concern that future politicians would encroach on our newly declared natural rights and liberties, leading America into “debt, corruption and rottenness.” Hence, our founders designed a government with limited powers to serve -- not rule -- the people, and to protect our inalienable rights, not confer privileges to special interests.
Today, our founders’ worst nightmares are reality -- the system is indeed rigged. The government’s share of the economy has exploded to 25 percent, dampening the private sector as powerful politicians allow favored beneficiaries to feed at the federal trough. The negative returns from these policies Warren calls “investments” have pushed America down the “global competitiveness” rankings -- from number one in 2008 to number seven today -- according to the newly released World Economic Forum report that blames unsustainable debt, cronyism, regulation, and economic stagnation for the fall.
Politicians promised that “investments” like the 2009 Stimulus would revive our economy and reduce unemployment, yet $830 billion later we’re worse off. Even since the official start of the “recovery” in June 2009: economic growth is 40 percent of the historic average for post-recession rebounds; the percentage of Americans with a job is the lowest in decades and the real unemployment rate is 19 percent as four times more workers left the workforce last month than entered it; median household income is down sharply while food stamp usage and federal disability checks have skyrocketed; and poverty rates are near a 50-year high.
As she laments the suffering middle class, why doesn’t Warren evaluate whether the activist government policies she advocates actually underlie this despair? Shouldn’t she query why the president’s 2013 Federal Budget garnered no votes in Congress and why the Senate has failed for the fourth consecutive year to uphold it’s constitutional duty to pass a budget?
She'd find politicians fearful of endorsing a budget that borrows $1.3 trillion to fund the government, after paying for mandatory expenditures such as Social Security, Medicare, Medicaid and interest on the debt. But as federal debt spiked $5.4 trillion since January 2009, topping $16 trillion last week — a sum one-quarter of the combined gross domestic product of every country in the world — why isn't Warren proposing a plan to avert the looming fiscal crisis?
Unless reformed, Social Security and Medicare won’t exist for younger generations. Nevertheless, Warren ignores this tragedy preferring to wax eloquent about “a level playing field where everyone pays a fair share and everyone has a real shot”…. because “the economy doesn’t grow from the top down, but from the middle class out and the bottom up.” But how do we secure a middle class out of government jobs paid for with borrowed dollars? Does our undisciplined, indebted and special interest-oriented government subvert the private economy, undermining the middle class and those who aspire to it?
This is the argument of Senator Tom Coburn’s book “The Debt Bomb,” endorsed by Alan Simpson and Erskine Bowles on whose fiscal commission he served. Contrary to the narrative that blames lobbyists and gridlock, Coburn contends, “Congress has been an assembly line of new programs and a favor factory for special interests. Our economy is on the brink of collapse not because politicians can’t agree, but because they have agreed for decades…to borrow and spend far beyond our means… to create or expand nearly forty entitlement programs, carve out tax advantages for special interests, build bridges to nowhere and earmark tens of thousands of other pork projects.”
Anxious to prevent an economic calamity worse than 2008, Coburn urges Americans to drain Washington’s stagnant pond, refilling it with public servants committed to un-rigging the system that’s left millions of Americans “on their own,” deprived of jobs and hopes of finding one. Without a plan to solve our economic and fiscal woes, Warren is an accomplice to the rigged system she denounces.
Think Again Elizabeth Warren — telling the truth and taking responsibility distinguish great leaders from mere politicians.
Melanie Sturm | @ThinkAgainUSA
Last Saturday, as Americans debated whether Lance Armstrong was a genuine hero after dropping his fight with the US Anti-Doping Agency, another Armstrong – an undisputable American hero -- died. Were Webster’s to pair Neil Armstrong with hero in its dictionary, one needn’t Think Again to fathom the bravery, achievement, and nobility implied by the word.
By fulfilling President Kennedy’s audacious goal to have an American walk on the moon within the decade, Neil Armstrong is remembered for the skill, courage, grace under pressure, and innate humility necessary to achieve “one giant leap for mankind,” while crediting legions of dedicated others for the “one small step for man” he took on July 20, 1969. Upon fulfilling his mission, he didn’t spike the football or parlay fame into power or fortune. He receded into dignified private life to teach and inspire future generations.
In breaking the sad news, NBC’s Brian Williams asserted, “we have lost the last American hero,” as if surrendering America’s heroic destiny to our era’s chaos and controversy. Yet throughout our tumultuous history, Americans have proven “where there’s a will, there’s a way” -- starting with George Washington, who summoned heroism in his beleaguered troops by crossing the icy Delaware River enroute to American independence.
Though Thomas Jefferson warned “The natural progress of things is for liberty to yield, and government to gain ground,” our founders established “a government of the people, by the people, for the people,” knowing it was a precondition to a dynamic, prosperous and free society. We fought the Civil War so this American ideal wouldn’t perish from the earth. Now, with our faith in the American Dream rattled, we face another great challenge.
Today we suffer unprecedented levels of economic stagnation, long-term unemployment, and government dependency. Despite a record $830 billion stimulus enacted in February 2009, this recovery (which technically began in June 2009) is the weakest of the 11 tracked since World War II. Stimulus advocates promising the unemployment rate wouldn’t exceed 8 percent (though it has for 42 consecutive months), were also wrong in forecasting a 5.5 percent rate by now.
Even since the “recovery’s” start, economic trends have deteriorated: the ranks of the long-term unemployed grew by 800,000; those no longer in the labor force increased 8 million; and food stamp spending doubled to $85 billion. New York Times economics columnist Catherine Rampell reported that median household incomes declined more (4.8 percent) during the “recovery” -- even among the continuously employed -- than they fell (2.8 percent) during the preceding 18-month recession. Consequently, 85 percent of the much-discussed American middle class report that it’s now harder to maintain their standard of living, according to Pew Research.
Humorist PJ O’Rourke said, “giving money and power to government is like giving whiskey and car keys to teenage boys.” Refusing to relinquish their intoxicating power to spend and borrow, political leaders have subverted the national interest by causing four consecutive trillion-dollar deficits. With government spending at stratospheric levels, we charge $41,222 to our children’s credit card every second. At $16 trillion, our national debt is up 50 percent since January 2009, exceeding the size of our economy. When added to future Medicare and Social Security claims, it totals $136 trillion -- an incomprehensible, indefensible, and morally reprehensible sum.
Anyone who’s balanced a checkbook -- or watched events unfold in Europe -- understands that red ink turns to blood, particularly when interest rates rise above historic lows. So, how can we trust leaders who won’t see and aren’t planning to avert the fiscal black hole toward which we’re rocketing? Shouldn’t we urge courageous leaders to redirect our perilous trajectory toward a safe landing?
As the cliché goes, “if we can send a man to the moon,” we can restore America’s promise to secure a more stable and prosperous future. After instituting reforms to entitlement programs and its tax code, Canada achieved a remarkable economic turnaround, and so can we. It will require a Kennedy-esque leader to define the challenge as the fiscal equivalent of the moonshot, and to summon the political will for lift-off against fierce gravitational forces.
As a firm believer in Americans, Abraham Lincoln said, “If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts.” Eager for blast off is a nation of unassuming and reluctant heroes – ordinary Americans. Spoken to like adults, and with the facts in hand, we have the “right stuff” to enable another “giant leap for mankind.” If this isn’t our generation’s most important mission, what is?
Think Again – our children need us to be their heroes.
Melanie Sturm | @ThinkAgainUSA
Last week, amidst the firestorm over the words “you didn’t build that,” actor Sherman Hemsley passed away. Americans remember Hemsley for playing George Jefferson, TV’s popular upwardly mobile black businessman. Known for “movin’ on up to the east side” out of Archie Bunker’s neighborhood, we cheered George as he strutted triumphantly into his “deluxe apartment in the sky,” having “finally got a piece of the pie.”
Imagine George’s reaction were anyone to tell him that government was integral to his success, or that he didn’t build his business on his own -- he’d slam the door while hollering “Think Again!”
Considering half of small businesses fail within five years, entrepreneurs like George deserve credit for more than “a whole lotta tryin’ just to get up that hill.” Despite the risks of failure, George made it “in the big leagues” because he possessed unique entrepreneurial traits: business acumen, self-sacrifice, leadership and a willingness to hurdle government obstacles.
Personal fulfillment derived from “odds-beating” industriousness is why America’s founders enshrined the right to pursue happiness in our national creed. Earned success is both materially enriching and spiritually uplifting – and the source of America’s extraordinary prosperity.
Now in the midst of what CBS News labeled “the worst economic recovery America has ever had,” risk-takers like George deserve encouragement, not derision -- nor the toxic cocktail of tax hikes and increased regulations they face. Since 1993, their small businesses have created two-thirds of private sector jobs. Furthermore, they and their employees are among a shrinking percentage of Americans who pay taxes to a government whose current annual deficit is the size of President Clinton’s first budget.
When tax-hike proponents justify expansive government by praising its most legitimate and necessary functions, they’re like David Copperfield, expertly distracting us with one hand so we don’t notice the other. The concern isn’t spending on roads, bridges, teachers or fireman; it’s the 60% of the federal budget consumed by our massive welfare state -- a catchall for Social Security, Medicare, Medicaid, and dozens of other “safety net” programs created by vote-hungry politicians.
Because all citizens -- not just the poor -- receive federal benefits, we’re all self-entitled “welfare queens” now. Consequently, welfare state defenders know it’s the proverbial “third rail” – politicians touch it at their peril.
The welfare state is the single biggest financial problem we face, annually consuming more than the combined cost of the Iraq and Afghanistan wars plus the TARP bailouts. Like the “blob,” it grows by devouring everything in its path, requiring us to borrow $41,222 per second just to keep government running. At almost $16 trillion, the national debt exceeds the size of our economy and is growing so rapidly, the Congressional Budget Office predicted it could cause a permanent recession by 2025.
Like an overweight jockey riding an emaciated thoroughbred, our bloated government sector is not only crushing the private economy, it’s handicapping our opportunity society. Americans are aspirational and self-reliant people, so it’s heart wrenching to note that after spending $15 trillion in the “War on Poverty,” America’s poverty rate has barely budged, food stamp dependency is at a record high, and the percentage of Americans in the work force is at a record low.
As economist Herb Stein said, “If something can’t go on forever, it will stop.” New York Times columnist Bill Keller called for that last week writing, “We should make a sensible reform of entitlements our generation’s cause.”
But now that we’re in the fourth consecutive year in which the US Senate has abdicated its duty to pass a budget for fear of electoral consequences, where are the courageous leaders willing to discharge this fiscal suicide bomb? How do we secure America as a beacon of opportunity (and preserve benefit programs for the generations of Americans paying for them) unless we insist on the distinction between a welfare program and a welfare state?
Our founders were concerned America would reach this moment. John Adams warned: “Democracy never lasts long. It soon wastes, exhausts, and murders itself. There was never a democracy yet that did not commit suicide.” Americans are concerned too, according to last week’s Rasmussen survey in which a record low 14 percent expect today’s children to be better off than their parents.
We didn’t build the welfare state, but now that it’s crumbling and imperiling our way of life, we have the opportunity to transform our government so that it will serve us better. Doing so will renew the moral promise inherent in the American Dream while making it accessible to all.
With free markets and limited government, entrepreneurial risk takers like George Jefferson can deliver renewed opportunity and prosperity, just as they took us from a colonial backwater to an economic superpower.
Think Again -- so our children can earn “a piece of the pie.”
Melanie Sturm | @ThinkAgainUSA
The French celebrated Bastille Day last week, 219 years after beheading Marie-Antoinette in the French Revolution’s Reign of Terror. To this day, she’s the poster-child for upper-class excess, entitlement and insensitivity -- the ultimate “1 Percenter.”
However, Think Again before believing every demonization you hear, especially without factcheck.org. In truth, though a privileged aristocrat, Marie-Antoinette was not only a faithful Good Samaritan, she actually never uttered the notorious catchphrase “Let them eat cake.” Never mind those silly details -- social justice was at stake!
By portraying Marie-Anoinette as selfish and out-of-touch, the revolutionaries justified their bloodthirsty mob rule and indiscriminate savagery. Declaring “liberty, equality and fraternity,” they ushered in an anti-democratic period of unlimited governmental power, civil strife, and economic despair, though eventually Enlightenment principles transformed France into a vibrant democracy.
Today, France has Europe’s most state-directed economy, and among its most stagnant and indebted. Prioritizing “the collective interest,” the French prefer government to free market solutions spending more on social welfare than any other developed country. Recently, the anti-wealth rhetoric of newly elected President Hollande -- and his plans to hike taxes – made London the sixth largest French city, to its mayor’s delight.
Similarly Enlightenment-inspired, though resentful of strong government, American revolutionaries devised a system to protect individual liberties. James Madison wrote, “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.”
While the French were sticking dissenters’ heads on bayonets, Americans enacted a Constitution designed to disperse authority in order to protect the moral promise in our Declaration of Independence: that every individual is born with equal and inalienable rights to life, liberty, property, and the pursuit of happiness. Thus, the American Revolution facilitated the creation of the freest and most prosperous society on earth.
Over the last century, while America’s free economy boomed attracting immigrants to our opportunity society, politicians were busy encumbering it, à la française. They instituted the income tax, asserted extra-constitutional powers to regulate, dabbled in cronyism and created entitlement programs that now consume 65 percent of the federal budget. Once 3 percent of gross domestic product, government spending is now 25 percent, crowding out the private economy and producing daily deficits of $4 billion.
Consequently, we suffer French-size economic stagnation, unemployment, and debt (up 50 percent since January 2009). Poverty rates are the highest since tracking began in 1959; food stamp dependency is exploding; and the percentage of Americans with a job is the lowest in decades. Not surprisingly, two-thirds of Americans say we’re on the wrong track and that there’s too much government power and too little individual freedom.
Meanwhile, clueless that government policies influence economic decisions, politicians now propose increasing taxes. “Taxmageddon” -- the toxic mix of year-end tax increases – is causing businesses to defer hiring and investment. Even if limited to the top two-percent with incomes over $250,000 (which includes small businesses responsible for half of private sector jobs and $720 billion in earnings), tax increases would create serious recessionary headwinds while funding only 8.5 days of federal spending, per the Congressional Budget Office. This is a blueprint to cripple job creation, and 23 million job-seeking Americans.
Though they agreed it was economically injurious to hike taxes in 2010 when the economy was growing at twice its current rate, tax-hikers argue it’s now about fairness while referencing the “roaring 90’s” when rates were higher but before explosions in spending, debt, and stagnation. What's fair about increasing taxes knowing the vulnerable will suffer disproportionately?
What is fair considering 2009 IRS data shows the top one-percent and top five-percent paid 37 percent and 64 percent respectively of federal income taxes, while the bottom half paid two percent? If the richest aren’t yet paying their fair share, doesn’t that suggest they don’t merit their earned success? By denying some Americans their earned success, doesn’t that undermine our opportunity society and social cohesion?
Having migrated toward French values, practices and even their anti-wealth rhetoric, its hard to recall our Founders' belief that government’s role is to protect – not grant -- individual rights and property. To reinvigorate our free society and market economy, we need a true “fairness agenda”: a simpler tax code with fewer special interest loopholes, no more corporate welfare, and reforms that preserve entitlement programs for future generations.
Most importantly, we must recover the private initiative that French historian Alexis de Tocqueville found exceptional in 1830s America: ““In every case at the head of any new undertaking, where in France you would find the government ... in America you’re sure to find an association.”
By renewing our commitment to individual liberties and the ethic that each of us – not government -- is our brother’s keeper, Americans “have it in our power to begin the world all over again,” as American revolutionary Thomas Paine wrote.
Wouldn’t our Founders want us to Think Again?
Melanie Sturm | @ThinkAgainUSA
Tamara Shayne Kagel made waves recently when she wrote a column in the Jewish Journal of Los Angeles titled “I Don’t Want to Date a Republican.” Clarifying her fears, she pondered with horror: “What if I have Republican babies?” Now smitten, she’s had to Think Again.
Having crossed the partisan Rubicon from insularity to open-mindedness, Kagel says she now respects and admires her boyfriend who, she acknowledges, “values helping the poor as much as I do -- just in a different way.”
To arrive at this tolerant Zen state, Kagel recalibrated her moral compass, the antidote social psychologist Jonathan Haidt advocates in “The Righteous Mind -- Why Good People Are Divided by Politics and Religion.” Haidt cautions, “Beware of anyone who insists there is one true morality for all people, times, and places.” Comedian Steven Colbert didn’t buy Haidt’s thesis insisting “not just that I’m right; almost more importantly is that you are wrong.“
Last week, as if aping Colbert, many media, academic and political elites insisted opponents of the Affordable Care Act (ACA) were villainous and treacherous, including Supreme Court justices who might rule the law unconstitutional. Hardball’s Chris Matthews compared Chief Justice Roberts to the judge who upheld the Fugitive Slave Act, but after Roberts became the swing vote, he seemed to morph from Darth Vader into Luke Skywalker.
Disturbed by this Star Wars mentality, polls show public confidence in media and government at record lows. This week’s Rasmussen survey of Supreme Court perceptions confirmed the widening gap between the political class and mainstream voters -- the Court’s favorability doubled from 27 to 55 percent among the political class but dropped from 34 to 22 percent among mainstream voters.
Every American wants our health care system to be more efficient, affordable and accessible. As world-class consumers, we expect cost containment, improved quality and more choices -- we get that in our cell phones, why not our healthcare? We’ve watched Apple compete by continuously innovating, creating new markets and must-have products at prices unimaginable a decade ago. Meanwhile, market entrants like Android offer choices to consumers for whom a phone (never mind an iPhone) was previously unaffordable.
Not surprisingly, Americans rejected government-centric solutions that interposed Washington bureaucrats between doctors and patients and did little to address the healthcare cost explosion. Nevertheless, à la Colbert, lawmakers insisted they were right and opponents weren’t merely wrong, but evil. Despite public outrage, Congress passed the ACA on a party-line vote aided by political payoffs, accounting gimmicks, deceptive language, and parliamentary trickeries never before used for such far-reaching legislation.
As unsettling is the perception that last week’s Supreme Court ruling -- which rewrote the ACA in order to find it constitutional and used reasoning that politically-diverse legal experts regard as flimsy -- was made to protect the Court’s legitimacy in the eyes of those who define illegitimacy as anything with which they disagree. If political calculations factored into Court deliberations, doesn’t that undermine judicial integrity?
Most importantly, two years into the 2,409 page law and 4,103 pages of associated regulations, we know it’s “dreadful public policy,” as non-partisan Washington Post columnist Robert Samuelson wrote: Its “attempt to achieve universal health insurance coverage is a massive feat of social engineering that, by its sweeping nature, weakens the economic recovery and antagonizes millions of people.”
Moreover, its promises are false: health insurance premiums have risen $2,200, not declined by $2,500; official cost estimates nearly doubled with further increases expected, thus increasing the deficit; and millions of Americans will lose their insurance and doctors as companies dump workers into government health exchanges to avoid escalating healthcare expenses.
Now consider the moral travesties. Not only does the law perpetuate the largest transfer of wealth from the young to the older in world history, it promises a quantity and quality of care it can’t deliver while stifling the medical innovation on which the world depends for continuously improving health outcomes.
The story of Deamonte Driver, a 12-year old Medicaid beneficiary, is instructive. Unable to secure appropriate and timely treatment, he died of an infection that started with an abscessed tooth -- not because he was uninsured, but because he was government-insured.
The ACA’s proponents won’t mention these fiscal, economic and moral challenges. Like used car salesmen, they tout loss leaders (universal coverage and 26-year olds on parents’ plans) and free extras (contraception) – all attainable with cheaper and less disruptive policies like tax credits and high-risk pools. How do we separate the facts from the sales pitch, and if the deal is so good, why do the well-connected get waivers?
With so much at stake, lawmakers must recalibrate their moral compasses. Having done so, Kagel personifies Haidt’s message that love and mutual respect engender the willingness to see those with opposing views generously, improving everyone’s outcomes.
If elected leaders won’t love and respect us, we must Think Again in November.
Melanie Sturm | @ThinkAgainUSA
As if accompanying Dorothy en route to the Emerald City of Oz, Americans seek a green wizard to fulfill our hearts’ desires -- a world powered by renewable energies like solar, wind and bio-fuels. Bedazzled by Glenda the Good Witch’s solar-powered ruby slippers, we want the green-brick-road to lead us to a cleaner energy future.
However, without Auntie Em to awaken us to reality, Americans must Think Again. Though cast as the Wicked Witch of the West, over the last decade the conventional energy industry has revolutionized America’s energy outlook. Today we’re the most energy-endowed nation in the world, with enough clean, reliable, abundant, and cheap natural gas to last for generations.
It’s “like adding another Venezuela or Kuwait by 2020”, according to Pulitzer-prize winning energy expert Daniel Yergin who believes the world energy map now centers on North America, not the Middle East. Energy consultant Wood Mackenzie estimates that tapping new reserves would generate one million jobs by 2018 and generate $803 billion in governmental revenue through 2030. Additionally, these new extraction technologies require far fewer wells, though they present fresh environmental challenges that several states (including Colorado) have addressed with new regulations to protect the environment and secure water supplies.
Thus, rather than crucify the conventional energy industry, we should celebrate the entrepreneurialism and technological ingenuity that’s enabled the US to become a net energy exporter for the first time since 1949. The government need only permit development of new reserves -- not subsidize -- to further American energy independence, fuel our vehicles, lower energy costs and reap economic gains.
Meanwhile, promoters of green energy policies continue to argue that “investments” in renewable energies are environmental and job-creation boons for America, though our journey along the green-brick-road proves otherwise. Whether evaluating wind power in tornado-swept Kansas or solar energy in sunny California, renewable technologies are woefully uneconomical, wickedly unreliable and surprisingly unsound environmentally.
It’s understandable Americans dream green, considering we were told in 2008 that by investing $150 billion over the next decade in renewable energies, we’d reap five million new jobs. But as former Treasury Secretary Larry Summers noted, “The government is a crappy venture capitalist”. That’s because lobbying prowess and political viability outweigh economic viability when government picks winners and losers.
After “investing” $110 billion since 2009, the sector is littered with taxpayer backed, bankrupt companies like Solyndra, Beacon Power, and Ener1, all of which paid bonuses before going under. Reuters reported last month “the wind industry… has shed 10,000 jobs since 2009 even as the energy capacity of wind farms has nearly doubled”… while the demonized “oil and gas industry added 75,000 jobs.”
The truth is, industries that aren’t economically viable don’t create real jobs, and those that are viable, don’t need subsidies. Plagued by competitive disadvantages like sun and wind intermittency, and expensive land, capital, transmission and backup capacity, these technologies are uncompetitive, small market players and remain subsidy-dependent.
Despite receiving 53.5 percent of federal financial support for the electric power sector, wind and solar supply only four percent of US power at a cost 100-300 percent more than conventional sources, according to the Energy Information Administration. A University of Wyoming study notes that because green policies increase prices, the “economic benefits derived from building renewable energy facilities in the short-run are more than offset by losses in economic output and employment”, thus hurting the poorest and most vulnerable.
Additionally, given renewables’ green patina, many don’t appreciate their adverse environmental impacts beyond the eyesore, noise, water usage, and wildlife destruction. Called “energy sprawl” by the Nature Conservancy, renewable energies require vastly more land while producing significantly less energy than conventional energy. Most disconcerting, their incurable intermittency requires utilities to rely on conventional power to cycle up when there’s no wind or sun, and power down when there is, thus diminishing carbon reduction advantages.
If policymakers weren’t brainless scarecrows, cowardly lions and heartless tin men, they’d adopt Bill Gates’ proposition that cheap energy is “a fantastic vaccine” for the economy. That’s what Americans deserve – a booster shot to deliver authentic solutions, real jobs and genuine economic growth. Moving beyond fossil fuels will happen eventually when superior and affordable energies are scaled for mass use.
Energy development isn’t a zero sum game, as the Wyoming study concludes: “Environmentally responsible development of fossil fuel resources could be complementary with renewable energy development, creating jobs and generating tax revenues to ensure a robust economy capable of creating and funding innovative renewable energy technologies of the future.”
Given our economic straits and the remoteness of the green dream, the underlying question is how much more are Americans willing to pay to harness wind and sun. Isn’t it time to demand that our leaders propose energy solutions based not on ideology but on how to best guarantee prosperity for generations of Americans?
Think Again – a secure, affordable and environmentally sound energy future is not over the rainbow.
Melanie Sturm | @ThinkAgainUSA
What do you get when you cross George Orwell’s Animal Farm with John Belushi’s Animal House? Government Gone Wild!
If you assume that’s the title of a porn movie about U.S. secret service agents cavorting with prostitutes in foreign countries, or employees of the U.S. Government Services Administration (the GSA manages federally-owned property) whooping it up in Las Vegas at taxpayers’ expense, Think Again.
The hard truth is that the larger government grows, the more Orwellian and “Animal House” its conduct. Belushi’s character “Bluto” exercised no greater restraint around free beer than did GSA Regional Director Neely and his employees, whose exploits at their $823,000 Las Vegas “team-building” soirée were videotaped, only to dominate newscasts this month. Bluto couldn’t have carpe diem-ed on his parents’ allowance better than Neely who wrote in an invitation to personal friends: “We’ll pick up the room tab…. I know I’m bad, but…why not enjoy it while we have it….Ain’t gonna last forever.”
Since government depends on resources drawn from the real economy, consider these facts: after the GSA’s Inspector-General reported Neely’s misconduct, Neely still received a 2011 bonus; the average GSA salary is nearly $92,000, $40,000 more than median household income; and the GSA’s budget rose 119 percent in 2011. Furthermore, the non-partisan Congressional Budget Office reported this January that federal employees enjoy greater job security and earn significantly higher compensation compared to private-sector workers.
Having worked in a large bureaucracy (the World Bank), I believe most public servants are decent, skilled, and dedicated, though rarely are “per diem” allowances unspent, or self-justifications un-uttered. It’s a truism that people won’t spend other people’s money as carefully as they spend their own. Unlike household budgets that strive to boost savings by minimizing expenses, government bureaucracies spend what they’re given while justifying more for next year. They also lack the expertise and market discipline to “invest” wisely, evidenced by “green investments” in now-bankrupt companies like Solyndra.
Here's the ultimate question: why transfer more money from the real economy to those who are intrinsically more wasteful, negligent and indifferent to its ultimate good? To curb Bluto-like behavior, voters mustn’t allow irresponsible conduct they wouldn’t otherwise tolerate. If your child spent irresponsibly while racking up credit-card debts, wouldn’t you confiscate his card? Good governance, like good parenting, means establishing and enforcing reasonable limits.
Yet, politicians charged with stewarding America’s finances have acted like the pigs in Animal Farm who pronounced “all animals are equal, except some are more equal than others.” Exempted from the self-discipline and frugality associated with American Exceptionalism and prosperity, they’ve presided over the greatest scandal -- an explosion of government, an avalanche of debt and the mugging of our children’s future.
April 29th marks the third consecutive year in which the Senate hasn’t passed a budget. Vested with the authority to confront and steer America through fiscal problems, the Senators’ inaction reflects the ultimate “piggish” dereliction of duty. It’s also illegal, though conveniently, there’s no penalty for breaking the 1974 Budget Act.
Senate Budget Chairman Kent Conrad said last year, “History is going to judge whether we have the courage, character, and the vision to stand up for America’s future. Those who take a walk, those who turn away, those who don’t have the gumption to stand up, are going to be judged very, very harshly.” Though Conrad intended to pass a budget resolution this month, he was over-ruled by Senate leadership. Believing they can evade electoral consequences by not voting on difficult budget matters, they mirror the corrupt, greedy, and myopic leadership of the pigs in Animal Farm.
Economist Milton Friedman, one of America’s greatest apostles for freedom and free markets, believed politicians are finger-in-the-wind types who can be trained: “The important thing is to establish a political climate of opinion which will make it politically profitable for the wrong people to do the right thing. Unless it’s politically profitable for the wrong people to do the right thing, the right people will not do the right thing either.”
In other words, the onus is on us. Politicians will concern themselves with our interests only if they think we care. If we don’t care that they’ve violated the law by refusing to adopt a budget, and that they’ve spent us $16 trillion into debt, what do we care about?
Demand accountability and restraint, and don’t allow the word trillion to be normalized, after all, a trillion hours ago dinosaurs roamed the earth! Don’t wait for the right people to get elected; remember, Bluto became a US Senator despite his 0.0 GPA. It’s a basic rule of life -- If we tolerate out-of-control Animal House behavior and indifferent Animal Farm attitudes, we’ll just get more of it.
Think Again. It’s not only a fiscal imperative -- it’s a moral one.
Melanie Sturm | @ThinkAgainUSA
“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.”