This Is What Democrats Do

Obama’s latest budget is a joke and an insult to the American people. If Harry Reid allows it to reach the floor it will be voted down like last year: 97-0.

Republicans in the House are passing budgets and bills.

Obama is passing the buck.

He’d raise tax rates and cut defense spending while expanding spending in every other area. This is a broken record.

The recent flap involving the Catholic Church and contraception etc. shows exactly what Obamacare is all about. We all lose our freedom when we hand over the health care and insurance business to bureaucrats. Now we are being told that pregnancy is a preventable illness. Do they read their own press releases? The Democrats simply run around declaring that one thing or another will be free of cost. There is no such thing. This is childish and ignorant.

The free market isn’t a bunch of “greedy capitalists” ripping us off without repercussions. The free market is about OUR freedom to choose. In that system businesses compete for our money — just like Apple and Microsoft compete for our computer and technology business. Things get better and cheaper for us while the corporations make money. There are profits and jobs — not subsidies and scandals like Solyndra.

The GOP needs a coordinated message that explains that to the voters and shows how Republicans will be distinctly different than the incompetents in charge now.

Obama and the Democrats are attempting the same controlled-economy nonsense that has failed every single time it has been forced on a population. The Soviet Union is only the most infamous example.

We are at a point where we need strong leadership to push bold policies that repeal and reverse most of this. We’ve been sliding toward socialism since FDR and the main difference now is that quicker pace. We’re at multiple tipping points. We’re broke and facing a real economic catastrophe.

If Mitt Romney wants to win the election he needs to understand that the President is not the CEO of America. You cannot micro-manage the economy–you can only set it free.

Pat Duggan

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Congress Defaults

The so-called “Super Committee” failed to yield one iota of progress in resolving our debt crisis and credit-rating downgrade. We knew this would be the result the day it was announced. The leadership of both parties and President Obama should be ashamed for supporting this stunt that merely wasted precious time. The notion that 6 Democrats and 6 Republicans could agree on anything was and is ludicrous. That Congress would abdicate it’s duty in this way is shameful. This will be Boehner’s legacy.

I don’t know what is more frustrating: the ridiculous straw man arguments that the Democrats keep recycling — or the Republicans inability to debunk them.

The left has assailed sensible economic policy for decades via this tactic. Reagan’s policies that focused on cutting top tax rates, a strong dollar and selective deregulation were smeared with the moniker “trickle down” — as if that is what the conservatives were hoping would result. In a grand compromise, tax rates were cut with the promise that spending would be cut later. The Democrat-controlled Congress reneged on that pledge and the resulting deficits were blamed on Reagan’s tax reductions. The fact that revenues doubled in 8 years as top rates were cut from 70% to 28% was and is intentionally ignored. It is worth noting that it was Newt Gingrich and the GOP-led Congress that did get things under control resulting in the alleged surpluses of the Clinton era. (This was mostly smoke and mirrors that involved the raiding of the mythical Social Security “trust fund”; an accounting ruse that would land a CEO in jail.)

Now the Democrats are trying to pretend that the GOP has only one solution to every economic ill. They’ve consistently referred to unchanging tax rates as “tax cuts”. Democrats ramped up spending by 25 % in their 2 years of control and we have a jobless, weak recovery with record debt to show for it. Their stimulus failed as every sensible economist said it would. Keynesian economics can now be relegated to the “ash heap of history”.

The truth is that it is the Democrats who are offering a single solution to all our problems: hike tax rates on the top-earning bracket. A quick analysis shows that this doesn’t result in a substantial increase in revenue or a reduction in debt. Why? As always, there just aren’t enough rich people around. When this is acknowledged the next logical question must be: if taxing the top bracket is insufficient and we refuse to cut spending what must happen? And the only possible answer is: tax rates must then be raised across the board or our exploding debt will lead to excessive money printing, hyperinflation and ultimately, default and economic collapse. The middle class would be wise to take notice and vote accordingly.

Polls consistently show that we hold Congress as a whole in utter contempt – yet tend to give our own representative a passing grade. News flash: If your Senator or Representative has been around for more than 2 terms they are the problem.

I suggest Newt or Mitt or whoever make this their campaign theme:

It’s the spending stupid.

At some point spending and taxes must equate. Deficits at any point ensure higher taxes later. Politicians always prefer later. Later is here. We are at a point on the Laffer Curve where higher rates will produce diminishing returns. Comparisons to rates of earlier eras become faulty as local governments raise their taxes ever higher.

The tax demagogues should be confronted with this simple graph:

The lower rates accompany a period of tremendous growth, falling inflation rates and low unemployment. When I see this graph my impulse is to ask: what gives us the right to seize 90% of anybody’s anything? How did this happen? Isn’t our Constitution designed to prevent exactly this type of tyranny?

As for the spending, our next GOP nominee would be wise to choose Oklahoma Sen. (and Dr.) Tom Coburn as VP. He has outlined hundreds of billions in wasted spending – and yes, much of it is earmarked for Republican projects. This is the time for leadership. The GOP must take the first steps and specify where they will make cuts dear to their own constituency for the good of the country.

We have all the ammunition we need to support a conservative plan for real spending cuts – not just smaller increases – and tax reform that would eliminate the loopholes and streamline the filing process. When properly presented this common sense approach reveals the Democrats singular alternative for what it is: a simplistic and naïve approach that has been used before with disastrous results. Their insistence that it be tried once more is not policy it is a tantrum.

If the current President and Congress can’t take the obvious steps we need to fire them and elect a group who will.

The Debt Ceiling Charade

The so-called debate over the debt ceiling is going nowhere because the elected officials involved have zero experience in problem solving at any level. The only reason this debt ceiling increase hasn’t been rubber stamped like the last 100 times is that the Republican House is attempting to use it as a bargaining chip. With the Democrats in control of the Senate and Obama in the White House they have very little leverage and seemingly no clue as to how to use what they have.

Part of the problem is that Washington politicians know virtually nothing about negotiating. The result of almost every impasse is a “Washington Compromise”, just one more oxymoron from our capital. As every married man knows, a real compromise requires a tradeoff, some sort of sacrifice. You want to play golf this Saturday? Fine, but you’ll be spending Sunday working on that “honey do” list. You gotta give a little to get a little.

In the Washington alternative universe both sides get everything they want. But the laws of mathematics are not so easily suspended. Who does the giving? The tax payer of course. It is because of this habitual way of doing things that the debt keeps mounting.

It is all made worse due to the static scoring that assumes higher tax rates produce higher revenue. History shows us otherwise. The lowering of tax rates under Coolidge, Kennedy, Reagan and Bush II all were followed by increased revenue. Revenues fall during recessions-so let’s stop having them.

The GOP is trying to appear tough right now because they know this is why they won so big in the 2010 mid-terms. They have a mandate to cut spending without raising tax rates. Obama and the Democrats received the same message. Their solution? Stop passing budgets and try to stall until after the 2012 elections.

What should the Republican Party do?

First, get its act together. They are rudderless. There should be a clear plan with a chosen leader to promote it. Plan it before you publicize it. Instead, on the night we pass the “Cut, Cap and Balance” the “Gang of Six” announces a conflicting plan. I am a fan of Tom Coburn. He is one of the few decent people in politics-but he should have his head examined. Why would anyone join a “gang” that included Dick Durbin?

They need to make this a 2012 issue. It goes like this:

We have presented a plan for moving forward. In acknowledgement that the economy is still showing signs of weakness, particularly in the employment sector, we refuse to consider a tax hike. Since government spending requires diverting money from the private sector and prevents growth we are proposing serious spending cuts-not just lower levels of increase. By necessity this includes serious entitlement reform.

If the Democrats in the Senate refuse to work with us-or if the President vetoes this common sense plan-we will have no choice but to pass a series of small bumps in the debt ceiling to prevent a shutdown of government. The American people have made it clear that the growth of government must stop. We agree and we’re willing to take that fight to the polls in 2012.

Pat Duggan

Debate the Bigger Issue

Instead of playing a game of political chicken with Obama, the Republican leadership should grab the high ground and focus everyone’s attention on the big picture. Everyone knows the debt ceiling must be raised. The question is not whether it will peak at 15 or 16 trillion dollars-the cold reality is that it will be a much higher number. The GOP should not get trapped into negotiating around such a puny issue. They need to move the focus on the bigger, more important concerns. The health of the economy and the debt rating hinge on Washington’s ability to change the trajectory of government spending and the debt it generates. Under Obama, spending as a share of GDP has jumped 25% while revenues have dropped, as they always do, due to the deep recession. Current debt is virtually irrelevant when compared to the unfunded entitlement liabilities that exceed $100 TRILLION.

The only way to solve this problem, which was decades in the making, is with a long-term plan that will transcend the 2 year election cycle. The GOP needs to reject the static scoring that puts a price tag on lower tax rates. The Laffer curve demonstrates that the presumed correlations do not exist. Alan Reynolds recently authored a piece in the Wall Street Journal accompanied by a chart showing income tax revenue as a share of GDP as the top marginal rate was lowered from 91% to 28%. Revenues rose as a raw number and a percentage. (More on that here: LINK)

The silver lining in the current economic cloud is that the Democrats with their super majorities were able to give their economic theories a thorough test. The failure is also thorough and evident. The so-called “stimulus” was neither targeted nor temporary. The Democrats are trying to use it as a new baseline for budgeting. The crown for the party of big spending is properly placed once again. The GOP needs to claim victory and move on. The 2010 mid-term elections are their mandate.

This is our moment. We must seize it. Promises have been made for decades that can never be kept. The age of unfunded liabilities is over. True entitlement reform must include a transition to private accounts so that congress can never again spend what should have been in the mythical trust fund. Our health care is our responsibility. It is not a right-it is a basic necessity, just like food and housing-other areas where government meddling wreaks havoc. Insurance is a risk management tool that adds a layer of bureaucracy and the associated costs. It should be used sparingly, and will be, once it is untangled from the insane tax code.

A vibrant, growing economy can eventually dwarf the debt figures and then we can pay it off entirely. A rational energy policy focused on domestic drilling and proven technologies must replace the “green” fantasy. Real jobs will produce real revenue and help slay the inflation dragon that has already brought us $4 gas. Gains in national security are achieved as well. This message, this vision, can clarify the ongoing debate and serve as a national platform for the 2012 elections.

Pat Duggan

Reality Check For The Left

If we don’t force our elected representatives to cut spending they will be forced to tax YOU, regardless of your income, at a painfully high rate. The liberals have been lying about taxes ever since they first passed the initial income tax on “only the very wealthy” and only at small levels. They said they would never tax YOU-but they are now, aren’t they? They feed the beast of government and then when we try to cut some programs they scream bloody murder. Never forget that in the recent budget “negotiations” their proposal was to cut zero from our bloated federal budget. Nothing was on the table.

At some point tax revenue and spending levels must match. Borrowing only delays the inevitable but that is the preferred method for our gutless politicians. As anyone who has ever financed anything knows, it just costs more in the long run. Imagine a world in which everything that Congress authorized had to be paid for immediately. Imagine what it would be necessary if they were not allowed to create an unfunded liability. What if there really was a Social Security trust fund? A “lock box”? Washington pols would be faced with some serious decisions. They would have to raise taxes on everyone to levels that would end their political careers, or they would immediately have to trim the fat from the budget. Suddenly there would be no funds available for the Rock and Roll Museum or the “Bridge to Nowhere”. We wouldn’t have hundreds of federal agencies doing virtually the same thing. The Department of Redundancy Department would finally be shut down.

Today’s Wall Street Journal has the hard numbers here. It is eye opening.

LINK

Pat Duggan

Published in: on April 18, 2011 at 8:31 am  Leave a Comment  
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The Left’s New Math

In their attempts to demonize Republican efforts to restore fiscal sanity the left will try anything, from basic smears to grand hyperbole and outright lies. The Tea Party is “extreme”. Budget cuts will starve seniors and even “kill women” according to Rep. Louise Slaughter, D-N.Y. Now the class warriors are trying a new tactic, one that requires inventing a totally new concept: reverse wealth redistribution.

The theme is appearing more frequently. I hear it in conversations with liberal friends and echoed in the media. E.J. Dionne floated it in a recent column, where left-wing fantasies run free. More evidence that this is an orchestrated left-wing talking point came from Donna Brazile on ABC’s Sunday morning show.

What is their claim? Ms. Brazile claims that Republican policy, as evidenced in Paul Ryan’s “Path to Prosperity”, is “taking money from the poor and giving it to the rich…in a redistribution of wealth.” Huh?

E.J. Dionne wrote that we “are about to learn how radical the new conservatives in Washington are, and the extent to which some politicians would transfer even more resources from the have-nots and have-a-littles to the have-a-lots.” I see.

So this is what goes for logic on the left.

All this is based on the left-wing fallacy that the government has any money that isn’t first seized from the private-sector economy. Under this straw man presumption, money is then doled out, with the rich getting more than they need at the expense of the poor. Only using this deeply-flawed starting point can the wealthy, really just this year’s hard-working top earners, actually be “taking” anything from a group that has nothing to begin with-or they wouldn’t be poor now would they?

They’ll say anything that fits their view, regardless of fact. From this foundation they build their “argument”. According to the left, so-called “income distribution” has been severely skewed in recent decades, going back to the Reagan era of course. This is ground zero for tax zealots. But facts are stubborn things. While top tax rates were cut from 91% to 28%, before moving back up to the 35/39% area, revenues continued to increase and the top income brackets saw their share of total tax revenue increase as well. Rather than concede the obvious-that they have lost the debate-they opt to change the subject. It’s not about revenue anymore; it is about “fairness”. Obama said just that in his famous chat with Charlie Gibson when it was pointed out that lower capital gains rates had produced higher revenues.

Bill Gates became a billionaire, and thousands of employees became millionaires, while developing the software that propelled us into the age of personal computers. Billions upon billions in taxes were paid, both by the corporation and the employees through corporate, income and FICA taxes. Microsoft stock has generated billions more in capital gains. Thousands of companies were launched in related industries, creating yet more jobs. Thousand of separate industries became more efficient and our cost of living was lowered while our standard of living increased. We have thousands of years of information at our fingertips and up-to-the-minute news. Yet all this must be wrong because Bill Gates makes X-times more money than the average Joe.

This is the tantrum of the left. When confronted with evidence that destroys their theories they cover their eyes and ears. They won’t look and they won’t listen. Why not embrace the basic truths of the “Laffer Curve” and enjoy the optimized revenue stream? Because that would begin to unravel their carefully constructed world view. If they’re wrong about economics-and they are-what is next? Could it be that their welfare programs actually hurt the poor? Is global warming a hoax? Could the U.S. drill for enough oil here to be truly energy independent?

In the left’s imagination, America is a pie that magically appears and they think the government should slice it up more “fairly”. In reality, those who bake the pie, after paying for all the ingredients, should have a bigger say in how many slices the government seizes. Under current projections, in a few years they will take it all. The bakers will be on strike before that happens.

Pat Duggan

Published in: on April 11, 2011 at 1:29 pm  Comments (1)  
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Victory in Wisconsin

Polls regarding the recent Republican victory in Wisconsin are close, with some indicating public disapproval of the union busting maneuvers. Take them with a large dose of salt.

Polls can be worded in ways that promote a desired outcome. Emotions are running high and misinformation is being spread.

The public doesn’t officially weigh in until the next election. Between now and then the Republicans will have time to more fully explain the budget numbers. As more tax payers come to understand that public sector unions expect us to pay ever-higher taxes to perpetuate their gold-plated compensation packages, sentiment will shift and solidify on the side of Governor Walker and the elected majority.

The hypocrisy of the “flee-baggers” stands in glaring contrast to the honorable Republicans who cast their losing votes on Obamacare and then looked for constitutional methods to fight back while preparing for the next election-which they won handily. That process continues with efforts to de-fund that Obamanation led by Rep. Michele Bachmann who has helped to expose $105 billion in costs buried in the bill.

The Tea Party energizes new Republicans by demonstrating rock-solid support for this brand of tough, no-nonsense politics.

Pat Duggan

Published in: on March 14, 2011 at 3:07 pm  Comments (3)  
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Serious Comments on an Unserious Budget

Our friend Mike Ashton at E-piphany blog makes a comment on the Obama budget that is seemingly obvious-except to the political class.  He links to a color-coded chart in The New York Times that shows where the budget is increasing.

Mike’s comment:

What is amazing to me (and I don’t want this to become a political comment, but large deficits have a market effect and an economic effect and so it’s worth discussing) is how many parts of the budget are increasing at the very time when we’re running pan-trillion-dollar deficits. This is true even among discretionary items, but let’s be frank here: if the alternative is that the nation is unable to fund this budget and unable to borrow it, these are all discretionary items.

It reminds me of times of budgetary crisis when “non-essential” workers are furloughed. If they’re not essential-then why do we have them?

Published in: on February 15, 2011 at 9:24 am  Leave a Comment  
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Obama Pivots Back

Well that didn’t take long. Obama presented his budget proposal today. It is an insult to the intelligence of the American people. Government spending, taxes, deficits and their impact on the economy are of concern to all tax paying Americans-but apparently not to the President. There was no pivot to the center-just pandering to the voters and a compliant media.

I am not going to go into detail on the numbers or post one link. Any reader can simply go to his favorite news page or turn on the TV. The specific numbers simply provide a laugh track.

The government is currently running ANNUAL deficits of 1.5 TRILLION DOLLARS. Obama is proposing overall spending increases on top of an already inflated base to set a new spending record. He is also proposing myriad tax increases, including a hike in rates in two years when he just admitted that would be harmful for the economy. He combines the tax hikes with  puny spending cuts in targeted programs and voila! He claims he will reduce the deficit by 1 trillion over 10 years.

This is Orwellian double-speak. The deficits and debt are increasing. Period.

The GOP should denounce this for the stinking pile of crap that it is. Every serious Democrat should renounce this. The 2012 campaign starts now. Obama just gave the challengers are huge head start.

Pat Duggan

Tea Partiers are Ready for Their First Mid Term Election

Wednesday evening I attended the October monthly meeting of the Chicago Tea Party. Featured speakers were Isaac Hayes, the GOP nominee running against Jesse Jackson Jr. (or Senate candidate #5 in FBI reports on Blago’s attempted seat sale) and recent candidate for the Illinois GOP governor nomination, political commentator and radio fill-in Dan Proft. It was the usual lively event with a call for action in the final month approaching the midterm elections with lots of tight races among an expected overall GOP victory. Isaac is ready for congress despite the Chicago Tribune’s gutless “no endorsement” in that race. Dan Proft did a great job of explaining why we prefer the sometimes less polished candidates that agree with our principles and will vote for them over the slick insiders who only sell us out later.

There was various media in attendance including a videographer for CBS evening news. I heard the poor fellow confessing to the owner of host venue, Blackie’s in the south “Loop”, that he’d forgotten his headset and begging to borrow any kind of replacement. Maybe that is why the few seconds of tape that appeared on the Thursday evening news were accompanied only by a Katie Couric voice over and no interviews-all this despite his non-stop 2 hours plus of taping.

Naturally I Tivo’d and watched  the news cast. It is being promoted as an ongoing series on the final month of the campaign. They did their best to smear the TEA party movement and diminish their impact but I doubt it had any effect. Katie Couric’s numbers are at all time lows. LINK

They tried to jam a lot into their 2-3 minute segment. Lots of internal polls designed to show that TEA party activists are white, male, protestant and inclined to vote Republican anyway. This should come as no surprise. The GOP is hearing the message and embracing it. Despite some party insiders insisting on trotting out the same old RINO’s voters are nominating fresh blood. One poll question mirrored the one asked of the Chicago organizer Steve Stevlic: Would the economy have been better off if we allowed the banks to fail? In the interview the car companies were included. This is a transparent apology for bailout-Obamanomics. Sure the economy sucks but it could have been worse-right?

Overall I would describe the coverage as worthless / harmless. It was slanted but mostly just so superficial as to be a waste of viewers’ time. I guess that was their goal: don’t give the TEA party any unnecessary free PR.

In closing the “reporter” Dean Reynolds sighted one last poll that claimed only “22% of Americans view the movement favorably.”

This is nonsense. More than 50% support the TEA party to some degree and would vote for a candidate they support. LINK

The left is in full tantrum now. They have no rational response to a true grass roots effort that focuses on simple, key issues:

1.    Fiscal responsibility and balanced budgets, like every household and business manages through good and bad times.

2.    Lower spending that reverts back to constitutionally endorsed basics.

3.    Tax rates that are kept low to allow for free enterprise to flourish with a nod to the Laffer curve.

4.    Accountability in government: citizen legislators as opposed to career political hacks.

Two thirds of America supported Obama after his election despite only 53% voting for him. This shows the inherent optimism of the American people. They’re even good losers. Now two thirds don’t approve of the direction we’re heading. 80% don’t approve of congress. This is what feeds the TEA party with energy. This is not racism. These are the same people that knew government run health care was a bad idea when it was called “Hillarycare”. This is about economics. Only the desperate Democrats think these are racial issues.

Pat Duggan

TEA Party Principles

Principles. The TEA party voters have them. Not every candidate is going to be as charismatic and polished as Marco Rubio. But the TEA party movement is consistent in their standards of rejection.

I continue to disagree with Karl Rove and Charles Krauthammer-not for their analysis, Christine O’Donnell has an uphill battle-but for their at-the-finish-line criticism of the TEA party for holding their ground. We would not be pondering a GOP senate majority if not for this grass roots movement, their rallies and their consistent message. To throw all that away at the finish line and throw our support behind a schmuck like Mike Castle would be throwing in the towel and cutting a deal with the devil. We would become those that we despise.

We may lose this battle but we will win the war. It is not the fault of the upstarts that the entrenched organizations couldn’t draft better candidates. The message being sent will echo as we are introduced to the next crop of primary candidates for the 2012 elections.

Despite the Scott Brown shock it was too late to draft better GOP challengers for this cycle. Illinois and the ridiculous Mark Kirk are proof. I’ll vote for him-and I would vote for Christine O’Donnell without hesitation. Just look at her opponent. Sure most of the people reading this post are more qualified for office than she is. Most of the people reading this post are more qualified to be president than Obama.

We do not always get to vote for people we like. In this election more than any other we are voting for policies-or against them. It has always been simple but now the voters are aware. Vote for free enterprise and small government or sink into a socialist hell.

Political Snobs

It has been truly amazing to see the political class throw a hissy fit over the recent election cycle and the TEA party influence. Elected officials, TV talking heads, radio hosts and print columnists of all stripes are struggling to wrap their heads around this phenomena. It seems the longer they’ve been around the harder it is for them to think outside a box they’ve occupied for decades. Watch how fast things change as we approach the November election. Karl Rove has quickly back pedaled from his nasty comments about Christine O’Donnell and now-of course-supports her.

I exchanged emails with Karl a while back after he wrote a piece predicting big gains for the GOP. His assessment of the GOP chances for grabbing 10 senate seats included gushing that “Mark Kirk is a strong candidate…” I pointed out that Kirk was a problem candidate as one of eight Republican house members that voted for “cap and trade” and that the TEA party voters would not rally behind him in the general election. He asked that I “honor the outcome of the GOP primary”-and I will. Now it appears he is taking his own advice after giving the Democrats some nifty soundbites for their mud slinging ads for their socialist candidate for Delaware Senator.

Allegedly conservative columnist Steve Chapman wastes our time once again in his regular column in the failing Chicago Tribune here: LINK

Here’s how he starts out:

“Here’s my first impression of the tea party movement: It’s a rabidly right-wing phenomenon with a shaky grasp of history, a strain of intolerance and xenophobia, a paranoia about Barack Obama, and an unhealthy reverence for Fox News. Any movement that doesn’t firmly exclude Birchers, birthers and Islamaphobes is not a movement for me.

Here’s my second impression of the tea party movement: We are lucky to have it.

That’s because the tea partiers, who may not all agree on gay marriage or birthright citizenship, are united behind a couple of sound goals: curtailing the cost of government and refusing to live at the expense of future generations.”

So he starts out with a slanderous generalization and then takes it back-sort of-by admitting to the more accurate description of their common threads. What a schmuck.

The TEA party resonates because it is real. It is grass roots. They balance their budgets-without taxing anyone-and expect their elected officials to do the same. When money is tight they might cut back on dining out, or vacations. The least our elected officials could do is not give “stimulus” money to a genital washing program in Africa. LINK

I’ve often said that any housewife could balance the federal budget because they do it everyday with less. Is it any wonder that women with seemingly meager qualifications are winning elections against the experienced candidates like Mike Castle who presided over the decades long creation of this mess?

We need common sense solutions to problems that the political class pretend are too complicated for anyone but them to solve. The  TEA party is a growing group of motivated voters set out to prove just that.

Pat Duggan

Published in: on September 16, 2010 at 2:30 pm  Leave a Comment  
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Stop Calling Them “Tax Cuts”

The GOP has bungled this situation for 10 years and running. This is about tax RATES and how high is too high. It appears that the GOP is not much better informed on economics than the Democrats. They got suckered into lowering tax rates back in the early Bush years with sunset provisions and now we have to vote for passage again with a hostile congress and a stubborn president without an economic clue.

This is one of the top reasons Michael Steele should be forced out. The GOP has a golden opportunity here to frame the debate in it’s proper terms: Optimal rates and the Laffer curve. The Democrats would have you believe that “tax cuts” are no different than welfare checks and are simply handed to wealthy folks that don’t need them. This is not about how the government spends money this is about where the government gets the money in the first place. Taxing top earners at punitive rates sucks the life blood out of the economy. The GOP has a chance to prove once and for all that the Laffer curve is not a “supply-side” theory, it is an economic truth.

They need to prepare now. Take the house in 2010 and the senate with a new President in 2012. Then gradually lower rates while holding the line on spending and watch the deficits turn to surpluses and showcase the results. The revenue gains from the Reagan and Bush tax reductions were obscured by spending increases. This is the time to take control and regain the title of fiscal responsibility.

Robert Tracinski of the Intellectual Activist reminds us of the toxic policies of the FDR era  in his latest missive, “And let me add that the Republicans of today are (with a few notable exceptions) more radical than the Republicans of 1946, back in the era when “me-too” was the official policy of the right. And that’s not to underestimate the achievement of the post-war Republicans, who did a lot to dismantle FDR’s sweeping wartime economic controls—which is what actually ended the Great Depression and ushered in the prosperity of the 1950s.

You can sign up for a free trial here: LINK

This is a battle of ideas. The GOP needs to prove they have a better idea and this is the way to do it.

Pat Duggan

Governor Quinn handing out raises

Follow the ongoing absurdity of Illinois politics with link below.

Our elected “leaders” are simply incapable of taking even the smallest step in the right direction. For all the blather in recent years about “special interests”-and the backlash against private industry-the biggest outrages are clearly payoffs to public sector unions and the political class.

LINK

Pat Duggan

Published in: on July 8, 2010 at 8:55 am  Leave a Comment  
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Illinois Construction Strike

It is aggravating enough dealing with the poorly planned construction projects here in Illinois, now we have to tolerate a slowdown due to striking workers. They are making $50 to $68 per hour ($100K+ annual) and asking for more in a deep recession from a bankrupt state. This is what happens when necessary work is funneled through the government process and comes out the other end as a wasteful bloated mess. Our elected officials are blessing this malfeasance to but the union votes with our money.

Vote every single incumbent out now and every election going forward until this ends. Take care to be sure that when you throw the current bum out you are not replacing him / her with just another political hack who was waiting in the wings. The most important votes will continue to happen in the primaries. The last one produced hacks like Kirk and Gianoulias but we can still send the message this fall and in the future.

LINK

Pat Duggan with thanks to a friend for the story link.

Dick Morris: Obama is incompetent

Dick Morris has a catchy headline: “Obama doesn’t have a clue.”

Read his column here: LINK

Dick imagines himself smarter than the Democrats he worked for and has made a name for himself as one of their chief critics. I find his observations frequently enlightening but he misses the mark several times here. We are not surprised that Obama is incompetent. His total lack of relevant experience-either administrative or private sector-was one of his main shortcomings and the way the mainstream media ignored it was infuriating. By election day the story was that he ran such a great campaign he could surely handle the presidency.

Morris writes: “He doesn’t know how to stop the oil from spilling. He is bereft of ideas about how to create jobs in the aftermath of the recession. He has no idea how to keep the European financial crisis contained. He has no program for repaying the massive debt hole into which he has dug our nation without tax increases he must know will only deepen the pit.”

The problem isn’t that Obama doesn’t “know how” to plug the oil leak-the experts at BP clearly don’t either. The problem is that Obama views business-all business-as the enemy. As I have noted, BP caused this mess, but at this stage of the crisis the Obama administration should be working with BP. Instead they are doing the only thing they know how to do: attack the big bad business entity. They should be working with BP and engaging all the other big oil companies to help. They all can benefit from a quick solution or be damaged by the fallout.

As for the financial crisis unfolding in Europe this is classic liberal behavior. They cling to their socialist ideology and pseudo-Keynesian economic theory in spite of the historic evidence. Both are consistent failures. Obama dare not speak the solution for Greece and the rest of the “PIIGS”. Bring government spending and public sector unions under control and implement pro-business policy? If then forced to take this advice he’d have to completely reverse his entire agenda. He might even have to pull a “Specter” and switch parties.

Illinois is Doomed Unless…

“No”

“Non-vote”

That’s how Democrat state reps Keith Farnham and Jack Franks “voted” on the forensic audit resolution they sponsored. In spite of their supercilious backing of the resolution, Farnham voted against it and Franks “went to the bathroom”.

Read the full story here: LINK

Illinois is in deep financial trouble. Michigan and California are also. Democratic politicians refuse to acknowledge that raising taxes simply is not an option. Businesses are fleeing for other states. Overall populations are shrinking in some cases.

For a refreshing alternative look at what Chris Christie is accomplishing in New Jersey. The media and union members are apoplectic that he is not dancing to their tune.

Read the full story here: LINK

Published in: on May 27, 2010 at 2:25 pm  Comments (1)  
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