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	<title>Scott Spiegel &#187; budget</title>
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		<title>Incinerating a Hot Potato</title>
		<link>http://www.scottspiegel.com/2010/02/03/incinerating-a-hot-potato/</link>
		<comments>http://www.scottspiegel.com/2010/02/03/incinerating-a-hot-potato/#comments</comments>
		<pubDate>Wed, 03 Feb 2010 16:23:12 +0000</pubDate>
		<dc:creator>Scott Spiegel</dc:creator>
				<category><![CDATA[Economy]]></category>
		<category><![CDATA[banks]]></category>
		<category><![CDATA[budget]]></category>
		<category><![CDATA[deficit]]></category>
		<category><![CDATA[small businesses]]></category>
		<category><![CDATA[TARP]]></category>
		<category><![CDATA[taxes]]></category>

		<guid isPermaLink="false">http://www.scottspiegel.com/?p=2014</guid>
		<description><![CDATA[If deficit spending is the way out of an economic downturn, as leftist economists like Paul Krugman keep telling us, then one way to characterize President Obama’s approach to reviving the ailing economy is “killing it with kindness.”
Another is “tough love”—not the kind where you force hard choices and self-discipline, but the kind where you [...]]]></description>
			<content:encoded><![CDATA[<p>If deficit spending is the way out of an economic downturn, as leftist economists like Paul Krugman keep telling us, then one way to characterize President Obama’s approach to reviving the ailing economy is “killing it with kindness.”</p>
<p>Another is “tough love”—not the kind where you force hard choices and self-discipline, but the kind where you shoot the poor beast to put it out of its misery.</p>
<p>James Clyburn, House Majority Whip, recently crystallized the Democrats’ position on fiscal responsibility when he announced, “We&#8217;re not going to save our way out of this recession.  We’ve got to spend our way out of this recession, and I think most economists know that.”</p>
<p>Here are some fun facts about Obama’s proposed federal budgets over the next decade:</p>
<p>•    The projected deficit for Obama’s 2010 budget is $1.6 trillion, which is 10% larger than the 2009 deficit, which in turn was three times as big as the record 2008 deficit under President Bush.</p>
<p>•    The projected 2010 deficit is 10 times as large as the deficit for Bush’s 2007 budget, the latter of which included funding for the troop surge that won the war in Iraq.  Hoping to match our accomplishment in Iraq, the White House Travel Office has approved a trip for Obama to go to Cambridge, Massachusetts in November to get a Democratic dogcatcher elected in Harvard Square.</p>
<p>•    The projected 2010 deficit will render our national debt 13% bigger on the last day of this year than it is today.  Projected 2010-11 deficits will cause the debt to swell 23% bigger than it is now.  By 2020, the debt will be twice as big as it is today.</p>
<p>•    By 2013 the deficit will recede to $700 billion, a “mere” half of the 2009 deficit, then ratchet up again to $1 trillion by 2020.  Even this will happen only if Congress agrees to drastic spending cuts before 2013, which it has already expressed strong resistance to doing.</p>
<p>•    All of these numbers are conditional on what many private sector economists call overly optimistic expectations held by the current administration regarding growth of the economy.</p>
<p>These sobering statistics raise a number of tough questions about the measures Obama has proposed to bring down the deficit—which, naturally, he will never satisfactorily answer.</p>
<p>For example: in his budget address on Monday, Obama stated, “Because small businesses are critical creators of new jobs and economic growth, the budget eliminates capital gains taxes for investments in small firms and includes measures to increase these firms’ access to the loans they need to meet payroll, expand their operations, and hire new workers.”</p>
<p>Why only small businesses?  Why not medium and large businesses?  Who adds more jobs to the economy—Sal’s Pizzeria, a local franchise of Linens ‘n Things, or Microsoft Corporation?</p>
<p>Obama proposes letting the Bush tax cuts expire for families making over $250,000 a year.  He wants to impose a new tax—sorry, “financial crisis responsibility fee”—on banks and corporations who received TARP money, some of whom were forced by the administration to take it.  Obama wants to strip away tax breaks from oil and gas corporations.</p>
<p>Why would Obama want to choke the engines of growth and job creation by saddling them with tax increases?  If the absence of a $5,000 tax credit would hinder a small business from new hiring, what does he think the addition of hundreds of thousands of dollars in taxes to a corporation would do to their hiring?  Do big corporations hire workers out of the goodness of their hearts, with no concern for the bottom line?</p>
<p>Also, given that many of those families who make over $250,000 are headed by small business owners, how does Obama justify giving them tax credits while simultaneously increasing their taxes?  Is his administration even feigning consistency here?</p>
<p>History shows that cutting individual and corporate tax rates increases long-term tax revenue.  Obama was specifically asked about this proven fact by George Stephanopoulos during a primary debate with Hillary Clinton.  Obama stated outright that even if this pattern were true, he would still favor higher taxes on the wealthy to promote “fair” taxation.</p>
<p>Obama is free to endorse Marxist policies if he desires, but how can he turn around and claim that his proposal to increase taxes for the wealthy is an effective way to reduce long-term deficits?</p>
<p>When you’re handed a hot potato such as the sickly economy—a fate Obama has reminded us of precisely eight million times since he was elected office—the responsible solution is to let it cool down.</p>
<p>Instead, Obama proposes to cremate it.<br />
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		<title>Reconcile This</title>
		<link>http://www.scottspiegel.com/2009/09/02/reconcile-this/</link>
		<comments>http://www.scottspiegel.com/2009/09/02/reconcile-this/#comments</comments>
		<pubDate>Wed, 02 Sep 2009 14:13:33 +0000</pubDate>
		<dc:creator>Scott Spiegel</dc:creator>
				<category><![CDATA[Health Care]]></category>
		<category><![CDATA[bipartisanship]]></category>
		<category><![CDATA[budget]]></category>
		<category><![CDATA[Byrd]]></category>
		<category><![CDATA[Democrats]]></category>
		<category><![CDATA[Gregg]]></category>
		<category><![CDATA[health care]]></category>
		<category><![CDATA[insurance]]></category>
		<category><![CDATA[legislation]]></category>
		<category><![CDATA[New York Times]]></category>
		<category><![CDATA[Obama]]></category>
		<category><![CDATA[reconciliation]]></category>
		<category><![CDATA[Republicans]]></category>

		<guid isPermaLink="false">http://www.scottspiegel.com/?p=996</guid>
		<description><![CDATA[In anticipation of the humiliating defeat of their socialized medicine scheme, Democrats are feverishly working to get their legislation passed by cheating.
Their plan, known as “budget reconciliation,” works as follows: (1) have Senate committees expand Medicaid, cut Medicare, force individuals to buy and businesses to offer insurance, give subsidies to low-income people and tax credits [...]]]></description>
			<content:encoded><![CDATA[<p>In anticipation of the humiliating defeat of their socialized medicine scheme, Democrats are feverishly working to get their legislation passed by cheating.</p>
<p>Their plan, known as “budget reconciliation,” works as follows: (1) have Senate committees expand Medicaid, cut Medicare, force individuals to buy and businesses to offer insurance, give subsidies to low-income people and tax credits to small businesses, levy new taxes, and do everything else Democrats wanted to do in their health care bill but knew would never pass; (2) lump it all into a bill; and (3) pass it with 50 votes and no filibuster.</p>
<p>The bill would also contain language to support enactment of a health care overhaul, but because provisions unrelated to the budget cannot legally be included, the Senate parliamentarian will likely strike these from the bill.  According to the New York Times, which favors the reconciliation swindle, it is unclear whether two key elements will be allowed in the bill: the requirement that insurance companies accept all candidates and charge the same regardless of condition, and the creation of a government health insurance exchange.</p>
<p>The Times eggs Democrats on to declare that these two provisions, while irrelevant to the budget, “are so intertwined with other reforms that they are [necessary] for other provisions that do affect spending or revenues.”</p>
<p>If that ruse doesn’t work, the Times notes, then the process could “leave the reform package riddled with holes—perhaps providing subsidies to buy insurance on exchanges that do not exist, for example.”  In this eventuality, Democrats would pass a second bill, subject to filibuster, that fills in gaps where budget-irrelevant provisions were removed.</p>
<p>Ignore for the moment the fact that Democrats’ chess-playing skills obviously aren’t very good: to wit, why would Republican senators support a bill to prop up the reconciliation bill, if the two bills in combination would lead to an outcome they opposed in the first place?</p>
<p>Ignore, too, the stipulation that the reconciliation bill may not legally cause deficits to increase, which a health care overhaul clearly would do.</p>
<p>There’s just the inconvenient detail that reconciliation was never designed to be used for anything remotely like what Democrats propose to use it for.</p>
<p>According to the U.S. House of Representatives’ Committee on Rules, the purpose of budget reconciliation is to “fine tune revenue and spending levels.”  Admittedly, in the Obama era, adding a trillion-dollar program here or there could be characterized as “fine tuning,” but I don’t think this is what the creators of reconciliation had in mind.</p>
<p>Democrats have offered the following compelling argument for using reconciliation to socialize health care: Republicans have used reconciliation!</p>
<p>Yes, Republicans have used reconciliation—for things it was supposed to be used for, such as adjusting tax rates and decreasing entitlement spending.  Claiming that reconciliation can be used for health care because Republicans have used it is like claiming that pesos can be used at Taco Bell because Mexicans have used them.</p>
<p>Even the New York Times admits, “The approach is risky.  Reconciliation bills are primarily intended to deal with budget items that affect the deficit, not with substantive legislation like health care reform.”  Note the sneaky, dishonest addition of “primarily.”</p>
<p>As Judd Gregg explained to Norah O’Donnell, who insisted Gregg was a hypocrite because he had favored reconciliation in the past, “Reconciliation is meant to adjust already existing programs.  You adjust tax rates, or you adjust already existing programs at the margin.  What&#8217;s being proposed here is, ab initio, a brand-new, major initiative which is the total rewrite of the health care system of the United States.”</p>
<p>President Clinton floated the idea of using reconciliation to pass health care legislation in 1993, but Senator Robert Byrd reminded him that reconciliation was meant to be used to square away budgets, not turn us into Canada.  In 2003, Congressional Republican leaders considered, then rejected, using reconciliation to pass their prescription benefits program.</p>
<p>In 2005, Senate Republicans introduced a provision allowing drilling for oil in the Arctic National Wildlife Refuge, an attempt that failed when the provision was removed during reconciliation.  Whether this attempt was appropriate or not, it should be pretty clear that if we’re not allowed to use reconciliation to drill in a barren wilderness that makes up less than 0.5% of Alaska in the middle of an energy crisis and a war in Iraq, then it&#8217;s not appropriate to use budget reconciliation to take over 17% of the economy.</p>
<p>There’s a reason budget reconciliation was introduced as a separate parliamentary process: it was to be used to make adjustments to existing programs, not introduce massive new ones.  The total amount of debate time allowed for reconciliation is only 20 hours—about twice as long as Congress had to read the 1,600-page stimulus bill before voting, but still not very long.</p>
<p>By the way, I don’t fault Obama for threatening to violate the spirit of bipartisanship with the reconciliation maneuver, inasmuch as (1) I don’t favor Republicans in charge having to compromise when Democrats propose screwy ideas and (2) in order to put a halt to bipartisanship, Obama would have had to actually start practicing it first.  But it’s ironic that Congressional Democrats believe they are putting aside their longstanding, magnanimous display of bipartisanship by resorting to sleazy use of a tactic called “reconciliation.”<br />
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		<title>Delay Is No Longer Not an Option</title>
		<link>http://www.scottspiegel.com/2009/05/10/delay-is-no-longer-not-an-option/</link>
		<comments>http://www.scottspiegel.com/2009/05/10/delay-is-no-longer-not-an-option/#comments</comments>
		<pubDate>Sun, 10 May 2009 20:58:03 +0000</pubDate>
		<dc:creator>Scott Spiegel</dc:creator>
				<category><![CDATA[Obama]]></category>
		<category><![CDATA[budget]]></category>
		<category><![CDATA[Congress]]></category>
		<category><![CDATA[Crouch]]></category>
		<category><![CDATA[debate]]></category>
		<category><![CDATA[environmental]]></category>
		<category><![CDATA[healthcare]]></category>
		<category><![CDATA[Iraq]]></category>
		<category><![CDATA[President]]></category>
		<category><![CDATA[stimulus]]></category>

		<guid isPermaLink="false">http://www.scottspiegel.com/?p=206</guid>
		<description><![CDATA[In an unintentionally comic piece, Stanley Crouch claims, “On President Obama&#8217;s watch, patience is the ultimate virtue.”
Is he kidding?  To rephrase the expression, Barack Obama never waited a day in his administration.  (Up until the presidential campaign, &#8220;worked an honest day in his life&#8221; covers him pretty well, too.)
Obama would have nationalized healthcare, banned carbon [...]]]></description>
			<content:encoded><![CDATA[<p>In an unintentionally <a href="http://www.nydailynews.com/opinions/2009/05/04/2009-05-04_obamas_watch_patience_is_ultimate_virtue.html" target="_blank">comic piece</a>, Stanley Crouch claims, “On President Obama&#8217;s watch, patience is the ultimate virtue.”</p>
<p>Is he kidding?  To rephrase the expression, Barack Obama never waited a day in his administration.  (Up until the presidential campaign, &#8220;worked an honest day in his life&#8221; covers him pretty well, too.)</p>
<p>Obama would have nationalized healthcare, banned carbon dioxide, withdrawn from Iraq, and started a second New Deal while still in the “Office of the President-Elect” if he could have gotten away with it.</p>
<p>President “I want a stimulus package on my desk by January 20” Obama couldn’t be bothered with niceties like posting the bill online for 48 hours for voters to read, even though he waited four days after it passed to sign it.  In his quote from the week before the $800 billion boondoggle was brought to a vote—“We can’t afford to make perfect the enemy of the absolutely necessary”—by “perfect” he evidently meant “a bill with <a href="http://www.wikio.com/video/844732" target="_blank">completed wording</a>.”</p>
<p>Obama is just fine with Nancy Pelosi ramming “healthcare reform” through Congress with a simple majority by inappropriately using budget reconciliation to write it into law after the budget is approved.</p>
<p>President “Delay is no longer an option” is content to let the Environmental Protection Agency enact cap-and-trade regulations if Congress doesn’t pass them soon enough for his liking.</p>
<p>Our Hastener in Chief is willing to lose the war in Iraq so he can make sure combat troops are home in time for the midterm elections.</p>
<p>And President “Bow at the Waist” Obama just can’t wait until he and Fidel Castro, Kim Jong Il, and Mahmoud Ahmadinejad are on good enough terms that he can add them as Facebook friends, even though Castro hasn&#8217;t promised to confirm his request.</p>
<p>Crouch explains Obama’s leadership style thus: “He clearly understands that a democracy with many, many circles of power is prone to a slow velocity of policy achievements.”  Apparently Obama understands it well enough to cut Republicans out of committee meetings on the stimulus package, cut the American people out of a chance to look at and comment on the bill, cut shareholders out of hiring and firing decisions at automobile manufacturers and banks, and cut Congress out of passing environmental regulations.  That’s one way to deal with “many, many circles of power,” otherwise known by our Founding Fathers as “checks and balances” and “limits on rule.”</p>
<p>Crouch contrasts Obama’s administration with a dictatorial or totalitarian regime by explaining that in the latter, “Orders are given to go with a theory…  Physical threats can almost always guarantee compliance and the speed once called ‘greased lightning.’”</p>
<p>Let’s recount what orders Obama has served up so far to go with his “theories.&#8221;  There are the massive stimulus package and budget to go with the discredited theory of Keynesian economics.  There are the wasteful bailouts to go with the meritless theory that some companies are “too big to fail.”  There are the suicidal environmental regulations to go with the delusional theory of man-made global warming.</p>
<p>As for threatening those who do not follow orders, Obama has already set his staff on private citizens who might impede his progress (Rush Limbaugh, Jim Cramer), fired or intimidated CEOs who interfered with his plans (Rick Wagoner, Vikram Pandit), ordered creditors to accept lousy bankruptcy terms and warned that he would ruin their reputations if they didn’t comply, and issued a veiled threat against dissenters by implying that he might unleash the Department of Homeland Security as a bulwark against their dangerous right-wing tendencies.</p>
<p>Crouch sagely counsels, &#8220;It is always good for our nation to sit back, be patient, be determined, be disciplined and listen carefully to everything that is said.&#8221;  Sorry—who was it who didn&#8217;t have time to post the stimulus bill online for Americans to read so they could &#8220;listen carefully to everything that is said&#8221;?  Who is too busy to provide promised details on how the stimulus money is being spent so we can be &#8220;disciplined&#8221; and spend it wisely?  Who isn’t &#8220;patient&#8221; enough to let U.S. soldiers in Iraq finish their job and let Congress and the American people have a chance to debate nation-altering healthcare and environmental legislation?</p>
<p>Perhaps what Crouch really meant is that Obama’s &#8220;patience&#8221; is demonstrated by his willingness to wait a long time for our problems to be solved.  Maybe Obama believes that precipitous action is needed now, and then we can relax and engage in luxuries like &#8220;debate.&#8221;  But if these issues have allegedly gone unaddressed for so long and will take years or decades to resolve, then we can certainly afford to spend a mere few months discussing them.</p>
<p>Even Stalin probably didn’t institute one of his Five-Year Plans without sleeping on it.<br />
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