EPA considers ammunition ban

August 26, 2010

The EPA is considering a ban on ammunition containing lead, which is to say, most ammunition.

UPDATE: It shouldn’t have even gotten as far as a public comment period, insofar as the law explicitly excludes ammunition from EPA regulation, and, moreover, we have the Second Amendment. But the EPA has done the right thing and reversed course, denying the proposal just two days into the comment period.

The NRA credits a public outcry, which I’m sure there was, but since when does the EPA care about public outcry? I’m sure they got orders to make this thing go away; the last thing Democrats need right now is to energize the gun-rights movement.


Worst traffic ever

August 25, 2010

China has a 60-mile traffic jam, a week-and-a-half old. People have been stuck for days.

When you’re done marveling at the vaunted competence of China’s central management (Tom Friedman, call your office), this would be an apt time to reflect on America’s wisdom (by which I mean the wisdom of our free markets) in moving freight by rail instead of highway.


Crony capitalism

August 25, 2010

The National Association of Broadcasters is lobbying Congress to require that FM radios be built into all cell phones.


Democratic-darling bank fails

August 25, 2010

The Hill reports:

ShoreBank, a Chicago-area community lender praised by Democrats, was taken over by the government Friday and its assets sold.

Chicago-area Democrats pushed hard for regulators to extend bailout money to the bank from the government’s $700 billion aid program. The bank, started in the 1970s, was praised by President Clinton and numerous other lawmakers and industry players.

In a statement late Friday, the Federal Deposit Insurance Corporation (FDIC) said it had taken receivership of the failed bank.

Whatever virtues ShoreBank might have had, being a good bank was apparently not one of them.


Mortgage aid program fails

August 25, 2010

President Obama’s loan modification program is a dismal failure:

Nearly half of the 1.3 million homeowners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.

The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday’s report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say. . .

“The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications,” said Mark Zandi, chief economist at Moody’s Analytics.

UPDATE: Stephen Spruiell explains that the program’s real purpose was never to aid homeowners, but Fannie and Freddie’s stockholders. So perhaps it wasn’t a failure after all.


How not to improve unemployment

August 25, 2010

The Obama administration puts fishermen out of work, deliberately, as a matter of policy. It’s part of a blatantly socialist plan to centrally manage the fishing industry.

UPDATE (11/13): I take it back. Iain Murray offers a compelling defense of the fishing rules. And I had forgotten about this.


Credit card rates soar

August 25, 2010

As predicted, the credit card “reform” bill has resulted in soaring credit card interest spreads (credit card interest in excess of the prime rate). Spreads are now at their highest level in 22 years. Democrats thought that people with good credit should subsidize those with bad credit, and they’ve gotten their wish.


Mosque imam glad of controversy

August 25, 2010

Is Feisal Abdul Rauf, the imam responsible for the Cordoba House project, really hoping to improve interfaith relations, as he claims? Or is he really trying to inflame interfaith relations in order to worsen perceptions of America abroad, as Victor Davis Hanson suggests?

Whatever his aims, certainly Rauf is accomplishing the latter, so we can get a good idea of his aims by looking at his reaction to the controversy. Does he lament how his project is hurting relations between Muslims and others? Nope:

The imam leading the construction of the so-called “ground zero mosque” said Sunday that the controversy surrounding the planned cultural center is a “sign of success,” the Associated Press reports.

Well then.

(Via Patterico.) (Previous post.)


Education Department won’t comment on Duncan-Sharpton appearance

August 25, 2010

Why is Education Secretary Arne Duncan speaking at a rally organized by infamous race hustler Al Sharpton? The Department of Education won’t say, and actually hung up on the Daily Caller when they called to ask.


This sign cost $10,000

August 25, 2010

Rep. Darrell Issa (R-CA) is on the case of the stimulus propaganda signs, which are even more wasteful than you might expect. The sign below, outside Dulles airport, cost $10,000. Several Inspector General investigations found that the signs were required.


Hostile takeover

August 25, 2010

Toomey defeats Specter (Pennsylvania). Lee defeats Bennett (Utah). Rubio defeats Crist (Florida). Paul defeats Grayson (Kentucky). Angle defeats Lowden (Nevada). Buck defeats Norton (Colorado). Scott defeats McCollum (Florida). Miller apparently defeats Murkowski (Alaska).

Across the country, insurgents are defeating establishment candidates in Republican primaries. Nearly all of them are favored to win in the general election. Hopefully the GOP establishment is getting the message. If the GOP returns to power, we don’t want a repeat of their fecklessness from the last time.


Administration fabricates peer review again?

August 23, 2010

The Obama administration claims that the NOAA’s recent assessment that three-quarters of the oil from the Deepwater Horizon spill is gone underwent peer review:

[NOAA Administrator] DR. LUBCHENCO: . . . The report was produced by scientific experts from a number of different agencies, federal agencies, with peer review of the calculations that went into this by both other federal and non-federal scientists.

and:

[Energy Czar] MS. BROWNER:  Can I just add another point?  This has all been — as Dr. Lubchenco said — been subjected to a scientific protocol, which means you peer review, peer review and peer review. You look at what the inputs are.  You look at what the models are.  All of this has been made available.

But, Bill Lehr, an NOAA scientist, is telling Congress that the report was released with peer review incomplete and the data are not yet being made available.

This would be the second time in recent weeks that the Obama administration has lied about peer review of a report dealing with the oil spill.

(Via Big Peace.) (Previous post.)


Michigan Democrat fabricates Tea Party candidates

August 23, 2010

A Democratic operative in Michigan has been caught submitting fraudulent candidate filings (warning: annoying auto-play video) to put bogus Tea Party candidates on the ballot.

(Via TaxingTennessee.)


Obama knew drilling ban would cost thousands of jobs

August 23, 2010

The Wall Street Journal reports:

Senior Obama administration officials concluded the federal moratorium on deepwater oil drilling would cost roughly 23,000 jobs, but went ahead with the ban because they didn’t trust the industry’s safety equipment and the government’s own inspection process, according to previously undisclosed documents.

(Via Mark Tapscott.) (Previous post.)


Presidential religion

August 23, 2010

When pollsters as questions on matters of fact, they nearly always report dismaying results. At first glance, then, there’s no reason to be particularly surprised by the recent poll showing that 18% of Americans think that President Obama is a Muslim. But is the question of Obama’s religion really a matter of fact?

For the record, I do not think Obama is a Muslim. But it is not necessarily ignorant to think he is. Pew’s question did not ask what Obama says is his religion, it asks what is his religion. Although I’m sure that some of the 18% is simply ignorant, I’m also sure that most of them believe he is lying.

ASIDE: Usually, a considerable fraction of the public despises the administration in office enough to believe nearly anything negative about them. The idea that Obama might be a Muslim is pretty mild compared to the 22% that believed in 2007 that President Bush knew about the 9/11 attacks in advance.

The press wants to treat this issue as a question of fact. Obama says he is a Christian, therefore he must be. MSNBC even goes so far as to say the fact that Obama gets Bible verses sent to his blackberry every day proves he is a Christian. For the press, Obama hits the sweet spot: religious enough not to damage his political prospects (if only they could get that stupid public to believe it), but not so religious as to actually affect his philosophy. Those guys, like George W Bush, are scary!

Personally, I don’t think that Obama has any well-defined belief system at all, Christian or Muslim. He says he is a Christian, but an interview he gave in 2004 shows he clearly is not, at least in any orthodox sense. I think he picked a church in Chicago for political benefit, and then spent years managing not to hear any of the hate preached from its pulpit. Having won the White House, he no longer saw any benefit to the trappings of religion, but with poll results like this and problems like the Cordoba House controversy, I think we will probably see him return to those trappings soon.


Blumenthal lies again

August 23, 2010

AP reports:

Already forced to apologize for saying he had served “in” Vietnam in the Marine Reserve rather than stateside, the state attorney general’s campaign for U.S. Senate is now being challenged to explain his assertion that he had “never taken PAC money” and has “rejected all special interest money.”

Federal records show that he has accepted $480,000 in political action committee money since he made that claim in January. Moreover, his Republican opponent, former World Wrestling Entertainment CEO Linda McMahon, points to nearly $17,000 Blumenthal received as a state legislative candidate in the 1980s — a figure Blumenthal’s campaign does not dispute.

I noted Blumenthal’s previous fabulism here.


The price of freedom

August 23, 2010

Now that the war in Iraq is officially over (as a practical matter it’s been over for two years) Randall Hoven summarizes its financial cost:

All told, the war in Iraq cost $709 billion, including foreign aid and training of local forces. That’s according to the Congressional Budget Office (p. 15). If you include the rest of the Global War on Terror (mostly Afghanistan), it brings the total to $1.1 trillion through 2010. That’s a lot of money to be sure, but despite what some on the left have said, it’s nothing compared to our gaping fiscal hole.

POSTSCRIPT: In fact, it’s worth recalling that for the last few years we’ve been spending more on stimulus boondoggles than on the war:


Tautology

August 22, 2010

How pathetic is the New York Times?

But many of Mr. DeLay’s actions remain legal only because lawmakers have chosen not to criminalize them.


You might be royalty if . . .

August 21, 2010

. . . your Aston Martin runs on bioethanol made entirely from wine.

My days of not taking Prince Charles seriously are certainly coming to a middle.


Blaming Bush jumps the shark

August 21, 2010

The DNC has pulled a laughable anti-Bush ad. Okay, the ad was just bad, but its deeper problem is the shelf life on blaming Bush has long since expired. In fact, Bush is more popular than Obama now, at least in the key districts Democrats would like to hold.

So what will be the Democrats’ national strategy? They can’t just attack Bush any more. They can’t ride Obama’s coattails; he is a net negative now. Issues don’t work: the Democratic recovery plan has failed, the public hates their health care nationalization bill, public support for Kagan is anemic, and what else do they have to say for themselves?


Cast in a bad light

August 20, 2010

Popular Mechanics: Compact fluorescent bulbs just aren’t very good, and LED bulbs are $30-$50 each. Soon they will be mandatory, though. So when is the right time to start hoarding incandescent bulbs?


Snark51

August 20, 2010

The Daily Caller takes a look at how the people who run the Cordoba House’s Twitter feed respond to criticism: sarcasm, vulgarity, and the occasional insult to Judaism.

Danny Glover, a new media strategist and editor of the Capitol Hill Tweet Watch Report, said that Park 51 hurt their brand far more by addressing criticism in such a manner.

“I think they clearly missed the boat,” Glover said. “The problem here is that you have someone trying to be snarky when you’re having a serious debate across the country about whether or not this mosque should be where they want it to be. So if you want people to debate serious issues like freedom of religion and free speech and you want people to take you seriously, then you have to tweet like an adult.”

(Previous post.)


Extreme

August 20, 2010

(Via Campaign Spot.)


With horses gone, Frank proposes closing barn door

August 20, 2010

Before the financial crisis, Barney Frank wanted to “roll the dice a little bit more” with Fannie Mae and Freddie Mac. Now that the damage has been done, Barney Frank thinks the time has come to abolish them. Better late than never, I guess.


Whoa

August 20, 2010

How much of a drag is President Obama on Democrats? An Obama endorsement is a net negative, even in Illinois!

(Via Campaign Spot.)


Obama visit snarls LA traffic

August 20, 2010

Los Angeles is seething after President Obama’s fundraising visit, reports the LA Times:

We have one word for you, Mr. President, the next time you want to sweep into Los Angeles late on a weekday afternoon: Helicopter. That way, you can avoid the streets the rest of us mere residents must use to get around.

President Obama’s fundraising mission in Los Angeles on Monday evening may have been a whirlwind trip for him, but it was a tedious slog for the thousands who found themselves in gridlock from the Westside to downtown.

Gateway Pundit had the story first.


Volt skeptics are “un-American”

August 20, 2010

Which party is it that likes to call their opponents un-American? Despite what the left likes to pretend, it’s nearly always the Democrats. For the latest example, I give you Michigan Governor Jennifer Granholm:

Q: And we know you’ve had the disaster in the Gulf, you’ve had an oil spill in your own state. You know, you guys are doing a lot in making these investments in batteries and in new care. And here you have people like Rush Limbaugh, come out and say that the Volt is an “overpriced lemon.” What do you say to critics?

GRANHOLM: It’s just un-American. I can’t believe that somebody would say this about this American product. He hasn’t even driven it. He hasn’t sat in it. You know, why wouldn’t you be supportive of American manufacturers building American vehicles with American workers, who now have jobs as a result of this.

If you don’t like an American car, you’re un-American. Wow, that’s a lot of un-American Americans.

(Via AutoblogGreen.)


Berwick’s disclosure incomplete

August 20, 2010

President Obama gave Donald Berwick a recess appointment to head Medicare in order to avoid public scrutiny. Now it seems that he may have more to hide than his radical views. The Washington Times has found that he failed to disclose several major donors to his foundation. His foundation, in turn, spends a significant portion of its budget on his pay.


Heh

August 20, 2010

Jim Treacher:

The NYT then cites a poll saying that 18 percent of Americans think Obama’s a Muslim. Which is ridiculous, because we all know he spent 20 years in a church where he didn’t hear a single thing the preacher said.


Legal risk

August 19, 2010

Democrats tend to pooh-pooh the idea that the American legal climate could be costing us business, but it’s happening.

(Via Instapundit.)


Death panel

August 19, 2010

It’s a brave new rationing world: Medicare is reportedly poised to refuse to cover Provenge, a new anti-cancer drug, arguing that although the FDA is has found it to be safe and effective, it may not be “reasonable and necessary”.

(Via Althouse.)


The Cordoba House

August 19, 2010

Feisal Abdul Rauf has every legal right to build his mosque. If he owns the land, he can build a mosque on it, and the government has no right to interfere. The effort to block the project by making it a historical landmark was wrong-headed.

In fact, it’s nearly always wrong to block construction by creating landmarks. That sort of landmark preservation comes about when people want to preserve a site but don’t want to pay to do so. If people want to preserve a landmark, they should buy it and preserve it. If preserving the landmark is not worth the price, then the developer’s use for the land is more productive.

However, Americans have every reason to be offended by the project. The site is not just near Ground Zero, it is arguably part of Ground Zero: it became available only because the old Burlington Coat Factory building was hit by part of a hijacked plane and damaged beyond repair. The project’s own proponents have said that the location’s connection to 9/11 is one reason it was selected. To use the site to celebrate the same religion that motivated the terrorists that attacked it is a grotesque irony. If Rauf were really interested in interfaith dialogue, as he claims, he would avoid such a provocation. With all the locations he could build a mosque, why insist on one that offends so many?

The project becomes all the more offensive when you look at who Feisal Abdul Rauf is:  Rauf is an apologist for Hamas. He blames United States policy for the attacks. And, he published a book with a revealing title: A Call to Prayer from the World Trade Center Rubble: Islamic Dawa in the Heart of America Post-9/11. An edition of the book was published in America (under a different title) with funding from Muslim Brotherhood front groups. Given who Rauf is, it seems all but certain that the project is a deliberate provocation.

So while the government has no place interfering with the project, society is right to be outraged and to bring social pressure to bear. What’s more, the public seems to understand the difference. According to a new poll, about two-thirds of New Yorkers agree with each sentiment.

Which brings us to President Obama. On Friday, Obama decided to wade into the controversy. He could have simply said what most Americans seem to believe: the mosque is a bad idea, but Rauf still has the right to build it. However, for some reason, Obama couldn’t bring himself to do that. (Transcript here.) Instead, he touched only on Rauf’s right to build his mosque, and gave no hint of any distaste for the project.

Everyone took his meaning; he was for the project. For instance, the New York Times story opened:

Obama Strongly Backs Islam Center Near 9/11 Site

President Obama delivered a strong defense last night of a proposed Muslim community center and mosque near ground zero in New York. . . After weeks of avoiding the high-profile battle over the center — his press secretary, Robert Gibbs, said last week that the president did not want to “get involved in local decision-making” — Obama stepped squarely into the thorny debate, leaving little doubt about how he feels.

(Emphasis mine.)

But Obama’s clarity didn’t last long. Sensing the fury of the public and of vulnerable Democrats, he quickly moved to obfuscate his position. The next day, he announced:

I was not commenting and I will not comment on the wisdom of making the decision to put a mosque there.

ASIDE: New York Times has duly airbrushed its story in light of Obama’s declarification, which is why you won’t see the final phrase there any more. You can see it in the Winston-Salem Journal’s version of the story. You can also see it, for now, in Google’s cache, which I’ve screenshotted for when it changes:

What did Obama really mean to say? Your guess is as good as mine, but I don’t think Obama was using his remarks just to agree with the conventional opinion. If he intended to disagree with conventional opinion, there are only three possibilities: (1) he approves of the mosque, as was originally reported by his supporters, (2) he thinks erroneously that Americans want the government to block the mosque, or (3) both. A fourth possibility, suggested by Byron York, is that Obama was fumbling an attempt at Bill Clinton’s rhetorical trick of making remarks that are simultaneously interpreted differently by different groups. None of those possibilities reflect well on him.

POSTSCRIPT: At least Obama recognizes that it’s okay to oppose the mosque. Not Nancy Pelosi; she says there should be an investigation into the mosque’s opponents.

POST-POSTSCRIPT: While all this is going on, Feisal Abdul Rauf is on a Middle East tour, paid for by the US State Department.


Even unions are anti-union

August 18, 2010

The United Federation of Teachers fires a staffer for trying to organize its staff:

In a move of stunning hypocrisy, the United Federation of Teachers axed one of its longtime employees — for trying to unionize the powerful labor organization’s own workers, it was charged yesterday. Jim Callaghan, a veteran writer for the teachers union, told The Post he was booted from his $100,000-a-year job just two months after he informed UFT President Michael Mulgrew that he was trying to unionize some of his co-workers.

The union reportedly said it was important that it be able to fire anyone it needed, and unionized employees would interfere with that. No word on whether they saw the irony.

(Via No Left Turns.)


Quote of the day

August 18, 2010

The misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all.

Joan Robinson, Economic Philosophy

(Via the Economist.)


Good grief

August 18, 2010

You can’t sing the national anthem at the Lincoln Memorial. (Via Instapundit.)


Lies, damn lies, and Paul Krugman

August 18, 2010

Paul Krugman is a liar. Moreover, as I have noted before, he is the worst kind of liar, a man who dishonestly accuses others of lying. Case in point: Krugman’s recent column attacking Rep. Paul Ryan (R-WI) as a “charlatan” and a “flimflam man”. For the record, Ryan is the only politician with a serious plan to solve our government’s structural deficit.

Krugman doesn’t like Ryan’s plan, but does he offer a serious critique of the plan? No. Instead, he offers a dishonest attack on Ryan’s integrity. In his column and two subsequent blog posts, he says Ryan is a “flimflammer” because he never got the CBO to score the revenue effects of his plan.

Megan McArdle notes that Krugman’s attack misses the mark, for several reasons:

  1. Ryan did request the CBO to score the revenue side, but the CBO declined because:
  2. The CBO does not do revenue estimates, the JCT does that.
  3. Ryan requested the JCT to score the revenue side, but the JCT does not do projections more than ten years out.
  4. Ryan’s office has been very diligent about responding promptly (within 30 minutes!) to questions. Krugman could have learned any of the above facts if he had simply called Ryan’s office to ask.

So who is the flimflammer? The man with the serious plan, or the man throwing around unfounded accusations who doesn’t even know how Congress estimates revenues?

But, rather than slink back into his hole, Krugman doubled down. He said that Ryan is still a flimflammer, indeed somehow is even more so, because — according to Krugman’s reading of Ryan’s response — Ryan didn’t ask for the 10-year estimate that JCT was willing to do.

McArdle, continuing her yeoman’s work, determined that Krugman’s second attack isn’t true either:

To be honest, I too found that passage ambiguous. Which is why I contacted Ryan’s staff, who were happy to clarify that yes, they asked the JCT to do a forecast, and JCT said no. I don’t understand why Krugman keeps diving deeper into these Talmudic interpretations rather than just calling to ask, when their phone number is easily available on their website. There are some questions that are easier to resolve by talking to a live human being than by re-parsing a report, and this happens to be one of them.

Ryan’s a nice guy. I’m sure he’d have been happy to take the good professor’s call.

Once again, Krugman was wrong, which he would have known if he’d made any effort at all to learn the facts.

ASIDE: Krugman, who has used over 1800 words in a column and three blog posts attacking Ryan, also mocked Ryan’s “snow storm of words” in his response. Ryan’s letter was less than 800 words long.

Setting Krugman’s serial libels aside, the substantive question is whether Ryan’s inability to get a JCT evaluation of his plan somehow makes it worthless. McArdle tackles that one as well:

Eakin [former director of the CBO] said that what Ryan had done seemed entirely reasonable: he did his own analysis, and then faced with a different model that conflicted with his results, said that he would be happy to tweak his numbers until he got either the spending side down, or the tax side up. Many policy proposals that have been marinating considerably longer than Ryan’s roadmap have to go through grueling marathons of tweaking and resubmission until they get a good score.

POSTSCRIPT: James Capretta, watching Krugman’s performance, adds that those who live in glass houses shouldn’t throw stones.


Fast train to nowhere

August 18, 2010

The Economist has an interesting article on why America’s system of rail freight is the best in the world (hint: deregulation had something to do with it), and how the president’s effort to repurpose it for high-speed passenger trains could ruin it.

In America, we use rail for freight and highways for passengers. In Europe, rail is used for passengers, and highways for freight. America’s system is the more sensible one: humans prefer to travel on their own schedule, and to do so quickly. In contrast, freight usually doesn’t care; the most important factor is cost. Keeping freight transportation cheap reduces the cost of nearly everything. Alas, freight trains don’t look cool.

How much are Americans willing to spend in increased costs for nearly everything, just in order to have cool-looking high-speed passenger trains? We may find out.


The Scourge of Trenton

August 18, 2010

National Review has a great story on how Chris Christie is winning battles to fix New Jersey.


Against the teachers’ union bailout

August 6, 2010

Even the Washington Post is against the bailout for teachers’ unions:

TO GOVERN is to choose, and nothing lays bare a government’s true priorities like the choices it makes about spending taxpayers’ money. In that regard, the Senate’s decision to spend $10 billion on education jobs this week is revealing — and deeply discouraging.

The crusade for an education jobs bill, led by the Obama administration and Democratic leaders in Congress, has always struck us as more of an election-year favor for teachers unions than an optimal use of public resources. Billed as an effort to stimulate the economy, it’s not clearly more effective than alternative uses of the cash. Yes, school budgets are tight across the country, but the teacher layoff “crisis” is exaggerated. In fact, as happens each year, many teachers who got pink slips in the spring have been notified that they’ll be hired after all. Many layoffs could have been — and indeed have been — avoided by modest union concessions.

As of last school year, the money for 5.5 percent of the 6 million K-12 jobs nationwide came from Washington through the 2009 stimulus; the new money reinforces this dangerous dependency.

What I like about this is the unmasking of the teachers’ unions, one of the key tribes that make up the Democratic party. For a long time the teachers’ unions have been generally well regarded by much of the public — they’re teachers after all! — despite the fact that they consistently work against the interests of students. Of course, this is the ordinary role of unions: to advance the interests of the union (and occasionally the rank-and-file) against the interests of the employer, but they’ve often been able to disguise that fact. For example, they use names (e.g., National Education Association) that suggest that they are education groups instead of labor groups. Now people are getting to see the teachers’ unions behaving like (gasp) unions, refusing even modest concessions while everything collapses around them.


GM’s political donations

August 6, 2010

The Washington Post reports:

When General Motors went through bankruptcy last year, it suspended its political donations. Now that it’s owned by the U.S. government, it’s donating to lawmakers’ pet projects again.

(Via Instapundit.)

Outrageous, yes. Surprising, no.


More zero-equity mortgages

August 6, 2010

Megan McArdle is aghast:

If you want to know why us libertarian types are skeptical of the government’s ability to prevent housing market bubbles, well, I give you Exhibit 9,824: the government’s new $1000 down housing program.

No, really. The government has apparently decided, in its infinite wisdom, that what the American economy really needs is more homebuyers with no equity.


Obama rumored to be planning bailout for underwater borrowers

August 5, 2010

Last December, the Obama administration gave Fannie and Freddie a blank check, planning to cover unlimited losses. With that blank check in place, rumor has it that President Obama is poised to use it to buy votes:

Rumors are running wild from Washington to Wall Street that the Obama administration is about to order government-controlled lenders Fannie Mae and Freddie Mac to forgive a portion of the mortgage debt of millions of Americans who owe more than what their homes are worth. An estimated 15 million U.S. mortgages – one in five – are underwater with negative equity of some $800 billion. Recall that on Christmas Eve 2009, the Treasury Department waived a $400 billion limit on financial assistance to Fannie and Freddie, pledging unlimited help. The actual vehicle for the bailout could be the Bush-era Home Affordable Refinance Program, or HARP, a sister program to Obama’s loan modification effort. HARP was just extended through June 30, 2011. . .

What is happening is that the president’s approval ratings are continuing to erode, as are Democratic election polls. Democrats are in real danger of losing the House and almost losing the Senate. The mortgage Hail Mary would be a last-gasp effort to prevent this from happening and to save the Obama agenda. The political calculation is that the number of grateful Americans would be greater than those offended that they — and their children and their grandchildren — would be paying for someone else’s mortgage woes.

Frankly, I think he is miscalculating, and that America will be outraged at another bailout. But that won’t get the money back.

UPDATE: A Wall Street Journal editorial argues that this probably won’t happen, but they sound less than completely certain.


DOJ diverts civil-rights damages to third parties

August 5, 2010

The lawlessness of the DOJ’s civil rights division under Eric Holder is breathtaking:

The Justice Department has found a new way to pursue civil rights lawsuits, using the powers of the Civil Rights Division not just to win compensation for victims of alleged discrimination but also to direct large sums of money to activist groups that are not discrimination victims and not connected to a particular suit.

In the past, when the Civil Rights Division filed suit against, say, a bank or a landlord, alleging discrimination in lending or rentals, the cases were often settled by the defendant paying a fine to the U.S. Treasury and agreeing to put aside a sum of money to compensate the alleged discrimination victims. There was then a search for those victims — people who were actually denied a loan or an apartment — who stood to be compensated. After everyone who could be found was paid, there was often money left over. That money was returned to the defendant.

Now, Attorney General Eric Holder and Civil Rights Division chief Thomas Perez have a new plan. Any unspent money will not go back to the defendant but will instead go to a “qualified organization” approved by the Justice Department. And if there is not enough unspent money — that will be determined by the Department — then the defendant might be required to come up with more money to give to the “qualified organization.” . . .

The new Civil Rights Division tactic represents a departure from a fundamental principle of such cases, which is the pursuit of justice on behalf of actual victims. “If the Department of Justice recovers funds for alleged civil rights violations, the money should go to compensate victims or to the Treasury,” says Bob Driscoll, who was a top official in the Civil Rights Division during the first two years of the George W. Bush administration. “The practice of the Civil Rights Division steering settlement funds to favored advocacy groups is at odds with both civil rights laws and common sense. If Congress wants to fund certain advocacy groups or set up grants for agencies to award in order to promote non-discrimination, it can. But allowing the Civil Rights Division to steer a defendant’s money to its ideological allies is offensive.”

(Via Hot Air.)


Feds admit storing body scanner images

August 4, 2010

Shockingly, the federal government has been lying about body scanner images:

For the last few years, federal agencies have defended body scanning by insisting that all images will be discarded as soon as they’re viewed. The Transportation Security Administration claimed last summer, for instance, that “scanned images cannot be stored or recorded.”

Now it turns out that some police agencies are storing the controversial images after all. The U.S. Marshals Service admitted this week that it had surreptitiously saved tens of thousands of images recorded with a millimeter wave system at the security checkpoint of a single Florida courthouse.

This follows an earlier disclosure (PDF) by the TSA that it requires all airport body scanners it purchases to be able to store and transmit images for “testing, training, and evaluation purposes.” The agency says, however, that those capabilities are not normally activated when the devices are installed at airports.

So when the TSA said images cannot be stored, what they meant was images can be stored, and that capability is routinely used by the federal government. Now TSA says they don’t use that capability. Are they telling the truth now? Certainly they’ve given us no reason to trust them.

Via Instapundit, who adds:

Whenever the government collects information, it lies about what it will do with it. This is a near-universal law.


Missouri rejects Obamacare

August 4, 2010

Missouri just held a vote on a ballot measure that would prohibit the government from imposing an individual mandate to purchase health care. It was almost entirely symbolic, since states cannot override the federal government, even when the federal government oversteps its constitutional powers. Still, it’s a very good indication of the voters’ opinion of Obamacare in a key bellweather state.

The result was a smashing verdict against Obamacare:

Ed Morrissey notes two other interesting facts about the vote. Interest in the proposition was high: more people voted on Proposition C than voted in both Senate primaries combined. Also, considerably fewer people voted against Proposition C than voted in the Democratic primary. At least 14% of Democratic primary voters either opposed Obamacare or declined to vote.

UPDATE: Opponents of Proposition C (i.e., Obamacare supporters) outspent supporters 4-to-1. (Via the Corner.)

UPDATE: Michael Barone does his thing.


Socialized medicine

August 3, 2010

Two new horrifying stories of the British National Health Service. President Obama’s appointment to run Medicare and Medicaid wants our health care to be run like theirs.


Rasmussen: Obama owns the economic mess

August 3, 2010

A new Rasmussen poll finds that (as John Hinderaker puts it) the sell-by date has finally passed on President Obama’s finger-pointing:

For the first time since President Obama took office, voters see his policies as equally to blame with those of President George W. Bush for the country’s current economic problems. A new Rasmussen Reports national telephone survey finds that 48% of Likely U.S. Voters now think Obama’s policies are to blame for the continuing bad economy, up three points from last month. Forty-seven percent (47%) say the recession that began under Bush is at fault.

In fact, as Hinderaker points out, this result may even overestimate the degree to which the public still blames President Bush since the two options were not parallel: Obama on one hand, and the recession that began under Bush on the other.


Post unloads Newsweek for $1

August 3, 2010

The Washington Post, which rejected two offers for Newsweek on ideological grounds, has sold the failed news weekly for $1 to Sidney Harman, the husband of Democratic representative Jane Harman (CA). (Harman also agreed to assume Newsweek’s debts.) Harman’s bid won out because he pledged to keep more staff than the other contenders.

The Washington Post is a publicly traded company. I wonder if we’ll see a shareholder lawsuit.

UPDATE: How Newsweek went wrong.


Obamacare lawsuit moves forward

August 2, 2010

The lawsuit against health care nationalization has passed its first hurdle. The judge hearing the case found:

The guiding precedent [on the Commerce Clause] is informative but inconclusive. Never before has the Commerce Clause and Necessary and Proper Clause been extended this far. At this juncture, the court is not persuaded that the Secretary has demonstrated a failure to state a cause of action with respect to the Commerce Clause element.

(Emphasis mine.) This is just what Randy Barnett has been saying.

(Previous post.)


Beware the peace dividend

August 2, 2010

Max Boot looks at the troubling history of post-war military contractions.


Geithner uses his own facts

August 2, 2010

FactCheck.org reports:

Treasury Secretary Timothy Geithner made a false claim about the size of government spending being proposed by the Obama administration.

On NBC’s “Meet the Press” July 25, he said the president is proposing spending “as a share of our economy” that is “lower” than it was during the Bush administration and “comparable” to what it was under Ronald Reagan. Neither claim is true.

The administration’s own estimates project spending next year that is higher as a percentage of the economy than in any year since the end of World War II. The average projected by Obama’s budget officials is significantly higher than the average under Reagan or Bush (father or son).

POSTSCRIPT: I would add that the 2009 budget, which they charge to President Bush, was actually prepared by President Obama.

UPDATE: I would also add that the last two years, in which the budget starts to fall, are the hypothetical estimates of years that are at least a year away. Older estimates had the deficit falling in 2010 and 2011 as well, but those estimates fell by the wayside by the time those years actually happened.

(Via TaxProf.)


Congress considers repealing 1099 provision

August 2, 2010

Politico reports:

House Democrats proposed repealing a piece of the health care overhaul Friday, a move designed to thwart Republican efforts to do the same thing and declare an early victory in their efforts to repeal the whole law.

Democrats proposed repealing new IRS reporting requirements that small business has warned would be overly burdensome. But they attached a new tax on Americans conducting business overseas— essentially a poison pill for Republicans who are unlikely to support a new tax.

I wrote about the 1099 provision last May. The Politico article assumes that the Democrats are in earnest about this, and simply differ from Republicans over whether a tax increase ought to be attached to the repeal. But that might not be the right assumption. Politico notes that the Democrats came up with their own proposal only when the Republican proposal was on the verge of passage:

The bill gives Democrats cover for not supporting a similar amendment that Republicans had planned to propose Thursday evening. It also would have repealed the new reporting requirements but would have had different ways to pay for it. Democrats blocked the amendment from coming to the floor when it became clear that it could have passed.

The other way to read this is as an attempt to block the repeal. Somebody put that provision into the bill for a reason. What could be the reason for so costly and unnecessary a provision? A good theory is it was to be the first step toward a VAT.

We don’t have to guess at the Democrats’ intentions. They considered the repeal under a special rule that required two-thirds support. If they try again under normal order and pass it, we’ll know they were in earnest. If they never get around to it, we’ll know they weren’t.

(Via TaxProf.)


Report faults Coast Guard in Deepwater Horizon disaster

August 2, 2010

Is the Coast Guard partly to blame for the oil spill disaster?

The Coast Guard has gathered evidence it failed to follow its own firefighting policy during the Deepwater Horizon disaster and is investigating whether the chaotic spraying of tons of salt water by private boats contributed to sinking the ill-fated oil rig, according to interviews and documents.

Coast Guard officials told the Center for Public Integrity that the service does not have the expertise to fight an oil rig fire and that its response to the April 20 explosion may have broken the service’s own rules by failing to ensure a firefighting expert supervised the half-dozen private boats that answered the Deepwater Horizon’s distress call to fight the blaze.

An official maritime investigation led by Coast Guard Capt. Hung M. Nguyen in New Orleans is examining whether the salt water that was sprayed across the burning platform overran the ballast system that kept the rig upright, changing its weight distribution, and causing it to list.

In light of this, questions are also being asked about President Obama’s deep cuts in Coast Guard funding.

(Via Hot Air.) (Previous post.)


Swamp remains undrained

August 2, 2010

Here’s an indication of how seriously the Democratic leadership takes Charles Rangel’s (D-NY) criminal conduct:

Democratic leaders and major party donors plan to hold a lavish 80th birthday gala for Rep. Charles Rangel (D-N.Y.) at The Plaza Hotel in Manhattan next month, despite 13 ethics charges pending against the veteran lawmaker.

Lobbyists and other party donors received invitations this week to join Sens. Charles Schumer (D-N.Y.) and Kirsten Gillibrand (D-N.Y.) and New York Gov. David Paterson (D) at one of New York’s finest hotels to celebrate Rangel’s birthday.

Gubernatorial candidate Andrew Cuomo and New York Mayor Michael Bloomberg are also listed as featured guests, according to an invitation viewed by The Hill.


White House seeks to monitor internet activity

August 2, 2010

The Washington Post reports:

The Obama administration is seeking to make it easier for the FBI to compel companies to turn over records of an individual’s Internet activity without a court order if agents deem the information relevant to a terrorism or intelligence investigation. . .

The administration wants to add just four words — “electronic communication transactional records” — to a list of items that the law says the FBI may demand without a judge’s approval. Government lawyers say this category of information includes the addresses to which an Internet user sends e-mail; the times and dates e-mail was sent and received; and possibly a user’s browser history. It does not include, the lawyers hasten to point out, the “content” of e-mail or other Internet communication.

Of course, the government can already demand to know who you are talking to on the phone. That’s troubling, to be sure, but at least there is a limit to what they can learn from that, because there is a sharp distinction between the phone number and the content of the call. For electronic communications, such a distinction is very hard to maintain. For many communications (e.g., web browsing, or friend requests), the recipient of the message is the entire substance of the message.

Will those on the left who condemned the Bush administration’s policy on phone records step up to condemn this far-worse overreach? We will see who was honest, and who was just scoring political points.

(Via Hot Air.)


Liberals against diversity

August 2, 2010

Brian Seltzer, a reporter for the New York Times, tweets:

While working on conservative press/race story (http://nyti.ms/90TtFE) I pulled Nielsen #’s for African American cable news viewership…

Fox, as we all know, has biggest audience in prime time. But among African Americans, it’s smallest– 29k vs. 134k for CNN, 145k for MSNBC.

Matt Lewis of Politics Daily rebuts:

This of course, played into the “Fox is racist” meme, and, not surprisingly, Stelter’s words were retweeted many times (and also inspired several media blogs to further discuss Fox News’ lack of diversity).

Interestingly, though, the media site where Stelter primarily blogs (New York Times’ Media Decoder) suffers from the lowest percentage of African-American readers (4.6%) when compared to comparable media sites like Mediaite (5.8%), Gawker (6.4%), Mediabistro (9.2%), etc., according to Nielsen Media Research.

That’s fair enough — people who live in glass houses shouldn’t throw stones — but I think it’s the wrong rebuttal.

More to the point: everyone knows that African-Americans tend to be strongly Democratic. Also, everyone knows that Fox News is right-leaning (only slightly, but perceived as more so).  So it’s no surprise that African-Americans, like other predominantly Democratic groups, would not tend to be fans of Fox News. This is just a threadbare attempt to advance the failing idea that opposition to the Democrats is racist.

This smear doesn’t deserve to be taken seriously, but for a moment, let’s pretend it’s offered in good faith. We can all agree that it is racist to refuse to do business with any particular racial group. Fortunately, that kind of overt racism is all but stamped out in America today. What is suggested here is quite different. Seltzer is implying that when members of an underprivileged racial group decide not to partake of a business’s product as much as other racial groups do, that makes the business racist!

This is nonsense. A businessman sells a good or service that he thinks someone will buy. He doesn’t (or shouldn’t, anyway) care who that person is, as long as their money is good. Hardly any product will appeal to all demographics precisely equally. Were we to limit ourselves to such products, we would severely impoverish our society, thereby creating a bland, homogeneous marketplace in the name of “diversity”.

(Via Instapundit.)


Transparency is such a nuisance

July 29, 2010

The Democrats’ new financial regulation bill exempts the SEC from the Freedom of Information Act. The SEC is already using the provision to insulate itself from scrutiny.

The SEC’s web site (archived here) still talks about their commitment to the Freedom of Information act, but I imagine that will be airbrushed soon.


Everything is on the table

July 29, 2010

In regard to the president’s deficit commission, Glenn Reynolds remarks:

When they say “everything’s on the table,” they don’t really mean “everything, including elimination of the Department of Education, and privatization of Social Security, and a 15% across-the-board cut in federal payrolls.”

Or to put it more bluntly, when they say everything’s on the table, they are lying.


Nice work if you can get it

July 27, 2010

President Obama is taking four vacations in a little over a month. Hey, anything that keeps him out of the White House is fine by me.


Perspective

July 27, 2010

Our various stimulus boondoggles are more expensive than the war:

(From National Review.)


The Black Panther scandal investigation

July 27, 2010

Peter Kirsanow, a member of the US Commission on Civil Rights, has a piece discussing the Commission’s investigation of the Black Panther scandal. Its findings so far are damning.

(Previous post.)


Barbie is unhappy

July 26, 2010

Barbie, in Toy Story 3:

Authority should derive from the consent of the governed, not from the threat of force!

Reality:

The notion that governments derive their only just authority from the consent of the governed is a foundational principle of the American experiment. However, a new Rasmussen Reports national telephone survey finds that just 23% of voters nationwide believe the federal government today has the consent of the governed. Sixty-two percent (62%) say it does not, and 15% are not sure.


German firms flee Wall Street

July 26, 2010

Der Spiegel reports:

With expensive accounting rules, an increased threat of litigation and hundreds of millions of dollars in fines for some firms, the once prestigious New York Stock Exchange and other American markets have become unattractive to Germany’s biggest companies. Daimler and Deutsche Telekom have fled this year and the few remaining are likely to follow.

How sad is it that (at least in this regard) America’s free market is now weaker than Germany’s? Friedrich Hayek must be rolling in his grave.

(Via Instapundit.)


Early?

July 26, 2010

Timothy Geithner says we are early in the recession (!):

“Right now, the best thing the government can do…is help create the conditions for the private sector to start to invest in hiring again,” [Secretary of the Treasury Timothy Geithner] said. “Now, we’ve seen six months of positive job growth by the private sector. That’s pretty good,” Geithner said. “Pretty good this early in a recession.

(Emphasis mine.)

Early in the recession? Which would be scarier: if he doesn’t know what he’s talking about, or if he does?

(Via Hot Air.)


Disenfranchised

July 26, 2010

The Department of Justice is disinterested in protecting military voting rights.

UPDATE: More here, including:

Adams notes that the DoJ website has an entire section for felons looking to recover their voting rights, but nothing at all on MOVE. Their information on military voting pre-dates MOVE and is now inaccurate, Fox News reports, and the DoJ doesn’t appear to consider fixing that a priority.


White House backed Lockerbie bomber’s release

July 25, 2010

I’ve been hearing rumors about this for a while, but now it’s been reported in the London Times. Their article is behind a paywall, so here’s The Australian’s story:

Correspondence obtained by The Sunday Times reveals the Obama administration considered compassionate release more palatable than locking up Abdel Baset al-Megrahi in a Libyan prison.

The intervention, which has angered US relatives of those who died in the attack, was made by Richard LeBaron, deputy head of the US embassy in London, a week before Megrahi was freed in August last year on grounds that he had terminal cancer.

The document, acquired by a well-placed US source, threatens to undermine US President Barack Obama’s claim last week that all Americans were “surprised, disappointed and angry” to learn of Megrahi’s release.

Scottish ministers viewed the level of US resistance to compassionate release as “half-hearted” and a sign it would be accepted.

The US has tried to keep the letter secret, refusing to give permission to the Scottish authorities to publish it on the grounds it would prevent future “frank and open communications” with other governments.

If this is true (and it sounds like it is, since a major newspaper claims to have the correspondence), this is absolutely sickening. It’s one thing to have backed the release. But it’s quite another, having backed the release, then to pretend to be shocked and dismayed.

(Previous post.)

UPDATE: Originally I mistakenly said it was the Australian that had the correspondence, rather than the London Times. I’ve corrected the error.

UPDATE: The State Department has now released the letter. John Hinderaker reads it and thinks that it exonerates the administration:

Unless some contrary information comes to light, I consider this a non-controversy in which the State Department and the Obama administration acted honorably and appropriately.

I disagree. One can argue that the administration’s position, preferring compassionate release to prisoner transfer, is justified. However, the letter clearly failed to convey our opposition to Megrahi being released from Scottish custody at all. “The United States is not prepared to support” hardly sounds like full-throated opposition. I admit, I don’t speak Diplomat, but for a translation you can look to the Scottish reaction that found our opposition to Megrahi’s release to be “half-hearted”. So while the administration’s position may have been justifiable, it’s execution was certainly incompetent.

But all this is beside the point! It’s one thing for the administration to have reluctantly accepted the release. It’s quite another, once it happened, to pretend to be shocked and dismayed by it. That was neither honorable nor appropriate. It damaged our relations with the UK (again) for no reason other than to offer the Obama administration a little temporary cover.

(Previous post.)


Moratorium-gate

July 25, 2010

The Interior Department’s inspector general is investigating the falsification of the expert review of President Obama’s drilling moratorium:

In response to a request from Republicans on the House Natural Resources Committee, the Department of Interior’s acting Inspector General, Mary Kendall, announced she is opening an investigation into whether a Department of Interior report recommending an offshore drilling ban was manipulated to appear as if the ban was endorsed by seven experts from the National Academy of Engineers.

The report endorsed a six-month ban on deepwater drilling in the Outer Continental Shelf, and explicitly stated “the recommendations contained in this report have been peer-reviewed by seven experts identified by the National Academy of Engineering.” The National Academy of Engineers experts responded to the report by noting that their views had been misrepresented and that a drilling ban “will not measurably reduce risk further and it will have a lasting impact on the nation’s economy which may be greater than that of the oil spill.”

(Previous post.)


Health insurers scrap policies for children

July 24, 2010

As predicted:

Some major health insurance companies have stopped issuing certain types of policies for children, an unintended consequence of President Barack Obama’s health care overhaul law, state officials said Friday. Florida Insurance Commissioner Kevin McCarty said in his state UnitedHealthcare and Blue Cross Blue Shield have stopped issuing new policies that cover children individually. Oklahoma Insurance Commissioner Kim Holland said a couple of local insurers in her state have done likewise.

Starting later this year, the health care overhaul law requires insurers to accept children regardless of medical problems. Insurers are worried that parents will wait until kids get sick to sign them up, saddling the companies with unpredictable costs.

No one should be surprised by any of this. Of course insurers are going to stop writing policies for children! The new rules make them unprofitable. Family plans will survive (for now), because even those abusing the system will have to pay for the whole family, and probably the whole family isn’t sick. Existing policies will survive as well; those people aren’t abusing the system.

An unintended consequence? Perhaps. A predictable consequence? Definitely.

(Via Hot Air.)


The problem with going into court with no case

July 24, 2010

It doesn’t look good for the Justice Department’s lawsuit against Arizona:

“Why can’t Arizona be as inhospitable as they wish to people who have entered or remained in the United States?” U.S. District Judge Susan Bolton asked in a pointed exchange with Deputy Solicitor General Edwin S. Kneedler. Her comment came during a rare federal court hearing in the Justice Department’s lawsuit against Arizona and Gov. Jan Brewer (R).

Bolton, a Democratic appointee, also questioned a core part of the Justice Department’s argument that she should declare the law unconstitutional: that it is “preempted” by federal law because immigration enforcement is an exclusive federal prerogative.

“How is there a preemption issue?” the judge asked. “I understand there may be other issues, but you’re arguing preemption. Where is the preemption if everybody who is arrested for some crime has their immigration status checked?”

(Via Hot Air.)

UPDATE: But then, sometimes the tea leaves are wrong. . .


Public jobs cost jobs

July 24, 2010

Veronique de Rugy writes:

In this paper, published in Economic Policy Journal, economists Yann Algan, Pierre Cahuc, and Andre Zylberberg looked at the impact of public employment on overall labor-market performance. The authors use data for a sample of OECD countries from 1960 to 2000, and they find that, on average, the creation of 100 public jobs eliminated about 150 private-sector jobs, decreased overall labor-market participation slightly, and increased by about 33 the number of unemployed workers.


Public sector exempt from Social Security

July 24, 2010

I don’t know which is more shocking, that public-sector employers aren’t required to participate in Social Security, or that public-sector pensions are so insolvent that they’re thinking of giving up such a plum privilege.


The crux of the problem

July 24, 2010

Rasmussen reports that we truly are governed by an elite class at odds with the people:

A new Rasmussen Reports national telephone survey finds that 75% of Likely Voters prefer free markets over a government managed economy. Just 14% think a government managed economy is better while 11% are not sure. . .

America’s Political Class is far less enamored with the virtues of a free market. In fact, Political Class voters narrowly prefer a government managed economy over free markets by a 44% to 37% margin. However, among Mainstream voters, 90% prefer the free market.

Outside of the Political Class, free markets are preferred across all demographic and partisan lines. This gap may be one reason that 68% of voters believe the Political Class doesn’t care what most Americans think. Fifty-nine percent (59%) are embarrassed by the behavior of the Political Class.

ASIDE: Rasmussen defines the political class (4% of the population), as those whose answers to a set of questions show an affinity for government. The mainstream class (65%) answer the opposite way.

Rasmussen also notes an interesting gap between affinity for “capitalism” and “free markets”:

A Rasmussen Reports survey last year caused quite a stir by showing that just 53% of Americans prefer capitalism over socialism. That stat even made its way into a Michael Moore film. By April 2010, the preference for capitalism was up to 60%. However, there is still a significant gap between support for capitalism and support for free markets. While some politicians and economists use the terms interchangeably, just 35% believe a free market economy is the same as a capitalist economy.

One reason for the gap in support for capitalism and free markets is clearly the behavior of some large American corporations. Seventy-three percent (73%) of Americans believe that Goldman Sachs is likely to have committed fraud as charged by the federal Securities and Exchange Commission. Seven-out-of-10 Americans believe that government and big business work together against the interests of consumers and investors.


He was against it before he did it

July 24, 2010

John Kerry, 2004:

Sen. John F. Kerry (Mass.), the front-runner for the Democratic presidential nomination, frequently calls companies and chief executives “Benedict Arnolds” if they move jobs and operations overseas to avoid paying U.S. taxes.

John Kerry, 2010:

Sen. John Kerry, who has repeatedly voted to raise taxes while in Congress, dodged a whopping six-figure state tax bill on his new multimillion-dollar yacht by mooring her in Newport, R.I.

Isabel – Kerry’s luxe, 76-foot New Zealand-built Friendship sloop with an Edwardian-style, glossy varnished teak interior, two VIP main cabins and a pilothouse fitted with a wet bar and cold wine storage – was designed by Rhode Island boat designer Ted Fontaine.

But instead of berthing the vessel in Nantucket, where the senator summers with the missus, Teresa Heinz, Isabel’s hailing port is listed as “Newport” on her stern. . .

Cash-strapped Massachusetts still collects a 6.25 percent sales tax and an annual excise tax on yachts. Sources say Isabel sold for something in the neighborhood of $7 million, meaning Kerry saved approximately $437,500 in sales tax and an annual excise tax of about $70,000.

Just to be clear, Kerry’s not doing anything wrong by mooring his yacht in Rhode Island. He’s merely doing what anyone would do to avoid high taxes. The point is that Kerry is an idiot and a hypocrite.

The secondary point is the Massachusetts “sails tax” is stupid. It’s easy for people to move their boats, so what the tax does is push business out of state.

(Via Cato@Liberty.)


Congress eyes defense cuts

July 23, 2010

Our government is throwing trillions of new spending on every boondoggle imaginable, financed by tax hikes and monumental deficits, but they are looking to cut spending in the one area that really is a federal responsibility: defense.

I guess that means the world must be getting safer, right?

(Via the Corner.)


Berwick

July 23, 2010

President Obama came Donald Berwick a recess appointment to head Medicare and Medicaid, even though the appointment was not stalled, in order to avoid public scrutiny for his radical views. The Wall Street Journal has compiled a handy list of some of those views. (I can’t speak to the context of these statements, but given Berwick’s other statements, we have every reason to believe they are not out of context.)

For central planning, and against individual autonomy and markets:

  • “I cannot believe that the individual health care consumer can enforce through choice the proper configurations of a system as massive and complex as health care. That is for leaders to do.”
  • “The unaided human mind, and the acts of the individual, cannot assure excellence. Health care is a system, and its performance is a systemic property.”
  • “Please don’t put your faith in market forces. It’s a popular idea: that Adam Smith’s invisible hand would do a better job of designing care than leaders with plans can.”
  • “Indeed, the Holy Grail of universal coverage in the United States may remain out of reach unless, through rational collective action overriding some individual self-interest, we can reduce per capita costs.”

For rationing:

  • “It may therefore be necessary to set a legislative target for the growth of spending at 1.5 percentage points below currently projected increases and to grant the federal government the authority to reduce updates in Medicare fees if the target is exceeded.”
  • “A progressive policy regime will control and rationalize financing—control supply.”
  • “One over-demanded service is prevention: annual physicals, screening tests, and other measures that supposedly help catch diseases early.”
  • “The decision is not whether or not we will ration care—the decision is whether we will ration with our eyes open.” [This one is from here, not from the list.]

Health care should be run by bureaucrats, not doctors:

  • “I would place a commitment to excellence—standardization to the best-known method—above clinician autonomy as a rule for care.”
  • “Young doctors and nurses should emerge from training understanding the values of standardization and the risks of too great an emphasis on individual autonomy.”

Those last two are possibly the most chilling. Berwick is saying that we must provide one-size-fits-all care, and not give doctors (let alone patients) the power to do what they think is best.

This is the man who is now running Medicare and Medicaid.

But Berwick himself has no stake in the program; he has made arrangements never to need Medicare. His foundation, the Institute for Healthcare Improvement, has pledged to give him and his wife health care from retirement until death.

Berwick wants to ration care and to standardize care, but for everyone else, not himself.

POSTSCRIPT: Berwick’s foundation is a funny thing. In 2008 (the most recent year available), it received $12.2 million in revenue. (Republicans would like to know where that money came from, but since Democrats avoided holding a hearing for Berwick, they never had the chance to ask.) In that same year, it compensated him $2.3 million in pay and benefits. That’s nearly a fifth of the foundation’s entire revenue.


Obama loses to generic Republican

July 22, 2010

A new Quinnipiac poll:

A year after President Barack Obama’s political honeymoon ended, his job approval rating has dropped to a negative 44 – 48 percent, his worst net score ever, and American voters say by a narrow 39 – 36 percent margin that they would vote for an unnamed Republican rather than President Obama in 2012, according to a Quinnipiac University poll released today.

Unfortunately for Republicans, they can’t nominate an unnamed Republican. Anyway, I agree with Patterico that the remarkable thing here isn’t the result, but the fact that Quinnipiac would be willing to embarrass President Obama by asking the question. His stock certainly has dropped.


First-party payers

July 22, 2010

Set aside the moral issue of abortion for a moment, and just think of it as a medical-ish service. Dan Mitchell notes that the stability of the price of abortion illustrates the power of market forces, in contrast to the third-party payer problem for most health care:

Many people think that market forces don’t work in the health care system and that costs will always rise faster than prices for other goods and services. There are a few examples showing that this is not true, and proponents of liberalization usually cite cosmetic surgery [chart here] and laser-eye surgery as examples of treatments that generally are financed by out-of-pocket payments. Not surprisingly, prices for these treatments have been quite stable — particularly when increases in quality are added to the equation.

I just ran across another example, and this one could be important since it may resonate with those who normally are very suspicious of free markets. As the chart from the Alan Guttmacher Institute shows, the price of an abortion has been remarkably stable over the past 20-plus years. [Chart here.] Let’s connect the dots to make everything clear. Abortions generally are financed by out-of-pocket payments. People therefore have an incentive to shop carefully and get good value since they are spending their own money. And because market forces are allowed, the cost of abortions is stable. The logical conclusion to draw from this, of course, is that allowing market forces for other medical services will generate the same positive results in terms of cost and efficiency.


US Attorney firings “scandal” passes quietly

July 22, 2010

AP reports:

The Bush administration’s Justice Department’s actions were inappropriately political, but not criminal, when it fired a U.S. attorney in 2006, prosecutors said Wednesday in closing a two-year investigation without filing charges.

The decision closes the books on one of the lingering political disputes of the Bush administration, one that Democrats said was evidence of GOP politics run amok and that Republicans have always said was a manufactured controversy.

This was perfectly obvious from the first day of the supposed scandal: US Attorneys are political appointees who serve at the pleasure of the president, and they can be dismissed at any time for nearly any reason. The only way the dismissals could have been illegal was if the firings were intended to influence a case improperly, and no evidence ever surfaced to suggest that was the case.


Americans losing faith in Ponzi scheme

July 21, 2010

You don’t say:

A USA TODAY/Gallup Poll finds that a majority of retirees say they expect their current [Social Security] benefits to be cut, a dramatic increase in the number who hold that view. And a record six of 10 non-retirees predict Social Security won’t be able to pay them benefits when they stop working.

Skepticism is highest among the youngest workers: Three-fourths of those 18 to 34 don’t expect to get a Social Security check when they retire.

Actually, this seems low. A quarter of young people think they might get Social Security? Other than wishful thinking and/or ignorance, I can’t account for it. Social Security is already losing money, nine years early.


Obamacare is unconstitutional

July 21, 2010

Randy Barnett has been saying for some time that the Obamacare health insurance mandate, which institutes a penalty for inactivity, would be an unprecedented use of Congress’s interstate commerce power. At first his contention was mocked by Democratic legislators and law professors alike, but Barnett now seems to have won the argument without it ever seeing the inside of a courtroom.

Defenders of Obamacare have been shifting from the commerce clause to Congress’s taxation power to defend the law. Now the Obama administration is following along. The New York Times reports:

When Congress required most Americans to obtain health insurance or pay a penalty, Democrats denied that they were creating a new tax. But in court, the Obama administration and its allies now defend the requirement as an exercise of the government’s “power to lay and collect taxes.” . . .

Administration officials say the tax argument is a linchpin of their legal case in defense of the health care overhaul and its individual mandate, now being challenged in court by more than 20 states and several private organizations.

As the NYT notes, this is a significant shift from politicians who swore that the individual mandate was absolutely not a tax. Here’s President Obama (literally) mocking George Stephanopoulos for calling the individual mandate a tax (cue to 3:00):

Whether these statements will hurt the administration’s argument in court, I don’t know, but I’m sure they’ll be mentioned.

However, even if the court eventually finds that the mandate is a tax, not a penalty, Obamacare isn’t out of the woods yet. A new paper argues that the individual mandate is also unconstitutional as a tax. Their argument is as follows:

  1. The Constitution, as amended, provides for three sorts of taxes: (1) direct taxes, which must be apportioned by population, (2) excise taxes (also called indirect taxes in the legal literature, although the term does not appear in the Constitution), which must be uniform, and (3) income taxes, which must be on “derived income” (a term of art in the legal literature).
  2. The mandate is not an excise tax, as it taxes no particular activity and also is not indirect (i.e., it is not passed on to another party).
  3. If (counterfactually) it is an excise tax, it is unconstitutional because it is not uniform.
  4. It is not an income tax because it does not tax derived income.
  5. If it is a direct tax, it is unconstitutional because it is not apportioned by population.

Interesting.

(Previous post.)


Long-term unemployment soars

July 21, 2010

What would a completely failed economic policy look like? Pretty much like this, I’d say:

After you’re done gasping, also notice how the graph remains within the usual range until right around the beginning of 2009.


Abortion barred from state high-risk pools?

July 20, 2010

A few days ago it was revealed that at least two states (Pennsylvania and New Mexico) were covering abortion in federally funded high-risk health insurance pools. Now the AP is reporting that the Obama administration has issued rules barring such pools from covering abortion in most cases. If true, that’s welcome news. It would also be very surprising, coming from this administration, so I’m waiting to hear of a loophole.

Meanwhile, the Reproductive Health Reality Check, while bleating about how awful this is, underscores the fact that abortion funding is permitted under the health care nationalization law:

But here’s the catch, nothing in federal law actually restricts the use of federal or state money for abortion in PCIPs.

Recall how we were repeatedly told that the Hyde amendment would magically prevent any federal money from being spent on abortion. As I noted previously, that was a bald-faced lie. (The Hyde amendment only applies to Medicaid.) Now that the bill has been passed, the left has no reason to deny it any more.

(Via the Corner.)


The MassCare disaster continues

July 20, 2010

In a preview of what we can expect nationwide as Obamacare takes effect, Massachusetts firms are dumping their health insurance:

The relentlessly rising cost of health insurance is prompting some small Massachusetts companies to drop coverage for their workers and encourage them to sign up for state-subsidized care instead, a trend that, some analysts say, could eventually weigh heavily on the state’s already-stressed budget.

Since April 1, the date many insurance contracts are renewed for small businesses, the owners of about 90 small companies terminated their insurance plans with Braintree-based broker Jeff Rich and indicated in a follow-up survey that they were relying on publicly-funded insurance for their employees. . .

The Massachusetts Division of Health Care Finance and Policy annually surveys employers and found no significant drop in coverage as of the end of 2009, when more than three-quarters of companies offered health insurance.

But insurance brokers say the pace of terminations has picked up considerably since then among small companies, of which there are thousands in Massachusetts. Many of these companies — restaurants, day-care centers, hair salons, and retail shops — typically pay such low wages that their workers qualify for state-subsidized health insurance when their employers drop their plans.

(Via Power Line.)


Against fairness

July 19, 2010

The Economist has a column against the idea of fairness as an organizing principle for government.

A sense of fairness, as any parent knows, develops irritatingly early. A wail of “It’s not fair!” is usually the first normative statement to come out of the mouths of babes and sucklings. People seem to be hard-wired to demand fairness. Studies in which people are offered deals that they regard as fair and unfair show that the former stimulate the reward centres in the brain; the latter stimulate areas associated with disgust.

For the British fair play is especially important: without it, life isn’t cricket . . . The French have taken to using le fair-play in sport, presumably because (as their coach’s refusal to shake hands with his opposite number after losing to South Africa suggested) their own culture finds the concept rather difficult. When talking politics, however, the French, like the Americans, tend to go for the more formal notion of justice. But fairness appeals to the British political class, for it has a common sense down-to-earthiness which avoids the grandiosity of American and continental European political discourse while aspiring to do its best for all men.

I didn’t realize that this was a societal difference between America and Britain, but if it is, good for us. (And for France, I suppose.)

Fairness is a pernicious concept because it is totally subjective. It can mean anything to anyone, so it really means nothing at all. Consider two children: Alice (age 15) and Bob (age 10). Alice’s bed time is 10:30, and Bob’s bed time is 10:00. Both children are unhappy: Bob because Alice’s bed time is later, and Alice because when she was 10 years old her bed time was only 9:30. It’s not fair.

In politics, progressives tend to put things in terms of fairness: The rich aren’t paying their fair share of taxes. What exactly would be their fair share is never stated, but it’s always higher than they are paying now. (In 2007, the top 10% paid 70% of the income tax.) Free trade isn’t fair trade. (Whatever that means.) We need a Fairness Doctrine to shut down conservative talk radio.

ASIDE: Even when progressives use the word “justice” (e.g., “social justice”), they usually don’t actually mean objective justice, but some sort of subjective concept — which is to say fairness. We need to defend the word “justice”. The left has perverted the word “liberal” to the exact opposite of its historical meaning, we can’t let them have “justice” as well.

The author shies away from a full-throated condemnation of fairness, but I think all this what he is getting at in his conclusion:

Yet the fact that everybody believes in fairness is a clue to what’s wrong with the notion. Like that other warm-blanket word, “community”, it signals limp thinking. What exactly is “fair” about restricting trade, for instance? Or “unfair” about letting successful people in business or other fields enjoy the fruits of their enterprise without punitive taxes?

“Fairness” suits Britain’s coalition government so well not just because its meanings are all positive, but also because—like views within the coalition—they are wide-ranging. To one lot of people, fairness means establishing the same rules for everybody, playing by them, and letting the best man win and the winner take all. To another, it means making sure that everybody gets equal shares.

Those two meanings are not just different: they are opposite. They represent a choice that has to be made between freedom and equality. Yet so slippery—and thus convenient to politicians—is the English language that a single word encompasses both, and in doing so loses any claim to meaning.

Fairness is fudge. This newspaper will have none of it. We reject the wide, woolly notion of fairness in favour of sharper, narrower words that mean what they say, like just or cruel.


The tax man cometh

July 19, 2010

It turns out the health care nationalization act imposes a sales tax on real estate sales. A story in the Washington Post purports to debunk it, but actually just argues semantics:

  • It’s not a sales tax or a transfer tax, it’s a Medicare tax. Why I should care about the label is beyond me.
  • It doesn’t affect anyone making under $200k per year. First of all, taxes are a drain on the economy whoever pays them. Second, $200k is not $250k, the level at which Obama promised we would not face a tax increase. But, most importantly, sales taxes are invariably passed on to the buyer, so the fact that the tax is levied on the “rich” has no bearing on who actually pays it.
  • The tax is levied only on the profit. Untrue. More precisely, it depends on how you define profit. The calculation of profit doesn’t figure in inflation, nor does it figure in the amount spent maintaining the home (major improvements, on the other hand, are figured in), so one could easily end up paying the tax despite taking a loss in real terms. Indeed, if inflation soars in the coming years (as it seems like it must) most of the price of a home will be “profit”.
  • The tax is calculated using a very complex formula. Can’t argue with that one.

(Via Cato@Liberty.)


On the limited liability corporation

July 18, 2010

Stephen Bainbridge, who teaches law at UCLA and blogs at ProfessorBainbridge.com, has a great essay lauding the limited liability corporation, among other topics. It’s clumsy to download, so I’m reprinting the material on corporations after the jump.

Read the rest of this entry »


Health insurance rates skyrocket

July 18, 2010

Wait, I thought this wasn’t supposed to happen.


What hath Stupak wrought?

July 18, 2010

We already knew it was a lie that health care nationalization would not pay for abortions, but we didn’t (or, at least, I didn’t) know how many ways it would fund abortion, and how quickly that funding would start: Obamacare will be funding abortions in Pennsylvania and New Mexico beginning pretty much immediately.

That’s two of the four plans for which the National Right to Life Committee was able to find language, so there will surely be dozens more.


No reconciliation next year

July 16, 2010

Earlier this week, I wondered if, by passing a fake budget, Democrats were giving up the ability to ram legislation through the Senate using reconciliation. The Washington Independent says the answer is yes:

Recognizing that Democrats would be reluctant to record “yes” votes for a budget that would augment the deficit, the House leadership opted to deem as passed a “budget enforcement resolution” instead, just before the July 4 recess. While the distinction between an enforcement resolution and a full budget is largely technical, there is one crucial difference: Under the enforcement resolution, Democrats can no longer use a parliamentary tactic known as budget reconciliation next year — a process Democrats had hoped might allow them to pass key pieces of legislation, such as a jobs bill, with 51 votes in the Senate, as opposed to the usual 60 needed to overcome a filibuster.

The fake budget may be a bad thing in terms of the honesty of the budget, but I’d say this consideration outweighs that, particularly with the specter of a mad duck session on the horizon.

(Via the Corner.)


BP lobbied for terrorist

July 16, 2010

Another reason to despise BP (there are so many):

The oil giant BP faced a new furor on Thursday as it confirmed that it had lobbied the British government to conclude a prisoner-transfer agreement that the Libyan government wanted to secure the release of the only person ever convicted for the 1988 Lockerbie airliner bombing over Scotland, which killed 270 people, 189 of them Americans. . .

BP’s statement on Thursday repeated earlier acknowledgments that it had promoted the transfer agreement to protect a $900 million offshore oil-and-gas exploration deal off Libya’s Mediterranean coast. The British justice minister at the time, Jack Straw, admitted after Mr. Megrahi was repatriated and freed that the BP deal was a consideration in the review of his case.

(Previous post.)


Sheila Jackson-Lee: idiot

July 16, 2010

I’d say Sheila Jackson-Lee (D-TX) is pretty well disqualified from opining on history from now on:


Democrats oppose media access to oil spill

July 15, 2010

Mark Hemingway writes in the Washington Examiner:

Democrats refused to allow a vote today on an amendment introduced today by Rep. Paul Broun, R-Ga., to ensure press access to the gulf oil spill. Broun’s amendment was a response to numerous reports that government authorities and BP are keeping the press away from areas affected by the spill. The amendment reads as follows:

Except in cases of imminent harm to human life, federal officials shall allow free and open access to the media of oil spill clean up activity occurring on public lands or public shorelines, including the BP Deepwater Horizon oil spill.

Also, the Coast Guard says it has lifted its policy of keeping the media back from the spill, which is good but proves that such a policy did exist.

(Previous post.)


Bowles pans Obamacare

July 15, 2010

The handpicked co-chair of Obama’s debt commission is panning Obamacare:

The Democratic co-chair of President Obama’s fiscal commission said Wednesday that the president’s health care bill will do very little to bring down costs, contradicting claims from the White House that their sweeping legislation will dramatically impact runaway entitlement spending.

“It didn’t do a lot to address cost factors in health care. So we’ve got a lot of work to do,” said Erskine Bowles, former White House chief of staff to President Bill Clinton, speaking about the new health law, which was signed into law by Obama this past spring after a nearly year-long fight in Congress.


Government to subsidize litigation

July 15, 2010

Most everyone is getting their taxes hiked by this administration, but trial lawyers are getting their own special tax cut:

After years of filling Democratic coffers with massive campaign donations, trial lawyers are cashing in their chips with a sweetheart deal from the government that will save the industry billions of dollars over the next few years.

According to a Legal Newsline report from the annual meeting of the American Association for Justice, the nation’s lobbying arm for trial lawyers, the industry may get a tax break from the U.S. Treasury Department that would give trial lawyers the ability to write off expenses involved in contingency fee cases much in the same way businesses write off expenses. But unlike businesses, lawyers will benefit from the tax write-off in addition to the fee they charge clients.

“They’re trying to get the best of both worlds,” said Christopher Appel, an attorney in the public policy group at the Washington-based law firm Shook, Hardy, and Bacon. “It’s not really a business expense. It’s a loan made to the other person the attorney fully expects to get back.”

Congress shot down a similar provision in 2009 that would have given trial lawyers a tax break on contingency fee lawsuits. An analysis of the bill at the time concluded that such a measure would ensure the government pays up to 40 percent of the costs involved in filing lawsuits. Now, it appears the group will get the tax break without having to go through the legislative process.

This is an outrageous payoff for reliable Democratic supporters. It’s terrible from a public policy standpoint too: Our society is too litigious already, we should be trying to encourage a reduction in litigation, not subsidizing it.

Also, the Treasury department can give trial lawyers a tax cut that Congress refused them? How does that work?


Clock running out on war funding

July 15, 2010

The Pentagon is planning for the possibility that Congress will fail to fund the war:

The Pentagon is “seriously planning” for the possibility that Congress will not pass emergency war funding before lawmakers head to the August recess, said Pentagon Press Secretary Geoff Morrell.

The Pentagon is developing an “emergency plan” to deal with the lack of supplemental funds for the wars in Afghanistan and Iraq, Morrell said at a press briefing Wednesday. Morrell did not disclose any details of the plan, because Defense Secretary Robert Gates has yet to consider the options under that plan.

“Needless to say, all of this is extraordinarily disruptive to the department,” Morrell said. “But we’ve had some practice at this over the last few years. We’re sadly getting used to this fire drill.” . . .

While Congress was late in passing supplementals in the past, this year’s situation is much more difficult because most Pentagon accounts are on their “last legs” toward the end of the fiscal year.

Democrats are too busy usurping power for Congress to carry out its basic functions.


Government delays oil leak cap

July 14, 2010

AP reports:

After a day of delay, BP is again prepared to test a new cap fitted over the gushing Gulf of Mexico oil leak. National Incident Commander Thad Allen said at a Wednesday news briefing that testing will go ahead after 24 hours of carefully reviewing plans for the test. He said the testing would begin shortly.

The federal government had ordered the testing held up until BP could answer questions about whether the work could further damage the leaking well.

I suppose a mere one day delay is pretty good compared to the government’s record so far. Nevertheless, why not just go ahead with it? Could it really make the problem worse?

(Previous post.)


Space Shuttle getting a reprieve?

July 14, 2010

The Senate’s proposed NASA budget would keep the Space Shuttle running another year. I certainly hope so. The idea that we would depend on Russia for access to space is absolutely insane.

(Via Patterico.)


It’s not rocket science

July 14, 2010

Despite the recent (and belated) White House denial of NASA’s Muslim outreach program, there’s considerable evidence that it is real (or was real, anyway):

  • Rep. Pete Olson (R-TX), ranking Republican on the House Space and Aeronautics subcommittee, says NASA administrator Charles Bolden confirmed it to him.
  • Bolden has been talking about it for months.
  • The text of a speech by Bolden at American University in Cairo discussing the program is still posted on NASA’s web site.

Now Robert Gibbs says that Bolden merely misspoke? Give me a break.


The war on science continues

July 13, 2010

The LA Times reports:

Scientists expected Obama administration to be friendlier

When he ran for president, Barack Obama attacked the George W. Bush administration for putting political concerns ahead of science on such issues as climate change and public health. And during his first weeks in the White House, President Obama ordered his advisors to develop rules to “guarantee scientific integrity throughout the executive branch.”

Many government scientists hailed the president’s pronouncement. But a year and a half later, no such rules have been issued. Now scientists charge that the Obama administration is not doing enough to reverse a culture that they contend allowed officials to interfere with their work and limit their ability to speak out.

“We are getting complaints from government scientists now at the same rate we were during the Bush administration,” said Jeffrey Ruch, an activist lawyer who heads an organization representing scientific whistle-blowers.

Jonathan Adler adds:

This should not surprise. The “GOP War on Science” argument was always overstated and sought a partisan explanation for a phenomenon generated by broader institutional pressures and incentives. There were also early signs that the Obama Administration would replace science politicization of the Right with that of the Left.

I’ve noticed that academics often put inexplicable faith in Democratic politicians. Even those who have a healthy cynicism in other areas often seem to make an exception when it comes to Democratic politicians. They are genuinely dismayed when, inevitably, those Democratic politicians behave like weasels (even from the progressive perspective). And yet they repeat the same mistake all over again for the next guy.


Blowing the whistle

July 13, 2010

J Christian Adams is an attorney until recently with the Justice Department’s Civil Rights Division who resigned in disgust over the DOJ’s dismissal of the Black Panther voter intimidation case. Adams alleges that DOJ officials have made numerous inaccurate statements (some under oath) regarding what transpired. More broadly, he says that the Civil Rights Division is openly hostile toward race-neutral enforcement of civil rights laws.

Adams was ordered by his superiors at DOJ to disregard a subpoena from the US Civil Rights Commission. Now a private citizen, he has agreed to testify.

This story broke early in the Internet Scofflaw hiatus, so a lot has transpired:

  • Adams has an op-ed in the Washington Times.
  • Adams has a piece at Pajamas Media on the Civil Rights Division’s disdain for the civil rights of non-minorities.
  • Pajamas Media has collected statements from other former DOJ employees corroborating Adams’s allegations.
  • There is a video of Adams speaking to Fox News here.
  • Pajamas Media has copies of documents that attest to Adams’s good service at the DOJ, refuting the department’s efforts to smear him since he went public.
  • Adams alleges that Assistant Attorney General Thomas Perez lied under oath.
  • Finally, the Washington Times marvels that the mainstream media is ignoring this huge scandal.

(Previous post.)