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Sunday, November 16, 2008
Paul Jacob :: Townhall.com Columnist
The next crisis, the next choice
by Paul Jacob
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The federal government has been lurching towards metastatic growth for some time. If recent bailouts provide any indication, that trend is set to continue. Barack Obama? Majority Democrats? Minority Republicans? Doesn’t matter. None have demonstrated a willingness to constrain growth.

They can’t even balance budgets.

The real question is not “do our current politicians want government to expand?” (they pretty much do), but “what happens when they can no longer expand government like they want?”

To answer that question, we may have to look to Hawaii.

What? Well, let me start again.

The problem of controlling government growth proves difficult enough at the state level — at the federal level it becomes much worse.

Politicians continually entice voters — especially as members of identifiable interest groups — to demand ever more government. Politicians do this because increased government activity is something they hope to use to leverage interest groups into supporting their re-election bids. And each increase in government appears as a political “success.”

A politician looks good when “his” or “her” program gets enacted . . . to help seniors, or “the middle class,” or “local business,” or “the children.”

The issues keep rotating, the better to ratchet up government growth at each turn.

But this process cannot simply go on forever. Even with the Federal Reserve in the federal government’s corner, inflating the money supply to exact a hidden tax, limits nevertheless exist to continual debt expansion. The government, increasingly, finds itself in a position very similar to that of a habitual credit card abuser.

At some point, maintaining the debt can no longer be budgeted in. And at that day of reckoning, something must be done.

But what? Democrats have been itching to raise taxes for some time. But will they see the danger in that course? Will they dare to do something more imaginative, more responsible?

Well, the state of Hawaii may provide a clue. Last year politicians in that state voted in a much-ballyhooed universal health insurance plan for children. It started up as a going concern eight months ago.

Then two “unexpected” things happened. Like most government benefit programs, this one, too, encouraged overuse. Parents who had been paying for health insurance for their kids saw a way to save money, dropping out-of-pocket coverage in favor of state-supported coverage. The drain on the coffers bounded over the predictions made by the system’s advocates.

And then the economy took a nosedive. Revenues went down.

So the state’s politicians blinked, argued, and . . . nixed the program.

This pattern may be repeated at the national level. Certainly we can expect a slew of shiny new programs of a quasi-socialistic nature. I mean, who won the election? Look at what he and they promised. Look at their histories.

But, hope alone cannot trump the limits of finance. We can expect those programs to cost more than predicted. And deliver less.

And, during a financial crunch, making the unsustainable even less so.

If we are lucky, politicians at the federal level will do what Hawaii’s politicians did. Their solution wasn’t “raise taxes,” it was cut spending. Hawaii’s politicians actually cut the universal health care program for kids. Nixed it. It is no more.

Hawaii is blessed with divided government: Both houses of the legislative branch are dominated by Democrats, but the governorship is held by a Republican, Linda Lingle. And it was she who, in news reports, received most of the honor (or blame) for cutting the too-expensive services.

Can we expect the incoming administration and the new, slightly shuffled batch of federal representatives — united under one party — to do that decent and rational thing?

Well, let me tell you, I never thought I’d be saying this, but I’m hoping that federal-level Democratic politicians are as responsible and clear-sighted as Hawaii’s divided partisans.

Talk about the audacity of hope.

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About The Author
Paul Jacob is President of Citizens in Charge. His daily Common Sense commentary appears on the Web, via e-mail, and on radio stations across America.
 
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Tornado, earthquake, typhoon
Paul; You can call it anything you want to, but whatever is coming, is coming. There's nothing like a good storm that will sweep away everything, some of the good, but a hell of a lot of the bad. Don't get me wrong, I'm not looking forward to this mess, but I know it's coming, and you know what? We caused it ourselves, by electing weak, power hungry politicians, whose only job is to bribe us with our own money, in order to get re-elected. The majority of the American people are, by nature, conservatives. But we have nurtured a hell of a lot of people who trully believe that they cannot survive without someone taking money from the productive and giving it to them, the non-productive. Even at the point of a gun. We've sold our birth-right to these politicians, and for what? Just because we could be bothered.

STATES AND TAXES
A study by the Joint Economic Committee
of Congress examined the economic growth
records in the 10 states that had raised taxes
the most in fiscal years 1990-1993 and the
10 states that had cut taxes the most over
that same period. The top 10 tax-hiking
states experienced almost no net increase in
jobs (3,000 on average), an increase in the
unemployment rate by 2.2 percentage points,
and a $484 real decline in personal income
per family of four. In contrast, the top 10 taxcutting states saw 653,000 net new jobs, an
increase in the unemployment rate of only 0.6
percentage points, and a $300 real increase in
personal income per family of four.

The contrast was even greater when only
income tax changes were considered. The top
10 income tax-hiking states experienced the
net loss of 182,000 jobs, a 2.3 percentage point
increase in the unemployment rate, and a $613
real decline in personal income per family of
four. The top 10 income tax-cutting states
saw 975,000 net new jobs, an increase in the
unemployment rate of only 0.3 percentage
points, and a $148 real increase in personal
income per family of four.

http://www.alec.org/am/pdf/ALEC_Competitiveness_Index.pdf

Obama's record: Never found a tax he didn't like while Illinois Senator.

Read and heed:
http://www.americansforprosperity.org/index.php?id=5103&st ate=il

Due to BO and his ideological pals in the Chicago Dhimmicrat Party, Illinois has the highest state sales taxes in the nation, the highest gas prices of the "58" states, crumbling highways, rampant gang war in the city of Chicago (Now the U.S. "Murder Capitol"), and an unemployment rate 20% higher than the national average.

Thanks to BO's election to POTUS, Illinois blue state "prosperity" will go nationwide.

If Republicans can communicate and follow the traditional GOP values of cutting taxes and
spending, Obamanomics could be over in 2010.

O
Professor Olsen of HAmline University denies he said the things you attribute to him. Open the attached site and go to the paragraph that begins DISCLAIMER:

http://law.hamline.edu/node/784

Thanks, Rick!
lol, I think I should probably start a militia instead.

New rule of the economy.
Rob from the poor taxpayers and give to the rich CEOs and union leaders and members.

Agendas, Conspiracies, and Evil
'The good hard working tax paying bible thumpin gun totin' or otherwise American citizens who live in a God-fearing country and believe in the U.S. Constitution written by God-fearing men are possibly being set up for the Rise and Fall of a great country called The United States of America by those who believe in globalism with an agenda and whose god is money with disregard for the lives of those they trample upon. There's "trillions" of tax dollars that are unaccounted for which they've redistributed to their wealthy friends who may have allegedly sent it over seas or into a off shore bank to protect themselves as they are wiping out the jobs and businesses and homes of a free country. They allegedly may want to bring this great country to its knees so they can chip you and lead you by the noses like slaves because most people believe the misrepresentations and don't even recognize the lies or listen to the words when they say, "If you build power plants, I'll bankrupt you." Or, "I'll skyrocket your electric bills." Or the U.S. Constitution is nothing more than a "Charter of negative laws." These public servants laugh at us when we ask for proof of citizenship according to the laws of the land and they laugh at us when we ask for accountability of the trillions of tax dollars wasted! They don't care, except for a few who are told to sit down and shut up!

Don't give Lingle too much credit
Paul, keep in mind that Linda Lingle is the one who ordered Obama's "birth certificate" sealed. Has anyone examined her bank account these days? Or was it in exchange for favors, like re-funding universal child health care with more of the taxpayers' money? At any rate history shows that socialism is always initially implemented by those who claim good intentions. But in order to ensure that all the government controlled programs function as designed, there must be control, and no dissent. If the socialists are incapable of quashing dissent for, as the Marxists call it, "the greater good" (meaning the survival of the totalitarian state), then more coercive measures are needed, and must be taken or the socialists will lose. Remember that before the Nazis took over in Germany, a weak, incompetent, socialist government had already been elected. When they proved too weak, Hitler was elected to create a strong Germany. Most Germans didn't have a clue what would result. They believed in the Thousand Year Reich and all the other slogans like "Change" and "Yes We Can". All of Obama's past history suggests that he was trained in radical methods. His mentors were and are radicals. His trying to turn freedom of the individual to selfishness, etc., are all indicative that he is capable of first asking for cooperation, and then coercing, first by legslation, then by use of force. Those who dissent from his arxist goals cannot be allowed to succeed, no matter what it takes. In the words of Milton Friedman, "Fundamental differences in basic values can seldom if ever be resolved at the ballot box; ultimately they can only be decided, though not resolved, by conflict."
Milton Friedman - Capitalism and Freedom

Never Surrender
As much as I hate to admit it, both moderate & conservative Americans must adjust to having Obama as President and respect the office--unlike the demonizing of Pres. Bush as the Liberals did for 8 yrs...or the rioting in the streets when they didn't get their way, like with CA's Prop. 8. However, we still have the power to uphold our principles.

Our first step is ensuring that in those states that still have to choose between a Republican or Democrat Senator, we must rise up, rally the voters, and protect the Senate's right to Filabuster when Congress tries to force a vote through on any of the 3 most intolerable changes -- The Fairness Doctrine, which will silence conservative talk radio; the Card Check or "Employee Free Choice Act" that takes away a worker's private ballot rights, and the Freedom of Choice Act (FOCA,) Obama's promise to end any restrictions on abortion, inc. partial birth abortions & parental notification laws, as well as funding foreign abortions. As soon as any of those laws (plus others equally objectionable) come under congressional consideration, all of us must not only contact our state representatives ourselves & raise He**, we must encourage any others of like mind to do the same things. We changed their minds about the Illegal Immigration Bill that way, & we can do it again.
EdieB

Sometimes You Just Have to Start Over
As a company grows bigger and bigger it can loose sight of its objective, to make a profit. This can happen when the many and large departments of the company become more concerned with their own predominance rather than the company’s. This is called mismanagement. When a company is mismanaged and spends more money than it makes it borrows money. If it continues to out spend its revenues it will go into receivership and better (hopefully) management restructures the company. The first thing to happen in restructuring a company, is to stop all the un-necessary (fat) expenditures. Then a determination is made if the company is viable. If determined to be so, new operating procedures and checks and balances are put into place to assure fiscal responsibility.

This procedure needs to be applied to governments that have lost sight of their purpose and begin to over feed them selves. Their purpose becomes self perpetuating and instead of serving the people it only feeds on them. At a certain point it becomes a beast with an insatiable appetite that the people can’t afford to feed. A restructuring is in order. It is too bad that there is no entity to order such a restructuring. The only ones to take action are the people. This is called a revolution.

Hee Hee
Is Jacob suggesting that the Democrats should ape the republican example of budget balancing of Reagan and Bush?

There may be a day that conservatives can accuse the democrats of not being fiscally responsible without deserving to be laughed at, but that day is still pretty far off.

The Obama administration needs to make up for a lot of bad republican policy, this include both out of control deficits and weak economic fundamentals. I would expect they will try to deal with the weak fundamentals first, as most serious economists have been recommending. And they will be greatful for the lack of budget balancing limits that the states are stuck with.

JUST WONDERING
Please, I'd like to know where all the Americans 'bought' their HOPE, I'd really like to get some too. And how much did it cost?
Oh..did you say it cost over $700 million for the initial dose? And it was 'sold' at the local radical store?
How much is the second dose then and where can I find it? Oh..did you say we got it already from the congressional store and it cost $700 BILLION, but we haven't been billed yet? Does anyone know if these doses of HOPE are addicting? Did you say they must be, for the doses to come cost a TRILLION a piece.
Sorry, I've 'CHANGED' my mind. I don't want any Hope afterall, I think I'll go buy a safe, a Bible and a gun--they are soooo much cheaper.

Ain't going to happen.
Sorry Paul, states have to balance their budgets, while the feds keep increasing debt. Doesn't matter if it's Democrats or Republicans (at least this current breed), they won't take the responsible route and reduce expenditures. Just look at the tens of trillions in debt that Social Security and Medicare find themselves. A National Health Care Plan will end up in the same situation. No politician wants to be the one to end the free lunches. They will all bankrupt this country rather than take away the free lunch.

Who's To Blame?
LISTEN TO THE ARGUMENTS AS TO WHO IS TO BE BLAMED FOR THE FAILURE OF EVERYTHING? THE REPUBS BLAME THE DEMS, THE DEMS BLAME THE REPUBS-------SO WHAT IS THE CONSTANT ELEMENT IN THE BLAME GAME. BY GOLLY, IT'S THE GOVERNMENT. DO NOT THE REPUBS AND DEMS=GOVERNMENT. SO WHY DO WE KEEP VOTING FOR THE SAME LOSERS WHO ARE TO BLAME AND EXPECTING CHANGE, NOT TO MENTION A "GOOD CHANGE" WAKE UP AMERICA, EVERYBODY THAT IS IN NEEDS TO BE THROWN OUT. THERE ARE SOME VERY ATTRACTIVE THIRD PARTY CANDIDATES, NAMELY, BALDWIN (CONSTITUTIONAL PARTY) and BARR (LIBERTARIAN PARTY). THINK ABOUT IT BEFORE WE ARE TOTALLY ENSLAVED, OR ARE WE ALREADY TOO LATE. NO, THERE IS STILL TIME. LET'S ROLL!!!!!

How Long Do We Have? Part II
Professor Joseph Olson of Hemline University School of Law, St. Paul, Minnesota, points out some interesting facts concerning the 2000 Presidential election:

Number of States won by: Democrats: 19 Republicans: 29

Square miles of land won by: Democrats: 580,000 Republicans: 2,427,000

Population of counties won by: Democrats: 127 million Republicans: 143 million

Murder rate per 100,000 residents in counties won by: Democrats: 13.2 Republicans: 2.1

Professor Olson adds: 'In aggregate, the map of the territory Republicans won was mostly the land owned by the taxpaying citizens of this great country. Democrat territory mostly encompassed those citizens living in government-owned tenements and living off various forms of government welfare...' Olson believes the United State s is now somewhere between the 'complacency and apathy' phase of Professor Tyler's definition of democracy, with some forty percent of the nation's population already having reached the 'governmental dependency' phase.

If Congress grants amnesty and citizenship to twenty million criminal invaders called illegal's and they vote, then we can say goodbye to the USA as a democracy in short order.

How Long Do We Have?
About the time our original thirteen states adopted their new constitution in 1787, Alexander Tyler, a Scottish history professor at the University of Edinburgh , had this to say about the fall of the Athenian Republic some 2,000 years earlier:
'A democracy is always temporary in nature; it simply cannot exist as a permanent form of government.'
'A democracy will continue to exist up until the time that voters discover they can vote themselves generous gifts from the public treasury.'
>From that moment on, the majority always vote for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship.'
'The average age of the world's greatest civilizations from the beginning of history, has been about 200 years'

'During those 200 years, those nations always progressed through the following sequence:
1. From bondage to spiritual faith;
2. From spiritual faith to great courage;

3. From courage to liberty;

4. From liberty to abundance;

5. From abundance to complacency;

6. From complacency to apathy;

7. From apathy to dependence;

8. From dependence back into bondage'



AMERICA: 7/4/1776 - 1/19/2009
Will it get worse before it gets better?
Well, it will get worse...

The Republicans lost the election because they screwed up. How did they screw up? By governing like Democrats! And somehow the solution is... more Democrats?

Obama will swerve so far to the left he will dislocate his shoulder in the process. Everything he does (raise taxes, add expensive regulations, give more power to unions, etc.) will make things worse. If he grants amnesty to illegals, America is done for, because the Democrats will then have enough guaranteed votes to never lose an election - no matter how badly they screw up. And they'll be in power after the census, enabling them to draw the lines of new congressional districts - in their favor. (Making D.C. the 51st state, and Puerto Rico the 52nd, will also help entrench Democrats.)

Meanwhile, the printing presses will be on 24x7, printing money to pay for everything. We'll see higher unemployment and higher prices. It will be a Jimmy Carter-like disaster. Yet the Dems will still win the elections, with the help of ACORN fraud and millions of new illegals turned into voters overnight. Don't think that's not the plan; the Obama-Pelosi-Reid triumverate (the "axis of OPRah") will most certainly use its power.

It won't be pretty.

I'm pulling a John Galt, or heading to the first state to seriously discuss secession. Producers are free to join me. Parasites will want to stay behind.

Check out:
http://www.colony14.net

Thebaron from PA...Keep Dreaming.
Very well put and true to the core...too bad the people of PA and the politicans don't see it now before it's perhaps too late. Maybe you should run for office in PA!!

Nationalized Healthcare
Dear Mr. Jacob,

We already have nationalized healthcare. Just go to the ER, where you'll wait hours in line behind mommies with their kids who have nothing wrong with them beyond a runny nose. ERs and inner city clinics are going bust, too, because the recipients would rather spend money on Lotto and cigars (cigars are apparently a cool way to hide pot) and alcohol than on an affordable catastrophic healthcare plan. Wait till ERs all across the country close. It's a trend.

And your doctors' offices? You don't exercise, you eat like doo, and you take statins? You overuse meds and don't do a thing for yourself? You're part of the problem, not part of the solution.

But wait! There's more! Medicare! There's no Hawaii solution for that! Seniors get gold-standard treatment - I've seen Medicare billed $900 for an orthopod to look at an X-ray that his office didn't even take. (There are lots more of those examples than $900 toilet seats, for those of you old enough to rememeber.)
Medicare will go bust, and ERs will close. That's as close to a national healthcare solution as we currently have.

You wanna know the real reason the Hawaiian system righted itself? Hawaii didn't have AARP for kids.

On the other hand,
Hawaii is not blessed with the ability to print currency.

PC at TownHall
Too funny! I just had to edit my post, because the word "p-i-m-p" is considered offensive. Are you kidding me? Is it offensive to my fellow conservatives, or to the "gentlemen of leisure" who might surf through the site and find the word in our posts?

Who's the moderator, Brent Bozell? Grow up! It's not like I said "f***" or anything else, it's "p-i-m-p", for crying out loud!

Unbelievable.

Obama delenda est.

Keep dreaming
Big-government solutions are now an accepted part of our political philosophy; they have been, with increasing numbers of adherents, since Hoover in 1929.

It is not limited to one party or the other, though the tendency is probably more likely to be found among the Democrats. But Republicans, too, p-i-m-p, starting with the nominal party head, President Bush. They just p-i-m-p to different groups.

I don't think this system can be undone through the ballot box. It will take a cataclysm of some kind, to bring it down. Failing that cataclysm, we will continue to vote for those who promise us our own specific solutions, sacrificing the bigger picture.

Jacob uses Hawaii as an example, I'll use Pennsylvania. Ed Rendell has grown the size of the Commonwealth's budget in his two terms, doubling it in size from what it was when he first took office. Did we vote him out? Did we select a tax-cutting fiscal conservative, even though we had that choice? No. We re-elected Rendell, and he resumed approving new spending, then coming back to us, the taxpayers, and extorting more money from us. The seniors voted for him, because of promises of more aid to seniors. Union members voted for him, because his administration promise to create jobs-even while raising our corporate taxes to the highest in the nation, driving more businesses out.

No, it will take a disaster, to stop this. Sad to say, but there it is. It's human nature. The drunk has to hit rock-bottom, before he can be treated. So it is with the contemporary American.

Obama delenda est.

Can you produce nothing ...
other than services and fiat currency and tax and spend yourself to prosperity?
Is there really all that much difference between republicans and democrats?
Is the average man as dull, greedy and foolish as are the wealthy?
Religious or not .... Proverbs ,,,
Where there is no vision the people perish ..

The problem here is demographics -
The poor immigrant class and minorities will continue p-i-m-p-i-n-g their votes to whomever promises them the most socialism. Do you really think for a moment that they care about responsibility? Sure -- kind of like in Rwanda, Mexico, and even the nothern European socialist counties. Check out the changing demographics. There's not a chance . . .

Lingle and Palin
Isn't it interesting that two of the foremost limited-government governors in the country are way off yonder in far-flung states ("barefoot and pregnant"?). Did I mention they were women? It seems the farther one gets from the Washington big-governement illuminati, the clearer one can see.

Dope
What are you smoking????

Too much to hope for
"Can we expect the incoming administration and the new, slightly shuffled batch of federal representatives — united under one party — to do that decent and rational thing?"

Short answer: No.

Long answer: Hell, no.

We've been in a descending spiral for decades.

When Democrats take power, they raise taxes; drive one or more demonized industries offshore, weakening the tax base; gut national defense (often while sharply increasing overseas commitments) to free up more money for transfer payments and public works; and let in more immigrants to receive those payments and vote for them.

After a while, we become disgusted with taxes, spending, waste, fraud, stagflation, and the high price of insecurity. So we vote Republicans in to put things right.

When Republicans take power, they try to remove some of the worst tax and regulatory burdens, restore national defense, and let in more immigrants to work for peanuts and vote Democratic. In exchange, they allow Democrats to continue spending wildly on transfer payments and public works. Too often, Republicans dip into the pork barrel themselves.

After a while, we become disgusted with taxes, spending, waste, fraud, and the high price of security. So we vote Democrats back in.

Unfortunately, with each cycle the country's financial condition deteriorates. Both parties seem perfectly willing to continue this pattern until tax rates reach 100 percent on everyone or the federal government defaults on its debt. They can't break the pattern, for it's what keeps them in power -- or in a position to retake power.

The only remedy that I can see is to evict everyone, Republican and Democrat, and start over. That won't happen, either.

Ha
The Democrats love to spend even more than the spend drunk RINOs. We will see spending rise dramatically over the next two years and along with that an increase in taxes and the cost of living even more. Just wait until Obama initiates his Cap and Trade energy plan, Universal Health Care, and his other socialist programs. The way things are going now we will have a $15 trillion dollar debt in 2 more years.

No Sir.....the Demorats
will NOT learn from Hawaii's example.....to use the credit card analogy, the FEDS spending under Obama will initially go "overlimit" exacting an overlimit fee, then the interest rate will increase. The payment will come in "late" or not at all...thus putting the FED budget into major credit counseling......large debt, not enough revenue.....and very high interest rates.....lol....

just watch what happens the next two years as the demoratic supermajority unfold and implement their fiscal policies......lol....enjoy the financial ride!
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