"We didn't come this far not to get in"
-WWII veterans
I don't know about you, but I felt embarrassed and proud at the same time watching video of veterans that came to Washington DC in four busloads. Told by security they couldn't visit the WWII Memorial they pushed past - many in wheelchairs - and finished their Honor Flight Tour. God Bless those guys. They are the Greatest Generation and why we enjoy freedoms today. The closing of most national parks is part of a process where the stakes are so much greater.
But it was good to be reminded that some people have more skin in the game than others and we should be humbled into getting our act together and stop all the nonsense. By the way the administration knew these heroes were in route to the memorial but denied requests for a special exemption. These warriors faced down tougher opposition while rebuffing Hitler so they gave the barricades the bum's rush (as much as that could be done in motorized wheelchairs) and kept their appointment with history.
Phony Pangs of Protest
After September 11, 2001 the Statue of Liberty was closed as a matter of national security. The pedestal was reopened in August 2004 but the statue itself remained closed until July 4, 2009 with limited visitors. Then on October 29, 2011 the island was once again closed for visits in order to add elevators and fix the staircase. It reopened to the general public on October 28, 2012 only to close the next day after the east coast was slammed by Hurricane Sandy.
Finally the Statue of Liberty reopened on July 4, 2013 and now is closed again.
I get its important that one of the nation's greatest symbols of freedom remains open but the notion that its closure, often cited as one of the biggest problems with government shutdown, is a disaster for the nation is disingenuous at best. The fact is there are so many phonies out there whining about the shutdown and the closing of Lady Liberty that really wouldn't care otherwise. The statue has been closed 125 of the last 144 months and I don't recall it being called a disaster and certainly didn't see anyone one protesting.
There is a lot of disingenuous outrage today yet the partial shutdown isn't the end of the world. It could make the nation freer and provide more liberty from big, imposing government.
President Obama spoke of Congress passing a budget from the Rose Garden yesterday which was a major misnomer along with other comments about the latest crisis. The shutdown happened as a result of non-passage of a continuing resolution which is much different than passing an actual budget. That process begins with the president and then rightfully goes through Congress which has already abrogated much of its Constitutional powers to this administration. Back in May 2012 President Obama's budget suffered defeat in the Congress:
Senate 99 to 0
House 414 to 0
So we keep pushing along government spending through these continuing resolutions. They shouldn't be automatically rubberstamped nor allow for unrestrained spending. The Obama budget proposed for FY2013 of $3.8 trillion is $1.4 trillion ahead of the inflation-adjusted bill submitted by President Clinton for FY1997. The nation is in the midst of a partial government shutdown that probably brings government back to levels of only a few years ago. Considering incomes are down to levels of a few years ago it stands to reason government should mirror that reality.
The saga continues and there is now a chance this crisis dovetails with the debt ceiling debacle that makes October 17th the new midnight on the doomsday clock. Of course the media beat down is so intense that it was reported last night that 12 Republicans (all on the east coast) were ready to approve clean CR. I suspect the GOP will cave, say they fought the good fight and maybe find real resolve for the debt ceiling battle that could actually roil the markets (although it would only be for a short period of time).
Real Crisis
While the media continues to bend over backwards to provide cover for the White House, the real crisis in America gets short shrift-the jobs crisis. The ADP jobs report of 166,000 was less than expected (Street was looking for 180,000) reflecting a reality that underscores the central issue in America. This is a terrible recovery. If there was an economic explosion, the idea of millions without health insurance would be a non-issue, the notion of taxing the rich and those that dare to be extra-achievers and the Fed would turn off the printing press.
By the way, I heard Mark Zandi say he doesn't see the impact of Obamacare in today's report, but I see it. The transition from small to medium seems to have slowed dramatically as the pace of job increases for businesses with less than 50 employees was split between less than 20 and less than 50 when it's typically the latter driving the category. Medium sized business job increases matched the lowest level of the year. Ironically, it was large businesses that grew jobs at the fastest pace for the category this year.
Equities were already under pressure but could have traded higher if the ADP report beat consensus. Instead the results are a reminder of the real crisis that isn't going away anytime soon.
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