Keynes vs. Hayek
I know this video has already been widely circulated among Center-Right, free market-loving Americans, but I figured I'd better throw it up on my site just so I'm not considered an apostate of conservatism. It is pretty funny (and wildly creative).
Enjoy!
Krauthammer, Ryan, and Obama
In the past two weeks we have seen political fireworks in Washington D.C. over both the 2011 and 2012 federal budgets. The Obama-Pelosi-Reid Democrats that were in charge before January failed to procure a budget last year and that was what the whole hub-bub between President Obama and now-Speaker of the House John Boehner was about. That was what the controversial vote last week was all about.
But now we're moving on to the battle over Fiscal Budget 2012. The most promising and serious plan for not only 2012, but the next decade, comes from the office (and mind) of Rep. Paul Ryan (R-WI). Aptly named "The Path to Prosperity," Ryan's plan received attacks from the political Left before it was even released.
As only he can, syndicated columnist Dr. Charles Krauthammer assess the strengths of Ryan's economic road-map and the weakness of the counter-proposals being made by the president and leading Dem's.
Krauthammer begins his insightful piece by acknowledging the primary charge levied at the Ryan plan: it focuses on spending cuts and not on raising any taxes. Democrats say that while Republicans may talk a good game about dealing with our debt, the reality of our fiscal situation is such that we must adjust tax rates.
What say you, Chuck?
But the critics miss the point. You can't get there from here without Ryan's plan. It's the essential element. Of course Ryan is not going to propose tax increases. You don't need Republicans for that. That's what Democrats do. The president's speech was a prose poem to higher taxes – with every allusion to spending cuts guarded by a phalanx of impenetrable caveats.
Ryan reduces federal spending by $6 trillion over 10 years – from the current 24 percent of GDP to the historical post-World War II average of about 20 percent.
Now, the historical average for revenues over the last 40 years is between 18 percent and 19 percent of GDP. As we return to that level with the economic recovery (we're now at about 15 percent), Ryan would still leave us with an annual deficit in 2021 of 1.6 percent of GDP.
It's very simple: tax revenues must match budgetary expenditures. Right now, and for a long time, the latter has been higher than the former. We need a way to bridge the gap.
The critics are right to focus on that gap. But it is bridgeable. And the mechanism for doing so is in plain sight: tax reform.
Real tax reform strips out exclusions, deductions, credits and the innumerable loopholes that have accumulated since the last tax reform of 1986. The Simpson-Bowles commission, for example, identifies $1.1 trillion of such revenue-robbers. In one scenario, it strips them all out and thus is able to lower rates for everyone to three brackets of 8 percent, 14 percent and 23 percent.
The commission does recommend that, on average, about $100 billion annually of that $1.1 trillion be kept by the Treasury (rather than going back to the taxpayer) to reduce the deficit. This is a slight deviation from revenue neutrality, but it still yields a major cut for the top rate from the current 35 percent to 23 percent. The overall result is so reasonable and multiply beneficial that it rightly gained the concurrence of even the impeccably conservative (commission member) Sen. Tom Coburn.
That's the beauty of tax reform: It is both transparent and flexible. That flexibility and transparency can be applied to the Ryan plan. If you need a bit more deficit reduction to bridge the 1.6 percent GDP gap that remains after 10 years, you can get there by slightly raising the final rates.
Preach it, Dr. K!
Cut spending. Cut tax rates. Vote responsible people into office and hold them accountable.
Paul Ryan Explaining His Vision
Vision is everything if you want people to follow. A leader needs to know where he is going if he wants the rest of us to come along. Rep. Paul Ryan (R-WI) is more certainly a leader, and in this clip from the American Enterprise Institute Ryan casts a strong vision for America's future.
This is the type of politician we should be getting behind. Knowledgeable. Straight-forward. Clear-headed. Pro-free market.
Cowboy Poetry: So Necessary
As many of you already know, my personal favorite columnist is Mark Steyn. Mr. Steyn is syndicated around the world, but does most of his writing these days for National Review. In his most recent column, Steyn addresses the "spend early, spend often" mentality that modern liberal Democrats (across the country) have - regardless the financial state of their state or nation.
Last Tuesday, Harry Reid, the majority leader, took to the Senate floor to thunder that this town ain’t big enough for both him and the Mean-Spirited Kid (John Boehner).
“The mean-spirited bill, HR 1 . . . eliminates the National Endowment of the Humanities, National Endowment of the Arts,” said Senator Reid. “These programs create jobs. The National Endowment of the Humanities is the reason we have in northern Nevada every January a cowboy-poetry festival. Had that program not been around, the tens of thousands of people who come there every year would not exist.”
“Tens of thousands” would “not exist”? There can’t be that many cowboy poets, can there? Oh, c’mon, don’t be naïve. Where there are taxpayer-funded cowboy poets, there must surely be cowboy-poetry festival administrators, and a Bureau of Cowboy-Poetry Festival Licensing, and cowboy-poetry festival administration grant-writers, and a Department of Cowboy Poetry Festival Administration Grant Application Processing, and Professors of Cowboy-Poetry Festival Educational Workshop Management at dozens of American colleges credentialing thousands of cowboy-poetry festival workshop coordinating majors every year.
Steyn continues:
Well, it’s easy for me to mock Senator Reid...But what’s more difficult to figure out is why everyone doesn’t mock — and why Senator Reid (and presumably senior flunkies in the bloated emir-sized retinues that now attend our “citizen-legislators”) thought this would be a persuasive line of argument. This year, the NEA will be giving $50,000 toward the exhibition “Ranchlines: Verses And Visions Of The Rural West” in Elko.
What’s the big deal? It’s 50 grand, a couple of saddlebags in small bills. Not a large sum. But then when you’re Harry Reid staggering around in your trillion-gallon hat, it’s all small potatoes, isn’t it?
He and too many other Americans seem to be living their version of the old line: If you owe the bank a thousand dollars, you have a problem; if you owe the bank a million dollars, the bank has a problem. America owes the world $14 trillion, so the world has a problem.
What worries me most about things like the month-long, pro-union protests in Madison, WI is the utter lack of concern for the actual financial facts-on-the-ground. As Steyn alludes to, it feels as if the Left in this country have adopted an attitude that says "this fiscal mess isn't my problem...it's the world's problem...it's my grandkids' problem...I'm going to 'get mine' and the rest of you be damned."
The "Cowboy Poetry" example is just one of a thousand (or ten thousand) and so it seems insignificant, but we who live in Illinois know all-too-well that the very fact that there are thousands of such "insignificant" subsidies is the problem. This money adds up. The corruption involved in landing such subsidies and pet projects adds up. Pretty soon you have a (morally and fiscally) bankrupt state, one in which citizens slowly begin to realize that their only chance at a break is to either join in the corruption, or vote for the people who promise them the most "free" stuff.
Republicans, by no means, are not exempt from participation in this economic dog-and-pony-show. Voting for people with an "R" in front of their name on a ballot won't fix our fiscal woes.
Voting for candidates who walk the walk of free enterprise and fiscal responsibility will. Holding any and all we elect to office accountable for their policies and votes will.
Relying upon the entrepreneurial (and generous) spirit of the Americans people, instead of bureaucrats in Springfield and Washington D.C., most certainly will.
Krauthammer on union battles in WI, OH, and IN
Nobody does it like the German-hammer:
The magnificent turmoil now gripping statehouses in Wisconsin, Ohio, Indiana and soon others marks an epic political moment. The nation faces a fiscal crisis of historic proportions and, remarkably, our muddled, gridlocked, allegedly broken politics have yielded singular clarity.
At the federal level, President Obama's budget makes clear that Democrats are determined to do nothing about the debt crisis, while House Republicans have announced that beyond their proposed cuts in discretionary spending, their April budget will actually propose real entitlement reform. Simultaneously, in Wisconsin and other states, Republican governors are taking on unsustainable, fiscally ruinous pension and health-care obligations, while Democrats are full-throated in support of the public-employee unions crying, "Hell, no."
A choice, not an echo: Democrats desperately defending the status quo; Republicans charging the barricades.
Wisconsin is the epicenter. It began with economic issues. When Gov. Scott Walker proposed that state workers contribute more to their pension and health-care benefits, he started a revolution. Teachers called in sick. Schools closed. Demonstrators massed at the capitol. Democratic senators fled the state to paralyze the Legislature.
Dr. Charles continues:
Recognizing this threat to union power, the Democratic Party is pouring money and fury into the fight. Fewer than 7 percent of private-sector workers are unionized. The Democrats' strength lies in government workers, who now constitute a majority of union members and provide massive support to the party. For them, Wisconsin represents a dangerous contagion.
Hence the import of the current moment - its blinding clarity. Here stand the Democrats, avatars of reactionary liberalism, desperately trying to hang on to the gains of their glory years - from unsustainable federal entitlements for the elderly enacted when life expectancy was 62 to the massive promissory notes issued to government unions when state coffers were full and no one was looking.
Obama's Democrats have become the party of no. Real cuts to the federal budget? No. Entitlement reform? No. Tax reform? No. Breaking the corrupt and fiscally unsustainable symbiosis between public-sector unions and state governments? Hell, no.
We have heard everyone - from Obama's own debt commission to the chairman of the Joint Chiefs of Staff - call the looming debt a mortal threat to the nation. We have watched Greece self-immolate. We can see the future. The only question has been: When will the country finally rouse itself?
Amazingly, the answer is: now. Led by famously progressive Wisconsin - Scott Walker at the state level and Budget Committee Chairman Paul Ryan at the congressional level - a new generation of Republicans has looked at the debt and is crossing the Rubicon. Recklessly principled, they are putting the question to the nation: Are we a serious people?
Here's more from Chuck on Special Report with Brett Baier:
A Wild Weekend in Mad-town
Some of you may already know, but I was sent on behalf of Ricochet.com to cover the events surrounding the protests in Madison, WI Saturday. The battle between Governor Walker (R) and the teacher unions has been intense and garnered national attention for nearly a week. If you're still unclear about the details of this ideological clash, read this.
I submitted a two-part report of the day's events to the good people at Ricochet, which you can read below:
Part I: From Madison, With Love
Part II: More From Madison, WI
It was a fascinating experience, one I'm all-too-happy to share with my readers and friends. Part I has a YouTube montage of some of the better signs we saw, and Part II is a more in-depth and personal reflection on the people and ideas involved.
We are a better country when both sides of an ideological argument clearly articulate their respective position. Be ready to give an account for the things you say you believe.
More on the situation in Wisconsin to follow (because I am confident that similar showdowns are coming to a state near you).
Walter Williams and “Certificates of Performance”
Dr. Williams is a preeminent thinker and articulate defender of free market economics. This short YouTube video is a splendid example of the wit and wisdom of a man who (correctly) believes that the free market system is not only technically superior to big-government liberalism (we just say "socialism"), but morally as well:
Sowell’s Basic Economics
The folks over at Uncommon Knowledge continually churn out the most interesting interviews on the web. This week we're treated to another visit from Dr. Thomas Sowell, whose classic Basic Economics is back with an updated edition.
Enjoy Part 1 of the 5-part interview below:
Milton Friedman on Libertarianism
I feel that part of my duty to you, the reader, is to make sure you clearly understand the terms used in modern political and economic discourse. One of the most popular terms in the past two years is "libertarian." But what is a libertarian? What is libertarianism? How is it similar to conservatism? How is it different?
I can think of no one better to delineate all this (and more) than the late (and great) free market economist Dr. Milton Friedman. In a recently re-released interview he did with The Hoover Institution's "Uncommon Knowledge" host Peter Robinson, Dr. Friedman defines what he means when he labels himself a libertarian:
What do you think of Dr. Friedman's assessment of libertarianism? I'll be interested to hear your thoughts.
Happy New Year!
I Got Sowell, But I’m Not A Soldier
By: R.J. Moeller
You may grow tired of me saying it, but I never tire of blogging it: Dr. Thomas Sowell of The Hoover Institution (on Stanford University's campus) is the wisest conservative commentator/thinker alive today. The depth and breadth of his writing is astounding to a young wanna-be writer like myself. He is an economist by trade, but the man has a firm grasp on nearly any topic touching upon history, politics, culture, and intellectualism.
His column from yesterday does a splendid job of cutting through the jibber-jabber surrounding the battle for an extension of the "Bush" tax-cuts.
Let's face it, politics is largely the art of deception, and political rhetoric is largely the art of misstating issues. A classic example is the current debate over whether to give money to the unemployed by extending how long unemployment benefits will be provided, or instead to give "tax cuts to the rich."
First of all, nobody's taxes-- whether rich or poor-- is going to be cut in this lame duck session of Congress. The only real issue is whether our current tax rates will go up in January, whether for everybody or nobody or somewhere in between.
The most we can hope for is that tax rates will not go up. So the next time you hear some politician or media talking head say "tax cuts for the rich," that will just tell you whether they are serious about facts or just addicted to talking points.
Sowell continues:
Not only are the so-called "tax cuts" not really tax cuts, most of the people called "rich" are not really rich. Rich means having a lot of wealth. But income taxes don't touch wealth. No wonder some billionaires are saying it's OK to raise income taxes. They would still be billionaires if taxes took 100 percent of their current income.
What those who are arguing against "tax cuts for the rich" are promoting is raising the tax rates on families making $250,000 a year and up. A husband and wife making $125,000 a year each are not rich. If they have a kid going to one of the many colleges charging $30,000 a year (in after-tax money) for tuition alone, they are not likely to feel anywhere close to being rich.
Many people earning an annual income of $125,000 a year do so only after years of earning a lot less than that before eventually working their way up to that level. For politicians to step in at that point and confiscate what they have invested years of working to achieve is a little much.
It also takes a lot of brass to talk about taxing "millionaires and billionaires" when most of the people whose taxes the liberals want to raise are neither. Why is so much deception necessary, if your case is good?
Not convinced yet? Read the full column here, and get back to me with your thoughts.
The sense of entitlement (to your hard-earned money) that all Democrats (and, regrettably, some Republicans) display on a daily basis is shocking. More than that it is saddening. To know that I live in a free and prosperous country, one that has been so good to so many hundreds of millions of people who have come here and worked hard, and that among us are such significant numbers of people who actually think they deserve the fruits of someone else's labor (by legal force, if necessary)...that is a disheartening proposition.
Probably the most single influential written work in my own development as a conservative (outside of The Good Book) is Frederic Bastiat's The Law. In a clear and extremely readable way, the 19th century Frenchman walks you through where rights come from, why we form governments, how those governments are supposed to behave, and what ought to be done when even the government exploits and pollutes the rights of individual citizens. I think this section from The Law below is appropriate to the discussion Dr. Sowell began in his column above.
What, then, is law? It is the collective organization of the individual right to lawful defense.
Each of us has a natural right — from God — to defend his person, his liberty, and his property. These are the three basic requirements of life, and the preservation of any one of them is completely dependent upon the preservation of the other two. For what are our faculties but the extension of our individuality? And what is property but an extension of our faculties? If every person has the right to defend even by force — his person, his liberty, and his property, then it follows that a group of men have the right to organize and support a common force to protect these rights constantly. Thus the principle of collective right — its reason for existing, its lawfulness — is based on individual right. And the common force that protects this collective right cannot logically have any other purpose or any other mission than that for which it acts as a substitute. Thus, since an individual cannot lawfully use force against the person, liberty, or property of another individual, then the common force — for the same reason — cannot lawfully be used to destroy the person, liberty, or property of individuals or groups.
Such a perversion of force would be, in both cases, contrary to our premise. Force has been given to us to defend our own individual rights. Who will dare to say that force has been given to us to destroy the equal rights of our brothers? Since no individual acting separately can lawfully use force to destroy the rights of others, does it not logically follow that the same principle also applies to the common force that is nothing more than the organized combination of the individual forces?
If this is true, then nothing can be more evident than this: The law is the organization of the natural right of lawful defense. It is the substitution of a common force for individual forces. And this common force is to do only what the individual forces have a natural and lawful right to do: to protect persons, liberties, and properties; to maintain the right of each, and to cause justice to reign over us all.
I know this is a longer blog-post than I usually put up on a daily basis, but please stick with me here. This last excerpt from Bastiat is too important to gloss over.
He continues:
But, unfortunately, law by no means confines itself to its proper functions. And when it has exceeded its proper functions, it has not done so merely in some inconsequential and debatable matters. The law has gone further than this; it has acted in direct opposition to its own purpose. The law has been used to destroy its own objective: It has been applied to annihilating the justice that it was supposed to maintain; to limiting and destroying rights which its real purpose was to respect. The law has placed the collective force at the disposal of the unscrupulous who wish, without risk, to exploit the person, liberty, and property of others. It has converted plunder into a right, in order to protect plunder. And it has converted lawful defense into a crime, in order to punish lawful defense.
How has this perversion of the law been accomplished? And what have been the results?
The law has been perverted by the influence of two entirely different causes: stupid greed and false philanthropy.
That about sums it up, no? Stupid greed. False philanthropy. Advocates for re-distribution of wealth and "bigger government" (which by definition necessitates more taxes to pay for it) can only fall under one of these two headings. They are either wildly misinformed or they are wrapping themselves in labels of "compassion" and "justice" while knowingly voting for policies that hurt this nation's economy (and society), all so they can keep their positions of power.
Not all conservatives and Republicans are 'above reproach" moral actors, but if they support lower taxes, fiscal responsibility, entrepreneurship, limited government, adherence by the courts to Constitutional principles, private charity, and school choice they don't have to be saints. They do, however, happen to be right.


