You’ve made your bed…

I agree with Thomas Sowell’s latest column, High Risk, Low Yield, regarding recent Republican tactics. Especially this part:

The world is full of things that ought to be done but cannot in fact be done.

The time, effort and credibility that Republicans are investing in trying to defund ObamaCare is a high risk, low yield investment.

If I were Republican politician, I might say:

America, I hope Obamacare works out for you. But, if it doesn’t, remember, this is your own doing.

Soon, you may discover that Obamacare increases your health care costs and reduces quality and availability.

You may realize that you have less choice about health care than you did before.

You may find government bureaucrats have taken a keen interest in your personal health habits, to the extent you may feel violated and they may deem you not fit to receive priority care.

If you are bothered by any of that, you should consider who you voted for and why. If you want different results, perhaps you should think about voting differently and holding some frank discussions at the dinner table to help convince others you know to do the same.

A step in the right direction?

I’m open for opposing opinions, but at first blush the plan Obama outlined to change Fannie Mae and Freddie Mac seems like a step in the right direction.

Private investors take more of risk. Agree.

Fannie and Freddie lose the implicit guarantee of government. Agree.

While home ownership is good, affordable rental housing is also acceptable. Agree. Renting makes sense for a lot of folks.

Owning does too. You should have to prove you are responsible before owning, though. When people have a tough time getting a loan from a private investor to buy a home, those people should be encouraged to demonstrate responsible behavior.

The only part I had trouble with, so far, was that government would be secondary guarantor. That sounds like an explicit guarantee. Maybe I don’t understand that part.

But, again, a step in the right direction, no?

Could Obamacare be next?

In his speech outlining the plan, Obama quips that this plan will sound confusing for those that call Obama a socialist. For the record, I never thought he was a socialist. I just thought his view on the role of government was on par with public school sophomores. It’s not so much socialism, but the belief that solving problems can be easily accomplished by having government do something about it.

Jobs Report and Sequester Cuts

I watched the opening of SNL last night, which must have aired originally in February or March, because the first sketch was a President Obama impersonator explaining what will have to be cut from the budget due to the sequester.

My favorite mock cut was the astronaut who said they will no longer have visors in their space suits, so they’ll just have to hold their breath when they do space walks.

That also reminded me of a Wall Street Journal article (though I’m not sure is the original article that I read) this week that made a good point that the jobs report is pretty good a few months after the gloom and doom that was supposed to follow the sequester spending cuts.

(As a side note to WSJ.com editors, it is extremely tough to find an article that is more than day or two old. It’d be nice, especially for the opinion section, if you just had a calendar archive that listed links to the articles that ran on certain days.)

 

We get what we deserve

Here are some more on Obama’s remarks today from the New York Times:

“They [Republicans] will not collect a ransom in exchange for not crashing the American economy,” Mr. Obama vowed in the East Room, a week before his second inauguration. “The financial well-being of the American people is not leverage to be used. The full faith and credit of the United States of America is not a bargaining chip.”

And from the Washington Post:

In the final news conference of his first term, Obama said Republicans were threatening to hold “a gun at the head of the American people” and that he would not trade spending cuts, as Republicans demand, for an agreement to raise the federal debt ceiling.

“To even entertain this happening — of the United States of America not paying its bills — is irresponsible. It’s absurd.” He vowed that congressional Republicans “will not collect a ransom in exchange for not crashing the American economy. The financial well-being of the American people is not leverage to be used. The full faith and credit of the United States of America is not a bargaining chip.”

Now, I could address how ludicrous this is.

How, it reminds me of the type of fervent propaganda I learned about in places like the glorious\ Soviet Union.

Or, how these seem like mighty uncompromising words from a President who has bellyached a great deal about the other side’s inability to compromise.

Or, how dumb it is that the government has locked in a trillion dollar deficit, where they have turned a temporary stimulus spending level into the new government spending norm, where — after demonstrating abhorrent financial irresponsibility and avoiding making anything that appears to be a tough choice — they want an unlimited ability to write checks from ours’ and our children’s bank accounts.

But, I think we are well beyond all that. President Obama is becoming the classic example of we get what we deserve. 

And we’ll keeping getting it until we vote for adults who understand incentives that lead to prosperity, who can say no to special interests and balance a checkbook.

 

How Social Security can continue to be paid out without raising the debt limit

Here’s the New York Times reporting on President Obama’s remarks today:

“Treasury would be left to fund the government solely with the cash we have on hand on any given day,” he said, forcing it to choose among creditors, federal contractors, veterans,Social Security and Medicare beneficiaries and the many other claimants to federal dollars.

An enterprising reporter or Republican politician might do well to understand and point out what David Henderson has written on this topic here, where Henderson points to the Huffington Post’s debunking of the Social Security claim:

The Social Security Administration owns bonds that the U.S. Treasury has issued. To make up for a shortfall each month, the SSA could sell some of these bonds to the Treasury. But where would the Treasury get the money to pay for these bonds? By issuing bonds to the public. How could the Treasury do that if the debt ceiling is not raised? The debt ceiling includes the SSA bonds. So for every $1 billion the Treasury pays when the SSA redeems bonds, the Treasury could issue $1 billion in new bonds without affecting the official debt at all.

One part of the fiscal cliff

One part of the fiscal cliff is the US Government is again running up against its debt ceiling. That is, it is getting near the limit Congress has set for how much debt the government can issue to fund its overspending.

The debt ceiling was raised just last year.

In case you didn’t know, Obama’s gigantic flip-flop on this issue is well-documented, but not well-reported.

Then Senator Barack Obama voted against raising the debt ceiling in 2006 and spoke against it. Here’s the text from his speech (source):

The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that “the buck stops here.” Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.

Strong words. I agree with some of them. Especially the part about shifting the burden of bad choices (i.e. uncontrolled spending) onto the backs of our children and grandchildren.

President Barack Obama now calls his 2006 position a mistake (source). As his press secretary explained:

He realizes now that raising the debt ceiling is so important to the health of this economy and the global economy that it is not a vote that, even when you are protesting an administration’s policies, you can play around with, and you need to take very seriously the need to raise the debt limit so that the full faith and credit of the United States government is maintained around the globe.

Did you know about this? Imagine if a Republican had the same flip-flop. Do you think you would know about that?

Debt Junkie

I heard a sound-bite from President Obama on the radio this morning explaining how not getting rid of the debt limit is irresponsible because we shouldn’t put government in the position to default on its obligations.

A simple question that any news reporter should ask:

Mr. President, Wouldn’t it be correct to say that it’s government spending that has put the government in that “irresponsible” position?

Follow-up question: Wouldn’t it be irresponsible to continue borrowing to spend?

By the way, government debt is $15 trillion, which is 3 times the $5 trillion debt in place with W. took office and more than 50% higher than the $9 trillion when Obama took office.

El Debato

These are my limited observations from tonight’s debate, from the 10 or so minutes I saw before I nodded off for a nap.

Have you ever seen one of those letters composed from words cut from magazines? You know how the words are all different fonts and sizes and choppy? That’s how President Obama sounded to me tonight. I often couldn’t tell if the two words he just said were connected to previous sentence, the next sentence or stand alone.

I liked the first part of Romney’s response to the question about this country losing jobs overseas. He should continue to hammer this message home. The answer isn’t trickle down government, it’s to make the U.S. a more attractive place to invest.

Most economists agree, incentives matter. We — through government — chase those jobs away by making it less attractive to invest in America.

I didn’t care much for the second part of Romney’s response. If China devalues its currency to make its products cheaper, we benefit at the expense of the Chinese citizens. They should be up-in-arms about that. Not us. They will be some day.

The moderator seemed fair.

President Obama seemed surprised and a little disappointed that one of the questioners, Kerry, was not female, and judging from Kerry’s body language, not prone to be wooed Obama’s machismo.

Also, the President didn’t answer Kerry’s question, which was When did the Libyan embassy request extra security and who turned down that request? President Obama started his answer at the time of the attack.

I wasn’t clear on what Romney’s answer was on the assault weapon ban question. But, I don’t really care, either. President Obama said enough repeating the wisdom/ that guns kill people. He also demonstrated his lack of understanding of the second amendment when he said something about people having guns to hunt and (I think he said, I was nodding off) fish.

Yes. The 2nd Amendment protects our right to hunt and fish (who fishes with a gun?)./

No. It does not. It protects our right to protect ourselves from an oppressive government and other things that might encroach on our safety. It is one check-and-balance on power in a document that is full of check-and-balances.

I think the President also said something about eliminating mentally unstable people, or not eliminating them…not sure. It was one of those choppy moments. But, I think even he wished that he could ‘walk that one back.’

After I woke from my nap after the debate and was cleaning the kitchen, I heard some post-debate poll results.

One question was which candidate will help the middle class the most. If I heard right, the results were 54% to 30-something% in favor of President Obama.

Wow. I guess this may show the distrust some folks have for a rich guy and the love they have for a guy saying he’s going to pick that guy’s pocket.

However, I’d caution the 54% that you may want to favor the guy who is talking about making our country more attractive for investment. That will do more to help the middle class than any nutshell game. That makes as much sense as a football coach saying he’s going to win games by putting the best team on the field.

In case that 54% needs a little help with that, that makes a lot of sense.

Someone doing their job

 

I enjoyed McGurn’s opinion piece in the Wall Street Journal today, …Lehrer Got it Right.

Despite all-around criticism that last week’s Presidential debate moderator ‘let things get out of control’, McGurn described Lehrer’s response to the criticism.

“I’ve always said this and finally I had a chance to demonstrate it,” he told Politico. “The moderator should be seen little and heard even less.”

He followed up Monday on radio’s “Imus in the Morning,” saying he wasn’t in the least “apologetic” for how things went. In particular Mr. Lehrer insisted that it wasn’t his job to challenge Mr. Romney on issues favored by the cognoscenti…

“If somebody was going to challenge Romney about the 47%,” Mr. Lehrer said, “it was going to have to be . . . the president and vice versa. They were there to do the challenging.” What a novel idea: Instead of leaving it to the press to decide what issues take priority, let the candidates choose and go at it.

Bingo.

 

 

 

Links

The Wall Street Journal addresses President Obama’s comments, point by point. I’d like to see much more of this from the media with all sides of a debate.

Another week and another must-read from Thomas Sowell. As I read it, I imagined how the 24/7 news media would have treated a Republican doing, or not doing, these things.

Sowell goes further than merely pointing out some things that should cause a voter concern. He educates as to exactly why they should cause you concern.