Federal aid to states versus a healthy economy

The theory behind federal aid to state and local governments is that the federal government can operate programs in the national interest to efficiently solve local problems.

Now that whole concept is laughable on the face of it. I’m not sure how any politician can even say that sentence with a straight face! When has the federal government ever operated more “efficiently” than anything with which it might be sensibly compared?

No. No! I don’t think this theory holds water on the “efficiency” factor.

But let’s take a look at this other matter of “programs in the national interest.”

Let’s be serious here!

Outside of those few matters for which the people should truly look to the federal government—such as our national defense—politicians do almost nothing from Washington, DC, “in the national interest.”

In fact, a great deal of the time and money spent by the staff of Congressmen and Senators is not, in fact, spent in “the national interest.”

Instead, they spend a huge portion of their time and energy on “local interests” and (worse) “special interests,” for which the reader might instead read:

“Securing ‘pork’ for their local constituents in every effort to leverage the taxpayers’ money to buy votes from the very taxpayers they have pick-pocketed.”

Federal aid to states and localities is nothing short of politicians hoodwinking the taxpaying public into believing that by giving some of the money they have confiscated from the taxpayers back through “aid,” they have somehow done the citizens a great favor.

In short, through federal aid to states and localities, the politicians have managed to trick voters and taxpayers into believing that, as “political doctors,” they can somehow magically make the patient healthier by draining blood out of the leg of the patient in massive amounts and injecting small portions of the blood back into the patient’s arm.

How about some good old political repentance from the GOP?

I think that there would be few things more beneficial to the Republican Party (GOP) than a general catharsis of heartfelt repentance among its politicians for their unprincipled behavior with regard to limited government, the U.S. Constitution, support for corporate bailouts, and their general propensity to succumb to pressure from special interests.

For GOP officeholders to simply stand before the public and say:

"We see where we are have gone wrong and have found that you, the people, are wiser than we thought we were.  Forgive us.  We are going to change our ways.  We are going to fight for YOU and return power to YOU and cease from our own corrosive power-seeking ways that have helped lead our nation to this brink of disaster and the collapse of sound government."

This would be a great thing, would it not? And it would, to a great extent, end the fears of erosion of GOP support by third-party conservatives.

On Unionist Lies and Solidarity

Every page of the history of the past 150 or more years belies the communist-unionist dogma that they are necessarily "internationally minded" and that there is an unshakable solidarity with the "workers of the world."

The very fact that unions in more highly developed economies—like the United States—are constantly active in lobbying efforts against opening immigration from lesser-developed economies proves that they are willing to condemn their “working brothers” (falsely so-called) in these poorer nations to a life of poverty and poor working conditions in order to protect their own privileged life of higher wages, better benefits and shorter working hours.

On the power of corporations, unions and other special interest groups

Corporations, special interests (groups) and lobbyists—bad as they may be—have no authority nor power to coerce a Congressional Representative or Senator to do that which hurts the taxpayer, damages the economy, destroys jobs, prolongs unemployment, increases the size of government or add to our deficit and public debt.

Only our elected representatives—only the politicians in Washington and our State houses—have the power to do these damaging things. Sadly, our elected officeholders come quickly to sanctify every act in pursuit of re-election above the sanctity of our U.S. Constitution or the good of the people and the American economy. It is by this wrong priority that the politician becomes readily “hooked” on the dollars offered to him or her by the special interests and take actions that damage the American republic.

Only WE, THE PEOPLE, have the authority to remove from office—by our votes—those officeholders who succumb to the siren sound of special interest money and influence.

Yes! It is WE, THE PEOPLE, through our own lack of vigilance to our duty, that have allowed the evolution of a federal government that has forgotten our Constitution, forgotten limited government, and forgotten the need for sound money. And, it is WE, THE PEOPLE, who can and must fix it.

Change your politicians often! They easily dirty, and generally do so very quickly!

Trade tariffs, protectionism and the damage done

Recently I have heard many folks make an argument for saving or restoring America’s manufacturing base by erecting protective tariffs. I believe we need to resurrect manufacturing in the U.S., but trade barriers is not the way to go about it.

Here’s why:

If American industry can manufacture a widget that would sell for $20, but a foreign competitor can manufacture an equivalent widget to sell for $10, frequently the widget industry (or an allied trade union) will ask Congress to put a tariff on imported widgets to "level the playing field."

So, let's see what that does to our economy.

This action means that every American now has to pay $20 for every widget. If it is made in the U.S., then some lucky Americans might get a better wage as a result. However, every American pays the price. The extra $10 that goes to the widget industry means there is less money for every other industry—less money for Americans to spend on fuel, food, housing, clothes, movies, and so on. So, a very small number of American benefit at the expense of every other American who wants or needs to buy a widget.

But, the case is even worse if the Americans actually prefer the foreign-made widgets. If the widgets are imported to meet demand, every American still has to pay $20 for a widget. Some of that money goes back to the foreign country where the widget was made; but the other $10—the tariff money—simply goes to the U.S. government and adds nothing to the producing economy at all.

And, since raising the price here in the U.S. means sales will be lower to the foreign country, the foreign country now has less money to buy American goods that it might otherwise buy from us. This, too, damages the U.S. economy and workers in every American industry.

Again every American is a loser as a result. Prices are higher on the products we buy and we can sell fewer goods and services to foreign nations. The size of our economy is diminished—all to protect one small group (a “special interest”), not Americans, in general, or the American economy.

It's a loss for everyone in the long run.

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For another view on what is really driving manufacturing jobs out of the U.S., read this article on how and why we pay the CEO’s of our nation’s publicly-held companies. We have met the enemy, and it is us!

Out of control

Can those who man the ship of state in these United States deny that it is out of control? Can the Obama administration deny this? Can Nancy Pelosi or Harry Reid? Can even any one of our Republican Senators or Congressmen deny that the U.S. government is out of control?

Our national debt is approaching $12 trillion -- that would be a stack of $1,000-bills more than 800 miles high! The budget deficit this year alone is more than $1.3 trillion.

The total of each U.S. citizen's share of the national debt is $38,926 -- for every man, woman and child, while the Gross Domestic Product per citizen barely exceeds that amount ($39,591).

The INTEREST alone on our national debt in fiscal year 2009 was more than $383 billion.

Adding to our troubles is a mass of government regulations imposed on businesses by huge bureaucracies that add more than $250 billion to the price of things we all buy and reduces our ability to produce them.

The government -- at every level -- has become a huge funnel taking money (by force and coercion through taxes) from "producers" (i.e., working people and firms) and giving that money to (mostly) "non-producers." Non-producers are those who contribute nothing to the U.S. economy, adding nothing to the Gross Domestic Product (GDP). Examples would be politicians, bureaucrats, and most entitlement program recipients.

Those who have become a part of the problem...

"I don't believe that those who have become part of the problem are necessarily the best qualified to solve the problems." -- Ronald Reagan (1976)

Obama's Top Secret Motivation for a Federal Take-over of Health Care

Why is Obama so intent on getting universal health coverage in place as soon as possible? Is it just his socialist heart driving him to do what he thinks is the right thing to do for people?

Not on your life!

There is a hidden motive that has NOT been revealed in anything I’ve seen written about this administration’s hard-driving campaign for so-called “health care reform.”

What is that hidden motive?

The labor unions! In particular, there are the UAW (United Auto Workers) and USW (United Steel Workers) unions that have been clamoring for government-funded universal health coverage for nearly three decades. Then, do not forget how the federal government’s shared ownership of the GM and Chrysler with the unions’ trust funds plays into all of this.

Back in 1981, health insurance for union employees and retirees was costing U.S. automakers more than $400 per automobile. A few short years ago, that number had skyrocketed to nearly $3,000 per vehicle. Is it any wonder that Representative John Dingell (D-MI), Michigan's (and Congress's) longest-serving Member of Congress has been a champion of universal health care for more than 50 years -- that' right, since 1957. And, yes, it's the same Michigan that is home to Ford, Chrysler and General Motors. Is there a connection? Of course there is a connection!

Just imagine what happens if government-sponsored universal health insurance is made available. Suddenly the manufacture of automobiles at GM and Chrysler becomes about $3,000 per vehicle more profitable. Suddenly the unions have another $3,000 per vehicle to bargain for — again!

Make no mistake about it: Just like the “Card Check” legislation, universal government-funded health coverage is JUST ONE MORE PAY-BACK to BIG LABOR for the part the unions played in getting Mr. Obama into office in the first place.

STOP THE PAY-BACK! Contact your Congressmen and Senators and tell them that we cannot afford another multi-trillion-dollar political payback laid on the backs of the American taxpayer (the roughly 40% of us who actually pay taxes).

What Could Make Our Congressmen and Senators Do It?

Here's a letter I just send to several dozen Congressmen and Senators:

When calls and letters are running 98% AGAINST BAILOUTS, RADICAL NEW SPENDING PROGRAMS, and other FOOLISH INTERVENTIONS in our FREE MARKETS in order to "save" banks and investment firms, what could possibly cause a CONGRESSMAN or SENATOR to turn against his or her constituents?

Perhaps the fact that (according to the Center for Responsive Politics) the fact that the securities and investment industry contributed $53 million to congressional and presidential candidates in the 2008 election cycle. Congressmen who voted in FAVOR of the initial bailout (Sept 2008) had received 54% MORE MONEY in campaign contributions from banks and securities firms than had those who voted AGAINST the bill.

Blessings on those who were willing -- and CONTINUE to be willing -- to STAND AGAINST this dangerous and damaging foolishness! The rest of you should be ASHAMED!

What are YOU going to tell them?

Who was it, again, that people on Capitol Hill were calling "greedy" and "selfish" again? Was it those folks on "Wall Street" that the Capitol Hill "pot" were calling "black"?