Melanie Sturm | @ThinkAgainUSA
In this topsy-turvy election year, wonders never cease, as Americans Think Again about how to throw the bums out, even unelected bureaucrats.
The willingness to break with long-standing political norms isn’t surprising, considering voter anger, pessimism and spiking anxieties. Recent surveys of Americans show overwhelming majorities believe the country is on the wrong track, the American Dream is unachievable, and our powerful, unaccountable government is America’s biggest threat.
Consequently, political dynasties have been rendered passé, as mega-donor darlings Jeb Bush and Hillary Clinton discovered en route to their coronations. Not even their powerful Super PACs (funded by unlimited individual, corporate and union support) can assure their victories.
The standard trump cards aren’t working either, including the gender card, played recently by former Secretary of State and Hillary-backer Madeleine Albright who admonished, “there’s a special place in hell for women who don’t help each other.”
For Ted Cruz, Marco Rubio and Ben Carson, the normally formidable race card trumps nothing. But a blustering and incoherent Donald Trump trumps everything, thanks to the limitless free airtime the ratings-hungry media grant him. ”I’m winning by a lot,” the self-funder boasts, but “I spent almost nothing.”
Meanwhile, the media leaves unexamined Trump’s assertion that his wealth is a scorecard of his abilities. Some analysts calculate the present value of Trump’s inheritance would approximate his current net worth, if he’d simply invested it in the S&P 500.
Undermining Trump’s inevitability, the self-described winner’s first electoral outing was a loss to Cruz and near-upset by Rubio, as 76 percent of Iowa caucus-goers voted not-Trump. His New Hampshire victory was impressive, capturing all demographic groups, but two-thirds still voted not-Trump.
As under-performing contenders like Chris Christie and Carly Fiorina exit the crowded field, the eventual consolidation – and Trump’s record-breaking unfavorability in the general population – bode poorly for his candidacy.
Nevertheless, the ratings-magnet is well positioned to parlay popularity into a Trump network, like the media platform that made Michael Bloomberg – who’s contemplating his own self-funded presidential campaign – one of the world’s richest.
Another surprising result was Cruz’s defeat of King Corn in Iowa. The anti-Washington agitator won record numbers of votes in a historic GOP turnout while arguing that farmers are hurt by government ethanol mandates – not helped, as powerful agribusiness lobbyists allege.
Most extraordinary is Bernie Sander’s durability. Polls show the septuagenarian-socialist tied with Clinton nationally, after narrowly losing Iowa but routing her in New Hampshire where 93 percent of Democrats prioritizing honesty preferred Sanders.
Are voters drawn to Sanders’ socialism, or is he the beneficiary of a “no more Clintons” mindset, especially after reports the Clintons “earned” $153 million in speaking fees since leaving the White House?
It’s probably both, since Sanders’ support skews young. Thirsty for trustworthy leadership, “Sandernistas” have witnessed government bailouts and rampant cronyism, while suffering through the feeblest economic recovery since the Great Depression.
According to Pew Research, this generation is “the first in the modern era to have higher levels of student loan debt, poverty, and unemployment and lower levels of wealth and personal income.”
No wonder they find political revolution tempting. But they should study the American Revolution before accepting Sanders’ plan to concentrate ever-growing government power in the name of “social justice.”
As founder James Madison explained, “The essence of government is power; and power, lodged as it must be in human hands, will ever be liable to abuse.” Concerned that a government would eventually encroach on rights and liberties, Thomas Jefferson forecast “debt, corruption and rottenness,” absent constitutional guardrails.
That’s why, after overthrowing King George’s arbitrary and unfair rule, America’s founders established a government with limited powers to protect the equal rights of the people, believing the boundless potential of individuals operating in a free society would “make America great” – and they were right.
Yet as government has grown, so have its anti-competitive powers, corrupting our founders’ liberty-preserving system with cronyism that rewards political connections over competitive excellence.
Using massive powers to legislate, tax, spend and regulate, policymakers have rigged the economy and undermined the principles on which freedom, fairness and opportunity rely – equality under the law, property rights and sound money.
Given America’s heritage and Big Government’s dismal track record, it’s stunning that Sanders and Trump -- both advocates of using unprecedented government power to centrally plan and control economic life – could win New Hampshire’s “Live Free or Die” state. Have its freedom-loving voters forgotten the national purpose their state helped found – the democratic self-rule of a free people?
Hopefully, America is in revolt and casting about for outsiders not because they want more government, but because of the failures of our hyper-politicized, unaccountable government: contaminated water, terrorist attacks, dying vets, IRS harassment, illegal immigration, health care chaos, and murdered U.S. diplomats and border guards.
Think Again – in this anti-conventional wisdom year, may our founders’ wisdom about the dangers of Big Government ultimately prevail.
Melanie Sturm | @ThinkAgainUSA
If only Pope Francis were in my Buenos Aires taxi last Christmas.
I could have used his moral authority (and Argentine-accented Spanish) in negotiating with a driver who’d forgotten the “Golden Rule.” And in witnessing my struggle, the self-described “very allergic to economics” pontiff might have gleaned a moral lesson, helping him Think Again about the free enterprise system he’s criticized.
Perhaps he’d grasp why the life-enhancing innovations that America continuously exports – cars, vaccinations, refrigerators, iPhones, 3-D printers, and the cheap and reliable taxi-alternative Uber, for which I longed – don’t happen in Argentina.
Nor do they spring from other Latin American countries, like Venezuela where a protest sign encapsulated people’s contempt for the social-justice espousing frauds who run many Latin nations: “These Castro-Chavistas speak like Marx, govern like Stalin, and live like Rockefeller, while the people suffer.”
Would His Holiness recognize how Argentina’s corporatism – the unholy alliance between government and conglomerates – corrodes social trust, rendering his countrymen voiceless and crucifying their wellbeing and dignity?
After successive governments eroded the rule of law, property rights, and sound money, replacing free enterprise with central planning and a debt-financed welfare state, Argentina slid toward the bottom of the Fraser Institute’s Economic Freedom of the World Index.
Once the world’s breadbasket and fourth-richest nation per-capita – hence the saying “rich as an Argentine” – the Pope’s native land is now a basket case with economic wellbeing (GDP per-capita) only one-third America’s.
If the Holy Father had heard our cabdriver despair over widespread deprivation, corruption and distrust of everyone except the pontiff, might he agree with fellow rock-star Bono about how to lift up the masses? “In dealing with poverty,” Bono stresses, “welfare and foreign aid are a Band-Aid. Free enterprise is a cure.”
The patient is mending, the World Bank reported: For the first time in history, extreme poverty afflicts less than 10 percent of world population. Meanwhile, people in economically freer countries enjoy higher living standards, cleaner environments, longer lives, and better-protected civil rights. They also have less corruption, child labor and unemployment.
In his new book, “The Conservative Heart,” American Enterprise Institute President Arthur Brooks calls the free enterprise system “America’s gift to the world,” enabling more people to pursue their happiness through earned success derived from work.
“It was the free enterprise system that not only attracted millions of the world’s poor to our shores and gave them lives of dignity, but also empowered billions more worldwide to pull themselves out of poverty,” Brooks asserts.
At home, however, America’s asymmetric recovery “has cleaved the country into winners and losers like never before,” he writes. Consequently, Americans fear our free society’s trademarks – opportunity and social mobility – are disappearing, imperiling our children’s security and prosperity.
We may be better off than Argentines, but with median income down 6.5 percent since 2007, record numbers out of the workforce, poverty and government dependency rates at all-time highs, and deaths of small businesses (job creation’s primary engine) exceeding starts for the first time on record, it feels like we’re slouching toward Argentina.
While Wall Street and Silicon Valley have boomed, the richest and most generous nation on earth contains pockets of destitution and immiseration – like Baltimore – where millions are deprived of the dignity and fulfillment of work.
Brooks’ snapshot of the last seven years is “deja-vu all over again,” Argentine-style: “People see corporate cronies getting rich because of their cozy relationship with the government. They see bailouts for huge banks but small businesses going bust. They see government loan guarantees for big companies with friends in high places, but hear ‘No loans for you’ from their local bank.”
Ranked among the world’s most economically free nations for decades, America has fallen to 16 in Fraser’s Index, due to these unfair government policies. Consequently, US annual growth is projected to be half its 3 percent historic average.
That His Holiness is unaware of the relationship between economic freedom and human flourishing is a sin, though not original. After all, presidential candidate Bernie Sanders sins similarly, arguing for greater government control of our lives, even at the expense of economic growth.
“You don’t necessarily need a choice of 23 underarm spray deodorants,” Sanders declared, “when children are hungry in this country” – as if narrowing deodorant choice could decrease hunger.
The truth is, poverty is humanity’s natural state, and free enterprise is the most merciful economic system yet designed for moving people toward productive and dignified lives. No central planner exists who’s capable of improving on the endless autonomous decisions made efficiently, creatively and cooperatively in the free market, as if divinely guided.
Think Again – as long as we enjoy the blessings of economic freedom, we have the choice not to attend the Pope Francis & Bernie Sanders School of Economics where the tuition is free, but extraordinarily costly, as my Argentine cabbie would confirm.
Melanie Sturm | @ThinkAgainUSA
With several political climaxes looming, it serves to recall “High Noon” starring Gary Cooper as Will Kane, the beleaguered marshal who single-handedly confronts paroled murderer Frank Miller and his gang. As civil society’s elected protector, Kane is a reluctant hero, abandoned by his cowering and self-interested townsfolk. Improbably victorious, he departs town, flinging his badge with contempt for the citizens who wouldn’t defend the rule of law on which their freedom, prosperity and security depend.
Though protagonists in our national Kabuki Theater claim to care about us, Think Again before allowing them to join Kane on the moral high ground. In verbal shootouts over Obamacare, the continuing resolution, the debt ceiling and Syria, our lawmen resemble Kane’s fair-weather constituents for whom self-interest trumps the common good. By failing to anticipate and resolve America’s imminent threats before they reach High Noon climaxes, politicians undermine America’s interests and squander their legitimacy.
There’s a Kane-like resentment smoldering in far-flung territories for lawmakers who trade political favors for donations; pass incomprehensible, lobbyist-written, and unread laws; and grant ever-increasing authority to the intrusive and unelected bureaucracy. Lawmakers may arrive in Washington believing it’s a cesspool, but after harnessing governmental power and dispensing billions, they discover it’s a hot tub made inviting by the collusion of big government, big business and big special interests.
Yet while Washington booms, Americans endure depressed wages, economic stagnation, and high unemployment. To stimulate the sluggish economy, the Federal Reserve is continuing it’s near-zero interest-rate policy, cushioning the accounts of stock-market investors and bankers, while crushing the financial plans of ordinary Americans, imperiling retirement savings, and exacerbating income-inequality.
Though Washington manufactures little beyond economically injurious legislation, regulations, and bills for taxpayers to fund, it enjoys the nation’s highest median household income, up 23 percent since 2000, compared to a 7 percent decline nationally. That’s because federal spending ($3.5 trillion) now absorbs nearly one-quarter of the economy, up from 18 percent ($1.76 trillion) in 2000, causing a tripling of the national debt – a growth rate the Congressional Budget Office says is unsustainable. Furthermore, with unfunded liabilities exceeding $75 trillion and without reforms, Social Security and Medicare won’t exist for younger Americans.
Given this fiscal picture, and with tax revenues hitting a record high, can we trust politicians like Nancy Pelosi who now assert “the cupboard is bare; there’s no more cuts to make?” How can lawmakers claim to be for hardworking families and younger Americans without addressing the unsustainability of our growing debt and entitlement obligations, knowing these taxpayers must pay the bills?
Lawmakers’ rank hypocrisy and lawlessness were exposed this month when the White House agreed to grant Congress and its staffers a special exemption from Obamacare – the 2,700-page law they imposed on the citizenry – by continuing special taxpayer-funded insurance subsidies. This Washington self-dealing comes after granting over 2,000 waivers to political allies and illegally suspending major parts of the law, including the employer mandate and subsidy verification requirements -- fiats that invite rampant fraud at taxpayer expense.
So concerned with the law’s unintended consequences, the AFL-CIO declared it “will lead to the destruction of the 40-hour work week” while devastating “the health and wellbeing of our members along with millions of other hardworking Americans.” As the New York Times reported last week, "having an insurance card does not guarantee access to specialists or other providers." Furthermore, as businesses skirt Obamacare’s expensive provisions by eliminating jobs and reducing hours, what difference does coverage for pre-existing conditions and 25-year old children make to those who lose their plans and doctors?
You know something's wrong with a healthcare law that results in fewer doctors, nurses, and hospital beds, but more IRS enforcers. And for those who insist the government stay out of your bedroom, steel yourselves to answer intrusive questions about your private life for data mining purposes -- or pay hefty fines.
As the country churns from Obamacare’s impacts, the clock approaches High Noon on budget and debt ceiling decisions to which escalating health care costs are central. Yet, the President declared Washington a negotiation-free zone, a curiosity since real outlaws like Russia’s Putin and Syria’s Assad are now negotiating partners.
Will President Rouhani of Iran, the planet’s largest exporter of terrorism, be next? Assad may now avoid using chemical weapons, but how many more innocents will die conventionally because two-years of American calls for Assad’s ouster -- and other saber rattling -- were empty cowboy rhetoric?
With strategic planning and leadership, these policy cauldrons have solutions, though not when elected officials scurry from their moral duties, like High Noon’s townspeople. There are scores of courageous Marshal Kane's in every town across America, except the one where the nation needs them most.
Think Again – wouldn’t you rally around this kind of leadership to avoid devolving into the Divided States of America?
Melanie Sturm | @ThinkAgainUSA
During the Civil War when the union’s preservation and slavery’s abolition were in doubt, President Lincoln roused the nation with his dream “of a place and a time where America will once again be seen as the last best hope of earth.” In rekindling our Founders’ vision, Lincoln helped assure that America would become the freest and most prosperous nation on earth, a status successive US presidents have dutifully maintained, or they were cast aside by voters.
As Americans Think Again about President Obama, consider that no president has won re-election amid such economic stagnation, declining incomes, high gas prices and business pessimism. Living astonishingly beyond our means and more indebted than any other nation in world history, Americans face a reduced standard of living, diminished opportunities for our children, and a weakened capacity to secure our national interests in a menacing world.
After trillions in fiscal and monetary stimulus, the 39-month old economic recovery has one-seventh the GDP growth rate of the Reagan recovery in which double-digit inflation and interest rates were also slain. With 261,000 fewer jobs today than January 2009 (despite population growth of 9 million), exploding poverty, government dependency, and income inequality imperil Lincoln’s dream.
During the economic turmoil of 2008, Obama sounded Lincoln-esque, promising to “provide good jobs to the jobless…secure our nation and restore our image as the last best hope on Earth.” But unlike Presidents Kennedy, Reagan and Clinton who understood the benefits of economic growth policies – more and better jobs, larger paychecks, growing tax revenues without tax rate increases, and deficit and debt mitigation -- Obama doubled down on government-centric and budget-busting policies.
Having inherited a government moving in the wrong direction on bailouts, spending, deficits and debt accumulation, Obama floored the gas. Though critical of Bush’s $4 trillion in accumulated debt and vowing to halve the annual deficit by now, Obama has run four successive trillion-dollar deficits – each nearly triple Bush’s average -- while increasing debt nearly $6 trillion to a sum ($16.1 trillion) that exceeds the US economy. Historically, America’s economy has grown faster than its debt -- until Obama, under whom debt is growing $2.50 for every dollar of GDP growth.
With 10,000 baby boomers turning 65 every day, manditory expenditures for Medicare, Social Security and Medicaid are exploding, consuming more annually than the combined cost of the Iraq and Afghanistan wars and TARP bailouts. Rather than address the looming entitlement crisis, Obama’s budget projects massive deficits and $20 trillion in debt by the end of his second term. So fiscally irresponsible, not one member of Congress -- not even a single Democrat -- has voted to approve either of Obama’s last two annual budgets.
Meanwhile, with Democrats in complete control of Congress through January 2011, Obama’s signature legislative “reforms” – Obamacare and Dodd-Frank – ignored Republican solutions, and imposed thousands of complex regulations and new taxes on the private economy, nearly paralyzing job creation and economic growth.
Though sold as “Wall Street reform”, Dodd-Frank makes bailouts more likely by designating selected banks “too-big-to-fail” and failing to reform the financial crisis’ real culprits -- housing-finance giants Fannie Mae and Freddie Mac. With smaller banks competitively disadvantaged, lending is down, consumer prices are up, and expensive consultants, like the former chiefs-of-staff to both Dodd and Frank, are in demand.
Neither is Obamacare meeting its promises. Insurance premiums are up $2,500 and according to the Congressional Budget Office (CBO), Obamacare will cost nearly twice its original estimate, leave 30 million Americans uninsured, and cause 20 million people to lose their employer-provided health insurance. Additionally, it imposes 20 new taxes on families and small businesses and incentivizes employers to hire part-time instead of full-time workers.
Thanks to recent technological breakthroughs, America is now the most energy-endowed nation in the world. Allowing the responsible development of our resources would generate millions of jobs while turbo-charging the economy and revitalizing distressed communities. Yet despite promising an “all-of-the-above” energy policy while investing $90 billion in uncompetitive green energy companies, Obama blocked the Keystone XL pipeline and reduced drilling permits on public lands by 36 percent, compared to increases of 116 and 58 percent under Bush and Clinton, respectively.
Meanwhile, GDP growth slumped to 1.3 percent in the second quarter, but Obama proposes to increase tax rates on “millionaires and billionaires” (individuals and small businesses making over $250,000) to promote fairness, after opposing them in 2010 when the economy was growing at twice its current rate. But how can it be fair to implement a policy that the CBO considers economically injurious and would yield only enough revenue to fund 8.5 days of government spending? Given Obama’s track record, how could another four years of the same policies result in enough economic growth to overcome our economic challenges?
Mindful of these challenges and eager to diffuse the debt bomb while preserving entitlement programs for future generations, Governor Romney proposes to expand the private economy with spending, regulatory, tax and entitlement reforms reminiscent of those enacted by Kennedy, Reagan and Clinton – modern America’s most successful economic stewards. Romney proposes to cut tax rates by 20 percent for all Americans while maintaining the same share of taxes paid by the wealthy. But unlike Bush, he’ll pay for them by eliminating expensive loopholes only accessible to wealthy individuals and companies like GE.
Divided as we were during the Civil War, Americans long to be unified by a leader, like Lincoln, committed to expanding liberty and increasing individual opportunity -- the source of human flourishing and America’s promise.
Think Again – only by restoring these cultural bulwarks can we pass our children a strong America, and remain the last best hope of earth.
Melanie Sturm | @ThinkAgainUSA
Beyond the realm of inconvenient truths, there’s a dimension to which Bill Clinton occasionally retreats. It’s a dimension of fertile imaginations, sound bites and mind games whose boundaries the gullible determine. In this wondrous land, tokes aren’t inhaled, sex with interns isn’t sex, and the meaning of “is” isn’t always is. When Clinton wags his finger to punctuate a claim, like “no president – not me or any of my predecessors -- could have repaired all the damage in just four years,” it’s his poker “tell.” Next stop: the Twilight Zone.
Ironically, the president who rode to victory in 1992 on the theme “it’s the economy, stupid,” now suggests it’s stupid to examine the 39-month old economic recovery which, we were promised, would yield 4 percent gross-domestic-product growth and 5.6 percent unemployment -- not the current 1.6 percent and 7.8 percent, respectively. Before crossing over to the land of suspended disbelief, Think Again.
In fact, until now, all presidents over the last 75 years have performed better. As Milton Friedman observed, and a November 2011 Federal Reserve study verified, the worse the recession – even when caused by a financial crisis -- the stronger the recovery, absent bad government policies like those that prolonged and deepened the Great Depression.
Despite record levels of stimulation that exploded government spending to 25 percent of GDP (up from a 60-year 18 percent average) and four consecutive years of trillion-dollar deficits, an Associated Press study concluded “that by just about any measure”…this is “the feeblest economic recovery since the Great Depression. More than any other …people who have jobs are hurting: Their paychecks have fallen behind inflation.” Consequently, income inequality has materially worsened and, as Vice President Biden noted last week, “the middle class has been buried the last four years.”
The annals of post World War II economic recoveries show Biden is right. Never before have Americans suffered such poor prospects nor sought such refuge in safety net programs. When counting the millions of discouraged Americans no longer in the labor force, true unemployment is 14.7 percent. Meanwhile median household income has dropped nearly 5 percent, amidst exploding gas and food prices. Not surprisingly, a record number of Americans now claim federal disability checks and food stamps, up nearly 20 and 44 percent, respectively.
President Reagan inherited the other “worst” post WW II recession and, unlike the most recent, had to contend with double-digit inflation and interest rates, in addition to double-digit unemployment. By this point in his presidency, Reagan’s pro-growth policies had unleashed the economy, resulting in 7.1 percent unemployment, rising median incomes and 11 percent GDP growth.
Most importantly, Reagan’s work with Democratic house leader Tip O’Neill to implement historic tax, social security and immigration reforms -- and Clinton’s collaboration with Republican house leader Newt Gingrich to reduce government spending, lower taxes on investment, implement “consensus deregulation,” and reform welfare -- fueled the greatest economic boom in world history from 1982 to 2007. As business investment grew, so did the job market and the number of Americans paying taxes, confirming what President Kennedy said “is a paradoxical truth that…the soundest way to raise [tax] revenues in the long run is to cut [tax] rates now.”
If the current “recovery” had merely performed as well as the average of all post-World War II recoveries, current US GDP would be $1.2 trillion larger and 7.9 million more Americans would have jobs. Americans have been denied this prosperity because of unprecedented levels of government spending, job-killing regulation, and crony capitalism – partisan policies which large majorities of business leaders in two recent surveys (Business Roundtable and National Federation of Independent Business) say hurt them.
That 55 percent of small business owners surveyed wouldn’t start their business today reflects a lack of confidence in the economy’s future, imperiled as it is by $16 trillion in debt (up 50 percent since January 2009), a sum larger than the US economy. When interest rates increase from historic lows, larger interest payments will necessitate draconian budget cuts and increased taxes. Absent rapid GDP growth to bring debt-to-GDP levels down to manageable norms, Americans can’t be confident in a future that holds only two unacceptable alternatives – substantial tax increases or sustained inflation.
As the president who declared the era of big government over, Clinton understands our perilous fiscal state. Were he to emerge from the Twilight Zone, he’d agree that government spending should be capped at 20 percent of GDP -- the average during his presidency and a Romney campaign promise. He’d be opposed to increasing taxes in a fragile economy, as President Obama proposes. Most importantly, he’d be appalled at the lack of leadership evident in Obama’s budget – no plan to address the looming fiscal crisis and trillion-dollar deficits into oblivion.
Think Again – outside the Twilight Zone, it’s the pro-growth policies, stupid!
Melanie Sturm | @ThinkAgainUSA
Mark Twain famously remarked, “No man's life, liberty, or property are safe while the legislature is in session.” So when Massachusetts Senate candidate Elizabeth Warren proclaimed “the system is rigged” in her prime-time speech at the democratic convention -- Bill Clinton’s warm-up act – it appeared she agreed with Twain and 69 percent of Americans who believe “politicians break the rules to help people who give them money,” according to an August Rasmussen poll.
Before assuming Warren blames politicians for rigging the system, Think Again. In fact, as an advocate of an assertive and growing federal government run by benevolent and enlightened policymakers, Warren is out of sync with Mark Twain, public opinion, and America’s founders who feared a system rigged by powerful elites, like the British one they overturned.
When Thomas Jefferson asked if a “man cannot be trusted with the government of himself, can he then be trusted with the government of others,” he expressed our founders’ concern that future politicians would encroach on our newly declared natural rights and liberties, leading America into “debt, corruption and rottenness.” Hence, our founders designed a government with limited powers to serve -- not rule -- the people, and to protect our inalienable rights, not confer privileges to special interests.
Today, our founders’ worst nightmares are reality -- the system is indeed rigged. The government’s share of the economy has exploded to 25 percent, dampening the private sector as powerful politicians allow favored beneficiaries to feed at the federal trough. The negative returns from these policies Warren calls “investments” have pushed America down the “global competitiveness” rankings -- from number one in 2008 to number seven today -- according to the newly released World Economic Forum report that blames unsustainable debt, cronyism, regulation, and economic stagnation for the fall.
Politicians promised that “investments” like the 2009 Stimulus would revive our economy and reduce unemployment, yet $830 billion later we’re worse off. Even since the official start of the “recovery” in June 2009: economic growth is 40 percent of the historic average for post-recession rebounds; the percentage of Americans with a job is the lowest in decades and the real unemployment rate is 19 percent as four times more workers left the workforce last month than entered it; median household income is down sharply while food stamp usage and federal disability checks have skyrocketed; and poverty rates are near a 50-year high.
As she laments the suffering middle class, why doesn’t Warren evaluate whether the activist government policies she advocates actually underlie this despair? Shouldn’t she query why the president’s 2013 Federal Budget garnered no votes in Congress and why the Senate has failed for the fourth consecutive year to uphold it’s constitutional duty to pass a budget?
She'd find politicians fearful of endorsing a budget that borrows $1.3 trillion to fund the government, after paying for mandatory expenditures such as Social Security, Medicare, Medicaid and interest on the debt. But as federal debt spiked $5.4 trillion since January 2009, topping $16 trillion last week — a sum one-quarter of the combined gross domestic product of every country in the world — why isn't Warren proposing a plan to avert the looming fiscal crisis?
Unless reformed, Social Security and Medicare won’t exist for younger generations. Nevertheless, Warren ignores this tragedy preferring to wax eloquent about “a level playing field where everyone pays a fair share and everyone has a real shot”…. because “the economy doesn’t grow from the top down, but from the middle class out and the bottom up.” But how do we secure a middle class out of government jobs paid for with borrowed dollars? Does our undisciplined, indebted and special interest-oriented government subvert the private economy, undermining the middle class and those who aspire to it?
This is the argument of Senator Tom Coburn’s book “The Debt Bomb,” endorsed by Alan Simpson and Erskine Bowles on whose fiscal commission he served. Contrary to the narrative that blames lobbyists and gridlock, Coburn contends, “Congress has been an assembly line of new programs and a favor factory for special interests. Our economy is on the brink of collapse not because politicians can’t agree, but because they have agreed for decades…to borrow and spend far beyond our means… to create or expand nearly forty entitlement programs, carve out tax advantages for special interests, build bridges to nowhere and earmark tens of thousands of other pork projects.”
Anxious to prevent an economic calamity worse than 2008, Coburn urges Americans to drain Washington’s stagnant pond, refilling it with public servants committed to un-rigging the system that’s left millions of Americans “on their own,” deprived of jobs and hopes of finding one. Without a plan to solve our economic and fiscal woes, Warren is an accomplice to the rigged system she denounces.
Think Again Elizabeth Warren — telling the truth and taking responsibility distinguish great leaders from mere politicians.
Melanie Sturm | @ThinkAgainUSA
Last Saturday, as Americans debated whether Lance Armstrong was a genuine hero after dropping his fight with the US Anti-Doping Agency, another Armstrong – an undisputable American hero -- died. Were Webster’s to pair Neil Armstrong with hero in its dictionary, one needn’t Think Again to fathom the bravery, achievement, and nobility implied by the word.
By fulfilling President Kennedy’s audacious goal to have an American walk on the moon within the decade, Neil Armstrong is remembered for the skill, courage, grace under pressure, and innate humility necessary to achieve “one giant leap for mankind,” while crediting legions of dedicated others for the “one small step for man” he took on July 20, 1969. Upon fulfilling his mission, he didn’t spike the football or parlay fame into power or fortune. He receded into dignified private life to teach and inspire future generations.
In breaking the sad news, NBC’s Brian Williams asserted, “we have lost the last American hero,” as if surrendering America’s heroic destiny to our era’s chaos and controversy. Yet throughout our tumultuous history, Americans have proven “where there’s a will, there’s a way” -- starting with George Washington, who summoned heroism in his beleaguered troops by crossing the icy Delaware River enroute to American independence.
Though Thomas Jefferson warned “The natural progress of things is for liberty to yield, and government to gain ground,” our founders established “a government of the people, by the people, for the people,” knowing it was a precondition to a dynamic, prosperous and free society. We fought the Civil War so this American ideal wouldn’t perish from the earth. Now, with our faith in the American Dream rattled, we face another great challenge.
Today we suffer unprecedented levels of economic stagnation, long-term unemployment, and government dependency. Despite a record $830 billion stimulus enacted in February 2009, this recovery (which technically began in June 2009) is the weakest of the 11 tracked since World War II. Stimulus advocates promising the unemployment rate wouldn’t exceed 8 percent (though it has for 42 consecutive months), were also wrong in forecasting a 5.5 percent rate by now.
Even since the “recovery’s” start, economic trends have deteriorated: the ranks of the long-term unemployed grew by 800,000; those no longer in the labor force increased 8 million; and food stamp spending doubled to $85 billion. New York Times economics columnist Catherine Rampell reported that median household incomes declined more (4.8 percent) during the “recovery” -- even among the continuously employed -- than they fell (2.8 percent) during the preceding 18-month recession. Consequently, 85 percent of the much-discussed American middle class report that it’s now harder to maintain their standard of living, according to Pew Research.
Humorist PJ O’Rourke said, “giving money and power to government is like giving whiskey and car keys to teenage boys.” Refusing to relinquish their intoxicating power to spend and borrow, political leaders have subverted the national interest by causing four consecutive trillion-dollar deficits. With government spending at stratospheric levels, we charge $41,222 to our children’s credit card every second. At $16 trillion, our national debt is up 50 percent since January 2009, exceeding the size of our economy. When added to future Medicare and Social Security claims, it totals $136 trillion -- an incomprehensible, indefensible, and morally reprehensible sum.
Anyone who’s balanced a checkbook -- or watched events unfold in Europe -- understands that red ink turns to blood, particularly when interest rates rise above historic lows. So, how can we trust leaders who won’t see and aren’t planning to avert the fiscal black hole toward which we’re rocketing? Shouldn’t we urge courageous leaders to redirect our perilous trajectory toward a safe landing?
As the cliché goes, “if we can send a man to the moon,” we can restore America’s promise to secure a more stable and prosperous future. After instituting reforms to entitlement programs and its tax code, Canada achieved a remarkable economic turnaround, and so can we. It will require a Kennedy-esque leader to define the challenge as the fiscal equivalent of the moonshot, and to summon the political will for lift-off against fierce gravitational forces.
As a firm believer in Americans, Abraham Lincoln said, “If given the truth, they can be depended upon to meet any national crisis. The great point is to bring them the real facts.” Eager for blast off is a nation of unassuming and reluctant heroes – ordinary Americans. Spoken to like adults, and with the facts in hand, we have the “right stuff” to enable another “giant leap for mankind.” If this isn’t our generation’s most important mission, what is?
Think Again – our children need us to be their heroes.
Melanie Sturm | @ThinkAgainUSA
When Gloria Steinem popularized the saying “a woman needs a man like a fish needs a bicycle”, I wasn’t old enough to wear a bra, never mind burn it. However, thanks to that feminist credo and its infiltration of 1970s popular culture, women of my generation grew up believing we could make it on our own, like Mary Tyler Moore. While her theme song cautioned, “this world is awfully big, girl,” our confidence rose with Mary’s cap, tossed triumphantly to “you’re going to make it after all.”
Indeed, we did make it, though presidential campaign operatives peddling the “War on Women” narrative want you to Think Again. They insist it’s a war on women when it’s actually a war for women’s votes. This month’s political ad, “The Life of Julia,” occasions the question: which voter are they after, Georgia in Greece or Mary in Minneapolis?
Julia is a single, faceless cartoon – evidently an American everywoman – who depends on European-like, cradle-to-grave government assistance from pre-school through retirement. As if being tethered to a dependency-inducing nanny-state were attractive to American women (or plausible given mounting debt) Julia, like her entitled European cousin, is the anti-Mary -- she can’t make it on her own.
Sadly, this government-centered and soul-deadening narrative is as false and harmful to women as the notion that we should be barefoot and pregnant in the kitchen. Both beget a toxic cocktail of subservience, loss of identity and worthlessness -- the antithesis of feminism. Franklin Roosevelt cautioned that dependence “induces a spiritual and moral disintegration fundamentally destructive to the national fiber”…and “the human spirit.”
The antidote to “learned helplessness” and its corollary unhappiness is “earned success”, according to economist Arthur Brooks, President of American Enterprise Institute and happiness authority. In his new book “The Road to Freedom,” Brooks explains, “people crave earned success, which comes from achievement, not a check. It’s the freedom to be an individual and to delineate your life’s ‘profit’”…whether measured in money, “making beautiful art, saving people’s souls, or pulling kids out of poverty.”
Earned success is what our Founders meant by “the pursuit of happiness” which is America’s “moral promise” to its citizens. Brooks praises the Founders’ visionary insight because “allowing us to earn our success is precisely what gives each of us the best chance at achieving real happiness,” and his data proves it.
Feminists understood earned success knowing self-reliance and freedom would yield more choices, achievement, self-respect and fulfillment if women had a level playing field. Now, four decades since Helen Reddy sang “I am Woman,” women are “The Richer Sex” -- the book by Liza Mundy documenting women’s economic advancement. The New York Times book review noted: women hold 51 percent of management and professional jobs; wives at least co-earn in two-thirds of marriages; and women earn 57 percent of bachelor’s degrees and comprise 60 percent of graduate students.
Meanwhile, according to a March National Journal poll, three-quarters of women believe they can advance as far as their talents take them. Not surprisingly, women account for seven of the top 10 spots on Forbes 2012 World’s Most Powerful Celebrities list including the top two, Jennifer Lopez and Oprah Winfrey.
Despite these spectacular achievements, economic stagnation makes otherwise self-sufficient women – especially single ones -- insecure and uncertain. Preying on this anxiety, ambitious politicians cast themselves as compassionate by promising a lifetime of government benefits to a nation of Julia’s. Considering the tortuous unraveling of the Eurozone, this idea is both fantasy and dangerous.
In Europe, hopelessly large social security and entitlement promises exceed governments’ ability to tax and borrow, crushing those who believed economic security is a basic human right. Yet, as European leaders grapple with resentments caused by austerity measures, American politicians make the same promises that precipitated Europe’s crisis.
Brooks would argue that even Julia knows it’s wrong to make promises you don’t intend to keep. He warns, “Americans today are experiencing a low-grade, virtual servitude to an ever-expanding, unaccountable government that…. has created a protected class of government workers and crony corporations that play by a different set of rules … and has consequently left the nation in hock for generations to come.”
Thankfully, American women are watching and willing to act. According to a Rasmussen poll released this week, nearly two-thirds of women (and men) prefer a government with fewer services and lower taxes. So rather than foster dependency, why not encourage the fiercely independent and self-reliant ethic that originally motivated feminists and propelled women’s economic advancement?
The real war on women is the one waged by those whose policies undermine our economy thus limiting everyone’s choices, mobility and independence. As for Julia, she’d be better served by policies that empower her as an individual, not ones that encourage reliance on government.
Think Again, Julia – you can “make it on your own.”
Melanie Sturm | @ThinkAgainUSA
What do you get when you cross George Orwell’s Animal Farm with John Belushi’s Animal House? Government Gone Wild!
If you assume that’s the title of a porn movie about U.S. secret service agents cavorting with prostitutes in foreign countries, or employees of the U.S. Government Services Administration (the GSA manages federally-owned property) whooping it up in Las Vegas at taxpayers’ expense, Think Again.
The hard truth is that the larger government grows, the more Orwellian and “Animal House” its conduct. Belushi’s character “Bluto” exercised no greater restraint around free beer than did GSA Regional Director Neely and his employees, whose exploits at their $823,000 Las Vegas “team-building” soirée were videotaped, only to dominate newscasts this month. Bluto couldn’t have carpe diem-ed on his parents’ allowance better than Neely who wrote in an invitation to personal friends: “We’ll pick up the room tab…. I know I’m bad, but…why not enjoy it while we have it….Ain’t gonna last forever.”
Since government depends on resources drawn from the real economy, consider these facts: after the GSA’s Inspector-General reported Neely’s misconduct, Neely still received a 2011 bonus; the average GSA salary is nearly $92,000, $40,000 more than median household income; and the GSA’s budget rose 119 percent in 2011. Furthermore, the non-partisan Congressional Budget Office reported this January that federal employees enjoy greater job security and earn significantly higher compensation compared to private-sector workers.
Having worked in a large bureaucracy (the World Bank), I believe most public servants are decent, skilled, and dedicated, though rarely are “per diem” allowances unspent, or self-justifications un-uttered. It’s a truism that people won’t spend other people’s money as carefully as they spend their own. Unlike household budgets that strive to boost savings by minimizing expenses, government bureaucracies spend what they’re given while justifying more for next year. They also lack the expertise and market discipline to “invest” wisely, evidenced by “green investments” in now-bankrupt companies like Solyndra.
Here's the ultimate question: why transfer more money from the real economy to those who are intrinsically more wasteful, negligent and indifferent to its ultimate good? To curb Bluto-like behavior, voters mustn’t allow irresponsible conduct they wouldn’t otherwise tolerate. If your child spent irresponsibly while racking up credit-card debts, wouldn’t you confiscate his card? Good governance, like good parenting, means establishing and enforcing reasonable limits.
Yet, politicians charged with stewarding America’s finances have acted like the pigs in Animal Farm who pronounced “all animals are equal, except some are more equal than others.” Exempted from the self-discipline and frugality associated with American Exceptionalism and prosperity, they’ve presided over the greatest scandal -- an explosion of government, an avalanche of debt and the mugging of our children’s future.
April 29th marks the third consecutive year in which the Senate hasn’t passed a budget. Vested with the authority to confront and steer America through fiscal problems, the Senators’ inaction reflects the ultimate “piggish” dereliction of duty. It’s also illegal, though conveniently, there’s no penalty for breaking the 1974 Budget Act.
Senate Budget Chairman Kent Conrad said last year, “History is going to judge whether we have the courage, character, and the vision to stand up for America’s future. Those who take a walk, those who turn away, those who don’t have the gumption to stand up, are going to be judged very, very harshly.” Though Conrad intended to pass a budget resolution this month, he was over-ruled by Senate leadership. Believing they can evade electoral consequences by not voting on difficult budget matters, they mirror the corrupt, greedy, and myopic leadership of the pigs in Animal Farm.
Economist Milton Friedman, one of America’s greatest apostles for freedom and free markets, believed politicians are finger-in-the-wind types who can be trained: “The important thing is to establish a political climate of opinion which will make it politically profitable for the wrong people to do the right thing. Unless it’s politically profitable for the wrong people to do the right thing, the right people will not do the right thing either.”
In other words, the onus is on us. Politicians will concern themselves with our interests only if they think we care. If we don’t care that they’ve violated the law by refusing to adopt a budget, and that they’ve spent us $16 trillion into debt, what do we care about?
Demand accountability and restraint, and don’t allow the word trillion to be normalized, after all, a trillion hours ago dinosaurs roamed the earth! Don’t wait for the right people to get elected; remember, Bluto became a US Senator despite his 0.0 GPA. It’s a basic rule of life -- If we tolerate out-of-control Animal House behavior and indifferent Animal Farm attitudes, we’ll just get more of it.
Think Again. It’s not only a fiscal imperative -- it’s a moral one.
Melanie Sturm | @ThinkAgainUSA
Imagine having friends who earn $100,000 per year. They've continually outspent their income, charging $45,000 annually to credit cards. Their debt balance exceeds $700,000 and their interest rate is increasing. Facing two kids in college and retirement without savings, they plan to borrow more — from you!