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Showing posts with label Energy. Show all posts
Showing posts with label Energy. Show all posts

Thursday, April 22, 2010

The Obama Plan: Plenty of Change But Little Hope

As if the Obama administration wanted to help me make the point I was illustrating in yesterday’s article, a new flurry of regulatory threats are now emanating from the Food and Drug Administration and the Environmental Protection Agency. Apparently the government is taking its stance on healthcare very seriously now that they have made themselves a fixture in your health insurance and by virtue of that, a fixture in your health care decisions. In addition to everything we have already heard in the healthcare bill, the Food and Drug Administration (FDA) is now posturing itself to regulate the amount of salt in your foods. This is changing the focus of the agency from protecting you against tainted or diseased foods and assuming the role of deciding what you should eat because a bureaucrat can now decide it is not good for you.

Food without salt through government edict? Somehow I just don’t think that Washington is listening to us. We want government out of our lives; not taking control of our most basic choices. The people that should not have added salt in their foods because of a medical condition already know what they can and cannot have and have been making those decisions for themselves ever since doctors made the link between food and health. Necessarily, the regulation of salt would put some foods normally high in this once crucial condiment on the chopping block. I’m not sure you can even make bacon without salt and even if you could, would it be worth eating? Can you imagine a pretzel that didn’t have a healthy sprinkling of course salt or the summertime favorite, margaritas by the pool without salt encrusting the rim of the glass? New York is already going down this road and it is driving chefs crazy in the Big Apple. Professional cooks know there is nothing more basic to great tasting foods than the salt that enhances the natural flavor of nearly everything it touches.

Unfortunately, we now have a slew of radical advisors in positions of power within the White House and administrative agencies. Some, like Cass Sunstein, Obama’s regulatory Czar that also has a keen interest in animal rights, would prefer to see America abstain from eating meats as well. If we allow the FDA to pick our seasonings; can a government selection of our main course be that far behind? Sunstein’s beliefs are centered on government control of the masses, he also recognizes that direct regulatory actions can at times, be counter productive. Rather than risking confrontation with the people, Sunstein prefers a clandestine approach that would guide the actions of Americans while giving people the illusion of free choice. This would be accomplished by broadening government regulatory authority to limit the range of options people would be offered. Of course, those regulations would be imposed on manufacturers and industries so the resulting limits placed on American citizens would not be such an obvious intrusion of government.

In a 2008 book he co-authored with Richard Thaler titled: “Nudge: Improving Decisions about Health, Wealth, and Happiness”, Sunstein speculates that we should maintain an illusion of liberty where personal decisions are concerned by having the government “nudge” people to make better decisions. Obviously Mr. Sunstein believes that the learned scholars of his alma mater, Harvard, or the Washington agencies chock full of “deep thinkers” are in a far better position to make those critical choices for you. Sunstein’s book is not ashamed to mention that the regulatory power of government and a liberal application of the tax structure could easily be used to nudge people to make “correct” decisions based on the government definition of correct. Just the idea that he thinks that this coercion process is acceptable in a free society protected by unalienable rights deeply concerns me. Our freedoms and rights would have to be, at the very least, “trimmed” before any nudging could lawfully take place. Of course, if the nudge was gentle and hidden under the guise of the “regulation of commerce”, the question of government interference with personal liberties may never actually make headlines.

Even more insidious are the recent actions of the Environmental Protection Agency (EPA). EPA chief Lisa Jackson, recently declared an endangerment finding against Carbon Dioxide and several other so-called “greenhouse gases”. The finding allows the agency broad powers to regulate these gases under the existing authority granted to the agency under the Clean Air Act; avoiding the need for Congressional action all together. The purpose is clear. The President wants his Energy Bill (Cap and Trade) passed because of the enormous tax revenues that will be collected under the false premise of protecting the environment. Many in Congress recognize the dangers of this bill and the damage it will do to our economy so the passage of this bill is in question. Much of the resistance is due to the fact that the President’s Energy Bill offers absolutely no benefit to the environment. The general knowledge that the science behind global warming and climate change has been tainted with news of corrupt data and a concerted effort to silence dissent and debate has further complicated passage of the bill.

In the face of the uncertain future of the Energy Bill, the EPA has threatened to use their endangerment finding to impose regulatory sanctions on Carbon emissions in an attempt to blackmail Congress. Jackson argues that regulatory sanctions would be far more damaging to the US economy than the Cap and Trade Bill; in essence, telling Congress they must now pick the lesser of two evils but is climate change what this is really about? China, the world’s largest producer of CO2 and India, another mass producer of the questionable gas, have already said they will not sign an agreement to reduce their Carbon emissions. Best estimates say that the Carbon reduction proposed in the US energy bill will reduce global temperatures by a mere one tenth of one degree Celsius by the year 2050 and the cost factors to achieve this inconsequential reduction stagger the mind.

The implementation of the President’s Energy Bill may show a net decrease in the Carbon emission produced by US industries but the reality is that these Carbon emissions will only have been transferred to foreign nations that have not burdened themselves with self destructive legislative agreements to reduce their Carbon output. This will place the US at a disadvantage as business weighs the cost of these new regulations and that cost difference will drive manufacturers to nations where profitability is still possible. Curiously, this crucial Energy Bill does not place punitive taxes on goods coming from nations that have not agreed to reduce their Carbon output so how serious are we about actually reducing Carbon emissions to “save” the planet? This bill will only allow foreign nations to steal our few remaining industries, forcing millions more into unemployment while facing exponentially rising costs for electricity and fuels right here at home.

Lisa Jackson said something else in a recent speech that is crucial to deciphering the President’s interest in Cap and Trade. Radical Communist Van Jones, former Green Jobs Czar for the Obama administration, had once accused “white polluters” of intentionally steering poisons into minority communities; leaving many of us scratching our heads and wondering what the hell he was talking about. Now Lisa Jackson says that instances of pollution and environmental degradation are disproportionately higher in low income and minority communities across America and to combat this, the EPA is building up their “environmental justice” team. The United States Congress had passed the Clean Air Act in 1963 with major amendments added to strengthen it in 1970 and again, in 1990. Congress followed that with the Clean Water Act in 1972 which was also amended and strengthened in 1977 and 1987. Since we have already entrusted the government with monitoring pollution and gave them the teeth to aggressively fine violators of these comprehensive environmental laws how can there be such an alarming pollution problem in America, let alone a disparity in the distribution of that pollution if the EPA and other Federal agencies were actually doing their jobs?

If the legislation was impotent after two or more amendments or the EPA was disinterested or incapable of performing their duties with the strength of the legislation already at their disposal, then why should we believe that a multi-trillion dollar energy bill will make them any better at what they do? Secondly, if there is irrefutable evidence that there is a disproportionate amount of pollution being steered into low income and minority communities, then a hate crime has been committed and the Justice Department has also fallen down on the job as well. Since Lisa Jackson has been with the EPA for twenty years now….what is her part in this conspiracy? Carol Browner, Obama’s Climate Czar, was the head of the EPA under Bill Clinton so what did she know; when did she know it and does that mean indictments are on the way?

The truth is there is no conspiracy; there is no alarming disparity in the level of pollution by community and there is no climate change that isn’t a natural process of a dynamic earth. This is another attempt at the enactment of this administration’s redistributive wish list because, as Barack Obama said, “I don’t believe in reparations (for slavery) because reparations don’t go far enough.” This is not a redistribution of wealth to level some imaginary Progressive playing field. This is a massive redistribution scheme designed to overturn the entire wealth structure of the United States and any policy instituted by government that seeks to pit one segment of the populace against another, must be by its intent, unconstitutional.

Paul

Monday, February 1, 2010

New Budget - Same Old Story

One would have thought that after the recent Democratic losses in three States, two of which were staunch Democratic areas, that the President would have heard the message from the voters loud and clear. Well, apparently they still can’t hear you. Glenn Beck warned on one of his shows after the Massachusetts victory for Republican Scott Brown that one of two Presidents would emerge from the ashes. Either we would see a politician that would move to the center as Bill Clinton did after his 1994 midterm thrashing or we would see Obama the ideologue stomping on the gas to force his agenda through. For those that didn’t see a glimpse of the ideologue during the State of the Union address we have additional proof today in the President’s budget proposals for 2011.

The budget for FY 2011 announced today will top $3.8 trillion dollars and add another $1.56 trillion dollars to the national debt….if we are lucky. White House Budget Director Peter “Loverboy” Orszag claims that the President’s plans will trim over $1 trillion dollars from the Federal Budget within the next ten years but that is one of the oldest tricks in the books. All the President has to do to achieve that is to announce that they didn’t spend money they were planning to and Viola! $1 trillion dollars has been trimmed from the Federal Budget. It is a phantom trillion, a savings that is as hard to prove as all of the “jobs saved” under the last stimulus bill. Before the President could be able to claim such a savings with authority, he would have to be believable and that is equally as laughable.

President Obama's budget plans project $5.08 trillion in deficit spending over the next five years -- a 35 percent increase over what the administration projected a year ago. Even the current budget deficit is suspect as the revenue figures include income from Cap and Trade; a bill that has not yet passed Congress and if economic conditions do not vastly improve, will never pass. Just in case you have lost track of Cap and Trade, the administration is now trying to sell this massive energy tax under the heading of a “comprehensive energy bill”. Similar to the renaming of global warming to climate change now that the planet appears to be cooling….it still stinks no matter what it is calls.

To spite the President’s call for development of American domestic energy resources during the State of the Union Address, including oil, coal and nuclear power, this budget cuts subsidies for fossil fuels netting a reduction of $31.5 trillion dollars over ten years. That will raise costs for American energy consumers, only adding to the additional costs for energy promised if the President’s energy bill is passed. Pass out the candles folks…the lights are going out if Obama get’s his way. The fact is that either we develop domestic resources as politician Obama promised during his speech or we tax the hell out of them as ideologue Obama promises in his budget. If I had to guess which one to bet on, all I have to do is look at his track record. His speeches have so far, meant nothing while the black and white, tax and spend ink on the pages of his budgets have seized the day. Perhaps I should have said red and white, tax and spend ink?

So where is the attention to the plight of unemployed Americans? Certainly, you won’t find it in this budget proposal. Ever since the inception of the personal income tax under Woodrow Wilson, the historical evidence proves over and over that increases in taxes reduce overall revenue to the treasury because of the negative effect they have on business. Even Obama said that small business provides more than half the jobs in the United States. Whether or not he actually believes that is up for debate but he did say it. They why does every major initiative the President is trying to get passed into law contain oppressive new regulations and massive new taxes that will strangle the number one job creator in the United States?

While the White House happily announces that the mediocre growth of the economy in the last quarter is proof that the recession is easing, much of that growth was brought on by government spending on pet projects that provided little or no relief to the unemployed. The hopeless ideologue and his “progressive friends” in Congress (his words, not mine) still fail to see that government does not create jobs. Only the private sector can create real and lasting employment and only during those odd years when government stops meddling in their affairs. Government can create jobs within their own bloated bureaucracies but those “support” jobs still rely on collecting taxes from income generated by real companies that pay real wages to real employees.

In a quick summary taken from business 101, companies basically have two kinds of employees beyond the owners; sales people that generate revenue for the company and support people that use a portion of that revenue to provide support for the sales people. When times are lean and cuts must be made, the first positions any company will eliminate are support staff because it makes no fiscal sense to eliminate the people that actually earn money for the company. What ideologues and Congressional Progressives still fail to understand is that the Federal government, in its entirety, is the support staff for the American people. We are the revenue generators and there isn’t a nickel they spend that does not come directly from our earnings. Contrary to every known law of fiscal responsibility, the Federal government under the Progressive banner is expanding the support staff of the nation at the expense of the people that actually earn the money. It cannot work.

Every time that the Federal government has cut taxes it has led directly to an expansion of the economy and to the growth of revenues to the treasury. The increases in debt have always come from a spendthrift Congress and their history is to spend every penny they can get their hands on, and more. The best possible ratio of taxes to GDP is 20%. That is when you can afford a reasonable level of government and still maintain decent measure of economic growth. Of course that has to be the real GDP; not one that has been inflated by the influence of government stimulus spending. The other segue is that the taxes collected cannot exclusively be taken from those that are the investors and creators of the businesses that actually create jobs. Only the demented views of the radical left see wealth as an evil worthy of punishment; the rest of us see it as a statement of opportunity and the rewards of hard work. The truth is that I don’t believe they really think wealth is evil. Most of them are wealthy in their own right. They do use the evil rich argument as a tool to gain the support of the average American when they pass tax plans that confiscate unconscionable amounts of that wealth.

There appears to be no recognition in Washington that we are in serious economic trouble and no one but the government has ever proposed that they can spend themselves out of debt. Just a few short years ago, China was purchasing 50% of the notes that fund our annual deficit. Now that the dollar has shrunk thanks to the runaway printing of money at the Federal Reserve, China has lost billions as the interest we paid them to service the debt has diminished over 17% this year alone. The net result is that China only purchased 4% of our deficit spending in 2009 and that is just a portend of things to come.

The balance of our deficit had to be financed elsewhere, with the American people picking up a large part of it. Don’t kid yourself; that is not an indication that the American people have faith in the solvency of the Federal government. That really speaks about the lack of faith in the nation’s banking system. Wary investors are asking the Fed to hold their money, even at zero interest as the last safe haven before they begin dumping dollars and buying gold. When that begins to happen it will signal that events are about to enter a new and dangerous territory….a territory last visited by the Weimar Republic after World War One.

Paul