Showing posts with label deficit spending. Show all posts
Showing posts with label deficit spending. Show all posts

Sunday, November 7, 2010

Debt Wish

Major media outlets reportedly are refusing to run this ad by Citizens Against Government Waste (where I once worked and where my sister, Leslie, still does), because it's been deemed too controversial for public consumption. I think it's a devastatingly-effective wake-up call that every American needs to see and think about.

Isn't it a blessing that the Internet has freed us from our former reliance on the Idea Police in the so-called mainstream media, who take it upon themselves to decide what messages we should, and shouldn't, get? If the networks aren't courageous enough to run this ad, we have alternative means of seeing it, and of sharing it with others.

So defy the MSM censors and pass it along.

Tuesday, August 18, 2009

Born Again Pork-Buster

Barack Obama came out swinging against congressional earmarks (formerly known as pork projects) yesterday, during an appearance before a veterans group in Phoenix. It was a message custom made not just to please the vets but to boost flagging poll numbers:

“Every dollar wasted in our defense budget is a dollar we can’t spend to care for our troops, or protect America or prepare for the future,” Obama told a Veterans of Foreign Wars convention in Phoenix. “If a project doesn’t support our troops, if it does not make America safer, we will not fund it. If a system doesn’t perform, we will terminate it. And if Congress sends me a defense bill loaded with a bunch of pork, I will veto
it.”

But the president hasn't landed a glove on Congressional earmarks in the early rounds of this bout, despite earlier vows to veto earmark-laden spending bills, and the practice of earmarking is bigger than ever in Congress, according to Washington waste-watchers, despite Speaker Pelosi's now hollow-sounding pledge to clean up Congress.

I'll believe it when I see it, in other words. And it will be interesting to see if the president's no-earmarks stance extends to the many non-military spending bills now in the works. If so, he ought to start limbering-up his veto hand now, lest a cold start lead to a repetitive motion injury later this year.

It will also be interesting to see how Obama the government waste warrior deals with another pork-related issue that made headlines yesterday -- a request from American hog farmers for a $250 million federal bailout.

"The [National Pork Producers] council wants the USDA to spend at least $150 million on pork products for various programs, including immediately buying up to $50 million of pork for federal food programs, using fiscal 2009 funds before the fiscal year ends on Sept. 30.

The USDA spent $62.6 million in 2008 buying pork for food programs, according to the council. The producers are also asking Congress to lift a spending cap that limits spending on pork for certain food programs. In addition, the council requested $100 million to help address the H1N1 virus, including $70 million for swine disease surveillance."

The report indicates that it wouldn't be the first time the feds have propped up the industry through pork buy-up programs. This crutch probably accounts for the oversupply of product, which keeps prices lower than some farmers can survive. Propping up the less-efficient producers will only forestall the day of economic reckoning that faces some hog farmers. A bailout may keep consumer prices low, at least at the meat counter, but it does so by picking the publics' pocket with another hand, in order to pay for the hog farmer handouts. The oversupply problem isn't addressed, which leads to a continuing cycle of low prices and government bailouts.

Also hurting hog farmers are "commodity costs that reached record highs last summer," according to the story, though the reporter fails to explain the federal government's role in keeping commodity costs so high. Last summer's spike in oil and gasoline prices undoubtedly played a part in this, but an equally important factor was increased demand for corn, spurred by a government-mandated ethanol craze.

Hog farmers feed their animals corn. But corn suddenly became much more expensive last year, because it was being used for motor fuel, to meet production quotas established by politicians. Ethanol also constitutes a massive rip-off of taxpayers, because we're directly subsidizing, on a per gallon basis, the production of a fuel that doesn't make economic or environmental sense -- but is popular with panacea-pushing politicians. So the hardships being visited on hog farmers are in part the result of federal efforts to benefit corn growers, via ethanol mandates. It's a case study of why government manipulations of the market, through subsidies and mandates, almost always leads to a cascading series of new problems.

Obama can't begin to trim the deficit or debt without at some point saying "no" not just to earmarks, but to the pleading classes that step forward almost daily, asking for a handout. But that's incredibly hard to do when you've already offered direct or indirect bailouts to every conceivable American industry that asked for one.

How can Obama say "no" to hog farmers, when he's already lavished federal money on bankers, brokerage houses and automakers, and when he's spending wildly in a scatter shot approach to economic stimulus? How can he say "no" to legislative branch pork, even while doling out executive branch pork to every wheel that starts squeaking -- or squealing, in the case of pig farmers?

It won't be easy; that's the short answer. But it's the ultimate test of whether this president will ever get a handle on runaway spending.

Monday, June 23, 2008

American Contrarian adapted for The Rocky

A piece of mine appeared in Saturday’s Rocky Mountain News, which was a slightly refined version of something I posted on The American Contrarian a few weeks back (just in case my army of loyal readers missed it). I thank the good folks at the Rocky's editorial page for running it. Neither my original post here, nor the Rocky version, included several key sentences I wanted tacked on to the end, however. They should read as follows:


“No major rules changes or legislative actions are needed to permanently
end the earmarking epidemic. Members of Congress merely need to make a pledge,
individually and collectively, to strictly follow existing budget rules and stop
taking self-serving shortcuts.”

Monday, June 9, 2008

Profiles in porkage

Three news stories, appearing in different parts of the country on the same day, put a human face on the congressional earmarking issue. It’s not a pretty face, to be sure; but a face all the same.

One story profiles a longtime member of Congress who is damn proud of his ability to “bring home the bacon.” He even seems to have kept a tally of his raids on the treasury and brags of personally delivering $7 billion in pork to the district – that’s illion with a capital B, he says. And his constituents evidently loved him for it, given his long tenure. Meet retired Rep. Ken Gray: http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20080609/NEWS01/806090344/1006. Here’s a key quote. "If building hospitals, nursing homes and highways is pork, then I say pass the plate," Gray said, laughing. "Anybody who tells you that the greatest beneficiary of a pork barrel is the provider of the pork is wrong."

Perhaps I’m not alone in being thankful this guy retired.

The second story profiles what might be called the reluctant porker; a member of Congress who claims to oppose most earmarking on principle, recognizing that it’s a corruption of the budget process, but who indulges nonetheless, because he is a practical person. As long as everyone else is doing it, he figures, why shouldn’t I dunk my biscuit in the gravy bowl too? Meet New Jersey Rep. Frank A. LoBiondo: http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20080609/NEWS01/806090344/1006. Here’s a key quote: "I don't believe the people that I represent should be unfairly disadvantaged by my self-imposing a moratorium when everybody else will be advocating on behalf of their constituents," says LoBiondo, who hastens to add that every earmark he sponsors is carefully vetted. Vetted by whom? LoBiondo and his staff, of course.

Finally, you have the relatively rare member of Congress who finds the feeding frenzy repugnant and declines to participate, hoping his constituents will reward him for his fiscal restraint. He may manage to stay in office, but most colleagues give him a wide berth in the cloakroom and at cocktail parties; sort of like the one clean cop in a dirty precinct. Meet California Rep. Devi Nunes: http://www.fresnobee.com/263/story/654409.html. Here’s a key quote: "Earmark decisions are made in smoke-filled rooms by out-of-touch people who have a record of making poor decisions," Nunes said. "The process has enabled corrupt politicians to exploit their offices and is largely based on political patronage." Naturally, this sort of talk, though it has the ring of truth to it, doesn’t make Nunes popular with colleagues. Some suggest he’s even been targeted for retaliation, after crossing swords on a fiscal issue with Rep Jerry Lewis, a prodigious porker who chaired the House Appropriations Committee.

There you have it. Three different members of Congress, three different attitudes toward earmarking. And each tailors his position to fit a constituency.

Some Americans expect their congressperson to plunder at will. They seem driven by a sense of entitlement to get “their fair share” -- though it’s frequently much more than their fair share. Other Americans, though they understand earmarking is wasteful, corrupting and contributes to budget deficits, are pragmatists, who feel (with some justification) they’ll be taken advantage of by the plunderers if their man or woman in Congress doesn’t play the game.

Still others – a decided minority, in seems -- make the connection between high taxes, runaway spending and the total lack of fiscal discipline earmarking bespeaks. This latter group hopes, perhaps forlornly, that a modicum of fiscal discipline might be restored if their representative in Washington, while looking out for their legitimate interests, refrains from trying to bribe them with their own money -- which is what the earmarking racket amounts to.

Which mindset prevails will largely determine whether Congress ever kicks the earmarking habit.