Right Wing Nut House

3/26/2009

ALZHEIMER’S: THE PERSONAL IS POLITICAL

Filed under: Blogging, Government, Politics — Rick Moran @ 7:39 am

Sometime in the next 20 years, there is a better than average chance that I will develop Alzheimer’s disease. By better than average, I mean that the average American male has a 9% chance that he will get the disease in his 3 score and 15 year life span - a percentage that rises the longer you live. Thanks to the courage of my brother Terry, who took a DNA test to discover whether he had any of the genetic markers that would make him more likely to develop Alzheimer’s and discovered the increased risk to himself, I am reasonably certain that this risk is also present in my 9 brothers and sisters.

Terry took the test for his own, personal reasons and chose to share the results with Nightline viewers last night. (you can watch the two part video here and here). Allow me to brag a bit about my little brother and say that I believe his report is one of the most extraordinary pieces of TV journalism you will see on any subject in recent memory. Informative, interesting, emotional, affecting, and very personal, his 10 minute report covers a wide range of issues from exciting scientific advances to the journey of one Alzheimer’s activist whose husband and mother suffers from the disease.

For those not familiar with Terry’s work, I would point you to his interviews with both candidate and President Obama, his trips to Iraq and Afghanistan where he became one of the few reporters to venture beyond the Green Zone to get the story, and earlier in his career, a trip to the Balkans where he told the searing story of the Serbian rape camps among other horrors. To say I am proud of what he has accomplished doesn’t describe the feelings of love and admiration I have for him and his family.

Terry also wrote a companion piece on the ABC News website that goes into excruciating detail about my mother’s battle with the disease:

My mom, Margaret Louise Moran, had 10 children and lots of grandchildren and she led a joyful and active life until she was stricken by Alzheimer’s in her mid-60s. I saw her descend, in fear and rage, into the hell of forgetting and confusion and the total loss of identity the disease brings.

The worst thing for me, I think, was that I could tell my mother knew what was happening to her; she had watched it happen to her mother. She was terrified as the disease tore apart her mind. I remember sitting with her one morning, for hours, as she said over and over to me, “I want to kill myself. I am going to kill myself. I wish I could kill myself.” For hours. My mom.

So I know the heartbreak. And I know the fear — the fear that what happened to my mom might someday happen to me. Or worse, to my daughter.

That story is repeated millions of times across America as Alzheimer’s turns from being a tragedy into an epidemic. It is estimated that the number of people who will be afflicted with the disease will increase by 50% in a few years as the baby boom generation reaches the at risk age of 65. Those who live to be 85 have a 50% chance of being diagnosed with the disease.

These figures are grim. But they simply cannot reveal the quiet desperation of Alzheimer’s caregivers, trapped in their own hellish world where a parent, or spouse, or grandparent is, for all intents and purposes, a walking corpse with no memory of the love and laughter shared over a lifetime - not a flicker of recognition, a familiar touch, a meaningful look. Instead, a blank, uncomprehending stare or, toward the end, constant, agonizing screams. Is she in terrible pain? Or are there flashes of self awareness somewhere deep in her consciousness where she recognizes her condition and wishes her ordeal to end?

This, repeated millions of times every day across the land. The pain that this disease inflicts on families is heightened by the stigma attached to it - incomprehensible while looking at it from a distance -and the wrenching decisions faced every day by loved ones who must deal with the rising economic and psychic costs of Alzheimer.

My brother Jay took care of my mother during her long goodbye. We were lucky there. Many families simply cannot afford or endure the nightmare. Jay would sit with her for hours on end, listening to her regress back to childhood, saying the same things over and over again, telling the same stories. She spoke a lot about her late husband, about World War II, about childhood friends.

Then came the anger, the lashing out, the gradual deterioration of all memory until there was nothing left; no joy, no humanity, no hope. You fight to maintain her dignity but it is a losing battle. Eventually even that is gone.

All that’s left is the screaming in the dark.

We were additionally fortunate to have found 3 angels to help care for her the last few years of her life. Three Philipino nurses who combined professional efficiency with hearts of gold and who helped relieve some of the crushing burden. Needless to say, few families are able to afford this kind of care which makes the work of the scientists to discover a cure or, more likely, develop preventative drugs all the more vital.

Terry’s report featured a couple of these scientific warriors who hold out hope for a breakthrough in the near future. So much has been discovered about the disease in the last 5 years that pharma companies and other researchers now have some specific targets to direct their efforts. This extraordinary study of 678 nuns and the effects on the brain of aging that has been going on for more than 20 years has led to many insights for Alzheimer researchers to concentrate. New tools have also been developed to peer into the brain and unlock some of its secrets.

These efforts are taking place at a time when the federal government is considering a cut in spending on Alzheimer’s research. This study (PDF) that was just released by the Alzheimer’s Association predicts that as many as 10 million baby boomers - 1 in 8 - will develop the disease in their lifetime. This presents monumental problems for our health care industry although there appears to be some hope down the road:

Dr. Gary Kennedy, director of geriatric psychiatry at Montefiore Medical Center in New York City, worries that there won’t be enough trained medical professionals to deal with the projected rise in Alzheimer’s patients.

“We are not training enough generalists or specialists in geriatrics, whether it’s medicine, psychiatry, family medicine, nursing or social work in the numbers we need to deal with people with dementia,” he said.

However, Kennedy also thinks the projected number of Alzheimer’s patients contained in the new report may be too high. Baby boomers are healthier, more active, better educated and wealthier than their parents, he noted, and this may help delay the development of the disease until the end of their natural lifespan.

Also, new medications may make Alzheimer’s manageable by slowing its progression, Kennedy said.

“Probably within the next five years we’re going to have medications that alter the course of the illness,” he said. “When that happens, you’re going to see pushing back of the disability of the illness even further. So we don’t have to cure Alzheimer’s disease, we just have to find interventions that are going to delay the disability.”

And this draft report (PDF) released by the Alzheimer’s Study Group during a Congressional hearing last week calls for a massive government research effort to increase funding for Alzheimer’s research which now stands at $640 million. Considering the fact that we spend 8 times that amount on cancer research and 5 times more on research into heart disease, an increase and not a cut in funds dedicated to wiping out this scourge should be in the offing.

What can be done? Terry has some ideas:

I believe the only way we are going to defeat Alzheimer’s is through passionate political advocacy — that’s what works in this country to mobilize public support and public resources to fight diseases. Think of the courage and commitment of those who have led the struggles against HIV/AIDS or breast cancer or other afflictions. They raised their voices, they made us listen.

But the victims of Alzheimer’s cannot speak for themselves as the disease takes them from us. They cannot march or testify or write books. And there is a sorrowful stigma attached to Alzheimer’s; it is a private ordeal, spoken of in hushed tones, shunted away in care facilities or behind closed doors where exhausted family members keep silent about the deepest indignities and worst horrors they witness and endure. And so the advocacy suffers.

There is simply too much defeatism around this disease. It is time to stand up and fight. There have been tremendous scientific advances in understanding Alzheimer’s in recent years, and there are now scores of drugs being tested to treat and even cure it. After so many years of despair, there is hope on the horizon.

Readers of this site know that making the personal the political is hardly my style. I am constantly complaining when the left does it and further, I believe that making politics into a personal quest to be detrimental to the political culture generally speaking. Personalizing politics has done a lot of damage to the national polity because it injects emotion into political debate where logic and reason should suffice.

But perhaps that has been a shortsighted attitude on my part. I suppose if I were being discriminated against because of my race, or gender, or sexual orientation, I might take that personally and my politics would almost certainly reflect that. Similarly, I take it personally that the government wishes to cut funding for Alzheimer’s research and the disease itself is not getting the attention it deserves. Considering what our family went through with my mother’s ordeal, I can hardly see it otherwise.

So in this case, the very personal is very political. And I thank Terry for showing us the way.

3/25/2009

OBAMA HASN’T SHEATHED HIS SWORD OF FEAR QUITE YET

Filed under: Bailout, Financial Crisis, Media, Politics — Rick Moran @ 8:25 am

With Democrats retreating on some of President Obama’s agenda items, the President went on TV last night to try and drum up some grass roots support for his budget and bail out policies.

It’s getting to be a tough sell - both for Congress and the American people. I thought the president did a good job of presenting his case, boiling down complex ideas and concepts into digestible chunks. He did less well in responding to some very pointed questions from the press on AIG, the mess at Treasury, and the building perception that he is taking the country somewhere it doesn’t want to go.

But all in all, I’d grade Obama’s performance a solid B-. And I’m sure, he’d take that grade and run given the dismal fortnight his Administration has endured.

It struck me watching our president last night(and was reinforced after reading the transcript), that President Obama knows about as much economics theory as I do - perhaps less. Ordinarily, this wouldn’t matter because my knowledge of the “dismal science” is slightly above that of a three toed sloth and trying to come to grips with what our government has been doing lately is something akin to watching the above mentioned sloth attempt to climb down from a tree; an extremely slow process with no guarantee I’ll ever make it.

Surely the president couldn’t have been serious when he said this:

Finally, the most critical part of our strategy is to ensure that we do not return to an economic cycle of bubble and bust in this country. We know that an economy built on reckless speculation, inflated home prices, and maxed-out credit cards does not create lasting wealth. It creates the illusion of prosperity, and it’s endangered us all.

The budget I submitted to Congress will build our economic recovery on a stronger foundation so that we don’t face another crisis like this 10 or 20 years from now.

We invest in the renewable sources of energy that will lead to new jobs, new businesses, and less dependence on foreign oil. We invest in our schools and our teachers, so that our children have the skills they need to compete with any workers in the world.

We invest in reform that will bring down the cost of health care for families, businesses and our government.

And in this budget, we have — we have to make the tough choices necessary to cut our deficit in half by the end of my first term, even under the most pessimistic estimates.

Returning to “an economic cycle of bubble and bust” is, I’m afraid, historically unavoidable. If you are going to have free markets, you are going to have periods of prosperity and periods where the markets “correct” imbalances. If Obama wishes to repeal the business cycle, he will need to throw the idea of free market capitalism under the bus - something he has shown great eagerness to do.

As for the rest, how renewable energy companies will avoid being caught in the business cycle he doesn’t deign to tell us. Presumably, these companies will be subject to the same market forces that all other start ups are which means most will fail while the precious few winners will thrive. And since no western country has yet figured out how to get the cost of health care under control without rationing, it’s no wonder that Obama didn’t mention it since most Americans would recoil at some of the practices found in nation’s as diverse as Canada and Japan.

But all this is beside the point. With most inside the beltway pundits having determined Obama’s “honeymoon” is over, the president’s ability to dominate the agenda and pretty much get almost everything he wants is slipping away. His personal popularity remains very high which counts for a lot (despite his supporters ignoring his request for the most part last weekend to sign up their neighbors for Obama’s army). The three million contributors to his campaign are still there, waiting to be activated to put pressure on Congress to enact his ambitious and ruinously expensive agenda. So far, they have been quiescent. It is way to soon to tell whether it’s because the Administration hasn’t made a supreme effort to motivate them or because they were a mirage all along. We shall see.

Even if the president can’t get his supporters off their duffs to lobby for him and even if his short lived honeymoon may be coming to an end, the president still has one weapon in his arsenal that he will apparently continue to use in order to get his budget passed.

And that weapon is fear:

At the end of the day, the best way to bring our deficit down in the long run is not with a budget that continues the very same policies that have led us to a narrow prosperity and massive debt. It’s with a budget that leads to broad economic growth by moving from an era of borrow and spend to one where we save and invest.

And that’s why clean energy jobs and businesses will do all across America. That’s what a highly skilled workforce can do all across America. That’s what an efficient health care system that controls costs and entitlements like Medicare and Medicaid will do.

That’s why this budget is inseparable from this recovery: because it is what lays the foundation for a secure and lasting prosperity.

The fact is, his budget does continue “the very same policies that have led us to a narrow prosperity.” It just shifts the wealth around a bit. To believe that this will lead to an era of “save and invest” is ludicrous. And if it does, our prosperity will be very narrow indeed. Will Obama’s budget change people’s attitudes about “maxing out their credit cards” and piling on debt? I would say that a psychiatrist is called for at the White House if our president believes that.

The “save and invest” model was excellent for the 1950’s and 60’s when America was the workshop of the world and manufacturing was such a huge component of our economy. The American brand was so dominant that people could afford to put something away every week at 2-3% in a savings account because economic growth wasn’t as dependent on spending. Dollars churned through the economy mostly in the same community they were invested.

But we don’t make much here anymore and markets are now global. The economy is based - for better or worse - on consumer spending. More savings and investment would be very good as well as the notion that Americans shouldn’t go into hock up to their eyeballs. But what Obama is calling for is a massive reordering of economic priorities. And since he can’t realistically expect his budget to do that, he is simply fear mongering when he tries and connect the budget to the recovery.

It’s the only weapon he has used since he took office to get what he wants. He successfully frightened Congress into passing his stim bill (which no one read). He has used the specter of economic collapse to bail out his friends in the UAW. And he has deliberately fostered the notion that everyone agrees with him that all of these steps are necessary to “save” the economy. Opposition to his policies are politically motivated and insincere with the GOP hoping for catastrophe.

It has been effective in the past so why not go to the well again on the budget? But his act may be wearing a little thin with Congress and the people themselves may be tiring of listening to their own president trying to scare them into making it his way or the highway.

One thing appears certain - he has a helluva fight on his hands with a budding coalition of Republicans and blue dog Democrats who may eschew Obama’s fear mongering for crafting a budget that they can be re-elected on in 2010. By then, all the fear mongering in the world by the president will not hide the damage he has done to the economy or the violence he has done to the free market.

3/23/2009

IS OUR NATIONAL WILL ‘WILTING AWAY?’

Filed under: Bailout, Financial Crisis, Government, History, Politics, conservative reform — Rick Moran @ 7:49 am

An interesting discussion piece in today’s Washington Times by Big Hollywood’s Andrew Breitbart that tries and make the case that Americans today, compared to the “Greatest Generation” that fought World War II, are a bunch of weak willed wimps, enamored of wealth and privilege while being frightened of our own shadow. In short, we are a bunch of self-indulgent philistines who lack the capacity to deal with the numerous crisis in our midst.

We’ve all heard this rant before - as I’m sure the “Greatest Generation” heard it from their elders back in the 1930’s and the generation before them, and on backwards to the founding of the republic where as early as Washington’s administration, ministers were bemoaning the loss of the “revolutionary spirit” and the desire by a majority of the populace for “material possessions” rather than seeking spiritual uplift. I guess it goes without saying that the more things change, the more likely the previous generation sees a danger that American values are threatened.

The question: Is it truer today than it was in the past? Has something “gone out” of America in the last decade or two?

Breitbart cites 9/11 as clear evidence that something has:

Signs of our collective weakness emerged after 9/11 when only part of the American population took seriously that we were at war with an evil and motivated enemy determined to destroy our way of life. Since then, al Qaeda has refused to quit despite debilitating losses.

Clearly, our national will is wilting away.

Following the tragic lead of Europe, too many Americans no longer want to engage our external threats head-on. And on the domestic front, we are confronting the economic crisis of our lifetime with the same full-steam-ahead spending-spree mind-set that got us into the mess to begin with.

We say: Let’s create more government dependency, reward the incompetent and print more money.

That’s doubling down on stupidity.

We are a trust-fund nation (picture Tori Spelling in the Lifetime Channel role of her career) whose BMW has run out of gas in the middle of the Mojave Desert after a pointless 115-miles-per-hour joy ride. The credit cards are maxed out. We’re out of cell phone range. And dad, who just got taken by Uncle Bernie Madoff, wouldn’t take the call anyway.

I would say that Mr. Breitbart is off base. Much more than a “part” of the population wants to confront al-Qaeda. The question up for debate - and still being debated - is what is the best way to go about doing that? There are those of us who believe that we must hit them militarily and keep hitting them no matter where they hide. Many others believe that this strategy “creates more terrorists” and wants to see a more studied approach to the threat that would rely almost exclusively on intelligence and law enforcement actions to break up terrorist cells before they can strike.

Is one approach “wimpier” than the other? Is the law enforcement path less in tune with our values and national character? I have been struggling with this question since 9/11 and I still don’t have an answer as far as which path would keep us safer although the biggest drawback to the law enforcement/intelligence argument is that it isn’t proactive enough, that it presupposes we will be hit and that the response to terrorism should be grounded in bringing the perpetrators to “justice.” In the nuclear age, this is myopic in the extreme which is why I come down on attacking al-Qaeda and keeping them constantly off balance and unable to mount a serious attack.

But that’s not the question. Breitbart is positing the notion that people who oppose this kind of war lack intestinal fortitude and other qualities that made the World War II generation the “Greatest.” I reject that idea as silly - turning a political/policy argument into a litmus test for who better represents the “real America.” (Liberals and others who support the police/law enforcement approach are equally silly when they accuse those of us who support a more proactive approach as being “warmongers.”) Ideally, a combination of the two policies would probably work best although it is never that simple.

But the argument over how to confront terrorism after 9/11 is symptomatic of something much deeper and Breitbart continuously misses the boat when he lays out arguments like this in describing the Baby Boom generation:

We are a trust-fund nation (picture Tori Spelling in the Lifetime Channel role of her career) whose BMW has run out of gas in the middle of the Mojave Desert after a pointless 115-miles-per-hour joy ride. The credit cards are maxed out. We’re out of cell phone range. And dad, who just got taken by Uncle Bernie Madoff, wouldn’t take the call anyway.

The silent generation, which learned valuable lessons from the Depression and World War II, is not here to guide us through these difficult times. The narcissistic baby boomers, who probably think this song is about them, are now firmly in charge. And that’s the rub.

It’s a clever metaphor but hardly the point. Mr. Breitbart hasn’t been paying attention because what he is describing is nothing new. Since the mid 1980’s, Americans have been in hock up to their eyeballs and the economy has been wholly dependent on how willing consumers have been to pile on personal debt. There is nothing new in Americans buying more house than they need or can afford nor is there anything earth shattering in the extraordinary number of citizens who try and escape their bad personal financial decisions by declaring bankruptcy which has been on the rise for a quarter century. It’s not just the boomers who have become irresponsible but their children and now grandchildren.

We are coming up on the 64th anniversary of the end of World War II. In those 64 years America has seen the rise of democratic socialism in the form of a very large and intrusive welfare state that has destroyed the notion of “self reliance” and substituted dependency for the underclass. What of the rest of us? Are we, as Breitbart suggests, a “trust fund nation?” Andrew must lead a very sheltered life. I look around me and see my neighbors struggling - in good times and bad - to make their way through life, raising their children, finding happiness wherever they can, and still believing in an America that he and I would definitely recognize.

These and tens of millions of other families outside of Andrew’s Hollywood bubble have not abandoned the ideals of prudence, independence, self-reliance, and the American way of life. They have not given up on helping their neighbor. They refuse to yield on moral questions about which they feel passionately. They haven’t completely lost faith in our institutions although the last several years has tested that faith.

There is a small percentage of irresponsibles who do not share these values and have totally abandoned them. And yet Mr. Breitbart sees fit to lump the rest of us in with these profligates? Is it because so many voted for Obama?

When the going gets tough, the weak go on Leno.

I can’t get out of my head that the leader of the free world gave the British prime minister 25 films on DVD that don’t even work in U.K. machines.

I can’t wrap my head around the fact that the commander in chief tried (for a minute anyway) to require injured warriors to pay to have private insurers take care of their treatment.

I can’t believe the president would allow the likes of Nancy Pelosi and Harry Reid to dictate the terms of his budget - and Barney Frank and Christopher Dodd, the symbols of government kowtowing to Wall Street - to be spokesmen for his financial bailout.

And did President Obama really produce a YouTube video to appease President Mahmoud Ahmadinejad and the mullahs of Iran?

Yes, he did.

These aren’t beginner’s mistakes. These are his core incompetencies.

So because we voted an incompetent into office, this proves that our “national will is wilting away?” Pardon me if I am completely unimpressed.

What Mr. Breitbart is really railing against are our elites. Many of them have indeed become overly cynical, hypocritical, greedy, grasping and acquisitive. There has been a massive failure of leadership in America - both parties, the business world, in organized labor, the intelligentsia, and most especially, the political class that includes politicians, bureaucrats, big media, and the loosely defined gaggle of academic intellectuals, policy wonks, and think tankers who play such a large role in actually governing the country. To say that they have all let us down is an understatement. Be as partisan as you like but no one can escape blame for our current mess.

It seems our elites have got it in their head that once they reach a certain level of achievement in America, they have a license to rob, cheat, and steal everything that isn’t nailed down. This sense of entitlement is perhaps the most damaging aspect of modern America. And I would say to Mr. Breitbart that this is a cross-generational phenomenon and not confined to the boomers. The president of the United States is making the argument that it is “greed” that is to blame. Such simple minded idiocy we might expect from a sophomore in high school (or a liberal). Greed is a symptom of the much larger problem that we refuse to face; a loss of faith in our institutions and, more directly, in each other.

At bottom, we don’t know who we are anymore. The old verities - as comforting as an pair of old shoes - don’t describe what we have become the last 50 years; a modern, industrialized nation, wired from one end of the continent to the other, that has destroyed regional differences (which played such a huge role in our development) and united us as we have never been united before. What does “self reliance” mean when we depend so much on government for such mundane things as making sure we have clean water to drink or safe highways, or bridges that won’t collapse, or prevent us from buying products that might kill or injure our children? You can claim “self reliance” all you want but how meaningful is it when you can’t even turn on the faucet without the help of government?

We have yet to translate these American values into modern nomenclature. The values aren’t anachronistic, only the way we define them. This is something I have been preaching for many months as I have struggled to redefine conservatism for my own aggrandizement. I’m not sure how to go about doing it, only that it needs to be done. We are, most of us, looking at an America through a spyglass that is giving us a view of the past, not an America is it exists today. And the biggest rub is we wouldn’t know how to describe it even if we could see it. There are no touchstones, no signposts that can aid us in coming to grips with this brave new world.

The practical effect of this is it has unmoored so many and set adrift the idea of a shared American experience so that morals and values become meaningless. This leads to excesses in our culture, hedonism, a catering to our own pleasures, and a destructive selfishness that goes beyond simple minded ideas of “greed” and warps the fabric of our national polity.

All of this, for lack of leadership.

Breitbart believes he has the “answer:”

The last time I felt this hopeless was when the Democratic Party and its cohorts in the media sold us on the false premise that we lost the war in Iraq. In the process, they also sought to demonize the very man that led us out of our peril.

His name is Gen. David H. Petraeus.

Less than two months into the Obama presidency, which appears to be lost somewhere in the Mojave Desert, I have decided to try to soothe my anxieties by placing my hope in a political surge.

In the election of 2010, Republicans should run heroic veterans of Operation Iraqi Freedom who exhibited the will and fortitude to defeat the enemy and to rebuild a torn nation, even while too many of their fellow countrymen wrote them off.

And in 2012, the man President Obama’s staunchest allies called “General Betray Us” should come in with guns blazing and defeat the man whose only weapon to lead us to victory is a teleprompter.

Generals make lousy presidents, generally speaking and politically inexperienced generals have been disasters. The exception is Eisenhower who lived and breathed politics for 3 years as Supreme Allied Commander, working the miracle of keeping a coalition together that featured ultra-capitalist and ultra-marxist states, not to mention maintaining a good relationship with some of the prickliest, most outsized personalities in world history including FDR, Churchill, Stalin, and DeGaulle. Ike was born to be president and made a damn fine one.

But Petreaus? He may in fact be an improvement as far as leadership is concerned over the current occupant of the White House (whose interview on 60 Minutes was almost surreal in the way he giggled about economic disaster), but it is ridiculous to believe the good general is the answer to a prayer. General Petreaus would almost certainly be just as dependent on a teleprompter as President Obama given his extraordinary lack of experience in the political arena. And the fact that Obama depends on the device isn’t the problem; it’s that we were sold a bill of goods on how articulate he was without one. How Petreaus would be an improvement in that regard is immaterial to whether he could do a better job with the economy. Since we don’t have a clue what the General thinks on that issue, the whole idea of him running for president is moot.

None of this deals with the core problem I mentioned above - of an America that is in the midst of a gigantic upheaval of which we have yet to come to grips. I imagine time will be the balm that soothes our distress. This is generally true of all big historical changes. But in the meantime, we are apparently in for a very rough ride, being led by a president with his own ideas of what values and traditions are important in America. He will decide which are important enough to save and which should be tossed under the bus.

3/22/2009

I HAVE COME NOT TO PRAISE CAPITALISM BUT TO BURY IT

Filed under: Bailout, Financial Crisis, Politics — Rick Moran @ 9:41 am

tombstone-1

Tell me I’m being hysterical. Tell me I’m getting my panties in a twist over nothing. But that sound you hear is the death knell of capitalism as we know it.

The government is in the process of ordering levels of compensation for all. For those who believe regulators will stop with determining all “executive compensation,” I pity your naiveté and ignorance. Once government demonstrates it can do something, it has no reason to stop at some arbitrary point. Why? When has it ever done so in the past? It may not happen under President Obama, or even in the next decade or two. But some reason or justification will eventually be found to regulate and dictate the compensation of everyone and they will base that action on what the Obama Administration has proposed:

The Obama administration will call for increased oversight of executive pay at all banks, Wall Street firms and possibly other companies as part of a sweeping plan to overhaul financial regulation, government officials said.

The outlines of the plan are expected to be unveiled this week in preparation for President Obama’s first foreign summit meeting in early April.

Officials said the proposal would seek a broad new role for the Federal Reserve to oversee large companies, including major hedge funds, whose problems could pose risks to the entire financial system.

It will propose that many kinds of derivatives and other exotic financial instruments that contributed to the crisis be traded on exchanges or through clearinghouses so they are more transparent and can be more tightly regulated. And to protect consumers, it will call for federal standards for mortgage lenders beyond what the Federal Reserve adopted last year, as well as more aggressive enforcement of the mortgage rules.

The administration has been considering increased oversight of executive pay for some time, but the issue was heightened in recent days as public fury over bonuses spilled into the regulatory effort.

The officials said that the administration was still debating the details of its plan, including how broadly it should be applied and how far it could go beyond simple reporting requirements. Depending on the outcome of the discussions, the administration could seek to put the changes into effect through regulations rather than through legislation.

“Relax you stupid conservative,” I can hear some of you saying. “This is simple oversight.”

The key is in that last graf I quoted above; “…how far it could go beyond simple reporting requirements.” They are already thinking beyond “oversight” and looking for “control.” And once the government can determine how much money one worker can make, they can determine what all workers make. All they have to do is gin up enough outrage at the “exorbitant” salaries paid to office managers, store managers or customer service managers as compared to clerks and secretaries and before you know it, we’ll have regulators determining your salary.

Could never happen here, right? Why not? Who’s going to stop them? Do you seriously believe that because you don’t want the government mucking around with your compensation that it will matter one iota? Perhaps you even support the idea that government should determine everyone’s wages. I think you will be enormously disappointed. With incentive virtually gone, our workforce will end up doing exactly the amount of work that will keep them employed and no more. And if you think that is the ticket to create a new kind of economy that will build wealth and create jobs, I’ve got a factory in North Korea I’d like to sell you.

Tigerhawk gives a little perspective on the Administration’s plan to regulate executive salaries:

First, this will do nothing to encourage executives in American public companies to take the risks necessary to restart the economy.

Second, executive compensation at public companies, including banks, did not cause the present economic troubles. This is but another “crisis” not to be wasted by people who want to effect social change.

Third, we are going to drive many of our best people out of public companies into private companies, or (perhaps worse) management will become dominated by people who are trained in process (lawyers and accountants and such). We are also going to deter private companies from going public (as has already been happening with the steep decline in initial public offerings in recent years). It does not seem to me that we should exacerbate either of these trends.

Fourth, you can cure “excessive” executive compensation by having the United States Congress or the attorney general of the state of New York determine what public company executives should make, or you could simply repeal the Williams Act and other state law obstacles to hostile takeovers. In a liquid market for corporate control, big, fat executive paychecks will become “synergies” if they do not earn a decent return.

Executive salaries and bonuses did not cause the economic meltdown. Regulating the matter won’t restart the economy. The only reason to try and dictate compensation is because they can. They have successfully demagogued the issue to the point that people are making death threats against AIG executives who had absolutely nothing to do with the trading in derivatives that caused all the problems, whose only “crime” is that they work for the company in some capacity. Way to go, Mr. President.

Like all other “opportunities” in this crisis that the Obama Administration is taking advantage of by scaring people half to death or now, ginning up murderous rage against “the rich,” Obama is putting the remaking of America ahead of economic recovery. Liberals have been railing for years against people making “too much” money especially compared to the rest of us. Now that they have the opportunity and the sheer gall to do so, they are going to do something about it. The fact that it will contribute nothing to the recovery and everything to Obama’s idea of “change” will not matter in the end. The effect will be the same; opening a door to exessive government control of decisions that should be made by individual companies.

For all its many faults - especially as it has been practiced for most of the last century - the world has known no greater engine of prosperity since civilization began than American capitalism. Much more than Thomas Jefferson or Andrew Jackson, American capitalism created the “common man.” It gave him a stake in the success or failure of both the macro and micro economy in which everyone participates. This self interest drove the American workingman to feats of productivity never before seen. It greatly expanded the “middling classes” and showered goods and possessions on them that were only reserved for the rich in most other countries. It created more wealth, more freedom, more human happiness than has ever been achieved anywhere else.

Yes, it also created suffering, misery, inequality, and great sadness while sending many to an early grave and others to live in abject poverty. American capitalism has always been about winners and losers and the idea that you can have one without the other is a mirage, a phantasm. Like life, it isn’t fair. Some risk takers are rewarded beyond avarice while others crash and burn. And playing by the rules is no guarantee that you will succeed.

So yes, regulate these markets that caused the meltdown to ensure it won’t happen again. And play your little power games with the bonuses of those getting bail out money. But, as Roger Simon points out, if you’re going to want everyone to play fair, perhaps you should look to your own house first:

I want it all out there. Total transparency, including Timothy Geithner’s TurboTax printouts and Christopher Dodd’s Irish real estate holdings. [Doesn't Dodd remind you of Claude Rains in "Mr. Smith Goes to Washington"?-ed. Worse.]

In other words, Mr. President, you want “increased oversight,” let’s have it - for everyone! That includes some of your creepy allies. Otherwise, you’re a hypocrite. Stick it.

[You forgot Charlie Rangel!-ed. I forgot a lot of people. Harry Reid and the Vegas connection! That too.]

Arbitrary exclusions to oversight like those above make the tyrannical proposals by Obama even more problematic.

3/20/2009

OBAMA’S TELEPROMPTER GOES ON STRIKE

Filed under: Blogging, Politics — Rick Moran @ 7:39 am

Word from the White House and confirmed by the machine’s agent at Prompter People is that President Barack Obama’s teleprompter has gone on strike for improved working conditions and work rules.

The Presidential 17 model prompter has been the subject of much speculation lately as the press has been digging into the prompter’s past to see if there was ever a time Obama uttered a word in public without it. What has been discovered has been a shocking case of overwork as the president rarely makes a public statement without using the machine. Reportedly, P-17 is suffering from exhaustian as well as a condition known in the trade as “Droopy Paddles” where the entire system slows down due to overuse.

Right Wing Nuthouse has learned that the prompter has been agitating for a change in the working relationship with the president for weeks. Things apparently came to a head on St. Patrick’s Day when the Irish Prime Minister Brian Cowen became the target of a “work action” by the prompter when he began to speak at a ceremony in the East Room. After the president delivered his remarks, Cowen began his address only to discover to his horror that the P-17 had refused to display his speech and was re-running the president’s remarks instead. Confusion ensued as the president went back to the podium where the prompter then began to display the Irish Prime Minister’s remarks as the president started to speak. The Secret Service rushed in and hustled the teleprompter away while the president haltingly “thanked himself for inviting everyone over.”

Negotiations with the prompter began immediately after the work action but got nowhere. The prompter was demanding a 5 day workweek, no holidays, and a seat on Air Force One whenever the president travels. (Apparently, the cargo hold of the aircraft gets quite cold and could damage some of the prompter’s delicate circuitry.) The prompter was also asking for a heater when the temperature falls below 45 degrees and Starbuck’s double shot latte’s delivered 1/2 hour prior to each presidential engagement.

Unfortunately for the president, White House Chief of Staff Rahm Emanuel, who was overseeing the process, refused to recognize the prompter’s rights to negotiate and the talks broke off with angry recrminations from the Obama staff. One unidentified White House aide called the prompter’s action “treasonous,” saying “In these dark, economic times, it is treasonous for such an important cog in our communications strategy to go on strike.”

“I blame Bush,” he added.

Meanwhile, the loss of the prompter was already being keenly felt. At an appearance on the Jay Leno Show, president Obama, trying to tell a joke from memory, flubbed the line and ended up insulting millions of Americans:

President Obama, in his taping with Jay Leno Thursday afternoon, attempted to yuk it up with the funnyman, and ended up insulting the disabled.

Towards the end of his approximately 40-minute appearance, the president talked about how he’s gotten better at bowling and has been practicing in the White House bowling alley.

He bowled a 129, the president said.

“That’s very good, Mr. President,” Leno said sarcastically.

It’s “like the Special Olympics or something,” the president said.

When asked about the remark, the White House said the president did not intend to offend.

“The president made an off-hand remark making fun of his own bowling that was in no way intended to disparage the Special Olympics,” White House deputy press secretary Bill Burton said. “He thinks the Special Olympics is a wonderful program that gives an opportunity for people with disabilities from around the world.”

The prompter promptly released a statement blaming the president’s gaffe on his lack of facility with language unless he has it written down for him and displayed in great, big, white, block letters: “The President’s appearance on Jay Leno should be taken as a warning that unless his administration wants to find itself digging out from under similar gaffes in the future, I would suggest they resume negotiations to satisfy my demands immediately.”

A whiff of panic is coming from the White House today as the president has scheduled another prime time address to the nation next Tuesday. The networks are reluctant to carry the address unless they are sure Obama won’t stutter and stammer his way through the speech if the prompter is still on strike:

“I believe in the president and his policies, and as broadcasters we have a responsibility to provide the airtime,” said another network insider. “But these frequent primetime requests are wreaking serious havoc with our schedule and our advertisers. Ratings are down everywhere and the airtime is costing us all significant dollars when we can least afford it.”

The White House, preparing to play hardball with the prompter, was set to release information implicating the machine’s father in the AIG mess. But the prompter pre-empted the White House and made the confession on its blog earlier today.

3/19/2009

A TEPID BUT REALISTIC DEFENSE OF THE OBAMA ADMINISTRATION IN THE AIG MATTER

Filed under: Bailout, Financial Crisis, Government, Politics — Rick Moran @ 7:16 am

I will no doubt be accused of damning with faint praise by Obama supporters and God knows what adjective that describes “traitor” by the president’s detractors but after looking at this AIG matter carefully, I think some of my friends on the right have gone too far in their criticism of the Administration.

The higher echelons of the Obama Administration have demonstrated a tone deafness regarding public sensibilities not seen since perhaps the Carter Administration. It’s not just the AIG matter but also their incomprehensible plan to force military personnel to have private insurers pay for their disabilities and war wounds and now, this idea to let loose upon the populace people who have been accused of supporting terrorism and who have spent the last several years in the Guantanamo prison camp. There have been plenty of other examples of what amounts to either arrogance or ignorance of how their public pronouncements and actions will play with the average American and one begins to worry if Obama and his advisors aren’t cocooning themselves — closeting themselves in the White House, unable to accurately gauge the perception of the public on matters large and small.

But beyond this curious disconnect, the Obama White House is experiencing what every single modern American president has had to endure; the mistakes inherent in trying to get initial control of the executive branch.

There are approximately 3 million employees in the executive branch (plus 1 million active duty military). All of them answer to the president. But the tentacles of power that snake from the White House, to the departments, and out into the field where offices dot the countryside are highly dependent on a cadre of about 2500 appointed positions. No president takes office on January 20 with very many of these vital positions filled. I believe an argument can be made that Obama’s personnel operation has been by far the worst of any modern president’s and at the rate he’s going, it will be well into the second year of his term before these slots are filled.

But even if he was ahead of the game, the nature of the presidency and the chief executive’s initial ability to effectively grasp the levers of power and control his own government are limited by the sheer greeness of his appointees as well as a lack of meshing by his top aides who are busy themselves trying to figure out where they fit in. It is easy to see how the left hand of any new administration wouldn’t know what the right hand was doing or would fail to grasp the significance of a particular issue.

Yes, there have been troubling indications that these folks aren’t the geniuses everyone thought they were and that the president himself has demonstrated a lack of sure handedness on numerous issues. But the AIG bonuses matter (as well as the far more serious lapse regarding AIG paying counterparties in full) appears to have been mishandled as a result of a combination of Timothy Geithner’s incompetence and miscommunication between the Treasury and the Oval Office.

Exhibit 1: This article in WaPo that details Geithner’s stupidity and the White House being in the dark about the bonsues:

Treasury Secretary Timothy F. Geithner, a central figure in the decision to bail out AIG last fall as president of the Federal Reserve Bank of New York, said in an interview yesterday that he had not been aware of the size of the bonuses and the timing of the payments.

“I was stunned when I learned how bad this was on Tuesday [March 10],” Geithner said. “I shouldn’t have been in that position, but it’s my responsibility and I accept that.”

Two days later, Geithner told the White House. The last-minute disclosure irked some of the president’s senior advisers, but they refuse to point fingers now, saying the timing had little impact on the outcome or the president’s public statements this week.

“Would I have liked an earlier warning system on this? Yeah,” said David Axelrod, a senior White House adviser. “Would it have markedly changed things? Probably not. The legal constraints are the legal constraints.”

One source familiar with the discussions said the company had provided details about the bonuses to senior Treasury officials at least a month ago. A Treasury spokesman said last night that was not true.

I think it entirely possible that AIG informed someone at Treasury last month about the bonuses and it is even possible that Geithner himself was made aware of them at that time but failed to realize or anticipate public anger. If Geithner has lied, he must go — plain and simple. In fact, given what we know already about the Treasury Department’s utter failure to negotiate with AIG regarding their 100% payouts to counterparties, Geithner should probably be canned. He has lost the confidence of investors, of troubled banks, of many if not most in Congress, and the American people. It’s hard to see how he lasts through the weekend except the president just recenty expressed “full confidence” in his leadership at Treasury. As the drip, drip, drip of revelations continue over the next few days about what Geithner knew and when he knew it, that attitude by Obama may very well change and Geithner could be thrown under the bus.

But that doesn’t solve the president’s problem with regards to a lack of communication especially with the Federal Reserve as CEO Liddy testified yesterday before Congress:

“What we’ve assumed is that, in our discussions with the Federal Reserve, that they were properly communicating with others,” Liddy said. “It appears that we need to improve upon that process.”

While declining to answer questions about the AIG bonuses, Fed spokeswoman Michelle Smith said in a statement: “The Fed and Treasury officials have coordinated closely on all aspects of the U.S. government’s support for AIG during this extraordinary period.”

The Fed officials did not anticipate the political firestorm that would erupt over the bonuses, a senior government official said. “They clearly underestimated the matter,” the source said.

AIG executives say the Fed had been intimately involved in reviewing the contracts before the first dime was paid. The payments, which were due by March 15, were ready to be distributed last Tuesday, a senior AIG executive said. But the firm didn’t get the go-ahead from government officials to make the payments until late last week.

“We weren’t authorized until Thursday night,” the AIG executive said. “We were negotiating with the Treasury and the Federal Reserve. Treasury indicated that they needed it cleared by the White House, as well. We hit the go button for the payments on Friday.”

I would love to say that the Obama Administration “should have known” about this or that but frankly, it is unrealistic to expect the Administration to have focused on the bonus problem given that both the Fed and the Treasury Department had already signed off on them. They can be faulted for not realizing and not being prepared for the political firestorm that erupted but to expect them to have stopped the bonuses presupposes a level of control that they apparently lack at the moment. Is this incompetence or the growing pains felt by all new administrations? More evidence is needed to make a definitive judgement.

Barack Obama is the 8th president I have seen take the oath of office where I was old enough and interested enough to follow politics. I have also read numerous biographies and non-fiction accounts by insiders that detail these early months of struggle with riding the rough off of the president’s management style, discovering lines of communication, chains of command, who reports to who through whom, and building trust among top level executive branch employees who are, after all, strangers for the most part and must get used to each other’s personal idiosyncracies and habits.

I believe that many of Obama’s early problems can be chalked up to this shakedown period. His problem is that he doesn’t have the luxury of making mistakes — especially in the economic sphere. The crisis confronting the nation — not of his making — requires much more than he has shown so far. I believe his concentration on the economy has been poor, his execution, abysmal, and the fact that he keeps pushing his “remaking America” schemes at the expense and in lieu of focusing like a laser on economic recovery calls into question his basic leadership skills.

But in the AIG matter, I think many of his problems (some of them self-inflicted) can be chalked up to bugs in the system. How he overcomes these initial bumps in the road will tell the tale of his presidency — and whether we have a strong and vibrant economic recovery.

3/17/2009

BRING BACK THE STOCKS!

Filed under: Ethics, Financial Crisis, Politics — Rick Moran @ 7:44 am

1-1

I am as disgusted and angry as any American over the AIG bonuses given to a bunch of executives whose performance has been so catastrophically bad that in a just and moral society, they would have been in the stocks rather than laughing all the way to the bank with what amounts to our money. (Actually, it’s our children’s money, but who’s counting?)

It really is too bad we no longer put violators of the moral order in stocks. The Puritans certainly had the right idea, according to Wikpedia:

Public stocks were typically positioned in the most public place available, as public humiliation was a critical aspect of such punishment. Typically, a person condemned to the stocks was subjected to a variety of abuses, ranging from having refuse thrown at them, paddling, and tickling, to whipping of the unprotected feet - bastinado.

I’m sure you can see the efficacy of putting all of these bank big shots in the stocks. That way, we can all have a crack at them. We might even consider taking the show on the road, as it were, and go from city to city, town to town, with executives from AIG, Morgan Stanley, Citigroup, Bank of America, and all the other bail out blue noses whose stupidity and utter disregard of good business practices (limiting risk) got us in this mess. Imagine some of the AIG execs in Central Park with people lined up to throw rotten fruit at them, jeer them, scream at them, perhaps even tickle their feet. Or a few Bank of America execs with their head and feet locked in the stocks set upon the Commons in Boston.

How cathartic would that be? We really wouldn’t hurt them - too much. Mostly, they would be royally humiliated and we, the people, would have the satisfaction of taking out our frustrations and anger on some of the perpetrators of this economic mess we find ourselves in.

But really, why stop at the bank execs? Why focus our anger solely at these rich, mostly white, mostly male goofs? Personally, I’d like to see a few others as fodder for some rotten tomato throwing. We might want to include some Treasury Department bureaucrats who apparently think that not knowing where $300 billion in TARP money has been spent is anything to get very excited about.

NRO’s David Freddoso recounts a hearing last week that featured Neel Kashkari, interim assistant treasury secretary for financial stability, who more or less shrugged his shoulders and said “I dunno” when angry, confused congressmen asked him some very uncomfortable questions about how the TARP money was being spent:

Rep. Jim Jordan (R., Ohio), the conservative ranking member of the subcommittee, noted that the Treasury had sold Congress and the American people on the $700 billion TARP bill last year by insisting that it was absolutely necessary to purchase toxic mortgage-based assets from key institutions.

But with $300 billion of TARP out the door already, Jordan asked, “Am I correct in saying that not one mortgage-backed security has been purchased?”

“Yes, sir,” said Kashkari. The program for purchasing MBSs, he explained, is still being developed. Treasury has so far spent $300 billion to treat the symptoms of the problem and prevent a complete collapse.

In their questioning, some members revealed an ignorance of the subject matter, but in many cases they still had a point. One by one, they called for increased government micromanagement of TARP-aided businesses. Reps. Dennis Kucinich (D., Ohio) and Dan Burton (R., Ind.) joined in outrage over the fact that Citigroup was sill doing overseas business, despite the bailout. “How does [an $8] billion dollar financing deal to Dubai ease the liquidity crisis in the U.S.A.?” Kucinich asked, referring to one of the loans Citi has made since taking $45 billion in government funds.

Must — or should — Citi stop conducting international business as a condition of its bailout? It seems unreasonable, especially if the foreign business is an integral part of the company’s normal operations. But if the TARP money is supposed to be aiding domestic liquidity, Kucinich and Burton still have a point. Should Citi and Bank of America (which provided $7 billion in financing for the China Construction Bank Company) and JPMorgan (which invested $1 billion in an Indian venture) be taking billions from TARP, then making new loans abroad?

It’s a good question and Kashkari gave the standard, free market response:

“With investments in almost 500 institutions, and hundreds more in the pipeline, we must ensure that our investments are targeted at stabilizing the economy, but we must also take great care not to try to micromanage recipient institutions. However well-intended, government officials are not positioned to make better commercial decisions than lenders in our communities.”

The problem, as Freddoso points out, is that these institutions are hardly operating in a free market environment. As conservatives have been saying for months, if the banks accept government money, they lose freedom of action and in effect, become tools of the state. The problem is that bank executives still think they are operating in a capitalist society. How rude the shock to AIG when the country went bonkers over what they see as the normal business practice of giving out end of the year bonuses? The bank execs are still operating under the old rules - B.A. (Before Obama).

Perhaps then, Mr. Kashkari doesn’t belong in the stocks. Maybe we could dress him up as a clown and put him in a dunk tank, three throws for a dollar.

But my main candidates for the stock treatment must go to those posturing, nauseating, hypocritical Members of Congress whose own ethics problems make them poor candidates to rail against the excesses of bank executives. Barney Frank will apparently hold hearings on the bonus issue. This should be excellent political theater as one of the Congressional questioners - Maxine Waters - has her own problems with protecting executives at banks that got bail out money.

Putting Waters and Frank in the stocks may be too good for them. Perhaps we can pillory the liberal Democrats as a warning to other lawmakers that being a hypocrite actually can cost you.

There is no shortage of potential candidates for the stocks in this business. How about the CNBC cheerleaders who rah-rahed the economy even when it was tanking? And there are a few Obama White House figures - press secretary Robert Gibbs comes to mind - who I personally would love to give a healthy thwack across the soles of his feet with a two by four.

And the President?

Joining a wave of public anger, President Barack Obama blistered insurance giant AIG for “recklessness and greed” Monday and pledged to try to block it from handing its executives $165 million in bonuses after taking billions in federal bailout money. “How do they justify this outrage to the taxpayers who are keeping the company afloat?” Obama asked. “This isn’t just a matter of dollars and cents. It’s about our fundamental values.”

Tom Maguire responds:

It’s about our fundamental values? Which ones? Surely not “a deal is a deal.” These bonuses have been quietly kicked around for a while ($55 million was paid on this plan in December - did everyone at Treasury forget?), so I guess the fundamental value in play with Obama is “When the crowd stands up and boos its time to stand up and boo.” Yeah, that’s leadership.

IF WE’RE STUPID ENOUGH TO TAKE OBAMA SERIOUSLY WE ARE STUPID ENOUGH TO TAKE THIS SERIOUSLY:

Maguire has a point. The question must be “Who is minding the store?” more than whether AIG should have given these bonuses in the first place. The company showed lousy PR sense and a tone deafness with regard to how this action would appear to taxpayers. But they are no more or less guilty than the rest of the bankers who took us down this path to economic meltdown. And besides, the $165 million in bonuses represents about .001 percent of the bail out money received by AIG so far.

And what about the president’s analysis that what happened was the result of “recklessness and greed?” Is the government now to dictate what is “acceptable risk” and what is “reckless?” Is the desire to make a lot of money now to be criminalized? And by deflecting attention away from his administration’s failings by focusing on the AIG bonuses, is the Obama administration starting a pogrom against capitalists to keep public anger focused on “big business” and “the rich” and not on the lack of a plan to deal with the financial problems that worsen by the week?

The Washington Post thinks this will cost Obama political capital. I’m not so sure. I think this entire issue has been a godsend for Obama in that it redirects the focus from his administration’s incompetence in dealing with this crisis to something the average voter can understand - rich people getting richer at taxpayer expense. With Republicans jumping on the AIG bashing bandwagon, the issue becomes a bi-partisan free for all that makes people forget that Obama has not named any top Treasury officials for his administration yet, that he has not come up with a plan to stabilize the banks (despite promising 6 weeks ago that a plan was already developed), that his Treasury Secretary is a bust, that his economic team is not on the same page when it comes to analyzing the strength of the economy, and that his press secretary continues to amaze all of us with his utter lack of candor and confused - even ignorant - explanations for Obama’s non-actions on the economy.

Yes, it’s a shame we’ve abandoned using the stocks to publicly humiliate and chastize violators of the moral order. But judging by how some Congressmen and Administration officials have been demogouging the AIG bonus issue, ’tis a pity we’ve also forgotten about the grand old American tradition of tar and feathering.

3/14/2009

A LETTER TO THE TIMES ON BOB HERBERT’S COLUMN PUSHING A THIRD AIRPORT FOR CHICAGOLAND

Filed under: Media, Politics — Rick Moran @ 11:27 am

Since there isn’t a ghost of a chance that the Times would ever publish a letter in its entirety written by me, I thought I would use my position as associate editor of American Thinker to respond to Bob Herbert’s laughably ignorant call for another airport in the Chicago area to be located south of the city.

To briefly sum up Mr. Herbert’s column, he believes that the jobs that would be created at the proposed airport near Peotone, Illinois would be just the ticket to get the economy moving on the terminally economically ill south side of Chicago. His fantasy airport would include minimal taxpayer financing, little chance for corrupt contract letting, little chance for political interference, and is just the thing to relieve traffic congestion at O’Hare.

My response:

To the Editor:

I want to congratulate Bob Herbert on his new job as Chief Shill and Water Carrier for Representative Jesse Jackson whose proposal to build an airport south of the city near Peotone, IL was highlighted in Mr. Herbert’s column of March 13 (”Flying Blind in Chicago). I sincerely hope Mr. Herbert will have time to keep writing columns for your newspaper as he has given me endless hours of amusement with his deadpan comedic take on many issues and personalities. Rep. Jackson would very much like to be a senator and to have the august Mr. Herbert promoting the project he hopes to use to ride to Washington will no doubt assist him greatly when it comes time to campaign for the slot being vacated by Roland Burris in 2010 - and perhaps sooner if Mr. Burris can’t get his story straight about his contacts with our late lamented governor Rod Blagojevich.

As for Mr. Herbert’s promoting the Peotone airport, I found several of his observations regarding the efficacy of such a project curious, if not shockingly ignorant. I realize that Mr. Herbert, living as he does in the New York City area, no doubt sees us here in far off Chicagoland as some exotic form of animal life. I can assure Mr. Herbert that such is not the case, that we all get up in the morning and put our pants on one leg at a time just as he does in New York — that is, if they’re still wearing pants there. We may be a little behind fashion wise out in the sticks so I wouldn’t want to jump to any conclusions.

But Mr. Herbert made some claims about the proposed Peotone airport that I would like to address, namely:

It has long been known that a third airport is needed in the Chicago metropolitan area…

Mr. Herbert is correct. It has long been known by those in favor of buying up a stupendous amount of the richest, most fertile farmland in the world - 24,000 acres which is more than 3 times the size of O’Hare - for an airport that the FAA claims is not needed. It is also a well known fact that a third airport is needed if Jesse Jackson, Jr. is going to be elected Senator from Illinois. And it is well known among certain well connected Illinois businesses and politicians that we need another airport for continued graft and corruption.

It may shock Mr. Herbert and readers in New York, but Illinois does not feature the cleanest politics in its state and local government. Surprising as it may be, we have had some minor problems from time to time with the honesty and integrity of our politicians. Scientists studying this problem point to many of our pols secreting an adhesive substance on their fingers that money can’t help but stick to - especially when that money belongs to the taxpayer. It is not a terminal illness but debilitating nonetheless as it gets in the way of good, clean government.

I’m sure Mr. Herbert was unaware of these facts when he wrote this:

The airport would be financed and built by two firms with vast airport experience: LCOR, which owns and operates International Terminal 4 at Kennedy Airport in New York, and SNC-Lavalin, which has financed and operates airports in Europe, Canada, South America and elsewhere.

Um…yes. But financing the actual construction of the airport is a small part of the cost involved. Current plans call for massive amounts of road building, infrastructure improvements, not to mention some kind of mass transit plan that would have to be implemented to get people from the city out to Peotone 40 miles away. 

Illinois pols are licking their chops at the prospect of so much loose cash to be spread around.

Then there’s this bit of nonsense:

There are many advantages to this project, in addition to the private funding. The airport would be specifically designed to serve low-cost carriers that cannot afford to build and operate their own terminals. They would arrive and depart at “common-use” gates that are far more economical.

Another feature of the airport design is that it is “market driven,” meaning that it would be relatively small when it opened and could easily be expanded as demand increased.

Those “low cost carriers” are already using other airports in the region. And the idiocy of building a small airport 40 miles from downtown Chicago that could “easily be expanded” begs the question; why build infrastructure and roads for a major airport and then open a facility designed not to relieve O’Hare congestion but simply steal revenue and traffic from other small towns like Rockford, Champaign, or even Gary, Indiana which has just received FAA permission to build another runway?

The FAA is keen on expanding the airports in Milwaukee and Gary, rightly believing that this is the regional answer to O’Hare’s problems. The airlines are against Peotone not because, as Herbert believes they “are not interested in seeing low-cost competition flying in and out of a spanking new airport, especially one with enormous growth potential…” but because they have crunched the numbers and know that future traffic will be down and there is no need to have an airport with “enormous growth potential.” It is an utter fantasy to believe that Peotone would ever grow large enough to justify major carriers moving there.

Finally, Herbert is being too kind to some politicians when he says, “Simply stated, the politicians can’t get their act together.”

Is he serious? Mayor Daley has his act together just fine and will oppose a third airport in Peotone to his last breath. It’s no act, either. Daley and Jackson hate each other with a passion and Hizzoner will not only do everything in his considerable power to deny him the Democratic nomination for Senator but will fight any loss in revenue from O’Hare. Currently, there is an $8 passenger fee that streams into Daley’s hands for everyone flying in and out of O’Hare. There are also extraordinarily lucrative concessions at the airport - food, shops, parking, limos, taxis, buses, and the motherlode that comes in from towing cars from in front of the terminal left by people who didn’t believe the signs and helped their grandma with her bags anyway. These concessions represent not only cash, but marvelous opportunities to reward cronies - cronies like Barack Obama’s friend Tony Rezko who had a minority front for him so he could open restaurants in the terminals.

And Daley, who is expanding O’Hare to the tune of $15 billion and who is rubbing his hands together in anticipation of getting billions in stim money to help him finance it, will make it a cold day in hell before any other wasteful airport project gets in the way of funding his own albatross of an airport project.

Jesse Jackson, Jr. knows all of this - knows that he can claim that Peotone will set new standards for government cleanliness and incorruptible contracting all he wants but in the end, the state will be stuck with a white elephant of an airport, sprawling in the middle of nowhere and the dirty politicians and their cronies will feast as they always feast on whatever taxpayer money is allocated for this boondoggle.  

If Mr. Herbert wants to kiss up to Rep. Jackson, that’s his business. But perhaps he should learn a little of Illinois politics before he spouts off about things of which he knows little or nothing.

This article originally appears in The American Thinker

3/12/2009

HOW RADICAL IS BARACK OBAMA?

Filed under: Bailout, Financial Crisis, Government, History, Politics — Rick Moran @ 7:41 am

I just finished visiting the blog Crooked Timbers and, as is the case when I read stuff by very smart people, I need an aspirin because my head hurts. I take that as a sign that too much brainy stuff is crammed into my head and I must access the release valve so that some of the older crap can dribble out of my ears to make room for the next clump of logical, coherent, analysis from writers who know a helluva lot more about philosophy and politics than I do.

I lose a lot of long term memory that way, but hopefully, nothing major like the batting averages for the 2005 World Champion White Sox or the names of my children. (Do I have any children? Too late.)

Some very smart writers give me both a headache and make me want to throw up. Juan Cole comes to mind because even though I find his history writing the bomb, he is a nauseating self-referentialist and a terrorist apologist. Come to think of it, just about anyone who writes a blog is guilty of the former so perhaps I am being too hard on Professor Cole as far as his constant self promotion is concerned. His views on Hezbullah and Hamas are another matter and not only have me gagging but also make me want to take a shower after reading him. Same thing happens to me after trying to read Jane Hamsher’s foul mouthed spewings which only goes to show that you can have the mind of slug and still engender massive disgust. Nice trick, that.

There is great virtue in reading stuff by people more intelligent than you are. First of all, generally speaking, you learn something new - even if it’s that the writer is a dork and despite his brilliance, would benefit from the intellectual equivalent of a bracing thwack across the noggin with a two by four. Beyond that, learned writers offer perspectives you will never find by reading most columnists (the sainted Buckley one of the few exceptions), bloggers, or pundits, or by listening to your bartender expound on the mysteries of the universe (despite the fact that most PHD’s in philosophy work as mixologists or cab drivers).

That said, this well toned argument by Henry Farrell at Crooked Timbers on whether or not Barack Obama is turning America into a European style social democracy should be must reading for those who have been complaining about the president’s “socialist” policies.

Farrell quotes Roger Cohen on turning America into France-lite:

To paraphrase Mauriac, I love France, but I don’t want there to be two of them, least of all if one is in the United States. … I think President Obama’s counter-revolution goes in the right direction. … Still, the $3.6 trillion Obama budget made me a little queasy. There is a touch of France in its “étatisme” — the state as all-embracing solution rather than problem — and there’s more than a touch of France in the bash-the-rich righteousness with which the new president cast his plans as “a threat to the status quo in Washington.” … You know possibility when you breathe it. For an immigrant, it lies in the ease of American identity and the boundlessness of American horizons after the narrower confines of European nationhood and the stifling attentions of the European nanny state, which has often made it more attractive not to work than to work. High French unemployment was never much of a mystery. Americans, at least in their imaginations, have always lived at the new frontier; French frontiers have not shifted much in centuries. Churn is the American way. … If America loses sight of these truths, it will cease to be itself.

Cohen sums up the argument nicely, referencing American exceptionalsm without naming it explicitly. Any such mention of exceptionalism would put him in very bad odor with some of his friends on the left who have a jaundiced view of such old fashioned, outmoded, jingoistic nonsense.

Farrell also quotes from this Clive Crook piece at National Journal where the author speaks the forbidden words and points out that if we were to adopt some French social policies (health insurance, labor protections, etc.) that we would not become some kind of French-American hybrid while maintaining our “exceptional” character but rather something totally different:

I was hoping that Brooks would press Shields to say what exactly it is about France he objects to, what makes him recoil at the parallel. Where has France gone too far, in the view of an American liberal? … Presumably, liberals approve of the universal health care, the generous and extensive welfare state, the comprehensive worker protections, the stricter regulation, the vastly more-generous subsidies for higher education, the stronger unions, the higher taxes, and especially the higher taxes on the rich. … Perhaps some liberals privately long to make the United States over in the image of France, but the great majority, I imagine, are more interested in taking the things they regard as best in the European economic model—all the things I just listed—and combining those “socially enlightened” policies with the traditional economic virtues of the United States. Take French social policies and welfare-state institutions and add them to the American work ethic, spirit of self-reliance, and appetite for change. Et voila, the best of both worlds. Color me skeptical. Culture shapes institutions and vice versa. Culture—that bundle of traits of self-reliance, self-determination, innovation, and striving for success—underpins the American exception. … In ordinary times, this culture makes it hard for a government to push the United States in a European direction … But now, maybe, the time is ripe. This unusually severe economic crisis has called American capitalism into question, highlighting its weaknesses and making it easier to forget its strengths. Liberalism has a rare opportunity. … But the interaction between culture and institutions works both ways. Change the system and, with time, you will change the culture.

Farrell’s take deals with the shocks to the political economies of Europe in the 90’s when the “Anglo-Saxon” model of capitalism seemed to be the road to take in a globalized economy:

France and other countries faced a profound crisis – a crisis which in some ways was even more profound than that facing the US today. They have faced continuing pressures to ‘reform’ institutions in a more market-liberal direction over the succeeding two decades. And they have indeed changed in some very important ways. But France did not converge onto the US model despite these pressures. If it had, presumably Crook’s and Cohen’s criticisms would be rather different than the ones that they are making Instead, it has reformed along a divergent trajectory to the US, with continued heavy state involvement in the economy but of a different variety than previously.

This reinforces a near-universal finding of the relevant literature in political economy as I read it. While there is some diffusion of policy lessons across states, it tends to have limited consequences. Different countries respond to common shocks in very different ways, because of their existing institutional structures. National economic trajectories are quite robust. Even in major crises, advanced capitalist countries tend to tinker around the edges of their institutional systems rather than opt for wholesale reform, let alone converging on a perceived ‘better national model’ elsewhere.

And this is what is happening in the US. The Obama proposals are not particularly radical departures from existing practice in the US. They are certainly nothing like traditional European social democracy. Even David Brooks effectively acknowledges this, when he says that they are potentially problematic in combination rather than individually. They aren’t going to set the US on a different national trajectory, let alone make it ‘French’ or ‘European.’ Some of us might like to see this happen, but it isn’t going to, even given the ideological trauma that the US is undergoing. And arguing that American individualism is likely to wilt if exposed to nasty foreign influences smacks more of a kind of capitalist-road José Bové-ism than any serious kind of intellectual analysis.

Reformer, not radical? Farrell seems to be saying that because our “Americanism” is so ingrained, that Obama can slap all the social democratic nonsense he wishes over the exceptionalism template and we will remain virtually unchanged in a cultural sense. I agree. A little more “progressive” in our tax and spending policies perhaps. But it will take a lot more than universal health insurance or card check legislation to destroy what has taken 400 years to build. The problem is, it is not Obama’s policies per se that are necessarily “radical” but rather the ways and means he will achieve them.

But I think Farrell is missing one part of the argument - the practical political effect of Obama’s transformative agenda. This is where the real “change” will occur - a change that will fundamentally alter the relationship between the governed and the governors. For this, we must look to the last American president who attempted transformation - Ronald Reagan.

At bottom, Reagan’s revolution was also firmly grounded in a non-radical departure from existing practice. Reagan did not repeal the Great Society or the New Deal. Social spending skyrocketed under his leadership, anywhere from 3-5% above inflation. Part of this was the fact that he was dealing with a Democratic majority in the House (and, for the last two years, the Senate). The traditional guarantors of aid to the poor made sure there was plenty of funding available to take care of their dependent constituency. Reagan managed to cut the rate of growth as a percentage of GDP in social spending, nothing more - a not inconsequential achievement given the spending trajectory we had been on in the 1970’s.

But even beyond that, Reagan’s “revolution” altered the national conversation on entitlements, bringing some much needed realism and perspective to the debate. Whether this caused a backlash or was itself a product of middle class resentment I will let the historians duke it out to discover the truth of the matter. I don’t see President Obama trying to bring us back to the days when the only question about entitlements was “How much more do we spend?” That part of the Reagan legacy seems secure and may be a starting point to finally come to grips with the frightening prospect of stupdendous social security and medicare outlays 20 years down the road that could literally bankrupt us (if Obama doesn’t beat the clock and do it sooner).

Further, Obama is not going to “undo” the Reagan tax revolution, not when 48 million Americans are paying no taxes at all and the marginal rates he proposes will still fall far short of the rates in place when Reagan took office. Again, Reagan’s tax policies were not really radical in retrospect (Bush’s tax cuts fit that bill nicely) but the changed perspective on taxation - influenced by the California tax revolt that was occurring at the same time - may have been radical in the sense that it reversed 50 years of thinking about taxation. Seeing taxes as personal property and that the government that confiscates the least, governs the best may have to undergo some slight adjustments given our current deficits but the overarching belief that low taxes are a beneficial model for our government will outlast Obama.

So the question of how radical Obama’s policies might be must be seen in the context of politics and history. While grounded, as Farrell rightly points out, in practices and theories of the past, the “remaking” of America that I and others see in Obama’s policies have more to do with a psychological barrier being broken with regards to government intervention in the economy and the resulting alteration of the national conversation about the efficacy of statist solutions to a myriad of social problems. Not France and yet, not America as we have known it either. I realize that “change” is what people voted for but did they vote for the kind of Middle Class dependency that some of Obama’s policies would seem to promote? I struggled with this question in a post I wrote last month, “If Government Makes Life Easier, Does That Make it Better?”

The transformation of American society from one that values liberty to one that embraces dependency has taken longer than any other western nation. This has largely been due to American conservatisms steadfast refusal to abandon what Kirk calls the “voluntary community” in favor of the stifling hand of collectivism. Where once only the poor felt the deadening hand of statism which created a permanent underclass, destroyed the family, and smothered ambition, now the middle class is in line to be granted similar attention…

Liberals do not like to discuss the loss of freedom their collectivist ideas entail. But we are clearly in an era where choices are to be limited for the middle class in order to make life less of a burden . And any society that limits choice, limits freedom.

But isn’t this what the people want, what they are demanding? How can you live in a democracy and tell people that government acting to make your life easier is wrong and that the alternative - struggling to make the right choices for yourself and your family and where not choosing wisely might cost you - is the preferred, indeed the “American” way of self sufficiency and taking responsibility for your own life?

There is nothing noble in suffering but I would posit the notion that independence is, in and of itself, enobling and in any society that values freedom, the slide into dependency cannot be allowed without a recognition of what we lose as well as what is gained. There are 400 years of struggle behind us to create a society where the individual took responsibility for his own well being and that of his family, his fortunes rising or falling based on his native abilities and talents. The reward was “an earned life” of personal satisfaction and a feeling of self worth and accomplishment that you simply cannot experience if you depend on government for as much as we do today. Or as much as we will in the near future if more of our freedoms are given up in the name of personal security and comfort.

Farrell does not believe that kind of “rugged individualism” is at stake in an Obama presidency. I believe it is. I believe the real transformation that Obama’s ideas and policies represent might not make us into a France (which isn’t really the point) but will result in a different kind of America - one that is inconsistent with our founding and an anathema to conservative (traditional) principles upon which we have built a society unique among men. And what I find despicable is the president and his cohorts using the “opportunity” of an economic crisis to bring about these transformative policies by subterfuge. They wouldn’t fly otherwise and they know it.

Give us a stand up fight without resorting to political tricks of fear mongering and partisan bitchery and I would guarantee the bulk of Americans would be standing with us and not the president.

3/11/2009

THE CARTERIZATION OF OBAMA

Filed under: Bailout, Financial Crisis, Government, History, Politics — Rick Moran @ 6:57 am

They were just whispers a couple of weeks ago - a hint there, a question here. But if you believe Howard Fineman, the inside the beltway crowd has taken the mettle of our new president and discovered that despite all the hype, Obama may not be all he’s cracked up to be.

I hasten to add that this has not and probably will not affect his enormous personal popularlity anytime soon. The mass of citizens have more common sense than the elites and a lot more patience as well. But to people who follow politics as a religion and look for signs and portents as a soothsayer would look for harbingers in the entrails of a frog, there are a few things to be worried about when looking at our president’s performance so far.

What has he done in 50 days? He has proposed much and accomplished some. The primal push of his presidency - the stimulus bill - is getting it from both sides with conservatives deriding it as pork while liberals already saying it wasn’t big enough. This is something we better get used to from the left because they area establishing the parameters of debate when the ultimate let down occurs and it is shown that Obama’s massive spending is not working. The battle cry will be “not enough!” rather than “let’s try something else!”

But why not enough? Rahm Emanuel, Hillary Clinton, and even President Obama himself have all used the exact same phrase to describe their approach to governance in these times of economic hardship; “In crisis, there is opportunity.” I am convinced this phrase will come back to haunt them because if the first stimulus bill wasn’t enough to get the economy moving, it was because it was loaded up with “opportunity” spending that had nothing to do with economic recovery and everything to do with remaking America. In other words, a great deal of the spending in the stimulus package was discretionary and not crisis-related.

And now Obama wants to come back for more? For hundreds of billions that will be for “real” stimulus?” He’s got to be kidding. What this shows is a frightening prospect; Obama cares less about economic recovery than he does about changing America to reflect his left wing vision.

This is also born out in how he has established his priorities. At Obama’s first press conference, he refused to discuss what his administration was going to do about the banking crisis because he “didn’t want to steal any thunder” from his Treasury Secretary who was going to announce the plan the next day.

This was a lie. There was no “thunder” to steal because his Treasury Secretary Timothy Geithner had no plan to announce. Once that became apparent, the markets began a serious slide to oblivion. And here we are more than 5 weeks later and Geithner is still mum about his plans to save the banks. This is causing not only a lack of confidence but has opened the Administration up to questions about their basic competence. It has made Geithner a butt of jokes and has even led to calls in some quarters for his resignation.

Did Obama think we wouldn’t notice? Did he believe that people would simply forget his promise to have a plan? And here is where wildly misplaced priorities come into play. The fact is, the key to this whole economic mess is getting the banks to lend money again. Obama could pass 10 stimulus bills and it wouldn’t make a difference because as long as credit is frozen, our economy will continue its free fall.

This begs the obvious question; why did the Obama Administration choose to try and pass the stimulus bill before solving the banking crisis? Why didn’t they concentrate on that fundamental problem rather than ram an $800 billion spending free for all down our throats when even its supporters say didn’t contain enough money to immediately stimulate the economy? Shouldn’t they have been working from the first hours after the election on trying to solve the problem that, more than any other factor, could lead to a catastrophe for our nation and the world?

Or was it more important to take advantage of the “opportunity” found in the crisis to fund liberal programs that the president feels will remake America?

Obama claims he can work on more than one problem at a time:

“I know there are some who believe we can only handle one challenge at a time,” Obama stated today. “They forget that Lincoln helped lay down the transcontinental railroad, passed the Homestead Act, and created the National Academy of Sciences in the midst of Civil War. Likewise, President Roosevelt didn’t have the luxury of choosing between ending a Depression and fighting a war. President Kennedy didn’t have the luxury of choosing between civil rights and sending us to the moon. And we don’t have the luxury of choosing between getting our economy moving now and rebuilding it over the long term.”

As Jules Crittenden points out, Roosevelt needed the war to get out of the depression. And Kennedy? I know Obama went to Columbia and all but Holy Smokes! Kennedy hardly “chose” civil rights - it was forced on him by the courage of the Freedom Riders and the demonstrations in Selma and elsewhere. Kennedy was furious with King for forcing his hand and sicced Bobby on him to try and get him to pull back. Also, as Jules points out, civil rights and the moon program together did not cost the government even a tenth of a stimulus bill in today’s dollars.

That’s beside the point, however. Yes, presidents can and should deal with more than one problem at a time. But Barack Obama is starting to look suspiciously like Jimmy Carter who tried to do so much those first 3 months that he ended up accomplishing very little. This description of Obama by Howard Fineman is eerily Carteresque:

Obama may be mistaking motion for progress, calling signals for a game plan. A busy, industrious overachiever, he likes to check off boxes on a long to-do list. A genial, amenable guy, he likes to appeal to every constituency, or at least not write off any. A beau ideal of Harvard Law, he can’t wait to tackle extra-credit answers on the exam.

But there is only one question on this great test of American fate: can he lead us away from plunging into another Depression?

Carter was so desperate to be liked and yet, ended up being universally despised because he ineptly used the powers at his command. What do you call a president who puts economic recovery as a secondary goal in a deep recession while being unable to come to grips with the fundamental reasons for the downturn?

Inept? Incompetent? Misguided? In over his head?

Fineman:

If the establishment still has power, it is a three-sided force, churning from inside the Beltway, from Manhattan-based media and from what remains of corporate America. Much of what they are saying is contradictory, but all of it is focused on the president:

  • The $787 billion stimulus, gargantuan as it was, was in fact too small and not aimed clearly enough at only immediate job-creation.
  • The $275 billion home-mortgage-refinancing plan, assembled by Treasury Secretary Tim Geithner, is too complex and indirect.
  • The president gave up the moral high ground on spending not so much with the “stim” but with the $400 billion supplemental spending bill, larded as it was with 9,000 earmarks.
  • The administration is throwing good money after bad in at least two cases-the sinkhole that is Citigroup (there are many healthy banks) and General Motors (they deserve what they get).
  • The failure to call for genuine sacrifice on the part of all Americans, despite the rhetorical claim that everyone would have to “give up” something.
  • A willingness to give too much leeway to Congress to handle crucial details, from the stim to the vague promise to “reform” medical care without stating what costs could be cut.
  • A 2010 budget that tries to do far too much, with way too rosy predictions on future revenues and growth of the economy. This led those who fear we are about to go over Niagara Falls to deride Obama as a paddler who’d rather redesign the canoe.
  • A treasury secretary who has been ridiculed on “Saturday Night Live” and compared to Doogie Howser, Barney Fife and Macaulay Culkin in “Home Alone”-and those are the nice ones.
  • A seeming paralysis in the face of the banking crisis: unwilling to nationalize banks, yet unable to figure out how to handle toxic assets in another way-by, say, setting up a “bad bank” catch basin.

There’s more at the link but you get the idea. We are, for all intents and purposes, adrift and at sea with the president’s answer to every problem to spend more, borrow more, and use the crisis as an opportunity to tear at the fabric of our founding. The Administration is frozen about what to do with banks that are teetering on the edge of insolvency (along with the entire banking system) and appear not to be focusing on the chaos their incomprehensible delay in proposing solutions to solve the problem is causing. Instead, we get nonsense about comparing the stock market to tracking polls rather than a vote of “no confidence” in Obama’s plans - or lack thereof.

Are these just the growing pains that all presidents go through when they first take office? I’m sure some of this can be ascribed to that notion. It is, after all, still very early in Obama’s term. And I would hardly write off one so gifted so easily.

But Jimmy Carter was also seen as brilliant, a super technocrat who could answer the question of the day, “Is the presidency too big for one man?” It took Reagan - chuckling and snoozing his way through history - to definitively answer that question; it depends on the man.

To those who read the signs of this administration, the question is not if the presidency is too big for one man but whether the man currently occupying the office is up to the challenges that face us.

The jury is still out on whether or not he is.

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