Last night President Obama delivered his constitutionally-mandated State of the Union address. It was, of course, little more than the official start of his re-election campaign. Still, the 65 minutes he spent in the House well delivered more than a few interesting tidbits. I thought we could have some fun digging into the speech‘s rhetoric and laying bare the facts.
Obama: “We have subsidized oil companies for a century. That’s long enough. It’s time to end the taxpayer giveaways to an industry that’s rarely been more profitable, and double-down on a clean energy industry that’s never been more promising.”
This is the third SOTU address in which he floated the idea of ending oil subsidies. It’s also going to be the third time this falls on deaf ears. He couldn’t get this passed in 2009, when his party controlled the House and had a filibuster-proof majority in the Senate – and that was with a specific legislation calling for $36.5 billion in energy taxes over ten years. The administration never followed up a similar proposal in last year’s SOTU with draft legislation. It seems equally doubtful that a candidate who received nearly $3 million in campaign donations from the oil industry (thus far) is in any rush to see this put into law. Further, we’ve seen the results of the investment in “green energy” companies like Solyndra. In blackjack, that’s the equivalent of “doubling-down” on a 9 when the dealer is showing an ace.
Obama: “Our health care law relies on a reformed private market, not a government program.”
Perhaps the President needs to go back and re-read that health care law. First of all, the reform relies primarily on an individual mandate, enforced through the IRS. If that enforcement doesn’t qualify as the biggest government program in history, then obviously I’m not as good a student of our nation’s history as I thought. And there are other, already existing programs that will be greatly expanded should the Supreme Court not throw the whole thing out this summer. For instance, Medicaid grows to cover anyone up to 138% of the official poverty line, which the CBO scored as requiring a funding increase of $434 billion per year. In and of itself, that would make Medicaid the single largest line item in the federal budget – and most state budgets, too.
Obama: “Take the money we’re no longer spending at war, use half of it to pay down our debt, and use the rest to do some nation-building right here at home.”
This is a wonderful assertion, except that it ignores the reality of the federal budget. The Iraq campaign was financed entirely on debt. Ending that war doesn’t actually result in any savings, except in the strange and convoluted world of Washington finance. It just means we’re able to borrow less money and keep everything else funded at the same levels. Of course, the President largely ignored the problem of the federal debt, so I suppose he thinks keeping deficits at staggeringly high levels in order to score a few rhetorical points is money well spent.
Obama: “Through the power of our diplomacy a world that was once divided about how to deal with Iran’s nuclear program now stands as one.”
I’m not sure which world he meant by this, but it obviously wasn’t this one. Yes, the European Union seems likely to join the US in applying stringent sanctions. But Russia and China have no intention of doing so, and both countries used their veto power in the UN to prevent that body from enforcing them. Besides, the sanctions will have limited effect on the Iranian economy, since the Iranians switched from accepting dollars and euros to rials or rubles. Just for good measure, Israel seems hell-bent on taking unilateral military action if they deem it necessary. It’s hardly the unified front the President presented.
Obama: “The Taliban’s momentum has been broken, and some troops in Afghanistan have begun to come home.”
Apparently, the President failed to read his latest NIE. In that document, the Taliban is expected to gain strength by using the ongoing talks to re-establish their legitimacy in the Afghani countryside while stalling until we pull out. This assertion is as hollow as LBJ’s that “the Government of South Vietnam has grown steadily stronger.” Of course, we all know well that turned out.
An overarching theme last night was the idea of economic “fairness.” As described by Mr. Obama, fairness is “an economy where everyone gets a fair shot, everyone does their fair share, and everyone plays by the same set of rules.” Yet, at no point did he actually outline how to make that a possibility. He suggested that millionaires aren’t paying their fair share of income taxes – yet according to the IRS the effective rate for those people is 26.5%. Only 10% of people making under $100,000 per year are paying a higher effective rate – and less than 5% of millionaires pay a lower rate. Thanks to that disparity, millionaires accounted for 36.5% of the federal government’s income. Unfair? You bet it is – but I doubt asking the 47% of Americans whose effective tax rate is negative to pony up is what the President had in mind when talking about “fairness.”
Finally, one thing was ominously missing from the speech: any discussion of individual freedom and liberty. The entire speech was a discussion of increasing the role and prominence of the federal government in our lives. “With or without this Congress, I will keep taking actions that help the economy grow,” declared the Mr. Obama. Quite frankly, I can’t think of a scarier statement by any President in our recent history. Putting aside the obvious constitutional questions raised by a President acting unilaterally, consider that some 13 million more Americans are looking for work since he assumed office and real GDP growth (accounting for inflation) is -7.3% over the same period, I don’t want this President touching the economy. Especially when he has demonstrated an incredible desire to amass power in the West Wing and during an election year.
Remember when I was begging and pleading with lawmakers to reject President YOYO’S inane payroll tax cut? My worry is that doing so dramatically underfunds Social Security. Well, guess what. Independent analysis is confirming that those worries are justified. Read more at this Washington Post article. My question is, where was this article two weeks ago? Oh, that’s right. The Post, like the rest of the MSM, remains an Obama sycophant.
Every once in a while, a bolt from the blue comes along and provides you with instant clarity. I just had one.
Yesterday, I noted this quote from the Partisan-in-Chief: “Republican policies are an approach to government that will fundamentally cripple America.” I thought Obama was simply trying to stir up the radical left with that oddball statement. After all, Republicans may be trying to streamline government (and dragging the Democrats along, kicking and screaming) but they’re hardly out to cripple the nation.
And then I realized he made that statement at a LinkedIn open house. And followed that up over the weekend by telling the Congressional Black Caucus to “Shake it off. Stop complaining. Stop grumbling. Stop crying. We are going to press on. We’ve got work to do.”
It seems our post-partisan, post-racial President is ready to not only toss aside post-partisanship in an attempt to hold onto power. He’s now throwing away the idea that we’re one nation, ideally color blind. Yes, he’s out there riling up the black community by (1) scaring them into thinking Whitey Republican is going to take away their jobs (although, with real unemployment in the black community hovering around 37%, there aren’t that many to take and (2) Whitey Republican is going to cripple their America. You know, the one the rest of us refer to as the welfare state but the one the liberals love to think of as the “real” America. The Promised Land in the Genesis song where everything comes easy, you just hold out your hand.”
I said yesterday that this election strikes me as a battle for the soul of the United States of America. After further reflection, I think that may be the greatest bit of understatement in my life. This isn’t a battle. It is an all-out WAR.
President Obama’s “Son of Stimulus” (aka the American Jobs Act) is already dying the slow, tortuous death of a thousand paper cuts. And for good reason: the majority of Americans don’t buy the President’s latest smoke-and-mirrors plan. After all, stimulus was tried in 2009 and failed miserably. We were assured that spending nearly $800 billion in direct stimulus, plus billions more for “cash-for clunkers,” the automotive industry bailouts and banking industry bailouts would curb unemployment to 8% and have us under 7% by this point. More telling than the fact that was a terrible overshoot, is that nobody in the administration is willing to put any kind of number on how many jobs this latest round of stimulus would create. I doubt anyone in the White House actually believes this would really do much for the economy.
Americans intuitively understand that stimulus spending doesn’t really do much, except exacerbate the underlying cause of our economic malaise. Economists will tell you that the reason we’re in such a mess is because consumer demand – which fuels around 70% of total economic activity – is depressed. If only that were true.
The real cause for depressed sales is much more basic: people can no longer afford to buy consumer goods. They still want iPads®, flat-screen TV’s and new cell phones. But when they sit down with their bills each month, they aren’t willing to incur new debt to purchase them. After all, the debt frenzy that drove the last 20 years of economic growth met its inevitable end with the financial collapse of 2008. We’re still busy digging our way out from that mess and until the typical household reduces their debt burden, don’t expect them to begin spending again.
The same goes for government. The massive expansion of federal debt leaves Americans feeling equally queasy – after all, we just learned a valuable lesson about what happens when people and companies are over-leveraged. When public debt exceeds the total value of the economy and projected spending continues to go up, not down… Well, let’s just say we aren’t interested in finding out if an over-leveraged government can suffer the same fate as an over-leveraged household.
One of the more intriguing topics to come up for debate in this election cycle is the issue of “Park51,” more commonly referred to as the “Ground Zero Mosque.” Despite President Obama’s insistence that his presidency would represent an ascension past the culture wars that have defined American politics since the founding of the nation, this has become the flashpoint issue for 2010.
Like most cultural issues, this one pits two core American values in opposition to one another: our first amendment rights to congregate freely and the freedom from having one group impose its values on any other, as described in the ninth amendment.
Under the First Amendment, the members of the Cordoba Initiative certainly have the right to peaceably assemble, to worship their god and to disseminate information about their beliefs. Those are their stated reasons for wanting to build their edifice virtually on top of the Twin Towers site. They say that they want to foster an understanding of Islam as a religion of peace, not terror. In other words, by building on the site they have selected they hope to heal the wounds many feel are directly causal from an intractable religious dogma that preaches the destruction of all things and people not Muslim. In the Cordoba’s view, that opinion of Islam is distorted and incorrect. But in their attempted healing gesture, they are demonstrating an incredible callousness towards the very society they hope to inform.
What they forgot is that for most Americans, our only exposure to Islam is what we’ve seen on TV, and foremost among those images is the image of the Twin Towers collapsing to the ground – and the Muslim world celebrating the wound inflicted upon the “Great Satan.” 9/11 was not an attack by one nation on another – unlike any assault since the Middle Ages; this was purely a religious war being waged by Muslims acting in the name of Allah. Even if the impression upon our nation is incorrect and this is merely one sect of the religion striking out at their perceived enemy, there are better ways to inform the American public than by pouring salt into the wound. Of course, it isn’t the first time the leader of the Cordoba sect has demonstrated an incredible lack of sense when speaking to the his adopted country: this is the same Imam who, in the days immediately after 9/11, essentially blamed the US for the attack. He is also on record attacking Israel and defending Hamas, to the point of helping sponsor the June provocation.
By refusing to reconsider their position, the Cordoba Initiative ignored the nation they are hoping to educate and thereby, gain further assimilation. It shouldn’t be that difficult for them: suppose a group of extremist Lutherans attacked Mecca? And then the Catholic Church built a large cathedral on the site? Would the Islamic world understand the differences between Christianity, radical Lutheranism and Catholicism? Most likely not – and the local bishop would be considered an idiot if he were to expect any local support.
By stepping into the middle of this muddle, the President turned up the heat on the issue. Perhaps he meant to. Perhaps he miscalculated. Either way, the mosque became definitive of a larger issue; namely, how does a subset of American culture successfully integrate into the mainstream? Is it through legal channels or gradual acceptance? It seems the left wing of the American body politic, as it often does, chose the method of legality: of asserting one constitutional right over another. In so doing, both they and the Cordoba’s have turned their mosque into a temple of rights vs. right and given the nation a new wedge issue. By embracing the intransigent side of the debate, the President has assured his party will bear yet another millstone on their way to the November elections.