Posts tagged with: congress

Blog author: abradley
posted by on Wednesday, October 27, 2010

Published today in Acton News & Commentary. Sign up for the free weekly email newsletter from the Acton Institute here.

Barack von Bismarck

By Anthony Bradley

The November congressional elections are not so much a referendum on the Obama administration as a check on whether President Barack Obama’s implementation of a Bismarckian vision of government will continue.

Otto von Bismarck, the Prussian prime minister/German chancellor from 1862 to 1890, is the father of the welfare state. He advanced the vision that government should serve as a social services institution by taking earned wealth from the rich and from businesses to deliver services to those who are not as advantaged. Bismarck’s Kulturkampf campaign intended both to keep radical socialists at bay and undermine the church’s role in meeting the needs of local citizens by positioning government to be the primary source of social services. He initiated the ideal of an ever-expanding, beneficent government, which was subsequently imported to the United States in Franklin Roosevelt’s New Deal, expanded further with Lyndon Johnson’s War on Poverty, and currently drives the policies of the Obama administration. Barack Obama is not a 19th-century socialist, but his agenda is unquestionably Bismarckian.

The Iron Chancellor

In 1891, William Dawson, in Bismarck and State Socialism, explained that Bismarck believed it was the duty of the state to promote the welfare of all its members. On November 22, 1888, in response to Germany’s 1873 economic crisis, Bismarck proclaimed, “I regard it as the duty of the State to endeavor to ameliorate existing economic evils.” In Bismarck-like fashion, commenting on America’s economic crisis, President Obama declared in January 2009 that,  “It is true that we cannot depend on government alone to create jobs or long-term growth, but at this particular moment, only government can provide the short-term boost necessary to lift us from a recession this deep and severe. Only government can break the cycle that are crippling our economy—where a lack of spending leads to lost jobs which leads to even less spending; where inability to lend and borrow stops growth and leads to even less credit.” In a Bismarckian world, “only” government can set the national economy right.

Regarding universal health insurance, on March 15th, 1884, Bismarck asked, “Is it the duty of the State, or is it not, to provide for its helpless citizens?” He answered, “I maintain that it is its duty.” It is the duty of the state to “the seek the cheapest form of insurance, and, not aiming at profit for itself, must keep primarily in view the benefit for the poor and needy.” Similarly, under the federal healthcare reform law, Congress forbids health insurance companies from raising insurance premiums until insurers submit to Obamacare officials “a justification for an unreasonable premium increase prior to the implementation of the increase.” In effect, government determines health insurance premiums.

On unemployment, Bismarck believed that government is ultimately responsible for finding jobs for those unemployed through no fault of their own, those lacking opportunity to work and thus prohibited from properly sustaining themselves. On March 15, 1884 Bismarck exclaimed, “If an establishment employing twenty thousand or more workpeople were to be ruined . . . we could not allow these men to hunger”—even if it means creating government jobs for national infrastructure improvements. “In such cases we build railways,” says Bismarck. “We carry out improvements which otherwise would be left to private initiative.” Likewise, in July, President Obama proclaimed, “I believe it’s critical we extend unemployment insurance for several more months, so that Americans who’ve been laid off through no fault of their own get the support they need to provide for their families and can maintain their health insurance until they’re rehired.” Then, in September, President Obama announced a six-year, $50 billion infrastructure proposal “to rebuild 150,000 miles of our roads,” “maintain 4,000 miles of our railways,” and “restore 150 miles of runways.” To keep America working, Obama is channeling Bismarck’s vision of government as creator of jobs.

By the 1890s, for several reasons, Germany was forced to abandon many of Bismarck’s specific reforms. However, Bismarck’s method of using of government as the ultimate provider of social services paid for by the earned wealth of others is the modus operandi of the Obama administration. The outcome of contests for congressional seats will determine whether the nation continues down the path chosen by Barack Obama, but blazed long ago by the visionary of the omnicompetent state, Otto von Bismarck.

The Third Lausanne Congress on World Evangelization, also known as Cape Town 2010, was reportedly the target of an cyber attack. The official statement from the congress says, “The sophisticated computer network developed for sharing Congress content with the world was compromised for the first two days of the Congress.”

“We have tracked malicious attacks by millions of external hits coming from several locations,” said Joseph Vijayam, IT Chair of The Lausanne Movement, sponsor of the gathering. “Added to this was a virus brought into the centre on a mobile phone.”

Officials are holding off making public claims about the source of the attack. “We have a pretty strong indication, but one can never be absolutely certain, so we prefer not to share our suspicions,” said Vijayam.

But a prominent evangelical blogger, Andrew Jones, who is attending the conference speculates regarding the attack: “…now we have heard that 95% of these internet hits came from the country of China, and the 66 locations were also situated in China, and that account of a Chinese fellow taking photos of Congress participants before running away, and this has caused us to consider China at least as a potentially suspicious candidate.”

This is on the heels of roughly 200 Chinese Protestants having been denied departure from China to attend the congress. More on that story below the break.
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Political commentators have spilled a septic field of ink explaining what drives the Tea Party movement; and, sure, the movement is complex and varied, resisting any single attempt to blah blah blah. But the core of it boils down to the Saturday Night Live skit below. The analogy runs like this: The Steve Martin character and his wife represent the ruling political class in Washington; and the Tea Party is the book author.

I realize it’s not a perfect analogy. If it were a perfect analogy, the book author wouldn’t be nearly as detached, because the couple has been spending the author’s money using a credit card he had idiotically loaned them a few years before. Oh, and the husband would be accusing the book author of racism, or of being a flyover country yahoo without the sophistication to understand Keynesian economics or something.

[Hat Tip to Luke at Cornerstone University for the SNL skit.]

In my commentary this week, “America’s Uncontrolled Debt and Spending is the Real ‘Waterloo,’” I offer the well known point that debt and spending threatens our liberty and prosperity. It is becoming very evident that it will be up to citizens to demand accountability from their lawmakers, as I mentioned. What has been tried before has not worked.

In terms of liberty, Thomas Jefferson declared, “The natural progress of things is for liberty to yield and government to gain ground.” What the Founders articulated was that democracy and liberty is not the natural order of things, and that consolidated power moves toward tyranny. The U.S. power structure has borrowed from the income of future generations in an irresponsible and immoral manner, and citizens are culpable as well. What does that mean? I thought U.S. Senator Judd Gregg (R-N.H.) recently articulated the consequences of the crisis very passionately on CNN with journalist John King.

Blog author: mvandermaas
posted by on Friday, February 13, 2009

Washington is all atwitter about the “Stimulus,” which is currently being pushed through Congress (without being read by most members). Acton’s own Michelle Muccio has come up with a plan of her own, and did a bit of independent research to see if her proposal would find any support:

What is the root cause of the sub-prime crisis shaking the global economy? We need to know so we don’t allow it to screw up our economy even worse.

Many point to dishonesty and poor judgment on Wall Street. There was plenty of that leading up to the near-trillion dollar bailout, and even now the stock market is busily disciplining stupid, dishonest companies.

Others point to the many people who falsified loan applications to get mortgages beyond their means. That too played a role.

But dishonesty and poor judgment are as old as Adam and Eve. Something more was at work in the present crisis, a crisis of unprecedented scope. Why didn’t profit-minded loan companies run thorough credit checks? Why did they keep pumping out low interest loans to high risk borrowers, ignoring the risks?

It’s as if somebody spiked the financial system’s punch bowl with stupid juice, driving normally prudent financiers to dash, en masse, over the cliff.

It seems that way because it is that way. The brewers of the stupid juice were largely (if not exclusively) politicians in Washington who sought to redistribute wealth from the rich and middle class to poor people with bad credit. These politicians fostered various laws and institutions that directed, cajoled and legally bullied mortgage companies to extend big loans to people with little credit.

A case in point is a group called ACORN—Association of Community Organizations for Reform Now. Stanley Kurtz explains in an Oct. 7 essay at National Review Online:

“You’ve got only a couple thousand bucks in the bank. Your job pays you dog-food wages. Your credit history has been bent, stapled, and mutilated. You declared bankruptcy in 1989. Don’t despair: You can still buy a house.” So began an April 1995 article in the Chicago Sun-Times that went on to direct prospective home-buyers fitting this profile to a group of far-left “community organizers” called ACORN, for assistance. In retrospect, of course, encouraging customers like this to buy homes seems little short of madness.

… At the time, however, that 1995 Chicago newspaper article represented something of a triumph for Barack Obama. That same year, as a director at Chicago’s Woods Fund, Obama was successfully pushing for a major expansion of assistance to ACORN, and sending still more money ACORN’s way from his post as board chair of the Chicago Annenberg Challenge. Through both funding and personal-leadership training, Obama supported ACORN. And ACORN, far more than we’ve recognized up to now, had a major role in precipitating the subprime crisis.

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First Maxine Waters suggested that she might just want to nationalize the US oil industry; now Maurice Hinchey of New York is jumping on that bandwagon. And why wouldn’t they? It’s all the rage these days. Just look at Venezuela, which is rapidly emerging as a South American hellhole paradise after Hugo Chavez started nationalizing everything. Why should we be left behind?

It turns out that there are a number of very good reasons to avoid that particular bandwagon. Dr. Jay Richards discussed them last night on KKLA in Los Angeles on the Frank Pastore Show. Listen in and decide for yourself whether the US should nationalize the oil industry.

Why yes, yes she did:

Link: sevenload.com

Via Hot Air.

The Wall Street Journal jumps on my bandwagon:

We’re all for putting more money in the hands of the poor and moderate earners, especially via stronger economic growth that will give them better paying jobs. But the $250 or $500 one-time rebate check they may now receive has to come from somewhere. The feds will pay for it either by taxing or borrowing from someone else, and those people will have that much less to spend or invest themselves. We are thus supposed to believe it is “stimulating” to take money from one pocket and hand it to another.

To put it another way, when the government calculates gross domestic product, it expressly omits transfer payments. It does so because GDP is the total of goods and services produced in the economy, and transfer payments produce no goods and services. The poor will spend those payments on something, but the amount they thus “inject” into the economy will be offset by whatever the government has to tax or borrow to fund the transfers. No wonder stocks sold off yesterday after Mr. Bernanke endorsed this 1970s’ economic show.

A fiscal stimulus that really stimulates would change incentives, and do so permanently so workers and investors can know what to expect and take risks accordingly.

Blog author: mvandermaas
posted by on Thursday, January 17, 2008
Think, Congress! THINK!

Congressional logic:

As the increasingly troubled economy emerges as the trump issue of the 2008 political season, senior congressional Republicans said Wednesday they would put aside demands to make President Bush’s tax cuts permanent if that was what it took to get quick action on a stimulus package…

…The White House has not addressed the issue in detail, but Bush, who has been traveling in the Middle East, is scheduled to hold a conference call today with congressional leaders. To avoid a veto, they hope to get his nod in advance on the outlines of a plan that would probably include a $500 rebate check for taxpayers, extended unemployment benefits for the jobless, and incentives for businesses to expand and create jobs.

Let’s think about this for a second:

  • There’s at least a tacit acknowledgment here that it’s better for the nation for this money to be in the hands of consumers instead of the government, because they’ll go out and spend it in order to “stimulate” the somewhat sluggish economy.
  • In order to get more money into the hands of consumers in the short term, Congress is probably going to allow tax rates to rise pretty significantly over the longer term, thus removing (presumably) a lot more money from the economy than the $150 billion that this neat little package is estimated to cost.

I know it’s difficult for Congress to think outside of the box, but let’s try for just a minute: What if… instead of handing out a $500 bribe to the voters, you actually made the US a more attractive place to do business? Perhaps by actually reducing the size, scope and cost of government, thereby leaving more of that cash in the private sector where it belongs – where wealth is created instead of just siphoned off of productive people? Heck, you might even obviate the need for those extended unemployment benefits and business incentives, because the drag on the economy from the cost of government would be significantly smaller…

But it is an election year you know. So what are you going to do with your $500?