Posts tagged with: congress

Blog author: kspence
Monday, August 1, 2011

It looks like Congress will vote later today or this evening to raise the debt ceiling and avert a possible default by the United States Treasury. How the debt ceiling compromise will fair when measured against Acton’s Principles for Budget Reform it is too early to know, but one thing is certain: if the deal contains a single budget cut for even the most ineffective of social programs, we’ll hear screams of protest from Jim Wallis and his Circle of Protection.

Already parts of Washington are “livid over the extent of the deal’s domestic spending cuts, as well as the absence of any immediate tax hikes on wealthier Americans.” Coalitions that have a confused idea of the common good won’t like a debt deal that threatens to reflect economic realities and truths about the human person—and this plan doesn’t even have the support of many important conservatives.

As Jim Wallis explained the progressive Christian’s view of the debt negotiations:

Our country is in the midst of a clash between two competing moral visions, between those who believe in the common good, and those who believe individual good is the only good. A war has been declared on the poor…

Wallis reveals here a fundamental misunderstanding of the common good, and thus of politics. To Circle of Protection and its allies, the common good is achieved by higher taxation of the wealthy and redistribution of wealth: as everyone gets his check on the first of the month, justice is served. What redistributionists don’t understand is that simply running all the money through a common mill doesn’t mean you’re serving the common good. A large administrative state is not a sign of flourishing communal society.

An idea of the common good must be grounded in a correct vision of human nature, and the class warfare lens through which Wallis views the world distorts by materialism his perception. What is called the common good is in fact the common advantage, and belief in the common advantage is indeed belief that “individual good is the only good.”

Government for the sake of the common good requires a free citizenry, because without the freedom to make choices of moral consequence, a people cannot do good. Thus, taking the means of private charity and redistributing it for the sake of material equality is not practicing government for the common good.

Blog author: lglinzak
Thursday, July 7, 2011

Political news changes quickly, and now reports are coming out of Washington DC that Senator Dianne Feinstein, who has been leading the way in killing the ethanol subsidy and tariff, has struck a deal with Senators Amy Klobuchar and John Thune, two stalwarts for protecting ethanol. While the rumored deal does not indicate the repeal of the blending mandate it is a step in the right direction.

However, while we wait on Congress and the President for action, the Brazilian ethanol industry is eying the U.S. ethanol market. Repealing the tariff will allow Brazil to expand its ethanol industry. Many questions need to be answered before ethanol is imported into the U.S. from Brazil.

In a previous post I posed concerns about whether ethanol can meet both U.S. and Brazilian demands. Furthermore, what are the environmental consequences of ethanol? Reports are showing deforestation in the rainforest. Finally, what will happen to food prices?

It is unfortunate that there are even more questions that need to be answered.

Like the corn based ethanol in the U.S., Brazil’s sugar based ethanol is a false market created by the government. Brazil doesn’t subsidize ethanol; instead it resorts to high taxes. Brazilian gasoline taxes are at 53 percent while the tax placed on ethanol is much lower making ethanol cheaper than gasoline. The question is how long can an industry last and actually be sustainable when it is propped up by the government and is a false market?

It is also important to note that the Brazilian ethanol industry needs a large sum of new investment, about $80 billion worth in the next ten years, to meet global demand. In an industry that is heavily dependent on the government one must wonder, who will pay for these new investments?

Another potential hazard of relying on ethanol is crop shortages. Such crop shortages may occur for a variety of reasons, one of which is out of our control: the weather. What happens when fuel relies on crops, and there is actually a shortage in the harvest? How much of the crop goes to fuel and how much goes to the food supply? Both are important. Food nourishes, however, fuel gets people to their jobs where they earn a salary which they use to purchase food. Brazil may be forced to answer these questions this year as sugarcane production is currently down 25 percent as compared to last year. The lack of production is due to bad weather and aging plants.

However, because of the lack of production sugar prices are on the rise as they saw a 14 percent surge in June. While some are sounding the alarm, other analysts are remaining calm, such as Eli Mamoun Amrouk of the United Nations’ Food and Agriculture Organization:

El Mamoun Amrouk, sugar analyst at the Rome-based FAO, said: “It’s difficult to predict exactly what’s going to happen to the sugar price because the market’s so volatile and so any new information can have a big effect on price. The speculation is still there, exacerbating the trend and changes in the dollar also play a part.

“But the signs are that production is growing significantly and, especially in India and Thailand, the prospects are very positive, so we should see the price start coming down in the summer,” he said.

Whether sugar prices do come down or not, we still face a critical question. If we continue to pursue an energy plan based on biofuels, what happens when we do face a shortage in crop production? The world will be faced with not just rising food prices but also with rising fuel prices. How do people in developed countries, who already have a difficult time affording food, feed themselves when the food supply is actually going into the fuel supply?

The blame game in Washington is heating up on skyrocketing gas prices. Republicans are criticized as being in the back pocket of the oil industry and partaking in crony capitalism. The Democrat Congressional Campaign Committee is even cashing in by hosting a fundraiser that is based on what has been the House Republicans “decade long relationship of protecting Big Oil taxpayer giveaways, speculations and price gouging…” However blame is also placed on Democrats, with accusations of placing barriers to prohibit domestic drilling. The debate has also centered around how we can be better environmental stewards. We may find ourselves asking questions such as whether green energy promotes environmental stewardship, and if oil drilling results in a dramatic harm to the environment?

An article published by the Washington Examiner contains disturbing numbers that will not be received very positively. Oil production in the Gulf was lower than predicated by the Energy Information Administration (EIA); however, imports were up:

While oil production in the Gulf is down more than 10% from April 2010 estimates, net crude oil imports are up 5%. At $83 dollars a barrel (the approximate average price of oil in the fourth quarter of 2010) that means Obama’s oil drilling permatorium increased American dependence on foreign oil by about $1.8 billion dollars in the fourth quarter of last year alone. The numbers only get worse as Obama’s permitorium further cuts into production. A Wood Mackenzie study predicts that for all of 2011 the permitorium will result in the loss this year of about 375,000 barrels of oil a day.

More imported oil also means higher prices at the pumps. The EIA explains: “Retail gasoline prices tend to be higher the farther it is sold from the source of supply.” It costs more money to transport oil to your gas station from the Persian Gulf than from the Gulf of Mexico.

On April 26th, President Obama wrote a letter to Congress calling for “immediate action to eliminate unwarranted tax breaks for the oil and gas industry, and to use those dollars to invest in clean energy to reduce our dependence on foreign oil.” The tax breaks President Obama is asking to be removed are worth $4 billion per year. This isn’t the president’s first call to action. His 2012 budget proposal also calls for the removal of the “subsidies.” But some have pointed out that the oil industry does not receive direct subsidy payments in the way that some farmers do. The president’s proposal specifically states:

Eliminates Inefficient Fossil Fuel Sub­sidies. Consistent with the Administration’s Government-wide effort to identify areas for sav­ings, the Budget eliminates inefficient fossil fuel subsidies that impede investment in clean energy sources and undermine efforts to address the threat of climate change. Approximately $4 bil­lion per year in tax subsidies to oil, gas, and other fossil fuel producers are proposed for repeal.

Here at the Acton Institute we have spoken in opposition to true subsidies, such as subsidized farming (articles can be found here, here, and here) and health care policy (a related article can be found here). In the past we have articulate the problems with subsidization. The language in President Obama’s budget proposal appears to be vague and does not specify where the oil industry will no longer be, in his words, subsidized. Is it in drilling? Does it affect gas prices? Ray Nothstine notes in his commentary, “High Gas Prices are Devastating to Poor” our moral obligation to the vulnerable and how the high gas prices are affecting them. With gas prices continuing to climb precautions should be taken to prevent even higher prices.

Brian Johnson, the American Petroleum Institute’s senior tax policy advisor, provides insight on the proposal in the president’s 2012 budget. Johnson explains that the president is proposing to remove the intangible drilling cost provision, which is the oil industry’s ability to deduct drilling “costs associated with labor, architecture, design and engineering; basically the building of an oil rig, a platform or any structure that allows the industry to get into the ground and find oil or natural gas.” Johnson claims this process helps in planning for the next stage of development and construction. Furthermore, Johnson claims the oil industry is already paying its fair share in taxes with an income tax rate at 48 percent. Whereas other S&P Industrials average a 24 percent effective tax rate. Stephen Comstock, also from API, responded to President Obama’s State of the Union Address in January, articulating problems with the president’s call to end subsidies for the oil industry.

While the call to end the oil subsidies is being criticized by some, others are supporting such an action. Bill Becker, a Senior Associate with Third Generation Environmentalism and an energy and climate specialist at Natural Capitalism Solutions, argues the subsidies place the United States at a competitive disadvantage to China and India in the competition to champion alternative energy:

If we are looking for ways to chip away at the budget deficit, to keep America competitive and to use market-based mechanisms to build a competitive clean energy economy, then subsidy reform should be near the top of the list.

Think of it this way: Imagine an Olympic marathon in which the U.S. team has to run on a steep and continuous uphill slope, while the teams from China and India run on a level track. That’s what “winning the future” will be like for the United States if we keep our perverse energy policies.  Direct and indirect taxpayer support for fossil energy, which far exceeds government support for emerging green energy technologies, almost certainly makes winning the future a futile race.

Becker also cites a report by the Government Accountability Office that claims “taxpayers are losing tens of billions of dollars in royalty payments in part because the Department of Interior doesn’t have sufficient capacity to monitor oil and gas production on public lands.”

In his letter address to Congress, the president calls to reinvest the $4 billion per year that the oil companies receive in subsidies into clean energy. The problem with current alternative energies is they are inefficient, not cost effective, and cause many unintended consequences (related articles on the inefficiency and unintended consequences of various alternative energies can be found here, here, here, and here).

Yes, we will need to develop good alternatives to oil over the long haul, but spending money on energy sources that are not effective is not a wise investment or a sign of being good financial stewards. If the tax provision and subsidies for the oil companies are to be cut, and taking into account the budget crisis the United States is currently facing, it may better serve the country to not reinvest the money and cut it out of the budget completely.

With the ongoing budget debate there is much discussion about what to cut and what not to cut, whether taxes should be raised, and if we should avoid even considering cutting certain programs. At the center of the discussion is the state of entitlement programs.

One program everyone in Washington seems to be leery of is Social Security. Whether it is because of ideologically supporting the program or afraid of ruining a political career, Social Security, again, may remain untouched. Political culture has taught elected officials to avoid the topic of reforming Social Security. In the past, those who have attempted to address issues related to it have been demonized. And when re-election time came around, many private interest groups made sure to fund ads to negatively attack anyone’s past attempts of reforming Social Security. However, with our current debt crisis and economic problems, now is not the time to ignore Social Security. Leadership is needed to tackle the hard problems.

Social Security has run aground. The Congressional Budget Office (CBO) reported that program will officially run out of money by 2037 if the program is not reformed.  Furthermore, the CBO also projects that this year Social Security will collect $45 billion less in payroll taxes than it pays out.

Just as alarming as the lack of leadership is the number of Americans who benefit from it who will be dramatically affected if Social Security does fail. According to the Social Security Administration (SSA) over 54 million Americans will receive $730 billion in benefits in 2011, these numbers also includes those who are disabled our receiving survivor benefits. For the month of February, the SSA paid over $58 billion to its beneficiaries. The numbers get even more daunting when they are coupled with the number of Americans who rely on Social Security as their sole source of income.

The SSA states, “Among elderly Social Security beneficiaries, 22 percent of married couples and about 43 percent of unmarried persons rely on Social Security for 90 percent or more than their income.” The Institute of Women’s Policy Research also provides alarming numbers. According to their data, in 2009, 29 percent of women and 20 percent of men relied on Social Security for all of their income. It is important to keep in mind that Social Security provides many elderly members with the necessary money to avoid poverty. As a result, instead of letting Social Security continue to run its unsustainable course, it is imperative to fix to program so vulnerable members in our society can continue to be aided by it. (more…)

I read with considerable attention “Congressional bosses from Hell: Sheila Jackson Lee” in the Daily Caller today. From the article:

Congress was in recess, and the 435 lawmakers who drive the frenetic pace on Capitol Hill were home in their districts glad-handing constituents. For that reason, the door to [Sheila] Jackson Lee’s office was open and the sounds emanating from inside were pleasant laughter and conversation.

‘You could tell when she wasn’t there,’ Stephens said. That was because on a day in which Congress was in session, a different set of sounds often came through closed doors to Jackson Lee’s office: screaming and, many times, crying.

Having worked for a U.S. Congressman, former member Rep. Gene Taylor (D-Miss), I find some of the congressional staff dynamics and stories both entertaining and troubling. Many of the stories and anecdotes I tell from my time working on a congressional staff are among the most popular for audiences. I also learned a lot of valuable people skills, patience, and greater compassion for helping those in need. In my case, I had the privilege of helping many military veterans with federal issues.

Recently, I attended a social event where some staff of several well known Michigan lawmakers openly unloaded on the arrogance and temperament of their bosses to me in conversations. It did not surprise me. I have heard many similar stories before. It continually reinforces the well known Lord Acton adage about the corrupting nature of power.

I learned a lot from working with and for a congressman and his staff. Many of the lessons I will retain forever. In contrast to the piece in the Daily Caller, here is just one important lesson I pulled from a talk and essay I wrote for Acton on Tap:

The congressman I worked for, Gene Taylor (D-Miss) did help to reinforce something timeless and virtuous.

One day I was dispatched with the duty of locating him in the Rayburn House office building. The reason was simple; the Secretary of the Navy was waiting for him in his office. Some of the staff was panic stricken and mildly embarrassed because they could not ascertain his whereabouts and he was terribly late for the meeting. Congressman Taylor was not frequently attached at the hip with his cellular phone or pager. I remember looking in all the places you would look for a House member in the Rayburn building and not being able to locate him. After I had given up, I preceded to walk up the stairs and found him talking with a maintenance worker in the stairwell.

I told him that the Secretary of the Navy was in his office and he nodded his head and introduced me to his friend, whom he treated like a celebrity, bragging up the individual’s fishing skills. While I did not always agree with the positions or votes he recorded on issues, Gene Taylor always reinforced the significance of treating people the same. He also taught me a valuable life lesson when he told me:

‘You know why I’m friends with the capital police, the maintenance workers, and the common fisherman down at the harbor? It’s because they will continue to be my friends when I am no longer a congressman.’

Blog author: jballor
Wednesday, February 23, 2011

From Abraham Kuyper’s opening address to the First Social Congress in Amsterdam, November 9, 1891, The Problem of Poverty:

The first article of any social program that will bring salvation, therefore, must remain: “I believe in God the Father Almighty, Maker of heaven and earth.” This article is today being erased. Men refuse any longer to recognize God in statecraft. This is not because they do not find the poetry of religion charming, but because whoever says I believe in God thereby acknowledges God’s ordering of nature and an ordinance of God above human conscience–a higher will to which we as creatures must submit ourselves.

Kuyper said this at the close of the nineteenth century, and in the intervening decades the question of the place of the Christian faith in public life has become even more pressing.

This year’s Novak Award winner Hunter Baker has written an important volume on the place of religion in civil discourse, The End of Secularism. He also participated with Jonathan Malesic on a controversy appearing in the latest issue of the Journal of Markets & Morality on the question, “Is Some Form of Secularism the Best Foundation for Christian Engagement in Public Life?” (PowerBlog readers can get complimentary access to the controversy in PDF form here.) Baker and Malesic were also kind enough to follow up on their exchange in the journal with a Radio Free Acton podcast, “Concealing Christian Identity.”

This year also marks the 120th anniversary of the First Social Congress, held in Amsterdam from November 9-12, 1891. In that same issue of the Journal of Markets & Morality, we have the pleasure of publishing a translation of a paper composed by Herman Bavinck at that congress, “General Biblical Principles and the Relevance of Concrete Mosaic Law for the Social Question Today.” This translation also includes an extensive introduction from John Bolt, who writes of the “overlooked” tradition of European social congresses as “organized movements for social reform, often including a variety of groups and interests, and acting in varying degrees of concert over an extended period of time.”

Blog author: abradley
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.

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.