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  • Morning Bell: Christmas in September

    For most Americans, there are 100 shopping days left until Christmas. But for the special interests in Washington, there are only 10 shopping days left with Congress tentatively set to adjourn for the year on Sept. 26. One would hope the financial turmoil on Wall Street would give legislators pause to revisit past mistakes. No such luck. Even though the last $170 billion stimulus did nothing to help the economy, liberals in Congress are now pushing for upward of $75 billion in new deficit spending. The left has been preparing this deficit spending plan for weeks, but it has gotten nowhere. Now liberals are using the latest headlines from Wall Street to push their plan.

    In their more honest moments, both presidential candidates admit the current crisis on Wall Street is rooted in the falling value of real estate. Conservatives believe the market should be allowed to correct itself. One would hope responsible liberals would keep their proposed legislative fixes to addressing the housing market. No such luck. They are pushing for a wide array of goodies for their special interest allies, including new infrastructure spending, bailouts for states that can’t manage Medicaid costs, subsidies for alternative energy, subsides for home heating oil, increased unemployment benefits, and a bailout for the auto industry. None of these items is designed to help stabilize home prices in the short or long term.

    The biggest piece of the left’s plan is billions in deficit spending for infrastructure projects liberals say will create jobs. And they are right, the government’s checkbook can create as many jobs as it wants. But at what cost? A 1986 Government Accountability Office (GAO) study of a multibillion dollar infrastructure spending plan found that each job created by the government cost $546,136 in 2007 dollars. There simply is no such thing as a free lunch. For every job “created” by government spending, there are offsetting job losses due to decreased private consumption and investment.

    A taxpayer bailout of the auto industry makes even less since. Many Americans are facing tough times, but we cannot spend our way out of the problem. Lower tax rates, reduced barriers to trade, an end to systemic risk in housing markets, and fewer government restrictions on American energy production are a better way to go.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    4 Responses to Morning Bell: Christmas in September

    1. Joanne Conrad, Genes says:

      Regarding your mention of "reduced barriers to trade," in today's Morning Bell, do you have any research about HR 2600, called the Border Tax Equity Act that, apparently, has gone nowhere? Would it really benefit US mfgrs, reduce trade deficit, create more US jobs, strengthen the dollar, etc?

    2. Ken Jarvis - Las Veg says:

      Jay Leno =

      “Well, it’s a very strange political campaign.

      I mean, out on the campaign trail,

      John McCain and Sarah Palin are talking about

      how they stood up to the Republican party,

      they fought the Republican establishment, and

      they battled Republicans.

      Their message: vote Republican.”

    3. William Lulias; St. says:

      It strains ones credulity to understand the liberal mentality of throwing money at the problems our nation faces. After supporting Bill Clinton in his quest to fast track NAFTA as we watched jobs leave at a rapid rate (remember the sucking sound Ross Perot talked about?), they want to increase unemployment rates, and bailout the auto industry. Maybe the Democratic Party and their leadership qualities can be summed up with their pick for a Presidential Candidate. If Obama, with his association with radical preachers and the likes of Resko and Ayers were to apply for a job with the FBI or better yet, if he was in the military and attempted to secure Top Secret Security Clearance, he would have been denied in both instances. But hey, the media knows better.

    4. Ken Jarvis - Las Veg says:

      HF has " Barack Obama supporter Oprah Winfrey is telling her 44 million viewers to pressure Congress to support a spending bill authored by Sen. Joe Biden (D-DE) and opposed by Sen. Tom Coburn (R-OK).

      WHAT THEY DON'T TELL YOU IS –

      S. 1738, the Combating Child Exploitation Act.

      What?

      The HF is AGAINST "Combating Child Exploitation"?

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