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  • Morning Bell: Don't Take the Bait for Obama's Trillion Dollar Spending Trap

    Across the country today, President-elect Barack Obama got exactly the headlines he wanted from his supporters in the establishment media. “Obama Pitches Stimulus Plan: GOP Asked to Help Design” says the Washington Post. “Obama Sweetens Stimulus for GOP” reports the Los Angeles Times. Obama Finds Lovefest on Capitol Hill blares the San Francisco Chronicle. Obama’s strategy is clear: make as big a show of bipartisanship as possible to provide the most amount of conservative cover for what all signs point to being at least a $1 trillion stimulus package. Hence the New York Times reports, “Mr. Obama pledged to help advance the legislation in any way he could, participants said, including inviting skeptical members of Congress to meet with him at his transition headquarters or at his temporary residence, the Hay-Adams Hotel.” Hopefully Republican votes in Congress are more expensive then a lunch at the luxurious Hay-Adams Hotel.

    But the bigger worry is that conservatives in Congress will sign their names to almost $1 trillion in new federal government spending in exchange for a measly $300 billion in temporary tax cuts. Rugters University professor Ross Baker told the LAT: “That’s Republican bait. It’s difficult for many Republicans to vote against a large tax cut.” Baker is right; generally Republicans ought to favor large tax cuts. But not all tax cuts are created equal. Short term tax cuts (like rebates, holidays, etc.) simply do not work. Both the Bush 2001 tax rebates and the Bush 2008 tax rebates failed to stimulate the economy. Only long-term tax rate reductions trigger the important economic decisions that a real recovery depends on like more investment in new factories and new equipment.

    And what is the price for conservatives if they accept $300 billion in temporary tax cuts? Hundreds of billions of dollars in new entitlement spending on benefits like unemployment insurance for part-time workers and Medicaid eligibility for laid-off workers. Hundreds of billions of dollars in bailouts for profligate states like California, New York, and New Jersey. Hundreds of billions of dollars in new spending on infrastructure projects which will do nothing to stimulate the economy.

    As Sen. Everett Dirksen (D-IL) quipped during the Great Society spending boom of the 1960s, “A billion here, a billion there — pretty soon, you’re talking real money.” The Wall Street Journal adds:

    How quaint. In modern Washington, trillion is the new billion. … The human mind is not well equipped to fathom a number that large. A check for $1 trillion — a million million dollars — would have 12 zeros to the left of the decimal point. Homo sapiens hadn’t evolved a trillion seconds ago: 31,546 years in the past, Neanderthals were still trying to make fire. More immediately, $1 trillion is about one-third of annual U.S. government spending and 13% of the U.S. economy. It is more than the GDP of all but 12 countries in 2007 (America, Japan, Germany, China, the U.K., France, Italy, Spain, Canada, Brazil, Russia and India, in that order).

    Obama likes to say, “We are being guided by what works, not by ideology.” But if that is true, then he should listen closely to his Council of Economic Advisers chairman Christina Romer, who has published economic studies concluding that: 1) tax increases harm economic growth; 2) permanent tax cuts lead to greater economic activity; and, most importantly, 3) increased government spending has at best a small effect on stimulating economic activity.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    34 Responses to Morning Bell: Don't Take the Bait for Obama's Trillion Dollar Spending Trap

    1. LVKen7@Gmail.com - says:

      The HF and the rest of the Cs are

      SO PHONEY

      they can't believe

      Obama can be sincere

      for wanting to heal the split

      that BuSh has caused.

      I keep hoping for a

      "Let's give Obaama a Chance"

      from HF, and the Cs

      but probably not.

      KJ

    2. Joaquin, Raleigh, NC says:

      I expect Republicans to 'roll over' on this package much like they've done with most issues lately.

      Unfortunately, he Obama tsunami is still rolling and we will all get 'soaked'

    3. Mel, Santa Barbara, says:

      They could fix the budget by fining the millions of vehicles with no front license plates because they are required by law. They could fine the thousands of people who have junk cars and trucks, etc. on their front lawns. These are a danger during fires because of the gas in the tanks. Also, the yards and vacant lots full of dry brush, also a fire hazard. They could fine the people who have left their cars, trucks, campers, etc on the street for fifteen or twenty years without moving, and they don't run and they have body damage. They could fine the people who have basketball hoops in the street and play basketball all day, obstructing traffic, also storing personal property in the street, like they do their junk cars, etc. Maybe get rid of the cops who are refusing to do their job and take care of all these things. And the ones in City Hall who also refuse to do anything about any of this. Replace them with people who will do the job they are hired to do. And why do the cops always say it will take them three days to come out whenever we call them for any reason and then they never do come out? Who can we call instead? This all lower property values and make it impossible to sell our homes. Why doesn't someone do something?

    4. AllenS says:

      It's time for Republicans to take a page out of the Obama political playbook, and vote present.

    5. LVKen7@Gmail.com - says:

      I wish someone would explain to me

      what difference THIS POST Makes

      "An ACORN employee has been charged in federal court with submitting false information on Missouri voter-registration cards, including turning in cards from nursing home residents without their knowledge."

      If the Nursing Home residents

      DO NOT VOTE

      What difference does the Registration make?

      I KNOW HF HATES ACORN

      WHY?

    6. B.J. Culver, Lovelan says:

      From the sound bites I've heard on radio and TV, Senate Minority Leader Mitch McConnell has taken the bait, as you so aptly expressed. Can you get through to him that we are tired of this unending spending? Can the Republicans start acting like Reagan Republicans? Does any Republican on Capitol Hill actually have a spine any more? Thank you.

    7. Anthony F Riordan Jr says:

      Dear Team.

      I wrote and commented specifically on Maine and my need to have contacts or information that supports your goals and could be specific to taking back control of Maine in 2 years. I have not had a response which continues to concern me after my being ignored by other groups. The state of Maine has not only moved so far to the right and the people have been lied to creating one of the most government needy societies yet this is not pointed out. The state of Maine could also be saved if just one ad was placed showing why the state of Maine has devolved since the late 70's.

      I have information also on other information kept secret from the American people which could create a situation were you are for the people and are willing to bring forth information hidden for more than 50 years.

      Thank you,

      Sincerely,

      Anthony F Riordan Jr.

      Riordan Energy Service Co., Unlimited

      RESCU

    8. Dorothy Morgan, Okla says:

      B.J.: I don't know how old you are; I'm very old

      and was a fully developed adult when we fell for the Reagon Presidency. Believe me, Sweetheart, we

      don't want to go there again. Go back and look at

      some tax statistics and the old speeches.

      Ron was a beautiful actor….and we love that here.

    9. memomachine says:

      Hmmmm.

      "If the Nursing Home residents

      DO NOT VOTE

      What difference does the Registration make?"

      And how do you know that there wasn't a vote cast in their name?

    10. Barb- mn says:

      Ya know LVKen7, I can't understand your problem? Here is a president elect wording in various ways and subliminally, the dismissal of FREEDOM. Conservatives stand for freedom. Freedom requires personal and individual responsibilities. As human beings it is our duty to carry out our responsibilities. Are you less of a human to not want to carry out your own existence on your own? You need your hand held by GOVERNMENT? Your so selfish you want to force the hand of government to hold all others hands?

      And in your regard to ACORN, yea, why would acorn employees fraudulently register anyone they can? If it makes no difference? It obviously does make a difference or the acorn employees wouldn't be doing the opposite of what their job requires…causing needless wastes of time and money for everyone else. You think democrats are going to be truthful and expose the benefit of their ACORN employees lack of WORK ethics?

    11. Eduardo "Mr. Ed says:

      Our Nation was founded when the King of England levied 5 cents tax on tea. It is way past time for a second Boston Tea Party. 50% of what we earn goes to pay the taxes levied upon us. I wish Heritage would host the party and/or show us the way to get started. Someone has to. Our democracy is in danger of being transformed into a socialist state…even worse: the Black Liberation Theology preached by Rev Wright at Trinity Church (the same one that Barak Hussein Obama II attended for 20 years)could become a reality. Google teaches what this theology is all about. It is frightening.

    12. Michael J O'Bri says:

      Obamanites are having a ball, and at our expense and it will get only worst. Consider what the democrats have already achieved with their philosophies. Two of the highest tax states, New York, and California both have huge deficits, and their solution, raise taxes more. New Jersey, another high tax and democratic state since 2001 to 2007 has shown job growth in only the public sector. In New Jersey, private sector job growth has been flat. Look at the state of Michigan, democratic and union, it is dismal and depressing with the highest unemployment rate in the country. Economic history has proven, where government is large, wealth cannot be created. The democrats with assistance from some Republicans will insist that the entire country adopt this failed economic model. Now the Democrats have given the country the governor from Illinois, failed to seat Burris [an historic event], Al Franken whose election win is criminal. The democrats will turn this country into a banana republic. Oh,let's not forget Panetta as CIA Director, caving into the left, and not protecting this great nation. We are in for some ride.

    13. Stephen Hill-Americu says:

      The problem with history-is that democrats of the liberal bent do not see why history repeats itself! Especially with tax deficit states like New York and California! People can't see past their noses to see that having more taxes hurts them! I guess they want to pay higher taxes for the likes of a new liberal President!

    14. Pingback: Instapundit » Blog Archive » OBAMA’S STIMULUS STRATEGY: A trap for Republicans? UPDATE: Kudlow likes the cut of Obama’s jib,…

    15. Pingback: Obama Mimics FDR’s Failed Policies - Bluey’s blog - RedState

    16. Dean Gilchrist says:

      Welcome to the world of politics! Sometimes your articles sound as though you are doing your best to stir up a kind of political warfare. Are you going to give the Republicans a chance to review this package, or are you just trying to kill it before it gets off the ground?

    17. len, Alexandria,KY says:

      While I am willing to give Obama achange.. I am definately not sold on the Following paln:

      600,000 new Government jobs..Who in heck will pay for these ?? Are governments bureaus already over bloated by inept people?? Short Term it'll deepen the hole in the budget.. long term it'll ruin any chance of balancing it ( Retirement and Health costs)

      $ 500 to every non tax paying American is really Welfare for vote buying and based on the first stimulus package.. it'll be another waste of tax payers money and eventually it'll result in higher taxes…

      I feel instead that cutting Capital gain taxes.. the death tax.. keeping Bush's tax cuts and reducing Corporate taxes for American job creations will result in a quicker turn arond.

      And if Congress desires to regain credibility, they should go after the Feddie and Fannie disaster culprits with the same fervor that they are going after Madoff even if it meand Uncovering more Inepts in Congress.

    18. Pingback: Don’t Take the Bait for Obama’s Trillion Dollar Spending Trap

    19. Pingback: Citizen Paine Blog » My advice to Republicans: Don’t bite

    20. Pingback: ChooseTheHero.com » Blog Archive » Obama Mimics FDR’s Failed Policies

    21. floyd oleary says:

      One item could have more effect on the economy than alll other.

      A real" Energy Policy " !

      This would create well paying jobs.

      Some drilling in close for immediate effect. No corn ethanol , use green waste. Free up more land for food crops. Help with seed money on projects that have promise. Use co-generation, wind ,solar , synthetic fuel, and keep producing current fuels as a bridge product. We have a chance to quit sending money out of the country for foreign oil.

      If this was worked on hard and steady , many problems would be put to bed by the process itself.

    22. mike hutchings texas says:

      is it a tax cut when they print money and give people welfare checks.

      how are taxes to be cut when they create jobs for 600,000 lillys of the field that will not sow or reap but give orders to people who do.

      this stimulus is a FOR MAD MEN ONLY moment where the nature of reality and real estate must be questioned because they are out of synic with each other.

      the industrial base is being lost and the innovation that comes from the factory floor can not be replaced by the reasoned and scripted councils of officialdom.

      innovation will pass to other lands that will believe they have something to fight for besides the pretentions of a new priesthood devoted to regulation and a new age luddite rehashing of the green goddess to save the planet enforced by these new lillys.

    23. geoff says:

      LV–we hate ACORN because they engage in voter registration fraud to get Democrats elected.

    24. Dave Schraub, coates says:

      Can somebody please answer a question for me? Why are the liberals so angry? This is the greatest country in the world, you have all the personal freedoms that you can ask for. You have the freedom to make money, raise a family, without fear of a terrorist attack at your local mall. You can travel anywhere in this great country, without any trouble. So why are you so pissed? Why do you feel compelled to destroy the greatest country in the world? I think your personal live's are so miserable, that you have to try and make everybody else's life miserable. Please somebody answer me. You can't make me believe that politics offend you so much. I believe in the conserative republican philosophy, I believe in GOD, you don't have to. I don't believe the government should take care of me, I think that you should get a copy of the constitution, and read it, then you can tell me what rights you want that you don't have.

    25. kb,westminster,sc says:

      Mr Basurto you are right on the money. I agree that it is time for a second tea party. I hope more americans will take their blinders off and realize what is happening to our country. I do not want to live in a socialist society. Wright,not worthy of having reverend put before his name, has just been put to the side to insure the president-elect made his way to the white house. He will resurface before too long. All in all it is time for each of us to quit depending on a hand out or bail out and do like our fore fathers by earning what we have with hard work and most of all bring back the meaning of IN GOD WE TRUST!!!

    26. LVKen7@Gmail.com - says:

      TO Barb- mn writes:

      FROM – LVKen7

      *** Before I start,

      please notice,

      I include my Email address in what I write

      HOPING READERS WILL CONTACT ME FOR DISCUSSION.

      SINCE I HAVEN'T HEARD FROM YOU

      I WILL REPLY HERE AND PUT IT ON THE HF HATE GDOC.

      Ya know LVKen7, I can’t understand your problem?

      *** I read the HF Email FIRST.

      THEY provide the BEST info I get anplace,

      but IT IS THEIR SPIN ON IT THAT BOTHERS ME.

      Here is a president elect wording in various ways and subliminally, the dismissal of FREEDOM.

      *** One of the things I don't understand about Cs is

      THEY SELDOM USE EXAMPLES.

      Thomas Soule writes – but I never understand what he means

      because he give NO EXAMPLES.

      GIVE US AN EXAMPLE OF WHAT YOU MEAN.

      Conservatives stand for freedom. Freedom requires personal and individual responsibilities. As human beings it is our duty to carry out our responsibilities.

      *** But, I see THAT as Cx

      DON'T CARE FOR THE SICK,

      WORKERS,

      UNIONS,

      TEACHERS,

      SCHOOLD,

      THE LESS….

      Are you less of a human to not want to carry out your own existence on your own? You need your hand held by GOVERNMENT?

      *** No.

      The WORSE THING REAGAN EVER SAID WAS

      THE GOV'T IS THE PROBLEM.

      The Govt is NOT the problem.

      Your so selfish you want to force the hand of government to hold all others hands?

      *** No,

      but The Cs – YOUR SIDE

      is against choice

      and letting people choose.

      You talk out of both sides of your mouth,

      Less govt = but WE HAVE A BIGGER GOVT NOW

      THAN ANY TIME IN OUR HISTORY

      Less Taxes = but we are deeper in debt than EVER.

      And in your regard to ACORN, yea, why would acorn employees fraudulently register anyone they can?

      *** THAT is what I would like to know.

      If it makes no difference? It obviously does make a difference or the acorn employees wouldn’t be doing the opposite of what their job requires…causing needless wastes of time and money for everyone else.

      *** OK,

      but if someone is registered

      and DOESN'T VOTE.

      What difference does it make?

      You think democrats are going to be truthful and expose the benefit of their ACORN employees lack of WORK ethics?

      *** HUH?

      "benefit of their ACORN employees lack of WORK ethics?"

      I subscribe to ACORN Site

      ALL they ever do is ASK FOR $$$$.

      I just ignore them.

      Try that.

      I posted this at –
      http://docs.google.com/Doc?id=dgwzbkk9_720c8b6s3g

      Send me an email.

      KJ

    27. Kent, Virginia says:

      LVKen7 in Las Vegas is a perfect example of the new age voter. In text message 'style' where incomplete sentences, poor grammar, punctuation, and improper abbreviations have replaced real english written in lucid, well crafted and punctuated sentences, this respondent shows us what the Liberal Fascists in our educational system have wrought.

      The world view that had Chicago in flames during the 1968 Democratic Convention has succeeded in taking over the party of the left. They were called SDS in those days. Now they run ACORN, a multi-million dollar conglomerate involved in voter fraud in more than a dozen states; and they are college professors, like Bill Ayres, who helped groom and finance a far left socialist for the Presidency. They have the reins of control of the Federal Government and of many state governments.

      Our media is in the hands of so called 'journalists' who view themselves as social engineers. They are also the product of the Liberal Fascism infecting our universities.

      In a discussion with me the other day a young liberal wondered aloud what the framers of our Constitution and Bill of Rights would think of their government today. Without hesitation I said they would say it is past time for another revolution. Big government, greed, and cronyism have our country in a financial spin this computer generation has never seen. The seeds of Secular Humanism, planted and nurtured way back in the 1930's are now bearing fruit.

      Obama will make a show of seeking bipartisanship for his Bigger Government, bigger spending plans and will do everything he can to appear to be The One he thinks he is. His brand of government is just Marxist-lite.

    28. frankz, brewster, ny says:

      Reagan's star wars spending, creating the conglomerates we have today and all the tax cuts for the wealthy have certainly not helped America. The economies of scale appear to have backfired. Maybe we should return to a more realistic plan than these pie in the sky theories. We've outgrown ourselves and made a mess of the whole world in the process. Let's return to leading by example and let the chips fall where they may.

    29. KellyRae, Fort Worth says:

      Can someone explain to me how dumping billions into the auto companies in MI and trillions into stimulus checks is going to anything except bury this country in deeper and deeper trouble? It is not doing anything about ensuring that there is long term employment for anyone. Great, I might get a stimulus check like the last one to buy a weeks worth of groceries! But my husband will stay laid off from the natural gas drilling field because the companies are only keeping the rigs that are using "experimental" drilling equipment…How do they plan on heating houses and running all these great big SUV's that are going to be built in MI? I guess we should save our stimulus check to burn when we are getting frost bite!

    30. Barb -mn says:

      I WILL REPLY HERE AND PUT IT ON THE HF HATE GDOC.

      me: Ya know LVKen7, I can’t understand your problem?

      you:*** I read the HF Email FIRST.

      THEY provide the BEST info I get anplace,

      but IT IS THEIR SPIN ON IT THAT BOTHERS ME.

      me: They're taking the spin out, my friend. Looking at every angle.

      Here is a president elect wording in various ways and subliminally, the dismissal of FREEDOM.

      you: *** One of the things I don’t understand about Cs is

      THEY SELDOM USE EXAMPLES. me: Another definition of freedom is to live free of the government outside of protection from our enemies and unlawful people. safety and health where the public is concerned. etc. oops.

      you: Thomas Soule writes – but I never understand what he means

      because he give NO EXAMPLES. me: A country of Freedom ensures people have the opportunities to live free. To be responsible for themselves and the children they bring into the world and under civil law which is the only law for the equally common good of all mankind. For people to know instinctively to adapt to hardships, etc. oops.

      you: GIVE US AN EXAMPLE OF WHAT YOU MEAN.

      me: Conservatives stand for freedom. Freedom requires personal and individual responsibilities. As human beings it is our duty to carry out our responsibilities. I hope the above explained.

      you: *** But, I see THAT as Cx

      DON’T CARE FOR THE SICK,

      me: Don't you think we get sick?

      you: WORKERS,

      me: Don't you think we work?

      you: UNIONS,

      me: Have potentiality to bankrupt companies and teachers unions are just corrupt.

      you: TEACHERS,

      me: We love teachers that teach our children the facts and show no bias of what they may be teaching and respect the opinions of our children and use their intelligence to see more money is not teaching our children any better nor is it building higher standards as obama wants to mandate college and preschool due to the failure of elementary school as it turns into social day. And which is taking choices away. Maybe I want to bond and teach my own child from birth to kindergarten. Maybe I've had children in public schools and see the indoctrination put on them. Maybe I don't appreciate the governments will to teach my child from 3 to 22. If mandated, I don't have a choice. The government is taking it away.

      You, not sure what?: SCHOOLD,

      THE LESS….

      me: Are you less of a human to not want to carry out your own existence on your own? You need your hand held by GOVERNMENT?

      you:*** No.

      The WORSE THING REAGAN EVER SAID WAS

      THE GOV’T IS THE PROBLEM.

      The Govt is NOT the problem.

      me: The government is the problem. There is too much. They took immigrants for granted and caused them to be dependent on government instead of encouraging independence. Welfare recipients, American born think that is all there is to live for.

      me: Your so selfish you want to force the hand of government to hold all others hands?

      you: *** No,

      but The Cs – YOUR SIDE

      is against choice

      and letting people choose.

      me: How wrong you could be. The only choice we're against is the choice to be responsible or irresponsible with no reprimand to the latter but reprimand to the innocent and that being the responsible taxpayers. When I turned 18, I didn't have a choice. College was at my expense one not within my means. I went to work. A job with health insurance that I paid for.

      you: You talk out of both sides of your mouth, me:- I don't understand this personal attack?

      not sure? Less govt = you: but WE HAVE A BIGGER GOVT NOW

      THAN ANY TIME IN OUR HISTORY- me: not our fault. We've been against it all along…

      you: Less Taxes = but we are deeper in debt than EVER. me: Blame that on a variety of government intervention and unintelligent decisions. And selfishness. Here's an example: Acorn is also a part of the housing for the poor and is tax funded to at least some point if not entirely. Some of YOUR side accepted 100,000 of dollars to aid in their own self images by taking from the poor.

      me:And in your regard to ACORN, yea, why would acorn employees fraudulently register anyone they can?

      you: *** THAT is what I would like to know.

      me: If it makes no difference? It obviously does make a difference or the acorn employees wouldn’t be doing the opposite of what their job requires…causing needless wastes of time and money for everyone else.

      you: *** OK,

      but if someone is registered

      and DOESN’T VOTE.

      What difference does it make? me: What if they do vote? What if the people that register and the person that registered them meet up at the polling booth and the one who registered them was an election judge? Nothing has been far fetched to this point.

      me: You think democrats are going to be truthful and expose the benefit of their ACORN employees lack of WORK ethics?

      you: *** HUH?

      you quoting me:“benefit of their ACORN employees lack of WORK ethics?” me: Did that sound funny? Well? Isn't Acorn's job to help those that can't help themselves to register to vote? And aren't they run by the majority of the democratic party?

      you: ALL they ever do is ASK FOR $$$$.

      I just ignore them. me: That's the best thing I've read from you! I don't like Acorn. They are intentionally corrupt. They intimidate and bribe people for their registration. I'd rather have an honest vote of the people who hear what needs to be heard and that of what is not. You know, like freedom being taken away from those that know what it is and those that will never know.

      you: Try that. me: I don't donate knowingly. But I do pay taxes.

      You: I posted this at -
      http://docs.google.com/Doc?id=dgwzbkk9_720c8b6s3g… me: Is that a threat? Sorry, I couldn't help myself.

      One more thing conservatives do not like is waste. You sure do like to waste alot of space. I toned it down a bit. Maybe you should also.

    31. Pingback: More Bailout Notes (And Some General Economics Ones) « 36 Chambers - The Legendary Journeys: Execution to the max!

    32. Hozro1, Oregon says:

      If a Trillion now is the old Billion, and in the last forty years America spent forty Trillion specifically on African-American programs, that must have been a whole lot of money, and it sure didn't work! Not according to most of the African-American Leaders, Preachers, and the Media.

      Maybe spending money on problems is not the answer! Maybe just letting things work themselves out is the answer.

      Nobody in Government cared about Commercial fisherman just to save some Sea Lions.

      Nobody in Government cared about Loggers and Mill workers jsut to save a Spotted Owl.

      Now it seems like nobody in Government cares that everyone in America is going to have to suffer more "hidden" taxes, because of the so called "Green House" situation, when all the rest of the world that we do business with just keeps on poluting like there's no tomorrow!

      Maybe we just ought to say no to whatever the Government says, and every election, vote for the "New Guy" who isn't a Democrat or a Republican.

      Hozro

    33. Barb -mn says:

      lvken7, I can see where you would lay blame on me talking out of both sides of my mouth. When I spoke of not having a choice to go to college because it wasn't within my means, IT was a PERSONAL, RESPONSIBLE CHOICE. Sure, I could've CHOSE to put myself in debt and play the redtape. But that choice is not me. I went to work. A job with health insurance that I paid for. So sorry you are unable to figure things out for yourself. Or put two and two together. Or open your mind.

      you: You talk out of both sides of your mouth, me: if you were intelligent enough to open your mind you would know your insult only holds bearing to those of narrow minds.

    34. Aotjwlgz says:

      3Q4LAt comment2 ,

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