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  • Morning Bell: The White House Defends Public Equity

    Up is down, left is right, good is bad, and day is night. If you wander inside the Washington, D.C., beltway, you’ll enter a bizarro world where, at times, commonsense is replaced by a localized logic that is completely divorced from the reality.

    The latest example of political gobbledygook comes courtesy of White House press secretary Jay Carney, who yesterday lapsed into rambling rhetoric when asked to explain how President Obama can defend the failed Solyndra solar boondoggle, yet attack private sector investments that sometimes fail but oftentimes succeed. Here’s his response:

    Look…there, there, there is the…the…difference in that, your overall view of what…huh, your responsibilities are as president and what your view of the economic future is.

    And the president believes as he’s made clear that a president’s responsibility is not just to, ah, those who win but those who, for example in a company where ah, there have been layoffs or a company that has gone bankrupt, that we have to ah make sure that those folks have the means to find other employment, that they have the ability to train for other kinds of work and that’s part of the overall responsibility a president has.

    Got all that?

    For the duration of his Administration, President Obama has dished out billions of dollars to politically favored companies in pursuit of job creation and a new “green” economy. It’s taxpayer-funded crony capitalism that has neither created new jobs nor produced the green-energy payout that the president was looking for. In fact, it’s a policy that has failed miserably, leading to bankruptcy after bankruptcy. Yet despite all the failures — and zero successes — the president and his Administration are defending the indefensible and standing by a policy that has squandered taxpayer money.

    In one instance, President Obama committed $465 million of taxpayer money to Tesla, which was founded by a campaign mega-donor and the 63rd richest man in the world, Elon Musk, to build a $130,000 battery-powered sports car that becomes permanently inoperable if left uncharged for 30 days.

    It’s gotten so bad that Congress is launching probes of federal green energy programs, including the Energy Department loan program, over concerns that lawmakers fast-tracked approval for politically connected companies. Heritage’s Lachlan Markay reports that according to a Republican aide on the Senate Budget Committee, “Politically favored, and often connected, renewable energy plans [receive] less rigorous review than traditional energy projects.” In one program, of the $20.5 billion in loans granted, $16.4 billion went to companies linked to donors who contributed to Obama and the Democratic Party.

    At the same time the president is defending his taxpayer-funded failures, he’s attacking free enterprise, including in private equity and venture capitalism — enterprises in which investors voluntarily put up their own money to invest in new ideas and rescue existing companies. Sometimes those ventures fail, sometimes their inevitable failure is delayed but temporarily saves jobs amid restructuring, but many times they succeed — generating profits and producing new jobs.

    When Carney was asked to justify the president’s defense of one, but criticism of the other, he just couldn’t do it. That’s no surprise, in that the two positions are logically inconsistent.

    This episode calls to mind a quote from George Orwell, a frequent and pointed critic of modern political discourse:

    In our time, political speech and writing are largely the defence of the indefensible… Thus political language has to consist largely of euphemism, question-begging and sheer cloudy vagueness… the great enemy of clear language is insincerity. Where there is a gap between one’s real and one’s declared aims, one turns as it were instinctively to long words and exhausted idioms …

    Maybe Jay Carney’s confused speech is the result of the unbearable heat and humidity that has descended on Washington all too early this year. Or maybe it’s a bad case of Potomac fever. But no matter the cause, the results are the same. In Washington, the Obama Administration is hard at work defending the crony capitalist machine while lambasting the free market system — and it shows no signs of letting up.

    Quick Hits:

    Posted in Ongoing Priorities [slideshow_deploy]

    54 Responses to Morning Bell: The White House Defends Public Equity

    1. Turner says:

      It was that dad'gum George Bush……….oh, wait, the President is running out of people to blame, he is incompetent or this is intentional destructive behavior with the strategy to hinder America's reactions to coming attacks being planned on the other side of the globe.

    2. When you find yourself in a hole, stop digging.

    3. Curt Krehbiel says:

      "In Washington, the Obama Administration is hard at work defending the crony capitalist machine while lambasting the free market system — and it shows no signs of letting up."

      And is not chaos an integral step in the transition to Communism?

    4. will says:

      Psst… this is top secret; there is a rumor that Tesla founder and Obama mega-donor Elon Musk was on the Kill List. An Administration drone dropped $465 million on him. An unconfirmed source reports that the only casualties were a couple of 1% U.S. taxpayers.

    5. Thank you for all you do. I have been a subscriber for years now. My only real issue I have with you and with most other conservative sites is that you call for a more moral government and a more moral citizenry with issues of abortion, gay marriage, and Federally funded contraception, yet you overlook a major moral flaw of taxing income at the point of earning.

      We need to tax consumption not income.

      The logic behind the consumption tax rests not solely on mathematics and economics, which have for many years been put to the test by experts in these fields, but on the immorality of taxing personal income before we can use those earnings to meet the needs of ourselves and our families. The fruits of our labor, our founding fathers wrote, are our private property, not the spoils of government to put to its own uses, no matter how altruistic the intent might seem.

      to be continued:

      • will says:

        Wow! Thanks for some great insights. See what you think of this:

        Free enterprize without morality is exploitation,
        Morality without free enterprize is Greece.

        • will says:

          Pardon the Freudian Slip… that's the Obama Administration spelling where their version of free enterprise is giving free prizes to their donors.

      • O2BMe says:

        I don't like taxing real estate either. The rates are not fair and equal and they are never adjusted for a drop in real estate value. Homes have lost value but taxation has not dropped. The only problem with the sales tax is some states, like Illinois, have such a high sales tax already that if the Feds add one on top of it the lower-income people will not be able to afford it If you add all the taxes we pay to city, county, state and federal, we probably pay 50 percent or higher of our income. It would solve the problem of 50 per cent of the people who pay no taxes at all. A sales tax would also catch the illegals who don't exist on the tax roles.

    6. Our current tax code consists of an astounding 78,000 pages and continues to grow by the day. It is riddled with exemptions so numerous and contradictory not even the trained experts at the IRS can make sense of them. On the other hand, a consumption tax would not just be simple and transparent; it would drastically improve the prosperity of the struggling lower and middle classes as well as small businesses.

      The regressive nature of a one-time, point-of-purchase consumption tax would incentivize success. Contrary to current popular sentiments, it is not evil or bad to make success more desirable. It is essential to our future prosperity. Hidden, multi-layered taxation and the resultant compliance costs would become a thing of the past.

      • Darren Smith says:

        A national sales tax would not prevent the feds from taxing some goods and services differently from others. For example, food could have no tax while luxuries could be taxed at a very high rate. A flat federal sales tax would be ideal, so the government could stop picking winners and losers, but I would trade all of our federal and state income taxes for ANY sales taxes in a heartbeat.

    7. Our founders wrote that equal and uniform dispensation of the law was essential to self-governance. Anything else is tyranny because it is subject to the temporary whims of the few to control the many. Is this not what our tax code has become?

      The phrase “family values” has become the tired rhetoric of our politicians, Republican and Democrat alike. But this is too narrow a definition of morality. A moral and just government cannot engage in legal theft. It is obvious on a very basic level that when the force of law is used to take from one person to give to another who has no legal right to it, legal theft is taking place.

      Unfortunately, other than murder, the right to bear arms, and freedom of religion, we tend to back away from moral certitudes. We tolerate legal theft because that’s the way it has been for all of our lives. The income tax, however, did not exist for this nation’s first 130 years. A consumption tax returns us our original mechanism for collecting federal taxes. (Federalist Paper 21)

      • 2D Okie says:

        Excellent expression of justification for the FAIR TAX. However there, is no such thing as "legal theft" there is just theft which is what income tax is… if we are to be a MORAL society.

      • Joseph McKennan says:

        You points are well taken. I see lawyer ads on TV about how people with back taxes need to get a lawyer to defend them against the IRS. Whaaaaaaaa…t? I thought this was a constitutional republic.

        That is just half of my gripe. Now I get the impression that if you don't pay your taxes on time all you have to do is make sure a lawyer gets his/her cut and you can pay less!
        This mindset is what is wrong with our economy.

    8. Our founders wrote often that only a moral society can sustain a Republic. They knew that it is inherently immoral to employ the force of law to take from one and give to another.

      We need representatives who will have the moral integrity to accept nothing less than the repudiation of legal theft in all its variations. There is no greater issue threatening our personal freedom than the abomination of our current tax code. Like a cancer, it creeps into every facet of our lives, punishing success and rewarding failure.

      Why produce when it will only be taken from us? Why work when we can get it for free?

      • Paul says:

        And we no longer have either a moral society or a republic. No society has ever returned from the depth to which our nation has fallen. As obviously logical as your presentation is, there are now too many on the government dole to get support for doing away with the theft that supports nearly half of the dole. The other half is supported by counterfeit money printed by the "Federal" Reserve, a private company that is permitted to print money. Doing away with the IRS and the Federal Reserve would give our nation a rebirth of freedom but I don't see any way to make it happen when we have the best government that MONEY can buy.

    9. For most of the past 40 years of my life, I have worked three months out of every year for the government and this without the freedom to choose when I pay or how much I pay in relation to others. I want to leave my children a country where they earn and use what they labor for, give to charity what they can, and pay taxes on what they consume, not what they produce. Why can't the Heritage Foundation have the moral certitude to promote this?

      Thanks again for all you've done.. God Bless

    10. toledofan says:

      It's really ironic that what's good for the goose isn't good for the gander. I guess that at the end of the day we can say Obama has failed or maybe the real issue is education and someone needs to teach Obama about the cause and effects when you invest. When you deal with other peoples money it's just not acceptable to say oops, sorry, we didn't do our homework and lost lots of your retirement or 401K funds and for sure it's not ok to invest in a business because they supported your campaign.

      • Why not be arrogant as government is? You have a captured audience that doesn't have the right to say no. Do you expect any less really? The government doesn't fear going broke. They don't fear our opinion? Why not? Because we can't express it but every two years at the ballot box. This is why I brought up our method of taxation. It would force the government to live off of our prosperity. The more we prosper, the more we buy new retail. If the tax goes to high, people won't buy as much. If the taxes go too high, people will by more used than new http://www.fairtax.org

    11. Wildman says:

      Typical of all politicians, his staements. A lot of flowery stuff with no meat in the statements. Just smoking mirrors. Things I have noticed, no more man made global warming, it was a UN hoax, no more solar power, the money went to his political donors, they promptly went broke, and the donors recieved millions in lay off bonus's, don't hear much about wind mills either. So what is next? To bad the hot air they speak can't run vehicles, but that hot air could be the man made global warming. And that includes both parties.

    12. Frank says:

      Our government has become a Big Brother Police State. Totally out-of-control & Unconstitutional. I never thought I'd live to see this day. Either we revive the Constitution with a limited Federal Government with a balanced budget, return to our Constitutional liberties & stop being the world's policeman at our expense, or time to consider expatriation to a smaller, freer country. Many wealthy people have already expatriated to avoid onerous taxation & loss of liberties (among them, some of my financial advisors). Time for even the average American concerned with loss of their liberties & poor economic outlook here in America. Or, time to stay here but fight for your liberties once again by getting active politically & ensuring only small government, Constitution-loving politicians get elected. Sadly, Romney doesn't seem to be one of them & the GOP seems intent on going the way of the Whigs. There is little difference nowadays between the Establishment D & R Parties when you look below the image & what they've been up to for decades now.

    13. sam says:

      Mr.Brownfield for the fight you bring, wishing you success. Your a fighters fighter. Thanks

    14. thosepeskyfacts says:

      I never thought another human being could make former press secretary, Gibb, look articulate. Somehow Carney has accomplished that many times.

    15. Frank VanderSloot got where he is today by FREE INTER PRIZE He should not be put the President's
      bad guy's list

      FREE INTER PRIZE is what made us what we were Taking it away is destroying AMERICA.
      I AGREE WITH FRANK>>>>>>

    16. Charles says:

      I am so tired of this President and all of his liberal followers. It is not a Presidents or the government job to try and guarantee sucess using tax payer dollars and running up debt that could endanger our country. Our free market system works really well if there was a market for so called green energy, it would be booming with out Government interferance.

    17. none says:

      What is there to say beyond to state the obvious, our current administration is full of crooks and morons.

    18. Neal Bulman says:

      How do I post articles like the one at the top on facebook?

      • Hoping in Him says:

        Highlight the address string at the top of this or any web page, right-click and copy and then right-click and paste into the status box on your facebook page.

    19. Dennis Rathbourn says:

      Orwell hit the nail on the head. Oh so typical politician-speak.

    20. J E Houser says:

      The federal government, in the entire history of the United States, has never solved an economic or industrial problem. The entire history of the world has repeatedly demonstrated that growth and prosperity has, both only and repeatedly, been the result of competition of those unrestrained by a the hammer of a central government.

    21. Benton H Marder says:

      Recently, a friend suggested an essential guide to understanding the Beltway mentality. She re=reads 'Alice' from time to time. Yes, I do mean "Alice in Wonderland" and 'Through the Looking Glass". I add to this another work, Sebastian Brant's "Ship of Fools".

    22. glynnda says:

      Nice Mike, but where are the lawsuits for unequal treatment when doling out these billions? Who else is pursuing them that didn't get them because they didn't contribute to the right person? It's time to put these matters out in the public forum and into the courtroom.

      Also, we need to set a standard……no government contributions to private business…..the grants need to stop. If the company can't get funded on it's own or by loan, it should not exist.

      Glynnda

    23. Larry White says:

      Obama has mastered the political slush fund techniques.

      Not only has he directly compensated his bundlers with millions, oops, Billions; he has also brilliantly funded Union Payrolls and Union Dues with Tens of Billions of "Stimulus" money; $26 Billion in one check to save teacher's jobs…right before the last election! All with TAXPAYER MONEY.

      Heritage, please help us get the facts and get he facts out to voters and conservative politicians. The Obama Administration will become even more aggressive in this election.

      God Bless America

    24. I have never seen a group of more unqualified people in government,business,school or the playground.
      Misfits in Life find a way to be part of the democratic party.After they loose , the beat down needs to continue.
      Where is the Sargent at Arms in Congress.It is a totally useless position and it needs to be done away with.
      What goes on ,on the floor of congress is dispicable.Fines and sensoring should be handed out daily.

    25. Jeanne Stotler says:

      Listening to Jay Carney is worse than trying to get a story out of a three year old, he rambles and hems and haws, this just iritates me as I want to finish his sentences. How in the world did he ever get tis job?, he sure cannot carry on a rational sentence .

    26. We are indeed now 'blessed' with a presidential spokesman named Jay Carney whose only 'positive' attribute appears to be inane, rhetorical, misguided, mis-spoken masterbated utterances on behalf of the commander-in-chief. God help us if there is ever a real crisis that he needs to answer questions about.
      Good luck, America.

    27. T T Tony says:

      In other words, if you can't dazzle 'em with footwork, baffle 'em with BS.

    28. Mark Simmons says:

      I object to the term "crony capitalism". This gives capitalism a bad name and is anything but capitalism. This is crony socialism. Socialism is where the government both owns and regulates industry and that is exactly what is happening here!

    29. Jack Coleman says:

      Mike,
      You give them much more credit than I ever have. You state they sometimes have common sense. I have always thought they were hiding behind a door when that was passed out, and as far as reality I have always thought that was whatever the Lobbyists told them it was.

    30. Donald DaCosta says:

      Speaking of crony capitalism, Solyndra et. al. and now Tesla: http://autos.yahoo.com/news/the-death-list–cars-

    31. billy barney says:

      The Little Laddie from Time, Inc. might be a genius with pen & pencil, but he's a babbling buffoon in this job, And that's everyday.
      It's pretty clear to all who pay attention; astute, intelligent men and women are not welcome in The Oedipus Man's Administration…

    32. Docfreeman says:

      Carney reminds me of a Cockatoo that sounds like a parrot.

    33. tucanofulano says:

      obviously neither Obama nor his sock puppet in the press room have the foggiest notion what is involved in making an honest buck; and in this case making a buck honest is impossible

    34. Bob Wellston says:

      I find it interesting that Obama and his minions in the MSM talk about the people who lost their jobs when Bane took over thir companies, but no one talks about the people who lost their jobs when Obama took over GM and Chrysler and those others who lost their jobs because of failed public investments. Remember all of the dealerships that were shut down. They actually had clerks and mechanics and other people working there who lost their livelihoods so that the UAW could retain their high pensions. How about some articles about those people and some ads about those people still looking for work.

    35. Vinton Fry says:

      In your article titled “The White House Defends Public Equity” the author uses the term “crony capitalism.” Why do you continue to use the term “crony capitalism” as if capitalism is the problem? This is not the practice of capitalism but the practice of Keynesian economics. Isn’t it about time we got the terminology correct? Capitalism is not the problem. Keynesianism is as well as the Marxist political agenda tied to it. It seems that so many conservatives continue to pander to the main stream media by letting them set the terminology agenda. This muddled thinking gives the impression that capitalism is bad because it is the crony element in our economic problems. The real problem is a political ideology build around Marxist and Socialist Ideology and Keynesian economics.
      Thank you for the hard work you are doing to protect our Nation and it Constitution.

      Sincerely,
      Vinton Fry

      • 2D Okie says:

        RIGHT ON!! and "PROGRESSIVES"aren't!!! They are bigtime regressive, wanting to drive we the people back into serfdom.

    36. Blair Franconia, NH says:

      The problem with public equity? The Poster Child for Public Equity____Solyndra.

    37. I have read the respnse from the "mouthpiece for Obama" as usual — it makes no sense– daily double talk

    38. Mary A says:

      A very thorough article and expose on Obama's Public Equity fiasco surprisingly from WaPo.
      http://www.washingtonpost.com/opinions/forget-bai

    39. Mary A says:

      A very thorough article and expose on Obama's Public Equity fiasco surprisingly from WaPo.

    40. Joseph McKennan says:

      I read the press secretary's statement and wondered " What are you saying….. all those words and no coherent thought."
      I thought this administration was supposed to be so eloquent in its explanations.
      There is a saying, "evil men run when no one is chasing them."
      BHO can't seem to find a clone who can answer questions right off the cuff. I suppose we will have to wait a day or two for his explanation on what he REALLY meant to say.

      I am sure that by then nobody will remember what the question was and he will be off the hook.

    41. Chris says:

      Carney's response reminded me of the beauty pageant contestant that stammered around about kids in the US not being able to locate something on a map and then suddenly had a light bulb turn on but was waaaay off on the original question.

    42. Dean Palmer says:

      There are a million good reasons to impeach this Obama – and half the Democratic party as well – and toss their arses in prison for devastating the most successful economy and country the world has ever seen. This merely adds one more reason. At what point will the American People begin to realize that these wildly flagrant liberal government polities can never be successful? How far down must America fall into the black hole of financial oblivion before everyone wakes up and takes action? Once we've lost our country to greed and politics, there will be no way to rescue it. At that point it can never be restored. Like a cancer, at some critical point the disease metastasizes and devastates the entire body making any form of treatment utterly fail. We are very near this point, yet as the Titanic continued to sink, the band played on. Don't say I didn't warn you!

    43. Dave says:

      The problem with the speaking from the political arena is there is very little accountability being held by anyone. The press or the people. Signed the Keepers of Vista Republic

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