The Federal Reserve Is Robbing You

Posted by Jason | Posted in Economics | Posted on 05-01-2010

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I was reading a blog on Shay’s rebellion and big government on a blog called Right Condition. You should check out the whole article, but here is a paragraph that highlights how the federal reserve is robbing the middle class.

Whether you look at the debasement of the Roman currency or the systematic destruction of the Byzantine gold coin the result is always the same. Debasement of a civilization’s currency leads to the civilization’s demise as the population is systematically robbed while the ruling class grows richer. This is precisely what is happening in America today! If you are not convinced, play around with the inflation calculator. You will find just as an example a 30% inflation rate since 1999. Similarly in 1999 the median income was 42k, while in 2009 the median income stands just north of 46k. So while prices on average went up 30%, median incomes barely went up 10%. This is a systematic plunder of American wealth.

Think about the average household basically being robbed of 20% of their purchasing power. I love how the government keeps coming out with these low inflation numbers, but every citizens knows inflation has been through the roof since 2000. Gas prices are up over 100%, which is down substantially from it’s high. A bag of potato chips that used to cost a dollar is now three or four dollars. Utility bills eat up a larger percentage of your income. Housing prices went through the roof, and even though they have come down, they are still way above their 2000 level. On top of that, the government and the Fed are trying to inflate their way out of the mortgage crisis. Still, the Democrats stand around complaining about the wealth gap. Well, here is your wealth gap. It is expanded by the Federal Reserve.

Is there a modern day Shay on the horizon?

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Senate Passes Health-Care Bill

Posted by Jason | Posted in Health Care | Posted on 24-12-2009

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Merry Christmas America. How do you like being raped and pillaged for Christmas? Our government, once this is signed into law, has cut the final string to it’s founding principle of protecting individual rights. No longer are we individuals. We are now part of the “public”. Anything thing that can be construed as harmful to the “public health” will used against the individual. We are all only one NIH study away from losing any right the government chooses to take away. Guns are first.

The Senate approved sweeping health-overhaul legislation on Thursday, a landmark moment for White House-led efforts to expand insurance coverage to more than 30 million Americans.

via Senate Passes Sweeping Health-Care Bill – WSJ.com.

Just as a reminder this bill does nothing to fix the problems as I explained in my post on root causes.

Might be good to re-read my posts on real free market solutions.

Part 1

Part 2

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Health Care Reform – Democrats drop expanding Medicare

Posted by Jason | Posted in Government, Health Care | Posted on 15-12-2009

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Here’s a sliver of good news on the health care front.

Senate Democrats on Monday evening dropped a plan to expand Medicare, winning the support of moderates and the reluctant acquiescence of liberals, in another major step toward building enough support to pass a health-care overhaul.

The idea of letting people ages 55 to 64 buy into Medicare, announced just last week, had threatened to explode the Democrats’ hopes of getting a bill through the Senate when Sen. Joseph Lieberman came out against it.

via Democrats Drop Plan to Expand Medicare – WSJ.com.

While I don’t believe this prevents the government from create a disastrous government health care program, it is still good news. The problem now is the debate has already been framed, and it’s been framed by socialists. The debate is between health care reform and the status quo, and you know the status quo just means you hate people. The problem is government cannot reform the private sector. If the government was not involved in health care, reform would not be needed. Resources would be properly allocated, which would mean they would be allocated where they are needed the most at the least cost.

All this talk about health care reform by socialist pigs makes me sick. The only reform we need to fix health care is government reform. It needs to be reformed back into a limited government that protects liberty. That is all that needs done to fix most of our societal ills. The rest can be figured out by free people.

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Obama Pushes New Job Stimulus – WSJ.com

Posted by Jason | Posted in Government | Posted on 09-12-2009

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When will this nightmare called the Obama administration end? They never question that fact that they got it wrong. They always believe they just didn’t do enough yet. We have close to a 1$1.5 trillion deficit this year, and these idiots can’t stop thinking of ways to spend more money.

In a speech at the Brookings Institution, Mr. Obama avoided calling his jobs push a new stimulus plan. But White House officials acknowledged that the president was taking stimulus components that he believed worked best and extending or amplifying them.

Has anyone seen any part of the stimulus that worked and continues to work? Cash for Clunkers might have give a blip on the GDP chart, but it’s obvious it was not sustainable. Government stimulus in the form of spending never is.

These include putting an additional $50 billion toward infrastructure spending, ramping up Treasury Department lending to small businesses through the Troubled Asset Relief Program, extending tax credits for business investment and offering state and local governments a fresh lifeline.

Other ideas that weren’t in the February stimulus legislation include a tax credit that rewards companies for hiring workers and tax rebates for individuals who make their homes more energy efficient.

Additional wealth must be created in our country for hiring to take place. Infrastructure does not create wealth. Are you wealthier when you trade in an older car for a newer one? No, you still have a car, just like you did before.

Increased lending to small business isn’t going to help either if the economy remains in shambles. Who will want to borrow money when the future is so uncertain?

Tax credits don’t work in the long term. Only long term tax cuts work for ongoing growth. Are you going to change your long term habits for a one time handout? Neither is business. They will change habits if it’s a lasting change such as reduced taxes, just as you would change your habits with a pay increase.

Don’t even get me started on more state bailouts. It’s stealing money from responsible states and giving it to irresponsible states such as California. The responsible states have to pay for the over-the-top government benefits in other states. Would Texas please secede already.

Mr. Obama’s push comes as a partisan debate over the stimulus plan’s effectiveness heats up and Democrats grow increasingly worried about the political price of a stagnant job market. With a midterm election looming in 2010, Friday’s relatively hopeful employment reports didn’t much relieve the pressure, senior Democrats said.

And we wonder why our country is going bankrupt. Politicians try buying their re-elections. It’s all politics, and has nothing to do with what is best for the country.

Democratic aides expect two bills. The first would top $100 billion and would extend unemployment insurance, temporary food-stamp payment increases and subsidies for health-care purchases by the unemployed. That would likely be attached to a spending bill in coming weeks. The second, a jobs bill estimated at about $70 billion, would contain many of Mr. Obama’s initiatives and likely wouldn’t reach his desk until early next year.

Get ready for all the job creating from incentivizing unemployment. It seems like we extend unemployment almost every week now. What’s it up to, half your life?

The hiring tax credit may generate the most controversy. Mr. Obama campaigned on the idea last year, but Democrats abandoned it amid the stimulus debate. Employers, they worried, could fire workers and rehire them to claim the credit, or divide a full-time job into two part-time jobs, cut the wages and hours of one worker, then hire a new, part-time worker to claim the credit.

Ralph Braun, chief executive of Braun Corp. in Winamac, Ind., said a tax credit is meaningless for a producer like him. “If you’re just going out to hire someone just for a tax credit, what kind of job will you put them in that has any longevity to it?” said Mr. Braun, whose 730-employee company produces wheelchair lifts and other equipment. “You have to have a customer for that employee to serve — so I’m confused how a tax credit would stimulate anything.”

Still, there are executives who see merit to the idea. Ronald DeFeo, chief executive of Terex Corp. in Westport, Conn., would like to see such a credit targeted at recent college graduates. “If we had a tax incentive that paid for a third of [a recent college graduate's] wage for two years, then 10% for the next two years, it would be a way to encourage companies like mine to hire,” he said.

via Obama Pushes New Job Stimulus – WSJ.com.

I bet Ralph Braun’s company is much better ran than Ronald Defeo’s. Ralph is completely right. If there is no customer to serve, then there is no need for a new position. Ronald on the other hand thinks it makes good sense for the public to pay 1/3rd of two years wages and 10% for the third and forth year for new hires. Is he smoking crack? This is what he thinks is good for our country? I know he gets to save money for himself, but meanwhile that money has to come from somewhere. If that position doesn’t warrant paying the employee, then the position should not be created. It’s a sham, and only results in a lower standard of living for everyone else, well except for Ronald Defeo.

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Health Care Reform – Democrats Have An Agreement With No Republican Input

Posted by Jason | Posted in Health Care | Posted on 09-12-2009

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According to the Wall Street Journal, 10 Senate Democrats have decided the fate for all of us as far as far as health care insurance goes. You will buy what you are told, because after all you live in a democracy (once a republic).

WASHINGTON — Senior Senate Democrats reached tentative agreement Tuesday night to abandon the government-run insurance plan in their health-overhaul bill and to expand Medicare coverage to some people ages 55 to 64, clearing the most significant hurdle so far in getting a bill that can pass Congress.

So Democrats dropped the government-run insurance plan, but expanding a government run insurance plan? Considering our aging population and people living longer (for now anyways), it’s not hard to see that a majority of our country eventually falling under a government plan. Do you think they aren’t going to try to expand this further?

The agreement capped several days of high-stakes negotiations by a group of 10 Democratic senators — five moderates and five liberals. Senate Majority Leader Harry Reid (D., Nev.) had advanced a bill that would have had the government directly operate a health-insurance plan, while giving states the right to opt out.

I love this. In our supposed Republic, we are forcing 1/6th of our economy under government control because of  5 liberals and 5 moderates. Who’s to say they are moderate? I guess they are moderate socialists. Wow, that makes me feel better. Moderate socialists are the ones protecting our liberty, so you can sleep well tonight.

In place of that, the senators embraced a more limited proposal that would empower the government’s Office of Personnel Management to put in place a new low-cost national health plan, congressional aides said. The office already administers plans offered to federal employees and members of Congress. The new national plan would be run by nonprofit entities set up by the private sector, and would be available to the public on the new insurance exchanges that would be created under the bill

If no private insurers sign up with the Office of Personnel Management to offer a national plan, the office would be authorized to implement a direct government-run plan, an unlikely prospect, aides said.

Didn’t they say they got rid of the government option? Instead they are going to have the government setup national plans and have them ran by non-profits? Sure sounds the same to me, except more corruption. Who’s going to pick the non-profits? Hey, isn’t ACORN a non-profit?

So here is where the government run plan comes in. If no private insurers sign up for the government designed national plan, then the government will create the plan itself. Despite what “aides” say, I would say it’s likely that no private insurers will sign up. Look at what working with the government has done with the banks. You sign up with them, you are going to do what you arer told, and what you are told changes at their discretion. How can a private insurance company plan for the future under conditiosn like that? Even if private insurers do sign up, it is no different than other quasi-government institutions like Fannie Mae, Amtrack or the Post Office. They will be ran into the ground, and we’ll be paying for them anyways. The politicians will setup the rules, so they will not be ran as a private institution.

The arrangement is attractive to Democratic centrists who worry about the government’s growing footprint in the private market.

Can this sentence be any more disengenous? So called centrist are worried about the growing government footprint in the private market? They sure have a funny way of showing it. Let’s see, TARP, Government Motors, bailouts, stimulus bills, newspaper bailouts, and oh this massive ass health care takeover.

In a nod to Democratic liberals still intent on expanding coverage, the group agreed to a proposal that would open Medicare, the health-insurance program for the elderly, to Americans ages 55 to 64. The proposal would benefit an estimated two million to three million Americans who have difficulty obtaining coverage elsewhere, including those who have lost their jobs. People in the 55-to-64 group who already get health insurance through their employers would continue to do so under the proposal.

Republicans criticized the Democratic negotiations. “What’s becoming abundantly clear is that the majority will make any deal, agree to any terms, sign any dotted line that brings them closer to final passage of this terrible bill,” said Senate Minority Leader Mitch McConnell (R., Ky.).

Sen. John Barrasso (R., Wyo.) said expanding Medicare “is putting more people in a boat that’s already sinking.”

The American Medical Association said it opposes expanding Medicare because doctors face steep pay cuts under the program and many Medicare patients are struggling to find a doctor. Hospitals also said expanding Medicare and Medicaid is a bad idea.

“We want coverage — in the worst way — expanded, but both of these means are problematic for hospitals and physicians,” said Chip Kahn, president of the Federation of American Hospitals, which lobbies on behalf of for-profit hospitals. “It’s going to make it difficult to make it work.”

Well, I guess the AMA can go screw themselves now. They had to back the Democrats health care bill before, and what do you know, it’s come back to bite them in the ass. Should have heeded my warning about making a deal with the devil.

The legislation is designed to extend insurance coverage to tens of millions of Americans. It would create new tax subsidies to help low- and middle-income people comply with a mandate to purchase coverage.

It would also bar insurers from engaging in a range of practices, such as denying coverage because of pre-existing conditions, and Senate Democrats were considering adding to those restrictions.

Under discussion among Senate Democrats was a proposal that would require insurance companies to spend no less than 90% of the insurance premiums they take in on health services, effectively limiting how much they can reap in profit. The health bill the House passed last month contains a similar provision, though it sets the minimum at 85%.

Aides cautioned that the accord reached Tuesday could be reopened if the CBO identifies major problems. Moreover, other issues, such as proposals to control the rapid growth of health costs, may still need to be negotiated over the next few days.

But if Mr. Reid has his way, he could begin the process of shutting off debate late this week. That would set the stage for another test on the Senate floor early next week that will demonstrate whether he has 60 votes for the bill. Final passage could come late next week.

via Senators Strike Health Deal – WSJ.com.

The government take over plan is so obvious. Expand, expand and expand the government programs in place. Then restrict, regulate and starve private insurance out of existence. The so called moderates like Joe Lieberman know better. They are just trying to save face when they hand over our liberty.

This bill is going to pass, so I hope we are all ready for it. We can only hold out hope now for public outrage next year to the extent that we elect enough new congress people that will then overturn all these government takeovers. They will need a veto proof majority, which is not going to be easy. Hopefully, insurance premiums adjust quickly and people feel it in their pocketbooks. If insurance premiums reflect the new costs imposed, people will notice it. They will be pissed off, and they will not have the government options until 2013. Hopefully, that will drive enough people to the polls to elect some real politicians who believe in freedom.


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Obama Tyranny – EPA Regulates Carbon

Posted by Jason | Posted in Government | Posted on 08-12-2009

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Yesterday, the EPA ruled that carbon dioxide is a pollutant, which gives them power over our entire economy.

EPA Administrator Lisa Jackson said yesterday that her ruling that greenhouses gases are dangerous pollutants would “cement 2009′s place in history” as the moment when the U.S. began “seizing the opportunity of clean-energy reform.” She’s right that this is an historic decision, though not to her or the White House’s credit, and “seizing” is the right term. President Obama isn’t about to let a trifle like democratic consent impede his climate agenda.

With cap and trade blown apart in the Senate, the White House has chosen to impose taxes and regulation across the entire economy under clean-air laws that were written decades ago and were never meant to apply to carbon. With this doomsday machine activated, Mr. Obama hopes to accomplish what persuasion and debate among his own party manifestly cannot.

This reckless “endangerment finding” is a political ultimatum: The many Democrats wary of levelling huge new costs on their constituents must surrender, or else the EPA’s carbon police will inflict even worse consequences.

The gambit is also meant to coerce businesses, on the theory that they’ll beg for cap and trade once the command-and-control regulatory pain grows too acute—not to mention the extra bribes in the form of valuable carbon permits that Democrats, since you ask, are happy to dispense. Ms. Jackson appealed to “the science” and waved off any political implications, yet the formal finding was not coincidentally announced at the start of the U.N.’s Copenhagen climate conference (see above).

Still think you are free? Still think Obama isn’t a tyrant? The people and their representatives will either cave to his demands, or he will find ways to force compliance. This is nothing but a gun to the head of all of congress.

This ruling has been inevitable since at least April and we warned about it during Mr. Obama’s campaign, but its cynicism and willfulness still astonish. The political threat is so potent precisely because invoking a faulty interpretation of the 1970 Clean Air Act will expose hundreds of thousands of “major” sources of emissions that produce more than 250 tons of an air pollutant in a year to the EPA’s costly and onerous review process. This threshold might be reasonable for traditional “dirty” pollutants (such as NOX) but it makes no sense for ubiquitous carbon, which is the byproduct of almost all types of economic production.

The White House knows this, which is why earlier this fall Ms. Jackson announced a “tailoring rule” that limits this regulation to sources that emit more than 25,000 or more tons a year like coal-fired power plants and heavy manufacturing. Ms. Jackson claims this unilateral rewrite of a statute is a concession, but its real purpose is to dodge a political backlash while still preserving the EPA’s ability to threaten business and recalcitrant Democrats.

In order to avoid a huge backlash, they just willy nilly change the law? Go figure.

For now, this decision moves into the courts, and years if not decades of litigation. Yet the decision really is historic: The White House has opened a Pandora’s box that will be difficult to close, that is breathtakingly undemocratic, and that the country, if not liberal politicians, will come to regret.

via EPA Regulates Carbon as Dangerous Pollutant – WSJ.com.

If the media had any credibility, they’d be outraged about this. The supposed protectors of our freedom are too busy talking about the political calculations instead of explaining how the executive branch is oppressive and tyrannical. Thomas Jefferson is probably rolling in his grave.

We really only have one shot to avoid all of Obama’s edicts. Next year, we need to kick as many Democrats out of office as possible. While I don’t trust the Republicans with all branches right now, I do trust them with the legislative branch. They need a veto proof majority to reign in this oppressive government. Then we need to hold their feet to the fire to rewrite the Clean Air Act, prevent government health care, prevent cap n trade, and to start repealing back all laws that take away our freedoms. We cannot have our freedoms depending on limp wristed Democrats. Obama stops by Congress to bang some Democratic heads, and the next thing you know, we have lost more liberty.

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The dependent class by Glen Meakem

Posted by Jason | Posted in Government | Posted on 07-12-2009

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Local legend, Glen Meakem,  writes an article in the Pittsburgh Tribune Review about the comparison to what we have spent on wars as compared to entitlements.

Since the beginning of President Lyndon Johnson’s “War on Poverty” in 1964, American taxpayers have spent $16 trillion (in inflation-adjusted 2008 dollars) on support programs for low-income people.

In contrast, American taxpayers have spent a total of $6 trillion (again in 2008 inflation-adjusted dollars) on all of America’s wars combined.

In return for the $6 trillion America invested in wars, we earned individual and national liberty, an end to slavery, a unified country across the North American continent, victory over multiple totalitarian tyrants and a more secure world.

But what have we earned in return for our $16 trillion investment in poverty programs?

Considering where our current national debt sits at, it is not hard to see that we would not have any debt without the entitlement programs. It would be my guess as well, that we wouldn’t have anywhere near the tax level we have, the government control over out lives, or our current vulnerability (economic and currency collapse) that can be exposed by China any time they choose.

In 1964, there were approximately 36 million people in America receiving aid. By 2007, that number had increased to 39 million. And the amount we are spending per person — in inflation-adjusted 2007 dollars — increased from $1,516 in 1964 to $16,840.

Under President Obama’s policies, by 2014 American taxpayers will be spending $1 trillion per year on welfare programs.

Today, people on government assistance in America receive free cash, food, housing, medical care and even cell phones. The standard of living of America’s poor has increased dramatically since 1964. But family breakdown, crime and dependency have exploded.

In 1964, only 7 percent of American children were born into single-parent homes. Today, 40 percent are born to unwed mothers. Children raised without their biological fathers living in their homes are much more likely to be poor and abused than children raised by their mom and dad. This is true across all racial and ethnic groups.

While I don’t think this is completely the fault of welfare, there is no doubt the destruction of the black family has been caused by welfare programs, specifically the incentivization of having more children to receive more money.

According to the U.S. Census Bureau, 64 percent of children with unmarried parents and 31 percent of children with divorced parents grow up in poverty. But only 8.4 percent of children in two-parent families grow up poor.

Taxpayer-funded welfare in America is marketed by liberals as a “safety net.” But in reality it has become a multigeneration way of life.

I wouldn’t call it a way of life. It is imprisonment. You are imprisoned in your government squalor, and you are punished by any action you take to get out of it.

We need all American adults of able mind and body to contribute to our society by working (inside or outside the home), supporting their own families, and raising their own children. More women and men must step to the plate by getting and staying married.

In the coming years, once conservatives regain control of our government, we must enact policies that enable American adults to take responsibility for their own futures and their own children. We can afford the time and money to win “a war of necessity.” What we cannot afford, what is truly unsustainable, is our growing culture of dependence.

via The dependent class – Pittsburgh Tribune-Review.

I agree with Glen’s general article, but this is where conservatives start heading in the wrong direction. We do not need to “enact policies that enable American adults to take responsibility for their own futures and their own children.” All we need to do is take away the incentives of not taking responsibility for you and your children. To do that, we should set a path to end all entitlement programs. I know we couldn’t do it cold turkey, but we should set a plan to do it over the next decade. We should make people understand that no one owes them anything, and that they will need to take care of themselves and their families. Families, neighors, and churches will pick up the slack for those who can’t fend for themselves. This is how it used to be done, and people were much better off.

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Obama Brings Big Pharma Into The Family

Posted by Jason | Posted in Global Warming, Health Care | Posted on 27-11-2009

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I’m not saying we are a fascist nation yet, but we are moving closer and closer. Obama’s dealings are looking more and more like Don Corleone. Making an offer they can’t refuse, Big Pharma is falling in line.

In June, the Pharmaceutical Research and Manufacturers of America sealed a deal with the White House and Senate Finance Chairman Max Baucus promising to contribute $80 billion in lower drug costs over the next decade to ObamaCare, plus a multimillion-dollar TV ad campaign. In return they were to be spared from price controls and the reimportation of cheaper foreign drugs.

To hell with the people. Obama and Big Pharma are going to prevent importation of drugs from other countries, which would help drive costs down. In a free market, drug companies would not be able to charge one price to foreign consumers and another, higher price to American consumers. American consumers are subsidizing the research and development, so the rest of the world gets the benefit without the cost. In Corleone fashion Obama threatens price controls (death to your business) to Big Pharma, or they can be a team player and benefit like the rest of those who fall in line with “the family”.

The pharma lobby was unfazed. “Despite the shortcomings in the House legislation, we remain completely committed to helping the President and Congress pass comprehensive health care reform this year,” a senior vice president said in a statement. “This is a three-act play and a good critic doesn’t write a review after the opening scenes.”

Why would pharma be fazed, when the Don gives them his word that they’ll be taken care of?

So how has the industry responded? More or less as Lenin predicted. Big Pharma is now running ads against Joe Lieberman, saying his threat to torpedo the Senate bill could cause drug prices to rise by 20%. It is also funding a campaign that targets the fence-sitters Ben Nelson, Mary Landrieu and Blanche Lincoln.

So after we’ve been told how evil Big Pharma is, how they only care about profits, how they careless if you live or die, and how they hold a gun to your head to make you buy their product, we are now supposed to believe they are looking out for the public, and those who stand against government health care are now the bad ones. Oh, how a little threat from the White House can change things.

via Big Pharma Sells Out on Health Care – WSJ.com.

Now we are supposed to believe that Big Pharma is actually giving something up to the benefit of all of us. Do you really believe they are doing something that isn’t in their best interest? This will lock out imported drugs, preventing price competition. It will prevent smaller drug companies from entering the market, thus preventing competition. It also allows the government more control over the drug business. Once Big Pharma enter the family, they can never leave.

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Another Responsibility Shirking Government Panel

Posted by Jason | Posted in Government | Posted on 25-11-2009

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Some in Congress are calling for a bi-partisan panel on ways to cut the deficit. As you can imagine, I’m laughing my butt off right now. Can you imagine telling your spouse you  need to get an outside advisor to help you figure out why you are getting further into debt as you go out and buy a bunch of stuff you don’t need on your credit cards?

By JONATHAN WEISMAN and JOHN D. MCKINNON

WASHINGTON — The White House is considering a bipartisan commission to tackle the nation’s swelling deficit, as it seeks to show resolve on a problem that threatens its broader agenda.

Top White House officials, including budget director Peter Orszag, met Tuesday with Senate Budget Committee Chairman Sen. Kent Conrad to discuss establishing such a commission, which has been pushed by Mr. Conrad, a North Dakota Democrat, and his Republican counterpart on the committee, Sen. Judd Gregg of New Hampshire.

Chuck Marr, a budget aide to the Democrats’ former Senate Majority Leader Tom Daschle, said some kind of commission or budget summit could be the only way to bring Republicans into the decision making in the hopes of generating support for cutting cherished programs or raising taxes.

So now the Democrats want to bring in Republicans to support cutting cherished programs. Isn’t this as they are about to pass a huge new program that isn’t supported by Republicans?

But House Speaker Nancy Pelosi (D, Calif.) and senior Democrats such as House Appropriations Committee Chairman David Obey of Wisconsin have vociferously opposed delegating tough decisions to outside panels or commissions.

Taking concrete steps to cut spending and raise taxes, always politically difficult, has become even harder given the U.S. economy’s weakened condition. With projected deficits averaging more than 5% of gross domestic product over the next decade, the enormity of the task makes it more daunting. So does the looming 2010 election, when Democrats face the possibility of big losses.

via White House Weighs New Panel to Tackle Deficit – WSJ.com.

Holy crap! Who would have thought I would ever agree with Nancy Pelosi. I better reconsider my belief. I was under the impression that we elect these idiots to make the tough decisions. I didn’t think we elected them to create panels anytime things are politically tough to do. They say it’s politically difficult, but yet it seems people on all sides are complaining about the deficit. The only difference seems to be where each side thinks the cuts should come from. I have a great idea that will solve this. Cut everything. Pass legislation that will move towards the end of medicare, social security, etc while protecting those who are on it or will be on it shortly. Young people know they will not get any of these benefits, so quit robbing them to pay for a failing system. For the left, shut some damn bases down around the world. Do we really need the cost of bases in Germany, Japan, South Korea, etc?

Was that hard? Do we really need a commission to make a report that probably wouldn’t include common sense ideas anyway? Now that this has been put out there, congress can use it. They don’t even have to pay me. Well, maybe they could let me not pay taxes for a few years.

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Race To The Top?

Posted by Jason | Posted in Education, Government | Posted on 25-11-2009

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There has been a lot of buzz about Obama’s Race to the Top program to improve public education. Currently, the Education Secretary Arne Duncan, Newt Gingrich and Rev. Al Sharpton are traveling the country together to promote the program.In this morning’s Wall Street Journal, former congressman Harold E. Ford Jr, a former IBM Chairman and a founder of The Broad Foundations wrote an article calling for accountability for President Obama.

By HAROLD E. FORD JR., LOUIS V. GERSTNER JR. AND ELI BROAD

For decades, policy makers have talked about significantly improving public education. The problem has been clear: one-third of public school children fail to graduate, there are embarrassing achievement gaps between middle-class children and poor and minority children, and the gap between our students and those in other countries threatens to undermine our economic competitiveness. Yet for the better part of a quarter century, urgent calls for change have seldom translated into improved public schools.

Now, however, President Barack Obama has launched “Race to the Top,” a competition that is parceling out $4.35 billion in new education funding to states that are committed to real reform. This program offers us an opportunity to finally move the ball forward.

To that end Mr. Obama and Education Secretary Arne Duncan are pushing states toward meaningful change. Mr. Duncan has even stumped for reform alongside former Republican House Speaker Newt Gingrich. Yet the administration must continue to hang tough on two critical issues: performance standards and competition.

First, I must say Newt Gingrich in pursuit of trying to be bipartisan has become a stooge of the left. If he thinks giving his support is going to get any real reforms, he’s become Charlie Brown hoping Lucy won’t move the ball this time. What’s worse is no one will no if he doesn’t agree with the ultimate outcome, but his name will be used for what will be called a “bipartisan effort”.

Already the administration is being pressured to dilute the program’s requirement that states adopt performance pay for teachers and to weaken its support for charter schools. If the president does not remain firm on standards, the whole endeavor will be just another example of great rhetoric and poor reform.

Competition among the states is also vital to reform. The administration is resisting the temptation to award funds to as many states as possible. And that’s good. To be effective, Race to the Top funds cannot become a democratic handout. Competition brings out the best performance. That’s true in athletics and in business, and it’s true in education.

Wow, all the sudden liberals realize competition among states is vital to reform, and competition is what brings out the best results? Who said progress isn’t being made. If they now realize this, can we make more moves back towards federalism, in which we had states competiting? Better yet, how about we get the federal government out of education altogether? How can you have competition when the government always promotes one size fits all policy on all states? Can we remove much of the federal laws and allow states to compete for the best standards of living? Citizens can then again vote with their feet. When the federal government creates national laws, citizens cannot hold states accountable. It doesn’t matter where you go, you still have to deal with the federal law. Your only choice is to leave the country, which ultimately harms our country.

The old way of doing business would be to spread around the money so no one could be held accountable. The new approach is to give governors authority and responsibility, and then hold them accountable for results.

For decades, adult interests have been at the forefront of public education. Reform has been derailed by adults who wanted to protect the status quo and enjoy lifelong benefits. This time the focus will be on learning in the classroom. What’s important is that the administration is demanding that every child receive an education that prepares him or her for college or for work. Without that we will continue to be sidetracked by insignificant issues.

Again wow, some truth from these guys. Ok, so now I must ask if we know this, then why aren’t we redoing all the federal dollars? Why are we continuing to spread money around?  According to the Department of Education’s website here is how much money they are spreading around with no accountability.

ED currently administers a budget of $62.6 billion in regular FY 2009 discretionary appropriations and $96.8 billion in discretionary funding provided under the American Recovery and Reinvestment Act of 2009

via U.S. Department of Education Budget Office.

Wow, imagine what we could do if we actually focused over $150 billion on the classroom? Instead you have teacher’s unions setting up life long cushy jobs and retirement plans that private sector workers could only dream about.

States that have the track record and leadership in place to implement Mr. Obama’s aggressive reform menu—of enforcing rigorous academic standards, creating data systems that track individual student performance, ensuring teacher quality and effectiveness, and turning around failing schools—deserve the funds to show that our public schools can again lead the world.

We have yet to prove, on a systemic basis, that we can dramatically improve America’s public schools. Race to the Top is a chance to start small, hold states accountable, and expand proven reforms to the rest of the country.

via Harold E. Ford Jr., Louis V. Gerstner Jr.,And Eli Broad: Race to the Top in Education – WSJ.com.

Ok, here is the root of the problem. You are rewarded based on your record of implementing “Mr. Obama’s agressive reform menu”. The problem is the whole damn thing is captive to politics. Assume this policy improves results. After Obama is replaced, you then have to worry about who’s menu is next? I’m not saying Obama’s menu is good, because I don’t know what it is. The problem is you hold the carrots way above where the work actually takes place. The further you get away from the end participants, the harder it is for you to dictate good policy and the harder it is to know what’s working.

If you want real reform, the federal government should get out of education. Governors should then open education to all providers public and private. Parents should be able to take either their own taxes or their allocation of taxes per student to any school they want. This would generate massive competition and a massive improvement in the education of children in this country. Even the writers of this article admit that competition is what generates results. Are they advocating only a little competition? Don’t they want spectacular results, or are they too afraid they’d loss their political power?

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