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Bidenomics: Like Obama and FDR

As Biden is gaining closer to winning the upcoming election, his economic plan deserves more scrutiny. So far, Biden is clearly looking to Obama for his policy aspirations. Unfortunately, Obama was following FDR’s playbook to the detriment of our economy. Let’s take a look:

Obama’s policies resulted in the poorest recovery since the New Deal, just as FDR’s meddling only prolonged America’s longest depression ever. Obama followed FDR’s failed playbook – he raised taxes, over-regulated businesses, gave organized labor excessive power, instituted policies that discouraged people from working, and hurt international trade.

Firmly entrenched in Keynesian economics, Obama believed in government spending while wholeheartedly crowding out private spending; he substituted inefficient political and crony-based spending for free-market, give-the-public-what-they want spending.

This week in the WSJ, Jay Starkman issued a warning on Biden’s plans, in “Bidenomics May Repeat FDR’s Blunder.” He notes, “Today the U.S. economy is recovering from a great crash, as it was before Roosevelt’s tax onslaught. Unfortunately, Mr. Biden doesn’t seem to have learned the right lessons. Should he win in November, he proposes to cancel the Trump tax cuts, raising the top federal income-tax rate back to 39.6%, and raise the corporate income tax from 21% to 28%. He also promises to limit low capital-gains tax rates to the first $1 million in profits and extend the full Social Security tax to income above $400,000.” With Biden also promising to increase regulation and institute energy policy that will produce less energy at a much higher cost, danger is in the wind. 

Why go back to the policies that have so clearly failed us before.  After three years of robust economic activity during Trump’s administration before the onslaught of COVID, this country can neither risk nor afford Biden’s plans. 

Obama, Climate Change, and the DoE

Congress heard a report this week that evidenced interference by the Obama administration into Congressional process with regard to a piece of radiation legislation in 2014. The Administration appears to have used the Department of Energy to forward his particular climate change package while simultaneously remove opposing viewpoints and sour lawmakers on a certain bill that would possibly conflict with his agenda.

The Washington Free Beacon produced the overview; I have reprinted it below in its entirety so as to not leave out any pertinent details:

A new congressional investigation has determined that the Obama administration fired a top scientist and intimidated staff at the Department of Energy in order to further its climate change agenda, according to a new report that alleges the administration ordered top officials to obstruct Congress in order to forward this agenda.

Rep. Lamar Smith (R., Texas), chair of the House Committee on Science, Space, and Technology, released a wide-ranging report on Tuesday that shows how senior Obama administration officials retaliated against a leading scientist and plotted ways to block a congressional inquiry surrounding key research into the impact of radiation.

A top DoE scientist who liaised with Congress on the matter was fired by the Obama administration for being too forthright with lawmakers, according to the report, which provides an in-depth look at the White House’s efforts to ensure senior staffers toe the administration’s line.

The report also provides evidence that the Obama administration worked to kill legislation in order to ensure that it could receive full funding for its own hotly contested climate change agenda.

The report additionally discovered efforts by the Obama administration to censor the information given to Congress, interfering with the body’s ability to perform critical oversight work.

“Instead of providing the type of scientific information needed by Congress to legislate effectively, senior departmental officials sought to hide information, lobbied against legislation, and retaliated against a scientist for being forthcoming,” Smith said in a statement. “In this staff report based on lengthy record before the committee, much has been revealed about how senior level agency officials under the Obama administration retaliated against a scientist who did not follow the party line.”

“Moving forward, the department needs to overhaul its management practices to ensure that Congress is provided the information it requires to legislate and that federal employees and scientists who provide that information do so without fear of retribution,” Smith said.

The report goes into Congress’ efforts to regulate the Low Dose Radiation Research Program, or LDRRP, which sought to test the impact of radiation on human beings. The program, started in the 1990s, was meant to support research into waste cleanup and the impact of nuclear weapons.

In mid-2014, lawmakers introduced legislation, the Low Dose Radiation Act of 2014, to help regulate the program and minimize harmful side effects.

During an October 2014 briefing with senior DoE staff on the matter, lawmakers heard testimony from Dr. Noelle Metting, the radiation research program’s manager.

Less than a month later, lawmakers discovered that Obama administration officials had “removed Dr. Metting from federal service for allegedly providing too much information in response to questions posed by” Congress during the briefing, the report states.

Congressional investigators later determined that the administration’s “actions to remove Dr. Metting were, in part, retaliation against Dr. Metting because she refused to conform to the predetermined remarks and talking points designed by Management to undermine the advancement of” the 2014 radiation act.

Emails unearthed during the investigation “show a sequence of events leading to a premeditated scheme by senior DoE employees ‘to squash the prospects of Senate support’” for the radiation act, a move that lawmakers claim was meant to help advance President Obama’s own climate change goals.

“The committee has learned that one of DoE’s stated purposes for Dr. Metting’s removal from federal service was her failure to confine the discussion at the briefing to pre-approved talking points,” according to the report. “The committee has also established that DoE management … failed to exercise even a minimal standard of care to avoid chilling other agency scientists as a result of the retaliation against Dr. Metting for her refusal to censor information from Congress.”

The investigation concluded that “DoE placed its own priorities to further the president’s Climate Action Plan before its constitutional obligations to be candid with Congress,” the report states. “The DoE’s actions constitute a reckless and calculated attack on the legislative process itself, which undermines the power of Congress to legislate. The committee further concludes that DoE’s disregard for separation of powers is not limited to a small group of employees, but rather is an institutional problem that must be corrected by overhauling its management practices with respect to its relationship with the Congress.”

These moves by the administration were part of an effort to secure full funding for the president’s climate change agenda, the report claims.

“Instead of working to understand the value of the LDRRP for emergency situations, DoE Management engaged in a campaign to terminate research programs that could divert funds from the president’s Climate Action Plan,” the report states.

Congress is recommending a full overhaul of the DoE’s management structure in order to ensure this type of situation does not occur again.

Jay Cost on Obama: Disintegrating Coalitions

Jay Cost is one of my favorite writers these days, blending history and analysis in a straightforward tone. Here’s his take on why Clinton lost: 

“Political coalitions are tricky things to manage in the United States. Ours is a country of more than 320 million people but only two major political parties—so each side’s voting bloc tends to be unstable at the margins, where national elections are actually won and lost. It is hard to build a winning coalition, harder still to maintain it during the laborious process of governing, and hardest of all to hand it off to a designated successor. It takes a politician of the highest caliber—a Roosevelt, a Reagan—to accomplish all this.

As last week’s results clearly demonstrated, Barack Obama is not cut from such an Augustan cloth. The political coalition he built in 2008 burst apart in spectacular fashion. His successor will not be Hillary Clinton, his secretary of state, but Donald Trump, the man who accused him of being a foreigner.

No lame duck president has ever had to suffer such ignominy. If Obama were to quietly steal out of town on January 20, as John Adams and John Quincy Adams did upon their defeats, nobody could blame him. Even so, Obama’s coalition fell apart because he failed utterly to maintain it during his tenure.

For eight years, we have heard stories about Obama’s “coalition of the ascendant.” Single women, millennials, Latinos and Asians, gays and lesbians, and so on, drove Obama to a fantastic electoral victory in 2008 and would power the Democrats for a generation—or more—to come.

While these blocs were integral to Obama’s triumph in 2008, there were other, more humdrum factions as well—the typical ones that every Democratic politician, be he as cool as Obama or as boring as John Kerry, has to win over. The suburban women of Florida’s I-4 corridor. The blue-collar workers in Dubuque and Erie. The African Americans in Detroit and Milwaukee, who are always counted on to deliver an enormous haul for the party. These voters are not the stuff of highfalutin’ think pieces for liberal magazines, but they were nevertheless an essential part of Obama’s victory.

They abandoned his successor last week. Not altogether, of course—but enough to serve the Democrats a shocking defeat.

There had been warning signs from virtually the start of Obama’s tenure. He won a smashing victory in 2008 by sweeping the traditional swing states and adding new ones to the list—Colorado, Florida, Iowa, Michigan, Nevada, New Hampshire, North Carolina, Ohio, Pennsylvania, and Virginia. But voters in all these states signaled at some point over the last seven years that their loyalty was not unconditional. Starting with Bob McDonnell’s whopping victory in the Virginia gubernatorial race in 2009, then Scott Brown’s surprise Senate triumph in Massachusetts, and finally to the Tea Party wave of 2010—it was evident by the halfway point of Obama’s first term that personal affection for him did not necessarily translate to support for his policies or other Democrats. Then came 2012, in which the president was reelected with 3.6 million fewer votes than he received four years prior. The admonition was repeated in 2014, when the Republican wave that hit the House of Representatives in 2010 wiped the Democrats out of their Senate majority.

Obama’s response to these electoral setbacks was to pretend they did not happen. Again and again, he stubbornly refused to change course. When he lost his filibuster-proof Senate majority in 2010, he passed an unfinished version of Obamacare through the budget reconciliation process. When he and House speaker John Boehner were on the cusp of striking a grand bargain on taxes and entitlements in the summer of 2011, he insisted on additional tax hikes at the last minute, skunking the deal. When he won a narrow victory in 2012, he called for extensive gun control legislation, framing the debate in Manichean terms that alienated those Midwestern voters who had the gall to support him and the NRA simultaneously. When the Democrats lost the Senate in 2014, he enacted immigration reform through executive fiat and brokered a highly unpopular deal with Iran.

Last but not least, he handed off leadership of his party to Hillary Clinton. Weighed down by personal and professional issues, she was his opposite in almost every way. During the Democratic primary battle of 2008, she had been a useful foil for Obama, illustrating his point that it was time for a new approach to governance. Now, she was the heir apparent—as if his voters would not care either way. Turns out they did.

Much of the blame for last week’s defeat obviously belongs to Clinton, who was a terrible candidate. But one cannot overlook Obama’s responsibility in this epic debacle. He blessed Clinton’s candidacy early in the cycle, despite the fact that she was under investigation by the FBI. And for years prior, he had acted as though he could do as he wished and retain the loyalty of his voters.

He was wrong. Clinton dramatically underperformed with the white working-class in the Midwest. She did not receive sufficient margins from African Americans in the Rust Belt or the South. And though she had the noxious Trump as her opponent, she failed to make up for these setbacks with swing voters in places like suburban Charlotte or Philadelphia. Nor did she make many inroads with traditional GOP constituencies in Milwaukee and Grand Rapids, who had been turned off by the bombastic Republican in the primaries. Even the Latino vote disappointed, leaving Florida out of reach and Colorado surprisingly close. Only the Harry Reid “machine” in Nevada functioned as expected.

When Obama leaves the White House in two months, the Republican party will hold more public offices than at any point since the Great Depression. The president’s greatest political ambition will therefore go unrealized: He is not the 21st century’s Ronald Reagan; he is its Woodrow Wilson.

The 28th president was quite a bit like Obama, a cerebral type with unceasing confidence in his superior intellect and moral purity. But Wilson’s ambition to recast society in his own image outstripped his political acumen. Elected in a landslide in 1912, he only narrowly squeaked by in 1916. Four years later, his would-be successor lost to Warren Harding, one of the most unspectacular specimens ever to occupy the Oval Office. Wilson tarnished the reputation of progressivism so badly that the GOP would enjoy complete control over the government for the ensuing decade. It was Franklin Delano Roosevelt—a pragmatic man who lacked Wilson’s scholarly disposition but had an intuitive grasp of what the people expected of him—who would become modern liberalism’s hero.

Maybe some Democrat down the line will re-create Obama’s coalition and reshape it in a durable way. After all, Obama was on to something back in 2008. There are common interests among working-class whites in the Midwest, college kids, minority voters, and suburban women. Democrats have thought for a decade that this coalition was waiting to emerge. Not so, but a gifted politician could unite that group and build a coalition for the long haul. Such a leader would have to be more like FDR or Reagan than like Wilson—or Obama.”

With Obama, Debt and Taxes are Inevitable

I always like to periodically check in on what’s going on in the world of federal debt and federal tax collections. The good folks over at CNS News consistently report the figures that come out of the U.S. Treasury so we can periodically see how our federal finances are doing. Here’s the latest snapshot:

During the 90 full months President Barack Obama has completed serving in the White House—February 2009 through July 2016–the U.S. Treasury collected approximately $19,966,110,000,000 in tax revenues (in non-inflation-adjusted dollars), according to the Monthly Treasury Statements.

During those same 90 months, the federal debt rose from $10,632,005,246,736.97 to $19,427,694,579,786.64—an increase of $8,795,689,333,049.67.

In July, according to the Monthly Treasury Statement released today, the federal government took in $209,998,000,000 in taxes and spent $322,813,000,000—running a one-month deficit of $112,815,000,000.

So far in fiscal 2016, according the Treasury statement, the federal government has collected approximately $2,678,824,000,000 in taxes and spent approximately $3,192,487,000,000—running a deficit of $513,662,000,000 for the first ten months of the fiscal year.

Given that the Bureau of Labor Statistics has reported that there were 151,517,000 people employed in the United States in July, the $19,966,110,000,000 in taxes the Treasury has collected during Obama’s first 90 full months in office equals approximately $131,775 per worker.

The $8,795,689,333,049.67 in additional debt the federal government incurred during Obama’s first 90 full months in office equals approximately $58,051 per worker.

The Treasury only needs to pull in another $33.89 billion in taxes to reach the $20 trillion mark for Obama’s presidency. (The $19,966,110,000,000 the Treasury pulled in during the first 90 full months of Obama’s presidency equals approximately $221,845,666,666.67 per month).

During the first 90 full months George W. Bush was president (February 2001 through July 2008), according to the Monthly Treasury Statements, the Treasury collected approximately $16,048,182,000,000 in taxes.

(From February 2001 through January 2009, the Treasury collected $17,251,191,000,000 in taxes. Bush was inaugurated on Jan, 20, 2001 and left office on Jan. 20, 2009, when Obama was sworn in.)

The $16,048,182,000,000 in taxes the Treasury collected during Bush’s first 90 full months in office equaled approximately $110,273 for each of the 145,532,000 persons who had a job as of July 2008.

During the first 90 full months of George W. Bush’s presidency, the debt rose from $5,716,070,587,057.36 to $9,585,479,639,200.33—an increase of $3,869,409,052,142.97. That equaled approximately $26,588 in added debt for each of the 145,532,000 persons who had a job as July 2008.

Here, according to the numbers published in the Monthly Treasury Statements, are the total receipts the Treasury has brought during the 90 full months President Barack Obama has completed in office:

Feb. 2009-Sept. 2009: $1,330,887,000,000
Fiscal 2010: $2,161,728,000,000
Fiscal 2011: $2,302,495,000,000
Fiscal 2012: $2,449,093,000,000
Fiscal 2013: $2,774,011,000,000
Fiscal 2014: $3,020,371,000,000
Fiscal 2015: $3,248,701,000,000
Oct. 2015 – July 2016: $2,678,824,000,000
90 Month Total: $19,966,110,000,000

CBO Examines Taxing Drivers By the Mile As a Revenue Raiser

According to an economist at the Congressional Budget Office (CBO), the federal government should examine the question of taxing drivers by the mile as a means of raising higher revenue for highway programs.

According to the Washington Examiner, “Chad Shirley, CBO’s deputy assistant director for microeconomic studies, gave a presentation that says federal gas tax revenues are falling short of federal spending on highway programs. But to resolve that problem, Shirley didn’t propose less federal spending, and instead offered three suggestions.”

1) Charge drivers more through the implementation of a “vehicle-miles traveled charges.”
2) Charging them more when traffic is bad. Shirley calls that “congestion pricing.”
3) Charging tolls on “additional existing interstates.”

The idea of a “vehicle miles traveled tax,” or a “VMT” tax, was considered in 2011 in a bill that never came to fruition. That plan “foresaw the installation of equipment on people’s cars and trucks that would measure how far they drive, and the collection of taxes electronically through a reading of those devices at gas stations.”

Whether or not these new suggestions will be considered again remains to be seen. The CBO says that its three suggestions are not higher taxes or fees, but as an attempt to “make federal highway spending more productive for the economy.”

Such proposals are invasive of people’s privacy, and represent another ridiculous attempt at trying to regulate the behaviors of people.