January 05, 2009

New Column: Are They All Democrats Now?

Barack Obama, itching to implement his gigantic stimulus package as soon as possible, is dangling the idea of combining his spending package with a tax cut in hopes of securing another kind of stimulus: Republican support for his package. Republicans should remember that when you polish manure, you still have manure.

Obama went to Capitol Hill Monday to promote his stimulus plan of between $675 billion and $775 billion. An estimated 40 percent of the package (between $270 billion and $310 billion) would consist of tax cuts.

Obama strategists say the proposed tax cuts are based on historical and empirical evidence of what works, not ideology. But despite his denials, Obama's intention to target the cuts to the "middle class" and exclude higher-income earners, whose stimulated activity has been shown to have the greatest economic impact, betrays his crippling bondage to ideology.

The lion's share of the relief would involve $500 tax cuts per individual or $1,000 per family for income earners and an equal amount in credits for those who qualify for the "earned-income" credit. But he would phase out those cuts and credits for households with incomes of $200,000 or more, which is inexplicable apart from ideology and class-warfare populism.

Also demonstrating his ideological motivations, Obama's plan envisions short-term relief via one-time tax credits or refunds rather than long-term changes to the tax code. As others have noted, long-term changes are far more effective at stimulating growth because producers and consumers look to the long term in making their investment, hiring and spending decisions.

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Posted by David Limbaugh at 04:28 PM | Printer Friendly

December 29, 2008

Biden's Bogus Feud with Cheney

If Vice President-elect Joe Biden were slightly less enamored with his own voice he might not confuse himself so often on issues that matter so much, such as his views of presidential and vice presidential authority.

We've all heard about Biden's feud with Vice President Dick Cheney over Cheney's supposed view of executive authority relative to the other branches of government and Cheney's view of the vice president's role.

These happen to be two separate issues. Whether the president encroaches on the constitutional authority of the other branches is a different issue from whether the vice president oversteps his bounds inside the executive branch, or in his limited role in the legislative branch.

The problem is that Biden conflates these issues. He can't seem to keep straight whether he's exercised about an overreaching executive branch or an overreaching vice president mostly inside that branch.

My guess is that he confuses the two issues because, like other Democrats and liberals, he sees Cheney as the real villain in both cases. He blames Cheney, Bush's presumed puppet master, for Bush's alleged executive power grabs and he blames Cheney for overstepping his bounds as vice president.

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Posted by David Limbaugh at 07:44 PM | Printer Friendly

December 22, 2008

New Column: Beware of Obama's Middle-Class Task Force

When you read reports that President-elect Obama is going to establish a "task force to assist middle-class families" and that incoming VP Joe Biden will be its point man, keep a very sharp eye on what's going on here. It's an appeal to form over substance designed to convince voters he cares so much that even if he fails, he should be lauded and, of course, re-elected.

Modern Democrats have perfected the art of political propaganda, as seen in their demonization of "the Bush economy" for most of Bush's two terms despite the mostly positive economic numbers during that period. My guess is that under President Obama, they'll seek to do the reverse, if necessary: wooing the public with constant overtures to "the middle class" designed to mollify it irrespective of actual economic conditions.

Analogous to a teacher "teaching to the test," when a teacher imparts information to students to help them score higher on college entrance exams as opposed to increasing their actual knowledge of the material, President Clinton mastered the art of governing to the polls.

He had an entire team working 24/7 on enhancing his image and eulogizing his policy agenda. It's true that their task was aided by a robust economy, but the Clinton "war room" was still undeniably powerful well beyond the elections.

How much more shocking it was, then, for the young neophyte to take the Clintons to school, especially in the organizational and grass-roots aspects of the campaign. It would have been no less amazing if one of Muhammad Ali's sparring partners, such as Jimmy Ellis, had knocked Ali out instead of being knocked out himself.

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Posted by David Limbaugh at 03:38 PM | Printer Friendly

December 18, 2008

Recapturing Supply-Side Coherence

It is widely assumed in conservative circles that Republicans, even under President Bush, pretty much had tax policy right but failed on the spending side. Unfortunately, there's more to it. If conservatives plan to recapture ascendancy on economic issues, they better come to a clearer understanding of supply-side theory. Then perhaps they can articulate it and recapture it as a powerful electoral weapon.

Even when history is on their side, Republicans seem to find a way not to capitalize on it and routinely forfeit the narrative to Democrats, who dwarf them in the communications department from sheer repetition, if nothing else.

The Reagan tax cuts were so phenomenally successful that it's amazing Democrats were able to recover politically as quickly as they did. Despite historical revision to the contrary, all income groups did much better under the Reagan cuts. Remarkably, a Treasury Department study showed that 86 percent of people in the lowest 20 percent of income earners in 1979 graduated into higher categories during the '80s.

The tax cuts skewered then prevailing Keynesian economic theory, producing sustained peacetime economic growth without inflation. The reductions in marginal-income- and capital-gains tax rates even increased revenues.

It doesn't matter how much we repeat this truism or how blue our faces become in the process; the relative deficit explosion during the Reagan years was not caused by the tax cuts but by increases in government spending. Yet Democrats succeeded in establishing the narrative that the tax cuts were at the expense of essential government services and that the cuts increased the deficit and the national debt, thus dubbing the '80s the decade of greed.

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Posted by David Limbaugh at 05:46 PM | Printer Friendly

December 15, 2008

What's in a Middle Name?

When I first heard that Barack Obama said he had decided to include his middle name, "Hussein," in his swearing-in ceremony, I wondered whether the satirical Web site ScrappleFace had tricked the mainstream media.

Surely, after Obama's acolytes scolded commentators for using Barack's Muslim-sounding middle name during the campaign, the president-elect himself wouldn't so quickly reverse course. But, in fact, he did.

In an exclusive interview with the Chicago Tribune, Obama said he'll use his full name in the ceremony like every other president.

I have no problem with that, as far as it goes. But Obama went further. He's not using his middle name simply because it's his middle name, but as part of a deliberate strategy to "reboot America's image" among the world's Muslims. He also plans to deliver a major speech in an Islamic capital, possibly within the first 100 days of his presidency.

Why, you might ask, is all this necessary?

Simple: because of President Bush's myriad sins against Muslims since 9/11. The Associated Press reports, as if imparting objective fact, "The U.S. image globally has taken a deep hit during President George W. Bush's two terms in office, primarily because of opposition to the U.S.-led invasion of Iraq, harsh interrogation of prisoners, the indefinite detention of terrorist suspects at Guantanamo Bay, Cuba, and mistreatment of inmates at the Abu Ghraib prison in Iraq."

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Posted by David Limbaugh at 06:46 PM | Printer Friendly

December 11, 2008

No More Bailouts

If our government's economic experts really knew what they were doing, they wouldn't be frenetically experimenting with the people's money, treating billions like nickels. They wouldn't be so hellbent on dampening expectations and instilling fear as if oblivious to the real impact of public psychology on the economy.

I'm just not buying their doomsaying anymore. Even if they're right and we do end up in a full-scale financial meltdown, at least it will be finite and America's best days will still be ahead of us. But if we don't stop this panic-driven government intervention madness now, the chances are we'll still face a major meltdown and pass the point of no return into the bottomless pit of socialism.

The auto bailout and future proposed gargantuan government interventions must be rejected.

Government bailout architects ominously warned that unless we adopted their original "$700 billion" bailout proposal to purchase distressed mortgage assets, we'd face catastrophic economic consequences rivaling or exceeding the Great Depression.

Just weeks later, these same architects betrayed their own warnings and said their do-or-die plan would not work after all. Buying the troubled assets wouldn't inject capital into the banks quickly enough, so instead the government would have to distribute the money directly to major financial institutions.

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Posted by David Limbaugh at 03:48 PM | Printer Friendly

December 08, 2008

Responding to the Relentless Liberal Tide

If there's one thing I've learned in my 55 years, it's that liberals are relentless and will win through sheer persistence if conservatives abandon the fight.

The incoming U.S. government stands poised to forever alter the balance between governmental power and individual liberties and to replace the free market economy with socialist planning.

And what do we hear from many conservatives? That we should be encouraged that President-elect Obama has announced certain key centrist appointees and that we should convince ourselves this means he will not pursue the agenda he plainly tells us he will pursue. Savvy liberals must be laughing themselves silly.

Pro-life forces have made inroads into the collective consciousness and against the abominable practice of abortion, and they've been gratified by the appointments of two strict constructionist justices in Roberts and Alito. That said, Americans have just elected the most life-hostile president in our history, who got a complete pass on social issues during the campaign and who might be in a position to appoint three or more liberal activist judges.

But what are many conservatives saying? That Republicans got trounced because of the Christian right's uncompromising positions on social issues. That analysis doesn't square in theory (the majority of Americans are not pro-choice) or in reality (social issues were on the backburner in the national election, and social conservatism triumphed in state ballot initiatives, even in the liberal California).

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Posted by David Limbaugh at 04:40 PM | Printer Friendly