Big Government is Stupid Government – Tea Party Nation

Big Government is Stupid Government – Tea Party Nation.

By Alan Caruba

Nothing enhances a president’s reputation than to be seen in the company of other world leaders and Obama will have an abundance of photo-ops as he meets in Ireland with the G8 to address the many woes of the world. Too bad they think he is a dunce.

Given the unrelenting headlines about the Obama administration, it is worth worrying that Big Government is Stupid Government. It is inherently a danger to freedom. Just ask anyone who ever lived under communism.

While there are many fine people in government, those at the top of the current roster seem to be a collection of the most incompetent, inept, naïve, ignorant, and uninformed morons to have ever gathered around that big table where the cabinet meets. If, in fact, they really do get together except for the occasional photo-op.

The last Secretary State and President-in-Waiting, Hillary Clinton, flew a million miles in the job, but no one can point to anything she actually accomplished and she, apparently, had no idea what was going on at State. The present Secretary, John Kerry, is convinced that global warming is the greatest threat to, well, everything and is still trying to get the Palestinians to agree to peace terms with Israel; something they have refused to do since it opened doors for business in 1948.

Eric Holder, the Attorney General, cannot seem to remember anything. Usually you expect a lawyer to keep a few facts in mind such as the contents of the U.S. Constitution, but Holder is an exception or, like Obama, he read it and didn’t like it.

Other than Valerie Jarrett, only the White House reporters seem to know the names of his closest advisors. Tim Carney, the spokesman for Obama, has carved out a place in history as the biggest, lying weasel to ever hold that job. Oh how I miss the beautiful and intelligent Dana Parino, Bush43’s spokesperson. Happily I get to see her on “The Five”, a Fox News daily gab fest.

After Rahm Emanuel left the job as Obama’s chief of staff to become the Mayor of Chicago, the city has turned into a killing ground the equal of downtown Baghdad.

Obama is utterly devoted to Big Government and, thanks to Obamacare, the IRS is trying to hire the equivalent of an armed forces division to administer it. The popularity of Obamacare, plus the scandals, currently is plunging to depths that even the pollsters are beginning to measure in single digits. The President’s numbers are reaching new lows as well.

A notable aspect of Big Government is the increasing size of various pieces of legislation such as the so-called immigration reform and the Common Core education bills. Beginning life as No Child Left Behind under Bush43, this latter bill is not likely to be reauthorized. Any piece of legislation that exceeds a thousand or more pages in a one-size-fits-all is doomed to failure.

At this writing, the House is getting ready to vote for a trillion-dollar food stamp and farm bill about which few Americans are even aware. It’s a huge giveaway for a nation that is essentially broke. As Congress gets close to its summer break, all manner of comparable mischief will occur. Recall that Obamacare was passed on Christmas Eve 2009!

For the same reason, the ever-expanding surveillance of everyone’s electronic communications comes with the built-in limitation that the more signals intelligence it gathers, the less likely it will produce any results, except after the next attack. The NSA employs tens of thousands of analysts to deal with all the “signent” is acquires and, other than that which focuses on places like Yemen, the rest is not likely to yield much of value.

A government big enough to access every phone call and email from 310 million Americans is also failed to take serious action when the Russians
warned that two jihadists were living in Boston.

The other aspect of Big Government is the way the Obama administration has enlarged the numbers of Americans receiving food stamps, disability payments, and other “free” stuff that is not free, but dependent on those who still have a job. Social Security and Medicare are barely solvent and Medicaid is bankrupting the states that must contribute to it.

According to the American Enterprise Institute, “The number of federal employees has risen under President Obama. There were 2,790,000 federal workers in January 2009 when the president took office, and now there are 2,804,000 workers. The fact is that there is no month during President Obama’s term when the federal workforce was smaller than it was in the first month of Mr. Obama’s presidency. The president took over in January 2009. Every month after January 2009 has seen more federal workers than were employed in January 2009.

It would be wrong to suggest that federal workers are not productive, but the sheer size of this workforce suggests that Big Government takes a lot of people out of the private sector and provides them with employment that comes with a multitude of perks that adds to the federal debt for which everyone must be taxed.

“A government big enough to give you everything you want, is big enough to take away everything you have,” is attributed to Thomas Jefferson, as is “Democracy will cease to exist when you take away from those who are willing to work and give to those who would not.” This was true in the 1700s and is true today.

With considerable foresight, the Founders wanted a central government that was intended to remain limited in size, scope, and power. The Department of Homeland Security—the hasty reaction to 9/11—has metastasized into an Orwellian giant that should, at the earliest moment possible, be disassembled into its component parts.

The nation would no doubt benefit from putting an end to the Environmental Protection Agency, the Department of Education, the government mortgage companies of Fannie Mae and Freddie Mac, and comparable entities that are mostly the result of government’s vast expansion in the latter half of the last century and this new one.

Term limits is another idea worth considering. I sometimes think that the longer a Senator or Representative stays in Congress, the more senile, incompetent, and indifferent they become to the voters.

© Alan Caruba, 2013

 

Auto Bailout Loss Could Exceed $70 Billion – Tea Party Nation

Auto Bailout Loss Could Exceed $70 Billion – Tea Party Nation.

Posted by Seton Motley

Note: This first appeared in Breitbart.com’s Big Government.

 Courtesy of the $83 billion auto bailout – on which we are already poised to lose more than $40 billion – We the Taxpayers are stuck with 26% stock ownership of General Motors (GM).

 Things could soon get much worse.

 Judge Set to Rule on Case That Could Reverse Auto Bailout

 A New York federal judge may rule imminently on a case that could reverse the General Motors bailout and send the company back into bankruptcy….

 At issue is a backroom deal hatched by GM to fulfill the Obama administration’s demand for a quick bankruptcy, draining the automaker of nearly all of its cash on hand and leaving it in worse shape than it was when it collapsed in 2009….

 On the eve of entering bankruptcy, the company cut a $367 million “lock-up agreement” with several major hedge funds to prevent GM Canada from failing. The agreement ensured that GM could spin-off its liabilities to “old GM,” while using a multi-billion dollar bailout to create a new company….

 “(Judge Robert Gerber) has made it very clear that he is greatly dissatisfied with the process,” one analyst told the Washington Free Beacon in October. “He’s basically implying that GM hid it from him and that reopening the sale is a possibility.”…

 “In this particular situation, there’s $1.3 billion in liabilities, but that’s just what’s officially back on the table if the court rules for old GM,” said a bankruptcy expert close to the negotiations. “If those go back on the table then everything could be back on the table and [new GM] would have to address them.”

 Those liabilities, which include old GM’s debt and product liabilities that pre-date bankruptcy, are valued at $30 billion, a sum that would wipe out the company’s $34.6 billion cash reserves.

 We may be on the verge of adding another $31.3 billionat least – to the auto bailout loss tally, pushing the total to over $70 billion.

 The reversal would cause GM’s stock to plummet even further.  And again, we own 26% of the mess – meaning we’d lose even more coin.

 And then there are the other, troublingly similar lawsuits.

 Spyker Sues GM for $3 Billion Over Saab Bankruptcy

Spyker claims that GM purposely sent Saab into bankruptcy by blocking a deal with a Chinese car manufacturer.

 And more lawsuits will follow should the entire bankruptcy be undone.  How many millions or billions in GM legal fees and potential damages will this cost?

“(I)f all the liabilities come back to roost, short that stock,” the bankruptcy expert said.

 We the Taxpayers wish we could.

 

Breaking News: Americans Won’t Pay $40,000 for a $17,000 Car – Tea Party Nation

Breaking News: Americans Won’t Pay $40,000 for a $17,000 Car – Tea Party Nation.

Posted by Seton Motley

Note: This first appeared in Breitbart.com’s Big Government.

 

From the So-Painfully-Obvious-We-Shouldn’t-Have-to-Run-This-Study Department:

Study: Electric-Cars Won’t Make a Big Impact Until Prices Fall

Shocker.  What are those sticker prices?

(T)he base price of a Toyota Prius comes in at $24,995 but the plug-in version starts at $32,795. The Chevrolet Volt starts at $39,995.

The $51 billion-bailed-out General Motors (GM) Volt is completely uncompetitive with its un-bailed-out electric/hybrid competition.

 

Heck – it isn’t even competitive with other Chevys.

A Little Bit of Chevy Volt in Chevy Cruze

 

The recent announcement of the $41,000 price tag on the Chevy Volt disappointed many fans—and spurred debate about the taxpayer dollars required to bring the plug-in hybrid to life.

 

But the new Chevrolet Cruze shows how General Motors is hedging its bets on the Volt’s high-cost components by installing them on a high-volume model.

The $40,000 Volt is basically a $17,000 Cruze – with a 500 lb., 25-mile range, eight-hour-to-charge battery.  Which is toxic when spent – and costs somewhere between $8,000 and $15,000 to replace.

 

And the American people aren’t buying?  Shocker.

 

But wait — it gets worse.

The Chevy Volt’s $89,000 production cost: A waste of money?

So the Volt is completely uncompetitive at $40,000 – and GM loses $49,000 on each one it makes.  “A waste of money?”  Not at all, President Bailout.

 

But wait – it gets worse.  As of the end of 2011:

Each Chevy Volt sold thus far may have as much as $250,000 in state and federal dollars in incentives behind it – a total of $3 billion altogether….

So the Volt has, by now, received well more than $3 billion in government subsidies.  To make the equivalent of a $17,000 car – that retails for $40,000 and costs $89,000 to make.

(T)he (electric/hybrid car) market only represents only 0.3 percent of total industry sales….

Billions well spent.

 

But wait – it gets worse.  We the Taxpayers own 26% of GM’s stock – and are poised to lose more than $40 billion on the auto bailout.

 

In no small part because GM – the company in which we are conscripted investors – is wasting tens of millions – and the Feds billions more – tilting at Volt windmills.

General Motors Is Headed For Bankruptcy — Again

Another shocker.

 

President Obama: Is This the ‘Private Sector…Doing Fine?’ – Tea Party Nation

President Obama: Is This the ‘Private Sector…Doing Fine?’ – Tea Party Nation.

Note: This first appeared in Breitbart.com’s Big Government.

 Posted by Seton Motley

President Barack Obama incessantly touts the alleged “success” of the $50 billion General Motors (GM) bailout, evidence to the contrary notwithstanding.

General Motors – The Government’s Warped Definition of ‘Success’

Much like the Obama Economy, General Motors’ numbers are tanking.  Earlier this week we had:

GM’s 2012 Sales Growth Only 2.5%

Outstanding.  And the failures continue to abound.

General Motors 3Q Profit Falls 14 Pct (from 3Q 2011)

Sound familiar?

2011 US GDP growth: 2.0%.

2012 US GDP growth (thus far): 1.77%.

Two percent is pathetic,  and the Obama Economy can’t manage to match it this year.

 

Are things now looking up for the economy?

Economic Outlook for 2012 Even Worse Than We Thought

Things are looking worse for the U.S. economy than even three months ago.

Apparently not.  How about for General Motors?

General Motors Is Headed For Bankruptcy — Again

Outstanding.

 

This all-things-failing-equally can’t be what President Obama has in mind, right?

Government Motors is What Obama Wants to Do to ‘Every Industry’

More than 23 million people are jobless or underemployed under Obama.

Report: Negative job growth under Obama

1,035,000 Construction Jobs Lost Under Obama

Tech (sector) layoffs hit 3-year high in first half of 2012; 260% m…

Obama closes more than 2,000 car dealerships; more than 100,000 let go

111 coal plants – more than 20% of US total – closed under Obama; m…

Government-land oil and gas drill permits down 36% under Obama.

Food stamp recipient number rises from 32 million to 47 million und…

Record 5.4 million join (Social Security) disability rolls under Ob…

Welfare spending jumps 32% during Obama’s presidency

Health care premiums rise $2,370 per family under Obama.

Gasoline prices double under Obama.

Obama: “The Private Sector Is Doing Fine”

Apparently it is what President Obama has in mind.

 

Government Motors vs Free Market Ford – Tea Party Nation

Government Motors vs Free Market Ford – Tea Party Nation.

Posted by Seton Motley

Note: This first appeared in Breitbart.com‘s Big Government.

 

A picture is worth a thousand words.  Here are several that tell the $82 billion auto bailout story a whole lot better than the Barack Obama Administration has.

 We have been told ad nauseum that the auto bailout was unavoidable – irrevocably necessary.  That without it, the entire American auto industry would collapse in a heap.

 Well, Ford demurred – they refused to take a government dime.

 So let us compare and contrast $50 Billion-Bailed-Out General Motors and Bailout-Free Ford.  And see what our $42 billion auto bailout loss (and counting) actually got us.

 Legend:

F = Ford (in blue)
GM = General Motors (in orange)

 Note:

“New GM” was borne out of bankruptcy in 2010, which is why their numbers pick up at that time.

 Charts From: YCharts.com and Google Finance.

 Revenue

 

 

Bailed-Out GM has had consistently higher revenue.  GM and Bailout-Free Ford track fairly evenly, with a between $4 and $4.5 billion (10%-12%) spread.

 But that’s revenue.  How did that translate into profits?

 Gross Profit Margin

 

 

Profit Margin

 

Net Income

 

 

Bailed-Out GM does worse in gross profit, and breaks about even in straight profit margin and net income.  (GM’s late 2011 spike was the result of the federal government making Government Motors purchases.)

 How are the shareholders doing?  After all, We the Taxpayers still own 500+ million GM shares – 26% of the company.  And we’re set to lose more than $14 billion – just on the GM stock with which we’re stuck.

 Stock Price

 

 

Bailout-Free Ford has been thoroughly, consistently better. 

 So, Bailout-Free Ford has in several key ways done just about as well – or better – than $50 Billion-Bailed-Out General Motors.

 So, again, the question is – why did we throw $82 billion down the auto bailout rat hole?

The Obama Phone: Just Another Part of the Welfare-State Empire – Tea Party Nation

 

The Obama Phone: Just Another Part of the Welfare-State Empire – Tea Party Nation.

Posted by Seton Motley

Note: This first appeared in Breitbart.com‘s Big Government.

 

Last week delivered us another nugget of YouTube gold.  A pro-President Barack Obama woman protester outside a Mitt Romney event – who may or may not have been an $11-an-hour-paid-to-be-there SEIU agitator – was asked why she supported the incumbent.

“Everybody in Cleveland low minority got Obama Phone.  Keep Obama in President, you know?  He gave us a phone, he’s going to do more.”  (Sic)

She was asked about how one acquires an Obama Phone.

“You sign up if you’re on food stamps, you’re on Social Security, you got no income, disability….”

Asked “What’s wrong with Romney again?” our interviewee shouted:

“Romney?  He sucks!  Bad!”

And who can forget the Obama Bucks guy?  And the woman who likes Obama “because he gives me stuff?”  And the woman who asserted “I won’t have to worry about putting gas in my car. I won’t have to worry about paying my mortgage. You know, if I help (Obama), he’s going to help me.”

 

All of which demonstrates well the daisy-chain aspect – and ultimate effect – of the Washington Welfare-State.

 

Not unlike the City-State Empires of the ancient world – Mesopotamia, Sparta, Athens – the Washington Welfare-State relentlessly conquers from the free market and the fifty respective states new territory and human chattel.

 

The Washington Welfare-State does so (exclusively) via the political, via Wars (on Poverty),  and (New) Deals,  and treaties (re)negotiated every two years – “Vote for me and I’ll give you even more free stuff.”

 

President Obama has exploded the welfare rolls – food stamps, unemployment (in large part by weakening the work requirement), Social Security disability, etc.  And adding people to these programs triggers their eligibility for a panoply of others.

 

Like Lifeline – which gives free cell phones and free service to, really, just about anyone.

(Democrat) Senator Claire McCaskill…—a millionaire many times over—could apply for a free cell phone, complete with monthly service, paid for by the federal government. From what McCaskill could tell, “you just had to check the box” saying you met the income requirements, submit the form, and collect the phone….

Like just about every other government program – it’s run phenomenally well.

A 2011 audit found that 269,000 wireless Lifeline subscribers were receiving free phones and monthly service from two or more carriers. Several websites have been created to promote “free” government cell phones, including the ”The Obama Cell Phone” website at ObamaPhone.net.

Like just about every other government program – it has grown exponentially under President Obama.

In 2008, there were 7.1 million Lifeline accounts nationwide. There are 12.5 million today….

(T)he program has swelled from $772 million in 2008 to $1.6 billion.

And that’s only just getting warmed up.

(Lifeline spending) would reach $3.3 billion by 2014 absent major reforms.

And Lifeline is but a part of the gi-normous boondoggle that is the Universal Service Fund (USF).  Is your cell phone bill ridiculous?  Check the taxes:

As of the third quarter of 2012, the USF fee, which changes quarterly, equals 15.7 percent of a telecom company’s interstate and end-user revenues….

And that huge percentage of our money is going up even and ever more absurdly higher.

Proposed contribution factor for fourth quarter 2012 is…17.4 percent.

So we are hurtling towards a 20% tax rate on our monthly cell phone bill – just by and for the Federal Government.  Which was an $8 billion total take in 2010 – and hurtling ever upward.

 

And for what?  Ever greater Lifeline spending.  And a new, completely illegal nightmare – .

(T)he Universal Service Fund (will fund) the Connect America Fund, the largest U.S. broadband infrastructure program ever established, which will use $45 billion over 10 years to extend broadband deployment throughout the country….

But that $45 billion is apparently not enough:

Obama Contemplates Internet Tax

To further over-fund the…a spread-the-wealth-around universal broadband connectivity program….

Not mentioned is the $7.2 billion of broadband “stimulus” tucked into the fatty, flabby folds of the 2009 $1 trillion “Stimulus” bill.  Which was an unmitigated disaster.

The Internet ‘Stimulus’-Just as Destructive as the Rest of the ‘Stimulus’

 

Yet Another Terrible Internet ‘Stimulus’ Project

 

Broadband Stimulus Projects Need Oversight, GAO Report Says

The General Accounting Office (GAO) issued that report in August 2010.  Did the Obama Administration do anything to address the myriad problems detailed therein?  Of course not.

GAO Finds Problems with Broadband Stimulus Efforts

That report came out in August 2012.

 

Two years later, exact same assessment of the utterly unaltered $7.2 billion broadband Internet spending mess.

 

And now the Obama Administration – massive expanders of the Federal Government Welfare-State – wants to spend $45 billion more.  Unexamined, unaccounted for – and in unaccountable, fiat fashion.

 

Extraordinary idea.

 

Executive Order: Obama’s Cyber Security Power Grab – Tea Party Nation

 

Executive Order: Obama’s Cyber Security Power Grab – Tea Party Nation.

Posted by Seton Motley

Note: This first appeared in Breitbart.com’s Big Government.

 

As we have oft noted, President Barack Obama is killing the Internet.

Bad policy after bad policy. Often illegally imposed. As a result, the Tech Sector – 1/6 of our nation’s economy, as big as health care – is hemorrhaging jobs.

Tech Layoffs Hit 3-year High in First Half of 2012

Everything the President is doing to the Web is lawless.

The last time Congress addressed Tech policy they intentionally left the ‘Net completely alone.  They authorized no one to regulate the Web in any way. So of course the Obama Administration has been in full-on regulatory Internet assault mode.

The objective of all this Administration is the same as its over-action in all sectors of the private economy – to make it untenable for all private interests, leaving voters stuck with the government as our sole provider.

 he Obama Administration continues its autocratic drive unabated. They are forcing successful cellular phone companies to allow their competitors access to their networks (read: property) at absurdly low government-mandated rates.

Which removes completely the incentive for anyone to invest in a network.  Why would you, when you can instead wait for someone else to spend the hundreds of billions of dollars to build it, and then avail yourself of government-mandated cheap ingress?

In other “light touch” regulation news, the Administration is contemplating an illegal Internet tax.

To further over-fund the 15.7% phone tax, an $8 billion-per-year spread-the-wealth-around universal broadband connectivity program that has been proposed.

And now the latest outstanding free market Administration mess:

White House Draft Cyber Order Promotes Voluntary Critical Infrastructure Protections

Only within the confines of the government (and the media) does an “order” promote “voluntary” actions on the part of the private sector.

The White House so far has failed to get a bill passed by both houses of Congress to improve the cybersecurity of the nation’s critical infrastructure, so it wants to take an alternative approach.

Ummm, no.  If you’ve “failed to get a bill passed by both houses of Congress” – you don’t have an alternative approach.  But that hasn’t stopped this Administration yet, so why should it now?

The administration has created a draft executive order detailing how, within its authority, it would improve the information assurance of the nation’s critical infrastructure, such as the power grid and financial industries.

The draft EO includes eight sections, including the requirement to develop a way for industry to submit threat and vulnerability data to the government.

“Within its authority?”  Again, the Administration doesn’t have any.  And who determines what constitutes “threat and vulnerability data” – the Feds?  They are certainly light years away from being legally able to force the industry to violate their customers’ privacy – and their contracts – and turn over our data to the government.

 Besides which, we need transparency FROM government – not transparency TO government.

90 days after the EO is signed by President Barack Obama, the cybersecurity council — led by the Homeland Security Department secretary — must develop a report to determine which agencies should regulate which parts of the critical infrastructure….

Under earlier cyber bills, DHS would take the lead in regulation, and that concerned some lawmakers and experts. It was a major sticking point in moving forward with a vote on a comprehensive bill.

I can’t imagine why placing “man-caused disaster” DHS Secretary Janet “The System Worked” Napolitano in charge of this huge panoply of private rights’ violations would be a “major sticking point” for some of our elected officials.

(A) National Security Council spokeswoman in an email statement (said) “We are not going to comment on ongoing internal deliberations.”

These are supposed to be external deliberations – conducted in Congress, and commented upon by We the People.

 This isn’t Constitutional republicanism – this is authoritarian rule by Obama fiat.

 The article goes on and on detailing many facets of the Administration’s totally illegal Cyber Security Executive Order.  It is wrong-headed, top-down and government-centric.  It violates or eviscerates private property rights and numerous privacy protections of We the People.

 A far better way is to – like with National Security – contract out to people who know what they’re doing.  The Defense Department doesn’t build bombers – Northrop Grumman does.

 Likewise, it would be far better to have the experts at Verizon, Comcast, Time Warner and the like handle Cyber Security.  Rather than having the at once dictatorial and incompetent Obama Administration – or any Administration – take the reins.

 And to arrive at said solution via the Constitutional deliberative process, with a bill passed by Congress and signed by the President.

 We must bring an end to these terrible power grabs – executed to impose terrible policy.

 

Government Motors is What Obama Wants to Do to ‘Every Industry’ – Tea Party Nation

 

Government Motors is What Obama Wants to Do to ‘Every Industry’ – Tea Party Nation.

Posted by Seton Motley

Note: This first appeared in Breitbart.com’s Big Government.

President Barack Obama on Thursday uttered the following utterly absurd thing:

“I want to (bailout) manufacturing jobs, not just in the auto industry, but in every industry.”

Even before President Obama dramatically bumped up the auto bailout to $82 billion, we were saying that this government-funded Crony Socialism model is what he has in mind for the entire once-private sector economy.  He’s just now openly asserting it.

 

So let’s take a look at the auto bailout nightmare mess – and marvel at what President Obama wishes to multiplicatively replicate.

 

(If some of the following sounds recently familiar, you must listen to gracious radio host-exemplar Mark Levin.)

 

  • During the bankruptcy process, President Obama illegally paid off the UAW first and in full – before secured bondholders who should have been made whole before anyone else got a dime.  Which was incredibly disruptive and destructive of the entire bond market.  Economic uncertainty, anyone?
  • Meanwhile, President Obama cut the pensions of non-union GM-subsidiary Delphi’s employees by up to 70%.
  • President Obama illegally carried forward through the bankruptcy the ridiculously exorbitant UAW contracts.  Which were a hay-yuge contributing factor to GM going under in the first place – and are again, predictably, helping to wreck the bottom line.
  • Why has the stock tanked so precipitously?  Because GM is no longer a for-profit car company – it is a Leftist ideological entity.  To wit:
  • We the Taxpayers pay $7,500 per Volt sold in bribe money – I mean incentive.  And in President Obama’s latest unanimously rejected budget he wanted to up that to $10,000 per.

 And so on, and so on, and….

 All of this slow-motion train wreck-litany – is President Obama’s vision for how we should from now on do all things economy.

 Because for this President, “success” doesn’t mean greater free market achievement – it means greater government control.

 

Taxpayers Set to Lose $30+ Billion on the Auto Bailout – Tea Party Nation

Taxpayers Set to Lose $30+ Billion on the Auto Bailout – Tea Party Nation.

Editor’s Note: This first appeared in Breitbart.com’s Big Government.


Your money being sucked down a black hole!

In 2009, President Obama finished handing GM and Chrysler $85 billion in bailout money and then…had them go through bankruptcy.

Which – as Romney and we Conservatives have pointed out – they could and should have done for free.

In late 2009, President Obama told us that we would make money on the auto bailout.

In late 2011, the Administration begrudgingly admitted that we’ll lose $23.6 billion.


That’s a “success?”

And – as with most things Obama Administration – their numbers are uber-fudged.

This is, after all, the Administration that as part of tracking the nearly $1 trillion in “successful” “stimulus” money created fake Congressional districts – in which they “created or saved” imaginary jobs.

The Administration’s $23.6 billion auto bailout loss number includes a $9.3 billion hit on the 500+ million GM stock shares We the People now own as a result of the bailout.

But that’s a fudge-y number.

Right now, we’re actually losing nearly $15 billion on our shares.  On a stock that  dropped by a third just after the bailout, and has basically flatlined ever since.

So that ups the auto bailout loss to about $30 billion.  At least.

Because, again, we’re having to take at face value the rest of the Obama Administration’s always highly irregular math.  On the GM side – and the Chrysler side.  A very difficult proposition indeed.

The total auto bailout loss is undoubtedly – probably dramatically – higher than $30 billion.  And counting.

Only the biggest of Big Government proponents can consider this titanic loss a “success.”

ANDREW BREITBART, YOU WERE RIGHT. BIG IS THE PROBLEM. – Tea Party Nation

English: Andrew Breitbart - Reminding us all t...

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ANDREW BREITBART, YOU WERE RIGHT. BIG IS THE PROBLEM. – Tea Party Nation.

Posted by USARogue

In the aftermath of the passing of one of America’s great defenders of freedom, Andrew Breitbart, we need to take a moment and reflect. His passion was exceptional, his vision undaunted. His energy must be our motivation. Outside of Breitbarttv.com and Breitbart.com his other sites were common in their message Big Hollywood, Big Government, Big Journalism and Big Peace. The message here was “Big” . He, as many of us also realize, understood that all of these things were part of the problem other than Big Peace. Big Peace cannot exist with the massive expansion of the others, especially Big Government.

Our government is out of control. A National Debt soon to reach $16.3 trillion with no end in sight is consuming the very fabric of our Republic. Unfunded Liabilities of $117 trillion are even more unimaginable.  In 2000 when Bush came into office there were 4.129 million non-uniformed employees, in 2008 there were 4.206 million non-uniformed employees. So, in the 8 years of the Bush administration they added a total of 77,000 employees. As of 2011 there are 4.443 million non-uniformed employees. So in the first 2 1/2 years of the Obama administration they have had a 237,000 employee increase. In 2010, federal civilian workers had an average wage of $83,679, according to data from the U.S. Bureau of Economic Analysis. By comparison, the average wage of the nation’s 101 million private-sector workers was $51,986. When benefits such as health care and pensions are included, the federal compensation advantage over private workers is even larger, according to the BEA data. In 2010, federal worker compensation averaged $126,141, or double the private-sector average of $62,757. How long can the private sector keep supporting the public sector at this rate?

Last summer we watched the pathetic battle of nit-wits between the GOBP (Good Ole Boys Party) and the Liberal/Progressive elitists about the debt ceiling. The drama was intense, the debate exhausting, the rhetoric fulminant, the results unfortunately were the same as always. We are burning through money even faster than was initially predicted. As the Bipartisan Policy Center study, released last Friday, now anticipates the nation will reach its $16.4 trillion debt limit as early as late November rather than mid 2013. This is due in part to the fact that the Congressional Budget Office (CBO) has determined corporate tax receipts are coming in substantially lower than anticipated. Imagine that, over 24 million Americans under/unemployed, our largest trading partner the European Union is in the throes of economic calamity, and the government forgot to calculate the revenue shortfall due to decreased sales.

We helped the GOBP retake the House in 2010. We sent them with a very simple mandate, STOP SPENDING! As we have embarrassingly watched, the party of Tammy Faye Boehner  and the criminals on the Left, have been unable to find anything that can be cut of substance to stop the tsunami-like spendathon our government has been on for decades. Interestingly, government auditors spent the past five years examining all federal programs and found that 22 percent (22%) of them, costing taxpayers a total of $123 billion annually, did not show any positive impact on the populations they serve. More than 1-in-5 of our massive federal programs are basically useless. We can just keep finding $123 billion to waste rather than eliminate these programs. This is appalling for two reasons. First, for the obvious reason that this massive bureaucracy still exists. Second, that it took auditors 5 (FIVE!) years to do the study. Anything that takes that long to just assess must be TOO BIG TO SUCCEED! In 1984 Reagan created a special commission called the “Private Sector Survey on Cost Control”, better known as the “Grace Commission”. This was a similar study and it took 3 years then to find out there were 963 different social programs. Amazingly the OMB estimated that only 250 programs existed. The commission found nearly 2,500 cost-cutting and revenue generating recommendations that could save the government almost $425 BILLION Dollars in the first 3 years. With complete incorporation the plan was reported to be able to save nearly $2 TRILLION Dollars by 1999. Not surprisingly over 90% of the recommendations were ignored by Congress. If ever there is a reason for “Sunset Clauses” being applied to each piece of legislation, this is it.

The vision that Andrew Breitbart had was for smaller government. The TEA Party was built on this same principle. His, and our, message is unified. Unfortunately we have a European Socialist President and a Marxist Democratic party followed closely by the dysfunctional establishment GOBP. What should be astonishing to everyone is a recent study done by the European Central Bank (ECB). Europe is in the midst of a massive fiscal crisis caused by too much government. As has been their and our compulsion, they just feel spending more borrowed money, rather than any austerity measures to reduce the size of government, is the solution. The study finds that government spending is unambiguously harmful to economic performance.

…we analyse a wide set of 108 countries composed of both developed and emerging and developing countries, using a long time span running from 1970-2008, and employing different proxies for government size… Our results show a significant negative effect of the size of government on growth. …Interestingly, government consumption is consistently detrimental to output growth irrespective of the country sample considered (OECD, emerging and developing countries).

Evidence shows that the problem is government spending, and that problem exists regardless of whether the budget is financed by taxes or borrowing. This underscores the fact that their, and our, policy makers fail to understand the distinction and erroneously focus on the symptom (deficits) and ignore the underlying disease (BIG GOVERNMENT). God Bless you Andrew Breitbart and TEA Party for your vision. This brings us to the recurrent insanity in government where one bad government policy is used to justify another bad government policy. The ECB study shows that the only good solution is to reduce the burden of the public sector on the private sector.

… economic progress is limited when government is zero percent of the economy (absence of rule of law, property rights, etc.), but also when it is closer to 100 percent (the law of diminishing returns operates in addition to, e.g., increased taxation required to finance the government’s growing burden – which has adverse effects on human economic behaviour, namely on consumption decisions).

The key here is that government is too big in the United States and other industrialized nations. Finally, the ECB study analyzed different budget process reforms.

…we use three indices constructed by the European Commission (overall rule index, expenditure rule index, and budget balance and debt rule index). …The former incorporates each index individually whereas the latter includes interacted terms between fiscal rules and government size proxies. Particularly under the total government expenditure and government spending specifications…we find statistically significant positive coefficients on the overall rule index and the expenditure rule index, meaning that having these fiscal numerical rules improves GDP growth for these set of EU countries.

WHEW! If this seems like a bunch of economic gibberish, that’s because it is. Basically what it says is that spending limits are better than balanced budget rules. This is important because it shows that rules focusing on deficits and debt are not as effective because it allows politicians to use them as an excuse to raise taxes. Basically, the simple solution is that government spending must grow slower than the private sector, or more simply, spending cannot exceed revenue. You and I live by this golden rule in our own lives, government MUST do the same.

Notice that none of the media have covered this study. A study this significant should be the main topic of discussion until the election. Of course the media will hush this up as it is antithetical to Obama’s class-warfare and tax-the-rich according to his “fair share” initiative. Republicans should be throwing this in the face of the Democrats over and over in an effort to promote the mandate we sent them with in 2010.

Rest in Peace Andrew Breitbart. Your Conservatism, passion and commitment will be truly missed. Our strongest remembrance of your effort is to simply mimic it.

Finally, we need to embrace these words:

“The two enemies of the people are criminals and government, so let us tie the second down with the chains of the Constitution so the second will not become the legalized version of the first.” – Thomas Jefferson

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