Saturday reading assignment

Christina Romer, Chairwoman of President Barack Obama's Council of Economic Advisers, makes the case for Spendulus 2009 and beyond. You can read it here.

She makes three main points. First, she says it's okay that we can't measure the plan's results:

"The first issue is what it would mean for the policy to work. The President gave a very concrete metric: he wanted a program that would raise employment relative to what it would be in the absence of stimulus by 3 to 4 million by the end of 2010."

So the plan is essentially to start with an unknown (national employment without government stimulus), add 3 or 4 million to it, and declare victory. Nice jobs plan.

Second, she says that if we assume stimulus will create "or save" jobs then it's okay to go ahead and assume the government will inflate the economy into another comfortable bubble.

"When people are employed and buying things, loan defaults fall and asset prices are likely to rise. Both of these developments would surely be helpful to stressed financial institutions. This is, I believe, a key lesson of the Great Depression. In the Depression, the end of deflation, renewed optimism, and increased employment and output were as crucial to the recovery of the financial system as the more direct actions taken to stabilize banks. Thus, real and financial recovery reinforced each other. So, fiscal policy to raise employment may help to restart lending and in that way generate a more durable recovery."

Finally, Romer offers as proof that the city and state bailout is working the fact that the money is already being spent.

"And when, a week after the bill is signed, we see my home state of California raising taxes and cutting spending by more than the amount of the relief the package provides, it certainly doesn’t feel like we’ve accomplishing anything. But we have. States have balanced budget requirements. In the absence of the relief provided in the package, the best case is that their spending cuts and tax increases would be even larger, and the worst case is that they would be unable to pay their bills at all. The fact that states are already changing their budgets, and are factoring in the funds from the package in doing so, is a sign that this portion of the package is timely and effective."

As scary as it is that this pitiful rationale was sufficient to ram massive pork spending through Congress, what's next will be even worse. That comes when taxpayers start buying government health insurance for 48 million people while being promised that doing so will generate "slowing health care costs."

What you already knew about Jim Bunning

National Journal's Congressional Conservative/Liberal ratings are out for the 2008 session. Sen. Jim Bunning leads the way for the Kentucky delegation, coming in 9th most conservative in the Senate. Sen. Mitch McConnell was 15th.

In the House were Rep. Geoff Davis #48, Rep. Ron Lews #75, Rep. Hal Rogers #102, Rep. Ed Whitfield #121, Rep. Ben Chandler #230, and Rep. John Yarmuth #323.

Beshear's "Weekend at Bernie's" policy

Looks like Gov. Beshear sat around all week trying to think of something to make a YouTube video about and could only manage to re-float a flat, two week old trial balloon.

Now you see them, now you don't

Tuesday night, President Barack Obama said this:

"But let me perfectly clear, because I know you’ll hear the same old claims that rolling back these tax breaks means a massive tax increase on the American people: if your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime."

Friday morning, Stateline.org reports this:

"On climate change, the administration figures the federal government will collect $646 billion between 2012 and 2019 for carbon credits. That plan assumes Congress would be able to pass a nationwide “cap-and-trade” system quickly, likely by the end of this year. Obama cabinet officials told governors last weekend they hope Congress passes a law by this summer."

"The nationwide limits on carbon dioxide pollution would apply to all sources of the problem, including cars and trucks."

I didn't see Obama deliver the "one single dime" line on television. Was he wagging his finger?

But maybe he is going to lean on the "see your taxes increased" as justification for hidden costs of the cap-and-trade (or cap-and-tax) scheme.

Ron Paul's son may run for Senate from KY

Congressman Ron Paul's son Rand is going to run for the U.S. Senate seat currently held by Sen. Jim Bunning if Bunning ultimately decides not to run, he said Thursday night.

"We will need a conservative to run against that liberal David Williams," Dr. Paul, 46, a Bowling Green opthamologist, said.

"Bunning has been treated unfairly," he said. "It's been his finest hour within the last year or so with his votes on the bailouts."

"David Williams has given up the ghost on the budget. He didn't even put up a fight on raising taxes."

Welcome KY Politics readers!
Welcome Daily Paul readers!
Welcome Ron Paul Forums readers!

Stop feeding them...

... and the Left turns to eating each other.

New York Times columnist Paul Krugman isn't happy with the bank bailouts that the rest of us aren't happy with either:

"Obama and Geithner say things like,"
"If you underestimate the problem; if you do too little, too late; if you don’t move aggressively enough; if you are not open and honest in trying to assess the true cost of this; then you will face a deeper, long lasting crisis."
"But what they’re actually doing is underestimating the problem, doing too little too late, and not being open and honest in trying to assess the true cost. The actual plan seems to be to keep the banks semi-alive by implicitly guaranteeing their liabilities and dribbling in money as necessary, all the while proclaiming that they’re adequately capitalized — and hope that things turn up. It’s Japan all over again."
"And the result will probably be a deeper, long-lasting crisis."

As funny as it is to see President "Nationalize It All" catch hell for not nationalizing fast enough, the rest of us need to keep making the case for less government intervention so the private sector can pull us out of this downturn. Just like it always does.

Eliminate these middle men

Why in the world are we trusting a bunch of bureaucrats who can't balance their own books with picking our winners and losers in the corporate welfare game?



If we are going to credit "incentives" with bringing the factory and "creating" jobs via bureaucratic decree, doesn't it make more sense to lower taxes for everyone and see how much better the market can do at creating growth?

How's your new hope and change going?

It's funny how every time a bunch of politicians get together and claim a grand victory for bipartisanship, what really happens is that the taxpayers get hammered and the ranks of principled lawmakers just gets smaller.

Nevertheless, it's disheartening that, with all their wheeling and double-dealing in Frankfort, they couldn't manage to even give a hearing to a bill that would merely require a 24 hour waiting period on tax and spending bills.

I know several Kentucky groups are working up tax and wasteful spending protest rallies. If you know of one, please mention it in the comments section.

Otherwise, stay tuned for at least one big announcement tomorrow on this site.

Drinking our way to prosperity

The Hartford Courant reports Republicans in Connecticut want to solve their state's overspending problems by expanding drinking hours in casinos. With a $1.35 billion projected deficit, what's next, a 2500 drink minimum?

Fortunately for Connecticut, cooler -- Democratic -- heads seem to be prevailing.


Can't wait till Kentucky's good-time crowd in Frankfort gets wind of this one. In our new era of bipartisan cooperation, there is no telling what we might get when the good old boys start mixing booze, late nights, and gambling.

Obama, the flesh-eating zombie?

When President Barack Obama talked about curing cancer last night, I couldn't help thinking of the movie "I am Legend" in which a cancer cure kills almost everyone and turns most of the survivors into cannibal zombies.


Does eating people pay prevailing wage, Mr. President?

Beshear spins for Big Ed and Big Health

Gov. Steve Beshear went on the Leland Conway radio show in Lexington to explain why he raised taxes and raided the state employee health fund. Here is what he said:

"We had some priorities that if at all possible we needed to maintain. And one was in education and the basic funding formula for our schools. I think everybody felt that it was just a requirement that we continue the effort that we're making to improve the education system. We had public safety issues that people felt were a priority as well as the healthcare safety net for our most vulnerable people."

In other words, he wanted the money to expand programs with a poor efficiency track record. Great.

I wonder if Senate President David Williams' answer will be any better.

Bad news, Bishop

Fayette County Detention Center Director Ron Bishop has been trying for two and a half years to get rid of federal whistleblower Cpl. John Vest.

For some strange reason, Bishop thought he had his big chance recently when a career small time criminal busted in Vest's home, only to be thrown to the sidewalk and chased off by Vest.

The criminal went downtown and filed assault charges on Vest. Bishop seemed to think this would allow him to fire Vest legitimately after trying repeatedly to do so illegitimately.

But the charges against Vest were dismissed with prejudice Tuesday.

Bishop has failed repeatedly in his efforts to escape from a big civil lawsuit that also has Mayor Jim Newberry and candidate Teresa Isaac sweating.

Mr. Obama, tear down your campaign web site!

As President Barack Obama addresses the nation tonight, it might be worthwhile to look at some of the promises he made before the election that didn't make it passed his first bill.

Bunning: Williams owes me $30,000

Senator Jim Bunning said KY Senate President David Williams came to him last year and asked for financial help for the campaigns of Sen. Jack Westwood and Sen. Ken Winters. Bunning said he got a promise the money would be repaid.

"David Williams owes me $30,000," Bunning said.

Who are you and what did you do with KY Senate President David Williams?

A month ago, we had a Kentucky state Senate determined to hold the line on taxes and a House minority that usually showed evidence of a spine.

Or so we thought.

Now, we have an army of tax raisers. And don't you dare call the tax raisers tax raisers or one of the tax raisers will let you hear about it.

House Minority Leader Jeff Hoover is someone I have always liked and respected. This is probably about as confrontational as he is going to get in defense of his bad votes.

But now Senate President David Williams is going to come to my county this weekend to a Lincoln Day dinner. This comes after raiding the employee health fund of $50 million and raising taxes that, a month ago, I would have sworn that he understood wouldn't solve anything. It's easier to make the case, in fact, that the tax increases and the health fund raid may make things worse because, as in the case of the federal bailout that is on the way, the money has already been spent. Having failed to discipline ourselves this time, how much worse do you think it will be next time around?

Williams has also filed a bill to take executive branch power away from the executive branch and entrust it to the legislative branch. Can't imagine why anyone other than Greg Stumbo would think that is a good idea now.

Where's the rest of the cavalry?

Secretary of State Trey Grayson has just issued the following statement in support of Senator Jim Bunning:

"Recent news reports change nothing about the US Senate race as I am concerned," Grayson said. "Senator Bunning is a friend and mentor. As I have mentoned before, if he were to decide not to run, I would be keenly interested in the race. Senator Bunning has said that he is running, and I take him at his word. I am not planning a primary."

Mr. Tax Raiser, where are you?

Casey County Republicans report Taxpayer Protection Pledge breaker Sen. Vernie McGaha failed to show up for last Friday's Lincoln Day Dinner.

Wonder if any other Senate Republicans are getting nervous about keeping their speaking engagements?

Thank you, Uncle Albert

This looks like a great idea. The Organizer-In-Chief wants us to "thank" our representatives for voting for the latest bailout scheme for those running our state and local governments into the ground.

I think I will do just that.

Just wondering

When Rep. Ben Chandler ran for governor in 2003, he refused to sign the Taxpayer Protection Pledge, calling it a stunt. When he ran for Congress the following year, he quickly promised never to vote for a tax increase. He has broken that promise many times.

It will be interesting to see if Sen. David Williams signs the Taxpayer Protection Pledge prior to running for the U.S. Senate.

David Williams running for U.S. Senate

(2/23 10:30 am update: Williams denies making calls to members of the House and says he will make a statement about his plans soon.)

State Senate President David Williams is making calls to members of the state House drumming up support for what had been only a possible run for the United States Senate seat currently held by Sen. Jim Bunning.

Hmmmm....