Freedom Line Blog

Newt versus The Wall Street Journal editorial board – the unofficial 2012 Republican campaign is off to a very lively start.

On January 22, the Journal ran a commentary entitled “Amber Waves of Ethanol” in which it criticized federal ethanol subsidies.  It noted that, “Four of every 10 rows of corn now go to produce fuel for American cars or trucks, not food or feed,” which does nothing to improve the environment or our reliance on foreign oil, but wastes billions in taxpayer dollars and drives food price inflation.  Likely 2012 candidate Newt Gingrich responded in Iowa last Tuesday, repeatedly referring to himself “as an historian” and accusing the Journal as part of a sinister cabal, saying, “Obviously big urban newspapers want to kill it because it’s working, and you wonder, ‘What are their values?'”

This morning, the Journal responds in its lead commentary entitled “Professor Cornpone.” This dispute, it says, symbolizes the larger fight “between the House Republicans now trying to rationalize the federal fisc and the kind of corporate welfare that President Obama advanced in his State of the Union”:

Given that Mr. Gingrich aspires to be President, his ethanol lobbying raises larger questions about his convictions and judgment.  The Georgian has been campaigning in the Tea Party age as a fierce critic of spending and government, but his record on that score is, well, mixed…  Now Republicans have another chance to reform government, and a limited window of opportunity in which to do it…  So along comes Mr. Gingrich to offer his support for Mr. Obama’s brand of green-energy welfare, undermining House Republicans in the process.”

Regardless of one’s views toward Mr. Gingrich as a potential candidate, the fact that the race is already lively with substantive policy debate is a healthy sign.

Barack Obama assured Americans throughout his campaign that if we hired him, he’d reduce the deficit.  Here is Obama in his own words from his closing infomercial of October 29, 2008:

I believe we need to usher in a new era of responsibility.  Across the country, families are tightening their belts, and so should Washington.  That’s why, for my energy plan, my economic plan and the other proposals you’ll hear tonight, I’ve offered spending cuts above and beyond their cost.  I’ll also go through the federal budget, line by line, eliminating programs that don’t work … and making the ones we do need work better and cost less.”

Here’s the ugly reality, over two years later:  The Congressional Budget Office (CBO) announced this week that the 2011 budget deficit will reach a record $1.5 trillion.  That follows $1.4 trillion and $1.3 trillion deficits in his first two years.  The 2008 deficit, for purposes of comparison, was $455 billion.

Something to consider when assessing Obama’s latest State of the Union address, and his upcoming promises over the next two years.

Perhaps the Department of Health and Human Services (HHS) should get credit for making the road to serfdom a little easier to travel.  Beset by criticisms that ObamaCare grants HHS Secretary Kathleen Sebelius “dictatorship” status with powers including on whom to bestow compliance waivers, HHS confirmed it handed out 500 new get-out-jail-free cards.

The purpose of the year-long waivers is to provide a compliance-free bridge for employers who would otherwise opt to pay the penalty for canceling out-of-compliance insurance plans.  That bridge only extends to 2014.

Alex Cortes at The Daily Caller notes that the waivers (averaging about two a day so far for 729 total) will only be granted until 2014 when ObamaCare’s state-run insurance exchanges come online.  Then, companies that stop offering insurance will pay the fine, but their employees will be able (i.e. forced) to use the exchanges or be fined themselves for ignoring the individual mandate.

Until then, private sector employers and employees must go hat-in-hand begging for a waiver from Comrade Sebelius.  Don’t worry, says a HHS spokesman, the number of waiver requests denied is “more than a handful, but not a big number.”  How benevolent.

Is there any promise that Barack Obama has kept as President?  He certainly made plenty of them, only to break them.

Now, it appears that we have two more.  Two very big ones.  Testifying before the House Budget Committee this week, Medicare Chief Actuary Richard Foster was asked a series of “true” or “false” questions by Rep. Tom McClintock (R – California).  Replying to McClintock’s question whether Obama’s famous pledge that “If you like your present health insurance, you can keep it” was true or false, Foster replied, “not true in all cases.”  And when asked whether ObamaCare would reduce costs as he explicitly guaranteed, Foster replied, “I would say false, more so than true.”

If the political left clings to their “Bush Lied!” belief, where are they now and what do they have to say about Barack Obama?  Just curious.

CFIF VP of Legal and Public Affairs Timothy Lee yesterday appeared on The Lars Larson radio show to discuss the effort to repeal ObamaCare. Listen to the interview below.

In this week’s Freedom Minute, CFIF’s Renee Giachino challenges the professional cynics in Washington who continue to claim that, despite the House vote this week to repeal ObamaCare, full repeal will never become a reality.  Giachino further explains why the skeptics are missing three important points and how the House vote was indeed the beginning of the end for ObamaCare.

The U.S. House of Representatives just passed H.R. 2, legislation to fully repeal ObamaCare, by a vote of 245-189.  Three Democrats — Representatives Mike Ross (AR), Mike McIntyre (NC) and Dan Boren (OK) — joined with all Republicans in support of the repeal measure.

The nation’s capital is abuzz today over President Obama’s Wall Street Journal commentary, “Toward a 21st Century Regulatory System.” Astonishingly, Obama actually praises America’s free market system as “the greatest force for prosperity the world has ever known” while promising regulatory reform:

I am signing an executive order that makes clear that this is the operating principle of our government.  This order requires that federal agencies ensure that regulations protect our safety, health and environment while promoting economic growth.  And it orders a government-wide review of the rules already on the books to remove outdated regulations that stifle job creation and make our economy less competitive.  It’s a review that will help bring order to regulations that have become a patchwork of overlapping rules, the result of tinkering by administrations and legislators of both parties and the influence of special interests in Washington over decades.”

Whether Obama speaks honestly, or simply seeks to deceive the electorate in anticipation of 2012, lies beyond our powers of divination.  The available evidence, however, justifies extreme skepticism.

One cause for doubt stands out immediately.  In identifying examples of the federal regulatory state run amok, the best Obama can do is point to saccharine, saying that the Food and Drug Administration (FDA) permits it for consumption in coffee while his Environmental Protection Agency (EPA) labels it a “dangerous chemical.”  That’s it?  That’s the best example he can cite?

Just one month ago, Obama’s own Federal Communications Commission (FCC) flagrantly defied two-to-one public opposition, a unanimous Court of Appeals and a bipartisan group of 300 members of Congress by voting to regulate the Internet via “Net Neutrality.” Obama claims in his column that he aims to prevent “regulations that stifle job creation and make our economy less competitive,” but that’s exactly what “Net Neutrality” will do.  The FCC seeks to regulate an Internet sector that has thrived over the past two decades precisely because the federal government has refrained from interfering with regulations such as this.  The result will be fewer incentives for continued Internet investment, expansion and innovation, as well as declining service as capacity fails to keep pace with demand.

Additionally, Obama’s Labor Department seeks to impose “card check,” which will end secret ballot voting in union elections, and his EPA seeks to impose global warming carbon cap-and-tax regulations.  Both of those agenda items failed miserably in Congress even when controlled by Democratic supermajorities, but Obama’s regulatory agencies now seek to impose them anyway.

So Obama talks a good game in today’s op/ed.  But unless he issues an immediate cease-and-desist order on “Net Neutrality,” card check and cap-and-tax, his words will prove just as meaningless as his other broken promises.

This week, the Heritage Foundation and The Wall Street Journal released the 2011 edition of their Index of Economic Freedom.

Once again, the facts speak for themselves:  Economic freedom means not only more prosperity, but also greater overall wellbeing.  In calculating economic freedom and ranking the world’s economies, the Index examines 10 criteria:  business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption and labor freedom.  The correlation between economic freedom and living standards is once again made clear:

Despite varying degrees of economic freedom across the regions, the relationship between economic freedom and prosperity remains constant within the regions.  Per capita incomes are much higher in countries that are economically free.  Not surprisingly, overall human development also thrives in an environment that is economically free…  Higher economic freedom induces greater overall human development as measured by the United Nations Human Development Index, which assesses the combined progress of life expectancy, literacy, education, and the standard of living.”

The good news is that 117 of the world’s economies improved over the past year, whereas only 58 declined.  For Americans, the bad news is that we fell from 8th to 9th.  On that front, note the Index’s comments about the  importance of reducing government spending:

Countries that reduced government spending had economic growth rates almost two percentage points higher in 2009 than countries whose government spending scores worsened, and countries with the highest rates of government spending had gross domestic product (GDP) growth rates 4.5 percentage points lower on average than countries where government spending was best contained.”

Will the new 112th Congress help reverse that decline?  As we approach the 2012 elections, that will prove a critical question.

Making good on the promise to offer greater legislative transparency and in preparation forthe House vote to repeal ObamaCare scheduled for next week, House Republicans have posted the repeal bill online for all to see.

Check it out here.

In October 2003, tough-talking optimist Arnold Schwarzenegger unseated bland public union yes-man Gray Davis as Governor of California in a revolutionary special recall election.  Today, Schwarzenegger departs with a depressed 22% approval rating that serves as a warning for Republican newcomers in Congress and across the 50 states against the perils of go-along-to-get-along “bipartisanship.”

During his first two years in office, Schwarzenegger maintained a confrontational demeanor that California desperately needed as it hurtled toward its current disastrous state.  In March 2004, for instance, he famously ridiculed California’s milquetoast political class as “girlie-men.”

Unfortunately, four common-sense and ultimately necessary ballot initiatives that he supported failed in November 2005.  Instead of sticking to principles, Schwarzenegger opted for “bipartisan” political expediency and personal survival.  What followed was a shameful litany of global warming bills, ObamaCare-like proposals, lack of leadership and tax hikes.  His capitulation provided a short-term payoff via reelection in 2006, but ultimately proved disastrous for himself and the state.  Today, despite Schwarzenegger’s early promise, California is in even worse shape than when he entered office.  And jaded voters witnessed yet another sad example of a politician who promised to change the political culture, only to allow the political culture to change him.

Schwarzenegger’s failure, however, provides a helpful cautionary guide for incoming Republicans this new year.  Namely, sacrificing the principles that got you elected at the tempting altar of “bipartisanship” will only deepen our nation’s current difficulties and eventually doom you politically.

On this date in 1773, Samuel Adams and his Sons of Liberty hosted their original tea party in Boston Harbor.  Two hundred thirty-six years later, CNBC’s Rick Santelli refreshed the movement from the floor of the Chicago Board of Trade, and its momentum continues.  So happy birthday, Tea Party – federal judge Henry Hudson provided a fitting gift by declaring ObamaCare’s core mandate unconstitutional based on your underlying principles.

Below is two-time Pulitzer Prize-winner Michael Ramirez’s take on yesterday’s federal court ruling that Congress exceeded its authority by mandating all individuals buy health insurance in ObamaCare.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

In his opinion declaring ObamaCare’s central provision (the individual mandate) unconstitutional, United States District Judge Henry Hudson today vindicated the core concept of individual freedom that provides the foundation of our constitutional republic.  More than that, however, Judge Hudson provided a refreshing break from that loathsome parade of shameless judges who have insulted Americans’ intelligence through recent decades by mangling the English language beyond any logical recognition.

Namely, Judge Hudson rejected the Obama Administration’s central argument that economic inactivity somehow amounts to “economic activity.”  On Page 11 of his ruling, Judge Hudson neatly summarized the Administration’s core logic: “Critical to the Secretary’s argument is the notion that an individual’s notion not to purchase health insurance is in effect ‘economic activity.'”  Just as neatly, he rejected that Orwellian illogic in terms that should be etched permanently as a reminder on Obama’s teleprompter:  “This broad definition of the economic activity subject to Congressional regulation lacks logical limitation and is unsupported by Commerce Clause jurisprudence.”

Individual freedom and linguistic logic won a historic victory today.  For if inactivity was somehow contorted to constitute “commerce,” then there is no limit whatsoever to Congress’s reach.

The fight continues, but we should also stop to savor this important moment.

A federal judge in Virginia has ruled that significant parts of ObamaCare are unconstitutional, including the mandate requiring individuals to purchase health care insurance.

As Politico.com is reporting it:

In a highly-anticipated suit brought by Virginia Attorney General Ken Cuccinelli, District Judge Henry E. Hudson ruled that the individual mandate to buy health insurance is unconstitutional as it “exceeds the constitutional boundaries of congressional power.”

Hudson stopped short of blocking the law’s implementation until a higher court acts, but said he expects the administration to honor his ruling.

“The final word will undoubtedly reside with a higher court,” Hudson wrote in his ruling. “In this Court’s view, the award of declaratory judgment is sufficient to stay the hand of the executive branch pending appellate review.”

In light of today’s ruling, the Obama Administration should immediately cease implementation of the unconstitutional individual mandate and all other provisions of ObamCare until the matter is fully resolved by the courts.  If the Administration refuses to act, Congress should act without delay to force the Administration’s hand.

Yuval Levin notices an interesting trend in the various plans coming out of the Obama Debt Commission.  When the proposals are added together there seems to be a consensus building towards overhauling federal healthcare entitlement spending.  If done correctly, it could be a moment for conservatives to inject market principles like choice and opportunity into the system.

There is growing agreement in American politics that the challenge of our time is cleaning up the horrible mess created by the Great Society—the mess that is our approach to domestic discretionary spending but above all the mess that is our health-care entitlement system. That is the essence of our debt and deficit problems.

The question is whether we can deal with that mess by keeping the basic structure of the Great Society entitlements while trimming significantly elsewhere and massively raising taxes, or whether we must deal with it by fundamentally reforming those Great Society entitlements while trimming significantly elsewhere and spreading the tax burden more widely but less heavily to encourage growth and innovation. The latter is fairly obviously the answer to that question—given demographic and economic realities, and given the kind of country the American public wants to live in—but it will take a little time before that really sinks in. It is a very good thing, though, that the question is now being asked.

Reforming (or rather, transforming) the Great Society into a fiscally sustainable, free market-guided, consumer-driven system would be the kind of bipartisan project worthy of the era President Barack Obama and his congressional counterparts find themselves.  Solving that puzzle would establish the president’s sought for legacy while enacting the kind of policy changes the Rep. Paul Ryan (R-WI) and other conservative intellectuals champion.

H/T: National Review Online

Former White House Chief of Staff Rahm Emanuel famously said that we mustn’t allow a “crisis to go to waste” in foisting such things as ObamaCare upon an unwilling nation.  But what if there’s no “crisis” in the first place?

This month, Gallup released a scientific survey that is a critical component in any health care policy discussion.  In what must come as a devastating shock for those who defend ObamaCare, an astonishing 82% of Americans rate their health care as “good” or “excellent.”  Some 40% place their health care in the “excellent” category, which exceeds the previous high of 38% and the long-term average of 34%.  Even those who don’t possess health insurance (which must be distinguished from actual health care) rate their health care “good” or “excellent” by a 53% majority.

Clearly, there is no health care “crisis,” only a lot of ObamaCare “waste.”

Regular readers know that Paul Krugman, Tom Friedman, and Joe Klein regularly jockey for the status of political pundit I most despise. Well, Dr. Krugman pulled into the lead with his stunning endorsement of “death panels” as the royal road to America’s fiscal health on yesterday’s edition of “This Week with Christiane Amanpour”:

H/T: NewsBusters

Our Liberty Update, CFIF’s weekly e-newsletter, this week includes the commentary “A Balanced Budget Amendment Doesn’t Have to Mean Higher Taxes – CFIF’s ‘One More Vote’ Proposal Doesn’t.” In that column, we note that the White House deficit commission’s fundamental flaw is that it takes for granted 2010 federal spending levels as its baseline:

The overriding problem with the commission’s plan is that it accepts the 2010 fiscal year as its spending base, thereby locking in the alarming spending increases of the Obama-Pelosi-Reid regime.  That includes the failed “stimulus” that attempted to spend our way to prosperity, the bailouts, the pet projects and everything else they’ve heaped into our budget.  Since 2008, federal spending has surged from approximately $25,000 per household to $30,000 per household, and jumped during that two-year span from its historical average of 20% of gross domestic product (GDP) to approximately 25% of GDP.  Richard Rahn points out that, “Federal government spending and revenues in 1968 as a percentage of gross domestic product (GDP) were almost identical to the levels in 2008.”

Unfortunately, it’s actually even worse than that.  The commission also leaves in place ObamaCare, which is already driving up healthcare costs and adding to the deficit (despite promises that it would have the opposite effect).  As James Capretta from National Review Online observes, we shouldn’t be surprised given the commission’s composition:

None of this is all that surprising, given how the commission was formulated.  It’s not really a bipartisan commission at all; it’s an Obama commission.  It was created by the president and stacked with Democratic appointees.  Two-thirds of the 18 members were picked by the president or Democratic congressional leaders. Only six were appointed by Rep. John Boehner and Sen. Mitch McConnell.  The president says the public doesn’t want to “re-litigate” the health care war.  He’s wrong.  As last Tuesday’s exit polls make clear, a strong plurality wants exactly that.  The American people know that the ill-advised law was railroaded through Congress and is a colossal mistake.   The fundamental problem here is that it is not possible build a bipartisan budget framework on a foundation that includes a partisan health-care plan with sweeping implications for future spending levels.

Americans cannot be asked to accept the commission’s findings when they take as a given current spending levels and an ObamaCare atrocity that must be replaced.

Below is one of the latest cartoons from two-time Pulitzer Prize-winner Michael Ramirez.

View more of Michael Ramirez’s cartoons on CFIF’s website here.