Freedom Line Blog

According to a Wall Street Journal survey of economists, unemployment for the November 2012 election will remain elevated at 7.7%.  That would make it the highest for a presidential election since the Carter/Ford nailbiter in 1976, when it was 7.8%.

Ominously, the report adds, “Economists in the survey slightly raised the likelihood of recession over the next 12 months to 14%, largely due to rising oil prices.”  The article endeavors to highlight the caveat that, “analysts point out that it is often the overall trend – rather than the level of joblessness – that determines an incumbent’s fate.”  The 7.8% rate of November 1976 (in which the incumbent Ford lost), however, had declined from 9.0% in May of 1975, 8.3% one year earlier and 7.9% at the beginning of 1976.

Liberal pundits appear eager to claim that no Republican wants to take on the supposedly strong Obama, but this survey and storm clouds in the form of higher gas prices, overall inflation and worldwide chaos may suggest otherwise.

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.

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.

In response to questioning from Senator Jeff Sessions during a Budget Committee hearing yesterday, Treasury Secretary Timothy Geithner admitted President Obama’s proposed budget creates an “excessively high interest burden” that is “unsustainable.”

The president’s proposal would add $13 trillion in new gross debt and would increase interest payments on the national debt to $844 billion annually by 2021.

Two months ago, when Obama’s Federal Communications Commission (FCC) passed its “Net Neutrality” proposal by a partisan 3-2 margin, we guaranteed that it would inevitably be defeated via legislation, the courts or both.

Sure enough, last month Verizon Communications challenged the FCC’s rogue vote in the U.S. District Court of Appeals for the D.C. Circuit, the same court that unanimously ruled last April that the FCC doesn’t possess lawful authority to impose Net “Neutrality.”  Now this week, both the House and Senate introduced resolutions to repeal the FCC’s rogue action.  The resolutions were introduced pursuant to the Congressional Review Act, which allows Congress to review and overrule federal agency regulations via simple majority.  Importantly, such resolutions are not subject to normal Senate filibuster hurdles.

“Net Neutrality” constitutes a destructive and illegal federal intrusion into the Internet, which has managed to flourish just fine over the past two decades without Obama Administration micromanagement, thank you very much.  The American public opposes it by a 2-to-1 margin, courts have rejected it unanimously and Congressional opposition is bipartisan.  While “Net Neutrality’s” demise is a matter of when, not if, it is still absolutely critical that we as citizens maintain our resolve to spare the Internet sector from becoming bureaucrats’ tech version of ObamaCare.

Finally, some good news to report on the Collegegate front.

A bipartisan group of Congressional Republicans and Democrats is preparing to take action that would interrupt the Obama Department of Education’s plans to unfairly cripple career colleges.  Chairman John Kline (R-MN) of the House Education and Workforce Committee, Chairwoman Virginia Foxx (R-NC) of the Subcommittee on Higher Education, and Representatives Alcee Hastings (D-FL) and Carolyn McCarthy (D-NY) are expected to offer an amendment later this week blocking Education Department funding for implementation of the abusive so-called “Gainful Employment Rule.”  In order to put an end to this overly burdensome regulation, we must show our support for providing education opportunities for students who attend career colleges, and urge Congress to support defunding the Gainful Employment Rule.  Please use CFIF’s directory to call your Member of Congress now, and tell them to support the Kline/Foxx/Hastings/McCarthy Amendment to the Fiscal Year 2011 Continuing Resolution on Gainful Employment.

Last month, we noted with alarm that the Congressional Budget Office forecast a record $1.5 trillion federal budget deficit for fiscal 2011.

It’s apparently even worse than that.  Today, the Obama Administration unveils its proposed budget, projecting that this year’s deficit will actually reach $1.6 trillion.  So after telling Americans during his 2008 campaign that he was going to go through the budget “line-by-line” and reduce the deficit, Obama has given us deficits of $1.4 trillion, $1.3 trillion and now a record $1.6 trillion.  And what to show for it?  Unemployment remains at or above 9% for a post-World War II record 21st consecutive month, despite Obama’s promises that it would top out at 8% in October 2009 and decline to between 6% and 7% today.

As for those who continue their mindless “Blame Bush” rationalization crusade, they must explain how three years into the Age of Obama, the deficit is increasing, not decreasing, from $1.3 trillion to $1.6 trillion (an almost 25% increase).

This year’s Conservative Political Action Conference (CPAC) is set to be the biggest ever, and CFIF Vice President of Legal and Public Affairs Timothy Lee is honored to be selected as one of its speakers.

His panel, entitled “The Left’s Campaign to Reshape the Judiciary,” is scheduled for 9:30 a.m. this Friday, February 11 in the Marshall Ballroom.  Kelly Shackelford of the Liberty Institute will moderate the panel, which also includes Ken Klukowski of the American Civil Rights Union and Dan Pero of the American Justice Partnership.   Our judicial system is a primary tool by which the political left seeks to remake America to fit its distorted image, and we must remain vigilant against that scheme.  Especially with the 2012 presidential kicking off, this CPAC isn’t one to miss.

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.

In its monthly report this morning, the Labor Department announced that unemployment has now remained at or above 9% for a post-World War II record 21st consecutive month.  Additionally, it reported just 36,000 new jobs, well short of the expected 140,000 number.

On the eve of the 100th anniversary of Ronald Reagan’s birth, these numbers contrast the results of a big government agenda versus a free market agenda.  In the 23 months since Obama’s massive $1 trillion “stimulus” passage, unemployment has increased from 8.2% to 9%.  One would expect better results in exchange for deficits of $1.4 trillion in 2009, $1.3 trillion in 2010 and an expected record $1.5 trillion this year.  Keep in mind that Obama projected that if we followed his big government agenda, unemployment would be down between 6% – 7% by now.  In contrast, the 23 months following the effective date of Reagan’s tax cuts in January 1983 saw unemployment plummet from 10.4% to 7.2%.

The facts speak for themselves.  Inexplicably, Obama nevertheless called for even more federal “stimulus” in his State of the Union address.  As we celebrate the Gipper’s 100th birthday, we should remember the timeless lesson taught by his freedom agenda’s success.

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.

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.

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.

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.

As President Obama uses Tuesday night’s State of the Union address to attempt a pivot to the center (a topic you can hear me discuss at length with my fellow former White House speechwriters Peter Robinson and Bill McGurn in last week’s Ricochet podcast), newly minted Speaker of the House John Boehner is preparing to call the president’s bluff by teeing up an offer that the president — who has long claimed to be a proponent of education reform — shouldn’t be able to refuse: the renewal of school vouchers in Washington, D.C.

D.C. schools have long had a reputation as the nation’s worst. In response, a five year pilot program of Opportunity Scholarships (a fancy term for school vouchers) was begun in 2004. Then, in 2009 — despite years of positive results — an overwhelmingly Democratic Congress bent to the will of the teachers’ unions and shut the program down. Ninety percent of the children who had to leave the program then found themselves back in failing D.C. schools.

If Speaker Boehner has his way, that trend will be coming to an end soon. According to a story in Politico:

The day after President Barack Obama makes education a centerpiece of his State of the Union address, House Speaker John Boehner will try to force his hand on the issue of school vouchers in Washington, D.C. as a test of the White House’s commitment to bipartisanship.

The Ohio Republican, along with Sen. Joe Lieberman (I-Conn.), will introduce legislation on Wednesday to reauthorize the D.C. Opportunity Scholarship program, the speaker’s office said Monday, making a school voucher initiative that Democrats, including Obama, have strongly opposed as a bargaining chip for beginning discussions on the administration’s desired education proposals.

It’s likely that the media won’t say much — or at least won’t say it for long — if this proposal doesn’t go anywhere. That’s to their shame. How the Democratic Party can ever expect to be taken seriously in its self-appointed role as defender of the downtrodden is inexplicable if they don’t take action to heal the wounds of poor minority children whose first, best chance at a better life is crushed beneath the weight of government bureaucracy.

Last month, President Obama’s Federal Communications Commission (FCC) voted by a partisan 3-2 margin to regulate Internet service via Net “Neutrality.”  On that date, we predicted,”The FCC’s reckless effort to regulate Internet traffic will now begin a slow death march to ultimate defeat from legal challenges and Congressional action.”

Exactly one month later, the judicial front in that battle is underway.

Yesterday, Verizon Communications challenged the FCC’s rogue vote in the U.S. District Court of Appeals for the D.C. Circuit.  That’s the same court that unanimously ruled last April that the FCC doesn’t possess lawful authority to impose Net “Neutrality,” but the FCC defiantly pressed ahead despite that unequivocal ruling.  In so doing, the FCC also defied 2-to-1 public opposition and a bipartisan group of 300 from Congress.  Obama took to the pages of The Wall Street Journal this week to profess a new commitment to regulatory restraint in pursuit of a healthier economy, job creation and more humble federal government.  But his own FCC belies that supposed commitment with its Net “Neutrality” agenda.

Leaders of the new 112th Congress have also committed to overturning the FCC’s destructive attempt to regulate Internet service.  Whether the demise of Net “Neutrality” comes legislatively or judicially, it can’t come soon enough for American consumers, investors and employers.

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 morning, the Labor Department announced a national unemployment rate of 9.4%.  Unfortunately, this means that the unemployment rate has surpassed 9% for a post-World War II record 20 consecutive months.  Moreover, the announcement of just 103,000 new jobs fell well short of the anticipated gain of 150,000 new jobs.

The Obama Administration will trumpet the misleading 0.4% decline from last month’s 9.8% rate as evidence that its agenda is somehow succeeding.  That claim, however, conceals the fact that the rate had already dropped from January 2010’s 9.7% rate to 9.5% in June, only to climb back to 9.8% to finish the year.  Further, this is the same Obama Administration that promised unemployment would peak at 8% in October 2009 – fourteen months ago – and be down to 7% by now if we just passed his so-called “stimulus” bill back in February 2009.  Almost $1 trillion in deficit spending and two years later, the verdict is clear.  It has failed miserably.

It’s something to remember as the Obama Administration attempts to “triangulate” and claim successful governance as we steam toward the 2012 reelection campaign.

In a recent interview with CFIF’s Renee Giachino, John Yoo, University of California at Berkeley School of Law Professor and former deputy assistant attorney general in the Office of Legal Counsel of the U.S. Department of Justice, discussed the Obama Administration’s record on issues involving foreign affairs, national security and the separation of powers.

Listen to the interview 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.