February 21, 2011 at 6:01 pm

Huckabee Declines to Take Shot At Daniels

Via Tim Alberta at the National Journal:

Former Arkansas Gov. Mike Huckabee (R) doesn’t like the idea of Republicans calling a “truce” on social issues to focus on fixing the economy — but that doesn’t mean he’s eager to take on the man pushing that message, Indiana Gov. Mitch Daniels (R).

“I’m a fan of Mitch Daniels,” Huckabee said on a conference call with reporters Monday, adding that Daniels has “an extraordinary skill set not only to be governor but to be president.”

Huckabee was speaking with reporters one day before the release of his book, “A Simple Government,” in which he writes: “I’ve been criticized many times for talking so much about ‘social issues’ when the real issue now, according to some people, is the economy. Well, buckle up, Turbo, because here’s a simple, inarguable fact: Every broken, fatherless family has a tremendous economic impact.”

Huckabee made it clear that while he admires Daniels and could even see himself supporting the Hoosier for president, Republicans “don’t need to be talking about a truce.”

“I believe conservatives can walk and chew gum at the same time,” said Huckabee, who stressed that one of the underlying themes of his book is that “there’s no way to disconnect social issues from the economic,” because there are “direct consequences from social breakdowns.”

Last year, Huckabee was critical of Daniels’ proposed truce on social issues, and his book shows that he won’t be shy about continuing to express his disapproval of the idea.

Huckabee’s book, which runs 210 pages, carries the subtitle: “Twelve Things We Really Need from Washington (and a Trillion That We Don’t!)”

A lesser man would have taken this opportunity to slam Daniels over his “truce” comments.  Say what you will about Mike Huckabee but he’s a stand-up guy.

at 10:57 am

Does Eric Cantor Want a Third Party?

The Republican Party doesn’t want the Tea Party movement to spin off and form its own political party.  At the presidential level, this would be a disaster, at least in the near-term.  However, this is becoming an increasingly greater possibility as elected Republicans in the 112th Congress shrink from their responsibilities, as House Majority Leader Eric Cantor recently did when he, along with 91 other Republicans, voted against the Jordan amendment to cut $100 billion in federal spending. 

$100 billion is a drop in the bucket.  We have no money.  I thought the message of the November 2010 elections was crystal clear:  cut federal spending.  This message seems lost on many in GOP leadership positions.  What we expect are deep cuts and bold proposals.  Rand Paul has been leading the charge by suggesting across-the-board cuts.  This is what Tea Partiers expect.  You can’t cut enough from the budget. 

This was an important vote and will not be forgotten by the Tea Partiers who made calls, stood in the blistering cold and scorching heat at so many rallies in 2009 and 2010, and gave their time to help candidates during last the last election cycle.

February 20, 2011 at 5:40 pm

Cantor and 91 Other House Republicans Cower from Spending Cuts

As Adam Bitely from NetRightDaily.com reported, 92 House Republicans voted against Republican Study Committee Chairman Jim Jordan’s amendment to the Continuing Resolution which would have cut nearly $100 billion in spending.  Among those voting against the spending cuts were House Majority Leader Eric Cantor and Majority Whip Kevin McCarthy.  The real conservatives in Republican leadership positions, Budget Committee Chairman Paul Ryan and Republican Caucus Chairman Jeb Hensarling, voted in favor of the amendment.

Either you’re serious about cutting spending or you’re not.  Despite his tough talk, Cantor let down the voters of Virginia.  We have no money.  We’re broke.  This isn’t the first time that Cantor has failed voters.  In 2009, Cantor and 84 other Republicans voted to support the unconstitutional AIG bonus tax.  These firms shouldn’t have been bailed out in the first place but passing a law taxing individuals only added insult to injury. 

Has the Republican leadership forgotten about the elections of November 2010?  The Tea Party movement should be angry.  Republicans who talk tough about spending cuts and then fail to deliver on critical votes are no better than their liberal-progressive counterparts.  This was an important vote.  Even if the measure had passed, $100 billion doesn’t even big to scratch the surface.  If the Republicans are going to accomplish any of their objectives they need strong conservatives in leadership positions.  Cantor should step aside.

February 18, 2011 at 9:01 pm

The Tea Party Movement Must Stand with Governor Walker

Like the federal government and much of the rest of the country, Wisconsin is broke.  As such, Governor Scott Walker has courageously asked public employees to make a 5.8% contribution to their pensions, which is roughly equal to the national average.  He’s also asked them to pay 12.6% of their health insurance costs, which is about half the national average.  These are hardly unreasonable requests considering that most Americans are paying much more out of their own pockets.  At a time when most Americans are tightening their family budgets these unions expect a free ride when it comes to health care and retirement savings.  Governor Walker stands in stark contrast to Barack Obama who has passed up every opportunity to cut the deficit and reduce our debt.  Then he has the audacity to call Walker’s proposal an “assault” on unions.  Talk about playing fast and loose with the facts. 

Our socialist friends and the mainstream media want us to believe that the protests in Wisconsin are organic, grassroots demonstrations.  Out comes the class warfare card.  The reality is that this is an astroturf operation if there ever was one.  Obama’s campaign organization–Organizing for America–and the Democratic National Committee–are funding and busing in union members throughout the country.  This is classic campaign politics.  Obama wants to win re-election and he can’t do that without the union vote. 

This is where the Tea Party movement needs to step in and help out the govenor.  The movement can’t fade away now that November 2010 has come and gone.  This is another fight that needs to be won.

at 9:51 am

Book Giveaway and Review: “The Dollar Meltdown” by Charles Goyette

The Dollar Meltdown:  Surviving the Impending Currency Crisis with Gold, Oil, and Other Unconventional Investments

by Charles Goyette

Penguin (October 26, 2010)
272 pages.
List Price:  $17.00  Amazon Price:  $11.56

Charles Goyette has made an important contribution to the conservative and investment literature by distilling complicated economic and financial matters into an easily digestible volume.  This is a must-read for conservatives and personal investors in search of a better understanding of a host of economic and financial topics including:  the federal bailouts, the national debt, monetary policy and the Federal Reserve, inflation, and the role of gold in currency valuation throughout history.

The author’s thesis is simple:  America’s massive national debt, coupled with reckless intrusions by government regulators, have put this country on a crash course toward high inflation and dollar devaluation.  Goyette divides the book into four sections:  Where We Are, How We Got Here, What Happens Next, and What to Do.

The author provides common sense strategies for personal investors looking to shield their assets from the dollar devaluation.  Goyette provides the reader with a blueprint for building a diversified investment portfolio with holdings in tangible commodities including gold, silver, and oil.  He even provides information on specific investment vehicles such as the SPDR Gold Shares exchange-traded fund to help you jump-start your investment research.  One of the best features of the book is that it has an appendix full of investment resources.  Of course, before you invest in anything you should always do your own research and never, ever buy on speculation.

This book also highlights the damage that has been done to our economy by incompetent public officials (Republicans and Democrats) in Congress, the Federal Reserve, and the Executive Branch.  Timothy Geithner stands out, though:

Timothy Geithner, soon to be named President Obama’s new treasury secretary, was the president of the Federal Reserve Bank of New York at the time.  He had solemnly explained the prior April that but for the Fed’s bailout, the failure of Bear Stearns would have led to falling stock prices and downward pressure on real estate prices.  Such a failure, said Geithner, would have led to “a greater probability of widespread insolvencies, severe and protracted damage to the financial system and, ultimately, to the economy as a whole.”  This, of course, is precisely what happened after the bailout.  (pg. 14)

Government bailouts and Keynesian economic policies do not work.  Yet we have public officials like Geithner who continue to occupy positions of power despite incredibly poor past performance.  Geithner was dead wrong on the Bear Stearns bailout.  The company failed and was sold in a fire sale to JP Morgan Chase.  So why would Geithner think that an even bigger bailout, the Troubled Asset Relief Program (TARP), would work months later?

Empirical evidence should have told him that bailouts were ineffectual.  Government has an innate compulsion to “try to do something.”  Instead, they should let the market correct itself.  This means that companies who made poor business decisions should reap the consequences.  The government’s meddling in the markets has created an environment of socialized risk and privatized gain.

How to win a free copy of The Dollar Meltdown by Charles Goyette:

Penguin was kind enough to give me three copies of the book to give away to readers of Hope is Not a Foreign Policy.  The rules are simple.  For each action you take (see list below), leave a comment indicating what you’ve done.  Leave a new comment for each new action that you take.  For example, if you blog about the giveaway on your blog, leave a comment.  If you post the giveaway on your Facebook News Feed, leave a comment.  The winners will be determined by a randomized number drawing, so the more comments you leave, the better your chances of winning.

The giveaway will close on Friday, February 25.  Good luck!

February 17, 2011 at 9:31 pm

Put the Students First: Fire the Striking Teachers

From the Editors at Investor’s Business Daily:

Labor: Unionized Wisconsin teachers should be ashamed of their response to legislation that would end their privilege to bargain collectively. And if such lousy behavior continues, they should be relieved of their duties.

The Wisconsin government is in a financial hole, operating with a $137 million deficit for the current fiscal year ending June 30. Its future is filled with bigger deficits, projected to be as large as $3.6 billion.

One way to cut into the shortfall is to end the public employee unions’ collective bargaining privilege that has landed them the generous salaries and benefits the taxpayers are struggling to pay.

Doing what voters elected him to do, new Republican Gov. Scott Walker introduced a bill last week that would strip nonfederal government workers in Wisconsin of their collective bargaining license and require them to contribute more to their benefits package.

Public school teachers, who would not be the only public employees affected, responded as if they took their cues from their students. They marched like spoiled entitlement queens on the Capitol in Madison and threw a tantrum, leaving behind trash and tarnished images that someone else has to clean up.

The teachers are so incensed that 40% of the 2,600 of them who are in the Madison collective bargaining unit cut class Wednesday to demonstrate.

This prompted school officials to cancel classes Wednesday and again Thursday, which is cheating students — and taxpayers — out of two days of learning.

But this is all about the kids, right? Isn’t that why some teachers even took students with them to protest, as one student so eloquently put it, “whatever this dude is doing”?

The media are labeling Walker’s plan to cut costs bold and aggressive, which it is. It is also overdue.

But it is not extreme, as one poorly informed college-student protester claimed.

If the governor’s proposal becomes law, public employees would have to pay half of their pension contributions and at least 12.6% of their health care insurance premiums. Overall, their costs would go up by 8%.

Considering that private-sector workers who aren’t protected by favorable laws have been hit much harder, that’s a modest impact. It is not, as Barack Obama, president of the United States — not president of the local union hall — has suggested, “an assault on unions.”

And it’s a much better outcome than layoffs, which will come in the thousands if not tens of thousands if the legislation doesn’t become law.

Teachers belong in classrooms, not in mass protests. The only teaching they can do at demonstrations is to show their students how not to act.

Some protesters have chanted “Recall Walker now,” but it’s the teachers, not the governor, who should be losing their jobs if they refuse to perform them.

This editorial really says it all.  The unions have destroyed public education in America.  It’s time to put the students first.  The striking teachers should be relieved of their duties.

at 7:32 pm

Conservatives Shouldn’t Fear Cuts to Defense Budget

Social Security may be the third rail of American politics, but the defense budget is at least worthy of notable mention.  In fact, the defense budget is arguably the most politically sensitive budget item after entitlement spending.  Conservatives and Republicans, who have enjoyed an advantage over their liberal counterparts on national security issues since Vietnam, too often associate a “strong national defense” simply with increases in defense spending—without considering the expenditures in the context of broader U.S. grand strategy.  Many conservatives and Republicans are reluctant to propose cuts to the defense budget out of fear for appearing weak.  Many just lack any strategic sense and simply follow the big government internationalism crowd which includes both liberals and parts of the conservative movement.

Liberals and Democrats are split into two camps:  There are those Democrats who remember the Left’s shameful behavior during the Vietnam War and are reluctant to propose cuts out of fear for appearing weak.  Then there are liberals and Democrats who can’t cut enough from the defense budget and have lost sight of the important fact that one of the few constitutional responsibilities of the federal government is to provide for the “common defence.”

Then there is a third category which includes liberals and Democrats, conservatives and Republicans:  politicians with defense contractors in their states.  These politicians are reluctant to cut defense programs even when they’re no longer needed in order to protect jobs in their districts and states.  The F-22 is a case in point.

So what did President Obama do with the Fiscal Year (FY) 2012 defense budget?  He did what was politically safe and made no cuts to the baseline budget but slightly reduced funding for the wars in Iraq and Afghanistan.  As a liberal Democrat, he is extra sensitive to being perceived as weak and can’t afford the political risks associated with larger cuts to the defense budget; he does want a second term so why stoke the Jimmy Carter comparisons?  Justin Fishel writing at FoxNews.com provides a good snapshot of the FY 2010, 2011, and 2012 budgets:

In 2010 there was a base budget of $531 billion, with an additional $130 billion to fund the wars in Iraq and Afghanistan, known as OCO (Overseas Contingency Operations) funding. President Bush called it Global War on Terror or GWOT funding, a term dropped by Obama. Later in 2010 President Obama added another $33 billion in supplemental spending to fund the 30,000-man troop surge in Afghanistan.

2010 grand total: $694,000,000,000

The proposal for FY 2011 asked for a $549 billion base, with $159 in OCO spending.

2011 proposed grand total: $708,000,000,000

The FY 2012 defense budget asks for $553 billion in base spending, with $118 billion for the wars. That significant decrease in war spending is directly related to heavy troop withdrawals in Iraq.

2012 proposed grand total: $671,000,000,000

In January Secretary Gates announced a plan to cut $78 billion in defense spending over five years.  The largest savings would come from shrinking the size of the Army by 27,000 soldiers and the Marines by 15 – 20,000 in the year 2015.  That assumes the war in Afghanistan will be over for the U.S. by the end of 2014.

If you’re going to cut defense spending it makes sense to slash ineffective pet programs, of which the Pentagon has many, rather than funds for ongoing operations in Iraq and, especially, Afghanistan.  I don’t agree with our current strategy in Afghanistan, but if we have troops in harm’s way we have  a moral obligation to fully fund them.  Anyone who has worked in the Pentagon has seen these pet programs and inefficiencies, though Secretary of Defense Robert Gates has made some significant progress in streamling Pentagon operations.

Thinking about the defense budget in a vacuum is strategically unsound but a common practice in Washington.   A budget is required to help an organization achieve its objectives; a budget is a means to an end.  So this begs the question:  what is our grand strategy?  Rather than reflexively opposing cuts to the defense budget, conservatives should not cower from reasonable cuts to the defense budget.  Any analysis should consider the following four questions:

  • For what reasons does America engage in foreign affairs?
  • What are America’s national interests?
  • What are the threats those interests?
  • What is America’s grand strategy?

The answers to these questions will determine what kind of military is required to support these ends and how much it will cost.  I believe that our current grand strategy is too costly and disconnected from the national interest and Constitution.  I recently laid out my vision for a conservative foreign policy in the Washington Examiner in a piece entitled, “It’s time to end big government internationalism.” In it I argued:

Since the end of the Cold War, American statesmen have defined the national interest in far too broad of terms, squandering taxpayer dollars in support of a foreign policy that does not clearly advance America’s core national interests.  In FY 2008, Washington provided foreign aid to about 154 countries.  Today, the U.S. military has a presence in about 150 countries.  The majority of these aid packages and military deployments do little to promote America’s national interests; still, this type of big government internationalism has become unquestioned convention for the Washington foreign policy establishment and conservatives are as guilty as their liberal counterparts in pushing the global welfare state.

Many Republican and Democratic policymakers conflate American diplomatic, economic, and military primacy with omnipotence.  As a result, they have consistently failed to reconcile America’s desired end states with its available means—eschewing important economic realities such as the $14 trillion national debt while failing to make the difficult tradeoffs often required of effective statesmen.  In order to avoid the fate of previous great powers, the United States should adopt an economically sustainable grand strategy that advances a set of more narrowly defined national interests, encourages burden-sharing among its allies, and is consistent with the Constitution.  More specifically, Washington should reduce its global footprint, keep its military power in abeyance, and discharge that power only in defense of the national interest.

The sole aim of Washington’s international engagement should be the preservation of American political and economic liberty—not to remake the world in its image.  In his book, A Foreign Policy for Americans, former U.S. Senator Robert Taft argued, “I do not believe it is a selfish goal for us to insist that the overriding purpose of all American foreign policy should be the maintenance of the liberty and peace of our people of the United States…”

So where would I cut?  I would do a few things right off the bat.  I would redeploy the 50,000 military personnel we currently have in Europe (it costs serious money to train, equip, and sustain forces in a foreign country).  Correspondingly, I would scale back our commitments to NATO.  NATO is a military alliance without a clear mission.  It achieved its Cold War-era objectives, but it is no longer useful in the 21st century; it should be replaced with bilateral or smaller multilateral alliances to increase burden-sharing and reduce the stress on the U.S. force.  The alliance’s biggest test in recent years–Afghanistan–has yielded disappointing results.  The International Security Assistance Force (ISAF)–the NATO military organ in charge of operations in Afghanistan–places the vast majority of the burden on the U.S.  Some troops have quipped that ISAF really stands for “I saw an American fight.”

I would also adopt a new strategy in Afghanistan, one that significantly reduces our land (conventional ground forces) commitments and emphasizes special operations forces and airpower.  In terms of major acquisition programs, I would initiate a sweeping program review to weed out costly programs which are not required to achieve our military and defense policy objectives.  Each military service has pet programs which continue to exist more because they embody the service culture (read U.S. Air Force and the F-22) than actual military requirements.  Weapons acquisition must be driven by military requirements, not service cultures or Capitol Hill politics.

Defense is one of the few legitimate responsibilities of the federal government.  There are many other programs, which are well beyond the scope of the government’s responsibilities, which should be eliminated all together to address our dire fiscal situation.  Conservatives need to realize, however, that there is nothing unconservative about reasoned and rational cuts to the defense budget.  The fact remains that there is waste in the Pentagon and part of that waste stems from an overly costly grand strategy, one that is disconnected from America’s core national interests.  Republicans in Congress must think very carefully about this nation’s involvement in foreign affairs and whether our current strategy is appropriate.  The Tea Party movement should take this opportunity to extend its limited government message to U.S. foreign policy.  Without pressure from the Tea Party movement, many Republicans will shrink from this challenge.

February 16, 2011 at 3:15 pm

It’s the Oil, Stupid

To borrow a line from James Carville, it’s the oil, stupid.  Much of the commentary on the Egyptian uprising has failed to address the underlying strategic issue for United States foreign policy:  our dependence on Middle Eastern oil.  It is our continued dependence on Middle Eastern crude oil that compels Washington to remain deeply engaged in a region which, according to poll after poll, is rabidly anti-American.

Relative to other states in the region, Egypt is not a major oil exporter.  But Egypt has been a stable ally of the U.S. in a turbulent region for the last thirty years.  Egypt fought alongside U.S. forces during the Gulf War and has honored its peace treaty with Israel, thus preventing another major regional war between the Arab states and Israel—which would be calamitous for global energy prices.

Today, as it has been for the last thirty years, stability remains our core interest in Egypt.  Instability creates uncertainty and uncertainty means higher gas prices for Americans.  Four-dollar-a-gallon gasoline will slow America’s anemic economic recovery even further.  Can you imagine what six- or eight-dollar-a-gallon gasoline would mean for America’s ailing economy?

Former White House chief of staff Rahm Emanuel famously remarked, “You never want a serious crisis to go to waste.”  Washington policymakers should use the crisis in Egypt to initiate a three-step approach to ensure stable gas prices in the near-term and energy independence in the long-term.

1.       Washington must support the outcome that results in near-term stability. This means that the Obama administration should not support a hasty transition to a democratic form of government which could see the rise of belligerent forces such as the Muslim Brotherhood.  Of course there is a natural tension here for Americans who are rightly inclined to support self-determination, but this is one instance where the stability provided by a benign dictatorship (like that of former Egyptian President Hosni Mubarak) is preferable to the democratic rise of an Islamist government.  Mubarak’s civilian dictatorship provided relative stability for decades in Egypt; only time will tell whether the new military dictatorship is benign or malignant.  Washington should support a deliberate transition to increase the likelihood that the new popularly elected government is a pro-Western, democratic regime.

2.       Washington must take steps to weaken the price-fixing OPEC. It must no longer be the policy of the United States to tolerate the price-fixing Organization of the Petroleum Exporting Countries (OPEC).  For far too long the international community has allowed this cartel to set the price of oil at artificially high levels.  At its best, the interests of these countries are orthogonal to Washington’s; at its worst, as in the case of Iran and Venezuela, member countries actively work against the interests the United States.   Lest we forget that the 1973 energy crisis occurred when OPEC refused to ship oil to states that supported Israel in the Six-Day War.  The U.S. should explore the prospects of entering into exclusivity agreements with member states to fracture the cartel.  If Country X can proffer more from an exclusive arrangement with Washington than with OPEC, why remain a member?  Don’t forget that many of the OPEC members have single commodity economies; without oil exports their economies would collapse.  Washington needs to use this blunt reality as bargaining leverage.

3.       Washington must make energy independence a national security priority. It remains popular for politicians to talk about “energy independence” but the reality is that U.S. energy policy has not undergone the changes required to put this country on a path toward energy independence.  The Obama administration has declared war on the coal industry through its proposed cap-and-trade legislation (and likely forthcoming EPA regulations); the licensing process for building new nuclear power plants has not been accelerated and the administration refuses to grant additional offshore drilling permits.  What is required is an integrated energy strategy which includes the expansion of offshore drilling and a significant increase in the development of nuclear power, along with an expansion of natural gas, solar, and wind sources.   Washington should use tax policy to incentivize to automakers to make hybrid automobiles more affordable.  Nuclear power is perhaps the greatest untapped resource in the United States.  France generates more than 75% of its electricity from nuclear power while the United States generates only 20%.  Nuclear power suffered a public relations crisis during the Three Mile Island incident from which the industry has never fully recovered.  The reality is that the United States Navy has been using nuclear propulsion safely since the late 1940s and if Washington is going to cast off the yoke of energy dependence, then nuclear power must be dramatically expanded.

Energy independence is both an economic and national security issue and the situation in Egypt underscores this point.  Our dependence on foreign oil requires that we engage in a dangerous and hostile region; this reality has guided U.S. foreign policy for too long.  This trend is reversible but requires immediate action at the highest levels of the U.S. government.

February 15, 2011 at 11:46 am

In Defense of Mitch Daniels

God Bless them both but Rush Limbaugh and Mark Levin are dead wrong on Governor Mitch Daniels.  I’ve listened to Rush for almost a decade and Levin for several years now, and I enjoy them both but their commentary on the Indiana governor is counterproductive for conservatives and is based more on a knee-jerk reflex than an evidentiary claims.  What is more, they’ve lost sight of the critical question for conservatives as we approach the 2012 presidential election:  who is the most conservative candidate with the most viable path to 270?

For whatever reason, the talk radio giants have elected to mischaracterize Mitch Daniels’s record when it comes to the “social issues,” seizing on Daniels’s “truce” comment from last year.  Sound bites aside, as Indiana blogger Josh Gillespie notes, the governor’s ”record on pro-life issues has been immaculate.”  Mike Fichter of Indiana Right to Life further testifies to the governor’s steadfastness in supporting pro-life legislation (see sound clip “Gillespie on FTRradio.com”).

Daniels’s record is one of a firmly pro-life politician.  Gillespie notes that one critic of Daniels’s “truce” comment concedes, “Few would claim that Gov. Daniels is a social liberal.  In fact, he has a good track record on social issues.”  The “truce” comment is really a matter of rhetorical emphasis.  Daniels is pro-life and his record proves that.  But Daniels is not Gary Bauer.  He is going to spend the bulk of his time talking about this nation’s fiscal crisis and proposing serious, albeit sometimes politically unpopular, solutions.  What do you get with Mitch Daniels?  A competent executive with a proven record as a governor who has a laser beam focus on the national debt.

Will he support pro-life legislation?  Will he re-institute the Mexico City policy?  Will he appoint strict constructionists to the bench?  His record gives me confidence that he would do all of these things as president.  I urge my fellow conservatives to look at the record before making knee-jerk judgments based on 10-second sound bites.

February 14, 2011 at 5:45 pm

Obama’s Reckless $3.73 Trillion Budget

Today President Obama submitted his FY2012 budget to Congress and the numbers are staggering.  The president had a real opportunity to provide leadership and make good on his promise to begin to address America’s fiscal crisis.  But for all the president’s talk of fiscal responsibility and a renewed commitment to deficit reduction, the proposed budgets lacks any meaningful cuts, though the White House purports that it will cut the budget by $1.1 trillion over the next decade.  This figure assumes very optimistic rates of growth for the economy–rates of growth most serious economists would refute.  According to Bloomberg News, “The deficit for the current fiscal year is forecast to hit a record $1.6 trillion — 10.9 percent of gross domestic product — up from the $1.4 trillion the administration estimated previously.”  The budget also proposes a series of new tax increases, confirming that the Obama administration still believes that they can tax their way out of this fiscal crisis.  This is where the Obama administration is sorely mistaken:  we do not have a revenue problem; we have a spending problem.  Rhetorically, the president acknowledges that we have a spending problem, yet he irresponsibly continues to add to the debt as if there were no consequences to massive indebtedness.  His rhetoric is simply inconsistent with his actions.  He is a tax and spend liberal Democrat and his latest budget is further confirmation of this fact (as if we needed any additional evidence). 

The president’s budget plan fails to make any meaningful reforms to entitlements (Medicare, Medicaid, Social Security) which accounts for roughly 40% of the annual budget.  What is more, Obama doesn’t include any of the recommendations from the much-heralded debt commission which he established.  “The only way we can make these investments in the future is if our government starts living within our means,” Obama said of his proposed budget. “What we’ve done here is make a down payment.”  This is doublespeak at its worst; he preaches about fiscal responsibility while in the same sentence pushing for new spending.  We simply don’t have the money to pay for any of this; we can’t even cover this year’s budget.  I’m not a mathemetican, but you can’t tell me that 2 plus 2 = 5 and expect me to believe it.  The budget proposes an 11% increase in education spending.  The Department of Education should be abolished; federal involvement in the education system has resulted in no measurable enhancements in the delivery of education.  Education should be left to the states. 

The administration continues to perpetuate the idea that we can tax ourselves out of this crisis.  Americans for Tax Reform (ATR) conducted analysis of the president’s FY2012 budget and identified a number of new tax increases including raising the top marginal income tax rate from 35% to 39.6% and raising the capital gains and dividends rate from 15% to 20% along with a host of other tax increases which represent a $1.5 trillion tax hike over the next decade.  Just what a weak economy needs:  more taxes. 

This budget isn’t even close to addressing America’s fiscal crisis.  Obama’s talk of “tough choices” is pure fiction.  The president took the low road here and did what was easy, dressing up a financially irresponsible budget in courageous rhetoric.  But this budget required no political courage and offered no leadership.  The Republicans need to chop a lot more than $100 billion from this behemoth.  What House and Senate Republicans need to do is adopt Sen. Rand Paul’s plan which would cut $500 billion from the budget in FY2012.  Paul’s plan, which has been criticized by Republicans and Democrats alike as a bridge too far, would trim the projected $1.6 trillion budget deficit by just one third.  How can anyone claim to be serious about deficit reduction and then say that Paul’s plan is too aggressive?  Certainly not anyone who owes their election to the Tea Party, I hope.

© 2011 Hope is Not a Foreign Policy: Conservative commentary on foreign policy, American politics, and current events