Rothfus Blog

Corporate welfare. Crony capitalism. Whatever you call it, the harm resulting from government interference in the free market is but one example of what can go wrong when government gets into matters beyond its expertise. The evolving scandal concerning the solar panel company Solyndra, which recently went bankrupt after wasting a $535 million stimulus-funded, taxpayer-backed loan, is the latest evidence of big government run amok.

Thirty years ago this past January, during his first inaugural address, Ronald Reagan uttered one of his more memorable quotes: “In this present crisis, government is not the solution to our problem; government is the problem.” Later he made clear, however, that he was not calling for the abolition of government, but the restoration to its proper role:

Now, so there will be no misunderstanding, it's not my intention to do away with government. It is rather to make it work -- work with us, not over us; to stand by our side, not ride on our back. Government can and must provide opportunity, not smother it; foster productivity, not stifle it.

How far we have come since that mild January morning 30 years ago. Over the past three years in particular, we have seen an expansion in Federal power rivaling, if not surpassing, that of the 1930s. And the results have not been good. Here are but a few examples:

• A $700 billion dollar bank bailout (the so-called Troubled Asset Relief Program) that was written so poorly one could drive a GM truck through it;
• A cram down of car company bankruptcy settlements that violated the rights of secured creditors but gave favored treatment to politically-connected parties;
• A nearly trillion dollar stimulus that produced none of the promised jobs but resulted in a debt blowout and scandals such as Solyndra;
• A takeover of the nation’s health care system;
• A government-backed illegal gunrunning program that put weapons in the hands of notorious Mexican drug gangs resulting in the deaths of Americans and Mexicans alike;
• Federal agencies like the NRLB, EPA and newly empowered Dodd-Frank bureaucracies micromanaging various aspects of the economy resulting in billions of dollars of costs.

We’ve had three consecutive annual Federal deficits in excess of one trillion dollars. Unemployment has been at or above 9% for 27 of the last 29 months. Now President Obama proposes a new jobs bill repeating the same failed policies. Mr. President – to paraphrase your predecessor of 30 years ago, your proposals are not the solution; they are the problem.

In his first inaugural address, Reagan warned about abandoning ourselves to a government by elites:

"From time to time we've been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. Well, if no one among us is capable of governing himself, then who among us has the capacity to govern someone else?"

But if government is the problem, what is the solution? The solution is a return to the limited government vision of the Founders, as such vision has been legitimately amended from time to time in the manner prescribed by the Founders. At the Federal level, every action taken by the Federal government should be scrutinized to see whether it lies within the limited powers delegated to it in the Constitution.

Only when government acts within its legitimate sphere does it stand the chance of being good government. When it’s outside that sphere, the results tend not to be pretty.

This week we learned that the United States has hit its national debt limit. Republicans are demanding spending cuts before any agreement to raise the debt ceiling.

Like a credit card holder running up the charges, out-of-control Federal spending put us on a collision course with the debt limit – a whopping $14.294 trillion. The last increase in the limit was the result of a spending binge that saw a 60% increase in the debt between 2007 and 2010, from $8.7 trillion to $14 trillion. Unlike a credit card holder, who must pay down debt once his or her limit is reached, the Federal government has routinely rejected the option of cutting spending.

Congress and the Obama Administration need to make a dramatic shift in direction. Treasury Secretary Geithner has voiced, however, his preference for unrestricted spending (i.e., a “clean vote” on raising the debt limit) and has warned that failing to increase the debt limit will result in the United States defaulting on its debt obligations.

No one wants to see the United States default. Such a default would seriously damage the United States’ credibility and drive up interest rates. Recently, administration officials suggested that without a debt-limit increase, a default could occur by August 2.

Despite Secretary Geithner’s call for a “clean vote,” successive administrations and Congresses have demonstrated that our rulers cannot be trusted with an unrestricted increase in the debt limit.

As deals begin to form on spending cuts and raising the limit, a warning: the history of promised spending cuts warrants skepticism. In 1982, Democrats insisted that President Reagan raise taxes as part of a deal to cut spending. For every dollar in tax increases, Democrats agreed that they would cut spending by three dollars. The spending cuts never happened. The same thing occurred when President Bush the first, in 1990, infamously broke his “no new taxes” pledge and agreed to a deal to raise taxes if the Democrats cut spending. Again, the spending cuts never happened.

Any increase in the debt limit must include a path that takes us back from the cliff. That means real, not illusionary cuts, in budget outlays for the current fiscal year (yes, more cuts than the alleged $38 billion agreed to weeks ago), and cuts for fiscal years for which this Congress bears responsibility (2012 and 2013).

In addition, there must be debt-limiting mechanisms enforceable in future years. For starters, Congress must pass a balanced budget amendment. What will not work are plans that Congress can easily circumvent, such as the Gramm-Rudman framework of the 80s and 90s or today’s so-called Pay-Go rules that are constantly set aside.

Our elected leaders must make the hard decisions over the next several months to cut spending. Congress needs to act deliberately to ensure the continued solvency of the United States, and to protect future generations from free-falling standards of living that an unchecked spending and debt binge will produce.

A recently released NBC/WSJ poll showed that a majority of Americans want to extend, at least temporarily, the 2001 and 2003 tax cuts for all taxpayers, including those in the upper bracket. 71 percent of those polled said it would be acceptable to maintain all the cuts until the economy perks up, while roughly half would be fine with a permanent extension.

The Democrats, of course, are on the opposite side. But that should not be a surprise. This administration and Democrat-led congress have been trying to force-feed the American people their ideological pabulum for over eighteen months. Despite our better instincts, they've jammed ill-conceived healthcare and financial reform down our throats. They've tried their best to saddle us with an absurd Cap and Trade scheme that would be economic armageddon. They continually attempt to pass broadly unpopular legislation that only panders to their constituent groups. For example, they're working hard to eliminate the secret ballot from union elections. They continually vote to bailout the teacher's union, and they kick and scream about doing what's necessary to address the very serious immigration problems we are facing.

Is it any wonder, then, that a staggering nearly 60 percent of the people believe the economy is on the wrong track, and an equally mind boggling 64 percent predict that we've yet to hit bottom? It's time to end the nonsense and elect people who have the best interests of the entire country at heart, rather than a desire to reshape America according to their radical left-wing ideals. Let's remember what's made our country great. Vote for people who will stop the cronyism and put us on a path to prosperity for all.

If you’re not convinced that elections matter, consider the rhetoric coming out of Democrat circles. Their apoplexy over the utter failure of Obamanomics and its upwards of $2 trillion in failed stimulus spending is leading them to suggest some rather “interesting” next steps.

In their ultra-liberal minds, the problem is not that they’ve spent unprecedented amounts of money (times 10); it’s that they have not spent enough. Can you imagine a congress after the 2010 midterm elections that would inflict more of the same fiscal insanity on the economy and American people? Liberal thought leaders, like Paul Krugman and Robert Reich, argue that the stimulus should have been at least double the size that was actually passed. Amazing. Believe it or not, Reich is arguing for a Depression-era-like Works Progress Administration (WPA) program. If you recall, the WPA was a big government program instituted to hire millions of the unemployed.

Apparently, some things never change with the Democrats. They didn’t trust the free market during the Depression, and thus prolonged it substantially—and they don’t trust it now. So, we all have to pay the price because they are blinded by a discredited government-first orthodoxy.

Elections do matter. Let’s put an end to the big government craziness and install representatives who understand fiscal restraint, pro-growth initiatives, and the free market.

Big government is on the march again. On Thursday, the Senate passed a $4.5 billion childhood nutrition bill. Is there nothing that is out of the purview of President Obama and this congress? Why is this an issue for the Federal government? This is a classic matter better left to the states. Unfortunately, it is just one more example, in a seemingly endless list, of a congress without discipline. Yet another body blow to Federalism.

Is this a congress we can trust to substantially cut spending, reform entitlements, and dramatically reduce the deficit and debt? Of course not. We need strong conservatives who will stand up and fight against these feel-good spending programs that do nothing more than erode our liberty and mortgage our future prosperity.

Missouri voters just overwhelmingly rejected, albeit symbolically, the healthcare provision that requires everyone to carry insurance.  People all over the country are recognizing the healthcare care law, and many other acts by the Obama administration and Democrats, for the massive intrusion on liberty that they represent.  It is important to remember that as expensive and sovereignty-threatening as these big government initiatives are when initially enacted, they get much, much worse over time.

For example, in 1966, Medicare cost $3 billion.  It was estimated that by 1990, allowing for inflation, the cost would rise to $12 billion.  The actual cost in 1990:  a staggering $107 billion--nearly a 900% underestimation!  Today, Medicare’s costs and unfunded liabilities run in the trillions. 

Big government programs only get bigger, eventually choking our economic vitality and threatening our prosperity.  A liberal Jason Altmire has shown absolutely no proclivity for stopping this massive government incursion.  He certainly has not stood up to fight his party leaders to halt the big government policies.  We need an aggressive champion for limited government who will work to enact pro-growth policies.

This week, Senator Harry Reid crystallized why it is so important to elect true conservatives. Speaking to a group of liberal activists, Reid said, “We’re going to have a public option; it’s just a question of when.” Related sentiments were conveyed by President Obama and Speaker Pelosi, who ostensibly said: We’ve pushed forward part of our program, but there is a lot more to be done.

So, if you can’t fathom any further intrusions by this big government administration and congress, just wait; they’ve only begun. It clearly does not matter to them that their agenda is counter to the will of a significant majority of the people. Their far left liberal ideology trumps all. We must elect people who will put forward a pro-growth, limited government prescription for prosperity, and not stand idly by while the out-of-touch Democrats foist more and more government upon us.

Jason Altmire and the Democrats were just born to spend.  Whether it be on big ticket programs or small, they just can’t seem to help themselves.  Altmire just voted NO on a proposal that would cut the first-class sleeper subsidy on Amtrak.  For those who may be unaware, federal taxpayer dollars grant a significant subsidy to those who opt for “sleeper class” travel, as opposed to coach class.  These passengers are provided with a sleeping room (many of which include private facilities), turn-down service, complimentary entertainment, and pre-paid food.  Not surprisingly, Amtrak loses more than twice as much per passenger ($396)for this first class service as compared to coach service.  This additional subsidy would add another $1.2 billion over ten years to the ballooning debt.

How can we possibly expect Altmire and his Democrat colleagues to dramatically cut spending when they can’t even bring themselves to make the simple cuts? 

This week, President Obama signed a bill, adding tens of billions to the national debt, further extending unemployment benefits.  How serious can the Obama administration, Jason Altmire, and their liberal Democrat cohorts be about cutting the deficit when they refuse to pay for this $34 billion expenditure out of a nearly $3.8 trillion proposed budget?  Perhaps they are simply incapable of cutting  an extremely bloated budget by less than 1%--a budget they’ve increased by more than 22% since Bush left office?  Is this a party we should trust with control of the purse strings?

Recall that in November of last year, after signing the previous unemployment benefits extension, Obama said:  "Now, it's important to note that the bill I signed will not add to our deficit. It is fully paid for, and so it is fiscally responsible."  Apparently, he’s acknowledging that yesterday’s extension is not fiscally responsible.  Just more hypocrisy on spending from Altmire and the ‘do as I say, not as I do’ Democrats. 

 

This Independence Day weekend certainly does not bring a respite from campaigning—I am in the midst of a busy four-day stretch of appearances in more than a dozen communities from one end of the district to the other.

I hope that you will find time for moment of reflection this weekend.  Two hundred thirty-four years ago, the signers of the Declaration of Independence set in motion the world’s longest and most successful experiment in self-government.  Their courage as they pledged their “lives, fortunes, and sacred honor” in Philadelphia shaped the American idea in a fundamental way.

The heated political debates of the moment—and they are heated for the simple reason that the stakes are indeed high—would not be possible without the conviction that animated the Declaration of Independence that individuals and communities can and have a right to shape their own destiny.

In the America that was forged by those ideas, we all tend to that kind of freedom for granted.  I hope that you enjoy what Americans once called without irony “the glorious Fourth” with family and friends and remember just how precious the freedoms we celebrate today are.