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Tuesday, July 26, 2011

Liberty or Tyranny

“Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take, but as for me, give me liberty, or give me death!” — Patrick Henry

Those words of Patrick Henry were issues some 235 years ago and they are ringing more than ever true today. A more contemporary of Patrick Henry, Ronald Reagan said; “Freedom is never more than one generation away from extinction. We didn't pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.”

Several years ago Mark Levine wrote a million seller book entitled Liberty and Tyranny Levin goes on meticulously (many more than 300 endnotes), but plainly explaining the principles of classic conservative philosophy of "prudent" progress, a government that is subservient to the people (rather than the other way around), the fundamental truth that rights are not derived from the government but from a higher power, that the free market system more than any other in history provides the best, most efficient and most just opportunity for individual prosperity as well as for the general welfare, and much more.

Levin's book provides ample evidence of government encroachment on individual liberty and our country's descent into the soft tyranny warned of by Alexis de Tocqueville in our country's earliest years. Economic regulation, environmental extremism, the usurpation of representative government by the judiciary, unprecedented and uncontrolled illegal influx of people into our country, and the like threaten our economic viability. Finally, Levin's book details how the liberal (and some so-called conservative) political elite rejects the notion of American Exceptionalism and seek to surrender voluntarily the sovereignty our forefathers fought and died to give and to preserve for us.

I was so impressed with Levine’s logic and knowledge of the principles of our Founders that I read the book twice and then passed in on to family members to read. Levine’s book along with the works of Bastiat, Hazlitt, Hayek , von Mises, Adam Smith and Ayn Rand should be required reading in any high school or college curriculum as they give us a clear and logical argument for personal and economic liberty and what it means to our nation.

My daughter gave me the DVD of the HBO miniseries John Adams for my recent birthday. This, like the books I mentioned, ahold also be required viewing in high school classes as long as the teacher does not have a left wing agenda and understands what our founding fathers went through to gain our independence from the British Crown and give us a constitutional republic. The casting, dialog and costuming were nothing less than terrific as the series walked us through the period from 1775 to 1826 when Adams and Jefferson died on the same day — July 4, 1826. The series showed how our Founders struggled with the issues economic and person liberty as they developed a republican form of government that would insure for posterity a land where men and women could be free to live their lives without the tyranny from the government.

Over the past two decades we have been losing more and more of our liberty to big government programs. These programs are based on plundering one segment of the population for the benefit of another segment. This plunder has put more and more power in the hands of the central government as politicians vie for the votes of the recipients of the plunder. This is how dictators gain power, they turn class against class and in the end everyone suffers.

Across America it seems chaos and government oppression are the new order.

Violent mobs are gathering in cities large and small and looting stores and terrorizing communities and theme parks. Thieves are stealing air conditioners from churches and schools, manhole covers from streets, copper from electrical substations, street signs from city roads and hay from petting zoos. Home and automobile burglaries are being reported in increasing numbers.

Local police officers are becoming more militarized and more dangerous and oppressive, arresting people for photographing landmarks and detaining them for taking video of trains, train stations, public buildings and interactions with public figures. When serving warrants, no longer do officers knock on the door and give the subject of the warrant an opportunity to comply. The new normal is to crash through the door with guns drawn, prepared to shoot anything that moves, according to a report by the CATO Institute. The executive summary of the CATO white paper states:

“Americans have long maintained that a man's home is his castle and that he has the right to defend it from unlawful intruders. Unfortunately, that right may be disappearing. Over the last 25 years, America has seen a disturbing militarization of its civilian law enforcement, along with a dramatic and unsettling rise in the use of paramilitary police units (most commonly called Special Weapons and Tactics, or SWAT) for routine police work. The most common use of SWAT teams today is to serve narcotics warrants, usually with forced, unannounced entry into the home.

These increasingly frequent raids, 40,000 per year by one estimate, are needlessly subjecting nonviolent drug offenders, bystanders, and wrongly targeted civilians to the terror of having their homes invaded while they're sleeping, usually by teams of heavily armed paramilitary units dressed not as police officers but as soldiers. These raids bring unnecessary violence and provocation to nonviolent drug offenders, many of whom were guilty of only misdemeanors. The raids terrorize innocents when police mistakenly target the wrong residence. And they have resulted in dozens of needless deaths and injuries, not only of drug offenders, but also of police officers, children, bystanders, and innocent suspects.”

The health police have run amuck. In Detroit, a woman had her daughter taken away by a SWAT team because she decided the treatment a doctor had prescribed was doing more harm than good. It took more than a month for the courts to overturn the actions by the Michigan Department of Human Services and release the daughter from the “protective custody” that resulted in her being sexually assaulted, according to an attorney representing the girl.

In 2009, during the run-up to passage of ObamaCare — a proposal that more than 60 percent of Americans opposed at the time — Congress ignored its rules of procedure and mocked opponents who gathered outside the Capitol building protesting. Congress, which is supposed to represent the will of the people, instead represents its own interests and those of the corporations that fill campaign coffers.

Even now — in negotiation over raising the debt ceiling by imposing higher taxes rather than making significant spending cuts — it is opposing the will of Americans who elected a Republican majority in the House hoping to see reduced spending in Washington.

The effect of the battle in Washington, which has nothing to do with doing what is right for America and everything to do with enriching and entrenching the political elites and their cronies, is trickling down to local government. The Federal government has long been a thugocracy, but now we are seeing the thugocracy metastasize like a cancer.

In Quartzite, Ariz., city council members had police wrest the microphone from a woman who had been given the floor. Jennifer “Jade” Jones, a gadfly described as a blogger and vocal critic of local government, was apparently bringing up subjects the council didn’t want to hear. Or didn’t want the public to hear.

After a video went viral that showed the police officers obeying their superiors on the council — and ignoring Mayor Ed Foster’s demands to let Jones speak — Police Chief Jeff Gilbert encouraged the council to declare a state of emergency. They did so following a closed meeting that some believe violated the State’s open meetings laws.

Things are apparently just as bad in Gould, Arkansas, where the city council has decided the Bill of Rights doesn’t apply.

A new ordinance passed there bans the Gould Citizens Advisory Council from doing business in Gould because it “is, in effect, causing confusion and discourse among the citizens of Gould and as a result is contributing to the friction not only between the Mayor and Council but also among the citizens who deserve a cooperative government. Also no new organizations shall be allowed to exist in the City of Gould without approval from a majority of the City Council,” according to the ordinance.

University of Arkansas at Little Rock Law Dean John Pippa told Fox16: “I couldn’t believe that it was real when I first read it. The truth is, the city of Gould doesn’t have the authority to tell anyone that they have no right to petition them, no right to speak and no right to exist in their city.”

“That’s why you have a higher court,” Council member Sonja Farley told Fox16. “To keep order when people can’t keep order. That’s why you have a council.”

But now that council, according to its own ordinance, can’t lawfully meet and discuss city business with the citizens it supposedly represents.

Not even little girls or home gardeners are safe from the new thugocracy. In Midway, Ga., police put an end to a lemonade stand being run by three girls who were trying to earn money for a trip to a water park. The reason: They didn’t have a business license or the required permits (which would cost $50 per day or $180 per year).

Police chief Kelly Morningstar said police didn’t know how the lemonade was made, who made it or what was in it.

In Oak Park, Mich., Julie Bass faced jail time for growing vegetables in planters in her front yard. Vegetables are not considered suitable, live, plant material under the city’s code. A judge dismissed the charges; but then the city, in an obvious case of piling on, cited her for not having licenses for her two dogs that live inside her house.

The elected elites and bureaucrats occupying the halls of government no longer represent the people. They represent themselves and those who can give them the biggest favors.

In Alabama, some current and former legislators, lobbyists and two gambling magnates are on trial on bribery-related charges. The lobbyists, who agreed to testify as part of their guilty pleas, have described how they promised campaign cash, do-nothing jobs and other favors at the behest of the gambling magnates to legislators in exchange for support for a pro-gambling bill the gambling bosses supported.

Cash and favors in exchange for legislation are being portrayed by defense attorneys as standard operating procedure in Alabama. That’s certainly the case in Jefferson County, Alabama, where a number of county commissioners and county bureaucrats are serving sentences for corruption relating to financial shenanigans with big banksters that have left the county on the brink of filing the largest municipal bankruptcy in United States history (and you thought Bell, California was bad). Unfortunately, it seems none of the banksters will ever see the inside of a jail cell.

Governments hate freedom. But the laws they pass to “keep order” only create more chaos. It’s happening right now on a Federal level, where government and Federal Reserve policies have created an entitlement mentality, bubbles and busts leading to high unemployment, default, currency collapse, uncertainty and chaos.

In Washington, in Alabama, in Quartzite and Gould, and in towns and cities across the country, governments are ignoring Americans and creating more chaos, unrest and unhappiness. In response, citizens grow increasingly unruly. Many begin doing things they never would have considered before.

Gerald Celente was correct when he said: “When people lose everything and they have nothing left to lose, they lose it.”

We’ve already seen chaos in Europe and the Middle East. With rampant, long-term unemployment — the government’s skewed unemployment numbers show overall unemployment at 9.2 percent, but the rate is 16.2 percent for blacks — the loss of homes through foreclosure and class warfare being stirred up by politicians, is it any wonder that chaos is becoming the new normal?

As the chaos in our nation increases over our debt, spending, class warfare and greater control over our lives from Washington, D.C. the chaos will bleed into anarchy and anarchy will bring dictatorship. This has happened to every society in the history of mankind, from the Roman Republic to the Weimar Republic. This is what radicals like Saul Alinsky, Van Jones, Cloward and Piven, George Soros and Barack Obama desire. For it is only through this chaos and subsequent anarchy that their dreams of transformation can be realized. Once the people become so disenchanted and embroiled in class warfare they will look for a person on a white horse to lead them out of the chaos. The problem is that the person with on the white horse will be wearing the black hat of a tyrant.

Watching the nonstop commentaries on television about the debt ceiling debate only reinforces the reality that most people — including many perceived conservatives — still don’t get it. If they did, they would not allow themselves to be diverted by a political circus.

It amazes me how the vast majority of conservatives — both inside and outside of the media — still take Barack Obama seriously and believe he is desperately trying to save the United States from economic disaster. Don’t get me wrong. Obama wants to do what is right for America, but his vision of “right” is wealth redistribution on a massive scale carried out by an all-powerful Federal government.

As Obama continues to toy with Republicans over raising the debt ceiling, he is well aware that the continuation of his policies will destroy the U.S. economy beyond repair. I believe his strategy from the outset has been to follow the Saul Alinsky model: Win the Presidency through a semi-legitimate election, then tighten your grip over everything and everybody, move swiftly to create economic chaos, and use the chaos you’ve created to establish a dictatorship.

Now don’t go giving Obama too much credit for originality. He’s really just a slick and clever copycat. Getting elected and then using your powers to eliminate all competition is an old trick used by power-hungry thugs throughout history.

Of all the dictators over the past hundred years, I believe Obama’s rise to power mirrors that of Adolf Hitler’s more than anyone else. I know I can practically hear readers chuckling. Enslaved people throughout history have a propensity for chuckling — until they wake up one morning and find themselves in chains. So, by all means, feel free to chuckle — but do hear me out.

Though most people don’t realize it, Hitler was legitimately chosen to be chancellor of Germany in 1933 by President Paul von Hindenburg. At his swearing-in ceremony, Hitler faithfully repeated the oath of office: “I will employ my strength for the welfare of the German people, protect the Constitution and laws of the German people, conscientiously discharge the duties imposed on me, and conduct my affairs of office impartially and with justice to everyone.”

Nice words similar to those uttered by Obama when being sworn into office. Hitler was a charming, eloquent speaker who carried on incessantly about change. (Sound familiar?) Then, once elected, he moved quickly to establish a dictatorship, accomplishing that seemingly impossible feat in 52 days. Obama moved swiftly as well, but opposing forces in America made it impractical to establish a quick dictatorship.

The upstart Nazi Party (which was the commonly used name for the National Socialist German Workers’ Party repeat, Socialist) staged a slobbering love affair between Hitler and the German people. (Sound familiar?) When Hitler spoke for the first time as chancellor, it was said that he “was greeted with an outpouring of worshipful adulation unlike anything ever seen before in Germany.” (Sound familiar?)

In The Road to Serfdom, Frederick Hayek explained the way countries travel the road from democracy to dictatorship:

“It is important to remember that, for some time before 1933, Germany had reached a stage in which it had, in effect, had to be governed dictatorially… Hitler did not have to destroy democracy; he merely took advantage of the decay of democracy and at the critical moment obtained the support of many to whom, though they detested Hitler, he yet seemed the only man strong enough to get things done.”

Under the Articles of Confederation, the central government of America was very weak — which was a good thing. It was true then, and it’s true now: You can have a strong government and a weak people, or a strong people and a weak government — but you cannot have both. Today, we have a draconian, out-of-control government and a very weak people. A people looking to Washington for solutions and largess.

Arguably, democracy in this country started to break down in 1787 when the Constitution created a strong Federal government. This is why Madison wanted to include a bill of rights. It got worse — much worse — under the fascist policies of Woodrow Wilson’s reign from 1912 to 1920. Then, beginning in 1932, FDR’s failed socialist policies took away even more individual freedom from American citizens. And the final disintegration of true democracy in the U.S. was catalyzed by the left-wing revolutionaries of the 1960s.

So if you’re wondering how Obama and his Marxist cronies have been able to violate the Constitution as though it didn’t exist, the answer is that they are merely taking advantage of the decay of democracy in the U.S. that was already present when they came to power. While Americans have been busy focusing on sports, reality TV, eating out three nights a week and trying to pay their mortgages, the fascistic socialists in Washington have been quietly working to establish a dictatorship based on the ruins of our democracy (which actually began as a republic).

Get it? I hope so. Because if a vast majority of everyday folks don’t get it soon, it will be too late. As I have repeatedly said, the debt ceiling debate is nothing more than a distraction from the real, underlying problem we all face: We are losing our liberty.

Our focus should be on stopping Barack Obama and his Marxist allies in Washington from establishing a socialist dictatorship — politely referred to by conservative media commentators as an “imperial presidency.” But regardless of what one calls it, the important thing to understand is that under a dictatorship, everything else becomes irrelevant — including the debt ceiling “crisis” that political junkies are spending so much time fretting about. The one true fact about government is that it will do anything to protect its power.

Blame it on the Christians

“Cities may be rebuilt, and a People reduced to Poverty, may acquire fresh Property: But a Constitution of Government once changed from Freedom, can never be restored. Liberty once lost is lost forever. When the People once surrendered their share in the Legislature, and their Right of defending the Limitations upon the Government, and of resisting every Encroachment upon them, they can never regain it." — John Adams

Without one shred of evidence the New York Times, Washington Post and other media outlets were quick to blame the horrific bombing and shooting in Norway on right wing Christian fundamentalists. With tons of evidence and the words of the killer himself the same media, including the President of the United States and his sycophant attorney general said not one word that Nidal Malik Hasan was a Muslim extremist and a radical Islamists. Within minutes of the shooting in Tucson, Arizona the same main stream media was quick to blame Sarah Palin and the Tea Party for the deranged actions of Jared Lee Loughner, a man deemed incompetent to stand trial due to insanity.

The main stream media in his country is quick to blame tragedies like this on Christians and the right, yet still doesn’t believe Lee Harvey Oswald was a committed communist. News Busters reports:

The three major networks trumpeted the news this weekend that the man behind a mass shooting spree in Norway is also a Christian, highlighting the fact in eight different programs from Saturday through Monday.

The July 25 New York Times used page one to declare, "As Horrors Emerge, Norway Charges Christian Extremist." Yet, these same journalistic outlets were far more reticent to identify the religion of past Islamic killers.

On Saturday's Good morning America, Miguel Marquez trumpeted, "Police have identified the shooter as a 32-year-old Norwegian and Christian fundamentalist." He made sure to note Anders Breivik's "right-wing" and "anti-Muslim" views.

On Saturday's World News, Pierre Thomas informed, "His ideology? Religious conservative." A screen shot of Breivik's Facebook page read "Christian." Martin Fletcher on Saturday's Today freely related that the website illuminated the fact that "he's conservative, he's Christian."

But while the Times showed no reluctance to identify Anders Behring Breivik, the lone gunman in the Norway attacks, as a “Christian extremist” in a front-page headline and hinted at more danger from "right-wing extremists" in Europe the paper previously showed a clear reluctance to identify Islam after the last major terrorist attack on Europe, the deadly July 7, 2005 attacks by Muslim terrorists on subways and buses in London that killed 52. Instead the Times treated the attacks as British Prime Minister Tony Blair's "bitter harvest" for following President George W. Bush into Iraq.

In another report in the New York Times reported:

As stunned Norwegians grappled with the deadliest attack in the country since World War II, a portrait began to emerge of the suspect, Anders Behring Breivik, 32. The police identified him as a right-wing fundamentalist Christian, while acquaintances described him as a gun-loving Norwegian obsessed with what he saw as the threats of multiculturalism and Muslim immigration.

“We are not sure whether he was alone or had help,” a police official, Roger Andresen, said at a televised news conference. “What we know is that he is right wing and a Christian fundamentalist.”

In the 1,500-page manifesto, posted on the Web hours before the attacks, Mr. Breivik recorded a day-by-day diary of months of planning for the attacks, and claimed to be part of a small group that intended to “seize political and military control of Western European countries and implement a cultural conservative political agenda.”

He predicted a conflagration that would kill or injure more than a million people, adding, “The time for dialogue is over. We gave peace a chance. The time for armed resistance has come.”

The manifesto was signed Andrew Berwick, an Anglicized version of his name. A former American government official briefed on the case said investigators believed the manifesto was Mr. Breivik’s work.

The manifesto, entitled “2083: A European Declaration of Independence,” equates liberalism and multiculturalism with “cultural Marxism,” which the document says is destroying European Christian civilization.”

Breivik has been charged with going on a shooting rampage in Oslo, Norway. The death toll is currently in the mid-80s.

There are a number of examples, however, where journalists weren't quite so interested in a killer's religion.

In June of 2011, when Muslim Yonathan Melaku was caught in Arlington Cemetery with suspicious material and a notebook praising the Taliban, the networks him simply as "the suspect," "a 22-year old Ethiopian American” and a “lone wolf.” On November 05, 2009, CBS' Evening News and NBC's Nightly News both failed to identify Fort Hood shooter Nidal Hasan as a member of Islam.

The morning shows on November 6 did note Hasan's faith, but on GMA, then-host Diane Sawyer worried, "We heard Martha Raddatz say last night that the wife of a soldier said ‘I wish his name had been Smith,’ so no one would have a reflexive question about [a religious motive]."

This is an often repeated theme in the wake of extremist Islamic violence. Appearing on the May 04, 2010 Stephanie Miller radio show to talk about the Times Square bombing, MSNBC anchor Contessa Brewer fretted, "I get frustrated...There was part of me that was hoping this was not going to be anybody with ties to any kind of Islamic country”

Thus far, network hosts have not worried about how Breivik's Christianity could negatively impact members of that religion.

The networks, on June 2, 2009, spiked the information that it was a Muslim convert who shot to Army privates outside a Little Rock Arkansas recruiting office.

In total, Breivik's Christianity was mentioned on Saturday's Good Morning America and World News, as well as the Saturday, Sunday and Monday editions of Today. It was also highlighted on Saturday's Nightly News and that day's Early Show on CBS, as well as Monday's episode.

The only evidence of Breivik’s ties with Christianity came from a police report immediately following his arrest. His web site, while extremely anti-Muslim made no real mention of any ties with any organized Christian sect fundamentalist or otherwise. He is just a lone wolf nut who wanted to cleanse Norway of Muslims so he attacked his own people to make some sort of political statement. Like the Tucson shootings the media jumped on the statement of one Norwegian police officer to tag Christians as “extremists” bent on slaughtering innocent people. The only extremist to do this are radical Islamists who do this on almost a daily basis as it has been proved over and over again. this, however, does not prevent the main stream media from taking up the cause against Christians, who they do not like.

Another point in this tragic story is the Norwegian justice system If found guilty in the massacre and given that maximum sentence, Breivik, 32, would serve roughly 100 days in prison per killing. This is some punishment in liberal Norway for such a mass killer of innocent children.

Fox News Reports:

“So many innocent people have been killed that I think he doesn't have the right to live," Mari Kaugerud wrote on her Facebook group "Yes to the death penalty for Anders Behring Breivik," which already has 1,783 members, the AFP reports.

Dozens of similar groups have sprung up since Friday's killings, some calling for the death penalty, others for life in prison.

"People like that shouldn't be able to get out among normal people," a 31-year-old Iranian-born shopkeeper identified only as Mustafa told AFP. "If he gets 21 years, how old will he be? 53! No, he's ruined too much to ever get out."

Breivik is accused of the initial bombing in the capital of Oslo, as well as the subsequent shooting rampage at a Labor Party youth camp on an island outside the city. He is said to be an anti-Muslim extremist who left an online manifesto before carrying out the attacks.

The court ordered him held for eight weeks while prosecutors investigate, four of which will be in isolation, saying Breivik could tamper with evidence if released. Typically, the accused is brought to court every four weeks while prosecutors prepare their case, so a judge can approve his continued detention. Longer periods are not unusual in serious cases.

Breivik has confessed to both assaults but denied criminal responsibility for them and pleaded not guilty Monday. He told authorities there that he expects to spend the rest of his life in prison.

Norwegian law allows for a convict to spend more than 21 years locked up under certain circumstances, if a court deems the prisoner dangerous enough to keep behind bars for additional five-year stretches, AFP reports.

"But how many times will that happen?" Daniel de Francisco, a 25-year-old chef said.

Norwegian law professors, meanwhile, told The Daily Caller that they are proud of the county's lenient judicial system and hope it does not get altered in the wake of Friday's mass killings.

“I think it is very important to keep it that way, despite the gruesome events that have occurred now,” professor Thomas Mathiesen of the University of Oslo told the website. “Norwegian society will gain nothing from a higher punishment level. People of this kind will not become less prone to engage as this man did ... and the punishment level we have now will contribute to Norway staying the relatively humane society that we are proud of and want to live in.”

Another Oslo law professor, Nils Christie, told The Daily Caller that many Norwegians are proud to live in a country that emphasizes moderation in retribution.

"I hope, and believe, that we also this time will be able to stick to our ideals of moderation in punishment," Christie said told the website. "The preliminary reactions to these days of horror in Norway have been exposure of a strong urge to live up to our basic ideals of remaining an open welfare society based on humanity."

21 years for murdering 76 people. What a screwed up country Norway is. Norway is a country where policemen cannot carry a firearm unless given permission by their superiors prior to any instance where a firearm might be required. Even if a security guard or policeman had been at the youth political camp he or she would no doubt have been killed and protected no one. This is what liberalism does to a people. They are more concerned with social justice and a welfare state than with security and justice. Perhaps these lovers of the welfare state will take notice when the real world comes knocking at their door.

Monday, July 25, 2011

Elimination of the Department of Agriculture

"The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite. The former will be exercised principally on external objects, as war, peace, negotiation and foreign commerce. The powers reserved to the several States will extend to all the objects which in the ordinary course of affairs, concern the lives and liberties, and properties of the people, and the internal order, improvement and prosperity of the State." — James Madison

Not many people know what the Department of Agriculture does with its $152 billion dollar budget and 98,000 employees. They think that the USDA is their mainly to help farmers and pass out farm subsidies. While the part about passing out subsidies is true the part about helping famers is not. The USDA does much more than hand out billions in farm subsidies.

The Department of Agriculture provides an array of subsidy programs for farmers and imposes extensive regulations on agricultural markets. It operates food assistance programs, such as the food stamp and school lunch programs, and it administers many subsidy programs for rural parts of the nation. The Forest Service also forms part of the Department of Agriculture.

The department will spend $152 billion in 2011 or more than $1,200 for every U.S. household. It operates about 235 subsidy programs and employs 105,000 workers in about 7,000 offices across the country

In 1862 The U.S. Department of Agriculture was established by President Abraham Lincoln who called it the "people's department." That same year Congress passed the Morrill Act that provided grants of federal land to the states. The states were to use the proceeds of land sales to create colleges focused on agricultural studies (that’s how many colleges got the initials A&M tagged to their name).

In 1900 There were 11 million Americans employed on farms and 2,900 employed by the USDA. A century later there were 3 million employed on farms and 105,000 employed by the USDA. The following are a few of the more significant events on the timeline of the USDA:

The timeline for the USDA is quite detailed in a report by the CATO Institute and can be viewed by clicking here. I reading the timeline you will see how the USDA morphed from a governmental department that had a defined mission of assisting farmers into a massive bureaucracy that issues subsides, insurance, regulates farm lands, provides school lunches and distributes food stamps to 49 million Americans. The food stamp program is no doubt one of the larger wealth redistribution scams in the United States.

According to the CATO Institute:

“The largest portion of the U.S. Department of Agriculture’s budget consists of food subsidies, not farm subsidies. Food subsidies will cost taxpayers $79 billion in fiscal 2009 and account for about two-thirds of USDA’s budget. The largest food subsidy programs are food stamps; the school breakfast and lunch programs; and the women, infants, and children (WIC) program. The federal government as a whole has about 26 food and nutrition programs operated by six different agencies.

The USDA’s food subsidy programs developed out of the need to dispose of farm production deemed surplus under commodity price support programs. Today, food subsidy programs are supported by farm interests, anti-poverty groups, and organizations of state and local program administrators. Farm and food subsidy programs provide both rural and urban legislators reasons to vote for increased USDA funding.

Farm and food subsidies make political sense, but they don’t make economic sense. Farm policies that increase commodity prices harm the lower-income families that food subsidy programs are supposed to help. For example, federal dairy policies raise the price of milk, which works against the goals of the school lunch and food stamp programs. The solution is to repeal both farm and food subsidies, and allow open market competition to cut food prices for all families.

Food subsidy programs were designed to aid lower-income families, but the situation of those families has changed dramatically since the programs were instituted. The problem of insufficient calories for children in past decades has been replaced by growing obesity problems.2 Also, as the U.S. economy has grown, the incidence of poverty and hunger has declined. Despite those trends, food subsidy programs are serving more recipients and continue to increase in cost.”

The USDA is responsible for five egregious programs; Agricultural Subsides, Regulations and Trade Barriers, Rural Subsides, Food Subsides and The Forest Service. Each of these programs is detailed in the CATO Institute report.

All agricultural and rural subsidies in the Department of Agriculture’s budget should be abolished to save taxpayers more than $30 billion annually. In addition, agricultural trade barriers should be repealed. Current agricultural and rural policies are economically and environmentally damaging, and they create unfair transfers of wealth.

The department's food subsidy activities—food stamps, school lunches, and WIC—are properly local and private functions. They should be devolved to the states, with each state determining appropriate policies for its own residents. Such reforms would save federal taxpayers about $98 billion annually. Some states may decide to fund food subsidies on their own, but competition between the states would likely result in smaller, more innovative programs.

Forest Service subsidies to state governments and private businesses should be ended. Congress should also explore options to transfer the national forests to the states or to new independent trusts that would be self-funded from forest-related receipts.

According to the CATO Institute these reforms would eliminate more than 90 percent of the USDA’s budget, saving federal taxpayers $131 billion annually, or about $1,100 per U.S. household. Under the proposal, the USDA would retain responsibility for animal and plant health inspections, food safety, grain and packing inspections, and conservation activities. Any responsibility retained by the federal government for conservation and forest management and protection not transferred to the states should be moved to the Department of the Interior. The activities related to food safety and packaging could be transferred to the Department of Commerce.

The savings from eliminating the Department of Education and USDA would amount to 238 billion and eliminate 109,400 federal jobs with their unfunded liabilities for pensions and health care.

The Burst of the College Bubble

"Enlightened statesmen will not always be at the helm." — James Madison

I have written several time about the great college rip-off and the role the federal government has the massive inflation of the cost of college. For years the U.S. Department of Education (a department I would like to see eliminated) has been making and guaranteeing student college loans. With a guarantee of being paid by the federal government banks have been making student college loans for years. This is the same policy that caused the burst of the housing bubble. With the policy that everyone had a right to a home the banks lent money to unqualified buyers, who they knew were unable to pay the loan back, with the knowledge they could pass the loans off to Fannie Mae or Freddie Mac. This caused an increase in house demand and the consequential inflation in the price of houses.

Over the years the same game has been played with student loans for college. Colleges and universities have escalated their tuition fees with the knowledge that potential students could get government guaranteed loans. This allowed the colleges and universities to expand their facilities and hire more and more professors. In essence it was plunder of the students and taxpayers for the benefit of the colleges. In many cases students are graduating with over $100,000 dollars in debt that will take them years to repay for a college degree with questionable value.

Michael Barone writes in Human Events that the college bubble is on the verge of bursting. Barone writes:

“When governments want to encourage what they believe is beneficial behavior, they subsidize it. Sounds like good public policy.

But there can be problems. Behavior that is beneficial for most people may not be so for everybody. And government subsidies can go too far.

Subsidies create incentives for what economists call rent-seeking behavior. Providers of supposedly beneficial goods or services try to sop up as much of the subsidy money as they can by raising prices. After all, their customers are paying with money supplied by the government.

Bubble money, as it turns out. And sooner or later, bubbles burst.

We are still suffering from the bursting of the housing bubble created by low interest rates, lowered mortgage standards, and subsidies to Fannie Mae and Freddie Mac. Those policies encouraged the granting of mortgages to people who should never have gotten them -- and when they defaulted, the whole financial sector nearly collapsed.

Now some people see signs that another bubble is bursting. They call it the higher-education bubble.

For years, government has assumed it's a good thing to go to college. College graduates tend to earn more money than non-college graduates.

Politicians of both parties have called for giving everybody a chance to go to college, just as they called for giving everybody a chance to buy a home.

So government has been subsidizing higher education with low-interest college loans, Pell grants, and cheap tuitions at state colleges and universities.

The predictable result is that higher education costs have risen much faster than inflation, much faster than personal incomes, much faster than the economy over the past 40 years.

Moreover, you can't get out of paying off those college loans, even by going through bankruptcy. At least with a home mortgage, you can walk away and let the bank foreclose and not owe any more money.

Peter Thiel, the co-founder of PayPal, is adept at spotting bubbles. He sold out for $500 million in March 2000, at the peak of the tech bubble, when his partners wanted to hold out for more. He refused to buy a house until the housing bubble burst.

"A true bubble is when something is overvalued and intensely believed," he has said. "Education may still be the only thing people still believe in in the United States."

But the combination of rising costs and dubious quality may be undermining that belief.

For what have institutions of higher learning done with their vast increases in revenues? The answer in all too many cases is administrative bloat.”

Private colleges and universities have been discounting tuition at unprecedented levels during the recession in a way that slowed down or reversed the growth in net revenue from tuition, according to a new report from the National Association of College and University Business Officers. The discount that surveyed colleges and universities offered for full-time, first-year students through grants and other forms of need-based and merit aid hit an all-time high of 42.4 percent in 2010, a jump from about 39 percent in 2007. The report estimates that 88 percent of students at the institutions surveyed received some institutional aid, and those students paid about half of the college or university’s sticker price.” So if you’re paying full tuition, you’re basically a sucker.

According to a report in Inside Higher Ed:

“The discount that surveyed colleges and universities offered for full-time, first-year students through grants and other forms of need-based and merit aid hit an all-time high of 42.4 percent in 2010, a jump from about 39 percent in 2007. The report estimates that 88 percent of students at the institutions surveyed received some institutional aid, and those students paid about half of the college or university's sticker price.

That increase in the discount rate came at the expense of growth in net tuition revenue. While net revenues grew at about 5 percent for five of the years between 2001 and 2007, tuition revenue dropped 0.3 percent in 2008, and grew only 1.8 percent and 2.8 percent in 2009 and 2010, respectively. That means that institutions did not gain nearly as much revenue as their tuition increases would suggest, and that many institutions saw gains in tuition revenue that lagged the inflation rate.

The association surveyed 381 private, not-for-profit institutions about how they discounted tuition in 2009 and 2010. The survey’s findings include a general trend toward more money being spent on institutional aid and a larger number of students receiving aid, both of which created financial difficulties for some institutions.

The report notes that increases in discounting “have come at a cost to a large number of institutions. Net tuition revenue has recovered for some institutions, but the rate of growth in net revenue remains below the average achieved before the onset of the downturn. Many institutions have implemented hiring freezes and other austerity measures to make up the resulting budget gaps.”

Discounting is part of a tug-of-war that colleges and universities play with their enrollment numbers and bottom lines. They place their sticker price beyond the reach of many potential students but make up the difference between that price and what a student can or will pay through institutional grants and scholarships. Proponents have argued that there are some psychological benefits to having a high sticker price, such as the perception of quality, and high discounting, such as the value a student perceives when he is offered a large package.

The strategy pays off financially when enough students can pay the sticker price. But when too few students pay sticker price, too many students need large aid packages, or enrollment numbers aren’t met, colleges and universities that depend on tuition revenue are put in a tight spot financially. Moody’s Investors Service reported last year that 15 percent of private institutions could face stagnant or falling revenues for the 2011 fiscal year because increases in discount rates outpaced increases in tuition rates.”

This condition will force colleges and universities to tighten their belts and begin reducing their costs. This is a good thing. It has happened to just about every other industry in the country and now it’s time for the academic elites and college administrators They will have to reduce their bloated staffs, put expansions of facilities on hold and figure out how to increase the qualities of their degrees. They will also have to evaluate, as did other industries, the courses they offer. Courses like women’s studies, African-American studies, Gay studies, and other such social focused courses will need to be dramatically reduced or eliminated altogether. Students are taking these powder puff courses to breeze towards a degree, a degree that will bring no hopes of future employment except within the academic community that will be downsized if the tuition bubble bursts.

David Swindle blogs in PJ Tatler:

“I have a special interest in this subject and you can expect blog posts from me on it regularly at PJ Tatler. From December 2007 through the end of July 2009 I worked full-time first as a student loan debt collector and then as an assistant manager helping oversee a team of such “default prevention specialists.”

To begin to understand just how screwed up the situation is it’s important to realize how federally-insured student loans are so different than other kinds of debt. As a “collector” I barely actually collected any money. Instead my job primarily entailed tracking down borrowers so they could put their loan back into forbearance or deferment so they would not default. Borrowers for loans dispersed between the early ’90s and the passage of ObamaCare have a wealth of perks for those who are unable or uninterested in making payments. Lose your job? No biggie, you’re eligible for 2-3 years’ worth of unemployment deferment. Have a job that’s not paying you much? Chances are you’ll be eligible to use some of your 3 years’ worth of economic hardship deferment. Have other bills that you’d rather pay instead of your student loan? No problem, Sallie Mae and many other lenders offer sometimes as much as FIVE YEARS worth of forbearance time. Well, what happens if you’ve burned through all the time and still want need time off from having to pay? Sallie Mae offered 3 years of Title IV administrative forbearance that had the same qualifications as the economic hardship deferment. Thus, as a collector I’d regularly come across borrowers who had gone YEARS without ever making a payment and the loan’s capitalized interest had just grown and grown and grown — much to the bank’s delight.

And what happens if someone actually does default on their student loan? First of all they have to be delinquent for around a year before that happens. At 270 days of delinquency the loan is eligible for default but it usually doesn’t actually happen until 330-370+ days of delinquency. (The banks are legally required to perform due diligence to try and prevent default. If adequate attempts have not been made to reach the borrower then it cannot be defaulted.) At default the guarantor (the federal government’s collection of your taxpayer dollars) reimburses the bank almost everything owed and the borrower’s loan is sold to a collection agency. At this point the debt will increase by another 20% or so in collection fees but the borrower will often have the opportunity to “rehabilitate” the loan to bring it back into good standing. Usually they do this by making a year or so of auto-debited or at least consecutive payments. Then the loan returns, though much larger. But what also comes back? ALL of their deferment and forbearance options are reset back to zero because it’s basically a new loan. Then the whole cat-and-mouse process of putting off paying the loan, trying to hide from collectors and skip tracers, and letting the interest capitalize more and more can just start again.

It should be pretty obvious why a system like this is unsustainable and doesn’t actually help anyone except the big banks and politicians in both parties.”

There’s a reason why federally-insured student loans cannot — and SHOULD NOT — be discharged in bankruptcy. Would you like to guess what happened when they could? People who were perfectly capable of making the money to pay back their loans — like doctors and lawyers — would just declare bankruptcy to clear the huge debts they had accumulated going through law or medical school. Who cares if their credit is trashed for a few years? They’re making more than enough money with the skills and credentials that they have just effectively stolen.

Education is not like other investments. If a bank loans someone money to buy a house, business, or a car and the borrower cannot pay the loan then there are means for at least recovering some value: repossess the car, foreclose on the house, or liquidate the business assets. But what to do when millions of people decide they don’t want to pay for the education and the life experiences they’ve just had over the course of (in some cases) a decade?

Here’s the straight dope: everyone who takes out their student loans is capable of making some kind of payments. Maybe not as large a payment as the banks want but that’s why income-based repayment programs exist. (And don’t bring up the already-granted exceptions of those who become disabled. The one correct exception to the rule is that yes, federal student loans can be discharged due to disability). All the various options added up together make it entirely possible for especially “hard luck” individuals to delay paying their loans for more than ten years (5 years forbearance + 3 years economic hardship deferment + 2-3 years unemployment deferment + 3 years Title IV administrative forbearance.) But of course you’re not supposed to do that. The options are supposed to just be used here and there and you’re supposed to be making payments and trying to pay off one’s debt, instead of finding creative ways to avoid it. Anyone who “cannot” make payments is really just choosing to spend their money on other things — just as our federal government is debating raising the debt ceiling because it refuses to talk seriously about choosing to end destructive entitlement programs (like this very one) that actually hurt far more than they help.

Given the way our culture from the President and leaders of both political parties regards dealing with paying debts at the government levels it’s not surprising that plenty of people are going to not take seriously paying their personal debt.

Everything has a cost. And the personal cost (never mind the costs spread out across the taxpayers) of the federally-insured student loan is that they can’t be discharged during bankruptcy. It’s just a different way of paying for the perks. Students who want to be able to discharge their loans in bankruptcy do have an option — private student loans. They aren’t much different than credit cards — they have much higher interest rates and no get-out-of-jail-free cards when you’re unemployed.

We need to remember that anytime anyone defrauds the government they are stealing YOUR money and your unborn grand-children’s money. (And when people default on their federally-insured student loans that’s exactly what they’re doing — they’re breaking the agreement they chose to make.) Perhaps if more citizens remembered that there’d be more interest in disassembling this financial black hole we euphemistically dub the “welfare state.”

Politicians, including Barack Obama , still give lip service to the notion that everyone should go to college and can profit from it. And many college and university administrators may assume that the gravy train will go on forever.

But that's what Las Vegas real estate developers and homebuilders thought in 2006. My sense is once again well intentioned public policy and greedy providers have produced a bubble that is about to burst.

Sunday, July 24, 2011

The Alinsky Tomato

"It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest." — Adam Smith

Did you ever wonder why you can’t get a good old fashioned ripe tomato at your local super market? Well, it’s because most tomatoes sold in super markets are grown in hot houses or in Mexico. Many times they are picked when they are not quite ripe and then pit in trucks and driven to the regional wholesaler while they ripen in the back of the truck.

So if you want a good tomato you have to go to a roadside stand, where hopefully the tomatoes are grown and picked when ripe, or a specialty store like Trader Joe’s. But wait a minute, the progressive lefties don’t like Trader Joes anymore because they blame poor old Trader Joe’s for the plight of the farm worker — many of them probably illegal immigrants. They want the Trader to raise the price of their tomatoes so the farm workers will make more money. In this way the consumer can subsidize the farm workers.

So with this in mind young wild eyed Alinsky radicals with the stingy hair, unkempt beards and wire frame glasses decided to pick the target, freeze it, personalize it and polarize it, just as good ole Saul advised them to do in book “Rules for Radicals”, Obama’s Bible. The target they picked was Trader Joes in Florida.

The topic of the protest is itself of little interest — something about forcing retailers to raise food prices in order to subsidize a wage hike for farmworkers in Florida.

Nor is it a significant news event; just another random protest on a random day on a random issue.

No, what makes it interesting is that it illustrates, in a perfect, encapsulated miniature way, the bullying and public-shaming tactics advocated by Saul Alinsky in his book Rules for Radicals. It’s obvious these young radicals have read their Alinsky well.

Let’s just say (I know this is a stretch — just stay with me on this for the sake of argument) that you were deeply upset that farmworkers in Florida voluntarily choose to work picking tomatoes for wages that you think are awfully low. For purely altruistic reasons, you’d like them all to get a raise. You complain to the growers, but they say that the income they get from selling tomatoes at low wholesale prices, plus high shipping costs and so forth, make it completely unfeasible to pay farmworkers higher

So: What do you do? How to solve the perceived problem?

Well, according to Alinsky, what you do is find a visible target, especially one that is sensitive about its reputation, and then savagely attack them in public, bullying them and shaming them so that they cave in to your demands just to make you go away.

If you can’t attack the people or group directly responsible for the problem, then attack a secondary target anyway, so that the secondary target will out of fear solve your problem for you — again, just to make you shut up and go away.

So, in this case, the altruistic Alinskyites came up with a solution: Go to produce retailers, and demand that they raise their tomato prices, so that they could then take that extra money from the customers and use it to voluntarily pay more per pound to the tomato growers, who would then take that extra money and give it to the farmworkers.

Which is an interesting approach: instead of just focusing on one aspect of the problem, follow the chain of money all the way back to the consumer, and try to micromanage the economic flow so that money is taken out of consumers’ pockets and eventually through several intervening steps is put into the farmworkers’ pockets. Sort of the opposite of free-market capitalism, but in miniature: let’s just call it boutique redistribution.

But how to make all the parties involved comply with your demands? Well, that’s where Alinsky’s Rules for Radicals comes in: Public humiliation.

The protesters in this case decided to target Trader Joe’s, the natural-foods supermarket chain. (Try to ignore the inconvenient fact that very few of Trader Joe’s tomatoes even come from Florida; the altruists didn’t do their homework on this particular aspect, but we can forgive them, because their hearts are in the right place.) Having decided on a target, the goal would be to then threaten Trader Joe’s public image until they cave in, to save face.

In this instance, the protesters’ strategy was to set up a picket line outside index2a Trader Joe’s in San Francisco on Sunday, and accuse the company of basically enslaving abused farmworkers to boost corporate profits. “End Sweatshops in the Fields!” say the signs. “We Demand Food Justice!” “Modern Day Slavery.” You know the drill.

The theory goes that Trader Joe’s will cave in to the demands (however bizarre and irrelevant they may be) because having a picket line in front of your store is bad for business, and bad for public relations. It costs less for the company to just pay extra for a couple of damn tomatoes than they would lose by allowing a picket line to drive away customers.

If you think this strategy could never work, think again: The same tactic already worked against Whole Foods Market, another natural food supermarket chain that is hypersensitive about its reputation for “social justice.” After earlier and similar protests, Whole Foods caved in and voluntarily paid extra for their wholesale tomatoes (and undoubtedly raised retail prices to make up the difference, which is one reason why Whole Foods has such expensive produce).

Now we move on to Stage Two of the Trader Joe’s protest, a sophisticated elaboration of Alinskyite tactics that even Alinsky himself didn’t envision. Since this protest is not a naturally occurring public uprising, but rather a planned maneuver by a clique of activists, one must generate one’s own media coverage, since it’s unlikely that any news outlet will deem your stunt worth covering.

So as part of the protest, you bring along your own photographer to immortalize Trader Joe’s public humiliation. But how to make ittj4sm seem “important,” a historically significant protest that will be remembered for generations? Simple! Just switch the digital camera to “black-and-white” mode, so the images look like historical artifacts from the protest glory days of the ’60s and ’70s! Ah, those old black-and-white pictures of Cesar Chavez trying to unionize the farmworkers, these images are imprinted indelibly on the public consciousness. So we can replicate that importance and glory by making the pictures of our protest also be black-and-white. Instant gravitas!

Study question: Should we dismiss these Alinskyites as sanctimonious irrelevant buffoons, or are they successfully eroding the economy one penny-per-pound at a time, so that eventually a million micromanaged economic transactions will reach the tipping point into a completely controlled economy (which, after all, is their real goal)? Or perhaps we need to grow our own tomatoes.

Sadly retailers like Whole foods and Trader Joes are getting a taste of their own medicine. Let’s face it there are problems in the world, yes, but we are in pretty good shape, especially compared to the rest of the world and their problems. However, progressive activists need enemies, they need to protest, and it’s like a drug to them. In the face of no real ‘oppression’ they will create it, turn on their own and cannibalize them in order to fulfill the need. That’s the problem with ‘social justice’ over equal justice. There can be (and is fully explained in Marx and Alinsky) only 2 flavors, the oppressed and the oppressor, or as Bastiat said; the plunder and the plundered.

The free market will dictate how much people will pay for tomatoes, apples, oranges, TV sets, cars and iPads. When, in the name of social justice or union protectionism, producers will simply grow their tomatoes and make their cars somewhere else and the consumer will not be able to get a red, ripe beefsteak tomato.

Friday, July 22, 2011

We Need An Elimination Commission

"Society in every state is a blessing, but government, even in its best state, is but a necessary evil; in its worst state an intolerable one." — Thomas Paine

Our government has numerous commissions. We have deficit commissions, debt commissions, 9/11 commissions and federal communications commissions. While all of these commissions have served some useful past purpose the commission we really need today is an elimination commission.

The latest egregious example of the growth of government is the Consumer Financial Protection Bureau that has been allocated $481 billion dollars. This behemoth is intended to protect consumers, but is really a full employment act for government bureaucrats. Michelle Malkin writes in Human Events:

“Here is just a brief sample of "upcoming activity" on Dodd-Frank (with many rule-making deadlines still to be determined) published on the Securities and Exchange Commission website:

Section 342: Create and staff Office of Minority and Women Inclusion (pending reprogramming approval by appropriators)

Section 911: Create new Investor Advisory Committee (pending appointment of Investor Advocate)

Sections 915 and 919D: Create and staff Office of Investor Advocate (pending reprogramming approval by appropriators)

Section 919: Issue rules, as the Commission deems appropriate, designating documents or information that must be provided by a broker or dealer to a retail investor before the purchase of an investment product or service

Section 921: Issue rules, as the Commission deems appropriate, addressing agreements that require customers or clients of any broker, dealer or investment adviser to arbitrate disputes arising under the Federal securities laws

Section 932: Create and staff Office of Credit Ratings (pending reprogramming approval by appropriators)

Section 979: Create and staff Office of Municipal Securities (pending reprogramming approval by appropriators)

Section 967: Report to Congress describing actions to implement the regulatory and administrative recommendations contained in the independent consultant's report on the SEC's organization.

Now multiply that language by more than 400 rules total and tens of thousands of pages, scores of lobbying firms and legions of lawyers.

While disastrous bailout behemoths Fannie Mae and Freddie Mac get off scot-free, small businesses, small community banks and small broker-dealers have been hit hard by the vagueness, uncertainty and cost burdens created by the Dodd-Frank-enstein monster. Meanwhile, the Government Accountability Office estimates that the feds will need $1.25 billion for 11 different agencies to fund the rule-making racket by 2012 -- including $481 million for the newly created Consumer Financial Protection Bureau.”

Over the last few weeks and months the President and Congress have been arguing about the need to raise the debt ceiling before August 2, so the country won’t default on its financial obligations and have its American Excess card canceled.

Both are blaming each other over who drove the country into the ditch.

It doesn’t matter who drove it into the ditch. What matters is this: how are we going to get the car out?

Republicans say cut spending and Democrats say raise taxes.

The idea of raising taxes in this shaky economy is out of the question and would only be used to feed Congress’ spending addiction. No need to give the junkies in Washington more dope.

The first thing they need to do is cut spending. Just like most American families have already done.

But how much to cut?

Both parties and the president have been talking about budget cuts as high as $4 trillion over 10 years. Sounds like a big number right? But those cuts are puny in comparison to the magnitude of the problem.

The 2011 budget was $3.8 trillion meaning that the Federal government spends about $10.4 billion a day. So if my public school arithmetic is right the $400 billion is about 40 days’ worth of spending.

And with the national debt at $14.5 trillion and counting those cuts are chicken feed.

It’s like a family paying the monthly minimum on their credit card. Interest will still add up and it will be years before the debt is paid.

In February 2010 President Obama announced a Debt Commission whose mission was to offer a bipartisan solution. When they reported their recommendations to him in December 2010 he thanked them and then promptly ignored their plan.

To be fair both parties whined and complained about the recommendations and consequently they died a quiet death. No one even attended the funeral.

So if President Obama and Congress are either unwilling, unable or simply won’t cut the government down to size who will?

Maybe it’s time for the people to get a crack at solving the problem.

If I ever became president, I would introduce a new word to Washington. It is a word they never use when talking about reducing government or budget cuts. That word is: e-l-i-m-i-n-a-t-e. As in to get rid of completely.

One of my first acts as president would be the creation of an "Elimination Commission." It would be made up of regular folks from across America instead of the ex-politicians, lobbyists, lawyers and permanent political class that populate the 68 square miles surrounded by reality that is Washington.

The Commission’s job would be to eliminate entire departments, agencies and programs that are ineffective, unnecessary, or just cost too dang much for little or no return.

And unlike President Obama — who created a Debt Commission and then didn’t follow its advice — I would be guided by what the Elimination Commission says. If it’s good enough with the regular folks on the panel it’s good enough for me.

All cabinet departments, agencies and programs would have to appear before the Elimination Commission to justify their existence and convince the Commission why they shouldn’t be eliminated. They would have just 20 minutes to make their case. Why? Because as they say, time is money.

The model for the Elimination Commission would be the Base Realignment and Closure Commission (BRAC) that was formed in the late 1980’s in order to close military bases that had outlived their usefulness and realigned others to save money and make the military more efficient. And just like BRAC the Elimination Commission’s recommendations would be given to Congress for an up or down vote. No amendments, no changes and no special interest lobbying.

Ronald Reagan once said, “The closest thing we will ever see to eternal life on this earth is a government program”. He was right.

In 1898 Congress passed a 3% excise tax on long distance phone calls to pay for the Spanish American War. The war began and ended that same year but the tax lasted for 108 years until it was finally eliminated in 2006.

We don’t have 108 years to eliminate unnecessary government programs, agencies and departments.

We need to start right now.

You cannot reduce government spending without eliminating government departments and that means government employees. There are four reasons we want to do this. 1.) Government employees represent a cost, they are paid salaries; 2.) Government employees drain our future budgets with the cost for pensions and health care until they die; 3.) Government employees cause more harm than good. In many cases the fellow with a down stairs office hasn’t the slightest idea what the fellow on second floor is doing; 4.) Government employees belong to unions that coercively collect dues to give to politicians that will support the union and increase the benefits and compensation of the government employees — a vicious circle of plunder.

In most cases the needed functions performed by civil employees such as airport security, air traffic control, meat inspectors, secretaries, IT professionals, architects and engineers can be performed by contract employees, if really needed. Contractor employees do not bring liability to the taxpayer for pensions and life-time health care.

So, with this in mind I will be offering my suggestions to the Elimination Commission by focusing on seven U.S. government departments and the agencies, bureaus, subsidies, grants and other programs they spend taxpayers’ money with no real return in value.

In this blog post I will begin with probably the most worthless, overbearing, wasteful and unconstitutional department in the United States government — the Department of Education.

The Department of Education operates a range of subsidy programs for elementary and secondary schools. That aid is matched by rising federal regulatory control over the schools, but federal intervention has not lifted academic achievement. The department also provides subsidies to higher education through student loans and grants. Unfortunately, that aid has fueled inflation in college tuition and is subject to widespread abuse.

The department will spend $79 billion in 2011, or about $670 for every U.S. household. It employs 4,400 workers and operates 171 different subsidy programs.

In 1979, after much opposition, Congress narrowly passed legislation to split off a new Department of Education from the existing Department of Health, Education, and Welfare. The NEA and the American Federation of Teachers provide powerful lobbying support for the creation of the new department. The Department of Education began operations in 1980 with 6,400 employees.

In 1980, when campaigning for president, Ronald Reagan calls the Department of Education "President Carter's new bureaucratic boondoggle" and promises to abolish it. Reagan was right and due to a Democrat controlled Congress he had no chance of dumping this wasteful and useless department.

A basic effect of all federal programs is to redistribute income from taxpayers to the beneficiaries of programs. The more than $79 billion ($107 billion including stimulus dollars) spent on K-12 education programs could have otherwise been retained by families and used for education or other private purposes. The higher are taxes, the less income families have to spend on private schools, tutors, or saving for college. Without federal involvement, each state and local government could decide the best use of public education dollars, whether reducing class sizes or implementing choice programs to incorporate private schools.

Federal intervention has long been supported on “equity” grounds, or redistributing funds toward less-advantaged schools. But studies have found that the federal government is not very successful at such redistribution, even if it were a good idea. When you compare a ranking of the states based on poverty rates with a ranking of per pupil federal K-12 financing, it reveals only a weak correlation. In other words; states with high poverty rates typically get only slightly more federal funds than wealthier states.

Perhaps more importantly, federal funds are often offset at the state and local levels by reduced state and local funding. A statistical analysis by Nora Gordon of the University of California, San Diego, found that while Title I is supposed to steer money to poor school districts, the actual effect is quite different. She found that within a few years of a grant being given, state and local governments used the federal funds to displace their own funding of poor schools. Thus, poor schools may be no further ahead despite the federal grant money directed at them. Other studies have concluded that Title I has not reduced the education funding gap between higher- and lower-income states.

Aside from redistribution, the theory behind educational aid to the states is that federal policymakers can design programs in the national interest to efficiently solve local problems. But involving the federal government focuses the educational policy discussion on spending levels and regulations, not on delivering quality services. By involving all levels of government in just about every policy area, the aid system creates a lack of accountability—when every government is responsible for education, no government is responsible.

The Department of Education has no teachers and runs no schools. Its purpose is to oversee 146 education grant programs, which are described in a massive department guidebook that is 490 pages long. In 2008, the number of different grant and subsidy programs operated by the department included 34 for special education, 46 in its Office of Elementary and Secondary Education, and 8 in its Office of Educational Research. As discussed elsewhere on this website, the department also runs dozens of expensive grant and subsidy programs for higher education.

All these programs create intense bureaucracy at the federal, state, and local levels. One can look at budget data for particular programs to get an estimate of federal administrative costs. For example, the Safe and Drug-Free Schools program has administrative costs equal to about 8 percent of the value of grants handed out. Those costs stay in Washington, and do not help school students.

The larger educational bureaucracies are in the state and local agencies that comply with all the federal regulations. For example, in 2008 the Department of Education estimated that 7.8 million hours of work would be needed for state and local education agencies to comply just with regulations governing Title I grants. That figure had increased from 2.9 million hours in 2003, mainly as a result of the No Child Left Behind legislation.40 In many states, a majority of state-level education department workers are those administering federally funded programs.

Federal education programs have also generated large lobbying and litigation activities, which are a drag on the U.S. economy. Consider, for example, that the National Education Association has a staff of 555 and a budget of more than $300 million.42 The NEA influences federal policy through publications, conferences, meetings with legislators, and contributions to candidates.

Aside from the broad-based groups that lobby for overall spending increases, there are many lobby groups focused on particular education programs in the federal budget, such as the National Head Start Association. This organization, which as an annual budget of more than $5 million, pushes for increased Head Start spending every way it can, such as publishing a 16-page “Voter Participation and Lobbying Guide for Head Start Staff, Parents, and Friends.” The association even has its own Legal Advisory Service to provide legal training and legal guidance for the recipients of Head Start subsidies.

Over the decades, policymakers have argued that various state, local, and private activities need federal intervention because they are “national priorities.” A fact sheet from the Secretary of Education in 2005 begins: “The responsibility for K-12 education rests with the states under the Constitution. There is also a compelling national interest in the quality of the nation’s public schools. Therefore, the federal government provides assistance to the states and schools in an effort to supplement not supplant, state support.”

This logic is flawed because there are few activities that the federal government performs that are not also priorities of individuals and state and local governments. One can call education a “national” priority, but that does not mean that the federal government has to get involved. That’s because education is also a high priority of local governments and families. The states are free to learn new schooling techniques from each other, but there is no need for top-down control from Washington.

President Ronald Reagan made the following observation in a 1987 executive order on federalism:

“It is important to recognize the distinction between problems of national scope (which may justify federal action) and problems that are merely common to the states (which will not justify federal action because individual states, acting individually or together, can effectively deal with them).”

Having high quality K-12 education is a concern of many Americans, but that does not justify having a federal Department of Education. Canada provides an interesting comparison. Like the United States, Canada is a high-income federation with an advanced economy, yet it has no federal department of education. Public education in Canada is of sole concern to provincial and local governments. Interestingly, that decentralized approach has resulted in substantial experimentation and innovation, including school vouchers, charter schools, and competing public schools. International education achievement data suggest that children in several Canadian provinces, and the nation as a whole, outperform U.S. students in reading, mathematics, and science.

Federal aid to students and higher educational institutions is harmful on many fronts. It drives up tuition costs, encourages bloat and inefficiency, and is an unfair burden on taxpayers. It also poses a threat to the core strengths of American higher education, including institutional autonomy, competition, and innovation. All efforts to impose top-down federal regulations on colleges and universities should be rejected, and federal subsidies to students and institutions should be phased out and eliminated.

In the United States, the federal government has expended hundreds of billions of dollars on the schools, yet all it has to show for it is stagnant test scores, huge bureaucracies, and masses of federal regulations that smother local innovation. The federal government’s poor track record proves how wise the Constitution’s framers were to leave such local activities to the states. Federal meddling in education should be scaled down and phased out, and control should be returned to the states and, ultimately to the people.

Nowhere in the Constitution’s Article I, Section 8 does Congress have an enumerated power to fund education at a national level. Education is a state and local issue and the funding comes from local property taxes. Local communities have their own school boards to regulate the education is carried out in the community and the states have the responsibility to set basic standards for all schools, public and private. When a state of local school board, due to their fiscal mismanagement, accepts one penny from the federal government they accept $79 billion in rules and regulations.

It’s time to return the responsibility for K-12 education back to the states and local authority. Why should the people in Montana, Idaho or Nebraska be forced to subsidize education programs in California or Massachusetts? They shouldn’t.

With the abolishment of the Department of Education we will save $107 billion dollars and eliminate 4,400 federal jobs, pensions and life-time health care. This may sound harsh, but I am sure we can create a way to phase these employees into retirement or the private sector. Employees working in the private sector are faced downsizing and layoffs every day. The federal government should be no different.

In future posts I will deal with seven more departments that should be eliminated from the federal government I will propose we eliminate the departments of energy, agriculture, transportation, HUD, health and human services, labor and the EPA.

Funding of Mosques

“The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government - lest it come to dominate our lives and interests." — Patrick Henry

While we, as a nation, are going broke and borrowing billions of dollars from the Chinese the bone-headed bureaucrats in the U.S. State Department’s USAID are allocating $770 million dollars to repair mosques in the Middle East. WBS-TV in Atlanta reported this fact this week in a segment of their newscast.

In ordinary times this would be unbelievable, but with our current administration’s love for Muslims nothing surprises me anymore. In this country any government monies remotely associated with religion (except Islam) is forbidden under the Court’s interpretation of the First Amendment’s establishment clause. No support for religious based schools or institutions. No tax exemptions if a minister, rabbi or priest mentions politics from the pulpit (expect Muslims in their mosques), no tax relief for people not sending their children to parochial schools, and no singing of Christmas Carols in public schools. Parents sending their children to parochial schools are not even allowed to take advantage of public school buses for which they pay for.

Yet, in the name of some misguided outreach program our government can send 770 million of taxpayers’ money in hopes that the Muslims will grow to love us. How insane can we get? According to a recent poll 60% of the people in the Middle East do not believe Arabs were responsible for 9/11. How on God’s green earth does our State Department believe $770 million to repair dirty, old, dilapidated mosques will change their minds when the numerous recorded utterances of Osama bin Laden did not convince hem.

This is yet another reason we must begin to downsize our government and begin eliminating useless and outdated departments and programs that are bleeding unaccountable money and driving us into the poor house.