Bailout


With the selection of Paul Ryan as Mitt Romney’s running mate in the 2012 election, Romney is hoping to strengthen his credentials as a budget cutting “deficit hawk” through association with Ryan’s famous budget plan. Given the other choices which Romney was considering this is probably a good overall choice. As Republican Liberty Caucus Chairman Dave Nalle said in response to the announcement:

“While Paul Ryan is by no means the most exciting or creative choice for a running mate, his selection does suggest that there would be an emphasis on budget cutting in a Romney/Ryan administration. Using the Ryan plan as a starting point and with the addition of deeper cuts and more significant reforms to entitlements, Republicans controlling both houses of Congress and the Presidency might be able to pull the country back from the brink of the fiscal abyss.”

The problem is that Ryan’s reputation as a fiscal conservative may not have much substance to it and his positions on other key issues are at the very least worrisome. He has received a great deal of press for a budget plan which does include some cuts and restructuring of medicare, but despite fearmongering from the left, the cuts are far too small and the reforms too limited to really pull us back from the edge of the abyss of debt which faces the nation.

The Ryan plan might be a good starting point if it was augmented with more substantial spending reductions and more comprehensive entitlement reform, but that would require a very proactive and fiscally conservative Congress. By itself it is just not sufficient. It takes a decade to balance the budget and potentially 40 years to deal with the debt, by which time there may be no economy left to save.

In addition, Ryan’s record on spending and other budgetary issues gives little hope that he is terribly serious about promoting limited government. In 2010 the Republican Liberty Caucus of Wisconsin published an analysis of his record and the report is not encouraging. I am reprinting it here in its entirety for those who are concerned about Ryan’s real credentials as a fiscal conservative.

Increasingly our Wisconsin Congressman Paul Ryan has become a national media darling. Representative Ryan is consistently being promoted on social media networks and by the Republican Party of Wisconsin and the nationwide “free market” group Americans for Prosperity.The fact of the matter is that Congressman Ryan voted with George W. Bush 94% of the time. That’s why Ryan’s 2007 Republican Liberty Caucus Liberty Index score, which ranks members of Congress on their voting record from a constitutional perspective, was 91% on economic issues but only 56% on social issues. In 2006, his score on the Liberty Index was 66% on economic issues and 67% on social issues. He has scored better on the Liberty Index; his 2008 score, for example, was 88 both on social and economic issues — an impressive score.It appears that when Paul Ryan’s party is doing the spending, raising debt limits, and acting unconstitutionally… Ryan goes with the flow.

Congressman Ryan’s actual record leaves much to be desired.

The issue Ryan is most known for is his interest in cutting the deficit and balancing the budget.

But why did the Congressman vote to bail out the auto industry, to pass the Medicare package to the tune of $400 billion, and to nationalize education via No Child Left Behind?

Paul Ryan on Bailouts and Government Stimuli
-Voted YES on TARP (2008)
-Voted YES on Economic Stimulus HR 5140 (2008)
-Voted YES on $15B bailout for GM and Chrysler. (Dec 2008)
-Voted YES on $192B additional anti-recession stimulus spending. (Jul 2009)

Paul Ryan on Entitlement Programs
-Voted YES on limited prescription drug benefit for Medicare recipients. (Nov 2003)
-Voted YES on providing $70 million for Section 8 Housing vouchers. (Jun 2006)
-Voted YES on extending unemployment benefits from 39 weeks to 59 weeks. (Oct 2008)
-Voted YES on Head Start Act (2007)

Paul Ryan on Education
Rep. Ryan went along with the Bush Administration in supporting more federal involvement in education. This is contrary to the traditional Republican position, which included support for abolition of the Department of Education and decreasing federal involvement in education.

-Voted YES on No Child Left Behind Act (2001)

Paul Ryan on Civil Liberties
-Voted YES on federalizing rules for driver licenses to hinder terrorists. (Feb 2005)
-Voted YES on making the PATRIOT Act permanent. (Dec 2005)
-Voted YES on allowing electronic surveillance without a warrant. (Sep 2006)

Paul Ryan on War and Intervention Abroad
-Voted YES on authorizing military force in Iraq. (Oct 2002)
-Voted YES on emergency $78B for war in Iraq & Afghanistan. (Apr 2003)
-Voted YES on declaring Iraq part of War on Terror with no exit date. (Jun 2006)
-Voted NO on redeploying US troops out of Iraq starting in 90 days. (May 2007)

Congressman Ryan supports the United Nations, the World Trade Organization, federal bailouts, increased federal involvement in education, unconstitutional and undeclared wars, Medicare Part D (a multi trillion dollar unfunded liability), stimulus spending, and foreign aid.

According to Michelle Malkin in 2009, “[Paul Ryan] gave one of the most hysterical speeches in the rush to pass TARP last fall; voted for the auto bailout; and voted with the Barney Frank-Nancy Pelosi AIG bonus-bashing stampede. Milwaukee blogger Nick Schweitzer wrote: ‘He ought to be apologizing for his previous votes, not pretending he was being responsible the entire time, but I don’t see one bit of regret for what he did previously. And I’ll be damned if I’m going to let him get away with it’.”

Congressman Ryan: if you don’t like debt, stop voting for debt.

Ryan’s record of fiscal irresponsibility has continued beyond 2010 when this article was written.  He has since voted to raise the debt ceiling multiple times and approved ongoing extensions of military spending on unnecessary foreign wars.  To be fair his record on fiscal issues has become increasingly mixed.  He has voted against foreign aid, farm subsidies and some other specific spending increases as well.

Possibly of even greater concern is Ryan’s ongoing record of absolute irresponsibility in the area of civil liberties.  Since 2010 Ryan has been on the wrong side of almost every important vote involving basic Constitutionally protected rights.  He voted to extend the PATRIOT Act, for CISPA, for DOMA, for the NDAA (three times), to expand the Department of Homeland Security, to extend troop commitments in Iraq, Afghanistan and Libya and to give the President the power to appoint department heads without Senatorial approval.  At a time when more and more Republicans are waking up to the threat of expanded government power to operate without observing traditional limits on their police power these votes are a major concern.

TARP, bailouts, entitlement expansion, endless military spending and bigger, more intrusive and less constitutional government. Is the Ryan record an example of the kind of policies a financially imperiled nation needs and which grassroots Republicans are demanding? Ryan is probably a gesture in the right direction, but Liberty Republicans should be concerned that the gesture is more symbol than substance and demand a clear and aggressive fiscal plan from the Romney campaign.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

President Obama counted on Midwestern states to deliver his 2008 Presidential victory. His popularity in the Midwest was high, having won by large margins in states like Iowa, Michigan, and Wisconsin. Clearly Midwest voters were interested in change and a new direction for the country.

But with less than two weeks until the 2010 mid-term elections, the Midwest has become the President’s biggest problem area.

The President’s party is poised to lose at least four Senate races in the Midwest (IN, MO, ND, OH) while two others remain tight contests in which the GOP candidate has been consistently leading (IL, WI). Of the four open Midwest gubernatorial contests, the GOP is posting solid results in three of them (IL, OH, WI) with another, Minnesota, still up for grabs.

Looking at swing Congressional races is where you really get an idea of the Democrats’ Midwestern problem. States that rarely have competitive races like Minnesota and Missouri each have several vulnerable incumbents in 2010. Missouri Blue Dog Democrat incumbent Ike Skelton, who has represented central-west Missouri for more than 30 years, is facing perhaps his toughest challenge yet. A similar situation is facing U.S. Rep. Jim Oberstar, who represents northeast Minnesota. Oberstar has been in Congress consistently for nearly 40 years and is in the race of his life. Tim Walz, a second term Democrat from a southern Minnesota swing district, is facing a tough reelection battle as well.

Wisconsin — which is thought to be liberal but is more accurately categorized as a swing state — currently has only three Republicans in its eight member Congressional delegation but may have just two Democrats in its delegation by January, 2011. Vulnerable incumbents there include Reps. Steve Kagen (D) in the northeastern part of the state and Ron Kind (D) in the west.

Illinois and Ohio have between five and six seats each that are extremely competitive House races while four Michigan and three Iowa and Wisconsin seats are up in the air.

Illinois’ western-most district, represented by second term Congressman Phil Hare, was a seat pundits never thought would be in play. But the rural, gerrymandered district is now a national target of Republicans, who have an excellent candidate in businessman Bobby Schilling. Mark Kirk’s vacated seat in the moderate northern Chicago burbs is also up for grabs and is really the Democrat’s only pickup opportunity in the Midwest this cycle. Reps. Melissa Bean (D) in the western Chicago suburbs, Bill Foster (D) in the southern Chicago suburbs, and Debbie Halvorson (D) in central Illinois are also in tough reelection battles. Halvorson, who doesn’t shy away from any of her votes or support of the Obama agenda, has been down as far as eighteen points in recent surveys.

In Iowa, all three of the incumbent Democrat Congressmen, Reps. Bruce Braley, Dave Loebsack, and Leonard Boswell could lose. Indiana’s Joe Donnelly (D) and Baron Hill (D) are facing tough challenges and Brad Ellsworth’s open seat in southern Indiana is poised for a Republican pickup.

The upper Midwest is heavily in play, too. Bart Stupak’s open Michigan upper Peninsula seat is leaning Republican, as are the two northern Wisconsin seats held by the retiring Rep. David Obey (D) and second term Democrat Steve Kagen.

The Democrats are losing rural voters who are deeply concerned about the economy and didn’t see any added benefits after the stimulus and Obamacare.

Voters in rural Ohio districts like the eastern-most districts of Reps. Zack Space (D) and Charlie Wilson (D) may be poised to boot out the incumbents. The same is true of swing districts in Ohio like that of northeast Ohio’s John Boccieri  and central Ohio’s Mary Jo Kilroy, first-term Democrats who rubber-stamped the entire Obama agenda. Suburban districts represented by Steve Driehaus (D) and Betty Sutton (D), which are centered around Akron and Cincinatti, are also in play.

Both the North and South Dakota At Large seats are up for grabs for the first time in many years, too. All told, the entire region is in play — from Skelton’s seat in central Missouri to Wilson’s seat in eastern Ohio and from Kagen’s seat in northeast Wisconsin all the way westward to the Dakotas.

A recent Rasmussen poll showed that voters are angry with Members of Congress who voted for Obamacare, the auto bailout, or the stimulus package. By significant margins, voters do not want to reelect incumbents who voted for these unpopular parts of the Obama agenda.

The Midwest’s economy is suffering and people are out of work. Jobs is the main topic of most Congressional debates in the region. Midwest voters are likely to make significant changes in who represents them in Congress. Whether those changes will help the struggling economy recover and foster job creation in the region remains to be seen.

But one thing is for sure: the Democrats have a Midwestern sized problem.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

Paul Ryan, Eric Cantor, Joe Wilson, and Other GOP “Heroes” are “Zeros” on Private Enterprise and Limited Government

According to Forbes, the United States racked up a $1.29 trillion deficit in fiscal year 2010. Generally speaking, the slight decline in 2010 is due to somewhat higher tax receipts (up 2.7%) and slightly less spending (down 1.8%).

The Government Accountability Office projects that by the end of this decade, the vast majority of all federal tax revenue will be swallowed up by just four things: Interest payments on the country’s debt, and the payment of Medicare, Medicaid and Social Security benefits.

Now Republicans are talking about the problem of the debt and the deficit. But who was it that voted for the Wall Street Bailout under the Bush Administration? Bush’s Wall Street Bailout passed both houses on October 4, 2008. Republican House members who voted for the bailout are as follows. Keep them in mind this November.

Rodney Alexander. R-La.
Spencer Bachus, R-La.
J. Gresham Barrett, R-S.C.
Judy Biggert, R-Ill.
Roy Blunt, R-Mo.
John Boehner, R-Ohio
Jo Bonner, R-Ala.
John Boozman, R-Ark.
Charles Boustany, R-La.
Kevin Brady, R-Texas
Henry Brown, R-S.C.
Vern Buchanan, Fla.
Ken Calvert, R-Calif.
Dave Camp, R-Mich.
John Campbell, R-Calif.
Chris Cannon, R-Utah
Eric Cantor, R-Va.
Mike Castle, R-D.E.
Howard Coble, R-N.C.
Tom Cole, R-Okla.
Mike Conaway, R-Texas
Ander Crenshaw, R-Fla.
Barbara Cubin, R-Wy.
Tom Davis, R-Va.
Charlie Dent, R-Pa.
David Dreier, R-Calif.
Vern Ehlers, R-Mich.
Jo Ann Emerson, R-Mo.
Terry Everett, R-Ala.
Mary Fallin, R-Okla.
Mike Ferguson, R-N.J.
Vito Fossella, R-N.Y.
Rodney Frelinghuysen, R-N.J.
Jim Gerlach, R-N.J.
Wayne Gilchrest, R-Md.
Kay Granger, R-Texas
Wally Herger, R-Calif.
David Hobson, R-Ohio
Peter Hoekstra, R-Mich.
Bob Inglis, R-S.C.
Peter King, R-NY
Mark Kirk, R-Ill.
John Kline, R-Minn.
Joe Knollenberg, R-Mich.
Randy Kuhl, R-N.Y
Ray LaHood, R-Ill.
Jerry Lewis, R-Calif.
Ron Lewis, R-Ky.
Daniel Lungren, R-Calif.
Mary Mack, R-Calif.
Jim McCrery, R-La.
John McHugh, R-N.Y.
Buck McKeon, R-Calif.
Gary Miller, R-Calif.
Sue Myrick, R-N.C.
John Peterson, R-Pa.
Chip Pickering, R-Miss.
Jon Porter, R-Nev.
Deborah Pryce, R-Ohio
Adam Putnam, R-Fla.
George Radanovich, R-Calif.
Jim Ramstad, R-Minn.
Ralph Regula, R-Ohio
Thomas Reynolds, R-N.Y.
Mike Rogers, R-Mich.
Hal Rogers, R-Ky.
Ileana Ros-Lehtinen, R-Fla.
Paul Ryan, R-Wis.
Jim Saxton, R-N.J.
Jean Schmidt, R-Ohio
Pete Sessions, R-Texas
John Shadegg, R-Ariz.
Christopher Shays, R-Conn.
Bill Shuster, R-Pa.
Michael Simpson, R-Idaho
Lamar Smith, R-Texas
Mark Souder, R-Ind.
John Sullivan, R-Okla.
Tom Tancredo, R-Col.
Lee Terry, R-Neb.
Mac Thornberry, R-Texas
Pat Tiberi, R-Ohio
Fred Upton, R-Mich.
Greg Walden, R-Oregon
James Walsh, R-N.Y.
Zachary Wamp, R-Tenn.
Dave Weldon, R-Fla.
Jerry Weller, R-Ill.
Heather Wilson, R-N.M.
Joe Wilson, R-S.C.
Frank Wolf, R-Va.

Republicans in the Senate who voted for the bailout:

Lamar Alexander, R-Tenn.
Bob Bennett, R-Utah
Christopher Bond, R-Mo.
Richard Burr, R-N.C.
Saxby Chambliss, R-Ga.
Norm Coleman, R-Minn.
Susan Collins, R-Maine
Tom Coburn, R-Okla.
Bob Corker, R-Tenn.
John Cornyn, R-Texas
Larry Craig, R-Idaho
Pete Domenici, R-N.M.
John Ensign, R-Nev.
Lindsey Graham, R-S.C.
Charles Grassley, R-Iowa
Judd Gregg, R-N.H
Charles Hagel, R-Neb.
Orrin Hatch, R-Utah
Kay Hutchison, R-Texas
John Isakson, R-Ga.
Jon Kyl, R-Ariz.
Richard Lugar, R-Ind.
Mel Martinez, R-Fla.
John McCain, R-Ariz.
Mitch McConnell, R-Ky.
Lisa Murkowski, R-Alaska
Gordon Smith, R-Oregon
Olympia Snowe, R-Maine
Ted Stevens, R-Alaska
John Sununu, R-N.H.
John Thune, R-S.D.
George Voinovich, R-Ohio
John Warner, R-Va.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

PO Box 130
West Shokan, NY 12494

June 12, 2010

Lazio 2010, Inc.
P.O. Box 4818
New York, NY 10185

Dear Mr. Lazio:

I am writing as a registered Republican and a member of my Town’s Republican Committee.

Your opponent, Carl Paladino, has publicly stated that during your tenure as a full-time employee and lobbyist for JP Morgan Chase you lobbied for and arranged a payment of $25 billion from the US Treasury to your employer. In other words, Mr. Paldino has publicly alleged that you participated in the “bailout.”  In return you received a $1.3 million bonus.

If Mr. Paldino’s allegations are inaccurate, please respond to this inquiry publicly.

If Mr. Paladino’s allegations are accurate you are morally unfit to serve in public office.  I am posting this letter on my blog and stating explicitly that if Mr. Paladino’s allegations are accurate you are morally equivalent to a common criminal and belong in jail.  Consequently, I would urge you to step down from the gubernatorial candidacy and allow the better man to run.

Sincerely,

Mitchell Langbert, Ph.D.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

There is a growing number of incumbent Members of Congress who “get it”. They understand that the Iraq War was a failure, that Americans are disgusted with the bailout votes, and that any increase in government spending will mean more taxation and debt.

The Club for Growth recently listed its report card on fiscal policy for 2009. The results show that several endorsed Republican Liberty Caucus scored 100% on their legislative barometer, including Congressmen Jeff Flake (AZ), John Shadegg (AZ), Paul Broun (GA), and Doug Lamborn (CO). Scoring 95% or higher are RLC-endorsed Congressmen Scott Garrett (NJ), Tom McClintock (CA), Jim Jordan (OH), Jason Chaffetz (UT), Ron Paul (TX), and Ed Royce (CA).

Of these, Broun (GA), Royce (CA), Garrett (NJ), Paul (TX), and Flake (AZ) did not vote for any of the bailouts. Chaffetz and McClintock were not in Congress during any of the bailouts, so they cannot be held responsible for those votes.

Several of these Members of Congress also either voted against the Iraq War or believe it was a mistake. Those in the former camp include Congressman Ron Paul. Those in the latter camp include Congressman Jeff Flake and Congressman Tom McClintock.

Although this is a small group of Congressmen, we are starting to make some progress.  If we elect just one or two of our Republican Liberty Caucus-endorsed candidates to Congress in 2010, we will be even further on our path to a free society.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

I was reviewing Sarah Palin’s speech at the Tea Party convention on Youtube and was reminded of her position on the 2008 bailout.  In a September 24, 2008 television interview Palin supported the bailout.  But at the recent Tea Party convention she objected to bonuses that the support she had previously advocated made possible. I think the expression is that she has been shedding conservative crocodile tears.

Conservatives love to hate Saul Alinsky but in fact all activists, conservative, libertarian or left-wing, follow his advice if they aim to succeed.  One of Alinsky’s rules for radicals is that a tactic that drags on too long becomes a drag.  This seems to be occurring with the Tea Party.

A reader suggested  this blog by the Alantic Magazine‘s Andrew Sullivan.  Sullivan argues that the Tea Party convention was not economically conservative but was rather dominated by Christian activists.  Sullivan writes:

They have no plans to cut serious spending whatsoever. They love their Medicare, as they screamed at us last August. Do you remember them revolting against Bush’s unfunded, Medicare prescription drug bill, the worst act of fiscal vandalism since the Iraq war?

I have attended my local Tea Party meeting in Kingston, New York.  I do recall others, besides myself, talking about economic issues. One individual brought up the exit of manufacturing from the US, another talked about corruption in government.  There are frequent references to the nation becoming worse for future generations.  These are all good signs and say to me that the Tea Party has potential left.

Since the Atlantic is not a libertarian source (disclaimer: I read it regularly more than a quarter century ago and not since) my gut would be suspicious of anything its writers have to say about the Tea Party.  However, Sullivan makes a good point.

It was obvious from the beginning that the Tea Party rank and file is largely inexperienced.  Moreover, these are people who have developed a bad habit of voting for big government candidates who say that they are for small government.  They did it for George W. Bush and they did it for George H. Bush.  They nominated John McCain, who lept at the bailout like a terrier at a steak, along with Palin and Obama.  The Tea Party people realize that something has gone wrong after decades of their de facto support for big government and their solution is…to do the same thing once again.  This is seen in their decision to ask John McCain’s running mate, Sarah Palin, to be the keynote speaker at their convention.  Palin may speak economic conservative rhetoric at times, but she is not schooled in basic economics and can be seen in the September 2008 interview to be in the Progressive tradition.

I believe that libertarians need to work with the Christian right.  However, we have been hammered once before, with respect to George W. Bush.  The tactic of working with the Tea Party has helped expose our views, and it has been successful. But should libertarians continue to support the Tea Party?  I am not certain that the leadership of the Tea Party supports our mission of limited government.  Sarah Palin does not. I don’t think she understands that government activism in the bailout is logically inconsistent with support for limited government. The Tea Party may soon become a drag.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

Liberty Republicans have a communication challenge. That is, the concepts of limited government, freedom and liberalism are difficult for most people to understand. It is easier to understand the claim that you are helping someone by handing them money than the claim that by limiting government you unleash entrepreneurial energy. Add to that the socialists’ habit of co opting phraseology that characterizes the advocates of freedom, for instance, socialists’  purloining of the word “liberal”.

Nowhere is the challenge facing liberty Republicans greater than with respect to money and banking. The systemic lying about the role of the Federal Reserve Bank in the media and the misleading way in which the topic is taught in basic college courses in economics contribute to the problem. But the reality is that the subject is too abstract for Americans brought up to believe in “experts” and in the word of the federal government. Thus, a malaise of contradictions, confusion and just plain dumbing down makes it difficult for liberty Republicans to discuss economic and monetary issues.

The bailout was a major blow to freedom. Supported as it was by the media, university academics and most Republicrat socialists, it would take someone committed to freedom to say that they opposed. it.

Moreover, because the pro-banker socialist establishment from George W. Bush to Barack Obama favored the bailout, while the general public opposed it, it is a handy campaign issue. A candidate who can say they opposed the bailout and that there will be no more trillion dollar welfare plans for wealthy bankers can win.

Thus, we of the liberty Republican philosophy have a handy litmus test. We can oppose any candidate who favored the bailout, and favor candidates who opposed it.  This simplifies communication and offers a galvanizing campaign issue.  Moreover, the public is likely to be susceptible to our message. The likes of Karl Rove and Newt Gingrich have revealed their socialist core.

And we can stop them.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

John Tate of the Campaign for Liberty just sent out a press release concerning his group’s opposition to the reappointment of Ben Bernanke.  I agree with him in spirit.

What concerns me, though, is that the left also opposes Bernanke’s reappointment. Given the nature of this term’s Democratic Party-dominated Senate, any alternative to Bernanke could be worse.  I would like to see some specific recommendations for alternatives.

Writing in a Democratic Party outlet, the New York Times, leftist Paul Krugman expresses a similar concern, that it is not clear that Bernanke the devil is worse than some crustacean that Harry Reid might pull from the deep blue sea.

Indeed, Krugman’s deliberations concerning Bernanke emphasize that Bernanke has not inflated enough or “done all he can”.  Unless the Democrats can come up with an alternative (e.g., a 21st century Paul Volcker), I’d prefer to stand pat despite what Krugman calls Bernanke’s “complacency”.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

Governor Gary E. Johnson has been called the next Ron Paul.  He has not yet announced his candidacy for president, but has been widely mentioned as a potential Republican presidential candidate who reflects the Tea Party’s and liberty Republicans’ perspectives.

I recently blogged about Governor Johnson’s background.  He received good grades from the Cato Institute when he was governor and has a taste for honesty that is rare in politics and business today.

Besides serving as governor of New Mexico for two terms, he had built a significant corporation from scratch, which he sold in 1999.  Readers who would like to contribute or help Governor Johnson can find contact information on http://ouramericainitiative.com/. He also has a Facebook group page with 2,000 members.

Langbert: Governor Johnson, it is a privilege to interview you.  I teach business administration at Brooklyn College.  What are three things that you learned from your business career that could be applied to the federal government or that you did apply as governor of New Mexico?

Johnson: I started my company in 1974 and I was the only employee.  In 1994 we had 1,000 employees.  Things that I learned and applied as governor include the importance of hiring good people; cutting mistakes short; and sticking to basic principles.

I’m good at hiring people and have a great track record.  But mistakes are inevitable. When you make a mistake in hiring, you need to cut it short.   As governor, I avoided political appointments as much as possible.  There was one instance where I was forced to make one, and I closely monitored the individual’s performance.

The obvious things are most important. The basic principles:  being on time, sticking to principles, telling people to tell the truth.  As governor, I sat down in cabinet meetings and I told people to tell the truth.

L: One of the realities of large organizations is the use of information to manage conflict and improve social compatibility and coordination.  Managers call these patterns interpersonal skills.  Might not 100% truth telling interfere with interpersonal skills? Of course, if everyone in industry tells the truth, costs and performance will be improved.

J: On the contrary, being honest 100% of the time makes it easy.  If you tell the truth, you don’t have to remember anything.  What you’re talking about is managing conflict.  Someone once said that honesty is where what you say and what you think are the same as what you do.  But of course you can say things that minimize conflict.

L:  To what degree is it possible to cut the federal budget? How would you go about cutting?

J: I faced the same situation in New Mexico as the president faces.  I could have cut big government in New Mexico drastically and no one would have noticed.  (That is, these government employees produce no value for the economy.) The spending train is out of control.  But the Democratic legislature fought me and the courts handed down adverse rulings.  The legislature was 2 to 1 Democratic.  Common sense has gone out the window.  First you have to stop the spending.  The time is ripe for doing so in Washington, and it’s accomplishable.

We are a bankrupt nation.  We’re not taking care of our own house. Unlike the generation before us, interest and principle payments are due now. The enormous budget deficits will lead to inflation and an ever weaker dollar.

L:  What is your position on the bailout and TARP?

J: I would have opposed both.  Government should not have been involved in this. The Paulson connection amounts to this being an inside job.  Why should Goldman and AIG be saved but not Lehman?

L: What is your position on health reform?  How would you recommend the system control health costs?

J:  I would recommend a free market approach to health care reform.  Increase supply through the free market.  Gall Bladders R Us. We ended up with an insurance entitlement rather than health care.  Extending the current approach will lead to shortages and rationing health care.

The same principle applies to education.  We should blow the lid off publicly controlled education.

L: What is your position on the Fed and the gold standard?

J: The Federal Reserve deserves full responsibility for the housing bubble and as well deserves credit for mitigating the bust.  Overriding that, the dollar is now worth a nickel.  I understand the arguments for a free market in money and I support them.  I shy away from the phrase “regulate the Fed” because I do not want Barney Frank deciding monetary policy.  I wouldn’t say the Fed needs to be abolished.  I understand the argument for a gold standard, though.  The US government should be pursuing a strong dollar policy, which the Fed hasn’t done.

L: What is your position on the Middle East and Israel?

J: I’ve been to Israel and the Golan Heights and I understand the threats Israel faces from outside and within. I can’t summarize my position as the issues are too complex. I do believe in a strong national defense.  But our security is not threatened by Iraq and Afghanistan.

L: Where do you stand on Iraq and Afghanistan?

J: I believe we should pull out of both and return our focus to fighting terrorism. The focus needs to be protecting America. I’m not sure if that is still the mission in Iraq and Afghanistan. I was surprised that Obama increased US presence in Afghanistan.

L: What about Social Security reform?

J:  Social Security is flawed.  When it was brought into existence the life expectancy was  55. Benefits started at 65.  Now, life expectancy is 75, and benefits start at about the same age. It’s a Ponzi scheme.  A combination of benefit reduction and/or privatization are necessary.  At least part of Social Security should include private accounts that are counted in your estate.

L: What do you think of making Social Security voluntary and converting it into a defined contribution plan?

J: That would make it viable.

L: What is your position on states’ rights and state sovereignty?

J: The states are 50 laboratories of democracy.  The burden that the federal government places on the states is outrageous.  The same is true of health care.  A return to federalism is needed.

L: Thank you, Governor.  I am certain that liberty Republicans will be interested in learning more about your ideas.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

Walter Weyl was one of the three founders of the New Republic, all of whom were pivotal in the creation of so-called “state activist liberalism”, an Orwellian phrase if there ever was one. Weyl was a professor at the Wharton School of Business and advocate of socialism. His book, New Democracy, is not as popular today as Herbert Croly’s and Walter Lippmann’s, his partners’. But Weyl’s book is the most prophetic and forthright. In it he argues (unlike Croly and Lippmann who were not so explicit) that Progressivism (the ideology of Theodore Roosevelt -R- and Woodrow Wilson -D-) would lead to socialism.

The culmination of Weyl’s ideas has occurred. The close linkage between the Progressivism of the Rockefeller Republicans (of whom Theodore Roosevelt was the first) and the social democracy of the Democrats (that traces back to Franklin Roosevelt and William Jennings Bryan) is now evident. With the bailout we see that both Progressivism and social democracy are, as Weyl knew and advocated, complementary versions of socialism.  The triumph of Progressivism was, as Gabriel Kolko put it, the triumph of conservatism.

One side effect of this is we now know what to call them. They are not  “liberals”, which is what libertarians should be called. They are not “Progressives” because no ideology is more conservative than socialism.  Nor are they “social democrats” because they do not believe in democracy, preferring pandering to Wall Street and other special interests, especially public sector unions, failed manufacturing firms and banks to democracy.  Rather, they are SOCIALISTS.  I therefore say to you now:

KNOW YE BY THESE PRESENTS THAT HENCEFORTH I, MITCHELL LANGBERT, REFUSE TO CALL  ROCKEFELLER REPUBLICANS AND DEMOCRATS BY ANY OTHER THAN THEIR TRUE NAME: SOCIALISTS.

A second side effect is that there is an important struggle ahead: to retake control of the GOP.  In the early twentieth century the GOP was the party of Progressivism.  William Howard Taft was what today would be called a conservative, and Theodore Roosevelt bolted the GOP to start the Progressive or Bull Moose Party by which time he was aggressively socialist.  William Jennings Bryan had captured the Democrats in 1896 on behalf of populism, and these ideas found final articulation not in the Progressivism of Wilson, who was for most of his life a Bourbon or laissez faire Democrat, but of Franklin D. Roosevelt. The fact is that most of FDR’s ideas had already been advocated by TR in 1912.

The GOP never recovered from the harm that TR did. Subsequent presidents, Harding and Coolidge, were not ideologically astute and did absolutely nothing to alter the Progressive institutions that Roosevelt and Wilson had initiated. Hoover was a Progressive from the time he had worked for Woodrow Wilson as his food industry price fixing Czar during World War I.  The New Deal was just a continuation of Hoover’s failed Progressive ideas such as using public works to cure unemployment. Eisenhower did nothing to reduce government and added his share, such as the Interstates.  Goldwater and Reagan were a departure, but George W. Bush was part of the Progressive tradition, and waited until several years into his office to make it clear.

We are left with a situation where socialist extremists are in control of both parties. The pro-bailout Republicans of McCain and Bush and the socialist Democrats constitute a twin-headed hydra.  We can win, though, because a healthy 30 percent of America still favors freedom.  If we align ourselves with various other interests, such as the religious,  we can win.

But there is a big fight ahead. Liberty Republicans need to think about how to convince the Rockefeller Republicans to move to their true home–the Democratic Party.  Yes, let’s get rid of them.  They predominate in the unwinnable Blue states anyway, and the public will not care if oil, health care and insurance executives align themselves with the party of greed, the Democrats.

In any case, we have a good argument:  the pro bailout Republicans lost because of their ideas. They have failed. They should step aside.

Mitchell Langbert blogs at http://www.mitchell-langbert.blogspot.com.

The views expressed here are solely those of the author and do not necessarily reflect official positions of the RLC.

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