tea party

Post image for CEI Podcast for October 13, 2011: Occupy Wall Street

Have a listen here.

CEI Founder and President Fred Smith compares the Occupy Wall Street movement with the Tea Party movement and finds similarities as well as differences. Both oppose bailouts and other forms of corporate welfare. But, as he points out in a recent USA Today op-ed, he fears the Occupiers are confusing such crony capitalism with the real thing. If corporations have undue influence over government, making that government bigger and more powerful will only worsen the problem. The solution is separation of corporation and state.

I had a letter to the editor in Friday’s Washington Post:

Richard Cohen fretted that Tea Party activists have “shrunk the government.” He need not worry. Federal spending has gone from $2.9 trillion in 2008 to $3.8?trillion in 2011. Thirty percent spending growth in three years is hardly shrinkage. Even under the Boehner plan, federal spending will continue to increase every year for at least the next decade.

Meanwhile, federal agencies continue to finalize more than 3,500 new regulations per year. They repeal almost none, no matter how loud the Tea Party’s howls.

If anything, Tea Party activists have been devastatingly ineffective at shrinking government. Mr. Cohen can rest easy.

Ryan Young, Washington

The writer is a fellow at the Competitive Enterprise Institute.

Post image for Congressman Mike Doyle: $3.5 Trillion in Spending is Too Little for the Government to “Spend Any Money”

Even after the modest reductions in spending resulting from Sunday’s deal to raise the federal debt ceiling, the federal government will still spend $3.5 trillion in 2012 — compared to $2.9 trillion in 2008. But Congressman Mike Doyle (D-Pa.) had a big tantrum yesterday that the spending won’t be even bigger: “We have negotiated with terrorists,” an angry Doyle said. Referring to the Tea Party, he lamented that “This small group of terrorists have made it impossible to spend any money.” (The Tea Party doesn’t control either House of Congress; Democrats control the Senate.)

His reference to peaceful Tea Party members as “terrorists” was echoed by Vice President Biden. “Vice President Joe Biden joined House Democrats in lashing tea party Republicans Monday, accusing them of having ‘acted like terrorists’ in the fight over raising the nation’s debt limit.” Although Biden regularly voted to increase the debt limit as a senator when a Democrat was in the White House, he and Obama voted against such increases when Republicans were in the White House, even when such debt ceiling increases were needed to pay for federal programs and wars that Biden had voted for. Unlike some Tea Party Republicans, Biden did not make any constructive suggestions about how to rein in deficit spending when he voted against increases in the debt limit. He simply did so to score partisan political points.

Doyle’s claim that Tea Party members are terrorists was echoed by some intemperate left-wing op-ed writers, like The New York Times‘ Joe Nocera, who claimed today that “Tea Party Republicans have waged jihad on the American people.” Curiously, although left-wing journalists depict peaceful Tea Party members as terrorists, they depict violent Greek anti-austerity protesters who oppose cutbacks in deficit spending as “largely peaceful” even when such protesters firebomb banks, resulting in the deaths of innocent people. To them, “peaceful” simply means you don’t question the big-government status quo.

Even with the cuts in the July 31 deal to lift the debt ceiling, America is still spending so much money that its credit rating may be downgraded by Standard and Poor’s. That might wreak havoc on the economy, but The New York Times‘ Paul Krugman called for even more deficit spending in an August 1 op-ed. His frequent lament is that President Obama is insufficiently “progressive,” even though Obama is by any reasonable measure the most left-wing president in history. The federal budget deficit is now $1.6 trillion — compared to $160 billion in 2007. But even increasing the deficit by a factor of ten just isn’t enough for progressives like Krugman.

A lot of blood has been spilled in protests against Greece’s rollback of its incredibly generous welfare state, yet the media routinely refer to those protesters as “largely peaceful,” notes A. Barton Hinkle of the Richmond Times-Dispatch. The media’s indulgent treatment of these big-government supporters, which occasionally hints that violence by the protesters is understandable in light of Greek austerity measures, contrasts sharply with its unrelentingly negative depiction of Tea Party protesters, who have yet to kill anyone or burn down any buildings, but who aroused media ire by opposing the 2010 health care law, which they perceived as a government takeover of the health care system.

Rioting protesters in Greece killed three bank employees in their rage over possible budget cuts.  “The protesting civil servant workers trapped the bank employees in a burning building.”

But as Hinkle notes,

According to one story in The Wall Street Journal, the demonstrations “began peacefully.” According to another, last week Constitution Square in Athens “seethed with indignant, but peaceful, demonstrators.”

“The day began noisily but peacefully,” intoned The New York Times on Wednesday. The Washington Post likewise observed that “a peaceful protest . . . quickly degenerated into violence.” Reuters reported that, regardless of “clashes between stone-throwing masked youths and riot police . . . thousands of peaceful protesters demonstrated against the austerity plan.”

Sure, blood was spilled. But don’t blame the protesters. As the Journal reported, it was Greece’s parliament that approved a “widely hated austerity package” despite “the best efforts of peaceful grass-roots activists, megaphone-touting [sic] labor unionists, and stone-throwing anarchists.”

This is a sharp contrast from how, say, Tea Party protests against the passage of ObamaCare were treated.

The D.C. protests in March of last year were nonviolent affairs, without a single arrest despite one disputed episode in which someone allegedly hurled a racial slur at Rep. John Lewis and spat on Rep. Emanuel Cleaver. (No independent report could verify the allegations.) But that didn’t stop ABC’s David Muir from reporting that “shouted words turned very ugly,” and reporting on “late word from Washington tonight about just how ugly the crowds gathered outside the Longworth office building have become.”

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Post image for Defending Economic Freedom: Charles Koch in the WSJ

Charles Koch provides a strong defense of economic freedom and an attack on crony capitalism in an opinion piece in The Wall Street Journal today. Koch, chairman and CEO of Koch Industries, Inc., and his brother David have been vilified by the left for their contributions to organizations that defend the free market, most notably in a hit piece last summer in The New Yorker magazine. More recently, the Kochs have been accused of being the power behind the Tea Party and the Wisconsin union initiatives.

Koch Industries is the one of the largest privately held companies in the U.S., and the two brothers are billionaires who have a long history of donations to libertarian groups as well as philanthropic and cultural causes.

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The deficit is largely the result of “feel-good” bipartisan policies supported by the political establishment. But rather than taking credit for the deficit it helped to create, the liberal establishment blames it on political outsiders like the Tea Party who have little influence over public policy. Sometimes, the Tea Party is accused of supporting policies it had nothing to do with.

Writing at his blog at The Atlantic, liberal journalist Andrew Sullivan recently faulted the “Tea Party” for the recent budget-busting deal between Obama and congressional leaders that exploded the deficit by extending tax cuts, unemployment benefits, and government handouts: “immediately after the election, moreover, they did a deal borrowing a huge amount more and adding $700 billion to the debt.”

The irony is that Sullivan, one of Obama’s biggest cheerleaders, had earlier endorsed that very deal, a deal also endorsed by other liberal media like the Washington Post because of the government handouts it contained. In an explanation that was hard to follow, Sullivan said that this new “stimulus package financed by borrowing” would somehow create “the best context for serious reform” of the nation’s finances, providing a “big new stimulus” that would help Obama “as he moves toward re-election.”

By contrast, some Tea Partiers publicly opposed the deal. A Wall Street Journal article quotes a Tea Party activist and Senate candidate saying that “she decided to run after watching Congress pass legislation during this month’s lame duck session, including a package of tax cuts, that added to the national debt.”

Most Tea Party bloggers took no position on the deal. The few that did either opposed it or reluctantly supported it as the best one could expect from a government that would still be dominated by liberals in the next Congress (with Democrats controlling both the White House and the Senate).

I criticized the deal in a blog post that was reproduced at a blog called “Freedom Action“” that includes many Tea Party members. It drew no objections from any blogger or reader at that site (which has more than 300 members). I noted that the billions it will spend on extending unemployment benefits won’t stimulate the economy, but will financially burden states. 30-40 state unemployment funds are already insolvent or teetering on the edge, thanks to past federal extensions of unemployment benefits. Giving people unemployment benefits for years on end discourages people from taking lower-paying jobs, and results in some recipients gaming the system. It encourages people not to relocate in search of work, and not to take productive jobs that they think are beneath them, even if those jobs are the only jobs that they will realistically find once their jobless benefits come to an end, because of the disappearance of the type of job they once performed.

As the Heritage Foundation notes, “The consequences of extended unemployment benefits are some of the most conclusively established results in labor economic research. Extending either the amount or the duration of UI benefits increases the length of time that workers remain unemployed. UI benefits subsidize unemployment. They reduce the incentive unemployed workers have to search for new work and to make difficult choices–such as moving or switching industries–to begin a new job.” (The deal also contains other disincentives to work.)

Admittedly, the deal is not as economically-destructive as some of the measures that Obama previously pushed through Congress on party-line votes, such as the $800 billion stimulus package, which actually shrank the economy in several ways. (The stimulus used “green-jobs” subsidies to send American jobs overseas. 79 percent of those subsidies went to foreign firms, such as an Australian firm that imported Japanese wind turbines, effectively outsourcing American jobs. It also wiped out jobs in America’s export sector.)

After Republicans swept the House in last Tuesday’s elections, President Obama took “full responsibility” for Democrats’ losses, saying: I’ve got to do a better job.

While it’s true that the President and all politicians need to do a better job, I argue at The Washington Examiner that government is not about mobilizing up against two walls, but rather about staying true to some set of tenets.

One of the themes this election was a big step towards smaller government:

What politicians should have learned from the midterms is: This is not about you! This is about us!

Government is a collective tool that helps insure against the worst case scenario. Through government citizens fund minimal public goods like national defense, inasmuch as it’s necessary to keep interference out of people’s private lives.

By making governance about them – what they can pass, what they can do, how much of our lives they, the politicians, can touch – they forget that in this country it is government’s powers that are enumerated and citizens’ rights that are only marginally curtailed.

In the Nov. 2010 midterms Tea Partiers won big. The Tea Party is not a true political party, but rather a contract to keep politicians in line. At least five of the Tea Party’s eight tenets explicitly contradict what Obama has accomplished in his first two years in office.

Take note, political types. The times are changing, and your constituents are tired of your old pork-stuffing ways!

Tea Partiers won big last Tuesday, sending a clear message to politicians that Americans want government’s hands off!

What makes the Tea Party interesting is that it’s not a party at all, really. Political parties operate by establishing a reputation steeped in culture and rhetoric and then shifting values according to whimsy (a political trick prominent in America since at least the Federalists became the Antifederalists). The Tea Party rejects all of that.

Instead, the Tea Party proposes an 10-point contract for governance. These 10 points serve as a metric to determine whether politicians are delivering on their promises. An objective 10 points, so it’s immediately obvious whether a politicians has succeeded or failed.

ABC covered this contract in April, but it’s worth taking a look again (the numbers in parentheses denote percent of votes each item earned on the contract-generating plank):

  1. Protect the Constitution: Require each bill to identify the specific provision of the Constitution that gives Congress the power to do what the bill does. (82.03 percent)
  2. Reject Cap & Trade: Stop costly new regulations that would increase unemployment, raise consumers prices, and weaken the nation’s global competitiveness with virtually no impact on global temperatures. (72.20 percent)
  3. Demand a Balanced Budget: Begin the Constitutional amendment process to require a balanced budget with a two-thirds majority needed for any tax hike. (69.69 percent)
  4. Enact Fundamental Tax Reform: Adopt a simple and fair single-rate tax system by scrapping the internal revenue code and replacing it with one that is no longer than 4,543 words — the length of the original Constitution. (64.90 percent)
  5. Restore Fiscal Responsibility & Constitutionally Limited Government in Washington: Create a Blue Ribbon taskforce that engages in a complete audit of federal agencies and programs, assessing their Constitutionality, and identifying duplication, waste, ineffectiveness, and agencies and programs better left for the states or local authorities, or ripe for wholesale reform or elimination due to our efforts to restore limited government consistent with the U.S. Constitution’s meaning. (63.37 percent)
  6. End Runaway Government Spending: Impose a statutory cap limiting the annual growth in total federal spending to the sum of the inflation rate plus the percentage of population growth. (56.57 percent)
  7. Defund, Repeal & Replace Government-run Health Care: Defund, repeal and replace the recently passed government-run health care with a system that actually makes health care and insurance more affordable by enabling a competitive, open, and transparent free-market health care and health insurance system that isn’t restricted by state boundaries. (56.39 percent)
  8. Pass an ‘All-of-the-Above’ Energy Policy: Authorize the exploration of proven energy reserves to reduce our dependence on foreign energy sources from unstable countries and reduce regulatory barriers to all other forms of energy creation, lowering prices and creating competition and jobs. (55.51 percent)
  9. Stop the Pork: Place a moratorium on all earmarks until the budget is balanced, and then require a 2/3 majority to pass any earmark. (55.47 percent)
  10. Stop the Tax Hikes: Permanently repeal all tax hikes, including those to the income, capital gains and death taxes, currently scheduled to begin in 2011. (53.38 percent)

Many of these items directly contradict legislature that has passed in President Obama’s first two years in office. Sure, this is a reflexive response to the government having gone very far in one direction. But remember: It was this objective metric that spelled out big midterm victories.

Let’s see how objective this criteria stays over the next two years.

CEI President Fred Smith and I have an article in The Daily Caller expressing cautious optimism about yesterday’s election results. Our main points:

-We are (cautiously) optimistic because voters turned out in droves to make a statement against big government, not to endorse GOP policies. But no reforms will happen unless people keep fighting for them.

-Activists have a lesson to learn from the Bush-era anti-war movement. Anti-Iraq War protestors vanished into thin air almost the moment President Obama was elected. They gave up. That’s one reason there are still 50,000 troops in Iraq and America’s presence in Afghanistan has doubled. The next few years will be the true test of the tea party movement. Will it grow complacent in victory?

-GOP politicians have a lesson to learn from their 1994 victory and subsequent fall from grace. The 1994 Republicans gave up as reformers after about six months. Voters kept them around because they did a tolerable job of checking Clintonian excesses. But six years of one-party rule under Bush were more than enough to show that Republicans were far more concerned with staying in power than with shrinking government. Federal spending roughly doubled under Bush, and that was enough to give them the boot.

It will be interesting to see what happens. The 2010 election might be nothing more than a blip on the radar. Or it could be the start of a genuine reform movement that will take on the coming entitlement crisis. We’re hoping for the latter.

By intervening in GOP Senate primaries in Delaware, Nevada, and Colorado, in favor of candidates who went on to lose the general election to relatively unpopular Democratic incumbents, the Tea Party Express may have ensured continued Democratic control of the Senate.  The GOP picked up no more than six seats in the Senate, leaving it with at most 47 seats out of 100. By contrast, in the House of Representatives, where the Tea Party Express played much less of a role in selecting GOP nominees, the GOP took control of the House, picking up around 60 seats.

The GOP’s failure to gain more seats in the Senate has left Obama with a relatively strong hand in making judicial and other appointments.  To stop an Obama nominee from being confirmed in a majority Democratic Senate, Republicans will usually need to come up with 40 votes to filibuster that nominee.  But getting 40 of 47 senators to agree to do that will be difficult in most cases, since the Republican Senators from some states like Maine are liberal on judicial issues, and some others who are not liberal, like Senator Hatch, philosophically object to filibusters over appointments (as opposed to legislation).  This means that except in extreme cases, the GOP will not be able to stop judicial nominees even when the GOP perceives them as disturbingly radical.

The Democrats’ loss of control of the House is a huge rebuke to Democrats and Obama, and reflects public opposition to Obamacare, the failed stimulus package, and the administration’s mishandling of the economy.  But the GOP’s failure to retake the Senate is a rebuke, too, to the stratum of the GOP favored by the Tea Party Express.  The Tea Party Express gave the Democrats and Obama continued control over the arguably most important house of Congress, leaving Obama with the upper hand in many political battles to come.

In September, I discussed in my personal blog how the Tea Party Express’s intervention in Delaware in support of Christine O’Donnell had turned a certain GOP victory into a certain GOP defeat, and how its intervention in Nevada in support of Sharron Angle made the GOP’s quest to oust unpopular Senate Majority Leader Harry Reid an uphill battle.  Had Delaware’s Christine O’Donnell not been nominated, the nominee would have been veteran moderate Republican Congressman and former governor Mike Castle, who was widely popular in Delaware, and was endorsed by New Jersey Governor Chris Christie, who is hardly a liberal RINO (Christie won a straw poll among Virginia Tea Partiers).  Castle would have crushed liberal Chris Coons in the election.  Instead, thanks to Castle’s loss to O’Donnell in the primary (where independent voters could not vote in favor of Castle), Coons easily defeated O’Donnell.

Had Sharron Angle not been nominated in Nevada, the nomination would have instead gone to Sue Lowden, a telegenic candidate with little political baggage who comfortably led Senate Majority Leader Harry Reid in polls, and would have ousted him in November, putting her on a shortlist of potential future GOP vice presidential picks, and obviating the need for a Republican nominee seeking a female vice presidential pick to pick someone with more political baggage, like 2008 vice presidential nominee Sarah Palin, who probably cost McCain at least as many votes as she brought him.  (Owing to the absence of conservative GOP female senators interested in being vice president, McCain had little choice but to pick Palin if he wanted a telegenic vice-presidential nominee who could appeal both to the conservative base and to voters who wanted a gender-balanced ticket.)

Many conservative activists and bloggers think that there is a silent majority of conservatives in every state, based on the fact that their own circle of friends is overwhelmingly conservative. Unfortunately for them, that’s just not true. Most people don’t have much ideology at all, and many that do have an ideology are not conservative. Obama’s low poll results are primarily the result of a bad economy, and secondarily the result of his policy failures and mistakes, not the result of some great conservative awakening. The public is not outraged enough at Obama to vote for anyone who opposes him, no matter how conservative. Indeed, the public finds certain principled conservative positions disturbing, just as it finds certain Obama liberal positions disturbing. People who think the country is conservative beneath the surface are living in a bubble, just like the Obama supporters were deluding themselves when they came to the conclusion that the country had become staunchly liberal just because Obama won in 2008 based on the bad economy.  (Conservative activist Mark Levin claimed that Delaware could be won by O’Donnell because it was not a “deep blue” state — something that was true 30 years ago when Levin worked in the trenches, but is not true today, when Delaware is indeed deep blue, with Obama defeating McCain by a massive, enormous margin of almost 25 percent in 2008 – vastly more than in America at large, just as Kerry and Gore decisively defeated Bush in Delaware in earlier elections that Bush won nationally.  Levin, who makes his living in the conservative echo chamber by selling books read only by other right-wingers, personally attacked conservative lawyer Paul Mirengoff for pointing out the inconvenient truth that O’Donnell could not win a general election in Delaware.  Mirengoff’s influential conservative blog Powerline may have saved George Bush from defeat in his 2004 re-election campaign by exposing the Rathergate scandal.)

One illustration of the American public’s basically non-ideological, not-very-conservative nature, is the Nevada senate race, where Angle’s bluntly conservative views and candor cost her in the polls, and were characterized even by GOP political analysts as gaffes. If there actually were a silent majority of conservatives in America, Angle would have won, but she lost, even in a state that has a slight GOP tilt in gubernatorial elections, and even as the GOP won the governor’s race and two of three House races. (Yes, I am well aware that in polls, more people self-describe as conservative than liberals. But the so-called conservatives actually aren’t very conservative, as conservative analysts at places like American Enterprise Institute have noted. Self-described liberals are liberals across the board on both social and economic issues. Self-described conservatives include four types of people: (1) true-blue conservatives on both social and economic issues; (2) social conservatives who don’t understand economics and thus are liberal on economic issues; (3) economically-conservative people who are liberal on social issues; and (4) people who are not conservative on either economic or social issues, but call themselves that for reasons that are unclear. True-blue conservatives are actually rarer than hardcore liberals. Economic conservatives are also rarer than liberals.  Most people are neither conservatives nor liberals.  Sometimes the truth hurts. This is the unpleasant truth for conservatives. The Tea Party Express needs to deal with this truth, rather than living in fantasy-land.)

In Colorado, the Tea Party Express backed prosecutor Ken Buck in the GOP primary over former Lieutenant Governor Jane Norton, who had already been elected to statewide office and was more telegenic than Buck, resulting in the GOP’s narrow loss in November to Democratic incumbent Michael Bennet.  After a few controversial comments about “high heels,” and subjects like the origins of homosexuality and whether the founding fathers intended a full separation of church and state — all subjects entirely irrelevant to the Senate race and which Buck would have been wise to avoid — Buck lost to unpopular incumbent Michael Bennet by a fraction of one percent of the vote.  Norton would have narrowly won, and would have done better among female voters (In addition to his self-inflicted wounds, Buck was also injured by a smear campaign that depicted him as a sexist based on his perfectly reasonable decision not to bring a sex-crimes prosecution where reasonable doubt existed, a decision that even liberal newspapers admitted was a reasonable one.  Norton would not have had that baggage, and would have fared better among female voters.)