Americanly Yours

Well theyve gone and done it.  Congress has passed a bill that has been consistently opposed by the majority of Americans. This bill is horrendously costly and will cause the country’s deficits and total debt to rapidly expand–something that we can hardly afford when we are already in grave danger of losing our AAA credit rating. After watching debate over this bill on C-SPAN, it is clear that the Congressional supporters of this bill seemed to be intentionally ignoring both the financial problems with this bill, as well as the potential that this bill will lower the quality of health care available for all Americans.

For confirmation of this, check out the C-SPAN coverage of this issue, especially the speeches starting from around 70 minutes until they begin voting on the rule.

President Obama promised that American people that he would pursue a bipartisan approach to health care reform.  Unfortunately for the American people, President Obama did no such thing.  Representative Paul Ryan (R-WI) and several other Republicans have been begging President Obama and the Democratic leadership to listen to other ideas and to move to attack some of the problems with health care that the vast majority of Americans agree on.  This bill is not bipartisan in any remote sense of the word.  In a clear sign of both idiocy and doublespeak, Nancy Pelosi disagreed and declared that a “bill can be bipartisan without bipartisan votes.” The argument here was that because Democrats have included a few small ideas that Republicans and independents support in the bill that it can be called bipartisan.

In fact, the only thing that can even be said to be bipartisan about this bill is the opposition to it.  There are no Republicans supporting this bill; it is opposed by every single Congressional Republican and a number of Congressional Democrats.

But, even if this bill had been a perfect example of bipartisan compromise, it is still wrong.  On top of being immoral and undemocratic, this bill is blatantly unconstitutional.

Alas, they have passed it and the battle is over.  What do we do now, you ask?:

Well, we have three choices here.  We can:

1)  Admit the fight is over, accept this new national health care system, its immense costs and potential to result in a level of care much lower than the current level.  Accepting this option is akin to tacitly accepting that our federal government no longer has any limits and thus, is no longer bound to the contractual restraints placed upon it by the Constitution.

2)  Accept that the battle is over, but focus our efforts on repealing this bill.  Republicans have little chance of retaking the Congress in November, and given their history of supporting big government programs, there is little if any reason to believe that they will seek to implement a health care system based on the principles of freedom.

3)  Take the passage of this bill as a setback and as the loss of a major battle, but regroup and get ready for a major guerrilla offensive.  The centralized approach to fighting this bill should be abandoned for now.  This battle simply cannot be fought on the national level right now.  The answer is for a number of different methods of attacking this plan.

Clearly, I favor option 3.  Under this option, we must urge our State legislators to nullify this and all future health care bills coming from D.C.  We must urge our State to follow the lead of Idaho and sue the federal government (however, we should also realize that it is unreasonable to expect federal courts to curb federal power).  Individuals and groups must follow a similar strategy and file lawsuits against the implementation of this bill.  One good thing about this bill is that many of its provisions do not take effect until 2013 and 2014, giving us plenty of time to try out various strategies

The important thing here is to not rely on only one strategy.  We must favor a decentralized strategy for fighting this bill for the same reason that we must facor a decentralized system of government.  The consequences of failure in a “one size fits all” system are too great.  By fighting a number of separate battles against the bill, we can be sure that the failure of one strategy will not lead to our total failure.  Additionally, the beauty of this strategy is that the success of any one of the single strategies that we are using to fight this bill could result in the death of this bill.

The Constitution was a contract between the States to create a federal government.  In creating the federal government, the Constitution also served as a contract between the States and the federal government.  The Constitution delegated certain powers to the federal government and reserved the remaining powers to the States (and to the individual people).

Article 1, Section 8 of the Constitution delegated certain powers to the federal government.  The 9th and 10th amendments to that Constitution placed every power not given to the federal government in the hands of the States and the people.

[The 9th Amendment reads: "The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people."]

[The 10th Amendment reads: "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people."]

This is the plain and simple truth.  Anyone who argues that the Constitution must adapt to changing times is ignoring the fact that the Constitution contains the mechanisms for this adaption in the amendment process. Any expanse of federal power that is not covered by the Constitution or by subsequent amendments is a direct violation of the Constitutional contract.  Thus, if the federal government wanted to lawfully implement a national health care system, Congress and the States would need to ratify a Constitutional Amendment granting this power to the federal government.

A contract obviously cannot be expected to enforce itself–Party A must be vigilant to ensure that Party B does not ignore the provisions of the contract and take advantage of Party A.  But, suppose that Party B does take advantage of Party A–what now?

The States as sovereign actors must do their parts to reject the improper violations of the Constitutional contract by the federal government.  This means that State governments must refuse to implement–or to allow the implementation of–this violation of the Constitutional contract by one party.

An illegal law is no law at all.  A law that expressly violates the Constitutional contract is invalid and can be ignored by the States.

37 of the 50 States are considering bills to nullify this health care bill.  That is, these States are refusing to allow the federal usurpation of local power to continue (at least in the area of health care).  Several days ago, Idaho became the first State to sign a bill into law requiring the State’s Attorney General to sue to federal government over this bill.  States like Virginia, Arizona, and Utah have also passed nullification bills and are only awaiting the signature of their governor.  Many of these States are considering laws that would lead to the imprisonment of any federal official attempting to enforce any law which is not explicitly authorized under Article 1, Section 8 of the Constitution.

There has been a long history of nullification to prevent the federal government from implementing unconstitutional or unjust violations of the Constitutional contract.  This history has included but is not limited to the following:  attempts by Northern States to nullify the propsed military draft in the War of 1812 and actions by Maryland and Wisconsin to nullify the Fugitive Slave Act (and to charge anyone who took an escaped slave back into captivity with the crime of kidnapping).

More recent examples of nullification include (but are certainly not limited to) the nullification of the REAL ID Act by 25 States (effectively blocking the federal government from implementing a national identification card) and the nullification of federal marijuana laws by thirteen States.

We can and must apply these same principles to this unwanted health care bill.  Many people have taken time in the last year plus to contact their Congressmen and Senators to tell them to vote against national health care.  This approach has failed, but the fight is far from over.  We can win this fight!

We need to put the pressure on our State officials to consider nullifying this and all other unconstitutional violations of our rights.  Please take some time this week to contact your State representatives to tell them to support nullifying this and any other federal health care bills.

Just as in any contract, one side could not grant himself the right to edit the terms of the contract and do as he pleased, the federal government cannot ignore the terms of the Constitutional contract and do as it pleases.  The States must do all that they can to prevent any further violations of the Constitutional contract by the federal government.

Nullifying unconstitutional laws will show the federal government that the States are serious upholding the Constitutional contract and its balance of power.  The federal government will be less likely to pass unlawful laws if they know that these laws will not be enforced on the State level.

Enough violations of a contract–any contract–by one party eventually render that contract null and void.  If the federal government continues to violate the Constitutional contract and encroach on the domain of the States, the States must reserve the right to peacefully withdraw from the contract and fully control their own affairs.

Americanly Yours,

Phred Barnet

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I got this interesting cartoon from Tarrin Lupo over at LCL Report a while back.  Enjoy.

Americanly Yours,
Phred Barnet

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The non-partisan Congressional Budget Office recently released a report saying that the President’s healthcare plan would be very costly–the CBO estimated that the plan would cost around $1,000,000,000,000 [$1 trillion] in new debt and would only decrease the percentage of people without health insurance by around 1/3.  From the CBO director’s blog:  “According to our preliminary assessment, enacting the proposal would result in a net increase in federal budget deficits of about $1.0 trillion over the 2010-2019 period. When fully implemented, about 39 million individuals would obtain coverage through the new insurance exchanges. At the same time, the number of people who had coverage through an employer would decline by about 15 million (or roughly 10 percent), and coverage from other sources would fall by about 8 million, so the net decrease in the number of people uninsured would be about 16 million or 17 million.“

In other words, this plan is extremely expensive and will only accomplish around 1/3 of its goal.

$1,000,000,000,000 [$1 trillion] over 10 years comes out to $100,000,000,000 [$100 billion] in new debt per year from this program.  If you divide that up amongst the $304 million people living in this country, the cost of this program in new debt per person per year is $328.95… BUT…

Not everyone pays (ie, the poor) or even files for taxes (ie, children) .  According to the IRS, 132,276,000 individual tax returns were filed in 2006.  Of these returns, 43,400,000 had no tax liability (and many actually had a negative tax liability).  This means that taxes were paid on 88,876,000 tax returns. [Note:  i used the 2006 IRS numbers because I was unable to find a percentage of returns that didnt pay taxes in 2007]

Now, if we take the $100,000,000,000 [$100 billion] and divide it up among the 88,876,000 income tax returns that paid taxes, we find that those Americans who do pay taxes will be forced to pay an average of $1125.16 per person per year to finance President Obama’s healthcare plan. Remember, this is an average–many Americans will be forced to pay much more than this.

And remember, this $1125.16 per taxpayer will only cover about 1/3 of those Americans who do not currently have health insurance.  Covering the other 2/3 will undoubtedly be much more expensive.

As a taxpayer, are you OK with the government telling you that you HAVE TO pay $1125.16 per year to pay for someone else’s healthcare?  If not, you need to call or email your representative and tell them that you oppose this plan–before it is too late.

Americanly Yours,

Phred Barnet

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General Motors declared bankruptcy yesterday morning. This move had been much anticipated and probably didnt surprise anyone.

Presidents Bush and Obama gave General Motors billions of dollars to help it avoid bankruptcy, yet the inevitable still happened. No matter what your stance on bailouts and government interventions are, you probably agree that this money was wasted.  If you support bailouts and nationalizations, then you would probably argue that the money was wasted because the government could have and should have) bailed out and taken over GM six months ago.  If you are opposed to bailouts and nationalizations, then you would be opposed to any and all government assistance for GM.  More money will be wasted on GM in the future.

According to the Washington Post:  “During the GM bankruptcy, the United States aims to raise its investment in the company to $50 billion, take a majority stake in it and name most of its directors, giving the government unprecedented control over one of the nation’s largest manufacturers.”

I dont think that you can seriously deny that the United States is no longer a Capitalist Nation.  We have now officially morphed into a socialist country.  Yesterday was another sad day for Capitalists who again were forced to watch while the government continued to destroy this once great Nation.

President Obama and other supporters of these interventions have promised that they will be temporary.  I dont believe this and neither should you.  Thomas Sowell says that “nothing is so permanent as a temporary government program.”  Historically this has proven again and again to be true.  There are still programs in effect from the Great Depression which were said to be temporary at the time.  A 3% excise tax on phone use was enacted as a temporary measure in 1898 to help pay for the Spanish-American War.  This “temporary” tax lasted 108 years until it was finally ended in 2006.

Government programs, actions, and interventions tend not to end.  It is important to oppose them as they happen, while these actions are still fresh in the minds of the public.  If the government does not sell its stake in General Motors within the next few years the vast majority of people will cease to care, opposition will subside, and the government will continue to control General Motors forever (or at least for quite a long time).

Even if our government sells its stake in General Motors within the next few years, there will still be a tendency for future administrations to use Presidents Bush and Obama’s actions as precedents for future interventions and nationalizations.

President Obama told NBC’s Brian Williams that the government would be taking a controlling stake in General Motors. He also said that he essentially had no choice but to do so.

But, President Obama did have a choice.  A liquidation bankruptcy of GM might have caused temporary stress for the economy, but this stress would have been temporary and would have smoothed out in the long run.  Under a liquidation bankruptcy, General Motors would have been broken into pieces and sold off piece by piece to the highest bidder.  Every brand name, factory, patent, and all real estate owned by GM would have been sold off.  The money recovered from these sales would have gone to pay as much of the money owed to GM bondholders–who  to the company in good faith–as possible.

The brand names would have been sold–probably to existing car companies, although they possibly would have been sold to venture capitalists who were looking to start a new car company.  The factories would have been sold to new owners (or the same venture capitalists) who would either continue to make cars in them or would refit them for some other kind of production.  GM’s patents would have fetched lucrative amounts of money at auction.  Purchasing these patents at a discounted auction price could have helped move other automakers years forward in their research and development, saving them billions of dollars.  For example, GM was years ahead of the competition in developing fuel cell cars.

The auction process might have been stressful while it was being sorted out, but it would have been an efficient way to deal with General Motors.  Instead, our government has pledged to loan GM an additional $50,000,000,000 [$50 billion].  However, GM owes creditors $172,800,000,000 [$172.8 billion], meaning that the government’s invenstment will be unlikely to stop at $50,000,000,000 [$50 billion], just as AIG’s initial $85,000,000,000 [$85 billion] bailout ended up doubling.

You can argue that government control of General Motors will save American jobs, although this argument is tenuous at best. General Motors is losing money for several reasons including: their cars are not up to par with those of Honda, Toyota, Nissan, and Ford, their union contracts force them to pay their current and former workers much more money than similar workers at Honda, Toyota, and Nissan, and they have been slower to innovate than have their Asian rivals.

Toyota, Honda, and Nissan have been continually building more and more of their cars in America, while General Motors, Chrysler, and Ford have been building less. Last November, I wrote an article detailing my opposition to all bailouts, but said that if the government had to bailout auto companies, I would rather it bailout the successful ones (ie Toyota and Honda).  At least this way money would be flowing to innovative companies who have a chance of paying back the loans, rather than to sluggish companies who refuse to adapt and will be unlikely to repay any loans.

The United States government now has a controlling stake in General Motors and a very large stake in Chrysler.  General Motors, the world’s second largest automaker, is now owned by the United States government (with a minority stake being held by the UAW).  Chrysler is now owned by the UAW (with a sizable minority stake being held by the US government).  Additionally, a significant percentage of Nissan is owned by the French government (the French government owns 15.7% of Renault which owns 44.4% of Nissan).  This is not fair to Ford, Honda, and Toyota. These three companies have to compete with three large automakers who are owned by large and powerful governments who have made it a matter of public policy to ensure that the automakers they own do not disappear.  As a Ford stockholder, I’m pretty mad that a company that I have invested in (because I believe in its products and its management) now has to compete with a powerful government which can print money to pump into Ford’s competitors as it sees fit.  Additionally, the US government also had the right to increase regulations on the auto industry which can hurt Ford and benefit its government owned competitors.

As unfair as this is to Ford’s shareholders, this is extremely unfair to the taxpayers who will have to foot the bill for these bailouts.  The tens of billions of dollars in additional funding for GM are not the whole picture.  American consumers will have to pay thousands more for their cars in the future due to the inefficiencies being created by the government bailiuts.  The United States government is keeping car companies in business which have no business being in business.  It is also mandating that certain GM models now be produced in America, rather than in foreign countries.  While this may sound like a good thing in an economy that is hemorrhaging jobs, it is not.  GM has chosen to produce cars overseas becaue it is cheaper to do so.  Simply put, forcing GM to produce cars here will raise the cost of those cars and will make American consumers poorer.

Americanly Yours,

Phred Barnet

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I have written about Dr. Thomas Sowell here before.  I think he is possibly the smartest man in the country.  I scoured the interweb and found a bunch of great quotes from him.  Enjoy.

“People who talk incessantly about “change” are often dogmatically set in their ways.  They want to change other people.”

“Much of the social history of the Western world over the past three decades has involved replacing what worked with what sounded good.  In area after area – crime, education, housing, race relations – the situation has gotten worse after the bright new theories were put into operation.  The amazing thing is that this history of failure and disaster has neither discouraged the social engineers nor discredited them.”

“One of the sad signs of our times is that we have demonized those who produce, subsidized those who refuse to produce, and canonized those who complain.”

“The next time some academics tell you how important ‘diversity’ is, ask how many Republicans there are in their sociology department.”

“The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it.  The first lesson of politics is to disregard the first lesson of economics.”

“Prices are important not because money is considered paramount but because prices are a fast and effective conveyor of information through a vast society in which fragmented knowledge must be coordinated.”

“A recently reprinted memoir by Frederick Douglass has footnotes explaining what words like ‘arraigned,’ ‘curried’ and ‘exculpate’ meant, and explaining who Job was.   In other words, this man who was born a slave and never went to school educated himself to the point where his words now have to be explained to today’s expensively under-educated generation.”

“No matter how disastrously some policy has turned out, anyone who criticizes it can expect to hear: “But what would you replace it with?”  When you put out a fire, what do you replace it with?”

“Capitalism knows only one color: that color is green; all else is necessarily subservient to it, hence, race, gender and ethnicity cannot be considered within it.“

“Each new generation born is in effect an invasion of civilization by little barbarians, who must be civilized before it is too late.”

“If you are not prepared to use force to defend civilization, then be prepared to accept barbarism.”

“If you have always believed that everyone should play by the same rules and be judged by the same standards, that would have gotten you labeled a radical 60 years ago, a liberal 30 years ago and a racist today.”

“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.”

“Liberals seem to assume that, if you don’t believe in their particular political solutions, then you don’t really care about the people that they claim to want to help.”

“Mistakes can be corrected by those who pay attention to facts but dogmatism will not be corrected by those who are wedded to a vision.”

“Mystical references to society and its programs to help may warm the hearts of the gullible but what it really means is putting more power in the hands of bureaucrats.”

“Prices are important not because money is considered paramount but because prices are a fast and effective conveyor of information through a vast society in which fragmented knowledge must be coordinated.”

“Socialism in general has a record of failure so blatant that only an intellectual could ignore or evade it.”

“Tariffs that save jobs in the steel industry mean higher steel prices, which in turn means fewer sales of American steel products around the world and losses of far more jobs than are saved.”

“The most basic question is not what is best, but who shall decide what is best.”

“The most fundamental fact about the ideas of the political left is that they do not work.   Therefore we should not be surprised to find the left concentrated in institutions where ideas do not have to work in order to survive.”

“The real goal should be reduced government spending, rather than balanced budgets achieved by ever rising tax rates to cover ever rising spending.”

“Too much of what is called “education” is little more than an expensive isolation from reality.”

“What ‘multiculturalism’ boils down to is that you can praise any culture in the world except Western culture – and you cannot blame any culture in the world except Western culture.”

“Would you bet your paycheck on a weather forecast for tomorrow?  If not, then why should this country bet billions on global warming predictions that have even less foundation?”

“The assumption that spending more of the taxpayer’s money will make things better has survived all kinds of evidence that it has made things worse.   The black family- which survived slavery, discrimination, poverty, wars and depressions- began to come apart as the federal government moved in with its well-financed programs to “help.””

“Most people who read “The Communist Manifesto” probably have no idea that it was written by a couple of young men who had never worked a day in their lives, and who nevertheless spoke boldly in the name of “the workers”.”

“Despite a voluminous and often fervent literature on “income distribution,” the cold fact is that most income is not distributed: It is earned.”

“It is hard to imagine a more stupid or more dangerous way of making decisions than by putting those decisions in the hands of people who pay no price for being wrong.” [bureaucrats]

What is ominous is the ease with which some people go from saying that they don’t like something to saying that the government should forbid it.  When you go down that road, don’t expect freedom to survive very long.

Americanly Yours,

Phred Barnet

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