May 26, 2013

C is for Comeback America by David Walker

unemployment-rate

The national unemployment rate.

Sometimes, I’m a cynic.

For example, I don’t trust that Democrats care as much about the Second Amendment and gun regulation, immigration reform, or gay marriage as they say (heck, I’m not even sure Republicans care as much as they say, either, but that’s another post). I think they’re, largely, cherry picking issues that they can use to pander to various demographic groups and distract from the relatively unexciting business of a slow economy which, by virtue of President Obama’s reelection, they own.  In spite of what political left may argue, little has improved in the economy since the election last year. Unemployment nationally still hovers between 7.9 and 7.7%, economic growth slowed at the end of last year, and personal income is down 2.2% this year.

So why aren’t we talking about economic growth and how to bring about an economic “comeback” for America?

A couple years back, I read an interesting book by David Walker, former Comptroller of the United States. I don’t necessarily agree with everything in it, but I think it can add to the conversation on what needs to be addressed to move our country into a more competitive position than slow growth and stagnant personal incomes.


 

Comeback America

Comeback America: Turning the Country Around and Restoring Fiscal Responsibility by David M. Walker

As the former comptroller general of the United States, Walker knows a little about the fiscal workings of the modern federal government. For fifteen years, he served under both Republican and Democratic presidents, from Reagan to Clinton to the Bushes, and had a unique opportunity to call into question the decisions that have lead to our current fiscal woes. And in Comeback America, he doesn’t hold back.  We are a great country, but we are putting ourselves in a difficult position:

We live in a great and resilient nation. For all of our problems, the United States remains a global superpower and a beacon of liberty for people around the world. We have much to be proud of and thankful for. But I am here to tell you that if we don’t find a way to get spending under control, we will put our nation’s economy and international standing at risk and bequeath to our children a world of severely diminished opportunities.

It’s not too late. But we had better act soon.

After opening the book with describing our current fiscal problems–looking at the America of 2030 if we continue our current trajectory, examining principles from our history, and spelling out the challenges that President Obama faced as he came into office–Walker lays out his recommendations in each major area of federal spending in the succeeding chapters.

Walker skips right over earmarks and discretionary spending, which account for only a very small percentage of our federal budget, and goes right to the heart of  the problem: entitlements, insufficient tax revenues, spending deficits, Defense Department inefficiency, and systemic problems. Each gets a chapter that provides context, history, and recommendations.

Beyond easy accessibility, perhaps the most important reason you should read this book is the lack of partisan taint. His approach, and recommendations, are nonpartisan, pragmatic, and worthy of consideration.  He

David Walker

approaches the problems with one consideration–what is right for America and Americans?

Walker calls for not only the reform of entitlements, review and oversight of inefficiencies in several–large–areas of government, and the reform of the tax code, but also for changes in our very elective processes and to the constitution. It isn’t enough to just change policies–we also need to change the systemic problems with how we got here and make it difficult to get here again.

In the end, Walker makes a compelling case for, in his words, not a “small government or a big government[,]” but an effective government–one that is fiscally responsible, focuses on the future, and looks out for the collective best interest of America and Americans rather than the narrow agendas of various special interests.

As one friend of mine has been known to observe–both parties are glad to spend, as long as it on the program that benefits its constituency. The right will spend on national security, and the left will spend on social programs. Both are spending, just not on the same thing. Indeed, fiscal responsibility is a claim that neither elected major national party can claim–at least not in recent memory or with any measure of integrity.

Despite the current difficulties, exacerbated by the pop of the housing bubble and the subsequent recession, America can “comeback.” Walker’s book is full of great ideas and suggestions to see that that happens. I recommend you pick up a copy soon. You might find yourself asking different questions of your elected representatives than their position on immigration. 


Publius Online is participating in the Blogging from A to Z Challenge, a month long quest to post every day. Each day should match a corresponding letter of the alphabet. Today is C.

TANSTAAFL: Obamacare turns three and the costs continue to tally [Infographic]

English: Barack Obama signing the Patient Prot...

This week in TANSTAAFL news: it’s  Obamacare‘s third anniversary, and, as then Speaker Nancy Pelosi famously said, we had to pass it to find out what’s in it.

We’re still trying to find out what’s in it. Today, for your pleasure, a small infographic on the costs that have come with the ironically named Affordable Care Act.


 

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“There ain’t no such thing as a free lunch,” said Robert Heinlein. It’s as true today as it was fifty years ago. Someday, the piper’s going to come calling, and the cost may be more than we can afford. What then?

 

The “individual mandate” is a “tax.” Voters are not noticeably relieved.

A colleague pointed this interesting point out to me as we have been reviewing the Affordable Care Act (aka “Obamacare”) decision today:

The government devoted 21 lines of its brief to argue that § 5000A was a tax, and it’s longest statement on the issue at oral arguments was 50 words.

And yet, that’s the crux of what is keeping the individual mandate alive.  I doubt voters feel much better that the individual mandate is really a tax (or, as it’s called in the ACA, a “shared responsibility payment.”)

Before you eat another french fry… [infographic]

Before you eat another french fry, think about this:

 

Tough love, you could say. I’m gonna miss my fries.

[The Weight of the Nation]

 

Obamacare before the Supreme Court: “The Emperor Has No Clothes!”

Courtroom illustration shows Deputy Solicitor General Edwin Kneedler speaking to Justice Antonin Scalia and Chief Justice John Roberts of the U.S. Supreme Court in Washington

In a case of “the Emperor has no clothes,” the justices played the part of the skeptic to the Obama Administration’s protestations of Obamacare’s constitutionality.  With the oral arguments on constitutionality of the Affordable Care Act over, let’s take a look back at the reactions to the arguments:

First, the crux of the argument? That the government cannot regulate “inactivity,” an angle that has been pushed by Georgetown professor Randy Barnett:

On Monday, as the court began three days of arguments, questioning by the nine justices suggested they were ready to review the law now rather than wait until it has fully kicked in. That lays the groundwork for arguments for the challenge championed by Professor Barnett: that Congress’s power to set rules for commerce does not extend to regulating “inactivity,” like choosing not to be insured.

Apparently, the Supreme Court is buying the argument, much to the Obama Administration’s dismay.

In “Obama’s Supreme Court Disaster,” Adam Serwer says that the government’s lawyer Donald Verilli should be glad that the Supreme Court doesn’t allow cameras in the court room; his performance was that bad.

Stepping up to the podium, Verrilli stammered as he began his argument. He coughed, he cleared his throat, he took a drink of water. And that was before he even finished the first part of his argument. Sounding less like a world-class lawyer and more like a teenager giving an oral presentation for the first time, Verrilli delivered a rambling, apprehensive legal defense of liberalism’s biggest domestic accomplishment since the 1960s—and one that may well have doubled as its eulogy.

Investors Business Daily feels bad for Verilli, but doesn’t blame him. The Affordable Care Act just isn’t constitutional, the editorials says.

We almost felt sorry for Donald Verrilli, the solicitor general who had to defend the constitutionally indefensible. Over three days of intense interrogation by nine Supreme Court justices, Verrilli failed to muster a single coherent, reasonable argument in support of the ObamaCare law’s constitutionality.

Instead, his shambling, unfocused talking points left the government case in disarray — underscoring what a poorly conceived, badly designed law this was in the first place, and why it must be overturned.

Some think that the disasterous arguments have put the Obama Administration on the defensive over the heart of Obamacare, the individual mandate on Americans to buy healthcare insurance.

That’s a purely political argument to a constitutional question. [White House Press deputy press secretary] Earnest  offered no defense along the lines of the precedential history of Congress and the commerce clause. It is the reach and scope of commerce-clause authority that is at the heart of the high court’s scrutiny of the health care law.

A week ago, ACA supporters were looking forward to a triumph. Now, they’re counting their losses. What happened?

Perhaps the most telling moment was during a question from Justice Kennedy. Ilya Shapiro describes it:

By this point the government’s head appellate advocate was on his heels, dodging increasingly skeptical queries, until Justice Kennedy delivered what in poker would be seen as the key “tell”:

JUSTICE KENNEDY: I understand that we must presume laws are constitutional, but, even so, when you are changing the relation of the individual to the government in this, what we can stipulate is, I think, a unique way, do you not have a heavy burden of justification to show authorization under the Constitution?

Although you can’t hear it on the audio recording, the audience gasped.

Just like that, the headlines started changing.

The law isn’t dead, yet though, say supporters.

As Mark Twain might say, reports of Obamacare’s demise are greatly exaggerated. While the conservative justices expressed considerable reservations about the law’s scope, Justice Kennedy, the key swing vote, also noted, near the very end of the argument, that the unique context of the healthcare market may be sufficient to validate the “individual mandate.” The biggest challenge the government has faced in defending the law has been the articulation of a limiting principle, and by argument’s end it seemed that Justice Kennedy might have heard one that he could sign on to. If he does vote to uphold the law, it’s possible that Chief Justice Roberts will join him, in the interest of not having the case decided by a single vote, in which case the vote would be 6-3.

On the other hand, Dr. Milton Wolf in the Washington Times is more than sanguine about the demise of Obamacare. He’s predicting complete overturn, and, if not, the downfall of America.

The die is cast: Obamacare will not survive. This is not a prediction of how the Supreme Court will rule on President Obama’s health care takeover, mind you. It’s the harsh reality that if Obamacare does not die a judicial or political death – or better yet, both – it will die an economic death, and if it does, it will take America down with it.

Obamacare’s costs are exploding in the land where budgets already have burst. The $900 billion bargain-basement 10-year cost estimate that Mr. Obama promised for his overhaul recently ballooned to $1.8 trillion. Of course, these are still just estimates, and considering that the government underestimatedMedicare’s cost by a factor of 10, who really knows how massive the final price tag will be?

Welcome to the United States of Greece, where our $15.6 trillion national debt has surpassed the size of our total economy.

Which begs the question: if not Obamacare, what? Healthcare reform is clearly necessary. In the Chicago Tribune,

“One way or another, Congress will have to revisit it in toto,” Justice Antonin Scalia said of the health law.

One way or another.

That should be a clarion call in Washington. The prospect that the court will strike down all or part of the law known as Obamacare hands political leaders of both parties a formidable challenge — and a vast opportunity: a second chance to get health care reform right.

On that point, James Pethokoukis asks “What will Republicans do if the Supreme Court kills healthcare” reform and suggests that perhaps combining Rep. Paul Ryan’s plan (block grants to states for Medicare0 with future president Mitt Romney’s plan (known as the “Hubbard Plan“) might be workable.

The Hubbard Plan has five elements: 1) allow all Americans to deduct from income taxes all their healthcare expenditures—premiums, employee contributions, out-of-pocket costs, etc.; 2) deregulate insurance markets to foster nationwide, portable health insurance; c) making health information more available; d) control anti-competitive behavior such as hospital mergers; e) malpractice reform.

In the meantime, stay tuned. The law hasn’t been overturned, yet, and still may stand. While you’re waiting, jog on over to the Sweaty Federalist for his snark on some of the arguments being made to uphold the law.

[AEI] [Glenn Hubbard] [Mother Jones] [Washington Times] [Investors Business Daily] [National Journal] [The Nation] [Chicago Tribune] [New York Times]

Huffington Predicts the Demise of Obamacare

[h/t Aaron Bludworth]

 

 

 

 

 

 

 

 

 

Obamacare Proponents Brace for Supreme Court Smackdown

 Jason Kane is a recovering rock star and an attorney in Salt Lake County. He is an occasional contributor to Publius Online.

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In the days leading up to the Supreme Court oral arguments on the constitutionality of President’s Obama’s signature health care law, there was no end to the media speculation about which conservative leaning justice(s) would leave the dark-side and vote to uphold Obamacare. We were treated to a barrage of statistics touting the popularity of Obamacare, reminders that Republicans had supported mandates in the past and other specious arguments that have no bearing on the constitutionality of the law. Self-assured Progressives, it seemed, had little concern that socialized medicine was in any danger.

After one day of arguments that didn’t go particularly well for the government, the Obamacare cheerleaders seem to be in full back-peddle mode. One blog post at the Daily Beast is especially entertaining, arguing that if the individual health insurance mandate is struck down, it will actually be a boon to Obama’s reelection. Obama would no longer have to defend the controversial law and be free to run on his other spectacular achievements, like killing Bin Laden and… killing Bin Laden. This line of thinking, of course, flies in the face of common sense and everything we know about politics. Losing is bad for business and tends to embolden the opposition. In this particular election year, it also happens to help rid Romney of much of the health care baggage that continues to poison the well with many Republicans.

To be sure, I think it is premature to start dancing on the grave of Obamacare. But the tough skepticism exhibited by Justice Kennedy, the left’s only hope in a 5-4 decision, gives Obamacare proponents good reason for concern. We cannot foretell the outcome based on oral arguments alone, though they do seem to hold particular weight in this case. At the very least though, the seeds of self-doubt have been sewn among the Progressives. We should allow ourselves savor this rare phenomenon while it lasts.