Well, the verdict is in. The Republicans are being cast as the party of no.  The party without ideas.  The party of obstruction.

Please make no mistake about it, this marketing push isn’t really about obstruction, but about the upcoming elections.  Just as President Clinton did brilliantly prior the 1996 elections when he cast all Republicans as following Newt Gingrich and obstructing spending laws, the Obama administration is moving forward in much the same pattern.

This is possible because the White House, regardless of occupant, has historically been able to control the news cycle.  In my opinion, this should be an indictment on journalism as a whole when alternatives which exist aren’t being reported, but simply put:  when the President talks, news happens.  When your normal representative talks, you’re lucky if you even hear about it.

It worked during the Clinton Administration on spending, it worked during the Bush (43) Administration on the Patriot Act, & it certainly might work again this time. Irregardless, the campaign is back and in high gear (here via USA Today):

…”Too often, the Republican leadership in the United States Senate chooses to filibuster our recovery and obstruct our progress,” Obama said. “And that has very real consequences.”…

Or here via NY Times blog, here via WaPo, & on and on and on…

From a critical point of view however, obstructionist should not automatically be a pejorative.   Without analyzing what exactly is being obstructed, this is little more than name calling.

As an example, if say in the 1940s Congress was actively trying to “obstruct” the internment of thousands of innocent Japanese-Americans, this would not only be a moral good, but any thoughts to compromise solely to be seen as a non-obstructionist would be wrong.  What would be a compromised alternative?  House arrest?

Additionally, we have to be on the lookout for the differences between the marketing of bills and their actual language.  Think of the new health care legislation.  President Obama’s promises of more health care for all at cheaper prices, simply don’t seem to be fulfilled by the 2500 page law passed… or maybe they are being fulfilled, but like the Patriot Act, no one really knows what the new legislation actually means (here via Cato):

…The Patient Protection and Affordable Care Act represents the most significant transformation of the American health care system since Medicare and Medicaid. It will fundamentally change nearly every aspect of health care, from insurance to the final delivery of care.

The length and complexity of the legislation, combined with a debate that often generated more heat than light, has led to massive confusion about the law’s likely impact….

Or on yesterday’s Meet The Press Rep. Van Hollen stated (transcripts here via MSNBC):

…The frustration is there are lots of important bills to push for jobs that are sitting over in the Senate.  But it’s not the fault of the Democratic leadership in the Senate.  I mean, frankly, you know, John Cornyn and his allies have been trying to block a whole lot of very important jobs measures.  We in fact sent a piece of legislation over very recently that would remove these perverse tax incentives to ship American jobs overseas, that give American corporations a bonus if they ship American jobs overseas….

Just like health care, the basic idea that our representatives are working on private job creation incentives is a good one.  But just like the Obama Administration’s promises on health care, Rep. Van Hollen is selling us a job creation bill which has little chance of actually creating jobs.

To translate – what they mean by “removing incentives” is to increase taxes on businesses who outsource.  Now, some may want this to happen for various reasons, but the economics are pretty straight forward.  Tax increases have never increased jobs & forcing a tax such as this could actually result in companies simply moving their head quarters as well.

To be fair, there are bills I don’t believe the Republicans should block, for instance the extension on unemployment benefits (though it seems likely to pass soon: here via The Hill).

Yes, the point isn’t that the Republicans are doing the right thing and the Democrats are failing at every single step, the point is only intended to remind us of the old saying about representative governance:

The people will get the government they deserve.

& so long as we allow marketing campaigns to have more force in elections than critical analysis does, we will likely continue to be disappointed.

More bad news for Obama & the Democrats for 2010 elections.  Via The Atlantic here:

Chris Cillizza’s Morning Fix reports new data from Gallup showing that independents now favor a generic Republican candidate for Congress over a generic Democrat by 12 points….

& as is continually the case with this congress, more bad news for freedom.  Via The Hill here:

The 30-second campaign ad could become a thing of the past for third-party groups if the Democrats’ campaign finance legislation becomes law.

Media strategists argue the new disclosure requirements would eat into the majority of their ad time….

& while we’re talking about lack of freedom…. what might Kagan do about this “disclose” act?  Via Reason.com here:

As solicitor general of the United States, Elena Kagan argued in front of the Supreme Court that the federal government had the constitutional authority to ban certain political pamphlets. She also strongly implied that some political books, if they were partisan enough, could also be censored…..

Does is matter that she’s against free political speech?  Unlikely…. via Yahoo News here:

…Kagan’s performance in the Judiciary Committee drew praise from Democrats and compliments even from some critics, putting her on a path to confirmation by the full Senate sometime in July.

“She will be confirmed. I believe she will be confirmed,” said Republican Orrin Hatch, a member of the Judiciary Committee, predicting there would be at least some Republican support…..

& least we forgot, there’s still an oil spill…. which is being screwed up by the same government that is promising to “fix” healthcare….  Via The Heritage Foundation here, all kinds of people are offering help, but we’re still considering it:

In total, there have been 27 countries and 5 international organizations offering boom, dispersants, skimmers, vessels, bird rehabilitation equipment as well expertise. Along with the other important action items for the administration to undertake, accepting international assistance must be a more urgent priority. The Department of State has a chart that lists the equipment and expertise sitting on the sidelines with most of the status orders “under consideration.” Owners of the equipment have been rapid in their response to government queries but the equipment remains idle. It simply needs to be better….

Not to mention the economic killing impact the asinine moratorium is having:

Meanwhile, the Gulf continues to suffer. It’s not just government incompetence when it comes to the environmental cleanup; the administration’s policy decisions are making the economic harm much worse – especially the offshore drilling moratorium. Although the ban was only meant to affect those rigs operating in water 500 feet or deeper, it has led to a de facto ban on shallow water drilling….

Butler said that only one of his four drill rigs are operating; all four were drilling before the spill. Spartan has six contracts that would put his entire fleet back to work, but he can’t get going until the permits come through, he added. The week before last, Butler said he had to lay off 72 employees. Come Tuesday he’ll have to let another 140 go. “That’s 140 families, is how I look at it,” Butler said….

Not only incompetence in the clean-up, idiocy in quickly implemented, but poorly thought out regulations (DA post here), The Atlantic takes all this and poses an interesting moral question here:

In this video from Climate Desk partner Need to Know, Atlantic correspondent and oil expert Lisa Margonelli talks to Jon Meacham about halting drilling in the Gulf. She explains her view that Americans don’t have a right to drive cars and use gasoline unless we’re willing to drill for it in our own backyard….

For good news – research conducted on parents and children in reference to video games demonstrates that most parents actually don’t need government help.  Via The Technology Liberation Front (here):

• 93% of the time parents are present at the time games are purchased or rented
• 64% of parents believe games are a positive part of their children’s lives
• 86% of the time children receive their parents’ permission before purchasing or renting a game
• 48% of parents play computer and video games with their children at least weekly
• 97% of parents report always or sometimes monitoring the games their children play
• 76% of parents believe that the parental controls available in all new video game consoles are useful

It might be scary to those in government who are continuing to try to push more laws concerning how parents raise their children as it discounts the need for those laws, but for us normal folk – it gives us what we see everyday:

Once again, these findings illustrate that parents are parenting!

It’s been a pretty busy week, with the anti-free speech stalwart Kagan nomination hearings, historic SCOTUS rulings, not so good economic news, that you might have completely missed the government’s latest attempt at taking away more of your economic freedom.  They have therefore entitled their effort, the Financial Crisis Inquiry Commission.

Well, some of you may have missed it, others like Mr. Gasparino is all over it.  What might he be writing about?  AIG testimony?  Goldman Sachs testimony?

No, he’s more concerned with one missing actor in this drama, JP Morgan.  While writing for the Huffington Post, Mr. Gasparino explains to us (here):

Of all the events that led up the great financial collapse of 2008, in my mind, one truly stands out: The decision by super-bank JP Morgan to demand billions of dollars in collateral from the troubled Lehman Brothers in mid-September of that year….

Now… if you want to talk about some laser like focus, this is truly amazing.  Mr. Gasparino doesn’t remember anything about houses going up in value for double digits for a decade?  Doesn’t remember Fannie & Freddie with strong political help encouraging this?  Doesn’t remember all those warnings about just these things?

No, he tells us, the real villain here, is JP Morgan:

…The move, according to senior Wall Street executives, was akin to a death knell for the firm, which was just about on life support already. JP Morgan demanded some $8 billion, it said, for clients that traded with Lehman….

Because….

….Once word went out that JP Morgan was nervous about Lehman’s ability to survive, a bank run ensued. Lenders pulled lines of credit; Lehman couldn’t trade with its counter-parties. In less than a week, Lehman had declared bankruptcy and the entire financial system began to implode…

To translate this tripe he seems to be stating that by merely asking a company who owes you money, but can’t pay and then goes bankrupt because they can’t pay money they owe, is the entire reason for the financial collapse.

Oh, and least we forget… the company which borrowed all that money and couldn’t pay it back and went bankrupt – it wasn’t their fault at all – it was those greedy bastards who wanted what was rightfully theirs.

Ahhh… the NY Times – telling us how great it is to die in Rwanda of a heart attack with health insurance, than to survive a heart attack in the US without (via Cato here).  The premise from the NY Times is a Rwandan official who is just besides themselves when they met an American college student who doesn’t have health insurance.  Cato wonders what they are thinking when:

…[In Rwanda] Dialysis is “generally unavailable.”  As are many treatments for cancer, strokes, and heart attacks, making those ailments “death sentences” more often than in advanced nations.  Life expectancy at birth is 58 years, compared to 78 years in the United States.  Rwandan children are 15 times more likely to die before their first birthday (7 vs. 107 deaths per 1,000 live births) and 25 times more likely to die before turning five (8 vs. 196 deaths per 1,000 live births) than U.S.-born children.  (If you want to meet some Rwandan kids struggling to make it to age 5, read my friend’s blog, Life of a Thousand Hills.)  And yet, the saddest thing is a healthy-but-uninsured American college student…..

But the NY Times isn’t alone in their idiocy (as usual).  Via Reason.com (here), they wonder how a floating grocery store can possibly be a bad thing?

Nestle has put together a floating supermarket barge, and on Friday it sailed the product-laden boatmarket (superboat? grocerybarge?) into brave new Amazonian emerging markets…

My first reaction: Neat!…

Apparently that reaction is not shared by all. At Alternet, Michele Simon, a public health lawyer and author of Appetite for Profit: How the Food Industry Undermines Our Health and How to Fight Back, calls this an “especially disgusting news item” about which “writing about it is the only way I know to release my outrage. My version of screaming from the rooftop.”…

Yes, apparently many pundits from around the world are working tirelessly to keep all the options they have out of the hands of lesser people… for their own good of course.  As reason writer Ms. Mangu-Ward summed it up:

…Nestle is sending its boat into the hinterlands precisely because those hinterlands are now full of people who might be able to swing the purchase of the occasional chocolate bar, something well outside the scope of their financial lives just a few years ago. Hardly the sort of thing that makes me want to take to the rooftops–or the Internet–to express my outrage….

Arlen Specter….you remember, the guy who was going to lose his Senate seat so changed parties from Republicans to Democrats…. only to be soundly defeated in the primary?  Well, if you care, you can see an example of the last, desperate gasp of a man losing all of his power (via Politico here).

Good news on the medical front.  Via Bloomberg, Stem Cells From Own Eyes Restore Vision to Blinded Patients, Study Shows:

Patients blinded in one or both eyes by chemical burns regained their vision after healthy stem cells were extracted from their eyes and reimplanted, according to a report by Italian researchers at a scientific meeting….

For those that have been asleep for the past few days, quick recap:  an old, slightly senile reporter, who should not have had a job for about 20 years went on a radio show and said some really stupid and factually incorrect stuff (here):

[White House Correspondent Helen] Thomas caused an uproar with her recent remarks that Jews should “get the hell out of Palestine” and “go home” to Poland, Germany, America and “everywhere else.”…

Within a few short days, the controversy pulled faux outrage from every corner of society, including the White House itself.  Ms. Thomas went from being incorrectly seen as a sweet old lady, to now being seen as she really is.  She was in the process of losing her press credentials, was suspended from her job, and then decided to do what she should’ve done decades ago…. retire:

Helen Thomas , a veteran columnist for Hearst Newspapers, announced her resignation today shortly after the White House condemned her remarks about Jews as “offensive” and “reprehensible.”…

So basically what we have here – is a bunch of people who are upset over a crazy woman saying crazy things.  The reason they have to be feign anger is because they’ve been defending her childish behavior for years and telling us what a great person she was for standing up to power.

Now some may ask – isn’t some of the anger deserved?  & the answer to that is yes.  Telling any race of people to go back “home” to the countries which tried to wipe them out in a world wide Holocaust deserves societal scorn. But the truth is, we don’t typically heap societal scorn on 89 year olds.

We’ve rightfully come to understand that they not only grew up in very different times, but some are a little off.  Please note, this isn’t to say all 89 year olds will wax philosophically about hating the Jews, just that when your family elders who are 89 spout something idiotic or racist at the Thanksgiving dinner table, they are simply ignored.

I might have to talk to my daughter about what was said and how stupid and racist it was, but we generally don’t attack old people with a penchant for senility.   We ignore, deflect, and move forward all while secretly wishing it hadn’t ever happened.

So…. I’m not angry at Helen Thomas.  I firmly believe what she said was racist, idiotic, and juvenile, but she’s nothing more than a senile reporter.  It’s odd I know, but I don’t get upset when crazy people say crazy things.

Something else to note – this love affair the White House and major media had with Helen Thomas, is what got her into this problem in the first place.  There is absolutely no reason anyone should care what Ms. Thomas has to say beyond her reporting the facts she obtains from the White House press briefings.

I say this, because she is a reporter… well, she is a crazy woman with journalistic credentials, but nonetheless – her job for her entire life has been to tell the public news she’s heard from government officials.  She has never ran anything, never worked in a government capacity on anything she reports on, never even proposed she was/is an international policy expert… and she seemingly didn’t want that.  She wanted to be a journalist, not any of these other things.

However, since she “stood up to power” (IE: asked juvenile questions to those in power) and stood up to the right people (mainly Bush), she has been promoted from journalist to all seeing without so much as fake reason for why we should care what she has to say about anything outside of her official duties.

I know, it’s odd of me again, but I like my international policy information to come from people with knowledge of internal policy & while all these people might be smarter than I am… my mechanic, my doctor, my lawyer, and yes, even Helen Thomas… they simply don’t fit that bill.

What’s more frustrating that the faux outrage though is some attempts to wrangle this whole mess into some sort of free speech thing from the most unlikely of places (here via Reason):

…True, I find some comfort in knowing that this unprofessional crackpot never will haunt a president, common sense, or the public again. But I wince at the rapidity of her demise. And I feel a nagging anxiety about a journalist’s losing her job over nothing more than a controversial statement….

To be fair, the author goes on to admit this is a private decision being made by a private company which is not bound by the first amendment, but he writes as if firing a senile staff member after they’ve been shown to be a bigger liability than all their assets combined is about free speech.  To be correct however, it’s not.

To gauge the effectiveness of this argument, we can run it to its logical conclusion.  Not always, but this is a sometimes helpful trick to see whether an argument is valid or just whining. So let’s ask this question – IF we agreed completely that Helen Thomas should not be fired, what does this mean?

Doesn’t that also mean we are saying that if the publication she works for is losing money due to her exercising her first amendment rights, they still have no recourse?  They should just keep losing money?  & If it doesn’t mean any of this, then what’s the point of bringing it up?

While reading, I’m unsure where David Harsanyi is going with this other that to try to equate a private business releasing an employee with hate speech paranoia.  Though I’m pretty sure he doesn’t want to imply that Ms. Thomas can’t be fired, his argument is leading in that direction.

No, he likely doesn’t believe that she can’t be fired.  The more likely cause of his machinations is that of simple self preservation.

Because no matter how much Mr. Harsanyi wants to make this about free speech or hate speech idiocy and no matter how many other public figures want to make this about racism, the truth is there for all to see. An old lady, who likely should’ve retired long ago, said some crazy things that forced her retirement.

The 9th Circuit strikes again…. via LA Times (here):

SAN FRANCISCO — A sharply divided federal appeals court in California on Monday exposed Wal-Mart Stores Inc. to billions of dollars in legal damages when it ruled a massive class action lawsuit alleging gender discrimination over pay for female workers can go to trial….

Now I don’t claim to be a lawyer and haven’t even played one on tv, but part of the dissent seems obvious to me:

…Judge Sandra Ikuta wrote a blistering dissent, joined by four of her colleagues.

“No court has ever certified a class like this one, until now. And with good reason,” Ikuta wrote. “In this case, six women who have worked in thirteen of Wal-Mart’s 3,400 stores seek to represent every woman who has worked in those stores over the course of the last decade — a class estimated in 2001 to include more than 1.5 million women.”…

Maybe they like being overturned (here from 2007)?

…The 9th Circuit also has a long-running streak as the most overturned, which went unbroken this year. The Supreme Court reviewed 22 cases from the 9th Circuit last term, and it reversed or vacated 19 times….

Via WSJ, The Big Brown Union Bailout

If you can’t beat ‘em, have Congress hobble ‘em. That’s the motto of some in corporate America, and Exhibit A might be United Parcel Service’s campaign to get Washington to impose its labor woes on rival Federal Express. This would be one more union bailout at the expense of business competition and economic efficiency….

This is a continuation of this administration’s policies to pay off unions at the expense of others (DA posts here).

Via Reason.com, GM’s Phony Bailout Payback

Uncle Sam gave GM $49.5 billion last summer in aid to finance its bankruptcy….  So when Whitacre publishes a column with the headline, “The GM Bailout: Paid Back in Full,” most ordinary mortals unfamiliar with bailout minutia would assume that he is alluding to the entire $49.5 billion. That, however, is far from the case….

I say if you want to buy American, buy Ford – no bailout money and still going strong.

& cool science news via e!Science (here):

…In a study published as an Advance Online Publication in the journal Nature Nanotechnology on Sunday, physicists at Ohio University and the University of Hamburg in Germany present the first images of spin in action….

Over @ HBR Blogs, Jeff Goldsmith asks the following question: Has the U.S. Health Technology Sector Run Out of Gas?.  Looking historically, he notes the amazing progress since the 1970s, but a decline in that growth since 2000:

…Technological innovation — in pharmaceuticals, biotechnology, medical devices including imaging, and enterprise IT — exploded in the thirty year period 1970 to 2000…

…Then about a decade ago, the US medical technology sector entered a prolonged innovation drought. In pharmaceuticals, new drug introductions declined by almost two thirds, while drugs patented in the latter part of the boom period lost protection, this despite a near tripling in R+D outlays. (New drug introductions rebounded modestly in 2008 and 2009, but still haven’t regained their 2004 levels)….

He goes further to note that this dip in activity wasn’t just about new drugs:

…The drought wasn’t confined to pharmaceuticals and biotechnology. Imaging, a dazzling success story for three decades, has seemingly run out of gas. Imaging equipment sales collapsed precipitously in the US, by roughly 40%…

…Enterprise clinical information technology seems to have hit a similar flat spot. The major commercial IT platforms for hospitals and health systems are more than a decade old.

& all of that makes complete sense based upon what we know about the last couple of decades.

Since the mid-1990s (well really, since the 1960′s), we have increased regulation on the medical industry on a constant basis.  From minor changes in who qualifies, to new regulations such as HIPA, to very large new regulatory pressures such as the Medicare Prescription Drug Benefit, resulting in an explosive growth in government expenditures of health care:

There have also been additional pressures.  Increases in financial and IT regulations through SOX and other legislation have increased companies’ weariness to put themselves at risk and increased costs of doing business.

These pressures in increasing the costs of doing business, combined with the federal government expenditures crowding out private spending, has resulted in higher costs for businesses and therefore consumers as well.  The new heath care and financial overhaul bills will continue this pressure.

The big cost however is what the author notes:  the lack on innovation.  When the government seeks to consistently erect new and more costly barriers to entry, competition will naturally decline.  The correlation to that behavior is that costs will grow more rapidly as we know competition in the long-term generates downward pressure on prices.

As we see now – prices are increasing, availability is decreasing, as the government decreases the availability of future competition in industries the government tightly controls such as health care.  Conversely with those industries with fewer barriers to entry have downward pressure on prices, such as cell phone or internet providers.

While I consider this failure of centralized control as a major factor, Mr. Goldsmith posits three contributing factors, risk aversion from management, size and increasing bureaucracy, and the fact that we are losing out globally for scientific talent:

1. Firms that used to be run by scientists and engineers are now run by attorneys and marketing executives….
2. Their ability to foster innovation has succumbed to a bureaucratic management culture….
3. Bright young foreign science and technology graduates are returning to India or China instead of staying here and creating new products or companies….

While I agree with all of these things, I think reasons 1 & 3 can be combined easily to a more basic point about government interference and centralized control.  Indeed they are symptoms of the problem and not necessarily the disease.

Having said that, I think it’s also important to note that reason number 2 exists due to the same thinking reasons 1 & 3 do – the belief that centralized control is a nominal good (DA post on business trends here).

The author seems remiss in not making the connection, even if he did eloquently, maybe unwittingly, stumble across it when writing about global competition:

…If they have more freedom to innovate in their home countries, that’s where they’ll go….

For as long as we continue to discuss symptoms and not the actual disease, we will continue to miss the point.

Obamacare - was the final push an act of noble means or just hubris? (via Reason.com here)

…At a time when America’s economy is still in bad shape and when we face numerous problems abroad, Obama has put the country through a shattering political battle—and, with legal challenges and promises of repeal, the fight may be just beginning.

This seems, at the moment, less a monument to idealism than to hubris.

Rep. Mike Honda, D-CA seems to think Fannie Mae knows their stuff (via Politico here).  In asking for more money to prevent legal foreclosures, he gives us this:

…In addition, Fannie Mae estimates that as many as 50 percent of the minority homeowners who received a subprime loan should have qualified for a prime loan. This clearly indicates the need for housing counseling services….

With all due respect to Mr. Honda, I think all this clearly indicates is poor critical thinking skills.  When a GSE which apparently knew nothing about the impending crisis and was proactively laying down on the job when it came to auditing loan standards gives you estimates on who might or might not have qualified for what kind of loan – laughter is the appropriate response.  Not regurgitation.

Cato on telephony deregulation, cell phone innovation, & ingratitude (here).  Discussing his memories as a child where phone line were costly and long distance was only slightly less expensive than actual driving as compared to today’s age:

Then came the breakup of the AT&T monopoly in 1984. Phone technology and competitive service provision exploded. In 1982, Motorola produced the first portable mobile phone. It weighed about 2 pounds and cost $3995.

Within a very few years they were much smaller, much cheaper, and selling like hotcakes.  Today there are some 4.6 billion mobile phones in the world, and counting, or about 67 per every 100 people in the world.

Then he moves forward to the ingratitude:

And to celebrate this incredible achievement, Slate and the New America Foundation are holding a forum titled “Can You Hear Me Now? Why Your Cell Phone is So Terrible.”

From the CEI (Competitive Enterprise Institute), we learn the EPA is about to expand its powers (here):

Washington, D.C., March 30, 2010 – The Environmental Protection Agency and the National Highway Traffic Safety Administration (NHTSA) are expected this week to finalize their joint greenhouse gas (GHG)/fuel economy standards rule. This will make carbon dioxide an “air pollutant subject to regulation” under the Clean Air Act for the first time. The rulemaking, and the endangerment finding that is its prerequisite, will allow EPA to immediately exercise and continue to amass powers never delegated to the agency by Congress….

I suppose those supporting the decision know nothing about the EPA’s massive failure in just the Energy Star program.

Lastly, as a reminder, most places and people in the US did NOT buy homes they couldn’t afford (via WSJ here):

The U.S. still is feeling the effects of widespread housing bust, but a new report serves as a reminder that large swaths of the nation didn’t experience a boom in home prices and hasn’t suffered from the bust….

In fact, most of the insane double digit growth in real estate prices were in 5 main areas – NY corridor, Florida, Arizona, California, Nevada.  Make of it what you will that almost all flyover states never experienced the irrational boom, to be inevitably followed by the burst.