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Starting To Pay Price For Our Protectionism

As Obama makes political hay off protectionism and promises a new Smoot-Hawley era, it's no surprise our trading partners are beginning to look to other markets — such as Europe. It's a warning.

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Our No. 1 trading partner, Canada, isn't stupid. When Obama threatened last February to rewrite the North American Free Trade Agreement on his own terms, our northern ally started looking abroad to other markets.

They found a big one in Europe, which seems to have few hang-ups about increasing exports and signing free-trade treaties. Last Friday, Canada and the European Union held the first talks toward an eventual free trade agreement between the two.

U.S. allies are wise to seek other partners no matter what the U.S. climate — the U.S. downturn no doubt plays a role too. But it started with noises out of the U.S. about pulling up the drawbridge.

With a global downturn, free trade makes more sense than ever. That ought to be an election issue for the U.S., which needs to stay globally competitive. Sadly, it's not.

Agree or disagree, there's no doubt that protectionism will make America poorer and less influential, protecting nothing. Outsourcing is particularly full of misperceptions.

"Look at the auto industry — Japan started by exporting to Canada and the U.S., and now produces cars in the U.S. They did it because the market itself is in the U.S. We see exactly the same thing in Europe. More car plants are going up in Germany and France than Bulgaria and Romania, even though the labor costs are lower there."

With the possibility of a protectionist Democratic president (Barack Obama) working with a protectionist Democratic Congress, the U.S. may be the odd man out when it comes to free trade.

Pity. Because free trade, as any economist will tell you, inevitably boosts the economies of those who engage in it. So others, like Canada, Colombia and Europe, will continue down the free-trade path — toward greater wealth for their citizens — while the U.S. sits on the sidelines.

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Tragedy Averted

Seven months. That's all it took before Hawaii concluded that the only state universal child medical coverage program in the country is unsustainable. Give officials credit for heading off a disaster.

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On March 1, the Hawaii Medical Service Association began enrolling children in the state Keiki (child) Care program. The grand plan was to provide medicine for every child between birth and 18 years old who didn't otherwise have coverage.

But then parents who could afford coverage began dropping their private plans and placing their children in the program. Gov. Linda Lingle's office, seeing a sure disaster ahead, pulled the plug on the patient last week, citing "budget shortfalls." There simply isn't enough money in the state treasury to fund it.

As socialist health care programs go, Keiki Care was small scale. Officials designed it to accommodate about 3,500 children. It never got that big. By the time just 2,000 children had enrolled, it had become obvious that it was not going to work.

Yet allegedly credible politicians and empty-headed dreamers want to forcibly socialize health care for the entire U.S. and provide coverage for 300 million Americans.

They tell us repeatedly that such a system will actually lower medical costs. Of course it will — but only if health care is rationed, less high-tech care and advanced drugs are used, and people lose the right to choose their own doctor.

Every government that has experimented with such universal health care plans has experienced similar ailments. Britain? Long wait times and shabby care. Canada? The same. Sweden? Its problems are, not so remarkably, similar to those in Britain and Canada.

Severe problems begin when large numbers in universal-care nations begin to help themselves to the "free" health care provided by the government. Since they believe someone else is paying, they run to the doctor for conditions they would not otherwise spend their own money on. That leads to system overuse, the symptoms of which are long wait times, overworked doctors, substandard care and soaring costs that must be borne by taxpayers.

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A Tax Cut Politicians Will Love; Never Mind About Productivity

Barack Obama is promising a tax cut that most politicians will love.

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Much of the income-tax cut Obama is promising to give to 95% of Americans is not a tax cut at all, but a federal transfer in the form of a check from the U.S. Treasury to families not paying any federal income tax.

If the American public takes this fiscal sleight-of-hand seriously, the more politicians tax those paying income taxes to fund transfers to those who are not, the more credit they will receive for cutting taxes.

And any attempt to restore fiscal sanity by resisting higher taxes on those who pay income taxes and reducing transfers to those who do not, will be ridiculed as a tax increase on the poor.

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Change Means Never Having To Face Facts

Telling a friend that the love of his life is a phony and dangerous is not likely to get him to change his mind. But it may cost you a friend.

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It is much the same story with true believers in Barack Obama. They have made up their minds and not only don't want to be confused by the facts, but also resent being told the facts.

Some of Sen. Obama's most fervent supporters could not tell you what he has actually done on such issues as crime, education or financial institutions like Fannie Mae and Freddie Mac, much less what he plans to do to stop Iran from becoming a nuclear nation supplying nuclear weapons to the international terrorist networks that it has supplied with other weapons.

The magic word "change" makes specifics unnecessary. If things are going bad, some think that what is needed is blank-check "change." But history shows any number of countries in crises worse than ours, where "change" turned problems into catastrophes.

We know that Obama opposed attempts to put stricter regulations on Fannie Mae — and that he was the second largest recipient of campaign contributions from Fannie Mae. We know that this very year his campaign sought the advice of disgraced former Fannie Mae CEO Franklin Raines.

Fannie Mae and Raines were at the heart of "the mess in Washington" that Barack Obama claims he is going to clean up under the banner of "change."

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Petty Officer

No one's vote should be swayed by Gen. Colin Powell's long-expected Obama endorsement. Like other self-serving, 11th-hour Obama supporters, his reasons couldn't be shallower.

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How can someone who served Ronald Reagan as he fought the Cold War, George H. W. Bush as he fought the Gulf War and George W. Bush as he fought the global war on terror support a man from leftist circles in Southside Chicago who has bragged, "I will slow our development of future combat systems" and who promises "direct presidential diplomacy with Iran without preconditions"?

Among Powell's rationales is his "difficulty with two more conservative appointments to the Supreme Court." Would he rather have another ACLU activist like Ruth Bader Ginsburg on the high court instead of a John Roberts or Samuel Alito?

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Calculate Just How Much You'll Miss the Bush Tax Cuts

It's not a perfect calculator, but here you can put in your taxable income for 2008 and calculate your tax bill, and then do the same for the tax rates of 2000, before the Bush tax cuts went into effect.

For example, let's say you're part of a married couple, filing jointly, with $60,000 in taxable income. In 2008, you would pay $8,198. If you have the same amount of taxable income after the Bush tax cuts are repealed, and tax rates return to 2000 levels, you'll pay $11,100.

You get to be more patriotic in Joe Biden's mind to the tune of $2,902, out of your pocket and into the government's coffers. Gotta spread that wealth around, you know.

But don't worry. Barack Obama says he won't raise taxes on people making less than $250,000, and provide a tax cut for 95 percent of Americans. He promised.

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And Fair Is Not The “Fairness Doctrine.”

Those who cannot compete in the marketplace of ideas have only themselves to blame. What’s Fair Is Fair

The Federal Communications Commission under President Reagan wisely eliminated the Fairness Doctrine in the 1980s after determining the rule actually discouraged broadcasters from covering controversial issues. Demonstrating the bipartisan opposition to the Fairness Doctrine existed then as now, President Reagan had an unusual ally in his effort in Governor Mario Cuomo who also opposed the Doctrine pointing out: “Of course there are limits to liberty and lines to be drawn … But curtailing First Amendment rights should be allowed only when the need is so clear and convincing as to overwhelm with reasonableness the arguments in opposition. And the case for government intrusion, for the Fairness Doctrine, is certainly less than compelling at its very best.”

The Fairness Doctrine originally was designed at a time when there were only a few media outlets. But as the Los Angeles Times editorial page highlighted last year in an excellent case against reviving the rule: “No matter what your point of view might be, you have free or inexpensive outlets available today to express it — maybe not a radio or TV station but certainly a website, a video blog, a podcast or an e-mail newsletter. At the same time, the public has unprecedented access to a diverse array of opinions. Just as the government shouldn't decide what you say on the channels you create, nor should it be able to dictate the range of opinions people hear over the air.”

Instead we would suggest this well-worn maxim: “The remedy for speech you don’t like is not less speech, it is more speech.” “More speech” is something that today’s 24/7 media environment provides abundantly for all sides.

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The Coming Rout Of Republicans Will Have Major Consequences

Worry about a filibuster-proof Democratic majority. Obama, Unchecked

The cold, hard fact remains that Democrats are in position to win perhaps 30 House seats from Republicans, perhaps more. Members once believed to be safe now find themselves struggling to survive. According to sources in Florida, Rep. Tom Feeney (R., Fla.) may be the latest to enter this category.

In the Senate, Republicans finally gave up this week on their only serious pickup opportunity — the chance to defeat Sen. Mary Landrieu (D., La.). The pressure to spend money on defense had simply become too great. GOP Senate seats in New Mexico and Virginia were written off months ago. Seats in Alaska, New Hampshire, Minnesota, North Carolina, Colorado, and Oregon are all looking shaky. Republicans in Kentucky and Mississippi face uncomfortably close races. A filibuster-proof Democratic majority has become a real possibility.

In the absence of a Senate firewall or a significant coalition of opposition to his policies in the House, a President Barack Obama could make many permanent and sweeping changes to America’s economic policies. It is worth examining this conservative nightmare — the possible consequences of an unchecked Obama presidency.

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Questioning Powell’s Judgment And Global Perception

Is it possible that once again, there are highly germane factors that Powell has missed? General Blind Spots

Colin Powell is the current darling of the media, for crossing party lines on Meet the Press to endorse Barack Obama for “ability to inspire …steadiness...intellectual curiosity...depth of knowledge...intellectual vigor...a definitive way of doing business...reaching out all across America…exceptional,” and numerous other virtues, too many to list here. In sum, Powell embraced Obama as a “transformational figure.”

But transformation to what?

No, there was a more troubling dimension to Powell’s Iraq argument in that vital year, 2003. It entailed an enormous omission of highly relevant information, which Powell had at his command, but apparently either missed, or chose to ignore. There has been a considerable lack of intellectual curiosity about it since, not least on the part of Powell himself.

Powell had more than enough documentation at his command to challenge — credibly — the motives of Security Council members Russia and France, for blocking U.S. efforts to try to enforce 17 Security Council resolutions against Saddam.

Yet Powell, when it came to that showdown on the world stage of the U.N., apparently either missed or dismissed as irrelevant the abundant signs — to which he had privileged access — that the U.N. Security Council itself had been corrupted by the same Iraqi regime whose fate they were debating. Powell raised no public alarm; he made no visible mention of this pivotal problem. If anyone was going to raise hell about this matter at the time, call it to the attention of President Bush, and pursue it as the highly germane matter that is surely was, it should have been Powell, secretary of State. Did he not notice? Did he not care? Was his own vision so narrow that he simply did not understand?

Now Powell is giving his full-throated endorsement to the candidate who promises to bargain with Iran’s mullahs, remake America’s economy in the socialist mold, and change the world — but how? Is it possible that once again, there are highly germane factors that Powell has missed?

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Unbelievable

Commentators are saying that Powell’s endorsement of Obama will quiet voters’ doubts about the candidate. But Powell’s words, like those of his chosen candidate, cannot survive careful scrutiny. The Case of Colin Powell

Powell began his case on Meet the Press by noting that since the financial crisis hit the front pages Sen. John McCain has been “a little unsure as to deal with the economic problems that we were having and almost every day there was a different approach to the problem.” The second part of the sentence is a bit hyperbolic, but who could deny the first part? But then, who could deny that Senator Obama has had little to contribute, either? He never took a position on the AIG bailout, for example, and showed no leadership, pro or con, on the Treasury Department’s financial-rescue plan. His distinctive contribution to the discussion of the issue has been a vapid and sometimes demagogic attack on deregulation. His economic agenda beyond the financial crisis includes tax increases and feints toward protectionism, neither of which will strengthen the economy.

The general then moved to McCain’s running mate Sarah Palin, whom Powell pronounced unready to be president. That is a reasonable point of view. But is it really a very strong reason to prefer Obama to McCain? There are, after all, readiness questions about Obama as well, questions that Powell answers merely by invoking Obama’s “intellectual vigor”: an element of readiness rather than the thing itself. The more you value experience and demonstrated leadership, the less attractive Obama should be.

Powell suggested that he would not welcome two more conservative appointments to the Supreme Court, but left the point hanging. It is not clear why he would view that prospect with dismay. Does he object to Justice Alito and Chief Justice Roberts for allowing democratic supermajorities prohibit partial-birth abortion? If so, he is of course entitled to his views, but there is no reason for most voters to concur in them.

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Carry It With You At All Times

How to read the Constitution
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Heh. Indeed

McCain aide Mark Salter: Sullivan “seems to have lost his f***ing mind”

“To see what is in front of one’s nose needs a constant struggle,” runs Sully’s tagline, quoting Orwell. Consider Salter’s struggle won. Doubtless this righteous salvo, too, will be assimilated into the unified field theory of Trig Trutherism, probably as evidence that Sully got too close to the truth in his scary smart insinuation about Palin buying off the hospital staff where Trig was delivered.

I’m not going to quote the money passage lest it discourage you from reading the whole worthwhile interview. I’ll quote this instead:

JG: Looking back, do you think there was something false about your salad days with the press?

MS: No, I’m trying not to draw general lessons about the press or us or the meaning of life out of all of this. Otherwise I’d despair. I think the media is driven by a need to see this history happen. And I think they’ve rationalized it, they think they’re on the level with McCain, that he’s not the old McCain. But he is the old McCain. He just doesn’t know what happened to the old press corps. They rationalize a reason to go get him. Every Obama attack they carry. Every McCain criticism of Obama they rush to blunt even before Obama does.

Tom Bevan reminds us Salter’s not the first campaign aide to detect this dynamic.


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Democrats Set To Muzzle The Right

Would Obama restore the Fairness Doctrine?

Would a President Obama veto a new Fairness Doctrine if Congress enacted one? It's doubtful.

The Fairness Doctrine was an astonishingly bad idea. It's a too-tempting power for government to abuse. When the doctrine was in effect, both Democratic and Republican administrations regularly used it to harass critics on radio and TV.

Second, a new Fairness Doctrine would drive political talk radio off the dial. If a station ran a big-audience conservative program like, say, Laura Ingraham's, it would also have to run a left-leaning alternative. But liberals don't do well on talk radio, as the failure of Air America and indeed all other liberal efforts in the medium to date show. Stations would likely trim back conservative shows so as to avoid airing unsuccessful liberal ones.

Then there's all the lawyers you'd have to hire to respond to the regulators measuring how much time you devoted to this topic or that. Too much risk and hassle, many radio executives would conclude. Why not switch formats to something less charged - like entertainment or sports coverage?


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You Should Be

527 ad: “Concerned about Obama?”

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A Dash Of Cold Water On Democratic Spin

WaPo: Government distortion created the financial collapse

The editorial board of the Washington Post corrects the record today at the expense of Democrats in Congress desperately spinning the financial crisis as a failure of deregulation.  Practically alone among the national media, the Post firmly affixes blame to the social engineering of Congress that allowed Fannie Mae and Freddie Mac to create a Ponzi scheme with subprime loans for political gain

It should be the end of social engineering by Congress by distorting private lending markets.  That won’t happen until people hold the architects of this failure to account.  That starts with honest and high-profile reporting of the causes of the collapse, and the Post takes an important step with its lead editorial today.

Next, perhaps the Post can report on the distortions Democratic politicians are making in hiding this truth from the voters.  Perhaps they can publicly scold Barack Obama for blaming the collapse of Fannie Mae and Freddie Mac on “deregulation” and the policies of an administration that tried on numerous occasions to get Congress to act responsibly in regulating business practices at the GSEs.  Maybe other newspapers can finally mention how Barney Frank and Chris Dodd kept insisting that all was well at Fannie and Freddie, the latter while taking sweetheart loans from a Fannie Mae-linked lender and taking over $160,000 in Fannie/Freddie contributions — while chairing the committee that oversaw the industry.

At least this is a start.



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