The Heritage Foundation - Leadership for America

Welcome to a new feature of the Foundry, Outside the Beltway, where we will semi-regularly post state and local stories of either conservatism at its best, or liberalism at its worst. Today, we start off with liberalism at its worst.

Providence, Rhode Island Mayor David Cicilline wants to tax college students $150 every semester to have the privilege of studying in his city. Because the mismanaged city is running a $17 million deficit, they need to find new money, rather than new savings. And the best new money is to shakedown ramen-noodle-eating students whose presence in Providence actually creates a local economy.

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It would all make for a great half-hour sitcom. First, they released classified memos on interrogation practices used to grill terrorists. Then, the White House promised the ACLU that they were going to release photos showing detainees being interrogated. Then, White House officials said they were not going to release photos of the Air Force One photo-op that sent New Yorkers screaming into the streets—because they were “classified.” Then they announced they were going to release to release the “classified” Big Apple Air Force One shots. Then they threatened to retaliate against the British for releasing information about enemy detention, after the administration released CIA memos about interrogation. Then they got mad at the CIA for releasing information about Congressional briefings on interrogation.

Now they are not going to release CIA photos.

Oh, we forgot, they apparently have no knowledge of the request to release the CIA memos Vice President Cheney asked for.

It would all make for a great half-hour sitcom if it had nothing to do with national security. It is far from clear what is driving White House policies on these issues—but this much is clear. Campaigning and governing are two different things. In a campaign, “messaging” comes first, in governing doing the right thing comes first. Once you figure out the difference these kinds of decisions are easy—when you can’t see the difference these choices are hard and the results, often disappointing.

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For months now, the Treasury Department has been grappling with the consequences of “Too Big to Fail” — the idea that some enterprises are too large to allow to fail. Now here’s comes the Justice Department with “Too Big To Succeed,” the idea that some firms are too large to allow to suceed.

That at least is the implication of a policy change announced this week by new DOJ Antitrust Division chief Christine Varney. Specifically, in two speeches, she renounced a report developed by the Bush DOJ last year on monopolization law. That law, enacted as section two of the 1890 Sherman Act, is famously broad, making it illegal to “monopolize.” But finding the fine line between forbidden monopolization and pro-competitive success is a difficult if not impossible task.

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Heritage’s Conservative Bloggers’ Briefing was honored to have North Carolina Representative Patrick McHenry (R) speak to some thirty or so young conservative bloggers, journalists and activists.  Rep. McHenry represents North Carolina’s 10th Congressional District and is Ranking Member on the Census Subcommittee.  During his discussion with those in attendance, the Congressman focused on some recent behind-the-scenes political maneuvering regarding the upcoming U.S. Census count.

Rep. McHenry mentioned past attempts by liberals in Congress to abandon the Census Bureau’s time honored standard of a “hard count” for a statistical sampling.  The overwhelming problem of statistical sampling the Congressman said, was the Census Bureau itself is certain the sampling data will be incorrect and be an under-count of the U.S. population.  Politically it’s even worse, as the Census information is the basis for the number of seats states receive in the House of Representatives and is also used for redistricting purposes. Continue reading…

No. Heritage fellow David John explains:

Is the Important Year to Consider 2037, 2016, or 2009?

The year when Social Security begins to spend more than it takes in, 2016, is by far the most important year. From that point on, Social Security will require large and growing amounts of general revenue money in order to pay all of its promised benefits. Even though this money will technically come from cashing in the special issue bonds in the trust fund, the money to repay those bonds will come from other tax collections or borrowing. The billions that go to Social Security each year will make it harder to find money for other government programs or require large and growing tax increases.

A second important year is 2009–this year. Starting now, Continue reading…

Nothing. Zip. Zero. Zilch. There are no benefits for the American people in the Waxman-Markey energy tax bill. Whenever defenders of the free market point out how much an energy tax will cost the economy, the enviro-left always tries to change the subject to “the cost of inaction.” But here is the dirty little secret about Waxman-Markey: it does nothing to prevent global warming/climate change whatever you want to call it. And that is before House Democrats gutted the bill.

Climatologist Chip Knappenberger crunched the numbers and found:

A full implementation and adherence to the long-run emissions restrictions provisions described by the Waxman-Markey Climate Bill would result only in setting back the projected rise in global temperatures by a few years—a scientifically meaningless prospect.

And what about the gutted version that Waxman is now trying to force through committee? Even less. Knappenberger again: Continue reading…

DIRKSEN SENATE OFFICE BUILDING - Principal Investigator for the Institute of Education Sciences Study at the University of Arkansas Patrick Wolf is the last witness to testify. He is the academic researcher who led the federally mandated evaluation. He says that this is the largest randomized experiment of a school voucher program.

He says that the study found that the program had statistically significant positive impact on the use of a scholarship. He says that examining the results over time suggest that the academic gains grow overtime in reading. The more a child is in the program the greater their gains in reading grow. This trend does not appear in math.

Dr Wolf places this program in context, saying that the majority of other federal programs evaluated by rigorous research have not delivered statistically significant gains for disadvantaged children. Continue reading…

According to the latest reports from Capitol Hill, House Democrats are busy gutting the Waxman-Markey energy tax bill in an effort to keep its economic costs low. They have a lot of work to do. The Heritage Foundation’s Center for Data Analysis has just completed their study of the March 20th version of the Waxman-Markey legislation and the results are not pretty. Waxman-Markey would:

• Reduce aggregate gross domestic product (GDP) by $7.4 trillion
• Destroy 844,000 jobs on average, with peak years seeing unemployment rise by over 1,900,000 jobs
• Raise electricity rates 90 percent after adjusting for inflation
• Raise inflation-adjusted gasoline prices by 74 percent
• Raise residential natural gas prices by 55 percent
• Raise an average family’s annual energy bill by $1,500
• Increase inflation-adjusted federal debt by 29 percent, or $33,400 additional federal debt per person, again after adjusting for inflation.

You can read the full report here.

DIRKSEN SENATE OFFICE BUILDING - Former-Mayor Tony Williams is the first speaker on panel two.

He takes on the common charge that the voucher program was forced on the district by the congress. He says that’s not true, listing the broad support the program had among district leaders at the time.

He also points out that there was very strong support among patents. He is pleased to see that after 5 years, the program is working. He says that the mandated evaluation proves the program is a effective in improving education.

He says that he is also pleased to see that the GAO found that the program was being managed relatively effectively.

He says that school choice is thriving in Washington DC. He urges the program to be continued. He can’t understand why anyone would want to eliminate a program that is working and improving the lives of thousands of children.

British Shadow Foreign Secretary William Hague recently announced that a future Conservative Government is likely to hold a referendum on the Lisbon Treaty, even if it has been ratified by the time of the next General Election. A new Populus poll published in the Times today has revealed that 82% of the British electorate supports a retrospective referendum.

At the last general election, all three major political parties were committed to holding a referendum on the European Constitution. After the Constitution’s rejection in referenda in France and Holland, EU leaders simply changed its name to the Lisbon Treaty and kept all but two of Constitution’s provisions. Despite the gross duplicity on the part of the European Union, only the Conservative Party thereafter maintained their manifesto commitment to holding a referendum on the Treaty. Continue reading…

DIRKSEN SENATE OFFICE BUILDING - Sen. George Voinivich (R-OH) is giving his statement. He talks about the history. He explains how he signed into law the Cleveland school voucher program as governor.

He explains how he had to fight the special interest groups like the NEA. He says that the only opposition to this is politics. Raising his voice, condemning the NEA saying, “They don’t even have the courage to come here today to look Tiffany and Ronald in the eye and tell them why.”

The packed room applauds loudly.

Voinivich: “The only reason this is a problem is because of a couple of special interest groups: the National Education Association and American Federation of Teachers.”

DIRKSEN SENATE OFFICE BUILDING - Tiffany Dunston says the opportunity scholarship has allowed her to go to college. Sen Lieberman pointed out that she was a valedictorian at arch Bishop Carroll high school. She explains that her nephew, who was on track to go to college, was killed too. She credits the scholarship for giving her a chance to go to college

Moving to questions. Sen Lieberman asks Ms Bennett about why she values the program.

Ms Bennett says that she found the assigned public school to be unacceptable: disorderly and unsafe. She says that safety is a top priority.

Sen Lieberman says that safety should be a top priority.

ED NOTE: Heritage scholars Shanea Watkins and Dan Lips have a relevant new paper out today, titled D.C. Opportunity Scholarship Program: Improving Student Safety

A sign of the apocalypse or Washington business as usual?

DIRKSEN SENATE OFFICE BUILDING - Latasha Bennett is the first witness to testify. She explains that she has two children. One is a scholarship student in elementary school. Her younger child is entering kindergarten and can’t get a scholarship. She explains that she is disabled and unable to work and she expresses concern about not being able to afford private schools. She states that she already lost a child to dc public schools. Her nephew (at student at Ballou high school) was gunned down and killed in 2004. She wonders if he might still be here if he had received a scholarship.

She describes having her younger daughters scholarship withdrawn by the department of education: she says she was devastated. She asks Secretary Duncan: How is it acceptable for my child to attend a school that isn’t good enough for yours?

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“I don’t want to run auto companies.” - President Barack Obama, April 29, 2009.

“Obama Halves Chrysler’s Planned Marketing Budget” - Advertising Age, May 11, 2009.

Congress should help President Obama stop running auto companies. We must repeal TARP now.

DIRKSEN SENATE OFFICE BUILDING - Sen. Joe Lieberman (D-CT) opening statement paraphrased: We tried to make this a balanced hearing, and we invited six represenatitves if the opposition, but no one agreed to testify against it. He noted that they would hear from the evaluator who conducted the department of educations impact study.

He is explaining the purpose of the program and the history. Senator Lieberman notes that the federal evaluation found that the program produced statistically significant improvement in reading and parental satisfaction.

Lieberman talks about the Obama administrations compromise: If the program doesn’t work, it should be shut down. If it works, it should continue and more kids should participate. Supporting what works should be our nonpartisan standard for funding education programs. And by this standard, this program should continue. Continue reading…

Fierce negotiations began in Brussels today over European fishing quotas - who can fish what and how much - an annual spectacle which takes place under the auspices the massively failed, and hugely expensive Common Fisheries Policy (CFP). Over the past quarter of a century, the CFP has laid bare any illusion that the EU is capable of effectively managing European fisheries. The CFP has become a harbinger of national interests, which has resulted in environmental, ecological and economic disaster.

In many parts of Europe, fish is now a luxury food item, despite tons of dead fish being thrown back into Europe’s waters every year under CFP rules. Continue reading…

Reuters reports: Recession Hurts Medicare and Social Security. The New York Times blares: Recession Drains Social Security and Medicare. And CNN follows suit: Recession Hits Social Security Hard. This spin all comes out of the Social Security and Medicare Boards of Trustees annual report which is signed by Obama Treasury Secretary Tim Geithner, Obama Labor Secretary Hilda Solis, and Obama HHS Secretary Kathleen Sebelius. Their report blames the “economic recession” for growing shortfalls in both the Medicare and Social Security programs. But our entitlement crisis existed long before the current recession, and it will haunt us for decades to come unless something is done soon.

Spending on Social Security and Medicare already totals more than $1 trillion annually and accounts for more than one-third of the federal budget. Recession or no recession, entitlement spending is on track to double by 2050 and tax rates for all Americans would have to double if the programs are not fundamentally reformed. Continue reading…

So, would President Obama’s budget plan really increase deficit spending much more than other modern presidents? Well, yeah, to the tune of seven times more, measured as a percentage of economic output, than under President Kennedy over 45 years ago — as you can see in  this chart.

It’s one of the 37 easy-to-follow information graphics in Heritage’s updated and expanded 2009 Federal Revenue and Spending Book of Charts.

How much and how fast would our national debt go up under the Obama plan? Is it true that, amid the flood of government spending, the defense budget would fall to what it was before the 9/11 attacks?

In the Book of Charts, taxpayers will find clear answers to those questions about the new administration, along with other tax and budget trends important to them. For one: Tax rates will have to be doubled if Congress doesn’t reform Social Security, Medicare and Medicaid. Continue reading…

If former presidential candidate Ralph Nader, the greenest of all the greens, the man who played an integral role in starting the Environmental Protection Agency and passing the Clean Air and Clean Water Acts, opposes cap and trade, it’s probably not a good idea. Here’s what Nader told the New York Times concerning cap and trade:

I mean, it’s not going to work. It’s too complex. It’s too easily manipulated politically. Right now, they’re having a battle over whether they can even auction the credits off for money. The industry doesn’t want auctions for money. So, they’re already having a battle right from the takeoff. I have to call Markey and see why did he ever buy into that.”

The best case study is Europe. In essence, companies are able to meet emission targets by investing in clean energy development in other countries. The large problem is a number of these clean energy projects have been in the works for years or are completed already. The result is no cut in emissions.

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