Author: Heritage

  • Another Curve Ball from Iran on U.S. Prisoners

    On 02.03.10 04:00 PM posted by James Phillips

    In addition announcing the launch of a research rocket, three Iranian-made satellites, and a tactical shift on a proposed International Atomic Energy Agency deal on uranium,*President Mahmoud Ahmadinejad threw another disingenuous curve ball yesterday by claiming that talks were underway with the United States for an exchange of prisoners.

    In an interview on state television Tuesday, Ahmadinejad was asked about the fate of three American hikers detained in Iran and claimed that the United States, not Iran, was at fault: “They have arrested our citizens for nothing… this is very bad… now there are talks whether it is possible to do an exchange” of prisoners.

    <ahref="http://www.google.com/hostednews/afp/article/ALeqM5jbwTMZVmr7HSXllWRtIHH8hQiJnQ">The White House on Tuesday denied it had held “any discussion” with Iran about a possible prisoner swap. Iran is <ahref="http://blog.heritage.org/2009/11/11/iran%e2%80%99s-latest-american-hostages/">holding a number of US citizens in custody, including three American hikers — Sarah Shourd, Josh Fattal and Shane Bauer — arrested after mistakenly wandering over the Iraq border into Iranian territory last year. Iran has repeatedly rejected outside efforts to gain access to the three hikers to confirm that they are being held in good conditions.

    <spanid="more-25572"></span>Among the 11 Iranians that Iran alleges are “illegally” detained in the United States is nuclear scientist Shahram Amiri who disappeared in Saudi Arabia while on pilgrimage to Mecca last year. Iranian officials have accused Washington of kidnapping Amiri from Saudi Arabia, but the scientist, like others on Iran’s list, is believed to have defected from the increasingly repressive regime in Tehran. In addition to asserting a false equivalence between defectors and innocent hikers, Iran’s dictatorship also undoubtedly hopes to suggest that it is engaged in ongoing talks with the Obama Administration in order to demoralize the opposition movement which spontaneously sprang up to protest Iran’s sham elections last June. The opposition Green Movement has called for further demonstrations, including on the February 11th anniversary of Iran’s Islamist revolution.

    http://blog.heritage.org/2010/02/03/…u-s-prisoners/

  • Why China is Not an Economic Threat to the United States

    On 02.03.10 05:00 PM posted by David Weinberger

    Recent reports of China’s economic growth contrasted with the U.S. economic downturn have left Americans increasingly concerned that China is becoming a new <atitle="http://www.huffingtonpost.com/john-feffer/can-we-learn-from-china_b_446936.html" href="http://www.huffingtonpost.com/john-feffer/can-we-learn-from-china_b_446936.html">superpower, controls American finances and will surpass the United States as the world’s leading power. The reality is that the fundamentals of the American economy are stronger than China’s, and U.S. prospects are better.

    Let’s take exhibit A. It may appear that China contributes the most to world GDP and leads global growth given its <atitle="http://www.chinadaily.com.cn/china/2010-02/02/content_9411779.htm" href="http://www.chinadaily.com.cn/china/2010-02/02/content_9411779.htm">10.7 percent growth last quarter, as well as its <atitle="http://www.chinadaily.com.cn/china/2010-02/02/content_9411779.htm" href="http://www.chinadaily.com.cn/china/2010-02/02/content_9411779.htm">8.7 percent average growth last year. However, that’s not an indicative measure of a strong economy.

    Aside from the fact that China’s GDP numbers are <atitle="http://www.heritage.org/Research/AsiaandthePacific/wm2775.cfm" href="http://www.heritage.org/Research/AsiaandthePacific/wm2775.cfm">illusory (largely because of how the country calculates its GDP), a significant portion of the growth China is experiencing is not creating wealth, it is merely taking it from other countries. In other words, Chinese growth is partly the result of detraction from, not addition to, world GDP, which means much of its success is dependent upon others.

    <spanid="more-25547"></span>This is because of the way China’s economy is set up. China *relies on its trade surplus with the rest of the world as the lifeblood of its economy. It exports vastly more than it imports. Seen in this light, China sucks GDP from other countries in addition to creating its own. Therefore, while it may be leading the world in GDP growth, to a notable extent these GDP gains are the <atitle="http://www.heritage.org/Research/AsiaandthePacific/bg2366.cfm" href="http://www.heritage.org/Research/AsiaandthePacific/bg2366.cfm">result of China using the world to boost itself higher.

    That does not mean, however, that China does not produce anything. To the contrary, over the last couple of decades, China has contributed to the world economy. While China’s production has historically met consumer demand to keep prices low around the globe, the world-wide recession is now causing China to oversupply due to weak global demand, which could lead to deflation. This is hardly an indication of a sound, robustly-growing economy. If China does not start developing more of its own domestic economy for its people, trouble looms.

    Further, China is not America’s banker, as many people believe. President Obama’s *stimulus package was <atitle="http://www.heritage.org/Research/Economy/bg2354.cfm" href="http://www.heritage.org/Research/Economy/bg2354.cfm">bad policy, but the notion that China is now funding our economy as a result is a fallacy.

    America could get by without China funding its debt. What’s largely unknown is that <atitle="http://www.heritage.org/Research/AsiaandthePacific/bg2366.cfm" href="http://www.heritage.org/Research/AsiaandthePacific/bg2366.cfm">China officially holds less than 7 percent of U.S. *treasuries, and that Chinese bond purchases declined in 2009, to under $100 billion, while our deficit soared to an all-time high of $1.4 trillion.

    Moreover, China does not buy our debt for our sake; it does so it because it depends on an economy as large and sound as ours for its own growth propelled through trade:* <atitle="http://blog.heritage.org/2009/12/08/china-more-powerful-than-the-united-states/" href="../2009/12/08/china-more-powerful-than-the-united-states/">The same set of rules that keep its currency undervalued means, by law, it can’t spend at home the huge pile of cash that it sits on.

    In that respect, China is more directly tied to us than we are to them. If the United States were to discontinue trade with China, it would hurt them more than us.

    Finally, China is not going to surpass the United States*as the world economic leader any time soon. We control about a fourth of the wealth in the world – <atitle="http://blog.heritage.org/2009/12/08/china-more-powerful-than-the-united-states/" href="../2009/12/08/china-more-powerful-than-the-united-states/">more than China, India, Japan and the rest of Asia combined. Other indicators are just as definitive. The average American earns close to <atitle="http://blog.heritage.org/2009/12/08/china-more-powerful-than-the-united-states/" href="../2009/12/08/china-more-powerful-than-the-united-states/">fifteen times morethan the average person in China. If the *United States*keeps tax rates low, shows spending discipline, and brings the deficit down to promote solid economic growth, there is strong reason to believe that China will never surpass the United States*as the world’s largest economy.

    http://blog.heritage.org/2010/02/03/…at-to-the-u-s/

  • Sen. Mitch McConnell (R-KY) Addresses the War on Terror

    On 02.03.10 07:53 AM posted by Todd Thurman

    UPDATE: We are compiling Sen. McConnell’s remarks on a video that will be on this post later today, but in the mean time, you can read his remarks below:

    “Thank you. It’s an honor to be here. For nearly four decades, Heritage has equipped lawmakers with the tools they need to advance a conservative agenda based on the principles of free enterprise, limited government, freedom, and a strong defense. That work is as important today as ever. Our nation faces many urgent challenges, and among the toughest, most persistent of these are those that we face in the ongoing War on Terror.”

    “More than eight years have passed since September 11th. Yet we are continually reminded of the need to remain as vigilant now as we were in the weeks and months after that terrible day. The past few months have offered ample proof of that.”<spanid="more-25484"></span>

    “In September we learned of a plot to bomb the New York City subway. Soon after that, there was the tragic massacre at Ft. Hood. Then, on Christmas Day, there was the failed attempt by a foreign-born terrorist to kill nearly 300 innocent civilians in a commercial airliner in the skies over Detroit. Our elected leaders have no greater duty than that of protecting the American people from harm. And anyone who believes that the urgency of this responsibility has somehow faded or diminished since September 11, 2001, is horribly mistaken. We are very much at war.

    “Unfortunately, there are all too many signs that the current administration has a blind spot when it comes to prosecuting this war. Its handling of the Christmas Day bomber may have been the most egregious example, but it was no isolated case.”

    “Again and again, the administration’s approach has been to announce a new policy or to change an existing one based not on a careful study of the facts, but as a way of conspicuously distancing itself from the policies of the past, even the ones that worked. In short, it has too often put symbolism over security.”

    “This is a very dangerous route. And it reflects a deeper problem; namely, the return of the old idea that terrorism should be treated as a law-enforcement matter. An administration that puts the attorney general in charge of interrogating, detaining, and trying foreign combatants has a pre-9/11 mindset.”

    “The administration didn’t wait long to signal its new approach. On his third day in office, the President announced that Guantanamo would be closed within a year. Well, one year later, the administration is still trying to untangle the complex national security issues involved in fulfilling that pledge. Its own deadline has come and gone. And, thankfully, Gitmo is still open for business. But this was a dangerous precedent to set.”

    “Indeed, the administration’s approach to Guantanamo was just an early glimpse of how it would approach other terror-related policies. Rather than study the practical consequences of fulfilling its campaign pledges, it would choose again and again to hastily plow ahead and see what happened, rather than study the issue and then announce a plan.”

    “They did it again when they ended the CIA’s enhanced interrogation program. Rather than looking closely at the implications of shuttering this vital program, the administration simply ended it, without even getting final sign-off from the CIA, an omission that former CIA director Michael Hayden recently described — in an understatement — as “odd”. What’s worse, we’ve learned in the wake of the attempted Christmas Day bombing that it took the administration months to even set up a replacement program for the enhanced interrogation program it shut down at the CIA early last year.”

    “And now the administration is at it again with civilian trials for terrorists. In November, Attorney General Holder announced that Khaleid Sheikh Mohammed, the self-avowed mastermind of the 9/11 attacks, would not be treated the way foreign combatants captured on the battlefield have been treated since Revolutionary times. No, the man responsible for the deadliest domestic terrorist attack in U.S. history would be tried in the same courtroom as a common criminal, just a few blocks from where the World Trade Center once stood — again, without consulting with local officials, who know the situation best.”

    “The Obama Administration likes to point out that the previous administration tried some enemy combatants in civilian courts. That’s right. It did. And it was wrong to do so. The enemy in this fight is adaptable. We must be too.”

    “That’s how you win a war, by changing tactics; that’s precisely why Congress decided on a bipartisan basis to establish military commissions as the proper forum for trying enemy combatants. And that’s why, if the administration does not change its mind on trying 9/11 terrorists in Manhattan, we will do everything we can to deny them the funds they’ll need to do so. That’s my pledge.”

    “Mayor Bloomberg and a number of Democrats have suggested that a military base would be the appropriate place to try KSM. I couldn’t agree more. And I’ll even recommend a venue: a $200 million dollar state-of-the-art-facility at Guantanamo Bay.”

    “As recently as last year, Congress updated the Military Commissions Act with input from the White House. We realized civilian courts weren’t the right setting, and we did something about it. We were flexible. The Obama Administration, on the other hand, is not. My question is this: Why would the administration help rewrite the military commissions law if they didn’t intend to use it for the very people, like the Christmas Day Bomber, for whom it was written?”

    “Some have described the administration’s penchant for formulating new policies before thinking them through as a ready, fire, aim approach. Whatever you call it, it must not continue. The safety and security of our nation is at stake. And we will not hold the American people hostage to the good opinion of our critics in Europe or the pet theories of liberal academics. The Global War on Terror is not a theory to be discussed. It is a war to be won against Al Qaeda and other extremists. And that means our policies must be formulated, first and foremost, with an eye toward defeating these enemies. Nothing is more important.”

    “At first, many Americans were willing to give the administration the benefit of the doubt about its approach. Most people probably viewed Guantanamo as the right place to hold and to try terrorist detainees and didn’t quite understand the administration’s hasty decision to close it. But once it became clear that the administration hadn’t thought the decision through, most people expected it would have learned from its mistake. Instead, the administration has used the same hasty approach again and again. It has repeatedly announced a decision without a plan. And Americans are losing patience.”

    “The attempted Christmas Day bombing should have been a wake-up call. Unfortunately, there’s no evidence it was. The administration still appears more interested in managing its message than explaining to the American people and to lawmakers on both sides of the aisle why an Al Qaeda-trained terrorist fresh from Yemen and caught in the act of attempting to blow up an airliner was handed over to a lawyer after a 50-minute interview.”

    “Instead of addressing the substantive policy concerns many of us have expressed about this incident, the administration has put anonymous sources on the telephone with reporters to take shots at their critics. These anonymous sources have leaked information aimed at rehabilitating and justifying the administration’s mishandling of the Nigerian bomber.”

    “Yet despite their best efforts, the fact remains that all the intelligence he possessed concerning the locations, training techniques, and communications methods of Al Qaeda in Yemen is perishable. Yemeni forces needed that information on December 25th, not six weeks later. Meanwhile, the American people are left to wonder whether, in place of interrogations, their safety depends on terrorists having families who can persuade them to talk.”

    “The Administration did make one sensible move after the attempted Christmas Day bombing. It halted the transfer of detainees from Guantanamo to Yemen. But this is something we should have done a year ago. We were already aware of the high rate at which detainees released from Gitmo are returning to the fight. It shouldn’t have taken a narrowly-averted tragedy like the attempted Christmas Day bombing to change that policy.* Anti-terror policies should be made before plots are hatched, not after.”

    “The simple fact is this: the only thing that kept the Christmas Day Bomber from succeeding was his own incompetence. And relying on incompetence is not the way to defeat Al Qaeda.”

    “Many Americans were troubled by the administration’s response to the Christmas Day attack. And they’re equally outraged by its decision to treat the Christmas Day bomber as a criminal defendant who deserved a lawyer, instead of a terrorist who could provide us with vital information to help stop new attacks. Americans wanted us to get every bit of information we could about Al Qaeda from this man. Instead, the administration put a higher priority on reading him his Miranda Rights and getting him an attorney.”

    “Which brings us to a deeper problem; namely, the administration’s apparent belief that terrorism is a narrow law enforcement — not a military and intelligence — matter. The fact is, the administration’s handling of the Christmas Day Bomber should come as no surprise to anyone. The events of December 25th may have focused many peoples’ minds on the practical consequences of a pre-9/11 mentality. But anyone who’s paid attention to the administration’s terror-related policies over the past year can see a clear pattern at play here.”

    “Since his very first days in office, the President has been placing the attorney general in charge of key intelligence and military and defense matters. The closing of the military detention facility at Guantanamo is being coordinated by the Attorney General. The special task force on interrogation and transfer policies is chaired by the Attorney General. The Interagency Task Force on Detainee Disposition is co-chaired by the Attorney General.”

    “These are enemy combatants. Yet instead of leaving the review of these policies in the hands of military and intelligence personnel, the President, by executive order, has handed all three over to his chief law enforcement officer. So it’s no wonder that time and time again we see a law enforcement mentality intrude into military and intelligence operations. This is wrong. The Attorney General should not be running the War on Terror.”

    “Many of us were hoping the President would explain the reasoning behind the Administration’s handling of the Christmas Day bomber in his State of the Union address. He did not. And since neither the President, nor anyone else in his Administration has provided the answers Americans are demanding, I, along with several of my colleagues, have asked Attorney General Holder to testify before the Congress to explain the Administration’s response to the attack.”

    “So far, we haven’t gotten a response. But Americans continue to be deeply troubled that our ability to obtain vital intelligence was ignored in this case — or worse yet, not recognized — due to the administration’s insistence on informing a terrorist he had the right to remain silent and that we’d be happy to provide him a lawyer. Have they forgotten that the first thing KSM did when he was caught in 2003 was ask for a lawyer? Al Qaeda knows what it’s doing.”

    “The administration’s preference for civilian courts for terrorists is another symptom of its law-enforcement mindset. There is no doubt that Al Qaeda will use a civilian court room in New York or a new long-term detention facility inside the United States for the same recruiting and propaganda purposes for which they’ve used other courts and Guantanamo in the past. And this fact alone eliminates the administration’s only justification for closing Guantanamo.”

    “The bottom line is this: Treating terrorism as a law enforcement matter is precisely the attitude that kept us from seeing this threat when we should have. Reverting to it now is not only dangerous, it’s potentially disastrous.”

    “Hasty decisions and sudden policy reversals rattle the confidence not only of the American people, but also the brave Americans who execute these policies. And they rattle the confidence of our partners overseas. Just as the U.S. was slow to recognize the Al Qaeda threat, so too were many of the Muslim nations we now work with in defeating them.*Some initially resisted being allied with us. Many had previously sent fighters to battle the Soviet Union in Afghanistan.*When these governments are attacked and take on this fight, we must assist them.”

    “Part of that cooperation involves doing everything we can to gain valuable intelligence from captured detainees. It’s counterproductive to deny the intelligence community the ability to question terrorists. And we cannot send detainees held at Guantanamo back to places like Yemen where they can quickly reenter terrorist networks.”

    “No one denies that a balance must be struck between preserving civil liberties and protecting the homeland. No one wants to sacrifice one for the other. But in many cases, all that’s involved is a simple question of judgment. And when a judgment call has to be made, our priorities should be clear: keeping Americans safe should always win out, within the law.”

    “Regrettably, that has not always been the first choice of this administration. They’ve grappled with these questions. But Americans know that in this fight, in this Global War on Terror, getting the strategy partly right will only lead to partial success. And as the attempted Christmas-Day bombing showed all too plainly, partial success isn’t good enough.”

    “The Obama Administration is doing the right thing in Afghanistan. Our commitment and that of our partners has given Afghanistan and its government a real chance to succeed. But our partners need to know that the U.S. has the endurance to remain committed to both Pakistan and Afghanistan, and to reverse the momentum of the Taliban in Afghanistan.”

    “In this regard, the Obama Administration’s announced deadline of July 2011 for the withdrawal of U.S. forces leaves our partners wondering about our long-term commitment. It also reflects the same mind-set as the other decisions I’ve mentioned. The priority shouldn’t be establishing an arbitrary deadline. The priority should be prevailing in this war, however difficult that may be.”

    “The good news is this: if the administration adjusts course, there is good reason to hope historians will look back on 2010 as a turning point not only in our fight with the Taliban, but also as the year in which America achieved a balance in the war against Al Qaeda, as the year in which the pendulum swung back into its proper place.”

    “To that end, Republicans will continue to advocate for a strong, principled foreign policy that keeps America on the offense in this war and provides our intelligence professionals and servicemen and women with all the tools they need. Part of that effort is pointing out mistakes as we see them.”

    “The war on Al Qaeda will continue for years to come. In order to prevail, we must continue to use all the reasonable tools that have served us well in the past and remain focused on the threat. Republicans will work with the Administration to strike the right balance in fighting terror both at home and abroad. This is not too much to hope for, and it’s not too much to expect. Bipartisanship is not always easy to come by in Washington. But it is achievable. And in this war, my view is that it’s absolutely necessary.”

    “Thank you.”

    http://blog.heritage.org/2010/02/03/…war-on-terror/

  • Another Taxpayer-Funded Medicaid Bailout

    On 02.03.10 08:56 AM posted by Kathryn Nix

    </p>As President Obama’s recently-released budget for 2011 reveals, with or without a health care reform bill, Medicaid stands to receive a big, taxpayer-funded bailout.* Again.* The 2011 Budget includes $25 billion in additional funding for state Medicaid programs as an extension of the bailout that was included in the 2009 economic stimulus bill.

    <ahref="http://www.heritage.org/Research/HealthCare/wm2235.cfm">As Heritage analysts Dennis Smith and Nina Owcharenko argued then, depending on federal bailouts to carry Medicaid through economic hardships is bad policy.

    The stimulus bill provided increased federal matching rates for Medicaid programs in all fifty states.* This splurge in spending was accompanied by no caveats or strings attached to require true Medicaid reform, which is sorely needed.* Instead, the federal government succeeded only in propping up the failed policies behind the broken government program, encouraging continued sluggishness in actual improvements to the system.<spanid="more-25493"></span>

    What is more, federal bailouts of state Medicaid programs set states up for short-term dependency on federal dollars which will lead to long-term budgetary problems when these funds expire.* Nothing could make this clearer than the Medicaid bailout extension included in President Obama’s 2011 budget.

    <ahref="http://online.wsj.com/article/SB10001424052748703762504575037220630245164.html?m od=WSJ-hpp-LEFTTopStories">In a recent article in the Wall Street Journal, Janet Adamy explains that additional Medicaid funding was included to respond to Congress’ stalled efforts to achieve comprehensive health care reform.* Both of the health care bills would have expanded Medicaid and increased federal matching rates.* <ahref="http://online.wsj.com/article/SB10001424052748703762504575037220630245164.html?m od=WSJ-hpp-LEFTTopStories">According to Adamy, “Some states were so confident Congress would pass a health bill that they included the extra Medicaid funds in their state budgets.”* Thus the need for additional bailout money: state fiscal irresponsibility, encouraged by Washington.

    If Congress had structured the previous bailouts correctly in the first place, this additional bailout may not have been necessary.* <ahref="http://www.heritage.org/Research/HealthCare/wm2235.cfm">Smith and Owcharenko outline how this should have been done.* Of course, the economic stimulus should not have included increased government spending in the first place.* Rather, tax cuts should have been used to invigorate the economy.

    That aside, a Medicaid bailout should have established criteria to ensure that states accepting more funding took the necessary steps to improve their programs.* States should have also been required to submit plans for long-term reform.* Medicaid beneficiaries currently suffer from lack of access to care due to outdated reimbursement systems.* Addressing this would improve the quality of care for enrollees.* Lastly, both state and federal governments should have made a commitment to achieving serious entitlement reform as a part of the bailouts, assuring they would not be needed in the future.

    But none of this happened.* Instead, once the extra federal funding expires, states will be left to deal with balancing their budgets and footing the bill for the same low-performing Medicaid programs.

    http://blog.heritage.org/2010/02/03/…icaid-bailout/

  • Obama Continues Down Road to Greater Job Loss, Less Freedom

    On 02.03.10 09:30 AM posted by Mike Brownfield

    <ahref="http://blog.heritage.org/wp-content/uploads/Obama_Rhetoric090413.jpg"></p>President Barack Obama reiterated his “jobs will be our number one focus” State of the Union talking point in New Hampshire on Tuesday, but all indications are that he is continuing down the path that led America to less economic freedom – and fewer jobs – in 2009.

    Heritage’s Brian Riedl <ahref="http://www.heritage.org/Research/Budget/wm2787.cfm">conducted a quick analysis of President Obama’s Fiscal Year 2010 budget and found that the President’s policies would hike taxes by more than $2 trillion over the next decade (counting health care reform and cap-and-trade), raise taxes for 3.2 million small businesses and upper-income taxpayers by an average of $300,000 over the next decade, leave permanent deficits that top $1 trillion in as late as 2020, and double the publicly held national debt to over $18 trillion.

    Increasing taxes and a growing federal government don’t spell good news for America’s economic freedom or prospects of job growth, but even more trouble abounds. Matthew J. Slaughter, associate dean and professor at the Tuck School of Business at Dartmouth, <ahref="http://online.wsj.com/article/SB10001424052748704022804575041253835415076.html?m od=googlenews_wsj">wrote in Wednesday’s Wall Street Journal that there is even more bad news for U.S.-based multinational firms buried in the President’s budget:

    <spanid="more-25506"></span>

    Deep in the president’s budget released Monday-in Table S-8 on page 161-appear a set of proposals headed “Reform U.S. International Tax System.” If these proposals are enacted, U.S.-based multinational firms will face $122.2 billion in tax increases over the next decade.

    The fundamental assumption behind these proposals is that U.S. multinationals expand abroad only to “export” jobs out of the country. Thus, taxing their foreign operations more would boost tax revenues here and create desperately needed U.S. jobs.

    This is simply wrong. These tax increases would not create American jobs, they would destroy them.

    As Slaughter explains, <ahref="http://online.wsj.com/article/SB10001424052748704022804575041253835415076.html?m od=googlenews_wsj">when U.S. multinational firms expand abroad, there is an increase in investment and employment in their related American parent companies, meaning that more jobs are created at home. And he cites U.S. Bureau of Economic Analysis statistics which show that from 1988 through 2007, as “affiliates” overseas increased employment by 5.3 million jobs, U.S. parent companies correspondingly increased employment by 4.3 million jobs.

    The <ahref="http://www.heritage.org/index">2010 Index of Economic Freedom reveals that the markets suffer, the environment for growth and job creation is threatened and economies are less free when tax burdens go up and Washington undertakes bailouts, massive stimulus spending and other dangerous interventionist decisions. This certainly happened in the United States in 2009. Last year, <ahref="http://blog.heritage.org/2010/01/08/jobs-decline-in-december-as-obama-jobs-deficit-continues-to-climb/">3.4 million jobs were lost, with losses occurring in every single month of the year. And with the President pushing for even more taxing, spending and federal government interventionism, America is heading down the path to even less economic freedom and less prosperity. That, of course, means fewer jobs.

    http://blog.heritage.org/2010/02/03/…-less-freedom/

  • Innovation Missing from President?s Educate to Innovate Program

    On 02.03.10 10:00 AM posted by Lindsey Burke

    </p>The Educate to Innovate campaign recently <ahref="http://www.whitehouse.gov/the-press-office/remarks-president-educate-innovate-campaign-and-science-teaching-and-mentoring-awar">announced by President Obama may become the latest addition to the Department of Education’s hall of inefficient and costly federal programs. The President revealed a plan to increase taxpayer funding for teaching programs by $10 million and lauded a promise by 75 public universities to graduate thousands of new science and technology teachers over the next 5 years.

    Dave Saba, President and CEO of the <ahref="http://www.abcte.org/about-abcte">American Board for Certification of Teacher Excellence (ABCTE), a non-profit organization that provides an alternative route to teacher certification for experienced professionals, <ahref="http://edbizstrategy.blogspot.com/2010/01/calling-out-president-obama.html">points out the shortcomings of the President’s initiative:

    According to the President, public university presidents have committed to training 10,000 new math and science teachers annually by 2015. Later in the speech we find out this is a whopping 2,500 over what these schools do now. And there were 75 universities that made this pledge. So we do some simple division to find out that this is a staggering 33 new math and science teachers per school.…But we read further and find out that you can’t take this on all at once – no – they will achieve this groundbreaking innovation 5 years from now. In essence, each school has to add 6 new teachers per year.

    <spanid="more-25508"></span>While the rather unimpressive totals of the Educate to Innovate plan reinforce the federal government’s inability to provide a one-size-fits-all solution for American education, organizations such ABCTE are efficiently meeting the needs of schools and districts across the country. ABCTE enables science, math, and technology professionals with years of experience in their fields access to a cost effective route into the classroom, without expending precious taxpayer dollars. As Saba notes,

    Last year ABCTE certified 219 new math and science teachers and that was 75 over what we did the previous year and we are on track to certify well over 350 this year. And our program only costs each of our teachers $975 – about 5% of what it will cost the universities.

    Similarly, a truly innovative trend in both public schools and charter school movements to utilize online classes and full-time “cyber schools” may open the door for a greater number of potential science, math, and technology teachers. Heritage’s Dan Lips <ahref="http://www.heritage.org/Research/Education/bg2356.cfm">summarizes the many benefits of virtual education, which include the possibility of providing every child with access to a quality math or science teacher – regardless of their zip code:

    In some subjects, such as science and mathematics, some schools have difficulty employing skilled teachers and therefore cannot offer students instruction in certain subjects. However, through online learning, a student attending a school without a physics teacher, for example, could learn physics from a teacher in another school district or even in another state.

    Virtual learning is on the threshold of becoming a widespread educational phenomenon. Couple that innovation with cutting-edge alternative teacher certification programs such as ABCTE, and expensive, top-down “solutions” from Washington quickly appear archaic. Considering the cost to both students and taxpayers for a traditional four-year degree and teaching certificate from a state university, the Educate to Innovate plan sounds less like a creative solution and more like an expensive endorsement of the status quo.

    http://blog.heritage.org/2010/02/03/…ovate-program/

  • In Their Own Words: Spending Our Way Out of the Recession

    On 02.03.10 10:30 AM posted by Brandon Stewart

    <ahref="http://blog.heritage.org/wp-content/uploads/Congressman_Clyburn100203.jpg"></p>House Majority Whip*Rep. James Clyburn (D-S.C.) was <ahref="http://thehill.com/blogs/blog-briefing-room/news/79039-clyburn-weve-got-to-spend-our-way-out-of-this-recession">quoted in <ahref="http://thehill.com/blogs/blog-briefing-room/news/79039-clyburn-weve-got-to-spend-our-way-out-of-this-recession">The Hill earlier this week discussing the country’s economic outlook. Despite the President’s recent efforts to talk about savings, Rep. Clyburn took a different tack, saying that “wouldn’t help alleviate the recession.” He added:

    “We’re not going to save our way out of this recession. We’ve got to spend our way out of this recession, and I think most economists know that.”

    Beyond the fact that this <ahref="http://www.heritage.org/Research/Budget/wm2787.cfm">budget provides little in the way of savings, Rep. Clyburn is right that we need to be doing more to get our economy back on track. However, that does not include spending more money that we don’t have. Especially in light of <ahref="http://blog.heritage.org/2010/02/01/tarp-inspector-general-same-road-faster-car/">a harsh report from the TARP Inspector General this month, it is clear that this Administration’s flawed economic policies have <ahref="http://blog.heritage.org/2010/01/12/morning-bell-787-billion-in-stimulus-zero-jobs-created-or-saved/">failed to provide the sustained economic growth necessary for the markets to rebound. We need a return to <ahref="http://www.heritage.org/LeadershipForAmerica/enterprise-and-free-markets.cfm">common sense policies that will spur innovation and job growth by empowering the private sector, not Washington.

    http://blog.heritage.org/2010/02/03/…the-recession/

  • NAFTA Should Not Take the Fall for Mexico’s Failure to Reform

    On 02.03.10 10:59 AM posted by Jim Roberts

    <ahref="http://blog.heritage.org/wp-content/uploads/cargo_containersUSA.jpg"></p>Participants at a <atitle="http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=24271" href="http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=24271">recent conference in Washington blamed Mexico’s failure to achieve above-average economic growth in the past decade on the North American Free Trade Agreement (NAFTA). *This criticism is unfair and unwise.* The NAFTA agreement is one of the best examples in recent history of a successful, mainstream, and bipartisan project.* According to the <atitle="http://www.chamberpost.com/2009/02/nafta-at-15-assessing-its-benefits.html" href="http://www.chamberpost.com/2009/02/nafta-at-15-assessing-its-benefits.html">U.S. Chamber of Commerce, in the 15 years since NAFTA came into force annual U.S. trade with Canada and Mexico has tripled to nearly $1 trillion.* More than 100,000 small and medium-sized U.S. firms now employ Americans to produce goods and services for export to our NAFTA neighbors.

    NAFTA was conceived by President Bush 41, ardently supported by President Clinton (at some considerable political cost to himself), and later promoted as a good model for economic development under the administration of President George W. Bush.* The discussion at the Carnegie Endowment seems to be an ideologically driven departure from something that has delivered good results and should be continued.<spanid="more-25521"></span>

    The real problem, of course, has been the steady refusal of the deeply entrenched public-sector labor unions and politicians on the left in Mexico and the corporatist enablers who head Mexico’s many monopolistic and oligopolistic companies to make the <atitle="http://www.heritage.org/Research/LatinAmerica/bg2135.cfm" href="http://www.heritage.org/Research/LatinAmerica/bg2135.cfm">badly needed economic and governance reforms that would open key sectors such as energy to competition and private foreign and domestic investment. *NAFTA has been a success for both the U.S. and Mexico, to the extent that it has been permitted to succeed in both countries.* Unfortunately, since President Obama came into office he and the U.S. Congress have taken some steps that conflict with either the letter or the spirit of NAFTA (e.g. the cases of “<atitle="http://www.heritage.org/Research/LatinAmerica/wm2357.cfm" href="http://www.heritage.org/Research/LatinAmerica/wm2357.cfm">Mexican Trucks” and <atitle="http://www.heritage.org/Research/LatinAmerica/bg2135.cfm" href="http://www.heritage.org/Research/LatinAmerica/bg2135.cfm">“Buy America”).

    President Felipe Calderon has been trying to get some reforms through the Mexican Congress, but has been largely stymied. *The answer is not “to overhaul NAFTA” but to finish the overhaul of the economy and to observe NAFTA rules in the U.S.

    http://blog.heritage.org/2010/02/03/…ure-to-reform/

  • McConnell Takes Aim At White House Terror Spin

    On 02.03.10 11:41 AM posted by Mike Gonzalez

    Senate Minority Leader Mitch McConnell (R-KY) today swung hard against a public-relations campaign by the Obama Administration to clean up its tattered image over its handling of the war on terrorists, and especially Nigerian terrorist Umar Farouk Abdulmutallab.

    In a <ahref="http://blog.heritage.org/2010/02/03/watch-live-sen-mitch-mcconnell-r-ky-addresses-the-war-on-terror/">major address at The Heritage Foundation, McConnell gave a point-by-point refutation of all of the administration’s failures in this area, from the decision to close the detention facilities at Guantanamo Bay to the botched attempt to try some terrorists in New York. But McConnell took special aim at the administration decision to treat Abdulmutallab as a common criminal after the al Qaeda terrorist tried to blow up a plane over Detroit on Christmas Day.

    It was the first significant Republican response to a concerted effort by the White House to catch up to yet another looming PR disaster. The White House mop-up effort came after intensified criticism, even from Democrats in Congress, of the administration’s decision to read Abdulmutallab Miranda rights 50 minutes into his interrogation on Christmas Day.<spanid="more-25548"></span>

    McConnell’s address followed 24 hours in which administration sources selectively leaked to the media that Abdulmutallab has been cooperating with authorities for weeks. Many in the media have, of course, bought the White House line that confessions can be obtained even while trying terrorists like common criminals and without enhanced interrogation techniques.

    But McConnell said intelligence is “<ahref="http://blog.heritage.org/2010/02/03/watch-live-sen-mitch-mcconnell-r-ky-addresses-the-war-on-terror/">perishable” and that the country’s safety cannot depend on a terrorist having family members cajoling him to talk—a response to the administration sources’ claim that they have flown Abdulmutallab’s family from Nigeria to convince him to cooperate.

    “All the intelligence he possessed concerning locations, training techniques and communications methods of al Qaeda in Yemen is perishable,” <ahref="http://blog.heritage.org/2010/02/03/watch-live-sen-mitch-mcconnell-r-ky-addresses-the-war-on-terror/">said McConnell. “Yemeni forces needed the information on Dec. 25, not six weeks later. Meanwhile the American people are left to wonder whether, in place of interrogation, their safety depends on terrotists having families who can persuade them to talk.”

    And while the Obama Administration’s handling of the Christmas Day bomber was the “most egregious” example of its “blind spot” when it comes to fighting the war on terror, “it was not an isolated case,” said McConnell. He also lambasted Attorney General <ahref="http://www.cbsnews.com/stories/2010/02/03/politics/main6170460.shtml">Eric Holder’s actions on terrorism and questioned the administration’s wisdom for putting its trust on him when it comes to our national defense. “This is wrong. The attorney general should not be running the war on terror.”

    The overall thrust of the Obama Administration’s war on terror has not been to pursue what works but to “conspicuously distance itself from the policies of the past, even the ones that worked.”
    On closing the facility at Guantanamo Bay where the terrorists are held, <ahref="http://blog.heritage.org/2010/02/03/watch-live-sen-mitch-mcconnell-r-ky-addresses-the-war-on-terror/">McConnell asked, “Why are they closing it? Because the Europeans don’t like it?”

    And McConnell made a pledge on the <ahref="http://www.cbsnews.com/blogs/2010/02/02/politics/politicalhotsheet/entry6166417.shtml">Manhattan trials. If despite all the bad publicity it is getting, the Obama Administration stubbornly attempts to try terrorists there, “we will do everything we can to deny them the funds.”

    You can <ahref="http://blog.heritage.org/2010/02/03/watch-live-sen-mitch-mcconnell-r-ky-addresses-the-war-on-terror/">read McConnell’s speech here.

    You can follow Mike Gonzalez on Twitter <ahref="http://twitter.com/Gundisalvus">@Gundisalvus

    http://blog.heritage.org/2010/02/03/…e-terror-spin/

  • Al-Qaeda’s Expansion into Nigeria

    On 02.03.10 12:00 PM posted by Morgan Roach

    <ahref="http://blog.heritage.org/wp-content/uploads/nigeriaflag020310.jpg"><imgsrc="http://blog.heritage.org/wp-content/uploads/nigeriaflag020310.jpg" alt="" title="nigeriaflag020310" width="300" height="325" class="alignnone size-full wp-image-25562" /></p>Al-Qaeda’s strength in Africa is expanding.* Cells in northern Africa are spreading southwards to Nigeria, eager to recruit impressionable Muslims to join their international terror network.* In the wake of January’s violent clash between Christians and Muslims in the diverse city of Jos, al-Qaeda’s immediate reaction was to <ahref="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020101705.html">equip and train young Muslims for jihad. According to the <ahref="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020101705.html">Washington Post, Abdelmalek Droukdel, leader of al-Qaeda in the Islamic Maghreb (AQIM) announced that al-Qaeda is prepared to provide training, manpower, munitions, and various other resources to push Nigeria’s young men into jihad.

    Considering the high levels of poverty and limited governance throughout the country, many Nigerians are left susceptible to extremist activity.* While roughly 40 percent of Nigeria’s 149 million citizens are Christian and 50 percent are Muslim, the two religions are geographically divided with the Muslims residing in the northern part of the country and the Christians in the south. The violence last January <ahref="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020101705.html">killing 326 people has left the Muslim population vulnerable to terrorist recruitment.* Nigeria’s government has done very little to curb this threat.* Its own president Umaru Yar’adua has been out of the country, seeking medical care in Saudi Arabia and unable to run the country.<spanid="more-25527"></span> In a town hall meeting <ahref="http://www.state.gov/secretary/rm/2010/01/135863.htm">Secretary of State Hillary Clinton, decried the Nigerian government as failing to respond to the legitimate needs of its youth.* She acknowledged that young people are finding other options and are often recruited by terrorist organizations as the Christmas Day bomber was.

    Terrorist organizations in Africa, such as Al-Shabab in Somalia and Boko Haram in Nigeria, aspire foremost to local or national influence rather than international terrorism.* While they generally harbor extremist sentiments towards the Western world, they lack the resources and the network needed to conduct operations against Europe or the United States.** Al-Qaeda, on the other hand has waged attacks on American soil and possesses the capabilities to attack again. *Therefore, when al-Qaeda provides smaller terrorist groups with sophisticated support to young men who would otherwise yield machetes and small arms, these terrorist groups immediately become a direct threat to national security.* In dealing with Nigeria, the U.S. needs to tackle the al-Qaeda challenge intelligently. *It must be careful not to radicalize a comparatively moderate Muslim population with heavy-handed treatment and public shaming, yet it needs keep steady pressure on a confused and distracted regime to cooperate in isolating and neutralizing the penetration of al-Qaeda into Nigeria and Western Africa.

    http://blog.heritage.org/2010/02/03/…-into-nigeria/

  • Obama’s Enthusiasm to Nuclear Energy is Encouraging, But…

    On 02.03.10 12:47 PM posted by Nick Loris

    President Obama reaffirmed his willingness to expand the commercial nuclear energy in the United States when he said in his State of the Union address <ahref="http://news.yahoo.com/s/ap/20100128/ap_on_go_pr_wh/us_obama_state_of_the_union_text">that we should be “building a new generation of safe, clean nuclear power plants in this country.” He backed it up by including an additional $36 billion in loan guarantees to nuclear energy projects. On top of the $18.5 billion allotted under the Energy Policy Act of 2005 (EPACT 2005), the total amount in loan guarantees now stands at $54.5 billion. Is this good or bad for the future of nuclear energy; more importantly, is it good for electricity consumers?

    It depends.

    The initial $18.5 billion in loan guarantees were to mitigate the massive government-imposed regulatory risk that inflate. It was meant to bring stability for the first handful of reactors built in the United States. Congress and the nuclear industry believed these provisions would provide predictability after years of erratic regulatory hurdles through targeted and limited temporary assistance.

    <spanid="more-25564"></span>

    But “Expansive loan guarantee programs are wrought with problems,” <ahref="http://www.heritage.org/Research/EnergyandEnvironment/wm2789.cfm">writes Heritage’s Research Fellow, Jack Spencer, in a new paper entitled, “<ahref="http://www.heritage.org/Research/EnergyandEnvironment/wm2789.cfm">Conditions and Policy Reforms Must Accompany Nuclear Loan Guarantee Boost.” He <ahref="http://www.heritage.org/Research/EnergyandEnvironment/wm2789.cfm">adds, “At a minimum, they create taxpayer liabilities, give recipients preferential treatment, and distort capital markets. Further, depending on how they are structured, they can remove incentives to decrease costs, stifle innovation, suppress private-sector financing solutions, perpetuate regulatory inefficiency, and encourage government dependence.”

    Nuclear loan guarantees alone won’t bring about a nuclear renaissance in the United States; in fact, by themselves they will likely do more harm than good. However, if coupled with a set of conditions that limit the scope of the program, the negative impact of loan guarantees can be contained while maximizing their benefit. The nuclear loan guarantee program should be conditioned on: ending further loan guarantees, ensuring that recipients pay the full cost of the subsidy, making recipients privately refinance within five years of project completion, limiting guarantees to no more than two plants of any reactor design and limiting two thirds of the loan money to supporting a single technology. Other reforms necessary to create a sustainable nuclear industry consist of finding a solution for waste management, making the regulatory process more efficient, and equipping the NRC to regulate multiple reactor technologies.

    You can read more in Spencer’s paper, <ahref="http://www.heritage.org/Research/EnergyandEnvironment/wm2789.cfm">here.

    http://blog.heritage.org/2010/02/03/…-but%e2%80%a6/

  • A Pledge Small Businesses Do Not Need

    On 02.03.10 12:54 PM posted by John Ligon

    <ahref="http://blog.heritage.org/wp-content/uploads/small-business-admin.jpg"></p>Facing the stark reality of double-digit unemployment and the failure of his first<ahref="http://www.washingtontimes.com/news/2010/jan/27/stimulus-price-tag-soars-as-jobless-rate-rises/"> $862 billion economic stimulus, President Barack Obama unveiled his second stimulus plan last month including a mix of subsidies and government-subsidized loans targeted solely at small business. Obama’s Second stimulus will be funded in part by roughly $33 billion from the TARP, <ahref="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/02/AR2010020200542.html?hpid=topnews">that will be then redirected to community banks through the Federal Small Business Administration (SBA).

    While the aim of promoting job growth through the “acceleration” of small business creation and expansion is laudable, businesses do not want more government intrusion.* Unfortunately, in an attempt to stimulate job creation and small business growth, the last round of pledges from the White House will only further expand government regulation over business.<spanid="more-25537"></span>

    Small business certainly comprises a large share of total employers in the US economy and as small businesses expand—or originate—<ahref="http://www.sba.gov/ADVO/research/data.html">there is more employment in local economies.* It is not clear, however, that there is a direct link between the loan guarantees provided through the SBA and <ahref="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=712622">the volume of small business lending in local markets

    Most importantly, despite holding nearly $90 billion in total loans (an increase of 70 percent since 2001), the SBA’s system of lending has fallen short on its ability to keep up with industry standards where <ahref="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1106179">the average quality of an SBA federally-guaranteed loan (in 2008 corresponding to a Moody’s rating of Ba) falls below that of a typical private, non-government subsidized loan. In a 2009 report, the Government Accountability Office discovered that the <ahref="http://www.gao.gov/products/GAO-10-53">“SBA does not follow sound validation practices or use its own data to independently assess the risk ratings, the effectiveness of its lender risk rating system…may deteriorate as economic conditions and industry trends change over time.”

    In addition, the President is promising that the SBA will guarantee the loans dispersed under this new round of stimulus spending at the 90 percent level.* Considering the mounting evidence against the ability of SBA to maintain industry standards, this should be worrisome to the American taxpayer since they subsidize these loans—<ahref="http://www.sba.gov/ADVO/research/data.html">under the current lending structure, SBA guarantees up to 90 percent that SBA lenders make to small businesses.

    Leaving aside the fact that the SBA has a poor track record of targeting effective loans and overseeing these loans it is vital to reiterate that small businesses will continue to react to uncertainty. The most pressing issue for every American is ensuring that the economy and net employment begins to rebound.

    Rather than entertaining poorly targeted policies, the White House and Congress should be spending time assuring American businesses that they are committed to a policy mix centered on permanently lowering capital gains tax rates, income tax rates, the estate tax, as well as mitigating regulation and employer mandates which would give businesses the necessary incentives to innovate and expand in the most efficient manner.

    http://blog.heritage.org/2010/02/03/…s-do-not-need/

  • Maybe Closing Gitmo is not in the Cards

    On 02.03.10 05:23 AM posted by James Carafano

    Politico reported yesterday that “The second-ranking House Democrat signaled Tuesday that the White House is reconsidering a plan to move Guantanamo detainees to a prison in northwest Illinois … Steny Hoyer (D-Md.) said he agrees that the Obama administration should reassess the plan to move terrorist suspects from the Cuba military base to Thomson Correctional Facility in the state’s northwest corner.”

    If Hoyer is sincere and his assessment of the White House is accurate … well, that it is almost too much to hope for. Could the president actually be thinking about implementing a rational*policy for detention, trials, and interrogation, rejecting wrongheaded initiatives that were formulated mostly to make happy talk to the left wing?

    Okay, perhaps, the “happy talk” crack is bit harsh, but lets be honest—the reality is Obama’s “strategy has unraveled faster than an old sock

    Republicans, however, should do anything but gloat.

    Political posturing on this issue is just making us less safe … and it gets worse everyday. Yesterday found the FBI gleefully reporting that they had the crotch-bomber talking. It is hard to believe anything but that this information came out to counter criticisms of the Administration for not turning him over to CIA interrogators. The problem is that I am sure al Qaeda appreciates knowing that the suspect is talking. The fact that he may be telling US investigators secrets is useful information to the enemy—thanks for sharing, FBI.

    It is past time for politicians in Washington to stop the insanity. Playing politics with these policies is compromising our national security and making a mockery of the rule of law.

    This is the perfect issue and the perfect time for the White House and the Congress to sit down and craft a true bipartisan plan. Here is why:

    1) Clearly this is the best interest of the nation. If there is one issue where policy should trump politics, this is it.

    2) We know what the realistic options are.

    This is the test for the left-wing, the right-wing, and the West Wing. If they can’t do this … what else matters?

    http://blog.heritage.org/2010/02/03/…-in-the-cards/

  • Morning Bell: The President?s Permanent Political Slush Fund

    On 02.03.10 06:32 AM posted by Conn Carroll

    After suffering major electoral and legislative defeats last month, President Barack Obama took to the campaign trail in Nashua, New Hampshire,*pitching his administration’s latest new plan to lower our nation’s double digit unemployment rate. This time, the President hopes to do for small businesses what Fannie Mae and Freddie Mac did for home mortgages. Specifically, he wants to create a new $30 billion “Small Business Lending Fund” which will loan money to banks with assets under $10 billion at favorable new rates, as long as they comply with a slew of new regulations designed to incentivize them to loan that money to small businesses. Never mind that a recent poll of small business owners by the National Federation of Independent Businesses ranked “Finance and Interest Rates” as the second to last most important problem facing their business.

    And just where does the President plan to get this new $30 billion? The President*explained yesterday: “This proposal takes the money that was repaid by Wall Street banks to provide capital for community banks on Main Street.” In other words, TARP – the $700 billion Troubled Asset Relief Program first signed into law by President George Bush, and then used by Treasury Secretary Hank Paulson to force many financial firms into taking taxpayer money they never wanted in the first place. But if Wall Street banks are paying-back their TARP funds, then how can President Obama say the following when justifying his* Financial Crisis Responsibility Fee:

    We want our money back, and we’re going to get it. And that’s why I’m proposing a Financial Crisis Responsibility Fee to be imposed on major financial firms until the American people are fully compensated for the extraordinary assistance they provided to Wall Street. If these companies are in good enough shape to afford massive bonuses, they are surely in good enough shape to afford paying back every penny to taxpayers. Now, our estimate is that the TARP program will end up costing taxpayers around $117 billion — obviously a lot less than the $700 billion that people had feared, but still a lot of money.

    So which is it? Are Wall Street banks repaying their TARP obligations in full so that the President can afford to spend $30 billion on his new Small Business Lending Fund? Or is TARP going to lose $117 billion? The answer is both. In reality, the major financial firms that took TARP money – many against their will – are paying-back those funds, and American taxpayers will get every single dime they are owed. But TARP has long since devolved from a one-time emergency action into a*crony-capitalist political slush fund. TARP will lose money. But those losses will come almost entirely from the bailouts of union-backed firms General Motors and Chrysler, as well as AIG. Of course, GM and Chrysler are exempted from President Obama’s Crisis Tax, as are the government firms at the core of the housing bubble – Fannie Mae and Freddie Mac. The President’s Crisis Tax has nothing to do with recovering unpaid taxpayer TARP money and everything to do with finding a new source of revenue to help cover up the Obama administration’s massive new spending increases.

    And unfortunately, more government spending and more government regulation are this administration’s answer to every economic problem. But more debt and more regulation will not create new jobs. According to a new Gallup poll, 57% of Americans are worried that there will be too much government regulation of business, half say the government should become less involved in regulating and controlling business, and only 24% say the government should become more involved in regulating and controlling business, which is exactly what the President’s new “Small Business Lending Fund” does. And remember that NFIB poll that showed borrowing costs as the next to last problem small businesses face? Well, that same poll also identified taxes as their second biggest problem and government regulation and red tape as the third. Americans and America’s small businesses know what will create new jobs, and it ain’t taxpayer campaign giveaways from the White House.

    Quick Hits:

    • Due to a debt burden that will climb to 97.5% of gross domestic product, Moody’s Investors Service said the United States will “test the Aaa boundaries” of their top debt rating.
    • House Majority Leader Steny Hoyer (D-MD) said Tuesday that the White House is reassessing a plan to move Guantanamo detainees to a prison in northwest Illinois.
    • The Obama administration’s top intelligence officials on Tuesday described it as “certain” that al-Qaeda or its allies will try to attack the United States in the next six months, and they called for new flexibility in how U.S. officials detain and question terrorist suspects.
    • Iran test-fired a new satellite rocket and unveiled three new telecommunications satellites and a new satellite-carrier engine.
    • MSNBC’s Keith Olbermann has lost 44% of his audience since President Barack Obama was sworn into office and is now third in the ratings behind Nancy Grace.

    http://blog.heritage.org/2010/02/03/…al-slush-fund/

  • Can U.S. Senators Be Recalled?

    On 02.02.10 08:05 PM posted by Benjamin Shelton

    In Arizona, Louisiana and a few other states, well-meaning citizens would like to recall their U.S senators. Fair enough. But while this opinion represents a commendable movement to make Congress more accountable for its actions, it tramples on the U.S. Constitution and undermines the rule of law.

    Popular Web sites to the contrary, the recall of members of the U.S. Congress has never been permissible according to the Constitution, and no member of the Congress has ever been removed by such means. That’s because the U.S. Constitution sets the qualifications and terms for being a member of the House or Senate; changing those qualifications or terms (as in making them subject to a recall) is unconstitutional and would require a constitutional amendment.

    <spanid="more-25445"></span><ahref="http://lugar.senate.gov/services/pdf_crs/Recall_of_Legislators_and_the_Removal_of_Members_o f_Congress_from_Office.pdf">Recall is not a new idea. At the Constitutional Convention, the Framers considered and rejected a national recall provision. Recall was raised again as an amendment in New York, but the 1788 ratifying convention defeated it. Why? Because the Constitutional structure held senators accountable. Originally, senators were elected by the state legislatures and were responsible to their state for their actions. At the same time, the Framers wanted to bring deliberation to the national legislature and sought to protect lawmaking from the whim of passion and majority faction. If legislators are constantly under the threat of instant recall, they will never be sure of their step, for fear of some impulse of the moment. So the Constitution creates a bicameral legislature–with the House subject to the changing sentiments of opinion, and the Senate, with its longer terms, bringing stability and deliberation.

    These considerations, however, should not lead us to believe the Framers did not provide a way to remove bad legislators. The Constitution contains an expulsion clause for members of Congress, though it has widely been neglected since the Civil War cases of disloyalty. The most effective means of removal is still election: if a member of Congress does not do their work well, then don’t return them to office.

    Some confusion about recall is understandable. During the Progressive era, recalls were instituted for state and local officers across the nation. To be clear, these changes did not apply to federal officers (i.e. senators, representatives, judges). <ahref="http://www.ncsl.org/default.aspx?tabid=16581">In 1908, Michigan and Oregon became the first states include recall in their state constitutions. Eighteen states currently continue this progressive legacy.

    It was also the Progressive movement that undermined the Senate’s role in protecting the states. The 17th Amendment made a fundamental change in the structure of our federal system when it was ratified in 1913. U.S. Senators, who were intended to represent the states and give an account to their state legislatures, are now popularly elected. Those who want to make the Senate once again accountable to the states would do well to consider reversing that change for the good of the Constitution.

    Benjamin Shleton currently is a member of the Young Leaders Program at the Heritage Foundation. For more information on interning at Heritage, please visit: <ahref="http://www.heritage.org/about/departments/ylp.cfm">http://www.heritage.org/about/departments/ylp.cfm

    http://blog.heritage.org/2010/02/02/…s-be-recalled/

  • Budget 2011: New Money, Old Ways in the State Department Budget

    On 02.02.10 10:00 AM posted by Helle Dale

    <ahref="http://blog.heritage.org/wp-content/uploads/Obama-Clinton-100202.jpg"></p>Increasing spending on the State Department and international affairs while freezing discretionary domestic spending is probably not likely to endear President Obama further to constituencies on either side of the Congressional aisle. Yet, the State Department is one of the few winners in President Obama’s FY 2011 budget request, continuing a five year commitment made last year to increase capacity at Foggy Bottom.

    The way the funding request is structured tells you much about the President’s priorities in foreign policy, which hold fairly closely to traditional Democratic priorities. It certainly does not reflect the big bold transformations that have been held out as the premise for the forthcoming Quadrennial Development and Diplomacy Review.

    <spanid="more-25355"></span>

    Yet, even the most lavish State Department budget shrinks by comparison with the behemoth $3.8 trillion budget colossus brought to Capitol Hill by forklift from the White House this morning. The President has requested $56.7 billion for the foreign affairs account, up from $50.9 billion in the final FY 2010 appropriation, an increase of about 9 percent. On coming into office President Obama and Secretary of State Hillary Clinton laid out an ambitious five year plan that was meant to almost double funding for State over five years to $69.3 billion in 2014. Whether that ambitious plan ever comes to pass seems dubious in today’s economic environment.

    This year’s increase, however, does not affect the operations of State as much as it does reflect the administration’s new focus on Pakistan and its determination to increase foreign aid. In fact, the State Department’s operations will see a decline from last year, when it admittedly did received a whopping increase. The biggest budget increase this year is in the newly minted Pakistan Counterinsurgency account, which will receive $1.2 billion. Other big increases to the President Global Health Initiative, which is up $684 million over last year to $8.5 billion. And traditional development assistance is up almost $450 million to $2.9 billion. The Millennium Challenge Corporation is also set to receive an increase in funding, albeit more modest from $1.1 to $1.3 billion. Appropriately, the Broadcasting Board of Governors, which oversees U.S. international broadcasting, is also marked for an increase from $1.1 billion this year to $1.28 billion next year. (Whether that increase will persuade them to restore unfortunate cuts in crucial language services is something to be watched.) Another big winner is the Peace Corps, which is scheduled to grow to 11,000 volunteera by 2016.

    Equally significant and perhaps predictable are the categories that are marked for significant decline is International Narcotics and Law Enforcement, Migration and Refugee Assistance, Foreign Military Financing, and Assistance for Europe, Eurasia and Central Asia. As President Obama’s foreign policy agenda seems to run short of steam in a world far more complex that apparently imagined by the new set of occupants in the White House, the administration is overall sticking to roads well travelled by former Democratic occupants of the office.

    Click <ahref="http://blog.heritage.org/tag/budget-2011/">here for more analysis on the 2011 Budget.

    http://blog.heritage.org/2010/02/02/…rtment-budget/

  • VIDEO: You Asked for Health Care Ideas, Mr. President. Here Are Three.

    On 02.02.10 10:30 AM posted by Mike Brownfield

    President Barack Obama asked Congress not to “walk away” from health care reform in his State of the Union address and to send him ideas for improving health care.

    Heritage’s Bob Moffit, director of the Center for Health Policy Studies, says there’s a problem with the Congressional health care plan the President would like to sign – the American people don’t want it. Moffit also has three specific ideas for health care reform that Congress should consider.

    Watch the video below, then join the debate in our comments forum:

    http://blog.heritage.org/2010/02/02/…ere-are-three/

  • Welcome and Get Well Soon!

    On 02.02.10 11:00 AM posted by Conn Carroll

    The United States health care system is <ahref="http://www.heritage.org/Research/HealthCare/bg2128.cfm">not nearly as free market and consumer driven as it should be. And while government <ahref="http://blog.heritage.org/2010/02/02/lessons-from-the-recent-past-rumors-of-obamacare%e2%80%99s-death-are-premature/">continues to slowly takeover our health care system, and Obamacare would fast-forward that development, the U.S. system is still more free than the Canadian “single-payer” system. And how is government run health care working for Canada? This past summer the Vancouver Coastal Health Authority considered cutting more than 6,000 surgeries to make up for a $200 million budget shortfall. British Columbia Medical Association president Dr. Brian Brodie called the proposed surgical cuts <ahref="http://www.vancouversun.com/story_print.html?id=1878506&sponsor=">“a nightmare.” Access problems are not new to Canadian’s single payer system. Since 2003, <ahref="http://www.timelymedical.ca/">Timely Medical Alternatives Inc. has helped Canadians “leave the queue” and get timely health care in the United States. Now <ahref="http://www.nationalpost.com/news/story.html?id=2510700">The Globe and Mail reports:<spanid="more-25385"></span>

    The heart and soul of Newfoundland politics is in for repair – and it’s not in his home province or even in Canada, for that matter.

    Newfoundland Premier Danny Williams is scheduled for heart surgery in the United States, a move that throws into question his province’s and his nation’s health-care system.

    A source confirmed to The Globe and Mail late Monday that Mr. Williams has left St. John’s for an undisclosed destination in the U.S. to have heart surgery later in the week.

    We welcome Premier Williams to the United States and sincerely hope he receives the best care that money can buy.

    http://blog.heritage.org/2010/02/02/…get-well-soon/

  • School Choice Bad for the Environment?

    On 02.02.10 11:18 AM posted by Nick Loris

    No, it’s not a joke. It’s the finding<ahref="http://pubs.acs.org/doi/abs/10.1021/es902932n"> from a new paper published in the journal Environmental Science & Technology. The argument is school choice leads to more driving which results in more vehicle emissions. The abstract <ahref="http://pubs.acs.org/doi/abs/10.1021/es902932n">says, “that eliminating district-wide school choice (i.e., returning to a system with neighborhood schools only) would have significant impacts on transport modes and emissions” and the findings “underscore the need to critically evaluate transportation-related environmental and health impacts of currently proposed changes in school policy.”

    George Mason economist Don Boudreaux <ahref="http://cafehayek.com/2010/02/facts-are-facts.html">appropriately responds in an open letter to the authors:

    Why stop with education? Perhaps another future study can be on the environmental impact of supermarket choice. After all, with people free to drive wherever they wish to buy groceries, it’s almost certainly the case that too many of us drive hither and yon unnecessarily, wasting our time and fouling the air. I’ll bet that your research will show that restricting each American to shopping only at that supermarket nearest to his or her home will reduce vehicular emissions and, hence, help the environment.

    <spanid="more-25419"></span>

    Indeed, the possibilities suggested by your research are infinite. No telling how much filth is spit into our environment everyday by people needlessly driving to churches, restaurants, shopping malls, gyms, physicians’ offices, night clubs – even friends’ homes – when they could easily go to (and, hence, should forcibly be restricted to) churches, restaurants, etc. – and even to the homes of friends – who are located closer to their where they live.”

    Although it sounds implausible and probably is, environmental policies designed to restrict consumer choice already exist or members of our government are proposing them. Our government is picking off individual freedoms and slowly but surely reducing consumer choice. Vehicle regulations to increase fuel efficiency make cars smaller and less safe. The phase-out of incandescent light bulb will commence in 2012. There are some who want to <ahref="http://www.alec.org/am/pdf/nrtf/logomasini.pdf">ban bottled water because it creates too much waste and uses too much energy.

    And if there are serious concerns about vehicle emissions, we should measure the inconsequential effects additional driving would have on health and global warming against the <ahref="http://www.heritage.org/Research/Education/SchoolChoice/">benefits of school choice. Having choice is an invaluable benefit of being an American and the more the government attempts to restrict it, the less it will be taken for granted.

    http://blog.heritage.org/2010/02/02/…e-environment/

  • The States Fight Back: Virginia Rejects Obamacare?s Individual Mandates

    On 02.02.10 11:33 AM posted by Dani Doane

    <ahref="http://blog.heritage.org/wp-content/uploads/Seal_of_Virginia020210.jpg"><imgsrc="http://blog.heritage.org/wp-content/uploads/Seal_of_Virginia020210.jpg" alt="" title="Seal_of_Virginia020210" width="300" height="300" class="alignnone size-full wp-image-25422" /></p>Yesterday the U.S. Constitution and federalism won a key battle. The Virginia Senate, which has a Democrat Majority, passed a bill <ahref="http://www.washingtonpost.com/wp-dyn/content/article/2010/02/01/AR2010020103674.html">prohibiting a requirement for Virginians to purchase health-care insurance. Five Democrats from swing districts joined all of the Senate Republicans in voting in favor of the measure. And with a Republican State House and Governor, this bill is expected to make it into law.

    Some would argue that the legislative implications are negligible as the federal government, if it wants, can override state law and that an individual mandate could be authored in such a way to not run afoul of this Virginian measure. However, the practical implications of this effort are widespread. What are these?

    The Constitution is Back in Vogue. Many of the elite politicians and media insiders ridicule anybody who questions health care federalism and the Constitution. The liberal leaders in Congress could not believe that the American people would value our nation’s Founding principles over their precious health care reforms. However, the fact of the matter is that <ahref="http://blog.heritage.org/2009/12/10/morning-bell-obamacare-is-seriously-unconstitutional/">these are serious issues that deserve deep thought and discussion.<spanid="more-25402"></span>

    Obamacare Setback. Passage of the Virginia measure will further stymie efforts in the House and Senate to get Obamacare to the President’s desk. Even if the federal government can supersede State authority, members from those states that pass these initiatives will have a hard time voting for something that is clearly against the will of their constituencies. For example Sens. Jim Webb (D-VA) and John Warner (D-VA) in particular will now have to justify why they have not considered the expressed will of the elected legislators from Virginia.

    States Fighting Back. With the health care debate in limbo, news outlets are highlighting state efforts to protect their residents from federal Government intrusion. In addition to Virginia, <ahref="http://blog.heritage.org/2010/02/02/outside-the-beltway-states-consider-prohibiting-the-individual-mandate/">over 2/3rd’s of the States have introduced measures to stop individual mandates on health care. Many State Attorney Generals have threatened to sue if current federal reform proposals are passed into law. State legislators across the country are considering various bills that would allow their state to opt out of key provisions of Obamacare or provide state voters a chance at the ballot box to reject nationalized health care in their state.

    Regardless of legislative components of the Virginia action yesterday, Conservatives should cheer the resurgence of federalism and what it means for reigning in the rapidly increasing federal government. With most states starting their legislative sessions, this may be just the beginning of what could be the “Year for State Sovereignty.”

    http://blog.heritage.org/2010/02/02/…dual-mandates/