February 26, 2008 ~ Vol. 10, No. 9

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Democrats Demagogue Poverty. Again.

The Democrats are at it again. Both Sen. Clinton and Sen. Obama have made "poverty" a central theme of their campaigns, promising to lift up the poor and put a chicken in every pot, a large screen TV on every wall, and a new car in every driveway.

Predictably, the government, i.e., taxpayers, will be expected to underwrite a raft a new programs to alleviate the problems of the poor. Those of us old enough to remember President Lyndon B. Johnson’s "War on Poverty" also recall that there were poor then and there are poor now.

On March 16, 1964, LBJ launched his War on Poverty with his Economic Opportunity Act saying that "It strikes at the causes, not just the consequences of poverty", but we all know the causes.

Some poor people are born into poverty because their parents are poor. They often exacerbate the problem by dropping out of school, insuring that they lack an adequate education to secure jobs that pay well for real knowledge and skills. Others use drugs to escape the pain of poverty and often become part of the revolving door of the prison system. Some women become pregnant early in life without a husband and incur poverty as a result. Some are just lazy and think work is for suckers.

According to a 2004 article in the Christian Science Monitor, noting the 40th anniversary of the War on Poverty, as LBJ was announcing his plans the poverty rate in America was actually in decline from 22.4 percent to about 19 percent. The rate would fall to about 11 percent by 1973.

By the 1990s, public opinion about what should be done to reduce poverty and its cost to the nation had changed. Republicans advocated welfare reform, passed in 1996, and recipients were expected to get a job. The welfare rolls have since declined in most, if not all states.

Johnson’s War on Poverty predictably expanded the federal bureaucracy, creating a job corps, a work-training program, and work-study program. LBJ championed Medicare and Medicaid that later were enacted into law. Both, like Social Security, are tottering on bankruptcy in the near future and, of course, Congress has its head in the sand hoping the problem will go away.

The Democrats have always been seen as the party that has the greatest concern for the poor, while Republicans have been portrayed as largely indifferent as well as home to the nation’s richest citizens. Considering how closely the divide is in terms of voters, it would seem that both parties have an equal number of rich and poor. There are lots of Democrat millionaires and some like Bill Gates, the quintessential example of a self-made billionaire, are forever bleating about the poor. He is free to give away as much of his wealth as he wants, but many of the middle class are finding it increasingly difficult to make ends meet.

A Washington Post article in August 2007 noted that, "The nation’s poverty rate declined last year for the first time this decade, but the number of Americans without health insurance rose to a record 47 million, according to annual census figures released yesterday."

It should be noted that the decline in General Motor’s fortunes are closely tied to the health insurance demands of its unions. Across America, businesses sought to divest themselves of their employer-sponsored insurance coverage, thus accounting for the rise in the uninsured. Health insurance and poverty should be treated as separate issues.

In general, about 12 percent of the nation’s population has always been ranked as below the poverty line established to determine what it costs to live in America. This figure rises and falls with the cycles of employment and is affected often by events well beyond the control of the government. Globalization continues to have an impact.

The government, of course, plays a role when it raises the minimum wage requirements for small businesses and large. The utter indifference to the annual flow of a million illegal immigrants taking jobs that would otherwise be available to low income Americans is yet another factor for any rise in poverty.

The rich whom Speaker of the House, Nancy Pelosi seems to resent pay the vast majority of the taxes the government collects. "The rich have gotten richer, but every other income group under the Bush administration has lost ground," laments Speaker Pelosi, ignoring the fact that she and her husband are very much among those rich Americans, as are all the members of Congress. This ignores the fact that America is all about getting rich.

Indeed, the failure of Sen. John Edwards’ candidacy, based on his "Two Americas" theme, pitting the rich, i.e. the middle class, against the poor, is a good indicator that most Americans understand the fundamentals of what causes poverty and what alleviates it.

Now the nation’s economy is suffering from the failure of the government to exercise oversight over the mortgage lending industry and Wall Street’s inventive schemes to bundle subprime mortgage vulnerability into new ways to make money. The failure to rein in the credit card industry will no doubt create a similar problem.

America has a portion of its population that is below the poverty line and someone should point out that America has always had this problem. The failure to address the invasion of millions of illegal aliens has put hospitals into bankruptcy, burdened school systems with millions more in property taxes to educate their children, and added millions to the cost of crime, law enforcement, and incarceration.

LBJ’s War on Poverty barely made a dent in it. Democrat proposals will also fail. Listening to Democrat candidates for president bleat about the poor should raise a note of caution because they clearly do not want to address the real problems facing the nation. In his farewell message, Sen. John Edwards said that both Hillary Clinton and Barack Obama had pledged to make "ending poverty" central to their campaigns. It has never been done because it cannot be done.

There will always be poor Americans. Among the answers to solve the problem will be measures to encourage the creation of new jobs, reducing regulations that strangle growth, and reforming a poorly performing education system.

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Irrational Legislation

I heard from Friends of the Earth, a huge environmental organization, who one would think would favor the Lieberman-Warner Climate Security Act of 2007 being advanced by Senate Democrats. It would impose a cap-and-trade program to force reductions of so-called greenhouse gas emissions.

FOE, however, was wailing about the way "it lavishes up to $1 trillion on industries responsible for global warming and in return asks for reduction targets well below what scientists say are necessary." This is typical of the Greens for whom enough is never enough. It also reflects their insane hatred of the very industries that underpin the nation’s economy, i.e., jobs, exports, the whole enchilada.

This legislation is unnecessary for one reason. There is no global warming and the primary greenhouse gas the Greens are forever worrying about, carbon dioxide, constitutes barely 0.038% of the earth’s atmosphere.

Thus there is no need to reduce carbon dioxide (CO2) emissions. To do so means wrecking the economy.

Kenneth P. Green, a resident scholar at the American Enterprise Institute, recently had a commentary posted on the website of
Tech Central Station titled "How Not to Address Climate Change." You may have noticed that the Greens now routinely talk about "climate change" as opposed to "global warming." For the record, over the past 4.5 billion years of the earth’s existence, there has not been a single day without some climate change occurring.

Green said that, "cap-and-trade schemes are fundamentally flawed, and particularly ill-suited to greenhouse gas control." This is assuming that any real reductions could ever be achieved without returning human society to a time when horses were the primary means of transportation and the Industrial Revolution had not begun.

Even putting aside the fact the European Union has had a cap-and-trade scheme for several years during which none of the nations have ever met its reduction goal, Green correctly identifies the Lieberman-Warner Act as "an irrational policy."

The Act would require U.S. per capita emissions to fall by a total of 13.8 percent over the 2000-2012 period, plus an additional 20.2 percent from 2012 to 2020, and a further 27.6 percent from 2020 to 2030. This adds up to "about 25 to 35 times greater " than all of the emissions from 1990 to 2000. This represents a "regulatory drag on economic growth" and no growth, as you might have noticed lately, means no new jobs and the likely loss of many existing ones.

Green also notes that such schemes provide "incentives to cheat." Lastly, it would generate "a perpetual group of rent-seekers—those raking in profits in new carbon trading" that would want more and more restrictions on greenhouse gas emissions.

Finally, need it be pointed out that, aside from the fact that there is no threat of global warming (the earth is actually showing clear signs of a climate cooling trend) such a program is utterly and completely useless unless every other nation on earth also reduces its greenhouse gas emissions and that, my friend, is not going to happen.

This cap-and-trade scheme involving the sale and purchase of "carbon credits" is so completely bogus that, like the financial meltdown resulting from the mortgage loan mess, it would surely cause one that would make the nation’s current financial problems look like a kindergarten picnic.

It is a market based on nothing, on "carbon credits" involving any use of energy. Our entire economy, indeed everything that passes for our lifestyle and standard of living, is based on the use of energy. What better way to destroy it? "Its benefits are non-existent", said Green.

It is a totally irrational policy. This bill is making its way through the Senate. It is not unlike the December "energy" bill that, among other things, bans the purchase and presumably the manufacture of Thomas Edison’s incandescent light bulb starting in 2012. Its ethanol mandates have driven up the cost of corn around the world and has already led Brazilian ranchers and farmers to destroy a huge section of that nation’s rainforest for more grazing and growing acreage.

We normally call such things unintended consequences, but there is nothing unintended about the Lieberman-Warner bill. Its authors and supporters know exactly what it will do. And they don't care.

Meanwhile, anyone with a wit of sense knows that humans never have and never will have the slightest "control" over the weather or the climate.

You might want to tell your senator that. Only a major wave of resistance, comparable to the way the public was able to stop the recent amnesty bill, will kill this horrid piece of legislation.

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