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The Policy and Commentary Blog of The Heartland Institute
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The Slow, Sure Death of “Climate Change” Lies

May 22, 2014, 2:20 PM

Even though President Obama continues to lie about “climate change” and employs the many elements of the federal government to repeat those lies, this huge hoax is dying.

Obama is on record saying that climate change “once considered an issue for the distant future, has moved firmly into the present” and is “affecting Americans right now.” Climate change as studied by climatologists is measured in terms of centuries whereas the weather is what is happening today. It has been happening before and since the rise of civilization. Obama’s claim that “climate-related changes are outside of recent experience” and “have become more frequent and/or intense” is a lie from start to finish.

The White House recently released its latest “National Climate Assessment.” It is 841 pages of outlandish claims that reflect the lies generated by the United Nations Intergovernmental Panel on Climate Change. When you consider that the federal government spends an estimated $2.6 billion annually in grants for climate research, about the only beneficiaries are those “scientists” employed to further the hoax.

The UN’s IPCC was created in 1983 and has issued a series of reports whose sole intention has been to frighten people around the world with claims of global warming that are scientifically baseless.

The Heartland Institute, a non-profit market-based think tank, responded by creating the Nongovernmental International Panel on Climate Change (NIPCC) and by sponsoring a series of international conferences. The 9th conference will be July 7-9 in Las Vegas. That effort began in 2003 in cooperation with the Science & Environmental Project led by Dr. S. Fred Singer and was joined by the Center for the Study of Carbon Dioxide and Global Change.

I am an advisor to the Institute, having written about environmental and energy issues for several decades at this point.

Calling on thousands of scientists around the world, in 2013 the NIPCC published the first of a three-volume response to the IPCC’s fifth assessment. This year, it has published a volume of Climate Change Reconsidered devoted to biological impacts, a 1,062 page opus. The NIPCC is an international panel of scientists and scholars with no government affiliation or sponsorship, and it receives no corporate funding.

Writing in the Financial Post in October 2013, Lawrence Solomon, the executive director of Energy Probe, a Toronto-based environmental group, noted that “solar activity is now falling more rapidly than at any time in the last 10,000 years.” The Earth’s climate is primarily a reflection of solar radiation or the lack of it. From 1300 to 1850, the Earth was subject to a mini-ice age. While the global warming hoax began in the late 1980s, Solomon noted that, in the 1960s and 1970s, the scientific consensus was that the Earth “was entering a period of global cooling. The media in those years was filled with stories about a pending new ice age.

It was only the intervention of the UN’s IPCC that changed the “consensus” to one of global warming. A cooling cycle that began around fourteen years ago could lead to another mini-ice age or the planet could be on the cusp of a full-fledged one. On average, the interglacial periods of the Earth have lasted about 11,500 years and we are at the end of such a period.

Climate Change Reconsidered II devoted to biological impact features scientific studies that conclude:

# “Atmospheric carbon dioxide (CO2) is not a pollutant.” Considering that all vegetation on Earth depends on it, it is not surprising that another conclusion was that the ongoing rise in the air’s CO2 content is causing a great greening of the Earth.

# As a result, “there is little or no risk of increasing food insecurity due to global warming or rising atmospheric CO2 levels and that terrestrial ecosystems have thrived throughout the world as a result of warming temperatures and rising levels of atmospheric CO2. Multiple lines of evidence indicate animal species are adapting, and in some cases, evolving, to cope with climate change of the modern era.”

# In addition, “rising temperatures and atmospheric CO2 levels to no pose a significant threat to aquatic life and that a modest warming of the planet will result in a net reduction of human mortality from temperate-related events.”

The irony of the latest NIPCC report, of course, is that it responds to the claims of global warming and carbon dioxide’s role at a time when the Earth is cooling. It makes one wish that all the talk about “greenhouse gases” is true enough to help us escape from the present cooling.

One thing we do know for sure is that the Greens talk of climate change has lost its grip on the public imagination and attention. As the cooling cycle continues, people around the world will be far more focused on increased evidence of massive ice sheets at both poles, on frozen lakes and rivers, on shortened growing seasons, and on the desperate need for more fossil fuels to warm our homes and workplaces.

© Alan Caruba, 2014

Categories: On the Blog

Thorner: Shocking Far Reaching Tentacles of the Common Core

May 22, 2014, 1:00 PM

For most individuals, what is next revealed will be the most shocking aspect of Dr. Duke Peta’s revelations during his presentation titled, “Common Core: Dangers and Threats, as the featured speaker at a Northern Illinois Patriot’s meeting on Tuesday, May 13: “The National Sexuality Education Standards – Core Contents and Skills, K-12″, published January, 2012. These standards were developed to address the inconsistent implementation of sexuality education nationwide and the limited time allocated to teaching the topic. As with the Math and Language Arts, the idea is to create a universal standard.

Does the federal government have any business teaching sex? Five and six year old students must be able to define different kinds of family structure. By seven, students must be able to define how boys and girls are supposed to act. Might this infer that a boy is a boy or a girl a girl simply because culture made them that way? The National Sexuality Education Standards won’t be introduced as a separate curriculum, but will be woven into the teaching of other Common Core subjects.
On page 12 of The National Sexuality Education Standards: By the end of 2nd grade, students should be able to: Use proper names for body parts, including male and female anatomy.

On page 14:  By the end of 5th grade, students should be able to: Describe male and female reproductive systems including body parts and their functions. Identify medically-accurate information about female and reproductive anatomy. Define sexual orientation as the romantic attraction of an individual to someone of the same gender or a different gender.

On page 9 under “Guiding Values and Principles”: Students need opportunities to engage in cooperative and active learning strategies, and sufficient time must be allocated for students to practice skills relating to sexuality education.

A father was rightly upset with this sexual education poster hanging in the classroom of his 13-year old middle school student with this title: “How do people express their sexual feelings?”

Then there is the privacy invasion of Data Mining which was created as part of the nationalized Common Core standards scheme, funded with Obama stimulus money, with grants also coming from the liberal Bill and Melinda Gates Foundation. The feds want to use schools to catalog “attributes, dispositions, social skills, attitudes, and intrapersonal resources, independent of intellectual ability,” all under the guise of education. Per agreement, every state signing on to receive 2009 stimulus funds were mandated to share student information with the federal government. Personally identifiable information will be extracted from each student, including parents’ names, address, Social Security Number, date of birth, place of birth, mother’s maiden name, etc.

Under “Guidance for Statewide Longitudinal Data System (SLDS),” a detailed plan for “data stewardship” in education, sensitive information will likewise be gathered which delves into the intimate details of students’ lives, such as 1) Political affiliations or beliefs of the student or parent, 2) Mental and psychological problems of the student or the student’s family, 3) Sex behavior or attitudes, and 4) Religious practices, affiliations, or beliefs of the student or the student’s parent.

It gets creepier yet!  There have been reports of the use of student-monitoring techniques such as “functional magnetic resonance imaging” and “using cameras to judge facial expressions, an electronic seat that judges posture, a pressure-sensitive computer mouse, and a biometric wrap on kids’ wrists.”  These devices are not yet in use here in Illinois, but they are being employed in states where Common Core standards have been around for several years.

Many states are experiencing sticker shock at the cost of implementing Common Core. It is estimated that states will spend up to an estimated $10 billion up front, then as much as $800 million per year for the first seven years that Common Core is up and running. Much of the additional cost is for Common Core-aligned textbooks and curriculum, as well as teacher training, technology upgrades (computers are needed), testing and assessment. This additional expense comes at a time when many states and school districts are struggling to stay afloat. These massive, unfunded mandates will undoubtedly fall on the backs of taxpayers.

According to child psychologist, Dr. Megan Koschnick, Common Core standards are developmentally and age inappropriate. You can watch the video here of Dr. Koschnick’s full presentation given at a conference held at the University of Notre Dame on September 9 by the American Principles Project (APP), in conjunction with thePioneer Institute and the Heartland Institute.

As related by Dr. Megan Koschnick during her presentation;

Instead of thinking about what’s developmentally appropriate for kindergarteners, they are thinking [college] is where we want this kindergartener to end up, so let’s back track down to kindergarten and have kindergarteners work on these skills from an early age. This can cause major stress for the child because they are not prepared for this level of education.

Heartland Institute’s Joy Pullman had this to say:

Dr. Koschnick’s analysis makes it clear what other early childhood professionals have said: Common Core asks small children to behave like little adults, and they are not little adults. Anyone who cares for a small child could tell you this. This is a further consequence of the Common Core lead writers’ lack of experience and professional reputation, and of its committees excluding experts in early childhood.

Educators are under so much pressure to prepare students for the upcoming Common Core-aligned standardized tests – the PARCC exam to debut in 2015 – they are ramping up math and reading instruction and eliminating a number of other activities from the school day.  The result: Students in the early grades are feeling so “bogged down” that “during the last hour of the day, they’re unteachable.”

As to the stress students are experiencing, young elementary students are hiding out in school bathrooms as a way of coping with stress when faced with confusing math problems and other new learning approaches required by Common Core.  Chicago-area parents and a veteran educator aren’t surprised by the recent revelation that one of the city’s pre-K-8 schools is cracking down on kids’ bathroom breaks in order to “maximize student learning and reduce the loss of instructional time.”  Students are also complaining of having headaches or stomach aches.

There are states who are now rethinking the Common Core State Standards they signed up for back in 2010.  But not so fast!  It will not be easy to opt out of Common Core.  As with Obamacare and the push for manmade Global Warming, the Left, and some on the Right, are not going to allow their long-held dreams to be terminated without fighting tooth and nail to keep the programs in place.  Too much time, effort and money has been invested to bring the programs to fruition.  The controversial programs also align with U.N. Agenda 21, which grew out of the Rio Conference of 1992.  G. H. Bush represented the U.S.A at the Conference.

With Common Core, the Gates Foundation has spent more than $170 million to develop and promote the Common Core Standards.   As its biggest nongovernmental backer, Bill Gates is worried about the “bumpy” implementation in some states and some of the political attacks that have been lobbed at the Common Core.  In an attempt to beat back “false claims” lobbed by critics, Bill Gates told several thousand educators gathered for the inaugural conference of the National Board for Professional Teaching Standards — a nonprofit organization that runs a voluntary system to certify teachers — to help parents understand the new Common Core academic standards.  Gates suggested that critics were uninformed.

“We the People” still have a voice.  We cannot allow our children to become puppets of a socialist Leftist agenda without putting up a fight.  Our nation’s survival as a free and liberty-loving country depends on what we do today.  Talk with your neighbors and friends, especially those with children in public schools; speak out at school board meetings against Common Core; express your concerns to legislators, state and federal; and write Letters to the Editor to local newspapers about the chilling truth behind Common Core State Standards.
Article 1:  Thorner: Chilling Truth Behind Common Core State Standards, May 20, 2014

http://illinoisreview.typepad.com/illinoisreview/2014/05/ready-thorner-chilling-truth-behind-common-core-state-standards.html#more

Categories: On the Blog

China’s Ascent in World Transport

May 22, 2014, 9:00 AM

After years of closing the gap with the United States, China built enough freeways in 2013 to amass the greatest length of freeways in the world. Between 2003 and 2013, China expanded its national expressway system, with interstate (motorway in Europe) standard roadways from 30,000 to 105,000 kilometers (18,000 to 65,000 miles). This compares to the 101,000 kilometers (63,000 miles) in the United States in 2012. China’s freeway system is also longer than that of the European Union, which was 70,000 kilometers in 2010 (43,000 miles) and Japan (8,000 kilometers or 5,000 miles) as is indicated in Figure 1 (Note 1). The ascent of China is evident across the spectrum of transport data, both passenger and freight.

A review of transport statistics in the four largest world economies (nominal gross domestic product) shows considerable variation in both passenger and freight flows. It also reflects the rapid growth of China. Generally comparable and complete data is available for the European Union, the United States, China and Japan.

Passenger Travel

All four of the world’s largest economies rely principally on roads for their passenger transport. The United States continues to lead in road volume (in passenger kilometers, see Note 2) by a substantial margin, followed by the European Union. In the United States, automobiles account for 83 percent of domestic passenger travel, which compares to 76 percent in the European Union and 58 percent in Japan. China’s combines automobile and bus data, which makes it impossible to obtain automobile comparisons with the other three economies.

Road travel increased more than 150 percent between 2003 and 2013 in China. Yet roads have barely held their market share as China has built new world-class airports, such as Capital City in Beijing, Baiyun in Guangzhou and many others. Over the same 10 years air travel has increased 350 percent. Meanwhile, China has built the world’s most extensive high-speed rail system and has experienced healthy rail travel growth. Yet, despite this, passenger rail’s market share has dropped from 35 percent to 29 percent over the period (Figure 2).

 China is dominant among the four economies in passenger rail volumes, with its 1.05 trillion annual passenger kilometers (0.65 trillion passenger miles) accounting for more than 2.5 times the rail travel in both the European Union and Japan. US rail travel is no more than 1/20th that of China (equal to the road travel volume in the state of Arkansas).

The United States continues to lead in a domestic airline travel, with a volume approximately 60 percent greater than those of the European Union and China. China trails the European Union by only two percent and with its growth rate seems likely to assume the second position before long (Figure 3).

Passenger travel market shares are indicated in Figure 4.

Freight Transport

After having led the world in rail freight volumes in recent decades, the United States has recently yielded the title to China. In 2013, China moved nearly 3 trillion tonne kilometers (Note 3) of freight by rail, compared to the US total of 2.5 trillion (2012). It may be surprising to find out that Europe, with its extensive passenger train system moves so little of its freight by rail. However, the European Union moved approximately 60 percent less of its freight by rail. However, much of the capacity of the EU’s rail system is consumed by passenger trains, leaving little for freight.  This is despite a policy commitment in the EU to substantially increase the rail freight market share relative to trucks. As a result, in Europe, the freight trains are “on the highway” (see Photo below). China has been uniquely successful among the world’s economies in developing both a world class freight rail system and a world class passenger rail system. One of China’s early objectives in developing its high speed rail program was to free space for its large freight train volumes.

Caption: Trucks on the A7, north of Barcelona (by author)

Among other nations, only Russia can compete with China and the United States in rail freight, having moved approximately 2.2 trillion tonne kilometers in 2012.

Rail freight remains by far the most important in the United States compared to the other three largest economies. Rail freight continues to carry more tonne kilometers in the United States than trucks. The situation is much different in Europe, where trucks carried four times the volume of freight rail. Rail freight is even less significant in Japan, where trucks carry more than 15 times the volume of rail freight.

One possibly surprising fact lies with the substantial increase in China’s
truck volumes over the last decade. China now has a volume of truck traffic
that is four times that of trucks in either the European Union or the United States.

In 2003, trucks carried 60 percent less of the nation’s metric tonne mileage than freight rail. By 2013, that had been reversed with tracks carrying 130 percent more volume than freight rail.

However China’s dominance is even greater in water borne freight, at nearly 6 times the European Union
volume and more than 10 times the volume of the United States (Figure 5). Even so, China’s largest freight volumes are carried on waterways, such as the Yangtze River. Over the past 10 years waterway volumes tripled. It is even expected that there will be a significant increase in shipping on the ancient Grand Canal (Figure 6).

Freight market shares among the major modes are shown in Figure 7.

India

Another of the world’s largest economies, India, also relies heavily on roads. According to the World Bank 65 percent of the freight and nearly 90 percent of passengers are carried by roads in India, though late detailed data is not available. Yet India also has the largest passenger rail usage in the world. Only China is close, and the two nations have been near equal, at least over the last decade. In 2003, China trailed India by seven percent in passenger kilometers by train. Complete Indian Railway data for 2013 is not yet available. However, if the average trip length in 2013 was the same as in 2012, China will have moved to within two percent of India’s passenger rail volume. Both nations are far above Japan and the European Union, ranked third and fourth, and almost 90 percent above Russia, which has a reputation for high passenger rail volumes.

The Future

With economic growth in China slowing (though still at rates that would satisfy virtually any other nation) its transport growth of the past decade seems likely to moderate. On the other hand, the other large emerging economy, India, which has substantially trailed China, could assume a Chinese trajectory. The newly elected Bharatiya Janata Party (BJP) government is committed to economic advance and infrastructure development. Market facilitating policies like those that have propelled China (see the late Noble Laureate Ronald Coase and Ning Wang, How China Became Capitalist), could lead to a similar story about India in a decade or two.

——

Note 1: The latest data on international transport varies by year, even within nations (such as the United States). This analysis compares the latest data, which is 2012 (Europe and Japan), 2013 (China) and the United States (2011, with some 2009). This latest years available permit comparing the general scale of differences and, particularly in the United States, changes from the earlier data are likely to have been modest, as a result of the Great Financial Crisis and the great economic malaise that has followed. The principal data sources are the Bureau of Transportation Statistics in the United States, the National Bureau of Statistics in China and Eurostat for the European Union and Japan.

Note 2: A passenger kilometer (or passenger mile) is the distance traveled times the number of passengers. Thus, a car going 5 kilometers with one passenger produces 5 passenger kilometers. With two passengers, there are 10 passenger kilometers.

Note 3: A tonne kilometer is a metric tonne (2.204 pounds or 1,000 kilograms) of freight times the number of kilometers traveled. The US ton (short ton) has 2,000 pounds or 907 kilograms.

—-

Wendell Cox is principal of Demographia, an international public policy and demographics firm. He is co-author of the “Demographia International Housing Affordability Survey” and author of “Demographia World Urban Areas” and “War on the Dream: How Anti-Sprawl Policy Threatens the Quality of Life.” He was appointed to three terms on the Los Angeles County Transportation Commission, where he served with the leading city and county leadership as the only non-elected member. He was appointed to the Amtrak Reform Council to fill the unexpired term of Governor Christine Todd Whitman and has served as a visiting professor at the Conservatoire National des Arts et Metiers, a national university in Paris.

Photograph: Grand Canal in Suzhou (by author)

Categories: On the Blog

Healthcare Fixed, on to Climate Change

May 21, 2014, 11:56 AM

Now that 8 million or more have signed up on health insurance exchanges under the Affordable Care Act (ACA), the President is deploying his phone and his pen to solve another urgent problem: climate change. This will require another transformational change that no previous President has been able to bring about, as they were unable to get around a recalcitrant Congress.

This problem is related to our health also. As some public health authorities have declared, global warming (now called “climate change”) will bring dengue fever, malaria, and other mosquito and tick-borne diseases across our borders.

We do of course already have mosquitoes here. In Tucson, we also have lots of kissing bugs and packrats, the intermediate host for Chagas disease. We are not yet reporting transmission of Chagas within the U.S., though we are screening blood donors. And bedbugs and head lice, once uncommon, are becoming rampant everywhere.

We are no longer screening most entrants to the U.S., like we once did at Ellis Island, to keep human carriers of infectious diseases out.

We used to have malaria in Alaska and Siberia, but it was mostly eradicated in the U.S. and Europe by mosquito control. That is, by DDT. In living memory, trucks used to go down the streets of Houston spraying DDT. And Mexican migrant workers were dusted with DDT when they crossed the Rio Grande. Half a billion human lives were saved by DDT—a remarkably safe compound. J. Gordon Edwards used to eat it by the tablespoon at his lectures.

Fortunately, the malaria problem was mostly solved here before William Ruckelshaus, head of Nixon’s Environmental Protection Agency, took it upon himself to ban DDT in 1974—despite a truckload of scientific evidence refuting Rachel Carson’s Silent Spring alarmism.

That’s where the EPA got its power, which has increased by leaps and bounds.

Malaria kills African babies by the millions, and international authorities work to prevent even indoor household spraying of DDT, far and away the best method we have. While the EPA and international health bureaucrats are mostly white guys, this is not racist or genocidal—unlike use of the “N” word now or in the remote past. It is good for population control, which is a high-priority public health goal, and reduces the potential “carbon footprint.”

Obama will use—is using—the massive power of the EPA to fight climate change. Besides dengue fever, he intends to decrease asthma attacks by reducing pollution and seasonal allergies by preventing higher temperatures (with more plant growth producing more pollen).

Although the predicted global warming has been stalled for about 16 years, and we had an exceptionally harsh winter, the warming (or “change,” which could even include “colding”) is in the “pipeline” (not the Keystone Pipeline). All the government-approved scientists say so, and any who rely on government grants dare not dispute them.

The Great Thermostat has been shown to be carbon dioxide and other greenhouse gases—specifically those released in human activities such as burning hydrocarbon fuels, as opposed to volcanic eruptions or outgassing from the oceans. Giving the EPA the authority to regulate carbon dioxide as a “pollutant” gives it the power to control virtually everything.

Of course we can’t actually “decarbonize” everything because all living things are made out of organic (carbon-based) chemicals. But we can greatly suppress human-caused emissions. The first target is the coal industry. Obama’s promise to kill the coal industry, particularly coal-fired power plants, is one he is on track to keep. Oil and natural gas are next—restrictions on diesel-fueled trucks, stopping the Pipeline, denying drilling permits even in defiance of court orders, trying to kill fracking, and so on.

The actual effect on global temperature would be negligible even if we could shut down the 40 percent of our electrical generating capacity that depends on coal. But it would be a “good start.”

The public has become unenthusiastic, but Obama is cranking up the sales efforts that work so well for Obamacare. Electricity bills may skyrocket, but think of all the jobs we could have by replacing backhoes with shovels.

More exercise, less meat, fewer calories altogether. Yes, the fight against climate change is good for our health.

###

About the author/contributor:

Jane M. Orient, M.D., Executive Director of Association of American Physicians and Surgeons, has been in solo practice of general internal medicine since 1981 and is a clinical lecturer in medicine at the University Of Arizona College Of Medicine. She received her undergraduate degrees in chemistry and mathematics from the University of Arizona, and her M.D. from Columbia University College of Physicians and Surgeons. She is the author of Sapira’s Art and Science of Bedside Diagnosis; the fourth edition has just been published by Lippincott, Williams & Wilkins. She also authored YOUR Doctor Is Not In: Healthy Skepticism about National Health Care, published by Crown. She is the executive director of the Association of American Physicians and Surgeons, a voice for patients’ and physicians’ independence since 1943. Additional information on health-related issues: http://takebackmedicine.com/  Dr. Orient’s position on Obama’s healthcare reform: “The Obama plan will increase individual health insurance costs, and if the federal government puts price controls on the premiums, the companies will simply have to go out of business. The plan will deliver higher costs, more hassles, fewer choices, less innovation, and less patient care.”

[Originally published at AAPS]

Categories: On the Blog

Lessons from the Great French Inflation

May 21, 2014, 11:32 AM

Governments have an insatiable appetite for the wealth of their subjects. When governments find it impossible to continue raising taxes or borrowing funds, they have invariably turned to printing paper money to finance their growing expenditures. The resulting inflations have often undermined the social fabric, ruined the economy, and sometimes brought revolution and tyranny in their wake. The political economy of the French Revolution is a tragic example of this.

Before the revolution of 1789, royal France was a textbook example of mercantilism, the eighteenth century system of government control and planning. Nothing was produced or sold, imported or exported, without government approval and regulation.

Everywhere the Controlling Hand of Government Regulation

How extensive and pervasive were these regulations of economic activity? The famous French social philosopher, Alexis de Tocqueville, described it in detail in his book, “The French Revolution and the Old Regime” (1856):

“The government had a hand in the management of all the cities in the kingdom, great and small. It was consulted on all subjects, and gave decided opinions on all; it even regulated festivals. It was the government that gave orders for public rejoicing, fireworks, and illuminations . . .

“You have neither Parliament, nor estates, nor governors; nothing but thirty masters of requests [i.e., the heads of the bureaucratic planning agencies in Paris], on whom, so far as the provinces are concerned, welfare, misery, plenty or want entirely depend . . .

“Under the old regime, as in our own day, neither city, nor borough, nor village, nor hamlet, however small, nor hospital, nor church, nor convent, nor college could exercise a free will in its private affairs, or administer its property, as it thought best. Then, as now, the administration was the guardian of the whole French people . . .

“A very extensive machinery was requisite before the government could know everything and manage everything in Paris. The amounts of documents filed were enormous, and the slowness with which public business was transacted was such that I have been unable to discover any case in which a village obtained permission to raise its church steeple or repair its presbytery in less than a year. Generally speaking, two or three years lapsed before such petitions were granted . . .

“Ministers are overloaded with business details. Everything is done by them or through them, and if their information be not coextensive with their power, they are forced to let their clerks act as they please, and become the real masters of the country [i.e., authority was delegated to a permanent bureaucracy] . . .

“A marked characteristic of the French government, even in those days, was the hatred it bore to everyone, whether noble or not, who presumed to meddle with public affairs without its knowledge. It took fright at the organization of the least public body that ventured to exist without permission. It was disturbed by the formation of free society. It could brook no association but such as it had arbitrarily formed, and over which it presided. In a word, it objected to people looking over their own concerns, and preferred general inertia to rivalry . . .

“Government having assumed the place of Providence, people naturally invoked its aid for their private wants. Heaps of petitions were received from persons who wanted their petty private ends served, always for the public good . . .

“Nobody expected to succeed in any enterprise unless the state helped them. Farmers, who, as a class, are generally stubborn and indocile, were led to believe that the backwardness of agriculture was due to the lack of advice and aid from government . . .

“Sad reading, this: Farmers begging to be reimbursed the value of lost cattle or horses; men in easy circumstances begging for a loan to enable them to work their land to more advantage; manufacturers begging for monopolies to crush out competition; businessmen confiding their pecuniary embarrassments to the intendant [the local bureaucrat], and begging for assistance or a loan. It would appear that the public funds were liable to be used in this way . . .

“France is nothing but Paris and a few distant provinces that Paris has not yet had time to swallow up.”

The Costly Extravagance of the King

While the French king’s government regulated economic affairs, the royal court consumed the national wealth. Louis XVI’s personal military guard numbered 9,050 soldiers; his civilian household numbered around 4,000—30 servants were required to serve the king his dinner, four of whom had the task of filling his glass with water or wine. He also had at his service 128 musicians, 75 religious officials, 48 doctors, and 198 persons to care for his body.

The nobility and the clergy were mostly exempt from paying taxes, so the tax burden fell on the “lower classes.” When Louis XVI assumed the throne in 1774, government expenditures were 399.2 million livres, with tax receipts only about 372 million livres, leaving a deficit of 27.2 million livres, or about 7 percent of spending. Loans and monetary expansion that year and in future years made up the difference. The accumulated debt of the royal French government was 2.5 billion livres.

In an attempt to put the government’s finances in order, in July 1774 the king appointed a brilliant economist, Anne-Robert-Jacques Turgot, to serve as finance minister. Turgot did all in his power to curb government spending and regulation. But every proposed reform increased the opposition from the privileged and the favored – politically connected business groups, power-lusting bureaucrats, the tax-exempt Church organization – and the king finally dismissed him in May 1776.

It was the chaos of the king’s finances that finally resulted in the calling into session of the Estates-General’s in early 1789, followed by the beginning of the French Revolution with the fall of the Bastille in Paris in July 1789. But the new revolutionary authorities were as extravagant in their spending as the king. Vast amounts were spent on public works to create jobs, and 17 million livres were given to the people of Paris in food subsidies.

French Revolutionary Paper Money Brings Disaster

On March 17, 1790, the revolutionary National Assembly voted to issue a new paper currency called the “assignat,” and in April, 400 million were put into circulation. Short of funds, the government issued another 800 million at the end of the summer. By late 1791, 1.5 billion assignats were circulating and its purchasing power had decreased 14 percent. In August 1793 the number of assignats had increased to almost 4.1 billion, with its value having depreciated 60 percent. In November 1795 the assignats numbered 19.7 billion, and by then its purchasing power had decreased 99 percent since first issued. In five years the money of revolutionary France had become worth less than the paper it was printed on.

The effects of this monetary collapse were fantastic. A huge debtor class was created with a vested interest in the inflation because depreciating assignats meant debtors repaid in increasingly worthless money. Others had speculated in land, often former Church properties the government had seized and sold off, and their fortunes were now tied to inflationary rises in land values. With money more worthless each day, pleasures of the moment took precedence over long-term planning and investment.

Heinrich von Sybel explained the social and psychological atmosphere of the time in his, “History of the French Revolution” (1882):

“None felt any confidence in the future in any respect; few dared to make business investment for any length of time, and it was accounted a folly to curtail the pleasures of the moment, to acquire or save for an uncertain future . . .

“Whoever possessed a handful of Assignats or silver coins, hastened to spend them in keen enjoyment, and the eager desire to catch at every passing pleasure filled each heart with pulsations, and were frequented with untiring zeal . . .

“The cabarets and cafes were no less filled that the theaters. Evening after evening every quarter of the city [Paris] resounded with music and dancing . . .

“The enjoyments, too, received a peculiar coloring – glaring lights and gloomy shadows – from the recollections and feelings of the Revolution . . .

“In other circles no one was received who had not lost a relative by the guillotine; the fashionable ball-dress imitated the cropped hair and the turned-back collar of those who were led to execution; gentlemen challenged their partners to the dance with a peculiar nod, intended to remind them of the fall of the severed head.”

Goods were hoarded—and thus became scarcer—because sellers expected higher prices tomorrow. Soap became so scarce that Parisian washerwomen demanded that any sellers who refused to sell their product for assignats should be put to death. In February 1793 mobs in Paris attacked more than 200 stores, looting everything from bread and coffee to sugar and clothing.

The first illusions of prosperity of rising prices from paper money creation soon turned to economic stagnation. As Andrew Dickson White explained in “Fiat Money Inflation in France” (1876):

“Under the universal doubt and discouragement, commerce and manufacturing were checked or destroyed. As a consequence, the demand for labor was stopped; laboring men were thrown out of employment, and under the operation of the simplest law of supply and demand, the price of labor – the daily wages of the laboring class – went down.”

Costs of Inflation Fall on the Weakest in Society

On who did the burden of the inflation mostly fall? The poorest. Financiers, merchants, and commodity speculators who normally participated in international trade often could protect themselves. They accumulated gold and silver and sent it abroad for safekeeping; they also invested in art and precious jewelry. Their speculative expertise enabled many of them to stay ahead of the inflation and to profit from currency fluctuations. The working class and the poor in general had neither the expertise nor the means to protect the little they had. They were the ones who ended up holding the billions of worthless assignats.

Finally, on December 22, 1795, the government decreed that the printing of the assignats should stop. Gold and silver transactions were permitted again after having been banned and were recognized as legally binding. On February 18, 1796, at 9 o’clock in the morning, the printing presses, plates, and paper used to make assignats were taken to the Place Vendôme and before a huge crowd of Parisians were broken and burned.

Price Controls Bring Even More Disaster to France

As the inflation grew worse, an outcry was heard from “the people” that prices must be prevented from rising. On May 4, 1793, the National Assembly imposed price controls on grain and specified that it could only be sold in public markets under the watchful eye of state inspectors, who were also given the authority to break into merchants’ private homes and confiscate hoarded grain and flour. Destruction of commodities under government regulation was made a capital offense.

In September 1793 the price controls were extended to all goods declared to be of “primary necessity.” Prices were prohibited from rising more than one-third from their level in 1790. And wages were placed under similar control in the spring of 1794. Nonetheless, commodities soon disappeared from the markets. Paris cafes found it impossible to obtain sugar; food supplies decreased as farmers refused to send their produce to the cities.

During the Jacobin Republic of 1792–1794 in revolutionary France, a swarm of regulators spread across France imposing price ceilings and intruding into every corner of people’s lives; they imposed death sentences, confiscated wealth and property, and sent men, women, and children to prison and slave labor. In the name of the war effort, after revolutionary France came into conflict with many of its neighbors, all industries in any way related to national defense or foreign trade were placed under the direct control of the state; prices, production, and distribution of all goods by private enterprises were under government command.

A huge bureaucracy emerged to manage all this, and that bureaucracy swallowed up increasing portions of the nation’s wealth.

The Collective Is Everything, the Individual Nothing

This all followed naturally from the premises of the Jacobin mind, which under the shadow of Jean-Jacques Rousseau’s notion of the “general will” argued that the state had the duty to impose a common purpose on everyone. The individual was nothing; the state was everything. The individual became the abstraction, and the state the reality.

Not even the family had autonomous existence in the new French collectivist society. As one of the leading French revolutionaries declared: “The principles that ought to guide parents are that children belong to the general family, to the Republic, before they belong to particular families. The spirit of private families must disappear when the great family calls. You are born for the Republic and not for the pride or the despotism of families.”

Those who did not see the “general will” would be taught; those who resisted the teaching would be commanded; and those who resisted the commands would perish, because only “enemies of the people” would oppose the collectivist Truth.

The End to the Controls and the Freeing of Prices

In late 1794 were the anti-Jacobin Thermidorians gained the upper hand in the government and brought the infamous French reign of terror to an end. At the same time advocates of a freer market were able to make their case.

One of them, M. Eschasseriaux, declared, “A system of economy is good . . . when the farmer, the manufacturer, and the trader enjoy the full liberty of their property, their production, and their industry.”

And his colleague, M. Thibaudeau, insisted, “I regard the Maximum [the price controls] as disastrous, as the source of all the misfortunes we have experienced. It has opened a career for thieves, covered France with a hoard of smugglers, and ruined honest men who respect the law . . . I know that when you violate commercial liberty you are subjected to great inconveniences. I know that when the government attempts to regulate everything, all is lost.”

Finally, on December 27, 1794, the price and wage controls were lifted, and market-based terms of trade were once again allowed. And following the end of the assignats a year later, goods once more flowed to the market and a degree of prosperity was restored—until Napoleon’s experiments in government planning when he shortly came to power in France.

In our own time, democratic majorities have replaced the absolute monarchs of that earlier period. But the thirst for power and plunder through political means remains the same. When taxes or borrowing are insufficient to cover all that government wants to spend, the handle of the monetary printing press is still turn, even if today it involves the simple click of the “mouse” that magically creates tens of billions of dollars or Euros on the computer screen of a central bank.

And it still carries with it the potential destabilization and destruction of the economic and social fabrics of society when let loose without limit and not stopped in time.

[Originally published at EpicTimes]

Categories: On the Blog

Obamacare Will Kill Far More Than the VA Scandal

May 21, 2014, 11:18 AM

The news that some forty veterans died whlle waiting to receive care from a Phoenix Veterans Affairs hospital—care that was denied because of bureaucratic chicanery—will seem small in comparison to the numbers of Americans who will die from the implications of Obamacare.

 
At this point, some nineteen VA hospitals are under suspicion of engaging in similar practices, but as large as the VA bureaucracy is, it will be small in comparison to what Obamacare requires. The original legislation that combined the Patient Protection and Affordable Care Act with the Health Care and Education Reconciliation Act represented nearly 2,700 pages.

 
The regulations that are being created to implement it will run to several volumes. By late 2013, the Obama administration had published 11,588,500 words of final Obamacare regulations. If looks can kill, that many words will surely kill. Too many people will be unble to get the care they need because there will be a regulation to prevent it.

 
What is making headlines now has long been known in other nations with national healthcare systems. It is about rationing, not dispensing care; if for no other reason that is why healthcare should remain in the private sector.

 

Unless a future Congress repeals Obamacare, the death toll will mount. There have been some forty or more pieces of legislation to repeal it passed in the Republican-controlled House of Representatives. No Republican voted for Obamacare when it was introduced.

 
What we know is that, while serving on the oversight committee, then-Senator Obama was aware of the VA problems before he ran for President. In 2009, as President, he promised veterans to fix the problems. How concerned is he in 2014? There has been a noticeable lack of public comment from a President famed for having something to say about everything that makes headlines.

 
Add the VA scandal to the long list of Obama administration scandals from the IRS to Benghazi, but it is Obamacare that has already been a monumental failure and, as we begin to receive news of those who will die as because a local hospital closed or because they lost the care of a personal physician familiar with their problem, it will emerge as the greatest scandal of his presidency.

 
On March 23, 2010 Congress passed the Affordable Care Act. By October, the Obama administration abandoned the long-term-care insurance program that was in the law. It was later formally repealed by Congress, but the changes that President has initiated since then ignore the fact that only Congress, as the legislative branch, has the power to make such changes.

 
December 2012 was the deadline for states to decide on running their own insurance exchanges; 36 states left all or part of the job to the federal government. In the lead up to the October 2013 launch of HealthCare.gov more delays were announced by the White House and the website turned out to be a complete disaster. That same month insurers notified thousands of policy holders that their health plans were not compliant with Obamacare and would be cancelled.

 
In effect, Obamacare caused hundreds of thousands of people with healthcare plans they liked to lose them, thus artificially increasing the number of “uninsured”. In April the White House announced that seven million had signed up for Obamacare. Kathleen Sebelius, Secretary of Health and Human Services, gave notice she was resigning. The figure cited by the White House is likely dubious.

 
In May, an article in The Fiscal Times reported that “A handful of state-run exchange websites—which cost nearly a half a billion dollars to build—still don’t work, nearly seven months after they first went live.” The Fiscal Times estimated that Obamacare websites had cost $5 billion and so many were not functional that the original plan to transition signups to them from HealthCare.gov was likely to be abandoned.

 
To mark the anniversary of Obamacare’s enactment, in March 2014 the American Action Forum released a report that the law’s regulatory burdens are twice as great as its alleged benefits. “From a regulatory perspective, the law has imposed more than $27.2 billion in total private sector costs, $8 billion in unfunded state burdens, and more than 159 million paperwork hours on local governments and affected entities.”

 

It’s rarely mentioned or reported, but the implementation of Obamacare will also require an increase in the number of people either full-time or under contract with the federal government. The highest estimate for new Internal Revenue Service hires is around 16,000 as the IRS has been put in charge of enforcing Obamacare. It already employs about 100,000 people nationwide which means there is one IRS employee for every 3,000 Americans.

 
In an April 4 Forbes magazine article, “Obamacare Shows America Suffers from a President Dangerously Disconnected From Reality”, Peter Ferrera, a Heartland Institute Senior Fellow specializing in entitlement and budget policy, concluded that the numbers of those insured by Obamacare were largely a fabrication or invalidated in some cases by data that the Health and Human Services Department released.

 
“Obamacare,” wrote Ferrera, “has been a major drag on the economy, preventing full recovery from the recession. Employers trying to avoid the costs of the employer mandate have reduced many full time jobs to part time jobs. Or that have frozen hiring, and the associated costs due to Obamacare. This is contributing to income stagnation and decline for the middle class, the working class, and the poor.”

 
L. Brent Bozell of the Media Research Center asked “How do we know Obamacare is failing? They’re burying the story. They aren’t in denial. They know the truth. They’re just choosing to ignore it.”

 
A Center analysis of the three network evening news broadcasts from January through March found only twelve full stories about Obamacare. “None of the networks dared to report the ongoing opposition of the American people to Obamacare” over that period of time, even when they were the ones doing the polling!

 
The real story of Obamacare, however, isn’t about who signed up or not. The real story of Obamacare that is not being reported is about those who have died and will die as the result of this horrendous experiment in socialized medicine.
© Alan Caruba, 2014

Categories: On the Blog

Top Ten Reasons Broadband Internet Is Not a Public Utility

May 21, 2014, 10:39 AM

Net neutrality activists succeeded last week in getting the FCC to officially consider ruling that private broadband companies should be price and profit regulated like public utilities in order to ensure maximal net neutrality.

As part of the FCC’s proposed Open Internet rulemaking, America will hear a debate over the next several months about whether the FCC should reclassify broadband as a Title II telephone monopoly service.

To make the issue more understandable to those interested, consider the top ten reasons why broadband should not be considered a natural monopoly warranting public utility regulation of profits, prices, terms and conditions.

Physics: The physics of broadband delivery facilitate competition while the physics of electricity, water and gas delivery facilitate monopoly. Electricity, water and gas can only be delivered in one basic physical manner unique to that service. In contrast, broadband can be delivered electrically over many kinds of metal wires, optically over fiber optic cables, and wirelessly in a wide variety of ways.

Digital: The simple binary ones and zeros of digital computer technology inherently enable many different technologies and physical mediums to interchangeability serve as broadband networks. Electricity, water and gas public utility networks are non-digital and inherently not interchangeable like broadband networks are.

Economics: Public utilities are based on single-use, high-capital-intensity, “natural monopoly” utility economics, where economies of scale and scope preclude the possibility of competitive facilities and services.  Being digital, broadband provider facilities inherently have dramatically better economics because of multi-use-facilities, service bundles, rapidly declining digital equipment costs, and lower capital-cost intensity via wireless.

Choice: Public utilities exist for services where consumers have no alternative or choice. However, in broadband Internet access, the vast majority of Americans have a diversity of choices of broadband technologies, providers, services and features; i.e. free WiFi or pay-for-service via cable modem, DSL, fiber, wireless, or satellite. Consumers can also choose between stationary, mobile or hybrid access services and select from a wide variety of speed and price offerings.

Competition: As one of the top-advertised services in America, consumers know they can get broadband from their local cable company, local phone company, four national wireless broadband companies (Verizon, AT&T, Sprint, & T-Mobile), and two national satellite companies.
Private Investment: Private investors have invested $1.2 trillion of long-term risk capital in competitive broadband facilities in the U.S. over the last decade under the assumptions that broadband is a competitive service with growth potential and no prospect of utility regulation. This massive and unparalleled infrastructure investment is incontrovertible economic evidence broadband service is not a “natural monopoly,” or likely to become one.

Change: Public utility services are characterized by standard uniformity and glacial rates of change. In contrast, competitive broadband services are characterized by diversity, differentiation, rapid-change, and continuous innovation.

Speed: Public utilities like electricity, water and gas, are designed to deliver a set and uniform delivery speed to everyone that is never expected to change. Competitive broadband networks are all about constantly improving the speed of delivery and offering the choice of differentiated speeds by price based on consumers’ ever-changing needs, wants and means.

Prioritization: Public electricity, water and gas utilities deliver uniform unchanging service that requires only availability management. In contrast, competitive broadband providers deliver variable, constantly changing service that requires ongoing reasonable network management. Broadband providers must filter unwanted, harmful or illegal traffic like spam, viruses, malware, bot-nets, denial-of-service-attacks, and other intrusions and infections. In addition, reasonable network management is needed to address congestion, and to deliver quality-of-service to ensure different types of traffic enjoy the necessary real-time delivery – no latency, jitter or buffering – and minimal down time or packet loss.

Common Carriage: Utility “common carrier” regulation is an obsolete form of network regulation in the U.S., and the Public Switched Telephone Network (PSTN) is the last common carrier utility regulated network industry. Less than a quarter of Americans still use the PSTN exclusively and it is in the process of being transitioned out of service in the next few years. Congress ended common carrier regulation for railroads in 1976, for trucking and bus lines in 1980, and airlines in 1984.

Broadband networks do not have any of the most relevant characteristics of public utility services.

Any fair and fact-based analysis by the FCC will confirm the statements above, and show that FCC reclassification of broadband as a common carrier-regulated utility is unnecessary, unwarranted, unwise and unfair.

Scott Cleland served as Deputy U.S. Coordinator for International Communications & Information Policy in the George H. W. Bush Administration. He is President of Precursor LLC, a research consultancy for Fortune 500 companies, and Chairman of NetCompetition, a pro-competition e-forum supported by broadband interests.

Categories: On the Blog

The Media’s One-Side-Fits-All Approach to Net Neutrality

May 20, 2014, 1:42 PM

What at times is worse than the Jurassic Press not covering something?  The Jurassic Press covering something.

The all-encompassing government-Internet-power-grab that is Network Neutrality rarely gets outside-the-Tech-World media attention.  But Thursday the Federal Communications Commission (FCC) voted in Democrat Party-line fashion to begin its process of imposing it.  This was a big enough deal that it garnered over-the-weekend Big Media coverage from ABC (with a Bloomberg assist) and PBS (with a Washington Post assist).

And it will shock you to learn that they only provided the pro-regulation side of the discussion – leaving out myriad essential points that are at cross-purposes with their government-growth efforts.

Their reporting was in fact so warped that – as huge as the FCC’s power grab is – there was palpable upset that the Commission didn’t go further.  And hope that it will increase its overreach as the process moves forward.

ABC’s This Week host (and former President Bill Clinton staffer) George Stephanopoulos first ran a Jeff Zeleny terribly mal-informed recorded piece.  In which the only person with whom Zeleny spoke was Tim Wu - the creator of Net Neutrality.  Wu was not identified as having done so – his opinion was merely taken at face value and presented unopposed.

PBS’s News Hour host (and author of a book effusively praising of President Barack Obama) Gwen Ifill read a brief, mildly awful introductory piece.

Then came the near mirror-image interviews – in that they both pushed the same inaccurate information about what the FCC’s power grab will mean.  Stephanopoulos spoke with Bloomberg Television anchor Cory Johnson - Ifill with Washington Post National Tech Reporter Cecilia Kang.

No one – questioners, answerers or or set piece reporters – ever mentioned that there have been no Net Neutrality regulations for the entire life of the Internet.  During which it has grown into the unbelievably dynamic, free speech-free market Xanadu we all know and love.

Had viewers been told this, they would unquestionably ask “If it ain’t broke – why is the perpetually-broken government trying to fix it?”

No one mentioned that the FCC has already twice tried to impose Net Neutrality – and twice had it unanimously thrown out by the D.C. Circuit Court as outside the bounds of their authority.

Court Backs Comcast Over FCC on ‘Net Neutrality’

Verizon Wins Net Neutrality Court Ruling Against FCC

Unquestionably viewers would look on the FCC even more dubiously if they knew this was their third totally unnecessary attempt at imposition.

Here’s some of what Kang and Johnson did decide to discuss.

Kang: What was approved today could change that structure, in that Internet service provides — that’s your telecom and cable company that provide the Internet into your home — can decide to charge Web sites for faster or premium delivery of content. And that means higher quality content.

Johnson: (T)his changes the future of — all of the stuff we do on the internet, whether it’s business, whether it’s personal interactions, watching movies on Netflix, all those things will be changed by this decision.

So much wrong to unpack here.

“Change” implies it wasn’t allowed before.  In fact Internet Service Providers (ISPs) have all along been allowed to charge huge bandwidth hogs like Netflix and Google for being huge bandwidth hogs – no Net Neutrality regs ever, remember?  Quite a few such deals have already been made or discussed.

Comcast and Netflix Reach Deal on Service

Streaming Brilliant: Netflix Signs Access Agreement with Verizon

ESPN in Negotiations with Verizon to Exempt its Content from Carrier’s Data Caps

It’s a basic economic precept – Use-More-Pay-More.

Netflix and (Google’s) YouTube Are the Internet’s Bandwidth Consumption Kings

(A) new study from broadband service company Sandvine…estimates YouTube and Netflix combine to account for just over half of all peak-hour download traffic in the United States and around 45% of all total traffic including uploads.

If the media had their way, government would mandate that gas stations charge the same for empty Escalades and Escorts.

More Kang and Johnson:

Kang: And what they (the Leftist protestors) were saying is, they don’t like the idea, again, of fast lanes on the Internet….

So the FCC can rewrite, re-tweak this idea, especially on fast lanes.

Johnson: And what this decision is trying to do is allow certain companies to have their own fast lane on the internet.

“Fast lanes” have not been – and will not be – created.  What the ISPs will do is move huge-bandwidth-consuming content – like Netflix and YouTube videos – closer to the off-ramps from the Information Superhighway to your home.

No other content gets any slower.  In fact it’ll likely get faster – by getting these bandwidth beasts out of the way.  Imagine taking all the 18-wheelers off the highways – would that not improve traffic for the rest of us?

We do know that without these deals everyone will pay much more for Internet service.  Because the government will force all of us to pay the huge bandwidth costs of Netflix and Google.  Thereby subsidizing the profits of Netflix and Google.  Crony Socialism, anyone?

Google And Netflix Are Considering An All-Out PR Blitz Against The FCC’s Net Neutrality Plan

Shocker.

There was much more media wrongness and omission – but you by now get the gist.

Neither ABC-Bloomberg nor PBS-Washington Post were interested in accurately reporting the FCC’s Net Neutrality power grab.

They were instead working on getting it done – and in fact expanding it.

[Originally published at NewsBusters]

Categories: On the Blog

Renewable Energy Subsidies Cost Taxpayers — How Does Your State Fare?

May 20, 2014, 11:09 AM

EUCI, an industry leader in conferences, seminars, and short courses for the energy industry is hosting a two-day course on “An In-Depth Tax Planning for Renewable Energy Projects”.

The course is June 9-10, 2014 in San Diego, California.  Course overview is, “This course is designed to give investors, users, developers, and their advisers an in-depth understanding of the tax issues involved in the development and structure of renewable energy projects.”

Rewards of tax dollars for the renewable energy industry are so great it takes tax experts days of explanations to locate all possibilities.  Additional subsidies are available from the federal government in forms of tax credits, loan guarantees, grants, and possible mandates for energy source use.

To add to lucrative federal renewable energy subsidies, many states add to the list and make costs of some projects approach zero.  These subsidies are in the form of tax credits, tax benefits, loans, mandates for energy use (called renewable portfolio standards -RPS), and buybacks of excess electricity produced by renewable systems by local utilities (called net metering).  State subsidies are given by the Database of State Incentives for Renewables & Efficiency (DSIRE).

In August 2013, Ernst & Young published their report “United States Renewable Attractiveness Index Energy” that lists the top 25 states for renewable energy.  Factors applied in the listing are All Renewables Index, Individual Technology Index, Renewable Structure Index, and Infrastructure Index.  The All Renewables Index is scored by Long-term wind index–45%, Long-term Solar index–45%, Biomass index–5%, and Geothermal–5%.

For the Long-term Solar Index, California has a commanding lead over all states followed by Hawaii and Nevada in second and third place.  New Mexico, Colorado, Texas and Arizona round out the top seven with the Southwest the strong market for utility-scale solar developments.

The losers over these subsidies are taxpayers with higher taxes or obligations to pay increased debt and electricity rate payers with higher electricity prices.  California has the highest renewable energy portfolio of 33 percent electricity generated by renewables by 2020.  For February 2014, the CA residential electricity rate is 16.18 cents per kilowatt-hour versus the national average of 11.88 cents per kilowatt-hour—a 36 percent increase.  Georgia which presently has no requirement for renewable energy has a residential rate of 10.89 cents per kilowatt-hour.

It is hard to estimate costs of renewable energy subsidies.  Breitbart wrote in December 2013 renewable energy subsidies since 1973 were $154 billion.  I suspect this figure is direct payments from the federal government and does not include subsidies from state governments or assistance from federal and state tax codes.  Annual subsidies today have to exceed $10 billion.  Renewable energy subsidies support President Obama’s Climate Action Plan to curtail fossil fuel use and replace it with renewable energy sources.

To give an example of state renewable energy subsidies, Georgia is examined.

GEORGIA’S WATERMELONS

Georgia being a Southern agriculture state, it is hard to resist calling their renewable energy subsidies watermelons—green on the outside and red from bleeding red ink on the inside.

As a Republican state, DSIRE gives a long list of subsidies available to residential and commercial energy users.  Particularly attractive are tax credits for solar energy and alternative-fueled vehicles—tax credits are limited to $5 million per year per category for both residential and commercial ventures.  In addition, Georgia gave a $6.2 million grant to Range Fuels for cellulosic ethanol (company bankrupted in 2012) and $10,000 grants to filling stations for dedicating one pump for E-85 for three years.  The latter subsidy was found from interviews of managers of two Atlanta filling stations carrying E-85 in 2011.

The Georgia Public Service Commission (GAPSC) had no problems promoting use of solar energy in Georgia.  On July 11, 2013, GAPSC implemented a renewable portfolio standard for Georgia by requiring Georgia Power Co. to buy 525 Megawatts of new solar energy by the end of 2016.  As a reward for this mandate, the Georgia Solar Energy Association awarded GAPSC its annual solar advocacy award shown by three smiling commissioners accepting their plaques.    It should be noted Georgia is not on the Ernst & Young list of top 25 states for renewable energy use.

Also add Georgia’s government is mute through agencies like GAPSC to EPA’s Proposed CO2 Rule for New Power Plants  that allow no future coal plant construction.  On May 26, 2011, the EPA had public hearings in Atlanta on proposed rules on mercury abatement.  This was followed by public hearings on reducing carbon dioxide pollution from new power plants October 23, 2013.  Representing The Heartland Institute, I gave both written and verbal testimony against EPA’s proposed rulings at the May 26 and October 23 public hearings.  No one from GAPSC testified at these public hearing even though their offices are within walking distance.  Silence on President Obama’s attempts to eliminate fossil fuels for electricity generation by Georgia’s officials can be interpreted as acquiescence.  Commissioner Echols did testify in Washington EPA should allow Georgia greater flexibility in enforcing EPA rules.

Georgia has joined Common Core for k-12 education whose science portion is shown corrupted by climate change propaganda.  Unless Common Core is abandoned or modified, Georgia’s children will be trained as advocates for President Obama’s climate action plan.

All these items make a good case Georgia is quite supportive of Obama Administration’s efforts to eliminate fossil fuel use and make substitutions of more expensive, unreliable renewable energy sources.  President Obama could ask for no better support for his policies unless one traveled to strong Democrat states.

WHAT ABOUT OTHER STATES?

DSIRE can be used to gather information on financial incentives supporting renewable energy programs of the Obama Administration.  Other means of support by supporting Common Core or failure to make stands in favor of the Keystone XL pipeline and opposing EPA’s onerous air pollution rules to strike down fossil fuel use can be interpreted as support for President Obama’s energy policies.  Other programs to inhibit economic progress are edicts from government agencies to stop oil and natural gas production, logging, and mining on government lands.  Silence can be interpreted as agreement.

An important national election takes place this fall and voters should assess their candidates to determine if they support energy policies that exploit the nation’s abundance of coal, oil, and natural gas.  Policies to curtail fossil fuel use and replace them with renewable energy sources will keep the nation on a road to economic decline that has been displayed the past half dozen years.

Smart votes need to be cast.

James H. Rust,  Professor of nuclear engineering and policy advisor The Heartland Institute

Categories: On the Blog

Time to get Real About Climate Change

May 20, 2014, 11:01 AM

We hear it over and over, “Climate change is real. Only industry-funded ‘deniers’ disagree.”

This is ridiculous.

 No scientist denies that climate changes. Geology professor Tim Patterson of Carleton University explains, “Climate is and always has been variable. The only constant about climate is change; it changes continually.” Scientists like Patterson deny that they deny climate change—they are denial deniers.

If anyone could rationally be labeled climate change deniers, it is those who hold the absurd view that our climate was relatively tranquil until the arrival of humans. They seem to not know that half of North America was under a vast ice sheet only 22,000 years ago. And, as Patterson has written, “Ten thousand years ago… temperatures rose as much as 6 degrees Celsius in a decade — 100 times faster than the past century’s 0.6 degrees Celsius warming.”

The deniers label is an attempt to equate those who question political correctness on climate to Holocaust deniers. It is designed to frighten dissenters into silence. Besides having no place in civilized discourse, it is a fundamental error in reasoning, an “ad hominem” logical fallacy — against the man, instead of the idea.

Ad hominem attacks are only one of the fallacies poisoning the climate debate. Campaigners regularly use guilt by association, straw man arguments and appeals to emotion, motive and authority to divert the public from considering the arguments of skeptics. Dr. Tim Ball, former climatology professor at the University of Winnipeg, has even received death threats for his outspoken candor. Ball remarks, “I didn’t choose to be a climate skeptic for my health.”

So rather than become embroiled in such unpleasantness, many of the world’s leading climate experts stay out of the public debate, a serious loss to societies grappling with this important issue.

Professor Lennart Bengtsson, a leading Swedish climate scientist and research fellow at the University of Reading, is a case in point. After defecting from the climate alarmist camp and, two weeks ago, joining the advisory council of Britain’s Global Warming Policy Foundation (GWPF), a think tank of climate change skeptics, Bengtsson quickly decided to quit the group. In his resignation letter, he explained, “I have been put under such an enormous group pressure in recent days from all over the world that has become virtually unbearable to me. If this is going to continue I will be unable to conduct my normal work and will even start to worry about my health and safety.”

The idea that there is a consensus among experts that we face a human-caused climate crisis is unfounded. There has never been a reputable worldwide poll of climate scientists that demonstrates that a majority of them believe that our carbon dioxide emissions cause dangerous climate change. Australia-based climate data analyst John McLean has demonstrated that, even among the thousands of scientists who worked on the United Nations Intergovernmental Panel on Climate Change (IPCC) assessment reports, only a few dozen of them actually commented on the issue, and some of those disagreed with the view that activists attribute to all of them.

Statements by national science academies are equally unsubstantiated. Not a single national science body that officially supports the climate scare has demonstrated that a majority of their scientist members actually agree with their academy’s position. Their statements are simply the politically expedient opinions of the groups’ executives, or small committees appointed by the executives.

The lack of any known consensus is not surprising. Dr. Chris Essex, professor of applied mathematics at The University of Western Ontario explains, “Climate is one of the most challenging open problems in modern science. Some knowledgeable scientists believe that the climate problem can never be solved.”

Not only are today’s computerized climate models (the basis of the alarm) not known to represent climate properly, they cannot be programmed to do so because we do not know the underlying science well enough to know what to program the computers to compute. Yet, on this basis, the developed world is revamping its entire energy infrastructure.

The most comprehensive reports about the current state of climate science are those of the Nongovernmental International Panel on Climate Change (NIPCC). Citing thousands of peer-reviewed scientific references published in the world’s leading science journals, NIPCC reports show clearly that today’s climate is not unusual and the evidence for future climate calamity is weak. Yet, fearing angry backlash from climate campaigners, governments worldwide ignore the NIPCC, choosing instead to base policy only on the IPCC.

Our leaders must seek input from all reputable experts, regardless of their scientific opinion. Considering what’s at stake — a human-induced eco-collapse if alarmists are correct, or, if skeptics are right, a waste of trillions of dollars and a loss of millions of jobs — no other approach is acceptable.

[Originally published at The Garden Island]

Categories: On the Blog

Thorner: Chilling Truth Behind Common Core State Standards

May 20, 2014, 10:57 AM

On Tuesday, May 13, the Northern Illinois Patriots , President Greg Clements, sponsored Dr.  Duke Pesta, Freedom Project Education Academy Director — an online school offering a complete classical education for students from Kindergarten through High School, free from public school spin and Common Core indoctrination — as its featured speaker at Austin’s Saloon and Eatery, 481 Peterson Road in Libertyville. Dr. Pesta’s topic:  “Common Core:  Dangers and Threats.”

As a teacher himself, Dr. Pesta is not anti-teacher despite his negative opinion of Common Core.  If truth be told, many teachers oppose Common Core but are told to keep quiet or lose their jobs.  Pesta received his MA in Renaissance literature from John Carroll University and his Ph.D. in Shakespeare and Renaissance literature from Purdue University.

He has taught at major research institutions and small liberal arts colleges, and has been active in education reform, developing and implementing an elective Bible course that is currently available for public high school students in Texas. Currently he is a professor of English at the University of Wisconsin, Oshkosh in addition to his role as Academic Director of Freedom Project Education.

The chilling truth behind the new national standards are sure to terrify you, as they did to those who attended the Northern Illinois Patriots event.  A question Dr Pesta asks at the beginning of each of his events is how many are familiar with Common Core?  As is the case most often, 90 to 95% are still foggy about the nature of Common Core.

Dr. Duke Pesta, using research done by others, presented Common Core as the drive it is toward complete government control of our children’s education through a series a slides and commentary titled,  “Common Core:  Dangers and Threats.”   Dr. Pesta considers Common Core a hugely bi-partisan problem. In Wisconsin Republicans refused to allow a vote to be held on Common Core legislation.  Nationally, Jeb Bush and Chris Christy are in total support of Common Core, as is the U.S. Chamber of Commerce.

Dr. Duke Pesta divided his presentation into three parts

Part 1:  How did Common Core come about?   ​a Research Fellow in Education at the Heartland Institute

Common Core State Standards (CCSS) implies that that all states were consulted before they signed on to Common Core, as though it were a democratic thing instead of Banana Republic tactics. Not so!  Joy Pullman, a Research Fellow in Education at the Heartland Institute, traces the writing of Common Core back to five individuals.  One of its writers, David Coleman is considered the chief architect of Common Core. According to Dr. Pesta, Coleman is not qualified to write on any subject. Worrisome is that Coleman has since moved on to become president of the College Board where he will integrate the AP assessments with Common Core standards.

Hence, the curriculum was written by a small group of individuals and then copyrighted by two Washington lobbyists group, making it devoid of any government ownership. This is important because the 1965 Elementary and Secondary Education Acts was the first federal attempt to regulate and finance schools. In 1979 the law that created the Department of Education forbids it to exercise “any direction, supervision, or control over the curriculum” or “program of instruction” of any school system.  The mechanism of control were the tests all students had to take to be written by the people who created Common Core. To pass the tests, the Common Core curriculum had to be taught. The Bill and Melinda Gates Foundation donated $170 million to support the creation and implementation of Common Core State Standards. To date they have contributed $2.5 billion.

But there is no way Common Core could have been brought into the nation’s schools given that it was the product of a small group of activists supported by billionaire Bill Gates.  As background, in 2001, President G.W. Bush came up with “No Child Left Behind” which he gave over to Senator Ted Kennedy to write.  “No Child Left Behind” was a disaster from the beginning as it was based on “outcome” education, which is akin to socialism.  Every single child was expected to meet the same arbitrary standard through high stakes testing.

Fast forward to 2009. President Obama is now in office. It was in 2009 that President Obama took $5.1 billion of taxpayer money and offered it to states to sign on to his “Race to the Top” program.  The catch:  If states accepted “Race to the Top” money they had to accept Common Core State Standards (CSSS) sight unseen.   Additionally, a waiver was granted to states so they could opt out of Bush’s “No Child Left Behind” program if they signed on to Obama’s” Race to the Top” program.

Forty-four states agreed to trade their K-12 math and English targets and tests for those of the Common Core’s State Standards yet to be written. Now that CC is in place, in some states longer than others, Dr. Pesta looks upon Common Core as “No Child Left Behind of steroids.” He also refers to Common Core as a social justice curriculum that comes before the ABC’s.  Remaining at its core is a one-size fits all definition of education.  But what if the high standards can’t be met?  It becomes obvious that the only way to get more children to the same place is in time to lower standards.

Part 2:  Nature of Common Core Curriculum

Although it is often said that Common Core is not a curriculum but a set of standards, Common Core standards are being put into textbooks which then become curriculum.  Pierson, as the largest education product sales company on earth, has a monopoly on education products, including textbooks.  This month Bill Gates — the second richest man on earth who almost single-handedly funded and marketed the entire Common Core movement going back to UNESCO and its goal to bring a master curriculum worldwide — has joined forces with Piersen to create a one size fits all curriculum.  Although it is claimed that states can deviate 15% from what is being taught in other states, if this were true there would have to be a different test for each state.

Dr. James Milgram, professor of mathematics at Stanford University, and Dr. Sandra Stotsky, professor emerita at the University of Arkansas and former Senior Associate Commissioner of the Massachusetts Department of Education, as members of the Common Core Validation Review Panel were the only experts on the panel in their subject area.  Both Milgram a math expert and Stotsky an English expert refused to give Common Core Math and English standards, respectively, a good recommendation as did the rest of the panel.  Both have gone on to testify with a warning voice to state legislatures and school boards about the inadequacy of the standards.

Hear Dr. Milgram talk about “What happened to Math education and why Common Core won’t help.”

James Mlgram points out these flaws of the new Core Curriculum math standards:
•By the end of fifth grade the material being covered in arithmetic and algebra in Core Standards is more than a year behind the early grade expectations in most high achieving countries.  By the end of seventh grade Core Standards are roughly two years behind.
•Core Mathematics Standards are written to reflect very low expectations and do not reflect the mathematics education that underlie the results in the high achieving countries.  The explicitly stated objective is to prepare students not to have to take remedial mathematics courses at a typical community college.

Common Core applies a never before seen methodology in the way common math problems are solved.  Parents can no longer help their children with simple addition and subtraction not understanding the system. Staking of numbers is no longer permitted, instead children must draw dots, circles, squares, etc., to come up with the answer.

Dr. Pesta used as a demonstration a Champion News video of a Grayslake D46 Curriculum Coordinator relating how under the new Common Core math system if a child determines that 3 + 4 is 11, that’s perfectly fine if the child is able to explain how he arrived at the answer. Even if a child can do math beyond his grade level, he must stay put and not try to move to a higher level.

Dr. Sandra Stotsky has come to refer to Common Core standards as propaganda.  Hear Dr. Sandra Stotsky describe “What are the major problems with Common Core English Standards?”

Dr. Stotsky’s concerns about Common Core can be read here.
•Common Core is a step backwards for English Standards.  The architects of Common Core’s English Language Arts standards never claimed that their standards would do so; rather, they claimed the standards would make all students “college-ready,”
•Common Core English standards require English teachers to emphasize skills, not literary or cultural knowledge, such as how and why individuals, events, and ideas develop and interact over the course of a text at all grade levels, which may lead to a decreased capacity for analytical thinking.
•Common Core standards require English teachers to teach “informational” texts over 50% of their reading instructional time rather than literary texts.  There are, however, 30 book sexually unfit for high school kids to read on the Common Core approved reading list, one such book for the 11th grade: The Bluest Eye.
•Writing is emphasized more than reading, but kids only learn to write well after they can read well.  When writing they will most likely write what they read in their textbooks such as the global warming, threat, ways to save the planet, or a denial of American exceptionalism.

Categories: On the Blog

The Liberty and Energy Connection

May 19, 2014, 2:26 PM

Following my appearance on the Daily Show, I’ve received emails and phone calls from people who don’t agree with my views about energy and the advantages America’s energy abundance provides—benefits that drive both progress and prosperity.

Some of the emails can’t be read in polite company, but one that can asked: “Please explain how energy from mountain top removal, fracking, and tar sands makes America great.” The word choices Greg selected tell me that he isn’t truly seeking enlightenment and is instead aiming to antagonize me. The next day, he sent another: “I have yet to hear back on this simple question. Please respond.” It does seem like a simple question. One I should be able to answer in an instant. But I didn’t want to offer platitudes. I felt the question deserved a thoughtful answer. So, Greg, here you are.

I’ve spent the past couple of days at a conference on “Energy, Economics and Liberty.” There discussions took place on the energy debate, government’s role, market solutions, and the geo-politics of energy. About twenty men—all experts in various aspects of energy—attended. I wasn’t just the only female I was the only energy advocate. The topics brought Greg’s request to mind and the conversations helped form the answers.

One of the participants, Jim Clarkson, wrote an article titled: “The Shale Gas Paradigm,” in which he states: “Increased access to energy is a key to economic progress in the undeveloped world.” Similarly, in my book, Energy Freedom, I quote Robert Bryce, author of Power Hungry, who says: “Electricity is the energy commodity that separates the developed countries from the rest. Countries that can provide cheap and reliable electric power to their citizens can grow their economies and create wealth. Those who can’t, can’t.”

Senate Major Leader Harry Reid (D-NV) once said: “Oil and gas are making us sick.” But I contend that they—along with coal—are the very things keeping us well. In Energy Freedom’s introduction, I point out: “Energy saves lives. When fire strikes or hurricanes are bearing down upon a city, it is energy—in this case in the form of gasoline—that allows people to drive away and escape death. … When weather is extreme, it is energy—usually in the form of electricity (most frequently from coal or natural gas)—that keeps people alive. Air conditioning allows people to live in comfort in Arizona in the summer. Heating keeps people from freezing to death in Alaska in the winter. Energy keeps us well. Energy makes us comfortable.”

The Energy, Economics and Liberty conference was hosted by the Liberty Fund. On its website, it offers this definition of liberty: “the beginning and the source of happiness from which all beneficial things flow in return.” Much like liberty, energy is the source from which many beneficial things flow. Energy has been a source of America’s freedom, a big part of what has made America great.

The conflicts in Ukraine have made the importance of energy freedom clear. Because of being on the Daily Show talking about fracking, I’ve been given other opportunities to address the topic. One was with former Minnesota Governor Jesse Ventura for his show Off the Grid. At the end of the twenty-minute interview, he asked me for closing comments. I said something like: “Because of fracking, OPEC would never be able to use energy as a weapon as it did to America in 1973 and as we see Russia doing to Ukraine today.”

Greg’s email to me used terms that lead to three different energy sources: coal, natural gas, and oil—and each have been big contributors to America’s progress and prosperity. Each has made the personal lives of Americans more pleasant and less painful. Together these energy sources have made America energy secure.

The email used the term “mountain top removal,” which is a method by which coal can be mined. It is safer than underground mines because it removes the risk of mine accidents, the horror of which we’ve recently witnessed in Turkey. (Note: America has far more stringent mining regulations today than does most of the world.) Greg likely selected the term “mountain top removal” because it sounds harsh. In fact, in the mountainous regions of Eastern Kentucky and West Virginia, this surface mining process allows for hospitals, housing developments, shopping centers to be built—all which bring more economic development and much needed jobs.

I’ve toured regions where “mountain top removal” is being done and stood on top of the massive coal seam. The procedure is amazing. Picture the region like lots of upside down ice cream cones next to each other. Hills and valleys—but no place to create a community. In that mountain is a thick layer of coal that goes all the way through the mountain, north to south, east to west. To access it, the dirt, the tip of the ice cream cone, is taken off and the coal is removed.

In the past, when the coal had been extracted, a private landowner could ask the mining company to level out the land—making it economically productive. However, today’s regulations take away that property owner’s rights and require that the mountain be rebuilt and put back to its original condition. If the landowner wants to turn his land into a housing development, he then has to incur the expense of, once again, removing the peak and leveling the land.

The coal provides, and has provided, America with low-cost, base-load electricity—which, as we’ve already addressed, has given us a competitive advantage in the global marketplace and unmatched personal progress. And, therefore, energy from mountain top removal makes America Great.

Fracking—short for hydraulic fracturing—combined with the amazing technology of horizontal drilling, has brought America into a new era of energy abundance. Clarkson states: “Gas using industries are expanding while we enjoy a distinct advantage over the rest of the world.” He explains: “Shale gas lay worthless beneath the earth’s surface for the whole of man’s previous existence until human intelligence made it valuable”—and that was done with fracking.

One of the definitions of liberty found at Dictionary.com is: “freedom from arbitrary or despotic government or control.” Clarkson points out: “There were no federal programs with subsidies, tax breaks, and mandated markets to favor the shale industry. …The new shale order of things is a triumph of free enterprise over government planning. The shale revolution shows that the good old American know-how and individual initiative that made this country great have survived the burden of big government and can still create economic miracles.” Clarkson closes with: “Some observers are already calling this the century of natural gas. This could also be the century of prosperity, free markets, and optimism as America regains its energy mojo.”

Unlike the pariah Greg presumes fracking to be, it is responsible for the shale gas phenomena.

Last, Greg asked about tar sands and how they make America great. Tar sands, or oil sands, allow America to get oil from our friendly Canadian neighbor and reduce our need to import OPEC’s oil. We then refine that oil into gasoline, diesel, and jet fuel that fuels our transportation fleet—something that wind and solar power cannot do.

I have been to the oil sands of Canada and what they are doing there is, like fracking and horizontal drilling, a technological miracle.

If you have ever walked on a California beach and stepped on a tar ball (created when the oil seeps out of the ground and is washed ashore mixed with sand), you have a clue what the tar sands are like. The naturally occurring tar sands are a layer in the earth (much like coal). This layer has raw crude oil mixed with the dirt/sands. I recall driving to the tar sands from the town where we stayed. As the elevation increased, I noticed that trees reached a certain height and then died. It was explained that as soon as the roots hit the bitumen (or tar) it kills the tree.

At the extraction site, the tar sands are bulldozed and dumped into giant trucks (much like surface coal mining). The tar and sand mixture is processed to separate the oil and the sand. (Think of taking that tar ball from the beach and boiling it. The oil melts and floats while the sand drops to the bottom.) The oil is now available for use and the clean sand is put back into the earth—only now the trees can actually grow. The reclaimed land is teeming with wildlife that lives in the healthy forest the extraction process provides. As a result, when the Keystone pipeline is approved, America would be far less dependent on people who aim to do us harm and OPEC couldn’t cause an instant recession as it did in 1973. Plus, Keystone will be safer and cheaper—not to mention creating more jobs—than shipping the oil via rail as we are currently doing.

And that, Greg, is how tar sands can make America greater.

Yes, mountain top removal—or coal; fracking—or natural gas; and tar sands—or oil, make America great. The use of natural resources are a part of liberty: “freedom from control, interference, obligation, restriction, hampering conditions, etc.; power or right of doing, thinking, speaking, etc., according to choice.”

People like Greg want to interfere, restrict, and hamper North America’s energy abundance—which will take away America’s ability to provide cheap and reliable power to her citizens and take away the ability to grow the economy and create wealth. Why would anyone want to do that?

 The author of Energy Freedom, Marita Noon serves as the executive director for Energy Makes America Great Inc. and the companion educational organization, the Citizens’ Alliance for Responsible Energy (CARE). Together they work to educate the public and influence policy makers regarding energy, its role in freedom, and the American way of life. Combining energy, news, politics, and, the environment through public events, speaking engagements, and media, the organizations’ combined efforts serve as America’s voice for energy.

[Originally published at RedState]

Categories: On the Blog

Time for the States to Take Back Their Land from the Feds

May 19, 2014, 11:06 AM

According to a 2012 report by the Federal Research Service, “The federal government owns roughly 635-640 million acres, 28% of the 2.27 billion acres of land in the United States.

Four agencies administer 609 million acres of this land: the Forest Service (USFS) in the Department of Agriculture, and the National Park Service (NPS), Bureau of Land Management (BLM), and Fish and Wildlife Service (FWS), all in the Department of the Interior (DOI). Most of these lands are in the West and Alaska. In addition, the Department of Defense administers 19 million acres in military bases, training ranges, and more. Numerous other agencies administer the remaining federal acreage.”

I suspect it may come as a surprise to many people that the federal government owns just over a quarter of the nation’s landmass and, other than land set aside for military bases and naval ports that may seem excessive. It is.

The drama that ensured when the Bureau of Land Management lay siege to the Nevada Bundy ranch over unpaid grazing fees called into attention the fact that the BLM oversees, according to a recent article in the National Review, “the largest piece of leasable real estate in the American West—245 million acres, an area bigger than the mid-Atlantic states and New England combined. The BLM is its landlord.”

In theory one can apply for a license or lease “to make productive use of this land” noted Travis Kavulla in his article, “Public-Land Colonialism.”  In practice “The National Environmental Policy Act of 1969 requires an excruciatingly complex process before even mundane land-use decisions can be made.” It is a regulatory nightmare for anyone who might want to create a mine to access coal or valuable minerals or extract oil or natural gas.

The process is subject to government policies, spoken or unspoken, to restrict access. A current case involves actions by the Environmental Protection Agency to stop the creation of the Pebble Mine project in Alaska even before a permit is requested. A May 12 Wall Street Journal editorial noted that “The EPA’s inspector general’s office last week announced it will investigate the agency’s February decision to commence a preemptive veto of the Pebble Mine project, a job-rich proposal to develop America’s largest U.S. copper and gold mine in southwest Alaska.”

The Obama administration has been devoted to stopping all kinds of projects that might generate jobs and revenue from projects like the Pebble Mine. Its opposition to the building of the Keystone XL pipeline is the best known example, but the EPA’s “war on coal” has closed many mines in addition to coal-fired plants needed to provide electricity.

The EPA is requesting jurisdiction over all public and private streams in the nation and this has been called “the largest land grab in the history of the world.”  So it is not just public lands that are affected, but private lands as well.

In an article on World Net Daily, Alana Cook pointed out that “The proposed rule tinkers with the definition of ‘navigable’ waters which was the central point of litigation in a battle between the Supreme Court and the EPA regarding the Clean Water Act.” The proposal would “allow the EPA in conjunction with the Bureau of Land Management, the Department of Energy and the Army (Corps of Engineers) to dictate on a never-before-seen scale everything from grazing rights, food production, animal health and the use of energy on private lands.”

This is, simply stated, Communism in which the government owns all the land.

As Craig Rucker, Executive Director of the Committee for a Constructive Tomorrow (CFACT) points out, “There is no engine on Earth as powerful at creating prosperity and improving the condition of both man and nature than free markets. There can be no free market without the right to property.” He warns that “Property rights are under siege.”

One of the BLM’s reasons cited for its actions against the Bundy ranch involved “endangered animals” and Rucker said, “Take away a person’s right to choose how to use their land and in effect you’ve seized that land.” The attack on private land ownership is led by the United Nations Agenda 21.

The government’s control over public lands and its grasp for control of the use of all private lands reflects the Marxist agenda of the Obama administration. It is so manifest that, in mid-April, officials from nine states got together in Salt Lake City to discuss ways to retake control of poorly managed federal lands.

There are federal laws that have been on the books a very long time that are intended to protect private property from the actions we have seen by the BLM and the EPA. One is the Federal Land Policy and Management Act of 1976, so this issue has been around awhile, but what is generally unknown is how vast federal control is.

In his National Review article, Kavulla noted that “In Montana, one county that is a traditional center of natural gas production has a whopping 53 percent of its subsurface minerals controlled by the BLM. Proposed resource management plans (RPM) in Montana “more than quadruple the land off-limits to ‘surface occupancy’ which makes oil and gas drilling virtually impossible. Only about one million acres of a ten million acre federal estate would be open to drilling activities under standard leasing conditions.”

America is under attack from within by federal government agencies that are striving to deny access to the greatest energy reserves in the world and to control the lives of ranchers and farmers whose work feed the rest of us.

It is time for the states to take back their land from the federal government and to oversee its use for the development of the economy, the security of the nation, and the protection of private property, the keystone of capitalism.

[Originally published at Warning Signs]

Categories: On the Blog

Thorner: Kibbe’s key to Liberty – “Don’t Hurt People and Don’t Take Their Stuff”

May 19, 2014, 10:52 AM

FreedomWorks’ CEO Matt Kibbe’s new book Don’t Hurt People and Don’t Take Their Stuff was the topic of discussion Tuesday at Heartland Institute, and due to flight delays and re-direction the author himself had to reschedule his presentation for Wednesday. However, having read Kibbe’s book Joe Bast, CEO of the Heartland Institute, and Jim Lakely, ably filled in for Kibbe’s absence in a discussion about liberty.

Joe Bast described Kibbe as a full-fledged, hard core libertarian, who, as his book reveals, came to his libertarianism through the music of Rush. The title of the first cd Kibbe bought was “2112″ in 1977 when he was only 13.  Thereafter, Kibbe became obsessed with the music of Rush. Two songs that intrigued and inspired Kibbe on “2112″  were, “You don’t get something for nothing” and “You can’t buy freedom for free.”

Bast then went on to describe, as set forth in Chapter 8 of his book, Kibbe’s twelve-step policy agenda to promote positive, innovative ideas that would improve people’s lives by letting them be free, by spending less of your hard-earned money on someone else’s favors, by letting you choose, and by treating us all equally under the laws of the land.  Such ideas might be considered radical stuff to some!  Bast described the twelve steps as “a quick agenda for what conservatives and libertarians want to achieve.”

  1. Comply With The Laws You Pass.
  2. Stop Spending Money We Don’t Have.
  3. Scrap The Tax Code.
  4. Put Patients In Charge.
  5. Choice, Not Conscription. 
  6. End Insider Bailouts.
  7. Let Parents Decide best educational needs for their children.
  8. Respect My Privacy without fear of government snooping.
  9. End The Fed Monopoly with its lack of supervision or oversight. 
  10. Avoid Entangling Alliances.
  11. Don’t Take People’s Stuff.
  12. Defend Your Right To Know.

Joseph Bast thereafter invited Jim Lakely into the discussion by inquiring, “Jim, What do you think?”

Lakely let it be known that Rush didn’t influence his political conservative leanings, although as a drummer in his youth he was familiar with the music of Rush. Jim Lakely rightly chose to speak about Matt Kibbe’s’ six “Rules for Liberty” as set forth in Kibbe’s book, for according to Kibbe, “Everyone should be free to live their lives as they think best, free from meddling by politicians and government bureaucrats, as long as they don’t hurt other people, or take other people’s stuff. . . These rules don’t permit gray-suit middlemen to rearrange things for your special benefit, or against your personal preferences arbitrarily.”

  1. Don’t Hurt People.
  2. Don’t Take People’s Stuff.
  3. Take Responsibility.
  4. Work For It.
  5. Mind Your Own Business.
  6. Fight The Power.  (As Lord Acton warned:  “Power tends to corrupt” and “absolute power corrupts absolutely.”)

How totally different, expressed Jim Lakely, were Kibbs’ “Rules for Liberty” in comparison to community organizer Saul Alinsky’s thirteen “Rules for Radicals” as created for his followers, among them being two of his fellow Chicagoans, Barack Obama and Hillary Clinton.  Alinsky’s rules are all about destroying anyone who gets in the way of reorganizing society.

Jim Lakely considers Alinsky’s Rule #13 as being the most dangerous.  It is the rule used by Global Warming alarmists against The Heartland Institute, a denier of manmade Global Warming stemming from CO2 emissions, as a means to the end of getting all opposition out of the way.  Demonizing the opposition, said Lakely, also allows “your [global warming alarmists] people to think of themselves as angels.”

 Alinsky’s Rule #13: Pick the target, freeze it, personalize it, and polarize it.

Following comments by Joe Bast and Jim Lakely, Bast opened up the discussion to those in attendance, but not before acknowledging that there were both conservatives and libertarians in the room, and that there could be many issues concerning liberty about which both groups of individuals would be in strong disagreement with each another. It was then that Bast reminded all how Ronald Reagan described his political philosophy when questioned by Manny Klausner of “Reason” magazine in 1975, the account of which is on pp. 217 – 218 of Matt Kibbe’s book:

If you analyze it. I believe the very heart and soul of conservatism is libertarianism.  I think conservatism is really a misnomer just as liberalism is a misnomer for the liberals — if we were back in the days of the Revolution, so-called conservatives today would be the Liberals and the liberals would be the Tories.  The basis of conservatism is a desire for less government interference or less centralized authority or more individual freedom and this is a pretty general description also of what libertarianism is.

Questions addressed to Joe Bast and Jim Lakely:

  • Of the internet and how the very concept of the Internet is libertarian? Joe Bast had some negative views of the Internet such as 1) the infiltration by Wikipedia by radical groups and 2) how Google is becoming more influential behind the scenes (When googling “Global Warming,” there are many pages to go through before the work of the Heartland Institute is ever mentioned.).  Jim Lakely, however, pronounced the Internet as a way to gather information quickly and easily in a process that before the Internet took a long time to do by using the library and the encyclopedia for research.  Agreed upon was that although the Internet is a useful way to exchange ideas, it has also made easy the dissemination of hate mail.
  • Of the lack of respect for the institution of marriage that has endured from the beginning of time, how those believing in marriage are now labeled homophobic, and how the conversation has become so much more course in the public debate?  Also noted was how Kibbe’s book didn’t discuss the sanctity of marriage.   In reflecting Joe Bast reasoned: Conservatives and Libertarians felt for a long time that not having much of a stake in elections, they didn’t need to come out in force to vote, resulting in a loss of ground to the other side.
  • Of the tendency among conservatives and libertarians not to fight back? Jim Lakely pointed out how tolerance isn’t tolerated the way it used to be.  Lakely then inquired as to when the determination was made that debate was no longer possible? Now all is a matter of life and death and when political views offensive to the other side can cost you your job.  A word to Republicans:  We are not in a debate, we are in a war!  The Left is attempting to stamp down counter opinions that defy what it believes and that which it wishes the public to believe. 

Download here a free chapter of Matt Kibbe’s bookDon’t Hurt People And Don’t Take Their stuff (A Libertarian Manifesto), as well as how to place an order and to listen to video interviews of Senators Rand Paul, Ted Cruz, Mike Lee and others. Matt Kibbe’s “New York Times” Bestseller was in stores on April 1, 2014, and can be purchased at Amazon, Barnes & Nobel, and Books-A-Million.

[Originally published at Illinois Review]

Categories: On the Blog

The Millennial Vote

May 19, 2014, 10:14 AM

There is good news for the Republican Party about millennial voters: they won’t be voting. A survey done by Harstad Strategic Research for the Youth Engagement Fund and Project New America on millennial voters provides important insight into voting preferences for 18-31 year olds. Although the survey was done by a Democratic polling firm, the results still send an important message to the Republican Party.

Lucky for the red team, millennial voters will likely be staying home in 2014. Only 28% of the survey’s respondents stated they will definitely vote in 2014. This should be worrisome to the Democratic Party. Obama’s ability to mobilize and woo young voters in 2008 and 2012 significantly helped his prospects at the polls. Without this bloc, the already existent Republican edge in midterm elections grows stronger.

The good news ends there. This survey (along with others) shows that once these voters mobilize, especially for the 2016 election, they will vote progressive, liberal, and Democratic. Rather than counting on low turnout, the Republican Party will be better off taking lessons from this survey and altering their message to young voters.

To be clear, the party does not need to change its views or stances on issues, it just needs to change the way it communicates with millennials. Words like ‘patriotism’ and ‘competition’ will no longer work. The party can emphasize its free market policies and limited government, but it has to appeal to the ethos of the voter by proving to him or her that our policies bring about ‘opportunity’ and equality’.

As of now, young people are convinced the government needs to be involved in their lives. The Republican Party can and must convince them otherwise, but to do so, they have to appeal to the right emotions and values. The party is better off limiting talk on Obamacare and focusing on affordable college and job openings. More so, it is important to spend time emphasizing that conservative policies help the poor and marginalized. By connecting conservative policies to the values young people find most important, the Republican Party can begin to make gains with the millennial generation.

The survey by Harstad Strategic Research is filled with liberal bias, but that does not mean conservatives should immediately write it off. The party should be relieved young people are staying home in 2014 because they have not done enough to earn their vote. By appealing to values that matter to millennials, Republicans can shape their message in a better way. Our policies create the results that young people want to see; it’s time to work harder to tell them that.

Categories: On the Blog

Light at the End of the Tunnel: The Passing of the Age of Obama

May 19, 2014, 12:09 AM

Conservatives need to wake up and start thinking past the rapidly passing age of Obama. Increasingly likely every day is that voters this November will remove Harry Reid as Senate Majority Leader. By electing a new Republican Senate majority, the voters will also render Barack Obama a lame duck, one of the lamest in history, as he will have no prayer of getting any of his legislative proposals — increasingly recognized as hard left — through Congress. (Despite his early national rhetoric, Obama doesn’t do bipartisanship.)

That new Republican Senate majority will also be a new check and balance on Obama’s appointment of federal judges, reversing the effect of the Reid rule change eliminating Republican judicial filibusters. That is especially crucial given that the five remaining Reagan/Bush appointees on the Court constitute the slimmest of majorities, with a couple of occasionally weak sisters among them. If just one of these five is replaced by another Elena Kagan or Sonia Sotomayor, the resulting shift from a Reagan majority on the Court to an Obama one would mean a longer-term Obama transformation of America.

Given the long-term cycles of American political history, Obama’s second midterm this year should be even worse for Democrats than the disastrous Obama first midterm in 2010. And the polls are bearing out that possibility.

The latest is a Pew/USA Today poll finding that 47 percent favor the Republican candidate for Congress in their district or state, while 43 percent favor the Democrat. That is a sharp turnaround from last October, when Democrats held a 6 point lead in the same generic midterm preference poll, 49 percent to 43 percent. The new Pew poll also finds a 16 point GOP lead among independent voters.

Moreover, the Pew poll finds that “65% would like to see the next President offer different policies and programs from the Obama Administration while 30 percent want Obama’s successor to offer similar policies,” as reported by Jason Riley in the May 5 Wall Street Journal.

In an April 27 Washington Post/ABC News poll, President Obama’s approval rating was down to an all-time low of 41 percent. That poll featured an 11 point Democratic advantage in the sample, which indicates further weakness in that Obama support, especially as compared to the 2010 midterm turnout rather than the 2012 turnout.

For context, in April 2010, President Obama’s job approval in that Washington Post/ABC News poll was 54 percent. In October 2010, just before the voters administered their first midterm beating to Democrats, Obama’s job approval was still 50 percent.

Similarly, the April Gallup poll showed an Obama approval rating of 43 percent, compared to an April 2010 Obama approval rating in that poll of 49 percent, and an early November 2010 approval rating of 44 percent. The latest Wall Street Journal/NBC poll found Obama’s job approval at 44 percent, compared to a May 11, 2010 approval of 50 percent, and an October 30, 2010 approval of 45 percent. So consistently in all these polls, Obama was doing better in 2010 just before that year’s Democrat blowout than he is doing this year.

The Washington Post/ABC News poll also found only 42 percent approval of Obama’s handling of the economy, lower than the 44 percent in the October 2010 poll. Most damning of all, 53 percent in the 2014 poll say it is more important to have Republican congressional majorities to check Obama’s policies, compared to 39 percent who believe it is more important to have Democratic congressional majorities to support those policies.

Bottom line in that poll, 45 percent say they plan to vote for Democratic candidates for Congress this fall, compared to 44 percent who say they plan to vote for Republican congressional candidates. But in October 2010, the Washington Post/ABC News poll showed Democrats with a 5-point advantage on that question, just before voters granted Republicans a 63-seat gain in the House, and a 6 to 7 seat gain in the Senate (depending on how you count the November 2010 affirmation of Scott Brown’s special election pickup of Senator Ted Kennedy’s seat).

These polls above, and state by state polls, are consistent with a Republican pickup in this fall’s midterm of as many as 10 Senate seats, establishing a new 55 to 45 Republican Senate majority, and 20 more House seats. To maximize that victory, Republicans need to campaign on a pro-growth platform of specific reforms to get America booming again as under Reagan. But in designing those proposals, conservative and Republican candidates, think tanks, publications, and policy intellectuals need to think past what can possibly be compromised with President Obama, and take their case for populist, pro-growth reforms directly to the people.

That should begin with pro-growth tax reform. Directly contrary to the Thomas Piketty/MSNBC socialists celebrating around massive, far left, anti-growth increases in tax rates on the most productive, Republican tax reform should involve sharp reductions in tax rates for everyone, in return for eliminating tax loopholes for special interest, crony capitalists.

A good model for that are the tax reform proposals developed by House Budget Committee Chairman Paul Ryan, already included in his budget proposals approved by the full House. For personal, individual income taxes, those proposals involve a 10 percent tax rate for annual incomes below $100,000, and a 25 percent tax rate for incomes above that. For corporate taxes, the top federal tax rate would be reduced to 25 percent as well.

Republicans should avoid the trap of promising that such reform would be revenue neutral, shifting the debate to that rather than the impact on growth. Their proposals should involve a net tax cut on a static revenue estimating basis (not taking into account the pro-growth effects), and a net revenue gain on a dynamic basis, considering the pro-growth effects.

Another pro-growth measure would be to repeal and replace Obamacare with the Patient Power health policy reforms proposed by free market health policy expert John Goodman, president of the National Center for Policy Analysis in Dallas. Those reforms would assure universal health care for all, with no individual mandate, no employer mandate, and a sharp net cut in taxes, spending, and cost-increasing regulatory burdens.

Those reforms would be based on a universal health insurance tax credit of roughly $2,500 per person, $8,000 per family, that every citizen could use to help purchase the private health insurance of their choice. For those who nevertheless still don’t choose to buy coverage with the credit, the unused funds would be sent in federal block grants to clinics and hospitals that serve the indigent. For those who get too sick while uninsured, perhaps with cancer or heart disease, to then buy private health insurance for the first time, the tax credit can be used to buy coverage from a state-based uninsurable risk pool, or from Medicaid, which would assure coverage for pre-existing conditions in any event. Medicaid should also be turned over to the states for further reform, with block grants as in the enormously successful, 1996 welfare reforms. That has also been endorsed by Ryan’s Republican budgets, and by the 2012 Romney/Ryan ticket. CBO estimates that would save $1 to $2 trillion in the first 10 years alone.

Some conservative analysts, and Republican health policy staffers, have been too pessimistic about the prospects for such reforms. They have succumbed to the fundamental mistake that under any market repeal-and-replace plan like the Goodman Patient Power plan, tens of millions of Americans will necessarily lose the health insurance plan they now have under Obamacare, doing to them what Obamacare just did to millions of Americans who were falsely told by President Obama that under Obamacare, if they liked their health plan, they could keep it.

The egregious error here is that since there is no mandate at all in the Patient Power market alternative to Obamacare, not a single health policy insurance plan in the entire country would be invalidated by repeal and replacement of Obamacare by the Patient Power market plan. Under that market plan, each individual chooses the health plan he will buy with the universal health insurance tax credit. The federal government does not specify what health plan anyone has to buy. So the Patient Power market reforms would not require the cancellation or invalidation, of any health insurance plans. Anyone who likes the health plan he has under Obamacare can simply use the tax credit to help pay for that one. The exact number of health insurance plans in the entire country invalidated if Obamacare is repealed and replaced by Goodman’s Patient Power market plan would be precisely 0.00, not 35 million as some analysts have misled their more credulous readers to believe.

With no employer mandate in the Patient Power plan, the effects of Obamacare in destroying jobs and full time employment are eliminated. With no individual mandate and no guaranteed issue or community rating regulation, the primary effects of Obamacare in increasing health costs are eliminated as well. The elimination of increased taxes and spending under Obamacare would be powerfully pro-growth as well.

Other important pro-growth reforms for Republicans to support would include a federal balanced budget amendment, fundamental reform of the Fed and monetary policy, possibly including a restored link to gold and other precious metals to at least guide monetary policy, comprehensive welfare reform based on work for the able bodied instead of guaranteed handouts, and personal savings, investment. and insurance accounts for Social Security and Medicare (instead of suicidal cuts in those highly sensitive programs).

Such reforms would involve a dramatic reduction in government spending and taxes over a generation, and restore booming, world leading, traditional American economic growth and prosperity, meaning millions of more jobs, higher wages and incomes for working families, and more real equality as a result.

[First published at The American Spectator.]

Categories: On the Blog

FCC Tries (Again) to be Lord of the Internet

May 18, 2014, 6:59 AM

FCC Chairman Tom Wheeler, the Lord of the Internet Pretend

The Federal Communications Commission this week voted 3-2 to establish new net neutrality rules that would prevent broadband networks from selectively blocking traffic, but allowing those companies to enter into deals with content providers for preferred access to their networks in “commercially reasonable” ways.

Scott Cleland, policy advisor for The Heartland Institute and chairman of NetCompetition, says this development indicates the FCC is moving ever closer to regulating broadband under “Title II” — as if it was a utility, such as telephone service.

“The primary problem of Title II regulation is it would abruptly decelerate the fast-speed of Internet business to the slow-speed of government,” Cleland said. “At core, Title II is a ‘Mother may I?’ regulatory regime that is as slow as its slowest part. What could take hours or days to accomplish in business time could take several months or even years in FCC Title II time.

“Practically, Title II regulation would require every business decision of consequence to be approved by the FCC – i.e., changes in services, prices, terms, conditions, or infrastructure,” he added. “Ironically, the obvious unintended consequence here would be to put the American part of the Internet in the slowest lane filled with interminable speed bumps, potholes, stop lights, and inspection stations.”

Matthew Glans, Senior Policy Analyst for The Heartland Institute, agreed, noting that putting broadband under Title II would “stifle” the growth of the digital economy.

“The Internet has thrived due to its open and market-based nature. Imposing a vast new array of government regulations under Title II would stifle what has made the Internet one of the biggest growth sectors of the economy,” Glans said. “Title II regulations are a throwback to a system which no longer exists and is ill suited to regulate the dynamic internet and broadband markets of today.

“To ensure the growth of our nation’s broadband infrastructure and the growth of the digital economy, any changes to how the Internet and broadband is regulated need to look away from outdated regulatory models and instead focus on policies that do not hinder innovation and growth,” Glans said.

Jim Lakely, co-director of the Center of the Digital Economy for The Heartland Institute, noted that the FCC doesn’t have the authority to impose rules on broadband networks.

“Watching the FCC attempt to construct net neutrality regulations to lord over the Internet is a bit like watching a child build a sand castle and declare himself king of the beach,” Lakely said. “Neither has really created a kingdom, but at least the latter is cute.

“Despite what he thinks, FCC Chairman Tom Wheeler does not have the power to regulate broadband networks as if they are telephony systems because Congress has not granted that power,” Lakely said. “Several federal court decisions have upheld that fact, yet every few months a partisan majority on the FCC persists in playing micromanager of the Internet. If broadband providers want to start charging Netflix and Google for hogging all the bandwidth, that is their right as the owners of those networks.

“Market forces are moving the digital economy in that direction, and rightly so – without arbitrary ‘reasonable pricing’ guidelines from bureaucrats who can’t possibly know what a ‘reasonable price’ is,” Lakely said.

“The push to enforce net neutrality via the FCC is, and has long been, a solution in search of a problem. Free markets have brought the world the wonders of the modern digital age, solving privately the inevitable conflicts and problems that have arisen,” Lakely said. “It is incumbent upon federal regulators to at least wait until there is an actual problem before moving in to ‘fix’ it. A failure of humility on the part of the FCC will only end up creating problems – and possibly crises – where none currently exist.”

Bruce Edward Walker, a policy advisor on telecom and technology policy for Heartland, compared the FCC’s decision to the Biblical Solomon.

“Whereas Solomon employed characteristic wisdom when he suggested splitting the baby, the Federal Communications Commission employs its equally characteristic dithering with its latest net neutrality plan,” Walker said. “Yes, the plan stops (just) short of Title II reclassification and allows fast lanes for delivery of high-bandwidth Web sites, which angers progressives. Conversely, it angers conservatives and free-market proponents by granting near complete control of the Internet on a case-by-case basis.

“Furthermore, such broad rule-making smacks of the last two failed FCC attempts to implement net neutrality,” Walker said. “A modern-day Solomon would recognize only Congress possesses the constitutional ability to pass such laws, not a regulatory agency prone to arbitrariness, inconsistency, and favoritism.”

The FCC’s proposed rule can be viewed here. Comments from the public are welcome through July 15, 2014. Leave yours here.

Watch me talk about net neutrality in the video below:

Categories: On the Blog

Cruz Bill Promotes Energy Liberation, Job Creation, Prosperity

May 17, 2014, 10:41 PM

The Obama administration has repeatedly threatened private and state land oil and gas exploration.

On March 27, Senator Ted Cruz (R-TX) introduced the American Energy Renaissance Act, providing for comprehensive liberation of energy producers to maximize energy production, job creation and prosperity for America. A companion bill was introduced in the House by Rep. Jim Bridenstine (R-OK).

Despite the war-like hostility of the Obama administration to the traditional carbon based energy that fueled the industrial revolution, the entrepreneurship and modern technology of America’s private economy is producing a boom in oil and gas production that is overwhelming President Obama. America has already surged to become the world’s number one natural gas producer. It is also now the world’s fastest growing oil producer, already third in the world. And America has the resources to be the world’s number one coal producer as well.

Not that President Obama did not try to stop this American success story, contrary to the grossly misleading rhetoric in his speeches taking credit for it. The Congressional Research Service recently reported that the portion of total natural gas production from federally controlled lands and offshore declined by 40% from Fiscal Year 2009 to Fiscal Year 2013. The portion of total oil production from such federally controlled areas declined by 32% over that period.

That was achieved by slowing permits for exploration and development of oil and gas in federally controlled areas, imposing moratoria on already granted permits (held to be contrary to federal law in federal court), and even withdrawing already granted permits. These policies have hurt federal revenues from oil and gas royalties, and taxes that would have been paid by oil and gas producers.

But the explosion of oil and gas production on private and state owned lands, so far outside of federal reach, has more than made up for the losses of possible production in federally controlled areas. That explosion of private oil and gas production has been due to the advances and development of the process of hydraulic fracking.

The practice of “fracking” has been in use in oil and gas production for almost 70 years. It involves high speed water injection underground, combined with less than 10% sand in volume, and 0.5% salts and other solvents, often commonly used by the general public. Though the practice more recently has excited the religious quality hysteria that might be expected from a demon sighting, no other negative effect of the practice has been documented in all these decades.

The more recent advances that have made the practice so much more effective have combined it with the 360 degree drilling techniques originally developed for deep water production of oil and gas, and modern computer technology that helps identify promising drilling targets. The resulting burgeoning supply of natural gas in the U.S. has produced sharp declines in natural gas prices in America, which has promoted a revival of American manufacturing, for which President Obama has also tried to take credit.

But the Obama administration has repeatedly threatened private and state land oil and gas exploration and production with potentially crippling new federal regulation that could shut this blossoming boom down. State governments have regulated fracking effectively to protect the public all these years. The Cruz-Bridenstine bill would continue that state regulation, removing any federal authority to interfere and regulate fracking.

The bill would also immediately approve the Keystone XL Pipeline, freeing the private sector to build it entirely with its own funds. That would directly create 42,000 good paying, private sector jobs, according to Obama’s own State Department, and support many times that through the reliable, low cost energy it would provide to the American economy. The Obama administration itself has already conducted five environmental reviews of the pipeline, all concluding it would have no significant, negative environmental effects.

President Obama repeatedly calls for more taxpayer funding of infrastructure to create jobs. But the private sector would be paying for the Keystone Pipeline infrastructure entirely with its own money, without taxpayer funds. So it should be a no brainer. Does the Democrat Party represent working people at all anymore?

The Cruz-Bridenstine bill would also remove any authority for EPA to regulate greenhouse gases to address supposed global warming concerns, until Congress acts to expressly authorize such regulation. Such proposed regulation under development by the EPA would be prohibitively expensive for the economy, causing skyrocketing energy costs for everybody, which would threaten the loss of millions of jobs. Such costly regulation should not be adopted by bureaucrats hiding from democratic accountability, unless expressly authorized by Congress to do so.

The Nongovernmental International Panel on Climate Change (NIPCC) documents in the thousands of pages of the multi-volume, peer-reviewed, Climate Change Reconsidered II, that the U.N.’s Intergovernmental Panel on Climate Change (IPCC), followed religiously by Obama’s EPA, leaves out consideration of hundreds of published, peer-reviewed, studies indicating that human emissions of greenhouse gases do not threaten catastrophic results. Indeed, those emissions have probably only benefitted plant and animal life on the planet so far, as increased carbon dioxide in the atmosphere promotes greater plant and agricultural growth, creating an actual greening of the Earth.

In fact, there has been no global warming for more than 17 years now, which even the IPCC concedes, and that period will soon be longer than the period of actual global warming (which may not have been global) lasting only 20 years or so, from the late 1970s to the late 1990s, as I have shown in a previous column. So there is no real world justification for the imposition of such regulatory costs.

The U.N.’s IPCC and Obama’s EPA only represent the government’s interests in expanded governmental tax and regulatory powers. Indeed, the U.N. is an organization of governments, many if not most not democratically elected. So it is not representative of the interests of working people in jobs and improved standards of living.

President Obama campaigning in 2008 famously said he would bankrupt the coal industry. He is already well down that road, with 288 coal fired power plants in 32 states already closed or closing as of June, 2013 due to newly adopted EPA regulatory costs and burdens. Those closures are already eliminating 50,000 good paying jobs in the coal, utility and rail industries alone, with indirect effects eliminating another quarter million jobs.

You see why I say President Obama is at war with America’s own energy industries, and that the Democrat Party no longer represents working people? Senator Cruz’s bill would terminate the EPA regulations already shutting down the coal industry, and destroying good paying jobs for working people.

Moreover, prospectively, the Cruz-Bridenstine bill would require that before any EPA regulations eliminating any jobs could take effect, the regulations would have to be expressly approved by Congress and signed by the president. EPA regulations currently under development are estimated to eliminate 2 to 3 million jobs in the next decade. Again, today’s Democrats are not representing working people.

Senator Cruz’s bill would also grant states the power to lease, approve permits for, and regulate oil and gas exploration and development on federal lands within their borders, and adjacent offshore areas. Federally controlled onshore and offshore areas hold 43% of America’s proven oil reserves, and 28% of natural gas reserves. Reversing Obama’s perverse policies and leasing and producing oil and gas in these federally controlled areas could create more than 1 million additional good-paying jobs. The states would then gain their share of those lease royalties and payments. States can best represent the interests of their own people in balancing jobs and environmental protections.

The bill would also authorize further exploration and development of oil and gas production in the National Petroleum Reserve, by Indian tribes on tribal lands, on the coastal plain of Alaska (ANWR), and offshore on the Outer Continental Shelf. The National Petroleum Reserve is estimated to hold close to a trillion barrels of oil, and 53 trillion cubic feet of natural gas. This reserve is set aside for oil and gas production, yet President Obama is not allowing further exploration and development even there.

West of the Mississippi river alone, Indian reservations hold 30 percent of the nation’s coal reserves, 50 percent of potential uranium reserves, and 20 percent of known oil and gas reserves. Cruz’s bill would empower the tribes to develop and gain the revenues from these energy riches.

While President Obama has held press conferences announcing expanded offshore drilling, in reality he has effectively prohibited exploration and development off the Atlantic and Pacific coasts. Welcome to the world of Orwellian Progressivism. Senator Cruz’s bill would streamline the regulatory process for offshore oil and gas exploration and development by requiring lease auctions of federally controlled offshore areas within 6 months of enactment of the legislation, and every 9 months after that, and drilling permit applications to be approved or disapproved within 20 days after they are submitted. The bill would similarly streamline regulatory approvals for new refineries, with not one new one built in the past 30 years.

Finally, the Cruz-Bridenstine bill would phase out the federal Renewable Fuel Standard (RFS) requirements over 5 years. The RFS, a federal folly adopted during the Bush years by a Democrat Congress, requires increasing percentages of so-called “renewable” biofuels to be blended into gasoline and diesel every year. The law now requires more such biofuels to be blended than are produced, which has left refiners forced to pay fines for failing to comply with impossible requirements. That has only arbitrarily increased gas prices, which harms the poor most of all, who often lack the money even to fuel essential drives to school, the grocery store, the pharmacy, or even mandatory court appearances. For these costs, the RFS provides essentially no actual benefits.

This comprehensive American energy liberation is a very Reagan-like policy that shows presidential vision and leadership. It shows that Cruz understands how to create jobs and rising wages and incomes, while Obama has shown he does not. Those Progressives out there who think they can laugh off Cruz should learn that in the late 1970s, Reagan was not socially acceptable among the elite Washington establishment. Within a few years, he had won two landslide national elections, including one over an incumbent Democrat president.

[First published at Forbes.]

Categories: On the Blog

The Bitter Harvest of Obama’s Transformation

May 17, 2014, 11:02 AM

In campaigning for the presidency, Barrack Obama inspired popular support of millions of voters by eloquently promising to “transform” America with “fundamental” change. Now his popularity is at its all-time low, his signature legislation, Obamacare, has been a disaster, his highly touted—and extremely expensive—stimulus program has failed. He has done nothing to lower the federal debt or tackle the future insolvency of Social Security, Medicare or Medicaid.And the economy continues to stumble 58 months after the recession officially ended.

In the first quarter 2014, home loan demand plunged 58% from the same period a year ago and 23% percent from fourth quarter 2013. Ever since the Fed began its “quantitative easing”— printing money—in late 2008, it was hoped that driving down interest rates would stimulate home buying and lead to growth in other segments of the economy. Many people were able to refinance their homes with lower mortgage rates, but the hoped-for follow through for the rest of the economy has been very weak. Moreover, the low interest rates have a sizable downside: they lowered the purchasing power of millions of retirees struggling to supplement fixed incomes with decent returns from low-risk investments.

Since the recession ended 58 months ago in 2009, the gross domestic product (GDP) has grown only 1.8% a year on average, half the rate of the past three recessions. The unemployment rate remains stubbornly high at 6.7%, and the standard of living for most people has declined. Median household income declined 1.65% in 2008 and 2.6% in 2009—but it continued to fall after the end of the recession: by 2.3% in 2010 and 2.5% in 2011. In 2013 median household income was 6.2% lower than in 2007, the official beginning of the recession. And it was 4.7% lower than in June 2009, the official end of the recession. Obama’s policies have put the country on the wrong track. This is emphasized by the fact that since the end of the recession, employment has risen from 140 million to 145.7 million—but the number of Americans who are neither working nor seeking to work soared from 80.9 million to 91.4 million!

The labor participation rate includes workers and those looking for work but not those who have quit looking for work. This rate now stands at 62.8%, the lowest in 36 years. The employment rate (employment-to-population ratio) stands at 58.9%, compared to 59.4% in 2009. Pathetic as those numbers are, the situation is much worse than they indicate. As we pointed out in a previous posting, 60% of the jobs lost during the recession were in the middle pay range and only 21% in lower paying jobs, but almost the exact opposite occurred during the so-called recovery: 58% of the new jobs were low-paying while only 22% were in the middle range. In short, workforce income has downshifted. Far from showing an economic recovery, the numbers collectively show the economy has been going downhill since Obama became president.

Obama got elected by promising a fantasy he cannot deliver because it is disconnected from economic realities. The “transformational change” he promised has burdened the economy with wasteful government spending, mounting debt, tax increases and costly regulations that dissuaded business from investing and hiring. Evidence throughout the world shows the path to prosperity lies in reducing government spending and government’s role, not in increasing them as Obama has done. The International Monetary Fund data show that nations which restrained government spending enjoyed above-average economic growth. Daniel Mitchell of the Cato Institute provides some examples:

In Sweden, government budgets grew an average of only 1.9% annually from 1992 to 2001, and government spending as a percent of GDP dropped 15%.

In Germany, government spending grew an average of less than 0.2% annually 2003 to 2007, and government spending dropped to 5.4% of GDP. A significant budget deficit became a surplus.

In Canada, government spending grew an average of only 0.8% annually 1992 to 1997, and government spending as a percent of GDP dropped 9.4%. A large deficit turned into a surplus.

Latvia has cut government spending by an average of more than 4% annually since 2008 and reduced government spending as a percent of GDP by more than 7%.

Other nations with similar results include: Ireland (1985-89), Slovakia (2000-04), Singapore (1998-08), Italy (1996-2000), Lithuania (2008-present), Taiwan (2001-06), Israel (2002-05), Estonia (2008-11), Iceland (2008-present) and the Netherlands (1995-2000).

Regulations slow economic growth and impose costs on business and consumers. They make business less competitive and leave consumers less money for saving or spending—including spending for necessities. The overall cost of federal regulatory compliance is estimated at $1.9 trillion annually in a new study, based largely on government documents, by Wayne Crews of the Competitive Enterprise Institute. This amounts to $14,974 per U.S. household, because the added cost of regulatory compliance is embedded in the prices of all goods and services. Regulation is not a free service provided by a benevolent government for its citizens; it is a service that costs them much more than they realize. But by far the greatest and most tragic cost is the slower economic growth that has meant fewer jobs, lower incomes and vanishing economic possibilities that tens of millions of Americans will never see.

The 2013 Federal Register contains 3,659 final rules, which means they must be obeyed now, and 2,594 proposed rules that will have to be obeyed when their final publication appears. Mr. Crews reports that there are another 3,305 regulations moving through the pipeline. Of these, 191 are defined as “economically significant” (having annual costs over $100 million each). This means we are likely to see even more of these expensive regulations from Obama’s remainder in office than in his first 3 years as president, when 106 new regulations in this cost category were adopted. That compares to 28 during the eight years of the George W. Bush administration.

The Federal Register in 2013 contained 79,311 pages. The all-time record was 81,405 pages in 2010. Four of the five largest occurred during Obama’s presidency.

Regulations also impose costs by delaying or denying permits for enterprises that would provide employment. Obama has stated his goal of income equality affects everything he does, even why he ran for president. He speaks out against the rich with the class warfare rhetoric of Saul Alinsky and Karl Marx. This makes him popular with middle and lower income voters and unwilling to approve permits or regulations that would favor business or the wealthy—even when they would provide jobs and good wages for the very people he professes to be most concerned about. A case in point is the oil and gas industry.

According to the Bureau of Labor Statistics, new jobs in the oil and gas industry increased 92% between 2003 and 2012, compared to a 3% increase in all jobs during this period. The BLS says the average annual wage in the oil and gas industry was $107,200 in 2012, the latest full year available. At the other end of the scale, waiters and waitresses earned about $16,200 a year, workers in the accommodations industry averaged $27,300, and those in retail trade averaged $27,700. But in oil boom regions, energy development lifted wages for low-income workers, too.

Williston, North Dakota, and Sidney, Montana, are oil boom towns on the western edge of the Bakken geologic formation. Drs. Polzin and Whitsett report:

“Before the Bakken boom in 2003, BLS data showed that average wages in all jobs in Richland County [Sidney] and Williams County [Williston] were roughly equal to their state averages. In Richland County, wages averaged $30,000, or 91% of the Montana average. In Williams County, wages averaged $32,700, or 97% of the North Dakota average.

“The data show that these counties now have average wages that have risen to 133% (Montana) and 170% (North Dakota) of their state averages. And wages in lower-paying jobs have also increased in inflation adjusted terms and relative to the region. In Richland County, food service wages have risen 109% (from 80%) of the Montana average. In Williams County, wage growth has been even more dramatic—to 146% from 97% before.”

The authors point out that these two counties are not atypical but characteristic of oil and gas development throughout the U.S. They conclude: “Lower-paid workers in retail trade, food services and accommodations jobs experienced much faster than expected increases in wages per worker. The data don’t lie.”

The reality of lower-wage, less-skilled workers benefiting from higher-wage, more skilled workers does not jibe with collectivist ideology to which Obama clings. That ideology holds that people becoming rich under capitalism do so at the expense of the poorer classes. That is the essence of the class warfare attacks against the rich and demands that they pay higher taxes— their “fair share”—and that government redistribute this wealth. The more some people increase their wealth, the more virulent become the diatribes against the inequality of wealth. The clamor increases for extending unemployment benefits, other transfer payments, food stamps, subsidies for Obamacare, and other welfare measures, all disincentives to work.

North Dakota has an unemployment rate of 2.6%, the lowest in the nation. You’d think Obama would want to emulate North Dakota in order achieve jobs and lower the unemployment rate elsewhere. He has spoken repeatedly about his concern for “jobs, jobs, jobs,” which he claims to be concerned about and trying to create. But he has so far refused to approve the Keystone XL pipeline to bring oil from Alberta to refineries on the Gulf Coast, which would create thousands of jobs just like happened in North Dakota. Last year North Dakota added 18,000 jobs; the Keystone XL pipeline would add 20,000 jobs over several states. The Keystone XL pipeline has been waiting for approval since 2008. (It appears the White House doesn’t want to reject the pipeline until after the November elections because billionaire Tom Steyer, who is pleased by the delay, has promised $100 million to help the Democrats retain the Senate. Obama doesn’t want to nix the pipeline until after November elections because several Democratic office holders are in favor of the pipeline and might lose re-election if the pipeline is vetoed.)

Another illustrative example in the oil and gas industry is Oregon’s Jordan Cove terminal for exporting liquefied natural gas. It will provide Rocky Mountain drilling states with easier access to international markets; however, it took two years to obtain federal approval, which happened just last month. The regulatory delay was tantamount to a 100% tax on the profits that would have been made during those two years. The costly delay would no doubt have been even longer if Putin’s invasion of Crimea had not led Congress to push for more exports to ease Russia’s control over Europe’s energy needs. Significantly, there are 24 other liquefied natural gas terminal projects waiting for approval.

Before wealth can be “redistributed,,” it must first be created. Obama’s policies act against the creation of wealth. Food stamps do not create jobs. Extending unemployment benefits does not create jobs. Waiters and waitresses and others in low-paying employment do not create jobs; they benefit from jobs created by others.

How do people become wealthy? By providing goods, services and jobs that other people accept to better themselves. Consumers and workers choose new or more economical products, more efficient service or a better paying job because those things are in their self-interest. Other people provide these things through innovation, capital investment and hard work. Some get rich from this process. So much the better, for now they have the know-how and capital to do more of the same. Buyers and sellers enter transactions for their own benefit, but each side must benefit the other in order to succeed. Transactions are “win-win.” In this system those who accumulate the most wealth are those who most enrich others through the freedom of the marketplace. These are the people Obama targets for higher taxes in order to make them pay their “fair share.”

When Obama castigates the wealthy for not paying their “fair share,” his accusation is devoid of any respect for their natural rights. Under a system of natural rights, every individual has a natural right—by the cause-and-effect principle—to whatever wealth he accumulates by the exercise of his rights through labor and trade with others. That is the only “fair” system for the distribution of wealth. It is also the most efficient way of utilizing financial, human, and material resources and raising the standard of living in society.

Aristotle was the first to introduce the cause-and-effect principle in human thought, more than 2,000 years ago, but it has been at the root of knowledge far longer. At least as far back as primitive man learned to hunt or grow food, he has employed the cause-and-effect principle to learn about the world around him and advance his condition. The same cause-and-effect principle is applied so often today we take it for granted in our daily routines, our work, providing for our families and their futures, in medical research and countless other scientific pursuits that extend our knowledge of nature. It is this same principle that identifies property as an effect of action stemming from the right to life, which is the cause. The right to property was seen by our Founding Fathers as the principle means of exercising their right to the “pursuit of happiness,” which is a moral statement of an individual’s natural right to act for his own self interest. It means his own happiness is a moral purpose of his life, in the context of his own rights and respecting the same rights of others. The only political system for this is free-market capitalism.

Natural rights are “unalienable,” as the Declaration of independence states. That means they are “not transferable to another person or capable of being repudiated.” You cannot repudiate natural rights; you can only honor them or violate them—as Obama has done by trying to “fundamentally transform” America. It is appropriate to recall Étienne Gilson’s observation, “The natural law always buries its undertakers.”

When government attempts to redistribute wealth, it necessarily violates the property rights of some for the unearned benefit of others. Some people gain, others lose. Unlike free-market transactions, which are win-win, government-forced economic transactions are win-lose. The more win-lose transactions proliferate, the more the economy underperforms what would be achieved by the win-win transactions of a free market. Obamacare is a perfect example: tens of millions of people lose by being forced to pay more for their health insurance, and the money is redistributed to others in the form of unearned health benefits and salaries to administrators.

Obamacare is not an exception. All government economic interventions are win-lose transactions. They are wasteful, distort price signals, misallocate funds, and foster inefficient use of natural resources. In a future posting we shall discuss these issues and include examples. For now, we conclude with further evidence against demands for economic equality and show that the disparity is NOT increasing, as is frequently claimed. Those claims are simply phony propaganda for advancing socialist schemes.

According to the Bureau of Labor Statistics, inheritance and gifts account for 16% of household wealth of the top quintile. For the hated top one percent, inheritance is about 15%. Those numbers have declined by almost half in recent decades. Meanwhile, inheritance comprises 43% of the lowest quintile of household wealth and 31% of the second-lowest quintile.

Kevin D. Williamson writes: “The wealthiest Americans work for their money, and the poor could learn from them. Wealthy households contain on average more than four times as many full-time workers as do poor households….They live modestly relative to their means and for the most part do not work on Wall Street or as corporate executives….

“The country would in fact be far better off if more people lived the way the top 20 percent do: married, working their butts off, saving and investing their money, and living within their means. …as a practical matter we are running out of ways to spend money on the needy: We already pay for education, food, housing, job training, health care, heating, etc.”

[Originally published at American Liberty]

Categories: On the Blog

Net Neutrality Rhetoric: ‘Believe it or not!’

May 16, 2014, 12:11 PM

With due credit to Ripley’s Believe it or Not!®,” so much odd and bizarre is happening in Washington in the “name” of “net neutrality” that the topic calls for its own collection of: “Believe it or Not!®” oddities.

INTERNET FAST LANES:

Net Neutrality activists who have long condemned the FCC for not making the Internet fast enough now condemn the FCC for proposing to make the Internet faster!

Google and Amazon oppose the FCC enabling them to pay for fast-lane delivery of their online services when they both are launching very-costly, same-day, home delivery services!

The U.S. Post Office, Fedex, UPS, and DHL, which all allow faster, paid-prioritized delivery of letters and packages, the airlines and the TSA, which allow faster paid-prioritized plane-boarding and airport-security-clearance, and consumers, which have long paid more for faster-lanes to the Internet, apparently “didn’t get the Free Press memo” that “paid-prioritization” and faster service is a bad thing!

Net neutrality activists think they can get Gigabit-speed broadband by imposing kilobit-speed Title II regulations!

Net neutrality activists’ latest claim that we currently have an equal speed Internet with no slow or fast lanes, ignores what all consumers know, that they can get free access to slower Internet or pay more for whatever faster Internet speed they want or need!

Sloganeers’ serial and opportunistic rebrandings of “net neutrality” have so confused it’s meaning that the latest “No Internet fast lanes” rallying cry implies opposition to most everyone’s desire for a speediest Internet!

By opposing Internet fast lanes as unfair, net neutrality proponents are arguing for everyone to have equally slower Internet service!

TITLE II UTILITY REGULATION

While advocating the use of 706 authority to accelerate broadband deployment and “remove barriers to infrastructure investment,” the FCC also is toying with imposing Title II utility regulation, which would enshrine the FCC as the single biggest barrier to infrastructure investment ever!

In seriously considering Title II utility regulation of broadband, the FCC considers protecting edge providers freedom to innovate without permission by taking away broadband providers freedom to innovate without the permission of the FCC!

America’s aristechractic Internet companies, which enjoy the least regulation, taxation, and law enforcement from government of any sector, are aggressively pushing the FCC for the most draconian type of regulation possible on the broadband industry!

Internet Association members imagine that playing with the launch of a Title II reclassification “nuke” would present no risk of “fallout” for them or the Internet ecosystem!

Internet Association President Michael Beckerman strongly opposed Net Neutrality regulation and Title II reclassification when he was on the Hill, butnow is among its most ardent proponents!

Net neutrality coiner Tim Wu has proposed a novel Title II corporate welfare scheme to the FCC that would apply Title II regulation only to Silicon Valley’s downstreaming “telecommunications,” that combined with his recommendation for zero-pricing of downstream traffic, would then force users to shoulder the entire cost burden of upgrading the Internet’s infrastructure!

Net Neutrality professors Tim Wu and Susan Crawford think broadband should be regulated as a utility like monopoly electricity, water and gas utilities are, but electricity, water and gas cannot be delivered via copper, coax, fiber, wireless and satellite like broadband can!

COMMERCIALLY REASONABLE:

The Internet Association threatens to “go SOPA” on the FCC if they have to pay “commercially reasonable” prices for special delivery of their high-volume video streaming rather than their non-negotiable demand of a zero price for downstream traffic – forever!

Silicon Valley interests and net neutrality activists are making a federal case over the difference between a “commercially reasonable” and a “just and reasonable” pricing standard!

Silicon Valley companies and investors suggest that the Internet start-ups they fund can’t afford a “commercially reasonable” price for bandwidth!

Strange but true.

“Believe it or Not!®”

[Originally published at Precursor Blog]

Categories: On the Blog