Tag Archives: Barack Obama

News

Democrat Maxine Waters charged with ethics violations

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Story from Yahoo News.

Excerpt:

A House investigative panel has decided to charge Democratic Rep. Maxine Waters of California with ethics violations, raising the possibility of a second high-profile trial with political implications for Democrats this fall.

People familiar with the investigation, who were not authorized to be quoted about unannounced charges, say the allegations could be announced next week. The House ethics committee declined Friday to make any public statement on the matter.

Waters has been under investigation for a possible conflict of interest involving a bank that was seeking federal aid. Her husband owned stock in the bank.

New York Democrat Rep. Charles Rangel also faces an ethics trial this fall on separate charges that included failure to disclose assets and income, nonpayment of taxes and doing legislative favors for donors to a college center named after him.

Both Waters and Rangel are prominent members of the Congressional Black Caucus. Dual ethics trials would be a major political liability for Democrats, forcing them to defend their party’s ethical conduct while trying to hold on to their House majority.

While Rangel is a former chairman of the tax-writing Ways and Means Committee, Waters is a prominent member of the Financial Services Committee.

Waters came under scrutiny after former Treasury Department officials said she helped arrange a meeting between regulators and executives at Boston-based OneUnited Bank without mentioning her husband’s financial ties to the institution.

So that’s two Democrats on trial for ethics violations. I wonder if we can get three before the mid-term elections?

News

Offshore drilling moratorium would cost 175,000 jobs per year

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From Big Government. (H/T ECM)

Excerpt:

During a 45-minute conference call with journalists from 40 major media outlets this morning, Jack Gerard shared some startling predictions about the future health of the nation’s oil and natural gas industry if the Obama Administration gets its way in adding more regulation and increasing taxes on offshore drilling in the Gulf of Mexico. The biggest one of all is enough to cause anyone to take pause:

“The administration’s moratorium, if continued indefinitely — or similar legislative proposals which would make the deep water unavailable or uneconomic — would cost this country 175,000 jobs every year between now and 2035, according to our latest analysis,” said Gerard, president of the American Petroleum Institute, a group representing some 400 oil and natural gas companies.

The story has more scary effects of a complete shutdown of deepwater drilling. One of my friends who I am staying with during my vacation says that the real number is closer to 200,000 jobs per year.

Commentary

Comparison of budget deficit and GDP under Reagan and Obama

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Here’s a nice article from the Wall Street Journal.

Excerpt:

Democrats have been running Congress for nearly four years, and President Obama has been at the White House for 18 months, so it’s not too soon to ask: How’s that working out? One devastating scorecard came out Friday from the White House, in the form of its own semi-annual budget review.

The message: Tax revenues are smaller, spending is greater, and the deficits are thus larger than the White House has been saying. No wonder it dumped the news on the eve of a sweltering mid-July weekend.

[…]As a share of the economy, the White House now says the deficit in fiscal 2010, which ends on September 30, will be even larger than in 2009: 10%. That’s after a full year of economic growth, given that the recovery began last summer. More remarkable still, the deficit will barely fall in fiscal 2011, declining only to 9.2% of GDP in the second year of a recovery that ought to be gaining steam.

Let’s compare Obama and Reagan.

To put this in historical context, consider the nearby table that compares deficits as a share of GDP under Presidents Reagan and Obama. The 1981-82 recession was comparable in severity to the one Mr. Obama inherited and reached similar heights of unemployment. The deficits that resulted from that recession were the source of huge political consternation, with Democrats, the press corps and even some senior Reagan aides insisting that only a huge tax increase could save the country from ruin.

Yet as the table shows, the Reagan deficits never reached more than 6% of GDP, and that happened only in 1983, the first year of economic recovery. As the 1980s expansion continued, the deficits fell, especially as the pace of spending slowed in the latter part of Reagan’s second term.

[…]The Obama deficits are double that, and more than one-third higher than even the Gipper’s worst year. What explains this? Part of it is that Democrats are simply spending much more, sending outlays as a share of GDP above 25% for the first time since World War II. The White House now says outlays will be higher in 2011, at 25.1% of GDP, than at the height of the stimulus in 2009 and 2010.

[…]The other explanation for the record Obama deficits is that revenues have been so anemic, thanks to the lackluster economic recovery. In the Reagan years, revenues as a share of GDP never fell lower than 17.3%, despite (or we would say because of) his pro-growth tax cuts. In 2010, by contrast, the White House now says tax revenues will hit an astonishing low of 14.5% of GDP, rising only to 15.8% in 2011, even with the huge tax increase that hits on January 1, 2011.

Tax cuts worked, and government spending failed. Next time, let’s do what works – not what feels good.