Tag Archives: Crony Capitalism

Democrat writer exposes Al Gore’s greed and hypocrisy

Registered Democrat and Obama supporter Walter Russell Mead assesses Al Gore’s suitability to lead the global warming movement. (H/T Newsbusters)

Excerpt:

You can be a leading environmentalist and fail to pay all of your taxes.  You can be a leading environmentalist and be unkind to your aged mother.  You can be a leading environmentalist and squeeze the toothpaste tube from the middle, park in the handicapped spots at the mall or scribble angry marginal notes in library books.

But you cannot be a leading environmentalist who hopes to lead the general public into a long and difficult struggle for sacrifice and fundamental change if your own conduct is so flagrantly inconsistent with the green gospel you profess.  If the heart of your message is that the peril of climate change is so imminent and so overwhelming that the entire political and social system of the world must change, now, you cannot fly on private jets.  You cannot own multiple mansions.  You cannot even become enormously rich investing in companies that will profit if the policies you advocate are put into place.

It is not enough to buy carbon offsets (aka “indulgences”) with your vast wealth, not enough to power your luxurious mansions with exotic low impact energy sources the average person could not afford, not enough to argue that you only needed the jet so that you could promote your earth-saving film.

You are asking billions of people, the overwhelming majority of whom lack many of the basic life amenities you take for granted, people who can’t afford Whole Foods environmentalism, to slash their meager living standards.  You may well be right, and those changes may be necessary — the more shame on you that with your superior insight and knowledge you refuse to live a modest life.  There’s a gospel hymn some people in Tennessee still sing that makes the point:  “You can’t be a beacon if your light don’t shine.”

This old story from the UK Telegraph has more on Al Gore’s demagoguery and profiteering.

Green energy firm run by Obama fundraiser gets $535M loan guarantee

Obama Unemployment Stimulus Graph
Obama Unemployment Stimulus Graph

From the Daily Caller. (H/T Doug Ross)

Excerpt:

Solyndra, Inc. was supposed to have showcased the effectiveness of the Obama administration’s stimulus and green jobs initiatives, but instead it has become the center of congressional attention for waste, fraud and abuse of such programs.

According to a Feb. 17 letter signed by Energy and Commerce Committee Chairman Fred Upton, Michigan Republican, and Oversight Subcommittee Chairman Cliff Stearns, Florida Republican, to Energy Secretary Steven Chu, the Fremont, Calif.-based solar panel manufacturer should never have received a $535 million loan guarantee from the stimulus.*

The company became the first recipient of an Energy Department loan guarantee under the stimulus in March 2009, which was intended to “finance construction of the first phase of the company’s new manufacturing facility” for photovoltaic solar panels.

The Energy Department estimated in a March 20, 2009 press release that the loan guarantee would create 3,000 construction jobs and a further 1,000 jobs after the plant opened.

And President Barack Obama and Vice President Joseph Biden each personally showcased Solyndra as an example of how stimulus dollars were at work creating jobs, during appearances at the company over the course of the following year.

Biden personally announced the closure of Solyndra’s $535 million loan guarantee in a Sept. 9, 2009 speech, delivered via closed-circuit television, on the occasion of the groundbreaking of the plant.

The vice president justified the federal government’s investment in Solyndra in front of employees and other dignitaries, including Secretary Chu and former Calif. Gov. Arnold Schwartzenegger, saying the jobs the company intended to create would “serve as a foundation for a stronger American economy.”

“These jobs are the jobs that are going to define the 21st century that will allow America to compete and to lead like we did in the 20th century,” Biden said.

According to Biden’s speech, the $535 million loan guarantee was a smaller part of the $30 billion of stimulus money the administration planned to spend as part of its Green Jobs Initiative.

Obama made similar claims in a May 26, 2010 speech at the plant, but the 1,000 jobs he and Biden touted in their respective speeches failed to materialize.

Instead, Solyndra announced on Nov. 3 it planned to postpone expanding the plant, which put the taxpayers on the hook to the tune of $390.5 million taxpayers**, or 73 percent of the total loan guarantee, according to the Wall Street Journal.

It also announced that it no longer planned to hire the 1,000 workers that Obama and Biden had touted in their speeches and that it planned to close one of its older factories and planned to lay-off 135 temporary or contract workers and 40 full-time employees.

A closer look at the company shows it has never turned a profit since it was founded in 2005, according to its Securities and Exchange Commission (SEC) filings.

And Solyndra’s auditor declared that “the company has suffered recurring losses, negative cash flows since inception and has a net stockholders’ deficit that, among other factors, [that] raise substantial doubt about its ability to continue as a growing concern” in a March 2010 amendment to its SEC registration statement.

“While we understand the purpose of the Loan Guarantee Program is to help private companies engaging in clean energy products to obtain financing by providing loan guarantees, subsequent events raise questions about Solyndra was the right candidate to receive a loan guarantee in excess of half a billion dollars,” Upton and Stearns wrote.

A June 2010 Wall Street Journal report indicating that Solyndra’s majority owner, Oklahoma billionaire George Kaiser, was a major fundraiser for the 2008 Obama-Biden campaign has stimulus opponents such as Citizens Against Government Waste crying foul.

What did we get for spending nearly a trillion dollars on stimulus? We got 9% unemployment. But Obama’s political cronies got a big raise.

Economics in One Lesson

Perhaps it is time to review Henry Hazlitt’s Economics in One Lesson, chapter 4, entitled “Public Works Mean Taxes”.

Excerpt:

Therefore, for every public job created by the bridge project a private job has been destroyed somewhere else. We can see the men employed on the bridge. We can watch them at work. The employment argument of the government spenders becomes vivid, and probably for most people convincing. But there are other things that we do not see, because, alas, they have never been permitted to come into existence. They are the jobs destroyed by the $10 million taken from the taxpayers. All that has happened, at best, is that there has been a diversion of jobs because of the project. More bridge builders; fewer automobile workers, television technicians, clothing workers, farmers.

And consider Chapter 5 as well, entitled “Taxes Discourage Production”.

In our modern world there is never the same percentage of income tax levied on everybody. The great burden of income taxes is imposed on a minor percentage of the nation’s income; and these income taxes have to be supplemented by taxes of other kinds. These taxes inevitably affect the actions and incentives of those from whom they are taken. When a corporation loses a hundred cents of every dollar it loses, and is permitted to keep only fifty-two cents of every dollar it gains, and when it cannot adequately offset its years of losses against its years of gains, its policies are affected. It does not expand its operations, or it expands only those attended with a minimum of risk. People who recognize this situation are deterred from starting new enterprises. Thus old employers do not give more employment, or not as much more as they might have; and others decide not to become employers at all. Improved machinery and better-equipped factories come into existence much more slowly than they otherwise would. The result in the long run is that consumers are prevented from getting better and cheaper products to the extent that they otherwise would, and that real wages are held down, compared with what they might have been.

There is a similar effect when personal incomes are taxed 50, 60 or 70 percent. People begin to ask themselves why they should work six, eight or nine months of the entire year for the government, and only six, four or three months for themselves and their families. If they lose the whole dollar when they lose, but can keep only a fraction of it when they win, they decide that it is foolish to take risks with their capital. In addition, the capital available for risk-taking itself shrinks enormously. It is being taxed away before it can be accumulated. In brief, capital to provide new private jobs is first prevented from coming into existence, and the part that does come into existence is then discouraged from starting new enterprises. The government spenders create the very problem of unemployment that they profess to solve.

George W. Bush cut taxes in his first term and created 1 million NEW JOBS. Obama transfered BILLIONS from the private sector to the public sector, where government waste is rampant. Government spending is a job killer. Obama might be a nice man, but he is just wrong on economics and business. What we should have done is elected someone who doesn’t repeat the mistakes made in other countries, like in Japan where massive government spending failed to stimulate the economy. And we shouldn’t enact single-payer health care, because it’s not working in Canada. The wait times to see doctors in Canada are increasing. We should only imitate the successes of other countries, like the free trade agreements in Chile or the flat tax in Lithuania or the private retirement accounts in Chile or the low tax rates of Hong Kong. We have to decide, as a nation, whether we want jobs and prosperity, or rhetoric and feelings.

Which political party should Christians vote for?

Mary sent me this disturbing story from Citizen Link, which shows how secular leftist special interests want to restrict religious liberty.

Excerpt:

A “who’s who” of Leftist, humanist, abortion and gay organizations submitted a stern letter to President Obama on Tuesday, demanding that he rescind part of the 2002 Executive Order protecting religious hiring rights.

More specifically, the coalition wants Obama to prohibit contractors who do business with the government from using religious-based hiring criteria.

The letter, signed by 52 organizations, comes days before the 70thanniversary of President Franklin D. Roosevelt’s Executive Order that barred discrimination by federal contractors. His directive was then codified into law in Title VII of the 1964 Civil Rights Act, which prohibited employers from hiring and firing based on religious beliefs. In 1972, it was slightly amended to exempt churches and religious associations.

The timing of the letter also coincides with the federal government’s stepped-up efforts to codify into law special protections for gay, lesbian, bi-sexual and transgender people.

Bruce Hausknecht, judicial analyst for CitizenLink, noted the biased news coverage of the weighty issue. “The liberal news media has given Americans the impression that faith-based charitable groups are pushing to rescind these protections,” Hausknecht said. “Not true. A closer look at the list of cosigners reveals the true motive: to silence people of faith and push them out of the public square.”

Cosigners include: American Civil Liberties Union, Americans for the Separation of Church and State, Catholics for Choice, Center for American Progress Action Fund, Gay & Lesbian Advocates & Defenders, National Education Association, National Gay and Lesbian Task Force, National Organization for Women, People for the American Way, Religious Coalition for Reproductive Choice and the Transgender Law Center.

When you elect a Democrat, you’re electing someone who wants to use the power of the state to marginalize and censor Christianity. In fact, if you read classical works on economics like “The Road to Serfdom”, you’ll learn that socialism necessarily leads to the destruction of all other liberties, including religious liberty. That is because the bigger that a secular government becomes, the less they are willing to allow individuals to make their own decisions based on their own personal morality and religion. Obama is one of the worst offenders in this regard – we have never had a more pro-abortion and pro-same-sex marriage President. We have never had a President who was more allied with pro-abortion lobbyists and pro-gay-rights lobbyists. And he is also in favor of paying welfare to women who freely choose to raise children without fathers. This man is anti-life, anti-family and anti-marriage. No Christian could vote for such a man.

Should Christians vote for Democrats who want to “tax the rich”?

Let’s make it clear, because a lot of Christians don’t understand this. In order for you to exercise your freedom as a Christian, you need to have money. With money, you can afford charity, private Christian schools, Bibles, apologetics books, marriages, children, homeschooling, and so forth. How do you get that money? You work for it. And how do you make it grow? You invest it.

Now let’s see how the secular left and their agenda of redistribution at wealth hurts that plan.

  1. They get you fired, like Frank Turek was fired by Cisco Systems, because you are a Christian
  2. They tax your income and give it to anti-Christian groups, like Planned Parenthood
  3. They tax your investments to fund public schools which undermine Christian truth claims (evolution) and Christian morality (sex education)
  4. They confiscate money from your employer and redistribute it to government workers and unions, which makes it harder for you to stay employed
  5. They restrict your choices for educating your children, by sending more money to public schools and legislating against private schools and homeschooling
  6. They take over health care, forcing you to subsidize secular leftist causes like abortions, sex changes, in vitro fertilization, etc.
  7. They take over health care, forcing Christian doctors and nurses to perform procedures that violate their consciences
  8. They halt military spending and pro-democracy initiatives, and coddle captured terrorists, encouraging terrorist attacks, like 9/11
  9. They spend enormous amounts of money, increasing government dependence and discouraging families from having children

And so forth. Basically, the more you vote for free market conservatism, the more small businesses there will be. The more small businesses there are, the better your chance of finding an employer who will not discriminate against your Christian faith. (Contrary to popular beliefs, conservatives DO NOT like big corporations – because they are almost ALWAYS liberal, seeking to use the government to block younger companies from challenging them with better quality and lower prices). The more employers there are to choose from, the more likely you can find a higher salary. The higher your salary, the more you have to spend on charity, as well as your family and your community. The more money you make in investments, the more you can buy apologetics books and sponsor apologetics web sites and conferences and debates. The more the government stays out of the free market, the more choice you have to buy goods and services that are in line with your Christian values – e.g. – SCHOOL CHOICE. The more the government stays out of health care, the less you will pay for health care since you don’t need coverage for abortions, sex changes, in vitro fertilization, etc. The less government regulates business, the less opportunity there will be for these secular leftist special interest groups to lobby government to discriminate against Christians.