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Thirteen cases where the Obama administration has acted outside the law

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This is the most popular article on Investors Business Daily.

Excerpt:

  1. Aug. 14, 2013: The Obama administration delayed the provision in ObamaCare to cap out-of-pocket health care costs, picking and choosing parts of the law to enforce, which is to exceed its authority.
  2. July 17, 2013: The 4th Circuit Court of Appeals joined the federal appeals courts in D.C. and Philadelphia in ruling President Obama’s National Labor Relations Board recess appointments — who by law must be approved by Congress — were unconstitutional. Thus far, the president has ignored the ruling.
  3. July 1, 2013: The Obama administration unilaterally decided to delay the employer mandate provision of ObamaCare for a year, which is to provide information to the feds about the extent of an applicant’s insurance. Never mind that the law states the mandate must go into effect on Jan. 1, 2014 — they are now relying on the “honor system” from applicants to determine if they are qualified for subsidies.
  4. June 25, 2013: The Supreme Court ruled in Shelby County v. Eric Holder that Section 4 of the Voting Rights Act is “unconstitutional” and that “the formula can no longer be used as a basis for subjecting jurisdiction to preclearance.” Instead of complying with the ruling, Holder filed suit to order Texas to submit to preclearance, in defiance of Congress’ authority to legislate and the Supreme Court’s authority to rule on the constitutionality of the law.
  5. June 15, 2012: The Obama administration announced it will stop deporting illegal immigrants under the age of 30 in a “deferred action” policy to circumvent immigration laws. This comes after Congress rejected a similar measure about a year ago. Since then, more than 500,000 illegals have received the deferment and only 20,000 have been rejected. As for the law-abiding applicants who have been waiting in line, well, that’s Obama’s idea of “lawfulness.”
  6. May 20, 2013: A Washington Post article revealed that Fox News reporter James Rosen was investigated by the DOJ, which subpoenaed his phone records and emails in direct contravention of the First Amendment under the pretense of a leak investigation.
  7. May 13, 2013: AP reported the DOJ secretly collected phone records of AP reporters and editors, a move completely outside the realm of law. Even the AP — which up until then had been pretty submissive to the Obama agenda — was appalled by the breach.
  8. May 10, 2013: The IRS revealed it targeted conservative groups applying for tax-exempt status beginning in March 2010, a direct targeting of political opponents through the tax laws. It’s one of the crimes that led Congress to impeach President Nixon.
  9. May 3, 2011: When asked when he first heard of Operation Fast and Furious, Attorney General Eric Holder falsely testified, “I’m not sure of the exact date, but I probably heard about Fast and Furious for the first time over the last few weeks.” Head of the National Drug Intelligence Center Michael Walther told Holder about Fast and Furious in a July 2010 memo. Subsequent revelations showed he knew all along.
  10. March 27, 2012: EPA issued final rules regulating greenhouse gas emissions on electric utilities that require power plants to use nonexisting carbon capture-and-control technology to meet new emission standards, in defiance of the Congress’ rejection of cap-and-trade legislation.
  11. April 23, 2012: The administration postponed Medicare Advantage cuts by calling them a “demonstration project” and used funds not approved by Congress to delay effects of those cuts before the election.
  12. March 1, 2011: Attorney General Holder lied to Congress, saying “decisions made in the New Black Panther Party case were made by career attorneys in the department.” Associate A.G. Thomas Perrelli, an Obama political appointee, overruled a unanimous recommendation for prosecution by DOJ attorneys.
  13. Feb. 3, 2010: Judge Martin Feldman held the Obama administration in contempt for re-imposing an offshore drilling moratorium that was struck down by the courts.

Thomas Sowell talks about the political left in his books “The Vision of the Anointed” and “A Conflict of Visions”. He presents the view that the left believes that they are the “anointed”. They are morally superior, and therefore they do not have to care about the rule of law or consequences or the criticisms of the opposition, when they are implementing their policies. When the policies fail, they never blame themselves, they just go outside the law even more. You can see this in socialist regimes in other times and places. It can never be the case that the schemes of the anointed are wrong-headed. The solution is always to act more and more lawlessly, and to silence, coerce and purge all opposition until the policies work.

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Why did Detroit go bankrupt? Who is to blame? Whose fault was it?

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This article from Front Page magazine traces the history of the city of Detroit.

Excerpt:

Beginning in 1962, Detroit has endured a steady diet of Democratic mayors and their social welfare agenda. Beginning in 1962, Mayor Jerome Cavanagh ushered in a “Model City” program to a nine-square-mile section of the city. It was based on a Soviet Union-style approach, aimed at rebuilding entire urban areas all at once. The effort was funded by a commuter tax and a new income tax that Cavanagh told residents would be paid by “the rich.” Yet the same central planning that that formed the heart of the Model City program was extended to the people themselves, who eventually resented being told by government how to run their businesses and their lives in exchange for government goodies. Unsurprisingly, the program was a monumental failure.

Then there were the riots. In 1967, police broke up a celebration at a “blind pig.” Blind pigs were after-hours clubs that featured gambling and prostitution and had been part of the traditional black culture in Detroit since Prohibition. The political leadership considered them antithetical to the Model City program. An enraged neighborhood did not. People took to the streets, igniting the worst race riot of the decade. Black-owned business were looted and burned to the ground. Forty people were killed and 5,000 were left homeless. Thus began the “white flight” out of the city center, totaling 140,000 people over an eighteen month period, ensued. The city never recovered.

None of this stopped the progressive agenda from continuing to be implemented. Public employees were given precisely the exorbitant wage and benefits packages that are coming back to haunt the city now. This Democrat-fostered attitude extended to private sector unions, whose equally exorbitant packages, along with efficiency-strangling work rules, made the cost of doing business in the Motor City prohibitive. As a result, much of the car industry that formed the city’s employment backbone left for right-to-work states that provided a far less hostile — and far more affordable — business climate.

As chronicled here, the same progressive-inspired insanity destroyed the Detroit public school system (DPS), which itself stands on the brink of bankruptcy. This tragedy is highlighted by several sad realities. In 2009, DPS students turned in the lowest scores ever recorded in the national math proficiency test over its then-21-year history. The state of Michigan, led by Detroit, has one of the highest black-white achievement gaps in the nation. As of June 12, only 1.8 percent of the system’s students were capable of doing college level work.

Yet by far the most telling indictment of the system is this mind-bending reality: a full 47 percent of city residents are functionally illiterate.

The governor of Michigan Rick Snyder has just come out and said that he will not ask for a bailout from the federal government of Detroit.

Excerpt:

Michigan Gov. Rick Snyder and the bankruptcy specialist he appointed to fix Detroit’s unprecedented financial problems put the blame Sunday squarely on the city and defended their decision to file for Chapter 9.

The Republican governor said Detroit created the problems and stood steadfast behind his decision to file Thursday for bankruptcy, with the city roughly $19 billion in debt.

“This is a tragic, difficult decision, but a right one,” he said. “It’s not about just more money, it’s about accountable government.”

He said corruption and city leaders ignoring warning signs for 60 years contributed to the problems. Among his biggest concerns, Snyder said, is the decline of municipal services for Detroit’s remaining 700,000 residents, including police response times of nearly one hour.

Thank God. Maybe now they will start to elect Republicans for the first time in over 50 years.

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Wal-Mart cancels plans to build three stores after D.C. leftists raise minimum wage 50%

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From Fox Business, a story that shows how completely clueless left-wing politicians are about economics.

Excerpt:

Wal-Mart Stores (WMT) no longer plans to build three stores in the nation’s capitol, after the city’s council voted to force large retailers to pay starting wages that are 50% higher than the minimum wage there.

The world’s largest retailer also said it will consider its options related to three other Washington, D.C., stores that are still under construction.

The bill, called the Large Retailer Accountability Act of 2013, was approved by an 8-to-5 vote, even though Walmart had warned that the company would leave the district.

“Nothing has changed from our perspective: we will not pursue Skyland, Capitol Gateway, and New York Avenue and will start to review the financial and legal implications on the three stores already under construction,” Walmart spokesman Steven Restivo said, referring to the locations of the planned stores.

“This was a difficult decision for us—and unfortunate news for most D.C. residents—but the Council has forced our hand.”

The district’s new law requires retailers with sales of more than $1 billion and with stores of at least 75,000 square feet to pay their workers starting salaries of at least $12.50 an hour, compared to the minimum wage of $8.25.

Unionized businesses are exempt from the measure. Large stores that already have a presence in D.C., including Target (TGT) and Macy’s (M), have four years to comply.

Now for most of my readers who understand economics, what happened here is going to be pretty obvious. But sometimes people get specialized in other areas and neglect the study of economics. The danger then is that they will be moved to support policies that appeal to their hearts. But it’s very important to understand that policies that sound good, like raising wages, often have unexpected negative results.

Here is George Mason University economics professor Walter Williams to explain the problem with increasing the minimum wage, starting with the basics of economics.

Excerpt:

Are people responsive to changes in price? For example, if the price of cars rose by 25 percent, would people purchase as many cars? Supposing housing prices rose by 25 percent, what would happen to sales? Those are big-ticket items, but what about smaller-priced items? If a supermarket raised its prices by 25 percent, would people purchase as much? It’s not rocket science to conclude that when prices rise, people adjust their behavior by purchasing less.

It’s almost childish to do so, but I’m going to ask questions about 25 percent price changes in the other way. What responses would people have if the price of cars or housing fell by 25 percent? What would happen to supermarket sales if prices fell by 25 percent? Again, it doesn’t require deep thinking to guess that people would purchase more.

This behavior in economics is known as the first fundamental law of demand. It holds that the higher the price of something the less people will take and that the lower the price the more people will take. There are no known exceptions to the law of demand. Any economist who could prove a real-world exception would probably be a candidate for the Nobel Memorial Prize in Economic Sciences and other honors.

[…]University of California, Irvine economist David Neumark has examined more than 100 major academic studies on the minimum wage. […]About 85 percent of the studies “find a negative employment effect on low-skilled workers.” A 1976 American Economic Association survey found that 90 percent of its members agreed that increasing the minimum wage raises unemployment among young and unskilled workers. A 1990 survey found that 80 percent of economists agreed with the statement that increases in the minimum wage cause unemployment among the youth and low-skilled. If you’re looking for a consensus in most fields of study, examine the introductory and intermediate college textbooks in the field. Economics textbooks that mention the minimum wage say that it increases unemployment for the least skilled worker.

When considering what economic policies to adopt, it is not enough to do what feels good. Liberals and conservatives agree that it is good to help the poor. Liberals think that higher minimum wage rates help the poor, and conservatives think that lower minimum wage rates help the poor. This is not a topic that is up for debate, though, because economists across the idological spectrum agree on this one – and for the reasons outlined above and illustrated in the Wal-Mart case.

Take a look at this post from moderate Harvard University economist Greg Mankiw.

He writes:

I believe it is better to introduce students to economics with topics about which there is more of a professional consensus. In chapter two of the book, I include a table of propositions to which most economists subscribe, based on various polls of the profession. Here is the list, together with the percentage of economists who agree:

    1. A ceiling on rents reduces the quantity and quality of housing available. (93%)
    2. Tariffs and import quotas usually reduce general economic welfare. (93%)
    3. Flexible and floating exchange rates offer an effective international monetary arrangement. (90%)
    4. Fiscal policy (e.g., tax cut and/or government expenditure increase) has a significant stimulative impact on a less than fully employed economy. (90%)
    5. The United States should not restrict employers from outsourcing work to foreign countries. (90%)
    6. The United States should eliminate agricultural subsidies. (85%)
    7. Local and state governments should eliminate subsidies to professional sports franchises. (85%)
    8. If the federal budget is to be balanced, it should be done over the business cycle rather than yearly. (85%)
    9. The gap between Social Security funds and expenditures will become unsustainably large within the next fifty years if current policies remain unchanged. (85%)
    10. Cash payments increase the welfare of recipients to a greater degree than do transfers-in-kind of equal cash value. (84%)
    11. A large federal budget deficit has an adverse effect on the economy. (83%)
    12. A minimum wage increases unemployment among young and unskilled workers. (79%)
    13. The government should restructure the welfare system along the lines of a “negative income tax.” (79%)
    14. Effluent taxes and marketable pollution permits represent a better approach to pollution control than imposition of pollution ceilings. (78%)

When you raise the price of anything – including labor – fewer people will buy it. Wal-Mart will still spend the money on new stores and new employees, just not in Washington, D.C. – not with those laws. Notice that number one on his list is the case of rent control, where government good-intentioners try to hold the price of rent down. What happens next? Well, it the price goes down then everyone wants to buy more of whatever just went on sale. But the people providing what just went on sale stop making it because they can’t make a profit. The unexpected consequence is that there is a housing shortage. The quantity of housing decreases, and the quality of housing decreases. The quality decreases because demand is so high that property owners no longer have to maintain the properties, since demand has skyrocketed. Economics is something that everyone should study, so that we don’t just have good intentions, but also have good results.