American Free Enterprise's Last Gasp

Law professors and community organizers just don't get the secret of the American freedom agenda, according to Mitt Romney in this victory speech in Barack Obama's backyard. This may be the final voice of reason when it comes to the contrast between government solutions and the free enterprise system.

I can hardly wait for the general campaign that will draw a clear distinction between these two vastly divergent philosophies. People tell me there's no hope to change things, they tell me things have deteriorated too badly to rescue the country, that America's in decline, that our debt and deficit picture is so bleak it can never be reversed now short of a general economic collapse.

Well, I just don't believe it. Ronald Reagan was famous for reminding us that "it's always morning in America." I still believe that. Every two years Americans have the privilege under our Constitution to go to the voting booth and change direction when they think things have gone awry. They did that in 2008, and got more than a few disappointing surprises since then. In 2010, they rejected the Obama agenda in resounding fashion by a record-setting reversal in the People's House, and booted Nancy Pelosi from the Speaker's chair.

In 2012, they have the chance to reshape America's policies once again by sending Mitt Romney to the White House and taking control of the Senate. As of this week, Republicans are leading in key Senate races across America, suggesting they may accomplish that important task. It's the reason we are a resilient nation, one that cannot be suppressed unless our wounds become self-inflicted. Our problem is not about enemies who can attack us from without - our problem is the divide within our borders.

But my faith in America remains steadfast. It's never too late to turn things around.

Mitt Romney and Capitalism's Last Gasp

This could easily be classed as "the last gasp for capitalism and supply side economics" if Obama is re-elected:

It's the Stupid Electorate

Velma Hart

First it was Joe the Plumber with an embarrassing question for candidate Obama in the 2008 election cycle.  Recently, it was Velma Hart, who described herself as "a CFO, wife, mother and veteran."  In one of those "not-intended-for-prime-time" unguarded moments at a town hall meeting to tout the end of the recession, the rolling cameras from MSNBC caught her on tape.  Now that moment, on the very day, September 22, 2010, the recession was officially pronounced as "over," is going viral on YouTube.

She explained first she was an avid supporter of President Obama and had voted for him in 2008.  But then she expressed her "deep disappointment" with Obama's economic record -- to his face.

"I've been told that I voted for a man who said he's going to change things in a meaningful way for the middle class. I'm one of those people, and I'm waiting, sir. . .  I'm waiting, but I don't feel it yet."

Calling herself "exhausted" by having to defend not only her vote for him, but now-President Obama, she lamented that she and her husband had thought the "franks and beans" era of their lives had drawn to a close.  But she went on to say she hears it "knocking" at the door. Then she asked the President if her anxiety is to be her "new reality."

Stunningly, the ever-articulate President Obama when he's using a teleprompter staggered through an unsatisfying review of his legislative record of achievement to completely overhaul the socio-economic structure of America, none of which did anything to directly answer Velma's question or to improve her life in any measurable way that satisfied her. 

But here was the stunner for me in his answer:  "That's [living a life of hard work and responsibility] what we want to reward."  Who's the "WE" in his answer?  It's the arrogance that shocks me.  The "WE" is the federal government that will decide who gets rewarded -- how, how much, when, and what.  This President is so out of touch with his own supporters he can't connect emotionally, it seems, at even the lowest level of empathy. 

At least Bill Clinton in his heyday could come up with a quivering lip and an "I feel your pain."

Senator John Kerry (D-MA)

Here's another example yesterday from Senator John Kerry (D-MA), who is once again one of the "political elites" without a clue what Americans are doing, saying, feeling and will soon be voting that way: 

The Boston Herald this morning quoted Kerry as saying, “We have an electorate that doesn’t always pay that much attention to what’s going on so people are influenced by a simple slogan rather than the facts or the truth or what’s happening.”

Classic!!  So, let me understand, "It's the stupid electorate!"  Now I get it.

Here's your test, America:  Two choices -- A) it is Americans who do not understand what's going on; or B) it is our elected officials in Washington D.C. who do not understand what's going on.

If you guessed A, you will be recycled back to kindergarten.

It's about the spending, stupid!

James Carville, when he was running the war rooms in the Bill Clinton era, famously said, "It's about the economy, stupid," when asked what those elections were all about.

Fast forward to 2010.  This year, "It's about the spending, stupid."

When Bob Bennett went down in flames earlier this year, failing to get out of convention with enough support to even be a primary candidate, we were warned here in Utah that we would be sacrificing a senior Senator who knew how to bring home the bacon to our small state.  Because of his powerful voice in Washington D.C., we were told, we would no longer have his "clout."  He not only defended the earmarks during his campaign, he advocated for them, arguing, "If we don't take the earmarks they will just go to some other state."  We were scolded, "You just don't know how things work in Washington."  Well, he never understood the voters who perceived him as part of the big problem in Washington D.C. 

The big problem is this:  To perpetuate the status quo at all costs. 

The Obama economic team, presumably the brightest minds in America, seem to have no awareness about the simple-minded judgments of their masters, the voters, because they arrogantly proclaim they are the ruling elite who know better than the masses.  That mentality might work for dictators in other parts of the world, but not here in America. 

I noticed last week how slow the incumbents have been to learn the lesson.  Americans are angry this year.  So angry they appear to be poised to begin again and disembowel the establishment.  Like me, the buyer's remorse over our national leadership is palpable.

Lisa Murkowski, incumbent Republican Senator from Alaska lost a narrow primary election last week.  Why?  Apparently her message that she brings home the bacon to Alaska was resoundingly rejected.  Enough is enough, voters there have said.  Politicians who were on deck for the last several years are going to pay dearly for their inept handling of the economic throttles.  Now they will be throttled. 

This is shaping up as more of a bloodbath for both parties, and I say it's about time.  The Republican regulars are licking their chops in anticipation of a huge victory come November.  We're only eight weeks out from November 2nd, and you can feel it in the air.  CHANGE is on its way.  If they don't blow it this time, Republicans are going to notch a big win. 

But it's only a potential anti-Democrat win.  What's the big plan, guys?  Haven't heard much about that, only that Democrats are evil.  Give us a reason to suggest you should be trusted again.  Memo to Republican strategists:  It had better be about more than promising to "crackdown" and investigate.  We don't care about Obama's Justice Department letting the Black Panthers skate.  We DON'T care about that.  Where's the substance for your plan for economic reform?  Stay on task, people!

The only question remaining is what will the margin be at the end of the day?  Will they get to 218 in the House?  Can they knock out the filbuster-proof majority in the Senate?  Harry Reid's seat would be a good start on the path to that goal.  They need a magic number of 39 seats to win control of the 435-member House.  The Senate's harder, but doable.

It's possible.

The party leader of the Democrats is on permavacation, apparently.  This weekend he's at Camp David.  Those torturous three-day work weeks in Washington are just too much!  At the rate he's flying Air Force One, the frequent flyer miles are piling up faster than the most prolific business traveler.  Harry Reid is running for his political life in Nevada, while his boss adds new decor to the Oval Office with inspiring quotes woven into the rugs.  But don't lose any sleep for Reid.  Even if he loses he wins -- don't think for one minute his leadership in the Senate during this last several years will not come without handsome rewards in retirement. 

And where's Nancy Pelosi?  She won her seat in 2008 with a 72 percent majority, but her popularity among voters nationally as Speaker has shrunk to 11 percent, according to CBS in a poll among registered voters in March.  She's been totally AWOL this summer.  Yet she proclaims, "We're proud of what we've been able to accomplish."  Really?  Then tell us more, pray tell.  Even the Democrats who are running for re-election have shunned her.  Instead of trumpeting their legislative success these last nineteen months, they are all in total retreat.  The tsunami is gaining momentum and there is nothing they can do in the next eight weeks to stem the tide. 

As you may have discerned from this page, I have no confidence in either side of the aisle.  Let the purge be massive and without party label.  New blood on both sides is the required remedy this year.

In 1994, the Republicans swept the House races, picking up 52 seats and getting, for the first time in 40 years, a Republican majority and a Republican speaker, Newt Gingrich.  It was unprecedented.  The Democrats had held sway in the House forever, it seemed.  That year even then-Speaker Tom Foley (D-WA), lost his seat. No problem this year for Pelosi, however.  She'll retain her House seat, but she won't be Madam Speaker much longer.

I saw a Gallup poll among registered voters this week that had Republicans beating Democrats in a generic ballot by 10 points, 51 percent to 41 percent.  Public trust is a fragile commodity.  If those numbers are true, it appears voters are ready to forgive and hand the Republicans another chance. 

In the 68-year history of that poll, the GOP had never led by more than five points.  This is potentially earth-shattering news for Democrats who are going to receive a slap down heard round the world.  In Europe they wonder aloud, "Why are the Americans flirting with socialism?"  They understand what the brilliant tacticians in the Obama administration don't -- socialism is a failed experiment, and it has been proven a failure again and again.  It will fail here in America too.

The incumbent Republicans, however, are in big trouble nationwide as the "enablers" to socialism.  The Republican majorities under George W. Bush lost their way and acted more like tax-and-spend Democrats when they had the reins the last time.  No incumbent wants to change the status quo.  But voters do.  If you were on watch in recent years, you will pay the ultimate political price for your duplicity this November. 

RealClearPolitics in their polling data has Republicans ahead in 206 races and Democrats ahead in 194, with 35 too close to call.  The Cook Political Report puts 68 Democratic House seats "at substantial risk," while judging less than a dozen GOP seats to be in real trouble.

A few weeks ago, the ever-erudite and ever-so-articulate White House spokesman Robert Gibbs, conceded the obvious -- Republicans could take the House. Yikes, what an admission that was!  He's not alone, because other Democrats have said as much.  Those Democrats are just so sneaky!  They've got those always-say-no Republicans right where they want 'em.

If the GOP underperforms and doesn't sweep both Houses, Obama's supporters will just say, "See, voters  don't trust the Republicans, and our man still has the hearts of the American voter." 

The cash disparity between the parties this year is stunning.  The Wall Street Journal's Neil King Jr. notes many of the closest races this year are dominated by the deep pockets of the Democrats.  In twenty of those races "the Democrat has at least a four-to-one cash advantage over the Republican candidate." The Democratic Congressional Campaign Committee says it has nearly $17 million more to spend on key House races than its GOP counterpart. Then there are the unions: "The AFL-CIO says it will spend more than $40 million to back candidates and mobilize residents of union-member households to vote in November, overwhelmingly in support of Democrats."

No such thing as a sure thing.  Republicans take note.

In 1994, Newt Gingrich was the chief architect of "The Contract with America."  It resonated with voters.  It was packed with conservative principles to cut spending, cut taxes, and deregulate industry, all designed to allow the economy to flourish.  It was right out of Ronald Reagan's conservative playbook.  One of the things that drives me crazy is Presidents taking credit for economic success and getting blamed for sour recessionary economies in reverse.  With all due respect to those who assert otherwise, Ronald Reagan only had a bully pulpit which he fully utilized, but in the end it is Congress alone, the elected representatives of the people in our republic, who hold the purse strings.  It is members of Congress who must ultimately be held accountable by voters, not Presidents, for the prosperity or the recessions through which we pass.  Bill Clinton rode the horse triumphantly when he finally reached the promised land of a budget surplus, but the underpinnings were the result of Americans giving the purse strings to Gingrich, who made good on the Contract. 

Bush and his majority Congress, not Obama and his majority, destroyed all those gains.  This latest Democrat majority in both Houses just put the final nails in the coffin Republicans constructed on their watch.

There are differences between 1994 and 2010. The miscalculations in Democrat messaging this year have been -- for lack of a better analogy -- tsunami-like.  A tsunami builds in magnitude as it rolls across the ocean, triggered by an earthquake at sea.  By the time it hits landfall it's too late.  For a year, Democratic strategists have been saying:

"We'll pass health care, they'll love us." 
"We'll have a Recovery summer, they'll love us."
"We'll run against Wall Street, they'll love us."

In case you didn't notice, unemployment numbers ticked up in August to 9.6 percent nationwide.  Some recovery (little "r" not big "R").  All those glorious plans to connect with voters on these issues have met with astounding opposition.  It isn't so much the messaging as it is the practical reality -- "It's about the spending, stupid."

Look for a lot of negative ads in the next eight weeks from the Democrats -- it's all they've got left.

I remember another stunning difference in 1994.  I voted for Ross Perot because I was convinced his message if not heeded would put us right where we are with the two dominant parties today.  Perot was my man twice.  He was well-organized, unlike the Tea Party this year, but he had no visibility and had to scream like crazy to even be included in the debates between Bush and Clinton.  One thing the Tea Party has going for it this year is visibility and it's gaining strength.  Its candidates are running under the Republican banner, but make no mistake, these are not your parents' Republicans.  They are much more independent and outspoken against the traditional GOP.  They are younger, and they are more anchored to the people than ever before.  That's a positive trend I'd like to see perpetuated.

That's exactly why I believe on principle they are going to win back at least the House if not the Senate too.

There is only ONE issue on the ballot in eight weeks.  Who is bold enough to stop the spending?  Who will stand up and be counted as a tightwad, a green-eye-shaded, cold and calculating accountant, who will speak the truth to the American people?  Who will say, "The Emperor has no clothes?"  Who will admit higher taxes currently imbedded in legislation passed over the last nineteen months in the middle of the night time and time again is disastrous, no matter how noble its intended purpose may have been?  Who will say taxes and spending are out of control, and I will stand up for the American people in opposition to the continuation of the status quo? 

There isn't a Democrat out there this year who can say with a straight face, "I was not part of this problem," nor is there a Republican incumbent who can remain untainted by his or her role in the complete abdication of their fiduciary duties to the taxpayers.  Not one of the incumbents has shown the least restraint in subduing the spending spree.  Everything they have done is to indicate they don't really want to stop spending.  For too long our politicians have cared only about perpetuating themselves in the next election.

Bob Bennett was Exhibit A, and now we have another, Lisa Murkowski, as Exhibit B.  I am certain there are other examples, and they must all be eliminated if we are to save the Republic.  Save it from what, some have asked?  From complete ruination and the effects of profligate spending to sustain the unsustainable staus quo.  This is not hard to understand.

There is simply no place to run and hide this time.  Judgment awaits its perpetrators.  If you don't get it yet, let me say it one more time:

It's about the spending, stupid!

Utah Digging Out of Recession

The Associated Press August 24, 2010, 8:14AM ET

SALT LAKE CITY

Utah is adding jobs faster than it is losing them for the first time in several years, state economists said Monday.

Utah's unemployment rate remained steady at 7.2 percent in July amid signs the state is digging itself out of the recession.

Utah added 17,200 jobs over the past year, with the state work force expanding by 1.5 percent to 1.19 million jobs, according to the state Department of Workforce Services.

The recovery, however, is slow. And the unemployed are filing more than 2,000 jobless claims a week, double the historic average, said Mark Knold, chief economist of the Department of Workforce Services.

Those claims were as high as 5,000 a week at the start of 2009.

Signs of job growth are encouraging, although the survey data is subject to revision and could backslide, Knold said.

Utah is still playing catch-up. About 75,000 jobs have been removed from the state economy over the past three years, he said.

Three of Utah's economic sectors are still showing net job losses -- manufacturing, construction and government.

Knold said the construction sector could stabilize by year's end. Utah has lost a third of its construction jobs since July 2007, and it could take another 10 years before the state returns to the previous high mark in that industry, he said.

During the recession, Utah manufacturers scaled back employment by 4,100 positions to 20,000 -- the worst-hit industry in the state, Knold said.

Other employment sectors made modest gains over the past year.

The department said nearly 98,000 people in Utah were considered unemployed in July.

Utah's July unemployment rate was well below the national figure of 9.5 percent.

* * *

Now that school has begun and the fall season is upon us, we have a better handle on what the unemployment situation is.  I'm using the number of attendees at our Monday morning networking meeting as the gauge here.  Last January the room where we meet was filled to overflowing.  We were seeing around 175 -180 participants every Monday monring.  I have joked that we would only hold that meeting for as long as it took to get the numbers down to the size where we could meet in a phone booth.

The drop since January has been gratifying.  We've got the only job in the Church I know of where you succeed if no one shows up for the meeting. . .  For the last several months we have seen the number of participants decline to 70 or 80 each week.

Even when David Checketts was our featured speaker a couple of weeks ago and I expected to see some "ringers" who weren't really unemployed show up to hear him speak, the number only ticked up slightly to 95.  A year ago, David spoke to a standing-room-only audience in excess of 200.  His stake in New Canaan, Connecticut, had 120 heads of household out of work last year.  This year he reported that number is down to 10.  Despite what the gloomy national statistics are telling us, improvement is discernable and real but still slower than necessary.

Growth is slow because of government intervention.  Get government out of the way and the economy will take off.  Free markets hate uncertainty, and no one has injected more uncertainty into the equation more than the President of the United States and his majority leadership in both Houses of Congress.  Force feeding a fast diet of economic fat fueled by debt, sugar-filled programs, regulatory bills filled with new agencies designed to bypass Congressional oversight and debate, coupled with expanded entitlement spending has been disastrous.

Despite all that, there is significant evidence I can point to that Utah is leading the way out of this recession.  Because Utah's constitution mandates balancing the budget each year, businesses here are hiring, growing and defying the odds.  The growth is slow but discernable and sustainable despite the malaise in evidence in other parts of the country.

There, I delivered some good news.  And there's more. . .

It was reported earlier in the week that 14 Utah businesses are in this year's list of the Inc. 500's fastest growing companies, further evidence Utah is rising above the recession doldrums.  Funding Universe leads the way in Utah at number 34.  And what's the business model for Funding Universe you ask?  Matching angel investors with budding entrepreneurs and their startup businesses. 

Now if we can just reverse the disturbing effects of socialism, entitlements, bailouts and handouts, we'll progress even faster.

David Brooks wrote a thoughtful piece in the New York Times this morning comparing Germany's approach to the financial crisis with America's.  Under conservative leadership in Germany, notably German Chancellor Angela Merkel, Germany elected to spend significantly less on stimulus borrowing as a percentage of GNP, and their unemployment numbers are back down to pre-crisis levels.  Germany's economy is expanding right now at a blistering pace.  However, America's bloated experiment with massive debt and unbridled spending has frozen economic recovery by contrast.  Germany rejected the thinking of America's "best minds" on economics and has proven their case.  She has shown the example to America -- if you're the government, you can't borrow and spend your way out of a recession.  Hip, Hip, Hooray for capitalism, Ms. Merkel!!

Let's hope Americans have seen enough data to reverse course in November and follow the example of Germany.  I never thought those words would come out of my cyber pen, but there you go. . . America should take an economic lesson from Germany.   

Unthinkable. . . until now. 

"Obamanomics" -- is that a word?

Whatever it is, it isn't working very well.  Why?  Because private capital is being hoarded and isn't even in the game yet.  I've seen recent estimates that American-owned banks are sitting on up to $2.7 Trillion.  Why?  Uncertainty.

This editorial from the Washington Examiner stated the case well yesterday:

"They've spent nearly $8 trillion since 2007, including nearly $2 trillion on economic stimulus programs and an equal amount for the Troubled Asset Relief Program and similar bailouts. They've effectively nationalized Fortune 500 corporations, taken over the health care sector, and set the regulatory stage for more bailouts and takeovers, but the needle is still stuck. Worse, recovery isn't likely for many months ahead because those same politicians are planning more of the same failing policies.

"Consider that entrepreneurial small businesses are the job-creation machine of a free-enterprise economy. But these firms are about to get smacked with significant tax rate increases that will keep most of them struggling just to survive. President Obama, Senate Majority Leader Harry Reid and House Speaker Nancy Pelosi will let the Bush tax cuts of 2001 and 2003 expire as scheduled Jan. 1, 2011. The current 33 percent tax rate on individuals will go to 36 percent, and the current 35 percent rate will increase to 39.5 percent. Those are individual rates, but the majority of small-business profits are taxed as income to individuals."

The editorial concludes:

"As for the big corporations that are hoarding billions of dollars that would otherwise be flowing into new investments and fueling renewed economic growth, there is no mystery why they are putting off making such decisions. Who can blame them after seeing the nationalization of General Motors and Chrysler, or the moratoria under which hundreds of large and small energy firms were forced to stop drilling in the Gulf of Mexico and on land in places like Wyoming?

"Also, an explosion of new anti-business regulations to further hobble the economy is coming soon, thanks to Obama-Reid-Pelosi policies. As ATR's Grover Norquist told The Examiner, 'You don't know what the law will be next month, or if you will even be allowed to own your business. The only thing you can be sure of is they will raise your taxes. You would be a fool now to go out and hire somebody new.' "

Prediction:  Take away the Obama majority in both Houses of Congress in November, and private enterprise will get back into the game and re-ignite the sputtering American economic engine. 

How many days left before the election?  It can't come soon enough. . . 

Dodd-Frank: "The Economic Recovery Prevention Bill"

That handsome trio in the middle of the picture are my three least favorite people in Washington.

The one in the picture in the background is my very favorite person in Washington, and he's been dead way too long.

I dare you -- in fact, I double-dog dare you -- find ANYONE with an independent voice in America who thinks this piece of garbage is worth the 2,300 pages it's written on.  The Deseret News opined today. 

No surprise, they hated it too.