Wednesday, February 4, 2009

Big Picture

Why do I get the idea that many members in Congress really do not see the "big picture" in this economic crisis? Maybe it is because my idea of the "big picture" and theirs are entirely different. Let’s review the basic reasons why we are in this mess. A couple of things were happening almost simultaneously. The "housing bubble" finally did break, as almost everyone knew that it would. (Perhaps with the exception of some influential members of Congress) Greedy financial institutions made thousands of bad risk loans that started to fail like a cascade of dominos. The housing market collapsed, as did many financial corporations. Within a period of four months we went from economic prosperity to financial meltdown and who is left holding the bag? It is you and me, right?
The cascade effect of the collapse of the housing market and the financial industry has led to business closures and job layoffs that have thrown our economy into chaos and turmoil. Personal confidence in the economy and in the government is perhaps at an all time low.
To help staunch the flow of economic "blood" 700 billion dollars was earmarked to help the financial industry get back on its feet. We were led to believe the money would ease the credit crisis making it easier for taxpayers to get loans for "big ticket" purchases. How is that working for you? Have you felt positive effects from any of that $750 billion? Has the stock market?
If the government was serious about addressing the root causes of the current economic crisis what else should they have immediately addressed with some serious financial help? It is the housing industry and the creation of jobs, right?
So now Congress is engaged in another battle to somehow stimulate the economy. A "stimulus" package, over 800 billion dollars made its way through the House of Representatives. Remember now that this new financial package was initially labeled as a transportation and infrastructure investment package. Guess how much money was directed at road and highway and infrastructure spending? $90 billion is the figure according to the Committee on Appropriations. It is true that this and other line items could be seen as "job creation." But as you look though the total "stimulus" package less than 25% of the $800 billion could be consider job stimulus. This is stunning. What caused the economic chaos to begin with? How much was devoted to stopping the flow of "blood" in the housing market? None that I could see.
But instead some of the geniuses in the House of Representatives saw this as an opportunity to fund some of their favorite projects. Some, but not many of these projects have intrinsic value and should be addressed. BUT those projects and hundreds of others cannot be construed as economic stimulus no matter how fast some members of Congress talk. It is an outrage. It is absolutely unconscionable that millions of dollars has been earmarked for the purchase of new governmental cars and new furniture for offices. $10 billion has been designated to improve science facilities, $6 billion to provide Internet access for rural areas, $120 billion for educational aid to states, and $54 billion to encourage renewable energy production. Again, some of these are worth financial support but what on earth are they doing in a "stimulus" package?
This "spending" plan, let’s call it what it is, will have little impact on the "big picture" causes of this crisis. If Congress is going to get serious about economic recovery they had better address the root cause of our financial collapse. Rebuilding a strong housing market and the actual creation of jobs is critical. The Congressional Budget Office has said that the job creating plans that do exist in this spending legislation will cost the taxpayer $100,000 to $150,000 per new job that is created. The average income in the U.S. is $42,000. Now how much sense does that make? Surely there has to be better ideas to create new jobs.
One plan to help deal with the housing crisis (remember the big picture) proposed by a couple of Senators that does make sense (which means that it will probably go no where in the Senate) is that a huge part of what could then be called a stimulus is to offer a 4% interest rate for home loans both new and old. On average that would put about $450 dollars a month back into the pockets of homeowners. Now that is a serious stimulus. What do you think?
Did you know that your phone call could be the one that pushes a Senator or Congressman back toward addressing the big picture? We literally cannot afford to let them mess this up. The massive bill for all this spending is going to eventually land in your lap and that of your children and grandchildren. Don’t wait another day. Pick up the phone today.
Lin Goodyear

Thursday, January 29, 2009

Change...Yes Economic Revival... Not So Much

Change…Yes Economic Revival…Not So Much
Our President and the huge Democratic majority in Congress were elected into office under the well-publicized banner of change. It was promised that one of the first acts of the new Congress and President Obama would be to pass an economic stimulus bill that would create jobs and jump-start a deeply troubled economy.
To be fair President Obama inherited a mess of an economy and an ongoing War on Terror among other challenges. The former President Bush and his cabinet should have seen the current economic crisis coming and done something about it two or three years ago. Yes, it is true that at some congressional hearings the former Federal Reserve chairman Alan Greenspan warned the committee that Freddie Mac and Fannie Mae (home mortgage guarantors) were on the brink of collapse but no one appeared to listen. At this point the President should have made a big public statement about the problem. But he did not and we are now in a financial pickle partly because the crisis stretched far beyond Fannie Mae and Freddie Mac and extended to major financial institutions that were also on the verge of collapse.
Success for President Obama will be defined by his ability to lead the country out of a troublesome recession. Unfortunately the economy could get even get more ugly and President Obama’s high popularity could disappear into the mists of discouragement and impatience.
For President Obama success will be defined by a dramatic turnaround of the economy. To the credit of the former president, while the "ball" was still in his court efforts were made to turn the economy around. A hastily formed 350 billion dollar "bailout" of financial institutions was formulated, passed by the Democratic majority in Congress and signed by the former President to help alleviate the crisis as the Stock Market crumbled.
From your perspective as a reader and as a taxpayer how is the economy doing? Exactly how has that bailout worked for you? Have those billions of dollars improved the state of the economy and your life? Do you actually believe that Congress would spend your tax dollars well? Did you know that confidence in Congress is at a historic low? The promise made with the bailout was that eventually those dollars would trickle down into more available credit for everything from home mortgages to the purchase of cars. Do you see any signs of that happening?
Billions of your future tax dollars have been poured into financial institutions with very few strings attached and little or no accountability for executives who were in charge. Doesn’t it bother you that those who could have made a difference and didn’t are getting off with little or no consequence both in Congress and in many financial institutions? Doesn’t it bother you that there are sitting members of Congress who have been charged with serious legal and ethical misconduct and yet nothing has been done to hold them accountable? (Charley Rangle, for one) Our new Treasury secretary failed to pay over $40,000 in taxes. His excuse was pretty lame and yet he was approved to take his post.
Why do we not have higher standards for leadership in this great country? If standards are low what are we likely to get as a result? Low or subpar performance, right? The evidence is clearly seen in the work of Congress. Are we so desperate for qualified leadership that we have to set the bar of ethical conduct at such a low level? Unfortunately America, that seems to be the case.
As I look at the new presidential administration and the President’s extensive promises and plans for change economic success is not going to come easily or quickly. And isn’t it interesting, perhaps disappointing is a better word to hear the President and ranking members of Congress "water down" or dilute those campaign promises?
What major campaign promise of now President Obama sticks out for you? For me, it was the pledge to end "pork" or special funding in the Federal Budget. I understand now how the President plans to honor that promise. All the "pork" is in the "stimulus" bill.
Congress has just passed an economic recovery bill in excess of 825 billion dollars. Congress doesn’t seem to understand that this is not Monoply money that we are talking about. People like Jack Welch, the former CEO of the once extremely successful General Electric Corporation believe that the so-called stimulus package is not geared for substantial job creation but for funding special social projects that have little to do with stimulating the economy.
Analysts have estimated that only 21% of the "stimulus" bill can even be remotely connected to the creation of new jobs or to the highly propagandized plans to rebuild the country’s infrastructure. Instead we have billions of your dollars designated for buying new cars for Congress, for modernizing higher education, for new science facilities and equipment, for bailing out state governments, for anticrime initiatives and for funding "global warming" research. Are you aware that the latest research done over the last 3 years clearly demonstrates that the earth is not warming but is in fact getting marginally colder? Why are we spending millions of dollars for a problem that doesn't exist except in the minds of some misguided people and a former Vice President who are unwilling to look at recent research. Why? Because it doesn’t fit their agenda.
You can call this 825 billion bill many things but it is anything but a stimulus package. The reason why this bill was fast-tracked through Congress is that no one wanted you, the taxpayer, to have the time to take a good look at the spending proposals. If politicians were honest they would call it what it is; it is a massive spending bill for favorite social programs. Less than half of the money can even be remotely connected to economic stimulus. Don’t take my word for it. Go online and download a copy for yourself. I did and it is a staggering read. Again it is not a "stimulus" package, it is a spending program that may lead us to an economic apocalypse.
It was Thomas Jefferson who said it best. "A government that is big enough to give you everything you want, is big enough to take away everything that you have" to support what Congress wants to spend.
Do we not ever learn from the mistakes of history? No country has ever spent their way out of a deep recession. In 1990 Japan was in the midst of recession and the government passed a series of "stimulus" bills over eight years to deal with their crisis. They built what was at that time the largest national debt in the industrialized world. (America has since taken over that honor) What was the result? Their economy remained stuck in the dark mire of debt, joblessness and discouragement. That country went from one of the highest per capita income levels to the tenth.
Why can we not learn from their experience? Massive spending programs do not work. It is apparent that neither the President nor a majority in Congress is willing to take a serious look at past history. Here it is in a nutshell. What didn’t work in Japan in the 90’s or during the American Great Depression in the 30’s will not work today. History screams that simply pouring money into a deeply troubled economy is a bad idea and has been a colossal failure.
Evidently our financial crisis is so different now that our elected officials are convinced that it will work this time. But is it? Believe me, plans are in place to increase taxes to pay for all this spending. Personal and business taxes will increase, substantially for some. Has there ever been a time where a government has successfully spent and taxed their way out of economic crisis? Imposing higher taxes in the 30’s was a terrible idea. Businesses closed left and right and unemployment shot through the roof. Recently it was announced that Circuit City is closing its doors. Some other major companies are "laying off" people by the thousands. (50 thousand in one day) Increasing the tax on these business is certainly going to encourage them to employ more people, right? Absolutely not!! But a huge personal and business tax increase is a major part of future plans. Does that make sense?
What was the problem that led up to the Great Depression? And is it similar to what is going on now? Why did the financial system fall apart in the 30’s? Was it because the systemic causes of the economic collapse were not adequately identified and addressed? We emerged from the depression not because of anything the government did during the "New Deal" but because our country was drawn into worldwide conflict. Historians today say the New Deal was a raw deal for the economy.
Are the plans of our new president and an emboldened Congress to stimulate the economy on the right track? Or will recent history simply be repeated? The President’s plans for success hinge on the bet that by pouring trillions of future taxpayer dollars into the economy, by continuing to "bail out" irresponsible lenders and executives and businesses (the automobile industry) the economy will turn around. Recent history doesn’t support that bet at all.
Congress has never had a good record for spending tax dollars well. They spend money on well-intended social programs that turn out to be a complete failure. The welfare debacle of the 70’s and 80’s is a classic example. Socialism doesn’t work. The history of our country clearly demonstrates that the free enterprise system does work, that encouraging businesses to grow, to add new employees, to develop and market new products stimulates the economy.
But here we go again as Congress gears up with another effort to spend and then tax America’s way out of financial crisis. Is this the kind of change that you want? Again, has it ever worked? It is my bet that unless the systemic causes of our current economic crisis are not addressed we will be pouring trillions of dollars down the proverbial "rat hole." Don’t you agree? From my perspective there are three root causes for our economic crisis; they are incompetence in Congress, lack of oversight in financial circles and greed.
We appear to have the needed regulations govern financial institutions but congressional oversight is sadly lacking as we have seen. Congressional leaders have shown themselves to be inept at best in providing oversight. From what I have seen Congress is incompetent in the handling taxpayer money. They should be the last people to provide oversight, but for now that is their job and they have done it poorly.
Another root cause is greed and self-interest both in Congress and in our financial institutions where executives are seemingly rewarded millions of dollars for leading their companies into financial chaos. Now what on earth is that all about?
Just recently it was revealed on the news that Barney Frank, one of the guys who controls the purse strings in Congress, made sure that a failing bank in his home state received 12 million dollars as part of the bailout. Isn’t this part of another problem in Congress, elected officials who make sure that pet projects are funded? Frank’s rationale was fascinating. He essentially said that since the government put the bank in the tank, the government should get them out.
Again didn’t President Obama say that he would get rid of "pork" spending? Isn’t the 825 billion dollar spending bill mostly about spending money on social projects and not about turning the economy around? At this rate success will elude President Obama for a long time. I predict that within just a year or two America will turn on the President and Congress like a pack of rabid and very hungry dogs. And it won’t be pretty. The kind of change that President Obama and Congress are now implementing does not have much chance for success. And you know what; I sincerely hope that I am wrong.
Lin Goodyear

Monday, January 26, 2009

The Disintegration of Religious Freedom

The Disintegration of Freedom of Religion
Every couple of generations or so we are privileged to be a witness to monumental social/cultural change in America. In the 60’s and 70’s it was the Civil Rights movement, a movement that is yet impacting our culture.
In this the first decade of a new century we are bearing witness to the demise of one of our most fundamental rights. Religious freedom is slowly becoming an "endangered species". I have been troubled by the numerous limitations being put upon religious expression; the court decisions about school prayer, religious symbols in or around government offices and the recent debate over Intelligent Design. The very government that was established to protect our rights as described in the Constitution is now denying religious freedom in various public arenas. Precedents of law (high court decisions) have been established to protect the rights of a small minority of people who either oppose religious freedom or have a life structure that has no room for God or for various expressions of religion.
The First Amendment to the Constitution was written to protect the basic rights of everyone not just a minority group.
"Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances."
Time and time again we hear people citing "separation of church and state" as a rationale for excluding religious expression as if it were a part of the Constitution. Do you see the phrase "separation of church and state" anywhere in this amendment to the Constitution or in the body of the Constitution itself? Is it found in the Declaration of Independence? The answer is No!! Where then did it originate? It arose as an explanation to a series of judicial decisions that have led us to the point where the words "religious freedom" are almost a joke. About the only place where religious freedom is truly free is in our homes, churches, synagogues, temples or mosques.
Thomas Jefferson who wrote the Declaration of Independence said, "Freedom of religion, freedom of the press….these are principles that have guided our steps through an age of revolution and reformation."
What were our Founding Fathers concerned about when the first amendment was established? England had a terrible and bloody history, in part because the country had various "state" religions forced upon the people. The Founding Fathers did not want a "national" religion. They believed everyone should have the freedom to choose a religion….or not. As the amendment was debated and shaped they did not put any limitations on free religious expression. They didn’t but our judicial system has.
In just the last 50 years lawyers and judges in various courts all over the land including the Supreme Court have taken it upon themselves to define what the Founding Fathers meant by "Congress shall make no law respecting an establishment of religion." Those decisions that have become the Law of the Land have systematically undermined the free expression of religion in public schools, public buildings (government) or almost anywhere someone might be offended.
Non-religious or atheistic fringe groups file lawsuits over almost any reference to God in any sense and they have won time after time. Keep in mind that the numbers of these people who oppose religious freedom are incredibly small. Yet their rights somehow supercede yours and mine. A "constitutional congress" was not established to review or to change or to re-define these traditional religious rights. Our judicial system at the behest of the American Civil Liberties Union and other like-minded groups have taken it upon themselves to battle the religious foundation of our country and to build a more libertine and irreligious mindset amongst its people. And they are winning the battle. Prayer, even non-sectarian prayer at school graduations, at sports events and etc. is prohibited. What happened to our religious freedom? Crosses and religious signage of any sort is being removed from public property. We have all heard of incidences where, for example, the vast majority of a community approve of a cross resting atop a city water tower; only to have it removed because a few people objected.
Abraham Lincoln wrote, "The assurance of our nation’s safety is to lay our foundations in morality and religion."
My concern is this. We have all witnessed a sizeable cultural shift that appears to have a relationship to the demise of religious rights that existed just a few decades ago. We have all seen significant erosion of morals and ethics in this country and it is frightening.
In the Declaration of Independence we find these words:
"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain inalienable rights, that among these are life, liberty and the pursuit of happiness. That to secure these rights, governments are instituted among men, deriving their just powers from the consent of the governed. That whenever any form of government becomes destructive of these ends, it is the right of the people to alter or abolish it, and to institute new government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their safety and happiness."
Are we drawing close to the time where we must, once again, become angry and frustrated enough to admit that our religious rights are being reduced through judicial fiat? The Judiciary is part of our Government. Have they overstepped their bounds? Our religious freedoms are being destroyed piece by piece. I no longer consent to what is being done to our freedom of religion. Do you?
Pastor Lin Goodyear