July 25, 2011
The false narrative is that the Tea Party is a bunch of stubborn nuts, if not outright racists. In truth, the Tea Party has been right about everything, while almost everyone else has been nuts, especially the "experts."
Minimum wage. One of the first things Democrats did after taking back Congress in 2007 was raise the federal minimum wage 41% from 2007 to 2009. Result? The unemployment rate went from 4.4% in May 2007 to 10.1% in 2009. It is 9.2% even today -- four years later.
As for teens, the unemployment rate went from 14.9% to 27.1%, the highest ever recorded, meaning since 1948. Today it is still a high 24.5%. And for blacks: from a low of 7.9% in 2007 to 16.5% in 2010. It is still a high 16.2%.
The Democrat Congress also decided to apply the same minimum wages to American Samoa. Results? Near-decimation of its economy, one that had been based largely on low-cost tuna canning and textile work.
... employment fell 19 percent from 2008 to 2009 ... tuna canning employment fell 55 percent from 2009 to 2010... Average inflation-adjusted earnings fell by 5 percent from 2008 to 2009 and by 11 percent from 2006 to 2009.Of course, some of the increase in unemployment was a result of the Great Recession. But the Employment Policies Institute did a study to separate the effects for the most vulnerable group: males aged 16-24 without high school diploma. EPI's answer: the minimum wage increase killed over 100,000 jobs (31% of the lost jobs) for that demographic.
TARP. Unless you were a politician or executive of a large bank, you were likely against the Troubled Asset Relief Program. I would guess that most anyone now calling herself a member of the Tea Party was against TARP in 2008. But Senator Barack Obama voted for it, along with most of his Democrat colleagues. Also the top brains of the Stupid Party pushed it: Henry Paulson, George W. Bush, and John McCain.
On October 3, 2008, Congress authorized Treasury Secretary Paulson to use up to $350 billion under TARP to do what was needed to stave off financial disaster. By December, after using $267B, Paulson said he was done, crisis averted. (Of course his successor, Tim Geithner, was not done.)
Here's the funny thing: while Paulson was lending out less than $0.3 trillion, the Federal Reserve was lending out over $16T to do about the same thing! By my calculations, Paulson's TARP slush fund was less than 2% the size of the Federal Reserve's.
Do you think that 2% was critical to staving off financial apocalypse? (FYI, over 3T of the Fed's emergency loans were to subsidiaries of foreign-owned banks.)
When the dust cleared, the federal government owned two bankrupt car companies and the god-awful home mortgage portfolios of Fannie Mae and Freddie Mac -- entities that had nothing to do with the original purpose of TARP.
Global markets were so enamored with TARP that there was an immediate sell-off of about 20% in global stock markets the moment it went into effect. I also credit TARP, and McCain's reaction to it, for McCain's loss to Obama. Ever since, all budget discussions have involved units of trillions instead of mere billions. The world has not been the same since TARP.
Stimulus. Opposition to Obama's stimulus was the origin of the Tea Party. Now we know the story.
How the stimulus was sold: It would create three million jobs or more. It would keep the unemployment rate under 8%, instead of 9% without a stimulus. It would cost $787B. The jobs were shovel-ready.
What really happened: There are 1.2 million fewer jobs now than when the stimulus was passed. Unemployment went over 10% (vs. prediction of 8%) and is still over 9% (vs. prediction of about 6.8% at this time). It cost $814B or more. Maybe 6% of it went to infrastructure projects. Obama's reaction? A little joke: "Shovel ready was not as shovel ready as we expected."
Of course, Obama and his minions simply blame this on their underestimating the size of the mess they inherited from Bush. But that has been studied by economists at the University of Western Ontario and Ohio State University. The verdict: the stimulus itself cost about one million private-sector jobs; the net job loss was about 595,000. We'd have been better off without any "stimulus" at all, just as the Tea Party said.
ObamaCare. ObamaCare was sold as a way to bend the health "cost curve" down. As it turned out, it is bending the cost curve up -- health care will be more costly than it would have been without ObamaCare. It's so great that in its first year about 1,500 companies, states, and unions were granted waivers.
ObamaCare strangled the recovery in the crib. The private sector has been generating only 6,400 jobs per month since it was passed, compared to 67,600 before. We would never return to pre-recession unemployment levels at the current pace. ObamaCare is costing us over 60,000 jobs per month.
Drilling moratorium. According to a new study by IHS Global Insight, merely picking up the pace in granting oil drilling permits would go a long way in producing jobs throughout the US, adding to GDP and reducing dependency on foreign oil sources. In 2012 alone it could mean 230,000 new jobs, $44B more in GDP, 150 million more barrels of oil, and $15B less in imported oil.
Budgets. Now we find ourselves in another budget fight, with the Tea Party getting the blame from much of the media and liberal punditry. The truth is that Democrats have not even written, much less passed, a budget of any kind in over two years; they simply kill everyone else's.
- The Republican-led House passed a budget on schedule in April. Senate Democrats voted it down.
- Obama proposed a budget in February. The Congressional Budget Office scored it as having a 10-year cumulative deficit of $9.5 trillion. The Democrat-led Senate voted that down too, 97-0.
- The House proposed the only written plan for addressing the debt ceiling -- the Cut, Cap and Balance plan. Senate Democrats voted that down, too.
Uncertainty and arbitrariness. Just last December Obama said keeping Bush's tax rates was critical to keeping the recovery going. He and the Democrat Congress at the time extended them for another two years, plus added over $300 B in additional tax cuts and credits. Now, just seven months later, Obama insists that any deal to raise the debt ceiling must include tax increases.
Like ObamaCare, the Dodd-Frank bill to regulate all finance in the country is a thousand-page-plus piece of legislation. As the New York Times understated it just after its passage, "[a] number of the details have been left for regulators to work out." Got it? Those thousand-plus pages did not include the details.
The EPA now has power to regulate every use of fossil fuels in this country, as well as every breath we take, if they so deem. What will it do with that power? You get to guess. If you think it wouldn't do anything too stupid, know that the FDA just outlawed common inhalers for asthma sufferers. Their reason was, get this, those inhalers are blamed for contributing to upper-atmosphere ozone loss.
Even if you think CFCs contribute to ozone loss, how much do you think the CFCs released by asthma inhalers have to do with it? And how much is the indirect and ambiguous loss of ozone worth compared to the direct and known suffering of asthma patients? Such is the wisdom of government regulators.
The list is endless. If you were thinking of starting a business or making an investment that might not pay off for five or ten years, would you feel like you know the rules and could depend on them? No, you'd hunker down, which is exactly what everyone with any money left is doing right now.
This jobless recovery is not some mystery. It is very clearly the result of decisions -- decisions made by Obama and the Democrats. At every opportunity they grew government, shrank the private sector, and viewed budding enterprises as little more than beasts of burden -- something to whip while healthy and carve up and eat when not.
As Robert Mugabe viewed white-owned farms, Obama views corporations not yet in Chapter 11.
Nothing Democrats did helped; everything they did hurt. Everything. Min wage. TARP. Stimulus. ObamaCare. The Gulf oil spill. Every budget they ever proposed, written or not. Every little czar they put in place to spend other people's money and to bully the only productive people still toiling away at the thankless tasks of making stuff and providing jobs.
At every point, the Tea Party and its sympathizers tried to stop these idiocies, only to be called ignorant racists. You might want to ask yourself why so many people talk of the "Tea Party," whatever that is, the way Lenin and Stalin talked of kulaks and saboteurs, whoever they were.
Do "taxed enough already," "stop spending," and "obey the Constitution" sound that crazy to you? If so, you might want to think about why you think so.
Randall Hoven can be followed on Twitter. His bio and previous writings can be found at randallhoven.com.