Category: Fiscal Policy

The Harsh Republican Reality of the Fiscal Cliff

I break from a majority of Republicans on the current fiscal cliff negotiations and believe the rate increases that Democrats are seeking should eventually be agreed to. More specifically I would support John Boehner signing on to taking the top bracket from 35% to 37-38% (short of the 39.6% Obama wants).

Of course the argument against doing so is the superior one—essentially that the Senate and the President want more money to spend while having not passed a budget in 3 years and having not yet put any real spending cuts or entitlement reforms on the table. But the two Parties have been at a stalemate over this issue for years and in my view the trump card is that last month they held the …


Waechter’s Final Pre-Election Weigh In: No Matter How You Vote, the Economy Will Not Improve

I cast my ballot early. I didn’t vote third-party and therefore my vote isn’t being wasted. It also isn’t going to matter.

Since 1990, the United States has run aggregate trade deficits above $8 trillion. This is funny, because in 1990 the M2 metric of currency supply was only $3 trillion. There should be nothing but dust coming out of the ATM machines. We have purchased entire merchant-fleets full of foreign goods, and paid for it by quite literally printing money.

Foreign countries, being more blatant about their currency devaluation policies, have been willing to go along with this arrangement. The result is this dynamic: The US prints dollars to buy goods from China, and the Chinese central bank prints yuan to buy the dollars. …


2nd Presidential Debate: Complete Re-Cap & Analysis Of A Dynamic Evening

Following a week and a half of Democrats either piling criticism on President Obama’s first debate performance or making excuses for it, few could question that tonight the Country’s microscope was squarely focused on our 44th President.  Would he over-correct and turn voters off by being too aggressive?  Would he be able to effectively go on the attack in the Town Hall format?  How will he handle personal questions from the very people struggling due to “his” anemic economy?

After the dust settled tonight, not only were these questions and the 11 questions the audience asked answered—we might have just gotten the answer to the biggest question of them all.  Let’s jump right in.

President Obama (Art Smith)

Last night’s debate proved to be much …


Vice Presidential Debate: Recap and Analysis

Though few would have predicted it two weeks ago, going into tonight’s Vice-Presidential debate the real pressure to perform was squarely on the shoulders of Joe Biden.  This prospect was clearly one that Republicans across the Country have been giddy about in the days leading up to this debate—but tonight the meltdown they were hoping for didn’t happen.  Joe Biden performed well, avoided any big gaffes, and the two candidates essentially dueled to a near draw.

Paul Ryan (Justin Arnold)

As mentioned in our prior debate analysis, we focus on themes because they are the messages that each candidate comes in with for a reason.  These are the issues and messages they have determined will move the needle in their favor and each candidates …


Latino Heritage Festival: A Time of Celebration & Time to Consider Who Best Serves Latinos

(The following piece is a guest writer contribution from Chad Brown)

Iowa’s Latino Heritage Festival is celebrating its 10th anniversary this year and has grown into the largest cultural event in our state.  This is a family event that offers something for everyone.  It is a time of celebration.  I also feel it is time to engage in an honest conversation.  I want to present my argument for why the Republican Party is the best Party to advance the best interests of Latinos in our city, state and country.

We are witnessing the progressive growth of Latino businesses in Iowa. They generate millions in sales every year and create thousands of jobs for Iowans.  Latino businesses are among the fastest growing   segments of the small-business-community …


The American Socialist Commonwealth (Part 2 of 2)

(This is the second installement of a 2 part piece, click here for part 1)

Former Hoover Institute Fellow Antony Sutton surmised that there were three species of socialism: Bolshevik socialism, state corporatist socialism, and welfare state socialism. All three shared one common premise – government involving itself in the planning and organization of the economy.

In Bolshevik socialism, the state owns all means of production: Farms, factories, mines, timberlands, and everything else that produces consumer or industrial goods. The decisions about what to produce come from a centralized committee dedicated to planning the economy. In this form of socialistic economy, we see things like the Soviet GOSPLAN, the organization tasked with writing the Five Year Plans. Another example would be Mao’s Great Leap …


The American Socialist Commonwealth (Part 1 of 2)

In 1920, as socialist parties held power in Germany, Austria, Hungary, and Russia, it appeared that the world following World War I would be a world built by socialist planning. Ludwig von Mises, the Austrian economist, thought that a socialist world simply wouldn’t do, and put pen to paper to explain why. The result was Mises’ first published article, “Economic Calculation in the Socialist Commonwealth.”

Mises’ premise was really quite simple; in a socialist economy, things that are used to produce other things are controlled by the state, which means that investment in production goods no longer involves price comparisons. In a socialist system, the planners decide that more tractors should be built, and order factories to build them.

Socialist administrators can …


Failed Policies of the Last Century

(The following article was written by Peter Vessenes and contributed via Kassandra Kuehl)

On Saturday, September 1st, President Obama accused Mitt Romney of retreating to policies from the “last century” and “sticking it” to the middle class.

Is this really the case?  Whose policies exactly have “stuck it” to the middle class?

Why not go back to the Great Depression as a starting point?  After all, we are in a “Recovery” that looks a lot like that time period.  Which “policies” began there?  Perhaps the largest was Social Security.  After all, Social Security was a Democrat Party program that promised the government would “set aside” retirement, or safety money for people when they reached 65 years of age.   Unfortunately, the average life expectancy at that …


Tax-Exempt Municipal Bonds Must End

In his autobiography, Calvin Coolidge singled out tax-exempt bonds as a travesty; idiotic, improper, probably immoral, and something which needed to be addressed.

Firmly believing that all the income of the nation had to be treated equally (and that public debt was hostile to liberty) Coolidge decried this special treatment, stating point-blank that it provided a way for the wealthy to hide their income from taxation, made it too easy for local governments to amass debt, and benefited local politicians and the buyers of their bonds all at the expense of the taxpayers who had to cover the interest on the debt.

In Coolidge’s day, the courts had ruled that the Federal government didn’t have the power to tax municipal bonds – cities are incorporated …


Uncle Sam, King Corn, and Emergency Legislation

This summer has been warmer than average.  Living in Minnesota, the Midwest is known for being tolerable of all kinds of weather, but this summer has been unique.  One of the hardest-hit commodities, corn, is playing a critical role in our food chain and even more so, our pocket book.

I am a city gal who grew up in a small farming community, and when I dial back home, many farmers are in fear and apprehension of how long last years corn yields will last, due to the brutal 2012 summer drought.  This year’s crop yield is on track to be the worst in 15 years, and corn prices have already hit record high levels.   Almost 90% of the United States’ corn crops are in …