Source: http://demint.senate.gov/public/index.cfm?FuseAction=PressReleases.Detail&PressRelease_id=871efa24-ccdb-58b4-babe-6277017cdd01&Month=11&Year=2008&Type=Op-Ed
November 10, 2008
They say that elephants never forget, but that's exactly what the Grand Old Party has done.
Between the 1950s and 1970s, Rockefeller and Nixon Republicans kept the party in a seemingly permanent minority with a "me-too" philosophy that allowed Democrats to balloon the size and scope of government.
But, when Ronald Reagan ran unashamed on conservative principles in 1980 and Republicans in Congress embraced bold conservative reforms in 1994, America responded with overwhelming approval.
Since then, many Republicans have run for office as conservatives but governed as scandal-plagued big-spending moderates. They stopped offering common-sense solutions and broke promises with Americans by overspending and wasteful earmarking to special interests.
In the name of bipartisanship, our leaders supported amnesty, big new entitlements, more federal control of education, and compromises on energy. And too often Republicans shied away from defending values of life, family and faith.
The final straw for many was a series of Wall Street bailouts that cost over a trillion dollars and looked more like knee-jerk socialism than confident conservative leadership.
No wonder Republicans have lost a dozen Senate seats and nearly 50 House seats in two years.
Democrats will likely mistake Republican failures as a mandate for their liberal policies. Obama promises to "spread the wealth" and repeal all restrictions on abortion.
Nancy Pelosi wants trillions in new federal spending. Barney Frank promises higher taxes and massive military funding cuts. Harry Reid will kill the secret ballot for union elections. Patrick Leahy yearns to pack federal courts with activist judges who are hostile to traditional values.
Americans know little about these far left plans because Democrats didn't run on their liberal agenda, they ran against George Bush.
Yet, a strong majority of Americans are conservative and support the principles of freedom our nation was founded on.
The bipartisan Battleground Poll has found every year since 2002 that 60 percent of Americans identify themselves as conservatives and only 30 percent call themselves liberals. That's why Obama and the Democrats talked so much about conservative themes of tax cuts, spending restraint, second amendment rights and energy independence.
Americans haven't changed, Republicans have.
Recent Republican leaders said earmarks proved we could deliver for our districts and higher spending demonstrated our compassion. But a recent Club for Growth poll found that 66 percent of Americans favor candidates who will cut federal spending even if it means less local funding.
They said fighting for values that strengthen families and protect life is outdated, but ballot propositions to protect traditional marriage still pass overwhelmingly, most recently in California. Numerous polls on abortion reveal most Americans value life and want fewer abortions.
Republicans can regain America's trust only by acting on our conservative principles and offering real solutions.
First, we must lead by example and limit our own power in order to guard against corruption, starting with a unilateral, two-year earmark moratorium.
Then, let's end the seniority system that turns too many Republican outsiders into Washington insiders. This requires term limiting our conference leader and appropriations committee members, then choosing committee heads on merit, not seniority.
Second, Republicans must reestablish ourselves as the Party of Ideas with new, principled solutions for today's challenges. We offer more jobs, more take-home income, and more opportunity to succeed.
We offer more choices, personal control, and better quality in health care, education, and retirement. We offer more protection of life and the family, freedom of political speech, and respect for the right to bear arms. As global threats increase, Republicans offer a stronger national defense and secure borders.
Third, we must do everything in our power to stop President-elect Obama, Speaker Pelosi, and Senator Reid from enacting liberal policies that reduce freedom. Democrats and Republicans should work together, but not when it hurts the American people. As the minority, we don't control the Senate agenda, but we still have a moral responsibility to fight for freedom and liberty in our great country.
Finally, we must recruit new leaders. We're never going to reshape the way Americans see Republicans with the same old faces. There are good conservatives in Congress now, but our bench is not nearly as deep as the Democrats, who have plenty of career politicians.
We need more Sarah Palins - moms, dads, teachers, doctors and business owners who want to defend liberty and solve big problems, not become part of the Washington establishment. We must find them, encourage them and fight for their elections.
These are painful times for the party of Lincoln and Reagan, but we have a golden opportunity to demonstrate its character and its convictions, and rebuild stronger than ever. So let's get going.
Tuesday, November 18, 2008
Republicans Must Fight for Freedom to Regain America's Trust by Senator Jim DeMint
We've been here before, indeed by Paul Mirengoff
Source: http://www.powerlineblog.com/archives/2008/11/022076.php
November 15, 2008
In a post called "We've Been Here Before," John wrote about the need "to develop policy approaches that have unified, conservative themes; that can appeal to voters who are not already committed conservatives; that build on the experience of successful application of conservative principles to the problems of prior generations; [and] that hold out a real hope of tackling our intractable problems. . . ." I'm all for this project, of course. I write only to argue against the view that the project is necessary for future electoral success.
The Democrats won't be ousted from power when the Republicans develop great conservative policies with cross-over appeal; the Democrats will be ousted when the electorate concludes that they have screwed things up. For this reason, the real case for formulating new conservative policies is that such policies will help Republicans/conservatives govern better when they return to power, not that they are likely to hasten that day.
Consider this year's election. The liberal Democrats did not return to power because of this or that domestic policy idea or because, more generally, they had conducted a sober reassessment of liberal dogma following prior setbacks. They returned to power, without having revised much of anything, because the electorate was sick of the Republican administration. This scenario is the rule in presidential politics, not the exception.
There are exceptions, though. In 2000, the Republicans recaptured the White House (albeit through an electoral fluke) even though the public wasn't particularly sick of Democratic rule. That year, it mattered that President Bush added some wrinkles, in the form of compassionate conservatism, to the traditional playbook.
Notice, though, that Bush was able to do this essentially on the fly. His new wrinkles weren't the product of soul-searching and intellectual ferment that began when the Republicans were swept out of the White House in 1992. The Republican response at that time, spearheaded by Newt Gingrich (a politician not a think tank resident), was basically to double-down on Reaganism. Only after Gingrich's revolution fizzled and it became clear that 2000 would not be a "throw the bums out" election, did Bush and his team cobble together the themes that would work in 2000. And a turn of a phrase ("the soft bigotry of low expectations"), not a detailed educational policy initiative, worked the magic. In other words, it was the quick ingenuity of politicians, not the deep, long-term thinking of intellectuals, that made the difference.
For better or for worse, Bush turned out to be serious about compassionate conservatism. Thus, once he was in office, this philosophy became the operative new approach that would incorporate conservative themes, while appealing to a new generation and offering potential solutions to intractable problems. Ironically, No Child Left Behind and the Bush prescription drug benefit plan might well have prominent places in the "new thinking" that certain conservative intellectuals have embarked upon, had these programs not already been enacted. Indeed, these programs are fairly popular and arguably successful on their own terms, whatever the ideological objections may be.
It is instructive, in any case, to recall that five years ago (give or take) more than a few conservative intellectuals had plenty of praise for compassionate or "big government" conservatism. When the praise died down it was mainly because Bush had become hugely unpopular for reasons having nothing to do with the demerits of compassionate conservatism.
The problem for conservatives, then, is not a lack significant new thinking since Reagan. The problem, rather, is two-fold: (1) some of the new thinking has been flawed and (2) for reasons mostly unrelated to the first problem, Bush's second term was quite difficult, and conservatives are viewed as responsible, at least in part, for the difficulty.
So by all means, let a thousand flowers bloom when it comes to thinking about applying conservative principles in new ways to difficult problems. Just don't let anyone sell you flowers on the premise that conservatives are doomed unless you purchase them.
Time to Look Ahead by Fred Thompson
Source: http://townhall.com/columnists/FredThompson/2008/11/17/time_to_look_ahead?page=full&comments=true
Monday, November 17, 2008
I’m sure after this two-year campaign everyone would like to take a deep breath and put aside politics for a while. The holiday season approaches. It is time for all of us to give thanks for the many blessings we have been given.
But our gratitude for life and liberty should also serve as a reminder that what we were working so hard to achieve these past few years still very much hangs in the balance. And it is up to each of us to continue that fight. Our participation as citizens of the United States does not end once we’ve pulled the lever in the voting booth. That ballot is just the beginning.
We are now living in a nation controlled by a Democratic Party committed to cutting the budget for our national defense, raising taxes and nibbling around the edges of our personal freedoms in the hopes none of us notices. Democrats will do it through regulation in the executive branch, legislation in Congress and rulings from the judiciary.
This activity will be taking place during a time when we know that somewhere in the world our worst enemies either have, or are trying to get their hands on, the most dangerous weapons known to man. Small rogue nations are developing nuclear weapons to threaten us and our allies. Some large nations are engaged in massive military buildups, while others seek to take advantage of our weakened financial condition to wage a kind of economic warfare that is only now possible because of our global economy. And all the while the greatest economic threat of our lifetime and our children’s lifetime—the bankrupting of our entitlements systems—will be ignored.
It’s not a pretty picture, is it?
But if the time I spent traveling around America the past 18 months has given me anything, it is hope. And it if has confirmed anything for me, it is this: America remains the greatest country in the history of the world, and our citizens who care about our nation’s founding values—freedom, free markets, respect for life and the rule of law—will not stop defending these values as much as some of our fellow citizens and leaders might wish they would.
The Democrats and their P.R. machine known as the “mainstream media” liked to talk about 2008 as an election about “change.” Well, let me tell you, by their nature, every election is about “change.” In fact, responsible change is the essence of conservatism. We must change in order to preserve what is best about our country. We have always been able to accommodate constructive change without turning our back on our first principles.
But now, we should admit that we didn’t do a good enough job of holding our elected officials accountable over the past few years when spending got out of control, and we seemed to lose sight of the policies grounded in our first principles. It’s going to be a high price we pay, but we must not lose sight of what we must be doing now: fighting for conservative change we want today—and tomorrow.
We are going to have to use every tool we have—grassroots organizations, think tanks, magazines, talk radio, the Internet—while building new institutions to blunt the efforts of a left-wing establishment that appears willing to use uncertainty to impose an agenda that would never see the light of day in normal times.
The challenge will be to fight the Democratic instinct to let government meet every need and solve every problem and to divide our nation by class and race, while also laying the groundwork for the kind of historic mid-term election we achieved in 1994.
We gained those victories with a focus on innovative, free-market, pro-freedom, policy solutions to issues like welfare reform, promising to cut spending and balance the budget, and recruiting a host of talented, young (and perhaps not-so-young) men and women willing to step into the arena and run for office.
We have the formula—a conservative formula—that has worked before and will surely work again. It is grounded in our first principles. It’s time we moved past the recriminations and seven stages of grief. It’s time to look ahead, to stay united and to defend the values that we know must endure if our nation is to do the same.
Fred Thompson has been a lawyer, actor and United States Senator. He writes exclusive analysis and commentary for Townhall Magazine.
Monday, November 17, 2008
The Four Hard Lessons of Campaign 2008 by Carol Platt Liebau
Source: http://townhall.com/columnists/CarolPlattLiebau/2008/11/17/the_four_hard_lessons_of_campaign_2008?page=full&comments=true
Monday, November 17, 2008
In the wake of stinging defeats in this year’s presidential and congressional elections, Republicans are now engaged in the difficult work of finding the way forward. Their mission is simple, but not easy: To rebuild their party’s brand by reworking and re-presenting its principles in a way that retains the indispensable – a commitment to liberty and justice for all – while developing fresh ideas, and fresh faces to articulate them. A painful but necessary part of the process also requires Republicans to identify and correct mistaken assumptions operative in the 2008 presidential campaign.
From the McCain campaign, it is possible to draw solid conclusions about what doesn’t work for Republicans. In the spirit of learning from the past to avoid repeating it, it’s worth reviewing some of the lessons of 2008.
1. It is impossible for any Republican presidential candidate to garner favorable mainstream media coverage, so long as s/he represents the more socially conservative electoral choice.
Certainly, the media’s swooning adoration of Barack Obama was unprecedented, and may in part have been attributable to the historic nature of his candidacy. But given that John McCain was once the most popular Republican with the press (and even jokingly referred to journalists as his “base”), he might reasonably have expected something more than the unremittingly hostile coverage that the mainstream media served up – even as his opponent enjoyed a largely free ride.
But here’s the fact: So long as Republicans represent the party of social conservatism, the press will always favor their opponents. John McCain’s popularity peaked when he was a competitor to (or thorn in the side of) the more socially conservative George W. Bush. Even this year, The New York Times’ primary endorsement of McCain represented nothing more than an effort to support him over the more vocally conservative Mitt Romney. As soon as McCain won the nomination – and became by default the most socially conservative choice for president – The New York Times unloaded all over him, bookending his campaign with a shoddily researched report on his alleged affair with a lobbyist and an ugly, deeply personal attack piece on his wife.
Going forward, Republicans must find a way to overcome the press bias favoring the more socially liberal candidate. Strategies for reaching over the heads of the mainstream media – whether by establishing an internet presence for the GOP, working more closely with talk radio, or crafting strategies to offer candidate interviews or breaking news to favorable (or at least fair) news outlets – must be among the party’s first order of business.
2. Campaign finance “reform” will always have a disproportionately negative impact on Republicans.
In one of politics’ great ironies, the campaign finance reform legislation that John McCain created ultimately crippled his campaign (especially after Barack Obama broke his word and declined public financing). Given the press’ liberal leanings, laws that stifle competing voices have a disparate – and negative – impact on Republicans, who need independent campaigns to counter the media’s influence and get the conservative message out. Unfortunately, McCain-Feingold has inhibited independent campaigns, thereby enhancing the press’ position as the dominant provider of political information to voters.
3. Republicans can’t win over Latinos through appeals on the illegal immigration issue.
John McCain never regained the support among rank-and-file Republicans that he squandered by his advocacy of McCain-Kennedy immigration “reform,” which would have effectively offered amnesty to millions of illegal immigrants. Whether or not it proved decisive in his defeat, the lack of enthusiasm among the base certainly hurt McCain.
So what did he gain politically from his advocacy of the “path to citizenship”? Not much. In fact, 67% of Latinos backed Barack Obama. Latino immigrants favored Obama by a 78% margin, lending crucial support in states like Indiana, Virginia and North Carolina. The moral of the story: Republicans will never be able to win over Latinos by aping Democrat positions on illegal immigration. Democrats support legalizing poor and under-educated people already in this country in the hope that they will become new clients of an expanded welfare state, and hence reliably Democratic voters. Mimicking liberal enthusiasm for legalizing illegal immigrants only puts Republicans in a perpetual “me too but less” posture that ultimately gains them nothing.
Certainly the GOP must do more to make sure that Latinos understand that their opposition to illegal immigration has nothing to do with hostility either to immigration in general or Latinos in particular; rather, it is about honoring the rule of law. But even more importantly, along with continuing their support for the traditionalist social positions embraced by most Latinos, Republicans need to explain why economic freedom and small government will do more than government handouts to help hard-working and upright new citizens achieve the American dream.
If Latino outreach becomes nothing more than a bidding war over government benefits, the Democrats will always win. What Republicans need to find is a message that helps the debate break out of that box – and the communicators to deliver it effectively.
4. “Mavericks” end up leading a party of one.
For almost his entire Senate career, John McCain prided himself on his status as a “maverick.” In doing so, however, he alienated a good number of regular Republicans who would have contributed more and worked harder to elect a candidate about whom they were more enthused.
“Mavericks” like McCain seek and welcome the support of independents. Unfortunately for McCain, however, independent voters are the ones who are most driven by events, rather than ideology. Had he run at the end of the tenure of an unpopular Democrat president, McCain might have been fine. Instead, he was left with a base that was more excited about its vice-presidential nominee than the presidential one, and a horde of independents who – in light of the financial crisis and the long, unpopular tenure of President Bush – decided to take a chance on “change.”
* * *
Whatever the flaws in the conception or execution of his campaign, certainly John McCain is a brave and honorable man who has served his country with distinction. Perhaps even in defeat, he may likewise do his party a service – if its members can learn the hard lessons his loss has taught all of us this year.
Carol Platt Liebau is an attorney, political commentator and guest radio talk show host based near Los Angeles. Learn more about her new book, "Prude: How the Sex-Obsessed Culture Hurts Young Women (and America, Too!)" here.
Saturday, November 15, 2008
Alaska Governor Sarah Palin's Concession Speech At The Republican Governors Association
November 13, 2008
Source: http://www.oregoncatalyst.com/index.php?/archives/1865-Transcript-of-Sarah-Palin-speech-before-GOP-Governor-Assoc..html
PALIN: Thank you so much. Thank you, Governor Perry. Thank you, Governors. Honored to be here. Get to speak with and to my fellow governors. It hasn't been that long, I think, since we all gathered, but, I don't know about you, but I managed to fill up the time. Let's see, I...
(LAUGHTER)
I had a baby. I did some traveling. I very briefly expanded my wardrobe.
(LAUGHTER)
I made a few speeches, met a few VIPs, including those who really impact society, like Tina Fey.
(LAUGHTER)
Aside from that, it was pretty much same old, same old since we last gathered.
But in the great campaign that has come and gone -- and it was great -- one of the nicer experiences that we had along the campaign trail was seeing so many of my RGA colleagues. And I thank you guys so for your assistance with John McCain's good run.
Each gave your all to the cause and were helpmates and positive additions to Senator McCain's good run. You were there to help when things were looking good and you were there to help when, once in a while, things weren't looking so good.
And where I'm from in Alaska, life would be pretty lonely if all we had were fair weather friends, and you have been friends in all seasons, and for that, I will forever be grateful. And I know Senator McCain also will be so appreciative.
Let me add that I was honored as well to have the support of a former RGA member, and his beautiful wife, who will soon return home from the White House to Texas.
In politics, people sometimes go to great lengths to avoid stating the obvious, but I think it's about time that we all remembered that the greatest measure of a president is whether he protected and defended this great country.
America's 43rd president took that foremost responsibility, that most important charge, seriously. He poured his life into it. He succeeded in keeping America safe from another attack.
I'm thankful he is my soldier son's commander in chief. And for that I say God bless George W. Bush.
And I thank you, Mr. President.
(APPLAUSE)
So reflecting on it all these last couple of months, obviously, a lot learned for all of us, all of us governors these past months. And I'm going to reflect a bit on that here and then express where I think that we can all move forward together as a result of what we've just learned.
When I was introduced in Ohio as our party's nominee, it was humbling, and I was proud to represent all of us. But on election night in Phoenix, after a hard and honorable defeat, I was more proud than ever to have been the running mate and friend of a great man, Senator John McCain.
Tens of millions of Americans shared our convictions and they gave us their votes. They shared a desire for a smaller, smarter government, and protection of our constitutional rights, and energy independence, and respect for life and equality, and I thank them for their confidence and those votes.
But for us, it was not our time. It was not our moment.
But it is our country. And the winner will be our president. And I wish Barack Obama well as the 44th president of the United States. And if he governs with -- governs with the skill and the grace and the greatness of which he is capable, we're going to be just fine.
And as he prepares to fill the office of Washington and Lincoln, know that this is a shining moment in American history. Senator Obama has achieved a great thing for himself and for our country.
Now, as we wish him well, and unite, as we all work together, it's time for us to reach out to this new administration. Time for us to reach out to Barack Obama, so that he'll understand our perspective as experienced chief executives, we, responsible for tens of billions of public dollars, and tens of thousands of employees, and policies and projects that do affect the lives of our constituents every single day. So that he will understand that bigger federal government and more unfunded mandates hurt the economy and our states and America's opportunities.
Republican governors understand this. That's why Americans look to us for leadership. And that's why we have seen election victories.
So let's reach out to Barack Obama. And this is how we reach out and help our country: showing how lower taxes provide opportunity for the private sector to grow new wealth, and let's embrace the federalist principle that lets local government, government closest to the people, have more say, local government being the most responsive and responsible.
We know that, because we live it on the front lines every day in our jobs. Let's help show him and Congress the way.
Look, we need to be greater participants in the monumental debates going on right now with the economic crisis that we're facing. We're hearing now more talk of additional taxpayer bailouts, for instance, for companies and corporations, perhaps even states now, who may be standing in line with their hands out, despite perhaps some poor management decisions on their part that helped tank our economy.
Republicans can help shore this up without getting any more addicted to OPM -- O-P-M, other peoples' money, spending it, when...
(LAUGHTER)
... when a lot of us...
(APPLAUSE)
... a lot of us just supported that first $700 billion bailout. We need to have a rational discussion. I look forward to a debate and Republican governors participating in this debate of what and when is enough enough.
I want our national leaders to expand the debate and talk about accountability and personal responsibility and corporate habits and activities called to account. We can start talking about the conservative solutions to these economic challenges.
Now, we can do this and we can lead in this discussion and in this debate, and we had better lead with ethics reform and an end to the self-dealing and corrupt special interests on Wall Street and in Washington that contributed to the housing crisis and elements of the economic collapses. And this has resulted in hardworking, middle- class Americans being the ones who really get the bum deal in all of this.
And we need to not be afraid of interjecting the solutions that we see based on free market solutions as those that can meet these great challenges.
Let's lead in this ethics reform effort. We got to clean it up and we got to end the corruption and the abuse once and for all. And, again, with free market solutions we need to start considering those, debating those, plugging in those solutions.
We want America to be able to trust their federal government again. And here I think the public's going to be looking to Republican governors to show them the way. And we have to reform. And we're able to do it.
Governors do things like, in terms of reform and manifesting our commitment to reform, we do things like putting our state checkbook online -- that's what we've done in Alaska -- so that everybody can see where every dollar's being spent. It's other peoples' money.
Federal government, they need to do the same thing. We need to be able to help our federal officials see what we do as governors that has led to reforms within our state and progress within our states, allowing our state governments to be put back on the side of the people. We've got to do that on a federal level.
Now, looking back on the campaign, it was such a journey -- such a journey for my family. It was -- it was wonderful.
But what a nice return we've had now to a place and to a life that we so dearly love in Alaska.
Along the trail, it was my husband, Todd, who was my right hand. And among his many willing -- winning qualities is the gift that he has of optimism and just thankfulness in all situations that he finds.
And going forward, I'm going to count on those qualities a little more, even. Because of course there was a disappointment after a loss in a national election like that. You run to win. You run the race to win.
It's kind of relying on Todd with that optimism and the thankfulness in all situations, that I'm certainly going to be there with him along those lines.
But far from returning to the great state of Alaska with any sense of sorrow or regret, we carried with us the best of memories and joyful experiences that really do not depend at all on political victory.
For years to come, I'm going to remember all the young girls who came up to me at rallies to see the first woman having the privilege of carrying our party's vp nomination. And they inspired me.
With an extra hurdle or two in front of us and in front of these young girls, I feel that we've got this mutually beneficial relationship now -- me and these young girls -- where we're going to work harder, we're going to be stronger, we're going to do better. And one day, one of them will be the president, because in America, there will be no ceilings on achievement, glass or otherwise. And if I can help point the way...
(APPLAUSE)
If I can help point the way for these young women or inspire them to tap into their own gifts and talents and strengths, to find their own opportunities, well, it is a privilege.
And I'm going to remember all the people along the way who said that they were praying for us. They were such a strength and a shield, those prayer warriors, and...
(APPLAUSE)
I'm going to remember the Blue Star moms and the special bond that we share, with our loved ones away at war.
I'm going to remember all the veterans of war and the POWs, the former POWs that I had such an honor meeting and hearing their stories -- and oh, my goodness, America cannot forget. And we must honor and respect these men who have sacrificed so greatly for us and have such a love of country and need to be heard today.
I'll remember the working people of this country who put their faith in us, the folks who run our factories and grow our food and teach our children and serve us in uniform, those who came out on the campaign trail also to say, you know, they've got a lot of hope for -- for the ideals that we were representing in our ticket.
And I remember folks like Joe the plumber, who -- yes, who spoke for so many when Joe the plumber, remember, he suggested that taking more of our families' and our small businesses' hard-earned money, what that does is stifle the entrepreneurial spirit that grew this country into the greatest country on Earth.
And thanks to Joe the plumber, people whom he was speaking for felt kind of comforted, like see, I'm not the only one who sees that, in this suggested policy that was proposed, that Joe the plumber kind of got out of Barack Obama that day. That was valuable.
I'll not forget guys like Tito the builder. He recently became a U.S. citizen, running his own construction company now. And he on the trail, he was telling us so proudly, he says, "Yes, I was born in Colombia, but I was made in the USA. This is a land of opportunity."
And man, just these everyday hard-working Americans whom we would meet. And again, such a comfort that we had knowing that we aren't the only ones believing in America being the land of possibilities and opportunity, but the federal government, man, it's got to play its appropriate role -- not get in the way of the progress of our families and our businesses -- and for their example and their love, too.
I will remember with gratitude all the families with special needs children who were the stars of the show in our rallies: kids with autism and some in their wheelchairs and these beautiful kids who maybe before were made to feel like there wasn't a place for them in the life of our country.
How could I ever forget the banners held up high that would say "We're here for Trig," "Trig in the White House," and these beautiful children and their families?
(APPLAUSE)
You know, and always being warned you can't cry on the campaign trail or you can't show that -- well, my goodness, speaking to some of these families and the challenges that they have -- and they who aren't asking anything from government or from anybody else -- perhaps a hand up, but not a handout, these families.
I would see them in the audience, and they would hold up their banners. And I'll tell you, I came close to crying few times, because they just touched my heart.
And it's time that America shows them our good collective heart. Governor Crist, one of my favorite persons whom I met along the trail was one of your constituents at a rally right here in Florida. And his name is Charlie. He's a fine young man with Down syndrome. And he's just so proud and strong and tough.
And Charlie and I exchanged e-mail addresses. The last time he replied, he said, "By the way, please quit calling me darling." I was talking about him on the trail once in a while, referring -- and he says, "It's not tough enough."
(LAUGHTER)
So today in your home state a special shoutout to Charlie, to tough Chuck -- Darling Charlie.
(APPLAUSE)
And I'll repeat what I told him, because it applies to all children and adults who are so unique: that he is beautiful. And I am so glad that my boy Trig is going to grow up just like him. And every innocent life being so precious and worthy, and truly we must show them the good heart of America.
Another funny thing, too, on the trail, we had a beautiful group of young Down syndrome young adults and children, and they're holding up their signs. And Down syndrome, of course you're born with an extra chromosome. So their slides were all clever about "We're extra special. We've got this chromosome."
And it reminded me of a bumper sticker that was sent to me from a Down syndrome group in Arizona. You know how we have bumper stickers on our minivans saying, you know, "My kid's on the honor roll and yours isn't," and "My kid's a better soccer player than your kid."
Well, this bumper sticker -- or whatever they say. But the bumper sticker that was sent to me was, "My kid's got more chromosomes than your kid." Like, all right! We won! We won!
(APPLAUSE)
But so thankful that the thing is that they were welcome, and that that, too, is what we represented as Republicans is that good heart of America, that equal opportunity for all and defense of those who maybe are vulnerable and weak.
PALIN: Heaven help us if -- if we ever stray from that principle, from that value in our party. And it was -- it was wonderful and I was honored to get to represent that value.
Above all, too, I am grateful to the man who took a chance on a Republican governor, representing you, representing all of you, and what we believe in, and with sound executive experience, and on the front lines every day. That is who you are, that is who we are, making tough decisions to best serve the people who hire us.
And we are held accountable every day. The buck stops on our desk. We're not just one of many voting "yea" or "nay" or "present."
(LAUGHTER)
No, there is no "present" button in our office, is there? We have to make the tough decisions.
John McCain knew what it is that we represent, what I represented, and all of you. From the moment he named me on Election Day (sic), I had the rare enough privilege in politics of praising a candidate whose story and character and personal heroism required no embellishment. I said things about him, about how valiantly he has served and what he has overcome, things he could not say about himself because that's just the kind of man that he is: so humble.
And elections, granted, they're not a test of valor and merit alone, of course, and the judgment of the majority is not for us to question now. Enough to say that for me, it was the honor of a lifetime to fight for what we believe in at the side of John S. McCain.
(APPLAUSE)
So now, with recent elections wrapped up, yes, on the federal level, we are now the minority party, but let us not resolve to become the negative party, too eager to find fault or unwilling to help in this time of crisis and war.
Losing an election does not have to mean losing our way. And for governors the way forward leads through our own state capitals in reforms that we will carry on or begin anew.
And I promise you Americans will be looking to their governors for reaction, for stepped-up leadership, and for our abilities to unite and to progress. Let the pundits go on with their idle talk about the next election, what happens in 2012. Our concern should be about our state's next great reform, our next budget, our next opportunity to progress in the states that we serve.
PALIN: And on the issues like taxes and energy and health care, immigration, education, we will not lack for opportunities to serve and to lead and to show the way.
If the new Congress and president err on the side, for instance, of excess taxes, then it will be falling on us to show them a better way.
In our federalist system, we governors have one of the greatest powers there is in an democracy, and that is the power of example. And we in the RGA must use that power to create the growth and the opportunities and the jobs that come from lower taxes and more efficient bureaucracy for everyone.
Now, some things that we need to keep our eye on. If I remember correctly from the campaign, the new president and the congressional majority, they have their own ideas about energy policy. I didn't hear a lot from them about actual production of U.S. energy supplies that we need now to protect our economy and our nation from reliance on foreign cartels and dictators, those who use energy as a weapon.
Maybe, though, the fact of having final responsibility for energy policy will change their outlook. But if not, then, again, it will be left for the states, for us to point the way.
And from the North Slope oil fields of Alaska to the outer continental shelf of Florida, we will press on with the great work of achieving energy security, and we can do this, we have to do this. We have the American energy sources, conventional and alternative. And we can bring it about by American ingenuity and we're going to produce it by American workers, and we can do this.
(APPLAUSE)
Other issues that we work on every day in our jobs in public service -- when it comes to, for instance, health care, the goal of affordable, accessible care is a goal that we all share. But there still are serious differences about how we reach this.
While Congress, led by Pelosi and Reid and some of the other Democrat leaders -- Barney Frank, et cetera -- and the new president -- while they all debate it, we in the states can still advance our reforms to expand choices and increase competition.
And I'm not going to assume that the answer if for the federal government to just take it over and try to run America's health care system -- Heaven forbid.
Governors, let's lead on this reform front too, with medical savings accounts -- those ideas -- and transparency and medical record keeping and elimination of CONs (ph) and barriers to more choices. Let's just get it done, and, again, show the federal government the way.
And, now, finally in every great reform effort there is an element of self-reform. And Republicans cannot shy away from that challenge either. We must see reform within.
The costs of war and security alone -- that cannot explain a federal debt that's grown to more than $10 trillion. Washington, D.C., leaders spent public money in disregard of the public interest, just like the opponents that they used to criticize.
PALIN: They got too comfortable in power. Maybe they forgot why they were sent to Washington and who they were sent to serve.
We're looking now at an American people having to work for their government instead of our government working for the people. And enough -- enough of that.
All of this must change if we are to lead again in Washington, in changing Washington for the better. So in the months ahead, let us build our case with actions and not just words. Let us reclaim our good name as the party of spending restraint and limited government and economic opportunity and personal freedom and responsibility and American tradition. Let us be true to our beliefs, strong in the defense of the weak, unafraid to speak for American ideals, and firm in our support for the men and women who defend those ideals in a dangerous world. And in all that we do, let us carry ourselves with good will and confidence and with a servant's heart. Let's lead by example.
A week ago, America did make her choice. And as for us, with a strong group of leaders here, our convictions, our loyalties, our hopes for this country remain the same, I am sure.
In respect to our presidential campaign, now it is time for us to go our own way and leaving neither bitter nor vanquished, but instead confident in the knowledge that there will be another day, and we will gather once more with new strength. We'll rise to fight again.
In the meantime, governors, I know -- RGA -- we're going to be walking the walk of true reform within our states. We will lead by example. The nation needs us.
And, I say, God bless you, in your states, and thank you for all you are doing for this great country. And we're going to step it up even more.
So, RGA, thank you guys. God bless you.
Thank you.
(APPLAUSE)
Friday, November 14, 2008
President Bush Discusses Financial Markets and World Economy
Source: http://www.whitehouse.gov/news/releases/2008/11/20081113-4.html
Federal Hall National Memorial
New York, New York
1:58 P.M. EST
THE PRESIDENT: Thank you very much. Please be seated. Thank you. Larry, thank you for the introduction. Thank you for giving Laura and me a chance to come to this historic hall to talk about a big issue facing the world. And today I appreciate you giving me a chance to come and for me to outline the steps that America and our partners are taking and are going to take to overcome this financial crisis.
And I thank the Manhattan Institute for all you have done. I appreciate the fact that I am here in a fabulous city to give this speech. (Applause.) People say, are you confident about our future? And the answer is, absolutely. And it's easy to be confident when you're a city like New York City. After all, there's an unbelievable spirit in this city. This is a city whose skyline has offered immigrants their first glimpse of freedom. This is a city where people rallied when that freedom came under attack. This is a city whose capital markets have attracted investments from around the world and financed the dreams of entrepreneurs all across America. This is a city that has been and will always be the financial capital of the world. (Applause.)
And I am grateful to be in the presence of two men who serve ably and nobly New York City -- Mayor Koch and Mayor Giuliani. Thank you all for coming. Glad you're here. (Applause.) I thank the Manhattan Institute Board of Trustees and its Chairman Paul Singer for doing good work, being a good policy center. (Applause.) And before I begin, I must say, I would hope that Ray Kelly would tell New York's finest how much I appreciate the incredible hospitality that we are always shown here in New York City. You're the head of a fabulous police force, and we thank you very much, sir. (Applause.)
We live in a world in which our economies are interconnected. Prosperity and progress have reached farther than any time in our history. Unfortunately, as we have seen in recent months, financial turmoil anywhere in the world affects economies everywhere in the world. And so this weekend I'm going to host a Summit on Financial Markets and the World Economy with leaders from developed and developing nations that account for nearly 90 percent of the world economy. Leaders of the World Bank, the International Monetary Fund, the United Nations, and the Financial Stability Forum are going to be there, as well. We'll have dinner at the White House tomorrow night, and we'll meet most of the day on Saturday.
The leaders attending this weekend's meeting agree on a clear purpose -- to address the current crisis, and to lay the foundation for reforms that will help prevent a similar crisis in the future. We also agree that this undertaking is too large to be accomplished in a single session. The issues are too complex, the problem is too significant to try to solve, or to come up with reasonable recommendations in just one meeting. So this summit will be the first of a series of meetings.
It will focus on five key objectives: understanding the causes of the global crisis, reviewing the effectiveness of our responses thus far, developing principles for reforming our financial and regulatory systems, launching a specific action plan to implement those principles, and reaffirming our conviction that free market principles offer the surest path to lasting prosperity. (Applause.)
First, we're working toward a common understanding of the causes behind the global crisis. Different countries will naturally bring different perspectives, but there are some points on which we can all agree:
Over the past decade, the world experienced a period of strong economic growth. Nations accumulated huge amounts of savings, and looked for safe places to invest them. Because of our attractive political, legal, and entrepreneurial climates, the United States and other developed nations received a large share of that money.
The massive inflow of foreign capital, combined with low interest rates, produced a period of easy credit. And that easy credit especially affected the housing market. Flush with cash, many lenders issued mortgages and many borrowers could not afford them. Financial institutions then purchased these loans, packaged them together, and converted them into complex securities designed to yield large returns. These securities were then purchased by investors and financial institutions in the United States and Europe and elsewhere -- often with little analysis of their true underlying value.
The financial crisis was ignited when booming housing markets began to decline. As home values dropped, many borrowers defaulted on their mortgages, and institutions holding securities backed by those mortgages suffered serious losses. Because of outdated regulatory structures and poor risk management practices, many financial institutions in America and Europe were too highly leveraged. When capital ran short, many faced severe financial jeopardy. This led to high-profile failures of financial institutions in America and Europe, led to contractions and widespread anxiety -- all of which contributed to sharp declines in the equity markets.
These developments have placed a heavy burden on hardworking people around the world. Stock market drops have eroded the value of retirement accounts and pension funds. The tightening of credit has made it harder for families to borrow money for cars or home improvements or education of the children. Businesses have found it harder to get loans to expand their operations and create jobs. Many nations have suffered job losses, and have serious concerns about the worsening economy. Developing nations have been hit hard as nervous investors have withdrawn their capital.
We are faced with the prospect of a global meltdown. And so we've responded with bold measures. I'm a market-oriented guy, but not when I'm faced with the prospect of a global meltdown. At Saturday's summit, we're going to review the effectiveness of our actions.
Here in the United States, we have taken unprecedented steps to boost liquidity, recapitalize financial institutions, guarantee most new debt issued by insured banks, and prevent the disorderly collapse of large, interconnected enterprises. These were historic actions taken necessary to make -- necessary so that the economy would not melt down and affect millions of our fellow citizens.
In Europe, governments are also purchasing equity in banks and providing government guarantees for loans. In Asia, nations like China and Japan and South Korea have lowered interest rates and have launched significant economic stimulus plans. In the Middle East, nations like Kuwait and the UAE have guaranteed deposits and opened up new government lending to banks.
In addition, nations around the world have taken unprecedented joint measures. Last month, a number of central banks carried out a coordinated interest rate cut. The Federal Reserve is extending needed liquidity to central banks around the world. The IMF and World Bank are working to ensure that developing nations can weather this crisis.
This crisis did not develop overnight, and it's not going to be solved overnight. But our actions are having an impact. Credit markets are beginning to thaw. Businesses are gaining access to essential short-term financing. A measure of stability is returning to financial systems here at home and around the world. It's going to require more time for these improvements to fully take hold, and there's going to be difficult days ahead. But the United States and our partner are taking the right steps to get through this crisis.
In addition to addressing the current crisis, we will also need to make broader reforms to strengthen the global economy over the long term. This weekend, leaders will establish principles for adapting our financial systems to the realities of the 21st century marketplace. We will discuss specific actions we can take to implement these principles. We will direct our finance ministers to work with other experts and report back to us with detailed recommendations on further reasonable actions.
One vital principle of reform is that our nations must make our financial markets more transparent. For example, we should consider improving accounting rules for securities, so that investors around the world can understand the true value of the assets they purchase.
Secondly, we must ensure that markets, firms, and financial products are properly regulated. For example, credit default swaps -- financial products that insure against potential losses -- should be processed through centralized clearinghouses instead of through unregulated, "over the counter" markets. By bringing greater stability to this large and important financial sector, we reduce the risk to our overall financial systems.
Third, we must enhance the integrity of our financial markets. For example, authorities in every nation should take a fresh look at the rules governing market manipulation and fraud -- and ensure that investors are properly protected.
Fourth, we must strengthen cooperation among the world's financial authorities. For example, leading nations should better coordinate national laws and regulations. We should also reform international financial institutions such as the IMF and the World Bank, which are based largely on the economic order of 1944. To better reflect the realities of today's global economy, both the IMF and World Bank should modernize their governance structures. They should consider extending greater voter -- voting power to dynamic developing nations, especially as they increase their contributions to these institutions. They should consider ways to streamline their executive boards, and make them more representative.
In addition to these important -- to these management changes, we should move forward with other reforms to make the IMF and World Bank more transparent, accountable, and effective. For example, the IMF should agree to work more closely with member countries to ensure that their exchange rate policies are market-oriented and fair. And the World Bank should ensure its development programs reflect the priorities of the people they are designed to serve -- and focus on measurable results.
All these steps require decisive actions from governments around the world. At the same time, we must recognize that government intervention is not a cure-all. For example, some blame the crisis on insufficient regulation of the American mortgage market. But many European countries had much more extensive regulations, and still experienced problems almost identical to our own.
History has shown that the greater threat to economic prosperity is not too little government involvement in the market, it is too much government involvement in the market. (Applause.) We saw this in the case of Fannie Mae and Freddie Mac. Because these firms were chartered by the United States Congress, many believed they were backed by the full faith and credit of the United States government. Investors put huge amounts of money into Fannie and Freddie, which they used to build up irresponsibly large portfolios of mortgage-backed securities. And when the housing market declined, these securities, of course, plummeted in value. It took a taxpayer-funded rescue to keep Fannie and Freddie from collapsing in a way that would have devastated the global financial system. And there is a clear lesson: Our aim should not be more government -- it should be smarter government.
All this leads to the most important principle that should guide our work: While reforms in the financial sector are essential, the long-term solution to today's problems is sustained economic growth. And the surest path to that growth is free markets and free people. (Applause.)
This is a decisive moment for the global economy. In the wake of the financial crisis, voices from the left and right are equating the free enterprise system with greed and exploitation and failure. It's true this crisis included failures -- by lenders and borrowers and by financial firms and by governments and independent regulators. But the crisis was not a failure of the free market system. And the answer is not to try to reinvent that system. It is to fix the problems we face, make the reforms we need, and move forward with the free market principles that have
delivered prosperity and hope to people all across the globe.
Like any other system designed by man, capitalism is not perfect. It can be subject to excesses and abuse. But it is by far the most efficient and just way of structuring an economy. At its most basic level, capitalism offers people the freedom to choose where they work and what they do, the opportunity to buy or sell products they want, and the dignity that comes with profiting from their talent and hard work. The free market system provides the incentives that lead to prosperity -- the incentive to work, to innovate, to save, to invest wisely, and to create jobs for others. And as millions of people pursue these incentives together, whole societies benefit.
Free market capitalism is far more than economic theory. It is the engine of social mobility -- the highway to the American Dream. It's what makes it possible for a husband and wife to start their own business, or a new immigrant to open a restaurant, or a single mom to go back to college and to build a better career. It is what allowed entrepreneurs in Silicon Valley to change the way the world sells products and searches for information. It's what transformed America from a rugged frontier to the greatest economic power in history -- a nation that gave the world the steamboat and the airplane, the computer and the CAT scan, the Internet and
the iPod.
Ultimately, the best evidence for free market capitalism is its performance compared to other economic systems. Free markets allowed Japan, an island with few natural resources, to recover from war and grow into the world's second-largest economy. Free markets allowed South Korea to make itself into one of the most technologically advanced societies in the world. Free markets turned small areas like Singapore and Hong Kong and Taiwan into global economic players. Today, the success of the world's largest economies comes from their embrace of free markets.
Meanwhile, nations that have pursued other models have experienced devastating results. Soviet communism starved millions, bankrupted an empire, and collapsed as decisively as the Berlin Wall. Cuba, once known for its vast fields of cane, is now forced to ration sugar. And while Iran sits atop giant oil reserves, its people cannot put enough gasoline in its -- in their cars.
The record is unmistakable: If you seek economic growth, if you seek opportunity, if you seek social justice and human dignity, the free market system is the way to go. (Applause.) And it would be a terrible mistake to allow a few months of crisis to undermine 60 years of success.
Just as important as maintaining free markets within countries is maintaining the free movement of goods and services between countries. When nations open their markets to trade and investment, their businesses and farmers and workers find new buyers for their products. Consumers benefit from more choices and better prices. Entrepreneurs can get their ideas off the ground with funding from anywhere in the world. Thanks in large part to open markets, the volume of global trade today is nearly 30 times greater than it was six decades ago -- and some of the most dramatic gains have come in the developing world.
As President, I have seen the transformative power of trade up close. I've been to a Caterpillar factory in East Peoria, Illinois, where thousands of good-paying American jobs are supported by exports. I've walked the grounds of a trade fair in Ghana, where I met women who support their families by exporting handmade dresses and jewelry. I've spoken with a farmer in Guatemala who decided to grow high-value crops he could sell overseas -- and helped create more than 1,000 jobs.
Stories like these show why it is so important to keep markets open to trade and investment. This openness is especially urgent during times of economic strain. Shortly after the stock market crash in 1929, Congress passed the Smoot-Hawley tariff -- a protectionist measure designed to wall off America's economy from global competition. The result was not economic security. It was economic ruin. And leaders around the world must keep this example in mind, and reject the temptation of protectionism. (Applause.)
There are clear-cut ways for nations to demonstrate the commitment to open markets. The United States Congress has an immediate opportunity by approving free trade agreements with Colombia, Peru*, and South Korea. America and other wealthy nations must also ensure this crisis does not become an excuse to reverse our engagement with the developing world. And developing nations should continue policies that foster enterprise and investment. As well, all nations should pledge to conclude a framework this year that leads to a successful Doha agreement.
We're facing this challenge together and we're going to get through it together. The United States is determined to show the way back to economic growth and prosperity. I know some may question whether America's leadership in the global economy will continue. The world can be confident that it will, because our markets are flexible and we can rebound from setbacks. We saw that resilience in the 1940s, when America pulled itself out of Depression, marshaled a powerful army, and helped save the world from tyranny. We saw that resilience in the 1980s, when Americans overcame gas lines, turned stagflation into strong economic growth, and won the Cold War. We saw that resilience after September the 11th, 2001, when our nation recovered from a brutal attack, revitalized our shaken economy, and rallied the forces of freedom in the great ideological struggle of the 21st century.
The world will see the resilience of America once again. We will work with our partners to correct the problems in the global financial system. We will rebuild our economic strength. And we will continue to lead the world toward prosperity and peace.
Thanks for coming and God bless. (Applause.)
END 2:22 P.M. EST
The Increase in Minimum Wage has adversely effected the Economy and Hurt the Poor By Mulderator
Mythology of the Minimum Wage
Source: http://www.mises.org/story/2130
by D.W. MacKenzie | Posted on 5/3/2006
Once again politicians and pundits are calling for increases in the legal minimum wage. Their reasons are familiar. Market wages are supposedly immoral. People need to earn a "living wage." If the minimum wage went up at least to $7, or better still to near $10 an hour, millions would be lifted out of poverty.[1]
The economic case against minimum wage laws is simple. Employers pay a wage no higher than the value of an additional hour's work. Raising minimum wages forces employers to dismiss low productivity workers. This policy has the largest affect on those with the least education, job experience, and maturity. Consequently, we should expect minimum wage laws to affect teenagers and those with less education. Eliminating minimum wage laws would reduce unemployment and improve the efficiency of markets for low productivity labor.
There are a few economists who have been leading the charge for higher minimum wages. Some of these economists have obvious ideological leanings. Economists connected with the Left -orientated Economic Policy Institute and the Clinton Administration have concocted a rational for minimum wage increases. According to these economists higher wages make employees more content with their jobs, and this leads to higher worker productivity. Thus workers will be worth paying a minimum wage once their employers are forced to pay these wages. Of course, if this were true — if employers could get higher productivity out of less educated and experienced workers by paying higher wages — they would be willing to do this without minimum wage legislation. But the economists who make this case claim to have empirical evidence that proves them right. Economists David Card and Alan Krueger have published studies of the fast food industry indicated that small increases in the minimum wage would cause only minor job losses, and might even increase employment slightly in some instances. These studies by Card and Krueger show only that a small increase in minimum wage rates might not cause much of an increase in unemployment. Such studies ignore the fact that the current level of minimum wages are already causing significant unemployment for some workers.
The economic case for minimum wage increases has gained some ground with public and even professional opinion. Even some free market leaning economists, like Steven Landsburg, have conceded that minimum wages increases do not affect employment significantly.[2] Landsburg notes that critics of minimum wage laws emphasize that they have a disproportionate effect on teens and blacks. But he dismisses these critics because "minimum wages have at most a tiny impact on employment … The minimum wage kills very few jobs, and the jobs it kills were lousy jobs anyway. It is almost impossible to maintain the old argument that minimum wages are bad for minimum-wage workers."
Real statistics indicate that the critics of minimum wage laws were right all along. While it is true that minimum wages do not drive the national unemployment rate up to astronomical levels, it does adversely affect teenagers and ethnic minorities. According to the Bureau of Labor Statistics the unemployment rate for everyone over the age of 16 was 5.6% in 2005. Yet unemployment was 17.3% for those aged 16-19 years. For those aged 16-17 unemployment was 19.7%. In the 18-19 age group unemployment was 15.8%. Minimum wage laws do affect ethnic minorities more so than others.[3] The unemployment rate for white teens in the 16-17 age group was 17.3% in 2005. The same figures for Hispanic and black teens were 25% and 40.9% respectively. Of course, these figures decrease for older minorities. Blacks aged 18-19 and 20-24 had 25.7% and 19.9% unemployment in 2005. For Hispanics unemployment was slightly lower — 17.8% at age 18-19 and 9.6% at age 20-24.
Landsburg might maintain that most of these lost jobs are lousy jobs that teens will not miss. DeLong thinks that minimum wage laws can help to avert poverty — workers who keep their jobs at the minimum wage gain much, while unemployed workers lose little. Part of the problem with this argument is that it involves arbitrary value judgments. According to mainstream economic theory, we achieve economic efficiency when markets clear because this is how we realize all gains from trade. With teen unemployment in double digits — running as high as 40.9% — it is obvious that some labor markets are not clearing. If labor market imperfections led to such levels of unemployment, economists like DeLong, Card, and Krueger would call for government intervention to correct these "market failures." Yet they find double digit teen unemployment acceptable when it derives from government intervention. Why? Because they want to use such policies to redistribute income.[4]
Mainstream economic theory lacks any basis for judging the effects of income redistribution. According to textbook economics we attain the highest level of economic efficiency when markets clear, when we realize the maximum gains from mutually advantageous trade. Income transfers benefit some at the expense of others. Economists have no scientific methods for comparing gains and losses through income transfers.[5] Once economists depart from discussing efficiency conditions and begin to speak about income redistribution, they become advocates of a political agenda, rather than objective scientists. The jobs lost to minimum wage laws might not seem worthwhile to DeLong or Landsburg, but they obviously are worthwhile to the workers and employers whom these laws affect. Why should the value judgments of a few armchair economists matter more than the interests of would be employees and employers? These jobs may be "lousy jobs," but one could also argue that these jobs are quite important because they are a first step in gaining job experience and learning adult responsibility.
A second problem with the case against minimum wages is that they affect older workers too. As already noted, workers in the 20-24 age group appear to be affected by minimum wage laws. Unemployment rates in the 25-34 age group are higher than for the 35-44 age group. The unemployment rate for blacks and Hispanics aged 25-34 were 11.1% and 5.8% in 2005. Unemployment for whites and Asians in this age group were 4.4% and 3.5%. In the 35-44 age group the unemployment rates for these four ethnicities were 7.2%., 5.1%, 4.4%, and 2.7%. A comparison of black to Asian unemployment is revealing. In the United States, Asians tend to attain higher levels of education than blacks. Thus minimum wage laws are relatively unimportant to Asian Americans. Consequently, Asians are able to attain unemployment as low as the 2-3% range. For Asians aged 16+ the unemployment rate was only 3.3% in 2005. For Asians in the 20-24 age group unemployment was 5.1%. These figures are only a fraction of the unemployment rates experienced by blacks in 2005. There is no reason why white, Hispanic, and black Americans cannot also reach the 2-3% range of unemployment.
Supporters of minimum wage laws do not realize that prior to minimum wage laws the national unemployment rate did fall well below 5%. According to the US Census, national unemployment rates were 3.3% in 1927, 1.8% in 1926, 3.2% in 1925, 2.4% in 1923, 1.4% in 1919 and 1918, 2.8% in 1907, 1.7% in 1906, and 3.7% in 1902.[6]
Even today, some states have unemployment rates as low as 3%. Virginia now has an unemployment rate of 3.1%. Wyoming has an unemployment rate of 2.9%. Hawaii has an unemployment rate of 2.6%. National unemployment rates seldom drop below 5% because some categories of workers are stuck with double digit unemployment. Given these figures, it is quite arguable that minimum wage laws keep the national unemployment rate 3 percentage points higher than would otherwise be the case.
 | It's all about control: $22 |
Economist Arthur Okun estimated that for every 1% increase in unemployment GDP falls by 2.5-3%. If minimum wage laws are responsible for keeping the national unemployment rate 3 percentage points above where it would otherwise be, then the losses to minimum wage unemployment are substantial. Since Okun's law is an empirical proposition it is certainly not constant. Eliminating minimum wages might not increase GDP as much as this "law" indicates. However, the elimination of minimum wage laws would surely have a positive effect on GDP. In any case, economic theory and available data indicate that minimum wage laws do result in economic inefficiency. The implementation of a "living wage" would only increase these losses. Do proponents of living wages really want to see unemployment rates among ethnic minorities and teens climb even higher?
The economic case for a living wage is unfounded. Current minimum wage rates do create high levels of unemployment among low productivity workers. Higher "living wages" would only make these problems worse. The alleged moral case for a living wage ignores the fact that minimum wage increases adversely affect the very people whom advocates of living wages intend to help. If politicians wish to pursue sound policies, they should consider repealing minimum wage laws, especially where teens are concerned. Unfortunately, most politicians care more about political expediencies than sound economic policy. This being the case, minimum wages will increase unless public opinion changes significantly.
D.W. MacKenzie teaches economics at SUNY Plattsburgh. Send him MAIL and see his Mises.org Daily Articles Archive
[1] See Dreier and Candeale A Moral Minimum Wage, April 27 2006 and Cauchon States Say 5.15 too little April 27 2006.
[2] See "The Sin of Wages" by Steven Landsburg and "The Minimum Wage and the EITC" by J. Bradford DeLong.
[3] This is likely due to the poor quality of many inner city public schools.
[4] It is worth noting that Landsburg opposes redistribution via minimum wage laws.
[5] This would require interpersonal comparisons of welfare. Robbins (1933) proved that such comparisons are unscientific.
[6] US Bureau of the Census Historical Statistics p135.
Source: http://forums.techguy.org/civilized-debate/705240-increase-minimum-wage-has-adversely.html
Translation: Unless the idiots who simplisticly believe a higher minimum wage helps the poor, the poor will continue to be the people that are being hurt by these politicaly driven, economically unsupported laws.
I did a analysis myself by comparing the state unemployment rates with the minimum wage (see below). Not surpisingly, the states with the lowest unemployment have the lowest minimum wage and visa-versa (generally speaking). There are some exceptions--for example, the southern states with high concentrations of low skilled workers will always have high unemployment rates. Hawaii will always have low unemployment rates because of its uniqueness. But the data is absolutely clear--for example, 14 of the states in the bottom 24 of the unemployment rate have the lowest minimum wage. Conversely, 17 of the states in the highest 25 in unemployment rates also in the top half of the rates of minimum wage.
Its no accident that California which is a liberal state and has the highest minimum wage laws and the most onerous employment laws always has one of the highest unemployment rates.
http://en.wikipedia.org/wiki/List_of_U.S._state_minimum_wages
http://money.cnn.com/pf/features/lists/state_unemployment/index.html
The "Wage Rank) is from lowest to highest minimum wage--obviously there area lot of ties for places since many states go by the federal minimum wage. I also replaced wages that were lower (due to exceptions to the wage rates) with the federal minimum.
Attached Thumbnails
Thursday, November 13, 2008
Kenyan Born Obama = Corrupt Africans Kofi Annan & Nelson Mandela
Kofi Annan, Mandela on Obama’s victory
Source: http://www.ghananewstoday.com/news_readmore.php?id=1562
13 November 2008
From city squares to remote villages, many citizens of the world cheered the election of Barack Obama as U.S. president.
Former U.N. Secretary-General Kofi Annan, who is from the West African nation of Ghana, said the vote was a historic event that he'd never expected in his lifetime. He said Obama's victory demonstrates "America's extraordinary capacity to renew itself and adapt to a changing world."
For Nelson Mandela, South Africa's first black president, the election of America's first black commander in chief is a symbol of hope. Mandela has sent Obama a letter of congratulations saying that Obama's win shows that anyone in the world can "dare to dream of wanting to change the world for a better place."
In France, a human rights minister hailed the occasion as "the fall of the Berlin Wall times ten." He said today "we all want to be American."
Source: AP
