Month: February 2015

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Scaturro on The Constitutional Crises

Never before have so many fundamental constitutional questions about the nature of the federal government arisen so quickly and continuously.

Frank Scaturro is a lawyer, historian, and public advocate. He is a constitutional expert who served as Counsel for the Constitution on the U.S. Senate Judiciary Committee from 2005 to 2009, and helped coordinate the nomination process to elevate John Roberts and Samuel Alito to the United States Supreme Court. Scaturro has published other books and articles about history, constitutional law, and public policy.
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We are pleased to announce he will be our guest on our Friday, February 20 broadcast.

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U.S. manufacturing hurt by political miscalculations

U.S. manufacturing is in a state of crisis, and it may be a self-imposed dilemma for America. The January 2015 report from the Federal Reserve notes that there are fewer jobs in that industry than at the start of the Obama presidency, when there was 12,561,000 manufacturing jobs in the nation.  By January of 2015, that number had been reduced to 12,330,000.

The crisis has its antecedents long before President Obama took office, during the tenure of President Clinton.

In October 0f 2000, Clinton signed legislation granting permanent normal trade relations to China. The measure had been bitterly opposed by conservatives, human rights groups, and unions. The move was consistent with his controversial policy of enhancing relations with Beijing, which included selling them  supercomputers and nuclear technology,  The moves are now seen as playing a significant role in building China’s sophisticated and aggressive military.

The change in U.S. trade policy eliminated potential tariff increases on Chinese imports. In addressing the issue, the Federal Reserve notes: “Our estimates reveal a negative and statistically significant relationship between the change in U.S. policy and subsequent growth in manufacturing…We find that U.S. imports of the goods most affected by the policy change increase substantially after 2001, and that this growth is driven by imports from China.”

Richard mcCormick, writing in the American Prospect back in 2009  noted that For American manufacturers, “the bad years didn’t begin with the banking crisis of 2008… Since 2001, the country has lost 42,400 factories, including 36 percent of factories that employ more than 1,000 workers (which declined from 1,479 to 947), and 38 percent of factories that employ between 500 and 999 employees (from 3,198 to 1,972). An additional 90,000 manufacturing companies are now at risk of going out of business. Long before the banking collapse of 2008, such important U.S. industries as machine tools, consumer electronics, auto parts, appliances, furniture, telecommunications equipment, and many others that had once dominated the global marketplace suffered their own economic collapse. Manufacturing employment dropped to 11.7 million in October 2009, a loss of 5.5 million or 32 percent of all manufacturing jobs since October 2000. The last time fewer than 12 million people worked in the manufacturing sector was in 1941. In October 2009, more people were officially unemployed (15.7 million) than were working in manufacturing.”
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Manufacturing has a singularly vital role in the U.S. economy. Senator Christopher Coons (D-Delaware)  notes that “Workers in manufacturing jobs earn 22 percent more in annual pay and benefits than the average worker in other industries, according to the National Association of Manufacturers. Every new manufacturing job we create adds another 1.6 jobs to the local service economy, and for every dollar in manufacturing sales, another $1.34 is added to the economy. Investments in manufacturing have a stronger impact than investments in any other economic sector.”

The Economic Policy Institute recently reported that “Manufacturing industries generated $2.1 trillion in GDP (12.5 percent of total U.S. gross domestic product) in 2013. But even these figures do not fully capture manufacturing’s role in the economy. Manufacturing provides a significant source of demand for goods and services in other sectors of the economy, and these sales to other industries are not captured in measures of manufacturing sector GDP but are counted in the broader measure of its gross output. U.S. manufacturing had gross output of $5.9 trillion in 2013, more than one-third (35.4 percent) of U.S. GDP in 2013. Manufacturing is by far the most important sector of the U.S. economy in terms of total output and employment. The manufacturing sector supported approximately 17.1 million indirect jobs in the United States, in addition to the 12.0 million persons directly employed in manufacturing, for a total of 29.1 million jobs directly and indirectly supported, more than one-fifth (21.3 percent) of total U.S. employment in 2013.

“The manufacturing sector is also a particularly important provider of jobs with good wages for workers without a college degree. This can be seen in the manufacturing wage premium—the dollar amount by which the average manufacturing worker wage exceeds the wage of an otherwise comparable worker outside the manufacturing sector. The average wage premium for all U.S. manufacturing workers without a college degree was $1.78 per hour (or 10.9 percent) in 2012–2013.”

The ongoing weakness in the U.S. economy and job market, combined with Beijing’s continuing and dramatic military buildup, should encourage a timely and thorough re-examination of American trade relations with that nation.

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Lessons from Washington & Lincoln

Today is called President’s Day, but it is really a commemoration of two extraordinary men who were fundamental in the formation of America.  Their sterling example should be followed by all presidents.

Washington was so popular that he could have been king instead of president. But he understood that the Revolution was about a principle, not just creating a new nationality. Becoming president was not about adding the greatest capstone to an illustrious career; it was about public service, and service not to a faction or political party but to the nation.

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In the midst of the tumultuous task of forming a new nation, President Washington did not seek to override the other two branches of government.  He adhered to the Constitution. Despite the desperation of Civil War, Lincoln respected the principles of limited government.

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The Munich Conference, again.

Leaders of European democracies meet with the head of an aggressive power in the desperate hope of avoiding conflict, and agree to an accord that violates the sovereignty of a weak democratic state. Even with that humiliating concession, no one realistically expects that aggressive power to cease its hostile acts.   

Is that opening sentence describing the meeting of England’s Chamberlain, France’s Daladier, Italy’s Mussolini and Germany’s Hitler in 1938, or the 2015 meeting of Russia’s Putin, France’s Hollande, Germany’s Merkel, and Ukraine’s Poroshenko?

The description fits both the Munich conference in 1938 that granted the Nazis dominance of central Europe, and the recent conference which forces Ukraine’s central government to surrender a great deal of authority to Moscow-backed and encouraged rebels.

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Hitler violated arms accords, as does Putin.  Both, despite a clear absence of threats, built up their armed forces to unprecedented levels despite having to drain resources from domestic needs. In both cases, “peace at any price” advocates in democracies scoff at the obvious evidence of the danger lurking ahead.

Will the world repeat the mistakes of the past?

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Public financing of campaigns will increase corruption

Repeated cases of corruption in elected officials frequently inspire calls by other elected officials and their supporters for the public funding of campaigns. But will the concept actually work?

The answer, essentially, is no. Non-establishment candidates who run for office without the assistance of party bosses have to comply with a hornet’s nest of regulations and paperwork, and not filling it out to the satisfaction of the major party bureaucrats who generally staff campaign finance offices can result in heavy-duty fines or the rejection of matching funds. The process is a gift to the professional politicians and party bosses who have the time and money to truly master this procedure, and the connections to insure they get the funds on a timely basis.

Research recently published by the State Policy Network (SPN) indicates that “legislators from both parties still agree on at least one issue:  preserving their incumbency is paramount. In their zeal to ensure re-election, lawmakers across the country are considering proposed campaign finance laws that can sweep 501(c)(3) groups into burdensome donor disclosure regimes. While new candidates and challengers campaign to win the war of ideas and the election, those in power increasingly seek to use their lawmaking powers to protect their perch by passing onerous campaign finance laws.

According to the Institute for Justice, The only statistical study to examine the effect of state public funding laws on perceptions of government found that public funding has, in some cases, a small negative effect.

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 Research perfomed by Matt Nese and published by The State Policy Network reveals “…taxpayer-funded campaigns have been willfully exploited and manipulated by candidates seeking to abuse public funds for personal gain. Contrary to the claims of advocates, CCP’s research in Arizona and Maine has shown that taxpayer-funded elections do not reduce lobbyist influence, do not produce more occupationally diverse legislatures, do not increase the percentage of women in legislatures, and do not reduce government spending. Additional research by CCP has demonstrated that taxpayer-financed campaign systems do not increase voter turnout either, contrary to proponents’ frequent claims. In addition, CCP studied the voting patterns of legislators who served in the Connecticut General Assembly in the 2007-08 and 2009-10 legislative sessions, and accepted taxpayer dollars for their re-election campaigns through the Citizens’ Election Program (CEP). Analysis of legislator voting records revealed that the CEP failed to change the frequency with which participating legislators voted in favor of the positions of organized interest groups.

A CATO study conducted in the 1990’s prophetically stated “Almost all current reform proposals, at the state and federal levels alike, would similarly aid incumbents. Resources will never by truly equal, given the many advantages inherent to incumbents. Yet limiting electoral activism by individuals and groups would make it even more difficult for challengers to beat the odds. Political careerism is already a greater danger than is influence-peddling. “Reform” would make the system more rather than less corrupt. Ultimately, the only true campaign reform is to shrink government…In the meantime, Congress and the states should deregulate elections. Allow any contribution of any amount, so long as it’s fully disclosed. Then voters, after judging candidates’ fund-raising practices as well as policy positions, could make the final decision.”

The bad idea of regulating campaigns will keep rearing its ugly head nationwide until the voters realize that it’s just another scheme by professional politicians to keep their jobs, whether they deserve to or not.

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Dueling Conferences on Terrorism

Following President Obama’s startling State of the Union comment that the “shadow of the crisis of terrorism has passed,” followed weeks later by his equally odd comments comparing medieval crusades with modern day Islamic extremism, it has become clear that there is growing concern over the Administration’s competence and vision concerning keeping the nation safe.

It is not surprising, then, that the announcement of a White House summit on countering violent extremism would be met with considerable skepticism. The Center for Security Policy (CSP) has called the planned event “…an exercise in disinformation, deflection and deceit, both about the reality of Islamic supremacism and the effectiveness of the steps the United States and its allies are taking to contend with it.”

 

On the same day that the White House will hold its session, CSP will conduct its own event  hosting “leaders and other influential figures from around the world will come together to address in a realistic way the emerging – and potentially existential – threat facing our nation and its friends overseas, and to resolve how best to counter it… Unlike the closed-door official function, however, ours will be live-streamed.”
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According to CSP, The alternative summit’s roundtable will focus on three topics:

  1. “The nature of the enemy we face – the Global Jihad Movement and its animating ideology of shariah, i.e., notsomething euphemistically and misleadingly called “violent extremism”;
  2. the actual degree to which the present policy for addressing this threat has been successful or a failure – a realistic appraisal devoid of the cheerleading, wishful thinking, misdirection and worse that colors Ms. Rice’s every utterance (predictably, to include those served up at Brookings tomorrow) and that will be the leitmotif of the CVE Summit, with its official/Muslim Brotherhood and fellow-traveling participants;
  3. An alternative approach that is fact-based, non-submissive to jihadist threats and influence operations and, ideally based on a strategy proven to be successful in countering totalitarian ideologies bent on our destruction – i.e., the Secure Freedom Strategy modeled on the one President Reagan launched 32 years ago last month that sought, and achieved, the liquidation of Soviet communism and its ‘Evil Empire.”

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IRS Scandal Contiues

The far-reaching scandal involving the use of the IRS to harass those who oppose the current White House’s policies continues. According to Americans for Tax Reform, (ATR) The IRS is failing to perform basic due diligence in its rehiring of employees who have been involved in this and other episodes of misdeeds.

Adding to the suspicion is the fact that descriptions of the specific violations committed by rehired employees have been redacted from the official report   released by the Treasury Inspector General for Tax Administration (TIGTA).

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“The IRS stated that it completely revamped its process in 2012 and appropriately considers prior conduct and performance in hiring decisions. However, we remain concerned because IRS records indicate that in 2012 and 2013 it hired individuals with prior significant IRS-substantiated conduct and performance issues.”​

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White House measures expected to hike costs, hurt U.S. trade

The US is the world’s reigning coal super-power, with more reserves than any other nation. Indeed, it has a quarter of all the coal on the planet.   Providing 40% of all American power, there is enough of the home-based commodity to last for the next 290 years. According to Americaspower.org, the coal industry has invested nearly $120 billion so far to reduce emissions by 90 percent and plans to spend an additional $27 billion between now and 2016.

So why has the Department of Energy removed funding for FutureGen 2.0,  a carbon capture and storage project? Americaspower contrasts this move with China, which is investing heavily in the technology power “and stand(s) to enjoy the estimated $1 trillion in economic benefits from CCS.”

Strangely, the announcement came just one day after President Obama requested significant funding for carbon capture and storage projects in his FY 2016 budget. Laura Sheehan, senior vice president for communications at the American Coalition for Clean Coal Electricity group noted that “The Obama Administration is engaging in misleading double-talk on clean coal technology. Although the administration leaned heavily on FutureGen technologies to justify its flawed New Source Performance Standards rule, President Obama has now cut the project off altogether…President Obama and his federal agencies are clearly opposed to advancing carbon capture and storage technology, despite repeated assurances. What makes this action even more disgraceful is then-Senator Obama’s full-throated support for FutureGen in 2006.”
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Exports of U.S. coal, which have doubled over the past decade according to the Wall Street Journal, also play a key role in managing the dismaying U.S. balance of trade.

White House actions regarding carbon emissions reduction, a key issue in the use of coal, are expected to increase the cost of coal-based electricity by 80%.

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Illegal Immigration: The Statistics

The alarming rise in illegal immigration is often a topic of discussion, but testimony before the House Judiciary Committee recently illustrated the almost total failure—or refusal—of the federal government to deal with the crisis.  As part of her statement, Jessica M. Vaughan of the Center for Immigration Studies outlined the crisis:

 “Dramatic Decline in Enforcement: Statistics published by the Department of Homeland Security (DHS) show clearly that over the last several years, even as illegal border crossings have grown and the number of overstaying visitors is large, the number of deportations has plummeted and the number of illegal aliens allowed to stay and work in the United States has increased. The drop in enforcement activity has become particularly acute since the president’s executive action went into effect in late November 2014.

“Border Crossing Attempts:Since 2011, the number of illegal crossers apprehended by the Border Patrol has increased by 43 percent, from 340,000 to 487,000. It is generally believed that border apprehensions are an indicator of the number of attempted illegal border crossings, and that approximately half of those who attempt illegal entry are successful. U.S. Customs and Border Protection (CBP) states that “The uptick is largely due to the increase in unaccompanied children and family units who turned themselves in to Border Patrol agents in South Texas this summer.” These cases totaled 137,000 in 2014 alone.

“Although the apprehension statistics are concerning enough, they do not tell the whole story. CBP has yet to disclose how all these cases were disposed of — that is, how many of those apprehended were removed or returned, and how many were released into the United States? Of those released, how many have concluded their immigration proceedings or absconded from those proceedings? For example, separate government statistics indicate that only a few hundred of the surge arrivals have been deported.

“Overstays: It is generally accepted that 40 percent of the illegally residing population is comprised of aliens who overstayed beyond the time or purpose authorized by their status. According to an unpublished report I have reviewed that was prepared by DHS based on arrival and departure records, in 2012 approximately 263,000 aliens who were admitted on B-1 or B-2 visitor visas or under the Visa Waiver Program were identified as having remained in the country beyond their authorized duration of stay.

“Overstayers are not a high priority for deportation. In 2013, only 3 percent (11,596 out of 368,485) of the aliens deported by U.S. Immigration and Customs Enforcement (ICE) were overstays.

“DHS Deportations. Total deportations by all three DHS immigration enforcement agencies (Border Patrol, ICE and CBP-OFO) have declined by 37 percent since 2009, from 978,000 to 616,000. This has occurred despite an increasing number of apprehensions and continuing overstay arrivals…

“Interior Deportations. The number of ICE deportations from the interior has dropped 58 percent since the peak in 2009, from 236,000 to 102,000 in 2014.

“Criminal Deportations. The number of criminal aliens deported from the interior has declined by 43 percent since 2012, from 153,000 to 87,000, despite increases in the number of criminal aliens encountered and screened by officers.

“In 2014, ICE deported 69,000 fewer criminals from U.S. communities than it did in 2012. This has occurred despite the fact that ICE has the ability to identify more criminal aliens than ever before, thanks to the nationwide implementation of the Secure Communities program, which links the DHS databases to the national fingerprint matching system.
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“Criminal Releases. In 2013, ICE released 36,007 convicted criminal aliens from its custody. Of these, 193 had homicide convictions, 426 had sexual assault convictions, and 303 had kidnapping convictions. As of September 2014, 5,700 of them (16 percent) had been arrested again for subsequent offenses, and 1,000 have been convicted again. ICE has taken only 1,600 back into custody.

“In 2014, ICE released another 30,000 convicted criminal aliens.

As of September, 2014, there were 166,781 convicted criminal aliens who had received final orders of removal who had not departed but were still at large in the United States after release by ICE. In addition, there were 174,283 convicted criminals with pending deportation proceedings who were at large in the United States, released by ICE.

“Moreover, many convicted criminal aliens are allowed to walk out of ICE custody without being enrolled in a program of supervision. For example, ICE officer report that fewer aliens are being enrolled in the Intensive Supervision Appearance Program (ISAP), in which criminal aliens wear an electronic monitoring bracelet and check in frequently with monitors. I am told that while once this program was used frequently for lower level offenders, now it is rarely used, in favor of allowing the criminal alien to bond out without supervision. Members of this committee may wish to ask ICE to disclose how frequently this program is being used to supervise criminal aliens after release, which type of aliens are required to participate compared with prior years, and how many of these aliens have re-offended.

“Gang Arrests. Although gang members are said to be a high priority for enforcement, in fact the number of gang member arrests by Homeland Security Investigations (HSI) agents has declined considerably. According to ICE records, the number of gang arrests declined from 5,080 arrests to 3,917 arrests from 2012 to 2013, a drop of 23 percent. The 2013 total is the lowest number of gang arrests since 2008.

“Further, ICE gang investigators have expressed concerns to me that gang members they arrest (usually after conviction on state charges) and turn over to Enforcement and Removal Operations (ERO) for detention and removal processing are sometimes de-prioritized and released — and even allowed to apply for work permits — which can unravel their prosecution and removal case, not to mention threaten public safety.

“ICE officers also report that informants who once agreed to work for ICE to help dismantle major gang conspiracies in exchange for the ability to stay here now are telling ICE that they have no incentive to do so, because they qualify for the president’s amnesty or know that they can take advantage of “prosecutorial discretion” policies. One gang investigator told me that some illegal alien gang members actually taunt ICE agents, knowing they are now virtually untouchable for deportation.

“ICE Metrics. Interior enforcement activity as measured by all of the other key metrics tracked by ICE — encounters, arrests, detainers, and charging documents issued — show declines in recent years. In 2014, deportation processing was initiated for approximately 143,000 aliens out of the 585,000 aliens encountered by ICE agents. Tens of thousands of those let go had been labeled a criminal threat.

“The Non-Departed. The number of aliens who have received a final order of removal, but who are still in the United States, has risen to nearly 900,000 as of September 2014. This number has grown by 40,000 in just two years. Part of the reason is that, even with the administration’s mass dismissals of “non-priority” cases in lieu of immigration hearings, many of the aliens whose case are completed and who are ordered removed simply do not comply if they are not detained. They were never a priority for enforcement under this administration, but now the president’s recent executive action specifically nullified all removal orders and enforcement actions involving “non-criminals” taken before January 1, 2014.”

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Lt. Col. Dennis Haney (USAF, Ret.) Outlines Benghazi Scandal

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