Author: Frank V. Vernuccio, Jr.

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House Armed Services Committee begins hearings on Russian aggression

Tensions continue to mount as Russia expands its influence in Ukraine and engages in nuclear-capable bomber flights close to the airspace of NATO members in Europe and North America.

NATO’s Deputy Secretary General, Alexander Vershbow maintains that “Russia’s aggression against Ukraine is not an isolated incident, but a game-changer in European security. It reflects an evolving pattern of behavior that has been emerging for several years, despite our efforts to reach out to Russia and build a cooperative European security system with Russia.”

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In a preliminary statement, the chairman addressed the nature of the threats: “First is the naked aggression of conquest. We have seen this in Europe many times in the past.  History has taught us that aggression, unchallenged in its early days, leads to greater costs and greater misery when it finally must be confronted. “Second is the undermining of the rules-based international system that has existed since the end of World War II.  I am among those who are convinced that President Putin is working to undermine the current international structure, in order to replace it with one more to his liking.  And he has some unsavory allies in that effort.
The third challenge is the tactics that are being used by Russia in Ukraine.  We’ve heard a lot about “little green men,” but the various efforts Russia is using to undermine the Ukrainian security forces –as well as to pull a facade over its own involvement– presents challenges to NATO and the United States.  We do not deal with naked lies, subversion, and other forms of subterfuge very well.”

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Transportation Funding: A Wrong Turn?

Under President Obama’s proposed 2016 budget, The Department of Transportation would receive a significant level of funding.

While there is general agreement that the nation’s transportation infrastructure needs substantial investment, significant questions have been raised both about the manner in which the Administration’s plans would be funded, and about the competence to effectively and efficiently address the problem.

Over 6 years, the proposed funding would provide :

  •  $317 billion to invest in the highway system: The proposal will increase the amount of highway funds by an average of nearly 29 percent above FY 2015 enacted levels, emphasizing policies and reforms that prioritize investments for repairs and improvements to road safety and transit services, with particular attention to investments in rural and tribal areas.
  • Nearly $115 billion to invest in transit systems and expand transportation options: The proposal increases average transit spending by nearly 76 percent above FY 2015 enacted levels, which will enable the expansion of new projects that improve connectivity, such as light rail, street cars, and bus rapid transit, in suburbs, fast-growing cities, small towns, and rural communities, while still maintaining existing transit systems.
  • Predictable funding for rail investments: $28.6 billion over 6 years would be provided to fund the development of high performance rail and other passenger rail programs as part of an integrated national transportation strategy.

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To pay for these programs, the White House has called for over $2 trillion in tax increases, including hikes to the personal income tax, death tax, capital gains and business tax rates (the U.S. already has the highest corporate tax level of any major nation, resulting in more jobs moving overseas) and sales taxes.

A CATO analysis of the transportation budget criticized the use of corporate taxes to pay for the plan, the emphasis on federal rather than state funding, the centralization of rail policy, and the generally increased role for Washington as opposed to more efficient state and local governments.

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Medicaid patients encounter difficulties getting appointments

Disturbing information continues to build concerning the growing difficulty of individuals covered under the affordable care act as well as those under Medicaid in finding physicians who will treat them.

According to Healthline News, “many of the newly insured will have trouble finding a doctor. Those who do may have difficulty getting quick appointments. Many have gained or will gain coverage under the expansion of Medicaid. …A big problem, even for those who do live in Medicaid expansion states, is that there are not enough primary care physicians to treat people on the government insurance plan. This was a problem even before the expansion.” Healthline News reports that those not able to obtain primary care frequently end up in emergency rooms.

Part of the reason is that, this year, primary care doctors are receiving lesser reimbursement.

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To address the problem, which can greatly increase costs to states and local governments, which in many cases are responsible for the emergency room expenses incurred at public hospitals, “Fifteen states indicated that they will continue the primary care fee increase in 2015, at least in part” according to a Kaiser Family Foundation study.

Adding to the difficulties faced by Obamacare enrollees, a CNN Money study  finds that “Deductibles, co-payments, and drug payments are higher under the average Obamacare silver-level plans — the most popular — than employer policies.”

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Time for a candid look at the climate change theory

The time has come for a candid re-examination of an almost sacrosanct article of faith: the acceptance of significant global climate change resulting from human causes.

Originally, advocates of the theory suggested that the planet was cooling.  That concept didn’t work out, and the same advocates proposed that the population, particularly in industrialized nations, was causing global warming.  That, too, hasn’t withstood the rigors of scientific analysis, particularly since the alleged warming trend appears to have halted for decades, if indeed it ever existed, and so the rather nebulous concept of “climate change” was proposed, and is now widely taught in schools, accepted by most of the media, and used as a factor in fostering large-scale government intervention in the private sector.

A number of explicit facts have challenged the notion that manmade activities are having a significant impact on the Earth’s temperature, starting with the fact that the Earth has continuously experienced climate change, even before humans made their relatively recent appearance.

The data employed to foster the manmade change theory has been shown to be seriously flawed. When “change” advocates generally cite records only a few hundred years old, they ignore extremely relevant information. From the 10th to the 14th centuries, the planet’s temperature was warmer  than that of our time. This period was followed by an era now known as “the Little Ice Age.”  Changes continued, not tied to human activity, and continue still.
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As climate change advocates pursued significant alterations in the U.S. economy, some scientists began to notice an interesting phenomenon. The planet Mars appears to be experiencing climate changes similar to Earth. Clearly, human activity could not be a factor there.

As serious as the ignored data has been the intentional falsifying of key science studies. The most well-known case, popularly known as “Climategate,” came to the public’s attention when leaked emails from the University of East Anglia revealed that results of studies were tailored to ignore actual results in favor of propping up the beliefs of global warming theory advocates. It has now been revealed that the U.S. National Oceanographic and Atmospheric Administration and NASA have fabricated computer modeling of the atmosphere, perhaps in response to political pressure, also to better serve the wishes of climate change advocates.

The Earth’s environment does require attention, and actual harmful activities should be addressed. But the use of ignored facts and falsified data to support incorrect theories can only cause harm. The cynical employment of counterfeit science to pursue political ends is unacceptable.

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Moscow’s military buildup is offensive, not defensive

The most worrisome aspect of Moscow’s intense military buildup is the offensive nature of the weapons and tactics emphasized. The advanced nuclear weapons technology upgrades, including both strategic and tactical weapons being implemented are complemented by advanced conventional weaponry additions.

2014 marked the first time that Russia attained strategic nuclear superiority over the U.S., as well as a ten to one lead in tactical atomic weapons.

As reported by the pro-Moscow news source Sputnik International,  the Sevmash shipyard is constructing four next-generation nuclear submarines, the first time in history this many have been constructed at once. The question, of course, is why the economically challenged Putin regime is concentrating so much of its resources on building an offensive-oriented military at a time when there are no threats to Russia.  Indeed, at a time when the U.S. defense budget has been cut, when the U.S. Army is being reduced to its lowest level since before World War II, the Navy its lowest level since World War I, and the USAF at its lowest level ever, there remains no credible excuse other than offensive operations for the ongoing, vast Russian buildup.

According to Sputnik, “This year, Sevmash is constructing Yasen-M- and Borei-A-class nuclear-powered submarines, the Kazan and the Prince Vladimir, as well as the multipurpose nuclear submarine Novosibirsk and the nuclear submarine Prince Oleg.” In 2014, the same shipyard constructed and transferred two Yasen- and Borei-class nuclear-powered submarines, the Severodvinsk and the Vladimir Monomakh.”

The same source also reports that the “Russian Air Force and Naval Aviation units are to receive Over 200 New Aircraft in 2015.  Also planned for future delivery is an updated long-range military transport plane…The IL-76MD-90A [long range cargo plane] was developed to transport a range of military equipment, armed personnel, heavy and long size vehicles and cargoes.” This is precisely the type of aircraft necessary for operations far from the Russian homeland.
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With no threat on its borders, particularly in light of Europe’s underfunded military and the withdrawal of American tanks from Europe in 2014, and the significant U.S. sequestration cuts, there is no defensive reason for the Kremlin’s costly and far-ranging military buildup.

The global reach of Putin’s military stretches far beyond Ukraine, which despite a recent agreement remains the source of ongoing fighting. It extends beyond Europe, which Moscow has threatened with Iskander nuclear missiles (there are no US or European equivalent weapons) and overflights by military aircraft. The United Kingdom’s RAF has had to deter Russian nuclear-capable Bear bombers away from its coast, a continuation of Moscow’s ongoing threatening military flights towards European airspace. Citing the imminent danger of the Kremlin’s military towards the Baltic states, UK defense minister Michael Fallon sounded a cautionary note of the “clear and present danger” against these NATO members.

Russia is aggressively moving to establish a military presence in Latin America. In February, Russian defense minister Sergei Shoigu penned military deals with Cuba, Niaragua and Venezuela.  The deals allow Russian naval vessels to dock in the Latin America, establishes joint military drills, and furthers  cooperation between the armed forces of the several nations.  The deal enhances relations already emplaced by weapons sales.

It is apparently not fashionable for the American press to report much on these matters, and the Obama Administration has demonstrated no significant level of concern.

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Washington heading for fiscal chaos

A look at recent statistics from the U.S. Treasury Department  are truly worrisome.

The federal government ran a budget deficit of $195 billion for the first four months of fiscal year 2015, the Congressional Budget Office (CBO) estimates—$12 billion more than the shortfall recorded in the same span last year. Revenues and outlays were both 8 percent higher than they were at this time a year ago. If lawmakers enact no further legislation affecting spending or revenues, the federal government will end fiscal year 2015 with a deficit of $468 billion, or 2.6 percent of gross domestic product (GDP). The deficit occurred even as receipts through January totaled $1,041 billion, CBO estimates—$79 billion more than the amount collected in the same period last year.  In January alone, the government had a deficit of approximately $17.5 billion, a dramatic increase from last year’s figure of $10.3 billion.

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The difficult political fact that Washington seems incapable of facing is that the federal government is far too deeply involved in matters better left to the states.  Until it re-orients itself to those functions that are constitutionally envisioned for it, the federal government will continue to plunge faster and more unavoidably towards fiscal chaos.

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U.S. increasingly vulnerable in space

Adm. Cecil D. Haney is Commander of the U.S. Strategic Command, or “Stratcom.”

Stratcom’s mission includes ensuring space-based assets are available to support military operations and that these high-demand resources are used efficiently and effectively to promote mission accomplishment.

Admiral Haney has noted that Space is vital not just for defense. “When you look at where we as a nation have gone in space and our dependency on it – not just militarily, but as a society at large – you realize how important it is and why we work that particular area,” he said. “There is just so much going on in space today that it clearly warrants our attention in how to operate efficiently and effectively and have that awareness we need [that enables people] to do everything from banking to understanding weather patterns.”

He is clearly concerned about recent trends. Speaking at an Air Force Association breakfast, he noted that The playing field in space is changing, and not always to the advantage of nations that are peaceful and have democratic governments, “Today, our nation is dealing with a global security environment that is more complex, dynamic and volatile than at any time in our history.” The security environment features multiple actors operating across all domains. Many actors challenge U.S. democratic values in many ways, the admiral said.
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“In addition to significant tensions involving nation states,” Haney told the audience, “we are in an environment that is flanked with numerous ungoverned or ineffectively governed areas that are breeding grounds for bad actors and violent extremist organizations.” These groups, he added, also use space and cyberspace to recruit and spread propaganda — including misinformation — in support of their causes.

“Perhaps of greater concern, however, is the proliferation of these emerging strategic capabilities attempting to limit our decision and maneuver space that ultimately impacts strategic stability,” Haney said.

The admiral focused on the emerging capabilities and what it means for the United States. Space is getting cluttered, he said, noting that it is more “congested, contested and competitive.” That alone makes U.S. capabilities increasingly vulnerable, he said.

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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.