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Going Rogue, Part X: Americans just don’t properly appreciate the EPA

Going Rogue, Part X: Americans just don’t properly appreciate the EPA


Americans do not fully appreciate the efforts of government to protect them from a wide variety of threats to their health and safety. This effort occurs to some degree at the more local levels, but the real champion of this grand effort is the federal government.

While many federal agencies contribute to this effort, one goes far beyond the others at trying to keep us safe: the Environmental Protection Agency, the EPA.

The EPA is so concerned for the safety and protection of the citizens of the U.S. that it has issued thousands of regulations requiring specific steps be taken to reduce or eliminate actual or potential harm. This agency is so concerned for our welfare that it has even required, under penalty of heavy fines, the use of things that are unavailable.

As part of the Renewable Fuel Standard the EPA required gasoline producers to use cellulosic biofuels, and in its paternalistic effort to keep us safe from threats real and imagined, the EPA fines producers for not using the required quantities of biofuel ingredients, even though those quantities are unavailable.

Not everyone is on board with the EPA’s magnificent efforts on our behalf, such as Sen. Joe Manchin (D-WV) and Nebraska Attorney General Jon Bruning, whose office is suing the EPA over greenhouse gas standards for new power plants. These standards are, according to the AG and the Senator, “impossible” to meet.

The U.S. Chamber of Commerce and energy industry groups have jumped on the anti-EPA band wagon by urging the United States Circuit Court of Appeals for the District of Columbia last August to strike down a federal rule limiting mercury and other toxic emissions from coal- and oil-fired power plants, saying the Agency used flawed methods to create unachievable emissions standards.

Even the EPA’s fellow federal agency, the State Department, has shocked Americans by daring to disagree with the ideological environmental dogma of the Obama administration.

When the State Department was performing an environmental review of the Keystone XL pipeline project, the EPA intervened. The pipeline project would carry crude oil from Alberta, Canada to refineries in the U.S., which supporters say would provide a big step toward energy independence. The EPA argued, however, that this pipeline should be treated differently than every other pipeline ever constructed in the country.

The State Department’s report found that the project would create nearly 2,000 jobs lasting for two years and would support more than 40,000 jobs, and further finds that the pipeline provides enough positives to negate whatever negatives the EPA believes may result.

Even the International Brotherhood of Boilermakers found reason to criticize the EPA’s zealous efforts to protect us from every conceivable negative influence in our lives. The Boilermakers’ President Emeritus Charles W. Jones states in a commentary on the union’s Web site, “particle and ozone standards will damage the economy without significantly helping the environment.”

The EPA has moved to make ozone and airborne particle standards so strict, in fact, “that former EPA administrator William Ruckelshaus has called them ‘an impossible standard of perfection,’" the commentary continues. “So strict that many U.S. electrical power plants, pulp mills, cement kilns, chemical plants, smelters, and manufacturing plants are expected to close down rather than try to meet them. Thousands of American workers could lose their jobs. So strict that many of the scientists on the Clean Air Scientific Advisory Committee (CASAC) cannot support them,” Mr. Jones states, citing the effects on his organization’s members.

Thirty-nine Congressional Republicans led by Senate Minority Leader Mitch McConnell (R -KY) are attempting to use a rare legislative tactic to block planned Environmental Protection Agency greenhouse gas standards that would limit the amount of carbon new power plants can emit. The rarely used Congressional Review Act enables the filing of a formal resolution of disapproval that allows Congress to block executive branch regulations that it considers onerous.

Last month, a federal court dealt a serious blow to the EPA's renewable fuels push by ruling that the agency exceeded its authority by mandating refiners use cellulosic biofuels because of their commercial scarcity, a determination that should not require legal action.

It is encouraging to see opposition to the tyranny of the EPA growing, and at last see meaningful opposition coming from Congress. However, the majority of this opposition comes from Republicans, while the timid Democrats mostly sit on their hands, allowing the executive branch to run roughshod over the legislative branch, while their constituents get crushed under the federal boot.

The Democrats simply look the other way, likely because the lead perpetrator of this unconstitutional behavior is one of their own. They ought to think a little (for a change) and realize that someday it may be a Republican in the position to abuse the office, and the Congress.

It is doubtful that any of this will have much of a positive effect on this out-of-control agency, which, because of its ideological blinders and the infection of uncontrolled zealotry that is the hallmark of the Obama administration, ignores the damage its policies and regulations do to the country it is supposed to serve.

As the New Year begins, government’s policies are still failing us

 As the New Year begins, government’s policies are still failing us
Commentary by James Shott

As the economic non-recovery crawls into 2014, the “good news” on the jobs front – that the unemployment rate dropped .3 percent in December to 6.7 percent – is far less impressive when you look beneath the surface.

The reason the unemployment rate dropped was not that a strengthening economy produced a sharply higher number of new jobs, as should be expected in a true recovery. December showed only a puny 74,000 new payroll jobs were added. Data from the Bureau of Labor Statistics (BLS) indicates that the drop resulted because five times that many people – 374,000 – became discouraged that they couldn’t find work and dropped out of the labor force.

Adding even a small number like 74,000 to a smaller labor force misleads us into thinking things have improved.

The BLS identifies June of 2009 as the official end of the recession, at which time the labor force participation rate was 65.7 percent (162 million workers). At the end of December, the rate stood at a pitiful 62.8 percent (155 million workers).

Using the size of the labor force in 2009 and the adding back into the equation the 7 million who have dropped out, the unemployment rate is just under 11 percent.

We should not celebrate a drop in the unemployment rate to 6.7 percent when 7 million Americans have given up looking for work because the economy still has not produced jobs for them.

Hopefully, the New Year will bring an infection of fiscal responsibility to our national leaders. It is interesting how liberals see global warming/climate change – a widely popular but unproven theory – as a true crisis, but don’t see years of budget deficits near and above a trillion dollars, and a national debt of nearly $17 trillion, as a problem.

President Barack Obama’s first year in office, 2009, saw a deficit of $1.4 trillion, which gets credited to George W. Bush, but contained the contribution of nearly $200 billion from the Obama stimulus. But over the next four years Mr. Obama racked up more than $4.2 trillion in deficits – FY 2010: $1,294 billion; FY 2011: $1,300 billion; FY 2012: $1,087 billion; FY 2013: $680 billion. This fiscal year the projection is a deficit of $744 billion, and the FY2015 deficit is projected at $577 billion.

To help put this in perspective, The Weekly Standard noted back in November of 2012 that, “According to the White House OMB, we ran up $1.8 trillion in real (inflation-adjusted) deficit spending during fiscal years 1942-45,” and that “we’ve now run up $3.4 trillion in real (inflation-adjusted) deficit spending under Obama — in less time than it took us to fight World War II.”

If there is good news in Obama deficit numbers it is that the deficits are coming down, but real good news would be Congress and the president taking concrete steps to get spending under control.

That seems unlikely, given Rep. Nancy Pelosi’s (D-CA) opinion that “The cupboard is bare. There’s no more cuts to make,” a position gleefully adopted by most, if not all, Congressional Democrats.

In her view there is no waste, fraud or abuse, despite more than ample evidence to the contrary, and there’s no unnecessary spending, either.

Senator Tom Coburn (R-OK) issues an annual report on government waste, and in “Wastebook 2013,” he lists 100 examples totaling $30 billion. Heaven only knows the total of all the wasteful spending of the federal government.

* The military has destroyed more than 170 million pounds of useable vehicles and other military equipment, approximately 20 percent of the total U.S. war material in Afghanistan, totaling $7 billion, rather than sell it or ship it home.

* The SuperStop is a $1 million bus stop complete with heated benches and sidewalks, and wireless zones for personal computers. Yet its roof doesn’t protect from the rain, snow, wind or blazing sun.

* One of NASA’s next research missions won’t be exploring an alien planet or distant galaxy. Instead, it is spending $3 million to go to Washington, D.C. and study one of the greatest mysteries in the universe — how Congress works.

* When officials at the Manchester Boston Regional Airport in New Hampshire installed new solar panels costing $3.5 million, they did not anticipate one quarter of them would not be used 18 months later because the reflection from the panels blinds pilots and controllers.

* The Treasury Department’s Inspector General for Tax Administration discovered the IRS paid up to $13.6 billion in false Earned Income Tax Credits in 2012.

* While millions of Americans continue to pay taxes on their hard earned wages, many federal employees are tax cheats, to the tune of $3.6 billion.

* The feds keep the lights on in empty and little used federal buildings, costing $1.5 billion.

* Out of the $33.5 billion in Pell Grants the federal government doled out last year, individuals posing as students took off with $1.2 billion.

When an elected public servant believes there can be no spending cuts in the face of such wanton waste, it speaks volumes about the integrity and motivation of that individual.

Federal spending is a giant problem that we had better address soon.


Cross-posted from Observations

Is Congress finally getting serious about spending and the debt?

Is Congress finally getting serious about spending and the debt?


The Congressional Fiscal 2014 Budget Conference Committee met for the first time last week. It is a bipartisan, bicameral committee that includes all members of the Senate Budget Committee, and the Chairman and Ranking Members on the House side, is about even politically, with 15 Democrats and 14 Republicans, but is heavily weighted towards the Senate, with 22 senators and seven representatives.

The budget reform panel was mandated in the bill that raised the debt ceiling and ended the government shutdown, and has until December 13 to find a budget compromise or face the likelihood of another government shutdown in mid-January when funding for the government runs out.

The group is reportedly focused on finding ways to replace across the board spending cuts, known as sequestration, with more sensible reductions in federal largess.

Representative Paul Ryan (R-Wisc.) is chair of the joint committee, and in opening remarks said that the debt held by the public has doubled in just the last 5 years and is only getting worse. It’s a drag on the economy, he said. With 10,000 Baby Boomers retiring every day, Medicare and Social Security are going broke.

The debt, he said, hurts economic growth and job creation, and noted the message from the Congressional Budget Office, which warned that if something isn’t done soon, there will be a debt crisis. “We’ve got to get a handle on our debt, and we have got to get a handle on it now,” he stated, and the way he believes we must work our way out of this is through tax reform, including getting rid of carve-outs and kickbacks, and through a growing economy, and not by raising taxes.

The federal budget is a huge mess. In FY2013 the federal government took in revenue of $2.8 trillion, but spent $3.5 trillion, and owes $17 trillion to debt holders.

This compares to a family of four that earns $36,000 annually, but spends $45,000 each year and has accumulated debt totaling $219,000. This family clearly needs to cut down on its spending.

But the federal government cannot do that. At least not if we believe House Minority Leader Nancy Pelosi (D-Cal.), who said in an interview in September on CNN’s “State of the Union” that “The cupboard is bare. There’s (sic) no more cuts to make. It’s really important that people understand that.”

Ms. Pelosi is apparently unaware that the federal government spent your tax dollars on such important things as exotic dancers, robotic squirrels, studying pig poop, and a reality TV show in India. And she also doesn’t know about the Government Accountability Office estimate of roughly $17 billion of improper Medicare payments each year, or the billions of dollars of mismanagement, corruption, and wasteful spending in federal housing subsidies, and the fraud and abuse in the food stamp program, school lunch, and child care programs, and in Veteran’s Affairs.

Maybe she’s forgotten that we pay people with our tax dollars at the NSA to record terabytes of information about us, and IRS employees to harass Republican/conservative organizations applying for non-profit status, and federal SWAT teams to kick down the doors of people whose student loans are in arrears and besiege a mine operation in Alaska to check for compliance with the Clean Water Act.

And then there are the 31 areas of spending on duplicative federal programs, spelled out in a report by the Government Accountability Office that waste billions annually, such as at least 23 different federal agencies running hundreds of programs to support renewable energy, and the 29 Department of Homeland Security contracts that partly or completely overlapped with research being done by another part of the same department.

Despite these examples of waste, fraud and abuse, and also despite the record $2.8 trillion in revenue the federal treasury collected in FY2013 – which provided President Barack Obama the opportunity to claim credit for a sizeable reduction in the annual budget deficit – Nancy Pelosi thinks that in negotiations about debt reduction “revenue needs to be on the table.”

But, no, Ms. Pelosi. You and your big spending comrades don’t get another dime.

Before the middle class or even the wealthiest Americans are further burdened with additional taxes, the federal government needs to get its act together and start operating efficiently. It must eliminate the billions of dollars in waste, fraud and abuse, and eliminate duplication.

Taxes should be evenly applied and high enough to support only essential government services. And, the most important word in that concept is “essential.”

Congress must get rid of carve-outs and kickbacks, eliminate pork barrel projects, stop the unconstitutional passing of Congressional responsibility to Executive Branch agencies, and restrict legislative activity to necessary and useful laws.

And the federal government must begin to operate with an attitude that demonstrates the obligation every federal worker – from the President of the United States, to Cabinet Secretaries, to Members of Congress, to the lowest paid employee – owes to the people they work for, the taxpayers. Perhaps then each of them will earn through job performance the high status some of them assume they are due “just because” they hold a high elective or appointed position.

"Living wage" mentality reflects misunderstanding of business reality

"Living wage" mentality reflects misunderstanding of business reality

Fast food workers in seven cities were on strike last week demanding a "living wage" of $15 an hour, more than twice the $7.25 they currently make. Empathy aside, this expectation is a fantasy.

Every job has a value, but it is based not on what the person who has the job thinks it should be worth, or what sympathetic observers think it should be worth, but on its role in the business.

How important is the job to the business, compared to other jobs? Are other people who can do the job a scarce commodity, or are there thousands of them? Some jobs require substantial training, while others do not, and individuals with the required training deserve higher pay than those without training. Minimum wage jobs in the fast food industry require no formal training; the worker can learn on the job, and while the worker is learning to do the job satisfactorily, the boss endures lower-than-necessary productivity.

Who exactly works for the minimum wage? These jobs are entry-level work intended for people just getting started in the workaday world, like students trying to earn a little money while pursuing their education, or people with little or no skills or experience looking to get some skill and experience. About half of the 1.6 million minimum wage workers are under 25 years of age. The minimum wage is not intended to be, and cannot be, a “living wage.”

The minimum wage is, indeed, a low wage, but most of those workers get a raise in less than a year, and there are fewer of them today than in the past. The number of people making at or under the minimum wage today is 28 per 1,000 wage and salary workers, while in 1976 there were 79 per 1,000 wage and salary workers.

Most employers want the best workers they can find, so if most workers produce 10 of something an hour and Joe can produce 12 an hour, or if Mary’s work is of higher quality than other employees, the boss is likely to give them a raise to keep them on staff.

For people in minimum wage jobs with few or no skills, demanding their salary be doubled to a "living wage" is somewhat akin to high school students demanding they be given a college diploma. And anyone earning minimum wage that is unhappy with it can go look for a better-paying job. If they can't find one, do their best at the current job, and get some training that will qualify them for something better.

An organization calling itself Socialist Alternative illustrates graphically the failure of a “living wage" minimum wage in an article titled "Profit is The Unpaid Labor of Workers."

"Hypothetically, lets assume that our job pays $7.50 an hour and our boss wants us to work for twenty hours," the article says. "At $7.50 an hour for twenty hours, that’s a total of $150. In that same period of time, however, the work we do will probably make $300, $400, or $1000 worth of pizza."

And here's where it gets good: "What does this mean? Just for arguments sake, lets assume we only create $300 worth of pizza. After our boss gives us $150 for our week’s worth of work – meaning our own labor essentially pays our wage – he is left with an additional $150 that he did not work for."

There’s a brilliant bit of insight hidden in that paragraph: "our own labor essentially pays our wage." To the socialist mentality, the only cost of running the pizza parlor is what the boss pays the pizza maker. Everything else – flour, sauce, pepperoni, cheese, insurance, rent/mortgage, electricity, water, sewage, trash pickup, taxes, fees, etc. – the boss apparently gets for nothing, and the money collected for the pizza that is not paid to the pizza maker is ill-gotten gains.

The "living wage" strikers similarly do not understand business, and what happens when wages go up. Raising the minimum wage requires a commensurate raise in all wages, to avoid causing strife among the other workers, and that means price increases that make the business less competitive. That could lead to staff cutbacks or ultimately closing the business.

The strikers and the socialists fail to understand and appreciate the investments of the owner(s), who may have mortgaged their home to finance the business, and managers of larger businesses, who usually have spent years in training and working to get where they are, perhaps starting as a minimum wage employee themselves.

Owners get whatever is left over after everyone else – employees, venders, lenders, taxes, etc. – have been paid. Often, particularly in the beginning or during hard economic times, that is little or nothing. And, few employees work as hard as the owner of a small business, and particularly a new business, yet the Socialist Alternative begrudges them making a decent return on their investment of capital and time.

It’s easy to criticize the boss from the sidelines. The best course for these critics would be their forced entry into the business owner’s world. At their own expense, of course. They would undoubtedly see things differently in short order.

The Obama “War on Coal” is a disgusting government over-reach

The Obama “War on Coal” is a disgusting government over-reach




President Barack Obama continues working to destroy the coal industry, most recently by changing carbon emission standards in such a way that a) coal-fired power plants will be heavily affected, b) encourages plant owners to convert to natural gas, and c) will discourage the construction of coal-fired plants overseas.

Rather than work to solve the very real problems of the nation – like unemployment, the economy, his scandal-ridden administration and the troubles on the international scene – he chooses to fight a war on coal through agencies like the Environmental Protection Agency, which impose extreme regulations and severe penalties on the industry.

Federal agencies routinely put regulations in effect without regard for the chaos and harm they will cause. Coal mining and related job losses and other financial repercussions just don't matter to the president and the bureaucrats. To them, the jobs of tens of thousands of Americans and the economies of 27 states are far less important than their narrow ideological goals.

These agencies criminalize behavior through regulations and impose fines or jail time as if those regulations were law. But according to Article I of the U.S. Constitution, only Congress can make law.

These agencies create regulations and penalties because Congress repeatedly fails to determine how measures it passes should be implemented, and allows or directs the Executive branch to decide how to do that. But the Constitution does not provide the Legislative branch the authority to transfer its law-making obligation to Executive branch agencies.

The Founders deliberately set up a tripartite government with specific and limited roles for each of the branches and a system of checks and balances specifically to prevent any of the three branches from assuming too much power, all based upon the concept of a limited government with few and specific responsibilities.

Briefly summarized, the Legislative branch makes laws, the Executive branch administers and enforces laws, and the Judicial branch rules on questions of law and operates the court system.

By abdicating its duty to complete the lawmaking process, and leaving part of that function to the Executive branch, the Congress has failed in its fundamental duty, which is a basic tenet of the Constitution, and it abets the Executive branch in developing its evolving tyrannical persona.

Since the nation's law-making authority resides with the Legislative branch, the rules and penalties federal agencies wield so freely and often arbitrarily are void of any true authority. It is time, therefore, for the people and the states to stand up and say, like Howard Beale in "Network": "I'm as mad as hell, and I'm not going to take this anymore!"

The federal government collectively does not have the authority to target a given industry for destruction, and the Executive branch darned sure doesn't have that authority all by itself.

If any one or more of the 27 states that mine coal want to mine continue doing so, they need to do it as responsibly as is possible and feasible, and tell the federal government officially and formally to buzz off. The time-honored mechanism for restraining an over-reaching federal leviathan is known as "nullification."


The United States seems to be infected by a philosophy like that expressed by entertainer Britney Spears, whose inferior talent actually looks good compared to her abysmal thinking: "I think we should just trust our president in every decision he makes and should just support that, you know, and be faithful in what happens."

Fortunately, Ms. Spears' naive reasoning was not shared by Thomas Jefferson, who had a better idea and suggested that rather than just sit back and allow a president or Congress or judges to arbitrarily alter the meaning of the Constitution, we must make only those changes that have popular consent and do so through the amendment process, which the Founders sensibly included in the Constitution.

Not all amendments have been good ones, of course, as evidenced by numbers 16, 17, and 18 (which was repealed), but that process is far superior to what we have done and are doing to the first 10 amendments the other way.

It is indeed sad to observe the embarrassing and shameful lack of knowledge and understanding of the founding principles of our country and how legions of Americans who don't know or understand them threaten our very survival as a free nation.

But as bad as that is, it is far worse when our elected officials, who took an oath to "preserve, protect and defend" the United States Constitution, share in this ignorance. Or worse, if they ignore their oath in favor of not preserving, protecting and defending the Constitution in order to "fundamentally transform the United States of America" to meet some foreign ideological vision.

Just how many of our 535 elected representatives in Congress and the hundreds of thousands of other federal employees – including the president and his cabinet – really understand the supreme law of the land, the United States Constitution, is unknown. But watching Mr. Obama's behavior and the behavior of the rest of the government suggests that number is horrifyingly small.

Ignorance is bliss, they say. But not in our government.

Foolish big-government policies continue to impede economic recovery

Foolish big-government policies continue to impede economic recovery


Economic news continues to be slightly positive, with May's numbers a mixture of good and bad.

Unemployment ticked up one-tenth, from 7.5 percent to 7.6 percent and, oddly, that isn't as bad as it seems, because 420,000 people who had dropped out of the labor force thought that the environment had improved sufficiently to start looking for work again last month. Had those folks remained on the sidelines, the rate likely would have held at a too-high 7.5 percent. However, 101,000 of those new job-seekers didn't find work, pushing the unemployment rate up.

The influx of new job-seekers, however, moved the labor force participation rate from 63.3, a 34-year low, to 63.4.

New jobs totaled 175,000 last month, a little better than the 155,000 average of the last three months, but most were low-paying jobs that are not likely to increase consumer spending. And that number is well below the number needed monthly to make real progress in lowering the unemployment rate. The Federal Reserve Bank of Atlanta's calculator shows that more than 400,000 new jobs per month will be needed to get the unemployment rate down to the full-employment level of 5.0 percent in a year, and nearly 261,000 new jobs a month to hit 5.0 percent in two years.

Four years after the $1 trillion stimulus package that was supposed to generate a 5.1 percent jobless rate, we are still a long way from that number with unemployment 50 percent higher than that. And as long as consumer confidence remains low and business uncertainty remains high, unemployment will not change much.

Businesses that scaled back workers during the recession continue operating with fewer employees, uncertain of how their costs may increase through higher taxes and costs related to health care reform, and won't hire more workers until those uncertainties are put to rest, or until there is a surge in consumer demand. However, consumers also are nervous about spending in the current economic environment, and are waiting for stability.

Last Thursday's Labor Department numbers showed that non-farm productivity, defined as output per hour of all workers, rose at a 0.7 percent annual rate in January through March, reversing the trend in the last quarter of 2012, as the economy sputtered.

One explanation for the recent pickup is that businesses saw higher demand for products and services over the winter, and that typically leads to higher wages for workers, ultimately improving living standards. However, it might also mean that employers are getting more out of their current workforce and thus have no urgent need to hire, which does not improve the unemployment picture.

On the topic of health care reform, the public has never embraced the Affordable Care Act known as Obamacare, and is even less enamored of it today, according to a new Rasmussen Reports national telephone survey.

Rasmussen found that only 41percent of the 1,000 likely voters that participated now hold at least a somewhat favorable opinion of the health care law, while 54 percent view it unfavorably. A tiny 15 percent view Obamacare very favorably, while 40 percent have a very unfavorable view of the law.

A slightly better rating appears in the new NBC News/Wall Street Journal poll, which shows that 49 percent of Americans say they believe the Affordable Care Act is a bad idea, while just 37 percent say it is a good idea. Like the Rasmussen poll, the NBC/WSJ poll had a substantial number of participants who strongly believe Obamacare is a very bad idea, at 43 percent.

These numbers reflect an increase in unpopularity since July 2012, when 44 percent of NBC/WSJ poll respondents called it a bad idea, while 40 percent called it a good one.

Some of the reasons for this unpopularity are that while the Affordable Care Act promised to lower premiums for families, regulators decided to impose a 3.5 percent surcharge on insurance plans sold through federally run exchanges. There also is a $63 fee for every person covered by employers, and a "premium tax" that will require insurers to pay more than $100 billion over the next decade. The Joint Committee on Taxation expects insurers to simply pass this tax onto individuals and small businesses, boosting premiums another 2.5 percent.

Earlier this year, the Congressional Budget Office said that 7 million people will likely lose their employer coverage thanks to Obamacare — nearly twice its previous estimate. The CBO said that number could be as high as 20 million.

And in December, state insurance commissioners warned Obama administration officials that the law's market regulations would likely cause "rate shocks," particularly for younger, healthier people forced by Obamacare to subsidize premiums for those who are older and sicker.

Combined with the other liberal policies that have caused the recovery to stall for four years, the unpopular federal takeover of health care deepens uncertainty for businesses and raises insurance and health costs for consumers. Then there is Obamacare's planned involvement of the IRS.

A stagnant recovery and pain and suffering are what happens when the narrow ideological dreams of the ruling elite take precedence over addressing the real needs of Americans.