Democrats Headed for a Train Wreck

Intolerance has captured the Democratic Party, and arrogance will destroy its grip on power.

On marquee issues—health care, cap and trade, and the recession—Democratic leaders are unwilling to listen to the legitimate concerns of center-leaning voters and business leaders who made possible their victories in 2008.

Many Americans support universal health care but want a system like the Netherlands built on private insurers. Yet, many Democrats insist on a public entity or government-like nonprofit, and an 8 percent payroll tax on businesses that don’t provide health insurance.

Retailers, small manufacturers and other businesses paying workers less than $80,000 annually will find it cheaper to drop their plans and push folks into the public option.

Clinton Labor Secretary Robert Reich recently claimed private insurers don’t compete, because of antitrust exemptions. Anyone who chooses from an employer list of plans knows private insurers offer competing ranges of coverage and cost. Anyone who took Econ 101 knows the number of competitors, not the strong arm of government, determines the opportunity to fix prices and collude.

Cap-and-trade legislation moving through Congress would reduce U.S. C02 emissions by imposing a system of purchasable permits, but raise costs in energy-intensive industries like petrochemicals, aluminum and automaking.

China is not implementing a similar system, and cap-and trade would cause U.S. manufacturing jobs to move across the Pacific where CO2 use restrictions would not apply, increasing global pollution.

Businesses and moderate senators have petitioned the President to endorse a cost equalization tax on imports from countries that do not restrict CO2 emissions. This would better protect the global environment and be consistent with World Trade Organization Law, but the President calls such a policy protectionist.

China has a $400 billion stimulus package, and its economy is firing on all cylinders. President Obama has an $800 stimulus but prospects for the U.S. economic recovery are fragile.

Obama’s stimulus was focused on tax cuts, which went into saving, not spending, and shoring up employment in state and local government budgets, which was not needed and had little effect.

The private sector has shed nearly seven million jobs since December 2007. Through February 2009, state and local governments added 128 thousand jobs, and since the stimulus was enacted, those have shed 7 thousand jobs.

The Bush Administration was not any better. Bent on tax cuts, it did nothing to fix health care—its prescription drug plan drove up costs for most Americans—and it ignored pressing environmental issues.

When those who govern view those who disagree with them as “evil mongers,” in the words of Senate Majority Leader Harry Reid, they become blind to facts and deaf to reason.

Democrats appear to be girding to push through health care reform without the features moderate voters want. After that, perhaps cap and trade and more stimulus spending.

Moderate voters won’t be happy. Factor in unemployment around 10 percent, and the Democrats’ grip on Congress may fall sooner than pundits believe possible.

Comments

[Mr. Big:]

Well, this is what happens when a party takes control over both houses....

Obama is taking the "I know what's best for you" attitude in his leadership. Sometimes, this is ok because we all look to leaders to know what's best for us. However, leaders falter when they close their ears completely to any opposition to their views. This is the danger.

So here we have a leader, Obama, who has rolled the dice and has bet all-in. This is very precarious because he has unilaterally put the entire country on one path.... where the end game can either be mediocrity or disaster. There are no alternatives. There is no Plan B. He has, on many occasions, said that this was an "inherited" problem. Well, we don't want to hear that! He was elected to fixed these problems....not to give us the incessant excuses that it was the previous adminstration that put him in this predicament.

At any rate, Mr. Obama turned out to be the lesser of two evils. If I had to, again, pick between Obama/Biden and McCain/Palin, I'd most likely choose Obama again. But this time, my choice would be based on the fact there are no other better alternatives....not because I have confidence in Obama's capabilities.....

Aug 19 01:26 PM

[Living4Divi...:]

Pete - I am not pro-Democrat. However, I feel that you are being unfair to the Dems. The slow-motion train-wreck started long before the current Dem administration got into power. The problem is that now that they have a super-majority, they are focusing on pushing the Democratic platform - which is nationalized health-care and cap-and-trade. One wonders if this platform is any worse than the platform of "Invade Iraq." I question the wisdom of implementing the cap-n-trade agenda right now, while I feel it is a worthy endeavor, because global warming is a fact, is this really appropriate to implement right now, given the state of the economy? Furthermore national healthcare (which I believe is the only way to lower healthcare costs) is also a great idea. Still, the idea of raising taxes during a depression rattles my soul.

The Dems have been waiting along time to implement the sweeping social agenda, the super-majority has given them the votes, and the Dems are wasting no time implementing long term objectives of the Dem party. What else do you expect them to do?

On the handling of the economy, not all credit (or blame) can be laid at the feet of the Dems. The Fed has been a big driver of the economy fixing process.

As for Dem stimulus packages ( While the Republicans also had their own stimulus packages too ) - the following wastes of money stick in my craw:
1. The Bailout of Detroit (average cost of labor+bennies is $75/hour)
2. Cash For Clunkers (a huge waste of money - much of it going to Foreign car makers)
3. Any sort of make-work programs

The make-work programs are especially bad. It takes a long time to ramp up these Federal programs. For example, we have been in a recession for a long time, yet how many make-work projects are there now? So by the time these projects get ramped up it will be too late. Furthermore, once these make-work projects are started, they have a hard time stopping once employment picks up.

Aug 19 01:48 PM

[Nibiru.px:]

It appears to me, that the same {doing it the way
they want--all others be damned.} is what the Cheney Bush Admin did.... it also is what everybody says when they didn't get it the way they envisioned it should be.... and I believe that this statement has been repeated over and over throughout the years and different administrations... not to take away from its truthfulness.... it's just the thought that comes to me when ever I hear it.


On Aug 19 11:19 AM Larry House wrote:

> This isn't the first time, but it seems the party in power just has
> to self-destruct. The Dems are doing it at a record clip. They
> are determined to increase the size and scope of government, and
> not even the voters are going to stop them. We may see a bigger
> backlash in the 2010 elections than we saw in the mid '90s. It is
> clear fixing a problem is not their goal--it is doing it the way
> they want--all others be damned.

Aug 19 02:05 PM

[John Bowman:]

"I'm mad as hell and I'm not going to take it any longer"

Yes, but who do you direct your anger to when both parties are clueless?

Aug 19 02:17 PM

[GeminiAtlas:]

Yes, I think I read somewhere that the US has an estimated 200M small arms (i.e. guns) of the 700M in the world. That's close to a third of the guns of the world in the hands of 1/20th of world's population. That's one reason any plans to invade the US Red Dawn-style would quickly be unworkable. In any case, any potential despot would have to find a pretext to take the guns (and ammo) away first. That's what happened in many other "utopian" regimes in the past, and those didn't turn out too well.


On Aug 19 01:19 PM baldskits wrote:

> We have more guns than people in the United States. When the people
> get pissed off enough, we will have a revolution. Just 10% of the
> population would be an army of 30,000,000 armed people. The French
> Revolution occurred with the less percentage.
>
> The things to change: Corporations are not persons because they cannot
> vote! Therefore, they cannot donate to politicians. This would clean
> up politics. Supreme Court term limits.

Aug 19 02:20 PM

[Howard_T:]

The CARS (or Cash for Clunkers, if you must) is by most current assessments considered a success. (Let's disregard for the moment the arguments of short-term gains being offset by long-term effects) As good as CARS might have been for sales, I read this morning that roughly half of the 425 dealers in the Greater New York Automobile Dealers Association are no longer offering the program. The reason is that they have not yet been reimbursed by the government for the rebates that they have given to their customers. In short, they just don't have the cash to continue. Now imagine you are a health care provider servicing patients under a government health care plan (This is the case right now under Medicare/Medicaid). You provide the services, using your valuable time and some material resources, but have to wait a long time to receive your "pay". How long will it be until providers begin dropping out. This is already the case in Great Britain, where vacancies in health care jobs have risen greatly in the past year. The arrogance of the Obama administration is frightening, but then I suppose I shouldn't worry. Any liberal will tell me that it's all for my own good to save me from myself.

Aug 19 02:39 PM

[rosey99:]

Anyone who thinks we really have two distinct political parties is smoking crack. After all it was Clinton who continued the deregulation gravy train started under Reagan, and it was the "ultra-conservative" GW Bush that launched two wars, while cutting taxes three times, and threw in medicare part D just to make sure we were well and truly screwed. Unless you're a gun nut, or an abortion activist (of either stripe), or merely a simpleton, it's obvious that "conservative" and "liberal" have lost their meanings. The only word that describes both parties is "corrupt."

On Aug 19 12:27 PM Bob 123 wrote:

> President Obama is turning out to be another Bill Clinton, not a
> Jimmy Carter. Carter at least tried to do what was right, for which
> his own party joined ranks with the Republicans to destroy him.<br/>

Aug 19 03:33 PM

[whidbey:]

First the gods make mad those they would destroy.

Hubris is the enemy of survival in power and we may see it again.

Of course corruption was the undoing of Bush.

The pot holes are so deep and so many. On nights like this Master, let us just go back to the plantation and pretend we never left.

Aug 19 03:37 PM

[Paul in Texas:]

I agree with baldskits: "The things to change: Corporations are not persons because they cannot vote! Therefore, they cannot donate to politicians."

Although I would take it one step further: Only US citizens (individuals)should be allowed to donate to US politicians or US political organizations. That would eliminate all corporations, unions, and non-US citizens.

Aug 19 04:06 PM

[Paul in Texas:]

On Aug 19 03:33 PM rosey99 wrote:

> Anyone who thinks we really have two distinct political parties is
> smoking crack. After all it was Clinton who continued the deregulation
> gravy train started under Reagan, and it was the "ultra-conservative"
> GW Bush that launched two wars, while cutting taxes three times,
> and threw in medicare part D just to make sure we were well and truly
> screwed. Unless you're a gun nut, or an abortion activist (of either
> stripe), or merely a simpleton, it's obvious that "conservative"
> and "liberal" have lost their meanings. The only word that describes
> both parties is "corrupt."

I think "conservative" and "liberal" still have meaning whereas "Republican" and "Democrat" have lost their distinction.

Aug 19 04:14 PM

[The Geoffster:]

The left wing of the democratic party was convinced it could push through its agenda because it had just elected the most left wing president in American history. The right wing of the republican party thought the same thing when they elected Bush/Cheney. The kook wings of both parties are ideologues who have no use for the majority of voters who fall somewhere in the middle. They view compromise as a violation of their principles.The elected leaders of both parties have shown no interest in upholding their oath of office to preserve and defend the Constitution.

Aug 19 07:32 PM

[Donkey Kong:]

I'm a little confused by the bearish outlook implied in this article while Dr. Morici is constantly talking up the U.S. equity markets with his fellow shill, Larry Kudlow. So the market is up 50% DESPITE the terrible economic policies of the Obama administration? That makes no sense.

The Obama administration and their enablers in the media think they can save the banks and the economy by "talking up the markets" i.e. green shoots, other BS. Unfortunately, the impact is only temporary because we refuse or are unwilling to fix the structural flaws in our economy.

Aug 19 08:13 PM

[DuffBeer:]

Being from the Chicago area I see Mr and Mrs Teleprompterman in a much different light them most.
He is the chosen one check out Wickepedia for his very lengthy bio. Remember who his friends really are and how they would like to see the United Socialist States be a reality .
Oh how about Mr Soros and his financing of this leftist from the City That Works , what did you expect to get when he got the throne ???
The power will destroy as it has all other political parties who had majority control
and abused it. I am for gird lock in Washington DC ,that works the best.

I saw his rise through power and I hope I see him fall from power and the sooner the better for all of us !!!
He may take away our beer and redistribute it in some sort of beer give away program.
Geezz
Cheers, DuffBeer

Aug 20 12:02 PM

[Burticus:]

Our country is being destroyed and looted by a two-headed monster that must be slain. If we do not turn things around 180 degrees immediately, our path inevitably leads to either tyranny & slavery or violent counter-revolution.

My strategy: Fire 'em all. No elephants. No jackasses. No chances. No prisoners. No exceptions. Vote third party.

Trend forecaster Gerald Celente predicts the meteoric rise of a third party. The Constitution Party is the third largest and fastest growing political party in America and has the best platform of the non-major parties. ALL their shots are grouped in the bullseye, while the Libertarians and other minor parties all have major platform flaws. Unfortunately, as Mr. Bern says above, many people are turned away by the CP's religious preamble. Judging by their comments, many S.A. readers are well-informed free-enterprise constitutionalists who should embrace the Constitution Party platform. I encourage everyone to check out their platform and judge for yourself. This party needs support AND CANDIDATES from the investment community.

www.constitutionparty....

Disclosure: Long physical silver, CEF, steel, lead, food, pitchforks, torches and hangin' rope.

Aug 20 12:12 PM

[Windsun33:]

And there lies the major problem. When Republicans had control, their major objective seemed to be if they could outspend the Democrats, and who could they pander to the most. It seemed that it turned into a race as to who could get the deficit the highest and fastest.

While I agree that the Dems are on the path to self destruction yet again, this time it may drag a lot of Pubs along with them.

There is a reason why there are now more Independent registered voters than those for either party.


On Aug 19 02:17 PM John Bowman wrote:

> "I'm mad as hell and I'm not going to take it any longer"
>
> Yes, but who do you direct your anger to when both parties are clueless?

Aug 20 12:49 PM

[Christopher...:]

I said from the moment that Obama was elected that it was Jimmy Carter getting elected all over again. With all this money being printed we are going to have double-digit inflation just like in the 1970's and early 1980's. It is my prediction that we will have another Reagan (Ron Paul) elected in 2012 and another Volcker (if not Volcker himself) to tame this hyperinflation all over again. "One man with a printing press can destroy a nation faster then 1000 savage armies."

Aug 21 02:04 AM

[H. T. Love:]

I have always objected to PACs as just another way for corporations to influence politicians using their employee's money, after convincing the employees through various means.

When I worked for a big comany I refused to contribute for that reason. I felt then, and still do, that they were just another way around the intended mechanism of democracy.

And like you, corporations are not citizens and have no "inalienable rights". They have only the right to expecta a fair and balanced playing field constructed by the rule of *law*, not political influence.

HardToLove

On Aug 19 04:06 PM Paul in Texas wrote:

> I agree with baldskits: "The things to change: Corporations are not
> persons because they cannot vote! Therefore, they cannot donate to
> politicians."
>
> Although I would take it one step further: Only US citizens (individuals)should
> be allowed to donate to US politicians or US political organizations.
> That would eliminate all corporations, unions, and non-US citizens.

Aug 21 08:00 AM

[BulletBobHayes:]

Netherlands built on private insurers? Which country?

Aug 26 06:47 AM

[BulletBobHayes:]

Jimmy Carter had nothing to with the inflation at the time. And I don't think Ron Paul has no chance to ever win an election let alone a Republican primary


On Aug 21 02:04 AM Christopher Hossli wrote:

> I said from the moment that Obama was elected that it was Jimmy Carter
> getting elected all over again. With all this money being printed
> we are going to have double-digit inflation just like in the 1970's
> and early 1980's. It is my prediction that we will have another Reagan
> (Ron Paul) elected in 2012 and another Volcker (if not Volcker himself)
> to tame this hyperinflation all over again. "One man with a printing
> press can destroy a nation faster then 1000 savage armies."

Aug 26 06:55 AM

[datadave:]

You're much better on C-SPAN Peter. Just bashing the Disorganized party isn't enough. You got one thing right. Tax Cuts don't work. Clinton raised taxes on the rich and we then had a big recovery due to Investments into the Infrastructure (and cities and towns)-- more public workers, more money for roads and parks and off we went on the greatest peace time recovery in a long time. Compare that with Reagan's tax cuts for the rich which led to three back to back recessions. I don't think tax raises on middle class people and small businesses are helpful though. I am just talking about taxing the top One to Two percent at a much higher rate. And a short term Sur Tax (which worked brilliantly in my state in '89 Vermont under a Republican gov.) to fund infrastructure improvements: Bridges and roads, education, etc. Even a public works program like the CCC of the Depression era would be good for the many unemployed construction workers who have no hope at the moment.

and we need Socialized Medicine and Socialized Banks (which is a reason that China's banks are doing so well for their economy). But despite what you say mainstream Democrats are a mousey, centrist bunch that'll get little done and that's the reason your titile is apt.

Great performance on Cspan, bub!! Hope to see more of you (Sept. 27, )

Sep 27 10:38 AM