Just in Time for Hillary to Declare: Bill Clinton and the Retroactive Application of Mitchell’s Golden Rule

This was originally posted at International Liberty.


It’s amazingly simple to reduce the burden of government spending. Policy makers simply need to impose some modest spending restraint so that government doesn’t grow faster than the economy’s productive sector.

In a display of humility that can only be found in Washington, DC, I call this Mitchell’s Golden Rule.

And, amazingly, even the International Monetary Fund agrees that spending caps are the most effective strategy for good fiscal policy.

Since I’m not a fan of the IMF, this is definitely a case of strange bedfellows!

Let’s look at some case studies of what happens when there are limits on the growth of government.

A review of data for 16 nations reveals that multi-year periods of spending restraint lead to lower fiscal burdens and less red ink.

Hey, Barack Obama, businesses are moving overseas because of a terrible tax climate made worse by you

There’s been a lot of talk lately from President Barack Obama and administration officials about “economic patriotism.” They say that corporations shouldn’t be allowed to move overseas to escape paying the corporate income tax.

“Even as corporate profits are higher than ever, there’s a small but growing group of big corporations that are fleeing the country to get out of paying taxes,” President Obama said at a stop in Los Angeles on Thursday. “They’re keeping, usually, their headquarters here in the U.S. They don’t want to give up the best universities and the best military and all the advantages of operating in the United States. They just don’t want to pay for it. So they’re technically renouncing their U.S. citizenship.”

Earlier this month, President Obama suggested that Congress (read: Republicans) lack “economic patriotism” to work with his administration on issues the country faces. Treasury Secretary Jack Lew dropped the same term in a letter to Senate Finance Committee Chairman Ron Wyden (D-OR) as he urged Congress to pass legislation to end corporate inversions.

“What we need as a nation is a new sense of economic patriotism, where we all rise or fall together. We know that the American economy grows best when the middle class participates fully and when the economy grows from the middle out,” Lew wrote in the letter to Wyden. “We should not be providing support for corporations that seek to shift their profits overseas to avoid paying their fair share of taxes.”

Ex-Im Is The “Face of Cronyism,” Says Jeb Hensarling

Crony capitalism is America’s disease and the real problem with the modern perception of capitalism that most of the left likes to use against capitalism itself, without discerning between what voluntary trade and free markets can accomplish and what crony capitalism actually is all about.

It’s very easy to find perfect examples of crony capitalism in the age of President Barack Obama.

One of these perfect examples has been relying on taxpayer money to subsidize financial incentives destined to foreign companies that purchase U.S. exports: the Export-Import Bank.

The agency’s charter expires in 2014, making now the perfect time for opponents of crony capitalism to raise their objections to the agency’s upcoming congressional renewal. Heritage’s The Foundry talked to Rep. Jeb Hensarling (R-TX) about the Export-Import Bank and why he thinks that the federal export-subsidy agency should not be allowed to stay in business.

Salon: Communism’s Just Misunderstood

The athletes are beginning to arrive in Sochi, and with them a different kind of protest than the ones seen in Russia leading up to the games. The local Communist Party, it seems, prefers a quieter tack than the protestors that took to the streets in the preceding months in the frozen land to the north:

About 12 kilometers (seven miles) from the nearest Olympic venue, a handful of curious onlookers, a few mothers pushing young children in carriages, two TV cameras and a sprinkling of uniformed and plain-clothed police were there to witness Igor Vasiliev, leader of Sochi Communist Party Branch, and six supporters stage a peaceful rally on Saturday.

Russian authorities are allowing public demonstrations during the Olympics, but there’s unlikely to be massed angry mobs of people protesting against the kind of issues in Russia that have gained international attention ahead of the games.

“Liberals Have No Idea How Capitalism Works” Says Rand Paul

Listening to lawmakers talk about the economy when they do not understand the mechanisms behind capitalism can be quite frustrating. Too often, they are unaware of how the system works and why it gives rise to affordable services and products, making trade and the distribution of several products, from basic to valuable items, accessible to nearly almost every American.

But every now and then, a legislator comes along to prove that they weren’t only elected to brag about passing complicated laws on national television.

Sean Hannity had Sen. Rand Paul (R-KY) as a guest on his show to ask him a few questions regarding ObamaCare, the problematic Health Insurance Marketplace website and why Americans are appalled to have learned that their insurance premiums are actually much higher now than they were before the law kicked in.

According to Sen. Paul “if you mandate what is included in your insurance policy, if you say it has to cover all kinds of new things that haven’t been covered, it has to be more expensive,” which is why so many young and healthy people are quickly discovering that their coverage is much more expensive than before. While the Obama administration is attempting to give access to health coverage to every single American through ObamaCare, the final cost was apparently never taken into consideration.

The administration keeps repeating that people will now get better coverage without having to pay as much, but consumers are slowly learning that that is simply untrue, since all they have access to is insurance premiums offering excessive coverage that do not fit their budget.

Dysfunctional Bedfellows: Free Speech, Capitalism and Social Media

Enjoy Capitalism

Libertarians and conservatives alike either are intimately aware of problems with speaking out on social media, or they are residing under virtual rocks. In spite of the proliferation of liberty-minded individuals on networks like Twitter and Facebook, those platforms are anything but welcoming to freedom-oriented content.

On Twitter, there is the hated “gulag” that silences conservatives by exploiting an auto-account suspension rubric, or at least that is the explanation offered by the company. As for Facebook, it’s often turned into page suspensions and deletions for gun dealers, and conservative or libertarian commentators.

Now, Facebook has ended up in the headlines over problems with questionable content. They are now going to take a much more proactive stance when it comes to hate speech on their network. Of course this was at the behest of at least one feminist organization. That is not to say that this wasn’t necessary. Of course, there should be serious action taken to prevent content that promotes violence against anyone. However, this is definitely political pandering, and arguably for the benefit of the least profitable portion of Facebook’s “clientele.”

“A Revolution to Overthrow Capitalism”

OWS goons

A few weeks ago we brought you a video from an Occupy meeting where the stated goal was to overthrow capitalism. A few commenters took issue with this, claiming it was an isolated statement and that Occupy is a loose-knit group.

I had the opportunity to be with the Occupy protesters at the RNC and the DNC over the past few weeks and I can assuredly tell you that it is not an isolated statement.  True, there are many groups represented at the demonstrations, and maybe not all of them will outright say that they want to overthrow capitalism. But when you promote a socialist economy, by definition you are advocating the overthrow of capitalism.

I covered the “March on the RNC” in Tampa and was able to have a conversation with a socialist marcher about the economy:

A few of his comments deserve special attention.

“We need to tax the wealthiest people in the country, who aren’t paying their fair share - it’s not shared sacrifice for them.”

This is a common refrain among not only the Occupy movement but among liberals in general.  Consider that the top 20 percent of earners - going way beyond the famed 1 percent - makes a little more than half the money yet pays two-thirds of the federal taxes.  And once you hit $200,000 in adjusted gross income, your tax rate nearly doubles - going from an average of 11.9 percent to 19.6 percent.

Occupy DC Infiltrated, Calls for Violent Revolution

Occupy Wall Street - what’s that?  They’ve gone away, right? They haven’t.  They’re regrouping and preparing to ramp up.  Nick Tomboulides, Andrew McCaughey, and Danielle Saul recorded some remarks made by Mike Golash, former President Amalgamated Transit Union, Local 689, and others at a OccupyDC meeting held August 19, 2012.

They are not hiding their goals anymore - and no matter what your stance on the current state of our government, what is being said here should shock all patriots.

GOLASH: Progressive labor is a revolutionary Communist organization.  Its objective is to make revolution in the United States, overthrow the capitalist system, and build communism.  We’re trying to learn something from the historical revolutions of the past, the Russian revolution, the Chinese revolution, the revolutions in Cuba and Eastern Europe.

What can we learn from them so we can build a more successful movement to transform capitalist society?

The “historical revolutions of the past” don’t include the American Revolution - a revolution which created true freedom and prosperity and has been a model for such - but includes revolutions in which dictators were created who brutally tortured and slaughtered millions of their own people?

International Data on Living Standards Show that the United States Should Not Become More Like Europe

Written by Daniel J. Mitchell, a senior fellow at the Cato Institute. Posted with permission from Cato @ Liberty.

I’m not a big fan on international bureaucracies, particularly the Paris-based Organization for Economic Cooperation and Development. The OECD, funded by American tax dollars, has become infamous for its support of statist pro-Obama policies.

Obama: You didn’t build your business


President Obama has been accused of conducting class warfare.  His supporters, obviously, disagree.  They see Obama merely as fighting for the rights of the lower and middle classes against the all-powerful wealthy.  However, this latest quote from the president takes a shot that may just go astray:

If you’ve got a business — you didn’t build that.  Somebody else made that happen.

Yes.  He really said that.

However, let’s look at the whole context:

If you were successful, somebody along the line gave you some help.  There was a great teacher somewhere in your life.  Somebody helped to create this unbelievable American system that we have that allowed you to thrive.  Somebody invested in roads and bridges.  If you’ve got a business — you didn’t build that.  Somebody else made that happen.  The Internet didn’t get invented on its own.  Government research created the Internet so that all the companies could make money off the Internet.

The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together.

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