Tuesday, July 7, 2009

Why Palin Quit: Death by a Thousand FOIAs

People close to Sarah Palin say national political reporters and pundits have missed the real reasons for her surprising decision to resign as Alaska governor. The national media have dismissed or downplayed her real motives, which had little to do with any plans to run for president in 2012.

Contrary to most reports, her decision had been in the works for months, accelerating recently as it became clear that controversies and endless ethics investigations were threatening to overshadow her legislative agenda. "Attacks inside Alaska and largely invisible to the national media had paralyzed her administration," someone close to the governor told me. "She was fully aware she would be branded a 'quitter.' She did not want to disappoint her constituents, but she was no longer able to do the job she had been elected to do. Essentially, the taxpayers were paying for Sarah to go to work every day and defend herself."

This situation developed because Alaska's transparency laws allow anyone to file Freedom of Information Act requests. While normally useful, in the hands of political opponents FOIA requests can become a means to bog down a target in a bureaucratic quagmire, thanks to the need to comb through records and respond by a strict timetable. Similarly, ethics investigations are easily triggered and can drag on for months even if the initial complaint is flimsy. Since Ms. Palin returned to Alaska after the 2008 campaign, some 150 FOIA requests have been filed and her office has been targeted for investigation by everyone from the FBI to the Alaska legislature. Most have centered on Ms. Palin's use of government resources, and to date have turned up little save for a few state trips that she agreed to reimburse the state for because her children had accompanied her. In the process, though, she accumulated $500,000 in legal fees in just the last nine months, and knew the bill would grow ever larger in the future.

"The Alaska ethics elves had painted such a target on Sarah's forehead that she had begun turning down pretty much every invitation she got -- even though they were pouring in every day by the dozens," a confidant of the governor's told me. "It is not throwing in the towel. It is deciding that she was ineffective in fighting for her principles and could do more in another role."
Family considerations also played a role. Ms. Palin gave birth to a baby with Down's Syndrome in 2008, and also has a six-year old. Everyone in the family was weary of endless personal attacks, including mean-spirited suggestions on liberal blogs that all of her children should have been aborted and that she would run on a presidential platform promoting retardation.

Governor Palin tried hunkering down. She ignored offers of help from outside and kept media outlets at a distance. "Palin had become so suspicious of the media that she rejected hundreds of requests by even friendly reporters to interview her. Her press aides say that before considering interviews, she insists that they comb through reporters' work, even if they write for a friendly, conservative publication," writes Ron Kessler of NewsMax.com. I can also attest to the difficulty of reaching Governor Palin's staff and getting simple requests answered -- the problem is that such standoffishness can sometimes result in more negative coverage rather than less.

Karl Rove acknowledges the unusual battering Ms. Palin has endured in recent months, but told Fox News that GOP leaders are still puzzled by her decision. "If she wanted to escape the ethics investigations and save the taxpayers money, she's now done that," he said. Unfortunately, he added, her decision "sent a signal that if you do this kind of thing to a sitting governor like her, you can drive her out of office."

But Palin friends say such commentary misses the real point. "The Beltway media can't understand someone not consumed with presidential ambition," one told me. "Maybe Sarah Palin won't run for president and maybe her family situation made it tougher to handle the barrage of attacks that come with that territory. The real issue that should be asked is why a mean-spirited system has to treat people who run like that, instead of why someone may choose not to go through it."

All good points, and they lead me to conclude that Ms. Palin mostly likely will not run for president -- in 2012, at least. She made many mistakes after suddenly being thrust into the national spotlight last year, but hasn't merited the sneering contempt visited upon her by national reporters. She simply was not their kind of feminist -- and they disdained the politically incorrect life choices she had made.

In helping to convince Sarah Palin that her road forward in national politics would demand even more sacrifices and pain than exacted from most politicians, the media did nothing to encourage women or people of modest means to participate in politics. By sidestepping her critics, Sarah Palin is now moving to another playing field where she has more control over the rules of the game. Her friends say her critics may call her a "quitter" now, but they should wait and see what new role she decides to fill. She may wind up having the last laugh.
-- John Fund

The Cap and Tax Fiction

Democrats off-loading economics to pass climate change bill.

House Speaker Nancy Pelosi has put cap-and-trade legislation on a forced march through the House, and the bill may get a full vote as early as Friday. It looks as if the Democrats will have to destroy the discipline of economics to get it done.

Despite House Energy and Commerce Chairman Henry Waxman's many payoffs to Members, rural and Blue Dog Democrats remain wary of voting for a bill that will impose crushing costs on their home-district businesses and consumers. The leadership's solution to this problem is to simply claim the bill defies the laws of economics.

Their gambit got a boost this week, when the Congressional Budget Office did an analysis of what has come to be known as the Waxman-Markey bill. According to the CBO, the climate legislation would cost the average household only $175 a year by 2020. Edward Markey, Mr. Waxman's co-author, instantly set to crowing that the cost of upending the entire energy economy would be no more than a postage stamp a day for the average household. Amazing. A closer look at the CBO analysis finds that it contains so many caveats as to render it useless.

For starters, the CBO estimate is a one-year snapshot of taxes that will extend to infinity. Under a cap-and-trade system, government sets a cap on the total amount of carbon that can be emitted nationally; companies then buy or sell permits to emit CO2. The cap gets cranked down over time to reduce total carbon emissions.

To get support for his bill, Mr. Waxman was forced to water down the cap in early years to please rural Democrats, and then severely ratchet it up in later years to please liberal Democrats. The CBO's analysis looks solely at the year 2020, before most of the tough restrictions kick in. As the cap is tightened and companies are stripped of initial opportunities to "offset" their emissions, the price of permits will skyrocket beyond the CBO estimate of $28 per ton of carbon. The corporate costs of buying these expensive permits will be passed to consumers.

The biggest doozy in the CBO analysis was its extraordinary decision to look only at the day-to-day costs of operating a trading program, rather than the wider consequences energy restriction would have on the economy. The CBO acknowledges this in a footnote: "The resource cost does not indicate the potential decrease in gross domestic product (GDP) that could result from the cap."

The hit to GDP is the real threat in this bill. The whole point of cap and trade is to hike the price of electricity and gas so that Americans will use less. These higher prices will show up not just in electricity bills or at the gas station but in every manufactured good, from food to cars. Consumers will cut back on spending, which in turn will cut back on production, which results in fewer jobs created or higher unemployment. Some companies will instead move their operations overseas, with the same result.

When the Heritage Foundation did its analysis of Waxman-Markey, it broadly compared the economy with and without the carbon tax. Under this more comprehensive scenario, it found Waxman-Markey would cost the economy $161 billion in 2020, which is $1,870 for a family of four. As the bill's restrictions kick in, that number rises to $6,800 for a family of four by 2035.
Note also that the CBO analysis is an average for the country as a whole. It doesn't take into account the fact that certain regions and populations will be more severely hit than others -- manufacturing states more than service states; coal producing states more than states that rely on hydro or natural gas. Low-income Americans, who devote more of their disposable income to energy, have more to lose than high-income families.

Even as Democrats have promised that this cap-and-trade legislation won't pinch wallets, behind the scenes they've acknowledged the energy price tsunami that is coming. During the brief few days in which the bill was debated in the House Energy Committee, Republicans offered three amendments: one to suspend the program if gas hit $5 a gallon; one to suspend the program if electricity prices rose 10% over 2009; and one to suspend the program if unemployment rates hit 15%. Democrats defeated all of them.

The reality is that cost estimates for climate legislation are as unreliable as the models predicting climate change. What comes out of the computer is a function of what politicians type in. A better indicator might be what other countries are already experiencing. Britain's Taxpayer Alliance estimates the average family there is paying nearly $1,300 a year in green taxes for carbon-cutting programs in effect only a few years.

Americans should know that those Members who vote for this climate bill are voting for what is likely to be the biggest tax in American history. Even Democrats can't repeal that reality.

Pope calls for a "global authority" on economy

By Philip Pullella

VATICAN CITY (Reuters) - Pope Benedict called on Tuesday for a "world political authority" to manage the global economy and for more government regulation of national economies to pull the world out of the current crisis and avoid a repeat.

The pope made his call for a re-think of the way the world economy was run in a new encyclical which touched on a number of social issues but whose main connecting thread was how the current crisis has affected both rich and poor nations.

Parts of the encyclical, titled "Charity in Truth," seemed bound to upset free marketers because of its underlying rejection of unbridled capitalism and unregulated market forces, which he said had led to "thoroughly destructive" abuse of the system and "grave deviations and failures."
An encyclical is the highest form of papal writing and gives the clearest indication to the world's 1.1 billion Catholics -- and to non-Catholics -- of what the pope and the Vatican think about specific social and moral issues.

The pope said every economic decision had a moral consequence and called for "forms of redistribution" of wealth overseen by governments to help those most affected by crises.
Benedict said "there is an urgent need of a true world political authority" whose task would be "to manage the global economy; to revive economies hit by the crisis; to avoid any deterioration of the present crisis and the greater imbalances that would result."

Such an authority would have to be "regulated by law" and "would need to be universally recognized and to be vested with the effective power to ensure security for all, regard for justice, and respect for rights."

"Obviously it would have to have the authority to ensure compliance with its decisions from all parties, and also with the coordinated measures adopted in various international forums," he said.

The United Nations, economic institutions and international finance all had to be reformed "even in the midst of a global recession," he said in the encyclical, a booklet of 141 pages.
The pope's call for a supranational body to tackle global economic woes disturbed some Catholic capitalists.

"There is a difference between coordination and mandate ... a reckless loan in the United States can and did impoverish people in Latvia. So obviously coordination is important as long as it is not mandates," said Frank Keating, CEO of the American Council of Life Insurers and former Governor of Oklahoma.

LOFTY MESSAGE
The encyclical was addressed to all Catholics and "all people of good will" and was released on the eve of the start of the G8 summit in Italy and three days before the pope is due to discuss the global downturn with U.S. President Barack Obama.

In several sections of the encyclical, Benedict made it clear he had great reservations about a totally free market.

"The conviction that the economy must be autonomous, that it must be shielded from 'influences' of a moral character, has led man to abuse the economic process in a thoroughly destructive way," he said.

"In the long term, these convictions have led to economic, social and political systems that trample upon personal and social freedom and are therefore unable to deliver the justice that they promise," he added.

Profit was useful only if it served as a means to a brighter future for all humanity.
"Once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty," he said.
He said the current economic crisis was "clear proof" of "pernicious effects of sin" in the economy.

"Financiers must rediscover the genuinely ethical foundation of their activity ...," he said.
German Chancellor Angela Merkel, who had rebuked the pope earlier this year at the height of the row over a Holocaust-denying bishop, welcomed the encyclical as important encouragement for world leaders ahead of a G8 meeting in Italy.

"Pope Benedict has encouraged the state leaders to create rules so that this sort of worldwide economic crisis isn't repeated," Merkel told reporters. "I also saw this as an order to work toward a social market economy in the world."

The pope appeared to back government intervention "in correcting errors and malfunctions" in the economy, saying "one could foresee an increase in the new forms of political participation, nationally and internationally."

(Additional reporting by Daniel Bases in New York and Sabine Siebold in Berlin; Editing by Matthew Jones)

Pope Benedict on Economic Justice

THIS CATHOLIC'S VIEW
By Thomas J. Reese, S.J.

Pope Benedict's long awaited encyclical calls for a radical rethinking of economics so that it is guided not simply by profits but by "an ethics which is people-centered."

"Profit is useful if it serves as a means towards an end," he writes in Caritas in veritate (Charity in Truth), but "once profit becomes the exclusive goal, if it is produced by improper means and without the common good as its ultimate end, it risks destroying wealth and creating poverty."
He decries that "Corruption and illegality are unfortunately evident in the conduct of the economic and political class in rich countries...as well as in poor ones." He also says that "Financiers must rediscover the genuinely ethical foundation of their activity, so as not to abuse the sophisticated instruments which can serve to betray the interests of savers."

Benedict, like Paul VI, whose encyclical Populorum Progressio (Development of Peoples) he is commemorating, is concerned about the "The scandal of glaring inequalities." Both Benedict and Paul hoped that economic development would "produce real growth, of benefit to everyone and genuinely sustainable." Benedict disappointedly acknowledges that "The world's wealth is growing in absolute terms, but inequalities are on the increase"

"The dignity of the individual and the demands of justice require," he affirms, "that economic choices do not cause disparities in wealth to increase in an excessive and morally unacceptable manner, and that we continue to prioritize the goal of access to steady employment for everyone."

In his encyclical, Benedict calls for charity guided by truth. "Charity demands justice: recognition and respect for the legitimate rights of individuals and peoples," he says. "Justice must be applied to every phase of economic activity, because this is always concerned with man and his needs," he writes. "Locating resources, financing, production, consumption and all the other phases in the economic cycle inevitably have moral implications. Thus every economic decision has a moral consequence."

The encyclical notes the globalization that has taken place since Paul's encyclical was issued over 40 years ago. Alas, "as society becomes ever more globalized, it makes us neighbors but does not make us brothers." True "development of peoples depends, above all, on a recognition that the human race is a single family working together in true communion, not simply a group of subjects who happen to live side by side." The goal of such development is "rescuing peoples, first and foremost, from hunger, deprivation, endemic diseases and illiteracy."

Sounding like a union organizer, Benedict argues that "Lowering the level of protection accorded to the rights of workers, or abandoning mechanisms of wealth redistribution in order to increase the country's international competitiveness, hinder the achievement of lasting development."
Rather the goal should be decent employment for everyone, which "means work that expresses the essential dignity of every man and woman in the context of their particular society: work that is freely chosen, effectively associating workers, both men and women, with the development of their community; work that enables the worker to be respected and free from any form of discrimination; work that makes it possible for families to meet their needs and provide schooling for their children, without the children themselves being forced into labor; work that permits the workers to organize themselves freely, and to make their voices heard; work that leaves enough room for rediscovering one's roots at a personal, familial and spiritual level; work that guarantees those who have retired a decent standard of living."

The pope disagrees with those who believe that the economy should be free of government regulation. "The conviction that the economy must be autonomous, that it must be shielded from 'influences' of a moral character, has led man to abuse the economic process in a thoroughly destructive way," he writes. "In the long term, these convictions have led to economic, social and political systems that trample upon personal and social freedom, and are therefore unable to deliver the justice that they promise."

Benedict even supports "a political, juridical and economic order which can increase and give direction to international cooperation for the development of all peoples in solidarity. To manage the global economy; to revive economies hit by the crisis; to avoid any deterioration of the present crisis and the greater imbalances that would result; to bring about integral and timely disarmament, food security and peace; to guarantee the protection of the environment and to regulate migration: for all this, there is urgent need of a true world political authority, as my predecessor Blessed John XXIII indicated some years ago."

While Benedict acknowledges the role of the market, he emphasizes that "the social doctrine of the Church has unceasingly highlighted the importance of distributive justice and social justice for the market economy." He unflinchingly supports the "redistribution of wealth" when he talks about the role of government. "Grave imbalances are produced," he writes, "when economic action, conceived merely as an engine for wealth creation, is detached from political action, conceived as a means for pursuing justice through redistribution."

Although Benedict's emphasis in the encyclical is on the theological foundations of Catholic social teaching, amid the dense prose there are indications, as shown above, that he is to the left of almost every politician in America. What politician would casually refer to "redistribution of wealth" or talk of international governing bodies to regulate the economy? Who would call for increasing the percentage of GDP devoted to foreign aid? Who would call for the adoption of "new life-styles 'in which the quest for truth, beauty, goodness and communion with others for the sake of common growth are the factors which determine consumer choices, savings and investments'"?

Benedict believes that if people understood God's love for every single human person and his divine plan for us, then believers would recognize their duty "to unite their efforts with those of all men and women of good will, with the followers of other religions and with non-believers, so that this world of ours may effectively correspond to the divine plan: living as a family under the Creator's watchful eye."
Thomas J. Reese, S.J., is Senior Fellow at Woodstock Theological Center at Georgetown University.