18 July, 2012

Who else, Mr. President?

Who else, Mr. President?

Author: John Kass

When President Barack Obama hauled off and slapped American small-business owners in the mouth the other day, I wanted to dream of my father.

But I didn't have to close my eyes to see my dad. I could do it with my eyes open.

All I had to do was think of the driveway of our home, and my dad's car gone before dawn, that old white Chrysler with a push-button transmission. It always started, but there was a hole in the floor and his feet got wet in the rain. So he patched it with concrete mix and kept on driving it to the little supermarket he ran with my Uncle George.

He'd return home long after dark, physically and mentally exhausted, take a plate of food, talk with us for a few minutes, then flop in that big chair in front of the TV. Even before his cigarette was out, he'd begin to snore.

The next day he'd wake up and do it again. Day after day, decade after decade. Weekdays and weekends, no vacations, no time to see our games, no money for extras, not even forMcDonald's. My dad and Uncle George, and my mom and my late Aunt Mary, killing themselves in their small supermarket on the South Side of Chicago.

There was no federal bailout money for us. No Republican corporate welfare. No Democratic handouts. No bipartisan lobbyists working the angles. No Tony Rezkos. No offshore accounts. No Obama bucks.

Just two immigrant brothers and their families risking everything, balancing on the economic high wire, building a business in America. They sacrificed, paid their bills, counted pennies to pay rent and purchase health care and food and not much else. And for their troubles they were muscled by the politicos, by the city inspectors and the chiselers and the weasels, all those smiling extortionists who held the government hammer over all of our heads.

I thought about this after I heard what Obama told a campaign crowd the other day, speaking about business owners and why they were successful.

"You didn't get there on your own," Obama said. "I'm always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there. It must be because I worked harder than everybody else. Let me tell you something — there are a whole bunch of hardworking people out there.

"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."

If you've got a business, you didn't build that? Somebody else made that happen?

Somebody else, Mr. President? Who, exactly? Government?

One of my earliest memories as a boy at the store was that of the government men coming from City Hall. One was tall and beefy. The other was wiry. They wanted steaks.

We didn't eat red steaks at home or yellow bananas. We took home the brown bananas and the brown steaks because we couldn't sell them. But the government men liked the big, red steaks, the fat rib-eyes two to a shrink-wrapped package. You could put 20 or so in a shopping bag.

"Thanks, Greek," they'd say.

That was government.

We didn't go to movies or out to restaurants. Everything went into the business. Uncle George and dad never bought what they could not afford. The store employed people, and the workers fed their families and educated their children and put them through college. They were good people, all of them. We worked together and worked hard, but none worked harder than the bosses.

It's the same story with so many other businesses in America, immigrants and native-born. The entrepreneurs risk everything, their homes, their children's college funds, their hearts, all for a chance at the dream: independence, and a small business of their own.

Most often, they fail and fall to the ground without a government parachute. But some get up and start again.

When I was grown and gone from home, my parents finally managed to save a little money. After all those years of hard work and denying themselves things, they had enough to buy a place in Florida and a fishing boat in retirement. Dad died only a few years later. You wouldn't call them rich. But Obama might.

Obama's changed. Gone is that young knight drawing the sword from the stone, selling Hopium to the adoring media, preaching an end to the broken politics of the past. These days, he wears a new presidential persona: the multimillionaire with the Chicago clout, playing the class warrior, fighting for that second term.

And he offers an American dream much different from my father's. Open your eyes and you can see it too. He stands there at the front of the mob, in his shirt sleeves, swinging that government hammer, exhorting the crowd to use its votes and take what it wants.

jskass@tribune.com
Twitter @John_Kass

11 July, 2012

Budget Insanity

Budget Insanity

By John Stossel - July 11, 2012

Last year, Congress agreed to $1.2 trillion in automatic spending cuts, unless politicians find other things to cut. They didn't, of course. So now, with so-called sequestration looming in January, panic has set in. Even the new "fiscally responsible" Republicans vote against cutting Energy Department handouts to companies like Solyndra and subsidies to sugar producers. Many claim that any cut in military spending will weaken America and increase unemployment.

It's another demonstration of the politicians' addiction to spending -- and how we are complicit. "One more infrastructure bill" or "this jobs plan" will jumpstart the economy, and then we'll kick our spending addiction once and for all.

But we don't stop.

For most of American history, government was tiny. But since Lyndon Johnson's Great Society and the promise that government would cure poverty, spending has gone up nonstop. This is not sustainable.

Progressives say: If you're so worried about the deficit, raise taxes! But it's a fantasy to imagine that taxing the rich will solve our deficit problem. If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion. That's only a third of this year's deficit.

It's the spending, stupid.

Even if you could balance the budget by taxing the rich, it wouldn't be right. Progressives say it's wrong for the rich to be "given" more money. But money earned belongs to those who earn it, not to government. Lower taxes are not a handout.

That's the moral side of the matter. There's a practical side, too. Taxes discourage wealth creation.

Even if you think -- despite all evidence -- that government spends money more usefully than people in the private sector, there is a limit to how much government can tax before people work less or flee.

Progressives claim a small increase in tax rates won't stop the wealthy from producing. But some would stop. When the top marginal rate was 90 percent, actor Ronald Reagan worked just half the year. He said that woke him up to the damage that high taxes impose.

Higher taxes give rich people and politicians more reasons to collude. The rich make contributions, and politicians pay the rich back by giving them tax loopholes.

That's a big loss to America. That money and creative energy spent on figuring out taxes might have gone to build new products, make music, cure cancer or ... who knows what?

Politicians promise to balance the budget by getting rid of what is wasteful, redundant or unnecessary. There's plenty of that, but they have promised to eliminate it for years. They cannot. It's just in the nature of the beast. Centrally planned monopolies do things that are wasteful, redundant and unnecessary.

What will bankrupt us first are the wealth transfers to my generation: Medicare and Social Security

When FDR started Social Security, most people didn't even live to age 65. Today, we average 78 -- and we baby boomers demand all the cool new stuff that modern medicine invents: anti-cholesterol drugs, hip replacements, etc. And we don't want to pay for most of it because we've been trained by government to assume that we're entitled to these things for free, or nearly free. We paid into Social Security and Medicare for our entire working lives, and damn it, we're entitled to get our money back!

Few of us realize that most of us get back up to three times what we paid in, that politicians have promised Social Security and Medicare recipients an impossible $46 trillion more than will exist and that our sense of entitlement will ruin America much faster than foreign aid, subsidies for NPR or foreign wars ever will.

Amazingly, we could grow our way out of debt if Congress simply froze spending at today's levels. That would balance the budget by 2017. If spending growth were limited to just 2 percent per year, the budget would balance by 2020!

But the politicians won't do even that.

It's depressing writing this. But it's not hopeless. There are examples of fiscal sanity we can follow -- if we have the will.