28 May, 2009

Who does Sotomayor empathize with? Who cares!

This idea of judicial "empathy" is driving me nuts.  We are trying to find a US Supreme Court Justice, not a personal life coach.  These are the folks who are supposed to interpret the law, not twist the law to accommodate those who are worthy of empathy.  As John Roberts said,  "Somebody asked me, you know, 'Are you going to be on the side of the little guy?' And you obviously want to give an immediate answer. But as you reflect on it, if the Constitution says that the little guy should win, the little guy is going to win in court before me. But if the Constitution says that the big guy should win, well, then the big guy is going to win, because my obligation is to the Constitution. That's the oath. The oath that a judge takes is not that 'I'll look out for particular interests.' . . . The oath is to uphold the Constitution and laws of the United States, and that's what I would do."

Exactly.

Commentary: Who does Sotomayor empathize with?

By Leslie Sanchez




WASHINGTON (CNN) -- The Obama administration has no intention of pushing comprehensive immigration reform any time soon, but with his nomination of Judge Sonia Sotomayor to the Supreme Court, the president may have found a suitable consolation prize for the Hispanic community.

A prize is due. Hispanics gave 67 percent of their votes to President Obama, delivering key states like Colorado, Nevada and New Mexico to his electoral column, and sending him two new Democratic senators and three new House Democrats from those states alone.

But the problem with identity politics is that not just any Hispanic will do. Obama made clear he wanted to pick a justice who would have empathy for those whose cases come before the court.

As impressive as Sotomayor's life story is, it remains to be seen whether she truly has the much-talked-about "empathy" for Hispanic values and dreams.

If Sotomayor is truly representative of our values, she will understand that the entrepreneurial spirit is alive and well in the Hispanic community and is our best hope for moving Hispanic households solidly into the ranks of the American middle class.

In a study earlier this year, HispanTelligence, the research arm of Hispanic Business magazine, confirmed that there are at least 2.2 million Hispanic-owned businesses in the U.S., generating about $388 billion in combined revenue.

Empathy with the lives of millions of Hispanics today means that she must appreciate the impact of federal, state and municipal tax and regulatory schemes on individuals and small businesses alike. Her writings should reflect the view that access to the marketplace is a constitutional guarantee no less important than freedoms of speech, religion or assembly.

If she understands the hopes and aspirations of the Hispanic community, she should have a record of interpreting the Commerce Clause of the Constitution in ways that encourage individual risk-taking, free enterprise and job creation, not in ways that discourage it.

Likewise, Sotomayor should show evidence of being suspicious of government's power. Many Hispanics are fresh from regimes where the rule of law has been crushed or never existed; we know that with centralized power comes arrogance, and that bureaucracies inevitably become cold, callous, unyielding and corrupt.

She should be imbued with a core appreciation that our Constitution establishes a government of limited, enumerated powers, and should have a record of writings and decisions that support the conclusion that she will err on the side of limiting, not expanding, the powers and influence of government.

Like all other immigrants, Hispanics came here with the hope of acquiring property for themselves and their children. We treasure as sacred our own homes, farms and land, and we know there is often little practical difference between broad government restrictions on the use and enjoyment of that property and its being taken outright.

As a Supreme Court justice, Sotomayor should believe, as we Hispanics do, that the Constitution affords us due process and just compensation in either case -- and that no property should be taken unless there is a legitimate public use.

As everyone knows, at the core of the Hispanic experience are our families and the opportunity to freely exercise our religion. The next justice, if she is empathetic to our lives and values, will protect the sanctity of the family and of life itself.

Obama's nomination of the first Latina to the Supreme Court is a historic moment that has moved each of us, but our pride will be fleeting if she doesn't really share Hispanic values.

The opinions expressed in this commentary are solely those of Leslie Sanchez. 

07 May, 2009

"Empathy" vs. the Law

"Empathy" Versus Law
Thomas Sowell
Tuesday, May 05, 2009

Justice David Souter's retirement from the Supreme Court presents President Barack Obama with his first opportunity to appoint someone to the High Court. People who are speculating about whether the next nominee will be a woman, a Hispanic or whatever, are missing the point.

That we are discussing the next Supreme Court justice in terms of group "representation" is a sign of how far we have already strayed from the purpose of law and the weighty responsibility of appointing someone to sit for life on the highest court in the land.

That President Obama has made "empathy" with certain groups one of his criteria for choosing a Supreme Court nominee is a dangerous sign of how much further the Supreme Court may be pushed away from the rule of law and toward even more arbitrary judicial edicts to advance the agenda of the left and set it in legal concrete, immune from the democratic process.

Would you want to go into court to appear before a judge with "empathy" for groups A, B and C, if you were a member of groups X, Y or Z? Nothing could be further from the rule of law. That would be bad news, even in a traffic court, much less in a court that has the last word on your rights under the Constitution of the United States.

Appoint enough Supreme Court justices with "empathy" for particular groups and you would have, for all practical purposes, repealed the 14th Amendment, which guarantees "equal protection of the laws" for all Americans.

We would have entered a strange new world, where everybody is equal but some are more equal than others. The very idea of the rule of law would become meaningless when it is replaced by the empathies of judges.

Barack Obama solves this contradiction, as he solves so many other problems, with rhetoric. If you believe in the rule of law, he will say the words "rule of law." And if you are willing to buy it, he will keep on selling it.

Those people who just accept soothing words from politicians they like are gambling with the future of a nation. If you were German, would you be in favor of a law "to relieve the distress of the German people and nation"? That was the law that gave Hitler dictatorial power.

He was just another German chancellor at the time. He was not elected on a platform of war, dictatorship or genocide. He got the power to do those things because of a law "to relieve the distress of the German people."

When you buy words, you had better know what you are buying.

In the American system of government, presidential term limits restrict how long any given resident of the White House can damage this country directly. But that does not limit how long, or how much, the people he appoints to the Supreme Court can continue to damage this country, for decades after the president who appointed them is long gone.

Justice John Paul Stevens virtually destroyed the Constitution's restrictions on government officials' ability to confiscate private property in his 2005 decision in the case of "Kelo v. New London"-- 30 years after President Ford appointed him.

The biggest danger in appointing the wrong people to the Supreme Court is not just in how they might vote on some particular issues-- whether private property, abortion or whatever. The biggest danger is that they will undermine or destroy the very concept of the rule of law-- what has been called "a government of laws and not of men."

Under the American system of government, this cannot be done overnight or perhaps even during the terms in office of one president-- but it can be done. And it can be done over time by the appointees of just one president, if he gets enough appointees.

Some people say that who Barack Obama appoints to replace Justice Souter doesn't really matter, because Souter is a liberal who will probably be replaced by another liberal. But, if no one sounds the alarm now, we can end up with a series of appointees with "empathy"-- which is to say, with justices who think their job is to "relieve the distress" of particular groups, rather than to uphold the Constitution of the United States.

Part II

The great Supreme Court justice Oliver Wendell Holmes is not the kind of justice who would have been appointed under President Barack Obama's criterion of "empathy" for certain groups.

Like most people, Justice Holmes had empathy for some and antipathy for others, but his votes on the Supreme Court often went against those for whom he had empathy and for those for whom he had antipathy. As Holmes himself put it: "I loathed most of the things in favor of which I decided."

After voting in favor of Benjamin Gitlow in the 1925 case of Gitlow v. People of New York, Holmes said in a letter to a friend that he had just voted for "the right of an ass to drool about proletarian dictatorship." Similarly, in the case of Abrams v. United States, Holmes' dissenting opinion in favor of the appellants characterized the views of those appellants as "a creed which I believe to be the creed of ignorance and immaturity."

By the same token, Justice Holmes did not let his sympathies with some people determine his votes on the High Court. As a young man, Holmes had dropped out of Harvard to go fight in the Civil War because he opposed slavery. In later years, he expressed his dislike of the minstrel shows that were popular at the time "because they seem to belittle the race."

When there were outcries against the prosecution of Sacco and Vanzetti in the 1920s, Holmes said in a letter, "I cannot but ask myself why this so much greater interest in red than black. A thousand-fold worse cases of negroes come up from time to time, but the world does not worry over them."

Yet when two black attorneys appeared before the Supreme Court, Holmes wrote in another letter to a friend that he had to "write a decision against a very thorough and really well expressed argument by two colored men"-- an argument "that even in intonation was better than, I should say, the majority of white discourses that we hear."

Holmes understood that a Supreme Court justice was not there to favor some people or even to prescribe what was best for society. He had a very clear sense of what the role of a judge was-- and wasn't.

Justice Holmes saw his job to be "to see that the game is played according to the rules whether I like them or not."

That was because the law existed for the citizens, not for lawyers or judges, and the citizen had to know what the rules were, in order to obey them.

He said: "Men should know the rules by which the game is played. Doubt as to the value of some of those rules is no sufficient reason why they should not be followed by the courts."

Legislators existed to change the law.

After a lunch with Judge Learned Hand, as Holmes was departing in a carriage to return to work, Judge Hand said to him: "Do justice, sir. Do justice."

Holmes had the carriage stopped. "That is not my job," he said. "My job is to apply the law."

Holmes wrote that he did not "think it desirable that the judges should undertake to renovate the law." If the law needed changing, that was what the democratic process was for. Indeed, that was what the separation of powers in legislative, executive and judicial branches by the Constitution of the United States was for.

"The criterion of constitutionality," he said, "is not whether we believe the law to be for the public good." That was for other people to decide. For judges, he said: "When we know what the source of the law has said it shall be, our authority is at an end."

One of Holmes' judicial opinions ended: "I am not at liberty to consider the justice of the Act."

Some have tried to depict Justice Holmes as someone who saw no need for morality in the law. On the contrary, he said: "The law is the witness and external deposit of our moral life." But a society's need to put moral content into its laws did not mean that it was the judge's job to second-guess the moral choices made by others who were authorized to make such choices.

Justice Holmes understood the difference between the rule of law and the rule of lawyers and judges.

Part III

There is a reason why the statue of Justice wears a blindfold. There are things that courts are not supposed to see or recognize when making their decisions-- the race you belong to, whether you are rich or poor, and other personal things that could bias decisions by judges and juries.

It is an ideal that a society strives for, even if particular judges or juries fall short of that ideal. Now, however, President Barack Obama has repudiated that ideal itself by saying that he wants to appoint judges with "empathy" for particular groups.

This was not an isolated slip of the tongue. Barack Obama said the same thing during last year's election campaign. Moreover, it is completely consistent with his behavior and associations over a period of years-- and inconsistent with fundamental principles of American government and society.

Nor is this President Obama's only attempt to remake American society. Barack Obama's vision of America is one in which a President of the United States can fire the head of General Motors, tell banks how to bank, control the medical system and take charge of all sorts of other activities for which neither he nor other politicians have any expertise or experience.

The Constitution of the United States gives no president, nor the entire federal government, the authority to do such things. But spending trillions of dollars to bail out all sorts of companies buys the power to tell them how to operate.

Appointing judges to the federal courts-- including the Supreme Court-- who believe in expanding the powers of the federal government to make arbitrary decisions, choosing who will be winners and losers in the economy and in the society, is perfectly consistent with a vision of the world where self-confident and self-righteous elites rule according to their own notions, instead of merely governing under the restraints of the Constitution.

If all this can be washed down with pious talk about "empathy," so much the better for those who want to remake America. Now that the Obama administration has a Congressional majority that is virtually unstoppable, and a media that is wholly uncritical, the chances of preventing the president from putting someone on the Supreme Court who shares his desire to turn America into a different country are slim or none.

The only thing on the side of those who understand this, and who oppose it, is time. Reshaping the Supreme Court cannot be done overnight, the way Congress passed a vast spending bill in two days.

Replacing Supreme Court justices is something that can only be done one at a time and at unpredictable intervals. What this means is that Senators who do not have enough votes to stop an Obama nominee for the High Court from being confirmed nevertheless have an opportunity- and a duty-- to alert the public to the dangers of what is being done.

This does not mean turning confirmation hearings into a circus or a kangaroo court with mud-slinging at judicial nominees, the way Robert Bork and Clarence Thomas were smeared. But it also does not mean taking the path of least resistance by quietly voting for people like Ruth Bader Ginsberg and Stephen Breyer, who treat the Constitution as a grant of arbitrary power to themselves, rather than a restriction of power on the government as a whole.

It is all too easy to say "a president has a right to appoint the kind of people he wants on the Supreme Court." He does. But that does not mean that those who don't have the votes to stop dangerous nominees from being confirmed are obliged to vote for them or to stand mute.

Since Justice David Souter is likely to be replaced by another liberal, it is all too easy to say that it is no big deal. But with all the indications already as to how the Obama administration is trying to remake America on many fronts, the time to begin alerting the public to the dangers is now.

Given the age and health of other Supreme Court justices, more replacements are likely during Obama's time in the White House. Time is an opportunity to mobilize public opinion and perhaps change the composition of the Senate that confirms judicial nominees.

But time by itself does nothing. It is what we do with time that matters.


The International Community

The What Of Nations?

A pandering Obama praised Europe's 'leading role in the world.' Actually, Europe exercises almost no leadership, even in Europe.

George F. Will
NEWSWEEK
From the magazine issue dated Apr 20, 2009

"He's a man way out there in the blue, riding on a smile and a shoeshine. And when they start not smiling back—that's an earthquake." 
—Arthur Miller, "Death of a Salesman"

President William Howard Taft understood how political cant can bewitch the speaker's mind. Listening to an aide natter on about "the machinery of government," Taft murmured, "The young man really thinks it's a machine." The current president's U.N. ambassador, Susan Rice, was on Sunday television recently explaining why she thinks Iran, now several decades into its pursuit of nuclear weapons and close to consummation, might succumb to the siren song of sweet reason and retreat from success. Doing so, she said, would enable Iran "to be a responsible member of the international community"—perhaps not the highest priority for a regime that denies the Holocaust happened, and vows to complete it—and "enter the community of nations." Otherwise Iran will face "the full force of the international community."

Rice really thinks there is a community out there. To believe that is to believe, as liberals do, that harmony is humanity's natural condition, so discord is a remediable defect in arrangements.

Regarding North Korea's missile launch, Rice was very stern. She said the U.N. Security Council would "meet," and there would be "consultation with our partners," who "all need to come together" and "add to" the 2006 U.N. resolution that North Korea had just disregarded, the one that demanded a halt to future missile-related activity, including launches. The Security Council met. It could not even bring itself to say North Korea's launch had violated the resolution against launches.

In the 1950s, conservatives vowed to "roll back" the Iron Curtain. Rice spoke of "ensuring that we roll back" North Korea's nuclear program. She took heart from what she called "some serious dismantlement" of North Korea's principal reactor. Actually, the reactor was not dismantled but disabled, an easily reversible act. Fuel rods were removed and the cooling tower was destroyed. The rods can be reinserted. The reactor can operate without the cooling tower—warm water would be released, which might kill lots of wildlife, but, then, the regime kills lots of North Koreans, even though that supposedly causes frowns to crease the faces of the supposed community of nations.

Perhaps Rice thinks the mere existence of the U.N. proves the existence of an international community. If so, she should spend some communitarian time with our allies the Saudis. The Obama administration has decided to join them as members of the U.N. Human Rights Council, which the Bush administration boycotted because it includes despotic regimes that are ludicrous auditors of other nations' respect for human rights.

An unmarried 23-year-old Saudi woman became pregnant when abducted and gang-raped. She was convicted of adultery and sentenced to a year in prison—and to a perhaps fatal 100 lashes after her child is born. Another woman was visited by two men—one had been breast-fed by her; the other was bringing her bread. Convicted of the crime of being in the presence of men who are not family members, she was sentenced to 40 lashes, which is perhaps a death sentence for a 75-year-old. The "community of nations" that liberals like Rice believe in certainly has what liberals celebrate: diversity.

If there is a "community of nations," then "Yes, we can" do this and that. But if not?

During Barack Obama's trip abroad, during which he praised himself by disparaging his predecessor and deploring America's shortcomings, he took pandering to a comic peak, combining criticism of America with flattery of Europe, when he deplored America's "failure to appreciate Europe's leading role in the world." Actually, as the crisis of aggression and ethnic cleansing in the Balkans demonstrated a decade ago, Europe plays almost no leadership role, even in Europe, which remains a geographical rather than a political denotation.

Europe's collective existence through NATO might be ending. Afghanistan, the supposed "graveyard of empires," might be the burial ground of NATO, which is 60 years old and showing signs of advanced senescence. Officially, NATO says the Afghanistan campaign is vital; actually, it promises a mere 5,000 more troops, none of them for combat. Most of the NATO nations that grudgingly send dribs and drabs of troops to Afghanistan send them enveloped in caveats that virtually vitiate their usefulness, including the stipulation that they shall not be put in harm's way. Tom Korologos, who was U.S. ambassador to Belgium from 2004 to 2007, recalls that when Belgium finally agreed to send a few hundred troops from its unionized "army"—average age: 40—other caveats concerned bottled water, a certain ratio of psychiatrists to troops and a requirement that dust be kept to a minimum.

In Europe, during his first star turn on the world stage, the president learned, or should have, that charm and two euros will almost get him a copy of the International Herald Tribune. Out there in the blue, flying high, selling himself, he found out how far he can go on a smile and a shoeshine.

America's enemies are not smiling back. Those are smirks, not smiles.

30 April, 2009

Credit Card "Bill of Rights"

I agree with most of what John says here.

Credit cards are often the lender of last resort, giving individuals the means to spend money for things they need now while giving them the flexibility to pay later.  In exchange for this temporary loan, banks charge an interest rate on unpaid balances.  These rates are based on historical behavior and the likelihood that the borrower will repay their debt. 

These rates are not randomly assigned; they are reflective of the borrower's credit history.  High rates that are accepted in advance by the borrower are not predatory, they are the fair market value for money loaned to that specific individual.  Politicians who think forcing banks to offer lower rates will help "protect" those who need these funds most are clearly misguided.  Banks won't offer the mandated lower rate.  For those people whose credit histories require a higher rate than the maximum allowed by the new government rule, those people will be denied outright.  The unintended consequence will be fewer credit cards for those who need them most.  These people will be forced to turn to payday loans - a source of funds imposing even higher rates on borrowers.

John and I disagree on the matter of banks changing the interest rate on existing balances.  Allowing banks to do this is like allowing them to readjust fixed rate mortgages after the loan has been agreed to by both parties.  This practice should be abolished.  Banks should be free to change the interest rate on future balances, but existing balances should remain at the previously contracted rate.  

Government Help Hurts

John Stossel
Wednesday, April 29, 2009

"Rate hikes and late fee traps have to end. No more fine print, no more confusing terms and conditions", said President Obama last week when advocating another big-government solution -- this time to evils committed by credit-card companies.

Credit cards are a demagogue's dream come true. What better way to win public affection than to rail against banks for their harsh terms? In the politicians' morality play, creditors are the villains and debtors their helpless victims.

A little context first: No one has a natural right to a credit card. Someone has to be willing to undertake the risk in issuing it. Banks issue cards in their quest for profits. Nothing wrong with that.

Think about what a credit card is. It's convenient access to unsecured loans, permitting consumers to buy things large and small -- not to mention emergency services -- without cash. Pay the bill promptly, and you enjoy a fantastic service for virtually nothing. If circumstances prevent you from paying the bill in full, you can set your own payment schedule, realizing there is a minimum payment and that you will be charged interest on the unpaid balance. No surprise there.

To appreciate credit cards, it is worth recalling that before they came along, people got personal loans from banks, finance companies, pawnshops and loan sharks. Such loans were less convenient, and repayment was less flexible. Some people bought things on layaway, which meant they didn't take the goods home until they were paid for. Loan sharks sometimes broke people's legs.

Credit cards didn't create consumer debt -- they are merely a superior alternative to older methods.

As President Obama and other politicians demagogue this issue, keep two things in mind: Life would be more difficult without credit cards, and banks don't have to keep issuing them. Be careful what you ask for.

Politicians are too short-sighted and vote-hungry to say such things. They want a "credit card holders' bill of rights" that would prohibit certain billing practices, like raising interest rates on existing balances. The House could approve the "bill of rights" this week.

Understandably, these billing practices endear themselves to no one, but competition makes the worst of them far less common. And as for raising rates, revolving credit means that a balance is a fresh loan each month; as the terms state, the rate can change. If issuers can never raise rates on existing balances, even when economic conditions change, they will be likely to charge everyone a higher rate to make up for the risk.

Todd Zywicki, a professor at George Mason University Law School and an expert on consumer credit, points out that the credit-card industry is highly competitive. The web is full of sites that permit easy comparison shopping. Competition has driven banks to more precisely match consumer costs to individual risk. In earlier days, every cardholder paid higher interest rates than today and an annual fee (a way around usury laws). Now, annual fees are largely gone. Rates are lower. Late and over-the-limit fees are unpleasant, but they aren't charged until a cardholder's conduct triggers them. This is not to say credit-card companies never abuse customers, but as Zywicki notes, "[T]here are ample tools for courts and regulators to attack deceptive and fraudulent practices on a case-by-case basis."

Politicians assume we are ignorant about credit-card terms. However, Zywicki points to evidence that people who carry credit-card balances are aware of the interest rate they're paying, and "those who carry larger balances are even more likely to ... comparison shop."

The "bill of rights" seems designed to prevent people from getting themselves in over their heads. That motive is honorable, but government has never been very good at such protection. The law of unintended consequences cannot be repealed, and what government gives with one hand, it inadvertently takes away with the other. Increasing the banks' costs will make it harder for poorer people to get credit cards, and that will only push them into costlier forms of debt, like payday lenders.

I've never understood how the poor are helped by limiting their choices. 

27 April, 2009

Thank you, George Will

The Wreck of the Racial Spoils System
George Will
Sunday, April 26, 2009

WASHINGTON -- Wednesday morning, a lawyer defending in the Supreme Court what the city of New Haven, Conn., did to Frank Ricci and 17 other white firemen (including one Hispanic) was not 20 seconds into his argument when Chief Justice John Roberts interrupted to ask: Would it have been lawful if the city had decided to disregard the results of the exam to select firemen for promotion because it selected too many black and too few white candidates?

In 2003, the city gave promotion exams -- prepared by a firm specializing in employment tests, and approved, as federal law requires, by independent experts -- to 118 candidates, 27 of them black. None of the blacks did well enough to qualify for the 15 immediately available promotions. After a rabble-rousing minister with close ties to the mayor disrupted meetings and warned of dire political consequences if the city promoted persons from the list generated by the exams, the city said: No one will be promoted.

The city called this a "race-neutral" outcome because no group was disadvantaged more than any other. So, New Haven's idea of equal treatment is to equally deny promotions to those who did not earn them and those, including Ricci, who did.

Ricci may be the rock upon which America's racial spoils system finally founders. He prepared for the 2003 exams by quitting his second job, buying the more than $1,000 worth of books the city recommended, paying to have them read onto audiotapes (he is dyslexic), taking practice tests and practice interviews. His studying -- sometimes 13 hours a day -- earned him the sixth-highest score on the exam. He and others denied promotions sued, charging violations of the 1964 Civil Rights Act and the Constitution's guarantee of equal protection of the law.

The city claims that the 1964 act (BEG ITAL)compelled(END ITAL) it to disregard the exam results. The act makes it unlawful for employers to discriminate against an individual regarding the "terms, conditions, or privileges of employment because of such individual's race." And two Senate supporters of the 1964 act, both of them leading liberals (Pennsylvania Democrat Joseph Clark and New Jersey Republican Clifford Case), insisted that it would not require "that employers abandon bona fide qualification tests where, because of differences in background and educations, members of some groups are able to perform better on these tests than members of other groups."

In a 1971 case, however, the Supreme Court sowed confusion by holding that the 1964 act proscribes not only overt discrimination but also "practices that are fair in form, but discriminatory in operation." But what New Haven ignored is that the court, while proscribing tests that were "discriminatory" in having a "disparate impact" on certain preferred minorities, has held that a disparate impact is unlawful only if there is, and the employer refuses to adopt, an equally valid measurement of competence that would have less disparate impact, or if the measurement is not relevant to "business necessity." One of the city's flimsy excuses for disregarding its exam results was that someone from a rival exam-writing firm said that although he had not read the exam the city used, his company could write a better one.

New Haven has not defended its implicit quota system as a remedy for previous discrimination, and has not justified it as a way of achieving "diversity," which can be a permissible objective for schools' admissions policies, but not in employment decisions. Rather, the city says it was justified in ignoring the exam results because otherwise it might have faced a "disparate impact" lawsuit.

So, to avoid defending the defensible in court, it did the indefensible. It used anxiety about a potential challenge under a statute to justify its violation of the Constitution. And it got sued.

Racial spoils systems must involve incessant mischief because they require a rhetorical fog of euphemisms and blurry categories (e.g., "race-conscious" measures that somehow do not constitute racial discrimination) to obscure stark facts, such as: If Ricci and half a dozen others who earned high scores were not white, the city would have proceeded with the promotions.

Some supporters of New Haven, perhaps recognizing intellectual bankruptcy when defending it, propose a squishy fudge: Return the case to the trial court to clarify the city's motivation. But the motivation is obvious: to profit politically from what Roberts has called the "sordid business" of "divvying us up by race."

08 April, 2009

More facts about GM

I really like his point about the government only agreeing to bailout Chrysler if they are taken over by Italian automaker fiat.  At the least this seems a little inconsistent with President Obama's "America First" approach to manufacturing...

P.S. - Did you know the Prius sells at a loss?  Funny, you don't hear that part of the story very often...

Car Designer in Chief

George Will
Sunday, April 05, 2009

WASHINGTON -- The Constitution enumerates three requirements of those who would be president (they must be natural-born citizens, at least 35 and a resident within the country for 14 years) and now the government's thrashing about in the economy imposes a fourth: Presidents must be able to speak pluperfect nonsense with a straight face, lest the country understand what the government is doing. Obfuscation serves political salvation when what the government is doing includes promising that if Chrysler will sell itself to Fiat, U.S. taxpayers will lend that Italian firm $6 billion.

Barack Obama displayed reality-denying virtuosity last week when, announcing the cashiering of General Motors' CEO, and naming his replacement, and as the government was prompting selection of a new majority of GM's board of directors, and as the government announced the next deadline for GM to submit a more satisfactory viability plan than it submitted at the last faux deadline, and as the government kept the billions flowing to tide GM over until, well, whenever, the president said: "The United States government has no interest in running GM."

Actually, his administration prefers to do that rather than allow bankruptcy to infuriate the United Auto Workers union, which was pre-emptively grateful to Obama's administration with lavish contributions to candidate Obama. The president supposedly showed "toughness" in sacking a conspicuous member of a particularly unpopular little cohort, CEOs of big corporations. He will need more grit if, as his administration hints, this time it is serious, that its patience is wearing thin, that someday GM could face "controlled" or "prepackaged" or "surgical" bankruptcy. One suspects that those adjectives intimate that it will be faux bankruptcy, gentle in dealing with the UAW.

Last November, five months and $17.4 billion in auto bailouts ago, this column noted: "Some opponents of bankruptcy say: GM must not be allowed to fail before it perfects batteries for its electric-powered Volt, which supposedly is a key to the company's resurrection. This vehicle was concocted to serve GM's prolonged attempt to ingratiate itself with the few hundred environmentally obsessed automotive engineers in Congress. They have already voted tax credits of up to $7,500 for purchasers of such cars -- bribes that reveal doubts about consumer enthusiasm for them at a price that would reflect cost."

In December, GM, by then a mendicant groveling before its congressional masters, ran a full-page newspaper ad apologizing for having "disappointed" everyone, vowing to stop selling so many "pickups and SUVs" (which were 11 of GM's 20 most profitable products in 2008), and promising "revolutionary new products like the Chevrolet Volt." Another ad, which appeared before December and is still running, features a car attached to an electric cord, and says the Volt amounts to "reinventing the automobile."

Last week, in an unenthralled summary of GM's "viability" plan, Obama's administration said: "GM earns a large share of its profits from high-margin trucks and SUVs, which are vulnerable to a continuing shift in consumer preference to smaller vehicles. Additionally, while the Chevy Volt holds promise, it will likely be too expensive to be commercially successful in the short term."

The stunning shift in consumer preferences that should make the White House's freshly minted auto experts feel vulnerable has been reported under headlines such as "Like a Rock: Hybrid Car Sales Plummet" (Wall Street Journal, Dec. 9) and "Hybrid Car Sales Go from 60 to 0 at Breakneck Speed" (Los Angeles Times, March 17). Absent $4 gasoline, customers, those nuisances with their insufferable preferences, do not want the vehicles the politicians want them to want, even with manufacturers now offering large rebates and other incentives.

The two best-selling vehicles in America this year are large pickup trucks (Ford F-Series and Chevy Silverado). In February, Toyota sold 13,600 Tundra and Tacoma pickups and 7,232 Priuses. It sells the Prius at a loss, which it can afford to do because it makes pots of money selling pickups. Has the Car Designer in Chief, aka the president, considered the possibility that what he calls "the cars of tomorrow" will forever be that?

His administration cannot be faulted for failing to do well what cannot be done well -- industrial policy, wherein the political class, with negligible experience in commerce, flounders. The administration can, however, be faulted for trying. The government's wallow in the automobile industry, under this and the previous administration, merits a hockey coach's evaluation of his team: "Everyday you guys look worse and worse. And today you played like tomorrow."

02 April, 2009

You Break it...

Obama and GM
Dick Morris and Eileen McGann
Wednesday, April 01, 2009

GM, now renamed Government Motors, has a new CEO: President Barack Obama. By replacing the head of the company and demanding a restructuring of its board in return for further financial TARP aid, Obama has taken upon himself the responsibility for the future of the company. As Gen. Colin Powell said when Bush was considering invading Iraq and toppling the Saddam Hussein government, "If you break it, you own it." Now it is Obama's company.

This move will backfire big-time! The auto giant is very, very unlikely to be saved by this current TARP infusion. Doubtless, it will need more in the near term. But the resentment now focused on the management of the company will then turn to Obama. Having demanded a replacement of the management, it is he who will be held responsible for the company's future.

And, each time GM asks for more money, Obama will face a choice: take personal responsibility for laying off 100,000 autoworkers or anteing up the additional cash. By intruding himself so deeply into the management of the company, Obama makes himself central to its future. If Obama lets the company fail, having already extended credit, he will have all of Michigan on his case. If he keeps coming up with more and more tax money, he will earn the contempt of the voters.

Socialism has its price. By taking over the management of a company, you become the determinant of its fate in the public's mind.

Obama does not seem to realize that government takeover is the beginning, not the end, of the problem. He should have stuck with being president and leave making cars to others.

And, as the new CEO of General Motors, what will his policy be on corporate compensation? Will the public tolerate his letting his new company pay salaries sufficient to attract the talent necessary to salvaging the firm? Or will he have to rely on a bunch of kids right out of school, willing to work for one or two hundred thousand a year, for the company's salvation?

When it comes to the hard work of cutting retiree health benefits, reducing salaries, laying off workers and closing plants, is Obama willing to resist calls for his intervention? Is he up for getting the blame for all the "heartless" measures GM will have to take to salvage its future? He has put himself squarely in a position to pay a steep political price for his assumption of power in GM.

Most troubling is the sense that Obama cannot have thought this through. He can't have planned this. President Clinton used to say at strategy meetings that we needed to think three or four moves ahead and not just "kick the can down the road." Obama is clearly not following his predecessor's advice.

He realized GM needed money. He knew the public would have a fit if he gave it. So he decided that he would appease his electorate by exacting blood from the company's management and directors by using his guillotine on some of its old grey heads.

But, had he thought before he acted, he would have realized that it would have been far better to have criticized GM from a distance even as he extended more money rather than to, in effect, take over the company.

The president's protestations that the government does not want to own a car company are quite beside the point. It's his now, and he better figure out what to do with it. 

The Devil is in the Details...

While I don't totally blame government leaders for relying on statistics compiled by others, using statistics that are so blatently wrong definitely skews the debate...

The Myth of 90 Percent: Only a Small Fraction of Guns in Mexico Come From U.S.

While 90 percent of the guns traced to the U.S. actually originated in the United States, the percent traced to the U.S. is only about 17 percent of the total number of guns reaching Mexico.

Thursday, April 02, 2009

EXCLUSIVE: You've heard this shocking "fact" before -- on TV and radio, in newspapers, on the Internet and from the highest politicians in the land: 90 percent of the weapons used to commit crimes in Mexico come from the United States.

-- Secretary of State Hillary Clinton said it to reporters on a flight to Mexico City.

-- CBS newsman Bob Schieffer referred to it while interviewing President Obama.

-- California Sen. Dianne Feinstein said at a Senate hearing: "It is unacceptable to have 90 percent of the guns that are picked up in Mexico and used to shoot judges, police officers and mayors ... come from the United States."

-- William Hoover, assistant director for field operations at the Bureau of Alcohol, Tobacco, Firearms and Explosives, testified in the House of Representatives that "there is more than enough evidence to indicate that over 90 percent of the firearms that have either been recovered in, or interdicted in transport to Mexico, originated from various sources within the United States."

There's just one problem with the 90 percent "statistic" and it's a big one:

It's just not true.

In fact, it's not even close. The fact is, only 17 percent of guns found at Mexican crime scenes have been traced to the U.S.

What's true, an ATF spokeswoman told FOXNews.com, in a clarification of the statistic used by her own agency's assistant director, "is that over 90 percent of the tracedfirearms originate from the U.S."

But a large percentage of the guns recovered in Mexico do not get sent back to the U.S. for tracing, because it is obvious from their markings that they do not come from the U.S.

"Not every weapon seized in Mexico has a serial number on it that would make it traceable, and the U.S. effort to trace weapons really only extends to weapons that have been in the U.S. market," Matt Allen, special agent of U.S. Immigration and Customs Enforcement (ICE), told FOX News.

A Look at the Numbers

In 2007-2008, according to ATF Special Agent William Newell, Mexico submitted 11,000 guns to the ATF for tracing. Close to 6,000 were successfully traced -- and of those, 90 percent -- 5,114 to be exact, according to testimony in Congress by William Hoover -- were found to have come from the U.S.

But in those same two years, according to the Mexican government, 29,000 guns were recovered at crime scenes.

In other words, 68 percent of the guns that were recovered were never submitted for tracing. And when you weed out the roughly 6,000 guns that could not be traced from the remaining 32 percent, it means 83 percent of the guns found at crime scenes in Mexico could not be traced to the U.S.

So, if not from the U.S., where do they come from? There are a variety of sources:

-- The Black Market. Mexico is a virtual arms bazaar, with fragmentation grenades from South Korea, AK-47s from China, and shoulder-fired rocket launchers from Spain, Israel and former Soviet bloc manufacturers.

-- Russian crime organizations. Interpol says Russian Mafia groups such as Poldolskaya and Moscow-based Solntsevskaya are actively trafficking drugs and arms in Mexico.

- South America. During the late 1990s, the Revolutionary Armed Forces of Colombia (FARC) established a clandestine arms smuggling and drug trafficking partnership with the Tijuana cartel, according to the Federal Research Division report from the Library of Congress.

-- Asia. According to a 2006 Amnesty International Report, China has provided arms to countries in Asia, Africa and Latin America. Chinese assault weapons and Korean explosives have been recovered in Mexico.

-- The Mexican Army. More than 150,000 soldiers deserted in the last six years, according to Mexican Congressman Robert Badillo. Many took their weapons with them, including the standard issue M-16 assault rifle made in Belgium.

-- Guatemala. U.S. intelligence agencies say traffickers move immigrants, stolen cars, guns and drugs, including most of America's cocaine, along the porous Mexican-Guatemalan border. On March 27, La Hora, a Guatemalan newspaper, reported that police seized 500 grenades and a load of AK-47s on the border. Police say the cache was transported by a Mexican drug cartel operating out of Ixcan, a border town.

'These Don't Come From El Paso'

Ed Head, a firearms instructor in Arizona who spent 24 years with the U.S. Border Patrol, recently displayed an array of weapons considered "assault rifles" that are similar to those recovered in Mexico, but are unavailable for sale in the U.S.

"These kinds of guns -- the auto versions of these guns -- they are not coming from El Paso," he said. "They are coming from other sources. They are brought in from Guatemala. They are brought in from places like China. They are being diverted from the military. But you don't get these guns from the U.S."

Some guns, he said, "are legitimately shipped to the government of Mexico, by Colt, for example, in the United States. They are approved by the U.S. government for use by the Mexican military service. The guns end up in Mexico that way -- the fully auto versions -- they are not smuggled in across the river."

Many of the fully automatic weapons that have been seized in Mexico cannot be found in the U.S., but they are not uncommon in the Third World.

The Mexican government said it has seized 2,239 grenades in the last two years -- but those grenades and the rocket-propelled grenades (RPGs) are unavailable in U.S. gun shops. The ones used in an attack on the U.S. Consulate in Monterrey in October and a TV station in January were made in South Korea. Almost 70 similar grenades were seized in February in the bottom of a truck entering Mexico from Guatemala.

"Most of these weapons are being smuggled from Central American countries or by sea, eluding U.S. and Mexican monitors who are focused on the smuggling of semi-automatic and conventional weapons purchased from dealers in the U.S. border states of Texas, New Mexico, Arizona and California," according to a report in the Los Angeles Times.

Boatloads of Weapons

So why would the Mexican drug cartels, which last year grossed between $17 billion and $38 billion, bother buying single-shot rifles, and force thousands of unknown "straw" buyers in the U.S. through a government background check, when they can buy boatloads of fully automatic M-16s and assault rifles from China, Israel or South Africa?

Alberto Islas, a security consultant who advises the Mexican government, says the drug cartels are using the Guatemalan border to move black market weapons. Some are left over from the Central American wars the United States helped fight; others, like the grenades and launchers, are South Korean, Israeli and Spanish. Some were legally supplied to the Mexican government; others were sold by corrupt military officers or officials.

The exaggeration of United States "responsibility" for the lawlessness in Mexico extends even beyond the "90-percent" falsehood -- and some Second Amendment activists believe it's designed to promote more restrictive gun-control laws in the U.S.

In a remarkable claim, Auturo Sarukhan, the Mexican ambassador to the U.S., said Mexico seizes 2,000 guns a day from the United States -- 730,000 a year. That's a far cry from the official statistic from the Mexican attorney general's office, which says Mexico seized 29,000 weapons in all of 2007 and 2008.

Chris Cox, spokesman for the National Rifle Association, blames the media and anti-gun politicians in the U.S. for misrepresenting where Mexican weapons come from.

"Reporter after politician after news anchor just disregards the truth on this," Cox said. "The numbers are intentionally used to weaken the Second Amendment."

"The predominant source of guns in Mexico is Central and South America. You also have Russian, Chinese and Israeli guns. It's estimated that over 100,000 soldiers deserted the army to work for the drug cartels, and that ignores all the police. How many of them took their weapons with them?"

But Tom Diaz, senior policy analyst at the Violence Policy Center, called the "90 percent" issue a red herring and said that it should not detract from the effort to stop gun trafficking into Mexico.

"Let's do what we can with what we know," he said. "We know that one hell of a lot of firearms come from the United States because our gun market is wide open."

31 March, 2009

1 Year Anniversary


Today is the 1-year anniversary of the blog.  Thank you to everyone who reads and contributes to this space.  Have a great week.

27 March, 2009

Budget Chart

If this doesn't scare you, I don't know what will.  Below are the actual budget deficits (in gray) amassed by the federal government compared to the projected deficits (in red) should President Obama's current budget be approved by congress.

Wow.

First of all, I don't know how anyone can say "but Republicans did it too".  Yes, that is true (and not something they should be proud of), but those levels of spending do not compare to what is being contemplated now.  Every time someone goes to that excuse, it means they can't justify what they are proposing with actual facts and have to try to shift the focus and blame elsewhere.

How can we possibly recover from such ridiculously high spending levels? 

26 March, 2009

First NY's "Fat Tax", now this...

Is this the world you want?  Where any decision that might negatively impact someone at sometime will be banned?  I am all for trying to reduce negative externalities, but this is ridiculous...

California to reduce carbon emissions by... banning black cars?!



In a move that will likely get California's consumers in a huff, impending legislation may soon restrict the paint color options for Golden State residents looking for their next new vehicle. The specific colors that are currently on the chopping block are all dark hues, with the worst offender seemingly the most innocuous color you could think of: Black. What could California possibly have against these colors, you ask? Apparently, the California Air Resources Board figures that the climate control systems of dark colored cars need to work harder than their lighter siblings – especially after sitting in the sun for a few hours. Anyone living in a hot, sunny climate will tell you that this assumption is accurate, of course. In fact, legislation already exists for buildings that has proven successful at reducing the energy consumption of skyscrapers.

So, what's the crux of the problem... can't paint suppliers just come up with new, less heat-absorbent dark paints? According to Ward's, suppliers have reportedly been testing their pigments and processes to see if it's possible to meet CARB's proposed mandate of 20% solar reflectivity by 2016 with a phase-in period starting in 2012, and things aren't looking good. Apparently, when the proper pigments and chemicals are added to black paint, the resulting color is currently being referred to as "mud-puddle brown." That doesn't sound very attractive, now does it? Windshields, backlights and sunroofs are also slated to get reflective coatings starting in 2012.

When we first heard of this issue, an internal debate immediately began as to whether this might be an elaborate early April Fool's joke, but it isn't. Read through CARB's complete Cool Cars Standards and Test Procedures here for more.

The party of "no"? Um...No

House Republicans Propose Alternative Budget

By Perry Bacon Jr.

House Republicans today outlined how they would write the federal budget if they controlled Congress, looking to rebut criticism from President Obama that the GOP is simply complaining about his blueprint but not offering proposals of its own.

Republican lawmakers refused to offer details of how much their alternative budget proposal would cost or how much it would increase the deficit, saying they would release overall numbers next week. Instead, they provided a general outline of proposals that included cutting overall government spending except for defense, banning any additional spending for bailouts of financial companies and a huge income tax cut that would make the maximum tax rate 25% instead of 36% as under current law.

"Two nights ago, the president said we haven't seen a budget yet of the Republicans," said House Minority Leader Rep. John Boehner (R-Ohio). "Well, it's not true, because here it is Mr. President." He waved a thin document called "The Republican Road to Recovery" that describes the GOP proposal.

Rep. Paul Ryan (R-Wis.), the top Republican on the House Budget Committee, said "while we criticize, we propose."

Senate Republicans have decided not to release an alternative budget, but will offer a series of amendments next week to try to reduce the spending under the Democratic budget proposals. House rules allow Democrats to limit the number of amendments offered, so Republicans there will offer only their complete budget alternative.

"Our economic plan amounts to less government, lower taxes and economic prosperity," the GOP document says.

The proposal continues Republicans' push for lower spending and greater tax cuts in response to Obama's budget proposal, which costs about $3.6 trillion and would increase the deficit by $1.38 trillion next year.

24 March, 2009

Political Malfeasance and the Financial Meltdown

Political Malfeasance and the Financial Meltdown
George Will
Tuesday, March 24, 2009

WASHINGTON -- With the braying of 328 yahoos -- members of the House of Representatives who voted for retroactive and punitive use of the tax code to confiscate legal earnings of a small unpopular group -- still reverberating, the Obama administration Monday invited private-sector investors to become business partners with the capricious and increasingly anti-constitutional government. This latest plan to unfreeze the financial system came almost half a year after Congress shoveled $700 billion into the Troubled Asset Relief Program, $325 billion of which has been spent without purchasing any toxic assets.

TARP funds have, however, semi-purchased, among many other things, two automobile companies (and, last week, some of their parts suppliers), which must amaze Sweden. That unlikely tutor of America regarding capitalist common sense has said, through a Cabinet minister, that the ailing Saab automobile company is on its own: "The Swedish state is not prepared to own car factories."

Another embarrassing auditor of American misgovernment is China, whose premier has rightly noted the unsustainable trajectory of America's high-consumption, low-savings economy. He has also decorously but clearly expressed sensible fears that his country's $1 trillion-plus of dollar-denominated assets might be devalued by America choosing, as banana republics have done, to use inflation for partial repudiation of improvidently incurred debts.

From Mexico, America is receiving needed instruction about fundamental rights and the rule of law. A leading Democrat trying to abolish the right of workers to secret ballots in unionization elections is California's Rep. George Miller who, with 15 other Democrats, in 2001 admonished Mexico: "The secret ballot is absolutely necessary in order to ensure that workers are not intimidated into voting for a union they might not otherwise choose." Last year, Mexico's highest court unanimously affirmed for Mexicans the right that Democrats want to strip from Americans.

Congress, with the approval of a president who has waxed censorious about his predecessor's imperious unilateralism in dealing with other nations, has shredded the North American Free Trade Agreement. Congress used the omnibus spending bill to abolish a program that was created as part of a protracted U.S. stall regarding compliance with its obligation to allow Mexican long-haul trucks on U.S roads. The program, testing the safety of Mexican trucking, became an embarrassment because it found Mexican trucking at least as safe as U.S. trucking. Mexico has resorted to protectionism -- tariffs on many U.S. goods -- in retaliation for Democrats' protection of the Teamsters union.

NAFTA, like all treaties, is the "supreme law of the land." So says the Constitution. It is, however, a cobweb constraint on a Congress that, ignoring the document's unambiguous stipulations that the House shall be composed of members chosen "by the people of the several states," is voting to pretend that the District of Columbia is a state. Hence it supposedly can have a Democratic member of the House and, down the descending road, two Democratic senators. Congress rationalizes this anti-constitutional willfulness by citing the Constitution's language that each house shall be the judge of the "qualifications" of its members and Congress can "exercise exclusive legislation" over the District. What, then, prevents Congress from giving House and Senate seats to Yellowstone National Park, over which Congress exercises exclusive legislation? Only Congress' capacity for embarrassment. So, not much.

The Federal Reserve, by long practice rather than law, has been insulated from politics in performing its fundamental function of preserving the currency as a store of value -- preventing inflation. Now, however, by undertaking hitherto uncontemplated functions, it has become an appendage of the executive branch. The coming costs, in political manipulation of the money supply, of this forfeiture of independence could be steep.

Jefferson warned that "great innovations should not be forced on slender majorities." But Democrats, who trace their party's pedigree to Jefferson, are contemplating using "reconciliation" -- a legislative maneuver abused by both parties to severely truncate debate and limit the minority's right to resist -- to impose vast and controversial changes on the 17 percent of the economy that is health care. When the Congressional Budget Office announced that the president's budget underestimates by $2.3 trillion the likely deficits over the next decade, his budget director, Peter Orszag, said: All long-range budget forecasts are notoriously unreliable -- so rely on ours.

This is but a partial list of recent lawlessness, situational constitutionalism and institutional derangement. Such political malfeasance is pertinent to the financial meltdown as the administration, desperately seeking confidence, tries to stabilize the economy by vastly enlarging government's role in it.