Donald Trump as the Isolationist in Chief... Not a Recipe for Success

As I’ve said before, if Donald Trump is the nominee I will vote for him over anyone the donkey party runs. Why? One reason… the single greatest threat to our nation is open borders and the continued entry of people from failed states with no understanding or appreciation for limited government or individual rights. The Democrat Party, which has a similar disdain for both things, has almost destroyed the country on its own and with open borders it seeks to tip the scales of our Republic towards their tyranny by packing the voting rolls with such invaders…

The candidate who promises to build a wall and curtail illegal immigration gets my vote… and my hope that he will actually do so.

But I have to say, Trump continues to make it much more painful to be willing to support him. From his thin skin and childish Twitter tirades, it makes one wonder how temperamental a President Trump might be. Something more consequential that forces some soul searching when considering voting for him is his unserious perspective on international relations. When he says things about not sending money to countries that hate us, that makes pretty good sense and makes a great place to start with foreign aid. But he doesn’t stop there. There are two things that are particularly troubling about his foreign affairs perspective. His populist tirades against free trade, and his statement of two weeks ago that the United States should pull back from its leadership in NATO.

On the former, Trump cries that the United States is losing out on trade with China and Mexico and other nations around the world and that these countries are taking the jobs of millions of Americans. Both of those suggestions may indeed be accurate, but he is wrong in that they are a symptom, not the illness itself. The primary driver of those issues is not that Mexico or China are cheats. They may be manipulating their currencies or labor markets, but that’s not why American companies choose to build iPhones in China or cars in Mexico. It’s American taxes and regulations… Think about it, China is a Communist country separated from the US by 6,000 miles of water and Mexico is a dysfunctional quasi state where the politicians and population are perpetually intimidated by narco terrorists. And somehow it makes sense that a US company would want to manufacture widgets in those places rather than in Detroit or Pittsburgh? Yes. Sure, labor costs are a problem, but it’s regulations and taxes that are the real drivers of trade deficits. According to the Competitive Enterprise Institute, federal regulations cost American consumers almost $2 trillion in lost economic productivity and higher costs in 2014. And that’s just the federal government! That $2 Trillion was almost four times the entire US trade deficit with the whole world that year! Add to that the fact that US tax rates are the highest in the developed world and that giant sucking sound of jobs you hear is not because of China or Mexico’s cheating, but rather because the US government is simply making it too difficult to operate profitably in the United States. If Trump wanted to make our trade balance more balanced and bring back jobs he’d focus on eliminating regulations here rather than spending most of his time demagoguing the rest of the world.

The bigger problem with Trump’s world view is his fundamental misunderstanding of the role of the United States in said world. Two weeks ago he suggested that the United States should take a step back in its leadership of NATO. We could do that and it would certainly save us billions of dollars a year. But it not only would it lead to a world war, but it would be the catalyst for a collapse of the world economy and western culture. Why? Because it was American military power, presence and a willingness to use both that has kept the west largely at peace for the last 70 years and driven a greater increase in world prosperity than in any period in all of human history.

To understand the impact of a United States led NATO, one simply has to look at the history of Europe. For two millennium, from the rise and fall of the Roman Empire to the rise and collapse of the British Empire, Europe was at an almost constant state of war either within itself or without, and often brought much of the rest of the planet along with it.  That reality culminated in the two world wars of the first half of the 20th century that cost the lives of over 100 million men women and children. Post WWII however, after the United States military brought order to a world in chaos, Europe and much of that world have enjoyed an unprecedented period of relative peace, and as a result saw wealth and prosperity grow and expand at levels unprecedented in human history.

None of that happens without a NATO led by the United States. It was NATO that kept the Russian bear at bay for half a century and American leadership in the Pacific that kept the Red Chinese from swallowing much of Asia. And as a result Europe and Asia have become critical trading partners with the United States and have provided both markets for our goods and sources for things that make our lives better.

And now Donald Trump wants to abandon NATO leadership. In the name of populist rhetoric he wants to turn his back on a successful world that the United States largely designed and benefits from. That would be a mistake. For our partners in NATO, for much of the world that relies on the west for leadership and trade, and, most of all, Americans. The solution to a troubled planet isn’t to pull up the drawbridges and hide behind the moat… But that seems to be the Donald’s plan.

It would be a tragedy if American leadership having already devolved from Ronald Reagan defeating the Soviet Union and winning the Cold War to Barack Obama embracing anti American thugs across the planet and unleashing ISIS on the world is followed up by Donald Trump reviving the isolationist policies of the 1930s that led to WWII… because with bellicose and acquisitive states like Russia and China unrestrained by American strength it would not be long before WWIII was at our shores.

But, such is the nature of populist candidates. Say and do anything that will get cheers from the crowds and ignore the consequences down the road. Let’s hope in November we have a Ted Cruz lever to pull

Secession, Revolution... are they the end game of a deck stacked against freedom?

I’ve argued for many years that the United States is the greatest nation in the history of the world. From driving prosperity to winning two world wars to putting a man on the moon to ensuring individual liberty the United States is unlike any other country in history. And it has nothing to do with DNA. Indeed, some of America’s greatest men came from elsewhere… Alexander Hamilton was born on St. Kitts. Andrew Carnegie was born in Scotland. Albert Einstein was born in Germany. Leo Baekeland – the man who brought us plastic – was from Hungary. Nikola Tesla – the man responsible for the current running in your house – was born in Croatia.

It’s not the blood that makes the United States great, it is the Constitution. The US Constitution was the first document in history to form a government based on the principals of individual freedom, private property, limited / representative government and the rule of law. None of the things in the Constitution were completely unique. The Greeks had representative government and the Magna Carta put limitations on the Crown after all. What made the Constitution unique was the combination of those factors and the fact that the power resided in the hands of common citizens.

That could, frankly, have only occurred in the United States… because it was a new and free nation. Because of that youth, the colonies did not have vested interests sufficiently powerful to mold the formation of the government to benefit themselves. And as a result, the power resided in the hands of common men, the citizens. Not in the hands of an aristocracy. Not in the hands of the church. Not in the hands of some bourgeoisie merchants. No, in the United States the power to govern was put in the hands of regular citizens. There were power centers of course, but none – such as the northern states who still had debts to be paid from the Revolutionary War and the southern states who wanted low or no import tariffs – had the power to dictate the language of the Constitution. (To the degree that there was one vested interest powerful enough to make such a demand it was the slave states and the result was the most anti-freedom part of a document built on freedom.)

But why Philadelphia and not London or Paris? Both the British and the French had access to the same writings our Founding Fathers did – from Plato to the Old Testament to the Magna Carta to John Locke and Adam Smith and William Blackstone and Edmond Burke – but they did not create anything like US Constitution. Indeed, France, whose revolution followed the American revolution by a mere decade, spiraled into bloody chaos and brought about a dictatorship. The reason is because both France and England had strong vested interests loathe to give up their power and privileges, and as a result, neither laid the foundations for lasting prosperity that the US Constitution did.

And that prosperity was enormous and far reaching. By 1950 the United States economy was more dominant on the world stage than any economy in history. The US commanded fully 40% of the world’s GDP with less than 5% of its population. While both China and India had achieved that same 40% mark centuries before, they accomplished it with 35% & 30% of the world’s population respectively.

And that economic prosperity ushers in many benefits that are not measured in dollars like life expectancy increases, leisure time growth and dramatically safer employment conditions. Another measure of the impact of that prosperity is the Nobel Prize. Since the American economic heyday of the 1950’s, Americans have won over 50% of the Nobel Prizes in Physics, Chemistry, Medicine and Economics. Interestingly, 1/3 of those winners were immigrants who chose to come to the United States in pursuit of success, often because they didn’t feel they could do so at home. America is increasingly the epicenter of research of all sorts. Unfortunately however, it is not research that drives prosperity, it is economics and increasingly the United States is falling behind.

The freedom that drove the United States to become the most influential economic juggernaut in history no longer exists.  Today American GDP is 23% of the world's.  While we are still experiencing advances in technology and medicine, increasingly the United States is becoming an economic morass. Although we see companies like Apple, Facebook and Google creating millionaires and billionaires by giving citizens great products, the chasm between the ultra rich and the middle class and poor is growing. An example is that can be seen in the data since the recession of 2007 & 2008. According to the Wall Street Journal:

“All told, average inflation-adjusted income per family climbed 6% between 2009 and 2012, the first years of the economic recovery. During that period, the top 1% saw their incomes climb 31.4% — or, 95% of the total gain — while the bottom 99% saw growth of 0.4%.”

But it’s broader than that. American incomes have been declining for over a decade, from a high of $56,080 in 1999 (inflation adjusted) to $51,017 in 2012, a drop of almost 10%, a decline unprecedented since the Great Depression – another government induced disaster. But it didn’t need to be this way. Had our economy had been as productive over the last twenty years as it was in the 1950’s and 60’s the average American family would today have an income in excess of $120,000 per year. At the same time, and not coincidentally, the rate of employment in the United States has plummeted, with the labor force participation rate at its lowest level since 1978 and disability claims skyrocketing.

All of this, and much more, are the consequence of the United States abandoning the very things that caused it to be great in the first place: limited government and individual liberty. Just as the British and the French were straight jacketed by their vested interests the United States is straight jacketed today. And that vested interest is government.

Entrepreneurship has been the life’s blood of American prosperity and today it’s on the ropes. While Silicon Valley venture capitalists throw money at high tech startups the rest of the country has seen regulation strangle entrepreneurs in their cribs. Government regulations, particularly federal regulations, have strangled small businesses in America. For the last 40 years the gap between the rate of companies starting to rate of those failing has been getting smaller. The bigger the gap (Companies started – companies failed) the better for the economy because it means more companies are surviving and creating jobs and value. In 2009 the lines crossed and today there are more companies failing than are started annually. The result less prosperity as small businesses are the golden goose of the American economy, generating 65% of all new jobs.

What we have today as a result are fewer, bigger companies that are increasingly turning to the government to hinder competition. From Wal-Mart supporting Obamacare to steel companies seeking import tariffs to General Electric pursuing Export / Import Bank subsidies to Wall Street banks lobbying for low interest rates to the Chamber of Commerce advocating for open borders, big companies are increasingly looking for government to protect them from the vagaries and verities of the competitive markets that helped create American prosperity in the first place. They are willing to trade higher taxes and endure more regulation for a playing field that is tilted in their favor… that is of course until when the taxes become too high and the regulation becomes too onerous, then they simply relocate outside the country.

In America in 2014 we have the opposite of the recipe for prosperity. We have a ruling class that has no desire to give up its power and privileges and a business class willing bend to that power and fund those privileges in the name of fattening their bottom lines. In this case the ruling class is the federal government. The power is demonstrated by the fact that the federal government has its claws in virtually every aspect of American life… from what you can do with your land to what your kids can bake for a bake sale at school to the healthcare you have to the kinds of light bulbs you can buy. At the same time they are writing thousand page laws – which generate tens of thousands of pages of regulations – the government is taking ever greater amounts of money from taxpayers for its redistribution schemes. From a sixth of the population on food stamps to taxing the lunch your boss provides, the ruling class of government seeks to control virtually every aspect of American life.

And being in power has its privileges. Federal workers have achieved for themselves that $120,000 average income (including benefits) while the average private sector employee gets by with less than half that. Seven out of the country’s ten richest counties – out of over 3,000 – surround Washington, D.C. And of course government employees enjoy almost guaranteed lifetime employment. And those at the upper echelons enjoy even better privileges, taking advantage of the revolving door of power. When their party is out of power the revolving door turns and the regulators simply join the regulated class or their lobbyists, at even higher salaries, until their party returns to power and the cycle starts over again.

Perhaps the perfect example of how America used to be a place where things could get done, where private enterprise could achieve great things was the Empire State Building. Started in 1929, it took 14 months – four months ahead of schedule – to complete what would be the tallest building in the world for the next 40 years. Today, 13 years after the destruction of the towers that took that tallest designation from it, the World Trade Center complex is still not complete. Only within the last year did the first of the towers open that would replace the destroyed complex and pieces of it are not expected to be completed before 2020… 19 years after the complex was destroyed. And it may well be the most expensive building project in American history. Was it technical capabilities that kept the complex from being replaced? Had Americans suddenly become too stupid to understand how to build buildings? No. It was bureaucracy. It was regulations. It was lawsuits and political interference. In other words it was government and government empowered chaos.

Which brings us back to the beginning. The United States was at one time the single greatest economic power in human history. As a result of that prosperity it has had more of a positive impact on the condition of man than any force in history. But that was an America where citizens had big ideas and big dreams, and the freedom to build on the first to achieve the second. Today that America doesn’t exist and a tyranny of the vested interests has replaced it. From government bureaucracy to crony capitalists to politicians who use the government purse as a vote buying scheme, America is no longer the bastion of freedom and prosperity that it once was. It is no longer the shining city on a hill. It is no longer the place where anyone can pull themselves up by their bootstraps by sheer will and hard work. And as guilty as the Democrats are in this, there are many big government Republicans who are just as much to blame.

Is it any wonder that 25% of Americans would consider secession? No. I count myself among them.  What about a revolution? Yes, I’d consider that too, but not the violent kind in either case. When faced with the same kind of vested interests that kept the British or the French from doing what our Founding Fathers did, what can be done? The real question isn’t whether the gift that James Madison, George Mason, John Hancock and Sam Adams gave us can be saved? The answer to that is yes. The real question is, how…

The Greek Tragedy of Obamacare

Have you ever found yourself in a situation where at some point you stop and ask yourself “how the hell did I end up here?” I have, and like a Greek tragedy, usually whatever predicament I found myself in was the result of a number of poor decisions that seemed to compound themselves until they finally reached a point where I had to stop and say “What the hell am I doing?” At that point I had to figure out if there was a way to extricate myself from the situation without hanging myself in the process…

That is exactly where the country is in reference to Obamacare.

Obamacare was passed in 2009 in reaction to anecdotal examples of Americans who couldn’t get healthcare. According to Gallop, in 2009 there were 50 million Americans who did not have health insurance. That represented approximately 16% of the population. Gallop also reported that of those without health insurance, fully 50% were satisfied with their healthcare. That means that fully 92% of the American population either had health insurance – 80% of whom were satisfied with that insurance – or were satisfied enough with their healthcare not to have insurance.

To give those numbers a bit of perspective, compare them the rest of the developed world. The Organization for Economic Co-operation and Development publishes the Better Life Index which ranks developed nations by a wide variety of criteria, one of which is health. According to the 2011 Better Life Index survey, in 2009 88% of Americans were satisfied with their health. Of the 34 countries covered in the data, in only two – New Zealand (89.7%) and Canada (88.1%) did citizens report a higher level of satisfaction with their health. Not the United Kingdom (76%). Not France (72.4%). Not Sweden (79.1%). Now, of course health is not healthcare, but the goal of healthcare is to improve or sustain a person’s health.

So, in 2009, when 92% of Americans had health insurance or were satisfied enough with their healthcare not to have it, and 88% of Americans were satisfied with their health, we got Obamacare, a 2,000 page bill that needed to be passed before it could be read.

None of that suggests that there were not people who had challenges, difficulties and, frankly, unfair situations. Those people and those difficult situations did indeed exist. But they exist in every endeavor of man in which human beings play a part. Nothing manmade is ever perfect. But 92% was pretty damn good for a country of 305 million widely diverse people. That doesn’t mean that things couldn’t have improved. From allowing a national marketplace to eliminating tax deductions to implementing tort reform, there were many proposals for improving the healthcare situation in America. No doubt those projects would not solve all of the problems. But then neither does Obamacare. By a long shot.

The problem is, Obamacare not only doesn’t do what it claimed it would do, which was to let everyone who was satisfied with their plans keep them while providing affordable insurance for all those who couldn’t get it, but it has failed in its most basic goals. Millions have lost their health insurance, millions more have seen their hours cut, if they can find a jobs in the first place, premiums are skyrocketing for tens of millions of people and the infrastructure upon which the program rests is a failure of epic proportions.

What’s worse, if that’s even possible, is that Obamacare inserts government bureaucracy and ineptitude and failure directly into the most personal lives of every American. Not only that, the regulations that Obamacare generated (fully 30 times longer than the legislation itself) are nothing but tools with which bureaucrats can provide favors for friends or punish enemies.

At the end of the day, we probably should ask ourselves: “How the hell did we get here?” The answer is actually pretty simple: It’s the 1-2-3 recipe of Liberalism. 1) Take an anecdotal problem that, while troubling, is limited in scope, and project it on the larger population. 2) Propose an overarching government solution that will solve said problem while not harming the rest of the population. 3) Implement a bureaucratic nightmare that not only fails to solve the problem but generally makes the situation exponentially worse.

Such is the history of progressive government. Welfare. Poverty. Mortgages. School bussing. Education – at all levels… Failed programs, over and over again. And now we have Obamacare, where a healthcare system that was meeting the needs of 90% of the American population will be transmogrified into something that meets the needs of far fewer, all while imposing financial and regulatory hardships on hundreds of millions of Americans.  

At what point will Americans figure out that these failures do not happen on their own but rather they are the scripted outcome of a Greek tragedy called Liberalism? By now the audience should know the outcome of the story… Big government doesn’t solve problems. It simply takes bad situations and makes them worse. Perhaps the spectacular failure of Obamacare and everything associated with it will be the wakeup call Americans need to see that for all of its beguiling charm and compassionate language, liberalism is nothing more than a siren’s song, promising an island paradise in a sea of human misery. Not only is there no island, nor paradise, but the waters are filled with jagged rocks which invariably destroy every ship whose folly brings it too close.  If we’re lucky Obamacare will be that rare Greek play where the protagonist learns from his mistakes and changes course before his ship is impaled on the rocks…

Why the shutdown scares the petty vindictive little man Barack Obama

Despite the fact that the average federal employee earns $123,000 (2010 numbers) in salary and benefits while the average private sector employee earns $61,000, my sympathy goes out to those who have found themselves on the sidelines because of Barack Obama and Harry Reid’s shutdown. Despite the fact that they will likely get all of their backpay and perhaps a bit more, it’s always difficult to see people have their finances thrown into chaos. Nonetheless, big government is a cancer on productivity, and while a million federal employees are feeling the pinch of this impasse, tens of millions of Americans are feeling the pinch of no jobs, reduced hours and losing their healthcare because of big government and ObamaCare. Viva la shutdown!

The old saying goes: “Sometimes you have to break some eggs in order to make an omelet.” In this case a more appropriate characterization might be “Sometimes you have to break some eggs in order to put on a banquet.” Given that federal regulations are so costly to American businesses – and consequently to Americans themselves – the extended furlough or firing of the apparatchiks employed to enforce government regulations would allow for a resurgence of economic activity, leading to a return of American prosperity. According to the Competitive Enterprise Institute, federal regulations will cost Americans $1.8 Trillion this year or about $14,000 per household. How would you like to have an extra $14,000 per year to spend? Well, let’s be generous and suggest that 25% of the government’s regulations are both Constitutional and worthwhile. That would mean that the bonus would only be $11,500 per year. How much of a jolt do you think you could give your community if you and every one of your neighbors had an additional $1,000 a month to spend? I guarantee you it’s a lot more than an omelet.

This shutdown is 100% owned, lock, stock and barrel by Barack Obama and the Democrats. As wasteful as most of the government spending is, the House passed a bill that would fund every single piece of it other than Obamacare. The Senate rejected that and the President promised to veto it if it made it to his desk. They can whine as much as they want about obstructionism, but the fact is that they can have everything they want other than something that a majority of Americans don’t want. Cry as they might, the spilled milk has their fingerprints all over the bottle.

Barack Obama is a petty, spiteful, vindictive little man. In order to make sure that Americans knew the shutdown was going on – because most probably wouldn’t notice as they have lives and are not part of the Democrat / Big Government / Mainstream Media Industrial Complex in the first place – Barack Obama chose to inflict the greatest amount of pain possible. If you’ve never been to Washington to see the WWII monument, it’s a beautiful, spacious open air monument with marble pillars, arches and fountains which is accessible 24 hours a day. You don’t need to buy a ticket to see it, there’s nothing for anyone to do to make sure you can enjoy it, all you have to do is just walk across 17th St. from the Washington Monument and you’re there. You just walk around, that’s it. Barack Obama decided to actually spend money to put up barricades so that you could not visit it during the shutdown. When veterans who actually fought in WWII came to see it and ignored his barricades, he spent more money to have the barricades tethered together and then employed horse mounted Rangers there to ensure that the heroes could not visit the monument to THEM! (Until the veterans announced their visits were protected 1st Amendment activities...) What’s worse, according to one Park Ranger: “We’ve been told to make life as difficult for people as we can. It’s disgusting.” If that were not enough, at the same time he threatened to arrest supplemental Catholic priests if they volunteered their time to conduct Mass for military personnel who have no priests available to them. He had police kick veterans and visitors off the Vietnam Memorial, which is literally an open air wall and a walkway dug into the ground. He even tried to close the ocean down in Florida. But if he wants to play golf the course on Andrew’s Air Force Base is open.

Like most things in Washington, words don’t always mean what they actually mean. A shutdown in plain English means that something is frozen, stopped, not functioning. In Washington parlance however, shutdown means that 83% of the budget is still being spent. So the shutdown which President Obama and the rest of the lefties are denouncing really only equates to 17% of the federal government, or about exactly what the government spent just a few short years ago.

Ronald Reagan endured half a dozen shutdowns at the hands of the stridently partisan Tip O’Neill and the world did not come to an end. It won’t end now either. This shutdown will not bring about Armageddon any more than sequester did. What it might do however is focus American’s attention on the fact that the nanny state is not as important as those in Washington would like us to believe. Many Americans might be surprised to discover that not only does the sun continue to rise during the shutdown, but the neighborhood supermarket still opens, cable TV is still on the air and their cars still run. Frankly, that’s a danger for Barack Obama and big government types of all stripes, because once Americans rediscover that they can survive without big government they just might start pushing back. And when they start the bell will soon begin to toll for much of what government has appropriated for itself over the last half century... and with it will go the confiscatory taxes that have made that encroachment possible. As such, don’t be surprised to see Obama and Co. continue to look for new ways to inflict pain on the American people. The question is, will the squishes in the GOP be able to stomach the fight long enough for Americans to come to the realization that they don’t need a nanny state to hold their hands from cradle to grave? Let’s hope they do.

From Obamacare to Immigration "reform" Is Anyone in Washington Smarter Than a 5th Grader?

The Wall Street Journal had a rather heartbreaking piece a few weeks about families of people with mental illness. Many families seem to feel helpless in the face of federal privacy laws that keep parents from knowing about their grown children’s medicines, treatments and even diagnoses. While parents are often able to be involved in the treatment of their children as they grow up, once they reach maturity the parents are often locked out. The same is often true for families of those who become mentally ill later in life.

Laws that are meant to protect individual privacy often limit families and professionals from helping the mentally ill until it is too late and they end up harming themselves or others. Somewhere between One Flew Over the Cuckoo's Nest, the road leading up to HIPAA and Jared Loughner opening fire in Tuscon, AZ, the common sense of regulations seems to have gone out the door . As a result, society and the mentally ill have been paying the price ever since. Mental illness is certainly one of the most difficult issues a family and a community can face, and federal laws that obstruct common sense solutions do nothing but to complicate the challenges.

Which is exactly why every time the federal government seeks to do anything it should be looked at with great deal of skepticism. Because it’s not just the treatment of the mentally ill that the government messes up. The majority of the things the federal government does are failures, and most certainly lack common sense. Take for example President Obama’s EEOC (Equal Employment Opportunity Commission) which has sued Dollar General and BMW for racial discrimination. Their crime? Screening out of their potential employee pool applicants who had been convicted of "Murder, Assault, Battery, Rape, Child Abuse, Spousal Abuse (Domestic Violence), Manufacturing of Drugs, Distribution of Drugs, [and] Weapons Violations." And since more blacks than whites were convicted of those crimes – and therefore dismissed from consideration for employment – Dollar General and BMW are guilty of racial discrimination.

If there were an entry in the dictionary under “lacking common sense” this action would be example number one with a picture of a smiling federal bureaucrat next to it. Even a fifth grader would understand that forcing a company to consider more convicted murders and rapists for employment simply because of their race is ridiculous.

But then most of the people in Washington would likely end up losers on Are You Smarter than a 5th Grader? One can only imagine that 5th graders would have been smart enough not to give us Obamacare. One doesn’t need to be a genius to figure out that Obamacare was going to be a disaster from the beginning, but of course we had to pass it before we could find out what was in it. The dunces in Washington promised that insurance premiums would go down. Instead they’re going up. The dunces in Washington said if you like your insurance you can keep it. Millions of people are finding they can’t. And of course the dunces in Washington were sure that access to government guaranteed healthcare would improve health outcomes. A landmark study in Oregon puts that lie to rest.

Now the dunces in Washington are trying to sell the American people another thousand page bill of goods that goes against basic common sense. This time in the form of the immigration bill. They claim that rewarding 11 million illegal immigrants in the country will somehow stop people from coming across our borders. So giving a gift to those who came to the US illegally (just as happened in 1986) is supposed to show that the US is finally serious about closing down the border? The CBO is not so sure.

They claim that giving the 11 million people here illegally some legal status should benefit the country because they will pay taxes. Actually, according to the IRS, many of them are already paying taxes thanks to individual Taxpayer Identification Numbers (ITINs). Not only that, the IRS is actually sending thousands of “aliens living in the United States who are ‘not authorized to work in the United States.’” tens of millions of dollars in fraudulent refunds, 24,000 of whom apparently live in one house in Atlanta. Talk about close quarters!

They claim that they are absolutely, really, totally promise to secure the border this time… Ted Cruz points out that we heard this before.

Common sense tells you that if illegal immigration is to be tackled, the first thing you do, as you would with a sinking ship, is fix the holes rather than rearrange the furniture or dance cards. But then the people in Washington are not well versed in that basic element of everyday life that most citizens (including 5th graders) employ to get through their days. Unlike bureaucrats, most citizens don’t have the luxury of changing the rules to fit their worldviews, regardless of the consequences. No, they have to deal with actual reality rather than the fairy tales of good and effective government that politicians and bureaucrats tell themselves.

Unfortunately, whether regular citizens have family members with mental illness, are simply seeking to run a successful small business or have any one of a thousand other everyday issues to deal with, in almost all every case they will find that beyond the normal complexities of life they will likely have to deal with a plethora of decidedly non common sensical intrusions by the dunces in Washington who fancy themselves as sages and kings.

Big Business + Government... Why Wall Street records don't mean happy days are here again...

On Friday, the stock market, driven by record profits and a better than expected jobs report, - not to be confused with a good one - closed at its all time record high. Closing at 1,614, the S&P 500 closed up 148% from the low it reached in 2009. Not bad given that the economy is up a paltry 5.5% over that same period. Already the markets are up over 10% since the beginning of the year. There are a number of reasons for this.

One is the fact that the 500 companies represented the index have been reporting strong revenue and earnings growth, particularly among technology companies like Apple, Google and Facebook. Another factor is that the Fed’s money pump. The Federal Reserve has been pumping $85 billion a month into the economy since the beginning of the year, doubling the $40 billion a month it had been pumping in since 2010. By the Fed driving bond rates to close to zero, the stock market is the natural beneficiary of the dearth of competitive returns. Where else are investors going to put their money?

Then there is the economy. Last week the government announced that the unemployment rate had dropped 7.5% in March, down from a high of 10% in October of 2009.  Those jobs numbers sound great, until you look a little closer. The primary reason the rate is down 25% in 4 years is not because of job growth, but rather because so many people have grown discouraged that they have stopped looking for a job all together. Basically, since Barack Obama became president, 9.5 million Americans have simply left the workforce and as such are simply no longer counted. Had those people still been looking for a job - U-5, the rate would be 8.9%, which might not be such good news for stocks.

The reality is that while the stock market may be going gangbusters, the country as a whole is a different story. The simple reason is the stock markets, by definition, reflect the fortunes of big businesses. Currently, for a company to be listed in the S&P 500 it must have a market capitalization of at least $4 billion. That leaves out 99.9 percent of all companies in the United States, including the jobs engine: Small businesses. Small businesses create 64% of all new jobs, employ tens of millions of people and are the places from which large successful businesses emerge.

Basically Wall Street is heading for the stars while Main Street limps along. This is no accident. Two pieces of legislation clearly demonstrate the problem. The first is Obamacare. In 2009 it was passed despite the fact that a majority of Americans never favored it. How? Collaboration between the Democrat party and big business advocacy. Companies as diverse as General Motors, Wal-Mart and Pfizer pushed for the passage of the sainted Obamacare because they understood that the legislation would create a significant benefits for them. In many cases big companies like Wal-Mart understood that they could unload some of their costs on the public, or more importantly, they could saddle small business competitors with healthcare costs they could not afford. As competition dried up, up would go their revenue and profits…

Just as expected, Obamacare has resulted in small businesses hiring fewer workers or hiring more employees on a part time basis to keep below Obamacare’s 50 employee threshold. The most recent jobs report shows this shift to part time workers. The April report showed that the average workweek per employee in the US dropped by .2 hours. That is the equivalent of firing over 700,000 people. That larger number of workers working fewer hours means that small businesses are saddled with greater accounting, training and management costs while simply seeking to maintain their current productivity levels.

The second piece of legislation that showcases the big business / government cabal is the Internet Sales Tax bill, euphemistically called “The Marketplace Fairness Act”. The legislation would force online retailers to collect sales taxes for every taxing authority in the country whether they have a presence there or not. Simply put, state and local governments cannot live within their means and seek to squeeze every dollar they can from largely defenseless small businesses. Big businesses meanwhile seek to kneecap potential competitors by foisting upon them regulatory compliance costs they simply can’t afford. A small business doing $1.5 million a year selling backpacks or tee shirts will typically not be able to keep up with the 9600 different taxing authorities that exist around the country. Although the legislation requires each state provide one clearinghouse for tax collection within its domain, it will still leave small businesses open to legal jeopardy from each of the 9600 local taxing authorities.

Here’s just one example. Have you ever looked at your grocery store receipt and noticed some items have a T beside them while others don’t? The ones with the T next to them are taxable and the others are exempt. Some jurisdictions tax staples like milk and eggs while others don’t – and each is constantly shifting the rules. Some communities exempt some forms of chocolate while exempting others. How is a small business selling gift cheese from Wisconsin supposed to understand if it’s fine cheeses count as untaxed staples or taxed luxuries in 9600 different jurisdictions with 9600 different sets of rules? If complying with that law sounds daunting, it is, and that is exactly why many big businesses, including Amazon.com are supporting it: Less competition = more profits.

At the end of the day this stock market bonanza should not be seen as a sign of a robust economic revival. Unfortunately it’s more like a pig wearing lipstick. It’s the result of governments who refuse to live within their means conspiring with big businesses who seek to eliminate competition. The hapless saps caught in the middle are the American worker, who has fewer employment opportunities, and the nascent entrepreneur who finds that maintaining or starting a business is simply becoming unsustainable or impossible. We expect that from government, but it’s a sad day in America when two shining beacons of free market success like Wal-Mart and Amazon embrace the antithesis of free markets – regulation – in order to undermine the opportunity for other entrepreneurs to enjoy that same success they achieved.