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The Ideals of the 4th of July

  

Here's a perfect thing to get for the 4th of July holiday: my book We Hold These Truths. It's about the Declaration of Independence and how leaders have appealed to its ideals throughout our history. Get it for your family, your friends, your enemies (maybe they'll become your friends). Shameless plug, but what can I say the Fourth is my favorite secular holiday, and I like the author's take on the subject:

Two central beliefs in the Declaration of Independence have greatly shaped the United States and formed it into a country that is a beacon of liberty throughout the world. The first influential belief is that there is a providential God Who presides over the affairs of this world, and the second is that God has granted man inalienable rights. Leaders like Thomas Jefferson, George Washington, Abraham Lincoln, Frederick Douglass, Franklin Roosevelt, and Dwight Eisenhower have appealed to these beliefs during some of the nation's most trying and defining moments, including the Revolutionary War, the Civil War, and World War II. Unfortunately, these founding and sustaining visions are in danger of being lost today as indicated by the polarization over basic issues like the definitions of life and marriage. We Hold These Truths calls us to look back to the nation's foundational beliefs to regain vision for our day. 

Here are some key portions of the Declaration of Independence:

"When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation."  Contained in this first paragraph is the belief that God has set up certain ageless laws over all His Creation, "the Laws of Nature and of Nature's God."  The second paragraph now states, more specifically, the rights that are derived from those laws, and it's the most recognized portion of the Declaration:

"We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed..."

The Declaration next lays out the grievances including among others: murdering colonists with impunity, shelling and burning coastal communities to the ground, disbanding local governments, levying taxes with no representation in Parliament, occupying Boston and imposing martial law, taking colonists captive and impressing them into military service, and charging colonists with crimes and shipping them back to England to be judged by people who were not their peers.

The Declaration closes stating a belief in the justice of the American cause and a belief in just God who would help them in the fight. 

We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the name, and by the authority of the good people of these colonies, solemnly publish and declare, that these united colonies are, and of right ought to be free and independent states;...And for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor.  

May this 4th of July remind us all once again that our most basic rights come from God and that He, in His Providence, still governs over the affairs of this world. 
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North Korea: Was Gen. MacArthur Prophetic?

  
   

"In war there is no substitute for victory."
General Douglas MacArthur – Speech to a Joint Session of Congress, 1951 

This week marks the 59th Anniversary of the beginning of the Korean War, and the rhetoric coming out of North Korea is enough to get anyone’s attention.  During these last few days, Kim Jong-il’s regime has threatened to wipe the United States from the globe if it seeks to enforce the UN sanctions blocking proliferation of the communist nation’s nuclear weapons. The regime followed this threat with the promise of raining a “fire shower of nuclear retaliation” if we take any form of military action against it.  Such belligerent statements by North Korea make General Douglas MacArthur warning regarding the dangers of appeasement offered during the Korean War appear extremely prophetic. 

In June of 1950, when the North launched its attack against South Korea, President Harry Truman responded by sending American troops to fight with the South.  All looked lost when the North’s forces surrounded the Americans and South Koreans on three sides with their backs to the sea centered around southeastern port city of Pusan.  General Douglas MacArthur, the World War II hero and newly named commander, conceived a plan to conduct a bold amphibious landing further up the peninsula behind the North Korean lines, thereby placing the enemy forces in a pincer between Allied units in both directions.  The plan worked masterfully, causing the North Korean forces to fall into full retreat.  The Allies managed to push what was left of the Korean Army north of the original border and kept on rolling. The goal was no longer to leave the Korean peninsula divided, as it had been prior to the conflict, but united as one country.   

China did not approve of this plan and responded by sending a force of over 1 million soldiers to the aid of the North Koreans.  They pushed the Allies back below the previous border between North and South.  In order to fight this new war MacArthur requested permission to: 1) bomb the Chinese Army’s staging areas north of the Korean border; 2) implement a naval blockade of China’s coast; and 3) allow the millions of exiled Chinese, living in present day Taiwan, to join on the Allied side.  President Truman, not wanting to widen the war, refused all three requests.  MacArthur came to quickly realize there was going to be no way for complete victory in the Korean War if all means of denying the enemy reinforcements and supplies were not going to be used.  In frustration, MacArthur began to publicly state what he believed was necessary to win and those pronouncements stood in direct opposition to President Truman’s plans to limit the fighting to the Korean peninsula.  When MacArthur persisted, Truman relieved him of his command. 

MacArthur returned to the United States to a hero's welcome with massive tickertape parades, as well as a request to speak to a joint session of Congress. The General took the occasion to warn the members of Congress and the country of the perils of not fighting the Korean War to win it.  He said, "There are some who, for varying reasons, would appease Red China. They are blind to history’s clear lesson, for history teaches with unmistakable emphasis that appeasement but begets new and bloodier war. It points to no single instance where this end has justified that means, where appeasement has led to more than a sham peace.” The examples of the truce ending World War I, where 15 million died begetting another war with Germany leading to three times that number dying and, in more recent times, the Gulf Wars I and II bear out the General’s observation. MacArthur added leaving the aggressor in power ultimately, “Like blackmail…lays the basis for new and successively greater demands until, as in blackmail, violence becomes the only alternative.”


 

The President and the Congress did not follow General MacArthur’s advice in 1951. The Korean War ended in 1953 with an armistice leaving the aggressor Kim Song-il’s father, the dictator Kim Il-Jong, in power.  North Korea and China signed the truce, but the underlying issue leading to the war (the North's intention to make the entire peninsula a communist state) was never resolved.  As MacArthur predicted, the aggressor nation has employed blackmail tactics throughout the years to tune of tens of billions of dollars in aid being paid by South Korea, Japan and the United States. Despite all of it, the North has issued its most provocative threats to date, and conducted unsanctioned nuclear bomb and missile tests, which if allowed to continue, will place Hawaii, Alaska and the West Coast in peril very soon. China appears content to wait on the sidelines and let crisis play out. The use of U.S. military strikes is rapidly becoming our only alternative. 
 
Fifty-eight years have passed since General MacArthur predicted the cost of leaving the North Korean regime in place. Short of some radical change in policy, North Korea will have to be opposed by force. We are left to pray that somehow history’s lesson can be circumvented and a full-scale war will not result.   

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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to beliefs found in the Declaration of Independence, throughout our nation's history. 

     
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Yes on 8 - The Update - Same-Sex Marriage

The rule of law prevailed this week in California. The state Supreme Court ruled 6-1 that the people can amend their constitution to define marriage as between a man and a woman.    California was only joining twenty-nine other states and the federal government, which have passed legislation strengthening the legal protection of the traditional definition of marriage.
 

Those opposing Proposition 8 had a strange argument to make indeed: “The state constitution is unconstitutional.” Chief Justice Ronald George, writing for the majority, laid out the case plainly: "In a sense, petitioners' and the Attorney General's complaint [opposing Proposition 8] is that it is just too easy to amend the California Constitution through the initiative process, but it is not a proper function of this court to curtail that process; we are constitutionally bound to uphold it." 

What a refreshing statement regarding the proper role of judges in this day when far too many are willing to engage in strained legal interpretations or to outright ignore the law if the outcome is not to their liking.  Such was the case last May when the same Court ruled in a 4-3 decision that the California Constitution required the state to recognize same-sex marriages. The reasoning employed was: 1) The ability to marry is a fundamental right. 2) Some people would prefer to marry someone of the same sex. 3) Therefore same sex couples have the right to marry. The only problem with the reasoning was that the fundamental right to marry has always been defined and understood to be between a man and a woman. In fact in 2000, the people of California passed a ballot initiative specifically defining marriage as between a man and a woman, so there would be no confusion. When the CA Supreme Court struck down this measure last May, those in favor of traditional marriage had already begun the more difficult task of passing a constitutional amendment.  They succeeded in November, and the Court has now rightly recognized their right to do so. 
  

However, now comes the next challenge to Proposition 8 and all state measures defining marriage as between a man and a woman; this time under the United States Constitution in federal court.  It's almost like the end of the second sequel to the Lord of the Rings Trilogy when Gandalf announces that the Battle of Helm's Deep has been won but the battle for Middle Earth is about to begin.  High powered opposing counsels in Bush v. Gore (2000)--Ted Olson and David Boies--have joined forces and taken up the cause of striking down Proposition 8.  If their case goes to United States Supreme Court, which is likely will, and they succeed, it will have the effect of mandating same-sex marriage nationwide.  Their complaint to federal court states, “It is impossible to reconcile the restrictions that Prop. 8 imposes on the right of gay men and lesbians to marry with the U.S. Supreme Court’s conclusion that the Fourteenth Amendment protects the right of all citizens to make personal decisions about marriage without unwarranted state intrusion.” 

The United States Supreme Court has not actually said that or otherwise all state laws defining marriage as it's always been understood would already be unconstitutional. In Lawrence v. Texas (2003), the Court did strike down a state sodomy law, finding it to be an unconstitutional intrusion into peoples' sexual lives.  Lawrence actually overruled another Supreme Court decision issued only seventeen years before in Bowers v. Hardwick (1986) that stated the Constitution was silent on the matter so states were free to pass or repeal laws addressing the practice.  Though all states once had anti-sodomy laws even by the time of Bowers in 1986 the majority did not and by the time of Lawrence less than ten did. 

Justice Antonin Scalia pointed in his dissent in Lawrence that state governments pass laws addressing peoples' private sexual lives all the time including anti-polygamy laws, incest laws, child molestation laws, laws against prostitution, to name some.  To say people have a newly discovered, fundamental right to make their own private sexual choices without state intrusion would negate all these laws.  He further predicted that state courts would take this new found Constitutional right to sexual identity and use it justify striking down state laws that define marriage as only being between a man and a woman.  Four months later, the state of Massachusetts did just that.  Others followed including Iowa and California (hence the Proposition 8 amendment in response).       

 

Six years after Lawrence the pieces are now in place.  Will the United States Supreme Court pull another Dred Scott (which struck down laws throughout the United States restricting the growth of slavery) and impose its will on all the United States regarding same-sex marriage or will government of, by, and for the people be the touchstone of the American political experience?  We will all have to wait and see. 

  
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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs in God's Providence and inalienable rights throughout our nation's history.       
 
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U.S. President - Wyatt Earp or Ed Masterson?

 
April 27, 2009                                                  Jason McLane/AP

During these last few days, New York City and the nation's capital experienced some 9-11 déjà vu moments.  In New York, a 747 belonging to the Air Force flew at an extremely low altitude circling around the southern tip of Manhattan with an F-16 fighter jet trailing close behind, sending people on the ground scrambling in panic.  And in Washington, an airplane accidentally flew into restricted airspace, which caused the evacuation of the Capitol building, a lockdown of the White House, and President Obama's relocation to a more secure location. These conspicuous reminders of 9-11 come on the heels of the President’s decision to release of Top Secret memos detailing the interrogation techniques used by the Bush Administration following the 2001 Al Qaeda attacks. If policymakers are wise, they will take a moment to reflect on 9-11 and consider the sober charge the Commander-in-Chief bears to keep the nation safe and the means he may need to achieve that end.
 
Our two previous Presidents employed different approaches to the terrorist threat posed by Al Qaeda and others: President Bush viewed the conflict as a war, while President Clinton saw it more as a law enforcement issue. I wrote an article in 2006--while Democratic criticism of the means Bush chose reached a fevered pitch--in which I likened the two approaches to two characters from the movie Wyatt Earp (Warner Bros. 1994): Bush to the aggressive, stern Earp, willing to preemptively strike when violence appears imminent; Clinton to the affable Dodge City Sheriff Ed Masterson, more inclined not to use force to bring about compliance to the law. 

Early in the movie, Earp learns that there are certain types of hardened, violent men who will not back down, who only understand force. While his family is moving West, a teenage Wyatt heads into a frontier town for supplies, where he witnesses two men brutally gun each other down in broad daylight. He's shocked and sickened by the harsh scene.  Later that night Wyatt’s father, a lawyer (and a Justice of the Peace at some points in real life), played by Gene Hackman, checks in on his son at their campsite. “How you doing Wyatt?”, the elder Earp asks.  "I'm okay Pa," Wyatt replies.  His father continues, “You know I'm a man that believes in the law… But there are plenty of men who don't care about the law. Men who'll take part in all kinds of viciousness and don't care who gets hurt. In fact, the more they get hurt, the better. When you find yourself in a fight with such viciousness...hit first if you can. And when you do hit, hit to kill. You'll know. Don't worry. You'll know when it comes to that.” 

Wyatt (now a grown man played by Kevin Costner) puts his father’s advice into practice as a sheriff in Dodge City, Kansas. He’s a deliberate man, not given to much introspection or overly concerned about what others think of his techniques of keeping the peace. For example, the Sheriff’s not afraid to pistol-whip someone upon the first sign of resistance. By contrast, Ed Masterson, a new deputy in Dodge City, prefers to use his innate ability to get along with people to convince them to make good choices. Wyatt identifies the problem early during Ed's first confrontation with a couple of armed cowboys, who’ve obviosuly been drinking. Ed and another deputy stop the men and inform them that there is a law against carrying firearms in Dodge City (which is clearly posted at the town's entrance, so the cowboys probably already knew they were in the wrong).  Wyatt watches from nearby. One of the cowboy challenges Masterson,  “Says who?”  The deputy responds, “Says the law, that’s who,” but Wyatt has already heard enough. He comes up from behind and pistol-whips both cowboys, knocking them to the ground and yells with exasperation at Ed, “You talk too much!” “You didn’t have to do that Wyatt,” Ed responds. Wyatt takes the cowboys’ holstered guns away and then searches them, finding one had a small pistol concealed in his hand ready to be fired. Ed looks at the pistol, “Well, I’ll be a son-of-a-b----.” 

Later that night, Earp gives his new deputy some advice, “If I were you, I'd look for another line of work. Politics, maybe…You could get killed in this line of work, Ed. You could get people around you killed. This is a harsh land, Ed. It doesn't suffer fools."  "I'm not a fool, Wyatt," Masterson responds.  "No, you're not. But you're not a deliberate man, Ed. I don't sense that about you. You’re too affable.”  The townspeople, however, don't see it Wyatt's way: they prefer Masterson's congenial style and make him sheriff and send Earp packing to Texas. Unfortunately, Wyatt’s concerns about Ed prove accurate. The Sheriff has an encounter, much like the one Wyatt witnessed, but this time Masterson ends up dead. Dodge City sinks into lawlessness, and its leaders send an urgent telegram to Wyatt in Texas begging him to return.
 
 
Lamentably, President Clinton, by in large, employed the Ed Masterson approach in his dealings with Al Qaeda throughout his time in office. That group declared war on the United States back in the early 90’s and committed acts of war throughout that decade, starting with the bombing the World Trade Center in 1993, a little over a month into his Presidency. Six people died. Rather than meeting force with force, Clinton’s response was to open a criminal investigation, which resulted in some convictions a year later. Seven months after the World Trade Center attack, Al Qaeda trained forces ambushed of U.S. Army Rangers in Mogadishu, Somalia killing 18 Americans and dragging some of their mutilated bodies through the streets. Eighty-three other soldiers were injured in the gunfight. The United States responded by pulling out of Somalia.  Then in 1998, Al Qaeda simultaneously bombed two United States’ embassies in Africa (Kenya and Tanzania) killing hundreds and wounding thousands more. The United States responded with some inconsequential cruise missile strikes in Sudan and Afghanistan. Finally in 2000, the last year of the Clinton Presidency, Al Qaeda bombed the U.S.S. Cole off the coast of Yemen, seeking to blast it out of the water and succeeding in greatly damaging the ship and killing 17 Navy crewmen, while injuring 39 others. 
 
Despite the repeated acts of war, the Clinton Administration chose not to take the fight to Al Qaeda. His law enforcement approach to the conflict meant all the rules of law, not war, applied including presumption of innocence, restrictions on evidence that can presented at trial, and the difficult (often impossible) task of bringing the accused and witnesses and other evidence from overseas to the United States.  Meanwhile, Al Qaeda continued to grow and plot and carry out attacks against the United States unmolested during Clinton's time in office.  The President even had the opportunity to kill or capture Osama Bin Laden in 2000, but apparently allowed legal and political concerns to let him slip away. 
 
George Bush, in contrast, following the 9-11 attacks, took a Wyatt Earp approach to dealing with Al Qaeda.  He had gone to the smoldering Ground Zero and the Pentagon, while the smell of burnt flesh was still in the air; he had visited with and sought to console many of the thousands who lost loved ones that day and determined that he would do his part in preventing another such attack from ever happening again on American soil. Bush deployed the military throughout the world to go after Al Qaeda and take away their safe havens. One early victory came in in Afghanistan in November 2001, when U.S. intelligence pinpointed Mohammed Atef's, location--the leader of the Al Qaeda attacks against the United State embassies in 1998--and directed air strikes to take him out.  The U.S. military, the CIA and our allies also captured Al Qaeda leaders around the globe.  Some of these were submitted to harsh interrogation in order to determine if other attacks against the United States were imminent and learn more about the organization’s structure and bases of operation. One of those captured leaders was Abu Zubaydah. He was in charge of a thwarted plot to hit Los Angeles' Liberty Tower in a 9-11 style attack using terrorists from the Far East. He is also believed to have run the training camps in Afghanistan where some of the 9-11 hijackers trained. While being interrogated, Zubaydah revealed information that led to the capture of Khalid Sheikh Mohammed (KSM)--the Mastermind of 9-11--in Pakistan in early 2003.  KSM recruited for, helped bankroll and oversaw the 9-11 attacks as well as the first attack on the World Trade Center in 1993. Further, as was already suspected, KSM admitted to (even boasted about) personally decapitating American journalist Daniel Pearl. Al Qaeda filmed the gruesome act and posted it online. KSM, at first, resisted efforts to divulge anything about Al Qaeda’s structure and future plans, only saying "You will know soon,":  after being water-boarded, he revealed a lot of actionable intelligence, which the United States used to further break up Al Qaeda’s organization. The last three CIA Directors all stated valuable information in fighting the War on Terror came from harsh interrogation. That the United States has not been struck again since 9-11 says much about George Bush's Wyatt Earp strategy.

Barack Obama appears, so far, to be more of the Ed Masterson mold. Though he decided to keep key members of the Bush military team on including Defense Secretary Gates and General Petreaus, he informed them that we were no longer fighting the War on Terror, but were now engaged in overseas contingency operations. He further decided to release the Top Secret memos detailing the harsh interrogation techniques used by the Bush Administration, thus allowing our enemies to know how to train to resist American interrogators. Obama also opened the door to the prosecution of those established the guidance for the program (in a flagrant flip-flop from his earlier stated position), apparently unconcerned about what affect that may have on CIA agents as they wonder if they too could be subject to criminal prosecution.

President Obama's more friendly approach to our enemies is not limited to fighting what was previously known as the War on Terror.  He stated during his campaign and now again as President that he's willing to meet with the Iranian regime without any preconditions regarding their nuclear weapons program or requiring Iran to renounce their intention "to wipe Israel off the map." Additionally, North Korea launched a long-range missile right over Japan, and the United States barely even responded.  Incredulously, given the launch, the President announced plans to scale back our anti-ballistic shield program. Further, he glad-handed with Venezuelan "President" Hugo Chavez last week, even though the dictator regularly spews hatred against America and is actively creating an anti-American alliance in the hemisphere.  Chavez has also befriended Iranian madman President Mahmoud Ahmadinejad and recently hosted joint military exercises with Russia.  Obama's style in dealing with all these men is very much in the Ed Masterson vane. Displaying such weakness in the face of thugs like Chavez (which is how even Nancy Pelosi described him) only invites their scorn and, in all likelihood, their future aggression. 


 

John Kennedy learned this lesson in spades following his Vienna Summit with Soviet Premier Nikita Khrushchev in the spring of 1961. Kennedy, like Obama, was trying to make a break with his predecessor (Eisenhower) and present a more friendly face to the Soviets. Khrushchev sized up the new President and decided he was weak. A little over two months later the Soviets began building the Berlin Wall, and within a year they were moving nuclear missiles into Cuba, precipitating the Crisis in the fall of 1962.  Most historians see a direct link between Kennedy's performance at Vienna and the crises that followed, which brought the world to the brink of war and even nuclear Armageddon. (See NY Times article re the Summit).

In the end, the times dictate the type of President the United States requires, but it's almost always going to be a combination of a Wyatt Earp and an Ed Masterson.  One can say Bush was too tough, but he clearly understood the kind of vicious men who care nothing about the law or human life, and he wanted to protect the United States from them.  Obama, like Masterson, puts great credence in his personal charm and his ability to guide people to the right choice.  So far it's had no effect on our enemies' actions including Iran and North Korea or deterred Russia or China from becoming increasing more aggressive towards the United States.  Wyatt's warning to Ed Masterson seems just as relevant: it is a harsh time and "and it doesn't suffer fools," even well intentioned, affable ones.

                                                        
 
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 Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs found in the Declaration of Independence, throughout our nation's history.          
 
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Remembering "The Forgotten Man"


Economist Amity Shlaes argues in her bestselling book The Forgotten Man, a history of the Great Depression, that one person not factored into the equation in the New Deal long term entitlement programs begun under Franklin Roosevelt was the person paying for the benefits received by another. Barack Obama has not factored this person in either, but the American public is beginning to bring "The Forgotten Man" to his attention, as exemplified by the recent massive Tea Party demonstrations throughout the country. 

Shlaes writes that “The “Forgotten Man” equation is really quite simple. Say a person named Al has an idea for a government program that could make Doug’s life better. He then convinces Betty of the merit of his plan and together they’re able to gather enough support within Congress to pass a law granting Doug an entitlement for college tuition money if he does a year of community service (Barack Obama just signed a $5.7 billion bill this week, which does exactly that). One person not consulted, but whose life will be greatly affected by this decision is Charlie, the loyal taxpayer already providing for himself and his family.  Maybe he already has a child in college or about to enroll or is trying to make payroll for his small business. It will take his federal taxes and likely several others to pay Doug while he is working for the federal government doing community service and then pay for his college tuition. Charlie is “The Forgotten Man.” Multiply that scenario many times over, with the entitlements already in place, and you have the makings of our current budget crisis. 

In last year’s federal budget, entitlements including Social Security, Medicare, Medicaid, Welfare and food stamps, made up over 50% of the $2.98 trillion total, as they have for several years. Medicare and Medicaid, at $682 billion accounted for nearly half of that or 23% of the total federal budget. (See Congressional Budget Office chart). The federal government ran a $455 billion deficit in 2008, and at least $1.75 trillion in 2009. Also of note was that the first wave of Baby Boomers began to retire in 2008; therefore, the entitlement problem will get exponentially worse in the upcoming years. 

Obama’s answer to this budget crisis is proposing brand new entitlement programs such as universal health care and new, vastly expanded education benefits. He’s about 40 years too late to be embarking on another Great Society or New Deal. The nation, with its $11 trillion plus debt and massive world trade deficit rather than surplus, is simply not in the same place financially. As the linked graph indicates, 8% of the total federal budget is currently being used to pay interest on the National Debt.  The budget President Obama has submitted, by his own numbers, will double the Debt. In other words, at least 16% of the total federal budget will be needed to pay the interest, to say nothing of the principal. Assuming interest rates go up, and they will have to in order to entice people to buy the vast number of Treasury notes, it’s entirely conceivable interest on the Debt will outstrip the entire outlay for the Department of Defense, which is currently 21% of the federal budget. Anyone, who’s carried significant balances on credit cards realizes how eventually an unsustainable portion of one’s pay gets gobbled up just trying to maintain the debt. Another likely result of such massive deficit spending will be inflation, which is a tax on peoples’ incomes by other means. The government prints more money to help cover its debt and thus devalues the currency, and everyone pays more for the items they want and need—it’s a tax.

For the good of the nation, Barack Obama better figure out how to become a fiscal conservative soon (if not in name, at least in action), and it’s going to take a lot more than $100 million here and there to address the problem, as he proposed this week. Obama can adopt a reform agenda and still be the hero of the hour. His mission would be to make entitlements manageable, which he has said that he wants to address. The agenda should include in part:

1. Mandatory medical savings accounts (MSAs). Current law already allows for those who are self-employed to create them as long as they’re coupled with catastrophic health insurance: expand them to all employees. They are similar to IRAs, and kept in the private sector (the government therefore is not tempted to appropriate the money as regular tax revenue, as it has done with Social Security and Medicare). Require employers to take a portion of their employees' pre-tax pay to fund the account, to perhaps a $1000 minimum with an upper limit of maybe $10,000 all tax-free. Also require all full time workers to be covered by catastrophic health care insurance with the minimum in their MSAs of enough to cover that deductible. Further require all to receive regular physical exams, based on their age and overall physical condition in order to prevent disease or catch problems early. Assuming an employee is healthy and his MSA is fully funded, none of his pay need go to the account. This system would create quite an incentive to make healthier lifestyle choices. Further such a system would greatly reduce the number of people showing up at the hospital with no money at all to pay for services provided—at a bare minimum they would have their MSA. Another likely effect would be reduced cost medical facilities springing up to serve people whose payment could now be guaranteed, at least in part, by having access to their MSAs. (I heard a version of this recommendation at a Heritage Foundation seminar, which I fleshed out a bit in conversation with others.)   

2. Medicare is the fastest growing expense to the federal government. Require some sort of means testing with co-pays at various levels, based on financial wherewithal.   (See also Isabel Sawhill's of Brookings Institute testimony before the House Budget Committee.) 
 
3. Social Security. Increase the eligibility age and create tax and benefit amount incentives for people to stay in the workforce as long as they’re willing and able to work. Make the first $75,000 earned tax free, and at a 10% rate thereafter up to $200,000.
    
If President Obama and the Democratic Congress truly wish to serve the public, including "The Forgotten Man", by addressing the United States systemic budget crisis, the above reforms are a good start; or they can choose to continue down the road of $3.5T plus budgets with $1T dollar deficits and see how far that gets them between now and the 2010 elections. Tea anyone? 
 
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 Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs found in the Declaration of Independence, throughout our nation's history.          
 
 
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Radio Interview with Gregg Jackson - We Hold These Truths

 
 
I just discovered that a radio interview that I did with Gregg Jackson last fall regarding my book, We Hold These Truths, is now available to listen to online.  The book is about how leaders have appealed to two beliefs found in the Declaration of Independence, throughout our nation's history.  The first is that God has granted man inalienable rights, and the second is that He providentially governs over the affairs of this world.  
 
Gregg and I discussed how the belief in inalienable rights has affected our laws and culture and how a loss of this belief is affecting both negatively today.  We also covered how specific events from our history strengthened peoples' faith that God still was actively involved in the affairs of this world like Lee's surrender to Grant on Palm Sunday and Lincoln's assassination on Good Friday.  Other topics include Washington's miraculous escape from Long Island early in the Revolutionary War and General Patton's order to his chaplain to issue prayer cards to his entire Third Army (250,000 in all) asking God for better weather, which happened just days before the Battle of the Bulge broke out, and what occurred next...

Scroll down to September 14, 2008 and click on "Open Lines."  My name is listed in the previous hour, but I'm actually in the 2nd.  I've contacted them about the error, so perhaps it will be fixed soon.  My book is the subject of the entire hour, so if you don't hear that topic within a few minutes, try the other hour of the same date.  (Click here for the interview site).
 
 

 
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Pelosi: Katrina/AIG - A Tale of Two Reactions

 

Nancy Pelosi’s assessment of President Bush in the days following Hurricane Katrina and hers of President Obama following the revelation of the AIG bonus debacle and his handling of the financial crisis overall offer an unobstructed view of full blown party politics.

In the immediate aftermath of Hurricane Katrina in 2005, governments at all levels were scrambling to react to the most devastating, widespread and costly natural disaster in the nation’s history.  Over 1800 people died dwarfing the totals of all recent storms of the last several decades combined. There was nearly a complete break down in state and local governmental functions in the New Orleans metropolitan area causing the federal government to step into the first responders role in an unprecedented way, which it did heroically given the circumstances. The United States Coast Guard conducted the largest search and rescue operation in its century long history rescuing over 30,000 people throughout the region, while the United States Army rolled into New Orleans two and a half days after the breach of the city’s levees and restored order to a city that had fallen into anarchy.

About a week after the storm hit, while President Bush was overseeing the largest federal response to a natural disaster in our nation's history (eventually numbering over 70,000 people), Pelosi thought it a good time to attack him and the federal efforts. She recounted a conversation that she said she had with the President, during which she told him in light of everything that had gone wrong responding to Katrina, that he should fire FEMA Director Michael Brown. According to Pelosi, Bush responded, “What didn’t go right?” She then proclaimed to reporters that President Bush was “Oblivious, in denial, dangerous.”  (quote midway through linked article). 

Give me a break. If President Bush in fact responded as she said he did, the subtext almost certainly was, “I don’t really need you telling me how to do my job and whom I should hire and fire.” The President himself knew and stated publicly during the first days of the crisis that there were problems with the response at all levels government.  He said, “A lot of people are working hard to help those who have been affected, and I want to thank the people for their efforts.  The results are not acceptable.  I'm headed down there right now.  I'm looking forward to talking to the people on the ground.”  Certainly Michael Brown had some bad moments in front of the camera, particularly in being un-informed about the plight of those at the New Orleans Convention Center. Query why the city's mayor, Ray Nagin, directed people to go there (and to the Superdome) without even a day’s supply of water on-hand or why Louisiana Governor Kathleen Blanco could not direct the Louisiana National Guard to go to those locations sooner and bring people water and other needed supplies, as they awaited evacuation. State and local governments traditionally have met these immediate needs with the federal government in the supporting role.  Bush traveled to New Orleans in the days immediately following the storm and met with Mayor Nagin and Governor Blanco and several other state, local and federal authorities. By the time Pelosi said they spoke, order had been restored to streets of the city, the U.S. Army had brought supplies into the city, and evacuations were well under way.  Doesn’t sound like President Bush who was “Oblivious, in denial and dangerous.”  

Everyone knew Pelosi's comments about Bush and the federal response were political and directed to the American people in order to score as many points as possible from the disaster. A true statesman/woman, when tempted to attack one's political opponent in the first days of a major catastrophe, should have said something like, "This is an enormous challenge.  Obviously there have been problems with the government's response at all levels.  They'll be plenty of time to determine who's responsible and what went wrong in the weeks ahead, but for now let's just do all we can help those affected by the storm."  No such words or suggestion of any failures at the state and local levels were forthcoming, because Mayor Nagin and Governor Blanco were Democrats.  The Democratic Party Pelosi led was in the minority, and she intended to use emotionally charged moment following the storm to help bring the President's popularity ratings down, and the Republican Party's with him. The plan worked. Katrina was a PR disaster for the President and his ratings took a downturn, from which he never recovered. 

Flash forward to 2009.  The Democrats did take control of Congress in 2006.  The nation is now experiencing the greatest financial upheaval since the Great Depression and now it’s President Obama who was oblivious to something he should have known about and it's his Treasury Secretary, Timothy Geither, whose competence is in question. New York Times Op-Ed columnist Frank Rich called the whole debacle Obama's “Katrina Moment.” It started with Obama telling Congress it had to rush the $800 billion Stimulus Bill to his desk by President's Day, giving members of Congress less than a day to read the 1100 page bill with its hundreds of provisions (with references to numerous other laws).  He then took five days to sign it himself.  Tucked in that bill was an executive compensation provision for those receiving government bail out funds, which exempted all pay received prior to February 11th.  Obama said he didn't know anything about it and was "Outraged."  Secretary Geithner, in turn, couldn't seem to keep his story straight. He said last week that he first learned of the $150 million plus in AIG bonuses on March 10 when some aides in the Treasury Department informed him; however, he was questioned on this very matter by on March 3 during a Congressional hearing. Therefore, he at least had knowledge of them then: he told the Congressman the prospect of such bonuses was troubling and he would look into the matter.  He didn't have to look far, because his own Department requested that language exempting bonuses paid before February 11 be included in the Stimulus Bill. Further, the Federal Reserve Bank of New York, with Geitner as its President, helped craft the original terms of the government bailout last fall, which included provision for bonuses.  Executive compensation was obviously going to be a major issue when taxpayer money was being used to keep these companies afloat. He is either being deceitful or is incompetent.  Further if Obama were truly exercising good leadership, he would not have been rushing Congress, so such a provision could be slipped in with few knowing about it.   

Where’s the outrage now from Speaker Pelosi? Why isn’t she telling President Obama that he should fire Geither, and if she has, announcing it to the public? Or calling President Obama, “Oblivious, in denial, dangerous.” The federal government has spent approximately $170 billion bailing out AIG alone and approaching $2 trillion dealing with the mortgage meltdown and financial crisis.  By contrast, Katrina recovery efforts have cost $175 billion to date.  Additionally, Obama has proposed a $3.6 trillion federal budget with massive increases in spending not only in the short term to deal with the crisis, but over the next ten years, which the Congressional Budget Office forecasts will add a $1 trillion to the national debt per year.  Obama's argument is that unless we adopt a government financed health program costing 100's of billions and increase government aid for college tuition and conduct research for alternative energy to the tune of 10's of billions more, the economy will not recover.  Funny, it was functioning quite well a year or two ago, without these massive new government programs.  Such plans are shaking the confidence of the financial sector and faith in the dollar.  Katrina only affected a region of the country directly; while the financial crisis is affecting the world. 

Rather than cutting criticism, Pelosi's observation regarding Obama is, “I believe the President is on the right path and did an excellent job in his leadership when we passed the [$800 billion] recovery act here”, with its provision protecting executive bonuses.  As for the executive bonuses she said, “It’s not right” and that the executives should give the money back or the government should use whatever means required to get it. Pelosi directs all blame to the companies rather than to the President, the Treasury and Congress (well that would include herself of course) for allowing them. 
 
The difference between Speaker Pelosi's reaction to President Bush's leadership during Katrina and Obama's during this financial crisis is of course entirely political.  The difference in reality is while President Bush was in no way "Oblivious, in denial or dangerous" when Pelosi made her pronouncement, President Obama was oblivious, by his own admission, regarding executive bonuses; and is in denial about the effects of accumulating massive government debt to the future of our republic; and therefore may well be dangerous.       

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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs in God's Providence and inalienable rights, throughout our nation's history.      
   
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Pilgrims Discovered Perils of Spreading the Wealth

 

  

Most Americans probably have at least a passing knowledge of the perils faced by the Pilgrims, especially during the first year. The difficult passage over the seas with the contrary winds, which delayed their arrival by months.  How they landed hundreds of miles north of their intended destination right at the beginning of a New England winter. How they went through a difficult winter with severe shortages of food, so that half their number died of malnutrition and disease. How the Indians helped them plant their first cornfields in the spring, and the subsequent celebration of their first Thanksgiving the following fall. What is less known is that the Pilgrims nearly starved again two years later. Their experiment in what Karl Marx would later describe as the communist goal of “from each according to his ability, to each according to his needs” failed miserably. While Barack Obama is not calling for the creation of a communist system in the United States, many of the same mal-effects of taking peoples’ hard-earned wealth and giving it to others will come into play.  

If ever there was a place and a people on earth where the Marxian ideal of “from each according to his ability, to each according to his needs” could have succeeded, it was in Plymouth colony. These were probably among the most idealistic people to be found; the crème-de-la-crème of the England’s Pilgrim sect, willing to risk it all and go across the seas to start a new life in an unsettled world. They’d put their lives in each other’s hands, confronting death through want and, at times, hostile neighboring native populations. Few live through this sort of bonding experience. Even with these bonds, the Pilgrims still possessed basic human nature, which, over time, has the unction to strive and to create and to enjoy the fruits of one’s own labor. Conversely this same human nature doesn’t like to see one’s hard work go to the benefit of another, unless it’s freely given, and especially to those who are capable of working for themselves. 

This basic aspect of human nature came into clear view in the Pilgrim's initial farming scheme. During their first year in Plymouth, they farmed as a community. Given the exigencies of their situation, with their survival in doubt, everybody pitched in and they enjoyed a good fall harvest. In effect their labor in the fields was being 100% taxed by the government, who then in turn shared the resources as it determined best: “from each according to his ability, to each according to his needs.” With the arrival of new immigrants, who had not shared the first settlers' perils or worked in the planting and harvesting and with the passing of the sense of urgency, human nature kicked in. Young, single men, for example, complained that they were having to work hard for other men’s wives and children and married woman complained about having to clean clothes and do other household work for those outside of their families. The fields were not planted and cared for at nearly the level required to support their population. Food had to be severely rationed, much as it had during their first winter. 

In response to this predicament, Governor William Bradford along with the colony’s other leadership decided to give each family its own plot of land and grouped single men in with particular families. Bradford reports that “This had very good success, for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use, and saved him a great deal of trouble, and gave far better content. The women now went willingly into the field, and took their little ones with them to set corn; which before would allege weakness and inability; whom to have compelled would have been thought great tyranny and oppression.”
 
Bradford went on to observe that no one should have been surprised at this result. It only validated what all of human history teaches regarding communal undertakings, contrary to what utopian philosophers taught. “The experience that was had in this common course and condition, tried sundry years and that amongst godly and sober men, may well evince the vanity of that conceit of Plato's and other ancients applauded by some of later times; and that the taking away of property and bringing in community into a commonwealth would make them happy and flourishing; as if they were wiser than God.” It’s what the Soviet Union learned in spades when over three million of its population died of starvation following the collectivization of their farms during the last century. It’s what parents know, who have their children work for an allowance or to earn a particular prize: people work for a reward and will work even harder for a greater reward. 
 
You do not have to full communist/100% taxing society to see the effects of taking the fruit of people’s labor from them. Barack Obama plans to grow the government massively in the areas of health care, education and energy to name three, and he plans to pay for it by raising taxes on the wealthiest, and often the most productive Americans: the people who have dared and risked and created new businesses and new technologies and thereby new jobs.  He intends to raise their federal income tax rate to 39.6% and to eliminate or reduce tax exemptions and deductions. Couple that with state and local taxes these Americans pay, which takes another 5-10% of their earnings and payroll taxes for social security and Medicare another 7.65% (15.3% if self-employed/business owner), and you’ve crossed the threshold of taking over half someone’s income to feed a government bureaucracy. He also intends to raise the capital gains tax (the tax on investment income) to 20%, when several of our competitor nations have little or no capital gains tax. Even with all these new taxes, Obama projects nearly a $2 trillion dollar deficit this year, over a trillion next year and at least a half trillion for as far as the eye can see. This is unsustainable. The result of these taxes and massive deficits will be hundred of billions less in the private sector to invest and to create and to grow businesses and to remain competitive in a world economy. 
 
The United States is at a crossroads: do we intend to go down the road of the failed philosophies of the past, which hold that government legislators and bureaucrats are the best arbiters of where the wealth in a society should go or down the road of encouraging private enterprise and individual industriousness? Governor William Bradford and the Pilgrims and societies throughout all of human history discovered the latter to be the better choice. 
 
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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to beliefs found in the Declaration of Independence, throughout our nation's history. 

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Supreme Court (9-0) says Ten Commandments Can Stand Alone

 

 
 
Lady Liberty needn't fear a Statue of Tyranny will soon be cozying up next to her any time soon in New York Harbor or that governments will be required to erect peace or war protest memorials next to those honoring war veterans. The Supreme Court, in a unanimous 9-0 decision, ruled this week that governments can choose which monuments they will display on public lands, including those with religious content like The Ten Commandments, without being forced to also display monuments from those with differing views. 

The case, Pleasant Grove City, Utah v. Summum, wound its way to the Supreme Court last fall after the Court of Appeals ruled in favor of the religious group Summum. The group sued two communities in Utah demanding that they accept and display monuments of their Seven Aphorisms next to donated monuments of The Ten Commandments currently in the towns’ public parks. Among the Seven Aphorisms are the beliefs that the earth is a mental creation and that everything vibrates and everything is in opposition. The Court of Appeals ruled in favor of Summum stating if communities wanted to display The Ten Commandments or similar monuments, they must be willing to accept all comers. 

Atheist groups loved this ruling, because it would have the likely effect of forcing the removal of all monuments with religious content. The atheists would be able to achieve coming in the back door, what they had failed to coming in the front. In 2005, the Supreme Court ruled, in a 5-4 decision, against atheists demanding that the state of Texas remove a Ten Commandments monument donated by a private organization from its state house grounds, which is almost identical to the ones in question in Utah. (See picture above).  The Court pointed out in that case that The Ten Commandments are a part of the nation’s religious heritage and legal tradition have been vital in shaping United States culture; therefore, the state was within its purview to include the monument on its state house grounds. 

The Supreme Court, in Summum, has now added to its 2005 Texas state house ruling providing that not only can governments display The Ten Commandments and other monuments with religious content, they can choose which displays will go on public property and which will not--as they always have. This power does not impinge on peoples’ First Amendment free speech rights: they are free to say and write about what they want, and assemble and advocate and protest in public places including city parks, they just don’t have the power to force governments to accept permanent displays. The Court noted that elected officials also have a free speech right at stake.  If citizens do not like the messages being sent by their elected officials, including in the monuments they choose to display, citizens can always vote them out of office. The Court added, if the government literally had to accept and accomodate all viewpoints as being equal, it would cease to be able to function.   

In my book, We Hold These Truths, I point out that the Founders certainly didn’t consider all beliefs to be equal and based the founding of the nation, in substantial part, on the faith that there are God-given inalienable rights that no government can justly deny. They argued in the Declaration of Independence that based on the “laws of nature and Nature’s God”, the British government had become a tyranny because it was failing to secure those inalienable rights endowed by the “Creator.” The laws of nature are those observable in nature, while the laws of Nature’s God (according to the most prominent legal treaties of the time including Blackstone’s Commentaries) are those recorded in scripture (the Bible) and include The Ten Commandments. These laws create corresponding rights. “Thou shalt not murder”: the right to life; “Thou shalt not steal”: the right to own property; “Thou shalt not bear false witness”: the right not to be falsely accused of a crime; “Honor thy father and thy mother”: the right to have a family. The Founders encapsulated these rights as “life, liberty, and the pursuit of happiness” and taken together they provide a bulwark against tyranny by one's government and against the unlawful intrusion of one’s fellow man.  They provide the framework to be all one was created to be.       

The belief in God’s overarching laws and the corresponding rights they create has been a vital part of the American political experience, and it should continue to be recognized by the government. Abraham Lincoln, Frederick Douglass and many others appealed to this bedrock of American faith to point out the injustice of slavery. Franklin Roosevelt used these laws to weigh the lying, thieving totalitarian regimes of Hitler’s Germany and Imperial Japan in the balance and find them wanting. Martin Luther King, Jr., during the Civil Rights Movement, exposed the nation’s failure to live up to God’s divine laws and called upon it to truly rise up to the nation’s founding vision. 

John Kennedy succinctly restated this nation’s founding vision shortly into his Inaugural Address saying, “For I have sworn before you and Almighty God the same solemn oath our forebears prescribed nearly a century and three-quarters ago. The world is very different now…[a]nd yet the same revolutionary belief for which our forebears fought is still at issue around the globe, the belief that the rights of man come not from the generosity of the state but from the hand of God. We dare not forget today that we are the heirs of that first revolution.” The Supreme Court’s ruling in Summum enables governments to continue to help us remember these foundational beliefs without having to give equal space and status on public lands to those who want to erect monuments saying there is no God, or truth, or rights endowed by a Creator. That’s something worthy of celebrating with thanksgiving to God!      

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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs in God's Providence and inalienable rights, throughout our nation's history.    
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Obama's Wrong: Tax Cuts Not Just to Wealthy

 

President Obama used his first prime time press conference to repeat his oft made claim that the tax cuts implemented under President Bush and President Reagan (by clear implication) were directed "at the wealthiest few Americans" and added that we've tried the " [tax cut] strategy time and time again, and it's only helped lead us to the crisis we face right now." Obama is wrong on both counts: the tax cuts were across the board to all income levels and rather than helping to lead us to the present fiscal troubles, created vibrant economic growth and record revenues for the Treasury. 

First, the Bush/Reagan tax cuts were not targeted at the wealthiest Americans; they were targeted at all Americans.  Under President Bush, the top rate went from 39.6% to 35% (and currently applies to those earning a taxable income over approximately $357,700) and the lowest rate went from 15% to 10% (for those whose taxable income is around $8000 and below for single filers).  There are other brackets in between (33%, 28%, 25%, 15%) which all reflect a reduction of  ususally 5% as well.  For clarity’s sake, taxable income is the amount someone earned minus deductions. 

The fact that tax cuts went to all income brackets directly contradicts Obama’s claim that the tax cuts only went to the "wealthiest Americans"; however that is not the end of the story because American taxpayers also benefited from both larger deductions, personal exemptions and other newly created or expanded tax credits under the Bush and Reagan Presidencies, including the Earned Income Credit (aimed specifically at helping lower income Americans) and the Child Tax Credit.  Indeed, as has been widely reported, due to deductions and credits, the bottom 40% of income tax filers end up having no tax liability at all, and many actually receive payments from the government. (See the non-partisan Tax Foundation report.) 

Looking first at deductions, the standard deduction is currently $5,450 and the personal exemption is $3,500 for a total of $8,950. So in actuality someone needs to earn at least that much before any of his income begins to count as taxable: i.e. for tax purposes someone who earns $8951 has $1 in taxable income (remember taxable income=the amount earned - deductions), which will be taxed at the 10% rate.  That being true someone can earn up to approximately $17,000 ($16,950) and will be taxed at the 10% rate (again, taxable income=amount earned-deductions: $16,950-$8950=$8000 in taxable income).  Both the standard deduction and personal exemption amounts go up every year to account for inflation.  To help lower and middle income Americans, the personal exemption doubled under Ronald Reagan.  As for the "wealthiest Americans", the exemption does not apply because it begins to reduce in increments starting at $160,000 for single filers and is $0 for anyone earning over $282,000.
 
Lower income Americans and those who are raising children also receive further tax credits to assist them in paying their tax bill, which can result in the federal government actually paying them more than they owe in taxes.  The Earned Income Tax Credit helps those earning under approximately $35,000 for individuals and $70,000 for couples to pay their taxes.  The less you earn the more you get.  The amount granted is also based on the number of people, children and other dependents being supported by the income. For example, say a family of four has two children and an earned income of $40,000.  Just taking the standard deduction and four personal exemptions for dad, mom and the kids, their taxable income would be $15,100 (often people are able to itemize their deductions instead—mortgage interest payments being a major component of this option—and reduce their taxable income even more). This amount is then taxed at the 10% rate, so their taxes due would be $1,510. Their Earned Income Credit would likely be about $340, assuming no major investment income or other factors.  The government, in effect, writes them a check for that amount and takes it right off their tax bill: their new total owed - $1,170.   

But that still is not the end of the story because now the Child Tax Credit comes in to play. This credit began under Reagan at $500 credit per child and doubled under Bush to $1000.  This credit acts in the same way as the Earned Income Credit and like that credit does not benefit “the wealthiest Americans.” Taxpayers can take the full credit amount if they earn under $75,000 for individuals and $110,000 married couples filing jointly.  Above these thresholds, the amount of the credit phases out: $50 from the credit for every $1,000 (so by $95,000 per individual and $130,000 per family, you are no longer eligible for the Child Tax Credit).  For our $40,000 per year married couple with two children, the full $1000 per child applies, so they get to take $2000 more off their tax bill, which actually results in a refund of $830.  So not only did this family not owe the federal government any taxes, it actually received money from the Treasury: i.e. their entire income was tax free and $830 got added on.  Most of the wealthiest Americans, after taking their deductions, etc., end up paying at least 28% of their total income in federal income taxes.  If that isn’t tax policy that benefits lower and middle income Americans, I don’t know what is. 

Finally, Obama's other assertion that the Bush tax cuts somehow led to the housing market bubble bursting and the subsequent mortgage and wider financial crisis can be dismissed out-of-hand. President Obama has never made the link (other than saying it did with no explanation how) in his speeches because there is none to be made. The Bush tax cuts helped pull us out of the recession of '00 and '01 and led to record revenues to the federal treasury in '06 and '07 ($2.6 trillion in the latter) and added 5 million jobs to our economy.  Reagan's even more dramatic tax cuts caused the nation's economy to grow an entire 1/3 larger, nearly doubled federal revenues, created 16 million jobs and caused the unemployment rate to drop from 10.8% to 5.3%.  

President Obama is so subtle (maybe deceptive or cunning is more appropriate) in mixing issues and blaming tax cuts “directed to the wealthiest few Americans” for our present economic difficulties, but examining the facts shows the error in his words. 
 
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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs found in the Declaration of Independence, throughout our nation's history.
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America, Look to California's Budget Crisis and Take Warning

 

"You and I, as individuals, can, by borrowing, live beyond our means, but for only a limited period of time. Why, then, should we think that collectively, as a nation, we're not bound by that same limitation? We must act today in order to preserve tomorrow." 

Ronald Reagan from his First Inaugural Address, 1981  

Barack Obama promised during his campaign to "spread the wealth around."  Watch out, because the combination of a newly elected Democratic President with an unfettered Democratic Congress will make this promise a reality, even if they have to borrow ever single dollar to do it.  Obama's support of the $819 stimulus bill passed by the House last week gives an indication that any sense of fiscal sanity has been thrown to the wind.  The bill, if it becomes law, would be the largest in American history.  If one wonders where all this profligate spending will lead, a look at the recent state budget history of California is all that is required.    

Ten years ago, California Governor Pete Wilson, a Ronald Reagan fiscally conservative Republican (lower taxes, reign in government spending), handed over the state to newly-elected Democratic Governor Gray Davis with a $10 billion surplus. Within the course of four years, Davis and the now liberated Democratic legislature managed to turn that surplus into a $35 billion deficit by 2003, even as most states in the country were experiencing balanced budgets or surpluses.  Just to give some perspective, the entire size of California’s budget was $160 billion at that time. During the four years Davis held office, revenues increased by 23%, so why the shortfall?  Spending went up 36%. Shamefully the state, which taken by itself is the 8th largest economy in the world, could not balance its books. 

 

The people of California responded by holding a special recall election in the fall of 2003 and throwing Davis out and putting Arnold Schwarzenegger in.  (Interestingly, when Ronald Reagan became governor of California in 1967 he had to deal with a major budget deficit left by the previous Democratic governor and legislature combination; and the same scenario played out in 1983 with the election of another Republican governor).  Schwarzenegger took immediate steps to staunch the bleeding and borrowed heavily as a stopgap measure, hoping to be able to craft a viable budget with the Democrats for the next fiscal year. He wanted to avoid raising taxes, if at all possible, given the state's business climate already ranked 46th in the nation (according to the non-partisan Tax Foundation) due to high taxes and onerous regulation.  Schwarzenegger pointed out that the state had (and has) been losing ten of thousands of manufacturing and service jobs per year over the past decade to neighboring states and overseas.  Raising taxes would only exacerbate the situation and actually shrink the tax base further in the long run. 

 

The state received a little reprieve during the next couple of years as the economy of the state, and the nation, picked up, but was still running a significant deficit.  During this time, the Democrats refused to implement the deep cuts necessary.  Now with the economic slowdown, California finds itself in real trouble again, facing perhaps a $40 billion dollar shortfall this year.  This go around the lenders are not lining up to help out either, in fact Moody even downgraded the state’s credit rating for short term loans for the first time in its history.  In another first, California just took the drastic measure of announcing that it will delay issuing refund checks to taxpayers by sending IOU's instead. As a friend quipped to me over the weekend, "I guess the state can't say much, if, due to current financial conditions, I send them an IOU for taxes I owe."  California also just implemented two day per-month furloughs for state employees and will almost certainly be making other broad cuts in government services (short of a federal government bailout) and increasing taxes yet again to try to close the budget gap: an additional 1% onto the sales tax is what’s being discussed.  This increase will mean the sales tax in the state will average around 10%: not good for the business climate.

 

The moral of this story is clear: if all this financial chaos can befall the world's 8th largest economy because of spending run amuck, is it any stretch to believe the federal government could find itself in the same place a few years from now if we take on at least $2 trillion in new debt during the next two years as the Democrats are proposing? How long will China, Japan, Arab counties and our other lenders continue to fund our debt? There are already rumblings of discontent from China. None-the-less the Democrats want to press on with hundreds of billions in unnecessary spending.  The current $819 stimulus bill will actually end up costing over $1 trillion when interest needed to pay it off is factored in.  It represents more than the cost of the entire Iraq War from 2003 to present and over $6000 dollars for every American household. Broken down as a cost per the promised 4 million jobs Obama says it will create, that’s over $250,000 per job.  The bill includes $200 billion-plus in “tax credits” (read $500/individual and $1000/per family checks from the U.S. Treasury) to most Americans including the 40% who do not pay federal income taxes, $2 billion for child care subsidies, $87 billion for health care, $2.4 billion for carbon capture projects (what’s that?), $1 billion for Amtrak and the bill goes on for 600+ pages. 

 

To give further perspective as to the total amount in play, the federal treasury in its most recent good year in FY 2007 took in a total of $2.57 trillion dollars, and spent $2.73 trillion (a deficit of $162 billion). This year’s deficit is already projected to be over $1 trillion (remember that’s ten 100 billions) and that is before any of the spending in the proposed stimulus bill is included, likely taking the total to $1.5 trillion for the year. In other words, they plan to spend what has been our entire federal budget ($2.7 trillion) and increase it over 50% more!  The American public seems to be catching on to just how mammoth and misdirected the current Democratic plan is as well.  A Gallup poll taken this week found 37% believe it needs major changes and 17% think is should be rejected outright.  In other words a majority of 54% oppose the current bill. 

Republicans in Congress point out there is no example in American history when such spending stimulus bills have worked to jumpstart the economy, including last spring when the government issued tax credits of $600/individual and $1200/family to most American taxpayers. Author Burton Folsom points out in his just released book about the New Deal (the granddaddy of government spending stimulus plans) and the Great Depression that the unemployment rate stood at 20% in 1939, which is almost precisely where it was in 1933 when President Franklin Roosevelt took office. Roosevelt's own Treasury Secretary, Henry Morgenthau, testified before a Congressional hearing in the summer of 1939, that the New Deal in terms of creating jobs had been a failure and straddled the nation with twice as much debt in just over six years.  That’s because governments don’t truly create jobs and wealth, because they do not build things people want to buy.  Governments tax businesses and people and borrow in order to "create" jobs and provide services, often important to the community, but they do not directly create wealth.      

If private enterprise creates wealth, the answer to our present crisis is to direct all efforts towards creating a more favorable business climate: tax cuts are what has been the answer in the past. They worked for John Kennedy in the 1960’s, Ronald Reagan in the 1980’s and President Bush in the early to mid-2000’s.  Further in order to grant immediate relief and put more money in the economy, the Republicans want to drop the tax rates on those earning $65,000 and under (15% tax bracket to 10% and the 10% to 5%). The amount being withheld from their weekly checks could then be adjusted immediately to reflect their lower tax burden and free up more money for them to spend. Further to turn around the housing market--the genesis of our current economic difficulties--Republicans are calling for granting a $15,000 tax credit to home buyers and government guaranteed loans of around 4% to qualified first time buyers. All this can be accomplished for 100’s of billions less than the Democratic stimulus monstrosity.   The proposed GOP Senate plan would cost around $445 billion, half as much the Democrats' bill and, based on previous experience, has a great prospect of working.         

California offers a cautionary tale as to what can happen to a wealthy government within a very short time when it spends without restraint. Most agree federal government action must be taken to improve the economy and help people in need of immediate assistance, but the current Democratic bill spends 100's of billions needlessly, while offering little that has actually worked in the past to turn around an economy.
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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs found in the Declaration of Independence, throughout our nation's history.  

 

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Passing of a WW II Hero - Leader of "The Great Raid"

 

I just learned today that Robert Prince, who led "The Great Raid", died earlier this month.  Today, 30 Jan, marks the anniversary of the most successful rescue mission of its type in American history.  The 6th Rangers, led by Col. Henry Mucci (West Point, Class of 1936) and Cpt. Prince (Standford ROTC, Class of 1941), went 25 miles behind enemy lines in the Philippines and freed 511 American POW's in January of 1945.  

I met and interviewed Prince at his home in Seattle in the late 90's while I was doing research for my book and for a movie script.  Well, Miramax scooped my movie idea (see below), but I was so inspired by the story and Prince that I would call him every year on the anniversary of the Raid, and we'd talk.  I met his wife, Barbara, when I visited their home, and January 31 was their wedding anniversary (which was the date the Rangers made it back to American lines with the freed POW's).  They married in January of 1942, before he headed off to war, so Prince had two reasons to celebrate 31st each year.  Barbara passed on about 5 years ago, and she would usually come up in our conversations. 

I always knew this day would come, but today when I called Prince's home in Washington, his son answered.  He happened to be at his father's place, so we talked and he told me his dad had died on January 1 at 89 years old.  Cpt. Prince and I last spoke this past summer.  I had sent him a copy of my book, which he really enjoyed.   

Here's a news account of his passing and more on his exploits.  In life, he demonstrated the highest ideals of Duty, Honor, Country. 
 

 
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The Dems Take Charge - Yikes!

For the first time since 1994, the Democrats will control both houses of Congress and the Presidency. Such control by a single party has been a rarity in American political life during the last 40 years. For the Democrats, it has happened only twice: 1977-80 and 1993-94 and each time ended with a radical reversal of their political fortunes. Lest the Republicans get too boastful, they’ve only held all the reigns for the same length of six years. The only difference was that theirs ran all together: 2001-06, and we all know how that stint ended. If history is instructive, the Democrats should not become too comfortable with their current position of dominance because it will likely pass quicker than they would hope.

Barack Obama, during his Inaugural Address yesterday, gave a strong indication what he plans to do with this latest iteration of Democratic rule.  After laying out a series of new spending programs for infrastructure, education and research he said, "Now there are some who question the scale of our ambitions - who suggest our system cannot tolerate big plans....The question is not whether our government is too big or small, but whether it works - whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified."  Given that the current federal deficit is projected to be over $1 trillion, the question of whether government is too big seems extremely relevant.

 

Obama's statement stands in sharp contrast to President Reagan's prescription in 1981 when the country was also experiencing stark economic times: unemployment on the rise at 7.5% on its way to 10.8% (currently 7.2%), and inflation at 12% (currently under 4%).  President Reagan famously said in his Inaugural Address(video) "In this present crisis, government is not the solution to our problem; government is the problem."  He later added, "From time to time, we have been tempted to believe that society has become too complex to be managed by self-rule, that government by an elite group is superior to government for, by, and of the people. But if no one among us is capable of governing himself, then who among us has the capacity to govern someone else?"

 

Reagan went on to observe that there is of course a rightful place for government.  He, for example, supported monetary policies by the Federal Reserve that helped stamp out inflation.  Certainly guarding against and prosecuting white collar crime on Wall Street is another proper function of government.  Micheal Milken, the infamous "Junk Bond King" of the 1980's, learned this lesson first hand, when brought to justice for fraud at the close of the decade.  Reagan's most fundamental belief however was in the American people: if not burdened by heavy taxes, they could and would right the economy.  What resulted was the longest sustained period of economic growth since World War II and the Gross Domestic Product growing an entire third larger.  Unemployment fell to 5%, inflation to 4.8%, the poverty rate shrank and real incomes rose across the board.  The unprecedented peacetime expansion proved that lower taxes and less government in people’s lives was the way of the future. 

 

The economy experienced a minor recession in 1990-91 under the first President Bush (economies have cycles), which helped usher in the last time Democrats held all the reigns.  Bill Clinton came to office in 1992 running as a "New Democrat." In other words, he was not an old liberal Democrat who believed in the tax and spend policies of the past as the answer for our nation’s ills.  Clinton promised to fix the economy and govern from the center.  Enough people were ready for something new after 12 years of Republican Presidential rule that Clinton won by a sizeable Electoral College vote of 370 to 168 against President Bush. Interestingly Barack Obama, running against the current President Bush’s record on a theme of “Change,” defeated McCain 365-173: not quite as good as Clinton, though Obama had no third party candidate like Ross Perot siphoning off votes from his opponent, as Clinton did. The break down in Congress in this year’s election was almost exactly as they were in 1992.  Then the Democrats controlled the Senate 56 to 44, and the House 258 to 176. This go around left them ahead 58 or 9 to 42 or 1 and in the House 257 to 178, nearly identical. 

 

Despite President Clinton’s assurances that he would govern from the center, in his first months in office he pursued three very liberal policies: universal health care, raising taxes particularly on the “rich,” and ending the ban which prevented those living as openly gay from serving in the military. He managed to raise the top tax bracket to 39.6% (up from the 28% under Reagan), but his other two initiatives failed miserably and in a publicly embarrassing fashion.  The country did not respond favorably to the Democratic liberal agrenda and what followed was the midterm election of 1994.  In a stunning reversal, Democrats lost both houses of Congress going from controlling the Senate 56-44 to being in the minority 48-52 and in the House from 258-176 to 204-230. The Republicans maintained control of both houses throughout the remainder of Clinton’s time in office and during most of President Bush’s.  Following his rebuke in 1994, President Clinton tacked back towards the political center-right supporting measures more associated with Republicans like welfare reform and cutting the capital gains tax rate.  The economy flourished and Clinton left office with high approval ratings.

 

President-elect Barack Obama has promised to take on the very same three liberal issues that President Clinton found such minefields in 1993: universal health care, raising taxes on the “rich” and ending the ban on openly gay citizens from serving in the military.  The country still is not liberal, but center-right on most issues, as exemplified by the victory of all the initiatives upholding the traditional definition of marriage during this last election, even as Democrats experienced their gains. The nation also appears to be growing leery of ever-mounting government spending and debt even as the Democrats make plans to tack on additional trillion dollars to a deficit.  The deficit is already projected to be over a trillion this year, twice as large as any in American history. A recent NBC/Wall Street Journal Poll found 60% of Americans are concerned the new Congress will spend too much trying to boost the economy. Liberal tax and spend policies are still discredited in many circles.

 

While Obama and the Congressional Democrats may feel flush with victory now and think they can have their way, they should, to quote the Biblical maxim, “take heed lest the fall." They would do well to remember President Clinton's first two years in office, or what's new just may become old again very soon.  
 
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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs in God's Providence and inalienable rights throughout our nation's history.      
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GW Bush - The Crisis Presidency


 
Whatever one’s view of President George W. Bush, no one can say that the last eight years have been inconsequential. These were challenging years: perhaps no other President, save Abraham Lincoln and Franklin Roosevelt, has experienced a more challenging time at the helm of the ship of state. 

During these past eight years, there have been four major crises, any of which could have made up that one sentence description one thinks of when describing a particular Presidency (e.g. Lincoln-The Civil War; FDR-The Great Depression, WWII; Reagan-The Cold War, reviving the economy, Carter-The Camp David Agreement, The Iran Hostage Crisis). The four major crises during President Bush’s were: 9-11, the Iraq War, Hurricane Katrina, and the Sub-Prime Mortgage Meltdown. Any evaluation of the Bush Presidency at a bare minimum must deal with these four issues.  

More than any other event, the Bush Presidency will be remembered for 9-11. It was so sudden and unexpected and has rightly been compared to Pearl Harbor or the Kennedy assassination, both in terms of its shocking nature and because of how completely it changed the nation’s course. Despite some uncertainty in the early hours following the attacks (when the fog of war is often thickest), President Bush proved himself a strong leader in a time of crisis.   

Few will likely forget the words and images of the time: President Bush from the Oval Office that night, “Today our nation saw evil, the very worst of human nature, and we responded with the best of America.” From Ground Zero, President Bush speaking through a bullhorn. A fireman calls out, “We can’t hear you.” Bush responds, “I can hear you; the rest of the world hears you; the people who knocked these buildings will hear all of us soon!” Firemen begin chanting “USA, USA, USA…!!!”   Addressing Congress, “Whether we bring our enemies to justice, or bring justice to our enemies, justice will be done.”

In that address to Congress, President Bush named Osama Bin Laden and Al Qaeda as the likely perpetrators of 9-11 and called on Afghanistan’s Taliban government, who was harboring the key leaders from the terrorist group, to turn them over or face the consequences. When the Taliban refused, the United States deployed air power and Special Forces Units to the area in October.   Siding with the Northern Alliance (a name that sounds right out of Star Wars), the United States brought down the Taliban government and put Al Qaeda on the run. These years later Osama has not been killed or captured, but many who worked for him have including the mastermind of 9-11, Khalid Shaikh Mohammed; further the United States has not been attacked again, a scenario few would have thought likely on 9-11 as we saw the Twin Towers and the Pentagon burning on our television screens. On the whole, not bad. President Bush enjoyed the wide support of the public (in fact his job approval ratings were in the 90's, making him the highest rated President since such statistics were kept) and the nation itself was on the mend. 

Next came Iraq. President Bush believed and argued that the United States needed to not only deal with terrorist threats, but also to promote liberty in the region. Liberty, based on solid principles, was the surest antidote to the hopelessness and ignorance that breeds terrorism. His strategy came to be known as the Freedom Agenda. Bush also argued in the Age of Terror, threats could not be allowed to reach full bloom: the stakes were too high. Saddam Hussein was reconstituting his military and was paying terrorist bombers to attack Israel.  Further, he had thrown the U.N weapons inspectors out of Iraq and fired on U.S. and other allied planes seeking to enforce the “No-fly” zone.  In almost every way, Saddam was not complying with the U.N. resolutions ending the First Gulf War. Bush pointed out to do nothing in the face of his defiance only invited the contempt of our enemies and allowed Saddam more time to acquire weapons of mass destruction.  Most in the Congress believed President Bush’s assessment was correct.  The Senate voted 77 to 23 for the Iraq War Resolution and the House voted 297-133.  Among those who voted for the Resolution were Senators Harry Reid and Hillary Clinton.  
 

What happened thereafter is well known. The war was quickly won (that is toppling Saddam’s regime), it was securing the peace that became the hard part.  Some elements within and outside of Iraq did not want to see the new democracy succeed and violence escalated to the point where it appeared our efforts might have been in vain.  In the midst of the terror, the Iraqi people showed where they stood by braving intimidation by Al Qaeda and other groups to the point of risking their own lives to vote in large numbers, proudly showing off their purple-stained fingers. 
 
By 2006 as American and Iraqi casualties mounted, President Bush’s popularity and support for the Iraq War plummeted to new lows, leading ultimately to the Democrats taking back control of Congress.  Then Bush responded by making one of the boldest moves of his Presidency ordering a Surge of 10's of thousands more troops into Iraq, instead of drawing them down (as most all the Democrats demanded), and he instituted a new strategy to quell the violence and build loyalty to the Iraqi government.   Senate Majority Leader Harry Reid, Senator Obama, and Speaker Pelosi pronounced that the plan would not work with Reid going so far as saying that “The war in Iraq is lost.”  Well, the plan did work and bore great fruit within months of its implementation beginning in the spring of 2007. Violence remains down drastically--80% or more throughout most of the country (U.S. troops deaths down from high of 126, May '07 to 14, Dec. '08, for the year--314 in '08--the lowest since any year since the war began--versus the highest last year of 904), and the young democracy appears to be getting its footing. The jury is still out, but the mission of the Iraq War of both removing Saddam and promoting democracy in the heart of the Middle East looks likely to succeed. Recently, the United States returned the Green Zone to Iraqi control, which is among the last portions of the country for which the United States military was still directly responsible.  President-elect Obama must agree with President Bush's military strategy of the last couple of years because, in an unprecedented move, Obama chose to keep Bush's Secretary of Defense and much of the current President's team. 

 

As if conducting two overseas wars as part of an overall global war on terror was not enough, in the late summer of 2005 the United States experienced the largest natural disaster in its history with the landfall of Hurricane Katrina.  At a total cost of nearly $90 billion, Katrina dwarfed the next most costly storm, Andrew, by over half.  It required the evacuation of the entire city of New Orleans with its population of over 1 million people.  Further, more than 1800 people died as a result of the storm, versus the 65 that died during Andrew.  Somehow President Bush received the bulk of the negative press regarding how the government responded to the crisis.    

 

Traditionally, the state and local government are the first responders following such natural disasters, with the federal government available as a back up. While the federal government fulfilled its normal role as backup in Mississippi and parts of Louisiana during and after Katrina, in New Orleans the scope of the disaster was so immense, with the flooding of almost the entire city, and there was also almost a complete break down in state and local government, forcing the federal government to stand in the gap as best it could on short notice. Throughout the entire region and especially in New Orleans, the U.S. Coast Guard performed the largest number of rescues in its 100 year history: over 33,000 throughout the region involving approximately 5000 Coast Guard personnel in the effort.  Meanwhile, the United State Army--the first elements of Task Force Katrina under General Russel Honore--rolled in New Orleans the Wednesday, following the breaching of the city’s levees that Monday and restored order. Task Force Katrina became 71,000 strong consisting of members from all the branches of service.  It was the largest military response to a natural disaster in the history of the country.          

 

Despite all the federal government had done in jumping into this unexpected role of being the primary first-responders in New Orleans and literally saving the day, Democratic leaders in Congress, then House Minority Leader Pelosi and Senate Minority Leader Reid, saw political hay to be made by thrashing President Bush and the federal government’s efforts. Pelosi called President Bush, “Oblivious, in denial, dangerous”: this observation came only days after the federal government had restored order to New Orleans and helped in the evacuation of all its citizens. Not surprisingly little if any mention was made of the colossal failures of the Democratic Governor Kathleen Blanco of Louisiana (who did not have the temerity to stand for re-election after Katrina-Republican Bobby Jindal won the job last year) and the Democratic Mayor Ray Nagin of New Orleans.  President Bush, as a leader actually having to deal with the situation on the ground, chose not to return fire by pointing out where the state and local governments had failed, but to work with Governor Blanco and Mayor Nagin to help those affected by the storm. Nagin in turn said, “Now, I will tell you this, and I give the president some credit on this — he sent one John Wayne dude down here that can get some stuff done, and his name is Gen. Honore." 

 

Was President Bush really "Oblivious, in denial, dangerous" as Pelosi charged as he was deploying the largest federal response to a natural disaster in U.S. history?  Some could argue he was slow at the switch; however, the entire situation regarding the Katrina governmental response can be likened to that of how a family functions. Those closest to and primarily responsible for meeting the needs of the family are the parents: analogous to the state and local governments. If for some reason the parents become incapacitated or unavailable, the grandparents or aunts and uncles can and should step in, but depending on how quickly the need develops, the transition may not always be smooth. While all may have wished the Army could have rolled into New Orleans the day after the city flooded and spared the people suffering without water at the Super Dome (query why the Mayor directed people there without at least a day’s worth of water), the truth is the Army was not on site (but assembling in Mississippi) and took on a new mission pretty well, given such short notice. While a lot of the PR surrounding Katrina was bad for President Bush, in reality the federal government performed admirably in very difficult circumstances. 

Finally, in the closing months of his time in office, President Bush has been given one last (hopefully) major crisis in which to respond: the financial meltdown and recession of the last several months.  Approximately two million jobs were lost in 2008 with unemployment jumping from under 5 to over 7%, while the stock market experienced its largest percentage drop since the heart of the Great Depression in 1931: 34%-4000 points.   Again, there are some who would blame President Bush as the primary cause for the nation's current economic woes.  Barack Obama, Harry Reid and Nancy Pelosi all said that it was the Bush Administration’s hands off approach when it came to dealing with the business community that led us to this point.  The left-leaning New York Times fleshed out this argument in a lengthy article. 

The Times article did give the requisite disclaimer near the beginning of the piece that, “There are plenty of culprits, like lenders who peddled easy credit, consumers who took on mortgages they could not afford and Wall Street chieftains who loaded up on mortgage backed securities without regard to risk.”  “BUT…”[emphasis added], the article continues (and the bulk of the article follows), “…the story of how we got here is partly one of Mr. Bush’s own making…”   The Times goes on to explain that President Bush placed a high premium on home ownership, and though he tried to reign in Fannie Mae and Freddie Mac--the government sponsored mortgage brokerage houses--he did not do enough. 
 
Conspicuously missing from this article, is a discussion of the far greater role congressional Democrats including Senator Chris Dodd, Chairman of the Senate Banking Committee and Representative Barney Frank, Chairman of the House Financial Services Committee played in resisting President Bush’s attempts to address the gathering crisis. During Bush’s first year in office (and in the years since), the President sought greater oversight of these institutions.  Frank, who has been one of the most out-spoken critics of the Bush Administration regarding the current financial crisis, said in 2003, “The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious losses to the Treasury, which I do not see.  I think we see entities that are fundamentally sound financially and able to withstand some of the disaster scenarios.”  Dodd expressed similar trust in the great work being done by Fannie and Freddie to get people into home ownership.  In light of our current crisis, was President Bush  correct in calling for greater oversight and regulation of Fannie and Freddie and the sub-prime market or Frank and Dodd in resisting the move?     

Also almost non-existent in the Times article was mention that the big push for low-income minority housing actually began in earnest under President Clinton in the late 90’s.  The same paper reported in the 1990's that the Clinton Administration was pressuring Fannie to expand mortgage loans to “people with less than stellar credit.”  Further that Administration threatened banks with stiff fines of up to $500,000 per violation for failing to meet quotas to lend to these groups.  Banks in turn dumped these risky loans on Fannie and Freddie and the makings of our current meltdown were all in place.

As was the case in Katrina, the Bush Administration was forced to respond to a crisis mostly not of its making, yet receiving the lion’s share of the blame from Democrats and many in the media.  The Administration acted vigorously to prevent the failure of major banking institutions and thus a complete collapse of the financial sector upon which all else depends.  These institutions appear to have stabilized following an unprecedented bailout running over $1 trillion.  The Dow Jones Industrial Average, a good indicator of future economic conditions, appears to have stabilized as well.  The trend in recent trading has been mostly flat or up: the free fall appears to be over and the major part of the crisis past.

Of course history will be the final judge of the Bush Presidency, but as it draws to a close, when measured against the enormity of the crises with which it had to contend, it fairs pretty well.  The achievement that ranks above all others is that the United States has not been attacked again on its own soil since 9-11.  Iraq appears on its way to being a stable democracy.  New Orleans is rebuilding and its levees survived another major hurricane passing through the area this fall.  The state and local governments played their role in helping respond effectively to the threat.  As far as the economy, President Obama will inherit a recession, as President Bush did, but economies have cycles, and if Obama follows Bush’s examples of cutting taxes and allowing the American people to do what they do best, free from the heavy hand of government, with greater fiscal constraint, all should turn out right.  The ship of state has been through a battering eight years, but with President Bush at the helm, we’ve made it through, and in far better fashion than current popular sentiment would have us believe.   

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Randy DeSoto is the author of the book We Hold These Truths, which addresses how leaders have appealed to the beliefs in God's Providence and inalienable rights throughout our nation's history.       
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Patton's Prayer - WWII - Dec. 1944

General George Patton’s Third Army led the Allied break-out of Normandy in late July 1944. By the end of September, it stood poised to enter Germany after liberating much of France during the drive across Europe. However, what the Nazi Army could not do at that point, the weather did. Europe’s unusually wet fall bogged down Patton and the rest of the Allied forces for the next two months, as they waited for the roads to dry.

The situation became so frustrating for Patton that on another rainy day in early December, he asked his Army chaplain, James O’Neill, for a weather prayer. By O’Neill’s account, the general said the weather would need to change if they were going to win the war. The chaplain composed this prayer:
 
 “Almighty and most merciful Father, we humbly beseech Thee, of Thy great goodness, to restrain these immoderate rains with which we have to contend. Grant us fair weather for battle. Graciously harken to us as soldiers who call upon Thee that armed with Thy power, we may advance from victory to victory, and crush the oppression and wickedness of our enemies, and establish Thy justice among men and nations. Amen.”
 
Patton liked it and ordered O’Neill to print 250,000 copies on prayer cards to distribute to the entire Third Army. On the reverse side of the cards was a Christmas greeting from the General.  (See link above).  Patton then questioned the chaplain as to how much praying the army was doing. O’Neill believed not much: when there’s fighting, everybody prays; but when it’s quiet, everyone just sits around and waits for things to happen.  The general responded, “Chaplain, I am a strong believer in prayer. There are three ways that men get what they want; by planning, by working, and by praying. Any great military operation takes careful planning, or thinking. Then you must have well-trained troops to carry it out; that’s working. But between the plan and the operation there is always the unknown. That unknown spells defeat or victory, success or failure. It is the reaction of the actors to the ordeal when it actually comes. Some people call it getting the breaks; I call it God. God has His part, or margin in everything. That’s where prayer comes in.”  Patton added, “A good soldier is not made merely by making him think and work. There is something in every soldier that goes deeper than thinking or working—it’s his ‘guts.’ It is something that he has built in there: it is a world of truth and power that is higher than himself.”

Patton referred to the account of Gideon in the Bible who, despite being greatly outnumbered, fought bravely and prevailed because the Lord was with him. (See link above chapters 6-8).  The general observed that his men should be praying, wherever they were—or eventually they would “crack up.”  Patton instructed O’Neill to put out a training letter for all the chaplains in the Third Army on the importance of prayer. It was circulated to the Third Army’s 486 chaplains and to every organizational commander down to the regimental level—3,200 letters. Recounting how God aided an army in the story of Gideon, O’Neill exhorted his fellow chaplains, “We must urge, instruct, and indoctrinate every fighting man to pray as well as fight. In Gideon’s day, and in our own, spiritually alert minorities carry the burdens and bring the victories.” O’Neill’s training letters and prayer cards went into the Third Army’s ranks starting 12 December 1944. Events on the battlefield turned dramatically on 16 December.
 
Nearly one hundred miles to the north of Patton’s Third Army sector, Adolph Hitler pulled some of his best units from battling the Russians to participate in a bold strike which he hoped would both dishearten the Allies and buy him time to strengthen Germany’s defenses. Under thick cloud cover with snow falling, Hitler’s 200,000 troops advanced through Belgium’s Ardennes Forest. The Allies could not employ their air cover because of the weather. The massive German thrust enveloped thousands of Allied soldiers—including 11,000 of the 101st Airborne Division in Bastogne. The German commander ordered the surrounded unit to immediately surrender—to which the American commander, General Anthony McAuliffe, famously replied, “Nuts.” The German army tried to break the hold on Bastogne while also pushing west, creating a 50- by 30-mile-wide bulge in the Allied lines. 
 
Prior to the Ardennes offensive, Patton had had his staff working on a contingency plan because he sensed the Germans might counterattack in the Bastogne region. Patton amazed all in the Allied planning meeting called by by telling General Dwight D. Eisenhower  by saying that his Army could attack in seventy-two hours he could attack in the Bastogne region with three divisions. His forces were army was now eighty-five miles to the south, with a portion already engaging the enemy—and the muddy roads were now icy and snow packed. Eisenhower gave the unrelenting Patton the green light to implement his plan.
 
On the same day the German commander demanded the 101st Airborne’s surrender (December 22), Patton’s forces hit the southern edge of the Bulge—still over thirty miles from the besieged city. Allied air cover remained grounded until the following dayDecember 23. That morning, after around the time many of the Third Army’s soldiers had received the prayer cards, the weeks-long cloud cover finally broke to a clear, sunny, and crisp ten-degree Fahrenheit day.  The clear weather meant the hard-pressed defenders of Bastogne could finally be re-supplied with ammunition and food by parachute airdrop while Allied fighter aircraft could strike German ground forces. With nearly three hundred daily casualties, the 101st could hold out only a few more days. 
 
Finally on 26 December, a beautiful sight appeared in the distance: a Sherman tank bearing the American star. The advanced elements of Patton’s Third Army were on their way, carving a tenuous, narrow corridor to the now-established Allied forces101st Airborne that would widen the next day.
 
The Third Army continued attacking the enemy throughout the sector. With the help of Allied units to the north, by the end of January they had completely pushed back the Bulge, continuing into Germany.  Around this time General Patton saw Chaplain O’Neill and cracked him on the side of his steel helmet with his riding crop, saying to him, “Well, Padre, our prayers worked. I knew they would.” The chaplain knew it was Patton’s way of saying, “Well done.”
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Randy DeSoto, while in the Army, served as an armor platoon leader and staff operatons officer.  He has included all the source material—and much more about how other leaders, in other wars, appealed to God—in his recently published book We Hold These Truths.  This excerpt first appeared in the Officers' Christian Fellowship Quarterly newsletter Connected in the winter 2007-08 edition.  The author can be reached with comments at wehold@juno.com
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