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Tag Archive for 'Congress'

Concern for Our Future

The question to ask about the president’s eye-popping budget, also rolled out last week, is whether it prepares the country for its future—or shackles it to past decisions that our leaders would rather not confront.

This quote from an article written by the dean of the Columbia Business School summarizes many of my feelings on the subject of the size and budget of the U.S. government. Most of you probably heard recently about the $3.8 trillion Obama budget with future ‘plans’ for reducing the deficit. As I have said many times on this blog, budget deficits and national debt do not concern me too much. It certainly does not worry me nearly as much as a major meltdown of our financial system (which it appears has been avoided). But in the long-run a growing national debt can pose problems for the economic health of a nation. The analogous situation for an individual seems obvious:

Click to continue reading “Concern for Our Future”

Detroit Auto Bailout

I’m curious what people think about this next round of bailouts? It appears that the White House and Democrats have agreed on taking a large stake in the Big 3 automakers.

The benefit for the auto makers? Money. They need capital to operate. It has been no secret that GM, Ford, and Chrysler have been struggling to compete with more modern, foreign car companies. Where does this leave them? Strapped for cash with expensive union contacts, too many dealerships, too many brands, and too many retirees to support. State law makes it nearly impossible for GM to start consolidating its 7000 dealerships (opposed to Toyota’s approximately 1500). Stubborness has made it difficult for GM to abandon one of its eight brands.4 It is no wonder the Big 3 are losing market share.

The cost for Detroit? Government oversight, control, and mandates. I would argue that government oversight is probably a good thing because a tough leader can start instituting some of the structural forms that make these companies unprofitable. Government control, on the other hand, is unfortunate, but the consequence of giving these companies tax payer money. Lastly, government mandates appear to be the knife in the heart of Big Auto.

The WSJ shed some light on the issue:

All this is dragged down by federal fuel-economy mandates that require them to lose tens of billions making small cars Americans don’t want in high-cost UAW factories. Understand something: Ford and GM in Europe successfully sell cars that are small but not cheap. Europeans are willing to pay top dollar for a refined small car that gets excellent mileage, because they face gasoline prices as high as $9. Americans are not Europeans. In the U.S., except during bouts of high gas prices or in the grip of a Prius fad, the small cars that American consumers buy aren’t bought for high mileage, but for low sticker prices. And the Big Three, with their high labor costs, cannot deliver as much value in a cheap car as the transplants can.

Read over that passage carefully and a few things become clear. 1 – Even if unions have served a role at some point in the life of these very storied companies, they are now choking them. The problem? UAW donated a lot of money to Obama, they paid 3 million dollars to run a single ad for him a few weeks before the election. It is clear that the solution to Detroit’s woes involve not only reshaping the corporate structure, but reshaping the corporations’ relationships with the UAW.

2- Fuel efficiency standards distort the decisions of automakers. American consumers pay big bucks to drive the cars they want to spend that money on. Think about this carefully. Let’s do it step-by-step:

-Car companies have the choice to make a variety of cars.
-They have inputs like labor, materials, and machinery.
-Those inputs are expensive.
-Consumers have the choice to buy a variety of cars.
-Demand is high for Trucks and SUVs.
-Automakers charge higher prices for Trucks and SUVs.
-They make a profit.
-Demand is low for Cars at the same prices.
-Automakers charge lower prices for Cars.
-They lose money on smaller cars, which sell for less, but still require the expensive inputs.
-Government mandates require Car companies to produce small, fuel efficient vehicles in expensive factories.
-Big 3 become unprofitable.

The government’s solution? Take over the companies and make them produce more fuel-efficient vehicles.

WAIT a second!?!?! Buy a company and pursue its unprofitable business?

But, gas is expensive and people want to stop global warming! Right?…Right? Let’s take the facts from a ‘green living website’:

In 2004, many experts criticized the investment return on hybrid cars. They said that with the economy at the time, at $2 per gallon of gas, it would take 12 years to recover the investment of a hybrid Civic compared to the purchase of an equally equipped Civic powered strictly by gasoline. At that point, the hybrid Civic only averaged seven more miles per gallon than the gas powered Civic. Additionally, the hybrid Civic’s sticker price was $6,000 more.

Additionally,

In 2004, Max Martina, managing director of the Alternative Energy Institute, said that gas prices were going to have to reach $2.50 to $2.65 to cause hybrids to show a five year return on investment.

Gas has to be around $2.50/gallon for your hybrid car to save you any money over buying the standard model. With gas at current prices, it would take approximately 12 years. Not only are hybrids more expensive up-front, the investment is highly sensitive to fuel prices. If its the environment we are worried about, then we’ll have to wait for some kind of carbon tax for producing these cars to be a profitable decision. Until then, it is hard for consumers to justify purchasing these cars because the incentives aren’t in place for people to value global warming in their economic decisions. Furthermore, tax incentives to buy these cars are about to expire as well:

Hybrid tax incentives start to go away when a car maker sells its 60,000th alternative-fuel vehicle, a level Toyota reached in mid-2006 and Honda hit in the third quarter of 2007. The amount of the tax credit is first reduced by 50% before disappearing altogether over several months. Honda’s tax credit, currently $525, will be phased out by Dec. 31, according to the Internal Revenue Service. The Civic credit had been as high as $2,100 before the phase-out began in January 2008.

The article continues,

“If you look at it strictly from a short-term payback perspective, without the tax credits, hybrids make absolutely no sense for the average driver,” says Kim Korth, president of IRN Inc., a consulting firm in Grand Rapids, Mich. “The tax credit at least made it neutral, if not positive.”

Removing tax credits would extend the time it takes to receive a return on investment on a hybrid car in some cases up to 16 years! That article is from November, gas is has continued to drop since then.

So, what is Congress thinking? Why is the Bush administration agreeing to this non-sense? Making hybrid cars isn’t going to save Detroit! Requiring the Big 3 to make these cars will kill them. In fact, the Chevrolet Volt, an electric car which is getting everyone excited, will cause GM to lose money “for years”.

I know this blog post would disappoint Al Gore, but I think everyone needs a reality check here! This is going to cost a lot of money and involve a ton of special interest? When do we get smart about this?

I can tell you right now, that this NY Times editorial is not the answer:

G.M. said it would offer 15 hybrid models by 2012. Its Chevy Volt, which can travel up to 40 miles on electric power, is scheduled for production in 2010. Chrysler also said it would offer an all-electric automobile. Ford said it would cut trucks, vans and sport-utility vehicles to 40 percent of its portfolio from 52 percent in three years and would put more fuel-efficient engines in most of its cars.

Congress should ask for more

Classic. A NYT article heralding the inception of the unprofitable Volt and wanting Congress to make things worse.

Responsibility in Politics

Something has been bothering me lately. It has been plaguing my conscience and running rampant throughout this blog.

Things go wrong. It happens. We depend on the leaders we elect to use a philosophy consistent with our own to avoid mistakes. They happen none the less. As citizens in America’s polity, the officials we elect are accountable to us in a unique way.

Currently, it is clear that political actions have had ramifications in the economy. It is also clear that foreign policy decisions by our political leaders have resulted in a war in Iraq and Afghanistan.

Where does the buck stop?

Harry S. Truman promised that the buck stopped at the President’s desk. I don’t think we have the same level of responsibility among our political leaders today. I think that President Bush has taken responsibility for the wars:

“The situation in Iraq is unacceptable to the American people, and it is unacceptable to me,” Bush said. “Where mistakes have been made, the responsibility rests with me.”

Bush’s approval ratings show that the American people are not completely satisfied with this. In other words, it is too little too late.

Recently, Alan Greenspan took some responsibility for his part in our current economic woes:

The 82-year-old Mr. Greenspan said he made “a mistake” in his hands-off regulatory philosophy, which many now blame in part for sparking the global economic troubles. He quoted something he had written in March: “Those of us who have looked to the self-interest of lending institutions to protect shareholder’s equity (myself especially) are in a state of shocked disbelief.”

My question is where will the buck stop in 2008? Will it keep going back to Bush? If the Democrats are elected, I think Bush will be blamed for the next 8 years. I think McCain got it right when he said Obama isn’t running against Bush. I think the entire DNC needs to realize this:

“Senator Obama, I am not President Bush,” said McCain in the third and last presidential debate Wednesday night after Obama pointed out that he had voted for Bush’s budget proposals. “If you wanted to run against President Bush, you should have run four years ago.”

The problem is that Americans are not happy with the buck stopping with a Republican in the White House. The party needs to convince people that the buck will stop with John McCain and he’ll take responsibility for the future of America.

If Bush keeps getting blamed, when will we move on? Bush did not have a great presidency, only history will show how it is really viewed, but we need to move on. Every candidate is campaigning on change, but if we don’t change our mindset to the future and to ownership of our actions, there will not be real change.

I’d like to see Congress take responsibility for subsidizing mortgages, Democrats take responsibility for Congress post-2006, and the next president take responsibility for the future. The past affects our future, but we cannot keep blaming the past or we will never move on.

How Would You Expect the U.S. To React to Another Attack?

I have been thinking about what I would expect our leaders to do if America was attacked again. I think how you answer this question reflects a lot on how you view policy decisions today.

Think about the state of America after 9/11. We all learned a lot about ourselves. I know that I personally felt angry afterward. A lot of Americans did. We expected the President and Congress to respond swiftly.

If we were attacked again would that sentiment reappear? I think it would. I think the United States’ decision to retaliate would be guided by our current wars. The amount of evidence demanded by the American people would certainly be higher. We would want to know for certain who was responsible and we would fight back again.

Maybe you agree, maybe you don’t, but ask yourself this question: How would you expect the U.S. to react to another attack?

What actions should we take now that our consistent with that future possibility?

Politicking Our Economic Woes

A few weeks ago, I wrote Financing the American Dream. In this post, I talked about the muddling of economic analysis in politics and theorized that the government played a role in our current Mortgage/Credit/Housing/Banking Crisis. Yes, I think we need to choose one name and stick with it. I think that Mortgage Crisis is most appropriate because it is at the root of the problem. Finally, I linked to a few articles by Richard Epstein (of the University of Chicago) and his belief that America was too quickly jumping on the regulation bandwagon.

Today, the Wall Street Journal shed some more light on this and, in my opinion, affirmed my beliefs:

Finally, on the matter of deregulation and the financial crisis, Sen. Obama should consider his own complicity in the failure of Congress to adopt legislation that might have prevented the subprime meltdown.

In the summer of 2005, a bill emerged from the Senate Banking Committee that considerably tightened regulations on Fannie and Freddie, including controls over their capital and their ability to hold portfolios of mortgages or mortgage-backed securities. All the Republicans voted for the bill in committee; all the Democrats voted against it. To get the bill to a vote in the Senate, a few Democratic votes were necessary to limit debate. This was a time for the leadership Sen. Obama says he can offer, but neither he nor any other Democrat stepped forward.

Instead, by his own account, Mr. Obama wrote a letter to the Treasury Secretary, allegedly putting himself on record that subprime loans were dangerous and had to be dealt with. This is revealing; if true, it indicates Sen. Obama knew there was a problem with subprime lending — but was unwilling to confront his own party by pressing for legislation to control it. As a demonstration of character and leadership capacity, it bears a strong resemblance to something else in Sen. Obama’s past: voting present.

Okay, that is a big chunk of the article, but read the whole thing. If you are planning on voting based on our current economic situation (which I largely frown upon), then please, please read this article. Please read the first post that I made and read that editorial with outtakes from Senate hearings. Congress deregulated the mortgage industry through Fannie Mae and Freddie Mac in order to subsidize house ownership in the U.S. Why would they do this? Why would Democrats endorse doing this? Well, on face it seems like a win-win: deregulation for Republicans, helping people with bad credit get homes for the Democrats.

I feel like almost every politician is lying on this issue. Wall Street greed? I thought we got over this in 1987 with the movie aptly titled “Wall Street”. Wall Street firms are staring at computer screens looking for a signal to respond to. If anyone would respond to this crisis quickly it would be a trader on Wall Street looking at indicators updating themselves every second. They are continuously looking at economic data. Continuously. A Congressperson may see these figures once a month. Add people looking for business opportunities (read: make money or greed, if you will) and a government looking to get people owning homes, then you have a mortgage crisis. Giving people sketchy loans to get them inside a house is predicated on the expectation that the market value of the homes will rise. If the value rises, then the sketchy homeowner is building equity and refinancing at a better rate. If the value falls (which happened), then people’s mortgages are worth more than their home and they foreclose.

I want someone to come out and tell us: “Look, we tried to get people in homes, we brought the banking system on-board by guaranteeing the solvency of Fannie and Freddie and the market went bad. We made a decision that looked good in the current market, but was not robust enough to survive a downturn. In the future, we will need stronger oversight of government sponsored enterprises. The mission of deregulating private enterprise is still alive and well, we can use the lessons of this crisis to help us regulate smart, not more.”

Seriously, copy that, go ahead. I will be so happy for the country, that I would not care. Seriously.

The WSJ has also shed some light on Obama’s 95% Illusion:

It’s a clever pitch, because it lets him pose as a middle-class tax cutter while disguising that he’s also proposing one of the largest tax increases ever on the other 5%. But how does he conjure this miracle, especially since more than a third of all Americans already pay no income taxes at all? There are several sleights of hand, but the most creative is to redefine the meaning of “tax cut.”

For the Obama Democrats, a tax cut is no longer letting you keep more of what you earn. In their lexicon, a tax cut includes tens of billions of dollars in government handouts that are disguised by the phrase “tax credit.”

Again, read the whole article it is worth it. I don’t buy into the 95% claim. Most people do not pay taxes, this is pseudo-welfare. If Obama wants to increase government spending in our current economic condition, he should consider adding clarity to the tax code, not more confusion. Where is Steve Forbes with the flat tax when you need him? For some people, Obama’s tax plan will create an incentive not to earn more money because if they do, then they will stop receiving benefits.

Take an accounting, finance, or economics class, government transfers are different than taxes. This is a transfer of wealth, not a tax cut. They are different things. Obama might just pull a fast one on the American people. (I’m not a fervent anti-Obamaist, just a concerned economist).

Financing the American Dream

Intro: This post explores some recent news regarding the Financial Crisis and posits the idea that an important issue has been politicized to defend an ideological mission. That mission comes from the idea of subsidizing and increasing home ownership through Fannie and Freddie Mac. If the crisis destroys the economy it calls into question fundamentals of the idea of the government helping people reach the American dream. For the Democratic party this a central tenant of their belief that the government should be active in assisting individuals reach their goals. As opposed to a more traditional conservative, ‘hands-off’ approach to government.

Read on…

Click to continue reading “Financing the American Dream”

Real ID Extension Stops Implementation

Well, I have been browsing the CATO website and found another interesting article, Rejecting National ID:

The DHS has admitted that not a single state will comply with the REAL ID law by the May 11, 2008 deadline. Even today, nobody knows how to build a massive database system that protects Americans’ privacy and data security. So the department is giving states extensions until the end of 2009, just for the asking. It is also threatening to send air travelers to secondary search at airports if their states haven’t applied for those extensions and kissed the DHS ring.

Why the brinksmanship? Here’s one reason: The top DHS officials involved in REAL ID will be leaving their jobs by the end of the year. A new administration takes over in January 2009, and they intend to be ensconced all around Washington, D.C. in lobbying and consulting jobs by then. Their prospects rise if they have a program to lobby for, and they want to score a victory.

It appears that the extension of the Real ID deadline will effectively move the policy’s implementation to the next administration. It appears that the states voice against this policy has prevailed, for now.

Interesting Article about the War on Terror

I have not checked recently, but I do not think the readership to this blog is extremely high, but I am not trying to make money from advertising or change the world. So I will give a shoutout to my friend Bill’s Blog and an interesting article he linked to written by one of his profs.

As my political views mature and the political landscape of the United States changes life is becoming increasingly frustrating. I feel disconnected from the way our country works because to me it just does not make sense. I would highly recommend trying out this podcast by Dan Carlin. If you have never dabbled into podcasts before I think this would be a great way to become hooked. It is a reasonable and interesting commentary on current events without the political skew. It is also long enough where an issue can be developed, but you do not get bored. As of right now it does not have any commercials either!

Anyway back to my frustrations and this article. This deserves a more well developed post so I will try to make it short and let the article stand on its own. I think the really frustrating thing is the perverse incentives that are created by the destruction of state and individual rights. The scary thing about this is the lack of responsibility it creates in all levels of government.

It is fair asking how we kicked so much ass in World War II, but how we are failing so badly now. The article answers this question on a variety of issues fundamental to waging a war. What really concerns me and I think answers this question on a more broad basis is that Congress has not declared war. I think if we want to wage and win a war it should be a declared and focused effort. The War Powers Act should probably be limited and scaled back. I am all about the people. The Executive takes power away from the Congress, which represents the people. Remember when you vote for President that you are not only voting for their policies that will not be fulfilled, but you are voting for numerous appointments to Federal Administrations. People who make policy without a vote of Congress or approval of the President. Of course, Congress takes power away from the people, it was meant to make government more efficient so everyone does not have to show up to Town Hall. The problem is when they take so much power that the states lose their rights (10th Amendment, anyone?).

There is just so much disconnect between the citizens and our wonderful state.

Democratic Congress Changing Route Set by Republicans…Or Not…

After the media threw a fit about the wiretapping program and Democrats promised change after taking over Congress, nothing happens. Questionable attacks on our privacy remain unchallenged. Ahh…election years.

2+2 may not equal 5, but in our two party system 1+1=1

Democrats Seem Ready to Extend Wiretap Powers

By ERIC LICHTBLAU and CARL HULSE
Published: October 9, 2007
WASHINGTON, Oct. 8 — Two months after insisting that they would roll back broad eavesdropping powers won by the Bush administration, Democrats in Congress appear ready to make concessions that could extend some crucial powers given to the National Security Agency.

Administration officials say they are confident they will win approval of the broadened authority that they secured temporarily in August as Congress rushed toward recess. Some Democratic officials concede that they may not come up with enough votes to stop approval.

As the debate over the eavesdropping powers of the National Security Agency begins anew this week, the emerging measures reflect the reality confronting the Democrats.

Although willing to oppose the White House on the Iraq war, they remain nervous that they will be called soft on terrorism if they insist on strict curbs on gathering intelligence.

A Democratic bill to be proposed on Tuesday in the House would maintain for several years the type of broad, blanket authority for N.S.A. eavesdropping that the administration secured in August for six months.

In an acknowledgment of concerns over civil liberties, the bill would require a more active role by the special foreign intelligence court that oversees the interception of foreign-based communications by the security agency.

A competing proposal in the Senate, still being drafted, may be even closer in line with the administration plan, with the possibility of including retroactive immunity for telecommunications utilities that participated in the once-secret program to eavesdrop without court warrants.

No one is willing to predict with certainty how the question will play out. Some Congressional officials and others monitoring the debate said the final result might not be much different from the result in August, despite the Democrats’ insistence that they would not let stand the extension of the powers.

“Many members continue to fear that if they don’t support whatever the president asks for, they’ll be perceived as soft on terrorism,” said William Banks, a professor who specializes in terrorism and national security law at Syracuse University and who has written extensively on federal wiretapping laws.

The August bill, known as the Protect America Act, was approved in the final hours before Congress went on its summer recess after heated warnings from the administration that legal loopholes in wiretapping coverage had left the country vulnerable to another terrorist attack. The measure significantly reduced the role of the foreign intelligence court and broadened the security agency’s ability to listen to foreign-based communications without court warrants.

“We want the statute made permanent,” a spokesman for the Justice Department, Dean Boyd, said Monday. “We view this as a healthy debate. We also view it as an opportunity to inform Congress and the public that we can use these authorities responsibly. We’re going to go forward and look at any proposals that come forth. But we’ll look at them very carefully to make sure they don’t have any consequences that hamper our abilities to protect the country.”

House Democrats overwhelmingly opposed the bill in August and said the administration had been forced them into a corner.

As Congress takes up the new bills, a senior Democratic aide said, House leaders are working hard to ensure that the administration does not succeed in pushing through a bill that would make permanent all the powers it secured in August.

“That’s what we’re trying to avoid,” the aide said. “We have that concern too.”

The bill to be proposed on Tuesday by the Democratic leaders of the House Intelligence and Judiciary Committees would impose more controls over the powers of security agency, including quarterly audits by the Justice Department inspector general. The measure would also give the foreign intelligence court a role in approving, in advance, “basket” or “umbrella” warrants for bundles of overseas communications, a Congressional official said.

“We are giving the N.S.A. what it legitimately needs for national security but with far more limitations and protections than are in the Protect America Act,” said Brendan Daly, a spokesman for Speaker Nancy Pelosi, Democrat of California.

Perhaps most important in the eyes of Democratic supporters, the House bill would not give retroactive immunity to the telecommunications utilities that participated in the eavesdropping. That has been a top priority of the administration. The temporary measure gave the utilities immunity for future acts, but not past deeds.

Private groups are trying to prove in federal court that the utilities violated the law by participating in the program.

A former senior Justice Department lawyer, Jack Goldsmith, seemed to bolster their case last week when he told Congress that the program was a “legal mess” and strongly suggested that it was illegal.

The House bill would also require the administration to disclose details of the program. Democrats say they plan to push the administration to turn over internal documents laying out the legal rationale for the program, something the administration has refused to do.

In the Senate, the chairman of the Intelligence Committee, John D. Rockefeller IV, Democrat of West Virginia, is working with his Republican counterpart, Christopher S. Bond of Missouri, a main proponent of the August plan, to come up with a compromise.

Wendy Morigi, a spokeswoman for Mr. Rockefeller, said that retroactive immunity for the utilities was “under discussion” but that no final proposal had been developed.

The immunity issue may prove to be the crucial sticking point between whatever proposals the House and Senate ultimately pass. Representative Jerrold Nadler, a New York Democrat who was among the harshest critics of the temporary bill, said in an interview he would vigorously oppose any effort to grant retroactive legal protection to telecommunications utilities.

“There is heavy pressure on the immunity, and we should not cave an inch on that,” Mr. Nadler said.

Mr. Nadler said that he was worried the Senate would give too much ground to the administration in its proposal, but that he was satisfied with the bill to be proposed on Tuesday in the House.

“It is not perfect, but it is a good bill,” he said. “It makes huge improvements in the current law. In some respects it is better than the old FISA law,” a reference to the foreign intelligence court.

Civil liberties advocates and others who met House officials on Monday on the proposed bill agreed that it was an improvement over the August plan but were less charitable in their overall assessment.

‘This still authorizes the interception of Americans’ international communications without a warrant in far too many instances, and without adequate civil liberties protections,” said Kate Martin, director of the Center for National Security Studies, who was in the group that met House officials.

Caroline Frederickson, director of the Washington legislative office of the American Civil Liberties Union, said she was troubled by the Democrats’ acceptance of broad, blanket warrants for the security agency rather than the individualized warrants traditionally required by the intelligence court.

“The Democratic leadership, philosophically, is with us,” Ms. Frederickson said. “But we need to help them realize the political case, which is that Democrats will not be in danger if they don’t reauthorize this Protect America Act. They’re nervous.

“There’s a ‘keep the majority’ mentality, which is understandable,” she said, “But we think they’re putting themselves in more danger by not standing on principle.”

Can Our Government Get Any More Ridiculous?

Water Carriers
October 8, 2007
Page A18

Everyone in Congress has promised to discipline his spending and earmarking habits. Funny that Members are proving just how watered-down those promises are in a water projects bill headed to President Bush’s desk.

The U.S. Army Corps of Engineers has a core mission: commercial navigation, flood and storm control, restoring some aquatic ecosystems. When Congress got around to authorizing the $4.9 billion in such civil works that the Corps identified, here is what happened: The Senate passed a bill that cost roughly $14 billion, and the House a different bill at $15 billion. Then they got together in conference and compromised — at $23.2 billion.

Congress’s core mission was apparently not only to leave no pork-barrel project on the cutting-room floor, but to destroy the idea of a cutting room. Just about every Member gets his earmark(s). Thus the Water Resources Development Act contains more than 900 special-interest boondoggles like:

• At least $1.8 billion to build seven unnecessary navigation locks on the Upper Mississippi River, a project embroiled for years by corruption and budget overruns.
• Billions for cross-country “environmental infrastructure,” which usually means building a marina or waterfront shopping center. • $105 million to Louisiana’s Port of Iberia, which the Corps estimated to generate 30 cents for every $1 spent before Senator Mary Landrieu demanded a highly dubious recount.
• A multimillion-dollar subsidyfest for wastewater treatment facilities, sewer projects, mine reclamation, beach maintenance and surface transport, none of which fall under the Corps’ jurisdiction.

Even all that wasn’t enough. The conference committee “airdropped” 19 earmarks that were not in the original House or Senate bills. Their appearance added $750 million to the tab, with $685 million of the new pork going to the Santa Ana River Mainstem (total cost: $1.8 billion and counting) in Southern California. The last-minute request was made by California Senator Barbara Boxer, who as chairman of the Environmental and Public Works Committee was responsible for crafting the legislation in the first place.

This airdropping clearly violates the transparency provisions of the Democrats’ recent ethics “reform.” Majority Leader Harry Reid, however, ruled that an “and/or” clause meant that the rules applied only to appropriations, not “authorizations,” so Ms. Boxer got her wish.

All Corps of Engineers authorizations are tossed into the same tub. The Corps has a $38 billion project backlog, so those backed by the most politically powerful Members bob to the top. Congress twice rejected amendments to prioritize the most urgent works.

Mr. Bush will probably veto this monstrosity, but there’s little doubt he’ll be overridden. Most Republicans seem content to go along; the conference report moved out of the House 381-40 and the Senate 81-12. They’re selling out twice. Democrats included GOP pork to ensure an override, weakening the Administration for the fall budget fights.

As for Democrats, they rode into the majority promising a less corrupt Congress. Already they’re poised to blow right past the Republicans’ pre-2006 spending abuses. When the Democrats campaign in 2008 as the party of “fiscal discipline,” taxpayers ought to pelt them with water balloons.



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