The last time Republicans lived up to their reputation for sound fiscal policy was almost 30 years ago. In March 1995, Speaker Newt Gingrich and the Republican House caucus, to the jeers of skeptics, resolved to balance the federal budget within seven years. They did it in four.
Yet ever since, Republicans have provided slight protection against the unending torrent of Democrat spending schemes. They talk a brave game of cutting when out of power but are mostly unable to curb their political urge to spend when they have the authority.
Consequently, the national debt doubled from $5 trillion to $10 trillion under the inattentive George W. Bush. Candidate Donald Trump in 2016 promised to pay down the debt completely over eight years. Sure. In just four years, the debt surged by $7.8 trillion, a 36% hike.
We’ve all seen the drill. Create an emergency spending need where none exists (climate change) or which could better be addressed in a more measured way (COVID), exaggerate the danger, create panic, open the spigot, take credit.
$4.1 trillion in new spending during the Biden years for these created “emergencies” have put Americans in extremely dangerous fiscal territory. The voters this time gave House Republicans one more chance to redeem themselves. Now the stakes are higher than ever, and the pressure is on.
The early rhetoric was promising. However, vows to “curb wasteful government spending” were followed by…reinstatement of earmarks. Those little pieces of unvetted local pork slipped into spending bills to benefit individual legislators. What a crushing disappointment.
Republicans swore off earmarks in 2011. But when a Democrat Congress brought them back in 2021, 120 Republicans partook, scooping up $5 billion for their own Bridges to Nowhere. A motion this year to disallow earmarks was overwhelmingly defeated in the Republican caucus.
15 conservative policy groups cautioned Republicans that “earmarks are one of the most corrupt, inequitable and wasteful practices in the history of Congress.” Each congressman earns his little cookie by supporting all of his colleagues’ polite graft.
Yet GOP appropriators claimed earmarks were their “constitutional duty” and actually help to control spending! What a crock.
The Republican face plant over a matter so obviously wrong gives fiscal conservatives the sinking feeling that they may not be up to the fight. Candidates barely mentioned the deficit/debt during the last election, in contrast to previous campaigns. What fiscal crisis?
Instead, Americans have been conditioned by their politicians to believe that no wants should be unmet, that we “deserve” lavish government benefits unyoked to effort, that thorny political issues from illegal immigration to educational failure can be solved by simply spending more, and that any fiscal consequences can be safely kicked down the road.
Republicans aren’t going to dig out of this hole any time soon. But they can start the process by doing the right thing right now.
As this is written, Republicans are negotiating an omnibus budget bill of nearly $2 trillion. The leadership has known for nine months this must be completed by year’s end, but once again thoughtful, thorough budgeting has given way to a 4,155-page bill delivered at 1:30 AM to legislators who can’t possibly understand its provisions.
The bill contains no program cuts, but instead a mix of mandatory spending, outrageous pork like LGBTQ “Pride Centers,” and a specific prohibition against funding for border security. Lawmakers must approve the bill now or, in the case of Republicans, be held liable for the dreaded government shutdown.
But economist Steve Moore has a better idea. Republicans only need to refuse to waive provisions of the 2010 Pay-As-You-Go Act. PAYGO has been routinely suspended in recent years, but just 41 of 50 senators refusing this time would result in $130 billion in mandatory “sequester” cuts, just 5% of the Biden spending splurge.
Alternately, Congress could cancel the $80 billion for 87,000 new IRS agents, take back $500 billion in unspent COVID funding, and/or scale back the “Green New Deal” subsidies, a relatively painless way to uphold the PAYGO rules.
Congressional Republicans will never have a better opportunity to begin the return to responsible governance. If they don’t have the will now, when will they?
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
Last month U.N. members met once again to live the good life for a few days and push for the unlikely elimination of climate change. The United Nations Framework Convention on Climate Change convened COP27 in the impressive Egyptian coastal city of Shark El-Sheik. 100 heads of state and 25,000 attendees (carbon footprint alert!) met to advocate for a “giant leap on climate ambition.”
To win “this battle for our lives,” round tables galore were held, coalitions were formed, roles for youth and even children in the crusade were created. Curiously, no actions were taken that would directly limit greenhouse gas emissions, possibly because the much-ballyhooed Paris Agreement had proved worthless, with almost no nations honoring their commitments.
The signal achievement of the meeting was instead a comprehensive agreement on “loss and damage,” which is essentially code for reparations. Rich nations are to pay trillions to poor nations to atone for the doleful effects of industrialization.
China and India, the world’s foremost polluters, took a powder. The U.S., the nation that has reduced pollution the most since 1990, was at the front of the line volunteering to bankroll the effort.
Americans have traditionally contributed generously to international aid efforts. Yet the notion of climate reparations is problematic.
It’s not clear, in spite of the persistent claims in the media, that weather events are related to emission-caused climate change. But we do know that the human cost of disasters is much smaller today than in years past.
In his book Unsettled, Stephen Koonin, formally in the Obama Energy Department, points out that weather related deaths were actually 80 times more frequent a century ago, before the technological improvements in infrastructure and mitigation provided by industrialization.
Much of the insistence on reparations is rooted in resentment over the colonial past. But take Pakistan, a leader in the reparations movement. Pakistan claims its devastating floods are the direct result of climate change.
North America and Europe have seen significant recent reforestation. But since Pakistan left colonial status in 1947, its forests have shrunk from 1/3 to 1/20 of its total area. Water and silt run straight off the mountains causing the massive flooding.
Britain, the former colonizer of Pakistan, has cut its carbon emissions in half since 1990, mostly by closing coal mines at great expense. Meanwhile Pakistan has over 100 operating coal mines and can still afford to develop nuclear weapons. But you can’t go wrong blaming the colonialists.
U.N. climate change proposals in the past were more modest. They mostly financed specific infrastructure programs in poor countries, often bypassing local governments. But COP27 was written in a U.N. now dominated by aggressive socialist dictatorships with appalling human rights records.
As a result, the COP27 plan would call for $1.3 trillion in annual retribution payments that would go not to the practical needs of poor countries, but to the kleptocratic governments which plague foreign aid efforts. The effect would be to further strengthen the petty tyrants and save them from forces of reform.
The notion that the West should pay damages for the Industrial Revolution is poppycock. It was the capitalist democracies that produced the ideas, the economic system, and the innovations that have produced previously unimaginable income growth around the world.
Deadly diseases have been eliminated, infant mortality reduced, and life expectancy extended. Hundreds of millions have been lifted out of hunger and poverty, and for this we should pay?
There’s one more problem with paying reparations: we don’t have the money. The U.S. is the deeply indebted con man living on borrowed funds who continues to make extravagant gifts to adoring friends. And why not? It’s not really his money anyway.
If the socialist autocrats demanding compensation were the least sincere about creating more prosperous nations on their own, the guiding principles are well known: free markets, secure property rights, low and fair taxes, independent courts, and reasonable regulation. But don’t expect the dictators to sacrifice their power and privileges any time soon.
“Loss and damage,” is based on feel-good morality, false history, and imaginary economics. It would do nothing to improve the environment of our planet. We can in good conscience just say no.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
The world of finance is turning bullish on ESG, an investment strategy directing funds to corporations with woke environmental, social, and governance policies. Trillions of dollars have already flowed into ESG funds, projected to hit $50 trillion in two years.
ESG boosters claim the funds enable investors to do well by doing good. You can make good money while simultaneously bettering the world.
Wish it were so. In fact, ESG funds do neither.
Investing goals that compete with shareholder profitability have predictable results. A recent NYU study compared investment results created by firms with high versus low ESG scores, which are generated by professional ratings agencies. Over the past five years, high ESG funds have returned 6.3% compared with 8.9% for others. Over time, that’s a chunk of change.
Thus, Kentucky AG Daniel Cameron warned his state’s pension fund managers to avoid funds that “put ancillary interests before investment returns,” which would “violate statutory and contractual fiduciary duties” to the pensioners depending on them. Seniors deserve better than to have their retirements hijacked by an ideology they might not share.
The basic tenants of ESG are radical environmental policy (primarily the elimination of fossil fuels), woke social policies promoted by the company, and corporate governance that replaces merit with preferences based on race or gender.
The driving forces behind the growth of ESG are three very powerful financial firms. BlackRock, Vanguard, and State Street are, between them, the largest shareholders in 80% of the companies in the S&P 500. Their financial heft gives them the ability to force companies to implement ESG, making them, in effect, upstream controllers of these companies.
ESG is based on the foundational principle of progressivism—the notion that the most beneficial governance comes from giving experts, the best and the brightest, control over our lives. Personal freedoms and democratic processes must yield to a governing elite that knows best.
No goal is pursued more tenaciously than the elimination of carbon-based fuels. Consumers must be pushed into using renewables, principally by regulating fossil fuels into being scarce and expensive.
Green New Dealers may be thrilled to have the backing of the ESG behemoths, but the problem is that Europe is already experiencing a full-blown energy crisis, with America not far behind. For a year now, a post-COVID demand surge, combined with nuclear plant closures worldwide, long-standing over-investment in impractical renewables, and a global drop of over 50% in oil and gas investment since 2014, have combined to put serious pressure on economies worldwide.
Aluminum smelters, glass factories, and other EU manufacturers have had to shutter plants for lack of affordable energy. In the UK, the number of people behind on their energy bills ballooned from 3 million to 11 million earlier this year. Even in relatively secure Germany, there is deep concern over looming shortages of heating oil this winter after being shut off by Russia.
The hard fact is that, in our current state of technology, fossil fuels are the mainstay economic resource, whether we like it or not. We need more oil, natural gas, and nuclear energy, not less.
The hard-core environmental left, now joined by ESG interests, has worked itself into a lather insisting we can only avoid global catastrophe by achieving zero carbon emissions by 2050. Environmental alarmists achieve about the same accuracy with their predictions as the apocalyptic preachers of yesteryear. But even in the early stages of the project, it’s becoming obvious that it simply can’t be done.
Even if eliminating all emissions of carbon would significantly reduce atmospheric temperatures, and even if humans are the main villains of global warming, and even if we could somehow convince China and India to not sabotage the effort, it doesn’t matter. It’s neither economically nor politically possible to deprive humankind of the benefits of carbon fuels.
The financial titans pushing ESG are blowing an opportunity to do some real good. We need respected leaders who can stand up to the hysteria and exaggerations to propose practical, feasible solutions that would protect humanity from the worst effects of atmospheric warming.
Instead, the self-appointed experts are using other peoples’ trillions to push us down the road to dystopian government and perpetual poverty.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
One of the things I appreciated most during my 30 years practicing medicine in community hospital ERs was that race just didn’t matter very much. ERs were open to all, and there was one standard of care for all races and classes.
That was then. Today a wave of intolerant wokeness is sweeping over our healthcare system, insisting that medicine is shot through with systemic racism and that research and education efforts must be diverted from medical science to “dismantling white supremacy” in medicine.
The Association of American Medical Colleges (AAMC) recently introduced their new Diversity, Equity, and Inclusion (DEI) guidelines, which require that all medical students be taught to practice “allyship” when “witnessing injustice such as ‘microaggressions.’”
Residents are told to use their more advanced knowledge of intersectionality in making clinical decisions. (Just when you thought that race-based medical protocols were in our dark past.). Faculty are charged with teaching how “systems of power, privilege, and oppression inform policies and practices.”
Medical schools are enthusiastically falling in line. Examples abound. In 2021, the Anti-Racism Task Force at Columbia and the Diversity Task Force at Indiana University, joined by the University of Texas and other medical schools, endorsed the recommended AAMC “competencies.” “Health equity” concepts have become a prominent component of medical education.
The University of North Carolina is one of many schools that not only teach “social justice” and “anti-racism,” but use medical school applications to ensure compliance with principles of diversity in race, gender, and sexual orientation. Applicants who demonstrate reluctance toward the DEI agenda are weeded out in the application process. Oregon Health and Science University faculty are among those evaluated on their “DEI, anti-racism, and social justice core competencies” in performance appraisals.
The University of Arizona is on board too, with some additional twists. All faculty and staff are required to complete six hours of DEI training and complete one Implicit Association Test annually (in spite of its dubious relevance). Each of 17 clinical departments is required to hold three DEI credit-eligible events per year. All departments also have designated “diversity champions” to oversee compliance and round up laggards.
This is bad, very bad news for medical education, future doctors, and patients. Even before DEI was a thing, the quality of medical instruction had been in decline. Incoming students are less qualified and fail rates on board exams are climbing, partly because some students from groups that have been historically underserved are either allowed to skip the Medical College Admissions Test or are admitted with lower scores than those required from white and Asian applicants.
But instead of beefing up instruction in anatomy, physiology, and other disciplines that might come in handy when actually practicing medicine, medical schools are spending instructional time on such matters as white privilege and anti-racism, including Critical Race Theory (CRT).
CRT includes the notion that white people are inherently prejudiced against people of color and that there really is nothing they can do but acknowledge their defect, apologize, and grant compensating privileges to people of contrasting skin color, who by definition are incapable of bigotry. Dissenters from this new orthodoxy can be accused of “micro-aggressions” and “repressive practices” with ominous repercussions for their careers.
This intellectual intolerance also extends to those skeptical of “gender affirming care” for adolescents. This new practice provides permanent medical and surgical alterations to gender-confused school children for the rest of their lives so they can pretend to be the gender they choose when a teen. What could go wrong?
Several countries, including the U.K., Sweden, and France are now pulling back from relying on the judgments of impressionable adolescents for such drastic remediation, but dissenters in the U.S. are still punished.
Medical educators who teach students that racism and mutilation are okay when officially approved should humbly recall the history of their own profession. Modern medicine has been of immeasurable benefit to mankind. But when evidence-based science is ignored and authority replaces free inquiry, bad things happen.
Bleeding and purging, eugenics, thalidomide, lobotomies, and nonsterile wound probing are among the historical results. It is the duty of the medical profession to protect us from such horrors, not promote them.
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
America’s political class can no longer put off the inevitable. They soon will have to pay for their insanely reckless fiscal practices.
It’s not going to be pretty. America’s debt has reached an appalling $31 trillion. Annual interest payments will exceed $1 trillion this year. Debt service is well on its way to crowding out other priorities, a trend which will only accelerate.
Unfortunately, a steep rise in interest rates occurred near the end of the biggest spending binge ever. Economists are warning we are nearing the dreaded “doom loop” in which interest costs can be covered only by more borrowing which further drives up interest expense, creating a vicious cycle.
There is a weird, almost preternatural calm about our dire fiscal future during this campaign season. We’ve seen much consternation about inflation, public safety, the border, and other critical issues. Yet politicians and the media hardly mentioned the debt crisis, so the public seems to assume everything is under control.
It isn’t, not by a long shot. Uncle Sam issued $7 trillion in new debt to finance the recovery from the COVID pandemic and our panicked overreaction to the disease. It’s too bad we can’t take back that $7 trillion.
Much of it was stolen by fraud and bureaucratic bumbling. Funds went to school districts, that haven’t spent them so far, to finance the indolence of those who preferred not to work and to Democrat pet projects like “climate change.” Millions of voters in no distress whatsoever got checks, as did some illegal immigrants.
Many economists predicted that injecting that much cash into the economy would cause inflation, especially since supply was limited by weakness in the labor market, fuel shortages, and supply chain problems. They were mostly ignored but turned out to be absolutely correct. After decades of relative price stability, we are now experiencing 8% inflation with no end in sight.
Millions of non-economists are experiencing what that does to your standard of living. Suddenly, food, fuel, and shelter have become existential concerns to millions of Americans, and the economic future looks dim.
Inflation also increases government spending. Social Security benefits are inflation-adjusted, resulting in an 8%, $100 billion increase. Total government healthcare costs will grow from $710 billion last year to $915 billion.
Financial markets cannot ignore the cloud of government debt hanging over our economy. A serious recession will almost certainly soon be upon us. Already, declining stock and bond values over the past nine months assure a steep decline in capital gains tax revenue, another contributing factor to the deficit.
The Federal Reserve board is doing the only thing it can to address inflation, which is to raise core interest rates. That also directly adds to the national deficit, increasing the interest cost and driving up the balance, since no other source of funds is available.
So, to summarize, unnecessary COVID-related spending of $7 trillion has combined with chronic overspending, which caused inflation, which increased borrowing costs, which drove up the deficit, thus precipitating a recession which will deprive the government of revenues to pay down the surging debt load. Way to go, guys.
The principle response of the Biden administration has been denial. Our president claims the economy is thriving. A monthly .1% drop in the inflation rate was the pretext for claiming inflation was in decline. The national debt is never mentioned, nor are the untold trillions in future promises we have made to senior citizens and others.
Instead, Biden issued a probably unconstitutional executive order “canceling” unpaid college loans – i.e., transferring the liability to taxpayers. It was terrible public policy, penalizing those who had behaved responsibly and incentivizing student indebtedness in the future. It spent yet more money in a desperate attempt to bribe some votes for the midterm elections.
Yet there seems to be little taxpayer resentment. Why should they care? Their taxes aren’t going to increase. The obligation will be added to the great river of debt passed on to future generations—you know, those little people who don’t vote yet.
They will inherit an America feeble and impoverished, that will have forfeited its greatness because of our greed and selfishness. STOP THE SPENDING!
Dr. Thomas Patterson, former Chairman of the Goldwater Institute, is a retired emergency physician. He served as an Arizona State senator for 10 years in the 1990s, and as Majority Leader from 93-96. He is the author of Arizona’s original charter schools bill.
