Bringing LIBERTY to
Capitol Hill -- 2008
Saturday Morning, May 3, 2008, 10:30am
A Discussion of The President's Saturday Morning
to listen to a replay of the May 3, 2008 Ozarks Virtual Town
Notes and Summary of the President's Address --
THE PRESIDENT: Good morning. This week, the Commerce Department
reported that GDP grew at an annual rate of six-tenths of a percent in
the first quarter. This rate of growth is not nearly as high as we would
like. And after a record 52 months of uninterrupted job growth, April
was the fourth month in a row in which our economy lost jobs, although
the unemployment rate dropped to five percent. (continued
How the President Differs from the American vision of
"Liberty Under God":
America's Founding Fathers created a nation they
experiment in Liberty"
During the 20th century, numerous nations
experimented with government central planning.
The Free Market -- "capitalism" -- creates
prosperity; the government inevitably creates recession, depression,
In America, under the Constitution, the Federal
Government only has the powers which "We the People"
delegated to it in the Constitution.
- The Tenth Amendment in the Bill of Rights summarizes the
philosophy of the Constitution:
- "The powers not delegated to the United States by the
Constitution, nor prohibited by it to the States, are reserved
to the States respectively, or to the people."
- In Federalist
45, Madison described the relationship between the federal
government and the states in these famous words:
The powers delegated by the proposed Constitution to the
federal government, are few and defined. Those which are to
remain in the State governments are numerous and indefinite.
The former will be exercised principally on external objects, as war,
peace, negotiation, and foreign commerce; with which last
the power of taxation will, for the most part, be connected. The
powers reserved to the several States will extend to all the
objects which, in the ordinary course of affairs, concern the
lives, liberties, and properties of the people, and the internal
order, improvement, and prosperity of the State. [emphasis
- Tinkering with the economy through a "stimulus package"
was never considered a function of the government, especially the
- The voluntary transactions entered into by Americans at home and
at work, based on the combined knowledge of millions of investors,
business owners, and managers of households, all of them accountable
to the discipline of profit-and-loss, organizes the nation's
economic activity better than a handful of politicians trying to
please special interests and get re-elected.
- Everything the President proposes in his Saturday Morning Radio
Address is unconstitutional, and represents a form of socialism
rather than capitalism. Our problems are caused by political
intervention in the economy, and further political
intervention to "cure" past political intervention
will only make the economy worse.
Saturday Morning Radio Address
"Liberty Under God"
PRESIDENT: Good morning. This week, the Commerce Department
reported that GDP grew at an annual rate of six-tenths of a
percent in the first quarter. This rate of growth is not nearly as
high as we would like. And after a record 52 months of
uninterrupted job growth, April was the fourth month in a row in
which our economy lost jobs, although the unemployment rate
dropped to five percent.
senior fellow Jagadeesh Gokhale comments:
"National output grew during the first quarter of the year
by 0.6 percent at an annual rate--much faster than expected based
on earlier comments by some analysts that the economy had entered
a recession. The estimate shows that the economy is down but not
out. It demonstrates a flexible private sector at
work--re-allocating resources quickly and efficiently in response
to turmoil in financial and credit sectors. Now that the Federal
Reserve appears to have quelled fears of cascading failures among
financial firms, it should not over-do cuts in the fed funds and
discount rates. Keeping those rates steady today would help to
maintain investors' faith in the Fed's commitment to contain
inflation, revive a sagging dollar, and relieve upward pressures
on energy and food prices."
Administration has been clear and candid on the state of the
economy. We saw the economic slowdown coming, we were up front
about these concerns with the American people, and we've been
taking decisive action.
claims to be able to prevent a depression. Obviously the
government is not strong enough or smart enough to prevent even a
little "economic slowdown" such as we are experiencing
right now, much less a more powerful economic contraction like a
Depression. Fed Chairman Ben Bernanke admitted
that the government caused the Great Depression in 1929, just as
libertarians like Milton Friedman have long alleged.
February, I signed an economic growth package to put more than
$150 billion back into the hands of millions of American families,
workers, and businesses. This week, the main piece of that package
began being implemented, as nearly 7.7 million Americans received
their tax rebates electronically. Next week, the Treasury
Department will begin mailing checks to millions more across the
country. And by this summer, it expects to have sent rebates to
more than 130 million American households. These rebates will
deliver up to $600 per person, $1,200 per couple, and $300 per
should not have taken this money out of the paychecks of
hard-working Americans in the first place.
Now the government re-packages our money and tells us to spend
it like it was a gift, rather than allowing us to have made that
money a part of a responsible budgeting process. This encourages
consumerism rather than disciplined investment and growth.
Saving Your Stimulus Government Check UNAMERICAN? - The Mises
package will help American families increase their purchasing
power and help offset the
high prices that we're seeing at the gas pump and the
grocery store. It will also provide tax incentives for American
businesses to invest in their companies, which will help create
jobs. Most economic experts predict that the stimulus will have a
positive effect on the economy in this quarter and even a greater
impact in the next. And Americans should have confidence in the
long-term outlook for our economy.
||High prices at the
pump are caused by government obstacles placed in the way of
producers, at the request of environmentalists who want human
beings to live in teepees rather than skyscrapers. If government
would allow producers to produce, including the use of oil in
Alaska and nuclear power, the supply of energy would be greater,
and the price would be lower.
getting more money back in the hands of Americans is a good start,
there are several additional steps that Congress needs to take to
ease the burdens of an uncertain economy. Americans are concerned
about energy prices. To increase our domestic energy supply,
Congress needs to allow environmentally safe energy exploration
in northern Alaska, expand America's refining capacity, and
clear away obstacles to the use of clean,
safe nuclear power.
||Dr. Arthur Robinson
publishes and edits Access to Energy: www.accesstoenergy.com.
to the President's rosy energy picture:
In fact, we do not even have the
engineers and industrial infrastructure to build the nuclear power
plants and coal fired power plants needed to replace the foreign
energy we can no longer afford. In our review article (it is at www.oism.org/pproject
- please read it carefully), we point out that the energy problem
can be solved by building one nuclear power installation in each
The chairman of one of our few
remaining nuclear engineering schools commented on our text
(before publication) that the text was right except that we
should propose that the building of these 50 plants be staged over
a period of 50 years. He says we would need to first rebuild
the engineering schools, then educate the engineers, and then
build the plants. The U.S. no longer even has a single iron
foundry capable of casting the casing for a nuclear reactor. The
wait for these from abroad is many years.
Nuclear engineers are in such high
demand - we do not graduate enough to replace those retiring from
our current nuclear installations - that the schools cannot induce
them to remain in school for PhDs. With BS or MS in nuclear
engineering, they are deluged with very high paying job offers.
There is no way whatever to prevent
the loss of the 30% of our energy that is now imported. We simply
do not make the goods and services required to purchase this
energy in the world market. After that 30% is lost - coming to
every community near you in the near future, Americans will begin
to learn what they have thrown away over the past 40 years. With
much of the remaining 70% is required for food production, heat in
the winter, and other essentials, so the loss of 30% will mean a
loss more than 60% of discretionary energy use. Air conditioning,
recreational computer use, and summer vacation car trips are going
to end. At least, we'll save a lot on road maintenance.
There is only one relevant
question. When Americans are squeezed by this huge reduction in
the technology that they have come to take for granted, will they
finally understand that taxation, regulation, and litigation - put
in by the politicians they elected - have caused this problem and
then throw the baggage out?
More likely, the baggage will
convince them to blame the industries that remain - tax the oil
companies higher, etc. If this happens, we will descend to third
world status, food rationing, and the danger of foreign conquest.
The only thing we can do for our
country is to redouble our efforts to educate our people about the
taxation, regulation, and litigation that is destroying their
lives. As the crunch comes - and it is coming fast - they must
understand. If they do not and the wrong choices are made, they
will lose their country and their freedom.
In short, the government dug us into this mess, and now claims
to be able to get us out by digging faster.
are concerned about rising food prices. Yet, despite this growing
pressure on Americans' pocketbooks, Congress is considering a
massive farm bill. Instead, they should pass a fiscally
||The squeeze on food
prices is caused in part by diverting corn to government-subsidized
ethanol. This is bad energy policy, bad agriculture policy
-- in short, government planning as usual.
are concerned about making their mortgage
payments and keeping their homes. Yet Congress has failed
to pass legislation I have repeatedly requested to modernize the
Federal Housing Administration that will help more families stay
in their homes, reform Fannie Mae and Freddie Mac to ensure they
focus on their housing mission, and allow state housing agencies
to issue tax-free bonds to refinance sub-prime loans.
||The housing crisis
is also government-generated.
restrictions on home-building to please environmentalists,
"easy credit" and "fiat money."
are concerned about their tax
bills. With all the other pressures on their finances,
American families should not have to worry about the Federal
government taking a bigger bite out of their paychecks. So
Congress should eliminate this uncertainty and make the tax relief
we passed permanent.
||Congress could slash
the budget by 50% tomorrow if it wanted to. It doesn't want to.
The number of constituents who whine for more money is greater
than the number of Americans who whine about high taxes. So
Congress won't bother looking at the Top
10 Examples of Government Waste, slash that waste and lower
Taxation is theft.
is now facing a tough economic period, but our long-term outlook
remains strong. This week we saw evidence that our economy is
continuing to grow in the face of challenges. This should come as
no surprise. No temporary setbacks can hold back the most powerful
force in our economy -- the ingenuity of the American people.
Because of your hard work and dedication, I am confident that we
will weather this rough period and emerge stronger than ever.
The Bureau of Labor Statistics reports
that the first three months of 2008 recorded the fastest growth in
government hiring in six years. The previous high occurred in the
months following the 9/11 terrorist attacks.
During this same period, according to the
BLS, private firms cut 286,000 Americans from jobs they previously
It can’t be said too often that wealth
is productivity and government produces nothing. Mostly,
government inhibits productivity. Hiring more government workers
when the number of manufacturing jobs is shrinking is suicidal.
you for listening.
Kevin Craig's Platform:
Communicating with Government and Media
- Contact Congress -- this
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make a critical difference on important issues.
John Adams once wrote that the American
Revolution began in 1761, when Massachusetts attorney James Otis
began legal challenges to the Writs of Assistance. He lost the case, but
"American independence," Adams wrote, "was
then and there born." Now do the math. That means it took 15
years to convince the rest of America to declare Independence (1776).
Then another seven years of war was required before a Peace Treaty was
signed (1783), and then six years before the Constitution was finally
ratified (1789). That's almost 30 years. (And Jefferson said we
shouldn't go 20
years without another rebellion!) How can we hope to convince
Americans to fight for principles they were never taught in government
schools? We need to be in this battle for the long term. "Eternal
Vigilance is the Price of Liberty."
The Democrat Party Radio Address:
André Carson delivered the Democratic
Five years ago Bush said "Mission
Accomplished." Obviously it hasn't been accomplished, and our
continued presence in Iraq is hurting our economy here at home.
Democrats supported "nation building" in Kosovo
under Clinton. They would be supporting the War in Iraq if it had been
led by a Democrat. Democrats control Congress. They can de-fund the war
tomorrow. They aren't going to. Their opposition to Bush's
nation-building is partisan talk.
for a replay of this edition of the Ozarks Virtual