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Rick Richman comments on the lack of discussion about one of the most important issues of the day.
Mark Steyn predicts future historians will marvel at the omission of any discussion of Iran at this week’s Nuclear Security Summit:
“For once, the cheap comparisons with 1930s appeasement barely suffice: To be sure, in 1933, the great powers were meeting in Geneva and holding utopian arms-control talks even as Hitler was taking office in Berlin. But it’s difficult to imagine Neville Chamberlain in 1938 hosting a conference on the dangers of rearmament, and inviting America, France, Brazil, Liberia, and Thailand . . . but not even mentioning Germany. …”
…It was all there: the self-referential view of history, the rhetoric divorced from reality, the disingenuous let-me-be-clear assurance, the implicit denigration of his country for its supposed sins, the celebration of the moral leadership he would bring to the world, the panoply of proposals – all delivered while rockets were fired and centrifuges were spun, with no U.S. response other than a conference at which the rockets and centrifuges were not discussed.
Nile Gardiner says that missing the funeral of Poland’s president should have been handled differently.
…The White House did subsequently announce that the president would attend the funeral ceremony in Krakow this past weekend, but like many world leaders he was unable to do so due to the grounding of flights over much of Europe.
One would have thought that President Obama might have used the time he would have spent in Poland paying his respects to the Polish fallen. For example he could have visited the recently erected Victims of Communism memorial in Washington, or at the very least have signed the condolence book at the Polish Embassy. But what did he choose to do instead? Play yet another round of golf. …
Robert Samuelson discusses government spending and the VAT.
…Europe’s widespread VATs aren’t models of simplicity. Among the European Union’s 27 members, the basic rate varies from 15 percent (Cyprus, Luxembourg) to 25 percent (Denmark, Hungary and Sweden). But there are many preferential rates and exemptions. In Ireland, food is taxed at three rates (zero, 4.8 percent and 13.5 percent). In the Netherlands, hotels are taxed at 6 percent. An American VAT would stimulate ferocious lobbying for favorable treatment. …
…A VAT is no panacea; deficit reduction can’t be painless. We’ll need both spending cuts and tax increases. A VAT might be the least bad tax, though my preference is for energy taxes. But what’s wrong with the simplistic VAT advocacy is that it deemphasizes spending cuts. The consequences would be unnecessarily high taxes that would weaken the economy and discriminate against the young. It would become harder for families to raise children. VAT enthusiasts need to answer two questions: What government spending would you cut? And how high would your VAT rates go?
In City Journal, Steven Malanga gives us an eye-opening look at the state employees’ unions that have brought California to its knees. He reviews how the unions got started and some of the stunts they have pulled. Below he explains some of the legislation and the politics that have created the fiscal crisis.
…Perhaps the most costly was far-reaching 1999 legislation that wildly increased pension benefits for state employees. It included an unprecedented retroactive cost-of-living adjustment for the already retired and a phase-out of a cheaper pension plan that Governor Wilson had instituted in 1991. The deal also granted public-safety workers the right to retire at 50 with 90 percent of their salaries. To justify the incredible enhancements, Davis and the legislature turned to CalPERS, whose board was stocked with members who were either union reps or appointed by state officials who themselves were elected with union help. …
…The second budget-busting deal of the Davis era was the work of the teachers’ union. In 2000, the CTA began lobbying to have a chunk of the state’s budget surplus devoted to education. In a massive rally in Sacramento, thousands of teachers gathered on the steps of the capitol, some chanting for TV cameras, “We want money! We want money!” Behind the scenes, Davis kept up running negotiations with the union over just how big the pot should be. “While you were on your way to Sacramento, I was driving there the evening of May 7, and the governor and I talked three times on my cell phone,” CTA president Wayne Johnson later boasted to members. “The first call was just general conversation. The second call, he had an offer of $1.2 billion. . . . On the third call, he upped the ante to $1.5 billion.” Finally, in meetings, both sides agreed on $1.84 billion. As Sacramento Bee columnist Dan Walters later observed, that deal didn’t merely help blow the state’s surplus; it also locked in higher baseline spending for education. The result: “When revenues returned to normal, the state faced a deficit that eventually not only cost Davis his governorship in 2003 but has plagued his successor, Arnold Schwarzenegger.”
Having wielded so much power effortlessly, the unions miscalculated the antitax, anti-Davis sentiment that erupted when, shortly after his autumn 2002 reelection, Davis announced that the state faced a massive deficit. The budget surprise spurred an enormous effort to recall Davis, which the unions worked to defeat, with the SEIU spending $2 million. At the same time, union leaders used their influence in the Democratic Party to try to save Davis, telling other Democrats that they would receive no union support if they abandoned the governor. “If you betray us, we won’t forget it,” the head of the 800,000-member Los Angeles County Federation of Labor proclaimed to Democrats. Only when it became apparent from polls that the recall would succeed did the unions shift their support to Lieutenant Governor Cruz Bustamante, who finished a distant second to Schwarzenegger. Taxpayer groups were euphoric.
But as they and Schwarzenegger soon discovered, most of California’s government machinery remained union-controlled—especially the Democratic state legislature, which blocked long-term reform. Frustrated, Schwarzenegger backed a series of 2005 initiatives sponsored by taxpayer groups to curb the unions and restrain government growth, including one that made it harder for public-employee unions to use members’ dues for political purposes. The controversial proposals sparked the most expensive statewide election in American history. Advocacy groups and businesses spent a staggering $300 million (some of it, however, coming from drug companies trying to head off an unrelated initiative). The spending spree included $57 million from the CTA, which mortgaged its Sacramento headquarters for the cause. All of the initiatives went down to defeat. …