Contrary to what various news outlets are reporting, President Obama is NOT proposing to cut government. The administration is proposing to take four independent federal agencies that specialize in corporate welfare – along with the Office of the U.S. Trade Representative – and combine them with corporate welfare programs at the Department of Commerce to form what I would argue should be called the Department of Corporate Welfare.
The Indianapolis Star recently profiled local boy makes good (handing out other people’s money) John Fernandez, the ex-Bloomington mayor and Obama fundraiser who now heads up the Economic Development Administration. A reference to an EDA taxpayer handout to a technology park in southern Indiana caught my eye:
Three weeks ago, a national commotion erupted when the Drudge Report headlined a story from the Heritage Foundation on the Obama administration’s implementation of a new tax on Christmas trees. I noted here that the 1996 legislation enabling the U.S. Department of Agriculture to implement the tax received most of its support from Republicans, including co-sponsor John Boehner.
Chris Edwards and I have repeatedly called for policymakers to get specific when it comes to spending cuts. Policymakers who want to cut spending should at least pick an agency or program and work to have it eliminated. Rep. Mike Pompeo (R-KS) has done this by introducing legislation to terminate the Department of Commerce’s Economic Development Administration.
When government officials come up with what they claim to be a wonderful new idea, I often think of an old Saturday Night Live skit from 1990 poking fun at commercials for blue jeans. The skit’s scene is a group of middle-aged buddies getting ready to play basketball in their new “Bad Idea Jeans.” Each guy optimistically announces a plan to do something that is actually a “bad idea.” For example, a character says “I don’t know the guy but I’ve got two kidneys and he needs one, so I figured…” and “BAD IDEA” flashes across the screen. (The skit can be watched here.)
When Rep. Jim Oberstar (D-MN) lost his bid for reelection in November, it brought to an end a congressional career that spanned nearly a half century. As a former chairman of the House Transportation Committee, Oberstar’s faith in the ability of the federal government to turn taxpayer water into wine was typical for a politician ensconced in the Washington Beltway bubble.
The Senate is set to take up legislation reauthorizing the Department of Commerce’s Economic Development Administration. A relic of the Great Society, the EDA was created to help economically depressed areas of the country. Today it’s just another example of an unnecessary, unconstitutional program that lingers around because politicians like to demonstrate to the public that they’re “doing something.”
President Obama has proclaimed today to be National Entrepreneurs’ Day. The president who has brought us regime uncertainty, more regulations, more government intrusion into the economy, more debt, and is proposing to raise taxes on productive businesses and individuals wants to celebrate entrepreneurship?
Alaska’s Juneau Empire recently examined the state’s Manufacturing Extension Partnership and found that its claims of success aren’t backed by reality. MEPs are a nationwide network of centers that provide technical and managerial assistance to small and medium-sized firms. Federal funds from the Department of Commerce pay for one-third of the costs of MEP centers, with the balance of costs being paid by state and local governments and the private sector.