Ironically, as Congress debates a bailout for the auto industry partly as a result of its massive, union-stimulated legacy costs, there are widespread expectations that Congress and the Obama administration will quickly try to push though the so-called “card check” legislation after the inaugural parties wind down.
The “Not-So-Big Three” Beg for a Bailout
The so-called “Big Three” domestic automakers, General Motors, Chrysler, and Ford have kicked into overdrive to lobby Congress to salvage what is left of their business operations using taxpayer funds. General Motors, which has entered negative cash-flow territory, is widely predicted to go belly-up unless it receives massive infusions of money. Analysts predict that GM’s demise would drag the other two down as well. After two days of contentious hearings on Capital Hill on November 18 and 19, auto executives departed without a deal and, at least for now, Congress has slammed the brakes on a straight bailout. Instead, lawmakers have tasked automakers with furnishing a detailed plan for long-term industry “viability and sustainability” before any legislative action is taken.
RAC-king Up Medicare Savings
The Centers for Medicare and Medicaid Services (CMS) released its most recent analysis of improper payments in the Medicare program on November 17, 2008. The good news is that vigorous cost recovery programs have helped whittle the percentage of improper payments in the Medicare fee-for-service program from 3.9 percent in FY 2007 to 3.6 percent this year.
New Grace Commission Needed
Just five days after his historic election, President-elect Obama vowed to review every Executive Order signed by President Bush during the past eight years. He made it clear that he intends to overturn some of them.
The President-elect should take his time during his review, as some Executive Orders are quite worthwhile. For example, on June 30, 1982, President Ronald Reagan issued Executive Order 12369, establishing the President’s Private Sector Survey on Cost Control, and asked private businessman J. Peter Grace to chair what has become popularly known as the Grace Commission. One hundred and sixty-one top executives, assisted by 2,000 volunteers from the private sector, contributed more than $75 million worth of their time and resources to examine all major federal programs and agencies. In January 1984, the Grace Commission’s work culminated in a 47-volume report containing 2,478 recommendations to save taxpayers $424.4 billion over three years.
Railing Against High-Speed Rail
On November 4, voters in California will have a dozen propositions on the ballot. There are four bond issues, including renewable energy, veterans housing, and children’s hospitals. The most expensive – Proposition 1A – would provide for a bond issue of $9.95 billion to establish high-speed train service linking Southern California counties, the Sacramento/San Joaquin Valley, and the San Francisco Bay Area. The network would eventually cover 800 miles and enable travel from Northern to Southern California at speeds of 220 mph. The official estimated cost is $45 billion.
Gasp!
In April 2007, the U.S. Supreme Court ruled 5 to 4 against the Environmental Protection Agency (EPA) in Massachusetts v. EPA. The lawsuit’s intent was to force the EPA to regulate CO2 and other greenhouse gases (GHG) as pollutants because of their supposed contribution to global warming. The basis of the suit was EPA’s contention in 2003 that it lacked the authority under the Clean Air Act (CAA) to regulate carbon dioxide (CO2).
European Resource Bank Update
Since 2004, Citizens Against Government Waste has been attending the European Resource Bank (ERB) Meeting. This year’s annual meeting of free-market think tanks was held in Tbilisi, Republic of Georgia, hosted by the New Economic School in the Republic of Georgia. Even though the ERB was originally planned to be held in Georgia because of the free-market reforms pushed by the country’s prime minister and president, Mikheil Saakashvili, events preceding the meeting (the Russian invasion) gave it even more urgency.
ACORN: Taxpayer Seed Money Underwriting Corruption and Voter Fraud?
Voter registration and vote fraud is once again front and center as November 4 approaches. As in previous elections, the Association of Community Organization for Reform Now, or ACORN, is at the center of political and legal storms.
2008 Prime Cuts is a Guide to Cut Spending
With the election on November 4th looming, both Presidential candidates have pledged to go through the budget line by line to find wasteful spending. Whoever wins could save a lot of time by reading Citizens Against Government Waste’s 2008 Prime Cuts, a list of 700 recommendations that would save $27 billion on one year and $1.2 trillion over five years. The new President will inherit a $455 billion deficit from fiscal year 2008 and be staring at a possible $1 trillion deficit for fiscal year 2009. There’s no room for new programs and plenty of incentive to cut those that are ineffective, duplicative, or wasteful.
Treasury’s Toxic Waste Dump…on Taxpayers
The move is unprecedented and historical; the price tag, up to $700 billion, is staggering; reaction in the nation’s capital has been fluid, chaotic, enraged and, now, perhaps obstructionist.