Some good news for local economies battered by the War on Coal

Commentary by James Shott

It is a common idea among many Americans that coal as a major industrial fuel is dead, or at least dying, and cleaner fuels, like wind and solar energy, and natural gas, are taking over. There is some truth there; but there are other influences on coal’s recent decline.

Less costly natural gas has become the fuel of choice in power plants and for other industrial uses, not because of the natural relative price of the fuels, but because of the cost of regulatory demands on mining and burning coal that require enormous investments that have priced coal higher than natural gas. Remember former President Barack Obama’s prediction: “So if somebody wants to build a coal-powered plant, they can. It's just that it will bankrupt them.”

These regulations produced the closing of more than 400 coal-burning power plants, which dropped the demand for coal, and altogether put 63,000 people in the coal industry, electric production industry and related support industries out of work in just the last few years.

At just the right time hydraulic fracturing (fracking) became popular, after lying mostly dormant since its first commercial application in 1957, and that produced a boom in natural gas production at attractive prices to compete with coal.

Many think burning less coal is a great thing, because burning coal fouls the air and is dangerous to our health, a “truth” which loses importance when you know the actual infinitesimal improvement in air quality derived from burning less coal.

However, considering all those factors, and paraphrasing a famous quote attributed to Mark Twain, the rumors of coal’s demise have been greatly exaggerated.

Of course, coal will never regain its former dominance among industrial fuels; time and technological/industrial evolution would just as certainly, although much more gradually, have eaten into coal’s popularity without the help of the Obama War on Coal.

But the regulatory adjustments of the Trump administration, the growing acceptance of the idea that the climate change/global warming mania is dramatically overstated, the reality that coal is still the best fuel for many things, the fact that many countries that do not have domestic coal supplies depend upon it for fuel, and the improvement in coal-burning technology all point to a continued market for American coal.

And let’s not forget that fossil fuels made up 81 percent of the fuels used to produce electricity in 2016, and coal is still the primary fossil fuel in electricity production.

Industry insiders, like Murray Energy CEO Robert Murray, see a partial resurgence in coal. “Coal will grow back,” he told Fox Business Network’s Stuart Varney. “But we’re in a decline right now.”

He went on to say that Trump “can bring back at least half of those [63,000 lost] jobs as the economy grows and as he ends the regulations on coal.” He noted that we have not had a level playing field in coal; “the government has been picking winners and losers.”

And he told Maria Bartiromo, also on Fox Business Network, former President Obama closed 411 coal-fired plants, and that the Clean Power Plan which Trump ended recently, would have closed 56 more plants. That, he said, would have caused a steep spike in electric rates.

“As [Trump] grows the economy [and] brings jobs back to America, coal will participate in that growth because we are one-sixth the cost of a windmill and one-fourth the cost of natural gas,” Murray said.

Rep. Bill Johnson, R-Ohio, said, “The coal industry knows and understands how to mine coal … and protect our environment. We don’t do it the way it was done 50, 60 years ago.”

Here are a few pieces of evidence:

* Reports from the Kentucky, West Virginia and Virginia coalfield regions say that mines are cranking back up and miners are being rehired. Train yards are seeing cars filled with coal moving through them in greater numbers.

* Bluefield State College recently held a Job Fair to immediately fill 85 open coal positions at Wyoming and McDowell county mines that mine coal used in making steel.

* Fox News reports that in Wise County, Virginia, a “long-awaited revival is under way in this beleaguered Central Appalachia community where residents see coal as the once and future king. Trucks are running again. Miners working seven days a week cannot keep up with current demand.”

* Coal exports through Hampton Roads last month rose more than 50 percent from last year's level, led by a nearly five-fold increase at Newport News' Pier IX, according to the most recent Virginia Maritime Association statistics. "A lot of mines are open again," said Harry Childress, president of the Virginia Coal and Energy Alliance."

Few if any argue that the coal industry will return to its former greatness, but it will certainly endure for many years at a lower level if natural forces are allowed to work, free of politically correct environmental engineering.

When you replace regulations resulting from selfish ideological goals with a business regulatory level based upon common sense, good things can happen.

And for areas of the country like ours, that have suffered so greatly from Obama’s over-zealous EPA, this is good news.

Cross-posted from Observations

Draining the swamp: American education is ripe for improvement

Commentary by James Shott

Among the many hot topics since Donald Trump won election as the 45^th President of the United States is America’s education system. Once at the top of the nations of the world in educating its young, America has lost ground.

Jon Guttman, Research Director of the World History Group, wrote in 2012 that “[a]s recently as 20 years ago, the United States was ranked No.1 in high school and college education,” and that “[i]n 2009, the United States was ranked 18th out of 36 industrialized nations.” He attributes that decline to “complacency and inefficiency, reflective of lower priorities in education, and inconsistencies among the various school systems.”

In 2010 at a Paris meeting of the United Nations Educational, Scientific and Cultural Organization (UNESCO), President Barack Obama’s first Secretary of Education, Arne Duncan, who served from 2009 through 2015, said this:

“Before the 1960s, almost all policymaking and education funding was a state and local responsibility. In the mid-1960s, the federal role expanded to include enforcing civil rights laws to ensure that poor, minority, and disabled students, as well as English language learners, had access to a high-quality education.

“As the federal role in education grew,” Duncan said, “so did the bureaucracy,” adding that the U.S. Department of Education often “operated more like a compliance machine, instead of an engine of innovation,” and that it concerned itself with the details of formula funding, and not with educational outcomes or equity.

He went on to say that the United States needed to challenge the status quo, and to close the achievement and opportunity gaps. Five years later, the U.S. still lagged behind many other countries.

The findings in the 2015 Program International Student Assessment (PISA), described by CNN as “a benchmark of education systems conducted every three years by the Organization for Economic Cooperation and Development (OECD), a grouping of the world's richest economies,” finds the U.S. education system improved since the last assessment in 2012 in the areas of science, math and reading.

However, that improvement leaves American students ranked behind the students of 24 other countries, among the 72 participating nations. Teens in Singapore, Japan and Estonia led the more than half a million 15-year-olds in the 2015 assessment, the primary focus of which was science, with math as the primary focus in 2012.

President Jimmy Carter signed the federal Department of Education into law in 1979, and since it became active the following year, American education has gotten worse, as measured by these international assessments. Marginal or negative performance is not unusual for federal agencies, however. President-Elect Donald Trump, like Ronald Reagan before him, has called for abolishing the Department of Education, citing the need to cut spending.

Looking back to the formative years of the republic, we find the Founders established only four cabinet level activities: foreign relations through the State Department; national defense through the Department of War (now Defense); taxation and spending through the Department of the Treasury; and enforcement of federal law through the Attorney General (now the Department of Justice).

The increase of federal agencies has no doubt produced some benefits, but does their performance justify the costs incurred?  They have produced huge growth in government control of our lives, and enormous expense. Today there are nearly four times as many cabinet level agencies as the Founders thought necessary.

The federal education effort has many sins on its list, but the primary sin is the shifting of control of local schools to Washington by dangling federal dollars in front of state school officials, which they can earn in return for giving up some degree of control over their schools. Federal influences also contribute to the infestation of standardized testing, which in moderation can provide benefits, but when a typical student takes 112 mandated standardized tests between pre-kindergarten classes and 12th grade, that is over the edge. Eighth-graders, it is said, spend an average of 25.3 hours on standardized testing.

Trump has named Betsy DeVos to become education secretary. Her bio explains that in education she “has been a pioneer in fighting to remove barriers, to enact change and to create environments where people have the opportunity to thrive,” and that her political efforts are focused on advancing educational choices. She currently chairs the American Federation for Children.

Like all of Trump’s cabinet selections so far, DeVos is seen as unqualified, criticized for her lack of experience in education and for pushing to “give families taxpayer money in the form of vouchers to attend private and parochial schools, pressed to expand publicly funded but privately run charter schools, and trying to strip teacher unions of their influence,” according to an unflattering story in The New York Times.

Perhaps the contrary is true, however. Given the lackluster performance of the Department of Education when run by apparently qualified people, someone with other strengths just might be able to turn the department into a positive influence on what is broadly considered a mediocre education system.

Schools are best operated by those closest to the students, so returning control to states and localities will be a good first step.

Cross-posted from Observations

Moving forward, with the election of 2016 in the rearview mirror

Commentary by James Shott

Tuesday, November 8 was a stunning repudiation of the eight years of Barack Obama’s presidency. It was a revolution. The media and the left are in a daze; they don’t understand what happened. They didn’t notice that the people were unhappy with the direction of the country, and the people showed them that they are in charge.

With a Republican president and Republican majorities in each House of the Congress, the stage is set for needed change, and the by-word for Republicans is: Restoration.

That is a tall order; given the deep slide the country has been in for so many years. Among items badly needing attention:

* Gain control of the borders and restore immigration laws and policies so that they benefit and protect the people of the United States. There is no obligation to accept immigrants or refugees, and if we choose to accept some, they must be carefully vetted to select those that will help America the most. Do away with sanctuary jurisdictions in the U.S.

* Reverse many/all of Obama’s Executive Orders that are either unconstitutional, attempts to circumvent Congressional treaty authority, or just bad ideas.

* Revitalize and build up the American military to its former strength and effectiveness.

* The IRS, EPA, DOE and other executive departments are staffed by many who, instead of serving the people, are serving political/ideological masters. Replace these people with true public servants.

* Repeal or heavily modify the Affordable Care Act to increase private sector insurance coverage and encourage more choices and more competition among providers of insurance and health care, and to lower prices. Get the government out of healthcare as much as possible.

* Simplify the tax code and adjust rates, and reduce regulations. These things impair business development, stifle job creation, and that make moving jobs and companies overseas more appealing.

*Restore the constitutional balance of power and reverse Congress’ unconstitutional transfer of law making through regulations by executive agencies and departments.

* Vacancies on the Supreme Court and other federal courts must be filled by people who not only understand the original language and intent of the Constitution, but will honor it. Changes to the Constitution must occur through the process outlined in the Constitution itself, not through unelected activist judges.

* The election process has many weaknesses that allow the dead to vote and other problems that can be utilized for illegal purposes. Furthermore, there is simply no legitimate reason to not implement a photo ID requirement to vote in federal elections. A photo ID is required to buy alcohol or cigarettes; open a bank account; apply for food stamps, welfare, Medicaid/Social Security, unemployment, a mortgage or a job; drive/buy/rent a car; get on an airplane; purchase a gun; adopt a pet; rent a hotel room, and many other things. But not to vote. Clean up voter rolls, be more vigilant and punish cheaters.

* A balanced budget is not immediately possible, but begin to decrease the size and cost of government and start reducing the gargantuan National Debt.

* Congress was not intended to be, and should not be, a career, and lengthy Congressional service has produced an unhealthy culture. The Framers envisioned citizen legislators, people who did their elected job for part of the year and worked their jobs at home the rest of the year, and after a term or two returned to civilian life. We need to move toward that environment.

* And last, but certainly not least: Uphold the Rule of Law; eliminate the double standard: Government workers at all levels must be held to the same legal standards as the people who pay their salaries. This includes such folks as the IRS’s Lois Learner and, yes, Hillary Clinton. It is true that the defeat in the election was a true blow to her, and yes, that can be taken into account. However, as Secretary of State, Clinton breached security and put at risk sensitive national security information, destroyed evidence, and lied to Congress about it.

Others who have done similar things have suffered criminal penalties for their wrongdoing; retired Army General David Petraeus and active-duty Petty Officer First Class Kristian Saucier, and many others were punished through the legal system for security breaches. So, too, must Clinton be.

FBI Director James Comey introduced a new element into criminal law when he decided Clinton should not be indicted for her wrong doing because he was unable to establish the intent to breach security. She thus escaped justice where others did not. However, when lawyers for Saucier told the court their client did not intend to breach security, as Comey asserted about Clinton, the judge rebuked them for using that defense.

She should not be pardoned; the legal system exists to find and punish criminal behavior. If appropriate for her deeds, she should be charged, and absent a guilty plea, tried. If guilty by plea or by trial, a large fine and/or probation would be appropriate. It’s only fair: equal justice under the law. Otherwise, it will be a huge statement that some are above the law.

There is much to be done. Let’s get started.

Cross-posted from Observations

Commentary by James Shott

Those who lived in or near the southern West Virginia and/or southwest Virginia coalfields during the peak of the coal business in the 50s and 60s know that state and local economies thrived because of the tens of thousands of people employed by mining companies and the dozens of companies that supported the industry.

Bluefield, WV’s Norfolk and Western Railway yard was always filled with coal cars, many of them full of the world’s most widely used fossil fuel, that were bound for Norfolk, VA’s port, or ready to be unloaded into trucks for delivery. The rest were empty, heading back into the coalfields to be refilled and brought back for distribution.

They remember the bustling downtown that was the financial, shopping and recreational center of the region’s coalfields, and Bluefield’s population of well over 20,000 residents during the time of peak coal. These are valued memories of the good times.

Today’s population is half that size, and the rail yard is often empty. To those who have seen first-hand the decline of the industry and its effects on local communities, the industry’s decline is a very real and painful thing.

The decline began with natural technological advances, as mechanization gradually began putting hundreds of miners out of work. Over time other forces developed, affecting the industry, including the very recent rise of cheap natural gas. Through all of that, there was always a market for coal.

But the federal government’s assault on coal through excessive environmental regulation, spurred by the hotly debated idea that burning coal pours too much carbon dioxide – a gas essential for life on Earth – into the atmosphere, is the greatest problem. President Barack Obama put this attack into high gear. However, today our air is cleaner than it’s been for 100 years, mostly through evolving technological improvements.

Cloistered away in their comfortable offices in Washington, DC, our public servants frequently have no idea what life is like for those toiling away to pay the taxes that fund their salaries. Perhaps if they got out of Washington more, they would understand the problems they create for the people they serve.

This may be the case with Energy Secretary Ernest Moniz, who at the invitation of Sen. Joe Manchin, D-W.Va., finally visited the state after many invitations over the eight painful years of the Obama administration. But while in the state last week, Moniz suggested there is no war on coal, arguing to the contrary that the Obama administration is working to keep coal as an important part of a low-carbon energy future. He also said that cheap natural gas prices are primarily responsible for coal’s downturn.

The absurd idea that there is no “War on Coal” today would be hilarious, if the reality wasn’t so tragic, and the suggestion that the very recent drop in natural gas prices is the principal reason for coal’s decline is simply false.

This general situation was foretold by Barack Obama back in the 2008 campaign: “So, if somebody wants to build a coal plant, they can — it’s just that it will bankrupt them, because they are going to be charged a huge sum for all that greenhouse gas that’s being emitted,” Obama declared.

Assuming that Moniz has the capacity to recognize the misery the administration for which he works has caused for this region, or really cares about the people affected by its policies, visiting West Virginia much earlier in the administration’s tenure might have made some difference.

Hillary Clinton is on that same path. While campaigning in Ohio earlier this year, she said, “We’re going to put a lot of coal miners and coal companies out of business.” Trying to make that sound better, she said she favored funding to retrain those put out of work, but she didn’t say what kind of jobs and how many of them are currently waiting for trained workers.

Not long thereafter, while campaigning in West Virginia, she was asked about that comment by a tearful out-of-work coal miner, to which she responded that what she meant was that coal job losses will continue, according to the Daily Caller. See the difference?

Obama’s energy policy is like putting a square peg in a round hole. If you want to put a square peg in a round hole, take some time and think it through: You should gradually and gently reshape the square peg so it will comfortably and appropriately fit into the round hole. Obama’s method is to place the peg on top of the hole and beat it with a hammer until enough of the corners are destroyed so that the peg will go into the hole. And even then, it is a poor fit.

Just as horse-drawn wagons and carriages gave way to motorized vehicles when they came to be, coal’s role as a primary fuel would have changed as better methods evolved. Such a process would have been not only more humane and less destructive, but infinitely smarter than what has transpired.

Through the centuries humans solved life’s problems and improved their lives through applied intelligence. Somehow, they managed to do this without Barack Obama and the EPA.

Cross-posted from Observations

Lipstick on a pig: Administration putting a spin on the U.S. economy

Commentary by James Shott

It is natural for politicians to put things in the most favorable light, and the worse the general situation, the greater the need to do so. That serves as an appropriate introduction to the White House’s June economic analysis, which is summarized thusly: “The economy added 287,000 jobs in June, as labor force participation rose and the broadest measure of labor market slack fell.” As far as that statement goes, it is true.

That new jobs number is a decent number – the best jobs figure since October – and miles ahead of May’s revised number of only 11,000 new jobs. But it is not an outstanding number, and is only one of several really significant numbers.

Back in December 2009, six months after the end of the recession and 11 months into Barack Obama’s first term, economist Paul Krugman said that 300,000 new jobs each month were necessary to make up the job losses of the recession over the next five years, so the June figure falls short of that number. In the weak Obama recovery new job production has only met or exceeded 300,000 six times in 89 months. The last was in November of 2014 at 331,000.

Whether the 287,000 number holds up after revision we won’t know until August. May’s preliminary number was revised down by more than two-thirds to a mere 11,000; therefore August may show a downward revision, an upward revision, or a number that is pretty close to the preliminary figure.

Other relevant numbers from the Bureau of Labor Statistics (BLS) data set for June include an increase in the U-3 unemployment rate, the one President Obama prefers to cite, from 4.7 to 4.9 percent. Despite the increase, the U-3 rate still looks good because it discounts all those marginally attached to the labor force that involuntarily work part-time instead of full-time, or have given up looking for work because they cannot find a job. Those workers are included in the U-6 rate, which more accurately represents reality, and stood at 9.6 percent in June, and improved one-tenth of a percent since May, as some of the previously disaffected workers started seeking employment again.

Even so, the Labor Force Participation rate was still at the late-70s level of 62.7 percent. From 66.0 percent in December of 2007 when the recession began, the trend in the participation rate has been steadily downward and has been below 63 percent since March of 2014. The labor force is made up of those age 16 and older that are working, looking for a job, and not in prison or in the military, and totaled 94,517,000 people last month. That means that 56,228,000 working age Americans are not working, and not in the military or in prison.

In June, 1.8 million persons were marginally attached to the labor force. These are individuals who wanted to work, were available for work, and had looked for a job sometime in the prior 12 months, but were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Another 5.8 million individuals prefer full-time employment, but are working part time because their hours had been cut back or because they haven’t been able to find a full-time job.

The BLS reported, “Among the major worker groups, the unemployment rates [U-3] for adult women (4.5 percent) and Whites (4.4 percent) rose in June. The rates for adult men (4.5 percent), teenagers (16.0 percent), Blacks (8.6 percent), Asians (3.5 percent), and Hispanics  (5.8 percent) showed little or no change.”

The 9.6 percent U-6 rate tells one part of the story, but the actual harm of the administration’s policies that keep the economy from cranking up are another story.

“Today’s jobs number can’t hide the ongoing struggles facing the country’s main jobs producers – small businesses – which are overwhelmed by over-taxation, over-regulation, and a lack of access to credit,” said Jobs Creators Network (JCN) president Alfredo Ortiz. “And it shouldn’t distract us from an underwhelming labor force participation rate—still the lowest figure since the 1970s.”

National Federation of Independent Business president and CEO Juanita Duggan commented, “Each month our survey shows that small business owners are trying to hire qualified workers,” and, “The job openings are there, but owners are not going to invest in new employment when labor costs are becoming insurmountable, and the political climate is wildly uncertain.”

All the way back in November of 2010 President Obama was already claiming a “new normal” for the economy: “What is a danger is that we stay stuck in a new normal where unemployment rates stay high,” he said on CBS “60 Minutes.”

Today, with a real unemployment close to 10 percent, Obama may be viewed as a pretty good prophet. However, rather than seeing the future, he engineered it, and the term “new normal” is much less a reality than an excuse. As the JCN’s Ortiz noted, high taxes, rampant and intrusive regulation and limited credit do not a good recovery make.

America deserves better. November’s election provides the opportunity to elect as president someone who understands job creation.

Cross-posted from Observations

The Constitution provides states with a high degree of sovereignty

Commentary by James Shott

When the founders of our young nation realized that the original governing document, the Articles of Confederation, was insufficient, the task of creating a better one began. Ultimately, during the process of creating and ratifying the United States Constitution to replace the Articles strong sentiment existed for specific rights to be guaranteed to Americans, and the Bill of Rights was created, consisting of the first 10 amendments to the Constitution.

As time passed the strength of some of those first 10 amendments has been weakened, and some are under constant attack. As our once-limited national government has grown, the rights and freedoms guaranteed by the Constitution and the Bill of Rights have diminished.

The Bill of Rights guarantees such things as freedom of speech and religion, the keeping and bearing of arms, freedom from unreasonable searches and seizures, and other protections from a government set on tyranny.

The several states, which represented the interests and will of their citizens, created the national government, and the Tenth Amendment emphasized that the states had protection from the acquisition of powers by the national government outside the limits set forth in the Constitution.

During the process of replacing the Articles of Confederation with the Constitution, a series of essays known as The Federalist Papers stressed that under the Constitution’s governmental structure, the principle of popular sovereignty would continue, with Constitutional protections against the national government trampling on the rights reserved for the states. This was known as “federalism.” The national government has those powers assigned to it; the states or the people have those powers not assigned to the national government, nor prohibited by the Constitution.

The Ninth Amendment strengthens the Tenth, but more than 230 years later, who can argue that the Tenth Amendment's proscription against a power grab by the federal government has actually been respected?

Arguably, the Environmental Protection Agency is the greatest offender of 10th Amendment protections, as it writes regulations and rules with the force of law that have not been made into law by the Congress.

Or maybe it is the Patient Protection and Affordable Care Act – Obamacare – that is a law made by Congress, but shoves Uncle Sam over the edge of the big government cliff. Imagine Washington, Jefferson, Madison and the rest of the Founders agreeing that the national government was allowed someday to impose a healthcare system on the people of the several states, even if it worked as advertised.

The idea that the federal government has the authority to change the operations of hundreds or thousands of individual insurers and healthcare providers in 50 different states, each serving its own separate customer base, into a single system controlled by Washington is as anti-Constitution as it gets.

Other areas of Tenth Amendment abuse are same-sex marriage and abortion, both of which originally were state issues, until the federal government found some way to finagle a national interest in these issues.

Until the Roe v Wade case of 1973, abortion had been a state issue, but the Supreme Court ruled that bans on abortion were unconstitutional on a “right to privacy” basis discovered in the due process clause of the Fourteenth Amendment. And the federal government was never involved in marriage issues until 1996 when the Defense of Marriage Act was passed.

The Constitution also protected state sovereignty by the way Congress was organized. The House of Representatives, frequently referred to as “the people’s house,” consisted of Representatives directly elected by the citizens of the Congressional Districts. Members of the Senate, on the other hand, were to be elected by the state legislatures, and therefore senators’ loyalty was to the government of the state more than to its citizens.

This protection vanished, however, when the 17th Amendment was ratified in 1913, and now the citizens of the states also elect Senators, in addition to the Representatives. Members of the Senate no longer have any special reason to protect the interests of the government of the state they represent, and that shifts the governing balance between the states and the federal government toward the federal government.

The result often is that federal mandates, about which the states themselves have nothing to say, not only can and do intrude on state sovereignty, but force states to pay for their implementation, as well.

Some people think these changes are just fine, such as those who have bought into the scare tactics of the climate change catastrophe gang, those who support abortion and same-sex marriage, and those who generally like big government and have never stopped to think how miserable they may be in the future if this big-government mania isn’t stopped.

There is some good news on this issue: States are fighting back against federal over-reach. Twenty-four states filed a lawsuit asking a federal court to strike down the Environmental Protection Agency’s new source performance standards that effectively prohibit the construction of new, coal-fired power plants. And 12 states are fighting the Obama administration’s LGBT rights mandates.

If the courts do not support restoration of state sovereignty in these and other issues, the states will have no other choice but to refuse to follow intrusive federal measures.

Cross-posted from Observations

Commentary by James Shott

For four years, an organic farmer in Indiana was harassed when he supplied raw milk to the local organic co-ops. What prompted this action was what the Goshen News reported in 2010 as an outbreak of campylobacter bacterial infections “that might be traceable to the Forest Grove Dairy.”

Obviously, if bad milk makes people sick, health departments need to be involved, however, farm owner David Hochstetler told the paper at the time that health departments had not visited the farm to investigate, and he was never found to have sold bad milk.

Despite never having his product tied to the outbreak, Hochstetler’s farm was subjected to frequent inspections and harassment by two federal agencies, the Food and Drug Administration and the Department of Justice, actions believed to be aimed at closing down the dairy farm. And then Elkhart County Sheriff David Rogers responded to Hochstetler’s complaint, realized there was no justification for such harassment, and stepped in and blocked this over-reach from the federal government.

Rogers wrote to the DOJ telling them he would take action, including “removal or arrest” of federal agents, if the inspectors came without a signed warrant specifying probable cause and giving a clear reason justifying their invasive searches.

Rogers explained in the local newspaper, “My research concluded that no one was getting sick from this distribution of this raw milk. It appeared to be harassment by the FDA and the DOJ, and making unconstitutional searches, in my opinion. The farmer told me that he no longer wished to cooperate with the inspections of his property.”

You may be wondering why federal agencies were involved in what clearly was a local/state issue. This is not unusual.

The Daily Caller reported a year ago on the Environmental Protection Agency’s (EPA) Waters of the United States rule that critics say “would allow the agency to regulate waterways previously not under federal jurisdiction, including puddles, ditches and isolated wetlands.”

The EPA may be the agency that has done the most damage to the U.S. economy and business operations with its over-zealous and intrusive mandates, concerning such things as incandescent light bulbs, toilets that use “too much” water, limiting wood burning and charcoal use, and now extending its tentacles to regulating temporary water collections on private property.

Many states are growing tired of these overreaches. A bill introduced in the Indiana State Legislature reflects that state’s frustration. The bill nullifies all of the EPA’s regulations and places all environmental protection authority with the state’s Department of Environmental Management. And 24 states, including Indiana, have filed a lawsuit in federal court to strike down the new source performance standards affecting new coal burning power plants.

The EPA’s costly excesses and other excessive behaviors by administrative agencies trample all over the plain language the Founders deliberately wrote into the U.S. Constitution through the Tenth Amendment, which states: “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.”

However, it is the wont of federal bureaucracies to grow like weeds, often with the tacit approval of our elected representatives in Congress, and not infrequently at their behest. Bureaucrats isolate themselves into protected enclaves extending their reach beyond that which is appropriate. They often do serious harm to their bosses, the American people, usually without accountability for their misdeeds.

Having escaped the heavy hand of King George only a few years before, the Framers of the U.S. Constitution sought to create a document establishing a new government for the United States that could not evolve to be as oppressive as Mother England had been; a government “of the people, by the people and for the people.” It was no accident that the phrase “the people” is mentioned five times in the Bill of Rights.

The Legal Information Institute of the Cornell University Law School explains: “The U.S. Constitution grants the federal government with power over issues of national concern, while the state governments, generally, have jurisdiction over issues of domestic concern. While the federal government can enact laws governing the entire country, its powers are enumerated, or limited; it only has the specific powers allotted to it in the Constitution.”

Some constitutional scholars and experts have described the Tenth Amendment as the Bill of Rights’ “catch-all” amendment, a strong reminder to federal lawmakers and officials that the federal government has strict limits, and everything outside those limits is under the control of the states.

The checks and balances of our governmental system give Congress the duty and the authority to oppose excessive behavior by the executive branch. The federal budget is an excellent tool for this purpose. It is shameful that these elected representatives have so often and for so long failed to protect their own Constitutional authority and, more importantly, the best interests of the people they were elected and sworn to represent.

The failure of Congress to oppose over-zealous federal agencies means the states have no other choice but to strongly oppose the unconstitutional federal intrusions, either through legal action, or by actions like that of Sheriff Rogers.

Cross-posted from Observations.

Commentary by James Shott

The 2016 Index of Economic Freedom shows that the United States has climbed one notch from 12^th place to 11^th among the 186 nations of the world that were surveyed and rated.

The Index is an annual guide published by The Wall Street Journal and The Heritage Foundation, and rates nations for labor freedom, business freedom, and fiscal freedom. There are 10 different measures inside those three major groupings. Data used is from 2014, and was compiled and analyzed last September.

The nations with more economic freedom than the U.S. are, starting with first place: Hong Kong; Singapore; New Zealand; Switzerland; Australia; Canada; Chile; Ireland; Estonia; and the United Kingdom.

Ranking 11^th over all and 2^nd among the three North American nations, the U.S. “remains mired in the ranks of the ‘mostly free,’ the second-tier economic freedom status into which it dropped in 2010,” the introduction to the report states. In seven of the past eight years Americans have seen their economic freedoms decline, and this year’s score equals their country’s worst score ever in the Index. At 75.4 out of 100 points, the U.S. has seen its score drop 0.9 since 2012, and from 80.7 since 2009.

“America’s historically vibrant entrepreneurial growth is significantly hampered by intrusive, expensive, and often ineffective government policies in areas ranging from health care to energy to education,” the report states. “Government favoritism toward entrenched interests has hurt innovation and contributed to a lackluster recovery and stagnant income growth,” even though a private sector energy boom has put the U.S. at the top of the world’s producers of oil and gas.

While America’s 6.2 percent unemployment rate in 2014 has improved, GDP growth was an unimpressive 2.2 percent over five years from 2009 to 2014. Our public debt then was nearly 105 percent of national GDP, which means that if every dollar of production – the value of all final goods and services produced in a year – went to pay down the debt, we still would have debt.

One small piece of good news is that in the Rule of Law category the “Freedom From Corruption” rating rose from 72 to 74 from the prior year, but the “Property Rights” rating dropped 10 points from 90 to 80, and this year produced the lowest ranking of the American people’s trust in government in the last 10 years, based on polls taken in 2015, where 75 percent of respondents said they believe corruption is widespread in the government and in government regulation of business.

Taxation continues to bedevil America’s freedom standing, with more than one of every four dollars of domestic income being taken by taxes, the U.S. having one of the highest corporate tax rates on the planet at a punishing 35 percent, and the top individual income tax rate of 39.6 percent. Government spending runs just short of 40 percent of GDP, and the size and scope of the government remains too big and too intrusive. The “Government Spending” and “Fiscal Freedom” ratings each fell, 59.6 to 54.7 and 67.5 to 65.6 respectively.

The nation saw substantial declines in the Regulatory Efficiency category, where each sub-category saw declines: Business Freedom - 91.9 to 84.7; Labor Freedom – 95.1 to 91.4; Monetary Freedom – 84 to 77. The report notes that “180 new major federal regulations have been imposed on business operations since early 2009 with estimated costs of nearly $80 billion,” explaining that the regulations themselves are not rigid, but that policies, such as excessive occupational licensing, restrict employment opportunities, and “damaging monetary policies, tangled webs of corporate welfare, and various subsidies” have affected the economy negatively.

The U.S. was heavily affected in two of the three sub-categories of Open Markets, where “Trade Freedom” remained essentially flat at 87 points, but “Investment Freedom” and “Financial Freedom” each took a 10-point hit, falling from 80 points to 70. The report notes that while “domestic regulations have been emerging only gradually, the financial reforms adopted in 2010 have increased both costs and uncertainty.”

Even though the U.S. moved up one position among the 186 nations, being 11^th instead of 12^th does not provide enough for even Donald Trump to brag about, especially in view of the fact that the overall score fell nearly one point and that the U.S. lost ground in 8 of the 10 sub-categories contained in the Index. And its position in the second tier may prompt a drive to change our “land of the free” motto to “land of the mostly free.”

The importance of this report is not so much the U.S. ranking, but the continued commitment of its government to policies contrary to the values that made America exceptional and free. This perspective is not merely the view of conservatives and libertarians, but also of someone who has seen this same scenario up close and personal.

Filmmaker and American citizen Agustin Blazquez saw this same theme play out in his native Cuba, and warns, “Wake up, America!” Blazquez sees the same radical shift happening in America that turned Cuba into a communist country.

This ought to be a call to action, but thus far all of those have failed.

Cross-posted from Observations

America’s long, difficult trek from tyranny and oppression to …

Commentary by James Shott

North America’s colonists were necessarily daring and independent, otherwise they would not have ventured to the New World. Being so far from Mother England, they needed and were able to establish colonial governing bodies, which could levy taxes, muster troops, and enact laws.

As time passed the colonies strengthened, and began seeing themselves as independent states, and their obedience to and dependence on the British Crown was receding into the background.

As the future leaders of the United States grew into those roles in the colonial legislatures, they also studied the ideas of the Enlightenment: the social contract, limited government, the separation of powers and the consent of the governed, ideas at odds with the heavy hand of King George.

The colonies found many things imposed by England objectionable, such as the Sugar Act that increased duties on sugar imported from the West Indies; the Currency Act that devalued Colonial currencies; the Quartering Act that forced colonists to house and feed British soldiers if necessary; the cruelty of the British Army at the Boston Massacre; the Stamp Act taxing many common items; and the Tea Act that spawned the Boston Tea Party.
 

Nearly two and one-half centuries later we are again facing a heavy hand, this time not from a monarch, but from the government created by those colonists after they had had enough heavy handedness, and fought for and won their freedom.

Our government’s objectionable activities from the recent past include an inspector general’s report showing that the IRS had targeted conservative groups for lengthy and onerous review of their applications for non-profit status. And cases such as when an Army veteran heard banging on his door before dawn, then he and his two young boys spent several hours in police cars in their jammies as a Department of Education SWAT team searched his home because his wife, who didn’t live there any more, had defaulted on her education loans.

A program of the Department of Justice called “Operation Chokepoint” is used to put the financial squeeze on legal industries the administration doesn’t like, such as firearms sellers and payday lenders.

Another program known as civil asset forfeiture allows police to seize, and then keep or sell, any property they allege is involved in a crime. Owners need not ever be arrested or convicted of a crime for their cash, cars, or even real estate to be taken away permanently by the government.

Wonder how the colonists would have reacted to these outrages had they been perpetrated by King George?

Today, the federal government has its fingers in virtually every aspect of our lives, and often it is very involved. Its activities no longer are effectively limited as directed by the U.S. Constitution. The federal government largely controls education at the local level, regulates mud puddles on private property, and now has taken control of the way Americans receive their healthcare.

With the force of law it now espouses positions based not upon Constitutional principles, but based upon ideology and political impulses.

One of the most ominous to date is the effort announced earlier this month to use the full force of the federal government, which has adopted one side of a vigorous debate on the effects of humans on the world’s climate, to criminally charge businesses that argue against the government’s chosen position with racketeering under RICO laws.

“Treating climate change as an absolute, unassailable fact, instead of what it is — an unproven, controversial scientific theory — a group of state attorneys general have announced that they will be targeting any companies that challenge the catastrophic climate change religion,” say Hans von Spakovsky and Cole Wintheiser in The Daily Signal.

Ignoring America’s principle of freedom of thought and speech, New York Attorney General Eric Schneiderman said last month, “The bottom line is simple: Climate change is real,” and he is threatening to pursue companies he claims are committing fraud by “lying” about the dangers of climate change “to the fullest extent of the law.”

The coalition “AGs United For Clean Power” consists of 15 state attorneys general as well as the AGs of the District of Columbia and the Virgin Islands. In addition to Schneiderman are Kamala Harris, California; William Sorrell, Vermont; Mark Herring, Virginia; Maura Healey, Massachusetts; Brian Frosh, Maryland; George Jepsen, Connecticut; and Claude Walker, the Virgin Islands, and representatives from Illinois, Iowa, Maine, Minnesota, New Mexico, Oregon, Rhode Island, Washington State and D.C.

Unsurprisingly, sixteen of the seventeen are Democrats, while the Virgin Islands AG is an independent. And no farcical climate inquisition would be complete without the participation of former vice president and climate change beneficiary Al Gore.

U.S. Attorney General Loretta Lynch admits that the Justice Department is discussing the possibility of pursing civil actions against climate change doubters, and that the FBI has been asked to consider if it meets the criteria for federal law enforcement to take action. Tyranny rears its ugly head.

When the political left cannot prevail through the strength of its arguments in the arena of free ideas, it resorts to force. That is unconditional surrender, a testament to the failure of liberalism as a practical ideology.

Cross-posted from Observations

Washington warned us. We forgot his warnings, and are paying for it.

Commentary by James Shott

In his farewell address at the end of his second term as president on September 19, 1796, George Washington warned the nation of the problems with political parties “in the most solemn manner against the baneful effects of the spirit of party generally.”

The “spirit of party” has its roots in the “strongest passions of the human mind,” he said, and exists in all governments, to varying degrees, being stifled, controlled or repressed in most. But even in the young nation he had led, perhaps because of the high degree of freedom provided by its Constitution, “is seen in its greatest rankness, and is truly their worst enemy.”

Looking across the political landscape today, Washington’s words are brought to life. And he can objectively address the issue of political parties, as he is the only president to have had no party affiliation. Washington had to be persuaded to seek a second term, and refused to run for a third term, despite great popular support for him to do so.

Essentially, parties are dangerous because they are collections of persons who share passions, and inevitably passion creates ideas that do not fit within constitutional guidelines.

Perhaps there exists a circumstance that prompts the party to encourage expanding the meaning of the General Welfare Clause to deliver “welfare”; to imagine the need for a federal department to dictate the kinds of light bulbs or toilets we should buy; or to reinterpret the plain language of the Second Amendment “for the common good.” None of these actions are legitimate under the processes set forth by the Constitution. Such ideas may highjack party members, and shift their attention from strict adherence to the principles of the Constitution.

“Well,” the members may say, “the Founders could not have foreseen this development. The Constitution does not address this.” The party starts to rationalize how to achieve these things without following the methods provided to change the Constitution.

Maybe this perspective results from a sincere desire to fix a significant problem; maybe it is merely means to an end. Either way, it is a step away from the intent and the letter of the law of the land. Devising circuitous routes to somehow find a way to do what the Constitution does not say you may do is objectively wrong, yet our government has grown absurdly large and expensive and immorally oppressive as a result of precisely these types of activities, and is what Washington warned of.

 “[T]he common and continual mischiefs of the spirit of party are sufficient to make it the interest and duty of a wise people to discourage and restrain it,” Washington advised. “It serves always to distract the public councils and enfeeble the public administration. It agitates the community with ill-founded jealousies and false alarms, kindles the animosity of one part against another, foments occasionally riot and insurrection. It opens the door to foreign influence and corruption, which finds a facilitated access to the government itself through the channels of party passions.”

America’s elected leaders have seemed to be more concerned with the activities of political parties – the spirit of party – than with focusing on the principles of the governing document. This has made a mishmash of a once-clearly defined government structure. It is a tribute to the government structure the Founders’ created, however, that even after these attacks on its foundations, it still remains singularly better than any other nation on Earth. That may not be true for much longer, however.

Were all Americans focused laser-like on following the U.S. Constitution when addressing national issues, would political parties form? Would there be a need for a formal organization to defend the Constitution? Does not the very existence of political parties signal motives other than strict adherence to the Constitutional principles?

The idea of originalism, the dedication to the language and intent of the Constitution, will draw strong disagreement from those that maintain that a document created more than 200 years ago cannot possibly apply satisfactorily to today’s circumstances. Which proves Washington’s point rather well, as it is primarily ideologically driven political parties and their adherents that want to loosen the specific language espousing the principles of the Founders, so that it means what they want it to mean, rather than what is says.

Neither major political party any longer strongly represents and defends the founding principles. The Republican Party – which once fairly strongly defended the founding principles, and still outperforms the Democrats in that category – has let spirit of party rule its integrity.

The leadership of the Democrat Party long ago adopted liberalism/socialism in stronger and weaker forms, and many/most of its goals run headlong into Constitutional prohibitions.

So liberals in both parties have decided that rather than properly change the Constitution through amendments or a constitutional convention – either of which is a long, difficult path to follow – they will instead sneak through the back door, pretending that the Constitution is outdated and must therefore be reinterpreted, all the while aided in their subversion by like-minded liberal judges.

It is unlikely we can do away with political parties, but given what they have done to the country, “wouldn’t it be loverly?”

Cross-posted from Observations

The Paris climate conference focused on fear, not climate reality

Commentary by James Shott

The Paris climate conference is now over. The Christian Science Monitor reported on Saturday that the rap of the chairman’s gavel “signaled unanimous – if not unanimously enthusiastic – support from all parties engaged in this year's UN climate talks. It comes at the end of a year scientists say will likely be the hottest ever on record.”

After all the time involved and the carbon dioxide (CO2) produced getting the hundreds of representatives from 196 nations all in the same place, and then back home again, the agreement does not put the world on a path toward what scientists regard as a safe level of global warming, but the agreement sets forth a clear path for countries to identify their own targets for CO2 reduction. Ultimately, participants want a global carbon-free environment by 2060, at the latest, meaning that every car, building, plane, ship, train, and power plant would have to operate without burning any fossil fuels.

Days prior to the closing U.N. Secretary-General Ban Ki-Moon told the ministerial session, “The clock is ticking toward climate disaster,” and former Vice-President Al Gore compared the need to combat climate change to the abolition of slavery, giving women the right to vote and the civil rights battle. Gore said, “The right choice is to safeguard the future for the next generation and for the generations to come.”

There were scary stories of rising sea levels, causing residents of low-lying areas like the Marshall Islands to lobby strenuously for the agreement, while droughts, flooding, and other extreme weather events were predicted to increase elsewhere on the planet if CO2 emissions aren’t reigned in. And to make sure to attract the attention of enough third world countries, billions of dollars in support for affected economies is on the table, supposedly to be paid by the rich countries, like the United States.

The whole world is concerned because of the idea that too much CO2 in the atmosphere will cause catastrophes sometime in the distant future. Carbon dioxide is what plants that produce oxygen for us to breath live on.

All of this scare mongering tended to overshadow the dismal record of climate predictions and data manipulations from the not-so-distant past that casts doubt on the need for turning the energy universe upside-down. Here are some of the scary predictions of global warming catastrophes that did not come true:

* By 1980 all of the important animal life in the sea will be extinct.
* By the year 2000 the United Kingdom will be simply a small group of impoverished islands, inhabited by some 70 million hungry people.
* The world will be eleven degrees colder by the year 2000.
* By 1985, air pollution will have reduced the amount of sunlight reaching Earth by half.
* A general warming trend over the North Pole is melting the polar ice cap and may produce an ice-free Arctic Ocean by the year 2000.
* Within a few years children just aren't going to know what snow is.

Add to those failed prognostications a global warming hiatus for at least16 years, according to the British Met Office, and energetic disagreement about man-caused climate change among climate scientists, and the agreement looks like a gigantic global shakedown.

As an example, while Barack Obama is busy regulating America’s coal-fired electricity generating plants out of existence, China is constructing new plants. According to the Heritage Foundation’s Nicolas Loris, we should be wary of China’s commitment to reduce emissions. China is by far the world’s largest emitter of greenhouse gases, and is currently constructing 350 coal-fired power plants and has plans to build another 800.

The Wall Street Journal notes, “In 2013 China burned 3.9 billion tons of coal, almost as much as the rest of the world.” Obama seems to think that harming the U.S. economy by shutting down U.S. fossil fuel-burning facilities will negate China’s feverish coal-burning economy. Loris asks pointedly, “This is the country that we’re going to trust to peak emissions 15 years from now?” 

And trust is the operative word: all countries are on scouts honor to do what they have said they will do, without official oversight or penalties.

According to the BP Statistical Review of World Energy 2013 “Historical Data Workbook,” 87 percent of the energy mankind uses every second comes from burning fossil fuels.

People who live in cold climates use them to warm their homes, and people who live in warm climates use them to cool their homes. Fossil fuels are used to plant and harvest crops that feed people, and are used to transport food from places where food is produced to places where it is needed and wanted. They are used to light the darkness, to entertain us, transport us, diagnose disease, communicate with each other, mass-produce products we need and want, and to provide security in our homes and for the nation.

Fossil fuel use has improved the lives of millions of people worldwide, and millions more can benefit from it. There are no replacement technologies that even approach filling the void Obama and the other climate change advocates are creating. We are on course for a disaster.

Cross-posted from Observations

Obama implements hundreds of millions in new costs for Thanksgiving

Commentary by James Shott

Thanksgiving 2015 was an important day for President Barack Obama. In addition to the traditional pardoning of turkeys, he did two other notable things.

He delivered a Thanksgiving message on Thursday comparing Syrian refugees to the Pilgrims who came to North America in 1620, noting that they were also fleeing persecution. “Nearly four centuries after the Mayflower set sail, the world is still full of pilgrims – men and women who want nothing more than the chance for a safer, better future for themselves and their families,” Obama said.

This weird mischaracterization deserves discussion, but it is the other of his Thanksgiving events that people most likely will not hear much about.

The previous day the President of the United States gave the American people a Thanksgiving gift, quietly releasing more than 2,000 new regulations that reportedly will raise the price of many common items. Furthermore, they come on top of a multi-year period of depressed economic activity left over from the 2008 recession that Obama’s policies have not relieved. Among this group of 2,224 new rules are 144 that are deemed “economically significant,” because each of them will cost the nation at least $100 million.

That group of 144 sets a new record, beating the previous high of 136 that Obama released last spring. With this sort of impact, you can understand why the Regulator-in-Chief prefers to utilize that fabulously popular political tactic of releasing bad news on a Friday, or on the eve of a holiday, so that other things will distract news organizations and the bad news will get buried by the holiday or weekend news.

Obama has used this technique frequently to hide similar releases, doing so right before a holiday seven times since Christmas of 2012.

One of the new rules is particularly notable for its importance to mankind: It mandates labeling of serving sizes for food that “can reasonably be consumed at one eating occasion.” In fact, the Thanksgiving agenda includes regulations covering a broad range of areas, from labeling requirements for pet food, new test procedures for battery chargers, mandated paid sick leave for contractors, and automatic speed limiters for trucks, to a dozen new rules limiting energy use, which will increase the cost of everything from furnaces and dishwashers to dehumidifiers, according to James Gattuso of The Heritage Foundation.

While these rules are not yet finalized, if all of them are finalized it will bring the total cost of regulation for this year to $183 billion, according to the American Action Forum.

Barack Obama may lead all presidents in the number of regulations his administration has created. From January, 2009 when he took the oath of office through 2011, the Code of Federal Regulations increased by 11,327 pages, a 7.4 percent increase, which was more than double the annual increase of the previous decade. And of the six years with the most pages of regulations added to the Federal Register, five of them belong to Obama.

At the end of 2014 the Obama administration had issued nearly 21,000 new regulations, and 2015 has seen approximately 5,000 more. It is only fair to point out that while Obama leads the pack, every recent president has also issued stacks of new regulations each year.

Robert Longely, who writes about government for About.com, explains that “[f]ederal regulations are specific details, directives or requirements with the force of law enacted by the federal agencies necessary to enforce the legislative acts passed by Congress,” and that creating the “vast and ever-growing volumes of federal regulations … happens largely unnoticed in the offices of the government agencies rather than the halls of Congress.”

This means, of course, that regulations are created not by the legislative branch, as intended by the U.S. Constitution, but by thousands of faceless, nameless, unelected and virtually unaccountable bureaucrats in the executive branch, who also create penalties with the force of law.

If there is any good news here, it is that the Congressional Review Act (CRA) allows Congress 60 in-session days to review new federal regulations issued by the regulatory agencies. The CRA requires regulatory agencies to submit all new rules to the leaders of both the House and Senate, and the General Accounting Office provides information on each new major rule to those congressional committees related to the new regulation.

However, while the Congress has 60 in-session days to review and potentially reject any proposed rule, the sheer volume of material represented by 2,224 regulations means that only those major rules that will cost over $100 million will be reviewed. Therefore, most of these rules, the most harmful along with the least harmful, will likely become finalized without being adequately reviewed.

And by the way, just because the cost of a rule doesn’t exceed $100 million doesn’t mean it isn’t both expensive and harmful.

In America – whose foundational principles supported the creation of a nation of maximum individual freedom and a small, efficient and non-intrusive federal government – how many regulations and laws are enough? History teaches that unless there is a substantial change of attitude very soon, we are nowhere close to ending the growth of stifling and destructive regulations.

Cross-posted from Observations