I completely understand and agree with the argument that Mitt Romney’s support for the individual mandate at the state level will greatly complicate and undermine his criticism of Obamacare.
But I don’t quite see how one can hold that position and not believe that these sorts of comments from Newt Gingrich to Glenn Beck today wouldn’t complicate and undermine criticism of runaway spending during the Obama administration:
GLENN: Why would we, why would we go into subsidies, though? Isn’t ‑‑ aren’t subsidies really some of the biggest problems that we have with our spending and out‑of‑control picking of winners and losers?
GINGRICH: Well, it depends on what you’re subsidizing. The idea of having economic incentives for manufacturing goes back to Alexander Hamilton’s first report of manufacturing which I believe was 1791. We have always had a bias in favor of investing in the future. We built the transcontinental railroads that way. The Erie Canal was built that way. We’ve always believed that having a strong infrastructure and having a strong energy system are net advantages because they’ve made us richer and more powerful than any country in the world. But what I object to is subsidizing things that don’t work and things that aren’t creating a better future. And the problem with the modern welfare state is it actually encourages people to the wrong behaviors, encourages them not to work, encourages them not to study.
In Newt’s defense, he could always tell President Obama that he thought of this stuff first, as his 2005 book shows:

Can you really not understand the difference between "Obama Investment" and smart conservative investment. Are you really trying to equate a subsidy to Solyndra to the building of the Erie Canal? The buyout of GM and more specifically, the UAW, to building the transcontinental railroad?
Are you against all government investment or just the stupid stuff?
I love the Tea Party and I am a strong supporter of it but there are those within it who can't see the forest for the trees. I never thought you would be one of them.
Reply to this commentLinkReport AbuseWell said.
I had lunch with Newt yesterday, and when you hear him speak and listen to the whole comment, it makes a lot of sense. He talked about how the government couldn't do what the Wright brothers did even though they spent a lot of money and had all of the experts available. But that isn't to say that the government should never ever spend on research and development and infrastructure. Just do it in ways that incentive the private sector to figure out the solution.
Newt is trying to have a very broad appeal, and I applaud that. While I would love to have an uncompromising conservative in office, I don't mind someone that can actually build broad consensuses around conservative principles... Kind of like Reagan did.
I wasn't a big Newt fan before yesterday, I was open minded, but not any huge supporter of anyone.
Now I am firmly in the Gingrich camp.
Reply to this commentLinkReport Abuse"The buyout of GM and more specifically, the UAW, to building the transcontinental railroad? "
go google Crédit Mobilier and james j hill.
Reply to this commentLinkReport AbuseI can't see the difference in the reasoning which would lead to a Federal Erie Canal project vs the reasoning which led to "green tech" investments like Solyndra. And if the reasoning is the same - as Newt seems to be suggesting - all you are left to argue is that your guys are smarter than their guys. That's not a philosophical difference.
And that's the problem with these kinds of arguments from Newt.
And for what it's worth, the Erie Canal was not a Federal project. That idea was rejected by three presidents who found it unconstitutional, including James Monroe who vetoed legislation to find construction. The state of New York funded the canal.
Reply to this commentLinkReport AbuseTim, you just made exactly the same argument that Romney makes to defend his healthcare plan for Massachusetts. Exactly the same. Can you not see it?
Romney: "My healthcare plan was a good idea for Massachusetts, but I would never, ever do it at the federal level, because 'that's different.' "
You: "The Erie Canal was supported at the state level, and that's totally different from it being supported at the federal level."
Sauce for the goose is sauce for the gander.
Of course, the obvious difference here is that the Erie canal and the transcontinental railroad are both examples of toll goods, whereas manufacturing (e.g., Solyndra) involves only private goods. It's not a matter of "philosophy" or anything so intangible. It's a matter of basic economic literacy.
Learn about property theory and economics, and you'll understand government much better. There are public goods, private goods, common property resources, and toll goods. They are all very different, and should be treated differently in public policy. The real question is whether the candidates understand the differences. Clearly, Obama doesn't. But conservatives should.
Take a look:
External Link
External Link
Reply to this commentLinkReport AbuseWell, thanks, but I didn't make the argument you attribute to me, and did not make the statement you quoted me as offering, either. I only added as a footnote that the Erie Canal was not a Federal project.
And Conservatives should understand the Constitution, too.
Reply to this commentLinkReport AbuseThe greatest ideas come from garages .... not government.
Yes. The government should NOT pick winners or even sectors. The playing field should be leveled and the market incentiviced to produce the greatest outcome from 350,000,000 individual minds.
Freedom is enhanced as everyone votes every day on what they choose to buy or not-buy.
Government does what only it can do well ... ensure a level playing field by upholding the law and protecting its citizens.
Reply to this commentLinkReport AbuseThe over-the-top din of Newt dumping from the conservative pundit class is becoming comical. I don't know for sure who I am supporting at this point. But the horrible man everyone is portraying Newt to be is not the man I see. He certainly has his flaws, like all the candidates, and he may not be the right nominee for Republicans, but attacks like your latest, are ridiculous. Now Newt is a bad guy because he favors the transcontinental railroad!
Reply to this commentLinkReport Abuse"But what I object to is subsidizing things that don’t work and things that aren’t creating a better future." Newt provides his own refutation. If something works or has future promise, why do we need to subsidize it? If you can't convince investors to risk their own money, then you shouldn't create your product. There are more valued uses for finite funds. Politicians of any stripe shouldn't be in the business of second guessing and distorting our investment decisions - unless bubbles, graft, and crony capitalism are what you consider success.
Past massive infrastructure projects are prime examples of Bastiat's Broken Window Fallacy. Everyone sees the benefit provided, but the total costs are hidden and not taken into account. Both examples Newt uses were rife with waste and fraud. So put me down as understanding the only difference between "Obama investment" and "smart conservative" investment is which crony capitalists benefit - and always at the expense of the rest of us.
Reply to this commentLinkReport AbuseSeamus,
There is a real distinction between Mitt Romney & his continued staunch support for Romneycare neutering the GOP's best effort to repeal Obamacare and Newt's mere words (which he may contradict in another interview this afternoon) having any impact at all on future GOP attempts to reign in spending.
Romney has ENACTED a universal health care plan and REFUSES TO REPUDIATE that failure. Mitt won't even acknowledge that his ACTIONS helped CAUSE Obamacare.
With Newt - the worst that has happened is a nutty, outside-the-box thinker has blabbered an immediate idea without first completely vetting the idea in his head. After watching Gingrich for 20 years, many conservatives are confident and comfortable KNOWING that Newt will eventually review his thoughts and statements and reformulate the idea before committing it to an actual plan or piece of legislation.
Romney is a retail politician weighted down with an anchor of his bad signature program. When Mitt flip flops on an issue, it is intentional with a political purpose in mind.
Newt is an idealist free thinker who will say 8 different things before settling on an innovative idea to address a problem. When Newt flip flops, it is usually unintentional and without a political purpose - i.e. it's Newt being Newt.
Newt is not ideal, but Romney is far, far worse.
Reply to this commentLinkReport AbuseNow there's an eloquent defense of Newt. Just let us know when what he says actually reflects what he believes, OK?
Reply to this commentLinkReport AbuseYou're missing the point of my repsonse.
Geraghty equated Mitt's flip-flops with Newt's flip-flops and tried to frame the argument that we can trust Gingrich to end subsidies as much as we trust Mitt to repeal Obamacare. Further, Geraghty is following the attempts by many within the GOP establishment to make the erroneous claim that Gingrich is not conservative, but Mitt somehow is.
My distinction in response to Geraghty's faulty comparison between the two candidates is that Mitt is a craven politician who flip-flops for advantage and that Newt is basically a college professor who filp-flops because he speaks in information bursts that sometimes contradict.
Mitt's calculated policy positions flips are not the same as Newt's scattered what-if brainstorms. I think the GOP base understands that distinction.
And - in a year when repeal of Obamacare is the main objective of the GOP base - only one candidate is jumping in the electoral pool wearing the boat anchor of ENACTING universal health care.
Reply to this commentLinkReport AbuseThe way out of the seeming paradox is clear to the sober non-Mittford Wife, Jim:
The cost of Obamacare will dwarf the cost of any infrastructure spending by a couple orders of magnitude. You can build a lot of bridges for the cost of insuring a nation of freeloading hypochondriacs for a single year.
The peasants aren't sharpening pitchforks because we spend too much on roads.
Reply to this commentLinkReport AbuseA government headed by Newt Gingrich would probably be better at venture capitalism than the Obama administration, but that is an incredibly low bar. Regardless of who is president, the government is singularly poorly suited to decide which technologies and businesses in which to to invest other people's money. Death to all subsidies.
Reply to this commentLinkReport AbuseYeah, well I've got a bias against lying, morally challenged serial adulterers and lobbyists for Freddie Mac. Cordially, Bill
Reply to this commentLinkReport AbuseSure, Newt undermines the argument that we should eliminate all subsidies. But most Republican candidates support some kind of subsidy anyway. Very few support government-dominated health care plans or an individual healthcare mandate at any level.
But congrats on grasping the actual argument why Romneycare matters. Too often I hear pundits dismiss the issue on the basis that Romney has pledged to repeal Obamacare. But the key point is that his continued support for Romneycare severely undermines the arguments against Obamacare. And it will be difficult for any Republican to make those arguments in Romney is the nominee. He must be stopped.
Reply to this commentLinkReport AbuseThe word 'subsidies' is being completely overused and overloaded in the media today, and a different interpretation can render Newt's remarks here completely different.
If you use Democrat's definition of subsidies, which includes giving any kind of tax break to anyone, e.g. allowing energy producers a tax deduction for new development, then I don't have much complaint with subsidies.
If you use the true definition of subsidies, that is, the government redistributing money to people for doing things they like, but that do not have direct value to the accomplishment of constitutionally mandated responsibilities (e.g. defense), that is a big problem.
While I'm sure he's voted for both kinds at some point, as anyone in Congress has, he seems far more likely to favor tax breaks over redistribution.
The abuse of our language is an insult to our intelligence. Cuts, subsidies, revenues, investment, and others are all completely distorted and made so vague as to be unintelligible. Newt seems far better than most at avoiding vagaries and being specific in his speech, which is one of his major strong points. People wonder why that Iowa poll showed Newt being trusted most on "understanding the problems facing normal people?" Well this is a major reason.
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