Tags: Defense Spending

Exemptions: One of the Real Currencies of the Obama Administration


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The Morning Jolt begins the week with some ominous news from London about the Olympics, a lengthy contemplation of parenthood and modern society, and then this bit of economic news that could greatly impact the campaign in the fall . . .

Hey, Can We All Get Exemptions from All of Obama’s Policies?

The Wall Street Journal looks ahead . . . to autumn:

For all the focus on the unemployment rate heading into the November elections, the layoffs that could most complicate President Barack Obama’s re-election prospects wouldn’t take effect until early next year.

Unless Congress and the White House reach a compromise by year-end, the Pentagon would have to slash roughly $50 billion more from the current fiscal-year budget in January. That prospect of wide layoffs could undercut Mr. Obama in battleground states heavily dependent on military spending, particularly Virginia.

Federal law requires companies to warn their employees of potential layoffs 60 days before they take effect, meaning thousands of workers could receive the warning notices on the Friday before the election.

I wonder if anyone on Team Obama will contemplate trying to grant some sort of exemption to that federal law. You think I kid, but exemptions are the one of the real currencies of this administration:

On Obamacare the Obama Health Care Tax . . .

Of the 204 new Obamacare waivers President Barack Obama’s administration approved in April, 38 are for fancy eateries, hip nightclubs and decadent hotels in House Minority Leader Nancy Pelosi’s Northern California district.

On No Child Left Behind . . .

President Barack Obama said on Thursday he was granting 10 U.S. states exemptions from parts of the “No Child Left Behind” education law, a move that could prove popular in an election year with parents and teachers who have criticized the law.

On Iran sanctions . . .

Even as it huffs and puffs, the United States last week took steps to undermine the very sanctions it cites as pressure against Iran. Using a loophole in the law, the administration simply exempted China, Singapore and other countries from heavy financial penalties that might be levied against nations that buy Iranian oil. On June 28, Hillary Clinton announced that the U.S. had “made the determination that two additional countries, China and Singapore, have significantly reduced their volume of crude oil purchases from Iran” and so the law “will not apply to their financial institutions for a potentially renewable period of 180 days.”

That, of course, was a polite fiction. As a July 2 editorial in the Wall Street Journal succinctly summarized the toothless nature of the sanctions law: “It’s so weak, in fact, that all 20 of Iran’s major trading partners are now exempt from them. We’ve arrived at a kind of voodoo version of sanctions. They look real, insofar as Congress forced them into a bill President Obama had to sign in December. The Administration has spoken incantations about their powers. But if you’re a big oil importer in China, India or 18 other major economies, the sanctions are mostly smoke.”

Think of all of these exemptions as after-the-fact admissions that the policies are unworkable and disasters-in-the-making, or a sign that the administration was never that determined to enforce the law in the first place . . .

Tags: Barack Obama , Defense Spending , Economy , Obamacare

Britain Cuts Its Military Budget -- Should We?


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So David Cameron wants Barack Obama to know that Britain is still America’s “wingman,” as he put it. The reassurance was necessitated by Cameron’s announcement that the United Kingdom will be cutting its military budget by about 8 percent — a steep but endurable reduction in defense outlays.

Among the items lost to the budgeteers’ scalpel: MHS Ark Royal, the flagship of the Royal Navy, and the fleet of Harriers attached to it. The new, downsized British military would not be able to carry off its current supporting role in Iraq.

Some wingman: one who reduces his beer budget by 8 percent but assures you he’ll still be available to go out on the weekends — just so long as you buy an extra round. It is frustrating, to be sure, but we Americans really have no one to blame but ourselves: With our monster military budget, it is only natural that the nations residing safe (if occasionally resentful — we’re lookin’ at you, Canada) under our abundantly fortified security umbrella should choose military spending as the first target of opportunity when it comes to budget reductions. There are upsides to America’s overgrown national-security apparatus, to be sure, but the downsides, in addition to the walloping direct expense of the thing, is the indirect expense: Our over-large military is a shadow subsidy for the over-large welfare states of Europe, Canada, and our other allies around the world, including their protectionist corporate-welfare measures. American military protection helps to make South Korea, Germany, and Japan more effective global competitors — and also forces the United States to carry most of the political baggage for looking out after the West’s security interests around the world.

Why do we do this? Mostly because we regret what happened the last time we left the Europeans in charge of anything more consequential than Nokia.

Hypothetical: What happens if Atlas shrugs off his global military commitments? What if the United States decides that we’ve got Hitler and Stalin whipped and do not need all those troops in Germany? What if we decide that it’s too expensive to send American soldiers to do sentry duty just as easily performed by landmines in South Korea? (Seriously, I doubt the Norks could afford to buy enough diesel to get their army to the DMZ, much less to invade a civilized country like the Republic of Korea.) What if we take the Okinawans at their word that they want us out, and we get the hell out?

I do not pretend to be ready to analyze the military implications of a general (if minor) retrenchment of the global military presence of the United States. But it seems to me that it would carry with it some distinct political benefits — and save us a hell of a lot of money. If we followed Britain’s lead and reduced military spending by 8 percent, that’s $67 billion a year off the deficit, or . . . 4.7 percent off of the 2011 deficit, estimated to hit $1.4 trillion.

Okay, so tell your peacenik friends: Pentagon cuts won’t balance the budget. In fact, our deficit currently is running at about twice the size of the entire national-security budget. Trimming the military will do the Brits’ balance sheet a world of good — and will cost them very little other than a piece of their already diminished national self-respect — so why not? But it is going to take more radical moves to bring the American fiscal house into order.

– Kevin D. Williamson is deputy managing editor of National Review and author of The Politically Incorrect Guide to Socialism, to be published in January.

Tags: Debt , Defense Spending , Deficits , Despair , Europeans , Fiscal Armageddon


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