{"id":508,"date":"2013-09-26T20:09:36","date_gmt":"2013-09-26T20:09:36","guid":{"rendered":"http:\/\/www.wallstreetandkstreet.com\/?p=508"},"modified":"2013-09-26T20:09:36","modified_gmt":"2013-09-26T20:09:36","slug":"revolt-against-the-elites","status":"publish","type":"post","link":"https:\/\/www.wallstreetandkstreet.com\/?p=508","title":{"rendered":"Revolt Against the Elites"},"content":{"rendered":"<p>Something big and fundamental is happening in America\u2014a broad-based revolt of ordinary citizens against Washington elites, left and right.\u00a0 Elite arrogance and ineptitude across a multiplicity of issues has provoked the unwashed masses beyond the Beltway.\u00a0 Let us count the ways.<\/p>\n<p>Titans of the foreign policy establishment, ranging from Republicans John McCain, Lindsey Graham, Brett Stephens and Bill Kristol to <i>New York Times<\/i> pundits Bill Keller and Nick Kristoff, argue the U.S. should <b>provide military aid to \u201cmoderate\u201d \u00a0Syrian rebels <\/b>fighting Assad.\u00a0 To ordinary people this is a really, really dumb idea, and they let Congress know it.\u00a0 What part of the phrase \u201ccivil war\u201d do these \u201cexperts\u201d not understand? \u00a0Have Iraq and Afghanistan taught them nothing?\u00a0 Why support rebels who hate Christians, Jews, and Americans as much as they hate Assad?\u00a0 When has America ever gotten credit for helping Muslims in the Mid East?\u00a0 How does the U.S. benefit from spending billions of dollars in Syria?\u00a0 Absurdly, elites characterize these cautionary queries as \u201cisolationism\u201d \u2013 as though the Syrian civil war resembled Hitler\u2019s invasion of Czechoslovakia.<\/p>\n<p>Then there is <b>Obamacare<\/b>, opposed not only by Republicans but also by labor unions and Democratic Congressmen (at least when the law applies to them).\u00a0 Rasmussen reports that 50% of Americans believe the law will worsen the healthcare system and only 30% think it will improve it.\u00a0 Obamacare\u2019s 30\/50 rule (companies must provide health insurance if they have 50 \u201cfulltime\u201d employees, defined as those working at least 30 hours per week) is creating a part-time workforce, which hurts low-income workers the most.\u00a0 The law overcharges young workers already burdened by education debts and a weak labor market.\u00a0 (Get ready to pay IRS fines if you don\u2019t comply.) \u00a0Waivers for favored interest groups and delay of sundry Obamacare provisions are unconstitutional selective enforcement of legislation.<\/p>\n<p>Then there is the <b>NSA Scandal,<\/b> which unites ACLU lefties and Rand Paul libertarians.<\/p>\n<p>Then there is the <b>IRS Scanda<\/b>l, where the taxmen became an arm of the Democratic Party.<\/p>\n<p>Then there is <b>Benghazi<\/b>, where the supreme incompetence of Hillary\u2019s State Department led to the death of four officials, which Obama and Hillary blamed on a You-Tube video that supposedly inspired a spontaneous riot that somehow morphed into a military attack, complete with mortars and truck-mounted artillery.<\/p>\n<p>Then there is the dreaded <b>sequester<\/b>.\u00a0 Obama thought any belt tightening by Uncle Sam would be a disaster, but out here in the Real World \u2013 where relentless, continuous corporate restructuring and cost-cutting are normal\u2014it was no big deal.\u00a0 Ironically, the resulting decline in the deficit is one of Obama\u2019s few economic successes.<\/p>\n<p><b>Behind the Revolt: O\u2019Poverty<\/b><\/p>\n<p>As I have been predicting for a few years, elite arrogance and bureaucratic overreach are squelching \u201canimal spirits\u201d in the private economy.\u00a0 What company would be eager to hire when confronted with: A) an avalanche of regulation \u2013 Obamacare, Dodd Frank, the EPA\u2019s war on fossil fuels, proliferating OSHA regulations, huge fines on banks; B) big hikes in marginal tax rates; C) a dearth of pro-growth initiatives such as tax reform and free trade agreements; D) the anti-capitalist rhetoric of Barack \u201cyou didn\u2019t build that\u201d Obama.<\/p>\n<p>Last week the U.S. Census gave the President his annual economic report card.* It was not one you would rush home to show Mom and Dad:<\/p>\n<ul>\n<li>For Obama\u2019s vaunted \u201cmiddle class,\u201d this is the worst recovery in over forty years.\u00a0 <b>In 2012 median real household income was flat with 2011 but still down 4.3% since the recession ended<\/b> in 2009. By contrast, in comparable three-year periods of prior recoveries this metric was: -1.6% (after the 2001 recession), -0.2% (1991), +4.3% (1982), +6.3% (1975).<\/li>\n<li><b>For the third year in a row, the poverty rate was a lofty 15%<\/b> (after 14.3% in 2009). In the 44 years prior to 2010, it was at or above 15% in only three years\u2014during or right after recessions.\u00a0 While G.W. Bush was president it averaged only 12.5%.<\/li>\n<li>Despite Obama\u2019s attack on high earners, <b>inequality is increasing<\/b>.\u00a0 The <b>Gini Coefficient climbed steadily from 0.466 in 2008 to an all-time record of 0.477 in 2012<\/b>.\u00a0 (It averaged 0.466 while G.W. Bush was President.)\u00a0 Another, less abstract, metric tells the same story.\u00a0 In 2012 <b>the 95<sup>th<\/sup> percentile of the income distribution earned 3.75x the median household income<\/b>, far above the average of 3.56x when G.W. Bush was President.<\/li>\n<\/ul>\n<p><b>The Leader of the Revolt Should . . . <\/b><\/p>\n<p>The Republican politician who most effectively leverages this discontent will be one who respects Tea Party Values but goes way beyond the \u201cbase\u201d to pursue an inclusive, culturally modern, pro-growth, small government, pro-privacy agenda that puts the DC elite in its place.\u00a0 Key features:<\/p>\n<ul>\n<li>An optimistic <b>focus on economic growth<\/b> and opportunity.\u00a0 Repeal and replace Obamacare so healthcare laws do not abridge privacy and discourage hiring, as Obamacare does.<\/li>\n<li>Agree with statist pundits like Tom Friedman that the \u201c<b>sequester\u201d needs to be replaced with long-term entitlement reform<\/b> because it is squeezing \u201cvital investment\u201d such as medical research and infrastructure.<\/li>\n<li>A <b>positive environmental agenda focused on protecting more natural habitat<\/b> without shutting down economically beneficial activity. End the war on fossil fuels but encourage \u201crenewable\u201d energy via basic research\u2014not subsidies and mandates.<\/li>\n<li><b>Privacy from government snooping<\/b>\u2014a big, big issue for the Millenial Generation, which lives on the Web.<\/li>\n<li>An <b>inclusive pro-growth immigration policy<\/b> based on effective border security, attracting the best and the brightest, and letting illegals stay in America but without a special path to citizenship.\u00a0 (Citizenship is far more important to Democratic bosses than immigrants themselves.)<\/li>\n<li>Assuming he does not run for President, <b>appoint the brilliant Dr. Benjamin Carson<\/b> to a prominent position in charge of helping inner city communities escape the vortex of poverty, drugs, crime, broken families and bad schools.<\/li>\n<\/ul>\n<p>*U.S. Census, <strong>Income, Poverty and Health Insurance Coverage in the United States: 2012<\/strong> published September 2013<\/p>\n<p>Copyright Thomas Doerflinger 2013.\u00a0 All Rights Reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Something big and fundamental is happening in America\u2014a broad-based revolt of ordinary citizens against Washington elites, left and right.\u00a0 Elite arrogance and ineptitude across a multiplicity of issues has provoked the unwashed masses beyond the Beltway.\u00a0 Let us count the &hellip; <a href=\"https:\/\/www.wallstreetandkstreet.com\/?p=508\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[178,48,175,176,14,76,177,174],"class_list":["post-508","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-benjamin-carson","tag-income-inequality","tag-median-household-income","tag-middle-class","tag-obamacare","tag-poverty","tag-republican-platform-2016","tag-washington-elites"],"_links":{"self":[{"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=\/wp\/v2\/posts\/508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=508"}],"version-history":[{"count":2,"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=\/wp\/v2\/posts\/508\/revisions"}],"predecessor-version":[{"id":510,"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=\/wp\/v2\/posts\/508\/revisions\/510"}],"wp:attachment":[{"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.wallstreetandkstreet.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}