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Friday, 19 June 2009 |
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Three contractors are bidding to fix a broken fence at the White House. One is from Chicago, another is from Tennessee, and the third is from Minnesota.All three go with a White House official to examine the fence. The Minnesota contractor takes out a tape measure and does some measuring, then works some figures with a pencil. "Well," he says, "I figure the job will run about $900: $400 for materials, $400 for my crew and $100 profit for me."The Tennessee contractor also does some measuring and figuring, then says, "I can do this job for $700: $300 for materials, $300 for my crew and $100 profit for me."The Chicago contractor doesn't measure or figure, but leans over to the White House official and whispers, "$2,700."The official, incredulous, says, "You didn't even measure like the other guys! How did you come up with such a high figure?"The Chicago contractor whispers back, "$1000 for me, $1000 for you, and we hire the guy from Tennessee to fix the fence.""Done!" replies the government official.
And that is how the new stimulus plan will work!
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Friday, 19 June 2009 |
There are few topics as complex,
frustrating, and as misunderstood as taxes. T. Davies, professor of
accounting at the University of South Dakota, explains the impact of
tax reduction through a remarkably understandable analogy that is both
entertaining and informative.
"This
is a very simple way to understand the tax laws," says Professor
Davies. "Read on, as it does make you think!" Here's his analogy:
"Let's
put tax cuts in terms everyone can understand. Suppose that every day,
ten men go out for dinner.
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Thursday, 18 June 2009 |
By The Heritage Foundation --Would
President Obama's budget plan increase deficit spending
much more than
other modern presidents? How much and how fast would the national debt
go up under Obama's budget? Is it true that amid all the government
spending, the defense budget would fall to what it was before the 9/11
attacks?
Taxpayers will find clear answers to these questions about the new administration, along with other tax and budget trends
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Saturday, 13 June 2009 |
It
was not Prime Minister Gordon Brown's finest hour. In his D-Day speech
earlier this week, the beleaguered British leader solemnly announced:
"Next
to Obama Beach, we join President Obama in paying particular tribute to
the spectacular bravery of American soldiers who gave their lives."
Most
assume it was a Freudian slip or a teleprompter malfunction (something
from which Mr. Obama himself has been known to suffer). But maybe
there's more to think about here.
Europe today is much different
from the continent where Allied forces landed 65 years ago. On that
first D-Day, it was all about "hard power." From ships to landing
craft, jeeps to tanks, men to material, everything and everyone
involved in the landings were focused on using military might to crack
open Hitler's "Fortress Europe."
But today, while many German
pillboxes remain in Normandy (and look as if they'd be difficult to
overtake, even with modern weapons), the rest of Europe has changed.
Its focus now is on "soft power," chiefly diplomacy and aid.
Many,
if not most, Europeans credit "soft power" for the peace they've
enjoyed for decades. Thinking their version of a Kantian universal
peace arose from the committee chambers of the European Union - and not
from the victories of the Western powers in World War II and the Cold
War - they hold up soft power as a model for the rest of the world.
In
their view, bridging the often hardened differences between states and
shaping their decisions requires mainly negotiation and common
understanding. The importance of our military strength is downplayed
and sometimes even seen as the main obstacle to peace. Even when its
importance is acknowledged, it's a perfunctory afterthought.
Many
liberals are now pressing the U.S. government to adopt this vision,
too. But the futility of it can be seen everywhere, from the failure of
negotiations to deter both Iran and North Korea from their nuclear
programs over the past five years - a period in which their efforts
have only matured - to the lackluster response to Russia's invasion of
Georgian territory.
The limits of soft power have not only
bedeviled Mr. Obama but George W. Bush as well. After applying pressure
on North Korea so diligently in 2006, the Bush administration relaxed
its posture in early 2007, and North Korea concluded that it was again
free to backslide on its commitments. Two years later, this effort to
"engage" North Korea, which the Obama administration continued even
after North Korea's April 5 missile test, has only led North Korea to
believe that it can get away with more missile tests and nuclear
weapons detonations. And so far, it has.
The problem here is not
merely an overconfidence in the process of "talking" and trying to
achieve "mutual understanding" - as if diplomacy were merely about
communications and eliminating hurt feelings. Rather, it is about the
interaction and sometimes clash of hardened interests and ideologies.
These are serious matters, and you don't take them seriously by wishing
away the necessity, when need be, of using the hard power of force to
settle things.
It's this connection of hard to soft power that
Mr. Obama appears not to understand. In what is becoming a signature
trait of saying one thing and doing another, Mr. Obama has argued that
America must "combine military power with strengthened diplomacy." But
since becoming president he has done little to demonstrate an actual
commitment to forging a policy that combines America's military power
with diplomatic strategies.
For America to be an effective
leader and arbiter of the international order, it must be willing to
maintain a world-class military. That requires resources: spending, on
average, no less than 4 percent of the nation's gross domestic product
on defense. Unfortunately, Mr. Obama's next proposed defense budget and
Secretary of Defense Robert M. Gates' vision for "rebalancing" the
military are drastically disconnected from the broad range of strategic
priorities that a superpower like the United States must influence and
achieve.
If our country allows its hard power to wane, our
leaders will lose crucial diplomatic clout. This is already on display
in the western Pacific Ocean, where America's ability to hedge against
the growing ambitions of a rising China is being called into question
by some of our key Asian allies. Recently, Australia released a defense
white paper concerned primarily with the potential decline of U.S.
military primacy and its implications for Australian security and
stability in the Asia-Pacific. These developments are anything but
reassuring.
The ability of the United States to reassure
friends, deter competitors, coerce belligerent states and defeat
enemies does not rest on the strength of our political leaders'
commitment to diplomacy; it rests on the foundation of a powerful
military. The United States can succeed in advancing its priorities by
diplomatic means only so long as it retains a "big stick." Only by
building a full-spectrum military force can America reassure its many
friends and allies and count on their future support.
The next
British leader - and the rest of our allies - need to know they can
count on the U.S. to intervene on their behalf any time, anywhere it
has to. That will require hard power, not just soft, diplomatic words
murmured whilst strolling serenely along "Obama Beach."
Kim Holmes,
a former assistant secretary of state, is a vice president at the
Heritage Foundation and author of "Liberty's Best Hope: American
Leadership for the 21st Century" (2008).
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