Tag Archive | "hypocrite"

Newt Gingrich 2012: Another Hypocrite for President

Newt Gingrich, who served as Speaker of the House from 1995 to 1999, is one of the front runners in the Republican Primaries for the 2012 Presidential Nomination. As a Republican, he is following the hypocrisy of the many GOP party members who claim to support small government, free markets, balanced budgets, and personal freedoms yet have a history of supporting the contrary. The facts are out there but many self-proclaimed conservatives rather ignore Gingrich’s history, his support for debt ceiling increases, his support for socialism, his anti-free market views, etc and ignorantly believe his contradictory promises.

Newt Gingrich Supports Government Health Care Mandates

The official Newt2012 website states that Gingrich would:

“Repeal and replace Obamacare with a pro-jobs, pro-responsibility health plan that puts doctors and patients in charge of health decisions instead of bureaucrats.”

This once again proves that Gingrich supports government interference in the health care industry. A free-market proponent would not have the government implement a health plan, they would repeal Obamacare and eliminate other regulations that prevent competition and freedom of choice. Further, in 2003 Newt Gingrich supported “The Medicare Prescription Drug, Improvement, and Modernization Act of 2003” which was one of the biggest Federal Welfare Expansions since the 1960s. This increase in Medicare coverage allows Pharmaceutical companies to increase their profits while the increase in socialized benefits further contribute to the National Debt. That is neither fiscally conservative nor pro-free market.

In an interview with Meet the Press on May 15, 2011, Gingrich reaffirmed that he supports Government mandates in the health care industry by stating “all of us have a responsibility to pay – help pay for health care”. That is in agreement with the big government individual mandate that President Obama and the left supports. Connecting all the dots of Gingrich’s actions and statements on health care, WTF Finance comes to the conclusion that a Gingrich repeal of Obamacare would result in a replacement that continues to be anti-free market, supports socialism, and allows the health care industry to profit from government guarantees and the inevitable bailout. This is not surprising given that Newt Gingrich has a history of supporting big government policies that reward irresponsible and unsound financial business practices, as was the case with Fannie Mae and Freddie Mac.


Newt Gingrich Profits From Fannie Mae And Freddie Mac

While GOP Presidential candidate Ron Paul correctly forecast the Housing Bubble in 2002 and consistently criticizes the anti-free market institutions Fannie Mae and Freddie Mac, Newt Gingrich has a history of supporting and profiting from these two Government Sponsored Enterprises that socialize the housing market. Gingrich was also a paid consultant for Fannie Mae and Freddie Mac. The Associated Press reported that Newt Gingrich received approximately $1.5 Million from the two GSEs:

“Gingrich’s history at Freddie Mac began in 1999, when he was hired by the company’s top lobbyist, Mitchell Delk. He was brought in for strategic consulting, primarily on legislative and regulatory issues, the company said at the time. That job, which paid about $25,000 to $30,000 a month, lasted until sometime in 2002. In 2006, Gingrich was hired again on a two-year contract that paid him $300,000 annually, again to provide strategic advice while the company fended off attacks from the right wing of the Republican Party.”

Gingrich’s support for these two flawed financial institutions continued in 2007 when the politician reaffirmed his support for socialism in the housing market during a Wall Street Journal Interview:

“While we need to improve the regulation of the GSEs, I would be very cautious about fundamentally changing their role or the model itself…when you need government to help spur private enterprise and economic development….It’s not a point of view libertarians would embrace, but I am more in the Alexander Hamilton-Teddy Roosevelt tradition of conservatism”

From Newt Gingrich’s actions and statements it is clear that he neither understands nor supports free markets. It is obvious that Newt Gingrich does not understand the root cause of the housing bubble and how government interference distorted the demand and supply variables contributing to the financial mess.


Newt Gingrich’s Statement On Strong Dollar Policy

Newt Gingrich’s official website states that a strong dollar policy is part of his plan for economic and job growth:

“Strengthen the dollar by returning to the Reagan-era monetary policies that stopped runaway inflation and reforming the Federal Reserve to promote transparency.”

Woodrow Wilson established the Federal Reserve by signing the Federal Reserve Act of 1913 into law. By doing so, neither the President of the United States nor its Congress have any control over the monetary system or monetary policy. Monetary policy is set by the quasi-private Federal Reserve System that Wilson established. The hypocritical big government policies of President Reagan devalued the US Dollar as his deficit spending policies contributed to the US debt. In 1995 Newt Gingrich stated in Claremont, NH that he is a big fan of FDR and Woodrow Wilson. How can a supporter of big government politicians and deficit spending be serious about a strong US Dollar policy?


Newt Gingrich Supports Socialism

Newt Gingrich has made it clear that he is a proponent of socialism. He stated that “all of us have a responsibility to pay – help pay for health care” and by supporting Fannie Mae and Freddie Mac he also supports Socialism in the Housing Market, as that is the function of those two Government Sponsored Enterprises. Anybody who can identify themselves with the policies of President Franklin Delano Roosevelt to the extent that Newt Gingrich does clearly supports Socialist policies and has no problem spreading the wealth.

“The greatest Demcratic President of the 20th century and by my judgment the greatest President of the 20th Century…FDR is the greatest Political Leader of the 20th Century”


Newt Gingrich On Debt Ceiling

Newt Gingrich is talking about a strong dollar and the importance of balancing the budget. But what does he truly believe when it comes down to it? Throughout his political career Gingrich supported costly big government bureaucracies and policies that put the United States into greater debt. Newt Gingrich has a history of voting for debt ceiling increases, as he did on June 4, 1980 when he voted “Aye” on House Vote #935.

A Newt Gingrich Presidency would continue the big government policies that FDR, Carter, Reagan, Bush, Clinton, Bush, and Obama, etc. have put in place. Gingrich promises small government, balanced budgets, fiscal discipline, a strong dollar and free markets but his political history and love for big government politicians and policies indicate otherwise. The fact that Gingrich receives so much support from the Republican base illustrates that both Republicans and Democrats share the same big government ideologies.

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Ronald Reagan Hypocrisy: The Deficit Spending, Anti-Free Market “Conservative”

Ronald Reagan served as 40th President of the United States from 1981-1989 and many remember him today as a conservative that supported limited government, freedom, personal responsibility, and conservative fiscal policies. Many Republicans today believe that this Nation should return to the roots of the Reagan Presidency. The 2008 Presidential Campaign made it more than clear that Republicans try to align their platform with that of President Reagan in an attempt to gain votes and promise the Nation a return to small, conservative, and fiscal responsible Government.

WTF Finance very much agrees with the importance of fiscal conservatism, balanced budgets, small Government, personal liberty and responsibility. What we disagree with is the notion that Reagan represented any of the above.

Here’s Ronald Reagan speaking at the 1964 Republican National Convention. He stresses the importance of limited Government, fiscal conservatism, and freedom.

During his Inauguration speech in 1981 he promised to deliver a new era of limited Government and reduced spending. He went as far as to state that

“Government is not the solution to our problem, Government is the problem”.

WTF Finance agrees with much of this speech, however, Ronald Reagan was not the solution, the Reagan administration was a continuation of the problem. As with most politicians, what Reagan promised and what he delivered were very different. With a recession that started during the Carter administration, the pressure was on him to fix the economy. While it is neither the President’s nor Congress’ job to interfere with the economy, throughout US history administrations always make it their priority. With high unemployment, Reagan set out to increase the size of the government in order to decrease the number of unemployed. Obama used this same tactic when he took over office by creating over 16000 new IRS jobs, 1000 Department of Homeland Security, etc continuing a long standing tradition of using a distressed economy to increase the role and cost of government.

We don’t disagree that President Reagan cut taxes significantly during his first year in office. However, as he grew the role, size, and deficit of Government he implemented many tax increases that weren’t in line with a conservative platform. In 1983 Reagan signed the Surface Transportation Assistance Act of 1982 which more than doubled the tax on gasoline from 4 to 9 cents per gallon. Keep in mind that a gallon of gas cost around $1.25. While many Republicans complain about the Alternative Minimum Tax (AMT), it was President Reagan that signed the Tax Reform Act of 1986 which would ensure that more people qualify for this additional tax. In addition, the tax act of 1983 increased payroll taxes for corporations further encouraging companies to outsource their workforce. Acknowledging that Government is in the way of economic prosperity during his campaign, Reagan proved his point not by solving the problem but by implanting policies that perpetuated it. As a result the productive manufacturing base severely declined and left for more business friendly nations.

Proclaiming to be a conservative, Reagan promised to cut the size and spending of Government while stating that Government should stay out of the lives of individuals. In 1964 Reagan held a speech at the Republican convention in which he criticized big government and deficit spending. “We haven’t balanced our budget 28 out of the last 34 years.” In that speech Reagan further criticized the Nation for debasing the US Dollar, a consequence of deficit spending policy and a practice that once in office he himself not only mimicked but took to new heights.

With a career as an actor Reagan delivered his speeches well and sold the idea that he was an advocate of limited Government when nothing could be further from the truth. As an outspoken proponent of liberty, limited government, fiscal conservatism and free markets he directly contradicts his promises. The war on drugs not only is a direct attack on personal freedom but also comes at an enormous expense and expansion of government. The war on drugs and the regulation of natural and synthetic substances is also anti-free market. A conservative view would prohibit the Government from taking a position limiting or regulating what substances can and cannot be consumed whether or not they would be a user. As a direct result of the criminalization and increased persecution of drug users during the Reagan administration, the prison population greatly increased leading to the privatization and profiteering of the prison system. This greatly increased the number of law enforcement, DEA, public sector lawyers and judges hired by the Reagan administration which is also a contradiction of his promise to reduce the size and scope of the Government.

Another market interventionist policy enacted by the Reagan administration was executive order 12631 whose stated function is as follows:

Sec. 2. Purposes and Functions.

(a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation’s financial markets and maintaining investor confidence, the Working Group shall identify and consider:

(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987, and any of those recommendations that have the potential to achieve the goals noted above; and

(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations.

(b) The Working Group shall consult, as appropriate, with representatives of the various exchanges, clearinghouses, self-regulatory bodies, and with major market participants to determine private sector solutions wherever possible.

(c) The Working Group shall report to the President initially within 60 days (and periodically thereafter) on its progress and, if appropriate, its views on any recommended legislative changes.

Sec. 3. Administration

(c) To the extent permitted by law and subject to the availability of funds therefore, the Department of the Treasury shall provide the Working Group with such administrative and support services as may be necessary for the performance of its functions.

This working group, sometimes referred to as the Plunge Protection Team (PPT), was established to directly interfere with the markets effectively destroying any notion of the US having a free market economy. The four members selected were the Secretary of the Treasury (currently Geithner), the Chairman of the Governors of the Federal Reserve System (currently Ben Bernanke), the Chairman of the Securities and Exchange Commission (currently Mary Schapiro), and the Chairman of the Commodity Futures Trading Commission (currently Gary Gensler). This working group is able to manipulate the markets and is given access to unlimited resources in order to maintain the president’s agenda. To state that Reagan was a conservative who supported capitalism and free markets is completely ignorant, as no one who believes in the purity of the free market would implement such a direct attack on it.

Nostalgic romanticizing of Reagan as the father of modern conservatism and the model for the Republican Party to emulate is popular within the current GOP. Saying the Republican Party “lost its way” and needs to go back to its conservative roots is a key talking point among the Republicans hoping to draw up an emotional response in the build up to Presidential Primaries. WTF Finance would argue that the current crop of Republicans, exemplified by Rep. Paul Ryan, is following right along the path laid out for them by the Reagan administration. To decry the current spending, even distancing themselves from the Bush administration in the hopes of gaining political points is interesting given that they also dwell on Reagan as the example they wish to bring back to the White House.

If indeed a Republican is elected to replace the Obama administration in 2012, we can only assume that the status quo will remain in tact. Spending will hit record highs, the deficit will increase, the debt ceiling will be raised, the Government will expand further into our lives taking away more rights and freedoms in the name of “protecting” the population, more regulation will be embraced further crippling an already diminished manufacturing and production sector etc.

Whichever party is in charge the trend is clear: blame the previous administration for the woes of the economy, promise to reign in government control and budgets, promise to change the direction the government has been taking only to continue along the same path of increasing the size, role, and cost of the government.

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