Culture of Corruption

"Concentrated power is not rendered harmless by the good intentions of those who create it."


Milton Friedman

Rep. Maxine Waters of California probably broke ethics rules, House panel finds


An ethics report released Monday found that Rep. Maxine Waters probably broke conflict-of-interest rules in urging federal aid for a bank where her husband had served on the board and owned hundreds of thousands of dollars in stock.
 
Below are some comments posted from readers associated with this story that may be of interest here...
 
Hairless wrote:


Aren't the Democrats in the majority on the ethics committee? (Just as they are everywhere in Congress) Couldn't Ms Water's buddies have stopped this with their majority? Guess it's President Bush's fault that this is happening to poor Ms. Waters.
 
ignoranceisbliss wrote:


AP wrote: WASHINGTON – California Democrat Maxine Waters faces a House trial this fall on three charges of ethical wrongdoing, setting the stage for a second election-season public airing of ethics problems for a longtime Democratic lawmaker.

The charges focus on whether Waters broke the rules in requesting federal help for a bank where her husband owned stock and had served on the board of directors. She denied the charges Monday.

Persons familiar with the case said Waters is accused of violating:

_A rule that House members may not exert improper influence that results in a personal benefit.

_The government employees' ethics code, which prohibits granting or accepting special favors, for the employee or family members, that could be viewed as influencing official actions.

_A rule that members' conduct must reflect creditably on the House.

The persons were not authorized to be quoted by name on allegations not yet made public.
The House ethics committee's announcement comes just days after it outlined 13 charges against Rep. Charles Rangel, D-N.Y., including failing to disclose assets and income, delayed payment of federal taxes and improper use of a subsidized New York apartment for his campaign office.

Another great reason for term limits for the House and Senate. No more lifer politicians. Waters is a DISGRACE.
 
ajon1600 wrote:
If Speaker Pelosi want the continued support of the party, she should let these two accused law breakers fend for themselves, and concentrate on November.
She pledged to "drain the swamp", now is the time to deliver on that pledge.
I don't care how much pressure comes from the CBC, she will have much more public support if the let the legal process take it's due course.
Personally, I think both Rangel and Waters have been around too long and are not really very useful anymore. We need new blood and new ideas and energy.

concernedcitizen3 wrote:


The Waters and Rangel cases serve to remind us that possibly the only reliable difference between Democrat and Republican politicians is that Republicans generally exhibit some semblence of shame and resign when they get caught disgracing their office. Democrats no longer feel the need to do so. And no, I'm not a Republican.
 
Do you have a thought?  Who else do you think may be guilty of questionable ethics?  Congressman Jim Moran?
 
Let Freedom Ring

Our Rich Immigrant Heritage

A few years ago I had the privilege to visit Ellis Island near New York.  For a California born “West Coaster” it was amazing to see this portal to our past.  I walked in awe as I viewed the floors and areas where millions of our ancestors began their “American Journey”.  Nearly all of us are immigrants or sons and daughters of immigrants.  Whether your family has been here since before the the Revolutionary War as most of mine has or you recently became American, we all came here from somewhere else.
As I look around Washington DC, I am constantly reminded of what a rich heritage we have.  Whether your family came from Africa, Europe, Asia or places beyond, nearly everyone came here to participate in that great American tradition, the American Dream where each of us is free to pursue our dreams.  Life, Liberty and the Pursuit of Happiness is what brings people to our great country.
8th Congressional District candidate, Patrick Murray, had this to say at last weekend’s 7th Annual Asian Festival in Reston, “Our diversity as a country and our celebration of that unique heritage is a significant part of what makes America such a great nation.
Many want to see their small businesses succeed and grow and they want their children to have the best education opportunities available to them.   Like me, they’re concerned that these essential parts of the American dream are in jeopardy and without meaningful change, our nation is in trouble.
It doesn’t matter if you’re new to America or if you’ve been here for a long time, we all have the expectation that those elected to serve us in Congress will do so honorably and with integrity.”
It is freedom that makes possible the miracle that is America.  Freedom to choose how best to live our lives with a government restrained to the minimum of intervention and is here to insure that, as a nation of laws, not men, we respect one another.  This way everyone has the opportunity to create their vision of the American Dream that respects our mutual and individual heritages and one another. 
When we focus on these core principles, whether you came over on the Mayflower or on a jet last week, we can all participate in this wonderful, noble experiment we call The United States of America.
Let Freedom Ring

Spending Too Much or Taxing Too Little?

“You can't tax your way out of a spending problem, you've got to stop spending” New Jersey Governor Chris Christie.
In a nutshell, this is the essence of fiscal responsibility.  It works at all levels.  Whether you are an individual, a family, a company or a government.  Unbridled spending does not lead to successful operations.  This is the essence of the case made by Peggy Noonan in her column yesterday.  It is a winning argument that Republicans can and should be making everywhere.
I have seen this first hand.  Several years ago, I had the opportunity to work for a novel company with a brilliant approach to health care prescription management.  Despite the fact that the idea had enormous value, the leadership of the company spent enormous amounts of money in acquisitions, out of proportion to the revenue that we were generating.  So, in spite of the fact that during my time there, we doubled sales revenue, spending increased by more than 5 times. 
There came a point when the investors stepped in and said “Enough”!  Drastic measures were taken.  Approximately 70% of the staff was let go, much of the leadership was replaced and the company took off in a new direction.
That was personally tragic for me as I was part of the 70%, but in the end, it worked out as the company was focused in a specific area, had modest success and then ended up being acquired by another company with the breakthrough technology being adopted by the acquiring company.
The point is, nothing can exist forever with an imbalance between the revenue coming in and the expenses going out.
Our current government does not seem to get this.  Or if they do, the answer seems to be, “Well let’s raise the revenue”.  Yesterday’s lead editorial article in the Washington Post seemed to imply this with their recommendation that we raise taxes.
The problem with this is captured clearly by Governor Christie.  This situation is a result of unprecedented increases in spending without regard for the revenue to pay for it.  Simply raising tax rates may or may not have the desired effect because as Arthur Laffer continuously points out, raising rates do not necessarily lead to a commensurate increase in revenue.  The reason is that taking revenue from the economy, especially when the economy is fragile, often leads to less investment and less economic activity. 
Lower economic activity leads to less prosperity, less prosperity leads to lower tax revenue.  It is a question of simply math, I mean which would you rather have 15% of $1 Million dollars or 20% of $300,000?  If you need help in answering this question, please ask the citizens of California where they took a “soak the rich” attitude to taxation years ago and when the rich stopped being so rich, the entire state became a poster child for lopsided taxation policies combined with spending commitments held hostage by out of control public unions.
The solution is to bring spending under control, encourage the creation of prosperity by adoption of policies that encourage private investment and regulatory policies that encourage individuals to make those investments here, in America.  This is the way to create meaningful jobs that provide dignity and hope.
Let Freedom Ring.

Raising Taxes in a Fragile Economy

In today's WSJ and other publications it was reported that our economy slowed in the 2nd Quarter of this year.  According to the WSJ "The Commerce Department Friday said U.S. gross domestic product, or the value of all goods and services produced, rose at an annualized seasonally adjusted rate of 2.4% in April to June. In its first estimate of the economy's benchmark indicator, the government report showed growth was lifted by business investments and exports. Consumer spending, a key growth engine for the U.S. economy, made a smaller contribution to growth."

Reading some of the comments associated with this are fascinating....

Peter Klientje wrote: "I don't understand.... Where did it go wrong?


We all know that Socialism works. It works in Cuba, it works in North Korea and it did wonders for the people in the former Soviet Union. Socialism works every single time it is tried.

Why then is Socialism not working in the USA? We have the perfect shepherd for us, the sheeple; obama. We have the smartest, the most inspirational leaders in the House and Senate, pelosi and reid....

We have honesty and integrity in our government; rangel, geithner, sebelius, kerry...

And yet, despite all these blessings, there is no spark, no jobs, no economic growth. How can this be? July is practically over, when will the Summer of Recovery start?"
 
Jim Altfeld wrote:  "The administration can say and do anything it wants, but when it comes right down to it, nothing they are doing is working. It's a lot like building a bridge. It's hard to hide your mistakes when it's out there for everyone to see. More taxes can only lead to more government spending. Less taxes takes money out of government's pockets and puts it back into the pockets of corporations and We The People!! If turning this economy around will be done on the backs of the people, then let the people determine when and where they want to spend their money. Hey Government: Stop spending and stop taxing. You cannot and were never meant to cure all the ills that go on in our country."
 
Attorney General Ken Cuccinelli pointed this out recently at a fund raiser for Patrick Murray.  This is backled up by a recent remarks by Ken Walker, CFE, chairman of the International Franchise Association and chairman and CEO of Driven Brands. 
 
His remarks included the following:  "Uncertainty is the theme for franchise businesses this summer. Uncertainty about new government regulations, uncertainty about availability of capital, and uncertainty about how quickly the economy will truly recover is stifling job and business growth.


Of course, there are many reasons for the current wave of uncertainly, but as Dallas Fed President Richard Fisher recently said, “Congress and the government have inhibited growth by creating uncertainty about business costs. We need clarity. You can’t eliminate uncertainty, but you have to reduce it as much as possible.”

As job creators, franchise business owners remain in the crossfire of a political agenda that increasingly threatens to stifle economic growth even further. Potential new taxes on both personal and business incomes, a continuing array of new regulatory burdens from health and energy reforms, and the failure to invest in common-sense solutions to help small businesses grow will certainly hamper job creation.

For example, we know that tax paperwork and compliance are already major expenses for small businesses, but buried in the new health-care law is a requirement for small businesses to report every business-to-business transaction that involve property and services in excess of $600 annually.

This would trigger the requirement to file a Form 1099 with the IRS and furnish taxpayer identification numbers (TINs) for all businesses and persons involved." (more)

The point is the that this uncertainty and additional burdens being placed on small businesses may be contributing to the drag in the economy.  That drag and the policies of the current administration and congress are making it increasingly difficult for businesses to create jobs and hire people.  It points them in the direction of seeking labor saving solutions overseas and in technology rather than hire people here.

What is needed is stability and policies that do not discourage businesses to invest and hire domestically.

My Thoughts, What are Yours?

Let Freedom Ring

Good Judgment; Poor Judgment

My Dad use to tell me when I was growing up, if you want to know the heart of a man (or woman) watch what he does with his money.  Another Dad’ism was, “Always Follow the Money”.  Here he meant that you can predict a persons loyalties by considering where his money comes from.

I will state up front, I have worked for AT&T for over 15 years and many of my points of view, especially as it comes to questions associated with telecommunications, reflect a point of view that reflects my pride in my company, the offers that we have and our philosophical approach to the marketplace.  My opinions are my own and do not reflect official company positions, occasionally I disagree with company decisions and feel embarrassed with our mistakes, still my sympathies lie with the company that rewards my work.

My point in stating this is to acknowledge that it is human nature to, at minimum, be sympathetic to the sources of our funding.  That is why it is so important to disclose and try to avoid situations where our ethics may be compromised by the potential influence from whoever provides our funding.  As a private citizen, where I am not responsible for the people's money, the standards of ethics applied to me are at one level.   Disclosing who I work for and that it might influence my judgement is consistent with what most people expect of a private citizen.

When you are a public official, I submit, you must operate at a much higher ethical level.

A tale of two politicians

This morning, it was reported that Virginia State Attorney General, Ken Cuccinelli, has decided to give up the questionable donations made to him by Bobby Thompson, a Florida man who served as a director of a charity under investigation in at least four states, including Virginia.

This demonstrates, principled good judgment on the part of Cuccinelli so that he can avoid both the substance and appearance of improper influence by this man under investigation.

Sadly, this same kind of principled good judgment can not be said by our 8th District Congressman, Jim Moran.  Hiding under the cover of recent exoneration by the Democratically controlled, House ethics committee, Congressman Moran continues on his path of accepting contributions by business leaders associated with companies he obtained millions of dollars in federal earmarks.

Again, as my Dad use to say, “you want to know how a person is likely to behave, follow the money.”  It is a pretty strong bet that Congressman Moran will have sympathies for these companies and will look for opportunities to funnel more federal dollars to them.  Bringing home the bacon has been a time-honored political practice, but when your campaign accepts donations back from these companies, it strains credibility that your judgment will not be compromised, just ask former Congressman Randy Cunningham.

I ask the voters in the 8th District to join me in demanding that Jim Moran stop the practice of accepting donations from companies he has delivered earmarks to and return the money he has already accepted.  I mean, who do you want your congressman working for, you, or a small handful of local businessmen?

Let Freedom Ring.

Earmarks, Donors and Jim Moran

Henry Hazlitt in his brilliant "Economics in One Lesson" talks about the dangers of funnelling government funding of projects into specific areas.  He argues that while the impact on the local region is very positive, one has to consider the dollars that are not spent in other places.  This means that while the local area benefits, there are projects and investments NOT made in other parts of the country.  So, the value created in one place is offset by the lack of value not created in another.

This can lead to an environment where corruption is easily bred.  Why?  Because, those who are the beneficiaries of the funding become dependent on the official who provides them.  Further, it leads to a cozy "I will scratch your back, if you scratch mine" relationship between the official and those who benefit most from the funding.

The late Congressman Murtha was the master of this.  He was so good at it, that he had an airport built in the middle of nowhere that required full time TSA staffing and maintenance for what amounted to two flights daily.  His constituents loved him for it and re-elected him over and over in spite of suspicion of corruption that at one point led to questions of ethics brought against him by the house.

Nonetheless, he turned his river of money that came from you and me into one of the best "loyalty" programs ever.  (American Express Rewards had nothing on Murtha).  One could almost argue that he corrupted an entire district and made them dependent on his largess.

Moran Tops US Congressmen in Contributions from Earmark Recipients

Could we be seeing something similar right here in our own backyard?    Recently in a June report by two nonpartisan organizations generally critical of earmarks, Taxpayers for Common Sense (TCS) and the Center for Responsive Politics (CRP), it was reported that Congressman Jim Moran of Northern Virginia was the House leader in campaign contributions received from earmark recipients.  The report showed Democrat Jim Moran got $89,600.

According to virginiawatchdog.org, "Moran received more than $80,000 from executives, political action committees and lobbyists of companies to whom he’s directed earmarks. In total, Moran has received $82,700 total from these committees and individuals, according to Federal Election Commission reports. MobilVox, Inc. tops the list of donors, contributing $8,300 to Moran and receiving a $2 million earmark.


(Further) Moran requested earmarks for donors totaling more than $50 million. The largest earmark requests were $3 million each, requested for EM Solutions, Inc., Argon ST and DDL Omni Engineering. All of the earmarks given to donors of Moran were defense appropriations.


Finally, it’s true that more than 20 percent of Moran’s $396,952 in donations last year came from these committees and individuals."

To be clear, at this point there is no reported evidence of corruption here.  It currently appears that all of this has been reported correctly.  Still, where there is a close connection between the people receiving the earmark and those who contribute to a campaign, it can give the appearance of a payoff.  At any rate it is logical that those who are the beneficiary of this largess, would be motivated to see Mr. Moran re-elected.  At the very least, this calls into question the congressman's judgement.

This also creates a less than fair playing field for candidates to compete for voters attention and votes.  Could we be seeing the seeds planted for a Murtha like abuse of privilege?  The greed of a handful of local people who benefit from this transfer of money from other parts of the country to here may be great for our local citizens but could be bad for our country. 

I believe our local citizens are smarter and more honorable than that.  When they realize that Congressman Jim Moran is not only playing this shell game with the people's money, but setting up this mutual admiration and reward "society", they will be giving second thoughts about whether someone with this kind of judgement deserves another term in Congress.

Let Freedom Ring

A Tree of Liberty is Planted in Alexandria Virginia

Virginia Attorney General, Ken Cuccinelli arrived later than expected by a surprisingly large crowd at the home of Kimberly Newman of Alexandria, Virginia last night.  However, it was not too late to help plant the seeds of Liberty with this enthusiastic crowd of supporters of US 8th District Congressional Candidate Patrick Murray.

Both AG Ken Cuccinelli and Candidate Murray spoke of the "job-killing uncertainty" that exists in the marketplace today.  According to Cuccinelli and Murray, there is a direct link between the lack of job creation and the policies of President Obama with the support of current Congressman, Jim Moran.  Discussion by this crowd centered on what is needed to set this country right again.

While many last night acknowledged that unseating Jim Moran will be difficult, all seemed enthusiastically up for the challenge as the Attorney General and the candidate pounded on the themes of:

• Free Enterprise
• Fiscal Responsibility
• Fueling our Great Economic Engine
• Restoring a better balance in Washington

Liberty, properly nurtured, can lead to exciting progress.  A new "Liberty Tree" may have been just planted in the unlikely city of Alexandria, Virginia.

Let Freedom Ring