Monday, September 29, 2008

Why Obama: Country First

I'm not going to pretend that Barack Obama is some benevolent politician (oxymoron, anyone?) who acts as a selfless trustee of public welfare, but at least he didn't pick a running mate who's vastly unqualified to be Vice President--or President--of the United States.

Just read the following exchange between Katie Couric and Sarah Palin:

COURIC: "Why isn't it better, Governor Palin, to spend $700 billion helping middle-class families who are struggling with health care, housing, gas and groceries; allow them to spend more and put more money into the economy instead of helping these big financial institutions that played a role in creating this mess?"

PALIN: "That's why I say I, like every American I'm speaking with, were ill about this position that we have been put in where it is the taxpayers looking to bail out. But ultimately, what the bailout does is help those who are concerned about the health-care reform that is needed to help shore up our economy, helping the—it's got to be all about job creation, too, shoring up our economy and putting it back on the right track. So health-care reform and reducing taxes and reining in spending has got to accompany tax reductions and tax relief for Americans. And trade, we've got to see trade as opportunity, not as a competitive, scary thing. But one in five jobs being created in the trade sector today, we've got to look at that as more opportunity. All those things under the umbrella of job creation. This bailout is a part of that."

When I first heard this all I could think of was "The Puppy Who Lost His Way". If you know what I'm talking about, you'll appreciate this video. Wait for the ending...




I think Tina Fey actually improved on this answer during the opening skit on SNL. Sometimes reality is funniest in its unadultered form.

Obama on the Capital Gains Tax

I just came across this article that clarifies Obama's widely misinterpreted views on the capital gains tax. (Fox News and CNBC have both falsely characterized Obama's plan as an across-the-board capital gains tax hike to 28%-30%, which is simply not true.) According to the ABC News blog post, he plans on raising the capital gains tax from 15% to 20% on those making $250,000 or more per year. As far as I'm aware, the long-term rate will be unchanged. In this case, the rate on capital gains exercised within a year of the original investment will increase to 20%, but only for those making over $250,000.

For the record, I'm not a huge fan of this policy. Although the effects of raising taxes are not always clear-cut, a higher rate can cause both a reluctance to invest capital--which can stunt economic growth and job creation--as well as a tendency to stick with under-performing investments to avoid pay the higher capital gains rate. These phenomena may also cause tax revenue from the capital gains to go down, even with a higher short-term capital gains tax rate. (Keep in mind that this capital gains tax is voluntary and that it is only paid when a person decides to sell an investment.)

I'll leave you with a video of Obama fielding a question during a debate with Hillary Clinton in which he was asked about a comment made to CNBC's Maria Bartiromo, saying he would certainly not raise it above 28%. Keep in mind that he has since clarified his position on capital gains tax and proposes a hike up to a maximum of 20%.

Sunday, September 28, 2008

Tina Fey as Sarah Palin on SNL



This is an excellent parody of Katie Couric's interview with Sarah Palin, which many people have called disastrous for the McCain campaign. I, for one, thought the Charles Gibson interview was more telling of Palin's lack of foreign policy credibility. The Couric interview was simply icing on the cake.

Wednesday, September 3, 2008

Why Obama: We're All Americans

"We're all Americans," as Laura Bush and Joe Lieberman recently pointed out when calling attention to Hurricane Gustav. Why would anyone need to tell us in such a heavy-handed way that we're all Americans? Was there ever a doubt? Although I hate to acknowledge it, sometimes there is. Would anyone doubt that more swift action would have been taken had a whiter, more affluent city had been in Katrina's path?

Another travesty that has been more conscious and deliberate has been the denial of basic civil rights to gay and lesbian couples. When it comes to the rights of two consenting adults who want to formalize their bond, the burden of proof should be on those who wish to deny those rights. Sure, the founding fathers probably never envisioned a day when men would marry other men. Then again, they lived in a different time when no one would ever dare articulate such desires. But what the founding fathers did envision was the threat of the majority that could infringe on the rights of the minority. John Adams, in his great wisdom, constantly warned us of this.

Today, many people still think that a majority rules in all situations. If 51% of the population opposes gay marriage rights, then gay marriages should remain outlawed. We have lulled ourselves into the same mistakes of the past. It's not up to your own personal whims who has rights and who doesn't. Civil rights are not extended to all citizens because it's personally convenient, but because it's the decent thing to do in a free, fair society. And gay people are indeed citizens. They are Americans. I hope Laura Bush and Joe Lieberman realize this someday.

I won't let Obama off the hook on this issue, either. He has taken an official stance against gay marriage and has thrown gays under the proverbial bus by downplaying the issue's importance in the election. However, he has very good reason to do this. The issue hurts him politically. The more people are talking about gay marriage--and there are more revved-up evangelicals than there are outspoken gay rights activists--the greater liklihood that McCain can energize his base and divert attention from glaring Republican failures in the last eight years. I trust that Obama is truly embarrassed by this position that he must take and that he will--as he has promised--work for the promotion of gay couple rights, even if those rights don't include the word "marriage."

McCain's position seems to be more so opposed to gay couples. Even though he uncomfortably mumbled support for gay rights in civil unions when visiting Ellen Degeneres' show, he has supported a proposition in his own state to ban gay rights. See the commercial below, which refers to Proposition 107, a law that does not expand gay rights but restricts them:


Anyway, I don't need to spend much time explaining which candidate will be friendlier to civil rights for gays. Obama might not be the champion that many would hope for, but in this election we only have two choices. Yes, Obama's civil unions rehtoric reeks of "separate but equal" policy, but the nasty rehtoric that has come from Republicans in recent years is more reminiscent of an even darker time when Dred Scott had no rights that a white man was obligated to recognize...

Anyway, I think we'll look back someday and wonder why it took us so long to come around on this issue, the same way it took us too long to extend the vote to women and blacks. Let's get it right now and do the right thing (and save ourselves from undue future embarrassment). In 1983 John McCain opposed the creation of a federal holiday commemorating Martin Luther King. He later said, "I was wrong and eventually realized that, in time to give full support [in 1990] for a state holiday in Arizona." That's very touching, but let's put someone in charge who will take make the decisions now, and not nearly a decade late, to treat people with the respect they deserve. Obama is right: McCain is well-meaning, but he doesn't get it.


Monday, September 1, 2008

Why Obama: It's Energy, Stupid

As I've stated before, I don't have any delusions of my own clairvoyance. I don't know what Obama will do once he takes office. However, if I had to take my chances on our current energy crisis, I'd want someone in office who isn't inextricably tied to oil interests. Instead of tying McCain or his party to big oil interests (which can be done), let me take the easy (and best) route by saying this: John McCain has had the better part of three decades in Washington to help diversify our energy portfolio, and look where it's gotten us.

Sure, for much of that time the popular voice wasn't clamoring for energy independence (and McCain, in all fairness, has fought hard across party lines for other causes), but let's fast forward to the present. Even now, McCain sees offshore oil drilling as the centerpiece of his energy plan. (He at least talks about it plenty.) For the record, I am actually in favor of allowing offshore drilling. However, if a presidential candidate props up drilling as a major piece of his energy policy, it's evidence of his commitment to our old energy ways. If McCain claims oil that hits the marketplace in twenty years is going to make such a big impact on our energy portfolio, he is essentially assuming that oil will indeed play a major role twenty years from now.

***For you finance whizzes out there, try to discount any risky investment twenty years out and tell me what it's worth today. The answer: not much. Sure, the investment will be well worth it for US oil companies, but we're talking about a world marketplace in which oil companies control only 4%. The impact for a few companies will be significant. The impact on current oil prices will be insignificant.***

Now, with all of this said, we don't really know Obama's level of commitment to new energy sources without seeing him in action in the White House. But my money is on Obama to take on foreign oil interests in the favor of the environment, political stability, and--eventually--the economy.

***It's really the culmination all three of these interests that makes the push for renewables compelling. I'm actually a recent convert from the "market forces and technology will fix it" crowd. I used to think that large investments in alternative energy sources would be frivelous unless those energy sources yielded energy per dollar spent on par with traditional energy sources. What I wasn't getting was the incredibly dire economic and political consquences that can arise from being dependent on other countries for our energy needs. Add to that the environmental benefits of clean energy, and you can understand that the production from alternative energy sources run a lot deeper than what we can calculate in nominal GDP.***