Farewell to Arlen Specter

Senator Arlen Specter has exited, stage left, from the Republican Party. The truth is, he has long been a Republican in name only for decades. Having begun his tenure in the Senate in 1981 as one noted for his independence, he has evolved into a very serious Liberal. One could argue that Democrats like Bill Nelson of Florida and Evan Bayh of Indiana were as conservative as him.
In spite of this, he had his moments that were beneficial to conservatives. One could argue that Supreme Court Justice Clarence Thomas (certainly one of the most conservative jurists on the Supreme Court) would not be if it were not for Specter championing him in a very grueling confirmation process. In fact, the bulk of the help conservatives have gotten from Specter has been in the appointment arena, but then again he has helped many Liberals get into their various offices as well.Spectorbelieves that the President should have discretion to make appointments. His help to conservatives in the appointment area is philosophical, but not in the way those on the right desire.

The final straw for conservatives when it came to Specter may have happened in January of this year when the Senator voted for the President’s far reaching “bailout” that dramatically increased the size of the government’s budget and scope of its power, but the electoral problems facing the Senator go much further back. In 2004 conservative Congressman Pat Toomey won 49 percent of the vote, on a much smaller budget, in the Republican Primary. This came with Spector getting substantial support from President George Bush and Sen. Rick Santorum (himself almost as conservative as Toomey). Spectoer knew it wasn’t looking promising in the future. When Specter sided with the Democrats on Obama’s package (one of only three members in either House of Congress to do so), Toomey couldn’t wait to go after Specter again. He immediately resigned his position from the Free Market think tank, Club for Growth to get ready to run again.

There was no way Specter would survive another Republican challenge in 2010. There have been rumors that Specter was changing parties for years, he formally made that decision when he casted his vote in January for the President’s package.

Those Republicans who are moderate or lean to the left will cry “the sky is falling” with the departure of Specter. The most common concern will be the end of the GOP’s ability to filibuster. Anyone of either party can filibuster and it will require 60 votes to bring it to a stop. Spector’s failure to support a filibuster in January is among the reasons the bill passed. For most conservatives, Specter’s departure is a victory in restoring the GOP into a party that means something. It is a first step towards becoming a party that stands for traditional values, free enterprise, and limited government. This is a first step in the Republican Party’s own road to recovery.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Barack Obama: A Progress Report

Recently I invited friends of my radio show and other media to explain how they would grade President Barack Obama's first 100 days. The response was huge. This has become a popular past time lately with radio personalities, policy experts, and people standing around the water cooler. I thought I should ride this trend.

I have noticed that most of the discussions have been largely arbitrary and without specific criteria. People generally agree that the idea behind a report card is to judge the President's performance, but on what basis? Since every President swears to defend the Constitution, that should be its criteria. Furthermore, since this President is still serving his term and has not completed it, this is better described as a "progress report." With that, here are a few areas worth consideration:

• Economic integrity. Unfortunately, most people are unaware about what the US Constitution has to say about government spending, but I encourage readers to start with a short visit with Article I, Section 8 of the Constitution. There they will find around eighteen areas that the government is aloud to operate in and none of them are that sexy or expensive. One will find post offices, post roads, and standard weights and measures. Anything beyond issues such as these were to be left to the states and the citizens thereof. One can probably argue that one cannot expect a politician to purely apply these principles, but this Administration is only furthering the rapid expansion of government in a way we haven't seen and into new roles (such as socialized medicine, the government take over of energy, and other programs). Grade: F


• Fiscal responsibility. In the early 1980s I worked on a project to protest the government's action to increase the national debt to $1 trillion. This was a debt that took almost 200 years to reach. In a breath taking move, this Administration's budget will increase that debt by $1 trillion a year. Furthermore, the Administration has established a debt ratio that is comparable to what is common in third world countries. Grade: F


• Monetary policy. In order to fund a government that is growing out of control financially, the United States increasingly looks like a debtor nation going to foreign country with hat in hands and asking other nations to bail them out. China alone holds almost $800 billion of that debt in Treasury Securities. However, what the US government cannot get other nation's to finance, the Administration will likely use monetizing the debt as a part of its solution. We have already seen a move in this direction with the federal government increasing the money supply by $1.4 trillion in one day. This type of policy will eventually lead to hyperinflation. Grade: F


• National Security. Obama is sending a very strong message to the world of being a very weak President when it comes to his relationship with the rest of the world. He allowed himself to twice be embarrassed in a photo op with Hugo Chavez, he has blown empty rhetoric at increasingly aggressive (and nuclear) Iran and North Korean regimes, he is providing relief for the Communist government at Cuba by allowing US citizens to support citizens there, and he is dramatically cutting defense spending as our nation fights two wars. Grade: F


• Behavior. Most people don't remember the important "attitude" or "behavior" aspects of a progress report, but it is extremely important in this case. Obama has consistently appointed Cabinet members with an incredible level of arrogance and hypocrisy (we have a Secretary of the Treasury, the person in charge of IRS, who didn't pay his taxes). Furthermore, he is creating Czars through out his Administration who are not subject to Congressional scrutiny, which goes against his own mandate of honest government. Grade: Unsatisfactory.

Virtually everyone I have met of all parties are very concerned about the direction this nation is going. Even Democrats have told me that they "wanted more government, but not this much." Some who have voted for OBama are anxiously looking forward to opportunity to vote again and vote different. That process can begin in 2010 when people can change the composition of the Congress and begin to hold this Administration more accountable.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

"Free" Government Programs and Other Lies

While trying to enjoy a quiet Sunday afternoon at home, one of my sons came to my bedroom and told me "there are some teenagers here to see you." Funny, since I have a house full of teenagers, I am the last one they want to see. The curiosity got the best of me and I walked out where I found two young people in their late teens, dressed very casually and each holding a clipboard with a stack of paper and a pen.

The conversation went something like this:

"May I help you?" I asked. "Yes, I was wondering if you wanted to sign a petition to lower the community college tuition for people in our area." I was familiar with the issue (I am one of those odd fellows that watch local news) and went along with him. "How does it work?" I asked. "All you have to do is sign this petition and if we get enough signatures it will be on the ballot for this next election and if that happens and it passes...we will have lower tuition." At this point it gets very hard for me to not get sarcastic. I would like to say, "oh we are voting for a tuition fairy who will lower our school fees" or "ah, you finally figured out how to grow a money tree," or something like this, but I decided to behave. "So if this passes, how will it lower tuition." The young man kind of looked down unsure of himself. "I'm not sure," he said. I knew the answer and informed him that the tuition would be lowered through higher taxes for everyone in the area and that many people who don't have children will be forced to pay the tuition of others. He thanked me for the information and said, "I guess you are not signing?" I said, "that is correct" and he walked away.

It is through this form of false advertising that government tends to grow. People think these programs are magical, they can simply appear with desire. It is like the Fox News poll where they asked people how government was going to pay for the various bailouts and 25 percent said the "government has its own money." You would think these are the answers of small children, but Fox assures me that only adults answered the survey.

The public attitude towards Uncle Sam being Santa Claus also reminds me of the late Sen. Russell Long (D-LA) who said "don't tax you, don't tax me, tax the fellow behind the tree." That is exactly how tuition "is lowered" for people, by burdening everyone else.

One of the best examples of the lie of "free government programs" is whenever I take a trip to Galveston, Texas and ride the state's ferry. Shortly after you take off the captain announces that "this free service was brought to you by the Texas Department of Transportation." In reality it was paid for by taxpayers through out the state, many who live 15 hours away and have never even seen the Gulf of Mexico.

A sensible policy that government on all levels should pursue is a truth in advertising. These agencies should be forced to inform boat riders what it cost the taxpayers annually or the individual impact in terms of taxes. That is the kind of transparency we need in government.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Socialized Medicine on Strategy Room

My second appearance on Strategy Room (FoxNews.com) this past week moved to a topic that hits close to home to me -- socialized medicine. Eric Bolling had already navigated the panel through his 3 PM hour through a plethora of topics and they were primed by the time I got on the show.

My mother came right off the boat from England. She was a war bride who left her family to join her spouse in the United States. She was young when she did this, a mere 18 years old. Maybe, as a result, she was one of the biggest fan of England you would ever find. She would go on and on about the "virtues" of British socialism and how "terrible" it was that people in this country were responsible for their own health insurance. Having had visited with members of my family in "the old country" many times over the years, my instincts tell me that my mother would have likely had a very different view of British socialism if she lived under it.

My aunt (her sister) use to tell me how such a huge portion of every paycheck was devoured by the socialized health care system, she was amazed by the large number of people who were subsidized to not work, and was disgusted by how it became almost impossible for the average Brit to buy their own home. Regarding health insurance, she said national health care is "great until you need it." It provides "enormous peace of mind" until you actually get sick. Ironically, this aunt eventually died in the British health care system. She was diagnosed with cancer and could not believe how slowly the government dragged its feet in her treatment. Things were even worse when it came to my grandfather when he became ill. Doctors informed my family that treatment options were "limited" because he no longer paid taxes. My aunt was convinced my grandfather died because of the rationing of health care (a common problem when the government controls or owns anything).

This anecdote hits close to home, but the facts support her argument that socialized medicine does not work:

• According to England's own National Institute of Health, eleven percent of the population of England has very expensive private health insurance. This allows them to get treated as a person, rather than a crowd, and to be able to hold their doctor accountable in a way you can't have when the government is your vendor.


• In countries such as Canada it is common for people to head to the US for much of their health care (particularly urgent). Many individuals will go to a veterinarian to get tests, like MRIs, because the waiting lists are too long with government doctors.


• In Australia's socialized health care state, more than half of the population has private insurance.


• More than 60 percent of innovations in health care are from the United States with a much smaller part being carried by the rest of the world. If the US chooses a socialized system, innovation will be severely damaged because it is the incentives in our system that promotes changes and improvements.

One of the best discussions I have had on the subject was with David Asman of Fox Business when he was a guest on my show (then called the Houston Business Show). While visiting in England his wife had a stroke and barely survived. Because of his resources he was able to get her the best care possible in that country, but concluded that an indigent person in the United States has a better opportunity for recovery than the best insured in England. The harsh reality is very simple, why would we believe that a government that can do so few things effectively, could handle the huge task of providing for all our health care needs?

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Robert Reich's Surprising Grade on Obamanomics

Robert Reich, the former Secretary of Labor under Bill Clinton, has not been at all shy in his support of President Barack Obama. In a recent article on the President's economic agenda, he made his bias well known by stating plainly that he "is a big fan of this administration." Since he so clearly "showed his cards" in terms of his view of Obama, you would think his report card would be nothing short of glowing. You might want to think again.

Reich graded the Obama administration in three areas: the budget, the stimulus package, and the bank bailouts.

The Budget: A. Reich could not begin his commentary with a more syrupy assessment, stating that "It's an extraordinary vision of what America can and should become, including universal health insurance and environmental protections against climate change. And the budget takes a little bit more from the rich and gives a little bit more back to the poor and lower middle class, which seems appropriate given that the income gap is wider than it's been since the 1920s. I'd give the budget an A plus except for its far-too-rosy economic projections." He fails to point out that more companies are moving from the US than at any time in US history and one of the main reasons why is the fact that we have the second highest tax rates on business among the 16 industrialized countries. Furthermore, the top 50 percent pays 96 percent of all the revenues of the government. This "class conflict" approach is going to lead to the worse form of taxation of all, which is the the loss of jobs. Furthermore, this budget goes where no budget was intended to go before. It provides huge reach by the federal government in the most dangerous ways. I give it a F.

The Stimulus Package: B. Reich takes the rhetoric down some in this area, noting that this package is "Good as far as it goes but doesn't go nearly far enough. $787 billion over two years sounds like a lot of stimulus. But the economy is operating at about a trillion and a half dollars below its capacity this year alone. And considering that the states are cutting services and increasing taxes to the tune of $350 billion over this year and next, the stimulus is even smaller." The reality is, this stimulus package is so enormous it can only be funded with "funny money." That is, the mass production of currency that will only be able to compete with Monopoly money in value. This administration pumped $1.2 trillion dollars of worthless currency into the economy on one day alone, which will make our currency (and our debt) worthless to other countries and only push us further down the road towards economic depression. I would give Obama an "F" again.

The Bank Bailouts: F. Finally Reich and I find an area of agreement. Reich states that "The bailouts are failing. So far American taxpayers have shoveled out almost $600 billion. Yet the banks are lending less money than they did five months ago. Bank executives are still taking home princely sums, their toxic assets and non-performing loans are growing, and the banks are still cooking their books. And now the Treasury is talking about converting taxpayer dollars into bank equity, which exposes taxpayers to even greater losses." It is surprising to see someone as well educated as Reich to simply not realize (or seem to care) how far reaching Obama's failure is in this area. Yes, we both give the administration an "F," but there is more, so much more. All that Reich said was correct, but why would the administration want to continue to spend in this area at such prolific levels and why it is prohibiting these banks from paying back their loans is not even addressed. It seems fairly clear to me that the issue is not helping the banks, but increasing government control of them. The more the administration denies that nationalization is its objective, the more it does to move towards that objective, no matter how little that does to spur economic growth.

In the end, Reich says Obama deserves a "C+" (which is slightly generous based on the grades he gave, but I will leave the math to others). That is a sad mark to come from someone who describes himself as a "fan" of this administration.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Can Obama Lead in the Real World on Fox News Strategy Room

One of my favorite media activities is to spend time on FoxNews.com Strategy Room. Eric Bolling hosted my time on and, as usual, we literally covered the entire map of headlines, with a heavy focus on international affairs.

One of the brilliant ideas behind Strategy Room is that its panelists are made up of well informed policy generalists -- a dying breed in media, but one of the most important if the objective is to provide a contextual understanding of what is going on in current events. It provides a well informed discussion that the general viewer can appreciate.

This week's big focus was how Barack Obama was handling international affairs. Of particular interest was Obama's encounter with Hugo Chavez of Venezuela. Most Americans were shocked by the warm "Kodak moment" between the leader of the free world and a vicious dictator. The panel's assessment was largely negative, but ranged from the more benign "sophomoric," to one of being revealing of Obama's view of the dictator. Some simply stated he "didn't know what he was doing" and he approaches things as an "academic." I believe that he approaches the job with one of the most frightening examples of "on the job training" I have seen and, at least appeared as a man who felt some affection for Chavez. To make matters worse, 24 hours later Obama allowed himself to pose with Chavez giving him a book that decries the US role in Latin America (“The Open Veins of Latin America: Five Centuries of the Pillage of a Continent,” by Eduardo Galeano). The old adage "first time, shame on you; second time, shame on me" certainly would have worked for him this week.

Strategy Room also discussed the problem of Iran's development of a nuclear missile program and the fact that the days before Israel takes unilateral action are numbered. Simply put, Iran President Mahmoud Ahmadinejad has made it clear, he believes Israel is a nation that should not exist. Israel cannot afford to do nothing while Iran becomes more dangerous. In our discussion we reviewed the fact that we do have history of Israel taking a similar action (in 1981 against Iraq for the same reason s as they would attack Iran) and that although the world largely complained, the US grumbled lightly and gave a collective sigh of relief. In 1981, Israel only had to fly through Iraq's air space. To attack Iran, it is believed they will have to fly through Iraq's air space again, which is now under US control. How will Obama respond to unilateral action? Candidate Obama made it clear that the protection of Israel is a US priority, but he has done nothing to remove the pressure on Israel to take action (which would be in the best interest of the entire Middle East). George Bush didn't help in this area either and every request Israel made on both Presidents have fallen on deaf ears. Conclusion? Obama is too much of an unknown, he is clearly inexperienced, and none of the panelists wanted to make a leap and determine what this Administration will do in regards to Iran.

Strategy Room is one of the most diverse and entertaining news programs on any platform: TV radio, or online. It is because of its slate of great hosts and eclectic group of panelists that thousands regularly gather around their computer screens, rather than their televisions.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Ronald Reagan and Economic Freedom

One of my biggest frustrations is the reckless abandonment by politicians when it comes to articulating the importance of economic freedom. In fact, I haven't heard a Presidential candidate build a message on this theme since Ronald Reagan and I believe that Gov. Sarah Palin may be the first national candidate to do such in her Vice Presidential bid.

On the eve of the Fourth of July, 1987, President Ronald Reagan delivered an address entitled "America's Economic Bill of Rights." This was an important time for our Republic, because in addition to celebrating the birthday of the Declaration of Independence at this time, we were also celebrating the 200th Anniversary of the United States Constitution on that year. I cannot think of a better time or make such an address.

Reagan stated right from the beginning what he believed about the Founding Fathers view of economics and noted that the American Revolution had a central theme against "No taxation without representation" and that they "knew that the right to earn your own keep and keep what you earn is central to America’s understanding of what it means to be free. This country was built by people seeking to support themselves and their families by their own labor, people who treasured the right to work and dispose of their earnings as they saw fit, people who were willing to take economic risks." In making his case, Reagan focused on "four fundamental freedoms" and he bolstered these with several guiding principles.

Those four freedoms are, according to Reagan:

The freedom to work.

The freedom to enjoy the fruits of one’s labor.

The freedom to own and control one’s property.

The freedom to participate in a free market.

These four principles were fundamental in the building of this country and they have been under attack before Reagan went into office and are all the more so today.

In order to secure these rights, Reagan advocated ten different initiatives to reach these objectives that included:

• "Reduce subsidized government competition with private citizens." Whenever government could use private companies to do government functions, it should, in order to foster real job creation and to reduce bureaucracy.



• "The Freedom to Enjoy the Fruits of Your Labor: You have the right to keep what you earn, free from excessive government taxing, spending, and borrowing." Now more than ever, this fundamental right is endangered.



• "To protect you from overtaxing by the Government, I will propose as part of the balanced budget amendment submitted to Congress, a requirement for a super majority vote by Congress before your taxes can be raised." I think this was one of the most bold and creative initiatives ever proposed by a President. Unfortunately, it never became a reality. It is needed now more than ever.



• "To protect your right to own and use your property, my administration will pursue our successful efforts in the courts to restore your constitutional rights when the government at any level attempts to take your property through regulation or other means." I don't think Reagan even fully realized how far the reach of government would go in this area. Today, malls are developed in the name of "imminent domain" and people are removed from their property because of birds and "wetlands."

Reagan went on to address welfare reform years before Clinton, the need to strengthen intellectual property rights, and more. The entire speech deserves to be read in its entirety. In our current times, all of our freedoms are endangered in a way we had not seen historically. In a time such as this, we need to be reminded that our economic freedoms matter.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Supporting the Constitution just Is Not that Cool

When Secretary of Treasury Tim Geithner was taken aback by Michele Bachman's aggressive questioning about the role of the Constitution in governing today, he was clearly uncomfortable. The Minnesota Congresswoman was clearly "not cool" in his view. It seems that we are now lead to believe that "smart," "sophisticated," and "relevant" individuals might appreciate how wonderful the Constitution was, but it is not really that useful today.

I recently did a radio interview where I went to great lengths to cite specifics of the Constitution. According to the host, the audience loved it and you could see that by the number of questions we were receiving. One comment stayed with me though. One person said, "I agree with everything you are saying, but how do you convey your message without sounding nuts." "Gee, thanks," I thought, but at the same time I understood his point. He was simply trying to tell me that, if you stick too close to the Constitution, you are often going to be dismissed by the people you talk to on the subject.

I'm afraid he is correct. To believe in the Constitution in a manner that the Founding Fathers intended, is to be willing to have the same attitude they had as they wrote the Declaration of Independence and together they stated that: "for the support of this Declaration, with a firm reliance on the protection of Divine Providence, we mutually pledge to each other our Lives, our Fortunes, and our sacred Honor."

People like:

• Carter Braxton of Virginia, who was a wealthy planter and trader. He saw his ships wiped out by the British Navy. He sold his home and properties to pay his debts, and died in poverty.
  
• Thomas McKeam was under such constant pursuit by the British that he was forced to continually move his family. He served in the Congress without pay, and his family was kept in hiding. His possessions were taken from him and he too died in poverty.
  
• Francis Lewis had his properties destroyed. The British jailed his wife and she died within a few months.

I could go on, but the theme is similar... sacrifice, poverty and often death for what they believed in. Today, most people in politics have a rather smug view of the Constitution. Years of political correctness have led people to dismiss the law of this land as something of value in years past, but totally "out of date" today. Recently I interviewed a member of the Tea Party and mentioned that the dramatic moves of the government in so many different areas was clearly against the idea of state rights as seen in the Tenth Amendment. Her response was, "well, I don't really like to talk about the Tenth Amendment because that was used as an excuse for institutional racism." Well I hate to tell you, but state rights is the centerpiece of the US Constitution. That document is about the dispersion of power and they saw strong states and local governments as an primary means of achieving that.

To dismiss the Constitution because it has been used to protect racist policies in the past (and has since been corrected) is to advocate a government without law. That is exactly what we have today. A huge population that has come to the belief that the Constitution is irrelevant and instead of a government that is ruled by law, we have a government on autopilot. This is dishonest government.

I challenge people to study the Constitution and value its relevance today. I encourage people to challenge those who question the currency of the Constitution and ask them what they believe should govern our nation today. More than likely, their answer will be far more flimsy than the document that helped to make the US, the most free and prosperous country in the history of the world.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Tea Party Members Need to Quickly Harness Their Energies

I was exhilarated by the opportunity to speak in Houston, Texas to thousands (estimated at around 8,000) who came out to defend their freedoms against a government that is spiraling out of control. I saw moms, dads, babies, and grandparents. They were all Americans who are worried about this nation's future and they were among hundreds of thousands who gathered at locations around the country to be heard.

When you address thousands, you don't see individual faces. In my case it was a sea of bodies and signs. I told that group that I was excited to see the "dozens" and maybe even "hundreds" that the media would report showed up to that event. The crowd roared at the humor, but I was not joking, and the Houston Chronicle reported that "hundreds showed up." The article included a video clearly showing thousands and you have to wonder how stupid the media is or how stupid they believe we are.

Although I was inspired, I was also concerned. The vast majority of the people involved in this movement tend to be quite new to the political process who have expectations and agendas that simply will not stand the test of reality. I have been involved in politics since the late 1970s and have never walked far from it in decades. There are others in the Tea Party movement with some experience, but they are few and far between. The vast majority not only lack an understanding of our political process or the most effective means of action, they are proud of their lack of experience and look at people with experience with suspicion (it also doesn't help to have the CNN label behind my name).

After I spoke I was greeted by a young man wearing camouflage and a name tag simply described as "Domestic Terrorist," making fun of Barack Obama's expanded use of the phrase to include anyone who questions the direction this country is going. The young man was fairly bright, full of energy, and has the desire that is needed to help his cause. But how will he tap into it?

I asked him what he was doing in 2010, since that will be an important year if the Party is going to have an impact (because of the need to focus on the Congress). This twenty-four year old agreed and told me he was going to run for Congress. It didn't seem like a great use of time, since there are so many other opportunities going on, but I went along with him. "Where?" I asked. "I live in Stafford, Texas, who ever the Congressman is there." That would be the very newly elected Pete Olson, who shares this young man's beliefs on most issues and is not an "old timer" who simply needs to be kicked out. This wasn't all, this young man wanted all members of Congress, regardless of affiliation or beliefs, to be collectively thrown out. That means that good members would be replaced by bad. I guess the logic is that since there are more "bad" than "good members," I guess they believed you would have the opposite if you simply "cleaned it out." It sounds simplistic, but things like these alone are not the only thing necessary to achieve change.

Many of the thousands of people at these events are like this young men -- well intended, but in a difficult position to help facilitate change. Many, simply don't know the best routes to facilitate a move towards restoring America's values. The most important time in US history may turn out to be 2010. The center of the political universe will be the US Congress and the US House of Representatives in particular. If the Tea Party wants to make a difference, it will have to be focusing on the Congress and it will have to be done in a concerted and organized way.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Strategy Room Tackles the Tea Parties

While the vast majority of news programs have treated the Tea Party movement as a fad or phenomenon beyond comprehension, there has been very little serious discussion by the media about what this grassroots effort is all about, what motivates them, and what is its long term potential of being a serious force in the years to come. Until now. On FoxNews.com Strategy Room today, we dealt with that exact topic.

Eric Bolling, who hosted the hour I was on, asked some provocative questions that require individuals to think a little deeper about the direction of the Tea Party. They were the kind of questions that Conservatives in media tend not to ask because of their euphoria that such a movement exists and Liberals won't discuss because they are choosing a strategy of simply ignoring such efforts.

Bolling asked the panel:

• Is the Tea Party made up of future or current tax defectors? At first, I found this question surprising, because I hadn't event considered it as a possibility. Then again, I have been approached by people who are beginning to speak in those exact terms. It is hard to tell whether such individuals are joking or if they are seeing the failure to pay as a viable form of protest. In my opinion, if this movement gets noted for such action, it will be dead in the water. I agree with the majority who believe that the federal government has grown out of control and that it is mismanaging our money. On the other hand, like most Americans, I don't believe in lawlessness and the base of this grassroots effort will be quickly discredited if it moves in such a direction.



• What should the Tea Party stand for? This is a very important question and is one that provides the kind of soul searching that the movement needs to ask itself. My concern is that the movement becomes purely a tax revolt campaign when the problems facing our country include so much more than that. Excessive regulations, licensure laws, the perversion of the political process (e.g., moving the Census Bureau to the White House), and state rights are just a few of the items that should be front and center of all our political lives. Taking a multi-issue approach will help protect it from the image of merely trying to help the rich and will broaden its appeal.


• Should Tea Party members be expected to put their money where their mouths are? Virtually everyone has received or is receiving some form of refund or rebate from the government, what is the "right thing" for Tea Party members to do with such? In this lively discussion, Bolling suggested sending the money to a select charity. In my opinion, the dollars should go to transform the Tea Party from an angry mob into a vibrant organization. Although it was suggested that if any of these participants keep the money, they will be hypocrites, I have a slightly different spin. I believe that the Obama Administration is going to tax people well beyond any check they receive from the government. Inflation alone will devour any savings they may receive. I believe a case can be made for keeping such rebates to offset other government related costs.

The debate is on whether the Tea Parties are going to be a major movement or a mere blip on the political radar screen. Ironically, asking tough questions, like those raised on Strategy Room, will play an important role in making it a meaningful and lasting effort. Only through such questions will the Tea Party find its identity.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

The Political Earthquake of 2010 is Starting to Rumble

Most people are expecting a political earthquake like we have not seen since 1980 or 1994. The expected arrival of that event is 2010, but rumbles towards that date are happening now. What is interesting is that one of the earliest targets among those who have grown disgusted with a government out of control isn't a Democrat, but long time Senator Arlen Spector of Pennsylvania. This Republican Liberal has long been the subject of Conservative disdain.

Spector has been suspicious in the eyes of the Conservative rank and file for years. Not only did he vote for the terrible TARP package last Fall, he went so far of being only one of three Republicans to vote for Obama's massive package in January of this year. For many, this only added insult to a political career that has long injured Conservative causes.

Today it is being reported in everything from the Wall Street Journal to CQ Politics that Pat Toomey, Chairman of the fiscally Conservative Club for Growth, is resigning from that position in order to make a run for the United States Senate. His reason for leaving is "to pursue other opportunities." He goes on to state that "I feel extremely honored to have been able to lead such a great organization," in a statement released Monday."And while I will certainly miss the Club for Growth, I am comforted knowing that the organization will be left in the capable and talented hands of my former congressional colleague" (former Rep. Chris Chocola, R-IN).

Toomey is no stranger to elected office and was once a US Representative from the State of Pennsylvania. While in office he collected a solid Conservative voting record on many issues and not just economics, the National Review noted during the debate over who McCain should choose for Vice President that:

-Toomey holds a 0% rating by NARAL (National Abortion Rights Action League), indicating a solid pro-life voting record
-Toomey is in favor of school prayer
-Toomey voted yes on the 2003 energy policy proposed by President Bush
-Toomey voted no on prohibiting ANWR drilling
-Toomey has repeatedly voted in favor of free trade
-Toomey is rated A by the National Rifle Association

It goes on to point out that, of course, "Toomey is a tax cutter and a limited-government proponent. The Club For Growth's efforts reflect his commitment to these conservative principles."

After the massive Tea Party events on Wednesday, April 15, many are going to be looking at a place to funnel their energies. The center of the political universe will be the US House and US Senate. If the Tea Party hopes to be more than just a fad, they need to pursue changing the make up of the Congress in 2010.




Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Three Mistakes the Tea Party Movement must Avoid

The Tea Party movement is a spontaneous, passionate, and in many respects, disorganized effort to restore those principles that made the United States the greatest country in the history of the world. Like many mass movements in its early stages, it is poised to rewrite the future of this Republic, or to be a mere footnote in US history. Decisions this movement is making today, will have everything to do with its legacy tomorrow.

Currently, there is plenty discussion about what the Tea Party should do. I want to focus on three things it needs to avoid.

• The Tea Party must never become partisan. Fewer people identify themselves with a party now than at any time in US history. The reason why is because the major parties have failed us miserably. The Reagan Revolution wasn't about partisan politics, but important principles regarding the way government viewed the economy, family, and national security. The 1994 "Contract with America" movement was actually motivated over issues of accountability. You had check kiting Members of Congress who wrote bad checks without consequences and a Post office Scandal (Members would turn their huge allocation of stamps into cash and even included drug laundering) that brought down many Democrats, including the Chairman of the powerful House Ways and Means Committee (Dan Rostenkowski). The current Tea Party is also about accountability, which is very similar to the 1994 elections and needs to maintain that nonpartisan appeal.


• The Tea Party must not become a single issue movement. On the one hand, Americans have every right to make this movement about taxation. The US has the second highest tax rates on businesses than any industrialized country in the world and the pressure on taxpayers in general are only growing. But there is a widespread attack on America's freedom that include excessive regulations, pressure from organized labor that is poised to damage the US competitive advantage, the disenfranchisement of our political freedoms (thanks to Obama's political antics, e.g., the movement of the Census Bureau to the White House in an effort to effect Congressional Districts, the attack on members of Obama's own party who won't vote lock step with the Administration, etc.), and more. If the movement only worries about taxes, it will be separating itself from those concerned about other issues and validating those who believe that people in this movement only care about money. It isn't about money nearly as much as it is about freedom. That includes economic freedom.


• The Tea Party must not become about personalities. Right now there is jockeying in the movement all over the country by individuals who want to lead it going forward. If a single individual rises to fill the role, the movement will likely be in trouble. That person will probably have a partisan history that will make him or her easy to dismiss by the movement's opponents. I'm reminded of the early days of the Reagan Revolution, which was led by people who were "mad as hell," like Eddie Chiles in Texas and Howard Jarvis in California. These were individuals who were leaders in business, not politics, and had no further agenda then restoring America's freedoms. In spite of how powerful of a personality Reagan had, he was, in many respects, the epitome of the movement that elected him, rather than the creator of it.

There are, I am sure, other pitfalls the Tea Party should avoid, but by being ever diligent on these three important areas, the Tea Party will be a force to be reckoned with for years to come and should leave a positive and powerful impact on the future of this country.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Strategy Room: More Reasons Big Media Should Fear the Little Screen

Today I had the opportunity to be a guest on my favorite show, on the little screen, Strategy Room on FoxNews.com. Eric Bolling did a fantastic job of leading his panel on the "ADD Hour" (as he likes to call it) on exploring Somalian Pirates and more on today's program. The group of panelists were diverse, the discussion was lively, and Bolling maintained that perfect balance of letting it "rock and roll" without losing control

One could easily retort about my claim that the show is a small screen phenomenon by saying, "maybe, but only because it is on the small screen." In reality, with the exception of those who play with the carrot with the smiley face that is something of a show mascot, this program is very similar and better than those that enjoy a big screen presence. It is the fact that it is on the small screen that it is a threat to other traditional media.

The number of quality channels that people have to choose from are virtually without limit. We have comedies, dramas, documentaries, current events, reality etc., etc. etc to choose from. It is true, we have similar "limitless" programming online, but few have the quality of Strategy Room when it comes to competing with the big boys. Very few indeed. There are Strategy Room from 9 to 5, Monday through Friday, there is the new FoxBusiness.com Live, and the CBS News' Washington Unplugged (which is a high video quality, but terrible in its editorial bent). Other than that, most programming is amateurish or not unique to the Internet (shows that have appeared elsewhere on TV, but archived online).

I believe Strategy Room has a further edge over the other few uniquely Internet based programs -- the number of hours it is on. With the program running 8 hours a day, people have all the reasons to stay with it throughout the day. It dominates the Internet. Increasingly, people may channel surf on their TVs , but won't think about touching that web channel, since they are getting big screen quality on the Internet, for what often feels like "non-stop."

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

Companies that may Point to Recovery

There is no question that we are now in a recession and it is a severe one at that. Now the thing people will look for are indicators that the economy is improving. Some companies might provide the signs of when the economy is finally heading in the right direction (according to 247WallSt.com).

Target. The giant retailer is known as one who caters to people who are seeking a little more than what they can get from Walmart. That "little more" includes slightly higher prices (if, for no other reason than the fact that Target cannot buy at the volume of Walmart) and that has led to some economic slowdown for the store. So far Target sales has seen a noted drop this year. When Target begins to see an increase in sales, you might also see a turn around in the economy.

Starbucks. At the height of rapid economic growth, Starbucks was an economic pleasure palace for the happy middle class. However, with declining prosperity, people are bailing out on the coffee shop and many have remorse for the dollars they spent on a small cup of coffee. Part of the problem is plain out saturation. Even after closing hundreds of stores in 2008, I personally know an area in the very affluent Galleria section of Houston that has at least 4 locations in less than a square mile area. When these come back, the economy will be on the mend as well. You will likely see that after a turn around at Target.


CBS. It is now the only major broadcast TV network that largely has all its eggs in one basket (TV). Its competitors -- Fox (which owns radio, print, web platforms, and TV), ABC (Disney World and other entertainment venues), and NBC (whose parent company is GE, which seems to own everything) are far more diversified. The Stock Market has punished CBS' lack of diversification as its shares have dropped. When those shares rise, so will the economy's prospects because this form of broad base advertising is expensive and it will show businesses are believers in the prospects of growth. This too will come a little later in the recovery process, in my opinion.

Dell. The Dell Computer company, which was once considered a leader in its industry, is now considered one of the weakest. In spite of its efforts towards innovation and customization, it still finds itself limping behind. When Dell has a turn around, the economy as a whole will be enjoying serious recovery. Mind you though, Dell was struggling when the economy was fairly strong, so it too may take a while to catch up.

E*Trade. The weakest of the big three online trade companies has been among the longest to suffer. This company, too, is an indicator of how the economy is fairing.

With the current policies of the Obama Administration, it will be surprising to see these (or other businesses) improve. However, when their is a turn around, these five companies will be among those to watch.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

What Works on the Small, Works on the Large

Recently my father-in-law visited from Minnesota and I really enjoy his company. We both love golf, classic rock, and my family, but when it comes to politics, we tend to have to keep our conversations short.

While we were both golfing we began discussing his future retirement, at that time he noted that he planned on moving to South Dakota. I knew he was from there originally, but I also knew he loved his adopted home. So I asked him why he was leaving and he said, "that's easy, South Dakota has a much better tax situation for retirees than virtually any state in the country." I cannot begin to state the many times he had told me how unpatriotic businesses were to leave the country because of tax and other laws.

With that I asked him, "so here you are, the average American, who is smart enough to change where you live to protect your wife and you from higher taxes, but you don't expect businesses to do the same thing with often large numbers of employees and even greater tax implications?" It is very rare to get him to get quiet once we gets started (and he would say the same about me), but he had that knowing look on his face that this conversation was over.

The United States has the second highest corporate tax rates of any industrialized country in the world and we are working hard to try to become number in this dubious area. Businesses are about efficiency, profit, and looking out for the interest of its stockholders. Taxes, like regulations and licensure laws, are just the fixed costs of doing business. If the costs get too high, businesses have no choice but to move to better places for commerce. It isn't personal, it is just business.

Most of the things that work or don't work on a micro level, translate the same on the macro. Because in both cases they include human nature and humans tend to respond to incentives (and disincentives) the same way. If the government could eliminate their fantasy and replace it with reality, all of our lives would be so much better.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

The More You Tax Something, the less You get of It

From the time I was 16 I was passionate about the future freedom of our country. Early on I came across a book entitled An American Renaissance, by then Congressman Jack Kemp. Kemp was an early architect of Reaganomics and an important soldier in the "Reagan Revolution."

One of the concepts conveyed in that book is that "the more you tax something, the less you get of it." Also, "the more you subsidize something, the more you get of it." Those simple words are at once a "no kidding" moment and, at the same time, really quite profound. That philosophy was being thoroughly violated in the world of Government in the 1970s under Jimmy Carter and it is all the more so the case in the world we live in today.

The New York Times Headlines states that "Jobless Rate Hits 8.5% as March Payrolls Fall by 663,000." This headline has followed months of business owners voting with their pink slips at the election results of last November. This is due to the fact that candidate Barack Obama made it perfectly clear that he intended to raise taxes on job creation.

Because of the Democrat's control of the Congress and the position of Obama, President Bush's tax cuts were not renewed. Those cuts had a direct effect on those who create jobs. Because of the failure to renew those cuts there was a marked increase in the Capital Gains tax, which will significantly undermine the economic activity that leads to more jobs. Than there is Obama's own proposal to dramatically increase the taxes of those who make $250,00 or more a year -- the very people who create most of the jobs. Add the many other taxes and regulations (which are very similar to a tax in their results) they are adding on the economy and we have a government waging a war on employment.

So Obamanomics are increasing unemployment by penalizing job creation, so what is it subsidizing? A great place to look is Obama's recent pork package also known as "stimulus" and the impact it would have on the various states, such as Mississippi. According to Fox News, Obama's measure would force states to allow people to receive welfare, even if they are not willing to work. For example, Barbour noted, that if the state of Mississippi wants to receive $54 million in increased unemployment benefits, they will have to expand the benefits to those not actively looking for employment or willing to take employment if offered. Barbour's decision not to take it led the state to receive less than $4 million of the expanded benefits.

In sum, Obama is taxing employment and subsidizing unemployment. The current headlines could be many things, but not surprising.

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.

"I Believe in Free Enterprise, Except..."

For almost two decades I have been sitting across the table from politicians, authors, business leaders, and economists as guests on one of my radio programs. There have been the occasional crazies who want to socialize everything, but the vast majority of them -- like the majority of your neighbors and co-workers -- claim to support free enterprise.

These conversations about the virtues of the market go the same way. "The free market is so amazing and powerful, it is able to create jobs and new industries. It is terrible that government seems to do everything in its power to undermine the economy's potential." However, you dig a little deeper and then you start finding exceptions. Most of the time those exceptions are based on what they do for a living. Attorneys who represent clients who have suffered property damage will say, "they support free enterprise, except when it comes to the regulations they place on insurance companies." The farmer will tell you, "I definitely support free enterprise, except when it comes to agriculture subsidies." Scientists definitely believe the economy is best left alone "except when it comes to research grants." You get the idea.

Our entire socialistic system has evolved over the decades to accommodate exceptions like these above. Now we have millions of Americans who support free enterprise, "except." That "except" is bankrupting us and destroying our freedoms.

One of the most inspiring things I ever witnessed was the "Damn Right" campaign for President of Pete dupont in 1988. In that year, I actually voted for the former Delaware Governor while managing a Congressional race in West Texas. I have the feeling I was the only one who casted that vote in that town. He lost big time in the ballot box, but his message is as potent today as it was then. Pete duPont had no problem telling farmers, seniors, scientists and anyone else that they were part of the problem and that everyone would have to sacrifice in order to restore our freedoms. It was "damn right" for people to carry their own weight and not seek government as a solution.

Those who founded this Republic were aware that it was the tendency of government to expand over time. That is why they believed in the dispersion of power and they wanted to make changes in policy hard to achieve. The states would not ratify the Constitution with its "necessary and proper clause" that could be used for all form of abuses, without a Tenth Amendment that makes it perfectly clear that "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." They envisioned a nation of nations, with each state offering their own unique approaches to solving problems, all of them checked in their excesses because people could leave that state to another that provided more freedom. The decline in our liberties and the increase in socialism, are all linked to the undermining of the political institutions in government designed to protect us from an authoritarian federal government.

So, where does the long path towards the restoration of freedom begin? John F. Kennedy is famous for saying "Ask not what your country can do for you - ask what you can do for your country." We need to ask ourselves, what "exception to freedom can I give up for my country?"

Kevin Price is Host of the Price of Business, the longest running show on CNN 650 (M-F at 11 am), AOL Radio, and CBS Radio. Eric Bolling of Fox News and Fox Business says that Price’s Blog “is very influential and moves the blogosphere.” Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com.