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2008

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   2nd Session, 108th Congress
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2008 Liberty Index     
Executive Overview
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Year of the Bailout
     The 2008 Republican Liberty Index of Congress continues to show a shift of the political spectrum from a "left-right" orientation, as was exhibited during the middle years of the Bush Administration, to an "up-down" orientation. By "up-down," I refer to President Ronald Reagan’s saying that the real choice we face is not "left" or "right," but "up" to the maximum liberty consistent with order, or "down" to the abyss of an all-powerful government.

During the middle years of the Bush Administration, Republicans voted better on economic liberties and Democrats better on personal liberties. With the War in Iraq, the corrupting tendency of power, and the social conservative agenda in ascendancy, libertarians who might have been inclined to support Republicans became increasingly conflicted. Support for Republicans eroded and they lost their majorities in Congress, state legislatures and Governors in 2006, and they lost the Presidency in 2008.

In 2008, with Democratic majorities in Congress and with Republicans in Congress acting increasingly independent of the President, Republicans looked like veritable Champions of Liberty. But, this might only mean that they oppose increasing the speed of the nation’s movement toward socialism.

Constructing the Index
     As
always, construction of the 2008 Liberty Index involved the identification of 20 roll call votes on each of two dimensions of freedom: economic liberties and personal liberties. In the process of deciding upon the lists of votes, I relied on advice from a small group of people each of whom is a current or past officer of the Republican Liberty Caucus. The final decisions were mine and do not necessarily reflect the opinions of the Republican Liberty Caucus.

As always, identifying 20 votes is relatively easy with regard to economic liberties. My lists of economic liberty votes for each chamber cover a wide range of issues. These include spending, taxation, and industrial, labor and trade policy. The most prominent votes of the 2008 session involved the bailouts of the FHA, Fannie Mae and Freddie Mac, the mortgage industry, and the automobile industry. I’ll say about these votes below.

My personal liberty votes include some personal liberties associated with conservatives such as the right to keep and bear arms, and some associated with liberals such as the rights of the accused. It also includes some orphan liberties such as the right of adults to decide what they do when in private. We uphold the family, local government and free association, and we oppose government-funded speech (i.e., propaganda).

The personal liberties votes with which I have to work reflect the agenda of the session and may not be representative of a Congressional member’s true voting tendency. I cull many of these votes from proposed amendments to bills, and, in particular, from proposed amendments to appropriations. During much of 2008, the House of Representatives operated under rules for considering bills that allowed few if any amendments and government was funded mostly by continuing resolution, which had the result of limiting my choices.

The Bailout Votes
     T
he most crucial votes of 2008 involved bailouts of the Federal Housing Authority, Fannie Mae and Freddy Mac (the two federally-chartered mortgage bankers), the mortgage industry, and the automobile industry. The underlying problem, it became clear, was that, with the collapse of the housing bubble, many mortgages were "underwater." That is, the values of the homes securing the mortgages were less than the mortgages. In these cases, the borrower often has little interest in making mortgage payments. And, defaults by many threaten to collapse the values of houses in general, resulting in a spiraling-down of housing values.

The first bailout votes involved a recapitalization of the Federal Housing Authority, which had become insolvent due to problem with the low- and zero-down payment mortgages that it had guaranteed. The next bailout vote involved Fannie Mae and Freddie Mac, two depression-era mortgage banks created by the federal government which - although somewhat privatized - continue to enjoy the perception of a federal guarantee. Thus far, we’re talking about $300 billion for the FHA and $100 billion each for Fannie Mae and Freddie Mac.

The third bailout vote involved the creation of a $700 billion authorization to borrow, known as the TARP fund, for the U.S. Secretary of the Treasury to be used to buy various and sundry damaged assets, such as mortgage-backed securities. And, the fourth bailout vote was to lend billions of dollars to the domestic automobile manufacturers.

Including loans from the Federal Reserve to induce JP Morgan Chase to acquire Bear Stearns and to keep AIG afloat, and various Congressional add-ons to the TARP bill, and we’re talking of $1.5 trillion. And, to paraphrase the late Senator Everett Dirksen, a trillion here and a trillion there, and soon we’re talking about real money.

The idea of all these bailouts was to prevent damaged assets from being dumped onto the market, causing their values and the values of similar assets to fall, perhaps causing a financial panic, and perhaps even a deep and prolonged recession. Thank goodness for the sudden revival of Keynesian economics in Washington or else – who knows – the stock market might have collapsed, our domestic automobile companies may have gone bankrupt and we might have fallen into a severe recession.

Selected Issues
     A
mong the other interesting roll call votes used in this year’s Liberty Index were several concerning foreign aid. In the Senate, roll call vote #181 was an amendment to a bill that would greatly the expand AIDs Relief by eliminating its tie to meeting the conditions set forth in the Millennial Challenge (e.g., democratic governance). The amendment would have maintained the program as an instrument of U.S. foreign policy, as opposed to converting it into an international entitlement program. The amendment failed 64 to 31. In an analogous vote in the House, roll call vote #197 would have established a condition for debt relief to be democratic government. Only 41 Democrats voted against establishing this criterion, although 2 others voted "present."

In the House, roll call vote #414 was to ban the sale or importation of "non-human primates," this year’s manifestation of the animal rights agenda. It passed 302 to 96. In the Senate, this measure was subsumed into roll call vote #189, which did not survive a filibuster vote, 52 to 40. Monkey business thus remains legal for yet another year in the United States.

In the House, I have roll call votes on U.S. involvement in both the Mexican drug war (#393) and the Colombian drug war (#499), both of which passed overwhelmingly.

Also in the House, I have both an amendment (#600) toughening up a proposed DC gun ban ban (that’s right, to ban the D.C. gun ban) and the vote on passage (#601). As sometimes happens, the crucial vote is on the amendment, although both votes are meaningful.

Top Scores: House
     I
n the House of Representatives, Congressman Ron Paul of Texas returned to the top spot, with a combined average score of 96. In a seven-way tie for second place were: Congressmen Flake (AZ), Franks (AZ), Lamborn (CO), Broun (GA), Price (GA), Foxx (NC) and Hensarling (TX). In a four-way tie for ninth place were: Congressmen Rohrabacher (CA), Feeney (FL), Marchant (TX) and Bishop (UT). Virginia Foxx becomes the first female to score as high as second in the Liberty Index.

Technically, Congressman Rush of Illinois finished last (or, first from the pro-government point of view) with a combined average score of zero. However, he was absent from Congress for much of the year and only registered a few roll call votes. Finishing next to last was the troika of Scott (GA), Cleaver (MO) and Nadler (NY). Close behind them were Gutierrez (IL) and Meeks (NY).

The lowest-scoring Republican was Gilchrest (MD), with a 26; and, the highest-scoring Democrat was Cooper (TN) with a 42.

In the area of economic liberties, 18 Republicans scored perfect 100s, while 68 Democrats scored perfect 0s.

The toughest votes for Congressmen who otherwise voted correctly were (in order): the Mortgage Bailout, Earmarks and AIDs Relief. The toughest votes for Congressmen who otherwise voted incorrectly were (in order) the Mortgage Bailout and the Progressive Caucus Budget.

In the area of personal liberties, Congressman Paul registered a perfect 100, followed by three of his fellow Texas Republicans, Carter, Gohmert and Marchant. Thirteen Democrats scored 7 or 8.

The toughest votes for Congressmen who otherwise voted correctly were (in order): Colombia Drugs, FISA and Detainee Interrogation. The toughest votes for Congressmen who otherwise voted incorrectly were Detainee Interrogation and Debt Relief.

Top Scores: House
     O
ver in the Senate, we have a two-way tie for first place, with Senators Coburn of Oklahoma and DeMint of South Carolina both scoring 76. These were the only two Senators classified as "Libertarian." Finishing tied for third were Senators Kyl and McCain of Arizona, with 75’s, and finishing fifth was Senator Ensign of Nevada, with a 74.

From the opposite perspective, Senators Lautenberg and Menendez of New Jersey shared the Party of Big Government’s gold medal, with scores of 20. Sharing the Party of Big Government’s bronze medal were Senators Boxer of California, Klobacher of Minnesota and Schumer of New York, with 22’s.

On the economic component of the index, three Senators achieved perfect 100s, Senators Ensign, Kyl and DeMint. Most of those who did well but fell short of perfection were tripped up by the farm votes. Other tough votes for otherwise free-market Senators involved the Fannie and Freddie Bailout, Earmarks, Auto Company Bailout and Flood Insurance.

From the socialistic perspective, there were a total of 13 perfect zeros. Another 14 would have scored zero but for the Flood Insurance vote, which – while it would promote the cause of socialism – would be environmentally problematic. Another three would have scored zero but for the Income Tax vote which was mostly window-dressing. In the Senate, the so-called Blue Dog Democrats were simply Running Dogs for the radical left-wing of their party.

On the personal liberties component of the index, there is little to say about the scores of individual Senators. Almost all the action was between the 40 yard lines. Some of the votes on one measure were, nevertheless, curious.

Foreign Policy Issues
     I
n the 2003 Liberty Index, I counted the vote to authorize the use of force in Iraq as an anti-liberty vote. This was my personal call and did not reflect any official stance by the Republic Liberty Caucus. Every year since then, I have called for an exit strategy. From 2003 until 2007, I observed a shift of the political axis from something like a libertarian versus authoritarian ("up-down") direction to a conservative versus liberal ("right-left") direction. And, I have observed the deterioration and eventual loss of the Republican political majority.

By 2008, the Democrats were calling if not for an immediate withdrawal from Iraq then for a timetable for withdrawal. At the time, Senator (now President) Obama was the leading proponent. So, why is it that so many Democrats did not vote "aye" on the Iraqi Mission vote? Is it that Senator Obama and other Democrats, like Senator Kerry, vote "aye" when they mean "nay," and "nay" when they mean "aye" on war resolutions? Or, is it that they wanted the issue for the election more than the wanted a resolution of the issue?

Over on the Republican side, four Republicans crossed over to the Liberty Index position, every Republican Senator and these four in particular having voted to authorize the use of force in Iraq five years prior. These were Senators Hagel of Nebraska, who had become an outspoken critic of the war, Voinovich of Ohio, Dole of North Carolina and Smith of Oregon. The latter two were in tough re-election campaigns that they would eventually lose.


Clifford Thies
Clifford F. Thies
e-mail

Past Chairman, Republican Liberty Caucus
Professor of Economics and Finance,  Shenandoah University


Republican Liberty Caucus Political Action Committee

44 Summerfield Street, Thousand Oaks, California 91360
 

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