WVGOP Senate Caucus response to Gov. Manchin State of State Address

As Governor Joe Manchin prepares to deliver his State of State address to the people of West Virginia this evening, Senate Minority Whip Clark Barnes urges West Virginians to not get caught up in the governor's rhetoric. With unemployment hovering at 10% jobs are leaving West Virginia at a rate faster then they can be created and Obama and the EPA have all but declared war on West Virginia prosperity.

Republicans are worried that the democratic leadership is just covering up the problems until they become unfixable. Senator Barnes is urging state law makers to return back to basic conservative values that can save the state from a fiscal, energy, and taxation crisis.

Post War Recessions Job Losws Compared

Job loses in Obama Recession as compared to previous post World War II recessions.

Capito Reacts to Latest News on Two W.Va. Mine Permits

Congresswoman Expresses Cautious Optimism

WASHINGTON – Rep. Shelley Moore Capito, R-W.Va, released the following statement this afternoon in light of the Environmental Protection Agency’s latest announcement about the Hobet 45 mine in Lincoln County and the Spruce No. 1 mine in Logan County:

“While today’s news regarding the Hobet mine is an important step forward, it is critical that all parties continue to seek long-term clarity in this process,” said Capito.

“This issue is not about one individual mine, but about laying a clear foundation on which all miners and mine operators can build upon as they navigate the complex federal bureaucracy. I hope today’s announcement can help lay that foundation and finally bring clarity to a process made difficult by a politically driven regulatory process.

“In this vein, I hope that today’s announcement regarding the Hobet mine will serve as a model for ongoing discussions regarding the Spruce mine and countless others across our state. We must have cooperation between state and federal officials to protect West Virginia jobs and strike an appropriate balance between environmental protection and economic development.”

Capito Welcomes Ruling on Fola Coal

Miners Will be Able to Continue Mining Operations

CHARLESTON – Rep. Shelley Moore Capito, R-W.Va., released the following statement this afternoon in response to news that Judge Chambers has granted Fola Coal an extension that will allow miners to continue work at the Clay County site:

“This is welcome news for the community and welcome news for miners in Clay County,” said Rep. Capito, who joined Governor Joe Manchin, D-W.Va., and Rep. Nick Rahall, D-W.Va., in visiting the Clay County mine earlier this month.

“For nearly 500 miners facing the prospect of losing their jobs, today’s ruling offers new hope and an opportunity for resolution that does not involve massive job loss.

“As coal remains at the forefront of the legal and regulatory debate, we must continue to stand together on behalf of our miners and our mining communities.”

Capito Votes Against Democrats’ Year-End Spending Spree

House Leaders Rush to Spend Even More as 2009 Session Comes to Close

WASHINGTON – With the House of Representatives finishing up the year today with appropriations measures and a hike in the debt limit, Rep. Shelley Moore Capito, R-W.Va., didn’t mince words when discussing her views on the Democrat’s year-end agenda.

“This is nothing but more of the same: more spending, more taxes and little to show for it,” said the 2nd District congresswoman.

“My colleagues on the other side of the aisle are pushing an agenda with more spending on programs that can’t even spend what they have now. And they’re hiking the nation’s debt limit to $12.4 trillion so they can borrow the money they need to do it. It’s irresponsible, it’s ill-conceived and it’s unlikely to meet with any more success than what we’ve seen with the first stimulus package.

Capito noted the troubling state of the job market and expressed skepticism that the Democrat’s latest “jobs” bill would realistically address it. She also raised objections to Democratic efforts to raid TARP funds that were originally pegged to help pay down the debt.

“Don’t be misled, this is not a ‘jobs’ bill,” she said. “Last time I checked, after passing a $787 billion stimulus package, the national unemployment rate is still in double digits and West Virginia’s unemployment rate is on the rise.”

“Instead of repeating the mistakes of the original stimulus so my colleagues can feign concern on jobs, let’s offer real relief for small business owners and put a stop to the troubling anti-growth policies that continue to stem from this congress.”

Obama: Industrial Efficiency Bad!

Industrial efficiency is the foundation of our high standard of living. Building more goods with less workers lowers cost and raises the standard of living for all. It allows more people to purchase the same good increasing demand, requiring more product to be built thus increasing employment. The President needs to take an elementary Economics course before making any more statements on the economy.

Job Numbers Contradict Claims of Stimulus Success: Where are the jobs?

WASHINGTON – As the Administration pats itself on the back for supposedly “creating or saving” 2,400 jobs in West Virginia at the hand of economic stimulus legislation, count Rep. Shelley Moore Capito, R-W.Va., among those who are a bit more skeptical.

“For the 35,000 West Virginians who’ve lost their job since the beginning of the year, I’m not sure claims of 2,400 ‘created or saved’ amounts to anything worthy of applause,” said Capito. “Particularly when even the 2,400 is widely viewed by experts as likely inflated.”

Last week the Associated Press reported that stimulus jobs were likely over-stated by thousands, while commentary in outlets like the Wall Street Journal noted that even if taken at face value, the “created or saved” jobs miss the real issue: net jobs and the unemployment rate which have continued to rise in recent months.

“The stimulus plan was billed as a jobs bill, a private sector jobs bill,” Capito added. “Yet what we’ve seen is a $787 billion spending bill that’s falling well short of expectations. Now we’re stuck with paying for something that we didn’t order in the first place. We ordered a jobs bill, but got more unemployment and a mountain of debt instead.”

In another report penned earlier this week, the Associated Press reported that a vast majority of West Virginia’s “created or saved” jobs were centered in the government sector – contradicting the President’s previous claim that 90 percent of the stimulus jobs would be in the private sector.

In a state already feeling the heat from potential cap-and-trade legislation and continued economic uncertainty in the coal industry due to delays from Environmental Protection Agency regulators, Capito says West Virginians are anxious and concerned that they’re not getting their money’s worth when it comes to Congress’s big ticket items.

“The constituents I’m hearing from have one primary question,” she says. “Where are the jobs?”

Kook or Prophet?

Obama Administration Rescued the Econmy?

Unemployment Rates by County in West Virginia, Not Seasonally Adjusted

Area	May 2008	May 2009	Net Change
United States	5.2	9.1	3.9
West Virginia	4.2	8.5	4.3
Barbour County, WV	4.7	9.5	4.8
Berkeley County, WV	4.7	9.4	4.7
Boone County, WV	4.0	9.7	5.7
Braxton County, WV	4.4	8.3	3.9
Brooke County, WV	5.4	12.4	7.0
Cabell County, WV	3.8	7.2	3.4
Calhoun County, WV	5.6	14.2	8.6
Clay County, WV	5.5	11.5	6.0
Doddridge County, WV	4.5	8.0	3.5
Fayette County, WV	4.3	9.7	5.4
Gilmer County, WV	3.5	7.8	4.3
Grant County, WV	4.6	8.9	4.3
Greenbrier County, WV	4.7	10.1	5.4
Hampshire County, WV	3.8	8.4	4.6
Hancock County, WV	5.4	12.4	7.0
Hardy County, WV	4.1	9.8	5.7
Harrison County, WV	3.7	6.9	3.2
Jackson County, WV	4.8	13.2	8.4
Jefferson County, WV	3.7	7.4	3.7
Kanawha County, WV	3.5	6.9	3.4
Lewis County, WV	3.9	8.0	4.1
Lincoln County, WV	4.7	10.8	6.1
Logan County, WV	4.1	8.7	4.6
Marion County, WV	3.5	6.0	2.5
Marshall County, WV	4.5	9.3	4.8
Mason County, WV	6.7	13.0	6.3
McDowell County, WV	5.8	13.0	7.2
Mercer County, WV	3.8	7.0	3.2
Mineral County, WV	4.2	7.3	3.1
Mingo County, WV	4.1	10.4	6.3
Monongalia County, WV	2.7	4.7	2.0
Monroe County, WV	4.2	7.7	3.5
Morgan County, WV	5.4	9.4	4.0
Nicholas County, WV	4.4	9.0	4.6
Ohio County, WV	4.0	8.4	4.4
Pendleton County, WV	4.2	7.9	3.7
Pleasants County, WV	5.1	9.8	4.7
Pocahontas County, WV	9.7	17.2	7.5
Preston County, WV	3.5	7.7	4.2
Putnam County, WV	3.3	7.0	3.7
Raleigh County, WV	3.9	8.2	4.3
Randolph County, WV	5.6	10.4	4.8
Ritchie County, WV	5.1	9.8	4.7
Roane County, WV	6.0	13.2	7.2
Summers County, WV	4.5	8.2	3.7
Taylor County, WV	4.2	7.9	3.7
Tucker County, WV	6.0	12.5	6.5
Tyler County, WV	5.3	10.4	5.1
Upshur County, WV	4.2	8.2	4.0
Wayne County, WV	4.7	8.2	3.5
Webster County, WV	6.0	11.7	5.7
Wetzel County, WV	6.1	11.7	5.6
Wirt County, WV	5.9	14.0	8.1
Wood County, WV	4.6	9.5	4.9
Wyoming County, WV	4.6	12.0	7.4

NOTE: Rates shown are a percentage of the labor force. Data refer to place of residence. State and county data for both the current and prior year are subject to revision early in the following calendar year.

WV GOP Chairman McKinney: Democrats’ “Cap And Tax” Hurts West Virginian Families And Workers

WV GOP Chairman McKinney: Democrats’ “Cap And Tax” Hurts West Virginian Families And Workers

For Immediate Release Contact: Doug McKinney, M.D.

June 25, 2009 304.641.1205

Charleston, WV – West Virginia Republican Party Chairman Doug McKinney issued the following statement today regarding President Obama and Congressional Democrats’ so-called “cap-and-trade” program:

“As a lifelong West Virginian, I am extremely concerned about the impact of the Democrats’ national energy tax on our state. President Obama and Congressional Democrats’ ‘cap-and-trade’ plan is a large energy tax that will increase costs for the average American household by more than $1200, and endanger 10,000 to 25,000 jobs in energy production, an industry important to West Virginia. During a time of economic uncertainty, President Obama should not increase taxes on hard-working Americans.

“Unfortunately, Democrats in Congress are out of touch. The American people want energy independence and a cleaner environment without a national energy tax. Today, concerned citizens will deliver candles to the West Virginia Democratic Party and ask them to take action by urging their Democratic Members of Congress to vote against ‘cap and tax.’”

Daniel Hannan MEP: The devalued Prime Minister of a devalued Government

Opposing more rail regulation keeps our highways clear

As a longtime member and current secretary of the U.S. 50 Association, I am usually focused on state issues that have a detrimental effect on our highway system, and on Route 50 in particular. But all too often it is legislation at the federal level that has unintended negative effects on our road system. One such initiative currently in the works is legislation that would roll back the Staggers Act of 1980, named for Congressman Harley Staggers of Keyser, and reregulate our nation’s rail systems.

In West Virginia, of course, our railroads are particularly important to our ability to transport coal safely and efficiently to energy suppliers across the nation. Ever since they were deregulated, railroads have provided a means of transportation that helps keep coal affordable and ready accessible for energy providers in every part of the United States.

But another, often overlooked, benefit of our rail system is the service it provides in keeping our highways and roads from being even more congested with truck traffic than they already are. If the Staggers Act is repealed or seriously rolled back – as legislation in the last Congress would have done – our roads would be even more congested and damaged by shippers using semi trucks to an even greater degree than they are used today.

As everyone traveling our highways knows, our roads and bridges are deteriorating quickly, and we can hardly meet the needs of pothole repair and general repaving and maintenance as it is. Legislation that would raise the cost of doing business with our railroads would only increase the damage to our roads.

It’s important to compare the efficiency of our railroads with the extra burden that would be placed on our highways if the Staggers Act was repealed. For example, one typical multi-car locomotive does the work of more than 280 semi trucks. It costs $1 million to $3 million per mile to add capacity to rail, as opposed to $10 million or more per mile to add a lane to urban highways.

As the American Association of State Highway and Transportation Officials said in its Freight Bottom Line Report. "Relatively small public investments in the nation's freight railroads can be leveraged into relatively large benfits for the nation's highway infrastructure, highway users and freight shippers.

Furthermore, railroads are there times as energy efficient as trucks. A train can move a ton of freight 423 miles on one gallon of fuel, and are also three times cleaner. Since truck fatality rates are four times higher than train fatality rates, moving freight by rail will also save lives.

Since the Staggers Act was passed in 1980, the freight railway industry has seen drastic, quantifiable improvements, including a 168 percent increase in productivity, an 85 percent increase in rail traffic, and injury rates that have fallen by 68 percent.

For some reason, Sen. Jay Rockefeller has long been seen as an opponent of the railroad industry. But in this case, all West Virginians should hope that he will join many of his colleagues in opposing any effort to roll back the Staggers Act and reregulate our rail system. The railroad industry has been good for West Virginia, and for the coal business. Just as importantly from my point of view, our current system helps keep our highways and roads less congested than they otherwise would be. Let’s keep it that way.

In confusion there is profit

In the movie Operation Petticoat there is a great line that holds true in today’s troubled economy. When Lt. Com. Sherman (played by Cary Grant) asks where his supply officer, Lt. JG Holden (played by Tony Curtis), is during an air raid the commander is told, “When the air raid started they took off. All he said was, ‘in confusion there is profit.’” It is play on Rudyard Kipling who once reasoned that it was a good thing to keep one's head while all around were losing theirs. Right now across the country the Federal Government and State Governments are loosing their heads over the economy but if West Virginia’s government keeps its head, then we as a state can profit from it.

The way for West Virginia to take initiative is simple. The same bad economic policies out of Charleston that hurt us in good times hurt us in bad times as well and we must change those.

Two periods of strong economic growth stand out in recent American history the one started by John F. Kennedy in the 1960’s and the one started by Ronald Reagan in the 1980’s. Both have a common thread, both Presidents cut the tax rates which put more money in the hands of the people and businesses. This allowed people to spend more money on good and services spurring economic growth and the businesses used the additional money to expand operations providing those goods and services. In other words growth breeds additional growth.

The additional growth comes because people naturally want to be rewarded for their work and when they work harder they receive additional reward. It is the American Way, it is Capitalism. The problem in West Virginia is when compared to other states our businesses and people receive less of a reward for their hard work because of our tax rates and structure. When the state takes a bigger chunk than other states it simply reduces the incentive to work hard in West Virginia or encourages people to move to another state. The state has created a ‘tax wedge’ against prosperity. The removal of this wedge will lead to people willing to take the risk of starting a business and creating new jobs in the state and in bad economy that is more important than in times of prosperity.

Besides the high income tax rates there are two other primary ‘tax wedges’ hurting West Virginia businesses, the Business Franchise tax and the Inventory tax. The Business Franchise tax is based on companies net worth, it’s not a tax on Franchises as many believe and is paid by all businesses in the state. The tax remains whether or not the company is making a profit. This is a tax that companies in most other states do not have to deal with. So in bad economic times this tax has a greater impact on with West Virginia companies that are struggling to make a profit. If a corporation is looking at closing one of two plants, then it will make more economic sense for them to close the West Virginia plant because of the Business Franchise tax.

The same holds true for the inventory tax. Sales drop as the economy slides downward, inventories of unsold goods naturally raise. In West Virginia our inventory tax punishes companies more and more as their sales slide downward. In many cases, especially with small businesses, this can be the straw the breaks the camels back. In order to pay the additional taxes imposed by the state with falling revenues these companies must find the funding. For most this will result in employee layoffs and some bankruptcy.

West Virginia must now make the hard choices to profit in this confused economy. The worse the economy gets the more our business are punished by the state tax structure. The opposite of the way it should be. Consider that eliminating the Business Franchise and Inventory taxes will reduce revenue to the states tax coffers in the short term, but if we don’t eliminate them and those businesses leave or declare bankruptcy they will pay no taxes at all in West Virginia. The cutting of the tax rates will put more money in the pockets of West Virginians and West Virginia businesses rewarding them for their hard work by making it easier for them to weather the economic storm. Making these changes will allow more West Virginia companies to survive and attract those that want to expand with an atmosphere that rewards hard work.

Removing the tax wedges put in place by bad Charleston policies will allow West Virginia to keep its head while other states loose theirs.

The Slow Death of Century Aluminum

This may not fly on the radar of many around here, but it means a lot to my home county. Century Aluminum in Ravenswood, Jackson County, may shut down.

Consider the shock to this region if the paper mill shut down. Job losses, the cut in income to local businesses and other ripple effects would be crippling. Jackson County has to deal with that plus the loss of tax receipts that their schools and local government need.

This facility originally was Kaiser Aluminum, run by the business titan Henry J. Kaiser. Two decades ago, Kaiser ran out of steam and it became Ravenswood Aluminum. I honestly have no idea when it became Century.

This plant faced serious problems in the 1980s that stemmed largely from the steelworkers' union. I remember my stepfather had to travel there several times in one week to perform a simple computer repair. This may sound like a joke, but it is true. The light over the computer burned out and he could not see to do his job. Union rules specified that a certain combination of people must change the light. They could not get that combination for days. My stepfather showed up every day, feeling a little guilty that the company had to pay so much for time that he could not use to do his job. Eventually he offered to fix the light, but it was against union rules.

A few years later the union went on strike and the company hired replacement workers. I was in high school then and the tension was horrible. The same school that made a bold stand against Joe Camel could not bring itself to outlaw union made shirts that portrayed the corpse of a replacement worker with the motto "Scab Hunter" above it. The bedroom window of our quarterback was shot through in the mistaken belief that his brother, a replacement worker was staying there. Unpunished beatings of replacement workers happened over and over while jackrocks made the state highways dangerous to travel.

This foolishness is not over. A union facility in Maryland reprimanded a supervisor for helping employees to clean up a dangerous substance.

The point of this is that American industry is priced out of the competitive advantage it long enjoyed. Archaic and byzantine regulations have made it difficult for plants to keep costs down. Unions do have a role in the 21st century in terms of being safety and quality watchdogs while making sure workers get treated fairly, but it is time for them to decide whether or not it is more important to keep time honored, but bizarre, rules or jobs.

ISI Finds That America and Its Elected Officials Fail Civics

The results are in and most of us failed.

The Interscholastic Studies Institute released a report on November 20, entitled
Our Fading Heritage: Americans Fail a Basic Test on Their History and
Institutions. According to the report:

More than 2,500 randomly selected Americans took ISI’s basic 33question
test on civic literacy and more than 1,700 people failed, with the average score 49 percent, or an “F.” Elected officials scored even lower than the general public with an average score of 44 percent and only 0.8 percent (or 21) of all surveyed earned an “A.” Even more startling is the fact that over twice as many people know Paula Abdul was a judge on American Idol than know that the phrase “government of the people, by the people, for the people” comes from Lincoln’s Gettysburg Address.

This is astonishing. Even among those with Bachelor's degrees from colleges, the score is only slightly higher at 57%. That still fails. ISI blames colleges for not adequately teaching the foundations of our political and economic system. According to the study, those who talk frequently about politics have a better grasp of the system regardless of their level of education.

Bachelor's degree holders specifically have a poor understanding of such basic institutions as the presidency and the electoral college. They also do not grasp the essentials of capitalism.

Although colleges certainly are to blame, high schools have to realize they failed as well. I learned more in two economics classes in high school than I did in college. We not only heard about supply and demand, but were obliged to demonstrate a complete understanding of it. My did that teacher love supply and demand curves! They were tedious then, but I am thankful now. Too many teachers abandoned the seemingly tedious to be more entertaining. Another teacher taught civics with the same kind of thoroughness. Both were Republicans although you never heard them say so in class. They believed in teaching ideas, but keeping politics out, something I respect.

Will this study have any impact? Hard to tell since ISI is a free market think tank. It is clear that America is losing its sense of itself and its grounding in the past.

You can take the quiz for yourself at:

http://www.americancivicliteracy.org/resources/quiz.aspx

Byrd and Reid's Fairy Tales

Stimulus packages are not in themselves bad. Sometimes they can jump start faltering economies. When we consider them, we need to base the decision of whether or not to use them on hard facts. Senate Majority Leader Harry Reid and Senator Byrd issued a joint statement defending their $13.5 billion stimulus package. It claims that the package will produce 635,000 new jobs.

That is pretty astounding but according to the Heritage Foundation and the Washington Examiner, these numbers do not add up. The numbers are based upon a Department of Transportation study that itself claims that such numbers are likely false. The story is linked below.

http://www.dcexaminer.com/opinion/blogs/TapscottsCopyDesk/Byrd_11-12.html

Stimulus is fine and sometimes necessary, but let us have the facts first before we spend.

****************************************************************

Congresswoman Shelley Moore Capito was asking the same hard questions of auto executives this week. She asked them to prove the necessity of a bailout package when they had just received a $25 billion loan from the Department of Energy. Capito also pondered why some sectors of the economy received help and others did not, citing the fact that a number of West Virginia firms had gone out of business with no offer of help whatsoever. Her point was that we need our automakers, but we also need assurances that they will make the changes necessary to compete in the long term.

The Perception Driven Recession

Watching the news last night was kind of stunning. NBC hauled out its financial reporter who basically admitted that she had no idea why the market was slipping or what might happen next. Over and over again we hear that people's fears have led them to stop buying, change their investment habits, and basically cocoon themselves. Part of the problem here lies in perception.

First of all, a significant number of Americans have no real living memory of "hard times." The last time we really endured those was during the 1970s. If you will remember, a Democratic president attempted to implement share the wealth programs that burst the budget, shredded the fabric of society, and led to economic problems that lasted until Ronald Reagan followed the ideas of Milton Friedman and led us to prosperity.

Since then the economy has done extremely well. Our standard of living has dramatically increased, even among much of the group considered poor. we talk less about the poor starving and more about the poor being unhealthily obese. Two minor hiccups aside, we have seen the most dramatic period of expansion in national history. However all economies are subject to cycles and apparently this period of prosperity is ending. But why?

For one thing, people have no context of economic difficulty. If you listened to the Bush hating media all you heard about was how hard the economy was. A period of unemployment under 6% would have been considered amazing in the Carter years, but during the presidency of George W. Bush it was the Great Depression all over again. Those that actually lived through the Depression probably laughed at such claims. Media driven perceptions made people believe that the economy was bad when it was not. we had expansion during wars, attacks on our soil, and Katrina. These shocks individually would devastate an unsound economy.

Then came real problems. The sub prime mortgage crisis, driven by Clinton era mandates, weakened the financial sector. Add to that the energy bubble (now thankfully deflating) and you get a double whammy. Still in and of themselves, these should not have wrecked the economic ship. Perception has caused near panic to take place in investing and major purchasing. This brought on the specter of a very tough recession, tougher than necessary. Certainly Bush and Congress have done a great deal to help restore confidence, but it has not been enough to offset the damage inflicted by the media.

Hard times are difficult and people will have problems for a time. The only positive that can come from this is that it will give the current generation an understanding of what economic trouble really is. We are certainly not headed for a Great Depression or even a 1970s type recession, unless Obama tries to tax us out of our problems. However we must remain confident and optimistic that in the long run we will endure and return to prosperity again.