Conservative Union's “Principled” Stand is No Scandal

The American Conservative Union is one of the largest and most powerful conservative groups in Washington. Yesterday the Politico reported that they demanded $2-3 million from FedEx in exchange for taking their side in a legislative dispute against UPS. FedEx rejected their demands and a few days later, David Keene, the chairman of the ACU, signed a letter in support of UPS.

Some people are trying to depict this pay-or-play incident as a scandal. In fact, it is the exact opposite. This is proof that the ACU is truly dedicated to taking their principles to the ultimate conclusion.

On their statement of principles page they claim they believe: “That the market economy, allocating resources by the free play of supply and demand, is the single economic system.” As you can see, offering their political support in exchange for money is what they have always stood for.

Things like honor, credibility, integrity, truth, beliefs, and principle are just more resources that should be allocated based on the free market. They are just more resources that should be bought by the highest bidder. The American Conservative Union should not be attacked but celebrated for sticking strong to its conservative world view.

Can Protectionism Pay for Health Care Reform?

Today, Josh Gerstein at Politico, reported that the White House updated budget calls for a massive increase in “user fees” charged by the U.S. Custom and Border Protection. The new budget calls for collecting a total of $124 billion in CBP inspection user fees every year starting in 2010. In 2007, the CBP collect only $33 billion in revenue. The new increased user fees would be quadruple what they were in the past.

This increase in CBP inspection user fees will have strong protectionist implications. Somebody will need to pay this extra $91 billion in fees. The cost of imported goods will rise as a result.

What will the Obama administration use this extra $91 billion a year for? Universal health care legislation is estimated to cost roughly $1 trillion over the next decade or roughly $100 billion a year. Interestingly, $91 billion a year from CBP user fees should be enough to pay for a new health care reform bill.