July 31, 2007

Veto!

It is accepted that the GOP is in a heap o' trouble in the next election. I do not dispute that. As the FBI raids Sen. Ted Stevens's (R - Leavenworth) house, the GOP will have more seats to defend, the war is unpopular and the base is enervated and split on immigration and trade.

I think quite a few of these could be fixed by a public fight over the farm bill. Yes, Senator Grassley (E85 - Iowa) would likely crumble, but you've got to break some eggs to make an omelet.

The WSJ Ed Page is calling for a veto as well:

The overstuffed farm bill now waddling through Congress -- toward a possible veto by President Bush -- has attracted so much waste that everyone with a genuine interest in agriculture is feeling disheartened. Yet the bill has earned unlikely support from the labor union lobby.

Hmmm. Could this be at all related to a new and unprecedented Davis-Bacon requirement for ethanol construction? Davis-Bacon is the Depression era holdover that forces federal construction contracts to pay a "prevailing union wage" -- determined by the Department of Labor -- rather than a market wage. This anachronism was attached to the bill last week by House Democrats; a staffer tells us he's never before seen Davis-Bacon in a farm bill.

The bill is flush with subsidies to produce ethanol, the corn-based alternative fuel that still can't compete on a free-market basis. More ethanol requires more biorefineries. Democrats plan to mandate Davis-Bacon wages for workers building those refineries. With nonunion builders unable to compete on price, each new refinery could cost as much as 35% more. In many rural areas with little or no union activity, this artificially high labor cost could even make the prospect of building an ethanol plant a net loss.

Because ethanol production would be significantly more expensive under Davis-Bacon -- and because the government requires ethanol in gasoline -- ordinary Americans would foot the bill for this union handout in the form of higher prices at the gas pump. That veto is looking more attractive by the moment.


This could energize the base and differentiate the GOP from the Democrats, who will be led in 2008 by the most pro-big-government candidate since FDR. And it would be the right thing to do.

Find your inner Grover Cleveland, Mr. President!

Posted by jk at July 31, 2007 1:00 PM
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