Escolar Documentos
Profissional Documentos
Cultura Documentos
DDI 2008
Serrano
ECON GENERIC INDEX
ECON GENERIC INDEX............................................................................................................1
******Bizcon................................................................................................................................12
BIZ CON 1NC..............................................................................................................................13
BIZ CON 1NC..............................................................................................................................14
Bizcon increasing.........................................................................................................................15
Bizcon increasing.........................................................................................................................16
Investor Con Stable......................................................................................................................17
Investor Con – Brink...................................................................................................................18
Consumer Confidence High........................................................................................................19
Investor Confidence - High.........................................................................................................20
Investor Con High – Mortgage Lenders....................................................................................21
Link – Investor Con.....................................................................................................................22
Link – Regulations.......................................................................................................................23
Link – Regulations.......................................................................................................................24
Link – Regulations.......................................................................................................................25
Link – Regulations.......................................................................................................................26
Link – Regulations.......................................................................................................................27
Link – Finesregulations...............................................................................................................28
Links- Mandates..........................................................................................................................29
Links- Emission Reductions........................................................................................................30
Links- Regulations Cause Blackouts..........................................................................................32
Link – Kills Investment...............................................................................................................33
Link – Kills Investment...............................................................................................................35
Regulations Kill Biz Con.............................................................................................................36
Link - Litigation...........................................................................................................................37
Link - Litigation...........................................................................................................................38
Link - Litigation...........................................................................................................................39
Link – Permits..............................................................................................................................40
Links: Cap and Trade..................................................................................................................41
Links: Cap and Trade..................................................................................................................42
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Litigation Kills Invest Con..........................................................................................................43
Regulations Kill FDI....................................................................................................................44
Biz Con s/o - Tech.........................................................................................................................45
Biz Con Spillover – Domestic......................................................................................................46
Biz Con Spillover - Global...........................................................................................................47
AT: Regulations Help Businesses................................................................................................49
Flight Bad – Econ/Environment.................................................................................................50
AT: No Flight................................................................................................................................51
Consumer Con Key to Econ........................................................................................................52
Biz Con Key to Growth...............................................................................................................53
Investment Key to Econ...............................................................................................................54
Investment Key to Econ...............................................................................................................55
Foreign Investment Internal Link..............................................................................................56
Foreign Investment Internal Link..............................................................................................58
AT: Regulations Competitiveness............................................................................................59
Bizcon key to Econ.......................................................................................................................60
Indo-Pak war................................................................................................................................61
****Biz Con Aff Answers............................................................................................................63
2AC Biz Con Frontline................................................................................................................64
2AC Biz Con Frontline................................................................................................................66
2AC Biz Con Frontline................................................................................................................67
Small business confidence low....................................................................................................68
Election Kills Bizcon....................................................................................................................69
BIZ CON CYCLICAL................................................................................................................70
Bizcon declining - flooding..........................................................................................................71
Biz Con Low.................................................................................................................................72
Biz Con Low.................................................................................................................................73
Consumer Confidence Down......................................................................................................74
Investor Confidence Low............................................................................................................75
Consumer Con Low.....................................................................................................................76
Consumer Con Low.....................................................................................................................78
Consumer Con Low.....................................................................................................................79
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Aff – No Effect on Investment.....................................................................................................80
Regulations Increase FDI............................................................................................................81
Aff – T/ Increases Productivity...................................................................................................82
Energy prices -> inflation............................................................................................................83
*** Fiscal Discipline.....................................................................................................................84
1NC Shell(1/2)...............................................................................................................................85
1NC Shell(2/2)...............................................................................................................................86
Fiscal D is High Now....................................................................................................................87
Fiscal D is High Now....................................................................................................................88
Fiscal D is High Now....................................................................................................................89
Link- Emergency Spending.........................................................................................................90
Obama Fiscal D............................................................................................................................91
LINK - EARMARKS...................................................................................................................92
LINK - EARMARKS...................................................................................................................93
Snowball Link..............................................................................................................................94
Snowball Link..............................................................................................................................95
Link-Wind....................................................................................................................................96
Link- Pork Barrel Spending.......................................................................................................97
Link – Perception.........................................................................................................................98
Link – Ag.......................................................................................................................................99
Link – Hydrogen........................................................................................................................100
Link – Taxes................................................................................................................................101
Link-Nuclear..............................................................................................................................102
Link-Alternative Energy...........................................................................................................103
Link-Alternative Energy...........................................................................................................104
Link-Alternative Energy...........................................................................................................105
Link-Alternative Energy...........................................................................................................106
Link-Alternative Energy...........................................................................................................107
Link – Foreign Aid.....................................................................................................................108
Link – Military...........................................................................................................................109
Link – Military...........................................................................................................................110
Link – Military...........................................................................................................................111
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Link education/health/science..................................................................................................112
Link – development....................................................................................................................113
Link – Interior Policies..............................................................................................................114
Link – Terrorism........................................................................................................................115
Link – Farm Bills.......................................................................................................................116
Link – emergency spending.......................................................................................................117
Link – elections cause snowball................................................................................................118
Dollar Key to econ......................................................................................................................119
Fiscal D Key to Econ..................................................................................................................120
Fiscal D Key to Econ..................................................................................................................121
Fiscal D Key to Econ..................................................................................................................122
Fiscal D Key to Econ..................................................................................................................123
Fiscal D Key to check Russia....................................................................................................124
Fiscal D K deficit........................................................................................................................125
Fiscal D K Biz Con.....................................................................................................................126
Fiscal D K Heg............................................................................................................................127
Debt -> Recession.......................................................................................................................128
Debt -> Recession.......................................................................................................................129
Debt -> military aggression.......................................................................................................130
US Deficit -> global econ collapse.............................................................................................131
****Fiscal D Answers................................................................................................................132
2AC (1/2).....................................................................................................................................133
2AC (2/2).....................................................................................................................................134
FISCAL D Low...........................................................................................................................135
FISCAL D Low...........................................................................................................................136
FISCAL D Low...........................................................................................................................137
FISCAL D Low...........................................................................................................................138
NO SPILLOVER – EARMARKS ...........................................................................................139
No increase in money.................................................................................................................140
McCain & Obama Fiscal D low................................................................................................141
Spending -> boost econ..............................................................................................................142
*** Congressional Trade Off.....................................................................................................143
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CongTrade-Off – 1NC F-22.......................................................................................................144
CongTrade-Off – 1NC F-22.......................................................................................................145
CongTrade-Off – 1NC NMD.....................................................................................................146
CongTrade-Off – 1NC NMD.....................................................................................................147
CongTrade-Off – 1NC NMD.....................................................................................................148
Trade off with F22.....................................................................................................................149
Chopping block..........................................................................................................................150
Chopping block..........................................................................................................................151
Chopping block..........................................................................................................................152
Airpower Impact........................................................................................................................153
Airpower Impact........................................................................................................................154
Airpower Impact........................................................................................................................155
Airpower Impact........................................................................................................................155
*** CONGTRADE OFF AFF ANSWERS...............................................................................157
CongTrade-Off – 2AC F-22.......................................................................................................158
CongTrade-Off – 2AC F-22.......................................................................................................159
CongTrade-Off – 2AC F-22.......................................................................................................160
CongTrade-Off – 2AC NMD.....................................................................................................161
CongTrade-Off – 2AC NMD.....................................................................................................162
CongTrade-Off – 2AC NMD.....................................................................................................163
No forced trade-off.....................................................................................................................164
Trade-off with other things.......................................................................................................165
F22 Trade Off inevit...................................................................................................................166
NMD stuff...................................................................................................................................167
Missile Defense Key to Stability................................................................................................168
Missile Defense May Get Cut....................................................................................................169
Mid-East Impact........................................................................................................................170
NMD Good..................................................................................................................................171
NMD Bad....................................................................................................................................172
NMD Bad....................................................................................................................................173
***DOD Trade off......................................................................................................................174
1NC..............................................................................................................................................175
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1NC..............................................................................................................................................176
1NC..............................................................................................................................................177
Budget Tight...............................................................................................................................178
F-22 Chopping Block.................................................................................................................179
F-22 Chopping Block.................................................................................................................180
F-22 Chopping Block.................................................................................................................181
F-22 Impacts...............................................................................................................................182
***DOD Trade off Answers......................................................................................................183
2AC..............................................................................................................................................184
2AC..............................................................................................................................................184
2AC..............................................................................................................................................185
2AC..............................................................................................................................................186
F-22’s suck..................................................................................................................................188
***DOE Trade OFF...................................................................................................................189
DOE TRADE OFF 1NC............................................................................................................190
DOE TRADE OFF 1NC............................................................................................................191
DOE TRADE OFF 1NC............................................................................................................192
DOE TRADE OFF 1NC............................................................................................................193
Nuclear Energy funding key.....................................................................................................194
ITER Brink/Internal Link........................................................................................................195
ITER Brink/Internal Link........................................................................................................196
ITER Brink/Internal Link........................................................................................................197
ITER Brink/Internal Link........................................................................................................197
ITER Brink/Internal Link........................................................................................................199
ITER Brink/Internal Link........................................................................................................200
Link – General............................................................................................................................201
Link – General............................................................................................................................202
Gas/Oil R&D Trade off..............................................................................................................203
Natives specific link....................................................................................................................204
Renewable energy trade-off......................................................................................................205
Renewable energy trade-off......................................................................................................206
Renewable energy trade-off......................................................................................................207
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Scientific Innovation Impact.....................................................................................................208
Every dollar Key........................................................................................................................209
French relations..........................................................................................................................210
French relations..........................................................................................................................211
US-INDIAN Relations...............................................................................................................212
US-INDIAN Relations...............................................................................................................213
US-INDIAN Relations...............................................................................................................214
US-INDIAN Relations...............................................................................................................215
ITER k heg..................................................................................................................................216
......................................................................................................................................................216
ITER Solves All Energy.............................................................................................................217
ITER Solves All Energy.............................................................................................................218
ITER Solves All Energy.............................................................................................................219
ITER SAFE ................................................................................................................................220
FUNDING KEY TO US INVOLVEMENT IN ITER.............................................................221
ITER SAFE/FEASIBLE............................................................................................................222
***DOE Trade off Answers.......................................................................................................223
No trade off.................................................................................................................................224
ITER = nuke power...................................................................................................................225
ITER -> Prolif............................................................................................................................226
ITER -> Prolif............................................................................................................................227
*** EPA DA................................................................................................................................228
*EPA 1NC*.................................................................................................................................229
EPA Budget Tight .....................................................................................................................231
EPA Budget Tight .....................................................................................................................232
EPA Budget Tight .....................................................................................................................233
EPA Budget Tight .....................................................................................................................234
EPA Budget Tight .....................................................................................................................235
U—CO2 CUT NOW..................................................................................................................236
U—CO2 CUT NOW..................................................................................................................237
U—CO2 CUT NOW..................................................................................................................238
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U—AE CUT NOW.....................................................................................................................239
BRINK—WATER BUDGET....................................................................................................240
BRINK—WATER BUDGET....................................................................................................241
Unique internal link: ................................................................................................................242
Water Protection – uniqueness/brink.......................................................................................243
LWCF BRINK ...........................................................................................................................244
"The president's final budget deals a huge blow to the agencies and programs charged with
safeguarding our nation's natural resources," she said. "The next administration will be
burdened with mending the damage caused by President Bush's disastrous policies. "For
example, the Land and Water Conservation Fund, the principal source of funds for
acquisition of lands for parks and wildlife refuges, would be crippled by a budget cut of
nearly $104 million, wiping out more than 67 percent of its funding," Clark warned." . 244
Air Pollution Impacts................................................................................................................245
Trade Off is Normal means.......................................................................................................246
Trade Off is Normal means.......................................................................................................247
Trade Off is Normal means.......................................................................................................248
Link – NASA SPENDING.........................................................................................................249
EPA=NM.....................................................................................................................................250
EPA=NM.....................................................................................................................................251
EPA=NM.....................................................................................................................................252
EPA=NM.....................................................................................................................................253
LINK: ALTERNATIVE ENERGY INCENTIVES................................................................254
LINK: CAP AND TRADE.........................................................................................................255
LINK - GHG REGULATION...................................................................................................256
LINK—NUCLEAR POWER...................................................................................................257
LINK: REBATES.......................................................................................................................258
LINK - RPS ...............................................................................................................................259
LINK: TAX INCENTIVES ......................................................................................................260
TERROR=FIRST TO GO.........................................................................................................261
REGULATIONS KILL TERROR...........................................................................................262
REGULATIONS COSTLY.......................................................................................................263
REGULATIONS COSTLY.......................................................................................................264
FUNDING KEY.........................................................................................................................265
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Clean Water Trade Off..............................................................................................................266
Ent’l Justice Impact...................................................................................................................267
Pollution trade off......................................................................................................................268
Pollution trade off......................................................................................................................269
Toxic Waste.................................................................................................................................270
Air Pollution Impacts................................................................................................................271
Air Pollution Impacts................................................................................................................272
Pollution Enforcement...............................................................................................................273
EPA KEY....................................................................................................................................274
EPA KEY....................................................................................................................................275
EPA KEY....................................................................................................................................276
EPA KEY....................................................................................................................................277
EPA KEY....................................................................................................................................278
TERROR IMPACT CALC.......................................................................................................279
TERROR IMPACT CALC.......................................................................................................280
BIOTERROR!............................................................................................................................281
BIOTERROR!............................................................................................................................281
BIOTERROR!............................................................................................................................283
DISEASE MODULE.................................................................................................................283
DISEASE MODULE.................................................................................................................285
DISEASE MODULE.................................................................................................................286
Water Terrorism.........................................................................................................................287
Water Terrorism.........................................................................................................................288
Water Terrorism.........................................................................................................................289
Water Terrorism.........................................................................................................................290
Water Terrorism.........................................................................................................................291
Water Terrorism.........................................................................................................................292
Water Terrorism.........................................................................................................................293
Water Terrorism.........................................................................................................................294
Water Terrorism.........................................................................................................................295
Water Terrorism.........................................................................................................................296
Water Terrorism.........................................................................................................................297
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Water Terrorism.........................................................................................................................298
.....................................................................................................................................................298
Internal Link – Tradeoffs general ........................................................................................299
SuperFind...................................................................................................................................300
***EPA Aff Answers .................................................................................................................301
2AC Front line - EPA.................................................................................................................302
2AC Front line - EPA.................................................................................................................303
2AC Front line - EPA.................................................................................................................304
BUDGET DEAD NOW.............................................................................................................305
Trade-offs now ..........................................................................................................................306
NO LINK—TAXPAYERS.........................................................................................................307
NO LINK—TAXPAYERS.........................................................................................................308
NO LINK—TAXPAYERS........................................................................................................309
NO LINK—STATES.................................................................................................................310
NO LINK—FAILURES.............................................................................................................311
LINK N/U—CLIMATE CHANGE.........................................................................................312
EPA=FAIL..................................................................................................................................313
NO AUTHORITY......................................................................................................................314
Pollution Answers......................................................................................................................315
Water terrorism answers...........................................................................................................316
No Enforcement turns the case.................................................................................................317
EPA Enforcement Low..............................................................................................................318
Ans to Water Terrorism.............................................................................................................319
AFF, against States CP..............................................................................................................320
***Econ Impacts ......................................................................................................................321
US ECON HIGH........................................................................................................................322
US ECON HIGH........................................................................................................................323
US ECON HIGH........................................................................................................................324
A2_economy resilient.................................................................................................................325
Dollar collapse -> !.....................................................................................................................326
General ......................................................................................................................................327
General ......................................................................................................................................328
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US K World Econ.......................................................................................................................329
Heg ............................................................................................................................................330
Heg ............................................................................................................................................331
Extinction....................................................................................................................................332
Quality of Life ...........................................................................................................................333
Quality of Life ...........................................................................................................................334
Quality of Life ...........................................................................................................................335
Imperialism ................................................................................................................................336
Oil Impact ..................................................................................................................................337
Econ Impacts - Environment....................................................................................................338
Econ Impacts - Environment....................................................................................................338
Econ Impacts - Environment....................................................................................................340
Econ Impacts – Air pollution....................................................................................................341
*** ECON IMPACT ANSWERS .........................................................................................342
General Econ Impact 2AC Frontline.......................................................................................343
General Econ Impact 2AC Frontline.......................................................................................344
General Econ Impact 2AC Frontline.......................................................................................345
General Econ Impact 2AC Frontline.......................................................................................346
General Econ Impact 2AC Frontline.......................................................................................347
Trade Debt ans..........................................................................................................................348
Dollar Collapse inevitable .......................................................................................................349
Aff – low econ solves environment...........................................................................................350
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******Bizcon
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BIZ CON 1NC
WSJ (Wall Street Journal), 7-15-08, “The Multifront War Over Investor Confidence”,
http://online.wsj.com/article/SB121610307854153963.html?mod=googlenews_wsj
That seemed to help, at least temporarily, since investors yesterday bought $3 billion in short-term debt in a Freddie
auction that drew more bids than usual and thus allowed the company to offer lower yields and keep down its
borrowing costs, as The Wall Street Journal notes. This confidence stems from the powerful promise Treasury
Secretary Henry Paulson essentially made to back Fannie and Freddie on Sunday, however much he expressed a
preference for keeping their shareholder-owned structures. As BusinessWeek's Michael Mandel argues, the two
seem to be "on the inevitable road to being bailed out, nationalized, and shrunk," since the placement of "the full
faith and credit of the U.S. government behind two private financial companies" can't be undone. Still, if Mr.
Paulson's weekend moves helped shore up short-term confidence in Fannie and Freddie's ability to keep pumping
money into the housing market, they didn't solve long-term worries about their capitalization, the Journal says. The
rescue of Fannie and Freddie came "after Wall Street executives and foreign central bankers told Washington that
any further erosion of confidence could have a cascading effect around the world," officials tell the New York
Times. And yet, the start-and-stop market cascades tied to the mortgage crisis that began early last year were at it
again today. Yesterday's fall in U.S. banking stocks today is translating into hefty losses in Shanghai, Singapore,
Hong Kong and Japan, and in London, Frankfurt and Paris, too. The dollar reached a new low against the euro,
which was buying more than $1.60, and U.S. stock futures are down ahead of the market open in New York.
In our view, many firms at present fear a quadrant 1 scenario. They do not invest in developing green capabilities
because of the high uncertainty regarding leveraging effects associated with these investments. In many cases it is,
for example, unclear ( a ) how government regulation, both in terms of command and control regulations and
market-based instruments will evolve over time, ( b ) to what extent the impact of ‘green consumerism’ will
increase in terms of affecting purchasing decisions of buyers, ( c ) what the industry standards and benchmarks will
be in the area of environmental protection. This is consist- ent with Jaffe’s analysis, which demonstrated the
benefit of waiting to make irreversible invest- ments in clean technologies until better technol- ogies become
available ( Jaffe et al, 1995 ).
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BIZ CON 1NC
C. Lack of business confidence destroys the economy
John Braithwaite, Australian Research Council Federation fellow, 2004, The Annals of The American Academy of Political
and Social Science, March, “Emancipation and Hope,” Lexis
The challenge of designing institutions that simultaneously engender emanci- pation and hope is addressed within the
assumption of economic institutions that are fundamentally capitalist. This contemporary global context gives more force to the
hope nexus because we know capitalism thrives on hope. When business confidence collapses, capitalist economies head for
recession. This dependence on hope is of quite general import; business leaders must have hope for the future before they will
build new factories; consumers need confidence before they will buy what the factories make; investors need confidence before
they will buy shares in the company that builds the factory; bankers need confidence to lend money to build the factory;
scientists need confidence to innovate with new technologies in the hope that a capitalist will come along and market their
invention. Keynes’s ([1936]1981) General Theory of Employment, Interest and Money lamented the theoretical neglect of
“animal spirits” of hope (“spontaneous optimism rather than . . . mathematical expectation” (p. 161) in the discipline of
economics, a neglect that continues to this day (see also Barbalet 1993).
But what if it can’t? What if the global economy stagnates—or even shrink In that case, we will face a new period of international
conflict: South against North, rich against poor. Russia, China, India—these countries with their billions of people and their nuclear
weapons will pose a much greater danger to world order than Germany and Japan did in the ‘30s.
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Bizcon increasing
Nearly 78 percent of owners and managers of small businesses say their companies are either growing as planned or at a
faster pace than forecast at the beginning of the year, according to results of a Business Confidence Survey released
today by Administaff (NYSE:ASF), a leading provider of human-resources services for small and medium-sized businesses.
Survey respondents also are actively filling open positions with 44 percent saying they are hiring full-time employees
and 11 percent planning to bring in part-timers. Administaff also released compensation data compiled from its client base
of more than 6,000 small and medium-sized businesses throughout the country. A comparison of first-quarter data against the
same period in 2007 shows that average compensation is up 4.9 percent and average commissions have increased 6.8
percent. In addition, overtime pay is running 9.5 percent of regular pay.
Business confidence is rising, as companies are holding a more optimistic outlook for the second half of 2007, according to
the Taiwan Institute for Economic Research (TIER). TIER based these conclusions on the results of its latest survey of the
manufacturing and service sectors. Nearly 50% of the surveyed manufacturers said that they were "optimistic" about
economic performance in the second half of the year. The survey was presented at a meeting hosted by TIER president
David Hong and researcher Chen Miao. As organizations such as the UK's Economist Intelligence Unit (EIU) and the United
Nations have revised their economic growth forecasts upwards, the global economy should remain strong, which means
Taiwan will continue to maintain strong exports, said Chen. Although manufacturers were less positive about business
performance in April in comparison to March, they held an optimistic outlook for the next three to six months -- the
percentage of manufacturers who said they were "positive" about their business outlook rose from 44.3% to 49.2%,
according to Chen.
National City's monthly business confidence survey hit a record low in June, helped along by growing gloom in its
territories affected by recent flooding, the bank said. Only 57.8 percent of respondents expressed confidence in the
economy, down from more than 60 percent in May, National City said in a news release. States affected by flooding had
the largest drops: Missouri's economic outlook results fell to 59 percent from 77.4 percent over the month; Illinois' to 61.7
percent from 71.2 percent; and Indiana's to 66.9 percent from 70.7 percent.
Global business confidence has remained in a tight range since late May, consistent with a global economy that is barely
growing. Developed economies, including the U.S., Europe and Japan, are contracting moderately, while most developing
economies are expanding moderately. This is an improvement since late April, however, when global business confidence fell
to a record low. The most measurable improvement has been among real estate operations, financial services companies, and
business service firms. These firms are still dour, but not nearly so. As has been the case for the past year, the most negative
responses are to the broad questions concerning present conditions and the outlook.
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Bizcon increasing
THE Australian sharemarket gained 3 per cent yesterday, adding $42 billion in value, amid renewed buying.
Bargain hunters snapped up stocks following signs of improved business confidence in the United States.
It was the biggest one-day gain since last Wednesday, after the US Federal Reserve made a large cut to interest rates.
Macquarie Equities adviser David Halliday said sentiment had improved in the United States amid JP Morgan's increased bid for
troubled investment bank Bear Stearns and moves by the US Federal Reserve to keep the financial system orderly.
Lucinda Chan, division director at Macquarie Private Wealth, said: ``What you are seeing is confidence moving into this market.
``It's the first time in months the market's seen some positive signs leading to the upwards and while the bad times are not entirely
over, some risk appetite has returned to the market and people are starting to look for some bargains.''
Small business owner confidence in the U.S. economy deteriorated to its lowest in 28 years, according to a survey
released Tuesday. The National Federation of Independent Business said its index of small business optimism fell 2.2 points in
May to 89.3, the lowest reading since 1980, when the index plunged as a recession hit.
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Investor Con Stable
Investor confidence stable – strong debt sales prove
The Guardian, (Reuters), 7-14-08, “US pledge fails to lift cloud over Fannie, Freddie”,
http://www.guardian.co.uk/business/feedarticle/7651704
The Treasury Department is seeking Congressional approval for a temporary increase in the credit line it provided for Fannie
and Freddie. Its size is to be determined by Paulson, who told the Fed not to lend to Fannie and Freddie until they exhaust their
Treasury credit lines. Debt buyers seemed confident in the mortgage agencies. Monday's $3 billion debt sale from Freddie drew
stronger demand than a similar one on July 7. Fannie announced that it will sell $3 billion worth of debt on Wednesday. While
Monday's debt auction was routine, it was viewed as a key test of market appetite following last week's stock sell-off. Freddie's
treasurer said the sale was "business as usual," and he did not perceive a crisis of investor confidence.
State Street, “INVESTOR CONFIDENCE INDEX RISES FROM 72.3 TO 81.0 IN MAY ”,
http://pr.statestreet.com/us/en/20080520_1.html, May 20th, 2008
Global Investor Confidence rose by 8.7 points to 81.0 from a revised April level of 72.3. North American investors were the key
drivers of this, as their risk appetite increased by 8.0 points from 77.0 to 85.0. In other regions, the confidence levels saw
negligible changes from the previous month, with European investor confidence falling by 0.5 points to 76.3 and Asian investor
confidence rose by 0.2 to 86.4.
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Investor Con – Brink
Investor confidence is on the brink – rescue of financial institutions shored up
confidence, but any erosion cascades globally
WSJ (Wall Street Journal), 7-15-08, “The Multifront War Over Investor Confidence”,
http://online.wsj.com/article/SB121610307854153963.html?mod=googlenews_wsj
That seemed to help, at least temporarily, since investors yesterday bought $3 billion in short-term debt in a Freddie auction
that drew more bids than usual and thus allowed the company to offer lower yields and keep down its borrowing costs, as The
Wall Street Journal notes. This confidence stems from the powerful promise Treasury Secretary Henry Paulson essentially
made to back Fannie and Freddie on Sunday, however much he expressed a preference for keeping their shareholder-owned
structures. As BusinessWeek's Michael Mandel argues, the two seem to be "on the inevitable road to being bailed out,
nationalized, and shrunk," since the placement of "the full faith and credit of the U.S. government behind two private financial
companies" can't be undone. Still, if Mr. Paulson's weekend moves helped shore up short-term confidence in Fannie and
Freddie's ability to keep pumping money into the housing market, they didn't solve long-term worries about their capitalization,
the Journal says. The rescue of Fannie and Freddie came "after Wall Street executives and foreign central bankers told
Washington that any further erosion of confidence could have a cascading effect around the world," officials tell the New York
Times. And yet, the start-and-stop market cascades tied to the mortgage crisis that began early last year were at it again today.
Yesterday's fall in U.S. banking stocks today is translating into hefty losses in Shanghai, Singapore, Hong Kong and Japan, and
in London, Frankfurt and Paris, too. The dollar reached a new low against the euro, which was buying more than $1.60, and
U.S. stock futures are down ahead of the market open in New York.
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Consumer Confidence High
Business World, 5/23/08. “Special Feature: Consumer Loans; Consumer spending on the rise” Lexis
The United States may be experiencing a slump, but local consumer spending is going the opposite direction. With improved
consumer confidence, the low interest rate environment and overseas workers' remittances, consumer spending is definitely going
uphill.
Remittances particularly supported the robust consumer confidence in the country as total dollar remittances totaled $14.4 billion last
year, up 13.2% year-on-year. It was also higher than the forecast $14.3 billion level.
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Investor Confidence - High
Washington Post, 7/17/08. “Stocks Rebound Despite Big Jump In June Inflation; Financial Shares Post Double-Digit Gains,” Lexis
Other prices were also up in June, indicating that high prices for oil and other commodities are working their way through the
economy. Transportation costs were up 3.8 percent last month; rents and the cost of education and other services rose briskly, too.
Overall, core inflation -- which excludes food and energy -- increased 0.3 percent in June, a substantial increase over the previous four
months. But investors, buoyed by the Wells Fargo news, brushed off the inflation report and streamed to buy up stocks that were at
the lowest level in years. The S&P 500 Banks Index rose 23 percent, the biggest jump since September 1989. Share prices of Fannie
Mae and Freddie Mac more than erased steep losses from Tuesday, with Fannie Mae surging 31 percent and Freddie Mac rising 30
percent. Shares of Washington Mutual, the largest U.S. savings and loan, jumped 25 percent, while J.P. Morgan Chase and Bank of
America, the nation's largest commercial banks, climbed 16 and 22 percent, respectively. Wachovia, which holds more deposits from
Washington area residents than any other commercial bank, gained 16 percent. Wells Fargo reported a second-quarter profit of $1.75
billion, or about 53 cents a share. That was 21 percent lower than its profit in the corresponding quarter a year earlier but exceeded the
expectations of most Wall Street analysts, who had predicted a profit of 50 cents a share. Even more encouraging to investors was the
company's announcement that it would raise its dividend 10 percent, a move that reaffirmed a positive long-term outlook.
US investors are becoming optimistic after a drop in oil prices and higher-than-expected bank profits
The International Herald Tribune, 7/17/08. “Stocks rise in U.S. and Europe as oil declines;
MARKET ROUNDUP,” Lexis
U.S. and European stocks rose Wednesday after oil prices fell sharply on news of an unexpected leap in U.S. crude supplies last week
and after a big American bank posted surprisingly strong results. All told, the events helped to ease investor fears about the battered
financial sector. Spot gold prices tumbled about 2 percent as crude oil slid and the dollar extended gains after the Federal Reserve
chairman, Ben Bernanke, Ben Bernanke said that under certain conditions currency intervention might be warranted. Shares in the
beaten-down financial sector surged. The S&P financial index rose 6.3 percent, while the KBW banks index gained 9.4 percent. Not
all the news was positive. Data showed U.S. consumer price inflation accelerated to an annual rate of 5 percent in June - well above
economists' forecasts - and U.S. government debt prices fell sharply. U.S. crude oil futures fell more than 4 percent after a U.S.
government agency reported a surprise increase in import levels, causing crude prices to chalk up the biggest two-day loss in
percentage terms since January 2007. While the two-day drop in the price of oil of almost $15 only brought crude to a three-week
low, the fall was enough to help Wall Street indexes rally about 2 percent in late trading. Equity markets had slipped entirely into bear-
market territory earlier in the week. An index of top European shares also closed higher, a day after hitting a three-year closing low.
Stronger-than-expected quarterly results by Wells Fargo, one of the biggest U.S. banks, helped turn a sour mood on Wall Street that
has seen banking shares slide to decade lows as the sector looks for still more capital after record infusions.
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Investor Con High – Mortgage Lenders
Fed action on Fannie Mae boosted investor con
Maurna Desmond, Forbes writer, 7-14-08, “Investors Still Shy Of Fannie & Freddie”,
http://www.forbes.com/home/2008/07/14/fannie-freddie-gse-markets-econ-cx_md_0714markets11.html
Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) surged Monday morning, but
then cooled after news that the Federal Government announced a three-pronged plan on Sunday to ensure that the two
government-backed lenders, which own or guarantee roughly $5.3 trillion or half of all outstanding U.S. mortgage debt, are
able to continue operating. The government's action turns an implicit government guarantor into an explicit one, and boosted
investor confidence, at least initially. Freddie was down 1.4%, or 11 cents, to $7.64 and Fannie added 2.8%, or 29 cents, to
$10.54 by noon in New York.
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Link – Investor Con
Benedict Brogan, political editor Daily Mail, 3-10-08, “Darling attacked over energy subsidies”,
http://www.thisismoney.co.uk/news/article.html?in_article_id=432592&in_page_id=2
Darling's latest plan to hit the hugely profitable energy suppliers were rubbished by industry executives. They warned that the
proposals will threaten the ability of companies to invest billions of pounds in new nuclear power stations and windfarms. Sam
Laidlaw, chief executive of the British Gas group Centrica, told the Adam Smith Institute today: 'There is a worrying tendency
towards short-term fiscal interventions or now, from some quarters, even price controls for some groups of customers. 'Such
intervention is contrary to the operation of competitive markets, threatens to destabilise investor confidence and risks jeopardising
construction of the critical power-generation and gas-supply infrastructure we need.'
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Link – Regulations
Regulation causes businesses to fear litigation, shattering confidence
Glenn Hubbard, Dean of the Columbia School of Business, “REDUCING REGULATION AND LITIGATION
WHILE ENHANCING SHAREHOLDER RIGHTS WILL IMPROVE THE COMPETITIVENESS OF U.S.
CAPITAL MARKETS”, http://www.capmktsreg.org/pdfs/Summary_11.30interimreport.pdf, 2008
The evidence suggests that balance does need to be restored. A substantial portion of the erosion in U.S. markets global and
internal competitiveness – and the only factors over which U.S. policymakers have control – relates to insufficiently
coordinated, costly and/or excessive market regulation and enforcement, public and private. Regulatory requirements for
complying with Section 404 of the Sarbanes-Oxley Act cost companies, on average, $4.36 million in the first year – a stiff price
for most public companies and a significant burden for small ones, particularly first time market entrants. Nearly open-ended
responsibility of auditors in complying with Section 404 has made an already consolidation-shriveled profession virtually
uninsurable for this work. Insufficiently coordinated state and federal enforcement laws and activities have led to state
authorities driving matters that are more national in scope. Improper criminalization of entire companies has sometimes
forced them out of business, eliminating thousands of innocent employees’ jobs. Private enforcement in the form of
securities law class action suits (which do not exist outside the U.S.) resulted in $150 million of liabilities in 1995. By 2004,
this had exploded to $3.5 billion – a figure that does not even include an additional $4.74 billion of penalties assessed by US
public enforcement bodies.
Gary Banks, Chairman Productivity Commission, ‘03 “Reducing the business costs of regulation”,
http://www.pc.gov.au/__data/assets/pdf_file/0017/7802/cs20030320.pdf
It is an established fact that the burden of regulation falls more heavily on small businesses; not because they are more heavily
regulated, but because they have the least capacity to cope. Operators or managers of smaller businesses are less likely to have
specialist staff with detailed knowledge of regulations or taxation matters. Regulations are more likely to be dealt with by
prime decision-makers, distracting them from their core role. The costs of such managerial diversion are very difficult to
assess, but are potentially large. The Small Business Deregulation Taskforce found that, among other things: • small businesses
often do not understand their compliance obligations; • unnecessary delays in processing and approvals, and duplication of
information requirements, were resulting in lost time; and • inconsistency in administrative interpretation can result in
uncertainty about processes and outcomes, which impact adversely on business confidence.
Strict regulations and taxes deter investment and decrease growth and jobs – Canada proves
The Fraser Institute, Canadian Economic Journal, 10/20/99. “Mining Policy: the Good, the Bad and the Ugly,”
http://oldfraser.lexi.net/publications/forum/1998/december/mining_policy.html
Most regions in Canada are blessed with a geology that is attractive for mining. Unfortunately, some of those same regions are
burdened with cumbersome, restrictive policies that reduce their overall investment attractiveness. If Canada wants to maintain a
healthy mining industry, it cannot afford to be complacent about its policy climate because countries around the world are now
competing to attract mining dollars to their jurisdictions. Anti-business policy climates deter investment, reduce economic growth, and
cost jobs. As some Canadian jurisdictions have determined, the formula for encouraging investment and prosperity is not complicated.
It does not require complex plans to create jobs and manage the economy. Rather, it requires eliminating onerous regulations,
simplifying permit processes so they are timely and efficient, lowering taxes, and eliminating uncertainty about expropriation without
compensation.
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Link – Regulations
Chief Executive. 7/10/08. “CEOs Portray a Dismal Forecast for the U.S.,” PR Newswire, Lexis.
http://www.lexisnexis.com/us/lnacademic/results/docview/docview.do?docLinkInd=true&risb=21_T4174871779&format=GNBFI&so
rt=BOOLEAN&startDocNo=1&resultsUrlKey=29_T4174871782&cisb=22_T4174871781&treeMax=true&treeWidth=0&csi=8054&
docNo=14
MONTVALE, N.J., July 10 /PRNewswire/ -- With the economy overtaking Iraq as one of the main issues this election year, Chief
Executive magazine conducted a survey among CEOs between June 13 and June 27 in an effort to gauge CEO sentiment on the
direction of the U.S. economy. CEOs were asked which policy position they think the U.S. should take to increase or maintain
American competitiveness as well as questions on which countries will generate the highest number of jobs and where the top paying
jobs will be in the future.
An overwhelming majority of American CEOs believe that in order to create the highest paying jobs and maintain the U.S.' economic
competitiveness, the government needs to reduce taxes and regulation, privatize education and remove restrictions on trade.
The evidence suggests that balance does need to be restored. A substantial portion of the erosion in U.S. markets global and
internal competitiveness – and the only factors over which U.S. policymakers have control – relates to insufficiently
coordinated, costly and/or excessive market regulation and enforcement, public and private. Regulatory requirements for
complying with Section 404 of the Sarbanes-Oxley Act cost companies, on average, $4.36 million in the first year – a stiff price
for most public companies and a significant burden for small ones, particularly first time market entrants. Nearly open-ended
responsibility of auditors in complying with Section 404 has made an already consolidation-shriveled profession virtually
uninsurable for this work. Insufficiently coordinated state and federal enforcement laws and activities have led to state
authorities driving matters that are more national in scope. Improper criminalization of entire companies has sometimes
forced them out of business, eliminating thousands of innocent employees’ jobs. Private enforcement in the form of
securities law class action suits (which do not exist outside the U.S.) resulted in $150 million of liabilities in 1995. By 2004,
this had exploded to $3.5 billion – a figure that does not even include an additional $4.74 billion of penalties assessed by US
public enforcement bodies.
Wayne Gray, Dept of Economics, Clark Univ, 1993, “ENVIRONMENTAL REGULATION AND MANUFACTURING
PRODUCTIVITY AT THE PLANT LEVEL” National Bureau of Economic Research, Working Paper Series, No. 4321, p.4.
Regulation may also increase the uncertainty faced by firms, affecting their decisions in a variety of ways. Viscusi (1983) discusses
the role of uncertainty about future regulations (and hence about the future profitability of the firm) in reducing a firm's investment, or
at least in postponing the investment until the uncertainty is resolved. Hoerger, Beamer, and Hanson (1983) point out that new
product development could be affected by uncertainty about future regulation of new products. Development of new production
processes could also be hindered by uncertainty about future regulations, as current regulatory requirements are generally designed
with existing production processes in mind.
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Link – Regulations
Michael Greenstone, Dept Economics – MIT, 2002 [“The Impacts of Environmental Regulations on Industrial Activity: Evidence
from the 1970 and 1977 Clean Air Act Amendments and the Census of Manufactures,” Journal of Political Economy, vol. 110, no. 6]
http://www.journals.uchicago.edu/doi/abs/10.1086/342808
This paper provides new evidence that environmental regulations re- strict industrial activity. I find that in the first 15 years after the
CAAAs became law (1972–87), nonattainment counties (relative to attainment ones) lost approximately 590,000 jobs, $37 billion in
capital stock, and $75 billion (1987 dollars) of output in polluting industries. Although these estimates are not derived from a
randomized experiment and therefore cannot meet a strict definition of causality, they provide robust evidence that these regulations
deter the growth of polluters. In the first place, the findings are derived from the most comprehensive data available on clean air
regulations and manufacturing activity. Second, the preferred statistical model for plant-level growth controls for all permanent plant
characteristics, unrestricted industry shocks, and un- restricted county shocks. Third, the effects are robust across a variety of
specifications. Finally, the regulation effects are evident across three different measures of manufacturing activity and a wide range of
pol- luting industries. The federal standards for ozone and particulates were tightened re- cently, causing a substantial increase in the
number of nonattainment counties.39 The balance of evidence from this paper suggests that the new nonattainment counties will
experience reductions in employment, investment, and shipments in polluting industries. To gain a clearer understanding of whether
it is worthwhile to incur the costs associated with these reductions, it is crucial to understand the regulations’ effec- tiveness at
cleaning the air and the benefits of cleaner air. Recent re- search finds that these policies are effective at reducing concentrations of
air pollution and that cleaner air, particularly reductions in TSPs, provides substantial monetary benefits to homeowners and reduced
in- fant mortality rates (Smith and Huang 1995; Henderson 1996; Chay and Greenstone 2000, 2002a, 2002b). Regardless of whether
these pol- icies pass or fail a cost-benefit test, this paper’s findings undermine the contention that environmental regulations are
costless or even benefi- cial for the regulated.
Government regulation causes investors to wait to invest – uncertain about the future of the laws and the company
Alain Verbeke, Director of MBA Studies - Solvay Business School, University of Brussels, 4 Dec 1998. [“Corporate strategies and
environmental regulations: an organizing framework,” Strategic Management Journal, Volume 19 Issue 4, Pages 363 – 375]
In our view, many firms at present fear a quadrant 1 scenario. They do not invest in developing green capabilities because of the high
uncertainty regarding leveraging effects associated with these investments. In many cases it is, for example, unclear ( a ) how
government regulation, both in terms of command and control regulations and market-based instruments will evolve over time, ( b )
to what extent the impact of ‘green consumerism’ will increase in terms of affecting purchasing decisions of buyers, ( c ) what the
industry standards and benchmarks will be in the area of environmental protection. This is consist- ent with Jaffe’s analysis, which
demonstrated the benefit of waiting to make irreversible invest- ments in clean technologies until better technol- ogies become
available ( Jaffe et al, 1995 ).
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Link – Regulations
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Link – Regulations
Legal brawls magnify costs of government mandates
Pietro Nivola, senior fellow in the Brookings Governmental Studies Program, Winter 1996, Brookings Review, p.20 (BLUEOC1603)
For Sheer contentiousness, however, the process of social regulation in the United States seems hard to top. It is not unusual for
decisions, buffeted by legal contestation, to remain in limbo for years. Regulated interests spend lavishly on lawyers and lobbyists.
Their machinations are met by the counter-suits and counter-lobbying of organized advocacy groups, frequently armed with statutory
private rights of action that few, if any, other governments would countenance. Caught in the middle of the legal brawls, not a few
dazed entrepreneurs wait indefinitely for the next shoe to drop before making desirable investments.
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Link – Finesregulations
Paul Lanoie, Development Director, HEC Montreal. 1/1/94. “The market response to environmental incidents in Canada: a theoretical
and empirical analysis.” Southern Economic Journal. Vol. 60, No. 3
Table III indicates that suit settlements with fines imposed on firms result in stockholders experiencing abnormal losses on day 0. Not
unexpectedly, this is true only for the two last subsamples of cases (cases with the same media exposure and Canadian cases with the
same media exposure) where abnormal losses of respectively 1.65% and 2% of market value are observed. This result is maintained
when we consider only the four firms for which we have both the announcement of the lawsuit and the suit settlement: they suffer
significant abnormal losses of 2.7% on the day of the announcement of the suit settlement and no loss when the lawsuit is
announced.(15) These results suggest that the size of fines, or the fact that there is a fine in itself, is an unexpected surprise for
shareholders. This is plausible in a legal context in which, as described above, fines TABULAR DATA OMITTED are the exception
rather than the rule. Interestingly, these results contrast with those of MRG who find abnormal losses on day 0 for lawsuits, but not for
suit settlements. This suggests that American environmental authorities have been more successful than their Canadian counterpart in
designing enforcement mechanisms in which a lawsuit can impose a credible threat on investors |17; 18~.
Investors are worried by the threat of penalties on polluters and their affect on future profits
Denis Cormier, Professor - Ecole des sciences de la gestion, and Michel Magnan, Lawrence Bloomberg Chair in Accountancy, John
Molson School of Business, Concordia University, 1997. [“Investors' assessment of implicit environmental liabilities: An empirical
investigation,” Journal of Accounting and Public Policy, 16, 215-241
In recent years, individual and institutional investors have become increas- ingly concerned about corporate pollution. Their concerns
result from enhanced social awareness and a realization that a firm's environmental performance is likely to result in costly sanctions
or penalties which will affect its future financial performance. In such a context, traditional financial statements may not adequately
capture the financial conse- quences of a firm's environmental management. In addition, the level of disclosure in financial
statements may not be sufficient for stockholders and other stakeholders to reasonably assess a firm's environmental risk (Rubinstein
1989, pp. 30-34).
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Links- Mandates
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Studies on the Kyoto Protocol show that ANY method of reducing emissions would indiscriminately
annihilate key sectors of the economy
Raymond Keating, Chief Economist of the Small Business Survival Committee, June 4, 1998,
http://republicans.smbiz.house.gov/hearings/105th/1998/980604/keating.asp
On behalf of the Small Business Survival Committee (SBSC) and its more than 40,000 members across the nation, I appreciate the opportunity to offer the
following comments regarding the potential impact of the Kyoto Protocol, or "Global Warming Treaty," agreed to this past December by the Clinton Administration
in Kyoto, Japan. SBSC is an advocacy and information organization that supports policies which promote the survival and growth of the entrepreneurial sector of
our economy. As I will more fully explain in a moment, SBSC opposes the Global Warming Treaty for several reasons, but primarily due to the crushing
costs that would be imposed on businesses of all sizes and in practically all industries, as well as on consumers and the economy in general. As most
studies of the Global Warming Treaty indicate -- whether performed by private industry or by the Clinton Administration itself -- this treaty will be an
indiscriminate killer of businesses and jobs. And this will be the case no matter what the means utilized to reduce so-called "greenhouse gas emissions" --
primarily CO2 -- that is, whether through higher taxes, increased regulations, an emissions "cap and trade" system, or some combination of these options.
Like other Americans, we also have other concerns about this treaty, such as national security implications, the fact that it is based on, to be generous, debatable
science, the exclusion of "developing" nations, the foreign aid and transfer of wealth implications among nations, as well as the often secretive and at times
misleading methods used by the Clinton Administration in seeking to advance its global climate policies.
CO2 is the fuel of the global economy – reductions in emissions would devastate the economy
Lewis,
Senior Fellow at the Competitive Enterprise Institute, and Bourne et. al, Director of the Energy and Environment Task Force, 2004
(Marlo and Sandy, http://www.cei.org/gencon/025,03801.cfm, Jan 9)
A study in the November 1, 2002 issue of Science magazine examined possible technology options that might be used in coming decades to stabilize atmospheric
CO2 concentrations.13 Such options include wind and solar energy, nuclear fission and fusion, biomass fuels, efficiency improvements, carbon sequestration, and
hydrogen fuel cells. The report found that, "All these approaches currently have severe deficiencies that limit their ability to stabilize global climate." It specifically
disagreed with the Intergovernmental Panel on Climate Change's assessment that, "known technological options could achieve a broad range of atmospheric CO2
stabilization levels, such as 550 ppm, 450 ppm or below over the next 100 years." As the study noted, world energy demand could triple by 2050. Yet, "Energy
sources that can produce 100 to 300 percent of present world power consumption without greenhouse emissions do not exist operationally or as pilot plants."
The bottom line: "CO2 is a combustion product vital to how civilization is powered; it cannot be regulated away." Given current and foreseeable technological
capabilities, any serious attempt to stabilize CO2 levels via regulation would be economically devastating and, thus, politically unsustainable.
Any meaningful reduction in carbon emissions would cause a protracted U.S. economic depression
Raymond Keating, Chief Economist of the Small Business Survival Committee, June 4, 1998,
http://republicans.smbiz.house.gov/hearings/105th/1998/980604/keating.asp
The author shows that altering the carbon/energy ratio or the development of new technologies will not come close to being enough to reduce carbon emissions.
Indeed, continued economic growth and capital stock renewal will ensure that carbon levels continue rising. The author notes only two avenues that will allow
the U.S. to meet its Kyoto Protocol goals: "A decline in GDP of about 4 percent per year would reduce the demand for energy and thereby carbon emissions
sufficient to achieve the Kyoto target. Alternatively, an increase in the price of energy of about 12 percent per year for a ten year period also would achieve the
Kyoto target. " He concludes: "Either of these changes would impose unacceptable costs on the American economy." To say the least. According to these
estimates, in effect, an extended U.S. economic depression would be necessary in order to meet Kyoto Protocol goals. * A DRI-McGraw Hill study by Dr.
Lawrence Horowitz found the following: * a $100 per ton carbon tax could lower emission levels close to 1990 levels by 2010 and would cost the economy
$203 billion annually in lost output; * $200 per ton carbon tax would be required to reduce emissions below 1990 levels, and would cost the economy $350
billion in lost products and services; * annual job losses from 1995 to 2010 under a $100 per ton carbon tax would hit 520,000, and would leap to 1.1
million annually under a $200 per ton carbon tax; * gasoline prices could jump by as much as 60 cents per gallon, and electricity costs could increase by 50
percent, and home heating oil by 50-100 percent. * Resources Data International Inc. (RDI) was retained last year by Peabody Holding Company Inc., reportedly
the world's largest private coal producer, to study the economic impact of a new global warming treaty. RDI estimated that a $100 per ton carbon tax imposed
in order to reduce CO2 emissions to 1990 levels would: * limit the annual growth rate in the supply of electricity between 1995 and 2015 to0.83% from a
projected 1.45%; * place up to $1.314 trillion, or 14% of GDP, at risk in 2010 and up to $16.823 trillion cumulatively from 2005 to 2015. RDI estimates
that any kind of CO2 trading program would mimic the effects of a carbon tax, with the federal government collecting at least $133 billion annually.
The U.S. economy is dependent on fossil fuels – taking away carbon is like taking a guitar away from
Hendrix
Sebastian Oberthur, Senior fellow at Ecologic, and Hermann Ott, head of the climate policy division at the Wuppertal Institute, 1999
(The Kyoto Protocol: International Climate Change Policy for the 21st Century, p. 19)
Outweighing these positive forces is the country's pattern of economic and societal development, which has relied heavily on the
availability of low-price energy, making the US one of the most energy intensive economies in the OECD. As Steve Rayner put it, "the
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history of US energy demand and the existing resources infrastructure and institutions make the US economy as dependent upon fossil
fuel as a heroin addict is on the needle".25 Because of the very high energy intensity associated with American technology and
lifestyles, low-costs means of saving energy and reducing GHG emissions are in fact abundant.21 Nevertheless, the perception
(furthered by some for obvious political reasons) that reducing C02 emissions would be exorbitantly costly has been comparatively
widespread in the US.
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Link – Kills Investment
Taxes and regulations tank business confidence, decreasing investment
ICAEW (Institute of Chartered Accountants in England & Wales), 5-9-08, “Business confidence still fragile says ICAEW/Orange
UK survey”, http://www.icaew.com/index.cfm?route=135719
The latest ICAEW- Orange UK Business Confidence Monitor shows that while forecasts for GDP and profit growth have increased
this quarter, almost half of the finance professionals surveyed are worried about the growing burdens of tax and regulation, leading
them to invest less in the economy and so endanger long term prospects for economic growth. Despite rising profit forecasts for the
fourth quarter in a row (6.3 per cent), firms in the UK predict that they will increase their capital investment budgets at a lower rate
than they did over the past year, from 3.0 per cent last year, down to 2.2 per cent over the coming 12 months. This suggests that
businesses are not as confident about investing capital in the UK. Eric Anstee, Chief Executive of the ICAEW, said: “While the BCM
shows the economy is moving in the right direction, the longer term economic outlook looks fragile. A lack of business investment
could play an important role in weakening economic growth further down the road, especially if world economic imbalances start to
unravel. I would urge the Government to revisit its taxation and regulatory regimes to renew confidence among businesses of all sizes
which, despite higher profit growth expectations and rising confidence, remain nervous of further investment.”
Susan Lee writing for Consumers’ Research Magazine, Aug. 1996, “How Government Menaces Our Economic Health”, vol. 79
no. 8, pp. 16-17
Who Pays for All This? In general, the cost of regulating is initially expressed as a cost of doing business. Okay, but who pays this
tariff? We all do, in one way or another. Consider a standard situation in which a law requires certain practices to be followed in
hiring or procedures to be used to assure product quality. The former will raise costs by forcing employers to expand their job
search and fill out forms to prove comp1ianc the latter will raise costs by requiring changes in the production process. Sometimes,
firms can pass these costs to consumers, making them pay more; sometimes, firms can’t pass them along at all, so they will have
lower profits, which means that owners or shareholders foot the bill. But, often, employers pass these costs down the line with
lower wages and salaries. Other times, when costs cannot be directly passed off to employees, employers will respond by either
hiring fewer people or laying off those already employed. Either way, higher business costs from regulation will result in lower
wages and/or higher unemployment.
Excessive regulation also discourages investment in domestic business: Why plop a factory down on regulated soil when
unregulated opportunities beckon abroad? Moreover, the threat of regulatory changes creates uncertainty, which scares investors,
who then demand higher returns, and tends to make planning horizons more short term.
Further, regulation stymies innovation. This has been especially true in the drug ind medical- device industry. Long approval
periods shorten the effective patent time for the results of expensive research and development and thus diminish returns on
discoveries without lowering risk. A larger gap between risk and return renders many research and development projects too
unprofitable to undertake. And last, all of the above make it harder for domestic firms to compete in international markets in which
many foreign-based firms do not have to contend with the effects of excessive regulation.
Tobias Madden, Regional Economist FedGazette, Fed Reserve Bank of Minneapolis, Jan. ‘08 “Mixed bag for 2008”,
http://www.minneapolisfed.org/pubs/fedgaz/08-01/poll.cfm
The biggest challenges facing businesses are securing workers and complying with government regulation. “We have been in such
an incredibly tight labor market,” a Montana manufacturer said. Over half of all respondents expect a challenging time finding
workers. Leaders from the agricultural and retail sectors have the hardest time securing workers. About three-quarters of the
Dakota respondents expect finding workers as a challenge or a serious challenge, compared with only 23 percent of the
respondents from the U.P. About half of all respondents see government regulation as a challenge. The respondents from the
finance, insurance and real estate sector expect the toughest government regulation. “Regulation by state and national government
will hamper investment and growth seriously,” said a financial services respondent from the U.P.
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Link – Kills Investment
Regulation hurts growth – limits innovation and diverts attention from key
areas
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Regulations Kill Biz Con
Businesses fear environmental policy – regulations raise the price of their products
Patrick Bernhagen, Department of Politics and International Relations - University of Aberdeen, 8/15/05. “Business Political Power:
Economic Voting, Information Asymmetry, and Environmental Policy in 19 OECD Countries,”
http://convention2.allacademic.com/getfile.php?file=apsa05_proceeding/2005-10-06/40383/apsa05_proceeding_40383.pdf
For the purpose of empirically assessing the sources of business political influence, I focus on the area of environmental regulation.
Aiming to reduce negative externalities flowing from the actions of citizens and businesses, environmental regulation virtually always
has cost implications for business (Golub 1998, 1). At the macroeconomic level, environmental policy is blamed for reducing
industrial productivity (Christiansen and Haveman 1981). Increasing sensitivity to global economic compe- tition and budgetary
constraints makes governments wary of any form of regulation which might threaten economic growth, foreign investment, export
markets, and em- ployment creation. Regulations requiring firms to reduce emissions, increase recy- cling, pay more for energy, or
switch to more expensive fuels and input materials all raise the final price of their products, with the result that “green” states lose
markets to “dirty” states that lack similar environmental standards (Golub 1998, 4). This ar- gument is frequently hammered home by
business. Criticizing the British govern- ment’s target of a twenty-percent reduction of greenhouse gas emissions by 2010, for
example, the director-general of the Confederation of British Industry (CBI), Digby Jones, recently complained, “if our action is not
matched by similar efforts from the rest of the world, we will undermine the competitiveness of British companies for no real
environmental gain.” 2 Indeed, the CBI accepts that, to some degree, it has op- posed every one of approximately 250 EU
environmental directives passed. over the past twenty years. 3 To the extent that governments share this perception of the
environment-competitiveness nexus, they are induced to engage in a ‘race to the bot- tom’ or ‘ecological dumping’ (Golub 1998, 4).
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Link - Litigation
Hawkish lawyers make government regulation a unique arena for increased
litigation
Lisa Rickard, Prez U.S. Chamber of Commerce Institute for Legal Reform, 2007, “Trial lawyers storm capitol”,
http://thehill.com/letters/clean-reliable-cost-effective-nuclear-power-none-of-these-2007-10-05.html
America needs more lawsuits. That’s the message hundreds of plaintiffs’ trial lawyers from across the country have taken to
Capitol Hill this week in lobbying Congress to make it easier to bring more lawsuits. It isn’t surprising. The plaintiffs’ bar has
been chomping at the bit since last November’s elections. “We are going to get things done,” declared the treasurer of the
Association of Trial Lawyers of America at the time. (They’ve since changed their name to the “American Association for
Justice.”) One thing that you can say for the plaintiffs’ trial lawyers association: They haven’t disappointed their members.
They’ve been working hard. No bill has been too big or too small not to slip in a liability-expanding provision. Passing the farm
bill? Invalidate arbitration agreements in meat-packer and producer contracts, so that more business disputes become lawsuits. Or,
better yet, why don’t we outlaw arbitration in all contracts so that the only realistic way to resolve disputes is with a lawsuit?
Reauthorizing Food and Drug Administration funding? Perfect opportunity to take away the federal government’s uniform
consumer protection powers and allow for 50 different sets of food and drug laws — and while they’re at it, open the door to
thousands of state lawsuits for years to come. Or how about a bill funding the war on terror? Why don’t we allow each state to
enact its own set of security laws and regulations? The more sets of confusing government regulations, the more the likelihood
of lawsuits. At every turn, the plaintiffs’ trial lawyers are looking to cash in on Capitol Hill. They’ve bragged to their membership
that their political donations helped to elect this Congress. Now they want a return favor, asking for plaintiffs’ trial lawyer
earmarks that give them the ability to bring more lawsuits.
Robert A. Kagan, senior associate at the Carnegie Endowment for International Peace, and Lee Axelrad, senior research
associate with the UC Berkeley Center for the Study of Law & Society ’97, “Adversarial Legalism: International Perspective” in
“Comparative Disadvantages? Social Regulations and the Global Economy” Ed. Pietro S. Nivola. Published by Brookings Institute
Press, pp. 163
It seems reasonably clear that U.S. adversarial legalism generates higher costs than do some alternative modes of governance.
Yet there is little evidence in the policy areas covered by our research that the higher expenditures imposed by the system yield
better environmental protection, more safety, and so on than the results that prevail in other sophisticated democracies In other
words, our comparative interviews with corporate officials suggest that a significant share of the costs of U.S. adversarial
legalism is not fully offset by its benefits. We proceed by identifying several categories of such costs, then by reviewing the
comparative literature on the subject and reporting conclusions from our interviews with multinational enterprises. At the end
we return to the question of whether adversarial legalism confers adequate compensatory benefits.
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Link - Litigation
David Cid, President of Salus International, '3. Interviewed by Wanja Eric Naef http://www.iwar.org.uk/infocon /espionage-cid.htm
The first line of defence is really protection. Once you have to go to the United States Attorney's Office and say someone stole this
information from us the damage has already been done. So the EEA provides a disincentive for someone to do that, but it really does
not help the company per se. The criminal courts are the kinds of places where you are not made whole, you simply punish the person
who did something bad. On the civil side there is the possibility of recovering damages and you may recoup monetarily, but again the
process of litigation takes forever, it is embarrassing to the company and it can cause loss of faith of stockholders and other investors.
So, there is really nothing good about having a serious information compromise. The EEA is an important facet of our society's
response to this sort of thing, but it is really not a solution and it is really not the best option available to a company. Once you need to
go to criminal trial you have already been seriously damaged.
Paul Lanoie, Development Director, HEC Montreal. 1/1/94. “The market response to environmental incidents in Canada: a theoretical
and empirical analysis.” Southern Economic Journal. Vol. 60, No. 3
There is a growing concern that regulations that promote safety (e.g., automobile safety and product safety) may have little impact on
the level of risk associated with the utilization of such products |21; 29~. A similar concern has been recently raised with respect to
regulations that promote safety in the workplace |12~. A reason often advocated to explain this phenomenon is the lack of adequate
enforcement mechanisms. In particular, it is often argued that fines imposed on agents not complying with these regulations are not
severe enough to have a deterrence effect |30~. With respect to the enforcement of the Ontario Environmental Protection Act (R.S.O.
1980, c. 141), Saxe writes that "the majority of fines were too low to act as effective deterrents" |23, 104~. However, some authors
have challenged this view in showing that the market provides additional monetary incentives for firms to comply with the regulations
by punishing non-complying firms through lower stock market prices. For example, some analyses have shown that public
announcements of lawsuits against American firms not complying with workplace safety |8~, product safety |31~ and environmental
regulations |19~ have caused significant drops of the equity value of these firms. In this last study, it was found that the announcement
of lawsuits against firms violating the American Resource Conservation and Recovery Act (RCRA 1976) had a significant negative
impact on their equity value on the day of the announcement, while announcements of suit settlements (e.g., fines) had no effect. In
most studies, authors argue that the reductions in stock prices have some deterrence effect on firms.
Anthony Q. Fletcher, A.B. Columbia U, ‘95 “Curing Crib Death: Emerging Growth Companies, Nuisance Suits, And
Congressional Proposals for Securities Litigation Reform”, Harvard Journal on Legislation
32 Harv. J. on Legis.
Third, litigation raises the potential of irreparable harm to a company’s reputation. In fact, consumer attitudes may be so adversely
affected upon the initiation of a class action shareholder suit that some consumers may begin to view a particular product and its
entire industry negatively.47 Since most consumer purchases involve potential repeat customers, a class action suit may
significantly stifle future revenues.48 Litigation has the potential to damage a company’s reputation, and consequently may deter
both consumer and investor interest.
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Link - Litigation
Pollution management causes huge shareholder losses – companies held accountable for all cleanup costs and become more
susceptible to future lawsuits
Michael Muoghalu, Director of MBA Program, Pittsburgh State University. 10/90. “Hazardous Waste Lawsuits, Stockholder Returns,
and Deterrence,” Southern Economic Journal, Vol. 57 Issue 2, p357
Table II presents the return information for the Pollution Management, Others, and Petrochemical industry subsamples. Pollution
Management firms suffer the largest shareholder losses, 6.249 percent (z = -6.716). The large losses are not surprising for a number of
reasons. First, under the Superfund Act, Pollution Management firms can be held liable for all cleanup costs at dump sites they
control, even if they generate none of the waste products. Second, a lawsuit at one location may increase the probability of additional
lawsuits by increasing regulatory and public awareness of the firm’s practices. Third, the increased awareness of the firm’s practices
may cause client firms, fearing a joint liability, to seek other disposal options. Another possible factor in explaining the abnormal
returns is the small size (in terms of assets, market values, and cash flows) of Pollution Management firms relative to other firms in
the study.
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Link – Permits
Carbon rationing hurts consumers – will be excluded from permit feeding frenzy
Brian Mannix, associate administrator of the Environmental Protection Agency’s Office of Policy, Economics, and Innovation,
10/9/03. “A Mountain of Money,” http://www.alec.org/am/pdf/energy/mountain-of-money.pdf
Once rationing is imposed and the price of energy goes up, there will be many more claimants getting in line. Can the government
refuse to give C-rations to schools? To hospitals? To the armed forces? To local police departments? To mass transit? To
manufacturers facing foreign competition? The average consumer will have no place in this contest, except as a victim. The politics
of carbon rationing cannot be understood by looking just at theories of climate change or at the serious economic losses that rationing
would cause. Rationing will extract tens to hundreds of billions of dollars of revenue per yearfrom consumers, and the fate of that
revenue is what will drive political decisions. Advocates of rationing argue that we should start a program with modest goals. But
once a feeding frenzy for C-rations begins, modesty, and restraint will be very scarce indeed.
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Links: Cap and Trade
Binding emission caps will cripple a critical sector of US economy and exports and causing massive job
outsourcing
Stone chairman, president and CEO of Stone Container Co. ’98 – Roger “A Call for Common Sense” Global Climate Change, A senior Level
Debate at the Intersection of Economics, Strategy, Technology, Science, Politics, and International Negotiation p. 141
As we all know, the first UN Framework Convention on Climate Change issued a call on the developed nations to voluntarily reduce greenhouse gases to
1990 levels by the year 2000. As I understand it, the current U.S. position now calls for mandated emissions reduction targets and timetables; we heard that today.
This would be accomplished primarily, I think, by setting a cap on energy consumption and may also lead to new taxes on both energy and carbon emissions
as well as impose excessive energy efficiency standards and perhaps severely re strict the way we manage our nation’s working forests. Massive changes
such as these could permanently cripple our pulp and paper industry. A carbon tax could increase our direct costs by as much as 150 percent over the next
eighteen years and raise manufacturing costs by up to 14 percent. And if credit is not given to the use of biomass fuels, manufacturing costs could rise as much as
30 percent. Indirect costs would probably be higher than that 30 percent number. I don’t think it takes a scientist or a Kellogg School graduate to understand the
impact of a 30 percent hike in manufacturing costs. Paper mills could permanently close, thousands of jobs would probably be lost, and our position as the
world’s leading paper producer would surely deteriorate, if not vanish.
As an industry, paper’s payroll is about $26 billion a year, and we ex port goods worth more than $11.5 billion. In fact, our exports represent more than 2 percent of
all U.S. exports. From our perspective it would be just plain silly to jeopardize all of this based on a theory founded on poor or inexact science or someone’s
complex social or environmental agenda, using the false issue of climate change. What’s worse is that the jobs lost in the United States—and I think this is
referred to as some thing that has to be negotiated—will move to the developing nations that are aggressively expanding their pulp and paper capacity,
nations such as Malaysia, Thailand, Indonesia, and Brazil. These countries are not a part of the climate change equation as I understand it. And this means
that, at the moment, they are not required to reduce their CO emissions, nor do they subscribe to the practice of sustainable forestry. They are free to cut
their virgin tropical or rain forests at unsustainable levels. So what would the net effect of all this be? Well, the way we see it is that it will lead to an
increase in CO emissions on a worldwide basis and a loss of forests rich in biodiversity. Clearly this is not a level playing field, and we see no
environmental benefit in this scenario. In my opinion the loss of thousands of jobs to overseas countries that follow no environmental standard, frankly, is
absurd.
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Links: Cap and Trade
Binding emissions reductions would devastate six U.S. industries critical to the global economy: paper,
iron and steel manufacturing, petroleum refining, aluminum, chemical and cement manufacturing
Mulchay executive vice president and CEO of Northern Indiana Public Service Company ’98 – Patrick “The Importance of
Flexibility Implemented Through Voluntary Commitments to Reduce Greenhouse Gas Emissions” Global Climate Change, A senior
Level Debate at the Intersection of Economics, Strategy, Technology, Science, Politics, and International Negotiation p. 87-8
A U.S. Department of Energy study analyzed the potential economic impacts of increased energy prices on energy-intensive
industries, assuming that new greenhouse gas control policies will constrain only industrialized countries and that any
emissions control mechanism—from new energy taxes to emissions standards and tradable emissions permits—will drive up
energy costs to some degree. According to the study, rising energy prices driven by new climate commitments could have a
crushing effect on six U.S. industries: paper and allied products, iron and steel manufacturing, petroleum refining, aluminum
production, chemical manufacturing, and cement manufacturing. Increased energy costs from emissions mandates could
devastate the U.S. steel industry (which has already invested heavily in energy efficiency and pollution control technologies),
without bringing a significant de crease in worldwide energy-related emissions from steelmaking. Production will simply be
shifted to developing countries and may possibly lead to higher levels of overall pollution due to lower standards in those
countries. This issue highlights the necessity for the thoughtful application of binding agreements for all nations—developing
and developed. Energy costs account for approximately one-third of the cost of making steel. Almost half of the electricity
NIPSCO generates is de livered to the steel industry. Steelmaking facilities in northern Indiana have invested substantially in
the past decade to improve their efficiency, both in production and in energy use. Primary Energy, a subsidiary of NIPSCO
Industries, is developing cogeneration projects with several of our steelmaking customers. These projects will contribute
significantly to NIPSCO’s greenhouse gas reductions. In 1998 three Primary Energy cogeneration projects will go on-line at
Inland, U.S. Steel, and National Steel, displacing nearly one million metric tons of NIPSCO’s carbon dioxide emissions.
Sensible decision making on the greenhouse gas issue should involve a careful balancing of costs and benefits. However, this is
complicated by the global effects of greenhouse gas concentrations in the atmosphere, the long-term consequences and short-
term costs associated with the issue, and the global economy and tension between developed and developing nations.
Cap-and-trade would also have a nasty effect on consumers’ power bills. Say there’s a very hot summer week in California. Utilities
would have to shovel more coal to produce more juice, causing their emissions to rise sharply. To offset the carbon, they would have
to buy more credits, and the heavy demand would cause credit prices to skyrocket. The utilities would then pass those costs on to their
customers, meaning that power bills might vary sharply from one month to the next.
That kind of price volatility, which has been endemic to both the American and European cap-and-trade systems, doesn’t just hurt
consumers. It actually discourages innovation, because in times when power demand is low, power costs are low, and there is little
incentive to come up with cleaner technologies. Entrepreneurs and venture capitalists prefer stable prices so they can calculate
whether they can make enough money by building a solar-powered mousetrap to make up for the cost of producing it.
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Litigation Kills Invest Con
DANIEL TINKELMAN, Assoc. Prof – Accounting, Pace University, Et al, 2007. “Using the Event Study Methodology to Measure
the Social Costs of Litigation - A Re Examination Using Cases from the Automobile Industry.” Review of Law & Economics, Vol. 3
Issue 2, p1-42. (co-authored by: SURESH GOVINDARAJ, associate prof - Accounting, Business Ethics & Information Systems, State
University of New Jersey and PICHENG LEE, associate prof – Accounting, Pace University)
In a comprehensive study extending prior research, Prince and Rubin (2002) use the event study methodology, and find negative
market reaction to a sample of 15 initial filings of product liability litigation and 29 other litigation events against U.S. automakers
between 1973 and 1995. They conclude that the event study methodology is a useful way to measure the costs of litigation. In
contrast, after examination of a new sample of 144 initial filing events and 465 other litigation events for six major automobile firms
from 1985 to 2000, and after re-examining Prince and Rubin’s data, we find that the market reaction to all but the most extreme and
infrequent events is generally not significant. We suggest that the event study methodology may not generally be useful to study the
social costs of litigation, but may be useful for unexpected abnormal litigation events where the potential liabilities (including
reputation and other losses triggered by litigation) may far exceed the legal liability reserves set up by firms. We find mixed results
for the market impact of litigation against a competitor. When a product liability lawsuit is first filed against a U.S. firm, the market
values of the Japanese firms significantly decline. When a Japanese firm is sued for product liability, the U.S. firms register a
significant increase in market value. However, these spillover results have to be interpreted with caution because of small sample
sizes and possible confounding events.
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Regulations Kill FDI
The statistical evidence suggests that there exists a significant negative linear relationship between FDI of the US chemical and metal
industries and the strin- gency of environmental regulation in a foreign host country. In general, lax environmental policy tends to
attract more capital inflow from the US for pollu- tion intensive industries. Viewed differently, tough environmental regulations
would tend to impede or discourage FDI from these industries. Since chemicals and primary metals are probably the most polluting of
all industries, this result may have implications for the relationship between environmental regulations and capital movements for
other polluting industries. Also, this finding provides indirect support to the “pollution haven” hypothesis, which postulates that
devel- oping countries may utilize lenient environmental regulations as a strategy to compete for the investment of polluting industry
from developed countries. This result is strengthened by our inability to find a similar effect for other sectors for which pollution is
less of a problem – electrical and non-electrical machinery, transportation equipment and food products.
Foreign investment has empirically decreased because of strict regulations and taxes
Department of the Treasury, 5/10/07. “An Open Economy is Vital to United States Prosperity,”
http://www.ustreas.gov/press/releases/hp395.htm
At $1.9 trillion, the total stock of FDI in the United States in 2005 was equivalent to 15% of U.S. GDP. Foreign investment in the
U.S. is the ultimate vote of confidence in our economy. It signals a long-term belief in the strength of our markets and the skill of our
workforce.
*
In the last few years, the United States has not received as high a share of total worldwide FDI as it did before 2000. This trend
could be due to the growth of opportunities in emerging markets, burdensome U.S. legal, regulatory and corporate tax regimes, or the
misperception that the United States is no longer open to foreign direct investments.
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Changes in technology spill over to all sectors and globally – financial integration means news spreads quickly
Thomas Dalsgaard et al, Principal Administrator - Economics Department of the OECD, 2002. “ONGOING CHANGES IN THE
BUSINESS CYCLE – EVIDENCE AND CAUSES,” Société Universitaire Européenne de Recherches Financières,
http://www.suerf.org/download/studies/study20.pdf
There may be a number of causes behind increased share price correlations across countries. Financial integration and reduced
divergencies in macroeconomic policies are examples with repercussions throughout the economies. Others relate to global
developments in individual sectors driving correlations. An example could be technological change. In this case, increased cross-
country correlations would be driven by the sectors where such common technological change took place. Thus, the news driving
share price co-movements would tend to be industry-specific and increased aggregate correlation across countries would be the result
of increasingly correlated news in some industries. In the alternative case of economy-wide developments driving share price
correlations, the news driving increased correlation should be spread over all industries. Conditional variances of share price returns
may be considered aproxy indicator of risk, which again is affected by the arrival of new information. Thus, if conditional variances
have become more highly correlated in some sectors but not in others, this may suggest that the news driving share prices in the
former sectors have had amore global character, possibly as aresult of common technological developments. To shed light on this,
time-varying conditional variances of equity returns have been estimated for the G7 countries using aGARCH technique. Bilateral
correlations of conditional variances have subsequently been calculated for country pairs and the averages taken over all such country
pairs. This has been done for two sub-periods since 1973 and for anumber of sectors (Table 3). The results indicate an increased
correlation of total market volatility (or risk) driven, in particular, by the ITsector and more generally TMTshares (note that non-
cyclical services include the Telecom industry) as well as the financial sector. Given that major technological breakthroughs, product
developments and internationalisation have taken place in the TMTand financial sectors (where considerable deregulation and
liberalisation has taken place since early and mid 1980s) it is perhaps not surprising that the shocks affecting these industries transmit
more globally. Also, in light of the “new economy”, the results seem to be consistent with the hypothesis that common technology
shocks, spurred by rapid expansion of information and communication technology, may have been the main driving force in
concurrent asset price developments across borders.
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Biz Con Spillover – Domestic
Declines in biz and consumer con act as downside risks to the broader
economy – decrease demand
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Biz Con Spillover - Global
Globalization means U.S. biz con spills over – effects other nations’ growth
F&D (Finance & Development, a quarterly mag of the IMF), 2005, “Economic Spillovers”, September 2005, Volume 42, Number 3
But just how large is the impact of external economic conditions on a country’s growth? And as the world economy becomes
more integrated, has the importance of growth spillovers increased? We undertook three studies to try to answer these
questions. One study analyzed trade-related growth spillover in over 100 industrial and developing countries. The other two
studies sought to assess the impact of the United States and South Africa on the growth of other countries. Our results show
that economic conditions in trading partners do in fact matter significantly for growth. After controlling for other growth
determinants, we found that a country’s economic growth is positively influenced by both the growth rate and relative income
level of its trading partners. Our findings also suggest that countries benefit relatively more if their trading partners grow faster
than they themselves do and are richer. And we found evidence that some countries are indeed engines of global or regional
growth: the impact of the United States is significant in many countries around the world, and South Africa matters for
economic growth in the rest of Africa. In all three cases, we found the estimated impact of growth spillovers to be relatively
large. It has been larger in recent decades and for open economies, implying that international spillover effects may increase in
importance as globalization continues. What theory tells us Economic conditions abroad—including growth rates and income
levels—are thought to influence a country’s growth through several channels. * The most obvious channel is trade linkages:
a rise in trading partners’ growth leads to an increase in their demand for imports, which then contributes directly to an increase
in the net exports of the home country. And the positive implications of trade for economic growth are not limited to countries
that run surpluses, since countries can benefit from technology transfers and other efficiency gains associated with international
trade (Coe and Helpman, 1995). * With growing foreign direct and portfolio investment, the spillover effects of trading
partners may also be transmitted through financial linkages. * Finally, there may be indirect effects, with business and
consumer confidence in major countries influencing confidence in other countries.
Growth of world econ tied to U.S. biz con and consumer con
UNECE (United Nations Economic Commission for Europe), ’02, “2002 - United States: leading the global recovery
Western Europe: moderate growth prospects”, http://www.unece.org/press/pr2002/02gen12e.htm
"An important risk to the forecast recovery in Europe and other regions of the world economy is its dependence on a sustained
and gradually strengthening expansion of domestic demand in the United States," said Mrs. Schmögnerová. This is expected to
stimulate domestic activity in the rest of the world, including Europe, via exports and the spillover effects from increasing
business and consumer confidence in the United States.
The internationalization of the market means business confidence spills over globally
Thomas Dalsgaard et al, Principal Administrator - Economics Department of the OECD, 2002. “ONGOING CHANGES IN THE
BUSINESS CYCLE – EVIDENCE AND CAUSES,” Société Universitaire Européenne de Recherches Financières,
http://www.suerf.org/download/studies/study20.pdf
A further, much more speculative, channel for greater synchronisation is the internationalisation of enterprises – over and above the
effect it may have on synchronisation of share prices as discussed in Box 4. For example, to the extent enterprises are multinational,
the need to retrench because of developments in one market may cause cut-backs in activities in other countries, and viceversain case
of buoyant conditions.38 It is difficult to get apicture of the potential importance of such effects. However, foreign direct investment
flows have expanded strongly in recent years pointing to apotentially rising influence of this channel (Figure 22). The transmission
of cyclical fluctuations over time may conceivably also be affected by “soft” factors such as confidence. Even if more tangible
influences such as linkages viatrade and asset prices may determine the overall magnitude of international transmission, its timing
could well be influenced by confidence. Indeed, over the decade of the 1990sthere has been avery high correlation between
indicators of business confidence and share prices in many countries, notably the United States. Although causality remains
uncertain, this may conceivably have speeded up the impact of share price developments by directly affecting the “animal spirits” of
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investors. Nevertheless, despite closer correlation of equity returns over the last two decades, it is not obvious that cross-country
correlations of confidence indicators have increased in any systematic manner.
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AT: Regulations Help Businesses
Even if regulations don’t hurt businesses, firms will overreact – they will ignore any benefits
Patrick Bernhagen, Department of Politics and International Relations - University of Aberdeen, 8/15/05. “Business Political Power:
Economic Voting, Information Asymmetry, and Environmental Policy in 19 OECD Countries,”
http://convention2.allacademic.com/getfile.php?file=apsa05_proceeding/2005-10-06/40383/apsa05_proceeding_40383.pdf
The negative link between environmental protection and economic performance is neither clear nor undisputed. While environmental
pioneers may suffer short-term economic disadvantages in international competition, early movers in the area of environmental
protection will be at an advantage in competition for innovative technologies (J?nicke 1992, 52). At the level of the individual firm,
however, no matter what society-wide benefits and even the long-term benefits to the firm there may be, envi- ronmental policies add
considerable compliance costs to firms. This may lead to cut- backs in research and development efforts, limit the innovative efforts of
firms, or even endanger their general profitability. As a result, firms will generally tend to em- phasize the costs of environmental
policy, while underestimating the benefits and op- pose environmental policy which they perceive to place them at a competitive
disad- vantage. Exceptions are cases where firms can achieve protectionist benefits through stricter environmental policies. In
practice, however, these are rather rare (Murphy 2004)
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Flight Bad – Econ/Environment
Industrial flight hurts the economy and can’t solve pollution – businesses will just move to laxer countries
Yuquing Xing, professor of economics at Graduate School of International Relations, International University of Japan, 4/18/01, “Do
Lax Environmental Regulations Attract Foreign Investment?” Environmental and Resource Economics, ,
http://www.springerlink.com/index/3JUUUG48YY29QHMU.pdf
To correctly interpret our findings, one should keep in mind that the environ- mental variable is only one of the determinants of the
FDI. Our empirical study only identifies the impact of environmental regulations on capital outflows and reveals the role of
environmental regulations in the decision-making of the FDI of polluting industries. It would not be appropriate to conclude that
environ- mental regulation alone can decide the direction of FDI flow for a polluting industry. We have no convincing evidence that
the environmental variable domi- nates other determinants in the process of determining FDI of a polluting industry. However, to the
extent that the environmental policy gap between developing and developed countries widens, more capital investment associated
with polluting industries can be expected to flow to countries with lax environmental regulation. This could result in a significant
migration of polluting industry to “pollution havens”. The flight of polluting industries may cause economic problems such as
unemployment in the short run for the country exporting capital, and may also expedite environment degradation of host countries. In
addition, the migra- tion of polluting industries only changes the geographic location of pollution generation. If the pollution is
undepleted and can spill over borders (via rivers, aquifers, precipitation or air movement), the reduction of the pollution at the
country with strict environmental regulations may be at least partially offset by an increase in pollution in other countries. Thus the
free mobility of capital asso- ciated with polluting industries may undermine noncooperative efforts at pollution control.
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AT: No Flight
Skeptics of industrial flight are wrong – their studies focus on goods flow, not capital flow
Yuquing Xing, professor of economics at Graduate School of International Relations, International University of Japan, 4/18/01, “Do
Lax Environmental Regulations Attract Foreign Investment?” Environmental and Resource Economics, ,
http://www.springerlink.com/index/3JUUUG48YY29QHMU.pdf
An alternative view, without as much theoretical justification, is that environ- mental regulations have no effect on plant location. The
basic argument is either that cost effects are so small as to be negligible or that increased environ- mental quality is reflected in
reduced employee compensation. Without regulation, employees would have to be paid more to live and work in polluted conditions.
Thus in equilibrium, the total costs will be the same. Using the later argument, one would still expect to see particularly polluting
industries moving to loca- tions endowed with a clean environment (perhaps temporarily) and with weaker environmental
regulations. The empirical literature to date supports the view that environmental regulations do not matter.2
While empirical studies of the industrial flight/pollution haven hypotheses have been illuminating, their shortcomings suggest that the
question has not yet been fully answered. One problem with previous empirical studies is that the endo- genous variable, intended to
track the effects of environmental regulations, is unsatisfactory. For instance, Low and Yeates (1992) use a country’s share of
production in total world trade of pollution-intensive products as a proxy for specialization in polluting goods. This is a coarse
measure of specialization. Such a variable is determined by a wide variety of factors in addition to the strictness of environmental
regulations. Furthermore, it is capital flow, not goods flow, which should be most affected by differential environmental regulations.
Only in the long run will a country’s production mix reflect capital movements induced by differential environmental regulations.
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Consumer Con Key to Econ
High consumer confidence indicates strong consumer spending – the key
internal link into the economy
Jim Lee, Professor of Economics at Texas A&M University-Corpus Christi, Oct. ‘02 “What is the role of consumer confidence in the
business cycle, and how does it affect the economy?”,
http://64.233.167.104/search?q=cache:jViVBhE4T_0J:www.tracer2.com/admin/uploadedPublications/181_tlmrexpert0210.pdf+consu
mer+confidence+key+to+economy&hl=en&ct=clnk&cd=22&gl=us
Consumers play a major role in the economy. This is because consumer spending accounts for two-thirds of U.S. output. Since
households’ economic outlook affects their spending behavior, their expectations influence the direction of economic activity in
the business cycle. Consumer confidence, or optimism about the overall economy, is commonly referred to as “animal spirits”
after a famous economist, John Maynard Keynes. Keynes asserted that the Great Depression of the 1930s was largely
attributable to a collapse of public confidence, which led to dramatic declines in consumer and business spending. Today,
consumer confidence receives a great deal of media attention. Rising consumer confidence is widely interpreted as a precursor
to higher future household spending. It is therefore a leading indicator of the overall economy. If consumers are more
optimistic about the economy, they will tend to spend more, especially on durable goods and other large purchases. A higher
overall demand for goods and services will subsequently lead to higher output and employment.
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Biz Con Key to Growth
Business confidence key to sustaining growth via investment
Sue Kirchhoff and Barbara Hegenbaugh, 2004, USA Today, “What's worrying business? Confidence erodes across industries”,
http://www.usatoday.com/educate/college/careers/news12.htm
Business investment and hiring are key to sustained economic growth, as consumer spending growth slows from its heady
pace. While corporate profits and spending have ramped up, economists are nervous about one key element -- confidence.
Business confidence has eroded since spring, according to several surveys. On Monday, economic consulting firm
Economy.com said its weekly survey of business owners showed declines were widespread, both geographically and across
industries. The U.S. index is off 25% from its peak earlier this summer. How business executives see the world is key for the
economy because it can influence decisions on hiring and investing. Nervousness is likely one reason hiring has been patchy
this year, spiking in March but growing less rapidly since then.
John Braithwaite, Australian Research Council Federation fellow, 2004, The Annals of The American Academy of Political
and Social Science, March, “Emancipation and Hope,” Lexis
The challenge of designing institutions that simultaneously engender emanci- pation and hope is addressed within the
assumption of economic institutions that are fundamentally capitalist. This contemporary global context gives more force to the
hope nexus because we know capitalism thrives on hope. When business confidence collapses, capitalist economies head for
recession. This dependence on hope is of quite general import; business leaders must have hope for the future before they will
build new factories; consumers need confidence before they will buy what the factories make; investors need confidence before
they will buy shares in the company that builds the factory; bankers need confidence to lend money to build the factory;
scientists need confidence to innovate with new technologies in the hope that a capitalist will come along and market their
invention. Keynes’s ([1936]1981) General Theory of Employment, Interest and Money lamented the theoretical neglect of
“animal spirits” of hope (“spontaneous optimism rather than . . . mathematical expectation” (p. 161) in the discipline of
economics, a neglect that continues to this day (see also Barbalet 1993).
Trying to jump-start the economy by reducing interest rates even further is like pushing on a string. Despite the fact that
the Federal Reserve has lowered the federal funds rate to 1.75%, its lowest level in 40 years, the Index of Leading Economic
Indicators (the measure used to gauge the future health of the economy) has declined for four consecutive months. Why
is the economy so anemic? One major reason is declining consumer and business confidence. Think of it this way:
Suppose you decide to make a major purchase, such as a house or automobile. If the price has been determined, two additional
factors are likely to figure prominently in your decision to make the purchase. The first factor is the interest rate, which is
nothing more than the cost of borrowing money. The second factor is how confident you are about your future earnings.
For example, if you are concerned about job security, you are not likely to make the purchase, no matter how low
interest rates might be. The same logic holds for business owners deciding whether to undertake a new investment.
While interest rates are important because they affect the total return on capital invested, if business owners are pessimistic
about future economic activity, even low interest rates will not be attractive enough to make them invest.
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Investment Key to Econ
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Investment Key to Econ
So the pendulum has swung. Stocks that once traded at sky-high prices are now cautiously valued. Investors have grown weary of
significant losses, and are now wary of a marketplace where the information provided cannot be trusted.
As long as investors do not trust the financial system, investment performance will lag economic performance. Lacking confidence,
they will overweight risk, discount values and potential returns, and shy away from committing new capital to the market. I believe
this can and will act as a brake on essential capital formation. I believe will weaken and slow both the economic recovery and long-
term growth.
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Foreign Investment Internal Link
USINFO, 2/12/07. “Foreign Investment in U.S. Benefits Economy, Bush Advisers Say,” http://www.america.gov/st/washfile-
english/2007/February/20070212165404AKllennoCcM0.7061731.html
Washington -- Foreign direct investment in the United States benefits the U.S. economy by stimulating growth, generating jobs for
U.S. workers, promoting research and development, and financing the current account deficit, say President Bush’s key economic
advisers.
Recently, foreign direct investment in the United States has stagnated, according to the annual Economic Report of the President
released February 12. The share of employment credited to foreign investment declined slightly between 2000 and 2004 and the share
of foreign investment in the U.S. capital account has declined since 1999.
The current account deficit is the broadest measure of U.S. transactions with the rest of the world. The U.S. capital account is the flow
of money both into the United States and from the United States for investment, grants and loans.
Department of the Treasury, 5/10/07. “An Open Economy is Vital to United States Prosperity,”
http://www.ustreas.gov/press/releases/hp395.htm
Foreign firms in the U.S. account for 5.7% of U.S. economic output, as well as 10% of all investment in plant and equipment in
the United States.
*
Foreign firms in the U.S. re-invested $48.6 billion (45% of their income) back into the U.S. economy in 2004. This investment
furthers innovation and promotes economic growth.
*
Foreign firms generate 19% of U.S. exports ($153.9 billion in 2006). This contribution is greater than their overall percentage of
U.S. economic output, which means they are doing more than their share to help improve the U.S. trade balance.
*
Foreign firms in the U.S. generate a disproportionate share of national R&D spending (13%, totaling $29.9 billion). This spending
strengthens U.S. global competitiveness in pharmaceuticals, high-tech, and other key sectors and produces innovative products that
help to improve our standard of living.
*
The economic benefits generated by inflows of foreign capital help strengthen economic leadership. In the late 1980s and early
1990s, some pointed with alarm to Japanese purchases of U.S. assets, fearing they foreshadowed the Japanese overtaking our
economic leadership. Twenty years later, the resulting jobs and economic growth show those fears were misplaced.
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would collapse and the US would experience an unprecedented economic shock. Were this to happen, the world would
witness the end of American hegemony.
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Foreign Investment Internal Link
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AT: Regulations Competitiveness
All the evidence goes the other way – no empirical evidence that regulations stimulate competitiveness
Robert N. Stavins, Assoc Prof – Public Policy, Harvard, 1994. [“The Challenge of Going Green,” Harvard Business Review, Vol. 72
Issue 4, p37-48]
The picture is bleaker still for the tenet that environmental regulation stimulates innovation and competitiveness. Not a single
empirical analysis lends convincing support to this view. Indeed, several studies offer important, if indirect, evidence to the contrary.
Natural skepticism regarding this regulatory free lunch should remain unabated.
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Bizcon key to Econ
Bizcon is key to prevent economic collapse resulting from a lack of investment
Thomas Boston, Black Enterprise, “Confidence is key: economist cites the importance of business outlook to recovery -
The Economy & You”, http://findarticles.com/p/articles/mi_m1365/is_6_33/ai_95845058, Jan 2003
Trying to jump-start the economy by reducing interest rates even further is like pushing on a string. Despite the fact that
the Federal Reserve has lowered the federal funds rate to 1.75%, its lowest level in 40 years, the Index of Leading Economic
Indicators (the measure used to gauge the future health of the economy) has declined for four consecutive months. Why
is the economy so anemic? One major reason is declining consumer and business confidence. Think of it this way:
Suppose you decide to make a major purchase, such as a house or automobile. If the price has been determined, two additional
factors are likely to figure prominently in your decision to make the purchase. The first factor is the interest rate, which is
nothing more than the cost of borrowing money. The second factor is how confident you are about your future earnings.
For example, if you are concerned about job security, you are not likely to make the purchase, no matter how low
interest rates might be. The same logic holds for business owners deciding whether to undertake a new investment.
While interest rates are important because they affect the total return on capital invested, if business owners are pessimistic
about future economic activity, even low interest rates will not be attractive enough to make them invest.
Thomas D. Boston, heads Boston Research Group in Atlanta & member of the Black Enterprise Board of Economists, 1-1-03,
“Confidence is key: economist cites the importance of business outlook to recovery”,
Think of it this way: Suppose you decide to make a major purchase, such as a house or automobile. If the price has been
determined, two additional factors are likely to figure prominently in your decision to make the purchase. The first factor is the
interest rate, which is nothing more than the cost of borrowing money. The second factor is how confident you are about your
future earnings. For example, if you are concerned about job security, you are not likely to make the purchase, no matter how low
interest rates might be. The same logic holds for business owners deciding whether to undertake a new investment. While interest
rates are important because they affect the total return on capital invested, if business owners are pessimistic about future
economic activity, even low interest rates will not be attractive enough to make them invest. Over the past year, business owners
have been more wary than consumers, so investments have lagged. Fortunately, consumer spending has carried the economy
forward--even though consumers are facing record levels of debt. But the situation has changed over the last three months. The
growing number of job losses has caused consumers to become cautious. As a result, if the economy is to improve, investment
must pick up. But low interest rates alone will not get the job done. Rather, the key index to watch is business confidence. The
Gazelle Index, a survey of 350 of the nation's fastest growing black-owned businesses as measured by workforce growth rates,
took a sharp drop, from 67.7 to 49.5, between the second and third quarters. An index value below 50 indicates that business
owners are more negative than positive about economic conditions. Why is the index value important? When business leaders are
concerned about the economy, they reduce hiring, which contributes to higher unemployment rates.
Business investment is the dominant factor – biz con dictates the direction of
the economy
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Indo-Pak war
The situation now is much, much worse as more factors combine to suggest that foreign investors and trust in the U.S.
economy might soon be a thing of the past. Your pension is at risk today and your home may be at risk in six months to a
year. One economic analyst has suggested that a nuclear exchange between India and Pakistan might be the perfect
cover for the biggest financial wipe out in human history. I think that an ill-conceived and risky invasion of Iraq might
serve the same purpose. From consumer confidence, to corporate accounting, to the dollar, to gold, to foreign capital
flight, to pension fund wipe outs, to the derivative bubble, to debt, there is not a single economic indicator that is not
flashing red. The warnings are as clear, explicit and well-documented as were the warnings received by the U.S. government
throughout summer 2001 that a terrorist attack against the World Trade Center would take place during the week of Sept. 9
using hijacked airliners from United and American airlines. Nothing was done to prevent that and apparently nothing is being
done now in spite of the fact that $4.2 trillion of your money has been stolen right in front of your eyes.
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2AC Biz Con Frontline
"In the U.S., consumer confidence is in freefall," he says. Confidence is falling faster now than between 2001 and 2003, when the
United States was enduring a high-tech meltdown, a mild recession and a major terrorist attack. European confidence peaked a year
ago and has plunged since then, especially in Britain. Japan's confidence levels peaked in 2006, but are now at recessionary levels.
Confidence in Canada is sliding too.
Consumers in these countries account for about 50 per cent of world production, he says. "The prognosis for near-term world
economic growth is not encouraging."
Business confidence is higher, but is also eroding in Europe, Japan, and particularly in the United States.
"Confidence is arguably most important when conditions slow," Mr. Hall warns. "Pessimism sells, it spreads rapidly, and can be self-
fulfilling. A significant lapse of confidence can even erode parts of the economy that are not drowning in the excesses created by a
protracted period of prosperity."
That criticism misses a larger point, something that Fannie Mae and Freddie Mac are making painfully clear in the United States: The
housing market depends not just on the confidence and borrowing ability of people interested in trading up from a bungalow to a two-
storey with an ensuite Jacuzzi and a great room. It depends on investor confidence and the borrowing ability of the giant government-
backed lenders that really fund mortgages. In the United States, that investor confidence is gone and the ability of Freddie and Fannie
to borrow may follow. That's an unprecedented threat to the housing market, which is saying something given what the United States
has already been through. Freddie and Fannie are federally chartered companies created to help homeowners by purchasing the
mortgages that banks make, freeing up banks to make even more. With the implicit backing of the U.S. government, Fannie and
Freddie could borrow cheaply in the bond market to finance mortgage purchases. Until recently, that is. Investors are shying away and
borrowing costs have shot up relative to government bonds. Investors are worried about the highest delinquency rates on mortgages in
at least three decades. Many of those mortgages have terms like zero-down and 40-year amortizations. If those terms sound familiar,
it's perhaps because Canadian banks had been advertising them lately.
We have just completed a thorough evalu- ation of our ideas using real-world data on more than 300 of the largest public com-
panies in the U.S., and have produced results that validate our hypothesis. As suggested by financial theory, we have computed
changes in systematic risk for each firm over two time periods, and related these to a number of financial and environmental
variables using multiple regression analysis. We constructed our analysis to explain as much of the vari- ability in observed
systematic risk as pos- sible using factors suggested by finance theory and empirical observation. Using this approach, we were able
to isolate and quantify the effects of several environ- mental management and environmental performance measures that have both
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practical and statistical significance. Our work suggests that environmental improvements such as those we have eval- uated might
lead to a substantial reduction in the perceived risk of a firm, with an accompanying increase in a public company’s stock
price, of perhaps five percent.
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Roger G. Noll, professor of economics emeritus at Stanford University and a Senior Fellow at the Stanford Institute for Economic
Policy Research, ’97, “Internationalizing Regulatory Reform” in “Comparative Disadvantages? Social Regulations and the Global
Economy” Ed. Pietro S. Nivola. Published by Brookings Institute Press, pp. 332-333
The international consequence of incentive-based environmental regulatory reforms is to reallocate production among nations in a
manner that reduces total social costs. These reforms reduce compliance costs for industries that need to control harmful pollutants. As
a result, the relative price of the products of these industries falls, and if their products are traded these industries gain a larger share of
the world market. In some cases, the principal effect is to substitute domestic production for exports that appeared attractive only
because they were produced in a less costly regulatory environment, and in other cases it is to increase exports of the industries that
experience lower regulatory compliance costs. In all cases, all prices and exchange rates will adjust so that some other industries
experience some compensating adjustment in net imports, and total trade can either rise or fall. But in all cases, the net effect is an
increase in world productivity and income as production moves to areas where the true social costs are lowest.
Christian E. Weller, Fellow at the Center for American Progress and an Associate Professor of Public Policy at the University of
Massachusetts Boston, and Amanda Logan, Research Associate at the Center, 3-5-08, “Slowing Productivity Growth Requires
Boosting Business Investment”, http://www.americanprogress.org/issues/2008/03/slow_productivity.html
The Labor Department reported this morning that worker productivity increased at an annual rate of just 1.9 percent in the
fourth quarter of last year, the slowest pace since the first quarter of last year. This also marks the third year in a row that
productivity growth fell below the crucial 2 percent-mark. In our report last year, “Ignoring Productivity at Our Peril,” we
examined the likelihood of a general slowdown in productivity and economic growth in the fourth quarter and what that would
mean to U.S. economic competitiveness over the course of 2008. As we pointed out in the report, worker productivity is a key
component of economic growth and stability. Over the past seven years, economic growth has largely been driven by consumer
spending, which is unsustainable in the long run because of the low personal savings rate, slow income growth, and high
household financial debt financing consumption. Despite record profit levels, many companies have chosen to use their money
in ways other than investing directly in growing their businesses’ overall productivity—and we are seeing the results. More
business investment can lead to higher future productivity growth via an enlarged capital base. The rewards of higher
productivity growth come in the form of more money for workers to spend on consumption items. This extra money will
provide businesses with an incentive to invest more in their buildings and equipment, thereby laying the foundation for even
higher productivity in the future.
The virtuous cycle of higher investment, rising productivity growth, and growing income helped lift almost all economic boats
in the 1990s. From 1995 to 2000, productivity grew at an annual rate of 2.5 percent, which some researchers have attributed to
investments in better technology such as hardware and software. Under the right circumstances, this translates into higher
living standards in an expanding economy. Boosting business investment to overcome indications of a vicious productivity
cycle taking hold in our economy would have positive effects for the economy both in the short term and the long term. In the
immediate future, faster investment growth could give the economy a much-needed boost as consumer spending has slowed in
the wake of a massive debt run-up and as households concentrate on repaying their record-level debt. Over the long term, faster
investment growth could also help lay a stronger foundation for innovation—the key but elusive measure of our nation’s
overall competitive advantage in the global economy. But businesses will not invest unless incomes rise faster, which means
policymakers need to ensure that workers can see more gains from a growing economy in the form of faster job growth and
higher wage growth. At the same time, policymakers must create additional incentives for companies to invest in new
technologies appropriate for a creative U.S. economy that remains on the cutting edge of global innovation. Our colleagues at
the Center for American Progress have detailed how the next administration and Congress can begin to chart this new course in
our “Progressive Growth” series of papers. It’s time we got started.
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2AC Biz Con Frontline
Table I also reports the abnormal returns around the settlements of hazardous waste lawsuits. No statistically significant abnormal
performances occur during the event window. The lack of abnormal returns indicates that the announcement of court
decisions/settlements provides no new systematic information to investors. To check whether the lack of significant returns was a
result of suits with positive returns canceling those with negative returns, the settlements were individually examined for abnormal
returns. Only 4 firms in the sample of 74 show significant abnormal returns during the two-day event interval (2 positive and 2
negative), which is fewer than would be expected randomly at the 90 percent confidence level. Given the lack of statistically
significant abnormal returns, no further analysis of lawsuit settlements is conducted.
Squo solves their impacts – biz con fluctuates in the business cycle, it will
eventually be restored
The world economic market overall is uncertain at this stage, but all cycles - good and bad - come to an end. "But I
think that the country's macro-economic policies remain strong and despite a number of external global factors - like
the much-publicized subprime mortgage crisis and credit crunch faced by many countries - we should be heading for
less choppy waters as we approach the third and fourth quarters of next year," added Mokoena. "Also, as we head
towards the 2010 soccer World Cup I believe a more positive business sentiment will start emerging. Consumers and
companies just need to fine-tune their current business strategies and ensure they are well placed to weather the storm.
Those companies that plan for the business upturn now are the ones that are really going to shine.”
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Small business confidence low
Small business confidence is down due to rising prices
Unfortunately, small business economic confidence is at an all-time low. In fact, confidence indicators were down in every single
category of the survey. "With prices rising, especially gas and food, just about everybody is feeling the squeeze," says, Discover
business credit card director Ryan Scully. "People are starting to change their habits and cut back. For small business owners
who are seeing profits go down as a result, that means they have less to invest in finding new business," Scully added
Confidence low now – investors are preparing for low earnings and high oil prices
Glenn Mumford, staff writer - Australian Financial Review 6/24/08. “Testing times for investor confidence,” Australian Financial
Review. Factiva
Equities here and in the United States are in the process of building a major base, but recent market weakness has certainly provided a
key test of this belief. The fact that the local market’s forward price-earnings ratio has moved to less than 12 times - with the major
banks and resource companies registering at less than 10 times - suggests investors are pricing in either a new wave of negative
earnings revisions or a sustained bout of inflation-inspired P/E compression. The rising oil price will be significant in all this, and
local resources companies will be required to support the general market. This week could also see a resolution of iron ore pricing
negotiations for BHP Billiton and Rio Tinto. Do we bounce or do we dive? I’m sticking with the first option, but a lot will depend on
the oil price. Expect a volatile week.
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Election Kills Bizcon
The upcoming election has shattered business confidence due to ambiguity regarding the next president’s
economic policies.
Peter Ryan, ABC News, “Business confidence plunges on election uncertainty”,
http://www.abc.net/news/stories/2007/11/23/2098730.htm, 2007
The survey of 2,000 businesses, conducted by Telstra's directories arm Sensis, found confidence had fallen 16 points in the
three months to October to 43 per cent. The decline in confidence is the biggest fall in the survey's 14-year history. The
author of the Sensis Business Index, economist Christena Singh, said businesses were concerned about the outlook for
workplace relations as well as a possible change in leadership. "What we are finding is that small businesses are telling us that
their confidence has been impacted quite dramatically in the lead up to the election," Ms Singh said. "The main factors
influencing that are a potential change of government, with the key issues small businesses are looking at being
industrial relations and economic management ."We have been picking up strong economic conditions for the past few
years really from small businesses and they are concerned there might be some change there."
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BIZ CON CYCLICAL
Although business confidence is decreasing, it fluctuates in a cycle meaning it will eventually be restored
The Business Report, “Drop in business confidence part of a cycle”, http://www.fastmoving.co.za/news-archive/sa-
economy/drop-in-business-confidence-part-of-a-cycle, July 8th, 2008
The world economic market overall is uncertain at this stage, but all cycles - good and bad - come to an end. "But I
think that the country's macro-economic policies remain strong and despite a number of external global factors - like
the much-publicized subprime mortgage crisis and credit crunch faced by many countries - we should be heading for
less choppy waters as we approach the third and fourth quarters of next year," added Mokoena. "Also, as we head
towards the 2010 soccer World Cup I believe a more positive business sentiment will start emerging. Consumers and
companies just need to fine-tune their current business strategies and ensure they are well placed to weather the storm.
Those companies that plan for the business upturn now are the ones that are really going to shine.”
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Bizcon declining - flooding
Bizcon declining in the squo – flooding is damaging agricultural sector of the economy
Buisness First, ABC News, “National City: Business confidence declines”,
http://www.bizjournals.com/louisville/stories/2008/06/30/daily13.html20, 08
National City (NYSE: NCC) contacted business managers in Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio and Pennsylvania,
and asked them two questions: Business outlook and hiring plans indices are calculated by adding the percentage of total positive
responses and half of the neutral responses. The composite index is calculated by averaging the outlook and hiring plans indices.
Respondents contacted in June said they feared ripple effects of recent Midwestern flooding, including higher food prices.
"Natural disasters seldom prove as damaging to economic growth as their first impressions," National City chief economist
Richard DeKaser said in a news release. "The impact of flooding on agriculture, however, is different as crop cycles, which are
measured in years, are not readily recouped. "In Louisville, 55.4 percent of business managers expressed optimism about the
economy, compared with 81.3 percent a year earlier. In Kentucky, 71.6 percent expressed optimism, down from 83.3 percent in
June 2007. In Indiana, 66.9 percent expressed optimism, down from 80.4 percent a year earlier.
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Banking crisis ensures business confidence remains low – tight credit market
William Rees-Mogg, The Times UK, 7-14-08, “This recession could easily tip into a depression”,
http://www.timesonline.co.uk/tol/comment/columnists/william_rees_mogg/article4326794.ece
The present recession has some characteristics which make me think that it will be a relatively long one. The recession is centred on
banking and property. In an ordinary recession, one has to wait for consumers to regain their confidence, which, in turn restores the
confidence of business. Now one has to wait for the bankers as well. At present, banks are too anxious even to lend to each other, let
alone to expand consumer credit or business loans.
Business confidence levels across the Gulf continued to fall in the second quarter, as inflation, high oil prices and
staffing problems dampened sentiment, the HSBC Gulf Business Confidence Index has revealed.The survey, released on
Sunday, found that while the general mood of Gulf business people remained buoyant, levels of business confidence had
maintained their downward trend of the past 18 months. Overall, the Business Confidence Index dipped to a mark of 94
from the benchmark 100 set in February 2007 when HSBC started the index. The index dropped from 96.8 in the first
quarter of this year.
"In the short term, these events do imply a greater measure of financial restraint on economic growth as credit becomes more
expensive and difficult to obtain." Already there are signs that it is getting harder to sell bonds linked to credit cards and
car loans, and there are worries that spreads on corporate bonds are tightening. The tightening of credit will hurt
economic growth because in the US consumers have borrowed heavily to fund their consumption. The latest figures
indicate that consumer and business confidence is slumping both in the US and Europe as worries about the effects of the
credit crunch grow.
B&T Weekly, Australian News Magazine, 6/13/08. “Forum paints retail at a crossroads,” Factiva
The current economic landscape is the most significant challenge facing retailers in a generation. The problems are structural and a
consequence of costs growing faster than consumer spending. This is evident in mature retail markets.
The economic malaise is clearly affecting consumer spending and business confidence in the United States and Western Europe much
more than we have seen to date in Australia.
But while we haven't fallen off the cliff, local retailers can't afford to be complacent. Recent consumer confidence surveys indicate
mounting concern, while retail market darlings like Harvey Norman, David Jones and JB Hi Fi are cautious about weakening
consumer demand.
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Reuters, 12/18/07. “Market woes, oil, forex to curb euro zone growth-EU,” Factiva
BRUSSELS, Dec 18 (Reuters) - The global credit crunch, created by uncertainty about the size of losses in the U.S. mortgage market,
will curb euro zone economic growth in coming quarters, the European Commission said on Tuesday.
Financial market estimates showed losses related to rising default rates in the U.S. mortgage market could reach $250-500 Billion
compared to an earlier range of $50-100 billion, the EU executive said in a quarterly report.
Euro zone growth was also at risk from high oil prices and the strong euro, it said, but added that activity would be supported by
robust employment and record-high corporate profitability.
"Tighter financing conditions, reduced confidence in the aftermath of the financial market turmoil and rising inflation, among other
factors, will weigh on growth in the next few quarters," the report said.
It said the global credit crunch would affect growth through higher market lending rates, lower consumer and business confidence and
reduced consumption in the United States.
Starting with the Enron Corp. bankruptcy filing on December 2, 2001, the United States gas and power trading business has
sustained one blow after another. Credit downgrades, accounting scandals, governmental investigations, falling stock prices,
indictments and guilty pleas have been reported in the news for months. The companies involved have included many well-
respected energy trading companies. Throughout the energy trading business, few companies with gas and power trading
operations have been spared reputational harm and economic loss. There has been a loss of confidence in the entire business,
which emerged less than a decade ago. Rapid growth, inadequate credit and risk management controls, a poorly designed
California energy market and the Enron bankruptcy all contributed to this loss of confidence.
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Consumer Confidence Down
Consumer confidence is shot due to rising food and oil prices
Buisness Wire, “Administaff Announces Results of Business Confidence Survey
http://findarticles.com/p/articles/mi_m0EIN/is_2008_May_12/ai_n25408031, May 12th 08
A key measure of consumer confidence dropped in June to the fifth lowest reading ever, as Americans grew more
concerned about their jobs and rising food and fuel prices .The New York-based research group Conference Board said
Tuesday that its Consumer Confidence Index dropped to 50.4 from a revised 58.1 in May. The reading was the lowest
since February 1992, when it was 47.3.Economists had expected the index to decline to 56, according to
Briefing.com.Lynn Franco, director of the Conference Board, said the report is an indication that the economy is "stuck in
low gear."
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Investor Confidence Low
Investor confidence low now – job cuts, high energy and food prices
Washington Post, 7/15/08. “Bush Expresses Confidence in Economy; Bernanke Cites Long List of Problems,”
http://www.washingtonpost.com/wp-dyn/content/article/2008/07/15/AR2008071500999.html?hpid=topnews
Wall Street was lower again today, with major U.S. indexes off as much as 1.5 percent in early trading. Asian and European markets
both fell overnight.
Bernanke spoke at a time of uncertainty on a number of fronts. Despite a recent series of Fed actions to cut interest rate and keep cash
flowing among banks and financial companies, U.S. growth remains sluggish and employers have eliminated jobs for six months in a
row. Meanwhile, rising prices for energy, food and a list of commodities has made for an "unusually uncertain" outlook for inflation,
Bernanke said.
As a result, "accurately assessing and appropriately balancing the risks to the outlook for growth and inflation is a significant
challenge for monetary policy makers," Bernanke said. "Given the high degree of uncertainty, monetary policy makers will need to
carefully assess incoming information bearing on the outlook for both inflation and growth . . . In light of the increase in upside
inflation risk, we must be particularly alert" to evidence of higher long-term inflation expectations.
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Consumer Con Low
Consumer con at all time low
BOYD ERMAN, The Globe and Mail's capital markets reporter, 7/12/08. “Good timing: Feds avoid Fannie-style mortgage freefall,”
The Globe and Mail, Lexis
That criticism misses a larger point, something that Fannie Mae and Freddie Mac are making painfully clear in the United States: The
housing market depends not just on the confidence and borrowing ability of people interested in trading up from a bungalow to a two-
storey with an ensuite Jacuzzi and a great room. It depends on investor confidence and the borrowing ability of the giant government-
backed lenders that really fund mortgages. In the United States, that investor confidence is gone and the ability of Freddie and Fannie
to borrow may follow. That's an unprecedented threat to the housing market, which is saying something given what the United States
has already been through. Freddie and Fannie are federally chartered companies created to help homeowners by purchasing the
mortgages that banks make, freeing up banks to make even more. With the implicit backing of the U.S. government, Fannie and
Freddie could borrow cheaply in the bond market to finance mortgage purchases. Until recently, that is. Investors are shying away and
borrowing costs have shot up relative to government bonds. Investors are worried about the highest delinquency rates on mortgages in
at least three decades. Many of those mortgages have terms like zero-down and 40-year amortizations. If those terms sound familiar,
it's perhaps because Canadian banks had been advertising them lately.
The Globe and Mail, Canadian News, 5/31/08. “THREE STATS YOU JUST CAN'T BE WITHOUT ON A SATURDAY: THE
WEEK IN ECONOMICS,” Lexis
"In the U.S., consumer confidence is in freefall," he says. Confidence is falling faster now than between 2001 and 2003, when the
United States was enduring a high-tech meltdown, a mild recession and a major terrorist attack. European confidence peaked a year
ago and has plunged since then, especially in Britain. Japan's confidence levels peaked in 2006, but are now at recessionary levels.
Confidence in Canada is sliding too.
Consumers in these countries account for about 50 per cent of world production, he says. "The prognosis for near-term world
economic growth is not encouraging."
Business confidence is higher, but is also eroding in Europe, Japan, and particularly in the United States.
"Confidence is arguably most important when conditions slow," Mr. Hall warns. "Pessimism sells, it spreads rapidly, and can be self-
fulfilling. A significant lapse of confidence can even erode parts of the economy that are not drowning in the excesses created by a
protracted period of prosperity."
Consumer confidence is at its lowest since 1992 – decreasing growth and home prices
Conference Board reports US consumer confidence fell to 50.4 in June from 58.1 in May, for lowest reading since 1992; second-
quarter growth is expected to be around 0.9%; latest evidence of slumping growth and tumbling home prices suggests Americans'
willingness to keep spending is being tested, making economic contraction more likely; Federal Reserve faced with economic
weakness is likely to keep interest rate steady at 2%; graphs (L)
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Consumer Con Low
Consumer confidence is at its lowest since 1982 – high fuel and food prices and decreasing incomes
LA Times, 4/26/08. “Consumer confidence hits 26-year low, survey says,” Lexis
U.S. consumer confidence fell for a third straight month in April, hitting its weakest level in 26 years on heightened worries over
inflation and the sagging housing market, a survey showed Friday. The Reuters/University of Michigan Surveys of Consumers said its
final index of confidence for April fell deeper into recessionary territory, to 62.6 from 69.5 in March and below economists' median
expectation of 63.2 in a Reuters poll. The April result is the lowest since March 1982's 62.0, when the "stagflationary" period of low
growth and high inflation was still an issue for many Americans. "More consumers reported that their personal financial situation had
worsened than any time since 1982 due to high fuel and food prices as well as shrinking income gains and widespread reports of
declines in home values," the survey said. "Never before in the long history of the surveys have so many consumers reported hearing
news of unfavorable economic development as in the April survey." Nearly 9 in 10 consumers thought the economy was now in
recession, Reuters/University of Michigan said. Although a tax rebate will bolster consumer spending, consumers favor "by a wide
margin" using the rebate to repay debt and to add to their savings, according to the surveys.
Investor and consumer confidence low now – uncertainties about interest rates
National Post (Canada), 6/25/08. “U.S. traders await Fed decision,” Lexis
Stock markets in the United States fell yesterday, on concerns about the economy after a report showed consumer confidence hit a 16-
year low and as a profit warning from United Parcel Service (UPS/NYSE) stoked fears about corporate results.
But trading volume was thin, with investors hesitant to place any big bets as they wait to see whether or not the Federal Reserve keeps
interest rates on hold as expected today.
Consumer confidence is the lowest in 28 years – high petrol and food prices
The Sunday Times, 7/13/08. “Oil and credit woes fuel long summer of discontent,” Lexis
This is the summer of our discontent. Only 14% of Americans are satisfied with the way things are going in the United States, the
lowest figure recorded by Gallup's pollsters since they began asking that question almost 15 years ago. Consumer confidence is at its
lowest level in 28 years, according to the respected Reuters/University of Michigan survey. And not many Americans are expecting
things to improve soon. "Consumers' economic outlook is so bleak that the Expectations Index has reached a new all-time low,"
reports the Conference Board. In part this pervasive gloom is due to petrol prices that have passed the $4-per-gallon (about 53p a litre)
level. In part it is the result of the squeeze soaring food prices are putting on consumers' wallets.
The Globe and Mail (Canada), 6/26/08. “Fed seems paralyzed by effect of energy prices on big picture,” Lexis
BCA noted that global expenditures on energy are approaching levels not seen since the early 1980s - and said the last time the "oil
drag" on consumers reached these levels, "the world economy veered off into a deep recession."
While the industrialized world's economy is less energy-intensive than it was a generation ago, and global fiscal and monetary
conditions are in much better shape, soaring energy costs are nevertheless a major threat to already fragile consumers (especially in
the U.S.), who are a key driver of global economic activity and who have already been battered by slumping housing and credit
markets.
As this week's U.S. Conference Board consumer confidence report showed, high energy costs are pushing them off the deep end.
Merrill Lynch economist David Rosenberg called the report "arguably the worst" in the 40 years the Conference Board has been
tracking consumer moods.
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G. Bruce Doern, Professor, School of Public Policy and Administration - Carleton University,
8/2004. “REGULATION AND ENVIRONMENTAL TECHNOLOGIES:KEY ISSUES AND
CHALLENGES,” http://www.huss.ex.ac.uk/politics/research/readingroom/DoernNRTEE.doc
After looking at the U.S. studies, Olewiler concluded in 1994 that they “give little evidence of environmental regulation having
any impact on investment in new plants or on patterns of international trade” (Olewiler, 1994, p. 87). But Olewiler also
immediately cautioned that there may well be greater impacts once 1980s and 1990s data was included and examined either at
an aggregate level or in particular industrial sectors. When adding very limited Canadian data on Canadian Pollution
Abatement Costs (PACs) to the 1994 picture, this study cautioned the reader on the limited nature of the Canadian data and the
problems of comparing it to the U.S. Nonetheless, one aspect of the Canadian data on PACs in the late 1980s was that
“Canadian PACs for pollution- intensive industries may be as much as three times those for similar U.S. industries” (Olewiler,
1994, p. 112). On an overall basis, Olewiler concluded, however, that “the available evidence suggests that international
investment flows have been relatively unresponsive to differences in environmental regulation across countries. A similar story
exists for differential regulations within countries. Other factor input costs are in general much more important, even for
pollution-intensive industries” (Olewiler, 1994, p. 111). Other studies also brought out similar conclusions (Dasgupta, Roy and
Wheeler, 1995; Jaffe, et.al., 1995; Vogel, 1998).
Michael Muoghalu, Director of MBA Program, Pittsburgh State University. 10/90. “Hazardous Waste Lawsuits, Stockholder Returns,
and Deterrence,” Southern Economic Journal, Vol. 57 Issue 2, p357
Table I also reports the abnormal returns around the settlements of hazardous waste lawsuits. No statistically significant abnormal
performances occur during the event window. The lack of abnormal returns indicates that the announcement of court
decisions/settlements provides no new systematic information to investors. To check whether the lack of significant returns was a
result of suits with positive returns canceling those with negative returns, the settlements were individually examined for abnormal
returns. Only 4 firms in the sample of 74 show significant abnormal returns during the two-day event interval (2 positive and 2
negative), which is fewer than would be expected randomly at the 90 percent confidence level. Given the lack of statistically
significant abnormal returns, no further analysis of lawsuit settlements is conducted.
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Conditional logit analysis indicates that Chinese-sourced equity joint ventures in highly polluting industries are deterred by relatively
stringent pollution regulation. This finding is consistent with the behavior described in the pollution haven hypothesis, though it
contradicts the notion that the pollution havens are created by industrial country investors. In contrast, equity joint ventures from
non-Chinese sources are actually attracted to provinces with more stringent environmental regulations, regardless of pollution-
intensity--the opposite of the pollution haven hypothesis. This attraction also holds for Chinese equity investment in low and medium
pollution-intenstive industries, though to a lesser extent. Even after accounting for the possibility of a nested decision, environmental
stringency still significantly attracts non-Chinese equity investment, while significantly deterring only Chinese equity investment in
highly pollution-intensive activities. In all specifications, corrections for the degree of state ownership reduce the size of the pollution
levy effects, but do not alter their effects or significance.
Stanley J. Feldman, Associate Professor of Finance at Bentley College, et al, 1996. “Does Improving a Firm’s Environmental
Management System and Environmental Performance Result in a Higher Stock Price?” Journal of Investing, (co-authored by Peter A.
Soyka, and Paul Ameer)
We have just completed a thorough evalu- ation of our ideas using real-world data on more than 300 of the largest public com-
panies in the U.S., and have produced results that validate our hypothesis. As suggested by financial theory, we have computed
changes in systematic risk for each firm over two time periods, and related these to a number of financial and environmental
variables using multiple regression analysis. We constructed our analysis to explain as much of the vari- ability in observed
systematic risk as pos- sible using factors suggested by finance theory and empirical observation. Using this approach, we were able
to isolate and quantify the effects of several environ- mental management and environmental performance measures that have both
practical and statistical significance. Our work suggests that environmental improvements such as those we have eval- uated might
lead to a substantial reduction in the perceived risk of a firm, with an accompanying increase in a public compa- ny’s stock price,
of perhaps five percent.
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Roger G. Noll, professor of economics emeritus at Stanford University and a Senior Fellow at the Stanford Institute for Economic
Policy Research, ’97, “Internationalizing Regulatory Reform” in “Comparative Disadvantages? Social Regulations and the Global
Economy” Ed. Pietro S. Nivola. Published by Brookings Institute Press, pp. 332-333
The international consequence of incentive-based environmental regulatory reforms is to reallocate production among nations in a
manner that reduces total social costs. These reforms reduce compliance costs for industries that need to control harmful pollutants. As
a result, the relative price of the products of these industries falls, and if their products are traded these industries gain a larger share of
the world market. In some cases, the principal effect is to substitute domestic production for exports that appeared attractive only
because they were produced in a less costly regulatory environment, and in other cases it is to increase exports of the industries that
experience lower regulatory compliance costs. In all cases, all prices and exchange rates will adjust so that some other industries
experience some compensating adjustment in net imports, and total trade can either rise or fall. But in all cases, the net effect is an
increase in world productivity and income as production moves to areas where the true social costs are lowest.
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Core prices, which exclude food and energy, were up 0.2%. Energy prices surged 4.4% during the month, the biggest rise
since November. That was driven by a 5.7% spike in gasoline prices during the month, also the biggest rise since
November. Consumer prices rose 4.2% compared with this time last year, the biggest rise since January. Julian Jessop at
Capital Economics said: "The latest US inflation data are not bad enough to panic the Fed into an early rate hike (not
while unemployment is soaring and the financial system is still creaking) but there is little good news here either. "Unless oil
prices drop back sharply soon, headline inflation is likely to remain uncomfortably high at around 4.0-4.5% until the
final months of the year."
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1NC Shell(1/2)
A. Uniqueness-- Bush and the Blue Dogs are holding the line on fiscal disc
Housing Wire,7/15/2008, “Bush: Congress Needs to Move on Housing Bill”, http://www.housingwire.com/2008/07/15/bush-
congress-needs-to-move-on-housing-bill/, BB
The largest source of Bush’s veto threat had centered around a proposed provision in the Senate that would add $3.9
billion in Community Development Block Grant funding to allow local governments to purchase foreclosed and
abandoned real estate for use as affordable housing. The House version of the package contains no such provision, and so-
called “Blue Dog” Democrats — a name given to a group of conservative Democrats in the House — have been strongly
opposed to the measure, as well.
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1NC Shell(2/2)
D. Impact- Economic Collapse leads to Nuclear War
Walter Russell Mead, Fellow for U.S. Foreign Policy at the Council on Foreign Relations, "Depending on the Kindness of
Strangers," New Perspectives Quarterly 9.3 (Summer 1992) pp. 28-30.
There is, or there should be, nothing surprising about the fix we are in. Everyone has known since the ‘70s that the U.S.
could no longer, single-handedly, manage the global economy. But, like Blanche Dubois, America’s leaders preferred to
ignore the unpleasant reality, and made no provisions to meet the coming challenge. There is something breathtakingly
casual in the way the American elite responds to its failures. The savings and loan debacle, the disintegration of our
inner cities, the budget deficit: Our public and private elites don’t care about them. Perhaps because they grew up in the
years when the U.S. faced no real economic challenges and knew no real limits, they don’t understand that failure has a
price. If so this new failure—the failure to develop an international system to hedge against the possibility of worldwide
depression—will open their eyes to their folly. Hundreds of millions—billions—of people around the world have pinned
their hopes on the international market economy. They and their leaders have embraced market principles—and drawn
closer to the West—because they believe our system can work for them. But what if it can’t? What if the global economy
stagnates—or even shrinks? In that case we will face a new period of international conflict: South against North, rich
against poor. Russia, China, India—these countries with their billions of people and their nuclear weapons will pose a
much greater danger to the world order than Germany and Japan did in the ‘30s.
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Bush and the Blue Dogs are holding the line on fiscal disc
Housing Wire,7/15/2008, “Bush: Congress Needs to Move on Housing Bill”, http://www.housingwire.com/2008/07/15/bush-
congress-needs-to-move-on-housing-bill/, BB
The largest source of Bush’s veto threat had centered around a proposed provision in the Senate that would add $3.9
billion in Community Development Block Grant funding to allow local governments to purchase foreclosed and
abandoned real estate for use as affordable housing. The House version of the package contains no such provision, and so-
called “Blue Dog” Democrats — a name given to a group of conservative Democrats in the House — have been strongly
opposed to the measure, as well.
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Obama Fiscal D
Obama is going to be fiscally responsible, Cooper proves
John Rodgers, City Paper staff writer, July 18, 2008, “Cooper says Obama best choice to reform America”
(http://www.nashvillecitypaper.com/news.php?viewStory=61509)
While both are Democrats and Harvard Law graduates, Jim Cooper and Barack Obama don’t share many similarities.
Cooper is a fiscally conservative congressman representing Nashville and Obama, by Cooper’s own admission, has “sterling
liberal credentials” hailing from Chicago, serving as Illinois senator and heading the Democratic ticket. Stylistically, Obama
packs arenas with his soaring oratory, inspiring millions. Conversely, Cooper employs a quick wit while training his spectacles on line
items in the federal budget in his ongoing quest to trim wasteful spending. Policy-wise, the gulf between the two is almost as wide,
especially on fiscal issues. For example, unlike Obama, Cooper thinks the likely Democratic presidential nominee’s Social Security
plan is “way too specific” and “way too premature,” his trade policies too “protectionist” and Obama’s opposition to expanded
offshore drilling “mistaken.” Yet, for all of their differences, the conservative fiscal hawk Cooper thinks a President Obama is the
only one who could fix Washington and its spendthrift ways. “Opposites attract in politics, like only Nixon could go to China,”
Cooper said this week, recalling the strident anti-communist president’s trip to China. “Well probably only a liberal and an African-
American could reform runaway entitlement program spending. Now there’s no guarantee of that, but I don’t see a Republican doing
it.” Cooper’s fiscal reputation and fervent support for Obama has even spurred some speculation that Cooper would be considered for
a position in an Obama administration, possibly as budget director — something Cooper for now is downplaying. Cooper thinks
Obama is the man to change a Washington and curb the influence of special interests who fervently protect spending
programs benefiting them in the federal budget. The two main entitlement programs Cooper often references — Medicare and
Social Security — need reform, he says, and Obama’s “liberal credentials” are what is needed to get the job done. “I’m pretty darn
conservative,” Cooper said. “But that’s why moderates and conservatives like me can enthusiastically support Barack.”
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LINK - EARMARKS
Earmarks are linked to Pork Barrel Spending
Huffington Post, The internet newspaper, June 18, 2008, “Bipartisanship Thrives -- At Least When it Comes to Earmarks”
(http://www.huffingtonpost.com/scott-bittle-and-jean-johnson/bipartisanship-thrives_b_107667.html)
Plus, you have to wonder just who Congressman Reyes sees as his "constituency." The U.S. is more than $9 trillion in debt, and
polls show that most Americans don't like earmarking . Americans nationwide are struggling with rising gas and food costs.
Communities across the country are suffering from the mortgage meltdown. Maybe the congressman thinks he should only focus on
Texans, but you really have to ask exactly how many Texans benefit from a nice, new, not-asked-for by the Defense Department
contract for Digital Fusion. Perhaps the best defense of earmarks is that all of them added up together don't make much of a
difference in the country's $3 trillion dollar budget. The best ballpark estimate is that this kind of pork-barrel spending adds
up to about $17 billion in 2008, and many budget hawks think that getting upset about them deflects attention from far more
serious fiscal problems. It is a pretty small piece of the pie, and maybe some of these earmarks do some good. Somewhere.
Unfortunately, every single one of them was paid for with red ink, and the very worst thing about them is the cynicism and pessimism
the practice engenders in the American public. Are elected officials oblivious to that? If they are wondering why public ratings for
Congress are so low, this is a clue. In an era when Congress is too divided to balance the budget , reform the country's broken
immigration system, craft a long-term energy policy, fix our mishmash of a health care system, or protect Social Security, there is still
one area of broad bipartisan agreement -- earmarks will live for yet another day.
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LINK - EARMARKS
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Snowball Link
In 1994 -- the last year Democrats controlled the appropriations process -- there were 4,126 earmarks totaling $26.6
billion. That dropped to 3,000 earmarks when the Republicans became the majority. Pledges of fiscal responsibility
became overshadowed by more and more earmarks, until the 2006 budget contained 15,500 earmarks totaling $64
billion.
As Malmstrom's Comptroller, I am required to align recommended spending with "military utility" as I provide
financial advice and decisions on where to use our scarce dollars in an effort to eke out the greatest return in
accomplishing the mission. Military utility means that if an item is capable of fulfilling its purpose for the military
mission, it doesn't need replacing. Instead, there are many other competing expenditures where we can use our
money to further advance our mission effectiveness and efficiency. No longer do we have the luxury of replacing or
upgrading based on color, scratches and faded material. In these times of leaner budgets, health, safety and mission
must drive our decisions.
SNOWBALL DOWNHILL: This "emergency" bill demonstrates how such measures can grow like a snowball rolling downhill
-even in a Republican Congress. After Bush presented his $92.2-billion request, Rep. Jeb Hensarling (R.-Tex.), a leading
member of conservative House Republican Study Committee (RSC), prepared an amendment that would have offset all $92.2
billion by cutting unobligated funds from fiscal 2006 appropriations. But the House Rules Committee, chaired by Rep. David
Dreier (R.-Calif.), refused to allow Hensarling to offer that amendment on the floor.Twenty-nine members of the RSC, led by
Rep. Mike Pence (R.-lnd.), then voted on the floor against Dreier's rule. It passed anyway, however, when 22 Democrats
crossed party lines to join with most Republicans to ensure passage of a bill without offsets. The Senate Appropriations
Committee, chaired by Sen. Thad Cochran (R.-Miss.), voted 27 to 1 to add more than $14 billion to the bill, sending the full
Senate a $106.5-billion version. (Sen. Judd Gregg (R.-N.H.) was the only committee member to dissent.) On the Senate floor,
the bill grew by another $3.5 billion, despite efforts by Sen. Tom Coburn (R.-Okla.) to force embarrassing rollcall votes on
pork-barrel earmarks.
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Snowball Link
Plan Increases funding opening the floodgates to an earmark strategy that
funds everyone.
Ronald D. Utt, Ph.D., is Herbert and Joyce Morgan Senior Research Fellow in the Thomas A. Roe Institute for Economic Policy
Studies at The Heritage Foundation, November 10, 2004 [
“Is Pork Barrel Spending Ready to Explode? The Anatomy of an Earmark”, Heritage Foundation]
The article also noted that “The cost of hiring Alcalde and Fay would be $5,000 per month, with an 18-
month recommended contract.” While the average American family might consider this a steep price, the
prospective arrangement’s payoff reveals what a bargain it is for the county. With their fees totaling $90,000
for a prospective federal grant of $3.5 million, Alcalde and Fay are, for all intents and purposes, selling
federal taxpayer money for just 2.6 cents on the dollar. Anyone who has suspected that Washington
places little value on taxpayers’ hard-earned dollars now has an idea of just how diminished that value is—
somewhat less than the market price for defaulted Argentine debt. How the Culpeper transaction unfolds
bears watching for several reasons. From the perspective of federal fiscal integrity, this new earmark strategy
could open the floodgates to me-too projects across the country that would otherwise be funded with local
resources. Just thirty miles down the road from Culpeper is the town of Fredericksburg, which is now in the
process of committing itself, and its budgetary resources, to a $6 million recreation complex with indoor and
outdoor swimming pools. Now apprised of Culpeper’s prospective earmark, could the elected officials in
Fredericksburg be faulted for ringing up a lobbyist of their own?
And in the not-too-distant future it is quite likely that the federal budget process will no longer take place in
the halls of Congress, as the Constitution requires, but in the dozens of offices of Washington’s top lobbyists
—largely driven by generous contracts between the firms and their clients.
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Link-Wind
Wind costs at least $15 Billion a year
Smart Money, 7/8, 2008, Igor Greenwald, Staff Writer, “Foreign Oil Cheaper Than Pickens Plan”,
http://www.smartmoney.com/invisiblehand/index.cfm?story=20080708-foreign-oil, BB
He proposes generating wind power to save the natural gas burned in our power plants and redirecting that gas into
compressed vehicle fuel. This looks simple in PowerPoint or Flash. In reality, a wholesale transition is so cumbersome that
$150-a-barrel oil has hardly budged it off the demonstration-project stage. Remote wind farms need expensive
transmission lines linking to cities — which are liable to cost some $200 billion, according to the self-described "Man with
the Plan." Compressed natural gas requires its own fuelling station network, as well as specially fitted and significantly more
expensive vehicles. Neither seems likely to spread without substantial federal tax breaks. The Pickens Plan says nothing of
the subsidy costs, but Dow Jones Newswires estimates $15 billion a year for the wind component of the project alone.
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Brian M. Riedl is Grover M. Hermann Fellow in Federal Budgetary Affairs in, and Alison Acosta Fraser is Director of, the Thomas
A. Roe Institute for Economic Policy Studies at The Heritage Foundation, 4/17/2006 [ “The Senate's Deadly Sin: Larding Up
Emergency Appropriations” Heritage Online]
President George W. Bush requested an emergency appropriation of $92 billion for operations in Iraq and Afghanistan and
another round of hurricane recovery. The House approved the request, but the Senate Appropriations Committee has loaded
the measure with $14 billion in new spending, most unrelated to national security or hurricane recovery. Still not satisfied,
Senators are now readying floor amendments to add as much as $10 billion more in spending, which would push the price tag
to $24 billion above the President’s request.[1] This new spending is tremendously irresponsible considering the state of the
budget. Congress has already boosted spending by 45 percent since 2001 to a post-war record of $23,760 per household.[2]
On top of that, the Senate started this year by adding $16 billion to the President’s discretionary budget request.[3] This is at a
time where the new Medicare prescription drug benefit is projected to cost over $1 trillion through 2016. Entitlement
programs’ liabilities, public debt, and other liabilities such as veterans’ and federal employee retirement costs already total
$375,000 for every full time worker in America. [4] The Senate’s actions show a clear disregard for this huge fiscal burden
Americans already face. The Senate should reject all additional spending proposals, strip all items not part of the President’s
request, and go one step further by identifying offsets to pay for the bill’s new spending. The President should draw a line in
the sand by promising to veto any supplemental that is either beyond the scope of his request or above its total level of
funding.
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Link – Perception
Failure to veto the plan will collapse Bush’s perception of fiscal restraint
Christian Science Monitor, Gail Russell Chaddock, staff writer, 10/4/2007, “GOP looks to reclaim fiscal responsibility
mantle”, http://www.csmonitor.com/2007/1004/p02s01-uspo.html, BB
Washington - With the new fiscal year under way and no spending bills completed, President Bush and Congress are heading
into a fight over fiscal responsibility that is likely to dominate politics on Capitol Hill until the end of the year. President
Bush's veto of a popular bill to provide health insurance for poor children, the S-CHIP program, on Wednesday marked a first
volley. The White House says the proposed bill is $30 billion more than what America can afford. Democrats say that the veto
is a sign that Mr. Bush and Republican lawmakers who refuse to back a veto override have the wrong priorities. "Today the
president showed the nation his true priorities: $700 billion for a war in Iraq, but no health care for low-income kids," said
House Democratic Caucus Chairman Rahm Emanuel (D) of Illinois, in a statement. But the 12 pending appropriations bills
for fiscal year 2008 – and a new war-funding request expected this fall – will test the credibility of both sides of the aisle.
For Republicans, battered by Bush's low approval ratings, the fall budget battles are a chance to show angry conservatives
that the GOP is getting back to a concern over a restraint in spending. "This marks the president's last chance to
reassert control over the budget process that's been allowed to flail along wildly for six years now," says Pete Sepp, a vice
president at the National Taxpayers Union in Alexandria, Va. "If this is an effort to reestablish credentials [with fiscal
conservatives], there is a lot more reestablishment to do beyond S-CHIP. The sincerity of this effort will be judged by
the number of vetoes."
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Link – Ag
Agriculture policies involve in pork barreling, Empirically Proven
Thomas A. Schatz, president of Congressional Pig Book Summary, and David E. Williams, vice president “2005 congressional
pig book summary”( The 2005 Congressional Pig Book Summary gives a snapshot of each appropriations bill and details 570 of the
juciest projects culled from the complete Pig Book)
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified by
CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money.
<<Every year appropriators and the United States Department of Agriculture (USDA) perform their little dance: USDA
requests very little funding for special research grants through the Cooperative State Research, Education and Extension
Service (CSREES) and appropriators add millions of dollars for their own pet projects. The fiscal 2005 budget is no different.
This tango with our tax dollars continued as USDA requested only $3 million while appropriators added $121 million for CSREES
projects, or 3,933 percent more than the budget request. As a result, the fiscal 2005 Agriculture Appropriations Act has something old,
something new, something borrowed, and something blue. Total agriculture pork in fiscal 2005 was $526.1 million, or 44 percent
more than the fiscal 2004 total of $365 million. The number of projects decreased by 1 percent, from 512 to 505.>>
99
Econ Generic
DDI 2008
Serrano
Link – Hydrogen
Hydrogen is expensive-requires $55 billion in subsidies
Environmental News Service, J.R. Pegg, Staff Writer, 7/18/08, http://www.ens-newswire.com/ens/jul2008/2008-07-18-10.asp
WASHINGTON, DC, July 18, 2008 (ENS) - It will take massive subsidies from the U.S. government to make hydrogen
fuel cell vehicles a significant part of the nation's transportation future, according to a National Research Council report
released Thursday. The study finds that even under a best-case scenario only about two million hydrogen fuel cell
vehicles will be on American roads by 2020, less than one percent of the nation's estimated total number of cars and
trucks. Achieving that goal would require the government to pump at least $55 billion in subsidies over the next 15
years to make hydrogen vehicles cost competitive with conventional cars and trucks, the report concluded. Current
government spending has equaled some $879 million since 2004.
100
Econ Generic
DDI 2008
Serrano
Link – Taxes
Pork Barrel projects are placed in Tax Bills
Hon. Paul Ryan, a representative in congress from the state of Wisconsin, June 8, 2006, HEARING
BEFORE THE COMMITTEE ON THE BUDGET HOUSE OF REPRESENTATIVES ONE HUNDRED NINTH CONGRESS
SECOND SESSION, (Serial No. 109–19)
The amount of pork-barrel spending included in the Federal budget continues to increase every year. According to Citizens
Against Government Waste (CAGW), the Federal Government spent $29 billion on 9,963 pork-barrel projects in Fiscal Year
2006 (FY 2006), an increase of 6.3% from 2005, and an increase of over 900% since 1991. Overall, the Federal Government
has spent $241 billion on pork-barrel projects between 1991 and 2005, an amount greater than two-thirds of our entire deficit
in FY 2005. This includes irresponsible spending on items such as the $50 million Rain Forest Museum in Iowa; $13.5 million to pay
for a program that helped finance the World Toilet Summit; and $1 million for the Waterfree Urinal Conservation Initiative. To make
matters worse, this total does not include earmarks placed in authorization bills or special-interest tax pork placed in tax
legislation. As an example, last year’s highway authorization bill contained approximately 6,371 earmarks, with a total cost of $25
billion. Many of these pork-barrel spending projects are quietly inserted into the conference reports of appropriations,
authorizing, and tax bills at the end of the process where there is little transparency and accountability. Not only do most
Members not have the ability to scrutinize these provisions at all, but even if wasteful spending items are identified at this stage,
Congress is unable to eliminate them using the amendment process. In fact, the only time that Members actually vote on these items is
during an up-or-down vote on the entire conference report, which includes spending for many essential government programs in
addition to the pork-barrel earmarks. In this situation, it is very difficult for any Member to vote against a bill that, as an overall
package may be quite meritorious, despite the inclusion of wasteful spending items. Unfortunately, the current tools at the President’s
disposal do not enable him to easily combat these wasteful spending items either. Even if the President identifies numerous pork-barrel
projects in an appropriations or authorizing bill, he is unlikely to use his veto power because it must be applied to the bill as a whole
and cannot be used to target individual items. This places the President in the same dilemma as Members of Congress. Does he veto an
entire spending bill because of a few items of pork when this action may jeopardize funding for our troops, for our homeland security
or for the education of our children? The President’s ability to propose the rescission of wasteful spending items under the
Impoundment Control Act of 1974 has been equally ineffective at eliminating wasteful spending items. The problem with the current
authority is that it does not include any mechanism to guarantee congressional consideration of a rescission request, and many
Presidential rescissions are simply ignored by the Congress. In fact, during the 1980’s, Congress routinely ignored President Reagan’s
rescission requests, failing to act on over $25 billion in requests that were made by the Administration. The historic ineffectiveness of
this tool has deterred Presidents from using it with any regularity
101
Econ Generic
DDI 2008
Serrano
Link-Nuclear
Nuclear power is expensive
Wall Street Journal, Rebecca Smith, Staff Writer, 5/12/08, “New Wave of Nuclear Plants Faces High Costs”,
http://online.wsj.com/article/SB121055252677483933.html?mod=googlenews_wsj, BB
A new generation of nuclear power plants is on the drawing boards in the U.S., but the projected cost is causing some
sticker shock: $5 billion to $12 billion a plant, double to quadruple earlier rough estimates. Nuclear power is regaining
favor as an alternative to other sources of power generation, such as coal-fired plants, which have fallen out of favor because
they are major polluters. But the high cost could lead to sharply higher electricity bills for consumers and inevitably
reignite debate about the nuclear industry's suitability to meet growing energy needs.
102
Econ Generic
DDI 2008
Serrano
Link-Alternative Energy
Spending on Alternative Energy Incentives will be perceived as wasteful
Peter Van Doren and Jerry Taylor, Editor of Regulation Magazine, Senior Fellow @ CATO Institute, 2/3/2006, “Stuck on
Empty”, Cato Institute, http://www.cato.org/pub_display.php?pub_id=5438)
President Bush began his energy riff by noting that since 2001, the federal government has spent nearly $10 billion on
"cleaner, cheaper, more reliable alternative energy sources." Perhaps, but what do we have to show for it? Nothing. The
market share for non-hydro renewable energy (presumably what the president is referring to when he talks about "reliable
alternative energy sources") has languished between 1 and 3 percent for decades, depending upon how you define your
terms. Still, past spending was offered as a rationale for a 22-percent increase in funding for "zero-emission" coal-fired
plants, solar and wind technologies, and nuclear energy. Fuel from corn, weeds, grass, mulch, trees, and whatever else the
combines can harvest were also given a tip of the president’s budgetary hat. For the most part, everybody who’s already
getting a federal energy handout will get a little larger sack of taxpayer loot if the president has his way.
103
Econ Generic
DDI 2008
Serrano
Link-Alternative Energy
104
Econ Generic
DDI 2008
Serrano
Link-Alternative Energy
Alternative Energy Incentives cost $3-4 Billion a year
Michael Vickerman, director of RENEW Wisconsin, a nonprofit organization headquartered in Madison that promotes clean energy
strategies for powering the state's economy in an environmentally responsible manner, 7/16/2008, “Michael Vickerman: It's crucial
for Congress to extend renewable energy incentives”, The Capital Times, http://www.madison.com/tct/opinion/column/296318, BB
Extending the renewable energy tax credits would cost U.S. taxpayers somewhere between $3 billion and $4 billion a
year, most of it going to wind generation. Some members of Congress consider that an unacceptably large expense. But
these are not permanent incentives. In the case of wind power installations, which have a book life between 20 and 30 years,
federal tax credits cover no more than 10 years of operation.
THE ENVIRONMENTAL Protection Agency (EPA) is legendary for tangling up businesses in red tape. Yet when it comes to
passing out millions in taxpayer money, it exhibits a casual, devil may-care attitude. In 1999 the agency passed out $1.3 billion of
its $7.5 billion budget in grants and contracts, often in complete disregard of the federal government's competitive bidding process. A
May 2001 report from the EPA'S Office of the Inspector General (QIG) discovered that the "EPA often awards non-competitive
assistance agreements to recipients based on the unsupported belief that those recipients were the only entities capable of
performing the work." That's bureaucratese for, "It gave the money to friends." To justify the awards, the envirocrats retreat to
the boilerplate retort that recipients were "uniquely qualified." In March 2002 the QIG returned to find that sweetheart deals accounted
for "1 out of every 5 dollars of the $1 billion" the EPA awarded in 1999 and 2000. Suspicious that the agency was using taxpayer
money to fund groups that were "uniquely qualified" to lobby for more money for the EPA, the Landmark Legal Foundation
took the agency to court in September 2000 to force it to disclose grant recipients. Some highlights of the $2 billion awarded
noncompetitively since 1993 included $47,000 to help the Seattle Mariners start a recycling program at their new $500 million
ballpark, $1,500 for academics to design a solid waste board game called the "Can Man Game," and $379 million to senior citizen
groups to recruit and pay senior citizens to work for the EPA. The agency even funds its ostensible enemies, providing $2 million in
grants to the National Association of Homebuilders and $4.9 million to the Natural Resources Defense Council, both of which have
sued the agency in the past.
105
Econ Generic
DDI 2008
Serrano
Link-Alternative Energy
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461
per capita ($257 million) and Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its
privileges: your money. <<The fiscal 2005 Energy and Water Appropriations Act overflowed with pork projects. Appropriators
funded nearly every creek, bay, and inlet from the coast of California to the shores of Florida. This year, the number of
projects swelled to 1,417, an increase of 130 percent from 617 in fiscal 2004. The total cost rose by 163 percent, from $714
million last year to $1.88 billion this year.>><<$51,132,000 for projects in the state of Senate Appropriations subcommittee member
Thad Cochran (R-Miss.) and the district of House appropriator Roger Wicker (R-Miss.), including: $36,693,000 for Yazoo River and
Basin projects; $3,750,000 for the Mississippi Environmental Infrastructure Program; $3,000,000 for the Mississippi Technology
Alliance Alternative Energy Enterprises Program; $1,500,000 for the Mississippi State University Biodiesel from Feedstock
Project; $1,060,000 for Pascagoula Harbor ($550,000 for operation and maintenance, and $510,000 for construction); and $100,000
for Okatibbee Lake. $43,813,000 for projects in the state of Senate appropriator Mary Landrieu (D-La.) and the district of House
appropriator David Vitter (R-La.), including: $11,450,000 for the J. Bennett Johnston Waterway ($9,000,000 for construction and
$2,450,000 for operation and maintenance. A January 9, 2000 Washington Post article stated that the waterway "still carries less than
0.1 percent of the commercial traffic on America's government-run river transport system — even though it receives a remarkable 3.4
percent of the system's federal funds." In 2003, the U.S. Army Corps of Engineers said the $2 billion worth of construction costs
won’t be justified until 2046); $2,000,000 for a sugar-based ethanol biorefinery at Louisiana State University; and $500,000 for
Livingston Parish alternative fuel plant construction.>>
106
Econ Generic
DDI 2008
Serrano
Link-Alternative Energy
107
Econ Generic
DDI 2008
Serrano
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money. <<As
the world continues to cope with the devastation caused by the tsunami in the Indian Ocean, Americans and their government
are generously providing hundreds of millions of dollars in relief. The dark side of foreign aid is the tidal wave of pork projects
that has been added to appropriations bills, money that could have been used to save lives instead of protecting the
incumbency of members of Congress. The number of projects decreased by 10 percent, from 20 in fiscal 2004 to 18 in fiscal
2005. But the cost of the pork increased by 5.4 percent, from $449.8 million to $473.9 million.>>
108
Econ Generic
DDI 2008
Serrano
Link – Military
Military policies involve in pork barreling, Empirically Proven
Thomas A. Schatz, president of Congressional Pig Book Summary, and David E. Williams, vice president “2005 congressional
pig book summary”( The 2005 Congressional Pig Book Summary gives a snapshot of each appropriations bill and details 570 of the
juciest projects culled from the complete Pig Book)
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money.
<<Defending the United States is the top priority of the federal government. With a deficit of $427 billion and the wars in Iraq
and Afghanistan costing more than $200 billion to date, congressional appropriators should be extremely careful with every
defense dollar. Unfortunately, appropriators have ignored the national interest and used the Defense Appropriations Act as
their own personal pork barrel. In fact, the number of projects jumped 25 percent from 2,077 in fiscal 2004 to 2,606 in fiscal
2005 while the total cost jumped 10.5 percent from $11.5 billion to $12.7 billion.>>
109
Econ Generic
DDI 2008
Serrano
Link – Military
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money.
<<$104,000,000 added for the Port Security Grant Program. The grants are provided "for projects to improve dockside and
perimeter security that is vital to securing our critical national seaports. These awards will contribute to important security
upgrades such as surveillance equipment, access controls to restricted areas, communications equipment, and the construction of new
command and control facilities." The department requested $46,000,000 for the program, but both the House and Senate
Appropriations Committees added funds. Despite appropriating more money, the House Appropriations Committee was "concerned
that port security grants made to independent terminal operators are not coordinated at the State, local port authority, or Captain of the
Port levels. Therefore, the Committee directs that…the coordination of all port security grants with the State, local port authority, and
the Captain of the Port, to ensure all vested parties are aware and that the limited resources are maximized." On September 13, 2004,
the Department of Homeland Security (DHS) announced the recipients of the fourth round of port security grants. Premier
Yachts, Inc., a private for-profit company with revenues of $40 million in 2003, was awarded three port security grants totaling
$208,100. Premier offers "fine dining and entertainment cruises" through its Odyssey, Mystic Blue, and Seadog Cruises in
Boston, Chicago, and Washington, D.C. Nothing like wining and dining at the taxpayers’ expense.>>
110
Econ Generic
DDI 2008
Serrano
Link – Military
Military Construction policies involve in pork barreling, Empirically Proven
Thomas A. Schatz, president of Congressional Pig Book Summary, and David E. Williams, vice president “2005 congressional
pig book summary”( The 2005 Congressional Pig Book Summary gives a snapshot of each appropriations bill and details 570 of the
juciest projects culled from the complete Pig Book)
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your
money.<<Appropriators paid a little more attention to the Pentagon’s priorities than their parochial pork in the fiscal 2005
Military Construction Appropriations Act, but taxpayers still paid for too many wasteful projects. Total earmarks decreased
by 28 percent, from 199 to 143, and the total amount of pork decreased by 5 percent, from $1 billion in fiscal 2004 to $974
million in fiscal 2005.>>
111
Econ Generic
DDI 2008
Serrano
Link education/health/science
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money. Rep.
Jeff Flake (R-Ariz.) got it right in a November 20, 2004 press release: "[E]very year, it’s the same thing — Congress passes
spending bills loaded with pork projects." The fiscal 2005 Labor/HHS Appropriations Act is the poster child for the appropriators’
excess. Of the 3,071 projects, 98 percent were added in conference; the total is a 57.4 percent increase over the 1,951 projects in fiscal
2004. The projects cost $1.69 billion, an increase of 79.6 percent over fiscal 2004’s $943 million<<$48,854,000 added in conference
in the state of Senate Labor/HHS Appropriations Subcommittee Ranking Member Tom Harkin (Diowa) and the district of House
appropriator Tom Latham (Riowa), including: $15,000,000 for the Iowa Department of Education to continue the Harkin Grant
Program (according to a September 4, 2004 press release, "Since 1998, Iowa schools have received a total of $101 million in
Harkin Grants, the only federal program of its kind"); $3,000,000 for the Iowa Department of Public Health to initiate the Harkin
Wellness Grant Program; $1,000,000 for the State Historical Society of Iowa in Des Moines, for the development of exhibits for the
World Food Prize; $235,000 for the University of Northern Iowa in Cedar Falls to support youth fitness and obesity efforts for rural
preschool children; $200,000 for the Iowa Games to continue the Lighten Up Iowa Program (the games are held by the Iowa Sports
Foundation [ISF], which claims on its website that "the ISF receives no state or government financial support."); and $100,000 for
National History Day for a history competition in Iowa.<<$17,140,000 added in conference for projects in the district of House
Labor/HHS Appropriations subcommittee member Anne Northup (R-Ky.), including: $14,500,000 for the University of Louisville
($10,250,000 for the Baxter III Research Building;>> $1,500,000 for Eckerd College in St. Petersburg in the district of House
Appropriations Committee Chairman Bill Young (R-Fla.): $1,000,000 to upgrade educational computing and technology and
$500,000 for leadership training programs. The programs are part of the college’s Leadership Development Institute and its
network associate, the Center for Creative Leadership. The institute has a long list of corporate participants (including JP Morgan,
Citibank, the U.S. Department of Energy, the Pentagon, and Tropicana), and the center "has delivered internationally acclaimed
programs to thousands of local, national, and international clients."<<$450,000 added in conference for the National Baseball Hall of
Fame and Museum in Cooperstown for educational outreach using baseball to teach students through distance learning technology in
the district of Rep. Sherwood Boehlert (R-N.Y.). Its website states that "baseball has connections to a variety of academic disciplines,
including mathematics, history, geography, technology, sociology, cultural diversity, character education, economics, women's
history." The hall of fame has received $1,569,000 since fiscal 2001 for educational outreach programs. The Baseball Hall of
Fame; a commission to examine steroid use among professional baseball players — looks like Congress put fiscal conservatism
on the bench and is throwing the taxpayers a bunch of junk.>>
112
Econ Generic
DDI 2008
Serrano
Link – development
Development policies involve in pork barreling, Empirically Proven
Thomas A. Schatz, president of Congressional Pig Book Summary, and David E. Williams, vice president “2005 congressional
pig book summary”( The 2005 Congressional Pig Book Summary gives a snapshot of each appropriations bill and details 570 of the
juciest projects culled from the complete Pig Book)
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money<<The
amount of money appropriators can waste through the VA/HUD Appropriations Act is as vast as their imaginations. Even
though the Department of Housing and Urban Development did not request any funding for specific projects in the Economic
Development Initiative Program, appropriators added 1,039 projects totaling $264 million. The pork list includes a swank
hotel in Coral Gables, Fla. and the Country Music Hall of Fame in Nashville, Tenn. After the bill had been greased, the total
number of projects increased by 16 percent over fiscal 2004, from 1,774 to 2,113. Total pork decreased by 11.9 percent, from $1.1
billion to $1 billion.>>
113
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As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money.<<
Following the trend of ever-growing appropriations bills, the fiscal 2005 Interior Appropriations Act was bursting with pork,
totaling $680 million, a 52 percent increase over last year’s $446 million. Total projects increased by 17.5 percent, from 473 in
fiscal 2004 to 556 in fiscal 2005.>>
114
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Link – Terrorism
Terrorism policies involve in pork barreling, Empirically Proven
Thomas A. Schatz, president of Congressional Pig Book Summary, and David E. Williams, vice president “2005 congressional
pig book summary”( The 2005 Congressional Pig Book Summary gives a snapshot of each appropriations bill and details 570 of the
juciest projects culled from the complete Pig Book)
As reality television shows proliferate, Congress continues to live in its own unreal world, believing there are no consequences to
a steady diet of pork fat. While programs like "Extreme Makeover" take a person, family, or home and transform them into
something new and beautiful, the latest round of appropriations bills demonstrates that Congress and the federal budget are in dire
need of a fiscal makeover. The federal government’s expanding waistline (a record $427 billion deficit) has resulted from too many
members of Congress believing that the United States Treasury is their own personal ATM. Our elected officials have let
themselves go whole hog while letting down every hard-working American taxpayer. The 2005 Congressional Pig Book is the latest
installment of Citizens Against Government Waste’s (CAGW) 15-year exposé of pork-barrel spending. This year’s list includes
$3,270,000 for the Capitol Visitor Center; $100,000 for the Tiger Woods Foundation; and $75,000 for Onondaga County for the
Greater Syracuse Sports Hall of Fame. Once again, Congress porked out at record levels. For fiscal 2005, appropriators stuffed
13,997 projects into the 13 appropriations bills, an increase of 31 percent over last year’s total of 10,656. In the last two years, the total
number of projects has increased by 49.5 percent. The cost of these projects in fiscal 2005 was $27.3 billion, or 19 percent more than
last year’s total of $22.9 billion. In fact, the total cost of pork has increased by 21 percent since fiscal 2003. Total pork identified
by CAGW since 1991 adds up to $212 billion. The top three increases in pork from fiscal 2004 to fiscal 2005 were: Homeland
Security from $423 million to $1.72 billion (306 percent); Energy and Water from $714 million to $1.88 billion (163 percent);
and Labor/HHS from $943 million to $1.7 billion (80 percent). Alaska again led the nation with $985 per capita ($646 million), or
30 times the national pork average of $33. The runners up were the District of Columbia with $461 per capita ($257 million) and
Hawaii with $454 per capita ($574 million). Senators have once again proven that membership has its privileges: your money.<<The
Departments of Commerce, Justice, and State execute key objectives in the war on terror — they hold together diplomatic
coalitions, monitor intelligence for future threats, guard borders, and bring terrorists to justice. But this appropriation also
funds agencies such as the National Oceanographic and Atmospheric Administration (NOAA). Such widespread options are
always tempting to appropriators. Even though the total number of projects increased by 30 percent, from 896 in fiscal 2004 to
1,168 in fiscal 2005, the amount of pork decreased by 3 percent, from $1.38 billion to $1.34 billion.>>
115
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116
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Prior to leaving for its August 1999 recess, the Senate approved a $7.6 billion "emergency" agricultural spending package that
will consume about half of the Congressional Budget Office (CBO) projected on-budget surplus for fiscal year (FY) 1999.
Although emergency appropriations do not count against budget caps, increased spending, regardless of how its classified,
eliminates the possibility of Congress keeping its other commitments, like protecting Social Security and passing tax cuts.
During the floor debate, Senator Richard Lugar (R-IN), chairman of the Agriculture, Nutrition and Forestry Committee, noted that
federal assistance payments for crop year 1999 will total $16.6 billion, excluding the "emergency" spending package. According to the
1997 Census of Agriculture, there are 1,911,824 farms, of which 685,029 receive federal monies, yielding an average subsidy of
$24,233 per farm. Nevertheless, the Senate voted to increase the agricultural assistance payments for this crop year by almost $8
billion, which will increase total payments to $24.2 billion, or $35,327 per farm. The Senate's generous allocation of taxpayer funds
was prompted by concern that the East Coast drought and falling commodity prices would lead to unacceptably low net farm incomes.
Confirmation came from the United States Department of Agriculture (USDA), which reported that unless emergency measures were
enacted, net farm income in 1999 would be $300 million lower than in 1998. If correct, it would mean that over half a million farms
subsidized by the federal government might earn an average of $438 less in 1999 than they had in 1998. Apparently, this "emergency"
justifies rescinding recent commitments to dedicate the first federal surplus in 30 years to saving Social Security, reducing taxes, and
paying down the national debt. Conclusion. The level of "emergency" spending approved by the Senate makes a mockery of its
recent passage of tax cuts for working Americans and threatens to do the same to congressional commitments to protect 100
percent of the surplus for Social Security. Although the CBO projected a $14 billion on-budget surplus available for allocation for
FY 2000, many Members of Congress have already indicated that all or most of an on-budget surplus will be used to fund the 13
regular appropriations bills. Consequently, any "emergency" spending will exhaust the on-budget surplus and eat into the Social
Security surplus. Americans are a generous people willing to assist their neighbors when necessary. Nonetheless, Congress should
not abuse taxpayers' generosity by extending "emergency" assistance to those who do not need it. Farm households with an
unsubsidized net taxable income of more that $50,000 per year do not need tax subsidies. Likewise, Americans who derive less than
25 percent of their household income from agriculture do not need federal subsidies to sustain their hobbies. Congress should restrict
emergency agricultural assistance to only those farmers who demonstrate a loss of income that threatens the survival of their family or
business. Middle-income taxpayers should not be forced to subsidize someone else's "lifestyle" choices or six-figure incomes.
117
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118
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119
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120
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121
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122
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Robert Rubin, former secretary of the Treasury, also stresses the psychological importance for financial markets of expectations
concerning the American budget position. If that deficit is viewed as likely to rise substantially, without any correction in sight,
confidence in America's financial instruments and currency could crack. The dollar could fall sharply as it did in 1971-73, 1978-79,
1985-87 and 1994-95. Market interest rates would rise substantially and the Federal Reserve would probably have to push them still higher to limit the
acceleration of inflation. These risks could be intensified by the change in leadership that will presumably take place at the Federal Reserve Board
in less than two years, inevitably creating new uncertainties after 25 years of superb stewardship by Mr Volcker and Alan Greenspan. A very hard landing is not
inevitable but neither is it unlikely.
123
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124
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Fiscal D K deficit
A loss of fiscal discipline balloons the deficit
Nancy Pelosi, speaker of the U.S. House of Representatives, June 8, 2008, “How to impose fiscal discipline”, The Washington
Times, lexis, BB
Fiscal responsibility is about more than balancing the nation's checkbook; it is about keeping our promises to our seniors and
our young people and promoting job creation and prosperity. Without fiscal discipline, America will pass on a legacy of
debt, fail to meet the demands the baby-boom generation will place on Social Security and Medicare, and undermine access to
capital, the lifeblood of new and growing businesses. In 2007, the new Democratic Congress began to restore our nation's
fiscal health while inheriting a fiscal challenge of historic proportions. President Bush and the Republican Congress turned
a $5.6 trillion, 10-year surplus inherited from the Clinton administration into a $3 trillion deficit. Thanks largely to the
cost of the war in Iraq and the Republican penchant for tax cuts for the wealthy, the deficit ballooned to $248 billion in
2006.
125
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126
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Fiscal D K Heg
127
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Although the ramifications of persistent and growing federal deficits are not often well-understood by the public, they will
become increasingly relevant in the future. Eventually, all those debts will have to be paid off, in the form of higher taxes or
spending cuts (unless, of course, the United States inflates its way out of debt or defaults—both unnerving, if far-fetched,
possibilities). The country may also face higher borrowing costs in the future, in the form of hikes in interest rates, which could
hamper the American economy and even induce a recession. If that's not bad enough, in just a few years, budget deficits will
grow even bigger as the government faces increasing costs associated with the retirement of the baby boomer generation. By
not preparing for this inevitability, the federal government is essentially doing what an individual in debt might do—that is, paying off
current obligations by taking out additional loans—but instead of mortgaging a house, the government is borrowing from future
economic growth. "By borrowing from abroad to finance U.S. investment, we our shortchanging our future standard of living," says
Maya MacGuineas, president of the Committee for a Responsible Federal Budget. "From a generational perspective, throwing a fiscal
party and passing along the bill is extremely unfair."
128
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129
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130
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131
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****Fiscal D Answers
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2AC (1/2)
1. Congress is overriding defenders of fiscal discipline
Belville News-Democrat, James Rosen, staff writer for McClatchy Newspapers 7/19/2008,“Senator who opposed expanding
global AIDS program vows to keep up pressure”,
Before voting 80-16 to pass the AIDS bill, the Senate defeated DeMint's amendments to cut its cost to $35 billion over
five years and to prohibit funds from being used for alleged "coercive abortion and forced sterilization" in China or
other countries.
133
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2AC (2/2)
7. Earmarks Happening now, there’s bipartisan love for it.
Huffington Post, The internet newspaper, June 18, 2008, “Bipartisanship Thrives -- At Least When it Comes to Earmarks”
(http://www.huffingtonpost.com/scott-bittle-and-jean-johnson/bipartisanship-thrives_b_107667.html)
Earmarks -- the Rasputin of Congressional budget politics - are back on the scene. If you don't remember your late tsarist
Russian history, Rasputin was the "mad monk" with scary eyes, decadent tastes and way too much influence over Tsarina
Alexandra. Eventually he was poisoned, shot, beaten, and finally drowned by a group of dissident Russian nobles. He drank
enough poison to kill multiple humans and had three bullets in his back, but he still led his killers on a chase through St.
Petersburg before they finally caught up with him, clubbed him and threw him in the Neva River. There were even rumors that
he sat up during his cremation. The Congressional earmark industry is proving equally hardy despite repeated attempts
to kill or at least weaken it, according to the Washington Post. The current House defense authorization bill contains
almost $10 billion dollars of earmarks according to figures compiled by Taxpayers for Common Sense. The Senate bill
hasn't been approved yet, but Senators Saxby Chambliss (R-GA), Chris Dodd (D-CT), Elizabeth Dole (R-NC) Carl Levin
(D-MI), Joe Lieberman (I-CT), Blanche Lincoln (D-AR), Mark Pryor (D-AR), and Mel Martinez (R-FL) are among those
listed as requesting earmarks. Okay, so we have members from the House and the Senate, from the liberal northeast
and the conservative south, men and the women, Democrats, Republicans, an Independent, and what can they finally
agree on - the ritual of slipping those tasty little earmarks into the defense budget. And they've agreed to do this when
the country is at war and faces a budget deficit approaching half a trillion dollars for this fiscal year.
134
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FISCAL D Low
135
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FISCAL D Low
Congress has spent billions on Veteran Entitlement, Emergency Relief, and
Unemployment
Gail Russell Chaddock, Staff Writer of the Christian Science Monitor, 6/30/08, “Congress's spending goes unchecked, with more
likely”, Christian Science Monitor, http://www.csmonitor.com/2008/0630/p25s01-uspo.html , BB
Washington - Before leaving town last week, Congress wrapped up a $162 billion war-funding bill and expanded
America's entitlement system by giving veterans the biggest boost in college benefits since the World War II GI bill.
Lawmakers also added a 13-week extension to unemployment benefits and approved $2.7 billion in emergency relief for
the storm-lashed Midwest. Despite commitments to fiscal discipline on both sides of the aisle, none of it is paid for – at
least not by today's taxpayers. "There is absolutely no appetite to make hard choices," says Robert Bixby, executive
director of the Concord Coalition, citing the war-funding bill. "There's never been any attempt to pay for the war, and now
that's being used to expand a major entitlement program for veterans, which might be a good idea, but we ought to pay
for it."
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FISCAL D Low
Bush is irresponsible, low fiscal discipline and is corrupt. Pork barrels
everything?
Richard A. Viguerie, a conservative figure head and writer in American politics. He is the current chairman of conservativehq.com,
August 9, 2006, “Conservatives Betrayed: How George W. Bush and Other Big Government Republicans Hijacked the Conservative
Cause- pages 6,7)
137
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FISCAL D Low
CARD CONTINUED FROM
Richard A. Viguerie, a conservative figure head and writer in American politics. He is the current chairman of conservativehq.com,
August 9, 2006, “Conservatives Betrayed: How George W. Bush and Other Big Government Republicans Hijacked the Conservative
Cause- pages 6,7)
138
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NO SPILLOVER – EARMARKS
Earmarks -- the Rasputin of Congressional budget politics - are back on the scene. If you don't remember your late tsarist Russian
history, Rasputin was the "mad monk" with scary eyes, decadent tastes and way too much influence over Tsarina Alexandra.
Eventually he was poisoned, shot, beaten, and finally drowned by a group of dissident Russian nobles. He drank enough poison to kill
multiple humans and had three bullets in his back, but he still led his killers on a chase through St. Petersburg before they finally
caught up with him, clubbed him and threw him in the Neva River. There were even rumors that he sat up during his cremation. The
Congressional earmark industry is proving equally hardy despite repeated attempts to kill or at least weaken it, according to
the Washington Post. The current House defense authorization bill contains almost $10 billion dollars of earmarks according
to figures compiled by Taxpayers for Common Sense. The Senate bill hasn't been approved yet, but Senators Saxby Chambliss
(R-GA), Chris Dodd (D-CT), Elizabeth Dole (R-NC) Carl Levin (D-MI), Joe Lieberman (I-CT), Blanche Lincoln (D-AR), Mark Pryor
(D-AR), and Mel Martinez (R-FL) are among those listed as requesting earmarks. Okay, so we have members from the House
and the Senate, from the liberal northeast and the conservative south, men and the women, Democrats, Republicans, an
Independent, and what can they finally agree on - the ritual of slipping those tasty little earmarks into the defense budget. And
they've agreed to do this when the country is at war and faces a budget deficit approaching half a trillion dollars for this fiscal
year.
139
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No increase in money
Alternative Energy can funded without an increase
States New Service 6/23/2008, “KIRK/BIGGERT: U.S. "MOON SHOT" PROGRAM TO GET OFF FOREIGN OIL "APOLLO
ENERGY INDEPENDENCE ACT" ON SCALE OF NASA'S MOST SUCCESSFUL PROGRAM TO LOWER GAS PRICES,
BOOST ALTERNATIVE ENERGIES AND IMPROVE ENERGY EFFICIENCY”, lexis
With Chicagoland leading the nation in gas prices, U.S. Representatives Mark Kirk and Judy Biggert joined with
environmental, business and research leaders today to announce new legislation dramatically boosting the federal
government's commitment to energy independence. With the backdrop of Chicago's premier space museum, the Adler
Planetarium, the legislation is modeled on NASA's $20 billion effort to land an American on the moon. The "Apollo Energy
Independence Act" establishes long-term market incentives to spur breakthroughs for the development and deployment
of alternative energies, vehicles and fuel. Increases in support for alternative energy are offset by spending reductions in
earmark and subsidy programs to ensure the bill does not require additional borrowing or taxes.
140
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The problem is simple and depressingly familiar. This year, federal spending will exceed federal revenue by more than
$400 billion. Given the weak state of the economy, the deficit will get worse before it gets better. Actually, it may never
get better, because the current shortfall coincides with the start of the most dreaded fiscal event of all time: the
retirement of the Baby Boomers, who will soon consume eye-popping amounts in Social Security and Medicare. The
latest proof came when McCain unveiled his economic plan, in which he vows to eliminate the deficit in four years. His
plan to balance the budget is simple: He plans to balance the budget. Exactly which programs he will trim to reach that
goal are anyone's guess. For someone with a reputation as a fearless foe of congressional earmarks and pork-barrel waste,
McCain is amazingly timid in taking on the rest of the budget. About his only specific proposal is a one-year freeze in those
discretionary programs that don't involve defense or veterans. McCain doesn't say how much that would save, but it
wouldn't be a lot. Those expenditures amount to only 17 percent of all federal outlays. Eighty-three percent of the
budget would keep on growing. After a year, so would the other 17 percent. He vows to follow up with "comprehensive
spending controls." But promising to control spending in general means promising to control nothing in particular.
Just because voters will go along with a vague limit on total outlays doesn't mean they are willing to surrender funds
going to them or their favorite causes. It's one thing to inform a toddler that he shouldn't eat too much candy. It's
another to take the Tootsie Roll Pop out of his hand. The Republican standard-bearer, however, acts as though the task will
be easy. Among the methods offered in this plan: "Eliminate broken programs. The federal government itself admits that one in
five programs do not perform." How about naming one? How about promising to pound a stake through its heart? When it
comes to spending, though, Obama is even worse. The National Taxpayers Union Foundation added up all the promises
made by the two candidates and found that McCain's would cost taxpayers an extra $68 billion a year. Obama's add up
to $344 billion a year. The Illinois senator's pledge to get tough on unnecessary expenditures is as solid as cotton candy.
Among his vows is to "slash earmarks to no greater than what they were in 2001," but earmarks make up less than 2
percent of the budget. Trying to restore fiscal discipline by cutting earmarks is like trying to lose weight by adopting an
exercise program for your left index finger. Obama claims he'll pay for all his new spending with new revenues and
spending cuts. But like McCain, he has been hazy on the details. And it will be far easier for him to get Congress to approve
new spending than to enact the measures needed to pay for it. Unless Obama is willing to take on his own party with the veto
pen, we should expect four more years of irresponsible budgeting. His only defense is that he would not have to make up
as much lost revenue as his rival. The Tax Policy Center says his tax plan would cut federal receipts by $2.7 trillion over the
next decade, compared with $3.6 trillion for McCain. The details differ, but the basic picture is the same regardless of who
wins: Washington will spend more, red ink will roll down like a mighty river, and we as a nation will continue to dodge the
critical choices we face.
After spending his first two and a half years in the Senate blasting the Bush administration for its irresponsible budget policies, Sen.
Barack Obama has been busy devising his own fiscal train wreck. First came the low-ball estimate for his universal health-
insurance proposal, the annual cost he calculated to be between $50 billion and $65 billion. Mr. Obama said he could pay for
his plan by reinstating Clinton-era income-tax rates (20 percent on capital gains and 39.6 percent on salary and dividend income)
on those earning more than $250,000 a year. Mr. Obama's middle-class tax proposal offers no relief for the alternative
minimum tax, which threatens to cost taxpayers (most of whom are in the middle- and upper-middle-class ranges) more than $1
trillion over the next 10 years. Yet he clearly intends to cancel those pending tax increases, although his plan fails to provide a
dime toward that end. Mr. Obama's fiscal policy doesn't add up.
141
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142
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143
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Serrano
Military spending is on the chopping block; the plan will trade off with nuclear
subs, F-22s, and space weapons.
Richard Sammon, Senior Associate Editor at the Kiplinger Business Resource Center 6/24/08
http://www.kiplinger.com/businessresource/forecast/archive/No_More_Big_Spending_Hikes_080624.html
While either McCain or Obama will look for savings, their priorities are different. The missile defense program would be
trimmed if Obama wins, less so under McCain, although he, too, would give it more scrutiny than has been the case with the
Bush administration. Roughly $8 billion is allocated each year for research and development. Initial construction and
installation of antimissile silos and radars has started, but the project is rife with engineering complexities and also political
considerations about where segments ultimately will be placed, especially in Europe. The missile defense budget will be a
prime target for freeing up some funds for other purposes.
Also on the chopping block, although neither McCain nor Obama has gone into specifics, are nuclear subs, next-generation
Navy surface ships, plus the F-22 and Joint Strike Fighter jet programs. They'll be trimmed in scope and multiyear
acquisition levels. Another area that will come under review is research into potential space-based defense weapons,
such as space-based lasers.
We must control our spending in order to prevent cuts on the military, which
would be devastating and embolden terrorists.
Jim Saxton, Representative from New Jersey. 7/14/08 Shortchanging our defenses over budget problems
creates more problems. http://thehill.com/op-eds/shortchanging-our-defenses-over-budget-problems-
creates-more-problems-2008-07-14.html
Finally, we must continue to find ways to control mandatory spending. Increases in mandatory spending, as well as our
necessary commitments to Medicare and Social Security, are squeezing our discretionary accounts, including defense. The
projections are staggering. Between 2008 and 2018, mandatory spending is projected to jump from $1.6 trillion to $2.7 trillion,
or 68.8 percent.
Hormats is right. Like generations before us, we must face the fiscal challenges of today. We must dismiss the false belief
that raising taxes and cutting military spending will solve problems. In the long term, they weaken the nation. Our
enemies are highly motivated and capable; we must continue to invest in a strong military to meet their threat.
We must find ways to increase the international partnership in the war on terror. Most importantly Congress must
control mandatory spending. If we have the courage and conviction to follow this path, our nation will stay strong and
continue to prosper.
144
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Serrano
During Exercise Northern Edge 2006 in Alaska in early June, the F-22 proved its mettle against as many as 40 "enemy
aircraft" during simulated battles. The Raptor achieved a 108-to-zero kill ratio at that exercise. But the capabilities of the
F-22 go beyond what it can do. It is also able to help other aircraft do better.
"When you are outnumbered on the battlefield -- the F-22 helps the F-18 and the F-15s increase their performance,"
General Lewis said. "It gives them more situational awareness, and allows them to get their expenditures because you can't
kill all these airplanes with just the weapons aboard the F-22. It takes the F-15's and F-18's weapons. It was very successful, (in
its) ability to get everybody to integrate."
One role the F-22 is particularly good at, General Lewis said, is establishing air dominance. This means making airspace
above an area safe for other aircraft to come in do their mission. The F-22 is superb at performing air-to-air combat and
eliminating surface-to-air missiles. In fact, the F-22 is capable of dealing with both of those threats at the same time.
"Because of its stealth and its speed, it is unique in that category, in that it allows us to establish air dominance," General
Lewis said. "It goes after the aircraft, the SAMs, and the cruise missiles. And it can do it all at the same time. The legacy
(aircraft) can do any one of those, kind of okay, but they can't survive in contested airspace. They can first try to take care of
the aircraft, then they can work on the SAMs. But the F-22 has demonstrated, last year in (final operational testing and
evaluation), that we can do that simultaneously."
Of particular interest to the Air Force is the F-22's ability to deal with "double digit SAMs." A double digit SAM, Air
Force parlance for Russian-designed mobile surface-to-air missiles, is so named for the two digit designator in their NATO
reporting name. The Russian-designed S-300P Angara, for instance, is designated "SA-10" by NATO countries. The "S-
300PMU Favorit" is designated the "SA-20." Both Russia and China manufacture these weapons systems, and they are
readily available on the market. These weapons are highly mobile and pose a threat to Air Force legacy aircraft such as the F-
15 and F-16.
145
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Military spending is on the chopping block; the plan will trade off with nuclear
subs, F-22s, and space weapons.
Richard Sammon, Senior Associate Editor at the Kiplinger Business Resource Center 6/24/08
http://www.kiplinger.com/businessresource/forecast/archive/No_More_Big_Spending_Hikes_080624.html
While either McCain or Obama will look for savings, their priorities are different. The missile defense program would be
trimmed if Obama wins, less so under McCain, although he, too, would give it more scrutiny than has been the case with the
Bush administration. Roughly $8 billion is allocated each year for research and development. Initial construction and
installation of antimissile silos and radars has started, but the project is rife with engineering complexities and also political
considerations about where segments ultimately will be placed, especially in Europe. The missile defense budget will be a
prime target for freeing up some funds for other purposes.
Also on the chopping block, although neither McCain nor Obama has gone into specifics, are nuclear subs, next-generation
Navy surface ships, plus the F-22 and Joint Strike Fighter jet programs. They'll be trimmed in scope and multiyear
acquisition levels. Another area that will come under review is research into potential space-based defense weapons,
such as space-based lasers.
We must control our spending in order to prevent cuts on the military, which
would be devastating and embolden terrorists.
Jim Saxton, Representative from New Jersey. 7/14/08 Shortchanging our defenses over budget problems
creates more problems. http://thehill.com/op-eds/shortchanging-our-defenses-over-budget-problems-
creates-more-problems-2008-07-14.html
Finally, we must continue to find ways to control mandatory spending. Increases in mandatory spending, as well as our
necessary commitments to Medicare and Social Security, are squeezing our discretionary accounts, including defense. The
projections are staggering. Between 2008 and 2018, mandatory spending is projected to jump from $1.6 trillion to $2.7 trillion,
or 68.8 percent.
Hormats is right. Like generations before us, we must face the fiscal challenges of today. We must dismiss the false belief
that raising taxes and cutting military spending will solve problems. In the long term, they weaken the nation. Our
enemies are highly motivated and capable; we must continue to invest in a strong military to meet their threat.
We must find ways to increase the international partnership in the war on terror. Most importantly Congress must
control mandatory spending. If we have the courage and conviction to follow this path, our nation will stay strong and
continue to prosper.
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The missile defense system is key to prevent a war with Iran and promote
stability in the Middle East.
Riki Ellison, President and Founder of Missile Defense Advocacy Allience. 7/10/08 “Clear and Present
Danger” http://www.missiledefenseadvocacy.org/news.aspx?news_id=1242
Iran's firing of 9 ballistic missiles yesterday and more missiles today as an escalatory response to military exercises and
political rhetoric is unequivocally a Clear and Present Danger to the United States of America and its allies in the
Middle East. Our nation and the international community need real options to forgo preemptive military action and or
direct escalatory military action by the United States and its allies that would most likely lead to war with Iran.
Currently, the U.S. has fully operational, deployed missile defense systems that can stabilize the region, whereby
strengthening the deterrent and decreasing the threat by non-lethal means without escalating an already dynamic
situation. Missile defense in this situation can stabilize and offer valuable positioning for diplomatic efforts to ease down
the intensity and work for a solution.
Currently to bring to bear in the Middle East region, the United States Army has multiple PAC -3 battalions and the United
States Navy has 15 missile defense equipped Aegis Ships, equipped with tracking radars and missile defense interceptors of
Standard Missile-3 and Standard Missile-2s. The country of Israel has deployed Arrow and PAC-3 missile defense systems.
Though some of these systems are already in the region and more should follow, the inventory of interceptors is very limited.
Having these systems in the Middle East region cannot guarantee full protection from Iran's missiles but it can offer more
deterrence and some limited protection to our American and Allied citizens as well as armed forces in the region.
This demonstrated use of multiple launches on the world stage coupled with Iran's nuclear intentions and their stated political
intent amplifies and validates the reasoning of why our nation through 11 Congresses and 4 United States Presidents have fully
supported and funded the development, deployment and continued evolution of missile defense. It is the reason why the 26
countries of NATO have fully endorsed missile defense and the third site in Europe. It is the reason why the country of Israel
has developed and deployed missile defense systems and other countries in the Middle East region have reached out to the
United States for missile defense. It validates the Czech Republic agreement on missile defense earlier this week, and it adds to
the necessity of protecting Europe from ballistic missiles.
It is of vital importance to global peace and security for the United States and the international community to continue
to develop and deploy future missile defenses for the threat our world faces today and in the future.
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Increased instability in the Middle East will quickly break down to chaos and
plunge the world into war.
Cetron, Marvin J.; Davies, Owen. Writers for The Futurist. 9/1/07 “Worst-case scenario: the Middle East:
current trends indicate that a Middle Eastern war might last for decades. Here is an overview of the most critical
potential impacts”
There is more to come. After all, this is the most volatile region in the world. Sunnis and Shi'ites have carried on an
intermittent religious and ethnic power struggle there for some 1,400 years. Worse, after World War I the victors
deliberately broke the Middle East into artificial states that could never be stable, and thus could not easily be united
under the banner of Pan Arabism. As Sesh Velamoor of the Foundation For the Future points out, if the West is unhappy with
conditions in the Middle East, it has itself largely to blame. But the important point is that mere instability soon could
break down into general chaos.
Here is one possible course of events: Hezbollah's current protests in Lebanon and the government's reactive crackdown may
result in a larger war. Saudi Arabia could intervene here, too, as it has been actively supporting the government of Prime
Minister Fouad Siniora. At the same time, Hezbollah and Hamas, in the Occupied Territories, will be encouraged to expand
their struggle against Israel. In Egypt, the banned but still powerful Muslim Brotherhood would be encouraged to resume
the battle for a fundamentalist Islamic state, endangering Western access to the Suez Canal. Extremists from distant
reaches of the Muslim world will flood into the Middle East. Saudi Arabia, a land of Sunni Arabs, and Iran, the home of
Persian Shi'ites, already on opposite sides in Iraq, might expand their conflict to do battle across the Persian Gulf, with fallout
in Kuwait, Qatar, and the United Arab Emirates. One way or another, it all spins out of control. Everyone in the Middle
East fights everyone else for decades.
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We must control our spending in order to prevent cuts on the military, which
would be devastating and embolden terrorists.
Jim Saxton, Representative from New Jersey. 7/14/08 Shortchanging our defenses over budget problems
creates more problems. http://thehill.com/op-eds/shortchanging-our-defenses-over-budget-problems-
creates-more-problems-2008-07-14.html
Finally, we must continue to find ways to control mandatory spending. Increases in mandatory spending, as well as our
necessary commitments to Medicare and Social Security, are squeezing our discretionary accounts, including defense. The
projections are staggering. Between 2008 and 2018, mandatory spending is projected to jump from $1.6 trillion to $2.7 trillion,
or 68.8 percent.
Hormats is right. Like generations before us, we must face the fiscal challenges of today. We must dismiss the false belief
that raising taxes and cutting military spending will solve problems. In the long term, they weaken the nation. Our
enemies are highly motivated and capable; we must continue to invest in a strong military to meet their threat.
We must find ways to increase the international partnership in the war on terror. Most importantly Congress must
control mandatory spending. If we have the courage and conviction to follow this path, our nation will stay strong and
continue to prosper.
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Chopping block
Funding for F-22s will be reallocated towards funding for new renewable
technology companies
Donald E. Vandergriff, US Army Major, 6/18/08, “Chuck Spinney on Obama’s Politics of Change”,
http://donvandergriff.wordpress.com/2008/07/18/chuck-spinney-on-obamas-politics-of-change-afghanistan-gores-transformative-
vision/
Meanwhile, to make matters even worse, Obama just knee-jerked and endorsed Gore’s absurd call to end US
dependency on carbon for electrical power (i.e., coal, oil, gas) in 10 years by throwing money at the renewable energy
programs in a crash program patterned after John F. Kennedy’s Apollo program in the so-called Moon race — which,
by the way, is a ridiculous analogy. Going to the moon was a far simpler, far more narrow, engineering problem which
involved only a comparatively miniscule investment in production/infrastructure facilities. Repoweringall the carbon-fired
power plants withsolar, wind, and water generators in the United States would be a gargantuan effort requiring development of
new technologies, particularly energy storage technologies, and massive investments in all sorts of infrastructure. The only
near term energy technology that could be used on such a massive scale is nuclear power, and even that would be impossible to
do in ten years, particularly given the problems of storing radioactive waste, location, and safety. Bear in mindthat Gore’s
colossal feat would take place in a country that can not muster the political will to solve the comparatively simple problem of
rebuilding New Orleans.
Of course, Gore packaged his transformative vision under the umbrella of national security (the politics of fear, again)
Gore’s proposal, if it ever gets traction, will result in a colossal boondoggle for same hi-tech companies that now take
20+ years to move an airplane like F-22 or a weapon system that doesn’t work like missile defense from R&D to
anything like operational status.
Now I am all for developing solar and wind technologies, etc, but a transformation of the nation’s entire electrical
production capabilities in 10 years is preposterous on its face.
Gore’s top-down (I know what is best) proposal, which Obama (who claims to be a bottom-up politician) endorsed, is really a
formula for looting the taxpayer, particularly when you consider that the techno-defense giants, like Boeing & Lockheed, are
certain cash in on the Gore’s golden cornucopia, should it occur. The horrors of the ethanol scam will be welcome by
comparison.
Surely, high speed rail, mandating better fuel economy in cars, subsidizing more insulation in houses and office buildings,
wearing sweaters, subsidizing population movements from suburbs to cities, and other proven technologies would yield far
larger energy benefits in the short term.
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Chopping block
Earlier this month, the Army stepped up to the plate and asked for $4 billion more than the $141 billion it is slated to receive in
2009. The Marines asked for $3 billion more than their proposed ration of $25 billion. The Navy asked for $5 billion to be
added to its bottom line of $124 billion. But all those sums added together don't equal the — hold your breath, dear
taxpayer — $19 billion that the Air Force wants over and above its $144 billion request.
A quick flip through the 11-page list turns up a $13 million "requirement" for dorm furniture — an item that may justify the
other services dubbing it the "Chair Force" because so many of its people are behind desks. In response to questions from
TIME on the list's contents and cost, the Air Force issued a statement Thursday saying the list contains only its "most
critical needs." Lieutenant General Dave Deptula, the Air Force's top intel officer, says his service's needs "are severe
and getting worse," and that the list reflects the gap "between where we are and where we need to be."
Highlighting the huge request is a proposal by the Air Force to trump its civilian leaders and buy twice as many F-22
jets as now planned, while hyping the threats to justify the buy. China and India are, in the Air Force's eyes, the 21st
century equivalent of the Soviet Union, requiring billions in new aircraft that even a hawkish Republican President doesn't
think are needed. More critically, every dollar spent on supersonic aircraft is a dollar that isn't spent on the kind of troops and
materiel needed to wage the two irregular wars the nation is now fighting, and which many experts predict will be the kinds of
wars fought for the next generation or two.
The military is hardly starving. The Pentagon's proposed 2009 Defense Budget is twice the size of the budget President Bush
inherited from Bill Clinton. Even without the nearly $200 billion for the wars, the $515 billion tab is on par with the defense
budgets of World War II. "Today, free-flowing funding has fundamentally undermined all budget discipline in the Pentagon,"
says Gordon Adams, who oversaw military spending from a senior post in the Clinton White House.
Take the fight over the F-22. The Pentagon has declared it wants to cap procurement at 183 planes, for $65 billion. But
the Air Force wants 380 of them. "We think that [183] is the wrong number," General Bruce Carlson, the Air Force's
top weapons buyer, told reporters at a Feb. 13 industry gathering. "We're committed to funding 380," he added. "We're
building a program right now to do that." Defense Secretary Robert Gates called Air Force Secretary Michael Wynne after
reading Carlson's comments in Aerospace Daily, a trade paper, and told him to remind Carlson who's the boss. (Wynne did, and
issued a statement saying the Air Force "wholeheartedly supports" the Administration's proposal.)
Days earlier, Carlson said that today's U.S. Air Force "simply cannot fight and win against the fleet of airplanes that
have been developed and are flying in India, China, and so forth," a claim questioned by many experts. But his view has
been reinforced by the companies employing 25,000 workers in 44 states building the F-22 — the prime contractor is
aerospace giant Lockheed Martin — and their allies in Congress. That is what is so insidious about these lists: once
Congress gets a hold of them, they're used as pile drivers to pound extra billions into the Pentagon budget, generally by
lawmakers seeking to fund jobs in their districts.
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Chopping block
Sales of F-22 Jets have become political spending issues
Leslie Wayne, staff writer, 9/12/06, International Herald Tribune, “Washington Battles over costly F-22 Jet”,
http://www.iht.com/articles/2006/09/11/business/plane.php?page=1
The F-22 fighter jet, now being delivered to Air Force bases around the country, is the Maserati of the skies. Intended to take
on a military opponent that no longer exists - the Soviet Union - it has a cruising speed of Mach 2, twice the speed of sound; its
top speed is a Pentagon secret. And with radar-evading stealth technology, it can attack its enemies almost invisibly.
But the F-22's only real battles these days are taking place in the corridors of power in Washington. F-22 supporters
have been taking on the Bush administration and Washington budget-cutters who want to limit production to 183
planes because the cost to taxpayers has risen to $350 million per plane.
But the Air Force and Lockheed Martin, the plane's maker, arguing that the plane provides global aerial dominance, say they
need to build more F-22s, potentially hundreds more. And that is why they have gone around their ostensible bosses in the
Pentagon and White House to push Congress to open the door so they can sell more of them.
One measure, passed by the House in July on a voice vote after only 11 minutes of discussion, would end a ban on F-22 sales
abroad.
The ban was put in place to prevent sensitive F-22 technology from leaking to other countries. But F-22 backers are hoping to
make the program's $65 billion overall cost more palatable by spreading its costs over more planes and more countries.
The other legislation, passed by the Senate 70 to 28 over the strong objections of the Armed Services Committee,
directed the Pentagon to enter into a multiyear contract to extend the F-22's production run beyond its current 2011
termination date and reduce annual congressional oversight. Negotiating committees will take up the two measures
later this month.
"Congress is firmly in the Air Force corner on this one," said Loren Thompson, a military expert at the Lexington
Institute. "My best judgment is, the Air Force will get all the F-22s it wants. You are talking about an Air Force
dominated by fighter pilots, and past experience shows that if a military service really wants a weapon, it gets it."
Both measures provide a bird's eye view of what Washington calls "the Iron Triangle" - a politically powerful combination of
military contractors and their allies inside the Pentagon and in Congress. The Senate language in the multiyear contract
measure, for instance, is word-for-word identical to a proposal drafted by the lobbyist for Lockheed.
"Please vote 'yes' on the proposed Chambliss Amendment," said an e-mail circulated by Lockheed to Senate members before
the measure had even been introduced by Senator Saxby Chambliss, the Georgia Republican whose district includes an F-22
assembly plant.
The House effort to lift the ban on foreign sales was offered by Representative Kay Granger, the Texas Republican whose
district includes the Lockheed factory that makes the F-22's midsection and employs 2,640 people.
The Air Force, which has made the F- 22 its top priority, has taken possession of 74 F-22s, with six others now in production.
Lockheed plans to make 20 to 25 a year.
The F-22 was conceived two decades ago to take on the Soviets. Even though that threat disappeared, the F-22 program
dragged on for years as the plane's design was altered to take advantage of the latest technologies. As result, the number of
planes the Pentagon could afford dropped and the price tag rose.
The F-22 has also suffered from a number of embarrassing glitches. Earlier this year, an F-22 pilot got trapped in the jet and
had to be rescued from his cockpit with chainsaws. Landing gear failed in another instance, causing the aircraft to fall on its
nose. Structural cracks have also been reported.
Originally, the Air Force wanted 750 F-22s. But while the Bush Administration and Donald Rumsfeld, the Defense
Secretary, say that cost constraints have limited the program to 183 planes, the Air Force has said it needs 381, or more.
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Airpower Impact
F-22s are crucial for the US to maintain control over the airways
Loren B. Thompson, Ph.D, 7/16/08, Heritage Foundation, Lexington Institute Issue Brief, “Further F-22 Production is crucial to
winning Future Wars”, http://blog.nationalsecurity.org/2008/07/further-f-22-pr.html#52768886
Today, the Pentagon doesn't have a coherent plan for how it will sustain global air dominance over the next 30 years
without a sufficient number of F-22s, because it has convinced itself that unconventional warfare is the wave of the
future. In other words, it doesn't think U.S. air dominance will be challenged. Not surprisingly, some potential
adversaries like Russia see this as an invitation to begin competing again for command of the skies. The next
administration needs to step back from all the trendy ideas of the past eight years and focus on some basic facts about military
preparedness...
1. Air dominance -- the ability to control airspace -- is the most important capability U.S. forces have. Without it, soldiers and
sailors on the surface are constantly in danger from hostile aircraft, and friendly aircraft cannot safely accomplish missions like
bombing and airlift.
2. U.S. air dominance is at risk today around the world from new surface-to-air missiles that can shoot down any plane
that is not stealthy or shielded from detection by electronic jamming. Additional danger comes from new foreign
fighters that match or surpass the F-15.
3. Even without these new threats, the current fleet of cold-war fighters is so old that it cannot be counted on to provide
air dominance in the future. Many Air Force fighters operate on flight restriction due to metal fatigue, corrosion and
other age-related maladies.
4. The F-22 is the only fighter the U.S. is building that was designed mainly as an air dominance aircraft rather than as
a tradeoff of competing roles. It can conduct bombing, intelligence gathering and information warfare, but these do not
detract from the air dominance mission.
5. Most of the money required to build 381 F-22s has already been spent, and cannot be recovered -- including $24 billion
spent by five administrations to develop the plane. So the real question today is whether warfighters will get a good return on
that investment by buying enough planes.
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Airpower Impact
F-22s are unprecedented at establishing air dominance, and have the
capabilities to deal with new threats.
Todd Lopez, Staff Writer at Air Force Print News. 6/23/06 “F-22 excels at establishing air dominance”
http://www.af.mil/news/story.asp?storyID=123022371
"Even without stealth, this is the world's best fighter," General Lewis said. "The F-22, its ability with speed and
maneuverability, is unprecedented. The problem with the F-35 Joint Strike Fighter in establishing air dominance is that you
have to buy two or three to replace the F-22, because it only has half the weapons load, and it doesn't have the speed. You can't
replace (the F-22) one-for-one with an F-35 or any other legacy fighter such as the F-15E."
During Exercise Northern Edge 2006 in Alaska in early June, the F-22 proved its mettle against as many as 40 "enemy
aircraft" during simulated battles. The Raptor achieved a 108-to-zero kill ratio at that exercise. But the capabilities of the
F-22 go beyond what it can do. It is also able to help other aircraft do better.
"When you are outnumbered on the battlefield -- the F-22 helps the F-18 and the F-15s increase their performance,"
General Lewis said. "It gives them more situational awareness, and allows them to get their expenditures because you can't
kill all these airplanes with just the weapons aboard the F-22. It takes the F-15's and F-18's weapons. It was very successful, (in
its) ability to get everybody to integrate."
One role the F-22 is particularly good at, General Lewis said, is establishing air dominance. This means making airspace
above an area safe for other aircraft to come in do their mission. The F-22 is superb at performing air-to-air combat and
eliminating surface-to-air missiles. In fact, the F-22 is capable of dealing with both of those threats at the same time.
"Because of its stealth and its speed, it is unique in that category, in that it allows us to establish air dominance," General
Lewis said. "It goes after the aircraft, the SAMs, and the cruise missiles. And it can do it all at the same time. The legacy
(aircraft) can do any one of those, kind of okay, but they can't survive in contested airspace. They can first try to take care of
the aircraft, then they can work on the SAMs. But the F-22 has demonstrated, last year in (final operational testing and
evaluation), that we can do that simultaneously."
Of particular interest to the Air Force is the F-22's ability to deal with "double digit SAMs." A double digit SAM, Air
Force parlance for Russian-designed mobile surface-to-air missiles, is so named for the two digit designator in their NATO
reporting name. The Russian-designed S-300P Angara, for instance, is designated "SA-10" by NATO countries. The "S-
300PMU Favorit" is designated the "SA-20." Both Russia and China manufacture these weapons systems, and they are
readily available on the market. These weapons are highly mobile and pose a threat to Air Force legacy aircraft such as the F-
15 and F-16.
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Airpower Impact
F-22 Jets face funding woes at Washington despite its necessity to US security
August Cole, staff writer, 7/14/08, Wall Street Journal, “Fate of Lockeheed’s F-22 Raptor in Air”,
http://online.wsj.com/article/SB121599581309149673.html?mod=googlenews_wsj
The F-22 Raptor, capable of aerobatic feats unimaginable for earlier-generation jets, is expected to be the star attraction
Monday when it flies at the prestigious Farnborough International Airshow in England. But Lockheed Martin Corp. is set to
end production of the fighter when it delivers its final F-22 to the Air Force in 2011. It is a Catch-22 of military
contracting: The fighter is so advanced that, under law, not even U.S. allies are allowed to buy it. At the same time, the
Defense Department does not want to order any more because senior leaders believe it is not the right weapon for
current missions, which command a growing slice of the Pentagon budget.
That is a blow for Lockheed, which stands to miss out on revenue from its premier fighter. The plane, with a $143 million
price tag, is rolling off the assembly line problem-free, and last year the Air Force declared it combat-ready. Australia
and Japan have expressed interest in buying it, and many in the industry consider it the best fighter ever made. But
currently, Lockheed has orders for only 183 of them.
"The F-22 is clearly an icon of American power projection," says Tom Ehrhard, senior fellow at the Center for Strategic and
Budgetary Assessments and a former Air Force officer.
One of the plane's biggest vulnerabilities has been not in the air, but in Washington. The F-22 fighter program has been
in development since before the end of the Cold War. The Air Force wanted to buy 381 of the aircraft, arguing that any
less would leave gaps in their capabilities. But the current defense secretary, Robert Gates, has said the plane is not relevant
to the conflicts in Afghanistan and Iraq. He neither funded more fighters nor funded a line shutdown.
The curtailing of the F-22 has come to symbolize the tension in the Defense Department between future threats and today's
fights. Mr. Gates wants the Pentagon to focus on weaponry that serves ground forces, like those in Afghanistan and Iraq, and he
does not believe the F-22, which is geared more toward fighting a conventional foe, is needed.
The Air Force is concerned that even if the U.S. does not face any real rivals in battle today, China or Russia could still
emerge as adversaries. In addition, it argues that nations with small defense budgets can assemble dangerous air-
defense systems using an increasingly sophisticated and accessible array of antiaircraft weapons that can shoot down
lesser fighters.
Late last year, several lawmakers and the chief executives of the big defense companies involved in F-22 production
wrote Mr. Gates, arguing for funding for 20 more jets in the 2009 budget. That failed. It will be up to the next White
House whether the F-22 will be included in future defense budgets.
Despite the high stakes for Lockheed, based in Bethesda, Md., the company must be careful about lobbying for more sales. It
cannot afford to get publicly dragged into a feud between the Pentagon and the Air Force over the jet.
Lockheed said it supports the Pentagon's decision to let the next White House weigh in on the plane's fate. "We don't expect
this administration to make a particular judgment ... whether there will be more F-22s or not," Lockheed Chairman Robert
Stevens told reporters in London. Mr. Stevens said Lockheed later this year must tell some suppliers whether there will be any
follow-on orders.
Lockheed is developing a new fighter that is not caught in the same crossfire. Called the F-35 Lightning II Joint Strike Fighter,
it will cost almost $300 billion to develop and buy. Eight U.S. allies, including the U.K. and Australia, are involved in
producing the plane and plan to order it, as well. Other countries, such as Israel, may also sign up. But the F-35, which costs
less than half the price of the F-22, is not ready yet, and Air Force officials think the F-22 is a superior jet.
The single-seat F-22 can cruise at faster than the speed of sound, a feat other fighters cannot pull off, and it carries an
assortment of cutting-edge weapons. The plane's stealth and electronic warfare systems make it ideally suited to leading
missions into heavily defended areas.
At Farnborough, the 15-minute demonstration will likely include a highly anticipated back flip made possible by the plane's
unique ability to angle the thrust from its engines. "Anybody can drive a fighter aircraft fast, but to see it go slowly and just
hang in the air is really something," said Vic Johnston, a spokesman for 1st Fighter Wing at Langley Air Force Base in Virginia.
Showing the fighter at a high-profile venue like Farnborough will allow the Air Force to parade one of its most advanced
fighters before an audience that includes defense officials from around the globe
Airpower Impact
F-22 Jets are necessary for preparation against future enemies
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Daniel Collins and Trish Choate, staff writers, 7/13/08, Times Record News Washington Bureau, “Signs of Things to Come”,
http://www.timesrecordnews.com/news/2008/jul/13/sign-things-come/
If Iran’s missile tests are a sign of things to come, short-range fighting capabilities nurtured at Sheppard Air Force Base
should be among priorities for U.S. national defense.
But the base’s mission to train fighter pilots shouldn’t be the only priority, as far as Wichita Falls’ congressman is concerned.
“If this missile test reminds us of anything, it’s that we can’t afford to neglect any part of our capability,” Mac Thornberry, R-
Clarendon, of the 13th Congressional District said.
Iran conducted its second day of long-range weapon tests Wednesday in the Persian Gulf. The country’s military has fired at
least one rocket capable of reaching Israel. The tests raise the possibility of armed conflict.
Thornberry, a senior member of the House Armed Services Committee, said Iran’s missile tests show the need for a full range
of defense.
Long-range bombers and unmanned aerial vehicles, short-range fighter jets, missile defense and intelligence are key, he said.
The Department of Defense has emphasized investing in short-range fighter planes such as the F-35 and the F-22,
another new fighter jet. Sheppard might someday become home to an F-35 mission — not for pilot training but for
maintenance training. The base already has a mission to educate maintainers for the F-22.
But some argue long-range strike capabilities will be more important in future wars.
“There’s concern, even in the case of Iran, that getting short-range aviation in is not so easy and you might actually be better
off investing in long-range aviation,” Steve Kosiak, a military and budget analyst in Washington, said. “If you’re spending
$300 billion on the F-35 program, what does that say about your potential for investing in modernizing your long-range
aviation capabilities?”
Bombers such as the 36 B-1Bs assigned to Dyess Air Force Base in Abilene have become workhorses in wars in Iraq and
Afghanistan. They’ve won commanders over for their long-range strike capacity, ability to loiter in airspace, high payload
space and maneuverability.
Some question how relevant short-range fighters such as the F-35 and the F-22 will be in future wars similar to the one in Iraq
or in conflict with worrisome nations like China or Russia, said Kosiak of the Center for Strategic and Budgetary Assessments.
During Operation Iraqi Freedom, the Air Force had about one-third less short-range aircraft than a decade before in Desert
Storm, he said.
“There’s no right or wrong answer,” Kosiak said. “If you think the future threats are in the Pacific theater where distances are
so great that short-range aircraft are of very limited value then you might not think (short-range planes) are that relevant.”
The Government Accountability Office has found fault with how the Pentagon prioritizes weapons development.
A GAO report released this month said the Department of Defense will need about $1.6 trillion to complete major weapons
systems already in development.
“The funding process doesn’t properly prioritize what gets started and what doesn’t, so you get too many programs going,”
Michael Sullivan, a GAO analyst, said.
The report said the DOD does not fully commit funding to develop programs, despite a department mandate.
The department accepts unrealistic cost estimates for projects. When the tab becomes much larger than expected — many times
doubling or tripling — officials scale back considerably.
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1.) A trade-off with military spending is overdue; the F-22 is ineffective and
expensive.
Ethan Heitner, Staff writer for Tom Paine Common Sense. 7/27/06 “The Other F-22 Problem”
http://www.tompaine.com/articles/2006/07/27/the_f22s_other_problem.php
What do you do when you've got the world's most expensive fighter jet and its canopy won't open correctly so you have
to chainsaw free the hapless pilot?
If you're the U.S. government, you sign up for an extended three-year contract to ensure you get even more of them
than you originally wanted
Retired Vice Admiral Jack Shanahan elucidates the cost of the Pentagon's outdated thinking about defense spending today in an
article on TomPaine.com about the bloated and unloved F-22 Raptor fighter jet:
Political leaders in Washington are so scared of being labeled “weak on defense” that they rarely object at all to
defense expenditures, even ones like the F-22 that are widely regarded as wasteful. In fact, it’s an open secret in
Washington that tens of billions of dollars are going down the drain at the Pentagon.
At the same time, it’s also an open secret that millions of American kids lack health insurance, public schools around the
country are falling down, and our nation continues to rely on petroleum—a national vulnerability that could set us up for a
serious economic collapse.
And how much is the federal government spending on renewable energy research? About as much as we’re spending
on the F-22 fighter jet. And less than a third as much as we spend on national missile defense.
2.) No Impact – Current fighter planes would be able to make up for the lack of
F-22s.
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4.) Turn –
a.) Fermilab, a key particle lab, is on the edge; the plan will trade off.
Scientific American 7/7/08 “Fermilab Saved from Chopping Block--For Now”
http://www.sciam.com/article.cfm?id=fermilab-saved-from-chopp
A spending package signed into law last week by President Bush will provide enough cash to stave off the sacking of 90
employees at financially strapped Fermi National Accelerator Laboratory (Fermilab) in Batavia, Ill., the nation's leading
particle physics lab.
Acting Deputy Secretary of Energy Jeffrey Kupfer told Fermilab it will receive a $29.5-million infusion, including $9.5 million
for a key neutrino experiment planned to be completed in 2014.
But it remains to be seen whether Congress will dole out enough funds to keep the lab operating at its current capacity
in fiscal year 2009.
The emergency spending measure was passed after Fermilab offered employee buyouts to ease a nearly six-month
budget crunch triggered when lawmakers cut its funding by $20 million from the year before.
Judy Jackson, a lab spokesperson, said that 50 workers took the buyout two weeks ago, even though the Senate had passed the
bill and the president had signaled he would sign it. But she notes that Fermilab would have had to ax another 90 employees
if the new funds, part of $62.5 million forked over to the U.S. Department of Energy's Office of Science, had not been
approved.
Despite a huge sense of relief, Jackson says there is still concern about next year's budget, although there are promising signs:
The House Appropriations Committee approved a budget of $805 million for particle physics in FY 2009, nearly $117 million
more than this year's allocation. "This is the most encouraging thing, because this is where we came to grief last year, in the
House appropriations process," Jackson said.
The proposal may yet fizzle, however, as it did in December when Congress cut physics funding to meet a spending cap
imposed by the president.
Fermilab became more vulnerable when its most vocal congressional booster, former House Speaker Dennis Hastert (R.–Ill.),
who represented Fermilab's Congressional district, stepped down in November.
Jackson said the lab is "very encouraged" by support from Illinois congressional Democrats, Sen. Richard Durbin and Rep. Bill
Foster, a former Fermilab physicist who won Hastert's seat in a special election in March.
Another positive sign, she says: the appropriations committee used language in its budget proposal from a May report by the
Particle Physics Project Prioritization Panel (P5), which laid out a strategy for the coming decade to ensure the U.S.
"maintain[s] a leadership role in worldwide particle physics."
"We don't feel our challenges are over," Jackson said. "But we feel our challenges have fundamentally shifted."
159
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160
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2.) The missile defense program is unrealistic and will waste billions of dollars.
International Herald Tribune 4/17/08 Scientists, “critics say projected US missile defense system
cannot work” http://www.iht.com/articles/ap/2008/04/16/america/NA-GEN-US-Missile-Defense.php
A group of prominent scientists who have been critical of missile defense plans told lawmakers Wednesday that a system
being built by the United States cannot protect the country.
They also questioned whether the U.S. Defense Department has misled the public and European allies about the
system's capabilities.
"The (global missile defense) program offers no prospect of defending the United States from a real-world missile attack
and undermines efforts to eliminate the real nuclear threats to the United States," Lisbeth Gronlund, a senior scientist at
the Union of Concerned Scientists, told lawmakers at a House of Representatives oversight hearing on the missile defense
program, according to prepared testimony. Gronlund's group has long expressed skepticism about missile defense.
The hearing was called by the panel's chairman, Democratic Rep. John Tierney, who has sought to step up oversight of the
missile defense program since the Democrats took control of the House last year. Missile defense traditionally has drawn more
support from Republicans.
Tierney said the testimony from the witnesses raises questions about current missile defense spending levels. He pointed
to congressional projections of $213-$277 billion (€133.7-€173.9 billion) for the program between now and 2025.
161
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3.) Turn –
a.) Fermilab, a key particle lab, is on the edge; the plan will trade off.
Scientific American 7/7/08 “Fermilab Saved from Chopping Block--For Now”
http://www.sciam.com/article.cfm?id=fermilab-saved-from-chopp
A spending package signed into law last week by President Bush will provide enough cash to stave off the sacking of 90
employees at financially strapped Fermi National Accelerator Laboratory (Fermilab) in Batavia, Ill., the nation's leading
particle physics lab.
Acting Deputy Secretary of Energy Jeffrey Kupfer told Fermilab it will receive a $29.5-million infusion, including $9.5 million
for a key neutrino experiment planned to be completed in 2014.
But it remains to be seen whether Congress will dole out enough funds to keep the lab operating at its current capacity
in fiscal year 2009.
The emergency spending measure was passed after Fermilab offered employee buyouts to ease a nearly six-month
budget crunch triggered when lawmakers cut its funding by $20 million from the year before.
Judy Jackson, a lab spokesperson, said that 50 workers took the buyout two weeks ago, even though the Senate had passed the
bill and the president had signaled he would sign it. But she notes that Fermilab would have had to ax another 90 employees
if the new funds, part of $62.5 million forked over to the U.S. Department of Energy's Office of Science, had not been
approved.
Despite a huge sense of relief, Jackson says there is still concern about next year's budget, although there are promising signs:
The House Appropriations Committee approved a budget of $805 million for particle physics in FY 2009, nearly $117 million
more than this year's allocation. "This is the most encouraging thing, because this is where we came to grief last year, in the
House appropriations process," Jackson said.
The proposal may yet fizzle, however, as it did in December when Congress cut physics funding to meet a spending cap
imposed by the president.
Fermilab became more vulnerable when its most vocal congressional booster, former House Speaker Dennis Hastert (R.–Ill.),
who represented Fermilab's Congressional district, stepped down in November.
Jackson said the lab is "very encouraged" by support from Illinois congressional Democrats, Sen. Richard Durbin and Rep. Bill
Foster, a former Fermilab physicist who won Hastert's seat in a special election in March.
Another positive sign, she says: the appropriations committee used language in its budget proposal from a May report by the
Particle Physics Project Prioritization Panel (P5), which laid out a strategy for the coming decade to ensure the U.S.
"maintain[s] a leadership role in worldwide particle physics."
"We don't feel our challenges are over," Jackson said. "But we feel our challenges have fundamentally shifted."
162
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163
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No forced trade-off
The navy will be able to withstand any cuts, as it is already pushing for them
on the DDG destroyer.
Christopher P. Cavas, Staff Writer at Navy Times. 7/15/08 “DDG Destroyer Facing Major Cuts”
http://www.navytimes.com/news/2008/07/defense_ddg100_071408/
On the record, Navy officials are mum about their plans. Service support for the DDG 1000 program has been lukewarm at
best, and while publicly supporting the ships, Navy leaders behind the scenes have worked halt further production.
The move still awaits blessing from on high, sources said, including approval from Defense Secretary Robert Gates and the
White House.
Chief of Naval Operations Adm. Gary Roughead “holds his cards real close,” said one Congressional source. “But read the
body language. He knows he’s in trouble with the DDG 1000s. That ship is going to cost anywhere from $1.5 billion to $3
billion more than advertised. And when that happens there’s no slush fund. The only billpayer is Navy shipbuilding.”
The Navy, said the congressional source, needs to protect other programs such as submarine and littoral combat ships
from being cut to pay for potential DDG 1000 cost overruns.
Instead of the big destroyer, the Navy also hopes to protect the CG(X) cruiser, a bigger combatant designed to protect
aircraft carrier battle groups and provide ballistic missile defense.
164
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Serrano
A spending package signed into law last week by President Bush will provide enough cash to stave off the sacking of 90
employees at financially strapped Fermi National Accelerator Laboratory (Fermilab) in Batavia, Ill., the nation's leading
particle physics lab.
Acting Deputy Secretary of Energy Jeffrey Kupfer told Fermilab it will receive a $29.5-million infusion, including $9.5 million
for a key neutrino experiment planned to be completed in 2014.
But it remains to be seen whether Congress will dole out enough funds to keep the lab operating at its current capacity
in fiscal year 2009.
The emergency spending measure was passed after Fermilab offered employee buyouts to ease a nearly six-month
budget crunch triggered when lawmakers cut its funding by $20 million from the year before.
Judy Jackson, a lab spokesperson, said that 50 workers took the buyout two weeks ago, even though the Senate had passed the
bill and the president had signaled he would sign it. But she notes that Fermilab would have had to ax another 90 employees
if the new funds, part of $62.5 million forked over to the U.S. Department of Energy's Office of Science, had not been
approved.
Despite a huge sense of relief, Jackson says there is still concern about next year's budget, although there are promising signs:
The House Appropriations Committee approved a budget of $805 million for particle physics in FY 2009, nearly $117 million
more than this year's allocation. "This is the most encouraging thing, because this is where we came to grief last year, in the
House appropriations process," Jackson said.
The proposal may yet fizzle, however, as it did in December when Congress cut physics funding to meet a spending cap
imposed by the president.
Fermilab became more vulnerable when its most vocal congressional booster, former House Speaker Dennis Hastert (R.–Ill.),
who represented Fermilab's Congressional district, stepped down in November.
Jackson said the lab is "very encouraged" by support from Illinois congressional Democrats, Sen. Richard Durbin and Rep. Bill
Foster, a former Fermilab physicist who won Hastert's seat in a special election in March.
Another positive sign, she says: the appropriations committee used language in its budget proposal from a May report by the
Particle Physics Project Prioritization Panel (P5), which laid out a strategy for the coming decade to ensure the U.S.
"maintain[s] a leadership role in worldwide particle physics."
"We don't feel our challenges are over," Jackson said. "But we feel our challenges have fundamentally shifted."
165
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166
Econ Generic
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NMD stuff
167
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The missile defense system is key to prevent a war with Iran and promote
stability in the Middle East.
Riki Ellison, President and Founder of Missile Defense Advocacy Allience. 7/10/08 “Clear and Present
Danger” http://www.missiledefenseadvocacy.org/news.aspx?news_id=1242
Iran's firing of 9 ballistic missiles yesterday and more missiles today as an escalatory response to military exercises and
political rhetoric is unequivocally a Clear and Present Danger to the United States of America and its allies in the
Middle East. Our nation and the international community need real options to forgo preemptive military action and or
direct escalatory military action by the United States and its allies that would most likely lead to war with Iran.
Currently, the U.S. has fully operational, deployed missile defense systems that can stabilize the region, whereby
strengthening the deterrent and decreasing the threat by non-lethal means without escalating an already dynamic
situation. Missile defense in this situation can stabilize and offer valuable positioning for diplomatic efforts to ease down
the intensity and work for a solution.
Currently to bring to bear in the Middle East region, the United States Army has multiple PAC -3 battalions and the United
States Navy has 15 missile defense equipped Aegis Ships, equipped with tracking radars and missile defense interceptors of
Standard Missile-3 and Standard Missile-2s. The country of Israel has deployed Arrow and PAC-3 missile defense systems.
Though some of these systems are already in the region and more should follow, the inventory of interceptors is very limited.
Having these systems in the Middle East region cannot guarantee full protection from Iran's missiles but it can offer more
deterrence and some limited protection to our American and Allied citizens as well as armed forces in the region.
This demonstrated use of multiple launches on the world stage coupled with Iran's nuclear intentions and their stated political
intent amplifies and validates the reasoning of why our nation through 11 Congresses and 4 United States Presidents have fully
supported and funded the development, deployment and continued evolution of missile defense. It is the reason why the 26
countries of NATO have fully endorsed missile defense and the third site in Europe. It is the reason why the country of Israel
has developed and deployed missile defense systems and other countries in the Middle East region have reached out to the
United States for missile defense. It validates the Czech Republic agreement on missile defense earlier this week, and it adds to
the necessity of protecting Europe from ballistic missiles.
It is of vital importance to global peace and security for the United States and the international community to continue
to develop and deploy future missile defenses for the threat our world faces today and in the future.
168
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The missile defense system has proven it’s worth, but is facing cuts.
International Herald Tribune 7/11/08 “Reagan's vision for missile defense shield remains just as contentious
in post-Cold War world” http://www.iht.com/articles/ap/2008/07/11/business/NA-US-Missile-Defense-
Outlook.php
Washington: The government breathed a sigh of relief in February when the Pentagon used a sea-based missile defense
system to shoot down a dying spy satellite loaded with a tank of toxic fuel hurtling around the globe at 17,000 miles (27,357
kilometers) an hour.
The mission was a critical test of the "hit-to-kill" technology at the heart of the U.S. missile defense program, an idea
born at the height of the Cold War when Ronald Reagan outlined his vision for a network of missiles that could shoot enemy
weapons out of the sky or space. Back then, skeptics dismissed the proposal as pure fantasy, nicknaming it Star Wars.
Twenty-five years later, the satellite operation — which used a Navy cruiser equipped with Lockheed Martin Corp. technology
and Raytheon Co. missiles and radar systems — showed the world it could be done.
But behind the hoopla, a fierce debate rages over the ability of the missile defense system to defend the nation from an
actual attack and the billions of dollars that President Bush has devoted to the program — funding levels that could be
cut in half under the next administration.
169
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Mid-East Impact
Increased instability in the Middle East will quickly break down to chaos and
plunge the world into war.
Cetron, Marvin J.; Davies, Owen. Writers for The Futurist. 9/1/07 “Worst-case scenario: the Middle East:
current trends indicate that a Middle Eastern war might last for decades. Here is an overview of the most critical
potential impacts”
There is more to come. After all, this is the most volatile region in the world. Sunnis and Shi'ites have carried on an
intermittent religious and ethnic power struggle there for some 1,400 years. Worse, after World War I the victors
deliberately broke the Middle East into artificial states that could never be stable, and thus could not easily be united
under the banner of Pan Arabism. As Sesh Velamoor of the Foundation For the Future points out, if the West is unhappy with
conditions in the Middle East, it has itself largely to blame. But the important point is that mere instability soon could
break down into general chaos.
Here is one possible course of events: Hezbollah's current protests in Lebanon and the government's reactive crackdown may
result in a larger war. Saudi Arabia could intervene here, too, as it has been actively supporting the government of Prime
Minister Fouad Siniora. At the same time, Hezbollah and Hamas, in the Occupied Territories, will be encouraged to expand
their struggle against Israel. In Egypt, the banned but still powerful Muslim Brotherhood would be encouraged to resume
the battle for a fundamentalist Islamic state, endangering Western access to the Suez Canal. Extremists from distant
reaches of the Muslim world will flood into the Middle East. Saudi Arabia, a land of Sunni Arabs, and Iran, the home of
Persian Shi'ites, already on opposite sides in Iraq, might expand their conflict to do battle across the Persian Gulf, with fallout
in Kuwait, Qatar, and the United Arab Emirates. One way or another, it all spins out of control. Everyone in the Middle
East fights everyone else for decades.
170
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NMD Good
Missile defense can effectively deter an attack from rogue nations and allow
American soldiers to operate effectively.
John McCain, Senator for Arizona. 2008 “A Strong Military in a Dangerous World”
http://www.johnmccain.com/informing/issues/054184f4-6b51-40dd-8964-54fcf66a1e68.htm
John McCain strongly supports the development and deployment of theater and national missile defenses. Effective missile
defenses are critical to protect America from rogue regimes like North Korea that possess the capability to target
America with intercontinental ballistic missiles, from outlaw states like Iran that threaten American forces and
American allies with ballistic missiles, and to hedge against potential threats from possible strategic competitors like
Russia and China. Effective missile defenses are also necessary to allow American military forces to operate overseas
without being deterred by the threat of missile attack from a regional adversary.
John McCain is committed to deploying effective missile defenses to reduce the possibility of strategic blackmail by rogue
regimes and to secure our homeland from the very real prospect of missile attack by present or future adversaries.
America should never again have to live in the shadow of missile and nuclear attack. As President, John McCain will not trust
in the "balance of terror" to protect America, but will work to deploy effective missile defenses to safeguard our people and our
homeland.
171
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NMD Bad
The missile defense program is unrealistic and will waste billions of dollars.
International Herald Tribune 4/17/08 Scientists, “critics say projected US missile defense system
cannot work” http://www.iht.com/articles/ap/2008/04/16/america/NA-GEN-US-Missile-Defense.php
A group of prominent scientists who have been critical of missile defense plans told lawmakers Wednesday that a system
being built by the United States cannot protect the country.
They also questioned whether the U.S. Defense Department has misled the public and European allies about the
system's capabilities.
"The (global missile defense) program offers no prospect of defending the United States from a real-world missile attack
and undermines efforts to eliminate the real nuclear threats to the United States," Lisbeth Gronlund, a senior scientist at
the Union of Concerned Scientists, told lawmakers at a House of Representatives oversight hearing on the missile defense
program, according to prepared testimony. Gronlund's group has long expressed skepticism about missile defense.
The hearing was called by the panel's chairman, Democratic Rep. John Tierney, who has sought to step up oversight of the
missile defense program since the Democrats took control of the House last year. Missile defense traditionally has drawn more
support from Republicans.
Tierney said the testimony from the witnesses raises questions about current missile defense spending levels. He pointed
to congressional projections of $213-$277 billion (€133.7-€173.9 billion) for the program between now and 2025.
172
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NMD Bad
The presence of missile defense is leading to a cold war style arms race, the
only way to avoid another cold war is to abandom the NMD program.
Luke Harding, Staff Writer for The Guardian. 4/11/07 “Russia threatening new cold war over missile defence”
http://www.guardian.co.uk/world/2007/apr/11/usa.topstories3
The Bush administration says the bases are designed to shoot down rogue missiles fired by Iran or North Korea. Its
proposed system would be helpless against Russia's vast nuclear arsenal, it says.
But this claim has been greeted with widespread incredulity, not just in Russia but also among some of the US's nervous
Nato allies. They include Germany, where the Social Democrat leader, Kurt Beck, warned last month that the US and
Russia were on the brink of another arms race "on European soil".
Defence experts say there is little doubt that the real target of the shield is Russia. "The geography of the deployment
doesn't give any doubt the main targets are Russian and Chinese nuclear forces," General Vladimir Belous, Russia's leading
expert on anti-ballistic weaponry, told the Guardian. "The US bases represent a real threat to our strategic nuclear forces."
The threat of a new arms race comes at a time when relations between Russia and the US are at their worst for a
decade. In February Mr Putin accused the Bush administration during a speech in Munich of seeking a "world of one
master, one sovereign". On Friday Russia's duma, or lower house or parliament, warned that the US's plans could ignite a
second cold war. "Such decisions, which are useless in terms of preventing potential or imaginary threats from countries
of the middle and far-east, are already bringing about a new split in Europe and unleashing another arms race," the
declaration - passed unanimously by Russian MPs - said.
173
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174
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1NC
Uniqueness: Lockheed’s F-22 Jets have been cut back because of spending
restraints
Elizabeth Becker, staff writer, 7/23/1999, New York Times, “Critics Catch up to a 21st – Century Jet”,
http://query.nytimes.com/gst/fullpage.html?res=9401EFD9153EF930A15754C0A96F958260&sec=&spon=&pagewanted=all
This picture of outsized industrial self-confidence survived years of questioning from Congress about cost overruns and
delays in the $70 billion project intended to build the Air Force's state-of-the-art fighter jet. Throughout those years, the
program enjoyed the powerful protection of Georgia politicians like Newt Gingrich, the former Speaker of the House
whose district included this Lockheed plant, and Sam Nunn, the former head of the Senate Armed Services Committee.
Without them, Lockheed finds itself on the defensive with Congress, with the House yesterday approving the deletion of
$1.8 billion earmarked to manufacture the first six jets to be used in combat as it went ahead and overwhelmingly
approved the military spending bill for the next fiscal year.
It was a defeat for the Pentagon and the manufacturer, which rarely had encountered a Congress opposed to a military
program on the verge of production.
Critics in the House have said the F-22 suffers from a number of technical difficulties, including problems with the plane's
wings, brakes, fuselage, fuel lines and engines, and that its computer systems remain untested. According to Government
auditors, the F-22 has passed only 5 percent of its flight tests and its manufacturers are having trouble connecting the plane's
wings to its body and perfecting the cockpit computers that drive its navigation and war-fighting systems.
''Maybe we should have seen it coming but nobody did,'' said Tom Burbage, the president of Lockheed Martin Aeronautical
Systems. ''We thought this would be the first year we wouldn't have a battle and instead we have the biggest we've ever had.''
Lockheed Martin has been lobbying heavily to save this program and remains confident that it can win the battle when the
House and the Senate meet in conference on the measure . It does have the support of several prominent Senators who are
ardent loyalists of the next-generation jet.
175
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1NC
176
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DDI 2008
Serrano
1NC
Impact Airpower - The F-22 Jets necessary for US security in the skies
Elizabeth Becker, staff writer, 7/23/1999, New York Times, “Critics Catch up to a 21st – Century Jet”,
http://query.nytimes.com/gst/fullpage.html?res=9401EFD9153EF930A15754C0A96F958260&sec=&spon=&pagewanted=all
On the outside, the flat, almost blunt silhouette of the F-22 has little of the futuristic look of the B-2 stealth bomber.
Inside, in the cockpit, however, it has the feel of a video game in which approaching enemy aircraft are tracked on a computer
screen as red triangles, easily distinguishable from the green squares representing the ''friendlies'' and the pale yellow oblongs
indicating planes with unknown loyalties.
''Use the cursor like a mouse and see who he is,'' said C. L. Buzze, a former Air Force pilot and now the F-22 advanced product
representative, as he manipulated the levers of a facsimile of an F-22 cockpit.
The cursor slid over the triangle and immediately identified the enemy plane as a fighter jet from the Russian fleet. When the
plane came in range, the command ''Shoot'' appeared on the screen, and with a flick of a switch, a white tail slithered across the
screen hitting a dot that exploded into a small fiery ball.
But if the plane passes all of its tests during the next three to four years, officials say that the expensive stealth features
built into nearly every part of the plane will insure that the F-22 image on an enemy radar is so reduced that it is
unlikely to be detected before the it attacks. And according to Lockheed officials, the F-22's supersonic cruising speed,
and technical advances will enable the F-22 pilot to take the first shot in an aerial duel.
The aviation electronic system in the cockpit, where data are collected, integrated and instantly compiled on the screen,
is one of fighter jet's biggest selling points. Many modern fighter jets have the F22's capabilities but none compile it and
integrate it on one single screen.
The House Appropriations Committee cited these ''ambitious technical goals of the F-22,'' especially the electronic system in
the cockpit, as the reason for the delays in the fighter jet's development.
And this advanced technology has come at a cost far in excess of the original $70 million budgeted for each plane. Lockheed
Martin officials admit that the average price per plane, when all costs are included, is $172 million -- not far from the $180
million and $200 million figure cited by Congress.
They recognize that Congress is convinced that the Pentagon should drop at least one of the three fighter jet programs under
development. Naturally, Lockheed Martin has a different candidate than its own F-22 jet.
''If Congress feels it needs to remove one of the air weapons programs, I'd pick the F-18,'' said Mr. Rearden, recommending the
Navy's refitted fighter jet
<INSERT KHALIZHAD>
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Budget Tight
Yet those demands for money do not even include the price of refocusing the military’s attention beyond the current
wars to prepare for other challenges.
Senior Pentagon civilians and the top generals and admirals do not deny the challenge of sustaining military spending,
and they acknowledge that Congress and the American people may turn inward after Iraq.
“I believe that we need to have a broad public discussion about what we should spend on defense,” Adm. Mike Mullen,
chairman of the Joint Chiefs of Staff, said Friday.
Defense Secretary Robert M. Gates and Admiral Mullen have said military spending should not drop below 4 percent of
the national economy. “I really do believe this 4 percent floor is important,” Admiral Mullen said. “It’s really
important, given the world we’re living in, given the threats that we see out there, the risks that are, in fact, global, not
just in the Middle East.” [continued]
[continued]
Geoff Morrell, the Pentagon press secretary, said Mr. Gates and the senior Pentagon leadership were well aware that the large
emergency spending bills for the war, over and above the Pentagon base budget, would at some point come to an end.
“The secretary believes that whenever we transition away from war supplementals, the Congress should dedicate 4
percent of our G.D.P. to funding national security,” Mr. Morrell said. “That is what he believes to be a reasonable price
to stay free and protect our interests around the world.”
178
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179
Econ Generic
DDI 2008
Serrano
180
Econ Generic
DDI 2008
Serrano
181
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DDI 2008
Serrano
F-22 Impacts
The F-22 Jets are designed from cutting edge technology necessary for US
security in the skies
Elizabeth Becker, staff writer, 7/23/1999, New York Times, “Critics Catch up to a 21st – Century Jet”,
http://query.nytimes.com/gst/fullpage.html?res=9401EFD9153EF930A15754C0A96F958260&sec=&spon=&pagewanted=all
On the outside, the flat, almost blunt silhouette of the F-22 has little of the futuristic look of the B-2 stealth bomber.
Inside, in the cockpit, however, it has the feel of a video game in which approaching enemy aircraft are tracked on a computer
screen as red triangles, easily distinguishable from the green squares representing the ''friendlies'' and the pale yellow oblongs
indicating planes with unknown loyalties.
''Use the cursor like a mouse and see who he is,'' said C. L. Buzze, a former Air Force pilot and now the F-22 advanced product
representative, as he manipulated the levers of a facsimile of an F-22 cockpit.
The cursor slid over the triangle and immediately identified the enemy plane as a fighter jet from the Russian fleet. When the
plane came in range, the command ''Shoot'' appeared on the screen, and with a flick of a switch, a white tail slithered across the
screen hitting a dot that exploded into a small fiery ball.
But if the plane passes all of its tests during the next three to four years, officials say that the expensive stealth features
built into nearly every part of the plane will insure that the F-22 image on an enemy radar is so reduced that it is
unlikely to be detected before the it attacks. And according to Lockheed officials, the F-22's supersonic cruising speed,
and technical advances will enable the F-22 pilot to take the first shot in an aerial duel.
The aviation electronic system in the cockpit, where data are collected, integrated and instantly compiled on the screen,
is one of fighter jet's biggest selling points. Many modern fighter jets have the F22's capabilities but none compile it and
integrate it on one single screen.
The House Appropriations Committee cited these ''ambitious technical goals of the F-22,'' especially the electronic system in
the cockpit, as the reason for the delays in the fighter jet's development.
And this advanced technology has come at a cost far in excess of the original $70 million budgeted for each plane. Lockheed
Martin officials admit that the average price per plane, when all costs are included, is $172 million -- not far from the $180
million and $200 million figure cited by Congress.
They recognize that Congress is convinced that the Pentagon should drop at least one of the three fighter jet programs under
development. Naturally, Lockheed Martin has a different candidate than its own F-22 jet.
''If Congress feels it needs to remove one of the air weapons programs, I'd pick the F-18,'' said Mr. Rearden, recommending the
Navy's refitted fighter jet.
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1. NON-UNIQUE, TRADE OFF INEVITABLE
Air Force is being forced to scrap its F-22 proposals
Ivan Eland, Director of Center of Peace and Liberty, 6/28/08, The Independent Institute, “Can the Air Force be Reformed?”,
http://www.antiwar.com/eland/?articleid=13059
During the tenure of Secretary of Defense Donald Rumsfeld, the Army was the military service in the doghouse. Under
his successor, Robert Gates, it appears to be the Air Force. Recently, Secretary Gates took the unprecedented step of
firing the top civilian and military leaders of the service for its snafus with nuclear weapons and components. And then
there was also the Air Force's favoritism in contracting and its failure to be a team player in the counterinsurgency
wars in Iraq and Afghanistan. Despite the Secretary's dramatic actions, vested interests will probably thwart his desire
to reform the service.
Since the Vietnam War, the "essence" of the Air Force has been promoting and flying high performance tactical fighter aircraft.
The service's concentration on heavy bombers that could deliver nuclear weapons waned as the Cold War dragged on, and its
attention to nuclear delivery systems fell into oblivion after the Berlin Wall fell. The Air Force's de-emphasis of its nuclear
mission is in part responsible for bomber crews carrying nuclear weapons across the country without knowing it and
mistakenly sending fuses for nuclear weapons to Taiwan. Yet despite the firings, and most likely to compensate the Air Force
for them, Secretary Gates promised to reward failure by increasing the service's budget for nuclear activities.
Also much to Secretary Gates's stated annoyance, the service has been neglecting remotely piloted surveillance drones, which
have proven invaluable in the counterinsurgency wars being waged in Iraq and Afghanistan. It has also shortchanged the
mission of transporting troops, equipment, fuel, and food for ground troops in such theaters, while lobbying to buy more stealth
F-22 stealth fighters to counter future possible adversaries. The drones are neglected because they don't require pilots – the
people who run the Air Force. Resembling giant toy airplanes, they are piloted remotely using a joystick.
The transport mission is shortchanged because cargo planes are much less sexy to fly than new high tech fighter jets. The
problem is that the Air Force, even without having bought any F-22s, has existing aircraft, pilots, and weapons that, when used
together, would vastly dominate any future conventional opponent, including China, India, or and Russia. The F-22 was
originally designed during the Cold War to counter Soviet fighters that were never built.
Another problem is that unmanned surveillance drones don't cost as much as high tech fighters. In addition to pilots being a
powerful interest group within the service, the military-industrial-congressional complex would probably thwart an increased
emphasis on drones even if the pilots didn't. Lucrative contracts on the F-22, which usually go to industrial concerns heavily
dependent on defense business in key congressional districts, have kept the unneeded fighter alive, at the expense of increased
funding for badly needed drones. Members of Congress who have such defense industries in their districts and states usually
become powerful members of congressional committees that authorize and appropriate funds for such projects.
Firing the civilian and military leaders of the service with only 7 months to go in the Bush administration will do virtually
nothing to bust the vested interests that have led to the present state of affairs. Although the new military chief will stay on into
the next administration and is, for once, a military transport person, the fighter mafia, because of its glamour, is still likely to
remain in control of the service. Supporting losing counterinsurgencies on the ground will never be as alluring as dreams of
dogfights with non-existent enemy superfighters.
The one thing that could be done to at least loosen the grip of the military-industrial-congressional complex is to require
the Air Force to drop excessively unique military specifications for components of weapon systems and instead use
commercial components or slight variations thereof. Letting commercial non-defense companies – which are not part of
the dedicated defense industry dependent on government largesse – compete for defense subcontracts would lessen the
pressure to buy unneeded weapon systems. If subcontractors had commercial business to fall back on when defense
procurement was slow, there would be less pressure for the Air Force and Congress to buy unneeded systems to keep the
welfare queens of the dedicated defense subcontracting industry aloft.
However, this reform, even if adopted, would have an effect only over the long-term. Thus, despite the secretary's
dramatic personnel changes, don't expect to see a different Air Force soon.
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F-22’s suck
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"Nevertheless, the consequences of the FY 2008 Omnibus Bill for the U.S. scientific workforce are substantial. . . . Office of
Science funding for Ph.D.'s, graduate students, and others was decreased from the President's Request by over 4,300. This at a
time when other nations around the world are increasing their scientific workforce.
<<CONTINUES NEXT PAGE
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"The message of this year's appropriation is unmistakable. The American public, through its duly elected Congress, has made
its priorities clear: short-term applied research wins over the full spectrum of long-term basic research. It is our job to make
clear to the American people that our country will 'run out of gas' if the latter is not supported. In the absence of breakthroughs
in fundamental science, current technologies will simply not be able to meet the energy and environmental challenges that
loom ahead for our Nation. Progress in basic science is essential to America's continued prosperity and strength in the twenty-
first century.
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Finding and understanding the actual congressional material regarding this cut is difficult. It is easy to find media coverage of
the results but they will not say much about the ITER issue. A collection of the House Amendments to the bill provides the best
overview. With respect to ITER, the Joint Explanatory Statement says (emphasis added),
Funding under this heading in the amended bill includes $289,180,000 for Fusion Energy Sciences. Within Fusion Energy
Sciences, $162,910,000 is provided for Science, $93,504,000 for U.S. Facility Operations, an increase of $6,000,000 to be used
to increase facility operations at the three U.S. user facilities (i.e., the DIII-D, Alcator C-Mod, and National Spherical Torus
Experiment) $22,042,000 for Enabling R&D, an increase of $1,225,000 for materials research, $0 for the U.S. contribution to
ITER, and $10,724,000 for Enabling R&D for ITER. Funding under this heading in the amended bill includes $12,281,000 for
High Energy Density Physics. Funding may not be reprogrammed from other activities within Fusion Energy Sciences to
restore the U.S. contribution to ITER.
The removal of funds for our ITER contribution might normally be considered a temporary technicality if not for the final line
stating that money may not be transferred from other funds to pay the contribution. This suggests that the bill's intent is to
completely reacquire the $160 million originally reserved for ITER. I have not determined what is included as “Enabling
R&D” though I suspect that this money will allow those already being paid through U.S. ITER support to continue receiving
their wage.
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The collection of circumstances now present do not bode well for ITER and they encourage renewed concern over U.S. fusion
and plasma research in general. It seems that history is repeating itself with regard to our role in ITER. An unwilling Congress,
the lack of powerful supporters, and economic pressures are aligned against a U.S. presence in ITER. The Government
Accountability Office has highlighted both the need for more fusion Ph.D.'s in the workforce and the fact that as many of half
of all plasma science and engineering Ph.D.'s leave the field (plain text, pdf). As a member of the group of graduate students in
this field I can positively state that our discussions focus on events like this ITER cut and the uncertainty in funding for this
type of research is a major motivation for moving to other sectors and very different careers. Supporting ITER encourages a
new generation of plasma scientists as much as cutting it leads these same people to other fields.
A broader issue remains: what happens if ITER is a rousing success and we were not involved? For a comparison, imagine that
the methods of AC and DC electricity generation and transmission had not been developed in the United States. The negative
impact on our industrialization and technological prowess is unimaginable. A successful ITER project with no U.S. assistance
will be very similar. The rest of the industrialized world will have a wealth of knowledge and ability in the field of fusion
driven electricity production@, along with the desire to feed their own national corporate interests with the first commercial
applications.
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Funding for nuclear energy is key because current containment units are
already malfunctioning
Energy News Service, 7/14/08 http://www.ens-newswire.com/ens/jul2008/2008-07-14-095.asp
The U.S. Department of Energy doesn't know enough about the condition and contents of millions of gallons of radioactive and
hazardous wastes stored in tanks at its Hanford Site in Washington state to make good decisions about cleanup and costs, according to
a new report by Congress's investigative agency.
The findings issued by the U.S. General Accountability Office are the latest in a string of critiques finding fault with the way the
Department of Energy is handling Hanford, which GAO natural resources and development director Gene Aloise called "one of the
most contaminated places on Earth."
Situated on 586 square miles along the Columbia River in southeastern Washington, upstream from the cities of Richland, Pasco and
Kennewick, the Hanford Site was established in 1943 to produce plutonium for atomic bombs, as part of the government's top-secret
Manhattan Project.
Hanford manufactured nuclear materials through 1989, a mission that left in its wake the world's largest environmental cleanup
project.
Now, the Department of Energy is responsible for managing more than 56 million gallons of radioactive and hazardous waste stored in
149 single-shell and 28 double-shell underground tanks.
Of those, 67 are confirmed or presumed to have already leaked about one million gallons of waste into the ground. In 2000, the
estimated cost of tank waste cleanup was estimated at nearly $50 billion.
One of the agency's plans is to convert some of the most perilous radioactive waste into glass, a process called vitrification. But the
process of conversion is stymied by the fact that some of the radioactive elements have formed "unknown compounds" while in
storage.
The Energy Deparment has an agreement with the U.S. Environmental Protection Agency and state of Washington's Department of
Ecology to remove waste from single-shelled tanks by the fall of 2018 and "immobilize" all tank waste by the end of 2028.
But the department is far behind schedule. By its latest estimate, according to the GAO report, waste treatment will not begin until late
2019 and it could continue to 2050 and beyond.
In its report issued June 30, the GAO recommended that the Department of Energy give priority to assessing the integrity of single-
shelled tanks; quantify specific risks of continuing to use the tanks; and work with state and federal agencies on a realistic cleanup
schedule.
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ITER is on the Brink now, any trade-off will cut its funding
Peter Fairley, Contributing Editor Peter Fairley has reported for IEEE Spectrum from Bolivia, Beijing,
and Paris., 2/14/08 http://www.spectrum.ieee.org/feb08/5980 The 2004 report “Burning Plasma: Bringing a Star to
Earth,” from the U.S. National Research Council, sold Washington on the International Thermonuclear Experimental Reactor (ITER),
a massive R&D project that proponents predict will be the breakthrough project for fusion energy. In its fiscal 2008 budget, however,
Congress drove the United States’ role in ITER right into the ground, slashing US $160 million promised for this year to $10.7
million. U.S. Department of Energy (DOE) officials are expected to provide an update on how the United States plans to work around
the budget shortfall at a meeting of the agency’s Fusion Energy Sciences Advisory Committee next Tuesday. But the United States’
paltry participation has some wondering if fusion research, considered since the 1960s one of the great long shots for a sustainable and
relatively clean energy supply, has run out of time. ITER, set to begin construction in Cadarache, near Marseilles in southern France,
aspires to produce the first self-sustaining fusion reaction. Like most fusion experiments to date, ITER will use formidable electric
currents and magnetic fields to induce fusion in isotopes of hydrogen (deuterium and tritium) and to contain the resulting burning
plasma—akin to a tiny star and exceeding 100 million ˚C. But where existing fusion reactors have produced heat equivalent to just a
few megawatts of power for fractions of a second, ITER should put out 500 megawatts—10 times as much as the external power
delivered—for several minutes. Getting there requires a scale of investment that only international consortia can support. The 27-
meter-high magnetic confinement chamber required will take a decade to build and cost an estimated $2.76 billion. Including design,
administration, and 20 years of operation, the project’s total expenses will be nearly $15 billion. The European Union has agreed to
cover half that cost, with the other half shared by the United States, China, India, Japan, Russia, and the Republic of Korea. U.S.
support has waxed and waned before. In 1998, Congress pulled the United States out of ITER, judging the design too pricey. ITER got
Congress back on board in 2005 with a redesign that cut the cost in half, only to see the United States trim the cap on its contribution
for ITER the next year from $1.4 billion to $1.1 billion. This year’s budget cut will prevent the DOE from lining up contractors for
the design and assembly of the hardware that it committed to supply, which includes conductors for the magnets, a pellet injector to
deliver solid deuterium fuel, and an exhaust system for tritium gas. The $10.7 million provided by Congress will cover only U.S.
personnel posted to ITER in France and a skeleton staff in the States. ITER supporters say the setback is temporary. They note that
congressional committees fully funded ITER in draft legislation last fall, only to see the funds shed in the course of a larger budget
battle between President Bush and Congress. At the last minute, Congress slashed $22 billion to avoid a threatened veto, and ITER
was an obvious target as a new and nondomestic project. “It’s just one of those things that happen because of this financial mess we’re
in,” says Stephen Dean, president of Fusion Power Associates, a nonprofit research and educational outfit based in Gaithersburg, Md.
Dean says that slowdowns at ITER, as officials grapple with more than 200 proposed design changes, will blunt the effect of U.S.
delays. “The impact is going to be relatively small, provided that it doesn’t happen again next year,” says Dean. But some observers
say it could happen again if the “financial mess” endures, because ITER—the core of the U.S. fusion program—appears to be low on
Congress’s list of priorities. James Decker, a principal with Alexandria, Va., lobbying firm Decker Garman Sullivan and former
director of the DOE’s Office of Science, notes that Congress instead provided extra funding for shorter-term energy solutions. For
example, Congress gave a 23 percent raise to the DOE’s energy R&D programs, covering such areas as carbon sequestration and solar
energy. If the United States does drop out of ITER, that could weaken support among other ITER players. Britain pulled its funding
for another international R&D megaproject, the $6.7 billion International Linear Collider, after Congress effectively froze U.S.
participation in the project. The International Linear Collider is the successor to the CERN (European Organization for Nuclear
Research) Large Hadron Collider, which is to begin operations this year. Proponents of renewable energy would shed no tears if ITER
came apart. Ed Lyman, a senior scientist at the Union of Concerned Scientists, says governments today must determine if energy
technologies—including fusion—are “going to be realistic large-scale energy sources on a timeframe needed to mitigate global
warming.” Lyman says fusion, which even supporters agree is still several decades from fruition, flunks that test and has no place in
tight budgets: “R&D resources just aren’t there to support projects that are so expensive and have shown so little potential for promise
in the near term.”
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Alan Boyle (winner of the AAAS Science Journalism Award, the NASW Science-in-Society Award and
other honors; a contributor to "A Field Guide for Science Writers"; and a member of the board of the
Council for the Advancement of Science Writing.) 2/4/08
http://www.iterfan.org/index.php?option=com_content&task=view&id=361&Itemid=2%3C/span%3E)
President Bush’s final budget proposal puts America’s biggest science projects back on track, as expected, but the big question
is whether Congress will gut those projects like it did last year.
For the scientific community, one of the biggest disappointments in the budget compromise rushed through Congress late last
year was the $400 million reduction in support for projects on the cutting edge of physics through the Energy Department's
Office of Science. Hundreds of physicists are facing layoffs, and America's promised contribution of $160 million for
international nuclear fusion research was cut to zero.
All this led the Energy Department's under secretary for science, Ray Orbach, to remark over the weekend that "we are now at
a perilous moment in the history of funding for science in the United States."
The Energy Department's newly proposed $4.7 billion science budget for the 2009 fiscal year, beginning in October, is in some
ways a case of "back to the future." The request represents an 18.8 percent increase over the current year's appropriation.
Support for the fusion project known as ITER is set at $214.5 million, with officials ruefully noting that last year's budget
reversal "will impact the schedule and increase the U.S. costs." Funding is restored as well for Fermilab's NOvA detector and
preparations for the International Linear Collider - two projects that went into limbo due to last year's congressional cuts.
Kei Koizumi, who analyzes science policy issues for the American Association for the Advancement of Science, said the broad
strokes appeared to follow through on Bush's State of the Union pledge to beef up support for the physical sciences. He
cautioned, however, that Fermilab and the Energy Department's other national laboratories will still have to weather some
tough months ahead..
"If those labs can get through this year, and appropriations follow the requests, then starting next year, those labs and those
physical programs will be in much better shape," Koizumi told me.
That's a big if. Over the past seven years, Bush has repeatedly faced criticism for his approach to scientific issues such as
global warming and stem cells - but on this issue, he's the one who looks like the champion of science, while members of
Congress come off looking like Neanderthals.
Big science could still lose out to congressional tinkering, driven by the desire to make up for cuts elsewhere. For example, this
Reuters story notes that while proposed spending on high-energy physics, nuclear physics and basic energy sciences rose 19
percent to $1.57 billion, the budget for low-income energy assistance (through Health and Human Services) was reduced 22
percent to $2 billion.
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Although ITER funding was cut last year, this year they have gained funding, but the program will shut down if the funds are not
received
American Institute of Physics, 2/11/08
http://www.aip.org/fyi/2008/019.html
In an attempt to get the Department of Energy's Office of Science budget back on track, the Administration has requested an 18.8
percent increase for the fiscal year starting November 1. Under this request, funding for the Office of Science would increase by
$748.8 million, from $3,973.1 million to $4,722.0 million. The Office of Science is one of the three components of the American
Competitiveness Initiative.
The Department of Energy's budget would see the largest increase in five years under this proposal. Departmental funding would
increase by $1.13 billion to $25.0 billion. Funding for all of the department's primary functions - science, energy, defense,
environment, and management - would increase. Of note is the final exhibit in a department-wide overview of the budget which
included the statement, "Budget Proposal is Focused on Our Priorities." Above other priorities, such as "expanding nuclear power" and
the transformation of the nuclear weapons complex was "Investing in American Competitiveness in the 21st century by continuing to
focus on the physical sciences."
Components of the FY 2009 request for the Office of Science follow, with additional comments from a briefing by Under Secretary
for Science Raymond Orbach. For detailed information on the request for each program see
http://www.science.doe.gov/obp/FY_09_Budget/FY_09_Budget.htm
BASIC ENERGY SCIENCES: Up 23.5 percent, or $298.3 million, from the FY 2008 appropriation of $1,269.9 million to the FY
2009 request of $1,568.2 million. In commenting on this program, Orbach said "we listen to Congress," announcing a $100 million
request for a new program, "Energy Frontier Research Centers." The request fully funds the department's light sources.
FUSION ENERGY SCIENCES: Up 72.1% or $206.5 million, from $286.6 million to $493.1 million. Orbach commented on the
"bitter blow" to the program when ITER funding for this year was zeroed, adding that program officials were "doing our best to stay
alive." The request does not make-up for the loss of ITER funding this year, Orbach saying "the money is lost."
HIGH ENERGY PHYSICS: Up 16.8 percent or $115.6 million, from $689.3 million to $805.0 million. Orbach spoke of this being a
"very difficult year" for the program with "significant layoffs" because of funding reductions. The proposed budget, he said, "gets us
back on track."
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Link – General
Any type of federally funded research will draw from DOE funds
Michael S. Lubell, American Physical Society 2008
http://www.aaas.org/spp/rd/08pch8.htm
Today, the Department of Energy is one of the principal investors in federal R&D. Among the government agencies, it ranks
first in supporting physical sciences research and first in supporting national facilities. It ranks second in mathematics and
computer science. Its research programs play an extraordinarily important role in training the next generation of scientists and
engineers. University researchers, for example, receive slightly more than 15 percent of the Office of Science budget directly,
and in many fields, including the life sciences, they rely heavily on the facilities DOE operates at its national laboratories.
Traditionally, about half of DOE's R&D budget is allocated to developing, building and operating federally funded research
and development centers (FFRDCs), including multipurpose, specialized civilian and national weapons laboratories. These
centers, long regarded as jewels in the nation's R&D enterprise, contain many large facilities, such as synchrotron light sources,
neutron reactors, specialized accelerators and super computers, which are used by scientists and engineers in universities,
industry and other federal research agencies.
The FFRDCs also provide excellent opportunities for interdisciplinary activities. Today, for example, biomedical researchers
constitute more than 40 percent of the users of the synchrotron-radiation facilities, developed and maintained by accelerator
physicists, optical scientists, vacuum engineers and computer scientists. And teams of scientists at FFRDCs, drawn from
different fields, tackle complex problems ranging from the environment to nuclear safeguards.
The missions of the FFRDCs also evolve over time to meet changing needs and to take advantage of technological advances.
The Stanford Linear Accelerator Center (SLAC), for example, developed for high-energy physics in the 1960's, today devotes
an increasing fraction of its resources to the material sciences, biological sciences and cosmology.
Some research fields could not survive in the United States without the FFRDCs. The particle accelerator at Fermi National
Laboratory, for example, is the center of American experiments in high-energy physics, while the Relativistic Heavy Ion
Collider (RHIC) at Brookhaven National Laboratory and the Continuous Electron Beam Accelerator at Thomas Jefferson
National Laboratory represent a major focus of the nuclear physics community.
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The DOE will lose funding to any renewable energy affs
DOE, No Date
http://www.doe.gov/organization/index.htm
The DOE is principally a national security agency and all of its missions flow from this core mission to support national
security. These various missions are managed by Program Offices at DOE.
Office of Civilian Radioactive Waste Management
The mission of the Office of Civilian Radioactive Waste Management is to manage and dispose of high-level radioactive waste
and spent nuclear fuel in a manner that protects health, safety and the environment; enhances national and energy security; and
merits public confidence.
Office of Electricity Delivery and Energy Reliability
The mission of the Office of Electricity Delivery and Energy Reliability is to lead national efforts to modernize the electric
grid, enhance the security and reliability of the energy infrastructure, and facilitate recovery from disruptions to the energy
supply.
Office of Energy Efficiency & Renewable Energy
The Office of Energy Efficiency and Renewable Energy is working to provide a prosperous future where energy is clean,
abundant, reliable, and affordable.
Office of Environmental Management
The Office of Environmental Management (EM) works to mitigate the risks and hazards posed by the legacy of nuclear
weapons production and research.
Office of Fossil Energy
Ensuring that we can continue to rely on clean, affordable energy from our traditional fuel resources is the primary mission of
DOE's Office of Fossil Energy.
Office of Legacy Management
The Office of Legacy Management (LM) manages the Department’s post-closure responsibilities and ensures the future
protection of human health and the environment.
Office of Nuclear Energy
The Office of Nuclear Energy mission is to support the nation’s diverse nuclear energy programs.
Office of Science
The Office of Science is the single largest supporter of basic research in the physical sciences in the United States, providing
more than 40 percent of total funding for this vital area of national importance.
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Funding for gas and oil R&D would be the first to go because the DOE is
already trying cut these programs despite funding increases due to a focus ACI
Kei Koizumi, (Kei Koizumi is director of the R&D Budget and Policy Program at the American
Association for the Advancement of Science (AAAS), M.A. from the Center for International Science,
Technology, and Public Policy program at George Washington University and received his B.A. from
Boston University in Political Science and Economics.) American Association for the Advancement of
Science 2008,
http://www.aaas.org/spp/rd/rd09main.htm
The Department of Energy's (DOE) Office of Science would be a clear winner in the 2009 budget among R&D agencies
because of its key role in the President's American Competitiveness Initiative (ACI). R&D in DOE Science would climb 21
percent from the final 2008 appropriation to $4.3 billion, the largest percentage increase among the R&D funding agencies, in
an effort to keep the office on track to double its budget between 2006 and 2016 after appropriations setbacks the last two years
(see Table II-11). Most Science programs would receive substantial increases to hit historic highs, but these gains depend
crucially on the outcomes of 2009 appropriations.
- The total DOE R&D portfolio would soar 8.9 percent or $858 million to $10.5 billion because of the large Science increase,
and smaller increases for DOE's energy and defense R&D portfolios.
- DOE's energy-related R&D would total $2.4 billion, a slight increase after enormous increases in 2007 and 2008. Investments
in renewables such as biomass and nuclear energy would show strong gains. In fossil fuels, coal R&D would soar 26 percent to
$624 million, including a 25 percent boost to $149 million for carbon sequestration research and a doubling of funding for the
recently restructured FutureGen project to $156 million. But DOE once again proposes to eliminate funding for gas and oil
technology R&D, and to cancel $50 million in mandatory funding for a deepwater oil and gas exploration R&D program.
DOE R&D IN THE FY 2009 BUDGET
President Bush's American Competitiveness Initiative (ACI) and Advanced Energy Initiative (AEI), both set for their third
years in 2009, have made the Department of Energy's (DOE) R&D programs a high priority within an increasingly tight
domestic budget. DOE's Office of Science is the largest federal sponsor of physical sciences research and is thus one of three
federal agencies (the other two are the National Science Foundation and the National Institute of Standards and Technology
laboratories) that would receive substantial increases to fulfill the ACI's goal of increasing federal investments in basic physical
sciences research. DOE's energy R&D portfolio is a key Administration and congressional priority that received enormous
increases in 2007 and 2008.
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U.S. Department of Energy (DOE) Secretary Samuel W. Bodman today announced the appointment of Steven J. Morello to be
Director of DOE’s newly formed Office of Indian Energy Policy and Programs. As Director of this office, Mr. Morello will
work to implement and manage energy planning, education and efficiency for American Indian tribes.
Also today, the Secretary announced that DOE’s Office of Energy Efficiency and Renewable Energy would make available a
total of up to $2 million for 15 Native American tribes and Alaskan villages that have been selected for negotiation of awards
that support the advancement of renewable energy technologies on tribal lands and rural Alaskan villages.
“The creation of the Office of Indian Energy Policy and Programs will further assist the Department in reaching all Americans
in promoting clean, reliable and affordable energy,” Secretary Bodman said. “I look forward to working with Steve to advance
and promote clean energy, changing the way we power this nation.”
The Indian Energy Policy and Program Office will reside within DOE’s Office of Congressional and Intergovernmental Affairs
where Mr. Morello will also continue to serve as Deputy Assistant Secretary for Intergovernmental and External Affairs. Most
recently, Mr. Morello founded Native Insurance Agency LLC (NIA), a Small Business Association-certified, minority-owned
small disadvantaged business, where he served as its Managing Member. Prior to NIA, Mr. Morello worked in his own law
firm, Native Law Group PC, representing his tribe, the Sault Saint Marie Tribe of Chippewa Indians, among others.
In 2001, Mr. Morello was nominated by President George W. Bush, and later confirmed by the Senate, to be the General
Counsel of the U.S. Department of the Army. In that position, he served as the legal advisor to the Secretary of the Army and
the Army’s Chief Legal Officer. A Georgetown University graduate, Mr. Morello received his law degree from the University
of Detroit Law School, and earned a Master of Science in Business Administration degree from Boston University. Mr.
Morello also earned a Master of Arts in Pastoral Studies from Sacred Heart Major Seminary in Detroit, Michigan.
As part of DOE’s ongoing commitment to work with Native American tribes and Alaskan villages, the $2 million Secretary
Bodman announced today will be invested, subject to negotiations, in renewable energy and energy efficiency projects on tribal
lands that support President Bush’s Advanced Energy Initiative, which challenges Americans to change the way we power our
homes, offices, and vehicles.
“The Department of Energy is committed to encouraging and helping groups develop and deploy clean energy sources,”
Secretary Bodman said. “Providing support for Native Americans to explore and employ clean, renewable energy technologies
will help increase efficiency and provide for a cleaner environment.”
Of the 15 Native American tribes and villages whose projects have been selected for negotiation, six will study the feasibility
of utilizing renewable energy technologies on tribal lands; and nine projects will take initial steps toward implementing
renewable energy and energy efficiency projects on tribal lands. The selected projects will receive both financial and technical
assistance from DOE. Since 2001, DOE has provided $12.4 million for 76 tribal energy projects, with tribes contributing an
additional $3.6 million. Read more on DOE's Tribal Energy Program.
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Energy Under Secretary Orbach: "We Are Now at a Perilous Moment in the History of Funding for Science in the United
States"
In remarks delivered yesterday to the Universities Research Association, Energy Under Secretary for Science Raymond L.
Orbach was clear: "Though you have heard this phrase before, we are now at a perilous moment in the history of funding for
science in the United States."
rbach's comments made it clear that legislative actions have real-world consequences: failure to enact the President's FY 2008
request for the Office of Science will be felt keenly in the research programs that the Office of Science supports. Reduced
budgets will result in the elimination of funding for more than 4,300 Ph.D.'s, graduate students, and others from what was
envisioned in the FY 2008 request.
Selections from Orbach's presentation follow; his entire speech may be read at
http://www.er.doe.gov/News_Information/speeches/speeches/08/SC08.htm Note that his presentation on this site includes two
figures: the first, "Office of Science; FY 2008 Appropriation", the other, with new information, entitled "Office of Science; FY
2006 - FY 2008;Impact on Scientific Employment" Headings have been added to the below excerpts:
FY 2008 OUTCOME:
"Though you have heard this phrase before, we are now at a perilous moment in the history of funding for science in the United
States. I speak from the perspective of the Director of the Department of Energy Office of Science, and as Under Secretary for
Science, but I believe I also represent the views of other leaders of the federal agencies that support science.
"I refer you to the consequences for the funding for science of the Fiscal Year (FY) 2008 Omnibus Bill, and the preceding year-
long FY 2007 Continuing Resolution. Both failed to provide adequate funding for the physical sciences in the United States
and for many other fields of science. The President's Budget Request for FY 2009, in the context of the American Competitive
Initiative, or ACI, will again be a vote of confidence for the three federal agencies that are the primary supporters of the
physical sciences: the Office of Science within the Department of Energy, the National Science Foundation, and the core
research component of the National Institute of Standards and Technology. The President's commitment to support of long-term
basic research continues to be evident in this budget request, as it has been in previous requests. Indeed, in his State of the
Union Address on Monday, the President devoted some of his precious time to state:
"'To keep America competitive into the future, we must trust in the skill of our scientists and engineers and empower them to
pursue the breakthroughs of tomorrow. Last year, Congress passed legislation supporting the American Competitiveness
Initiative, but never followed through with the funding. This funding is essential to keeping our scientific edge. So I ask
Congress to double federal support for critical basic research in the physical sciences and ensure America remains the most
dynamic nation on Earth.'
"I have never heard before such support for the physical sciences from a President of the United States. But if the FY 09
enacted budget proves similar to FY 07 and FY 08, a "three-peat," the future of the physical sciences will be in jeopardy.
Opportunities will be lost forever: for science, and our country."
[At this point, Orbach quoted an op-ed by Intel Chairman Craig Barrett]
"I needn't remind this group what happened in the FY 2008 Omnibus Bill . . . . The President's request for the ACI, a trajectory
that would have led to a doubling of the budgets of the NSF, the DOE Office of Science, and NIST, was, with a few exceptions,
at best ignored. For the Office of Science, the budget without earmarks was reduced by $500 million from the President's
request, and is only 2.6% above FY 07, which itself was down by $300 million from the President's FY 07 request. The loss of
more than three quarters of a billion dollars for the physical sciences for the Office of Science will never be recovered. Worse,
specific areas of science within the physical sciences were marked for major reductions from the President's request. I speak of
High Energy Physics for which the enacted FY 08 budget was $63.5 million less than enacted in FY 07, and by $94 million
from the President's request for FY 08. Fusion Energy Sciences was reduced by $32.4 million from FY 07, and by $141 million
from the President's request for FY 08, zeroing our Nation's contribution to ITER construction. Nuclear Physics was slightly
increased by $10 million from FY 07, but cut by $38.6 million from the President's request for FY 08. Finally, the budget for
Basic Energy
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Sciences was increased by $19.7 million from FY 07, but cut by $229 million from the President's request, eliminating funding
for basic research energy initiatives such as solar and electrical energy storage. To be fair, the budgets for Biological and
Environmental Research and Advanced Scientific Computing Research were augmented above the President's request.
"Nevertheless, the consequences of the FY 2008 Omnibus Bill for the U.S. scientific workforce are substantial. . . . Office of
Science funding for Ph.D.'s, graduate students, and others was decreased from the President's Request by over 4,300. This at a
time when other nations around the world are increasing their scientific workforce.
"The budget decisions that led to these consequences were carefully drawn. They were not the result of hasty last-minute
actions. They represent the will of the people, as expressed through their elected representatives."
FY 2009 BUDGET REQUEST:
"But enough of the past. What's done is done, and we need to move on. The President's request for FY 09 will be wonderful,
again, for the physical sciences. While I can't go into details here, I can say that it will continue the funding request consistent
with the American Competitiveness Initiative and the America COMPETES Act. The problem for all of us is that, faced with
essentially flat funding for the physical sciences in FY 08, the President's Request for FY 09 will appear as a very large
percentage increase for the three ACI agencies. The danger is that basic research in the physical sciences will again be 'donors'
to other programs.
FAILED ATTITUDE:
"Compounding this danger is that we scientists tend to regard the proposed increases for the physical sciences under the
American Competitiveness Initiative and the America COMPETES Act as an entitlement. That attitude has failed us. Our
lawmakers have clearly signaled where they want to put taxpayer dollars. If we are to avoid a repeat in FY 09 of what
happened in FY 08, we need to actively make the case for the support of long-term basic research across those fields that have
historically represented U.S. world leadership. Our fellow citizens must understand that these investments in basic research
have held the key to America's prosperity and strength in modern times. As Vannevar Bush wrote to President Truman more
than half a century ago: '.without scientific progress no amount of achievement in other directions can insure our health,
prosperity, and security as a nation in the modern world.'
FURTHER DETAILS ON THE FY 2009 REQUEST:
"The President's FY 09 request for the Office of Science will continue to support the full spectrum of physical science basic
research. It will restore the ACI funding trajectory for High Energy Physics, for Nuclear Physics, for Basic Energy Sciences,
and for Fusion Energy Sciences, including major support for ITER construction.
NEW APPROACH NEEDED THIS YEAR:
"But the President's vote of confidence in us will go for naught if we regard his Budget Request as 'a done deal' The final
congressional action on the FY 09 budget will not be a free ride. Our community must make clear to Congress why it is critical
for the Nation's future that the physical sciences be supported at least at the level of the President's request. Failure to do so will
yield more of the same we experienced in FY 07 and FY 08, and the 'three-peat' will have the potential of continuing the flat-
to-declining trajectory into the indefinite future.
"The message of this year's appropriation is unmistakable. The American public, through its duly elected Congress, has made
its priorities clear: short-term applied research wins over the full spectrum of long-term basic research. It is our job to make
clear to the American people that our country will 'run out of gas' if the latter is not supported. In the absence of breakthroughs
in fundamental science, current technologies will simply not be able to meet the energy and environmental challenges that
loom ahead for our Nation. Progress in basic science is essential to America's continued prosperity and strength in the twenty-
first century.
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Pulling ITER funding kills U.S. soft power and scientific innovation
American Physical Society, December 19, 2007, Press Release, “APS Urges Congress and White House to
Revisit Fiscal Year 2008 Science Funding in January”, http://www.aps.org/about/pressreleases/funding-
fy08.cfm
Finally, apart from its failings on global competitiveness and energy, the omnibus legislation also places at
grave risk committed U.S. participation in two large international scientific collaborations. Just one year ago,
the United States made a major commitment to the construction of the International Thermonuclear
Experimental Reactor (ITER). Today, Congress has pulled the plug. In so doing, it critically damages American
credibility as a reliable scientific partner throughout the world and compromises the nation's standing as a host
of future international scientific facilities. Congress has also cut the lifeline of the International Linear Collider,
which represents the future of American high- energy physics. This action sends a strong message to the world:
The U.S. is prepared to jettison support for one of our flagship areas of science that probes fundamental laws of
the universe.
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New ITER funding will only keep it going for 2008, new funding in 2009 is key
Frank Munger, 7/2/08
http://blogs.knoxnews.com/knx/munger/2008/07/sustenance_for_iter.html
A Dept. of Energy spokesman confirmed today that $15.5 million of the supplemental appropriations for the
Office of Science will support the U.S. ITER office (based in Oak Ridge).
The money, of course, will help sustain activities for ITER after the U.S. effort got mangled in the fiscal 2008
budget, raising doubts about the continued participation in the international fusion project. I've written on this
topic on multiple occasions, including a late-April post based on a talk with U.S. project chief Ned Sauthoff.
Jeff Sherwood of DOE also said there's $2 million to boost spending levels for the Spallation Neutron Souce.
I talked earlier in the day to ORNL Director Thom Mason, who at the time said he didn't know how much
money was coming for ITER but indicated some amount was likely to keep the team intact and help bridge the
project until the 2009 budget is in place. More than $200 million is proposed for U.S. spending on ITER in '09,
although that's uncertain to say the least.
Mason said it was particularly important to get some additional funding this year because of the likelihood that
a continuing resolution could be in effect for the first six months of fiscal 2009.
Here's what the legislation said about the supplemental funding for DOE's Office of Science: "The Department
of Energy is instructed to utilize this funding to eliminate all furloughs and reductions in force which are a
direct result of budgetary constraints. Workforce reductions which are a result of completed work or
realignment of mission should proceed as planned. This funding is intended to maintain technical expertise and
capability at the Office of Science, and may be used for National Laboratory Research and Development
including research related to new neutrino initiatives. Funding for research efforts shall not be allocated until the
Office of Science has fully funded all personnel requirements."
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French relations
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French relations
The best example is the investigation of an Algerian man named Ahmed Ressam. He was arrested by chance in December 1999
at the United States-Canada border near Seattle with a cache of explosives in his car. Investigators then said he was planning to
bomb the Los Angeles airport to mark the millennium.
Bruguiere had opened an investigation on Ressam back in 1996 because of his role in a group trafficking false Moroccan
passports. The judge discovered that the main members of the group were actually involved in much more serious operations.
The investigation eventually linked the men, who were mostly North African immigrants, to Al Qaeda leaders such as Abu
Zubaydah.
“This helped us understand Al Qaeda and realize the United States [including U.S. territory] was their prime target,” Bruguiere
said, noting that many of his probes started with a simple discovery of false passports. “This analysis was not shared by others,
including the United States and the United Kingdom.”
But after Ressam was arrested on his way from Canada and his plot was uncovered, American officials realized the threat was
real, their knowledge was poor and border controls were largely ineffective.
The French authorities provided the prosecution team with tons of documents. The Justice Department even took the highly
unusual step of asking Bruguiere to testify as an expert witness.
Although the Seattle judge in charge of Ressam’s case eventually decided against having Bruguiere testify in public because he
was himself conducting an investigation of Ressam, the French expert nevertheless briefed the parties and helped land a guilty
verdict and a life sentence.
Ressam entered a plea bargain and has provided a wealth of intelligence on terrorist networks operating in the United States
and in Canada. French officials were allowed to attend his debriefing sessions as a reward for their assistance.
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US-INDIAN Relations
ITER is key to U.S. Indian relations
Institute of Peace and Conflict Studies, New Delhi-based think tank aims to inform, analyze, and nurture
debates on crucial strategic choices affecting South Asia., Special Report 19, May 2006
“INDO-US RELATIONS”, www.ipcs.org/countSpecialReport.jsp?x=19)
Experimental Reactor (ITER) energy project
India’s inclusion as a full partner in the ambitious multinational ‘International Thermonuclear Experimental Reactor’ (ITER)
energy project was an acknowledgement of being a responsible nuclear state with advanced nuclear technology. The decision
was taken by six partner countries -US, European Union, Russia, China, Japan and South Korea. "The decision recognizes that
India can significantly contribute to such endeavours and also is recognition that India is a country with advanced nuclear technology,
including in the field of fusion research," said a spokesman for the External Affairs Ministry. ITER is the experimental step between the latest studies of
plasma physics and future electricity – producing fusion power plants. The main ITER facility will be built in Cadarache in France by 2016 and all partners
will participate in its construction, development and research. 13
Bush visit to India and the Nuclear agreement of March 2006
The Indo-US relationship proceeded at a furious pace in President Bush’s second term. It started with Condoleezza Rice's visit to New Delhi in March 2005,
when she expressed the American desire to help India achieve major world power status and stressed the need for an energy dialogue. This was followed by the
new framework for the US-India defense relationship agreement signed on June 28 2005, the completion of the Next Steps in Strategic Partnership (NSSP),
and the finalization of the George Bush-Manmohan Singh joint agreement on July 18 2005. The joint pact included the nuclear deal that is now the focus of
controversy in both countries. This was followed by India's surprise vote in the IAEA where, along with western nations, it envisaged that Iran would be
referred to the Security Council if it did not satisfactorily account for its suspect nuclear activities. The US Administration was determined to implement the
July 2005 civilian nuclear deal it had entered into with India. US Secretary of State Condoleezza Rice made it clear, once again, that the US was committed to
helping India with advanced technology and equipment to produce sufficient nuclear energy for its fast growing economy. She obviously 13 Editorial “India
becomes partner in nuclear reactor project” Daily Times, 8 December 2005 wanted to tell the skeptics in the US that India's search for nuclear energy, which is
cheaper and cleaner, deserved all-out American support as India has had a clean track record so far, as nuclear non-proliferation is concerned, despite not being
a signatory to the Nuclear Non- Proliferation Treaty. What Dr Rice said in Washington, while interacting with journalists, was also aimed at convincing the
detractors of the Indo- US nuclear agreement, in India , that there was nothing sinister about the deal. 14 India and the United States remained engaged in
intensive negotiations to try and clinch a civilian nuclear deal, even as U.S. President George.W.Bush landed in New Delhi on March 1st.It was the fifth visit
by an American President to India. Interestingly, during a stop over in Kabul, Mr. Bush said that officials had been talking to the Indians even from his special
aircraft, and these discussions would continue in New Delhi. Reiterating that it was a difficult issue for both governments, the President said that the two sides
would continue to have a dialogue and work towards an agreement.15 President Bush andPrime Minister Manmohan Singh were involved in lengthy
discussions, shortly after the arrival of President Bush. The meetings revolved around
the common values that bind India and the United States together: the commitment to democracy, to the institutions of freedom -- free press, freedom of
religion, independent judiciary, and the like -- and the important message that the United States and India had to stand together as advocates for these
institutions, and subsequently provide the world with a living example of the strength of such institutions. The discussion also included issues like the War on
Terror, trade issues especially the impending entry of Indian mangoes in to American markets, the Doha round conclusions and the agriculture knowledge
initiative.16 The special emphasis, though, lay on energy issues. The discussion largely concentrated around India's need for energy, its plans to dramatically
enhance its ability to provide secure energy to its people, and its desire to do so in a way that avoided proliferation risks and did not create environmental
problems. The American President talked about his advanced energy initiative and his hope that technologies arising from
initiative could be shared with India and other countries. The meeting of the two leaders with the CEO forum, soon after, once
again reemphasised to them that energy issues were the crucial cog in the wheel of relations between the two countries.
President Bush’s visit to India also included visits to an American funded agricultural institute and the business school in
Hyderabad. He cleverly avoided any visits to American outsourcing multi national companies, a topic of hot debate and controversy back in the US.17 Under
the historic nuclear agreement signed on March 2, 2006, India has agreed to classify 14 of its 22 nuclear facilities as civilian, and put these under the
permanent supervision of the IAEA. This should, then end a 30- year long moratorium on the sale of nuclear fuel and reactor components by the US to India.
The export of nuclear material, reactors, and their major components from the US, would require a Section 123 amendment of the Atomic Energy Act.
Technically, India is a non- nuclear weapon state and does not have the full scope of safeguards. Under the terms of the Atomic Energy Act, Congress has to
approve an agreement for cooperation and needs to pass a joint resolution of approval. The Administration, alternatively, may seek to amend certain portions of
the Atomic Energy Act, in particular Sections 128 and 129, both of which includes non proliferation criteria. 18 The nuclear deal, though, accords acceptance
to the military and the security component of the Indian nuclear program, by the sole superpower and torchbearer of the nuclear non-proliferation regime, the
US. The Indo-US deal also makes India's nuclear weapons program acceptable, legitimate and nonthreatening to the existing nuclear order unlike those of Iraq,
North Korea and Iran. The nuclear deal envisages an alliance, albeit informal, between the US and India deriving from a real convergence of mutual security
interests. The nuclear deal also seeks to enhance India's nuclear security via nuclear arms control. By agreeing to separate its large
civilian and small military nuclear programs, India has acknowledged its commitment to minimum nuclear deterrence, which provides for its nuclear
security interests vis-à-vis China and Pakistan. India has readily agreed to continue its voluntary moratorium on nuclear testing and agreed to participate in
future negotiations on the FMCT. India has also committed to prevent the spread of nuclear technologies by strict export control laws, which are already in
place.19
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US-INDIAN Relations
<<CONTINUED FROM PREVIOUS PAGE>>
Institute of Peace and Conflict Studies, New Delhi-based think tank aims to inform, analyze, and nurture
debates on crucial strategic choices affecting South Asia., Special Report 19, May 2006
“INDO-US RELATIONS”, www.ipcs.org/countSpecialReport.jsp?x=19)
Space Launch Agreement in the Offing
India and United States are also poised to take their strategic relationship a notch higher. They will soon sign a crucial space
launch agreement to allow India to launch US-made satellites, not just from US, but from other countries that use American
components in their satellites. The understanding will help the country's premier space body, Indian Space Research
Organization (ISRO), boost its earnings. It will also help the once estranged democracies get into a tighter strategic partnership.
Some last-minute refinements in the agreement, relating to the pre-launch treatment of US satellites on Indian rockets are being
worked out. But, these are procedural issues which both sides expect to be sorted out at the next meeting of the space working
group. India has already accepted two US payloads for the ‘Chandrayaan’ mission. Many such joint endeavours are now expected, and together
with these, a closer exchange of strategic space technologies.20
Conclusion
One of the major objectives of the United States in entering into the Indo-US nuclear cooperation agreement is to bring about an early freezing of the Indian
weapon-usable nuclear materials stock at the minimum possible level. India, in turn, obviously wants to retain all the accumulated inventory of such materials,
as well as the facilities to produce the additional material we consider essential for a minimum credible deterrence, in compliance with IAEA safeguards.
Obviously, each country wants to maneuver the separation plan to suit its specific objective. Despite the façade that the deal is progressing well, it is clear that
most of the originally perceived differences between the two sides are very much present even now. It appears that the US side feels that certain facilities,
especially reactors, which India has proposed to retain in the strategic group, really belong to the civilian list. In addition, it is clear that the US considers
India's time schedule for bringing these facilities in phases into the civilian list as too stretched out, and that India should indeed place them under safeguards
at a more rapid pace. The nuclear deal, though, will improve India's global standing. India's deal with the US for transfer of nuclear technology will help it in a
big way. As non-NPT states, or nonnuclear weapons states with nuclear weapons, India, Pakistan and Israel – a strange trio, indeed - have much to defend to
the rest of the world. They have no choice but to stick together whenever questions of comprehensive safeguards come up. There was even an occasion when
Pakistan changed its vote to join India and Israel. When the Arab world gangs up every year to call upon states to accept comprehensive safeguards, essentially
to focus attention on Israel, it has to contend with Indian diplomatic skills as Israel hides behind us. These strange maneuvers could stop if the India-US
nuclear deal is approved by the US Congress, and the Nuclear Suppliers Group, and comes to fruition. India will then cross over from the group of nuclear
mavericks to join the designated nuclear weapon states in its new capacity as a responsible state with advanced nuclear technology.
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US-INDIAN Relations
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US-INDIAN Relations
U.S. india relations can solve for terrorism and the conflict over Kashmir
Bruce Riedel, 12/18/2006, Senior Fellow at the Saban Center for Middle East Policy, Brookings Institution, “India and the United
States: A New Era,” http://www.brookings.edu/views/op-ed/fellows/riedel20061218.htm
Now that President Bush has built on this foundation, he should use the new strategic partnership to move beyond crisis management
between India and Pakistan to try to help the two countries resolve the underlying issue that has brought them repeatedly to conflict:
Kashmir. America has avoided dealing with the Kashmir issue for decades, both because of its complexities and because India
opposed outside involvement, preferring to deal bilaterally with Pakistan. This approach has not worked; the problem has gotten worse
and has repeatedly taken the subcontinent to the brink of disaster.
Now is the time for quiet American diplomacy to exploit our stronger ties with India and our improved relations with Pakistan since
9/11 to try to resolve the Kashmir quarrel. It is in the self interest of all three nations to do so. The timing is particularly fortuitous
since India and Pakistan have begun their own bilateral dialogue to improve relations since they were last at the brink of war in 2003.
That dialogue has already produced some modest confidence-building measures in Kashmir but has not really engaged the underlying
issues.
Pakistan's President Pervez Musharraf says he is ready to engage India on Kashmir and has put some interesting ideas on the table. He
should be tested now by both the U.S. and India. Helping him resolve Kashmir would also help him end Pakistan's long relationship
with jihadist terror groups which have dangerous relationships with al-Qaeda. If Kashmir moved toward peace, Pakistan could more
easily put those groups out of business and isolate al-Qaeda. A deal should not threaten India's territorial integrity; rather it should
focus on improving the Kashmiri's lives.
Now that the nuclear deal is done, President Bush should make Kashmir a major part of his dialogue with India and Pakistan. Nudging
them both toward a deal on Kashmir will not be easy, but the time may be ripe to try. Preventive diplomacy in South Asia in the next
two years would be an enduring legacy for George W. Bush.
U.S. Indian nuclear co-operation improves relations
Bruce Riedel, 12/18/2006, Senior Fellow at the Saban Center for Middle East Policy, Brookings Institution, “India and the United
States: A New Era,” http://www.brookings.edu/views/op-ed/fellows/riedel20061218.htm
President George W. Bush has signed legislation allowing the U.S. to sell civilian nuclear technology to India. In July, the relationship
between the U.S. and India was bolstered when President Bush and Prime Minister Manmohan Singh announced the framework for
this landmark deal. The new year offers an opportunity for a new era in U.S. relations with India and a new agenda in the "strategic
dialogue" that has been underway between Washington and Delhi for nearly nine years. While the agreement has its downside—it
could prompt other countries to seek similar exceptions to the nuclear Nonproliferation Treaty—it helps remove a 25-year-old obstacle
to furthering U.S.-Indian relations: disagreement over India's decision to become a nuclear-weapons state. For decades this one issue
has dominated U.S. and Indian diplomacy and prevented the world's oldest and largest democracies from dealing adequately with a
range of bilateral, regional, and global issues.
Ironically, it was the Indian nuclear tests in 1998 that began the process of change. Following India's tests, President Clinton initiated
an intensive dialogue—led by then-deputy secretary of state Strobe Talbott—to restrain its nuclear program. Talbott's discussions with
then-foreign minister Jaswant Singh began with a limited focus on proliferation, but expanded to crisis management during the 1999
Kargil war and then into a broad opening of the relationship that culminated in Clinton's watershed visit to India in 2000.
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ITER k heg
Loss of ITER kills U.S. heg
David Pace (Masters at University of California, Los Angeles, California, USA Department of Physics
and Astronomy, Doctorate Candidate in Experimental Plasma Physics, M.Sc., Physics, 2003, University
of the Pacific, Stockton, California, USA Department of Physics, B.S., magna cum laude Physics, 2002,
Honorary Teaching Award, UCLA Department of Physics and Astronomy, 2006-2007, Research
Mentorship Fellowship, UCLA, 2004-2005, Outstanding Teaching Assistant Award, UCLA Department of
Physics and Astronomy, 2004, Cota Robles Fellowship, UCLA, 2002-2003, Most Outstanding Senior, U.
Pacific Department of Physics, 2002, DOE Energy Research Undergraduate Laboratory Research
Fellowship, 2001, Dean’s Honor Roll, U. Pacific, 1998-2001) , 1/5/08
http://www.davidpace.com/physics/graduate-school/us-leave-iter.htm
The collection of circumstances now present do not bode well for ITER and they encourage renewed concern over U.S. fusion
and plasma research in general. It seems that history is repeating itself with regard to our role in ITER. An unwilling Congress,
the lack of powerful supporters, and economic pressures are aligned against a U.S. presence in ITER. The Government
Accountability Office has highlighted both the need for more fusion Ph.D.'s in the workforce and the fact that as many of half
of all plasma science and engineering Ph.D.'s leave the field (plain text, pdf). As a member of the group of graduate students in
this field I can positively state that our discussions focus on events like this ITER cut and the uncertainty in funding for this
type of research is a major motivation for moving to other sectors and very different careers. Supporting ITER encourages a
new generation of plasma scientists as much as cutting it leads these same people to other fields.
A broader issue remains: what happens if ITER is a rousing success and we were not involved? For a comparison, imagine that
the methods of AC and DC electricity generation and transmission had not been developed in the United States. The negative
impact on our industrialization and technological prowess is unimaginable. A successful ITER project with no U.S. assistance
will be very similar. The rest of the industrialized world will have a wealth of knowledge and ability in the field of fusion
driven electricity production@, along with the desire to feed their own national corporate interests with the first commercial
applications.
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China will be involved in the development of all the core technologies needed to build the world's biggest experimental nuclear
fusion reactor.
On Wednesday China signed a historic deal with the European Union, the United States, Russia, India, Japan and the Republic
of Korea to build the US$14 billion International Thermonuclear Experimental Reactor (ITER).
The project is believed to be the most expensive science experiment ever, with China contributing 10 per cent of the funding.
Scientists hope ITER will unlock the secrets of nuclear fusion, which could solve the world's energy crisis and bring an end to
global warming caused by burning fossil fuels.
Last night Yang Changchun, an engineer with China's ITER office, told China Daily that Chinese scientists will be involved in
12 of the project's key programmes, including manufacturing superconductors and power supply sets.
"China will take part in the research and development of all core technologies in this project," said Yang.
All participants are expected to ratify the agreement to build ITER by the end of the year, with construction beginning in
Cadarache, France, in 2007, said the Xinhua News Agency.
Under the new accord, which was signed in Brussels on Wednesday after three years of talks, the EU will pay 50 per cent of
ITER's total cost with the rest divided amongst the other participants.
The entire project is expected to last 30 years, with the first 10 years spent constructing the facilities.
Experts predict that by the end of the century 10 to 20 per cent of the world's energy could come from nuclear fusion.
Huo Yuping, the leading scientist in China's ITER Office, said it was ITER's significance in solving the energy problems
confronted by all humanity that had encouraged China to lend it's scientists to the project.
He added that the nation could also take advantage of ITER to develop related advanced technologies.
Although fusion experiments have only taken place in a few countries around the world, they could hold the key to unlocking
vast untapped supplies of energy.
Theoretically, a fusion power plant could generate 1,000 megawatts of electricity from only 1 kilogram of deuterium and 10
kilograms of lithium.
A conventional nuclear fission power station would need 500 kilograms of highly radioactive uranium to generate the same
amount of power, while a coal power station would need 10,000 tons of coal.
As scientists are able to extract deuterium from sea water, with fusion power the world's oceans would contain enough energy
to meet human use for the next 6 billion years.
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Coming after the designation in November 2005 of Ambassador Kaname Ikeda of Japan as the nominee director-general, this
means that the core of the management team of the prospective ITER organization is now in place.
ITER is an experimental reactor which will reproduce the physical reaction of fusing the nuclei of atoms that occurs in the Sun
and stars. Existing experiments have shown that it is possible to replicate this process on Earth. ITER aims to do this at a scale
and in conditions that will demonstrate the scientific and technological feasibility of fusion as a practical energy source.
All of today's nuclear power plants split heavy uranium atoms to generate power. ITER will use fusion, which involves heating
very lightweight atoms to above 100 million degrees Celsius - or 10 times the temperature of the Sun.
This creates a plasma gas in which particles that usually repel one another combine, and thereby yield enormous quantities of
energy. By caging the hot plasma with powerful magnets, scientists aim to keep the process going in much the same way that
the Sun, confined by gravity, burns on and on.
The development of the science and technology involved in this process is the basis of the European fusion program.
ITER scientists explain that nuclear fusion is safe for workers and for the population surrounding the ITER facility in France's
Cadarache forest.
A fusion reactor is like a gas burner, they say, the fuel which is injected into the system is burned off. There is very little fuel in
the reaction chamber at any given moment (about 1g in a volume of 1000 m3) and if the fuel supply is interrupted, the
reactions only continue for a few seconds.
Any malfunction of the device would cause the reactor to cool and the reactions would stop, they say.
The basic fuels - deuterium and lithium – and the reaction product - helium - are not radioactive.
The intermediate fuel – tritium – is radioactive and decays very quickly, producing a very low energy electron - Beta radiation.
In air, this electron can only travel a few millimeters and does not have the power to penetrate a piece of paper.
Nevertheless, the scientists explain, tritium would be harmful if it entered the body, so the facility will have very thorough
safety facilities and procedures for the handling and storage of tritium.
As the tritium is produced in the reactor chamber itself, there are no issues regarding the transport of radioactive materials.
Extensive safety and environmental studies have led to the conclusion that a fusion reactor could be designed in such a way to
ensure that any in-plant incident would not require the evacuation of the local population.
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Still, critics are uneasy. Some say ITER will draw more power from the French electricity grid than it will produce. Others say
it discourages conservation.
The French group Sortir du Nucléaire (Get Out of Nuclear) is the main French antinuclear coalition with a membership of over
700 organizations and more than 14,000 individuals. Spokesman Stéphane Lhomme told the "International Herald Tribune" last
August, "There's a hidden message behind the ITER project. That message is, 'Don't change any of your consumption patterns
because you'll soon have unlimited amounts of free power.' That's a big gamble."
Hermann of Friends of the Earth Europe sayd, "Even if fusion does come through as an option, it will still carry risks of
proliferation and radioactive contamination."
Friends of the Earth Europe is calling upon the European Commission to withdraw from the fusion project. The group says
funding should be channeled into EU research and development programs to develop sustainable and environmentally-friendly
energy technologies, like solar, wind and biomass.
This proposal has yet to be approved by the European Council and the European Parliament, and Friends of the Earth Europe is
calling on these institutions to reject the Euratom budget proposal.
In fiscal year 2006, the U.S. Department of Energy (DOE) allocated $25 million to ITER. President George W. Bush has
requested $60 million for the project in fiscal year 2007.
"As partners in ITER," said U.S. Energy Secretary Samuel Bodman today, "we are pursuing the promise of unlimited, clean,
safe, renewable and commercially available energy from nuclear fusion, which has the potential to significantly strengthen
energy security at home and abroad."
Raymond Orbach, who signed the agreement as director of the DOE Office of Science, said, "Initialing this agreement brings
us one step closer to a viable source of fusion power, with the potential to free the quickly growing global economy and
population from the looming constraints of conventional energy supplies and their associated environmental effects."
Orbach called ITER "the first stand-alone, truly international, large-scale scientific research effort in the history of the world."
The seven parties to the agreement represent more than half of the world's population, he notes.
Michael Mariotte, executive director of the Nuclear Information and Resource Service based in Washington, DC, has said,
"The ITER fusion reactor is a big-science boondoggle that has no energy payback. ITER will divert billions of dollars away
from real green energy solutions to the world's climate change crisis."
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ITER SAFE
The U.S. will probably desert ITER
David Pace (Masters at University of California, Los Angeles, California, USA Department of Physics
and Astronomy, Doctorate Candidate in Experimental Plasma Physics, M.Sc., Physics, 2003, University
of the Pacific, Stockton, California, USA Department of Physics, B.S., magna cum laude Physics, 2002,
Honorary Teaching Award, UCLA Department of Physics and Astronomy, 2006-2007, Research
Mentorship Fellowship, UCLA, 2004-2005, Outstanding Teaching Assistant Award, UCLA Department of
Physics and Astronomy, 2004, Cota Robles Fellowship, UCLA, 2002-2003, Most Outstanding Senior, U.
Pacific Department of Physics, 2002, DOE Energy Research Undergraduate Laboratory Research
Fellowship, 2001, Dean’s Honor Roll, U. Pacific, 1998-2001) , 1/5/08
http://www.davidpace.com/physics/graduate-school/us-leave-iter.htm
Finding and understanding the actual congressional material regarding this cut is difficult. It is easy to find media coverage of
the results but they will not say much about the ITER issue. A collection of the House Amendments to the bill provides the best
overview. With respect to ITER, the Joint Explanatory Statement says (emphasis added),
Funding under this heading in the amended bill includes $289,180,000 for Fusion Energy Sciences. Within Fusion Energy
Sciences, $162,910,000 is provided for Science, $93,504,000 for U.S. Facility Operations, an increase of $6,000,000 to be used
to increase facility operations at the three U.S. user facilities (i.e., the DIII-D, Alcator C-Mod, and National Spherical Torus
Experiment) $22,042,000 for Enabling R&D, an increase of $1,225,000 for materials research, $0 for the U.S. contribution to
ITER, and $10,724,000 for Enabling R&D for ITER. Funding under this heading in the amended bill includes $12,281,000 for
High Energy Density Physics. Funding may not be reprogrammed from other activities within Fusion Energy Sciences to
restore the U.S. contribution to ITER.
The removal of funds for our ITER contribution might normally be considered a temporary technicality if not for the final line
stating that money may not be transferred from other funds to pay the contribution. This suggests that the bill's intent is to
completely reacquire the $160 million originally reserved for ITER. I have not determined what is included as “Enabling
R&D” though I suspect that this money will allow those already being paid through U.S. ITER support to continue receiving
their wage.
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About $15.5 million of a special midyear appropriations package for science will go to support Oak Ridge-
based work on an international fusion project, and another $2 million will supplement the funding at the
Spallation Neutron Source.
Jeff Sherwood, a Department of Energy spokesman in Washington, confirmed the numbers Wednesday and said
the money is part of the $62.5 million approved by Congress to ease a funding crunch in DOE's Office of
Science. "The intent is to eliminate the need for furloughs," Sherwood said.
Oak Ridge is home to the U.S. effort on the International Thermonuclear Experimental Reactor, a huge project
that's being built in France. Besides the United States, the partners include Europe, China, Japan, Russia, Korea
and India.
The fiscal 2008 budget approved earlier by Congress slashed the spending for ITER - allotting only $10.7
million, instead of the proposed $160 million - and endangered U.S. participation in the project. U.S. Sen.
Lamar Alexander, R-Tenn., called the budget cuts an "embarrassing mistake" by Congress.
Oak Ridge National Laboratory Director Thom Mason said Wednesday the supplemental funding will be used
to keep the U.S. team together and sustain operations until the 2009 budget is approved. More than $200 million
is being sought for the ITER project in 2009.
Additional funds for this year were particularly important because the government may operate under a
continuing budget resolution for the first six months of fiscal 2009 and freeze spending levels or impose other
restrictions.
The money for the SNS will support operations at the Oak Ridge science
facility, which also had a funding shortfall in this year's budget.
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ITER SAFE/FEASIBLE
Fusion is entirely safe
ITER, 10/14/04
http://www.iter.org/safety_process.htm
The following explanation focusses on magnetic confinement of deuterium-tritium-fuelled plasmas, such as those in ITER, but
similar or even stronger arguments apply also to other fuel combinations and to laser fusion.
The fusion process is inherently safe.
Leak-tight confinement barriers are essential to produce fusion reactions. Equipment failure quickly leads to plasma
extinguishment.
No chain reaction is involved and the reaction is thermally self-limiting.
There is no danger of a large jump in plasma power output, since normal operation is close to pressure limits which already
maximise the number of fusion reactions that will occur. In ITER, because of experimental uncertainty, it is possible for the
plasma to operate at somewhat (<1.2) higher power levels than planned, but these can be easily brought under control in a
matter of seconds.
The fusion process is limited to a few seconds burn, without continuous refuelling.
Achieving low loss burn conditions is a delicate matter and requires many conditions to be satisfied - the failure or change of a
single one enhances plasma energy losses and terminates the burn. Halting the fuelling quickly extinguishes the plasma. In
ITER about 0.5 g of fuel is in the machine at any time, and the fuelling/exhaust rate is also about 0.5 g/s. Even if the exhaust
fails, the plasma is quickly poisoned by impurities, and extinguishes.
The power and energy densities in the reactor and plasma are low.
The main sources of energy which can damage ITER are pressurised coolant, chemical reactions (e.g. of leaking coolant and
hot materials, or of hydrogen and air), heat from the fusion reaction in the plasma, and magnetic energy in the coils. There are
no large stores of chemicals or other energy sources able to cause powerful explosions. ITER is designed such that its hardware
avoids the unexpected release from energy sources or mitigates the consequences of any such release to acceptable levels not
only for the general public, to ensure the ultimate safety of the plant, but also for plant operators, to protect their investment. To
help in these respects, ITER has large heat transfer surfaces and heat sinks which transfer and absorb energy, maintaining low
temperatures and avoiding melting of components. The same will be true in a power reactor, but the margins needed for ITER
should be able to be reduced, and the overall power density should be able to be increased.
The reaction products are either absorbed in surrounding structural or tritium-breeding materials (neutrons), or are
non-radioactive (helium).
In ITER nearly all materials around the plasma are to shield the surrounding equipment, whereas in a power reactor the bulk
will breed tritium from lithium-containing materials, ready to burn it in the plasma.
Activated structural materials from neutron irradiation are not mobile except dust and corrosion products which form
only a small fraction.
The neutrons produce activated waste materials. Dust is formed by sputtering from high energy particles in the plasma hitting
the surrounding material surfaces. Although not necessarily a problem itself, this dust can become contaminated with tritium.
Coolant channels can become corroded, especially in high nuclear radiation fields, and the corrosion can dislodge and be freed
if a coolant pipe breaks. In ITER the coolant chemical control system is capable of maintaining coatings of activated corrosion
products well below 10 kg per loop, with less than 60 g as loose material or ions in the coolant (these limits are used in
accident analysis). In a power reactor this aspect will be further optimised.
Negligible operational environmental impact.
The potential risk to the local environment is limited and is reduced as low as judged reasonably achievable by the independent
nuclear regulator in the country concerned.
Negligible long term environmental impact.
Neither the provision of fuel or plant hardware, nor its removal after use, places an intolerable and uncertain burden on current
or future generations.
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No trade off
Renewable Energies and Nuclear power won’t get cut, Bush has requested additional funding for both in
his budget request
Department of Energy, 2/4/08
http://www.doe.gov/news/5920.htm
U.S. Secretary of Energy Samuel W. Bodman today announced President Bush’s $25 billion Fiscal Year (FY) 2009 budget
request for the Department of Energy (DOE), an increase of $1.073 billion over the FY 2008 appropriation. This request will
continue investments to meet growing energy demand with clean, safe, affordable, reliable and diverse supplies of energy;
support the development of climate change technologies; advance environmental cleanup; and ensure the reliability of our
nuclear weapons stockpile. The President’s budget for DOE directly supports the development of cutting-edge carbon capture
and storage technologies (CCS); begins to transform the weapons complex to address 21st century challenges; and accelerates
technological breakthroughs to further the President’s Advanced Energy Initiative (AEI), and scientific leadership through the
American Competitiveness Initiative (ACI).
“This budget furthers President Bush’s comprehensive strategy to increase energy, economic, and national security by focusing
on accelerating technological breakthroughs, expanding traditional and renewable sources of energy, and increasing investment
in scientific discovery and development,” Secretary Bodman said. “From transforming the weapons complex to maintain the
utmost safety and reliability of our nuclear weapons stockpile, to issuing solicitations for loan guarantees to spur innovation in
advanced energy technologies, this budget enables the Department to continue to lay the foundation for a clean, safe, secure
and reliable energy future for all Americans.”
Among the President’s priorities funded in the FY 2009 budget request includes $1.4 billion to promote the expansion of safe,
emissions free nuclear power. DOE continues to actively work with industry partners to promote the near-term licensing and
deployment of America’s first new nuclear plants in more than 30 years. This budget also requests $648 million, the largest
budget request in over 25 years, for increased research in clean coal technology and demonstration of carbon capture and
storage for coal-fired power plants, an important component of the Administration’s Climate Change Technology Program.
Another key priority in the Department’s budget includes support of its Loan Guarantee program, which requests $19.9 million
for administrative expenses, and would be offset by collections in the same amount as authorized under the Energy Policy Act
of 2005 (EPAct). In addition, DOE requests an extension of its authorization to issue loan guarantees through FY 2010 and FY
2011, enabling commitments to guarantee loans under Title XVII of EPAct to total more than $38 billion from FY 2008
through FY 2011. These efforts, combined with plans to further expand the Strategic Petroleum Reserve to an ultimate
capacity of 1.5 billion barrels by 2029, will help achieve a more secure and reliable energy future for the nation.
The budget also continues to significantly invest in the President’s Advanced Energy Initiative (AEI) and the American
Competitiveness Initiative (ACI), both unveiled in President Bush’s 2006 State of the Union Address.
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ITER would create large amounts of waste that could be used for nuclear weapons
Green Peace 6/28/05
http://www.greenpeace.org/international/press/releases/ITERprojectFrance
Greenpeace deplores the agreement by the Representatives of the Parties to the International Thermonuclear Experimental
Reactor (ITER) (1) to construct one of the world's largest nuclear fusion experiments in Cadarache, Southern France. The
project, estimated to cost 10bn euros, will not generate any electricity, instead it will need massive amounts of energy to heat
up.
"With 10 billion, we could build 10,000MW offshore windfarms, delivering electricity for 7.5 million
European households," said Jan Vande Putte of Greenpeace International. Advocates of fusion research
predict that the first commercial fusion electricity might be delivered in 50 to 80 years from now. But
most likely, it will lead to a dead end, as the technical barriers to be overcome are enormous.
Today, the nuclear industry presents itself as the solution to climate change in a massive green-washing
drive. Far from being a solution, the nuclear option stalls real action to combat dangerous climate change.
It is taking away the money for real solutions that are ready and economically available at a large scale,
such as wind energy.
Fusion energy - if it would ever operate - would create a serious waste problem, would emit large amounts
of radioactive material and could be used to produce materials for nuclear weapons. A whole new set of
nuclear risks would thus be created.
"Governments should not waste our money on a dangerous toy which will never deliver any useful
energy," said Jan Vande Putte of Greenpeace International. Instead, they should invest in renewable
energy which is abundantly available, not in 2080 but today"
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ITER would create large amounts of waste that could be used for nuclear
weapons
Green Peace 6/28/05
http://www.greenpeace.org/international/press/releases/ITERprojectFrance
Greenpeace deplores the agreement by the Representatives of the Parties to the International Thermonuclear Experimental Reactor
(ITER) (1) to construct one of the world's largest nuclear fusion experiments in Cadarache, Southern France. The project, estimated to
cost 10bn euros, will not generate any electricity, instead it will need massive amounts of energy to heat up.
"With 10 billion, we could build 10,000MW offshore windfarms, delivering electricity for 7.5 million European
households," said Jan Vande Putte of Greenpeace International. Advocates of fusion research predict that the
first commercial fusion electricity might be delivered in 50 to 80 years from now. But most likely, it will lead to
a dead end, as the technical barriers to be overcome are enormous.
Today, the nuclear industry presents itself as the solution to climate change in a massive green-washing drive.
Far from being a solution, the nuclear option stalls real action to combat dangerous climate change. It is taking
away the money for real solutions that are ready and economically available at a large scale, such as wind
energy.
Fusion energy - if it would ever operate - would create a serious waste problem, would emit large amounts of
radioactive material and could be used to produce materials for nuclear weapons. A whole new set of nuclear
risks would thus be created.
"Governments should not waste our money on a dangerous toy which will never deliver any useful energy," said
Jan Vande Putte of Greenpeace International. Instead, they should invest in renewable energy which is
abundantly available, not in 2080 but today"
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UTGOFF IN 2K2 [Victor A., Deputy Director of the Strategy, Forces, and Resources Division of the Institute for Defense
Analysis, Survival, “Proliferation, Missile Defence and American Ambitions” 2002 p. 87-90]
Further, the large number of states that became capable of building nuclear weapons over the years, but chose not to, can be
reasonably well explained by the fact that most were formally allied with either the United States or the Soviet Union. Both
these superpowers had strong nuclear forces and put great pressure on their allies not to build nuclear weapons. Since the Cold
War, the US has retained all its allies. In addition, NATO has extended its protection to some of the previous allies of the Soviet
Union and plans on taking in more. Nuclear proliferation by India and Pakistan, and proliferation programmes by North Korea,
Iran and Iraq, all involve states in the opposite situation: all judged that they faced serious military opposition and had little
prospect of establishing a reliable supporting alliance with a suitably strong, nuclear-armed state. What would await the world
if strong protectors, especially the United States, were [was] no longer seen as willing to protect states from nuclear-backed
aggression? At least a few additional states would begin to build their own nuclear weapons and the means to deliver them to
distant targets, and these initiatives would spur increasing numbers of the world’s capable states to follow suit. Restraint would
seem ever less necessary and ever more dangerous. Meanwhile, more states are becoming capable of building nuclear weapons
and long-range missiles. Many, perhaps most, of the world’s states are becoming sufficiently wealthy, and the technology for
building nuclear forces continues to improve and spread. Finally, it seems highly likely that at some point, halting proliferation
will come to be seen as a lost cause and the restraints on it will disappear. Once that happens, the transition to a highly
proliferated world would probably be very rapid. While some regions might be able to hold the line for a time, the threats
posed by wildfire proliferation in most other areas could create pressures that would finally overcome all restraint. Many
readers are probably willing to accept that nuclear proliferation is such a grave threat to world peace that every effort should be
made to avoid it. However, every effort has not been made in the past, and we are talking about much more substantial efforts
now. For new and substantially more burdensome efforts to be made to slow or stop nuclear proliferation, it needs to be
established that the highly proliferated nuclear world that would sooner or later evolve without such efforts is not going to be
acceptable. And, for many reasons, it is not. First, the dynamics of getting to a highly proliferated world could be very
dangerous. Proliferating states will feel great pressures to obtain nuclear weapons and delivery systems before any potential
opponent does. Those who succeed in outracing an opponent may consider preemptive nuclear war before the opponent
becomes capable of nuclear retaliation. Those who lag behind might try to preempt their opponent’s nuclear programme or
defeat the opponent using conventional forces. And those who feel threatened but are incapable of building nuclear weapons
may still be able to join in this arms race by building other types of weapons of mass destruction, such as biological weapons.
[The article continues…] The war between Iran and Iraq during the 1980s led to the use of chemical weapons on both sides and
exchanges of missiles against each other’s cities. And more recently, violence in the Middle East escalated in a few months
from rocks and small arms to heavy weapons on one side, and from police actions to air strikes and armoured attacks on the
other. Escalation of violence is also basic human nature. Once the violence starts, retaliatory exchanges of violent acts can
escalate to levels unimagined by the participants before hand. Intense and blinding anger is a common response to fear or
humiliation or abuse. And such anger can lead us to impose on our opponents whatever levels of violence are readily
accessible. In sum, widespread proliferation is likely to lead to an occasional shoot-out with nuclear weapons, and that such
shoot-outs will have a substantial probability of escalating to the maximum destruction possible with the weapons at hand.
Unless nuclear proliferation is stopped, we are headed toward a world that will mirror the American Wild West of the late
1800s. With most, if not all, nations wearing nuclear 'six-shooters' on their hips, the world may even be a more polite place
than it is today, but every once in a while we will all gather on a hill to bury the bodies of dead cities or even whole nations.
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*** EPA DA
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*EPA 1NC*
A. EPA funding is strained—budget cuts.
Andrew Schneider senior national correspondent for investigations, P-I, Two Time Pulitzer Winner, John B. Oakes Award for
Distinguished Environmental Journalism 4/16/08 Seattle PI “White House is widely perceived to be running roughshod over EPA's
scientists and lawyers.” http://blog.seattlepi.nwsource.com/secretingredients/archives/136634.asp [ev]
When Steve Johnson was tapped to head the EPA, many of my friends in the agency said they were proud that one of their own - a real
environmental scientist - was pulled from their ranks to be the boss. But the glow of Johnson's appointment quickly waned in the
messy political realities of being the country's environmental protector. Many of the same scientists and investigators told me that they
were worried that Johnson was anointed to the position because he would be even more susceptible to the ever-present pressure from
the White House and industry lobbyists. Even more susceptiible then George Bush's two previous administrators, Christine Todd
Whitman and Mike Leavitt? Hell yes, says a cover story in the National Journal. Reporter Margaret Kriz wrote that "Johnson's EPA is
regularly pushed around by politically powerful advisers at the White House and in other departments. And that congressional
Democrats aren't making the administrator's life any easier. "There's a sense that the agency has not stood up for itself and has been
run over by other interests in the executive branch -- and that it's happened under Steve Johnson's stewardship," Richard Lazarus, an
environmental law professor at Georgetown, told Kriz. The NJ reported that EPA is failing to live up to its name these days. At a time
when the nation's top environmental regulators face increasingly complex pollution problems, President Bush is pushing for dramatic
cuts in EPA's budget, his administration's strained, pro-industry interpretations of environmental laws have repeatedly been laughed
out of court, and the White House is widely perceived to be running roughshod over agency scientists and lawyers.
The RFS's environmental safeguards must be effectively implemented by EPA While Congress deserves much credit for carefully
crafting the standards, safeguards, and study provisions of the RFS, none of these will amount of a fill of beans unless they are
aggressively and effectively implemented by EPA. EPA's task is complex. Tracking and enforcing the law's environmental safeguards
will be challenging. EPA is up to the task but will require significant resources. Congress must make sure EPA is fully funded to
both develop the implementing regulations and then carry out the enforcement and studies.
Homeland Security EPA has a major role in supporting the protection of the nation’s critical water infrastructure from terrorist threats.
In FY 2008, EPA will continue to support the Water Security Initiative (formerly known as Water Sentinel) pilot program and water
sector-specific agency responsibilities, including the Water Alliance for Threat Reduction (WATR), to protect the nation’s critical
water infrastructure. The FY 2008 budget provides $22 million for the Water Security Initiative completing deployment of final pilot
systems. In FY 2008, the Agency in collaboration with our water sector security stakeholders will continue our efforts to develop,
implement and initiate tracking of national measures related to homeland security critical infrastructure protection activities.
Last week's brutal suicide bombings in Baghdad and Jerusalem have once again illustrated dramatically that the international
community failed, thus far at least, to understand the magnitude and implications of the terrorist threats to the very survival of
civilization itself. Even the United States and Israel have for decades tended to regard terrorism as a mere tactical nuisance or
irritant rather than a critical strategic challenge to their national security concerns. It is not surprising, therefore, that on
September 11, 2001, Americans were stunned by the unprecedented tragedy of 19 al Qaeda terrorists striking a devastating
blow at the center of the nation's commercial and military powers. Likewise, Israel and its citizens, despite the collapse of the
Oslo Agreements of 1993 and numerous acts of terrorism triggered by the second intifada that began almost three years ago,
are still "shocked" by each suicide attack at a time of intensive diplomatic efforts to revive the moribund peace process through
the now revoked cease-fire arrangements [hudna]. Why are the United States and Israel, as well as scores of other countries
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affected by the universal nightmare of modern terrorism surprised by new terrorist "surprises"? There are many reasons,
including misunderstanding of the manifold specific factors that contribute to terrorism's expansion, such as lack of a universal
definition of terrorism, the religionization of politics, double standards of morality, weak punishment of terrorists, and the
exploitation of the media by terrorist propaganda and psychological warfare. Unlike their historical counterparts, contemporary
terrorists have introduced a new scale of violence in terms of conventional and unconventional threats and impact. The
internationalization and brutalization of current and future terrorism make it clear we have entered an Age of Super Terrorism
[e.g. biological, chemical, radiological, nuclear and cyber] with its serious implications concerning national, regional and
global security concerns.
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Washington insiders say that the Bush White House has significantly altered the way the federal government approaches
environmental protection by quietly changing the way EPA does its job. For one thing, critics charge, Bush is trying to
starve the agency of cash. The White House's proposed fiscal 2009 budget would provide just $7.1 billion -- fewer actual
dollars than EPA has received in any fiscal year since 1997. Bush's plan, when adjusted for inflation, includes record-low
funding levels for community drinking water facilities and for the Superfund hazardous-waste cleanup program.
Lawmakers from both political parties say they'll scrap the budget proposal and start from scratch.
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The EPA budget will get cut to it’s lowest level since 1985
AAAS R&D Budget and Policy Program, international non-profit organization for promoting science, February 20, 2008
http://www.aaas.org/spp/rd/epa09p.htm
The Environmental Protection Agency (EPA), the primary regulatory agency for the U.S. environment, funds a broad portfolio of
R&D to meet the science and technology needs of its regulatory and enforcement responsibilities. The FY 2009 request would
continue the trends of recent years by cutting EPA’s R&D funding by $7 million or 1.3 percent to $541 million (see
Table II-17). Nearly all EPA research areas would decline.
EPA’s R&D is managed by its Office of Research and Development (ORD), which funds both R&D at EPA laboratories around the
country and external R&D. Nearly all of EPA’s R&D funding comes from the Science and Technology (S&T) budget account, which
would total $764 million in 2009, up slightly from the final 2008 funding level. R&D funding makes up two-thirds of the S&T
account. Subtracting non-R&D items such as critical infrastructure protection, operating overhead costs, and clean air standards and
certification activities leaves an R&D portfolio of $513 million from S&T, down $7 million of which $4 million would be from the
elimination of 2008 earmarks (see Table II-17). ORD also receives R&D funding from the Superfund program (up $1 million to $26
million) for hazardous wastes research, and small amounts of funding from other EPA accounts.
Funding for nearly all EPA research areas would decline in the 2009 budget (see Table II-17). Clean air research would
fall $3 million to $97 million after Congress added funds in 2008 appropriations. EPA’s contribution to global change research would
continue to slide, down to $16 million from a congressionally boosted $20 million. The clean air portfolio tries to understand the
composition and effects of air pollution and to develop technologies for reducing it, and also funds research on related topics such as
the health effects of fine particles in the atmosphere. Human health and ecosystems research, the largest part of the ORD portfolio,
would fall $6 million to $217 million, with an increase in the computational toxicology program to $15 million offset by cuts in other
areas such as endocrine disrupting chemicals and human health and ecosystems protection. Within this portfolio, fellowships funding
would fall $1 million to $9 million.
Homeland security related R&D, a growth area in recent years, would increase from $31 million to $37 million. Some of this effort is
devoted to protecting drinking water supplies against terrorist attack through vulnerability assessments and a laboratory network for
surveillance. This portfolio also funds EPA’s National Homeland Security Research Center (NHSRC) to conduct R&D on a wide
variety of terrorist threats that may have an impact on the natural environment, such as radiation, drinking water contamination, and
the environmental impacts of cleanup \technologies after a terrorist attack.
Sen. George V. Voinovich sharply criticized EPA Administrator Stephen L. Johnson Wednesday, telling him that "this budget you've
submitted is an insult."
Voinovich, R-Ohio, said the Environmental Protection Agency has proposed cuts in successful cleanup programs while failing to provide funds to
help economically strapped communities meet required federal pollution-control standards.
"If the federal government is going to impose these costly mandates on struggling state and local governments, then it should provide funding and
flexibility for compliance of those mandates," he said.
At a hearing of the Senate Environment and Public Works Committee, Voinovich said the Bush administration's proposed $7.14 billion EPA
budget for fiscal year 2009 is "woefully inadequate" in meeting the nation's wastewater infrastructure needs.
He expressed dismay at a proposed decrease in funding for the Great Lakes Legacy Act — down to $35 million from the $49.6 million that the EPA
projected two years ago.
"This program shows results — hundreds of thousands of cubic yards of contaminated sediments have been removed from the Great Lakes — and I
strongly encourage you to work to increase funding for this program," Voinovich told Johnson.
He accused the EPA of operating in a "cocoon," unaware that Ohio's economy is weakening and that the agency's rules are making
matters worse.
"EPA is requiring the city of Fremont, population of 26,000 people — 49 percent are considered low-income — to spend $63 million" on wastewater
treatment, he said. These residents' sewer rate increases will be 150 percent, he said.
"Administrator, we are asking our communities to do the impossible," Voinovich told Johnson. "EPA is simply not stepping up to the plate to assist
the thousands of communities across the country facing substantial costs to comply with EPA rules."
232
Econ Generic
DDI 2008
Serrano
233
Econ Generic
DDI 2008
Serrano
The 2009 Budget eliminates 151 programs and cuts EPA funding
White, staff writer for World Socialist Website, FEBhttp://www.wsws.org/articles/2008/feb2008/budg-f05.shtml
President Bush submitted his last budget to the US Congress on Monday outlining his administration’s right-wing proposals of tax cuts for the
wealthy, massive military spending and the further gutting of social programs that the majority of ordinary Americans depend on.
While there is little chance that the budget in its present form will be passed by a lame duck president with a Democratic majority in Congress, the
budget illustrates the social and political priorities shared by both parties and the ruling class as a whole.
The $3.1 trillion budget would make permanent the tax cuts passed during Bush’s first term, while increasing the Pentagon budget to
the highest level in inflation-adjusted terms since World War II. At the same time it would freeze all non-defense spending and eliminate
or sharply cut back 151 programs. Spending for social services, including entitlements such as Medicare and Medicaid, would be reduced by $23
billion in 2009 and $474 billion over the next five years.
“In my 2009 budget, I have set clear priorities that will help us meet our nation’s most pressing needs while addressing the long-term challenges
ahead. With pro-growth policies and spending discipline, we will balance the budget in 2012, keep the tax burden law and provide for our national
security,” Bush said.
Medicare, the major federal health care program for seniors, would be cut by $178 billion over the next five years. Medicaid, the federal health care
program for low-income people, would lose $18.2 billion over five years. Signaling his determination to cripple the programs, Bush insisted the cuts
were needed to slow “the unsustainable growth in entitlement spending.”
Many of the Medicare and Medicaid cuts will be achieved by reducing payments to doctors and other health care providers, forcing many to limit the
number of elderly and low-income patients they see or drop out of the program entirely. Other cost-cutting will be achieved by shifting the burden to
the states—under conditions in which more than half are already facing severe budget shortfalls due to the collapse of the housing bubble and the
general economic downturn.
In line with the administration’s push to promote private insurers over public health insurance programs, the budget leaves intact more than $150
billion in subsidies to private insurance companies involved in the Medicare Advantage program, the privatized part of the federal program.
According to the Center on Budget Priorities, other cuts in the President’s budget include:
* Funding for Low Income Home Energy Assistance Program (LIHEAP) would be cut by $570 million or 22 percent, affecting more than 1 million
families and elderly people. Funding for the program remains at the same level as in 2001, even though home energy prices have risen by 65 percent.
* Child care assistance for low-income families would be frozen for the seventh consecutive year. According the administration’s own figures,
200,000 fewer children in low-income families would receive federal child care assistance in 2009 than in 2007, under the president’s budget.
* Reductions in the Section 8 housing voucher program, the nation’s largest low-income rental assistance program, would mean at least 100,000
fewer households would receive assistance.
* Funding for the Centers for Disease Control and Prevention would be cut by $433 million, even before adjusting for inflation.
* The Environmental Protection Agency’s budget would be cut by $330 million, before adjusting for inflation, falling in 2009 to more
than $1 billion less than the EPA budget in 2004.
234
Econ Generic
DDI 2008
Serrano
Sen. George Voinovich, R-Ohio, accused the EPA of forcing unfunded mandates on local communities regarding their
wastewater treatment systems. ``Continued cuts to the SRF program, when EPA estimates the nation's need for wastewater
treatment and collection at $193.5 billion, makes no sense,'' Voinovich said. ``This especially concerns me because my state of
Ohio has one of the largest needs in the nation at $11.7 billion.'' Voinovich said the EPA is not stepping up to the plate to
assist thousands of communities nationwide that are facing substantial costs to comply with EPA orders.`I must tell you
that from my experience as a former mayor, county commissioner and governor, I consider this to be an unfunded mandate,''
Voinovich said. ``Administrator, we are asking our communities to do the impossible. If the federal government is going to
impose these costly mandates on struggling state and local governments, then it should provide funding and flexibility for
compliance with these mandates.'' Voinovich also was critical of a nearly $15 million reduction in funding for the Great
Lakes Legacy Act in fiscal year 2009. The program has been paying for removal of contaminated sediment from the
Great Lakes to improve water quality. Boxer listed numerous programs she believes deserve additional funding,
including the Superfund, underground storage tank and diesel emission reduction grant programs.
Inhofe, while upset about the Clean Water State Revolving Fund cuts, also expressed frustration that other areas within
the EPA budget aren't being cut enough. “After seven years, the Bush administration has failed to find any meaningful
savings or wasteful spending in the EPA budget,'' Inhofe said. ``I find it hard, if not impossible, to believe there are no
programs that should be cut. The only significant cuts the administration ever proposes are the ever popular and much
needed SRFs and Congressional earmarks.''
235
Econ Generic
DDI 2008
Serrano
Despite EPA efforts to quickly develop drinking water rules governing underground injection of carbon dioxide (CO2),
the agency's recently released fiscal year 2009 budget is seeking only limited funds for key agency programs that
are looking to address a future carbon capture and storage (CCS) program. The limited funds could hamper agency
efforts to develop rules and research the impacts of storing large volumes of CO2 underground -- considered an essential
element in any future climate change program. For example, a key agency advisory panel on clean coal technologies
recently urged Congress to create a $1 billion fund to finance CCS demonstration projects. According to the agency's
budget justification, the agency is seeking to maintain level funds for the underground injection control (UIC) program,
which is crafting, and will likely implement, any CCS rule. According to the budget request, the agency is seeking
$10.891 million for the UIC program, which will oversee any future CCS program, a $170,000 increase over FY08
enacted levels. The budget justification is available on InsideEPA.com. See page 2 for details. While level funding for the
regulatory program shows agency officials have been able to stave off the steep cuts the agency considered as part of its
early review for the FY09 request, it still falls significantly short of the $56 million target that some state drinking water
officials have suggested the program needs to address future underground injection of CO2.
The Reduced Greenhouse Gas Intensity Program is being significantly cut by the EPA
Carol Werner, Executive Director of ENVIRONMENTAL AND ENERGY STUDY INSTITUTE, Feburary 5, 2008,
(http://www.eesi.org/publications/Press%20Releases/2008/epa_fy09budget.htm)
Looking at the EPA budget by goals, the Reduced Greenhouse Gas Intensity program within Goal 1 has a FY 2009
budget request of $121 million, which is $9.0 million (6.9%) less than the FY 2008 appropriations of $130 million and
$1.7 million (1.4%) less than the FY 2008 budget request of $123 million. Looking at the EPA budget by program and
project, the FY 2009 budget request for Climate Protection programs includes a Science and Technology component,
requested at $11.4 million, and an Environmental Program and Management component, requested at $87.0 million.
Taken together, these were cut $10.3 million (9.5%) from FY 08 appropriations. The Climate Protection Programs include
Energy Star, SmartWay Transport, the Methane to Markets Partnership and Asia-Pacific Partnership. There were a number of
cuts, as well as a few increases to the programs, as illustrated below:
Zeroing out the Greenhouse Gas Reporting Registry (100% cut from $3.4 million in FY 08)
$10.3 million cut overall (9.5% cut from FY 08 appropriations)
$6.9 million cut in Climate Science and Technology program (38% cut from FY 08 appropriations)
$4.0 million cut in Energy STAR (8.3% cut from FY 08 appropriations)
$177,000 increase in Methane to Markets (4.1% increase from FY 08 appropriations)
$5.0 million increase in Asian Pacific Partnership (no previous FY 08 appropriation amount)
Clean Air Rules are a major component of EPA’s Clean Air and Global Climate Change Goal, and include the Clean Air
Interstate Rule, the Clean Air Mercury Rule and the Clean Air Nonroad Diesel Rule. These rules work towards the
improvement of the United State’s air quality. Additionally, reductions on particulate matter from diesel engines will
continue to be addressed through the Diesel Emissions Reduction Grants program of the Energy Policy Act of 2005 (P.L. 109-
58), which authorizes $200 million annually (2007-2011). However, the President requests just $49.2 million for the FY 09
EPA Clean Diesel grant, 25% of the authorized amount.
236
Econ Generic
DDI 2008
Serrano
Programs from Climate Change and Climate Protection are being drastically cut
Carol Werner, Executive Director of ENVIRONMENTAL AND ENERGY STUDY INSTITUTE, Feburary 5, 2008,
(http://www.eesi.org/publications/Press%20Releases/2008/epa_fy09budget.htm)
The President’s FY 2009 budget request for Clean Air and Global Climate Change (EPA Goal 1) is $939 million. This is
$33 million (3.4%) less than the FY 2008 appropriations. Looking at the EPA budget by goals, the Reduced Greenhouse
Gas Intensity program within Goal 1 has a FY 2009 budget request of $121 million, which is $9.0 million (6.9%) less
than the FY 2008 appropriations of $130 million and $1.7 million (1.4%) less than the FY 2008 budget request of $123
million. Looking at the EPA budget by program and project, the FY 2009 budget request for Climate Protection programs
includes a Science and Technology component, requested at $11.4 million, and an Environmental Program and
Management component, requested at $87.0 million. Taken together, these were cut $10.3 million (9.5%) from FY 08
appropriations. The Climate Protection Programs include Energy Star, SmartWay Transport, the Methane to Markets
Partnership and Asia-Pacific Partnership. There were a number of cuts, as well as a few increases to the programs, as
illustrated below:
The President’s FY 2009 Environmental Protection Agency (EPA) budget request remains relatively flat compared to the
FY 2008 request and is down slightly from FY 2008 appropriations. The FY 2009 budget request is $7.14 billion, which
is $56.9 million (0.80%) less than the FY 2008 budget request and $330 million (4.4%) less than FY 2008
appropriations. The President’s FY 2009 budget request for Clean Air and Global Climate Change (EPA Goal 1) is $939
million. This is $33 million (3.4%) less than the FY 2008 appropriations. Looking at the EPA budget by goals, the
Reduced Greenhouse Gas Intensity program within Goal 1 has a FY 2009 budget request of $121 million, which is $9.0
million (6.9%) less than the FY 2008 appropriations of $130 million and $1.7 million (1.4%) less than the FY 2008 budget
request of $123 million. Looking at the EPA budget by program and project, the FY 2009 budget request for Climate
Protection programs includes a Science and Technology component, requested at $11.4 million, and an Environmental
Program and Management component, requested at $87.0 million. Taken together, these were cut $10.3 million (9.5%)
from FY 08 appropriations. The Climate Protection Programs include Energy Star, SmartWay Transport, the Methane to
Markets Partnership and Asia-Pacific Partnership. There were a number of cuts, as well as a few increases to the programs, as
illustrated below:
237
Econ Generic
DDI 2008
Serrano
In releasing his agency's 2009 budget, as proposed by the Bush Administration, Environmental Protection Agency (EPA) Administrator Stephen L.
Johnson said the president's budget request puts the EPA on "a course to deliver a cleaner, healthier tomorrow."
U.S. Senator Barbara Boxer (D-CA), who has recently been at odds with the agency over its refusal to grant California a waver to impose its own,
stricter tailpipe emissions standards, had a different take on the budget, which was cut by roughly $330 million (4.4%).
Boxer, who is Chairman of the Senate Committee on Environment and Public Works, said, "With this budget the President is once again
sending a clear message that cleaning up our environment is not a priority for the Bush Administration."
According to a statement released by Boxer, the budget proposes severe reductions in several key programs for protecting health, cutting
air and water pollution, and restoring the environment.
In addition to cutting funds for clean water protection programs and the clean-up of toxic sites, Boxer's statement said the president's budget
eliminates funding for the Greenhouse Gas Reporting Registry, zeroes out over $9.8 million in funding for California Emission Reduction
programs, and cuts 38% of the funding for programs that seek to use science and technology to address global warming.
Furthermore, Boxer said normally, EPA provides a detailed "Budget Justification" document with an explanation of all budget figures, but
this year has failed to do so, undermining the transparency of the President's proposed budget.
EPA Administrator, Johnson, did not specifically address any of the budget cuts in his statement, but said the budget proposes to strengthen EPA's
efforts in energy and homeland security.
Johnson noted the following budget items:
• An additional $32 million to protect against terrorist attacks and natural disasters--a total of $170 million
• The largest enforcement budget ever--an increase of $9 million, bringing the total to $563 million
• An additional $14 million to meet the increased permitting and environmental review responsibilities that have come with the upsurge in
proposed energy projects
• $49.2 million for Clean Diesel grants--$15 million specifically targeted to support EPA's Sustainable Ports Initiative
• increased spending on nanotechnology research spending.
Johnson's statement contradicts Boxer's in the area of superfund toxic-site cleanup. Boxer listed roughly $13 million in cuts, while Johnson says the
budget proposes an increase of $10.2 million.
Rep. John D. Dingell (D-MI), Chairman of the Committee on Energy and Commerce, also opposed what he saw as cuts to clean-up funding.
"Superfund cleanups have fallen dramatically under this Administration, yet the remedial cleanup budget is losing millions again this year causing the
backlog to grow even larger," he said.
Dingell added, "If nothing else, the President is consistent when it comes to the EPA budget. His assault on important environmental
programs continues with the lowest funding request for EPA in eight years. The President's FY09 Budget request would starve many
EPA programs that are vital to protecting the environment and the public health."
$0: Proposed budget for the greenhouse gas reporting registry, an EPA program for voluntary reporting of greenhouse gas
emissions and reductions. This is a 100 percent cut from the $3.4 million allocated in fiscal year 2008.
$6.9 million: Proposed cut to the EPA Climate Science and Technology Program, which focuses on research and
development of energy and sequestration technologies critical to long-term emissions reduction for coal fired power plants and
other sources. This is a 38 percent cut from the fiscal year 2008 appropriations level.
$10.3 million: Proposed cut overall to climate protection programs such as Energy Star, SmartWay Transport, the
Methane to Markets Partnership, and the Asia-Pacific Partnership. This is a 9.5 percent cut from the fiscal year 2008
appropriations level.
$4.0 million: Proposed cut to Energy STAR, a joint program of the EPA and the DOE helping consumers save money
and protect the environment through energy efficient products and practices. This is an 8.3 percent cut from the fiscal
year 2008 appropriations level.
238
Econ Generic
DDI 2008
Serrano
President Bush has repeatedly said in recent months that he would lead the United States in taking steps to reduce
oil consumption, combat global warming and expand the production of renewable fuels. Bush signed the Energy
Independence and Security Act in December, and in his State of the Union address just last week, he said that we
must continue to invest in renewable fuels and that the United States is committed to strengthening our energy
security and confronting global climate change. Yet a quick look at the president's FY 2009 budget proposals for
the Department of Energy and Environmental Protection Agency programs show cuts in critical areas, including
climate protection, tribal energy, and solar energy, while funding for fossil and nuclear energy was increased. And
some programs, such as Weatherization Assistance Grants, and the Renewable Energy Production Incentive, were zeroed
out entirely.
$0: Proposed budget for the Renewable Energy Production Incentive program, which provides financial incentive
payments for electricity produced and sold by new qualifying renewable energy generation facilities. This is a 100
percent cut from the $5.0 million allocated in fiscal year 2008.
$6.9 million: Proposed cut to the hydropower program, whose purpose is to develop, conduct, and coordinate research
and development with industry and other federal agencies to improve the technical, societal, and environmental benefits
of hydropower, which includes wave, tidal, and traditional dam hydropower. This is a 70 percent cut from the fiscal year
2008 appropriations level.
$12.3 million: Proposed cut to the solar energy program, which works to accelerate the development of solar
technologies as energy sources for the nation and the world, as well as educate the public about the value of solar power
as an energy choice. This is a 7 percent cut from the fiscal year 2008 appropriations level.
$26.8 million: Increase in biomass and biorefinery systems R&D. This is a 13 percent increase from FY08 appropriations
and should be commended as an investment in low-carbon alternatives.
$10.2 million: Increase in geothermal technology. This is a 51 percent increase from FY08 appropriations and should also be
commended as an investment in low-carbon alternatives.
239
Econ Generic
DDI 2008
Serrano
BRINK—WATER BUDGET
EPA is reiterating its call for private investment as a solution to shore up funding for wastewater infrastructure projects in
combination with "sustainability" practices the agency says could save money for municipalities, even as congressional
Democrats are blasting the Bush administration's proposed major cuts to federal infrastructure funding in fiscal year 2009.
The FY09 budget request, released Feb. 4, would fund the clean water state revolving loan fund (SRF) at $555 million, a
$134 million cut from the FY08 omnibus spending law that funded the program at $689 million. The budget request also
renews the administration's contentious push to remove a cap on the use of private activity bonds (PABs) -- tax exempt
bonds used for government partnerships with the private sector -- in order to increase water infrastructure funding
It appears President Bush's proposed 2009 EPA budget will face tough challenges in the Senate, as Democrats and Republicans
alike criticized it Feb. 27 during an Environment Committee hearing with agency Administrator Stephen Johnson. One issue
that united both parties was anger over the administration's proposal to cut $134.1 million from the Clean Water State
Revolving Fund, which loans money to communities to upgrade their wastewater systems. ``This is another one of the hardest
hit programs, and it is heading in the wrong direction,'' said Sen. Barbara Boxer, D-Calif., chairwoman of the Senate
Environment Committee. Her Republican counterpart, Sen. James Inhofe, R-Okla., who serves as the committee's ranking
member, agreed. Inhofe, normally a strong proponent of budget slashing, said this was one area in which the cuts are
unwarranted.
240
Econ Generic
DDI 2008
Serrano
BRINK—WATER BUDGET
The Budget for the EPA slashes money allocated for water
Bruce Geilsman, staff writer for Waste News, March 3rd, 2008
http://www.lexisnexis.com.ezproxy.lib.utexas.edu/us/lnacademic/results/docview/docview.do?docLinkInd=true&risb=21_T4093746364&format=GN
BFI&sort=BOOLEAN&startDocNo=1&resultsUrlKey=29_T4093746367&cisb=22_T4093746366&treeMax=true&treeWidth=0&csi=224249&doc
No=3
It appears President Bush's proposed 2009 EPA budget will face tough challenges in the Senate, as Democrats and Republicans alike
criticized it Feb. 27 during an Environment Committee hearing with agency Administrator Stephen Johnson.
One issue that united both parties was anger over the administration's proposal to cut $134.1 million from the Clean Water
State Revolving Fund, which loans money to communities to upgrade their wastewater systems.
``This is another one of the hardest hit programs, and it is heading in the wrong direction,'' said Sen. Barbara Boxer, D-Calif., chairwoman of the
Senate Environment Committee.
Her Republican counterpart, Sen. James Inhofe, R-Okla., who serves as the committee's ranking member, agreed. Inhofe, normally a strong
proponent of budget slashing, said this was one area in which the cuts are unwarranted.
``As I have indicated, I will once again be supporting efforts to restore the large cut you proposed to the critical Clean Water SRF program,'' Inhofe
said. ``There is a nationwide crisis and a need for more water infrastructure money that is acknowledged by this administration.''
Compounding the lack of water infrastructure funding are the many costly new regulations being imposed on localities, Inhofe said.
Sen. George Voinovich, R-Ohio, accused the EPA of forcing unfunded mandates on local communities regarding their wastewater treatment systems.
``Continued cuts to the SRF program, when EPA estimates the nation's need for wastewater treatment and collection at $193.5 billion, makes no
sense,'' Voinovich said. ``This especially concerns me because my state of Ohio has one of the largest needs in the nation at $11.7 billion.''
Voinovich said the EPA is not stepping up to the plate to assist thousands of communities nationwide that are facing substantial costs to comply with
EPA orders.
``I must tell you that from my experience as a former mayor, county commissioner and governor, I consider this to be an unfunded mandate,''
Voinovich said. ``Administrator, we are asking our communities to do the impossible. If the federal government is going to impose these costly
mandates on struggling state and local governments, then it should provide funding and flexibility for compliance with these mandates.''
Voinovich also was critical of a nearly $15 million reduction in funding for the Great Lakes Legacy Act in fiscal year 2009. The program has been
paying for removal of contaminated sediment from the Great Lakes to improve water quality.
Boxer listed numerous programs she believes deserve additional funding, including the Superfund, underground storage tank and diesel emission
reduction grant programs.
Inhofe, while upset about the Clean Water State Revolving Fund cuts, also expressed frustration that other areas within the EPA budget aren't being
cut enough.
``After seven years, the Bush administration has failed to find any meaningful savings or wasteful spending in the EPA budget,'' Inhofe said. ``I find
it hard, if not impossible, to believe there are no programs that should be cut. The only significant cuts the administration ever proposes are the ever
popular and much needed SRFs and Congressional earmarks.''
Johnson, meanwhile, in prepared remarks defended the budget proposal, saying it ``meets the major priorities that I've set for my final year of
service.''
In particular, Johnson said, the budget would advance clean, affordable and safe energy, improve homeland security, improve water infrastructure
programs, and continue Superfund remediation ``of the most highly contaminated hazardous waste sites.''
However, it is important to achieve those goals while also demonstrating fiscal responsibility, Johnson said.
241
Econ Generic
DDI 2008
Serrano
No new spending in an election year—funding would trade off from other programs
JOHN STEPHEN, politician, Congressional candidate, Jul. 18, 2008 ("On energy costs, Washington offers no real answers"
www.unionleader.com/article.aspx?headline=John+Stephen%3A+On+energy+costs%2C+Washington+offers+
no+real+answers&articleId=58250a2c-89b0-4696-925a-977411675a71) [JWu]
Now, no Congress in its right mind would hike taxes in an election year, so that means that to keep these incentives for renewable
energy in place, Washington would have to do what the rest of America is doing to meet the rising costs of energy prices -- roll up
its sleeves and make the tough decisions on spending.
In its draft report, the BOSC subcommittee says the members "recognize that EPA's budget is constrained and that the
agency must stretch to meet the needs of its clients," adding that despite this budgetary limitation the program
"demonstrated an ability to respond to an emerging issue -- addressing potential materials management issues associated
with nanotechnology."
242
Econ Generic
DDI 2008
Serrano
EPA's environmental enforcement is on the brink of collapse—under Bush, it's low priority
Eric Schaeffer, ex-director of EPA's Office of Regulatory Enforcement, director of the Environmental Integrity Project at
the Rockefeller Family Fund, July/August 2002 "Clearing the air", washingtonmonthly.com/features
/2001/0207.schaeffer.html [JWu]
In a matter of weeks, the Bush administration was able to undo the environmental progress we had worked years to
secure. Millions of tons of unnecessary pollution continue to pour from these power plants each year as a result. Adding
insult to injury, the White House sought to slash the EPA's enforcement budget, making it harder for us to pursue cases
we'd already launched against other polluters that had run afoul of the law, from auto manufacturers to refineries, large
industrial hog feedlots, and paper companies. It became clear that Bush had little regard for the environment--and even less
for enforcing the laws that protect it. So last spring, after 12 years at the agency, I resigned, stating my reasons in a very
public letter to Administrator Whitman.
Enforcing environmental laws has never been easy. Even in the Clinton administration there were bureaucratic turf battles,
truculent congressmen, and relentless industry lobbyists to contend with. But hard work yielded progress; the job was
sometimes a headache, but I never doubted that we were having a positive effect. Under Bush, the balance has shifted, to a
degree few outside the bureaucracy may realize.
The administration's most obvious assaults on the environment have drawn fire. The press and environmental groups attacked
recent EPA rule changes that allow coal-mining companies to dump waste in valleys and streams, and when the EPA last year
overturned Clinton-era regulations to reduce arsenic in drinking water, the public reaction was so intensely negative that
Whitman eventually backed off. But these public efforts to roll back regulations are only half the story. Behind the scenes, in
complicated ways that attract less media attention (and therefore may be politically safer), the administration and its allies in
Congress are crippling the EPA's ability to enforce laws and regulations already on the books. As a result, some of the
worst pollution continues unchecked.
243
Econ Generic
DDI 2008
Serrano
LWCF BRINK
244
Econ Generic
DDI 2008
Serrano
Rena Steinzor. Law at U Maryland Law, Member scholar of the Center for Progressive Regulation.
3-16, 2005. Center for American Progress.
www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=468713
Bush political appointees, many of them former industry lawyers and lobbyists, have pushed regulatory changes that
undercut our bedrock environmental laws. In its recent proposal to “protect” Americans from mercury poisoning, for
example, the administration offers a plan to allow polluters to trade pollution credits, thus practically guaranteeing
mercury “hotspots” in various pockets of the country where mercury pollution swells far beyond currently unacceptable
levels. (Sorry, Great Lakes region, but you lose the administration’s mercury lottery. See Professor Catherine O’Neill’s recent
article for an explanation.) Lost in the debate over the audacity of the administration’s plan is a large legal problem: the Clean
Air Act requires the Environmental Protection Agency to adopt the strongest possible controls that are technologically feasible,
and this doesn’t mean pollution-credit trading. The administration simply isn’t following the law.
Another approach has been to take the environmental cops off the beat, turning the EPA into a shadow of its former
self. The administration has simply ratcheted down enforcement efforts through budget cuts and inactivity, with the result
that it’s easier to get away with illegally polluting the nation’s air and water.
245
Econ Generic
DDI 2008
Serrano
Rena Steinzor. Law at U Maryland Law, Member scholar of the Center for Progressive Regulation. 3-16, 2005. Center for
American Progress. www.americanprogress.org/site/pp.asp?c=biJRJ8OVF&b=468713
Asked about his environmental record during the second presidential debate this fall, President Bush rattled off a series of
well focus-grouped phrases – “clean coal,” “clear skies,” and “mak[ing] sure our forests aren’t vulnerable to forest fires” –
and touted himself as a “good steward of the land.” The rhetoric ignored reality: during the president’s first term, the
administration took a dive on global climate change, flung open wilderness areas to drilling and logging, weakened air
and water pollution standards, starved cleanup and enforcement programs, and in a variety of other ways cast its lot with
polluters instead of the environment and public health.
246
Econ Generic
DDI 2008
Serrano
The EPA budget is scarce; funding for one plan is taken from cuts in lower-priority projects
William Ruckelhaus, EPA Administrator, A.B. (cum laude) from Princeton, L.L.B. from Harvard Law, ex-Deputy State
Attorney General, September 21st, 2007 "Goals v. funding" epa.gov/history/publications/ruck/16.htm [JWu]
MR. RUCKELSHAUS: You have to set priorities and defend them on the grounds of having the greatest social payoff.
Then keep saying, "Here is the money and manpower I have to carry out the responsibilities you insist on, here is why I
get the priorities the way I have. While I recognize my obligations, I don't have the resources to fulfill them."
Then you have an added complication: even though the administration isn't going to ask for the resources either, you have
to defend the administration's position and its unwillingness to carry out the mandate of the Congress. I used to combat this by
falling back on the game being played, which everybody understands. Congress lays on EPA more than they are capable of
doing. The administration doesn't ask for enough money to accomplish EPA's whole program because, frankly, there's
too much for any single agency to accomplish in the allowed timeframe. Members of Congress fail to testify on behalf of
more money for EPA, making it impossible for the agency to execute what Congress itself mandated. Then the administrator
appears before the committees and is attacked for not doing what he had no hope of doing in the first instance.
But when you repeat these steps back to the committees and remind them of your warnings of insufficient funding in previous
testimony, they don't say anything; they calm down. They know you understand what's going on, and they have to be quiet or
face further embarrassment from you.
When I returned to EPA after ten years absence, I faced the same thing. I told Congress, "I'll show you the testimony I gave ten
years ago in which I said this was going to happen; and now it has." In the EPA job, you will miss deadlines and have
assignments you can't carry out. It's all just a part of it. You do the best you can. But you are in a stronger position to do the
best you can if you tell Congress ahead of time what you are going to do, what are the limitations on your capabilities, and then
keep pointing back to what you predicted.
Rep. John D. Dingell, Chairman, House Committee on Energy and Commerce, February 4, 2008 ("Wynn blasts Bush EPA cuts"
http://energycommerce.house.gov/Press_110/110nr192.shtml)[JWu]
Washington, DC –Congressmen Albert Wynn (D-MD), Chairman of the Subcommittee on Environment and Hazardous
Materials, said today that President Bush’s Fiscal Year (FY) 2009 Budget would make drastic cuts to important
Environmental Protection Agency (EPA) programs.
“The President’s FY 2009 budget requests $7.1 billion for the EPA. Compared to last year’s funding level enacted by Congress,
the Bush Administration’s budget proposal would dramatically cut spending by $400 million for environmental programs
that are pivotal to the protection of public health and safety,” Wynn said.
This devastating downward spiral in funding for environmental protection is even more significant when compared to
EPA’s authorized budget five years ago. Congress authorized $8.4 billion in spending for the EPA in Fiscal Year 2004. The
President’s budget request represents an incredible $1.3 billion cut from this level.
“National budgets should reflect our national priorities,” said Wynn. “Clearly, President Bush has not made
environmental protection a priority during the course of his Administration.”
247
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At the same time we protect the environment and the family budget, we must be mindful of the federal budget. We on the
appropriations subcommittee funding EPA will get into the specifics of EPA's budget later this month. But the outlook for
VA/HUD looks particularly bleak.
• We must remember that EPA competes for dollars within the same appropriations subcommittee as NASA, the VA, and HUD.
Every new dollar spent on the environment is one dollar we cannot spend to provide healthcare to our veterans or shelter for
our homeless. Every time one of our colleagues suggest spending more money for an EPA program, each of us should think to
ourselves whether that is more important than VA medical care or homeless housing assistance grants.
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EPA=NM
The EPA (http://www.epa.gov) is a Federal agency that promulgates and enforces regulations dealing with protection of
the environment and the general public. It covers areas such as collection and disposal of hazardous waste (including
regulated medical waste), air pollution, water pollution, drinking water quality, pesticides, solid waste, hazardous waste
sites, hazardous material releases that threaten the environment, asbestos in public schools, noise pollution, and many
other areas. EPA receives legislative direction from numerous acts or statutes. The most notable of these include: Toxic
Substances Control Act (TSCA) Resource Conservation and Recovery Act (RCRA) Clean Air Act Amendments of 1990
(CAAA) Clean Water Act (CWA) Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA
or Superfund) Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) Emergency Planning and Community Right
To Know Act as part of the Superfund Amendments and Reauthorization Act (SARA) Safe Drinking Water Act (SDWA)
EPA has issued several regulations under Title VI of the Clean Air Act designed to protect the ozone layer and to provide
for a smooth transition away from ozone-depleting substances. EPA is also charged with enforcing these regulations. This
section of the web site will feature information about enforcement actions, ranging from civil fines to criminal
prosecutions. The Stratospheric Protection Division doesn't actually enforce the regulations; enforcement is performed
within EPA by the Office of Enforcement and Compliance Assurance.
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EPA=NM
There are many means of determining the compliance status of affected facilities. Direct inspection and testing by
government personnel is often the best, but also may be among the most costly means. Other means include: Routine self-
reporting requirements. Industries can be required to monitor routinely their own emissions or discharges, and report these
to the government. The best known example of such a program is the requirement that all persons holding a water pollution
discharge (NPDES) permit must file periodic Discharge Monitoring Reports with the federal or state government. A very substantial
portion of all water pollution enforcement cases are based upon information reported in such "DMRs." Under the Clean Air Act
Amendments of 1990 and subsequent regulatory amendments, many types of facilities now have to install continuous emissions
monitors to keep track of what is coming out of their smokestacks. They will be obliged to report the data from these monitors, in
much the same way as NPDES permittees submit DMRs. Failure to monitor, or reporting of inaccurate information, are compliance
problems which must themselves be the subject of the overall enforcement strategy. If sanctions for false reporting are severe, and the
risk of detection is real, self-reporting is an effective compliance monitoring tool. A self-reporting program should therefore be
combined with a program of field audits by government personnel. Targeted information gathering. Instead of, or in addition to routine
self-monitoring obligations, EPA may require a business to carry out special self-testing, or to report other relevant information. EPA
may request submission of operating logs and financial records to show when pollution control equipment was purchased or installed,
how much and what type of fuel was used, what materials were utilized, etc. In most of the federal environmental laws, Congress has
granted EPA broad information gathering authorities of this sort, which can be used whenever noncompliance is suspected.
Increasingly, an enforcement case will not be commenced until an information letter has first been sent, in an effort to get the most
accurate information and minimize arguments about the facts. Citizen tips. Tips from citizens living near a facility, or even workers in
a facility, can be very valuable in identifying possible violators. The likelihood of receiving such tips is enhanced when government
publicizes the existence of environmental regulatory requirements, and makes available telephone "hotlines" for anonymous calls.
Some federal environmental statutes also provide legal job protection for "whistle-blowers," employees who report infractions by their
employers. Click here to submit a tip/complaint in EPA Region 10. Remote sensing. In today's high-tech age, a variety of
technological resources are available which can "stretch" EPA's limited inspection resources. For example, aerial photography or even
geophysical satellite data can disclose potential hazardous waste sites through the presence of distressed vegetation. An aerial photo-
history, showing changes over time, can disclose illegal filling of wetlands, or unauthorized landfills. Infrared photography can yield
clues to the location of industrial discharges (including thermal discharges) into waterways. EPA even developed a mobile laser beam
device for precise measurement of the opacity (density) of smoke plumes at night from afar. Self-Policing. EPA has developed several
policies intended to create incentives for regulated entities to identify and report their own violations. These are discussed further,
below, under AMitigation of Penalties to Encourage Self-Policing.@ Nevertheless, the mainstay of any compliance monitoring
effort will be government inspectors in the field. Intelligent targeting of limited inspection resources is therefore essential.
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EPA=NM
It is the EPA’s job to regulated all aspects of the environment
Michael T. Olexa, Professor in the Department of Food and Resource Economics and Director of the Agricultural Law Center,
2004, (http://edis.ifas.ufl.edu/FE452#copy)
The Environmental Protection Agency (EPA) was established as an independent agency in the executive branch of the U.S.
government in 1970. EPA was created to regulate all aspects of the environment, especially the pollution of natural
resources. EPA is empowered to fulfill its purpose through many laws. These laws include RCRA (regulating the
disposal of solid and hazardous waste), CERCLA (providing for the cleanup of sites that pose a threat to human health
and the environment), FIFRA (regulating the use and disposal or pesticides), EPCRA (regulating planning for spills),
the ODA (regulating disposal into U.S. oceans and territorial waters), the CAA (regulating release of pollutants into the
atmosphere), and the CWA (regulating disposal into U.S. water bodies).
The EPA works with several different agencies to regulate the environment
John Veil, Head of Argonne National Laboratory, October 31, 2000, (http://web.ead.anl.gov/dwm/regs/federal/epa/
index.cfm)
The U.S. Environmental Protection Agency (the EPA or the Agency) is entrusted with protecting human health and
safeguarding the natural environment—air, water, and land. The EPA works with other federal agencies, state and local
governments, and Indian tribes to develop and enforce regulations under existing environmental laws. The EPA, which
is responsible for researching and setting national standards for a variety of federal environmental programs, delegates to states
and tribes the responsibilities for issuing permits and monitoring and enforcing compliance. Where national standards are not
met, the EPA can issue sanctions and take other steps to assist the states and tribes in reaching the desired levels of
environmental quality. Programs not delegated to the states are managed through the EPA's regional offices. In addition to the
various Headquarters program offices, the EPA maintains 10 regional offices and 17 laboratories across the country.
There are many sources of air pollution, including automobiles, power plants, factories, small businesses and household products. Under the Clean
Air Act, the EPA develops and enforces rules and regulations for all entities that emit toxic substances into the air. The Agency works
with state, local and tribal governments, other federal agencies, businesses and community groups to implement and enforce its regulations. EPA also
partners with scientists to study the causes and effects of pollution and to develop environmentally beneficial alternatives to pollution-generating
processes.
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EPA=NM
EPA’s authorization for lead-paint enforcement is primarily contained in Section 16 of the Toxic Substances Control Act
(“TSCA”). See 15 U.S.C. §2615 et seq. HUD’s authority, on the other hand, lies in the Residential Lead-Based Paint
Hazard Reduction Act of 1992 (the “Lead Paint Act”). See 42 USC §4821 et seq. TSCA and the Lead Paint Act are
enforced by regulations published by EPA and HUD at 40 CFR Part 745 and 24 CFR Part 35, respectively (collectively,
the “Regulations”). The Regulations are nearly identical because the Lead Paint Act requires EPA and HUD to enforce
these overlapping laws jointly. Although neither the TSCA nor the Lead Paint Act are new, both HUD and the EPA have
recently begun significant initiatives aimed at enforcing the Regulations.
Drinking water standards The EPA produces two sets of standards: National Primary Drinking Water Regulations and Nat
ional Secondary Water Regulations. Secondary Water Regulations are non‐enforceable standards that affect the taste, odor,
and cosmetic affects of water. Primary Drinking Water Regulations are enforceable standards of drinking water quality tha
t are based on public health principes. Many steps are necessary before a standard is finalized. For most contaminants and
disinfection byproducts, the EPA sets maximum contaminant goals (MCLG). These are non‐enforceable goals that are cre
ated by defining the level of a contaminant that would cause no harm and then adding a margin of afety to level. In some c
ases the MCLG of a contaminant may be set to zero because even a tiny amount is enough to cause disease. In other cases
the levels are higher. When different populations are more or less susceptible to the effects of a contaminant, the levels are
set to protect the most vulnerable population. MCLs are enforceable versions of the MCLG, set as close as possible to the
MCLG. When setting the MCL the EPA considers available treatment and detection technology, and the costs and benefits
associated with achieving the goal. Water Quality Monitoring Drinking water standards specify the levels of contaminant
s, disinfection agents, and disinfection byproducts that are allowed in drinking water. Water utilities are required to monito
r their water for chemical and microbial contaminants, and for levels of disinfectant and disinfection byproducts. Monitor
ing results must be reported to the state or to the EPA. The SDWA gives the EPA legal powers to enforce water quality sta
ndards. The EPA currently requires drinking water to be monitored for 90 contaminants. The EPA also keeps a list of cont
aminants that may have adverse heath effects and may be regulated in the future. SFPUC water meets all current EPA stan
dards.
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Practical considerations may mean that a subsidy that looks good on paper is, in fact, a bad idea. There are two aspects to this.
One, the country may simply not be able to afford the subsidy if it involves large financial transfers from the national treasury.
Two, it may not be feasible to administer the subsidy in a way that does not involve large administration costs including the
resources required to monitor, prevent and deal with abuse. Subsidy programmes involving cash payments to producers or
consumers are notoriously expensive to administer, since the authorities need to verify that each recipient is entitled to the
money. Cheating can be commonplace. For example, subsidized kerosene and LPG have been diverted to transport uses in
several countries, including Ecuador and India, depriving the poor of the fuel and causing safety problems.
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EPA is required by law to regulate emissions AND has to divert resources to do so.
National Journal 4/11/08 “Vanishing Act” http://www.nationaljournal.com/njcover.htm [ev]
However, in April 2007, the Supreme Court ruled [PDF] that the Clean Air Act requires EPA to regulate greenhouse gases
emitted by cars and trucks if agency scientists determine that the pollutants are a danger to the public. Responding to the
decision, EPA took seven months trying to pull together a regulatory program. It spent $5.3 million on contractor services
and dedicated 53 EPA employees to the project, which concluded that the gases are dangerous. The agency then drafted a
300-page proposal to regulate those emissions. In early December, the documents were sent to the White House and to
other federal agencies for review.
Conducting MERV activities is not inexpensive. For example, based on the experience of U.S. utilities and energy service
companies, monitoring and evaluation activities can easily account for 5- 10% of a project’s budget (see Meier and Solomon
1995; Raab and Violette 1994). Similarly, carbon monitoring efforts require specialized equipment, methods and trained
personnel that can be expensive for individual organizations to procure and maintain, and can result in similar percentage
expenditures (MacDicken 1996; Ravindranath and Bhat 1997). The cost will vary by size of area, scope of project, variation
within and between land use types, type of monitoring, and amount of training required.
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LINK—NUCLEAR POWER
Nuclear regulations are a subset of social regulations (laws to control activities that may negatively impact the
environment, health, and safety) that concern control of ionizing radiation from radiation-producing equipment and
from radioactive materials. The impressive safety record among nuclear technologies is due, in no small part, to the
work of radiation safety professionals and to a protection system that has kept pace with the rapid technologic
advancements in electric power generation, engineering, and medicine. The price of success, however, has led to a
regulatory organization and philosophy characterized by complexity, confusion, public fear, and increasing
economic costs. Over the past 20 years, regulatory costs in the nuclear sector have increased more than 250% in
constant 1995 U.S. dollars. Costs of regulatory compliance can be reduced sharply, particularly when health and
environmental benefits of risk reduction are questionable. Three key regulatory areas should be closely examined
and modified to improve regulatory effectiveness and efficiency: a) radiation protection should be changed from a risk-
based to dose-based system; b) the U.S. government should adopt the modern metric system (International System of
Units), and radiation quantities and units should be simplified to facilitate international communication and public
understanding; and c) a single, independent office is needed to coordinate nuclear regulations established by U.S. federal
agencies and departments. Key words: dose, economic costs, nuclear regulations, radiation quantities, regulatory
framework, risk.
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LINK: REBATES
Depending on the size of the rebate program, administrative costs usually run 10%-20%. Public awareness and advertising
expenses tend to be a significant budget item in rebate programs.
Monitoring and evaluation are important in rebate programs. Tracking the number of appliance purchases and the number of
old appliances recycled helps program personnel total the emissions reduced and energy saved. Allowing consumers the
flexibility to use the installers they choose makes the program easier to administer. Creating a list of approved contractors can
be time-consuming and perceived by consumers as restrictive.
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LINK - RPS
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David Clement et al., Consultant to the Center for Resource Solutions, ‘5 [June 17, International Tax Incentives for Renewable
Energy, http://www.resource-solutions.org/lib/librarypdfs/IntPolicy-Renewable_Tax_Incentives.pdf]
Investment tax incentives also often apply to smaller, customer-sited applications of renewable energy. These incentives are
typically awarded for renewable energy systems or equipment installed onsite to supply residential or commercial buildings.
Often, the cost of installing the equipment (in addition to the equipment cost itself) is included in the calculation of the tax
incentive. Since installation costs for these systems can be a significant percentage of the total costs, including installation in
the tax credit provides a stronger incentive to consumers and businesses to purchase these systems. Though some states and
countries have considered applying production-based tax incentives for these smaller systems, it is generally recognized that
the administrative costs of tracking production are significant; as a result, most income tax incentives offered for customer-
sited systems have remained investment-based. Tax incentives are offered for the purchase of renewable energy systems and
equipment by many states and countries.
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TERROR=FIRST TO GO
"Since September 11, 2001 our government has experienced an enormous increase in the need to protect its citizens
from acts of terrorism. Agencies across the government came together and established an effective, strong homeland security
presence. EPA responded immediately and continues to play a critical role in homeland protection. EPA's strategic
plan for homeland security was held up as a model for other Agencies and Departments. Every EPA program and
region has reallocated some of its resources to address important and essential homeland security functions.
"EPA's focus since September 11 has been to support our nation's effort at combating domestic threats while at the same time
ensuring that enforcement of environmental crimes continues. Homeland security is a critical new aspect of EPA's
mission, and we have dedicated resources to support this essential effort. At the same time we continue to achieve
significant success in prosecuting environmental crimes -- in fact, EPA's enforcement numbers in several categories are at
an all time high.
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"EPA continues to produce significant environmental results for the American people through its enforcement program, as
is evidenced by the more than 674 cases initiated last year alone. At the same time, EPA is proud to have the many
professional enforcement officials who could, did, and are stepping in to fulfill the counter-terrorism protection role for
the nation following September 11, 2001."
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REGULATIONS COSTLY
At its pinnacle is a thick volume of statutes in fine print. Under this volume is a stack more than two-feet high, also in fine
print, of EPA regulations. The EPA regulations are so lengthy, in part, because those who write them respond more to
pressures from the agency to enlarge and protect its power than to the public’s need for clear, concise rules. The problem
is not that the agency is oversolicitous of environmental quality; it is that it is oversolicitous of itself. So, the regulations
construe the agency’s power overbroadly and then react to the obvious instances of overbreadth by providing narrowly
defined exclusions and variances. Thus, under a statute regulating the handling of hazardous wastes, the agency takes
seventeen pages to define the concept of "hazardous waste"—the definition reads as if written by Monty Python’s John
Cleese.
The Framers of the Constitution envisioned states serving as laboratories in which different policies would be tried and
compared. State-by-state experiment, however, disappears with federal mandates. Yet experiment is what we need.
Scholars from diverse political perspectives have suggested pollution taxes, emissions trading, greater reliance on the
common law, and other radical alternatives to Washington’s command-and-control approach. Others, such as former EPA
administrator William Ruckelshaus, have criticized the federal approach under which there are separate regulatory
schemes for air pollution, water pollution, and so on. They suggest, instead, that plans be looked at holistically because
this approach often can produce better overall environmental quality at lower costs, implying flexibility at the local level.
Such innovation, however, threatens the EPA with its worst nightmare—loss of control. So, while the EPA feels compelled
to experiment, it hedges innovative programs with so much red tape that flexibility is largely illusory. States, on the other
hand, are more open to real experimentation; and it makes more sense to experiment on the state level.
Holmstead notes that EPA is never particularly popular with business. "When I was in the EPA air office, it was hard to
find a U.S. industry that we didn't regulate," he said. "What EPA does is impose very expensive regulations on the
business community. Therefore, EPA is viewed with a little more skepticism perhaps than some of the other agencies."
Every White House keeps a close eye on the agency for fear that its regulators will ignore the economic costs of
environmental protection, Holmstead said, adding, "EPA may not be well suited to understand the overall picture, so there
needs to be a counterbalance within the administration."
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REGULATIONS COSTLY
Accountability With the national takeover, democratic accountability goes by the boards for three reasons. First, the
massive job of controlling the nation’s environment from Washington encourages Congress to delegate its policy-making
responsibilities to the EPA. As a result, environmental policies are made by bureaucrats rather than officials who are
directly accountable to voters. Second, voters cannot effectively hold national officials accountable for how they resolved
local environmental disputes. Third, federal mandates give federal legislators and the president the means to take credit
for the benefits of environmental programs while placing blame for any ensuing costs on state and local officials. Popular
revulsion at such federal opportunism resulted in the passage of the Unfunded Mandates Reform Act of 1995. The act is
an attempt to keep Congress from imposing mandates on state and local governments without providing the necessary
funds to implement them. In other words, if Washington politicians take credit for the benefits promised by a new
mandate, they must also take responsibility for ensuing costs. But, as is well known, the act leaves in place all preexisting
mandates, including the entire corpus of federal environmental law. The national environmental laws are chiefly
regulatory mandates and sometimes tax mandates. For instance, Title V of the Clean Air Act amendments of 1990, which
require air-polluters to secure permits from states, turns out to be a mandate to tax. Under Title V, states must charge
permit fees at a level that the EPA deems sufficient to fund the bulk of the state’s air-pollution control program, not just
the cost of issuing the permit as the EPA suggests. Prior to 1990, most polluters did not have to get permits, yet they still had to comply with emission
limitations. Before the statute, state pollution officials had to get approval for their budgets from state legislators who also had to take responsibility for the taxes needed
to fund the budgets. After the statute, unelected federal officials supplanted much of the budgetary and taxing authority of elected state officials. The State and
Territorial Air Pollution Program Administrators Association and the Association of Local Air Pollution Control Officials, whose funding comes partly from the EPA,
vigorously supported the federal mandate for permits and support federal mandates in general.
First, both command and control and market-based approaches involve centralized, political goal-setting. Under such
decision processes, whether setting centralized standards or specifying fees, central goal-setting produces "winners" and
"losers." And that implies conflict-the sort of "highly adversarial" processes that Mr. Kellogg seems to suggest are
peculiar to command and control. Recent deliberations in California on its tradable emissions program-regarding what
baseline emissions to use for establishing credits, what counts as a credit, etc.-demonstrate just how contentious such
market-based approaches can be. Second, depending on the particular policy design and the targeted problem, market-
based approaches can also involve as high, or even higher, monitoring costs than some command and control regulations.
Indeed, one of the driving forces behind the "technology-mandate" approach of command and control measures is that
compliance can be easily determined: either the regulated firm has, or has not, put in place the required technology. By
contrast, some market-based approaches can require complex, ongoing measurement of emission outputs, constant
restructuring of fees, and monitoring of fee compliance (which can involve significant reporting and auditing).
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FUNDING KEY
Drinking Water During FY 2008, EPA, the states and community water systems will build on past successes while
working toward the FY 2008 goal of assuring that 90 percent of the population served by community water systems
receives drinking water that meets all applicable health-based standards. To promote compliance with drinking water
standards, states carry out a variety of activities, such as conducting onsite sanitary surveys of water systems and working
with small systems to improve their capabilities. EPA will work to improve compliance rates by providing guidance,
training, and technical assistance; ensuring proper certification of water system operators; promoting consumer awareness
of drinking water safety; maintaining the rate of system sanitary surveys and onsite reviews; and taking appropriate action
for noncompliance. To help ensure that water is safe to drink, the FY 2008 President’s Budget requests $842 million for
the Drinking Water State Revolving Fund.
Clean Water In FY 2008, EPA will work with states to continue progress toward the clean water goals to implement core
clean water programs, including innovations that apply programs on a watershed basis, and to accelerate efforts to
improve water quality on a watershed basis. Building on the progress toward clean water achieved over the past 30 years,
EPA is working with states and Tribes to implement the Clean Water Act by focusing on: scientifically sound water quality
standards; effective water monitoring; strong programs for controlling nonpoint sources of pollution; and strong discharge
permit programs. The Agency’s request continues the monitoring initiative begun in 2005 to strengthen the nationwide
monitoring network and complete the baseline water quality assessment of lakes and streams. These efforts will result in
scientifically defensible water quality data and information essential for cleaning up and protecting the nation’s waters.
Progress in improving coastal and ocean waters documented in the National Coastal Condition Report will be maintained
by focusing on: assessing coastal conditions; reducing vessel discharges; implementing coastal nonpoint source pollution
programs; managing dredged material; and supporting international marine pollution control. EPA will continue to
provide annual capitalization to the Clean Water State Revolving Fund (CWSRF). The FY 2008 President’s Budget
provides $688 million and will allow EPA to meet the Administration’s Federal capitalization target of $6.8 billion total
for 2004-2011 and enable the CWSRF to eventually revolve at a level of $3.4 billion.
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EPA, key to water security, has a limited budget, and water security is low priority
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
The Environmental Protection Agency is the government agency tasked with coordinating the water supply protection
efforts. An EPA representative told a congressional panel last year that the agency is putting together a manual to help water
authorities assess vulnerabilities as well as an emergency operations manual, which is due sometime in the middle of this year.
In addition, more coordinated information sharing networks are being established to link water officials electronically so that
information and warnings can be accessed quickly.
The EPA will spend $90.3 million this fiscal year on water-security issues, as set out in emergency legislation passed last
year. That compares with a scant $2.5 million the agency spent on bio-terrorism efforts in the fiscal year that ended Oct. 2001.
The National Infrastructure Protection Center run by the FBI sends out warning messages through the Association of Metropolitan Water Agencies, using that
organization as the water sector’s Information Sharing and Analysis Center. The ISAC acts as an early-warning system for water officials throughout the
country.
And a promising trend is developing: Jurisdictions are building in redundancy for their water infrastructure, according to Beering, who helped author
an interim report on domestic preparedness to potential terrorist attacks.
Luthy says that water systems should be interconnected to help ensure water quality “through application of multiple
barriers to contaminants in supply, treatment and distribution.” However, because the water distribution system is so
“fragmented” putting such a scheme into practice “has been a low priority unless prompted by chemical spill or natural
disaster,” Luthy wrote in a November editorial.
In addition, Luthy wrote, new technologies should be implemented to help trap contaminates at multiple points. This would
benefit large cities such as New York and San Francisco which currently rely on unfiltered water, which is a source of great
debate and some litigation in the water community. Those cities currently disinfect the water with chemicals such as chlorine.
The water industry is acting in a heightened state of alert in the post Sept. 11 era. Whether policy makers continue to provide
the funding for repairs, research and upgrades remains to be seen. And whether such efforts can be accomplished before a
major disaster strikes is anyone’s guess.
Make no mistake, I believe there are vital programs at EPA we must fund to improve the environment. I have been a long-
standing supporter of helping local communities provide safe drinking water and clean their wastewater. The federal
government has imposed national water requirements with an estimated $500 billion funding shortfall. We cannot abdicate our
responsibility to help close this gap.
• So I am disappointed yet again to see the green eyeshades at OMB cutting the Clean Water SRF. I am also disappointed with
cuts to the Section 319 nonpoint source water program. Farms helped with USDA money are not the only contributors to
nonpoint source pollution, so we must also combat this environmental problem through the EPA budget.
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
The vulnerability of the nation’s water supply isn’t in the headlines, it’s in the details of the country’s 54,065 public and private
water systems. For years, experts have warned about the need to upgrade, repair and thoroughly assess the risk of terrorists
targeting the nation’s water supply and distribution channels. Yet most of those warnings have been ignored, under-funded or
relegated to the back burner as policy-makers addressed “more important” projects.
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Rep. John D. Dingell, Chairman, House Committee on Energy and Commerce, February 4, 2008 ("Wynn blasts Bush EPA cuts"
http://energycommerce.house.gov/Press_110/110nr192.shtml)[JWu]
“Minority and low-income populations often live close to industrial zones, power plants and toxic waste sites,” Wynn
said. “These conditions have serious implications for the health and well being of people of color. For example, people of
color are three times more likely to be hospitalized or die from asthma and other respiratory illnesses linked to air
pollution. It is unconscionable for the Administration to shortchange the very programs aimed at addressing these
disparities.”
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The Bush administration may eliminate health standards for lead air pollution that keep the lead out of gasoline—and out of the air—
according to a preliminary staff review released this week by the U.S. Environmental Protection Agency.
This is one of the most startling pieces of environmental news to trickle out of Washington, D.C., in this era of jaw-dropping
regulatory pronouncements, because removing lead from gasoline is generally considered one of the most successful clean-air
strategies of the past 30 years.
Why Eliminate Lead Air Pollution Health Standards?
The EPA’s rationale for deregulating lead as an air pollutant is like a case study for convoluted logic. Basically, the EPA says that
concentrations of lead in the air have dropped more than 90 percent since 1976, when the agency started regulating the toxic heavy
metal as an air pollutant, and now argues that its success in keeping lead out of the air through regulation may justify taking lead off
the list of air pollutants the agency is required to regulate. Huh?
Instead of the usual “if it ain’t broke, don’t fix it” approach, the EPA seems to be contemplating the less common “if it’s working, then
break it” strategy.
U.S. Rep. Henry Waxman, D-Calif., who will take over as chairman of the House Committee on Government Reform when Congress
convenes in January, urged EPA Administrator Stephen Johnson to “renounce this dangerous proposal immediately” and said “this
deregulatory effort cannot be defended.”
Larry West, expert newsman, worked for CBS, ABC, CNBC Europe, CNET, founding news director at TechTV 5-19-08
("EPA rule change would increase air pollution in national parks" http://environment.about.com/b/2008/05/19/epa-rule-
change-would-increase-air-pollution-in-national-parks.htm)[JWu]
Opponents to change are worried that weakening the rules that govern air quality in national parks and wilderness areas will increase
air pollution and decrease visibility in many places that are already threatened. According to the National Parks Conservation
Association (NPCA), an advocacy group, one in three national park sites has air pollution levels that exceed health standards set by
the EPA, and yet the agency seems determined to implement a rule that will make that situation worse.
"It's like if you're pulled over by a cop for going 75 miles per hour in a 55 miles-per-hour zone, and you say, 'If you look at how I've
driven all year, I've averaged 55 miles per hour,' " said Mark Wenzler, director of clean-air programs for the NPCA, in an interview
with The Washington Post. "It allows you to vastly underestimate the impact of these emissions."
Jim Renfro, an air resources specialist at Great Smoky Mountains National Park, told The Post that the park no longer meets federal
smog standards, which is a public health issue, and visibility on summer days is 15 miles, down from the previous 80 miles.
"There are some days when it's unhealthy to breathe at the park, so that's a major concern. People come here to get away, and they
can't believe that sometimes they're better off where they came from," Renfro said. "We've got a long way to go."
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American Heart Association, 07 (based on newest date in article, "Air pollution, heart disease, and stroke."
http://www.americanheart.org/presenter.jhtml?identifier=4419)[JWu]
Exposure to air pollution contributes to the development of cardiovascular diseases (heart disease and stroke).
A person’s relative risk due to air pollution is small compared with the impact of established cardiovascular risk factors such as
smoking, obesity, or high blood pressure. However, this is a serious public health problem because an enormous number
of people are exposed over an entire lifetime.
Background
Until May of 2004, the American Heart Association had not issued any expert reviewed statement about the short-term and
long-term effects of chronic exposure to different pollutants. This was due to flaws in research design and methodology of
many pollution studies. During the last decade, however, epidemiological studies conducted worldwide have shown a
consistent, increased risk for cardiovascular events, including heart and stroke deaths, in relation to short- and long-term
exposure to present-day concentrations of pollution, especially particulate matter.
Elderly patients, people with underlying heart or lung disease, lower socioeconomic populations and diabetics may be at
particularly increased risk. More research is needed to find out the differential toxicity of various constituents of air pollution.
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Toxic Waste
Rep. John D. Dingell, Chairman, House Committee on Energy and Commerce, February 4, 2008 ("Wynn blasts Bush EPA cuts"
http://energycommerce.house.gov/Press_110/110nr192.shtml)[JWu]
The Superfund program would also suffer under the President’s FY09 Budget request. At a time when progress on
remediating sites has fallen dramatically, funding for remedial actions at these sites would be cut by $4.5 million. It is well
documented that there is not enough funding for sites requiring cleanup.
“By EPA’s own estimation, one in four Americans lives within four miles of a Superfund site,” Wynn added. “There are
numerous toxic waste sites on the National Priorities List where cleanup has been delayed due to a lack of funds. The cuts
to the remedial program proposed in the President’s FY 2009 cuts would exacerbate this problem.”
Robert M. Anderson, senior counsel at the law firm of LeBouef, Lamb, Greene, & MacRae LLP; and Paul C. Freeman, Esq.,
an associate at LeBouef, Lamb, Greene, & MacRae, Jan/Feb 05 (Waste and Wastewater Products, Vol 5, No 1, http://www.wwn-
online.com/articles/50916/)[JWu]
Immediately following the attacks on the World Trade Center on September 11, 2001, the city of New York and a group of federal,
state, and local authorities took steps to secure and maintain the city's lifeline: its drinking water supply system. The Federal
Bureau of Investigation (FBI), the United States Army Corps of Engineers, and the state and city of New York quickly negotiated an
agreement to evaluate restrictions on access to the city's drinking water facilities and to strengthen measures to prevent biological,
chemical, and radiological contamination. The swift action taken in the days that followed 9/11's horror and chaos underscores the
critical importance of water resources to public health and our collective psyche.
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Larry West, expert newsman, worked for CBS, ABC, CNBC Europe, CNET, founding news director at TechTV
10-2-07 (http://environment.about.com/b/2007/10/02/epa-decision-on-air-quality-may-cause-24000-deaths-
annually.htm)[JWu]
As many as 24,000 Americans could lose their lives every year because of the EPA’s refusal to follow the advice of medical
professionals to tighten U.S. air quality standards that control soot, dust and other particulate matter, by allowing one less microgram
per cubic meter of air annually, according to a cost-benefit analysis released Friday.
The analysis also shows that the estimated $1.9 billion auto manufacturers, power plants, refineries and other companies would have
paid each year to implement tighter standards would have been eclipsed by up to $51 billion in annual savings on health care costs,
work and school attendance, and other benefits.
The EPA is not allowed to consider the cost of a new regulation—even though the agency is required to calculate the costs—but it is
required to consider the health benefits. Many studies have linked exposure to soot, dust and other particulate matter to respiratory and
cardiac disease and premature death.
Michael Jacobs Senior Special Adviser to UK Prime Minister for environment, energy and climate change policy, head
of the Fabian Society, the UK's senior think tank. Ex-ESRC Research Fellow at London School of Economics and at the
Centre for the Study of Environmental Change, Lancaster University. 1991 "The Green Economy", pg 9 [JWu]
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Dale W. Jorgenson and Peter J. Wilcoxen, Profs – Econ, Harvard University 1990. “Environmental regulation and U.S. economic
growth.” RAND Journal of Economics, Vol. 21 Issue 2, p314-340.
In Section 3 we show that pollution abatement has emerged as a major claimant on the resources of the U.S. economy. The long-run
cost of environmental regulation is a reduction of 2.59% in the level ofthe U.S. gross national product. This is more than 10% ofthe
share of total government purchases of goods and services in the national product during the period 1973-1985. Over this period, the
annual growth rate ofthe U.S. economy has been reduced by .191%. This is several times the reduction in growth estimated in
previous studies.
Lead is highly toxic and can cause severe nerve damage and impair physical and mental development, especially in children. Lead
also enters the atmosphere from coal, oil, iron and steel production; lead smelters; battery production; solid waste; and tobacco smoke.
Lead is one of six air pollutants the EPA is required to review every five years to make sure the health standards are tough enough to
protect the public. The other air pollutants are ozone, soot, sulfur dioxide, carbon monoxide and nitrous oxides.
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Pollution Enforcement
No EPA enforcement means no environmental regulation, allowing polluters to get off scot free
Eric Schaeffer, ex-director of EPA's Office of Regulatory Enforcement, director of the Environmental Integrity Project at
the Rockefeller Family Fund, July/August 2002 "Clearing the air", washingtonmonthly.com/features
/2001/0207.schaeffer.html [JWu]
SHRINK THE POLICE FORCE. Environmental law, just like any other, is a dead letter if not enforced. The Bush administration's
first step was weakening the government's ability to uncover violations of important requirements like tailpipe emission standards.
Each year, about 25 million tons of smog-causing nitrogen oxide is released into the air, about half of it from cars, diesel trucks, and
construction equipment. For several years, the diesel engines of large long-haul trucks have been required to meet emission standards
with catalytic converters that clean exhaust gases. But manufacturers realized that they could beat the system by developing catalytic
converters that would run properly during EPA tests, but whose pollution controls could be turned off on the highway. In November
1998, EPA settled with nine diesel engine manufacturers--practically the entire industry--forcing the companies to spend about
$1 billion to phase out these illegal engines. It was a textbook example of how enforcement is supposed to work: The settlements
will eliminate about 1.3 million tons of illegal emissions a year, or about 10 percent of the total nitrogen oxide pollution from mobile
sources. But winning a settlement like that takes thousands of hours of staff time, and Bush's Office of Management and Budget
knows it. Cutting the enforcement budget by 13 percent, as President Bush has proposed, would hobble the EPA's ability to
uncover and stop such malfeasance.
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EPA KEY
The EPA’s Fiscal Year (FY) 2008 Annual Performance Plan and the Congressional Justification requests $7.2 billion in
discretionary budget authority and 17,324 Full Time Equivalents (FTE). This request reflects the Agency’s efforts to work
with its partners towards protecting air, water, and land, as well as providing for EPA’s role in safeguarding the nation
from terrorist attacks. This request echoes the Administration’s commitment to setting high environmental protection
standards, while focusing on results and performance, and achieving goals outlined in the President’s Management
Agenda. The budget builds on EPA’s long record of accomplishments since its founding 37 years ago. The agency and
nation as a whole has achieved enormous successes. This budget builds on these successes by strengthening our
geographic initiatives, better leveraging our nation’s resources, strengthening citizen involvement, maintaining our
enforcement capabilities, and implementing the President’s commitment to efficiently manage Federal resources.
Homeland Security Following the cleanup and decontamination efforts of 2001, the Agency has focused on ensuring we
have the tools and protocols needed to detect and recover quickly from deliberate incidents. The emphasis for FY 2008 is
on several areas: decontaminating threat agents, protecting our water and food supplies, and ensuring trained personnel
and key lab capacities are in place to be drawn upon in the event of an emergency. Part of these FY 2008 efforts will
continue to include activities to implement a common identification standard for EPA employees
Even a small water terror attack could devastate America—the EPA is critical to protect us.
Georgetown Law Journal, April 03 “NOTE: A New Instrument in National Security: The Legislative Attempt to
Combat Terrorism via the Safe Drinking Water Act” 91 Geo. L.J. 927 Lexis [ev]
In January 2002, the FBI warned water officials that Osama Bin Laden's al Qaeda terrorist network had considered
attacking water distribution systems in the United States. 1 Public water systems could be attacked on multiple fronts,
ranging from the intentional contamination of a water supply to a physical attack on a treatment plant, distribution system,
or water source. Any attack on a public water system could be devastating: A strike on a chlorine disinfectant tank alone,
for example, could result in the release of an airborne toxic chlorine cloud which, depending on exposure levels, could
prove fatal for a widespread population. A 1998 Presidential Decision Directive listed our nation's water supply as one of
2
twelve areas critical to the functioning of the country that remained vulnerable to non-traditional attacks. 3 However, it
was not until the September 11, 2001 terrorist attacks on American soil that Congress exhibited a tangible interest in
protecting public water systems. To this end, Congress passed the Public Health Security and Bioterrorism Preparedness
Response Act of 2002, which, among other things, made several amendments to the Safe Drinking Water Act ("SDWA").
4
5
Known as the "Drinking Water Security and Safety amendments," these additions transformed the Environmental
Protection Agency ("EPA") into a key player in the development and enforcement of national security policies regarding
public water systems.
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EPA KEY
The SDWA was enacted in 1974, primarily as a public health statute, "to ensure that every person in this nation, wherever
they are, receives clean, safe drinking water every day." The SDWA regulates both underground sources of drinking
7
water and public water systems ("PWSs") in order to maintain acceptable drinking water quality standards. With
8 9 10
regard to underground water sources, the SDWA establishes an Underground Injection Control program to regulate
11
injection wells, which are used by many industries as a way of disposing cheaply of waste products. The EPA regulates
12
five different classes of injection wells under this program, with varying levels of control over each class depending upon
the type of waste and its proximity to an underground source of drinking water. With regard to the 168,190 PWSs falling
13
under its jurisdiction, the SDWA requires the EPA to promulgate National Primary Drinking Water Regulations in order to
regulate contaminants that may adversely affect public health. 14 Consequently, the EPA currently regulates eighty-seven
[*929] contaminants by establishing maximum contaminant levels and by requiring water treatment plants to employ
15
certain treatment techniques and monitor and report the results of these techniques. 16 The National Primary Drinking
Water Regulations apply to a variety of contaminants in water, including microbial, chemical, and radiological pollutants.
17
Prior to the Drinking Water Security and Safety amendments, the SDWA contained five major enforcement mechanisms.
18
First, SDWA section 1414 gives the EPA general authority to issue administrative orders or pursue injunctive or other
civil relief in response to PWS violations of National Primary Drinking Water Regulations. 19 This provision enables the
EPA to enforce maximum contaminant levels and water treatment methods. Second, section 1432 provides for civil and
20
criminal penalties against any individual who tampers with or attempts to tamper with a PWS. Third, section 1445
21
enables the EPA Administrator (the "Administrator") to require PWSs to maintain records, make reports, conduct
monitoring, and provide information to the EPA as is reasonably required to ensure SDWA compliance. Fourth, section
22
1449 permits citizens to sue PWSs that violate the regulations promulgated under the SDWA. Finally, section 1431
23
provides the EPA unique emergency authority to pursue civil actions or issue administrative orders in cases where there
may be an imminent and substantial endangerment to public health based on a present or likely contamination of a PWS
or underground source of drinking water. To exercise authority under section 1431, the EPA must conclude that the
24
relevant state or local authorities have not adequately acted to protect public health and that a contaminant which is
present or likely to enter the system may cause an imminent and substantial endangerment to health. Once the EPA so
25
concludes, it may use section 1431 to respond to potentially dangerous situations that would otherwise go unaddressed
due to gaps in enforcement authority. [*930] For example, the EPA could use section 1431 to address contamination
26
caused by new industrial pollutants that are not yet subject to regulations but that may still cause health problems in the
population. Collectively, these five enforcement mechanisms empower the EPA to protect the public water supply from
27
regulated and, in some cases, unregulated contaminants that could threaten public health.
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EPA KEY
The Drinking Water Security and Safety amendments also enhance the SDWA's emergency provision, section 1431, which
previously allowed the EPA to protect a water supply only in cases of imminent and substantial endangerment [*932] to
public health based on present or likely contamination. Revised section 1431 now permits the EPA to act when there is a
44
"threatened or potential terrorist attack" that presents an imminent and substantial danger to public health. 45 This
amendment changes the EPA's preexisting authority by allowing the EPA to act even when there is no actual
"contamination" of a water supply. In essence, the EPA now can act to protect both the water supply and its physical
46
infrastructure (such as pipes, distribution facilities, water collection, treatment and storage facilities) from any type of
terrorist or other intentional attack, regardless of whether the attack involves a contaminant or not. 47
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EPA KEY
Only the EPA has the regulatory power necessary to protect water systems.
Georgetown Law Journal, April 03 “NOTE: A New Instrument in National Security: The Legislative Attempt to
Combat Terrorism via the Safe Drinking Water Act” 91 Geo. L.J. 927 Lexis [ev]
The EPA also has broad authority under section 1431 to issue administrative orders against states and innocent third
parties, subject to the "arbitrary and capricious" standard of review. This authority becomes relevant because [*943]
103
terrorism differs from the problems that the EPA has previously addressed using section 1431. It is doubtful that the EPA
would be able to hold a terrorist financially responsible for damages, as it would a typical respondent, such as an
industrial facility that leaked pollutants near a groundwater source. Because it would be difficult to hold terrorists
accountable, it is crucial that the EPA has the authority to reach beyond those parties that are or would be directly
responsible for a public health hazard, and to order other parties, such as the PWS, to act when necessary. The EPA is not
required under section 1431 to demonstrate that the respondent caused or contributed to an endangerment before issuing
an order or taking other action against the respondent. In the past, the EPA has issued administrative orders to parties
104
mandating that they take initial steps to abate an environmental danger, such as gathering data, conducting studies,
monitoring pollutants, and modifying their behavior, even before their contribution to the contamination was firmly
established. The EPA may even use its authority over third parties to order state entities to act to protect the public
105
health. Tenth Amendment jurisprudence provides controlling authority for analyzing "whether the method by which
Congress has chosen to regulate [pursuant to its Article I powers] invades the province of state sovereignty." Although
106
the Tenth Amendment has generally been read as protecting state sovereignty, the courts have made clear that states are
107
subject to federal laws and regulations of general applicability, much like private individuals. Therefore, section 1431
108
would apply to states when states act in a way that renders them a part of the regulated community. Under the Supreme
109
Court's Tenth Amendment jurisprudence, however, the federal government is constitutionally prevented from
"commandeering the legislative processes of the states by directly compelling them to enact and enforce a federal
regulatory program." The distinction between legitimate regulation and commandeering lies in the nature of the coerced
110
action. If the state is forced to exercise its governing authority over its citizens, then the state's sovereignty has been
compromised. Consequently, when issuing a section 1431 emergency order, the EPA could regulate the state in the
111
state's capacity as a PWS, a pollutant discharging entity, [*944] or in any other relevant capacity other than as a
governmental entity. The EPA, for example, could order a state agency to clean and remove materials the state leaked into
an aquifer or require a state-operated PWS to construct a more secure treatment facility. However, the EPA could not
112
order a state to prosecute its citizens for violating the SDWA or force a state to create its own set of laws for
environmental problems. Under section 1431, then, the EPA has expansive authority to take remedial measures similar
113
to those found in the common law, and to take action against third parties when the protection of public health so requires.
This broad authority should be embraced as a valuable mechanism for protecting PWSs from attack.
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EPA KEY
EPA is vital to water security.
Faye Anderson, President at Douglass Policy Institute, 2003 “Security and Water”
http://www.gale.com/pdf/samples/sp656113.pdf [ev]
Even prior to the events of September 11, 2001, the security aspects of water resources and water systems were a national
priority. In 1998, President’s Decision Directive 63 established the National Infrastructure Protection
Center, and made the U.S. Environmental Protection Agency the lead agency responsible for the water-supply sector.
Large public and privately owned water utilities are required to undergo vulnerability assessments to evaluate their risks
and vulnerabilities to terrorist attacks and efforts to prevent them. A national Critical Infrastructure Protection Advisory
Group began meeting early in 2001 and set up an Information Sharing and Assistance Center to coordinate threat
information. Congress has allocated funds to support counterterrorism efforts in the states and at drinking water and
wastewater utilities. The Environmental Protection Agency has disseminated information on strategies for large, medium,
and small utilities to counter terrorism. Training is being offered in cooperation with research centers and associations to
educate utility officials in conducting their vul-nerability and risk assessments. These efforts will put procedures into place
that will help prevent, assess, and respond to attacks, as is done with natural disaster-preparedness planning. These
counterterrorism efforts are vital to the future security of water systems and water supplies.
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Environmental terrorism is a concern to the government as it can potentially have even more significant consequences than
conventional terrorism, and it can be carried out with conventional weapons (as opposed to weapons of mass destruction). The
potential for disrupting society and causing human deaths is substantial. Directing conventional weapons against environmental targets
can cause greater human health and economic damages with lower risks to those carrying them out. As environmental scarcities in-
crease, the potential for damage to natural resources takes on even greater importance. Water resources and water systems are
viewed as vulnerable to terrorist attack for several reasons. First, they are vital to everyday life and economic activity. Thus, if
disrupted or altered, the action has a great impact on society and would garnish a great deal of publicity as a result. Second, they
have played a prominent role in military history and terrorists often model their strategies from military-type operations. Third, water
resources and water systems are typically very accessible to the general public. This is especially true of distribution systems and
reservoirs. Many large dams even are tourist attractions. For these reasons, water resources and water systems can be viewed as
both a tool for and target of terrorist actions.
Water can also be used as a tool or weapon of terrorism. Because it is fluid, water can be used as a delivery vehicle to carry destructive
agents throughout the ecosystem, water system, and to human and animal populations. Destructive agents could include
microbiological agents—bioterrorism— or toxic chemicals. For example, terrorists could drop a concentrated water-soluble conta-
minant, chemical or biological, near an intake pipe. In the best-case scenario, the contaminant would be detected as it entered the
water treatment plant. The plant would be shut down while the contaminant was neutralized, and potable water service to the area
would be interrupted temporarily. In the worst-case scenario, the contaminant would go undetected and would affect the health of
water users, and potentially cause significant health and economic damages. Rivers and water supply reservoirs are particularly
vulnerable to this type of contamination attack. Society also has seen the damages caused by nonterrorist occurrences involving
microorganisms. The 1993 Cryptosporidium outbreak in Milwaukee, Wisconsin killed over a hundred people, affected some 400,000
more, and was estimated to have caused over $37 million in lost wages and productivity. A larger city with a larger water system could
have incurred much greater human and economic losses. Although attack by aerosol contamination is considered the most serious
terrorist threat, the possibility of waterborne contamination is increasingly feared. The Centers for Disease Control lists the following
as Category A biological agents of high concern: smallpox, anthrax, botulinum toxin, tularemia, and hemorrhagic fever viruses. Under
certain circumstances, these biological agents and toxic chemicals could be considered as weapons of mass destruction
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Water resources and water systems are viewed as targets for terrorist attacks for the same reasons they are targets during periods
of war. Water resources are a prime infrastructure target for destruction or compromise by terrorist acts. For example, terrorists could
attempt to blow up a dam to flood a particular area. The psychological impact of such an act would be very great. However, it would
take a very concerted effort to blow up a large dam.
With a relatively small explosive device, terrorists would not be able to cause significant structural damage to an entire dam.
However, they could target the spillway gates to cause significant flooding downstream, or try to flood the dam itself to interrupt
power generation. Pumping stations could also be targeted. Loss of flow and pressure would not only affect water customers, but
wreak havoc with firefighting abilities as well. Chlorine containers, used in water treatment processes, could also be targeted. Another
concern is if terrorists were able to rapidly open or close major valves—an action that would result in numerous main breaks
throughout the system. Backflow also is a serious concern. A public water system has relatively unprotected access to the distribution
system at certain locations. Given sufficient understanding of water systems, a terrorist could distribute toxic chemicals throughout a
neighborhood or pressure zone without detection in most places. These potential actions would rival natural disasters in the stresses
they would place on those responsible for the systems and those receiving services from them.
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BIOTERROR!
Writing an article on bioterrorism for the popular press is as difficult as it is important. How to be factual, clinically sound and responsive to widespread
anxiety and fear is the task. Events of Sept. 11 form the frame. Bioterrorism is real. We need to be informed, cautious and alert.
At the same time, we need to understand the range, risk and response to the threat and not be panicked into holing up at home,
avoiding the mailbox or loading up on Cipro. Imagination is scarier than fact. "Biological warfare" can be worse than poison
gas or conventional weaponry, but it is also easier for us to limit casualties. Unfortunately, there are not a lot of things the
average person should or could do. Don't buy a gas mask. The key to an appropriate, quick response is with the professionals.
What are the facts? There are four likely bioterrorist weapons; anthrax (Bacillus anthracis), plague (Yersinia pestis), botulism
toxin (Clostridium botulinum) and smallpox (variola major). Most U.S. physicians have never seen a patient infected with any
of these agents, yet our health facilities will clearly be our first line of defense. The rapid identification of the event and the
pathogen could literally save thousands of lives. In truth, we were not prepared for either the events of Sept. 11 or the
subsequent anthrax letter attacks, but we are closing the gap quickly. In fact, given the potential, the public health response so
far has been very effective and should be reassuring to the public. Anthrax is the bioterrorism agent being used in the United
States today. It has a colorful history, starting with its description as the fifth plague of Egypt in 1491 B.C. It was the first
identified "infectious disease" and one of the first targets of an effective vaccine. Anthrax has been used in warfare since World
War I (by the Germans). Japan developed and used anthrax as a biological weapon in World War II, and the U.S., along with
almost all major powers, developed anthrax bombs during World War II, but did not use them. U.S. biological weapons were
destroyed in the 1970s. The Soviet Union, unfortunately, continued the clandestine development of anthrax, best evidenced by
the unfortunate accident in 1979 in Sverdlovsk where more than 60 workers and local residents died of inhalation anthrax after
an explosion in a secret biological weapons plant. More recently, Iraq used anthrax on Iran and had deployed anthrax-filled
SCUD missiles during the Gulf War. Sophisticated anthrax and related technology is available today on the international black
market. Anthrax, when outside a living being, is generally in an inactive spore form. It can survive in the ground for decades.
When anthrax is used as a bioweapon, it is generally designed to induce inhalation anthrax. To get the spores into the lungs, the
organism needs to be aerosolized. Getting the spores into a powder fine enough to do this is technologically difficult, but once
in the proper form, delivering the aerosol is straightforward using standard commercial dry spraying equipment. The anthrax
being used is very sophisticated and forms a fine aerosol when a letter containing it is opened. The inhaled organisms land in
the air sacs of the lung and are transported to the lymph nodes in the center of the chest. There, the spores "germinate" and
begin to multiply. These now active bacteria produce several toxins that are primarily responsible for the hemorrhage, edema,
tissue necrosis and, ultimately, death of the victims. As a result of these toxins, patients often die even after appropriate
antibiotics are given. This was true of all three of the recent anthrax deaths. Inhalation anthrax is a two-stage disease.
Symptoms first develop one to two days after inhalation. The initial illness is flu-like and can spontaneously resolve or
improve. A chest X-ray may be normal or look like a mild pneumonia. A few days later, the patient returns extremely ill with
high fever, sweating, short of breath and with chest pains. The chest X-ray at this time is unusual because the middle of the
chest is often enlarged (very uncommon in other types of pneumonia). Half will have an unusual type of bloody meningitis.
This is what tipped off doctors to the first case in Florida. Shock and death occur rapidly. Unfortunately, death of an index case
(the first case in any event) is likely, even if the diagnosis is made. In contrast to recent articles, Ciprofloxacin is not the only
drug that can be used. The current anthrax organism could be effectively treated with amoxicillin or doxycycline. In addition,
several other antibiotics in the family of fluorquinolones could be used. Recognition that one may have inhaled spores is
important since swift action is required. Treatment is continued for 60 days for suspected cases. There is a window of several
days to weeks, as long as the individual stays well, to start treatment. If symptoms start, treatment must be started immediately.
Fortunately, individuals in the first symptomatic phase of this illness also do well with treatment. If a vaccine were available, it
would not be used to treat exposures, but might be used among members of rapid response teams or people with occupational
exposure (such as postal workers). Currently, there are technical problems with the vaccine, but I believe it will be available
again soon. Anthrax contracted through the skin is distinctive and easier to diagnose. The infected area turns black. In fact, the
name anthrax comes from the Greek word for coal suggested by the characteristic skin color.
<<CONTINUES NEXT PAGE>>
BIOTERROR!
Anthrax can also cause intestinal illness when eaten with food. Fortunately, both oral and skin anthrax are rarely fatal.
It is also useful to remember that animals, especially cats, are also susceptible to anthrax. Indeed, rapidly dying cats might be
the "canaries in the coal mine" alert that a clandestine attack has occurred. The reason terrorists are using anthrax is easy to
understand. It has a high fatality rate if untreated, a long incubation period and non-specific early symptoms. All of these facts
induce panic. The terrorists have ample time to get out of town and a vaccine exists that can protect them. The sophisticated
powder is easy to disguise or hide and the delivery system can be crude or sophisticated. The good news is that anthrax is
sensitive to antibiotics, person-to-person transmission doesn't occur and exposure can be readily addressed by a competent
health care system and a responsive, vigilant public. ACE Hardware announced it would begin selling home test kits for
anthrax. This is a bad idea. First, these kits (similar to a home pregnancy kit) have both false positives and false negatives.
Non-anthrax bacteria can turn these kits positive, causing unnecessary panic, while they may not detect very small numbers of
anthrax spores that could still make people sick. The most important reason not to use them is that any potential anthrax
exposure is a potential criminal act. People who think they have been exposed to anthrax need to immediately call the
authorities. Would anyone think it reasonable to have people use "home evidence collection kits" in a murder case, rather than
calling the police? Recently, a report also circulated that suggested that all pneumonia cases in the U.S. should be treated for
anthrax. First, the initial illness from inhalation anthrax may not be pneumonia. One of the postal workers who recently died
went to an emergency room with vague symptoms and was sent home. He did not have pneumonia. The failure of the system
was not recognizing the exposure history. Second, Ciprofloxacin is not a very good antibiotic for community-acquired
pneumonia. We should use antibiotics whenever there is a reasonable risk, but the key is identifying the exposure, not
panicking into treating everyone with the flu or pneumonia. Finally, for more than two weeks, people have asked me about
having a supply of Cipro at home "just in case." This powerful antibiotic is not only very expensive, but potentially dangerous
if not monitored by a physician. All antibiotics can cause medical problems when used incorrectly. Hospitals and the health
infrastructure have taken steps to assure adequate local and national supplies of drugs. They will be available should we need
them. If we were worried about being invaded by Canada, I hope we wouldn't give every man, woman and child in the U.S. an
assault rifle. We would let the army, police and National Guard organize a defense. Bioterrorism is a reality and, as a society,
we are having trouble dealing with it. The events of Sept. 11 will change our society forever. People in England have had to
live with civilian terrorism for some time, as have most of Europe and virtually all developing countries. It is useful to know
the facts, but this particular threat is best handled by professionals. We need to keep this threat and any additional issues in
perspective. We must stay alert, be prudent, and know what to do, but also continue to lead normal lives. What is currently
happening is exactly what the terrorists want. We need to stay rational, get the facts, look out for the profiteers, and, whatever
we do, not panic.
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BIOTERROR!
Bioterrorism risks thousands of deaths
Charles J. Hanley, writer for Associated Press, 11-02-05 http://www.foxnews.com/story/0,2933,174323,00.html
They're among Earth's most common germs — clostridia perfringens, a cause of food poisoning, a specimen for research. But this pathogen can
also be a weapon: Iraqi scientists worked for years to mobilize this "Agent G" for Saddam Hussein's wars. In an America nervous over bioterrorism,
new laws clamp controls on clostridia and other "select agents," demanding registrations, reporting, background checks on scientists. Egypt, in a
region roiled by terrorism, has no such laws, although the bacteria at Ain Shams University are kept in a locked refrigerator, accessible by one
authorized technician, in a laboratory protected by foolproof electronic keys, said Nabil Magdoub, microbe collection director. "We have to be alert,"
he said, but not "unreasonable." After all, Magdoub said, any hospital is also rife with dangerous microorganisms. "The American people have
become so sensitive towards a lot of normal, ordinary matters," he said, echoing a sentiment heard increasingly in America, where microbiologists
fear that ever-stricter controls might stifle their ability to exchange samples and conduct research. Four years after the Sept. 11 attacks,
terrorist use of disease agents to inflict mass casualties looms more and more as the bottom line of America's sum of all
fears. Tom Ridge former homeland security secretary, has said authorities don't believe terror groups can build nuclear bombs, and so bioweapons
become the greater threat. "Anthrax is a concern," said Donald Van Duyn of the FBI's Counterterrorism Division. "You could do as much
damage with anthrax and other substances" as with a nuclear bomb, the FBI analyst said in a Washington interview. One attack
scenario now used in U.S. planning sees more than 300,000 people in an American city exposed to aerosolized anthrax bacteria
spread by terrorists via a truck sprayer, with more than 13,000 dying. The fear is reflected in the U.S. budget's bottom line as well:
Spending on civilian "biodefense" has leaped 18-fold since 2001, to $7.6 billion this year. Project Bioshield to develop bioterrorism
countermeasures, awarded its first contract last November, $877 million for 75 million doses of a new anthrax vaccine. The anthrax scare began
when someone mailed anthrax powder through the U.S. postal system in late 2001 and five people died. As a result, "I'd say we get five white-
powder threats a week, people calling saying, 'I found white powder. What do I do?'" said Van Duyn. Because of the high quality of those 2001
anthrax spores, however, experts believe the perpetrator, still at large, was not linked to foreign terrorists, but possibly to the U.S. government's own
anthrax program. That research began decades back as an offensive weapons program, but is now considered defensive. Even a terror group as well-
financed and educated as Japan's Aum Shinrikyo, whose homemade sarin chemical agent killed 12 people in 1995, failed to isolate a virulent strain
in four years' work on anthrax. Usama bin Laden's Al Qaeda also pursued anthrax in Afghanistan, captured documents showed. But it turned the job
over to a Malaysian with a mere bachelor's degree in biology, U.S. investigators found. He, too, apparently failed to find a virulent strain — let alone
a workable way to "weaponize" anthrax — before being arrested in 2001 after returning to Malaysia. Drying and refining anthrax spores into
particles readily inhaled, and then engineering equipment to spread them extensively, is a formidable challenge, U.S. congressional researchers noted
in a 2004 study. "Even a Ph.D. microbiologist doesn't know the dark arts of putting microbes into weapons," said Jonathan Tucker, a bioweapons
expert with California's Monterey Institute for International Studies. It took Iraqi scientists five years to weaponize anthrax in the 1980s. Meanwhile,
others in Saddam's secret program were working on "Agent G," U.N. arms inspectors later learned. The toxin-spewing clostridium perfringens,
applied to shrapnel, would kill the wounded by spreading virulent gas gangrene in their shrapnel wounds. The Iraqis apparently never weaponized
Agent G, however, and eventually reported to inspectors they had destroyed all 900 gallons they made. Today clostridium perfringens is one of 49
microbes on the U.S. list of "select agents" considered potential "severe threats." American laboratories handling the germ must register with
the government, their personnel must undergo background checks, and transfers of cultures must be reported. That list's length, from the toxin abrin
to the plague bacteria yersinia pestis tells some that billions of U.S. dollars won't go far, since only three on the list — anthrax,
smallpox (and botulinum toxin — are being addressed so far in stepped-up biodefense research programs. And that's not counting any
new genetically re-engineered microbes. "What's going to come at you is impossible to predict," molecular biologist Roger Brent told a U.S. House
panel in July. Others question whether anything will come, in view of what Tucker calls Al Qaeda's "gap in technical sophistication." Milton
Leitenberg, a bioweapons authority at the University of Maryland, contends the threat has been "systematically exaggerated." Few question the need,
however, to tighten security at microbe collections worldwide. Only 500 of the estimated 1,500 major repositories — which maintain, exchange and
sell samples for research and diagnostics — subscribe to the World Federation for Culture Collections' voluntary security guidelines. Magdoub's
Egypt Microbial Culture Collection is one. But a team of Egyptian microbiologists noted in a recent study that smaller collections have proliferated
in Egypt, which has no "biosecurity" laws. Team member Youssef Hamdi told The Associated Press all such resources should be combined in a single
"National Culture Collection" to "insure purity, conservation and security." Internationally, "the problem is the ones you don't know about," said
Barry Kellman, director of the International Weapons Control Center at Chicago's DePaul University. Perhaps one-third of the world's microbe
collections are poorly protected, he estimated. The World Health Organization plans a "guidance document" next year promoting laboratory
biosecurity, but only individual governments can enforce restrictions. Kellman, meanwhile, agrees with those who doubt that Al Qaeda, "in a cave in
Afghanistan," poses a bioterrorism threat. He worries more about a homegrown menace, asking, "What if Ted Kaczynski" — America's
notorious Unabomber — "had been a biology professor instead of a math professor?"
DISEASE MODULE
Georgetown Law Journal, April 03 “NOTE: A New Instrument in National Security: The Legislative Attempt to
Combat Terrorism via the Safe Drinking Water Act” 91 Geo. L.J. 927 Lexis [ev]
Where national security and environmental goals coincide, section 1431's emergency powers could be used to enhance public health
protections. Many of the actions the EPA could take to protect water supplies from terrorism would inherently protect the water supply
from more standard types of contamination as well. For example, several water systems currently store their treated water supply in
uncovered finished water reservoirs. 123 These reservoirs hold the water immediately before direct distribution to the public. 124 But as
their name indicates, they are uncovered and open to the atmosphere. 125 Precautionary measures, such as requiring PWSs to cover
their finished water reservoirs or to construct secure storage tanks, will not only protect these water supplies from terrorist attacks, but
also will protect the water supply from more common contaminants, such as airborne chemicals, precipitation, insects, and other
organic matter. The EPA may not have been previously justified in using its emergency authority to take such action because of the
difficulty of proving that an imminent and substantial endangerment would likely result from standard atmospheric contamination. In
today's circumstances, however, uncovered finished water reservoirs present an even greater risk because they are readily accessible to
intentional contamination. The EPA could therefore look to the remedies it has sought in previous cases as a comparative model in
addressing [*947] these new situations. For example, the EPA ordered AK Steel Corporation to install water treatment plant
equipment because the current water system was either contaminated or likely to be contaminated. 126 The EPA could now order PWSs
with uncovered finished water reservoirs to take similar remedial measures, by installing closed-storage tanks.
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What is the action today? EPA is proposing to further protect America's drinking water by requiring, for the first time, action to protect
ground water sources of public drinking water supplies from disease-causing viruses and bacteria, such as E. coli. The proposal will
protect 109 million Americans, and prevent over 115,000 cases of illness and as many as 10 deaths per year. This rule will require
identification of defects in water systems that could lead to contamination and identification of sources of drinking water that are at
risk of being contaminated. The rule requires monitoring for systems with sources at risk, and actions to remove or inactivate
contaminants, if found, to prevent them from reaching drinking water consumers. Top of page How is this rule related to recent
Clinton/Gore Administration drinking water announcements? Since most Americans drink from public water systems at some point,
whether in their home, at school, or at a restaurant, these three rules together will protect almost all Americans from waterborne
diseases. In December 1998, President Clinton announced a major rule to control Cryptosporidium in large drinking water systems
(those serving at least 10,000 people each). In March, 2000, Vice President Gore announced a new rule that extended those protections
to persons served by small water systems (those serving fewer than 10,000 people). Today's rule proposes the first ever requirements
that water systems which use ground water also protect against disease-causing microbial contaminants, including viruses and
bacteria. Top of page Why is EPA proposing this rule? EPA's Science Advisory Board concluded in 1990 that exposure to microbial
contaminants such as bacteria, viruses, and protozoa (e.g., Giardia lamblia and Cryptosporidium) was likely the greatest remaining
health risk management challenge for drinking water suppliers. Illness can result from exposure to microbial pathogens ranging from
mild to moderate cases lasting only a few days to more severe infections that can last several weeks and may result in death for those
with weakened immune systems Although ground water has historically been considered free of contamination, Center for Disease
Control data shows that 318 waterborne disease outbreaks associated with ground water systems occurred between 1971 and 1996.
Eighty-six percent of these outbreaks were associated with contaminated source waters, and half of those outbreaks occurred in
systems that were already using some kind of disinfection. This data indicated a need to strengthen monitoring, prevention,
inactivation and removal of contaminants from ground water systems. Top of page Does today's rule protect ground water systems
from Cryptosporidium and Giardia? No, because disease-causing microbes such as Cryptosporidium and Giardia are not found in
ground water. They only occur in surface water, and ground water under the direct influence of surface water, and are covered by the
two previous regulations announced by President Clinton and Vice President Gore. This proposed rule will protect against E. coli, a
microscopic bacteria found in animal wastes. Top of page What causes contamination of ground water? Viral and bacterial pathogens
are present in human and animal feces, which can, in turn, contaminate drinking water. Fecal contamination can reach ground water
sources, including drinking water wells, from failed septic systems, leaking sewer lines, and by passing through the soil and large
cracks in the ground. Fecal contamination from the surface may also get into a drinking water well along its casing or through cracks
if the well is not properly constructed, protected, or maintained. Fecal contamination may also enter the distribution system, such as
pipes.
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286
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Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
Electricity comes and goes at the flick of a switch. People get annoyed when the power goes out, blitzing the cable and
making them miss the latest episode of “The Simpsons.” Water is different — it is nearly sacred. In fact, a terrorist doesn’t
even have to actually contaminate water to affect a terrorist act.
“I just have to make you believe the water is contaminated,” Beering said. If the public suddenly lost confidence in the
integrity of the water system, he said, there would be a domino effect. A panic run on bottled water and alternative
water supplies.
Robert M. Anderson, senior counsel at the law firm of LeBouef, Lamb, Greene, & MacRae LLP; and Paul C. Freeman, Esq.,
an associate at LeBouef, Lamb, Greene, & MacRae, Jan/Feb 05 (Waste and Wastewater Products, Vol 5, No 1, http://www.wwn-
online.com/articles/50916/)[JWu]
Water is essential to human life, an important source of power, and an integral mode of transportation and commerce.
Unfortunately, whether it is a drinking water treatment facility protected only by a fence and padlocks, a dam and its pristine reservoir
located in a remote area, or a bustling port of call handling large amounts of international trade each day, water and waterborne
activities are susceptible to attack. Likewise, legal protections for water resources, particularly drinking water, and critical water-
based activities (i.e., maritime transportation and the generation of hydroelectric power) present unique challenges for the federal
government and affected private sector businesses. These challenges must be overcome, however, because the stakes for protecting
the nation's water resources are unquestionably high. Water's vital role in society and the magnitude of the consequences that
would flow from an attack on water unfortunately make it an attractive medium through which terrorists may seek to once again
strike at the American public. A brief examination of the security challenges facing the maritime industry provides a useful context
for assessing the magnitude of the task confronting drinking water providers.
Water security affects every American—a terrorist attack would devastate the country
Robert M. Anderson, senior counsel at the law firm of LeBouef, Lamb, Greene, & MacRae LLP; and Paul C. Freeman, Esq.,
an associate at LeBouef, Lamb, Greene, & MacRae, Jan/Feb 05 (Waste and Wastewater Products, Vol 5, No 1, http://www.wwn-
online.com/articles/50916/)[JWu]
Although smaller in size and generally less complex, drinking water facilities in the United States far outnumber America's ports
and, perhaps more importantly, serve as a direct conduit to the health of every American. According to the U.S. Environmental
Protection Agency (EPA), approximately 160,000 public water systems (serving at least 25 people or 15 service connections at least
60 days per year) provide drinking water to approximately 90 percent of all Americans.12 While most of these facilities are quite small,
an attack on even the most isolated of systems may accomplish a terrorist's goals. Consider the nationwide hysteria that flowed
from the targeted anthrax attacks perpetrated shortly after 9/11, and then imagine the serious, widespread and long-lasting damage
that would be wrought on our collective psyche and the public's confidence in the safety of our drinking water supplies across the
country if a small, isolated, or even unsuccessful attack were launched on a water system somewhere in the United States.
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A terrorist water attack would disrupt the economy and national power
Robert M. Anderson, senior counsel at the law firm of LeBouef, Lamb, Greene, & MacRae LLP; and Paul C. Freeman, Esq.,
an associate at LeBouef, Lamb, Greene, & MacRae, Jan/Feb 05 (Waste and Wastewater Products, Vol 5, No 1, http://www.wwn-
online.com/articles/50916/)[JWu]
Because of their locations in natural settings that are often open and remote, dams are accessible in ways that many experts believe
render them vulnerable to attack. Situated within a river complex, dams often may be reached by land, water, or air. Underwater
access also is possible. As a result, imposing effective barriers to access by land, water, and air, as well as monitoring for intruders, is a
complex and challenging task for dam owners and operators. A successful attack at a major hydropower facility, such as Hoover or
Grand Coulee dams, would have the devastating result terrorists seek: significant loss of human life, massive property
destruction and economic loss, long-term economic disruption of a critical part of the nation's infrastructure, and a serious
blow to national symbols of power and pride.
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
Water is the “quintessential target,” Beering said. It’s been a strategic objective in armed conflict throughout history. The Nazis
dumped raw sewage into reservoirs; dead animals were tossed into wells in Kosovo. And the FBI’s J. Edgar Hoover warned of the
potential for attacks on the nation’s water supply prior to the surprise attack on Pearl Harbor.
Electricity comes and goes at the flick of a switch. People get annoyed when the power goes out, blitzing the cable and making
them miss the latest episode of “The Simpsons.” Water is different — it is nearly sacred. In fact, a terrorist doesn’t even have to
actually contaminate water to affect a terrorist act.
288
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289
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290
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Environmental terrorism is even worse than normal terrorism—it devastates the environment and economy in
addition to loss of lives
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• One national high risk problem is terrorism. EPA plays a role in critical infrastructure protection as lead agency for drinking
water protection.
EPA also supports the FBI in counter-terrorism and terrorism response activities. It would be nice if EPA could receive funding
out of the homeland security function, but I do not know if that is possible.
• I am concerned that some programs, like the Criminal Enforcement program, are straining under the dual weights of
enforcing environmental crimes and supporting homeland security duties. Also, local drinking water agencies have received
federal funds to assess their vulnerabilities to terrorist attack, but a great need remains to implement physical protection
measures. We need to address these issues.
Rep. John D. Dingell, Chairman, House Committee on Energy and Commerce, February 4, 2008 ("Wynn blasts Bush EPA cuts"
http://energycommerce.house.gov/Press_110/110nr192.shtml)[JWu]
Wynn also noted that the President’s budget would shortchange the Leaking Underground Storage Tanks (LUST) Trust
Fund, which helps pay to clean up leaking underground storage tanks that pollute drinking water supplies. Congress
enacted legislation last year that provided $102.1 million for the LUST Trust Fund for Fiscal Year 2008. The President’s Fiscal
Year 2009 Budget would cut funding by $29.8 million and would provide only $72.3 million for the LUST Trust Fund.
“The Government Accountability Office has found that nationally we will need over $12 billion in public funds to clean up
leaking tanks and the EPA has confirmed that over 108,000 releases from leaking underground storage tanks have not
been addressed,” Wynn said. “Meanwhile, the President proposes further reducing funding for the LUST Trust Fund.”
Historically, sabotage to water and wastewater systems has not received much publicity as a viable threat. Safe and sustainable
drinking water has been taken for granted. Today, sabotage has to be considered not only as a viable threat, but a plausible one. It is
important that cities, counties, provinces, and private companies that own or operate water and wastewater systems consider what
weaknesses may exist throughout their systems, what measures should be taken to prevent future acts of sabotage, vandalism, or
terrorism, and be ready with a well-tested emergency response plan.
Two types of water system sabotage—vandalism and terrorism—need to be considered. Vandalism interrupts the supply of water and
reduces its quantity. Terrorism contaminates the water and reduces its quality.
Supply interruptions include the destruction of, or interference with, reservoir dams, water towers or storage facilities, pumping
stations, intakes, valves, treatment plants, the distribution system, or fire hydrants, denying the population drinking water or
firefighting protection. Supply interruptions can be caused by any number of acts, including physical destruction, interruption of the
supervisory control and data acquisition system, or acts that could reduce the water pressure in a system. Supply interruptions can also
occur as an indirect result of contamination. As drinking water is essential to human life, denying it for any period could cause panic
and disrupt society.
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PDD-62, issued by President Clinton on May 22, 1998, directs the establishment of an integrated program to increase U.S.
effectiveness in countering terrorist threats and to prepare to manage the consequences of attacks against U.S. citizens or
infrastructures. Lead agencies responsible for supporting the program, such as the EPA, must designate a Senior Program Coordinator
who is responsible for coordinating this effort within the U.S. government. This PDD reaffirms and complements the directives
contained in PDD 39. PDD 62, places specific requirements on EPA:
• support FEMA's consequence management activities involving hazardous materials and environmental concerns
• assist the Department of Defense in training state and local emergency responders
• train emergency emergency responders for hazardous materials and environmental incidents
• assist Department of Justice in providing personal protective equipment and detection and diagnostic instruments, on a
selective basis, to state and local law enforcement agencies.
PDD 62 also requires each agency to maintain a Continuity of Operations Plan as outlined in Executive Order 12656. This plan must
ensure the operation of essential agency functions following an attack that incapacitates headquarters facilities and key leadership.
Finally, the PDD requires EPA to support security operations with specialized units and crisis management and provide consequence
management for national special security events. These types of events include Presidential Inaugurations, State of the Union
Addresses, Presidential Summits, and the Olympics.
J.P. Suarez. (EPA's assistant administrator for the Office of Enforcement and Compliance Assurance). April 26, 2003.
U.S. Newswire. [JWu]
“Since September 11, 2001 our government has experienced an enormous increase in the need to protect its citizens from acts of
terrorism. Agencies across the government came together and established an effective, strong homeland security presence. EPA
responded immediately and continues to play a critical role in homeland protection. EPA’s strategic plan for homeland security was
held up as a model for other Agencies and Departments. Every EPA program and region has reallocated some of its resources to
address important and essential homeland security functions.
"EPA’s focus since September 11 has been to support our nation’s effort at combating domestic threats while at the same time ensuring
that enforcement of environmental crimes continues. Homeland security is a critical new aspect of EPA’s mission, and we have
dedicated resources to support this essential effort. At the same time we continue to achieve significant success in prosecuting
environmental crimes – in fact, EPA’s enforcement numbers in several categories are at an all time high.
'Some of EPA’s Criminal Investigations Division agents participate on the FBI’s Joint Terrorism Task Force and the Department of
Justice’s Anti-Terrorism Task Force. Participation on the task forces allows these EPA agents to respond to any domestic incident that
may involve a threat to the nation’s infrastructure, including drinking water supplies, chemical storage and manufacturing facilities,
illegal importation of dangerous or hazardous substances, or other incidents that may require the expertise of an environmental
enforcement agent. In addition to homeland security investigations, agents assigned to the Terrorism Task Force also carry traditional
environmental crime caseloads.
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A water terror attack will kill hundreds and cost billions for the economy
Robert D. Morris, MD, PhD, environmental epidemiologist and a leading researcher in the field of drinking water and health,
July 31, 2007. ("The Blue Death." Page 290)
One evening, while I was attending a meeting in Washington, D.C., I shared dinner with a pair of experts from two major water
utilities. In the course of the discussion, one of them swore me to secrecy, leaned across the table, and explained how one could
contaminate a major portion of an urban water supply with relative ease. On the off chance that diabolical minds have not figured
out the details, I will refrain from offering specifics on how a successful attack might be undertaken, but it will not require truckloads
of poison. If we are to stop men who take down skyscrapers with box cutters, we must learn to think like them. An attack with
the potential to kill hundreds, sicken thousands, and to cause millions if not billions of dollars in economic damage might
require nothing more sophisticated than a small group of men with bags of manure.
NEWTech, leading Israeli national water technology development program 05 (date based on newest date in article,
"Protecting water and preventing a new kind of threat"
http://www.israelnewtech.gov.il/?CategoryID=173&ArticleID=26&sng=1)[JWu]
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Water terrorism would devastate the economy and pose dangers to millions
NEWTech, leading Israeli national water technology development program 05 (date based on newest date in article,
"Protecting water and preventing a new kind of threat"
http://www.israelnewtech.gov.il/?CategoryID=173&ArticleID=26&sng=1)[JWu]
296
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H. Court Young, geologist, author, publisher, 2007, ("The Impact of a Water Supply Disruption in a Small Community"
http://www.understandingwaterandterrorism.com/Terrorism_Article4.htm)[JWu]
There are about 170,000 public water systems in the United States according to the Environmental Protection Agency
(EPA). They are classified as follows:
Very small water systems – 25 to 500 people served
Small water systems – 501 to 3,300 people served
Medium water systems – 3,301 to 10,000 people served
Large water systems – 10,001 to 100,000 people served
Very large water systems – 100,001 + people served
Approximately 45,000 of these water systems are classified as small or very small. These small water suppliers include towns,
small cities, water districts and municipalities. Typically, they are headed by a mayor, director, general manager, city manager
or executive manager. They may be managed by a board of directors or city council. Security is often provided by the local
police department or state patrol. In many cases there are fewer than 10 people involved in supplying water to the consumer.
Often, these people do not have any formal security or media relations training.
One of these small water supply systems, Walkerton, Ontario, Canada faced a crisis in May 2000. This system, supplying
5,000 people, was contaminated by an E. Coli:O157 and a Campylobacter jejuni epidemic. In less than a month, 2,300
people were sick and 7 people were dead.
The economic impact on this small community was staggering. The total cost of this tragedy was estimated to be at least
$64.5 million and if the cost of human suffering is factored in an estimated $155 million. Each household in the town spent
about $4,000 on average for system repairs, replacement, cleanup, decontamination and medical bills as a direct result of
the contamination. The entire water system was replaced or rebuilt. It cost the town of Walkerton more than $9 million to
repair the water supply infrastructure.
Additional economic costs included the following items. Real estate values dropped a total of $1.1 million. Business costs
for bottled water and disinfecting or replacing contaminated equipment was estimated at $70,000. Lost business revenues
from May 1, 2000 to April 30, 2001 were estimated at $2.7 million. The Government of Ontario spent more than $3.5 million
in legal fees and another $1.5 million to supply clean water to state institutions.
But the worst impact may well have been the psychological effect on the public. One of the long term impacts can be
seen in the following comment by a Walkerton resident.
“It could be years before anyone here turns on a tap without wondering if the water is safe.”
Walkerton was a small town where everyone knew everyone else. Many knew those who died or became seriously ill.
Friendships were severely tested and some were destroyed. Lifelong friendships were torn apart by the legal battles that
followed when blame was debated in both the media and the courthouse.
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Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
However, “a single terrorist, or even a small group of terrorists could quite easily cripple an entire city by simply
destroying equipment at the reservoir end of the pipeline, and even by poisoning the reservoir with concentrated toxins
right where the water enters the pipeline,” said James Atkinson, a counter-terrorism consultant and principle of the Gloucester,
Mass.-based Granite Island Group.
Luthy and others are pushing for more research into how bio-agents such as anthrax and smallpox handle being introduced into
the water system. And more research needs to be done on how to implement electronic data collection devices, says Jerry
Gilbert, a water consulting engineer in Orinda, Calif.
“There is a long range concern that we need to develop the kind of sensors and electronic alarms and monitors that would allow
you to [quickly] determine changes in water quality,” Gilbert said. Although all systems do testing of the water supply, those
tests are handled in labs and take time. Gilbert says the industry needs to take advantage of microchip advancements and get
more real-time testing sensors in place. “And not just with regard to terrorism,” he said, “but any other thing that might
adversely affect water quality.”
Gilbert’s right on point: This year close to one million Americans will get sick from something in their water; about 1,000 of
those ultimately result in fatalities, according the Center for Disease Control.
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Douglas Peters, former chief economist of the Toronto-Dominion Bank and was secretary of state (finance) in the federal Liberal
government from 1993-97. 7-19-08 http://www.thestar.com/comment/article/463418 [JWu]
On the government side, there is a clear need for fiscal stimulus. But conservatives in both the U.S. and Canada have been on
a rampage to cut taxes, reducing the their governments' fiscal capacity. Thus, as President George W. Bush confers with
his economic advisers, he faces the dramatic problem of an enormous deficit when the economic stimulus of greater spending
is needed. In Canada the Harper Conservatives, having cut the goods and services tax, face a similar problem but of a smaller
dimension.
How did this set of difficulties come about?
It appears that this was exactly what both the U.S. and Canadian conservative governments intended. The purpose of the tax
cuts was to make it more difficult for governments to raise spending or introduce new programs. While both the Bush
administration and the Harper government are victims of their conservative ideology, it is the people of Canada and the U.S.
who will suffer. They face a much more difficult year of slow growth or recession than would have been the case had taxes
remained higher and the fiscal capacity been available to improve economic conditions in both countries.
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SuperFind
Superfund is low priority in the EPA
Christopher S. Bond, Senator, 03/10/2004. EPA Budget for FY2005 Hearing.
http://epw.senate.gov/hearing_statements.cfm?id=218919 [JWu]
• I agree that we need more funds for the Superfund program. However, we must end this notion that we should clean up every
site immediately. Many of the sites ready for cleanup are protected and stable. They pose no health threat to their surrounding
area. We have higher risk environmental problems we must solve first.
Superfund is key to cleaning hazardous wastes and solving the worst public health threat
Jolted by the horror of New York's Love Canal and other revelations of chemical poisons seeping into America's earth and water,
Congress three years ago created a $1.6 billion "Superfund" for cleaning up hazardous wastes. Drawing on contributions from
chemical and oil companies, with costs to be recouped from violators, the measure was hailed as an important beginning in coping
with the worst public health threat of the 1980s. It gave the Environmental Protection Agency the money and authority to
purge the toxic dumps environmentalists called "ticking time bombs."
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2AC Front line - EPA
UCLA Journal of Environmental Policy and Law, 99 " The risks and the advantages of agency discretion: evidence from EPA's
Project XL." http://www.accessmylibrary.com/coms2/summary_0286-505292_ITM [JWu]
There is also a significant and growing discrepancy between the responsibilities assigned to EPA via statute and the resources
Congress provides the Agency to carry them out. Congress has charged EPA with the implementation of a complex set of
functions. To carry these out, the Agency must administer a collection of laws specifying how pollution is to be managed within
specific "media" or programs. The Agency's task is to design, implement and enforce an enormous number of regulations. This
requires substantial institutional capacity. Yet, EPA's institutional capacity is actually shrinking. EPA had 7000 employees and a
budget of $3.3 billion in 1971; at the time, twelve percent ($512 million) of this money was spent on program administration. The
remainder was used to fund state and local grants. By 1980, the Agency's employee base had increased to 12,000 and its budget
to $5 billion, $1.5 billion was spent on program administration. The 1989 budget totaled only $4.8 billion, with $1.6 billion set
aside for program administration--a drop in real terms of fifteen percent over the decade. Congress has never restored the
resources it cut.(8)
Jeremy Elton Jacquot, getting Ph.D. in Marine Environmental Biology, with an emphasis on environmental policy and sustainable
management, Treehugger.com Staff Writer, 2-08-08 (http://www.treehugger.com/files/2008/02/
bush_budget_cuts_environment.php)[JWu]
"President Bush again has cut the budget of the U.S. Environmental Protection Agency, this time by $330 million to a total of $7.14
billion. The cuts include over $270 million dollars from EPA programs that would clean up and restore lakes, rivers and streams.
Global climate change research comes in at $16 million. ... The Bush budget eliminates a $5 million EPA program to restore
the San Francisco Bay. It cuts air pollution programs, including over $31 million dollars for grants to states, and eliminates a $10
million dollar program that would help clean up the air in some of California’s most polluted communities. It eliminates funding for
a new national registry to track global warming pollution."
302
Econ Generic
DDI 2008
Serrano
2AC Front line - EPA
UCLA Journal of Environmental Policy and Law, 99 " The risks and the advantages of agency discretion: evidence from EPA's
Project XL." http://www.accessmylibrary.com/coms2/summary_0286-505292_ITM [JWu]
His strategy may well have been correct for its time. It established EPA in the public eye and encouraged the private sector to
internalize costs associated with environmental compliance. However, over the decades, Congress and EPA have come to rely
on enforcement as an end in itself. They stress enforcement numbers ("beans," in Agency parlance) when measuring the
Agency's success.
This emphasis on enforcement helps to explain EPA's difficulty in recognizing that the initial phase of America's
environmental policy has ended.(10) Indeed, EPA's continued reliance on traditional enforcement strategies is
inappropriate given environmental problems the Agency and the country now face. In the words of Malcolm K. Sparrow,
"[l]ining up industrial polluters for prosecution has limited tangible effect on the quality of the environment. There are too
many violators, too many laws to be enforced and not enough resources to get the job done."(11)
New challenges must be approached in a different way. Ideally, it would be best if the Agency could find a way to
encourage all private actors to adopt more environmentally sustainable development behaviors voluntarily. Since the costs of
each additional unit of environmental improvement are going up steadily, it also makes sense to carefully tailor pollution
control and prevention strategies to each situation. Those strategies that take account of the unique problems facing each
regulated actor are likely to be most effective. Collaboration, not confrontation, and a flexible approach to regulation that
emphasizes environmental performance rather than penalties and expensive litigation, should be the goal.
5. Alternative causalities to water-- crumbling plants and dilution overwhelm contamination effects
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
The darker angels of the water security issue are old, crumbling pipelines and treatment plants. The “reality is that many
components of our water systems are aging and need repairs, replacement, or upgrades, ” Luthy told Congress.
The Association of Metropolitan Water Agencies has asked Congress for $57 billion over a five year period targeted at drinking
water and wastewater infrastructure.
Experts agree that introducing a toxin into the raw water reservoir would have little impact owing to the dilution effect
several million gallons of water would have on any biohazard.
6. Water terrorism has low probability and has never killed anyone in the US
EPA Dec 2003, "Response Protocol Toolbox: Planning for and Responding to Drinking Water Contamination Threats and
Incidents" epa.gov/safewater/watersecurity /pubs/guide_response_module1.pdf [JWu]
While it is important to consider the range of possibilities associated with a particular threat,
assessments are typically based on the probability of a particular occurrence. Determining
probability is somewhat subjective, and is often based on intelligence and previous incidents.
There are historical accounts of intentional contamination of drinking water supplies with
biological or chemical contaminants, but most have been associated with wartime activities
(http://www.who.int/emc/pdfs/BIOWEAPONS_FULL_TEXT2.pdf). The few documented
accounts of intentional contamination of public water systems in the U.S. have not resulted in
any reported fatalities. The American Water Works Association Research Foundation
(AWWARF) is preparing a report on this subject (AWWARF, 2003). Based on these
accounts, it would appear that the probability of a successful contamination incident on a
drinking water system is relatively low. However, there has been a reported increase in the
interest of various terrorist groups in biological and chemical weapons. Furthermore, some
intelligence information indicates that terrorist organizations have considered water
infrastructure as a possible target. Thus, the potential for such an incident does exist
303
Econ Generic
DDI 2008
Serrano
2AC Front line - EPA
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
Here’s the brutal truth: The nation’s water infrastructure is impossible to fully secure. The sheer vastness of the system
with its “raw water” reservoirs and tens of thousands of miles of exposed aqueducts and pipeline with little or minimal
security make it logically and fiscally impossible to completely police. To simply put fences around the three raw water
reservoirs that the Indianapolis Water Company uses to feed that city’s water needs “would bankrupt the company,” says
Peter Beering, IWC’s deputy general counsel.
The threat isn’t new. Industry experts have been crying in the wilderness for years trying to get the fractured water
community to take the issue of terrorism more seriously. And in fact, the industry got a pre-September jolt of adrenalin that
raised as many eyebrows as it did awareness.
8. Even if EPA has enough resources, the White House will stop EPA efforts to decrease environmental regulation—terminally
no impact
The White House in December refused to accept the Environmental Protection Agency’s conclusion that greenhouse
gases are pollutants that must be controlled, telling agency officials that an e-mail message containing the document would
not be opened, senior E.P.A. officials said last week.
The document, which ended up in e-mail limbo, without official status, was the E.P.A.’s answer to a 2007 Supreme Court
ruling that required it to determine whether greenhouse gases represent a danger to health or the environment, the officials said.
This week, more than six months later, the E.P.A. is set to respond to that order by releasing a watered-down version of the
original proposal that offers no conclusion. Instead, the document reviews the legal and economic issues presented by
declaring greenhouse gases a pollutant.
Over the past five days, the officials said, the White House successfully put pressure on the E.P.A. to eliminate large
sections of the original analysis that supported regulation, including a finding that tough regulation of motor vehicle
emissions could produce $500 billion to $2 trillion in economic benefits over the next 32 years. The officials spoke on
condition of anonymity because they were not authorized to discuss the matter.
304
Econ Generic
DDI 2008
Serrano
EPA's just unveiled plan listing 104 unregulated drinking water contaminants it will research for possible future regulation
if warranted by risk levels appears to set an ambitious research agenda that the agency is unlikely to complete given its
tight budget limits, a drinking water industry source says. The agency Feb. 20 unveiled its draft Contaminant Candidate
List (CCL3), which the Safe Drinking Water Act requires EPA to develop to identify contaminants that may require future
regulation. Among the chemicals listed for the first time are several widely used industrial chemicals, including 1,4
Dioxane and perfluorooctanoic acid (PFOA).
But a drinking water source cautions of the draft CCL3, "the number may be a little bit high," saying that the amount
of contaminants on the list is "a lot more than EPA can support," in a research agenda. But the source also notes that this
is "the first time they've been . . . rigorous and systematic" in choosing the potentially harmful drinking water contaminants to
be on the list of potential contaminants. Nevertheless, the drinking water source says "the idea of developing a list that
fits into a realistic research agenda is important, and I don't think they do that with this list." In the draft list EPA
carries over 16 contaminants from CCL2, despite the fact that the agency has made only determinations on 11 of 51
on the previous list. EPA is scheduled to finalize those 11 determinations -- each not to regulate -- this summer. An EPA
source says that the change in carry-over of contaminants listed is due to the more rigorous process in creating the CCL3.
305
Econ Generic
DDI 2008
Serrano
Trade-offs now
Funding for lake restoration and pollution are being cut now
Jeremy Elton Jacquot, getting Ph.D. in Marine Environmental Biology, with an emphasis on environmental policy and sustainable
management, Treehugger.com Staff Writer, 2-08-08 (http://www.treehugger.com/files/2008/02/
bush_budget_cuts_environment.php)[JWu] "President Bush again has cut the budget of the U.S. Environmental Protection Agency,
this time by $330 million to a total of $7.14 billion. The cuts include over $270 million dollars from EPA programs that would clean
up and restore lakes, rivers and streams. Global climate change research comes in at $16 million. ... The Bush budget
eliminates a $5 million EPA program to restore the San Francisco Bay. It cuts air pollution programs, including over $31
million dollars for grants to states, and eliminates a $10 million dollar program that would help clean up the air in some of California’s
most polluted communities. It eliminates funding for a new national registry to track global warming pollution."
306
Econ Generic
DDI 2008
Serrano
NO LINK—TAXPAYERS
307
Econ Generic
DDI 2008
Serrano
NO LINK—TAXPAYERS
Environmental regulations causes increases in taxes
Michael J. Pompili, assistant commissioner for environmental health for Columbus, Ohio, January 1, 1995, The Rising Impact of
Environmental Mandates on Local Government, Regulation, The Cato Review of Business & Government,
(http://www.cato.org/pubs/regulation/reg18n1a.html)
As the number of federal mandates was increasing, significant changes in federal funding were also occurring. In
the early 1970s the federal government imposed environmental mandates on local communities and businesses, but it also
allocated significant financial resources to local communities to assist them in achieving compliance. For example, grants
were made to local communities to help with water and sewer projects. In the mid-1980s, with the ever-increasing
pressures on the federal government to balance its budget, grant programs for state and local environmental efforts were
reduced or eliminated. Federal funding for sewer and water infrastructure peaked between 1977 and 1980, and has
generally declined since. Furthermore, federal funding has been shifting from outright grants to loan programs that
are now administered through the state. The local government share of all of these loans has increased greatly. The
Environmental Protection Agency (EPA) dramatically emphasized this point when it documented that future
compliance expenditures would be substantial and the proposed federal funding allocated to achieve the desired
result would be minimal. Table 4 shows the EPA’s presentation of this information. The combined impact of increasing
federal requirements and decreasing federal support could be devastating to local communities. This "double
whammy" on the taxpayer was highlighted in a recent General Accounting Office report: "In recent years, the
responsibility for financing environmental projects has been shifting from federal to state and local governments.
EPA projects that by the year 2000 local government costs will increase from $19 billion a year to over $32 billion
(in 1986 dollars) in order to meet new federal standards for drinking water and wastewater treatment. Some small
communities of less than 2,500 people may find these new costs especially burdensome, in part because they are
less able to expand financial obligations." In effect, the federal government has been decreasing funding in the
environmental area, reallocating those resources to fulfill other objectives, and then imposing additional controls and
mandated costs on state and local governments. Since this shift has resulted in a shortage of funding in the
environmental area, these actions have forced state and local governments to raise taxes.
308
Econ Generic
DDI 2008
Serrano
NO LINK—TAXPAYERS
Despite the changing relationship among federal, state, and local governments, the local community continues to be
the main provider of environmental services. Regardless of funding, local governments are expected to deliver the
services in a timely and efficient manner and still stay in compliance with all existing environmental laws and regulations.
Because of these requirements, it is important for local communities to be able to determine their actual costs of
compliance. The city of Columbus was one of the first cities in the United States to perform a cumulative study of
the costs of compliance with these new environmental mandates. Columbus discovered that it would cost over $1
billion to comply with environmental mandates enacted as of January 1991. This 10-year cost total amounted to an
increase per household of $856 per year by the year 2000. Because of these increases there were fewer funds
available for other city services. Also, city leaders had fewer options, and, therefore, less freedom to make
budgeting decisions. Other cities throughout the country have performed their own cost studies, generally utilizing
the Columbus format. Their cost estimates were different, but in all cases the costs were significant or, in some
cases, even staggering, as Table 5 illustrates.
309
Econ Generic
DDI 2008
Serrano
NO LINK—STATES
Normal means is states enforce regulations.
US EPA 7/1/08 (Last Updated) “Introduction to Enforcement”
http://yosemite.epa.gov/r10/enforce.NSF/Our+Office/Introduction+to+Enforcement [ev]
How do EPA and the State Agencies work together to enforce environmental laws? Once a law is passed by Congress,
EPA drafts regulations to indicate what actions will be required to comply with it. To ensure consistency, EPA also
develops and uses policies and guidance to interpret and implement the regulations. Many environmental laws allow EPA
to authorize state agencies to conduct enforcement activities. EPA works with these agencies to help them develop
programs that meet certain criteria that are established in the regulations under a particular law. Once a state program
meets the criteria, EPA can approve that program. Upon approval, the state has the primary role for implementing the
environmental program. In certain instances, however, EPA may become involved in enforcement at a facility even under
an state authorized program.
Earlier we pointed out that these EPA regulations are “un-funded mandates.” The feds are relying on the already cash-
strapped states to actually enforce them. This means that laws will have to be written into the vehicle codes defining Kit
Bikes and Exempt Custom Motorcycles. Enforcement Officer positions will have to be created to patrol independent
motorcycle shops, and ultimately the states will rebel. They will have to because their budgets are already strained to the
limits. The hallmark of government is over confidence in its ability to accomplish its aims. Gridlock is what we can expect
in respect to these regulations. Some states, particularly California, will continue to selectively pursue targets while
ignoring the vast majority. The motorcycle aftermarket will continue to flourish, customers will continue to want to
customize their bikes and keep buying your parts and services.
The philosophy that has guided the UST program since its inception is that States have the primary responsibility for
implementation and enforcement of UST regulations (except in Indian Country). EPA therefore has devoted a major share
of its UST resources to supporting and helping strengthen State programs and will continue doing so. EPA expects States
to take the lead in securing compliance with the 1998 UST requirements. EPA recognizes that States can use various
enforcement activities to achieve compliance. These enforcement activities can include filing administrative or judicial
actions or immediately stopping operation of a non-complying tank (e.g., by using their "red tag" authority). Some States
do not have statutory authority to assess and collect penalties administratively and must initiate a judicial action if
penalties are to be assessed. While the judicial process may be time-consuming, States should use their enforcement
authority to demonstrate to UST owners and operators that they cannot ignore UST requirements with impunity.
310
Econ Generic
DDI 2008
Serrano
NO LINK—FAILURES.
No enforcement cost—EPA either delegates responsibilities to the states or fails to act at all.
GoVeg.com No Date Given “The EPA: Selling Out the Environment” http://www.goveg.com/government_epa.asp
The environmental laws that are already on the books are largely toothless, and to make matters worse, the Environmental
Protection Agency (EPA) often fails to enforce the laws or leaves enforcement up to the states. Like all government
agencies, the EPA is increasingly staffed with people who have close ties to the factory-farm industry or intend to get
industry jobs after they leave the public sector. In an expression of gratitude to all its factory-farm industry donors, the
Bush administration has also put pressure on EPA officials not to fully enforce environmental laws and to create new laws
that benefit the farmed-animal industry. Lack of Enforcement Rather than taking action against factory farms that are
polluting the environment, the EPA has a hands-off policy that has put the polluters in charge of monitoring and
controlling pollution. Former EPA attorney Michele Merkel, who currently works with the Washington, D.C.-based
Environmental Integrity Project, told reporters that the agency "hasn't initiated one investigation [into factory-farm
pollution] in four years. They're not doing anything."46 Enforcement of federal environmental laws is largely left up to the
states, but many states fail to enforce these laws because local governments are already overburdened and don’t have the
time, money, and willingness to crack down on factory farmers who often have a lot of sway in local politics. Only half of
states claim to require that large factory farms comply with the EPA’s air-quality standards, and fewer than 10 states ever
bother to enforce EPA regulations on toxic gases emitted from factory farms.47 Sierra Club attorney Barclay Rogers
explains that since neither the EPA nor the states are doing their part to enforce the law, "there are essentially no pollution
controls on these [factory-farming] operations whatsoever. The environment is being wrecked by these operations."48
311
Econ Generic
DDI 2008
Serrano
EPA implements the Clean Air and Global Climate Change goal through national and regional programs designed to
provide healthier outdoor and indoor air for all Americans, protect the stratospheric ozone layer, minimize the risks from
radiation releases, reduce greenhouse gas intensity, and enhance science and research. In implementing the goal, EPA
carries out its responsibilities through programs that include several common elements: setting risk-based priorities;
facilitating regulatory reform and market-based approaches; partnering with state, Tribal, and local governments, non-
governmental organizations, and industry; promoting energy efficiency; and using sound science.
Climate Protection For more than a decade, businesses and other organizations have partnered with EPA through
voluntary climate protection programs to pursue common sense approaches to reducing greenhouse gas emissions and
meeting the President’s greenhouse gas intensity goal. Voluntary programs such as Energy Star and SmartWay Transport
have increased the use of energy-efficient products and practices and reduced emissions of carbon dioxide as well as
methane and other greenhouse gases with very high global warming potentials. These partnership programs spur
investment in advanced energy technologies and the purchase of energy-efficient products and create emissions reduction
benefits that accrue over the lifetime of the investment or product. In 2008, EPA will invest $4.4 million in the Methane to
Markets by assessing the feasibility of methane recovery and use projects at landfills, coal mines, and natural gas and oil
facilities and by identifying and addressing institutional, legal, regulatory and other barriers to project development in
partner countries. In addition EPA plans to invest $5 million to support the Asia-Pacific Partnership programs. In FY 2008
this partnership between the United States Australia, China, India, Japan, and South Korea will focus on developing
country-specific strategies to improve energy security and reduce pollution. EPA also will work with the Asia-Pacific
region to develop and deploy new and emerging technologies and tailor programs, such as methane capture and use, to
meet the specific conditions of each area. Both the Methane to Markets program and Asia Pacific Partnerships will
coordinate with other agencies to achieve the goals in these programs.
312
Econ Generic
DDI 2008
Serrano
EPA=FAIL
EPA’s authority will only continue to weaken as the Bush administration leaves.
National Journal 4/11/08 “Vanishing Act” http://www.nationaljournal.com/njcover.htm [ev]
But the job of EPA administrator has become much less pleasant since the Democrats won control of Congress and began
zeroing in on EPA's actions and on Johnson's relationship with the White House. That scrutiny is almost certain to
intensify as the Bush administration attempts to deepen its imprint on environmental policy before leaving office in
January. In the coming months, EPA is expected to issue some of the most controversial regulations of the Bush era -- on
global warming, pollution from "factory" farms, emissions from coal-fired power plants, and industrial emissions of lead.
Legal experts say that even more than under Bush's two previous administrators, Christine Todd Whitman and Mike
Leavitt, Johnson's EPA is regularly pushed around by politically powerful advisers at the White House and in other
departments. "There's a sense that the agency has not stood up for itself and has been run over by other interests in the
executive branch -- and that it's happened under Steve Johnson's stewardship," said Richard Lazarus, an environmental
law professor at Georgetown. "He has not been a strong administrator, a strong voice in the administration," Lazarus
continued. "In case after case, to the extent that the EPA career and science people have sought something, the White
House has repeatedly trumped his judgment more than has happened in the past." Critics acknowledge that ever since
President Nixon created the supposedly independent agency in 1970, every EPA administrator has faced conflicts between
what the agency's experts recommend and what the White House demands. "But it seems to me that that tension is now at
an acute level," said Jonathan Cannon, director of the University of Virginia Law School's environmental and land-use
program. "It's causing extreme friction within the agency and institutional damage. It's demoralizing the legal staff, and
it's further separating staff from the political leadership at the agency." Cannon served at EPA during the Reagan, George
H.W. Bush, and Clinton administrations.
313
Econ Generic
DDI 2008
Serrano
NO AUTHORITY
In amending the SDWA, Congress did not explicitly authorize the EPA to take preventative measures to protect CWSs
from terrorism. The new sections of the SDWA (sections 1433, 1434, and 1435) do little to ensure that CWS
vulnerabilities actually are addressed once they are brought to the EPA's attention. The new language of section 1431,
the SDWA's emergency provision, remains ambiguous and conflicted, while the preexisting enforcement mechanisms in
the SDWA cannot proactively solve for the threat of terrorism.
314
Econ Generic
DDI 2008
Serrano
Pollution Answers
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
The darker angels of the water security issue are old, crumbling pipelines and treatment plants. The “reality is that many
components of our water systems are aging and need repairs, replacement, or upgrades, ” Luthy told Congress.
The Association of Metropolitan Water Agencies has asked Congress for $57 billion over a five year period targeted at drinking
water and wastewater infrastructure.
Experts agree that introducing a toxin into the raw water reservoir would have little impact owing to the dilution effect
several million gallons of water would have on any biohazard.
315
Econ Generic
DDI 2008
Serrano
EPA Dec 2003, "Response Protocol Toolbox: Planning for and Responding to Drinking Water Contamination Threats and
Incidents" epa.gov/safewater/watersecurity /pubs/guide_response_module1.pdf [JWu]
While it is important to consider the range of possibilities associated with a particular threat,
assessments are typically based on the probability of a particular occurrence. Determining
probability is somewhat subjective, and is often based on intelligence and previous incidents.
There are historical accounts of intentional contamination of drinking water supplies with
biological or chemical contaminants, but most have been associated with wartime activities
(http://www.who.int/emc/pdfs/BIOWEAPONS_FULL_TEXT2.pdf). The few documented
accounts of intentional contamination of public water systems in the U.S. have not resulted in
any reported fatalities. The American Water Works Association Research Foundation
(AWWARF) is preparing a report on this subject (AWWARF, 2003). Based on these
accounts, it would appear that the probability of a successful contamination incident on a
drinking water system is relatively low. However, there has been a reported increase in the
interest of various terrorist groups in biological and chemical weapons. Furthermore, some
intelligence information indicates that terrorist organizations have considered water
infrastructure as a possible target. Thus, the potential for such an incident does exist.
316
Econ Generic
DDI 2008
Serrano
Voluntary compliance is the ideal, but what happens when companies just refuse to comply? Both the general public and
regulated industries understand that laws that are not enforced will eventually be ignored. EPA Administrator Mike Leavitt has
said that, “Without consistent and smart enforcement, an environmental standard becomes an empty vessel.”
Teddy Roosevelt, perhaps our greatest environmental president, understood that, “No man is above the law…compliance
with the law is demanded as a right, not asked as a favor.” William Reilly, who headed EPA under the first Bush Administration, said,
“Enforcement of the environmental laws is at the very heart of the integrity…of our regulatory programs.” And in his inaugural speech
in January this year, Mike Leavitt promised EPA employees that, “[A]nyone who evades the law should feel the full weight of the
law until compliance is met.”
But a 75% decline in lawsuits against violators who refuse to settle speaks louder than words. EPA’s record suggests
that the “full weight of the law” has gotten a lot lighter over the past three years.
317
Econ Generic
DDI 2008
Serrano
318
Econ Generic
DDI 2008
Serrano
Brock Meeks, award-winning journalist, chief Washington correspondent for MSNBC, Oct 23 03, "U.S water supply vulnerable",
http://www.msnbc.msn.com/id/3340643/ [JWu]
Here’s the brutal truth: The nation’s water infrastructure is impossible to fully secure. The sheer vastness of the system
with its “raw water” reservoirs and tens of thousands of miles of exposed aqueducts and pipeline with little or minimal
security make it logically and fiscally impossible to completely police. To simply put fences around the three raw water
reservoirs that the Indianapolis Water Company uses to feed that city’s water needs “would bankrupt the company,” says
Peter Beering, IWC’s deputy general counsel.
The threat isn’t new. Industry experts have been crying in the wilderness for years trying to get the fractured water
community to take the issue of terrorism more seriously. And in fact, the industry got a pre-September jolt of adrenalin that
raised as many eyebrows as it did awareness.
319
Econ Generic
DDI 2008
Serrano
Eric Schaeffer, ex-director of EPA's Office of Regulatory Enforcement, director of the Environmental Integrity Project at
the Rockefeller Family Fund, July/August 2002 "Clearing the air", washingtonmonthly.com/features
/2001/0207.schaeffer.html [JWu]
DUMP IT ON THE STATES. According to Bush doctrine, what little environmental enforcement is necessary should be left to
states. In theory, states issue most permits for air and water pollution and waste management because they have been shown capable
of running such programs as required by federal law. In practice, EPA's records are so incomplete that it has little clue how well
most states perform. Some, like New York, driven by Attorney General Eliot Spitzer, have outstanding enforcement programs. But
periodic reviews by the General Accounting Office and the Inspector General repeatedly expose systematic failures to issue
permits, track compliance, find violations, and prosecute them effectively. In addition to lacking resources, many states,
especially in the South and West, are hostile to the very idea that most environmental laws should be enforced. State officials see
red when EPA steps in to take enforcement action (allowed by federal law) against one of "their" businesses. Some of this is
jurisdictional--aren't the local cops on TV always complaining about the FBI? But the constant and petty turf battles with state
political managers were one of my most dispiriting experiences. On several occasions, state agencies, informed of an EPA
investigation, rushed to cut a sweetheart deal with the target company to obviate the federal case. Once, over drinks, a state
enforcement manager confessed to me that his governor had instructed him to bash the federal EPA, no matter what it did. This has
always been a problem, but Clinton officials were less likely to pretend that states could do everything.
This devolution to state enforcement also serves the administration's corporate sponsors, since states are consistently more
cooperative and lenient than the federal EPA. It's no small irony that Administrator Whitman, when she was governor of New
Jersey, eliminated the state environmental prosecutor and made deep cuts in New Jersey's enforcement budget.
320
Econ Generic
DDI 2008
Serrano
***Econ Impacts
321
Econ Generic
DDI 2008
Serrano
US ECON HIGH
Economy may be low now, but is projected to grow
Steven R. Weisman, New York Times Staff Writer, 07/16/2008 “A glimmer of hope for the economy?”
(http://www.contracostatimes.com/financialmarkets/ci_9895825?nclick_check=1)
"The economy has continued to expand, but at a subdued pace," Bernanke said at another point. In one rare note of optimism, he
revised upward the Fed's growth estimate for the year and added that consumer spending had somewhat exceeded expectations. The
Fed chief spent the early morning testifying alone, as part of his twice-per-year appearances before Congress, and then joined Treasury
Secretary Henry Paulson and Christopher Cox, chairman of the Securities and Exchange Commission. Sitting with them, he endorsed
Paulson's plan, unveiled Sunday, to seek legislation to give the federal government temporary power to help Fannie and Freddie.
Bernanke offered no timetable for improved economic performance, declaring that while the risks to the overall economy were still
"skewed to the downside," inflation "seems likely to move temporarily higher in the near term." The Fed, he said, needed to guard
against higher prices spreading through the economy. Despite pictures of lines snaking around branches of IndyMac Bank and a
report from the chairwoman of the Federal Deposit Insurance Corp. that more banks were expected to run into trouble, Bernanke said
he did not think there was a significant danger to the consumer and commercial banking sector, most of which he said remained
profitable. "Of course, all banks are being challenged by credit conditions now," the Fed chief said in response to a question from Sen.
Richard Shelby, R-Ala., on the banking panel. "The good news is that the banking system did come into this episode extremely well-
capitalized, extremely profitable." But concerns about the consumer banking system succumbing to the ills of the credit crisis clearly
rattled official Washington, as Bush's citation of the federal government's insurance of bank deposits made clear. "The bottom line is
this: We're going through a tough time," Bush said. "But our economy's continued growing, consumers are spending, businesses
are investing, exports continue increasing and American productivity remains strong." The main reasons for Bernanke's sober
assessment, he told the senators, were rising commodity prices, especially energy, and continued weakness in the housing sector. He
suggested that housing prices might turn around next year, but that high energy prices were likely to remain because of demand
outstripping supply. Overall, he suggested in his initial comments, economic growth "is projected to pick up gradually over the
next two years."
322
Econ Generic
DDI 2008
Serrano
US ECON HIGH
Economy is dead now, but is increasing and even more in 2009
Jerome Idaszak, Associate Editor, The Kiplinger Letter, July 16, 2008, “No Fed Rate Hikes Until 2009, When Economy Improves”
(http://www.kiplinger.com/businessresource/forecast/archive/No_Fed_Rate_Hike_Until_2009_080715.html)
The Federal Reserve is postponing an inflation fighting hike in short-term interest rates until economic growth picks up, which
likely won’t happen until 2009. Despite seven rate cuts totaling 3.25 percentage points since last September, mortgage rates are
higher and financial markets remain fragile. The latest scare involves the future of virtually insolvent Fannie Mae and Freddie Mac,
which hold or back nearly half of the $11 trillion worth of outstanding mortgages in the U.S. The jump in consumer prices in May
isn't a surprise to the Fed whose chairman, Ben Bernanke, told the Senate Banking Committee Tuesday that inflation pressures would
"intensify" and that "inflation seems likely to move temporarily higher in the near term." But the Fed is counting on the surge to fade
later this year, though it will be watching closely to see whether a growing number of businesses are able to raise prices. The more
likely scenario is that with consumers retreating, business sales and profits will suffer. In fact, the Fed is counting on growth being
weak enough the rest of this year that holding off on a rate hike won’t be a mistake. But most economists are expecting at least a
couple more months of nasty readings like June. The Labor Department said the Consumer Price Index (CPI) rose 1.1%, with two-
thirds of that coming from higher energy prices. Bernanke said that the Fed had expected a bump in consumer spending from the
government stimulus to be spread evenly over the second, third and fourth quarters. Instead, most taxpayers appear to have spent their
checks within days or weeks of receiving them. The last of the rebate checks will be delivered in July and consumer spending without
that added stimulus will be flat to slightly negative for the rest of the year. As part of the Bernanke testimony to Congress, the Fed
updated its economic outlook and now sees GDP up between 1% to 1.6% this year and 2% to 2.8% in 2009. Thanks to the
infusion of the rebate checks, we see an increase of about 1.5% in GDP this year. Without a similar stimulus next year, GDP
likely will increase about 1.5%.
Economy is doing fine, organizations prove
Huffington Post, The internet newspaper, July 17, 2008, “getting it backwards” (http://www.huffingtonpost.com/ gerald-
bracey/getting-it-backwards_b_113260.html)
Those who dispense anxiety about America's schools have got it all backwards. Bill Gates, Roy Romer, Bob Wise, Bill Bennett
and many others look at the results of international test-score studies and make dire predictions about the future of the U. S.
economy. Instead, they should brag about the U. S. economy and impugn the quality and validity of the international test-score
comparisons. British economist S. J. Prais put it this way: "That the U. S., the world's top economic performing country, was
found to have schooling attainments that are only middling casts fundamental doubts about the value and approach of these
[international] assessments." Yes, that's the way the causality should go. As George Washington University's Iris Rotberg recently
observed, "The fact is that international test-score comparisons tell us very little about the quality of education in any country." The
Institute for Management Development (IMD) and the World Economic Forum (WEF), both Swiss organizations, love our
economy. The WEF usually ranks the U. S. first in global competitiveness, never below second, among 131 nations; in the IMD
rankings, the U. S. replaced Japan as #1,in 1994 and has enjoyed that position ever since.
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Economy is steadily rising, new policies prove
George W. Bush, President of the United States, July 15, 2008, “PRESS CONFERENCE BY THE PRESIDENT
James S. Brady Press Briefing Room “ (http://latimesblogs.latimes.com/presidentbush/2008/07/appearing-relax.html)
THE PRESIDENT: Good morning. It's been a difficult time for many American families who are coping with declining housing
values and high gasoline prices. This week my administration took steps to help address both these challenges. To help address
challenges in the housing and financial markets, we announced temporary steps to help stabilize them and increase confidence
in Fannie Mae and Freddie Mac. These two enterprises play a central role in our housing finance system, so Treasury Paulson
has worked with the Federal Reserve Chairman Bernanke so that the companies and the government regulators -- put the
companies and the government regulators on a plan to strengthen these enterprises. We must ensure they can continue providing
access to mortgage credit during this time of financial stress. I appreciate the positive reaction this plan has received from many
members of Congress. I urge members to move quickly to enact the plan in its entirety, along with the good oversight legislation that
we have recommended for both Fannie Mae and Freddie Mac. This is a part of a -- should be part of the housing package that is
moving its way through the Congress. And I hope they move quickly. The newly proposed authorities will be temporary and used
only if needed. And as we work to maintain the health of Fannie Mae and Freddie Mac, we'll work to ensure that they remain
shareholder-owned companies. To help address the pressure on gasoline prices my administration took action this week to
clear the way for offshore exploration on the Outer Continental Shelf. It's what's called OCS. Congress has restricted access to
key parts of the OCS since the early 1980s; I've called on Congress to remove the ban. There was also an executive prohibition on
exploration, offshore exploration. So yesterday, I issued a memorandum to lift this executive prohibition. With this action, the
executive branch's restrictions have been removed, and this means that the only thing standing between the American people and these
vast oil resources is action from the U.S. Congress. Bringing OCS resources online is going to take time, which means that the need
for congressional action is urgent. The sooner Congress lifts the ban, the sooner we can get these resources from the ocean floor to
refineries, to the gas pump. Democratic leaders have been delaying action on offshore exploration and now they have an
opportunity to show that they finally heard the frustrations of the American people. They should match the action I have taken, repeal
the congressional ban and pass legislation to facilitate responsible offshore exploration. Congress needs also to pass bills to fund
our government in a fiscally responsible way. I was disappointed to learn the Democratic leaders in the House postponed committee
consideration of the defense appropriations bill, and they did so yesterday. They failed to get a single one of the 12 annual
appropriations bills to my desk. In fact, this is the latest that both the House and the Senate have failed to pass any of their annual
spending bills in more than two decades. There are just 26 legislative days left before the end of the fiscal year. This means that
to get their fundamental job done, Congress would have to pass a spending bill nearly every other day. This is not a record to be proud
of, and I think the American people deserve better. Our citizens are rightly concerned about the difficulties in the housing markets
and high gasoline prices and the failure of the Democratic Congress to address these and other pressing issues. Yet despite the
challenges we face, our economy has demonstrated remarkable resilience. While the unemployment rate has risen, it remains at
5.5 percent, which is still low by historical standards. And the economy continued to grow in the first quarter of this year. The growth
is slower than we would have liked, but it was growth nonetheless. We saw the signs of a slowdown early and enacted a
bipartisan economic stimulus package. We've now delivered more than $91 billion in tax relief to more than 112 million American
households this year. It's going to take some time before we feel the full benefit of the stimulus package, but the early signs are
encouraging. Retails sales were up in May and June, and should contribute, and will contribute, to economic growth. In the
months ahead we expect more Americans to take advantage of these stimulus payments and inject new energy into our
economy. The bottom line is this: We're going through a tough time, but our economy has continued growing, consumers
are spending, businesses are investing, exports continue increasing, and American productivity remains strong. We can have
confidence in the long-term foundation of our economy, and I believe we will come through this challenge stronger than ever
before.
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A2_economy resilient
Government will refuse to help country, too much pork barreling and
corruption
Dr. James Dobson, Ph.D. Founder and Chairman of Focus on the Family, April 29, 2008 “The Asteroid That is Our Economy That
is to Come” (http://undcr.com/?p=217)
By 2019, Medicare becomes completely insolvent. And by 2041, Social Security runs dry. Great. By most estimates, this is a
$53 trillion asteroid. Now, you find one person–if you can find them, I’ll pay you–that’s credible on either side of the aisle
that disputes the size of this threat or how quickly it’s coming. In fact, most would say the dates and the figures I just gave you
are conservative. So, why is it no one’s doing anything about it? If there were a real asteroid, do you think we’d allow our
leaders to keep passing the next buck to the next administration until we could actually see the flying rock in the sky? … We’re
not only letting [our leaders] get away with that, we’re letting them do something worse. We’re letting them actually go
out into space, and they’re [asking] ‘I wonder if we could make the asteroid bigger?’ I mean, they’re putting
prescription drugs on. We’ve got billions in bailouts and rebate checks … I’m sorry, this is criminal negligence. I don’t
know who people think are going to swoop in and save us from this disaster … I’ve got news for you, it’s not going to be
Congress … The president is not going to do it. And believe me, Bruce Willis and Tommy Lee Jones, are going to be a
little too old. They’ll be on that non-existent Social Security system by then. Like always, we have to save ourselves. And
we have to start right now… ” Glenn Beck is absolutely right. Our political leaders are spending us into oblivion, and guess
what? They plan to raise our taxes exponentially so they can waste even more. One of my personal heroes, Winston
Churchill, once said that “for a nation to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up
by the handle.”1 He was, of course, talking about the economic situation in Great Britain many decades ago. But his words
have striking relevance to the United States today and to the scenario described by Glenn Beck on CNN. If you’re like most
Americans, you filed your income taxes this month. And as you realized just how much of your hard-earned money will
go to support the bloated bureaucracy and to an ever growing catalog of entitlements, you may have felt as helpless as a
man in a bucket trying to lift himself up–or a scientist watching an asteroid hurtling towards earth while the
government leaders did nothing to prepare.
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General
Economic Collapse Causes War
Mead, 1998 [Walter Russell Mead, Senior Fellow for U.S. Foreign Policy at the Council on Foreign Relations, The Los Angeles
Times, August 23, 1998] http://global.factiva.com/ha/default.aspx
Forget suicide car bombers and Afghan fanatics. It's the financial markets, not the terrorist training camps that pose the biggest
immediate threat to world peace. How can this be? Think about the mother of all global meltdowns: the Great Depression that
started in 1929. U.S. stocks began to collapse in October, staged a rally, then the market headed south big time. At the bottom,
the Dow Jones industrial average had lost 90 percent of its value. Wages plummeted, thousands of banks and brokerages went
bankrupt, millions of people lost their jobs. There were similar horror stories worldwide. But the biggest impact of the
Depression on the United States -- and on world history -- wasn't money. It was blood: World War II, to be exact. The
Depression brought Adolf Hitler to power in Germany, undermined the ability of moderates to oppose Joseph Stalin's power in
Russia, and convinced the Japanese military that the country had no choice but to build an Asian empire, even if that meant war
with the United States and Britain. That's the thing about depressions. They aren't just bad for your 401(k). Let the world
economy crash far enough, and the rules change. We stop playing "The Price Is Right" and start up a new round of "Saving
Private Ryan."
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General
Economic Collapse Leads to War
Mead 1998, "rule 1: don't panic. Rule 2 : panic first", Esquire, October [Walter Russell Mead, Senior Fellow for U.S. Foreign
Policy at the Council on Foreign Relations]
The behavior of economic storms is as hard to predict as the course of a hurricane. Still, this storm already has a track record,
and it's pretty damned chilling. If, God forbid, it reaches the United States, watch out. In a blow like this, stock prices could
easily fall by two thirds--that's 6,000 points on the Dow--and it could take stocks a decade or more to recover. Many investors
could be destroyed; mass liquidation of mutual funds in a panic could wipe out some funds entirely. The carnage among
"growth" funds and such high-flying sectors as Internet and technology companies would be appalling. In a real meltdown, the
damage wouldn't be limited to the financial markets. Housing prices would plummet, leaving millions of highly leveraged
home and apartment owners sitting on mortgages that are worth far more than their homes. Millions of people would lose their
jobs, and tens of millions more would watch their wages drop as employers frantically tried to cut back their payrolls. Many
cities would face bankruptcy as their tax revenues collapsed. All these things and more have already happened in many
countries around the world. Thailand, Indonesia, Malaysia, South Korea, Japan, Vietnam, Russia, South Africa--stock markets
in these countries have fallen by as much as 90 percent, unemployment rates are exploding, and countless people face the loss
of their businesses, jobs, and homes. Even starvation. Short or a massive asteroid strike from outer space, no natural disaster
could destroy this much wealth or plunge this many people into misery And more than a year after the crisis began, not one
country where it has struck shows any signs of recovery. With Japan, the world's second-largest economy; and Russia, its
second-largest nuclear power, firmly in its grip, the economic crisis now sweeping the planet may be the most important
event--and the most dangerous--since the Second World War. This isn't just an economic meltdown in a few emerging markets.
It's a full-fledged crisis of the international economic system, one that could plunge the entire world into a major depression.
More than that, it could challenge the strength of the international political system and test the leadership of the country that
widely and imprudently bills itself as "the only global superpower." Well, the only global superpower has recently made some
very stupid mistakes. We put our confidence in two basic ideas that turned out to be wrong. The first is that rapid deregulation
of the international financial system would promote growth without creating dangerous financial crises.
The U.S. is willing to use its military in order to protect economic interests
DuBoff, 2003 (Richard B. professor of economics at Bryn Mawr College, "U.S. Hegemony: Continuing Decline, Enduring
Danger," December, http://www.monthlyreview.org/1203duboff.htm)
Can America’s military supremacy be used to rebuild economic hegemony? Can it serve the interests of global capital across the
world? For over fifty years the American military establishment has been a source of support for multinational capital, and for
alliances whose logic is to preserve an open trade and investment system throughout the world. The U.S. military presence still
protects economic interests, notably in Saudi Arabia and other oil satrapies, and it may now allow the United States to control
Iraq’s oil fields, but the extent and duration of that control, and whether it will increase the leverage of the United States over supplies
and prices in the world’s oil markets, remain highly problematic. Pax Americana has always been a mixed blessing for U.S. allies:
it has been maintained partly by military power, undercutting efforts by U.S. allies in Europe and Japan to forge independent
foreign policies. With the demise of the Soviet Union, the United States became “the only superpower still standing” and
quickly set about using the new configuration of power in the world to reassert and expand its dominion over all comers. In
1990–1991 the United States cobbled together a coalition to wage the first Gulf War (“By God, we’ve kicked the Vietnam syndrome
once and for all,” exclaimed President George Bush the day the war ended), but would not pay for it and complained when its allies
started to renege on pledges of $37 billion. At the same time the United States was searching for ways to keep the North Atlantic
Treaty Organization (NATO) alliance alive, even though the official rationale for its founding in 1949—the Soviet Union—had
disappeared. According to a 1992 Pentagon Defense Planning document, “It is of fundamental importance to preserve NATO as the
primary instrument of Western defense and security, as well as the channel for U.S. influence and participation in European security
affairs [and] we must seek to prevent the emergence of Europe-only security arrangements....[W]e must maintain the mechanisms for
deterring potential competitors from even aspiring to a larger regional or global role.”
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US K World Econ
The Collapse of the U.S. Economy Causes the Collapse of the World Economy
Chris H. Lewis, growth skeptic, 1998 [The Coming Age of Scarcity, p.56]
A global recession will make the 1929 depression in the US look like a sari-sari store closing down. Global recession will lay off
millions across the planet, and trigger a stoppage of production in all types of industries. Industry-based nations with little or no
agrarian economy, such as Singapore, will be the first to feel the pinch. Moving out of recession takes time and while the crisis
continues, despair will negate further efforts towards growth and induce more crimes and war. In other words, a protracted recession
will make it harder to get out of it and may cause a depression. A global depression can kill more people at a shorter time than a
protracted regional war. The IMF-World Bank bailout of beleaguered Asian economies, especially South Korea, is urgent since the
ongoing regional recession may indeed spread out to affect even the more stable American economy. An American recession will
surely trigger a global recession. The South Korea $50 billion bailout, the biggest ever, bigger than the Mexican bailout, hints how
urgent the situation is.
The US is currently running a $600 billion current-account deficit (trade deficit adjusted by unilateral transfers such as interest
earned abroad). This means the US must borrow more than $1.5 billion per day on a net basis from international lenders. For
borrowers such as the US, it is generally easier to pay back loans in a depreciating currency rather than an appreciating one. Due to the
large sums involved and a weak domestic economy, a strong dollar would make it more difficult for the US to finance its self-
appointed role as the “world’s policeman”. The US’s increasingly desperate financial condition is not good news for the world.
With short-term interest rates near zero, there is little additional economic benefit to be gained from lowering them further.
This leaves a cheaper dollar as one of the last levers to stimulate the US economy. As long as lenders are willing to invest in dollar
assets, the US can continue to borrow to maintain its current lifestyle. However, if foreign lenders begin to shun US markets because
of a falling dollar, it could cause serious problems for the US Government, economy and people. For many years the US has been
the economic engine for the world, standing in as purchaser of last resort for the world’s supply of goods in times of global
economic distress. Now the US itself is in trouble. If the US attempts to fight the rapidly gaining forces of deflation by
encouraging a depreciating dollar, it will export deflation to the rest of the world because foreign currencies will rise relative to
the dollar. This will damage foreign economies and inhibit their ability to buy goods and services, including those from the US.
Since the short-term benefit of a weak dollar to US corporations’ earnings will show up quickly, while the long-term damage to the
global economy will become apparent only with the passage of time, it is a fair assumption that the US will take the easy route and
worry about the global fallout later.
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Heg
Fiscal Discipline is key to Heg, Global Economy
Vancouver Sun, 9/11/2007, “Winning the war on terror requires fiscal discipline in the United States”, lexis, BB
The day before Sept. 11, 2001, the national debt of the United States stood at $5.7 trillion US. By the end of last week, it was
$9 trillion and forecasters see it at $11 trillion by 2010. As a percentage of gross domestic product, U.S. debt is approaching
70 per cent. It was worse briefly during and just after the Second World War, but the debt-to-GDP ratio today is at its
highest level in four decades. The U.S. was quick to respond to the terrorist attacks that brought down the World Trade
Center twin towers, crashed a plane in a Pennsylvania field, and punched a hole in the Pentagon, taking a toll of 3,000 lives.
The Americans unleashed their intelligence units to track down the culprits and launched a military assault against Afghanistan,
which had been identified as a base and breeding ground for terrorism. At home, they established the Department of Homeland
Security, mandated to prevent, protect against and respond to acts of terrorism on U.S. soil. But, while the Americans flexed
their military muscle, beefed up border defences and embarked on a diplomatic mission to recruit allies to their cause, the
administration has done nothing to shore up the nation's perilous financial affairs. Enemies of the U.S. know that it
cannot be defeated on the battlefield. There are only two ways to topple the mighty American empire: Break the will of the
American people and disrupt the economy. The World Trade Center was a target not only because it dominated the
New York skyline, but because it was a symbol of U.S. economic power. In the aftermath of the attack, the Dow Jones
Industrial Average suffered its biggest point-drop ever, the unemployment rate jumped and the Federal Reserve began
slashing interest rates to forestall a recession. Fortunately, the economic impact of the attack was short-lived and robust
growth quickly resumed. However, public finances continued to deteriorate --and will continue to do so unless
Washington ends its addiction to deficits. The deficit this year is expected to reach $158 billion and, although it's a $90-
billion drop from 2006, the figure is still daunting and unlikely to decline further if the economy is crippled by the subprime
mortgage loan debacle. An ominous sign: The Congressional Budget Office expects real GDP growth will slow from an
average of 3.0 per cent between 2009 and 2012 to 2.6 per cent between 2013 and 2017. The U.S. government will spend
more than $400 billion this year -- or $1 of every $12 it spends -- just to service the debt. It is the largest single expenditure
after defence. Its debt load and deficit dependence leaves the U.S. vulnerable to economic shocks. Its insatiable appetite
for borrowing puts upward pressure on interest rates, which threatens to drive up interest costs, forcing Washington to
borrow even more. At some point it will have to cut spending or raise taxes -- and probably both -- in order to stop this cycle
of fiscal folly. Meanwhile, the U.S. has been running record trade deficits. Last year, the gap between what the U.S. sold
abroad and what it imported amounted to $763 billion. About one-third of the imbalance was with China, not the most
appealing or reliable trading partner. Trade deficits siphon spending power out of the U.S., further jeopardizing economic
growth. Substituting ethanol for oil will not address this dilemma. With its fiscal house in disarray, it's no wonder the
U.S. dollar has been devalued in international currency markets. For decades, the greenback has been an icon of
economic strength. As its value against other currencies falls, one can't help wonder whether it marks the decline of
American hegemony, not only in the global economy, but in geopolitics. It would compound the tragedy of 9/11 if the
influence of the U.S. government in the international arena was diminished as a result of the administration's neglect of
public finances. U.S. President George W. Bush could salvage his legacy to some extent by setting a course for solvency. The
public accounts are vital to the health of nations. Ensuring they are in good shape and resistant to economic warfare is
as important as secure borders and military victories. Canada cut its debt-to-GDP ratio from 73 per cent to 38 per cent in a
decade. It can be done. For the sake of global security and prosperity, it must be done.
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U.S. Leadership and Hegemony is Key To Prevent War
Khalilzad ’95 (Washington Quarterly)
http://www.lexisnexis.com:80/us/lnacademic/search/homesubmitForm.do Under the third option, the United
States would seek to retain global leadership and to preclude the rise of a global rival or a return to multipolarity for the indefinite
future. On balance, this is the best long-term guiding principle and vision. Such a vision is desirable not as an end in itself, but because
a world in which the United States exercises leadership would have tremendous advantages. First, the global environment would be
more open and more receptive to American values -- democracy, free markets, and the rule of law. Second, such a world would have a
better chance of dealing cooperatively with the world's major problems, such as nuclear proliferation, threats of regional hegemony by
renegade states, and low-level conflicts. Finally, U.S. leadership would help preclude the rise of another hostile global rival, enabling
the United States and the world to avoid another global cold or hot war and all the attendant dangers, including a global nuclear
exchange. U.S. leadership would therefore be more conducive to global stability than a bipolar or a multipolar balance of power
system.
The problem with this approach for the Bush administration is that there are great risks to a weak dollar policy. The world
economy is awash in dollars, and when there is too much of something the price or value usually drops, sometimes
precipitously. If confidence in the dollar or dollar assets, such as Treasury bonds, declines, the world may, at some point,
reconsider its involvement with US assets. The results of such a reappraisal could be anything from mildly damaging to
catastrophic. Seventy-five per cent of the world’s central-bank assets are held in US dollars (as Treasury bonds). These bankers
do not want their primary asset to suffer a significant decline. Many nations, like Japan, recycle their trade surpluses into US
dollars by purchasing and holding US Treasury bonds. They do this out of self-interest. In the case of Japan, it helps to weaken the
yen relative to the dollar. It is hard to imagine the Japanese reversing this policy, as it would harm their own corporations. However
Japan, together with the rest of the world, holds nearly a third of total US Treasury debt. If these countries were to stop buying
Treasuries, let alone start selling the ones they already own, the US would be in serious trouble. What should concern the US
authorities about a weak dollar policy is that the decline could spin out of control.
When the global stock-market crash predicted in this magazine occurs, international support for the dollar will likely evaporate
as countries sell dollar assets to shore up their own ailing economies. If this happens, the US will have great difficulty funding
its historically large budget and trade deficits. At a most inopportune time, the US may be forced to raise interest rates sharply
to attract the capital to meet its obligations. This would be a further blow to an ailing economy. A collapsing US stock market
would almost certainly usher in a period of deflation for the American economy. Recent statements by Federal Reserve chairman
Alan Greenspan and New York ‘Fed’ governor Bernacke make clear that the Fed is concerned about deflation and stands ready to print
an unlimited supply of dollars to fight this eventuality. These statements are unprecedented in the 90-year history of the US Federal
Reserve Bank and are tantamount to a declaration that they stand willing to destroy the value of the dollar in the event of a serious
crisis.
Today, many forces are coming together that could lead to a collapse of the US dollar. Among these are its oversupply, low interest
rates, the need to fight deflation, continuing stock-market declines, and a potential derivatives meltdown [see Share International May
1990] It is highly likely that in the not-too-distant future all of these factors will come into play simultaneously. In addition, many of
the world’s financiers, central bankers, and government officials cannot be pleased with the economic and foreign policies of the Bush
administration. They well know that the continued recycling of capital into US assets serves, at least in part, to allow the US to
dominate the world. If the people who control the world’s capital were to decide, for whatever reason, to cease buying Treasury
securities and to liquidate those they own, the dollar would collapse and the US would experience an unprecedented economic
shock. Were this to happen, the world would witness the end of American hegemony.
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Extinction
However no outside force guarantees the continued progress of the human species, nor does anything mandate that the
human species must even continue to exist. In fact, history is littered with raves and civilizations that have disappeared without
a trace. So too could the human species. There is no guarantee that the human species will survive even if we posit, as
many have, a special purpose to the species’ existence. Therefore, the species innately comprehends that it must engage in
purposive actions in order to maintain its level of growth and progress. Humanity’s future is conditioned by what I have
called the imperative of growth, a principle I will herewith describe along with its several corollaries. The imperative of
growth stat that in order to survive, any nation, indeed, the human rave, must grow, both materially and intellectually.
The macro industrial era represents growth in the Ares of both technology and human development, a natural stage in
the evolution of the species’ continued extension of its control over itself and its environment. Although 5 billion strong,
our continued existence depends on our ability to continue the progress we have been making at higher and higher levels.
Systems, whether organizations, societies, or cell have three basic directions in which to move. They can grow decline, or
temporarily reside in a state of equilibrium. These are the choices. Choosing any alternative to growth for instance,
stabilization of production/consumption thought zero-growth policies could have alarmingly pernicious side effects including
extinction.
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Quality of Life
Economic Downturn Hurts Environmental and Social Efforts
Leonard Silk Winter 1993 (prof. of economics @ Pace U.), Foreign Affairs
Like the Great Depression, the current economic slump has fanned the fires of nationalist, ethnic and religious hatred around
the world. Economic hardship is not the only cause of these social and political pathologies, but it aggravates all of them, and
in turn they feed back on economic development. They also undermine efforts to deal with such global problems as
environmental pollution, the production and trafficking of drugs, crime, sickness, famine, AIDS and other plagues. Growth will
not solve all of these problems by itself. But economic growth – and growth alone – creates the additional resources that make
it possible to achieve such fundamental goals as higher living standards, national and collective security, a healthier
environment, and more liberal and open economies and societies.
Countries have ended mass poverty only by following policies that encourage economic growth. But that growth must be self-
sustaining to translate into enduring increases in wealth. Policies of forced industrialization or state-led development may produce
high growth for a time, but history has shown that such episodes are followed by economic contraction. Economic freedom, by
contrast, shows a strong relationship with prosperity and growth over time. Fortunately, many developing countries are following that
path, producing high and rapid growth and showing that it is good for the poor. Their experience may create a demonstration effect for
the majority of nations that are in many ways still economically unfree. All developing nations can do more to increase growth.
Establishing the rule of law, reducing barriers that hamper entrepreneurship and competition, and recognizing the property rights of
the poor are three reforms that go beyond the liberalization measures that many countries have already introduced. Those reforms not
only contribute to economic growth; they increase the effectiveness of growth in reducing poverty. Policy-makers in rich and poor
countries alike should not lose focus on the promise of growth. It remains the only path to end mass poverty
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Quality of Life
Poor Economy and Deficits Lower the Quality of life for the Working Class,
Destroying American Society
William K. Tabb 5/11/06 taught economics at Queens College for many years, and economics, political science, and sociology at the
Graduate Center of the City University of New York. His books include Economic Governance in the Age of Globalization (Columbia
University Press, 2004), Unequal Partners: A Primer on Globalization (The New Press, 2002),
http://www.monthlyreview.org/0506tabb.htm Thomas Friedman, the New York Times columnist, argues that Bush is not good for
America. He writes that the country “faces a huge set of challenges if it is going to retain its competitive edge. As a nation, we
have a mounting educational deficit, energy deficit, budget deficit, health care deficit and ambition deficit. The administration is
in denial on this, and Congress is off on Mars.” Friedman asks where are the American corporate leaders who would benefit from a
serious effort to address these deficits. He can point to G.M.’s interest in health care since its benefit costs have made it
noncompetitive and asks if there is any corporation in America that should not be protesting Bush’s cuts in federally sponsored basic
research, a key source of innovation. But he also answers with a different voice noting that many key U.S.-based industries get most of
their profits and increasingly their best talent from abroad. They are less motivated than in the past to deal with a Congress “catering
to people who think ‘intelligent design’ is something done by God and not by Intel.” There is, however, another way of looking at this.
Consider that part of the higher return enjoyed by American investors results from the power of the U.S. imperial state, power that
insures against bad treatment. U.S. power sets the rules on debt repayment, intellectual property rights, investor security, market
access, and so on, things that no other state can insure for its investors, at least not to the same degree. The difference in the rate of
return exists because foreigners are interested in a safe return and the security of their principal, while Americans investing in risky
assets have some assurance that the global state economic governance institutions such as the World Bank and the International
Monetary Fund, or if needed the U.S. Marines or threats by the State Department, will enforce debt collection so that their debts will
be collected. U.S.-based firms charge exorbitantly for intellectual property and collect intellectual property rents, enforced by the
World Trade Organization and the U.S. government, but these go to the bottom line of the companies in question. This is surely good
news for those who own those U.S. assets abroad. Sadly, working-class Americans, who are experiencing stagnant or falling real
wages, do not share this satisfaction. For them, wages, shrinking benefits, and deteriorating job quality matter more than the
external balance position of the United States. In the United States in which they live, income inequality grows dramatically,
health care costs rise beyond the means of families, and secure retirement is a vanishing prospect. These are the real deficits for
most Americans, serious shortfalls from what they have been led to expect. They are now told that to be competitive, their country
must sacrifice its working people’s legitimate hopes. In the United States where the president talks of creating an ownership society
in which workers would “own” their own health care and retirement through privatized individual accounts, defined-benefit pensions,
which guarantee a fixed amount of money after retirement, are replaced by defined-contribution plans, in which benefits depend upon
what a worker can put in and the uncertainty of the equity market. The basic idea of social insurance, where all contribute and
receive based on need, is canceled as those who can afford more not only get more but receive favored tax treatment for each
dollar they set aside for their own welfare. As part of the program, there are reductions in income tax (paid disproportionately by the
rich), in taxation of corporations, and in capital gains and inheritance taxation that overwhelmingly benefit the rich. Government
deficits created by these regressive tax cuts are partially offset by increases in payroll taxes, and proposals pour forth in support of
consumption and flat-tax ideas—all new tax burdens for workers, with capital exempt. Instead of unemployment benefits, there are to
be personal reemployment and training accounts of limited size. Instead of well-funded public education, there are unfunded
mandated testing and school vouchers. Consumers hurt by defective products and such are limited in their right to sue, and
people who are bankrupted by personal tragedy can no longer seek bankruptcy relief as they have in the past. Government
regulations to protect consumers are seen as inefficient because they increase the costs of doing business and are repealed or go
unenforced, or are enforced by former industry partisans. Devolution of responsibilities from federal to state government undermines
promised benefit levels, since states cannot afford such burdens and federal help is reduced. This is the Ownership Society as
envisioned by George W. Bush and those around him. It is a package of policies attacking the idea of citizenship rights and follows
Margaret Thatcher’s principle that there is no such thing as society, only individuals. It stands in contrast to the principle unifying
working-class movements everywhere—and at all times—solidarity. The deficits the Bush administration have created are
undermining American society as we have known it.
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Quality of Life
Lack of Economic Growth Causes Nuclear War
Leonard Silk, Professor at Pace University ‘96 (Making Capitalism Work, p. 27-28)
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Imperialism
Furthering current negative economic trends leads to imperialism
William K. Tabb 5/11/06 taught economics at Queens College for many years, and economics, political science, and sociology at the
Graduate Center of the City University of New York. His books include Economic Governance in the Age of Globalization (Columbia
University Press, 2004), Unequal Partners: A Primer on Globalization (The New Press, 2002),
http://www.monthlyreview.org/0506tabb.htm While mainstream economists dismiss any idea of a race to the bottom, there is an
unquestionable slowing of growth and an emergent underconsumptionist, or rather overaccumulationist, trend. While global
growth has slowed, the reach of transnational capital has dramatically increased, and its power to seek out lower costs and play
workers in one place against workers elsewhere has grown. What we are seeing is a process of redistributional growth, in which
over the ups and downs of the business cycle, capital’s share of the social product is increasing and labor’s share is
diminishing. There is a clear thread that connects domestic developments in the U.S. income distribution, debt-funded growth,
the increased dominance of the rentier capitalists who profit from these developments, and global ambitions and the projection
of imperial dominance. A century ago John A. Hobson argued that as the power of rentiers grows and taxation becomes more
dramatically regressive, a hegemonic power (then Great Britain) is tempted to engage in imperialism. Hobson urged higher
taxation of incomes generated as a result of financial speculation and government favoritism to produce a more equal distribution of
income and higher working-class and middle-income spending, which would encourage domestic investment and make imperialism
less attractive. He wrote, The issue in a word, is between external expansion of markets and of territory on the one hand, and
internal social and industrial reforms upon the other; between a militant imperialism animated by the lust for quantitative
growth as a means by which the governing and possessing classes may retain their monopoly of political power and industrial
supremacy, and a peaceful democracy engaged upon the development of its national resources in order to secure for all members the conditions of
improved comfort, security, and leisure essential for a worthy national life. (John A. Hobson, “Free Trade and Foreign Policy,” Contemporary Review 64 [1898]:
179, quoted in Leonard Seabrooke, “The Economic Taproot of US Imperialism: The Bush Rentier Shift,” International Politics 41, no. 3 (September 2004): 293–
318. Today the “rentier shift” produces the very conditions Hobson warned of in the context of Great Britain a century ago. The growth of the rentier
economy and the drive for external expansion long evident in U.S. history (and surely under both Clinton and Bush, albeit with a
different policy mix) has been fed by an investor politics that has favored the very rich disproportionately in both taxation and
government spending priorities. The dramatic increases in the upward redistribution of income have contributed to driving the
investor class to look for opportunities abroad as the slower growth, and indeed saturation, of domestic markets pushes them to do.
And this is taking place even as their increased class dominance—with trade unions and working-class power weakening, and real
wages stagnating—allows them to push for a greater degree of regressive taxation and less progressive redistributive state spending.
Along Hobsonian lines, Arjay Kapur, a Citigroup strategist, argues that the rich are responsible for the low saving rate in Anglo-Saxon economies,
which he describes as “plutonomies”—economies driven primarily by the wealthy as compared to the more egalitarian Japanese and European economies. In the
plutonomies, above all the United States, it makes little sense to speak of the average consumer, since the top one percent of all households has 20 percent of the
income, about the same as the bottom 60 percent. Spending in the United States is driven by the asset inflation of the equity and real estate holdings of the top 10
percent of the income distribution. The wealth effect of such holdings allows debt- financed spending and results in the negative saving rate. Kapur finds that
throughout our history there has been a strong negative correlation between the share of U.S. income going to the top 1 percent and the overall saving rate—the higher
the share, the lower the saving rate. Economies with low saving rates tend to show current account deficits and the need for foreign borrowing. To this analysis one
might add that the power of the United States to command foreign credit depends in some measure on the power of the U.S. state, the continued use of the dollar as the
reserve currency, and other factors which ultimately rest on U.S. imperial power. This relation is two-way. Harvard’s Linda Bilmes and Columbia’s Joseph Stiglitz
estimate that the eventual cost of the war in Iraq will be more than a trillion dollars and possibly closer to two trillion dollars. So far the Bush administration has
borrowed the money and underestimated the cost, but its policies raise the specter of imperial overstretch and the need for further coercion to keep the American
economy afloat. Past empires have followed the path that the United States seems to be going down, a movement from manufacturing production as the core activity to
financialization and rentier income, and then finally bankruptcy from a loss of competitiveness and the cost of maintaining empire. For the elite there seems no better
alternative, even if this is finally a negative-sum result. Any more positive strategy from the perspective of a democratic majority would require policies that would
weaken the power of the ruling elite. It appears to this elite that it is better to continue to get rich and maintain power through the period of national decline. To the
extent that this class can obtain rents from the familiar sources of state handouts, corrupt dealings, and tax policies, it stands to gain. In conclusion, the concern over
debt levels and bubbles is certainly appropriate. What is essentially a regional and sectoral disproportionality crisis leading to imbalance in capital flows and the high
debt position of the United States is deserving of the attention it is receiving from all points on the ideological compass. What must be central to such discussions,
however, is the class dimension of the accompanying redistribution of wealth and power and the resultant impact on members of the world’s working classes.
Disproportionalities are more than matters of technical economics. They are manifestations of class struggle. Understood in this way, analysis enables more clear-
sighted mobilization addressed at real enemies and demands for real solutions. Imperialist adventurism today serves the U.S. ruling
class. It comes at the expense of working people everywhere.
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Oil Impact
High Oil Prices and Shocks Cause Economic Recession
Telegraph Herald 4-28- 04
http://www.lexisnexis.com:80/us/lnacademic/search/focusSearch.do?risb=21_T4183683028&pap=results_listview_Listview&formSta
teKey=29_T4183683032&format=GNBLIST&returnTo=20_T4183683029
Some economists say things could get worse. "It could cause a recession if oil prices go high enough," David Wyss, chief
economist at Standard & Poor's in New York, told the Associated Press this week. Oil price shocks have played a role in four of
the last five U.S. recessions during the past three decades, according to the Associated Press. The price of crude, the key
component in gasoline, has flirted with a record-smashing $$ @42 per barrel in recent weeks. While the price has retreated
more than $$ @2 since May 17, due in large part to OPEC's reported willingness to step up production, many analysts worry
crude prices could remain high for the remainder of the year. High gas prices act much like a tax, as consumers forsake some
discretionary spending for the necessity of filling up their cars. Since consumers fuel two-thirds of the nation's economy,
spending cutbacks in other areas could hurt an economic recovery that appears to be picking up steam, analysts say. With diesel
prices also on the rise, truckers are living with higher fuel surcharges, which in turn get passed along to manufacturers and,
ultimately, consumers.
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Afghanistan war – In October 2001, the United States attacked Afghanistan as a starting chapter of the ‘War on terrorism’,
which still continues today. The ultimate goal was to replace the Taliban government, and to find apparent 9/11 mastermind and
Al-Qaeda member Osama Bin Laden. Many European countries assisted the US in what was called ‘Operation Enduring
Freedom’. During the war, extensive damage was done to the environment, and many people suffered health effects from
weapons applied to destroy enemy targets. It is estimated that ten thousand villages, and their surrounding
environments were destroyed. Safe drinking water declined, because of a destruction of water infrastructure and
resulting leaks, bacterial contamination and water theft. Rivers and groundwater were contaminated by poorly
constructed landfills located near the sources.Afghanistan once consisted of major forests watered by monsoons. During
the war, Taliban members illegally trading timber in Pakistan destroyed much of the forest cover. US bombings and
refugees in need of firewood destroyed much of what remained. Less than 2% of the country still contains a forest cover
today.Bombs threaten much of the country’s wildlife. One the world’s important migratory thoroughfare leads through
Afghanistan. The number of birds now flying this route has dropped by 85%. In the mountains many large animals such
as leopards found refuge, but much of the habitat is applied as refuge for military forces now. Additionally, refugees
capture leopards and other large animals are and trade them for safe passage across the border.Pollution from application of
explosives entered air, soil and water. One example is cyclonite, a toxic substance that may cause cancer. Rocket
propellants deposited perchlorates, which damage the thyroid gland. Numerous landmines left behind in Afghan soils
still cause the deaths of men, women and children today.
Iraq & Kuwait – The Gulf War was fought between Iraq, Kuwait and a number of western countries in 1991. Kuwait had been
part of Iraq in the past, but was liberated by British imperialism, as the Iraqi government described it. In August 1990, Iraqi
forces claimed that the country was illegally extracting oil from Iraqi territory, and attacked. The United Nations attempted to
liberate Kuwait. Starting January 1991, Operation Desert Storm began, with the purpose of destroying Iraqi air force and anti-
aircraft facilities, and command and control facilities. The battle was fought in Iraq, Kuwait and the Saudi-Arabian border
region. Both aerial and ground artillery was applied. Late January, Iraqi aircraft were flown to Iran, and Iraqi forces began to
flee.The Gulf War was one of the most environmentally devastating wars ever fought. Iraq dumped approximately one
million tons of crude oil into the Persian Gulf, thereby causing the largest oil spill in history (see environmental disasters).
Approximately 25,000 migratory birds were killed. The impact on marine life was not as severe as expected, because warm
water sped up the natural breakdown of oil. Local prawn fisheries did experience problems after the war. Crude oil was also
spilled into the desert, forming oil lakes covering 50 square kilometres. In due time the oil percolated into groundwater
aquifers. Fleeing Iraqi troops ignited Kuwaiti oil sources, releasing half a ton of air pollutants into the atmosphere.
Environmental problems caused by the oil fires include smog formation and acid rain. Toxic fumes originating from the
burning oil wells compromised human health, and threatened wildlife. A soot layer was deposited on the desert,
covering plants, and thereby preventing them from breathing. Seawater was applied to extinguish the oil fires, resulting
in increased salinity in areas close to oil wells. It took about nine months to extinguish the fires.During the war, many dams
and sewage water treatment plants were targeted and destroyed. A lack of possibilities for water treatment resulting
from the attacks caused sewage to flow directly into the Tigris and Euphrates rivers.
Environmental Health Perspectives (EHP) is a monthly journal of peer-reviewed research and news on the impact of the environment
on human health. EHP is published by the National Institute of Environmental Health Sciences and its content is free online. Print
issues are available by paid subscription. Environmental Health Perspectives Volume 112, Number 17, December 2004 // Benson
Herbicides as a weapon first came on to the radar during the Vietnam War, when some 19 million gallons of chemicals
were sprayed on Vietnam and Laos to strip away enemy cover and destroy crops. The different herbicide formulations,
known collectively today as Agent Orange, were contaminated with 2,3,7,8-tetrachlorodibenzo-p-dioxin, a known human
carcinogen. Decades after spraying ended, a quarter of this persistent toxicant remains in the Vietnamese environment,
and the NIEHS and the Vietnamese government are working together to fully characterize the health effects of exposure to
Agent Orange. Today, herbicides play a major role in the Colombian drug war, another example of the changed nature of
modern war. Several insurgent groups have been battling the Colombian government in a protracted and bloody civil war. The
war has provided narcotics growers and processors uncontrolled zones in which they can flourish; insurgents and narcotics
cartels have formed alliances. According to the U.S. embassy in Bogotá, most of the cocaine and heroin on the U.S. market
comes from Colombia. To stop this flood, the U.S. and Colombian governments have jointly developed and implemented the
Plan Colombia eradication program.
Crop casualties. Many Colombian farmers believe their crops, like these bananas, are being ruined by drift from herbicide
spraying of illegal poppy and coca crops. Many of the ruined crops were planted at the urging of the government as alternatives
to the illegal plants. image credit: Witness for Peace
A major component of the plan is aerial spraying of herbicide on coca and poppy plants, which began in 2000. The main
ingredient is glyphosate, widely used as a weed killer in several formulations of Monsanto's Roundup and in other products,
and the most commonly used commercial herbicide in the world. According to the National Pesticide Telecommunications
Network, glyphosate causes mild eye and skin irritation and digestive and respiratory irritation when ingested, and has
not been shown to cause reproductive damage or cancer in humans or wildlife. However, many Colombian farmers in
sprayed areas report significant skin problems, headaches, vomiting, miscarriages, and deaths of small children--effects
that they attribute to the spraying. Residents of the sprayed areas are not told when spraying will occur for security
reasons, so they cannot take any steps to protect themselves, their families, their crops, or their livestock.
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Preparing for war is a heavily industrialized mission that generates fuel spills, hazardous waste, and air pollution. The
DOD owns more than 10% of the 1,240 sites currently on the National Priorities List, and has estimated the cost of cleaning up
these sites at approximately $9.7 billion. In addition to lead and a variety of solvents, training facilities release munitions
constituents including perchlorate (a thyroid toxicant), RDX (an explosive compound and neurotoxicant), and TNT (an
explosive compound linked to anemia and altered liver function). Nearly 1 in 10 Americans live within 10 miles of a DOD
Superfund site--a sometimes perilous proximity. The Massachusetts Military Reservation, for instance, a 34-square-mile
multi-use training facility in Cape Cod, is slowly leaching solvents, jet fuel, RDX, and perchlorate into the area's sole
aquifer, a drinking water source for up to 500,000 people at the height of tourist season. Military aircraft from DOD
facilities also generate noise and air pollution. For instance, in 1996, the most recent year for which data are available, more
than 50,000 military flights contributed to the heavy air traffic over Washington, D.C. According to the Democratic
Committee on Energy and Commerce, these flights emitted 75 tons of nitrogen oxides and volatile organic compounds,
which generate smog. In 1999, the Sierra Army Depot, located 55 miles northeast of Reno, was California's leading air
polluter, according to the EPA Toxics Release Inventory. The base released some 5.4 million pounds of toxic chemicals that
year, including aluminum, copper, and zinc fumes. As of this publication, Congress has approved legislation requested by the
DOD amending the Migratory Bird Protection Act, portions of the Endangered Species Act, and the Marine Mammal
Protection Act. Now, the DOD is seeking changes through the RRPI to certain hazardous waste laws--specifically, the
Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Resource Conservation and
Recovery Act (RCRA), and the Clean Air Act (CAA). The DOD acknowledges that these laws have never been shown to have
interfered with specific military training, but says it can't afford to wait until training is shut down before it acts. As evidence of
the need to act now, the DOD points to a number of lawsuits and "close calls," including the case at Eagle River Flats and the
Navy's 2002 temporary closure of its Farallon de Medinilla live-fire training range in the Pacific. That closure followed a
lawsuit filed by the Center for Biological Diversity alleging that bombing at the range was killing protected migratory
birds. The DOD argues that even the threat of interference by hazardous waste litigation justifies its aims. Joe Willging, an
environmental lawyer with the DOD General Counsel's office, says in reference to the Farallon de Medinilla closure, "We don't
feel it's wise to wait for that kind of train wreck to see if we are going to lose in litigation. . . . Our job is to send soldiers,
sailors, airmen, and Marines into combat environments in the absolute best-prepared way we can. You can't do that if you
introduce artificialities into training. We want to maintain the ability to use those ranges in the optimum way based on military
readiness considerations, not on other considerations.
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Additionally, pollutants seeped from bombed chemical plants into the rivers. Drinking water extracted from the river
was polluted, resulting in widespread disease. For example, cases of typhoid fever have increased tenfold since 1991.
Movement of heavy machinery such as tanks through the desert damaged the brittle surface, causing soil erosion. Sand was
uncovered that formed gradually moving sand dunes. These dunes may one day cause problems for Kuwait City. Tanks fired
Depleted Uranium (DU) missiles, which can puncture heavy artillery structures. DU is a heavy metal that causes kidney
damage and is suspected to be teratogenic and carcinogenic. Post-Gulf War reports state an increase in birth defects for
children born to veterans. The impact of Depleted Uranium could not be thoroughly investigated after the Gulf War, because
Saddam Hussein refused to cooperate. Its true properties were revealed after the Kosovo War in 2001 (description below). DU
has now been identified as a neurotoxin, and birth defects and cancers are attributed to other chemical and nerve agents.
However, it is stated that DU oxides deposited in the lungs of veterans have not been thoroughly researched yet. It was later
found that this may cause kidney and lung infections for highly exposed persons.After the Gulf War many veterans
suffered from a condition now known as the Gulf War Syndrome. The causes of the illness are subject to widespread
speculation. Examples of possible causes are exposure to DU (see above), chemical weapons (nerve gas and mustard gas),
an anthrax vaccine given to 41% of US soldiers and 60-75% of UK soldiers, smoke from burning oil wells and parasites.
Symptoms of the GWS included chronic fatigue, muscle problems, diarrhoea, migraine, memory loss, skin problems
and shortness of breath. Many Gulf War veterans have died of illnesses such as brain cancer, now acknowledged as
potentially connected to service during the war.
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In the 1980s, when the United States faced significant competitive challenges from Japan and Germany, U.S. industry, labor,
and government worked out a series of competitiveness policies and approaches that helped pave the way for the nation’s
revitalized economic leadership in the 1990s. In the mid-1980s President Reagan appointed Hewlett Packard president John Young
to head a bipartisan competitiveness commission, which recommended a practical policy approach designed to defuse ideological
squabbling. Although many of its recommendations were enacted slowly or not at all, the commission created a new focus on public-
private partnerships, on R&D investments (especially in IT), and on successful competition in trade rather than protectionism. This
became the generally accepted response and provided the building blocks for the 1990s boom. The Young Commission was followed
by Congress’s Competitiveness Policy Council through 1997. These efforts were successful in redefining the economic debate in
part because they built on the experiences, well-remembered at the time, of industry and government collaboration that was so
successful in World War II and in responding to Sputnik. Those are much more distant memories in this new century, but we
should revisit the Young Commission model. The private sector Council on Competitiveness, originally led by Young, has assembled a
group of leading industry, labor, and academic leaders to prepare a National Innovation Initiative, which could provide a blueprint for
action. Legislation has been introduced in the Senate to establish a new bipartisan competitiveness commission that would have the
prestige and leverage to stimulate government action. The U.S. economy is the most flexible and resilient in the world. The
country possesses a highly talented workforce, powerful and efficient capital markets, the strongest R&D system, and the
energy of entrepreneurs and many dynamic companies. That by itself will not guarantee success in a changing economy, but it
gives the country the wherewithal to adapt to an evolving world. Challenges to U.S. dominance are visible everywhere. Strong
economic growth is vital to the U.S. national mission, and innovation is the key to that growth. The United States needs to
fashion a new competitiveness agenda designed to speed the velocity of innovation to meet the great challenges of the new century.
Once that agenda has been crafted, the nation must find the political will to implement it.
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The questions regarding U.S. macroeconomic policy these days come down to whether the country can keep borrowing. Can consumers keep spending by increasing
their debt level? Can the federal government keep running a large budget deficit without serious problems developing? Can the U.S. current account deficit keep
growing? Will foreigners keep buying government bonds to cover this growing debt? If the answer is no to such questions, we can expect serious trouble and not just
for the United States but for the rest of the world, which has grown used to the United States as the consumer of last resort. The United States buys 50 percent more than
it sells overseas, enough to sink any other economy. In another economy, such a deficit would lead to a severe devaluation of the currency, sharply inflating the
price of imports and forcing the monetary authorities to push interest rates up considerably. The United States started to run annual
trade deficits in 1976 and has done so every year since. In 1985, this country became a net debtor nation, owing more to the rest of
the world than is owed to it. By 1987, it became the world’s largest net debtor nation. The debt has grown and grown since, to the
point where economists Nouriel Roubini and Brad Setser suggest that “The current account deficit will continue to grow on the
back of higher and higher payments of U.S. foreign debt even if the trade deficit stabilizes. That is why sustained trade deficits
will set off the kind of explosive debt dynamics that will lead to financial crises.” However it also seems to be in everybody’s
interest to keep the game going. Asian countries, especially China, want to continue exporting to the United States and keep their
currencies from strengthening, preferring to export to Americans and then to loan the money back to them so that they can buy more.
Much of the foreign savings go into U.S. government bonds, keeping U.S. interest rates down (currently half of U.S. Treasury
bonds are owned by foreigners). The cost of this debt seems manageable, in part because there is slower growth in most of the
world’s countries, and so there is plenty of finance capital looking for a safe place to get positive returns. And the low interest
rates allow American households to borrow more cheaply, using home equity loans on the seemingly ever-rising value of their
homes. The problem is, as Herbert Stein, Nixon’s economic adviser, famously said, “Things that can’t go on forever, don’t.” Surely a reckoning is coming. U.S.
household debt has reached $11.5 trillion, an amount equal to an unprecedented 127 percent of annual disposable income. The most recent figures by the Federal
Reserve show the cost of debt servicing nearing a record high of 14 percent of disposable income—and interest rates are going up. How long will Asians and others
hold U.S. debt when the dollar finally starts to fall and they take losses on their holdings? Ah, but we have the equally famous retort from Mr. Nixon’s Treasury
Secretary, John Connally, “It’s our currency, but it’s your problem.” America’s creditors can’t let the dollar fall too far without
serious costs to themselves (their dollar holdings will buy less the lower the exchange value of the dollar). They will be drawn
to keep lending. And sure enough, recently the dollar has defied expectations and strengthened, not weakened. The bubbles and
all the debt are serious economic problems and will have political consequences. However, people have been waiting for the dollar to
collapse for a while; if it does, will all the unsustainable debt really be unsustainable? Will the dollar fall this year or next? Maybe. But
it is possible to argue, and many do, that in an era of financial globalization, in which productivity growth in the United States
continues to outpace that in other advanced economies, the United States will continue to be the destination for investment
capital. As foreigners diversify out of their own economies, the United States continues to look good. Why shouldn’t foreign
investment exceed 100 percent of the U.S. GDP? Why would this be a problem? Why would anyone want their money back if returns are competitive? Why then should
the dollar fall? In any case, the big buyers of U.S. treasuries are foreign governments. They are not motivated simply by financial returns. Political pressure can be
exerted by Washington should their view of their own self interest change. But why should it change? As for the federal deficit, why shouldn’t the Republicans keep
enlarging the national debt? This “starves the beast.” It prevents public spending they don’t want on other grounds. Is there support for such a Panglossian
perspective? The “know-how” that U.S. transnationals export when they invest abroad is a major and uncounted (in the U.S.
international financial accounts) export which seems to be responsible for the higher return on foreign investment enjoyed by
U.S. investors compared to the return on foreign investment made in the United States. Michael Mandel, Business Week’s
economics editor, argues that the United States is really doing far better than the trade and capital flow accounts indicate
because of what is going on in the knowledge economy. Intangibles such as research and development (R&D) and the export of knowledge are poorly
tracked by the federal government’s outmoded statistical gatherers, who still use industrial era categories. According to Business Week calculations, the ten biggest U.S.
companies that report their R&D spending—firms such as ExxonMobil, General Electric, Microsoft, and Intel—have boosted R&D spending by 42 percent from 2000
to 2005, while over these years their capital spending only increased by 2 percent. What looks like less investment is really less investment in plant and equipment but
not in intangible investments calculated to improve profits. America’s “knowledge-adjusted” GDP is moving right along, and that is why profits stay high. The
decline in nominal investment also reflects the fact that capital goods are becoming less expensive because of productivity
growth in the capital goods sector, capital deepening, and the enhanced efficiency due to improved information technology.
Even conceding that investment in the United States may be somewhat higher than official data show, it is not doing much to help the United States become more
competitive. The nation’s problems are more severe, upsetting not only to its working people but to some unexpected establishment ideologues who have long
celebrated globalization.
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William B. Bonvillian is Legislative Director and Chief Counsel to Sen. Joseph Lieberman of Connecticut, Issues in Science and
Technology, fall 2004-Meeting the New Challenge to U.S. Economic Competitiveness
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Econ resilient In the 1980s, when the United States faced significant competitive challenges from Japan and Germany, U.S.
industry, labor, and government worked out a series of competitiveness policies and approaches that helped pave the way for
the nation’s revitalized economic leadership in the 1990s. In the mid-1980s President Reagan appointed Hewlett Packard president
John Young to head a bipartisan competitiveness commission, which recommended a practical policy approach designed to defuse
ideological squabbling. Although many of its recommendations were enacted slowly or not at all, the commission created a new focus
on public-private partnerships, on R&D investments (especially in IT), and on successful competition in trade rather than
protectionism. This became the generally accepted response and provided the building blocks for the 1990s boom. The Young
Commission was followed by Congress’s Competitiveness Policy Council through 1997. These efforts were successful in
redefining the economic debate in part because they built on the experiences, well-remembered at the time, of industry and
government collaboration that was so successful in World War II and in responding to Sputnik. Those are much more distant
memories in this new century, but we should revisit the Young Commission model. The private sector Council on Competitiveness,
originally led by Young, has assembled a group of leading industry, labor, and academic leaders to prepare a National Innovation
Initiative, which could provide a blueprint for action. Legislation has been introduced in the Senate to establish a new bipartisan
competitiveness commission that would have the prestige and leverage to stimulate government action. The U.S. economy is the
most flexible and resilient in the world. The country possesses a highly talented workforce, powerful and efficient capital
markets, the strongest R&D system, and the energy of entrepreneurs and many dynamic companies. That by itself will not
guarantee success in a changing economy, but it gives the country the wherewithal to adapt to an evolving world. Challenges to
U.S. dominance are visible everywhere. Strong economic growth is vital to the U.S. national mission, and innovation is the key
to that growth. The United States needs to fashion a new competitiveness agenda designed to speed the velocity of innovation to
meet the great challenges of the new century. Once that agenda has been crafted, the nation must find the political will to implement it.
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Given widespread failure to pursue policies sufficient to reverse deterioration of the biosphere and avoid ecological collapse,
the best we can hope for may be that the growth-based economic system crashes sooner rather than later Humanity and the
Earth are faced with an enormous conundrum -- sufficient climate policies enjoy political support only in times of rapid economic
growth. Yet this growth is the primary factor driving greenhouse gas emissions and other environmental ills. The growth
machine has pushed the planet well beyond its ecological carrying capacity, and unless constrained, can only lead to human
extinction and an end to complex life. With every economic downturn, like the one now looming in the United States, it becomes
more difficult and less likely that policy sufficient to ensure global ecological sustainability will be embraced. This essay explores the
possibility that from a biocentric viewpoint of needs for long-term global ecological, economic and social sustainability; it
would be better for the economic collapse to come now rather than later. Economic growth is a deadly disease upon the Earth,
with capitalism as its most virulent strain. Throw-away consumption and explosive population growth are made possible by using up
fossil fuels and destroying ecosystems. Holiday shopping numbers are covered by media in the same breath as Arctic ice melt, ignoring their deep connection.
Exponential economic growth destroys ecosystems and pushes the biosphere closer to failure. Humanity has proven itself unwilling and
unable to address climate change and other environmental threats with necessary haste and ambition. Action on coal, forests, population, renewable energy and emission
reductions could be taken now at net benefit to the economy. Yet, the losers -- primarily fossil fuel industries and their bought oligarchy -- successfully resist futures not
dependent upon their deadly products. Perpetual economic growth, and necessary climate and other ecological policies, are
fundamentally incompatible. Global ecological sustainability depends critically upon establishing a steady state economy, whereby
production is right-sized to not diminish natural capital. Whole industries like coal and natural forest logging will be eliminated
even as new opportunities emerge in solar energy and environmental restoration. This critical transition to both economic and
ecological sustainability is simply not happening on any scale. The challenge is how to carry out necessary environmental policies
even as economic growth ends and consumption plunges. The natural response is going to be liquidation of even more life-giving ecosystems, and
jettisoning of climate policies, to vainly try to maintain high growth and personal consumption. We know that humanity must reduce greenhouse gas emissions by at
least 80% over coming decades. How will this and other necessary climate mitigation strategies be maintained during years of economic downturns, resource wars,
reasonable demands for equitable consumption, and frankly, the weather being more pleasant in some places? If efforts to reduce emissions and
move to a steady state economy fail; the collapse of ecological, economic and social systems is assured. Bright greens take the continued
existence of a habitable Earth with viable, sustainable populations of all species including humans as the ultimate truth and the meaning of life. Whether this is possible
in a time of economic collapse is crucially dependent upon whether enough ecosystems and resources remain post collapse to allow humanity to recover and
reconstitute sustainable, relocalized societies. It may be better for the Earth and humanity's future that economic collapse comes sooner rather than later, while more
ecosystems and opportunities to return to nature's fold exist. Economic collapse will be deeply wrenching -- part Great Depression, part African famine. There will be
starvation and civil strife, and a long period of suffering and turmoil. Many will be killed as balance returns to the Earth. Most people
have forgotten how to grow food and that their identity is more than what they own. Yet there is some justice, in that those
who have lived most lightly upon the land will have an easier time of it, even as those super-consumers living in massive cities
finally learn where their food comes from and that ecology is the meaning of life. Economic collapse now means humanity and
the Earth ultimately survive to prosper again. Human suffering -- already the norm for many, but hitting the currently
materially affluent -- is inevitable given the degree to which the planet's carrying capacity has been exceeded. We are a couple
decades at most away from societal strife of a much greater magnitude as the Earth's biosphere fails. Humanity can take the
bitter medicine now, and recover while emerging better for it; or our total collapse can be a final, fatal death swoon. A
successful revolutionary response to imminent global ecosystem collapse would focus upon bringing down the Earth's industrial
economy now. As society continues to fail miserably to implement necessary changes to allow creation to continue, maybe the
best strategy to achieve global ecological sustainability is economic sabotage to hasten the day. It is more fragile than it looks. Humanity
is a marvelous creation. Yet her current dilemma is unprecedented. It is not yet known whether she is able to adapt, at some expense to her comfort and short-term well-
being, to ensure survival. If she can, all futures of economic, social and ecological collapse can be avoided. If not it is better from a long-term biocentric viewpoint that
the economic growth machine collapse now, bringing forth the necessary change, and offering hope for a planetary and human revival. I wish no harm to anyone, and
want desperately to avoid these prophesies foretold by ecological science. I speak for the Earth, for despite being the giver of life, her natural voice remains largely
unheard over the tumult of the end of being.
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