Duncan Hunter Interview – 1/21/2010: Mass. Miracle, Obama, Cheney, Jobs, McCain-Feingold & More!

This is part 10 of an ongoing series of conversations with former Congressman and conservative icon Duncan Hunter. Hunter has agreed to do a series of free wheeling interviews to ensure that the conservative point of view is given voice as we try to move the Republican Party and the country in a pro-American, pro-constitutional direction; a return to our roots, if you will. In addition to being involved in recruiting and fundraising for a number of hawkish, conservative congressional candidates, Hunter is attempting to re-invigorate the GOP and re-establish the Reagan, pro-military, small government ideals.

DH: I’m doing good. I’ve got my two little granddaughters here, they have now got the fire ready to go. They built a little house in the fire place. Now we’re going to light it.

{To his granddaughters: Ok, grab my hand dear. Ok c’mon. No, you light it right there sweetie. Put your hand over here. Grab Grandpa’s hand. Grab grandpa’s hand right there. Ok now we’re going to light it. That’s good}.

AJM: Well, I missed you last week. Of course we are on no particular schedule. But unfortunately I was skiing in Sun Valley, Idaho.

DH: Well that’s not bad. I’m going to do an event up there in Couer d’Alane at the end {throw that in sissy} at the end of February for the Republican Party for Vaughn Ward. He’s the Marine company commander now running for that congressional seat. I think it’s against Minnick.

AJM: Couer d’Alene is not that far either, right on the other side of the Washington border. Do you know when that’s going to be?

DH: It’s right at the end of February. You need to talk to the Republicans in Couer d’Alene, they’ll know the date.

DH: Well, I just called him and told him to try and get up there too. I think he’ll try to get up and make it.

AJM: Well I have no qualms with that whatsoever. I might have to hit a ski area or two on the way back.

DH: Well, we’re thinking about catching some steelhead, so we’re of the same mindset. {drop that sissy, just drop it. You can’t just hold on to it}

DH: Doing great. I’ve got two little granddaughters here and they helped grandpa make a fire.

AJM: Well, we always got to report the news to you, you know that (laughs). I’d like to start off with what your take is on the victory in Massachusetts for Ted Kennedy’s former seat….

DH: When He was thinking “now which Senate seat shall I give to the Republicans? I think I’ll give them Teddy Kennedy’s seat”.

AJM: Were you surprised? What do you think it portends for the upcoming elections?

DH: Well, I think the rule of thumb for politics is that truth is always stranger than fiction. So you have to always expect the unexpected. They have a 3 to 1 democrat versus republican registration, but a ton of independents, which was the key dynamic here.

But I think it shows that even folks from Massachusetts don’t like the idea of socialism! I think they harken back to lots of grim faced old WWII soldiers, Navy personnel, and Marines who fought in some of those horrendous battles, followed by lots of ongoing generations who fought in other tough places around the world to keep this country free. And the idea of giving away that freedom through Obama’s socialistic agenda was repugnant to most Americans, and I think, to a lot of liberals. I think there are a lot of liberals who in their hearts don’t believe in socialism. And they’ve watched the miracle of freedom and capitalism and I think that Americans don’t want to give that up. Even in Massachusetts they don’t want to give that up.

AJM: I think you might be right. Do you watch Glenn Beck’s show much, Congressman?

DH: I like Glenn Beck. He was great to me in the presidential race. I like him. He gave me an hour on his show.

AJM: One of the things he likes to mention is the difference between your typical liberal democrats and the ‘progressives’ – the true believers in socialism and Marxism – and he likes to differentiate between those two. What camp do you believe that the Obama folks are in? Are they just typical liberal democrats or are they…..

DH: The latter. I think Obama, because of his background….everything Obama has ever had in life came from government. And I think his experience in life has revolved around radicals and government. And that’s what he believes in. And in the end, people tend to revolve back, to go back to their roots.

And I think Obama is a machine politician. And I think that’s why he had no problems in getting tough with Ben Nelson, and threatening to take things away from him. I think the American people were upset when Nelson, as I understand, it was threatened that the Obama Administration would take away the Strategic Operations Center from Nebraska, which is a national security issue. And that was treated by the Democrat leadership and Obama as a piece of cheese. I think that, to some degree, reflected the character, or lack thereof, of the Administration.

AJM: Yeah. And Nelson, if I’m not mistaken, is one of the more ‘moderate’ Democrats. They had to do some arm twisting somehow, I guess.

DH: My point is, if you really believe in machine politics and machine government, in a leftwing government-heavy administration, that is a classic approach. To simply threaten or cajole people until you get what you want.

DH: I was in congress for 28 years. I never once called up the Whitehouse and told them I wanted something for a vote. Or that I would change my mind if I got something. You need to do what you think is right and let the chips fall where they may. If you are trying to work for a project in your district, you try to work for it on the merits. But the Chicago way is to bully and to intimidate and entreaty until you get your way. And I think that took a little bit of the shine off the Obama Administration’s claim to this “new direction” in American politics.

DH: In the end, they reverted back to what you do with a ward precinct captain if he doesn’t go along with you. Beat him up. (laughs) They treated Ben Nelson like an expanded version of a recalcitrant Chicago precinct captain.

AJM: That’s great. When you mentioned your record of not bending to the chicanery of whatever administration…

DH: Not necessarily chicanery, but you go to DC to vote for what you think is right for your country, and if you really believe in exercising democracy in its proper way, you vote for things on their merits.

AJM: I agree. But I remember back in 2004, I believe Newsweek wrote an article about you entitled: Duncan Hunter’s Arm Does Not Twist. And it was an article talking about Cheney trying to cajole you into voting for something or another – I can’t even remember what the subject matter was right now….

DH: I think that was the Intel Bill, that tried to take away the assets of Defense related intelligence and move it over into this new intelligence reform package where Department of Defense would be responsible for a lot of our intel apparatus, but wouldn’t have the budget that funds that apparatus. And would not be in control of all of our intelligence assets in a war theatre.

What that means is if you had a rivet joint aircraft or an intelligence aircraft working in the Iraq theatre and the combatant commander said “we need that piece of equipment over Falluja right now because the Marines are in a heavy firefight”, one of our intelligence agencies might control that equipment and they’d have to get the OK from Washington before they could use it to support American soldiers in battle. You can’t do that in a war.

So what I think we did there, I insisted on maintaining the chain of control of our assets in theatre. And I think that accrues to the benefit of our soldiers, not only in Iraq, but in Afghanistan as well.

Obviously, there are a lot of intelligence assets that are key to our war fighting in particular battles. {OK kids that’s enough. No, we have to save the rest of it for the next fire. You’ve got plenty.}

DH: They are using up all my fire starting material. They are not that good of Boy Scouts (laughs).

AJM: In that Newsweek piece, I think the author was amazed that you, at the height of Bush and Cheney’s popularity, that you were able to back them down.

DH: Well, I didn’t back them down. I simply refused to do what the Administration wanted. That was signing off on the intelligence bill. General Myers, former chairmen of the Joint Chiefs, has an excerpt about that in his book, Eyes on the Horizon. I just saw it last night, that incident.

AJM: Coincidence. Interesting. I’m kind of going off on a tangent here, but since we brought up Cheney, and he was the one trying to do some of the arm twisting…

DH: Except he wasn’t twisting arms in this sense: Cheney didn’t say “we are going to do this for you if you go along with it”. Cheney argued it on its merits.

AJM: But I just wanted to know what your relationship with Dick Cheney is. You’ve known him a long time. What do you think about him, and what do you think about his recent, pretty candid remarks against some of the Obama Administration’s policies?

DH: Yeah. I like Dick Cheney. I think he viewed his role as Vice President as focusing primarily on security issues, which I think is a key thing, especially when you are in an administration which is involved in two wars. So I think Cheney was the right man at the right time. And he’s a good friend, and I think a guy with a realistic and pragmatic view of the world.

And I think the Obama people are beginning to understand the real world to some degree now. Mr. Obama was very popular with the Europeans, but you noticed they haven’t sent a single additional soldier into the battle zones. The Germans still won’t leave the fort at night under their rules in Afghanistan and the French refuse to go where there is any fighting. Outside of that, they are prepared to be with us all the way.

DH: I think those were very appropriate. In fact, I think it actually helps the country and it may help the Obama Administration to some degree for this reason: The Obama Administration doesn’t have a weather vane, or a compass with respect to national security. Maybe Jim Jones, a former Marine, is going to provide some leadership there. But generally speaking, across the board they have very few people capable of focusing on security, with a background in that important area. So Cheney’s remarks on security issues are a little bit of a compass for the Obama Administration. They are forced to respond to his statements. That makes them think. That makes them consult with each other. It forces an analysis, and I think that’s good.

AJM: Yeah. One of the interesting things that I read about that Massachusetts victory for Mr. Brown, Scott Brown, was that one of the things he focused on quite heavily during his stump speeches was the fact that our tax dollars need to be going to fighting the terrorists as opposed to paying for their lawyers. And that resonated even in Massachusetts.

DH: Yeah. I think that makes some sense. You know, if anything, the fact that we had a number of the people from Guantanamo that we released, the military released, go back to the battleground and take up arms against us is evidence that we have been too lenient.

DH: Yeah, I think it’s been more than a dozen. A couple of them have been killed. Some have been captured.

AJM: OK, I’m going to switch gears on you. On some other breaking news of the day. That is the Supreme Court today, at least I think it was today, or last night, finally overturned the majority of McCain Feingold, the campaign finance reform. It was a 5-4 vote, nonetheless they gutted the whole idea that corporations and other groups couldn’t spend their money the way they saw fit for elections. I know you opposed it when it came out, and I wonder if you’d like to comment on it now?

DH: I haven’t seen the opinion. And McCain Feingold was pretty complicated. So I’d have to take a look at the written opinion by the Supreme Court. I haven’t had a chance to look at it yet. I at least have to have a chance to look at the summary of their opinion.

AJM: Ok. We’ll get you on that one next time. Regardless, it is at least being reported – and I haven’t read the opinion yet either – as having substantially overturned McCain Feingold. You did oppose it back in its day, I do know that.

DH: One of the many problems with McCain Feingold, aside from its legality, was using 527s, the leftwingers could absolutely inundate conservative candidates. During one election cycle, they spent in excess of 100 million against conservative candidates, and the Republican 527s were something like 20 million. It became a huge funnel for leftwing money to go after Republicans who themselves were somewhat hamstrung by spending limits to individuals. So you ended up with massively financed negative campaigns. And I’m thinking of Richard Pombo’s district that Pombo lost, was one in which I believe the lefty 527s went well over a million bucks against him. You’d have to look up the exact numbers to ascertain that.

AJM: Yeah. Aside from the practical aspects of kind of a unilateral disarmament on the right, it apparently is deemed now at least partially unconstitutional. I think it is always a good thing to review laws such as that, that deal with speech.

DH: Yeah, I think so. But anyway, I’d have to look at the written opinion by the Supreme Court to really have a good take on exactly what they’ve done with McCain-Feingold.

DH: The Democrats fought ferociously to keep 527s at full steam. Anything attempting to reform the 527s, which were literally allowing foreign entities to come in and pump lots of money into the US system.

DH: Yeah, and any attempt to reform that was beaten back by the Democrats. In fact those were the days of a Republican majority, the filibuster was threatened in the Senate if we even thought about attaching that to a major bill that was going through.

AJM: Yeah. I believe the first challenge to its constitutionality, before the court was reformed by George W Bush, with Alito and um – what’s his name ---

AJM: Yeah, Roberts – was a 5-4 decision the other way to sustain McCain Feingold. And Mr. Fred Thompson who was very involved in that legislation for many years, actually argued in front of the Supreme Court to keep it, to argue that it was good law. I don’t know if you remember that?

AJM: Well he did. I’m glad to see it gone. But we’ll let you get up to speed on the actual verbiage.

DH: Well you ought to also (laughs). It’s probably a 500 page opinion. So get ready, and get your reading glasses on!

AJM: (laughs) Yeah. All I know is that when I read McCain Feingold it was bad law. And anything that goes to the point of overturning it is fine with me.

AJM: OK. Another thing that happened in the news today, the jobless claims rose, quote-unquote,“unexpectedly”, to the highest level in several months. New jobless claims. Indicating even to the liberal press that this so-called recovery is a lot less than meets the eye.

What would you do, what would you recommend to the Republicans to campaign upon, or even to the Obama Administration to push, to actually turn this economy around? Right now it does not look like it is turning very fast, if at all.

DH: Retrieve at least a small part of the production lines that served this country’s consumers to our own country. Make a few things in America. We’ve moved our assembly lines off shore. The base of this economy is a middle class guy who can make enough money - and manufacturing has always been a high wage industry – who can make enough money to make that mortgage payment, to buy that car, and to do the other things that are part of the American Dream. We’ve allowed China to cheat on trade, along with a lot of other countries, with their Value Added Tax, which for practical purposes is a de facto tariff on American products and an illegal subsidy to foreign made products.

And we’ve allowed that dynamic to maintain in such a way that a large part of the American manufacturing base has gone off shore.

So the American that drives his Toyota to his house, watches his Sony television, puts on his Malaysian made clothes, then wonders why his kid doesn’t have a job, doesn’t have to look to far. And that’s’ why the housing was the last – you know ‘housing’ is manufacturing, writ large. In fact a house is referred to by national homebuilders – they call their houses “products”, they don’t call them homes. They are a big manufactured product which is still made mostly in this country and that’s why the housing boom carried the economy, the US economy, for as long as it did. It’s big manufacturing. One of the last segments of manufacturing that other countries haven’t learned to exploit. China hasn’t learned yet how to make a home in such a way that they can ship it over to the US and crane it onto a lot.

But the ripples, the economic ripples, that a healthy manufacturing, a healthy homebuilding industry sends to the economy of the community that it is sited in is evidence of how important manufacturing is to this country. And how much of it we let slip away. So until we make our own products, and retrieve some of that manufacturing base, the jobs that millions of Americans have depended on in the past to be able to afford that mortgage and afford those other things we provide for them, it’s a grim picture.

DH: And it’s been an Achilles heel for the Republican Party. But it seems the Democrats have drunk the ‘free trade’ kool-aid also. The Hunter-Ryan bill was a bill that would have punished China or at least given the President the ability to punish China for illegal devaluation of its currency. It was promised by the Democrat leadership to be front and center when they took control. After a couple of Wall Street fundraisers, it seems to have faded into oblivion.

It’s because there are a lot of companies, which are American companies, whose manufacturing is now sited in China, who appreciate the benefit of the subsidies that China’s currency devaluation and their VAT rebate gives to them.

AJM: And during the campaign, if I’m not mistaken – obviously it’s tough to browbeat other countries into doing something – you had solutions for what we could do on our side. One of them as I recall was the elimination of taxes on US manufacturers. You still believe in that? And what other things can we do internally to stimulate….

DH: Eliminating taxes on manufacturing would actually create substantially more tax receipts, more revenue for the American government because workers would be making more wages and pay withholding tax, and economies would be stimulated and jobs and communities would be roaring back.

What we ought to have with respect to trade, one thing I offered is what I call “mirror trade”. For example, China has a 17% Value Added Tax. That means if the telephone you’re holding right now and talking into cost $100 to make and its made in China, that company in China, instead of paying corporate taxes and income taxes and other business taxes, pays the government of China 17% Value Added Tax. A hundred dollar cost of that phone you are talking into includes $17 paid to the Chinese government. When that phone is taken down to the docks to be shipped to Washington State, to be sold in one of your stores, the Chinese government rebates $17. That is they give the tax money back to the exporter, because they are sending it to America. So they subsidize it to the tune of 17 bucks. So they now have only $83 in that 100 dollar phone. And if you make that same phone in Washington State, and export it to China, when that phone hits their docks, the Chinese government charges you a penalty of $17, 17 percent. The Washington State manufactured phone is now $117, while the one made in China and sent to you has now gone down to $83. So you’ve got a 34 point spread and the opening kickoff hasn’t even taken place yet in this international competition.

That Value Added Tax rebate was a loophole. It was described by one Senate Staff report, back in the old days when we agreed to the General Agreement on Tariffs and Trade, as one of the biggest blunders in American negotiating history! There was only a few countries in the world at that time that had VAT taxes. Now, 132 of them have VAT taxes and they are upwards of 12 to 20 percent. And that amounts to an illegal subsidy for foreign based manufacturing, and a penalty, a de facto tariff on every product the United States manufactures and sells abroad. That’s why even countries that have higher labor rates than the United States, like Germany, have a trade surplus over the US.

AJM. Yeah. And for a country like China, which has a much, much lower labor rate, that’s even more poison in the well.

DH: You’d think the country with the highest labor rate, ie the US vis a vis China, would have the tax advantage. But interestingly, China has the lower labor rate, but they also scratched out this tax advantage, the VAT, and they manipulate their currency. So they have a triple play going in their direction.

Along with that you have US governments which do not understand that it is important to be friendly to business! In some of these States, the policy seems to be the ‘the beatings will continue until moral improves’.

DH: So you have…I remember when one of our big companies left San Diego and went to Arizona and the Democrat Mayor of San Diego told them that she was going to sue them if they left. And they said “you’ve now just explained why we are leaving”, and they left.

DH: And so being friendly to business, having low taxes, and doing everything you can to allow business to come in and operate, not overlaying the business structure with a punitive legal and regulatory system that is predicated on a massive extraction of dollars; those things are important in maintaining an economy where the average guy, without a PHD, can get a job that allows him to make mortgage payments, send his kids to college, buy a car, and do the things that constitute the American Dream.

And we are pushing manufacturing offshore. With that we are pushing off the dreams of the next generation.

AJM: I hear you. Obviously, it would take some time to adjust the WTO or get out of the WTO, don’t you think just in taxes and regulations, as you just described, we can make a big dent in the exodus of manufacturing?

DH: Absolutely. And it’s been proiven over and over and over. As I recall, but you’d have to check the facts on this, Ireland at one point decided to attract manufacturing, and eased up on their tax code and did things that made them much more business friendly, and was able to attract and revitalize their manufacturing industries.

This in not a secret. But it is something that the nature of government is to extend its power through its programs and bureaucracies, with its deliverance of so-called benefits to people. And by extracting money from the producers to finance those benefits. And it is very difficult to make some of these salmon swim upstream. Because the current of big government is always to accumulate power and that is manifested in its attempts to increase revenues.

DH: Listen, at one time – this is legendary – but legend has it that at one time Great Britain had a 95% tax bracket for some people. And the key is that those people simply left the country. And legend further says that they never actually collected a single dime under the 95% tax bracket. So you can pluck the golden goose til there’s no feathers left.

And that was the whole point of the Laffer Curve; it was the idea that if you continue to beat the prisoner – business – at some point they are going to stop producing.

AJM: And you see that in the United States, where the low regulation – some of the southern states that have much lower regulation or regulatory burden compared to some of the more “enlightened” states.

DH: Yeah. That’s right. Well now listen, my little granddaughters – we’ve now built a fire. One of them has a shield and a sword, and the other one wants me to make Indian moccasins. I’m going to have to sign off here. (laughs)

AJM: This one’s quick. You have a Senate race, a Senate primary out there in California with Chuck DeVore versus Carly Fiorina. And I’m wondering, have you made an endorsement, and are you planning on making an endorsement??

DH: No. I haven’t made any endorsement. I haven’t even looked at the race. But we’ll do that and try to get up to speed on it. But, I haven’t yet, no. We got a long time before the California primary. {no, don’t draw on that}. I’ve got a granddaughter who is drawing on the wrong side of this leather.

DH: (laughing) He, this is great time. I’m in my elk room right now. We’ve got these big elk heads on the wall. And they’ve represented a lot of meat, let me tell you.

AJM: Hey, when you went up to Idaho, or was it Colorado, where you got your elk, did you bring that home?

DH: Oh yeah. Yeah. We brought home the meat and we brought home the horns. So the Hunters will continue to eat well this winter.

AJM: OK. We’ll let you go. Take care of those kids. Are you doing duty by yourself or is Lynne home too?

DH: OK, great. Right now I think I’m isolated with a couple of wild Indians.

DH: Great talking to you guys. Hope you are all doing well. Hope your families are doing well.

For those who missed the earlier interviews:

Duncan Hunter Interview 1-8-2010: GOP Primary Politics, JD Hayworth, Panty Bomber and FOOTBALL

http://www.freerepublic.com/focus/f-bloggers/2425011/posts

Duncan Hunter Interview - Dec. 18, 2009: On Christmas Blessings, the Gay Agenda, and Don Rumsfeld

http://www.freerepublic.com/focus/f-bloggers/2412548/posts

Duncan Hunter Interview - Dec 8, 2009: On Huckabee, the EPA, GOP Amnesty Hacks, and Harry Reid!!

http://www.freerepublic.com/focus/f-bloggers/2404824/posts

Duncan Hunter Interview 12-01-2009: Obama’s Weak Speech, SEALS, ClimateGate, and Shrinking Uncle Sam

http://www.freerepublic.com/focus/f-bloggers/2398503/posts

Duncan Hunter Interview 11-17-09: Terrorist Trials in NY, Amnesty, Sarah Palin and More!

http://www.freerepublic.com/focus/f-bloggers/2391044/posts

Duncan Hunter Interview 11-10-09: Gunny Pop, Afghanistan, Terrorism & Political Correctness!!

http://www.freerepublic.com/focus/f-bloggers/2384405/posts

Duncan Hunter – Nov. 4, 2009: On the 2009 Elections, Global Warming Alarmists, and Ronald Reagan!

http://www.freerepublic.com/focus/f-bloggers/2378862/posts

Duncan Hunter – October 27, 2009: On ObamaCare, RomneyCare and Americans!

http://www.freerepublic.com/focus/f-bloggers/2372627/posts

Duncan Hunter 10/9/09 Interview. Bomb Iran, confront China, and work to defeat Socialism!

http://www.freerepublic.com/focus/f-bloggers/2360735/posts

“DH: You’d think the country with the highest labor rate, ie the US vis a vis China, would have the tax advantage. But interestingly, China has the lower labor rate, but they also scratched out this tax advantage, the VAT, and they manipulate their currency. So they have a triple play going in their direction. “

All the “free market” FReepers will have this rammed down their throats. There IS no free trade. Hunter gets it.

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