Sanctions and Trust

Does his own party trust him anymore on sanctions against Iran—or anything else?

In a letter to President Obama (formally to his Treasury Secretary, Timothy Geithner), two Senators, Robert Menendez (D, NJ), Chairman of the Senate Subcommittee on Western Hemisphere, Peace Corps, and Global Narcotics Affairs, and Mark Kirk (R, IL), Member of the Senate Committee on Appropriations, felt constrained to remind Obama and his administration of Congress’ intent when it passed (and Obama signed into law) the recent Menendez-Kirk Amendment to the Comprehensive Iran Sanction, Accountability, and Divestment Act of 2010 (CISAD).  This amendment authorized oil and financial sanctions against Iran should Iran insist on continuing on their course to obtaining nuclear weapons.

We understand that the administration is drafting rules to guide the implementation of the law and we hereby seek to convey the legislative intent underlying certain terms and phrases in the amendment and to ensure that the positive developments that have occurred as a result of the amendment are buttressed  by the administrative rules[.]

The Senators opened their letter with the above.  Their concern arises from Obama’s attempt to eviscerate the amendment to CISAD while it was being developed, even though it was an amendment that Obama had urged and to which Menendez and Kirk had agreed, and then after that agreement, Obama’s repudiation of it (interestingly, following that repudiation the amendment passed the Senate by a 100-0 vote).  Menendez has separately advised Obama that, as a result of Obama’s…behavior, “This certainly undermines your relationship with me for the future.”

The Senators, via their letter, laid out the specifics of some of their concerns.  These included the administration’s definition of the “significant reductions” other nations might claim as a means of continuing to do business with Iran’s Central Bank and to trade for Iranian oil while avoiding the US response mandated by CISAD—the cutting off of those nations’ banks from the US economy.  The strict definition was laid out in that underlying law; the Senators do not trust the administration to hew to that definition in its new implementing rules.  The Senators spelled it out in their letter:

To ascribe more variable terminology to the definition of “significantly reduced” would diminish the ability of countries to understand and comply with the amendment.  An unevenly applied interpretation would also call into question the seriousness of the sanctions policy and send mixed signals to both Iran and our allies.

Menendez and Kirk also are concerned that Obama will use the “national security” waiver in the sanctions law to completely weasel out of applying the sanctions: they fear he won’t apply any waiver on a case-by-case basis, as the amendment requires, attempting instead a blanket waiver that prevents any sanctions anywhere.

It was not our intent that the term “waive the imposition of sanctions under paragraph (1)” as meaning only one waiver is needed to waive the imposition of all sanctions.  In other words, with one report to Congress, the President could decide that not institution will be subject to sanctions….

They concluded,

We would welcome an opportunity to discuss these points with you prior to the publication of the final rule for the Menendez-Kirk amendment.

The Senate no longer trusts this President; his own party no longer trusts him.  Where is the basis for trust on the part of anyone else?  In any event, Obama’s rules are due out this week.  Maybe we’ll see the effect of the Senators’ letter.

Unions and Economic Well-Being

As Indiana moves toward becoming the 23rd Right to Work state—that is, a state in which its citizens no longer have to join a union, or pay union dues or part of union dues as a condition of finding work—the unions are weighing in on this risk to their awesome political and fiscal power.  Indeed, the unions are so opposed to this fundamental freedom of citizens to seek their own Happiness that they’re preparing to do everything they can to disrupt the National Football League’s Super Bowl, which this year is to be played in Indianapolis.  Jeff Combs, organizing director for Teamsters Local 135 in Indianapolis, assures us

You can tell them we’ll take the Super Bowl and shove it.

Brad Holloway, of the International Brotherhood of Electrical Workers Local 481, warned that electricians may engage in work slowdowns.

And teamsters gathered at Indiana’s statehouse last week to protest while wearing T-shirts with 46—symbolizing the 46th Super Bowl—crossed out on the back.  The unions are looking for a national stage for their protest, and they’re sure to find one with this tactic.  But is it a stage they want?  And in a state whose unemployment rate is 9%, a half-point worse than the terrible national average?  Investors.com offers some statistics from the National Institute for Labor Relations Research concerning the relative economic well-being of Right to Work states vs. union states.

It seems that Right to Work states had a better than 28% growth in real personal income vs. a shade under 14% growth in union states between 2000 and 2009.  Per capita income in the last year of the period, adjusted for states’ costs of living (so that income in California, for instance, could be compared directly with income in North Dakota), was $35,500 in Right to Work states vs. $33,400 in union states.  Right to Work states experienced a nearly 21% growth in real manufacturing GDP vs. just 6.5% in union states between 2000 and 2008.

And there’s this: Bureau of Labor Statistics data indicate that Right to Work states added 1.5 million private sector jobs in their states, a 3.7% increase, while union states lost 1.8 million jobs, a 2.3% decline, between 1999 and 2009.

Go for it, guys.