Politics
Column: The latest sign that Republicans are abandoning even their most deeply held principles
The changing of the conservative mind in recent years could hardly be captured more pithily than in the headline of a recent op-ed: “Why I believe in industrial policy — done right.” So opined Sen. Marco Rubio for the Washington Post and, at greater length, for National Affairs.
Note that I’m not addressing the conservative heart. Calling lawfully convicted violent criminals such as the Jan. 6 rioters “hostages” speaks more to the sad and profound changes of heart on much of the right.
What I’m referring to, rather, are the ideas, arguments and principles that once defined conservatism intellectually, among them rejection of the kind of government intervention in the economy that the Florida Republican now apparently favors.
Modern conservatism — the sort associated with Barry Goldwater, William F. Buckley, George Will, Thomas Sowell, Ronald Reagan and to some extent Rubio when he arrived in Washington — once regarded central economic planning and everything associated with it, including “industrial policy,” to be dangerous folly. Buckley’s 1955 mission statement for National Review declared: “Perhaps the most important and readily demonstrable lesson of history is that freedom goes hand in hand with a state of political decentralization, that remote government is irresponsible government.” He also noted that the “competitive price system is indispensable to liberty and material progress.”
This conviction can be traced back to Edmund Burke and Adam Smith, but it became a defining principle on the American right during the Cold War, against the backdrop of the rise of the Soviet Union as well as the domestic programs of Franklin Roosevelt’s New Deal and Lyndon Johnson’s Great Society.
There are many strands to the conservative argument against state efforts to shape the economy. One is the “knowledge problem,” a phrase adapted from Nobel Prize-winning economist Friedrich Hayek’s brilliant 1945 essay “The Use of Knowledge in Society.”
The knowledge problem, simply put, is that society, including the market, is too complex and too dynamic for government experts to reliably direct it from afar. In a free market, prices capture information that even the best data-gatherers can’t. The closer you are to the problem, the closer you are to the solution.
Public choice theory — what another Nobel laureate economist, James M. Buchanan, called “politics without romance” — adds another layer of reasons to distrust central planning. Government experts and regulators are often “captured” by the industries or activists most affected by their policies. Also, once politicians get involved, policy priorities multiply — extending to boosting employment, expanding diversity, favoring certain states or districts, protecting specific industries and so on — and the government’s stated goals become pretexts for other motives. “Crises” — pandemics, war, unemployment, environmental problems — become excuses to reward favored constituencies.
Take President Biden’s recent announcement that he would rebuild Baltimore’s collapsed Francis Scott Key Bridge both “as rapidly as humanly possible” and “with union labor and American steel.” Well, which is it — rapidly or with those restrictions?
That brings us to Rubio. Take it from a longtime columnist, you can’t always blame writers for the headlines mischievous editors put on our articles. But “Why I believe in industrial policy — done right” perfectly captures the senator’s argument and the trouble with the broader right-wing fad for central planning.
Oh, you want to do it right? Well, that changes everything!
I mean, if only someone had told Hayek and Buchanan that their objections could be answered by just “doing it right.”
The change in the conservative mind goes beyond industrial policy. It’s really about the use of state power generally. Too many Republicans no longer have any problem — moral or otherwise — with government imposing its will on society, so long as the “right” people are doing it “right.” The knowledge problem, they seem to believe, is confined to the left wing.
This is the core conceptual failing of Rubio’s argument, but there are others.
We used to say the left invented crises and distorted facts to justify expanding government. The same can now be said of the right. Rubio suggests that until very recently, America embraced “unfettered free trade.” This is not only untrue but, as Reason’s Eric Boehm suggested, a particularly strange assertion by a leading defender of Florida sugar subsidies.
Rubio also states that American manufacturing has suffered “decades of neglect” and that the “collapse of American manufacturing has … done incalculable harm to our nation’s social fabric.” What collapse? While it’s true that U.S. industrial employment has declined — mostly thanks to automation, not trade — industrial output has been increasing for a century.
I agree with Rubio that we should spend more on defense for national security purposes. But Rubio wants such spending to also mend the nation’s social fabric and serve as a jobs program.
I don’t share the senator’s confidence that Washington could accomplish all that if only people like him were in charge.
Politics
Trump budget request omits funds for L.A. fire relief, prompting criticism from senators
WASHINGTON — California’s two Democratic senators on Thursday criticized the Trump administration after it requested $87.6 billion from Congress to address some of the nation’s most “urgent needs” but omitted funding for victims of last year’s Los Angeles wildfires.
“Donald Trump’s desire to punish Los Angeles and the state of California for not voting for him, means once again that thousands of Angelinos are left watching this administration fight for anything but them, their businesses, and their communities,” Sens. Alex Padilla and Adam Schiff said in a joint statement.
“These fires did not discriminate based on party or political preference. Neither should this administration,” they added.
The omission is the latest strain in a yearlong standoff between California leaders and the Trump administration over federal disaster aid, and it comes after Los Angeles Mayor Karen Bass and Los Angeles County Supervisor Kathryn Barger met with President Trump at the Oval Office in April to request the funding.
At the meeting, Trump signaled his commitment to working with local officials to help with disaster recovery efforts. The officials asked for $16 billion that would be split between the city and county. The money would consist primarily of disbursements from the Federal Emergency Management Agency flagged for communities hit by the fires, part of a $33.9-billion wildfire relief funding request made by Gov. Gavin Newsom.
Two months later, those talks have yet to yield results sought by local leaders.
The budget request, submitted by the Office of Management and Budget on Wednesday, mostly seeks funding for the Pentagon to address costs related to the Iran war. It also includes $11.1 billion in economic assistance for American farmers, $1.4 billion to address the Ebola virus outbreak in Central Africa, $500 million to support “ongoing efforts to complete restorations and construction projects” across the nation’s capital and $1 billion to boost the pensions of workers at General Motors that were cut as a result of the automaker’s bankruptcy.
“I urge the Congress to take action on these important and urgent requests as soon as possible,” White House budget director Russell Vought wrote in a letter addressed to House Speaker Mike Johnson (R-La.).
Vought said the administration was open to discussing “additional relief for other urgent matters.” The White House did not immediately respond when asked why the budget request did not mention the Eaton and Palisades disaster relief funds.
State leaders, including Newsom, have repeatedly accused the Trump administration of stonewalling billions in wildfire aid. The governor visited Washington in December to meet with lawmakers, including three who serve on the Senate and House appropriations committees, to push for the funding.
The governor also attempted to meet with FEMA about the matter, but said his request was denied. Newsom, a political foe of Trump’s, would not say whether he had attempted to meet with Trump to talk about the recovery efforts.
Politics
Trump administration pledges $150M in aid, deploys Navy warships after deadly Venezuela earthquakes
Secretary Rubio details US aid to Venezuela after earthquakes
Secretary Rubio, in Manama, Bahrain, outlines the comprehensive U.S. government response to the devastating back-to-back earthquakes in Venezuela. He confirms immediate deployment of search and rescue teams, medical resources and humanitarian assistance, emphasizing the urgency to save lives. Rubio reiterates President Donald Trump’s commitment to supporting Venezuela and collaborating with international partners on recovery efforts and long-term stability.
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Following a catastrophic set of earthquakes that left at least 235 people dead in Venezuela, the Trump administration has activated a government-wide humanitarian response, pledging $150 million in aid and deploying U.S. Navy warships to assist in life-saving rescue operations.
The rapid mobilization Thursday comes after back-to-back magnitude 7.2 and 7.5 earthquakes rocked northern Venezuela roughly 120 miles west of Caracas Wednesday night.
The rare earthquake “doublet” injured more than 940 people and turned the state of La Guaira into a disaster zone, while forcing the closure of the damaged Simón Bolívar International Airport, according to Venezuela’s Health Ministry.
US RESCUE TEAMS TO DESCEND ON HARD-HIT CARIBBEAN AFTER CATASTROPHIC HURRICANE MELISSA’S IMPACT
Rescuers search for victims in a collapsed building following an earthquake in Caracas on June 24, 2026. (Manaure Quintero / AFP via Getty Images)
The U.S. Department of State announced on Thursday it is mobilizing $150 million in aid, which includes $50 million in new bilateral awards for relief partners on the ground — such as Samaritan’s Purse, Catholic Relief Services and World Vision — along with a $100 million contribution to a United Nations humanitarian pooled fund.
To spearhead efforts on the ground, the State Department has deployed a regional Disaster Assistance Response Team alongside two highly specialized urban search-and-rescue teams from fire departments in Fairfax County, Virginia, and Los Angeles County, California.
U.S. WARSHIPS TO PATROL INTERNATIONAL WATERS AROUND VENEZUELA AS TRUMP VOWS TO STOP CARTELS
Members of the County of Los Angeles Fire Department’s international urban search and rescue team (USA-2) prepare to leave for Venezuela, in Pacoima, Calif., Thursday. (Blake Fagan/AFP via Getty Images)
U.S. Southern Command (SOUTHCOM) said it is surging assigned U.S. military forces to the region, directing the USS Fort Lauderdale and the USS Billings to Venezuela to back the State Department-led operations.
The USS Fort Lauderdale will serve as a “floating command center” with a flight deck to support heavy-lift helicopters and a well deck to launch landing craft, according to SOUTHCOM.
Meanwhile, the agile USS Billings will provide critical support close to the shorelines to accelerate the disaster response missions.
U.S. SOUTHCOM said it has directed USS Fort Lauderdale (LPD 28) and USS Billings (LCS 15) to Venezuela to support State Department-led U.S. government relief operations in Venezuela. (@Southcom/X)
SOUTHCOM said it is also sending rotary-wing aircraft, which will provide critical life-saving airlift support, transporting U.S. government response personnel, search and rescue teams and partners during relief operations.
Amid the crisis, the State Department emphasized that the safety of U.S. citizens remains the administration’s highest priority.
“The Trump Administration has no higher priority than the safety and security of Americans. The Department of State is working tirelessly to provide consular assistance to U.S. citizens and their families in the affected areas,” officials wrote in a statement. “The United States remains steadfast in its commitment to helping Venezuela recover from this devastating disaster and will continue to explore additional ways to provide meaningful assistance during this critical time.”
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U.S. citizens in Venezuela are urged to enroll in the Smart Traveler Enrollment Program (STEP) and can contact the State Department 24/7 at 202-501-4444 for emergency assistance.
Family members in the U.S. seeking information on loved ones can call toll-free at 888-407-4747.
Politics
Controversial billionaire tax proposal will appear on November ballot
Proponents of a tax on California billionaires vowed on Thursday to move forward with their November ballot measure despite mounting opposition from many of the state’s most powerful political forces.
A labor union spent $31 million gathering signatures to qualify the measure for the ballot in an effort to offset federal healthcare funding cuts that will affect millions of California’s most vulnerable residents. A representative for the campaign supporting the ballot measure pushed back at opposition to the effort as self-entitled wealthy Californians and entrenched Sacramento interests.
“While a few morally bankrupt billionaires and their buddies in Sacramento want to see California’s hospitals close, and tax breaks for billionaires protected — I assure you, the vast majority of voters do not,” said Debru Carthan, a spokesperson for the Billionaire Tax Now Coalition, which is funded by the Service Employees International Union-United Healthcare Workers West, the sponsor of the proposal.
California Secretary of State Shirley Weber is expected to officially certify the measure to appear on the Nov. 3 ballot on Thursday evening.
Carthan said their effort has support in public opinion polls, and from lawmakers, unions, community organizations and volunteers across the state, “something the billionaires and their buddies will never have.” And she criticized Gov. Gavin Newsom for opposing the measure, saying that he is in “lock-step” with President Trump and billionaires.
“Gov. Newsom has no plan,” Carthan said during a Thursday evening news conference. “He has no plan to stop emergency rooms from closing. He has no plan for your healthcare costs. He has no plan to make sure that your family doesn’t have to drive further and wait longer to get medical care. Gov. Newsom has no plan to fix one of Trump’s deadliest domestic policy blunders.”
Rep. Ro Khanna (D-Fremont) also attacked the governor, though not by name.
“If you’re opposed to this tax, you’re on the side of trickle-down economics,” Khanna said. “You’re protecting the very, very rich, as opposed to standing up for the working class.”
Both Khanna and Newsom are considering running for president in 2028.
The Newsom administration did not respond to a request for comment Thursday evening.
A coalition of healthcare, education, public safety, housing, business and labor leaders opposed to the proposal warned that it would make the state’s notoriously unstable budget even more unpredictable.
“The dangerous wealth tax directly threatens vital funding for education and schools, healthcare and clinics, public safety, and infrastructure projects by making California’s revenue even more volatile,” the leaders of the California Medical Assn., the California Primary Care Assn. and the California School Boards Assn. said in a statement. “That’s why so many leaders – both Democrats and Republicans – are joining us and saying NO. We look forward to ensuring voters have the facts, know the stakes, and resoundingly reject this reckless experiment in November.”
Supporters of the one-time proposed 5% tax on the assets of the state’s wealthiest residents pitched the effort as a stop-gap measure to offset devastating federal healthcare funding cuts passed by the GOP-led Congress and signed by President Trump nearly one year ago. The federal legislation is expected to result in $100 billion in cuts that would affect California’s most vulnerable residents.
The proposed tax, which would be retroactive to billionaires who lived in the state as of Jan. 1, drew predictable opposition from the wealthy, notably Silicon Valley tech leaders.
But it notably divided liberals. While Sen. Bernie Sanders (I-Vt.) and Khanna supported the proposal, Newsom was among the Democrats who opposed it because of fears about the potential impact on the state’s volatile budget.
Despite being the fourth largest economy in the world — the home of Hollywood and Silicon Valley — California’s budget is extremely dependent on the state’s most prosperous residents.
Newsom and others who generally support increasing taxes on the wealthiest Americans also argued that the proposed billionaire tax in California was poorly crafted and that any such levies ought to be enacted nationally, because varying state policies would be ineffective.
Opponents also argued that the political priority in the 2026 midterm election should be squarely focused on efforts to make sure Democrats regain control of Congress to serve as a counter balance during the final two years of Trump’s presidency.
“It’s disappointing. This is a critical election where we need to concentrate on flipping the house and undoing the damage that was done” by Trump’s legislation that led to the healthcare funding cuts, said Jodi Hicks, chief executive and president of Planned Parenthood Affiliates of California. The wealth tax “is short term and doesn’t address what is the long-term problem. And I’m not even sure the policy is a viable solution. It’s so critical to be sending the right message — holding Congress accountable and how we need to find long-term solutions to make sure Californians have access to healthcare.”
Dave Regan, the president of SEIU-United Healthcare Workers West, lashed out at the leadership of Planned Parenthood as “out of touch” with their workers and their patients.
Rob Lapsley, co-chair of Californians Against Tax Increases and president of the California Business Roundtable, argued that the proposed wealth tax would ultimately affect every Californian.
“Strip away the spin, and this measure forces every California taxpayer, not just billionaires, to file a sworn declaration of their net worth with the Franchise Tax Board under penalty of perjury,” Lapsley said in a statement. “And it hands the Legislature the power to extend the wealth tax to all Californians and every kind of property, including home equity, retirement savings without ever returning to the voters – effectively gutting” voter-approved caps on property tax increases.
Supporters of the tax submitted nearly 1.6 million signatures in April to qualify the proposal for the ballot, roughly double the number required. However, support for the effort has grown increasingly shaky. Newsom’s team created a broad coalition of opponents, including healthcare and education activists, that undercut the foundational argument for the tax.
The union that crafted the proposal responded last week by proposing a legislative alternative that would create a 2% tax on billionaire’s assets. It was flatly refused by the Newsom administration. No deal was reached by the Thursday evening deadline for the union to withdraw the proposal from the November ballot.
Two efforts that were crafted to sink the proposed billionaire tax — dubbed poison pills — also qualified for the Nov. 3 ballot, according to the California Secretary of State’s office. One would bar new state taxes on personal property, while the other prohibits any new taxes being exempted from existing state spending rules and to be regularly audited. If the billionaire tax proposal is approved by voters but either of the other proposals receives more votes, the tax measure would be voided.
“We will not allow California’s most vulnerable patients to be used as political pawns,” said Francisco Silva, president and CEO of the California Primary Care Assn. “Our broad coalition will mount an aggressive campaign to educate voters, defeat this reckless initiative, and protect care for millions of patients.”
The proposed billionaire tax would apply to more than 200 Californians, some of whom proactively left the state or moved their companies out of California because of the proposal.
The prospect of the wealthy fleeing the state is among the reasons that prominent Democrats such as Newsom opposed it, given California’s budget being so reliant on the state’s most prosperous residents.
Sergey Brin, a co-founder of Google, is among the billionaires who have reportedly moved out of California because of the tax proposal. He donated at least $82 million to an organization that is funding efforts to invalidate the proposed billionaire tax.
Ballot measure proponents had a Thursday evening deadline to withdraw their proposals.
Other policy proposals that will appear on the Nov. 3 ballot include:
- Requiring government-issued voter identification to cast ballots in elections.
- Reforming the California Environmental Quality Act, once a third-rail in Democratic politics that has become increasingly scrutinized in the rebuilding in the aftermath of the Palisades and Eaton wildfires.
- Creating a $11.3-billion affordable housing bond.
Two notable proposals were pulled off the ballot after negotiations between the California Hospital Assn. and labor unions:
- An effort to limit healthcare executives’ compensation.
- A union proposal by the same union backing the billionaire tax that would have required many healthcare clinics to spend 90% of their revenue to serve low-income and underserved residents.
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