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The Ethanol Juggernaut: Do Republicans Have the Will to Stop Big Government?

From the diaries by lexington_concord…

It’s always politically advantageous to support tax cuts.  However, it takes more intransigence and fortitude to oppose big government programs and special interest handouts.  It is even more arduous to oppose such programs when they are coupled with tax cuts as part of a backroom compromise.  Based upon Senator Jim Inhofe’s comments to NRO, it appears that there aren’t too many GOP Senators who are down for the struggle.  Concerning the green handouts hidden in H.R. 4853, Inhofe told National Review’s Robert Costa:

“94 percent of the provisions are meaningful. For people talking about wind and ethanol subsidies, you’re talking about 2 percent of the whole deal.”

Well, if Inhofe is signing on to this, then there won’t be too many others joining Jim DeMint.  If today’s cloture vote to proceed with debate is any indication of the final outcome, only 5 Republicans oppose the bill: Coburn, DeMint, Ensign, Sessions, and Voinovich.  (Although Voinovich opposes it on liberal grounds).  What concerns me more than Inhofe’s support for the tax deal is the way he expresses it.  I could respect the fact that some believe that this is the best political decision we could make, given the circumstances.  However, to dismiss the permanent welfare benefits, the special interest handouts, and the regressive ethanol “Hawkeye Handout” as “2 percent” is very disconcerting.

If Republicans lack the will to strike out at the heart of the dependency and welfare state after a stunning electoral victory, then when will they assert themselves?  The Democrats will always demagogue the issue by attaching big government programs to honey traps.  Does anyone really believe that the GOP will have the tenacity to fight the extension of the unemployment subsidies after they expire in 13 months from now?

What about the extension of the regressive, job killing, price hiking ethanol subsidies?  If the Republicans don’t have the courage to make an issue of it while gas prices are soaring over $3, do you really think that they will have the determination to oppose them when they expire again before the Iowa Caucus?  Will the ethanol issue still be considered a mere “2 percent” issue when gas prices reach $4 a gallon? Even the sacrosanct corn hustlers at POET have agreed to a lower subsidy rate for the extension period.  Couldn’t the GOP at least negotiate a better compromise on the ethanol subsidies?

Earlier today, Erick Erickson expressed his opposition to the tax deal, but noted that it is not “a hill to die on” for conservatives.  The more I contemplate this ethanol disaster, the more I think that it just might be the time to pull a “Harriet Myers” and make a stand.  The ethanol mandates, subsidies, and tariffs embody everything that is wrong with Democrat-run government.  It creates electoral constituencies, enriches special interests, distorts the free market, creates poverty, and endangers our national security and energy independence.  The Democrats are providing the Republicans with a huge opportunity to educate the public by shoving the left’s class warfare rhetoric right back at them.  We should be opposing this bill on the premise that it enriches powerful special interests on the backs of the “little guy”, by regressively raising the cost of food and energy, which are vital to anyone.

But what about the tax increases?  We all know that January 1st is not the deadline.  The Democrats would be under even greater pressure to pass the tax extensions once the tax hikes kick in and the Republicans seize control of the House.  On the other hand, the spending and handout provisions of the bill present us with an imminent threat.  If we pass them now, we will never have an opportunity to overturn them.  Let the Democrats get blamed for raising taxes on everybody for the purpose of keeping their regressive backdoor…..taxes!

Unfortunately, there is one fatal flaw with this strategy and line of reasoning.  Many prominent Republicans support the extension of the ethanol mandates even as a stand alone provision!  They don’t view it as a necessary evil at all.  At best, it is a mere “2 percent” inconvenience of a generally positive bill. So the moral clarity and political distinction between the two parties on this issue is out the window.   This is a teachable moment for anyone who fails to understand Jim DeMint’s principle that it is better to have 30 pure conservatives than 60 RINOs.

Even if it is already too late to fight the tax deal, we need to continue to make ethanol a campaign issue.  It should definitely be a ‘hill to die on’ in the presidential primary.  This issue will be a litmus test to see who is willing to fight for conservative principles even when part of the electorate (Iowa Caucus) is on the dole.  Every prospective candidate should take a stand on this issue.  Unfortunately, we already know where John Thune stands.

We always hear about the latest big government agenda item that the GOP is compelled to support because of imminent mitigating circumstances.  Their rhetoric would be more palpable if they ever showed the moxie to uproot a single consequential big government program.  Unfortunately, they always expect us to take things on credit.  Yes, we have all heard of John Boehner’s pledge to vote on weekly spending cuts.  But are they really going to pursue the substantial market distorting, special interest entitlements that are killing our economy, breaking the back of consumers, and infringing on our freedoms?  Will they touch the holy grails of the entitlement and welfare state?  For such issues there is no time like the present.  As Ronald Reagan said, “If not us, then who? And if not now, when?”

Cross-posted to Red Meat Conservative

COMMENTS

  • luciusacius

    Even Jabba the Gore has come to the realization that Ethanol is bad for the environment, wastes food and increases petroleum use, just by transporting it to blending facilities. How can any thinking person of any politiical party, not on the take, support this?

    • rockchicken

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      • bigmaude

        Please stop allowing this kind of post on RS. It cheapens us.

    • flamerock

      Ethanol is all that you say, but it also raises food prices in the macroeconomic sense. By artificially raising the price of corn through increased demand for corn to supply the ethanol hoax, it increases the cost of every other agricultural product which uses corn, notably meat and poultry.

      And, as you state, ethanol is a loser in the energy marketplace. A fuel that is 80% as efficient as gasoline and requires over $1.00/gallon in subsidies to be cost competitive has no business in the marketplace.

      From 2006: Ethanol Promises.

      • flamerock

        Go to http://www.caranddriver.com/features/06q3/ethanol_promises-tech_stuff

      • bigmaude

        Ever tried to run a chain saw or garden tiller that’s had ethanol in it, you can’t for any length of time. It’s just like sawdust in the bottom. WHAT A BUNCH OF DOPES! We burn our own food that feeds our cows and children and chickens. We think we are smarter than God. I know that’s prudish here.

  • conservativecurmudgeon

    Why, oh why, do the Democrats act as if the earth shifted ‘neath their feet on November 2nd, but the Republicans keep leading with their chin? I don’t get it… They ought to be standing four-square against every inch of lard the Democrats insist on festooning to every bill that comes along. I don’t care if it’s ethanol studies, or grants to purchase bibles for giraffes. STOP THE DAMNED SPENDING, for crying out loud. Get a frickin’ backbone, stand up straight and wait for the infantry to roll into town after the first of the year!

    Doesn’t the machinery of the Federal Government have any setting on the selector switch other than “Spend!!” or “Grind To a Halt”?

    • izoneguy

      Exactly

      If the new crop coming in – is as spineless as the crop we have

      Lord help us – not just Republicans – but all freedom loving Americans

    • speciallist

      agreed

      • fpete13527
        • itrytobenice
    • E Pluribus Unum

      Clearly you are not studying from the GOP “How to Urinate Away Every Victory in 10 Easy Steps” manual like you are supposed to.

      • uselogic

        Sad.. but funny.

  • After Seven

    Whether you realize it or not you are living through the 6 most expensive weeks in US History…and our GOP Senators are selling us all down the river with backroom deals, creative cloture votes and final votes, strategically made to preserve the status quo on both sides of the aisle in the Senate.

    1. Earmark Debacle.
    2, SB510 – Food Socialism Sails through Senate with heavy GOP support ant 6 figure donations to dozens of GOP Senators from Agribusiness. http://is.gd/iI7fI
    3. No Fat Kids Bill – sails through Senate with a helping hand from “Mike” McConnell. A 2012 disaster in the making. Inane Socialism + a major talking point for Obama in 2012…is this sort of thing sealing in the 5th and 6th liberals on SCOTUS? It’s usually never one thing but an accumulation of mistakes that leads to an Epic disaster. This bill is Exhibit 1.
    4. START is still alive thanks to Lugar Collins & Snowe.
    5 . The Nightmare Act – Bennett, Lugar, Collins, Snowe, Brown, McCain & Murkowski are all problems…with Lugar being a lock for the opposition.
    6. Tax Bill opposed by Limbaugh, Palin, Krathammer and many others.
    7. $1.1 Trillion Omnibus Bill loaded with the last of the earmarks

    So whats the big deal about ethanol? Are we surprised? a flyover country boondoggle in the making. Ethanol will fly thru this congress…subsidies won’t die until 112th Congress. EVERYTHING is being pushed through in the last great spending spree in US history…its not a question of IF damage will be inflicted, its only a question of how much damage will be inflicted. According to Moody’s, any damage is too much at this juncture.

    The current GOP Senate caucus can be counted on to obstruct all spending restraint….lowering the deficit just isn’t part of their agenda.

    • avgjo

      given enough attention to ethanol, s-510, this tax bill, etc. I have said before that Conservative media dropped the ball on s-510, but that’s just as true of these other issues. And I don’t say that in any way but the most helpfully critical. They just throw so much at us. But we have to prioritize. And we cannot afford to miss the slightest detail.

      I think we’ll have to use the House to not only control Obama, but even the RINOs. For instance, we should push the defunding of s-510. I could be wrong, but it seems that the House is our best venue to grab Big Brother by the cajones. They are up for election every two years, this one especially seems to be quite conservative and they control the purse strings. The goofs in the Senate could be given quite the wake up call if we send the alarm through our elected Representatives, no?

      Let’s not forget that defunding is not a weapon that can only target Democrats; RINOs can be beaten with it quite nicely. (Attn Big Sis: all this talk of ‘weapon’s and ‘target’ing is figurative. Just sayin’.)

    • edintexas

      We can only wish, whether you mean the ethanol subsidy, or subsidies in general. I have no hope that we will ever see the end of subsidies. Not in my lifetime.

  • wattchildress

    Now is the time to broaden the movement, hold leaders to their pledge to shun earmarks, and kill this budget-busting bill.

  • GreyCloak

    “Fly-over” America tends Republican and produces corn. It also produces politicians who have more weight in Congress (per population) than New England and the traditional South.

    Most of our Republicans are FIRST, politicians, and SECOND, representatives of The People. Same for the other side.

    These guys and gals are not going to give up subsidies for their constituents.

    Only when Americans of all political ilk write their Congress Critters and say “Don’t give me any more money, and don’t cut my taxes” will Congress respond.

    • itrytobenice

      As a lifetime resident of flyover country (MO) I’m going to pull this statistic out of a dark spot and say that less than 1% of us grow corn or having any financial interest in the production of ethanol.

      But there are some large producers who produce cold, hard cash for re-election bids and *they* are interested in ethanol. It is not a confluence of interest between voters and Congresscritters, it is a confluence of interest between money and Congresscritters.

      Same song, 2nd verse, same as the first.

  • chamberD

    in Denmark, I mean DC, that every single hill is one on which to die.

    It’s obvious that the establishment aims only token concessions toTea Party principles in order to keep the natives docile while the grand plan for remaking America continues a pace.

    Something’s gotta give, and that something given will be the boot to each and every one of you Republican Senators and Congressmen who do not do an abrupt about face followed by persistent ACTION to OPPOSE statism; oppose the ruling class of which you have now wedded yourselves or face the consequences.

    You have been warned.

    • bigmaude

      You know the rotten one? Remember what the stench was? My uncle killed my father the king and is now sleeping with my mother and I have to expose it, and stay alive! Sounds like DC to me ! CORRUPTION can’t be stopped!
      Hamlet is killed by his best friend, mommy dies and the lovely Ophelia kills herself. Wow, sounds like DC to me!

      • chamberD

        . . . will make a strong impression and minimize the worst of it. And our keeping the feet singed will let them know we mean business.

        We will be the police; law enforcement knows it cannot stop crime, but without its efforts all hell would break loose. We’ve been too lax, pre-occupied, and some of us even seeking out our share of the take.

        THAT MUST STOP.

  • howardbeale
  • http://reaganiterepublicanresistance.blogspot.com/ reaganiterepublicanresistance

    Krisit Noem defended the Ethanol subsidies as “stimulus”!

    She may be good-looking, but it didn’t take long for them to co-opt that one… she’s sure no Reaganite

    • Scope

      She is her own special interest spokesperson.

      • Jim Tomasik

        ….

    • icesweeper

      First, remember Kristi is not voting on this, she is still congresswoman”elect”. Anyway, she is correct that the ethanol subsidies do and will promote jobs in her state. There aren’t alot of other industries in SD, even the “shovel ready” jobs promised by BHO would not be reall prevalent in SD. So, when it comes to peoples propensity to get their “fair share”, it’s one of the few things rural states like SD can take advantage of. It does tend to flow down to many retired, ‘middle class’ people. So it is politically popular in SD.

      SD is also headquarters for Poet/Broin, which employs hundreds and are politically active. The way it is.

      The solution is to cut ALL govt spending. ALL of it. All states must share evenly and all must share. In a perfect world you could start with ethanol and keep going, but that may not be politically what happens. But all spending HAS to be cut. It is our job to keep reminding them of this.

  • avgjo

    Apparently, the spending in there is what is doing this.

    Hear that Noem? Yeah, Moody’s cutting our rating should be REAL stimulative.

    But, hey, just ask that statesman Grassley, it’s okay, because 71 wrongs make a right!

    (I’ll give the link to the story if it’s okay with admin.)

    • wattchildress

      http://www.bloomberg.com/news/2010-12-13/moody-s-says-obama-tax-deal-is-negative-for-u-s-credit-rating.html

      • earlgrey
  • popster

    Why can’t a bill stand on its own two feet? If it has to be attached to another something is definitely wrong with it.
    Obviously they didn’t get the message!

  • thibodaux

    Where is my pitch fork and my torch. It’s time to burn the town down, politically of course!
    McCain, this is not what the people wanted but I’m voting for it anyway??? WTF over!
    I know you had to do it Sarah but why did ya stand behind a RINO.?
    I’ve had it, I’ve had it, I’ve had it, 1 of these days Alice, 1 of these days!

  • ss396

    Dear Republicans:

    There will NEVER be a convenient, easy, or expeditious time to cut spending. It takes a backbone to deal with this fact. Please grow one.

  • freemanja1991

    I’m a student at one of the Biggest & Best Ag Colleges in the country, Iowa State. Many of my friends grew up on farms, and tell me that you cannot make money off corn without the subsidy. Also many states should not receive any subsidies due to Agricultural & Environmental principles. SD, ND, NE, KS, are too far west and all irrigate too much for corn, and corn takes too much water thus drying up the Ogalala Aquifer. In Iowa we don’t irrigate we tile (the reverse we can get too wet). Farming is very hard to do, I would just like to know what all of you propose to do if prices drop too low for farmers to make a living, and we have a famine, because no one is farming? There are no good solutions to this problem. Some of this might be easier if some of it was not traded on commodities markets. And I honestly don’t support this form of ethanol, Cellulose ethanol (made from the parts that isn’t eaten) and other methods are more promising. Just remember it is all a mess.

    • icesweeper

      Hello Freemanja,

      Congratulations on an excellent school, (ISU Engineering grad, late 80′s) However, your farm friends are not being truly honest with you. I farm full time in Iowa so I understand the economics very well. Farmers can and will remain profitable whether or not ethanol subsidies remain. This fall the CARD group (Center for Ag & Rural Development @ ISU) did a study, and projected if all the subsidies were removed the price of corn would drop something like $0.75 /bushel. I don’t know exact number because it was released during harvest, and I was busy! That may seem like a lot, but in perspective the price has risen around $1.50 since June due to pure supply and demand action. The price has risen from around $2 in summer 2006 to $5.50 now, exclusively due to ethanol expansion. In the last 10 years, feed usage is down 8%, exports are up 2%, ethanol is up 350% or so.

      I contend the business in farming remains the same regardless of crop prices. You own machinery, buy inputs and sell outputs, the main input being the land itself. Any profit remaining is typically used to expand by renting or buying ground, so as proifts from farming rise and fall, the land costs rise and fall. Since 2000 land has increased by about 400% in value. Thus the true benefit of increased prices goes to the landowners, who may or may not be the ones actually farming. They do tend to be much older, and will vote to protect the value of thier assets. Just the way it is.

      So if we cut ethanol, prices could drop, and so will land. A $1 bushel drop in corn will capitalize out to about a $3000 drop per acre in land value. Seems like a lot, but it has risen about $5000-5500 since 2006 around here.

      Someone will farm. The famine talk is simply fear mongering. Actually, the ones would be left standing would be the more fiscally conservative ones, who have not done aggressive expansion lately. You would also have alot more 500-1000 acre farmers and fewer 5000 acre ones around. This would be good for rural communities, schools, etc.

      Cellulosic, especially in the midwest is a pipe dream today. The raw material they are proposing (corn husks and cobs) is nowhere near as energy dense as corn, so it will be INCREDIBLY difficult to transport and store. The most likely business model will be small plants spread out every 30 miles or so. May be great for small communities, but difficult to capture economies of scale compared to a petroleum refinery. It will be years before celulosic can provide even 1% of our net transportation energy needs. Grain ethanol has taken 40 years to get to around 10% of only our transportation needs and there was harvest, storage and transportation infrasturcture in place already.

      The ethanol industry should have the backbone and fortitude to go it alone, without the blenders credit and tariffs. Unfortunately, I don’t see that happening.

      • Jim Tomasik

        Really? In comparison to what?

        • Jim Tomasik

  • wolfeman

    I don’t see how the senate republicans can ever be taken seriously if they ever do try to end the subsidies. They’re pretty much carving their position in stone with this vote. We all may as well accept the fact that the senate republicans are pretty much just as bad as the democrats.

  • bus2dc

    dhorowitz3, you are exactly right:

    “The Democrats are providing the Republicans with a huge opportunity to educate the public by shoving the left?s class warfare rhetoric right back at them.”

    I don’t think Republicans even possess the ability to “shove” – which is really a bad, bad thing when your survival’s at stake. Since the bill is not reducing the debt, only increasing it; giving a temporary top tax-cut extension which will not increase REAL big-business hiring or buying; sticking a massive death-tax back on even smaller-business (both income AND a land-grab for the govt); extended no-work benefits for another 13 months (are you KIDDING ME?) to even further depress any hiring; did not cut any previous “special credits” AND is hanging new balls on the tree as we speak — then WHAT exactly is the positive here?

    I’ll tell you what the NEGATIVE is: the GOP will be blamed now for pulling for pork again, increasing the deficit, and gunning for the rich – all while the Dems get away with stealing our very lives and liberty out from under us. Perception IS reality! Since the GOP cannot seem to find a LEADER, can we please find a DECENT STRATEGIST? If I’m going to keep spending my childrens’ future away, I’d like to at least get SOMETHING for my money.

  • Death_of_the_Donkey

    because the Republicans have already shown themselves as unwilling/unable to actually cut spending (if you can’t cut ethanol subsidies, what can they cut). Without significant spending cuts, this tax extension is going to bankrupt us (well in a European sense, we will have high interest rates, a falling dollar, and inflation) all because special interest groups control the process.

    I don’t find this all that unexpected either, as our big revolution this November was funded by tons of special interest money that knew exactly what it was buying.

    • itrytobenice

      And this is exactly why the rates need to go up – because the Republicans have already shown themselves as unwilling/unable to actually cut spending

      This is wrong on so many levels I don’t even know where to start. *This* is exactly why we need to get the public educated and involved in our elections. These SOBs need to be thrown from the dome, NOT given more of my money to pound down their favorite contributor’s rat hole.

      The ethanol subsidies are more taxpayer bribes for their agri-campaign contributors. And your solution is to raise taxes so they can continue to blow all this money and more?!?!? Take hold of your ears and yank your head out. As Margaret Thatcher said, “The problem with socialism is that someday you run out of other people’s money.” (probably paraphrased)

      They *don’t* deserve any more taxes. They don’t deserve what they are getting now. They aren’t trustworthy, wise or sensible. They are corrupt and evil. I will personally tar them and feather them and run them out of town on a rail before I’ll work like a slave for these [redacteds]!!

      • Death_of_the_Donkey

        my solution isn’t to “give them more money”, but to start to pay for what they are spending. There is a big difference. If we continue to cut taxes while not slowing/cutting spending, then we as a nation are going to go bankrupt (so to speak), What we need is a spending plan that involves deep cuts all around Including defense) and major reforms to entitlement programs (to help with our demographic problem of the future), but until we see that, I am afraid that continued emphasis on tax cuts is only going to bankrupt us and cost far more than the tax hikes would.

        We have essentially been cheating since 1983 with our revenue-expenditures by relying on the huge SS tax increase of that year to cover budget holes and now that the boomers are retiring and collecting SS, that pot of “found money” is no longer around and our problems are coming to the fore.

        • itrytobenice

          my solution isn?t to ?give them more money?, but to start to pay for what they are spending

          How do you propose we pay for what they are spending without giving them more money? We are already paying taxes. Many of us believe we are paying *plenty* of taxes and we believe they are wasting that *plus* running up the deficit. And your solution is to give them more so we can pay for their deficit? And you don’t think that’s giving them more money to pound down a rat hole?

          You don’t even make sense.

          The only thing you got right was that we need deep budget cuts and major reforms to entitlement programs (especially the part of that title that says ‘entitlement!’) but you are dead wrong that increasing our tax burden is going to accomplish anything but to destroy our economy. We don’t work for Uncle Sugar. We work so we can have some money. If Uncle Sugar is taking it and distributing it to his cronies (which he is) then we’re not going to work. And they can run it up their @$$e$ if they think they can make us work for them.

          • Death_of_the_Donkey

            If the R’s aren’t serious about cutting spending across the board (and so far it doesn’t look like they are), then what is coming down the pike is going to be a lot worse than the expiration of the Bush tax cuts. High interest rates and inflation will do more to kill the economy than letting those tax rates expire. The problem is that the corps funded this election and now they want their payback and it looks like they are gonna get it.

          • JSobieski

            We will soon know how serious the R’s are about cutting spending. I think Ryan is pretty serious, but Ryan has been out on limbs before.

            I agree with you on what happens if there aren’t prompt spending cuts of a substantial magnitude.

            Why did you have to add that bought and paid for crap at the end? Its not like Republicans are in favor of lower taxes because of corporate donations. You have it backwards—Republicans attrack corporate donations because they favor lower taxes.

          • Death_of_the_Donkey

            I agree that corps support R’s for low taxes, but they also LOVE subsidies and special treatment and it sure is starting to look like that is what they were trying to buy with the election. And, I would like to point out that the corporate tax rate wasn’t in the Bush cuts and thus the big Corp donors aren’t actually getting lower taxes from this, they are getting subsidies and the continuation of ridiculous deregulation like CFMA and FSMA.

          • satchman3

            I feel like the disconnect between taxes and spending makes it very difficult to achieve fiscal sanity in government. We can talk about educating the populace but if we could connect taxes with spending it would be a lot easier to throw the bums out.

  • gunsrus

    Exactly what is the strategic posture you want republicans to stand on that removes our dependence on oil? Alcohol has long been an alternative fuel which the government has strangled the production of. If your furnace burned it you could throw away the CO2 detector and the chimney (poor Santa).

    • itrytobenice

      Your masters have got to start sending us a better quality of trolls. This is embarrassing for your side of the great divide.

      I mean, they’ll do it. Your trip to the ban wagon is coming, but their efforts deserved better bait than you.

      • acat

        Alcohol is a magnet for water, makes it very hard to store or pipe. As any science teacher ought to have pointed out, water doesn’t burn well .. not to mention causing rust and, oh yeah, “global warming gasses”. (water vapor)

        Burning alcohol still sucks oxygen out of the air, and the products of combustion on the scale needed to heat a house would not be healthy to breathe… you still need to vent it to the outside.

        Oh, and it’s a carbon monoxide (CO) detector, not carbon dioxide (CO2) .. otherwise it’d go off every time you breathe on it.

        Any way you slice it, it’s still – since cellulose alcohol is still hovering “just a few years away” – using food as fuel.. and that’s okay if food is plentiful, but there aren’t massive government stockpiles of grain around anymore … we’re one or two bad harvests away from serious pain in the cereal aisle.

        Final point – crude oil is a remarkably useful thing – as a feedstock to the chemical industry. Even if we stop burning it as gasoline, we’ll still be using it to make plastics for quite a while.

        You’re right, itrytobenice .. this one isn’t really cutting it.

        Mew

  • gunslingr45

    See a third party coming down the road and that spells trouble.

    “The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.”
    Thomas Jefferson

  • miroco

    I have been wrong for decades, “Let’s get a majority and our idea—”
    dumb- dumb- dumb. Repubs are a more insidious enemy than the commie P—S, I talk to someone like Kaye Bailey “we did this program because” that’s all we need to hear. It’s government, it will cost. it will fail. WE need Tea Party PLUS, even my heroes like Dement and Flake will be thought of as lefties