Perry gets Forbes endorsement

posted at 12:05 pm on October 24, 2011 by Ed Morrissey

Call this post “the good, the bad, and the ugly” for Rick Perry today to start off a new week for his campaign.  He clearly wanted to start with a boost, and had fiscal-conservative icon Steve Forbes on Fox News yesterday with an endorsement of the Texas governor, tied to the upcoming release of Perry’s economic recovery plan based on the Flat Tax that Forbes himself championed in the 1990s:

On Tuesday, Rick Perry will unveil his economic plan which includes measures to drastically reform the tax code and lower the corporate tax rate. It will also, he says, provide generous exemptions for “adults and for children.” Unlike Herman Cain’s 9-9-9 Plan, however, Perry’s plan will not include a sales tax. Forbes asserts that this small but significant difference, coupled with the governor’s “firm leadership,” are reasons why he is endorsing Perry’s candidacy.

Unfortunately, the Austin Statesman hit the newsstands yesterday before Forbes’ appearance with an attempt to dent Perry’s record of fiscal success in Texas, although they have to reach back to the 1990s for the story:

Over his eight years as Texas’ farmer-in-chief, Perry oversaw a loan guarantee program with so many defaults that the state had to stop guaranteeing bank loans to startups in agribusiness and eventually bailed out the program with taxpayer money.

The state auditor panned Perry’s claims of creating jobs and criticized Perry and his fellow board members at the Texas Agricultural Finance Authority for not following their own lending guidelines.

In some instances, the auditor said, Perry and the authority guaranteed loans to applicants with a negative net worth or too much debt. Citing growing debts, the auditor finally suggested that state officials consider dismantling the program.

Even as the first alarms were sounded, Perry defended the program, saying no taxpayer money was at risk, blaming others and claiming he had fixed it.

There is something vaguely familiar about the end result:

By 2009, her successor, Agriculture Commissioner Todd Staples, also a Republican, asked the Legislature to pay off the loan guarantees with a $14.7 million appropriation. The finance authority could no longer afford the $541,000 to cover the annual interest on the bad debts, almost all of which dated back to Perry’s tenure.

“It’s bad,” Staples told the American-Statesman at the time. “Unfortunately, taxpayers are on the hook for something that happened as long ago as 1987.”

In effect, Perry, as governor, signed his own government bailout when he approved the 2009 appropriations bill.

In the end, loans that Perry approved had a default rate of nearly 30%.  That overwhelmed the revenue generated by the good loans and created a sinkhole that taxpayers ended up filling in the end.  The amount of money lost was far less significant than the one loan to Solyndra by the federal government in 2009, and nothing in the Statesman’s report suggests that the guarantees were issued to benefit political cronies, as was the case with more than one of the green-tech subsidies issued by the Obama administration.  However, the loan guarantees ended up costing Texas taxpayers, for the similar purpose of government-subsidized job creation — only this time in agriculture rather than alternative energy.

On top of that, Perry seems to have forgotten a lesson learned in the 2010 gubernatorial elections.  The once-promising campaign of Perry’s Tea Party challenger, Deborah Medina, imploded when she flirted with 9/11 Trutherism.  In an interview with the usually soft-news outlet Parade Magazine, Perry sounds as if he wants to flirt with the Birthers this time around:

Governor, do you believe that President Barack Obama was born in the United States?
I have no reason to think otherwise.

That’s not a definitive, “Yes, I believe he”—
Well, I don’t have a definitive answer, because he’s never seen my birth certificate.

But you’ve seen his.
I don’t know. Have I?

You don’t believe what’s been released?
I don’t know. I had dinner with Donald Trump the other night.

And?
That came up.

And he said?
He doesn’t think it’s real.

And you said?
I don’t have any idea. It doesn’t matter. He’s the President of the United States. He’s elected. It’s a distractive issue.

Yikes.  Did Perry see just how well this issue worked out for Trump back in May?  It’s bad enough to have self-absorbed celebrity candidates offer this kind of nonsense during a Republican primary that should be focusing on Obama’s disastrous economic policies.  Now we’ll have to endure another round of conspiracy theories that make Obama look like a victim and Republicans look like nutcases.  If Perry couldn’t see that trouble coming and know to avoid it with a “Yes, he was born in Hawaii, and his economic policies were born in the offices of the SEIU,” then I’m pretty sure the Flat Tax and the Forbes endorsement isn’t going to help him much.

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Yeah, let the reanimation of the Perry campaign begin today.

Bill C on October 24, 2011 at 12:09 PM

Oh come on Ed – he did no such thing with the birther issue.

Time to log off of HA for awhile.

gophergirl on October 24, 2011 at 12:09 PM

One has been endorsing another.

Attention Rick Perry you are toast and so is your stupid state.

cozmo on October 24, 2011 at 12:11 PM

Good to see Perry winning the robot vote.

Pablo Honey on October 24, 2011 at 12:11 PM

Oh come on Ed – he did no such thing with the birther issue.

Time to log off of HA for awhile.

gophergirl on October 24, 2011 at 12:09 PM

Perry stated that the whole birther thing was a distraction from the big issues.
He’s correct.

annoyinglittletwerp on October 24, 2011 at 12:11 PM

Well, geez . . . . . I’ll have think on this a bit.

I do like Steve Forbes, but . . . . . .

listens2glenn on October 24, 2011 at 12:12 PM

Meanwhile, Romney locks up NH icon and three term gov. John Sununu (no blog). And Romney announces that he is touring GOP offices in Virginia with Gov McDonnell tomorrow. (Endorsement to come in a couple weeks)

But, but, but… Perry lands Steve Forbes!!! Whoopppeeee!

swamp_yankee on October 24, 2011 at 12:12 PM

Too little too late?

davidk on October 24, 2011 at 12:13 PM

I think Perry and Cain are my favorites right now. Nobody in the running is perfect though.

But one thing about Perry, if he campaigns on something, then he will push extremely hard for it when elected. His downside has always been the stuff that no one hears about. He let the North Texas Tolltag Authority take over too many new highways being built in the DFW metroplex. That could be that he is truly for private ownership or corporate cronyism, who knows. But most would agree that roads is one of the few things that the govt should be taking care of.

jeffn21 on October 24, 2011 at 12:13 PM

Considering Perry didn’t create this plan but rather took Forbes plan, I think we should have Forbes run for the nomination and Perry can endorse him.

csdeven on October 24, 2011 at 12:15 PM

csdeven on October 24, 2011 at 12:15 PM

I’m not one that normally throws RINO around-but Mitt’s the definition of one.

annoyinglittletwerp on October 24, 2011 at 12:16 PM

But, but, but… Perry lands Steve Forbes!!! Whoopppeeee!

swamp_yankee on October 24, 2011 at 12:12 PM

What happened was Forbes is trying to rekindle relevance in the political arena and got Perry to adopt his plan.

Forbes landed Perry.

csdeven on October 24, 2011 at 12:17 PM

What a horrible post. I expected to see a deliberative reading of the Forbes endorsement with something about the efficacy of a flat tax. Instead, its a post about the waxing and waning of the entire campaign, on items not exactly related to each other.

JonPrichard on October 24, 2011 at 12:17 PM

Perry sounds as if he wants to flirt with the Birthers this time around:

I have to believe the birth certificate is real, but you have to wonder why it took so long to release it and why his SSN shows that he was from CT. Or so I have heard.

I do believe he was trying a rope a dope until Trump went full court press on the issue. I bet Obama’s original plan was to release it next October and play the victim.

jeffn21 on October 24, 2011 at 12:17 PM

I’m not one that normally throws RINO around-but Mitt’s the definition of one.

annoyinglittletwerp on October 24, 2011 at 12:16 PM

You’ll get no argument from me.

csdeven on October 24, 2011 at 12:17 PM

At least Forbes didn’t endorse Mittens…

Seven Percent Solution on October 24, 2011 at 12:20 PM

We still have yet to see the BC, for the record. The last fake one they showed us was the worst fake of all the fakes.

Akzed on October 24, 2011 at 12:20 PM

Oh come on Ed – he did no such thing with the birther issue.

Time to log off of HA for awhile.

gophergirl on October 24, 2011 at 12:09 PM

Not on purpose, but he certainly did stick his foot in his mouth. If he isn’t sure if the certificate is legal, then to any law abiding citizen it d@mn well better matter.

He should have said that he believes that Obama fulfills all the requirements to be POTUS as required by the Constitution and left it at that.

csdeven on October 24, 2011 at 12:21 PM

Attention Rick Perry you are toast and so is your stupid state.

Now that is well thought out and eloquent statement.

What utopian state are you in?

Texican Ben on October 24, 2011 at 12:21 PM

I have to believe the birth certificate is real, but you have to wonder why it took so long to release it and why his SSN shows that he was from CT. Or so I have heard.

jeffn21 on October 24, 2011 at 12:17 PM

“Obama’s Social Security Numbers”
http://www.theobamafile.com/_eligibility/SocialSecurity.htm

davidk on October 24, 2011 at 12:23 PM

Any State Gov. is involved in loans like that. Other states are doing it so only way to win business into your state is to compete with the other states else lose any chance at business relocating.

jp on October 24, 2011 at 12:24 PM

Texican Ben on October 24, 2011 at 12:21 PM

Texas, you must pay attention before commenting. Or it could get you into trouble.

cozmo on October 24, 2011 at 12:25 PM

At least Rick is getting some airtime now. Herman had gotten it all for two weeks.

But why does Perry’s copy catting the Forbes 14 year old Flat Tax qualify Perry as a reformer? Perry never heard of it until he saw his campaign sinking from people disappointed in Perry’s personality they saw in debates.

Perry’s best bet is to push what he understands which is effectively outlawing attorney’s contingent fees.That is what his personal Texas caps on damages and loser pays laws have done in Texas.

jimw on October 24, 2011 at 12:26 PM

Now that is well thought out and eloquent statement.

What utopian state are you in?

Texican Ben on October 24, 2011 at 12:21 PM

Gosh darn it I just hate having a job and not paying state income tax and having right-to-carry and not having to join a union as a condition of employment.I forgot-I really hate living in the most conservative county in the nation.
Ya know-he’s right. We really should just toss our gear in the U-Haul and rush back to Ch-Town where it’s so much better than here.
////

annoyinglittletwerp on October 24, 2011 at 12:27 PM

Hey Cozmo, what’s the unemployment in your state of perfection that is obviously not Texas, asks the Texan. You want a free clue, Texans don’t take insults to our state lying down. Having fun in Taxachusetts, Yankee?

Sekhmet on October 24, 2011 at 12:33 PM

For Perry to say categorically that the birth certificate is real would be a lie.

For Ed Morrissey to say categorically that the birth certificate is real would be a lie.

Because neither has information that proves it.

Is it the new standard that you have to pretend you know the BC is real? “Yikes” right back at ya, Ed.

(FTR I believe that the BC is likely real, but I have no way of knowing for certain.)

Bat Chain Puller on October 24, 2011 at 12:34 PM

Texans don’t take insults to our state lying down. Having fun in Taxachusetts, Yankee?

Sekhmet on October 24, 2011 at 12:33 PM

Oh really, now. My state happens to have a pretty good economy and hasn’t had a bad downturn since the short one in the mid-80′s.

Texans are wimps. Have been since god created air conditioning.

cozmo on October 24, 2011 at 12:36 PM

Ed uses a Forbes post to pimp the “Perry is a birther” meme.

Shameless…

fossten on October 24, 2011 at 12:36 PM

Sekhmet on October 24, 2011 at 12:33 PM

I thought Cozmo was a Texan?

annoyinglittletwerp on October 24, 2011 at 12:37 PM

Rick Perry for Secretary of Agriculture!

Knucklehead on October 24, 2011 at 12:38 PM

And you said?
I don’t have any idea. It doesn’t matter. He’s the President of the United States. He’s elected. It’s a distractive issue.

It looks like someone is trying to take over the news cycle, that’s filled right with Herman Cain right now. You can’t change the topic in the news cycle without a controversial sound bite. That’s how the media works, and is easily manipulated -sensationalism. Morning Joe took the bait this morning.

Dr Evil on October 24, 2011 at 12:38 PM

annoyinglittletwerp on October 24, 2011 at 12:37 PM

SSssshhhhh…its quiet around here this morning and none of the decent Perry haters are around. I figured I would break in the newbies before they tangled with real nutballs.

cozmo on October 24, 2011 at 12:39 PM

cozmo on October 24, 2011 at 12:39 PM

My bad.
*slaps head*

annoyinglittletwerp on October 24, 2011 at 12:42 PM

SSssshhhhh…its quiet around here this morning and none of the decent Perry haters are around. I figured I would break in the newbies before they tangled with real nutballs.

cozmo on October 24, 2011 at 12:39 PM

Oh you are Bishing around ;)

Texans are wimps. Have been since god created air conditioning.

cozmo on October 24, 2011 at 12:36 PM

Heh

Dr Evil on October 24, 2011 at 12:45 PM

Cain first, Perry second. Romney never.

milemarker2020 on October 24, 2011 at 12:47 PM

Texans are wimps. Have been since god created air conditioning.

cozmo on October 24, 2011 at 12:36 PM

Speaking of wimps…I’m startin’ to need a hoodie…in SIXTY degree temps.
I’m from effing Chicago! 60 degrees is a heat wave. Last year I was going jacket-less in 40′s.
*sigh*

annoyinglittletwerp on October 24, 2011 at 12:49 PM

Our Ruling Class overlords are doing a great job for us.

Love Steve Forbes but Steve………you might want to notice what your buds are really more focused on of late (it’s not the Used Car Salesman from Occupied Mexico).

See the Rulers have already moved on to stuff like:

The Vatican wanting one global finance system.

Getting hold of more private residential property in the U.S. by having Fannie/Freddie own homes directly (by being the leinholder).

and of course helping setup a Caliphate in the Middle East.

http://www.telegraph.co.uk/news/worldnews/africaandindianocean/libya/8844819/Libyas-liberation-interim-ruler-unveils-more-radical-than-expected-plans-for-Islamic-law.html

I love Tax policy, and Steve has some great economic ideas but it’s a little too late for worrying about a Flat Tax Steve, we’re in the midst of a Global transformation. But I think you know that already.

PappyD61 on October 24, 2011 at 12:50 PM

Speaking of wimps…I’m startin’ to need a hoodie…in SIXTY degree temps.
I’m from effing Chicago! 60 degrees is a heat wave. Last year I was going jacket-less in 40′s.
*sigh*

annoyinglittletwerp on October 24, 2011 at 12:49 PM

Yep, told ya’ it would happen. Wifey wanted to on the heat the other night, and we aren’t as cold as y’all out there in nowheresville.

cozmo on October 24, 2011 at 12:51 PM

Testing a theory….ROCK!

cozmo on October 24, 2011 at 12:52 PM

Rush taking off the gloves, finally! A little behind Mark Levin. Sean
Hannity I give up on.

Rush loves George Will’s Romney-Dukakis comparison. Lol.

Marcus on October 24, 2011 at 12:53 PM

Good. Hopefully hotair can do a weekend post on the FairTAX vs the FlatTAX and the mechanisms on how to get from where we are now to full implementation.

Jason Coleman on October 24, 2011 at 12:54 PM

“It’s bad,” Staples told the American-Statesman at the time. “Unfortunately, taxpayers are on the hook for something that happened as long ago as 1987.”

Well isn’t that amazing? Especially since Perry didn’t become Ag Commish until 1991. Oh, wait! He defeated Ag Commissioner Jim Hightower, who makes Obama look like Mitt Romney! Ol’ Jim was a high spending fool as AC. Sounds like somebody wants Rick to get the rap for someone else besides himself.

cartooner on October 24, 2011 at 1:13 PM

Steve Forbes needs to be added to the list of people who should never be allowed to use Botox. He’s starting to look like the Klingon Ambassador from Star Trek V.

And since someone else said it, Steve Forbes should have run and Perry should have endorsed him.

fiatboomer on October 24, 2011 at 1:23 PM

OK, now apparently the word Kling*n sets off the filters. You, sir, are sh*tt*ng me.

fiatboomer on October 24, 2011 at 1:25 PM

“But you’ve seen his”
“I don’t know. Have I?”

Perry doesn’t know if he’s seen it or not, Oy.

whatcat on October 24, 2011 at 1:35 PM

Testing a theory….ROCK!

cozmo on October 24, 2011 at 12:52 PM

PAPER! Ha, I win!

As for the Perry thing…I hardly consider his answer to be very birther-ish. Would like to see his plan before I critique it as well.

Pattosensei on October 24, 2011 at 1:35 PM

xaax

milemarker2020 on October 24, 2011 at 1:38 PM

Just lost any respect I had for Steve Forbes.

redfoxbluestate on October 24, 2011 at 1:38 PM

Testing a theory….ROCK!

cozmo on October 24, 2011 at 12:52 PM

It’s a valid theory. I would expect Chudi to have dog whistle hearing – Chudi can hear crap no one else can hear from reading WaPo, spin, even Texas Democrats have stated is bogus.

Dog whistle hearing is a “special” trait.

Dr Evil on October 24, 2011 at 1:48 PM

I hate to be the bearer of disappointing news for Perry supporters, but Forbes’s endorsement is a tree falling in the forest. He endorsed Giuliani last time and look how well that turned out! It meant just about as much as… well, Perry’s endorsemetn of Giuliani!

athenanyc on October 24, 2011 at 2:06 PM

Dr Evil on October 24, 2011 at 1:48 PM

It was worth a try. Maybe the good doctor is delivering a baby. Or having another photo-op with Obama.

cozmo on October 24, 2011 at 2:15 PM

Yeah, let the reanimation of the Perry campaign begin today.
Bill C on October 24, 2011 at 12:09 PM

Weekend at Perry’s?

Count to 10 on October 24, 2011 at 2:25 PM

I hate to be the bearer of disappointing news for Perry supporters, but Forbes’s endorsement is a tree falling in the forest. He endorsed Giuliani last time and look how well that turned out! It meant just about as much as… well, Perry’s endorsemetn of Giuliani!
athenanyc on October 24, 2011 at 2:06 PM

Also, since both he and his flat-tax idea have already been rejected twice by Republican voters, this probably won’t be of much help in rescuing the Perry campaign.

whatcat on October 24, 2011 at 2:36 PM

Perry, first. Romney, second. Cain . . . only if his only opponent is Obama.

Voter from WA State on October 24, 2011 at 2:28 PM

Um, no thanks, I have done enough traveling and my son just got stationed to Washington. I’ll let him tell me. Though even Washington ought to be a step up from Afghanistan.

cozmo on October 24, 2011 at 2:40 PM

One has been endorsing another.

Attention Rick Perry you are toast and so is your stupid state.

cozmo on October 24, 2011 at 12:11 PM

+100%. In 5-10 years Texas will be where California is today and illegal aliens will be one of the primary factors that destroyed both states.

Texans are just too arrogant or interested in making a fast buck off illegals to realize the state has terminal cancer.

bw222 on October 24, 2011 at 2:42 PM

Rush taking off the gloves, finally! A little behind Mark Levin. Sean
Hannity I give up on.

Marcus on October 24, 2011 at 12:53 PM

How can you give up on your friend Sean Hannity? What’s the matter; don’t you like talking points?

bw222 on October 24, 2011 at 2:46 PM

bw222 on October 24, 2011 at 2:42 PM

I just knew that would get a rise out of you. Now run along and fluff Romney some more.

cozmo on October 24, 2011 at 2:48 PM

So any bad news regarding Birther BlagoPerrych have to be bury with one positive news?

Falz on October 24, 2011 at 3:54 PM

So this site is turning into the anti-Perry site in favor of Romney and Cain neither one of who can get out their conservative credentials put forward without having to keep explaining.

The hatred of Texas and the Governor by the east coast ‘liberal’ types and the Paulbots is showing big time on here. Paulbots have always been after Perry and not disappointed by seeing their comments today although looks like some establishment types have turned out as well.

Some of you might not like Steve Forbes but there are a lot of people who think he should have been President in 2000. Who else was he going to endorse in 2008 from that weak field. Romney is running again and now Cain who doesn’t even understand the roll of the President or the Constitution.

Some of the comments make me laugh as some of you keep up your pretense you are a conservative. Any conservative who thinks would not support flip floppers!

PhiKapMom on October 24, 2011 at 4:46 PM

PhiKapMom on October 24, 2011 at 4:46 PM

Oh fer cryin’ out loud! It isn’t anti-Perry any more than it is anti-Romney, or anti-Cain. Though, last time I checked, it was kind of anti-Paul. Much to spathi’s consternation.

cozmo on October 24, 2011 at 4:53 PM

Perry is weak, and Texas success has little to do with him. We kept our economic and political environment clean for decades, and it is more or less stable because of it.

V-rod on October 24, 2011 at 9:18 PM

Thus far I haven’t been swayed by any endorsement one way or the other. Not that it can’t happen but my givadamn button is yet to be pushed. I suspect all these endorsements just nibble at the margins, but who knows, that may be enough to nudge someone over the top. I’m still hovering around Romney – never! and everyone else – maybe.
Oh, and Ron Paul…only if I get hold of some bad LSD.

Extrafishy on October 25, 2011 at 7:25 AM