Sunday, September 19, 2010

Some points from a Facebook discussion from today

http://www.facebook.com/album.php?aid=35632&id=155382737812809&ref=mf#!/photo.php?pid=417251&id=155382737812809&ref=fbx_album

My inflammatory comment on that chart was this:

So it turns out the National Debt goes down with Democractic presidents in office (cleaning up the mess created by the partying with public money of the GOP) and the National Debt goes UP with GOP presidents in office (giving tax dollars to the rich and starting wars to put money in the pockets of Defense contractors and sacrificing the lives of the poor who inevitably make up a large chunk of enlisted personnel). Gee whiz?!?! So if you want Fiscal Responsibility, who would you vote for?


This drew a lot of comments.

Responder 1) Hmmmm...last time I checked it was the Congress, specifically the House, that set budgets, an not the President. When did I miss the memo that changed that clause in the Constitution?

My response: The President has nothing to do with fiscal or economic policy? Ok, then I never want to hear you ever, ever, ever, give credit or blame to the President for the economy or taxation. Give me a break. (Yes, I am familiar with Article I of the Constitution. Just because the President doesn't write, introduce, and vote on the bill becoming a law in Congress (yes, starting in the House for budgetary matters) does not mean he/she takes no part.)

Responder 2) Biased image is biased. Try this one - Where it not only shows the amount spent, but charts it against our GDP.

http://upload.wikimedia.org/wikipedia/en/thumb/7/78/US_Debt_Trend.svg/463px-US_Debt_Trend.svg.png

My response: I'll give you Ike from 1952-1960; otherwise, 1961-1968 (JFK & LBJ) decrease; 1968-1981 (nixon, ford, carter) slight decrease; 1981-1992 (Saint Reagan & Bush I) Set us back to 1956; 1992-2000 (Clinton) Sharp Decrease; 2000-2008 (Bush II) Increase;

So yeah, thanks. Your chart proves the same point!

Responder 2) Let's bring a little Presbo into the mix - I'm guessing the chart you posted wasn't tall enough to fit his figures....

http://www.heritage.org/Research/Reports/2009/03/The-Obama-Budget-Spending-Taxes-and-Doubling-the-National-Debt

My response: I'm guessing you're not going to consider the last 18 months (a huge amount of time as opposed to considering the last 60 years) as spending money to dig out of the mess caused by the previous administration.

I do not dispute that a large am
ount of spending and a huge increase in the national debt has occurred in the last 18 months. I do dispute placing blame for that on the current administration. I believe in Keynesian economics and that public spending can fill the void caused by a lack of private spending to prevent further erosions in GDP. While preventing declines is never as easy to accept, it certainly happens. I believe we would have seen 16-20% Unemployment and continuing GDP losses without governmental intervention.

If you want to avoid bias (and biased charts), try to avoid the Heritage Foundation, a conservative think tank with a longstanding agenda to ensure tax breaks for the rich.

Additional response from me: Also, that article was published in March, 2009, when Obama had been in office for less than 60 days. I'm sure it was able to be a complete and accurate analysis of everything that could be forecasted after 60 days. Oh wait, it claims to forecast things for a 10-year window while simultaneously slamming Obama for using 10-year forecasts. Whatever.

I think it's safe to say things in the 16 months since that article have changed a bit. I think it's also safe to say that things will change in the next few years as well.

Responder 2) At his point I'm just looking forward to change in November.

My additional response: There's nothing quite like seeing so many Middle Class people work sooooo hard to ensure tax cuts for the Rich. I think that's the GOP slogan.

If you won't work in your own self-interest, work in the interest of those less fortunate than yo
u. Working in the interest of those more fortunate than you is just plain stupid. My goodness, at least vote for someone who pretends to be in support of your interests. These Tea Party people and GOP don't even pretend to be out to help you.

One last point on the debt topic. The vast majority of the debt increases is due to the Baby Boomers leaving the work force and draining the social security and medicare funds. Without changes to those programs, nothing will change in the general debt situation.

Responder 2) Less fortunate? More fortunate? What has luck got to do with it?

I'm offended that you seem to think that I'm better off than some welfare mom in a trailer park because I'm lucky and she's not. I'm in the position I'm in because of the ch
oices I made, and ditto for her. I chose to work hard, strive for promotion, and use my money wisely. Ms Hypothetical is in hers position because she chose to have a child out of wedlock, chose not to work, and chose to spend her govt provided income on beer and smokes and lottery tikets.

I'm not here to worry about the poor. I'm here to worry about limiting the amount of money the federal government takes from me at gunpoint to redistribute to all the deadbeats living off the government teats.

My Response: Did you have any choice over being born in a stable middle class household in a nice suburb with good health and gifted level intelligence? If you had screwed that up, I would hold it against you.

Also, I wasn't counting fortunate in terms
of luck, I meant it in terms of results.

Even if you don't wish to go there, at least look out for YOURSELF.

In addition, your attitude seems to suggest that you feel all taxes are bad and that all governmental spending is bad. Good luck building a society of more than one person without some sort of cooperative actions. This, by the way, is why Ayn Rand's Objectivism and most forms of Libertarianism are fundamentally flawed. They only work on paper with perfect people. In a society of robots, it just might work as long as no robot ever varied in performance.

If you come down off of that high horse, you might see that we are humans, capable of large variances in performance and large variances in results from the same efforts. I suggest to you that not everyone has a low economic status due to their failings and of course that not everyone with a high economic status has "achieved it" through their own merit.

Sorry, it's not that simple, and you are definitely smart enough to know better than that.

Responder 2) Taxes as a whole I have no problem with. Although, Id prefer a consumption tax over an income tax. My tax money being used as handouts to the welfare state to buy votes is a big problem in my eyes.

And yes, there are exceptions to every ru
le.

Sorry if I come across as cranky and disjointed. Dr put me on new meds - got me all kinds of testy and light-headed. ;)

I'm working on the political defition I always hear - anyone who makes over $250k is "rich".

Which includes... what... 80% of small business owners? Who aren't spending money or expanding or hiring because they are looking ahead to how b
adly the upcoming healthcare and economic reform legislation is going to screw them.

My response: I'm talking dollars. I'm of the opinion that many people are lazy, regardless of income and net worth, and that many people are hard-working, regardless of income and net worth.

$250k/year actually targets just 3% of the population.

P
lease let me know where you get the 80% of business owners figure. If this were true, I would jump into business ownership ASAP. The reality is that most business owners report an Adjusted Gross Income (for themselves because we are talking about individuals) far less than $250k/year. This is for many reasons. 1) Most businesses just don't make that much money. 2) Those that do hire accountants to reduce their AGI so they can pay lower taxes. This is made possible because the government actively uses tax policy to assist small business owners. In fact, Congress passes a bill last week to put $50 Billion to small business owners to encourage job growth. 3) Most revenue is poured back into the business to generate growth. At the very least, it is often kept in company name. Often times, small business owners funnel almost all of their income and expenses through the company in company name and report very little personal income.

The notion that taxing those reporting more than $250k/year income will stifle job growth is disingenuous. In addition, even if they truly believed that legislation would hurt them down the road, wouldn't they want to do things now to make money before the changes went into effect? I'm in a right-to-work state. Here, if they hired workers and then later discovered that it wasn't profitable, they could just fire them or lay them off. That's not happening, so I find your Rush Limbaugh provided explanation flimsy at best.

The real issue is that consumers are not spending because there is no real inflation-adjusted wage growth in this country, and there hasn't been for 20 years. Instead, consumers used low-interest credit to supplement their lack of wage increases. This lack of wage increases occurred during a huge boom in worker productivity. So where did the money go? To the top 3% of incomes in this country.

So yeah, I am okay with restoring their taxes to where they were during the prosperous Clinton years and keeping tax rates for the 97% of us who are actually suffering at the lowest rates ever.

Tuesday, July 13, 2010

Just some links to articles that made me stop and think

This is a fantastic article on why Liberals should love the Second Amendment. Hint: It's about the Freedom to Revolt!

http://www.dailykos.com/storyonly/2010/7/4/881431/-Why-liberals-should-love-the-Second-Amendment

This is a great article on politicians who use Christianity as part of their message but then don't act in Christian ways. We should all be wary of hypocricy.

http://religion.blogs.cnn.com/2010/07/12/my-take-christian-politicians-should-start-acting-christian/?hpt=Mid

Tuesday, June 1, 2010

Deregulation cripples government's ability to protect its Citizens

Interesting commentary on cnn.com from Julian Zelizer.

"With the BP spill, the question revolves around deregulation. As with the financial meltdown in the fall 2008, the oil spill highlights the cost of weakening regulations -- in this case, those rules that had been adopted to safeguard the environment.
For over four decades, some conservatives and centrist Democrats have waged war on the environmental infrastructure that was put into place during the 1960s and 1970s (including under Republican President Nixon). "
http://www.cnn.com/2010/OPINION/06/01/zelizer.deregulation.oil/index.html?hpt=T1

Sunday, May 30, 2010

Various Articles about BP Oil Spill

This is a collection of links to articles I've read recently on BP's Oil Spill. Most are opinion pieces about the Federal Government's reaction to the crisis and the appropriate role of government in situations like this. The biggest thing that stands out to me is how many people side with Big Business over their own interests and how weak the regulation is in this department, mostly due to Big Oil dominating the interests of U.S. citizens for their own benefit. Instead we are left with a hamstrung government trying to make up solutions as they go along and mostly forced to ride backseat to a corporation more concerned about its own profits than about anthing else.

We need much better regulation in this area going forward. This should be crystal clear by now.

http://www.nytimes.com/2010/05/30/opinion/30rich.html?hp

http://www.cnn.com/2010/OPINION/05/30/brazile.big.government/index.html?hpt=C2

http://www.csmonitor.com/USA/2010/0530/BP-oil-spill-top-kill-failure-means-well-may-gush-until-August

This one discusses the impact of the oil spill and BP's use of dispersants on marine life. Essentially, the use of dispersants destroys the red blood cells of any animals that come in contact with it, so yeah, that's probably a bad thing.
http://www.independent.co.uk/news/world/americas/oil-spill-creates-huge-undersea-dead-zones-1987039.html

I am shocked! Shocked! to learn that Halliburton was involved in taking billions of dollars to be incompetent and cause harm to life on this planet! Thanks a lot, Dick (Cheney)! Your legacy lives on!
http://www.independent.co.uk/news/world/americas/what-was-halliburtons-role-in-us-oil-spill-1987038.html

http://www.nytimes.com/2010/05/30/us/30rig.html?hp

Big Surprise! Mitch McConnell wants the American taxpayer to bear the brunt of cleanup costs rather than stick to the Polluter Pays principle. A bailout of big business with no chance for the American taxpayer to get any return on their money? Awesome!
http://www.salon.com/news/opinion/feature/2010/05/28/oil_industry_bailout/index.html

"In the long run, we can and must have some good debate about the way the anti-regulation politics of the last 10-20 years led us here. Actually, there's nothing to debate. It's fact."
http://www.salon.com/news/opinion/joan_walsh/politics/2010/05/29/top_kill_fails/index.html

http://www.huffingtonpost.com/2010/05/30/ed-markey-bp-lying-or-inc_n_594800.html

This one's a bit Conspiracy happy, but it makes a lot of interesting points that I am interested to research further. Oh, and you have to love the logo from the end, actual BP ad from 1999.
http://blog.buzzflash.com/editorblog/312

"BP, and the oil industry in general, has managed to get away with a lot," she said. "But the reason I go back to the government is oil companies' jobs — their focus is to make money. If they're allowed to take shortcuts, of course they will. And it's the government's job to make sure that they're not allowed to do that. Bottom line, our government shouldn't let the oil companies do what they're doing."
http://www.mcclatchydc.com/2010/05/29/95064/oil-spill-is-taking-a-toll-on.html?utm_source=twitterfeed&utm_medium=twitter&utm_term=news

Please read, think, and discuss amongst yourselves or here on this blog.

Friday, May 28, 2010

American Citizens are expendable little piggies - clearly

http://www.thedailybeast.com/blogs-and-stories/2010-05-25/shocking-bp-memo-and-the-oil-spill-in-the-gulf/full/

I don't even know what to say about this, other than to say that I feel like I should be stunned but I'm not.

When you don't have a system of checks and balances and instead rely purely on the profit motive, you get this type of thinking. Time and time again, short term thinking about purely monetary concerns trumps any long term economic thinking and certainly any concern for any non-economic results. Lives? Hmm, translate that into a dollar amount based on the potential for negative publicity. The environment? Hmm, translate that into another dollar amount based on publicity hit. Change our logo to look environmentally friendly without making any real changes. Brilliant! If it costs too much to clean it up, then don't do it. Hmm, the fines are lower than the cost of cleaning it up? Take the fine. Hmm, the cost of putting in safety features is higher than the expected losses from forecasting the odds of ever needing the safety features? Safety, shmafety!

The brazenness of this case should be shocking, and it might be to many Americans. To me, it's just Big Business as usual.

Thursday, May 27, 2010

Gulf Oil Spill: BP Used Riskier Method to Seal Oil Well Before Blast - CNBC

Gulf Oil Spill: BP Used Riskier Method to Seal Oil Well Before Blast - CNBC

Big surprise! There were warning signs before the accident. BP made decisions based not on safety or even long term economic outlook but instead cut corners for short term gains. So, to save money short term but cost themselves money long term, 11 people are dead and millions will impacted by the largest oil spill in U.S. History.

I think this is a clear sign that we need real regulation on how these rigs are operated, with a focus on safety for both those working on the rig and for those potentially impacted by accidents or even just normal use. The Department of the Interior has promised a full review of how this stuff is handled. I look forward to seeing what changes are made.

Wednesday, May 26, 2010

Great American Safety Net

I am a firm believer in programs that I think are very much misunderstood and demonized. I'm talking about the programs that make up the great American safety net, programs such as Social Security, Medicare, Medicaid, Welfare, Food Stamps, Unemployment Insurance, etc.

When they get labeled as "Entitlements", it really drives me crazy. That term always seems to be said with a sneer aimed at those who dare to accept assistance in their time of need and who are supposedly demanding to be given handouts so they can maintain their status as leeches on that portion of society that has the moral high ground by virtue of experiencing economic success. That somehow the great American dream is to live off of the dole funded by others just makes me so angry. Nothing could be further from the truth.

I know this firsthand. My mother and I lived in poverty, living in free housing (not the highest quality, not the best behaved neighbors, etc.), living from Welfare check to Student Loan check, eating the best meal of my day on the Free Lunch program, and yes in fact, eating government cheese (think Velveeta with more salt and less quality). Was it hard? Um, yeah. It never occurred to us to think to ourselves, "Boy, this is the life! Let's just do this forever and ever. Those fools with jobs who pay income tax are really wasting their time!"

So what did we do? We dug deep and focused on what it would take to make our lives better. My mother worked two part-time student work jobs to pay her way through the local college, and she busted her butt to get good grades. I saw her focus and her sacrifices, and I resolved to never let her down. So, I did what I had to do to maintain the highest grades and to stay out of trouble. I was bullied, but I never told anyone because I was afraid to rock the boat. I figured my best escape was to stay safely at home and lose myself in books and tv and a world of my imagination. It helped me get through a life with no luxuries, with barely more than the bare necessities of survival. Eventually, life got better as my mother's hard work slowly paid off (grad school, reasonable jobs, marriage to my step-father, and now a long career with the Federal government). I never forgot where we were, what it took to survive, and what it took to make it out of there.

Many of you will say that my family are the exceptions and not the rule for trying to rise above where we were. I disagree. I think we are the exceptions because we succeeded. We were blessed with talent to go along with our persistence and focus. Even we would have had far less of a chance to survive and eventually succeed if not for the governmental assistance we received.

If not for free healthcare, one of the many times I had strep throat might have done us in. If not for free housing, we might have tried to live in a friend's living room, I guess. If not for Welfare checks, student loans and student-work programs, my mother would never have gone to college and certainly not to grad school. Her odds of making it would have been a lot harder with her GED and a resume populated only with a 1-day stint at Burger King. If not for the Free Lunch program, we would've had less money for anything else. In those days, school lunches were fairly healthy, so that was nice.

The reality is that these programs combine to make a reasonable baseline for our citizens. It's not a great life, but it's a place where you can mount a comeback or make a fresh start. Our nation has enough money to ensure that our citizens can at least expect to have a chance to survive and to have a reasonable platform to create their own success. It not only improves the quality of life for the least successful of our citizens, but it also leads to more overall success for us as a nation.

Imagine that life is like a high wire act. The higher you climb up the pole, the higher the wire you can walk, and the more success you attain. Some people are better at climbing poles than others. Some were born higher up to start with. Some are better than others at walking on the wire. [In America, we are all led to believe that we have equal access to the poles and the wires and the success. In an ideal world, this would be true, but that's a matter for another time.] What happens when someone falls off of the poles or the wires? They fall to the ground and they die. Game over, man!

I propose that this web of governmental programs is a safety net. When you fall, you still fall, but you don't die. You end up at the bottom, but you have a chance to start over and work your way back up the pole to the wire and to the success. This safety net is high enough from the ground to prevent death, but not high enough to be deemed a success. In fact, nobody wants to stay there, they want to get back to climbing and succeeding.

This to me is Freedom within Boundaries. Without the net, the downside of exercising your Freedom by daring to dream, to try, to strive, to pursue success is too high. Fewer people will make use of their Freedom to walk the wire when death is a possibility. When you remove death from the equation, suddenly more people make use of their Freedom to try and be great. Greatness is not guaranteed to any man, but it becomes more of an option when the price for failure is lowered, if only by a small amount. This will cause a net (no pun intended) increase in overall greatness achieved by the overall society. This means that the price of the safety net is more than made up for by the overall increase in prosperity. It encourages achievement in place of complacency and fear.

The devil is in the details of execution, but the general concept of the great American Safety Net works for me. I look forward to your comments and suggestions.

Tuesday, May 25, 2010

Freedom Within Boundaries

What does Freedom within Boundaries mean?

Many people argue that Boundaries stand in the way of Freedom and that unlimited Freedom is the best thing. So they see Freedom and Boundaries as diametrically opposed foes, with each increase in one resulting in an equal decrease in the other. The reality is that too much Freedom is actually dangerous for the person who is free and for everyone else, too. The argument that too many boundaries can be bad is a fairly obvious one, but not everyone sees that too much Freedom can be a valid concept. Usually it takes my favorite tool, an analogy, to make it clear.

Imagine your children are playing in your front lawn. Your children are between 6 and 10 years of age. The lawn has no fences. The street in front of the house is very busy at all hours, both with cars and with foot traffic. The neighbors on both sides raise large, aggressive dogs (Pit Bulls, Rottweilers, Dobermans, Rabid Poodles, whatever) and let them roam free.

You give your children complete freedom to play in the yard. How good do you feel about this situation? How far will the kids venture from the front door before running back? How much freedom do they get to enjoy?

Now imagine you build a fence around the lawn. This fence is high enough to keep the dogs out and to keep your kids from running into the street. How good do you feel about this situation? How far will the kids venture from the front door before running back? How much freedom to they get to enjoy?

By virtue of having this boundary, you have created a safer environment for the children to express their freedom. Instead of using something like 5% of their unlimited Freedom, they now use almost 100% of their slightly reduced Freedom, so the actual amount of Freedom that is enjoyed or expressed or consumed or whatever is much, much higher.

This is how I feel about laws, governmental regulations, rules at the pool (no horseplay!), stock market rules, board game rules, rules of driving, etc. Good rules provide a safer environment where more freedom is actually experienced. Not all rules are good rules, of course, and it is certainly possible to have the boundaries drawn so tightly that there is little room left for freedom. The key is having the right rules and the right balance between safety and being overly constrained.

My intention is to maintain this blog as a political and philosophical space. I encourage debate, but I discourage personal attacks. Essentially, I stand behind Voltaire's quote: "I do not agree with what you have to say, but I will defend to the death your right to say it!"