Sunday, April 10, 2011
Pass The Damn Bill
There will be an agreement before the United States defaults. Banks and big business know that default is not an option. Even threats could damage the credit standing of the United States in the world. Business will jerk the leashes of Republics and make sure a bill is passed.
I would like to make a suggestion. Republics should agree to increase the debt limit enough to cover the debts projected for the next three years under the Ryan budget without any policy riders. That's right, for all their huffing, the Ryan plan has significant annual budget deficits for years to come.
Can Republics really destroy the credit of the United States when their own budget plans will require that the debt ceiling be raised significantly?
In three years, the Republics will have time to elect a Republic Senate and a Republic President. Then they can do whatever they want. In the meantime, raise the debt ceiling without bullying and threats so we can tackle other issues. Like the FY12 budget.
Responsible Chickens
The budget battle wasn't really a game of chicken. The two guys were risking their own lives in those cars. Politicians were risking the American people and economy.
The two guys in the car were willing participants. They may have been pressured into the game, but they could have said they wouldn't play. Republicans and Democrats had to play the game and reach an agreement or the government would have shut down.
The choice was over the stakes and what the other side would agree on. Republicans chose to set the stakes high and then force negotiations to the eleventh hour to see how far they could push Democrats. This wasn't a game of chicken, it was blackmail perpetrated by Republicans.
This wasn't so much a fight over the budget as a test by bullies to see how much Democrats were willing to compromise rather than hurt the country. Democrats jumped first and further. I guess they are the "chickens".
Do Your Job or Quit.
Thursday, April 07, 2011
President Obama's Poll Numbers Rise
Tonight on the news I saw a poll asking who you would blame if the government is shut down?
The numbers seemed to be confuse some of the pundits.Who would voters blame?
Republicans: 37%Democrats: 20%
President Obama: 20%
So it looks like Democrats would bear the brunt of voter anger, 40% to 37%.
But more than 20% of voters think President Obama is a muslim, not a citizen, a socialist, hates America, etc. Democrats should be happy that the President's numbers are so good. Only 20% would blame him for the shut down!Wednesday, April 06, 2011
What Is Important To You?
Republicans hate government. Keep that in mind as you listen to their solutions to problems. The Republican approach to financing government is to cut taxes then figure out what services to cut to live within that new number. How about a different approach?
What if we tried to agree on what is important to us and then figured out the most cost effective way to make it happen?
For example, what if we said that it is a national goal that all senior citizens are able to live out their final years with dignity, access to health care, housing and nutrition? We could then talk about what levels of assistance meet these goals, who qualifies and how we pay or provide this assistance.
Money is the easiest way to transfer value from one person to another, but there are other ways. We might help offset some costs by requiring two years of community service from all young adults. One of the options would be for some these young people to help take care of the elderly. Or build and repair houses. Or cook and deliver food. Or staff a community home. This would decrease taxes and offset the lost revenue with labor.
Anyone might be able to opt of paying taxes to support elderly and instead meet their obligation by working some number of days each year. I'm sure there are other, much better ideas. The point is instead of generating n dollars of revenue and then deciding how we divide that pool of money, why not decide what is important to us and then figure out how to make it happen?
As a country, how about discussing what is important to us?
Look For Alternatives
Shared Pain
Social Security
Medicare
Medicaid
Taxes for business
Taxes for the rich
Sunday, April 03, 2011
What would you pay for?
In the current debate over the deficit and budgets, Republics want to take any tax increase off the table. Their current framing is, we don't have a revenue problem, we have a spending problem. That is, cut spending; do not raise taxes.
It is clear that Republics and Democrats have a different philosophy about the purpose of government and how to pay it. In general, Republics believe that less government is always better (at least that is what they say, if not always what they do). Government is the problem, not the solution. Republics want to decide how much they are willing to spend on government (which is always less than what we spend today) and then determine how to distribute that money. Preference is always given to the generators of wealth.
In general, Democrats believe that government is about creating a civil society. Democrats would rather first decide what is important to do and then decide how to pay for it (sometimes). Preference is given to the less fortunate. The Democratic position is obviously harder to sell.
While Democrats have certainly authorized new spending without determining how the additional expenditures would be paid for, they managed to live under the PAYGO rules of the 1990's. Had these rules been extended, the budget busting 2003 tax cut, the Medicare prescription program and the wars in Iraq and Afghanistan might have had to have been paid for instead of just adding to the debt.
The two Bush era tax cuts added significantly to our debt. Let me state again, tax cuts when you are already running a deficit without the same dollar cuts in spending add to the long term debt! Republics constantly berate Democrats about spending more than we have revenue to pay far and passing that debt on to future generations. Fair enough. But cutting taxes without cutting spending has the same affect and is just as destructive. The math is simple. Revenue minus expenses equals surplus or debt. When you are already running a deficit, increasing spending without increasing revenue will increase the debt. Likewise, decreasing revenue without decreasing spending will increase the debt.
Contrary to popular belief, the Republics have actually been winning the deficit/debt debate. "Starve the Beast" has been Republic dogma since Ronald Reagan. This is the policy of always cutting taxes without concomitant cuts in spending in the belief that the eventual fiscal crisis will force drastic decreases in the size of government.
Republics have succeeded. The public believes we have a fiscal crisis generated by too much spending not a problem generated by a weak economy, tax cuts and spending. The discussion is how do we cut taxes, expenditures and the size of the government. Why aren't we also discussing what functions of government are worth paying taxes to support and how do we generate the revenue to pay for them?
Sunday, March 27, 2011
Save My Marriage, Vote For Obama
Recently, to explain his infidelity and the failure of two previous marriages, Newt Gingrich basically said that his patriotism and love for this country caused him to work too hard for his country and not hard enough at maintaining his marriages.
What a novel explanation. What he is basically saying is, I'm so patriotic I was willing to sacrifice my marriages for the good of the country.
If Newt should win the Republican presidential nomination for 2012, do you think the current Mrs. Gingrich will vote for Newt or vote for President Obama and possibly save her marriage?
Chameleon Gingrich
Newt Gingrich has been making conflicting statements about Libya. He was emphatically for a no-fly zone before President Obama decided to support the UN resolution. Once President Obama expressed support for a non-fly zone, Newt was suddenly emphatically against it.
The argument's he uses to defend his flip-flop are tortuous. It is obvious his opinions are purely driven by a simple logic - I don't agree with Obama. A tactic he fully developed years ago when it was - I don't agree with Clinton. He should change his name from Newt to Chameleon. His opinions quickly change to match the current Republican political landscape.
Saturday, March 26, 2011
Japan: 50Hz and 60Hz
In Japan they use two different systems. In the south/west they use 60Hz. In the north/east (where the failed reactors are located) they use 50Hz. While 60Hz can be converted to 50Hz, Japan has a limited capacity to do this. So surplus energy in the south/west cannot easily be diverted to the north/east.
I've heard predictions that it will be months, possibly years, before full power is restored to Japan. It is sad that such bad public policy will make Japan's disaster even more painful.
There are some lessons to be learned from Japan's disaster that may be very important for the U.S.. There may be some things we should be doing right now to prevent large scale, long term power failures in the United States.
More later.
You didn't know that Japan has such an irrational power system? You aren't listening to National Public Radio! NPR is a national treasure. Don't let politicians damage it.
Why Libya?
I don't believe it is in the best interests of the U.S. to be participating in such a significant way in Libya. I'm surprised President Obama has allowed us to be drawn in and took the initial lead. I'm disappointed that he hasn't done a better job of explaining why he took these actions and I don't see indications that a successful outcome is likely.
I've always scoffed when opponents of military actions insist about a prediction of how it will end before we start. That's impossible. It is also a political stunt for opponents to insist on some clear statement of exactly why we shouldn't intervene in Bahrain or Syria since we have attacked Libya. Every situation is different.
It would be nice to hear the principles that guided President Obama's decision. I think they've given some: humanitarian support, the Libyan government was threatening mass reprisals against citizens, a chance to get rid of dictator who has caused problems around the world, there was support for action from other governments in the region, there was significant internal dissent and armed resistance, there was military assistance offered by other countries from within the region and outside, international bodies supported intervention and it was militarily feasible with acceptable risks.
I would like to hear, and probably won't, that the analysis for success is high, that there are groups and institutions in Libya ready to form a civil society, that whatever government comes after military success has a reasonable chance to be much better than the current government, that there is a chance for some form of democracy, that human rights and living conditions in the country will eventually improve and that the country will not be destabilizing in the region.
And, why is it in our national interests to remove Khadafi?
I think the President could have done a better job keeping us informed, but the fact is, he has made a decision and he will be responsible for the consequences.
Sunday, March 06, 2011
Don't Listen
She recently won a Supreme Court case that affirmed the First Amendment rights of the Westboro Baptist Church to express opinions that most people find to be disgusting.
I agree with the Supreme Court, but Ms. Phelps has given us the antidote to her groups hateful speech. She said that the Supreme Court put a megaphone to the mouth of her tiny church. She is wrong. They didn't do that. They only said that governments could not silence them. Her group has a megaphone only if the news media gives them coverage and we listen.
The answer is to not give these people the attention they crave. They are irrational and delusional. Reason is not going to change them and attention only reinforces their delusions. If no one listens, if no one stages counter protests, if we all change the channel when they are given news coverage, then news organizations will stop covering them . This won't mute their hate or cure their ignorance or diminish their delusional view that they speak for God. They just go back to being a nameless group of kooks no one pays any attention to.
The beauty of our system is that our Constitution prevents governments from deciding which speech should be heard and which should be suppressed. It leaves it to people to listen or not listen and make our own decisions.
I've heard what the members of the Westboro Baptist Church believe and totally reject those ideas. From now on I choose not to listen.
Sunday, December 05, 2010
Saturday, November 27, 2010
Friday, November 26, 2010
Sunday, November 21, 2010
National Security vs Politics
Senator Jon Kyle (R, AZ) and Republican Senators have put politics above our national interest by refusing to vote on the New START Treaty with Russia.Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, was on ABC's This Week this morning where he was questioned by host Christiane Amanpour. He unequivocally supported the START Treaty. When asked repeated questions about whether this treaty was good for the country and should be passed, he made clear that it was in the best interests of National Security that the START Treaty be passed ASAP. Even in a lame duck session. He emphatically said "ASAP".
When asked if the Republican opposition was based on politics or policy, Admiral Mullen obviously refused to comment. But it was clear from all his other comments that he saw no national security reasons for delaying ratification of the treaty.
Sometimes is hard to tell when Republican obstructionism is principled or political. In this case it is obvious.
WTHWYT - Rep. Allen West
Really! What The Hell Were You Thinking?
If your marketing plan was to get your face on every late night comedy show, you succeeded.
Monday, November 08, 2010
Repeal tax cuts for rich

Their argument is that many of the people affected are small business owners and the extra tax burden would cause them not to grow their businesses.
Let's think about this.
First of all the, these high income people would still get the tax cut on the first $250,000 of their income. Assuming that the current tax rates on income under $250,000 are extended, the higher rate after January 1 would only be on any income over $250,000.
So if I understand the rates correctly, the rate for income over $250,000 will change on January 1, 2011 from 35% to 39.6%.
Let's say you are a small business owner, have $250,000 of taxable income and starting 01/01/2011 you have the opportunity to grow your business and raise your income from $250,000 to $350,000. At the end of the 2011, your tax bill will be $4,600 greater if the Bush tax cuts for the rich are not extended. The federal tax on that $100,000 would be $35,000 if the tax cuts are extended and $39,600 if they are not.
So Republicans think this business person would not grow their business by $100,000 and increase their after tax income by roughly $60,000 because they would have to pay an extra $4,600 a year in federal taxes. That doesn't make sense.
I know that $39,600 in taxes on $100,000 sounds like a lot, but these rates would be the rates that were in effect in 2000. Not exactly a bad year for business.
When the current lower tax rates were passed:
1) They were not paid for. These tax cuts were paid for by increasing the debt. The Chinese and others loaned us the money to cover the increased debt these tax cuts caused. Everybody got a tax cut that would have to be paid for by tax payers in the future when that debt (plus interest) was paid off.


