Has American Debt hit a Ceiling?

May 16th, 2012

My brother Bob Blain, retired Sociology Professor at Southern Illinois University who has specialized for the last 35 years in studying economies and how they impact on societies has just published a new ebook that is available online.  Just type in “The American Iceberg” and it will pop up in Google and other search engines.  It is down-loadable and FREE.   After a recent conversation on the telephone Bob agreed that getting his message out is so important that he reduced the price of the book from $4.99 to FREE!!!  ”The American Iceberg” starts with a discussion of America’s debt government, corporate and personal.  In an unpublished paper written in 1976 (yes 35 years ago!) he prophesied we would have the debt we now have in 2012.  He explains and documents the history of how we got where we are and how it was inevitable.  You should read this book.  Some of the early document quotes, discussions by the Founding Fathers and early Congressional speeches use wording that is now considered archaic but he carefully explains the quotes that may at first seem a little obtuse because of the wording.  But as he documents in the book, he is not the first to say that the course settled on by Congress in 1790 to finance the America way of life was from the start doomed to lead to the growth of a huge American Iceberg of debt.  Read for yourself.  The book is FREE.

Not only should this history be of interest to Americans but at least to all Europeans and any other peoples whose government have and are financing their economies in a similar manner by creating debt.  The mechanism he elucidates explains how the current collapse of Greek economy, the difficulties in Portugal, and Spain and the impending disasters in America, England and any other country that continues to finance its economy with interest bearing debt and fiat money issued by national financial institutions such as the Federal Reserve Bank in the USA.

As he and the predecessors he mentions try to point out to the citizens of countries using such a system countries like ours are not really controlled by the government or the people but by the financial institutions and wealthy that control the flow of money.  If you don’t believe me read the book!  Its FREE.  What have you got to loose but a little time reading.  What have you got to gain?  Knowledge and knowledge is the foundation for change and the power to change.

Professor Blain believes that American debt has reached a ceiling through which it can not penetrate.  I believe that there may be a little bit of room left to increase our debt since not all of the Middle Class is yet destitute. Not ALL of the wealth has been sucked to the top.  But as Bob points out in “The American Iceberg” the data of our economic history is ominous and disaster is eminent.  If you don’t believe him read the book.  Its FREE!

In our conversation a few days ago Bob explained to me that the Great Recession was the hand writing on the wall, the recent financial collapse of many in the American Middle Class, the past two decades of corporate failures, and the recent $9 billion loss of JP Morgan-Chase, the deepening crisis here in my home state of California are all related to the fact that America has hit the limit of its borrowing power.  To put it another way “The financial ship of the US, its governments and its people has hit The American debt Iceberg which has been growing beneath the surface even faster than what we have been perceiving above the water line.  Not just mortgages are below water, our entire economy is in horrific trouble.  While our Congressional band plays on our American Economic Ship has hit The American Debt Iceberg.

The second half of “The American Iceberg” is a discussion of the lifeboat Bob offers.  Bob wants to change how our money is valued.  Its a very interesting concept.  He and I have had many conversations regarding how to fix the problems. (I prefer the word conversations to debates because they have been an open honest presentation of our difference of opinions and why we disagree.)  For Bob’s solutions you have to read the book because the best way to understand his ideas is to read them as he explains them.  It isn’t difficult, he has been a very popular university professor because of his practical approach to problems.  How many times do I have to urge you to read the book!  Many conservatives will want to put the book down before they have read it through.  I feel sorry for these people because they have closed their minds.  Don’t confuse me with the facts, I will believe what I want to  believe or the propaganda I have been fed since childhood because its a lot of work to get the facts and think them through for myself.  But you not only owe it to yourself, it has become vital for your economic survival!

Do I agree that Bob has the answer?  To be quite frank, No.  I DO BELIEVE THAT IT IS PART OF THE ANSWER.  His concept for re-valuing money based on labor has many merits,  Read the book to understand why.

I just don’t feel that by itself, changing how we value money will cure all the evils in our current system.  As he agrees, there will always be the need for different pay for different work, rewards for better ideas, rewards for better work, rewards for better management and incentives to be innovative.  The issue here is how great those difference should be.  Even if we can develop a fair system for determining those differences, and I think we can, there is still a fundamental evil that will always exist or that will eventually reemerge if it is eliminated and that is interest. And interest is the Satan of any economic system.  Can this Devil really ever be permanently eliminated. No, no more than evil  in general can be eliminated from Mankind.

Here’s the problem I see eventually emerging even with Bob’s system and how it must be controlled for ANY economic system to work fairly.  Difference in ability, differences in creativity, differences in motivation, differences in hedonistic or altruistic desires will always exist.  It is the nature of Man and all animals because of our physical ability to feel pleasure and pain.  Also some people are more motivated to prepare for the future by using delayed gratification.  Put another way some people will save for the future and some will not.  The non-frugal will always want access to more to spend.  Any currency based on labor will limit the absolute amount anyone can earn by labor because there are only 24 hours in a day.  So the imprudent will never be able to earn enough to constantly have more pleasure.  So they will eventually turn to the frugal to “borrow” more resources.  The Frugal by nature not being stupid will know that there is increase risk in loaning resources be they called Hour money or fiat dollars with no intrinsic value like we have currently.    So the Frugal person and those earning higher hourly wages will eventually have saved resources and will want some increased return if he/she loans out those saved resources because of the increased risk that they may not even be repaid.  Nobody wants to work hard so that someone else can enjoy the fruit of that labor.  Yet we do that currently when the a capitalist takes an unreasonable return for resources invested, or a worker (CEO for example) demands excessive reward for services rendered or to be rendered.  (By the way the woman executive primarily responsible for the $9 billion loss of JPMorgan-Chase stockholder investment is still going to get paid $37,000,000!!).  So there will always or eventually be the existence of return for risk and increased return for increased risk or what is commonly called interest.  Even if a society were to outlaw all forms of compound interest ( the greatest Devil of them all) , even simple interest will result in the most frugal and the greatest risk takers eventually accumulating more “wealth” to reinvest and we are then off to the races of wealth accumulating in the hands of fewer and fewer people just as we have now.  So what is the answer?

In its early days Usury or the collection of ANY interest for loaning resources was a MORTAL sin for Christians but not for Jews, and mortal since were the worse kind.  Between the Late Middle Ages and the beginning of the Industrial revolution, this stricture was relaxed and eventually vanished for Christians. Today just as it did from the earliest days of the Industrial Revolution, no return for risk (or no interest) would mean no capitalism and no ability to borrow in an emergency.  Some would say absolutely no capitalism would be wonderful.  But would it?  Without capitalism how would private enterprises get started or grow?  How would we provide for the future when we are old or disabled and unable to earn labor based money?

I believe that the evil is not interest per say or capitalism per say but excessive accumulation of wealth which means excess power, excess control, disproportionate luxury, disproportionate remuneration for services and productivity.  Hour money as proposed by Bob would help highlight when wage demands or earnings are out of proportion to services or risk.  Hour based money would make it easy to adjust currency values in an equitable manner.  Hour based money  valuation has real merits compared to the arbitrary and capricious manner now imposed by bankers and financiers were are based on subjective fears.

So how can we have interest without re-evolving to our current debt and wealth accumulation abuses?

1) Limit the total amount of wealth that can be accumulated by any one individual or household.  Such a limit must be reasonable encourage innovation and risk taking.  How can this be done?  By a truly graduated income tax with a 100% tax above a certain income.  Unfair you say? How I answer?  Accumulation of assets by one individual means loss by someone else.  The greater the wealth of a few the greater the poverty of others.  Look around you if you doubt the truth of this statement.  If you believe that the housing collapse only happened to lazy people you are more cynical or stupid than I thought.  Of course you don’t.  So why did it happen?  Earning and taxes disproportionally favor the rich. Everyone knows that especially the wealthy.  That’s why they are spending so much to block real change towards equity and hiding behind terms like conservatism and smaller government.

2) The current horrendous maldistribution of wealth needs to be corrected.  YES I’m talking about wealth redistribution via taxes.  Do you really think Mitt Romney needs 4 luxury cars while a hard working mother of 3 has no health insurance?  Do you really think the founder of Facebook should be a Billionaire for 1 yes 1 idea while thousands of veterans can’t find jobs because our consumer economy is starved for Middle Class and Working people with the discretionary income to buy what they produce?  Do you really think we should be making so many of our products overseas so that capitalists can have extra profit by using cheap, desperate foreign labor?  Do you really think that corporate investors should get richer by removing benefits for laborers and forcing them to abandon their labor unions?  Do you really think American executives should be receiving 500 times the wages of their workers when European executive make 30-50 times their average workers?

We will not outgrow our debt and economic crisis, the last 100 years shows that we “outgrow it by increasing debt” and debt is our coffin.  More debt just means burying the coffin sooner and deeper.  We must redefine our money in meaning terms that are defined not in any material commodity but in the real commodity that creates wealth: human labor per hour.  But this is not enough.

We must outlaw compound interest.

We must institute a real graduated income tax with a cap on total income and wealth that is adjustable with inflation or deflation should they occur.

We must redistribute the current horrific maldistribution of wealth putting more money into the hands of the average consumer.

We must insure than labor’s wage reflects labors productivity.

Do these and there will be more money in circulation in the economy.  More money in the economy means more jobs.  More jobs means a healthier economy and greater prosperity for all.

So what about the debt ceiling?  The first step is to do away with the ability of non-elected people to incur more debt and issue more fiat money.  That means eliminate the Federal Reserve system.  Next authorize the federal government to issue money.

We must forbid government at ALL levels from acquiring debt real or by “phantom” accounting.  Accounting tricks and borrowing from future obligations by postponing their payment to a future date must be forbidden (That’s how California got into trouble in spite of a Constitutional provision requiring a balanced state budget).  Legislatures also overestimate income in order to make a budget look balanced.  This practice must be curtailed and a better method found to estimate future income. A balanced budget amendment as proposed by the Republicans and other conservatives won’t work by itself as California and many other states and local governments have demonstrated.

We will NEVER pay our national debt by cutting services for the poor.  We owe tens of thousands of dollars for ever man woman and child in America.  If we spent $0 for 3 years and starved everyone to death we still could not pay even our federal debt.  So Conservatives and Republicans, let’s get real.  Cuts ain’t going to solve the problem.  Fundamental change in the system is vital.

In today’s political climate these will only come about if WE THE PEOPLE DEMAND A CONSTITUTIONAL CONVENTION TO FIX AND UPDATE OUTR SYSTEM TO THE 21ST CENTURY.

DOC

 

 

Should We Learn From The French?

May 9th, 2012

The French just held their national elections and the whole process lasted less than 6 months compared to 4 years in our USA.  There were no Super Political Action Committees, no years of smear, very little television or radio involvement, much more discussion of issues and as many candidates as wanted to run.  How can that be.  Recently Rock Center had a segment on how the French system works.  There are some aspects of it that might improve our national election process if adapted to our democracy.

Here are the basic nuts and bolts of the French system:

1) Anyone can run for President of France.  To get their name on the national ballot they must get 500 signatures from French officials currently in office on their petition. The signature of the mayor of a town of 1200 citizens is just as valid as the signature of the mayor of Paris or the head of the French Assembly.  They do not have to belong to any political party (although belonging to a party is a big advantage since a campaign organization usually come with the party).

2) The candidate must be of voting age (not necessarily over age 45 years as in the US.  I think our age restriction gives us a better chance of getting more mature and experienced candidates.

3) No one can campaign before the primary season.  This restriction is guaranteed by the legal restrictions put on the media that time used by any candidate for campaigning or even reporting the activities of a candidate or already elected official seeking reelection must be matched by the media giving equal (unpaid for) time to all other candidates.  The media does not want to have to give lots of free time to candidates so they do not accept ads or voluntarily give free time of space to any candidate outside of the time for the primaries.

4) Primary season is LIMITED to 4 months.  There are no provincial (state) primaries.  Wouldn’t it be nice NOT to have to watch all those months and years of political campaigning.  Every candidate runs everywhere and all the primary votes are cast the same date by the citizens and not by caucuses or local state voters.  In other words EVERYONE GETS TO CHOSE THE TWO WINNERS OF THE PRIMARIES!  The wining two are not chosen by the largest party, the party with the most rich donors or even the party with the most money. Why? See 5) below.

5) All candidates are restricted to spending NOT MORE THAN $30 million during the 4 month primary season.  So the richer parties and richer donors can not buy the primaries.  It’s NOT who has the most money to spend on ads or posters, it’s who can convince the most voters based on the issues that has the best chance.  Since all candidates are restricted to a reasonably low level of spending for travel and meeting with voters, most people wanting to be candidates have a reasonable chance of raising the same amount of money as all other candidates.  The ISSUES become the primary factor not who can hire the best ad agency, the most media time or get the richest Super-PAC on their side.

6) One the top 2 primary candidates are elected by the whole population of registered voters, these two candidates have a CAMPAIGN PERIOD LIMITED TO 6 WEEKS to convince all the voters of all the parties that they are the best of the two remaining candidates BASED ON THEIR POSITION ON THE ISSUES MOST IMPORTANT TO ALL THE VOTERS.  Furthermore they are restricted to spending no more than $50 million on their campaign during this 6 week final period.  Money can’t buy the elections.  Furthermore any media that provides, sells or reports campaign activities of any candidate during the primaries or the final 6 weeks of the two final candidates must provide equal time or equal space to the remaining candidates.  As a result the media play a very minor role in French elections.  Candidates are forced to meet with the people, have their organizations of unpaid volunteers working out of unpaid for facilities go door to door discussing their candidates position on issues.  Handouts of literature, junk mail, etc are minimal because of the strict restriction of campaign expenditures.

&) French elections are always held on a Sunday when most people are not working thus making it as easy as possible for people to get to the polls.  The french election turnout is usually about 80% of registered voters.  We vote on Tuesday (a workday) and in a very good year we get voter turnout of less than 50%.

So what parts of the French system should we consider:

1) Anyone should be able to run for ANY elective office whether or not they belong to a political party.  Currently someone who does not belong to a political party CAN NOT RUN for office.  In order to get your name on even a state ballot most states require that you belong to a political party.  A political party can only get on a state ballot in most states if they have at least 10% of that state’s voters registered as members of that party.  We should make it easier for independents to run for office.  Why not have a system where any candidate who gets “X” number of voter signatures on a petition can run for a state office and “Y” number of signatures would be automatically on EVERY state ballot for a national office?  ”Y” could be 5-10 times as large a number as “X”.  I would suggest 5-10,000 signatures for a state ballot depending on the population of the state and 100,000 signatures for a national office.

You might protest that this could result in hundreds of candidates.  I say fine.  On primary voting day this would be cut to two candidates (the largest vote getters regardless of party) for each office.  The primary ballot my wife received already has a dozen presidential candidates listed and a place for write in candidates so what’s a few more names. Your going to vote for the ONE who best represents your views and the more candidates on the ballot the more likely your are to find one who most closely represents your views.

What would happen to our current primary and state caucus system?  They are obsolete and have been corrupted by the political system so that states no vie for which can have the earliest primary so as to have the most influence on who gets to run.  As a result we have a small state like Iowa reaping disproportionate campaign money and political influence compared to say New York, Texas or California which have much later primaries (when the field of candidates has been narrowed and local favorites already “eliminated”) having no choice but to chose from what is left over.  ALL state primaries should be held on the same day.  The Supreme Court has upheld the “principle of “one person, one vote”, in other words that all votes should have equal value but how can that be when the states with the earlier primaries have disproportionate influence on choosing the eventual candidates.

Furthermore, independents have little or no effect on the primary outcomes as our system now stands.  For example, I registered as a member of the American Middle Party in California.  Since there are far fewer than 10% of the state voters registered in this party, I was NOT EVEN PROVIDED A PRIMARY BALLOT. The Republican primary ballot provided to my wife allows her to vote for any listed candidate of any party, even a Democrat since California allows “cross-over” primary voting but does not have the power to allow cross-over voting for national candidates such as the President.  Thus as an Independent I will not be  even provided a primary ballot with choices for President unless I re-register to a recognized national party:  I HAVE NO SAY IN WHO GETS TO RUN FOR THE FINAL ELECTION EVEN THOUGH I AM A REGISTERED VOTER WHO HAS PREVIOUSLY VOTED IN EVERY ELECTION.  My primary franchise has been revoked because a joined a splinter party.   I will only get to chose from national candidates determined by others.  Now there is taxation without proper representation if I ever saw it: a registered voter with a restricted franchise.

2) So we should have only one primary election date and every registered voter votes on the same primary date.

3) We should severely restrict the primary campaign season so that previously elected officials can spend their time addressing their state’s and our country’s current issues and not campaigning from day one for reelection in 2 or 4 or 6 years.  Four (4) months for primaries should be adequate even for a country a geographically and population-wise as ours.  The two (2) largest vote getters would run for final election even if the difference between candidate #2 and #3 is only one vote!

4) The final election campaign season should be limited to 8 weeks for all local, state and federal.

5) Primary campaign expenditures should be limited for local offices to $5-10,000 for local elections depending on the size of the locality and number of potential voters, $10-50,000 for state offices depending again on the size of the state in both territory and population; and $1,000,000 for national office.   Final election expenditures should be an additional equal amount.  No person, organization, company should be allowed to spend any money for any candidate or issue during the campaign season.  Only American citizens should be allowed to make campaign contributions and these should have candidate specific and overall amount restrictions.

6) All media including but not limited to TV, radio, Internet, Satellite communications, magazines, and newspapers should be required to provide free and equal time to all candidates in their areas of influence for any advertising time sold, news time given, meetings or rallies covered or reported.  Let’s make the candidates go to the people!

Unfortunately many of these changes will require a Constitutional amendment.

What say you?

DOC

Watching the Occupy Movement Self-Distruct

May 2nd, 2012

For some time I had hoped that the Occupy Movement would follow the example of the TEA Party movement:

1) Elect a leadership;

2) Develop an agenda that would catch on with the general public;

3) Grow by attracting new members with a program for improving American government and society in general;

4) Register party members in various states;

5) Become politically viable and recognized;

6) Propose political candidates on ballots;

7) Get Representatives and Senators elected to Congress and to state legislatures;

8) Become a peaceful political force dedicated to improving the status of American workers, Middle class and small business.

What have we seen so far:

1) A leaderless mob resorting to violence, property destruction, confrontations with police, arrests and lawlessness;

2) Self proclaimed leaders walking around carrying red flags with black silhouettes of Che Guiverra the Cuban Communist.  Now one thing I know for sure, carry symbols of Communists and your movement will never gain enough traction to go anywhere in America.  Communism has FAILED EVERYWHERE  it has been tried even in the early Christian church.  If you want to alienate the American Rich, American Small Business owners, the American Middle Class and even most of the American labor movement all you have to do is start preaching communism.  I don’t see how the Occupy movement will ever be able to shed a communist aura now that they have let these economic radicals with their repeatedly failed economic policies become such a visible part of their group.  The communist agenda is the antithesis of what the American public wants.

3) The Occupy movement will not gain members now that it has been linked to Che Guiverra and his ilk, it will become anathema to the Middle Class and Independents both of which are essential for any movement to succeed,  Just ask the TEA party organizers if you doubt what I say.

4) State governments are going to be reluctant to recognize any political party with communist members.

5) Without at least 10% of the registered voters in any state few if any states will recognize a party as being viable.

6) Few if any viable political candidates will be willing to represent a political party espousing the political agenda of Che Guiverra.

7) There will probably be snowballs in Hell before a Communist candidate gets elected to an American legislative body.  Who wants representatives for a defunct failed philosophy of government ownership of the means of production?  Who wants totalitarianism  in America?  Not me!

8) I think that the Occupy movement is in the beginning of its death throes:

a) I see no effective, unifying leadership;

b) I see no agenda for correcting the ills against which they protest.  Protest without offering solutions is like protesting starvation without planting crops.  Nothing will grow and the hunger for change will continue.

c) Change can only come through legislation, not wishful thinking and not from protesting in front of banks and Wall street.  They not only don’t want change, they will fight change.  These protests are in the location least likely to effect change.

d) Legislation can only come via election of candidates that will push the desired agenda.

e) Legislative change comes with new political philosophy from an existing (very unlikely) or a new political party.

f) If the American Middle Class and Working people really want legislation that will improve wages and benefits, create a fairer tax system, provide for retirement, bring full employment and renew upward mobility for the poor and lower Middle class, than they need a new political party devoted to the Middle Class and working people: an American Middle Party.  I get frequent emails from the Progressive Party.  I agree with many of their goals.  However, most people associate “progressive” with liberal and socialistic so the Progressive Party name is well intentioned but likely never to draw the large membership needed to effect real change.  It’s why I have never joined their party.

I feel sorry for those who have participated in the Occupy movement.  They feel disenfranchised; they have been.  They feel condemned to increasing poverty; they have been.  They feel exploited:;they have been.  They feel helpless; they are NOT.  In desperation they strike out blindly and ineffectively at the institutions they blame:the banks and Wall Street.   The real power is in the political system.  The rich know that and that’s why they have always controlled the political system.  But the Constitution gives the People the power to change all that peacefully while maintaining a viable and fair mix of capitalism and socialism.  The two can live together as long as one does not abuse the other.  So far capitalism has been dominant and the abuser.  It is time for the People to assert their right to political and economic dominance but NOT through a failed communist philosophy, social or political structure.

A large and powerful Middle class is essential to the survival of democracy, social and cultural stability, the economic well-being of everyone and for us to continue to be an example to the world of different cultures, religions, races and economic beliefs living in peace and prosperity.  What we need is a strong political party of Middle Class and Working Class voters.

DOC

Tax the Rich to Create More Jobs and Prosperity

April 13th, 2012

Taxing the rich goes against all the trickle down economic propaganda we have been fed for the last 50 years.  According to the economists who espouse this false theory when you lower taxes for the rich they have more money to invest to create more industrial facilities and therefore more jobs.

Saying or writing that increasing taxes on the rich will create more jobs seems counter intuitive and flies in the face of the trickle down theory.  But historical economic fact supports this counter intuitive idea that higher taxes for  the rich actually increases prosperity and wellbeing for the entire economy.

“I don’t want to believe that higher taxes on the rich will improve the economy so don’t confuse me wioth the facts.”

BUT FACTS ARE FACTS AND THE FACT IS THAT HISTORICALLY WHEN TAXES WERE HIGHEST FOR THE RICH, THE AMERICAN ECONOMY PROSPERED FOR ONE OF THE LONGEST PERIODS IN HISTORY, JOBLESSNESS WAS VERY LOW FOR 30 YEARS, WORKERS BENEFITS  AND WAGERS WERE THE HIGHEST IN HISTORY COMPARED TO PRICES.

Starting during the late Great Depression and continuing through World War II the graduated income tax was repeated adjusted so that by 1975 the highest income tax rate in the graduated income tax schedule was 94%.  In spite of this the economy surged ahead, joblessness plummeted, labor unions won significant wage, health and retirement benefits, government revenues increased, the standard of living increased, the American dream of home ownership, quality education, improved infrastructure, military and political might, plant modernization and increased productivity all occurred over three decades.

Then the economic picture began to change.  Taxes for the richest began to fall, wages stagnated, industry began to move jobs overseas, union busting became industrial and government (e.g. Ronald Reagan and the Air Traffic Controllers) goal, the Middle Class and labor began to borrow to try to maintain the lifestyle their parents had achieved through industrial jobs that were leaving the country.  Government debt and the negative balance of trade began to accelerate.  All these negatives were happening and accelerating during tax cuts that were especially generous for the rich.  How could this be?  Wasn’t trickle down economics supposed to improve the American way of life?

So why do higher graduated income taxes result in more jobs, greater prosperity, a higher standard of living, and greater tax revenues?  Follow the logic below:

1) Your sitting on a corporation Board of Directors getting ready to hire new executive staffers for the company.  They each want $1,000,000 a year.  But if you give them that much money and the government is going to take 94% of that in taxes, it means that if you give any of these executives $1,000,000 you are in effect giving the executive an after tax income of only $60,000 and the other $940,000 of the companies money to the government through the executives income tax rate.  Now try to justify giving $940,000 of the company’s profit (and therefore potential stockholder income) indirectly to the government.  That should make your stockholders really happy and you will probably get kicked off the Board of Directors like you should.  So if you  give the executive $100,000 instead, the executive would now end up in a lower tax bracket of say 45% and would still get $55,000 (only a net loss of $5000 after taxes) and the government ends up with only $45,000 in taxes.  Your company just saved $900,000 of which $895,000 would have gone to the government in taxes.

2) Now your company has an extra $895,000 in profit for each executive that it didn’t pay $1,000,000/year.  That’s it didn’t spend on executive wages. So what can it do with that money?  Well it can:

a) increase benefits for the executives  (which I believe should be treated at the same tax rate as salary);

b) It can use some or all of the money for capital improvements, research to find new and better products, it can expand production facilities creating more jobs and it can improve wages and benefits for labor.

3) Improve wages and benefits (which should be taxed at the same rate as the wages) for labor.  Won’t increased wages for labor result in inflation?  After all classic economics teaches that increased money in circulation increases demand and increased demand causes increased prices.  What are the facts?  Increased prices only result if production can not meet demand.  Today in America productivity increases have resulted in excess production compared to demand.  Excess production means excess inventory which results in layoffs, decreased income, decreased demand and a slowing economy.  When this occurs, we experience recessions?  How many of those have we had since 1975 and throughout our history?

But do increased wages result in inflation when production meets or exceeds demand?  The answer to this question was first definitively answered by Henry Ford, the great capitalist millionaire.  Mr. Ford raised the daily wage of his auto assembly line workers to $5/day when the average factory job paid less than$3/day.  Ford was accused by some other millionaire of being a socialist.  But Ford intuitively understood something about a consumer economy that his millionaire peers missed:  in a consumer economy, people MUST have enough income to consume all that is produced.    So did the price of Ford cars soar because of the increased wages as you might imagine?  After all the new higher wages meant the average auto worker could save enough money to by a Model T just like the millionaire.  So there should have been increased demand (there was) and therefore increased inflation in auto prices according to classic capitalist economics.  In fact THE OPPOSITE OCCURRED, prices fell because Mr. Ford recognized that the increased wages would result in increased demand and so he increased production and even though the profit margin per car may have been less, his overall profits and wealth soared and the rest is history.  But Henry Ford is just one example.  When income taxes were truly graduated and the richest paid a much higher rate of taxes, more profits went to the largest segment of the American population.  Not only executives but rich company stockholders and economic speculators also paid higher taxes.  Because the Middle Class and American Labor both benefited, laborers became Middle Class. They could now save enough to qualify for a quality home mortgage which benefited the construction industry, the home loan industry, local and state tax revenues, local schools and the economy in general.  Because some of the corporate profits diverted from executive and rich stockholder compensation corporations could afford to negotiate health and retirement benefits for their workers and workers in turn had some excess income to save and invest in corporation stock.  Everyone prospered except for the very rich.

So what did the very rich do?  After all they are not stupid, they wouldn’t have gotten rich by stupidity.  They bought the political system.  First they began creating tax loop holds so big enough to drive through in their Mercedes, BMWs, Lexus, and Rolls Royce (Cadillacs, Lincolns and Chryslers became too American and commonplace for the rich).  They they started getting the graduated tax rates reduced so that the rich paid less.  When Congress was finally forces to pass lobbying and campaign contribution controls, the formed Political Action Committees (PACs) and when these faced controls, SuperPACs.  Then came tax breaks to facilitate overseas investments and provide special tax breaks for importing overseas corporate taxes.

Wealth began to concentrate at the top once more. Jobs began to move overseas to cheaper non-union labor markets, union busting became the order of the day and with it diminishing wage increases, sharing in the results of increased productivity, diminishing health and retirement benefits.  Next came those wonderful innovations the  401(k), the Individual Retirement Account (IRA) and the Roth IRA.  Corporations could now back out of the retirement benefits for labor and force labor to do without or provide their own, all at a time when the wages of labor were stagnant to the point of barely keeping up with inflation.  The result of increasing productivity were now all redirected to the rich investors.   More and more laborers found themselves falling below the Middle Class.  More and more of the Middle Class saw themselves borrowing and now pawn brokering to try to stay in the Middle Class.

As Recession cycles began to recur with wider and longer depressed periods, Congress tried to intervene by boosting the construction industry with easy home loans for the unqualified.  After all home construction is one industry that is almost impossible to export.  Easy loans by the unqualified meant home values temporarily soared and the rest is very recent history.

The Federal government with the complicity of big banking and big finance got federal laws controlling risky behavior removed in the name of “free markets”  and we reaped what they sowed: bailing out businesses that once again were allowed to grow too big too fail.  And when they failed who paid the bill?  YOU!   So did Congress bail out the financial industry?  Of course,  Did Congress break up the banking and financial giants that became “too big to fail” ?  Of course not.  They own the political system until we the people take it back.

So what needs to be done:

1) As Iv’e said before, we need a modern version of the Glass-Segal Act that was slowly dismantled and then repealed by Congress;

2) We need a revised income tax that is truly graduated to redistribute the fruits of labors production back to it’s rightful owners: labor and the Middle Class so that they can spend it to purchase all the products they produce;

3) We need to tax corporate profits earned overseas at a higher rate than domestic corporate profits to encourage corporations to produce domestically and to tax those profits in the same year they are earned.

4) We need to punish with severe tax penalties all businesses that hire illegal workers instead of wasting money trying to build ineffective border fences and border guards.  No country has ever been successful at stopping smuggling.  Spending large amounts of money trying to keep out people who need jobs is ridiculous especially since we may actually need some of those laborers when our economy is again running at full tilt.

5) The government needs to use the temporary increased tax revenue (those who pay the taxes will find ways to decrease tax revenues again, they always do) to improve infrastructure, make college education free for all who academically qualify in all public colleges and universities (a college education is now a must to be part of the Middle Class) and to lower government debt.

6) We must have political campaign reform.

7) We must do away with life time tenure for all political offices including the US Supreme Court (its 225 years overdue).

You Get the picture.  So what are you going to do about it? Hopeless?  Definitely not, not as long as you have a vote.  If a candidate does not support most of these reforms give him/her a pick slip.

DOC

Occupy Movement Needs Meaningful Achievable Goals

April 5th, 2012

Even with the relatively mild winter experienced by most of the US, it is now evident that Spring has finally arrived tornadoes and all.  But midwestern tornadoes are not the only changes in the wind we need to prepare for.

Now with the warmer weather, the Occupy Movement is making it’s initial feeble attempt at resurrection.  Each group in the various cities seems to have momentary different agendas.  This will achieve little any real goals.  What the movement needs is a centralized unified leadership and agenda.  This was what the TEA Party did before it started pushing a national agenda and reached political significance and power.  It tapped into the conservative and Middle Class discontent with big government and taxes.  The Republicans saw a conservative movement with some goals common to the Republican agenda and successful absorbed most of the political clout of this citizen grassroots movement.

The Occupy Movement needs to unify and tap into the growing discontent of an even larger segment if not the majority of the Middle Class, the Independents and the progressives: maldistribution of wealth, three decades of lack of progress in wages, a shrinking middle class, continuing conglomeration of big business and big finance, unfair tax policies, etc.  Suggested below are some agenda items that they should consider.

The Republicans seem to finally have decided on their Presidential candidate for November 2012 another rich multi-millionare with multiple homes, money in foreign banks and a history of dismantling American companies in order to save them.  Mitt Romney promises to bring modern business techniques to the federal government, to cut government spending, to dismantle “Obamacare”, to lower taxes, to balance the federal budget and to make things better for the Middle Class and working people.  I just can’t wait for when he promises to walk on water.  All his and therefore the Republican goals have one theme in common: the richest Americans will get the gold and working people and Middle America will get the shaft.

Now let me get this straight:

1) Modern business techniques of union busting are going to get workers better wages, benefits and retirement?  Whose kidding whom.  Are you so gullible that you believe such crap?

2) Shipping jobs overseas is good for wage earners in America here at home.  Sure it may mean that products can be sold cheaper because of foreign child labor, lack of job safety and anti-pollution standards and pitiful wages, but what good will that do the many unemployed and you when you become underemployed or underpaid and no longer have sufficient wages to make meet your food and grocery costs let alone enough to pay for a new computer, TV, or appliance?  How is our consumer economy going to grow more jobs when only the few rich have money to spend to consume?  Do you think that the conservatives who want to dismantle the cuurrent safety nets are going to erect new ones when you need help.  Come on, be real!

3) Maximizing profit for private business at the expense of the public (like high gas prices, subsidies for big business, special and low tax breaks for capital gains and corporate profits, worker wages that don’t keep up with inflation) will stimulate economic growth.  In spite of political claims that this will happen, history shows repeatedly that the opposite is in fact the truth.  As hard as it is to believe, higher taxes on the rich actually speeds up investment in new products, new facilities and more jobs.  It’s counter-intuitive but hears how it works from what I’ve read and business consultant I spoke with: when investors foresee higher taxes on their capital gains and incomes,, they, like you and I try to protect their assets from going to the government in taxes but the rich do it by reinvesting the money rather than using it to buy more cars, bigger homes, more expensive art work and other luxuries.  The reinvested money will earn more money where the cars, homes, most art work and other luxuries will actually loose value.  And history shows that higher taxes have almost always resulted in increased investment by the rich and greater prosperity for everyone.  So tell me again why do you think the Republic call for further cuts in taxes for the rich will stimulate growth in the economy?  We cut taxes for the rich in recent years and business investment and unemployment hardly changed.  So why do we keep giving more to the rich and expect a different result??  Trickle down economics my butt.  Hasn’t worked and probably never will.

4) Cutting federal aid to education and federal spending for scholarships will save money.  While the rest of the work and especially former third world countries like Communist China (the world’s largest producer of steel, the fastest computer and the fastest high speed trains) and Malaysia (the largest producer of pharmaceuticals) continue to spend more on their educational systems, American public schools deteriorate and college tuitions rise making it harder for the poor and Middle Class to realize the classical American dream.  The rich have the money to send their children to private schools and universities or public schools in school districts surrounded by very expensive home that generate high property tax revenues to provide excellent schools while the rest of us see our property loose value, our local property tax revenues decline and our public schools rot with deteriorating facilities and stressed our teachers subsidizing their classroom supplies out of their own so-so wages.  Do you really believe cutting government programs is a good think when it adversely effects the education and our future competitiveness in a globalized world?  We should be pouring money into our public school infrastructure and teach education and salaries in order to improve education for ALL our students, not just the rich.  We should make a college education free at all publicly supported universities for anyone who can pass a rigorous entrance exam  and remedial education free for those who can not pass the exam.  So again what is wrong with my thinking?

5) Lowering corporate taxes for profits made overseas so that the rich stockholders can get their hands on these profits at even cheaper rates the the average percentage of income taxes paid by people who earn their money by actual hard and sometimes dangerous work will be good for the American economy.  Lower taxes on foreign profits only encourages exportation of American jobs,  increases the incentive for  foreign investment at the expense of American industry, American infrastructure, American labor and American jobs.  So remind me again why this is a good idea for All Americans and not just the richest Americans and foreign laborers!

6) Reducing the healthcare safety net is good for America.  40% of American bankruptcies are caused by medical expenses. 40 million Americans had no health insurance before “Obamacare”.  Huge numbers of Americans especially women were denied access to health insurance before “Obamacare”.  So, women, why are you of all people still supporting the Republican effort to return to the way it was.  Don’t you like having access to health care and preventive services??  Or am I crazy?  Sure there are many things in “Obamacare” that need fixing because the only way they could get the program passed at all was to give concessions to industries that are making huge profits at your expense and to political interests that benefited from preventing certain desirable changes.  Do you really want to throw out the baby with the wash water and bath tube?  Why not just fix the bath tube and change the water?

7) It’s easy too claim there is too much government but the Gulf Oil Disaster occurred because their was NOT a SUFFICIENT number of government inspectors to keep British Petroleum (Yes that’s what BP stands for) a foreign company from cheating on the safety standards or to enforce their already documented violations.  But the Bush Republican administration cut the size of governement and industry cheated.  Do you think there might be a possible connection.  By the way, it was reported on TV that the BP valve that failed was made by Halliburton.  Does that name ring any bells??  It should.

8) American workers are overpaid and therefore American industry is at a disadvantage against foreign competitors.  Industries will always be at a disadvantage against those who use child labor, slave labor, dangerous and polluting industrial conditions.  So do you want to return to the American sweat shops of the early 1900s?

9) If Congress passes the Keystone pipeline legislation, gas will return to $2/gallon.  Who dreamt  up that fairie tale?  First lie, this new pipeline from the Canadian oil sands will be tapping into America’s own resources; well that might be considered true if you consider Canada as part of America.  Well technically it is in North America so it is part of “America” but these spin doctors make it sound like “America” means US resources.  That’s not true.  These “truth” tells would also have you believe that all the petroleum products produced will all and only be sold in the USA.  What would prevent the Canadian oil producers or the American companies involved and the refiners from selling all those refined oil products to the highest bidder overseas?  How much of our Alaskan oil is being sold overseas to Japan, China or any other foreign highest bidder right now?  Why are American gas prices so high if we are pumping all that Alaskan oil and only selling it in the USA?  I challenge Exxon and any other company producing oil in Alaska to make their sales records available to Congress and the American people.  I will be happy to apologize if 100% of the oil is in fact being consumed in the USA.   Would I like to see the Keystone Pipeline?  Yes, if it can be shown to be environmentally safe AND there is a monitored guarantee that all the oil and it’s refined products will only be sold in the US and Canada.  Do you agree?

Will I vote for Mitt Romney?  As a former Republican and conservative I will vote for another Republican when Hell freezes over!

Am I disappointed in President Obama and the Democrats?  Yes.

They did not fix the “too big to fail” problem.

Financial speculation continues fueled by bailout money.

They did not pass any legislation to correct the obscene income disparities between labor and management. Wealth continues to concentrate at the very top 20% and especially the top 1%.  The Occupy movement protests against the top 1% but offers no specific solutions that I have seen.

The Democrats did not enact a meaningful and fair graduated income tax.  In fact there is talk among the Republican for a new budget with even more tax breaks for the rich.  The Democrats did not change the tax law so that all income regardless of source is taxed at at least the same rate.  Instead some in Congress are discussing a Value added tax which would be regressive and a bigger burden for the poor and Middle Class than for the rich.

They did not remove the Social Security tax cap.  They did not enact a means test for collecting Social Security.

As far as the Supreme Court decision regarding the universal obligation to purchase health insurance, the fix is easy but getting the vote will be impossible if people elect a majority of Republicans to either house of Congress or a Republican President.  The fix:  Pass a new mandatory Medicare tax and enroll everyone in Medicare or use the new tax to issue vouchers for people to purchase their own health insurance from any company or a public option with the value of the voucher based on the prior health status and age of the recipient.  Use of the voucher would be voluntary but the value of unused vouchers would revert back to the federal treasury.  Congress has the right to pass universal taxes, ergo no Supreme Court challenge would be possible.

Well I’ve given the Occupy movement or any other politician ideas they can use if they want, no strings attached.  Does anybody care?  If you do you should pass the blog on to at least 10 of your friends and all of your Senators and Congress men or women.  The ball is nowin your court.  Do you care/

DOC

Who Started the Class War in America?

April 4th, 2012

No bullets are being shot, no missiles launched, no bombs dropped but anyone who doesn’t think there is and has been class warfare in America had better wake up!  It started in 1790 with Alexander Hamilton and his ilk who believed that societies should be run by the rich and educated.  This in spite of the fact that the American Revolution had been fought to purportedly establish, at least Thomas Jefferson thought in the Declaration of Independence, to establish a more perfect union dedicated to the proposition that all men (make that people) are created equal with the inalienable rights of life, liberty and the pursuit of happiness.  The original Confederation of States wasn’t working so a Constitutional Convention was held and the Federal Government was established as a representative democracy.  But there was one problem that would eventually (make that today) threaten to destroy our citizens right to control our government and its policies.  Hamilton believed that only the wealthy educated property owners should really run the country so he and those of like mind convinced the first Congress to establish a national bank that would control the money.  It would be run by bankers and other wealthy individuals who would be appointed by the President with the advice and consent of Congress.   This was supposed to insure checks and balances but time and experience has shown that when you put the tigers in charge of the zoo many animals will be at risk.

First Hamilton convinced Congress to assume all the debt from the American Revolution including all the state debt.  Reasonable on the surface.  But ever since 1790 that debt has been growing with a few brief intermissions at at a compounded interest rate of 6% until our combined federal, state, corporate and personal debt has now reached 70 trillion dollars.

Second, the government at the urging of the rich capitalists (I’m a capitalist so I’m not using this like a dirty word) was taught to believe that free markets are always the best way for an economy to work and that all government and socialist programs are wrong with no exceptions.

Third, the wealthy have convinced many in government and many private citizens that private industry can do it faster, better and cheaper that government “bureaucrats” (which they do use as a dirty word.)

Fourth, they have somehow convinced (I suspect with campaign money) our politicians that industry knows best; industry will treat labor fairly; that unions are bad and excessively demanding; that any kind of minimum wage is inflationary but skyrocketing executive salaries are not inflation; that worker demands for a fair share of the wealth that they produce is “class warfare” against the rich; that a graduated income tax is “class warfare”; that special lower taxes for income that is not earned by actual labor but by speculation (the rich prefer the terms investments and capital gains) (a rose by any other name is still a rose!) are fair and necessary; that lower taxes for the rich stimulate investment (the facts are that higher taxes on the rich usually stimulates the economy more; that providing low tax holidays so that investors can bring back foreign earnings at minimum tax is morally justifiable since it puts more capital into the American economy (to buy more luxuries and create more low tax capital gains wealth for the  already wealthy).  Need I go on?

The rich would have us believe that child labor was OK in America’s past.

The rich would have you believe that the union movement by labor to get safer working conditions, a work day the was shorter than 10-12 hours a day was selfish and unreasonable.

The rich would have you believe that the closed union shop was evil because it took away the owners “right” to hire scab labor and destroy the hard fought and earned benefits that the unions often gained with blood sweat and tears.

The rich would have us believe that putting more money in the hands of the poor, working  and middle class is not as good for a consumer economy that taxing the rich more and the larger groups of less wealthy less will actually put more money into circulation and produce more demand and result in more jobs and a more vibrant and sustained prosperity.

Somehow the rich like Mitt Romney having 4 expensive cars is better for the economy that 100 people using the same amount of money to purchase 100 cheaper cars.  Which produces more jobs making 4 expensive cars or 100 cheaper cars?  Somehow a billionaire owning 2 private Lear jets to travel to exotic foreign vacation spots is better for the American economy than 100o people having the same total wealth to spend on airline tickets and domestic travel to Disney World or the Gulf state vacation resorts.  Whose lying to whom?

Whats sad is that there are large numbers of people who not only accept this garbage economics but actually believe it.  They not only believe it, they join organizations and political parties that promote these misconceptions and help the elite get richer at the expense of the middle class.

I remember only too well when the California Governor Pete Wilson repeatedly told the citizens of California that state workers should not get cost of living raises because they were already being overpaid compared to people doing the same work for private corporations.  We were getting paid slightly better than private workers but ONLY BECAUSE THE REAL WAGES OF PRIVATE WORKERS WAS NOT KEEPING UP WITH INFLATION  and neither they nor us was benefiting from our increased productivity.  At least in our case the difference wasn’t being siphoned off into the pockets of rich investors and executives who saw their tax rates cut in 1/2 in the 1970s and again in the 1990s while their percentage cut  and absolute dollar amount of the gross domestic product was rapidly increasing to the point that the top 1% of the population was receiving 20% of the countries wealth, the top 20% were keeping 80% of the wealth while bottom 80% of the population was only getting 20% of the wealth.  Who was making warfare on whom?

If the only way to get the economic situation back to a fairer tax structure, fairer sharing of the fruits of labor’s efforts and increased productivity and more money for the large middle and labor classes to spend and return the economy to prosperity is class warfare than I say bring it on!  But the warfare must be lawful, peaceful and non-violent!!  2012 is a good year to declare a peaceful economic revolution.

What weapons do we have?

1) Votes.

Votes count more than campaign contributions.  Meg Ryan was the chief executive of eBay who tried to buy the governorship of California by spending a large sum of her personal fortune to get elected.  Our voters told her on no uncertain terms that our elected offices are not for sale.  Now you must do the same at the national level.

The Republicans are the party of the Rich, that’s why I am no longer a Republican after 30 years.  I’m a slow learner.  It took me that long to realize that all the protesting about welfare for the lazy was really a smoke screen for pushing through policies that allow the rich to get richer like special tax right-offs, lower tax rates, special investment credits and all the other accounting tricks are just ways for the rich to rip off an unfair share of the productivity of the real workers in America.

The TEA Party and Libertarian cries for smaller government have just enough validity to make them appealing so the rich have adopted their slogans to win your votes but the only reductions in government that you MIGHT see are reductions in any regulations or watchdogs that are in place trying to keep the amount of legalized economic gambling by the rich that could  inhibit a repeat of the free-wheeling anything goes speculation that brought America to economic ruin in 1929 and within a hair breath of a repeat of that disaster in 2008.

Vote against any candidate (incumbant or new, Republican, Democrat or any other party) who will not publicly pledge to support legislation that:

Breaks up the huge Wall Street financial conglomerates and banks such as BofA, Chase, etc.  We need a new Glass-Segal Act like the one that broke up these “too big too fail” institutions during the Great Depression.

We need a true graduated income tax that treats all income at the same tax rates.

We need legislation to compel corporate Boards of Directors to get stockholder approval for each and every  salary, and benefit before a contract can be signed with any executive or consultant.

We need a Constitutional Amendment forbidding campaign contributions or advertising for the benefit of any political candidate by any business, corporation or foreign entity or foreign individual and a limit on the total amount that can be given to or for any candidate, political party or Political Action Committee by any individual including the candidate for his/her own campaign.  The wealthy should have no financial advantage when seeking public office.

Lobbyists should be forbidden to meet in private with any political candidate or elected official.  All lobbying must be limited to public media adds such as newspaper, magazine, radio, TV, and Internet.

A president needs a legislature that will work with him/her but not necessarily the same political party.  We must avoid the kind of obstructionist, do nothing oppositions such as we saw from the Republicans and some Democrats over the last two years.

I am so angry at the recent Republican obstructionist tactics without meaningful alternate proposals that I plan to vote AGAINST ALL REPUBLICAN CANDIDATES in my area and for Democrats or other party members instead whichever puts forth the most reform minded candidates.

I wish I was younger so that I could run myself but who wants a 70 year old congressman?

DOC

Trial By Public Protest

April 3rd, 2012

I have watched with much concern the attention given by the major news networks and media to the Trayvon Martin shooting.  Recent American history has been plagued by Trial By the Media as newspeople and network executives compete for viewers and paid sponsors.  More and more frequently evidence is exposed and contaminated by the media as they attempt to hold trials and convictions on the evening news and contaminate potential jury pools.  The more the press and media can whip public “interest” and anger the better for program ratings and network incomes.  This has now evolved into large public protests and demands for arrests before sufficient facts are known as to whether or not there are sufficient grounds for arrest.

From what has been reported, the public, me included has been given the impression that the local police did not conduct a sufficient investigation into the shooting of teenager Trayvon Martin.  Public sentiment nationwide has been whipped into such a frenzy that the masses are demanding the arrest of the shooter regardless of whatever facts may or may not exist.  All this is apparently based on a garbled 911 cry for help.

I personally abhor the many instances of  racial discrimination that have occurred since 1865 and especially those that have occurred in my lifetime.  All shootings should be thoroughly investigated regardless of the race or ethnicity of shooter or victim or whether the victim survives or dies, the right to protection under the law demands it for the perpetrator and the victim.  When the police fail to do so they deserve to be chastised and forced to do their duty properly, justice demands it.

I wonder what Trayvon Martin would think if he saw the current mob demands for what borders on vigilantly “justice”.   The American minority community of people of color has suffered enough vigilanty injustice to feel some shame that they are now demanding the same for someone also of color, an Hispanic American.

Some have claimed, stupidly in my opinion, that Mr. Zimmerman can not claim to be a person of color or Hispanic because he is only partially Hispanic and a small percentage at that!  How ridiculous and short sighted.  What percentage African-American must a person be to consider himself/herself African- American?  It wasn’t that long ago that if you had ANY African “blood” (genes) you were African-American and could be put in chains as a slave if you could not prove you were a freeman.  How long ago was it that if you had any American-Indian (I prefer the Canadian term “First American” which is more accurate) “blood” you were an Indian and could be used as target practice with impunity.  Have we degenerated as a society to such a low point the those who experienced such horrible discrimination and abuse now demand discrimination and abuse against others.

Yes the African-American community has the right and should demand a thorough and unbiased investigation into Treyvon Martin’s death.  We as a society and our police owe him at minimum that much.

Yes, Mr Zimmerman has the right to be recognized as a member of a colored minority community if he so choses.

Yes, Mr. Zimmerman also deserves that the police conduct a thorough investigation of the shooting.

Yes, if sufficient evidence is found to justify a trial, Mr. Zimmerman has the right to a lawyer and a fair trial by a fair and impartial jury.

Yes, if Mr. Zimmerman is found guilty of an unjustified homicide he will deserve the appropriate punishment.

Yes, If Mr. Zimmerman is found innocent he deserves to go on with his life, which unfortunate he will not be able to do in his current community because of all the adverse publicity.  It may even be impossible to go on with his life anywhere in America because of all the adverse publicity without a change in identity for him.

Yes, Mr. Zimmerman faces de facto if not de jura double jeopardy for his actions because he can face a civil wrongful death suit even if found innocent in a criminal trial.

There are however several blatant legal issues that should be addressed regardless of the outcome of this one case:

1) The racial issue need to be put to rest FOREVER in America.  We MUST stop seeing victims or perpetrators as people of this race or not or this ethnic group or not.  WE ARE ALL AMERICANS.  Shooters should be seen simply as shooters and victims as victims and we and the law should act accordingly.  ALL prejudice must be laid to rest forever or we will never have true justice that we can all rely on and have faith in.

2) The law in all states should be changed to not only prohibit felons and those with a history of violence from possessing deadly weapons such as guns and hunting weapons such as bows and arrows but also include forbidding possesion of such weapons by all those with a history of a court order for anger management.  If you can’t control your anger what are you doing with a potentially lethal weapon in your possession.

3) The Florida Legislature and any other states with similar laws should carefully review it’s statues regarding interception and detention of suspected criminals by anyone other than a sworn ;=law enforcement officer or official.

4) We should look at passing a Constitutional Amendment forbidding the press from publishing anything other than the name and charges against anyone arrested until AFTER the charges are dropped or dismissed or the person is found innocent or guilty in a court of law.  One the trial and all appeals are completed than and only then should the press be allowed to publish any evidence, facts, or other information about the individual, their background, sentence or prior criminal record.  All information regarding the victims, crime, suspects, accused, charges, arrested, dismissal or conviction should remained privileged and protected by court order until after the case has been competed including all appeals.  Only then will the accused and the victim be assured that the procedures will be as fair as humanly possible.

Shame on the press for exploiting this tragedy under the false disguise of bringing me the news.

May Trayvor Martin rest in piece and my his family and Mr. Zimmerman all experience true justice for all. Hopefully that will still be the outcome in spite of all the exploitation and adverse publicity that has occurred and shame on those who have exploited this senseless tragedy for whatever personal, political. economic or group goals.  May God bless all of us with wisdom, understanding and tolerance.

I hope that it is not too late for this to occur.

DOC

Who Will Be the Republican Presidential Candidate?

February 12th, 2012

The field of Republican Candidates seems to have narrowed to four: Romney, Gingrich, Santorum and Paul, or has it?

In order to win the Republican nomination, the candidate will not only have to be attractive to the Republican conservative base which has been the emphasis so far, but also to the Republican moderates.  But the Republicans and Democrats have to also appeal to the Independents which number almost as many as the Republicans (even with their TEA Party allies) or the Democrats can muster on their own ilk.

The problem the Independents have is that no matter how large their numbers become they are not even a political party so can never nominate a candidate of their own. Furthermore, they are very diverse in their views and wishes possessing a mixture of conservative, moderate, progressive and liberal desires on their wish list.

The Republicans can not win without a large percentage of Independent voters.  So any Republican or Democratic Presidential hopeful will have to come up with enough Republican convention delegates without alienating the conservatives or moderates and at the same time cobble together enough Independents of very diverse views to win enough popular votes and Electoral College votes to win the Presidency.

There is also the problem of gaining enough votes for Republican Senate and House candidates to have enough Congressional votes to actually get an agenda not just promised but passed so that it can be signed into law. The biggest problem for President Obama was not winning the election it was trying to get anything introduced and enacted by a divided Congress (Republican House/ Democratic Senate).  Obama tried to use diplomacy and compromise and came across as weak when the Republicans stonewalled and refused to budge.  Of course the Republicans also had problems because they could not be seen by their conservative and TEA Party base as being willing to compromise and since they would not compromise or work with the President and Democrats in Congress, they froze themselves out of any opportunity for accomplishing any of their agenda.

Bottom line:  WHO EVEN GETS ELECTED PRESIDENT IN 2012 WILL HAVE TO HAVE ENOUGH “SYMPATHETIC” VOTES EITHER FROM HIS OWN PARTY OR FROM HIS OWN PARTY AND ENOUGH OF THE “OPPOSITION” TO GET LEGISLATION PASSED.  This is a very tall order.  First lets look at the four current Republican Candidates chances of winning the nomination, the general election, and winning enough congressional support to enact a legislative agenda as promised during the upcoming campaign.  We’ll look at the candidates in alphabetical order.

Newgt Gingrich has Congressional experience.  But he has “baggage’.  Not the silly multiple affairs and wives baggage that some major print and broadcast media has been blown out of proportion in their scandalous attempt to outdo the National Enquirer and Gerry Springer shameful coverage.  The real baggage he carries is his style in dealing with fellow politicians.  While a Congressional majority leader he is purported to have been about as diplomatic as Barbara Boxer during our most recent Congress.  With the degree of Congressional gridlock that has plagued Congress for the last few decades, arm twisting, threats and “pork” promises have often been necessary to get things done, but they don’t win friends, make powerful and long remembering enemies.  The Leopard can claim to have changed spots but most prudent observers will enter the cage with great caution, if at all, when the leopard is hungry (to accomplish an agenda and guarantee reelection or a legacy).  Many Conservatives and TEA Party members are not convinced.   Independents don’t seem to be rallying to his banner in states with “open” primaries.  Florida’s primary was a Gingrich disaster and could spell the beginning of the end.  Will he have enough delegate votes to win the Republican nomination win the convention starts?  Very doubtful.

Ron Paul is honest enough to admit that he is very unlikely to win enough delegate votes to win the Republican nomination.  In fact he ran as an Independent in the past.  So why doesn’t he bow out?  Simple.  If Ron Paul can win enough delegate votes to prevent any of the other candidates from getting enough delegate votes on the first or second or even third convention balloting,he will become a power broker able to trade his delegates in exchange for setting some of the Republican platform and agenda for the next Congress.  Ending the Fed, one of his pet projects, closing many overseas military bases, ending overseas wars, minimizing our foreign aid subsidizing of our fair weather foreign allies, balancing the budget and an end to under the table federal borrowing by the Federal Reserve could become real possibilities.  Ron Paul is in the race to broker some of the policies he believes would strengthen American, not because Ron Paul really thinks he can when (not that he wouldn’t like to).

Mitt Romney, the Republican Big Business and Wealthy American Republican candidate is obviously popular with big business (the Super PAC owners) but with the most conservative of Conservatives.  Many American conservatives like him because he preaches running government like a business.  He preaches this as a campaign slogan but he has held public office and should realize that such language and goals is dishonest.  I worked in the private sector for 20 years, had my own business in the private sector for 20 more years and worked in state government for 15 years.  There are many fundamental differences between running a government and running a business:

1) Business must show a profit or the stockholders will show you the road; government must engage in many activities where a profit is impossible:  prisons, law enforcement, courts, wars, border security, military protection, foreign diplomacy, court ordered “benefits” for criminals, the poor, the homeless, foster children, orphans, disabled, etc, building and maintaining infrastructure for the benefit of the public and business, oversight of business and financial institutions to prevent abuse of the public trust, public safety including medications, food, toys, chemical production and usage, and the list goes on and on.  Could and should government be run more efficiently, perhaps but even here there are problems.  let me give a few examples.  Let’s say a program gets started to monitor drug safety and effectiveness.  You do want save and effective medicines.  Do you think you can r=trust the manufacturers to be honest without government oversight?  Just turn on your T,V, and count the number of adds for chemical, plant and animal products that are being advertised by the maker as not being medicines or for the treatment of disease but they will cure blemishes from your skin, remove wrinkles, make you look younger, cure or prevent constipation, make your cholesterol go down, lower your blood pressure, prevent diabetes, reduce your appetite, reduce your weight, reduce your “cellulite”, etc.  Need I go on?  Yet under current law NO ONE is checking to see if these claims are true, these products are really effective or safe because they are not rated currently as drugs.  But listen to the screaming directed toward the FDA and Department of Agriculture when apple juice from China is found to have higher levels of Arsenic than is allowed in the US or when foreign paints has harmful chemicals/.  And how about the opposite when European countries ban chemicals in plastic baby bottles that are allowed in the US because of powerful US lobbies.  And what about the FDA trying to ensure the safety and efficacy of drugs by demanding adequate testing before they are licensed for sale but then the AIDS community complains that it is taking too long for drugs to get to market.  The public wants it both ways.  How often do private businesses have to make policy decisions based on public demand.  The banks sure didn’t during the recent housing collapse.  And what about Mitt Romney’s anti-abortion beliefs in the face of political pressure and compromise when the Massachusetts passed it’s state medical care program.  Why wasn’t Mr. Romney able to run Massachusetts like a business and just do what he wanted as Governor.  Because Governor is not the same as CEO and the legislature is not like a Board of Directors and Massachusetts is not a business, it is a government with the mechanisms and legal and public constraints of a representative republican form of government.  So let’s stop pretending:  GOVERNMENTS ARE NOT LIKE BUSINESSES AND CAN NOT BE RUN LIKE BUSINESSES; GOVERNMENTS ARE GOVERNMENTS AND MUST BE RUN LIKE GOVERNMENTS!

Can Mr. Romney win enough delegates to walk into the Republican Convention with all the votes he needs to win the nomination on the first ballot?  Gingrich, Santorum and Ron Paul are working hard to prevent that possibility.  Why?  Obviously because they thing they have a better chance of beating President Obama.  It will be interesting to see who wins. Mr. Romney seems to be having a hard time convincing moderate republicans and Independents that he can win the Presidency.

Rick Santorum is an interesting candidate summed up best by the label the SWEETHEART of the RELIGIOUS RIGHT.  Can you just see the pro-abortion, pro-birth control, women’s right advocates shoving each other aside to rush into the poles to vote for him?  Beside the religious right what large voter groups are likely to vote for him.  Recently the talking heads on TV made a big think out of the fact that he won in three state caucuses but made little of the fact that these three VICTORIES got him exactly ZERO convention delegates.  Way to go Rick!  Keep winning these kinds of votes and you will soon be broke and have no chance at victory.  He has very few delegate votes, a very small campaign fund, no Super-PAC and no broad supporter base among Republican or Independents.  Do your really think he can win?  Sorry Rick you need to wish upon another star.

With all the negative campaigning of Romney’s Super-PAC, the Republican candidates are all starting to look like Rocky Balboa in Rocky I.  Comebacks like Mr. Balboa’s are usually fictional and only seen in the movies.  In addition the Republicans are not only beating each other up, they are feeding the Democrats a huge arsenal of information to use in the general election.  Bad blood is bound to develop when so much negativism abound in the primaries.  In addition, the American public wants discussion of how each candidate plans to REBUILD AMERICA NOT HOW EACH PLANS TO DENIGRATE HIS OPPONENTS.

If the Republican primaries are any indicate what we can expect in the general elections, American is in trouble.  We want to hear POSITIVE CONSTRUCTIVE agendas not NEGATIVE CHARACTER ASSASSINATIONS.

So who will be the Republican Presidential Candidate?  As far as I am concerned, the best thing that could happen at the Republican convention is three or four ballots without any candidate getting enough vote to win the nomination.  Then the Republicans can look for a fresh unbloodied candidate with a good political track record of effective government.  If they want a Conservative they should look at the New Jersey Governor and if necessary beg him to reconsider and become the Presidential candidate.  Can he win.  Who knows, but I’m not putting my money on any of the current Republican hopefuls.  For the first time in years i may vote for the Democrat for the second election in a row and vote against all incumbents in Congress they have been useless for the last four years why give them four more.  Let’s elect  Congress where both parties have a majority in the same party as the President like they do in Parliamentary governments like Great Britain which seems to function more effectively than we do.

DOC

 

The Occupy Movement Is Self-distructing

January 30th, 2012

In the beginning I, like many other Americans in the 99% hoped that the Occupy movement would take steps similar to those of the earlier TEA Party movement and organize along peaceful protest lines, with moderate, reasonable leadership and achieve political changes that would result in greater political and economic equity in America.  Thoreau wrote about the obligation and power of peaceful civil protest in bringing about political and economic justice.  Ghandi proved beyond a doubt the power of peaceful protest by winning independence for England’s biggest colony, India, the second largest population in the world.  Multi-lingual, mu;ti-ethnic and multi-religious India achieved independence and a thriving democracy without firing a shot.

America is in need of political and economic reform for greater justice and fairness but the Occupy movement which as recently as last Thanksgiving was gathering momentum, public notoriety and sympathy has now deteriorated as a group of lawbreakers including violent individuals, looters, polluters, property destroyers, police assaulters, that includes communist, neo-nazis and other thugs which have been anathema for generations to law-abiding, moral, middle class and working poor.

The Occupy movement appears to be without effective leadership, rudderless, without defined goals, a defined program or the means to accomplish any positive goals.  Any group of protestors without positive leadership and a program of positive clear goals can rapidly deteriorate into gang of lawless, destructive self-seekers.  Such groups not only have no popular they rapidly become the target of popular requests for their suppression and destruction by legal means.

Instead of establishing groups with defined leaders and goals before organizing their protests, Occupy seems to have had disorganized protests before they had leaders and goals.  Belatedly people tried to organize the protests and define the goals.  Meanwhile fringe groups such as the communists and neo-nazis have tried to gain attention by calling attention to themselves.  The “media” in the meantime seized on the participation of these very small groups of rabble rousing fringe groups which ultimately oppose and suppress the fundamental founding principles and supporting pillars of American Freedom (individual equal rights, free speech, fair courts, fair distribution of wealth based on work, creativity and innovation) and give these very small minority groups undeserved publicity and mislead the public into believing  by innuendo that these small minorities are important parts of the Occupy movement which they are not.

To add fuel to the fire of public mistrust of the Occupy movement the repeated violence, arson, confrontations with policy, episodes of public urination and looting have irrevocably destroyed any chance that the Occupy movement can now win enough public support to achieve any meaningful positive goals.

My suggestion to those who would espouse to lead any movement to social. political and economic justice is to start over.

1) Those who would be leaders for a peaceful and positive movement need to step forward.

2) These leaders need to join together and hold a leadership convention to define goals, create organized peaceful protests like the TEA party organizers did.

3) They need to organize a political party like the American Middle Party with defined principals and goals.

4) They need to target their protests to venues that count.  Protesting in front of Wall street in order to gain reforms of the financial system is about as useful as diabetics protesting in front of a candy store hoping the owner will close up shop.  The vehicles of power in America are state legislatures, Congress, the White House and the Supreme Court.  This is where PEACEFUL PROTESTS must occur if you wish to get attention and results.

5) Political candidates must be found and financially, by votes and by publicity helped to gain elective office.  Only politicians who can vote on legislation can effect change (that will benefit the 99%) on Wall street, in corporate board rooms, in the courts and in financial institutions.

6) Most of all Constitutional changes must be enacted for the public to regain control of the courts, Congress, the Executive Branch, the election processes and ultimately the political, judicial and economic systems in America.  (read some of my other blogs to understand why).

IT’S TIME FOR THE 99% TO ST

What Will Happen If Social Security Goes Broke?

January 28th, 2012

Many Senior citizens and many working younger individuals wonder what will happen to them if the Social security Trust Fund goes broke.  When Social Security was established during the administration of Franklin D Roosevelt, the Social Security Trust Fund (SSTF) was built by FICA taxes collected half from you and half from your employer.  Remember well FICA taxes being taken out of my paychecks back in 1955 when I got my first job as a dishwasher and later cook at the age of 14 and every year thereafter.  The tax was relatively small compared to today.  It was thought that the original tax rate would be enough to support those who survived to retirement.  This assumption was based in part on the fact that you could not collect full benefits until age 65 and the average life expectancy for men was less than 59 and when less than 62 when Social Security started.  In simple language less: it was expected that less than half the people who put FICA taxes into the SSTF would ever live to collect back even a dime of their money.  What the creators of this social security safety net failed to anticipate was the dramatic prolongation of life that has resulted from better nutrition, better job safety, better life styles and especially advances in health care technology, procedures and practices.

Social Security taxes have been raised from time to time, but the raises have been inadequate because raising taxes is always politically unpopular.  The cap (if you reach the cap level of earnings, you don’t have to pay any FICA tax on earnings over the cap) amount for the FICA tax has also been raised but inadequately to meet the anticipated increased withdrawals from the SSTF.  The latest gimmick has been to slowly raise the age at which SSTF payment can start.   But many experts agree that none of the steps taken to date have been adequate to cover future withdrawals as the baby boomers, the baby boomer echo population and a general increase in older people draw out SSTF payments.  Even if a person does not start to withdraw SSTF payment until age 67 instead of 65 as is the case under present rules people will commonly collect for 25 to 40 years based on current life expectancy.  That means many people will contribute while working from age 25 to age 67 (42 years) and collect for almost as many years in retirement as they worked.  Due to inflation and political pressures, these retirees will expect to receive more money per month from the SSTF than they paid in FICA taxes per month while they were working.  Even if the United States maintains it’s present birth rate and it’s present immigration rate it is likely that within a few decades there will be almost as many people collecting FICA as paying FICA taxes.  Will the workers of the future be willing to pay FICA taxes per month equal to the monthly payment to retirees?  Highly unlikely.  So where will the needed SSTF revenue difference come from?

1) Retirement age will have to be raised further as people live longer and are physically and mentlly capable of working;

2) FICA taxes will have to be increased more;

3) Means criteria will have to be imposed meaning that rich people with incomes above a certain level will not be able to collect SSTF money even though they paid in since their level of wealth will be more than adequate for their needs and therefore the will not require the SS safety net.

4) Can business absorb higher employer contributions. especially small businesses?  There is bound to be some adverse effects on business growth and consumer prices as the cost of doing business goes up in response to any higher taxes.  Ultimately all tax increases impact consumer prices.

5) Federal tax revenues will need to be used to supplement the SSTF.  This means someone’s general federal taxes will be used.  Should that someone be everyone using  a single federal tax rate for everyone thus disproportionately putting the tax burden on the poor?  Should the extra tax burden fall primarily on the Middle Class?   The Middle Class has in general more discretionary money than the poor but for decades Middle Class incomes have been stagnant while inflation eats away at the Middle Class standard of living.  Who does that leave?  Like it or not, sooner or later, the rich, who have the largest amount of discretionary income will have to pay more.  They will continue to fight tax increases using their super-PACs to gain Congressional votes but eventually the Middle Class and the Grey Panther senior citizens will wake up to the necessity of raising taxes on the wealthiest 1% of Americans.  The MIddle Class, the working poor, and the growing number of senior citizen will always have the overwhelming majority of votes and as they become more aware of their needs, their voting power, and their disenchantment with the increasing maldistribution of wealth and political power in American they will rise up in voter revolt and demand the necessary changes in the political system, the tax system and the economic system to demand the necessary changes for care of our aging population, the working poor and for a more equitable distribution of wealth based on labor’s contribution and increased productivity.

American society and it’s political and economic systems will need to find a better balance between capitalism and social fairness or capitalism will suffer the consequences.

IT IS ONLY A MATTER OF TIME.

DOC