Change I Could Believe In


photo credit: jasoneppink

Back in October I wrote about the dangers of a crisis mentality and tried to show that the abuse of crisis was not a one-party trait. I see that Will Wilkinson did a better job of showing that this month in Let the next crisis go to waste:

The Aughts began in crisis when the second plane hit the second tower on Sept. 11, 2001. The Bush administration, loath to let a serious crisis go to waste, managed to parlay the nation’s alarm and credulity into an ill-conceived invasion of an entirely unrelated country, wasting over a trillion dollars and many tens of thousands of lives, all while losing control of the fight in Afghanistan and failing utterly to bring down Osama bin Laden.

Bush’s botched attempts to capitalize on crisis—the ugly aftermath to which Obama is heir—might have made an alert leader wary. But instead, Obama set up shop in the Oval Office and proceeded immediately to use crisis as (Emanuel’s words again) “an opportunity to do things you’d think you could not do.”

Rather than acting as a prudent guardian of the public good in a time of economic turbulence and hardship, Obama and the Democratic Congress have hurried to check the boxes on their partisan wish list precisely when the nation most needed a restorative break from transformative ambition.

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Taxes: Supply vs Demand

The bulk of the discussion at the legislative town hall meeting last week was focused on fiscal issues of one kind or another. One thing that was briefly touched on was the potential return of sales tax on unprepared food. I have always been a fan of not having that tax, because of its supposedly regressive nature and because unprepared food is generally what I spend my money on, and I see no reason to volunteer for higher taxes on it. A couple of statements in that brief discussion got my brain thinking about some different aspects of tax policy.

One statement that someone made was that when the tax on unprepared food was eliminated the stores simply raised their prices accordingly so that the savings went into their pockets rather than taxpayers. That didn’t strike me as accurate, but even if it was accurate it is no excuse to reinstate the tax – the stores would let consumers absorb the taxes on the now higher prices rather than lower the price to accommodate the tax.

Sen. Liljenquist mentioned that people don’t tend to buy luxury items in down economies. When combined with the fact that our expectations fo government tend to increase in down economies I saw why governments tend to grow endlessly – there is generally an inverse relationship between our demand for government services and our ability to pay for them. When times are tough we demand more and politicians do their best to oblige us. When times are good we tend to expand government in areas that were not previously considered crucial by eating into any taxes that exceed our recession-limited budgets. When times become lean again the once-discretionary programs are viewed as essential and demand greater sacrifice from citizens to maintain the programs that would have been considered outrageous in the previous downturn.

From this perspective it makes more sense to favor regressive or at least “fair” tax schemes where those with the least ability to pay also have a vested interest in the tax rates so that they are less likely to get extravagant when times are generally better and so that the tax revenue is generally more stable. It is simply foolish to base our most essential services on revenue sources that are unavailable when the services are crucial.

I’m not trying to argue that luxury goods should be tax-exempt, but if they form the basis of our tax revenue for essential services we will always be in for gut-wrenching decisions whenever their is a dip in our economic outlook.

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Defined Benefit Pensions: A Failed Experiment


photo credit: inspecie.co.uk

After the town hall meeting I attended on Wednesday I have been thinking about pension plans generally. The state of Utah is looking at changing their pension offerings for new employees to save the state from future financial ruin. I have seen other companies go through that process already. As a nation we have seen the cost of defined benefit pensions contribute mightily to the downfall of GM and Chrysler as well as having a hand in the struggles throughout the airline industry not so many years ago.

As I thought about all these examples I realized that even a fully funded defined benefit pension program is a gamble for any organization. Employees like the security, but it is an inherently risky proposition to offer such a plan.

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A Current Example of Being a Good Legislator

Last night I attended a town hall meeting held jointly by my state senator, Sen. Dan Liljenquist; my state representative, Rep. Becky Edwards; and the neighboring district representative in Bountiful, Rep. Sheryl Allen. I came away from that meeting with a number of impressions that I will be sharing in the coming days, but the one I wanted to share first was what a good example Sen. Liljenquist was of a legislator as a communicator, specifically in communicating with his constituents on an important issue.

Almost as soon as the meeting was opened up for comments and questions from those in attendance it became very clear that a majority of the people there were public employees who were not very thrilled with the work that Sen. Liljenquist has been doing to change the pension program for state employees. They expressed their disappointment with the directions he was going and their concerns with the future ramifications of the changes the he is advocating.

He listened calmly over and over but as he spoke it was very evident that he had put a major investment of time and energy to arrive at the best available solution. He politely but decisively explained why the changes were necessary and what he was doing to protect current employees and the fiscal future of the state.

I don’t know if many people at the meeting were swayed as he spoke, but I very much respected how he tackled this difficult issue head on and did not bend to the myopic perspective of some vocal constituents by choosing the irresponsible option of punting the decision to the future.

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“Whole Foods” Republican


photo credit: ilovemypit

Nearly three years ago I publicly wondered where I fit politically. Since then I have solidly concluded that the Republican party is the best fit for me, but now I have found a term for my general political view – I’m a Whole Foods Republican who Michael Petrilli describes as:

independent-minded voters who embrace a progressive lifestyle but not progressive politics. These highly-educated individuals appreciate diversity and would never tell racist or homophobic jokes; they like living in walkable urban environments; they believe in environmental stewardship, community service and a spirit of inclusion. And yes, many shop at Whole Foods . . .

What makes these voters potential Republicans is that, lifestyle choices aside, they view big government with great suspicion. There’s no law that someone who enjoys organic food, rides his bike to work, or wants a diverse school for his kids must also believe that the federal government should take over the health-care system or waste money on thousands of social programs with no evidence of effectiveness. Nor do highly educated people have to agree that a strong national defense is harmful to the cause of peace and international cooperation.

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How Do You Solve a Problem Like Haiti?


photo credit: United Nations Development Programme

These days everybody wants to help the poor people of Haiti – and that’s obviously a good thing but when I think about Haiti it makes me wonder what the proper course of action is for outside nations to help that struggling country. I’m not talking about the proper course of action to help after the earthquake last week – that’s relatively simple to answer: get aid in supplies and personnel on the ground quickly to restore order and save lives (even though it’s not an easy task). I’m talking about the real fundamental problems that have been plaguing the nation of Haiti as demonstrated by their history of the last 20 years.

In the last 20 years there have been four regular elections – the winner of all four has alternated between Jean-Bertrand Aristide and his good friend René Préval. As far as I understand they never ran against each other so this is not a matter of oscillating between political parties. Both times that Aristide was elected he was later exiled. The first time he was eventually returned to power thanks to U.S. intervention – the second time it was the U.S. that sent him into exile. Hence my question – what is to be done for Haiti?

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Ensuring Personal Independence

Last week Charles D. left a short but challenging comment stating:

I will be interested to read what steps you believe one can take to insure personal independence in the event of an economic collapse.

Today I will attempt to specifically describe what we can and must do to ensure that we are not utterly dependent on society. As I said before, I am not advocating that people should become hermits or dissociate themselves from society – in fact I advocate the cultivation of connections within society. On the other hand, when push comes to shove I am ultimately responsible to provide the necessities of life for me and my family and it is up to me to make sure that I do not fail due to a failure by someone else.

Since feeling the challenge of accurately addressing Charles’ question I ran into a reference to the book How to Sew a Button: And Other Nifty Things Your Grandmother Knew. I think the title alone is descriptive of what I had in mind – being able to do for yourself or do without in as many things as possible. Basically, you should go through the following flowchart for everything you use and find a way to end up on the right side of the chart.

This gets down to some very basic things, like electricity and the foods you eat. If you are dependent on electricity you should be figuring out how much you need and looking for ways to produce it. For food production you need to have the skills and the resources necessary to produce a minimum supply for your needs

Thankfully you don’t have to be entirely alone. One of the things that you can do is cultivate a community of people you know who are willing to pool their skills and resources to produce their combined needs. For the most basic things you should find ways to produce, or actively contribute to the production of the things you are dependent on. For other things that you could live without but would prefer not to, it might be acceptable to be dependent on a member of your personal community to produce that particular thing, but you must be prepared to offer something of value in return for their production.

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Strong National Defense for the American Dream

Regarding strong national defense in his Contract for the American Dream Congressman Chaffetz reminds us:

The men and women serving in our armed forces are the best in the world. They can accomplish anything they are asked to do, if they are given the proper resources and clear rules of engagement.

He believes that we should be working towards:

Imagine the best equipped strategic strike forces rapidly deployed at a moment's notice to respond to the national security interests of the United States of America. Also, imagine a well compensated military that cares for the military families, now, in the future, and especially when wounded.

He thinks this will take us there:

  • Dedicate at least 4% of our nation’s Gross Domestic Product (GDP) for national defense spending.
  • Secure our borders, enforce our current immigration laws, and reject amnesty for those who are here illegally.
  • Adopt a “Go Big or Go Home” approach to our overseas military presence. We must have the best foreign intelligence, human and electronic.
  • Support an “all of the above” national energy policy that advocates rapid development of renewable energy, clean/green energy, and the use of our various natural resources and nuclear capabilities. Recognize that energy independence is vital to our national security.
  • Keep Guantanamo Bay open and continue with military tribunals.
  • Sustain the Second Amendment, the right to bear arms.
  • Support Veterans by honoring all commitments made to them.

My reactions:

  • Having a flat rate dedicated to defense might be better than our current what-can-we-get-away-with approach. Whether 4% is the right rate is up for debate.
  • We need to secure our borders, but that will probably require a long discussion about what we believe about immigration and then a complete overhaul of our immigration laws. Then we would need to strictly enforce those immigration laws once they are in line with our immigration beliefs.
  • “Go Big or Go Home” might help us be more careful about when and where we “go.”
  • “All of the above” is definitely the right energy policy.
  • Keeping Guantanamo Bay open is not helping our national security in any measurable way.
  • We should sustain basic rights – obviously including the Second Amendment.
  • We should honor all our commitments and our veterans have done the most to warrant making those commitments to them than any other group – certainly they have done more than most of our members of Congress.
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Accountability for the American Dream

As far as Accountability in his Contract for the American Dream Congressman Chaffetz lists our sitation as:

Americans have lost confidence in their elected leaders and the direction of the country as a whole. We are being governed by a “nanny state” mentality that is blanketing the country with the misconception that the government can and should solve all problems.

He envisions the goal as:

Imagine an atmosphere of personal responsibility where individuals took control of their future and worked hard to improve their lives. Restoration of confidence in the government is possible through true openness and transparency in all facets of government operations.

To achieve that goal he proposes:

  • Fire the Czars and adhere to the procedures under the Constitution requiring Senate confirmation for such leadership positions.
  • Apply all laws equally to Congress.
  • Require Committees to post all proceedings on the Internet within 24 hours. Allow 72 hours for Bills and Conference Reports to be publicly online prior to a vote on the House Floor.
  • Prohibit Members of Congress serving on Appropriations and Ways & Means from seeking earmarks.
  • Require that 100% of all campaign donations be filed with the Federal Election Commission for public review.
  • Attack the rampant waste, fraud, and abuses in Medicare and Medicaid.
  • Deny the passage of “card check” and participate in labor law reform.
  • Ensure that E-Verify is fully deployed and mandatory for hiring an employee.

My thoughts on his steps toward the goal:

  • Sounds more like a sound bite than an real effective step in the right direction.
  • What does this mean?
  • This couldn’t hurt.
  • This would make those committee assignments much less desirable but if the rest of our Representatives can still seek earmarks little will have been accomplished.
  • I like it.
  • Vague.
  • Vague.
  • I’m not sure that E-Verify is all that it is cracked up to be. I fear that it will be more expense than value.
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Limited Government for the American Dream

On Limited Government in his Contract for the American Dream Congressman Chaffetz lists our situation as:

The government is omnipresent in our lives, restricting our basic liberties. The proper role of government is a strictly limited one. We recognize that the States created the federal government. The federal government did not create the States. Further, it is not the government that will create jobs, wealth, or propel the United States of America to reach its fullest potential. It is the American people who will drive America forward.

He suggests that our goal should be:

Imagine a federal government that recognized it could not solve every problem. Imagine a government focused instead on the most important federal roles, such as national defense. Individuals should have the freedom to succeed or fail in this country. It is not the government’s role to stand in the way of either outcome or to choose winners and losers.

To achieve this goal he recommends:

  • Repeal TARP and commit to no more “stimulus” bills that are merely a ruse to grow government.
  • Appoint a bi-partisan “Sunset Commission” to identify at least 100 federal departments or programs recommended for elimination by December 31, 2011.
  • Reduce the corporate income tax to a flat 10%. This will eliminate the wide array of corporate loopholes, incentivize business in the U.S.A., and simplify the tax code.
  • Reject the “Cap & Trade” scheme and repeal all EPA funding related to carbon policy.
  • Sell back to private ownership the three million acres of federal land identified under the Clinton Administration as having no federal purpose.

My thoughts on those steps is as follows:

  • No more stimulus is a great idea.
  • A bipartisan commission would only identify 100 departments by having half the commission identify at least 49 departments or programs and then trade those with the 49 other “crucial” departments or programs identified by the other half of the commission as recommended for elimination. Added to the two departments or programs that the majority could honestly agree on they would scrape together the recommended 100 – none of which will actually get eliminated. Mmmm, sausage.
  • As I said before, a flat tax rate without loopholes allows the private portion of the economy to act with more confidence.
  • All of our government “green” legislation and policies are more political than scientific. It’s too bad that our government can’t stick to facts and let opinions sort themselves out instead of the other way around.
  • The government should sell off any federal land that has no federal purpose.
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