This reference term that we use to title our essay today was made famous as a consequence of a speech given by retiring 34th US president, Dwight David Eisenhower in 1961. There was a lot more to this brief speech than a warning about the military industrial complex. First we present highlight phrases from his speech:
• “…there is a recurring temptation to feel that some spectacular and costly action could become the miraculous solution to all current difficulties. But each proposal must be weighed in the light of a broader consideration… balance between actions of the moment and the national welfare of the future. Good judgment seeks balance and progress…” Eisenhower is explaining the fundamental of setting priorities and making choices.
• “…we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations. “In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.” Eisenhower warns about a bureaucratic monster that will run its creators; not the other way around.
• “…we -- you and I, and our government -- must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.” These comments are self explanatory and immensely prescient about our fiscally promiscuous ways.
Here are three full excerpts from Five Star General Eisenhower’s talk:
Excerpt #1 (This excerpt deals with self discipline needed to maintain our freedoms)
“Crises there will continue to be. In meeting them, whether foreign or domestic, great or small, there is a recurring temptation to feel that some spectacular and costly action could become the miraculous solution to all current difficulties. A huge increase in newer elements of our defense; development of unrealistic programs to cure every ill in agriculture; a dramatic expansion in basic and applied research -- these and many other possibilities, each possibly promising in itself, may be suggested as the only way to the road we wish to travel.
But each proposal must be weighed in the light of a broader consideration: the need to maintain balance in and among national programs -- balance between the private and the public economy, balance between cost and hoped for advantage -- balance between the clearly necessary and the comfortably desirable; balance between our essential requirements as a nation and the duties imposed by the nation upon the individual; balance between actions of the moment and the national welfare of the future. Good judgment seeks balance and progress; lack of it eventually finds imbalance and frustration.”
Excerpt #2 (This excerpt deals with creating a Frankenstein monster that rules its creators)
“A vital element in keeping the peace is our military establishment. Our arms must be mighty, ready for instant action, so that no potential aggressor may be tempted to risk his own destruction.
Our military organization today bears little relation to that known by any of my predecessors in peacetime, or indeed by the fighting men of World War II or Korea.
Until the latest of our world conflicts, the United States had no armaments industry. American makers of plowshares could, with time and as required, make swords as well. But now we can no longer risk emergency improvisation of national defense; we have been compelled to create a permanent armaments industry of vast proportions. Added to this, three and a half million men and women are directly engaged in the defense establishment. We annually spend on military security more than the net income of all United States corporations.
This conjunction of an immense military establishment and a large arms industry is new in the American experience. The total influence -- economic, political, even spiritual -- is felt in every city, every State house, every office of the Federal government. We recognize the imperative need for this development. Yet we must not fail to comprehend its grave implications. Our toil, resources and livelihood are all involved; so is the very structure of our society.
In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.
We must never let the weight of this combination endanger our liberties or democratic processes. We should take nothing for granted. Only an alert and knowledgeable citizenry can compel the proper meshing of the huge industrial and military machinery of defense with our peaceful methods and goals, so that security and liberty may prosper together.”
Excerpt #3 (This excerpt deals with fiscal responsibility and not burdening America’s youth)
“Another factor in maintaining balance involves the element of time. As we peer into society's future, we -- you and I, and our government -- must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.”
TheFundamentals highly recommends that you read the entire brief speech at: http://www.h-net.org/~hst306/documents/indust.html
We post these speech excerpts and reference because it is a profound reminder of a time when America was able to find and elect real leaders to its high positions of power. We had lots of problems back then also. But the leaders didn't just blame each other. They made choices that included doing without. We must return to TheFundamental values, beliefs and standards of these men and women if we are to provide future generations’ opportunities similar to those provided past generations. We must stop this culture and the political posturing that demands “to live only for today.” We must stop grasping for the “…recurring temptation to feel that some spectacular and costly action could become the miraculous solution to all current difficulties.”
These words were spoken just 50 years ago. General Eisenhower grasped, embraced, lived and reminded us Americans of fundamental values.
It is time for us to heed this advice. It is time for us to be responsible Americans. When Americans embrace responsibility, they will also find responsible leaders.
Wednesday, September 15, 2010
Tuesday, September 14, 2010
Falling Into bin Laden's Trap
About a month ago, we posted a brief introduction and link to an article written by Pat Buchanan that cogently focused attention of the combined problem of too many government workers and too much federal assistance to keep them employed while bypassing the federalism concept of making the states fiscally responsible for their own financial affairs. It was an excellent article. Well written. And we linked to it because TheFundamentals sees no point in reinventing the wheel. If someone else can say and communicate and get the message transmitted, we will bring attention to their work.
Today, we repeat this process but on a very different topic. The article is written by a former newsperson and TV personality – Ted Koppel. It was published last Sunday in the editorial section of the Washington Post. We present it today in lieu of an essay we were going to post today based on General and President Eisenhower’s speech about the military/industrial complex. We will print our own essay later this week.
Now, to Koppel’s article, entitled, “Nine years after 9/11, let’s stop playing into bin Laden’s hands.” This article is worth reading by anyone who wishes to enter the discussion about measured and appropriate response to threats and attacks. We all know, have lived through, the significance of the US response to 9/11. We know only too well the impact on our deficits and debt of this response. We know only too well the fear based reactions that we can see every time we go to the airport, or try to find a parking place in a downtown area, or enter a government building. We also know the wide reaching impact when we renew our driver’s license or open a bank account. Some families know it with great pain and loss because their military family members did not come home from Iraq or Afghanistan. We at TheFundamentals do not wish to tarnish their loss or their sacrifice with these comments but we do think it is time to reconsider just how much loss of life and freedom and how much cost and militaristic bureaucratic activities we as a nation wish to endure as a consequence of suicidal terrorists, past and present.
Mr. Koppel's article is available at http://www.washingtonpost.com/wp-dyn/content/article/2010/09/09/AR2010090904735.html
We would like to make one very important point about the process and beneficiaries of government reactions and involvements. Koppel alludes to them in his article. Businesses and bureaucracies, including the US military branches, benefit monetarily from these reactions and deployments. They get and make a lot of money as a consequence of these decisions. There are former government officials who have made money on these reactions. As Koppel points out, defense contracting is one of our few growth industries as, TheFundamentals would add, is the security business. Later this week we will present President Eisenhower’s exact same observations, made 50 years ago.
A fundamental of our government is that Americans must control their bureaucracies. Our politicians are not up to the job. It is a true failing of our form of representative democracy. The bureaucracies are now running the government and the taxpayers. This situation must be reversed. Koppel says it well. Five Star General Eisenhower said it well 50 years ago. We cannot afford another 50 years of bureaucracy control of the US government. The United States is not about presidents and congress people and bureaucrats. It is about "We The People" and we must make sensible strategic and tactical decisions that serve the long term interest of the many; not the short term interest of the few. Bureaucrats and politicians will fill any void left by the people. They will stand down quickly when the people speak and are involved. America, we have become complacent with our responsibility to speak out and stand up. It is up to us to find capable and experienced leaders. In a few weeks, we can dismiss these failed politicians. We can insist that our new representatives dismiss the failed bureaucrats. It is time to do our job. November 2, 2010.
Today, we repeat this process but on a very different topic. The article is written by a former newsperson and TV personality – Ted Koppel. It was published last Sunday in the editorial section of the Washington Post. We present it today in lieu of an essay we were going to post today based on General and President Eisenhower’s speech about the military/industrial complex. We will print our own essay later this week.
Now, to Koppel’s article, entitled, “Nine years after 9/11, let’s stop playing into bin Laden’s hands.” This article is worth reading by anyone who wishes to enter the discussion about measured and appropriate response to threats and attacks. We all know, have lived through, the significance of the US response to 9/11. We know only too well the impact on our deficits and debt of this response. We know only too well the fear based reactions that we can see every time we go to the airport, or try to find a parking place in a downtown area, or enter a government building. We also know the wide reaching impact when we renew our driver’s license or open a bank account. Some families know it with great pain and loss because their military family members did not come home from Iraq or Afghanistan. We at TheFundamentals do not wish to tarnish their loss or their sacrifice with these comments but we do think it is time to reconsider just how much loss of life and freedom and how much cost and militaristic bureaucratic activities we as a nation wish to endure as a consequence of suicidal terrorists, past and present.
Mr. Koppel's article is available at http://www.washingtonpost.com/wp-dyn/content/article/2010/09/09/AR2010090904735.html
We would like to make one very important point about the process and beneficiaries of government reactions and involvements. Koppel alludes to them in his article. Businesses and bureaucracies, including the US military branches, benefit monetarily from these reactions and deployments. They get and make a lot of money as a consequence of these decisions. There are former government officials who have made money on these reactions. As Koppel points out, defense contracting is one of our few growth industries as, TheFundamentals would add, is the security business. Later this week we will present President Eisenhower’s exact same observations, made 50 years ago.
A fundamental of our government is that Americans must control their bureaucracies. Our politicians are not up to the job. It is a true failing of our form of representative democracy. The bureaucracies are now running the government and the taxpayers. This situation must be reversed. Koppel says it well. Five Star General Eisenhower said it well 50 years ago. We cannot afford another 50 years of bureaucracy control of the US government. The United States is not about presidents and congress people and bureaucrats. It is about "We The People" and we must make sensible strategic and tactical decisions that serve the long term interest of the many; not the short term interest of the few. Bureaucrats and politicians will fill any void left by the people. They will stand down quickly when the people speak and are involved. America, we have become complacent with our responsibility to speak out and stand up. It is up to us to find capable and experienced leaders. In a few weeks, we can dismiss these failed politicians. We can insist that our new representatives dismiss the failed bureaucrats. It is time to do our job. November 2, 2010.
Thursday, September 9, 2010
Mrs. Clinton for President
TheFundamentals got a message very, very recently. The source of the message made it quite clear that Mrs. Clinton was getting very smug with the self embraced aura of someone who no longer had to be the only person on the planet who was now thinking 24/7, “I told you so.” Or, even more to the point, “How could you have been so stupid?” “I tried to tell you.” “I did my very best but, oh no, you wouldn’t listen.” “You fell in love with the nonsense of the message, the glamour (?) of the messenger and the image of the event.”
So, now what?
The party out of power (POOP) has a taint, an odor and its very own voters are not much inclined to return this gang to the dance. It will take the tea party (TheFundamentals calls them concerned citizens) gang a long time to get rid of all the imbedded POOP players. They don’t seem to want to up and quit. Do you really want to give the keys back to Boehner and Hatch and McConnell? We don’t think so. Sure, they get some balance back in congress in a few weeks but do you think they have learned a thing? Will they cut government back? Seriously cut it back? Take on the protected groups and the special interest groups? Will they stand up to SEIU and NEA and AFT and stop borrowing national funds to spend on local public employees? Can they? Not a chance. Could POOP get a non political leader who has the credentials, the experience and the moxie to start the process and is willing to take one for the team? And even then PIP will fight that person forever. Any likelihood of such a person being drafted by 2012? Very, very little. Any likelihood of the current list of POOP candidates being able to generate the spine; the experience; the credentials to be able to muster the following? Very, very little.
By 2012 this nation of ours will be clamoring for change and not the nonsense of the incumbent. There is only one expression that comes to mind when we watch him, think of him and project his future – Stick a fork in him; he’s done.
Why did Mrs. Clinton say that the debt level of the US is now a national security concern? Why did she say that the debt level of the US limits our options? Hmmnn. When the last time debt level was was not a concern? Who was that guy in the white house when debt was not a concern? When spending and receipts were almost in balance? Hmmnn. Is she thinking what we’re thinking?
Bu 2012 this nation of ours will be facing the consequences of being controlled by its debtor status. It can either print currency to keep up its fiscally promiscuous ways or it can face the music and start taking its medicine? Now who would want to be the leader to oversee those options and to make the choices of which ones to implement? Not a lot of fun, huh? Do you want Sarah Palin making those choices? Or Mitt Romney or Rudy Giuliani? John McCain would probably volunteer for the job? Maybe POOP can prop up Bob Dole and bring him back. Where will POOP look to find the person to do the job? The military? One of the successful generals who ran one of the many US adventures of the last two decades? Wall Street? One of their heroes? Meg Whitman? Carly Fiorina? POOP can’t run Ahnold but we’re sure he’d do it. Some track record, huh? Perhaps one of their new kids? One of the wannabee politicians who is making noises about cutting back; taking back the country; limiting government? C’mon, it’s fun to think about and its fun to hope and wish for but it’s not going to happen.
Usually when you make a mistake, you correct the error and then go back to one of the alternatives that you didn’t choose when you made the mistake. And guess what folks? The corrective measures are not all that difficult. As a matter of fact, in business, when one takes over a failing concern, there are so many early on steps that can be taken to build the confidence that permits the next more difficult level of steps that this first group of steps has its own designation – low hanging fruit. Mrs. Clinton knows about low hanging fruit. Her boss has nary a clue
Which brings us back to the title caption?
There’s one election coming up between now and when she needs to decide. Will she decide? What will hubby say? The media is already picking up on it and she gets to be so smug that you almost want to like her. She was left at the altar just months ago and now the bridal party is back asking her to put the dress on again. They are already talking to her. Will she? Wont she? Wouldn’t we all like to be in her position? You can be brutally honest and wonderfully informed as you discuss the issues, the problems, the choices. The entire focus is on the kid and the kid doesn’t have a clue. He is rolling out the same speeches and it works with his dedicated base who are basically the recipients of his Robin Hood ways - I am the way; the others are not the way. Follow me. We are looking out for you. We can spend so that you can spend. We are putting money in your pockets, creating and saving jobs and we are not going to give a cent to those who have. We are going to raise their taxes and we are going to make life better for you. Spread it around; take from the rich; free health care; jobs; don’t worry; we have money for you; just tell ‘em you’re unemployed. Tell ‘em you’re looking. Endless money. Don’t worry about jobs. 40% or so get the goods so he can’t fall much lower than 40% in the polls.
Just watch her. She has every right to enjoy this time.
But here are the questions she has to answer? Do I really want to clean up Bush and Barack’s mess? Do I want to deal with the deficits and the debt? How much low hanging fruit is out there? Do I want to fight with the other party? Do I want to deal with China? Iran? The never ending Middle East mess? Can I succeed? Could I fail? Is it best to just sit back and enjoy this time? They had their chance and they chose the kid.
It really comes down to her. What will be the determining factors? The megalomaniacal dreams of my husband? My own? The practical reality of the messes at hand? My time in history?
She’s enjoying it now. She should. It’s not going to get much better than this.
So, now what?
The party out of power (POOP) has a taint, an odor and its very own voters are not much inclined to return this gang to the dance. It will take the tea party (TheFundamentals calls them concerned citizens) gang a long time to get rid of all the imbedded POOP players. They don’t seem to want to up and quit. Do you really want to give the keys back to Boehner and Hatch and McConnell? We don’t think so. Sure, they get some balance back in congress in a few weeks but do you think they have learned a thing? Will they cut government back? Seriously cut it back? Take on the protected groups and the special interest groups? Will they stand up to SEIU and NEA and AFT and stop borrowing national funds to spend on local public employees? Can they? Not a chance. Could POOP get a non political leader who has the credentials, the experience and the moxie to start the process and is willing to take one for the team? And even then PIP will fight that person forever. Any likelihood of such a person being drafted by 2012? Very, very little. Any likelihood of the current list of POOP candidates being able to generate the spine; the experience; the credentials to be able to muster the following? Very, very little.
By 2012 this nation of ours will be clamoring for change and not the nonsense of the incumbent. There is only one expression that comes to mind when we watch him, think of him and project his future – Stick a fork in him; he’s done.
Why did Mrs. Clinton say that the debt level of the US is now a national security concern? Why did she say that the debt level of the US limits our options? Hmmnn. When the last time debt level was was not a concern? Who was that guy in the white house when debt was not a concern? When spending and receipts were almost in balance? Hmmnn. Is she thinking what we’re thinking?
Bu 2012 this nation of ours will be facing the consequences of being controlled by its debtor status. It can either print currency to keep up its fiscally promiscuous ways or it can face the music and start taking its medicine? Now who would want to be the leader to oversee those options and to make the choices of which ones to implement? Not a lot of fun, huh? Do you want Sarah Palin making those choices? Or Mitt Romney or Rudy Giuliani? John McCain would probably volunteer for the job? Maybe POOP can prop up Bob Dole and bring him back. Where will POOP look to find the person to do the job? The military? One of the successful generals who ran one of the many US adventures of the last two decades? Wall Street? One of their heroes? Meg Whitman? Carly Fiorina? POOP can’t run Ahnold but we’re sure he’d do it. Some track record, huh? Perhaps one of their new kids? One of the wannabee politicians who is making noises about cutting back; taking back the country; limiting government? C’mon, it’s fun to think about and its fun to hope and wish for but it’s not going to happen.
Usually when you make a mistake, you correct the error and then go back to one of the alternatives that you didn’t choose when you made the mistake. And guess what folks? The corrective measures are not all that difficult. As a matter of fact, in business, when one takes over a failing concern, there are so many early on steps that can be taken to build the confidence that permits the next more difficult level of steps that this first group of steps has its own designation – low hanging fruit. Mrs. Clinton knows about low hanging fruit. Her boss has nary a clue
Which brings us back to the title caption?
There’s one election coming up between now and when she needs to decide. Will she decide? What will hubby say? The media is already picking up on it and she gets to be so smug that you almost want to like her. She was left at the altar just months ago and now the bridal party is back asking her to put the dress on again. They are already talking to her. Will she? Wont she? Wouldn’t we all like to be in her position? You can be brutally honest and wonderfully informed as you discuss the issues, the problems, the choices. The entire focus is on the kid and the kid doesn’t have a clue. He is rolling out the same speeches and it works with his dedicated base who are basically the recipients of his Robin Hood ways - I am the way; the others are not the way. Follow me. We are looking out for you. We can spend so that you can spend. We are putting money in your pockets, creating and saving jobs and we are not going to give a cent to those who have. We are going to raise their taxes and we are going to make life better for you. Spread it around; take from the rich; free health care; jobs; don’t worry; we have money for you; just tell ‘em you’re unemployed. Tell ‘em you’re looking. Endless money. Don’t worry about jobs. 40% or so get the goods so he can’t fall much lower than 40% in the polls.
Just watch her. She has every right to enjoy this time.
But here are the questions she has to answer? Do I really want to clean up Bush and Barack’s mess? Do I want to deal with the deficits and the debt? How much low hanging fruit is out there? Do I want to fight with the other party? Do I want to deal with China? Iran? The never ending Middle East mess? Can I succeed? Could I fail? Is it best to just sit back and enjoy this time? They had their chance and they chose the kid.
It really comes down to her. What will be the determining factors? The megalomaniacal dreams of my husband? My own? The practical reality of the messes at hand? My time in history?
She’s enjoying it now. She should. It’s not going to get much better than this.
Monday, September 6, 2010
Labor Day 2010
Americans have lived through several decades of obscene intrusion in their lives brought about by large groups of people who promote, benefit and retire handsomely as a consequence of obscene intrusion into the lives of the very people who fund the obscene intruders. We do not want to celebrate these people today.
In the olden days, the townsfolk would cringe and hide when the bad guys rode in and grabbed their livestock, harvested crops and pubescent daughters for fun and food and teenage boys for recruits. Finally the townies would figure out a way to either ambush the bad guys themselves or employ the “Magnificent Seven” to do it for them. No such luck for us townsfolk’s now. Mostly, the bad guys never even see us. We sign up voluntarily. We let them know about every move we make or someone else does it for us. Today it is done electronically. It is done comprehensively. And insidiously.
You cannot own a bank account, a share of stock, a mutual fund, an automobile, a house, a piece of land, a job, a business or an airplane ticket without registering it with the government. You cannot produce a child without registering him/her with the government. You cannot travel anywhere without being recorded countless times on government, and privately, owned cameras and numerous digital recording devices. They actually view you naked and capture the images at the airport; just for using the services of a private company. You can’t walk many city sidewalks or make a right turn on red without your very presence being captured.
If you wish to self insure your retirement, you can, but only after you contribute handsomely to the social services net the government forces you to fund. If you wish to self insure your retirement health benefits you cannot, because you will be forced to use the government health insurance program and you will be forced to accept whatever limitations may arise, present or future, as a consequence of being forced into that arrangement.
Each of these intrusions is overseen by multitudes of faceless, nameless, careless and mostly ill informed minions known for centuries as “bureaucrats.” In some societies they are called apparatchiks and in the new Europe, “eurocrats.” They have been called “civil servants” although they are neither. In Russia they have been referred to as “nomenklatura.” In China, years ago, they were titled, “mandarins.” Their common characteristics include: ability to follow rules designed to accommodate the very lowest common denominator of human behavior; follow said rules with unthinking consistency and behave in a manner of absolute disconnect and superiority through the process.
In America, the land of Madison Avenue and making all things mediocre (Bud Light is America’s top selling beer – go figure) appear otherwise, the bureaucrat/apparatchik/mandarin has taken to self endowing their highly paid, highly benefitted, highly pensioned activity with the new designation of “public servant.” So, you can now find public servants everywhere. Mostly, you can find them behind secure windows, walls, chambers and doors. They usually occupy buildings that are off limits, except under quite challenging access rules, to the very people who finance their existence. This is what we at TheFundamentals call, “good news, bad news.” You don’t want to go there anyway so it is good news that they make it so difficult for you to even enter much less engage. The bad news is that it irritates us that these servants of ours (giggle; tee – hee –hee) are so insulated because they are so afraid of being targeted because of their very behavior and entitlement.
If you want another decade of this nonsense make sure to cast your vote for one of the PIP or POOP incumbents who are scurrying now to appear to be concerned about the mess we are in. If you don’t want another decade of this nonsense, there is only one way to put an end to this massive shadow over freedom, privacy and entrepreneurial inclinations. No, we are not talking revolution; it is not worth your time, blood, energy or additional financing to engage is that form of disposal. We are talking the simple technique of eliminating the funding. Think of it as stopping the blood flow to cancer cells. There is no other way to cut back on the intrusion and still be civil. We simply need to take extraordinary steps to terminate the funding of these intruders whether they are local, county, state or federal.
The cut back techniques can be both focused and general. What do we mean by that?
Focused cuts would be the elimination of entire gatherings of intruders – for example, the NSA and its massive listening/ eavesdropping/ intelligence (?) gathering intrusion into the American way of freedom and privacy. It needs to be eliminated in one act. If it turns out a small portion of its activity is subsequently missed, such as following students from foreign lands who enter this country with a purposes other than higher learning, we can find a group of existing bureaucrats who will only be too glad to add this task to their dwindling “public servant” task book. Another good example would be the elimination of all funding to the Corporation for Public Broadcasting or PBS as it is known.
General cuts would include the long overdue 25% cut for all government agencies coupled with 50% cuts across the board of any funding and subsidization activity. Large cuts should be applied to all forms of subsidization – from oil drilling to pharmaceuticals to education to health care to agriculture to research and colleges and universities. The cutbacks should be phased in – 25% the first year; 25% more the second year in order to provide for a manageable period of adjustment. When we see how the first 50% works, we can then assess the next level of cuts. The concept is to make the cuts orderly and with great “bureaucratic compassion.”
The social security net must be limited to citizens who have met certain minimum participation standards and every citizen should have the opportunity to choose their own form of alternative, non- government safety net retirement program and health insurance. Non citizens just need to head home for their retirement; the same way us Americans are expected to head home for our retirement.
Most importantly. There is no purpose or legal basis for any person working for any government at any level to be able to unionize or enforce a negotiation stance that is not in the public interest. If you work for any government agency you do so at the will of the people and that means you can be relocated, terminated or otherwise dealt with for any reason at any time with no consequence. If you don’t like those rules you need to seek employment in the private sector where you will be able to compete with others and rise to the level of your talent, motivation and behavior.
Last, all persons employed by any government agency will abide by pay and benefit scales consistent with the average of those funding their employment. So, if you work for the city of New York, you are paid the average wage for the private sector New York employee. If you work for Los Angeles County, ditto. Now, this last example violates our principle of states’ rights. So, we will modify it as soon as the national government enforces a “no funding of state and local employment” standard consistent with the US Constitution. Further, the same rules apply to both your benefits and your defined contribution retirement plan. Yes, defined benefit plan; no more defined contribution plans. All consistent with the wages, benefits and defined contribution retirement plans that the fine folk who pay your wages, benefits and retirement plans are receiving. We repeat, there will be no federal subsidization of any local or state employment or benefits. Clinton’s idea of a hundred thousand cops across the land paid for with US funds in both illegal and kaput.
Watch America grow under these changes. Watch the bureaucrats squeal. Watch jobs grow under these changes. Watch competition accelerate with these changes. The time to begin is November 2, 2010 at the ballot box. The challenge is to find a few good women and a few good men to embrace and spread the change and then get back to their day jobs. The era of the professional politician and massive government employment is over. We just need a good “two by four upside the head election” to get the message crafted and a few brave short term politicians to start the implementation. If not now, when? If not us, who? Do you want another decade of this nonsense? LABOR DAY celebrates the toil of the American worker; not the American bureaucrat. Let’s make sure we reestablish this fundamental by Labor Day 2020.
In the olden days, the townsfolk would cringe and hide when the bad guys rode in and grabbed their livestock, harvested crops and pubescent daughters for fun and food and teenage boys for recruits. Finally the townies would figure out a way to either ambush the bad guys themselves or employ the “Magnificent Seven” to do it for them. No such luck for us townsfolk’s now. Mostly, the bad guys never even see us. We sign up voluntarily. We let them know about every move we make or someone else does it for us. Today it is done electronically. It is done comprehensively. And insidiously.
You cannot own a bank account, a share of stock, a mutual fund, an automobile, a house, a piece of land, a job, a business or an airplane ticket without registering it with the government. You cannot produce a child without registering him/her with the government. You cannot travel anywhere without being recorded countless times on government, and privately, owned cameras and numerous digital recording devices. They actually view you naked and capture the images at the airport; just for using the services of a private company. You can’t walk many city sidewalks or make a right turn on red without your very presence being captured.
If you wish to self insure your retirement, you can, but only after you contribute handsomely to the social services net the government forces you to fund. If you wish to self insure your retirement health benefits you cannot, because you will be forced to use the government health insurance program and you will be forced to accept whatever limitations may arise, present or future, as a consequence of being forced into that arrangement.
Each of these intrusions is overseen by multitudes of faceless, nameless, careless and mostly ill informed minions known for centuries as “bureaucrats.” In some societies they are called apparatchiks and in the new Europe, “eurocrats.” They have been called “civil servants” although they are neither. In Russia they have been referred to as “nomenklatura.” In China, years ago, they were titled, “mandarins.” Their common characteristics include: ability to follow rules designed to accommodate the very lowest common denominator of human behavior; follow said rules with unthinking consistency and behave in a manner of absolute disconnect and superiority through the process.
In America, the land of Madison Avenue and making all things mediocre (Bud Light is America’s top selling beer – go figure) appear otherwise, the bureaucrat/apparatchik/mandarin has taken to self endowing their highly paid, highly benefitted, highly pensioned activity with the new designation of “public servant.” So, you can now find public servants everywhere. Mostly, you can find them behind secure windows, walls, chambers and doors. They usually occupy buildings that are off limits, except under quite challenging access rules, to the very people who finance their existence. This is what we at TheFundamentals call, “good news, bad news.” You don’t want to go there anyway so it is good news that they make it so difficult for you to even enter much less engage. The bad news is that it irritates us that these servants of ours (giggle; tee – hee –hee) are so insulated because they are so afraid of being targeted because of their very behavior and entitlement.
If you want another decade of this nonsense make sure to cast your vote for one of the PIP or POOP incumbents who are scurrying now to appear to be concerned about the mess we are in. If you don’t want another decade of this nonsense, there is only one way to put an end to this massive shadow over freedom, privacy and entrepreneurial inclinations. No, we are not talking revolution; it is not worth your time, blood, energy or additional financing to engage is that form of disposal. We are talking the simple technique of eliminating the funding. Think of it as stopping the blood flow to cancer cells. There is no other way to cut back on the intrusion and still be civil. We simply need to take extraordinary steps to terminate the funding of these intruders whether they are local, county, state or federal.
The cut back techniques can be both focused and general. What do we mean by that?
Focused cuts would be the elimination of entire gatherings of intruders – for example, the NSA and its massive listening/ eavesdropping/ intelligence (?) gathering intrusion into the American way of freedom and privacy. It needs to be eliminated in one act. If it turns out a small portion of its activity is subsequently missed, such as following students from foreign lands who enter this country with a purposes other than higher learning, we can find a group of existing bureaucrats who will only be too glad to add this task to their dwindling “public servant” task book. Another good example would be the elimination of all funding to the Corporation for Public Broadcasting or PBS as it is known.
General cuts would include the long overdue 25% cut for all government agencies coupled with 50% cuts across the board of any funding and subsidization activity. Large cuts should be applied to all forms of subsidization – from oil drilling to pharmaceuticals to education to health care to agriculture to research and colleges and universities. The cutbacks should be phased in – 25% the first year; 25% more the second year in order to provide for a manageable period of adjustment. When we see how the first 50% works, we can then assess the next level of cuts. The concept is to make the cuts orderly and with great “bureaucratic compassion.”
The social security net must be limited to citizens who have met certain minimum participation standards and every citizen should have the opportunity to choose their own form of alternative, non- government safety net retirement program and health insurance. Non citizens just need to head home for their retirement; the same way us Americans are expected to head home for our retirement.
Most importantly. There is no purpose or legal basis for any person working for any government at any level to be able to unionize or enforce a negotiation stance that is not in the public interest. If you work for any government agency you do so at the will of the people and that means you can be relocated, terminated or otherwise dealt with for any reason at any time with no consequence. If you don’t like those rules you need to seek employment in the private sector where you will be able to compete with others and rise to the level of your talent, motivation and behavior.
Last, all persons employed by any government agency will abide by pay and benefit scales consistent with the average of those funding their employment. So, if you work for the city of New York, you are paid the average wage for the private sector New York employee. If you work for Los Angeles County, ditto. Now, this last example violates our principle of states’ rights. So, we will modify it as soon as the national government enforces a “no funding of state and local employment” standard consistent with the US Constitution. Further, the same rules apply to both your benefits and your defined contribution retirement plan. Yes, defined benefit plan; no more defined contribution plans. All consistent with the wages, benefits and defined contribution retirement plans that the fine folk who pay your wages, benefits and retirement plans are receiving. We repeat, there will be no federal subsidization of any local or state employment or benefits. Clinton’s idea of a hundred thousand cops across the land paid for with US funds in both illegal and kaput.
Watch America grow under these changes. Watch the bureaucrats squeal. Watch jobs grow under these changes. Watch competition accelerate with these changes. The time to begin is November 2, 2010 at the ballot box. The challenge is to find a few good women and a few good men to embrace and spread the change and then get back to their day jobs. The era of the professional politician and massive government employment is over. We just need a good “two by four upside the head election” to get the message crafted and a few brave short term politicians to start the implementation. If not now, when? If not us, who? Do you want another decade of this nonsense? LABOR DAY celebrates the toil of the American worker; not the American bureaucrat. Let’s make sure we reestablish this fundamental by Labor Day 2020.
Friday, September 3, 2010
Municipal Bond Fraud
Any follower/reader/supporter/contributor to these pages knows that TheFundamentals has been adamant in its criticism of certain states fiscal policies with an emphasis on their very promiscuous and unnecessary pension programs. If you want to see the story told in startling facts and figures, click on this link to a recent article written by the governor of California: http://online.wsj.com/article/SB10001424052748703447004575449813071709510.html?mod=WSJ_Opinion_LEADTop
There is just no local or state politician willing or able to vigorously represent the taxpayers in negotiating most remuneration/benefit or pension package with municipal and state public unions. The result is now a huge imbalance in pay scales between public and private employees and similar massive imbalances in their benefit programs and their pension programs. You can blame almost any of the responsible parties – greedy government employees; even greedier union representation; very weak political leadership and an electorate that either doesn’t care about the situation or has no idea what to do about the situation.
But that does not excuse the forces that still have responsibility for the mess in many of our larger cities, counties and states. Who or what are these forces you may ask? Well, they are numerous and they begin with the aforementioned parties. But after concluding that there is no real enforcement capability with any of the above parties, let’s look at others who also should be held responsible for fiscal promiscuity and terrible money management by government officials and employees.
Most government entities – cities, states, counties, school district and other local political subdivisions borrow money and are obligated to issue audited financial statements. These two facts bring them under the scrutiny of outside forces. These forces include laws, rules and reporting obligations that carry certain standards and deadlines for presenting accurate information independently reviewed, audited and certified. That process also includes penalty provisions for misstatement, deception and outright fraud. In many cases the penalties are civil in nature meaning a court of law may find a party guilty and require recompensation to correct a misdeed. In other cases, the penalties are criminal meaning the law will prosecute the case and may impose, upon findings of guilt, prison sentences as well as fines to the wrongdoers.
So, where is the accountability? Are the auditors of all the bond issuers demanding accurate financial reporting of all pension obligations and, more importantly, are they issuing opinions that accurately depict the circumstances of underfunded liabilities? Are they issuing opinions that would necessitate corrective action? We don’t know. We would like to hear from knowledgeable and interested parties about the fulfillment of this responsibility. Moving further on this topic, are the state auditors issuing accurate oversight reports about the financial condition of sub political units within their states? Are they determining that the public and the bondholders are receiving accurate financial information with full disclosure of all contingent liabilities as well as all recorded liabilities? We don’t know. We would like to hear from knowledgeable and interested parties about the fulfillment of this responsibility. Moving further on this topic, what about the Securities and Exchange Commission, the SEC, the outfit that missed Bernie Madoff, the outfit that missed FNMA and FHLMC and missed Citigroup and Bear Stearns and Lehman? Are they doing their job? Are they notifying the public about risk in the financial dealings of state and municipal entities and their liabilities and obligations, both known and contingent? We don’t know.
But here is one thing we do know. Quoting directly from the SEC press release issued recently: “Washington, D.C., Aug. 18, 2010 — The Securities and Exchange Commission today charged the State of New Jersey with securities fraud for misrepresenting and failing to disclose to investors in billions of dollars worth of municipal bond offerings that it was underfunding the state's two largest pension plans.” “The SEC's order further finds that New Jersey failed to provide certain present and historical financial information regarding its pension funding in bond disclosure documents.” You can read the entire press release at: http://www.sec.gov/news/press/2010/2010-152.htm How much was involved you may ask? The release says $26 billion between August 2001 and April 2007. Just $26 billion! Anyone going to jail? Dunno. Anyone get fined? Dunno. Can’t find any suggestion that anyone even got fired.
So, in closing, we would like to be helpful. We don’t know who is telling the truth, the whole truth and nothing but the truth. We don’t know how accurate or inaccurate the bond filings are and how accurate and complete the financial statements are or whether the shenanigans that the SEC finally located in NJ are replicated in other locales. We just dunno. But, here is a suggestion; a clue; just a simple observation. If you are an accountant or an auditor or a regulator or a rating agency person, it just may be a remote possibility; there is an outside chance that some state or county or city or school board may not be sure just where they are going to get the funds to meet all their known and future obligations. And we think it’s about time you started getting that information out to the public. Or, to put it another way, we think it’s about time you started doing your job. That information should be made very public and very soon.
By the way, where is the FBI? What is the US Justice Department doing? Do they only concern themselves with citizens who don't tell the truth, the whole truth and nothing but the truth? Do they just take a pass on governmental entities which fail to disclose the whole truth? What is the responsibility of the "authorities" when a governmental entity could be the prevaricator?
There is just no local or state politician willing or able to vigorously represent the taxpayers in negotiating most remuneration/benefit or pension package with municipal and state public unions. The result is now a huge imbalance in pay scales between public and private employees and similar massive imbalances in their benefit programs and their pension programs. You can blame almost any of the responsible parties – greedy government employees; even greedier union representation; very weak political leadership and an electorate that either doesn’t care about the situation or has no idea what to do about the situation.
But that does not excuse the forces that still have responsibility for the mess in many of our larger cities, counties and states. Who or what are these forces you may ask? Well, they are numerous and they begin with the aforementioned parties. But after concluding that there is no real enforcement capability with any of the above parties, let’s look at others who also should be held responsible for fiscal promiscuity and terrible money management by government officials and employees.
Most government entities – cities, states, counties, school district and other local political subdivisions borrow money and are obligated to issue audited financial statements. These two facts bring them under the scrutiny of outside forces. These forces include laws, rules and reporting obligations that carry certain standards and deadlines for presenting accurate information independently reviewed, audited and certified. That process also includes penalty provisions for misstatement, deception and outright fraud. In many cases the penalties are civil in nature meaning a court of law may find a party guilty and require recompensation to correct a misdeed. In other cases, the penalties are criminal meaning the law will prosecute the case and may impose, upon findings of guilt, prison sentences as well as fines to the wrongdoers.
So, where is the accountability? Are the auditors of all the bond issuers demanding accurate financial reporting of all pension obligations and, more importantly, are they issuing opinions that accurately depict the circumstances of underfunded liabilities? Are they issuing opinions that would necessitate corrective action? We don’t know. We would like to hear from knowledgeable and interested parties about the fulfillment of this responsibility. Moving further on this topic, are the state auditors issuing accurate oversight reports about the financial condition of sub political units within their states? Are they determining that the public and the bondholders are receiving accurate financial information with full disclosure of all contingent liabilities as well as all recorded liabilities? We don’t know. We would like to hear from knowledgeable and interested parties about the fulfillment of this responsibility. Moving further on this topic, what about the Securities and Exchange Commission, the SEC, the outfit that missed Bernie Madoff, the outfit that missed FNMA and FHLMC and missed Citigroup and Bear Stearns and Lehman? Are they doing their job? Are they notifying the public about risk in the financial dealings of state and municipal entities and their liabilities and obligations, both known and contingent? We don’t know.
But here is one thing we do know. Quoting directly from the SEC press release issued recently: “Washington, D.C., Aug. 18, 2010 — The Securities and Exchange Commission today charged the State of New Jersey with securities fraud for misrepresenting and failing to disclose to investors in billions of dollars worth of municipal bond offerings that it was underfunding the state's two largest pension plans.” “The SEC's order further finds that New Jersey failed to provide certain present and historical financial information regarding its pension funding in bond disclosure documents.” You can read the entire press release at: http://www.sec.gov/news/press/2010/2010-152.htm How much was involved you may ask? The release says $26 billion between August 2001 and April 2007. Just $26 billion! Anyone going to jail? Dunno. Anyone get fined? Dunno. Can’t find any suggestion that anyone even got fired.
So, in closing, we would like to be helpful. We don’t know who is telling the truth, the whole truth and nothing but the truth. We don’t know how accurate or inaccurate the bond filings are and how accurate and complete the financial statements are or whether the shenanigans that the SEC finally located in NJ are replicated in other locales. We just dunno. But, here is a suggestion; a clue; just a simple observation. If you are an accountant or an auditor or a regulator or a rating agency person, it just may be a remote possibility; there is an outside chance that some state or county or city or school board may not be sure just where they are going to get the funds to meet all their known and future obligations. And we think it’s about time you started getting that information out to the public. Or, to put it another way, we think it’s about time you started doing your job. That information should be made very public and very soon.
By the way, where is the FBI? What is the US Justice Department doing? Do they only concern themselves with citizens who don't tell the truth, the whole truth and nothing but the truth? Do they just take a pass on governmental entities which fail to disclose the whole truth? What is the responsibility of the "authorities" when a governmental entity could be the prevaricator?
Wednesday, September 1, 2010
Federalism in the 21st Century
This essay is about the fundamentals of respecting differences and encouraging competition.
When the United States was being formed, there were thirteen colonies and those colonies were not inhabited by like thinking; like religious practicing; like political leaning; like slave owning; like almost anything people with the exception of a good disliking for George III and his minions. So, they united to form a rebellion and they formed ways of raising monies to fight and then they met and debated the form of government they wished to adopt and there was great discussion and disagreement. They actually started with so called Articles of Confederation; a loose umbrella over the thirteen separate colonies which were now, for the first time, being called states. They tried to live under those Articles but found that it was difficult to raise funds (taxes and fees and duties) to pay back the revolution war debts and they found that they could not deal with chaos like the Shays rebellion in Massachusetts. So, they reconvened and set up the constitution and, in order to get nine of the thirteen states to adopt it so that it could go into effect they attached the first ten amendments to it, the so called bill of rights, to placate those who feared a powerful central government would arise and they would find themselves in the same situation they just dismantled. (Aside, why would they have had that concern?)
Now, they left a lot of space for the states to do their own thing. Make their own laws. Follow their own spirit and have their own debates to define their own course of action and responsibility. In the meantime there were those who lived in one state and they had figured out how people in a different state should be living and behaving and acting. In a neighborhood, we call these people “busy bodies.” In the United States, we call them “politicians in power.” In some instances the issues were rather profound such as freeing the slaves of the southern states. In some cases the issues were rather unprofound such as letting men marry men; oops, that sounds as if we accelerated to the present a bit too fast. But you get the idea. So, today we have national laws about darn near everything as if the people of the 50 states see everything much the same way. Well, we/they don’t. And we never will and that’s why we have sovereign states and that’s why the diminution of the concept of federalism is the fundamental that is tearing us apart.
We are not alike. We do not see every topic; every issue the same. We are a big country made up of many immigrants and their offspring and we believe different things – different standards; different values; different morals; different religions; different work ethic; different health, education, charity and welfare inclinations. Its just the way we are.
Let’s say in one or two or three states, they just love unions. Let’s call those states Illinois, New York and California. But let’s say in three other states they could care less about unions; they just want jobs. Let’s call those states Texas, South Carolina and Alabama. So the economic systems are a bit different. This is good. This is competition. But what happens when one state or several find themselves losing jobs to other states? Do they look to change their belief system or do they look for protection of their belief system? Yep, they like that protection concept. So they get the national government to do many things to make sure that each state follows the same set of beliefs and rules. And this is breaking down the system of valuing difference and encouraging competition. It is also a violation of the constitution. There is no one size fits all that works regardless of the brilliance of HReid and NPelosi and BFrank.
What do the states say? New Hampshire says, “Live free or die” and California says, “Eureka…I have found it!” Tennessee says, “Agriculture and Commerce” and Maryland says, “Manly deeds womanly words,” So, what’s it to you in New York or Michigan or Florida? Butt out. Leave them be. They know what is best for their folk just as you should know what is best for your folk. But when you start telling them what to do you had better grasp that, at some point, someone is going to tell you what to do. You started it and you may well find someone else finishing it.
So, when the feds say this is how it works for all of you; stand up and say, as the people of Alabama do, “We Dare Defend our Rights.” And when the feds say everyone has to do it this way or that way, just use the words of the people of Georgia, “Wisdom, Justice and Moderation.” Or even better, send them to Iowa where the people say, “Our liberties we prize and our rights we will maintain.”
Now, back to our essay. Competition is the only way we will grow and survive in a competitive world marketplace. The feds will not and cannot lead us to that spot. They have nary a clue. The people of the 50 states of the United States can lead us to that spot. Let them compete and let them find the best path. Let's back off this idea that Washington DC has the answer. It doesn’t. Let’s stop with one size fits all and that size is usually designed with the lowest common denominator in mind. That is no way to lead and to compete. Lets open up and thrive in a competitive marketplace. Lets follow the wisdom of the people of Oklahoma who say, “Labor conquers all things.”
The concept of federalism is based on the fundamentals of respecting difference and encouraging competition. These are fundamentals we can live with.
By the way, if you’d like to see the mottos of all 50 states, just click on: http://www.statesymbolsusa.org/Lists/state_mottos.html
When the United States was being formed, there were thirteen colonies and those colonies were not inhabited by like thinking; like religious practicing; like political leaning; like slave owning; like almost anything people with the exception of a good disliking for George III and his minions. So, they united to form a rebellion and they formed ways of raising monies to fight and then they met and debated the form of government they wished to adopt and there was great discussion and disagreement. They actually started with so called Articles of Confederation; a loose umbrella over the thirteen separate colonies which were now, for the first time, being called states. They tried to live under those Articles but found that it was difficult to raise funds (taxes and fees and duties) to pay back the revolution war debts and they found that they could not deal with chaos like the Shays rebellion in Massachusetts. So, they reconvened and set up the constitution and, in order to get nine of the thirteen states to adopt it so that it could go into effect they attached the first ten amendments to it, the so called bill of rights, to placate those who feared a powerful central government would arise and they would find themselves in the same situation they just dismantled. (Aside, why would they have had that concern?)
Now, they left a lot of space for the states to do their own thing. Make their own laws. Follow their own spirit and have their own debates to define their own course of action and responsibility. In the meantime there were those who lived in one state and they had figured out how people in a different state should be living and behaving and acting. In a neighborhood, we call these people “busy bodies.” In the United States, we call them “politicians in power.” In some instances the issues were rather profound such as freeing the slaves of the southern states. In some cases the issues were rather unprofound such as letting men marry men; oops, that sounds as if we accelerated to the present a bit too fast. But you get the idea. So, today we have national laws about darn near everything as if the people of the 50 states see everything much the same way. Well, we/they don’t. And we never will and that’s why we have sovereign states and that’s why the diminution of the concept of federalism is the fundamental that is tearing us apart.
We are not alike. We do not see every topic; every issue the same. We are a big country made up of many immigrants and their offspring and we believe different things – different standards; different values; different morals; different religions; different work ethic; different health, education, charity and welfare inclinations. Its just the way we are.
Let’s say in one or two or three states, they just love unions. Let’s call those states Illinois, New York and California. But let’s say in three other states they could care less about unions; they just want jobs. Let’s call those states Texas, South Carolina and Alabama. So the economic systems are a bit different. This is good. This is competition. But what happens when one state or several find themselves losing jobs to other states? Do they look to change their belief system or do they look for protection of their belief system? Yep, they like that protection concept. So they get the national government to do many things to make sure that each state follows the same set of beliefs and rules. And this is breaking down the system of valuing difference and encouraging competition. It is also a violation of the constitution. There is no one size fits all that works regardless of the brilliance of HReid and NPelosi and BFrank.
What do the states say? New Hampshire says, “Live free or die” and California says, “Eureka…I have found it!” Tennessee says, “Agriculture and Commerce” and Maryland says, “Manly deeds womanly words,” So, what’s it to you in New York or Michigan or Florida? Butt out. Leave them be. They know what is best for their folk just as you should know what is best for your folk. But when you start telling them what to do you had better grasp that, at some point, someone is going to tell you what to do. You started it and you may well find someone else finishing it.
So, when the feds say this is how it works for all of you; stand up and say, as the people of Alabama do, “We Dare Defend our Rights.” And when the feds say everyone has to do it this way or that way, just use the words of the people of Georgia, “Wisdom, Justice and Moderation.” Or even better, send them to Iowa where the people say, “Our liberties we prize and our rights we will maintain.”
Now, back to our essay. Competition is the only way we will grow and survive in a competitive world marketplace. The feds will not and cannot lead us to that spot. They have nary a clue. The people of the 50 states of the United States can lead us to that spot. Let them compete and let them find the best path. Let's back off this idea that Washington DC has the answer. It doesn’t. Let’s stop with one size fits all and that size is usually designed with the lowest common denominator in mind. That is no way to lead and to compete. Lets open up and thrive in a competitive marketplace. Lets follow the wisdom of the people of Oklahoma who say, “Labor conquers all things.”
The concept of federalism is based on the fundamentals of respecting difference and encouraging competition. These are fundamentals we can live with.
By the way, if you’d like to see the mottos of all 50 states, just click on: http://www.statesymbolsusa.org/Lists/state_mottos.html
Thursday, August 26, 2010
Is Deficit Spending the Problem?
Yes, it’s a problem. No, it’s not the real problem. The real problem is a lack of primary focus on what matters. What matters are fundamentals. Not focusing on what matters results from not understanding what really matters and a constant distraction by people with megaphones, columns, blogs and other vested media and commercial pecuniary interests who promote misplaced and, in many cases, just erroneous analysis of and solutions to problems.
The American media, including the ranting right which lays claim to a more balanced agenda, just simply cannot bring themselves to focus on basic, fundamental issues. For reasons that TheFundamentals doesn’t grasp, they prefer to focus on a partisan agenda and occupy valuable and wasting time on topics of no import. It appears that they believe that this programming attracts more viewers than a worthwhile focus on the real problems in our country. They are more interested in lining their pockets than informing their audience.
If you believe that deficit spending is the best way to counter a drop in consumer demand even in the face of massive preceding deficits, then you are not grasping the problem. Many problems manifest themselves in symptoms. Symptoms are not the problem; they are the indicators of a real problem – something systemic or something basic or something fundamental. Stimulus spending cannot solve a fundamental problem. And, after years of stimulus spending, it just aggravates the basic problem. It actually feeds the problem. It actually makes the problem worse.
What creates consumer demand, you ask? People working in wealth creating jobs who are confident about their future. The most basic essential of a thriving, growing economy is the ability to create wealth. This is the fundamental; this is the foundation; this is the essential that must be grasped or all else is lost. America has lost focus on this essential.
If you can grasp that wealth creation is the most basic essential of a thriving, growing economy then you can move to the second most essential component of growth and that is the promotion of competition.
Let us just stop for a moment and ponder these two essentials. A growing economy is based on wealth creation and wealth creation derives from several essential activities (see: TheFundamentals, February 4 and July 6, 2009). In order for a growing economy to survive in a larger environment; a community of other growing, thriving economies; it must promote competition. Not be neutral on the topic of competition and most certainly not be negative. If you think competition will come naturally you are wrong. It will not. There are too many forces that will seek protection and, no, they do not seek protection by asking directly for protection in most cases. They seek protection under the guise of lofty goals and betterment. Lofty goals have become a part of America's economic mythology. Betterment is selfishly directed. It betters those who seek protection.
America is no longer an economic growth machine. It relies on mythology about its past accomplishments and blunders around the globe with its confused and short sighted foreign, military and trade policies. But back home it has chosen protection and favoritism of special interests over competition. And that folks is not a symptom; it is the problem. It is the problem that is known to all but those who should and can do something about it.
What will get our focus back on wealth creation and competition? We don’t know. We just don’t know. The corrective actions that the marketplace forces on us are now being countered with activities (deficits and debt; stimulus and bailouts) that build a greater problem and, the obvious need for an even greater correction in the future. Our competitors know that we are on a path of self destruction. They will speak among themselves about it but they will not force or encourage corrective action because they know it will ultimately arrive and they do not want their fingerprints on it. They know that they will be the beneficiaries of its arrival.
There are only a few paths to correct America’s real problem. Eliminate the years of laws, rules, taxes, spending, regulations, bureaucracies and policies that either burden wealth creation or suppress competition. When that job is done, get about promoting rules and policies that promote wealth creation and competition. Protected groups, special interests and millions of their beneficiaries will holler (remember the line from Summertime Blues, “I’m gonna raise a fuss, I’m gonna raise a holler”) and complain and spread fear of doom. When that occurs and their fuss occupies the media; then, and only then, will you know that help is on the way. That the problem; the real problem; not the symptom, is being corrected.
Let’s just repeat this simple truism. You will know that the real problem is being corrected when the forces that burden wealth creation and suppress competition are occupying regularly and consistently the attention and focus of the media, regardless of political leaning. Until that happens the problem is just getting worse.
The American media, including the ranting right which lays claim to a more balanced agenda, just simply cannot bring themselves to focus on basic, fundamental issues. For reasons that TheFundamentals doesn’t grasp, they prefer to focus on a partisan agenda and occupy valuable and wasting time on topics of no import. It appears that they believe that this programming attracts more viewers than a worthwhile focus on the real problems in our country. They are more interested in lining their pockets than informing their audience.
If you believe that deficit spending is the best way to counter a drop in consumer demand even in the face of massive preceding deficits, then you are not grasping the problem. Many problems manifest themselves in symptoms. Symptoms are not the problem; they are the indicators of a real problem – something systemic or something basic or something fundamental. Stimulus spending cannot solve a fundamental problem. And, after years of stimulus spending, it just aggravates the basic problem. It actually feeds the problem. It actually makes the problem worse.
What creates consumer demand, you ask? People working in wealth creating jobs who are confident about their future. The most basic essential of a thriving, growing economy is the ability to create wealth. This is the fundamental; this is the foundation; this is the essential that must be grasped or all else is lost. America has lost focus on this essential.
If you can grasp that wealth creation is the most basic essential of a thriving, growing economy then you can move to the second most essential component of growth and that is the promotion of competition.
Let us just stop for a moment and ponder these two essentials. A growing economy is based on wealth creation and wealth creation derives from several essential activities (see: TheFundamentals, February 4 and July 6, 2009). In order for a growing economy to survive in a larger environment; a community of other growing, thriving economies; it must promote competition. Not be neutral on the topic of competition and most certainly not be negative. If you think competition will come naturally you are wrong. It will not. There are too many forces that will seek protection and, no, they do not seek protection by asking directly for protection in most cases. They seek protection under the guise of lofty goals and betterment. Lofty goals have become a part of America's economic mythology. Betterment is selfishly directed. It betters those who seek protection.
America is no longer an economic growth machine. It relies on mythology about its past accomplishments and blunders around the globe with its confused and short sighted foreign, military and trade policies. But back home it has chosen protection and favoritism of special interests over competition. And that folks is not a symptom; it is the problem. It is the problem that is known to all but those who should and can do something about it.
What will get our focus back on wealth creation and competition? We don’t know. We just don’t know. The corrective actions that the marketplace forces on us are now being countered with activities (deficits and debt; stimulus and bailouts) that build a greater problem and, the obvious need for an even greater correction in the future. Our competitors know that we are on a path of self destruction. They will speak among themselves about it but they will not force or encourage corrective action because they know it will ultimately arrive and they do not want their fingerprints on it. They know that they will be the beneficiaries of its arrival.
There are only a few paths to correct America’s real problem. Eliminate the years of laws, rules, taxes, spending, regulations, bureaucracies and policies that either burden wealth creation or suppress competition. When that job is done, get about promoting rules and policies that promote wealth creation and competition. Protected groups, special interests and millions of their beneficiaries will holler (remember the line from Summertime Blues, “I’m gonna raise a fuss, I’m gonna raise a holler”) and complain and spread fear of doom. When that occurs and their fuss occupies the media; then, and only then, will you know that help is on the way. That the problem; the real problem; not the symptom, is being corrected.
Let’s just repeat this simple truism. You will know that the real problem is being corrected when the forces that burden wealth creation and suppress competition are occupying regularly and consistently the attention and focus of the media, regardless of political leaning. Until that happens the problem is just getting worse.
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