The Obama Administration probably wishes they didn’t spend $18 million to build a website that is making a mockery of their vaunted stimulus package that if not passed might result in an economic calamity from which we might never recover.  Well, here is a random sampling of six beneficiaries of stimulus money:

• Maine — Fish River Rural Health: $491,222. Jobs created — zero
• New Jersey — Southern Regional High School Board of Education: $119,622. Jobs created — zero
• Michigan — West Branch Rose City Area School District: $879,258. Jobs created — zero
• Georgia — Georgia Crisis Family Center: $16,425.  Jobs created — zero
• Minnesota — Regents of the University of Minnesota: $294,200.  Jobs created — zero
• Texas — Port Aransas Independent School District: $143,241. Jobs created — zero

Enough already, I think you get the picture.  Lest you think my sampling was biased you  can play along.  Go to the website, pick a dot at random and see for yourself.  The media seem to be starting to wake up and do their job.  ABC News reported on data from non-existent Congressional Districts.  The New York Times reported on a $1,000 grant that created 50 jobs and upon further investigation found out the $1,000 went to purchase a lawn mower.  But don’t worry, President Obama put that pit bull Joe Biden in charge of making sure the money was spent carefully.  President Obama: \”Nobody Messes with Joe\”  Joe Biden, call your office.

We are on an express train to financial ruin.  This is not just a financial problem but a national security problem as well.  We won the Cold War, not with weapons, but with our economy.  President Reagan ramped up our military and the teetering Soviet economy could not keep up and communism collapsed.  China is becoming more capitalist every day as we chase the ghost of Karl Marx.  I ask a simple question, “Do you trust this administration to spend your tax dollars wisely?”  Do you believe any administration, Republican, Democrat, Independent, can effectively manage the federal government as it exists today? 

A phrase we often heard in the midst of the financial crisis as justification for bailouts was “too big to fail.”  One response to that was “make them smaller.”  If the federal government is too big to manage and is growing without bound, then we, who are the government of the people, must make the government smaller.  It is a fundamental truth of government that programs once started do not end, they just find other things to do.  Here is a case in point.

When I worked for one of the phone company spin offs after the break up of AT&T, I came across a regulatory agency called the Rural Electrification Administration.  Strange I thought, most of America has electricity, and I am not working for the electric company.  It turns out, that agency was created to help bring electricity to rural America.  Okay, that sounds like a good idea.  However, once its mission was completed, instead of going out of business, it found a new mission: bringing phone service to rural America, and it will go on and on.  One of the key problems is how the mission is defined.  In this example, as long as one farm doesn’t have electricity, the agency will still have a reason to exist.  As long as a log cabin in the woods doesn’t have a phone land line, the agency must soldier on.  As any economist will tell you, the cost of serving each additional rural property, will eventually skyrocket.

If we were to take these functions and drive them down to the state and local level, eventually someone will stand up and say, “We’re done,  it’s not worth the increase in taxes to prolong the life of this agency.”  But ensconced in Washington, it costs more to fight it than let it go on.  But we have reached a tipping point where if we don’t cut the beast down to size, the beast will have us for dinner.  Chinese anyone?

“marked by or involving cooperation, agreement, and compromise between two major political parties” — Miriam Webster Dictionary

The talk about bipartisanship and the accusations about a lack of bipartisanship are flying back and forth with such intensity, who could blame the casual observer for throwing up their hands and wishing a pox upon both houses?

President Obama and Bipartisanship

I believe that President Obama is sincere in his desire for bipartisanship.  His willingness to meet with and listen to conservative columnists, and Republicans is indicative of his desire to change the tone in Washington.  On the stimulus bill, I think he just painted himself into a corner by letting Nancy Pelosi write the bill while he held those meetings.  Listening to the other side is a start, but it falls short of the definition.  It remains to be seen if President Obama recognizes where this approach fell short or if it really is just window dressing.

Democratic Leadership and Bipartisanship

The Democratic Leadership has a very different view of bipartisanship.  Their view is, “we stake out a position and you (Republicans) agree with it and that’s bipartisanship.”  If they don’t agree, they are rabid partisans, doing it strictly for future political gain.  But if you look at the definition of bipartisanship above, the Democratic Leadership is just not interested.  The stimulus bill was put together solely by the Democrats and when asked by a reporter if the bill was bipartisan Nancy Pelosi responded, “That depends on how the Republicans vote.”  That’s pretty much it in a nutshell.

When President Bush came into office, he brought with him his experience in Texas where he worked very successfully with the Democrats in the legislature.  However, the Democrats in Congress were so angry with the outcome of the election in 2000 that they never gave him a chance, voting against anything he proposed.

Republicans and Bipartisanship

The Republican leadership has expressed their appreciation to President Obama’s efforts to reach across the aisle.  However, as genuine as the gesture was they were still pretty much excluded from the legislative process.  They fully understand that elections have consequences, but they want to be heard, they want to offer alternatives, they want the opportunity to persuade.  If denied that by the Democratic Leadership, they will take their case directly to the American people and in 2010 get the public’s decision.

Is Bipartisanship Possible?

Is there such a divide that bipartisanship is just not possible?  Former Speaker of the House Newt Gingrich is trying to tackle that issue through a non-profit organization called American Solutions.  That organization polled Republicans, Democrats and Independents to find areas of widespread agreement.  The key to bipartisanship is to first find areas where you agree. Then look for areas where you differ but not so significantly that there is not room for negotiation and compromise.  Lastly, is to recognize those areas where the difference is so wide that you simply have to agree to disagree.  This is a list of ten initiatives that a majority of Republicans, Democrats, and Independents agree on.

1. English should be the official language of government. (87 to 11)
2. We want our elected leaders in Washington to focus on increasing the energy supplies of the United States and lowering the costs of gasoline and electricity. (71 to 18)
3. The option of a single rate system should give taxpayers the convenience of filing their taxes with just a single sheet of paper. (82 to 15)
4. Every worker should continue to have the right to a federally supervised secret ballot election when deciding whether to organize a union. (79 to 12)
5. Keeping the reference to “One Nation Under God” in the Pledge of Allegiance is very important. (88 to 11)
6. Congress should make it a crime to advocate acts of terrorism, violent conduct, or the killing of innocent people in the United States. (83 to 12)
7. We should dramatically increase our investment in math and science education. (91 to 8 )
8. We believe that if research indicates we could build clean coal plants in the United States with no carbon emissions, it would be important to build such plants as rapidly as possible. (71 to 8 )
9. Illegal immigrants who commit felonies should be deported. (88 to 10)
10. We support giving a large financial prize to the first company or individual who invents a new, safer way to dispose of nuclear waste products. (79 to 16)

As you can see by the percentages, the support for each of these ten measures is rather substantial.  Bipartisanship on any one of these issues should be very easy to obtain.  You just have to ask yourselves: how many of these are supported by the Democratic Leadership or President Obama?  You can see that a number of them are not only not supported, but adamantly opposed.

So what is your view of bipartisanship?  Is it where you surrender your principles and fall in line with your opponent?  Or is it trying to find common ground among all Americans and not pushing a partisan agenda where government runs the smallest aspect of your life?

He looked nervous.  He curled up the corners of his two hole cards, aces.  He eased them back down on the table and scanned the other players.  Nancy Pelosi had a stack of chips totaling $25 billion and he wanted all of them.  No, he needed all of them.  Desperately.  The other three, all Japanese, sat expressionless behind their dark glasses.  At every hand all they said was “Call”.   No raise.  No drama.  Very cool.  Very dangerous.

He looks again at the four cards on the table.  Nothing to help him there.  He needs another ace. He needs the ace he calls the Volt. Pelosi turns to him. “So, what’s your plan?”  He swallows hard, trying hard not to show it and says, “All in,” and pushes his remaining chips into the center of the table.  The dealer burns another card and then peels off the “river.” And we’ll be right back for the final outcome of tonight’s game.

GM on the Precipice

That must be how Rick Wagoner feels.  It seems he’s betting everything on the Chevy Volt. If he draws that ace, he’s a hero.  If not, he’s history.  So what are his chances?

If that’s all he’s got, they’re pretty long odds.  The Volt is not due to hit the showroom floor until 2010, and at a whopping $40,000 per copy.  Not a bad price for a Cadillac, but for an untested electric car with a 40 mile range?  That’s a tough sell.  Even at that, the $40,000 might not be profitable, just break even.  But, there will be a tax credit of $7,500 to help take the sting out of it.

Without Bankruptcy

Without a major revamping of their cost structure that can probably only be achieved through the bankruptcy courts, GM is still carrying $2,000 per vehicle in labor costs that its competition doesn’t have.  And what about those three players to his right in the dark glasses, do you think they are standing pat?  Although very low key, it is reported that Toyota, Nissan and Mitsubishi are all planning to introduce electric cars in the same time frame.  If they do that and they also have the $2,000 per vehicle edge, it will be very bad for GM and any bailout will go down the drain.

The other factor is the way the Japanese do strategic planning.  They typically do not look to just the next quarter.  They are known for developing 50 and 100 year plans.  That is not a typo.  So if they introduce a vehicle they will do it for the long haul.  Believe it or not the Toyota Prius has been on the market for seven years already.  The Japanese are not afraid to introduce a pretty good model and then continuously improve it and if they believe the direction is right, they are willing to wait for the results.  The Big Three, on the other hand tend to have a shorter planning horizon.  Witness Ford’s announcement that it intended to build 250,000 hybrids and then did a market survey when gasoline was about $2.30 per gallon, and decided that they should not go forward.  When gas prices took off they were caught flatfooted while Toyota was selling Priuses at a premium and they couldn’t make them fast enough.

New Administration, New Congress, New Energy Policy

Then there is the energy issue.  Putting more and more electric cars on the road is a good idea and a way toward energy independence.  However, the new administration and the incoming Democratic Congress want to kill the coal industry.  Coal currently generates 49% of our country’s electricity and when it comes to coal reserves, the U.S. is to coal what Saudi Arabia is to oil.  But the new incoming chairman of the House Energy committee, Henry Waxman of Beverly Hills, California, is more determined than ever to implement a green agenda and kill coal.

So what do you replace the coal with?  Oil? Gas? Nuclear?  On the campaign trail, I heard Barack Obama and Joe Biden mumble some things about nuclear being okay, but it was hardly a ringing endorsement.  Do they think for a minute that wind or solar are anywhere near replacing coal?  So, they actually plan to reduce our electric generating capacity by 49% and then not only replace it but grow it to be able to handle all these electric cars.  Where’s that plan?

If you don’t have enough electricity, you can’t charge up your electric cars.  If good old supply and demand does its usual thing, the price of electricity should skyrocket and I can tell you first hand that in New York, it’s not cheap right now.  If electricity skyrockets, whatever manufacturing is left in New York and other rust belt areas will be pulling up stakes left and right and heading south.  If that population follows the jobs, does that mean more votes for the red states and a shift in Congressional seats as well?

The Democrats better re-think that plan if they want to stay in power.