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Terrorism Follies

by Bill O'Connell on January 10, 2010

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Do you remember the scene in the movie “Saving Private Ryan” where after storming a machine gun nest and losing their medic, the Americans have to deal with how to handle a prisoner they captured?  Some say shoot him on the spot others disagree.  They know they can’t take him with them as he will slow them down.  After much vigorous debate Captain Miller (Tom Hanks) decides to untie him, point him toward the American line and tell him to keep walking, with the hope that he will be captured by the advancing American forces. 

Later in the movie as Miller’s unit is in a pitched battle to the last man, the released German prisoner is among those killing Miller’s men.  After reinforcements arrive to turn the battle in the Americans favor and the remaining Germans surrender, the former prisoner smiles and nods to the soldier in Miller’s unit that acted as translator and argued for sparing him as if to say, “Hey, how’s it goin’ pal?”  The soldier lowers his rifle and kills the German.

I am reminded of this by the current situation with Yemen.  Started under President Bush was the insane idea of releasing enemy combatants where they can find their way back to the battlefield.  This stupid policy was, until recently, going to be accelerated under President Obama.  Either we are at war or we are not.  You can’t fight a war with half measures.  Either you fight it to win or let the enemy have their way.  If we are in a war and we capture the enemy they stay captured until the war is over.  We don’t need a bunch of lawyers standing on the sidelines tapping their foot and their watches and saying, “how much longer are you going to hold these people without charging them?”  Answer: until the war ends or hell freezes over, whichever comes first.

 Is It a War Yet Mr. President?

 Backed into a corner, on his fifth (?) try to explain what his administration is doing on the War on Terror (am I allowed to call it that?), he actually called it a war, at least against Al Qaida.  He has spent the better part of his first year in office giving the back of his hand to the Bush administration.  But after seven years of Bush keeping us safe and two terrorist attacks on our soil this year with Obama at the helm and his poll numbers sinking, he has come to the realization that he owns this now.

The tough Harry Truman talk is nice (“The Buck Stops Here”), but it is just words until you actually do something with the buck that just stopped on your desk.  Why is the spectacularly incompetent Janet Napolitano still drawing a salary?  In Obama’s world it seems to be that what he means when he says the buck stops here is that he is the only one subject to firing and since we can’t fire him, everyone under him keeps on keeping on.  But who appointed these people?  It was Obama.  So he should recognize that he blundered and if the underlings don’t have enough sense to fall on their swords and resign, he should flat out fire them.

 Vacations are Important.  Anti-terrorism, Not So Much

 After the terror attack at Fort Hood, you would think that perhaps President Obama would be a little more responsive to another attempted attack, but hey, he was on an Hawaiian vacation.  Nobel Prize?  Chicago trying to win a bid for the Olympics?  President Obama will travel across the sea for that.  But an attempted attack on America?  Chill, baby, chill.  How about his director of National Counterterrorism, Michael Leiter, taking a ski vacation?  Just because stopping such an attack might be considered counterterrorism and just because that organization just failed miserably at stopping such an attack, and just because we didn’t know why it failed or if another attack might be on the way, why interrupt time with the family over that?  Family time is important, so said his boss. Don’t worry, Mike, we’ll wait.

Behind the Curve

It seems that with each attempt the enemy is one step ahead of us.  So discussions heated up about these new body scanners that can find anything, so it is claimed.  Don’t get me wrong, I am a big advocate of technology, but I guess the real problem is best summed up by one pundit comparing our methods to the Israelis:

“The Israelis look for terrorists, we look for tweezers.”

Instead of reading body scanners, perhaps we should be training the TSA agents in reading body language.  That’s what the Israelis do.  If you are a Palestinian, sorry, but you go in a different line and you get more closely screened and questioned.  You may pass, but you are going to be thoroughly checked out. We should do the same.  Where is your passport from?  What visa stamps do you have in your passport indicating where you have been?  Why don’t you have any luggage Mr. Abdulmutallab?  Why did you buy a one way ticket?  Who are you staying with in Detroit?  I see you paid cash for your ticket, how much cash do you have left for your trip after you land in Detroit?  Do you have a credit card?  No?  Hmmm…maybe you should wait over there, while we check further.

 No technology is foolproof.  Having worked in technology for over thirty years I can say that with some degree of confidence.  It only takes one failure of the technology for a disaster to strike.  But if we spend less time trying to find that box cutter, shampoo bottle, tweezers, jar of honey, etc., and spend more time spotting someone who doesn’t look like they are on a nice business trip or a visit to relatives or who otherwise fit the profile of a terrorist, that’s right I said it: profile, we could probably become a lot safer without having to lock the bathrooms for the last hour of the flight.  If we had pulled the young Abdulmutallab aside and questioned him, he probably would have cracked like an egg.  Does anyone think for a minute that this kid would have given off no body language signals if questioned by a trained professional?  The right combination of skilled human observers and questioners along with technology, is what we need to be safer.   Rather than this:  We”re the TSA and You Can Count on Us!

Intelligence Sprawl

We also need to collapse the intelligence arms of our government back into one and shut the others down.  Roll back Homeland Security into the Department of Defense, put the myriad intelligence gathering arms back into the CIA, make people accountable and lessen the need for a coordinating center to gather intelligence from a dozen agencies correlate it and send it back out to the dozen agencies.  All that does is create more fiefdoms that don’t want to talk to the dummies in that other agency who aren’t as smart as we are.  As the old saying goes, “When everyone’s responsible, no one is responsible.”  Government is neither nimble nor overly cooperative.  The fewer handoffs between agencies necessary to connect the dots, the better off we will all be.

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Pick My Pocket. Please!

by Bill O'Connell on December 28, 2009

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Who doesn’t love a freebie?  Who does not get a thrill of good fortune by finding money in the street, no matter how insignificant the amount?  We may not believe in the Tooth Fairy, but many of us believe we have a rich benevolent uncle, Uncle Sam, who is willing to lavish upon us his wealth if only we would ask.  The sad truth is that Uncle Sam is not rich, but penniless and is running a ponzi scheme that would make Bernie Madoff blush.

Health Care for $20

One of the major reasons that health care costs are rising out of control is that no one is minding the store.  While Washington twists itself in knots to rearrange deck chairs on the Titanic of health care, we have little to no say in how our health care dollars are spent.  Our health care “insurance” system is not really insurance.  Insurance is meant to protect us from a financial catastrophe.  Going to the doctor for a checkup is not a catastrophe.  Paying a $20 co-pay for that checkup is like finding money on the street.  There is no way anyone can get a physical exam, except by a hooker, for $20.  It is a good idea to get a physical checkup every year?  Yes, then pay the bill and ask what you are paying for and make sure you need it.  You take your car in for service don’t you?  Do you file an insurance claim when you do?  Can you get it done for $20.  Let’s get real.  What we have is called third party payer and when someone else is picking up the tab, do we care what it costs?  Really?  But someone is picking up the tab.  Look in your other pocket, because you are.  If you are generally healthy and you get your annual checkup, your insurance premium (here in New York at least) will probably run around $10,000 per year.  But, hey, you only paid $20 for that physical!  What if you paid the full amount for the physical, say, $500.  What if your insurance premium was cut to $5,000 because you would pay most routine medical costs out of your pocket and what if you could put the $4,500 left over ($10,000 original premium, minus $5,000 current premium, minus $500 cost of checkup), into a tax free account that can be used for future medical expenses or retirement if you don’t use it?  If you are a young person and stay healthy into your mid-40s, you would have accumulated over $90,000 in your medical savings account and you still have catastrophic insurance coverage and the government stays out of the picture.

Retirement for Free

Like many well intentioned Government programs, Social Security, enacted during the Great Depression, seemed like a good idea at the time.  When enacted there was about 15 workers paying in for each recipient drawing out.  Today there are about a little over 3 workers paying in for each beneficiary.  Bernie Madoff would blush at the audacity of it.  On top of that the money that is paid into Social Security can only be “invested” in Treasury Securities so the return is lousy, but safe.  People reacted to Social Security by saving less because the government safety net was there.  Had people been encouraged to save for their own retirement, they would not be leaving their children this legacy of a ticking time bomb.  So today, many young people feel the government’s hand in their pocket when they look at the FICA line on their pay stub, but don’t believe they will ever get a penny back.  Nice concept.

Bring Home the Bacon!

What’s the measure of a good Congressman or Senator?  Bringing home pork for the district, no?  If you are like me, you get flyers every year or several times per year, touting how Congresswoman Jones obtained federal funding for that pier at the amusement park.  With 435 Congressmen you can count on this, for each $1 that your Representative brings home $434 leaves the Treasury for each of the other Congressional districts and probably more, depending on the power and seniority of your Representative.  Guess who’s paying for that Turtle Crossing in Florida?  that bridge to nowhere in Alaska? that airport in Johnstown, PA that no one uses?  That’s right, you are.  What if we decided locally if we really needed a pier at the amusement park, and if we did, pay for it ourselves?  Then we could let the people of Florida decide if they want to build a turtle crossing, the people of Alaska decide if they wanted a bridge to nowhere and the people of Pennsylvania decide if they wanted an airport that no one used.  Then we could cut federal taxes by an equal amount to keep them out of mischief and help us pay for these projects if we really wanted them.

Let’s Get Organized

There was a time in our history where labor unions performed a valuable service.  In those times when many industrial jobs were unskilled or semi-skilled, employers could dismiss someone on a whim and replace them within the hour.  Unions gave those workers some counterbalancing power and fairer treatment.  Today, we have a much more sophisticated economy and workers have more skills and mobility.  Union membership has declined accordingly, in the private sector at least.  Why is union membership still growing in the public sector?  What is different about workers in the public sector that they still need unions?  Are we suggesting that all government workers are unskilled?  Why do teachers need a union?  Are they not skilled such that they could sell their services to the highest bidder?  Why do unions fight merit pay for teachers?  Why are school principals, the de facto CEO of the school and who in New York easily make six figures, unionized?  Do you get an idea why our K-12 public school system is trailing the world in performance?

In Michigan, privately owned small businesses that provided day-care services suddenly discovered that they were part of a union and union dues were being withheld from their government contractual payments.

Ms. Berry owns her own business—yet the Michigan Department of Human Services claims she is a government employee and union member. The agency thus withholds union dues from the child-care subsidies it sends to her on behalf of her low-income clients. Those dues are funneled to a public-employee union that claims to represent her. The situation is crazy—and it’s happening elsewhere in the country.

Ms. Berry, runs “The Berry Patch” a private day care center she operates from her home catering to low income clients.  The money that was once paid to her, now goes to a union that does little for her.  She is “self employed and wants nothing to do with the union.”  Don’t you think we need more of these tactics in America?  Card Check anyone?

Going Postal

And let’s not forget the Postal Service.  As postal rates are again scheduled to increase on January 4, let’s look at this paragon of efficiency, that is actually authorized by the Constitution.  In 2008, the Postal Service lost $3 billion, and the Postmaster General John Potter pulled down $800,000 in compensation including $135,000 in incentive bonuses.  What do we have to pay this guy if he actually breaks even?  Also, let us not forget this is also a very heavily unionized operation.

Don’t Worry, You Won’t Feel a Thing

During World War II, FDR needed to raise more revenue to pay for the war.  Fearing a backlash, his team hit upon the idea of payroll withholding.  Knowing the potential backlash that would result when taxpayers had to write that big check on April 15th, he rightly figured that if he took a little bit each week, he could take a lot more in total.  Statists in Washington have never looked back.  It’s like the tax that was imposed on telephone service to pay for the Spanish American War that is still in place today.  Instead of picking our pockets every week, what do you think most Americans would say about the size of the federal government if they had to write one big check on April 15th?  There would be no tax rebates, because there would be no tax withheld.  Do you think Americans would force Congress to sharpen their pencils and scale back the size of government?

Help is On the Way

Ronald Reagan said, “The nine most terrifying words in the English language are, ‘I’m from the government and I’m here to help!’”  But perhaps the best example of how far from our founding principles our government has strayed comes from Congresswoman Rosa DeLauro of Connecticut as she spoke during a House End of Year Wrap Up Session:

“This House–we understand, we’re there,” she said.  “You can count on us because we believe that it’s our moral responsibility to make sure that you and your family need our help.” 

I don’t know about you, but I don’t need the House of Representatives making sure I need their help.  I need as little interference as possible from them.  Their meddlesome intrusions in our lives is killing what made this country great.  It is a point we cannot make often enough.

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Good Government, Bad Government

by Bill O'Connell on November 18, 2009

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If I asked you a simple question, what government organization works well, what would you say?  Let’s take a look at two government organizations and compare their effectiveness and motivation.

The Military

Whether you support our troops on the battlefield or want them to always stay home in their barracks, most Americans will say the military does a pretty good job.  Why? That is, why are they effective, not just why do people think so?  Well, they put a lot of investment in training and technology.  They seem to have solved the problem of integration, being based on merit rather than racial prejudice.  These are all important things, but I don’ t they get to the core of the issue.  The key question is, what happens if they don’t do their job?  They die…they die, the guy beside them dies, their buddies die, and depending on the size of the conflict, their families and country may eventually die.  With that kind of motivation, race is not even secondary.  If the guy next to me has got my back and I have his, I don’t care what color he or she is.  We do it right, we live;  we don’t, we die.

The K-12 Teacher

K-12 education comes under fire in this country, and rightly so, for failing to produce an educated workforce.  In New York, for example we spend over $14,000 per student, per year on education, far above the national average of around $9,000.  Are students in New York 50% smarter than the country in general?  Hardly.  Is the nation as a whole turning out well educated students?  Sadly, no.

Our K-12 public schools are a government run monopoly.  So what happens to a K-12 teacher if they fail to do their job?  If they have been in the job long enough to get tenure, nothing.  They will get a raise like everyone else.  So what motivates them to turn out outstanding students?  I’ll wait.

Let me be clear that I don’t want to lump all teachers together.  They are many teachers who, by having what  I suppose is a strong moral streak,  do a great job because they want to teach.  Okay, so let’s look at the teaching profession where there is a group that does their best because they get satisfaction from doing a good job.  Now, some studies come out that say the way to improve results is smaller classroom size.  The teachers’ unions get behind it and eventually push it through.  So what does that mean?  If you cut the size of the class in half, you double the number of classes.  If you double the number of classes, you have to double the number of teachers and thus have to go deeper into the labor pool to find them.  Before you took this step, we can probably assume that all the self-motivated teachers were already on the job.  So the additional teachers are motivated by what?

Co -conspirators

That brings us back to the teachers’ unions.  When government’s come under pressure to cut educational expenses, the airwaves are soon flooded with the heart wrenching commercials pleading to restore the funding “for the children’s sake.”  What you don’t hear is the trailer that says, “This commercial paid for by the PTA,” or “This commercial paid for by the Association of Concerned Parents.”  No, what you typically hear is, “This commercial paid for by the X Teacher’s union, Joe Blow, President.”

Who do the unions really represent…really? The students? or the teachers?  They want the funds restored so that their membership is not hurt and their dues are not curtailed.  If their true concern was for the students, why not support school vouchers and charter schools?  They fight the former with a vengeance and the latter, if it is not union organized.

Let’s Not Pick on K-12 Education

Let’s look at other government areas.  Government is the only area where union membership is growing.  How many people relish going to their Department of Motor Vehicles?  How efficient is the Post Office?  Amtrak?  Fannie Mae and Freddie Mac have a bonus compensation plan, which is a step in the right direction unless it leads to cooking the books and making extremely risky loans that lead to the near collapse of our economy.  How can we get this under control?

Controlling the Uncontrollable

Our government is trying to install a massive health care program that will cost a trillion dollars.  At the same time, tens of billions of dollars are stolen from Medicare every year and they can’t stop it.  Early this year, the Obama Administration passed a $787 billion stimulus package, spent $18 million to build a website to track it, and put Joe Biden in the role of watch dog.  How is that working out?  A recent report from ABC News, of all places, found that credit for creating jobs was given on the web site to Congressional Districts that do not exist.  A $1,000 grant was purported to have created 50 jobs.  The New York Times investigated and found that the $1,000 went to purchase a lawn mower.  It took from the time of the founding of the Republic until about the mid 1990s to accumulate $6 trillion in debt.  It has doubled since then, and it is projected to go from $12 trillion to $14 trillion by next year!

It cannot be controlled.  It is impossible to control.  The only solution is to cut the federal government down to size.  Take out the Constitution and read what the true functions of government are supposed to be.  The military, absolutely;  the Post Office, yes it’s in there; coin money; establish patents and copyrights; establish the courts; control the District of Columbia; regulate interstate commerce; make treaties; give the State of the Union address.  That pretty much sums it up and everything else should be left to the states and local government or the people.

We should jettison all the rest and cut this government down to size and get out of debt.  Department of Labor–gone;  Department of Health and Human Services–gone; Department ment of Housing and Urban Development–gone; Department of Transportation–gone; Department of Energy–gone; Depatrment of Education–gone; Department of Veterans Affairs–gone, rolled into the Department of Defense;  Department of Homeland Security–gone, rolled into the Department of Defense; Department of the Interior–gone; Department of Agriculture–gone.

The amount of money saved would be enormous.  Selling all the real estate and buildings would bring in more money.  We could then cut taxes to jump start the economy and run a surplus to cut the debt.  The next step would be to make it illegal for unions to organize government workers without a referendum approved by all the voters.  Side benefits would be less campaign money because there would be less government to influence.  Government would be more accountable to the people because it would be closer to the people, that is, at the state level or local level.  We can do this proactively, or wait until the government is bankrupt and we have to sell off the parts to the Chinese.

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Stimulus in Action

by Bill O'Connell on February 11, 2009

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The neatly dressed man from Washington, tapped Joe the Plumber on the shoulder and said, “Good news, sir, you’re part of the stimulus program.”

“How, so?” Joe asked.

“Well, you’re a plumber, right?”

“Yes.”

The man from Washington grinned and snapped open his attache case and pulled out a contract.  “We need to have the Community Pool repaired.  It’s a ‘shovel ready’ project that will get the country moving again.  But we need to start right away.  So sign here.”

Joe’s business was a little slow so he looked over the contract, felt confident he could meet the requirements, signed on the dotted line and said, “I’ll get started right away.”

A Few Weeks Later

Joe was walking around the project with the building inspector, getting the final approval on the project.  As they completed their circuit, the man from Washington showed up.  “How’s it going?”

“It’s looks like we passed the inspection,” Joe said, “and we’ll be cleaning up now.”

“Great,” the young man said pulling two envelopes out of his attache case.  “Here, you go.”

Now Joe recognized what looked to be a check so he opened that first.  “Wow, that was fast.”  Smiling, he folded it over and put it in his shirt pocket.  He then looked down at the other envelope, and glanced quizzically at the government man, who was looking at the pool, “What’s this?”

“That? Oh, that’s your tax bill.”

“Tax bill?  What tax bill?”  Joe ripped open the envelope. “$19,000!!! What the hell is this?”

The Washington man looked sadly at Joe.  “Well how did you think the stimulus package got funded?  The Federal government gets its money from taxes.”  Getting no reaction from Joe, he burst out laughing, “Did you think Uncle Sam was sitting on some massive inheritance? Do the math: $800 billion bailout, 3.5 million jobs, that’s $228,000 per job.  Since you only got one month’s work out of this we divided it by 12, thus $19,000″

“How am I supposed to pay for this?”

The Washington man looked genuinely insulted.  “Don’t worry about it.  There’s no time limit.  What you can’t pay, your kids will pay, and then your grand kids.”  He snapped closed his briefcase, shook his head as he turned to walk away and muttered, “What an ingrate.”

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Government Help

by Bill O'Connell on December 26, 2008

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I just started reading a book that was recommended to me on the need for a Green Revolution.  I won’t disclose the name of the book until I have finished it and will provide a review, but there are some interesting points to be made.

The author approaches the subject from a liberal perspective.  Now, I know that many conservative pundits will read Green and see red.  They believe that the effort to go green is to subjugate us all to living back in the stone age.  I approach the subject with a different view.  I personally believe we will stop using oil long before we run out of it.  I also believe that people who carelessly pollute the environment should be stopped and punished.  This is particularly true when I am stopped at a traffic light behind a car bearing an Obama bumper sticker and they roll down the window and toss their cigarette butt on the street.  Serious hunters and fishermen tend to be conservationists as well since carelessness on that front is only going to come back and prevent them from doing what they love.  So if we start with the premise that we all want a planet we can inhabit and enjoy for a long time, both liberals and conservatives, we’ll probably come up with some pretty good solutions.

I also believe that if we can produce energy cleanly, why not?  The more we do that and learn how to do it more efficiently then the sooner we can fulfill my previous prophesy of not needing oil it long before we run out of it.  My main beef with the book so far is its belief that the solution lies in government “leadership” which I consider an oxymoron of the highest order.

I believe that many of the problems that we are now addressing are the direct result of government programs.  And as government continues to grow and take away our liberties and impose more “solutions” on us that don’t work, the deeper our problems will become.  Let me cite some examples:

  • The Financial Crisis — the current financial crisis was triggered by the collapse of the housing bubble.  At the core of that collapse was Fannie Mae and Freddie Mac.  The former was created during the Great Depression, but like many government programs that might be a good idea when they start out, they are never shut down when their intended goals are achieved.  The bureaucrats, in a scramble to keep their jobs, go find another mission which eventually leads to trouble.  In the Johnson administration Fannie Mae was “privatized”, however, government backing was always assumed.  Johnson didn’t want Fannie’s debt on the federal balance sheet when he rolled out another massive government “solution” the Great Society.  Along comes the Carter Administration and the Community Reinvestment Act which compelled lenders to make riskier mortgage loans.  In the Clinton Administration, Attorney General Janet Reno got a lot more aggressive in threatening banks that didn’t step up lending of more and riskier mortgage loans.  President Bush may have called for more oversight of Fannie and Freddie, but at the same time he wanted to increase the level of home ownership.   All of this increase in demand drove home prices to unsustainable levels and once those who should have never gotten a loan in the first place couldn’t pay them back, the whole house of cards collapsed.
  • Social Security — Now here’s a ponzi scheme that would make Bernard Madoff look like a piker.  It was a government program that started out with good intentions, that no one has had the political courage to fix so the government keeps kicking the can down the road for the next generation to deal with.
  • Education — In the Carter Administration there was concern that we were falling behind in education.  The government’s solution?  Split off education from the Department of Health, Education and Welfare, into a stand alone Department of Education.  Since it’s inception in 1980 Congress has appropriated $1.06 trillion to the Department of Education. So how did that work out?  Now we graduate high school seniors that many colleges have to teach them high school skills so that they can succeed in college.  What about the free market?  If you mention school vouchers the liberals will scream.  School vouchers will ruin the public school system.  But almost everywhere it is tried, it is successful.  Where is Barack Obama going to send his children to school?  Not to public school.  At least Jimmy Carter sent his daughter to public school, so let’s give him points for not being so much of a hypocrite.
  • Energy — After the 1973 Arab Oil Embargo, when nuclear engineer Jimmy Carter took office, the Department of Energy was created adding another huge bureaucracy to the already massive government.  Some of the arguments you hear today is that Brazil is energy independent and one reason for that is that they make ethanol out of sugar cane.  If the Brazilians can do it, why can’t we?  During the Carter Administration they used the argument that during World War II the Germans made petroleum out of coal.  If they could do it, why can’t we?  That brought about the Synfuels project.  Congress appropriated $100 billion for this boondoggle and every project under this program failed.  A proven energy technology is nuclear.  However in this country, since 1979, environmentalists and liberals killed the industry.  On Long Island a $5 billion nuclear power plant was built and all but ready to throw the switch and provide clean nuclear power to replace or cap the oil fired power that had until that point supplied Long Island’s needs.  The plant was ready, but protests that evacuation was impossible, shuttered the plant.  The cost of the plant was dumped on the taxpayers and now the hue and cry is that we are producing too much CO2.  The book mentioned the ignominy of President Bush going to Saudi Arabia to ask for a price break when oil prices were skyrocketing.  I think the true ignominy was that we were begging foreign governments to give us a break when our own government said we couldn’t expand oil exploration here.  Cuba and China could drill off of our coast but we couldn’t.  If the issue is a lack of oil refining capacity, put yourself in the position of an oil company CEO. You know that you can build a new refinery at a profit, but when you look across the bargaining table you see your government putting all kinds of obstacles in the way and at the same time pumping subsidies into ethanol providers who are your competition.  Are you going to place that bet on a refinery, or make do with what you have?  And while we’re at it, how efficient is it to stop the refinery to re-formulate a dozen or more different gasolines for different parts of the country?  That’s our government’s energy policy.  But, we’re supposed to believe that government can really tackle and solve our energy problems going forward.
  • Food — While government subsidizes the ethanol producers to make a product that no one would buy if not for the heavy hand of government, they are at the same time paying farmers not to produce so that prices will remain high.  So corn is diverted from feeding cattle, producing corn syrup as a sweetener substitute for sugar (which is subsidized at twice the world price), and being used as a food by itself, driving up the price of all foods that have corn anywhere in the chain, our government is also telling farmers not to produce and pays them for it.  So call me skeptical if I don’t think that in the absence of government interference, we couldn’t feed the world.
  • Automobile Bailout — We are now faced with bailing out the Big Three Auto Companies.  Why?  Well there are many reasons and I think chief among them is the government mandated CAFE standards.  When the first Arab Oil Embargo hit in 1973 people who wanted better mileage cars could buy from the Japanese and they did.  For years, you could get a high mileage car if you wanted to by buying a Volkswagen Beetle.  So why did Congress feel it was necessary to get involved?  The market provided the full gamut of choice that people had the liberty to make.  But government felt they had to intervene.  Was the motive to provide high mileage cars to help the environment or was it to appease the United Auto Workers (UAW) by limiting Japanese cars?  If you look at the history further the motive may become a little clearer.  When that didn’t work, because people still wanted to buy Japanese, the UAW figured it must be because wages are so low in Japan they couldn’t compete, so let’s make them build the cars here in the U.S.  The idea behind that was that the UAW would organize those plants and make them just as expensive as the Big Three.  With CAFE, and UAW organizing the foreign owned plants, the problem would be solved.  It turned out that the workers at the foreign owned plants didn’t want to be organized by the UAW.  So GM, Ford, and Chrysler were saddled with the costs that the union and management agreed to, and the CAFE standards were forcing them to build cars they couldn’t sell at a profit.  The Big Three could still sell cars at a profit, such as trucks, Cadillacs, Lincolns, but having to average the mileage of those vehicles with higher mileage cars, they might have to sell seven subcompacts for every Cadillac to meet the CAFE requirement.  Since Americans can buy a Toyota, Honda, Nissan or many other brands if they want a well priced, high quality, high mileage car, the Big Three have to price theirs at a loss to compete, because if they don’t sell the small ones they’re not allowed to sell the big ones.  What would happen if the market were left alone?  The foreign makers would supply the high mileage end of the market, the Big Three could make money selling trucks, SUVs, and high priced cars.  They could plow those profits back into the next generation of vehicles and as the price of gasoline climbs they would either continue to shrink to become smaller companies or they would develop a competitive product.  The problem is our government, through the CAFE standard has bled them of any profits.  They have nothing to plow back in to R&D to make a new generation of fuel efficient cars, all they can do is demand a bailout or cost the economy 3 million jobs.
  • The New New Deal – This is the one that scares me most of all.  To address the current economic calamity we here that the Obama administration, nostalgic for the days of FDR, is going to create a new New Deal, only bigger and bolder.  The problem is that many people believe that FDR and the New Deal actually got us out of the Great Depression.  Folks, the Great Depression was ended by World War II, not FDR.  It dragged on for twelve years, and many of the steps intended to “fix it” made it worse and prolonged it.  From the Smoot-Hawley tariffs that killed international trade, to contracting the money supply instead of expanding it, to raising taxes instead of cutting them, to having government entities like the TVA competing with private utility companies, I shudder to think of the fixes this new administration is going to attempt.

Government just grows and grows, takes more and more of our liberties away, and screws up the economy with program after program.  It’s time we went program by program and measure its performance against its original goals and shut down any program that isn’t working, cut taxes that were needed to fund these beasts, and return the money to the people.

As far as going Green, I believe it is something that is important and that we should do for our long term benefit.  However, I believe it should be market based, not driven by some bureaucrat in Washington, that decides that this technology is better than that one.  They are not smart enough.  No one is.  If we need the government to help to fund basic research because there is no commercial application on the horizon for a private company to fund such research, fine.  If some financing help is needed to reach a tipping point for some early adopters similar to SBA backed loans, I think that would be okay as well.  But the focus should be on letting the market decide.

The idea that today the world is too crowded also makes me wonder.  If you took the population density of Manhattan island, then 3 times the current world population would fit in the state of Texas.  That leaves a lot of space remaining.

Are there problems to overcome?  Yes. Do we have the ability to overcome them?  Yes.  Is it better we start working on them sooner rather than later? Yes.  But, is it a good idea to expect our government to lead us there?  No.  Not by a long shot.  Let’s dispense with the scare tactics.  Let’s get the government out of our way rather than looking to government to come up with a solution.

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The Truth Behind Proposition 8

by Bill O'Connell on November 29, 2008

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The scene was rather startling, an elderly woman holding a cross in her hand peacefully demonstrating for Proposition 8 in Palm Springs, California and some miscreant viciously slaps it out of her hand.

At another venue in the Castro district of San Francisco a group of evangelicals were peacefully gathered on the street praying and making themselves available to anyone who wanted speak to him.  One young lady’s bible was stolen and when she asked that it be returned, her request was met with kicking and punching. Nice. So much for the city of tolerance.

So what we are hearing now, which is a formula we have seen before, is if you lose at the ballot box pick up your marbles and head off to find a activist judge who will discover within an evolved Constitution, the fundamental right that everyone missed for the last two hundred plus years and declare the will of the people null and void.

What’s This Really All About?

Here is the actual text of Proposition 8 (leaving out the legalese regarding where it fits in the California Constitution to just get to the meat of it):

SEC. 7.5. Only marriage between a man and a woman is valid or recognized in California.

That’s it.  If you landed here from another planet you would probably wonder what’s going on?  If you are a foreign visitor and see this on the news you would probably think we had lost our minds.  Who would propose a constitutional amendment to define what any idiot knows to be true?  What should we look for next?  A constitutional amendment that defines the world as round?  The sky blue?  The grass green?

But this is not about rights. It is not about tolerance. It is not about fairness.  It is about mainstreaming.  It is about a definition. It starts by tearing down a definition that has existed for several millennia, the definition of marriage.

Once that definition is altered, then terms like husband and wife lose their meaning.  After all, if you are talking about the marriage of Jim and Joe, who is the wife?  If you are talking about the marriage of Jane and Mary, who is the husband?  If husband and wife lose their meaning, then what will soon follow is that it will become politically incorrect to use those terms at all.  Any instance of husband and wife will have to be stricken first from any public documents then eventually from all documents.  In the end we will all just be spouses or significant others or some other bland descriptor.

The reason, in my humble opinion, why the battle lines have been so starkly drawn and the fighting is getting so fierce and will continue to do so, is because this is not about adding to the rights of gays.  It is about taking away how the majority of Americans define themselves.  They just don’t see it as an equivalency.

If you took three islands and put all the heterosexuals on one island, all the gay men on another and all the gay women on the third and came back in 100 years, only one of those three islands would be populated.  So how does A=B=C?

What Was the Point of Marriage in the First Place?

Marriage and the laws that eventually gave it protection and encouraged it were for the purpose of bringing children into the world.  A man and a woman would come together, make a commitment to be bound to each other, to be responsible for each other and in that family unit bring children into the world and provide for their protection, care, and upbringing.  It was survival, not only for that family, but for the community as a whole.

Are there exceptions to the rule?  Yes.  There are couples who for biological or other reasons cannot have children and there are couples who do not want children.  For the former group adoption has been an alternative.  In the case of homosexuals, the rule is the exception.  They cannot have children without adoption or by involving a third party.  So again, how is that the equivalent of marriage?

It’s Not About Rights

Prior to 1920, women were not allowed to vote.  But with courageous leaders like Susan B. Anthony they fought for those rights and won them through the legislative process and by amendment to the Constitution.  They didn’t seek out an activist judge to redefine the term “male” to mean both men and women.

In the 1947 movie, “Gentleman’s Agreement,” the character portrayed by Gregory Peck poses as a Jew to write about the discrimination against Jews in America.  What was the solution?  Did Jews find an activist judge who would redefine them as Episcopalians?  Can you imagine them making that case?

“So, Mr. Levine,” the judge asked, “you want to become an Episcopalian?  Then why don’t you just become one?  Why are you here?”

“No, your honor, I’m perfectly happy being a Jew. I don’t want to become an Episcopalian; I just want to be called an Episcopalian.”

“Let me get this straight.  You want to continue to be a Jew, worship like a Jew and live the life of a Jew, you just want to be called an Episcopalian?”

“Right.”

” Why?”

“Life would be so much easier.”

The battle surrounding Proposition 8 is a similar one, gays don’t want to marry someone of the opposite sex in the traditional definition marriage, they just want to be defined the same way.

What Does Sex Have To Do With It?

I think that most Americans are open to the idea that the rights that gays are seeking, such as the right to share and inherit property, the right to visit a sick partner in the hospital, the right to make decisions on the part of a partner that currently go to the next of kin, should be allowed.  But taking it a step further, why should it be limited to those who have sexual relations?

Let’s take a hypothetical case of Felix and Oscar.  Felix and Oscar are heterosexual men.  They are getting on in years, both in their early eighties.  They fought together in WWII.  Their wives are both deceased.  They are not physically attracted to each other.  However, they both feel that at this stage in their lives they would like to look out for each other like they did on the beaches of Normandy and the Ardennes forest.  They want to buy and share a house together, pooling their resources, and look after each others health, and leave whatever financial assets they have to the surviving partner.  Their families, though distant, have no problem with this arrangement.  Why couldn’t these two gentlemen have the same rights that gays are seeking?  Do gays seek a special class that only includes those who are sexually intimate?  Why shouldn’t Felix and Oscar have the same rights?

Stick to the Rights Issue

If gay advocates stick to the rights issue and be inclusive such that any two people, who want to be legally bound and committed, can have the right to share, look after, and care for each other, these rights that gays are seeking would probably be granted quickly.  But if the objective is to tear down something that has existed for several thousand years in order to forcefully mainstream a way of life, then they had better be ready for a battle.  Time and again gays are asking straights to be understanding, to be fair and to be compassionate.  Perhaps it’s time to turn the tables where gays should be understanding, fair and considerate and leave marriage well enough alone.

Most fair minded Americans will support individual rights and oppose discrimination.  But if their way of life, which is not discriminatory, comes under attack you can expect them to battle back.  Marriage is not discriminatory.  It is a loving bound between a husband and a wife.

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Bailing Out the Auto Companies

by Bill O'Connell on November 11, 2008

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The conga line for companies with their hands out forms on the left.  The next ones bellying up to the slop trough are GM and Chrysler.  They need $25 billion to help them through a tough patch or they may go out of business.  It is a loan?  Is it buying a stake in the company?  Is it that thing of which we dare not speak– socialism?

What’s Next?

The question is are we, by the continued intervention of the government, managing our way out of a recession and into a full blown depression?  For all the warm memories of FDR, the depresion lasted more than twelve years thanks to, “We’re from the government and we’re here to help.”  Perhaps it’s time to take our medicine, pull the covers up under our chin, sweat it out, and get back on our feet.

Business, like many things, runs in cycles.  There are up cycles and there are down cycles.  We can’t eliminate them, they are a necessary part of the process.  But just as there is no cure for the common cold, sometimes it is best to let it take its course as soon as possible and be done.

Was Government Intervention Wrong?

I don’t believe so.  It was unfortunately necessary to end the panic.  When lenders have no confidence that if they lend they will be paid back, and if they have non-performing assets and they can’t sell them because they don’t know how to price them, the whole system locks up.  The system needs a lender of last resort and the only one big enough to step into that role is the government.  However, that should be for the least amount of time possible.

The Problem with the Auto Industry

The auto industry has had 35 years to figure this out.  With the Arab Oil Embargo of 1973, Japanese auto companies made major inroads into the automobile markets.  Imagine buying a car that got 20 miles per gallon, rather than 8, was better built, and cost less.  Well, that’s what the Japanese companies were offering, but what did Detroit learn?  Union contracts too expensive, let’s invest in robots and get rid of the expensive people!  GM bought boatloads of robots and later ended up scrapping them.  Why?  Because the workers weren’t the problem.

Who transformed the Japanese auto industry?  An American by the name of W. Edwards Deming.  After World War II, Japan’s industry was in shambles.  Deming went to help them get their industry back on its feet and taught them about statistics and quality control.  They learned their lessons well.  They focus on incremental changes every day.  If someone sees a problem on the assembly line and takes action to stop the line, he doesn’t get chewed out, he gets applauded.

The Big 3 have had all this time to figure out what they were doing wrong and fix it, but what did they do?  During the good times, they just rolled along.  If signing a big labor contract kept the peace and kept the factories running, they would buy off the unions.  But when the trouble starts, there’s no room to maneuver.

Leading the Way to the Future

The Japanese saw the need to cut back further on fuel consumption, but they knew there was a limit as far as how much mileage you could squeeze out of a gasoline engine, so they came out with hybrids.  Initially they were a novelty, but when gas was headed for $4 per gallon, they we economical.  Where was Detroit on this?  Lagging behind, of course.  Don’t develop a hybrid car until your customers demand it, but by the time they do, they would rather buy the tried and true hybrids being built by Toyota and Honda.  Ford promised to produce 250,000 hybrid cars but rescinded that pledge nine months later.  Why?

According to a Ford spokesperson, an internal panel of experts analyzed customer interest in hybrid cars and did not feel that there was enough demand to warrant the expense of building 250,000 hybrids.”

What was the price of a gallon of gas when they made that decision? $2.20, the lowest it had been in ten months.  The other half of that article quoted above said, “Toyota remains top hybrid producer.”  GM is now placing a very big bet on the Chevy Volt, which will be an electric car scheduled to launch in 2010.  Although there is little fanfare, Toyota, Nissan and Mitsubishi are all planning electric cars in the next two years.

To Bail or Not to Bail?

So why should the taxpayer be on the hook for the mistakes of the Big 3 auto maker’s management for these past 35 years?  Perhaps they should just go into Chapter 11, reorganize and come out as more competitive companies.  Why prop them up so that they can stumble along for another 5-10 years until the next downturn and come back to the trough?  The stockholders have been electing the boards of directors for these companies for 35 years and buying their stock.  The boards have been hiring the management team and providing them with their compensation.  The management team has made the product decisions, negotiated the labor agreements, and all the other missteps.  Why should American taxpayers have to step up to the plate and bail them out.  They got themselves into this mess, let them get themselves out.

But that’s just my opinion.

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