Wednesday, August 24, 2016

The Arc of Government


         Throughout the entirety of history governments have sought to rule absolutely over their people whether by monarchy or by party rule.  This is an obvious and necessary response.  How best to protect yourself against an outside force but by unifying. 

Take a single village in the midst of the wilderness, say they are self-sufficient.  They grow their own crops, make their own clothes, cut trees for shelter and even take what little metal they have to make for tools and weapons.  If each family is left to themselves, they will argue over small matters and the village will be torn.  They need some judge at least to keep the peace, someone impartial who can institute some law.  At this stage they are safe from themselves but who is the watcher to keep watch over marauding invaders.  Even if such a watcher exists who will muster the villagers to fight, who has trained them, who can lead them?  A well trained village can possibly defend against a band of marauders but not a coalition of tribes or an army.  How can two dozen well-armed, well trained men defend their village against a hundred or hundreds of Vikings?  This means a fiefdom, or kingdom must arise. Coalitions are notoriously week in dealing with coordinated attacks. 

The arc of history is always towards big government for the purpose of defense but big government gets confused and thinks it exists for its own purpose, for the purpose of opulence of the state.  Moreover, since the time of Plato’s Republic government has sought to institute its citizens and make them vassals of the state.  Give them enough education but not too much, enough vigor but not too much, a family but only subservient to the state. 

America was the first country to break this model.  A ragtag revolution orchestrated by the rich elite who in times past would take a deal and sell out the people either weren’t given the proper compensation or had some spirit.  Benedict Arnold was not an abnormality but the norm caught in a sea of change.  I do not wish to excuse his treachery, for he pretended to be revolutionary only to return to the Crown.  When America was finally free of England and more importantly it’s taxes it could have very easily chosen to become a monarchy of its own.  I do marvel at the story, however fabled, that George Washington was offered the title of President for Life and chose to be cast to an elected term office.  The first words of the constitution are, “We the people”.  The first ten amendments called the Bill of Rights gives rights to individuals.  Rights are by definition those which we already have and government can only protect.    We already have the right to speak, write, worship as we wish, to travel and be secure and to pick up a weapon to defend ourselves.  Government, does not give us as rights the entitlement to others property or service without just or unjust compensation but only that to which we already are endowed by our creator.   America was unique in that it sought not to create an all-powerful government but one that could simply protect the country at large from foreign invasion. 

The major change happened seventy-five years later when an industrial society clashed with an agricultural society.  These two societies were at the fracturing point when a leader decided to push them over the edge by enforcing a law ending institutional slavery.  The civil war was not about slavery but about dominance, dominance of Washington over the states.  It has led to the ever declining states’ rights. At the time it was necessary, if there was two America’s one could be attacked and invaded and the other would stand idly by.  Necessity forced unity’s hand.   Again, in world war one and the depression that followed we needed to unify.  We were forced out of necessity to grow Washington.  Washington grew not just for defense but for standards, and the growth of economy.  All good things, the department of Agriculture used to offer suggestions for all farmers spreading the good practices of others but now offers handouts not to grow crops.  As an aside, communication is the great advancer, a farmer’s family can live for many generations on one plot of land never improving the crop or harvest.  Out of many such lands only one in a dozen or a gross might come up with a small improvement.  The more that improvement can be shared, measured and standardized can all benefit.  Again, this is what government has the potential to do well.  It does not need to harbor a secret for its own capital advancement.  Let the reader not be mistaken that I advocate government in all forms but government like all entities has its place and if it does its job well it makes all better and if it does its job poorly most suffer. 

              The great depression led to the most sweeping socialism the county had known.  Not shortly before, the federal reserve and the income tax had been established, no coincidence of course.  What better way to centralize government and therefore money than a good old fashion crushing debt crisis?  The country recovered and by World War II the country was in full government debt fueled capitalistic swing.  Every great invention for the next fifty years came from that war.  Truly the greatest and most terrible war mankind had ever experienced. 

              Despite the Orwellian scare of Big Brother, He turned out to be kinder and gentler. He pushed us to stop smoking, recycle and use mass transportation.  States were supposed to be independent if not sovereign counterweights against the all imposing federal state.  Chip by chip, they lost their prowess.  Now, they can do little more than tax and create imposing layers of bureaucracy.  Generally speaking, governors maintain the roads and regulate interstate taxation.  I can’t think of another viable function of state government.  They doll out money to schools which they collect from taxes, similar to the model for the rest of their functions.  Towns with mayors who used to do this job have disappeared and replaced by townships who have “supervisors” who collect the garbage and perform other mundane activities.  Police are regulated by the counties and their “executives”.  Rampant inflation is given euphemistic names like quantitative easing.  Our recorded inflation is close to zero but taxes, medical, food, fuel and any service that requires human labor increases by ten percent a year.  On the plus side we can buy a plethora of electronic gaming devices for the same price today as twenty years ago not indexed for inflation.  This, the experts say offsets real inflation as though you could eat your ipad.

              Our economy is not bad though.  Highly skilled workers have and continue to do well to provide for themselves.  Money changers, I mean bankers, continue to do outstandingly well.  Low skilled entrepreneurs also do well, those owning small shops or trucks that sell food and sweets.  Medium and low skilled workers have it difficult.  The government likewise has been ‘compelled’ to help.  Programs that were meant to provide an extra “supplemental” bit of food to extremely impoverished families now provide a generous amount to 20% of all US households.  Still, it is not enough to cover the entire food bill so the indignant protest.  The most laughable thing is the call for a living wage.  Everyone should have a living wage by earning it.  Paying someone more than the labor they deserve means someone else must get less, and the accountant in the middle will always take a cut.  Then, as in all economic systems inflation will rebalance the equation and the low skilled workers at the bottom with the false sense of security will again scream for more.  Fair or not fair, right or wrong but in every case government grows.  Our economy has a GDP of 14 trillion dollars, a federal budget of 4 trillion and if you add up all the state budgets I would assume another 2-3 trillion.  Then throw in all the top corporations and you have an economy which is 60 to 70 percent controlled by just 1-2 % of the country.  It might at this point sound like I am advocating a group like we are the 99% but I am not.  Those groups ARE the 1% because they all call for bigger government. 

              Shocking changes to the government would not make things better so the only way to go is bigger and more expansive government.  It’s coming to the point and will come to the point where there is no where left to grow.  You can’t have a federal government control 80% of all commerce because then you have straight communism.  I might be wrong about that number, maybe it’s 75%, maybe 85% but at some point there is no more economy.  Like in Venezuela which was only surviving due to high oil prices.  When the prices collapsed so did the society.  What we have is a list of bad choices.  From bad to worse, shrink the government which is painful to everyone and usually is not followed until conclusion like staying on a diet.  Second and much worse would be slashing government down to the proper size quickly.  It could be carried out without losing focus but would be extremely disruptive.  Thirdly, let government grow until it is a defacto socialistic state.  That is the easiest and the deadliest choice.  I suppose conquering foreign lands would be an option but we don’t have the stomach for it.  If we were to say (and I’m not advocating this) take over Mexico and Canada we would grow our assets faster than our budget.  Again, this would be a communist move because that’s how communism survives, by spreading.  

There is another way to go which is even worse than the current litany of bad choices.  We could push the globalist agenda.  It starts from the noble cause of a more connected and interconnected world. A global economy that can produce and design anywhere and everywhere supposedly benefiting everyone.  Whether the merits of free trade are more beneficial to the wealthy nations or to the poor I leave for another article to dive into.  What comes beyond that which we have already seen is corporations without borders, and states without sovereignty.  Internationalist groups and terrorist groups cross borders as they please.  Proper nations control less than they think.  Their leaders can be influenced with money, their elections manipulated by out of state entities.  People of the world so to speak.  This is the moment at which we are at where the leaders of our country influenced by foreign funded groups try to push elections in other countries towards desired paths.  Who’s desired path?  The people of that country, the people of our country, the leaders of our countries or the special interests who have power and influence over our leaders while holding allegiance to no one?

Finally, what comes at the end is a one world government.  It doesn’t need armies if it can use countries armies as its tentacles.  It doesn’t need currencies if there is only one.  Is a one world government a good thing or a bad thing.  Well, that depends.  If there were other planetary systems with strong economies and powerful militaries then like the village in the beginning of the story we would need to unite to stand up for Earth’s common good.  But without an external threat any world governing body will naturally become corrupt and bloated and counterproductive. 

Here comes the new world order, same as the old world order. 

Thursday, August 13, 2009

The Stony Brook Meal Plan is like Health Care Reform

When I went to college for my first semester they required you to sign up for a meal plan. There were three choices and they all cost the same. You could have 3 meals a day for five days at one of five locations on campus and $500 in extra spending cash to spend wherever you wanted. You could have 2 meals a day for five days and $1000 in spending cash or you could just have $2500 on your card and spend it where you like and when you liked. I took the middle plan. I liked the meals. They were buffet or restaurant style meals. I ate a lot of salads and lost weight. The next year they came up with a new plan. The new plan was they added up all the cost of all their facilities, people and shipping costs, divided it by the number of students on campus and asked you to pay up front the costs of all of the food service. Then whatever extra money you chose to put on would purchase food at cost. So the plan was whenever you went somewhere to eat you'd pay $1 for a hamburger and $0.25 for a drink. For one, no one believed these to be the true costs but putting that aside all of the buffet/restaurant places closed down and were replaced with fast food joints like taco bell, burger king, pizza and Chinese. No more salads and chicken for me. I gained weight. The quality and quantity of the food went down. Looking back I realized that they had no incentive to sell good food. They already had your money. The more you bought the more they lost and the less you bought the more they gained. What a great scam. The only good place on campus and the place I usually ate was the student activity center which only accepted cash.
The Stony Brook meal plan is analogous to the current Health care reform. They will have all your money up front and dole out medical care at a supposed bargain without any need to be competitive, cost effective, efficient, or effective. You will not be the customer any more, you will be the end user. The government will be the customer. In fact the worse the state of health care the more people will join the government plan and the more they can control how we live. Good luck with that.

Monday, July 6, 2009

Sarah Palin made the decision we should all make in that situation

I have always said that if it came between my job and my family I would choose my family, you can always get another job. I work hard for my job and I am willing to go the extra mile but if comes to never being home for my kids so I can get that extra 2% raise or promised promotion, forget it. At least my kids will remember my birthday.
The media and the political hounds were not satisfied that Palin lost the campaign last year, they want to see her personally and professionally destroyed. None of us normal people can understand the immense pressure that they must feel being followed and bombarded with frivelous lawsuits. Unlike movie stars political servants don't ask for attention they are trying to lead. All leaders need to be challenged now and again to keep em straight but this was ridiculous. They were attacking her character because she was one of those non phony balony people. She is honest, intelligent and capable but she's not witty. You can't have it all. Obama is also under several lawsuits but he has a lot more wealth and resources to fight them including a upfront huge down payment on a book deal when he leaves office. No other president has gotten away with the kind of route the rules he has.
So, Sarah Palin under immense legal and social pressure decided to take care of her family. She still has a young child. It may have been the Letterman comment after all that sent her over the edge. I fear the the dogs of hate will continue their relentless attack on this nice woman who ran her state well and bowed to pressure and stepped aside.
I don't think anyone including her knows her political future. I don't think she will go away forever but maybe she will be a behind the fence force for change. I think she would be best suited as secretary of state.

Tuesday, June 23, 2009

WHEN DREAMS DIE

Dreams are not just those sequence of weird events you have at night. Dreams are the life long goals you form as a kid that seem impossible but nothing is impossible when you are a kid. Several guests attending a wedding wanted to share pictures and videos more easily and YouTube was born. A bunch of guys wanted to search for "select videos" easier and google was born, a lone nerd wanted to show the world he could make them need him and Microsoft was born. It has happened and we all have some impossible dream.
My dream? I wanted to have a team of crackpot engineers and scientists inventing various inventions, some of my design some born of those who worked for me. I wanted to bring these inventions to light and expand. I wanted to be in control but also to create something that would live on with those who worked in control of a sort of employee controlled empire (Bill Gates is a sellout as they all are). I wanted to have an invention company.
There comes a point when you realize your dreams are likely (a near certainty) not to happen. I guess for the ones who come to the conclusion it's truly never going to happen it's easier, they pierce their ears, get a tattoo, buy a corvette or get a mistress. But for those of us who's dreams die hard, it's another matter all together. We can never really give up the dream but realize how impossible it really is. What are we going to do? Invent the next Google or Microsoft in our spare time at 10pm at night when the kids go to sleep? Are we going to invent nuclear fusion or discover time travel on our train ride to work. Likely not! We are over worked and under appreciated. We love our spouses and our children and God knows where we'd be without them but our dreams life locked away on some dusty shelf like our high school year book.
Childhood's end, where our dreams come to die. Who knows, some come back from the dead after years past but not many. You come to the choice between family and career and if your career is booming like a captain Kirk's you choose adventure but lament never having a family and if your family is booming like little house on the prairie you choose family and lament adventure. I guess you can't have it all.

Saturday, June 20, 2009

HEALTH CARE REFORM

There is a woman I know who worked her whole life as a home maker and then when her children were grown her husband died. She had never learned a career so she didn't have the skills needed to obtain a job with medical insurance. She was a previous cancer survivor so she wasn't qualified for private insurance. She had money because her husband was prudent and had a good insurance policy in place. Her husband's company whom her husband had worked at for 30 years dropped the family like a hot potato a month later. This woman and several million like her need help. However, the package that's being put forth will not only help this woman but will also pay for tens of millions of others who can't or don't work, tens of millions of more who are here illegally and attempt to "socialize" our medical system and I'll show you how.

The Idea.
(1) Let's start by creating the best insurance the world has ever seen.
(2) At a price that's more expensive then company sponsored insurance (that will be taxed) and less expense then private insurance.
(3) Let's offer free to anyone who is at or below poverty level (15% of the country).
(4) Let's provide subsidies for up to 400% above poverty level.
(5) Let's tax the population to get back half of this money by a National Sales Tax (VAT), an energy tax (climate change), and a host of new more subtle taxes.

The Problem:
This sound great but #1 the government can't pay for it. It is estimated to cost 1.7 Trillion dollars in ten years and as we know things always cost more. The cost will just keep rising. People don't believe Barack Obama when he says he can save this money by cutting other costs down. Remember the two trillion he "saved" after spending two trillion? Remember the 150K jobs he "saved" after we lost 2 million. You can fool all the people sometimes and some of the people all the time but you just can't fool all the people all the time.

#2, most of us who have jobs will keep our own coverage. Those don't have jobs will get this new insurance for free and now you will have a situation where not working is better than working. If you are not working and are a single parent you can stay at home get nice checks, food stamps and free health care. What is the incentive to ever go back to work? When you reward the lazy, incompetents and scammers you get more lazy incompetents and scammers.

#3 jobs will drop insurance every time you switch and rather just pay into the government pool.

So what's the answer?

(1) Let's great three categories of government sponsored but not government run insurance, bronze, silver, and gold. Bronze is an HMO like insurance which sucks but at least it's insurance. Silver and Gold, well you can probably guess what those are like. Most of us have silver.
(2) Let's give away bronze to all CITIZENS below poverty level.
(3) Let's provide some subsidies for silver up to some appropriate level.
(4) Charge $50 at the door of every clinic and Emergency Room.
(5) We will waive the charge if you are unconscious and in need of immediate emergency life saving care.
(6) Do not allow insurance companies to deny coverage based on pre existing condition or age.
(7) Companies can change price structure based on #6. They have to balance out their costs somehow.
(8) Flexible Health Savings accounts roll over and go from company to company. They are like 401k's you can save up from the time you're young till the time you're old. They earn interest by investing in bonds or cd's. Hey how about that?

These solutions and many other are just so glaringly obvious and while you may or may not agree with some or all of these our congress cannot seem to see past their big heart to help everybody with everything.

"Why are we even talking about the details when we don't know how to pay for it?" -John McCain

"Everyone deserves some type of health insurance but not gold plated." -Michael Savage.

Friday, June 12, 2009

THE NEW SOCIAL SECURITY

The problem with social security aside from being insolvent is it's a social welfare program instead of a savings program. It's pyramid scheme that is about to end. It needs to be fixed and not just patched. The goals of any restructring should be long term solvency, ownership, and savings. Here is how I would restructre the plan for NEW RETIREES.
  • Add up, calculate all the money someone has ever actually put into the plan. THAT IS THEIR MONEY. When they die it gets inherited.
  • No spouse payments/payouts. They get their inheritence. They have their own money if they have worked.
  • Payout is calculated by dividing up current amount by years and months until you reach 85.
  • You can take money out due to medical emergency.
  • When your money is depleted (you live a long time, med emergency) you are placed into welfare at perhaps a lower rate. Current retirees continue receiving their money.
  • You have a choice where your money gets invested in only a GUARANTEED vehicle. Federal bonds, state bonds, or CD's (you choose the bank). Guess what, we have a choice whether to fund washington, our own state or a bank which will lend the money out. People will naturally have some variation of return.
  • A tax is applied to simply pay for those who don't have money or who run out, ect. 1-2%
  • Limits of taxation are raised to 150K/300K married.
  • Allow people to save more then 7.5 / 15% currently. Whatever they save over that amount is tax free (not just tax deferred, TAX FREE) up to some % and some $$$ amount.

This will take away the advantage of early retirement because your money doesn't disappear. It will allow people another vehichle besides 401K's. It wil provide people with a safe safety net and allow people some choice and therefore some control on who gets to do what with the money.

Friday, June 5, 2009

Put GM out of our misery

Can someone please explain to me how a company that is probably the most unprofitable company in the history of the world is going to make a profit when it takes the following steps.

(1) Continue paying for 650k retirees pensions and healthcare when you only have 65k employees workign for you. that means for every employee you actually pay for you have to pay 1/2 salary for 10 more.

(2) Sell of your most popular brands and keep only the least popular brands.

(3) Close down the most profitable sales locations and keep only those sales locations that are in areas that agree with your political affiliation.

(4) Shaft real lenders thereby soley relying on the government.

(5) Keep the unions that destroyed you.

I predict they will lose twice as much money next year as they did this year.

What's the solution? Sell everything, give the government 60% of the sales, the union 20% and the bondholders 19% and the stock holders 1% of the proceeds and call it a day. Forget Canada.

People will continue to be employeed they'll just wear different hats.