Category Archives: Government

“It only seems fair.”

Suggestion of the Day
Monday, August 11, 2008

If it’s illegal for us to lie to the government, why isn’t it illegal for the government to lie to us?

By “the government,” I’m referring, of course, to the President.

I do solemnly swear that I will faithfully execute the office of President of the United States, and will, to the best of my ability, preserve, protect and defend the Constitution of the United States.

True, there’s nothing in the Oath of Office which promises that the President will be truthful when he talks to the American people about matters of significant importance – although voracity might be construed from the words “faithfully execute” and Presidential lying is no way to “preserve” the Constitution.

No, for the President, there is nothing like the laws and simple process which compel ordinary citizens to tell the truth when testifying before Congress, in the courts, and to various other authorities. It is as if the American people are a somehow lesser entity, less authoritative, literally, and less deserving of respect than the institutions we have ourselves created to serve our purposes. We’re left, instead, with little more than the hope that our President is a person of integrity upon whom Congress and the American people can rely for the information they need to understand our circumstances and act accordingly.

How arrogant of any President to lie to us. What a grotesque perversion of the core principles of our democracy. What gives any President the right, if not simply that he or she can so easily get away with it? Maybe we should do something about that.


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Common Cents

Friday, January 18, 2008

Once again our government, and candidates for President, have decided to give millions of Americans money in the hopes of heading off a recession which may be, no one’s sure, coming soon to a community near yours.  The idea is that lowering interest rates – which is up to the Federal Reserve – and increasing consumer spending are the cure for any problem with our economy.  The Fed, which is an independent entity, is doing its job.  All the President and Congress can do is give the people money.  Not incidentally, this is a politically popular idea.  You and I will spend it, retailers will order replacement inventory and hire more employees, and distributors and manufacturers will follow suit as the effects of increased consumer spending ripple throughout the economy.  At least that’s the way it’s supposed to work.

Personally, I think there may be other reasons why we have recessions, factors other than the cost of money and available cash in our personal and corporate pockets which affect families and businesses.  But let’s just assume, for the sake of discussion, that President Bush, Congress and the candidates are right, and that it’s all about consumer spending.

The problem is that different people tend to do different things with extra money depending upon their specific circumstances.  Generally speaking, the more money and “stuff” people already have, the less likely they are to spend a few more dollars the government gives them.  Sure, we normal people could always use some new clothes, a couple of days off with our wife or husband, a new washer and dryer, you name it.  Practical or frivolous, we can always find something to buy with found money, but with different immediate and longer term effects on our local and national economies depending upon precisely how we spend it.  And then there are the credit card balances we ought to pay down, and the savings accounts that we’ve been ignoring lately.

The thing is, even if we did run out and buy things, it’s not at all clear how significant the impact on the economy might be, how quickly and to what extent our nation’s companies would order more, increase production, and hire back the unemployed.  These things take time, and what we want is a quick fix.  At best, what the President is considering will be a brief, miniscule poke at a huge economic beast, barely noticeable and quite probably without any discernable effect.  The economy will recover on its own, with the President taking full credit.

I have an idea.  Who among us is most likely to spend every extra dollar at their disposal, and do it immediately?  The unemployed, of course.  Give them jobs, and watch what happens.  The simple, and less expensive solution, is to give companies, large and small, a financial incentive to increase their total work force, preferably by hiring people who have been unemployed for some minimum time, and who have exhausted their savings and perhaps their unemployment benefits also.  Give new jobs to families who are most likely to spend every dollar they make.

The form of the incentive could be anything financial, but I like giving them credit, for a limited number of months, for the employer and employee withholding taxes their new hires will generate.  Think about the efficiency of what I’m suggesting.  We’re putting income into the hands of people who need it most, and are most likely to spend it.  The taxes we’re crediting back to the employer were income the government wasn’t getting anyway when those new hires were unemployed.  (By comparison, giving everyone money which is the current plan is just going to increase our budget deficit by billions of dollars – plus interest.  Don’t forget the interest.)  In many cases we’ll be saving the unemployment benefits we’re currently paying these new hires.  And these newly employed will be producing ongoing income to spend in the economy month in and month out, not just some one time, lump sum.

Easier said than done?  Of course.  Are you kidding?  I’m naturally lazy, and always underestimate the difficulty of everything.  Otherwise, I’m not sure I’d ever attempt to do anything if I really knew how hard it would be.  And I’m not alone.  Put a man on the moon by the end of the decade, for example?  Underestimation is one of our nation’s most endearing personality traits.  Will a program to encourage the hiring of the unemployed work?  It depends upon how easily our companies can rationalize putting on additional staff.  Could be we’ll need to give them a greater incentive than just a tax credit, but isn’t at least worth thinking about?

Is it really a good idea concentrating so many billions of dollars by giving some of the unemployed jobs, rather than spreading it around?  The fact is, for the same total dollars we give away, we get a greater, more immediate impact on the economy by giving it to families with the greatest need and highest propensity to spend.  Think about it.  Suppose the entire work force consists of 1,000 people, 50 of which (5%) are unemployed, and that we have $1 million dollars to spend – an average of $1,000 per worker.  Which approach is more likely to have the greatest and most immediate impact on consumer spending?  Giving everyone $1,000, or giving the 50 families who are unemployed $20,000 each (by reimbursing their employers) – not all at once, of course, but over several months as on-the-job income?  Too much?  Save some money.  Give them only $10,000 over time by subsidizing the wages and salaries they earn.  The program will cost us less, and accomplish more.

Does it make our President’s and government officials’ brains hurt to think about it?  I think we can figure it out.  If not our current government, not known for its creativity and initiative, maybe the next one we elect in the fall.

The Importance of Dirt for American Foreign Policy

Saturday, December 29, 2007

I’m not sure exactly what’s happening in Iraq.  The level of violence is down from what it was a few months ago, which is good.  Down maybe, but far from over.  I can’t tell whether or not things are really getting better, in spite of our being there or because of it, or if the bad guys are laying low for a while, maybe until after we elect a new President, hoping we’ll declare victory and pull out.  All I know is that Iraq is not the first time, and won’t be the last that our country chooses to engage in long-term military action for reasons of national security, and to help oppressed people in other countries.  (Shame on us were we to undertake such drastic measures for any other purposes.)

Without commenting on whether or not we should be in Iraq, or anywhere else for that matter, I’d like to make an observation that may help our foreign policy be more effective, and much less costly, both financially and in terms of the life on all sides that may be lost in the process.  For the record, it’s not just about lives disrupted, or military and civilian casualties.  It’s also about the rippling effects upon families, friends and communities to which the people most directly affected would have contributed in their own unique and special ways.  Life is more than a statistic on the 6 o’clock news.

The genesis of this particular idea goes way back to when I was a kid.  It was the moment when I first began thinking seriously about the importance of dirt.  I remember staying up past my bedtime one night, flashlight in hand, reading the original Dracula, by Bram Stoker.  The story, as I remember, was told in the form of letters written to his fiancé by Jonathan Harker, a young attorney who traveled on business to meet with the Count in Transylvania.  At some point in their relationship, there came a time when Dracula moved to London – presumably because there were more, better tasting people there.  I remember that it wasn’t a question of riding coach (literally) or first class.  No, he was shipped there in a coffin filled with soil from his native land.  Somehow I got the point, although it most certainly wasn’t the one Mr. Stoker had intended to make.  “Wow,” I whispered to myself, “This guy’s dirt is so important to him, he not only takes it with him, he sleeps in it.”  It was a concept that was weird and enlightening, both at the same time.

Decades later when my father died, I wondered if my mother, who was born in Annapolis where they had lived together for most of the 42 years they were married, would ever move to Florida, wherever, or even to nearby Virginia where I lived at the time, to be closer to my family.  The answer was, “No.”  My mother would never leave the soil where she was raised.  Other people, sure, but not my mother, and I understood that, too.  I am, after all, my mother’s son.  As for me, I like Maryland.  I like the way it has seasons, but that none of them is too severe.  I like the look of the place, and the sound of people who live here.  My dirt is nice, quality dirt that makes me feel comfortable – and I have everything to lose, and nothing much to gain from making a mess of it.

I’ve often wondered if that was the problem when the Watts riots occurred, and asked myself at the time, “Do people with quality dirt ever trash and burn their own homes and businesses?”

Have you ever noticed, when they show footage from Iraq, how the buildings in the background are rubble, and how desolate the place looks?  Ever wonder how these people get by given the way their economy has been decimated by years of civil strife and warfare?  Could it be that people living in these circumstances are more likely to foment anger and even violence against each other and foreigners?  I think so.  I think the higher quality your dirt, literally and figuratively speaking, the more you have to lose and the less likely you are to put it at risk whatever your personal politics.

The implications of this simple observation are that maybe we should be spending our time and money, and far fewer of our lives, helping these people to build their economies.  I’m not talking just lip service here.  Far from it.  What I’m suggesting is a major change in the way in which we relate to some of the countries that represent a long-term threat to our country and its allies.

Start with the basic utilities we’ve promised but largely failed to deliver in Iraq, give them the agricultural technology and skills to feed their families, and the plants and equipment necessary to produce, for themselves, the everyday stuff of life.  Let’s help them develop the employment and income these people so desperately need.  Better to build than to destroy, and let the seeds of capitalism grow, on their own, into the democracy and civility which are our best hope for national security.

How would we do all this?  Certainly not by giving the governments of Iraq and other countries money we can’t control and which would likely be misdirected.  No.  I recommend that we do it through our private sector, under the protection of our military if necessary, and it will be – but let protecting our business projects, largely manned and managed by the people we are helping, be our military’s primary objective.

Just to be clear, I’m not talking about using large government contractors, or even about private sector projects funded by our government.  Nor is this about oil.  Enough about oil already.  I don’t want to use our economy to develop and take control of the wealth of another country.  The other country isn’t ours for the taking, period.  What it is, this other country, is a market.  This is about American businesses – large, medium and small, from all sectors of our economy – spending their own money to help people in another country for all the usual self-serving reasons for which our businesses do anything.

All I want our government to do is offer American businesses:  Support through inter-governmental channels to enable private company investments in the foreign country.  Tax and other financial incentives, such as subsidized interest rates and loan guarantees, to make those investments – to give them the higher gross yields they’ll need to make from operations under admittedly difficult circumstances.  And highly focused military support, if necessary, to protect our business personnel when they are in-country, and the industrial and commercial projects they develop.  And then I want our government to leave well enough alone, and let business happen, private, non-government business — as long as our technologies are limited to those that won’t come back and bite us in the tush.  Otherwise, let the free market do what it does best.  Without a doubt, we need our military for self-defense, but it is by no means our only, or even most potent weapon in every situation, particularly when there is a long-term problem which brute force is not likely to resolve, and where aggressive military action may be counterproductive.

Give our companies tax and other financial incentives to build someone else’s economy, and to grow ours in the process – not government contractors, but the same large and smaller companies which provide the services, farm the land, and produce the products we consume every day here in the United States.  Use the power of our economy to generate jobs, income and profits here, by going into the business of helping people over there.  Let’s see if we can help these people improve their own dirt, and leave it to them to make the political and social changes necessary to preserve and continue to improve the quality of their lives.

Isn’t it better to train people to do productive, income producing work in their own economies, instead of having someone else train them to be terrorists?  Isn’t it smarter to give them a reason to work with us, rather than an excuse and the spare time to listen to those who would blame us for all the problems they’re having?

Do we do all this because we’re nice people?  Sure, but there are selfish reasons, too, in the benefits that would accrue to our own economy, the money and lives we would save, the potential for reduced threats to our national security, and for the enhanced standing in the community of nations we would deserve.  It’s one thing to ask other countries to join with us in combat, quite another to ask that they help themselves by joint venturing our investments in the people of a struggling nation.