Archive for June, 2012

June 29, 2012

Supreme Court of Last Resort?

by Steve Dana

Like a lot of us, I was sure the Supreme Court would make a favorable ruling on the Affordable Health Care case and render the whole thing unconstitutional.  Sadly, that didn’t happen.  I never actually read the act so I’m not sure why I thought it would be overturned.  I guess that NOT reading thing is a failing we all suffer from.

With regard to the Court’s ruling, the two sides can argue about the motivation of Justice Roberts and the merits of the health care statute till the cows come home but the fact remains until the thing is repealed it is the law of the land.

In the legislative arena we see majority parties jam through bad laws every day; whether it’s a state legislature or the US Congress, the majority rules.  I don’t remember which pundit said it but I have to agree that the laws passed by a majority don’t make them fair or just or right but they are legal. The recourse is to amend or repeal them. 

And, whining seldom changes a thing.  For all the years that the Democrats ran roughshod over the state of Wisconsin the Republicans had to take it.  That was just the way it was. 

Then, the tide turned and the remaining Democrats had to taste a little of their own medicine. 

Needless to say payback’s a bitch.  Interestingly though when they were getting their lunch handed to them, instead of gracefully taking it, they bolted the legislature to prevent the Republican majority from voting on legislation they disagreed with.  A very childish response revealing something about their character but again, whining doesn’t change a thing but it can make you look really stupid.

In all my years in government I have been a champion of process.  Reliable, predictable process is what makes the system work.

In the case of the Obamacare Affordable Healthcare Law the Democrats held a super-majority in both houses of the Congress so they didn’t have to follow the normal process prescribed by their “rules” because they were able to “suspend the rules” when it suited their needs.  The two thousand six hundred page law was drafted outside of the normal process and the substance was never debated in any committees so when the whole thing was engrossed for approval very few people knew what actually was in it.

Speaker Nancy Pelosi was crowing at the microphone prior to the House vote, “We have to approve the bill before we can find out what’s in the bill.”  And all the Democrats were actually onboard with her?  What’s with that?

Maybe they did know what was in it and knew of the firestorm that would follow if it were exposed in public.  So they consciously demonstrated a willingness to subvert the process and deceive the country with their supposed ignorance rather than taking the heat of the normal public process.  Those House members who supported that action should have been vilified publicly at the least and thrown out of office at the first opportunity.

From a process standpoint that should be a fatal flaw.  Not so much a Constitutional flaw but clear sign of bad faith government.

So here we are, the court has let stand one of the worst laws ever passed by the Congress.  In the Majority Opinion, Chief Justice Roberts tries to clarify that the Court’s job is not to invalidate bad legislation because it’s bad, but to determine the Constitutionality of the legislation.  In a very carefully worded opinion the Court ruled that most of the law would survive. 

Bummer!

It would have been so simple for the court to overturn the law and send it back to the Congress for a “do over” but it didn’t happen.  And in spite of the fact that I would have preferred that outcome the “process guy” in me knew the only real resolution for bad law is to amend it or repeal it in the same venue as it was created.

If we rally the troops to elect Republicans this fall, what exactly will our healthcare bill look like?  In the past two years the Republican majority in the House has held a bunch of hearings and voted on more than one healthcare bill that died in the Senate.  So do they have one they are willing to fall on their sword for?

Republicans need to articulate what Healthcare Reform looks like for them since the Democrats have their deal on the table.  Complaining about bad legislation is not a substitution for a better alternative. 

We need to elect enough members to both the House of Representatives and the Senate to send a bill the new President that will accomplish what we wanted the court to do.

I hope we’re up to the task.

June 16, 2012

Immigration Reform as I see it!

by Steve Dana

I don’t remember a time when we haven’t been talking about Comprehensive Immigration Reform.  Both political parties use the term and at different times each party has proposed legislation that ultimately failed to pass both houses of Congress.  I don’t know whether the content of Republican sponsored reform compared favorably with Democrat sponsored reform.

The fact that both parties drafted legislation would suggest there is common ground worthy of keeping the negotiations going. So what were the sticking points that prevented completion?

Why do we call it Comprehensive Immigration Reform?  Why don’t we just call it Immigration Reform?  So what’s wrong with our existing Immigration legislation?

From my perspective there isn’t a problem with our existing policy.  There might be some issues with the number of folks we allow to emigrate from foreign lands, but the process appears sound.  That would suggest the issue isn’t immigration reform at all.

In the context of the national debate the two issues are Border Security or a lack of it on our southern border and the large number of Mexicans who have entered our country illegally and have been allowed to stay for many years with the full knowledge of the government.  The justification being the need for workers willing to do jobs “Americans” wouldn’t do.

The truth is the old system worked well for Mexican workers who came over the border to work for the season with some sort of seasonal work permit and then returned home for the winter.  The agriculture interests needed seasonal workers and the permit system was one solution that worked but was abandoned in the 1980’s.

I had personal experience in the 1970’s of working on a corporate farm in Central Oregon where there were migrant workers who started in the spring harvesting something in Arizona and worked their way to the Canadian border as the harvest progressed north.  In my case we had a couple dozen Mexicans harvesting potatoes.  The important consideration was the fact that there wouldn’t have been work for those guys before or after the harvest.  They would have been temporary hires for a couple weeks and they would have been laid off.  The temporary worker permit system worked.

For me, the bigger issue is a lack of border security.  The vast majority of illegals who cross are Mexicans but there are some folks other than Mexicans who also cross whose intentions are not just working in America but maybe harming America.  Border security is a high priority for most countries in the world.  The penalty for illegally entering many countries is incarceration for lengthy terms. 

On our southern border we don’t send you to jail when you enter America illegally, we send you to college.

In my view the Comprehensive part of Immigration Reform is the dilemma of ten million illegal aliens who have lived here so long their kids are graduating from high school and college and who are now finding themselves in the spotlight.  What do we do with all the folks who have been well behaved illegal aliens who have become contributing members of our society? 

Once again it’s my view that people who enter this country illegally can never become citizens.  We might grant Mexicans resident alien status that allows them to live and work here but if they didn’t enter through proper channels they can never apply for citizenship.  How we might deal with foreigners of other origin is up for discussion.

And because these illegal aliens came into the country illegally they are classified similar to convicted felons in that they are never granted the right to vote or own a fire arm.  I don’t insist on calling them felons but the restrictions we put on felons should apply.

Amnesty is not an option for me.  There must be consequences for jumping the line and breaking the law which might also include a monetary penalty.

The bottom line for me is we don’t have to kick all of them out of the country but we do need to identify them and give them proper identification that includes fingerprints and or DNA so if they mysteriously disappear into the country there will be some way to identify them when they do turn up. The argument that aliens of any kind should not be required to have proper documentation on their person at all times when they are in public doesn’t work for me.  The feel good folks would have us believe that it’s inhumane to characterize illegal aliens as criminals but we don’t hesitate if the person breaks into our house or damages our property. What is breaking into our country?

If all they want to do is work and raise their families in America and give their kids the chance to realize the American Dream the restrictions I outline here shouldn’t be a problem.  The alternative is to uproot their families and go back to Mexico where the kids might be treated like foreigners.

The opportunity to become a US citizen should be a privilege reserved for aliens who entered through proper channels.

June 15, 2012

Is Middle Class Second Class?

by Steve Dana

One of the big political arguments swirling again this season is “how do we rebuild and restore the Middle Class?”

The next question for me is “what income range is considered Middle Class?”

I’m no economist but I think of Boeing Machinists as being Middle Class type folks.  I would guess their incomes range from $40,000 per year to $80,000 per year or roughly $20/hour to $40/hour.  And even though they are highly trained, many of them are not college educated.

So for the sake of my argument that is how I will define Middle Class. 

Once you establish the income range you just look around for the jobs that pay that kind of money.  Or maybe you look for the jobs that used to pay that kind of money and follow that with where did those jobs go?

As a resident of the Puget Sound region in Washington State Boeing is a big part of our economy.  For many years it was the only game in town.  Fortunately we lucked out when Bill Gates and Paul Allen decided to keep Microsoft local, Howard Schultz opened Starbucks in Seattle; and again when Jeff Bezos headquartered Amazon in town.

So we have four very different businesses that produce and incredible amount of wealth in the region with very different operating models.  One that manufactures a product, one that produces a digital product and two that provide services.

Without a college degree in computer science or business management, most remaining Microsoft employees struggle to make it into the middle class.  The bulk of the Amazon and Starbucks employees also just bump the bottom of the range at best.

What is missing is the manufacturing jobs like Boeing offers.  And what we know about Boeing is that they are also looking to reduce the cost of their workforce as well by opening factories in locations where the cost of labor is lower.

Is anyone surprised that I have an opinion about this dilemma?

Since our government bought into the “world economy” argument the American manufacturing sector has been withering and along with it the Middle Class.

The jobs most often associated with the Middle Class in the past were family wage factory jobs that have been shipped over seas to build up the economies of our trading partners.  The adoption of the North American Free Trade Agreement NAFTA signaled the exit of many manufacturing jobs to Mexico.  American participation in World Trade organizations encourage relocation of previously American jobs to third world economies to bolster those countries as trading partners but at the expense of American manufacturing jobs.

In most cases the jobs that go overseas are jobs that require training but not significant education.

The jobs that remain here are the ones that are tied to raw materials or require a highly trained and educated workforce; and even those raw materials jobs are at risk as the government is regulating many of them out of existence.

By today’s standards the Middle Class jobs are the public sector employers like governments and school systems.  Locally we have city and county governments, we have Policemen, Fire Fighters and Public Works employees and at the state and federal levels we have the Department of Transportation, Department of Energy, Department of Ecology, Department of Education…..yadayadayada.  Is it any wonder that the Middle Class has changed so dramatically?

The Middle Class swapped private sector jobs that produced the highest standard of living and best quality products in the world for public sector jobs that suck up the resources of society and produce nothing but a bill.

The Middle Class today is the Bureaucrat Class with the Service Sector groveling for a handout.

The cost of government skyrocketed at every level while the private sector industries our country was famous for have fled.  Even a country boy like me could see this as it was happening but the rationale for world trade was too deep for me to grasp.

Whether it’s big business or big government, both political parties still champion the world trade argument even though it sells American workers down the river.  There is no safe haven with either the Democrats or Republicans.

If you really want to know what happened to the Middle Class look at China where economic development is producing record numbers of millionaires even in this depressed economy.  Our Middle Class moved overseas!

If our goal is to return America to the prosperity we enjoyed for many years after WW2 we have to examine what our government did to cause the exodus and systematically reverse it.  We will also have to analyze the political ramifications to our trading partners and make value judgments.  Bringing the private sector Middle Class back to America will have international implications.

June 1, 2012

Insurance is the Devil of our Society!

by Steve Dana

I’ve come to the conclusion that INSURANCE is the root of most evil in our country today.  In my view, INSURANCE and LAWYERS together are to blame for most of what’s wrong. 

Think about how many insurance pools affect your life.  At home you have your home owner’s liability policy, your fire insurance policy and your auto policies covering your liability and your casualty loss.  If you have a mortgage, you probably have mortgage insurance.  If you are prudent you may have life insurance.

At work you are covered by Worker’s Compensation through Department of Labor and Industries and Employment Security (Unemployment Insurance) both paid mostly by your employer.

Increasingly, Health Care Insurance has come to dominate our lives.  Whether you pay for it individually or your employer pays for it, Health Care Insurance is becoming the most insidious form of insurance in our lives.

For a long time the discussion was focused on the “health care” part of the deal.  The thought was that the cost of care was driven by health care providers.  Then when we looked closer we saw that insurance companies were entrenched in the businesses of those providers it wasn’t about the quality of the care, it was only about what the insurance company would pay. 

Who hasn’t heard about Mal-Practice and Business Liability insurance for the doctors, the clinics and the hospitals?  It isn’t just the medical related businesses that are affected though; nearly every profession is impacted by Insurance policies.

The Lawyers compound the need for insurance because if someone fails to perform as they agreed in their insurance policy, an ambulance chaser, personal injury, mal-practice attorney will sue you and the insurance company for the failure.  Threatened with the loss of your stuff, you toe the line.

Insurance companies have been changing our behavior for many years.  Life insurance companies did it with smoking.  Auto insurance companies did it with seat belts and motor cycle helmets. 

If you engage in behavior they decide is “risky” your rates go up or your policy is cancelled.  And that is the central issue of this whole piece.

I guess the other component is not canceling your policy but reducing your benefits; which is happening everywhere we look.

This week, New York Mayor Michael Bloomberg suggested that sugared soft drinks larger than 16 ounces should be outlawed in New York City, citing the cost of health care paid by our health insurance carriers as the justification.  Obese people who are covered get subsidized health care because they are not as healthy as skinnier folks.  (Think about how far an idiot could extend that logic.)

The mayor focuses on how your personal bad choices affect insurance premiums paid by everyone.  Last time it was trans fats in the cooking oil used by restaurants.  Can you see how INSURANCE is becoming the dominant factor in our lives?

Insurance is the binding force that the government uses to change your behavior.  By making coverage mandatory you increase the size of the money pool supposedly making the unit cost less while giving the insurance company the leverage over the service providers to reduce their reimbursement rate.

Certainly the Supreme Court’s pending decision on Obamacare will be the deciding factor in whether the government and the insurance companies can require that you buy their insurance and accept their prescribed level of care without competition in the market.  It will also determine whether a doctor can set the price for his services or whether the insurance companies will have a strangle-hold on all the actual medical providers.

Don’t get me started about Medicare.  We supposedly paid into a pool that should have compounded and grown into a huge fund that would pay for our medical costs when we retired.  Unfortunately the government raided the fund and left it with a bunch of IOU’s so the actual cost of care today has to be paid out of current revenue.

Insurance companies will be the downfall of our society if the government requires that we all be covered for all perils.

Lawyers will be the enforcers since they will either sue you or threaten to sue you for whatever meager possessions the government allows you to have.

No doubt I would be in favor of “tort reform” limiting the dollar amount that could be awarded in a mal-practice or liability trial and providing that the plaintiff be held financially liable for the cost incurred by the defendant if the defendant is found to be not guilty.

Do I sound a little edgy?  Good!