Archive for ‘Political commentary’

February 27, 2011

Battle for America!

by Steve Dana

Protesters in Madison, Wisconsin and everywhere across the land including Washington State have been characterized by the press as being either Union Activists or Tea Party Activists.  The folks in the press have decided that there are two sides in the discussion; one being the labor unions, the other being the Tea Party.  Maybe it’s a mistake to label the sides that way.  Are there really only those two choices?

I think it’s clear that since the focal point of this whole discussion is Collective Bargaining impacts to public budgets, the unions would, by necessity, be there protesting since their very existence might be at stake.

The curious part for me is the assumption that anyone who takes a position supporting the legislature and the governor of Wisconsin is a Tea Party Activist rather than a Republican or a concerned citizen from Wisconsin.  I can’t say that the Republican Party has done a lot to attract fiscally conservative Americans so not giving credit to Republicans and Independents for electing the current government in Wisconsin is not surprising. 

There is no doubt that the Republican Party has been the beneficiary of Tea Party efforts, but that is not the case because these folks have suddenly seen the error of their ways.  The Tea Party is not an organized political party, but they are previously silent concerned citizens that have banded together to fight for government that is faithful to the Constitution and the Bill of Rights as they were written rather than the way they are mistakenly interpreted today.  It just happens that the Republican Party better represents the values of Middle America better than the Democrats.  The Republicans should not misread this support as an endorsement of ultra Conservative causes.

For decades our country has been the victim of a tug of war between left wing interests and right wing interests.  Average Americans have swung back and forth between the two without much involvement because they enjoyed steady improvement to their quality of life which offered them a lot of opportunities to enjoy prosperity.  It was because of the steady improvement that they felt comfortable leaving government to someone else. 

Then suddenly, steady improvement stalled and began to deteriorate which gave rise to the TEA Party movement.

Make no mistake; there have been some in the political arena who have been raising the alarm for many years so the problem didn’t just materialize when Barack Obama was elected President.  It could be that it took the election of the most liberal and radical president in our history to demonstrate how close our country is to being rendered a second class power.

Standing on the sidelines is no longer an option for average Americans.  If you care about your country, get involved.

The struggle taking place in Wisconsin is the beginning of a much larger battle that must be fought in every government agency from city councils to the federal government.  The struggle is not between Republicans and Democrats; it is between taxpayers and government labor unions. 

For many years labor unions have funded campaigns of candidates that when elected negotiated their contracts.  As a result, those elected officials approved union contracts for pay, benefits and pensions that would obligate taxpayers to pay without the taxpayers having an advocate at the table.

The Tea Party is Middle America and they are fed up with special interest government on both sides of the aisle.  They are fed up with political wrangling and partisan BS. 

Middle America has formed a partnership with the Republican Party for now to take a shot at restoring our country to the greatness we all know it deserves.  Failure of this effort will have dire consequences.

February 24, 2011

Who are the Job Creators?

by Steve Dana

The President was on the West coast a week or so ago to huddle with a group of business executives primarily representing the tech sector; folks like Steve Jobs and Mark Zuckerberg to talk about creating jobs.  After that gathering he came north to Portland Oregon to the unveiling of a new product line at Intel.

When Presidents go anywhere, they are almost always expected to have public remarks and the trip to Intel was no different.  I really wasn’t listening to the substance of Obama’s remarks because he always talks about job creation but he never delivers.

The reason for him being there was applicable because Intel is a great example of a private sector job creator.  The competition in the micro-chip industry keeps the players working their tails off to create products that are in demand in the market place.  This is a company that understands competition. When the existing products become stale or the competition begins to close the gap on market share there is a huge push for next generation products that raise the bar for everyone else in that industry.

So what is it that the President doesn’t understand about the difference between a government subsidy to a company to produce a product that has no demand in the market place and a company like Intel?

The whole tech sector is a product of market driven innovation offering the guy with the best product a chance to get filthy rich.  That is the American Dream.

The idea that by putting subsidy dollars into environmentally friendly products that nobody wants and would never pay for if their price were established by a competitive market we can create sustainable jobs is a joke.

The alternative plan for the government is to drive up the cost of producing those in-demand products so the price differential between the good stuff and the government preferred stuff favors the government preferred stuff, consumers will buy the government preferred stuff.

The government needs to get out of the business of anointing winners in a free market.  The market will do that all by itself.

Anyone who has been in business can attest that the process of bringing a product to market is a process of trial and error or listening carefully to your customers and tailoring your product to their demands. 

What the President and his economic development team is doing is similar to the old Soviet Union when the government would decide what was appropriate and only make those products.  Quality sucked and competition was “discouraged” through harassment.  Does that sound familiar?

Given a level playing field, American businesses are more than capable of creating all the jobs we need.  The biggest obstacles to job creation are government regulation and a legal system that rewards frivolous lawsuits.

We are not building electric power generating plants of any kind in this country because government regulations and environmentally related lawsuits either discourage them or prevent them outright.  Construction jobs building them would be good.  Operator jobs when they are completed would be better.

If the only consideration was the jobs created, fast tracking permitting and dismissing frivolous lawsuits would be worth the effort.  Then if you factor in the supply of energy we need to meet the demands of the market we get to be double winners.  So why wouldn’t the government work to clear these hurdles?

I wish President Obama was the only president that failed to clear hurdles but he isn’t.  The effort to create jobs will require the coordinated efforts of both the executive branch and the legislative branch over a sustained period of time.

The government will never be a job creator, but it is a great job killer.

February 23, 2011

Government Ponzi Robs Peter to Pay Paul!

by Steve Dana

It’s unfortunate that what we see happening in Wisconsin may well be the beginning of a national movement.  The fight in Wisconsin is similar to fights that will be taking place in state legislatures across the land.  On the surface it is about balancing the current budgets, but the reality is it’s about the power of public employee labor unions to cripple local governments.  Republican elected officials are talking about the impossible task of  funding employee benefits and pension plans for the long term that must be paid with current general fund dollars.  Today we are finding that we made promises previously we can’t keep.  And there’s the rub!

The current recession and economic crisis in our country is exposing the weakness of a system very much a Ponzi Scheme.  We pay yesterday’s promises with today’s dollars knowing that eventually the payouts will be greater than the income and the system will collapse.

The Democrats want to talk about the cost as a percentage of unknown growth in the economy.  If you can be sure that there will be inflated revenue streams down the road then they believe it’s worth the risk.

So what strategy should we employ when every budget scenario we try produces the same general result? 

Elected Officials today can’t make promises to employees that create unfunded liabilities to successors down the road.  And that is the solution if there is one.  If benefit and pension obligations for the future are set aside today from current revenues then there is a better chance that money will actually be available when retiring employees are ready.

The down side is that there is no money left for programs and projects that benefit the public today.  The money is all tied up in employee overhead.

Elected officials in every jurisdiction in our country should be huddling with their managers and finance people to assess their long term commitments and their ability to fund them.  Every time a labor contract comes up for negotiation unfunded obligations have to be considered.

If voters and taxpayers express their willingness to have their taxes raised year after year by electing council members, commissioners and legislators who solve the problem by tapping taxpayers then there should be no complaints.  If my councilmember comes out in a hearing and tells the public that we need to raise taxes because we agreed to benefits and pensions we can’t afford I might think about who I elect.  So those elected officials are more likely to tell you they need to raise taxes for books, fire trucks or pothole repair.

In Wisconsin the Democratic Senators fled from the capitol to prevent a vote on an issue they are sure to lose.  They are saying that they won’t return unless the Governor agrees to talk about it and be prepared to compromise.  They are outraged that the Republicans are taking advantage of the power they won in the last election.

Do we need to be reminded of that day not too long ago when President Obama turned to Senator John McCain and said quite pointedly “There are consequences of elections.  We won!”

Who could argue that there weren’t consequences of the 2008 elections any more than anyone could argue that after the 2010 elections there might also be consequences?

I don’t remember too much compromising in either house of the Congress when the Health Care Reform Act was approved without any hearings.  I don’t even remember too much outcry from the media when Speaker Pelosi stood there and told us that we needed to approve it before we found out what was in it.

I am sure that teachers, firefighters, police and other state workers in Wisconsin are fine people just like they are here in Washington, but I also know that the leverage they have from their collective bargaining agreements puts the taxpayers in that state and every other state in peril not commensurate with the private sector.

Voters sent a strong message in the last election cycle.  They said they wanted to reverse the course set by Democrats to increase the size and power of government to take our dwindling resources to pay for commitments out of line with trends in the private sector.

Voters were clear that if what President Obama delivered after promising a change for the better, they wanted no part of it.

Republicans were elected to return our government to a path of long term fiscal solvency.  It is our jobs as citizens to be as vigilant in holding their feet to the fire as we were in campaigning for their election.

February 23, 2011

Freedom or Security?

by Steve Dana

So much in the news that warrants comment.

For those of us who are paying attention, we are witnessing a world changing series of events in North Africa and the Middle East.  Long standing governments are being destabilized and their very existence threatened by citizens from within.  Governments that haven’t necessarily been of a style we might prefer, but in control of their countries never-the-less.

The concepts of diplomacy and statesmanship have led our country into partnerships with other countries that are in no way similar to our own, but where we do share an interest beneficial to both parties.  If we limited our treaty commitments to only countries sharing our personal views, we would have few partners so it has been and will be in the future necessary for us negotiate with kings and dictators who rule countries that do not grant their citizens even basic freedoms we cherish.

So now when those citizens challenge their unelected leaders to taste the freedom we take for granted, what should our government’s role be in the process?

Should we take sides and actively support one side or the other or should we silently watch and let the chips fall where they may and resume diplomatic relations with whoever is standing after the smoke clears?  This is a dilemma we are struggling with in steadily increasing numbers.

Having said that, how would we feel if foreign governments that embrace a system different from our own decided to destabilize our own country and promote change to America consistent with their system?

I am no student of the History of Western Civilization, but I can remember times when people with strong feelings about their own beliefs felt compelled to “share” their beliefs with others in spite of the fact that those others had beliefs of their own already.  The “sharing” of religious beliefs has been the source of much bloodshed for thousands of years.  So should we be forcing our beliefs on others?

This is an important issue because it causes us to question our motives in dealing with every foreign country in the world.

The United States of America was founded by citizens who left their home lands to find a place where they could worship as they chose; citizens who demonstrated an independence that could not tolerate undue “taxation without representation.”

For more than two hundred years, Americans have embodied the freedom we gained from our own revolution.

In spite of the fact that our country represented the ideal form of government for people who cherished their individual freedoms, our form of government has not been successfully adopted by any other country in the world.  The delicate balance of interests required for our government to survive this long has been guaranteed by our Constitution and our Bill of Rights.

But that took hard work and a firm belief in the individual freedoms that are the founding principles of our country.

So as time passed, many Americans came to the conclusion that our government’s job was to spread “our freedom” to everyone else in the world.

As painful as it might be, our country needs to step back and stop interfering with struggles taking place in other countries.  We can root for freedom, but we cannot play a role in manipulating the evolution of change.

Mubarak was a despicable dictator for thirty years because it was in the best interest of Israel for him to stay in power.  So should we support principles of freedom or support despots?  We need to decide our role so we can be consistent.  If we choose freedom over security then we need to know that.

If we determine that is it our job to “share” our view of freedom and Free the world from Kings and Dictators we better beef up our armies.