Polling The Natives

I’m at the beach this week. And, having taken vacations where we stay at a condo or a townhouse or a room with a kitchen before, we are working really hard to keep it “all in the family” by eating meals that we have cooked together.  Tonight was steaks on the grill.

In the community that we are staying, gas grills are prohibited.  In fact, charcoal grills are the only type allowed and even they are restricted to the “grill zone”.  That is, a very pleasant little area with 3-4 grills complete with seats, and a deck and plenty of room for co-grillers to meet and greet.

Tonight was a full house.

Three of us dad’s were grilling tonight and we began with the usual introductions.  Each of us was recently arrived and as such, we felt compelled to entertain conversation – we being neighbors for the next week or so.  As always in the “man way”, we began to introduce ourselves through our work, or career.

One guy ran a company that manufactured ball caps.  The other ran a boutique wine and cheese shop.  Me, I just work for the man.

We talked about the rain, the weather, women and kids.  We laughed over beers and burnt chicken.  We swapped stories and matches.  All nonsense talk really, just fillin’ time the way men do until they realize that the end is apparent.  That time in the conversation when we can reasonably claim we have to leave and still save face.  When that time comes, the conversation turns serious.

We all three began to gravitate to the economy and “the way things are”.  Now mind you, I have no idea these men’s name.  I have never seen ’em before in life and likely won’t even see ’em again here.  But we all three agreed that:

  1. A reasonable society should help each other out.
  2. That help should not create dependence.
  3. We have long ago crossed that line.
  4. Where unemployment benefits are concerned, we would be better off deciding how many weeks is enough and just lump sum the check.

I swear to gawd this is true.  I find more like minded people wherever I go.  This nation isn’t broke.  This nation is being managed by the morally inept.  By the intellectually inept.  By the spiritually inept.  Every single person I know and talk to understands that what our government is doing is buying votes.

The rest is just chit chat.

As I write this it occurred to me that my specific audience was perhaps biased; two business owners and a massive free market corporate lackey.

Then it occurred to me that perhaps there is something to be said about the fact that these individuals find themselves gathered in a rental community on the beaches of North Carolina for a week.  Maybe what successful people think matters.  Maybe when Michael Jordan advices about basketball people should listen.

Maybe.

That Whole Squeaky Wheel Thing?

As a general rule I try to listen to what people say with a degree of open-mindedness.  IN my line of work, I hear all kids of reasons for things gone wrong and even more for why they can’t get fixed.

All day, every day.

And, in truth, many of those folks are right.  Or mostly right.  Or maybe just kinda right.

Every once in awhile I find someone who is NEVER right and I disregard what they say out of hand.  The Reverend Barber and the North Carolina NAACP are that guy.

RALEIGH, N.C. — North Carolina’s NAACP chapter says it will fight the General Assembly’s plan to redraw legislative and congressional boundaries in court and within the Obama administration.

The Rev. William Barber said Monday the group is ramping up to challenge the maps drawn by the first Republican-led Legislature since the 1870s.

The first map drawn by Republicans since the 1870s.  Can you imagine how gerrymandered that map is today; only in favor of the Democrats?  Can you imagine a scenario where that map ISN’T gonna look different than the Democrat’s map?  One that has had the advantage of being refined over 141 years?

It’s become so bad that I’m not convinced proper legislation has been passed unless and until Reverend Barber complains.  Then I KNOW it’s right!

Stagnant Wages and Employee Compensation

Do you feel that you are fairly compensated at work?  That is, are you getting from the company a fair return for what you give?  Maybe, maybe not.  I betcha that in this economy more people feel that they are NOT earning what they feel they are worth.

Is that true, though, over time?  Has out income stopped keeping pace with the times?  According to some, it would seem so:

It would seem that since 1970 or so, wages in America have been flat.  In fact, for much of the time since 1970, we have seen wages below the 1970 level.  And this fact is to be used against us to demonstrate that somehow the working class, the middle class, has it worse of now than in, well, than in 1969 apparently.

But is that the whole story?

I don’t think so:

…the level of productivity doubled in the U.S. non-farm business sector between 1970 and 2006. Wages, or more accurately total compensation per hour, increased at approximately the same annual rate during that period — if nominal compensation is adjusted for inflation in the same way as the nominal output measure that is used to calculate productivity.

Total employee compensation was 66 percent of national income in 1970 and 64 percent in 2006. This measure of the labor compensation share has been remarkably stable since the 1970s. It rose from an average of 62 percent in the 1960s to 66 percent in the 1970s and 1980s, and then declined to 65 percent in the 1990s where it has remained from 2000 until the end of 2007.

From the actual report:

Another useful way to examine changes in the compensation share is to
focus on the nonfinancial corporate sector (as presented in table B14 of the 2007 Economic Report of the President.) This eliminates some of the very highly compensated individuals in the financial sector. It also avoids the problems raised by separating capital and labor income of sole proprietors . Comparing the compensation paid by the nonfinancial corporations to the net value added of the nonfinancial corporations reinforces the conclusions based on the larger scope of industries. In 1970 compensation was 74 percent of the value added of the nonfinancial corporate sector. In 2006, it was 73 percent. The decade averages rose from 70 percent in the 1960s and were very stable after that: 73 percent in the 1970s and 1990s, 74 percent in the 1980s and 75 percent since 2000.

What’s this all mean?

It means that there are other ways to compensate individual besides “wages”.  For proof of this, listen to the screeching of the Unionista as he complains that having to pay for his own health insurance (actually, just 12% of it) is a “pay cut”.  Of course, that implies that the benefit was first a “pay”, or what we in the biz call a “compensation”.  Similar to health benefits are paid days off, training, 401k and sick days.  To name a few.

I “get” a pager.

So, what does that graph look like if you graph compensation rather than just cash?

That there is total hourly compensation since 1950.  If you notice, right at 1970, we have a massive arc upwards.  Contrary to what you hear, the worker is better off than he was.

Clarification

I’ve been told that I’m unclear in saying the things I wanna say.

Given that critique:

I’m at the beach.  Posting will be slow.

If You’re Forced To Defend Your Positions

I’m the first to tell ya that I’m new to this whole gig.  I’m 42 and for the first 38 years of my life I couldn’t care less about politics and politicians.*  Not until I realized we were going to see a double primary did I really begin to pay attention.  And even then, it was cursory.

As they began to heat up, I can remember saying to colleagues of mine at the office that if Romeny didn’t win the Republican nomination, I could support this guy Obama.  Something new I told myself.  Then I listen to what he was saying.

And I’ve been hooked.

I love being challenged by Mo And Scott.  The boys over at Poison Your Mind know how to bring it.  I get support from Sean and Alan and Vern.

But if I’ve learned one thing, it’s not so much HOW to defend your positions; it’s WHERE:

If I’m slow to respond/blog, it’s not that I don’t love you.  It’s that I love me more.

* Though, to be fair, I remember crying as a very young child watching Nixon resign.  Clearly I had no idea what was going on, but I could feel the sorrow.

AND

I wrote a letter to Ford after he was defeated by Carter.  The White House sent me a “Guide to the White House” catalog post marked on Carter’s inauguration.

Without Comment

California HIgh Speed Rail Costs Lots Of Money

I know this is gonna shock a TON of people.

Environmental reports released Tuesday show the first segment of the line in the Central Valley will cost between $10 billion and $13.9 billion, far more than the 2009 estimate of $7.1 billion.

I know I’m surprised.  I had expected California to come in under budget; ’cause all such projects do, really, come in under budget.

The thing about the Liberati when it comes to central planning projects like this is that they never consider the cost.  Would it be cool if I could take a train that ran on the coffee grounds I brew each morning?  Ride a train that took me to a station a meager few blocks from my office?

Sure.

Would it still be cool if the state had to pay $8,542 per round-trip ticket?

Still think it’s a good idea?

Me either.

Music, Sweet Music – US Postal Service To Lay Off 120,000

It would seem that people only care about monopolies when they are in the hands of anyone but the government.  But, when in those trusted hands of Uncle Sam, it’s A-OK for an organization to have a legal strangle hold on a market.

Enter the United States Postal Service.

For years this organization has been losing money by the truck load.  The truck load I tell you.  And the whole time they’re losing this money there are corporations willing and able to take the job from them.  FedEx and UPS would be chomping at the bit to be able to have a shot at the commercial mail that the USPS handles right now.

But the government won’t let ’em.

Continue reading

This Guy Is A Clown

He’s done:

“Unless things change and Obama can run on accomplishments, he will have to kill Romney,” said a prominent Democratic strategist aligned with the White House.

Kinder and gentler nation.

This is what a Liberati means when they say we have to control discourse.  They mean everyone except them.

I’m not so much shocked at the irony, I’m shocked anyone is shocked.

Bank Regulations: Incentives

I am fascinated by the study of the use of scare resources which have alternative uses.  Further, I’m frustrated by the fact that I shrugged off Economics while I was going to college.  Instead, I focused on engineering and math, physics and chemistry.  In retrospect, how boring and useless ;-).

But the idea that all things have alternate uses is fascinating.  And critical.  Combine this with the fact that all people will pursue their individual self-interests and you will find the decisions people make to be interesting as well.

And it’s within this light that I judge and critique government policy.

Continue reading