Tag Archives: Liberal

Money as a Signal

I run another blog that is basically a conversation between a real good friend of mine.  We end up talking lot’s of politics.  And my latest entry kinda sums up on how I feel about money.

I thought it would be good to double post that entry here today.

The Cost of Money

I Wish We Had a Cool Governor

Now, don’t get me wrong.  I don’t have the same feel for the Good Gov’na Purdue that I have for Obama; not even close.  But how nice it is to listen to some of the best conservatives in the country talk about the stimulus package:?

http://www.wral.com/

Louisiana Gov. Bobby Jindal, a likely 2012 presidential contender, has said he would reject a portion of the money aimed at expanding state unemployment insurance.

Notice the level of detail intimated by Jindal.  He is not rejecting all of the money, just that money that speaks to unemployment insurance.

Gov. Haley Barbour, R-Miss., said he was considering a similar move. Taking the unemployment dollars, he said, would force his state to eventually raise taxes when the stimulus money runs out, putting in place what he called an unfair tax on employers.

“There is some (money) we will not take in Mississippi. … We want more jobs. You don’t get more jobs by putting an extra tax on creating jobs,” Barbour told CNN’s “State of the Union’ on Sunday.

Again, very detailed analysis of the package.  These guys know the good from the bad; almost as if they–you know, READ the bill.

Michigan’s Democratic Gov. Jennifer Granholm said there are other states that want and need the new money: “We’ll take it. We’ll take your money.”

States with unemployment rates significantly differ- ent from that of the U.S

States with unemployment rates significantly differ- ent from that of the U.S

Guess who’s state is that highest bar, just left of center?  Yeah, that’s right.  The Great State belonging to Gov. Jennifer Granholm.  That, by the way, is not an accident.

At issue for Jindal and Barbour is a provision in the stimulus bill that could allow people ineligible for unemployment benefits to receive them anyway. That could eventually force a tax increase on employers, both governors have said.

Nice.  So even if the state doesn’t want the money, the Federal Government forces them to take it anyway.  And they have to raise taxes as a result.  How is this legal?

Some Democrats took a harder line at a press conference arranged by the Democratic Governors Association to praise Obama for his leadership on the stimulus. DGA Chairman Brian Schweitzer of Montana and Maryland Gov. Martin O’Malley dismissed GOP detractors as “fringe” Republicans eager to score political points.

“All of us are committed to working with President Obama to pull our nation’s economy out of the ditch that George W. Bush ran it into,” O’Malley said. “If some of the fringe governors don’t want to do that, they need to step aside and not stand in the way of the nation’s interests.”

Sorry, but when you complain of “fringe” Republicans and then say “pull our nation’s economy out of the ditch that George W. Bush ran it into” you lose some all credibility in my book.

The line drew a rebuke from Sanford, the Republican Governors Association chairman.

“I think in this instance I would humbly suggest that the real fringe are those that are supporting the stimulus,” Sanford said. “It is not at all in keeping with the principles that made this country great, not at all in keeping with economic reality, not in keeping with a stable dollar and not in keeping with the sentiments of most of this country.

Finally, Republicans acting like Republicans.

The Two Best Laughs of the Day

And both are right here:

This has to be the best URL ever!

www.financialstability.gov

LOL.  Serious.  LOL.

I mean, really.  If someone sent that to me in email, I would think it was a hoax.  But the URL is only the second best laugh of the day.  The top laugh of the day is the page display when you actually go looking for financialstability.gov:

financialstability

What 400 Bucks Is Gonna Do

Recently I was part of a small conversation regarding a portion of the tax cuts in the new Stimulus Package.  The subject that got us all going was, well, the headline you see at the top of this very post; what 400 bucks is gonna do….  Now, to be clear, I think that what we were talking about was the portion of the tax cuts that President Obama refers to as tax cuts to 95% of working men and women; $500 for an individual, a $1000 for a family.  At least that’s what I think the reference is, though, to be fair, I’m not sure.  For example, I don’t know where 400 came from, as I mentioned, I though the Obama tax cut was $500…anyway, I digress.  The point is, we had a good conversation.

Here is my case.

The Federal government levies taxes on individuals in the form of individual income tax.  As far as I know, there are no other taxes on individuals that the Feds have claim to.  Sales tax is a state tax, state income tax is, well, levied by the state.  Vehicle, property, city and county taxes…all non-Federal.  FICA and Medicare, not taxes.  These are with holdings that fund programs or specific funds.  They can not be used for other purposes, and if those programs or funds went away, so too, would the withholding.  FICA , after all, is is really just shorthand for Federal Insurance Contribution Act.  In this specific case, Social Security is really just an insurance program.  Anyway, point is–not a tax.

That would mean, for the Federal government to say that it is giving a tax cut to 95% of working Americans, he would have to reduce the rate of the tax.  For example, if an individual is being taxed at 28%, to realize a tax cut, she would have to see her rate go down, say..to 27% or 20%. That’s a tax cut.  What is not a tax cut is when an individual who currently pays no amount of money to the Federal government gets a check from Uncle Sam.  It is something.  And if it’s a grand, it’s not insignificant.  But what it’s not, is a tax cut.

And this is why it’s important.  It’s important because it has clear and critical ramifications, when dealing with a struggling economy.  It is NOT important because of the partisan bickering going on.  We have all heard the arguments going back to the election from the Democrats that Obama was offering a tax cut and The Republicans claiming it was just income redistribution.  That’s not why it’s important.  Where it really really matters is in how the recipients SEE, or perceive, the additional money.

You see, when I am chugging along in my normal economic way, I do just that–chug along.  I buy near the same kinds of groceries at near the same amounts.  I drive about the same kind of car and get it washed at about the as often as I always do.  I go out about the same number of nights and have about the same number of beers.  But now, let’s say that something changes.  Let’s say that I get a check back from my insurance company; my rates went down and they have overcharged me for two consecutive 6-month periods.  I get $500.  How do I spend that money?  It has been shown that the typical person spends it in one of two ways – They pay down debt OR they go on a 1 time splurge shopping spree.  So, VISA gets it or Best Buy gets it.  And then whamo, right back to the normal way of spending money.  Point is, there is no sustainable economic jolt in either paying off VISA or buying that flat screen TV.

Now, let’s say that instead of a windfall [the insurance overcharge check], I get a raise.  This presents me with a new way of looking at the money coming into me.  I view this a sustainable income, an item that I can budget for and count on.  I know it’s going to be there next paycheck and the paycheck after it.  This affects my spending in a much different way.  It sustains it.  I am more willing to up what I buy and/or how often I buy it.  I may not ration myself to a 6-pak.  Perhaps I can up how often I get a new car, or new jeans or new whatever.  Further, because it is not presented to me in a lump sum significant amount, the chances that I sink it into debt reduction is less; I actually spend it.  In this case, the economy is better off.

Now, for the whammy.  If, instead of giving me, a worker bee who concerns himself with just me and mine, a $500 bump, what if 20 people like me DIDN’T get the money but it went to a small business owner who was just thhhhiiiiiiisss close to obtaining the money to hire one more guy.  Or buy that new processor in his assembly line.  What if that 10k went to someone who GREW the money, who took it and turned it into 15k, or 20k AND gave someone a job because of it?

It is because of these reasons that fiscal conservatives don’t like the tax cut language in the stimulus package.  Not because Obama thought of it, or because Pelosi pushed it.  Or because no republican voted for it.  It’s because it’s moving money around in a way that does not grow said money, and it denies the recipient the critical perception that it’s sustained.  And further more, if you want to grow the economy, it’s not putting it into the hands of people who grow money.

Disheartening Change of Ideals

So, I was talking to a friend yesterday regarding the new administration; Obama’s plans and goals.  Now, in the past, this friend of mine has been consistently further left than me, but only barely.  However, in several cases, namely that of the ability of the government to take money from us, he was slightly to the right.  Yesterday he shared with me that, yes, in fact, it is the “right thing to do” when we were discussing the transfer of money from those that have to those that simply have less.  When I prodded him further, he claimed “It’s the right thing to do.”

I couldn’t talk.

I shook my head, looked down for a second and then lifted my eyes back up to meet his, hoping, really really hoping that I would see the beginnings of a smile.  See the familiar wrinkle in the eyes that would signal the beginning of the joke.

Nothing.  He looked at me dead in the eye.  And just blinked.

As a friend, of course, I couldn’t lambaste him, but I did gently bring up old discussions, debates that we shared over coffee, bourbon and beer.  He admitted that, in fact, he does remember saying and feeling those things and yes, doesn’t deny, that he has now changed his mind.

I got the feeling as a walked away, that he may be on the fence.  That somehow,even he himself knew that he wasn’t sure if he was saying these things because they were the result of bedrock principles well thought out or, if, perhaps, it’s because he somehow wanted to feel that way.  That somehow, society has lost it’s way and we have forgotten those less fortunate.  And in so doing, we have perhaps ceded our rights, certain rights, to the government in regard to the tending of the poor.

Of course, before I left I recounted how this country’s poor are not really so poor, as a whole.  That in fact, not only are the bottom 25% much much better off than even 30 years ago, they are living in conditions that would be considered very well off with respect to the rest of the world.  I insisted that I find it hard to classify someone as poor when they had a satellite TV and PlayStation, but couldn’t afford health care for their kids.

I almost saw a tear as he nodded in agreement, but then shrugged it off, as if to say “I can’t explain it, but I am at peace with my newfound place.”

At least for now.

So the question is this.  How did the paradigm get changed?  How did we lose what was once a rock solid foundation of right and wrong [or at least right and not right]?  And then, how do we communicate that in such a way so as to win the hearts and minds of those lost converts, and, perhaps, even win back some from the other side to boot?

Obama – Succeed or Fail?

I have been asked this question so many times my ears are bleeding.

Are you hoping that Obama fails—or succeeds?

Blink.  Blink.

Serious.  Early on, all I could do was muster a blank look at the person in front of me and just shake my head.  I had no answer.  The question just stunk of…well, of stink.  Without knowing why, I would just kinda shrug, grimace and say “What?”

No, however, I know from where I came.  I mean, it took some days and some thinking, but really, stop for just a second, and look at the question.  Repeat it.  Run it through your mind and then, just say it, really, say it, out loud.

Are you hoping that Obama succeeds?

Maybe I’m slow, maybe you’re quicker.  Whatever, in time, it came to me.  The whole premise of the question is flawed.  Do I hope that Obama succeeds?  Do I hope that Obama fails?  What the hell?

Now, of course, I know the problem with the question; and my answer.  This thing about succeeding or failing has nothing to do with The Chairman.  The fact that a Dem or a Repub is in the White House really isn’t the issue.  The fact is this, I want ME, ME ME ME ME to succeed.  I want to be able to strike out and make a life for me and my family.  In the process, I would like it if you could also have a shot at the same life.  Cause in the end, we are al inter-connected.  And so yeah, if I am to succeed, then you kinda have’ta too.

In short, I hope that America succeeds.  And to that end, in that I am convinced that The Chairman’s ways of looking at life, at government, at right and wrong, fair and unfair, is flawed.  And so yeah, I hope that America continues to move forward, to lead the way and shine forth as an example of all that’s good in the world.

I just don’t think that Obama’s method is going to do that for us.

And so it is that I have to answer:

I am for America succeeding, and so it is that Obama’s plan must be fought at every opportunity.  For the good of America.

I Can’t Put My Finger On It

I am a big big believer in people helping people.  In a community coming together to help their neighbors in need.  In is through thiese efforts that our society is to help each other; not through taxation and government programs.

And so it is that I really admire and respect the work that Habitat for Humanity does.  They gather volunteers from the community, obtain donated money and build homes for people that are unable to afford them in the conventional manner.  These homes are provided in the form of interest free loans.  Further, because the materials and time are often donated, the actual cost of the home is reduced even further; sometimes half.

However, I can’t shake the feeling that organizations like these are just beside themselves at the prospect of an Obama Presidency.  And so it is that I have to chuckle at this:

Paragraphs rendered

To qualify for a Habitat home, a family of two must earn between $28,000 and $30,000 annually. For a family of three, earnings must be between $31,000 and $33,000. A family of five would have to earn between $35,000 and $37,000.

“These people clearly demonstrate a need for having a house built for them,” Hoke County Habitat board member Daphne Graham-Dudley said. “They do not meet the income levels.”

Habitat offers interest-free loans to the homeowners, who in turn make payments back to Habitat. The group relies on homeowners making payments so they can have funds to build other homes.

“Those people have to pay those loans back, because it won’t work if they don’t,” Hoke County Habitat President Bill Evans said.

Universal Health Care vs. Government Offered Health Insurance

I have been sitting on this one for awhile now.  It’s a tough one.  Something that no one wants to see and few have the answers to.  From the right, we all know the responses, but do we really know the reasons?  And, to be honest, do we really believe what it is we are saying?  I am talking about health care.  And, specifically, the availability, or lack thereof, of that care.

I think that when you ask the right about this topic, they picture people who refuse to work, refuse to better themselves or refuse to create for themselves a situation where they can obtain basic medical care.  Or, at the very least, purchase catastrophic health insurance.

Similarly, if you ask the left about health care or medical care they are envisioning individuals suffering due to tragic life threatening illnesses.  Situations where the individual has little or no control and the result is complete and utter financial ruin.

In short, I think that we are talking about two different things.  On one hand, we are discussing health or medical care as an industry; something that is in the macro sense.  On the other, we are discussing that same care on a deeply individual and tragic level.  And so, lost in conversation, the left and the right have no hope of compromise, no hope of a shared or common understanding.  How could they?  They’re not even talking about the same things.

And so it is when I discuss health care.  Coming from the right, I shudder at the thought of Nationalized Health Care.  Or Socialized Medicine.  Or Single Payer Insurance.  Or anything that is called whatever that means everyone is able to seek any medical care and not receive a bill.  And yet, these same opponents of mine will lash out at me as in separate conversations as being part of the Religious Right.  I don’t get it.  At the same time I am someone who is deeply religious and yet I am able to turn a blind [and greedy] eye to the grandmother suffering in pain, struggling to stay alive and knowing that she is going to bankrupt her family?  I just shake my head.

I don’t understand how anyone could possibly hear such a story and walk away untouched, unmoved; certainly not me.  But again, we are reading from two different scripts here.

And so it is that I continue to support what I know to be true.  Medical Care is a service.  And as such, it creates a certain demand or need or want.  And there is more of that want that there is supply of the service.  And so, as we all know, that service, that medical care, has to be rationed in some way.  However you want to close your eyes and sing lalalalalalala and not believe it, there is simply NOT enough supply to satiate all of thedemand.

There are many ways to solve this problem.  I’m not going to list them here.  But my favorite method to resolving this delta in supply and demand is …… price.  It is by price that we SELF ration the demand and come to a equilibrium where the supply is in harmony with the demand. [Cue Disney Hummingbirds].

However, I also am a big BIG believer in Role of Government.  That is to say that at each level of government, there are certain and appropriate roles and expectations.  For example, I do NOT thin that it is the role of the Federal Government to mandate or assume management of Health Insurance.  However, as we get more and more local, in fact, if we even just jump from Federal to State, we find that the role or expectation of the Government changes.  I think that this is true for the case involving abortion and I think that it is tru here; for Health Care.

And so it is that I find this development, not an attack on Conservatism, but as example [could it be better?  Sure.] of what can happen when members of a community State gather together, discuss what is important to them as people, and vote that they want to offer this type of service where they live.  That they want to offer care to those that are less fortunate.  This, THIS I believe is the role of the State.  Not, however, of the Nation.

Moral Exemption

Seven states have sued the Federal Government because of an expansion of a rule that allows medical professionals to not perform or assist in an abortion.

Now, my position on abortion is a bit complicated, but can be summed up in this way:

I am pro-choice.

With that said, I absolutely love the irony in the above lawsuit.  On the one hand, we have a group of people that acknowledge that the issue of abortion is an intesely personal and and equally difficult.  But they firmly feel that the issue should be one of choice, choice for the mother.  And then, when that choice is extended to the person actually doing the procedure, they are all of a sudden against choice.

I love the left!