The Good and Bad

Several stories crossed my screen, so I decided to pair good and bad news items on related topics.

Good: Ford and Volkswagen are co-investing in developing electric vehicles sharing development costs.

Bad: In spite of the significant decline in bee populations, the Trump administration has approved a bee-harmlng pesticide.

Good: The American economy is now into its 121st consecutive month of growth with nine straight years of 2 million plus jobs created.

Bad: The 2019 economy has softened some from 2018 due to trade/ tariff concerns, slowing global markets, waning impact of the 2017 tax law, growing US debt, and increased uncertainty which impedes investment and it should slow even more as predicted by economists.

Good: The interest in space travel and exploration involves an increasing number of countries – Japan and China have gone to the moon, eg. That spawns more interest in science which is terrific.

Bad: With the heavy cost of space travel, why don’t countries share the burden as Ford and Volkswagen are doing above? There is a lot of dupication of effort requiring money that could be invested here on earth to address water, food and climate issues.

Good: In spite of the US announcing a withdrawal from the Paris Climate Change Accord, other countries, states, cities, investment groups, companies and innovators continue to execute ideas that are addressing the issue.

Bad: The US federal governmenf needs to do more, not less to abet these efforts. Yet, another concern is getting little notoriety – the global water crisis, which is made even worse by climate change. Another city in India of 5 million people is in dire straights as its reservoir has almost dried up.

We should celebrate the good, but address the bad. We seem to be ignoring too many signals. It is hard to move forward, if we only look in the rearview. mirror. Food, water, climate, debt are signaling needs that must be addressed.

 

 

 

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Weariness and Frankness

This independent voter is weary of people not addressing the obvious and rationalizing actions and behaviors that are less productive. Having been a member of both parties, a Democrat for about ten years of my early adult life and about twenty years as a Republican, I define myself as fiscally conservative and socially progressive. Both parties have some good ideas, while both have some bad ones.

So, let me be frank with my opinions, built off this foundation.

Democrats can defeat Trump, but they can also lose to him. Please study why George McGovern and Walter Mondale got shellacked in 1972 and 1984 and why Michael Dukakis and John Kerry lost in 1988 and 2004. It is not ironic that winning candidates Bill Clinton and Barack Obama were more moderate Democrats. Democrats cannot beat Trump without Independents and some Republicans. They could start by working now to address shoring up the ACA as they committed to do in the mid-terms and not waiting until 2021. Medicare for All is worth the discussion, but we need to address issues today, especially after the healthcare fiasco the GOP went through in 2017.

With that said, people need to look under the hood as to why more progressive Democrats have a few socialistic ideas. We should not ignore that the US economy is fettered capitalism with some socialist underpinnings. On the top end down, we have rules that govern collusion, monopolies, interlocking boards, insider trading, bankruptcy, etc. and on the bottom end up, we have socialistic programs that offer Social Security, Medicare, Medicaid, Workers Comp, and unemployment protections. Yet, the reason for their focus is America has a widened disparity between the haves and have nots. The key is to have a good debate as to how we address this disparity, not name-call ideas to win elections. Plus, this discussion must be done in the context of our huge debt and deficit problem (see below).

Seeing a dozen Oregon Republican state lawmakers leave the state to avoid voting for a Carbon Cap and Trade bill should be a clarion call. Cap and Trade used to be a GOP idea, but fossil fuel funders told them not to like it. We are facing a climate change crisis and voters must ask what candidates are going to do about climate change. Let me emphasize I left the GOP twelve years ago in large part due to its stance on climate change. Fortunately, climate change action is not waiting on head-in-the-sand politicians, but could be leveraged by more federal help.

My concerns are exacerbated as not only did the US president announce our withdrawal from the Paris Climate Change Accord, he asked the G20 this week to soften language on climate change. It should be noted this is in contrast to his businessman stance, where a few years ago Trump staff requested in writing the Scottish government give them permission to build a sea wall at one of his golf courses to hold back the rising seas due to climate change. The word you are looking for his hypocrisy. The other words are fossil-fuel funding.

An issue not being discussed is rising US debt and deficit. Both parties are to blame. Nonpartisan groups and the Simpson-Bowles Deficit Reduction Committee clearly state this problem cannot be solved with just spending cuts and tax increases – it must have both, as the math will not otherwise work. These groups also note the GOP tax cut in December, 2017 was imprudent. But, Democrat candidates speaking of tax increases to pay for new social programs are being imprudent, as well. We need tax increases and spending cuts to pay for the poor stewardship of their predecessors.

When America forgets its ideals, we become just another country. I hear we must be a nation of laws, but we are treating migrants like chattel and not following due legal process. There is a reason so many attorneys are volunteering their services to migrants. If we are concerned about illegal immigrants, punishing companies that hire them would limit the economic slavery that goes on every day. Yet, we should also recognize that these folks are doing many jobs Americans don’t want. So, a thoughtful, humane and fact-based solution is warranted rather than a political one. Both parties are to blame, but I hold this president to account for making a recurring problem much worse with his words and actions. He reneged on a bipartisan agreement sixteen months ago and the House never took up a bipartisan Senate bill passed in 2013.

Finally, if we are to be a nation of laws, we should be gravely concerned the country is being run like a mafia family. The White House incumbent is clearly making money off the presidency and favoring countries where he sees business growth for his empire. It greatly troubles me that is daughter and son-in-law are serving unvetted and unapproved roles in the White House, because the president values loyalty over competence and experience. Then, comes the lying, bullying and denigration of critics, allies, media, public servants, etc. I have long been concerned over his setting policy off his lies be it climate change, voter fraud, Russian influence, Saudi prince innocence, Iran nuclear deal, the ACA, environmental pollution, and so on.

There is so much more I could write about. We need Americans to pay attention to better news sources, question things, and push back on politicians asking what they intend to do about issues. We need Congress to remember their job of governance. I feel this president is a clear and present danger to our democracy, our planet and even the Republican party. We are a Republic, not a kingdom and certainly not a mafia-ruled domain.

Underneath a few headlines

We get so consumed with the person who shall not be named, we lose sight of other stories. Here are a few on this Father’s Day.

– Hong Kong citizens reminded the financial city leaders they are promised a different path forward by their owner. One million people equal to 1/7 of the city’s population protested the proposed law to extradite people to mainland China. The law was postponed, as a result. It should be noted some big money investors threatened to move money to Singapore to aid their cause. I applaud their protest and shows the power of people. China can ill-afford the notoriety or flight of capital away from Hong Kong.

– An issue that needs attention today, is a subset of our US debt issue. Social Security will soon pay out more than its revenues. This will draw down the trust fund in a way to require automatic 20% cuts in sixteen years. Of course, we could act now and make less onerous changes, but politicians are not even talking about this issue, which is par for the course, in my view. Why plan ahead they ask by their failure to act? I have seen exercises where a group of locals solve the Social Security funding dilemma. It should not be that hard for our representatives to act like such.

– Another shooting at Costco in the Los Angeles area occurred this weekend. Public shootings are now so commonplace in the US, it made page four of my newspaper. And, that shows how derelict our so-called leaders are in failing to do anything of substance. We have become too inured to gun deaths in the US. This makes me sad and angry that our representatives are failing to address a huge problem that is killing people. If Sandy Hook and Parkland school shootings can’t bring greater change, I truly do not know what will.

– Both Brazil and the US need more doctors, especially in rural areas. Brazil is seeing visiting Cuban doctors bail on them, as they are not getting paid what they are owed. Why is a good question? In the US, medical students are going more into specialty areas. With student debt, it is hard to practice in low income areas and in lower margin general services. There are good ideas with telemedicine, but doctors need to see their patients up close to assess risk, physical and environmental.

If you have not heard of these issues, it reveals how little we pay attention to news and news not related to a someone who commands so much attention. I am hard pressed to ever remember an occupant in the White House consume so much attention.

I could use a heavy dose of boring competence in a leader who need not be the center of attention. Maybe then, we could address some of these issues. So, let’s celebrate Hong Kong’s successful protest and speak to issues like these and others. Again, I hope fathers are having a wonderful day.

Boom, boom, boom, boom – the US deficit and debt continue to explode

In honor of John Lee Hooker’s famous lyric, which is played at the beginning of “NCIS – New Orleans” and in the movie “Blues Brothers,” a good wake-up call for our US deficit and debt is “boom, boom, boom, boom.” Please note, this is not the trade deficit, which is overblown as a problem as we are more of a consumer nation. This is due to our government spending far more than they take in revenue.

Per the following introduction in a Bloomberg News article, “U.S. Budget Gap Balloons to $739 Billion Despite Tariff Revenue,” we have an escalating problem.

“The U.S. budget deficit widened to $738.6 billion in the first eight months of the fiscal year, a $206 billion increase from a year earlier, despite a revenue boost from President Donald Trump’s tariffs on imported merchandise.

The shortfall was 38.8% more than the same period a year ago, the Treasury Department said in its monthly budget review released on Wednesday. So far in the fiscal year that began Oct. 1, a revenue increase of 2.3% hasn’t kept pace with a 9.3% rise in spending.”

Right now, our US debt tallies more than $22 trillion and was expected to increase by $10 trillion over the next ten years, before the tax cuts in December, 2017. Our fiscal year runs October through September, so this is the first fiscal year with full benefit of the tax cuts. The Congressional Budget Office forewarned the tax cuts would increase the debt by $1.5 trillion over the next ten years over the already projected $10 trillion. That will put us closer to $34 trillion at that time.

Yet, Americans were told by the president and favorable politicians that the CBO was wrong and growth would accelerate enough to pay for the debt using the assertion “the tax cuts will pay for themselves.” Per the Committee for a Responsible Federal Budget, tax cuts do not pay for themselves, with the best historical result being in the neighborhood of 30%, but usually much less. That leaves 70% of the revenue reduction adding to the deficit in the best of times.

The reasons for the increase in deficit are increases in military, healthcare and interest cost spending, which have overshadowed the revenue increases due to the longest running economic growth period in the US. Even the worst budgeter amongst us knows, we should be paying down debt when times are good, not increasing it. Sadly, the economy has begun to slow some, so the tax cutter’s rosy projections of 4% and above growth have not materialized (except in an isloated quarter) and economists are expected  lower growth rates than the current 3% per annum the rest of the year.

Per The Concord Coalition, the above Committee for a Responsible Federal Budget and the Simpson-Bowles Deficit Reduction plan from December, 2010, we must solve our deficit and debt problem through spending cuts and revenue increases (tax increases) both. The math will not otherwise work. If any politician, no matter how smugly, tells you otherwise, they are not be honest with you or are misinformed themselves.

To be brutally frank, I said so then, but the tax cuts passed in December, 2017 were malfeasance in my mind. We borrowed from our future to make a pretty good economy a little better. It was also hypocritical. Former Freedom Caucus members got elected saying the previous $5 trillion, then $8 trillion, then $13 trillion debts were abhorrent. Now, when it is just below $22 trillion, they pass a bill that increases it even more.

When I raised this with a Freedom Caucus staff member, he curtly told me the CBO is often wrong and they are wrong on this. My push back was simple. These folks do their homework to try and get it right. And, what I have found in my 40 years of adult life, is politicians hail the CBO when their number agree with their decision and call them on the carpet, when they don’t. Yes, it is a projection, but these folks try to be apolitical.

Folks, we have a problem that is not getting talked about enough. We must cut spending and raise revenue. My GOP friends have ceded their fiscal stewardship mantra – that is highly unfortunate. My Democrat friends need to question every candidate on how they plan to pay for their ideas and what they plan to do about the debt. We cannot have Medicare for all if we cannot pay for it.

So, let’s get real and ask politicians some pointed questions. If we don’t, John Lee Hooker will sing even more loudly. “Boom, boom, boom, boom.”

 

Out of the pool

I think it is time to fire any politician in Washington who is forgetting why they are there. We could start with the White House incumbent and then take out hundreds of members of Congress in both houses. I understand fully Congress must investigate and provide oversight over the Executive Branch. That is part of their job and the current incumbent has given them cause to dig further.

Yet, I have this simple idea that leaders of both houses sit down with legislative liaisons from the White House and figure out some things they can pass and sign into law. I think a civilian board could list about a dozen major issues to focus on and say work these out. It should not take a civilian board, but these folks are too beholden to funders to come up with a workable list.

A key reason for not listing the problems is too much discussion occurs around whether not solving an issue helps them politically. A curse word comes to mind, so please insert your favorite. A good example is a bipartisan Senate immigration bill was passed in 2013, but the House refused to take it up as leaving immigration unaddressed would help the Republicans in the 2014 midterms. The Democrats should not be smug as they do the same thing.

Because of the Republicans unhealthy focus on dismantling the Affordable Care Act, the party justifiably lost seats in the 2018 midterms. To be frank, they should have lost seats with a rushed process that did not follow form and came up with several awful ideas. They should also thank Senators John McCain, Susan Collins and Lisa Murkowski for saving them from themselves by voting against an ill-conceived vote.

But, what have Dems done with improving the ACA with their winning back the majority in the House – nothing other than “beating on their chest” bills that went nowhere? Not that they were bad bills, but don’t wait until an election in 2020 to address healthcare. The ACA is imperfect, but is working OK and needs some more stability and improvements due to initial design flaws and several efforts by the GOP to sabotage it.

So, Ms. Pelosi, Mr. McConnell, and Mr. Pence, get your fannies in a room with a white board and figure out how to get something done. I do not care which party benefits from what comes out of this. The key is we benefit. Do something that will be signed into law by the mercurial man in the White House. So, Mr. Pence you better have the Queen of Hearts’ blessing to make deals or you may lose your head.

Here are few items for the list:

• Stabilize the ACA: pay insurers what we owe them (yes we reneged on two deals with them) and invite them back to the market to have more competition. Consider expanding Medicare to age 62 as a trial to improve the risk pools in both the ACA and Medicare. Push for the remaining states to expand Medicaid.
• Address better gun governance: another mass shooting occurred yesterday and nobody in office cares. More suicides occurred yesterday and nobody in office cares. A few accidental shootings and homicides occurred and nobody in office cares. It is a holistic problem that needs holistic solutions. Do something, anything that will help even if it is just a little. Universal background checks and elongated waiting periods would be well received by the majority of Americans.
• Address climate change at the federal level: Cities, states and some industries are moving forward without an active federal government role, which is rightfully being sued by 21 children for failure to address what they have known about for three decades. They actually have a good case. This is also a jobs and economy issue as we can look backwards and get passed by or look to growing renewables industries. As a good example of looking backward, we let China seize a significant majority of the rare earth metals market share from us which is now a threat to national security.
• Address the debt and deficit: Trade deficits are not a big thing as we are a consumer driven economy. The far bigger crisis is our national debt and growing deficit. We have to pay for things and the less we do, the more risk we have with a growing interest cost as a percent of our annual budget. We must increase taxes and reduce spending, both. The GOP has forsaken its role in being a budget hawk passing a tax bill that made a growing problem worse. Revisit the Simpson-Bowles Deficit Reduction plan and do some of those things.

I will stop there, but there are more problems to address. Immigration is a problem, but it has been made worse under this president by cutting funding to help some Central American countries improve the lives of their citizens and the lack of judges to address the increased migration. A wall is not an answer. It is merely a structure. Dusting off that bipartisan Senate bill from 2013 would be a good start as well as addressing DACA. We need to keep educated young people in our country, as growth is an issue.

So, legislators, please get in a room and do some things that will pass. The focus should be on helping Americans, not helping legislators. Stop worrying about keeping your job and do your job. And, yes continue your oversight role as we are a republic not a kingdom.

 

 

 

Credit and blame

UK Prime Minister Theresa May is stepping down today. This imperfect person has received a huge amount of blame for the failure to deliver a Brexit deal. Yet, I believe she had an unenviable task of herding the many and varied egos in Parliament who did not focus on getting the job done.

Living in America, we see this first hand, as posturing is more important than doing. Even before the fear-mongering and storytelling that has replaced civil debate, I have been disappointed in the demise in bipartisanship behavior.

Ironically, the last period of significant legislation occurred when GOP Speaker John Boehner ignored the Freedom Caucus and worked with moderate House Democrats to pass bills the Democrat led Senate would pass into law. He did this enough, that he retired before the Freedom Caucus rebellion ousted him.

Now, only handfuls of significant laws are passed as neither major party wants the other side to get a political win. Actually helping people is secondary to the perception of looking good. We have a president who does the same focusing too much on perception. He even controls his messaging taking credit for things he has little to do with and laying off blame on others when he the finger could be pointed at his efforts.

Blowing a problem out of proportion, making it worse by not addressing the real issues, threatening an action that gets push back from all sides and then coming to agreement on efforts that are already underway, is all a show that is harmful to relationships and commerce. People and companies need more stability in their lives, not less. When applecarts are upset, they have to look at other options.

This month, the US economy will be celebrating ten years (120 months) of economic growth. The president has been sure to pat himself on the back for this and he did provide some short term tailwinds with the tax cut and regulations cuts. Yet, he has only been president for going on 29 months. That means, 91 months of this growth were under Obama and the stock market more than doubled under his watch.

To be frank, presidents get too much credit and blame for the economy, providing at best headwinds and tailwinds. The headwinds this president has caused are more long term – debt, tariffs, immigration focus, pulling out of trade deals, etc. The economy is slowing its growth and more slowing is expected to occur. But, a given is this president will lay blame on others as it slows – he started last fall making the nonpartisan Federal Reserve the bogeyman.

Credit and blame. I have often quoted a leadership consultant I know, who said a great leader deflects credit to others; a bad leader accepts credit even when not due. Think about that as you hear or read tweets from leaders.

Call me crazy

I hope everyone had a great weekend. We are living in interesting times, some would even use the word “crazy.” Here are a few random thoughts to match the times.

– A real hero is someone like Lori Gilbert Kaye, a 60 year-old woman who lost her life in this weekend’s synagogue shooting. She lost her life because she threw her body in front of the Rabbi. Please share her story rather than the name of the cold-blooded killer, who not only killed her, but shot two others, including an eight year old girl.

– I agreed with the President when he said people need to get vaccinated for measles.. Then, as I read on, he said during the campaign the measles vaccine is linked to autism. When will this man understand that words matter and people do not realize that the significant majority of the words this man says are untruthful ones?

– Speaking of lies, The Washington Post has recorded 10,000 lies by Trump as President. Former Speaker Newt Gingrich defended the President saying he is a businessman and is allowed to exaggerate. Mr. Gingrich, I am a businessman and if someone in business lied like the President, people would not do business with him very long. Further, why did an independent contractor who dealt with Trump companies say “Word on the street is if you do work for Trump, get paid in advance.”

– A recent poll conducted by Opinium said 55% of Brits now feel the 2016 Brexit vote was a bad idea. They have time for another vote, but not if they wait. A fact based process would help, but it would also help here in the states.

– With the advent of market segmentation in all things, including the pseudo-news and now data, we seem to be moving closer to another Robber Baron period. Now, it is so easy to obfuscate voters, they do not know that elected officials are making changes that help the wealthy. What is also unsurprising is how easily more strident groups can be fooled to go along, provided you play to their fears.  Immigration is being sold as the problem, but the main problems are technology and CEOs chasing cheaper labor costs. In Western countries the haves and have-nots are even more divided. Unless something is tangibly done, this bifurcation is unsustainable.

– Finally, it is amazing how little the US leaders talk about our ticking time bomb problems – job retraining as technology kills more jobs, increasing debt, environmental degradation, global water crisis, stabilizing healthcare costs, crumbling infrastructure and climate change. The GOP is running on building a wall, proliferating gun ownerships, restraining abortions and how bad socialization is. Make all candidates answer questions about these ticking time bomb problems. If they cannot, do not vote for them.

Call me crazy, but maybe, just maybe, the ones who are crazy are the ones not addressing real issues and telling real truths. You be the judge.