Tag Archives: economy

On the Federal Budget Battle: Radio Essay for April9, 2011

When I wrote this piece, Budget Armageddon was at hand. The sun has not yet risen a scant 7 hours later, and it appears that budget catastrophe has been avoided. Details are sketchy but it looks like the focus turned more towards financial issues rather than social issues. There is a short continuing resolution that will feature Congressional debate before the Congress votes to approve this compromise. We will have to be patient as this day breaks to gain full insight into the solution. Notwithstanding the facts of the compromise, the content of this essay remains germane.

The year was 1944 and the Allies had landed at Normandy in June and pressed forward through Western Europe seemingly at will for the next six months. Now comes the dead of winter in Belgium’s Ardennes Forest and the Nazis capitalize on an exposed weakness and severely threaten the entire invasion. When offered a Nazi ultimatum to surrender, General Anthony McAuliffe simply answered, “nuts.” Enter General George Patton. Blood and guts George Patton, who spins and whirls and brings his Third Army into the fight to relieve Bastogne and one General McAuliffe. The Allies, of course, go on to defeat Hitler, win the war and secure the peace on the continent for the next 67 years.

Where is one to stand on this Battle of the Budget? Is there anyone coming to rescue us? Is John Boehner the latter day General McAuliffe saying, “Nuts,” to Senator Reed and President Obama? Or is it the specter of the Tea Party caucus putting those words in Mr. Boehner’s mouth. The problem is we really don’t know what is going on in the negotiations.
If one believes the NY Times, the Republicans are moving the end zone by feigning to fight for fiscal cuts to the budget while their real agenda is one of pressing social agenda issues and neutering the EPA on regulating greenhouse gas emissions. The Wall Street Journal seems to accuse the President of setting up this Battle of the Budget for political purposes of his own. It is an “all or nothing” gambit for the President. He has the power, through Executive Order, to make payments to our servicemen, to our seniors and to other important constituencies if he chooses. He does not. He is picking a fight.

But why fight this seemingly innocuous battle? Could it be that the real culprit in this current drama is not the Tea Party but the Democrats? Is it merely a smokescreen to fight on about a budget that was supposed to be wrapped up 7 months ago by a Congress entirely controlled by Democrats with a Democrat in the White House? If all we were talking about was money, 10, 20 or 30 billion dollars that would be one thing. What we are really talking about is the 2012 budget and the courageous piece of work put forward by Representative Paul Ryan of Wisconsin.

Let us be clear. The budget proposal put forth by Paul Ryan, the Republican budget proposal, is just that: a proposal. It is not necessarily a “Path to Prosperity,” as the subtitle implies any more that the Obama stimulus was the American Recovery and Reinvestment Act.

The Ryan proposal is just a point of departure. It is fraught with risk and uncertainty. It contains optimistic assumptions that stretch out far into the future. What I admire about the proposal is that someone in Washington is actually looking out beyond the next election cycle. In the case of this silly budget impasse that threatens to shut down the government, we are focusing an inordinate amount of attention on a five month spending plan while the real problems of our time are fertilized by our neglect. The Democrats are trying to paint the Republicans, and the Tea Party, in particular, as cold hearted, insensitive demons bent on starving Grandma. What is true is that we are all going to have to let go of some degree of government largess. We do not need it and we cannot afford it. There are bills to pay today that we cannot manage and the bill compounds with each passing budget year.

I used to fear for the future of our grandchildren and our children. It is time to think about fearing for our own future. It is time to demand accountability from our elected officials in Washington and stop with the meaningless and frivolous rhetoric of politics and begin to think about making American exceptionalism more than just a campaign slogan. We needed someone to say, “nuts.” It looks like we got that. I wonder who played the role of General Patton?

Press on.

Leave a comment

Filed under Essay, Uncategorized

The Tom Wesley and John Weston Review: April 2, 2011

Leave a comment

Filed under Uncategorized, uStream

On the 112th Congress: Radio Essay for April 2, 2011

I recall with some fondness the kindly countenance of Ed Koch, the three term Mayor of New York City in the late 1970s and through the 80s. He described himself as a “liberal with sanity,” and would always ask anyone who would answer, “How’m I doin’?”

Today marks the 5 month anniversary of the Republican sweep to majority in the US House of Representatives and the shift away from a desperate minority position in the Senate. The balance of power clearly moved towards a more conservative legislative mandate. That mandate was fueled, in large measure, by an awakening of the American People.

Some would credit the Tea Party for this momentous change and they would be partially correct. True, the Tea Party movement provided invaluable “feet on the street” to power upstart candidates who espoused conservative and Constitutionally compatible viewpoints into office. While it would be correct, in my opinion, to credit their activism for the ideological shift, it would be incorrect to say that Tea Party activists accounted for all of the votes.

If we credited every Tea Party vote to a Republican candidate in 2010, we would fall far short of the number necessary to explain the good fortune of the Republicans. What the Tea Party did is to ignite a latent sense of outrage among what was formerly called the silent majority. Silent no more, disillusioned by the partisan rancor, the ideological gridlock, and the seemingly self-serving interest of long term incumbents who had never earned a paycheck, they voted to “throw ‘da bums out” last November.

When the Democrats label Tea Party activists as extremists, as Senator Charles Schumer recently did in front of a live microphone, they are essentially painting the mainstream American public with the same broad brush. They do so at great peril.
The issues last November were centered on the ailing economy; the soaring national debt; and, immigration reform, especially focused on illegal immigrants. Here are some issues you might recall from the campaign: the GM bailouts; the union-oriented stimulus bill; Governor Jan Brewer and the Arizona immigration law. There were many more.

The questions before us three months into this term is this: has the 112th Congress advanced the ball? Have they advanced it in terms of reducing the national debt, or even in passing a budget for FY2011, now half over; have they advanced it in terms making a substantial dent in making American corporations more competitive by reducing income taxes; are US jobs being retained and increased here in the US; have they advanced the ball by requiring stricter border enforcement? In each case, the answer is, “no.”

The Tea Party caucus is struggling to do precisely what they were sent to Washington to do: reduce spending, reduce taxes and secure our borders. Instead, our Congress is kowtowing to special interests and focusing on gaining marginal victories on conservative social issues. They are compelling but can easily distract us rather than seize the advantage granted them last November. Our government is on the brink of shutdown as early as next week as Congress tinkers around the edges of reducing the amount of growth in the budget rather than resetting the bar to 2008 levels. Immigration reform is on the back burner.

So, what has changed since November? Unfortunately, not much. The “system” is weighing down the change agents in Washington. They are going to need our help to keep the faith and to fight the good fight to restore the promise of the American Dream for our children and their children. Do not become distracted by extremist rhetoric and do not give up hope. We have made tremendous inroads but the conservatives who have secured the beachhead need reinforcements and firepower. That happens in 2012.
So, as Mayor Ed Koch would, “How’m I doing?” My answer so far is: press on.

Leave a comment

Filed under Essay, Uncategorized

The Tom Wesley and John Weston Review: March 19, 2011

Leave a comment

Filed under Uncategorized, uStream

On Energy: Radio Essay for March 19, 2011

It has been more than one week since the earthquake and subsequent tsunami devastated the Fukoshima Daiichi power plant and plunged Japan and the rest of the world into a nuclear crisis. And it has been about a month since Libyan Colonel Muammar Khadafy determined to beat back civil insurgence with violence. Each incident has taken its toll on a common concern: the fragile state of worldwide energy supply.
On one hand, we have a stable, democratic government coping with a crisis involving the peaceful, though potentially catastrophic, use of nuclear energy for electrical consumption. On the other, we see the effects of oil production and supply running through the fundamentally unstable, despotically run regime of a Middle Eastern potentate. Ironically, the outcomes on a global scale are similar and the so are the lessons to be learned equally similar. Namely, providing power is not without risk and not immune to vulnerability.

No matter what your opinion of energy exploration and energy development may be the thirst for energy remains insatiable. The worldwide DEMAND for energy grows dramatically and threatens to outstrip reasonable supply within our lifetimes. The US is the largest consumer of energy. Our comfortable lifestyle and large industrial base places a heavy burden on global supplies. The full emergence of the so-called emerging economies is upon us. Their growing standards of living and increasing industrial output are sucking up any excess supply of non-renewable energy. The full recovery of the US economy is dependent in no small measure, on the continued supply of affordable oil. And this is not a given.

So what is a country to do? Drill, Baby, Drill? Maybe. Probably. But more is needed. Much more. There is a tendency to pooh-pooh alternative energies as too exotic or too expensive or too dangerous. All of this is in a state of flux around the demand equation. Some are exotic and expensive and dangerous. Taken individually, no one solution will ever close the gap between supply and demand. The truth is this: we need a bit of everything: nuclear, on-shore oil, off-shore oil, oil shale, nuclear fission, nuclear fusion, solar and wind, tidal and hydro. No one energy source offers a panacea. Given time, the natural balance of supply and demand will determine the winners and losers in the marketplace, not government. And government must resist the temptation to pick winners and losers though the arcade game of punitive taxation to drive social behavior. The market will provide. More specifically, the Free Market will provide.
Several nations have begun to express skepticism of the continued production of nuclear energy. German Chancellor Merkel is all-but-sounding the death knell for German nuclear plants 10 years hence. Wisely, Secretary of Energy, Steven Chu, has called for a review of the facts in the Fukoshima disaster but not for a moratorium on new construction. He is right to do so. Despite the impact of the strongest earthquake on record and a tsunami of biblical proportion, the disaster in Fukoshima was avoidable had the backup power been available. That is not extreme science; it is simply risk mitigation.

American power production loses over 50% of its output in transmission, and 1/3 of what is left through energy waste. We have the means today to eliminate the need for foreign oil through improved efficiency in home and commercial construction and residential electronics. Let’s get started on that.
We need a lot of arrows in the quiver on this one. The role of government in this should be to remove obstacles to development; let the market drive solutions; clear the path towards energy independence through the elimination of waste. Without a comprehensive approach to solving our problems, we might as well just kick the can down the road for the next generation to solve.

Press on.

Leave a comment

Filed under Essay, Uncategorized