Tuesday, December 7, 2010

Rebels Without a Cause?

It was a "chicken-run" by the Republicans and the Democrats, drag-racing to the edge of the Bush Tax Cliff as the sun was setting, but who really bailed out of the car and who remained will be revealed in two years. In the movie, the adversaries, Jim (played by James Dean) and Buzz, check out the abyss of the cliff before climbing into their cars:

Buzz: This is the edge. That's the end.
Jim: Yeah. It certainly is.
Buzz: You know something? I like you. You know that?
Jim: Why do we do this?
Buzz: You got to do something, now don't you?

And that seems to be the nature of the "deal" between the two parties: "You got to do something, now don't you?" On the surface, President Obama caved in. Someone had to and it was pretty clear the Republicans were prepared to fly off the cliff to preserve the precious Bush tax cuts for "everyone," especially for the wealthiest, the old Razzle Dazzle 'em of trickle-down economics.

We now continue the drag race to the same cliff in two years but this one also includes the Presidential election. If the "compromise" just further expands the deficit without creating meaningful jobs, the Democrats will blame the Republicans who will be left in the car. Of course the American people will be in the passenger's seat. "This is the edge. That's the end."

Wednesday, December 1, 2010

Dueling Headlines

No sooner after writing the last entry of this same date, these two headlines from AP accosted my in box:

AP Extended unemployment benefits for nearly 2 million Americans begin to run out Wednesday, cutting off a steady stream of income and guaranteeing a dismal holiday season for people already struggling with bills they cannot pay. Unless Congress changes its mind, benefits that had been extended up to 99 weeks will end this month

AP GOP says it'll block bills until tax cuts extended. "While there are other items that might ultimately be worthy of the Senate's attention, we cannot agree to prioritize any matters above the critical issues of funding the government and preventing a job-killing tax hike."

Translation: if the peasants have no bread, let them eat cake! Translation for "job-killing tax hikes" for those in the highest income bracket: trickle-down economics with no basis in fact.

This was exactly my fear after the mid-term elections: If the Republicans and Tea Partiers interpret their gains to mean they now have carte blanche to keep the Bush tax cuts for the highest wealth tier -- people who would not be hurt by some roll back to pre-Bush tax levels -- the result will only increase the deficit further.

More posturing at our country's expense.

Cheery Tidings from the Social Security Administration

For the second year in a row, this happy news from the SSA, received in the mail yesterday: "Your Social Security benefits are protected against inflation. By law, they increase when there is a rise in the cost of living. The government measure changes in the cost of living through the Department of Labor's Consumer Price Index (CPI). The CPI has not risen since the last cost-of-living adjustment was determined in 2008. As a result, your benefits will not increase in 2011."

What a country, retirees are protected from the ravages of inflation, and, better news, yet, there is no inflation! Hooray! There is certainly no inflation in interest rates from CDs, that's well documented. Thank you, The Federal Reserve!

Of course the SSA's Cola adjustments are made through the most bizarre calculation. Sounds like a lot of sleight of hand, but here is an explanation.

It is interesting to review how the CPI gets measured and how such measurements might distort what inflation seniors really face. According to Bureau of Labor Statistics Consumer Price Index the prices of certain items have actually declined over the last year, specifically Window Drapes (8.00%), Peanut Butter (5.10%), Bedroom Furniture (5.00%), Dishes (4.40%), and Sports Equipment (4.00%). But, with the notable exception of Peanut Butter which many seniors may have resorted to consuming, these items are probably not frequently among their purchases. On the other hand, let's look at some of the offsetting increases: Funerals +2.20%, Dental Services +2.80%, Nursing Homes +3.50%, Physicians Services +3.50%, Prescription Drugs +3.90% and Hospital Services +9.30%

No inflation for seniors? Ha. Also, for a quick peek into the future, let's review the past: According to the Bureau of Labor Statistics, the purchasing power of a 1984 dollar is now $.458 while a 1967 dollar is only $ .153.

No doubt entitlement programs need to be looked at along with taxes to get our fiscal house under control, but inflating away the dollar and playing shell games with Social Security is what happens when Congress cannot agree on anything and political posturing is all our representatives seem to be able to do. We've become a sound bite democracy.

Meanwhile, on another, but related topic, the essay du jour is Bill Gross' latest, with his conclusion saying it all: "The United States in short, needs to make things not paper, but that is not likely unless we see a policy revolution in Washington DC. In the meantime, our unemployed will continue to fill out forms and stand in line. We’re living here in Allentown."
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Thursday, November 25, 2010

Happy Thanksgiving

A recent email exchange with my friend across the pond, Danny, in which I wished him a Happy Thanksgiving, reminded me that this is a uniquely American holiday (although he reciprocated the wishes with news about his growing family as well as noting the passing of people we both worked with -- we are of that age).

Yesterday's PBS broadcast of the New York Philharmonic's remarkable concert last March honoring Stephen Sondheim's 80th birthday is a joyous, American story. Sondheim has taken musical composition and lyrics to places no one could have imagined. I am grateful that we honor such genius in this country, even though his art is not main stream. Another gift he has given us is his recent book, Finishing the Hat. It is the story of his craft, brilliantly written (along with his lyrics), honestly presented, even self deprecating at times (but not often) along with his take on virtually every great participant in the American musical theatre, and he has known them all. Imagine if Beethoven took the time to explain his craft in his own words, but comprehensible enough for us mere mortals. But as I have not "finished" Finishing the Hat, more on that later.

And, although there is increased polarization in this country, at least we live in one of the few places where we can say what we think. But in the saying comes some responsibility and a friend of mine reminded me of that, criticizing my last entry, pointing out that liberal media, in spite of Fox News and other affiliated media , is still dominant in this country. That might be true, and I apologize to anyone I offend by anything I satirically write. However, exaggeration and sarcasm are the hallmarks of satire so some of what I say is not intended to be interpreted literally. Nonetheless, there are a plethora of views of our political system, and the economic paths we seem to be inexorably following, and thankfully in this country we can express those opinions.

Finally, to friends and family, both near and far, Happy Thanksgiving, my favorite holiday, a uniquely American one.


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Tuesday, November 23, 2010

All the News That's Feigned to Print

The Rupert Murdoch owned Wall Street Journal reported yesterday that the Rupert Murdoch owned HarperCollins Publishers will sponsor a 10-day book tour by their author, Sara Palin, who is a contributor to the Rupert Murdoch owned Fox News.

The occasion is the publication of her book "America by Heart: Reflections on Family, Faith, and Flag," a follow-up to her best-selling "Going Rogue." In addition to those credentials for her inevitable run for the Presidency, Ms. Palin is also the star of her own reality TV show, "Sarah Palin's Alaska." Her daughter Bristol is indirectly campaigning by her appearance on "Dancing With the Stars," another prime time "reality" media production.

In addition to those qualifications, Ms. Palin has a bachelor's degree in communications, having attended a number of colleges in the pursuit of that degree, was a TV newscaster, and served as a mayor of a town of some five thousand people and for a couple of years as governor of Alaska with a population about the size of El Paso, Texas. She resigned her governorship to pursue her interests in self-promotion.

Besides having Rupert Murdoch's News Corp empire as a backer, she owes her political career to John McCain who brought her to the national stage in a desperate act to carry the 2008 presidential election.

Can this "rogue" politician continue to skillfully manipulate public opinion by charisma alone and a friend in high places? And will she continue to supply News Corp with all the fodder necessary for higher ratings, greater circulation and therefore more advertising and sales? A nice symbiotic partnership? You Betcha'

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Monday, November 22, 2010

Get Over Your Junk

Get over it already! Having an implanted medical device for almost twenty years and having flown frequently both domestically and internationally during that period, I've had more pat downs than Tiger has had lap dances. Furthermore, having endured the indignity of backless hospital gowns and medical procedures on a number of occasions, my being naked on a faceless image of a body scan sure beats being blown to smithereens at 30,000 feet.

Amazing, this "outcry" against thorough airport screenings is exactly the kind of disruption terrorists want and the American public is buying right into it. Instead of just going through this in an orderly way to expedite the process, we conjure up images of our constitutional rights being violated. It will take only one tragic incident in the air to silence these critics, something they are inviting by their protests.

Do I think these rigid guidelines are the answer to combating terrorism in the skies? No, but they are part of a solution, and an easy one if everyone simply cooperates. Ten seconds in a body scanner is not too much to ask. Your "junk" is not so sacred. Stay home and never go to a hospital if you think it is.

Wednesday, November 17, 2010

What Happened and What Will the Future Bring?

The question relates to the midterm elections and the answer comes via the oblique route of my 50th high school reunion. In the summer I was invited to the reunion but unfortunately I would not be able to attend.

My "old" classmate, Eileen, who did a yeoman's job organizing the reunion was disappointed (as was I), but told me that our grade advisor from those by-gone years, Mr. Brickner would be there. I was delighted to hear his name again and to learn he was well. She said she would be meeting with him to finalize plans and she was still having difficulty addressing him as "Roger" rather than Mr. Brickner. I know what she meant. Our class had tremendous respect for Roger Brickner. And, for me, he was not only my advisor, but an important mentor (probably unknown to him). My first three years in high school were mostly wasted opportunities, but when I had Mr. Brickner for Honor Economics, all that changed. I wrote to Eileen that “he is one of the few teachers I so clearly remember as being encouraging of my dormant academic abilities and I would love to be able to be in touch with him to thank him.”

Ellen passed on the information and one day I received a phone call. It was Mr. Brickner, animated and enthusiastic, exactly as I remembered him from fifty years ago. I had the opportunity to personally thank him for being such a supportive teacher and asked him whether he still wore his trademark bow tie (no). We exchanged email addresses.

Suddenly I began to receive broadcast emails from him about the, then, upcoming midterm elections, detailed analyses covering the house, senate, and gubernatorial races, state by state, projecting winners and the reasons why. I was stunned by the scope of his knowledge and asked whether he worked professionally in this area after teaching. He wrote back, "My interest in politics is an enthusiastic avocation. I began to predict presidential elections as a teenager and since I thought Dewey would win in 1948 I have been lucky to pick every winner since that time. The key is understanding where the American people are each fall of a presidential year." Now I understood why he was the champion of mock political conventions in our high school. I participated in the one for 1960 and as I recall placed Margaret Chase Smith, the Senator from Maine, in nomination for the Presidency, which put me way ahead of the times (imagine, a woman President!).

His predictions were remarkably accurate, nailing almost all the races, and reading his forecasts was a better use of time than watching the network "calls" of the election. As the projections of all the major networks -- ABC, CBS, CNN, FOX, and NBC -- rely on the same exit poll information gathered by National Election Pool (NEP), their calls and analysis can be dully redundant. It was a breath of fresh air to read Roger's coverage and projections, all well before the exit polls gathered by NEP were distributed to the networks. After the election he sent a daily email dissecting the house, senate, and gubernatorial results. On November 9 he did an omnibus summary, musing about the possibilities for 2012, which I publish in its entirety as a valuable guest entry:

WHAT HAPPENED AND WHAT WILL THE FUTURE BRING?

Dear Friends:

First and foremost, the election just concluded (with still a few undecided races) WAS truly a remarkable one. It tore down past records. The Republicans now have more state legislators than they have had since 1928. They have seized control of the House to a greater extent than they have had since 1946. Hardly a record, they added six seats in the Senate, remaining behind by a 53-47 margin. In number of governors they are very close to their all time highs of the 1970's and 1980's.

What caused this surge to the Republicans? The public never accepted the assurances of the President and the Congressional leaders that the Medical Care measure was in their interests. They were appalled by the dealings in congress and the twisting of arms. Standard behavior in Congress, but not appreciated by the public. But if the Medical Care bill hurt, it was the inability of the Administration to lower significantly unemployment. There also was the feeling that nothing was being done to limit the power and the machinations of Wall Street and Big Business. Not spoken about in the campaign I believe it was an underlying factor. It not only united the left with the populist tea party right, but it activated the latter while depressing the former.

The president himself was a substantial factor. Not that he did not achieve Congressional measures he fought for, but that he seemed not to be able to communicate to the public easily. He was viewed as being "an educated elitist" who was not comfortable with ordinary people. A bit like Adlai Stevenson.

Losses in key areas were devastating. He lost 21% of the over 65 voters, who voted in a greater proportion than in 2008. On the other end the under 30's held in their support BUT far fewer got out to vote. White men, white women, less educated all shifted strongly to the Republicans. Blacks remained loyal to the Dems. Their proportion of the vote dropped however.

The tea party played a role in the 2010 election... it helped both the Republicans and the Democrats and it hurt both as well.. It is a dynamic loosely knit group of individuals motivated by a desire to change the way government has been going of late. It is quite the populist movement, hardly a sophisticated bloc of traditional activists tightly organized. It has had the effect of bringing out voters. It has encouraged participation of voters, particularly in Republican primaries, challenging both Conservative and Moderate party standards. In three cases it achieved the nomination of tea party types in areas where the general electorate not inclined to support them. They undoubtedly caused the Repubs. Senate seats in Delaware, Colorado and Nevada. Had the standard candidates run in these states the Senate would be 50-50. If Lieberman ( I-CT) or very conservative Ben Nelson ( D-NE) had switched to vote to organize for the Republicans it would be a different story. Tea party has surely hurt the Repubs. in these three states. The Dems. can see this as a ray of hope for them. However, the Republicans undoubtedly were invigorated by the support of many in the tea party. Perhaps now that they have a half dozen tea party Senators and perhaps 40-50 House members they will understand the process of politics more than their exuberant backers. Indeed, I see this Repub. bloc as I did the Blue Dog Dems in the last Congress. Many of the Blue Dogs lost as readers of these letters expected. Many of the tea party winners come from these Blue Dog CDs.

The tea party may become involved in the populist cause of punishing the greed on Wall Street and be joined by the left wing pseudo socialists in the President's party. Perhaps this unlikely coalition will be an interesting development of tea party influence. Keep watch for this.

As the lame duck Congress meets later this month, I shall return to the issues and the wisdom of how much a lame duck Congress should attempt especially after a watershed election.

What is in this election to help us understand the 2012 election? History tells us that presidents bounce back after major defeats in Congress after their first two years... TRUMAN, EISENHOWER, REAGAN, CLINTON. All were two term presidents (Truman less only 80+ days). Does this apply to Obama?? History says it may well. But, just to play the game of IF THE PRESIDENTIAL ELECTION WERE HELD TODAY WOULD YOU VOTE FOR OBAMA OR FOR ROMNEY? My guess is that would be an extremely close election with perhaps 1% separating the two. Electoral vote? Obama 271, Romney 267. that would see Obama losing four major states VA, NC, FL, OH. It would be a nail biting election. BUT the election is NOT now, it is in NOV 2012.

A POSSIBILITY for 2012 is for third party(s) may become significant. It would really shake things up. A centrist party a la Bloomberg or a frustrated Tea Party on the right could mess up anyone getting a majority of the electoral votes. If that happened then the House votes by delegation for one of the top 3 candidates popular vote. If that were to happen in 2012, the Repubs. would make the decision for they are in control of 33 state delegations and only 26 votes are needed. So given that reality, it would seem a Tea party third party is the more likely. A centrist party would have to win a majority of the votes for it to win, and if it ran and did not, the Repubs. would again be able to vote themselves in. THIS IS ALL CONSTITUTIONAL OK??

Time to take a break, Roger