Reality and Politics Clash

Government dependency is a corrosive force that undermines democracy. TeamObama's thrust to transform America creates a collision course toward the destruction of democracy. How is it that so many people fail to see this?

When people accept the government as their source of basic sustenance, the spark of personal responsibility is slowly extinguished. Following that is a loss of a person's verve to better his/her condition. When government largess supplants individual initiative, the country is on the road to its demise as an example of freedom and liberty.

This should be the core debate in the elections ahead.

The Renewal of Civic Capitalism - NPQ – Nonprofit Quarterly - Promoting an active and engaged democracy.

Scott Harshbarger, Former Attorney General in Massachusetts, has it right in this graduation speech.

 "Civic capitalism is all about a robust business community, an engaged citizenry and a government that actively promotes your ability to provide a check on large institutions, from banks to corporations, and on government itself. It is about ensuring that democratic values endure, even as politicians and movements come and go. It is about rooting out corruption and insisting on honesty, opportunity, and full information, not just because it is the right thing to do, but because markets and civil society cannot function otherwise. Civic capitalism takes the long view, and teaches us that the government has a role in minimizing risks to the system—financial and otherwise—because that civil society is the base from which entrepreneurs and firms operate."

'via Blog this'

Smart Power Setback - NYTimes.com

Smart Power Setback - NYTimes.com:

Will we ever learn that western-style nation-building in tribal societies like Afghanistan cannot be done quickly...if at all?

"Violence doesn’t stem from poverty. It stems from grudges, tribal dynamics and religious fanaticism — none of which can be ameliorated by building new roads. The poorest parts of the country [Afghanistan] are not the most violent.

Meanwhile, the influx of aid has, in many cases, created dependency, fed corruption, contributed to insecurity and undermined the host government’s capacity to oversee sustainable programs.

In the district of Nawa, for example, Usaid spent $400 per person last year. The per-capita income before aid was $300. According to the World Bank, 97 percent of Afghanistan’s G.D.P. derives from spending related to the military and donor community presence." [emphasis added]

Bloggers in the Middle East: Don't be too cheeky | The Economist

Bloggers in the Middle East: Don't be too cheeky | The Economist:

Islamic culture does not inspire openness, transparency or true democratic freedom of speech given the evidence of crackdowns on bloggers by governments in Muslim countries. China is another bad actor in this regard.

Repressive governments are afraid of dissent and losing control and power.

"Iran is far from alone in locking up bloggers. Governments across the Middle East are increasingly twitchy about their citizens’ online activities. As internet use in the region has soared—up 19-fold since 2000, compared with a fivefold rise in the rest of the world, according to Internet World Stats, which monitors global internet usage—so the number jailed for what they do on the web has shot up too."

David Brooks on Greed and Stupidity - NYTimes.com

David Brooks summarizes the two dominant views of what caused the financial meltdown. Read his full analysis to understand these two schools of thought.

I don't think its as simple as Brooks describes. There are many sub-themes playing in this tragic opera. Greed may not only be about money. Power and the desire of bankers, lawyers, and Congressional and Executive branch people to 'hold sway' and be 'in charge' is also at work. Remember, these are people with massive egos that need stroking.

The greed and stupidity jingles also played at the bottom of the scale with stupid home buyers unable to afford the ridiculous mortgage terms offered by unscrupulous brokers that played on this stupidity.

For years our culture has been infused with the background hum that borrowing is better than saving and many have bought into the credit culture. Now they struggle with crushing debt. Some argue that the savings mentality that has come into vogue in this recession will lengthen it. Consumer spending is what's needed. Humbug! What's needed is personal responsibility and accountability for one's actions. Savings is one action that instills that trait. We need it for the long-haul health of our society and culture

This debacle is much more than a two-note song. I am convinced that Government has a very important role to play to prevent the country and the world from collapsing into a Depression. Nevertheless, we need to exert great caution to avoid undermining the market system on which representative democracy rests. We must be extra careful that we do not manipulate our flawed system of commerce into one that is worse.

"The greed narrative leads to the conclusion that government should aggressively restructure the financial sector. The stupidity narrative is suspicious of that sort of radicalism. We’d just be trading the hubris of Wall Street for the hubris of Washington. The stupidity narrative suggests we should preserve the essential market structures, but make them more transparent, straightforward and comprehensible. Instead of rushing off to nationalize the banks, we should nurture and recapitalize what’s left of functioning markets.

Both schools agree on one thing, however. Both believe that banks are too big. Both narratives suggest we should return to the day when banks were focused institutions — when savings banks, insurance companies, brokerages and investment banks lived separate lives."

Op-Ed Columnist - Greed and Stupidity - NYTimes.com

Response to an Email from a Friend

Our government exists on this basic premise: ".. in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defense, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity..."

Inherent in this ideal is the expectation that people will be reasonably free to conduct commerce, business and trade to enrich themselves in order to participate in and benefit from the framework of government created under the Constitution.

Certainly much has changed with respect to commerce and government in the intervening centuries, but one thing has not changed. That constant is the nature of Man.

While Man is capable of noble thoughts and deeds, our basic nature is inherently sinful, selfish, and greedy. Else why do we need laws to regulate and punish errant behavior and protect us from each other?  Laws are necessary to control the limits of greed and other destructive behaviors carried to extremes by some.
As long as we expect men and women to provide for their personal and family well-being and to create wages and wealth to be taxed for the 'general welfare and 'common defense,' the inherent traits of 'selfishness and greed' are a far more effective stimulus for individuals than any government decree or general prohibition.

I don't want my government prescribing how I should earn my living, regulating how much money I should earn, how much or how little wealth I can own or what business I can engage in. A framework of laws and sensible regulation for the common good, yes, but our Founders wisely recognized the inherent nature of man and intended that it flourish within a system of necessary  laws and common sense. This is the essence of freedom and an appeal to, but no guarantee of, nobler motives.

Yet because the interconnected systems of banking, finance and commerce have become so entwined and interconnected in this digital age, we are in uncharted territory. This calamitous complexity certainly could not have been envisioned by our Founders, perhaps not even by Mr. Friedman.

To avoid collapse, intervention by government is necessary, but we should recognize they are only human, too, and none of them have been down this road before. To some degree, they are winging it.

I'm not particularly an Obama fan, primarily because of his inexperience and understandable lack of wisdom. Perhaps he will mature in office. I am deeply concerned that 'team Obama' intends to implant an ideological agenda in our country disguised as an economic recovery plan and likely to spend ourselves into servitude to crushing debt and rampant inflation resulting in the country's rapid economic demise.

$73 an Hour: Adding It Up

Economic Scene - Figure Skews Debate of a Bailout for Detroit - NYTimes.com

This is an excellent summary of the real labor costs in the Big Three American auto companies in the U.S. (I assume the wage, benefit and pension numbers are only for American workers, although the piece doesn't specifically state that.). I recommend you read it.

I believe it's in our best interest not to let the Big Three fail because the ripple affect in the manufacturing sector supporting the Big Three is huge. Nevertheless, management, labor and politicians must accept the fact that the cost structure must change dramatically and quickly, otherwise even with loans now and no major surgery, they will surely fail later.

What we have here is yet another failure by Congress to be able do the right thing. Will a more Democrat controlled Congress with a Democrat President fare better? Time will tell.

Meanwhile, we will have run up a trillion dollar deficit this year alone. This is the real 800# gorilla lurking in the corner and our democracy's future is far less secure because of it.

Barack Obama's Victory Speech

I didn't vote for Obama because his extremely liberal credentials do not bode well for our country, but his victory speech is superb. Having run an excellent campaign for two years, his really hard work now begins (excerpt: "As a result, the shift from campaign trail rhetoric to halls-of-governance reality could prove turbulent. And Mr. Obama’s soaring speeches have created such a well of anticipation that there is a deep danger of letdown. He talked during the campaign of a “new politics” bringing Republicans and Democrats together. But if he really works with Republicans to find common ground on issues like Iraq, terrorism and climate change, he risks alienating his liberal base.") .

He must soon fashion and articulate a governing strategy that includes specifics. He has mostly avoided doing so up to now, yet was successful in convincing voters that he and his team could lead the nation to a better time.

With all the political might of a Democrat Congress, he has the opportunity to succeed in this very bleak time. The enthusiasm of the crowds that he engenders will not continue without a plan of action that is sensible, achievable and sustainable.

My hope is that the best people will step forward to help him as advisors and to fill executive positions.

Barack Obama's Victory Speech - Election Results 2008 - The New York Times

Government Beneficiaries

Creeping Socialism

The chart at this link shows that more and more Americans are dependent on Government for their livelihood as the years pass. For Government Beneficiaries, the data apparently includes government workers, contractors, recipients of government benefits and their dependents. I wonder if I'm counted because I receive Medicare benefits?

Argue with the data if you will, but I think it's obvious that America is heading to a socialistic state. Many factors drive this including the growth in government spending, the export of America's manufacturing base, and the 'you owe me/take care of my needs and wants' mentality that inexorably increases year after year as people become more dependent on government. This quote rings truer every time I read it:

"The mania for giving the Government power to meddle with the private affairs of cities or citizens is likely to cause endless trouble, through the rivaly of schools and creeds that are anxious to obtain official recognition, and there is great danger that our people will lose our independence of thought and action which is the cause of much of our greatness, and sink into the helplessness of the Frenchman or German who expects his government to feed him when hungry, clothe him when naked, to prescribe when his child may be born and when he may die, and, in time, to regulate every act of humanity from the cradle to the tomb, including the manner in which he may seek future admission to paradise." (Emphasis added)

-Mark Twain

Bin laden's September Videotape

If you've never read the rantings of Bin Laden (I hadn't), he will tell you that the Democrats have failed to stop the war in Iraq because they have been corrupted by large corporations. He opines that capitalism is the root of all evil and democracy is just a way for big corporations to exploit people and globalism is the present phase of that which is ruining the world via global warming. Funny, though, he never mentions China or India and their thriving capitalism.

Where was Bin Laden when the Marxists were spouting and spreading their 'workers of the world unite' and Communist ideology? They could have used him.

If there be any doubt in your mind that this man is dead set to eliminate us unless we reject democracy and capitalism and turn to Islam, read his speech. The translation is a bit rough in spots, but you won't have any problem getting his drift.

Independence Day

Thomas Jefferson wrote...

'We, therefore, the Representatives of the united States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.'

Now, 231 years later, we celebrate that declaration, after having created, interpreted, reinterpreted, amended (but not too much), fought for (a lot) and lived under the Constitution...one of the most remarkable documents in history. But as we learn continually...

Freedom Isn't Free!

Here's a link to a summary of the lives of the signers after the Declaration

Melanie Phillips’s Articles » Liberalism v Islamism

Melanie Phillips’s Articles » Liberalism v Islamism

I will write more later, but this piece by a British woman, Melanie Phillips, should be required reading for all Americans. It is right on the money. She says she's a liberal (in the historical sense of the word). In the U.S. she'd be branded a conservative. But any thinking person regardless of political persuasion, should contemplate what she writes to see if it doesn't ring true.