Category: Free Markets

The Declaration of Independence

G’Day!

Next week we will celebrate our nation’s birth! This is a time for both rejoicing and reflection on the reasons for, characteristics of, and principles that have made America the greatest country in the history of the world.

When this blog was established in February, it was and continues to be dedicated to the support, promotion, and preservation of the foundations upon which our Founding Fathers and our ancestors/countrymen risked and gave their lives to create our country. These basic principles are individual freedom, free markets, sound fiscal and monetary policy, economic growth, and limited government. In other words, it is dedicated to the principles for which this country fought the Revolutionary War and which were subsequently established in our Constitution and Bill of Rights.

Presented below is “The Declaration of Independence” as originally written. This document summarizes succinctly and completely the reasons for our Founding Fathers’ increasing dissatisfaction for a government that was remote, not representative, and not responsive to the needs and desires of the people being governed. I commend each of you to take a brief amount of time to reread and reflect on these reasons and the decision our former countrymen made to risk their lives to establish a new nation.

“The Declaration of Independence”

“When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. –That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed.

But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good.

He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them.

He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only.

He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures.

He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people.

He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within.

He has endeavoured to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands.

He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers.

He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries.

He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people, and eat out their substance.

He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures.

He has affected to render the Military independent of and superior to the Civil power.

He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation:

For quartering large bodies of armed troops among us:

For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States:

For cutting off our Trade with all parts of the world:

For imposing Taxes on us without our Consent:

For depriving us in many cases, of the benefits of Trial by Jury:

For transporting us beyond Seas to be tried for pretended offences

For abolishing the free System of English Laws in a neighbouring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies:

For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments:

For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever.

He has abdicated Government here, by declaring us out of his Protection and waging War against us.

He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people.

He is at this time transporting large Armies of foreign Mercenaries to compleat the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation.

He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands.

He has excited domestic insurrections amongst us, and has endeavoured to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

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.”

Please join me in celebrating the anniversary of the birth of our great nation!

The Old Guy PhD

 

Obama “packed” NLRB Continues Attack on Boeing & Free Markets!

G’Day!

The Obama Administration and the National Labor Relations Board (NLRB) continue their anti-business, anti-free market, and pro-union (not pro-labor) socialist attack on the Boeing Corporation and “Right-to-Work” States (see “Attack on American Business by Obama “packed” NLRB!”). The NLRB was originally intended to be an impartial arbiter of labor elections and management/labor disputes, if necessary. Under Obama, the NLRB has become a pro-union activist, anti-business organization and is now hurting job creation in America.

How did we reach the situation where the NRLB apparently defines only “union” jobs as “good” jobs and is willing to support union membership over job creation? During the March 2010 Congressional recess, Obama temporarily “packed” the NLRB by filling 2 of the vacant positions with Craig Becker and Mark Pearce without Senate confirmation. Subsequently Pearce and a Republican nominee, Brian Hayes, were confirmed by voice vote in the Senate in June 2010 but Becker was not. Becker, a union activist and former Associate General Counsel of the AFL-CIO & SEIU, remains a temporary voting board member until the end of 2011. Obama also appointed “Acting” General Counsel, Lafe Solomon, during the same Congressional recess. This currently gives the NLRB a majority of members supporting activist union causes and biases their decisions in favor of “union” jobs and against American business.

The International Association of Machinists & Aerospace Workers Union (IAMAWU) are attempting to stop Boeing, America’s #1 exporter, from final implementation of the firm’s new “Dreamliner” factory in Charleston, South Carolina. South Carolina is one of 22 “Right-to-Work” States, which don’t require (or prevent) hiring union workers and account for 7 of the top 10 and 10 of the top 15 in the “2010 Best States for Business” report. To date, Boeing has already invested approximately $1 billion and hired approximately 1000 workers in South Carolina. (Please note: the new workers in South Carolina independently decided to be non-union!) Boeing had $29 billion in exports in 2009 (nearly 2% of our country’s total), directly employs over 160,000 workers, and is indirectly responsible for approximately another 1.2 million jobs.

Boeing is not required to employ union workers in South Carolina or obtain union permission to build a new plant anywhere in the US or the World. However, the history of union disruptions and delays in Washington State could support moving their entire business operation out of Washington State. Boeing has not done this. Instead Boeing is hiring 2000-3000 new union workers in Washington State while adding the new plant in South Carolina. What Boeing has done is to diversify their operations by expanding into a State with a more favorable business environment and reducing their risk of union-motivated business interruptions. Expanding into South Carolina is much better than expanding into South Korea, or Mexico, or China as Boeing could have done. As indicated in the referenced article, this latest attack on business and free markets is another very, very dangerous anti-business precedent being attempted by the unions with NLRB reinforcement to increase both union & government central control over free market business decisions in America. Is anybody in the Obama Administration really interested in economic growth and private-sector job creation in this country?

Not surprisingly, President Obama has been totally silent on this blatantly inappropriate and probably unlawful move by the unions to force private firms to get union approval for the location of business operations throughout our country. This action has now reached the second level in the process where the “Acting” General Counsel, Lafe Solomon, and the NLRB will rule as to the validity of the union’s demands. Given Obama’s bypassing of the Senate confirmation process, the IAMAWU’s complaint is expected to be approved by the “temporary” pro-union membership in the NLRB.  The process will then move into the US court system for appeals, probably all the way to the US Supreme Court. This process may take years to resolve and leave Boeing and other US business with even greater operational uncertainty than already exists under the Obama Administration policies. This is another government and union-imposed dagger in the heart of job creation, economic growth, and the free market decision-making process for American businesses. In the interim, what will be the on-going status of the new Boeing plant, US vs. foreign expansion decisions by other companies, and the domestic job growth they could provide?

If this bogus union complaint is allowed to proceed, businesses in the 22 states with “Right-to-Work” laws are in jeopardy of having union membership forced on them and American businesses throughout our country will be clearly encouraged to locate future business operations and jobs overseas. This is likely to be another inappropriate and unnecessary administration-created “slow-motion train wreck” for the stalled economy. How can President Obama, who now claims “jobs” are his most important priority, permit this disaster in our country?

This is just another example that Obama and his policies are increasingly turning our nation into a centrally controlled socialist welfare state. These policies are not the foundation of freedoms upon which our country was created and which made America great. It’s time to take back our country as soon as possible and return to individual liberties, free markets, economic growth, and limited government.

The Old Guy PhD

Yes, We CAN Grow the Economy & Create Jobs

G’Day!

Obama and the Democrats have tried and failed with virtually every centrally controlled socialist alternative to stimulate the economy and create jobs. The only jobs they have really created are in government. The so-called recovery is the weakest in decades and may be about to “double dip”. Big collectivist government solutions have failed miserably (see “Big Government IS Our Problem!”). Obama and the Democrats only answer to this failure has been to blame it all on Bush. They claim that without their $4 trillion dollar taxpayer & debt funded stimulus, nationalization of businesses, increased healthcare regulations and spending, increased financial regulations, and extreme monetary easing by the Federal Reserve, it could be worse. The only thing that worked has been TARP and that was enacted under President Bush! It is time for government to stop regulating, remove the uncertainties facing business, get out of the way, and let the free market and capitalism work. You do not create jobs by taking wealth from those that generate it, siphon off government administration and oversight, and redistribute less of it back into the economy.

Economic growth and job creation is about free markets, minimum regulations, incentives, and opportunities in the private sector. Government doesn’t create jobs; the private sector creates jobs. Government also doesn’t create opportunities but it can discourage or prevent them (think energy policy) and it can and does distort the market through politically motivated subsidies or tax deductions for selected industries. If taxation and regulations are minimized to the level necessary to support the essential role of government as defined in our Constitution, business will take advantage of whatever opportunities are available in the marketplace and the economy will grow. Unfortunately, the Obama administration and the Democrats in Congress do not understand this. They apparently believe that a few “elites” (themselves) in government are smarter than the millions of consumers and business managers throughout the global economy. They have imposed on American business a climate of increasing regulatory restrictions, increasing healthcare costs, high business taxes, and increasing uncertainty as to what they will do next. In this centrally controlled environment, it is no surprise that American businesses are not currently hiring or investing in our country. The regulations and costs just in Obamacare and the Dodd-Frank Financial Regulations Act are particularly harmful and businesses are wisely waiting to see what the government will force on them next.

So what needs to be done to create jobs and get our economy back on track? At least six actions could and should to be taken: 1) Stop/Minimize non-essential regulations, 2) Have a business-friendly government, 3) Reduce tax rates, especially on business, through tax reform, 4) Enact an energy policy that encourages rather than discourages development of domestic sources of traditional energy, 5) Fix the fiscal and debt crises by cutting government spending, revising entitlements, and increasing tax revenues through tax reform, 6) Pass the three pending Free Trade bills and expand them to include other trading partners.

First, a moratorium on new regulations should be declared and all regulations associated with Obamacare and Dodd-Frank (especially the Consumer Protection Agency) halted until after the next election in 2012. The uncertainty overhang from these two bills alone is stifling hiring and investment by business. Ultimately, all regulations, both existing and new, should have a “sunset clause” that requires our government to formally reaffirm their need at pre-set intervals, perhaps every ten years. This would insure that outdated or unnecessary laws do not become permanent.

Second, President Obama needs to realize that his collectivist socialist policies don’t work and become truly business-friendly. It is no secret that the current administration is pro-union, pro-environmentalist, and anti-business as evidenced by numerous actions by himself and the Administration’s Departments and Agencies. The pro-union/anti-Constitution actions by the NLRB against Boeing in South Carolina (see “Attack on American Business by Obama “packed” NLRB!”) and the many actions of environmentalists against any form of energy development (drilling in the Gulf of Mexico, Shell Oil off the coast of Alaska (see “Obama Administration Attacks American Business Again!”) are not conducive to economic growth and job creation. This week the issue of an energy pipeline from Canada to Texas has also come under attack by environmentalists. These and other obviously pro-union and environmentally biased activities against businesses (and some States) should be halted and free markets given an opportunity to function.

Third, tax reform is essential to both economic growth and reduction in the deficit (see “Fiscal & Debt Crises – Tax Reform essential!”). As the referenced article indicates, there are several excellent proposals available and Republican presidential candidate, Tim Pawlenty, just added another this week. All are pro-growth and pro-job creation and all will work by providing incentives for private sector investment IN THIS COUNTRY, not abroad. Naturally, the Democrats, who believe in centralist government solutions and not in free markets, are generally opposed to all of them. Perhaps the easiest, most immediate, and most beneficial tax reform is to reduce (or eliminate) corporate tax rates to a level equal to or less than the major nations with whom we compete and simultaneously eliminate the politically motivated subsidies and deductions that distort the market. Currently US corporate taxes at 35% are highest in the developed world and actually represent double taxation on income, first at corporate level and again at personal level, when distributed as dividends. Additionally, the high US corporate tax rates discourage US based international companies from repatriating foreign profits back into the US because, if returned, they are taxed at the higher US tax rate. Our current tax policy encourages investment abroad and discourages repatriation of profits back into America. This is a job killer, not a job creator. Is our government crazy?

Fourth, enact a domestic energy policy that encourages rather than attacks development of domestic sources for traditional energy. This will create thousands of good jobs in our economy and reduce our dependence on foreign energy supply. For far too long we have allowed the environmentalists to dictate policy and stagnate domestic energy growth. Every rational person knows America will be dependent on fossil fuels for decades. Yes, development of alternative energy forms and technology is important but there is no chance “green energy” is going to be a replacement for traditional energy sources, including nuclear power, any time soon. It is madness to exclude active development of domestic fossil fuel sources and nuclear power from our alternatives just to satisfy a few environmentalists with unproven science and questionable computer projections. If “green energy” was a viable economic solution, we would not need a policy or subsidies to support it. Also, independent of the longer-term cost benefits from domestic production, the extremely high and increasing risk of supply from the foreign sources is a very dangerous national security concern. The Middle East is in turmoil and no one knows how it will turn out. Without domestic alternatives, American could find itself with an energy disaster, which could seriously endanger our economy. We must actively develop domestic energy to create jobs in America, sustain our economy, and reduce our global supply risk.

Fifth, resolve our short and long term deficit and debt crises. We must get government spending and the dual debt and deficit crises under control (see “Bowles & Simpson Have it Right!”, “Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!”, “Is Obama Really Serious about Debt Reduction?”). Our Government is too big, too oppressive, and exercises too much control over the American people and business. The current policies are sucking money from business and taxpayers, adding more public sector union layers of government control, stifling business growth, and reducing America’s ability to grow and prosper. As stated above, in a free market economy with protection for the freedom of individuals and businesses, the private sector creates jobs. Since his election, Obama has expanded the size and scope of government control far beyond the level any freedom-minded citizen would have imagined possible. Simultaneously, Obama has also increased our federal deficit by $4 trillion and increased our national Debt by approximately 40% to $14.3 trillion. Relative to GDP the size of government has increased from approximately 20% of GDP to over 25.5% of GDP, a 5% increase in the size of government relative to our economy in less than three years. Without correction, our deficit next year is expected to be another $1.6 trillion and in ten years our national debt will grow to a staggering $22 trillion! Does anyone think this makes sense? My article last week, “Is Our Government Broken? – Redux!”, provides more information on this critical issue.

Sixth, pass the Free Trade Agreements for South Korea, Columbia, and Panama. These proposals go back to the Bush Administration and should be easy to pass. I believe nearly everyone including the President and many Democrats support them. As usual, politics is holding them up. Free trade works and provides value through additional products and services at lower costs to all American consumers. Only unions are opposed to free trade because, in the short term, it may reduce union jobs in non-competitive industries. Over 200 years ago, Adam Smith established the unchallenged principle that the wealth of a nation was based on the goods and services available to its citizens. Free trade allows this to work for the benefit of all consumers. It’s time for the unions to realize this and support what’s good for the nation over what’s good for the union.

Yes, we CAN solve our problems, if we have the political will to do so. This country was founded and prospered on the principles of individual freedom, free markets, sound fiscal and monetary policy, and limited government. Let’s get back to our foundations and demand that our elected representatives in government get to work.

The Old Guy PhD

 

Is Our Government Broken? – Redux!

G’Day!

Nothing has really changed since my earlier post “Is Our Government Broken” on March 16. If anything, the situation is now worse and potentially more detrimental to our country’s international reputation and the growth of our economy. Obama and the Democrats appear to be determined to ignore the problem and demagogue any efforts by the Republicans to actually confront and attempt to resolve our fiscal and debt crises. While there will probably be an extension of the debt ceiling this summer, it will more than likely be another temporary fix and will just “kick the can” further down the road. As I have repeatedly said, this is madness and intolerable behavior for Congress and the President.

The good news is we now have three rational proposals available, any one of which would start to solve our problems. The bad news is that neither the President nor Congress is seriously considering any of them. The proposals available are: 1) the bipartisan Bowles-Simpson Debt Reduction Commission report, “The Moment of Truth”; 2) the Paul Ryan 2012 Budget Proposal, “The Path to Prosperity: Restoring the American Dream”; and 3) the recent Heritage Foundation Special Report, “Saving the American Dream: The Heritage Plan to Fix the Debt, Cut Spending, and Restore Prosperity”. The Bowles-Simpson report and The Heritage Foundation Special Report are fully comprehensive proposals dealing with all sectors of our economy, including desperately needed tax reform, entitlement reform, and cuts in discretionary government spending (including defense). The Bowles-Simpson report was approved by 61% of the members of the commission but for unexplainable reasons, has been ignored by the President and Congress. Paul Ryan’s proposal, which was passed by the House but rejected by Democrats in the Senate, is reasonably comprehensive but does not address Social Security and, in my opinion, does not adequately address Defense spending. In addition to the proposals above, the GAO report “Opportunities to Reduce Potential Duplication in Government Programs, Save Tax Dollars, and Enhance Revenue” has already identified unnecessary duplication, overlap, or fragmentation existing across our Federal Government totaling BILLIONS of dollars in ANNUAL SAVINGS. This is also a good place to start.

I have referred to each of these reports in several previous posts on this website and, for the sake of brevity, provide appropriate links below:

The first two (2) paragraphs in my initial post on this subject are still relevant:

“Yes, our government is currently broken and it needs to GET TO WORK! The events taking place in our national government and some states do not represent the principles of elected representative government upon which America was founded. We elected our officials to serve the needs of the people, not the desires of their political party, big business, or unions.”

“President Obama, both Democrat and Republican Congressional Representatives and Senators (with minor exceptions) are not currently working for the long-term benefit of America. Nearly all are posturing and working for what they perceive as the good of their political party and personal reelection. Citizens have common sense and know that we have fiscal and debt crises that are too large and unsustainable. We must get our State and Federal Governments in order.”

Our federal government is out of control and has grown to be too large, too self-oriented, and is not performing their duty to be responsible to the American people. To date the Democrats have proposed absolutely no specific plan to elevate our fiscal and debt crises (other than increase tax rates) and have not passed a budget in over 700 days! President Obama is also not exercising leadership in this crisis and, as indicated recently, is “leading from behind”. Our President is already in full campaign mode in preparation for the 2012 election (which can’t come soon enough!) and is engaged in travelling, golfing, and political speeches. Obama’s proposed 2012 budget is an embarrassment given the magnitude of our country’s ongoing financial problems and projects spending next year of another $3.7 trillion and an addition to the deficit of $1.6 trillion. Over the next 10 years the new Obama budget proposal is expected to produce a further cumulative deficit of $7.2 trillion, bringing our overall national debt to approximately $22 trillion. Again, this is madness and irresponsible and does not serve the interests of the American people!

Most of the Americans now realize “Big Government is Our Problem”! Let’s fix it and put our country back on a solid jobs and economic growth foundation! Adopt one or a combination of the above proposals and let’s get to work.

The Old Guy PhD

Obama Administration Attacks American Business Again!

G’Day!

In just the last few days, the Obama Administration has directly or indirectly initiated four (see below) separate anti-business actions against American corporations, which interfere with our national economic growth and prosperity. These actions are similar to strong-arm tactics initially used by authoritarian regimes to increase central government control and to decrease individual and economic freedoms. As I said in Tuesday’s OpEd, “Attack on American Business by Obama “packed” NLRB!”, this is a very, very dangerous precedent. The policies of President Obama do not represent the American free market, limited government culture I know and admire. Specifically, the actions taken in the last week are:

1) The National Labor Relations Board (NLRB) has agreed with a union complaint against Boeing and South Carolina to prevent Boeing from opening the nearly completed expansion plant in South Carolina for the 787 Dreamliner.

2) The Environmental Protection Agency (EPA) under Lisa Jackson has stopped a Department of the Interior’s previously approved Shell Oil request to drill and develop a 27 billion barrel oil reserve in the Arctic Ocean off Alaska.

3) The Health and Human Services Department (HHS) under Kathleen Sebelius has demanded the firing of the CEO of Forest Labs, a privately owned firm, under the coercive threat of refusing to do government business with the firm, if the CEO is not replaced.

4) The NLRB (again) is suing Arizona and South Dakota to invalidate a law requiring “secret ballots” for union recognition in those States. Two (2) other States have also passed similar laws. (How silly of me, I thought secret ballots were a fundamental part of our democratic freedoms.)

All of these actions represent intimidation or possibly even extortion by these government departments, agencies, and boards to bully privately owned businesses and even States of the Union to conform to the wishes of the current Administration. This is an unprecedented use of governmental administrative power in peacetime and is not in keeping with the freedoms we have enjoyed in this country for over two hundred (200) years. If this were happening in another country, we might call it “creeping fascism”. I sincerely hope this is not Obama’s intent.

Equally disturbing is the trend by the Obama Administration to bypass Congress and increasingly use administrative force, not legislation, to control and implement the Administration’s agenda and greater centralization of Presidential power. Evident in the actions above is promoting unions over business, environment over energy development, and intimidation of private businesses into conforming to healthcare and other administrative objectives. This centralization and probable misuse of administrative power is not good for our democracy or our nation.

The EPA’s frivolous and damaging action against Shell Oil is worthy of additional comment because of the importance of energy in our economy. This is another questionable environmental complaint by the EPA that forces Shell to abort its approved exploration and development of domestic oil resources in the Arctic Ocean off Alaska. The court ruling on the EPA claim is that the air quality of the remote village of Kaktovik, with less than 250 people and 70 miles away from the drilling site, will be “close to” the air quality standard (not above) based on the greenhouse gas emissions from an icebreaker servicing the site. Also claimed is the site is “too close” to ANWR (but not inside it) and wildlife will be endangered.

This action by the EPA comes at a time when higher domestic oil production is critical to reducing our dependence on vitally necessary oil from questionable foreign sources. The US currently consumes 18.8 million barrels of petroleum per day (approximately 6.8 billion/year) of which approximately 50% is imported. The proven US oil reserves are only 19.1 billion barrels. The Shell project in the Arctic Ocean was expected to add 27 billion barrels and 74 trillion cubic feet of natural gas of new US reserves, which would more than double the current level of US petroleum reserves! Shell has already invested almost $4 billion and over 5 years in the project, $2.2 billion for the leases alone.

This is another deliberate anti-business action by the Obama Administration, this time the EPA, and further stifles economic development, domestic oil production, American job creation, and encourages American businesses to move offshore. We do not need an authoritarian government that dictates to its people and its businesses what they can do, where they can do it, and how they can do it. If this policy is continued, it will restrict economic growth, innovation, job creation, and our personal liberties; AND it will further pressure our American enterprises to move to more business-friendly nations. I believe it was Thomas Jefferson who said, “That government is best which governs least.” This is good advice and should be remembered at the next election.

It’s time to take back our country and return to Constitutionally protected freedoms, free markets, economic growth, and limited government. Let’s get to work!

The Old Guy PhD

 

Attack on American Business by Obama “packed” NLRB!

G’Day!

The latest union-driven government-supported attack on business and free markets is against Boeing and South Carolina. This is another very, very dangerous anti-business precedent being attempted by the unions with National Labor Relations Board (NLRB) reinforcement, which would increase both union & government central control over free market business decisions.

After 4 crippling union strikes in Washington State in the last 2 decades (with 2 nearly back-to-back) and the most recent in 2008 costing Boeing an estimated loss of over $5 billion in revenue, Boeing decided to build an expansion plant for the 787 Dreamliner in South Carolina. Twenty-two (22) States, including South Carolina, are “Right to Work States” which don’t require (or prevent) hiring union workers. The Boeing plant in South Carolina is nearly complete and approximately 1000 workers have already been hired with 1000s more to follow (many from the soon to be closed NASA/Kennedy Space Center). Interestingly the new Boeing plant, if it is allowed to open in South Carolina, will be 100% powered by a combination of renewable energies.

The International Association of Machinists & Aerospace Workers at Boeing in Washington State filed a complaint with the NLRB to prevent Boeing from completing the new plant in South Carolina with non-union workers (as permitted by law). The NLRB, with a majority of union-supporting members has agreed with the Washington State-based union (big surprise). Obama temporarily packed the NLRB during the March 2010 Congressional recess by filling 2 of the vacant positions with Craig Becker and Mark Pearce without Senate confirmation. Subsequently Pearce and a Republican nominee, Brian Hayes, were confirmed by voice vote in the Senate in June 2010 but Becker was not. Becker, union activist and former Associate General Counsel of the AFL-CIO & SEIU, remains a temporary voting board member until the end of 2011. This currently gives the NLRB a majority of members supporting union causes and biases their decisions in favor of labor and against American business. Please note, the Democrat-controlled Senate prevented former President Bush from filling the 3 vacant appointments to the NLRB in 2007-08.

This will likely turn into another expensive and delaying lawsuit which, if unions and the NLRB win, will force businesses to get union or government approval on where and how to locate and operate their business operations within the US. This would be another potential disaster for capitalism and freedom in our economy and further encourages American businesses to move offshore. At a minimum it is a threat to all expanding businesses and the twenty-two (22) States that have “Right to Work Laws”, which were enacted to encourage competitive business operations and free markets. Timing could not be worse as we are just coming out of a recession and need job growth. Boeing has already committed significant time and money to the plant, which could be lost, and improved global competitiveness is crucial to the future success of American business. Is anybody in the Obama Administration really interested in economic growth and private-sector job creation?

Obama and his policies are increasingly turning our nation into a centrally controlled socialist welfare state. These policies are not the foundation upon which our country was created and which made America great.

It’s time to take back our country as soon as possible and return to individual liberties, free markets, economic growth, and limited government.

The Old Guy PhD

 

Is Obama Really Serious about Debt Reduction?

G’Day!

The answer is apparently “NO”, based on the 1st & 2nd Obama budget proposals for 2012 and the Democrats tooth-and-nail fight before agreeing to a miniscule and questionable $38 billion (a mere 3-4 days) in spending cuts this year from a current projected deficit of $1.7 trillion for 2011! However, they are serious about political posturing, fear mongering, and demagoguery against Paul Ryan and the Republicans for even proposing an earnest plan to resolve the crisis. As indicated last week in “Obama Ignores Bowles-Simpson Debt Reduction Commission – AGAIN!”, their answer is SPEND, SPEND, SPEND and TAX the success of the real investors and hard-working small businesses who are the genuine creators of economic growth, job creation, and wealth in our country. Their only solution is to tax the “Rich” when approximately 45% of the households pay no federal income taxes at all and the “Rich” (Top 2%, incomes over $250,000) already pay over 40% of the total! Tax reform is necessary but Obama’s proposals are neither the serious leadership our country needs nor even a nod of recognition for the fiscal and debt crises we face.

The Fed can’t print enough money to solve this problem without major devaluation of our currency and significant increases in inflation and interest rates. History has repeatedly shown that excessive government spending financed by debt combined with extreme increases in money supply usually results in a collapsed economy and crisis in government. Many other nations have tried this and failed miserably. For example, France tried this before and during the French Revolution and it ultimately led to the collapse of their currency, their economy, the failure of their government, and the rise of Napoleon as dictator. Germany tried this after WWI and it lead to the collapse of their currency, their economy, the failure of their government, and the rise of Hitler as dictator. For more information about financial crises see, “This Time is Different: Eight Centuries of Financial Folly”, by Carmen M. Reinhart & Kenneth S. Rogoff, who analyze financial crises in 66 countries in their 2009 book. Regarding “This Time is Different” they conclude, “It almost never is.”

America is not immune to the workings of economic forces and cannot continue as a great nation if we do not put our bloated and inefficient government spending on a sound fiscal path, cap government spending as a percentage of GDP, and appropriately modify (not eliminate) our currently unsustainable entitlement and social programs for long-term viability. Recent history suggests the sustainable level for federal government spending has been approximately 20% of GDP. Federal government spending was 20.7% of GDP in 2008, 23.8% in 2010, and is expected to be over 25.5% in the current year (the highest level in history, other than WWII). This is a +5% increase in the size of our federal government in the first 2-3 years of the Obama Administration! This is madness and must be corrected!

There is no question that many (but not all) government social programs are desirable; they are just not affordable or consistent with a vibrant, innovative, expanding economy, and rising standard of living for the American people. As I said last week, “We cannot continue as a great nation if we base economic policies on the failed socialistic principles of taking from those who work hard and succeed and redistributing their earnings to those who don’t.” Most other developed nations, including Russia, have learned the incentives and benefits of free market capitalism and our government needs to relearn them as well.

If President Obama was sincere about debt reduction, he would be listening to and acting on the recommendations from the bipartisan Debt Reduction Commission he established. The Bowles-Simpson Co-Chairs’ Proposal outlines how to achieve results through comprehensive and specific actions to improve revenues through tax reform, to reduce government discretionary spending including defense, and to reduce entitlement programs through healthcare and social security reform. All of these reforms: taxation, discretionary spending, entitlements for healthcare and social security are essential to a comprehensive solution for our country’s problems and, if we are to succeed, ALL must be addressed.

Our fiscal and debt problems are correctable if our government seriously addresses the needs of the country and not their political desires for reelection. If Obama, Democrats, and Republicans can’t agree on comprehensive legislation to reduce government spending and bring the size of government back to sustainable levels consistent with a growth economy, our country faces a potential sovereign debt crisis similar to those described in the book by Reinhart & Rogoff referenced above. I agree with Standard & Poor’s downgrading of the “outlook” for US Debt based on the political turmoil in our Government. The outlook for a government solution before the 2012 election is not good and I don’t believe Obama and the Democrats want a real solution. Currently, it appears Obama and the Democrats believe the American people are not intelligent enough to see the need for real government spending reform and are too self-interested to revise the social programs to sustainable levels. I do not agree with this view. I believe the American people are intelligent and don’t want to leave to future generations of Americans a damaged economy with an authoritarian bureaucratic government controlling our lives.

In my first post on this website, “Big Government IS Our Problem!”, I described in more detail the current Administration’s trend toward big government collectivism and the dangerous omens it portends for the future of our lives and our nation. In the 2 months since that posting, the situation has become worse and the socialist agenda of our President and the Democrats has become very clear. They do not appear to be serious about debt reduction or reducing government spending. If we are to have a successful and prosperous country in the future, we must take back our country and reestablish the principles of limited government, free markets, individual liberties, and sound fiscal & monetary policies. Get “Big Brother” out of the way and off our backs, reform taxation & spending, and our economy will recover faster and the future of our nation will be assured.

The Old Guy PhD

 

Obama Ignores Bowles-Simpson Debt Reduction Commission – Again!

G’Day!

Spend and Tax! Tax and Spend! Spend, Spend, Spend! This is the clearly defined policy framework outlined in Wednesday’s political speech by President Barack Hussein Obama. As noted in a previous post, “Big Government IS Our Problem!”. Unless we replace Obama and the Senate Democrats in 2012, big government, reduced personal freedoms, and unsustainable economic policies will continue to be with us for the foreseeable future. Why does the President continue to reject the bipartisan comprehensive proposal by the Debt Reduction Commission, (“Bowles & Simpson have It Right!”)? Can’t Obama and the Democrats do math?

In President Obama’s speech presenting his 2nd new 2012 budget proposal in two months, he again, as usual, failed to exercise leadership by trashing the serious Republican debt-reduction budget plan of Paul Ryan, and by again refusing to incorporate important recommendations from the Debt Reduction Commission’s proposal. The President’s theme was to incorrectly accuse Republicans of taking money from Senior Citizens and Medicare to provide tax cuts for the “wealthy”. Obama knows better and, as President, should be ashamed of his attempt to mislead the American people. The Bowles-Simpson Debt Reduction Commission’s proposal is excellent and the President, the Democrats, and the Republicans should immediately and seriously pursue this comprehensive bipartisan recommendation, which was approved by a majority (61%) of the commission members. Our economic, fiscal, and debt problems cannot be solved by half-hearted and halfway measures. Everything must be on the table, considered, and acted on through an overall, thoughtful, bipartisan solution that benefits the American people not the political ambitions of the politicians.

In this regard, Obama’s speech was disappointing and pure politics, apparently intended to support his announcement to rerun for President in 2012 (hopefully unsuccessfully). The speech essentially ignored the Debt Reduction Commission’s recommendations and lacked real substance or specifics. In response to the Republican’s budget, Obama did propose to reduce the fiscal deficit from his 1st 2012 budget by promising to raise taxes on the successful job-creators in our economy – not a good idea for growth and innovation if you understand economics. The speech primarily engaged in inaccurate political demagoguery aimed at Republican Paul Ryan’s 2012 budget proposal. VP Joe Biden was so impressed that he dozed off during the President’s delivery! The prospect of either the 1st or 2nd Obama 2012 budget proposal is potentially the same: a larger, bankrupt nanny-state in a slow-growth economy with lower than possible living standards, and a devalued currency with entitlements for non-producers supported by the few motivated and successful business managers, investors, and job-creators. Obama’s plan is an arrow aimed at the heart of entrepreneurs, innovators, and commerce.

In 2-3 short years Obama has increased government spending from an annual rate of $2.9 trillion in 2008 to an expected $3.8 trillion in 2011, increased our budget deficits by over $4 trillion and increased our National Debt by approximately 40% to nearly $14.3 trillion (over $1 trillion owed to China). In addition to this massive increase in the size and scope of government (which Obama now wants to “lock in”, not reverse), he has reduced our individual freedoms in healthcare choices (Obamacare), increased government control over our financial and consumer markets (Financial Regulation Bill including the powerful new Consumer Financial Protection Bureau), taken over private companies, halted domestic oil development, and expanded unsustainable fiscal and monetary policies. Obama is eroding virtually all the policies in which I personally believe and which made our country great, (see “Is Obama Our Worst President or Just the Weakest?”). How did we ever allow ourselves to believe his campaign rhetoric and fail to see through his lack of experience, leadership, and knowledge of the workings of an economy and foreign relations?

What is now quite clear is Obama’s personal commitment to increasing an already bloated and inefficient federal government and expanding bureaucratic control over our lives and our economy. He is attempting to change our entrepreneurial spirit of independence and freedom into a socialist state of citizens dependent on government handouts for our very survival. I would not be totally surprised if Obama adopted Herbert Hoover’s campaign slogan, “A chicken in every pot and a car in every garage”, with this addition: “Paid for by the US Government”.

We cannot continue as a great nation if we base economic policies on the failed socialistic principles of taking from those who work hard and succeed and redistributing their earnings to those who don’t. Even Russia learned that Karl Marx was wrong when he said, “From each, according to his ability; to each, according to his need.” History has shown that socialist policies, if pursued to their ultimate end, result in reduced individual incentive, slower economic growth, lower living standards, and domination by state bureaucrats over the lives of people, (see Nobel Prize Winner in Economics, “The Road to Serfdom”, F. A. Hayek). Obama and the Democrats do not appear to have learned this yet. They appear to have the elitist belief that government bureaucrats can make better decisions for the people than people can make for themselves. Capitalism and democracy aren’t perfect but they are far better than a government-controlled command economy and authoritarianism.

The incentives of capitalism combined with free markets, individual freedoms, and limited government are the best ways to achieve economic growth, prosperity, improved living standards, AND to remain competitive in the global economy. Our US Constitution supposedly protects these fundamental principles but they appear to be increasingly in jeopardy through the actions of our current government. Let’s stop this decay, get back to our traditional foundations, and correct the trend as soon as possible.

The Old Guy PhD

 

Is Obama Our Worst President or Just the Weakest?

G’Day!

While I did not vote for Obama, I did have great hope for his presidency. Even though I believed him to be too inexperienced and unqualified to be President, his slogan, “Yes we can!” combined with his soaring rhetoric was inspiring and motivating. Unfortunately, my initial fears have been realized. Perhaps Anna Pukas said it best in her recent article, “Barack Obama: The Weakest President in History?” when she described him as “INEFFECTUAL, invisible, unable to honour pledges and now blamed for letting Gaddafi off the hook. Why Obama’s gone from ‘Yes we can’ to ‘Er, maybe we shouldn’t…” To Anna Pukas’ observations, I would add aloof, elitist, and indecisive.

It is actually too early to tell if the outcomes from the legislation of the Obama government will make him our worst President but current and future implications for the massive increase in big government socialism, continuing fiscal catastrophe, unsustainable levels of debt, and diminished international respect for the United States around the world, clearly make him a contender. More worrying is the apparent weakness and inability of President Obama to accept leadership and responsibility for the direction of our country. His ambivalence as a leader and his priority with the “perks” instead of the responsibilities of his office are unprecedented in our current time of crisis. In issue after issue he has withdrawn from the actual decision-making process and, during his first two years in office, deferred to Congress or leaders in other countries to set our government’s goals and priorities. Besides golf (60+ times since taking office, I’m retired and haven’t been able to play that much), political speeches, extensive travel, and a totally unearned Nobel Peace Prize, he has largely been an observer on domestic and international issues. Professor Peter Morici recently indicated on national television, Obama appears to be more interested in “Presidential Tourism” than in dealing with the critical issues facing our nation. Virtually all Presidents in at least the last century have been strong leaders. Some of their actions have been right and some have been wrong but they were willing to take responsibility and actually lead our country. Perhaps Harry Truman expressed it best when he said, “The Buck Stops Here!” With Obama, “The Buck Starts Here!”

We were warned by Hillary Clinton during the Democratic Primary Campaign that Obama, while in the Illinois legislature, declined to take a position on issues by voting “Present” (neither yes nor no) 129 times. While in his partial term in the US Senate, he missed roll call 314 times (24%). These should have been indications of his personal lack of commitment and inability to take a position on legislation. Since becoming President, Obama has essentially been a pitchman for the Democrats, notably the unions, and has punted important domestic decisions (Stimulus, Healthcare, Financial Reform, Federal Budgets, and National Debt) to the Democratically-controlled House and Senate and international decisions to the State Department and foreign leaders. With foreign leaders he has been persistently weak and apologetic concerning America’s historical role in fighting for and defending freedom, democracy and US international interests. He has consistently been indecisive and ambivalent in dealing with China, Russia, Iran, the Middle East, and now Libya.

In responding to the current Libyan crisis, he has dithered and deferred to the leadership of Britain, France, and the Arab League and has now bypassed Congress (perhaps illegally) and subordinated US national interests to the UN Security Council for the current military actions. All this while he and his entire family engaged in “Presidential Tourism” to South and Central America. At the time of this writing, our US policy on Libya is a confused mess. Obama has no clear long-term objectives and he has still not addressed the nation or properly communicated to Congress a coherent government plan. Astonishingly, Obama’s currently stated goal for Libya is to WITHDRAW US military authority over the actions in Libya, pass command to “somebody else”, and voluntarily abandon American leadership in a time of international crisis. He appears to be willing to give command and control over our military to unknown foreign powers “to be determined”! This is another example of Obama’s avoidance of responsibility and lack of strength. Unfortunately, his weakness as a leader and lack of belief in the greatness, strength, and historical contribution of America in the world, has undermined our international stature in the world and created a power vacuum that other nations are trying to fill. Even our long-time allies have been embarrassed by his deference and obeisance to the leaders of problem nations. Remember Obama “bowing” to the King of Saudi Arabia and cancelling President Bush’s Anti-ballistic-missile Defense Shield for Central Europe when challenged by Russia. These are not the actions of the President of the World’s greatest nation.

I don’t know if Obama will turn out to be our worst President but he doesn’t look good and the future of our country is in peril on many fronts, especially our fiscal and debt crises and our foreign policy. I do believe that what little political conviction he has is directed toward expanding socialist government, reducing personal freedoms, and exercising more control over our lives (see “Big Government IS Our Problem!”). This is not good! I am also very sorry to say that I believe that Obama IS our weakest President in at least the last century and has not demonstrated the personal strength to handle the conflicts and confrontations that are a necessary consequence of the domestic and international issues confronting America. This is very unfortunate given the variety of crises we face. Fortunately, the November elections gave control of the House of Representatives to the Republicans. This, at minimum, will halt the growth of collectivist government for the next two years.

Our nation was founded on constitutionally protected principles of individual freedoms, free markets, and limited government. Let’s stop the rot, get back to our roots, and reverse the trend as soon as possible.

The Old Guy PhD

 

Are Public-Sector Unions Destroying Democratic Government?

G’Day!

The fiscal and debt crisis facing many of the 50 states and the bankruptcy of General Motors have highlighted the critical role public and private-sector unions have in our ability to compete globally and in the functioning and long term solvency of our state and federal governments. The demonstrations in Wisconsin and similar events in Indiana, Rhode Island, New Jersey, and Ohio, not to mention the budget crisis in New York and California, are emphasizing the magnitude of the controversy and crisis facing our governments over well-intended but overly generous and unsupportable public-sector union benefit packages. Unlike the private sector, public-sector workers are paid by taxpayers, currently receive benefits and wages that are above the average paid for similar work in the private sector, and have greater job security. Without significant change and fiscal sanity restored, many states will ultimately face one or a combination of undesirable choices: raising taxes on business and/or the general population, cutting services, reducing salaries and benefits of public-sector workers, or declaring bankruptcy and starting over.

Originating in Europe, unions transferred to the USA in the 19th and especially the 20th century.  They began in the private sector with legitimate goals of fair pay, better & safer working conditions, and fair bargaining for labor contracts. In the private sector unions work because in a competitive free-market there is an objective economic outcome, which, when successful, maintains profit for the owners and appropriate wages and working conditions for the employees. If owners are too greedy, good employees will leave and the firm will fail. If employees are too greedy, costs will be uncompetitive and the firm will fail. Under either situation both owners and employees will lose, so both parties have incentive to balance their demands so that the firm succeeds. It was the excessive bargaining power of the unions combined with increasing competition that led to many private U.S. firms’ bankruptcies (think General Motors and the Airlines) and that ultimately led to a decline in private-sector unions. Private-sector union membership peaked in 1953 at 25.5% of the labor force and has declined steadily afterwards. I support private-sector unions in a competitive, free-market economy as long as they are “open shop”, represent “right to work” conditions, have “secret balloting” for elections, and are not biased by legislation.

Public-sector unions did not exist until the late 1950s, when, Robert Wagner, Mayor of New York City, in an appeal for votes (an omen of things to come), signed an executive order authorizing the city workers to unionize. Other Democrat-led local and state governments followed his lead and President Kennedy, also by executive order, authorized federal workers to form unions in 1962. Prior to this, public-sector workers were expected to earn less than private-sector workers in return for job security and service to the public. Even union leaders recognized at that time that collective bargaining by government workers was biased in favor of workers, unfair, and inappropriate.

Public-sector unions do not represent the conditions necessary for fair and balanced negotiations with elected government representatives. Government jobs do not have a competitive market (governments and essential services don’t compete), don’t have an objective economic outcome that forces compromise (governments don’t go bankrupt, yet), and the taxpayer owners are represented by temporary agents who negotiate for wages and benefits with workers who vote them into office. The contracts from these negotiations endure permanently into the future long after the elected politicians negotiating for the taxpayers have departed. There is clear bias when short-term reelection partially depends on the votes of these employees. This process is further biased where public-sector unions are large and have full  “Collective Bargaining” rights, as is currently the case in 26 states.

Because wages and benefits to public-sector workers come from taxpayers, ALL taxpayers in total are funding these contracts AND union dues. A portion of these union dues is recycled into the election and lobbying process as political support for union favored candidates and laws (like the current “Employee Free Choice Act”, which is union biased and should be killed). In 2007-08 unions spent $165 million on elections and proposed legislation. Andy Stern of the SEIU bragged that the union spent $60 million to get Obama elected. Not surprisingly, the majority of these recycled union funds go to support the Democratic Party and no wonder that Democratic Senators in Wisconsin and Indiana have fled their states and elected responsibilities in support of union protests against proposed limits on union power and benefits.

Do the public-sector unions really have a legitimate complaint? Are they underpaid? Are their benefits unfair? Is their job security worse than the private sector? The obvious answer to all these questions is, “Hell No!” The US Bureau of Labor Statistics for 2009 indicates that unionized public-sector workers have a 31% advantage in wages and a 68% advantage in benefits over nonunionized workers (with a much larger advantage in defined-benefit pensions and health insurance) and their job security is almost assured, especially in education. Public-sector union members generally contribute little or nothing for their healthcare and pensions and in many cases can retire at a significantly earlier age than private sector workers. And remember, taxpayers are the source of their wages and benefits. I ask the questions, “Does the service and value provided by public-sector workers justify their higher-level of pay and benefits over the private sector?” If not, why are we, the taxpayers, paying it?

The chart above represents the trend in public vs. private-sector union workers since 1973. It illustrates that union membership in the private sector has declined by over 50% from approximately 15 million to 7.1 million to approximately 8% of the workforce. During this period public-sector membership has increased by over 150% from approximately 3 million to 7.6 million and represents more union members than the competitive private sector for the first time in history. This growth in government workers and spending must stop and proper priorities set on what we can fiscally afford as a nation. Our government cannot do every “desirable” project. Endless growth in State and Federal Governments promoted by unions is increasing regulations, increasing the size and cost of government, stifling economic growth and innovation, and restricting private sector job expansion. We, the people not the government, must accept primary responsibility for our families, our neighborhoods, our country, and ourselves.

So what should we do? First and most important, where it still exists, collective bargaining for the public sector, which should have never been permitted, should be ended, the proper balance between taxpayers and government workers restored, and its undemocratic and prejudiced influence in the electoral and negotiating process halted. Second, effective immediately, all new hires into public-sector employment should have a new retirement age consistent with those in the private sector, revised pension and healthcare contracts in which they must contribute appropriately to their health and pension plans, pension plans that are based on defined-contribution not defined-benefit, wages based on performance not longevity, and where it exists, “tenure” should be abolished. Third, existing retirement contracts for long-term government employees approaching retirement age (to be determined but within approximately 10 years of retirement) should be honored, but they should be required to begin contributing to their healthcare and pension plans as above. Fourth, employees with longer than approximately 10 years to retirement age should also begin contributing and have their retirement phased-in as appropriate to match the new retirement age.

These major recommendations are admittedly oversimplified for brevity and will differ by State and between State and Federal workers depending on existing contracts. However, they will significantly reduce the current and long-term fiscal crises facing our state and federal governments. Other non-union related issues and recommendations will be the subjects of a future post.

The near-monopoly stranglehold public-sector unions have over large portions of our state and federal governments must be broken or the unsustainable budget and debt problems will continue to erode and potentially destroy our democratic institutions of government. Public-sector workers must be compensated like private sector workers based on value-added.

It’s time to curb public-sector unions, return power to the taxpayers, and restore fiscal sanity to our government.

The Old Guy PhD