Sunday, October 30, 2005

Advice to the Tax Reform Commission

There are two actions that would reduce the cost of tax preparation and auditing and make the personal income tax more equitable while changing the code very little. This is not to say that other changes are not desirable, but these changes can be made easily without upsetting almost anyone, and therefore are a good place to start.

The table below compiled from IRS data shows that 53 million taxpayers with incomes less that $22,000 could be removed from the tax rolls, reducing tax revenue by only $13 billion out $748 billion. Seven billion of this loss could be recouped by closing the loopholes that people making over ten million a year use to lower their tax rate four points below that of people making half a million. The savings in preparation and auditing costs could easily make up the rest.

Anyone making $22000 or less can hardly meet their everyday expense to hold a job and pay for health care. They shouldn’t have to pay income taxes if they don’t have any income after expenses, when corporations pay taxes only on their net income.

The first thing the commission and the Congress should do is take anyone who is making less than $22,000 a year off the tax rolls and close the loopholes for the multimillionaires so their rates are in line with others making less.

Tuesday, October 18, 2005

A Religious Outlook I Respect

Although I’ve been pretty hard on religion when it inserts itself into government and policy making, there are some religious leaders I respect, even though I think they are lost in fantasyland. Dr. Richard Land is one of them. He is one of the few evangelicals who have spoken out against Bush’s touting of her religion as one of the reasons for picking Harriet Miers as his Supreme Court nominee. Land is a true believer not only in Christianity but in the philosophy that judges and justices should set aside their personal beliefs and decide cases on the basis of existing law. This is what some conservatives believe, but not all, by any stretch. There are many who view getting a Christian on the court as a way to get Christianity back in government, i. e. prayer in schools, creationism in the classroom, gays on the sidelines, stem cells, abortion and contraceptives out of medicine, etc. Land is not one of them.

Another attitude I can respect is what Land sees as one of the virtues on Christianity. He believes that if Christianity were accepted by all, we would have a much more ordered society with fewer births out of wedlock, less crime, more attention to the plight of the less endowed, etc. And, he may be right for some segment of society, but not for all. This belief assumes that all people need religion to live productive, law abiding, moral lives. This I cannot accept because it has been proven wrong over and over again. There are many people with no religious belief that live such lives. Religion limits the freedom and liberty of such people. And anchoring a society on rules and principles devised thousands of years ago limits its adaptation to changing conditions and acquisition of new knowledge.

An appropriate compromise would be to take advantage of religion by allowing those who can profit from it to profess it freely, but also allow those who don’t to go their own way without discrimination or any requirement to participate in religious activity. In any case it should be a personal choice, not something that should be implemented in law or universally applied.

Monday, October 17, 2005

Elitism, Enlightenment, Tradition and Our Future

Michael Barone of U. S. News and World Report has written an article, Spurning America, which I hope will be the opening salvo of a discussion of an important issue in American politics, namely, the role of tradition and religion verses adaptation in a modern society. The following is my response.

In the article, he chastises the liberal elites for a world of sins, the usual saw in attacking the left. So let’s first clarify what it means to be “elite”.

Elitism

Elitism involves setting oneself apart and above the rest of society on the basis of what may be just a perceived superiority in the eye of the exhibitor of this behavior. Elitism is to be distinguished from enlightenment which is the true attainment of a state of knowledge that others might not have acquired in a particular field or discipline.

There are elitists of all political stripes, although liberals are most often accused of elitism, possibly because they reside in urban trend setting communities like the Northeast or West Coast cities, or because they have advanced degrees and prominent positions in academia. But, there is also a business elite of CEOs, investment bankers, and free marketers who conceive of themselves holding a unique knowledge of how economic systems work and how to scratch their way to the top of the economic pyramid without being too concerned about what happens to those who don’t achieve their prominence, or who think there is more to the health of a country than just economics. And then there are the literary and cultural elite who reside in the press or political think tanks pontificating on whatever they are paid to pontificate on. And finally, there are the political elites who have achieved high positions in government, possibly only through clever association with the aforementioned elites who provide the necessary campaign funds or writing and promotional skills to get them elected.

Enlightenment

What may appear to some as elitism, may actually be enlightenment, if the individual exhibiting it has achieved a state of knowledge through study, experience, or travel that gives them a better perspective to judge the value of a theory, plan, or action. Someone may appear as an internationalist elitist if he cites examples from foreign sources attained through study or travel that the observer has not attained through comparable experience.

Someone unfamiliar with governance or economics may rely more on the personality of someone, which mirrors his own, rather than the documented history of a person’s actions if he is not informed of them, or if he does not understand how the experience relates to the requirements of his position.

Someone without a scientific background may equate the scientific method with any other theory or myth regarding an observed behavior or phenomena.

Someone growing up in a rural environment may have an extensive knowledge of the land, conservation and natural phenomena that someone raised or living in an urban environment has not acquired. Whereas, someone in an urban environment may have experienced a wide range of social behavior from a wide range of different cultures and ethnicities, while the rural resident may have experienced a relatively monolithic culture.

These differences in learning or experience, when viewed from the opposite viewpoint may appear as elitism when they are actually attributable to enlightenment through wider experience or study.

Tradition and Religion

Now let’s examine the makeup of those who most value tradition and religion as opposed to those who may be accused of taking an internationalist, and possibly more secular political stance. Here we might look at why some people prefer “my country right or wrong”, support their leaders, fly the flag, put patriotic stickers on their automobiles, etc. whereas others seem to protest against their government’s actions and cite examples from abroad rather than taking the former approach.

History is littered with empires that faded because they clung to what worked in the past instead of adapting to the present and future, taking account of the rapid growth of knowledge acquired over the years.

It used to be tradition in this country to enslave people because it seemed to work economically, and there was an “elite” attitude that these people were better off enslaved because of their lacking an ability to make their way on their own. Fortunately, we finally got rid of that tradition after discovering these people actually weren’t much different from their enslavers and could function pretty well on their own.

At one time we considered women lacking the necessary skills, or possibly due to their domestic responsibilities, the time and ability to participate in the electoral process or hold some jobs that required the “manly” skills. We have subsequently found through experience and learning that women do indeed have the skills and mental capacity to do almost all things previously done only by men, and fortunately have abandoned that tradition as well.

Now it has been a couple thousand years since our religions sprung to life at a time when there was essentially no science and where religion provided essentially all the answers to the unanswerable questions of the time. And, answers to many questions are required for an ordered society and for peace of mind for the individual, to give people a sense of purpose and comfort in times of stress or despondency.

Since then, we have passed these traditions on to our descendents, from an early age, as principles which have served us well and which they should adopt to get along in the world. But, we have also learned much since then about how the world works and what is required for an ordered society. We have discovered individual liberty, human rights, democracy, political institutions, etc. and we now we rely much less on the oracles or the priesthood to give us guidance on the right way to live.

At some point we may want to ask ourselves how much we want to rely on the knowledge we have acquired over these many centuries and how much we want to rely on the ancient religious faiths we have adopted. We still may enjoy our religious community, the comfort we feel from our religion in time of conflict or loss, and ceremonial aspects of celebrating religious holidays, etc. But, we should consider the degree to which we want our religious faith to dictate our everyday decisions in raising our children, pursuing our careers, and governing our society.

The Future

Our success as a country in the future will depend on our further enlightenment and recognizing that we can’t run in place, resting on our past success and traditions to see us through a rapidly changing future. It will require the less informed to become more informed. It will require that we not rely on our tradition of American exceptionalism, but recognize the other countries and civilizations may have discovered ways of prospering and getting along that we have been too isolated to appreciate fully. It will mean cooperation, not just nationwide but worldwide. We can continue to do battle over preserving our traditions, or put them in perspective with the requirement to continue expanding our knowledge, to sustain our past success and prominence as a leader of the world.

Thursday, October 13, 2005

The Constitution and Representative Government

At the time the constitution was written there was no theory of evolution, no quantum theory, no molecular theory, no theory of relativity, no cosmological theory, no electronic theory. The only light was from the sun or fire. There was nothing that could be called scientific medicine. Only cut and try methods of treating symptoms, like blood letting or distillates from roots and herbs were available.

Antoine Lavoisier first defined a chemical element and drew up a table of 33 of them for his book 'Traité Elémentaire de Chimie' (Treatise on the Chemical Elements) published in 1789, the year the Constitution was written.

There were about 4 million people in the country and only 13 states. Most were farmers, shopkeepers or tradesmen. There were no corporations. People held slaves. Women couldn’t vote. These were all traditions of the times, many of which we have since discarded based on more recent knowledge and development.

Under the circumstances, the founding fathers did a magnificent job of constructing a governing document for the time and as a guide to future needs. But, can anyone really say that we should be bound by the original intent of the constitution, let alone only the original words of the constitution with all the water that has gone under the bridge since then? Certainly the safeguards enumerated in the Bill of Rights remain viable. But the commerce clause, privacy considerations, and the basic rules adopted for representative government could use a little updating and further definition.

One of the major problems encountered in governing is the remoteness of the people from those who represent them, primarily due to the overwhelming growth of our population and the dominance of political parties, which were never given a charter in the constitution. The gap has been filled by special interest groups who usurp the role of voters through the finance of political campaigns and mass media advertising in return for legislation to accommodate their special needs. There seems to now be a need to bring politicians closer to the voters they represent.

Having one representative for every 600,000 people hardly seems adequate. When was the last time you talked to one of your national representatives? Even the mail you send them is answered by auto responders, or if you’re lucky, a low level staffer. They are so well insulated from the average voter that only polls give them a sense of what voters want, and they are easily ignored without consequences.

It may be time for some form of tiered representation where the lowest unit of representation is small enough to where everyone can personally know the person they vote for, like on a precinct level. The representatives at any level would be elected by the representatives at the next lower level, who also know them personally, etc. This system would only have 3 or 4 levels of representation to cover the entire population. A prime minister would be picked at the top level to lead the making and enforcing of laws.

In addition to the formal government elected in this way, a ceremonial head of government would be elected by all the voters at large. His duties would be to meet with kings and other ceremonial heads of government around the world, go to scenes of catastrophe and sympathize with victims, go to holiday events and make rah-rah speeches, present awards to military heroes, citizens of the year and other personalities of achievement, go to press events and rally the country around causes, and generally do all the backslapping chores required by a population that worships celebrity.

This electoral system would be safeguarded by a recall process, where a representative at any level could be petitioned and recalled by a vote of all the people they represent. If they were recalled all the representatives who voted for them would also be recalled, all the way down the line. In this way, representatives would have a stake in picking the best people and would know the people they pick personally. A similar referendum process would allow petitioning and reversal of any piece of legislation by a vote of the people. If a piece of legislation was overturned by referendum, all those representatives voting for it would be automatically recalled, as well as all the people who voted for them, all the way down the line. This would ensure that only laws that the people supported would be implemented.

A similar initiative process would be available to petition and pass laws by a vote of the people. If a law was passed by initiative, all representatives would be recalled and new elections at every level held. This would ensure that representatives would pass and enforce laws that had the support of the people. A classic example needing this kind of attention today is the illegal immigration situation, where politicians refuse to deal with the problem because the money getting them elected and reelected is coming from people who don’t want the problem addresses while the majority considers it one of the most important problems that needs addressing.

It could be expected that these initiative and referendum processes would be seldom used because the system itself would be more responsive to voter sentiment.

People could still join interest groups or even political parties, but these groups would have no role in electoral process like they do now, where the two major parties are able to essentially exclude candidates that don’t belong to one of them by controlling participation in debates and press opportunities.

This is only one of many ways our constitution could be improved by taking advantage of what we have learned over the past 200 years. There is always fear of throwing the baby out with the bathwater in any attempt to modify a document that has served us fairly well for a long time. But, there comes a time when even valuable, almost sacred documents become out of date for the times.

Saturday, October 08, 2005

Curves along the Economic Road


When supply side economics became the vogue in the eighties, Arthur Laffer came up with the Laffer Curve to show that there was an overall tax rate which maximized tax revenue. There would be no tax collected if the rate was zero and if the rate was 100% no one would be interested in working so the revenue collected would again be zero. Somewhere in between a rate would exist which would result in the maximum tax revenue.

An analysis of government intervention in the free market would yield a similar curve, which we will call the Laugher Curve, since we would all be laughing instead of fighting if we could find the optimum point. Growth is increased by some government regulation of markets because it makes the markets more stable and prevents monopolies from developing. Some government regulation also promotes growth when it helps workers by promoting safe working conditions and stable employment. So growth increases as the degree of government intervention increases, up to a point, beyond which growth drops when the tax burden necessary to improve the lot of workers and regulate competition swamps its beneficial effects.

These trends are indicated in the following graphs, which are not meant to represent the actual data, because we don’t know at what percentage the peaks in the curves occur.

Supply siders always seem to assume that any tax rate cut is a good tax cut because it stimulates growth. But, this is only true if the current rate is beyond the peak of the Laffer Curve. Similarly, conservatives always seem to assume that any government intervention in the free market is too much, and liberals appear to assume the opposite, when in fact there is some degree of intervention that produces the maximum growth rate.

To further complicate the issue, even if we could determine the optimum percentage in each case we still might not have the best overall situation for the good of the country. Growth due to increases in productivity usually increases our overall standard of living, but not necessarily the standard of living of everyone. It is possible to have an increasing standard of living for a few people, while the majority tread water or backslide. To ensure an increasing standard of living for everyone, further government intervention is usually necessary to level the playing field by transferring benefits to those lower on the economic scale. This may result in lowering overall economic growth, while at the same time enhancing overall well being. A measure of this effect might be represented by the median per capita domestic product (MPCDP), rather than the gross domestic product (GDP). Comparing the solid and dashed Laugher Curves shows the trends. The peak of the MPCDP curve occurs at a higher rate of government intervention.

Unemployment can be addressed in a similar fashion. Low wages and no government assistance may result in the least unemployment and greatest GDP, but it won’t result in the greatest MPCDP, or overall well being of the population.

We need to get away from addressing prosperity only in terms of maximum GDP growth and lowest tax rates and try to determine what these curves actually look like if we want to minimize class warfare and promote the well being of the whole country.

Thursday, September 15, 2005

The Palestinian-Israeli Conflict and Worldwide Terrorism

The Palestinian-Israeli conflict is a microcosm of the larger war on terror. After over half a century of fighting terrorism with a few billion a year and the moral support of the largest superpower in the world, the Israelis are no closer to peace, or to killing all the terrorists. Now they have embarked on walls and partition as a better way of addressing the problem.

The withdrawal from Gaza and a few settlements in the West Bank is looked upon by the West as progress in the conflict, and a move closer to the roadmap prescribed by the US. This is an illusion.

In a recent Newsweek interview Sharon was asked the following question and gave the following answer.

WEYMOUTH: Why did you decide that disengagement is the right thing to do?
SHARON:
I never thought there would be any possibility that a small Jewish minority in Gaza—seven or eight thousand Israelis, [living] among 1.2 million Palestinians, whose number doubles every generation—might become a majority or [establish] a place that could be an integral part of the state of Israel.”

In other words, there was no illusion that this was motivated by any desire to see a Palestinian state alongside Israel. It was simply to partition off a section of Israel that would clearly always be dominated by Palestinians. The Israelis don’t envision a state. They intend to control access to Gaza. The Palestinians in Gaza are precluded from having an airport or a seaport to engage in free commerce with the outside world. They insist the border with Egypt be controlled by the Egyptians to their liking. They insist that the Palestinian authority eliminate Hamas and Islamic Jihad. This is impossible, since these organizations comprise nearly half the Palestinians in Gaza, meaning any attempt to eliminate them will mean civil war. They have also indicated continuation of any terrorist activity will mean a severe military response, in other words they will fight terrorism in the same way as they have always contended with it, by at least an equal destruction of lives and property. But, now this destruction will not be occurring in Israel, but in Gaza, essentially a prison camp for Palestinians.

Will partitions and walls eventually end the conflict? It may afford somewhat better protection for Israelis but the conflict is unlikely to end for the same reason the war on terrorism is unlikely to end through the way it is now being prosecuted. First, the lot of the Palestinians, contained in Gaza and the West Bank without commerce with the outside world will not improve. It will probably get more hopeless than it already is. Having nothing to lose and valuing their religion more than their lives they will continue to fight the endless battle of overcoming Israeli dominance with terrorism, the only weapon available to them. And the battle will continue as a war of attrition. Since the Palestinians have a birth rate higher than that of Israel, the end is not in site. Eventually, only the diehard fundamentalists in Israel will be left to fight the battle alone. The Jewish progressives will realize that they will not want to burden future generations with the fate of constant terror and marginal progress and join the Diaspora in countries where they are accepted and can prosper.

Unlike the Palestinian-Israeli conflict, the US, perceiving itself a victim of a similar terror has more options. Isolated by two oceans it only has to worry about terrorists in its midst. If the will is found to protect its land borders and identify its citizens, as Israel does, it can be secure from all but the most rare of terror attacks. But, the international problem of terrorism will continue as long as there are extremists that value their religion more than life, and the tactics used to combat terrorism generate more terrorists or more sympathy for terrorism than they eliminate. I think we have shown that cooperation among countries in tracking down terrorist leaders and destroying infrastructure and communication necessary to their activities reduces terrorism, but that military action can have a positive or negative effect, depending on what specific military action is taken.

The long term solution to terrorism is likely to come when Islamic countries follow the example of Qatar, converting their monarchies to democracies more like the UK, and when Western countries realize that they have a role in encouraging this transformation, but that they must respect the sovereignty of other countries and treat them as equals, rather than attempting to control or use them to their own advantage.

Saturday, September 10, 2005

Religion and Civilization

This discussion is not about the validity of religion, but about the consequences of religion. If you want to understand the futility of arguing the validity of religion a good place to start is the PBS series, The Question of God. Or on the subject of religious wars throughout history, the Penn State site on Holy Wars and the Western Cultural Tradition.

A New Modern Era

It is somewhat uncanny that the first George W. Bush presidency intersected with the events of 9/11/2001. For the previous several decades religion in America was ever present but relatively uncontroversial and threats from external religious sources were not taken with any degree of seriousness, although many incidents should have awakened the American public and its government.

Essentially all American presidents have claimed some form of religion, it being a necessity to become an American president. But, George W. Bush was unique in his claim of being born again in the Christian faith and not only embracing it, but promoting it as a star in his resume for the position he sought. Indeed, in a presidential town meeting he cited Jesus Christ as the philosopher who most influenced his life. To the religious in America this must have seemed like a gift from God, finally having a candidate to support that identified with their deep seated religious beliefs.

His performance in office showed that he was no pretender to religion. His championing of social issues based in religion, his black and white identification of good and evil, his support of faith based government initiatives, and his strong identification of religion with patriotism and American exceptionalism proved he was the genuine article.

So along comes 9/11, an attack on primarily Christian America from Islamic extremists, justifying their actions on the basis of the Quran, and the interference of the West in their practice of Islam.

And the rest is history.

The War on Terror

The administration was quick to assure Americans that the subsequent wars were not wars on Islam but a war on terror, since the West is a civilization of countries made up of many religions, whereas Islam likes to think of itself as the true world religion existing in many countries.

But we are not fighting terrorists from the IRA, the white supremacist movement, communist guerilla groups, or an other form of terrorism than that perpetrated by Islamic extremists. So it is really a war on Islamic extremism.

Religious Extremism and Changes in American Attitudes

Religious extremism comes in many stripes. We have our own home grown religious extremists like Pat Robertson, accepted as a legitimate candidate for president, indeed winning the Iowa caucuses in a recent primary election, and now advocating the assassination of a Latin American president and praying for the death of Supreme Court justices so they can be replaced with people more to his liking.

And of course we have al Qaeda, with megalomaniacal leadership primarily based in politics rather than religion, but supported by a wide swath of religious sympathizers to their cause in the Islamic street.

In both these cases we have people whose beliefs dominate their actions. The people they approve to lead are not selected for their secular qualities but for their positions on upholding religious beliefs on a myriad of social issues.

There is no doubt that America has rich religious traditions, and that over the years the country may have strayed from them since we approved the constitution. But, we also had a tradition of slavery, of women being subservient to men, of championing the rights of those immigrating from abroad over those who originated here, etc. In all of these cases we have put these traditions behind us in favor of what seemed a better path for a nation whose advance in knowledge and understanding had changed our perspective. Indeed, our countries of origin abroad have moved in the same direction, some much further than our own.

Since the start of the Bush administration and the events of 9/11 we seem to have moved back in the direction of greater religious involvement and outspokeness, even to the extent of integrating religion more in the public arena, education, and government. The theory of evolution is now being put on a par with faith based “intelligent design” concepts. Re-restricting abortions, increasing animosity toward unusual sexual orientation, introducing prayer back into the classroom, and increasing the presence of religious symbols in the public square all seen be in the ascendant. This has caused a backlash among the secular community where they may soon become less tolerant of the privileges offered religious practice in the form of tax breaks on religious property and deductions for religious contributions. Since the majority of Americans have some form of religious affiliation or personal dedication, secular people fear a tyranny of the majority could develop.

Meanwhile, our new pride in American exceptionalism and patriotism, now extended to preemptive military actions, has caused concern among our long standing allies and a changed view of Americans around the world. It is difficult to identify the degree to which these changes are due to our change in diplomacy or to renewed pride in religion, American exceptionalism or patriotism, but the reelection of George W. Bush seems to indicate to those abroad that the American people and not just the administration support the changes. This has compounded our conflict with the views of other nations.

Religious Belief and Freedom of Action

When people base their decisions on religious tradition, or in the extreme, on the dictates of the literal interpretation of ancient writings, they have less freedom of action in adapting to changes in population, culture, and scientific and intellectual advancement. This is apparent from examination of the degree and rapidity of change in rural and urban environments. Where people experience less change, less contact with others of different cultures and attitudes, and less opportunity for learning or advancement, cultural traditions seem to be sustained over a longer period. Urban areas tend to be concentrated on the coasts or at the intersection of natural terrain where traffic is greatest. What we are now calling red and blue states are really red and blue areas, urban areas being more blue and rural areas being more red. Rural areas remain more steeped in religious tradition and urban areas more secular, although many traditions and habits are sustained for multiple generations in the migration to urban areas.

Urban areas are growing, while rural areas are shrinking. But new exurban areas are now developing where primarily successful urban people are migrating to previously rural areas and carrying the urban attitudes along with them. The question that arises is whether religious traditions can be sustained over generations, and this depends on the degree to which religion is a learned behavior or whether it is something inherent in the human psyche. The experience in other, older countries seems to indicate that less developed countries are more religious and vice versa.

If we retreat to earlier and more fundamental religious traditions we will have less freedom to adapt to changing circumstances, since we will be guided in our actions by the restrictions and limitations of our religion. It appears clear that the western enlightenment was a major factor in our advancement at a more rapid rate than Islamic countries that once dominated the world. Is religious extremism likely to become more virulent in our society as it has become in Islamic society? Are we more likely to succeed in our struggle against Islamic extremism by becoming more religious in our own society? These are questions that will determine our future as a country.

Sunday, September 04, 2005

The Clash of Theism and Human Rights

The human rights tradition sprung from the enlightenment, was solidified during the French Revolution in the publishing of the Declaration of the Rights of Man and Citizen, and is documented in its modern context in the Universal Declaration of Human Rights passed by the United Nations after World War II, on 10 December 1948. (http://chnm.gmu.edu/revolution/chap3a.html) It embodies concepts which are at odds with the Bible and the Quran, the primary sources of religious doctrine of the three most prominent modern theistic religions. These governing religious documents tolerate, and sometimes even prescribe inequalities that are not tolerated in the human rights documents.

There is a fundamental difference in the documents underlying religion and those underlying human rights. The former are immutable, the latter subject to change as circumstances change. Civilization has changed dramatically since the Bible and the Quran were written. Is it to be bound to principles and laws that are a product of a time when knowledge and understanding of human and natural phenomena were primitive? Or are we to benefits from generations of study and enlightenment?

Until recently, modern religious practice has mitigated these conflicts by accepting some of the tenets of human rights. Countries have precluded conflict by prescribing separation of religion and state, while others have a state religion, but nevertheless accept human rights principles, while still others incorporate religious law into their governing law.

The continued coexistence of religion and human rights depends on either a compromise of religious principles or human rights principles, in some cases. In the past decade we have seen a rise in religious fundamentalism which shows less tolerance for human rights and a greater demand for obedience to religious principles enumerated in the Bible and the Quran. In the case of Islam, this has resulted in Islamic extremism which condones terrorism to achieve its ends. In the case of Christianity it has resulted in the election of a born-again Christian president, and increased demands from the Christian community to accept a greater degree of Christian influence in government and a renewal of tensions between the human rights and religious communities. Many of the conflicting issues now before the American people have religious roots, including abortion, stem cell research, attitudes toward and rights of homosexuals, toleration of religious symbols in public places, and use of religious organizations as instruments of government activity. If the trend continues we can expect to see protests against tax exemptions for religious institutions, and income tax deductions for individual giving to religious institutions.

We live in a very pluralistic world of many cultures and religions. Our foreign policy is dependent on an understanding and appreciation of other cultures. If our country becomes bound by religious traditions and customs even more than it is now it will complicate our role as a citizen of the world or isolate us from countries that don’t accept our religious principles. We must deal with countries that have even more deeply held religious beliefs and where religion governs the society. Will we be better able to change or accommodate these countries if we are bound by an equally restrictive set of beliefs. Or will we be better equipped to handle foreign diplomacy by keeping religion a private matter and out of the arena of government?

Discussion of religion and its consequences has been somewhat taboo in American society because a large majority of Americans have some religious affiliation or sentiment. Most religious people turn away from any discussion of their beliefs, considering it a private matter and out of bounds to anyone else. But, it is becoming less of a private matter and more of a public matter when religious people demand more than their right to practice their religion and defend it. When religious dogma begins to infringe on human rights and affect other people it is an open subject for discussion and legislation. It’s time for a frank discussion of religion, particularly in the context of its conflict with human rights.

Saturday, September 03, 2005

The Nature of Current and Future Conflicts

The Lessons of the 9/11 Attacks

On September 11, 2001 the country was traumatizing by an attack by Islamic extremists, after many years of not taking the threat seriously. It was natural for us to strike back at such enemies immediately and take all measures necessary to prevent future attacks. But doesn’t there come a time when we must examine the nature of the conflict we are in, the reasons for the occurrence of such events as 9/11 and the best way to protect ourselves and achieve our long term goals for a peaceful and prosperous world?

Since the attack was by air, our first impulse was to keep such an attack from being repeated by securing aircraft and preventing hijackers from getting on planes. In this endeavor we went overboard, to the extent of scrutinizing babies and old ladies and inconveniencing air travelers in a major way while the remainder of our infrastructure remained largely unprotected and our borders as leaky as ever.

But, the event has heightened our awareness and we are getting our house in order, slowly but surely. We are finally taking border security and identification of our citizens seriously and making a major effort to secure our homeland. Four year without another attack has proved that we are no longer an easy target of opportunity.

Now we have adopted a military posture towards terrorism, even taking nearly unilateral actions in the face of world criticism, to protect ourselves. But, are these actions in our best interest or is it now time to examine other ways that might achieve our goals at less cost of human life, treasure, and reputation?

The War on Terror

Terror is many things. Tim McVey was a terrorist. The Weather Underground were terrorists. The IRA engaged in terrorism. Palestinians engage in terrorism. Israelis engaged in terrorism to establish the state of Israel. Then there are eco-terrorists that put steel shards in trees to injure loggers. And finally there are Islamist terrorists. All attack civilian targets in their attempt at revenge or to further a cause.

We call everything a war in modern times; the war on poverty, the war on drugs, and now the war on terror. In the former there were no military operations, in the latter there are. When is a war not a war requiring military operations, or requiring more than military operations? If the enemy has a well defined force and command structure and fights back militarily it may be a war. If the is no military response from the enemy, only stealth attacks from unknown sources, possibly widely dispersed or spontaneous, is it really a war that can be won by military operations?

If we are going to call the current threat a war then it is more a war on Islamic extremism than a war on terror. Just as there has been no winner in the Palestinian-Israeli “war” there is not likely to be a winner in the “war” on Islamic extremism. This conflict, like the Palestinian-Israeli conflict, will likely require a political solution. Calling it a war will only cloud the search for a real solution.

The Nature of Islam

The Islamic religion is different from other religions in that it prescribes how Muslims should live their lives and govern themselves according to what is called Sharia. This is fundamentally different from other religions and from western constitutional democracy, where constitutions and the legal framework are decided by the majority of the people and leaders are democratically elected. Necessarily, societies governed by Islamic Sharia are democratic only to the extent that a majority decides to adopt Sharia as law. In this case western concepts like human rights are precluded to some extent. Women, are by definition, treated unequally and non-Muslims are viewed as inferiors.

Imposed on the concept of Islamic Sharia is the view by Islamic extremists that any measures to achieve it are legitimate, including terror. If local dictators or western societies somehow interfere with achieving the goal of Sharia they become targets of terror and any other measures necessary to achieve it.

So there are really two questions to be answered. Can western cultures coexist with Islamic societies electing to adopt Sharia as their governing law? Or, is only the use of terrorism to achieve it to be contested?

Modern warfare

Can modern warfare methods defeat terrorism? Or are only political solutions possible?

In the 18th century armies lined up in rows of bright colored uniforms and fired volleys at one another. Then someone discovered that it was more effective to not wear a uniform and fire from behind a tree or hill. The regular armies cried fowl and dismissed the new tactics as unprincipled and inhuman, but to what end. It was only their opinion. The other side saw it as the only way to achieve success. Now we have a similar change in modern warfare. We send in the people in uniforms with jets and tanks and cruise missiles. Sure we can break things and kill people, but to what end. The enemy uses what ever tactics are necessary to achieve the result they want, irrespective of our opinion about their tactics.

The use of high tech weapons and fully equipped troops at great distances from the homeland is very expensive, while the use of large numbers of basically equipped local guerillas is not. The proliferation of small lethal weapons in the hands of large numbers of people can result in losing all the battles but winning the war if they can persevere while the superpower wearies of the expense and duration of a protracted conflict.

A New Assessment

At some point modern western societies must ask, is it worth it, or is there another way. This is the conclusion that Israel and the US have come to in the Palestinian-Israeli conflict. It’s the conclusion we came to in the Vietnam. We could claim victory in skirmishes in El Salvador, Haiti, Guatemala, Grenada and Panama with military power. But these were small and in our back yard. But we went home from Lebanon and Somalia, when confronting actions there, probably because to result didn’t justify the cost.

Now we have to ask ourselves again, does the result justify the cost in the confronting Islamic extremism primarily with military power? Is there another way than military power that will achieve a better result? We have to step back even further and ask ourselves what our long term political goals are. Do we want to continue being the lone international superpower at all costs, even if we have to go it alone? Do we have the capacity to do this in the face of growing economic power in China, India, Russia, Europe and other Asian countries? Or are we better off being one of the key members of the world community and addressing conflicts only as a member of a world wide alliance?

Other western countries share our dilemma of deciding whether a potent and aggressive Islam can coexist with western democracies, and under what circumstances. Will moderate Muslims join the West in confronting Islamic extremism, or do they secretly favor societies governed by Sharia and sympathize with the goals of the extremists?

Are we better off with less democracy, royal families and even dictators in Islamic countries as long as they don’t abuse the populace and are willing to advance the rights of women and minorities? Or should we step back and allow Muslims to live under Sharia, possibly even helping them to achieve it? What course will advance our interests the most? What will best ensure the safety of world commerce, prevent the outbreak of nuclear catastrophes, and minimize terrorism against peaceful neighbors? These are the questions that must be answered by future government leaders. We hope they are up to the task.

“Fend for Yourself and Don’t Look Down”

Judging by the results, our motto “In God We Trust” isn’t serving us very well. Approximately half or working America is doing quite well, with comfortable salaries and fair prospects for improving their lot. The other half has stalled for the last several decades with few prospects for improving their lot. While the cost of living has increased wages have barely budged, while many jobs no longer include good fringe benefits or full time employment. More and more households are kept afloat by having two or more occupants employed.

A metaphor for the situation might be depicted as a giant ocean with many boats afloat, many planes overhead, and many people straining to remain afloat or submerged beneath the waves. Those in the small boats are envying those with the big boats and those with the big boats are envying the jet setters flying overhead, all envisioning someday achieving their status. No one above water seems concerned about those sinking fast into the surf or submerged in the deep.

Meanwhile, government actions are more and more decided by those willing to sponsor representatives. Districts are gerrymandered to ensure one or the other major party stays solidly in power while economic performance is judged on aggregate measures so as not to disclose who is succeeding and who is failing.

All in all it appears a better motto would be “Fend for Yourself and Don’t Look Down”.

Thursday, June 16, 2005

Dissecting the Media

Media means different things to different people, maybe even to the media themselves. Of late, some distinctions have become clouded. Strictly entertainment fare is pretty easily recognizable. But when it comes to political news it’s sometimes hard distinguish between real news, as in reporting, verses propaganda or paid commercials for this cause or that

Newspapers at least separate opinion pages from reporting, or at least the purport to do so. But a lot of it in both sections comes from AP, Reuters, or syndicated columnists. Sometimes I long for another division, something like “This News is Really New” or “This is a New Idea” vs. “Rehashes Still in the Current News Cycle”. In the syndication department it would be nice to see a division between “This Guy has done Some Research and has a New Twist on this Idea” vs. “This Guy works for a Think Tank so you know His Take Already” or “This Guy Needs to Publish Something Every Week to get paid”.

To qualify as newsworthy or opinion worthy, it seems it is no longer required that a piece contribute to the dialog on a subject. It can have one of two purposes and still qualify. It can provide information or a proposal which contributes to arriving at a solution to a problem, or it can simply help to reinforce the readers already held opinion on the subject. As the society becomes more polarized, one side is perfectly happy to pay for a piece that reinforces their existing opinion, and doesn’t want to even see anything with which they might disagree. Think tanks make a lot of money just promoting one side of an issue. But, should the media join them in this endeavor, or should the media, the so-called fourth estate, try to present both side of the argument. And, should they try to find a source that is willing to actually present both sides of an argument? Should their responsibility to inform the public just be the presentation of two exaggerating blowhards, one from either side, or should it entail some attempt at a dispassionate analysis of both sides of an issue?

A final consideration is whether the media has a responsibility to highlight issues which do not appear to have a champion. We all know that special interest groups are good at getting free press whenever they can to promote their particular interest. But, what about issues where there is no financial incentive to champion them, such as almost all reform issues. Classic examples are tax reform, immigration reform, and class issues. Although the public support for an issue may be apparent from polls, if politicians or movers and shakers are not anxious to address it, it seems very unlikely that the press will take it on. This seems an abdication of their responsibility to inform the public.

I must give credit to a few major news organizations for now and then taking the initiative, usually after background noise becomes deafening, to investigate issues which have little importance to politicians because there is nothing in it for them in terms of campaign contributions. Good examples of this are the recent articles by the New York Times, the Los Angeles Times, the Wall Street Journal and others on the growing income and wealth gap. It seems all it takes is for one major media outlet to decide to come out with something and within days the rest of the herd is there repeating the same thing over and over. But, it should be pointed out that this income gap has been growing for the last thirty years. If this is how long it takes for the media to get motivated, it may be too late for some issues. When will we see a major push in the media on tax reform, pension reform, and health care reform? Thirty years from now? It may be too late.

Monday, May 02, 2005

Social Security personal accounts that might fly

President Bush’s proposal to means test SS COLA’s has sweetened his SS proposal to moderates. One more step might put it over the top. And that is to put an income cap on the personal accounts equal to the mean personal income (about $35000). Contributions on income above this cap up to the SS cap (about $90,000) would go into the SS trust fund as before, reducing the borrowing necessary to make the transition. And make the personal accounts mandatory, with government bonds as an option. One problem the program will encounter if it is voluntary is that high income people will join and low income people will not, defeating the purpose of the program.

President Bush says he wants low income people to become part of the ownership society. Since they don’t make enough money to save in IRA’s or other instruments, and SS is a mandatory tax, this is a way for them to save and become part of the ownership society. Having a personal investment cap means that there is no disparity between high and low incomes as to how much of SS they can privatize, and will force people to save at least a portion of their income.

Another tweak that would get more people behind personal accounts would be to allow the investment to be in an owner occupied home. Allowing SS contributors to acquire and pay off their residence would reduce the need for retirement income. There are already laws that allow this investment to follow the owner to other homes if a move is necessary. Rent is a major portion of retiree’s expenses if they don’t own a home that is free and clear. The tax free accumulation of such gains in the value of a home, together with the deductibility of mortgage interest make home ownership one of the best investments a person can make.

Thursday, April 21, 2005

The Differences in American and European Values

Once in a while you run across a paper that gives a complete picture of a topic that impresses. This is one such paper from the Elcano Royal Institute.

http://www.realinstitutoelcano.org/documentos/183/ELE183.pdf

Conclusions

The idea that a new cultural divide is emerging across the Atlantic is a gross misrepresentation of reality. The US and Europe share major values on democracy, human rights, the rule of law, market economy, family, abortion and homosexuality, even if lately Europe is moving faster along a liberal trend and the US much more slowly. The great difference on these and other important value issues (consider the role of women) is between rich and poor countries, not between Europe and the US.

Indeed, one could also argue that Europe is also moving in a more conservative direction. On questions such as immigration and xenophobia, national identities and multiculturalism, it is Europe that is lagging behind. And the emergence of powerful extreme-right parties in Europe is seldom considered but is a major fact that explains many events (for example, the Presidency of Jacques Chirac).

Moreover, there are many Americas and many Europes, and indeed many Americans are ahead of the Europeans and many Europeans are behind the Americans. There is a European America as well as an American Europe. Unfortunately we cannot compare data from the 50 American states with the 25 European nations but it is reasonable to suspect that the result would be a blending together of the two sets of data into a single continuum.

This similarity is evident in issues such as the perception of threats, mutual views and views of the world, and even on when and how to use force.

However, the greatest differences arise when one has to decide about the use of force. Here we have a difference that indeed makes a difference: Europeans are always much more reluctant than Americans to use military force under any circumstances. There are more doves and fewer hawks in Europe than in America, even recognising that many Americans share European views and vice versa. We can argue that Europeans are more reluctant to use force simply because they have very little of it, but this explanation confuses cause and effect. It has been a tough and long learning process for the Europeans to see war and terrorism in a wider context and establish measures and instruments that can be used as an alternative to force. It is our attitudes, a result of our respective experiences, that account for our military power, not the other way round.

And one final comment: isn’t this reasonable? After all, war is always a last resort and must be used with great caution. Hence, a debate on its limits and conditions should be welcomed in democratic societies. Next time let’s hope it is not polarised on either side of the Atlantic. We already have what could be considered a pacifist America[34], so what we probably need are European neo-cons willing to discard the free-rider culture inherited from the Cold War.

Saturday, March 05, 2005

Greed: One of the Seven Deadly Sins

The basis for a rebirth of the Democratic Party should be to establish a solid moral position that the electorate can get behind rather than chasing just enough votes to squeak ahead of the Republicans with a program very close to theirs. There is a paper at the link below that the DNC should all read that would go a long way toward this goal.

Greed: One of the seven deadly sins.


Here are a few excerpts:

An essay concerning the origins, nature, extent and morality of this destructive force in free market economies.

America is once again a nation of extremes. There is indeed a problem, and it has a history.
Historians Will and Ariel Durant (19) estimated in their survey that the gap between the wealthiest and the poorest in
America has become greater than at anytime since Imperial plutocratic Rome. The Durants show a cycle repeating through history. Great social inequality creates an unstable equilibrium. The swelling numbers of the poor and resentful come to rival the power of the rich. As grievances and restlessness grow, government worsens, becoming tyrannical. Eventually a critical point arrives. Wealth will be redistributed, either by politics, or by revolution.

Greed is not a rational force. Not all wealth is created by greed, and not all inequalities are caused by greed, but if you could start with a society of complete equals, unrestrained greed will be sufficient to quickly render that society unequal. Present inequality is vast enough, the chances for the poor to work to close up the gap are long gone. Inequalities of this magnitude tend to become hereditary, and by and large, the descendants of the American poor will be poor.

In a free society, some people's greed inevitably means deprivation for others. This does not require environmental limits, it only requires persistent and competitive self-promotion, and in a vast nation whose economy is two hundred years devoted to these principles, we now inhabit a society with a small fraction of astronomically wealthy individuals towering over a growing mass in poverty.
America is arguably now more unequal than any of the original European cultures,yet we cling to and proselytize a horribly outdated economic theory which implies equality but actually delivers more inequality. Greed is the outstanding wrong because it reverses the utilitarian ethic. It produces the greatest good for the smallest number. Democracy's founding virtues are freedom and equality, so greed without restraint, producing great inequalities, becomes an undemocratic force.

What about the churches? Their purpose for existence includes helping the weak. If each church took in 6 homeless, there would be no more homelessness.

First, this society should decide how low any member can go. That establishes minimum rights. It requires we identify the least-advantaged person in society, and draw focus to him. Next, the very top and the very bottom of society should be (and all intermediate levels should be) connected, as if by a loose linked chain. Then if the top rises, it pulls the bottom up with it. If the bottom moves up, that closes the gap toward equality. This arrangement does not prevent any upward rise; but it establishes consequences on movements at the top.

Greed has to be reinstalled as a moral wrong, and in religious circles, as a sin.
We want our morality back!

Monday, December 06, 2004

Ideology and Ideologues

The most prominent forms of ideology in America today are what we refer to as conservatism and liberalism. The current meaning of these terms is somewhat removed from their original meanings. Liberalism used to mean a belief in liberty, freedom and self reliance to do one’s own thing and achieve what one could with the resources at hand while allowing others to do the same, without coercion. This implied a level of resourcefulness and responsibility for ones actions and a tolerance of others choices to pursue their own ends as they saw fit. Conservatism meant a respect for what had come before and served people well, and a reluctance to chuck the old for the new without due consideration of what might be lost as well as what could be gained with the new approach.

Today liberalism is identified with the Democrat Party and conservatism with the Republican Party. So liberalism has come to mean a belief in government as a way of solving problems, in addition to the usual private way. Conservatism still has an element of hanging on to the past and what it has delivered, but now has an element of old liberalism is mixed with it, the belief in free markets and individual responsibility. This new version of conservatism may arise from the mixture of old style conservatives and libertarians in the current Republican Party.

But, what are the salient features of these ideologies? In general, people we call liberals now tend to have egalitarian and altruistic motives. They see the differences in endowments of people, either due to heredity or culture, as something visited upon them, and either giving them an advantage or disadvantage as the case may be. They believe that one role of government, under its responsibility to promote the general welfare, is to equalize these differences so everyone can partake of the prosperity of the society. Present day conservatives, on the other hand tend to think that people should be rewarded based on their ability and capacity to contribute to the society. And the conservative ideologues believe that free markets are the principle mechanism for allocating the rewards. The reality is that the society will probably prosper best with a mix of the two.

Analysts vs. Ideologues

The analyst realizes that people generally behave both altruistically and selfishly. They are more altruistic in their dealing with family, clan, or friends and more selfish with respect to people outside these groups. Altruism leads to cooperation which can achieve a great deal in a society. Selfishness is great motivator. If we think we can reap the rewards of our efforts we will work harder and longer. Both of these personal attributes must be harnessed to achieve a smoothly running society.

Analysts generally view things as a tradeoff. They like to find the best mix of competing options to deliver the best result. Ideologues tend to view such behavior as not standing for anything. They like to have a set of rules or guidelines to tell them which path to go down, which option to select. Having to evaluate all the options and weigh one against the other can be real work, particularly if you do not have the aptitude for it. Analysts have the aptitude, but sometimes it can get them into trouble. They try to digest all sides of an issue objectively but get to the point where they suffer from analysis paralysis, and never get to a decision. Ideologues rarely have this problem. Over time they build a filter of rules and guidelines of what is acceptable and what is not. Rather than seeking out information on all the options ideologues tend to seek sources that reinforce the filter that they have developed. In some cases, this filter can change over time if the ideologue is not too extreme. In other cases, particularly if a belief system is involved such as occurs in devoutly religious people, the filter can be nearly immutable.

To some extent everyone is an analyst and everyone is an ideolog. It’s just a matter of degree.

Liberal Ideologue Examples

So what sort of filter does a liberal ideologue have? Being more altruistic and egalitarian liberals tend to be more sensitive to when people are in jeopardy or hurting in some way. As the saying goes, “they feel your pain” and they want to help. If the victim is in need of something, they want to find it for them to relieve their suffering. And where can one find it? Well, where someone else has an over abundance of it. And how do you get it? Well, buy it, beg for it, or take it in a legal way, which generally means with the government’s help and approval. What’s going on in this scenario is that not much attention is being paid to the consequences of what solving this problem in this way is having on the system. If too much is redistributed in this way it may cause a lack of incentive to produce what is being redistributed. But, if we have a liberal filter that says, if it helps someone it’s right and just, we are home free.

Another premise in the liberal’s filter seems to be that the earth was perfect before man got here. So anything that can bring it back to that state must be good, and anything that man has done to it must be bad. Hence, environmental extremism develops. Get rid of all the dams, protect all the snail darters and get people out of the wilderness. Again, if one accepts the basic premise, they look no further. When, in actuality there are tradeoffs to be made to arrive at a compromise solution.

Conservative Ideologue Examples

So what kind of filter does a conservative ideologue have? Being more attuned to individual effort and self reliance the conservative ideologue is likely to think more along the lines of, “What I produce is mine and what you produce is yours.” I might want to exchange some of mine for some of yours in a mutual bargain, but there will be no taking of anything of mine or anything of yours. So what is being overlooked in this scenario? Well, do we really produce anything on our own? Or is there a storehouse of resources generated in the past and passed on to us that we draw on to produce something in the here and now? Who owns this storehouse of past resources? More likely it is owned in common than individually, if it happens to be the road we drove to work on, the school we attended, the library we visited, the modern technology we used, etc. So how much of our produce are we entitled to and who gets to decide? Generally the people in charge do. This may be to boss, the company, the government. Or it may have nothing to do with the cost of what we produce, but how scarce our particular contribution is. It’s all very complicated, and probably no one has the right answer, but if we have a filter that says, “If we were paid a certain amount for our contribution it must be right and just,” we are home free.

Another premise in the conservative filter the free market and small government, which go together, since regulation requires government and markets can’t be completely free if they are regulated. So if any proposition impinges on markets it does not pass the filter. If it reduces the size of government or eliminates regulations it’s considered good, so again you’re home free in any argument about the subject.

The Analyst Example

Without any filters to justify our case, we would conclude that there must be an incentive to produce, if we are to have anything to reduce someone’s suffering. If we take too much from very able producers they will stop producing. We would also realize that what we are paid for what we produce is not necessarily what is right and just, that it may be somewhat arbitrary or transitory, for being in the right place and the right time where we could take advantage of a shortage, or we may be involved in a monopoly enterprise. Or our employer may have paid a politician to cut him a better tax deal or a sole source contract to enable him to pay us more. We would recognize that part of the value of what we produce is based on resources contributed by people in the past, which is held in common. We would realize that if a market is completely free it might lead to more wealth ending up in the hands of a few who have gamed the system through monopoly, paid favors, kickbacks, or simply due to the market structure itself. There is nothing in market theory that says that all will be provided for at least to the extent necessary to survive. We come to realize that some government regulation is necessary to make the system work efficiently, but too much regulation might reduce the productivity of the system. We would look for the tradeoffs in all these relationships, so that everyone has an opportunity to be productive, healthy, and relatively satisfied with their role in the system. We would realize that people are more productive when they feel that things are getting better, not worse, that they don’t have to worry about where their next meal is coming from or where they’re going to sleep tonight. We would realize that a system where everyone has a role and some measure of control is better than a system where a few people are in control and the rest feel powerless and dissatisfied.

So what are these ideological filters actually doing? Aren’t they giving us a false sense of reality? It may be confusing to have to analyze every situation in depth, but we at least should realize the whatever filters we use or shortcuts we take to draw conclusions may not be valid and are subject to change based on new information. So we are better off seeking out contrary evidence, rather than evidence which reinforces a filter which may be invalid.

Detecting and Confronting Ideological Arguments

In general, ideologues don’t seek compromise and aren’t bothered by lack of analysis or evidence. They are content to refute an argument against an extreme right wing proposition with an example of an extreme left wing proposition that is equally awful, or vice versa. They rarely argue from their own knowledge, but quote from others arguments. You will rarely see a long argument by an ideolog. They deal in clichés, trigger words, and concepts which their own kind will recognize as valid. If this doesn’t work they will resort to smearing the messenger or the source of the proposition. Ad hominem attacks are frequent. Appeals to authority and testimonials from prominent sources are common. In general, they use all types of logical fallacies in lieu of deductive argument or evidence. If all else fails they will accuse an analyst of having too much time on his hands, being arrogant, having an over inflated ego, and as a last resort that he may be happier in France or some other foreign country.

The only argument that can be used to confront ideologues is to point out the logical fallacies they are using. Even this won’t change their mind about anything. Ideologues don’t change their minds, even over long periods of time when circumstances have changed dramatically. But, they will simply go away and argue with another analyst or ideologue of the opposite stripe. If an ideologue is a close friend or family member, these bonds may allow for some progress in helping them overcome the malady over an extended discussion period. Otherwise it’s best to avoid them and spend your time discussing and learning from other analysts.



Thursday, November 18, 2004

Suggestion for the Bush Tax Reform Plan

President Bush has indicated that he wants to simplify the tax code and create an ownership society. I share both aspirations, and offer this suggestion to correct an unfairness that has existed for a long time and allow people who don’t have much to invest, because of high taxes, a chance to participate in the ownership society.

Individuals pay more taxes than corporations with the same net income because corporation are able to deduct all expenses necessary to making a profit, while the limited exemptions and deductions afforded individuals don’t even cover their health insurance and state taxes, let alone basic living and transportation expenses. Data from a recent study by the Economic Policy Institute as computed from existing federal data for all states and metropolitan areas, show the realistic basic expenses of various households and the taxes they pay vs. what corporations pay. (See graph below) Because these costs have been tabulated carefully for many different family compositions and are region specific, such an exemption will be every bit as fair as the current complicated scheme of exemptions, deductions and credits. Families that earn just enough to cover essential expenses, that is, that have no net income over expenses, pay $800 to $1500 in federal income taxes.

We could simplify the tax code by giving individuals a realistic exemption for the basic income necessary to maintain their household, while retaining the option to itemize deductions if unusual expenses exceed this threshold. This would eliminate many households from the tax rolls, permit many others from having to itemize deductions, and allow all individual taxpayers to invest the savings in the ownership society. Once they are part of the ownership society, with low taxes on investment income, they will be less dependent on government handouts and not as dependent on their wages which are not keeping up increases in the GDP.

This change could be revenue neutral if the wide array of deductible expenses and tax loopholes were eliminated along with the increase in the exemption.

Monday, November 08, 2004

Advice to Democrats after the 2004 Election

As usual, a lot of Democrats are acting as if the world is coming to end because they lost the electoral college by less than 100,000 votes in Ohio. The protesters are back organizing to cut and run before we know if Iraq can be stabilized. The “back to Bubba” crowd is longing for another Clinton or Carter to get some of those religious votes that we all know belong lock, stock and barrel to the Republicans. They remember the intelligent, articulate, charismatic Clinton and forget the sleezeball, bible thumping Bubba that couldn’t keep his pants up and brought us NAFTA and amnesty for illegal aliens. They remember the Carter who promised us hope but delivered malaise. And they’re now using all the Republican weasel words like faith, values, and morals to become more acceptable, forgetting that they are the ones holding the moral high ground defending the poor, the middle class, and persecuted minorities. Here’s my advice if you want to win the next round.

Look at yourselves and decide who you are, and not just what you want to win. Speak clearly and concisely about what you represent and do not try to be on every side of every issue. Make a distinction between religion and morality. You can be moral without being religious, and you are. You can tolerate and accept personal religious belief and expression without tolerating religious extremism, superstition, and destruction of the wall between church and state. We all have values. My portfolio has value. I value my privacy, my liberty, my friendships, my community, my country and my way of life. Your values are just as worthy as anyone else’s values and you should define them and speak up for them.

In the realm of politics, be who you are and spend your time cultivating the cultures where you can be successful. Forget the Bible Belt and Mormonland (Idaho, Utah, etc). You will never succeed in these places where religious literalists dominate. Keep an eye on Florida where more and more people from the east and Midwest retire and where the culture becomes more urban year by year. Watch states like ND whose congressional delegations are all Democrats but will vote for a born-again bubba over a northeastern liberal. But concentrate on the interior margins of the blue states where races were close – Nevada, New Mexico, and particularly the Midwest where the only other state you needed to win was Ohio. If given a reasonable choice they’ll usually vote their pocketbook.

Don’t pick Bubba candidates thinking you can win back the Bible Belt. Don’t pick candidates from the Northeast or California, including Hillary with all her baggage. Not that there aren’t good candidates there, but it’s liberalland and Hollywoodland and it scares the daylights out of some voters that you could otherwise bring into your camp, and you have those areas in hand. Your best bet for next time would be a ticket like Evan Bayh/Barach Obama. The Midwest is where you can make inroads. Midwesterners are largely political moderates. They are quite practical people who are concerned about their economic welfare at times like these.

Keep your extreme liberal wing in check. It can bring you nothing but losses. People are interested in preserving the environment, but they’re not interested in blowing up all the dams during our energy shortage to save some snail darter or make it easier for white water rafters. Promote a gradual process of energy diversification. This is not going to change overnight. Compromise on wilderness areas vs. logging and recreation interests. We need to preserve wilderness, restore polluted areas, preserve clean air and water, but not at the exclusion of maintaining a stable economy and allowing people to experience nature. Participate in the Kyoto process for global hydrocarbon reduction, but drive a hard bargain to make the process compatible with preserving our way of life. Pick your time and place for protests. Too many of them water down the effect and may antagonize more people than they persuade.

Socialism and communism are dead. You are still being characterized by Republicans as socialists, backers of big government programs, and big spenders. You are no longer the big spenders. The Republicans are. I don’t think you advocate the ownership of industry by the government or believe that America is the antithesis of everything good, so don’t hang on every word of old die-hard socialists like Noam Chomsky. There are certain things that government can do better than private industry, like seeing that everyone is treated fairly, has equal opportunity to prosper, a decent education, and adequate food, shelter, and health insurance. This can be a cooperative public and private effort. But, don’t kill the goose that lays the golden eggs by strangling business and innovators with unnecessary and cumbersome regulations. Campaign against corporate welfare and abuse as strenuously as your campaign for equal opportunity. Get on board to simplify the tax code in a way that is equitable for everyone but will prevent the drain of billions for compliance. And, finally get straight on upholding the laws. It’s not acceptable to break the law to get votes or avoid the wrath of your favorite constituencies. Get on board to uphold the laws against illegal immigration, and curb the abuse of the legal system with reasonable tort reform.

My Experience in the Red and Blue Cultures

As some of you know I was raised on a farm in a now red state, ND. The nearest town where I went to school was about 300 people until I was about twelve years old. At the time, ND was neither Republican nor Democrat. It was NPL, the Non-Partisan League, which a majority of residents belonged to. So my parents voted for the NPL guy. At the time mothers were essentially apolitical, having too many kids to attend to, too many clothes to wash, canning to do, cows to milk, etc. and they hadn’t had the vote for too many years at that time. The little town of Tioga had two Lutheran Churches and a Catholic Church. No synagogues or mosques. There was some minor feuding among the Lutherans over which had the right version of the faith, but nothing that would disturb the tranquility of the little village and the surrounding farm community. My father was the treasurer of one of the Lutheran churches for many years. He wasn’t that religious that I could tell, because before he got the job I recall us going to church about twice a year, on Easter and Christmas. But he was a dutiful servant, dressing up in his Sunday best to count the collections every Sunday once he got the job.

Of course, we kids were required to go to Sunday school, get confirmed (catechism), and go to the baccalaureate (religious) ceremony upon graduation. Since everyone else did, and particularly the girls we were interested in, we went to bible camp a time or two and belonged to the Luther League youth organization. All the wives belonged to the Ladies Aid which put on the pot luck dinners after all the weddings and funerals.

My first adverse reaction to the religious “treatment” came at one of the bible camps. Long daily sessions at the disposal of strict clergy had me convinced after a couple weeks that either I was going the hell or I better start believing in Christianity. Fortunately, I had a lot of friends, most who didn’t attend, who starting ribbing me about my transformation, and after a few more weeks I was back to being a normal kid.

Up until my sixth grade, there was nothing about this rural experience that interfered with my conforming to societal norms. Everyone from the farm community thought essentially alike, and not just in Tioga, but in all the other little villages as far as one could travel in those days. Everyone was from similar European backgrounds, settled the area together, and carried on the same religious and cultural traditions of the old country. But in the summer between my fifth and six grade, my first cultural change occurred. An oil company prospecting in the area struck oil on a farm a few miles south of Tioga. By fall the town had close to doubled in population, and we were sitting two to a desk in my sixth grade class. Most of these new kids were different! They spoke funny, liked some foods we had never heard of (okra, black eyed peas, grits, collard greens, etc.), had a different attitude towards blacks, (We didn’t call them that at the time. There was another word that was popular then.) and God forbid, they were building a Baptist church right in the middle of town! Other than that, they were pretty much like us, from rural places with similar values and we started to get along just fine. I recall we discussed race relations quite a bit, and had completely different perspectives on the subject. I had only met one black person up to that time. His name was Joe Bond, and he worked the harvest circuit from Texas to ND every fall, and my father owned a threshing rig so we got to meet all the “strangers”. Joe was a real oddity to us. And I remember the time we had a hearty laugh when my father was paying off the crew and he asked a guy for his name and he said “Stubblefield”! Having met only a few people whose names didn’t end in “son” at the time, this struck us as pretty hilarious. This guy certainly was in the right occupation, spending most of his time in stubble fields loading shocked wheat bundles into his wagon and hauling them off to the threshing machine.

As time passed, the NPL was absorbed into the Democratic party, causing some more independent souls to join the Republican party. As I recall, my father, who had voted for Henry Wallace in 1948, became a Republican until the late fifties, when he switched to the Democrats. It all depended on who was supporting the small farmer the best. At the time most people voted their economics, not their religion.

Then I moved to the big city. What a shock! Never having been very far away from Tioga, I headed out to CA with a buddy of mine in my new 1957 VW bug loaded to the gills with practically everything we owned, and we set up shop in Inglewood, CA which at the time was the most white town in SoCal. Boy, did I meet a lot of “different” people. But I relished it, not realizing that some of these different people were thinking, who is this hick from the sticks with this sing-songy accent. I didn’t know anything about other cultures or what they valued or accepted. It wasn’t until I was up at Berkeley finishing my education where I came to the shocking realization that a girl I was dating, who liked me quite a lot, and we always had a good time every time we went out, informed me that we couldn’t let the relationship go any further because she was Jewish and it was not accepted at the time for her to stray to far from her heritage. This was a real eye opener for this green as grass farm boy from ND. Up until that time I really hadn’t realized the substantial impact culture and heritage could have on people.

After 45 more years of water under the bridge I think I have become pretty wise to the ways of the world and understand the difference between people who have had a wide range of cultural experiences and those who have remained in their original culture most of their life. It think it accounts for quite a few of the differences in the red and blue cultures. I should point out that there are really no true red or blue states, or even red or blue counties. I think it’s primarily red rural areas and blue urban areas. There are still very red areas in CA, like the San Joaquin and Imperial Valleys, while the urban areas are very blue. Even in Nevada, Clark County (Las Vegas metro) is blue and everywhere else is mostly read.

I think this can be explained by the people born in cities or moving to cities eventually encountering a wide variety of races, religions, cultures and values. You come to realize that the values you were raised with might not be the only values that are meritorious, and that you may hold prejudices against strange people, values, and behavior. Your devotion to a religion you may have grown up with is challenged when you see that people having a different religion or no religion at all are equally good people and treat you as humanely, friendly, and respectful as those of your own stock. It’s like the old adage that people who don’t have mountains, make mountain out of molehills. Even if they are essentially alike they find small difference to separate them from others. Whereas experiencing great diversity tends to wash out small differences and make only substantial difference important.

Some people, more than others, long for simplicity and eschew complexity. They long for the time when things didn’t change as quickly or as much. Or they long to get back to simpler times and recapture simpler values. They seek simpler answers and a more specific plan for how to cope. But, the past is past and the future is more complex. We know more about the world, more about people, more about how things work, and what’s real and what’s myth. In my opinion it is time to cast off our longing for the past and our fear of the future and look to make changes within ourselves to adapt a world that is changing ever more rapidly.

Words we once considered offensive are no longer considered offensive to some but more offensive to others. Behaviors that once were unacceptable become more acceptable to a larger number of people. We should closely examine whether we are resisting these changes because they are remnants of a past tradition that no longer serves us as well, or because they are genuinely destructive to our future. What is often referred as elitism among urban people by those with a narrower cultural experience is probably no more than a recognition that change is less threatening to them, and they can’t understand why people who haven’t had their experiences are so resistant to change and so protective of values and traditions, which they see as having outlived their usefulness. To bridge the gap between the red and blue cultures will require greater understanding of one by the other and less resistance to changes which are almost sure to be upon us sooner or later and which may actually enhance our life experience.