What is wrong with politics?

Constitutional Republic

People that know me well know that I read.  I read a lot.  I read incessantly, I read everything and anything. I read everywhere, written by anyone, left, right or middle—it does not matter.

I long ago came to the conclusion that whether or not I agree with the points made by an author, this should not be the guiding principal of what I choose to read.  I find that, in fact, I learn the most when I read things I do not innately agree with.  In reading the contrasting opinions of others, and for the most part with the intent of maintain an open mind, I can try to compare their journey of understanding, expressed in their logic, if it exists, and either validate, or repudiate, parts of my own logic. Hopefully, coming to a better understanding and opinion myself.

Whats the problem?

I am not so sure that this is what people really do anymore!  It seems to me more and more people are only interested in letting someone else tell them what to think!

Recently, I have seen a series of articles, from both sides, trying to answer the question of what is wrong with our political system.   Each side is spending lots of effort, and ink (or electronic bits), explaining how the system is not working because the other side is conspiring to subvert the system to harm something or someone, or to benefit something or someone at our expense.  They often formulate the basic justification as this is clear because we are not getting what we want from the system.

Wrong Premise

The problem for me, as I see it, is the entire premise is wrong!  By starting with the logic that something is wrong because we (pick either side in the argument) are not getting what we want, may be logical but it is not accurate on two levels.  First, the assumption that the system is designed to give us something that we want in the first place, is not a correct assumption.  Second, the idea that the system is designed so that whatever the majority wants is to be provided to us by the government, is also not true.

System is working fine

The reality is that our political system is still, for the most part, working as it was designed despite the slow erosion of some of the original checks and balances over the past seventy-five years.  If you doubt this premise, read any of the biographies of Washington, Adams, Jefferson, Monroe, or Franklin and it will quickly become quite obvious that this was the design.

No, the system is still working just as it was intended.  The problem is not the system. Although, if we do not begin to understand the impact of the gradual changes we have made, soon this may not be the case.  The problem with the system is we are now starting to get what we want, and compounding this problem we have been for the last fifty or sixty years.  We are, in every corner, probably right or wrong, getting too much.  No, it is not the system that is the problem it is:

  1. The changes we have allowed to be made to the original system have weakened the checks and balances on our own greed and avarice
  2. What we expect that we are due from the system has grown exponentially as we have gained more from the system

The system is being changed

Our system was designed to be based on part-time citizen politicians directly subject to the impact of the laws and policies they create, not a ruling elite political class exempt for their communities day to day trials and tribulations.  At the very beginning of the implementation of our new form of government, in April of 1789, the grand design of our form of government showed the promise of its innate slow and difficult process to sort out where power and responsibility resides and to make difficult the ability of the federal government to pass laws that affect us.  Rapidly, the two competing philosophies, which I believe are inherent in mankind, congealed into two political parties.  The federalists, who advocated a strong federal government authority to foment consistency, rapid growth, and strength, became one pole, and the republicans, who were concerned about the rise of a tyrannical aristocracy or hereditary monarchy developing a predatory system reducing the rights and prosperity of citizens through taxes and needless, unwanted, regulations who advocated for government controls closer to the people at the state level.

While for over sixty years our education system has taught more, and more, that we are a democracy, and that we are by nature a nation where it is the majority that rules, this was specifically and unequivocally not the government that the founders created.  We were, and to some extent remain, a constitutional republic.  The difference is; in a democracy people have a direct control through their vote, and in a constitutional republic the control is indirect through the election of officials who are supposed to weigh the will of the people against what is best for the country and consistent with the constitutional republican principals of our government as they make law and policy.

System is still fine—For Now!

Today we are clearly migrating away from some of these fundamental principals in two areas:

  1. We now, as a people, no longer understand the benefits of the constitutional republic and many, if not most, simply believe we are a democracy, and
  2. We have inadvertently allowed the creation of a stronger federal control by stimulating the creation of a full-time professional political class—potentially, just the kind of tyrannical aristocracy that Jefferson and Madison were so worried about at the beginning of America.

The question we all need to answer is, “Is this what we agree we truly need?”  If so, then we will have to accept the consequences of a pandering democratic machine continually taking prosperity from the individuals and granting it to the majority in exchange for the continuation of their livelihood as a full-time professional politician, and the continual erosion of the original system of government and its checks and balances on them and us.

If this is not what we agree we need, then there are some very hard choices and changes we will need to consider to recover the checks and balances.  Only then can we once again return to the constitutional republican form of government we had. If this is still what we want!  You see that is the question!

Still up to us to define our system for a while longer

The good thing is it is still up to us for a bit longer.  The more we continue the erosion of the checks and balances inherent in our original constitutional republic, the more we become a democracy.  At some point we will slip over the edge and soon, perhaps, there will be no going back short of another costly and divisive civil war.  If our leaders can develop a true process to decide this fundamental issue we may avoid a destructive conflict.

And the answer is?

So the answer to the question that headlines this article, “What is wrong with Politics?” is nothing at the moment, but stay tuned!

Yosemite now Santa Rita Jail: Green Energy here we go again

In July 2011, I wrote this short blurb about the solar project in Yosemite…

Just your average government project.

2800 Solar panels
Producing 12% of Yosemite’s electricity
Saving $50,000.00 per year
Cost $5.8 million in stimulus

And you wonder why the federal government is out of money and needs more debt! It will only take 116 years to recover the expense in savings. What is the life of a solar panel?
Could this kind of genius calculation explain the debt crisis?

What is the best, is our government, issue the EPA, are promoting this project on the local news!

And now today in the local paper is an article called, “Jail gets greener through own grid…” by Robert Jordan.
So the salient parts of this article are these…

The solar “grid” cost $11.7 million to build.  The funding came from a Department of Energy grant of $6.9 million, $2 million from the California Energy Commission, and $2.5 million in political extortion, oops I mean a grant from PG&E.

And, do you know what this phenomenal project will deliver in annual savings? At least $100,000 per year is the way they put it.  Now $11.7 million, divided by $100,000 equals — I better get out my calculator because this is obviously higher math — Oh yeah… it will take 117 years for the payback for this expense…

It is amazing how much you can spend for the good of the world when it is not your money!

Does anyone need to say any more about this foolishness?

Stupidity or Duplicity: WE pay anyway!

Click to link to original ABC News Article

Do you think they just don’t get it? In a supposed attempt to find some “middle-ground” in order to make the “middle-men” whole as to the cost of birth control, the administration is acting like we are in the “middle-ages”—all poor and uneducated. First, the administration’s talking heads took the position that the cost of free birth control would be a savings for employers, now forced to pay for it because, pregnancies and abortions are much more expensive. The employers now have to pay for a product, to prevent a cost that their health plan is paying. The premise is that paying the lower cost birth control will lower the plan’s coverage cost and the health plan will then, in turn, lower the premium cost to the employers—not hardly!

Also, there is a big assumption that the rate of single mother and unwanted pregnancies will decrease because of improved access to birth control. I am not sure I agree with this either. Free or subsidized birth control is widely available, it just is not conveniently available everywhere. I am not attacking a woman’s right to have access to birth control. We have a very strong habit, of late, of confusing the discussion of access with no-cost access. It is the no-cost access I have the most problem with. The cost is not free, we all end up paying for it anyway, and the system that is based on mandates, despite the method of the mandate naturally inject inefficiencies and vagaries of control, so that a significantly reduced percentage of dollars spent actually go to pay for the good or service. Look at the healthcare debate numbers from the president’s round table at Blair House with republicans in 2010. By numerous authorities, from both sides of the aisle, only about 35 – 45 cents on the dollar ever make it to real care. So why do we do it this way?

The government now classifies birth control as preventative care, because the ACA or Obamacare requires health plans to cover prevention at no cost. Exercise prevents heart disease, so this should be classified as prevention, as well. Health plans really should cover gym membership at no cost. And, you know having fresh fruit prevents scurvy, health plans need to cover free fruit. Listening to peaceful music lowers stress levels, and therefor prevents high blood pressure and the risk of stroke so good music systems are preventative and should also be covered for free. And of course a warm, comfortable home is clearly preventative to lots and lots of health related problems so I guess “health plans” should provide this as well. This is the same issue I have with the insurance purchase mandate and the rationalization of its constitutionality by the extension of federal power justified by pointing to prior extensions of federal power under the commerce clause.

It is not the idea of helping people; women in this case, get access to care that is the issue. It is the duplicitousness of the need for access by extension to now mean everybody else needs to pay for it, and the effort to obscure the nature of the extension logic that I am finding most troubling. The argument that is being used, now over and over again, goes like this . . . Someone, or some group, needs access to something—or for political gain, we can convince them that they are being discriminated against because they do not have this access and we want to give them access so they will see us as looking out for them, what we are providing is now considered preventative, we passed the law that says if its preventative it must be provided at no cost, ipso facto, you have to pay for this group to get it because it’s the law.

The straw that is breaking the back of many on this issue is now that this administration is saying well, since you are objecting to assuming this cost, we, the government, will find some way to make you whole here, you won’t have to shoulder the cost. Everything the government does cost the people of the United States money. No matter how they try to spin this, it costs us money. We are the government and we are the only source of money. So nothing they can do at the federal level is going to make anyone whole without laying it on the backs of all of us in the long run. Simply saying OK we will let you get a credit to reduce something you pay us over here, just reduces the income the federal government needs to pay what is already spent ten years ago. Do they really think we believe they will not increase fees somewhere else to get the money? If they lay it on the back of some other industry, they are going to increase prices that we all pay so once again it is out of our pockets. There is no escape from zero-sum economics. Even if they just print new money out of thin air, as they have been doing for forty years now, it reduces the buying power of our currency and prices go up, again we pay.

Finally, it is time we realize that we only have finite resources, and everything we do costs us in one way or another. Paying for birth control for everyone is just reducing the money we need to pay for everything else. People are now living much longer and as we crossed from average life expectancy at the mid-seventies to where we are not in the eighties, the average cost of care has rapidly increased. Now we demand that heal plans no longer just cover basic life-saving procedures, we expect they also cover quality of life items as well. The technologies we have developed to make this real gain in median life span is based on very expensive technologies adding to the costs, and the magic bio-chemical bullets we have developed to fight the war with the other species, like bacteria, and viruses, etc. are increasingly costing more and causing more side effects as these species have evolved to be resistant. All of this, with some other reasons as well, is causing the steadily increasing cost for our healthcare. Sometime soon we need to begin to discriminate at what point people are individually responsible for at least some of these costs.

So I wonder are the people coming up with these ideas really this stupid. If they are not stupid, then do they think we are this stupid? Or are they simply Machiavellian? My initial reaction is they are not smart enough to be this duplicitous, but perhaps I am mistaken!

Supreme Court to hear arguments on Obamacare: An enigma, based on a canard, wrapped in a conundrum.

Enigma, based on a canard, wrapped in a conundrum!

March 26, 27, and 28 2012, become the next significant dates in the future of the Affordable Care Act (ACA or Obamacare).  It is on these dates a little over two weeks from now that the Supreme Court will hear arguments both challenging the constitutionality of part of the legislation and arguments as to why the court should uphold the legislation. For most of us on both sides of the aisle, involved in the debate over healthcare reform, we see this as an enigma, for widely opposite reasons, as to how we have arrived today at this point.

For those of you that are interested in this current debate, you can find a number of places to read the arguments, or you can simply read someone else’s interpretation of the arguments.  Here, are some links:

My advice to you is, don’t rely on others interpretations, read the source documents for yourself.  Everyone, including me, are bringing their own bias to their review; some unintentionally, many intentionally.  This has become the partisan issue of this decade.  None of these arguments is a simple read for the non-lawyer.  I would argue that it is the view of a non-lawyer, the view of a common citizen that is now most required to be heard.  The lawyers now are so wrapped up in the history of all judicial actions, and their arguments are both driven by, and necessarily constrained by, the rulings that have preceded; the legal principle of stare decisis—Latin for stand by the decision—the obligation for the court to uphold what has gone before.  It is now, that someone, not a lawyer, needs truly to ask what is the right principle.

As James Madison wrote, “The powers delegated by the proposed Constitution to the federal government are few and defined. Those which are to remain in the State governments are numerous and indefinite.” This
constitutionally mandated division of authority was “adopted by the Framers to ensure protection of our fundamental liberties.”

I am not a lawyer, and I have my own biases.  I write this, not to tell you what to think, but to tell you how I have chosen to understand this issue.  I hope you will use this as a stimulus to plot your own quest for an answer.  We are at a point in our history that if we do not reengage as citizens, in an active role, in the formation of our governance, we will find that the government that we end up with, will be consumed by forces we do not want, nor can we afford.   The power of our “constitutional republican” form of government is based that the power comes from the people, is enacted by our representative people (the extension of us, not a special or elite class), and is for the benefit of us, the people. We are now at a critical juncture, where we, as a people, need to review the decisions we have allowed to be made and expanded like weeds in an uncultivated field, over the past seventy years.  We need to determine if what we now have accurately reflects what we intended; and if not, we need to no-longer allow the subtle expansion, and extension of federal powers, to continue indeterminately.

I am not arguing if we do, or we do not, agree with the constitutionality of the mandate in the Affordable Care Act.  That argument should come, but it needs to come after we determine if the precedent decisions, beginning with the pivotal case of Wickard v. Filburn reflect what we intended: and if it does not, then the pending arguments will continue to leave us sliding down the slope.  If it does, then we all must now accept the ramifications and understand the fundamental change to our current constitutional republican form of government that will fall out of these next actions.

For a review of the historical actions that have led to the current belief that the Federal Government can enact such a law, feel free to read my prior articles: Health Care Mandate and the Commerce Clause Articles, Entitlement vs. Safety Net: It’s not a matter of degree!, U.S. District Court of Appeals “Reaches” for the answer to the purchase mandate, and ACA, Politics, Mandates and the Commerce Clause.

The Arguments

As the Patient Protection and Affordable Care Act was passed, the controversy and the challenge began immediately.  Within hours of passage, states’ legislatures and attorneys-general began filing actions to block its implementation.  Some of these actions were new state laws that helped limit the laws effect.  But, the more effective challenges were the suits filed by the states to block the federal law’s implementation.

Numerous arguments were originally made to challenge the law.  Arguments that the act violated the constitutional right of privacy, violated the free exercise of religion, and even violated the thirteenth amendment prohibiting slavery, along with many others, were made.  As the cases have moved through the judicial system, the plethora of arguments has continually been pared down to a remaining few.  In a little over two weeks, the Supreme Court has agreed to hear a subset of the original arguments.

There are now two main questions pending from the original challenges and two additional questions posed by the court itself.

  • Remaining Questions
  1. Does the Individual Mandate clause exceed congress’s enumerated powers?
  2. Does the expansion of eligibility of Medicaid to include all legal citizens less than 65 years old and earning less than 135% of Federal Poverty Level (FPL)—approximately $37,500.00 per year—force the states to implement what is federal legislative power thereby violating the separation of powers principle?
  • Additional Questions
  1. Does the Tax Anti-Injunction Act bar the court from hearing the case?
  2. Is the mandated coverage constitutionality question severable from the remainder of the act?

Supreme Questions

In reading through the briefs and the summaries, available through the links above, I see the arguments breaking down this way. On the side to overturn the legislation, the arguments are framed as to whether, or not, the original intention of the commerce clause in the constitution, grants this right to the federal government, or does it remain as a right of the people i.e. the individual states.  The arguments for the act to be upheld seem to me based on legal tricks and gimmicks to justify the extension of the power based solely on the extensions that have gone before.  Perhaps this is not fair but I believe the fundamental question needs to supersede those decisions that have gone before, with which I think most Americans would also disagree.  I think it is mere trickery to cite one bad ruling as the basis for another if the root decision is in question.

Despite the tricks and histrionics on both sides, the basic argument comes down to, is it the federal government, or the state government, that have the authority to enact  legislation governing personal behavior.  The main argument for this federal right is the precedent cases, not the root argument of what the Commerce Clause actually means.  For me, it is this framing of the debate that is now the problem.  If the arguments are bound by the principle of stare decisis, then I believe the logical conclusion will be a 5 to 4 decision in favor of upholding the mandate in the ACA.  If the issues revert to the principal determination of whether, or not, the commerce clause was framed to grant any of the rights, now assumed by precedent, to the federal government, then I think we will have a 5 to 4 decision overturning at least the mandate portion of the law.  And, without the mandate, most believe that the ACA law becomes moot.

The secondary argument made by those in favor of the mandate follows the “everything now is interstate commerce” logic because if people do not conform to this mandated behavior then their actions become a fiscal drain on the rest of us, because either the industry, or the government now must go provide for their needs, and the cost will get passed back to the rest of us.  But, this argument is a canard.  The cost to us for lack of action by others is a real cost, but it is predicated by a government action of over forty years ago that mandates that we are going to provide the services in the second place when the individual fails to take appropriate steps to be responsible for their own needs in the first place.  By the way, I am not talking about eliminating a safety net.  We need a safety net!  Safety nets should be provided for the helpless.  What we have today is not a safety net, it is an entitlement, and while some helpless get benefit, predominantly it is providing support for the clueless and the worthless.

The recent Birth Control debate is a timely example.  Forget the religious argument; this is mere political theater at this point.  The argument goes like this.

Someone, employers or insurance companies, i.e. us due to cost shifting, must pay for birth control for women because it costs too much and they cannot afford it.  They will have sex and some will get pregnant.  They will then have babies because they cannot afford, or do not want, to get abortions. Then the government will have to pay to birth these children and support the mothers and their children causing a larger fiscal drain than the cost of birth control itself.

This is a canard because the requirement for the cost for the voluntary pleasurable act of sex, a biological drive, that may result in pregnancy and birth of a child, only places the cost of birth and support of the mother, and child, on us, because we have chosen to accept the responsibility of these costs in the first place.  I am not arguing whether or not we should do this.  I am simply saying we made a choice to do this, and to take the responsibility for the act off the participants and place it squarely in our collective laps.  To swallow the argument that one now begets the other is to believe that the requirement for us to absolve the participants of their personal responsibility and accept the burden of their actions is somehow inviolate and must remain so for all time.  This is simply false.

The humanistic, moral and ethical implications aside, we should be under no perpetual obligation not to revisit the original decision as to who is responsible for what in society.  There are many other cultures around the world that do not accept this responsibility at all, and often these acts result in poverty, pain and in some cases death to mothers and children.  We choose to be more humanistic, and believe ourselves more moral and ethical, and have chosen to believe that we are obligated to support those that will not support themselves.  Understand I am not arguing we should not do these things, I am just pointing out that this decision is both cause and effect on many others we now face.  It is political gamesmanship to present one side of a justification as fait a compli, this is routinely done in the body politic these days, and often fools us into limiting the debate and choices, yielding ineffectual results.

Another argument by the supporters of the ACA is based on the following quote,

“Opponents of the health care law say that if it is upheld, then government can force people to buy an American car or eat broccoli.  But, a person can opt not to drive a car or eat vegetables: no one realistically can opt out of health care.”

This argument follows, what is called in sales, “the Reverse Ben Franklin Close.”  In effect, this technique is geared to obscure the argument, by saying that you can be forced to buy a car and to eat broccoli if you are also forced to buy healthcare insurance, but unlike the others, you do need health care.  In effect, leaving the impression that they are not equivalent and therefore, the worry is not valid. The technique, not the argument, obscures the real issue.  Yes, you almost certainly will need healthcare as you live, and your need will grow proportionally to the length of time you live. But, the argument is that we have to pay for your healthcare not the fact that you need healthcare and don’t need broccoli or to drive.  We don’t pay for your car or vegetables.  That is ultimately the key question.  It is not the benefit of the ACA. The question is, at what point does a safety net come into play to serve the needs of the helpless.  How do we define the helpless?  And, how do we filter out the burden of the clueless and the worthless? Currently we have chosen to propound the philosophy that all people are now entitled to healthcare, regardless of their personal choices or life planning.  We do not as yet entitle people to a car of free vegetables.  The worry by some is that this is coming next.

Does the Individual Mandate exceed congress’s enumerated powers?

This question has become the key question and the key argument for, and against, the viability and continuance of this legislation.  Is the federal government authorized to require citizens to purchase health care and in effect penalize them in the form of a tax or a penalty if they do not buy insurance?  The crux of the argument, for this federal power, is a U.S. Supreme Court case that was argued in 1942, Wickard v. Filburn, 317 U.S. 111.  I have written about the case in my article, Health Care Mandate and the Commerce Clause. I will not rehash the case here but encourage you to go read the article and read the link to the case.

In reading this case, and the other cases that piggybacked on top of Wickard to justify the expansion of federal power, I have come to my own conclusions.  As you read those articles, you will find clearly what I believe.  The question is not what I believe, it is what you believe, and more importantly, what do we, the people, believe is the appropriate border line between where the state’s power begins and the federal power ends.

Does the expansion of eligibility of Medicaid to include all legal citizens less than 65 years old and earning less than 135% of Federal Poverty Level (FPL)—approximately $37,500.00 per year—force the states to implement what is federal legislative power thereby violating the separation of powers principle?

This issue in the end is a non-issue.  The crux of this argument hinges on one of the same tenants as the Mandate—where do the federal powers end and the state powers begin.  This argument began at the formation of the constitution in Philadelphia, and has continued to rage since the formation of the government, and the election of George Washington as the first president.  It was the main factor in the initial fractionalization of the founding coalition government in Washington’s first term, into one that had the federalists, headed by the strong central government vision of Alexander Hamilton, on one side, and the republicans, headed by the anti-monarchists, state’s rights principals of Madison and Jefferson, on the other side

Medicaid is a federal program.  In fact, Medicaid is an extension of Social Security, as is Medicare.  But, if you listen to the current administration they want it both ways.  On the one hand, the president calls Medicaid a state program, but, on the other hand, he wants the federal government to set the rules.  The state governors clearly and uniformly call Medicaid a federal program, and since it is breaking the banks of the states, would prefer to remove the expense from their books.  The conundrum is because in 1965, as President Johnson was framing the extension of the Social Security Act, the legislators know that they had to make Medicaid a “state” program or it would violate the separation of powers principles.

Does the Anti-Injunction Act bar the court from hearing the case?

This argument was raised in the case I discuss in U.S. District Court of Appeals “Reaches” for the answer to the purchase mandate.  In essence, there is an argument that the court should not be able to hear the case, because this act prohibits courts from preemptively enjoining any federal collection of tax revenue until after the revenue is collected.  The base argument is the court cannot enjoin the federal revenue stream until there is real harm.  I actually think the premise of this argument restricting courts below the Supreme Court is valid.  This act provides a check on the courts by eliminating a mechanism where lower courts could effectively shut down the federal government by strangling its cash flow.  I do not feel the same way at the level of the Supreme Court, in that, if it also binds the Supreme Court, the law would grant an unequal power to congress to prevent the Supreme Court from ruling on the constitutionality of some laws prior to harm being done. The Supreme Court is supposed to be the peoples effective check on the powers of congress to create bad law. I don’t think most of the justices are inclined to agree that Congress can pass a law that prohibits them from reviewing congressional actions.

Is the mandated coverage constitutionality question severable from the remainder of the act?

This is another interesting set of arguments and important to those arguing for and against the legislation.  When congress wrote this law they specifically excluded a clause that would allow for any section of the code that was found unlawful, or unconstitutional not to affect the other provisions.  So, on the face it would be argued that it was the intention of congress that all part of this law stands together, and if one part falls they all fall.  Of course, the counter argument is that since there is no statement that says that it all stands as one and it is not dividable on the merits then it must be severable.  I believe this argument is window dressing for the most part.  I believe the justices will rule with a significant majority that the law is severable.

In the end, the main piece is the Mandate. If the mandate falls, for the most part, the law falls.  If the mandate stands, than the law stands: another step in the additional extension of power to the federal government will occur and despite the contrite arguments from both sides, this new precedent will become the stage for another expansion later on.  If the mandate stands, Hamilton and his federalists would have been thrilled, and Madison,  Jefferson, and their republicans, would have been horrified.

The conundrum is that despite our best intentions, intelligence, humanity, economic analysis, and strong convictions, we have now created a major problem based on fundamental disagreement over what the founders intended and whether we are to stay true to this intention or if we should feel free to change it at will.  Frank Zappa once said, “The crux of the biscuit is the apostrophe!”  (There may be a few of you that actually know what this was in reference too, and for those that do, I apologize for the original context. If you know feel free to post in the comments area. I will post the explanation in a few days if others do not.)  I am using the statement to illustrate that the apostrophe of this conundrum is at the point that helping some people becomes detrimental to all people.  Spock said to Kirk, “Sometimes the needs of the many outweigh the needs of the few, or the one.”  This is a loaded statement, as the needs of the many may be affected in very dangerous and deleterious ways by catering to the needs of the many.  Sometimes, as in this case, society gets to the point where the definition of what is needed needs to be clear and it is imperative to prioritize the fundamental needs and eliminate the extraneous wants.

In the end, we are faced with an enigma, based on a canard, wrapped in a conundrum!  I hope we have the national and personal character to address the problems and find real resolutions.

 Note: I hope this article at least provides a process for you to seek your own answer.  I am sure once again we will be much divided, but perhaps the arguments can become fundamental and appropriate, and no longer tangential, and irrelevant. I ask you to come back and post your thoughts in the comment section.

I long for a Citizen Politician

Where have all the good men gone?

As I watch the current primary political spectacle, and await, with more than a modicum of trepidation, the coming presidential election of 2012, I long for the emergence of a “citizen politician” like those that founded, what once was, this great nation.  Where have they gone?  What has happened to our national values, that we no longer can produce such remarkable and dedicated individuals?  Have we so corrupted the elegant system, designed by the framers, that we simply cannot find those truly fit to serve the nation, instead of serving their own, or some subgroups desires and wishes.  Has the process been so corrupted that the simple citizens we most desire, and who would best serve, will not stand up to our current infinite scrutiny, or will not run because they do not want such public ablation of their character? We once had a collection of people, who felt that it was either their destiny, or their obligation, to serve their neighbors to build a better life for all, and to develop systems to assure that character, integrity, and nobles oblige, were the justifications for their fitness.

Recently, I have wondered, what were the characteristics that defined this group of remarkable men, those who risked and sacrificed so much to build this nation? Over the past year I have read a number of biographies of our founding fathers; men like George Washington, Thomas Jefferson, John Adams, James Madison, Alexander Hamilton, and Benjamin Franklin.  Each in its own way revealed bits of what united these men in such a grand and ambitious undertaking.  In another way, it has led me to wonder if we still have the tools in place to create others like these men, or if the circumstances of our modern world, our changed mores, faith, family, values, and education system have been altered so profoundly that we no longer build the necessary combinations of character, strength, conviction, patriotism, and dedication to generate leaders with a sense of purpose, responsibility, and faith in something grander than themselves with unshakeable and selfless commitment to their country and fellow citizens.  I guess the real question is, are we lost?

Our First President

George Washington was a complicated and interesting man.  All of us, who have studied history in modern schools, have read about Washington as the father of our nation, but the image of Washington that I learned in school both understates his contribution to the birth of this nation and fills our head with minor and false facts (like the story of the cherry tree) that do not provide a true measure of the man. To the continental colonists at the end of the revolution, George Washington, was more than any other, the father of this nation.

As the country was being forged, Washington, and many others just like him, felt a profound sense of duty to the rest of Americans to fight to the death against tyranny and eventually to build a great form of government to perpetually protect the nation’s people from the resurgence of tyranny from both abroad and within.  Today, we often hear as to what the framers felt was the role of faith and God in the creation, prosperity, and future of our nation.  Today, in our modern world of agenda based spin, we hear polar opposite views.  On the one hand, it is stated that the founders believed there is no role for religion in government.  Religion was not to have any part in the governance of the nation. And at the fringe, there are those that profess that it is a violation of the constitution to even allow and discussion, mention, or intimation of religion in any public venue, action, or event.  On another hand, we hear that religion is a clear part of our government, and became the basis for the governing system we chose. Further, at the fringe of this side, we hear that this, or that, religious view was inculcated into the constitution to promote this or that moral value.  Like everything else today, the truth is much more complicated than a sound-bite, and lies somewhere, nuanced, in the middle of the argument.

President Washington felt that National Policy needed to be rooted in private morality, which relied on “the eternal rules of order and right . . . ordained by heaven itself.” It was in consideration of the grand opportunity wrested by the sacrifice of the American people, through the providential victory of the revolution against England, that Washington’s held the view that this opportunity was granted by the unknown machinations of an almighty God. Washington wrote, “The sacred fire of liberty, and the destiny of the republican model of government are justly and considered as deeply, perhaps as finally staked, on the experiment entrusted to the hands of the American people.”

Washington and many of the other founders were big believers in the hands of some higher power guiding them to their destiny.  They also felt that only good and just men could reap the benefit of these grants from some higher power.  They believed in strength, justice, and the power of courage and conviction.  They were humanists, who felt it was their duty to help the downtrodden and the weak.  But, we should not confuse this humanistic view with their additional view that people were also individually responsible for their own destiny and lot in life.  As an example, Washington also wrote,

“Of all the dispositions and habits which lead to political prosperity; religion and morality are indispensable supports.”

Washington also wrote,

“Let no one go hungry away . . . provided it does not encourage in them idleness.”

The New Constitution

In 1787, as the continental congress was meeting to establish the foundation for a new and necessary form of government to control this new nation, there was significant controversy.  Read either of the recent biographies of George Washington, Washington, by Ron Chernow, or of John and Abigail Adams, First Family, by Joseph Ellis and you will see that the current level of histrionics, division, diatribe, and intrigue are nothing new.  Further, most of America had no knowledge of what was transpiring inside the State House in Philadelphia, in 1787, or what kind of government was being developed by the men who had assembled to compose our new nation.  The mystery was so complete that after the vote by the members of the congress in approval of the new constitution, Benjamin Franklin reportedly was approached by Elizabeth Powell as he left the State House.  When she saw Franklin, she is reported to have inquired as to what form of government had been produced by the members inside the convention.  Franklin responded, “A republic, madam, if you can keep it!”

Like politics today, this new constitution was not immediately revered by all.

George Mason, a friend of George Washington, declared that the new form of government “. . . would end either, in a monarchy, or a tyrannical aristocracy.”

Looking at the current state of America and its politics I think many would argue it has met Mason’s fate. It just depends on which side of the political spectrum one is, as to whether or not it is now ended as monarchy or tyrannical aristocracy—Occupy Anywhere anyone?

Citizen Politicians

I think we need to find a way to alter the current political selection process, and fundamentally eliminate the position of professional politician from our culture and revert to the original concept of government of the people, by the people, and for the people.  The “by the people” part was not designed to be rule by a professional political class as we are today.  Just what was the concept of citizen politicians at the time of the founding?

Many of the founders regarded any open interest in power as unbecoming of a gentleman. As a result, people like Washington, Adams, and Jefferson preferred to be drawn reluctantly from private life by the irresistible summons of public service.  Ron Chernow writes in his book, Washington, “George Washington felt even to say the word, president, or to merely broach the topic, even in the strictest confidence with friends would seem to betray some secret craving for the office on his part.” Chernow reports that Washington confessed his quandary to Alexander Hamilton in a letter where he said,

“For situated as I am, I could hardly bring the question into the slightest discussion, or ask an opinion, even in the most confidential manner, without betraying, in my judgment, some impropriety of conduct.”

John Adams and most of the founding presidents, all felt that nobles oblige, should be the guiding sentiment for their service.  As such, they did not believe that a candidate should campaign for the office.  They felt that people should be elected because their prior contributions and actions were so remarkable, as to render the populace unable to see any another as capable of assuming and performing in the office. As such, it was the fact that they had to go and actively campaign for such a position of power innately under-scored their lack of suitability for the job in the first place.

The solemn and grave nature of properly taking this almighty gift of independence and effectively creating and implementing a new government, worthy of the people who had sacrificed so much for this opportunity, led James Madison to create a strong metaphor for Washington to use to captivate the populace.  Madison wrote,

“. . . to be shipwrecked in sight of the port would be the severest of all possible aggravations to our misery.”

Meaning, that after we had collectively sacrificed so much, cut our ties to England, and now were left with such difficulty and strife if we fail to provide a just form of government for the people would just be the worst sort of failure and pain.  Madison’s view was predicated on the sacrifices and misery suffered by the new Americans in 1787.  How much more has been sacrificed and suffered in this quest to live up to our potential, and love of country and its promise in the past 225 years? Are our current politicians living up to the sacrifice of those who have gone before?

Nobles Oblige Often Led to Financial Hardship and Ruin.

For most of the first 152 years, elected public service was a significant economic burden. Many left political office with their business and personal financial interests in significant disarray.  These individuals accepted the service to their nation as a patriotic duty or to establish a historical place for their family name.  As an example, at the time Washington became our first president, his prior service in obligation to the needs of his forming country had left is estate on the edge of financial ruin.  As he was being elected president, he was left with no choice but to put his extensive land holdings in Ohio up for sale and to seek a loan of 500 pounds from Captain Richard Conway of Alexandria Va. Shortly after he made this initial request, he had to ask for an additional 100 pounds from Conway, to defray the cost of moving to New York and the cost of lodging so he could assume the new presidency.  So committed to the service to his nation, Washington still felt it was his duty, as he had throughout the Revolutionary war, to forgo any salary. Despite his dire fiscal situation, Washington informed congress of his intent.  Luckily for Washington, congress insisted that he accept his salary, so in some small measure, the fiscal burden was somewhat ameliorated.  Once again, when Washington left office, his personal fortunes had continued to suffer as a result of the demands of service to his country.

The Coming Storm

As I look at this year’s presidential primary election, and listen to both sides of the debates, I wonder if we have, in Madison’s words, been left shipwrecked in sight of our port.  I find myself more and more longing for a Washington, an Adams, a Jefferson, a Madison, a Monroe, a Jackson, or a Lincoln to emerge.  I yearn for some citizen politician, motivated by their love of country, their own nobles oblige, some sense of destiny to arise from the depths and steer us from the fate of the looming rocky shore. I desire the rise of a true citizen politician, one who feels it is unbecoming of the character of a gentleman to seek power or political office.  I know there are those who believe that in this larger and more expansive world, politicians must campaign actively and very extensively and obtrusively be in our face to gain election. I wonder, is this really and sadly the case?

We have had a few this political cycle whose names have been floated for office, individuals apparently not overtly seeking election—people like: Chris Christie, Paul Ryan, and Marco Rubio.  Each of them to date has rebuffed the invitation to lead their party in this election for various reasons.  Despite their apparent reticence, there are some who are still actively interested in wresting them as candidates to the national stage.  Despite their resistance, feigned or real, sadly, they are also firmly entrenched as members of the professional political class.  Where are the real citizen politicians?  The ones who would be dragged to this lofty, powerful perch as a result of their sense of duty and obligation?  Can we not find some method to identify them and bring them to the national attention without the need for a popularity contest composed of little more than national character assassination? Though I do which this is not the case, perhaps it is simply a pipe dream to believe once again we have and can find such men.

I now most fervently hope that we will not soon be laying plans for all of our children to be reading Daniel Defoe’s, 1919 work, Robinson Caruso, as our new national survival guide!

Entitlement vs. Safety Net: It’s not a matter of degree!

Well, let me start with this disclaimer! I am not anti-social security, anti-Medicare or anti-Medicaid…  I am saying this in advance of the e-mails I know I will get from the people who will not read the article clearly and will stop thinking just as soon as they believe one of their special programs might be threatened.  I believe very strongly that we need a safety net—it’s just the current system we have is no longer a safety net.

The headline in my local paper says Brown seeking Medi-Cal cuts: Governor requests flexibility from the White House.  For those not in California, Brown is our Governor Jerry Brown and Medi-Cal is California’s implementation of Medicaid.

I am going to keep this short and sweet, if I can.  We should comment Governor Brown for taking the initiative to address the overwhelming costs of Medi-Cal (Medicaid) that is bankrupting our state.  California is in a much worse position than most of the other states because, as the Governor found out when he took office, California is in the top one or two of any state in any measure of the amount of entitlements we are providing to our population per capita. In his first budget, Gov. Brown took on this issue and began the effort of reducing these most generous programs, which may have made sense when we were one of the richest economies in the nation, to the median benefits offer of all the national state programs.  I think this is a very pragmatic, and still generous, approach considering we are now the top state in the national measure when you look at fiscal insolvency.

We need to address this issue now as the time has run out as our deficit build and we become one of the most cost ineffective places for business in a national economy that is one of the most cost ineffective locations to do business on the planet.  Kudos to Governor Brown for taking these very hard steps directly in the hard face of his own parties’ public ideology and attempting to get to a solution to this massive problem.

But overall the problem is not one of just Medi-Cal in California. It is a much larger problem, a systemic one. It is a problem that traverses all the programs including Medicare and Social Security. Beginning with the Social Security, conceived as a temporary safety net program to help the aged who had their savings and investments devastated by the one-two punch of the collapse of the stock market followed quickly by the depression as a result of the great drought induced dust bowl in the mid-west. In turn, Social Security and the myriad programs that have followed have evolved from that of a simple safety net. Originally, first seniors, and then others, could look to these safety nets as a small aid to what they could earn and save for themselves to tide them through a short difficult time that may occur beyond their real ability to plan. Now with the extension of Social Security to include Medicare and Medicaid, these programs are not viewed as a safety measure but as a replacement.

If we look to Medicare as an example, it can be argued that it is a vital insurance program to support the healthcare needs of our aging population and our disabled. And for some this is clearly the case. But it can also be argued that for many, even though the checks are being written to providers covering their health care needs in later years, if this is really supposed to be a safety net, the government is not paying for their health care; it is paying for the purchase of that flat panel TV when I was forty-five, or the vacations I took, or the new car I purchased every four years, or some other expense I would not have made if I had not had the expectation of the government picking up the tab for my potential catastrophic healthcare needs in my last five years of life.

I know the former discussion is not a pleasant one to have as it brings us back to the point that our actions today have ramifications for tomorrow. In the generation prior to mine, they had the belief that they needed to save much of their excess money for a rainy day. We have come to believe that the rain is now offset by our wonderful and blatantly generous Uncle Sam. So, we are empowered by the change from the safety net to that of an entitlement, to believe we are OK to purchase that vacation home, instead of saving the money because when, not if, we get sick, Medicare will take care of it. I remember my father preaching to me siblings and I in the 1960s that we should never count on these programs because a.) It was our responsibility to plan and pay for ourselves and family—not our neighbors responsibility, and b.) The government will probably not have the money when we need it as this system just won’t work.

Well thanks for the advice Dad, I took it to heart and have followed your example. But, despite my savings we, the citizens of the U.S. and of California are at the point you so correctly predicted and poor California’s Governor Jerry Brown now has to be the first state leader to start to take away all the things we have been trained to be dependent on. You see much of these expenses are no longer about emergencies and simply providing for a base existence, they are now becoming more about quality of life. It is not enough to provide basic services for the poor; we need to also give them cell phones.

I don’t want to see people suffer, and I don’t want to deprive people of some form of basic existence. But with the coffers bleeding cash at a pace that is now in excess of what we can produce on an annual basis we need to start to make distinctions between, emergency necessary for life services and those services that provide more for the quality of life! I commend Governor Brown, for taking these steps. I know they are not easy for him because of his strong humanitarian heart. I am glad he was not just imbued by our creator with that humanitarian heart but also received the gift of a great mind that recognizes we need to find pragmatic adjustment and exceptional courage to take the unpopular steps to find a solution. With this accolade also comes caution. We need to remember that even Governor Brown is human, and is in a system that will require him to make some decisions that he and the rest of us will not like, simply to get part of this done. We can expect all the purists to take shots at every single deficiency and change from all sides with no recognition as to the realty of a public and political governmental process.

Regardless, I will say I appreciate what he is trying to do, and will attempt, even when he make decisions, like High Speed Rail, that I fundamentally disagree with, that he is doing this based on his befief that it will contribute overall to the solution of this complicated equation for the viability of California and its citizens.

Rising Gas Prices: Welcome to the global economy

Like most things in which our federal government has inserted itself, the issue over the rise in U.S. gasoline prices has become a very complicated one.  Like almost everything else in history, the more that the government inserts itself, the perceived benefits are overwhelmed by the unintended consequences.  Here is yet another cautionary tale.  

(Note: I am analyzing from a California perspective in order to understand the combined effects at the highest level and since this is where I live at the moment, I experience the issue in this way every day—your state’s fees may vary but I would guess your personal experience will be the same!)

Source: GasBuddy.com

In 2004, then California Attorney General, Bill Lockyer, updated his 2000 report on Gasoline Prices in California.  Looking back this is an interesting read as we watch gas prices rise beyond $4.00 on their way to, as some are predicting, to as high as $6.00, if not even higher.

Evil Oil Companies Reap Big Profits Cause Gas Prices to Spike!

What is fascinating about both the current concern over the rise in gas prices and the report published by AG Lockyer is the consistent amount of spin on what it was that was causing the rise in prices.  As we move into the next few weeks and months, once again, we will hear from the media, and many talking heads, how this is all the “evil” oil companies fault.  How they are making record profits and they are simply preying upon the people of California, or on the national scale the U.S. citizens, to enrich their shareholders and continue to pay huge salaries and bonuses to the 1%’ers and leaving the 99%’ers in a continually worsening position. But there is a big problem with this spin!  For the most part, it is just not true.

Look, I have no vested interest in the oil companies and I am by no means a fan of some of what they do sometimes.  Sure, oil companies make a huge amount of profits when you look at the overall dollars but, like other such vilified industries and their executives including, big Pharma, and insurance companies among others, the percentage of profit is ridiculously small, when compared to other businesses and most small businesses.  More telling, however, is that the real profit built into the gas and oil supply chain has reduced significantly since Lockyer published his updated report in 2004.  The enclosed chart shows the break out of costs for a gallon of gasoline as reported by the California Energy Commission in 2004 and again as of today in 2012.  What is startling is that the “evil” oil companies’ and refineries have reduced the cost and profit part of the price over 27% while the state of CA has increased their percentage per gallon over 42% and the federal government has also increased their take per gallon by 20%.

Source: Author

Another, great misconception—perhaps misrepresentation?—is that the cost per gallon is driven solely by the per barrel price of crude oil.  Well again, if you look at the table I prepared, you see that if that logic was, in fact, correct, the price per gallon would now be $6.02 per gallon already instead of the $4.04 it is today.  So, there is some disconnect in the price per barrel equivalence to the price at the pump.  Clearly, there is not a direct corollary.  While it likely does have some impact, I suspect there are a number of other things at work that drive the price at the pump. So, one may want to question if the conventional headline as shown at the beginning of this section is true?

What else could be driving up gas prices in California?

One other interesting segment of the Lockyer report is the change in 2004 from MTBE to ethanol.  For many who don’t know, and for those that do not remember, MTBE was the additive to California gasoline to reduce pollution as demanded by the environmental movement.  In 1990, with a large amount of money, and huge political activism, environmentalists lobbied the U.S. to amend the Clean Air Act requiring 2% oxygenating additives (typically MTBE) to lower pollution.  The cost of refining gas for use in California went up and so did the taxes on gas to help pay for the increased bureaucracy required to monitor compliance.

Now like most things driven by ideology, a number of years later the same environmental factions now came forward to demand the removal of MTBE from our CA gas as it was polluting the environment (it had been found in high concentrations in the water table of Lake Tahoe and in the water table).  So once again Californians had to foot an increase in the cost of gas as a result of this change and an increase in the cost of the additive (ethanol) as well as an increase in the bureaucracy to manage compliance—oh and let’s not forget increase in fees and taxes. So far I have yet to see an acceptance of responsibility for the initial inclusion of MTBE in the first place, no offer to pay for the removal, and no apology for the mistake from those that promoted the MTBE solution in the first place! (If you would like to read an interesting article on this read MTBE: A PRECAUTIONARY TALE by Thomas O. McGarity, June, 2004 in the Harvard Environmental Law Review)

On a side note, you will also be hearing how the profits made in California by the evil oil companies surpass the national average!  Well the percentage is actually less but the price per gallon is a lot more, so of course the total dollars will be higher.  Further, the costs of operating a business in California are intrinsically higher due to higher labor, infrastructure, legal, regulatory and insurance costs.  When you look at all the costs, what is surprising is that overall California gasoline retailers, distributors and refiners have fought to lower their costs significantly over 27% since 2004.  Not the work of evil geniuses!

The Law of Supply and Demand

Recently, some news outlets are questioning why since the general demand for gas and oil in the U.S. is down significantly and we have had a surplus in supply; prices are still rising—not falling as predicted by the law of supply and demand.  Welcome to the One World Economy.  There are those in the progressive movement, evidently our President included, that have long desired the U.S. to become a member of the One World vision—a One World Economy.  For the past 20 years, much of Europe has been experimenting with this grand vision of utopian fairness.  Looking at the status of Europe today, particularly Greece, France, Italy, and Spain one would really want to ask how this is working out for the citizens of those countries!

The problem with the One World Economy is now supply and demand for our U.S. refined products, regardless of their in-ground point of origin, is based on demand anywhere in the world.  One can take a narrow view and determine that oil refined in the U.S. should stay in the U.S. but economically that doesn’t work because when “evil” oil companies ship this product to other markets, that will pay a higher price, it is actually a good thing for the economy because the U.S. adds revenue to its export sales, reducing the amount of money we need to print to pay for our international purchasing deficit.  We must remember that the U.S. is a net importer of products; therefore more of our dollars flow out of the U.S. than we get back in sales of our goods and services outside of the country.

As an example, suppose you live in a house with your wife and one child.  Your mortgage is $1,000 per month, your other expenses are $1,000 per month, you and your wife both work and you both get paid $1,500 per month.  You are selling your services in excess of what you are spending and each month you gain real asset value of $1,000 each month.  Let’s assume one of you loses your job.  Now, each month you are buying $500.00 more in goods and services than you are taking in.  All things being equal you can do this for twice the amount of time of when you were both working. When you get to the point that you have spent all the money you accumulated (saved), you look in your checkbook and see you still have checks.  So you keep writing them.  It won’t be long before someone comes and knocks on your door.  We have for the last fifty years been ignoring this very  problem of just writing checks because they were in the book and now have a $12 trillion accumulated trade deficit and have over $16 trillion in currency in circulation.  Not only is this a big problem for our general economy, it is a big problem when it comes to commodities that have real tangible value like gasoline and oil.

Since we eliminated the international gold standard in 1972, countries whose economy is based on net exports of predominantly tangible goods and services (like manufacturing and raw materials production) have currencies, like China’s Yuan, that are based on increasingly real tangible values.  The U.S. economy, being a net importer, with little manufacturing and raw production, has an economy whose currency is more and more based on intangible, perceived value like debt against real estate or financial securities.  While the U.S. dollar is still the benchmark currency, perception of many in the world is changing.  Oil is perhaps now the single most valued commodity—not in price per se but in need.  Its price, like gold before it, is set by world demand. There are those who argue that “petrol dollars” should become the new world benchmark.  In other words it would be the new gold standard.  The day that the dollar is replaced, the U.S. currency will simply get crushed! If you think gas is expensive now…

So companies selling products today have an interesting problem when it comes to U.S. customers.  They can take their production and sell it to us and get paid in a currency that has a total amount of money in circulation of $16 trillion dollars with arguably a real tangible value of only $5 to $6 trillion. Remember they will be selling this valuable commodity to a country that each year is buying much more than it is selling so the tangible value of the assets backing its dollar are continuing to slide down or, they can sell them to China whose currency is now internationally recognized, is relatively stable, and is backed by a constantly increasing national asset base due to huge net exports and low manufacturing costs.  Barring a simply patriotic reason, most will sell to the increasing asset value country.

Drill Baby Drill

We can increase domestic production, we can drill more, and we will find that we will reduce local prices somewhat.  While the President says, that drilling will not solve the problem, he is not telling the whole truth.  We can’t mildly increase our production; if we do then he is correct.  We have to significantly increase production to have the effect we seek. The break-point for lowing domestic costs is when we get enough production to reduce the dependency on foreign oil to such a level that the vagaries of their price gaming become meaningless.  There are enough oil reserves in the U.S., with existing technologies to get to it, to replace most, if not all, reliance on foreign sources.  What is necessary to get there, is time and the will of the people.  Unfortunately, we are coming to the point when we simply must face the reality that while protection of the environment is a noble goal it cannot be the only, or preeminent, factor in all our decisions on the energy issue.

Finding alternative sources for energy is definitely a necessary step and is a proper goal.  But, the solutions found in the alternate sources, can neither cost more than the available domestic oil, gas and coal sources, nor can they require us to collect taxes from some, or all, to subsidize the price to pay for us to use it.  Following the subsidized route as we are increasingly doing in this and other industries, is the height of lunacy.  The money we need can no longer come out of thin air as it has for the past forty years.  Taking money from ‘us’ to pay for purchases by ‘us’ from ‘us’ is not only a zero sum game, it is simply increasing our costs as a nation and making us further uncompetitive with other nations who in turn are happy to produce the goods that we can actually afford to buy.  In the end, we will at the same point we are right now with gas and oil today.  We can produce it, but we just can’t afford to buy it.  So then we have to sell it to countries that can afford it like China.

Do you think we will ever learn?

Are the poor lazy, or are the lazy poor?

Aside

First correct the semantics then argue the points!

It seems that I am hearing the invective phrase, that so-and-so republican really said in his speech that, “the poor are lazy”. This phrase is often attributed to a democrat or liberal leaning media person or pundit.

Forgetting the political nature of this statement in the first place, and trying not to take a side in the partisan argument, my issue falls in the fact that the statement itself is carefully crafted to be inaccurately damning a class. The reference is that someone, or some group, who doesn’t like or care for the poor really believes that that if you are poor then you must be lazy. But, if you read the original statements, and not the convenient sound bite, what they are saying is, “if you are lazy, then you likely will be poor.” The former statement damns a class, the latter damns a behavior.

Words matter and when one reads the interpretation of another’s words it is a good idea to actually read the original statement and remember that in politics, each of the replies, regardless of party, has been manipulated, crafted and tested to provide a vilification effect on the opposing interest, regardless of the original intent or context.

Words and their order in a phrase can alter meaning. These slight placement differences are never accidental. We are in an age where most of politics is now based on some form of fraud. And it is we who now suffer its effects.  In the world or profligate soundbites we know longer think–just emote– and the effect on us and our society is building to a catastrophic conclusion.

If we are to combat this soundbite, words as weapons, mentality we must first and always correct the semantic error and then argue the real point. In this case, we need to make sure the point is not the the poor are lazy but that if you are lazy you will likely be poor.  Then, one can argue the real point and not get bound up by false emotional relativism.

Perhaps we should go back to thinking!

Fair Shot, Fair Share, Fair Play: Is life really fair?

To sleep: perchance to dream: ay, there's the rub: For in that sleep of death what dreams may come...

(Readers Note, this is not a short discussion!)

So who ever said life should be fair?  It seems of late (this campaign season) that all I am hearing everywhere is about fairness.  Somewhere, somehow, I must have missed some proclamation.  There must have been some fundamental shift of the polls, or a radical discovery somewhere deep in the cosmos, because I have been operating for all of my life under the safe and secure knowledge that life was not fair—never was!

In my youth, when academics governed my acquisition of knowledge and much of my existence, before life stepped in and modified the theory with practical experience, I studied, chemistry, biology, physics, and other natural sciences. In all my studies in the natural sciences ,I have seen nothing anywhere that tells me life is fair.  Nowhere have I seen any natural system that is predicated on fairness.  I also had an interest in philosophy and religion, and took some classes in these subjects and in my life have read much more in these areas. With the exception of only rare occasions, and those typically only in discussion of the pursuit of an ideal, no religion seems to espouse the theory of the innate fairness of the universe nor in us a people. So I am perplexed how this “Fairness” thing has now become a reality without me hearing about it.

What does it mean to be fair?

fair 1 (fâr)

adj. fair·er, fair·est

  1. Of pleasing appearance, especially because of a pure or fresh quality; comely.
    1. Light in color, especially blond: fair hair.
    2. Of light complexion: fair skin.
  2. Free of clouds or storms; clear and sunny: fair skies.
  3. Free of blemishes or stains; clean and pure: one’s fair name.
  4. Promising; likely: We’re in a fair way to succeed.
    1. Having or exhibiting a disposition that is free of favoritism or bias; impartial: a fair mediator.
    2. Just to all parties; equitable: a compromise that is fair to both factions.
  5. Being in accordance with relative merit or significance: She wanted to receive her fair share of the proceeds.
  6. Consistent with rules, logic, or ethics: a fair tactic.
  7. Moderately good; acceptable or satisfactory: gave only a fair performance of the play; in fair health.
  8. Superficially true or appealing; specious: Don’t trust his fair promises.
  9. Lawful to hunt or attack: fair game.
  10. Archaic Free of all obstacles.

adv.

  1. In a proper or legal manner: playing fair.
  2. Directly; straight: a blow caught fair in the stomach.

tr.v. faired, fair·ing, fairs

To join (pieces) so as to be smooth, even, or regular: faired the aircraft’s wing into the fuselage.

Archaic:

  1. A beautiful or beloved woman. (Old English fæger “morally pure, unblemished” – late 12c.)

Like most abstract concepts, even the definition of fairness depends on your point of view and the subject matter. The thefreedictionary.com definition at the left shows that fair has many meanings in many contexts.  It also shows that the original form of the word specifically related only to a beautiful or beloved woman.  Like the word cute, which originally meant bow-legged, our concept of fair has changed much over time. So if we can’t count on the definition, what is fairness?

What is it?

So, what is fairness anyway and why all of the sudden do we expect it? Why do we think we have a right to it? Why, given thousands of years of history to the contrary, do we think we can get it even if we wanted it in the first place? And, do we really want fairness for all or do we just want fairness for ourselves? Is fairness a real thing or just some perception, some passing fancy on which we are now pinning our hopes of ending our own struggles for survival? If fairness is really a perception, is it not then that life is innately unfair?

Why do we think  fairness is real?

To me, the idea of fairness as an attainable concept seems to be something that comes in the night to people that move from struggling for their day to day existence, to some level of affluence.  Those who believe in fairness seem to arrive at this belief either from their success or their failure to succeed.  Lest you think I am being duplicitous, let me explain further.

Some of those that arrive at the concept of fairness due to their success, seem to me to be those who have achieved some level of affluence in excess of what they expected they were due; based largely on the effort they put in to achieve their success.  In other words, they now have some level of personal guilt over what they now have.  Some, instead of embarking on a direct philanthropic effort to help others, decide that the method of their success was not fair and now want to change something to make it such for everyone.  But those changes actually make it unfair for others who are doing the same thing to be successful and remove their opportunity to achieve parity, replacing it with granted (not achieved parity)

Others arrive at the concept of fairness based on their failure to achieve and compete in some way.  In an effort to justify the failure of achievement, they seek analysis as to the outside circumstances that caused the fault.  In any analysis like this they will find casuations outside their control.  In no way am I trying to say that these causes are not real.  They very well may be real and have had a real effect. The end point, whether the cause is real or imagined, is the same. Convinced that it is simply a matter of abject fairness, people seek some form of redress in order to gain a different outcome. Regardless, the end is the same. An inherently arbitrary equalization system results.

The politics of calculation?

I have heard a number of times, likely based more on anecdotal evidence, that the country is divided 50/50.  Perhaps it is true the 50% of us would respond that we believe life should be expected to be fair and the other 50% would respond, it is not fair and we should not expect it to be so.  Politically this would appear a non sequitur.  Why then has history shown that the political promise of fairness is so successful?  Because, like most things political, when you look beneath the surface, the obvious, you will find the intrinsic value to the politician on selling the promise of fairness and equality.

Of the 50% that say they believe in life’s innate fairness, it is much more likely that regardless of what is said in the polls, only about 20% believe fervently that life can be fair and the remaining 30% say it because they think that such a concept will lead them to additional attainment. This 30% neither truly believe life is fair nor do they really want fairness.  What they want is to get part of that the others, who have been lucky enough, worked hard enough, or were unscrupulous enough to get more than they have.  Whether they earned them, or not, is not part of the equation.  The basic nature of this thought is based on the fact that life is not fair, they got more because it was not fair and only with some intervention that arbitrarily shifts the unfairness in my direction will I get the appearance of it being fair.  And it is the appearance, not real fairness that is the politician’s key.

Political fairness, historically, has not equaled equality.

Life is never fair, and perhaps it is a good thing for most of us that it is not.
-Oscar Wilde

Most of the great philosophers debated the issue of fairness, and likewise debated the issues of equality.  Up until more recently the two issues were not intertwined.  For instance, Solon, was an Athenian statesman, lawmaker, and poet from 638 BC – 558 BC. Justice, for Solon, was not an arithmetical equality: giving equal shares to all alike irrespective of merit, which represents the democratic concept of distributive justice, but it was equity or fairness based on difference: giving shares proportionate to the merit of those who receive them. The same ideas of political order, leadership, and justice can be found in Plato’s dialogues.

For Plato, like Solon, the starting point for the inquiry about the best political order was the fact of social diversity and conflicting interests, which involve the danger of civil strife. The political community consisted of different parts or social classes, such as the noble, the rich, and the poor, each representing different values, interests, and claims to rule.

In Plato’s great work, Republic, he describes four virtues that are the characteristics of a good political society: justice, wisdom, moderation, and courage. Plato described justice as the equity or fairness that grants each social group its due and ensures that each “does one’s own work.”

Wikipedia cites Fairness and Justice are often confused.

According to most contemporary theories of justice, justice is overwhelmingly important: John Rawls claims that “Justice is the first virtue of social institutions, as truth is of systems of thought.” Justice can be thought of as distinct from and more fundamental than benevolence, charity, mercy, generosity or compassion. Justice has traditionally been associated with concepts of fate, reincarnation or Divine Providence, i.e. with a life in accordance with the cosmic plan. The association of justice with fairness has thus been historically and culturally rare and is perhaps chiefly a modern innovation [in western societies].

Studies at UCLA in 2008 have indicated that reactions to fairness are “wired” into the brain and that, “Fairness is activating the same part of the brain that responds to food in rats… This is consistent with the notion that being treated fairly satisfies a basic need”. Research conducted in 2003 at Emory University, Georgia, USA, involving Capuchin Monkeys demonstrated that other cooperative animals also possess such a sense and that “inequity aversion may not be uniquely human” indicating that ideas of fairness and justice may be instinctual in nature.

So why drive to get what we know is naturally unobtainable?

For many, the base concept of fairness is a diversion, a mere bauble, a trinket to dangle in the eyes of those that want it to be true, and something that can even be sold to those that don’t. It’s a dream for sale!

Assume for a minute the country really is one-half believers in innate fairness and the other half cynics.  From a political perspective, the hopeful believe in the dream and will buy it at almost any cost with their votes.  The cynics don’t believe it but, some of the cynics recognize that the dream provides a sociologically and politically correct way to justify getting more from someone else. The concept of fairness fosters the action of redistribution or reallocation because those that believe life should be fair will support the program of accommodation.Some Cynics correctly calculate that they will receive a gain. What they have been unable to attain by a survival of the fittest process, they can now get through the believers voluntary capitulation to a government imposed re-equalization fueled by their guilt.  This proceed adds relative value or assets to what the Cynics naturally received through competing in the “unfair” manner.  The process is now innately and hypocritically even more unfair because these Cynics are receiving “fairness” based on an unfairness to others resulting from a concept they do not believe in the first place.

This is now so ingrained in our political mind that right or wrong,  fairness has now become the watchword and income redistribution the measure!

But is life really fair?

Bill Gates said: “Life is not fair; get used to it.”

This is an interesting question, and perhaps it is the most important one to answer before we embark on yet another generation of programs geared to seeking government equalization for perceived unfairness.  One thing we need to consider is that much of our history and knowledge rules against the concept that life is, or could be, fair.

Theory of Evolution sides against life as fair!

Since the theory of evolution (according to the extreme right-wing conservatives) is a liberal theory, you would think that it might provide some basis for the concept that life is fair.  Darwin’s theory, even the modern modified form of it, is predicated on the main concept of survival of the fittest.  Those that do not survive, fail to reproduce as much as others more capable and therefore over time the advantageous characteristics of the fittest survive, and the disadvantageous characteristics of the rest of the species die out.  Clearly this is not a very fair system to those that don’t make it to the next evolutionary step now is it?

Creation Theory sides against life as fair!

So if evolutionary theory is a bastion tenant of the left, let us look at the extreme left-wing view of what is a bastion tenant of conservatives—Creationism.  Once again, this theory also does not support the concept of life as fair. Let us just look at one point of many.  As God dropped the innocent Adam and Eve into the Garden of Eden, he set up one thing that they could not do.  They could not eat the apple.  Now is that fair?  Eve didn’t think so!  The non-biblical theory of creation is rife with the inherent conflicts and accomplishments that brought man forward from historic to modern times.  It was man’s ambition, effort, and conquests that defines his steps to modernity.  No where in this theory is the concept of fairness used to illustrate mankind’s gains. In fact in many of the illustrations it was mans innate unfairness that gave one group an advantage over the other.

Big Bang theory sides against life as fair!

OK lets look to pure science. According to the Big Bang Theory, the universe began, perhaps after a great cyclic gravitational contraction, with a large explosion.  Everything that existed prior to the explosion was destroyed and released anew as pure energy.  As the universe cooled all the various forms of matter formed according to what we know of the laws of physics, and the chaos of the explosion became replaced with some relative and random order. So according to this theory you have a massive destruction of something that gradually re-consolidates into something else.  Clearly, this was not very fair for that which got destroyed now was it?

I guess it could be called the ultimate in income redistribution!

No government process yields fairness

The United States, by all external accounts, has one of the fairest judicial processes in the world.  Hundreds of thousands of pages of rules and laws have been written and established with fair justice as the principal goal.  Yet, look at the O.J. Simpson trial, or more recently, the Casey Anthony Trial.  Ask most Americans if the outcome was fair and they will tell you that both of them got away with murder.  Clearly, our own experience shows us that life is not fair and no government can provide fairness.

In an odd way, the system itself recognizes life is not, nor ever will be, fair.  Our form of justice is not as much about fairness as it is equalization of injustices, both perceived and real, by the transfer of some value or asset from the defendant to the plaintiff.  Even things that are clearly recognized as accidental, now include compensation for the victim as part of the “fairness” concept of justice.  In the early 1800s through the mid-1900s, liability for damage due to death from addictive patent medicines rested in the hands of the person who purchased it and chose to take it.  If you used a piece of equipment in the 1840s or 1850s and you lost a finger—well, its a shame you lost the finger, stuff happens you know!

Today, for some, by no means all, such events become a life changing payday.  Our concept of fairness has evolved much over the last century or so.

Point of View

Fairness is clearly just a point of view. The concept means different things to different people, at different times, and in different circumstances.

Aurthur Brook, the president of the American Enterprise Institute,  defines fairness this way:

We are not a perfect opportunity society in the United States. But if we want to approach that ideal, we must define fairness as meritocracy, embrace a system that rewards merit, and work tirelessly for true equal opportunity. The system that makes this possible, of course, is free enterprise. When I work harder or longer hours in the free-enterprise system, I am generally paid more than if I work less in the same job. Investments in my education translate into market rewards. Clever ideas usually garner more rewards than bad ones, as judged not by a politburo, but by citizens in the marketplace.

Others define fairness on some system of compensation for perceived, or real, inequality.  But in such calculations, one persons fairness is another person’s unfairness.

While the goal of Affirmative Action is to offer incentives, subsidies, and other compensating systems to change the future results in favor of those who were viewed to have been historically treated unfairly, what is fair for the recipient is now unfair for some, if not many, of those who now do not get the benefit.  If such systems are compensation for past unfairness, at what point does the balancing cross over to real unfairness in the other direction?  What system is in place to measure and determine the point for the balancing re-equalization to stop?  Initially, such systems may appear fair but they are not universally fair.

Look to the movie “Unforgiven” when Hackman’s character says in his dying breath, “I’m building a house. I don’t deserve it.” and Clint’s character says, “Deserves got nothing to do with it.”

Universal fairness, in the end, is the concept that belies the concept of fairness in the first place.  What may seem fair for one set of people and one circumstance is seldom fair for others, or perhaps for all.  For the sake of argument, let us assume that Theory of Evolution is correct and the continued survival of a species is based on its continuing evolution through the mechanism of survival of the fittest.  If this is true, then our modern healthcare system—that is solving for all the inter-species competition and environmental damage that normally would be spelling death knells for individuals, or seriously impacting their ability to reproduce—is prohibiting this survival of the fittest process from taking place. Therefore, it might be argued, modern healthcare is not innately fair for the species as a whole.  It can also be argued that keeping people alive to an older and older age where their productivity for the benefit of the species becomes much less than what they consume is also innately unfair.  Yet, none of us as humans make this argument, or myriad others that could be made, because we believe we are a special species on this planet that feel and care for others of our own kind.  Now, we also even significantly express care about the other species as well, sometimes to our own fiscal detriment.  Is this well founded enlightenment or is it simply a long term strategy of our own species’ self destruction?

Fair Use, Fair Trade, Fair Employment, Fair Market Value, all use different fundamental concepts or measure of fairness. Often, in the end, fairness adds up to being the political concept of equal treatment for some based on the justifiable unequal treatment of others.

Conclusion

While I am going to be using the President in the following example, I see the same thing from the candidates on the other side of the aisle. Please do not draw the conclusion that I am only finding fault with President Obama. I n fact, I find fault with them all on this point!

For this election, President Obama is now decided to use the main theme (sound byte, talking point, mantra – you pick it) of Fair Shot, Fair Share, Fair Play.  In these moments he contra-poses the hope of fair with the negative of things like the mortgage foreclosure crisis or the stock market collapse, or the “greed” of wall street and the rich corporations.  Without stating it directly, first he imparts the message that we should expect fairness and it can, in fact, be attained.  Secondly, he is building the image that only he is fair and anything else is not fair.  He makes the statement that everyone should be able to buy a home but does not discuss whether or not they should have the requirement to afford the home in the first place.  If they can’t get the loan, for whatever reason then the lender is not fair.  If they buy the home and now the lender wants to collect or repossess the home than the lender is not fair. He uses terms like unscrupulous in these cases to paint a broad picture.

Clearly, some lenders are unscrupulous, just as some people seeking loans are also unscrupulous.  But being a lender does not directly equate to being unscrupulous any more than being a borrower automatically equates to deadbeat.  While one side can quote statistics to show how all the lenders did such-and-so to be unfair to home buyers, conversely the national statistics on upside mortgages and home mortgage defaults leads one to draw the conclusion that a large part of borrowers are deadbeats.  Neither of those assumptions are of course true.

Framing the argument for his re-election in such a lopsided way is indirectly and in some cases directly, instilling in the public that they have a right to own a home regardless.  If they, you know those unscrupulous people, don’t loan you the money or you can’t pay it back it is they, the unscrupulous, that are unfair…

The President in a recent video discussing fairness said, “Congress cannot end the year taking money out of the pockets of working Americans.”  But, in the end, that is what all government fairness programs really do.  They do not provide fairness, they provide unequal treatment for some to provide equal treatment for others, usually based on a specious and arbitrary determination.  When it is the result of a political issue then it is simply unequal treatment for the group that is the numerically the smaller group of voters for the benefit of the larger voting block. This is why our founding fathers were so adamant that we became a republic, not a democracy!

In the President’s case, perhaps it is that he simply believes his system is fair because the Working Americans he favors deserve more fairness that all the rest of us.

As Hamlet said, “…Therein lies the rub: for in that sleep of death we know not what dreams may come…”

But then again, maybe we do!

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$25 billion in foreclosure relief: Will Americans really benefit?

(this article originally  ran in California Political Review it is re-posted here with permission.)

Median Housing Price compared to CinC 1960 to 2009

While the news today is full of various articles touting the $25 billion government settlement between the nation’s biggest banks and homeowners there is one big question for the nation’s citizens, and in my local case Californians—will this really be a benefit? While I am looking at this from a California perspective, this really is the same for the country as a whole.

In examining this question, there are at least three things to consider:

  1. Will the initial settlement amount become a meaningful amount for homeowners and truly affect their current financial situation?
  2. What are the long term implications of this settlement for mortgage holders?
  3. Will this settlement resolve the underlying problem in housing prices and declining values?

Before I get into this topic, first let us commend California’s Attorney General, Camilla Harris, for her efforts at getting a better deal for Californians.

Meaningful Amount

Question number 1 is perhaps the most current.  Clearly, this is the question on anyone’s mind who owns a home in California.  Will the $25 billion really have a material effect on my mortgage problems?  California has the most homes underwater of any state, according to Santa Ana-based data firm CoreLogic.  There were as of September 2011, more than two-million homeowners that owe more on their homes than they are worth.  By percentage, California ranks fifth with 30.2% of all homes upside down in value.  Compare this with the national average of 22.5% and you will see there is a big problem here.

If you take the national total of 10.9 million home owners spread across the $25 billion, and you apply a “historical fairness” standard where everyone gets treated equally, you get an average payment to each homeowner of $2,293.58—not very meaningful is it? Now, some believe that the “rich” do not need, or deserve, the extra money, so using a “revised fairness” standard, and the fact that some significant number of people will not apply for the funds, the settlement group estimates that the average amount granted to those participating will be more like $20,000.00.  This number sounds better but, there is a big but attached. The combined negative equity of all US homes is over $700 billion meaning that the average homeowner is underwater by at least $50,000.00.  And higher priced homes, like those owned by the rich, often are underwater by a significantly higher percentage.  Adding in the fees and other charges that will get levied by the banks for the processing of these claims and the effective gain drops even more.  So on a national basis, some could take the cynical view that this is not a meaningful amount—but, what about for Californians?

California, by the CoreLogic study has about 2.06 million homes underwater.  The state is targeted to get about $430 million. Using the same comparison above, the “historical fairness” allocation would be $208.74 cents per homeowner and the “revised fairness,” amount, where the rich don’t get any help, will equate to about $3,779.82.  Since California’s market has been hit harder than many other states and its average home price is much higher, the proportional amount negative equity is also likely higher.  So, one could argue that Californians may not only feel the amount is meaningless, they may also feel it is not fair overall!

Long Term Implications

Like most things revolving around government driven programs and settlements, we need to think about the long term consequences.  Where does the money come from that makes up the settlement?  Well it comes from the banks—right?  As the last stop before it gets paid into the settlement that is correct.  But, while this may be the end of the story, as usual, it is not the whole story.  The money comes from us via two primary routes; one visible and understandable and the other confusing and relatively insidious.  First, it comes from the bank’s profits, if any.  And of course their profits, if they have them, come from the fees they charge us, and if the bank’s costs go up they charge more fees to us and we pay them.  So in this route the money comes from us.  The second main route, the more insidious one, is from loans made to the bank by the Federal Reserve to help the banks maintain liquidity or inject more cash into circulation, sometimes called “quantitative easing.” In this case, the money is created out of thin air by the Federal Reserve increasing the total amount of money in circulation—with no increase in value of the underlying assets—passed down to the banks to pay out to us to reset our loans and it reduces the real value of our money.  The result is; goods increase in price, the money we earn goes less far, and we in effect are even poorer.

The cynics among us, who have concluded long ago that there is no free lunch, realize that no matter what the money we get is really coming from us. They may argue that the long term implications from this program are not very good.  The reality is, there really is no free lunch and we can expect that this particular settlement will not work out well for any of us in the long run.  Since many of the people who have the worst upside down mortgages would appear to many other to have been rich, it is not clear that this program would even be a model for the execution of “income redistribution” that some proffer as a solution to all of our ills.

The Underlying Problem

If you look at the graph at the top of this article you will see that the route of our underlying problem goes much deeper than it first appears.  While some argue the cause is the profiteering of the rich and corporations, and others charge it is the irresponsibility of people borrowing to buy houses they could not afford, the real root of the issue is the underlying basis of our economy.  Prior to 1972, the total amount of currency in circulation, referred to as the CinC, was about $500 billion dollars.  The amount of actual currency was restricted by a mandate that each dollar had to be backed up by a set amount of gold.  By 1972, this had become a huge problem as we could not increase the amount of currency and the government, therefore we,  did not have enough cash to pay for all the expenses the country was racking up like War, Social Security, Medicare, Medicaid and myriad other subsidy programs.  Also we were accumulating an increasingly large trade deficit.

But in 1972, then President Nixon, removed the country from this check and balance. By today we have increased the amount of money in circulation to about $16 trillion.  This is a thirty-five times increase in the total amount of the money supply.  No one will argue that the total value of the US assets has also increased thirty-five times—hence the problem.  If you look at the chart, you will see that the median home price in 1972 was about $24,224.  At the peak of the housing bubble in 2005-2006 the median price had risen almost point for point with the increase in the money supply to $298,500.  If you now look at what the median home price would have been if we had not done this, the median price projects to be more like $115,734. The point is that if it is true that the amount of money in circulation is not representative of the real value of American assets, then our total economy, is overvalued.  Even with the tech gains from our NASA investment in the 1960’s and 1970s, the economy would project to be about a $5 to 6 trillion economy not $16 trillion.  Housing, under this calculation, would have to decline another 46% in order for all to match up.

Even if these calculations are off and the relative value of our assets has increased at a rate higher than the pre 1972 rate, there is likely still a large correction coming to our economy in general and housing in particular.  California will be the eye of this perfect storm.  I submit that this mortgage fix neither addresses the underlying problem nor ameliorates Californian’s personal and current dilemmas.  I think it may really do the exact opposite and compound our problems with false hopes, false senses of security and increasing debt based on inflated values that are doomed to correct.

Regardless, this is an unbalanced fix in that it is trying to fix the debt side for a few and ignoring the unbalanced asset value side for everyone else.  Even if pumping more arbitrarily printed money into the economy buoys the market in the short term, the continued unrealistically inflated values will again decline and once again we will be faced with the same problem. This will promulgate more borrowing against what likely will continue to be declining values in an overvalued economy—potentially spelling disaster. The only fix that will work is to address both sides of the problem across the board resetting both the Debt and Equity Value side at the same time.  Perhaps it is time for either the Federal Government, or California, to consider a “Land Bank” system of mortgage financing.  We need to address the balance sheet of the bank and homeowners at the same time we address the asset value side of the equation. Only then can we truly, fairly, and equitably address the fundamental problem.

So in the end is this deal a good deal for Americans?  For Californians? And the more important question we all need to start asking is this!

Regardless of the impact to me personally, is this the right thing for America?

I keep wondering why this is so hard!