Unrealistic Expectations

The inauguration of America’s first African-American President will soon be upon us. No one can argue that this is a historic event in our country’s history. Who knows? Some day we may even elect a woman as President.

I’m not here to talk about gender or race though. What I do want to discuss is the unbelievably vast amount of things that many people are expecting President-Elect Obama to be able to accomplish when he gets in to office. I fear that there are going to be a great many disappointed people when they discover that our new President will not be able to wave a magic wand and make everything that they want instantly appear.

Our country is in the midst of an economic and social crisis. The official types have finally admitted that we’ve been in a recession for almost a year. Will we continue to fall and wind up in a depression? The rate of job losses and home foreclosures shows no sign of slowing. At this rate we stand a good chance of falling into a depression.

With a massive national dept, several wars, job losses, and all the other problems facing us our soon to be inaugurated President is going to have his hands full.

History is an excellent teacher. Let’s take a look back to see what happened to other President’s faced with national crises during office:

• Franklin D. Roosevelt took office during the Great Depression when unemployment stood around 25%. I find it interesting that he blamed the depression on bankers and financiers, the quest for profit, and the self-interest basis of capitalism, a situation very similar to the one we are in now. While he was able to pass much legislation during his first 100 days in office, there were many who opposed him. This opposition followed him into his second term where he was unable to pass much legislation through Congress. Roosevelt was elected to a historic 4 terms in office, but what really brought this country back to its feet was World War II. Personally, I don’t think we need any more wars.
• Jimmy Carter had his share of economic problems while he served in office. When he took office in 1977 America was suffering rising economic inflation and an energy crisis. He accomplished a great deal of good while he was in office: creation of the Departments of Energy and Education, establishment of a national energy policy, the famous Camp David accord, and the establishment of the Arctic National Wildlife Refuge. However, he had many problems with Congress and was unable to get much of the legislation that he wanted passed by Congress. Very few people think of him as a good president.

So, what does this say for our next President? We need to be realistic about what he will be able to accomplish. Cities, counties, states, and even the Federal Government are getting fewer tax revenues to use to pay for all the services and support that the people need. With little funds to draw upon, there is only so much that anyone can do. We’re in a big mess. We did not get here overnight. We will not get out of this mess overnight either.

I’m not the only one thinking this way either. Check out this political cartoon by Chris Jurek. It was selected as one of the top 10 political cartoons by Time magazine.

Average American Bailout

Are you an average American like me? Then you too can all forget about getting anything from the bailouts that our elected officials are handing out to wealthy business executives.

While the fortunate ones are treating themselves to spa visits and bonus checks (just because they change the name doesn’t change what it is), I’ve been digging down under the cushions in the couch looking for fallen change. The $29.50 that I managed to dig up has to cover all my expenses for a while. Good thing ramen noodles are 10 packages for $1!

No, I’m not trying to sound like “woe is me”, I’m lucky in that I still have my house. There are many, many more people in worse shape than me. I may only be working part-time but I know lots of people who don’t even have a job. I see people standing on street corners who don’t even have a home.

It would be nice if the government would hand out some of those $700 billion dollars to us average Americans. Unfortunately, I don’t think that is going to happen. After all, the only way to get anything is to already have lots of money to begin with. If you can’t “donate” lots of money to a politician you’re not going to get anything from that politician other than a form e-mail/letter that basically says nothing.

The only one who is going to save the average American is the average American. We’ve got to take care of each other because we’re all we’ve got. Looking for an example: check out this story I saw on CNN about a local, retired, businessman who has bought back his old store rather than see his former employees turned out into the street. Because of his actions there are 17 people who get to keep their jobs.

From lots of single snowflakes an avalanche is formed. Even if you can only do a little to help someone (and helping yourself counts too), it is one more snowflake to add to the pile.

Fixing Our Economy - A Few Suggestions

By now I think even the most skeptical and conservative would have to agree that we are in, at the least, a recession here in the U.S. Personally I’m inclined to agree with those that feel this started late last year as that is when my computer consulting business saw the bottom drop out of it.

Because this is an election year there has been much mud and smoke thrown about as both major political parties describe how wonderful their plan is and how bad the other party’s plan would make things. I’m not here to say which side is best, rather I want to point out some [possible] long-term solutions that are not being discussed:

Energy

Currently we import and consume too much oil. Oil is not a sustainable resource and, while we can’t agree on when it will run out, we will eventually run out of it. There are other ways to produce energy. We need to fund, at a national level, research on alternatives. There are a number of, I feel, obvious benefits from this, including:

• We reduce the amount of money flowing from this country and spend it here at home instead.
• Money spent on research should spur an increase in engineering and other related fields. This country desperately needs more high-wage jobs as opposed to our current choices of “paper or plastic?” and “you want fries with that?” opportunities.
• Reduction in air, water, and land pollution.

Check out official energy statistics from the U.S. Government showing how much we import and from which countries.
Read what the Apollo Alliance has to say on clean energy and good jobs.
I have more ideas posted on my alternative forms of energy blog post.

Science

Nations prosper that invest in science and engineering. For many years the U.S. was a leader in new technologies and we prospered because of it. Now, unfortunately, few students are interested in math and science because there are not enough new jobs being created.

I know that a lot of people feel that ‘pure science’ research is just money being thrown away. However, research spurs new ideas and new products. New products lead to new jobs. Have you seen the unemployment numbers lately? This country has been on a net job loss for too long. When people have a job they can spend money on things they need. Spending leads to investment with leads to even more jobs and a way out of this recession.

Check out what the HPC Wire has to say about current science funding.
See a comparison of U.S. to China science funding.

The future of this country

The U.S. is still a superpower, but for how much longer? China is in the process of outpacing us in both scientific funding and space exploration.

So what you say? Why waste money on science and space? Look at some of the spin-off products from our space program are now part of our daily life:

• NASA technology gave us a "cool" laser, which provides thousands of patients with an alternative to heart bypass surgery.
• Hubble Space Telescope technology has made it possible to do certain breast biopsies with a needle instead of a scalpel.
• The foam insulation that covers the shuttle's external tank, developed by NASA's Marshall Space Flight Center and Lockheed-Martin, is used to make molds for fitting artificial limbs.
• Medical personnel can monitor fetal activity inside the womb using a small pill-shaped transmitter developed at NASA's Ames Research Center.
• The same material used for lightweight, durable spacesuits is used as permanent covering for shopping centers and sports stadiums. NASA technology also is used to pad football helmets and baseball and soccer chest protectors and shin guards.
• NASA-driven technology also makes possible satellite TV transmission and telephone signals that are beamed around the world.
• It has led to microcapsules that help clean up oil spills and to satellite remote sensing technology that locates and maps forest fires.

There's a lot more. Read the full list at the NASA Solutions site.
Read about recent developments in China’s space program.
Take a look at China’s overall space program and plans.
Read about some of the medical benefits that have come from space exploration.
Space exploration is important, read more here.
Mining resources from space, read more here.
Take a look at planet Earth as seen from space.

After World War II this country invested in both science and space. Our economy boomed. People from all over the world flocked to this nation because of the availability of high-paying jobs and the many opportunities for all to prosper. If we are going to get out of our current mess we need to look at what worked for us before. We can’t afford to wait.

Taking care of ourselves

I don’t have to tell you that the news has not been particularly good lately. The bad times are going global, and about the only good news is that the price of gas is going down.

Are we headed for another Great Depression? I hope not. However, do you know how the last one started? Here is an excerpt from a commentary posted at CNN:
“The Great Depression resulted from a series of economic and financial shocks -- the end of a housing bubble in 1926 and the end of a high-tech bubble in 1929 -- but also from truly breathtaking neglect and incompetence on the part of policymakers.”
Sound familiar?

So while governments and the World Bank rush to bail out the big guys what happens to the rest of us? For me, the only thing that comes to mind is a line from an old Beatles song: “I get by with a little help from my friends.”

Family, friends, neighbors. We’re going to have to pull together to get through this. I’ve been using the barter system for some of my medical care, I’m hoping to use it now to trade for other essentials. Here’s a few other suggestions:

• Carpool with neighbors when going to the store to save gas.
• If you don’t have to go very far, consider walking or riding a bike.
• Check out the public transportation available where you live.
• Save money on food by cooking up a couple of big meals then freeze them in easy to heat portions. It will give you the convenience of take-out at a much lower price.
• Instead of buying books, magazines, or newspapers, visit your local library.
• Team up for savings. I needed to have my roof replaced, but it turned out that two of my neighbors had roofs of the same age as mine. By having all three done at once we were able to get a great deal from the roofer. The roofer saved too by having his team working in the same area.

It’s a tough world out there, but if we just pull together we should be able to get through this.

A Short History Lesson

“Those who do not learn from history are doomed to repeat it.” George Santayana, the Spanish born American Philosopher, Poet and Humanist who made important contributions to aesthetics, speculative philosophy and literary criticism.

History is a subject which does not seem to interest as many people as is should, especially young people. This concerns me because there is a lot that can be learned by looking back at past events and seeing what went right and what went wrong. To me, ignoring history is like ignoring experience. Perhaps you’ve heard the expression “experience is the best teacher.” With all this in mind, I'd like to take a look back in time:

In the 1970’s America was suffering through some tough economic times, jobs were being lost, President Nixon resigned, we had a gas crisis, inflation was rising, and we had the Iran hostage crisis (a short history of the 1970's). President Carter proposed some belt-tightening to America, and his suggestions might have worked. However, his opponent in 1980 was the very charismatic Ronald Reagan. America wanted good news, not bad. We didn’t want to take the hard road, we wanted everything nice and easy. So we elected President Reagan and got trickle-down economics – a great program for the rich, who got richer, but not so good for everyone else, who got poorer.

Here’s a political cartoon about our last four presidents:
So here we are in 2008 and we’ve got tough economic times, jobs are being lost, we've got a gas crisis, and prices for everything are rising. Wonder where that easy road is going to take us now?

Spinning out of control

The Associated Press reported today that the Democratic and Republican candidates spent $94,000,000 dollars in August. That’s $94 MILLION dollars in one month. What did they spend over half of this money on? Advertising. Here’s a quote from that AP report:
“Their campaign finance reports, filed before Saturday's midnight deadline, shows that more than half of their $3-million-a-day spending rate was devoted to advertising that became increasingly negative during the month.”

Once again the American political process devolves to a mud-slinging process. The winner is the one with the best spin and the most convincing lies. I sometimes wonder how the rest of the world views us. I’d wager they are having a good laugh at us.

Considering the shape our economy is in I suppose that I should be glad that there is all this money flowing around. They are keeping advertising agencies, television stations, radio stations, and print media employees from loosing their jobs. They even have their own well-paid staffers. Obama has a monthly payroll of $2.8 million and McCain has a $1.2 million payroll. Glad to know that there are still some people with jobs. Maybe I should have gone to work for one of them.

What really worries me thought is that when it comes time to vote the average American won’t have a clue who they are really voting for. Instead they will vote for the one with the best advertising and the candidate with the best spin doctors that money can buy. This country is facing some very serious and potentially catastrophic problems. We should be asking the candidates hard questions about what they will do to fix these problems. Instead it’s all sound-bytes and spin.

For those who might be curious about the truth and lies in what our candidates are saying I recommend the following sites:

• The Annenberg Political Fact Check, a project of the Annenberg Public Policy Center of the University of Pennsylvania
• National Public Radio, Election 2008
• Center for Responsive Politics, a nonpartisan guide to money’s influence on U.S. elections and public policy
• CNN Political Fact Check, located towards the bottom of the page

Beware though, many sites that profess to provide nothing but the facts are in truth just putting their own spin out on the Internet. Which is, unfortunately, why I am not able to recommend more sites.

Lastly, if you would like to try your own hand – and maybe land a good job with a political candidate – at spin, check out this how-to site at eHow.

Getting by with less

I think we can all agree that it has been a tough year. Incomes are either flat or down while costs of stuff is up. Personally, I don't see things getting any better for quite a while. This is an election year, but the people we elect in November won't be able to begin doing anything until next year. Who knows how much time it will take for what they do to actually take affect. Optimistic is not a term I use to describe myself anymore.

Regardless of what else happenes or may happen, I have learned some valuable lessons this year. Perhaps many other Americans have learned this one as well: how to get by with less. I've had to drastically cut my spending just so I could pay my bills. If it's not an absolute essential, I'm not buying it any more. Sure, there are things I miss, but I've discovered that I can get by without them - that I really didn't need them. This is a lesson we all need to learn: how to separate what we need from what we want.

America has been a society of consumers for a long time. A billboard for one of the local "factory outlet" malls near where I live has the slogan: "Shop till you drop". Advertisers show us all the things we need to look good in, smell good wearing, all the stuff we've 'got to have' so that we'll be enticed to go out and buy it. While the money lasted, it was good. But did we really need all that junk?

Did you know that America is the largest consumer of a majority of the natural resources of this planet while not having the largest population? The American Association for the Advancement of Science has this to say: "For many resources, the United States of America is the world's largest consumer in absolute terms. For a list of 20 major traded commodities, it takes the greatest share of 11 of them: corn, coffee, copper, lead, zinc, tin, aluminum, rubber, oil seeds, oil and natural gas. For many more it is the largest per-capita consumer." When it comes to energy consumption we again are the biggest consumers. And when it comes to oil consumption, no one else is even close.

So it might not be such a bad idea for us all to try and get by with less. Sure, some jobs will go away because of this. However, if we were to start doing/building some of the things that we as a nation really need then new jobs will be created. Some ideas: research and develop alternative forms of energy, rebuild our highway infrastructure (remember that bridge that fell in Minneapolis?), and clean up the environment.

I'll end with a link to a post by Frances Ellen on 6 ways to beat the cost of groceries. She's got some excellent suggestions.

2008 Elections

I came across this while surfing through some of my favorite blogs the other day. It's a new word recommendation for the dictionary:

Elec-tile Dysfunction: The inability to become aroused over any of the choices for President put forth by either of the two political parties in the 2008 election year.

This really resonated with me. Back in January I wrote a blog about the primary elections going on in my state and why I felt disenfranchised by the whole mess. Well, I still don't feel any better about the whole process. Our nation is going through a series of very difficult 'economic corrections' right now and I, like many folks, have little faith in my elected officials being able to do anything constructive about the situation.

The local area of politics, and maybe the state level, is the only place I'm interested in. It is the only place that I feel I have any real control over my future and any real say in the outcome of the election. As for the national election, I'm still trying to decide who my write-in name should be for president.

Signed,
Looking for suggestions

It IS the economy stupid

I came across this political cartoon the other day by Corky Trinidad and it got me to thinking about what this country would be like if all the Iraq war money went to something else.

First, do you know how much money the United States is spending on the war? zFacts has an interesting chart that updates continuously and a few frightening facts. Here is an excerpt from an article at The Coloradoan “The Iraq War is costing more than $400,000 for each troop in the field. We are spending over $240,000 per minute for this war. The war costs each American household $138 per month. By 2017, the United States will have paid $1 trillion in interest on money borrowed to finance the war. This nation deserves better.”

Now, what can you do with $1 trillion dollars? Here are some suggestions from an article in The New York Times :

• Public health: treat every American whose diabetes or heart disease is unmanaged plus a global campaign to immunize millions of children.
• Education: Universal preschool for every three and four year-old child in the U.S.
• Rebuild New Orleans
• Real national security: we could put into place all those recommendations by the 9/11 Commission that haven’t been done

All of this could be done and we’d have some money left over! Or, how about this? Instead of a puny little “economic stimulus” check (my $300 should cover about 3 tanks of gas, if I’m lucky) the government could send every American enough money to REALLY stimulate the economy!

Economics Nobel Prize winner Joseph Stiglitz and Harvard Professor Linda Bilmes have published a book, “The Three Trillion Dollar War.” This book should be must reading for all of us because it details the true costs of the war in Iraq. The war is a legacy that will be with us for several generations as we deal with the debt the nation has incurred and the massive number of wounded veterans that will need continuous medical care.

As a nation we need to wake up and smell the coffee because someone has left the pot on the burner for too long. There is an election coming up in November. Let’s hope we can do some good then.

Avarice and Envy

Watching the current political campaign ads has reminded me of how little things change. The cycle goes like this:

• Current politicians do something bad (lie, steal, cause harm to the citizens or nation, etc.).
• Election year comes around and new candidates run promising to “clean up”, “address wrongs”, “solve problems”, and make other encouraging noises to get elected.
• We elect the ones that promise to “clean house” and give us everything we want.
• The new politicians get into office and do the same things as the last ones.
• Next election time we do it all over again.

Don’t be too depressed by this though, you can go all the way back to the time of the Greeks and Romans and find the same basic pattern. Too bad we seem incapable of learning from the past.

There have been one or two high points in human history. One of those is the 17^th century Dutch Republic. They fought a long war, around 30 years, to free themselves from Spanish rule. They then created a free and open society that became a haven for intellectuals and other refugees. Many scientists, mathematicians, and philosophers came there. Some of the founders of the United States were inspired by these refugees.

In the Amsterdam Town Hall they put many reminders of who they were and what was important to them. One of them stands out to me: it is a relief carving of Justice, holding a golden sword in one hand and scales in the other. Justice stands between Death and Punishment and is stepping on Avarice and Envy, the gods of the merchants. The Dutch put that there because they realized that “the unrestrained pursuit of profit posed a threat to the nation’s soul.”

For many years now our country has been under the impression that what is good for business is good for the country (or at least that is what our elected officials keep telling us). The wealthy businesses owners give money to their chosen candidate and then the successful candidate obediently passes laws in favor of business (which is why wealthy people give money to candidates in the first place: to get what they want). And what benefit does the average citizen see? Here’s a small list:

• Jobs outsourced because labor is cheaper somewhere else
• Benefits cut for most workers
• Top executives “golden parachutes” turning into “platinum parachutes”
• “Made in the USA” replaced by “Made in China”

Wish I had a solution for this mess. Unfortunately all I can do is climb up on my electronic platform here and offer my opinions and hope for the best. Please think about this. I’d love to know what you think.

Oh, one last thing: while working on this post I came across an article entitled "Why Economists Should Not Be Ashamed of Being the Philosophers of Prudence". Interesting reading.