Sunday, July 10, 2016

Look both ways ...

At the border, to the north is wealth, to the south is poverty.  Why?

In the case of Nogales, the difference between the two sides of the border is the governance under which they live. Everything else is pretty much the same, isn't it.  On Mexico's side of the equation, there's a distinct favoritism and an elite structure that limits competition and keeps the common folks from making any particular economic progress.  To the north, entrepreneurship, competition, patent rights, monopoly law, and property rights open the door for many. Minimum wage used to help; now not so much.

Life in Nogales, Mexico, 1999.  Little
has changed since then.
To be sure, there are wealthy people and poor people living on this planet. Some have mansions, others are homeless. Some have caviar for breakfast while others starve. Some avoid paying taxes, others die of curable diseases because they can’t afford medicine.

Agriculture in North Korea is inefficient and
vulnerable.  Half the country's population
 lives in extreme poverty.
North and South Korea are an interesting case.  One of the poorest and one of the wealthiest countries in the world; they come from the same history, geography, ancestry, language, and culture, yet the difference is stunning.  North of the border, famine kills people, and half the population lives in extreme poverty. Again the only difference between the two is governance.

The wealth of an honest man is different than the riches of an oppressor, or a usurper of rights.  Mubarak, for instance; he and his family were worth billions, all extracted from the Egyptian economy before he was driven from office.

We have governments and regulatory agencies that do or don't serve us well.  All of us.

That brings us back to our issue of inequality.  

In the U.S., inequality (the GAP) began accelerating in the 70's, and the wealthy have made extraordinary gains.  Note the household income chart here.  For the bottom economic half, gains are due to more household members in the workforce while wages have been stagnant.  Below the halfway mark, household income hasn't kept up with increases in cost of living.  Particularly, education and healthcare are less accessible.

For too many, there have been difficult choices between children's education, retirement savings, and owning a home.  Typically, households live payday to payday, and the only option for some is living in a high-density, high-turnover neighborhood, not the best place to raise children.

Both education and healthcare costs have been inflated by programmatics rather than by value.  The student loan initiative caused college costs to elevate well ahead of nominal inflation rates.  It was supposed to make it more available but has had a significant detrimental effect opposite to intent.  Health care costs have followed a similar path.

Inequality between countries is a result of governance, internal and international.  

Inequality inside a country is the result of preferential governance.  It's perhaps not intended to be abusive to the lower economic segment, but it's certainly as effective as if designed for that purpose.


A failed minimum wage policy gave us Walmart and an end to many local businesses. Originally intended to protect workers, the minimum wage has lagged behind cost of living increases until today, it is worth 20% less than in the 60's.  Households now can't survive on a minimum wage job, of course. Even two full-time minimum wage jobs don't get a family above the poverty line.  We pay for welfare and assistance programs for the underpaid workers, something their employers should be paying, but they don't.  

The wage policy and regulatory processes weren't intended to do harm, and early on, they helped significantly.  After years of inattention, however, it appears that they've detrimentally reshaped a large portion of our economy and culture.

College costs have increased about 800% since I enrolled at UT fifty years ago.  Household income has increased less than a twentieth of that for all but the wealthiest.  That means that every year, fewer regular folks can send their kids to college.  That didn't just happen, it was the result of governance and regulation.  It served the wealthy quite well, but we've seen an accelerating inequality that affects more and more of our citizens.  It's not an accident, and it's not something chosen by the less fortunate among us.

Poverty isn't something you choose.  It's done to you.  Do the research for yourself.







Today's troublesome issues:
Inequality
Discrimination
Oppression
Access
Education
Healthcare
Employment
Advancement
Fair treatment
Fair wages
Fair representation
Prejudice
Hatred
Injustice
Marginalization
Disenfranchisement
Religious extremism
Opportunity denied
Selfishness
Greed
Malice
and
Willingness to do harm to another


As if we didn't have enough to do. :)

Thursday, July 7, 2016

Power depends on inequality


Supply-side economics proposes that tax decreases lead
to economic growth. Historical data, however, shows
no correlation between lower top marginal tax
rates and GDP growth rate.
There have been attempts at equal opportunity and mutual benefit, and at caring for those less fortunate.  Today in America, the wealthy have a great chance at a great education, a great career, and a great income, but the bottom 80% or so do not.  For fifty years, they've lost ground, and the gap has widened. Why might that be?  Was it deliberate?

"Occupy Wall Street, the Arab Spring, the African uprisings, even the anti-austerity stance of new political parties in Spain and Greece, all have one thing in common: a recognition that the only way for a tiny group of people to become obscenely rich is for huge masses of others to be kept chronically poor." ~JASON HICKEL, JOE BREWER, AND MARTIN KIRK 03.12.15

Supply-side policies favoring the wealthy make them
wealthier at the expense of everyone else.  No
surprise. That's what we've done for
 four decades.
Is this perhaps a good time to reopen the discussion? It's called 'economic inequality' or the GAP, and it has spread through our financial system and trade agreements to the world. When 'too big' is part of the conversation, there are needed adjustments that are perhaps unlikely to be easy.

'Supply-side economics' or 'trickle down' are a known disaster for everyone except the wealthy.

Tax decreases on high income earners (top 10%) are not correlated with employment growth, however, tax decreases on lower income earners (bottom 90%) are correlated with employment growth.  No surprise.

So the continuing favoritism shown by each administration to large corporations and the financial industry is despite the evidence that such policies serve only the wealthy and do so at the expense of the common citizen.  Yes, that's what we see.  Government regulation appears to be available for purchase if you're wealthy enough.

Monday, July 4, 2016

Justification

"No God condones terror.  No grievance justifies the taking of innocent lives, or the oppression of those who are weaker or fewer in number."

Interesting remarks by the president at a prayer breakfast remind us that what we see in ISIS is not a uniquely Middle East horror.

"We see ISIL, a brutal, vicious death cult that, in the name of religion, carries out unspeakable acts of barbarism -- terrorizing religious minorities like the Yezidis, subjecting women to rape as a weapon of war, and claiming the mantle of religious authority for such actions."

"So how do we, as people of faith, reconcile these realities -- the profound good, the strength, the tenacity, the compassion and love that can flow from all of our faiths, operating alongside those who seek to hijack religion for their own murderous ends?"


He went on to paint reality as it is, "Humanity has been grappling with these questions throughout human history. And lest we get on our high horse and think this is unique to some other place, remember that during the Crusades and the Inquisition, people committed terrible deeds in the name of Christ. In our home country, slavery and Jim Crow all too often was justified in the name of Christ."

He didn't mention the thousands of lynchings of black Americans.  He could have, though.  Blacks, well into the 20th century, understood their place wasn't necessarily a safe one.  Lynching (reported) continued into the mid-60's (or 80's). Hate crimes continue.  Orlando, Dallas, San Bernardino, Boston.

March 2014, a leader of the Traditional American Knights of the KKK told a reporter, “We are a Christian organization.”  "It's not a hateful thing to want to maintain White Supremacy," he explained.  On a Twitter feed, he claimed the Klan is “about love for God, race and nation.”  Imagine the confusion in the minds of children being raised in that culture.

It's worth remembering that such hatred and discrimination are destructive and murderous. Justification by religious rhetoric only compounds the depth of harm done.

Dealing with root issues is difficult.

In 1970, I was in a Navy school in Georgia.  My friend Freddie and I had Sunday free and were glad for the chance to get away, go to church, and eat lunch off base.  At the Baptist church in town, we were met by the deacons as we entered, "You'll want to go someplace else," the head deacon told us.  It hadn't occurred to Freddie or to me that him being black was an issue.  I don't hold a grudge, and I hope Freddie doesn't, but that particular knife wound in my heart still hurts a bit sometimes.

When I see hatred and selfishness played out under some religious veil today, well, it's difficult to respond graciously, as you might imagine.  "No God condones terror.  No grievance justifies the taking of innocent lives, or the oppression of those who are weaker or fewer in number." (1)


Liberty and justice for all, as we're reminded today ...
That's our declaration, our deeply-held conviction, perhaps our calling.
We are thankful for every life and inspired by every individual who courageously stands for justice.  It's no small service.

___________________________________________________
Consider: Terrorism has no religion as a perhaps starting point for further inquiry.
Or (ref), (ref) (ref), it is an ongoing discussion and objectivity is difficult for the fearful.

Sunday, July 3, 2016

No big deal

Judge William Young sentencing the shoe bomber
Remember the fellow who got on a plane with a bomb built into his shoe and tried to light it?

His trial is over.

Prior to sentencing, the Judge asked the defendant if he had anything to say.  His response: after admitting his guilt to the court for the record, Reid also admitted his "allegiance to Osama bin Laden, to Islam, and to the religion of Allah," defiantly stating, "I think I will not apologize for my actions," and told the court "I am at war with your country."

Here's what the Judge Young had to say:

"Mr. Richard C. Reid, hearken now to the sentence the Court imposes upon you.

On counts 1, 5 and 6 the Court sentences you to life in prison in the custody of the United States Attorney General. On counts 2, 3, 4 and 7, the Court sentences you to 20 years in prison on each count, the sentence on each count to run consecutively. (That's 80 years.)

On count 8 the Court sentences you to the mandatory 30 years, again to be served consecutively to the 80 years just imposed. The Court imposes upon you for each of the eight counts a fine of $250,000, that's an aggregate fine of $2 million. The Court accepts the government's recommendation with respect to restitution and orders restitution in the amount of $298.17 to Andre Bousquet and $5,784 to American Airlines.

The Court imposes upon you an $800 special assessment. The Court imposes upon you, five years supervised release simply because the law requires it. But the life sentences are real life sentences so I need go no further.

This is the sentence that is provided for by our statutes. It is a fair and just sentence. It is a righteous sentence.

Now, let me explain this to you. We are not afraid of you or any of your terrorist co-conspirators, Mr. Reid. We are Americans. We have been through the fire before. There is too much war talk here and I say that to everyone with the utmost respect. Here in this court, we deal with individuals as individuals and care for individuals as individuals. As human beings, we reach out for justice.

You are not an enemy combatant. You are a terrorist. You are not a soldier in any war. You are a terrorist. To give you that reference, to call you a soldier, gives you far too much stature. Whether the officers of government do it, or your attorney does it, or if you think you are a soldier, you are not-----, you are a terrorist. And we do not negotiate with terrorists. We do not meet with terrorists. We do not sign documents with terrorists. We hunt them down one by one and bring them to justice.

So war talk is way out of line in this court. You are a big fellow. But you are not that big. You're no warrior. I've known warriors. You are a terrorist. A species of criminal that is guilty of multiple attempted murders. In a very real sense, State Trooper Santiago had it right when you first were taken off that plane and into custody and you wondered where the press and the TV crews were, and he said:

'You're no big deal.'

You are no big deal.



What your able counsel and what the equally able United States attorneys have grappled with and what I have, as honestly as I know how, tried to grapple with, is why you did something so horrific. What was it that led you here to this courtroom today?

I have listened respectfully to what you have to say. And I ask you to search your heart and ask yourself what sort of unfathomable hate led you to do what you are guilty, and admit you are guilty, of doing? And, I have an answer for you. It may not satisfy you, but as I search this entire record, it comes as close to understanding as I know.

It seems to me, you hate the one thing that to us is most precious. You hate our freedom. Our individual freedom. Our individual freedom to live as we choose, to come and go as we choose, to believe or not believe as we individually choose. Here, in this society, the very wind carries freedom. It carries it everywhere from sea to shining sea. It is because we prize individual freedom so much that you are here in this beautiful courtroom, so that everyone can see, truly see, that justice is administered fairly, individually, and discretely. It is for freedom's sake that your lawyers are striving so vigorously on your behalf, have filed appeals, will go on in their representation of you before other judges.

We Americans are all about freedom. Because we all know that the way we treat you, Mr. Reid, is the measure of our own liberties. Make no mistake though. It is yet true that we will bear any burden; pay any price, to preserve our freedoms. Look around this courtroom. Mark it well. The world is not going to long remember what you or I say here. The day after tomorrow, it will be forgotten, but this, however, will long endure.

Here in this courtroom and courtrooms all across America , the American people will gather to see that justice, individual justice, justice, not war, individual justice, is in fact being done. The very President of the United States through his officers, will have to come into courtrooms and lay out evidence on which specific matters can be judged and juries of citizens will gather to sit and judge that evidence democratically, to mold and shape and refine our sense of justice.

See that flag, Mr. Reid? That's the flag of the United States of America . That flag will fly there long after this is all forgotten. That flag stands for freedom. And it always will.

Mr. Custody Officer. Stand him down." 
______________________________________

Not bad, sir. Not bad at all.

Saturday, July 2, 2016

Citizens and their message to elected officials

Dear elected officials,
If we're not making progress toward LIBERTY AND JUSTICE FOR ALL, you're doing it wrong.  You need to shape up or ship out.  
 
For the scorekeepers, the bottom 90% have seen little improvement in recent decades while the nation's wealthiest have profited extraordinarily. Higher education is more difficult to achieve.  Social and economic mobility have declined, and economic inequality (the GAP) has increased.  That trend now infects the rest of the developing world.(1) (2) (3) Our elected officials did that, and that's both parties as influenced by wealth.

What might a nation's purpose be?  A corrupt and inexcusable outcome would be the advancement of the elite at the expense of all others.  That's the path we've walked for the last half century.  You can understand why the citizenry might be angry.


Friday, July 1, 2016

American History - The Nation's First Words


Here's a perspective that might look familiar to today's observant citizens.

Prelude to War!   In Virginia, the French and British were quarreling over land and the right to settle folks on it.  Land companies had been formed in Virginia to exploit the development of the region.  The French and Indian War that followed was just another contest, a continuation of the conflict between the two empires, and it was, as we now understand, an economic war for who gets the riches and the right to rule. 


The French and the British had long been engaged in conquest for wealth and expanse.  Claiming a land as their own, everything in it became national property. The method, sometimes called 'mercantilism', is a government's practice of controlling the economy for the purpose of increasing the wealth of one nation alone. It is monopolistic; i.e., an exclusive privilege to develop and conduct trade.  By granting monopolies to those companies and people whom they control, governments increase the wealth at their disposal.  That's how it works.

Mercantilism is sometimes described as economic nationalism, since it aims at enriching the nation at the expense of others. It is based on the premise that in international trade, one nation must gain and another must lose. 

Adam Smith spoke clearly against the idea in his Wealth of Nations. Mercantilism, he argued, is the equivalent of economic warfare, and often leads to war between nations. Free trade, on the other hand, when unencumbered by mercantilist practices such as government subsidies for certain industries, tariffs, and monetary restrictions, tends to promote peaceful relations between countries.  Is he right?  How are we doing?

By the time of the French and Indian War, the French and British empires had been at each other's throats for more than half a century. This would be but the latest engagement in a long series. These imperial wars spanned the European continent and spilled into to the Atlantic, the Caribbean and North America, into the Indian Ocean and beyond. The French suffered a humiliating defeat in the French and Indian War, perhaps one reason they were later eager to help the Americans in their rebellion against the British.  
1754-1763 
  • Nine years of the French and Indian War; meanwhile, empire and wealth rule.

1763-1774
    • King George raises taxes on trade in the colonies, hoping to salvage the Brit's national economy; their war debt is crippling. It causes opposition in the colonies, of course; the Tea Party, etc.  Tension escalates steadily through the years; violence ensues along with revolutionary rhetoric.

1775
    • The War of Independence finally begins with the battles of Lexington and Concord.
1776-1780
      • Our Declaration of Independence announces the birth of the nation, and the Articles of Confederation are introduced as the war rages on.

    1781-1782
        • The Articles of Confederation are ratified, and finally after seven years, the war ends.
      1783-1791
        • Our first years as a new nation, learning and laboring to build a process of good government.
        • The Constitutional Convention and subsequent ratification of our Constitution by the states.

      The path of revolution spanned decades.  The price was extracted in lives and deaths over those years and afterwards.  Childhoods and dreams, days of peace, of joy, and years - forfeit.  All for the sake of - our freedom.  And it changed the world.

      The Nation's First Words  --  The revolution was entered into by men and women who understood.  I will no longer sacrifice my life and that of my children for the sake of a king's wealth and dominion.  I will not pour out my life for some empire builder, nor will  I will sacrifice my children's future for some distant wealthy few who mercantilize the very reason for our existence.  

      "What do we mean by the Revolution? The war? That was no part of the revolution; it was only an effect and consequence of it. The revolution was in the minds of the people, and this was effected from 1760–1775, in the course of fifteen years, before a drop of blood was shed at Lexington."  President John Adams

      There was clarity and extraordinary nobility in that revolution and in the principles upon which the nation was subsequently founded; it was quite personal.  

      So today as monied influence again controls the political arena, as multi-national corporations rule the world marketplace, as trade has become yet again an economic warfare whose first purpose is the extraction of wealth from individuals and from countries for the sake of the wealthy few, what might the response be from a good conscience before God?  Is our culture focused on things of which He might approve?  And, how might He describe our lifestyle?  Is this the needle's eye, perhaps, through which neither camel nor the wealthy might pass?  

      If you've not lost a beloved father, a precious child, or a dear friend to the wars of empire and the economic warfare that continues today, you are unusual in this world.  Through poverty, deprivation, oppression, and armed conflict, most of us have. Gladly have the kings of this world offered up our children on the altar to their gods of wealth and rule.  

      As we were reminded on a recent Sunday morning, in the history of mankind, there's been only one who, rather than requiring of us the sacrifice of our children, has given His own son for the redemption of us all.  That which we see happening before us today is not the world He offers.  Not yet.  :)

      ______________________________________

      So, is this coming election a turning point in our national history? Or as some have suggested, is it the bottom of our decline beyond which we might rise to some more noble stature? :) Living through history is such a pain, and it takes years longer than we'd like. There are so many great things about being an American and about living in this country. We can only hope that this deadly era will one day be far behind us.



      From our declaration, and worth refreshing our memory,

      We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.--That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.

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

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