CIVICS 001: PROTECT YOUR GOVERNMENT'S STANDARD OF LIVING

On October 23, 2008 I published FROM TRICKLE-DOWN TO BAILOUT, a statement of my opinion of Alan Greenspan and his Laissez-Faire approach to U.S. economic policy.

This commentary drew the following question from Curt: "2q, do you have any comments regarding the presidential candidates' tax plans and how they'll affect the economy?"

To this I replied:

"Hold on to your wallet!

Whoever inherits the White House will have to increase government revenues. Look for not only income taxes, but ALL taxes, fees, licenses, etc to go up.

At the same time the Feds will probably delay, defer, or deny payments to states and cities.

This will result in local governments increasing taxes, fees, licenses, etc.

In a declining economy, a government has to protect itself, and maintain its own standard of living, by asking J.Q. Average to sacrifice more of the less that he has."

I said this in October and I've watched it unfold, piece by piece, since then. At the moment the Feds seem to be focusing on the spending side of the tax and spend equation, but the States have zeroed-in on increasing their revenues.

Consider the great State of New York. Skirting the ever-unpopular issue of increasing income taxes, Gov. David Paterson instead seeks to create "88 new fees and a host of other taxes". According to www.nydailynews.com "Movie tickets, taxi rides, soda, beer, wine, cigars and massages would be taxed under Paterson's proposal. It also extends sales taxes to cable and satellite TV services and removes the tax exemption for clothes costing less than $110."

And then we have the great City of Chicago…

Chicago has chosen to milk the public safety cow. According to thenewspaper.com, "Mayor Richard M. Daley (D) is counting on a host of new fees and taxes on drivers to balance the city’s 2009 budget... a new contract took effect on Saturday authorizing private vendor Redflex to more than double the number of red light camera equipped intersections in Chicago to 290. The first phase of the program had already mailed 1.1 million tickets worth $110m using just 136 cameras."

Again according to thenewspaper.com, "The new no-bid contract increases the Australian company’s five-year share of the revenue from $13,449,000 to $32,109,090… The 2009 budget also projects additional revenue from enhanced collection of fines related to vehicle impoundment.” Higher taxes on parking will boost transportation tax revenue to $161.6m. Combined with a vehicle registration sticker tax of $105.9m and parking lot fees of $5.9m, Chicago expects to earn $566.9m from drivers in 2009."

Remember, Public Safety is only one piece of the revenue pie cities manipulate to maintain the standard of living for their elected and appointed government officials.

Incidently, did you notice that Redflex is an Australian company? Redflex Holdings was listed on the Australian Stock Exchange in January 1997. During the worst depression America has seen since the 1930's some U.S. governments have found it necessary to eliminate U.S. jobs and pay-off foreign firms in order to support their own bloated standards of living. And this is just the beginning of our economic woes.

To sum it up, governments, like countries, are made-up of individual people. Each of these people have shifting goals and priorities. The one constant is survival. Most individuals in government and most individuals in a country, will do what it takes to survive. Do we really face a return to serfdom?

In November-December, 2008 I have watched my October prediction come true.


http://www.nydailynews.com/ny_local/2008/12/16/2008-12-16_gov_david_paterson_unveils_dire_new_york.html

http://www.thenewspaper.com/rlc/docs/2008/il-rdfcontract.pdf

BAILOUTS, CAPITALISM, AND THE AMERICAN WAY

On Thursday, December 11, 2008, 35 U.S. Senators voted to kill a $14 billion bailout bill for three US automobile manufacturing companies. One of the reasons most often given for their negative vote was the feeling that government should not interfere in our free enterprise economy. Since I've watched the U.S. government actively promote exporting American jobs, especially our manufacturing jobs, overseas for the past 35 years or so, I was curious. How did these same senators vote on previous bailout bills?

I chose to look at the U.S. Agricultural Industry, which has a long history of subsidized Rural Welfare that dates back at least as far as The Agricultural Adjustment Act of 1933. The most recent revision to this particular "bailout" is the 2008 Farm Bill. H.R. 6124, "A bill to provide for the continuation of agricultural and other programs of the Department of Agriculture through fiscal year 2012, and for other purposes" according to US Senate records, passed into law June 5, 2008. How did our non-interference Senators vote on this insult to their free-enterprise philosophy?

As it turns out, of the 35 senators who voted against considering a $14 billion emergency bailout bill for U.S. automakers already passed by the House, 26 senators had voted to extend Agricultural welfare, 7 voted against, and 2 did not vote. Individual senator's votes on rural welfare were as follows:
Allard, Colo - Yea
Barrasso, Wyo. - Yea
Baucus, Mont. - Yea
Bennett, Utah - Nay
Bunning, Ky - Yea
Burr, N.C - Yea
Chambliss, Ga - Yea
Coburn, Okla. - Nay
Cochran, Miss. - Yea
Coleman, Minn. - Yea
Corker, Tenn. - Yea
Crapo, Idaho - Yea
DeMint, S.C. - Nay
Ensign, Nev. - Nay
Enzi, Wyo. - Yea
Grassley, Iowa - Yea
Gregg, N.H. - Abstained
Hatch, Utah - Nay
Hutchison, Texas - Yea
Inhofe, Okla. - Yea
Isakson, Ga - Yea
Kyl, Ariz. - Nay
Lincoln, Ark. - Yea
Martinez, Fla. - Yea
McCain, Ariz. - Abstained
McConnell, Ky. - Yea
Murkowski, Alaska - Nay
Reid, Nev. - Yea
Roberts, Kan. - Yea
Sessions, Ala - Yea
Shelby, Ala. - Yea
Tester, Mont. - Yea
Thune, S.D. - Yea
Vitter, La. - Yea
Wicker, Miss. - Yea

It would appear that some U.S. Senators have an inconsistent commitment to Capitalism, Free-enterprise, and the American Way.

Bailout Mania, who's next?

Short, sweet and to the point…

The banking industry has fallen. The mortgage industry has fallen. Selected brokerage houses, and insurance companies have fallen. The auto industry is teetering. Who's next?

To answer this question, read your morning newspaper. Oops, you may not have a morning paper to read. And therein lies your answer. The newspaper industry is really on the ropes. After years of electronic encroachment (i.e. radio, television, and internet), newspapers are beginning to fall like flies.

As an owner, employee, retiree, creditor, or sharehoder of any newspaper in the free United States of America, it is time to stand-up and be counted. Demand your bailout money!

Thank God for lawyers, they'll set this country right, yet!