Showing posts with label government. Show all posts
Showing posts with label government. Show all posts

Sunday, March 22, 2009

The Common Sense Party Platform

Political philosophy versus “perversion” of the philosophy via the actual act of governing is fascinating.

From a philosophical perspective, I love both the ideas of Marxism (core belief that one’s labor should not exceed that which is necessary to produce the goods he/she consumes) and Libertarianism (emphasis on indiv. liberty generally with the goal of minimizing or abolishing government).

Of course these philosophies are more complex and involved than this, and many over the years have presented their views within the framework of these two core idea resulting in many philosophical branches.

Both Marxism and Libertarianism are nice ideas, but neither work in reality once the historic evidence of human nature is truly considered. So, the question becomes….how do peoples and nations effectively implement political ideas in practice?

There are also, of course, many branches of “liberal” philosophy and once society-based contextual considerations along with mud slinging from the other side come into play, lord only knows what we are actually talking about.

So, I think that I am going to start my own political party called The Common Sense Party (unfortunately for me, my definition of common sense does not jive with everyone else). The following would be the party’s core platform positions (of course, like any politician, the details of these positions will only be revealed once I am elected):

• “Fair” capitalism is the ideal practical market structure. People have to have incentive to better themselves and advance or many/most of use would revert to our naturally lazy selves. However, laissez-faire capitalism results in wealth and power being concentrated into the hands of very few. The “lower rungs” of society at that point do not have a fair opportunity for advancement as the rules of the game are decidedly stacked against them.

Rules of the “market” have to be created and adjusted as the market and society adjusts to preserve as much fairness and opportunity for all as possible. Markets are not natural entities, like oxygen, as some “free-market” advocates seem to imply. Markets are man-made structures (big games really) and the rules of the game need to be created, adjusted and tweaked as makes sense given market/game conditions and as new ways of beating the game are innovated by various individuals and organizations. Capitalism does encourage innovation both good and bad. New technologies, products, services and advancements are often, although not always, good. Capitalism also inspires other forms of innovation—besting/rigging
the system and other expressions of creativity.

Governments, comprised of elected and appointed officials are the only organizations that can logically be held responsible for enacting/changing rules (laws) to control the markets. Governments, as they are comprised of human beings, often go too far one way or the other resulting in the fundamental necessity for a changing of the guards—elections.


• A healthcare system in which people go broke trying to take care of themselves and their families (especially within a country as rich at the United States) is absurd. A healthcare system that has become so expensive that more and more people are unable to access the system is equally absurd. A healthcare system that stifles innovation is not best for long term progress. The magic question—where is the balance? France’s healthcare system offers some interesting ideas that should be considered. The British and Canadian systems have very real problems and we need to work to not repeat their mistakes.

• Access to quality education (pre-K thru advanced degrees) is vital to a successful society. Our public school systems, on whole, are broken. Public universities have gotten so expensive that we are excluding more of our citizens from participation. Both public school systems and public universities need to be both better funded and better managed. Throwing more and more money as inefficiently run organizations (which both public schools and public universities are often very inefficiently run) is not the answer. More money and better management has to be achieved simultaneously.

• Taxation policies need to be fair. To improve overall services to our society (healthcare and education to name two big ones) taxes will likely have to increase. However, taxation policies cannot be so stifling that they snuff out innovation and willingness for people to “give it a shot.” If taxes are too high, there is no/limited incentive for people to work hard to advance themselves and society.

• Helping hand up—not long term hand outs. I fully support government subsidized daycare for those who need it, government funded adult education/career repurposing programs, quality affordable education (as mentioned above), etc. However, if citizens are not willing to work and take advantage of these programs/opportunities…if they are not willing to remove their rear ends from the couch and turn off American Idol…they can rot for all I care. There are too many Americans with out of date skill sets and education—something has to be done about this.

• Protecting worker rights is critical. No one should be treated unfairly or work in excessively dangerous conditions. However, many of the labor unions are out of control. They have gotten as greedy and as self-interested as any poorly managed company. American workers are/will continue to pay a very steep price for this. Labor unions should have an important place in today’s world, but they need to make a 180 degree adjustment to their approaches in order to productively help/protect American workers.

• As a reasonable and compassionate society, social safety nets are important—unemployment insurance, social security, welfare programs of various sorts, etc. However, these programs can get out of control. No one in a country as rich as ours should starve or be denied core necessities and core services. Some citizens are just not able to support themselves—handicapped people, disabled people, etc. These people need to be taken care of. However, able-bodied people need to earn their own supper. Incentives for able-bodied people to tap into welfare and other social safety nets long-term cannot exist. Education and job skill training may be necessary in many cases (see above). In addition, many of us fall onto temporary hard times. There needs to be social safety nets for these situations via some of the above mentioned programs.

• We must take better care of our environment/planet. Cap and trade systems and other forced mechanisms are necessary because we are certainly not taking care of our planet under the current systems. Real recycling programs should be mandated. Currently, the higher oil/crude prices are the more incentive the market has to recycle. When oil/crude prices fall, there is disincentive. These practices are killing our planet. Our planet cannot count on us doing what is right as the result of our own free will—clearly we are not doing the right things and we have had plenty of opportunity to make the right choices.

• People owning unnecessary Hummers should be shot at dawn. Few, if any people I know in mainstream American society, need to own a Hummer.

• Social legislation (abortion, gay marriage, etc.) should, for the most part, follow a Sandra Day O’Connor populist model. When the fringes of society (either ultra conservative or ultra liberal) jam their views through the system, a society has very real problems on its hands. You can’t push a society too hard, too fast. You can’t try to hold it back either.

• Our Constitution is a brilliant document and needs to be respected. However, our Constitution, I believe, was designed to be a living document. Constitutional literalists, on whole, are using their “literal” arguments to jam ultra conservative views down the throats of the American people.

• We must respect the views, desires and cultures of other nations. American as a global bully will only continue to exasperate problems.

• We need a strong military, but not a military that mushrooms for no reason. Our military might is a last resort tool—must be used in full force at times (WWII), must not be used for needless and inhumane slaughter (Iraq).

• The religious and moral views of all people need to be respected. The separation of church and state is not an issue than can be compromised—for the good of both the state and the church.

• The Common Sense Party respects the vital and necessary role of government. However, our governments need to focus on doing for the people what they cannot do for themselves. The government should focus on activities that the private sector is not very good at doing. For instance, the private sector is profit driven. Potential profit that is too far down the road or is too small compared to the risk is not a path that the private sector will or should take. The government should have been aggressively funding alternative energy research for decades now—we could have avoided a lot of death and destruction. The private sector, with low oil prices, had no/little incentive until recently. Rapid oil consumption is killing our planet and is a very real national security risk. The role of government should be to step into situations like this—no/little profit in sight for the private sector, but the good of the people is at stake.

• The Common Sense Party embraces fair and productive globalization. However, raping less developed countries for their cheap labor is bad for the people of the world and is bad for Americans.

• Fiscal responsibility is necessary. At times, the government needs to deficit spend (to do for people what they cannot do for themselves). Times of economic crisis, times of necessary war are two cases in point. However, we cannot in good times and in bad spend money like mad and continue to lower taxes. Already, five full months of tax collection (Jan-May) goes to service our national debts. I am sure that the latest (necessary) stimulus spending will tack a couple of months onto this. We are approaching the debt practices of third-world nations. Eventually social services have to be cut sharply because tax dollars go largely to servicing the nation’s debt. Granted, we are fairly far from the numerous Latin American and other countries that essentially starve(d) their people to service their debts—but it could happen if we are not more responsible.

Government's Role: Protect the People From Themselves
The Peoples Role: Protect the People the Government--especially a government gone mad (e.g. the last eight years)

So, given The Common Sense Party platform—do you think we have a shot in 2012? On second thought, the last thing I want it to be elected for anything. I am perfectly happy to let President Obama continue to take a run at fixing the mess we are in.

Tuesday, February 17, 2009

The Toughest Tasks of All

TARP 1, TARP 2, the stimulus package. Likely more stimuli and likely more TARP-type programs in the months ahead. As nauseous as they make me these moves are, in my opinion, necessary.

The current economic crisis is being compared to the Great Depression and, yes, there are a great number of similarities. The primary barriers between most of us and the soup line are several of the New Deal programs put into place by Roosevelt—FDIC, Social Security, FHA, SEC, etc. But make no mistake; today the majority of us, without the air cushion provided by our federal government, would be in desperate straights. Times are tough, but most of us are not watering down soup, nor living in Hoovervilles.

Although we are being protected from starvation, I do not like being dependent on the largess of Washington to protect myself and my family. In the face of a true melt-down of our financial systems and markets, few of us are protected no matter how responsible we are. I save, I don’t spend money on a lot of unnecessary things, I live in a house I can afford, and I don’t have huge credit card bills. But, if our systems were to collapse, this responsible approach is worthless.

One could save responsibly for years, but if the dollar collapses, truly collapses, it could all be gone in the blink of an eye. I would be selling my wedding rings and scrounging my personal possessions for anything of tangible value to feed my family along with the rest of America.

I do not like this realization one bit. In fact, I detest it. So how do we avoid this type of calamity again?

1. Overhaul our healthcare system. No American should ever fall prey to bankruptcy due to medical costs.


2. Revise bankruptcy laws. With the assurance that no American will go bankrupt due to medical/healthcare situations, revise our bankruptcy laws for individuals and companies. Perhaps re-implement debtors’ prisons. Maybe this sounds arcane and medieval, but I am not kidding. Today, bankruptcy for many businesses and individuals is a financial tool, not an absolute last resort. Our bankruptcy laws facilitate irresponsible spending and unwise risks that fall straight onto the backs of the American people.


3. Institutional punishment for irresponsible corporate governance. A large part of what makes America great is our entrepreneurial spirit—our national desire and willingness to give it a shot. There is inherent risk in this approach, and we cannot snuff out our desire to “go for it.” However, our business leaders are smart people. In their hearts they knew better than to take the kind of greedy gambles that were taken in this and other “busts”—we all knew better (even though many of us chose to ignore our better instincts). But, our culture and our systems do not punish, truly punish, greed and irresponsible risk.


4. Institutional punishment for irresponsible personal governance. Per point #2, bankruptcy should not be easy, without consequence and there should be negative social stigma attached—today there is not. Today, filing bankruptcy is an every day activity hardly more traumatic than taking your trash to the curb.

5. Change the culture of corporate America. Corporate America is nearly entirely driven by quarter-to-quarter earnings. Many, if not most, companies no longer plan their operations for tomorrow—they are nearly solely worried about their next earnings report. Of course, earnings are important. But corporate America propped up (and will certainly do so again) their earnings with many short-sighted measures—essentially freezing wages for the true middle class, creating “exotic” financial mechanisms, cutting R&D investments……

America cannot and will not continue to lead the world with this type of approach. We have cut off, in many ways, the very hand that fed us—our people and our innovation.

6. Change the culture of our government. If businesses and individuals are responsible, so must our government be. We must create a culture of zero tolerance for unethical behavior. Granted, this is a slippery slope. Differing opinions, or mistakes made despite careful thinking are not unethical behaviors. However, the current turbulence has certainly forced more than one rat out of their holes.

Is it possible to avoid hysterical witch hunts, forgive honest mistakes, while holding each other, our business leaders and our government accountable? I believe that ultimately we are smart enough and reasonable enough to pull it off (I think…I hope).

As naïve and simple as it sounds, I often revert to the financial wisdom my father taught me as a child. Money does not fall from the sky. If you want something you have to earn more or spend less.

We can create all of the exotic investment mechanisms and creative business and economic models we like, but at the end of the day are we as a nation, as companies, as individuals spending less than we earn? This is the only question that matters. By posing any other question, by creating “bubble markets,” by creating inflated fortunes on paper, by creating a secular religion of spending more than we earn…we are just kidding ourselves.

The next bust will always be around the corner and at some point Uncle Sam may very well not have the clout or strength to pick us up and dust us off.