Dismissing Racist Explanation

 

Recently there has been some fluff that we couldn’t find American workers to build a new integrated circuit plant. Our workers say it is because they are not getting enough money. Boomers bemoan:

-Our kids are too dumb to get the jobs we used to have.

Depend on Americans to find the racist reason even when it is against us. Foreign workers may get less than citizens, but that is not enough for a business decision, particularly on a subsidized plant.

As I explain in this blog in Income Disparity and Bribes, in 1969 America removed discretionary fund as an accounting entry. This has several consequences. Companies moved the amount in that entry to executive compensation, so it is now after tax. Piketty’s book Capital in the Twenty-First Century has a graph showing executive compensation on an upward diagonal from 1970 on. CEOs used to get ten times base earnings. Take the difference then apply the tax rate gives us the total compensation, for the bribes and kickbacks required for business. Moving kickbacks out of sales and into management has dramatically increased right-wing fund raising. Politics provides cover for payments.

This has also impacted hiring. Arthur Anderson would come in over the top, but most hiring is decided at middle management. It looks odd for the CEO of a large temp or placement company to directly solicit managers. Foreign companies with the accounting discretionary fund entry have advantage in the American market. As Trump says:

-Foreigners can bribe us; Americans can’t bribe them.

You would think that American ingenuity could overcome this pettifoggery. Simply pass the money to sales. Such practice cements the clique. Without the accounting subordinates take advantage and abuse their position.

Chicago Chokes

 

Christine asked:

-Why is Canada burning?

Without hesitation I responded:

-Lumber companies planted the wrong trees and it got warm.

Seems glib, but in this case my cynicism was correct. If you go out on Google Earth, it is clear that the arboreal, original Canadian forest did not burn. Lumber companies proffer all sorts of rationalizations. Whatever they say, it didn’t work.

If they take refuge in regulation, consider the Exxon Valdez. Exxon Mobil went into court and said that Alaska did not require double wall tankers. Everyone laughed because the reason for that was because Exxon had lobbied against it. Covering North America in soot is a lot worse than dumping oil on beaches.

Lumber companies have no refuge. This is their game. They ran it. Lumber companies don’t own all the land, but they did the cutting. They didn’t know it was getting warmer? The cutover areas flamed. Arboreal sometimes burns, not like this.

Please prevent these boobies from planting trees. They barely harvest the forest. They clear the forest so they can plant the trees they want. Nothing burns as well as a tree farm.

-Look how fast they grow.

If they grow fast, they burn fast. If nothing were done, a varied understory would have to develop, that holds more moisture. From that understory there will come a greater diversity of forest.

-That is not profitable.

That doesn’t matter. The only use remaining for these companies is to pay out settlements. Whatever they did, it failed. Lumber companies have always mismanaged forest, so it has been, so shall it be. Whenever there is cutover there are severe fires. A conservatorship should be established. Hopefully, someone can be found who knows what they are doing to manage the forest.

Stop rescuing the forest. The lumber company solution is to build more roads so they can better manage the fires. Please don’t. Forests manage fires fine. It is the replanted cutover and fire control areas that are dumping the smoke.

Why are Canadians nice? Canadians are the ones who had to leave the USA. Those nice Canadians should nicely tell the lumber companies to get the nice out.

If Canada fails, Chicago has no shortage of lawyers. Some of those lumber companies are US. This is a class action suit. What can’t a Chicago lawyer do? I can see the lumber companies trying their smug and stupid in front of a choking jury. The lumber companies will say that this was caused by a lack of lumber demand that kept them from harvesting enough before it burned.

-Fly my pretties, fly.

Calling It for Inflation

 Inflation wins. We have already had severe capital inflation. Eventually, when rich people spend money, it impacts wage earners. Trickle down becomes a torrent of prices. The pressure for wage inflation was held in check by undocumented immigrant labor, destruction of unions, imports and, until recently, interest rates.

Then DJT and Steven Miller terrorized the undocumented immigrants. Terror works, particularly institutional terror. Mexicans love their kids and they quit coming. Fruit rots on the ground. Stores are closed on Monday. We still get immigrants, but they are refugees, and they have status. Undocumented immigrants set the marginal wage rate low. A documented immigrant is less likely to endanger their status by driving the truck or recycling shipping containers. Without our slaves we have to be more rational and that is expensive. There have been multiple economic shocks and we are no longer as cushioned.

There is also demographic. A lot of us are retired and indexed. We will pay our mortgages and student loans out of social security.

Inflation makes more sense when you distinguish between capital inflation and wage inflation. The dirty secret of the Federal Reserve was that raising interest lowered wage inflation and increased capital inflation. But manufacturers and any other interest sensitive companies were sacrificed in 2008 to the finance industry. Companies that survived are less likely to feel the rise in interest rate and will keep hiring. So now the Federal Reserve is yanking on a loose lever, employment is no longer as dependent on interest rate.

Banks depend on interest rates. I am shocked that Silicon Valley Bank went under. It is fun to see everyone dancing around rescuing SVB clients. SVB was supposed to be the smart ones. Bankers are dumb, but SVB was playing by the rules, admittedly rules they lobbied for, but the same across their midrange sector. SVB going under means that all banks are in danger. The Fed rapidly cranked interest rate. When SVB clients realized they could get better return, SVB was holding onto paper paying the earlier low interest rate and cashing out lost the bank money. If this isn’t a failure of Federal Reserve regulation, then it has to be a failure of Federal Reserve policy.

Please don’t mention reserves. There is no reserve requirement. Capital requirements are thinly veiled silliness. You can’t expect banks to hold cash.

Raising interest rate this quickly will crash more banks, long before it impacts employment. The Fed can crash as many banks as it wants, it can nationalize the banks, the fight against wage inflation is lost.

Sewer Valves

Many people in Oak Park, a suburb of Chicago, are installing sewer valves for their homes. Some years back we had an impressive deluge and this is a reaction. Your stack or stand pipe may drain directly out to the street sewer. Putting a check valve or flapper in the way means that when the system hits load those houses refuse service and the overall pressure on the system will increase precisely at the time it is stressed. If you don’t have a flap then super tough on you, the effluent has to go somewhere. A product that creates its market. Once everyone has flaps there should be popped flaps or broken pipes.

Flaps are necessary on flood plains. As flood plain construction is common it is difficult for other municipalities, such as Oak Park, to deny their use. Chicago used to require a basement floor drain. You were expected to share your suffering with your neighbors.

Most people have their stack drain into their own sewer that then drains into the street sewer. This is a nice feature that gives the system some bounce and durability. Typically, however, the new flap is inserted between the two sewers. This creates the same shock on the system as above. I think the next deluge will disappoint those homeowners. As I remember it, I heard the sewer cover on the home sewer bounce. There was, for a moment, about a foot of water in the yard. It was the yards’ water coming into the home sewer that went up the stack and flooded the basement. Blocking the street sewer alone will not protect your basement. Maybe a sewer lid gasket on your sewer along with the flapper would work. But then it wouldn’t take the normal drain from your yard, increasing the chance of seepage.

It would be better to place the flap between the home and the home sewer. This would give the street system some bounce and also protect your basement, if not your yard. Unfortunately, if you examine your sewer, you will see that this is a deep connection. At that depth the pressure might overwhelm the flap. If you do not mind advertising that your house floods, you could break through your foundation to put the flap near the stack. Might as well put in the sump pump while you are there.

While you may disdain allowing the sewer unfettered access to your home, consider placing the flap between the stack and basement source. The flap would deny sewer water the exit of your basement without threatening system integrity. Water seeks its level; it can’t go higher in your house than it is outside. It’s just a matter of boundaries. Again, you will have to break the foundation.

The real secret of the Victorians was their plumbing. Failing all else perhaps install a new water closet somewhere upstairs, move the washer and drier up there as well, close off the basement plumbing and then you won’t need a flapper.

Inflation

One proof of the market is that economics is obscure. Because of patronage there is no advantage stating the simple obvious. As I am not getting a grant, I can be direct.

Inflation is manifest differently in each of its many components. My parents bought their house for almost $12,000 in 1959. That was about twice my father’s yearly salary. Today the house is almost half a million in Zillow which would be about ten times the salary of a comparable position, give or take. There are some equivalents. Maybe there is a correspondence between a year’s college tuition and a new car. The social security cutoff seems to be about what it takes to comfortably support an upper middle-class family of four.

Inflation has two classes: wage inflation and capital inflation. There is no government control of capital inflation. Wage inflation is controlled by four government agencies. The Department of Labor supervises unions. Immigration is restricted. Commerce allows imports. The Federal Reserve controls interest rates, at its simplest by buying and selling bonds. Raising interest cost chokes off small business, the business which competes for labor.

This time, the Federal Reserve was slow to raise interest rates because they failed to recognize a structural change to wage inflation. Terror works, particularly institutional terror. Unlike many, Mexicans care about their kids; they didn’t want Immigrations daycare program. Immigration and Naturalization determines who is legal. It is the illegal immigrants who set the marginal cost of labor. Without our slaves the United States has to rationalize our markets, which is more expensive.

In earlier times if shipping containers were piling up at the ports someone would have told Jose to recycle them. Joe will refuse. It’s not enough money to risk jail.

When you see crews hired out of 7-11 again, you will know that “inflation” is declining. Without marginal competition, the Fed is pulling a busted lever.

Insult Factor

Samuelson’s Economics has an entire chapter worrying over wage rates and the efficient allocation of labor. Why do people change jobs? Samuelson would like to tie it to capital allocation, work duration…he doesn’t mention the insult factor.

I know a guy who loved his job. He was proud of the job and the work he did. When he learned that someone else made more than him, it was too much. He quit even without another job to go to. Nothing else had changed. It was simply that he felt insulted.

Managers fail to understand the insult factor. Headhunters understand it. Unions understand it. Customers understand it. Why go through the folderol of a manufacturer’s rebate? If you are getting points, then someone else is getting ripped off. When the price at the aisle doesn’t match the register, you feel insulted. Bombing me with ads texts and emails after I have bought the product is discouraging. When a headhunter offers a better deal, it feels like your own company doesn’t value you.

Companies don’t realize that when they throw out puff pieces about how great they treat employees that it becomes insulting. I was at a company where headquarters was running a morale building exercise awarding the discovery of efficiencies. This was a software company. We were out there, bare knuckle fighting for sales. The company announcements were intensely demoralizing.

There are times when corporations engage in worthwhile activities and then advertise their altruism. But if you are engaged in a tough, demanding, hopefully profitable, endeavor so someone or even yourself has to prattle and prance with little regard for the bottom line it is an insult. Halos are for heaven. The appearance of beneficence becomes a broken promise. Corporate philanthropy means they are not paying enough taxes.

I was assigned to a project that was disgusting. They told me it would only be for a few months. After the few months I was gone. If they hadn’t promised I might have stayed longer. Promises matter. I’m canned if I fail a deadline.

We are ruled by the marketplace but our reasons are complex. Telling people how great they have it while they are under the hammer brings the union. Going to the moon doesn’t cut it. The upper class has to understand that you don’t insult the help. 

Supreme Court

The Supreme Court functions as a safety valve. When the court fails, it is a big mess, we have had a civil war. In 1974 people were voting with their feet. Illegal abortion was so prevalent that the court had to act.

The prisoner’s dilemma underlies our concept of justice. Say a juror is fixed. How does the juror know that they will be paid? If they are paid ahead of time, how does the fixer know the juror will stick?

At this time, it has been announced that there are five judges who will rule against abortion. The early decision is a blatant loud fart. As Biden explained, it ignores the ninth amendment. The ninth amendment is intended to prevent this argument. As Pogo said:

-I got rights I ain’t even used yet!

If privacy or women’s equality are rights, then abortion should be legal. Buttigieg explained why abortion, whatever the term, should be a private family, not an arbitrary government decision.  It is a difficult medical and personal decision made in hard circumstance.

The judges are receiving constant renumeration: speech engagements, book deals, private excursions… Once the decision is reached, the gravy train stops. There are attempts at reassurance: further issues, maintenance of the decision. Out of the five justices, one has to realize that it will be more profitable if they renege. It may even be more profitable for the dissenter.

The early release of the decision physically endangered the Supreme Court. Congress is debating increased court security. The early release also put the matter up to bid, one last squeeze. It might appear that publishing the decision and source confidentiality is covered under freedom of speech and the public’s right to know. But this endangered all the justices. Sounds like an issue for the Supreme Court. Except that the court should recuse itself. Given the surveillance state and all the money spent, it must be known who leaked the decision.

If an amendment is required keep it simple. Allow no wiggle room:

-Abortion is legal. 

Street Rap

There is a new word, apophenia, created by Klaus Conrad to describe false correlations. I propose a duality with gestalt. This isn’t fair to gestalt. Gestalt is intended to break you out of your current patterns and recognize more useful ones. Sometimes we recognize incorrectly. Let us apply this duality to the USA invasion of Grenada in 1983.

When Thatcher remonstrated with Reagan over this breach of international law and convention, Reagan responded that he wanted some nutmeg for his eggnog. This was just after England had defended the Falklands.

While this remark is appropriate within the history of the spice trade, in 1988 Grenada exported 2,230 tons of nutmeg and 256 tons of mace for a total export value of $15,761,107. This was a good year.  Let us find the street value. 2,486 tons is 87,691,069 ounces. I have a price of 6 ounces is $10 listed on the internet currently. Divided by 6 is 14,615,178. Times $10 gives a markup of more than 10 times the export value. Somewhere in that 100 million there might be funds to influence policy.

The tragedy of the commons as applied to institutions, bribes, is precisely because the profit of such actions far exceeds the expense. Congress scrounging for contributions for example. Winners get to fix the game is the whole point of Adam Smith’s Wealth of Nations. Military is a sunk cost.

Take the financial value of the nutmeg. The trade in nutmeg supports various business institutions. The multiplier of financial value is constrained by the reserve requirement. If the reserve requirement is 20% then the multiplier will be 5. There is also interest and the future value of money. Taking an arbitrary value of 5 as the multiplier times $100 million, on an annual basis, almost sounds like money.

The financial value of nutmeg is constrained by its earnings and uncertainty. More fungible assets, oil reserves, undeveloped land, don’t have that limitation. Each financial transaction requires reassessment of the asset. The development of land or the pumping of oil can crash their financial value because they are now associated with earnings. Dreams sell. It is a shame that we don’t have the technology to claim oil reserves without digging and then capping a well.

In 2021, China is harassing the Philippines over their oil. This seems silly. Where is the Philippines getting the financing to develop their oil? What is the market for the Philippine oil? All that is being determined is which Chinese company will develop the oil. Until one realizes that it is the financial value of the Philippine oil reserves that turns Chinese Communists into slathering greedy imperialists. We need to find means for nations and their populations to profit from the trade in financial value of their assets.

Returning to the events of our invasion of Grenada: Maurice Bishop, the Prime Minister of Grenada, negotiated a better price for Grenada’s nutmeg. Within the month, Bernard Coard with the support of Cuba overthrew and murdered Bishop. An important American principle had been violated. It is yet another humiliation that our founders chose our name in the belief that we would one day physically cover two continents. As it is, we dominate those two continents. The principle is that if you are going to fix it in the Caribbean, you don’t go to Cuba, you come to US’ns.  After the US invasion, Grenada lost Russia as the largest and most generous buyer of its nutmeg for a time.

The financial value of Grenada itself can be understood as its debt. Through debt restructuring, grants, tourism, and selling passports enterprising Grenada reduced its debt from just under a billion US dollars in 2015 to 720 million in 2019. This is an island of 112,523 people and 134.6 square miles. In 2019 unemployment was 15.2%. In 2018 debt was 62.7% of GDP. I Don’t know how the population would have fared under General Austin. Austin took over from Coard for six days before our invasion. Today the primary industry of Grenada is debt. President Reagan’s comment was factually invalid, the invasion was not about nutmeg. The statement was in the correct spirit.

Applying the principles of gestalt, the event of the Grenada invasion took place in the context of the United States of America Empire. A good example is the career of Aristide, the prime minister of Haiti. When Aristide was overthrown in 1991, the Haitians didn’t waste time singing or smuggling guns, they lobbied Washington until we sent forces to put him back. This is how to deal with Empire. Unfortunately, drug cartels and industrialists have more clout, and Aristide was back out again.  Haitian debt is a fiction. As Haiti has no autonomy the debt is treated as ours and we pay the interest. Statehood for Haiti.

Whispers in the boardroom bring deaths in the jungle. If we are to get past the flutter and theater, we must understand the profit.

Material Analysis 2019

Historical Materialism was once all the rage. Freakonomics is historical materialism without Marx. I am giving an overview and then showing how Marx and basic questions about material conditions can enlighten.

Review of Marx

Wading through the invective and gossip of three or four volumes of Marx’s Capital to find the nuggets is tedious:

1. dictatorship of the proletariat
2. labor theory of value
3. class struggle
4. money isn’t capital
5. failure of colonialism
6. Centralization of production leads to unions.
7. business cycle
8. Competition drives down margins in investment and production. Profit requires disaster and  disruption.

You’re welcome. Sorry if I missed any. These ideas have been absorbed into common use. Occasionally an economist makes a living inveighing against or rediscovering one. Bernanke’s bad asset class or Tom Peter’s excellence, for instance. Here is a list of some other market issues:  

1. Winners change the rules.
2.  Parkinson’s Law
3.  Peter Principle
4.  Dilbert Principle
5.  treat vs cure
6. positive reinforcement frustrated by regression to the mean
7. products that create their markets

In fairness Communism is new and these issues also occur in markets:

1. People want things.
2. Some are more equal than others.
3. filthy factories
4. Aldi vs Target
5. responsibility for failure
6. excessive quality
7. standing committees

Socialism is treating constituents as donors. Socialism requires accommodation with Capital. Capital has no honor.  Lyndon Johnson was our socialist president. The few remnants of his programs stand against constant attack. The nature of accommodation defines the socialist. Are you a national socialist or an international socialist?

Where is the money?

Investors seek disruption and avoid disaster. One future disaster is described by the Council of Institutional Investors. The PDF on their website lists over one hundred companies that have unequal voting structure. These neutered shares form a large percentage of the market, indexes and funds.  Ask the Winklevoss brothers about Zuckerberg.

The obvious disruptor is China. The tax cut of 2019 releases capital to invest in China. Republicans were so anxious to free capital that they capped real estate taxes. Real estate taxes are noxious because they fund local services and thus encourage social segregation. The Republicans were following the age old schism between north and south. Southerners regard infrastructure as boondoggle. When the north got free after the civil war they were able to invest in light houses, canals, and railroads. Don John’s trade war with China backs up the boat so more investors can get on.

What is the Vote count?

Don John’s victory is attributed to racism, sexism, and jobs. Yes, but these terms lack content. It is asked why those who voted for Obama then voted for Don John. It wasn’t that many. Obama’s percentage of popular vote was not that great. It was the emergency room doctor; the guy comes to in the emergency room, looks up and says to himself:

-I hope he knows what he’s doing.

We were facing disaster. Stupid wasn’t working, maybe we should try smart. Considering how bad it was and the obvious disparity of ability, the percentage was pathetic. What surprised me was that after the guy got out of the hospital, he was so mad that he took the cast off with a hammer, was in such pain that he got drunk and then drove home.

Obama, from the same neighborhood, has Hugh Hefner's I can’t believe this smile. He is proud of being president and proud of the country for electing him. Like Tom Robinson, he felt compassion and tried to help. Like Tom Robinson this provoked their rage. If Obama cares about them, it means no one else does.

Sexism also lacks emphasis. Don John is a pimp. His entree to Manhattan was young girls and coke. The hospitality industry respects the auxiliary. We didn’t all come from the little house on the prairie, which wasn’t such a great deal either. Some of us came from the little shack by the railroad. The reason Miss Kitty had a heart of gold is because that was mom. Mom got beat on the street and Marshall Dillon walked by, or maybe it was the marshal beating her. Whoever, that was Dad. That’s why she kept you. Coming off the exit ramp you will see a gas station, fast food franchise and a motel.

Don John’s abuse of immigrants has an impact. The fruit rots on the trees. Restaurants have off days. The minimum wage has increased. This woke the Federal Reserve. The Fed sees inflation as wage inflation. Raising interest rates chokes off small business, the business that competes on wages. The reason the Fed has forborne is that they recognize a blip.

What should the Democratic Party do to win the 2020 presidency? Recognize demographics. There is no Hispanic voting bloc. There is no women’s voting bloc.  There is no youth vote. The middle class is tiny. There are only two voting blocs, those who vote their interest and candidates: racist and black. There are numerous triggers but only two actual segments. The black vote deserves more than smiling and playing the saxophone.

Who got paid?

Most presidents had foreign loyalties. When Kennedy said he was a jelly donut he was expressing a loyalty that he shared with his father. Hillary strikes me as an old fashioned French girl. The puzzle is Putin. I can understand the satisfaction of paying the US of us back for installing him. But this is dangerous. He is twisting our tail and he is the leader of a nation. Why would Putin think he is blessed? Putin got paid.

Who paid Putin? The likely candidate is the Health care industry. When Hillary proposed her fetcher bill the Saudis sat down and Ross Perot complained about the service. I haven’t seen that money since Nixon’s drug, I mean trade deal with China. There is such profit that it would be irresponsible for health care, drug and insurance, to let Hillary beat Don John. Electioneering doesn’t change minds, it works the edges, and it matters in tight elections. Why did health care off shore its electioneering? Don John is unreliable and Putin doesn’t report.

Historical Inevitability and United States History

Usually historical inevitability means the king is great, the empire will last forever and I want to keep my job. The counter story, Noah, Gilgamesh or Ur, is that when you live on a delta surrounded by mountains things may change, someone building a boat in the middle of a plain may not be ridiculous and you should be nice to the hill kids. The first to directly disagree with inevitability as permanence was Adam Smith. Smith liked explanations. Smith said empires inevitably fall because they are inefficient.  He attempted to convince England to abandon empire, particularly the American colonies. Wealth of Nations, Smith’s book, is not taught despite its central place in political and economic philosophy.

I think the fall of civilizations is more basic. I was in Cahokia, Illinois at the Native American trash heaps. The museum said that this town only lasted about two or three hundred years and they didn’t know why. Two or three hundred years is a decent run. How long can people stand to live with each other? Generation conflict in hierarchical social structures is destructive. Especially surrounded by trash heaps:

-Let’s put Roger on top of the trash heap.

-Why will he stay up there?

-We’ll tell him he’s in charge.

Karl Marx’s ponderous Capital is taught more frequently than Smith. Read Smith first. Don’t bother with Hegel: things don’t turn out as you expect big deal. Marx speaks to Smith and he expects you to have read the basic work.  Marx’s attack on Riccardo is confused with attacking Smith. Riccardo claims to be a Smith partisan. Riccardo is a turgid waste of time. The subtext of Riccardo is that Smith was right except for a few details, but we know what we are doing and our empire will survive. Marx conscientiously knocks down Riccardo’s arguments, implying that of course this empire will fall as all the others.  

Smith has a clever argument that feudalism was brought down by consumerism. Nobility preferred things over people, leading to Noble’s impoverishment. Marx hates this idea. He goes on about the Crofters who were self-sufficient with their own land and crafts. Manufacturers passed laws forcing Crofters off their land and into factories. Unfortunately Marx adds a comment about now being able to join unions which was used as an excuse for collectivization. Marx was describing an atrocity. Recent events in Soviet Russia and old Communist China confirm Smith’s observation. People want things.

Don’t be smug. The Freakonomics series of books provides examples using Smith’s systemic principles to analyze current events. The authors throw shade on global warming.  I think I understand. James Hansen argued that greenhouse gases would create a logarithmic global warming curve. This was a fairly optimistic prediction. Hansen didn’t appreciate the amount of organic material trapped in permafrost. All curves look similar at the origin. Hansen hates soot. His recommendations are predicated on snow cover. Now that the cover is gone, the recommendations should be reexamined. The Freakonomics chuckleheads said:

-I know curves. That’s Malthus. Heh heh.  

Malthus observed that populations increase exponentially whereas agricultural output had increased linearly. Recognizing the problem, science stepped up and agricultural output has exceeded population growth.

Medicine has also improved. Because antibiotics are fed to livestock, each new antibiotic becomes ineffective. Any scientist who comes up with another antibiotic should be taken out back and thoroughly slapped. They are digging wells in the Sahara. The advances of science lead us to global warming. Malthus was never disproven. The curves will still intersect. Freakonomics is saying that we don’t have to pay attention to scientists because science will save us.

The check on human population is prosperity. When people are prosperous they don’t have as many kids. If trends hold we will plateau around 10 billion. Foul ups mean increase in population. The other issue is footprint. I sneer, quite rightly, at my neighbor driving his F150 to the lake with his jet ski while I drive my government subsidized hybrid to Madison with my road bike for my meet up. But we both have footprint. Freakonomics is being ninnies because the only political philosophy that promises prosperity without consumption is communism.

Socialism is consumerism on steroids. There is nothing wrong with a socialist having a Ferrari.   We should all have Ferraris. Then we can race.

Just because Capitalism fails doesn’t make Communism inevitable.

Don’t pester scientists for solutions. The low cost immediate ameliorative for global warming is nuclear winter.

The search for inevitability leads to geography. Geography is destiny because it defines why we hate each other. In my grammar school, the teachers divided the playgrounds between boys and girls. Once we knew the sides, we fought. The people of the delta, the people of the mountains, the people of the plains, the people of the coast, the people of the woodlands, the people of the desert, we all hate each other.

Japan and Korea hate each other. Looking at the globe, this is easy to understand. Japan’s isolation exacerbated the problem. Every foreign contact was a typhus outbreak. When the United States busted open Japan and demanded trade, Japan reacted by mimicking our worst features. They chose a state religion and conquered parts of Russia, China and Korea. My greatest fear of North Korea is that they will provoke Japan. You would think they’d know better.

China and Vietnam hate each other. Vietnam is gorgeous, one long nonstop beach, mountains, delta, farms, jungle, forest.  Say Vietnam was adjacent to the United States and despite our best efforts was still an independent nation that spoke Vietnamese. Everything the Chinese do is with the objective of someday being successful enough to take Vietnam. Vietnam knows this.

England, France and Germany hate each other. Newton stole Calculus from Leibniz. Leibniz was dependent on patronage and eviscerated by Candide.

In the United States, North and South hate each other. The North is right.

Recently agriculture has been held responsible for warfare. A male genetic bottleneck was discovered about 8000 years ago around the start of farming. This corresponds to finding ritually slaughtered groups of people. I think sedentary populations activated the human lekking reflex. Women selected the same father for their children. This would have aggravated the spread of venereal disease. The slaughters were response to epidemic. Dementia, particularly venereal dementia, is often characterized by a demeanor that can be both terrifying and infuriating.

War is excused as sharpening technological development. We are discussing inevitability. What matters is more difficult. Competition for sales leads to human development. But competition leads to collusion. War is seen as an antidote to human stasis. But war itself competes for capital investment. Marx spent an entire volume pounding in excruciating detail the difference between capital and money. The reason that stocks do well in inflation is that money and capital are different. War is a reaction to human progress and the, may I say it, inevitable social development described by Marx. It may not be communism, but it is change. Does it matter? Yo Helot.

Military industry has gained prominence as a cause for war. Since military industry competes in the capital markets it has retarded consumer industry. Because of the concentration of military consumers, military capital investment employs less people making it inflationary.  It is argued that military research is more productive. I will concede that government research is more productive.

The major cause of war is atrocity.  Different peoples favor different atrocities. Starvation is favored by the Russians and the British. Part of Adam Smith’s disrepute is that the British used market forces as their all-purpose explanation for atrocities.  If you see a smaller vulnerable group provoked to hopeless conflict, the British are egging them on:  Kurds, Baltics, etc. the Lawrence of Arabia syndrome.  The Japanese renounced war when they realized they could no longer see their enemies eyes as they were killed. USA is known for bombing and military aid.

Military aid is particularly disgusting. Living under a dictatorship is bad but it doesn’t have to be impossible. Eventually even the dumbest colonel notices that if people can go to work in the morning and return to their families in the evening the colonel will get a bigger take and may even be allowed to escape and enjoy their Delaware bank account.  Unless someone gives the colonel a few billion and tells them to kill the terrorists or whatever:

-Sure them too.

We have opened the gates of hell throughout the world.

I’m tempted to say materialist, let us take a systemic view of American colonial trade:

Imports	Exports
slaves	gold
indentured servants	silver
manufactured goods	land
earthworms	sugar
Honey Bees	cotton
Small Pox	tobacco
horses	peppers
Measles	chocolate
malaria	syphilis
apples	beaver
tea	potatoes

There are better lists, see Colombian Exchange. By land I do not mean that soil was dragged to Europe but rather the concept of land. Land rights and sovereignty over land are precious.

The forests we see today are far different than pre-colonial forests because of the European earthworms.

Smith derides the Spanish obsession with gold and silver, just creating holes in the ground. Keynes makes an allusion to burying money so people can dig it back up.

If you were to approach anyone throughout the world at the time of the American Revolution and ask for the news, they probably would not mention us. The issue of the time was whether France or England would rule the world.

The American English colonial population was around two and a half million including slaves, excluding Native Americans.  The population of England was less sure, say eight million. Britain’s anthems avow that they are a monarchy, they are not slaves, they are lucky and they run it. Britain’s opposition to slavery is due to their experience with the Barbary pirates.

George Washington was Virginian. Virginia’s principal export was tobacco. Prosperity was a consequence of how large your tobacco plantation was. This led to fierce inbreeding which led to an intense lekking environment governed by ostentatious display. Washington was a poor relation somewhere in the hierarchy to a good marriage to a plantation owner. Having a small estate, Washington was smart enough to earn money and land as a surveyor. The irony of surveying large tracts of wilderness while owning small holdings must have been obvious. His gentleman’s status entitled him to a paying military commission in the colonial forces. The French and British were engaged in a little bump and shove. The real point was to get Native American tribes to fight each other. Surrounded by the forests of Pennsylvania, Washington went mad and murdered a French officer.   

Nothing comes from nowhere. If Washington had not killed Jumonville we would still be part of the commonwealth. The subsequent French response made it clear that Native Americans, settlers, and soldiers died, not gentlemen. Washington’s force was subdued and Washington signed a confession. This started the Seven Years’ War, a global conflict involving all the colonial powers. As usual, burgeoning population threatened the existing social order. Jumonville perfectly crystallized the threat felt by the nobility and gentility.  In continental America the French were primarily fur traders, with few coastal harbors. So the British won. The French were depending on their strong European continental presence to win sufficient victories to bargain for their lost colonies, didn’t happen. The British navy and continental treachery frustrated the French. The British had expended men and fortune holding their colonies. Now was the time to balance the books. Faced with paying for their war, Britain’s opposition to slavery, and squeezed by the British loans and controlled prices, the colonies chose treason.

Robert Morris financed the rebellion. He knew that even with his great wealth, he would be squeezed next.

Tories, loyal subjects of the king who believed in paying their debts and opposing slavery were tortured in front of their family and neighbors and robbed of their land and possessions.

Washington’s military career was not as prosperous as he had hoped. The British were unhappy about Jumonville and a few excesses. But he had enough success to marry well, which was the point. His eventual commission as head of the Continental army was due more to his social prestige and position than his military background. The miracle was that ex slaves, farmers, and rabble followed the foppish Virginia plantation owner. They must have shared his avarice. He had learned to keep his mouth shut.

America sent our best man, Benjamin Franklin, to the fecal encrusted palace of Versailles. The French obliged with a few mercenaries, adventurers, funds and gunpowder. Washington skimmed the French funds for his plantations and land acquisition. Eisenhower was a genius, Butler won the civil war, but Washington, for all his faults, was the last American general who understood attrition. Washington must avoid a victory that only changes British command structure and strategy. He wants the British generals he has, thank you very much. Another constraint was the gunpowder drought. The English had gunpowder and the colonials didn’t. If France had stayed out of the conflict the colonials and British would have bled each other white and France might have both continents. By another miracle Franklin danced his silly dance, wore his silly hat, and dragged France into the rebellion. 

France sent General Rochambeau and Admiral de Grasse. Trained from early youth to their professions they fought a coordinated land sea battle that defeated the British at Yorktown.

Washington didn’t want to go anywhere south. He rightly feared slave insurrection. The South’s failure in all its conflicts is due, in part, to the necessity of maintaining garrison to forestall such rebellions. The British, as they do, were stirring up the indentured servants and slaves. They enlisted a few, but if they had armed the slaves the British might have won. Washington was dragged to Yorktown with Robert Morris footing the bill. 

With the war won, Washington made his worst mistake. Franklin was exhausted. Washington sent Jefferson to replace him as ambassador to France. Thomas Jefferson was a master of disingenuous sanctimony. When they had to perfume the pig: defend treason, bankruptcy, and slavery, Jefferson was the guy.  Washington just wanted to get Jefferson as far away as possible.

It was time to settle accounts. The French King would get the tobacco concession. Everyone was in hock, but with trade moving it was possible they could pull it off. The Virginia planters including Jefferson, American excises, Robert Morris, Haym Salomon, and the French monarchy would all be put square, or at least able to front. Then Jefferson and his best friend Lafayette, American war hero and French minister of trade, pissed on the deal. Why? Why would Jefferson do that? The Virginia planters were ruined. Jefferson was ruined. There were no tobacco excises. Robert Morris, Hyam Salomon, and the French monarchy were ruined. Why would anyone trade with this new country that couldn’t even do the tobacco deal?  From Jefferson’s point of view within the Virginia hierarchy if everyone is bust then he is equal.

-Not with my Tabachy.

With little excise coming in, Morse and Hamilton decided to tax whiskey. They didn’t want their loans defaulted on. If you were a subsistence farmer in the middle of nowhere the only good worth dragging over the mountains to market was whiskey.  The large distilleries didn’t appreciate the competition, so the tax was to their benefit. The farmers resented a tax on the poorest that cut their one source of tools and supplies. Some of the farmers were Washington’s tenants but they had long since realized that he couldn’t come out and collect the rent. So Washington didn’t mind enforcing the tax.

After putting down Shay’s Whiskey Rebellion the United States had enough income to borrow on. The British were amused:

-Didn’t pay us the last time.

Backstabbing Jefferson, having escaped the French revolution, told the French to hold off until Washington was out of office. The delegation came back from France claiming Talleyrand wanted his beak wet. Two-term Washington started as France’s man. Since he couldn’t get the loan, he should grab his hat and not let the door hit him on the way out. Washington forestalls Jefferson by getting his stooge, John Adams, in as president.

Washington died struggling to maintain his plantation. Under Washington we had begun to support England’s antislavery efforts. In part to oppose Barbary pirates. In part because it made domestic slaves more valuable and gave American pirates new opportunities.

Adams, having to choose from the French or the British, goes to the Dutch. At that point the Dutch are a two hundred year old republic. The Americans were kiting, or debt consolidation. The Dutch were pirates. Send a boat out, if it comes back they’re rich, what happens in between who knows? Dutch share the most popular religious belief, Calvinism, that the universe has an ethical plan. Gangsters like that you got what was coming to you. One of the many splits in Dutch society was between the adherents of Britain and France. The supporters of France also favored America. This division helped Adams get the loan.

Once Adams had the loan he scuttles back to the British for a trade deal. The French are already furious that after they saved America and lost their monarchy, Washington went neutral on them.  This left the French talking to Jefferson. To ensure passage of their treaty, the British buy Adams’ midterm congressional elections. With Adams obviously in England’s pocket, the French attack American shipping. America then has to raise its own navy and army, so much for neutral.

The Dutch were widely ridiculed for their factious society. Perhaps it was this example or Adams’ sensitivity to criticism that leads to the Alien and Sedition acts. Adams still saw himself as part of the British Empire.

The paranoia of Adams was justified. Daniel Boone was outraged that his Spanish land titles were not honored; Spain and America were not at war. Billy Caldwell, a British- Potawatomi fur trader in the Chicago area wound up running a Potawatomi tribe in Iowa. Whenever someone proclaims their good qualities: honesty, loyalty, courage, thrift, sobriety, virtue, modesty, or patriotism, consider why the subject was broached. Adams had no right to patriotism.

Adams’ repression elected Jefferson.  The United States population was over 5 million with slaves. France had almost 30 million. The French:

-Freedom for us and nobody else,

See The Marseilles, were now ruled by Napoleon. Because of Dutch factions, France had conquered Holland. At this point France was allied with Spain. Since France owned Holland, Napoleon forgave France’s Dutch debt. How can you be unjust to Calvinists? In the Louisiana Purchase Napoleon cancelled eighteen million francs of French debt. Some of this debt may have been owned by the citizens or monarchy of the Kingdom of France. Some may have been owed the citizens or government of earlier French republics. Some debt may have belonged to the citizens or government of the Dutch Republic. None of these lenders would have minded if the USA had stiffed Napoleon. It is difficult to collect debts without the support of a government. Debt default is one of the reasons for revolution and conquest.

As to the land, Louisiana, whose title had passed back and forth between Spain and France, USA was here and France was there. Haiti had just kicked Napoleon’s butt. Napoleon was a general, not an admiral; he wasn’t coming back. There may have been the occasional loyal French subject, whether colonial or Native American, but the issue would be far more immediate than a distant treaty, certainly not worth the expenditure. Everyone remarks how advantageous the Louisiana Purchase was to America and how Napoleon got the best he could, given his situation. Why do the deal at all?

The only accomplishment was funding Napoleon’s assault on Europe. Why would Jefferson do that? He did it because he was Jefferson. It wasn’t just payback to Adams.  The Louisiana Purchase was yet another example of American military aid.

The British, infuriated by the USA turning Napoleon loose and our support of slavery interdict trade leading to the war of 1812. It was generally recognized that the import of slaves subsidized piracy. We no longer had British protection against Barbary pirates and paid the pirates tribute.

The USA anthem says we are free and brave and we will survive and get those slaves and indentured servants.

The overseas Dutch carried on their financial affairs throughout the world, including the United States. If their money was good enough, they’re good enough.

Historical Inevitability: I give you Washington, Franklin, Adams and that sanctimonious shit, Jefferson.

Taxes

Milton Friedman made his living arguing that the Federal Reserve caused the 1929 stock market crash and thus the Great Depression by jacking around discount rates.  Economic argument is difficult. We cannot even prove that the stock market crash caused the Great Depression. But his point that the Fed should be considerate, respectful and measured is well taken. As any driver can tell you, when you don’t know what you are doing, it is better to do it slowly.

Fiscal policy should be deliberate as well.  When there is uncertainty it is difficult to plan or invest. The new tax law dumps everything into the chipper. People keep talking about individual effect or ethic. The real problem is that we have no idea what the cumulative impact will be. That is bad. What will be the systemic impact on America? This law assumes instability. It was passed in the belief that many issues will be addressed in subsequent legislation. What a wonderful fetcher, how can Congress not shake that money tree? We have no idea as to impact or what the law will be a year from now. Previous tax law represented all the various interests that lead to it. Those interests remain. They will demand satisfaction.

There is a recent example. Ronald Reagan, a Hollywood actor, was incensed that he paid taxes at 90%. Obviously there were ways for him to reduce that burden. He invested in real estate and took advantage of depreciation and all the rest. What upset him was that his employers, the studio owners, had the capital gains deduction. When they bought and sold the studios to each other they then started from 50% times 90% or 45%. It wasn’t fair that he had to start higher because he did the work. When he was elected he got the maximum down to 28% from 70% and eliminated the capital gains deduction.

Since everyone started from 28% a lot less tax was collected. This combined with the savings and loan fiasco left George HW Bush with a hot steaming mess. Fortunately class tells and Bush, the statesman, lied and saved our country. He wasn’t reelected, but Clinton was smart enough to keep things as Bush left them. The Clinton recovery began under Bush. Bush really had a 12 year term. Of course once Bill Gates wanted to sell his stock, the capital gains deduction was restored in 1997. The new maximum tax rate is at 37% down from 39%.

I despise tax deductions. Just as we shouldn’t tell people how to invest, we shouldn’t tell them how to live either. The state real estate tax deduction is the worst. It is wrong to subsidize social segregation. But this reform has already led to a state tax windfall soon to be followed by a state tax drought.

It appears that Republicans want to end everything Obama, including the recovery. I hesitate to ascribe motive to anything so mindless, but everyone wants to sell out.  What opportunity is driving this smash and grab? It must be China.

The tax bill will fail in the courts. As venal as Republicans are they have left an out. Double taxation on earnings and income is forbidden. This is fundamental tax law and is used to justify foreign tax credits.  Including state income tax in the tax cap will be changed. It would be reasonable for the courts to simply specify that state income tax is a separate deduction and is not capped. Perhaps the adults will create the tax form that way. Then the states will move taxes from real estate and sales to income. The change in state policy could be beneficent, one might expect state legislatures to more fairly apportion services. More likely we will become southern, charter schemes and vouchers. The Supreme Court has two principle values: expediency and privilege. Faced with a difficult law that threatens privilege the court will remove the cap. Then they will throw out the whole law to give themselves cover. It will be a close decision but judges own houses.

This is a cruel charade to shake down investors who want to own Chinese assembly plants. Can Senators look investors in the eye and claim that they don’t understand double taxation of income?

If you wind up paying 37% in taxes, you should throw a party. You have more money than you know what to do with. Most people know what to do with their money. The current idea is that you should have about 120,000 in walking around money. If you need more than that you should check in and make use of the medical deduction. The rest of your money should be in a corporation, profit or nonprofit, stock or pass through. Just as every poor person needs a church every rich person should have a business. There’s a lot of ways these things are structured but the point of the tax law is to limit your spending money and keep you invested.

Rates

Any time someone gives you a rate for anything, it’s been jiggered.  The unemployment rate is a well-known example. In 2012 the reported unemployment rate was around 8%. If I take the total reported employment of around 134,000,000 then apply it to the total population between 20 and 64 of about 162,000,000 I get around 17%. That seems a little high for 2012 but it gives you an idea of the variance. At this point economists start throwing smoke.  Most economics seems to be disputes about rates.  Disability, yadda yadda, looking for work, employability, underemployment, I’ve known a lot of deranged people who have jobs.  A good rule of thumb seems to be double the reported rate. Google real unemployment and double the rate seems the general conclusion.

Given the tremendous amount of data available and studied we should have immediate, accurate and complete information segmented across any desired index of our unemployment.  Given that we don’t it is obvious that we don’t want this information. We have national job search sites, Monster, LinkedIn, Dice, which should be able to show employment rates and active job searchers by profession. Why aren't these numbers publicly available?

Earnings are another notorious quagmire. Security Analysis, the legendary book by Graham and Dodd, is essentially a diatribe on the difficulty of reading company reports. Investors want to see a smooth earnings curve, so management spends most of its time trying to fit its real revenue into that form.  Inevitably there is a disaster, the company takes a bath, reveals all its bad news and then goes back to building its earnings curve.  Knowing this, are you more likely to trust a company reporting gyrating earnings-or would you regard it as management not being smart enough to play the game?

Inflation is also difficult. Adam Smith proposed animal feed as the benchmark for determining the value of your paycheck. Nowadays this would correspond to gasoline. Recently, the price of gas dropped but the value of the dollar as measured against gold has not yet responded.  This is probably because we have hollowed out so much of our industry. Galbraith argued that inflation was the consequence of business requiring a rate of return for investment.  I think we all intuitively recognize that there is always a real, constant and underlying rate of inflation despite particular market events. Underneath all the various currency gyrations and trade imbalances currency value has an intrinsic depreciation.

What got me started on this article were college acceptance rates.  I was startled at how selective colleges had become. Then it was explained that students are sending out far more applications than they had in the past.  What the schools are not reporting is student acceptance rates, how many students turn down the school after they have been accepted.

Everyone recognizes a drop in crime statistics. Credit has been taken by the police. Contraception and abortion have been recognized.  Cell phones help with reporting and solving crimes. The prevalence of video cameras is significant. 1984 is real. Videophilia, the prevalence of video games, is linked with drops in pregnancy, recreational activity and crime. Improvements in medical care reduce the number of successful homicides. Some of the decrease is municipalities’ jiggering the reporting. These causes explain the drop in reported crime. But the nature of criminal activity has changed. Banks and businesses have supplanted organized crime.

In the past murder rates were in inverse ratio to construction. As Sam Destafano said:

-You will never catch me; you’ll never dig up the Dan Ryan.

I have noticed a number of articles mentioning bodies found in dumpsters.  At first this method of disposal seemed foolish to me. The bodies were being discovered.  Then it occurred to me that maybe a lot of other bodies were not being discovered.  The garbage disposal process is so automated. Now that it is easy to dispose of bodies, the true murder rate is hiding in missing persons.  How can anyone stay missing nowadays? It is more difficult to hide your identity than it is to dispose of a body.

Arendt and Community

After Marx, academics had a serious issue:  they had to build on his work without referencing it.  This isn’t all that different from the difficulty academic psychologists had with Freud.  Freud talked goofy and it sounded silly when you were writing grant proposals.  Cognitive Behavioral Therapy is the latest attempt at building a rational sounding justification for talking therapy. Sounds like a prissy version of Freud to me. 

With Marx the difficulty was much more immediate.  One citation and your funding disappeared.  Poor Keynes had to throw in Calculus and talk all the way around his fulcrum to say that if you wanted to keep the game going you had to grab money away from the winners and keep the losers in the game.

Sociology hung onto its journalist roots; that shred of honesty kept it halfway decent.  But then they threw in statistics.  The real ugliness was when they coopted Marx’s use of the word alienation.  Alienation meant losing you inheritance, your position in your family.  Marx with his German sense of humor used it to describe tradesmen working an assembly line and no longer owning their tools. 

Marx was trying to answer Adam Smith’s division of labor by giving examples of its destruction of people’s self-worth.  The only way out Marx could see was for people to take advantage of their forced collectivization to form unions. Communists would later take his description of farm people forced into factory work as a prescription for collectivization with disastrous results.

Sociologists grabbed the alienation word to describe people’s loneliness in society.  Loneliness is a real issue but to say you are alienated from society is nonsense.  You are your society.  If you are not yourself, then who are you? Once they had a specious issue the only thing left is a solution viola: community.  A meaningless duality, what could be more perfect for writing grant proposals.

When the baby boom sent a hydraulic stream of undergraduates hurtling into academia, those of a more idealistic bent had the idea that sociology had something to do with solving people’s problems with society.  Let the punishment fit the crime.  Forced to undergo and regurgitate meaningless prattle to then enter the ranks of the unemployed it is hardly surprising that so many terrorists have sociology degrees.

So it is discouraging that Arendt’s discussion of Revolution finishes with talking up the committees that form in the developmental process of government.  My own experience with boards and associations is bad.  It always ends with wondering why all these people hate me.  Successful committees are to purpose and transitory.  Standing committees are deadening.

I dusted off Revolution because of all these demands demanding that Occupy Whomever come up with demands.  Since any agenda becomes the basis for repression we are left with this Dadaist movement. It’s not enough to have a silent majority, now they have to be inarticulate as well.  Columnists keep trying to link Occupy Wall Street with the Tea Party.  The fundamental distinction is that the Tea Party hates poor people and OWS doesn’t want to become them.

Arendt argues that political process can’t solve economic inequality.  With Marat Sade thundering in the background I believe I understand her argument.  But until the messiah comes we have to scrape around and stall off the inevitable savagery predicted by Marx, sort of an American expression of Mao’s perpetual revolution.

Despite the insurance and drug companies, Americans have, as definitively as we ever have, made it clear that we want health care.  We can’t all live in hotel rooms surrounded by Mormons. We recognize that our individual health depends on the health of the population, and by the way, mental health is infectious.  Usually at this point the majority is respected.  Instead we are confronted by these statesmen who are determined to keep the poor out of the middle class. The Tea Party archetype is a franchise owner, SBA loan in hand.

What everyone seems to agree on is that our current process sells too cheap. We’ve played this game for over two hundred years and either our standards have raised or the bosses have wired it too tight. For instance everyone knows drugs should be legal; what chance is there of that? Everyone understands that the process is failing, yet no one states the obvious conclusion:  it’s time for a rewrite. The Constitution was predicated on protecting slavery.  It is unfair to us to maintain those advantages.

The greatest criticism of representational government is the toll it exacts on candidates.  What person wants to beg hundreds, thousands, even millions of people for their job? The whole process was conceived and designed to keep politicians snugly and securely in the hip pockets of the owners and manufacturers. Sociologists sometimes study the dynamics of power, the personalities and character of leaders.  They usually are trying to prove that individuals can surmount social process. What they don’t consider is that most leaders belong to someone else and they couldn’t accomplish anything otherwise.

There are two other possibilities: plebiscite and lottery.  As Ross Perot said, plebiscite has recently once again become practicable.   Just as we maintain online bank accounts we could maintain an online voting account.  The proposal of new initiatives could be made sufficiently onerous through petition and consideration. The lovely thing about plebiscite is how auditable it is.  Perhaps we could have a third house of congress.  It would represent the people’s will directly. 

Lottery has the advantage of making corruption more difficult.  You have to bribe the official after they have been selected.  Executive lottery is perhaps the best way to organize an underground movement, or one subject to oppression, making it more difficult to take over.

I think chance should officially be reintroduced into the court system. Litigious parties, or even criminals, should have the option of flipping a coin or rolling dice.

America was founded on the idea of checks and balances. I don’t think we took that far enough.  In particular our military adventures are out of hand.  I propose that we assign our military functions to that third house of congress whether plebiscite or not.  If it is elected I don’t know what the divisions should be, perhaps something different from geographical.  We could give this house its own funding; control of natural resources should be enough money. The idea is that this house would manage our natural resources and foreign affairs.  Maybe this could be the new function of the House of Representatives and the plebiscite would cover the domestic issues, with the Senate over both.

Claiming to be an honest politician reminds me of claiming virginity in a bar. I’ve always been upset with the small sums that congressmen receive for influence.  Committeemen in Chicago get more money for zoning variances than Congressmen get for billion dollar spending bills.  Separating out the foreign policy and natural resource issues would remove the hypocrisy and put Congress on a realistic footing.  Having the entire nation vote on domestic spending authorizations would be a useful restraint.       

There are other possibilities: the Senate could be chosen by lottery for fixed terms of longer duration, similar to the Romans.  This would isolate political parties to the House and Presidency.

 I haven’t figured all this out. It’s going to take those wretched committees, hopefully for a limited period of time, to do that.  It will not be perfection, but as a measure, it should be a lot more difficult to conduct imperialist adventures, a lot easier to make drugs legal, TARP would have failed a referendum, the jobs bill would have passed, and Supreme Court judges would be a lot more discrete about being on the take.

In any case, the bar has been raised.  When my congressman returns to the district and says they don’t have the votes, I’m going to want to know why they didn’t shut down the government.  I take my issues at least as seriously as anyone else takes theirs.