Archive for March, 2009

Economy

"Tax on ‘AIG Bonuses’ Hurts More Than Just Executives at AIG"
Originally published:  21 March 2009
Submitted by:  U.S. Common Sense
Summary:  Examining the cause and effect of the AIG bonus scandal and the problems related to the Tax bill passed by the House.

"Of Cows and Democrats/AIG debacle II"
Originally published:  22 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking at the rhetoric from the AIG bonus fiasco and the reactions from some of the elected officials.

"Letters to Len: The Middle Class Should Prepare for an Increase Tax Burden"
Originally published:  24 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking at the burden carried by the top 1% and 2% of wage earners, and how that might change with increased government programs.

"Everyone Must Give a Little…"
Originally published:  27 March 2009
Submitted by:  U.S. Common Sense
Summary:  Questioning who are those that are receiving government aid, and what they are doing in return.

"GOP Budget Baloney"
Originally published:  27 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking into the content of the counter budget proposal brought forth by the GOP this week.

"The G-Man Plan"
Originally published:  23 March 2009
Submitted by:  U.S. Common Sense
Summary:  Questioning the relationship between credit defaults and mark-to-market rules.

"Anyone Got A Dollar?"
Originally published:  26 March 2009
Submitted by:  U.S. Common Sense
Summary:  Reviewing the international call for a new global currency.

"Just Why is Obama So Intent on Supporting a Failure Like Geithner?"
Originally published:  24 March 2009
Submitted by:  U.S. Common Sense
Summary:  Questioning the ability of Tim Geithner and looking at the relationship between him and Obama.

 

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Miscellaneous

"ReLOVEution"
Originally published:  24 March 2009
Submitted by:  U.S. Common Sense
Summary:  Searching for the next Great Awakening in the hopes to bring about change in the US and bring it back to its core beliefs.

"Please, Don’t Spoil Our Views"
Originally published:  25 March 2009
Submitted by:  U.S. Common Sense
Summary:  Highlighting the contradictory statements and ideologies of those who wish to expand the use of green energy in our country.

"DREAM Act Coming Up Again"
Originally published:  24 March 2009
Submitted by:  U.S. Common Sense
Summary:  Reviewing the history and arguments for and against the Dream Act.

"Admittedly, I’ve Lost My Sense of America"
Originally published:  24 March 2009
Submitted by:  U.S. Common Sense
Summary:  Questioning ones’ faith in the ideology of America, and wondering what the future might hold.

"Where is the Democrats’ Outrage Over Obama’s Special Olympics Comments?"
Originally published:  22 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking back at the response to Obama’s comments during the discussion with Jay Leno.

Unions

"If You Don’t Research the Issue, You Are More Likely to Support New Union Law"
Originally published:  24 March 2009
Submitted by:  U.S. Common Sense
Summary:  Noting how informed individuals view the Employee Free Choice Act compared to those that are not familiar with it.

"FedEx Asserts Their Right to Exist"
Originally published:  25 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking into the fight between union laws and the free-market principles that allow companies to operate.

Comments

While reading today’s Washington Post, I came across the following opinion response entitled “Who Will Protect Unionizing Workers?” I usually do not pull apart someone’s opinion piece, but I found some issues with this article that I wanted to address.

A March 15 news story reported that the debate over the proposed Employee Free Choice Act has evolved from a “narrow clash between unions and employers” into a debate over “fundamental questions of American capitalism.”

While this is true, the real issue here is a question of basic fairness that can never be reduced to one bargainer’s economic advantage. If the Employee Free Choice Act does not survive the Senate minority’s threatened filibuster, the public will demand to know what the minority proposes to substitute in place of this essential legislation. Instead of heated rhetoric and partisan bickering, what real solutions will be proposed to address the long history of employer intimidation against workers who seek to unionize their workplaces?

Point 1: The statement, “the real issue here is a question of basic fairness that can never be reduced to one bargainer’s economic advantage,” is misleading. While companies currently do have some recourse to a call for unionization, the Employee Free Choice Act (EFCA) will flip the power to the other party. So, in essence, the “fairness” will still be “reduced to one bargainer’s economic advantage.” Doesn’t that defeat the purpose?

Point 2: The statement, “the public will demand to know what the minority proposes to substitute in place of this essential legislation,” is also misleading. For starters, the minority doesn’t have to submit a substitute if they have no issues with the current rules. That is like someone proposing a rule that all Congressmen must wear pink ties while in session. If the minority party filibusters the legislation because they think it is unnecessary, why would they have to propose a new piece of legislation?

Many of our religious traditions, from the Jewish Workmen’s Circle and the Social Gospel of mainline Protestantism to the social justice encyclicals of the popes, have taught that denying workers the right to organize is an attack on human dignity.

When opponents of the legislation claim that technology has created the great prosperity of this nation, it makes us wonder whether the bosses forgot that workers without a decent wage cannot be consumers.

We’re in this together. The blindness of a few could beggar us all.

Point 3: I might not be the most well versed person on the Bible (as both Nicholas Cafardi and Jerome Maryon are), but I do not recall reading anywhere that unionization was essential to human dignity. Plus, with all the debate over the past eight years regarding “too much” religion in politics, I do not see how this helps the argument in favor of the EFCA.

Point 4: What determines a decent wage? If the technological advancements, such as computerizes plasma cutters, replaces a highly skilled position of a welder with a medium-skilled position of a computer operator, the company can pay the new employee less. This decrease in salary offsets the increased overhead cost for the new equipment; however, the company sees a net gain for increased production, efficiency, and quality.

While it might be disappointing for the company no longer needing the higher-skilled, higher-paid employee, it isn’t morally wrong to lay them off. In fact, we have many examples in our history where positions and skills become obsolete, new jobs and skills are created due to technological advancements.

For example, how many offices still use typewriters? Not many, since desktop computers have replaced the old technology. With the transition, offices could reduce the overhead labor costs since skilled computer users could produce more work in the same amount of time. Many secretaries and production/graphics employees went to school to learn news skills to use the computer and the software in order to retain their jobs and become more valuable. In essence, these individuals could now demand a higher wage over the lesser-skilled employees who did not evolve with the current technology.

Doing a Google search on these two individuals (assuming I found the right profiles), both authors are experienced men in religion and law, and so I welcome to be corrected on point 3. I do think, however, they could have drafted a better defense for EFCA than implying that the opponents are required to offer an alternative piece of legislation and that there is a moral reason for unionization.

(NOTE: I have yet to find a link for this article, so I’ve posted the whole text in the text above. Reference page A12 of the March 24, 2009 edition of the Washington Post if you wish to see the original article.)

Comments

AIG Bonuses and Bailout

"ALG Demands President Obama and Members of Congress Return AIG Campaign Kickbacks"
Originally published:  19 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking at the AIG bonus fiasco from a different angle, Americans for Limited Government calls for Congress to return their own "bonuses."

"AIG’s Most Famous Bonus Receiver"
Originally published:  19 March 2009
Submitted by:  U.S. Common Sense
Summary:  Reviewing the campaign contributions made by AIG’s personnel and their recipients.

"A Missing Audacity Of Competence In Government Today"
Originally published:  18 March 2009
Submitted by:  U.S. Common Sense
Summary:  Examining the public response to the AIG bonus debate, and what Congress should really be fearing at the moment.

"Tilting at Windmills"
Originally published:  18 March 2009
Submitted by:  U.S. Common Sense
Summary:  Commenting on the outrage over the AIG bonuses, and how that outrage is misplaced.

"Gordon Gekko Would Be Proud: It’s Time to Let AIG Fail"
Originally published:  20 March 2009
Submitted by:  U.S. Common Sense
Summary:  Taking Wall Streets view on the AIG bonuses and the economy in general, and why things need to change.

"Capitalism Delayed is Capitalism Denied"
Originally published:  17 March 2009
Submitted by:  U.S. Common Sense
Summary:  Questioning the history and rational behind federal bailouts and just who these companies become responsible to after they receive taxpayer funds.

"I Guess Accountability Is Un-American Also"
Originally published:  20 March 2009
Submitted by:  U.S. Common Sense
Summary:  Comparing Nancy Pelosi’s recent comments on the AIG bonus fiasco with her involvement on the Stimulus bill.

"A Tepid but Realistic Defense of the Obama Administration in the AIG Matter"
Originally published:  19 March 2009
Submitted by:  U.S. Common Sense
Summary:  Examining how the lack of a fully staffed Administration and their "greeness" plays a role in their response to the AIG bonus issue.

"AIG Bonuses"
Originally published:  15 March 2009
Submitted by:  U.S. Common Sense
Summary:  Rethinking how the AIG bonuses should have been provided, and what benchmarks must be met in order to receive them.

"Employee Retention Bonus Program Paid With Your Taxes! Thanks AIG."
Originally published:  16 March 2009
Submitted by:  U.S. Common Sense
Summary:  Commenting on the practice of providing AIG Executives with retention bonuses and the security of your investments with the company.

"Senator Chris Dodd: Can You Spell Mortgage Insurance?"
Originally published:  20 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking at the involvement Chris Dodd has had in the current AIG fiasco, and what impact it is having on his political capital.

"Solving The U.S. Financial Crisis, One Financial Bailout At A Time"
Originally published:  16 March 2009
Submitted by:  U.S. Common Sense
Summary:  Criticising the AIG Bailout and bonuses, and questioning who is to blame for the financial crisis.

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Miscellaneous

"Piyush "Bobby" Jindal in 2012"
Originally published:  15 March 2009
Submitted by:  U.S. Common Sense
Summary:  Examining the potential run by Jindal for office in 2012, and how Rush Limbaugh would receive him if Jindal were a Democrat.

"Is the Europeanizing of America a Bad Thing? (Part 1)"
Originally published:  15 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking into the global and economic influence the United States has, and what "Europeanizing" actually means.

"Velocity: The ‘Speed’ of Money"
Originally published:  19 March 2009
Submitted by:  U.S. Common Sense
Summary:  Explaining how money passes through the economy, and what impact the current financial crisis has on this trend.

"A pleasant surprise"
Originally published:  20 March 2009
Submitted by:  U.S. Common Sense
Summary:  Commenting on the latest web video by President Obama, and how it relates to Iran.

"Energy and Climate Change Primer for the 111th Congress"
Originally published:  18 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking forward to see what green energy agenda’s are on the table in the House and Senate, and who the players are behind them.

"A Look at the Cause of the Credit Crisis"
Originally published:  17 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking at the role the credit system plays in the United States, and how that role needs to be changed.

"The Stranahan Syndrome"
Originally published:  19 March 2009
Submitted by:  U.S. Common Sense
Summary:  Examining the rise of Ayn Rand followers in the current economic crisis, and how some on the left are trying to squelch it.

"So now we’re all subversives?"
Originally published:  16 March 2009
Submitted by:  U.S. Common Sense
Summary:  Are you a militant?  The Missouri Information Analysis Center might think so.

"Lessons from Vietnam"
Originally published:  14 March 2009
Submitted by:  U.S. Common Sense
Summary:  Looking inward towards the current and future state of the US politics by those that migrated to the United States.

"Terence Corcoran: Is this the end of America?"
Originally published:  19 March 2009
Submitted by:  The Right Wing
Summary:  Looking at the current financial and political chaos in the US and looking at historical trends to find optimism for our future.

Comments

Today, Congress wasted precocious time drafting and voting on a piece of legislation to place a 90% tax on to bonuses received by individuals who work for TARP funded companies. After it was discovered that Chris Dodd and the Obama Administration put into the stimulus package a clause to allow bonuses to be given to companies that received TARP funding, Congress put on a show of being upset and promised to get the money back. Well, I have to say that this is all unnecessary.

Before I go to far, let me just say up front that these individuals shouldn’t have received large bonuses if the companies were in dire economic condition. And if bonuses were needed to reward individuals, it should have been given in the form of company stock. That way, they would have a vested interest in improving the company’s financial situation.

Unfortunately, AIG used cash to provide bonuses last year, to the sum of $165 Million. These bonuses were written into compensation contracts, and the rushed stimulus package protected all contracts prior to February 11th. So where does Congress get off saying, “Oops, my bad. Gimme back that money,” when they said it was ok just a month ago?

Rushed legislation caused this mini fiasco, and now we have rushed legislation to “fix” it. However, is this 90% tax actually constitutional? Article I, Section 9 of the Constitution states:

No Bill of Attainder or ex post facto Law shall be passed.

A Bill of Attainder is a process where the Legislature supercedes the Judicial by singling out one or a small group of people for punishment, such as high taxation. Justice William H. Rehnquist referred to it this way:

“These clauses of the Constitution are not of the broad, general nature of the Due Process Clause, but refer to rather precise legal terms which had a meaning under English law at the time the Constitution was adopted. A bill of attainder was a legislative act that singled out one or more persons and imposed punishment on them, without benefit of trial. Such actions were regarded as odious by the framers of the Constitution because it was the traditional role of a court, judging an individual case, to impose punishment.”

So let’s recap for a second. We have spent more time having hearings on the AIG bonuses and drafting legislation for new taxes than we spent reading and debating the original stimulus bill. You would think that if this was the other way around, there could have been debate on Dodd’s compensation amendment before voting. But since that didn’t happen, the House has passed a rushed piece of legislation that may or may not be constitutional. This can easily lead to those targeted under the Bill of Attainder to challenge the law in court, costing more than the $165 Million that is being debated.

Why are we wasting our time on this? Congress, just accept that you screwed up. You lived up to the old saying, “Haste makes waste.” These bonuses were provided legally under the legislation you voted for, so you have no grounds to go back and demand the money to be returned. And now you are setting the foundation for more time and money to be wasted over a legal battle. Don’t you ever learn?

Related articles:
Tech Law Journal – “Bill of Attainder”
Prison Planet – “Paul: Bill to tax bonuses an ‘outrage’ and unconstitutional”
TaxProf Blog – “Larry Tribe: 90% AIG Tax is Constitutional”
Real Clear Politics – “Dodd’s Deep Doo-Doo”
Just Politics – “Bread & Circuses (& Bonuses)”

Comments

If you’ve noticed on the right-hand side of the page, there is a new button labeled “The Exercise Challenge.”  I am starting a 6-week challenge to lose five pounds doing basic exercises without the use of gym equipment or any gizmos they sell on TV.  Five pounds might not sound like a lot, but it is a reasonable goal.

I was going to the gym regularly in 2007 and 2008 until I ended up in the hospital.  Unfortunately, I never returned to the gym after recovering.  This has led to me to regain all the weight I had lost since 2007 -plus five additional pounds – hence my goal.

The site will detail the exercises I will be performing, statistics on weight and measurements during the challenge, and any observations during the six weeks that I think are interesting.  If you are interested in joining me with the challenge, you are more than welcomed to contribute to the site.  The challenge will start on March 29th.

Comments