MA Taxpayers Are Getting What They Asked For

When times are tough, you look for expenses in your household budget that maybe you can do without: “this is nice to have, but we don’t need it right now”; or, “we need this, but maybe we can be paying less for it.” Shouldn’t our State government be doing the same thing??

Instead, what does Beacon Hill do in difficult economic times? They go back, time and time and time again, to their own bottomless ATM (the Acquiescent Taxpayers of Massachusetts). They’re like some kind of rabid monster – “must get more revenue, need more revenue, can’t lose any revenue!!” As if raising revenue is the only option for dealing with budget shortfalls.

This morning we learn that *at the same time Beacon Hill is already getting $11 Billion from the Porkosaurus Rex stimulus bill* Governor Patrick is going to jack-up the gas tax by 19 cents per gallon (nearly doubling the state’s gas tax). God forbid the Governor actually trim some of the grotesque fat that oozes from every door jamb in the State House. Why don’t we just hand them our entire paycheck, and then they can give us a weekly allowance? Oh, and now we know why the Governor proposed a 50 cent gas tax last week – it’s the oldest political trick in the book: threaten a 50 cent tax, and then when everyone gets outraged, drop it to 19 cents…suddenly the ignorant masses think they’re getting a bargain. All this from a Governor who ran on promises of property tax relief – what an absolute joke!

And you know the saddest part? We aren’t going to do anything about it. The majority of voters in this state are spineless lemmings. Every November they go into the voting booth and check D-D-D-D-D-D, all the way down the page. Here’s the bottom line: if you voted for this Governor, if you voted ‘No’ on Question 1, if you continue to vote for all these incumbent Democrats, then you have no leg to stand on and ought to keep your mouth shut about this gas tax. Your votes already sent a clear message to Beacon Hill: “Keep doing what you’re doing, it’s fine with me.”

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Political Stimulus, Economic Albatross

The stimulus, if it is going to actually do anything productive, needs to be temporary, targeted, and timely. This bill is none of those things. Instead, it’s a disappointing, unfortunate product of fiercely partisan politics and the epitome of business-as-usual. And I’m sorry – honestly, because I wish it wasn’t true – but you can’t even make the argument that this is “change.”  It’s a massive permanent increase in government discretionary spending (pork) mascarading as economic stimulus. Ninety percent of the alleged stimulus is for special-interests and social programs that, however well intended, will not and cannot create economic growth. This thing is an albatross.

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Are video games recession proof?

You wouldn’t think so, but despite the fact that we’re in the midst of a big economic fart, people are still spending money on lots of things including games. Forbes.com recently compiled a list of the ten things we’re still buying despite our skinny wallets.

It is no surprise to me that video games are on the list. Video games actually saw a 14% increase in sales in 2008 (according to the Electronic Entertainment Design and Research Group). Games are a way for people to escape and have fun, so when you’ve just lost your job or your house, what better way to forget about those things for an hour than playing a game.

So, how else are we spending our meager moolah? Personal care (shaving cream, hairspray, etc.), other technology (smart phones and netbooks), gym memberships, movie tickets, restaurants, car maintenance, toy building sets (huh?) and dress casual shoes (shoes that can be worn at work and on the weekends).

P.S. – I’ve been involved with the New England Games and Interactive Entertainment Special Interest Group (MIT Enterprise Forum) since the fall and our next event is on March 3rd. The panel will actually discuss how the video game industry is being impacted by the economy. I’m looking forward to it.

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Choose Your Own Adventure: Economic Stimulus Edition

I used to love reading those Choose Your Own Adventure books, and was inspired by two very different stimulus ideas I saw today…here it goes:

Economic drought has stifled the flow of goods and services all across the land. Something must be done to revive it. You – the wise journeyman – have set out find the way to Prosperity, the great land of economic goodness. You’ve journeyed for many moons and many miles, and now, you’ve reached a treacherous, tantalizing fork in the road.

A sign at the fork seems to offer a clue: “Both roads add $800 billion to the deficit, but only one leads to Prosperity. If you want to find the way, remember that for every promise, there is a price to pay.”

Choose your adventure…if you dare…

The Imperial Road

No Promises

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There’s Always Next Year

Economies and markets around the world really sucked this year, and a lot of hard-working people got screwed in the process. There was no place to run, no place to hide…and now – maybe, hopefully - no where to go except up (click the thumbnail to enlarge).

 I don’t like dwelling on the negative, and there’s little use in it anyway. President Truman said, “an optimist is one who makes opportunities of his difficulties.” The same way a forest fire gives way to and fertilizes new growth, this year’s swath of economic destruction will fertilize new opportunities, and in some cases, for entirely new groups of people. Case in point, right now mortgage rates are at all-time lows. First-time buyers…all aboard! Happy New Year, everyone, and here’s to a healthy and happy 2009!

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A Silver Lining

A silver lining on the otherwise gloomy economic cloud – As of December 22, gas prices in Massachusetts (adjusted for inflation) are at their lowest level since April 2002.

Source: Energy Information Administration, weekly retail gasoline prices. Inflation adjustment based on Northeast regional Consumer Price Index time series from BLS.

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I’m With Stupid →

Test your American civics knowledge. The test contains 33 questions about America’s founding principles, political history, international relations, and market economy - the basics about the systems all Americans participate in every day.

For the last three years, the ISI (Intercollegiate Studies Institute) has conducted their American Civic Literacy Program study to see whether people have a grasp of basic knowledge required to be an informed citizen (the 2008 study is finished, you can take the quiz for fun by clicking the link above).

For three straight years the results have shown that Americans are alarmingly uninformed about our Constitution, the basic functions of our government, the key texts of our national history, and economic principles. Seventy-one percent of Americans fail this test (score 59% or less), which is really, really sad. Fewer than half of all Americans can name all three branches of government. The study has also consistently shown that college educated participants and elected officials fail the majority of the time.

Most Americans would probably agree that it’s pretty damn important for high schools and colleges to be teaching our future leaders about America’s history, key documents and institutions, but evidently this isn’t happening in an effective way. This is a sad commentary on our education system, including colleges and universities.

The findings and survey methods are described on the website.

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Bailout Nation – They break it, we buy it

It’s like their pouring water into a bucket with a hole in it, and then shoving the bucket up the ass of the taxpayer to hide the leak.

Sorry for the crude analogy but, man, between yesterday’s ramblings by Barney Frank about a homeowner bailout, and today’s revelation about Cerebus (the true beneficiaries in the Chrysler bailout), this is getting ridiculous. There is going to be a theme here: these costly bailouts only delay the inevitable.

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Print print, dig dig

Is it time for the government to stop printing money to throw in the Money Hole? You decide.

Ha Ha! Ha. Huh. Hmm. I’d be laughing harder if this wasn’t effectively true.

Oh, and to go along with this tongue-in-cheek video on bailouts, how about a tongue-in-cheek sentence of the day on the same subject: “The seepage of government into everywhere is, we are assured, to be temporary and nonpolitical.”  Well, now wouldn’t that be somethin’?

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An American Businessman’s Letter to Obama

Here are excerpts from a real American businessman’s letter to Obama. He is Corey Miller, a 54 year old high school graduate who started a water well drilling company when he was 29. There are millions of other entrepreneurs out there who can identify with Corey; two of them are in my family.

Entrepreneurship is the heartbeat of our economy. Liberal, conservative, or whatever - Obama’s policies amount to just plain bad economics.

You see, Mr. Obama, I’m the guy you intend to raise taxes on. I’m the guy who has spent 25 years toiling and sweating, fretting and fighting, stressing and risking, to build a business and get ahead. I’m the guy who has been on the very edge of bankruptcy more than a dozen times over the last 25 years, and all the while creating more and more jobs for East Texans who didn’t want to take a risk, and would not demand from themselves what I have demanded from myself. I’m the guy you characterize as “the Americans who can afford it the most” that you believe should be taxed more to provide income redistribution “to spread the wealth” to those who have never toiled, sweated, fretted, fought, stressed, or risked anything.

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‘Cause if ever there was a reason to drink

The Club for Growth notes that over the last six months, Budweiser’s stock is up nearly 30% while the S&P 500 has dropped by about 30%. Hmmm…maybe there is a way out of this mess (click to see the way out): 

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A Different Kind of Political Spectrum

Here’s how it works: I’ve plotted where each candidate falls along a spectrum of positions/abilities for 5 big-picture concepts that are important in this election. The descriptions for each concept basically represent opposite ends of each spectrum, and there is a gradient in between. They’re positioned along each spectrum based on their stated positions, voting records, and my opinion.

For example, at one end of the socio-economic spectrum are people who support socializing services/industries and distributing wealth/opportunity through government; at the other end are those who would leave the provision of these things entirely to the forces of free market capitalism and open competition (so, someone like Karl Marx would be on the very tip of the left end, whereas someone like Milton Friedman would be on the right end).

Or, take foreign policy - On one end you have those whose acumen for foreign policy essentially amounts to having twice breakfasted at the International House of Pancakes (i.e. totally inept); on the other end are those whose acumen merits the moniker of ‘commander in chief’. You get the idea.

I thought this would be a fun and interesting way to visually characterize their general disposition on key issues.

Personally, the right side of each spectrum is vastly preferable to the left side…so although neither candidate is ideal (gee, what a surprise), this does point to McCain as the preferable one by far. Obviously decide for yourself: on which side of each spectrum do you think our next president ought to reside?

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And then there’s US…

Post 9/11, our country has an even more unique and critical role in the world. I really like the way Mitt Romney put it:

“What we have today in the world is four major strategies at play. One, they’re the nations with the energy, like Russia. They’re trying to use energy as a way to take over the world.

Then there’s China, which is using communism, plus sort of a Wild West form of a free enterprise. They’re going to give nuclear weapons — or nuclear technology to the Iranians, they’re going to buy oil from the Sudanese. You’ve got China.

Then you’ve got al Qaeda, which wants to bring everybody down.

And then there’s us, the only major power in the world that says we believe in free enterprise and freedom for the individual.

And this great battle is going on right now, and it’s essential for us to strengthen other friends like ourselves, and to confront one by one these other strategies and help turn them towards modernity so that the world our kids inherit does not have to know war.” 

 

Source: Debate at the Regan Library, January 30, 2008

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“Red Haze” Clouds the Reality of Pollution in China

Two kinds of haze afflict, with appalling consequences, the people of China:

1) The unmitigated haze of pollution spewed daily by power plants, factories, and automobiles that clouds the atmosphere and is estimated to kill at least 10,000 Chinese per year, and

2) The oppressive “red haze” of communism spewed daily by a government that clouds reality in the eyes of Chinese citizens and the rest of the world by shaping the flow of information and falsifying everything from government statistics to Olympic fireworks displays.

During these Olympics China is using the latter to hide the former.

The satellite image below, taken in June, shows a suffocating haze of pollution shrouding Beijing and the entire area to the south in a uniform shade of brownish gray (skies appear relatively clear to the north and regular clouds appear bright white). This is a typical day in and around Beijing, where residents are often warned to spend as little time as possible outdoors because the atmosphere is a veritable pea soup of toxic gases.

Pollution Haze Over Beijing, June 2008

We already know that China is very concerned about creating a perfect image – or, as it were, a mirage – during these Olympics (e.g., digitally enhanced fireworks, lip syncing singers, and “official” crowds to fill the stands). So it isn’t surprising that as China prepared to host the Olympics, they put “special pollution controls” into effect: Except for taxis and Olympic vehicles, automobiles were banned on alternate days, depending on whether their license plates ended in odd or even numbers. Most construction was banned in Beijing, and factories were shut down in Beijing and the neighboring cities of Tianjin and Tangshan.

These restrictions are expected to last for two months – just long enough to fool the world during the Olympics – and are reducing pollution. Here is an image of Beijing taken on July 21, after the restrictions were put in place. The haze drifting south from Beijing is relatively slight compared to June.

Pollution Haze Over Beijing, July 2008 (click to enlarge)

Bottom Line: China has temporarily reduced the haze of pollution, and in the process, demonstrated to the world that the “red haze” of communism is as thick as ever. I can’t decide which is worse, the fact the government can shut down whole industries and dictate when people can drive, or the fact that pollution will return to deadly levels just as soon as the Olympics are over?

Images from NASA Earth Observatory

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In China, I Could Be Jailed for Posting This

And you could be jailed for reading it…and we’d all be sharing a cell with George Will and the artists who drew these cartoons.

For only the third time in 72 years (Berlin 1936, Moscow 1980), the games are being hosted by a tyrannical regime, the mind of which was displayed in the opening ceremony featuring thousands of drummers, each face contorted with the same grotesquely frozen grin. It was a tableau of the miniaturization of the individual and the subordination of individuality to the collective. Not since the Nazi’s 1934 Nuremberg rally, which Leni Riefenstahl turned into the film “Triumph of the Will,” has tyranny been so brazenly tarted up as art.” - George Will, 8/12/08

P.S. Did you hear about the little girl, Lin Miaoke, who won the world’s heart when she sang “Ode to the Motherland” during the opening ceremony? Well, it was a fraud. Lin was lip-syncing the song because China’s elite Politburo decided that the girl who was actually singing lacked sufficient beauty to be on stage. Instead, they hid the real singer backstage and put a “flawless” prop on stage to lip sync. The Politburo said it was done “for the national interest.” Never mind the interest of the poor little girl who sings beautifully but is too ugly in her country’s eyes to be seen in public. Disgraceful. 

Cartoon Source: Townhall

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Finally a Turning Point for Oil and the Dollar?

July 14^th – 15^th marked the beginning of a sudden and dramatic reversal of the multi-year upward trend in crude oil prices and the multi-year downward trend in the value of the U.S. dollar. This sea-change points to, potentially, a significantly improved outlook for growth, inflation, and energy costs – but, is this really the long awaited turning point or just another false-top in oil and false-bottom for the dollar?

The value of the U.S. dollar compared to other currencies has been on the decline since 2002, losing about 38% of its value over that period – it bottomed against the Euro on July 14 – 15. The price of crude oil has increased by about 580% since 2002, and on July 14 – 15 was only about 1.5% below its all time high. The result of these steady body blows to our economy, over time, has been increasing inflation and a slow strangulation of economic growth that has brought us to the brink of recession (the mortgage situation hasn’t helped).

But three weeks ago both trends dramatically changed coarse, simultaneously. The figure below shows the price of crude oil on the left axis (data here) and the U.S. dollar index on the right axis (data here) since early June. Click image to enlarge.

Of course, these changes are not coincidental – oil and the dollar are very much linked, primarily because oil is priced in U.S. dollars in markets all around the world (all else equal, if the dollar falls the price of oil rises and vice versa). So, what is driving this? Is the dollar rising because oil is now falling, or is oil falling because the dollar is now rising? A little bit of both?

Its both, but I suspect oil is the key driver here. There are mountains of evidence that demand for oil is easing in response the run up in prices (for example, here), and more generally, economies around the world are slowing (albeit temporarily). At the same time, there are expectations of increased future supply from a wave of new drilling/exploration around the world and talk of offshore drilling in the U.S. (gee, what a novel concept).

On the other hand, there are other factors that could be helping to raise the dollar. The economic slow down in the U.S. has reduced inflation expectations here, which helps the dollar (still high inflation, but not as high). And there is the expectation that the European Central Bank will start cutting their interest rates, which will lower the value of the Euro. But then, even these factors circle back around to oil.

Bottom Line: It is a combination of all these factors – or at least, people’s expectations about them – that has seemingly reversed the course of oil and the dollar. Oil is still quite high and the dollar is still low, but we are going in the right direction now and this is a very good thing. But no one can predict where things will go from here – hopefully this is the real deal.

Addendum: This information also reminds us of the obvious: right now oil makes the world go around. And…More than 80% of the oil left in the world is controlled by Saudi Arabia, Iran, Iraq, Qatar, United Arab Emirates, Kuwait, Venezuela, Nigeria, and Libya. We need more domestic sources of energy: oil, natural gas, (clean) coal, nuclear, hydro, hydrogen, solar, wind, geothermal – All of ‘em!

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Wicked Local Real Estate Info

Newton, MA - According to a report released by the Warren Group, an organization that tracks real estate trends, single-family home sales in Massachusetts in the first half of the year “plummeted” 19.1 percent, the lowest level the state has experienced in 15 years. The report also stated that the median price for single-family homes fell 9.2 percent, from $347,000 to $315,000. Breaking it down further, Middlesex County, which Newton is a part of, has experienced a 19.7 percent drop in sales and a 6.8 percent drop in median home prices.

I dug up some more wicked local real estate info for Middlesex County (might be interesting if you are thinking of wading into the market):

This figure shows the quarterly home price appreciation index for the Newton-Cambridge-Framingham metro area from 1980 through the first quarter of 2008. For each quarter, it shows the percentage change in home prices over the previous four quarters (for example, the very last data point is the percentage change in prices from Q12007 to Q12008). It shows that home prices in this area have been declining since early 2006, but at least the rate of decline is not accelerating (e.g., not getting steeper).

Below is a Trulia “heat map” showing average listing prices for each town in Middlesex County as of July 30. Newton is that fragmented-looking town just to the left of Brookline, and shows average listing prices of 625k and up! Given the typical shape of home price distributions, the average listings are skewed upwards by the handful of highest priced homes. Medianprice ranges would be lower across the board and much, much more indicative of the prices a “typical” home buyer would be dealing with (but current data on median prices isn’t available in the heat maps, so we get average). Anyway, the relationships across towns will still hold whether you look at averages or medians…for example, average/median prices in Northeast Middlesex tend to be lower than average/median prices in Central Middlesex.

Click the thumbnails to see heat maps for Worcester, Essex, and Suffolk county.

         

For more Trulia interactive maps by state or city, by average list price, by median sales price, go here.

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Still No Recession – Rocky Wins This Round

Analogy- Rocky Balboa:Ivan Drago :: U.S. Economy:Subprime & Oil Prices

U.S. Economy vs. Subprime & Oil

Explanation: The U.S. economy faces headwinds but is still not in recession. According to the Commerce Department’s estimate released this morning, 2nd quarter GDP grew at an annual rate of 1.9% (first quarter GDP was revised 0.9%). The unemployment rate is still at a historically healthy 5.5%. Industrial production also looks good.

If I was going to tell the story of this economy over the last year or so, I’d liken it to Rocky’s epic bout against Ivan Drago in Rocky IV. In this analogy, Rocky is the U.S. economy and Drago plays the part of subprime mortgages and oil prices.

Just before the fight begins, Rocky and Drago meet at center ring, and Drago says with that intimidating glare, “I Must Break You.” As the fight ensues, Rocky is pulverized in the initial rounds. And for several months through last winter and into the spring, it looked like subprime & oil would indeed break the U.S. economy. Since then, and just like Rocky IV, the fight has degenerated into a brutal battle of stamina. Our economy has endured $150 oil haymakers and countless jabs in the form of a never-ending stream of terrible financial data.

But at the end of it all, although Rocky’s face (e.g., the housing sector) was battered, bruised and bloodied; and although his legs (e.g., the U.S. consumer) were wobbly, Rocky was resilient enough to withstand the onslaught and knock Drago out of the ring. Our resilient capitalist economy will withstand the onslaught brought by subprime & oil prices – we will go on to fight another day!

Following his victory, Rocky gives an impassioned speech to the crowd, acknowledging their initial disdain for each other, and how he and Drago came to respect each other during the fight. Clearly the analogy applies once again: without question, this mortgage & oil crisis has opened people’s eyes and established a whole new level of respect for the role of financial prudence in a stable economy and the serious energy challenges we face.

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Gas Prices Creating Major Changes in Travel Behavior

Today the Federal Highway Administration released their monthly traffic volume trends report for May 2008, and the data show a trend that is significant, although not surprising.

• Nationally, travel on all roads declined by 3.7% for May 2008 as compared with May 2007. This marks the 7th consecutive monthly decline in this metric.
• On a moving 12-month basis, total traffic volume fell by 10 billion miles, to 2.966 trillion miles. This is the lowest level in 3.5 years – since January of 2005 - and this metric has also declined in each of the last 7 months (the chart shows traffic volume from 1983 to 2008 – click to enlarge). 

There has never been a trend remotely like this. The current, ongoing 7-month decline represents the most significant adjustment to driving behavior in the last 25 years, if not longer. And these data are only through May…gas prices continued to rise through June and into July…the trend will continue.

Local Addendum: Traffic volume in the Northeast declined by 4.2% for May 2008 as compared with May 2007. Meanwhile, the MBTA announced that average weekday ridership in May was about 5.3% higher than during May 2007. It was the fifth monthly increase in a row. And…average weekday bus ridership crested over 400,000, which is only the fifth time in the past 101 months it had reached that level.

Decreasing traffic volume and increasing public transportation ridership are two sides of the same coin.

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The Media Has a BAD Case of Obamania

Analogy – Media:Obama :: Lewinski:Clinton

Explanation: Last week I heard a primetime network news person declare, “Obamania is here to stay!” It’s not the first or last time such absurd media bias will show up on my TV screen. But anyway, what is this Obamania that’s evidently sweeping the nation? Well, let’s see, according to Webster’s:

• Mania - (1) A form of mental disorder marked by great elation and violent action. (2) An irrational and prolonged desire or enthusiasm.   

Ah! Now I understand why the media thinks Obama is the second coming of Jesus Christ – they’re suffering from mental illness. Have you been afflicted with this horrible new disorder? The media has caught it really, really bad, and the symptoms have been quite embarrassing for them. Just watch:

And the coverage has become a lot more pathetic this week since Obama’s been on his arrogant and presumptuous international coronation tour. But hey, look on the bright side - with all this Obama worship by the establishment media at least one industry is booming during these difficult economic times…I reckon demand for knee pads is skyrocketing!

Addendum: If you’re afraid you too may be suffering from Obamania, be on the look out for other common symptoms, including: a strong sense of entitlement to things you did not earn, and a firm belief that your shit doesn’t stink and you know what is best for everybody. 

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5 Questions

1. Are Facts Obsolete? Economist Thomas Sowell points out that many of Barack Obama’s positions are seemingly based on the notion that believing is seeing rather than actual information about the successes and failures of different policy concepts.                                 My Take: I share his frustration, particularly when it comes to important economic policy issues. There is an unbelievable amount of rhetoric in this election, and most of it belongs in the category of: be careful what you wish for, you just might get it. Restricting trade and raising the tax on captial gains will help our economy and “the common man”? You sure about that? Increasing the minimum wage sounds good, but will it actually benefit lower-skilled and less-experienced workers? Why don’t we look at the facts and the data instead of just saying things that make people feel good?

2. What’s Next, Danny? Celtics’ GM, Danny Ainge, had to make the first tough decision of the offseason, opting not to offer four years to James Posey, who instead signed with New Orleans. So, who will fill Posey’s shoes?                      My Take: This is a tough one. For the Celtics, Posey was probably the most valuable  bench player in the NBA last year, and it won’t be easy to replace his defense and 3-point shooting. There is something about bringing back Ryan Gomes that just feels right. He’s a solid player and Boston suits him - he’s the NBA equivalent of a “dirt dog.”

3. Is Failure No Longer An Option? Larry Kudlow raises an important and difficult question about the role of government intervention in the troubled financial sector (e.g., Fannie/Freddie, Bearn Sterns).                                           My Take: Here is what makes me uneasy and indecisive about the crisis playing out in the financial sector right now: On one hand, there are significant negative consequences when large companies fail, and government should play a role in supporting relative stability; BUT, on the other hand, if government steps in too far in “bailing out” these various financial entities, it undermines a cornerstone of our economic system, namely, risk. Risk begets reward and reason. This is a question of moral hazard – if they know the government will swoop in to save the day, thereby eliminating all risk, why would these companies bother making reasonable, thoughtful decisions in this first place? With respect to these bail outs, etc. we need to walk a fine line. If there is one thing we should all keep in mind when thinking about this issue, it is that capitalism only works when there is opportunity for great success AND opportunity for great failure.

4. Beer: Is There Anything It Can’t Do? George Will explains why beer has helped to strengthen the human gene pool.                                                      My Take: OK, this one is obvious. The answer is, emphatically, NO. He’s written a really interesting article, but for important questions like this, I generally defer to another genius of social commentary, who has famously proclaimed, “Beer: the cause of, and solution to, all of life’s problems!”

5. Why End The Income Tax In Massachusetts? Question 1 on Massachusetts’ November ballot will be a proposal to abolish the state’s income tax.                 My Take: Vote Yes on Question 1. Revolution is in the air once again in the cradle of liberty. The blowhards on Beacon Hill are bloated with your tax dollars and mine, and it’s high time we send them a message. I don’t think anyone would dispute that there is a ridiculous amount of wasteful and inefficient spending in our state government. This law, which almost passed in 2002 with 45% of the vote, would effectively reduce the state’s budget by 39%, back to the 1995 level. The opposition to this law will say that the world will end if it passes, but I’m prepared to call their bluff. I mean, it makes sense even if you set aside the benefial effects of putting this money in the hands of the private sector instead of the public sector. Just consider this: Between 1990 and 2007 the population of Massachusetts (i.e., the people served by government) grew 8.3%. During that same time period, Massachsuetts state government spending more than doubled.

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Independence Day – We Should Celebrate America and Her Symbols

The Great Seal of the United States

On July 4, 1776, the same day that independence from Great Britain was declared, the Continental Congress also named the first committee (consisted of Benjamin Franklin, Thomas Jefferson, and John Adams) to design a Great Seal, or national emblem, for the country. Similar to other nations, The United States of America needed an official symbol of sovereignty to formalize and seal international treaties, transactions, etc. It took six years and three committees in order for the Continental Congress to agree on a design. The final design of the Great Seal includes a shield reminiscent of our national flag, an bald eagle (well-known national symbol of the United States), and arrows along with olive branches to represent the power of war and peace together.

I mention the Great Seal because, against my better judgment, I recently visited Obama’s website to peruse some of his policy statements. But before I could even dip my toe in the rhetorical pool, I noticed that the background image on his website is a perverse distortion of the Great Seal of the United States (see below). The image shows Obama’s “rising sun” (er, implication, “rising son”?) over the U.S. shield and flag. The eagle is dropping the olive branches and the arrows, turning its back and flying away. And, one of the arrows is piercing through the American flag. This modified Great Seal is the background image on every page of Obama’s website.

So, why would Obama want this image to represent him? What is he trying to say/convey? If you were running for President, is this the image you would you want on your website? Honestly, I’m not bringing this up just because it is an opportunity to level criticism against Obama. I genuinely wonder about the mentality behind this image, and it bothers me because it seems to be indicative of a disturbing, growing consensus that we need to “remake” the country and that so many people feel they are just “too good to be American.”

That said, it’s worth pointing out that I’m not basing my decision to support McCain exclusively on things like this. My mind was made up long, long ago (before lapel pins, reverend Wright, Bill Ayers, etc.) based on the simple notion that I’d prefer to elect someone who is experienced and similar to me and the majority of Americans in terms of the political spectrum: basically in the middle, but slightly to the right with respect to the military and taxes. Obama is woefully inexperienced and has a voting record on the far-left-wing, even by his own party’s metrics. No, thank you.

Look, America has a history of setting uniquely high standards for itself, and by those standards, sometimes we fall short and need change and a chance to refresh. Bush is a dope, and overall, has performed well below-average as President. One could even make a pretty strong case that some of his actions constitute impeachable offenses under the Constitution. All of that – granted. I agree that we need change. But Obama and his “Great Seal” does not reflect the kind of change we need and is certainly not change I can believe in!

America is not a mean, evil country. We do not need to “remake” America. I’m bothered by the fact that optimism and pride towards our country, and simply being American, seems to get scarcer with each passing day. America is, both in action and principle, a fundamentally good country and a force of good in the world, despite what so many self-righteous liberals would have you believe. The beauty of this country is that it is what we make it. And this election season, we should make it a country that respects the heritage and values represented by important symbols like the Great Seal, and reject those who would desecrate these symbols.

I apologize for the histrionics – didn’t mean to get so caught up in the symbolism of this Obama seal thing. Maybe I just need some time away from Newton and Cambridge…people’s distain for “Brand America” is palpable around here. Anyway, today is Independence Day so I’m going to shake it off, go out, and celebrate my independence from pessimism and my optimism for American now and in the long-run!

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Assorted Articles from this Week (that you might enjoy)

In Science:

Sarcasm Seen as Evolutionary Survival Skill

What great news! I fully embrace any and all evidence that justifies my predisposition towards being a sarcastic ass

In Real Estate & Construction:

Ailing Builders Getting Back Into Land Game

Interesting article on the current market’s effect on land value and current activity by construction firms to stockpile land (at low prices) in anticipation of renewed residential construction activity. Builders are slashing prices to clear the glut of inventory left in the wake of the housing bubble, and at the same time, slowly “re-coiling the spring” of new land development by taking advantage of the pass-through effect of low prices on the cost of raw land. 

In Sports:

The World’s Greatest Athlete

A panel of sports experts sifts through a mountain of data and pick the fastest, strongest, most agile athlete on Earth. Oh please don’t let it be A-Rod…

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A Global Perspective on Some of the Important Things

Broadening our perspective on some of the important things in life - like the state of humanity, gas, and of course, beer:

• The World Clock - Check out the World Clock (click link or picture) to see active running statistics on population, deaths, illnesses, energy use, environment, food, crimes, and more. If you click on “Day,” “Week,” or “Year” it shows running totals for that period, if you click “Now” it will reset the counters to zero.

• The Price of Gas – I gathered data on the price of gas in 28 countries as of early June. Guess which country still has the cheapest gas of all? Four bucks a gallon really sucks, I’m just saying, it’s a lot worse pretty much everywhere else.

•  The Price of a Pint – The price of beer in 204 countries (click link or picture).

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The Constitution Is Not A Suicide Pact

 

The nation will live to regret what the court has done today.” Justice Antonin Scalia, in dissent of Thursday’s Supreme Court decision

The Supreme Court ruled Thursday that foreign terrorism suspects held at Guantanamo Bay have rights under the Constitution to challenge their detention in U.S. civilian courts. So let’s get this straight, Islamic-jihadists, terrorists are entitled to American constitutional protections??? What’s next, our Marines need to pull-up in the heat of battle to issue Miranda Rights?

Justice Anthony Kennedy, writing in support of the court’s decision, said, “The laws and Constitution are designed to survive, and remain in force, in extraordinary times.

Yes, of course – But at the same time, as Abraham Lincoln said in response to charges he was violating the Constitution when he suspended habeas corpus during the American Civil War, “the Constitution is not a suicide pact.” What does this mean? It means that, in some instances, bending over backwards to support “legal niceties” should not always take priority over our national security. Thomas Jefferson expressed the same sentiment when he made the Louisiana Purchase in 1803 (since he believed a strict interpretation of the Constitution did not actually give the federal government the right to acquire foreign territory):

A strict observance of the written law is doubtless one of the high duties of a good citizen, but it is not the highest. The laws of necessity, of self-preservation, of saving our country when in danger, are of higher obligation. To lose our country by a scrupulous adherence to the written law, would be to lose the law itself, with life, liberty, property and all those who are enjoying them with us; thus absurdly sacrificing the ends to the means.”

Thursday’s decision by the Court (made with the slimmest possible 5-4 majority) is dangerous, not only in principle, but also literally dangerous to our nation.

From the NY Daily News: In sum, the court bestowed upon the judiciary the power to decide who can be held as an enemy combatant whenever judges feel inclined to intervene.

In dissent, Chief Justice John Roberts criticized his colleagues for striking down what he called “the most generous set of procedural protections ever afforded aliens detained by this country as enemy combatants.” As Roberts put it, Americans “today lose a bit more control over the conduct of this nation’s foreign policy to unelected, politically unaccountable judges,” a group that is hardly qualified to make life-and-death calls as to which prisoners are terrorists and which are simple goatherds, as they all claim to be.

Justices Samuel Alito, Antonin Scalia and Clarence Thomas also dissented. Scalia said the nation is “at war with radical Islamists” and that the court’s decision “will make the war harder on us. It will almost certainly cause more Americans to be killed.”

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George Will Raises The Bar On NPR

I don’t regularly listen to NPR, but I’ll tune into almost anything when someone as brilliant as George Will (one of the most widely recognized writers in America) is on. George was a guest on Tom Ashbrook’s show, OnPoint, for about 40 minutes on Monday, during which time, he discussed a whole bunch of topics, including conservatism, cycles in American society, Madison’s framing of the Constitution, the upcoming election, past elections, the war, foreign policy, and climate change economics.

To be sure, I don’t agree with George Will on every issue, but the man’s commentary is always punishingly reasoned and incisive – I love it! I mean, it is so easy to appreciate his writing and commentary whether or not you agree with his point of view. To paraphrase a caller from the radio show, he writes about issues without rancor and vitriol towards dissenting opinions, and because of that, it allows you to understand and think about things without all the rhetorical filler that normally permeates political journalism.

Anyway, I guess the point of this post is just to say I really enjoy reading his columns, and to point you to the Audio File of his OnPoint appearance if you want to listen. Also, he has a new book, One Man’s America: The Pleasures and Provocations of Our Singular Nation, which I’ve moved to the top of my ‘to read’ list

Addendum: George Will gave the commencement speech at Boston University when I graduated in 2003. The subject was baseball so, as commencement speeches go, it was surprisingly tolerable.

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Sunday Funnies

Source: Townhall.com

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If I May, Some Thoughts on Iran

Jihadists read history and politics through the prism of their distinctive theological convictions, not through the lens of western assumptions about the progressive dynamic of history.” George Weigel – Faith, Reason, and the War against Jihadism

I have plenty of political opinions just like everybody else but I really do not want to delve into issues like this on a regular basis on this blog. But this issue, understanding the threat posed by Iran, is so important – please bear with me.

Here is what Iranian President Ahmadinejad (hereinafter, A-hole) said on Monday at a United Nations food summit, of all places:

I must announce that the Zionist regime (Israel)…is about to die and will soon be erased from the geographical scene. Today, the time for the fall of the satanic power of the United States has come and the countdown to the annihilation of the emperor of power and wealth has started. I tell you that with the unity and awareness of all the Islamic countries all the satanic powers will soon be destroyed.”

Gees, point taken, douche bag. Iran, with leaders like A-hole, is already a very serious threat and has the potential to be a threat unlike any western civilization has faced previously: apocalyptics with nuclear weapons. The last time we faced a serious nuclear threat was during the Cold War. But this situation is SO very different and deterrence strategies, in this case, will not work. Allow me to quote an example from George Weigel’s excellent book that highlights the key reason why:

In Iran, eleventh-grade textbooks teach that ‘in the coming era-ending war against the infidels, Muslims cannot lose: Either we all become free, or we will go to the greater freedom of martyrdom. Either we shall shake one another’s hand at the victory of Islam in the world, or all of us will turn to eternal life and martyrdom. In both cases, success and victory are ours’.”

You see, during the Cold War, fear of our mutually-assured destruction was a primary deterrent that held both countries at bay (i.e., the Soviet Union and the United States both knew that if one country bombed the other, both countries would be wiped off the map). The key point here is that A-hole and other jihadists are apocalyptics for whom “mutually-assured destruction is an inducement rather than a deterrent.” The jihadists prize martyrdom – they want the battle we never engaged in during the Cold War. And A-hole is doing everything he can to hasten the achievement of that goal.

The consensus opinion (more often proven to be incorrect than correct) is that Obama will be the next President of the United States. I don’t presume so. But, if he is elected, then before he makes arrangements for tea and crumpets with this psychotic despot from Iran, Obama ought to stop and seriously consider the nature of this complex problem and what it would mean if Iran were to acquire nuclear weapons. Thomas Sowell does a great job of summarizing Obama’s flawed position on Iran:

Senator Obama’s foreign policy seems to be somewhere between Rodney King’s ‘Can’t we just get along?’ and Alfred E. Neuman’s ‘What, me worry?’”

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Massachusetts Clean Energy – Assorted Links

Here’s a sampling of links about recent happenings with clean energy in Massachusetts – there is a LOT going on. Clicking any link will open a new window so you won’t lose your place.

• Fenway Park unveils solar panels on roof - The green at Fenway Park will no longer be limited to the grass, historic rafters, and 37-foot-high wall in left field. Enough solar thermal panels have been installed on the roof to provide 37 percent of the hot water needed at the 96-year-old park, reducing annual carbon dioxide emissions by roughly 18 tons. The solar installation is actually part of two broader initiatives. City and federal officials announced Fenway plans to highlight Solar Boston, a $600,000 program aimed at increasing Boston’s solar energy output 50-fold by 2015. The Fenway solar installation is also part of a new MLB program, the Team Greening Program, which is MLB’s first league-wide eco-initiative and has teams all over the country starting green programs. The program provides each team with an individualized Team Greening Advisor, which is a Web-based software tool featuring advice and resources for every aspect of a club’s operations. For instance, the Sox are also making other changes, like switching the field’s lawn-mowers biodiesel and enlisting a group of 30-50 volunteers to collect recyclables between innings.

 

• NSTAR Green allows customers to buy wind energy - Earlier this month the state Department of Public Utilities approved a program that allows NSTAR customers to buy their electricity from wind farms in Maine and upstate New York. Customers who enroll in the NSTAR Green program will have to pay a premium on their monthly bill, $4 – $7 depending on whether you opt to buy half or all of your electricity from wind farms (although I don’t think many people are very excited by the idea of paying more for energy right now). National Grid has a similar program, GreenUp, and there are many other utility and non-utility options available. You can find out what your clean electricity options are based on your town by following this link to the Massachusetts Renewable Energy Trust. For the uninitiated, enrolling in a program like this has absolutely no effect on the reliability of your electricity service, and nothing changes in terms of the way electricity physically gets into your house. The only difference you will notice is the premium on your monthly bill.

 

• Massachusetts Green Jobs Act of 2008 - Last week, in an address to the Greater Boston Chamber of Commerce, House Speaker Sal DiMasi announced a new initiative directing millions of state dollars at growing the local alternative-energy sector. Dubbed the Green Jobs Act of 2008, the bill would allocate more than $50 million to the creation of new jobs and revenue in the state’s clean energy industry. The initiative is directly aimed at creating jobs in the clean-energy sector, particularly through start-ups, and is designed to “attract hundreds off millions of dollars in venture capital, create thousands of new jobs and millions of dollars in new annual revenue for the commonwealth,” according to a statement by DiMasi’s office. On a related note, the clean energy industry in Massachusetts is already booming – supporting about 15,000 jobs - and is about to overtake textiles as the 10th largest employment cluster in Massachusetts, according to a “census” of the clean energy industry released last year by the Massachusetts Technology Collaborative (MTC). Click the thumbnail image to enlarge the picture. 

 

• Newton/Needham Chamber to present Green Business Solutions Expo - All over Newton and Needham, businesses are looking to go green, and for the first time, the Newton/Needham Chamber of Commerce will present an expo to help them learn to adapt to a new, environmentally conscious business climate. The chamber’s first-ever Green Business Solutions Expo will take place at the Newton Marriott Tuesday, June 3. Speakers will cover topics including recycling, organic lawn care, energy conservation, and how businesses can apply to receive government grants and rebates. Fifty-five exhibitors are expected. Chapman Construction and Designis going solar, and for Guy Compagnone, the company’s director of sustainable practices, the business decision is a no-brainer. “If you’re pioneering right now, you’re ahead of the curve. If you’re not, you’ll be far behind and have to catch up later. Straight up, there’s a reduced utility cost, much lower environmental impact and client attraction,” said Compagnone. 

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Energy Efficiency: Low Hanging Fruit, Ripe for the Picking

…crude oil $125 per barrel, climate change, energy independence, insufficient electricity infrastructure, volatile prices, and the list goes on…

Energy efficiency is probably the most successful but least appreciated strategy for dealing with the significant energy challenges we face in blazing our country’s path to prosperity during the 21^st century.

For example, U.S. energy consumption at the end of 2008 is expected to total half of the energy consumed in 1970 thanks to investments in energy efficiency according to a new report from the American Council for an Energy-Efficient Economy. And, there remains a huge amount of opportunity for additional, profitable investments (a recent McKinsey study estimated the existing energy efficiency market is about $170 billion per year to the tune of a 17% annual rate of return). Here is a summary of the ACEEE report:

Washington, D.C. - It’s the U.S. energy boom that no one knows about. Energy efficiency may be the farthest-reaching, least-polluting, and fastest-growing energy success story of the last 50 years. But it also is the most invisible, the least understood, and in serious danger of missing out on needed future investments. The ACEEE report, The Size of the U.S. Energy Efficiency Market: Generating a More Complete Picture, concludes that “…our nation is not aware of the role that energy efficiency has played in satisfying our growing energy-service demands…the contributions of efficiency often go unrecognized. The contributions of energy efficiency often remain invisible…” The report also notes that although efficiency is a proven resource, it remains underdeveloped. ”In short, the evidence suggests that efficiency can make an even larger contribution towards stabilizing energy prices and reducing greenhouse gas emissions – should we choose to fully develop it.”

Key report findings include:

• The U.S. stands to gain enormously from additional investments in energy efficiency, and could reasonably reduce consumption by as much as 30 percent during the next two decades.
• Future efforts would bear additional fruit through the creation of green collar jobs. Annual investments in energy efficiency technologies currently support 1.6 million U.S. jobs. The $300 billion invested in energy efficiency in 2004 was three times the amount invested in traditional energy infrastructure.
• Investments in energy efficiency technologies are estimated to have generated approximately 1.7 quads of energy savings in 2004 alone – roughly the equivalent of the energy required to operate 40 mid-sized coal-fired or nuclear power plants.
• Since 1970, energy efficiency has met about three-fourths of the demand for new energy-related services while conventional energy supply has covered only one-fourth of this demand.
• Nearly 60 percent of energy efficiency investments made in 2004 were from the buildings sector, with nearly half coming from appliances and electronics.

Now the key is to pick up all this free money lying on the ground. There are a ton of energy efficiency resources on the internet for homeowners – here are just a few:

• ACEEE Consumer Guide to Home Energy Savings
• Department of Energy Energy Savings Calculators, or the Home Energy Saver tool
• Database of State Incentives for Renewables and Efficiency (DSIRE) – Just click your state to see all the state, local, and utility incentives offered. Basically, your electric or gas company will cut you a check for all kinds of things from caulking windows to buying more efficient appliances. Here is the Massachusetts Homeowner Incentives page.

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