MISSISSIPPI

We are in Mississippi, a little over three hours from home, at our granddaughter (Lindsay) [and her parent’s] house!! We drove up just after lunch on Friday. I’m writing this on Saturday afternoon. The girls just headed to the store and the boys are out in the woods. I’m here alone with a sleeping Lindsay. So, I decided I’d write my blog post until she wakes up and then I’ll get some extra one-on-one time with her.

Yesterday evening, my sons and I went to our son’s place of work to fly on one of the navy simulators. The simulator is of the Navy T-45 Goshawk jet. There was a “winging” ceremony earlier in the day where new pilots got their aviator wings, so the simulators were empty early in the day. Other times we’ve gone we’ve waited until all the pilots got finished flying them before we went, which was usually after 11pm.

Time out: Lindsay woke up. There was a baby monitor sitting on the table next to me. I went in and got Lindsay and everything went well until I went to change her diaper. With pretty well one functioning hand, diaper changes are a real challenge once babies get to the squirming age. After a little bit of tussling and a few tears shed by Lindsay, we got finished. Well, the baby monitor also has a breathing sensor alarm that was sounding that I couldn’t figure out. I unplugged it but it has a battery backup. Finally I figured out that the cute little angel wings on the monitor were switches. After Lindsay and I got that all figured out, I gave her a snack. We then headed outside into the heat for a walk. Afterwards, we went back into the house to get some air conditioning. I put Lindsay down to play but she wasn’t real keen on the idea. So, I picked her back up. We walked around for a little bit before heading back outside. After walking down the road a little ways, I noticed the boys coming out of the woods. So, we headed over there. Lindsay had a great big smile and yelp when she saw her daddy. I kept holding her though and she stayed happy. Soon the girls came home and so I headed to the house. Lindsay was greatly happy to see her mommy too. Now things are back to normal and I’m back to the blog.

Anyway, we flew the T-45 simulator late into the night making both land and aircraft carrier takeoffs and landings. We had a great time although we did crash a few times. I missed the airport one time and tried to land on a nearby interstate. It went well until the very end. It’s amazing how realistic these simulators are. I started to get airsick while watching my younger son do rolls etc. It was great fun.

Before going for today, I want to mention that I was quite saddened to learn about the loss of so many troops who were shot down in Afghanistan. It was the single deadliest incident in the Afghan war. Although this is tragic, military deaths have been on the increase lately especially in Iraq. Our military is filled with amazing people who risk their lives for the American ideals that we are often too lax to appreciate. Finally, regardless of your political striping, you’d have to admit that military deaths, poverty, homelessness, and AIDS are generally mainly splashed in front of us when a republican is in the oval office. Otherwise, the news media keeps them at a low profile. Anyway, the point is that the military deaths have been ongoing and we owe a lot of families a great debt of gratitude.

LIGHT OF THE WORLD

Some may think that my recent blog posts sound a bit like an alarmist. However, look at the stock market and the new debt load now being 100% of GDP - - - 100% of all the goods and services this nation produces. Now, did you see the latest economic news? According to the U.S Department of Agriculture, 15% of Americans relied on food stamps in May. That is both astonishing and sad for this country and its people.

While some people continue to cry at the slightest mention of government cuts, at some point the realization must surely be made: We can’t continue like this. We can’t continue to have so many Americans out of work because we have an economy too fragile to take them on. President Obama’s stated desire to have us become no different than the rest of the world must be rebuked. Putting more people under the auspices of the government is not only breaking the will and spirit of American independence and entrepreneurialism, but it is also breaking our financial solvency too. We are not Europe and we are not the rest of the world. We are a divinely blessed nation: The United States of America.

Regardless of whatever government program you may be benefitting from, you could face the choice of either having it cut or having the nation default…and then your program eliminated. We can no longer say cut the other guy’s program but leave mine alone. This country has borrowed so much money to fund everyone’s programs that the debt is crippling every aspect of the economy.

Not only has this nation needed a spiritual revival for many years, it now consequently needs an Americana revival too. In the same way that we need to get back to the basics of our faith, we need to get back to the basics of Americanism. This nation was blessed as a light on hill for all nations but we are seeking to be as dark as much of the rest of the world. We need to stand up and be counted for who we are meant to be. It takes moral courage and discipline… the very things we have faltered on as a spiritual people and as an economic nation, but stand we must as the light of the world.

THE FAA DEBACLE

Over 4,000 Federal Aviation Administration (FAA )workers have been furloughed and another 70,000 airport construction workers are sidelined because of a legislative impasse in Washington. The FAA bill was passed over two weeks ago by the House and has been sitting in the Senate. The Senate’s objection to the bill is over two provisions. Rather than vote it up or down, the Senate is crying for the House to come back and rewrite the bill in a “clean” way that the Senate leadership would like.

The first objectionable provision in the bill is that it cuts 16 million dollars in subsidies for small airports. For example, the airport in Ely, Nevada receives $3,720 per ticket in subsidies. Further, each airport that would receive this subsidy cut has a larger airport within 90 miles. As one representative said, “"If we're having this fight over $16 million in subsidies, how are they going to get trillions (of dollars in cuts) from government?” That’s a good question. After the debt ceiling was raised, the government quickly borrowed more money taking our borrowing up to 100% of GDP. We can’t keep going like this. It’s not a matter of what makes good sense any longer; it’s a matter of solvency.

The other objectionable provision is one that overturns a National Mediation Board rule approved last year that allows airline employees to form a union by a simple majority of those voting. Under the old rule, the union had to get a majority of the workers, not just those voting. In other words, workers who didn't vote were counted as "no" votes. The democrats continue to push for increased union power. Meanwhile, not only are corporate taxes driving businesses overseas, but so are unions. Besides the good that unions once served and possibly may serve today, one thing is for sure: They drive up labor costs. When labor costs get so high that a company can’t compete on a global market, it finds cheaper labor overseas or in Mexico. Labor costs are the greatest cost to most businesses. To maintain their profit margin, companies increase the cost of their goods in compensation to higher wages. Thus higher wages are inflationary. It becomes a vicious cycle. Wages go up; soon the cost of products follows; thus the cost of living is higher, and now workers want higher wages because of the higher cost of living. It’s craziness. Anyway, why are the airlines against unions? Simply, they can’t afford them. Can America afford them these days?

So, Congress is on recess for the rest of the month while the FAA bill languishes in the Senate. Meanwhile, the government has been losing about 30 million dollars a day in uncollected airline ticket taxes since the shutdown began on July 23^rd. That’s when the FAA’s operating authority ended. So, while the shutdown is costing 74,000 jobs and 30 million dollars a day, Congress is on recess. That is just one sign that things need fundamental change in Washington.

I have one other comment. It takes 4,000 people to run the FAA? We’re not talking about the airlines here. We’re talking just to run the FAA. I suppose it reflects the ugly fact that 608 new government (not just FAA) regulations were put into place in July alone. No wonder the government is so big. In addition, it takes 70,000 construction people to work 200 airline construction jobs? No wonder we see so many union construction guys standing around.

WORTH A THOUGHT

The percent of people paying NO taxes in America is nearly 50% (47%). Yet, they partake in roads, bridges, buildings, and other infrastructures along with benefits of having police, military, schools, public safety, and other government programs and services. The list goes on. It’s bad enough that only 50% of us are paying for the other 50%. To me though, there is something worse. These people also vote.

Who do they vote for? They vote for politicians and the party which keeps taxing those who pay taxes so as to redistribute the money to those who don’t pay taxes. During the discourse of debt and tax debate, of course these people are for higher taxes. Other people pay the taxes and they reap the benefits!! It’s quite possible that 50% of those entering a voting booth pay no taxes, and they vote for people who will raise taxes on the “rich” so as to enrich their government benefits.

We now have a system in which the top 25% of wage earners pay 86% of the income taxes. The upper 50% pay 97% of the taxes while the top 1% pays 39% of the taxes (In contrast to 1980, the top 1% paid 19% of the taxes). Again, that leaves 47% who pay no income taxes. The top earners keep paying more and we keep paying more, while the rest pay none of the tax burden.

Not only are the taxpayers tired of being targeted for everyone’s government and personal wish list, but I can imagine that the top earners are becoming a bit resentful of having to pay for everyone else. I must say that I’d like to be one of the top earners to see if I’d become resentful too!! Anyway, meanwhile, many politicians play on our natural human tendency toward envy, greed, and covetousness as they maintain the constant chorus to go after the “rich.” In reality, it’s the non-taxpayers going after the taxpayers again and again.

When this country reaches the point where over half the voters don’t pay taxes, which we are currently perilously close to right now, we will be on a fast track to follow the Roman Empire. A taxpaying minority can’t sustain the rest of a population for very long. Yet, that is exactly what will happen if we don’t stop the political class warfare. If the tax burden isn’t more widely shared and more evenly distributed, combined with cutting our expenses, we will be such a top heavy taxed society that we will topple.

Non taxpaying citizens must stop voting for politicians who continuously promise them more and more program and service benefits. It is sooooooooo self-serving to vote yourself benefits that others have to pay for. Besides the ethical and moral question it raises, with an aging population and fewer younger taxpayers, we are reaching an untenable position. Just think of how it would change who occupies the Whitehouse and the composition of Congress if only taxpayers voted. It would revolutionize the country and the scope of government. It’s worth a thought…

DONE DEAL

The deal to raise the debt ceiling is done. The Washington Post’s lead story screamed that the cuts were “sharp” and “severe.” However, and please read these words carefully, there are no cuts to federal spending. I repeat: There are no cuts to federal spending. Remember the Baseline Budgeting we talked about yesterday? There are automatic eight to ten percent increases built into every program. The new debt ceiling bill reduces the increase by about one percent; there are no actual cuts to the programs, only a one percent reduction in their increases. In Washington, that is a “sharp” and “severe” cut.

Furthermore, the deal continues to add to the deficit, a deficit that we couldn’t afford before. Now we will be borrowing even more money. In Sen. Jim DeMint’s words, “This bill doesn’t cut the debt; it will add about $7 trillion in new debt over the next ten years on the backs of our children and grandchildren. This bill doesn’t stop deficit spending; it locks in trillion dollar spending deficits for years to come. This bill doesn’t stop tax hikes; Republicans and Democrats are already promising to consider job destroying tax hikes in this new Super Committee. This bill doesn’t protect our nation; it puts national security at risk with unbalanced cuts to funding (that) our troops in the field count on. This bill doesn’t guarantee our AAA rating; it puts it at further risk as the world sees Washington as incapable of cutting wasteful spending.”

Nevertheless, there are some real cuts occurring; they are in the Defense Department. Congress isn’t doing it but President Obama, through the Defense Secretary, has ordered the military to cut its budget. Despite currently fighting three wars, even the most hawkish military people agree that there is too much waste in the Pentagon. Yet, there is something about the debt ceiling deal that really bothers me. If the super-committee can’t reach agreement, then across the board cuts will be made in entitlements and the military. If indiscriminate cuts can be made in the military, then make them already. In fact, that is already being done. The point is though; do we make military cuts as punishment for not reaching a deal? Doesn’t more thought go into defense spending and cuts than that? Are not military dollars still regarded as the highest value dollars we spend? For sure, all dollars are not created equal.

If I was a betting man, I’d bet that most of the people reading this blog don’t know of all the military cuts that have been transpiring. It’s as if congress doesn’t know it either for it to put the military on the same chopping block as everything else. Besides the obvious national defense threats that this nation continues to face, and our need to be able to face any threat, there is another interesting aspect to the military cuts. It’s odd that not a word is spoken when defense cuts are made and thousands of military factory workers, servicemen, and support personnel lose their jobs. But make those same cuts to a different government program and you’ll again hear the weeping and gnashing of teeth.

A POLITICAL CONUNDRUM

This country is in a political conundrum. We can’t afford all the programs the government has but no one wants to cut any of them or raise taxes. The main problem is that the government has too many programs and funds too many needless projects. However, to the recipients of those monies, they are their lifeblood for financial existence. Any cut to those who have become dependent upon the government evokes the weeping and gnashing of teeth.

Another problem is what defines a cut in Washington. With baseline budgeting, an eight to ten percent increase is built into every program. Therefore, if a line item is only increased by four percent, then it is decried as a four to six percent cut, even though there was an actual four percent increase. Not even these Washington types of “cuts” can be done without the hue and cry of foul play.

A third problem is that Washington operates like the worst credit card abusers among us. They spend to the point where the interest on the debt is as big of a problem as the original debt. Washington should be stalwarts of fiscal responsibility. Instead, they spend as much as they need to in order to keep vocal constituents happy, regardless of its fiscal prudence. As the whining of those who want “free money” from the government reaches fevered levels, our representatives in Washington do what keeps these people from being upset with them: Award them with money.

It seems that too many politicians are more concerned with their own electability than they are with what is the right thing to do. It’s hard to grasp the manner in which they are so financially irresponsible in a way that no citizen can afford to be. Yet, they feel trapped. If they do the right thing and be responsible, making real or Washington-type “cuts,” they fear the backlash of the electorate. As an example, a lot of politicians believe that cuts need to be made to the Medicaid program. The program subsidizes too many able-bodied Americans. Because of the backlash of such a cut though, most politicians will never vote to do what they believe. They don’t want to put their jobs in jeopardy. Thus that which is politically expedient trumps that which is financially responsible. It leaves us in a real political conundrum.

CONSUMING ECONOMY

Eileen and I had set a savings goal that once we reached it we would do some bathroom revisions. Even though we reached that goal, I suggested to Eileen that we wait until we see what this economy is going to do. She agreed. Thus we are contributing to the very problem that is stifling this nation.

This nation’s economy is a consuming economy. That’s to say that our economy is dependent upon people buying (consuming) goods and services. Stores, shops, businesses, factories, and even hospitals can hire people only if other people purchase goods and services from them. If they don’t make “sales,” then people get laid off or terminated. The more demand there is for products and services, the more people get hired to meet that demand. The health of our economy needs and people’s jobs depend upon others consuming goods and services.

And so, people need our bathroom revision to take place but we can’t put our own status in jeopardy to make that happen. This very scenario is what is happening throughout this nation. Businesses and consumers aren’t consuming right now because of the uncertainty of the economy. Everyone is hunkering down in anticipation of hard times continuing, or worse times ahead.

Some people think that an answer to our problems is to raise taxes so that the government can have more money. We all know that the government never has enough money and it always spends everything it gets, and then some. That’s why we have a debt ceiling crisis right now. Yet, giving the government more money to spend doesn’t cause consumers to have the confidence required to spend. Thus the demand for non-essential products remains weak. Increasing taxes on the “rich” who are the ones who control the job market and are the only ones spending discretionary income in a bad economy seems quite counterproductive. This is not a time for class-envy or coveting our neighbor’s goods.

Washington and its subjects need to temper its lust for money. Its appetite is so veracious and out of control that it borrows 40 cents of every dollar it spends. The government doesn’t come close to living within its means. That scares businesses because the government always goes after them for more revenues. When the government increases the businesses’ cost of doing business, the businesses pass it on to the consumer. In an economy where consumers are already skittish about buying, increased prices make matters worse. Without the necessary sales, businesses don’t hire and the whole adverse economic cycle keeps going.

It seems reasonable to me that this is the worst time for the government to be taking money out of people’s pockets. Businesses need the money to hire and expand while consumers need the money to consume and make the whole system work. The big problem is that we keep mixing socialistic government concepts with free market principles. It’s like mixing oil and water. The more dominant the government is, the more it chokes the free market system. Our economy is dependent upon the consuming of goods and services.

The economy and people’s jobs needs all of us to make bathroom revisions, home revisions, car purchases, washers & dryer purchases, and such. Meanwhile, we need the government to get out of the way by first getting its house in order.