Showdown in Pennsylvania: Will the Clintons finally read the writing on the wall tonight?

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For the past six months, mainstream media has been playing catch-up with me. Their talking heads have proven over and again, that their analysis fits in precisely with their agenda of pseudo sensationalism: for attention and profits no doubt. This counterfeit sensationalism has thrived because of one simple rule: in US politics most folks refuse to do the heavy thinking. Thus mainstream media will stir up the pot more times than a witch stirring a burning cauldron. And like the witches of Macbeth: mischief is their only brew. This supposedly unending presidential primary between Barack and Hillary has been over since Super Tuesday, last February 5th, 2008; somebody wake up the mainstream media please.

What’s Your Trade Gap?

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I generally try to stick to my knitting here on Room 8, and write about things that I have at least some level of knowledge and expertise that the reader does not. And I am not an expert in trade economics. Yet with the Republican Presidential Primary over and the amount of immigration nonsense therefore reduced, I couldn’t help but notice the amount of foreign trade nonsense emerging from the Democratic side. It’s yet another variation of the early 1990s anti-welfare crusade — if things aren’t going well, find someone black or brown to blame. Well I have a message for all those worried about the effect of foreign trade on their economic well being. Trade cannot hurt this country, only help it, if the amount we export equals the amount we import. And how much is exported and how much is imported is not decided in a trade negotiation. It is decided in every American family. Lots of Americans have chosen to spend more than they earn, going deeper into debt to do it, and when you add them all up the United States as a whole is consuming more than it is producing. Before pointing the finger at NAFTA or the Chinese, ask yourself “what’s my trade gap?” If you have one, trade agreements aren’t the problem, your personal financial choices are.

I Want My Fair Share of the Street

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So the State Assembly has non-voted down congestion pricing. Although I was in favor for reasons I explained here last year, so be it. My chief concern was that the state legislature would enact congestion pricing, claim that it had done its fair share for transportation, be believed, and thus escape blame for the onrushing consequences of all the debt dumped on the MTA from 1992 (or so) to 2009. I hope, now that CP is off the table, that blame will accrue where it is deserved: the MTA Capital Plan hasn’t been sensibly funded since Richard Ravitch was in charge, and the funding for roads has been no better. But I’ve said my piece on that problem, and will otherwise leave it to the congestion pricing opponents to solve.

Now that it has been established that crossing into the Manhattan Central Business district will be free, driving on the congested streets will be free, and parking there will be free for many, however, I believe it’s time to re-think how that scarce space on the street is allocated. With all the taxes I and other non-drivers pay for that street space, I don’t think we’re getting our fair share, and want more of it. Specifically, I want more street space taken away from motor vehicles and allocated to pedestrians, who live in an area or arrive by transit, and bicyclists. I am both. And, I want more street space allocated to those who use private automobiles on weekends, for pleasure travel and visiting, rather than on weekdays to commute, by ending the practice of paying extra (a lot extra) to avoid road construction during rush hours.

The Governor Blinks

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It’s like déjà vu all over again.

 

For a while it did not seem thus. Through an infortuitous concatenation of events, for fourteen long and agonizing months of tumult and confrontation, it sometimes appeared that the line it had been drawn, and the curse had been cast, with the old order rapidly fading.

Stock Prices and Public Employee Pensions: A History

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Many Americans are feeling outrage over top executives who made risky assumptions, looked good in the short run, paid each other massive amounts, and walked out the door with enormous golden parachutes when their bets went sour. Shareholders — and perhaps in some cases taxpayers — are left with the bill. For the past 40 years, however, elected officials and the public employee unions that support them have done the same thing. Whenever the stock market has been on a tear, they have upped the assumption of future rates of return and handed out “free” pension enhancements, claiming the stock market would pay for it all. And later, when the stock market turned down and pension contributions soared, the resulting tax increases, service cuts, and diminished wages and benefits for newly hired public employees have been described as the “inevitable” result of “circumstances beyond our control.” The prior pension enrichments are never given back, just like those executive bonuses. There have been two such cycles in a general sense, as the attached chart shows. In recent years, however, the state legislature has been even more irresponsible – handing out more pension benefits even when the stock market is down, taxes are rising, and services are being cut.

Does the Times Want Elections?

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I was surprised to see the Times venting about the need for elections in an editorial.  “Any New Yorker who is not furious at the mention of their state capital, Albany, has not been paying attention,” according to the newspaper. So we should write letters and ask them nicely to do better, and give them credit for the slightest improvement? Perhaps not. “The place needs a thorough cleaning — a giant broom to sweep out the rascals, starting with the State Legislature. We are not in favor of term limits, but the idea gains currency when most people who get elected in New York State keep their seats until they retire, die or go to jail.” That does seem to be the two options doesn’t it — term limits or perpetual incumbency? Except at the state and federal level, where there is only one option, because they aren’t going to put term limits on themselves. “So, here is how to change Albany: find and support somebody daring and thick-skinned enough to run against the local legislator.” Well, from their lips to God’s ears. But I can’t help but contrast this editorial with the response of the newspaper when I took the trouble to run myself (as I wrote about here)– ignore what I was saying despite repeated requests, and then publish an editorial just before Election Day that said I was one of only two or three people running for election that no one should listen to.

Of World Class Fencing and Brooklyn Politics

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Every now and again something really nice happens in this life. If you are lucky and/or patient enough: it happens more often than not. This is not to downplay the everyday wonders of life- that marvel most of us who appreciate every waking day- but only to say that some days are sweeter than others; that’s all. For the most part, I have been lucky in this life; but that doesn’t mean that I haven’t had my share of bull-crap; believe me when I say I have; sometimes bad days have come in rows. All in all, bad days are few and far and in between; and I thank God for that.

Something nice happened on Tuesday 8th April, 2008, that I want to share with some of you. You see; there are over nine million political stories in this naked city: New York; this is a different kinda political story. Enjoy.

State Budget A Joke

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The state budget has passed, but to judge by news reports the Governor and State Comptroller have already said mid-year emergency budget cuts will be required. And we can only assume the victims will be the same as always — New York City schools, which will be diverting hundreds of millions of dollars out of the classroom to the retired as a result of the recent pension deal in any event, infrastructure and the poor. Money will be borrowed, and taxes will be increased — but not on the retired, who pay no state taxes. And all this will happen after the election. It’s one thing for me to say it. It’s another for them to say it. I guess they figure they don’t even have to pretend anymore.