I just spent a couple of hours reading scholarly pieces about the failures of the Trade Adjustment Act as it was implemented through the mid 1980s. This legislation was enacted to provide additional assistance to those who were laid off due to competition from foreign imports. It involved a supplement to unemployment insurance, plus entitlement to certain retraining, job search expenses and relocation allowances. Eligibility was based on an employer's petition being certified by the Department of Labor.
None of these pieces even remotely addressed how programs of this nature are truly wasteful and costly. They focused on overall ineffectiveness, the union vs non-union participation rate, idiotic theories on how it negatively impacted free markets and competitiveness, etc, etc, etc. Nowhere did they think to mention one of the main (attributes) of this boondoggle - the bureaucratic nightmare it presented to those charged to implement it. The avalanche of needless paperwork, forms, worker hours, reports and record keeping, time usage justification, frustration, diversion of limited staff and the other stuff that goes with it.
I was a youngster back then working in a relatively low level position for the state agency that handles payment of unemployment insurance and employment services. State Employment and Training agencies are historically minimally staffed during normal times, but add great numbers of part time or temporary workers during recessionary periods bringing high unemployment. By its nature, the newly hired are basically trained "on the job" to respond to increased immediate needs. They try their best to learn their jobs quickly under supervision of permanent staff.
I worked in so-called local offices during three recessions when people's actual names were called to file for their new or continued UI claims. Direct service given to unemployed individuals collecting benefits on a weekly or biweekly basis. "File the continued claims and get the benefit check a couple of days later in the mail" or initiate claims and get an award decision within three weeks. It worked reasonably well for the straight stuff.
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Enter the seemingly innocent Trade Adjustment Act of 1974 (with all its amendments). It was based on the simple notion that workers unemployed due to foreign imports should get a total package higher than others based on the impact of foreign competition. OK - if that is what Congress feels is justified - the agency staff will implement it. No big deal. But no - a phalanx of paper pushers, self justification junkies, congressional staff monkeys, clueless DOL dreamers, federal register mongers, and assorted other types have to include profoundly burdensome procedural processing regulations to make this basic concept into an impossibly complex act of terror. So monumentally labor intensive that it detracts from every other aspect of the staff's job functions. Unemployed TAA eligible claimants only really cared about getting the cash supplement to their regular UI benefits. This normally amounted to about 70% or so of their usual after tax wage. Only a miniscule amount even thought twice about job retraining, schooling or relocation. Most merely returned to their former job after temporary layoff (largely in the shoe or apparel industry) or just found better jobs. In the vast majority of cases, any counseling or training components were superfluous. Unwanted and undesired by the recipients.
But this didn't stop the burdens placed on local office staff workers who were compelled by regulations to spend time and energy individually meeting with the clients to explain and promote all the unwanted provisions. The staffers not only had to do this, but they had to produce mountains of paperwork proving it. They had to give all kinds of aptitude tests, score the tests, submit reports, counsel about the results and establish individualized plans. This to people who by and large were recalled by their former employers within months and had little or no interest.
So the staffers were beset by what some flunky in Washington or flaky congressional staffer thought was a good idea. It detracted from their ability to efficiently do their basic job. (Keep in mind that such relatively complex functions were assigned to the senior staff as most qualified),
Going back to the supplemental benefits received by TAA certified clients. It should be realized that all states, through the regular "reporting of wages" requirement on employers, have records of wages earned. This is how state unemployment taxes are paid by employers and how individual UI benefit rates are established. One would therefore think that it would be rather uncomplicated to simply arrive at a predetermined TAA supplement from wage information already on record. But no. Once again federal register regulatory requirements unleashed a series of formulas needing to be processed in order to arrive at the figure. Why merely utilize what was already available when the opportunity exists to demand additional cumbersome work. Why shouldn't a bunch of turds sitting in cubicles force their psychotic desires to be carried out by those with no choice. Heck, these anonymous paper pushers are paid to make life miserable for direct service providers. This is the reason for their existence - to transform the simple into the unwieldy. For God's sake - just tack on what is required to bring the total cash benefit to 70% of the previous average weekly wage and be done with it if that's what you want. That would be the rational way of doing it - the most cost effective method.
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So this little story from the front lines is just a vanishingly small example of what could readily be cut from our budget. One can multiply it by hundreds to see where so much of our tax revenue goes. To "little Hitlers" pervading government everywhere who continue to justify their needless existence by making the simple difficult. Who make the seemingly inexpensive profoundly costly. Those whose uninformed decisions and ill-conceived requirements made overburdened direct service staffers perceive the TAA eligible as the enemy at the same time that the TAA eligible perceive the counselors/testers as unwanted nuisances.
At the same time, of course, the focus of the highest trained and qualified direct service staffers was diverted from "normal" clients to fulfill the neurotic desires of bureaucratic nothings with nothing better to do than negatively impact those who they believe they have actually served when going to cash their paychecks for a job well done.
Granted, my story goes back a few years. But one would have to be far more than foolish to think that this situation is not even more egregious today. They are least dangerous when on their coffee breaks and lunch breaks. These types cut productivity so much and increase costs so much that it would actually be better if they called in sick 52 weeks out of each year. If we insist on awarding them a salary at least they couldn't do any damage if they didn't show up. (Just kidding).
If you really want to lower the federal budget deficit - eliminate these detriments to effectively functioning government agencies. They are parasites. They serve no positive purpose whatsoever. They detract from efficiency. They "earn" salaries by increasing costs and raising frustration levels. They are the bureaucratic equivalent of cancer and must be dealt with accordingly. All they bring is misery to anyone impacted by them.
Wednesday, April 20, 2011
Sunday, April 17, 2011
Department of JustA$$
So Senator Levin's permanent subcommittee just referred the matter of apparent perjury in testimony given by Goldman Sachs luminaries and others during testimony to the Department of Justice. This involved being less than truthful in responding to questions put to them by Congress while under oath. Basically lying to our government about actions they took contributing to the near collapse of the global banking system and jump-starting the great recession.
Now it strikes me that stuff like this - looting pension funds, fraudulently betraying their own customers, shorting their own products while at the same time peddling them to institutions - is of slightly greater importance than the Barry Bonds perjury and obstruction case. That recent fiasco soon to be followed by the Roger Clemens circus.
Keep in mind that Senate committees cannot bring charges themselves. All they can do turn over findings with their recommendation to the DOJ for action. The DOJ then decides whether to proceed.
Now the DOJ has the benefit of mountains of information, along with findings of fact. These findings of fact are just as the term says it is. A group of qualified individuals assigned a task allowing for sworn testimony determined certain facts based on overwhelming evidence leading to their conclusions. Essentially, they did the legwork to present a compelling argument for appropriate action. They tied it up in a neat bow - saving a lot of work for government prosecutors. The basis of a credible case handed over on a silver platter.
Now we will see for whom the Department of Justice actually works. If they bury this referral or sloppily and lazily decide not to go forward - then it IS EITHER sloppiness and laziness OR pure flat-out corruption. By not proceeding with charges, the DOJ would effectively be saying that the findings of fact by a Senate Committee were unjustified.
They better be very careful here. Many, many citizens watched this testimony. Observed the misinformation and obfuscation first hand. It will be very difficult and unwise for the DOJ to tell these same citizens that they didn't see what they saw.
If the citizenry then watches the DOJ go forward with another professional baseball steroid perjury/obstruction case- without pursuing the banker fraud, conspiracy and perjury that has so impacted all of us - then they will have announced the "state of their agency". They will have announced that they see themselves as an outfit that should go after players in a professional sport that half the country or more doesn't give a crap about in the first place. They will further announce themselves as a body that doesn't give a crap about the most important matters in the lives of 98% of the population. Whether because they have been bought out by the elite or lack the drive to proceed is not relevant. The fact would be that they should just get in line behind the Fed and Treasury as confirmed weapons of mass financial destruction.
That would constitute a finding of fact by the public - and one very well supported by the evidence.
Now it strikes me that stuff like this - looting pension funds, fraudulently betraying their own customers, shorting their own products while at the same time peddling them to institutions - is of slightly greater importance than the Barry Bonds perjury and obstruction case. That recent fiasco soon to be followed by the Roger Clemens circus.
Keep in mind that Senate committees cannot bring charges themselves. All they can do turn over findings with their recommendation to the DOJ for action. The DOJ then decides whether to proceed.
Now the DOJ has the benefit of mountains of information, along with findings of fact. These findings of fact are just as the term says it is. A group of qualified individuals assigned a task allowing for sworn testimony determined certain facts based on overwhelming evidence leading to their conclusions. Essentially, they did the legwork to present a compelling argument for appropriate action. They tied it up in a neat bow - saving a lot of work for government prosecutors. The basis of a credible case handed over on a silver platter.
Now we will see for whom the Department of Justice actually works. If they bury this referral or sloppily and lazily decide not to go forward - then it IS EITHER sloppiness and laziness OR pure flat-out corruption. By not proceeding with charges, the DOJ would effectively be saying that the findings of fact by a Senate Committee were unjustified.
They better be very careful here. Many, many citizens watched this testimony. Observed the misinformation and obfuscation first hand. It will be very difficult and unwise for the DOJ to tell these same citizens that they didn't see what they saw.
If the citizenry then watches the DOJ go forward with another professional baseball steroid perjury/obstruction case- without pursuing the banker fraud, conspiracy and perjury that has so impacted all of us - then they will have announced the "state of their agency". They will have announced that they see themselves as an outfit that should go after players in a professional sport that half the country or more doesn't give a crap about in the first place. They will further announce themselves as a body that doesn't give a crap about the most important matters in the lives of 98% of the population. Whether because they have been bought out by the elite or lack the drive to proceed is not relevant. The fact would be that they should just get in line behind the Fed and Treasury as confirmed weapons of mass financial destruction.
That would constitute a finding of fact by the public - and one very well supported by the evidence.
Tuesday, April 12, 2011
The return of MANIFEST DESTINY
Manifest destiny was a term from the 1800s mainly concerning the right and duty of Anglo-Saxons in America to do whatever it took to foist their values on the North American continent. Those "in the way" of such progress - such as Native Americans and others living in harmony before European colonization - were systematically eliminated. A series of broken treaties, land confiscation, removal of rights, removal of property, removal of sources of nourishment (read: buffaloes) and demolishment of the land itself were the subject of great celebration as America established its new general borders. Any attempt by native Americans to preserve what once was theirs was met with overwhelming force. Completely crushed.
The typical American has now been placed in the role of the Plains Indian. Manifest Destiny has returned - but it is no longer in the form of geological expansion. Rather it is the ever expanding concentration of power and political influence afforded to the Big Banks and Wall Street. What remains of the middle class and 98% of Americans is in the process of being wiped out - annihilated.
Any attempt we might make to also preserve what was once ours is similar folly. Our land is run by Ben Bernanke, Timothy Geithner and all the foul specimens that pathologically press their needs on them like maggots infesting lobster remains on a ninety degree summer day. In terms of true finance, there is no difference between temporary occupants in our supposed two-party democratic system. Many of the unresolved problems germinated under the Clinton administration to later be exacerbated by the dunce George W. Bush. Both parties bear responsibility for the mess, so what's the difference? Presidents and Congress are clowns compared to the banking system, the military industrial complex, multi-national corporations, the health industry and the insurance industry. Buffoons .
Consider the appearance of the Big Bank execs at Congressional hearings. They merely allowed these pawns the opportunity to get their sound-bites in, while acting contrite and promoting their "what's good for the banks is good for America" spiel. We needed them to be made healthy for America to progress. Without them, our country simply could not function - it was a patriotic necessity. How could they have been expected to know that a financial emergency was coming? What would you give for chance to to trade a few hours of somewhat uncomfortable testimony in return for access to billions upon billions of almost free money in return for nebulous toxic assets? Especially when your testimony was the equivalent of moral perjury? (BTW, did you notice any minority or female representation in that rather august group of bankers? They are not beholden to the type of hiring and promotion criteria the rest of us deal with under law and basic social responsibility).
So Manifest Destiny has returned in a big way for 2% of our population. Instead of calvary troops slaughtering the former inhabinants or bringing new diseases to those without built up immunity, the elite have solidified the union of banks and state. Mere physical force pails in comparison. And we are powerless to intervene with two inept parties themselves led by members of the top 2%. We can't act against a federal reserve chairman and treasury secretary controlled by the financial elite in order to faithfully promote their interests against ours.
The native Americans who tried to withstand Manifest Destiny through the indian wars had it right. They simply never had a chance due to their drastically declining population. We have no such barrier to success. Our population out-matches the enemy by about 98%. What is our excuse? The concept of Manifest Destiny has been discredited with the passage of time. How can 2% of our population still successfully employ this arcane notion at the expense of the rest of us? We need Sitting Bull - not Obama and the rest of the elected enablers. Crazy Horse wasn't crazy - he just did the passionately honorable thing.
The typical American has now been placed in the role of the Plains Indian. Manifest Destiny has returned - but it is no longer in the form of geological expansion. Rather it is the ever expanding concentration of power and political influence afforded to the Big Banks and Wall Street. What remains of the middle class and 98% of Americans is in the process of being wiped out - annihilated.
Any attempt we might make to also preserve what was once ours is similar folly. Our land is run by Ben Bernanke, Timothy Geithner and all the foul specimens that pathologically press their needs on them like maggots infesting lobster remains on a ninety degree summer day. In terms of true finance, there is no difference between temporary occupants in our supposed two-party democratic system. Many of the unresolved problems germinated under the Clinton administration to later be exacerbated by the dunce George W. Bush. Both parties bear responsibility for the mess, so what's the difference? Presidents and Congress are clowns compared to the banking system, the military industrial complex, multi-national corporations, the health industry and the insurance industry. Buffoons .
Consider the appearance of the Big Bank execs at Congressional hearings. They merely allowed these pawns the opportunity to get their sound-bites in, while acting contrite and promoting their "what's good for the banks is good for America" spiel. We needed them to be made healthy for America to progress. Without them, our country simply could not function - it was a patriotic necessity. How could they have been expected to know that a financial emergency was coming? What would you give for chance to to trade a few hours of somewhat uncomfortable testimony in return for access to billions upon billions of almost free money in return for nebulous toxic assets? Especially when your testimony was the equivalent of moral perjury? (BTW, did you notice any minority or female representation in that rather august group of bankers? They are not beholden to the type of hiring and promotion criteria the rest of us deal with under law and basic social responsibility).
So Manifest Destiny has returned in a big way for 2% of our population. Instead of calvary troops slaughtering the former inhabinants or bringing new diseases to those without built up immunity, the elite have solidified the union of banks and state. Mere physical force pails in comparison. And we are powerless to intervene with two inept parties themselves led by members of the top 2%. We can't act against a federal reserve chairman and treasury secretary controlled by the financial elite in order to faithfully promote their interests against ours.
The native Americans who tried to withstand Manifest Destiny through the indian wars had it right. They simply never had a chance due to their drastically declining population. We have no such barrier to success. Our population out-matches the enemy by about 98%. What is our excuse? The concept of Manifest Destiny has been discredited with the passage of time. How can 2% of our population still successfully employ this arcane notion at the expense of the rest of us? We need Sitting Bull - not Obama and the rest of the elected enablers. Crazy Horse wasn't crazy - he just did the passionately honorable thing.
Wednesday, April 6, 2011
Imaginary Conversation
Yesterday, I had an imaginary conversation with a learning disabled tenth grade student.
The topic was what Congress and the president could do to address the budget deficit.
The exchange transpired as shown below:
Me: What do you consider to be more important - increasing revenues or enacting major cuts in programs and funding directed towards the middle and lower class?
Student: Obviously, increasing revenues since by far most of our spending is built-in and not discretionary.
Me: What do you believe might have been some missteps in this area?
Student: Well, one would have to be retarded not to have ended the temporary tax cuts for the wealthy. My parents both voted for Obama mainly on that promise. It seems to me that these people missed out on the great recession they helped cause. They should be able to participate like everyone else. To then see the Social Security payroll tax cut from 6.2% to 4.2% when there is talk of a funding shortage coming sounds pretty stupid. And the wealthy also benefit from this on the first dinky $106,800 they make. Also it seems pretty dumb to me that GE, Exxon and many other huge companies pay no corporate income tax when they make billions and also get all kinds of government contracts.
Me: But economists say that the wealthy contribute to economic growth, that Social Security lost revenues will be reimbursed by the General Fund and the avoiding of taxes by these corporations is perfectly legal under our tax code.
Student: I don't see really rich people doing anything but shoveling money to hedge fund managers, speculating, collecting dividends from state supported banks and companies who layoff workers & expand overseas to increase profits, giving blood money to candidates and buying foreign made luxury stuff. I don't see how the General Fund can reimburse SS without printing new money since we are already operating with a huge deficit. I don't understand why these corporate tax loopholes weren't closed years ago.
Me: What do you think about hedge fund managers being taxed on the basis of capital gains rather than earnings?
Student: Anybody would have to be an idiot not to realize that this is how hedge fund managers make their living so the earnings must be counted as income. And doesn't just a handful of them make billions of dollars for potential income taxes? Don't they do work for this money?
Me: You sound fairly intelligent to me - how come you are classified as learning disabled?
Student: I took "no child left behind" tests and didn't do so well. I think that resulted from the fact that what they were analyzing on those test had nothing to do with anything important in today's world. They sure spent a lot of money on it, though - back when we had money.
It doesn't make much difference now anyway. My guidance counselor told me that special education funding is being cut at our school due to some kind of budget crisis our district is facing.
The topic was what Congress and the president could do to address the budget deficit.
The exchange transpired as shown below:
Me: What do you consider to be more important - increasing revenues or enacting major cuts in programs and funding directed towards the middle and lower class?
Student: Obviously, increasing revenues since by far most of our spending is built-in and not discretionary.
Me: What do you believe might have been some missteps in this area?
Student: Well, one would have to be retarded not to have ended the temporary tax cuts for the wealthy. My parents both voted for Obama mainly on that promise. It seems to me that these people missed out on the great recession they helped cause. They should be able to participate like everyone else. To then see the Social Security payroll tax cut from 6.2% to 4.2% when there is talk of a funding shortage coming sounds pretty stupid. And the wealthy also benefit from this on the first dinky $106,800 they make. Also it seems pretty dumb to me that GE, Exxon and many other huge companies pay no corporate income tax when they make billions and also get all kinds of government contracts.
Me: But economists say that the wealthy contribute to economic growth, that Social Security lost revenues will be reimbursed by the General Fund and the avoiding of taxes by these corporations is perfectly legal under our tax code.
Student: I don't see really rich people doing anything but shoveling money to hedge fund managers, speculating, collecting dividends from state supported banks and companies who layoff workers & expand overseas to increase profits, giving blood money to candidates and buying foreign made luxury stuff. I don't see how the General Fund can reimburse SS without printing new money since we are already operating with a huge deficit. I don't understand why these corporate tax loopholes weren't closed years ago.
Me: What do you think about hedge fund managers being taxed on the basis of capital gains rather than earnings?
Student: Anybody would have to be an idiot not to realize that this is how hedge fund managers make their living so the earnings must be counted as income. And doesn't just a handful of them make billions of dollars for potential income taxes? Don't they do work for this money?
Me: You sound fairly intelligent to me - how come you are classified as learning disabled?
Student: I took "no child left behind" tests and didn't do so well. I think that resulted from the fact that what they were analyzing on those test had nothing to do with anything important in today's world. They sure spent a lot of money on it, though - back when we had money.
It doesn't make much difference now anyway. My guidance counselor told me that special education funding is being cut at our school due to some kind of budget crisis our district is facing.
Saturday, April 2, 2011
SS & the Blankfein, Dimon Households
I dare anyone to disprove my assumption that the Lloyd Blankfein and Jamie Dimon households are basically one-income families.
I'm too disgusted to waste any effort to determine what Dimon earns, but we now know that Goldman Sach's Blankfein just got a raise to $19 million.
At the risk of being politically incorrect - I bet Judy and Laura's days revolve around their "fake caring" charities for tax writeoffs, hair styling appointments, cocktail party planning, social engagement prep and confirming reservations for state dinners (actually, they have their administrative secretaries handle that). We already heard that such ladies most certainly can't be expected to (gasp) wait in line for three minutes at a charity event behind mere ruffians who only contributed half as much to the cause.
But wait. Suppose you are a two-income household who busted ass to earn $106,800 between two wage earners. You'll never guess that you "dual strivers" will be paying a combined $8972 in Social Security taxes, while the Dimon and Blankfein households only pay $4486 each.
Hey man - why toil from 8am-5pm every weekday grabbing whatever overtime you can get.
You'll be a lot better off performing "God's Work" at whatever location you prefer to be at since such "work" is subject to no physical confines. Heck - you could be anywhere surfing porn while making monumental decisions backed by the full faith and credit of the United States government if it blows up in your face. ( I figure if SEC staff can surf porn then Wall Street executives should have the ability to do so as well).
Just remember all this lunacy when you hear a moronic congressman or senator mention the Social Security fund crisis.
I'm too disgusted to waste any effort to determine what Dimon earns, but we now know that Goldman Sach's Blankfein just got a raise to $19 million.
At the risk of being politically incorrect - I bet Judy and Laura's days revolve around their "fake caring" charities for tax writeoffs, hair styling appointments, cocktail party planning, social engagement prep and confirming reservations for state dinners (actually, they have their administrative secretaries handle that). We already heard that such ladies most certainly can't be expected to (gasp) wait in line for three minutes at a charity event behind mere ruffians who only contributed half as much to the cause.
But wait. Suppose you are a two-income household who busted ass to earn $106,800 between two wage earners. You'll never guess that you "dual strivers" will be paying a combined $8972 in Social Security taxes, while the Dimon and Blankfein households only pay $4486 each.
Hey man - why toil from 8am-5pm every weekday grabbing whatever overtime you can get.
You'll be a lot better off performing "God's Work" at whatever location you prefer to be at since such "work" is subject to no physical confines. Heck - you could be anywhere surfing porn while making monumental decisions backed by the full faith and credit of the United States government if it blows up in your face. ( I figure if SEC staff can surf porn then Wall Street executives should have the ability to do so as well).
Just remember all this lunacy when you hear a moronic congressman or senator mention the Social Security fund crisis.
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