N-E-W-T Ascending

Now it’s time for Newt. Just a few months ago, legitimate pundits and illegitimate people like me had written off Newt Gingrich as the Republican nomination for the President. His staff quit. He was broke. Press generated pseudo-scandals were swirling about him. No he is for all intents and purposes the front runner. He has jumped to the front of the pack in national polls, and is even money in the Iowa caucuses and New Hampshire primary.

Newt Gingrich is the intellectual guardian of the modern conservative movement. He is a brilliant man, and it drives the liberal establishment crazy. Back when he was lost in the pack as his staff deserted him for Rick Perry, Newt said at the end of the day it would be ideas that would win out. He dutifully showed up for all of the debates, and put in stellar performance after stellar performance.  He was right.

Newt has always been my personal favorite, but I honestly felt that he couldn’t beat Obama. Not because he isn’t talented, but because the main stream press would obliterate him. They don’t like him because he is able to tear liberal philosophy to shreds. In simple terms he exposes the fallacy of a nanny state government, and why it hasn’t worked other places, and why it won’t work here. He expresses himself in clear and concise terms, and refuses to take any guff from any of the smart ass reporters that try to give it to him. He does what Ronald Reagan did…maybe not as good…but he’s close.

Gingrich says that this is the most important election in the United States since 1860. I agree. Ironically, like Lincoln, it is his debating skills that are clearing the path to his nomination. I wondered how he could beat Obama flying into the headwind of a vindictive cut throat main stream press. He answered the question himself today. He said tell Obama I want to debate him, and he can bring his teleprompter. If Gingrich is standing at the debate podium with Obama next fall, the emperor will truly have no clothes.

If Newt is nominated, can he beat Obama? I don’t know. Pundits galore are still singing Romney’s praises, which should be a red flag to conservatives. Romney is trying to win the nomination with a 25% solution as the other 75% of the party look for someone other than Romney. From Bachmann to Perry to Cain… each of the candidates has had a turn at the front only to be shot down. Time will tell if the same thing will happen to Gingrich.

What Gingrich has going for him is more debates where he is a star. Then there are the primaries. If he does well in Iowa and New Hampshire coming in at least second in each of those states, then all bets are off. Gingrich may have a shot at the whole enchilada. More likely, the nomination will be thrown into flux and the Republicans will host a brokered convention with Romney having maybe 35% of the delegates and the rest lined up behind the conservative candidates opposing Romney. That opens the way for a Chris Christie, a Rudy Giuliani, and dare I say it…Jeb Bush.

Meanwhile, I hope that America listens to what Gingrich has to say. He is proven politician with the skill to get things done, and the ideological moxie to go with it. His voice is the voice that can save America.

Penn State and College Football

The Penn State sex abuse debacle keeps getting worse. Like a Shakespearean tragedy, the swiftness of the demise of Joe Paterno football and the magical Penn State story is staggering. While things looked great on the surface, underneath the veneer it was rotting away with a secret few could comprehend, or chose not to.

We all operate within the box of our life experience which sets the parameters by which we react to things. If events don’t fit in the box of understanding and experience, folks tend to ignore them because to them it is irrelevant or unbelievable. It couldn’t happen here. Only when the truth hits them on the head like a hammer do they experience an “ah-ha” moment, and the gravity of the situation finally breaks through.

Knowledge of this event had been festering since 1998, at least on current available information. Jerry Sandusky retiring from Penn State as he was investigated by a grand jury is too coincidental for university officials and his close friend and confidant Joe Paterno NOT to have known. Even then, Sandusky was made a professor emeritus, and was allowed full access to Penn State facilities and football program. He made road trips with the team and his boys. The Drudge Report even stated he was recruiting for Penn State as late as this past year…even after new allegations arose in 2002 about which Joe Paterno had full knowledge.

The press has missed the focus. Paterno did what he was supposed to do, he notified his superiors in 2002 of the allegations of the molestation in the shower. The press is focused on the point that Paterno didn’t follow up and call the police under some sort of moral obligation. I am focused on the fact that apparently there was still some kind of ongoing relationship between Sandusky, Paterno and school even after the 2002 allegations. What were they thinking?

Then there is the suspicious disappearance of the county prosecutor…the smell of smoke and the presence of ashes in his car…his computer found at the bottom of a river with the hard drive removed. Rumors are swirling that Sandusky’s foundation was acting as a clearinghouse for pedophiles looking for boys…big money pedophiles. Could some of those people also have been big money contributors to Penn State? Murder is lurking in the background.

This is a mess. Meanwhile, the NCAA is continuing to hound Ohio State taking away 5 scholarships because an alumnus gave some football players $200.00 each for walking around money…so they could afford to buy a lousy pizza. Does the NCAA have its head in the sand?

It’s time for Congress to investigate the operation of the NCAA, and examine what has become a business as big if not bigger than the NFL. It needs to look at its tax exemptions, and set regulations as to how this entity can operate. It needs to standardize procedures for sex abuse allegations so that a situation at Penn State, which followed the letter of the law, does not happen again violating the spirit of the law. And this is important, it’s not clear whether Penn State actually violated any NCAA rules.

Big money breeds corruption. If the NCAA can’t regulate itself and the use of slave labor from football players which generates millions upon millions dollars for the schools and the NCAA itself, the government will have to. If the NCAA can't differentiate moral equivilency between tatoos and child molestation, it has to be done for it. Penn State players praying in the middle of the field before a football game for the “victims” just doesn’t cut it.

It’s time for someone to figure just what is going on here.

Defeat of Issue 2: The Canary in the Coal Mine

The defeat of Ohio’s Issue 2 should give warning to the Republican Party not to count their chickens before they hatch. If the unions were able to defeat a bill which by all calculations should have passed, they can do the same thing in next year’s presidential election. The extreme left and public employee unions play hard, they play dirty and their guns are loaded. Republicans have never been able to compete with those kinds of tactics. They better learn how if they expect to defeat Obama next year.

Issue 2 highlights the weakness of the Republican approach to politics. Senate Bill 5 which went down to defeat as Issue 2 today, should have passed. During the campaign, most polls showed Issue 2 continuously behind in the polls by as much as 22%. Yet when broken down item by item, Ohio citizens were overwhelmingly in favor of everything that was in the bill. How can an issue go down to defeat when citizens are in favor of what’s in the bill?

It’s not hard. The anti SB5 folks ran a campaign based on lies, threats, and emotion. And those in favor of SB5 ran the single worse political issue campaign I have ever seen in my life. You can’t win by rolling over resting on the false assumption the public knows what it is voting for.  Whoever was in charge of this campaign should be fired....and now!!!

Television ads were relentless from the anti Issue 2 folks showing nurses claiming you would die in the hospital corridors if Issue 2 passed. Your house would burn down with you in it if Issue 2 passed. The police would be unable to respond if Issue 2 passed. Your children would not know how to read if Issue 2 passed. Granny would be unable to buy medicine if Issue 2 passed. And all of our firefighters and police would die on the job if Issue 2 passed. Tell the lie long enough and often enough, and people will believe it. That is extreme politics’ oldest trick in the book.

Had the Republicans made half an effort to explain to the public what Issue 2 did, and broke down the components parts in a meaningful fashion, Issue 2 would have passed easily. Even after defeat, Ohioans support what is in the Senate Bill 5 when asked about each item on an individual basis.

Ohio Republicans have handed over to Barack Obama and his leftist cadre their first victory in the 2012 presidential campaign. And it was achieved by using the usual leftist playbook. Lie to the public. Play on emotion. Do it often with feeling. That is going to be the playbook for the next election.

Republicans be warned. The economic mutilation of America by the Obama administration will look like sweet cakes and sugar in the campaign. Republicans can’t assume the public will vote against Obama simply on the disastrous economy and massive debt. Expect more of the Occupy Something movement which is rooted squarely in Obama’s White House and Obama’s training. That is what he did before he became President.  He knows how to turn a sows ear into a silk purse. 

Ohio’s Issue 2 was the canary in the coal mine. Republicans should take heed.

Issue 2 - Imperfect but Necessary

Senate Bill 5 and Issue 2 have nothing to do with Ohio's budget deficit. That issue was addressed in an already passed state budget. The intent of these  initiatives is to deal with budget issues facing local government entities including school systems, townships, villages and cities. Ohio has no more bail out money.  The hope is that Issue 2 will give the local governments the tools by which to better manage local finances.

Let's start with the police and firefighters. Notwithstanding Issue 2, they are not allowed to strike in Ohio. Under the current system, they enter into collective bargaining with their local government. If no agreement can be reached, then the matter is referred to binding arbitration conducted by an outside arbiter. The arbiter then makes a decision which is binding on the parties.

The problem is the arbiters, some of whom come from as far away as California, often decide the issues based on pay scales and salaries from parts of the country where the cost of living is substantially higher than here. The only thing the arbiters DON"T take into consideration is the ability of the local government entity to pay. So when recommendations are made, the local government entity has only two choices, lay off the safety forces at the expense of the less senior employees, or start an endless cycle of property tax levies or sales tax initiatives to get the money. At the end of the day, those are regressive taxes and hurt the poor and the elderly disproportionately. That is the Draconian choice Issue 2 eliminates. It leaves the ultimate decision on wages and benefits to the local government entity.

State university employees also use an arbitration process both for faculty and non-certified unions, but they can strike. YSU is notorious for this, and the end result is ALWAYS higher tuition to pay for what are disproportionate salaries of university professors. The argument is ALWAYS they can make more money elsewhere, and they could leave their jobs for higher pay in New York City. They won't leave though, if they can get New York City salaries and live in Youngstown where the cost of living is among the lowest in the nation. Those are the sweetheart deals Issue 2 wants to eliminate by outlawing strikes by university personnel.

Issue 2 also equalizes benefits for unionized state employees to the private sector.  It requires a minimum of 10% contribution to health care, and 15% to pension.  It also attempts to eliminate the undue burden placed on local governments for cash in pension bonuses from unused sick days and vacation days.  In the private sector, it is use it or lose it.  These types of pension bonuses cost the Cincinnati $93 million this year.  This has to stop.

Secondary schools are directly targeted by Issue 2, also eliminating the right of teachers to strike. But it goes further by ending tenure and salary increases based on longevity rather than teaching ability. This is the most controversial of the provisions. Being married to a teacher, I know about nepotism and favoritism played by local school boards. The popular line for Issue 2 proponents is that the teacher of the year can be laid off in favor of someone who has been there a long time. What they don't tell you is that the teacher of the year is probably a cheerleading coach, and hiring decisions by many school systems is based on what a teacher can coach rather than what a teacher can teach. Not to mention that person who gets a bur up his/her butt and runs for school board because Mrs. Jones gave little Johnny a C in English. Guess who is going to lose her job with no recourse? This is the problem part of Issue 2. Merit pay is a good idea, but in Issue 2 it is ill conceived and not well thought out.

The Plain Dealer, the Columbus Dispatch, and the Cincinnati Enquirer have all endorsed Issue 2, stating that it has its problems, but the issues facing local governments and school systems are critical and we are better off with it that without it.

I agree. While I have major problems with the tenure/seniority for primary school teachers found therein, the balance of the provisions are necessary and timely. My wife retires at the end of next year so she will not have to deal with those seniority provisions and the huge number of lawsuits that I see stemming from the "merit pay" provisions. If what I think is going to happen does happen, teachers will be striking notwithstanding as some of these goofy school boards start to throw their weight around. The law will be adjusted accordingly as the coming abuses begin to surface.

Finally, the main reason I support Issue 2 is that it gives public employees the right to opt out of mandatory withholding of union dues from their paychecks. Union bosses and political slush funds make those involved with big business look like a walk in the park. The abuses are many and well documented. Notwithstanding what the law currently says, unions take money from those who might have a different political view, and support left wing candidates directly and indirectly, not to mention liberal issues and causes including pro-choice and pro-illegal immigrant endeavors. In addition, in Ohio, 99% of all union political contributions go to Democratic candidates, who in turn repay the union by granting excessive pay raises and benefits. It is a racket in a vicious circle.

I am going to vote YES on Issue 2 on November 8.

America's Challenge: Prosperity Through Structural Change

The economic storm clouds have been billowing and blowing around America for the past several years. Record numbers of Americans are living in poverty. Middle class Americans have lost at least $14 trillion in home equity value over the past seven years. Unemployment is rampant among those under the age of twenty five. It is tragic in the same age group within the minority community. Under employment is everywhere you look. 

At the same time, farmers are complaining that the flow of illegal immigrants has slowed to a trickle while Americans are ignoring those now vacated jobs. In addition, many skilled trade jobs are screaming for employees and they just aren't there. On a personal level, I have been looking for someone to install some indoor lighting in my house and it has been like pulling teeth trying to get anyone to come out and do it.

I have been writing for several months now that this is not your father's recession. To use the vernacular, this time it's different. While those responsible for monetary policy have lowered interest rates to almost negative numbers punishing the investment class, and those responsible for fiscal policy have looked at wasted "stimulus" spending while the national debt is at crisis levels as Europe teeters on collapse, the stuff that needs to be done is being ignored either by ignorance or design...and I suspect a good dose of both.

Once again I am raising the hue and cry that the problems with the American economy, and indeed America herself, are systemic. You can tinker with spending and printing money and interest rates all you want, it won't make it better. Unless the structural issues are addressed, we will continue to flounder in ways unknown in the country up until now.

Therein lies the appeal of Herman Cain. He has confounded the pundits with his 9-9-9 plan which even the most cursory inspection demonstrates it would be politically infeasible to implement. On the other hand, the fact that he has proposed a structural solution to a known problem, a disastrous tax code, is enough to make America sit up and take notice. No, America may not like THIS plan, but it at least it satisfies our sense that the problems lie elsewhere than spending money to hire more teachers or police...the "temporary" solution.

Structural change is needed in tax policy, energy policy, trade policy, environmental policy, and foreign policy to make this country work. We need to address social attitudes as well. Getting your hands dirty needs to be elevated to a respected way to make a living. The be all and end all of success is not a college education in liberal arts. As I told my son, a college education entitles you to nothing. It is just another tool in your box to help you make a living. In my practice, some of my wealthiest clients barely finished high school.

The job of American government is to create an environment for individual success. What needs to be done is no secret, and if done correctly, there will be screaming from both sides of the political spectrum. Yes, General Electric and IBM should be paying taxes, but so should the 47% of working Americans who don't. Yes, universal health care is a worthy goal, but suffocating American business and creating an environment where Walmart has ceased providing health care to those who need it most is inexcusable. And energy independence, the cornerstone for future American prosperity, will require silencing the environmental extremists among us while letting those who are doing the fracking know that they better not frack the water tables.

I believe that America is up to the challenge. So let's stop crying in our beer, and go do it.

Occupy Wall Street: Feeding the Mob

The Occupy Wall Street “movement” has been front and center in the media. After watching it for awhile, the only conclusion that can be reached is that it is not the grass roots spontaneous populist uprising the news dudes want to portray. Drooling news commentators like Anderson Cooper and his associates at CNN are harboring memories of the 1960’s. Oh how wonderful. Nancy Pelosi was positively orgasmic as she nominated these folks for sainthood. But they are wrong, and they know it.

Start with the premise that Barack Obama was a community organizer. If you ever wondered what a community organizer did, look at the Occupy Wall Street crowd. That’s what community organizers do. Is Barack Obama behind this thing? Maybe! Are his campaign people and Acorn crowd behind this? Probably! These guys can organize a crowd with a tweet or an email. The demonstrators will show up at the drop of a hat. All you have to do is tell them where and when.

Unfortunately, the Democratic left has a problem. In addition to Nancy Pelosi and GE’s Jeff Imelt embracing these folks, so has the Communist Party and the Nazi’s. The intolerance of the left is rearing its ugly head in some of the most anti-Semitic rhetoric I have heard in a long time. Blaming Wall Street has become equated with blaming the Jewish bankers. One employee of the Los Angeles school system got on television and said the Zionist Jews need to be run out of the country. The signs are rampant at the demonstrations.

Nancy Pelosi and Harry Reid called the Tea Party racist without one shred of evidence. They stated that they must be racist because the Tea Party wanted smaller government and a balanced budget. Now the darling of the Tea Party is Herman Cain, a conservative black entrepreneur. What is the solution to this progressive dilemma? Call Herman Cain racist. One commentator stated that racism is never stronger than when it comes from a black man. Really?

The press has ignored the racist, bigoted, and violent commentary coming out of the Occupy Wall Street folks. Beheading the bankers is my favorite. The press is also ignoring that funding for these activities is coming from every union between the AFL-CIO and the SEIU.  That's certainly not spontaneous. 

It’s called feeding the mob. It’s dangerous. Killing the Jewish bankers and businessmen is a familiar refrain…in Weimer Germany and early 20th century Russia. This is bad stuff. The press can play the populist spontaneity angle all they want, but I know intolerant leftist violent bigots when I see them.

Is it representative of all the people marching in the streets? Of course not.  Many of these folks have legitimate complaints.  Many mirror the opinions of the Tea Party.  But when the left starts to march, watch out.  Feeding the mob is dangerous.  Community Organizers may think they know how to strike a delicate balance between legitimacy and lunacy, but then again.....

Is America in Decline?

Is America really in decline? The Drudge Report posted an editorial from the British paper The Financial Times entitles America Must Learn to Manage It’s Decline. The author claims that America must come to accept its decline in the world or risk having it worse than it is. He cited the United Kingdom in 1945 in coming to terms with the demise of Pax Britannia. He also stated that Britain prospered economically once it accepted its reduced role in the world.

Well, we aren’t Britain at the end of World War II which was dealing with massive destruction of its industrial capacity, an empire torn apart by the war, economically bankrupt, and incapable of reconstructing itself let alone any other part of the world. The British Empire didn’t decline. It collapsed in the war. Just like the Habsburgs and the Austro-Hungarian Empire did at the end of World War I. War is funny that way.

The fact that this editorial appeared in the Financial Times is indicative of how the world currently views Obama’s America. He views America as being in a zero sum game. Although he says he wants America to be number one, as in all things Obama, his actions are those of a person trying to manage a shrinking economy and shrinking power. And just in case it didn’t happen by itself, he would institute policies to make sure that it does.

America will never be a second class country. We are the third largest country in the world by population (behind China and India). We are blessed with abundant natural resources although Obama and his EPA cronies are doing their best to put them out of reach. The rest of the world still comes here for our universities and educational opportunities. Although the country is broke, most of our citizens are fairly well off and we still maintain a vibrant middle class contrary to progressive rhetoric.

That doesn’t mean other countries won’t advance as they achieve economic success based on one form of capitalism or another…whether it is state capitalism in China or crony capitalism in Russia or hard working capitalism like in India. After World War II, the United States was the only game in town. No one could expect that to last.

But just because other countries are finally achieving success doesn’t diminish our relevance or importance in the world. We have first and foremost a Constitution, Rule of Law, and a stable political system. The current gridlock in Washington isn’t a sign of our weakness. It is a sign of our strength. As the saying goes, we will finally stumble upon the correct policy after all others have failed. Notwithstanding the Standard and Poor’s debt downgrade, America is the ONLY safe haven in the financial world. That is the strength of our system and of our national character.

The risk of American decline will not be found in foreign countries overtaking our hegemony. The risk is found from within. Don’t listen to Obama. Don’t be fooled by utopian promises. Unlike Obama who has preyed on people’s fears, equality in America doesn’t mean that all people should have the same…that’s communism. In America, we are created equal by God who has given us equal opportunity to pursue life, liberty and the pursuit of happiness. Our strength is in striving to give everyone an equal opportunity, equal life chances. We obviously don’t always achieve that, but we try. That is the great American quest.

America in decline? That will happen only if we choose to let it happen.