President Bush spends $222,000 on Bathroom Renovation, President Obama adds $5.3 Trillion to the Federal Debt

Posted by PITHOCRATES - January 20th, 2013

Week in Review

President Obama added approximately $5,294,450,000,000 to the federal debt in four years.  While President George W. Bush added $2,660,250,000,000 in eight years.  So President Obama is clearly outspending President Bush.  Even though the Interior Department under George W. Bush spent $222,000 to renovate a 100-square-foot bathroom (see Interior Department’s 2007 bathroom renovation cost $222,000 by Stephanie Condon posted 1/16/2013 on CBS News).

In 2007, the Interior Department wasn’t skimping on its own interior. The department spent $222,000 that year to renovate the bathroom in the interior secretary’s private office.

Under the direction of President George W. Bush’s Interior secretary, Dirk Kempthorne, the department made a number of lavish renovations to the 100-square-foot bathroom: New wall panels cost more than $1,500, while custom cabinetry was installed for $26,000. The bathroom was outfitted with a $689 faucet, a $65 vintage tissue holder and even a $3,500 refrigerator…

The Interior Department said the renovations — which were approved and contracted by the General Services Administration — were needed because of water leaks in the bathroom. The GSA told CBSNews.com, “These renovations began in 2007, which predates the current leadership at both the GSA and the Department of Interior. Under the current leadership, we have greater oversight to ensure the responsible use of taxpayer dollars. The renovations were part of a larger restoration project at the historic facility.”

Did the GSA spokesperson say this with a straight face?  That they have greater oversight under the current leadership?  Right.  Pull the other one.

The near trillion-dollar stimulus package was going to explode all that shovel-ready work.  But it actually went to shore up public sector pension and health care plans.  Investments in clean renewable energy didn’t produce any new jobs of the future but instead repaid campaign bundlers.  The auto bailout didn’t help the auto companies become more competitive.  Which was their ultimate problem.  And why they couldn’t fund their pension and health care liabilities.

The bailout did not make GM or Chrysler more competitive.  It just injected cash into the UAW pension and health care plans.  And the only reason why they’re profitable now is because they aren’t paying any federal income taxes.  Their stock price has even fallen.  For as the government sells their GM stock they’re selling it at a loss.  So the taxpayer is collecting no taxes from GM.  And they are not going to get all their money back from the bailout.  And this is greater oversight to ensure the responsible use of taxpayer dollars?

Gee, I’d hate to see irresponsible oversight.

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The Solution to the Bungling Bureaucracy that gave us Solyndra is to add more Bureaucracy

Posted by PITHOCRATES - February 11th, 2012

Week in Review

Big Government has failed.  So to fix Big Government those in government say the solution is to make government bigger (see Energy Loan Oversight Is Needed, Audit Finds by JOHN M. BRODER posted 2/10/2012 on The New York Times).

The Department of Energy’s loan guarantee program for alternative energy projects, which produced the ill-fated loan to the solar panel maker Solyndra, needs more rigorous financial oversight and stricter performance standards for recipients to reduce the chance of future defaults, according to an audit conducted by the White House and released Friday.

So the way to fix this bureaucratic mess is to add more bureaucracy.  Grow the size of government.  Spend more taxpayer money to provide more oversight on worthless taxpayer-financed investments.  Interesting.  Only in government.  Where they fix failures by doing even more of the same.

But it doesn’t end with Solyndra.

Solyndra and Beacon are not the only loan recipients to find themselves in trouble. Fisker Automotive, an electric car maker in Irvine, Calif., has missed some milestones that were written into its loan agreement, so the Energy Department has cut off credit. As a result, Fisker has stopped work on the conversion of an old General Motors factory in Wilmington, Del., that is supposed to produce an electric sedan, and laid off more than 60 employees and contractors.

Spokesmen for Fisker and the Energy Department both said that the terms of the loan were confidential and they would not say precisely what milestones were missed, but Roger Ormisher, a spokesman for the company, said, “We admitted very openly we were late to market with the Karma,” the company’s $102,000 sporty sedan. Fifteen hundred have been built and “a few hundred” sold, he said. Progress was slowed by a safety recall.

It wasn’t just an electric sedan.  But a sporty sedan.  And a fairly luxurious one at that coming in at $102,000.  But will people buy it?  Probably not.  You see, the biggest problem electric cars have that prevents the masses from buying them is range.  They just don’t go far on a single charge.  Especially if you use the headlights or heater.  And you can’t recharge them quickly.  Which means if you run out of charge you can’t have a friend drive out a gas can full of charge to pour into the tank.  You run out of charge on the road and you’re paying for a tow home. 

And making any car ‘sporty’ just compounds the problem.  Because if you’re accelerating quickly you drain the battery faster.  And this is the car the government is subsidizing.  Of course this is going to be another Solyndra.  No one’s going to buy this car.  Unless the government subsidizes the bejesus out of it to bring that $102,000 down to something closer to $15,000.  Where people may put up with the inconvenience of driving nothing but one short trip a day.  At least, until they get their electric bill.  Because electricity isn’t free.  And if you’re charging up a battery than can make are car zoom sportily along, it’s going to have some big batteries.  And long charge times.  Making big electric bills.

If they are going to add oversight they need to add it at the level where they decide to back these losers.  Before the money goes out.  Or, better yet, they should just stop investing in these losers.  If a company can’t get investment capital there’s a reason.  They don’t have a good idea.  At least, not one anyone will risk their own money on.

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FUNDAMENTAL TRUTH # 50: “What do the great entrepreneurs have in common with politicians? Not a whole hell of a lot.” -Old Pithy

Posted by PITHOCRATES - January 25th, 2011

A Mathematician, an Engineer and a Beautiful Woman

Stop me if you heard this one.  A mathematician and an engineer are at one end of a long room.  At the other end is a bed.  On the bed is a beautiful, naked woman.  She also happens to be a brainiac.  And someone who enjoys a bit of fun.  If you know what I mean.

She offers to get intimate with the guy who can solve this riddle.   Cross the room in a series of moves.  Each move shall be one half of the distance between them and her.  Be the first to do that and reach her and she’ll make all of your dreams come true.

Well, the mathematician sits down with paper and pencil and starts scribbling.  He proves mathematically that is impossible to ever reach the beautiful woman.  Because by moving half of the distance each time, there will always be a remaining distance to cover.  Therefore, he concludes, it’s impossible.  He looks up to tell her this.  And when he does he sees the engineer lying up in bed with her.  Smoking a cigarette.

Entrepreneurs Like to Think outside the Box

So what happened?  Well, while being theoretically impossible to reach her, the engineer could get close enough for a bit of fun.  And did.  It’s an old joke.  With many variations.  And depending on who’s telling it the loser is sometimes a physicist.  Or even the engineer.  Of course, some may say it’s the beautiful woman that losers in all cases.  Because smoking hot women don’t hang out with math and engineering geeks.  Until they get rich enough to buy them things, that is.  But I digress.

Entrepreneurs and politicians are a lot like mathematicians and engineers.  At least in this joke (and I apologize to mathematicians everywhere who are offended.  But you shouldn’t feel bad.  I’m sure if you could have been engineers you would have).  Nothing is ever easy for a politician.  Like the mathematician, they feel that they must over analyze everything.  Get a lot of bureaucrats involved. Layers and layers of oversight and control.  Hoops to jump through.  Exhaust every possibility to get to the ‘best’ solution.  Even if it takes weeks.  Months.  Years.  Time is never of the essence.  They have forever.  And they take forever.  No matter the costs.

Entrepreneurs don’t work this way.  They have an idea.  And want to act.  They hate waiting.  Time is money.  They hate bureaucracy.  Because time is money.  And they have an easier way to determine what the best solution is.  Sales.  Those who have the greatest sales have the best solution.  Because thus speaks the market.  So they keep thinking.  Keep creating.  Keep coming up with good ideas.  They see what the market is demanding.  Or what it will demand.  Once they show that market the wonderful new thing they’ve created.  Sales proved the Sony Walkman a success.  And sales proved the Apple iPod a success.  Why?  Because Sony and Apple are a couple of companies that like to think outside the box.  And create things people aren’t even demanding yet.  And you gotta admit that that’s some pretty damn good thinking.

Politicians Fear what’s Outside the Box

Politicians, on the other hand, fear what’s outside the box.  They want to stay inside the box.  They like it there.  It’s snug.  Familiar.  Dark.  Orderly.  No surprises.  No new things to have to think about.  Or worry about.  Like all that uncertainty in an uncontrolled free market.  Yeech.  They don’t like that.  Or understand it. For when it comes to the economy, these progressives are ‘conservative’.  They want to build on the governmental bureaucracy of the past.  The bureaucracy they know.  And love.  It may not have worked.  But so what?  It’s just so cozy.  And makes a [deleted expletive]-load of federal jobs.

Of course, this expanding bureaucracy doesn’t give us anything new.  Anything innovative.  Anything that we’re yearning for.  Or anything we will yearn for once we learn about that next great thing.  Because they don’t create anything.  Other than obstacles to those who do.  Once someone comes up with an idea, though, they’ll then want to take that idea and over think it.  Manage it.  Regulate it.  Tax it.  Because an entrepreneur may come up with a great idea.  But a politician knows best how to use that idea.  Or so they believe.

Of course, when you think of the great inventions, you never think of a politician.  To prove this, tell me who you think of when I mention some famous inventions.  The telephone?  (Alexander Graham Bell).  AC power distribution?  (Nikola Tesla).  An affordable automobile?  (Henry Ford).  The light bulb?  (Thomas Edison).  An efficient steam engine?  (James Watt).  Notice anything about all of these inventors?  That’s right.  They don’t have a ‘Senator’ or ‘Congress Person’ in front of their name.  But Senators and Congress people have been regulating and taxing these great inventions ever since.

Can’t see the Nude Woman on the Bed

An entrepreneur, like an engineer, doesn’t get lost in the theoretical.  They see possibilities.  And they act.  Politicians, like mathematicians, like to crunch numbers.  Prove things can’t be done.  And then call for blue ribbon panels or commissions to further analyze things.  Entrepreneurs are positive, can-do people.  While politicians are negative, can’t-do people.  They can’t see the forest for the trees.  Or the nude woman on the bed.

Politicians can’t not interfere with people.  An entrepreneur can’t stand being interfered with.  He or she is too busy creating stuff.  They’re not sitting around waiting for something to happen.  They’re leading the way.  While the politicians are nipping at their heels.  Trying to catch up with them.  Just so they can slow them down.

Our future is like the nude woman on the bed.  The entrepreneurs know how to get to her.  And will.  If left alone to do what they do best.  To think.  And create great things.  Make the world a better place.  But the politicians haven’t a clue.  They covet the nude woman.  But they can’t get to her.  Because she’s somewhere outside the box.  Smart.  Complex.  Something new.  Waiting to be discovered.  And when her riddle is solved, it won’t be a politician smoking a cigarette in bed with her.  It’ll be an entrepreneur.

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FUNDAMENTAL TRUTH #28: “Politicians love failure because no one ever asked government to fix something that was working.” -Old Pithy

Posted by PITHOCRATES - August 24th, 2010

GOVERNMENT FIXES PROBLEMS.  Or so they say.  And the people think.  When something isn’t right in the country, the people demand that government do something about it.  And politicians are more than happy to oblige.  It strokes their egos.  Increases their budgets.  Their staffs.  And they get to do what they like best.  Tell others what to do.  Well, that, and spend money.

Politicians are happiest when government grows.  Because when it does, there’s more stuff to do.  More people to manage.  Bigger offices to move into.  More people to hire.  And the more they hire, the more people are indebted to them.  Who love them.  Respect them.  Are in awe of them.  Which inflates their egos even more.  As if that was even possible.  And, of course, there’s more money to spend. 

As government grows, so does their job security.  I mean, there may come the day that the good people may not reelect them.  As devastating as that may be, they can be comforted in the fact that they will leave Washington far richer than they were upon entering Washington.  And there’ll always be a place for them in an ever expanding government.  A cabinet position.  An agency position.  Or, perhaps, they’ll be named a czar.  Of something.  In charge of a policy issue.  Away from the oversight powers of Congress.  Anything is possible.  As long as government grows.  And there is more money to spend.

And just why is that?  Why does government continue to grow?  Simple.  They don’t fix problems.  They’re always ‘fixing’ problems.  But they’re never fixed.  They’re always a work in progress.  Because a fixed problem doesn’t require their services any longer.

DON’T THINK SO?  Suppose the government gives you a federal job.  An important one.  You’re in charge of the Office of Getting People to Happily Accept the Banning of Smoking in Public Places.  They give you a big office.  A staff.  A budget.  And a title.  You feel pretty good.  Important.  You diligently go about your work.  You take polls.  You analyze data.  You place public service announcements.  You intensify your polling before and after local laws are implemented banning smoking in public places. 

You analyze your data.  You correlate satisfaction with dissatisfaction.  Pacification with irritability.  Your numbers look good.  As more and more localities ban smoking from most public spaces the more your numbers show that the satisfaction/dissatisfaction ratio is trending favorably.  The trending is flatter with pacification/irritability but the trending is still favorable.  You conclude that these new laws come in, on average, at 9.875.  And that’s very good on the scale you created to measure overall effectiveness and acceptance of new laws to influence social behavior.   You happily report your findings to your superior.

“What are you,” your superior asks, “stupid?  Trying to put yourself out of a job?  Are you trying to cut my budget?  Because that’s exactly what’s going to happen if you turn in a report like this.  Now here’s what you’re going to do.  You’re going to report that your findings indicate some improvements in some select demographics.  But overall there is still much work to do.  Then write up a proposal for additional work required and throw in a budget that increases your current budget by 12%.  For starters.  Then I’ll critique your findings and find your funding request insufficient because of a mistake you made in your analysis.  Have it on my desk by the end of the week.”

Sound ridiculous?  That’s probably because it is.  And probably all too true.  I mean, how many federal programs do politicians shut down because they were successful in achieving their objective?  I think few.  If any.  Because no one wants to put themselves out of a job.  Especially a federal job.  Because there’s no job like a federal job.  At least, not in the private sector.

IN THE PRIVATE sector, your work has to have value.  When people are voluntarily paying for goods or services, you can’t have fat payrolls and fat budgets to produce goods and services no one wants.  You can only do that when government pays.  And by government I mean you and me.  With our taxes.  Which we have little choice but to pay.  For we are forced to under penalty of law.  Which can be pretty persuasive in making you pay for stuff you don’t want.  For we wouldn’t normally give away our hard-earned pay for the ridiculous wastes of resources known as government work.  To make the lives of federal workers better than ours.  And speaking of federal workers, what’s that joke?  Question:  What is federal work?  Answer:  Work for the unemployable.  There’s a lot of truth in that.  For a lot of these people couldn’t make it in the private sector.  And if they had to, they would only do so with the utmost bitter resentment.  They’d resent the longer hours.  The huge cut in pay.  The huge cut in benefits.  And the accountability.

You see, in the private sector, failure has consequences.  People get fired.  If a business is losing money because of silly projects they’re pursuing, the board of directors will fire the corporate officers.  If it’s a small business, the owner may lose his or her life savings.  And their house (which is often mortgaged up to the hilt to support their business).  There will be change after failure.  And it will be painful to many.  Unfeeling.  Cold.  But necessary.  But it’s different in government. 

When politicians fail, they reward themselves.  When their policies fail, the politicians simply say they need more time to make those policies work.  And more money.  That’s always the answer.  And they get away with it.  More money.  Keep throwing money at the problem.  No matter what a train wreck their programs turn out to be.  Or what the unintended consequences are.

POLITICIANS LIKE TO tinker.  Often in things they shouldn’t.  Because when they do, bad things often happen.  Those unintended consequences.  For when it comes down to it, they’re not very smart.  They could have graduated from their Ivy League schools at the top of their class, but they often know squat about the things they’re meddling in.  Most of them are lawyers.  And what does a lawyer know about economics?  Foreign policy?  National security?  Bupkis.  But it never stops them. 

And it doesn’t even matter.  Because their motives were honorable.  They acted with the best of intentions.  At least, that’s what they say.  As do their supporters.  And when everything goes to hell in a handbasket, they don’t mind.  Just more problems for government to fix.  More programs.  More staff.  And more money to spend.

Of course, we ultimately pay the price for their actions.  Whether it’s recession, depression or a more dangerous world to live in.  Which is often the case.  More times than not.

EVER WONDER WHY everything is a crisis?  Because a crisis needs urgent action.  By politicians in Washington.  And that urgent action is typically vast new government programs with an exploding federal bureaucracy.  Along with explosive federal spending.  And because it’s a crisis, there’s no time to lose.  If we don’t take immediate action the consequences could be dire.  There’s no time for debate.  For opposition.  To read a bill.  No.  We have to act and we have to act NOW.  Before this crisis gets any worse.

And when things do get worse after we take all that urgent action, you know what they’ll say?  That they were wrong?  Yeah, right.  In some fantasy world maybe.  No.  Instead, they’ll say just imagine how bad things would have been if they didn’t act like they did.  That we should be thankful things are only as bad as they are, for they could have been a whole lot worse if government didn’t act.  Why, they’ll be patting themselves on the back.  While you suffer more.

Hard to fight that logic.  I mean, they can say anything.  If their action takes unemployment to record levels, they can say unemployment would have been twice as high if they didn’t do what they did.  Twice as high would be worse.  But how do they know it would have been twice as high?  How can they prove it?  Well, they don’t have to.  Because you can’t disprove it.  And those who gamble know that a tie goes to the house.  So they’re right.  Because you can’t prove otherwise.  So they act accordingly.  And their supporters go along.  And the answer to the new problems that are worse than the original problems?  You guessed it.  More of the same.  More government programs.  More government spending.  At least, that’s what the historical record shows.

POLITICIANS LOVE FAILURE.  They thrive on it.  It gives them life.  Success, on the other hand, destroys them.  Removes their raison d’être.  Their reason for being.  A prospering nation, after all, doesn’t need government to fix anything.  And that’s no good.  Especially if that’s the business you’re in.  Fixing things.  Fixers need to fix.  But it needs to remain a work in progress.  So there’s still fixing to do.  Always.  And forever.   

And they’ll never let a good crisis go to waste.

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