The Two Americas: The Public Sector and Those the Public Sector Screws

Posted by PITHOCRATES - November 13th, 2010

Public Sector Living it Up While We Don’t

Who’s weathering the recession with the least amount of pain?  Why, the rich, of course.  And where do the rich live?  Well, according to Newsweek, seven out ten of the richest counties can be found surrounding our nation’s capital (see You live in nation’s richest counties posted 11/12/2010 on www.wtop.com).  Coincidence?  Or is it because many of those people living around Washington DC work in Washington DC?

Meanwhile, in California, voters rolled up a newspaper and swatted their public sector unions across their collective snout (see The Rollback Begins, and Investor’s Business Daily editorial posted 11/10/2010).

Last week’s elections didn’t just upend the Democratic Party in Congress. They also delivered a warning to the public-sector unions that form the core of the party’s support. In nearly all elections where public pay and benefits were an issue, the voters ruled that the era of ever-richer rewards for government was over: Say goodbye to fat pensions at 55. Get used to living like the rest of us.

Did they finally just have enough?  Or is it that they’re just finding out how much better they live than the people paying those salaries and benefits?

Then there’s the Bell effect. Earlier this year, struggling taxpayers learned just how well some public-sector employees were doing. The revelation of outrageous salaries in the California city of Bell was a catalyst for scrutiny of public pay in general. All kinds of data have surfaced since then about six-figure salaries and lavish overtime in places large and small. It’s clear that the governing class has not been shouldering its share of sacrifice in these tough times.

They had no idea how bad their government was screwing them.  When they did, they spoke at the recent midterm elections.  They said, “Bad public sector unions!  Bad!  [Deleted expletive] you and the horse you rode in on.”

Your Stimulus Program at Work: $27 Light Bulbs

And if the raping and pillaging wasn’t bad enough (and don’t you think it should be?), look at what we got for that excessive compensation.  Graft, corruption and incompetence.  Government construction contracts have long been a license to steal.  The vehicle of choice?  Change orders.  Contractors win bids by submitting quotes substantially below cost.  Once they get the contract, the raping and pillaging begins.  They submit grossly inflated invoices for extra work.  Bloomberg reports a typical example (see New Jersey Auditor Questions $27 Light Bulbs Billed Under Stimulus Program by Dunstan McNichol posted on 11/12/2010). 

One contractor sought $27 for light bulbs, while another billed $1.50 for similar items, according to the report and Assistant Auditor Thomas Meseroll. Another vendor charged $75 for carbon-monoxide detectors that it had provided to a different program for $22, the report said. Eells also cited $32,700 in auditing fees when “no services had been performed” and $69,000 in construction costs that couldn’t be verified.

There are honest contractors out there.  But it’s hard for an honest contractor to get any of these contracts when incompetent boobs in government make it so easy to steal.  Especially repugnant in this example is that we paid for this contract via the $814 billion federal economic-stimulus program.  And, sadly, we know this is not the exception to the rule.  It is the rule.

Neither Rain nor Sleet nor Competence nor Fiscal Accountability

Whenever government runs anything they do a piss poor job of it.  Take, for example, the U.S. Postal Service (USPS).  Sure, it’s an independent organization, but the House oversees it.  And provided it a $15 billion line of credit.  Which they just borrowed the remaining $3.5 billion available on it (and who out there really thinks that they will repay that $15 billion?  If you have your hand up, put it down.  You’re embarrassing yourself).  If it walks like a duck, quacks like a duck then it’s run by government.  And run poorly.  UPS and FedEx are doing fine.  In fact, they’re chomping at the bit to deliver some mail.  But the government says no.  Only government has the requisite skill and expertise to walk around and put things into slots (thank you Seinfelds Newman for that bastardized line).  And just how well are they doing over there at the USPS?  Not good.  They’re projecting bankruptcy unless government saves their sorry ass (see Postal Service posts $8.5 billion loss by Ed O’Keefe posted 11/12/2010 on the Washington Post).

The cash-strapped U.S. Postal Service delivered more bad news Friday, announcing it lost $8.5 billion in the fiscal year that ended in September. Without congressional action to change its obligations, officials said, the Postal Service likely will go broke at the end of fiscal 2011.

Railroads used to say they were in the railroad business.  That’s why a lot of them went belly up.  They didn’t know what kind of business they were in.  And because of that, their competition swooped in and took their customers.  Because truckers understood what kind of business they were in.  Transportation.  And they could compete against the railroads.  Stunned by this revelation, the railroads reinvented themselves.  Understood their role in the transportation industry.  They’re doing well now.  That’s what the USPS needs to do.  Find their role.  Because this can’t be your dad’s USPS anymore.  And they can’t keep trying to run it like it is.

The Only Thing Government is Good for They’re not Good AT

Whether it’s graft or incompetence, the end result is the same.  Government screws us.  That’s what the power to tax can do for you.  You can give yourself whatever pay and benefits you want.  You have no competition.  No one can sell better government services for less.  There is no restraint on their greed but their conscious.  Which, of course, they have repeatedly shown not to have one.

If you place a government employee into a room, without a doubt he or she will be the most unqualified person in the room.  They have no marketable skills.  They can’t run a business.  They just know how to buy and sell votes.  And how to get rich off of the public purse.  If you want to destroy a business, let government run it.  If you want cost overruns, let government run it.  If you want to cozy up with unscrupulous people who want to steel from the public purse, let government run it.  And yet who do we keep demanding to fix and run things?  Government.  It boggles the mind. 

We need government.  Some government.  As in ‘limited’ government.  Private business cannot provide some public goods and services.  Sanitary sewers, for example.  Or the fresh water system.  But it’s like Peggy Bundy said on the television show Married with Children.  She was lamenting about the sexual inadequacy of men.  She said, “The only thing they’re good for they’re not good at.”  And so it is with government.  At least, based on their track record.

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The Message of the 2010 Midterm Elections: The ‘Teenaged’ Voted for Maturity?

Posted by PITHOCRATES - November 6th, 2010

Two Americas:  The Silly and the Sensible

Well, the 2010 midterm elections have come and gone.  And everyone has had their say about what they meant.  Few agree.  At least, few on different sides of the aisle agree.  Two interesting columns show the thought on these two sides.  The two Americas.  One sensible.  The other silly.  You decide which is which.

Graydon Carter, editor for Vanity Fair opines in Man Up, America!

What do you call an electorate that seems prone to acting out irrationally, is full of inchoate rage, and is constantly throwing fits and tantrums? You call it teenaged.

Meanwhile, Peggy Noonan writes in the Wall Street Journal (see Americans Vote for Maturity):

‘The people have spoken, the bastards.” That would be how Democrats in the White House and on Capitol Hill are feeling. The last two years of their leadership have been rebuffed. The question for the Democratic Party: Was it worth it? Was it worth following the president and the speaker in their mad pursuit of liberal legislation that the country would not, could not, like? And what will you do now? Which path will you take?

So one says the electorate is stupid, immature and churlish.  The other says the electorate is mature, sober and discerning.  One says the voters are idiots.  The other says that they are thoughtful.  One is a sore loser.  The other an objective realist.  One silly.  The other, sensible.

Conservatives, Moderates and Independents Exasperate the Liberal Elite

To make it clear, this is what the liberal elite think conservatives, moderates and independents are.  Too stupid to know what’s good for them.  It is just so exasperating that 80% of the electorate has the right to vote.  Like the children they are, they should be seen and not heard.  While those better than them tell them how they should live their lives.

Noonan further points out the folly of the silly by pointing out their negative ads.

Two small points on the election’s atmospherics that carry implications for the future. The first is that negative ads became boring, unpersuasive. Forty years ago they were new, exciting in a sort of prurient way. Now voters take for granted that politicians are no good, and such ads are just more polluted water going over the waterfall. The biggest long-term loser: liberalism. If all pols are sleazoid crooks, then why would people want to give them more governmental power to order our lives? The implicit message of two generations of negative ads: Vote conservative, limit the reach of the thieves.

For smart people, liberals are pretty dumb.

Ranaldo Magnus Earned his Rendezvous with Destiny

Too many people want to be politicians for the wrong reasons.  They want to be career politicians.  To be part of the ruling elite.  The American aristocracy.  For special privilege.  And because of this, a lot of inexperienced and unqualified people are in Washington.  President Obama perhaps being one of the most unqualified and inexperienced ever to hold elected office.  (Come on, be honest.  What qualifications and experience did he have?  Not as much as Sarah Palin.  And the Left ridiculed her.)

Ranaldo Magnus, on the other hand, did it the old fashioned way.  He earned it.  His rendezvous with destiny.  As Noonan points out so well:

Ronald Reagan was an artist who willed himself into leadership as president of a major American labor union (Screen Actors Guild, seven terms, 1947-59.) He led that union successfully through major upheavals (the Hollywood communist wars, labor-management struggles); discovered and honed his ability to speak persuasively by talking to workers on the line at General Electric for eight years; was elected to and completed two full terms as governor of California; challenged and almost unseated an incumbent president of his own party; and went on to popularize modern conservative political philosophy without the help of a conservative infrastructure. Then he was elected president.

And what did President Obama do?  A partial term as U.S. senator.  Before that?  Community organizer.  A pretty sparse resume.

We Need More Like Benjamin Franklin and George Washington Entering Public Service

Whatever irrationality there was that swept Obama and his Democrats into power is gone.  The grownups spoke this past Tuesday.  And they voted for maturity.  Let’s hope the grownups build on this.  And from them another Ronald Reagan earns his or her rendezvous with destiny.  Again, from Noonan:

Here is an old tradition badly in need of return: You have to earn your way into politics. You should go have a life, build a string of accomplishments, then enter public service. And you need actual talent: You have to be able to bring people in and along. You can’t just bully them, you can’t just assert and taunt, you have to be able to persuade.

This is the true American tradition.  Benjamin Franklin.  George Washington.  The two grand old men of the Founding.  These men were in the autumn of their years when they entered public service.  Old but wise.  Experienced.  With real-world talent.  Masters of persuasion.  Everything that Obama and his Democrats are not.  We need these wise and experienced.  To answer the call of service.  After having a life and a string of accomplishments.  The question is, are they out there?  Yes.  They are.  As we saw this past Tuesday.

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2010 Midterm Election: The Good, the Bad and the Ugly

Posted by PITHOCRATES - November 3rd, 2010

Big Cities, Big Union and Big Government

If you look at a map of the House election results (provided by The Washington Post), you can see the two Americas.  What you see is a red map with small dabs of blue.  And where are those blue areas?  The Big Cities, the big colleges, the big unions and the big urban concentrations of poor and minorities.  And, of course, the liberal elite in and around the Big Cities.  In other words, where you find Big Union (manufacturing, trade unions, school teachers and government employees) and Big Government.  And it’s the dynamic between Big Union and Big Government that empower the liberal elite.   Big Union provides campaign money and foot soldiers for Big Government.  And Big Government rewards Big Union by favoring their small minority over the majority of Americans.  It’s a throwback to before our Founding when kings and nobles ruled nations.  Political power is devolving into fewer and fewer hands. Into those little dabs of blue.

To get a perspective of how bad and how oppressive this ruling minority elite has gotten, consider two races.  Two people nationally despised won their reelections.  Barney Frank, who is largely responsible for giving us the subprime mortgage crisis, won in liberal Massachusetts.  And Nancy Pelosi, who forced her liberal agenda on the American people against their wishes, won by a whopping 80% in San Francisco.  This is what the Founding Fathers meant when they spoke of the tyranny of the minority.  These two have caused great harm to the American people.  Yet they represent such a sliver of minority thought in this nation.  They could not win a national vote.  Yet they can destroy a nation by winning their local vote.

But it’s not all bad.  If you look at the map, you see a lot of red in once dominate blue areas.  New England is not completely blue anymore.  New York State isn’t as blue as New York City.  Pennsylvania, Ohio, Indiana, Illinois and Michigan are red outside of the Big Cities.  Chicago, in fact, is a small pocket of blue adrift in a sea of red.  And in Washington, Oregon and California, if you move in from the Big Money coast, you see mostly red.  More importantly, if you click on the governors tab in the map, you see change, too.  New York and California are blue, yes, but there’s more red than blue overall on that map.  Which gives one hope that the republic the Founding Fathers gave us is not yet dead.  It will be hard to gerrymander those congressional districts around the Big Cities to give such little, elitist, local voices a large national voice anymore.

It’s the Economy, Stupid.  Was, and still is.

So, outside of the blue Big Cities, what do we know?  Well, the exit polling told us what we already knew.  It’s the economy, stupid.  We’ve lost too many jobs.  And that’s what we want.  Jobs (see Exit poll: Economy the big dog for worried voters by Connie Cass, Associated Press, posted on Yahoo!

About a third of voters said their household suffered a job loss in the past two years.

And as we lost our jobs, we lost our homes (see Homeownership at lowest level in a decade by Alan Zibel, AP Real Estate Writer, posted on Yahoo! News). 

The nation’s homeownership rate is at the lowest level in more than a decade, hampered by a rise in foreclosures and weak demand for housing.

And while we lose our jobs and our homes, what is the president doing?  Going on vacation to an exclusive 5-star resort.  And it’s going to cost the American taxpayer a pretty penny (see US to spend $200 mn a day on Obama’s Mumbai visit posted by Press Trust of India. 

The US would be spending a whopping $200 million (Rs. 900 crore approx) per day on President Barack Obama’s visit to the city.

Does the royal family feel our pain?

Not only do they govern against our will, but they flaunt it in our faces.  We struggle because of the likes of Barack Obama, Barney Frank and Nancy Pelosi.  We lose our jobs and our homes (which is ironic considering we’re in this mess to begin with because of Washington’s policy to provide affordable housing to those who could not afford to buy a house).  And what does the ‘royal’ family do?  Go on vacation that will cost the taxpayers millions of dollars per day.  I guess they can’t feel our pain.  Or that they just don’t care.  So think back to last summer when you spent your family vacation in your backyard because money was tight.  And that team Obama will probably raise your taxes come January 1 to be ‘responsible’ to pay for their irresponsible spending.  Take solace in the fact that at least he could live large on your dime.  Even if you had to spend summer ‘staycation’ in your backyard.

As we proceed from the 2010 midterm elections, do not forget the dynamic between Big Government and Big Union.  It won’t be easy, but they’ll continue to try to help fund those under-funded union pension plans.  And they will point to the Republicans as obstructionists.  That they need to compromise.  Put partisanship behind us.  Especially now.  Since they lost the House of Representatives, the Left can’t be partisan anymore.  Like they have been the last two years.

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