One For the Record

Assessing the Field

2012-01-02T05:08:00.000-08:00

The Iowa caucuses are tomorrow. The real significance of Iowa is the test of a candidates’ campaign operation. Can the candidate manage to get as many Iowans to the multitude of caucuses and raise their hand for him or her? It is an ultimate exam for organizational abilities which will be extremely important in the general election in November.

Let’s take a look at the GOP line-up:

Michelle Bachmann. She would make history as the first female President of the United States. She possesses solid conservative credentials while in congress and speaking on the campaign circuit. She is a passionate constitutional conservative as well as strong advocate for free enterprise. Congressman Bachman is one who doesn’t mince words. When she says she will eliminate Obamacare and close down the U.S. Department of Education, it is bankable.

Newt Gingrich. I remember the days during the Reagan Revolution when Gingrich (R-GA) and Robert Walker (R-PA) would engage in spellbinding colloquy over administration policy. There were others, principally from the Conservative Opportunity Society that took to the podium or rose from their seats to advance the cause of Freedom. We lived in historic times. Gingrich is the ideas man of the GOP. But as the late, great Thomas Roeser would opine, “Newt Gingrich is half brilliant and half crazy.” Newt is a solid supply sider, but can sometimes be a loose cannon.

Gary Johnson. He has bolted from the Republicans and has landed firmly in the Libertarian camp, announcing his candidacy for the Libertarian nomination for President on December 28, 2011. I can’t blame him. He got little respect from the Republican apparatchiks. Here was a guy who had a tremendous record as Governor of New Mexico and was invited only once to the debate table. He would have added greatly to the war of ideas as a spokesman for limited government. Of course his tragic flaw is his drug policy which kind of sends his candidacy up in smoke. Sorry Gary, you won’t get my vote. We need to send O to Hawaii for retirement.

Rick Perry. This guy has got great credentials including achieving the rank of Eagle Scout as a teen. As a fellow Eagle Scout, I empathize with his candidacy. In my heart I’m rooting for the Governor of Texas. However, his performance in the early debates sort of tanked his Presidential aspirations. Perhaps he can turn it around. Mr. Perry is the most solid on the issues that could bring about Reagan Revolution 2.0.

Ron Paul. We need Congressman Paul in the race to make us think. The dear Doctor is most aligned with the economics of Frederick Hayek and the Austrian school. An outstanding spokesman for limited government, he has added much to the debate in that arena. Where he fails to make the grade is in his foreign policy views. Yes, I get it, stay away from “foreign entanglements” as Jefferson warned of, but to embrace some of the zaniest views of Jesse “The Body” Ventura, former Governor of Minnesota, is a little meek.

Buddy Roemer. Why hasn’t this former Governor of Louisiana been invited to the debate party? His credentials are solid as a former U.S. Congressman (1981-1988) and community banker. If academic credentials figure into your candidate assessment, Roemer has a B.S. in Economics from Harvard and a MBA—Finance from the same. Buddy’s central theme is getting the big money out of politics. He feels that the large sums of dough are given to the politicians in Washington to exact favorites. He favors a balanced budget and fair trade. His tax policy is something that needs to be adopted in the new administration. Closing tax loopholes, eliminating the alternative minimum tax and the earned income credit are positive starts. The most favorable element of his tax plan is a Flat Tax of 17%, with the first $50k of income exempt. Personally, I favor a 10% flat tax, but this is an awesome start.

Rick Santorum. The most solid conservative in the field. And the best person to shore up the ticket as Vice-President for whomever the eventual nominee might be. He is a great candidate, but needs more seasoning as an executive. His foreign policy views are the stoutest among the group. Santorum’s voice for limited government is robust. He would be my candidate if he had any strong business or executive experience. But alas, he is from the House of Lords, err, US Senate.

I purposely left out Jon Huntsman. Seriously? Give me a break.

To my friendly and generous neighbors in Iowa, best of luck in your caucuses. You have a difficult decision to make. Tomorrow in Iowa it is expected to be a balmy 41 degrees and sunny. It should be a crisp, but comfortable night for making a choice for the future of the United States.

On January 20, 2013, America’s long, four year nightmare will be over when one of these great Americans hold up their right hand with the other on the good book and take the oath of the Office of the President of the United States.

Political Musings v6

2011-12-05T21:55:00.001-08:00

Gaming in Illinois

The Illinois Gaming bill that would have put a new casino in Chicago was doomed to failure. The legislation had become a hodge-podge of excessive expansion of gaming in the state. In order to garner enough votes for passage, the sponsors had to provide a bite of the apple to all legislators. The direct effect was to have so many new venues that it burst under its own weight. The proper course of action should have been to enhance existing venues and limit new ones that would cannibalize the others.

Democrat Campaign Plan

The Democrat 2012 campaign have already tipped their hand that their campaign will be chock full of “class’ warfare. The middle-class this, the one percent that…blah, blah, blah. There are only four classes of people in the U.S.:

a) Workers who work hard at whatever endeavor and pay taxes.

b) Investors who work hard and pay their taxes.

c) Thinkers that shape our world and pay taxes.

d) Those who wallow in the public trough and chew up the taxes the others have paid.

How American’s Vote

It used to be a rule of thumb among political operatives that citizens cast their vote for a candidate based upon the following breakdown:

50% voted based their vote on whether they LIKED the candidate.

40% based their vote on a candidates IMAGE.

10% voted on the ISSUES.

That breakdown may have changed over the past two decades; increasing issue based voting to 20% with a corresponding decrease in the other two.

With this in mind, there is much to LIKE about each one of the Republican primary candidates despite the way the media wishes to cast their IMAGES. The 2012 may come down to ISSUES. No matter who the GOP nominee might be, O Must Go!!

Profligate Spending

On every level of government, elected officials, attempting to placate those that came before them with hat in hand, made too many unsustainable promises. The proper answer should have been NO!! Now as we struggle to repair a broken economy the answer to government growth and largess should be, NO MORE!!

Memo to the Honorable Bill Cunningham

Billy Cunningham you’re a great American, but you are wrong. Obama will lose.

Democrats vs. Reaganites

Democrats are Hobbesian, “short, nasty, and brutish”. They feel compelled to grab the dough in your wallet, skim a little for themselves and stuff the rest into their allies pockets. Reaganites are Lockean, demonstrating complete confidence in people’s freedom to choose what charities are most deserved of their gratitude.

Politics As Bloodsport

The purveyors of the politics of personal destruction (notably leftists and their media hand maidens) have added another notch on their keyboards. The departure of Herman Cain from the GOP Presidential primary campaign was the result of their political assault. Thank goodness Mr. Cain will remain engaged through his introduction of Cainsolutions.com.

Things are shaping up to be an exciting Political Year 2012. Prepare thyself for hand to hand combat with the leftists in this cycle.

A 2012 Transformational Presidency

2011-10-25T08:54:00.000-07:00

Pardon the use of the term from the lug-nut left. Our country is in desperate need for the election of a transformational President in 2012.

The Presidential election in the forthcoming year will go down in history as a classic battle between the entrepreneurial class plus working men and women versus those who seek to advance dependency on government for their livelihood. It will come down to the Republican nominee against President Obama.

Obama has lorded over the incremental demise of the economic strength of this nation. This must change beginning in 2013.

A newly elected President will need to make bold decisions to turn the ship of state around, away from the circling storm. Among those items that require immediate attention are:

 Our national debt—the largest elephant in the room.

 Significant cuts in the federal budget, not spending reductions, but get out the cleaver type of CUTS.

 Tax reduction.

 Promoting a pro-growth regulatory environment, pushing back on agency authority.

 Revitalization of the Social Security system.

All of these items will be on the new President’s docket. All will need to be addressed forcefully without regard to re-election.

What should be the requirements for our new President? She/he should have solid business experience with a strong understanding of how our vibrant free-market works. Executive leadership in business or elective office, particularly as a Governor of a state or mayor of a major US city would be important part of his/her resume. Finally, he/she should be a great communicator like President Reagan.

Who best fits these criteria among the 2012 candidates? There are only four.

Mitt Romney

The former Governor of Massachusetts could be a remarkable President. He was co-founder/CEO of Bain Capital, a highly profitable private equity firm. Remember, Romney was the man who saved the 2002 Winter Olympic Games held in Salt Lake City, Utah. Here is a leader who fully understands how the free-market works and has demonstrated fiscal restraint in all his business endeavors.

Herman Cain

The former Chairman and CEO of Godfather’s Pizza took a faltering business and made it into a financial success. He is an outspoken advocate of Free-Enterprise. Cain has made low taxes and limited government a cornerstone of his campaign. He has the communicative chops to inspire and re-invigorate a downtrodden nation.

Gary Johnson

Prior to becoming a two-term Governor of the State of New Mexico, Johnson founded a construction firm that grew into the largest in that state. During his tenure as Governor he used his veto pen much like we vote in Chicago, early and often. Another who is an outspoken advocate of limited government; Johnson privatized prisons in New Mexico. He knows business and how to govern in a fiscally responsible manner.

Michelle Bachmann

As a small business owner and advocate, Bachmann knows how to meet a budget. Currently, a US representative from Minnesota’s sixth district, she can be considered a constitutional conservative. Any candidate who boldly announces that they would eliminate the Department of Education needs to be given serious consideration. She could be the one to bring a meat axe to the budget fight, rather than a dinner knife as is usually the norm.

These are a few of the candidates that would offer something greater than your run of the mill choices from the political class. They all have solid business experience and understand fully how our economy is meant to work. This will be a critical component for the Transformational Presidency.

Political Musings v5

2011-02-27T13:40:00.000-08:00

Presidential Election 2012

The wonderfully engaging political columnist Ann Coulter recently opined that the only potential Presidential candidate that could dislodge the office from President Obama would be New Jersey Governor Chris Christie. I must respectfully disagree. No matter who the GOP nominates they will be the new President. The Obama presidency will only be one term. The American people have had enough.

Union Protests

While our neighbors to North in Wisconsin endure the rants and ravings of the spuriously civil unionists, one democratic policy wag deposited the notion that their base was more invigorated than ever. Really? What of the “Gary Hart” voter? Remember the New Democrat versus the Union slug Mondale back in 1984? That dichotomy is still prevalent within the democrat party today.

Fuel Efficiency

The Obama administration rolled out new fuel efficiency standards for buses, trucks, and other larger vehicles, recently. The effort purportedly is to, in part, reduce our dependency on oil. Why not converting many of these vehicles to natural gas? The massive fleet of federal government vehicles should lead the way.

Education Vouchers

While the voucher legislation, introduced by State Senator Meeks, did not pass the Illinois House in the last session, it is no less an important issue worthy of debate. To elevate the quality of our education system, effective competition must be introduced.

Herewith is a compromise. Any school or school district that falls below minimum standards in testing and graduation rates, as set by the state, should be subject to a voucher program for a period of no less than six years. Allow the parents to decide where they wish to send their children utilizing voucher funds set at an amount that the school or school district spends per pupil. The parents should not be limited to sending their child to a bricks and mortar school, but could also use these funds for home schooling. Such a system would provide a powerful incentive to the educationalists to bring their schools up to standards. They should note that failure has consequences.

Re-apportionment

The census report shows that the City of Chicago lost 200,000 people in the last decade. This is where the Congressional District should be lost. Count on the Democrats drawing a map that places two Republican Congressman in the same district, though. Once again, elections have consequences.

Congressional Correspondence

It was with pleasure that I recently wrote to U.S. Senator Mark Kirk (R-IL) asking him to kill the bullet train funds. I also wrote freshman Congressman Randy Hultgren (R-IL 14th) with four reforms for social security. I look forward to their responses.

The political climate in the United States and Illinois is as fluid as ever which makes for great debates and as the great conservative, William F. Buckley, use to say, “social intercourse.”

CUT The Federal Budget Now!

2011-01-07T14:36:00.000-08:00

As Speaker of the House, John Boehner (R-OH 8th), said in his remarks after being sworn in as the leader of the 112th Congress, now comes the “hard work and tough decisions”.

We have reached a tipping point where the political / governmental ruling class now spends considerably more than it can ever take in. The federal budget must be cut now.

Back in October of 1987, Warren T. Brookes (Detroit News), writing in Reader’s Digest sited a study by Ohio University economists Lowell Gallaway and Richard Vedder, that simply stated that since 1947 every one dollar ($1.00) tax increase corresponded with a $1.58 in new spending. It is now 2011 and that differential has continued unabated. It is any wonder we find our nation in the financial mess it is in.

There is a roadmap for achieving the $100 billion in savings that the Republicans committed to in their campaign “Pledge”. Stated therein, “Cut government spending to pre-stimulus, pre-bailout levels saving at least $100 billion in the first year alone.” It will take a great deal of fortitude and the ability to sharpen the budget axe.

The following figures are based on the Fiscal Year 2011 (FY 2011) budget numbers. If the cuts are implemented it will reduce approximately $260 Billion in federal spending.

First, three departments and/or agencies should be completely eliminated.

Department of Education. Americans have always prided themselves on local control of schools. It should remain so. It makes absolutely no sense in sending valued tax dollars to a bloated Washington D.C. bureaucracy. Have them skim off a good portion of those dollars and then send the remainders back to the states. This is a department that was created during the Carter administration as payback to the teachers unions that supported him. It is essentially a department of paper pushers. The necessary functions can easily be folded back into a re-created Department of Health Education and Welfare.

Department of Energy. Essential functions can be folded into other departments like defense and other applicable agencies.

Corporation for National and Community Service. This governmental agency houses Americorp, among other things. Get rid of it. The savings would be $967 million dollars.

Second, let’s apply a twenty percent (20%) across the board cut to each of the following agencies. It would be the responsibility of each department secretary to recommend which discretionary spending should be cut.

Department of Agriculture Savings: $26.459 billion.
Department of Commerce Savings: $ 1.850 billion.
Department of Labor Savings: $23.343 billion.

Department of Interior Savings: $ 2.615 billion. Eliminating the Bureau of Indian Affairs alone would save 2.586 billion.

State Department Savings: $10.761 billion.
Environmental Protection Agency Savings: $ 1.834 billion.

National Science Foundation Savings: $ 1.359 billion. Additional savings could be realized by folding this agency under the auspices of NASA.

Small Business Administration Savings: $ 239 million.
Housing and Urban Development Savings: $ 9.507 billion.

Health and Human Services Savings: $180.170 billion. This department would be re-created into HEW by folding certain aspects of the Department of Education into it.

Third, the Department of Defense should be reconfigured to merge the Department of Homeland Security and the Department of Veterans Affairs to allow for additional cost savings by consolidating duplicated functions. Defense Secretary Gates has already proposed $78 billion in cuts. Congress should give his recommendations vigorous analysis and act on those that would not impair the ability of our armed services to defend this country.

A much-needed cut in this area is the Veterans Medical system. Facilities around the country that are not on a military installation should be closed. It is important that we maintain our commitment to those that have served by providing them with the best possible medical care. Provide them with a Military Medical Card and allow them to use it with any doctor or medical facility in the country. This alone would bring about greater efficiency to the care of our veterans.

Finally, one of the biggest budget items weighing in at $791.681 billion is the Social Security Administration. It is imperative that Congress removes this from the federal budget and put the funds in a lock box. A path should be created that transitions it from the current Ponzi scheme it has become into a supplemental retirement fund it was set up to be. Time does not permit a thorough examination of this issue. On another date I will analyze it more fully.

In order to return our nation back to a better fiscal place, cuts must be made. Are these proposed cuts draconian? Not really. Would government workers be laid off? Yes, but if they are truly talented individuals they can function greatly in the private or independent sector by growing each. The time is now to make the cuts. Failing to do so will bring the nation to ruin.

Election 2010 Aftermath

2010-11-08T13:49:00.000-08:00

The historic results of the 2010 mid-term elections have given the nation hope that the socialist policies of the current administration can be turned back. Come January 2011 the U.S. House of Representatives will be in firm control of the Republicans with as many as 245 members. Additionally, the Republicans will have 47 members meaning no longer will Democrats be able to break any filibusters. It is possible the Republicans may be able to have a defacto majority on many key issues, as there are many more Democrats up for re-election in 2012.

Abraham Lincoln once said, “ Leadership is, at times, a painful burden”. This is what the Republicans in the 112th Congress must be prepared to do; provide leadership on a full range of issues. First, is getting the economy back in full health. The majority must prioritize, engage, and execute these matters as quickly as possible.

Win. Win. Compromise!

Both sides have carved out their positions on the extension of the Bush tax cuts. President Obama has left the door open a little by saying he would look at a short-term extension for some income levels. While Senator Orrin Hatch has tipped the Republican’s hand by stating that he would be open to a temporary extension of three years.

The measure they should negotiate and pass in the lame duck session should be an extension of the “tax cuts” and expansion of the brackets of Obama’s “middle-class”. Additionally, pass Obama’s proposed quasi-accelerated cost recovery that would allow businesses write off major capital purchases instead of depreciated those assets over their useful life.

This is the type of compromise that can be achieved. It would allow Republicans a victory going into 112th Congressional season. It would allow Obama to save some face and get the economy rolling again. Politically it would be a draw. Both sides would have bragging rights before the real battles begin at the turn of the year.

The Battles Begin in January

Health Care Reform. Republicans and the few pro-growth Democrats left standing, should immediately move to dump Obama-care. Repeal, reform, and re-submit the legislation making it simple and free-market oriented. This is what many Americans had on their minds when they went to the polls. Speaker-elect, John Boehner, will need to work hard to guide this new improved legislation through under the threat of veto. Pass it. Let President Obama veto it if he dares.

Cut Government Spending. While Senator-elect, Rand Paul (R-KY), has already proposed an across the board cut of five percent which is laudable, more needs to be done. Republicans need to muster the will to cut deeper in order to get the nation’s balance sheet back in the black. Take out the budget axe and get it done 112th.

Social Security. It must be reformed and reinvigorated for it to survive. Newly elected Representatives and Senators should think outside the box to get the job done. Do it now, well in advance of the 2012 elections.

The Pledge. Republicans must adhere to all of the principles laid out in their “Pledge to America”. First, all of the economic matters must be dispensed with in order to have prosperity moving forward.

Important pieces of legislation will be worked on in the new 112th Congress. It is incumbent upon our newly elected officials to work diligently to turn around the specious policies passed by the Obama, Pelosi, and Reid troika. It will take considerable tenaciousness and courage. Which leads to another famous quote by Abraham Lincoln, “Courage is loss through disuse”.

Election Day 2010 Observations

2010-11-02T09:30:00.000-07:00

The U.S. Senate

It’s possible that the Delaware Senate seat will not be needed for Republicans to wrestle control of that deliberative body. The Republican candidate will not lose because she is the conservative witch of the east, as the dead-tree media will lead you to believe. She will lose because she became winy during the final week of the campaign and did not hold her opponent, the bearded Marxist, Mr. Coons, feet to the fire.

Based on polls in the closing days of the election, I am inclined to believe that the Senate will be comprised of 50 Democrats and 50 Republicans with crazy Uncle Joe Biden casting the deciding vote on important issues.

Campaigns’ Closing Days
Did you notice that President Obama and V.P. Biden spent much of the closing days of the campaign in deep blue states. This is a strong indication that the dems are in deep doo doo. Normally, a party’s base would have already been secured. From there the campaign would then circle out to marginal areas to secure close races. The internal polls must have showed something different.

2012
Believe it or not, the campaign for President begins the day after today’s election. Obama is already down six electoral votes from the 2008 contest, based upon census estimates. Texas alone is expected to gain four congressional seats. Consequently, four additional electoral votes for 2012 will be added to Texas’ 34. California on the other hand will not gain any for the first time in decades. Should Obama run for re-election the swing states he won in 2008 would be major battlegrounds in 2012.

Re-apportionment
If it turns out to be a Republican Tsunami today, you can almost bank on the fact that the Republicans will control the House for the next decade. Many states will elect Republican governors today and help them with split or fully controlled legislatures. This is the democrat’s worse nightmare. The Republicans are likely to put in play more geographically reasonable re-districting maps. Gone will be the gerrymandered districts that the Democrats love to carve out.

It will all be fun to watch, read, and listen to tonight.

Vote Early or Vote on Tuesday, November 2nd, 2010

2010-10-25T10:51:00.000-07:00

The Two Most Important Constitutional Offices in Illinois

In order for Illinois to be place on a prosperous path, the two most important offices we will make selections for are Governor and State Treasurer. Working in tandem these two office holders are positioned to have the greatest impact on the quality of the business environment in Illinois. The creation of a strong business environment will make way for a prosperous future. Additionally, these two offices hold the key to getting Illinois on firmer financial footing.

For Governor

Bill Brady (Republican) will make a great governor. He will hold the line on taxes and make the necessary cuts in spending to whip the state in shape. Brady is a businessman from the downstate farm belt. Both qualify as solid positives. He will create a business environment for economic growth thereby once again positioning Illinois as the economic engine that can drive the Midwest.

For Treasurer

Dan Rutherford (Republican). State Senator Dan Rutherford has a solid business background. He has served as a skilled legislator known for getting things done. A workhorse, not a show horse as many of his democrat counterparts are. He will work hard to watch that the taxpayer funds are spent wisely.

The U.S. Senate Dilemma

When young I felt that a U.S. Senator was an office of high honor, but over the last couple decades my faith in that body has diminished greatly. It is filled with blowhards and too many members of our American aristocracy (lawyers). It has taken on the attributes of a “House of Lords”. Its importance these days is limited to approving judges and other Executive branch appointments through confirmation. It is the U.S. House of Representatives where the real work gets done. But we must vote for a U.S. Senator this election.

Six-Month Term

Mark Kirk (Republican). He would be an able Senator, somewhere between a Chuck Percy and a Peter Fitzgerald. Kirk is solid on defense and fiscally responsible. Should the Republicans make big gains he could be steered rightward toward needed tax cuts. His opponent would be a disaster for Illinois and our Nation.

Unexpired (Two-month) Term

Mike Labno (Libertarian). If you have some doubts about Mark Kirk and his squishiness then this vote is for you. You can be certain that Labno will do no harm and probably be of some help pushing back on the lame-duck socialist-democrat agenda. This vote will serve notice to Kirk that he is on notice. Should he fall back and vote for such things as “Cap and Tax” he will risk banishment to the political wilderness when he stands for re-election.

My Legislative Trifecta

Illinois Congressional District 14

Randy Hultgren (Republican). He will serve the district well. Hultgren will be a solid vote for lower taxes and significant budget cuts. Should he win, he will be part of the largest freshman class of congress in recent memory. You can count him to listen to and work on behalf of his constituents.

State Senate District 25

State Senator Chris Lauzen (Republican). A solid conservative that has served his district well. Always responsive to constituent inquiries. He needs to be returned to get the states fiscal house in order.

State Representative District 49

State Representative Timothy Schmitz (Republican). Not one for self-aggrandizement, Schmitz is a solid legislator that serves the district exceptionally well. Return him to office.

A Must Vote
Illinois State Comptroller
Julie Fox (Libertarian). She has the necessary accounting background to serve our state capably.

All the tea in China could not make me vote for Topinka. Ol’ Judy is nothing more than a donkey in elephant clothing, if you get my drift. After what she and her cronies did to Jack Ryan to give rise to an obscure State Senator named Obama, she needs to be retired from politics forever.

2010 Elections Will Get Our State and Nation Back on the Road to Prosperity.

Get out and vote. The right vote will put Illinois and our country in position for a prosperous future.

The Importance of the 2010 Election

2010-10-18T09:09:00.001-07:00

The importance of this year’s election cannot be understated. The 2010 general election ranks much higher than any other election in this decade. Not only will voters be able to take a stand against profligate government spending, but will make a determination as to whether tax and budget cutters will make it into the halls of power. Consequently, moving our state and nation on the road to solvency.

Another great effect of this year’s election is how the reapportionment map will be drawn. After the dust has settled post November 2, 2010, legislators and the Governor will begin the careful negotiation of how the states legislative and congressional districts will be drawn.

Based on Census estimates coming out of Washington, D.C., Illinois stands to loose another Congressional seat. Based on tentative census figures the big gainers will be Texas (+4) and Florida (+2). Other states that will gain a seat will be AZ, GA, NV, SC, UT, and WA. Joining Illinois’ with projected loss of one seat will be our neighbors Iowa and Missouri. Others with a projected one-seat loss will be LA, MA, MI, MO, NJ and PA. The biggest losers will be Ohio and New York, both with a projected loss of two seats.

It remains to be seen whether that seat will come out rural Illinois or the City of Chicago. Based on past growth patterns, it is unlikely any seat will be poached from suburban Chicago. If one examines the current map there are two congressional districts that are egregious examples of gerrymandering. District 17 in Western Illinois floats from the Quad Cities area down the Mississippi River down to the Illinois towns outside of St. Louis, MO, then juts over to the Springfield, Illinois area. Currently Phil Hare (D) represents the 17th district. The other gerrymandered district is district 4 in the City of Chicago and inner suburbs. Imagine a giant horseshoe with large clubs at the tips. Louis Gutierrez (D) represents the 4th District. A young child could have drawn both of these districts much better than the legislature did ten years ago. This has to be improved.

I am inclined to believe that the seat should come out of the City of Chicago. Population growth has been greater in the suburbs. People have moved out of the city to the suburbs for decades. The Congressional map should be drawn accordingly.

The 2010 Election is very important, as we will make a choice between fiscal sanity or traveling further down the road to serfdom. We will also determine what type of legislature we will have for years to come based on the reapportionment issue that looms large on the horizon.

Fixing The Housing Crisis

2010-10-11T13:20:00.000-07:00

Have you had your stimuli today?

The Housing Mess Must be Fixed, Now!!

According to Realtytrac.com there is close to 2 million homes in various stages of foreclosure. In Illinois alone, one in every 314 housing units is in foreclosure. The national average is one in every 381 units. That is astounding. Currently, a number of lending institutions have sidelined their foreclosure process due to clerical missteps. The fact remains we have a terrible housing crisis on our hands. What is Congress’ answer to the problem? A financial re-regulation act. Not the solution.

One source I visited with indicated that the housing mess would not abate until 2013. That comes from someone in the real estate business for over twenty years and quite successful. Others have said maybe 2015. Now that is a serious problem.

In order to move towards a great housing recovery three economic components are urgently needed; job growth, income growth, and population growth are what are necessary to lift the crisis. Given the current administration’s policies and congress’ inaction, the lack of recovery will be further prolonged.

Stimulate Job Growth
(1) Cut corporate taxes to free up monies for investment and hiring.

(2) Cut personal income taxes and spread the brackets.

(3) Cut the payroll tax to 5% for employees and employers. Financial planners encourage people to pay themselves first often floating a goal of 10% of ones gross pay. Why should working people be compelled to put more than that into the ponzi scheme know as Social Security?

The tax cuts during the Kennedy years and the Reagan years had a stimulative effect on the overall economy. The same could be done during these hard economic times.

Income Growth
The tremendous effect of the tax cuts would spur stronger economic growth, create more jobs and cause incomes to rise. It becomes basic supply and demand classical economic equation. As more job openings are created there will be more demand for the best hires. Consequently, incomes will be bid up. The tax cuts alone will allow people to have greater disposable incomes.

Population Growth / Immigration Reform
While it is true that there has been a baby boomlet over the past few years, we will have to wait another twenty-five years before those youngsters enter into the housing market. We probably don’t want to wait that long for a housing market recovery. What is needed is top to bottom immigration reform. Begin by protecting our borders, which is in our National Security interests. Beyond that we need to re-examine who gets granted visas. Provide the undocumented incentives to: a) either become US citizens, or b) obtain the proper work visa. Correlating consequences should be made for those who do not abide. All criminals must go.

Until we turn around our moribund education system we need to attract the best and the brightest from other lands. In this regard we offer incentives to attract those highly skilled immigrants. Put them on a fast track to US citizenship if they invest in a house. Create a little demand for housing.

This trifecta of solid economic moves will have a healing effect on our current housing crisis. If acted upon in an urgent manner, perhaps we can see the housing market recover before 2013.

Will Republicans Gain Veto-Proof Majorities

2010-09-29T12:52:00.000-07:00

Over a year ago I commented on a discussion thread on Politico.com, engaging in some drive-by commentary, that the Republicans would gain 47 seats during the 2010 election cycle. The lefties, liberals, and eco-topians jumped on my punditry with comments like:

What planet are you on?
What have you been smoking?
Brought your lap-top to the bar, again, ehh?
Hey Rip, where have you been?

Hope and Change springs eternal. Who is hee-hawing now? The election landscape has changed so dramatically that some are asking whether a veto-proof majority looms. It may be possible in the House of Representatives, but unlikely in the Senate. For a veto-proof majority the Republicans would have to win 290 seats in the House and hold 67 seats in the Senate.

Nothing the current administration has done to fight the economic malaise (a Carter phrase, since this is the second term he never had) has worked. The unemployment still hovers around 9%. The housing mess gets worse, exacerbated by little income growth and no employment growth. Stimulus. What Stimulus? The only thing that has been stimulated is the wallets of the various cronies, interest groups and fellow travelers of the Obama administration and their congressional allies.

We have reached the tipping point. As the party of government (Democrats) battles to preserve the paychecks of their apparatchiks in government; meanwhile the government of the people (Republicans) push back, offering tax cuts and spending cuts in an effort to turn the economy around. A political war is breaking out between the entrepreneurial class and the ruling class.

The question remains whether the Republican’s have the stones to offer meaningful cuts as in slicing department budgets by 25% or eliminating whole departments. We shall see. The “mad as hell” voter is out there and ready to pull the lever for any politician that will get us back to fiscal sanity. Now that would have a greater simulative effect by throwing the tax and spend rascals out.

The Obama administration continues to throw fuel on the American public’s dissatisfaction with its policies by offering up another stimulus package. If the first one failed, why would voters support another? This administration is pulling out all the stops to really put its allies in Congress on the defensive. The administrations policies have energized the opposition. The only question is the depth of Republican takeover of Congress, come November. Veto proof majorities may not be possible during this election cycle, but if there is no improvement in the economy, the American public will not put up with it. These are very interesting political times.

Political Musings v4

2010-09-22T15:35:00.000-07:00

The Silly Season Begins

It’s the silly season. We political animals incur an extra adrenaline rush as we inch towards Election Day. Unlike, Chris Mathews who has the tingle up/down his leg. He probably just sprung a leak in his depends.

The political signs pop up like weeds across the Illinois prairie. Relentless political radio and television ads appear. And the robo-calls fill the voice mailbox. Thank goodness it will all be over after that first Tuesday in November.

Chicago 2011 Mayoral Race

Chicago Mayor, Richard M. Daley’s amazing announcement that he would not seek re-election sent shockwaves through the Illinois political establishment. There are really only two candidates that could successfully run the City of Chicago and maintain its status as a World Class City. Both have the business background and managerial experience to deal with Chicago’s myriad challenges and problems. They are: the Mayor’s brother, former U.S. Commerce Department Chief, William Daley (D) or former Helene Curtis President and CEO, Ronald Gidwitz (R). Either one of these fine gentlemen have the resume and leadership capabilities to move the city forward. All other candidates will only be a single A player. A world-class city such as Chicago needs a major league player to keep its prominence.

Budget Cut. Revenue Raise.

Here is a Budget Cut that we could all support. Cut the salary of all U.S. Representatives and U.S. Senators by $174,000. They clearly have not been up to the task over the last decade, in view of the current economic environment we currently find ourselves in. They do not deserve the pay.

A Revenue Raise that there would be little objection to--Lobbyists would need to obtain a license for 100 large. There are too many lobbyists in Washington, D.C. This would weed out some of them.

The Island Paradise of Cuba

Fidel Castro recently announce that Cuba’s economic model is not working. What is he to do? Use the Obama model? It doesn’t appear there will be any change in store for the destitute citizens of Cuba.

Tired of the Obama Presidency???

More and more Americans are growing weary of this President and his policies. He is more an arrogant Professor than the leader of the free world. He will be able to improve his golf game beginning in January 2013. Like two failed

Democrat Presidents before him, Mr. Obama will go the way of LBJ and decide not to seek another term, announcing his intention to spend more time with his family. Or he will be hustled away in a landslide victory for his Republican opponent, similar to Carter in 1980. The writing is clearly on the wall.

Note to the Honorable John Boehner, M.C.

Freezing spending at 2008 budget levels is unacceptable. Meaningful cuts are the greater necessity. Begin by eliminating and/or slashing whole departments. Such action will be the only way to secure our nation from economic ruin.

Political Musings v3

2010-03-15T08:21:00.000-07:00

Schaumburg Drive-By

This week’s drive-by shooting in Schaumburg, a relatively quiet suburb Northwest of Chicago should be a clarion call for tougher sentencing for handgun violence. What should come with a conviction of “the unlawful discharge of a firearm, with intent to harm” is a minimum 25-year sentence with no parole. That should be a strong enough deterrent to the gangbangers, criminals and crooks who seek to hurt decent law abiding citizens here in Illinois.

Presidential Race 2012

Most of us look forward to the November elections this year where we will be able to vote out the rascals who have been part of the economic mess our nation finds itself in. Immediately thereafter there will be many that will be jockeying for position for the 2012 Presidential campaign. I will be looking for a candidate, who as President will have the chutzpah to offer a balanced budget with wholesale cuts to specific departments. He or She could then present it to Congress during a State of Union Address as follows:

“Distinguished Supreme Court Justices, Vice-President, Senators, Members of Congress, ladies and gentlemen:”

"The State of our Union is fair. We can do better! Tonight I am submitting my budget and governmental re-organization plan for your consideration. In it, my administration has provided 2500 specific cuts to get our nations budget in balance. Additionally, we have provided ten specific tax cuts to stimulate the economy."

"This budget will provide a solid foundation toward helping the United States of America retain its singular position as the beacon of Free Enterprise in the World."

"Thank you, God Bless you and God Bless the United States."

With that, the President would walk down from the rostrum and into the crowd of dignitaries and begin fist bumping the Republicans, Libertarians, and pro-growth Democrats.

Spending Limitation Amendment

The great Indiana Congressman Mike Pence (R-IN) along with the solid free-market Congressman Jeb Hensarling (R-TX) have introduced an amendment to the US Constitution that would limit federal spending to 20% of economic output. This is a terrific idea that would need to be ratified by 34 states after passage by 2/3 of both the US House and US Senate. This Spending Limitation amendment would constrain the legislative branch from its profligate spending.

Recent Letter for the US Census Bureau

Did you get the letter from the US Census Bureau announcing that the 2010 Census form will be arriving in the mail?? I know the US Post Office is hurting, but what a waste of money. Another question, shouldn’t the official language of the United States be English?? This Census form letter advises people to go to the US Census Bureau web site in several different languages. Ridiculous!

Four Illinois Reforms

2010-02-07T07:54:00.000-08:00

The Illinois primary election has all but concluded and still there is not a declared victor in the race for the Republican nomination for Governor. As provisional and absentee ballots are fully counted, a winner between State Senator Bill Brady and State Senator Kirk Dillard will emerge. It is more than likely that this will be a Republican year and the new governor will have significant challenges before him. There are four reforms that he should work on to make a better Illinois.

Illinois Pension Fund Reform
During the Republican primary campaign much was said and written about Illinois pension fund reform. There are too many people that have wallowed in the public trough throughout their adult life only to retire with bountiful benefits on the taxpayer’s dime. This has to end. Double dipping and layering of pension benefits must end if Illinois is to get back to fiscal sanity. The system must be reformed. Beneficiaries should only get 75% of their average public earnings as a state employee. The politicians have gamed the system and are guilty of taxpayer abuse.

Forensic Audit of State Expenditures
A forensic audit of all state expenditures is needed. This was one of the hallmarks of Adam Andrzejewski’s terrific campaign for the Republican nomination for governor. The new governor ought to heed his advice. Taken a step further, he ought to appoint Mr. Andrzejewski as head of a commission that can study state spending and make recommendations on cuts that have to be made as well as finding greater efficiencies in state government. Think the Grace Commission during the Reagan era. It made thousands of recommendations to root out governmental waste and fraud on the federal level. An “Andrzejewski Commission” on the state level could do the same.

Citizen Legislature
This is an idea whose time has come. The great political columnist and talk show host, Thomas Roeser, floated this idea in a recent column. It makes superb sense. My political education was received in the tumbleweed landscape of New Mexico politics. In New Mexico they have a citizen legislature. That is to say that legislators serve part-time and have regular occupations. During election years (even numbered years) the legislature met for 30 days. In odd numbered years the legislature met for 60 days. The interesting facet to this was that if a piece of legislation did not gain passage by both chambers, it died. Prompting the bill sponsor to introduce it in the next year. At the time legislators received only $75 per Diem for legislative matters. Illinois ought to dump the full-time legislative process and begin anew with a part-time legislature. When it is not in session we will all be safe.

Judges Should Be Appointed
This past primary season we witnessed a number of television ads touting the judicial temperament of judges running for the appellate court. I found this demeaning. The Governor should appoint Judges at this level and above. Local judges could continue to run for office. This was a heated discussion during the founding of our nation. The new governor should engage our modern day aristocracy (the legal community) to figure out away this can be achieved. One only has to look at the election of the democrat’s Scott Lee Cohen to the nomination of Lieutenant Governor to see that the voters do not have the necessary time to study judicial nominations. Let the legal community provide judgeship recommendations to our Governor.

Aside from the tremendous budgetary issues a new Governor will have to face, he will need to move forward on a number of reforms to create a solid economic environment here in Illinois. Our new governor should also consider the four reforms above.

Pondering the February 2nd Illinois GOP Primary

2010-01-26T09:16:00.000-08:00

The State of Illinois has almost deeper problems than the good old USA. We are a week away from the GOP primary on February 2, 2010. As the euphoria wears off from the Senator-elect, Scott Brown, victory in Massachusetts, the Illinois GOP has some huge mountains to climb before that same type of victory can be duplicated here. Just as in Massachusetts, there is a growing movement that seeks to throw out the incumbents during this election cycle. To a certain extent, I agree. My sentiment is that we should follow in the footsteps of our fellow Americans in Massachusetts and throw out the establishment within the party brands. It is time to send the old guard on a barge down the Mississippi River into the delta where they can retire in splendor to spin yarns about election battles of years past, won and lost. With that thought, here is where I have cast my votes (through early voting) for contested primary races.

Governor: Adam Andrzejewski
He is an entrepreneur who has met a payroll and is intent on shaking the Springfield combine up with new ideas. He is NOT part of the modern day aristocracy, a lawyer. To those who say that he is not experienced enough is a true canard. Anyone who puts together a successful business enterprise is quite capable of running Illinois State Government. Adam is such a person. As Abraham Lincoln once said “The dogmas of the quiet past, are inadequate to the stormy present.” With that in mind, it is time to throw out the old and bring in new, fresh leadership to dramatically change state government.

Lieutenant Governor: Jason Plummer
Young and full of energy. Just the type of person that can assist the Governor’s team in weeding out wasteful spending and bringing in fiscal sanity to an over bloated state government.

U.S. Senate: Patrick Hughes
We are on the verge of an election revolution across the United States. He would joint the conservative block in the U.S. Senate and work for additional tax cuts and reduce government spending.

U.S. Congress—14th District: Randy Hultgren
He is the better of the two GOP candidates in replacing Congressman Foster.
More seasoned than Ethan Hastert, Hultgren will represent this district well. He most assuredly will take a stand against the porky earmarks that Congress has attached to legislation for the last decade.

State Comptroller: William Kelly
He would be a valued member of a GOP team that will shake up state government and push for transparency. Not to mention he could add a little pizzazz to the overall GOP ticket.

State Senate—25th: State Senator Chris Lauzen
Part of the fab five elected to the state Senate in the 1990’s. He has always been responsive with his constituents. You can count on Chris to cut through the budget nonsense and work with a new Republican Governor to get the State of Illinois on firmer financial footing.

While I have already voted, I encourage you to request a Republican ballot in this Tuesday’s Illinois Primary and exercise your franchise.

CUT TAXES NOW!!

2010-01-11T18:47:00.000-08:00

December’s jobs report was not good. With the unemployment rate still stagnate at 10%, the economy is still sputtering. A number of labor economists point to the real unemployment rate sitting at 17% to 20% when you include discouraged workers and the under-employed.

To add to this weak situation, larger firms like United Parcel Service (UPS) have announced significant layoffs forthcoming. UPS can be considered an indicator of how well the economy it doing. If package shipments are up it’s a good sign that the economy is improving or robust. Currently, it does not look good.

The Keynesians in power seek to push through another stimulus package. President Obama is emphasizing “green jobs” as part of that package. The first stimulus did not work very well. What makes them think a second one will? It won’t.

In order to effectively stimulate the economy, CUT TAXES NOW!

To those who will argue that a tax cutting policy will only add to the deficit, phooey. Perhaps in the short run that might be the case, but in the long run the revenues will increase as job growth and income growth rise as a result of significant tax cuts.

Tax cuts worked during the Kennedy administration in the 1960’s. They worked during the Reagan administration in the 1980’s. They worked during the Clinton administration during the 1990’s. Even the Bush tax cuts helped an economy mired in recession at the start of this century.

Four simple tax cuts are urgently needed now.

1. Cut the payroll tax (FICA) to 5%. Employees have this tax taken out of their paycheck. A cut would put more money in their pocket for saving and spending. Employers pay this amount too. A cut would free up more cash for their business operations.

2. Spread the Marginal Tax rates for the Federal Income Tax. Make the adjustment retroactive to January 1, 2010 allowing for more take home pay. The rates should be adjusted as follows:

Rate-- Single Income-- Married Income
10%-- Up to 20,000---- Up to 40,000
15%-- 20K to 45,000-- 40K to 90,000
20%-- 45K to 90,000-- 90K to 180,000
25%-- 90K to 180,000- 180K to 360,000
30%-- 180K and UP--- 360K and UP

3. Cut the Capital Gains Tax to 10%

4. Reduce taxes across the board for small business owners.

All of these tax cuts taken together will provide plenty of capital to get the economy rolling again. Spending will not. It is through economic growth and income growth that produce the revenue stream to retire government debt. The alternative would be the Keynesian exacta of Death through Taxes.

Mr. Steele Needs New Advisors

2010-01-06T09:40:00.000-08:00

I have a great deal of respect and admiration for Michael Steele, the GOP Party Chairman. His recent pronouncements that it is unlikely that the Republicans will pick up enough seats to gain control of the US House of Representatives, is mind boggling. Mr. Steele is a smart man. Could it be that he is just gaming the media? It would not surprise me. Grab headlines in the dead tree media, on the toob, and over the digital media space with a view that runs counter to the conventional wisdom. Play the expectations game. Fire up the Republican base counting on them to prove him wrong. Very interesting strateegery.

More likely, he has a staff of Potomac politicos that don’t wander too far from the beltway. Out here in the heartland, the people are greatly upset with the politicians in Washington, D.C. Both the Democrat and Republican brands are deeply tarnished. Should congress continue to ignore the wishes of the people there will be electoral revolutions at the ballot box come November 2, 2010.

Mr. Steele needs to fire his current crop of political advisors, as this is not the first time they have gotten the GOP in hot water through their silly advice. Remember the “litmus test” trial balloon that was floated over the summer? They promptly removed from discussion. There were ten points which I list below, annotated of course.

(1) We support smaller government, smaller national debt, lower deficits and lower taxes by opposing bills like Obama's "stimulus" bill;

Yes. I recall during the Reagan area, former Congressman Manuel Lujan, Jr. (R-1st-NM) running ads in which he stated, “We need to move to a smaller, leaner government.” This is a very good thing.

(2) We support market-based health care reform and oppose Obama-style government run health care;

Yes. Free Market competition will produce lower costs.

(2) We support market-based energy reforms by opposing cap and trade legislation;

YES. Incorporate the “Pickens Plan” into any energy plan.

(4) We support workers' right to secret ballot by opposing card check;

YES. Why give the Big Unions more political power and the opportunity for retribution to those who do not support them.

(5) We support legal immigration and assimilation into American society by opposing amnesty for illegal immigrants;

A qualified NO. Protect our borders. Revise current immigration “quota’s”. Reform the visa granting process. Provide a process by which those already in the country can obtain citizenship. The Fed’s lax policy has led to the illegal problem and they need to be held accountable for it. Federal Prisons for those convicted of crimes.

(6) We support victory in Iraq and Afghanistan by supporting military-recommended troop surges;

YES. With a change in overall strategy. No more “Nation Building”. Like the Israeli Mosad, hunt down the terrorists and give them a dirt bath.

(7) We support containment of Iran and North Korea, particularly effective action to eliminate their nuclear weapons threat;

YES. If we fail to achieve results with respect to Iran, Israel will act. We must engage fully with China to get Korea to back down.

(8) We support retention of the Defense of Marriage Act;

YES.

(9) We support protecting the lives of vulnerable persons by opposing health care rationing and denial of health care and government funding of abortion; and

YES. Without Life there is no future!

(10) We support the right to keep and bear arms by opposing government restrictions on gun ownership.

YES. Furthermore, we need conceal / carry in Illinois.

While a litmus test sounds appealing, all it produces is a bunch of clones. A more diversity of opinion generally produces great ideas that can move the country forward.

Mr. Steele needs to spend less time along the frozen Potomac with his political consultant friends. He needs to venture into the heartland and really see what is on people’s minds. He could then see that it is possible that the Republicans could pick up 47 seats during this years midterm election. This would give the GOP control of the house (225 seats) and the Democrats will once again be in the minority (208 seats).

Schaumburg Succumbs to a Property Tax

2009-12-30T06:20:00.000-08:00

It is with sadness that we all recently learned of The Village of Schaumburg’s decision to levy a property tax to meet the current budgetary shortfall. Schaumburg as not had a property tax since its formation in 1956. My family moved to Schaumburg in the early sixties and this is where I grew up. I still consider Schaumburg my hometown. Skokie is now the only major suburban Chicago community that does not levy a property tax.

Village leaders say they had to implement this tax in large part because of a significant decline in retail revenues during this great recession. You see Schaumburg is considered the Retail Mecca of the Midwest. Woodfield Mall, one of the largest malls in North America, anchors its beautiful skyline. Rolling out from the mall are numerous shopping centers (that include big box retailers), car dealers, furniture retailers (IKEA comes to mind), and restaurants.
With a projected $17.6 million General Fund deficit, Schaumburg has decided to levy a tax of 8.1% of the 2009 property tax bill. The Village manager and his staff recommended the property tax levy to the full Village board. There are other ways for Schaumburg to get out of its budget quandary, some of which were ruled out because market conditions are not favorable. That is the arrogance of government.

First, the Village should sell off the Convention Center and Hotel. Some consultant recommended that they build the Convention Center and that it would pay for itself. Baloney. The private sector does a much better job than any governmental entity at running hotel businesses. Government should not be involved in enterprise.

Second, the Village should sell off the Schaumburg Flyers baseball stadium. Minor league baseball is much more profitable than the majors. Fans enjoy the natural play of the sport and any team ownership worth their salt is able to increase their fan base and profitability. Sell it to the baseball team owners, perhaps on a long-term contract. Ownership of a baseball stadium is not the role of government.

Third, re-evaluate the village’s master plan and zoning laws around the Woodfield Mall area. The village should allow for high-rise residential development. This can provide a base of retail consumers for that area. The net effect of this would be greater support of the existing businesses and attraction of new business. In turn, tax revenues will increase. While the housing market is not yet fully recovered, in time it will improve. Demographic population changes will fuel the increase in popularity of condominium dwellings.

Fourth, join the other five Northwest Suburban townships in forming a new county (Lincoln or Reagan) thereby telling Crook County to go stuff it. Cook County and its daddy, Chicago, are the most corrupt units of government in the State of Illinois. Its fair time that the municipal leaders of the Northwest Suburban region wake up and sever all ties to this unit of government. Not only has Crook county levied a large retail tax (part of which was recently rolled back), but its method of assessing commercial property makes these property taxes a huge burden on businesses in the Northwest Suburban region.

Schaumburg can survive without a village property tax by taking the steps mentioned above. The community has a lot to offer. It has a solid library district, a strong park district, and quality schools, which are a part of elementary school district 54 and high school district 211. These government entities survive just fine with their tax revenue. Schaumburg should be able to do the same.

A property tax levy will only hasten the departure of businesses in Schaumburg to more tax advantaged areas outside of Crook County. The Village should concentrate on providing basic services and not try to build a real estate fiefdom.

Political Musings

2009-12-21T06:15:00.000-08:00

Global Warming…yeah, right.
While the eco-topians hammered out a non-deal in Copenhagen, 18-24 inches of snow fell on Washington, DC. Meanwhile the eco-preacher from Tennessee, Al Gore, continues his pattern of false statistics and scientific measures. To these global alarmists the Global Warming is a religion and Gore is their pastor. I wonder what flavor kool-aid they drink?

Obamao-Care
The U.S. Senate marches on towards passage of the health care legislation. Apparently they have the votes and will pass the Senate version by Christmas Day. This legislation will burden Americans with increased taxes and add greatly to the federal deficit. Republican reform measures were all ignored, including: insurance portability, tort reform, importation of prescription drugs, and expansion of Medical Savings accounts. All of which are true reform. Instead, smarmy Harry Reid, has stuffed the legislation with “earmarks” to buy off legislators. Should the conference committee piece together a final measure that gains passage, the legislation will be re-visited after the 2010 elections.

Double-Dip Recession?
With the incredible tax burden that is festering due to a huge stimulus package that has failed, Obamao-Care, and the prospects of some form of Cap and Crunch (the economy), it is likely that we will see a double-dip recession. The weight of this troika of the iron fist of government will hurt small businesses and independent business people. Because of the new mandates and tax increases the self-employed and underemployed will rise as small businesses get pounded. Watch for the unemployment rate to remain unchanged. Also, watch for the “contingent workforce”, as it is called in Private Equity circles to rise. It is possible that many will be moved from the payrolls into a role of skilled temporary workers as a result of the socialist-democrat legislative agenda.

Does Government do Anything Right?
As the Party of Government (POG’s) increases the level of government workers and their benefits you have to wonder why? Do they do anything right? Consider:
· Amtrak continues to run in the red.
· The U.S. Postal Service will have a $3.8 billion loss this year and is projected to lose $8.0 billion next year.
· Fannie and Freddie are near insolvent and continue to be a dumping ground for political has-beens.
· The government cannot get the flu vaccine distributed in a timely fashion and when it does it is found that numerous batches do not have sufficient strength to ward off the current strain.
· Education. Most of the public schools in this country are terrible and produce those that graduate with an education that cannot compete with the rest of the world. Shameful.
It seems to me that government service attracts mediocrity while private industry attracts the best and the brightest. That is not to say that there are exceptional people working for governmental institutions. It is just that government bureaucracies do not create a culture of excellence. Government needs to be shrunk desperately.

Secular Religionistas
Why is it that all the secular religionists have to weigh in on all matter of public policy? Can’t they just shut up and tend to their flocks? They should concentrate on making their followers better people.

Liberal Union Leadership
These goons continue to speak out and lobby on all types of legislation. Very little of which has anything to do with matters important to their membership. They should negotiate on behalf of their members, NOT try to represent all Americans. The healthcare legislation is a case in point. They are pushing this monstrosity, yet in the Senate bill they are going to get hosed. The bill will heavily tax the “Cadillac” healthcare benefits they negotiated for their membership. No wonder union membership continues to decline. Its leaders are trying to get their 15 minutes of fame in the National political arena instead of negotiating for their membership.
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Towards a Vibrant Independent Sector in Illinois

2009-12-17T13:41:00.000-08:00

John F. Kennedy said in his inaugural address, “Ask not what your country can do for you, but what you can do for your country”.

Karl Marx opined in his book, Das Kapital, that capitalism would fail as soon as the people learned to vote themselves money from the treasury.

The reason I juxtapose these two ideas is that we have moved far away from the former and closer to the latter. In essence we have become an entitlement society. Because of this attitude, many Americans have relied on the largess of government to support themselves and the institutions they belong to. It’s time to get many of these snouts out of the treasury trough. And ask people to become more self-reliant.

Illinois should take the lead in developing a vibrant Independent Sector. Less reliance on government to solve our problems will go along way in solving the states current fiscal crisis. Americans are the most generous people on earth. Illinoisans are no exception. Isn’t time we reward that generosity and build a strong Independent Sector? This is vital to creating a transfer of reliance on money in the treasury to an Independent Sector that solves problems locally and in a more efficient manner.

One way to make this change is to initiate a tax deduction for charitable contributions on the Illinois Income Tax Return. Currently, the state form IL-1040 has a “Step 10” in wish you can donate in any amount to a list of causes delineated on the form. You are not allowed to deduct this generosity. Instead you reduce your refund or increase the amount you owe should you choose to make a donation. Why not change this completely and allow Illinois taxpayers a deduction of all charitable contributions by reducing their adjustable gross income by the amount they donate. Cap the amount at an even $5000.00.

A “form Ch” could be created to itemize these charitable donations. Of course the donations would only be allowed to registered charities in the state of Illinois. The state legislature could set up the process by which this is accomplished. The “form Ch” could also be a means for recognized charities to raise funds, similar to the ones listed in “Step 10” do now. The state should charge a fee for such collection and distribution to the charity. A taxpayer would get the full benefit of reducing their taxable gross income through their generosity.

It is vital that Illinois create an environment for a vibrant Independent Sector. A charitable deduction for the Illinois taxpayer would go a long way towards achieving that. During these tough economic times it is important to wean the so-called independent agencies off the government teet and bring them into a truly independent status. The consequence would be to develop less reliance on government largess and more self-sufficiency.

The Seaweed Amendment

2009-12-08T14:33:00.000-08:00

Last week when the President delivered his Afghan War speech, I, like many of the cadets in the audience at West Point, began to doze off. I fell into a dreamlike state………

During the late hours of the night the U.S. House of Representatives met to discuss amendments to the healthcare legislation.

Congressman: “Madam Speaker”

Speaker: “For what purpose does the gentleman from Kentucky rise?”

Congressman Slimnon Pikkens from Kentucky adjusted his blue tie and headed down to the well to address his colleagues in the House.

Congressman Pikkens: “Madam Speaker I have an amendment to the Obamao-Care legislation which I have submitted for consideration by this body.”

Speaker: “You have six minutes, sir.”

Congressman Pikkens: “Thank you.” “Madam Speaker, Ladies and Gentlemen of the House. I submit to you an amendment to this historic healthcare legislation which I will call the Seaweed Amendment.”

“Said amendment is a tip of our beret to our friends across the Pacific Ocean, our Japanese allies.” “Under this amendment every man and women 21 years of age and older shall keep their waist size no greater than 35.5 inches in diameter.”

“Furthermore, an annual measurement will take place on September 15th of every year.” “The significance of this date is the birth date of our only 300 plus pound President, William Howard Taft."
“The net effect of this amendment will keep health care costs down and provide ample focus for all Americans to watch their girth while maintaining a healthy lifestyle.”

Speaker: “Thank you, Congressman Pickens.” “Is there debate on the matter before us?”

Speaker: “Hearing none we will move toward a vote.” “On a voice vote the ayes have it.” “The amendment passes.”

I suddenly awoke from my slumber, arose from the chair, and headed to the junk drawer in the kitchen. I pulled out a tailor measure. 'Twas some swag I had received from a men’s clothing store when purchasing a couple of Geoffrey Beene shirts many years ago. I proceeded to measure my waist. Damn, 36 inches. I thought, “I’m going to have to contribute to that “Taft Fund” for the oversized.”

Then through the fogginess in my mind I realized it was only a dream. But could something like this happen as the Socialist Democrat agenda marches on?

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Prison Reform??

2009-11-18T12:37:00.000-08:00

From time to time the subject of prison reform comes up on the political radar, here in Illinois. Usually from the left, the angle is to provide more “benefits” for the inmates. The type of reform we do not need is Governor Quinn’s early release of thousands of prisoners. Nor do we need to house Gitmo enemy combatants in the Thomson Correctional Center.

Governor Quinn’s decision to grant early release to thousands of inmates is a slap in the face to law enforcement officials that built cases against these criminals. It is also a middle finger in the face of the jurors and the judges that sentenced them. If you do the crime you should do the time. Not get an early release because of supposed overcrowding.

The sale of the Level 1 (maximum security) Thomson Correctional Center to the feds should be allowed to go through. The state has not been able to fund this facility nor can it. Illinois needs the dough. Sell it to the feds, but they can keep the terrorists. To see Little Dicky Durbin standing side by side with Governor Quinn, poo pooing the Illinois Congressional delegations concern over moving the terrorists from Gitmo to Northern Illinois was a sight to behold. Little Dicky, who has called our troops unmentionable names wants to give quarter to individuals who would surely shoot our troops, given the chance. This guy is a blowhard, “joke” of a US Senator.

If there is such overcrowding in Illinois prisons, build more prisons. Yes, I know, Illinois doesn’t have the money. Find the money. De-fund all the unnecessary programs that exist and the discretionary funds provided to various state agencies. The state needs to prioritize its spending. It is far better to keep criminals off the street and families safe, then it is to fund some special artsy fartsy project.

Here are a few ideas for restructuring our states prison system.
(1) Build a level 4 (medium security) correctional center in the City of Chicago to relieve some of the overcrowding. There are plenty of areas in the city in which to build as more and more manufacturing companies bail out of the city. One site that comes to mind is the 17-acre site that RTC, a plastics corporation, will be vacating soon. It is located in the South Lawndale neighborhood.
(2) Begin to separate the prisoners by assigning them to prisons that house criminals with like offenses (i.e.: Murders Row; Robbers, Burglars, and Thieves; Gangland; etc.)
(3) Those convicted of minor drug offenses should be given a choice by the Judge of going to a “boot camp” type rehab facility or one of the Level 7 (low minimum security) work camp or correctional center.
(4) A separate facility might house those convicted of unlawful discharge of a firearm with intent to harm. Such a criminal act should get an automatic 25-year sentence.

Prison reform involves a lot more than letting prisoners loose before they serve their full amount of time or selling a prison to the feds. It will involve hard work and innovative solutions to get the job done. Hopefully the next Governor of Illinois can roll up his sleeves and get the job done. Making the state of Illinois safer for all law-abiding citizens should be a top priority.

Communication Breakdown. It Won't be the Same!

2009-11-12T10:34:00.000-08:00

If last Tuesday’s (11/3) elections are any indication, both the Democrats and the Republicans have much to do bring back their luster. Both parties have begun to fracture. The elephants have gotten loose in the Republican tent, have run around knocking into the center pole and the tent has collapsed. Democrats have begun to spar with one another over ObamaCare, Cap and Trade (aka, Cap and Crunch the economy), and Bank and Finance legislation. All of this dissension has led to a growing independent voter movement.

The Republican Party has lost its luster as it departed from the Reagan Revolution into a borrow and spend political model. A kind of Jude Wanniski “Santa Claus Theory” on steroids. Promise them the moon and figure out how to pay for it later. Thus, the move away from the party to a declared independent status.

Democrats, on the other hand, have become the party of government (the direct opposite of the GOP, hence the POG). Over the decades since Jimmy “The Cracker” Carter, people have left the party in droves. Again, more often than not, they have moved to an entirely independent position.

This independent position is where political battles will be fought and won in the new decade soon to begin. Moreover such fracture in the two party system will lead to more third party movements and their eventual success. Much of this success will occur on the Congressional level as many voters identify with neither political party brand. Will either party go the way of the Whigs? It’s possible. The Whig party was destroyed over the issue of slavery. Founded in 1833 by Henry Clay and John Quincy Adams they felt that congress should hold more power over the executive branch. They were also very protectionist, which could have also led to their demise.

The current fracture or communication breakdown may lead to the four political parties in every congressional district as the next decade draws near. After re-apportionment the party breakdown will be:
Socialist Democrats—think Speaker Nancy Pelosi, Senator Bernie Sanders (I-VT), and our President, Barrack H. Obama.
Traditional Democrats—think union rank and file of the trade unions, Teamsters, and UAW. The laborers, SEIU, and AFSME will cast their lot with the Socialist Democrats.
Republicans—chosen on the basis of family tradition, country club and generational wealth. A kind of Fraternity/Sorority operation. Think Senator Olympia Snowe (R-ME).
Reaganites—chosen on the basis of economic freedom, strong national defense, and limited government.

The communication breakdown is already here. And when it takes root, it won’t be the same.

Obama-Care Must be Sent to the Infirmary

2009-11-01T18:17:00.000-08:00

Not long ago, an old friend of mine sent me a video pertaining to the so-called public option portion of Obama-Care. In the cartoonish video it stated that a government funded health care system could be very efficiently run. It provided proof of governments ability to run programs by mentioning social security and the postal system, to name two. I nearly fell off my chair in laughter. The Postal System has a deficit in the billions and Social Security is nothing more than a giant Ponzi scheme. If a government run health care system is the latent intent of Obama-Care then it needs to be sent to the infirmary.

It seems the democrats are greatly divided over putting in the public option with Speaker Pelosi (D-CA) and Senate Leader Reid (D-NV) pushing for it and more moderate party members like Max Baucus (D-MT) prefer to opt out on that element. Meanwhile the Obama administration "dithers". The democrat written health care legislation needs to be dumped. The public option is basically an incremental step towards government control.

The Nobel Prize (1974) winning economist F.A. Hayek, wrote in his fine book, The Road to Serfdom, "Our freedom of choice in a competitive society rests on the fact that, if one person refuses to satisfy our wishes, we can turn to another. But if we face a monopolist we are at his mercy." The current health care bill working its way through Congress places us on the slippery slope towards a governmental monopoly. Should it pass, it will put not only our health care system into tailspin, but will severely damage our already fragile economy.

The outstanding Republican Congressman Paul Ryan (WI-1st), offered up the "Patients Choice Act of 2009" earlier this year. It had many good elements in it. One portion of it made little sense to me. It proposed to eliminate the tax exemption offered to employers that provide health insurance to their employees. In its place would be a $2300 individual tax credit and a $5700 family tax credit. With these monies, an individual or family were free to select their own health care or to apply it to whatever their employer was offering. Now there is no duty by employers to offer health insurance, but those companies that wish to hire the best talent ought to have the ability to offer it. And get a tax exemption for it. The self-employed ought to be able to have that same tax benefit.

In order to provide a competitive environment for health insurance a number of components need to be incorporated in any legislation coming out of Congress. They are:

Tax credit for all out of pocket medical expenses including for elderly care.
Portability. We should be able to move from one plan to another based on any change in employment status.
Insurance plans should be offered across state lines. This will provided needed competition.
Medical tort reform. Cap the awards on pain and suffering.
Health Savings Accounts (HSA) should be expanded further. This alone will provide the basis for a three-tier health insurance paradigm. Level one--basic preventative health care, check-ups, working with our physicians to establish healthy lives. The payment for these would be out of pocket or through our HSA's. Level two--emergency care and accidental health insurance. Level three--catastrophic health insurance for live changing medical care.

The present health care system is so clogged that it needs an angioplasty. It needs to be invigorated with more competition to lower costs. Yes indeed, it needs reform. What it doesn't need, is the time of reform that the Obama-Care orderlies are working up. This type of Obama-Care needs to be sent to the infirmary, indefinitely.

We Need a Strong Governor for Illinois

2009-10-26T11:53:00.000-07:00

I recently received a campaign letter dated 10-12-2009 from former Governor Jim Edgar (R), endorsing Kirk Dillard in the Republican gubernatorial primary. Governor Edgar (served 1991-1999) was the last decent Governor we had. During his administration a good deal of lard was cut from the state budget and he produced a budget surplus. Since then we have had nothing but shame heaped upon us. I'm proud to say that I voted for him thrice (including once in the primary for his second term as opposed to following the Chicago precinct model, "vote early, vote often"). Governor Edgar is well respected by many Illinoisans, rightfully so. His endorsement of Dillard carries a great deal of weight, particularly in a crowded primary field. As much as I respect former Governor Edgar, I have to decline.

State Senator Kirk Dillard is a solid conservative and has toiled in the government trenches for years. He has been in the Illinois State Senate since December 1993, sixteen years. During that time he has sponsored and helped pass a number of important pieces of legislation. He touts his experience as a key reason to vote for him for Governor. I disagree. That long service in government is not what Illinois needs right now. Illinois needs fresh ideas and fresh eyes on the problems it faces. Kirk Dillard's experience needs to remain in the State Senate to serve as floor leader for the next Governor of Illinois....

Adam Andrzejewski.

Adam Andrzejewski (pronounced And-G-F-Ski) is pushing hard for transparency in government. He is seeking to require all units of government to electronically post where all the taxpayer dollars go. Additionally, Adam will make use of the veto pen. My impression is that it will be one of those imprinted BIC pens rather than the more expensive legislative bill signing pens. Adam is the candidate to be counted on to cut bogus state programs and agency discretionary funds (he calls them "shoe boxes"). Such cuts are something I'm afraid other candidates will not do.

You know what I mean. Nudge, Nudge. Wink, Wink. Senator A wants funds for a bike pathway in his district and Senator B wants funds for a new obelisk in the local town square. They get together to support each others discretionary projects in the usual Chicago method; "you scratch my wallet, I'll scratch yours" and the funds are appropriated accordingly. Later we citizens learn it's a bike path to nowhere and the obelisk looks like a dog named Politico pinched a steamy loaf on a slab of granite.

Adam, as Governor of Illinois will not stand for this, er, crap. Andrzejewski will place fresh eyes on the problems Illinois' faces. He will put forward new ideas to reinvigorate the Illinois economy. As an entrepreneur, Adam knows how to meet a payroll and knows what high hurdles small businesses must face here in Illinois. Unlike other candidates Adam is not part of the modern day aristocracy, that is to say, he is not an attorney.

Adam Andrzejewski is like you and I. Small business people trying to provide for our families in a tough Illinois economic environment. Andrzejewski will provide sunlight on Illinois Government. This will induce a nice sanitizing effect. When the time is right, he will sunset redundant programs, goofy spending and hidden slush funds.

Most Importantly, Adam Adrzejewski will set in motion a strong economic environment that will create jobs and opportunities for business growth and entrepreneurship. This is exactly what Illinois needs.

Adam Andrzejewski for Illinois Governor 2010.

Political Musings

2009-10-20T10:59:00.000-07:00

Huckabee 2012 ??
No Way! Conservative commentator, Tom Roeser posited this question in a recent blog on his site, TomRoeser.com. Mr. Roeser is an excellent wordsmith and I have to admit that I agree with him 90% of the time. On this notion of Huckabee in 2012, we depart. I do not think Huckabee has the stones to cut government as it must be. In fact, in my estimation, I do not believe any of the top tier candidates Romney, Palin or Huckabee would be capable of making the necessary cuts. Perhaps former Colorado Governor, Bill Owens or current Indiana Governor, Mitch Daniels would have the tenacity to make cuts to the profligate federal spending.

CATO Institute
The CATO institute, a free-market oriented think tank in Washington, D.C., has come out with a plan to downsize the Federal government. CATO proposes to eliminate the Department of Education, a good portion of the Department of Agriculture, and the Department of Housing and Urban Development (HUD). I have long advocated the elimination of the Department of Education, ever since President Jimmy "The Cracker" Carter created it. The Department of Agriculture is another matter. CATO proposes to gut most of the department moving most of its functions to the states. For the most part I agree. Where I disagree, is the "Legacy" National Parks. They should be left in Federal Hands. The smaller, so-called National Parks that have been created by US Senators and Congressman seeking to gain favor with the ecotopians, should be left in state hands or as CATO proposes private land trusts. HUD can go and after reading CATO's proposal it makes more sense.

$100 Oil is still Coming
In my last post I said it was on the way. Now the US Dollar is getting pounded even more. Commodity prices are on the rise. As the rest of the world is beginning to show signs of recovery from the Bankers Flu (swine flu, if you wish), the US still putters along while the Obama administration does nothing.

Charity begins in Your Community!
Even as we all struggle in this troubled economy, please remember to give to those organizations in your community whose mission is to help the less fortunate. Even if you only have clothing items or other materials, it is important that we continue to help the "Independent Sector" grow.

100 Dollar Oil !!

2009-10-13T09:18:00.000-07:00

Yes. It is coming to a gas pump near you, the pricing impact of $100 per barrel OIL. It will hit us by 2Q 2010 and will negatively effect our troubled economy in a big way.

As of this writing oil is sitting at $73.96/bbl. The economies in other countries seem to be showing some signs of recovery. In particular, the emerging economies of the BRIC (Brazil, Russia, India and China) are again on a forward growth path. Consequently, demand for oil is rising and the price is rising along side this increased demand. Not only will we feel a price impact at the pump, but prices for other products derived from our petro-chemical industries will also rise. We will certainly feel it in the plastic products we buy and other distillate products we use.

What has our government in Washington, DC done since Oil hit the $147/bbl mark last year? Not much. Oh, there was some elements of the so-called stimulus plan that may help, a little. But for the most part all that has emanated from Washington, DC has been a lot of hot air. [Now if only we could harness this hot air, we could heat the Capitol building for a decade]. Since oil prices dropped below $60/bbl it has been business as usual. Now they are on the rise.

Washington should lead by example and convert all government vehicles to alternative energy sources. Since the Post Office is running such a significant deficit, this should be the first quasi-agency to go alternative. All of their trucks and delivery vehicles could convert to CNG (compressed natural gas) or LNG (liquid natural gas) as a fuel source.

Additional tax incentives should be put in place to encourage private sector businesses to convert to alternative fuel sources thereby reducing our reliance on foreign oil. To sit and emit hot air on this issue will only cause greater harm to our country.

Chicago Loses Olympic Bid

2009-10-05T05:29:00.000-07:00

Chicago did not even make it to the medal round in its bid to win the 2016 Summer Olympic games.

Much has been said and written over Chicago's failure to win the bid. Here in Chicago we were caught flat footed when tossed in the first round of voting. Rio de Janiero, Brazil had a more impassioned and better bid. They took the gold home.

Could Chicago have won the bid? Yes. With a much more impassioned and targeted plea to the International Olympic Committee (IOC) meeting in Copenhagen, Denmark. Was it President Obama's fault as many of the talking heads blame? No. He gave a nice talk pitching Chicago on behalf of the United States. I disagree with the boneheads that argue he should not have made the trip, citing he had more important things to do. Hey folks, the President doesn't sit in coach twiddling his thumbs waiting to touch down. No, he is working the phones, meeting with key staff, and conducting the business of the USA.

First Lady, Michelle Obama, gave the most impassioned plea and knocked the ball out of the park. In the process, saving Chicago's overall bid presentation. If it weren't for her, Chicago would not have even got the 18 votes in the first round. Mayor Daley gave a boring Chicago-centric speech. The type of parochial effort you would hear by a Chicago ward boss.

Did they play a great game? NO.

If the Chicago 2016 committee wanted to give 110% effort (a type of effort required to win the gold in the games) they would have targeted their appeal to the IOC members. You see, 42 voting members of the IOC have participated in the games, many of which have won medals. The Chicago presentation should have made with these members in mind. A little less feeding of political egos and a lot more Olympic athletes making presentations. The athlete presentations should have included US and non-US members of past Olympic teams. The ultimate goal being how Chicago would best benefit the Olympic movement. Having more focus on the International sporting events that the Chicago Metropolitan area has successfully hosted would have greatly aided the overall presentation. All of this would have sealed the deal.

I am not sure Rio is ready. It has far more problems to solve before 2016. Hopefully they can get them resolved before the games begin. In the end, it was Rio that played a much better game.

2016 Olympics in Chicago

2009-09-29T08:50:00.000-07:00

Good Luck to the Chicago 2016 Olympic Committee!!!

As a former middle-long distance runner in high school and college I am extremely supportive of Chicago's effort to land the 2016 Olympic Games.

I wish the entire bid team the best success towards landing the Olympic Games in 2016 in Chicago. The entire metropolitan area would greatly benefit by having the Olympics here and the principles of the Olympic movement shared by all those that compete and attend. To those critics who feel the games might be a financial boondoggle, I say bull pockey. Chicagoans know how to turn a buck!! And my feeling is that the 2016 games, if hosted by Chicago, will be one of the most successful ever.

Good luck to President Obama and the lovely First Lady, Michelle Obama, in their presentations. And to Mayor Daley and his presentation team in their tremendous efforts to put Chicago on the international stage in a most positive way.

Social Security: Our Sovereign Wealth Fund

2009-09-28T08:04:00.000-07:00

As addressed in an earlier post, I felt that the Social Security is one of the main issues that would need to be given priority by the new administration. Now Social Security is percolating to the top of the issue docket. The recent news by the Associated Press that the system will see a $10 million dollar deficit in 2010 due to a number of older Americans seeking benefits as a result of layoffs and business closures in this troubled economy, will surely bring the issue to a boil. Add to that a recent discussion on MSN--money which stated that seniors will not see a cost of living increase in their monthly checks. Plus the mention of it in Steve Forbes Fact and Comment column in Forbes magazine. Social Security will soon be the lead issue in Americans minds.

Forbes in his excellent column states that things would be different now, had FDR accepted the Clark Amendment to the Social Security legislation enacted in 1935. The amendment would have given Americans a choice between the public option (Social Security) or a private insurance plan.

While Social Security has become the third rail in American politics, it merits robust discussion which will move it toward beneficial reforms. I once thought it should be a voluntary, private system. It seems to me that Social Security should be a requirement as part of our social safety net. With the recent Madoff scandal and greedy Wall Street bankers robbing and pillaging funds and their subsequent theft of taxpayer dollars in the form of bailouts, Americans are a little fearful of where they put their retirement funds. The financial mess we find ourselves in is one giant burr in the American saddle.

Social Security should be reformed and transformed into Our Sovereign Wealth Fund. Yes, it is a supplemental retirement fund. That was the original legislative intent behind it. Further steps need to be taken to strengthen the system.

Social Security is for all American citizens. All should be included without regard to income level. The following reforms should be implemented for a solid Sovereign Wealth Fund to be created benefiting us all:

Lower the payroll taxes to 5% for the employee and the employer. Self-employed Americans should pay no more than 10%.
Limit the payout (remember it is a supplemental retirement fund).
Similar to a 401K program, the system should allow people to select different investment programs to beef up their monies placed into the fund.
The Social Security Administration should not just invest in US Treasuries, but also invest in other debt, equities and real estate to provide growth and income in the fund. Congress should place strict risk restraints on the fund's investment officers.
Move the entire system out of the orbit of the Congressional cookie monsters. Put it in a "lock box" and keep the Potomac Pirates' mitts out of the cookie jar.
Everyone working in America should pay in. American citizens would receive benefits based on the funds they invested into the system. There should be no income level cut-off (currently at $106,000). Call this the Buffet tax, if you get my drift.
The payout from social security to retires should not be subject to federal income taxation. Retirees receiving social security payments should also be allowed to earn as much income outside of Social Security without penalty.

All of these reforms will strengthen Our Sovereign Wealth Fund: Social Security. Feds nailed Bernie Madoff on his Ponzi scheme, it is now our turn to nail the Feds on their Ponzi scheme. Lets takeover Social Security and create Our Sovereign Wealth Fund.

Obama's False Recovery

2009-09-20T21:57:00.000-07:00

Despite the early signs of a mild recovery as in the stock market run up and one good month of rebounding indicators, the economy has a long forward stroll before reaching full recovery. There are too many hurdles in the way. The small signs are creating a false recovery.

First, a SIDEBAR: Contrary to #39 Jimmy "the Cracker" Carter's view, as an American I am free to criticize our President without being viewed as a hater. I happen to like President Obama and when feeling a touch of spirituality, I pray for him and that of his wonderful family's good health and prosperity. I do not like his policies. The problem with old #39 is that he not only has lust in his heart, he suffers from an embarrassing malady known as athlete's tongue.

Now back to #44's false recovery. While the economic prognosticators are singing to the tune of "Happy days are here again", there are a number of things churning underneath the economic surface which tell us that all is not well. Consider the following economic items:

With most banks paying only 1.5% on savings there is a big shortage of income.
From all news accounts the job outlook is still dismal.
While inventories have dwindled down, thereby increasing industrial production, factories are only operating at 60% capacity.
The huge run up in spending by both the borrow and spend Republicans and the tax and spend Obamacrats is unsustainable without an increase of growth and income, including from point one above.
Commercial real estate is a problem with many construction and mortgage loans coming up for re-finance in 2010 and 2011. With vacancies up and very little absorption in the near future, this poses a severe economic problem.
More Bank failures are on the horizon due to non-preforming loans across all asset classes.
Credit markets have not thoroughly thawed.
In a number of states home values are still declining, including Illinois which has seen an 11.8% decline.
There is still a large number of homeowners seeking to downsize and that number will continue to rise as the baby boomers age towards retirement.
The current government stats indicate that the economy grew at a modest 3% last month, but we need more than twice that to pay for all the bailouts, stimuli and earmarks that have been rolled-out over the last nine months.

Without the removal of all of these hurdles, we will have a terrible false recovery. There are a five things that President Obama can do to enable the economy to move towards a full recovery. The first two will have, dare I say it, a stimulative effect.

Make permanent the Bush tax cuts. Take a step further, widen the income level for lower tax bracket and lower the rate of the top bracket to 30%. More funds in Americans pockets will trigger savings and investment as well as consumer spending.
Reduce the capital gains tax to 10%. This will create greater velocity in the investment markets.

The last three items are a little outside the box.

3. Recalibrate our immigration process. Despite what the America haters suggest, people from every corner of the earth still desire to come to the United States. Let them. Especially if they are hard working and seek to assimilate to the richly American way of life.

4. Remember the Reagan policy of constructive engagement? Engage Cuba to move towards democratic capitalism. Soon the Castro brothers will be taking a dirt bath and there will be a leadership vacuum which will create an opportunity for our country to export products to that island nation 90 miles from Miami.

5. Create an Allianza de Progresso with Mexico, Central and South America. Generate strong economic growth in our Western Hemisphere. These countries are our neighbors, we should be doing more unfettered trade with them.

Obama's false recovery could be turned into a robust recovery following the ideas above.

NO Progressive Income Tax for Illinois

2009-09-06T13:16:00.000-07:00

Recently Illinois Comptroller, Dan Hynes, announced his candidacy for Illinois Governor. As part of his announcement he released a twenty page document entitled Leading Illinois Forward: The Hynes Plan for Tax Fairness & Fiscal Prosperity. This is an excellent read for policy wonks. It contains a number of great ideas to bring Illinois back to fiscal sanity. One idea that is NOT good, is his proposed progressive income tax for Illinois Taxpayers.

Currently, Illinoisans pay a flat 3.5% on their income. I believe this is too much. It should be lowered back down to 2% as it was before the Edgar administration raised it to its current level. Under Hynes' plan there would be a top rate of 7.5%. Luckily, the voters in Illinois would have to approve an amendment to put a progressive state income tax system in place. A progressive tax system would be another spike in Illinois already troublesome business and employment environment.

According to a CNBC report, Illinois ranked 25 out of 50 states in "America's Top States for Business 2009". In a state with Illinois' population, resources, talent, and amenities, that is shameful. Adding insult to injury Illinois ranks 43rd in Business friendliness and 38th in Cost of Business. Illinois does not need to continue its business and manufacturing decline by instituting a progressive income tax system. One does not need to be an Nobel Laureate in Economics to understand that capital (derived by income) is key to business development and growth.

To Hynes' credit, in his budget blueprint he offers a number of cuts that make incredible sense. How often do we here politicians bellow about cutting government spending, but do not hear a peep about what cuts they would make. Hynes' puts his ideas to paper. In addition he proposes a number of revenue enhancing ideas that are intriguing. Now, I like Dan Hynes. And in the interest of full disclosure, I did vote for him for Illinois Comptroller in 2006, wandering off the (R) reservation. It was a political chit I felt I owed to his family for their help in my Eagle Scout service project (a voter registration drive) three decades ago.

Dan Hynes is dreadfully wrong in his desire to bring Illinois a progressive Income Tax system. Such a system would only hurt Illinois's already feeble business and employment outlook. What is needed, is lower taxes on businesses and individuals. This would create a stronger environment for business retention as well as business creation and growth. Consequently, employment growth would follow beating down Illinois' already high 11% unemployment rate.

Please. NO Progressive Income Tax system for Illinois!!!!

Illinois Gaming Law needs a Re-set

2009-09-01T09:16:00.000-07:00

Recently, the DuPage County Board acted judiciously and correctly in outlawing (forbidding) video poker terminals within the unincorporated areas in DuPage county.

Under the new "Capital Bill" signed by Governor Quinn, the new Video Gaming Act allows for 5 video poker machines per liquor establishment, truck stop, and Veterans / Fraternal club. The Illinois Gaming Board (IBG) has yet to promulgate rules and regulations for this new gaming activity. The Governor was foolish for accepting this amendment to the Capital bill.

The door has just been opened for organized crime to strengthen its position in Illinois. It remains to be seen whether we will be seeing dead bodies in car trunks out at O'Hare as turf wars develop as a result of this new gambling. Oh, I'm sure the IBG will put together strict rules about who can be involved in the poker terminals, but lets face it unless their enforcement offices are funded properly, it won't be little mice jumping through the loopholes, it will be Illinois bison lumbering through any loopholes. The Illinois legislature should have the stones to dump this insidious legislation. Granted, any municipality or county can opt out of the law,but too many will be salivating over the projected revenues that video poker supposedly will bring in.

There is only so many gambling dollars available for people to spend on this entertainment. The legislature would be wise to strengthen its current gaming venues instead of creating additional ones to take dollars away from these. Currently Illinois has nine Riverboats with a tenth one to birth in the Des Plaines river in Des Plaines. Why not enhance the current law and regulations to allow them to expand a little. Increase the number of table games allowed, including the phenomenally popular Texas Hold 'Em. Additionally, allow the casinos to put in more slots. The casinos should also be allowed to put in separate (in every way, ventilation, etc.) smoking facilities. Such small improvements may very well enhance the states take of gambling revenues without resorting to video poker which will increase the cost of the IBG's enforcement budget.

Another area that current gaming law needs to be re-set is allowing some of the race tracks to have slots. In other states they are called racinos. Now that the tenth casino license has been granted, Illinois should amend the law to allow thirteen casinos, three additional ones should be granted to Arlington Park, Hawthorne and Fairmount Park race tracks. Though, they should be smaller in size than the riverboats it would help enormously in making Illinois a great thoroughbred racing state rivaling neighboring Kentucky. Such a law change would also render the ridiculous "Impact Fee" legislation currently tied up in the courts as moot.

There should be strong competition for the public gaming entertainment dollars among the current gaming venues. It is apparent that any increase in gaming will hurt current operations. It is imperative to build upon what Illinois has, not create more problems across a multitude of venues. The Illinois legislature needs to re-set the Illinois Gaming Law in its next legislative session.

Illinois Budget Crisis

2009-06-30T10:34:00.000-07:00

Governor Quinn is an honest and decent fellow. An affable, reform minded politician; after all he, long ago, led the charge toward dumping Illinois' convoluted cumulative voting system. Under such a system, voters elected three state representatives from each legislative district. The theory was that the minority party would have a representative to present their viewpoint. Imagine how this played in the City of Chicago?? Nonetheless, Quinn's leadership helped reduce government by leading Illinois voter's towards dumping this system. That was then, this is now.

Now Governor proposes a budget that both increases government spending and seeks to increase taxes. Perhaps it is time to drop the "Reform" label. The Governor's proposed "temporary" increase in the personal income tax as well as increase the state's business tax is the wrong way to move Illinois forward.

First, to increase taxes during troubled economic times is antithetical to any type of pro-growth policies. A raise in taxes will only continue the decades long slide in Illinois' manufacturing base. Additionally, we will see a continued exodus of retirees to more sunny and tax favorable climates. Neither are a good way to grow Illinois.

Second, all the political posturing about how certain groups of needy citizens are going to get hurt more as budget cuts in social services ensue, is a bunch of nonsense. As the Republican leadership in the Illinois legislature so ably point out, the money is there for these social services to be carried out. The Republicans are also pushing for urgently needed reforms to avoid future budget crisis's. These reforms need to happen now!

Finally, there are other items that can be cut from this budget that would not adversely impact basic governmental functions. Since tax dollars are fungible, The Governor would do well to veto the capital improvement bill, send it back to the legislature and ask the politicos to prioritize the projects. Ask them to save some taxpayer dough.

It is imperative that the politicians in Springfield begin to build a better Illinois during these tough economic times. The state politicos need to build a strong business environment to attract business and industry as well as create home grown businesses. Job creation should be the top goal of our politicians. The first step towards that end is to create a favorable tax climate.

Another area that Illinois needs to strengthen is its vibrant Independent Sector. One avenue to do that is to actually cut funding to social service agencies that are not directly part of Illinois government (ie: grants,special earmarks, etc.). At the same time provide a tax credit to businesses and individuals that make donations/contributions to charitable organizations that provide social services. This would be a great way to build up the Independent Sector while at the same time de-fund the Poverty Industry.

Should the Governor follow the road map above he could regain his Reform label once again. Failing to do so would relegate Illinois to a third rate state.

Stimulus Plan: Good Idea Gone Bad

2009-02-25T14:10:00.000-08:00

The American Recovery and Reimbursement Act of 2009 has ended up being a standard Tax and Spend liberal social welfare bill. With only approximately 12% ($111 billion) going towards actual infrastructure spending. the balance of the legislation ended up being more transfer payments. What could have been a solid piece of legislation with a mix of tax cuts and incentives as well as much needed infrastructure spending ended up being a good idea gone bad.

The first mistake the Obama administration made is painting a broad picture of what they liked and then abdicating Leadership to a Pelosi, Obey, Frank, and Reid cabal of socialist tendencies. This massive measure of $787 billion will weigh the US Taxpayer down for many years to come.

Infrastructure Bonds
An opportunity to significantly improve this nations roads, highways, bridges, ports and waterways was lost. Instead, the vast majority of the monies were allocated to social welfare spending. Consequently, fewer jobs will be created. What the administration and the legislature could have done is create an Infrastructure Bond (similar to the War Bonds sold during WWII) to fund significant re-building and urgently needed new infrastructure projects.

Now, there will be political battles being fought among the states to see which projects will be funded, tightening the federal grip over the states. How will these funds be divided and who will make that decision??? Will states get a pro-rata share of the funds appropriated or will it be solely based on who can exercise the raw political power? It remains to be seen.

I for one will be checking closely on the web-site www.recovery.gov to see where the money will be going.

Sleeper Issues Will Advance in 2009

2009-01-31T15:25:00.000-08:00

Once the political denizens dispatch the TARP and "Stimulus" issues in Q1 of 2009, there will be three sleeper issues that will advance to the forefront during the new President's first 100 days. Among them will be Immigration, Social Security, and Mexico.

Immigration
This will be the number one issue to deal with as we march further into 2009. Pressure will mount as increasing immigration costs accrue to states along the USA Southern border (CA, AZ, NM and TX) amid declining revenues. Watch for Senator John McCain (R-AZ) to pick up the issue and run with it. Republicans should listen to his more reasoned and balanced approach on this matter. A top to bottom examination of the whole immigration process is needed here. What follows are a few ideas that should be considered as plan in formulated.

Create a guest worker program for the approximately 12 million "illegals" that includes a path to US citizenship.
Re-calibrate the immigration visas granted on a nation by nation basis, substantially reducing visa's of all kinds for those coming from middle Eastern countries.
Develop a separate deportation / prison system for those convicted of crimes while here on visa's or illegally. There is no reason for the states to house and pay for these deviants. It is a Federal problem and should be treated as such. Call this the modified "Savage" (Micheal) plan. This will tie in nicely to a stimulus plan. Develop a federal prison in Duluth, MN for those immigrants hailing from Mexico and Latin America convicted of crimes. At the same time develop a federal prison near Deming, NM for all other immigrants convicted of crimes. Of course none of these criminals can be US citizens.

It is very important that Republicans do not cast their lot with the Xenophobic wing of the party. Instead create a welcoming Reaganesque land of opportunity type of measure with strong punishments to those who disobey US laws. A kind of "peace through strength" / "trust, but verify" immigration opportunity plan.

Social Security

This has long been the third rail of American politics, particularly in recent years with the Democrats usual demagoguery on this issue. It is very important for Republicans to remind all Americans that Social Security is supplemental retirement money and not the whole retirement fund enchilada. When FDR created the system in 1935 that was all it was meant to be. It is part of the safety net and much needed when faced with the theft of some citizens money by scoundrels like Bernie Madoff. A few must needed changes that have to be folded into the system would be:

Include Members of Congress, federal workers, and those that make over the current threshold. Put a maximum monthly payout for all retired citizens no matter how much they paid into the system. Call the difference the "Buffet" tax.
Decrease the payroll tax to 5% for both the employee and employer portions. Also, the self-employed would only be taxed at a total10% level. This will free up money for stimulating the economy.
The 5% paid into the system by those immigrants here on "worker visas" would be credited to an account for them under a worker ID number, but would only be transferred back to them under social security when they become US citizens. Otherwise payments made into the system by these workers would be a cost of doing business in the USA.

All other great ideas put forward by the think-tanks and Congressional representatives should be placed on the table for full discussion. It is important to not only keep the system solvent, but to create a successful fall-back plan for all Americans as they move forward in rebuilding their nest eggs after the recent dismal economic performance.

Mexico??? Yes, Mexico!!!

This is the number three issue, rising with a bullet! This past week the Mexican peso got pounded and will continue its free-fall as we move through this business quarter. Consequently, this narco-democracy is on the verge of falling into collapse. Should that happen, expect a tsunami of human misery to cross our borders. The President should immediately dispatch an emissary to Mexico City to meet with its government to purchase a large amount of Oil to fill our Strategic Petroleum Reserve. This will help the Mexican government shore up its budget short-fall before it collapses into total chaos and we will be able to get the oil at reasonable cost ($42.00 per barrel) before its next rise.

Senator Cornyn (R-TX), Sen. Hutchinson (R-TX), Sen. Martinez (R-FL) and Sen. McCain (R-TX) would do well to press the Obama administration on this serious matter. With the recent trade agreements between Russia and Cuba it becomes imperative that we begin to pay very close attention to our neighbors to the South. Not since the Kennedy administration has there been any concerted focus on our hemisphere. The Bush #2 administration is the first since that time that actually tried to make things happen in our Earthly neighborhood. The world is changing dramatically and as we draw down efforts in the Middle-East, the focus should be on our friends in Latin America.

While there is a whole host of issues that will likely rise during 2009, these three issues above will peculate to the top. Republicans would do well to assemble congressional teams to meet the challenges head on in anticipation of a strong come-back in 2010. Strong action on these matters will help set the table for a solid majority in the next decade.

Reject the OPR Stimulus Plan

2009-01-18T10:30:00.000-08:00

The stimulus plan offered up by Congress is not that of the President-elect Obama's, but that of Obey (D-WI), Pelosi (D-CA), and Rangel (D-NY). While, Mr. Obama and his economic team have provided some broad strokes, this plan is purely a liberal democrat plan--the OPR stimulus plan. David Boehner (R-OH), House minority leader, almost had it correct in calling it the "OMG" stimulus package. Republicans would do well to reject 70% to 80% of this hodge-podge of social welfare, transfer payment and useless spending provisions of the measure. Republicans must offer a substitute measure and get a vote on it.

How is this Change???
Much of the measure, as released by David Obey's (D-WI) Appropriation committee, is the same old stale crap on a paper plate served up by the liberal cabal during the Reagan years to the tune of $825 billion dollars. Charlie Rangel's (D-NY) Ways and Means committee has offered some compelling tax cuts that actually will provide some stimulus to a weakened economy. The only aspects of the plan that will have a stimulative effect, from a Keynesian economic point of view, are the proposed $122 billion dollars of spending on roads, bridges, mass transit, waterways and the energy grid. One could throw in the $102 billion proposed for "workers" in a further strengthening of the existing safety-net during these tough economic times. The rest of the proposal reads like an appropriation measure that had not yet been met during earlier administrations going back to the Great Society of President Lyndon Johnson. How is this Change??? Unless the Obama team offers up some real change, it could become apparent that the left-wing of the democrat party will attempt to ride roughshod over the West-wing. And this mutant bird will not fly.

What Republicans Must Do!!!
Congressional Republicans must offer up a substitute measure and get a vote on it!! Think 2010.....

Go along with much of the democrat Ways and Means committee provisions regarding business taxation (ie: bonus depreciation, five year carry back provision, and an increase in small business expensing).
The Education credits and first-time home buyer provisions will have a stimulative effect as well.
Lower the capital gains tax to 10%. This can be strongly stimulative through incentive to take risk and create jobs.
Create an expensing provision that allows Research and Development expenditures to be expended at 120% of actual costs. This will reward both small and large businesses for their ingenuity and provide an incentive to risk taking that will create additional jobs.
Reduce the top corporate tax rate to 25%. Better to free-up capital for private-sector jobs than to create governmental employment for piggies to wallow in.
Reduce the payroll tax to 5%, both the employee and employer parts of this tax. This will provide a strong stimulus and also move the whole social security system re-tooling to front and center.

The OPR Stimulus plan offers very little in the way of stimulus that will create employment and economic growth. It will be far better for the Republicans to embrace a plan filled with lower taxes and other tax incentives to get capital flowing and unleash the entrepreneurial spirit of America. This is the only way out of our current economic doldrums. Press hard on these pro-growth policies. Let the young President Obama be the final arbitrator that makes the determination of what is good, bad and ugly in the overall package. And with some "audacity of hope" we might have another "seven fat years" similar to the Reagan era.

Time to Add another Illinois County

2009-01-08T18:48:00.000-08:00

With the State of Illinois greatly embarrassed by the antics of the current Governor, as well as his impeachment trial ready to begin later this month, it is high time for the six townships of Northwest Cook County to finally secede from Cook and form a new county. The impetus for this is the continued corruption that oozes out of Cook. The six Northwest Townships (Barrington, Palatine, Wheeling, Hanover, Schaumburg and Elk Grove) should separate themselves from the conflagration of graft and theft of public confidence from a corrupt and practically bankrupt Cook County.

Should some or all of the Northern Townships wish to join them, all the better.

There are a number of reasons why it is important to give this full consideration during these tough economic times not the least of which are:

High taxes will continue to chase business and commerce from the Northwest Suburbs.
Since Cook County is dominated by the "pay to play" Chicago politicians, short shrift has always been given to the Northwest Suburbs and various public infrastructure projects.
Municipalities in the Northwest Suburbs may be forced to pay higher interest rates on bonds due to the Cook County corruption machine.
Now is the time for Northwest Suburban businesses to wake up and sever the ties to Cook County and its use of their tax dollars to fund Chicago based largess.

There will be a number of considerations to develop a new county; not the least of which would be its naming. I would suggest either Lincoln or Reagan both of which would be proud names for a county that would have the highest valuation outside of that of Chicago. Another matter that would need to be discussed would be the transfer of current Cook County assets within the six township area to the newly formed county. In order to foster growth and job creation I would recommend reducing the number of property classifications and the corresponding assessed valuation. They could be as few as five: Commercial [(office, retail, restaurants, etc.)--30%], Industrial [22%], Residential [20%], Agriculture [12%], and Vacant undeveloped land [35%]--to encourage development.

Its time for Northwest Suburbanites to wake-up and smell the Starbucks before more and more of their hard earned incomes are picked from their wallets by Chicago politicians seeking to line their own. Start the process Now to form a new county in Illinois.

The Auto-Industry Cure

2008-11-23T11:32:00.000-08:00

As the big three entered their plea for help on Capitol Hill, their gleaming corporate jets stood ready to whisk them back to their corporate headquarters. The media pounced on this and America became outraged. Who is running their P.R. operation??? This should be the first department within each firm that should be gutted. While most on Capitol Hill favor some type of assistance to keep them on life-support through these illiquid times, they have to clearly show the Capitol Hill crowd as well as the American public that they have a plan for long-term survival. There is no question that most of us here in the Midwest want to see them survive.

The Nardelli Idea
One of the not much noticed, nor talked about ideas that come out of the Capitol Hill hearings was one put forward by Bob Nardelli (CEO--Chrysler). He opined that perhaps a National Lab could be created to develop alternative fuel sources for the transportation industry. His reasoning was that it didn't make much sense for each of the big three to push R&D funds into developing alternative fuels when we could get economies of scale by funneling some cash to one lab and transfer the technology. Good idea, but why create another government lab when one of our existing labs could develop a technology. The talent pool is already there at Fermi, Argonne, Los Alamos, or Sandia.

Ford
Already on its way to becoming a winner. I suspect that it is just a liquidity problem as the banks tighten their lending programs and the market for commercial paper is not particularly strong. Should consider having its finance unit apply to become a bank and seek Troubled Asset Relief Program (TARP) funding. Treasury could package a nice deal that would benefit the taxpayers and help Ford provide funding up and down its supply chain and to its dealer network.

Chrysler
Can easily be a winner on its own. It has some of the best management and financial minds with Cerberus as the private equity firm that owns this puppy. Again, Chrysler can have their financing unit apply for bank status and tap TARP funds with strings attached. Like Ford, such a move could eventually create a self-sufficient credit facility to insure their long term survival.

GM
The biggest loser among the bunch, but necessarily a lost cause. It is well past time to break this monster up. Here too, the GMAC could apply for bank status and then tap the TARP funds to ensure liquidity is injected into their system. Other steps that will need to be made if we are to see its survival might include the following:

Rick Wagoner (CEO) must go. This guy proved to be, through his utterly abysmal performance in testimony on the Hill, that he is a bobo. Where did they recruit him??? Off the ninth hole at the nearest country club??
Put a dagger in the Pontiac brand. Transfer the TransAm / Firebird nameplates to the Saturn division.
Spin-off the Saturn brand as a "employee-owned" company. Perhaps Kirk Krekorian through his Tricinda Corp. could re-emerge as a major investor and put this unit on the road to profitability.
In recent years the Buick brand has become a solid and creative unit that has tremendous market share in China of all places. This division could also be spun-off to profitability. Perhaps Carl Icahn and T. Boone Pickens could team-up to place solid management in place to run the company. It would give Boone an outlet to develop a top-selling vehicle that runs on nat-gas.
The new GM could be composed of Chevorlet, Cadillac, and Hummer. If the leftover management can't make with whatever funds are made available to them as well as their highly touted Chevy Volt, then bankruptcy will be the road they will need to travel.

UAW

These fellas need to get out of their 1930's thinking and start to think competitively. The only other option will be to get run over by the global economic pressures. Their goal should be to become a stakeholder in the survival of each of these companies instead of an impediment to their economic viability. This is a classic case of Union leadership out of touch with those that work on the factory floor. The goal here is to create and preserve American manufacturing jobs not play the "pta" game. The usual featherbedding, instituting of stupid work rules that impede productivity, and labor banks must go.

Government

Get out of the manufacturing business. Stop trying to micro-manage how autos should be made, what standards for fuel mileage and safety need to be met. There is a viable independent sector that educates consumers on what are the best automobiles available for purchase. If a manufacturer wants to create a Yugo, then they will fail !!!!!!

It is hard to believe that in the early age of the automobile there were more than 2500 different "manufacturers" and now we are down to three. It is incumbent upon all the players in this high-stakes game to insure their survival. But it will have to be done with pain, sweat, and creativity. It is time for this industry to embrace the twenty-first century or surely it will go the way of the Checker, Cord, DeSoto, Duesenberg, Hudson, Nash, Packard, Studebaker, Stutz, and Tucker to name a few of the glorious brands that drove American roads.

Capital Market Angioplasty

2008-11-20T12:43:00.000-08:00

Listening to the TARP (troubled asset recovery program) testimony the other morning on Capitol Hill by the Big Financial Three [Paulson (Treasury), Bernanke (FED) and Bair (FDIC)], I was most impressed by both Benanke and Bair while concluding that Paulson was nothing more than a blowzy bobo. This guy was once the CEO of the once venerated Goldman Sachs?? He is a better obfuscater than most of the blowhards on Capitol Hill. While Paulson has made some tweaks to the TARP following on his interpretation of the use of the funds, which will eventually save the taxpayers some money, he has steered away from the original intent of the legislation. The overriding intent was to purchase the "toxic" paper thereby providing additional liquidity to the financial markets.

When Paulson was asked, quite simply, what portion of the TARP funds had been used to deal with the "toxic" paper? His reply was that his department was working on it. To completely ignore the original legislative intent and develop his own program is extremely egotistical. It is no wonder Paulson is referred to as "King Henry" in many financial circles. The "King Henry" tag is further evidenced by his calling the big six or eight bankers into Treasury and force them to take TARP funds. At the least at that time he should have delegated the authority to the big bankers the task of utilizing a portion of the funds forced upon them to purchase some of the "toxic" papers. This could have been the start of the foreclosure mitigation goal.

Along the lines of the Sheila Bair (FDIC) mortgage forbearance program could have been initiated to re-liquefy financial markets and at the same time enable some homeowners to hold onto their homes during their financial distress. Further development of a forbearance program could include a BLM (big long mortgage) of the type the esteemed financial planner, Ric Edelman, advocates. These newly inked mortgages could then be backstopped by the government similar to the SBA's (small business administration) 504b loan program provided to small businesses. Under such a mortgage program the government can guarantees 50% of the loan, the big bank is liable for 40% of the loan and the mortgagee (buyer) has 10% at risk. This way everybody has skin in the game.

What is necessary is for capital markets to undergo this type of angioplasty to begin to liquefy the financial markets. Bankers can begin to have the confidence to make prudent loans to consumers and small business people and get this economy rolling again. "King Henry" needs to put down his scepter, roll-up his sleeves, stop making speeches all over the country, and get to work.

Xenophobes Partly to Blame for McCain Loss

2008-11-09T12:38:00.000-08:00

Aside from the extremely strong headwinds (unpopular Bush, economic meltdown, etc.), John McCain faced, the Xenophobic wing of the Republican party should share the blame for his loss. The loss of the states of Florida, Colorado, New Mexico, and Nevada is inexcusable. In politics, perception is reality. Today there is a strong perception that the Republican party has a significant mean streak because of the many strong xenophobic voices on the immigration issue.

In 2004 Presidential Election, nationally, latino voters went 53% for Kerry and 44% for Bush. In 2008, the latino vote went 67% for Obama and 31% for McCain. Although, McCain had a more rational approach to immigration reform, there is a strong developing perception within the latin community that the Republican Party is menacingly mean spirited on this issue. US Senator Mel Martinez (R-FL) echos this analysis. The xenophobic label the Republicans have been tagged with transcends the latino community; what of other immigrants from other countries yearning for freedom and prosperity? Did you know that in Poland they call the Chicago Metropolitan area Polonia? That is because the Chicago area has the largest polish population outside of Warsaw, Poland. Can this xenophobic label be a reason for the loss of three Republican leaning US house seats within the last eight years? Could be. A more measured approach to immigration reform could greatly improve the Republican image within all immigrant communities. As newly elected Republican Congressman, Aaron Schock (R-IL) has stated, "We are a nation of Immigrants", implying that Republicans should tread lightly on this issue.

Republican Opportunity toward Immigration Reform
While the immigration issue will undoubtedly be a top priority of the new Obama administration, Republicans have a solid opportunity to take a meaningful and measured approach toward solving the issue. They must propose a reform program that is a win-win situation for all. Among the key elements that it should include are:
1. Yes our borders need to be secured. And that means all borders; Canada on the North, Mexico to the South, the Atlantic shipping ports to the East and the Pacific shipping ports to the West, not to mention the shipping ports in the Gulf of Mexico.
2. Create a solid assimilation program for those already here illegally. It should never be advocated that they just be thrown out of the country. Every time I hear such a strident message, I am reminded of that awful movie Gangs of New York. Use your imagination on that. Republicans need to approach those hardworking, taxpaying, and law-abiding illegals in a more helpful manner.
3. Create an expanded worker visa program who wish to work here in the United States and eventually desire to seek US citizenship. And yes, many foreigners still desire to come here to become part of the American dream. Whether they come here to escape the narco-democracy of Mexico, escape the impoverished countries of Asia, move from the hard-life of Central and Eastern Europe, or escape from the increasing socialistic and tyrannical countries of Latin America, all that seek to work hard and contribute to a prosperous America should be allowed to do so.
4. Develop a national immigrant ID that allows those gainfully employed to stay here without any extraordinary punitive punishment for coming here illegally. Obviously, we should establish certain conditions that must be met and then monitor whether they are being met. These conditions might include; (a) must be employed, (b) must pay taxes, (c) must be law-abiding and not have a criminal rap sheet of any kind, (d) not seek government assistance of any kind, (e) must take English immersion classes.
5. Penalties should be imposed for those not following any newly promulgated immigration laws. And they should be enforced once established.

Part of the lure of the Republican Party is its principles especially evident during the Reagan era. One of the strongest has always been America as the Land of Opportunity. This opportunity should be extended to all immigrants presently here and all that will follow.

Action Now Urgently Needed on Federal Budget

2008-11-01T17:22:00.000-07:00

As we enter the "Age of American Socialism" neither candidate for President is talking about what kind of cuts they would make to keep the ugly head of inflation from rising after all their campaign promises. Whether McCain wins or as the polls, pundits and prognosticators predict, Obama wins, both will need to deal with a bloated federal budget. Herewith are some areas that can be cut in order to secure a better future for our country.

Eliminate the Department of Education
It makes no sense to send our hard earned monies into Washington, D.C. only to have the Feds skim their cut and re-deploy what crumbs are left back to the states to further whatever education goals legislated by Congress. All of the loan and grant programs can easily be administered by the Treasury. Since that department has now declared itself as the official lender of the U.S. Government. The rest of the programs deployed by the Educrats can just be axed. Since the department was originated during the Carter administration, all of the great innovations in Education have originated at the state and local level. This is where the action happens, this is where it should stay.

Cut the State Department by 25%
The next Secretary of "foggy bottom" can figure out where specific cuts should occur. He or she can begin by throwing a bone to the Jeffersonians that continually warn against foreign entanglements and stop funding programs that aid nation-states whose purposes run counter to our national interests.

Cut the Agriculture Department by 20%
Whoever the Ag Department Secretary might be they should embrace free-market principles and shrink this department accordingly. We are no longer an agrarian nation, though we can be considered the bread basket to the world. Fewer and fewer people are involved in agricultural as technology and productivity have steamlined those numbers. Clearly the bloated must go.

Cut the Defense Department by 10%
Begin by rooting out the wasteful spending within. Then reduce the number of troops based in foreign lands. If a country seeks our continued presense there, then they should be willing to pay for that privilege.

Though it is unlikely that the current congress, even after the election on Tuesday will make cuts such as these, it is incumbant upon fiscally conservative back-benchers to continually press for such cuts. Someone has to sound the alarm that the U.S. Government debt time bomb will soon explode our Nation into dust.

Illinois Transportation Policy Key to Economic Growth

2008-08-31T13:11:00.000-07:00

If a second stimulous package is put in play by Congress later this fall it is likely to include monies for infrastructure work. It is imperative that Illinois utilize any funding it receives to improve its overall transportation system. A comprehensive transportation policy for Illinois will lead to economic prospertiy.

The Chicago Metropolitan area must continue to maintain its dominance as a Transportation hub for the whole country. In order to do this there are several projects that must be started and completed over the next few years.

Elgin O'Hare Expressway
Must be adequately funded and completed. As the O'Hare Modernization program moves forward, this particular aspect of that program must be included and completed. This will benefit the entire region by moving commerce and workers to and from the communities it presently serves as well as those communities it will include once this seven mile stretch of road is lengthened.

Metra Upgrade
The extension of the system to the "Ex-urban" communities in the Western reaches of the Metropolitan area must be contemplated, planned and completed. In order to continue to have a strong and job producing economy this type of pro-active mass transportation project has to done. More and more people are going to utilize this sytstem as a means to get to and from work in the City of Chicago and the suburban area. As gas prices continue to move higher it becomes all that more important.

The EJ & E Rail
In order to transport workers and commerce around the outlying suburban areas, an agreement must be reached with CN as it moves forward in its purchase of this rail and the RTA to provide for the proposed Starline route and the villages and cities it would serve. Again, as the number of workers closely examine the use of their automobiles to get to and from work, governmental leaders need to act to provide mass transportation as a meaningful, reliable and efficient alternative.

The Pace System
There are a number of ways this system can be improved to provide an important link in the overall mass transportation system. One of the principle foci of the system must be to get workers to and from work. Continued business growth demands this. Among the projects/plans that urgently need undertaking include:

Expansion of the system to include other neighboring suburban areas where existing routes currently are in place.
Improvement and placement of bus stations to serve a larger portion of the population.
Design better, well located and safer bus stops for consumers that utilize the system.
Enhancement of the "Shuttle-Bug" system through third party providers. The shuttle bug system has to focus on bring people to and from the Metra train stations to commercial and industrial areas of the suburban communities.

Funding

No one likes to see tax increases, but in order to greatly improve Illinois overall transportation system this will have to be on the table. What could be considered is a 4 cent tax per unit of energy measurement. Not only should gasoline be taxed, but as other fuel sources come online, (ie: electric, compressed natural gas [CNG], etc.), they must be included in the funding formula. These funds collected should be divided equally (one penny each) to the city/village, county, state, and mass transportation system within the area that they are collected from. The funds must also be put into a "lock box" to be used soley for roads and the transportation system itself.

The City of Chicago must also pony up for improvements to its roads and CTA system. As State Senator Chris Lauzen (R-25th) so deftly points out, the City of Chicago does not invest nearly as much as other major metropolitan cities do in their public transportation systems. Additionally, better managment of its system must also be part of an overall plan to improve and adequately fund its transportation needs.

All of the components above need to urgently considered and acted upon in order to improve the economic well being of the whole metropolitan region. Inertia in these areas will only make the Chicago--Rockford megalopolis less attractive to business and industry. Aggressive improvements in all areas above will lead to the retention of existing businesses and attract additional businesses to the region. Job creation is critical to a strong economic future for all of Illinois.

McCain Can Put This Away

2008-07-19T11:38:00.000-07:00

The real political season begins in earnest after the Labor Day weekend. However, John McCain has the opportunity to put the game away prior to that date. With all the talk in Washington, D.C. about a second stimulous package, Senator McCain has a clear opening to introduce his own stimulous package and battle for its passage along the summer campaign trail. In business as in politics, no risk, no reward.

The Plan
Give Every Working American a Raise!!!!
With a tip of the hat to the late Daniel Patrick Moynihan (1927-2003), reduce the payroll tax (social security) to 5%. This will instantly put money into the pockets of working men and women. No waiting for checks here. If there is strong opposition to such change due to revenue projections, bring in federal employees, members of congress and high wage earners into the system. FDR set the Social Security system up in 1935 as a supplemental retirement plan. Note the operative word as being "supplemental". Face it, the system is part of the government safety net. Make the forced savings a reasonable amount and put more money into most American's pockets.

Reduce the Capital Gains Tax to 10%
The stimulative effect of reducing the Cap Gains tax to 10% would be immeasurable. Make the cut retroactive to January 1, 2008. Many Americans holding assets for more than a year can place them on the market without having to worry about eggregious taxation, that sometimes enters into the decision making process. This move alone could be very stimulating.

Allow an R & D Expense of 120%
Again, allow business to take a research and development business expense retroactive to January 1, 2008. This a great job producing measure. Imagine the effect it would have in the fields of Agriculture, Energy, Medicine and Technology to name a few. A strong forward moving, pro-growth policy like this will help maintain America's #1 position as the most innovative and productive nation on earth.

Extend the Bush Tax Cuts now!!!!
Similar to negotiating a big league contract before its expiration, extend the cuts. Don't play the political posturing game. Do it Now! Bring the dems on board by expanding the income brackets and truly give the middle-class the tax cuts they are constantly harping about.

Should McCain introduce his own stimulous package containing these four components and then masterfully guides it through the Senate and House, it would provide him with the surge he needs to set-up shop in the White House in 2009.

In other words, Game Over! McCain Wins.