Krugman get it all wrong

May 20, 2012

Krugman Dead Wrong!

I read an editorial by Paul Krugman in the Times-News last Monday which was titled; “Structuralists won't take no for an answer”. He opened by quoting a paper that appeared in The American Economic Review in 1939. The gist of the article was that America's continuing high unemployment problems (remember the great depression was in it's tenth year) were not amenable to any quick or easy solutions. The author argued that the problems had deep “structural” roots that were causing the continuing lack of job creation. Mr. Krugman then goes on to discredit the article by pointing out that the structural defects began to quickly be repaired a few months later when WW II broke out. America began a period of war preparations that ended up leading to a decades long period of massive job creation. Thus, according to his views, the problem was solved. His recommendation to fix our current problems, not surprisingly, given his rather liberal leanings, to have the government massively spend in order to stimulate growth and thus create jobs. He belittles those who worry about our future children and grandchildren. He argues that we need to spend our energy worrying about the current generation instead of the future, and those who do the latter are actually irresponsible!

Mr. Krugman goes on to say that “every time some self-important politician or pundit starts going on about how the deficits are a burden on the next generation, remember that the biggest problem facing young Americans today isn't the future burden of debt...a burden, by the way, that premature spending cuts probably makes worse, not better. It is, rather, the lack of jobs, which is preventing many graduates from getting started on their working lives.” I almost forgot that he also said that the long term view by structuralists only serves to inflict pain on today's workers and the poor.

Is Mr. Krugman blind? Does he not see that WW II was an incredible tragedy of epic proportions from which America was the fortunate economic beneficiary. Globally many millions of human beings lost their lives and even more were left in deep poverty. America was left in the fortunate aftermath of not having it's manufacturing capacity negatively affected. We rode the resulting wave of growth as the rest of the world rebuilt its manufacturing capabilities for many decades following the war. This period fostered the improvement in the lives of what was likely the golden age of all times for the middle class in this country.

So, Mr. Krugman wants us all to forget the long term and just give the government the authority to create new stimulus programs because it will, according to him, fix everything right now. (Do you hear the sound of that can being kicked down the road again?) Has he conveniently forgotten the stimulus spending surge that our President led when he was elected? How well did that work? Others on the progressive side will argue that we didn't spend nearly enough. How much is enough? What happens if we take the additional gamble and it doesn't work like it hasn't worked? Doesn't he see that we have a national debt that is now greater than our anemically growing GDP? What about our unfunded entitlements that now dwarf the national debt by at least a factor of seven-fold? Does he understand that too many of our citizens have also buried themselves in such personal debt that most can no longer remotely consider continuing their prior levels of debt financed spending? Does he see the nearly one trillion dollars in student loan debt that many of our current citizens have accumulated in an effort to better prepare for the future? Does he see the situation rapidly unraveling in Europe? We all know that places like Greece, Italy, Ireland, Portugal, and Spain are in imminent danger. Most experts think they put all of Europe at risk? They are all buried under decades of entitlements that could never have been afforded long term. Don't forget that European countries collectively are major trading partners with America. As their economies worsen, how will that affect our chances of pulling out of our economic malaise? Finally, he seems to ignore the reality that continuing to borrow, print, and tax as our only solutions cannot go on forever. Sooner or later we, as Europe is learning, will have to face the harsh truth that their are no free lunches. Personally, I vote for facing the truth now, and for all of us to share in the sacrifices that will be necessary...rich and poor alike. Mr. Krugman reminds me of the Ostrich which is known for its proclivity to bury it's head in the sand in order to deny danger. He's even worse though because he wants us to bury our heads in the sand too! Obviously some miracle of technology might open up future job opportunities that I just can't even imagine, however, as great as miracles are...they are impossible to forecast. Perhaps I'm just missing his real point which is that we need another world war to fix everything. Let's hope and pray not!

These are this structuralist's opinions. What do you think?

Mike Tower

Citizens Against Politics As Usual

Lee's Political Opinion

My Generation of American's Technology Journey

May 13, 2011

My generation’s incredible technology journey:

I read a story many years ago about a news reporter who was interviewing ordinary people regarding their personal opinions about the most incredible technology recently developed. As expected, many identified things like man walking on the moon, television, computers, medical technology, etc. One fellow, a street sweeper, thought about the question for some time and then responded that it had to be the thermos bottle. The reporter, who was quite surprised, told the man that he must not have understood the question. The man assured the reporter that he did indeed understand. He went on to explain that his wife packed his lunch every day. In the summer when it was hot outside she always included a thermos of iced tea, and then in the winter when it was cold she always included a thermos of hot soup. The man went on to say that when he opened the thermos the iced tea was always cold and the soup was always hot. The reporter then said…so what? The man replied, don’t you see, how does it know?

When I was born we were quite poor and the only technology that we had in our home was one radio, a wired telephone that shared a line with several other neighbors, electric lights, and an ice box that had to be kept cool with ice that was delivered to our home. As small children my mother heated our bath water on the stove and bathed each of us in the kitchen sink. We didn't even have an indoor toilet.

Today our lives includes the most amazing technology imaginable. Our automobiles are technological miracles that are increasingly controlled and operated by powerful small computers. We use GPS systems instead of roadmaps, satellite radio, rear view cameras, air bags everywhere, blind spot detection systems, electronic skid controls, ant-lock brakes, even systems that nudge us to stay in our own lanes. Recently I received a phone call from my car maker’s service department telling me that my car had notified them that it was due for service. I took the car in and joked with the service writer about the phone call. He then told me that the car had indeed notified them that it required service!

We are rapidly moving from paper to electronic reading devices. Our entertainment from music, movies, and television is increasingly becoming electronically controllable and user friendly. CD’s, DVD’s, cassettes, etc. will soon be gone as all forms of storable media are digitized. We no longer have to watch television programming when it is presented because of the magic of video on demand and digital video recorders.

Our connectivity to information and each other is increasingly and likely unrelentingly going to be via electronic media. Who doesn’t have a cell phone on them all the time now? These phones themselves are increasingly becoming “smarter”. In fact, I am told that a new smart phone has more computer power than all the computers NASA had when Neil Armstrong set foot on the moon in 1969. We stay connected with extended family and friends via technology. We are increasingly using electronic devices to pay our bills, and most importantly, to tap into the amazing amount of information that is so easily and freely accessible on the information highway known as the Internet. I do not make any major purchases without conducting product quality and pricing comparisons via the internet. My family no longer allows our health care to be solely managed by the health care providers and insurance companies. I am adamant about being an informed consumer, especially in this critical area. I deeply value our health care providers, but I want to participate in my family’s health care.

Today, if you can imagine a question on about any topic…you can find information readily available. Of course, you have to be careful because all information is not 100% reliable. As long as you are just a bit careful and have some degree of patience and discernment, you can find accurate and objective guidance.

The newer phenomena of social media is being increasingly utilized by even the older generations in order to better keep track of what’s happening in the lives of friends and loved ones.

Sadly some among our older generation continue to resist the technology that is so capable of enriching their lives.

I suppose part of that is just human nature. I was talking to my wife the other day about buying an electronic reading device for her to use for most of her reading. She replied that she just enjoys holding the real reading materials in her hands. I could just see her a few thousand years ago saying; “I don’t care if papyrus has been developed, I just like holding these stone tablets in my hands!” Of course I did not say that out loud!

I have no doubt that the availability of information for the masses at warp speed will result in the creation of amazing solutions to many problems that have seemed unsolvable. However, in the short term, the resulting loss of jobs due to technology induced automation will continue to be horrendous.

As usual, these are just my opinions. What do you think, and what technology has impressed you the most? Can you even imagine the technology of the next ten or twenty years?

Mike Tower

Hendersonville

Please also visit:

Citizens Against Politics As Usual

Lee's Political Opinion

An Ordinary American Citizens Ideas For Fixing America

May 6, 2011

A Citizen's Ideas For Fixing Our Nation's Problems

I have often been asked to stop just pointing out all of our nation's problems and complaining about the condition of our country and instead suggest some fixes. I always responded by saying that any of us ordinary citizens could come up with a pretty good list of fixes if asked. Recently an 81 year old pen pal of mine named Betty Leggitt sent me the following as her ideas for fixing the good ship America. I was impressed by her common sense and easily understood suggestions. I asked her permission to publish this and to name her as the author. Fortunately she agreed and so here's what Betty thinks need to be done. My point in sharing this is to simply point out that many voters and all of our elected certainly understand what needs to be done...they simply don't have the courage to confront these problems with any real actions. Too many voters on each side are so rigidly attached to their party of choice that they can't even consider a more collaborative approach. For our politicians in Washington, getting re-elected is far more important than fixing the many challenges that will eventually result in great harm to our children and grandchildren. Betty knows this, I know it, and I suspect that most of you do too. What ever happened to common sense? My thanks to Betty.

Dear Mike, These are my ideas for fixing what's wrong in America today:

Do not excuse the citizens from responsibility for our broken government, too many have been buying into the nanny state of big government by asking the government to provide, instead of being self sufficient. After decades of this we are now in a crisis situation and government, as we know it must end, be restructured and downsized. The National debt is in the stratosphere with no indication that this Administration and Congress have any intention of stopping the rise. Our credit rating has been lowered with indications that it may drop again. This Administration has no budget and has not produced one since taking office.
Not all voters try to educate themselves on who they vote for which leads to the election of politicians that are unqualified for the office. Greed, corruption, and ignorance will eventually bring down America. Constant monitoring and vigilance will slow down the greed and corruption, which has been a problem since time began. However, ignorance is not a sin or a disease and can be cured but only if the desire is there to be cured.
The race card and class warfare are tearing the country apart. Respect for each other has disappeared and most of this has happened because of the political rhetoric, the news media, and the entertainment industry. Social Security , Medicare, Medicare Part D all must be restructured. Our life span has gone from 61 to 80 since 1937 - change the eligibility age to reflect the increase in life span. Medicaid, Food Stamps, Welfare and Disability: More oversight is needed to assure these programs are not being abused.
Close all federal tax loopholes. Simplify the code so that most people can file their return without the expense of a CPA.

Department of Education: Eliminate this entire agency. Education must be returned to the States. County schools will bring the parents back into the education system, provide a better curriculum, safer schools and involvement of local people in the education system. Mega Schools and busing should never have been instituted, this was social engineering at the expense of quality education.

Massively reduce regulations and rules. Too many agencies have been granted too much power to regulate and create laws that make it impossible to start up new businesses, and allow established businesses to grow. This burden has caused some businesses to fail. All rules, laws,and regulations by all agencies must be discarded if they stand in the way of progress. There is a need for rules, regulations and laws but they must be to only to protect the people, not hinder progress. Duplications of agency services must be eliminated. Close all unnecessary offices.
Earmarks must not be allowed. All requests for money from the Treasury must come without earmarks. Each request must stand on its own merits with clarification and justification for the expense.
Lobbyists have far too much influence. They must be required to reveal to the citizens who they represent, their agenda, and who they are seeking audience with in Congress.
Political correctness must be curtailed. This is just a way of avoiding the truth. Stop this nonsense.
No more bailouts. We have in place a very good system - Bankruptcy, It has worked for individuals as well as businesses and will continue to serve the purpose of helping people and businesses come back to solvency.
Government sponsored businesses must never be allowed. There should never have been, and never again should the government be in the venture capitol business. That is gambling with tax payer money.

Sincerely yours,

Betty Leggitt, Columbus, NC

I could add to this list of ideas...but my number one choice is to replace all incumbents and start fresh with new lawmakers...they could hardly do worse.

These are Betty's ideas. What are yours?

Mike Tower

Hendersonville, NC
Citizens Against Politics As Usual

Lee's Political Opinion

Gay Marriage in America

April 22, 2012

North Carolina Marriage Amendment

North Carolina has a proposed Amendment to the state Constitution that would add to an existing state law that prevents anyone to marry anyone from the same sex. The following are my opoinions and thoughts on this complex topic.

Many seem to have deeply polarized opinions on this topic.

In the middle of my career, the pharmaceutical company that I had then been employed by for nearly 20 years transferred me to New York City to be the Director of Marketing for a wholly owned cosmetics subsidiary named Elizabeth Arden. I was suddenly in the fashion industry instead of health care. I clearly remember wondering how I was going to explain to my 10 year old son that instead of saving lives I was now selling lipstick. Please picture this mid-western hick who had never been to New York City and knew nothing about makeup and cosmetics trying to run the marketing efforts for this major cosmetic company. The six years I spent there not only turned out to be among the most enjoyable of my career, and I even managed to convince myself that instead of saving lives I was now beautifying America!

What does all of this have to do with the marriage amendment? Well, another part of this job required me to interact with a large crew of world-class male makeup artists who worked for the company. They were almost all gay...and openly so. Initially I was very uncomfortable working with them. I'm normally a very friendly outgoing person, but I was afraid that some of them would misunderstand and perhaps think I was interested in them...in that way! Finally, one young fellow approached me and asked me if I was prejudiced against gays. I stammered a bit and told him that I hoped not, but had to confess that I just didn't understand much about the gay scene or how or why one chose to be gay. He told me that it was obvious to all of them that I was confused and he wanted to share his personal story about how and when he discovered he was gay. It was a heart-wrenching and very sad story of pain, persecution, and even of losing his relationship with his family. He encouraged me to ask some of the others in this group to share their life story about being gay. I did exactly that and not one person I ever asked that question told me that they had simply decided to become gay...they all said that they were born that way. Most would say that if it were a simple choice...they would never have chosen it because of the pain and suffering that went along with being part of this heavily persecuted group.

Here are my opinions on this amendment that will be on the May 8 ballot. First, North Carolina already has a law that defines marriage as being between two people of the opposite sex. Second, a couple of my lawyer pals tell me that the amendment is so loosely written that it will absolutely be challenged in the courts regarding its constitutionality and will likely be overturned. The many years that this will then take to work through the legal system will cost the taxpayers many millions of dollars that we cannot afford. For these two reasons alone I will vote no.

Perhaps more importantly, while I believe that any religion or religious group has the right to determine who they will or won't allow to be a member of their church or marry, I do not believe that any governmental body, be it state, local, or federal...in most cases...has that same right. It also seems interesting to me that many of the folks who are supporting this amendment are the same folks that keep preaching for less government intrusion...and yet here they are asking for more. If you believe that folks who are gay generally chose to be that way, then you certainly have a right to be personally against gay marriage. After all, who really pays attention to that old “judge not lest ye be judged”. I had an opportunity to attend an excellent lecture on this topic by our own local Rabbi Phillip Bentley last week. He said that in his life-long experience of counseling and personally knowing a significant number of Gays...he had never known a situation in which they chose that behavior. He sincerely believes, like I do, that the vast majority were born that way, and that they too are children of the same God and deserve the same legal marital rights as the heterosexual majority. Maybe it's not called marriage, but it certainly should encompass the same civil and legal rights of any heterosexual couple...at least in our opinions. Finally, if you are a Christian, I hope you will pause before deciding how to vote and ask yourself...what would Jesus do? Maybe more importantly...what would he want you to do? After all, most, if not all, Christians believe that God is our ultimate judge and that after we pass on we will be judged for our sins while on earth and rewarded or punished appropriately. If we really do believe in God being our ultimate judge...why do we seem to need so desperately to judge others ourselves? In this particular situation, it seems to me that this amendment is just one more example of mankind trying to play God. Do you really think he needs our help?

These are my opinions. What do you think?

Mike Tower

Hendersonville, NC

Please Visit:

Citizens Against Politics As Usual

Lee's Political Opinion