Brain-Jockey

I Want My SUV: More Unintended Consequences On The Horizon

Written by Audrie Zettick on April 27, 2009

Being involved in government policy making is like watching sausage being made: after you’ve seen it done, you want no part of it. 

Guess that’s why I managed to escape my policy stints in some of the world’s largest government bureaucracies with a modicum of increased wisdom based on experience and a healthy dose of skepticism about government.  Among my lessons: 

Always assume your first try at a new policy won’t go as planned.  Triple the probability of it going wrong if you’re hell-bent on rocketing warp speed toward change. 

For good or ill (and usually for ill), there will be unintended consequences. Among many misfires we have had this year:

·         Banks on the dole.  Call it corporate welfare, bailout or stimulus, I was amused to see the supposedly strange (but predictable) behavior of some financial institutions: buying jets, remodeling offices and the like. (Reminder at old Slate article here:  I See Dead Bankers! Wall Street has become The Sixth Sense-filled with corpses who think they’re still alive.)

·         A knee jerk reaction as the U.S. House passed a bill requiring a whopping 90% tax on bonuses at AIG and other institutions that took TARP money–but it turns out many of these folks were working under a retention contract which promised them pay after they stayed a set length of time…and many were with the financially-healthy subsidiaries of AIG. So are we surprised when the talent needed at companies like this flee? Or that other financial institutions, hesitant to face micromanagement by the feds are scurrying to pay back TARP funds rather than stick with the Obama plan?  Oh, then there’s that problem with the bill being unconstitutional.

·         U.S. automakers GM and Chrysler had to be thrown multiple lifelines in the form of $17.4 billion to avoid bankruptcy, but it’s only the threat of that very bankruptcy that has resulted in movement toward hauling in labor and healthcare costs (see Chrysler in Canada here). 

Which leads me to the next unintended outcome of any new “economic stimulus” measures:  The success of car companies like KIA. 

With the U.S. government at the helm of GM and Chrysler, market forces go out the window.  President Obama has made it clear that he will “remake” the U.S. auto industry, ”forcing” consumers into smaller cars that are clean, economical and green.  During his campaign, he scolded auto makers for focusing on popular SUVS and not cars with improved fuel efficiency.     

Yet, KIA is currently building their first U.S. auto plant where their value-priced SUV, the Sorento, will be built.  My neighbors, many of whom had trailers hooked to their big SUVs at the recycling center this past Saturday to pick up free mulch, will be glad to know at least one company will still provide an SUV.    

Extreme Americans: The Harrisburg Tax Day Tea Party–Addendum

Written by Audrie Zettick on April 15, 2009

Addendum (4/16/09) Official estimates place the attendance at closer to 2,000.  Please take time to watch the video–average mainstream Americans concerned for their country.

It may have rained–even poured–but it didn’t seem to dampen spirits at the Tax Day Tea Party on the Capitol steps in Harrisburg.  I was there and agree with other sources that there were at least 1,000 people in attendance. Many more who were less willing to get chilled to the bone repeatedly drove by in their cars, taking photos, shouting in agreement…but we’re not counting those. Imagine if the weather had been clearer.  

Here’s my YouTube video of the event (promise I’ll work on a new mike for next time). 

Notice all the extreme Americans present, apparently engaged in threatening behavior like:

• chanting inciteful slogans (USA, USA)  
• spontaneously breaking into song (God Bless America). 
• Bringing food and personal items to donate to The Bethesda Mission.

All voluntary. The way we like it.

Proud to be among these great folks.

By the way, near the beginning of the video, that’s me and my daughter in the still photo with the signs (I’m Only 15 and already am $36,000 in debt). Her first protest. Aren’t we “Smart Girls.”

Harrisburg Tea Party Brewing Up Strong

Written by Audrie Zettick on April 13, 2009

Like many like-minded citizens across the country, I’ll be participating in the April 15th Tax Day Tea Parties scheduled for across the country (see here for a national google map, here for PA tax day parties).   I’ll be at the Harrisburg, PA tea party helping with voter registration and videoing the event.  It’s noon on the Capitol steps.  I’ll be wearing my Smart Girl Politics t-shirt and in the company of my 15-y.o. daughter (so proud to be there for her “first” protest).

In contrast to the myths put forward by some on the far left that these are paid events populated by looney fringe elements, Harrisburg is continuing a grand series of successful bipartisan events that have gotten the attention of elected officials and the media for the past several years.  Returning is Operation Clean Sweep’s giant Pink Pig that first made its appearance during the revolution that started in response to the 11th-hour, unconstitutional pay raise voted by state legislators (later supported by the State Courts, who also benefited from the raise). 

The Harrisburg protest is also the second tea party in recent history here, and is just the next generation in  this trend to demand accountability in government.  Courtesy of The Commonwealth Foundation, here’s a list of important updates from the Harrisburg event:

1. We are asking that you please bring with you some dry tea bags, because once the speakers have concluded, we are going to march into the Capitol and pile up tea bags outside the door to the Governor’s office!  To send a clear message, we’ll need thousands of tea bags, so whatever you can bring is greatly appreciated.

2. Please bring with you a canned or boxed food item for the “We The People” Food Drive to benefit the Bethesda Mission. There are many Pennsylvanians in need, and we want to help them and demonstrate in this small way that care can come without government intervention.

3. If you are looking to carpool or organize a bus, it is recommended that you post a message on the ‘wall’ of the Facebook page to see how many other folks are also interested.

4. Back by popular demand to speak will be central PA talk radio stars R.J. Harris, Gary Sutton, and Matt Brouillette, as well as Sen. Mike “Citizen Mike” Folmer, and Rep. Sam Rohrer.

5. Making its Tea Party debut will be activist Gene Stilp’s giant Pink Pig, of the pay raise protests fame. Mr. Stilp will have other eye-catching props on display.

6. Also back by popular demand will be the musical smorgasbord of classic anti-establishment rock ‘n roll anthems like “We’re Not Gonna Take It” (Twisted Sister) and “Revolution” (the Beatles).

See here for great suggestions on sign slogans.  I may bring an extra or two, as infiltrators posing as bogus right-wing extremist protestors have already tried to get media attention at other tea parties, engaging innocent bystanders, then posting video on youtube (won’t give them the credit by linking to them).  My extra sign will say “POSER” with an arrow.   I look forward to meeting all the other moms who I have heard from who are attending–outraged that their kids’ legacy will be paying taxes on all the excessive spending at the federal and state level. 

We’re the real deal and we’ll see you there!

Juvenile Delinquent Politicians: It’s How We Got Here

Written by Audrie Zettick on March 31, 2009

PA Leadership Conference recently held in Harrisburg, PA. Congressman Armey is now with Freedomworks and was the kickoff speaker for the PLC’s 20th Anniversary conference. Basically, he asked the question, “How the hell did we get here?”     

Over 570 conservatives were in attendance at this year’s conference, the biggest ever.  I saw people there I haven’t seen in years.  In fact, I’ve been missing in action from this conference though here in spirit.  Busy doing my part raising kids, running a business and generally trying to keep ahead of all those daily responsibilities.

I was scared off my duff this past year, as I watched American policy carried along by the rush of popular politics, not deep thought. That’s why I was there and why I’ll be at the Harrisburg Tax Day Tea Party.  Tweeting, blogging and Facebook have their place, but elbow to elbow with like-thinkers is invigorating in this time of national stress. And Armey’s message hits home.

He asked: how in the world can you get so many billions of dollars in bad business decisions?  Politicians in action have gone beyond sensibility to the absurd.  He explained:

• Almost all bad ideas can be worked into a rationale for building bigger government…that ultimately benefits elected officials by allowing them to build a bigger empire.It’s a natural impulse. 
• Politicians are drawn to economic issues for power, control, and authority over your life and money. 
• Politicians accept bad ideas because they are easy and nonrigorous. 

I don’t mean to beat up politicians.  I’m a former county-wide elected official (Clerk of Courts), committeewoman, judge of elections, and ran for Congress, among other positions.  But I’m a firm believer in term limits, limiting one’s time in office in order to keep connected to the “real world” the rest of us live in.  Armey’s message nails the problem. 

According to Armey, politics today is form of juvenile delinquency and citizens are living with the consequences. He noted that it’s time to stop accepting this behavior.   

I say, let’s perform an intervention.  The Tax Day Tea Party protests are a good start (or continuation, for those of you have been to the previous Tea Party protests).  See you there.

Who Wasn’t In The Room: Small Business Taxpayers

Written by Audrie Zettick on March 19, 2009

Business titans (or at least those with titanic salaries) stood elbow to elbow with President Barack Obama in January, part of the lobbying of the American public aimed at convincing us that indeed, business is behind his efforts to stimulate the economy. More recently, the President spoke to the Business Roundtable, another bastion of high-level, Fortune 500 CEOs. 

But it’s the elbow grease of American small business that’s not only kept this economy humming in the past, but kept us true to our traditions of self-determination and independence.  What qualifies as a small business differs depending upon what industry you are in and who is doing the defining. (Example: the SBA considers a telecommunications reseller with up to 1500 employees a “small” business although generally the top break is at 500 employees). What I am talking about is the meat and potatoes of small business–the more than 60% of businesses with zero to four employees.    

Failure to see things from a small business perspective is a bipartisan issue.  My own family’s experience speaks volumes.  Through Democrat and Republican administrations, we couldn’t fully deduct health care premiums, had to spend time figuring out how to adjust books for new tax tweaks and spent much more than we’d like on CPAs (a worthy profession, but really, I’d rather keep the cost down).  And don’t get me started on the voluminous paperwork and phone calls when (not if) we get a notice from the government indicating a payment error–which to date has always been an error on their part.

The past month, I’ve been phasing out our family promotional products business.  We’ve been in business since 1965–thriving much of that time.  But since my mother’s death 5 years ago, we’d been in a “holding” mode as I helped my 81-year-old dad from a distance (unlike when I was fully committed to the business in the 1980s).  I SHOULD be focused on helping our new owner “work” our client accounts, since payment for the sale is based on a monthly percentage of the sales from our existing clients.  Instead, I’m focused on administration.  I have an MBA.  How hard could that be?    

The list of taxes I’m dealing with is daunting.  Federal Withholding, Medicare, Social Security, Pennsylvania Withholding, Pennsylvania Sales Tax, Federal Unemployment and PA Workers Compensation, and local nuisance taxes (that require quarterly filing, even if we don’t owe a dime).  And we only had one employee at the time of the sale.  Like many small business owners, over the years we’ve found that complying with various local, state, federal tax and regulatory issues takes up more of our time than we’d like, keeping us from expanding our businesses.

I’m ever hopeful that the Obama Administration might do right by small business. This week he DID get the attention of some small business owners by proposing to use $15 million in TARP money to get credit flowing for small business.  It’s a worthy objective.  In layman’s terms, Obama’s recent initiative uses funds to buy SBA-backed loans and get them off the banks’ books, allowing banks to lend again. However, the stimulus package already has increased SBA-backing of the loans themselves to 90% from 75%–making me wary considering the recent track record on other programs (wasn’t the initial bailout sold to us with the intent to get bad mortgages off the books of financial institutions and didn’t we get into this economic mess because of mortage lending to risky borrowers?).  

Still, add to this his recent announcement to allow small businesses to get a larger tax break for losses  and it seems headed in the right direction.  But the actions still miss the point.    

Most of us who own small businesses don’t apply for SBA-backed loans and don’t intentionally try to lose money.  The average small business owner isn’t going to apply even for the basic SBA loan, which requires all owners of 20% or more of the business to personally guarantee the loan.  SBA loans are structured to spread the risk around (as they should be), with SBA working through local commercial institutions, and the borrower, lending institution and the SBA–in theory–all assuming risk (although this has altered under TARP).  In this economy, it’s understandable–and responsible–if both the lenders and the borrowers batten down the hatches, so to speak.

Whether we are a stay-at-home mom with an online business or the local plumber, we are more concerned with the financial balancing act: investing our proceeds into the business versus keeping enough self-employment tax funds in our checking account to pay our quarterly taxes.  After all, we get the pleasure of withholding (and then forwarding) the federal taxes deducted (like all employees) but paying the matching portion of these same taxes as the “employer.” 

Perhaps President Obama should have invited some of these folks below into his inner circle on small business. 

“My business doubled last year. I think we would all be better off if the government gave us our taxes back and let us invest the money as we saw fit in our own businesses. I’m creating prosperity for myself and others everyday…the federal government is just getting in the way of progress.”     Augustine 25

 

“Wouldn’t it be better just to cut their tax burden? By burden I mean both the taxes paid and the complexity dealing with tax code. When you need a lawyer and an accountant just to make sure you’re following the law, the law is too complex.”  Dan

 

I hear you, brothers. 

Reagan Bytes: Time’s Up–Words for Today on the Economy

Written by Audrie Zettick on February 25, 2009

I’m speaking to you tonight to give you a report on the state of our Nation’s economy. I regret to say that we’re in the worst economic mess since the Great Depression.

Words from President Barack Obama?  No, Ronald Reagan, from his February 1981 speech to the nation on the economy.

Here are a few other timely quotes from that speech to the nation:

We were once the greatest producer of automobiles, producing more than all the rest of the world combined. That is no longer true, and in addition, the “Big Three,” the major auto companies in our land, have sustained tremendous losses in the past year and have been forced to lay off thousands of workers.

In other words, we’ve lived through this before.  And, the auto companies have never “fixed” their issues.

I urge those great institutions in America, business and labor, to be guided by the national interest, and I’m confident they will. The only special interest that we will serve is the interest of all the people.

If only these words were heeded today.

Circumstances in 1981 were similar but not quite the same.  Mortgage rates were at 15.4 percent and inflation approached 13 percent. But the national debt had ballooned, taxes were eating a growing percentage of family income, seven million Amercians were unemployed and many couldn’t afford their homes.         

However, Ronald Reagan’s solution was to propose an economic package of budget reductions and tax reform.  He sought to reign in federal spending and increase the take-home pay of Americans.  The differences in his approach contrasts to that of “Team Obama” due to the fundamental contrast in how they view our economy and our national wealth.  See how these words of Ronald Reagan below contrast to President Obama’s:

“We can create the incentives which take advantage of the genius of our economic system — a system, as Walter Lippmann observed more than 40 years ago, which for the first time in history gave men “a way of producing wealth in which the good fortune of others multiplied their own.”

 

“Our aim is to increase our national wealth so all will have more, not just redistribute what we already have which is just a sharing of scarcity. We can begin to reward hard work and risk-taking, by forcing this Government to live within its means.”

 

“Over the years we’ve let negative economic forces run out of control. We stalled the judgment day, but we no longer have that luxury. We’re out of time.”

Time’s Up. I’ll let those words speak for themselves. 

Source:  ”Address to the Nation on the Economy from the White House February 5, 1981,” The Public Papers of President Ronald W. Reagan.  Ronald Reagan Presidential Library, http://www.reagan.utexas.edu/archives/speeches/1981/20581c.htm accessed February 25, 2009. 

Talking Points: The People Speak On Stimulus Package

Written by Audrie Zettick on January 28, 2009

Around the country, the grassroots are speaking out, calling and emailing their congressional delegations in opposition to the current so-called economic stimulus package–”The American Recovery and Reinvestment Act.”  Put forward as an “emergency” appropriation needed in time of economic distress, it looks more like a Christmas package for overzealous big government spenders.

In spite of some small changes made in the past 24-48 hours–such as pulling the inclusion of contraceptive programs as part of economic stimulus–the bill remains bloated and chock full of programs that either require more consideration or are downright detrimental to the country at this time. (note: it is my understanding that the programs for ”

Regardless of your political persuasion, we urge you to contact your elected officials NOW in Washington (and especially your Senator) and tell them to oppose the current bill.  (Contact info here).

Here are some quick, simplified talking points:

• This is too important to be partisan.  Republican proposals were shut out of consideration by the Congressional democrats, who operated behind closed doors. 

• The $825 billion stimulus package is actually estimated to cost over $1.1 trillion over ten years, according to the nonpartisan Congressional Budget Office.  (Some estimates take it as high as $2 trillion).

• Bloated excessive spending doesn’t work.  In the Bush Administration, spending was increased at the Departments of Transportation, Education and Health and Human Services to the tune of 2, 3, and 4 times the rate of inflation (respectively).  Look at where that got us.  Why do we think the same actions would work now and not worsen things? 

• This is billed as an emergency appropriation.  Congressional budget office revised estimates say that only 64.4% of the funds will be spent in 18 months from enactment.  Further, less than 21% of the funds are expected to be utilized in 2009.  At minimum, let’s cut the funds not being used on an immediate basis! 

• It is shameful to believe that the myriad of programs included in the bill are for economic stimulus. (Customize your response from this list of pork. Hat tip Glenn Beck and staff).  This bill is just an excuse to ram new programs through.  This legislation would create more than 32 new programs!

To help stabilize our economy, we agree with the tax cuts included in the bill.  However, we prefer less spending and a better focus on what tax cuts can do to immediately stimulate the flagging economy, such as that included in the alternative “The Economic Recovery and Middle-Class Tax Relief Act.”

“The American Recovery and Reinvestment Act”  is a “borrow and spend” bill that will burden our children for decades.  We demand that you vote “no.”

(Note: see also the “Melt the Phone Lines” initiative on Top Conservatives on Twitter.) 

647 Pages versus One Simple Video: Wake Up America

Written by Audrie Zettick on January 27, 2009

Four words strike fear in my heart.  Well, more accurately, four names. Henry Waxman, Barney Frank, David Obey and Charles Rangel.  Power brokers in this Democrat-controlled Congress, these committee chairs are key sponsors of the “government stimulus” bill near-destined to pass in some form or another. 

I might be a brain-jockey but I’m no economic rocket scientist. With jobs dropping like flies here in PA and elsewhere, maybe there is some call for strategic government spending?  Figuring this is too important to the future of my kids, I found an online link to H.R. 1 “The American Recovery and Reinvestment Act” being discussed in D.C. this week.   (Glenn Beck and others have growing lists of spending proposals I’ll cover later).

Normally, a policy document of this length would be a good sleep-aid.  But this one’s more in the line of a nightmare. Still slogging through the mire, but let’s just say I’m having a bit of a problem understanding why billions of bucks for items like special education, health-information technology systems and broadband access in rural areas is an emergency.  (Yes, this is an “emergency” appropriation).

The Commonwealth Foundation in Harrisburg PA tweeted a link to a video that all of us should view this week. It’s by the Cato Institute and succinctly highlights how government spending can’t buy us out of this economic mess.  (Make sure you watch until the end, where they show Bush-era spending increases of 2, 3 and 4 times inflation—and THAT sure helped, didn’t it?).

I’ll be putting together some talking points and other links you can pass on to your friends, family and others who need to know how their future is being mortgaged. 

Meanwhile, back to the 647 pages of HR 1, and a stiff cup of coffee.  Wake up America.

Survive Obama Inauguration Day and Beyond: Let Your Heart Be A Twitter

Written by Audrie Zettick on January 20, 2009

Many heads are in the clouds and hearts all a twitter with this historic inauguration.  To heck with the size of our carbon footprints, let’s make a carbon caldera as we party like it’s 1999.  

Actually, I’m staying home but I don’t behoove Obama supporters (except perhaps those in the media) their fun and adoration of “the One.”  I avoid fawning over pop culture icons, but admit to being speechless the first time I met Reagan.  I wore “Reagan red” in the 1980s—but only because I looked “hot” in the color. 

And you’d have to have a heart of granite not to be moved by the inauguration of our first black President, in a town where the Capitol was build by slaves.  

Yes, I’m for Hope and Change.  Hope that Obama’s inauguration leads to an historic presidency where the first family becomes less a pop culture figure but more an example of a healthy, intact family to emulate.  Hope that President Obama’s speech on accountability and responsibility isn’t about government’s responsibility as a nanny state, but our’s as citizens. And I hope that I still have change in my pocket after Nancy Pelosi’s majority gets through with my purse.

But as I watch the inauguration today, I’m still filled with dread.  Our local paper drove home why I feel that way with an opening line that reads “Today, America changes course.”  With high level officials like Hillary Clinton and Eric Holder at the helm of major policy-making departments, I’m anxious. Lesser known figures such as Cass Sunstein and several at the Justice Department frighten me even more. As regulatory “czar,” Sunstein is in a position to advance his principles, which include designing regulations around how people behave.  He definitely doesn’t behave the way the folks in my family do, where we eat meat, have relatives that hunt, and haven’t included our pet fish in our wills.

Last week, I came across many lists about how to survive the inauguration, such as this one that gives the advice not to wear sequins lest you become stuck to another sequin-attired attendee at an inaugural ball. Not what I had in mind.  Alas, how do conservatives make it through today, tomorrow and next week without our heads exploding?

Fear not, my friends.  I have found the solution.  Attend the Twitter Ball (see Washington Times) hosted by Smart Girl Politics at 9 p.m. tonight (Jan. 20).  Why?

• It beats wrapping your head in duct tape.
• You can wear sequins without worrying about getting stuck to folks like Nancy Pelosi.
• You can wear pajamas…or less.
• Some of us from #TCOT (Top Conservatives on Twitter) will be there.
• You can rub “virtual elbows” with people like Saul Anuzis, Chip Saltzman, Amanda Carpenter, and others.
• It’s less calories than chocolate (my personal choice for relieving anxiety)
• You can engage in several tracks of discussion, such as 2012, Taking Back the Congress and more.
• You can turn these discussions into action.
• It’s a hangover-free event and even cheaper than Wild Turkey.
• No worry about how many porta-potties are present. 

See you online.

Of Filthy Juicy Profits, Pantyhose & Duct Tape: Cuban Policy

Written by Audrie Zettick on January 13, 2009

Fidel Castro has criticized legal and illegal taxis in Cuba for their “juicy profits.”  He was also once quoted as saying:

I find capitalism repugnant. It is filthy, it is gross, it is alienating… because it causes war, hypocrisy and competition.

Some filthy juicy profits may be coming to the rescue of Cuba’s ailing transportation system, as Raul Castro is allowing new taxi licenses to be issued and some taxi drivers to set their own rates.  One mother of a state engineer is quoted as wanting her son to consider giving up his day job to use their car as a taxi. 

Of course, their car is a 1950s Chevy.  (I wonder what all these Cubans would think of the Hershey Car Show each fall, with all those “vintage” cars spiffed up and for sale).

Yes, capitalism at work.  Of course, it’s far from ideal.  Cabs in more populated areas will be more highly regulated and price controlled.    

Even though it’s been ten years since the Cuban government approved new taxi licenses, it hasn’t stopped drivers from offering the service.  So with some of the government brakes off, it will be interesting to see how this plays out.

When my hubby and I were in Ukraine (for an adoption trip) we primarily traveled by taxi.  Each morning we’d guess at what kind of vehicle would show up at the apartment.  Dented?  All windows working?  Any seat belts? Do we have duct tape and pantyhose in case we need to help with on-the-road repairs?  (click here for photos on various auto duct tape repairs and here for a video on replacing your fan belt with hose).

We were taking our lives in our hands–cars in less-than-ideal condition plus bad roads is not a good combo. One member of our independent adoption group was killed in a head-on collision during an evening drive the previous winter because her driver had no headlights.  

Strangely, along with my fear of riding in a cab was delight that these folks were making an independent living.   

President-elect Obama has suggested changes to U.S. policy toward Cuba.  I propose sending duct tape and pantyhose to Cuba to support these budding entrepreneurs. 

Capitalism built on duct tape.  Not a bad idea.  It can be as difficult to remove as an incumbent Congressman.