Rebane's Ruminations
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  • George Rebane

    [This is the submitted form of my July column that appears in the 11jun11 edition of The Union and in its online form here.  A related graphic on the impact of the stimulus is on NC Media Watch here.]

    This administration has taken a bad economy and, by any measure, made it unimaginably worse.  We all know the litany of government stimulus packages, corporate bailouts and takeovers, new reams of regulations designed to drive business and finance off-shore, and, of course, Obamacare.  That nationalized healthcare monstrosity is proving to do exactly the opposite of every one of its touted benefits.  And parodying Nancy Pelosi, the more we find out about the Patient Protection and Affordable Care Act, the worse it gets.

    Polls now show President Obama’s disapproval ratings well above 60% for his handling of the economy, yet enough people are being paid sufficiently that 44% of voters would still re-elect him.  With so many people ignorant about or out of today’s economy, it will take a miracle to replace him.

    Meanwhile both Democrats and Republicans agree that small businesses are the nation’s job creators, and success there paves the road to recovery.  Yet the social engineers and vote buyers in Washington continue hindering the very economic activities they tout from the other side of their mouths.

    Few people know what it takes to be an entrepreneur and start a job-creating business.  A successful entrepreneur comes with an over-arching dream, a practical approach, tolerance for considerable risk, and enough funds to last through the ‘cash minimum point’ when revenues start exceeding costs – whenever that may be.

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  • George Rebane

    [This is the transcript of the 10jun11 edition of my regular bi-weekly KVMR commentary broadcast earlier this evening.]

    Nevada County has had a harder time than most during this Great Recession.  The closing of stores, shops, and businesses has hit our workforce particularly hard, causing our unemployment to hover above 11% with the nation at 9.1%.  To pile on, the county is currently in the throes of a costly lawsuit and embarrassing scandal.  But it’s easy to see that all of these misfortunes could be turned around with an improved local economy.

    In the past years we have had various conferences and summits that drew together business and community leaders to see what could be done to make things better.  These were usually led by the county’s Economic Resource Council, cities, and the local chambers of commerce.  None of these conferences ever went anywhere because first and foremost, we could not agree on where we wanted to go.

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  • George Rebane

    Just a short update on how individual states can still affect their own fortunes as long as they have the brains and will to do so.  After all, allowing the several states to improvise and compete in how they solve their own problems of local governance is part of the genius of our Founders.  California, of course, has shoved that genius up where the sun don’t shine and we are where we are.

    TexasJobs Today’s WSJ reports the results of a recent study by the Dallas Fed (here).

    … since June 2009, when the recession ended. Texas added 265,300 net jobs, out of the 722,200 nationwide, and by far outpaced every other state. New York was second with 98,200, Pennsylvania added 93,000, and it falls off from there. Nine states created fewer than 10,000 jobs, while Maine, Hawaii, Delaware and Wyoming created fewer than 1,000. Eighteen states have lost jobs since the recovery began.

    From the nearby graphic our California is not even lumped with ‘All other states’ because it lost a net 11,400 jobs.  Today we find that “Texas accounts for 45% of net US job creation” and “is also among the few states that are home to more jobs than when the recession began in December 2007.”

    So how did they do it?  Well let’s see if we can guess which state “has no state income tax. Its regulatory conditions are contained and flexible …, is fiscally responsible and (its) government is small. Its right-to-work law doesn’t impose unions on businesses or employees” and it “is open to global trade and competition”.

    Only the hard left rejects that “capital—both human and investment—is highly mobile, and it migrates all the time to the places where the opportunities are larger and the burdens are lower.”  That lesson has been absent in the Golden State for over a generation now, and like insane people everywhere, we expect things to change for the better by doing even more of the same.

    What can little Nevada County learn from this data and constructively do, as we contemplate developing our own economy?

    And what does all this say about multi-cultural democracy unleavened by education?  But never mind, that query we’ll save for another time.

  • George Rebane

    The ‘birther’ pot continues to boil.  In ‘The Birth Certificate from Hell’ I reviewed the response to the White House posting of President Obama’s long form birth certificate.  The pdf image of the certificate, available from the WH website, indicated clearly that it had been ‘photoshopped’.  For more recent developments, please read Russ Steele’s 06jun11_0650 comment on that post.

    JobLossesSinceWW2 

    RR readers know that I am of the Austrian persuasion (Mises and Hayek) when it comes to economic theory and government policy.  Mises’ famous advice to governments seeking to repair recessions – “Do nothing, sooner!” – was first borne out in the Great Depression.  In the recessions since, the dictum has garnered additional support.  This is nowhere illustrated better than the above graphic from calculateriskblog.com (H/T to RR reader).  Here we see the extension of recessions as the feds have started to ‘help’ out.  And, of course, the poster child of them all is the current Great Recession that is on its way to becoming Great Depression Two. 

    Bush2’s TARP started things off (red line) by slowing down unemployment at the predictable and predicted (also here on RR) cost of a deeper and more extended unemployment later which President Obama cooked into this economic cow pie with his bailouts, corporate meddlings, increased regulations, and trillions of stimulus dollars that have left the socialists yapping their perennial ‘It would have been worse had we not done what we did.’  Were Mises and Hayek still alive, I venture that their next piece of advice to us would be, ‘Stand by for ram!’  (More on this at NCMW here.)

    MathSciScores2009 Last night I was at Bear River High School presenting some scholarships from SESF (TechTest) and the Nevada City Rotary Club on their annual awards night.  And last week SESF presented the major tranche of TechTest2011 merit scholarships to Nevada Union High School seniors.  These scholarships continue to support young people headed for technology careers.  The daily news reminds us again that we are in dire straits as nation when it comes to supplying wealth creating workers.  Thanks to the new politically correct curricula promoted by leftwing teachers’ unions, we have been turning out dumber students in mostly ‘meathead majors’.  Industry is again beseeching our school systems to turn out workers with skills needed in the American workplaces (see ‘Industry Puts Heat on Schools to Teach Skills Employers Need’ in the 6jun11 WSJ), and progressive organizations like the NAACP continue to throw their weight against the kids who are most disadvantaged (here).  The nearby graphic illustrates the competitive slide of US students compared to students in other OECD countries.

    The shortage of qualified people in the manufacturing and service sectors is especially acute even in the days of 9+% unemployment.  The greatest “service sector” job shortage is in engineers which, of course, relates to our inability to attract and educate people in the STEM subjects (STEM? Science, technology, engineering, mathematics).  It would behoove all of us with a voice and a vote to become familiar with this problem which has been assiduously ignored and/or downplayed by the progressives in places where it counts – the nation’s classrooms.  For more details on jobs and the strategies leading companies are using to get workers, please see the special reports in ‘The War for Tech Talent 2011’.

  • George Rebane

    My email has been running torrid over the last day or so with everyone telling me, and everyone else, about the Sac Bee article on ‘hard money’ lending shenanigans in the state, and especially in Nevada County.  “NC Clerk/Recorder Diaz has company regarding questionable dealings while in office.” is a typical message line in those viral emails.

    Please, dear readers, let’s not let this latest hot flash confuse or dilute our limited attention spans with what is going on in the AtPac lawsuit.  The hard money lending businesses recently rife in the county, that the Sac Bee says implicates our DA Cliff Newell, is a horse of a significantly different color.  One involves our highest elected officials in an arguable screw-up that brings to question their competence, the other involves alleged criminality in private business dealings that smell to high heaven of fraud (with the added allegation that certain people received “favorable treatment” from the DA’s office).

    The AtPac case also has immediacy.  The folks at the Rood Center, our vaunted leadership and defendants in the lawsuit, are into a period of critical strategizing and negotiations with the plaintiff that can spell loss of more good money after the bad money already committed and spent.  And as we have seen from the available evidence, these guys have yet to demonstrate the sterling quality of the their decision making capability.  They tacitly corroborate this assessment by having nurtured this ‘nuisance suit’ into a nightmare while trying to keep a lid on the whole thing.

    Meanwhile, the NC hard money caper is still under investigation by everyone from our local constabulary through Sacramento to the feds.  Sac Bee has yet to drop the other shoe in their two-part investigative reporting on the matter.  I think it’s too early to get our undies in a bundle on this one, especially since they already have a couple of good twists in them over the lawsuit that promises to cost us taxpayers some serious bucks before it is settled.  No one has yet provided a hint of a connection between AtPac and hard money.  In my view, job one here is to first gain enough information about the AtPac suit so that we can evaluate the people we elect to govern us.

    [6jun2011 update]  The SacBee dropped the other shoe today as reported by Russ Steele on NCMW.  In its second of two articles the newspaper spells out some of the gory details of hard money lending that have gone down in Nevada County.  The attendant graphics in the article help make sense of some complicated stuff and highlight the cast of characters involved.  There is no indication yet of new evidence that would incriminate our DA Cliff Newell.  The Union covers this aspect here.

    [14jun2011 update]  The county will enter mediation on the AtPac case on 21 June 2011.  Clerk-Recorder Greg Diaz gave his deposition on 27 May.  In this deposition Mr Diaz gave testimony from his perspective on the events germain to this lawsuit that would presumably identify the who/when of giving Aptitude Solutions access to AtPac software, and the subsequent scrubbing of the county records server.  It appears that the county does not want Mr Diaz's deposition to see the light of day.

  • George Rebane

    Word from the litigation front is that former Nevada County software provider AtPac is filing for summary judgment in its intellectual property suit that names the county, Clerk-Recorder Greg Diaz, and Aptitude Solutions, the county’s new software provider, as defendants.  (Ref Case 2:10-cv-00294-WBS -JFM Document 172 Filed 06/01/11)

    Filing for summary judgment is an extremely expensive and aggressive step in such lawsuits, and entails risk if the plaintiff is not absolutely sure about the strength of the evidence and its case against the defendants.  Such an action essentially says to the court, ‘The evidence is overwhelming, our claims are on solid ground, let’s cut to the chase and get this thing over with.’

    Readers not familiar with what is turning out to be a landmark fiscal and political event for Nevada County can quickly get up to speed by reading ‘Rood Center Bumblings’ or searching RR (left column) or The Union with ‘AtPac’.  (A related story about Aptitude Solutions and its owner LPS is found here.)

    It will cost the county an additional arm and leg in legal fees just to respond to a summary judgment filing.  And you can bet the costs will go up even more if AtPac’s strategy is correct.

    I believe that the county will now get off its high horse and scramble to mediate so as to head off the summary judgment at the pass.  This will still add costs way beyond the $1.2 million approved so far by the Board of Supervisors.  But it will serve what seems to have become the overarching objective at the Rood Center – the cover-up of errors, omissions, and just plain incompetence.

    There are no legal strictures in place that prevent the county from telling taxpayers what is going on with AtPac and Aptitude, they all know.  And there is nothing that says the county ‘must’ keep a tight lid on developments in this case, only that it ‘may’.  In my opinion, the only conceivable reason that the county is keeping things hush-hush is to keep the taxpayers and voters in the dark on the details of what now appear as gross errors in oversight, management, communications, operations, strategy, and cost controls.

    However, this sound of silence from the Rood Center will not come free.  In its mediated settlement the county will demand that AtPac not divulge the contents of the evidentiary packages that have been exchanged according to the applicable rules governing federal court proceedings.  Such revelations would put a laser pointer on individuals, from the electeds through management to the worker bees who screwed up.  And in addition to covering its legal costs, AtPac will be due its pound of flesh for such an agreement, mitigated only by its hope that it may again in the future become the county’s records and processing software provider.  I will not be surprised if we taxpayers will be out of over $2,000,000 when the dust settles on this.

    In response, the local know-nothing echo chamber will parrot that such agreements of confidentiality in perpetuum are the norm, but that is both wrong and irrelevant.  Between private parties, who have no higher authority to which they must answer, such agreed-upon silences are indeed the norm.  But even between corporations, the managements handling a lawsuit must divulge the settlement details to their boards which hire and fire them.

    But in such cases as the AtPac suit, it is the imperial state that looks down upon its citizens, who fund it and hire/fire its leaders, and then deems what they should know and not know.  This is an ancient maneuver of self-preservation über alles, and we are witnessing it right here in Nevada County.

  • George Rebane

    Archie&Meathead Apropos to the lively discussion at ‘True Value of Work and Caring Economics’, Harvard professor of government Harvey Mansfield contributed a telling piece about the “poor choices … students made in selecting their courses and majors.”  In ‘Sociology and Other Meathead Majors’ Dr Mansfield points out the distinction between education based on facts and that based on values.  And, of course, therein lays a root cause of rot in our workforce.  Majors in ‘values based’ subject areas are hard to sell on the labor markets.  And moreover, such majors are victims of the commercially useless leftwing ideologies that are rampant in the country’s schools.  That is a double burden that no employer, save the government, wants to bear.

    Mansfield opines that “Archie Bunker was right to be skeptical of his son-in-law’s opinions.”, and goes on to say –

    More fundamental, however, is the division within the university today, in America and everywhere, between science and the humanities. Science deals with facts but the humanities also have to deal with values. This is where the problem of bad choices arises. We think that one can have knowledge of fact but not of values—the famous “fact/value” distinction.

    Science has knowledge of fact, and this makes it rigorous and hard. The humanities have their facts bent or biased by values, and this makes them lax and soft. This fact—or is it a value?—gives confidence and reputation to scientists within the university. Everyone respects them, and though science is modest because there is always more to learn, scientists sometimes strut and often make claims for extra resources. Some of the rest of us glumly concede their superiority and try to sell our dubious wares in the street, like gypsies. We are the humanists. 

  • George Rebane

    In ‘Avatars – Lauren and Bogie Together Again’ I described the progress toward a new film industry wherein old actors would become immortal and continue to star in new films as long as audiences were willing to pay for them.  Accelerating technology has taken another giant step in this direction as described here in ‘Digital human actors set to break into big time’. 

  • George Rebane

    KVMR news director Paul Emery commenting on ‘Right Wing Extremism in Action: Tea Party Houston’ introduced Riane Eisler’s Caring Economics into the wide-ranging discussion in that post’s comment stream.  Paul Emery’s concern there was that Eisler’s ideas are so compelling and, at the same time, revolting to conservatives, that they find it too hot to handle and simply want to change the subject instead of confronting head on its solutions to society’s problems.  I personally was accused twice of doing so after answering Paul’s charges (BTW, readers should know that Paul is a friend, the ‘editor’ of my regular KVMR commentary, a student of the human condition, and one of the leading light’s in the local left’s intellectual  pantheon.  I am grateful that his observations and critiques generously grace RR’s comment streams.)

    By any measure, Eisler is a left-wing economist with strong feminist overtones.  The above link provides an excellent summary of her Caring Economics.  The purpose of this post it to provide a forum for a discussion of Eisler’s ideas for a brave and caring new world.  We begin appropriately with Paul’s most recent lament about capitalism –

    One of the problems with capitalism as it is heralded by the self described conservatives is that it places no value on the work being done, only on whether it turns a profit. To place a value on the importance of the work being done is an evolution that Ms. Eisler embraces.  Doesn't the work of raising intelligent, educated and responsible children have more value than the manufacturing of cigarettes for example?  How is the true value of the work we do established?  It's a huge question that no one wants to talk about.

    So let’s begin by talking about the ‘true value of work’.  (I have the honor of being not only a “self-described conservative”, but an ascribed conservative who has enjoyed that appellation from far and wide, bestowed over many years.)  Value itself is usually understood to be “the worth of something in terms of the amount of other things for which it can be exchanged or in terms of some medium of exchange.”   The ‘other things’ may be person-to-person specific, or person-to-market specific – here it takes to two tango.

    ‘True value’ of anything is a general concept foreign to most people, except perhaps those contemplating the workings of command economies.  Most progressives quickly tend toward command economies when in such discussions they are invited to bare their souls.  So in this sense, there exists no ‘true value of work’ that can be applied in the large where people are free to bargain and trade.  It has and continues to be a socialist shibboleth.

    Now to the value of “the work of raising intelligent, educated and responsible children”.  In dollars and cents that value is already expressed precisely by the parents of the child as they invest in his support and education while he remains in their household.  From an economic perspective, the kid returns little beyond the hopefully net joy that is provided for by the human relationships involved.  And the little darlin’ doesn’t even provide that to the rest of us.

    We stand still for transfer payments to benefit another’s child in the hope that the present value of the kid’s future economic contributions will somehow make worthwhile today’s expenditures.  As a taxpayer, I don’t need to pay for the parents’ marginal labor in bringing up their kid.  If they have wealth generating jobs, they already charge enough for their labor there to account for such ‘home expenses’.  The last thing that we need is an armed and uniformed marshal at my door to collect the marginal tax for paying some mother to raise her kids.  To an extent, I think we already have a foot in such a world.

    Eisler’s new brand of command socialism would have us succumb to exactly such government assignations of the ‘true value of working mothers’ to be an added cost borne by the (all together now) ‘rich’.

    Let me conclude this post by bringing forward the relevant comment thread from ‘Right Wing Extremism …’ to Paul’s above opening salvo.  Notice that Paul will introduce a new idea, “true capitalism”, in his response below.  This is another notion inaccessible to most of us.

     

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  • George Rebane

    That is a thesis put forward in the comment stream of ‘Rightwing Extremism in Action: Tea Party Houston’.  And I believe this strong and important statement deserves an examination in its own right.  First, let us understand political violence to be the use of force in the pursuit of a political end.  What’s a political end?  In this case it is clearly a political environment that does not exist at the time that the violence is perpetrated.  Else why even give the matter thought, let alone start using force?

    PoliticalViolence1 Politics (from Greek πολιτικός, “of, for, or relating to citizens”), is a process by which groups of people make collective decisions. The term is generally applied to the art or science of running governmental or state affairs (an excellent definition from Wikipedia).

    So a political end is usually one that specifies a state of governance ranging all the way from the structure of government itself, to one or more policies of such a government that are codified in anything from its constituting documents, through its laws, to regulations made by its departments in pursuit of executing certain laws.

    With this groundwork laid, we may profitably contemplate the truth value of the thesis ‘All political violence is wrong.’

    To begin, can anyone think of any kind of violence (excluding naked criminality committed within a system of governance) which would not be considered political violence?  Political violence is throwing a Molotov cocktail through the window of an abortion clinic; it is blowing up a big government office building; it is also using billy clubs to determine who can or not enter a polling place, to attack commercial establishments in protesting certain meetings or government actions, to commit a suicide bombing, to cause harm to someone for not joining, and so on.

    Political violence is also the marshalling of a population to raise an army, and fight for independence from a legally constituted and recognized government that rules the land – this is called a revolution.  Political violence is also when one nation decides that its interests are best served through the use of force to weaken another country, sanction it, coerce it into certain concessions, or to invade it and annex it into its sphere of influence either by absorption or installing a new government that serves its needs.  In short, it all seems to be political violence.

    PoliticalViolence2 Do we now condemn some of the above, but not all of it?  It seems that most people would not condone an individual deciding to blow up a random group of innocent people in pursuit of political ends.  Yet if a group of people fill a city square to overturn cars, set fires, and make barricades to protest against their government, then we (in the large) don’t instantly condemn such political violence.  Instead, we will take into consideration many factors, and may even go to the aid of those people and abet their violence.  This is something that we will most likely not do if the perpetrator of such violence acted alone, or with a comrade, or maybe a cohort of less than ten, or … .

    Unavoidably, it seems that numbers have something to do with whether we admit and condone political violence or condemn and resist it.  The principles that motivate the ‘lone wolf’ and the mob of thousands may be identical, but somehow here principle is overshadowed by plurality.

    If that is true, how do we assign an a priori threshold or rule set (algorithm) to separate ‘good’ political violence from ‘bad’ political violence?  Many will immediately respond by saying, ‘Well, that depends on many things.’  And that is point here, what are those many things?  How are we – or better, how am I – to judge the acceptability of political violence given that it is one of the most common and enduring expressions of human desperation?

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