Everyone and I mean everyone is wringing their hands, wracking their brains in an effort to find a solution for this recession. The Obama administration is at least attempting action while they wring, but an FDR buy-out will only devalue our already weakened dollar. Because of the content of some of what Obama has said, I think a good portion of that weakening is intentional. Our sitting President does not like the idea of common people being able of afford gasoline, but that is a subject for another day.
The way out of this mess is so simple and straight forward that it is not at all surprising every single political leader missed it. One good reason is that part of the recipe demands a lessening of the greed factor. Right there we have ruled out a significant portion of corporate and political America, but, believe me, it is necessary.
In order to get through this we have to hit the problem from both ends, both in the reduction of costs and in revenue growth. A huge factor is the cost of fuel, which is directly related to infrastructure. If we spent the time to put in place the infrastructure to handle and distribute alternative fuels, gas prices would plummet. Nothing balances a market like competition, and building that infrastructure would add thousands of high quality jobs. The greed factor could be handled by adding in real oversight that included stiff fines and even jail time for corruption, including that of politicians. If such oversight upsets some of the powerful and prevents certain multinational corporations from participating, so much the better, who needs ‘em? This country has plenty of smaller and smarter firms willing to step in and grow. This could be a chance for Obama to put his pen where his mouth is and prove he actually is for the little guy.
Another area is education. Our elected leaders claim they are for excellence in education, but they just don’t want to pay for it. If we diverted one tenth of the money we send overseas and put it into education, not administration, we would have enough to pay teachers what they are really worth, build schools large enough to accommodate all of the students and put every text book and tool they need into their hands. Imagine what we could do if we raised that amount to 20%. It’s high time the rest of the UN paid its portion of the freight any way.
Have you ever heard of the Toyota Volta? It is an electric car that looks good and can travel upwards of 250 miles on a single charge from a standard household outlet. Ever wonder why it isn’t offered for sale? How about the Mini Cooper Hybrid that gets 85 miles to the gallon with no loss of acceleration? It isn’t allowed to be sold in the US. Ever wonder why? The answers to these questions can be had in Washington, if you can get them to talk.
Just north of Las Vegas, up I15 before you get to the town of Mesquite, there is a long stretch of BLM land that would be ideal for an industrial development. Imagine putting in plants to build cars like the Cooper Hybrid and the Volta. Do you think the companies would have problems selling them? Absolutely not. Of course, we would have to deal with the greed factor again. This means that executives would have to trim their wages back far enough so that factory workers could be paid a real living wage without the crippling financial effect the unions had on Detroit. It can be done if all sides can actually work together.
In the Armagosa Valley there is a dairy. Because of milk price controls (the price is kept high, not low), the dairy is not allowed to sell all of its production. A deal was worked out so a gourmet ice cream company could build a plant across the street from the dairy to turn the overproduction into ice cream. Nevada and California sued to prevent the plant from being built because of “environmental concerns”. Now Utah has yet another prospering concern adding to its fortunes.
Ever since gambling was legalized in Nevada, tourists have been crowding I15 as the flow in from California. Train tracks run along that route for most of the way. A commuter train has been discussed without resolution for about as long. The problem is that no one can decide who pays what. This is where the heavy hand of Washington is needed. The same way the legislature is being forced to fund education if they want to get federal dollars, the same can be used to bring commuter travel into this century. Force a joint state public private partnership. Do not allow corruption of favoritism to enter in by jailing anyone, regardless of who they are, and that includes mayors and governors if they break the law, and begin building. The cost can be paid by the use of tickets and tools. Commuter choice can be enhanced by also maintaining a free travel highway for those who don’t mind traveling at a slower pace.
Home ownership is one of the big ones right now. With so many banks crumbling because they allowed themselves to be sucked into the ACORN ponzi scheme, a radical restructuring needs to be done. Even if a mortgage holder is upside down, there was a point where they were able to pay the monthly freight on the mortgage. A great number of the failures, excluding those idiots who purchased multiple homes hoping for a quick flip, were brought on because the bank raised the interest rates and refused to back down on that rate even when it became apparent they would have to eat the loan. All they have to do is reduce that rate down to a level where the original mortgagee can again make a payment, even if that level is below prime. A little profit is better than a loss. This is again where greed has to take a back seat. There is nothing wrong in flying coach instead of buying an over-priced private jet.
The recipe is, education, enforced corporate and governmental honesty, public-private partnerships, the ignoring of bothersome environmental suits only intended to prevent growth, and common sense. That last component is the rarest of all.
Wednesday, February 11, 2009
Tuesday, February 10, 2009
The United Way? United for whom?
The inability of some executives and organizations to recognize certain facts amazes me. In the world of politics, for example, the average citizen is viewed by politicians with about the same respect they reserve for deep fried shrimp. To political office holders, John Q. Public has roughly the same intelligence level as lint. In actual practice the reverse is true. The public isn’t stupid; they’re just treated that way.
Take the current financial crisis we are going through. A few weeks ago, several hundred teachers in the Nevada School System were given their walking papers. As contracted employees they will finish out the year, but then they will have to find new jobs. Have any of those firing these teachers taken cuts in salary to save a job or two? The cynical answer is the right one. To compound the insult, a few days ago these teachers had to attend a mandatory meeting with a United Way representative asking for handouts.
Whoever planned this had to have been at such a rarified level of administration that their brain has atrophied from lack of oxygen. You do not tell employees you have just fired that they now have to donate a portion of the penny-ante salary you pay them. The United Way tells every one that every cent of their donation goes to charity, that none of it goes toward administrative costs. The one telling this manages to say this with a straight face while wearing a very expensive suit and showing a Hollywood quality video. Yes, and politicians always tell the truth.
The Nevada Legislature is now in session. At the top of the discussion is what to do about the mandate attached to Obama’s stimulus package. In order to qualify, Nevada has to replace nearly 300 million of the dollars it just took away from education. To hear some of the GOP leaders like Bill Raggio, you would think Washington was asking them to give up drinking.
I told these leaders how to solve their budget problem. I told them over two years ago. They didn’t listen and I doubt they understand how to solve it now. The problem lies in an inability to think pragmatically. To them, the public consists of a flock of sheep. Their constituencies are the campaign donors and the businesses paying for all the little perks that make political office so attractive. The flock gets sheared and the donors and politicians reap the rewards. This is the way it has always been…until now. The public has begun to hold back their dollars and the legislature is running scared. Their greatest fear is that they might actually have to do their job and do it honestly. Obama’s mandate was a superb piece of manuvering.
Take the current financial crisis we are going through. A few weeks ago, several hundred teachers in the Nevada School System were given their walking papers. As contracted employees they will finish out the year, but then they will have to find new jobs. Have any of those firing these teachers taken cuts in salary to save a job or two? The cynical answer is the right one. To compound the insult, a few days ago these teachers had to attend a mandatory meeting with a United Way representative asking for handouts.
Whoever planned this had to have been at such a rarified level of administration that their brain has atrophied from lack of oxygen. You do not tell employees you have just fired that they now have to donate a portion of the penny-ante salary you pay them. The United Way tells every one that every cent of their donation goes to charity, that none of it goes toward administrative costs. The one telling this manages to say this with a straight face while wearing a very expensive suit and showing a Hollywood quality video. Yes, and politicians always tell the truth.
The Nevada Legislature is now in session. At the top of the discussion is what to do about the mandate attached to Obama’s stimulus package. In order to qualify, Nevada has to replace nearly 300 million of the dollars it just took away from education. To hear some of the GOP leaders like Bill Raggio, you would think Washington was asking them to give up drinking.
I told these leaders how to solve their budget problem. I told them over two years ago. They didn’t listen and I doubt they understand how to solve it now. The problem lies in an inability to think pragmatically. To them, the public consists of a flock of sheep. Their constituencies are the campaign donors and the businesses paying for all the little perks that make political office so attractive. The flock gets sheared and the donors and politicians reap the rewards. This is the way it has always been…until now. The public has begun to hold back their dollars and the legislature is running scared. Their greatest fear is that they might actually have to do their job and do it honestly. Obama’s mandate was a superb piece of manuvering.
Friday, February 6, 2009
Nevada Needs a Lotery
As of 2008, when Arkansas joined in, a total of 43 states have amended or re-written their constitutions to allow for a legal lottery. Two protectorates, Puerto Rico, and the US Virgin Islands each operate a lottery along with The District of Columbia.
If you go to Wikipedia and search for states with lotteries you will see a concise list and the style of lottery game they play. There is also a site maintained by the American Gaming Association that displays a list of U.S. States participating in Commercial Casinos, Indian Casinos, Lotteries, Pari-mutuel Wagering, Racetrack Casinos, and Charitable Gaming.
All of these lists are easily cross-checked. A search for Nevada will show that outside of commercial casinos, the state has almost no presence in any other style of gaming. A search of states with lotteries will show quite the opposite. States with lotteries also share the wealth with Indian Casinos, Pari-Mutual, Racetracks and Charitable Gaming. It takes a bit of digging, but the diligent searcher will discover that those states with Indian Casinos, Commercial Casinos and lotteries are also states where the companies behind commercial gaming in Nevada have a strong presence. You will also find that those states charge far higher gaming tax rates than Nevada. This begs the question, why, if those companies can easily afford to maintain casinos in a state with both higher taxes and a lottery, does gaming in Nevada claim that Nevada cannot afford a lottery, much less a raise in the gaming tax?
Besides having a run in the Nevada Legislature, I worked for nearly 20 years in gaming design as a graphic artist. I learned from the inside just how much intensity goes into gaining a gaming license in states outside of Nevada. Many of the major players on the Las Vegas strip have effectively gotten down onto their knees and begged to be allowed to build a property in places like Gulfport, knowing full well that they would pay a tax upwards of fives times higher than that in Nevada. When Governor Jim Gibbons suggested taking a half-cent from the room tax given to the resort association’s tourism board and using it to pay for road repair, the association nearly had a stroke.
The careful reader will notice a distinct disparity here. Gaming has run Nevada for so long that it cannot conceive of any other situation. If this state’s economy is to ever recover, it has to rely on other sources of income, but it also has to use pragmatism rather than favoritism in its tax policy. If a company can prosper in a state with a lottery while paying a higher tax rate, than it can certainly do so in Nevada. A rough run of the numbers shows that Nevada could increase its tax income by a half billion dollars simply by allowing a state lottery. Approximately half that amount goes to neighboring California and Arizona each year because they have lotteries and Nevada does not. The reason Nevada’s Legislature has not voted to allow a lottery? Key leaders in the State Senate and Assembly have been told by gaming that their campaigns would suffer if they allowed that to happen.
Right now Nevada’s Governor is suggesting that the state has to slash the education budget by nearly 50% in order to balance the budget. He has suggested this without even once looking at the end result of such an action. He has also refused to consider any common sense solutions that consider the raising of revenue. Allowing a future generation to suffer in order to save the present generation a few pennies is not being conservative, it is being foolish. Allowing the tax payer to choose whether or not to pay a tax is common sense and fits right in with the thinking of the founding fathers. Allowing Nevada to have a lottery is a good first step.
If you go to Wikipedia and search for states with lotteries you will see a concise list and the style of lottery game they play. There is also a site maintained by the American Gaming Association that displays a list of U.S. States participating in Commercial Casinos, Indian Casinos, Lotteries, Pari-mutuel Wagering, Racetrack Casinos, and Charitable Gaming.
All of these lists are easily cross-checked. A search for Nevada will show that outside of commercial casinos, the state has almost no presence in any other style of gaming. A search of states with lotteries will show quite the opposite. States with lotteries also share the wealth with Indian Casinos, Pari-Mutual, Racetracks and Charitable Gaming. It takes a bit of digging, but the diligent searcher will discover that those states with Indian Casinos, Commercial Casinos and lotteries are also states where the companies behind commercial gaming in Nevada have a strong presence. You will also find that those states charge far higher gaming tax rates than Nevada. This begs the question, why, if those companies can easily afford to maintain casinos in a state with both higher taxes and a lottery, does gaming in Nevada claim that Nevada cannot afford a lottery, much less a raise in the gaming tax?
Besides having a run in the Nevada Legislature, I worked for nearly 20 years in gaming design as a graphic artist. I learned from the inside just how much intensity goes into gaining a gaming license in states outside of Nevada. Many of the major players on the Las Vegas strip have effectively gotten down onto their knees and begged to be allowed to build a property in places like Gulfport, knowing full well that they would pay a tax upwards of fives times higher than that in Nevada. When Governor Jim Gibbons suggested taking a half-cent from the room tax given to the resort association’s tourism board and using it to pay for road repair, the association nearly had a stroke.
The careful reader will notice a distinct disparity here. Gaming has run Nevada for so long that it cannot conceive of any other situation. If this state’s economy is to ever recover, it has to rely on other sources of income, but it also has to use pragmatism rather than favoritism in its tax policy. If a company can prosper in a state with a lottery while paying a higher tax rate, than it can certainly do so in Nevada. A rough run of the numbers shows that Nevada could increase its tax income by a half billion dollars simply by allowing a state lottery. Approximately half that amount goes to neighboring California and Arizona each year because they have lotteries and Nevada does not. The reason Nevada’s Legislature has not voted to allow a lottery? Key leaders in the State Senate and Assembly have been told by gaming that their campaigns would suffer if they allowed that to happen.
Right now Nevada’s Governor is suggesting that the state has to slash the education budget by nearly 50% in order to balance the budget. He has suggested this without even once looking at the end result of such an action. He has also refused to consider any common sense solutions that consider the raising of revenue. Allowing a future generation to suffer in order to save the present generation a few pennies is not being conservative, it is being foolish. Allowing the tax payer to choose whether or not to pay a tax is common sense and fits right in with the thinking of the founding fathers. Allowing Nevada to have a lottery is a good first step.
Thursday, February 5, 2009
In A Recession Being a Politician Pays
Near the end of the 2007 Nevada Legislative Session, Richard Perkins, the City of Henderson’s Police Chief paid a lobbying visit to my office in the Assembly’s wing of the Nevada Legislature. When he left, I had a feeling I should take a shower to wash off the corruption. Yesterday an article appeared in the Las Vegas Review Journal that confirmed that feeling.
The Henderson Chamber of Commerce refused to support my reelection because I stood up to a corrupt casino owner. Terry Graves, on of the officers and a chief lobbyist for the chamber was particularly upset about that perceived betrayal of Republican values. To today’s GOP, there is little difference between Republican and Democrat. They both value campaign dollars above human life. As the Assembly Speaker, Mr. Perkins cost Henderson Businesses millions more by raising taxes that what I would have by forcing some honesty into the system. Perkins is the one they hired at a retainer of $10,000 a month.
Politics has developed an ingrained system of corrupt behavior and corrupt deals. All of these dealings and doings violate the law, and in some cases the ones doing the violation wrote the laws they break. If that sounds monumentally cynical, it is. It reminds me of a story of two politicians arguing. In the middle of the argument, one stands and shouts at the other, “You’re a liar!” The one accused nods and replies, “Of course I am, but hear me out!”
In the Nevada Revised Statutes there is a provision that forbids a public servant from acting as a lobbyist before a certain period of time has elapsed. This is a sort of “cooling off” period. During his time as Assembly Speaker, Mr. Perkins expressed concern over those who violated that rule. Apparently the rules do not apply where he is concerned. We have yet another case of a politician following the “do as I say, not as I do” doctrine.
As reported, Richard Perkins left the Henderson Police Force with a lifetime pension of $99,400 a year. The City of Henderson, paying that pension, seems to have money to burn because they granted their ex-police chief a one time separation payment of $242,132 and will be paying him $120,000 per year to lobby the legislature. The legislature only meets every other year, and only for 16 weeks, but Perkins will receive his salary every year. Not bad for part time work.
What is remarkable is that according to Nevada law, it is illegal part time work. Remember, according to the law, public servants cannot be hired as lobbyists right out of retirement. The City of Henderson and Mr. Perkins claim to have gotten around the law by hiring a corporation, not a person. The corporation? Richard Perkins, Inc.
The Henderson Chamber of Commerce refused to support my reelection because I stood up to a corrupt casino owner. Terry Graves, on of the officers and a chief lobbyist for the chamber was particularly upset about that perceived betrayal of Republican values. To today’s GOP, there is little difference between Republican and Democrat. They both value campaign dollars above human life. As the Assembly Speaker, Mr. Perkins cost Henderson Businesses millions more by raising taxes that what I would have by forcing some honesty into the system. Perkins is the one they hired at a retainer of $10,000 a month.
Politics has developed an ingrained system of corrupt behavior and corrupt deals. All of these dealings and doings violate the law, and in some cases the ones doing the violation wrote the laws they break. If that sounds monumentally cynical, it is. It reminds me of a story of two politicians arguing. In the middle of the argument, one stands and shouts at the other, “You’re a liar!” The one accused nods and replies, “Of course I am, but hear me out!”
In the Nevada Revised Statutes there is a provision that forbids a public servant from acting as a lobbyist before a certain period of time has elapsed. This is a sort of “cooling off” period. During his time as Assembly Speaker, Mr. Perkins expressed concern over those who violated that rule. Apparently the rules do not apply where he is concerned. We have yet another case of a politician following the “do as I say, not as I do” doctrine.
As reported, Richard Perkins left the Henderson Police Force with a lifetime pension of $99,400 a year. The City of Henderson, paying that pension, seems to have money to burn because they granted their ex-police chief a one time separation payment of $242,132 and will be paying him $120,000 per year to lobby the legislature. The legislature only meets every other year, and only for 16 weeks, but Perkins will receive his salary every year. Not bad for part time work.
What is remarkable is that according to Nevada law, it is illegal part time work. Remember, according to the law, public servants cannot be hired as lobbyists right out of retirement. The City of Henderson and Mr. Perkins claim to have gotten around the law by hiring a corporation, not a person. The corporation? Richard Perkins, Inc.
Monday, February 2, 2009
Workers Compensation? Not if you’re the Worker.
NRS 616D.030 Limitation of liability of insurer or third-party administrator; administrative fines are exclusive remedies.
1. No cause of action may be brought or maintained against an insurer or a third-party administrator who violates any provision of this chapter or chapter 616A, 616B, 616C or 617 of NRS.
2. The administrative fines provided for in NRS 616B.318 and 616D.120 are the exclusive remedies for any violation of this chapter or chapter 616A, 616B, 616C or 617 of NRS committed by an insurer or a third-party administrator.
The above provision in the Nevada Revised Statutes is a nasty bit of legislation designed to allow an insurance carrier to lie, cheat, steal, and even commit third-party murder and get away with it. Section 1 says that the policy holder cannot sue the insurance company or any of its agents even if they act in bad faith. Section 2 says that the fines the administration, read insurance commissioner, a politician reliant on the industry for his office, is all that can be done.
So, if a health insurance company or a workers compensation carrier decides that cheating a policyholder is more profitable than paying for desperately needed care, there is nothing the injured party can do. The Nevada Legislature, slave to dishonest business interests, said so.
As a Nevada Assemblyman, I was given a tour of the executive offices of Health Plan of Nevada, the state’s largest HMO. The office of HPN’s CEO was a single room larger than my house and outfitted in a splendor that would have embarrassed royalty. That is where the majority of your insurance premiums go. Why do you think the legal profession has made itself rich by building a business squeezing out a slightly larger award than what the insurance company wants to hand out?
An insurance policy is a contract and in any other circumstance a contract binds both parties equally. Somehow, in this case, the odds have shifted over toward one side. Now insurance is not a promise of coverage but more of a ponzi scheme. The policy holder saves a tiny percentage over what they may have paid for their loss while the CEO of the company issuing that coverage buys a new corporate jet.
One of the most prestigious hospitals in the world is the Mayo Clinic. That clinic is non-profit because those who started it felt that it would be immoral to profit off of peoples’ suffering. I tend to agree. In fact, the medical profession should no more be a path to wealth than being a pastor in a church. Health Insurance and Workers Compensation Insurance should also be non-profit industries. I ran a quick check of the numbers. If health insurance and hospitalization went non-profit and its staff was paid a decent wage, the cost of healthcare would drop by over 50%.
Some claim that if such a program were implemented, we would descend into the same morass that Canada’s socialized system endures. Not true, people would still have to pay, but they would be paying less for more. Not more for less, which is what we have now. All we would be doing is removing the sharks from the pool, and that is not a bad thing.
1. No cause of action may be brought or maintained against an insurer or a third-party administrator who violates any provision of this chapter or chapter 616A, 616B, 616C or 617 of NRS.
2. The administrative fines provided for in NRS 616B.318 and 616D.120 are the exclusive remedies for any violation of this chapter or chapter 616A, 616B, 616C or 617 of NRS committed by an insurer or a third-party administrator.
The above provision in the Nevada Revised Statutes is a nasty bit of legislation designed to allow an insurance carrier to lie, cheat, steal, and even commit third-party murder and get away with it. Section 1 says that the policy holder cannot sue the insurance company or any of its agents even if they act in bad faith. Section 2 says that the fines the administration, read insurance commissioner, a politician reliant on the industry for his office, is all that can be done.
So, if a health insurance company or a workers compensation carrier decides that cheating a policyholder is more profitable than paying for desperately needed care, there is nothing the injured party can do. The Nevada Legislature, slave to dishonest business interests, said so.
As a Nevada Assemblyman, I was given a tour of the executive offices of Health Plan of Nevada, the state’s largest HMO. The office of HPN’s CEO was a single room larger than my house and outfitted in a splendor that would have embarrassed royalty. That is where the majority of your insurance premiums go. Why do you think the legal profession has made itself rich by building a business squeezing out a slightly larger award than what the insurance company wants to hand out?
An insurance policy is a contract and in any other circumstance a contract binds both parties equally. Somehow, in this case, the odds have shifted over toward one side. Now insurance is not a promise of coverage but more of a ponzi scheme. The policy holder saves a tiny percentage over what they may have paid for their loss while the CEO of the company issuing that coverage buys a new corporate jet.
One of the most prestigious hospitals in the world is the Mayo Clinic. That clinic is non-profit because those who started it felt that it would be immoral to profit off of peoples’ suffering. I tend to agree. In fact, the medical profession should no more be a path to wealth than being a pastor in a church. Health Insurance and Workers Compensation Insurance should also be non-profit industries. I ran a quick check of the numbers. If health insurance and hospitalization went non-profit and its staff was paid a decent wage, the cost of healthcare would drop by over 50%.
Some claim that if such a program were implemented, we would descend into the same morass that Canada’s socialized system endures. Not true, people would still have to pay, but they would be paying less for more. Not more for less, which is what we have now. All we would be doing is removing the sharks from the pool, and that is not a bad thing.
Subscribe to:
Posts (Atom)
