RE: OT- Anyone go see Obama at Toyota Center?
Perhaps I should clarify what I'd like to see from Obama or whomever before I'm comfortable giving him/her my vote--or living in a country with him/her as president. I don't see much in the way of these ideas from anyone in the race from either party.
1. For what we spend on the myriad of welfare programs, we could pay $40,000/year to every family of four below the poverty line. This means we could get rid of 99% of the current welfare programs and replace them with a program that would put a guaranteed floor under incomes for every person in the country--and save money in the process. Milton Friedman's negative income tax concept is probably what I'd use for a basic approach. That approach would solve one big problem with current welfare--the cliff vesting, where you are eligible either for the whole shebang or for nothing, which serves as a huge detriment to people seeking a first job. The problem has always been that when this has been proposed, it has been as something to be done in addition to, rather than instead of, the existing welfare morass. I'm saying do away with the current structure and do this instead. Allow the states and charitable organizations to carry on the focused programs if they want to (my prediction would be that some would, some wouldn't).
2. For about what we spend per capita on Medicare and Medicaid, France (under an insurance model) and England (under a single-payor model) provide essentially a mediocore HMO to every citizen, with the ability to opt out and obtain medical care on a fee-for-service basis from physicians in private practice. You can buy health insurance to cover the opt-outs and employers regularly provide health insurance as a benefit (because they want workers to go get surgery and get back to work instead of waiting in the queue). Think of the way we do public schools--you can go to Westbury for free, or you can pay to go to Kinkaid. The fee-based services are relatively cheap--my mother's hip replacement in Paris cost 1/3 what one of my business partners paid for the same operation here at about the same time. Our social programs cost so much and are so inefficient because we spend 75% on administration and 25% on benefits. This is largely due to the republican insistence on means-testing everything. It becomes entrenched when the top administrators in every program become enamored with their salary, perks, and power, as I mentioned in an earlier post. Keeping the administrators well provided for becomes more important than actually helping anyone--particularly those whom the program was intended to help in the first place.
3. We have the second-highest corporate income tax rate in the world, and we are losing jobs and suffering from a huge negative trade deficit, and nobody seems to be connecting those dots (actually McCain has started a bit). Only Japan has a higher corporate tax rate, and they tax dividends and capital gains from sales of stock at only 10%. Obama says in his ads for the Texas primary that he is going to (1) tax corporations more and (2) keep jobs home. Those two goals are contradictory. Taxing corporations is every demagogue politician's favorite whipping boy, but corporations don't pay taxes--their customers do. If we raise taxes for oil companies, Exxon simply raises the price of gasoline to cover it. They can do it because their competitors are all by definition subject to the same tax and therefore will see the same cost increase and respond with the same price increase. When viewed this way, the corporate income tax is actually probably the most regressive tax in our system. It is certainly no less regressive than a value added tax, which is what Europe and most of the rest of the world use--and what has been proposed here as the so-called "fair tax."
4. We are spending more to defend Japan than the Japanese are, and more to defend Germany than the Germans are, and we don't understand why the dollar is declining versus the Euro. The Cold War is over--we won--and we don't need troops in Germany to keep the Russians out. If Germany is worried about keeping the Russians out, let German taxpayers pay German soldiers to keep them out. Also on the subject of the military, the key to keeping a large and capable defense capability without incurring prohibitive costs is keeping a large part of that capability at a reduced state of readiness. I'd favor going to more of the Swiss/Swedish/Israeli model, with much greater reliance on reserve forces. Once we're not defending Germany and Japan, this would be a lot easier to do. An added advantage would be that any military action would impose a swift and sure burden on the domestic economy, which would tend to discourage the present tendency toward sending the Marines every time there's a problem. There's been a lot said about the concept of a "just war," which usually involves a couple of principles, namely (1) don't fight a war unless the reasons for doing so are compelling, and (2) when fighting a war, minimize damage by using the minimum force possible. I'll agree with (1), and at this point I'm not certain whether Iraq ever passed that test or not (though my tendency is to think that it probably did). I think (2) is well-intentioned, but applying it in practice means getting bogged down, over and over, in the type of quagmire which Vietnam was and Iraq is. If you're going with a military solution, apply the maximum force to get the job done in the minimum time. That's ultimately the way to have the fewest casualties. If you're not sold on maximum force, then the situation isn't right for a military solution. This is a problem whenever military decisions are made by people who didn't serve--whether they were "draft dodgers" or put in BS time in the air national guard.
5. Our dependence on imported oil is a major economic issue, a major environmental issue, and a major national security issue. If our oil use per capita were equal to western Europe's, our oil imports would be minimal to nonexistent. Brazil decided 30 years ago to become energy self-sufficient, a goal that was seen as ridiculous because they had virtually no domestic oil and gas production at the time. Today they have virtually achieved this "impossible" goal. They have some offshore production, which largely goes to export. They've done it in a variety of ways, including extensive use of sugar-cane-based ethanol and bio-diesel. Our ethanol program suffers because the pork-barrel midwestern politicians (including Mr. Obama) have enacted significant subsidies to reward highly inefficient corn-based ethanol (corn ethanol yields 2 Btu's per every Btu consumed to produce it, with sugar cane the ratio is 8 to 1). Those subsidies are likely to stay in place at least as long as the Iowa caucus leads off the presidential season.
6. Many people in the Arab world hate us--not because we exploit their oil (we pay for it, and they are happy to take our money) but because we try to micromanage the westernization of their society. Bush calling our troops crusaders doesn't help any. In trying to make the rest of the world act like Americans, and intervening every time they don't, we run a tremendous risk of alienation. I favor the standard libertarian triad--free trade, non-intervention, and nuclear non-proliferation. Bush has said repeatedly that democracies don't go to war with each other; actually they do, but trading partners don't. About 95% of the time, matters where we might intervene are domestic matters that will resolve themselves better if we stay out. Where human rights are at stake, the UN is the appropriate vehicle for resolution; Darfur should be a UN problem, and we should make sure that it is. We should make it clear to other nations that we honor our citizens' (and theirs') rights to life, liberty, and property, and we expect them to do the same. We will intervene unilaterally only in those cases where Americans' life, liberty, and/or property are threatened. And if we do intervene in your country, we'll make sure you wish that we hadn't. We can't make everyone like us, but we can make them respect us.
7. Our environmental scheme isn't designed to protect the environment--it's designed to protect the incomes of environmental lawyers and consultants. I know, I've been both of those. We could accomplish a lot more with more market-based incentives--like carbon trading. But of course, that would upend the power bases for thousands of EPA administrators and Beltway Bandit lawyers and consultants.
I spend a lot of time in other countries, and I see a lot of models in other countries that we could well emulate. I see us as being in the same place on a lot of social issues that Europe was after WWII. They tried the full-blown socialist approach, found it didn't work, and are now turning to more market-based approaches that do work. I don't see why we have to go through the same 50 years of experimenting. Let's just learn from them and go directly to what does work. I would generally be considered conservative in the sense that I favor proven ways over fancy-sounding new schemes. But in that regard, I don't care where it was proved--something proved in Europe is better than something that isn't working here, just as much so as something proved here. They've got some bad ideas too, and I'm not in favor of bringing their bad ideas here--just the good ones.
(This post was last modified: 02-25-2008 06:01 PM by Owl 69/70/75.)
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