The Big headline of the Republican Primary Debate at the Reagan Library: “Social Security is a Ponzi scheme – Gov. Perry?

Keywors or Terms: Regan's Library; Republican Nomination; Ponzi Scheme; Governor Perry; Social Security; Elder's and retirees welfare; Environmental Protection Agency; Climate Chahge Science; Tea Party; Brian Adams (NBS- News) and John Harris (Politico)

In his first debate as a candidate for the office of US Presidency at President Reagan’s Library, Simi Valley, California, Governor Rick Perry offered what would probably turn out to be the biggest hurdle for him in being the Republican flag bearer in the 2012 National Election. In a debate proctored by Brian Adams of NBC News and John Harris of Politico, Governor Rick Perry not only made what is probably going to be seen as a gaffe by main stream Republican Party, he railed against the social security program as a ponzi scheme. While remaining aggressive and countering the position of former Vice President Cheney and hitting hard on Karl Rove, a mainstream Republican strategist, Governor Rick Perry likened Social Security to a criminal enterprise.

Perry believes that he has done a better job in creating employment at the state level than his second closest opponent, Mitt Romney. He not only discountenance main stream Republican ideologues like Karl Rove, he went on a personal attack on President Obama, calling him a liar on the issue of El Paso, Texas's safety and Security. Rick Perry’s new personal attacks may sit well with the Tea Party faction of the Republican Party; but, will probably steer away voters from him in a general election, as many voters understand that Perry’s characterization is not only untrue, but demeans the office of the United State’s Presidency, which is still high on the pedestal of everyone. 

Governor Rick Perry is fighting for the hearts and souls of the extreme right, working his base in the south and espousing the vulnerability of Romney for his religion in the Southern Bible-belt America. If Governor Rick Perry was well qualified to be a candidate for the office of the Presidency as forward written by Newt Gingrich in Perry’s book; his performance regarding last night’s debate is simply this: The front runner, Governor Rick Perry, is not only a candidate that has a basket mouth but one that will pull Americans apart, considering his gaffes. His anti-federal government, anti-establishment, anti social security and Medicare programs, pro-secessionist and anti-Federal Reserve Bank Chief and or system, would probably go down as the best strategy for playing to his Republican right base; and, the worst strategy for attempting to win the nomination of a major political party for a general election.

While it may look too late to have Governor Perry adapt to a new attitude of civility in American politics, it is essential to reiterate that Perry’s candidacy is probably only a hair high over Congresswoman Bachmann’s Tea Party constituency’s bravado that does very little for America. American Voters may be seeking a President who could take this country from good to great in the task of jobs’ creation; but they are hardly looking for a President who is not cautious with his words. In observing Perry get off on other co-aspirants on the debate podium, one is attuned to offer his candidacy a chance at the highest political office in the land; but, his dossier of gaffes just in the first month of his entering the nomination contest for the Republican party are now making or about to start making many voters have a second thought, even within conservative party faithfuls. Governor Rick Perry may be good for Tea Party faction of the Republican Party; however, he is too extreme for main stream American voters.

Of course, Governor Perry may be focusing on playing to his newly found Tea Party base, attacking Social Security as a criminal enterprise and posting that Social Security Program is a monstrous lie, his newly found tirade is hardly meaningful for someone who is result-oriented for the nomination as his Party’s flag bearer. A governor making toxic comments like everyone knows Social Security is a ponzi scheme, or is anti-science and anti-evolution, is probably not an ideal candidate the mainstream middle class Americans in the Republican Party want to represent them in the coming contest. Fixing the shortcoming of the social security system may be a wise choice to save the whole social security program; however, abolishing a social policy that has worked very well for keeping elders out of poverty for over half a century is neither a good medicine for the economy nor a great strategy for a candidate seeking the votes of older Americans. Social security program worked very well for over half a century before congress began to raid the fund; however, coming out of the woodworks to terminate the program as proposed or anticipated by Governor Perry, is hardly realistic. The challenging economic environment may be dictating a singular spotlight on one of America’s safety net for our retirees and those who can hardly help themselves during trying time; however, it is unprincipled for an aspirant for the office of the Presidency to attack the program under the disguise of States’ rights as against federal right.

Governor Perry may be touting his qualification for the office of the Presidency to his largely anti-Mormon base, his appraisal of social security as a criminal enterprise point directly to his less than stellar qualification as a college student at Texas A & M University. A governor and candidate with less than stellar undergraduate and governance performance, may be okay to lead the state of Texas with a quarter of its population without health care insurance,  poorest high school graduation rate and majority residents working probably at the lowest paying jobs and most deplorable working conditions, he is absolute unsuitable for the office of the United States President based on his state’s record over many aspects of quality of living. America is seeking a President who is forward looking, motivated to make a change in their quality of life through better jobs’ opportunities; however, they are not looking for another Texan Governor that offers more bravado than substance. A candidate for Presidency, who shows a myopic view of science, men and women in his caliber; or, calls the President a liar, is absolutely unsuitable for that esteemed office.

Governor Perry may be a front runner among aspirants for carrying the flag for Republicans in the 2012 general elections; his un-insightful comments about independent public officials like the Chairman of the Federal Reserve and the President of the United Sates make him unqualified to lead the free world. Tea party members may be inspired by the aura of Rick Perry, but his less than endearing comments about important public policies, institutions, and issues that affect more than 60 American elders, make him unsuitable to be voted into the Presidency by mainstream American voters. Challenging President Obama to a second term may be important to many Republicans, however, oversimplifying the problems confronting America, getting into personal attacks on public officials or signing pledges that pin one’s choice to a set of values or positions that may scuttle the choices of Americans is unacceptable and uncautionable.

A compelling and decisive choice of a President must not be maligned by questionable assessment by an aspirant to the office; neither should a candidate for the office of Presidency, shuffle between critical national agenda or issues that he or she has a shallow knowledge about. Governor Perry make comments that fly in the face of scientific research and avoid mainstream voters conviction in evolution theory; he fails to recognize the importance of an Environmental Protection Agency and chooses to be oblivious to the reality of globalization. His practice of extremism for the sake of nomination or out of probable ignorance is tantamount to duplicity. Governor Perry’s absolution and ignorance about climate change may have a monstrous impact on the future of America, if he is nominated as republican flag bearer and ends up winning the general election out of default or genuinely.

Jobs Creation: Do Republicans see anything beyond cutting taxes for the Rich?

Keywords or Terms: Republican Party; Gov. Romney Jobs Plan; China; India; Trickle-down Economics; Corporate; Tax Breaks; Foreign Wars; NAFTA; President Obama; Infrastructure Spending; Tax breaks; and Bold and Revolutionary jobs’ creating strategy.

Within the Republican Party, are conservatives, ultra-conservatives, moderates and believe it or not, some liberals. Each of these groups has its favorite candidate among the slate of aspirants for the office of the Presidency in 2012. When each group member listen to any aspirant render a speech, each hears his or her own biases. But Governor Romney’s Speech on jobs' creation beats so many hollow to a point that some plainly said, there is hardly any thought or revolutionary reasoning in the aspirant’s proposal on the endeavor. In one sentence Romney wants to cut taxes for the rich, expand corporate welfare, drill more oil and slam down China for monetary policy. The blog today makes a case that it is going to take more revolutionary and earth shaking strategy than the old worn and unresponsive Republican mantra for resolving America’s problem of unemployment.

Given to the usual mantra of Republican strategy for governance, cut taxes, cut government to the bare bones, expand government corporate welfare, exploit more natural resources and go after the exclusionary communist state, Romney exhibited laziness of thoughts, absence of understanding of the reality of globalization in the new world order and a genuine understanding of what is going to take to turn this economy around. Governor Romney repeated the same things previous Republican Presidents advanced and romanticized with, which hardly yielded positive results for job creation in similar economic environment; or, offered solid solutions for unnerving the writhing grips of high unemployment. Romney identifies with the old Republican hollow mantra: Trickle-down Economic Theory or Reaganomics. This is a policy that Reagan himself relegated to the back waters, as he increased spending on some social welfare programs that were once criticized as bloated and reason for the nation’s huge deficit in late 70’s and early 80’s. Romney failed to address some short comings of NAFTA, which many observers of public policy denounce as one of the reasons, why unemployment is so high in today’s America. Although I do not share that last observation, as I am not so much of a protectionist, I still believe that there are some issues with NAFTA that are not working completely in the interest of America’s economy.

Republicans are completely focused on unseating President Obama; hardly taking cognizance of what it takes to address the jobs crisis in America. A survey taken recently by the Pollster found President Obama’s job approval rate at 62%; implying 38% are still likely to give him the benefit of doubt. The reason for his poor score card has been associated with how he has handled the economy. There is the argument that our congress and senior politicians, from both aisle of congress, have failed to address policy issues in bills that could have saved the nation from the pains and pangs of unemployment. Republicans have remained the stumbling block all the way, failing to stand up for what the people want: jobs, jobs and jobs, again. Democrats have not fared much better, considering that their jobs creating initiative has not been huge enough to create the required dent in the nation’s unemployment. From recent polls come the optimism of 38% percent of Americans; that, the President has stood firmly in support of America’s interest and showing commitment to grow this economy by creating jobs; but it seems that the nation’s tax laws reward more overseas investments by corporate America. The tax loop holes have made it somewhat difficult for the nation to grow jobs at the rate necessary to deal with high unemployment or a cyclical economic regime. The argument is for a revised tax codes among others, to help kick start the economy and grow jobs in America. The challenge for President Obama in his forthcoming speech to the joint session of congress on jobs’ creation is how to engage the 62% of Americans who are not so fund of his administration’s effort on job creation. It is up to the President to deliver and save his chance at a second term in his forthcoming speech to the joint session of congress and the nation.

According to Warren Buffet, it is about time the rich pay their fair share of the nation’s revenue shortfall by accepting increased taxes; and, better shared sacrifice from people like him. Similar observations have been made by the GAO, which indicate that if the nation allows President Bush’s tax cut for the rich to expire this coming January, the nation will be able to cut its deficit in half, that has so much been the concern of the Republicans. President Obama may only succeed by going beyond a small planned infusion of government’s investment in jobs creation. The Professional Association of America Engineers has indicated that there are about two and half trillion dollars infrastructural spending needed now to keep pace with our national needs and future expansion. Investing money in infrastructural refurbishing, rebuilding and enhancement are best bets for creating immediate jobs in the economy. Protecting seniors’ retirement portfolios and keeping them in their homes are essential ingredients for unraveling the current economic depression. Now, does Romney’s Plan or pseudo plan scratch the surface of these problems; or attempt to accomplish anything worthy of note? The answer to that question is a resounding no.

Not all Republican’s response to getting the nation’s economy back on track are dismissive; however, when a candidate attempting to unseat the current President is engaging in demagoguery like growing our economy will be achieved by cutting taxes for the rich and not growing government, or offering loose statements about a foreign country’s currency regime, most of which Democrats have insistently made effort to correct in the past few years, you begin to wonder: where has Governor Romney been in the past decade, when Republicans opened up government coffers to the rich through huge tax cuts and engaged in lousy and contestable foreign wars? It is about time that Republican aspirants begin to make the most of the available economic advisers within their campaign ranks or team. Instead of improvising plans that have previously been offered and found wanton in fighting unemployment, Republican aspirants have to show a noticeable way to unravel the unemployment problem, if they want any voter to look their way come 2012.

For instance, President Obama’s last stimulus plan was close to fifty percent tax cut; yet we have not been able to make a huge dent in the unemployment rate. This same ineffective and somewhat loose strategy is being proposed by a candidate presumed to be a front runner among some Republicans for nomination to be the flag bearer for their party. I’m a proponent of effective economic public policy, which can make a difference in solving challenging national problems. Take investments in infrastructural spending to boost job creation for example; it isn't really a completely hot solution for resolving the huge unemployment problem; but, it stands the best chance at bringing about million of jobs in building, construction and manufacturing. This is the type of revolutionary and responsive initiative that is needed to engage this problem. Now, for this strategy to make a remarkable difference, the infrastructural spending must be huge enough to cut into unemployment rate across the board. As much as it is probably going to add to our deficit in the short-term, it stands a better chance of bringing about change in the number of jobs available to Americans, fifteen million of whom have been out of work one day too many. Yes, this concept may push so many fiscally concerned or conservative voters out of their comfort zone; however, it is probably the best or the most powerful to engage the unemployment problem that has beleaguered the nation’s economy recently.

Any job plan at this time in the nation’s effort or dilemma, must not only be revolutionary, it must be huge enough to make a noticeable difference in the unemployment problem and the challenges facing middle class America. Governor Romney’s plan looks more like an improvising plan to what Democrats have already tested and found insufficient to take on the problem. Romney’s plan makes so many Republican candidates that may be running behind him for the party’s flag bearer, awkward and utmost lousy in their efforts. Cutting corporate tax rate, expanding exploitation of carbon-based fuel sources, giving more tax cuts to the wealthiest among us and bashing a foreign country for her currency regime are not as revolutionary for any candidate seeking to unseat President Obama. A former Massachusetts governor that touts his 25 year experience in the private sector ought to do better than the plan advanced by Romney on jobs' creation.  Some critics have indicated that buying up failing firms or investing in companies to make quick monetary returns as characteristic of Romney’s past experience in the private sector, hardly translates or means experience in creating jobs; especially, when he had actually specialized in laying workers from his newly reconstituted firms after a buy out or take over. As the governor’s experience has involved, merging companies, cutting wages and unloading labor force after buying those companies on the cheap, it is really hard to believe that such a candidate can address the issue of jobs creation as we now need in America.

If Governor Perry is the Republican front runner by some polls out there, the ideal question for Mr. Perry now is: Where is your job plan or, when is he going to lay out his plan? The demand for work in America today is limitless. America is badly seeking plans and strategies that create opportunities for the skilled and unskilled labor force. Leadership in jobs creation is essential for the nation to match the challenge at hand. One half of the nation’s retirees’ wealth has evaporated and there is probably a glut of 4 million foreclosed homes and another five million in the pipeline, if the unemployment problem does not budge. The nation is not seeking a smooth talker or a wishful thinker, what the nation needs, is a leader who can get Americans jobs, allow them to hold on to their mortgages and rebuilding their lives once again! It is unlikely that Americans voters will simply improvise anyone for the current President just because he or she says he has the experience to create jobs out of merging companies or buying them on the cheap for a quick turn around; or that their state has the lowest unemployment in the past years. All those out of work seek employment and hardly care about promises or past achievements of any candidate for the White house’s oval office, at this time.

Labor Day Treatise: finding a road to economic recovery and solutions to high unemployment?

Keywords or Terms: Labor Day; Economic Recovery; Unemployment; Congress; Whitehouse; China; Macroeconomics Public Policy; President Obama; Capital Project; and Political Party Leader

How can America get out of this nasty recession? Would giving many speeches over the pains and difficulty of job loss be an ideal model for resolving this recession? In fact, is there a single silver bullet to solve the unemployment and housing foreclosures problems that have characterized this current recession? Despite the severity of the unemployment problem and home foreclosures, and their implication for quality of American life, it does not seem as though our Republican friends in congress are paying much attention to the negative impact of the current recession. In simple terms, the middle income groups – those who bust their butt to ensure that the engine of America’s progress doesn’t come to a halt – are probably obfuscated for good by the current nemesis of unemployment and dastardly effect of the recession. On Labor Day, the blog contemplates finding a road to economic recovery and solutions to high unemployment.

Democrats and Republicans in Congress must wake up to reality. They cannot continue to play politics with people’s lives and expect high job rating or positive fervor from the millions of Americans seeking employment. Statistics from United States Department of Labor show that in the preceding month, August 2011, not one single job was created in the economy. A 2009 statement from the former Chairman of Presidential National Economic Advisers, Dr. Summers, projected that high unemployment was going to be with us for a very long time. However, this does not have to be. This is America, a nation that once financed a Marshall Plan for Europe and lifted Japan from the depths and despair of the Second World War. A nation that once created jobs nearly every day during the late sixties, gave life to Taiwan manufacturing despite the oppressions of Communist Party Leaders in China. A nation where ‘made in china’ meant so little in the sixties and early seventies before Nixon went to China and projected the possibility for exploiting China’s cheap labor force.

Is this the same country that encouraged manufacturing in a country where the average high school graduate is better known for wrote memory rather than independent thoughts, genuine creativity or invention; which some absent-minded Americans are now touting as threatening America’s dominance of productivity in the world? Well, for those who have short-memory or may have forgotten: American Companies shipped America’s manufacturing industries to China and several other third world countries, because of government public policies that can be reverted! I have seen it done before and I know, if America and our congress are ready to deal with the unemployment problem and other associated problems of this recession, they can solve the current 15% unemployment problem. You cannot ship your manufacturing base to other countries and expect national unemployment to trend down rapidly. Manufacturing industries within our borders means jobs for our teaming millions. In short, a manufacturing base is a guarantee of jobs in any economy.

Our political leaders must not mind naysayers, they will always be with us, and we only need to prove them wrong or put them in their proper place, to get this country moving again. We can explore several alternative job creating public policies, because current policies and past initiatives of government under both Republicans and Democrats, encouraged firms to move capital and business overseas. The purpose of leadership is to bring about change where and when necessary, especially now with so many Americans out of work. The hard fact of the current unemployment is many Americans, professionals and non-professionals, college educated, old and young , workers are now out of work, just like high school diploma holders known in the past for the drudgery work. The task for our political leaders is to create a clear and aligned vision and strategies which will not only create jobs in the economy, but also hold them for longer than in the past. Congress must work with President Obama to translate his vision for immediate job creation to reality, once he gives his speech on Thursday.

It is okay to create jobs from government spending, because that is probably what we have left as many private sector gurus are holding tight to their money and not reinvesting in America to create jobs. We cannot allow the current disinvest behavior of many corporations and their executives to cascade into further disaster for the economy. It is also okay to spend on developing, upgrading and retooling skills of laid-off workers, so they can be ready for a newer and probably greener economy; without which, we may be looking at an unprepared labor force, unable to take on the challenge of the twenty-first century industry; and or, a 25% unemployment rate down the road. Our ability and capability as a labor force can only be enhanced at this time, if government investment in skills development and enhancements are not frugal. Yes, I have heard the political pessimists say we cannot afford this kind of government spending, but ask them what the alternative is, and they all come up with rambling and dabbling statements that exhibit their ignorance of macro-economics principle. Tough unemployment problem requires tough and determinant macro-economics public policy solutions, some of which may be unpalatable for a while.

Congressional leaders must understand that the ability to relate to the problems of the country is one crucial quality of leadership. Each congressional lawmaker, Republican or Democrats, come out of cities, counties and states that are looking at between six to twenty percent unemployment rates. Data of people out of work or who have dropped out of the labor force may not be complete; however, each lawmaker has a dossier of how bad things are in their constituency; and, many of them can truly tell you: “things are tough in the America’s wasteland.” The onus now is to set aside party politics and yield to the demands of millions of Americans for work. We cannot continue to have a nation of 'haves' and a disproportionately high number of 'have not’s. Seasoned politicians will tell you what we now have is a recipe for political unrest, just as we have seen in some countries of Europe, Middle East and Asia.

So much grandstanding going on among political party leaders in congress is not good; as most have failed to understand the human impact of prolonged recession; especially high unemployment in inner cities and among minority groups. Each party leader is currently protecting their political or ideological toughs and each to some degree, is looking away from the realities of unemployment among some sectors and areas of the nation. As any community action leader and planner know, without assertive and altruistic initiatives to resolve a very thorny problem in communities, it may just be difficult to bring about some order or change to a problem impacting a largely disproportionate number of people in the community. President Obama, a seasoned community organizer and politician, is probably seeking a team-based approach to resolving the high unemployment rate among Americans. It is now the responsibility of political leaders from both aisle of congress to give him the chance or benefit of doubt by avoiding party politics and grand standing, on this very nasty problem of unemployment.

There is hope that if both party leaders in congress engage with the President, it is possible to create jobs that can have huge impact on the unemployment rate. However, to arrive at this solution or destination, there is a need to engage the heads and hearts of every politician in congress, governors’ houses, policymakers at the federal level and in various state capitols, counties and cities. Everyone must now reject party politics or myopic political self-interest as the unemployment problem is an American problem, not a political party problem as many self-serving politicians want America to believe. This means, all hands must be on deck to bring about change to this skyrocketing unemployment rate, once plausible solutions are advanced by the President come Thursday.

The following is my contribution to the solution to the unemployment problem; a few of my suggestions I have blogged in the past and may resonate with some of my readers and politicians, who are truly interested in helping America take care of her number one problem, job creation:

1)      Investment in capital projects. No matter where you look, our roads, airports, dams, piers, bridges, classrooms and electrical power grids are crumbling. The dilapidated infrastructure can be replaced, with government investments in these endeavors, creating jobs in the construction, manufacturing and building industries.

2)      Elevating public laws to meet changing times. There are some outdated government regulations and laws that are encouraging disinvestment in America or shifting of jobs overseas. It is time to consider the day-to-day impact of stifling government regulations and laws that are making America’s entrepreneurs to shift businesses and money overseas. However, this effort must not be designed to undo or undermine necessary regulatory safeguards that are essential to running a safe workplace.

3)      Prioritizing Government Investment Projects. Proposed initiatives or public policy must focus on infrastructure projects that will create a large number of jobs, immediately. Policymakers in the Obama’s Administration cannot afford to see many Americans out of work by the first quarter of 2012; or else, President Obama’s second term is signora!

4)      Challenge the Status Quo. Take a firm stand on jobs creation, not only in the current recession, but also in the future ones. How about mandating constitutional amendment to guarantee that all people willing and seeking to work, finds employment? Well, that will be going too far, except one is a member of the Tea Party faction in the Republican Party? All jokes apart, it is known that faster job creation increases National Income and output; and, among other things, raises the ratio of employees paying into social security retirement fund, thereby lowering the average contribution of each worker to Medicare and Medicaid costs and similar social safety net. Now, those are genuine reasons to create jobs!

5)      Elevate Proactive Thinking in Labor Policy Formation. Consider other more responsive public policy than giving money to employers to hire and retain employees on their payroll. European countries would tell you from experience that such initiative or government programs hardly make much of a difference as many of such companies end up laying off those same workers, immediately the subsidy is over. Labor Policy contemplated must be clear, contextual and long term to be able to make an impact on the unemployment rate.

Frankly, there are no legitimate arguments to having unemployment as high as 9% in America. Government policies and political party leaders’ muscle flexing, or other minor inconsequential, can have huge impact on the number of workers in America. Yes, our economy suffers some cyclical inadequacies that make unemployment to rise or fall with the expansion and contraction of the economic indicators. However, once our political party leaders understand that the problem of unemployment is not the domain of one political party; the earlier we are able to resolve this problem. Further, the earlier politicians appreciate that finding solution(s) to the problem of unemployment cannot be completely left to a party leader in the Whitehouse; or, to leaders of political party in majority in congress; and that the problem impacts the lives of people, some of them family members, neighbors, friends, and acquittance, the better we are able to get ourselves out of this maze. Finally, unless our politicians appreciate that many of the 15 million unemployed are voters; and that if quick and drastic solutions is not found to the current unemployment problem, many of them will be thrown out of congress and White House, maybe we will start to see the silver lining at the end of this tunnel!

Of Storms, Hurricane and Tornados: surviving the winds and aftermath disaster?

 Keywords or Terms: Winds; Storms; Tornadoes; Hurricanes; National Hurricane Center; Meteorologists;  South Eastern and Eastern States; Experienced Residents; Storm Chasers;  Type A and Type B people;  Optimists; Risk Adverse; and Relaxation

I’ve always been intrigued by the hurricane seasons, not for the annihilating effect of the storms on the environment and people, or the damages to properties and pains left behind, but the uncommon and unusual state of the mayhem before another hurricane and storms hit. When the storms and hurricanes come, they come in multiples and no one can actually say they are prepared for them or that they have it together all the time. How about the adage: when it rains, it pours? But some resilient people in the path(s) of the storms inform me of the thrill of these times.

The National Hurricanes or Meteorologist Center that name these storms and hurricanes are occasionally confused, they interchange the historical experiences of one of the storms or hurricanes for another when reporting to the public. Perhaps the hurricane center’s meteorologists and or weather meteorologists want the names to depict specific aspects of the storms each year; however, survivors would rather forget the names and the experience. If you add the costs of the damages to the way of life of residents in the paths of the storms and hurricanes, you begin to understand, why the storms and hurricanes are no one’s cup of tea.

The historic high water levels of some rivers and inland water ways during and immediately after the storms, sometime test the mettle of inland tugs and barges operated by oil and gas companies. No wonder, oil and gas companies like most residents of the gulf and on the paths of the storms, are no fans of the destruction during this time of the year. The hurricanes and storms are hitting the Gulf Coast tonight and many residents of Florida and Mississippi coasts are not laughing or having any fun about the current storms and winds. No one in Southern Mississippi State or any others in the path of the winds in the east coast are brave enough to say they are ready for the challenge of the current tornado storms and or probable associated disasters coming with them. Not even last week’s experience with the storms in the northeast could have prepared anyone or companies to engage the destructive force of these new storms and hurricanes from Mother Nature.

My conversation with some friends and residents of Florida and Alabama today indicate that the big one is on the way and their effort at boarding up their homes and businesses are but, shallow sense of security meant for a feel good experience for those just being broken into the severe weather. As one of the older residents of Florida said: When nature comes with its power and fury, not even an iron gate can keep the water and winds out! Experienced residents of the Gulf Coast States have developed somewhat of a thick skin against the storms and hurricanes. A few of them actually look forward to the experience and intuitively prepare for them before they come down, each year. As unsettling and somewhat scary these storms and hurricanes are for first timers, there is a feeling among the old timers: what you can’t help, you learn to live with! What don’t kill you only makes you strong!! When the unthinkable happens, some residents in the paths of the storms, see it as old friends showing up, once again, in the neighborhood!!!

In ways many of us have never seen or experienced, the lure of the disorientation that accentuates or accomplishes the storms and hurricanes, are hardly one to be cozy about and or, cherish. But trust my experienced Gulf Coast heroes, storms, hurricanes and cyclones are just part of the deal of living in brave old stormy ally. The concept of being careful and apprehensive of the storms and the associated disasters are only for the faint at heart. Residents of the stormy ally are often ready with the sledgehammer to board up their residents and businesses; and, wait for the unpredictability of the storms. It is just a way of life they’ve all been accustomed to throughout the years.

Fast forward to a day like this, the unusual experience of standing on pins and needles among many families and relatives living far away from the path(s) of the storms; show the enormity of the stress and anxiety channeled through phone calls to ensure that all is still well with loved ones during these excruciating times. And, while many of our friends and relatives almost want us to relax and man up, the growing anxiety of time and the unexpected are combinations that keep us all awake as long as we know that our loved ones are in arms way. Many of our friends and relatives living in states that are often bombarded by the hurricanes and storms, show some resilience and bravery that will make a million of us crawl into the woodwork. The thought of our loved ones standing against the unexpected and unpredictable winds and tornadoes is sometimes, if not always, overwhelming, no matter how those friends and relatives tell us to relax! Like my wife says, the storms separate the Type A people from the Type B; it’s just the reality for those folks and somehow, they are able to wade the storms.

We are now in the middle of gusty winds, cold front, moisture and heavy rains, severe weather condition in the south east and east coasts. The meteorologists on the weather channel say the latest and current storm is called: Lee! What a name to give isolated storms in Georgia, Alabama, West Florida; and, flooding in many low lying areas in the east coast. You imagine when you are building a wind farm; you’ve got to expect many towers; that’s how some residents of the Gulf see the winds, waves and lots of rains accompanying the current hurricanes. Tropical storm Lee is giving Southern Mississippi residents run for their money; tornado is forecasted for most parts of the area; and the Doppler radar is as active as it can be or get. No one knows where the forward wind streams and flooding are going to head; and, all things are just unsettling in most parts of the eastern shores. Despite all these, some residents of the Gulf want to go surfing. Where to go guy? Mother Nature is being destructive or excited and all you can think of is going surfing? This is very dangerous, but some of the older residents of those areas are saying these are the best times to surf and swim; you get the feel of being in high heavens!

As with other parts of life, the storms and hurricane seasons remind all, how fallible life truly is; and, why nature has a grandeur plan for the whole of universe, bigger than anyone could ever imagine. You hear: here today, gone tomorrow; and, you wonder what these people are talking about? We are often so sure that all will work out well; or for the best. We are not sure, but we want to expect the best and prepare for the worst. A few want us to believe that there is hardly any disaster that the world has not seen; and just being pessimistic is not going to help anything differently. Somehow in between the known and unknowns, we find a middle ground, where we can show some sigh of relief after the storms and we hear our loved ones say: all is well. You know, some of us are risk averse, while others love the adrenaline and rush that comes with crisis or disasters. As unusual as it may seem to some, a few people actually likes disaster and the challenge to rebuild and start all over again. For this latter group: hurricanes and storms season are unbeatable exciting times. The first thing some in this group want to do is chase the storms and see where the tornado is going to hit the ground. You’ve heard of storm chasers and you wonder, what is wrong with this kind of people? Are they for real; or just ready to lay their lives down just for a cheap trill? However, seasoned weather scientists remind me that, if those storm chasers don’t understudy the storms, we will never know how the storms form; and or, how to better prepare for them. Oh my Goodness, imagine what Sally does for a living?

To the brave souls in Southern Mississippi and Central Alabama tonight, including Biloxi, Mississippi and Mobile, Alabama, my prayers are with you. To workers evacuated from the two hundred and thirty platforms and over twenty oil rigs in the Gulf Coast, you deserve to be safe, be thankful. To the moms and dad with children in the path of the storms, I pray you find some solace in understanding that your loved ones are safe; or as safe as they want you to believe and cherish. To the storm chasers, may the force be with you! To the weather forecasters, may you never miss a wind or storm as you read the radar. To apprehensive and risk adverse folks like me: may we learn to understand what it takes to be optimistic at all cost; and, probably learn to always relax!

Where are America’s Housing Market and Unemployment Rate Heading?

Keywords or Terms: Housing Market; Fannie Mae; Freddie Mac; Unemployment Rate; Housing subsidies; Nominal Interest Rate; Home Equity Loans; Government Revenue; Loan-to-value ration threshold; Employment Data; Public Employment; Private Employment; Economic Performance Indicators; Veteran Benefits; Social Security Benefits, Medicaid and Medicare Benefits. 

The challenging housing market and high unemployment rate in America inspire a review of past policies and some possible recommendation on the best options available to government to avert Economic Armageddon due to the slumping housing market and painful unemployment problem. Given that no true solution for the depressing housing market and unemployment rate can be complete without addressing government subsidies in the housing, banking and finance sectors, it will be premature to make recommendations that are short-term in unraveling current challenges. Further, it will be superficial to expect long term changes in the housing glut without addressing the underlying issue of subsidized home ownership strategy of the past decades, through subsidies to the US Mortgage Market, via Fannie Mae and Freddie Mac. As Banks refine their lending practices, making home owner’s credit tighter and the mortgage market a little more stable, with huge inventory of foreclosed homes, it may be time for the Federal Government to consider policy strategies that lessen its involvement in both banking and house ownership subsidies to avert the continued slump in the housing market. The blog today undertakes a discussion of strategies to counter the slump in the housing market and the unyielding unemployment problem in America.

Just as it seems infinitesimal at this time for the Federal Reserve to keep nominal interest rate at zero during high unemployment, the expectation that employment will grow without clearing of the housing glut in the market is probably over simplistic and whimsical. The disproportional distribution of the housing glut across many states in the union, complicates the tax revenue base for some bigger cities and markets with huge inventory of foreclosed homes. As the housing glut continues to grow partly due to high unemployment, it maybe necessary to pull out the mortgage interest deduction at 50% rate and initiate the taxing of rental property income to a threshold of 80%. Such policies are likely to increase government revenue, pull back government subsidy to the housing market and assist in the clearing of foreclosed homes in various markets; hence affording for increased activities in the building industry and some form of revenue base for many cities that are hurting due to poor tax base and over inventory of foreclosed homes.

The owner-occupier housing strategy buttressed by full mortgage interest deduction at the end of the year has created a high ratio of property ownership in the recent past. While very helpful to assist in increased home ownership, the challenges of the time demand that we look over most responsive public policies to effect immediate changes in the housing market. It is probably safe to assume that at the peak of the heated housing market, home ownership in the United States reached up to 70% of households. In hindsight, it is probably not the best policy to follow, even though; it places the country at the highest rate of home ownership in the world. The reality of a public policy that deregulated lending practices in mortgage financing and allowed banks to get into dubious derivatives without necessary oversight, is probably part of the reasons why the economy is in a slump and unemployment, out of whack. 


The competitive landscape that fuels cautious consumer behavior was absent just before the collapse of the housing market. Banks and finance houses manipulated screening, administrative and maintenance costs of mortgage loans. The net effective cost of underwriting loans became so small for banks as most  maintenance and administrative costs of mortgage underwriting were defrayed to Fannie Mae and Freddie Mac, who in turn seeded the risk involved in most of these underwriting to government bonds. The less than stellar practice that allowed home-owners to borrow against equity in their homes may work well for high income and rich folks, but it has been a disaster for the low and middle income earners, majority of whom became first time home owner under a vastly deregulated finance and mortgage market. The challenge now is how to restore confidence in the mortgage and housing market.

The insolvency of many banks and insurance companies in the beginning of the recession may partly be blamed for government subsidies of home ownership. The fact that Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Association) under-wrote the lending risks involved in home loans carried by commercial banks and other mortgage finance houses, created an impression that government guarantees aggregate credit risks that is undertaken by the financial institutions. Further, the fact that the bond market financed to some extent, Fannie Mae and Freddie Mac, allowed some banks and a few finance houses to avoid due diligence, which in turn encouraged frivolous mortgage products, which some banks and finance houses probably knew were dubious and criminally culpable, since the end costs of the risk were eventually shifted to taxpayers, but which those banks and finance houses could hardly pass over in the heat of the mortgage debacle.

The implicit federal guarantee of Freddie Mac and Fannie Mae, made effective rate of borrowing for home-ownership artificially low, as these pseudo-governmental institutions, were able to borrow at marginal cost over the treasury bills rate. Although they may want to deny it, mangers at Freddie Mac and Fannie Mae understood that an insolvency of their operations may cause disruptions in the whole financial system; however, they hardly felt any responsibility to adequately inspect all the devious derivatives or bundling from commercial banks and mortgage finance companies doing volume business in real estate lending. With unusual increases in aggregate mortgage delinquency from rising unemployment and sluggish economy, it was just obvious that foreclosure rates were going to go on the increase. With many banks and mortgage finance companies undertaking huge risks, with products like 'zero down, zero payment' for the first 12 months, 'roll into mortgage principal, interest costs of the first six months of a loan', and no one bating an eye-lid at Fannie Mae and Freddie Mac, because these pseudo government institutions considered their securities as substitutes or close to substitutes, for treasury bonds, no wonder the economy went into a spiral when the housing market bottomed out in the middle or at the end of the recession.

Many Americans are still trying to understand what was going on in the mortgage market and what exactly was the contribution of devious financial institutions, whether there were duplicities or omissions of any sort that may be considered criminal; however, as of to date, no one has gone to jail for the size of collateral deviousness involved in the mortgage risks taken by many banks and financial institutions. The tricky thing is, no one has been able to explain truthfully, how these duplicity and criminally culpable negligence have contributed to many Americans loosing their jobs during the recession. Many households have defaulted on their mortgage loans and a few have actually stayed put or walked away, deciding not to pay any more mortgage because their houses had lost too much value and probably are now worth less than half of what they paid for them at the height of the mortgage bonanza or boom. It is probably necessary to see that a few in the financial and mortgage industries went to jail for their complicity, and contribution to the recession; it is probably doubly necessary to investigate the extent to which executives at Fannie Mae and Freddie Mac knew of the devious derivatives sold to them, and which they in turn refinanced in the bond market. Without some form of accountability, it is probably unlikely that this or similar events in the mortgage industry will not repeat themselves.

Fannie Mae and Freddie Mac seem to have been a success story in helping Americans own their first homes, prior to the deregulation of the finance and housing markets. The fact that precipitous deregulation of the financial sector of the economy under President Bush afforded all types of devious marketing and transaction inadequacies, make it imperative that the fault of the tanking  America’s economy be laid squarely at the door step of the last Republican President. Dubious financial instruments or portfolios and renegotiated repurchase agreements littered the banking and mortgage industries, yet no one is paying for these. Imagine the absence of implicit guarantee of Fannie Mae and Freddie Mac for underwritten mortgage portfolios; wouldn't banks have been less frivolous and cautious as they underwrote many of the mortgages that are now in foreclosures? The fact that Fannie Mae and Freddie Mac, pseudo government entities, considered their debts just as safe as treasury bonds, probably led to the debacle in the housing market. It is time to undo the subsidies to the housing market in terms of direct interest rate write-offs for home ownership, to help correct for part of the problems associated with the housing glut and repercussions of high unemployment.

To get away from the housing slump, it may be necessary for government to tax the banks, insurance and mortgage finance companies and use revenue from these financial institutions’ to buy private mortgage loans that were dubious in writing. Use aggregate house values in each market as basis for valuing each delinquent private mortgage loans bought over and insist that newly purchased mortgages involve compulsory mortgage loan insurance to 100% value, plus 50% additional insurance coverage to be carried by banks and insurance companies underwriting mortgage loan for the first ten years. The additional insurance to be carried by banks must be sourced from private insurance companies not Fannie Mae or Freddie Mac. This arrangement will discourage lousy mortgage products marketed by banks and mortgage finance institutions. speculation in the housing markets by short-term investors, seeking to make a buck during the heated housing market.

To deal with the current foreclosure crisis, it is time to evaluate the trend in the liquidation sales revenue of foreclosed homes in various market regions and compare them with market prices of repeat sales index across regional markets. This will allow the government, banks and financial institutions appreciate the average losses in various market and use this as an index for underwriting future loans on mortgage products. It is apparent that the realistic values of homes sold at the peak of the housing boom or mortgage debacle was hardly based on the realistic value of each home sold. It is known that many home owners avoid foreclosures by either selling their homes, refinancing them or paying off the arrears on the mortgage. This edging behavior is likely not to stop except there are incentives for home owners provided by the lenders. The volatility of the housing foreclosures depends on the speediness of either of the latter three actions in the various market regions. Areas with high unemployment has suffered tremendously from the speediness with which either of the three actions were undertaken by home owners. The removal of government subsidies of mortgage interest is to make carrying mortgages at higher loan to income threshold less attractive. Effective interest rates has the tendency to weed out those home-owners likely to default from entering into mortgage contracts that are excessive for their income threshold.

New data on employment has not been very promising. Though companies are recruiting and hiring, the employment rate is not keeping pace with the number of people seeking work.There is going to be a need to re-energize employment by investing in programs to encourage increased and stable employment in virtually all sectors of the American economy, including expansion of public employment. The argument that the private sector creates jobs is well taken; however, cities, counties and state governments have been shedding jobs in recent years at unprecedented rate. Employment programs must not only address increased private employment, there is need to create jobs for teachers, fire-fighters, police and other public employees, if we are to revert the trend of the vehement unemployment rate. Unfortunately, it is fiscally unlikely that the country can afford this choice; however, if Republicans are willing to play ball it is very possible to accomplish this end in the coming twelve months and more.  The United States Congress must get on board now, if the unemployment problem is not going to end up being a political fiasco in the coming general elections.


The job creation strategies anticipated to be released by President Obama must include the following, if a dent is going to be made in the unemployment problem in the country: 1) Subsidies for increased private employment, including investments in schools and college buildings, waterways, airports and highways redevelopments and expansions; 2) ample public employment to be financed with increased government revenue base, including jobs at state, county, towns, cities, parishes, burroughs and similar local governments; 3) investments in social support programs for Afghanistan, Iraq and Libya veterans; 4) private and public reinvestment initiative in health support programs for infants, adults and vulnerable groups; and, 5) encourage the Federal Reserve Bank to increase the nominal interest rate to at least one percent to see what difference this will make in the market place. One thing to definitely avoid and to campaign against, if he so chooses, is an obligatory balanced budget initiative as advanced by the Republicans, as this will only stifle government's ability to react to emergencies as the recent floods, hurricanes and storms in the North East, funding of social safety net as the Social Security Benefits, Veteran's Benefits, Medicare and Medicaid. The aggregate welfare effect of obligatory balanced budget initiative is close to negative, no matter what Republicans may continue to espouse.


Finally, there is the question of whether government subsidies contribute to federal deficit?  A very credible answer to this question is simply this: If the private sector continues to sit on tons of cash in the bank without investing in the economy, the federal government has the obligation to invest in the economy to prevent further deterioration of the economy. The essence of government spending is to force increased economic activities that can help expand the economy and create jobs. One way for the nation to succeed at this time is to ensure that economic growth and jobs creation are fore-front in the list of things to be done to help expand national income. For instance, Federal Government needs to be innovative in its approach to resolving the unemployment problem; and, in its effort at measuring economic performance variables or indicators, including how stimulus spending are invested in various sectors of the economy; else, we end up with similar result from previous effort.

Unemployment: Finding Immediate Solution to a thorny national problem?

Keywords or Terms: Sluggish Economy; Unemployment; Presidential Politics; Acrimony; State of Texas; The Feds Chief; Federal reserve Bank; Keynesian; Monetarists; President Obama; Rick Perry; Dr. Bernanke 

There’s more to the unemployment problem than many of our lawmakers are willing to accept. Now that the economy has tanked from the sluggishness in response from congress and probably the Whitehouse, some opportunistic presidential aspirants are using the unemployment issue as a political kick ball. Governor Perry, yes that Texas Cowboy, who was a lackluster student at Texas A & M, just labeled President Obama as a job killer, a stretch at best; as the private sector has been creating jobs in the economy, but not at the pace needed to catch up with a huge 9% and more, unemployment problem. Could you imagine a Republican governor or lawmaker lambasting President Obama as a job killer after what happened with the recent congressional debt ceiling debate?

Can you imagine any Republican, congressional lawmaker, governor or public, being able to wash his or her hands off the downgrading of America’s credit worthiness by Standard and Poor? Can you frankly say that Republicans pulled out all the stomps in the current congressional session to ensure that the fiscal health of this country was not jeopardized? Can you doubly imagine another governor from the state of Texas leading this country; or, advocating against expending federal stimulus funds to create jobs? A three-term Republican governor of the State of Texas, who once wrote a letter to Dr. Bernanke, Federal Reserve Bank Chief, asking for stimulus fund for his state, after initially turning down the advancement from the Feds, is accusing the same Feds Chief of possible treasonable felony? This is how low some delusional Republicans are willing to go to unseat President Obama. To put it very bluntly, the Republican leadership in the 112^th Congress has failed to address the paramount problem facing America today: Jobs creation; whether they believe it or not, the congressional instrument that could help create jobs for the more than 25 million unemployed Americans, will have a tough time going through the acrimony of the current congress.

Once again, the nation’s unemployment problem is not only turning many homes into disarray, it is now serving as a ping-pong ball for Republican political juggernauts, including those who hardly could spell the term: Supply-side Economics, to advance their selfish and undisciplined end. The quantitative easing approach from the Federal Reserve Bank which has been followed in the past is hardly making much of a difference; and, to stop the vulnerable market mayhem, the onus is now on Obama’s administration to explore alternative strategies for jobs creation. Maybe that is why the President has indicated that he will be releasing a new approach to combating the unemployment problem come September. However, why wait till September, why not today? The public’s expectation has been so high that things will soon change. However, it seems the more they remain optimistic, the more they get wimped by the performance of the stock market and the ever acrimonious war between Republicans and Democrats in congress; a difficulty that seems to be standing in the way of solution to unemployment.

Some economists have advised government investments in infrastructure, including light rail, electricity grids, green jobs, roads and bridges. Others have suggested fiscal policies like reform to the taxation regime, hoping that this may influence aggregate demand, hence demand for increased manufacturing goods that can stimulate jobs in the economy. The debate over whether to address the unemployment problem with short-run, Keynesian approach, or long-run, Monetarists approach, in policy formation will ever continue; however, we are getting to a threshold where fear is about overcoming common sense. Whether the nation takes the Keynesian approach or route of stimulating demand through transfer payments, tax cuts and unemployment insurance, or the Monetarist supply-side policies, tight fiscal policies, to help improve efficiency of market and hopefully reduce unemployment, there is still need for consensus among our lawmakers as to the best route to take without the long and unyielding acrimony that we have had in the past three years in congress.

Republicans are insisting, like monetarists, the control of money supply will help temper inflation. Incidentally, we do not have any inflation and the feds is about scared of the possibility of deflation with the way prices are tumbling in the real estate and housing markets. Nominal interest rates are rather low; the Feds has kept it at zero, since inflation is very low. By now, we can all agree that unchanged unemployment rate and unchanged real wages will continue to draw down on the economy. What the nation is suffering today is what Keynesians refer to as unemployment disequilibrium. To get out of this slump, we are going to need increased government spending; first to increase employment and second, to increase national income. A higher national income will increase transactions and precautionary demands for money, which can help further encourage private investments in jobs' creation.

We are not having the multiplier effect of private investments as many corporations, out of fear of the unknown, are seating over a trillion dollar cash in their various bank accounts, waiting for the Federal government to take the lead. Without private injection of money into the market and or job creation, the only alternative remaining is the federal government injection of money, for us to have the multiplier’s effect necessary to expand national income. Increased government spending in public works, including infrastructure spending, will go a long way to kick start the economy. Unfortunately, the Republicans have not been forthcoming; congressional Republicans have refused to work with the Democrats and without a cordial working relationship it will be hard to pass another stimulus bill that can help create jobs. Republican lawmakers are anticipating that Democrats will get blamed for the high unemployment and this will facilitate their being kicked out of congress and the Whitehouse. To put it in Republican’s estimation: A bad unemployment rate will ensure that President Obama is a one term President, since the nation can hardly stomach a deplorable unemployment rate as what obtains today. And there lies the politics of the current unemployment situation in America.

It is such an irony that Republicans who led this country into the current economic mess, through their fiscal and monetary deregulation and voyeurism into two foreign wars, to ensure that the military industrial complex continues to fester, are holding the nation to a ransom over finding solution to the problem created initially by them. This is how unfortunate things have gotten in this nation. Imagine, we are in the midst of the worst recession in recent memory, yet multimillion dollar American Corporations are seating over the largest cash reserves ever known to modern banking, rather than invest in job creation?  Imagine if the roles were reversed, will Democrats do the same? There are those who believe that Democrats may not do the same but have been guilty of similar hold ups in the past; and that what is being seen in current congress, is part of the usual business of American Politics.

If the last suspicion is correct, Republican and Democratic lawmakers must help us, as a nation, understand how to better leverage our votes such that our will as a people, does not continue to be compromised or altered, including a heart wrenching unemployment problem across the federation:

1)      What matters most to our lawmakers, the work of the people or a desire to uphold their place in congress? As much as lawmakers may want to hold on to their legislative offices, is the welfare of the people as voters, not of equal importance, if not more than an individual lawmaker’s interest to preserve himself or herself in office? Not every fight over legislative issues is as important as ensuring that citizens have a job to go to, pay taxes and hold on to a roof over their family. Lawmakers must identify what exactly is their priority vis-a-vis, those people who voted them into office. It is imperative that voters understand their interest is being taken into consideration and legislators are not standing in the way of progress when it comes to issues that directly impact their welfare.
2)      What specific economic model, Keynesian or Monetarist, is more appealing to political party leaders? Sometimes, the issue of public policies cannot be defined by ideological affiliation or contemporary hologram, as party politics are often subscribed. The nation’s problems are multifaceted and a diverse knowledge area and background are needed to profess solutions to them. No matter how entrenched a lawmaker maybe in his or her party’s affiliation and ideology, it is probably advisable to identify with the issues that affect the every day lives of the electorate or voters, if the legislator wants to be returned back to office in the upcoming election.

3)      How and why is it that politicians, though from different parties, yet from the same state, are unable to work together in the interest of the public in congress? Sometimes, political lawmakers with probably the worse adverse effect of the problem(s) at hand, look away from finding solution, just in the name of party or ideological affiliation? For example, since lawmakers know that an increase in government spending can substitute for private spending, although not always advisable, to help stimulate activities in the economy, hence increase in equilibrium level of national income, why then are politicians not willing to set aside their differences, in the interest of the people, who are badly hurting?

4)      What is the expected turn over rate of the composition of congress, when a stalemate as what we had over the debt ceiling debate or the long unyielding debate over health care reform takes place? It is important to know, how long legislators anticipate that they can continue to take the voters for granted, by refusing to address important issues that directly affect voters’ welfare. How long do lawmakers think the voters are willing to tolerate unnecessary hold out by lawmakers on issues that is paramount to the people’s welfare?

5)      How much room is there for compromise in the 112^th congress? Lawmakers must let us know the current status of their relationship with other lawmakers in opposing parties, for the voters to appreciate the dynamics in congress or, be able to determine if they will want to return the same legislator back to congress in the subsequent congressional session. Each lawmaker must assess if his or her inability to work with other lawmakers is standing in the way of doing the people’s work. How much compromises are each willing to engage in; or, how much grounds are they willing to yield to other lawmakers who do not necessarily see a problem the same way, they do?

 

Gang of 12: Partnering with Republicans for the greater good of the world’s leading economy?

Keywords or Terms: Democrats; Republicans; Gang of Twelve; Sen Patty Murray (D-WA); Sen. John Kerry (D-MA); Sen. Max Baucus (D-MT); Rep. Dave Camp (R-MI); Rep Fred Upton (R-MI); Rep Jeb Hensarling (R-TX); Sen. Rob Portman (R-OH); Sen. Jon Kyl (R-AZ); Sen. Pat Toomey (R-PA); Rep. James E. Clyburn (D-SC); Rep. Xavier Becerra (D-CA); Rep. Chris Van Hollen (D-MD); Compromise; Balanced Approach; Lawmaking

Democratic lawmakers in congress are too often circumspect of the true intentions of their Republicans Counterparts; and vise-versa. Who can blame them, considering the recent stalemate regarding the lifting of debt ceiling? While Democratic Leaders in Congress were perceived by the public as conciliatory, Republican Leaders were found to be at the mercy; or in imprisonment, of a factional group within their party; a difficult situation that made negotiations and reaching compromises on raising the debt ceiling, rather difficult. It wasn’t only that the Republican leadership felt captive to the Tea Party faction among their rank and file, it was the fact that their ability to reach compromising deals with Democrats were hijacked by the potential 2012 Republican Presidential campaign strategy; a unique difficulty that made citizens of the nation to wonder, if the work of the people was actually being done; and, if politics is not tromping public policy; or, if the demands of an extreme group in American politics have not completely scuttled the democratic process. If the objective of the recalcitrance from the Tea-baggers was to harvest votes, they may be surprised about what the recent polling of the public’s perception of the congressional stalemate and who is to be blamed; or, what the result of the national election may bear out come 2012.

Considering the unfortunate pronouncement of one of the leading Republican Senators from Kentucky, Mitch McConnell, a position that is probably shared by many within the Republican Party; and, one that is better left for a Republican neophyte lawmaker to utter rather than a Republican leader with an appreciable length of time or experience in congress; and who probably understands better what it means to govern, if there is anything like that, one must just wonder what was going on in the mind of the senator when he mentioned the unfathomable. To paraphrase the senior Senator from Kentucky: “I am working hard to ensure that this President is a one term President.” With an attitude like this, no wonder, it was difficult for the forty-two freshman class of Tea Partiers, to get their bearings or understand that enacting a bill in congress, is a game of negotiations and compromises, renegotiation and reconciliations, and not recalcitrance and ingratitude; a process which occasionally may look untidy and wish-washy, but actually works to get a representative workable result.

The differences in both parties’ extreme factions were at the hub of the challenges that the world’s economy is probably facing right now. When extreme groups within either political parties demand extreme positions and are willing to let the whole nation go into financial default, then you begin to question the discipline of many of our lawmakers. Can Congresswoman Bachmann be running for the office of the Presidency if she is championing this type of reckless negligence in leadership? When the needs to garner political votes become the compass for bill’s formation and lawmaking, when the desired position of achieving true results for the people of the country becomes secondary to individual politician’s objectives or those of a minority group within either party, then we are about reaching a threshold of anarchy.


In addition, if the leadership in either political party is unable to convince enough members within their party to vote for a proposal, you start to question the leadership within congress and begin to wonder, if the leadership of either parties has been adopting the right strategy and leadership approach in managing the rank and file among congressional lawmakers. It is probably wise to ask that the process and culture of negotiations that are more result-oriented be adopted by either leadership of the political parties. Further, adopting this result-oriented approach in support of deliberations over a bill in congress is the ethos of good leadership and one that will have beneficial results for either party leadership. Holding firmly to myopic ideological stance as identified with the Tea-baggers within Republican Party, is not only selfish; it is also a probable disaster for a nation holding down to a quarter of the world’s gross domestic product.

Experienced lawmakers often believe they are responsible for keeping the rank and file of their political party in line during the difficult toil of developing and cradling a proposal, a bill, an idea or initiative to law in congress. Seasoned Congressional leaders understand that when they treat the legislative process with temperance or adopt re-conciliatory rules of engagement in managing the parliamentary process, they are able to achieve better results for all, the lawmakers and the country. While counseling the newer lawmakers on how to be in compliance with the ethos of respective parties are in order, it still behooves party leadership to maintain a duty in compromise to help achieve positive results during negotiations over provisions that may end up in a bill. 


Much as the temptation is to remain in complete compliance with the respective party’s ethos and identity, there is still the need for a give-and-take dynamics that are very essential for reaching accords on provisions in a bill that may end up as a law. Since when has it been the order of the day in congress to farm out legislative responsibility to a super congressional group, one nominated probably by a few insiders in either political party? Is this not undemocratic in the first place? Does it not call into question the right of the people to choose their legislators without an abridgement of same rights by those same lawmakers who have failed to appreciate their roles and responsibility in addressing a concern and or, passing a bill, like one meant to trim the excesses in the national budget? To resolve the stalemate and challenges that leaders in both parties have not been able to agree to, party leaders have now chosen their preferential membership to a super congressional group to resolve challenges that the party leadership in congress have not been able to resolve. Is this truly democratic or are we watching the dreams of our fore-fathers being scuttled, because some few, who hardly understand the essence of the democratic process, have decided to hold the whole country, ransom?

To break the strong hold of the Tea Party faction of the Republican Party in Congress, here are two unique perspectives that may add values to the leadership of the Republican Party; and, help free the leadership from the fury and clenching fists of the extreme group:

1)      Republican leadership must understand that this group is more of a fad; or as one politician puts it, political terrorists; and, the real drivers of their demands probably have nothing to do with saving the country from Economic Armageddon, but self-serving. As good as their intentions and clouts may be with those voters that sent them to congress, hardly can it be translated to effective leadership in congressional lawmaking. Incorporated into the process of lawmaking is the need for compromises, reconciliation, strategic alignments that are not pigheaded, and agreements to work for the betterment of the whole congressional legislative process; hence the nation. Republican leadership must therefore incorporate into their caucus discussions, the benefits of compromises and conciliation, the beauty of reconciliation and the benefits of identifying with the pluralities of party leadership, a true and tested group, who knows what parliamentary rules may be massaged or bent without subjecting the lawmaking process to a grinding halt or holding down the parliamentary process to a forced handicap.

2)      Republican leadership, just like the Democrats, need to transform their self-image and believe that they are capable of compromises. This requires the understanding of the challenges being faced by the opposition leadership regarding bringing together party membership in congress to address the difficult points and challenges arising from recommendations on provisions of a proposed bill. To really succeed in congressional lawmaking, to achieve the brilliance of fashioning out workable plans during difficult times for the country, there is a need to appreciate the difficult circumstance that the country is in and to muster the acumen for needed work and dedication to achieve positive results for the nation, even if it puts political party members in temporary difficult positions. This process requires the need to be proactive and having an inventive leadership who are able to bring centrist reasoning, essential for achieving success in the new modern day 24/7 News media environment of congressional lawmaking.

To reach the desired threshold for adapting to the new change in a media blitz lawmaking environment, support for provisions in a bill cannot always be organized around traditional ideological positions of respective parties; neither can the discussions of all items in a proposed or soon to be proposed recommendations in a bill, be based on the confines or preferences of a factional group which is bent on destroying all that is good in the whole democratic process. The ideologues are often at the extremities of either political parties and rarely do they hold or catch the essence of the future of the whole party, as it seems about the Tea Party group in the Republican Party of today. 


While it seems like the Tea Party faction of the Republican Party has usurped some of the party’s leadership, political observers of the party, describe the dynamics of the group within the Republican Party, as probably destructive or unwholesome for the new image of inclusiveness that the Republican leadership has been seeking among minorities. How can Republicans foster inclusiveness, if all they are seeking is to cut social security to the elderly, slash Medicare support for the vulnerable among us and demand or insists forbearance from the middle class and the poor, while safeguarding the interests of the rich? How can Republicans increase participation of minorities in their party when all they care about is safeguarding the interest of the rich at the expense of the poor; and or, relegating real problems of job creation for the millions out of work to a secondary status, to having tax cuts for billionaires?

For example, Republican leadership who allow the rich to get a tax brake for golf clubs and chartered private jet fuel, insist on cutting social welfare programs for women, infant and children.  How inclusive is this arrangement? Republicans continue to regurgitate failed pronouncements of supply-side economics in the job creation need of the nation. They continue to drum-up the fallacy that jobs in the private sector will never be created except more money is given away in taxes to the rich. Republicans may want to realize that all tax payers as a whole are paying for the excesses of the greedy rich, as they are allowed to pay less in taxes because of the ridiculous tax code and the opportunity afforded by many huge corporations to transfer their wealth overseas for job creation opportunities in other nations, majority of which could hardly care about what is going on in American homes.


At the same time that Republicans are inflating the contributions of the corporations to this nation in taxes, they are marginalizing the unions, students, teachers, bus drivers, and the elderly. Just as Republicans are delivering on their avowed commitments to the needs of the rich, they are bumping off children off subsidized state health care programs. To avoid further conflict, Republican leadership must now rain in the extremists in their party, scrutinize their demands and make them understand that this America is for all of us, the rich, the poor, widows, fatherless and the motherless; none of whom deserve to be marginalized on the grounds of narrow ideological ground.

For the newly nominated group of twelve legislators to be effective and successful in their negotiations over budget trimming and cutting deficit, it will be helpful, if no preconceived notion of an unyielding grounds or positions are adhered to by either of the six members a piece per party during negotiations. In order words, there must be the opportunity to consider a balanced approach, one that affords for revenue rising, while trimming the excesses in government spending. One approach is to look at the newly constituted group from congressional lawmakers, as an elite group, with particular goal of providing answers to most if not all questions that the past deliberations have failed to resolved for the nation. Whether the elite group has the opportunity to become the nation’s saviors with respect to our fiscal problems, depends on how each member perceives his or her role in the challenges before us, as a nation; not as a Republican or Democrat!

FRANCA ESILOKUN WILKIE (1959 -1986): A memorial for a Dear Friend

Franca, a dear friend, who left us a quarter of a century ago, used to like this music from Simon and Garfunkel. Enjoy the Lyrics with me as I keep on keeping the promise: