The Generosity Gap

A new study claims that religious people and Republican-leaning states give more money to charity than the non-religious. Like most such studies there are some picky details that undermine the entire gist of the report.

The study found:

The most generous state was Utah, where residents gave 10.6 percent of their discretionary income to charity. Next were Mississippi, Alabama, Tennessee and South Carolina. The least generous was New Hampshire, at 2.5 percent, followed by Maine, Vermont, Massachusetts and Rhode Island.

Hmm... 10.6%. Why does 10% sound so familiar?

In Mormon teachings, for instance, Latter Day Saints are required to pay a 10% tithe to remain church members in good standing, which helps explain the high giving rate in heavily-Mormon Utah.

In other words, the people who contribute the most to "charity" are actually giving their money to their church, which threatens them with eternal damnation if they don't fork over the cash. This is like the bad old days when the Catholic Church offered "indulgences" to the wealthy, in which their "pardoner" would hold their soul hostage for the sins they had confessed, exchanging cash to avoid harsh penance.

Giving money to a church isn't charity. It's primarily an insurance plan for your immortal soul. It's also a fee-for-service arrangement that pays for the minister to act as an adviser and weekly stand-up comic. It's mostly used to pay for mortgages, building maintenance, operating expenses, and salaries, and sometimes subsidizes day care and education for church members. In large church organizations the local franchises send money off to headquarters to maintain the central hierarchy in the style to which it is accustomed and round up more customers ("missions"). Appeals for money for actual charitable works, such as the "poor box" and assistance for natural disasters, are made separately from the normally expected donations.

In other words, churches are and always have been big businesses. The ascendance of brazen money-grubbing televangelists is simply the logical extension of the model.

The article doesn't have enough detail to know for sure, but the numbers in Utah suggest that charitable giving is pretty much the same across the country, if you discount contributions to churches, or at least the portion that used for hierarchical overhead and services provided directly back to customers.

So it doesn't seem that the unchurched and Democrats are any less generous. In addition:

Alan Wolfe, a political science professor at Boston College, said it's wrong to link a state's religious makeup with its generosity. People in less religious states are giving in a different way by being more willing to pay higher taxes so the government can equitably distribute superior benefits, Wolfe said. And the distribution is based purely on need, rather than religious affiliation or other variables, said Wolfe, also head of the college's Boisi Center for Religion and Public Life.

People who live states with higher taxes fund the support infrastructure for better education, better roads and public welfare. That helps all people regardless of race, color or creed. Doesn't that seem more generous?

Wrong on Wind, Right on Ethanol

In a recent opinion piece George Will blurted out the following as if it were the most elementary truth you learn in grade school:

This may seem a minor matter, as well as an obvious and easy decision for a conservative. The wind tax credit is, after all, industrial policy, the government picking winners and losers in defiance of market signals — industrial policy always is a refusal to heed the market’s rejection of that which the government singles out for favoritism.

This is a completely fatuous proclamation, ignorant of history. The federal government has always picked winners and losers when setting industrial policy.

When the government wanted to expand westward it picked winners and losers by granting railroads rights of way that ran roughshod over anyone who happened to be in their way.

When the federal government built the freeway system it picked winners and losers by building a transportation system for the trucking industry, completely undermining the rail system that it has subsidized only decades before and giving automobile and oil companies huge market opportunities.

Oil companies reap huge subsidies from the government, thousands of times greater than the subsidies that wind power receives.

But what about Will's infamous "market signals?" The market has been sending signals about the price of oil for decades. In the Seventies the Arab oil embargo sent a huge shock through the American economy, and allowed the Japanese to gain entry into the American automobile market and almost crush Detroit. Saddam's invasion of Kuwait sent a signal strong enough for us to start a war. Every time Iran says boo about the Straits of Hormuz the price of oil spikes.

Every year or two there's another massive oil spill, sending another market signal. This summer's drought and the high price of corn sends another market signal: the warming climate, caused by excess CO2 from burning fossil fuel, will increase the cost of food and reduce yields.

Will is right about one thing: not all subsidies are equal. But instead of worshiping at the altar of the market, he should pay some attention to the sciences of geology, agronomy and physics. He lumps together the wind tax credit and subsidies for the production of ethanol, which is usually made from corn. He's dead wrong on wind, but right on ethanol.

Geology: there's only a finite amount of oil, and it's going to run out in our lifetimes, especially as Asia and Africa begin to demand the lifestyle Americans enjoy. Its price fluctuates wildly and constantly, and because it mostly comes from countries antagonistic to the United States (the Middle East, Venezuela, Russia), it's critical to ensure that we have other sources of energy.

Agronomy: corn-based ethanol is just about the worst form of fuel possible. It's made from a foodstuff, so every bushel of corn turned into ethanol is a bushel of corn that people and livestock can't eat. Corn requires massive amounts of water and often requires more energy (usually from oil) for cultivation, fertilizer, transport, and so on, than it produces as ethanol.

Physics: once the infrastructure in place wind power is essentially free. The wind will still be blowing strong across North Dakota long after the oil boom there busts and the derricks fall silent.

The government has to be responsible for setting industrial policy for the long term, because multinational corporations have no concern about the future of the United States. They only care about profits in the next quarter and whether the stock price gains will garner the CEO his bonus. Wind power subsidies are ridiculously cheap compared to the amount of money the government spends subsidizing the oil and automobile industries with the highway system alone.

The only reason to oppose wind power subsidies is to hammer political opponents who support them. Wind power isn't some distant pipe dream. The United States has about 48,000 megawatts of installed capacity. That powers tens of millions of homes.

Wind: it's the conservative choice.

See, This Is What Happens...

The first term Senator from Missouri, Claire McCaskill, was pretty much toast this fall. Even with the nomination of the extremely conservative Todd Akin, she was likely going to lose the election.

Funny things always happen, though, when you have a far right wing candidate...things like them opening their mouths and talking. 

First of all, from what I understand from doctors [pregnancy from rape] is really rare…If it’s a legitimate rape, the female body has ways to try to shut that whole thing down.

Wow.

Do we really want to trust someone this ignorant with the task of running our country?

He Built It And He Had Help

James C. Roumell, one of those wealthy job creators, has a brilliant piece in The Washington Post which pretty much puts the last nail in the coffin on all the mouth foaming about President Obama's recent comment on having help to build a business. He also breaks a few myths about Detroit but I'll leave the denizens of Bill Whittle to continue to live in their fictional world on that subject.

First, let's find out a little about Mr. Roumell.

Today, I own a small business, an asset management firm with $300 million in assets. Last year we launched the Roumell Opportunistic Value Fund (RAMSX) and hired three more people. We’re growing and creating jobs.

Sounds like someone Mitt Romney would like to cozy up to as an example of what's great about America. But wait!

I suppose I could pound my chest and take credit for my journey from Detroit to Chevy Chase, from working class to professional. I could say I built it myself. But this wouldn’t be true.

Aw, snap. Well, fuck this guy. He's a collectivist!

It gets worse.

I went to college with the help of Pell Grants and government loans. Twenty years ago I met Claiborne Pell and was able to thank the former Democratic senator from Rhode Island for introducing the Higher Education Act of 1965, which allowed me to go to college. 

My business has been made possible by the Investment Company Act of 1940 and the Investment Advisers Act of 1940. These laws created practices and transparency that enabled a financial services industry to emerge. After the stock market collapse of 1929, the public rightly did not trust Wall Street and needed assurances that the industry would operate within a reliable set of rules.

A collectivist and a statist. Is he even an American?

Since Mr. Roumell is an investor, doesn't that mean he is a victim of Barack Obama's policies that have created uncertainty in the marketplace?

Nope.

Nothing in terms of “regulations” or “business uncertainty” has stopped me from investing capital for a return. In fact, the stability that government involvement brought to the capital markets over the past three years, evidenced by a 100 percent increase in the Standard and Poor’s 500-stock index since March 2009, probably enabled my business to survive. The federal government’s back-stopping of money market funds in the fall of 2008 ended, effectively in one day, what was turning into a 1930s-style bank run.

I thought the government was supposed to just let the free market do its thing. Otherwise, it always makes things worse, right? Oh, and on Friday, the S&P closed at 1418.16, near a four year high. 

Mr. Roumell closes with two simple facts.

The countries that spend the least on government as a percentage of their economy (gross domestic product) are countries with little business success. Haiti, Bangladesh and Afghanistan spend 16, 13 and 9 percent of their GDP, respectively. Our federal government has spent around 20 percent of GDP since World War II. Europe typically spends slightly over 50 percent, so we’re a long way off even after factoring in an additional 15 percent for state and local government spending.

Yep.

And to those people who still can't understand President Obama's comment?

I did work harder, and perhaps more imaginatively, than many colleagues. But does that mean I built it myself? Does it diminish my success to be grateful for the public investments that so clearly contributed to my success? Every successful person knows, and will admit if he is honest, that luck played a role in his good fortune.

Why is it so difficult for the right to admit this?

Managing Fantasies Indeed

Last in line asked me yesterday if I wanted to go see Dinesh D'Souza's new film about the president. I told him that I would pass (even if he paid for it) and here's the reason why: I'm not going to be a party to the continued population of a fictional world.

The record of the last decade or so suggests that the party these days is animated by two main goals. First, it seeks unchallengeable, absolute power. Its modus operandi for achieving that goal has been to use institutional power—the power of corporations, courts and legislatures—to acquire more institutional power. A recent case is the drive in Republican-dominated states around the country to disenfranchise Democratic-leaning constituencies, such as the poor and minorities, by legislating onerous requirements for voting.

The other goal has been a less familiar one. More and more, Republicans have exhibited a strong desire to take up residence in an imaginary world, an alternate reality—one in which global warming is found to be a fraud perpetrated by the world’s top scientists, Obama turns out to have been born in Kenya and is a Muslim (and a socialist), budgets can be slashed without social pain, firing government employees reduces unemployment, tax cuts for the wealthy replenish government coffers, and so forth. Perhaps it seems odd to identify such an objective as a political goal, but past ideological movements of the left as well as the right offer many examples of the power of such a longing.

There is nothing more dangerous than a very large group of people who refuse to admit error and continue anyway with their meglomaniacal fantasies.

Worse, they seem to slip effortlessly into what I've been calling recently, "Heading Off At The Pass" syndrome. A severely debilitating avoidance reaction, this can take many forms (rest assured, I will be talking about them quite a bit between now and the election). An excellent example of this is Kevin Baker's continued use of the phrase "Do it again, only harder." His complaint is that liberal and progressive ideas have failed and that's why we have all these problems. Liberals want to do more to try to make up for their "failures."

In reality, (not the fictional world in which Kevin, his ilk, and what is now the GOP reside) however, those policies have worked.  Since Social Security first started we've seen our country grow into a massive power in the world. We had massive debt, deficits, high taxes, big government and socialized medicine while we essentially became the financial and cultural hegemenon of the world. We defeated the Nazis, the Communists, and are about to defeat Islamic extremism all with our free market ideals, capitalism, and democracy.

There's no need do any of it again or harder. We've already won.

And by "we," I mean all of us. Of course, people on the right wont't accept this because they can't stand losing an ideological argument (in typical adolescent form). They will have you believe our world is going to end any minute. In a certain sense, THEIR world has ended, in their eyes, because they have been proven wrong.  Their enemy is the truth so they have to invent fiction. Since there is never a shortage of fearful and ignorant people, they have power and here's where the danger comes in.

As the very famous and accurate phrase goes, we hate in others what we fear in ourselves. Yet, it was THEIR policies of deregulation and free market fundamentalism that brought us to the tough economic spot we are in right now. THEY are the ones that want to "Do it again, only harder" because they simply can't stand being wrong or admitting fault.

This is the Romney-Ryan ticket in a nutshell. It's a fantasy world filled with promises of giving failed policies another shot because somehow it was the fault of liberals that they didn't work the first time. I've said this many times and I guess I have to say it again.

The party who champions individual responsibility claims none of it.

Something Doesn't Add Up

The other day when Mitt Romney was whining about how Barack Obama keeps picking on him, he said:

I just have to say, given the challenges that America faces — 23 million people out of work, Iran about to become nuclear, one out of six Americans in poverty — the fascination with taxes I paid I find to be very small-minded.

Small-minded?

• Small-minded is Mitt Romney's insistence on keeping his tax returns secret, in comparison to his father's release of 12 years of tax returns. Most other presidential candidates in the last 40 years have released five to 30 years.
• Small-minded is Mitt Romney's insistence on tax cuts for the wealthy and corporations, even as we were fighting two wars, and recovering from a recession that has hit the poor and middle class especially hard, while corporations have been wallowing in cash.
• Small-minded is the Republican fascination with the personal lives of gay people, and their insistence on dictating who they can marry.
• Small-minded is the majority of Republicans who insist that Obama's Hawaii birth certificate is false, that Obama is a Muslim, that Obama is a anti-colonialist born in Kenya. Apparently, 64% of Republicans are latched on to this fantasy (and still think Saddam had WMDs).

But back to Romney's tax returns: something just doesn't add up. In 2010 and 2011 Romney made $42.5 million, or $21 million a year. Estimates of Romney's wealth are between $190 and $250 million. Now, he's been "retired" since 1999, which means that he's quite probable that he's been making in the ballpark of $20 million a year for the last 12 years.

If you multiply $20 million times 12 years, you get $240 million, or Romney's current worth. What happened to the money that Romney made during the 20 or so years he worked at Bain and other jobs?

Unless Romney's got an incredibly profligate lifestyle, or made a lot of really terrible investments, there seems to be a lot of missing money. It looks like Romney's got a ton of money socked away in places we don't know about.

This is why we need to see Romney's tax returns for the last 10 years, if not 20 years. Something just does not smell right here.

Mitt Comes Clean

So Governor Romney has come clean and said that he looked through his taxes and paid around 13 percent every year for the last 10 years. Harry Reid's response? Prove it.

I'm trying to figure out why he would make any sort of comment at all if he's not going to release his other returns which he says he won't. He did say he would release 2011 but the deadline for that is Oct 15, 2012 (I guess he got an extension). That also makes no sense as it is right before the election. And, what if the returns do come out and Harry Reid is right or partially right? Then Mitt would be caught in a lie.

With the white board weirdness yesterday, their campaign plan seems haphazard bordering on the bizarre. Why aren't they out there talking more about Paul Ryan, who clearly has energized the crowds and the base?

Oh, Really?

Here is a link with all the letters in PDF format.

What...In...The...

A Billboard In Minneapolis

By A Landslide

On pretty much every political and social site out there, it won't take you long to see a reference to Barack Obama as the Goldman Sachs president. In 2008, he received around 10 million dollars in contributions compared to McCain who got around 7 million dollars so there was cause to call him this back then.

But after Dodd-Frank and his continued call for actually enforcing regulations on the financial sector, the party's over for the president. As of last June, Mitt Romney has raked in 37 million dollars from the financial sector compared to Obama's paltry 5 million dollars. 

So, if you are one of those folks falling all over themselves to look for a "Wall Street" candidate, it's Mitt Romney by a landslide. And please join us in the year 2012 and stop being childishly dishonest.

From Russia, Without Love

Ayn Rand is back in the news now that Rand acolyte Paul Ryan has been chosen as Mitt Romney's running mate. I found this link to an Ayn Rand interview on the Tonight Show from 1967. Hearing her speak is entertaining because she sounds exactly the way you would expect a Soviet spy to sound.

The usual slam on Ayn Rand is that her Objectivist philosophy is a selfish adolescent power fantasy. And there's good reason for that. The Russian Revolution took place when Alisa Zinovyevna Rosenbaum (Rand's birth name) was 12 years old. It completely shattered her world and scarred her for life. Objectivism was literally born in the mind of an teen-aged girl whose father's pharmacy was confiscated when the Bolsheviks came to power.

Her family were non-practicing Jews. She decided in high school that she was an atheist, no doubt under the influence of the Soviet school system. Rand went to Petrograd State University and was purged with other bourgeois students, but managed to get a degree due to the intervention of visiting foreign scientists. She went to the United States in 1925 and eventually became a Hollywood screenwriter.

Rand believed that reason is the primary human attribute. She rejected absolutely any form of religion, and believed the very concept of altruism was incompatible with human life and happiness.

Ironically, this flies in the face of reason. Altruism is essential for human and animal communities to survive and grow, and even for the evolution of life itself. Since Rand's death there's been a great deal of research into altruistic behavior in other species, which exists even in bacterial colonies. There may even be an altruism gene. Without altruism, the only nations that could field an army and wage wars would be pirate states that conquered other countries for profit, and doled out the spoils of war to soldiers. Otherwise, why risk your life to defend your country? Let the addle-brained fools who believe in God and an afterlife get themselves killed on the field of battle. Better to stay home and get rich selling weapons to the government.

And, of course, altruism is the very basis of Christianity ("Christ died for our sins"). 

At its core Rand's philosophy is a childish refutation of Soviet Russia's revolution. Objectivism is Bizarro communism: the exact opposite of communism in every respect except its embrace of pseudo-rationality and rejection of religion. Rand's philosophy epitomizes what communists portray capitalists as: supremely selfish, narcissistic, profit-seeking automata.

The problem with Objectivism is that it is inherently weak and cannot work for large groups. It glorifies selfishness instead of loyalty and steadfastness. If there is no altruism, there is no love, no trust. All alliances are fleeting conveniences, to be abandoned instantly when reason indicates selfish gain is to be had. Life for objectivists is one long Machiavellian pissing contest.

Objectivism is so preposterous that it must be the product of a Hollywood screenwriter. Which, in fact, it is.

The cynic in me says that Ayn Rand is just the L. Ron Hubbard of capitalism. But it makes me wonder: was Ayn Rand really a Soviet mole sent to Hollywood to sabotage the West with a form of capitalism that was so toxic and self-destructive that it would collapse under the sheer weight of its selfishness?

Может быть, товарищ. Может быть...

Taking One for the Team

Early next year fiscal Armageddon is scheduled to take place when the budget is sequestered -- which means automatic spending cuts to everything. Conservatives have been screaming bloody murder about how this will gut the Defense Department, claiming that the budget will be "slashed by more than $600 billion."

Turns out this claim is false.

The oft-repeated higher figure of $600 billion is actually the total in projected deficit reduction that the government would get by cutting $492 billion from the military. The extra $108 billion in projected savings would come via interest payments the government wouldn't have to make. Since the government would be spending less, it could borrow less and thus save on interest. [...]

Both a Congressional Budget Office report and the head of the Office of Management and Budget concur that the proper figure for the cuts is $492 billion, or about $55 billion annually over nine years.

Now the Defense Department's budget is $550 billion, so a $55 billion annual cut could easily be achieved by cutting a few junkets by DoD honchos, shutting down a few useless bases and eliminating a few worthless weapons systems that are sops to powerful congressmen funneling earmarks to their districts. In addition, the war in Afghanistan is drawing down, so defense spending just doesn't need to maintain its current levels.

Depending on how you want to count, the United States spends as much as the next 10 or 12 countries on defense. Yes, we are in a special situation, and we do have a larger responsibility to ourselves and the rest of the world for defense. But defense is just another government program, and is quite prone to overcharging and outright deception by private contractors to whom most of the defense budget flows. As someone who's worked in the industry I've seen firsthand how it works.

This whole problem could be solved if all those patriotic defense contractors pitched in and cut their prices by 10%. It would best for them in the long run to avoid having to make hard choices about which programs to cut, wouldn't it?

As Republican keep telling us, it's about time the people sucking on the government teat took one for the team.

Stop Them From Selling Their Potion