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Archive for May 31st, 2010

Another local government in California is contemplating bankruptcy. That’s hardly big news, though, since many California jurisdictions have been bled dry by greedy public sector unions and the city of Vallejo already has thrown in the towel. What is amazing, though, is that the government unions are trying to get the state to pass a bill barring bankruptcy. This is eerily akin to the part of Atlas Shrugged where government officials torture John Galt in hopes of trying to force him to produce. The political thugs in Atlas Shrugged were desperate because people no longer were producing anything they could steal. The pathetic politicians and government workers – both in Ayn Rand’s book and in California – obviously don’t understand that parasites should not be so greedy that they kill the host animal. Here’s a Reuters excerpt:

Antioch’s leaders earlier this month said bankruptcy could be an option for the cash-strapped city of roughly 100,000 on the eastern fringe of the San Francisco Bay area. …But cost-cutting measures may not be enough to keep Antioch’s books balanced, so its city council is openly discussing bankruptcy. …Orange County Treasurer Chriss Street would not be surprised if more local governments across the Golden State sound a similar alarm. …Despite its stigma, bankruptcy has paid an important dividend for Vallejo: It has forced public employee unions to the negotiating table, providing city leaders an opportunity to rein in compensation, which city officials said accounts for more than three-quarters of Vallejo’s general fund spending. City Councilwoman Stephanie Gomes said the effort has led to concessions from three of four city unions. Like Vallejo, Los Angeles is suffering from weak revenue at the same time the cost of its pensions and other retirement benefits are rising. Former Mayor Richard Riordan said those factors put the government of the second largest U.S. city on track to declare bankruptcy between now and 2014. …Talk of municipal bankruptcy has not escaped California’s politically powerful public employee unions. A number of them are pressing the legislature to pass a bill that would require local governments to get the approval of a state board before filing for bankruptcy. Since the board could be stacked with union-friendly appointees, bankruptcy pleas could be rejected or delayed. “It’s a horrible bill,” Levinson said. “If you don’t have the bankruptcy outlet, what do you do? If you can’t pay your bills what do you do?”

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There’s a controversy in Texas because the State Board of Education has mandated the inclusion of certain materials in textbooks. This has elicited howls of protests from the left, which generally has controlled how some issues are portrayed. Since I don’t want leftist propaganda being pushed on kids, I’m mildly sympathetic to the Texas educrats, but the best way to solve the controversy is school choice. As Jeff Jacoby explains for the Boston Globe, education in America should be more like religion. This means getting rid of one-size-fits-all monopoly schools operated by the government:

“Throughout American history,’’ writes Neal McCluskey of the Cato Institute, “public schooling has produced political disputes, animosity, and sometimes even bloodshed between diverse people.’’ Political fighting is neither rare nor anomalous: In the course of just one school year, 2005-06, McCluskey tallied almost 150 reported cases of public-school conflicts. There were bitter battles that year over Darwinism-vs.-intelligent-design in Pennsylvania and Kansas, heated fights over books about Cuba in Florida, and an emotional dispute in California over the portrayal of Hindus in history texts. In Lexington, Mass., a teacher’s decision to read a story celebrating gay marriage to her second-grade class without first notifying parents triggered a fight that ultimately wound up in federal court. Again and again, Americans find themselves at war with each other over public schooling. Yet furious conflict over religion in this country is almost unheard-of. Why? Why don’t American Catholics and Protestants angrily attack each other’s views of clerical celibacy or papal infallibility? Why is there no bitter struggle between Orthodox and Reform Jews to control the content of the Sabbath liturgy? Why don’t American atheists clash with American believers over whether children should be taught to pray before going to sleep? …The answer is no mystery. America is a land of religious freedom, in which people decide for themselves what to believe and how to worship. No religion is funded by government. Elected officials have no say in the doctrine of any faith or the content of any religious service. Religion flourishes in America because church and state are separate. And it flourishes so peacefully because no one is forced to support anyone else’s faith, or to attend a church he isn’t happy with, or to bring up children according to the religious views of whichever faction has the most votes. Religion is peaceful because it is government-free. Liberate the schools, and they too would be at peace. Taxpayer-funded, one-curriculum-fits-all schooling makes conflict inevitable. There would be far less animosity if parents were as free to choose how and where their children learn as they are to choose how and where they worship. Separation of church and state has made America an exemplar of religious pluralism and tolerance. Imagine what separation of school and state could do for education.

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The government’s so-called War on Poverty has been a dismal failure, largely because giving people money as a condition of being poor is a very good way of ensuring that some of them will choose to remain poor. But now the White House wants to make a bad situation even worse by concocting a new definition of poverty completely divorced from reality. As Robert Samuelson explains in his Washington Post column, this rigged system means that the poverty rate would remain the same even if every person in America suddenly had twice as much income:

…the poor’s material well-being has improved. The official poverty measure obscures this by counting only pre-tax cash income and ignoring other sources of support. These include the earned-income tax credit (a rebate to low-income workers), food stamps, health insurance (Medicaid), and housing and energy subsidies. Spending by poor households from all sources may be double their reported income, reports a study by Nicholas Eberstadt of the American Enterprise Institute. Although many poor live hand-to-mouth, they’ve participated in rising living standards. In 2005, 91 percent had microwaves, 79 percent air conditioning and 48 percent cellphones. …the administration’s…new poverty number would compound public confusion. It also raises questions about whether the statistic is tailored to favor a political agenda. The “supplemental measure” ties the poverty threshold to what the poorest third of Americans spend on food, housing, clothes and utilities. The actual threshold — not yet calculated — will almost certainly be higher than today’s poverty line. Moreover, the new definition has strange consequences. Suppose that all Americans doubled their incomes tomorrow, and suppose that their spending on food, clothing, housing and utilities also doubled. That would seem to signify less poverty — but not by the new poverty measure. It wouldn’t decline, because the poverty threshold would go up as spending went up. Many Americans would find this weird: People get richer but “poverty” stays stuck. …The new indicator is a “propaganda device” to promote income redistribution by showing that poverty is stubborn or increasing, says the Heritage Foundation’s Robert Rector. He has a point. The Census Bureau has estimated statistics similar to the administration’s proposal. In 2008, the traditional poverty rate was 13.2 percent; estimates of the new statistic range up to 17 percent. The new poverty statistic exceeds the old, and the gap grows larger over time. To paraphrase the late Sen. Daniel Patrick Moynihan: The administration is defining poverty up. It’s legitimate to debate how much we should aid the poor or try to reduce economic inequality. But the debate should not be skewed by misleading statistics that not one American in 100,000 could possibly understand. Government statistics should strive for political neutrality. This one fails.

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