The Shape of the Future

E M Risse


 

Recent Clippings

 

Overshadowed by the horror at Virginia Tech, the MainStream Media contributed some solid reporting in the last fortnight about taxes and the environment. All the stories lacked was an overarching context.


 

One good thing about a few stalwarts from the golden age of print journalism still hanging around is this:

Some MainStream Media outlets like WaPo and NY Times still have journalistic resources sufficient to assign stories before a siren goes off.

This condition stands in stark contrast to the “if it bleeds, it leads” mantra of network, cable and on-line “news.” “Screen view/web page view”-driven media takes an hourly pulse of the stories that “Running Hard as They Cans” are viewing and then allocates resources to feed the public “more of what they want.” Anyone in Blacksburg can attest to the herd mentality of “journalists” in search of a superficial and emotional new angle on tragic, overexposed but poorly understood event.

 

Here are some recent MainStream Media sightings that reflect old-school, pre-planned coverage.

 

Learning from Tax Time

 

The Ides of April have passed and a lot could be gleaned from the “in depth” stories assigned in anticipation of reader interest in taxes around the 15th of April.

 

According to published reports the federal government did not collect about $100 billion in taxes that would have been due had the money not been stored sheltered offshore tax havens. In addition, IRS lost another $345 billion from underreported tax liability – aka, tax fraud.

As Everett Dirksen would have said, a $100 billion here, $345 billion there, and pretty soon you are talking real money.

Half a Trillion is enough to finish the “mission accomplished” job in Iraq or to do what Russia was not able to do in Afghanistan.

 

Some would hope that this money could be used to assure that Katrina I “rebuilding” does not set up a new generation of victims for Katrina II. Real dreamers would like to see half a trillion dollars used to intelligently address the Mobility and Access Crisis and the Affordable and Accessible Housing Crisis by supporting the evolution of fundamentally different (aka, functional) human settlement patterns.

 

Both the tax shelter and the tax fraud numbers are new records and they are a barometer of the times. They are a measure of greed, but they are also a measure of disrespect for government and the rule of law.

These tax evasion totals also indicate that the economies of First World nation-states have outgrown a tax on “income” as a primary source of governance support. This is due to the fact that income is so easy to hide – especially for the top five percent of the economic food chain.

Since Mass OverConsumption is driving an imbalance of trade payments, growing energy import dependency and climate change, it seems logical to shift from a tax on income to a tax on consumption. It would appear especially smart to tax consumption of goods and services that make the world a less good place. One attractive candidate would be a tax on carbon.

 

Federal tax day provided a good reason to examine the impact of the current trend of housing deflation on the economy and on municipal tax revenues. Deflating residential real estate values provides a good reason to consider shifting the municipal tax burden away from the value of real estate improvements. The taxes and fees to support Cluster-, Neighborhood-, Village- and Community-scaled governance should be based on the cost of providing services, not on the value of improvements.

 

A tax on land based upon the cost of providing public services would be a step toward a fair allocation of the cost of location variable goods and services. This would lead to the evolution of functional human settlement patterns which are the only solution to the Mobility and Access Crisis and the Affordable and Accessible Housing Crisis. (See "Beyond the Clear Edge," 26 May 2003.)

 

Who Is Paying What Compared to the Good Old Days?

 

One of the more interesting graphics published on 15 April was in a story by Kevin Hassett titled “Show Me the Money: Why We Pay Without a Whimper” (Outlook, Page 1, WaPo.) 

(Chart credit: Kevin Hassett

as published in the Washington Post)

 

Based on Department of Labor data, adjusted to 2005 dollars, the graphic shows that from 1983 to 2003, the total amount paid in taxes for households earning $50,000 and $150,000 changed in significant ways. For lower earning households the percentage of income devoted to taxes went up as did the amount spent on housing, while the amount “left over” for education, leisure, services, charity and savings went down. For higher income households, taxes remained at about the same level while education, leisure, services and savings went up a lot.

 

Interestingly, money spent on mobility and access went down for the lower earners and up for the higher earners. This may reflect spacial disaggregation of higher income households. Transport numbers are, of course, wildly subsidized and thus household expenditures do not reflect the true cost of mobility and access.

 

The most interesting fact is that the total tax per household did not change much over the 20-year period.  It is clear that the complexity of society and thus the need for governance services increased during this period. Many believe that the inefficiency of governance grew worse. With the gross increase in the cost of health services, much of it paid for by public programs, it would be interesting to see what programs were cut. Maintenance of infrastructure is a good candidate.

 

These numbers document what seems obvious to many: The costs and demands for governance services per capita both went up while the quality of service went down. In this case “holding the line on costs” is not a win-win.

Also of interest is the fact that by this admittedly gross measure, Elephant Clan claims of lowering the taxes on their core supporters – the top of the economic food chain – is not supported.

In his last two columns at Bacons RebellionThe Party’s Over?” and “I Think We should See Other People”, Norman Leahy has examined some of the fault lines in the Elephant Clan.

 

It appears that the three main components of the Elephant Clan’s “conservative” platform are:

  • Don’t tread on me, small government libertarians

  • We have a book that tells you how to act and what to do, religious conservatives

  • The “big government” conservatives

This later group might better be called the “big spender conservatives.” Elephant Clan leaders recognize that politics has been monetized and regardless of the feel- good issues, they need big donors to hire consultants, buy ads and pay for other requirements of a 50.5 percent victory.

 

Big conservative donors are ones with lots of resources to conserve but they are also the ones who benefit from big government projects, contracts and programs thus the expansion of government and public debt during the Reagan and Bush presidencies.

 

Hassett’s graph suggests that Leahy’s three component big tent for the Elephant Clan really does have some weak poles. The weakest pole is that Elephant Clan control does not produce the advertised results for the majority of well-to-do conservative donors. "Big" donors make a lot more than $150,000 a year but there are not enough of them to make much difference in the voting booth.

 

Learning from Earth Day

 

No place is old line MainStream Media’s time-sensitive coverage more in evidence than on Earth Day. Editors and publishers can read the polls. They know that citizens are becoming more and more concerned about “the environment” – the Bay, water quality, air quality, gas prices, power lines and Climate Change.

 

Many citizens would like to feel they are doing something about “the environment.” Somehow they believe that if they do the right thing then baby polar bears will not drown, gas prices will not go up as fast, there will be more crabs from the Bay to eat and Nags Head will not be underwater as soon.

 

WaPo devoted the whole left side of page one of Metro section on 21 April to ten things households and individuals can do to support “Earth Day All Year Long.” It is a fine list. Every idea is a good one but few are easy and all run counter to Business As Usual advertising, which, along with the President, suggests that the patriotic thing is to go shopping. (See “Soft Consumption Paths," 7 Aug 2006).

 

We recall an old New Yorker cartoon with one rotund executive telling another at a cocktail party, "We have been in favor of historic preservation ever since it started to pay.” You may have seen the Wal*Mart ad for energy efficient light bulbs. It is a good thing those corkscrew fluorescents are not cheap. If they were inexpensive, they would never get shelf space.

 

As we noted above, most of the ten are not easy, and no one suggests what “Running as Hard as They Cans” are going to give up to accomplish these tasks. In addition, most who have given the topic any thought could come up with many similar actions to recommend.

 

The core problem is that if “everyone” made a good faith effort to do every item on a composite list of similar actions...  But wait, “everyone” will not even buckle their own seat belt, much less:

  • Turn off the water when brushing their teeth, get a new toilet and stop watering their lawn

  • Swap out most of their lightbulbs

  • Get an energy audit

  • Buy locally grown food

  • Unplug all electronic devices that drain electricity when not in use

  • Trap, store and use storm water

  • Reduce lawn fertilizer

  • Insulate the water heater

  • Change your commute (now there is a really good idea!)

  • Clean up after your pet.

The ideas are well presented with relevant facts and sources for more information. Many of these commonsense suggestions are not easy to do, however, and even if “everyone” did them, it would not make much difference without systemic, fundamental, society-wide changes.

 

From 60 to 70 percent of the US of A's petroleum is consumed by transport. “Changing” the commute is not the answer. Changing settlement patterns so most people are where they want or need to be most of the time is the answer.

 

From 60 to 70 percent of the total energy consumption is for building, heating, cooling, lighting and providing mobility and access for the current human settlement patterns. The only way to achieve significant reductions in energy consumption is the evolution of functional human settlement patterns.

 

This is not a new realization.  In the early 80s the developers of Burke Centre cooperated in a federally funded study of the Landings Neighborhood in Burke Centre. The consultant produced a long list of suggestions. Not one of them would any of the builders follow because the builders, correctly, believed to do so would put them at a disadvantage in market because the suggestions were not what buyers wanted. (See “Whale on the Beach,” 28 Aug 2006.)

MainStream Media has a moral, ethical and journalistic responsibility to provide "news." By "news" we mean the information citizens need to create and maintain a democracy with a market-based economy.

At the same time, the MainStream Media have a legal obligation to stockholders to maximize profit. In the current context, where 70 percent of the economy is consumer spending, that means MainStream Media supports and is a major contributor to Mass OverConsumption. MainStream Media support Mass OverConsumption by not questioning the validity or impact of advertising and by avoiding effective challenges to the safety and happiness Myths that drive Mass OverConsumption.

 

MainStream Media coverage of governance and human settlement pattern-impacting issues meet the legal challenge but do not meet the moral and ethical challenges. The coverage of mobility and access, affordable and accessible housing, land conservation and other aspects of reality do not provide the information necessary for citizens to make intelligent choices in the voting booth or in the marketplace.

 

Stay tuned for alternative choices.

 

-- April 30, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ed Risse and his wife Linda live inside the "Clear Edge" of the "urban enclave" known as Warrenton, a municipality in the Countryside near the edge of the Washington-Baltimore "New Urban Region."

 

Mr. Risse, the principal of

SYNERGY/Planning, Inc., can be contacted at spirisse@aol.com.

 

Read his profile here.