• THE REAGAN SHOW

    ………….

    Note:

    AZA held his annual holiday party at his SoHo loft Friday evening. Most of the team was there, MSM had to regret due to his leadership on the Marcellus Shale Hydrofracking. The host asked guests to bring suggestions for refining Observerโ€™s 7 Dec humorous comment posted on โ€œLies About Federal Workersโ€ concerning โ€œThe Truman Show.โ€ After much discussion, the team voted 7 to 6 (some wanted to toss rocks and whack moles) to request that EMR post the revised version. Observer participated and hearty endorses the refinements.

    ………….

    As intelligent as many of Dr. Baconโ€™s insights are, he may have who is shielding what from whom bass-ackwards:

    Bacon claims that โ€˜The Political Classโ€™ in the National Capital SubRegion is โ€˜insulatedโ€™ from the issues facing citizens and Organizations in the rest of the nation-state.

    That seems to be incorrect:

    โ€œThe rest of the nationโ€ has been intentionally insulated from reality, not the other way around.

    Many believe that what Bacon calls โ€œThe Political Classโ€ is really โ€œThe Business-As-Usual Classโ€ (aka ,The BAU Class).

    The BAU Class is a vast Agency / Enterprise / Institution Complex (aka, conspiracy) that includes:

    1. Governance practitioners in the Agencies at the federal, state and municipal scales โ€“ especially pandering politicians and those who work for them

    2. Entrepreneurs in Enterprises that depend on Mass OverConsumption to raise THEIR boats, THEIR stock, THEIR McMansions…

    3. Leaders of Institutions (political parties, PACs, think tanks, etc.) that depend on the flow of money from Agencies, Enterprises and from those citizens and Households at the top of food chain. Many Institution-supporting entities feed money to Institutions to preserve the status quo because they see no reason to derail their gravy train.

    So the real story is that the BAU Class has INSULATED the citizens and Organizations across the nation โ€“ and across the Planet โ€“ from reality. The reality of finite limits and the pitfalls of jingoism, partisan bickering, xenophobia, the Wealth Gap and YES, deficits are unrecognized. In fact ignorance is glorified in the name of patriotism and freedom.

    Citizens collectively have no idea how to address the objectives and strategies they should be concerned with โ€“ especially the overarching goal:

    Achieving an economic, social and physical trajectory that is sustainable.

    Instead there is The Anger of Ignorance protests, Whack a Mole politics with all sides Tossing Rocks at Empty Pigeonholes (TRAPE).

    The BAU Class is standing in the way of the information that citizens need to make intelligent decisions in the voting booth and in the marketplace. PROPERTY DYNAMICS is one path to follow but even information on this core interest of the vast majority of Households is being distorted and swept under the rug. Thus the need for Citizen Media.

    Without their consent, most citizens are now cast members in a continent-wide, real-time, tragedy โ€œThe Reagan Show.โ€ What exists for most is an updated โ€œThe Truman Storyโ€ that has portrays the life of Reagan Everyman in place of Truman Burbank.

    It was the great communicator himself that convinced citizens that they could have it all because it was Morning in America. Everyone could thrive in Seaside or Celebration โ€“ technicolor versions of โ€œPleasantville.โ€ They could all live where they wanted, drive what they wanted, spend what they wanted. The ever-growing economy, driven by the gracious and altruistic spending of the rich. would raise all boats.

    It was Reagan who tossed a wet blanket on the flickering candle of intelligence that was ignited by understanding of what the 1973 OPEC Oil Embargo REALLY meant.

    For AZA

    (Note: a number of other ideas surfaced at AZAโ€™s fete โ€“ The existence of The Spacial Bipolar Disorder, and others โ€“ that will be included in the survey of Citizen Media, forthcoming.)


  • Bob’s Right: Build Those Roads

    Fellow blog readers and Baconauts. Please help me with this.

    I was just getting over Barack Obama’s surrender to the conservatives on tax cuts when I opened this morning’s newspaper and learned that Republican Gov. Bob McDonnell is really a Keynesian and is willing to blow out the state’s troubled debt obligations to get roads for which two of his previous fund-raising schemes have failed.

    And to think that just two Sunday’s ago, the Right Rev. James A. Bacon was delivering another one of his stern sermons that Virginia will pay an estimated $594 million in 2012 to service its $9 billion tax-supported debt. According to our deficit watchdog, Virginians are paying more to service debt than ever before and the state “cannot afford this nonsense any more.”

    Here’s the new nonsense: McDonnell will ask the state to spend $400 million immediately on roads and bridges while borrowing another $2.9 billion over the next three years for more transportation needs. Of this, some $150 million will come from last year’s budget surplus and $250 million that an audit revealed the Virginia Department of Transportation has already had.

    McDonnell’s justification and that of his transportation chief Sean Connaughton is that construction costs and bond financing is cheaper than it has been in decades and there are bargains to be had.

    Actually, I tend to side with them on this. Virginia’s roads needs are significant if the state is to continue to position itself for growth not just tomorrow but over the coming years and decades.

    Building roads now will mean more jobs now, not some years down the pike. You can’t completely toss John Maynard Keynes out with the baby’s bathwater, anyway. He does make sense.

    The proposals would create a state infrastructure bank with $400 in surplus and other funds. That’s not a bad idea since many countries around the world have created similar institutions to fund transportation needs. Changes in state bond laws would also be needed.

    While I like the idea of stopping moaning about deficits and debts and getting on with projects that create jobs and could enhance the state’s chances for prosperity down the road, there is some concern about McDonnell’s topsey- turvey policy-making. I am not all that concerned about the “New Fru” tut-tutters like the Right Rev. Bacon. If you listen to them, nothing would ever get done besides a bunch of hand wringing.

    But McDonnell’s two previous plans to boost transportation funding — privatizing ABC stores and offshore oil drilling — are kaput. What’s happened is that Connaughton, one of the few serious pros in McDonnell’s administration, has convinced Bob to get off the dime. These inconsistencies are worrying and still show that McDonnell’s is a second-stringer when it comes to governing.

    In any event, I see the news as welcome.

    Peter Galuszka


  • Obama’s Smart Move in Banning Drilling

    The moaning was loud when President Barack Obama last week banned oil drilling offshore of the East Coast until 2017.

    Politicians from Democratic Sen. Mark Warner to Republicans such as Congressman Eric Cantor and Gov. Bob McDonnell decried the move.

    “It demonstrates a complete lack of confidence in (industry’s) ability to fix the problems experienced in the gulf spill, and no confidence in the ability of the U.S. government to better plan for and react to offshore emergencies,” McDonnell cited angrily in a statement. The governor has seen his grand plans to push with offshore drilling to help fund Virginia’s massive transportation problems squashed more than once.

    Obama’s decision, of course, comes after the Deepwater Horizon disaster this past spring and summer which was the worst environmental predicament ever faced in the U.S. Some Virginians had hoped for a 2012 lease sale to exploit oil reserves that may or may not be out there.

    Now comes the Wall Street Journal, not exactly an environmentalist rag, with a front page story that there has been a rash of close calls with offshore oil rigs over the past two years after decades of improving safety records. The Journal reviewed the records of the countries with the most experience with offshore drilling. The United Kingdom saw a 39 percent increase in serious incidents involving North Sea rigs. Australia likewise saw a spike including a near blowout such as the Deepwater Horizon situation. Norway say a 48 percent spike in incidents since 2008.

    How come? The Journal says that there’s a mad rush to deep, offshore drilling because oil from shallow water areas is running out. Yet there aren’t enough experienced workers to handle the extra difficulties of drilling a mile or so down. The demand for profits and spotty enforcement also complicate deep water drilling.

    Experts say that that disasters such as Deepwater Horizon are “low probability” but “high consequence.” “This accident was bound to happen,” says Nancy Leveson, an expert at the Massachusetts Institute of Technology who has studied the BP Deepwater mess.

    The problem with people such as McDonnell and Cantor, and to some extent Warner, is that never seem to go beyond consulting with oil lobbyists when it comes to the dangers of drilling off Virginia. Or, they use data without much thought. McDonnell, for instance, has cited the supposed economic benefits from drilling according to an Old Dominion University report. But the author of that report says it was a quickie job and shouldn’t be taken seriously.

    Virginia has a lot to lose in the event of an offshore rig disaster. Other industries (real ones) affected include seafood, commercial shipping and the military, all of which have questioned the need for drilling when it isn’t even clear the reserves are out there.

    At least Obama has the sense to slow down the parade to offshore drilling.

    Peter Galuszka


  • Lies About Federal Workers

    A certain Bacon’s Rebellion blogger whose initials are “JAB” has just written a book called “Boomergeddon” in which he takes a strong libertarian/conservative /Cato viewpoint to try and scare us into believing that the end is near because of government spending.

    And while I dare not name this individual because it would deeply embarrass him, I feel it necessary to post this column (in part because he came after me on immigration) but I do it feel it necessary to bring to the attention of the BR reading public the obfuscations, if not down-right lies, with which we have been presented.

    If you read this individual’s book “Boomergeddon” who will be treated to a total trash of the federal worker and Washington. The author says such things as “the Imperial City is well insulated from the travails of the general economy.” He claims that while private sector Americans suffered with layoffs and losses, the number of federal workers exploded. The average pay, the author claims, is about $71 K compared with $40K for the average schmo.

    The author does note that federal workers do, on average make less than those in the private sectors. But if we believe his logic (and/or baloney) we are supposed to accept that the national policy of the U.S. is in hostage to a bunch of self-serving, over-paid zealots who all voted to Obama and want to bring us socialism that they control.

    Which is why today’s Washington Post is so interesting. Max Stier, president and CEO of the non-profit Partnership for Public Service, writes about the “Five Myths about Federal Workers.” A few highlights:
    • Fed workers make at least 24 percent less than private sector ones.
    • “Conservative think tanks such as the Cato Institute” (from which much of “Boomergeddon’s” data is drawn) claim otherwise, but they comparing apples an oranges, i.e. the pay of a small practice doc in Iowa as compared to a federal cancer researcher leading 50 people at NIH.
    • The federal workforce is not bigger than ever. Less the postal service, it is about 2.1 million or slightly smaller than it was in 1967 even while the nation’s population has grown much more.
    • You can fire federal workers.
    • Not all feds are paper pushers who die to vote for Obama. Some do real work and have won Nobel Prizes.
    • Barack Obama’s unfortunate federal pay freeze won’t do much to cure budget ills. The savings just ain’t there. Just don’t believe the JABs.

    My advice? Be careful of people who go over the top in using A-bomb bursts as book cover art to make their point. They are selling a tissue of lies.

    Peter Galuszka


  • Quote of the Day: Neal Peirce

    From Peirce’s column on Citiwire.net:

    Citiesโ€™ revenues will plunge sharply as property taxes, in their first year of recession-impacted reassessments, get set to decline deeply in 2011. Local government fiscal shortfalls may total $83 billion, which the League of Cities estimates may force up to 500,000 staff reductions. Basic city services will shrink. Infrastructure projects will get cancelled or postponed.

    These are hard times for Americaโ€™s local governments. Economists may declare the Great Recession is โ€œover,โ€ but localities see a different picture. The federal stimulus monies that helped so many of them balance their budgets runs out December 31. So does Washingtonโ€™s two-year old โ€œBuild Americaโ€ bond program, which has made local infrastructure borrowing more affordable.

    State and municpal governments face nothing but hardship in the years ahead. It’s time for fundamental change, not the usual short-term 3%-budget-cuts-across-the-board belt tightening. If we fail to rise to the occasion, we face a future of entropy and decay.


  • Prince William Policy Vindicated?

    We have read posts filed periodically on this blog by a co-blogger (I won’t mention any names but his initials are PG) about the “xenophobic” motives behind the “wicked brew of discriminatory laws” enacted by the “Know Nothings” of Prince William County. Chief among the ordinances passed back in 2007 and 2008 was a provision that required county police to inquire into the immigration status of people detained for a violation of state or local law.

    The question of how to deal with undocumented workers in Prince William County flared into a heated controversy that not only outraged PG but attracted national attention. With the passage of three years, emotions have settled down. It is now appropriate to ask, how did things work out?

    As it happens, the Center for Survey Research, a unit of the Weldon Cooper Center for the University of Virginia, has just published an exhaustive analysis at the request of the Prince William County Police Department, which funded the study. The report, “Evaluation Study of Prince William County Police Illegal Immigration Enforcement Policy,” provides a nuanced picture that will provide ammunition for both sides of the debate. But proponents of the policy are most likely to feel vindicated. (See the PowerPoint summary here.)

    The seven authors concluded that the policy was “smoothly implemented” and the county experienced few of the dire consequences — overzealous enforcement by police, a flood of litigation — of which opponents warned. Hispanics were not subjected to a wave of invidious racial profiling. Of the roughly 3,000 suspected illegals checked by police between March 2008 and June 2010, 99% were confirmed to be illegal.

    Moreover, the policy had a modestly beneficial effect on the crime rate. In 2009 illegals accounted for for 8% of the arrests for rape, 3% for robbery, 9% for aggravated assault, and 6% for larceny. The biggest impact was on arrests for public drunkenness, 22.4% of which involved illegals. Overall, crime rates trended down slightly in 2008 as compared to 2007. A modest decline in violent crimes departed from the experience of other municipalities in the Washington, D.C. region.

    The numbers do not bear out the prejudices of those who painted illegals as especially inclined toward criminality. But neither do they support claims that undocumented workers are more likely to be law-abiding than native-born citizens.

    The study could document no financial savings to Prince William taxpayers, undermining one of the claims that agitated the send-the-illegals-home movement. The number of English-as-Second-Language students leveled off but did not decline. Most other services are federally regulated or funded, and most are denied to illegal immigrants by federal law or county ordinance.

    As for public nuisances, the experience was a mixed bag. Prince William experienced a dramatic decline in the number of complaints about parking in overcrowded properties — down 38% — and less loitering at day labor sites. Yet weed/tall grass violations doubled between 2006 and 2008.

    To me, the most interesting finding came from polling data that tracked Hispanics’ attitudes toward the county police and the county generally. The percentage of Hispanic respondants who had a favorable view of Prince William’s quality of life and expressed trust in county government took a nose dive between 2007 and 2008, clearly reflecting the fears engendered by the controversy and the wave of accusations that the new policies were motivated by xenophobia, dislike of “brown people,” hostility to Hispanics and so on.

    What is remarkable is how strongly the opinions of Hispanics have bounced back. In 2010, Hispanics were more likely than blacks and others (presumably whites and Asians) to “want to live in PWC 5 years from now.” Admittedly, Hispanics don’t feel as favorably about the county as they did before the controversy erupted, when their views were more positive than those of whites or blacks by an ever higher margin.

    The UVa researchers concluded that “it IS possible for a local government to have an impact on its illegal immigration experience.” Hispanics, for the most part, have gotten over the controversy. Maybe the rest of us should, too.


  • Will Richmonders Subsidize JetBlue?

    It never ceases to amaze how Richmond’s business elite, while espousing free markets, are at heart state capitalists, sort of like Lee Kwan Yew of Singapore.

    The latest ripple: the business community has organized $600,000 in public money to go to a “Save Low Fares Richmond” campaign to keep carriers such as cheap fare carriers as JetBlue and AirTran from continuing to bolt from the capital city’s anemic airport.

    Now comes the latest twist. JetBlue has the chutzpah to ask Greater Richmond to pay subsidies so that JetBlue will restart its now discontinued flights from Richmond to JFK Airport in New York. The carrier ended the flights in November because of low ridership. You heard that right — if Richmonders want cheap air service, the public will have to come up with millions of dollars to bankroll a private air carrier.

    Richmond’s “behind-the-scenes” business elite such as Kim Scheeler, president and CEO of the Greater Richmond Chamber of Commerce, says he wants to sit down and talk with JetBlue whose CEO pitched the goofy subsidy idea. “If someone asked me to raise X million dollars, I’d be hard-pressed to do it, just because of the economy”

    Just because of the economy? Whatever happened to the free market which all these denizens of Adam Smith say brings out the best, the most creative, the most robust ideas? Naturally, the Richmond Times-Dispatch floated the idea as its lead story on its front page to prepare the public for local and regional subsidies.

    After all, its publisher, Thomas A. Silvestri, is also chairman of the Richmond Chamber and loves to work behind the scenes out of public view being a “Leader” and making decisions about public money. If the public has something to say, they can write a letter to the editor or attend one of Silvestri’s gong shows called “Public Square” which is another gimmick to make the public believe they are getting information and their voices are heard. From Silvestri’s point of view, it is a lot cheaper to hold these Oprah shows than hire real reporters to do real reporting given Media General’s penchant for valuing profit margins over public service.

    The giant hypocrisy here is that the Richmond business elite and the politicians they back, such as soon to be House Majority Leader Eric Cantor, are all rock-ribbed, free market Republicans. We get to hear lots of speeches of how capitalism and the survival of the fittest is the best way to go.

    Until it hurts their travel budgets, that is. Air travel in Richmond has been hitting major turbulence. The business elite expanded Richmond International Airport with more than $250 million in new terminals and parking lots. During the go-go economy of George W. Bush, low fare air carriers entered the Richmond market and broke the stranglehold on high prices demanded by U.S. Airways and Delta.

    All was well for a few years. You could fly for a couple of hundred bucks instead of a cool thousand. But then the Bush economy blew up. In Richmond, chip-maker Qimonda shut down because of world chip trends. Bad management folded mass retailer Circuit City. The financial mess imploded LandAmerica. Racked by health-related lawsuits, Philip Morris split itself up into separate domestic and international firms. The former doesn’t travel as much because Philip Morris USA has consolidated cigarette making in Richmond after shutting plants in North Carolina in Kentucky. The international company makes higher tar and nicotine products for unsuspecting foreigners out of Switzerland.

    This is a long winded way of saying that the free market economy, at least in Richmond, knocked the legs out of the rationale for low priced carriers.

    In response, our free market local leadership is considering going the statist route, sort of like the USSR’s former Aeroflot or Lee Kuan Yew’s Singapore Airlines — government subsidies to help out business. They make the same arguments for higher speed rail, which will cost billions of dollars just so executives can zip to D.C.’s Union Station in 90 minutes rather than fight Interstate 95 traffic. And, supposed free market champions like Cantor work behind the scenes to get those government subsidies.

    Another irony is that years ago, before 1978 airline deregulation, airlines had to serve secondary markets like Richmond. The government had some say over airfares. Our “Leadership” is very much against government reg (Cantor is always talking about “getting the government off our back.”) Yet, Richmond’s current predicament is very much a result of dereg and now some out there expect the public to pay subsidies to airlines. The logic here is so skewed it is painful to contemplate.

    Somehow, the public seems left out of the deal-making. But they can always go to a Public Square.

    Peter Galuszka


  • A Glimpse of Boomergeddon in Virginia’s Future

    Virginia will pay an estimated $594 million in 2012 to service its $9 billion in tax-supported debt. That will make interest payments the sixth largest category of expenditure in the General Fund budget, behind public education, Medicaid, higher education, corrrections and the car tax rebate.

    And those numbers do not include debt on transportation projects, or the money “borrowed” from the Virginia Retirement System.

    The analysis comes from a 30-page reported prepared by the Senate Finance Committee staff for presentation to the committee during a November 18 retreat in Staunton. Reports Jim Nolan with the Times-Dispatch:

    The report paints a picture of a commonwealth that is in deeper debt than it has ever been — to the point where it cannot borrow any more money if it wishes to stay within a self-imposed debt capacity cap of 5 percent of annual tax revenues.

    The state has stacked on loads of new debt since 2007, including the three largest debt authorizations in the state’s history: $3.2 billion for transportation (parts of which were deemed unconstitutional), $2.8 billion for a capital improvement program, and $1.4 billion for capital construction projects in eduction.

    Virginia cannot afford this nonsense anymore. Federal aid to localities under the “stimulus” bill is coming to an end. Medicaid burdens continue to mount. The economy, especially the housing sector, will continue to lag and tax revenues will remain depressed. Legislators simply must adapt to the new fiscal reality… or they will face the same treatment at the polls next year meted out to federal officials in November.


  • Tobacco Patch Corruption

    John W. Forbes II, state secretary of finance under former Virginia Gov. Jim Gilmore, has been sentenced to 10 years in prison after pleading guilty to federal wire fraud charges. It is by far the biggest scandal involving a state cabinet-level official in years.

    The case also raises questions about a state entity that is supposed to use money obtained in a massive 1998 lawsuit settlement against four major tobacco companies for the public good.

    That entity with the long-winded title of the Virginia Tobacco Indemnification and Community Revitalization Commission has so far distributed $728.7 million for do-good projects in the tobacco belt stretching from the economically hard-hit counties in Southside and Southwest Virginia. It also has paid out $288.3 million to state tobacco growers on the theory that they need help to weather the decrease in tobacco sales following a slew of health-related lawsuits and the end of a 1938 federal program that artificially propped up tobacco prices.

    Forbes, who was the state’s top financial official from May 2001 until January 2002, also served on the tobacco commission’s board. In June 2001, he won a $5 million grant from the commission to set up the Literary Foundation of Virginia. Designed to promote adult literacy, the program apparently did little other than provide $1 million in salaries for Forbes and his spouse and help them buy a million-dollar house.

    “You not only betrayed the citizens of the commonwealth, but also the governor that appointed you,” U.S. District Judge Henry E. Hudson told Forbes as he passed down the 10-year sentence in Richmond on Nov. 23.

    But one has to ask what the real purpose of the tobacco commission is. It has done some useful work in helping small businesses grow and narrowing the digital divide in poor counties dealing with declines in the tobacco, textile and furniture sectors.

    But why do tobacco farmers need nearly $300 million in aid? They had been living off federal largess for decades, namely, from a Depression-era program that kept tobacco prices artificially high by having the federal government restrict tobacco growing and sales.

    After years of protection by a Congress controlled in part by Southern Democrats, the program created “allotments” allowing tobacco growing in areas of only about four acres. These units could be bequeathed to survivors and kept tobacco prices at levels perhaps several times higher than that of far more useful crops such as corn and soybeans.

    I reported on the program for BusinessWeek back in the 1990s in my home area of Beaufort County, N.C. where I started reporting on tobacco in the early 1970s. One farmer had ammassed allotments of 30 acres and he paid more than a milllion dollars on the crop, thanks to the system. It was far more than what he got from other crops. The support program has since come to an end.

    Virginia officials thought that tobacco farmers, who grow a deadly product, deserved more. So, one of the tobacco commission’s first activities was sending allotment holders checks for simply having an allotment. Some got up to $12,000.

    A check of the allotment holders’ addresses that we did some years back at Virginia Business magazine showed that in some counties many holders didn’t even live in Virginia. In Brunswick County, about 28 percent didn’t live in Virginia, but in cities such as Philadelphia, Baltimore and Las Vegas. On Halifax County’s list, one holder lived on the Gold Coast of downtown Chicago.

    All got checks from the commission’s $2.1 billion war chest. Another $1.7 billion went to the state’s general fund to be spent as the state saw fit. Although the tobacco settlement — Virginia’s share was $4.2 billion — was intended to be used to convince people not to smoke, only a tiny portion of Virginia’s payout has been used for this purpose.

    This shows, once again, how much tobacco reigns as King of Virginia, despite the corruption it seems to generate.

    Peter Galuszka


  • MORE ON THE ROLE OF CITIZEN MEDIA

    It has been some time since EMR visited the issue of MainStream Media (Enterprise Media) and THE ESTATES MATRIX. Among the four major projects on-going at SYNERGY one focuses on Citizen Media โ€“ the media serving the interests of the New Fourth Estate โ€“ citizens / Households.

    FIFTH ESTATE OR FIFTH WHEEL

    A recent discussion on Citizen Media turned up reference to โ€˜the fifth estate.โ€™ It turns out that there are many voices in the โ€˜fifth estateโ€™ dialogue. A quick survey revels that the โ€˜discussionโ€™ of a โ€˜fifth estateโ€™ appears to be among those who have not yet come to grips with the reality that the Old Fourth Estate, knighted by Edmond Burke in 1837, is dead and gone.

    True believers in โ€˜Journalismโ€™ cling to the delusion that the Old Fourth Estate lives on. In this context, they need a pigeon hole for the non-Enterprise โ€˜news and entertainmentโ€™ activity found in the electromagnetic environment โ€“ thus โ€˜the fifth estateโ€™ handle.

    As documented in THE ESTATES MATRIX, most of the Old Fourth Estate was SOLD OFF decades ago. That is not a bad thing unless those involved do not understand what happened.

    This segment of the Old Fourth Estate is now part of the New Second Estate (Enterprises) and is known as Enterprise Media (aka, MainStream Media).

    Some of the Old Fourth Estate โ€“ largely supported by First-Family-of-Journalism-Philanthropy โ€“ is now part of the New Third Estate (Institutions). It is a major component of what is known as โ€˜The Alternative Media.โ€™ The Alternative Media shares the Institution Media sphere with, among others, the spinners and flacks of the Think Tank Media and the Partisan Politics Media. It is hard to tell them apart because they ALL drape themselves in the white robes of โ€˜Journalismโ€™ and they frequently put on a crown labeled โ€˜freedomโ€™ or โ€˜truthโ€™ โ€“ but almost never โ€˜science.โ€™

    There is also New First Estate (Agencies) Media. Staff and consultants produce mountains of reports, data, studies, legislation and opinions for all three branches at the three current levels of Agency activity.

    Finally, there is the New Fourth Estate (citizen / Household) media. This is a vast seething vat of fact, fantasy, emotion, ego and confusion facilitated by computing equipment and distributed by electronic communications and cheap paper.

    The idea that the โ€˜journalism-basedโ€™ media is still a legitimate โ€˜fourth estateโ€™ that is trying to provide citizens / Households with the information they need to make intelligent decisions in the voting booth and in the marketplace is preposterous. See THE ESTATES MATRIX

    The idea that, beyond this ghost of estates past, there is a โ€˜fifth estateโ€™ with the leverage, power, influence, impact or stature akin to Agencies, Enterprises or Institutions is preposterous squared.
    If one is looking for a โ€˜new fifth estateโ€™ that has economic, social and physical clout in the real world comparable to the Estates of the Realm (1304 to 1775) from which the current Four Estates emerged, the most logical candidates would be PACs and lobbyists. Or perhaps terrorists? How about the Communist Capitalist?

    The yapping crowd of Bloggers and Tweeters having an Estate of their own? Please!!

    ED BURKE WAS WRONG

    The delusions concerning a media fourth estate and now a fifth estate is rooted in the mistake that Edmond Burke made in 1837 declaring News Media to be the Fourth Estate in the first place.

    The early 1800s WAS a time when a new Estate was emerging in Europe โ€“ it came along after the Civil War in the US. But this new Estate was โ€˜citizens,โ€™ not โ€˜media.โ€™ The rise of citizens as an Estate reflected the tectonic plate shift that disassembled the Old First Estate and the Old Second Estate in 1775. See End Note One.

    The Media of the 18th, 19th and 20th century DID represent citizens and Households โ€“ for a while. That was because citizens bought the media product โ€“ literally โ€“ to get news โ€“ the information they needed to make the transition from an agrarian society to an Urban society.

    As citizens became more educated and more prosperous โ€“ the โ€˜rise of the Middle Class (which is also gone, see THE ESTATES MATRIX) โ€“ more and more of them voted and more and more of them could afford to buy stuff. The influence of citizens / Households grew and thus so did the influence of the media.

    But as media outlets gained influence they also made money and that attracted the New Second Estate. When the founders of the First Families of Journalism got tired, and the next generation got lazy, almost all the old line media outlets sold out to Enterprises. Those that did not sell out, morphed to become stockholder / balance sheet accountable Enterprises. This allowed First Family of Journalism members could get their money out of the media activity without an outright sale.

    Most of the NEW media outlets have been started and / or agglomerated by Enterprises because it required capital to get into and stay in a field dominated by Enterprises. (Electronic media allowed some entities that did not generate much cash flow to exist but that is another story for another time.)

    This is not โ€˜goodโ€™ or โ€˜badโ€™ it is a fact.

    โ€˜Journalistโ€™ and the schools of journalism and the journalism foundations supported by First-Family-of-Journalism-Philanthropy have not yet come to grips with the reality that Enterprise Media cannot not REALLY support the ethics and goals of โ€˜Journalism.โ€™

    Morally and legally, Enterprise Media answers first to the stockholders. If the owners of a media outlet have goals other than maximizing profit, they are by definition an Institution and the owners are not stockholders. See Robert Reich on the impossibility to serve two goals in Supercapitalism.

    There is no question that journalism is a profession and there IS a great Journalism in the sky. Journalism (capital โ€˜Jโ€™) is guided by principles that benefit all four Estates. However, medicine is a profession, law is a profession, plumbing is a profession,… One does not see doctors, lawyers and plumbers calling themselves an Estate.

    CITIZEN MEDIA

    Because citizen / Households (The New Fourth Estate) are not getting the information they need to make intelligent decisions in the voting booth and in the marketplace, there is a desperate need for Citizen Media โ€“ media serving the Fourth Estate.

    If one doubts that, check out The Anger of Ignorance that can be found in Enterprise Media and especially in Institutional Media.

    In the view of SYNERGY, the only way citizens will get the information they need is to have their own Estate-serving media. The challenges for Citizen Media are:

    1. Generating a process to gather, analyze, vet and present data / information related to the scales and range of interest of citizens that effectively involves journalists and the principles of Journalism. Journalism IS important, just not AS important as journalists tell each other.

    2. Successfully involving volunteers in the gathering, analysis, vetting and distribution of information and in facilitating the cross-platform, cross-generation and cross-socioeconomic self-identification to reach a clear majority of citizens in any Alpha Community.

    Volunteers are essential because that is the only way any Organization (in this case an Institution serving citizen communication needs) can afford to operate, AND

    Because it is the only way to generate a sufficient level of awareness, interest, understanding and action across multiple scales and multiple topics to achieve the goal of proving the information needed for citizen to make intelligent decisions in the marketplace and in the voting booth. Survival of civilization depends on achieving those goals. (See PROPERTY DYNAMICS and the potential of understanding THE CURRENT TRAJ
    ECTORY.) AND

    Because advertising as a source of supporting the media is dying. Citizens do not believe advertising. Advertising driven Mass OverConsumption has led to debt, hardship and disintegration of a stable society.

    Much of The Great Recessionโ€™s overhang is due to the failure of advertising to โ€˜stimulate.โ€™ That is a good thing because there is a dwindling supply of resources to satisfy that stimulated consumption. See THE CURRENT TRAJECTORY for documentation that the Invisible Hand is far ahead of the โ€˜leaders.โ€™

    3. Establishing a clear understanding of the components of human settlement. That requires a comprehensive Conceptual Framework and a robust Vocabulary to articulate that Framework.

    These tools are necessary so that citizens can identify where they are and where they want and need to go โ€“ literally. Where IS my Dooryard, Cluster, Neighborhood, Village, Community, SubRegion, New Urban Region โ€“ or what ever one chooses to call them.

    Citizens and the media that support them must have this understanding so they can sort out what is important information, what is interesting information and what is entertainment and hype. See PRIMER

    Without a comprehensive Conceptual Framework and a robust Vocabulary, citizens and their Households are adrift. Due to Geographic Illiteracy and Spacial Ignorance they do not even know they are lost.

    It will be a while before most journalists understand this but until they do, citizens will continue to flounder without the information they need to make decisions in their own economic, social and physical best interest.

    CITIZEN MEDIA IN CONTEXT: THE BOTTOM LINE

    Observer recently posted a comment on โ€œA Serious Proposal for Restoring Fiscal Sanityโ€ (14 Nov 2010) concerning a discussion of legislative process and the role of / need for super majorities. The observation can be found in End Note Two. Observer ended the comment with this observation:

    โ€œ…even these changes will make little difference โ€“ in fact they will not happen โ€“ until citizens have better information upon which to make decisions in the voting booth and in the marketplace that reflect citizen / Household best interests.โ€

    In fact citizens cannot make well informed decisions on their own best interest on ANY topic until they have a reliable source of sound information.

    That is true for Fundamental Transformation of human settlement patters,

    That is true for Fundamental Transformation of governance structure (the topic Observer was addressing)

    That is true for Fundamental Transformation of the economic system.

    Without a reliable source of sound information democracy and market economies are not possible or as noted in โ€œThe Bottom Line in 500 Wordsโ€:

    On a small planet with Global economic, social and physical interconnections, GROSS INEQUITY at the Community-, SubRegional-, Regional-, MegaRegional- and continental-scales OR between ethnic and religious groups is NOT sustainable.

    All citizens must have the opportunity to prosper based on effort, ability and acceptance of responsibility for their actions โ€“ individual and collective. Success cannot be based on gambling, happenstance and inheritance or on inequitable distribution of resources and opportunity.

    Avoiding Collapse of civilization as-it-has-evolved and the survival for Homo sapiens comes down to understanding that:

    In a โ€˜flatโ€™ world with:

    1. wide-spread literacy,

    2. Instant communications / information dissemination, and

    3. Wide distribution of weapons of mass destruction / massive stockpiles of weapons of conventional destruction / ubiquitous access to weapons of inter-personal destruction:

    There is no alternative but to make Fundamental Transformations of governance structure. These transformations can facilitate evolution of Fundamental Transformation of humans settlement patterns and of economic systems. These three Transformations are imperative if citizens are to achieve a sustainable trajectory for their civilization.

    The question remains:

    Will the genetic proclivities toward competition, acquisition, consumption and xenophobia that got Homo sapiens to this point in their evolution prevent the emergence of an Urban society with a sustainable trajectory?

    EMR

    END NOTES

    1. A Note of clarification on THE ESTATES MATRIX โ€“ PART TWO of TRILO-G.

    It is well documented that the evolution of the Estates of the Realm evolved in different ways in different empires, kingdoms and principalities up until 1775. Depending on who held the most cards at a particular time in a specific location the sphere labeled First Estate (Nobility OR Clergy) and Second Estate (Clergy OR Nobility) varied. In THE ESTATES MATRIX it is assumed that Nobility is the First Estate and Clergy the Second Estate. That makes the transitions after 1775 easier to explain. The Nobility is replaced by Agencies (Of the people, by the people) as the First Estate and the former nobility became a class within the Third Estate (Institution). The Clergy slipped from being the Second Estate to become a part of the Third Estates (Institution) and is replaced by Enterprises as the Second Estate reflecting the rise of Capitalism and Urbanization.

    2. Observers comment on the legislative process and the requirement for super majorities to pass legislation in โ€œA Serious Proposal for Restoring Fiscal Sanityโ€ 14 Nov 2010:

    โ€œTo several of us (perhaps a majority?) much in this string of comments is pointless.

    โ€œThe comments are trapped under a number of dangerous assumptions:

    โ€œFirst they are trapped under the false assumption that it makes sense to have only three levels of governance (Agency) that correspond to the late 18th century agrarian society model โ€“ municipal, state and federal. New levels of Agency must evolve to reflect economic, social and physical reality.

    โ€œSecond it is trapped in 14th century idea the highest level of governance has the final say on EVERYTHING. In this context, the only plurality threshold that counts is at the federal level.

    โ€œThird it is trapped in the assumption every decision needs to have the same plurality threshold โ€“ the same for setting speed limits and for doubling the debt limit.

    โ€œFourth it is trapped in the assumption that once passed every law is good FOREVER. Scaled sunset provisions should apply to all legislation, to all regulation and TO most judicial decisions. โ€œIs this STILL the right thing to be doing??โ€

    โ€œAnd even these changes will make little difference โ€“ in fact they will not happen โ€“ until citizens have better information upon which to make decisions in the voting booth and in the marketplace about citizen / Household best interests.

    โ€œProfessor Risse is working on a note re โ€˜the new fifth estateโ€™ that may touch on this.

    Observer


  • Sink Riverboat Gambling in Virginia

    There’s a movement afoot in the Old Dominion to bring in riverboat gambling to help rescue transportation finances.

    Let’s hope it springs a leak.

    Norfolk City Councilman Paul Riddick thinks that bringing in water-borne gambling palaces would be a great way to boost the state’s transportation budget, which is short upwards an estimated $100 billion to do all it needs to do over the next 15 years. He’s pushing to have the idea taken up by the General Assembly, which will meet in less than two months.

    It’s the latest in a series of schemes to raise money without raising taxes. Gov. Robert F. McDonnell’s plan to generate revenue by privatizing ABC stores, however, has been on a bit of a bender and is seen as going nowhere.

    Virginia can save itself a lot of grief if it avoids boosting gambling beyond the horse races. Look at Maryland, which held a constitutional referendum two years ago to allow slot machines.

    Maryland’s plan, which was backed by Gov. Martin O’Malley, might bring in money but it has also brought a lot of baggage. To quote Citybizlist Baltimore, “no single issue in memory in Maryland has engendered more lobbying money, public rallies, legislative hearings, arm twisting, bill printing, press reporting and hot air than slots gambling.”

    This is exactly what Virginia can expect if Riddick’s idea brings floating gambling hells to the industrial Elizabeth River or the Chesapeake Bay. After the run up (or run down) to privatizing ABC, it’s all Virginia needs.

    My view is that people should do what they want with their money, but gambling is a sure-fire way to lose it. As The Virginian-Pilot notes, quoting finance magnate Warren Buffett, “gambling is a tax on ignorance.”

    What’s more, one wonders where the market would be. West Virginia allows gambling and the once tony Greenbrier resort has recovered from sure demise by becoming a casino. Atlantic City isn’t that far away. Maybe new gamblers would come up to Norfolk from the tobacco fields and swamps of Eastern North Carolina. And there’s always a criminal element that pops up, like yard moles, when gambling is around.

    In any event, riverboat gambling is a bad idea that comes with a lot of bad stuff. I hope it doesn’t float.

    Peter Galuszka

    (first posted and printed in The Washington Post)

  • GM Versus “Boomergeddon”

    General Motors, long considered by some as a hopeless dinosaur, seems to be embarking on an historic comeback. It launched an Initial Public Offering of new stock for the first time in 18 months and on the first day of trading, shares were up nearly 7 percent.

    Proceeds from the IPO will be used to help GM pay back the federal government for the $49.5 billion that it was given as it was losing billions of dollars, facing tremendous health care and pension debt and seemed to be stuck with boring, loser products.

    Yet with the federal money, GM seems to be turning itself around remarkably quickly. It has made $4.07 billion so far this year. Other highlights include the introduction of its electric Volt car and continued sales of winning products such as the Chevie Equinox and the Buick LaCrosse.

    So, what is this, a happy news story?

    Not if you read “Boomergeddon” it isn’t. According to author James A. Bacon, who launched his doom-and-gloom book only this August, GM is a Exhibit A of failed U.S. corporate management, overly powerful labor unions and an Obama Administration that can be easily pushed around.

    To quote Mr. Bacon:

    “Under Obama, some $49 billion in TARP money went to keep General Motors alive, while billions more went to Chyrsler. The stimulus inata showered billions more upon favor seekers with any remote connection to conservation and renewable energy: wind turbines, solar cells, clean coal technologies, carbon dioxide sequestration, smart grids and high-speed rail. Apply for a grant, pitch a good story and win some money.”

    I particularly like that last, loaded sentence. “Pitch a good story.” “Win some money.”

    There may be some problems with the GM IPO. Holders of earlier stock get nothing. But it still looks like Obama made a good bet with GM. It may be news to Mr. Bacon, but this icon of American industrial power might not be dead just yet. If Jim is so wrong on GM, could he also be wrong on the federal deficit and debt?
    Maybe there’s no “Geddon” with the “Boomer.”

    Peter Galuszka

  • Talking the Talk

    Soon-to-be House Majority Leader Eric Cantor promises to bring a results-oriented approach to governing in Washington, reports Tyler Whitley with the Times-Dispatch.

    “This will not be a spring of 100 days or 100 hours, but rather a long march, requiring top-to-bottom reform, focused on producing results in three key areas,” he said: cutting spending, shrinking the size of government, and removing the cloud of uncertainty hanging over the private sector.

    He’s talking the talk. Let’s hope he walks the walk.


  • A Serious Proposal for Restoring Fiscal Sanity

    Virginians can rest assured that there are at least two serious budget cutters in Washington, D.C.: Erskine Bowles and Alan Simpson, co-chairs of the National Commission on Fiscal Responsibility and Reform. Their draft budget-balancing plan issued Wednesday gores so many oxen and butchers so many sacred cows that the Chicago Board of Trade would be well advised to suspend trading on cattle futures.

    The co-chairmen’s plan would cut discretionary spending by $100 billion a year and defense spending by another $100 billion. One tax-reform option would eliminate $1.1 trillion in “tax expenditures” — special deductions, credits and exemptions not available to all — in order to raise hundreds of billions in new revenues while also lowering the top tax rates. The duo also tackles long-term entitlement reform and advances proposals for putting Social Security and Medicare on an actuarially sound footing. All told, the plan purports to achieve $3.8 trillion in deficit reduction through 2020, reducing the deficit to 2.2% of the economy by 2015.

    As Simpson memorably puts it, invoking his own mammalian metaphor, “We have harpooned every whale in the ocean, and some of the minnows. No one has ever done that before.”
    There is no assurance that the full commission will adopt the Bowles-Simpson plan. And even if the commission does sign on, there is no guarantee that Congress will enact any of it. Indeed, within hours of the plan’s release, a parade of politicians and special interests had expressed umbrage ranging in intensity from polite concern to outrage. (The co-chairs “just told working Americans to ‘drop dead,’ said AFL-CIO Chairman Richard Trumka.)

    Still, the plan demonstrates the magnitude of change required to restore the United States to a fiscally sustainable path, and it punctures any illusions that budgetary rectitude can be restored without both cutting spending or by raising taxes. The co-chairs’ proposal will trigger the first serious budgetary debate this country has had in decades.

    Bowles and Simpson articulate important guiding principles. “America cannot be great if we go broke,” they write. “Our country will not be able to compete without a plan to get this crushing debt burden off our back.”

    Americans have spent the past two years making tough choices in their own lives, the co-chairs go on to say, and they expect the political leadership in Washington to do the same. “It is cruelly wrong to make promises we can’t keep. … We need to be willing to tell Americans the truth.”

    To avoid disrupting the fragile economic recovery, the draft plan would delay making cuts until Fiscal 2012 and would phase them in gradually. While preserving the safety net for poor Americans, Bowles and Simpson focused on promoting economic growth and bolstering America’s economic competitiveness. Priorities include cutting red tape and inefficient spending that puts a drag on job creation, with the goal of making America “the best place to start and run a business and create jobs.”

    Seventy-five percent of the budget gap is closed through spending cuts. The long-term goal is to “end redundant, antiquated, ineffective spending,” and also to improve the productivity of the federal workforce by 3% annually. Chopping the number of federal employees by 10% would save $13.2 billion annually by 2015.

    Tax revenues would rise under the plan, but the tax code would be restructured to end economically unproductive credits, exemptions and deductions. Under “the Zero Plan” the top personal income tax rate would be rolled back to 23%, and corporate taxes to 26%. In other words, the plan actually would increase incentives for Americans to work hard and invest their capital productively.

    The plan is far from perfect. I am dismayed that budget reform would deploy traditional budget-cutting controls to limit the increase in Medicare costs rather than focus on transforming the health care industry around the principles of productivity and quality. And I’m disappointed that Bowles and Simpson would slash security spending without articulating a scaled-back global strategy aligned with the military’s reduced force structure.

    But those criticisms are remediable. What’s important is that Bowles and Simpson have changed the terms of debate in Washington. Whereas the Republican leaders of the House had been talking in terms of $100 billion in budget cuts, plus caps on spending, the benchmark has just shifted to $372 billion in savings by 2015 and $761 billion by 2020. The nation will have a very different discussion than the one that was shaping up a week ago.

  • The Conflicted Virginia University

    Virginia’s schools of higher learning are among those universities most at the center of issues of conflicts in research, according to a new publication of the American Association of University Professors.

    The most recent edition of the AAUP’s “Academe: the Conflicted University” publication includes examples of Virginia schools as it examines how seriously academic freedom and research can be conflicted.

    One article, “The Costs of a Climate of Fear,” reports just how gingerly researchers into climate change issues must tread these days because of the highly-polarized, political fervor surrounding the issue.

    In California, for instance, one researcher at the Lawrence Livermore National Laboratory got a message about his global warming work. His doorbell rang and when he answered, there was a dead rat on his doorstep and a man driving away while shouting obscenities.

    In Virginia, the approach might be more civil, but it is far more serious, namely right-wing Atty. Gen’s continued assault on global warming research at the University of Virginia. The report’s author, Michael Halpern of the Union of Concerned Scientists, reviews how Cuccinelli has doggedly gone after former U.Va. researcher Michael Mann for alleged fraud, even though several academic reviews have cleared him of any wrong-doing.

    Attorneys general from across the nation are watching closely to see how the “Cooch” gambit plays out, but Halpern notes: “a court of law is not the place to settle scientific disagreements, and an attorney general should not be in the business of evaluating scientific research.”

    Another part of the AAUP study delves into an issue dear to Virginia’s heart: tobacco. Author Allan M. Brandt dead of the Graduate School of Arts and Sciences at Harvard, notes that more and more schools are refusing tobacco research money, including the business school at the University of Texas at Austin, the Emory University School of Medicine, Harvard Medical and Public Health Schools and Johns Hopkins.

    The University of Virginia accepted $25 million in research money from Philip Morris in 2007, Brandt reports, although he doesn’t mention the controversy three years ago in which it was revealed that Virginia Commonwealth University had accepted research money from Philip Morris USA along with agreements keeping the deals secret. After a national firestorm, VCU admitted its mistake and agreed to no longer accept such one-sided contracts, although it still will get tobacco money.

    Brandt notes that at least one federal court judge has found Philip Morris guilty of racketeering charges by conspiring to keep secret tobacco’s health dangers and that the firm and other tobacco companies have been effective in shouting down research findings they believe are bad for their business. Brandt has been an expert witness for the government in legal cases involving tobacco.

    The sad part about tobacco is that it has been deeply ingrained in Virginia history since Jamestown. Philip Morris employs about 6,000 people in the state, mostly in Richmond, and is a major contributor to charities and arts such as symphonies and festivals. Their money is welcome since some other corporate donors have gone belly up.

    But one has to wonder why such big name schools as Harvard, Johns Hopkins and UT Austin all ban tobacco money outright and what makes Virginia continue to treat the weed with such reverence.

    As for global warming, the AAUP is right that Cuccinelli’s “going rogue” harassment of U.Va. smacks of the politically-charged witch hunts of the Joe McCarthy era. And with the Republicans winning big Nov. 2, the issue won’t go away.

    Peter Galuszka