Improvements for all Time

How, you might be wondering, would our government behave if we returned to our founding principles and a strict adherence to the Constitution. To reiterate, our original principles include small, limited transparent accountable republican government with equal application of the law to all citizens and corporate entities. Here are specific examples of what that type of governance would look like, and how it differs from the corruption we are subjected to today.

1. No bailouts. To anyone or any company at any time (except possibly in time of war to keep a crucial manufacturer in operation temporarily). It is an abuse of power and a violation of equal protection for the government to choose economic winners and losers. As in intervening on behalf of Bear Stearns but not Lehman Bros. In fact, the potential for catastrophic failures like those occurring in the real estate and credit markets would likely be lower if government did nothing to "ease the pain". Under our limited government approach Fannie Mae and Freddie Mac would never have existed as quasi-governmental groups, much less have had any implicit federal backing. Without those two creating artificial demand for subprime mortgages, the RE bubble would not have been as large as it was and the ripple effect not so damaging.
2. Flat rate income tax. The vast majority of people would pay one, and only one, rate. Probably something between 10% and 20%. Those at the bottom of the income brackets, earning under maybe $25,000 per year would pay no income tax. Ideally, everyone would pay some tax, if we're to have an income tax at all, but this approach reduces the need for supplemental programs or credits for the poor that could be abused by both recipients and government officials. This scheme would eliminate all deductions, credits, and other tricks that politicians can use to grant favors to special interests and friends. Also, it ensures that nearly all citizens have an economic interest in voting and active civic participation.
3. No czars. The word, or the position, is not found in the Constitution and there is no accountability of them to Congress or the voters. Therefore, the czars and their offices, staff, and budgets are gone. And let's not be slick by labeling them "special advisors" or any similar.
   
4. The number of cabinet positions and their corresponding departments would be reduced, at least by half. Those that would remain include State, Justice, Defense, Treasury, and something that would address natural resources and infrastructure. Key agencies that would stay include FDA, CDC, Coast Guard (under Defense), and possibly FCC.
5. Balanced budgets. Congress could not pass deficit budgets unless during times of declared war.
6. No career politicians. Term limits are probably the only feasible route to accomplish this, although it is not without its own faults. In general, no person could hold elected office or appointed position for more than 8-12 years before having to return to private life for at least 2 or possibly 4 years. Also, Congress would meet only 5-6 months of the year in total. It was never expected or intended that legislators and top officials would be anything other than private citizens with real professions that paid their bills. Another solution beside term limits is to ban A/C from all federal buildings, with the exception of military posts. Congress would flee from Washington as soon as Spring arrived like rats from a sinking ship.
7. Social Security funds (or other non-discretionary entitlements) could not be used for anything but Social Security. Ideally, we would admit that this is the largest Ponzi scheme in the history of world and radically reform it. Make it into something like a mandatory savings/retirement account. Social Security is very tricky, both financially and political, so I won't expound on it here.
   

Go let this sink in for a while. I'll have a few more wacky radical ideas for you soon.

Music to My Ears

Russian Punk Rockers Rage Against the Putin Machine


Russia and Putin are usually not topics covered here on Yankee Scribble; I typically leave those Ballista. But since Ballista hasn't made an appearance in over a year, it seems I must take up the slack. Or, more to the point, the angst-filled youth of St. Petersburg have taking their musical jabs at the Soviet-styled strongman. Oh yes, the Ramones and Sex Pistols would be proud. I certainly am. If there is one group that is never afraid to speak out, it's the punk rockers. God bless them.

[T]he outspoken singer of Saint Petersburg-based punk rock band PTVP, saves much of his venom for Russian Prime Minister Vladimir Putin, referring to him as a "pig" in one of his most strident songs.

As the article explains, this is nothing new for Russia, however, these voices have been fading.

[R]ussian rock music lost much of its rebellious spirit after being at the forefront of perestroika, the liberal reforms introduced by Soviet leader Mikhail Gorbachev in the 1980s, musicians and critics say.

Ironically, some of the leading figures in 1980s rock now perform at patriotic concerts organised by the Kremlin.

But in Saint Petersburg, a city long seen as Russia's "window to the West", a handful of bands have defied the trend and continue to speak out.

They include PTVP, whose full name translates as "The Last Tanks in Paris," and some veteran bands who complain of being marginalized on television and radio because of their politics.

"Most bands, for some reason, have become conformist and most music is just fun," said Sergey Chernov, a music columnist for the St. Petersburg Times newspaper who has followed Russian rock since the 1980s.

So how is Vladimir reacting to this scrutiny and criticism? As one would expect of a KGB colonel.

Several times over the years, police rushed the stage and stopped concerts after Nikonov sang about Putin, and once in Vyborg he was hauled off to jail before being freed without charges, band members recalled.

"It is mostly provincial towns that are afraid," Nikonov said.

I sincerely hope PTVP keep it up, regardless of the quality of their music. If democracy is ever going to take deep root in Russia, then the artists, musicians, writers, and other creative folk need to lead the way. Imagine America without Thomas Nast, Bob Dylan, or Thomas Paine. Sadly, I have to ask, how long before these guys are found each with a bullet to the head? Or is that reserved for human rights lawyers? It's so hard to keep track of the many methods used by the Kremlin to eliminate its opponents.

Come to think of it, maybe Ballista has become a PTVP groupie. Either that or he's in the gulag. After all, Ballista's last post was on the Russian invasion of Georgia and I wouldn't put it past Ballista to go ballistic and join the Georgian cause.

Sons of Columbia

A favorite compendium of mine is the Book of American Values and Virtues: Our Tradition of Freedom, Liberty & Tolerance. I turn to it from time to time when I need words of inspiration and a reminder of all that we as a nation have overcome. The other night, after digesting the Declaration of Independence - which you all should re-read occasionally, especially when you hear any news out of Washington - I came to a poem that resides on the opposite page. I found it remarkable in its simplicity and clarity of vision, not to mention the message conveyed. The words had an effect on my and I would like to share them with you now.

Ye sons of Columbia, who bravely have fought
For those rights which unstain'd from your sires you descended,
May you long taste the blessing your valor has brought,
And your sons reap the soil which your fathers defended.
'Mid the reign of mild peace,
May your nation increase,
With the Glory of Rome and the Wisdom of Greece;
And ne'er may the sons of Columbia be slaves,
While the earth bears a plant or the sea rolls its waves.

Let Fame to the world sound America's voice;
No intrigue can her sons from the government sever;
Her pride in her Adams-his laws are her choice,
And shall flourish till Liberty slumber forever!
Then unite heart and hand,
Like Leonidas' band,
And swear to the God of the ocean and land
that ne'er shall the sons of Columbia be slaves,
While the earth bears a plant or the sea rolls its waves.

~ Robert Treat Paine

Ne'er shall the sons of Columbia be slaves.



Update: This is only part of the poem, the first and last stanzas. The entire piece, along with a short bio of the author, can be found here.

The Experts Agree

I'm not the only one who thinks that fundamentals are critical to success. Read the advice one well-respected teacher/blogger offers to another.

Get out your geiger counters

I filed this story away when it first came out but never got around to blogging 'bout it. Then the whiskey power plant news drifted across my monitor and reminded of this gem: Mini nuclear reactors!

Yes, a company is going to market a "garden shed"-sized reactor. The technology was developed by the Los Alamos National Laboratory (think Manhattan Project) and the federal government has given their okay. The CEO of the firm leading this radioactive charge explains:

"Our goal is to generate electricity for 10 cents a watt anywhere in the world. They will cost approximately $25m each. For a community with 10,000 households, that is a very affordable $250 per home."

So far it seems that the only orders are coming from utility providers and infrastructure builders. Call it the ultimate back-up (or primary) generator. But don't expect them to show up in Home Depot any time soon. I know, I was bummed out too. From a practical standpoint, however, this could be a boon to the developing world, where electricity can be scarce. And security is virtually a none-issue because the reactor design is ancient at 50+ years old (physics grad students use way more advanced stuff all the time), the reactors are buried in concrete underground, and there are no moving parts.

All you aspiring Dr. Evils our there, start saving your pennies because this baby would be the perfect complement to a villain lair.

On a somewhat related note, I picked up a new book entitled A Nuclear Family Vacation: Travels in the World of Atomic Weaponry by Nathan Hodge and Sharon Weinberger. Haven't started reading yet, but I'm giddy with anticipation.



Update: Great book. Highly recommended for anyone, particularly those interested in nuclear science, the military, history, or foreign affairs. Among the more memorable parts, and something that underscores a theme of the book, was when the current military officer in charge of our nuclear missiles couldn't remember the term M.A.D. How the world has changed in just a decade or so!

He Spoke His Mind

Alexander Solzhenitsyn died Sunday in his Motherland of Russia. He achieved acclaim for his vivid depictions of a harsh life in the Soviet prisons and exile in the hinterlands. He wrote from experience, having been banished for speaking his mind against a the totalitarian system that had taken control of his beloved nation.

One Day in the Life of Ivan Denisovich was already in my Shelfari collection, included in what I call my personal "Library of a Free Man". I have now added Gulag Archipelago to my "Plan to Read" list.

Solzhenitsyn was no friend of capitalism, but he deplored authoritarianism and the communism from which it sprung even more. In a society ruled by fear he spoke his mind - the censors, secret police, and political puppet masters be damned. For that we praise him today.

Rest in Peace, Alexander Isayevich.

(c) Economist

Russians mourn dissident hero Solzhenitsyn

An Icon of His Age

A profile in courage

We Know What's Best for You

This post from Alex at Marginal Revolution was so nicely put together that I decided to just put the whole thing here.

The Los Angeles council has just passed on ordinance banning new fast food restaurants in a poor section of South/Central LA. William Saletan calls it Food Apartheid and writes: We're not talking anymore about preaching diet and exercise, disclosing calorie counts, or restricting sodas in schools. We're talking about banning the sale of food to adults....It's true that food options in low-income neighborhoods are, on average, worse than the options in wealthier neighborhoods. But restricting options in low-income neighborhoods is a disturbingly paternalistic way of solving the problem. Milton Friedman once said: I don't think the state has any more right to tell me what what to put in my mouth than it has to tell me what can come out of my mouth. Friedman was talking about drug prohibition but today the target could just as easily be food prohibition. Hat tip on the Friedman quote to Don Boudreaux at Cafe Hayek.

Once again, Friedman was right. I don't know about you, but I don't need any government paper-pusher telling me what I can choose to eat where. These politicians are not here to help, they want control over you. Never forget that.

How to spend your free time...

If you have not done so already, pop over to --Ballista--> to read the commentary on the extraordinary days of June during WWII. Then, after reflected on the mettle of the soldiers and sailors who made those days so extraordinary, lighten up with one of the movies Ballista reviews in a few earlier posts.

I had this very experience last year from Dilbert's perspective - a meaningless chart crammed with colored shapes because the client was too stupid and lazy to read a report. This is why I refuse to work in corporations of any significant size.

Worth a Read

Being a Yankee means appreciating creative (and usually astoundingly simple) solutions to problems, be they unique or ubiquitous. Thus, I'm pirating borrowing a format from the intelligent authors of Marginal Revolution.com and presenting my own "Markets in Everything" post.

The Economist reports from Africa on the proliferation of personal banking services:

They have taken branches to the unbanked, either in prefabricated form, or in vans that make regular visits to under-served areas. Other countries are doing the same. In remote areas where delivering cash is hard, mini-machines have been installed in corner shops where customers print out a slip confirming they are in the black and present it to the shopkeeper, who provides the cash. Some rural branches and ATMs rely on solar energy and satellite phone connections.

How cool is that?! Wait, it gets even more amazing.

Standard Bank supplies an isolated branch on an island in Uganda's Lake Victoria by having planes drop bags of cash from the air.

Who says money doesn't fall from the sky - I'd love to know how much security that requires. Anyway, this is the type of innovation (and risk taking) that powers economic growth and freedom. Sadly, it is not all whiz-bang progress.

According to the World Bank, in 40 out of 48 countries in the region, it still takes over a year—and a long list of procedures—to enforce a contract.

A year! 12 months! 365 days! I don't have any data, but I'm guessing most contract disputes in the US and other industrialized countries are resolved in a matter of weeks or months. Actually, I'd bet that most are resolved before they ever get to adjudication. This is important because contract disputes, and enforcement of contracts, can be a tremendous dead weight loss for the parties involved and for the economy and society as a whole. See this post (fourth paragraph, but read the whole thing) for a brief glimpse of what I think about the state of litigation in America .

Bottom line, conditions are improving in Africa because of creative people and a little bit of risk taking. Although compared to the alternative of continued poverty, maybe the risk isn't that big.


Don't you love the irony of me blogging about innovation in a format that I effectively stole from another blogger. Ah, the glory of the Internet!